“A basic principal of modern state capitalism is that costs and risks are socialized to the extent possible, while profit is privatized” — Noam Chomsky
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In this quote, Noam Chomsky is criticizing how large corporations operate within capitalism. The best interpretation is:
- Chomsky argues that under “modern state capitalism”, corporations socialize costs and risks as much as possible – things like environmental damage, health impacts, and economic downturns are often offset by public funds and programs.
- However, profits generated from economic activity remain firmly private, pocketed by corporations and shareholders rather than being shared more broadly.
- His view is that this system privatizes rewards while socializing negative externalities, allowing corporations to reap gains while risks and burdens are pushed onto society, taxpayers, and future generations.
- The overall message is one of economic criticism – Chomsky believes this model of capitalism encourages irresponsible business practices by removing incentives for corporations to minimize social and environmental costs, since profits remain private while risks can be offset by public support