Chapter 697 - 326: Taming Capital
Pittsburgh, ICU.
Leo was leaning against the headboard, listening to Roosevelt lecture him.
Although his body was still weak, his mind was in a state of high excitement.
"Mr. President, Vance is coming," Leo said in his mind. "Ethan just got word. Pfizer’s corporate jet has already taken off."
"Of course he’s coming."
Roosevelt’s voice rang in his mind.
"Because he’s scared. The rumors about the vice presidency are absurd, but they represent a shift in the winds of power. What capital fears most is uncertainty. They have to come and find out your bottom line."
"How should I negotiate with him?" Leo asked. "Should I keep playing hardball? Force them to accept Pennsylvania’s drug prices?"
"Leo, your mindset is still wrong." Roosevelt’s voice turned serious. "You now represent power itself. Your perception of capital needs to change."
"Before, you were weak, so you communicated through deals, compromises, and even blackmail. But things are different now. As long as you handle it correctly, power will always be superior to capital."
"But, Mr. President, that’s the pharmaceutical industry. It’s a behemoth worth trillions," Leo retorted in his mind.
"Behemoths also need air and water." Roosevelt began his lesson. "Leo, you must understand that from ancient times to the present day, the structure of society has changed, the relations of production have changed, but the logic of rule has never changed."
"The methods of manipulating power have always been constant."
"First, the monopoly and distribution of resources. Whether it’s land and gold in ancient times, or oil, data, and legitimate violence in the modern era. Whoever can distribute rewards and inflict punishments is the ruler."
"Second, information asymmetry. Controlling the flow of information to shape perception is an eternal tool of power’s manipulation."
"Third, the construction of legitimacy. In ancient times, it relied on the Mandate of Heaven and bloodlines; in modern times, it relies on contracts and procedures. The rhetoric changes, but the goal is always to make the ruled believe that the current order is rational and necessary."
Roosevelt’s voice echoed in the space of Leo’s consciousness.
"The evolution of history has only changed the players in the game."
"In the agricultural age, one had to counterbalance the powerful clans, generals, and theocratic leaders. In the industrial age, one had to balance capitalists and Unions. Now, in the information age, one must guard against tech giants and transnational financial powers."
"But the logic of rule hasn’t changed. The ruler is always balancing the forces that are strong enough to threaten their position."
"The increase in modern productivity has drastically changed the efficiency and precision of how power operates."
"Modern big data surveillance can permeate every single transaction, while the methods of power have shifted from direct violence to covert inducement."
"But no matter how the shell changes, the core remains the same."
"The traditional logic of power views capital as plunder, as spoils of war. By creating laws and issuing licenses, it decides who can enter the core profit zones. In times of crisis, it can even forcibly seize control over the flow of capital."
"Modern power, however, no longer just suppresses capital from the outside. Instead, it uses a set of invisible systems to make capital discipline itself."
"Power defines what ’healthy capital’ is. It shapes the economic discourse through education and the media, making capitalists believe that cooperating with power is the only rational choice. This, in turn, internalizes political objectives as capital’s business objectives."
"The control of power in the modern United States presents a hybrid form of neo-state capitalism."
"Capital is never overtly forced, but under the incentive structures designed by power, it loses its autonomy, thereby becoming an efficient and docile component of the state machine."
Roosevelt’s voice became extremely piercing.
"So, Leo, stop thinking about problems like it’s a street brawl. You need to learn to manipulate and control through higher-level institutional design. That is the true meaning of possessing power."
Roosevelt continued, "Therefore, if you only focus on Pennsylvania’s drug prices, the most Vance will give you is a regional discount, and then they’ll quarantine you in this corner. That doesn’t solve the fundamental problem. Besides, once the heat dies down, they can go back on their word at any time."
"You need to make a big deal with them."
"A deal that will make them willingly spit out their profits, and even thank you for it."
"What kind of deal?" Leo was a little confused.
"In this country, who is the biggest benefactor of the pharmaceutical giants? Is it the patients? No, it’s the insurance companies and the Federal Government."
Roosevelt began to dissect the American healthcare system.
"The pharmaceutical giants love customers with commercial insurance. Because commercial insurance has high payout rates and relatively lax reviews, they can set exorbitant prices without any scruples. What they hate most is Medicare."
"Because that’s the government’s money. The government will negotiate prices, conduct audits, and limit reimbursement scopes. Especially for expensive patented drugs, Medicare is their nightmare."
"So, who uses Medicare?"
"Seniors," Leo answered. "Retirees over the age of 65."
"Exactly."
Roosevelt’s voice turned grim.
𝗳𝚛𝗲𝕖𝕨𝕖𝗯𝚗𝚘𝕧𝕖𝗹.𝗰𝗼𝕞
"What if... you could help them keep these seniors in the commercial insurance pool for a little longer?"
Leo froze for a moment. Then, a wild idea exploded in his mind.
"You mean..."
"The retirement age."
Roosevelt provided the answer.
"The population of the United States is aging, and the Social Security and Medicare funds are facing a massive shortfall. Washington has wanted to touch the retirement age for a long time, but no one has dared to bring it up."