Capitalism: The Nightmare

TD ORIGINALS
A worker in a costume representing world capitalism during a 2017 May Day rally in Jakarta, Indonesia. (Dita Alangkara / AP)

The neoliberal, arch-capitalist era we inhabit is chock-full of statistics and stories that ought to send chills down the spines of any caring, morally sentient human. Nearly three-fourths (71 percent) of the world’s population is poor, living on $10 a day or less, and 11 percent (767 million people, including 385 million children) live in what the World Bank calls “extreme poverty” (less than a $1.90 a day). Meanwhile, Oxfam reliably reports that, surreal as it sounds, the world’s eight richest people possess among themselves as much wealth as the poorest half of the entire human race.

The United States, self-described homeland and headquarters of freedom and democracy, is no exception to the harshly unequal global reality. Six of the world’s eight most absurdly rich people are U.S. citizens: Bill Gates (whose net worth of $426 billion equals the wealth of 3.6 billion people), Warren Buffett (Berkshire Hathaway), Jeff Bezos (Amazon), Mark Zuckerberg (Facebook), Larry Ellison (Oracle) and Michael Bloomberg (former mayor of New York City). As Bernie Sanders said repeatedly on the campaign trail in 2016, the top 10th of the upper 1 percent in the U.S. has nearly as much wealth as the nation’s bottom 90 percent. Seven heirs of the Walton family’s Walmart fortune have among them a net worth equal to that of the nation’s poorest 40 percent. Half the U.S. population is poor or near-poor, and half lacks any savings.

Just over a fifth of the nation’s children, including more than a third of black and Native American children, live below the federal government’s notoriously inadequate poverty level, while parasitic financiers and other capitalist overlords enjoy unimaginable hyper-opulence. One in seven U.S. citizens relies on food banks in “the world’s richest country.” Many of them are in families with full-time wage-earners—a reflection of the fact that wages have stagnated even as U.S. labor productivity consistently has risen for more than four decades.

Failure by Design

These savage inequalities reflect government policy on behalf of “the 1 percent” (better, perhaps, to say “the 0.1 percent”). U.S. economic growth since the late 1970s has been unequally distributed, thanks to regressive policy choices that have served the rich and powerful at the expense of ordinary working people. As Joshua Bivens of the Economic Policy Institute showed in his important 2011 study, “Failure by Design,” the following interrelated, bipartisan and not-so-public policies across the long neoliberal era have brought us to a level of inequality that rivals the Gilded Age of the late 19th-century robber barons era. These policies include:

● Letting the value of the minimum wage be eroded by inflation.
● Slashing labor standards for overtime, safety and health.
● Tilting the laws governing union organizing and collective bargaining strongly in favor of employers.
● Weakening the social safety net.
● Privatizing public services.
● Accelerating the integration of the U.S. economy with the world economy without adequately protecting workers from global competition.
● Shredding government oversight of international trade, currency, investment and lending.
● Deregulating the financial sector and financial markets.
● Valuing low inflation over full employment and abandoning the latter as a worthy goal of fiscal and economic policy.

These policies increased poverty and suppressed wages at the bottom and concentrated wealth at the top. They culminated in the 2007-09 Great Recession, sparked by the bursting of a housing bubble that resulted from the deregulation of the financial sector and the reliance of millions of Americans on artificially inflated real estate values and soaring household debt to compensate for poor earnings.

After the crash, the government under both George W. Bush and Barack Obama bailed out the very financial predators who pushed the economy over the cliff. The Obama administration, populated by Goldman Sachs and Citigroup operatives, left the rest of us to wonder “Where’s our bailout?” as 95 percent of the nation’s new income went to the top 1 percent during his first term.

Ordinary Citizens Have No Influence Over Their Government

All of this and much more is contrary to technically irrelevant American public opinion. But so what? You don’t have to be a leftist to know that the United States’ political order is a corporate and financial plutocracy. Three years ago, liberal political scientists Martin Gilens of Princeton University and Benjamin Page of Northwestern University determined that the U.S. political system has functioned as an oligarchy over the past three-plus decades, in which wealthy elites and their corporations rule. As Gilens explained to the liberal online journal Talking Points Memo, “Ordinary citizens have virtually no influence over what their government does in the United States.”

Shock Profits

Most of this results from the normal, business-rule-as-usual operation of the American political process. Sometimes—as during “natural disasters” such as Hurricanes Katrina, Harvey and Irma—crisis moments allow wealthy interests to rack up huge profits almost overnight while much of the population is too shocked and distracted to respond. As Susan Zakin notes in the Los Angeles Review of Books, “Handing out billions for hurricane reconstruction will shore up [Donald] Trump’s faltering support on Wall Street and among major corporations profiting from a bonanza expected to top $100 billion.” Katrina provided precisely such a business opportunity to corporate America. So did the U.S. invasion of Iraq.

‘Isn’t It Beautiful?’

At the same time, Houston, for instance, is a much bigger scene of devastation than it would be but for business-rule-as-usual. The city was recklessly built up by and for elite financial and real estate interests and their governmental tools without the slightest concern for environmental sustainability and resilience. As Zakin notes:

[W]ithout a zoning code, [Houston is] a case study in urban sprawl. Houston was built on a dry (read: low-lying) lakebed that’s laced with bayous. The bayous are lined with concrete, steel and sheet metal, which is functional when it rains a little, but a contender for the luge event when it rains a lot, even in posh neighborhoods like River Oaks. Doing what it takes to prevent flooding, widening bayou channels, managing growth, putting in green space, might impede the only truly important flow: money. Houston’s city fathers have resisted any effort to plan for climate change, because, well, it doesn’t exist. As if that weren’t enough, parts of Houston are sinking, some as much as 2.2 inches a year.

It’s an epitome of the deadly “free market” chaos favored by arch-capitalist political actors such as the right-wing billionaire Charles Koch and his friend, the “libertarian” Sen. Jeff Flake, R-Ariz. In his recent, widely read book, “Conscience of a Conservative,” Flake writes with fondness about the time he met the eminent neoliberal University of Chicago economist Milton Friedman:

We picked him up at the airport, and while we were driving to a suburb of Phoenix we went through what could only be described as suburban sprawl. Someone in the car with us, remarking on this landscape, said, ‘Man, it looks like there was no planning at all.’ Friedman just nodded his head and said, ‘Yes, isn’t it beautiful?’ … [I]t wasn’t government coercion that had brought it into being. It was the invisible hand of the free market. Planning requires control, control empowers government, and empowered government = disempowered individuals.

Houston is the “petro-metro,” a major capital of the petrochemical industry and home to numerous toxic waste sites. As a result, the city’s floodwaters are loaded with hazardous materials.

How beautiful.

The “free market” madness rolls on. Like the melting polar ice, which opens up new business opportunities for oil drilling and ship travel even as it reduces earth’s ability to reflect sunlight back into space, the devastation resulting from extreme weather is both a consequence of the rule of big corporations (the real masters of the “free market” since the early 20th century in the U.S.) and a perverse opportunity for quick corporate profits.

On Aug. 15, 10 days before Hurricane Harvey hit Texas, Donald Trump, himself a global real estate baron, wiped out an Obama-era executive ordermandating that federal reconstruction grants take account of sea-level rise and related aspects of climate change.

Capitalist Climate-astrophe

Meanwhile, speaking of climate change, anthropogenic—really, capitalogenic—global warming threatens to turn the venerable popular struggle for a more equal distribution of wealth into a fight over the slicing up of a poisoned pie. The signs of climate catastrophe are unmistakable. Record-setting wildfires raged on the nation’s West Coast, and a devastating drought plagued much of the nation’s northern Great Plains as Houston was sunk in epic, chemically polluted flooding and Irma bore down on Florida. Like Hurricane Sandy (which filled New York City subway tunnels with storm surge on the eve of the 2012 elections), the Indian and Pakistani heat waves of 2015, Hurricane Katrina (2005), the Alberta, Canada, wildfires of 2016 and numerous other recent, lethal, meteorological episodes, this extreme weather is intensified by the spiking balminess of the planet.

The warming is fueled by capital-captive humanity’s excessive release of carbon dioxide resulting from the profit system’s rapacious extraction and burning of fossil fuels and its reliance on animal agriculture. Carbon accumulates in the atmosphere, trapping heat and melting the world’s glaciers and permafrost, which holds vast reserves of carbon-rich methane. As the ice caps retreat, less sunlight gets reflected back into space and more of it heats the planet toward a point where it becomes uninhabitable.

Extreme weather is just the tip of the melting iceberg. If not reversed, global warming will destroy the human species through famine, dehydration, overheating, disease and resource wars. It has us on the path to hell.

‘A Death Knell for the Species’

Trump has taken advantage of the nation’s plutocratic political dysfunction to become a kind of one-man ecological apocalypse. The fossil-fueled hurricanes, drought and wildfires of 2017 have hit the U.S. at a time when the White House is occupied by an openly ecocidal billionaire whose election rang what Noam Chomsky called an environmental “death knell for the species.” Trump has pulled the United States out of the moderate Paris climate accord. He has removed all references to climate change from federal websites and chose a fellow petro-capitalist climate change denier dedicated to crippling the Environmental Protection Agency to lead that department. Trump’s secretary of state is the former longtime CEO of Exxon Mobil Corp., history’s most powerful fossil fuel corporation—a company that buried and then organized propaganda against its own scientists’ warnings on carbon’s impact on the climate. Trump’s proposed budget calls for a 16 percent cut to the National Oceanic and Atmospheric Administration, which monitors all things climate- and weather-related.

This is ecocidal petro-capitalist madness on steroids.

After Harvey nailed Houston and before Irma hit Florida, Trump held a chilling ecocidal rally in front of an oil refinery in North Dakota. He boasted of how he had exited the “job-killing” Paris agreement (“It was so bad”) and approved the planet-cooking and supposedly job-creating Dakota Access and Keystone XL pipelines.

“I also did Keystone,” Trump said. “You know about Keystone. Another other one, big one—big. First couple of days in office, those two—48,000 jobs.”

Trump said the White House was going to make North Dakota’s current terrible drought vanish because “we’re working hard on it and it’ll disappear. It will all go away.”

The president also asserted that the thousands of Americans who protested the Dakota Access pipeline within and beyond the Standing Rock Indian Reservation last year had no idea why they were against it.

It may have been his most absurd speech yet.

The System Is Working

Like so much else in U.S. government policy, Trump’s anti-environmental actions are contrary to majority-progressive public opinion. Who cares? It’s one more in a long line of examples showing that “We the People” are not sovereign in the failed, arch-plutocratic and militantly capitalist state that is the 21st century United States.

Many Americans find this difficult to process because they have been taught to foolishly conflate popular self-governance with capitalism—what the George W. Bush White House called “a single sustainable model for national success.”

This is a great lie. My old copy of Webster’s New Twentieth Century Dictionary defines capitalism as “the economic system in which all or most of the means of production and distribution … are privately owned and operated for profit, originally under fully competitive conditions: it has been generally characterized by a tendency toward concentration of wealth and, [in] its latter phase, by the growth of great corporations, increased government controls, etc.”

This definition does not mention any of the things routinely and inaccurately identified with capitalism in the dominant U.S. political and intellectual discourse: democracy, freedom, trade, job creation, growth and/or a “free market” that is characterized by widespread competition and/or little or no government interference. Capitalism is about profit for the owners of capital—period. They attain this through any number of means. The most damaging include:

● Seizing others’ land and materials.
● Slavery (the leading source of capital accumulation in the United States before it was outlawed in 1863–65).
● Firing workers or replacing them with technology.
● Undermining the value and power of labor by “de-skilling” workers by reducing the amount of knowledge and experience they need to do their jobs.
● Abject authoritarian tyranny in the workplace, where Marxist economist Richard Wolff reminds us that most working-age adults spend the majority of their waking hours.
● Outsourcing work to sections of the world economy with the lowest wages and the worst working conditions.
● Hiring and exploiting unprotected migrant workers.
● Slashing wages and benefits, or cheating workers out of them.
● Purely speculative investment.
● Forming monopolies and using them to raise prices.
● Dismantling competing firms, sectors and industries.
● Deadly pollution and perversion of the natural environment.
● Appropriating public assets.
● Military contracting and war production.
● Working to shape political and intellectual culture and policy in capital’s favor by funding political campaigns, hiring lobbyists, buying and controlling the media, manipulating public relations and propaganda, investing in the educational system, offering lucrative employment and other economic opportunities to policymakers and their families, holding key policymaking positions, and threatening to withdraw investment from places that don’t submit to capital’s rules while promising to invest in places that do.

When capitalism is understood for what it is really and only about—investor profit—there is nothing paradoxical about its failure to serve working people and the common good, much less the cause of democracy. If corporate and financial sector profits are high, the system is working for its architects and intended beneficiaries: capitalists. Its great corporations (now granted the legal protection of artificial personhood) are working precisely as they are supposed to under U.S. common law, which holds that (as Michigan’s Supreme Court ruled in Dodge v. Ford Motor Company in 1919), corporate “managers have a legal duty to put shareholders’ interests above all others and no legal authority to serve any other interests.”

The Growth Ideology

Environmental ruin lies at the heart of the system, intimately related back to class rule. As Le Monde’s former ecological editor Herve Kempf noted in his aptly titled 2007 book, “How the Rich Are Destroying the Earth,” the oligarchy sees the pursuit of material growth as “the solution to the social crisis,” the “sole means of fighting poverty and unemployment” and the “only means of getting societies to accept extreme inequalities without questioning them.”

“Growth,” Kempf explained, is meant to “allow the overall level of wealth to arise and consequently improve the lot of the poor without—and this part is never spelled out—any need to modify the distribution of wealth.”

Trump was channeling this deadly “growth ideology” in North Dakota. Sadly, growth on the current carbon-fueled capitalist model has put humanity—not to mention thousands of other sentient beings on earth—on the path to near-term (historically speaking) extinction. We are currently at 410 carbon parts per million in the atmosphere—60 ppm beyond what scientists identified as a hazardous point years ago. We are on pace for 500 ppm—a level that will destroy life on earth—by 2050, if not sooner.

‘Inclusive Capitalism’

“Capitalist democracy” is an oxymoron and a mirage. So is the curious notion of “inclusive capitalism”—a term taken up by the corporate right wing of the Democratic Party, including Hillary Clinton’s closest economic advisers, in 2015. This is the Orwellian name of a global “coalition” set up in 2014 by Lady Lynn Forester de Rothschild for super-wealthy elites to advance a “caring capitalism” that “works better for the broad base of society.” Lady Rothschild’s Coalition for Inclusive Capitalism started with what former Rep. Cynthia McKinney described as “a Working Group comprised of such luminaries of social justice as Sir Evelyn de Rothschild of E.L. Rothschild [a financial firm owned by a family worth an estimated $2 trillion], Dominic Barton from McKinsey and Company [$1.3 billion], Ann Cairns [annual salary of $5 million] of MasterCard, Sir Sherard Cowper-Coles of HSBC, Paul Polman [paid 10 million euros in 2014] of Unilever, along with CEOs of various pension plans and philanthropic foundations, like the eponymous Ford and Rockefeller foundations.”

According to one British media report, the Coalition for Inclusive Capitalism’s opening conference boasted a “guest-list … estimated to hold one-third of the world’s investable assets, around £18tr [nearly $25 trillion].”

One of the coalition’s leading speakers and champions is the great arch-neoliberal, former U.S. President Bill Clinton (with a net worth of $80 million)—a right-wing Democrat who did every bit as much to advance the Wall Street “free market” and globalist agenda as Ronald Reagan.

‘We Must Make Our Choice’

One does not have to be a Marxist or other variety of radical to acknowledge basic differences and conflicts between capitalism and democracy. D and capitalism have very different beliefs about the proper distribution of power,” liberal economist Lester Thurow noted in the mid-1990s. “One [democracy] believes in a completely equal distribution of political power, ‘one man, one vote,’ while the other [capitalism] believes that it is the duty of the economically fit to drive the unfit out of business and into extinction. … To put it in its starkest form, capitalism is perfectly compatible with slavery. Democracy is not.”

More than being compatible with slavery and incompatible with democracy, U.S. capitalism arose largely on the basis of black slavery in the cotton-growing states (as historian Edward Baptist has shown in his prize-winning study, “The Half Has Never Been Told: Slavery and the Making of American Capitalism”) and is, in fact, quite militantly opposed to democracy.

“We must make our choice,” the late Supreme Court Justice Louis Brandeis is reputed to have said or written: “We may have democracy in this country, or we may have wealth concentrated in the hands of a few, but we cannot have both.” This statement was unintentionally but fundamentally anti-capitalist. Consistent with the dictionary definition presented above, the brilliant, liberal, French economist Thomas Piketty has shown that capitalism has always been inexorably pulled like gravity toward the concentration of wealth into ever-fewer hands. In the U.S., as across the Western world, the tendency was briefly and partially reversed by the Great Depression and World War II, producing the long “middle class” Golden Age of 1945-1973. But that was an anomalous era, a consequence of epic economic collapse and two global wars. Capitalism has returned to its longue durée inegalitarian norm over the last four-plus decades.

And even before the onset of the neoliberal period, capitalism at its comparatively egalitarian and high-growth, post-WWII Keynesian best had already pushed livable ecology into crisis. It tipped the world into what leading earth scientists have designated a new geological era: The Anthropocene—a period when “human activities have become so pervasive and profound that they rival the great forces of Nature and are pushing the earth into planetary terra incognita … a less biologically diverse, less forested, much warmer, and probably wetter and stormier era.” The not-so-Golden Agebrought what sociology professor John Bellamy Foster called “a qualitative transformation in the level of human destructiveness.” If this ecological destructiveness isn’t tamed very soon, nothing that progressives and the left care about is going to matter much: Who wants to turn a poisoned world upside down?

Can environmental catastrophe be averted under capitalism? Not likely. Shifting from fossil fuel reliance and other unsound environmental societal habits and practices—built-in obsolescence, mass consumerism and the endless pursuit of quantitative economic growth, accumulation and “cheap nature” resource appropriation—requires a level of coordinated social and public intervention so extreme that it is incompatible with continued capitalist control of the means of production, investment and distribution. It requires an empowerment of ordinary people and a radical rehabilitation of the concept of the natural and social commons—things that very likely cannot be attained under the continued rule of capital. Stark as American activist Joel Kovel’s formulation may sound, I suspect he is right: “The future will be eco-socialist, because without eco-socialism there will be no future.”

Paul Street
Contributor
Paul Street holds a doctorate in U.S. history from Binghamton University. He is former vice president for research and planning of the Chicago Urban League. Street is also the author of numerous books,…
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Obama adviser Samantha Power calls for crackdown on social media

Internet censorship and government war plans

21 September 2017

The meeting of the United Nations General Assembly in New York is taking place under the shadow of the accelerating drive of the major powers, spearheaded by the United States, toward World War III. This found its most noxious expression in the fascistic speech delivered to the assembly on Tuesday by Donald Trump, in which the US president threatened to “destroy North Korea” and attack Iran and Venezuela.

Trump devoted a significant portion of his tirade to a denunciation of socialism and communism, reflecting the fear within the US ruling elite of the growth of social opposition and rise of anti-capitalist and socialist sentiment in the working class.

Another major focus of the assembly is the mounting campaign of the US and European governments to crack down on the exchange of information and views on the Internet. British Prime Minister Theresa May, French President Emmanuel Macron and Italian Prime Minister Paolo Gentiloni all used the pretext of fighting terrorism and “fake news” to call for more drastic measures by the major technology firms to censor the Internet, which Gentiloni called a “battlefield for hearts and minds.”

This attack on free speech is a central part of the response of the crisis-ridden capitalist ruling elites to the growth of global geo-political tensions and economic instability, and the political radicalization of broad masses of workers and youth.

In the US, the drive for Internet censorship has been spearheaded by the so-called “liberal” wing of the political establishment, concentrated in the Democratic Party, whose chief media organ is the New York Times. On the eve of the UN assembly, the Times published an unambiguous brief for censorship of the Internet in the form of an op-ed column by the ambassador to the UN under Barack Obama, Samantha Power.

Under the headline “Why Foreign Propaganda Is More Dangerous Now,” and on the pretext of combating Russian disinformation and subversion, Power calls for the use of “professional gatekeepers” to police public discourse on the Internet.

Power, a leading proponent of “human rights” imperialism, looks back nostalgically at the Cold War as a golden age of news dissemination, when “most Americans received their news and information via mediated platforms.” She continues: “Reporters and editors serving in the role of professional gatekeepers had almost full control over what appeared in the media. A foreign adversary seeking to reach American audiences did not have great options for bypassing these umpires, and Russian disinformation rarely penetrated.”

It is worth considering who is writing these lines. First as a key policy advisor to Obama, then as Washington’s representative to the United Nations, Power was a leading architect of the disastrous US-led destabilization operation in Libya that shattered that country’s society. She is a key propagandist of the American-instigated civil war in Syria, which has led to hundreds of thousands of deaths and the greatest refugee crisis since the Second World War.

Power longs for the time when, as was the case during the Korean War and the earlier part of the Vietnam War, the monopoly of the major broadcasters over public discourse could be used to keep the criminal policies of US imperialism under wraps.

She is bitter and resentful over the fact that, despite the best efforts of the corporate-controlled media to sell US operations in the Middle East to the public as anti-terrorist and humanitarian efforts, organizations such as Wikileaks and journalists such as Seymour Hersh have exposed the fact that the United States has cultivated alliances with forces linked to Al Qaeda and ISIS to pursue regime-change in Libya and Syria, totally undercutting the narrative of the “war on terror” that has been used to justify US imperialist policy since 2001.

If Power had her way, Chelsea Manning’s exposure of the murder of journalists and Iraqi civilians by the US military and Edward Snowden’s exposure illegal dragnet surveillance by the NSA would be branded as “fake news” and blocked by technology giants such as Google, Apple and Facebook.

In her Times column, she mourns the passing of the overarching—and thoroughly repressive—anti-communist ideological framework of the Cold War period, writing: “During the Cold War, the larger struggle against communism created a mainstream consensus about what America stood for and against. Today, our society appears to be defined by a particularly vicious form of ‘partyism’ affecting Democrats and Republicans alike.”

Power presents the rise of the Internet, and consequent weakening of control over the flow of information and opinion by state-sanctioned and allied corporate media outlets such as the Times, as an altogether dangerous and negative development. Under conditions where the establishment media is increasingly discredited—“60 percent believe news stories today are ‘often inaccurate,’ according to Gallup”—Power notes, the fact that “two thirds of Americans are getting at least some of their news through social media” is a matter of the gravest concern.

The “growing reliance on new media—and the absence of real umpires,” she writes, have opened up the US to disinformation and subversion at the hands of a demonic Russia, with its all-powerful media outlets RT and Sputnik, and its “trolls, bots and thousands of fake Twitter and Facebook accounts that amplified damaging stories on Hillary Clinton.”

Here we see the coming together of the hysterical, neo-McCarthyite campaign against Russia that has been used by the intelligence agencies, the Democratic Party and their media allies to attempt to whip up a war fever and pressure Trump to take a more bellicose posture toward Moscow with a growing attack on public access to anti-war, progressive and socialist web sites.

Power’s demands for state-sponsored censorship have already been put into practice by Internet giant Google. In the name of combating “fake news” and promoting “authoritative content” over “alternative viewpoints,” Google has implemented changes to its search engine that have slashed traffic to leading left-wing and alternative news web sites by 55 percent. The central target of this attack is the World Socialist Web Site, whose Google referrals have fallen by 75 percent.

By “gatekeepers,” Power means the thoroughly vetted and subservient editorial boards of newspapers such as the Times, which dutifully hide from the American people whatever the CIA and State Department do not want them to know, while dispensing state lies and propaganda in the guise of “news.”

In 2010, then-New York Times Executive Editor Bill Keller spelled out the policy of such “mediated” news outlets with unusual bluntness when he declared that “transparency is not an absolute good.” He added, “Freedom of the press includes freedom not to publish, and that is a freedom we exercise with some regularity.”

More than a quarter century after the dissolution of the Soviet Union, all factions of the US ruling elite are haunted by the realization that socialist politics are, as Hillary Clinton put it in her recently published book, tapping “into powerful emotional currents” within the population. The fact that in the 2016 Democratic primaries, 12 million Americans, mostly young people and workers, voted for a candidate, Bernie Sanders, who called himself a socialist, shocked and unnerved the ruling class.

Unable to advance any policies to address the social grievances of working people or turn away from its foreign agenda of militarism and war, the ruling elite responds to the growth of opposition by recourse to police methods. The escalating corporate-state attack on freedom of speech on the Internet makes all the more urgent the campaign of the World Socialist Web Site against Google censorship. We call on all of our readers and supporters to sign our petition demanding an end to the censorship, send statements of support for our campaign, and actively work to distribute WSWS articles as widely as possible via Facebook and other social media outlets.

Andre Damon

WSWS

The Silencing of Dissent

Mr. Fish

 

The ruling elites, who grasp that the reigning ideology of global corporate capitalism and imperial expansion no longer has moral or intellectual credibility, have mounted a campaign to shut down the platforms given to their critics. The attacks within this campaign include blacklisting, censorship and slandering dissidents as foreign agents for Russia and purveyors of “fake news.”

No dominant class can long retain control when the credibility of the ideas that justify its existence evaporates. It is forced, at that point, to resort to crude forms of coercion, intimidation and censorship. This ideological collapse in the United States has transformed those of us who attack the corporate state into a potent threat, not because we reach large numbers of people, and certainly not because we spread Russian propaganda, but because the elites no longer have a plausible counterargument.

The elites face an unpleasant choice. They could impose harsh controls to protect the status quo or veer leftward toward socialism to ameliorate the mounting economic and political injustices endured by most of the population. But a move leftward, essentially reinstating and expanding the New Deal programs they have destroyed, would impede corporate power and corporate profits. So instead the elites, including the Democratic Party leadership, have decided to quash public debate. The tactic they are using is as old as the nation-state—smearing critics as traitors who are in the service of a hostile foreign power. Tens of thousands of people of conscience were blacklisted in this way during the Red Scares of the 1920s and 1950s. The current hyperbolic and relentless focus on Russia, embraced with gusto by “liberal” media outlets such as The New York Times and MSNBC, has unleashed what some have called a virulent “New McCarthyism.”

The corporate elites do not fear Russia. There is no publicly disclosed evidence that Russia swung the election to Donald Trump. Nor does Russia appear to be intent on a military confrontation with the United States. I am certain Russia tries to meddle in U.S. affairs to its advantage, as we do and did in Russia—including our clandestine bankrolling of Boris Yeltsin, whose successful 1996 campaign for re-election as president is estimated to have cost up to $2.5 billion, much of that money coming indirectly from the American government. In today’s media environment Russia is the foil. The corporate state is unnerved by the media outlets that give a voice to critics of corporate capitalism, the security and surveillance state and imperialism, including the network RT America.

My show on RT America, “On Contact,” like my columns at Truthdig, amplifies the voices of these dissidents—Tariq Ali, Kshama Sawant, Mumia Abu-Jamal, Medea Benjamin, Ajamu Baraka, Noam Chomsky, Dr. Margaret Flowers, Rania Khalek, Amira Hass, Miko Peled, Abby Martin, Glen Ford, Max Blumenthal, Pam Africa, Linh Dinh, Ben Norton, Eugene Puryear, Allan Nairn, Jill Stein, Kevin Zeese and others. These dissidents, if we had a functioning public broadcasting system or a commercial press free of corporate control, would be included in the mainstream discourse. They are not bought and paid for. They have integrity, courage and often brilliance. They are honest. For these reasons, in the eyes of the corporate state, they are very dangerous.

The first and deadliest salvo in the war on dissent came in 1971 when Lewis Powell, a corporate attorney and later a Supreme Court justice, wrote and circulated a memo among business leaders called “Attack on American Free Enterprise System.” It became the blueprint for the corporate coup d’état. Corporations, as Powell recommended in the document, poured hundreds of millions of dollars into the assault, financing pro-business political candidates, mounting campaigns against the liberal wing of the Democratic Party and the press and creating institutions such as the Business Roundtable, The Heritage Foundation, the Manhattan Institute, the Cato Institute, Citizens for a Sound Economy, the Federalist Society and Accuracy in Academia. The memo argued that corporations had to fund sustained campaigns to marginalize or silence those who in “the college campus, the pulpit, the media, and the intellectual and literary journals” were hostile to corporate interests.

Powell attacked Ralph Nader by name. Lobbyists flooded Washington and state capitals. Regulatory controls were abolished. Massive tax cuts for corporations and the wealthy were implemented, culminating in a de facto tax boycott. Trade barriers were lifted and the country’s manufacturing base was destroyed. Social programs were slashed and funds for infrastructure, from roads and bridges to public libraries and schools, were cut. Protections for workers were gutted. Wages declined or stagnated. The military budget, along with the organs of internal security, became ever more bloated. A de facto blacklist, especially in universities and the press, was used to discredit intellectuals, radicals and activists who decried the idea of the nation prostrating itself before the dictates of the marketplace and condemned the crimes of imperialism, some of the best known being Howard Zinn, Noam Chomsky, Sheldon Wolin, Ward Churchill, Nader, Angela Davis and Edward Said. These critics were permitted to exist only on the margins of society, often outside of institutions, and many had trouble making a living.

The financial meltdown of 2008 not only devastated the global economy, it exposed the lies propagated by those advocating globalization. Among these lies: that salaries of workers would rise, democracy would spread across the globe, the tech industry would replace manufacturing as a source of worker income, the middle class would flourish, and global communities would prosper. After 2008 it became clear that the “free market” is a scam, a zombie ideology by which workers and communities are ravaged by predatory capitalists and assets are funneled upward into the hands of the global 1 percent. The endless wars, fought largely to enrich the arms industry and swell the power of the military, are futile and counterproductive to national interests. Deindustrialization and austerity programs have impoverished the working class and fatally damaged the economy.

The establishment politicians in the two leading parties, each in service to corporate power and responsible for the assault on civil liberties and impoverishment of the country, are no longer able to use identity politics and the culture wars to whip up support. This led in the last presidential campaign to an insurgency by Bernie Sanders, which the Democratic Party crushed, and the election of Donald Trump.

Barack Obama rode a wave of bipartisan resentment into office in 2008, then spent eight years betraying the public. Obama’s assault on civil liberties, including his use of the Espionage Act to prosecute whistleblowers, was worse than those carried out by George W. Bush. He accelerated the war on public education by privatizing schools, expanded the wars in the Middle East, including the use of militarized drone attacks, provided little meaningful environmental reform, ignored the plight of the working class, deported more undocumented people than any other president, imposed a corporate-sponsored health care program that was the brainchild of the right-wing Heritage Foundation, and prohibited the Justice Department from prosecuting the bankers and financial firms that carried out derivatives scams and inflated the housing and real estate market, a condition that led to the 2008 financial meltdown. He epitomized, like Bill Clinton, the bankruptcy of the Democratic Party. Clinton, outdoing Obama’s later actions, gave us the North American Free Trade Agreement (NAFTA), the dismantling of the welfare system, the deregulation of the financial services industry and the huge expansion of mass incarceration. Clinton also oversaw deregulation of the Federal Communications Commission, a change that allowed a handful of corporations to buy up the airwaves.

The corporate state was in crisis at the end of the Obama presidency. It was widely hated. It became vulnerable to attacks by the critics it had pushed to the fringes. Most vulnerable was the Democratic Party establishment, which claims to defend the rights of working men and women and protect civil liberties. This is why the Democratic Party is so zealous in its efforts to discredit its critics as stooges for Moscow and to charge that Russian interference caused its election defeat.

In January there was a report on Russia by the Office of the Director of National Intelligence. The report devoted seven of its 25 pages to RT America and its influence on the presidential election. It claimed “Russian media made increasingly favorable comments about President-elect Trump as the 2016 US general and primary election campaigns progressed while consistently offering negative coverage of Secretary [Hillary] Clinton.” This might seem true if you did not watch my RT broadcasts, which relentlessly attacked Trump as well as Clinton, or watch Ed Schultz, who now has a program on RT after having been the host of an MSNBC commentary program. The report also attempted to present RT America as having a vast media footprint and influence it does not possess.

“In an effort to highlight the alleged ‘lack of democracy’ in the United States, RT broadcast, hosted, and advertised third party candidate debates and ran reporting supportive of the political agenda of these candidates,” the report read, correctly summing up themes on my show. “The RT hosts asserted that the US two-party system does not represent the views of at least one-third of the population and is a ‘sham.’ ”

It went on:

RT’s reports often characterize the United States as a ‘surveillance state’ and allege widespread infringements of civil liberties, police brutality, and drone use.

RT has also focused on criticism of the US economic system, US currency policy, alleged Wall Street greed, and the US national debt. Some of RT’s hosts have compared the United States to Imperial Rome and have predicted that government corruption and “corporate greed” will lead to US financial collapse.

Is the corporate state so obtuse it thinks the American public has not, on its own, reached these conclusions about the condition of the nation? Is this what it defines as “fake news”? But most important, isn’t this the truth that the courtiers in the mainstream press and public broadcasting, dependent on their funding from sources such as the Koch brothers, refuse to present? And isn’t it, in the end, the truth that frightens them the most? Abby Martin and Ben Norton ripped apart the mendacity of the report and the complicity of the corporate media in my “On Contact” show titled “Real purpose of intel report on Russian hacking with Abby Martin & Ben Norton.”

In November 2016, The Washington Post reported on a blacklist published by the shadowy and anonymous site PropOrNot. The blacklist was composed of 199 sites PropOrNot alleged, with no evidence, “reliably echo Russian propaganda.” More than half of those sites were far-right, conspiracy-driven ones. But about 20 of the sites were major left-wing outlets including AlterNet, Black Agenda Report, Democracy Now!, Naked Capitalism, Truthdig, Truthout, CounterPunch and the World Socialist Web Site. The blacklist and the spurious accusations that these sites disseminated “fake news” on behalf of Russia were given prominent play in the Post in a story headlined “Russian propaganda effort helped spread ‘fake news’ during the election, experts say.” The reporter, Craig Timberg, wrote that the goal of the Russian propaganda effort, according to “independent researchers who have tracked the operation,” was “punishing Democrat Hillary Clinton, helping Republican Donald Trump and undermining faith in American democracy.” Last December, Truthdig columnist Bill Boyarsky wrote a good piece about PropOrNot, which to this day remains essentially a secret organization.

The owner of The Washington Post, Jeff Bezos, also the founder and CEO of Amazon, has a $600 million contract with the CIA. Google, likewise, is deeply embedded within the security and surveillance state and aligned with the ruling elites. Amazon recently purged over 1,000 negative reviews of Hillary Clinton’s new book, “What Happened.” The effect was that the book’s Amazon rating jumped from 2 1/2 stars to five stars. Do corporations such as Google and Amazon carry out such censorship on behalf of the U.S. government? Or is this censorship their independent contribution to protect the corporate state?

In the name of combating Russia-inspired “fake news,” Google, Facebook, Twitter, The New York Times, The Washington Post, BuzzFeed News, Agence France-Presse and CNN in April imposed algorithms or filters, overseen by “evaluators,” that hunt for key words such as “U.S. military,” “inequality” and “socialism,” along with personal names such as Julian Assange and Laura Poitras, the filmmaker. Ben Gomes, Google’s vice president for search engineering, says Google has amassed some 10,000 “evaluators” to determine the “quality” and veracity of websites. Internet users doing searches on Google, since the algorithms were put in place, are diverted from sites such as Truthdig and directed to mainstream publications such as The New York Times. The news organizations and corporations that are imposing this censorship have strong links to the Democratic Party. They are cheerleaders for American imperial projects and global capitalism. Because they are struggling in the new media environment for profitability, they have an economic incentive to be part of the witch hunt.

The World Socialist Web Site reported in July that its aggregate volume, or “impressions”—links displayed by Google in response to search requests—fell dramatically over a short period after the new algorithms were imposed. It also wrote that a number of sites “declared to be ‘fake news’ by the Washington Post’s discredited [PropOrNot] blacklist … had their global ranking fall. The average decline of the global reach of all of these sites is 25 percent. …”

Another article, “Google rigs searches to block access to World Socialist Web Site,” by the same website that month said:

During the month of May, Google searches including the word “war” produced 61,795 WSWS impressions. In July, WSWS impressions fell by approximately 90 percent, to 6,613.

Searches for the term “Korean war” produced 20,392 impressions in May. In July, searches using the same words produced zero WSWS impressions. Searches for “North Korea war” produced 4,626 impressions in May. In July, the result of the same search produced zero WSWS impressions. “India Pakistan war” produced 4,394 impressions in May. In July, the result, again, was zero. And “Nuclear war 2017” produced 2,319 impressions in May, and zero in July.

To cite some other searches: “WikiLeaks,” fell from 6,576 impressions to zero, “Julian Assange” fell from 3,701 impressions to zero, and “Laura Poitras” fell from 4,499 impressions to zero. A search for “Michael Hastings”—the reporter who died in 2013 under suspicious circumstances—produced 33,464 impressions in May, but only 5,227 impressions in July.

In addition to geopolitics, the WSWS regularly covers a broad range of social issues, many of which have seen precipitous drops in search results. Searches for “food stamps,” “Ford layoffs,” “Amazon warehouse,” and “secretary of education” all went down from more than 5,000 impressions in May to zero impressions in July.

The accusation that left-wing sites collude with Russia has made them theoretically subject, along with those who write for them, to the Espionage Act and the Foreign Agent Registration Act, which requires Americans who work on behalf of a foreign party to register as foreign agents.

The latest salvo came last week. It is the most ominous. The Department of Justice called on RT America and its “associates”—which may mean people like me—to register under the Foreign Agent Registration Act. No doubt, the corporate state knows that most of us will not register as foreign agents, meaning we will be banished from the airwaves. This, I expect, is the intent. The government will not stop with RT. The FBI has been handed the authority to determine who is a “legitimate” journalist and who is not. It will use this authority to decimate the left.

This is a war of ideas. The corporate state cannot compete honestly in this contest. It will do what all despotic regimes do—govern through wholesale surveillance, lies, blacklists, false accusations of treason, heavy-handed censorship and, eventually, violence.

Chris Hedges
Columnist
Chris Hedges is a Pulitzer-prize winning journalist, New York Times best selling author, former professor at Princeton University, activist and ordained Presbyterian minister. He has written 11 books,…

Millennial children use smartphones to spy on their parents

Smartphones’ tracking features have caused a role-reversal; one woman observed her parents lie about dinner plans

Millennial children use smartphones to spy on their parents
(Credit: Getty/Rawpixel Ltd)

Buried in a Wall Street Journal story about savvy young Americans using technology to get a one-up on their parents lies a tale of the Millennial family drama.

This generation of young adults is leading the anti-Trump charge. They’re killing industry after industry, but keeping libraries alive. But most importantly, they’re living with their parents, because, despite their education, they can’t find jobs to keep them afloat.

So, the generation that matured in tandem with the internet is able to use their parents’ phones to determine where their parents are at all times. And the Wall Street Journal looked at this trend, finding that there were a number of teens and young adults who were using this app for Ferris Bueller-like debauchery — throwing sleepovers for friends and cleaning up just before their parents were home, for example. But one story stood out, because it’s just the sad tale of a couple — this woman’s parents — who just want a cheap night out.

Alexa McDonald of Columbus, Ohio, discovered that her parents fib a bit. The 24-year-old call-center dispatcher’s app revealed that, while claiming to be stuck in traffic, they were sometimes at a restaurant. “I never called them out on it, but inside in my head I was like, ‘I’m hungry, I would have loved to have been included in that.’”

“I guess we’ve done that,” says her mother, Claudia McDonald of Mount Vernon, Ohio. One reason: “Whatever the dish is, she always wants shrimp on it,” she says. “It’s one of the more expensive things on the menu.”

Millennials are ruining family dinners.

The Story: Life, the World, Now, You, and Me

Hi. I’m Umair. I want to tell you a little story about life, death, meaning, purpose, happiness, you, me, the world, and why I founded Eudaimonia & Co.

A couple of years ago, right at the peak of it all, jetting around the globe, writing books, giving speeches, invulnerable as a rock, I got sick. Keeling-over-losing-fifty-pounds-in-a-month-sick. The doctors told me I had months to live. And after the heart-stopping panic subsided, a funny thing happened: I was happy, thinking and writing about the meaning of it all, in a way I’d never really been discussing economics, leadership, and society.

Dying young — or at least thinking you’re going to — is like climbing the Mount Everest of inner clarity. You think about life. Not in a mournful way. Maybe you haven’t lived enough for that yet. Just in an appreciative one. Life is a funny thing. Unique, singular, strange. Camus famously called it absurd. It’s the only thing in a lonely, clockwork universe that struggles. Rivers flow, clouds dissipate, oceans ebb. But only life undertakes an improbable, uncertain, difficult quest for self-realization. A tree stretches into the sun. A little bird builds a nest. You strive mightily all your days long for happiness, meaning, purpose, grace, defiance, rebellion, truth, knowledge, beauty, love. That quest is what makes life so strikingly different from dust, fire, mud, air.

Only today our quest for self-realization doesn’t seem to be going so well. If I asked you, “how do you think the world’s doing?”, I’d bet your reply would be on the spectrum between not-so-well and dire, not pretty good and fantastic. Which is just as I’d had to warn of, and that’s why writing about economics always made me unhappy. Maybe the fate of the world wasn’t my cross to bear. Maybe it isn’t any of ours. But I didn’t know that then. And yet. The world seems suddenly different now, doesn’t it? The headlines now are an almost comically absurd smorgasbord of catastrophe: nuclear war, Nazis, natural disaster, societies fracturing, impotent frustration at it all.

It’s a head-spinning, anxiety-inducing time. It’s even scarier to admit it, so let’s do it together. Climate change. Stagnation. Inequality. Extremism. They feel different, more threatening. Bigger and badder than yesterday’s problems. They are. These are Massive Existential Problems. To societies, cities, democracy. To you and I and our kids. To the entire planet. Why are they all happening at once? How are we to solve them? Can we? If we don’t, problems only create more problems. Climate change creates refugees, famine, starvation. Stagnation creates authoritarianism. Inequality and extremism create war. A vicious circle, a savage feedback loop of problems. We’re at cruising altitude — but the engines are stalling. A nose dive of human possibility looms.

How did we get here? Every age has a paradigm of human organization. A set of defining principles and beliefs about what life is for. In the past, you can think of things like tribalism, feudalism, mercantilism, and so on. What’s our paradigm? Why isn’t it working?

Every paradigm’s end, purpose, defines it. We organize — whether countries, companies, societies, days, projects, investments — for just one sole end: maximizing income. Whether it’s called GDP, profits, shareholder value, all are more or less different words for the same imperative: the most income over the smallest increment of time an organization can produce. This overarching social goal of maximizing income trickles down into maximizing incomes for corporations and firms and banks and households so on.

Today’s paradigm of human organization — which is a relic of the industrial age — is economic. Our lives — in fact, all life on the planet, in fact, all life in the universe, because life on this planet is the only life that we know of anywhere in existence — are thus oriented around the pursuit of a single end: maximizing short-term income. Maximizing immediate financial income is the sole purpose of all the life that we know of, which all the life that there is.

Here’s the problem.

In the economic paradigm, well-being, the fullness of life’s quest for self-realization — whether or not lives are growing, flourishing, becoming, developing, to what degree, extent, duration, quality, whether it’s your life, my life, our grandkids’ lives, or the planet’s life — is nonexistent. It’s not conceptualized, represented, counted, measured, quite literally valued. Not in GDP, corporate reports, profits, markets, theories, models, prices, costs, benefits, anywhere. Not even in the smallest way — quantitatively, functionally, arithmetically — and so certainly not in the truest way: qualitatively, conceptually, substantively. And so because well-being, life itself, isn’t represented or valued, it’s not worth anything according to the calculus of this paradigm.

What do you with stuff that’s free? Well, you take it. So the economic paradigm uses up, drains, exhausts all the many kinds of well-being above to attain it’s sole end, how much immediate income it can produce. Let me give you two examples. If we break each others’ legs, GDP will go up, not down. We’ll have to take taxis to work, and pay for more medical care, which are counted as “gains”. Does that example strike you as absurd? It is, but it’s very real: in the extreme case, you get a society where an economy is growing, but life expectancy is falling — modern day America.

Life itself — in it’s truest sense, as a quest for self-realization — is systemically undervalued, underrepresented, and under-understood by the economic paradigm of human organization. Let me put that a little more bluntly. The economic paradigm of human organization doesn’t care. About life. Yours, mine, our grandkids, our planet’s. In any of it’s three aspects: not it’s potential, nor it’s possibility, nor it’s reality — life a beautiful and universal quest for self-realization. It’s sole end is maximizing immediate income. It doesn’t care if you’re happy or miserable, if you’re fulfilled or hollow, if you’re humane and gentle and wise or cruel and brutish and spiteful, if you flourish or wither as a human being, if the oceans dry up and die or teem joyously, if the skies turn to ash, if if you, me, our grandkids, or the planet, dies young or old, or if any of us live or die at all, in fact. It just doesn’t care. It wasn’t designed to. Thus, all that possibility, all that potential, is never realized: it’s used up to maximize immediate income. More and more, maximizing immediate income minimizes life’s potential.

And that’s the hidden thread that connects today’s four Massive Existential Problems. Climate change happens when the planet’s well-being is used up to maximize immediate income. Stagnation happens when people’s well-being is used up to maximize immediate income. Inequality happens when a society’s well-being is used up to maximize immediate income. And extremism is a result of all that ripping yesterday’s stable and prosperous social contracts to shreds. Today’s great global problems are just surface manifestations of the same underlying breakdown — a badly, fatally, irreparably broken paradigm of human organization.

The paradigm is the problem. A solely, paradigmatically, one-dimensional economic approach to human organization. That old, rusting, busted, industrial-age, economic paradigm is what’s created the Massive Existential Threats the world faces today. The single-minded pursuit of maximizing short-term income (versus, for example, optimizing long-run well-being) is what’s ignited inequality, stagnation, climate change, and extremism — and the later problems that are likely to stem from them.

And so — it’s no coincidence — here we are. Desperately clutching the controls in a nose dive of human possibility. But the controls don’t seem to work anymore, do they?

Every age has a challenge. Here’s today’s. Crafting a new — perhaps a radically new — paradigm of human organization, that values, represents, respects, celebrates, elevates, and expands life. Life is an impossibly big word, because it is such a strange and striking and impossible thing. Yet when you and I say “life”, we don’t mean some kind of actuarial probability table, the one-dimensional way the economic paradigm values things, but life in all its fragility, messiness, emergence, contradiction, complexity. Life in that sense, as self-realization, is more and more what’s minimized by the economic paradigm of human organization, so that it can maximize income. That’s what a broken paradigm means, and because it is the problem inside all the problems, that is what needs to be fixed, reversed, upended, turned around, with a better one. So how can we —

“Wait”, you cry. “Why should I care?” I see extreme capitalism has trained you well, young Darth. I sympathize. I didn’t want to either, remember? I just wanted to die happily. And yet. We — you and I — are going to have to care for a very simple reason. No matter how glorious your startup, moneyed your giant corporation or investment fund, mighty your city or country — today’s Massive Existential Problems are going to take you down too. Think your company can function without working societies? Your startup without a planet? Your country while its cities drown? Think again. Sure, you can ignore it all, but you’re only kidding yourself. The world feels broken because it is, and none of us are mighty enough to keep on escaping its expanding catastrophes by a thinner hair’s breadth of victory on our own little treadmill. The precise opposite is true: it’s up to us to make it better, and not just some of us, but each and every one of us. Sorry. Welcome to reality. Here’s a little consolation. Even tiny ways will do, which, in their gentleness and grace, are often greater than big ways.

So. How can we begin crafting that better paradigm?

I call it moving from an economic paradigm to a eudaimonic paradigm of human organization. It has new ends for organizations: five new goals that elevate and expand life, versus blindly maximizing income. And it has new means: design principles with which to build organizations that can accomplish those ends. Together, those ends and means make up a little framework that I call “eudaimonics”. It’s meant to help us build organizations that are better at creating wealth, well-being, and human possibility, not just maximizing income, because life itself is the true measure of the success any and every organization, from a family to a company to a city to a country to the world itself.

What does such a eudaimonic organization look like? Whether it’s a company, country, or city, it’s different in vision: it has a concrete, overarching goals to To do it, it’s different in structure: it probably has a Chief Eudaimonia Officer or the like. It’s different in strategy: it doesn’t just launch products and services, but focuses on the human outcomes those have, whether lives are flourishing and growing or not. And it’s different in management: it doesn’t just report, track, manage, identify, optimize profit against loss, economic indicators, but eudaimonic ones, that are about how much life it’s really giving back to you, me, our grandkids, and the planet.

Here’s another example of eudaimonics, at macro scale. The objectives and strategies and policies and values and and roles and titles and numbers and metrics and measures and reports and the rest of it — all of the software of human organization, from “profit” to “GDP” to “markets” to “value” to “wealth” to “vision” to “mission” to “work” to “jobs“ — that power our countries, cities, companies, corporations is going to have to be updated and rewritten to realize life.

So. A brief summary. Human organizations have become treadmills. But they should be gardens. In which lives flourish, grow, fruit, and flower. The great challenge of this age isn’t single-mindedly maximizing one-dimensional income as the sole end and purpose of human existence, but elevating and expanding life’s possibility. Whether mine, yours, our grandkids’ or our planet’s. That noble, beautiful, improbable quest for self-realization — eudaimonia — is the reason we’re all here, each and every one.

Remember me? There I was, happily dying. And then the fates did what fates do. Pulled the rug out from under me. I didn’t die. The old world did. And the new world isn’t yet born. We’re going to have to create it, give painful birth to it, drag it out of ourselves, kicking and screaming, with love and grace. Even those of us, like me, who thought they’d be content watching the sun set.

Hence, this little organization. You can think of it as a lab, consultancy, thinktank — what it really is is an invitation. So if you’d like to join me on this quest, consider all this yours.

Umair


(Here are three brief footnotes for nerds. I emphatically don’t mean “economics is bad!”. It’s not. It has a great deal to teach us. The problem is that it’s used backwards. Abstractions of reality are meant only to provide academic insight and theoretical validation. But we use economic ideas — theories and models — not to validate theories, as real world levers to fulfill them. See the difference? That’s like taking a bunch of monkeys who’ve survived the clinical trials of a wonder drug and…putting them in charge of a nation’s healthcare. Inquiry has been turned around to become a method of human organization. Thus, the economic paradigm of human organization shouldn’t be one at all — economics should be just one tiny way, among many, to see, explain, think about human behavior, not a mode of organizing it, especially not the only mode.

In a similar vein, there’s often a refrain of “things are getting better! They’re not that bad!”, meaning that extreme global poverty has been reduced. That’s true, but. Those gains have been concentrated in India and China, and while the old paradigm might have raised median incomes there from $1K to $5k, it can’t raise them from $5k to $50k. Not just because the planet doesn’t have the resources, though it doesn’t — but because those societies already face the same tensions the old paradigm has produced: inequality, extremism, dissatisfaction, and so on. In other words, the old paradigm is out of steam. Technically, we’d say that the social, civic, and human externalities of the economic paradigm are too high for the world to bear.

That also means paradigm change isn’t just about going from capitalism to socialism. Both those — and all the “isms” surrounding them — still often share exactly the same paradigmatic goal, the same sole end — maximizing immediate income, trickling down from bigger to smaller organizations. As a simple example, China’s nominally socialist — but it’s overarching social objective, is precisely the same as America’s — to maximize GDP. So paradigmatic change doesn’t just mean “capitalism versus socialism”. It doesn’t mean any ism, in fact. Not liberalism, conservatism, libertarianism, leftism. None of it. Paradigmatic change means something truer, deeper, more radical — changing the means and ends of human organization, the purposes to which our days, moment, ideas, relationships, careers, ambitions, dreams are devoted.)

US Census report shows increasing social inequality

Small median income gain offset by debt and living costs

By Eric London
15 September 2017

US Census data from 2016 released on Tuesday shows increasing social inequality amid a small gain in household income that is offset by a massive growth of personal debt and rising living costs.

The data tracks the ongoing redistribution of wealth from the working class to the wealthy as a result of the pro-Wall Street policies of both the Republican and Democratic parties. It substantiates the oligarchic character of the United States.

Social inequality

The Gini index, used to measure social inequality, with higher figures indicating a wider economic divide, rose slightly from 2015 (.479) to 2016 (.481). The 2016 figure, according to rankings in the CIA World Factbook, makes the US slightly more equal than Madagascar and less equal than Mexico.

In terms of aggregate income share, the shift from 2015 to 2016 is as follows:

Income share from 2015-2016. *Census data reported to one significant figure, meaning percent decline is not reflected in 2015 and 2016 share columns.

The growth in inequality is even starker when traced from 2007, the year before the Wall Street crisis.

The data reflects income and not wealth, thereby providing an incomplete and conservative indication of the scale of inequality. Even within the highest quintile, the income share increased only for the top 10 percent, and, in particular, the top 5 percent.

Income share from 2007-2016

Household income

The corporate media has portrayed the report as a sign of positive income growth, since it shows a slight rise in median income of 3.2 percent from 2015 to 2016.

But according to the Census data, the earnings of “full-time, year-round workers” remained stagnant. For men in this category, a total of 63.9 million people, earnings declined by 0.4 percent, from $51,859 in 2015 to $51,640 in 2016. For women in this category, 47.2 million people, there was a minor increase, 0.7 percent, from $41,257 in 2015 to $41,554 in 2016. In other words, families with 2 adults working full-time saw a paltry $78 increase in their yearly earnings from 2015 to 2016.

Claims of rising incomes mask the growth of inequality. The Census data shows that the household income of the 90th percentile (the 100th being the highest) was 12.53 times higher than the household income of the 10th percentile in 2016, up from 12.23 times higher in 2015 and 11.18 times higher in 2007. The degree to which income is concentrated in the richest 10 percent of the population is exemplified by the fact that the 5th percentile boasted a household income 3.82 times higher than the 50th percentile in 2016, up from 3.79 times in 2015 and 3.52 in 2007.

As Bloomberg News reported Wednesday, “Since 2007, average inflation-adjusted income has climbed more than 10 percent for households in the highest fifth of the earnings distribution, and it’s fallen 3.2 percent for the bottom quintile. Incomes of the top 5 percent jumped 12.8 percent over the period.”

For the working class, any income increase was transferred to the corporate elite in the form of rising debt payments and increasing living expenses, especially for health care.

According to figures from eHealth, a large private health exchange, average deductibles for families rose 5 percent from 2016 to 2017 (a year after the period covered by the Census report) and average individual premiums rose 22 percent over the same period.

The rising cost of student debt alone largely erases income increases seen by some young people. According to the Census, those aged 15 to 24 saw an income increase of 13.9 percent, from $36,564 in 2015 to $41,655 in 2016, while incomes for young people aged 25 to 34 rose 4.9 percent, from $58,091 to $60,932, nearly double the percentage increase for older age groups.

However, in 2016, student debt rose to an average of $30,000 per young person, up 4 percent from 2015, eliminating over 80 percent of the income rise for 25-34 year olds. For 15 to 24 year olds, the $4,000 increase in median income would hardly cover one sixth of the average debt payment, let alone make up for the fact that young people face a future in which they are unlikely to receive a pension, Social Security or Medicare.

Rising debt levels are not a phenomenon limited to young people. A Bloomberg report from August 10 notes that credit card defaults increased from the beginning of 2015—when roughly 2.5 percent of debt holders defaulted—to the end of 2016, when the total hit 3 percent. This figure subsequently climbed in 2017 to reach 3.49 percent.

Bloomberg notes: “After deleveraging in the aftermath of the last US recession, Americans have once again taken on record debt loads that risk holding back the world’s largest economy… Household debt outstanding–everything from mortgages to credit cards to car loans–reached $12.7 trillion in the first quarter [2017], surpassing the previous peak in 2008 before the effect of the housing market collapse took its toll, Federal Reserve Bank of New York data show.”

“For most Americans,” the report continues, “whose median household income, adjusted for inflation, is lower than it was at its peak in 1999, borrowing has been the answer to maintaining their standard of living. The increase in debt helps explain why the economy’s main source of fuel is providing less of a boost than in the past. Personal spending growth has averaged 2.4 percent since the recession ended in 2009, less than the 3 percent of the previous expansion and 4.3 percent from 1982-90.”

The Bloomberg report explains that income from wages minus household debt trended downward in 2015, meaning that debt is rising faster than wages, causing a loss of roughly $500 billion across the US economy in the space of just one year.

Poverty rate

Though the Census report shows that the poverty rate declined from 13.5 percent of households in 2015 to 12.7 percent in 2016, this figure is substantially higher than the 11.3 percent level that prevailed in 2000. In reality, individuals and families must make 2.5 to 3 times the official poverty rate of $12,000 for an individual, $15,500 for a married couple and $25,000 for a family of four just to make ends meet.

What the data really shows is that the poorest half of the country–over 150 million people–is in a desperate financial position, with the next poorest 40 percent facing constant financial strain and a declining share of the national income. In regard to poverty, the Census Bureau maintains figures that go up only to 200 percent of the official poverty level. The latest report shows that 95 million people—29.8 percent of the population—fall into this category. The share of those under the age of 18 in this category is much higher–39.1 percent.

This is the context for the drive by the Trump administration and both big business parties to slash corporate taxes, impose a health care “reform” that will increase costs for millions of people, and accelerate the transfer of wealth from the working class to the financial aristocracy.

WSWS

 

 

 

These Corporations Have the Biggest Influence on Climate Policy

ENVIRONMENT
Follow the money.

Photo Credit: InfluenceMap via EcoWatch screenshot

For better or worse, corporations have a major influence on climate change policy. Just look at Koch Industries, a multinational conglomerate owned by conservative billionaires Charles and David Koch that has contributed hundreds of millions to federal candidates and lobbying over the last 25 years.

The “Corporate Carbon Policy Footprint,” a new analysis from U.K. nonprofit InfluenceMap, now ranks Koch Industries as the company with the strongest opposition to the Paris climate agreement and most intensely lobbies against policies in line with the landmark global accord.

The InfluenceMap scoring system does not measure a company’s actual greenhouse gas emissions. Rather, it measures “the extent to which a corporation is supporting or obstructing the climate policy process.”

For the InfluenceMap report, researchers analyzed more than “30,000 pieces of evidence” on 250 global companies and 50 major trade associations on their lobbying records, advertising, public relations and sponsored research, according to Bloomberg.

The research group gave the Wichita-based company an “F” grade for its anti-climate actions:

“Koch Industries appears to be actively opposing almost all areas of climate legislation. In 2014 in the US, they were reportedly active in their opposition to a carbon tax, funding politicians and campaigns to oppose the tax. Similarly, in 2014 they appear to have opposed the U.S. EPA Clean Power Plan in consultation and through direct engagement with policy makers, and boasted about their success in blocking the US Cap and Trade Scheme in 2010. Additionally, they appear to be opposing measures to transition to a low carbon economy, advocating against renewable energy subsidies, and funding groups that have opposed energy efficiency standards, the repeal of fossil fuel subsidies and the need for action on climate change. They seem to be exceptionally active in opposing renewable energy standards across the U.S. Both the organization and its CEO, Charles Koch, appear to have questioned climate change science, and have reportedly funded climate denial. Senior executives are active in both the National Association of Manufacturers and ALEC, which also appear to be resisting climate change related regulations and policies.”

On the opposite end of the spectrum, Silicon Valley tech giant Apple was ranked highest on the list and has an A+ for its support of climate change action and its positive engagement with a number of climate change policy areas.

Here are the report’s key findings:

  • 35 of the 50 most influential are actively lobbying against climate policy. They include companies in the fossil fuel value chain (ExxonMobil, Valero Energy, Chevron), energy intensive companies (BASF, ArcelorMittal, Bayer, Dow Chemical and Solvay) and electric utilities with large amounts of coal generating capacity (Southern Company, Duke Energy and American Electric Power).
  • Also in this group of 35 influential companies holding back climate policy are four powerful automotive manufacturers (Fiat Chrysler, Ford, BMW and Daimler). The research found the companies lobbying to delay or dilute efficiency and CO2 emissions standards and procedures both in Europe and North America. Depending on region, passenger vehicle emissions account for 12% or more of all greenhouse gas emissions.
  • On the other side, 15 of the 50 most influential are pushing for an ambitious climate policy agenda, favoring renewable power and electric vehicles. They include signatories to the RE100 initiative committing to buying 100% renewable power (Apple, Ikea, Unilever, Coca Cola and Nestle) as well as power sector companies (SSE, Enel, EDF, Iberdrola and National Grid) who are shifting their business models towards low carbon electricity generation.

“The data shows the climate policy agenda, in terms of corporate influencing, is being driven by a small number of massive global corporations,” Dylan Tanner, InfluenceMap executive director, said in a statement. “It also shows a group of powerful of companies in the tech, consumer goods and utilities sectors increasingly pushing for policy to implement the Paris Agreement.”

InfluenceMap also ranked “influencers” or powerful trade associations that actively lobby against climate policies. A number of trade associations received an “F” grade, but here are the bottom five: U.S. Chamber of Commerce; American Petroleum Institute; American Coalition for Clean Coal Electricity; National Mining Association; and the American Legislative Exchange Council.

Check out the full list here.

 

http://www.alternet.org/environment/these-corporations-have-biggest-influence-climate-policy?akid=16078.265072.-6w19I&rd=1&src=newsletter1082452&t=32