Rising death rate for middle-aged US workers driven by “deaths of despair”

By Niles Niemuth
24 March 2017

The latest research on rising mortality rates by Princeton University economists Anne Case and Angus Deaton, presented this week at the Brookings Institution, shines new light on the depth of the social crisis which has devastated the American working class since the year 2000.

Building off their initial 2015 study which documented a sharp rise in the mortality rate for white, middle-aged working-class Americans, Case and Deaton conclude that the rising death rate is being driven by what they define as “deaths of despair,” those due to drug overdoses, complications from alcohol and suicide. The mortality rate for these causes grew by half a percent annually between 1999 and 2013.

During the course of the 20th century, the annual mortality rate for all middle-aged whites fell from 1,400 per 100,000 to 400 per 100,000. The US experienced a 100-year period of almost uninterrupted improvements in death rates and life expectancy. In this context Case and Deaton identify the recent rise in middle-aged mortality as “extraordinary and unanticipated.”

Midlife deaths of despair across countries

The epidemic of deaths from drugs, alcohol and suicide was initially seen in the American Southwest in the year 2000 but soon spread to the Appalachian region and Florida and is now nationwide, affecting rural and urban areas alike.

While every region of the US has seen an increase in the rate of “deaths of despair” among middle-aged whites over the last 15 years, the hardest-hit states are in the South (Alabama, Kentucky, Tennessee and Mississippi). Large urban and suburban areas have been the least affected, rural areas the most.

The mortality rate for working-class whites was also pushed up by a slowing and then stagnation of the decline in deaths from heart disease for white Americans between 2009 and 2015. On top of this the decline in mortality from lung cancer, caused by smoking and occupational hazards, slowed for white men 45-54 between 2000 and 2014, while mortality actually increased for white women 45-49 between 2000 and 2010.

Case and Deaton found that midlife mortality for middle-aged, working-class, white Americans surpassed the midlife mortality for all African Americans for the first time in 2008, and by 2015 mortality for working-class whites was 30 percent higher than for blacks. More significantly, their data shows that the gap in mortality between whites and blacks in the working class has all but disappeared. This is the outcome of a general decline in mortality for blacks and a rapid increase for whites over the last decade-and-a-half, though in recent years the mortality rate for working-class blacks has begun rising along with that of whites.

Case and Deaton’s report is supported by the most recent Centers for Disease Control (CDC) data concerning suicides and overdoses.

The CDC found that after declining between 1986 and 1999 the US suicide rate rose gradually between 2000 and 2015, with the rate growing most rapidly in smaller cities and rural areas after the 2007-2008 economic collapse. Whites and Native Americans had the highest suicide rates, with both groups seeing noticeable increases. All told there were 600,000 suicides in the US between 1999 and 2015—the equivalent of the loss of a major city, more than the total estimated deaths in the Syrian civil war.

Another recent CDC report found that overdoses from all drugs has more than doubled since 1999, with middle-aged Americans having the highest rate of overdoses. The overdose rate for whites has more than tripled since 1999 and is now more than double the rate for blacks and Hispanics combined. Nearly 13,000 people died from heroin overdoses alone in 2015, more than four times the number of deaths recorded in 2010.

Midlife mortality by all causes in the US

The data collected and analyzed by Case and Deaton reflects a deeply sick society, the outcome of a social counterrevolution which has accelerated since the 2008 crash.

Their research makes clear that the American working class, regardless of race, is being made to pay the price for the failure of capitalism, exposing the lie repeated by pseudo-left groups and the practitioners of identity politics about the “privileged white working class.”

In the period reviewed by Case and Deaton, the Democratic Party completed its repudiation of a political program which in any way addressed the needs or interests of the working class, in favor of middle-class identity politics. This found its culmination in the election of Barack Obama, the first black president, who funneled trillions of dollars into Wall Street and expanded the wars in the Middle East. In the last year of his presidency, which had seen such catastrophes as the lead poisoning of Flint and the BP oil spill, and seven years of wage stagnation, Obama asserted that things were “pretty darn great” in America.

The immiseration of the American working class has also been made possible by betrayals of the trade unions which over the last four decades have collaborated with and integrated themselves ever more closely with the corporations in order to shutter factories, eliminate jobs and enforce wage and benefit cuts.

The period in which the American working class has been subjected to unrelenting attacks has seen the growth of historically unprecedented levels of social inequality. The resources of society and the wealth created by the working class have been plundered and funneled into the hands of an ever wealthier financial aristocracy. This process will only accelerate under Trump.

While it is claimed there is “no money” to pay for decent wages or social services in the US, the country claims eight of the world’s 10 wealthiest billionaires and spends more than the next seven countries combined on its military. The health care overhaul and budget cuts being proposed by the Trump administration are guaranteed to accelerate the social counterrevolution.

In this regard it is striking to note the overlap between the areas of the country particularly devastated by “deaths of despair” in the period examined by Case and Deaton and those with a large vote for Donald Trump in the 2016 election. The anti-working class policies pursued in the Obama years paved the way for Trump.

The residents of these areas, either rural or devastated by years of factory closures, voted for Trump not out of racial animus—an assertion often made by the mainstream media and pseudo-left—but as a cry of desperation, incipient anger and complete disgust with the political establishment.

These people have been at the frontlines of the onslaught against the working class, facilitated by Democrats and Republicans alike. As far as Trump identified himself as an outsider, opposed to the political establishment which facilitated the plunder of the working class, he drew significant support. These same working people are quickly being disabused of any illusions they may have held in the billionaire businessman.

The fundamental question raised by Case and Deaton’s research is the struggle of the working class against the capitalist system and for socialism. Social inequality has never been higher and the rich have never been richer. The working class is the only force which can reverse this counterrevolution. Workers must turn to socialism and fight to build a mass independent movement which will fight for political power and take control of the wealth plundered from them, putting it to use for the common good.

 

WSWS

The Culture of Cruelty in Trump’s America

Posted on Mar 22, 2017

By Henry A. Giroux / Truthout

For the last 40 years, the United States has pursued a ruthless form of neoliberalism that has stripped economic activity from ethical considerations and social costs. One consequence has been the emergence of a culture of cruelty in which the financial elite produce inhuman policies that treat the most vulnerable with contempt, relegating them to zones of social abandonment and forcing them to inhabit a society increasingly indifferent to human suffering. Under the Trump administration, the repressive state and market apparatuses that produced a culture of cruelty in the 19th century have returned with a vengeance, producing new levels of harsh aggression and extreme violence in US society. A culture of cruelty has become the mood of our times—a spectral lack of compassion that hovers over the ruins of democracy.

While there is much talk about the United States tipping over into authoritarianism under the Trump administration, there are few analyses that examine how a culture of cruelty has accompanied this political transition, and the role that culture plays in legitimating a massive degree of powerlessness and human suffering. The culture of cruelty has a long tradition in this country, mostly inhabiting a ghostly presence that is often denied or downplayed in historical accounts. What is new since the 1980s—and especially evident under Donald Trump’s presidency—is that the culture of cruelty has taken on a sharper edge as it has moved to the center of political power, adopting an unapologetic embrace of nativism, xenophobia and white nationalist ideology, as well as an in-your-face form of racist demagoguery. Evidence of such cruelty has long been visible in earlier calls by Republicans to force poor children who get free school lunches to work for their meals. Such policies are particularly cruel at a time when nearly “half of all children live near close to the poverty line.” Other instances include moving people from welfare to workfare without offering training programs or child care, and the cutting of children’s food stamp benefits for 16 million children in 2014.  Another recent example of this culture of cruelty was Rep. Steve King (R-Iowa) tweeting his support for Geert Wilders, a notorious white supremacist and Islamophobic Dutch politician.

Focusing on a culture of cruelty as one register of authoritarianism allows us to more deeply understand how bodies and minds are violated and human lives destroyed. It helps us to acknowledge that violence is not an abstraction, but is visceral and, as Brad Evans observes, “should never be studied in an objective and unimpassioned way. It points to a politics of the visceral that cannot be divorced from our ethical and political concerns.” For instance, it highlights how Trump’s proposed budget cuts would reduce funding for programs that provide education, legal assistance and training for thousands of workers in high-hazard industries. As Judy Conti, a federal advocacy coordinator [at the National Employment Law Project] points out, these cuts would result in “more illness, injury and death on the job.”

Rather than provide a display of moral outrage, interrogating a culture of cruelty offers critics a political and moral lens for thinking through the convergence of power, politics and everyday life. It also offers the promise of unveiling the way in which a nation demoralizes itself by adopting the position that it has no duty to provide safety nets for its citizens or care for their well-being, especially in a time of misfortune. Politically, it highlights how structures of domination bear down on individual bodies, needs, emotions and self-esteem, and how such constraints function to keep people in a state of existential crisis, if not outright despair. Ethically the concept makes visible how unjust a society has become. It helps us think through how life and death converge in ways that fundamentally transform how we understand and imagine the act of living—if not simply surviving—in a society that has lost its moral bearing and sense of social responsibility. Within the last 40 years, a harsh market fundamentalism has deregulated financial capital, imposed misery and humiliation on the poor through welfare cuts, and ushered in a new style of authoritarianism that preys upon and punishes the most vulnerable Americans.

The culture of cruelty has become a primary register of the loss of democracy in the United States. The disintegration of democratic commitments offers a perverse index of a country governed by the rich, big corporations and rapacious banks through a consolidating regime of punishment. It also reinforces the workings of a corporate-driven culture whose airwaves are filled with hate, endless spectacles of violence and an ongoing media assault on young people, the poor, Muslims and undocumented immigrants. Vast numbers of individuals are now considered disposable and are relegated to zones of social and moral abandonment. In the current climate, violence seeps into everyday life while engulfing a carceral system that embraces the death penalty and produces conditions of incarceration that house many prisoners in solitary confinement—a practice medical professionals consider one of the worse forms of torture.

In addition, Americans live in a distinctive historical moment in which the most vital safety nets, social provisions, welfare policies and health care reforms are being undermined or are under threat of elimination by right-wing ideologues in the Trump administration. For instance, Trump’s 2017 budgetary proposals, many of which were drafted by the hyperconservative Heritage Foundation, will create a degree of imposed hardship and misery that defies any sense of human decency and moral responsibility.

Public policy analyst Robert Reich argues that “the theme that unites all of Trump’s [budget] initiatives so far is their unnecessary cruelty.” Reich writes:

His new budget comes down especially hard on the poor—imposing unprecedented cuts in low-income housing, job training, food assistance, legal services, help to distressed rural communities, nutrition for new mothers and their infants, funds to keep poor families warm, even “meals on wheels.” These cuts come at a time when more American families are in poverty than ever before, including 1 in 5 children. Why is Trump doing this? To pay for the biggest hike in military spending since the 1980s. Yet the U.S. already spends more on its military than the next 7 biggest military budgets put together. His plan to repeal and “replace” the Affordable Care Act will cause 14 million Americans to lose their health insurance next year, and 24 million by 2026. Why is Trump doing this? To bestow $600 billion in tax breaks over the decade to wealthy Americans. This windfall comes at a time when the rich have accumulated more wealth than at any time in the nation’s history.

This is a demolition budget that would inflict unprecedented cruelty, misery and hardship on millions of citizens and residents. Trump’s populist rhetoric collapses under the weight of his efforts to make life even worse for the rural poor, who would have $2.6 billion cut from infrastructure investments largely used for water and sewage improvements as well as federal funds used to provide assistance so they can heat their homes. Roughly $6 billion would be cut from a housing budget that benefits 4.5 million low-income households. Other programs on the cutting block include funds to support Habitat for Humanity, the homeless, energy assistance to the poor, legal aid and a number of antipoverty programs. Trump’s mode of governance is no longer modeled on “The Apprentice.” It now takes its cues from “The Walking Dead.”

If Congress embraces Trump’s proposal, poor students would be budgeted out of access to higher education as a result of a $3.9 billion cut from the federal Pell grant program, which provides tuition assistance for low-income students entering college. Federal funds for public schools would be redistributed to privately run charter schools, while vouchers would be available for religious schools. Medical research would suffer and people would die because of the proposed $6 billion cut to the National Institutes of Health.

Trump has also called for the elimination of the National Endowment for the Arts, the National Endowment for the Humanities, the Corporation for Public Broadcasting and the Institute of Museum and Library Services, making clear that his contempt for education, science and the arts is part of an aggressive project to eliminate those institutions and public spheres that extend the capacity of people to be imaginative, think critically and be well-informed.

The $54 billion that Trump seeks to remove from the budgets of 19 agencies designed to help the poor, students, public education, academic research and the arts would instead be used to increase the military budget and build a wall along the Mexican border. The culture of cruelty is on full display here as millions would suffer for the lack of loans, federal aid and basic resources. The winners would be the Departments of Defense, Homeland Security, the private prison industry and the institutions and personnel needed to expand the police state. What Trump has provided in this budget proposal is a blueprint for eliminating the remnants of the welfare state while transforming American society into a “war-obsessed, survival-of-the fittest dystopia.”

The United States is now on a war footing and has launched a war against undocumented immigrants, Muslims, people of color, young people, the elderly, public education, science, democracy and the planet itself, to say nothing of the provocations unfolding on the world stage.  The moral obscenity and reactionary politics that inform Trump’s budget were summed up by Bernie Sanders: “At a time of massive income and wealth inequality, when 43 million Americans are living in poverty and half of older Americans have no retirement savings, we should not slash programs that senior citizens, children and working people rely on in order to provide a massive increase in spending to the military industrial complex. Trump’s priorities are exactly the opposite of where we should be heading as a nation.”

As more and more people find themselves living in a society in which the quality of life is measured through market-based metrics, such as cost-benefit analyses, it becomes difficult for the public to acknowledge or even understand the cost in human misery and everyday hardship that an increasing number of people have to endure.

A culture of cruelty highlights both how systemic injustices are lived and experienced, and how iniquitous relations of power turn the “American dream” into a dystopian nightmare in which millions of individuals and families are struggling to merely survive. This society has robbed them of a decent life, dignity and hope. I want to pose the crucial question of what a culture of cruelty looks like under a neofascist regime, and in doing so, highlight what I believe are some of its most crucial elements, all of which must be recognized if they are to be open to both criticism and resistance.

First, language is emptied of any sense of ethics and responsibility and begins to operate in the service of violence. This becomes evident as social provisions are cut for programs that help poor people, elderly people, impoverished children and people living with disabilities. This is also evident in the Trump administration’s call to scale back Medicaid and affordable, quality health insurance for millions of Americans.

Second, a survival-of-the-fittest discourse provides a breeding ground for the production of hypermasculine behaviors and hypercompetitiveness, both of which function to create a predatory culture that replaces compassion, sharing and a concern for the other. Under such circumstances, unbridled individualism and competition work to weaken democracy.

Third, references to truth and real consequences are dismissed, and facts give way to “alternative realities” where the distinction between informed assertions and falsehoods disappears. This politics of fabrication is on full display as the Trump administration narrates itself and its relationship to others and the larger world through a fog of misrepresentations and willful ignorance. Even worse, the act of state-sanctioned lying is coupled with the assertion that any critical media outlets and journalists who attempt to hold power accountable are producing “fake news.” Official lying is part of the administration’s infrastructure: The more authority figures lie the less they have to be taken seriously.

Fourth, in a culture of cruelty, the discourse of disposability extends to an increasing number of groups that are considered superfluous, redundant, excess or dangerous. In this discourse, some lives are valued and others are not. In the current moment, undocumented immigrants, Muslim refugees and Black people are targeted as potential criminals, terrorists or racial “others” who threaten the notion of a white Christian nation. Underlying the discourse of disposability is the reemerging prominence of overt white supremacy, as evidenced by an administration that has appointed white nationalists to the highest levers of power in the government and has issued a racist appeal to “law and order.” The ongoing rise of hate crimes should be no surprise in a society that has been unabashedly subjected by Trump and his cohorts to the language of hate, anti-Semitism, sexism and racism. Cultures of cruelty slip easily into both the discourse of racial cleansing and the politics of disposability.

Fifth, ignorance becomes glamorized, enforced through the use of the language of emotion, humiliation and eventually through the machinery of government deception. For example, Donald Trump once stated that he loved “uneducated people.” This did not indicate, of course, a commitment to serve people without a college education—a group that will be particularly disadvantaged under his administration. Instead, it signaled a deep-seated anti-intellectualism and a fear of critical thought itself, as well as the institutions that promote it. Limiting the public’s knowledge now becomes a precondition for cruelty.

Sixth, any form of dependency in the interest of justice and care for the “other” is viewed as a form of weakness, and becomes the object of scorn and disdain. In a culture of cruelty, it is crucial to replace shared values and bonds of trust with the bonds of fear. For the caste of warriors that make up the Trump administration, politics embraces what might be called neoliberalism on steroids, one in which the bonds of solidarity rooted in compassion and underlying the welfare state are assumed to weaken national character by draining resources away from national security and placing too large a tax burden on the rich. In this logic, solidarity equates with dependency, a weak moral character, and is dismissed as anaemic, unreliable and a poor substitute for living in a society that celebrates untrammeled competition, individual responsibility and an all-embracing individualism.

Seventh, cruelty thrives on the language of borders and walls. It replaces the discourse of bridges, generosity and compassion with a politics of divisiveness, alienation, inadequacy and fear. Trump’s call for building a wall on the Mexican border, his endless disparaging of individuals and groups on the basis of their gender, race, religion and ethnicity, and his view of a world composed of the deadly binary of “friends” and “enemies” echo the culture of a past that lost its ethical and political moorings and ended up combining the metrics of efficiency with the building of concentration camps.

Eighth, all cultures of cruelty view violence as a sacred means for addressing social problems and mediating relationships; hence, the criminalization of homelessness, poverty, mental illness, drug addiction, surviving domestic violence, reproductive choice and more.  The centrality of oppressive violence in the United States is not new, of course; it is entrenched in the country’s origins. Under Trump this violence has been embraced, openly and without apology, as an organizing principle of society. This acceleration of the reality and spectacle of violence under the Trump administration is evident, in part, in his call for increasing an already-inflated military budget by $54 billion. It is also evident in his efforts to create multiple zones of social abandonment and social death for the most vulnerable in society.

Ninth, cultures of cruelty despise democracy and work incessantly to make the word disappear from officially mandated state language. One example of this took place when Trump opted not to utter the word democracy in either his inaugural address or in his first speech to Congress. Trump’s hatred of democracy and the formative cultures that sustain it was on full display when he and his top aides referred to the critical media as the enemy of the American people and as an “opposition party.” A free press is fundamental to a society that takes seriously the idea that no democracy can exist without informed citizens. Trump has turned this rule on its head, displaying a disdain not only for a press willing to pursue the truth and hold politicians and corporations accountable, but also for those public spheres and institutions that make such a press possible. Under these circumstances, it is important to remember Hannah Arendt’s warning: “What makes it possible for a totalitarian or any other dictatorship to rule is that people are not informed … and a people that no longer can believe anything cannot make up its mind. It is deprived not only of its capacity to act but also its capacity to think and to judge.”

Tenth, all fascist regimes disparage, dismantle and destroy institutions, such as public and higher education and other public spheres where people can learn how to think critically and act responsibly. Evidence of an act of war against public spheres that are critical, self-reflective and concerned with the social good is visible in the appointment of billionaires, generals and ideological fundamentalists to cabinet positions running public agencies that many of them have vowed to destroy. What does it mean when an individual, such as Betsy DeVos, is picked to head the Department of Education even though she has worked endlessly in the past to destroy public education? How else to explain Trump appointing Scott Pruitt to head the Environmental Protection Agency, even though he does not believe that climate change is affected by human-produced carbon dioxide emissions and has spent most of his career actively opposing the authority of the EPA? At stake here is more than a culture of incompetency. This is a willful assault on public goods and the common good.

Eleventh, cultures of cruelty thrive when shared fears replace shared responsibilities. Under such conditions, an ever-expanding number of people are reduced to the status of a potential “terrorist” or “criminal,” watched constantly, and humiliated under the watchful eye of a surveillance state that inhabits practically every public and private space.

Twelfth, cultures of cruelty dispose of all vestiges of the welfare state, forcing millions to fend for themselves. Loneliness, powerlessness and uncertainty—fueled by the collapse of the public into the private—create the conditions for viewing those who receive much needed social provisions as cheaters, moochers or much worse. Under the Republican Party extremists in power, the welfare state is the enemy of the free market and is viewed as a drain on the coffers of the rich. There are no public rights in this discourse, only entitlements for the privileged, and rhetoric that promotes the moral superiority and unimpeachable character of the wealthy. The viciousness of these attacks is driven by the absolute idolatry of power of wealth, strength and unaccountable military might.

Thirteenth, massive inequalities in power, wealth and income mean time will become a burden for most Americans, who will be struggling merely to make ends meet and survive. Cruelty thrives in a society in which there seem to be only individual problems, as opposed to socially-produced problems, and it is hard to do the work of uniting against socially-produced problems under oppressive time constraints. Under such circumstances, solidarity is difficult to practice, which makes it easier for the ruling elite to use their power to engage in the relentless process of asset-stripping and the stripping of human dignity. Authoritarian regimes feed off the loyalty of those who benefit from the concentration of wealth, power and income as well as those who live in stultifying ignorance of their own oppression. Under global capitalism, the ultrarich are celebrated as the new heroes of late modernity, while their wealth and power are showcased as a measure of their innate skills, knowledge and superiority. Such spectacles function to infantilize both the general public and politics itself.

Fourteenth, under the Trump administration, the exercise of cruelty is emboldened through the stultifying vocabulary of ultranationalism, militarism and American exceptionalism that will be used to fuel further wars abroad and at home. Militarism and exceptionalism constitute the petri dish for a kind of punishment creep, in which “law and order” becomes code for the continued rise of the punishing state and the expansion of the prison-industrial complex. It also serves to legitimate a war culture that surrounds the world with military bases and promotes “democracy” through a war machine. It turns already-oppressive local police departments into SWAT teams and impoverished cities into war zones. In such a culture of cruelty, language is emptied of any meaning, freedom evaporates, human misery proliferates, and the distinction between the truth and lies disappears and the governance collapses into a sordid species of lawlessness, emboldening random acts of vigilantism and violence.

Fifteenth, mainstream media outlets are now a subsidiary of corporate control. Almost all of the dominant cultural apparatuses extending from print, audio and screen cultures are controlled by a handful of corporations. The concentration of the mainstream media in few hands constitutes a disimagination machine that wages a pedagogical war on almost any critical notion of politics that seeks to produce the conditions needed to enable more people to think and act critically. The overriding purpose of the corporate-controlled media is to drive audiences to advertisers, increase ratings and profits, legitimate the toxic spectacles and values of casino capitalism, and reproduce a toxic pedagogical fog that depoliticizes and infantilizes. Lost here are those public spaces in which the civic and radical imagination enables individuals to identify the larger historical, social, political and economic forces that bear down on their lives. The rules of commerce now dictate the meaning of what it means to be educated. Yet, spaces that promote a social imaginary and civic literacy are fundamental to a democracy if the young and old alike are to develop the knowledge, skills and values central to democratic forms of education, engagement and agency.

Underlying this form of neoliberal authoritarianism and its attendant culture of cruelty is a powerfully oppressive ideology that insists that the only unit of agency that matters is the isolated individual. Hence, mutual trust and shared visions of equality, freedom and justice give way to fears and self-blame reinforced by the neoliberal notion that individuals are solely responsible for their political, economic and social misfortunes. Consequently, a hardening of the culture is buttressed by the force of state-sanctioned cultural apparatuses that enshrine privatization in the discourse of self-reliance, unchecked self-interest, untrammeled individualism and deep distrust of anything remotely called the common good. Once again, freedom of choice becomes code for defining responsibility solely as an individual task, reinforced by a shameful appeal to character.

Many liberal critics and progressives argue that choice absent constraints feeds the rise of Ayn Rand’s ideology of rabid individualism and unchecked greed. But they are only partly right. What they miss in this neofascist moment is that the systemic cruelty and moral irresponsibility at the heart of neoliberalism make Ayn Rand’s vicious framework look tame. Rand’s world has been surpassed by a ruling class of financial elites that embody not the old-style greed of Gordon Gekko in the film Wall Street, but the inhumane and destructive avarice of Patrick Bateman in American Psycho. The notion that saving money by reducing the taxes of the rich justifies eliminating health care for 24 million people is just one example of how this culture of cruelty and hardening of the culture will play out.

Under the Trump administration, a growing element of scorn is developing toward the increasing number of human beings caught in the web of oppression, marginalization, misfortune, suffering and deprivation. This scorn is fueled by a right-wing spin machine that endlessly spews out a toxic rhetoric in which all Muslims are defined as “jihadists;” the homeless are cast as “lazy” rather than as victims of oppressive structures, failed institutions and misfortune; Black people are cast as “criminals” and subjected en masse to the destructive criminal punishment system; and the public sphere is portrayed as largely for white people.

The culture of hardness and cruelty is not new to American society, but the current administration aims to deploy it in ways that sap the strength of social relations, moral compassion and collective action, offering in their place a mode of governance that promotes a pageant of suffering and violence. There will, no doubt, be an acceleration of acts of violence under the Trump administration, and the conditions for eliminating this new stage of state violence will mean not only understanding the roots of neofascism in the United States, but also eliminating the economic, political and cultural forces that have produced it. Addressing those forces means more than getting rid of Trump. We must eliminate a more pervasive irrationality in which democracy is equated with unbridled capitalism—a system driven almost exclusively by financial interests and beholden to two political parties that are hardwired to produce and reproduce neoliberal violence.

http://www.truthdig.com/report/item/the_culture_of_cruelty_in_trumps_america_20170322

A Last Chance for Resistance

Posted on Mar 19, 2017

By Chris Hedges

  President Trump exits Air Force One at Andrews Air Force Base on Sunday, following a weekend trip to Florida. (Jose Luis Magana / AP)

The crawl toward despotism within a failed democracy is always incremental. No regime planning to utterly extinguish civil liberties advertises its intentions in advance. It pays lip service to liberty and justice while obliterating the institutions and laws that make them possible. Its opponents, including those within the establishment, make sporadic attempts to resist, but week by week, month by month, the despot and his reactionary allies methodically consolidate power. Those inside the machinery of government and the courts who assert the rule of law are purged. Critics, including the press, are attacked, ridiculed and silenced. The state is reconfigured until the edifice of tyranny is unassailable.

Alexander Solzhenitsyn in “The Gulag Archipelago” noted that the consolidation of Soviet tyranny “was stretched out over many years because it was of primary importance that it be stealthy and unnoticed.” He called the process “a grandiose silent game of solitaire, whose rules were totally incomprehensible to its contemporaries, and whose outlines we can appreciate only now.”

Czeslaw Milosz in “The Captive Mind” also chronicles the incremental expansion of tyranny, noting that it steadily progresses until intellectuals are not only forced to repeat the regime’s self-praising slogans but to advance its absurdist dogmas. Few ever see the tyranny coming. Those who do and speak out are treated by the authorities, and often the wider society, as alarmists or traitors.

The current administration’s budget proposes to give the war industry, the domestic policing agencies, the fossil fuel industry, Wall Street, billionaires and the national security and surveillance agencies more than they could have imagined possible before the election. These forces, as in all fascist states, will be the pillars of the Trump regime. They will tolerate Donald Trump’s idiocy, ineptitude and unbridled narcissism in exchange for increased profits and power. Despots are often buffoons. Appealing to their vanity and ego is an effective form of manipulation. Skilled sycophants can play despots like musical instruments for personal advancement.

Trump, like all despots, has no real ideology. His crusade against Wall Street, including Goldman Sachs, and the billionaire class during the presidential election campaign vanished the moment he took office. He has appointed five former Goldman Sachs employees to high posts in his administration. His budget will bleed the poor, the working class and the middle class and swell the bank accounts of the oligarchs. He is calling for abolishing the Corporation for Public Broadcasting and the National Endowment for the Arts and the cutting of programs that provide legal service to low-income people and grants to libraries and museums. If Trump’s budget is approved by Congress, there will not even be a pretense of civil society. Trump and his family will profit from his presidency. Corporations will profit from his presidency. Wall Street will profit from his presidency. And the people will be made to pay.

Despots demand absolute loyalty. This is why they place family members in the inner circles. The Romanian dictator Nicolae Ceausescu, whose vanity rivaled that of Trump, and Iraqi strongman Saddam Hussein filled their governments with their children, siblings, nephews, nieces and in-laws and rounded out their inner courts with racists, opportunists and thugs of the kind that now populate the White House.

“President Trump’s point man on Israeli-Palestinian negotiations is a longtime Trump Organization lawyer with no government or diplomatic experience,” reads the opening paragraph of a New York Times article headlined “Prerequisite for Key White House Posts: Loyalty, Not Experience.” “His liaison to African-American leaders is a former reality-TV villain with a penchant for résumé inflation. And his Oval Office gatekeeper is a bullet-headed former New York City cop best known for smacking a protester on the head.”

Despots distrust diplomats. Diplomats, often multilingual and conversant with other cultures and societies, deal in nuances and ambiguities that are beyond the grasp of the despot. Diplomats understand that other nations have legitimate national interests that inevitably clash with the interests of one’s own country. They do not embrace force as the primary language of communication. They are trained to carry out negotiations, even with the enemy, and engage in compromise. Despots, however, live in a binary universe of their own creation. They rapidly dismantle the diplomatic corps when they take power for the same reason they attack intellectuals and artists.

Trump’s proposed cut of nearly 29 percent to the State Department’s budget, potentially eliminating thousands of jobs, is part of the shift away from diplomacy to an exclusive reliance on violence or the threat of violence. The militarization of the diplomatic corps, with the Central Intelligence Agency and military intelligence operatives often taking over embassies, especially in conflict zones, began long before Trump took office. But Trump will deal the coup de grâce to the diplomatic corps. Despots replace diplomats with sycophants with no diplomatic experience, such as Secretary of State Rex Tillerson, who promise to impose the despot’s will on the rest of the world.

The dismantling of a diplomatic corps has dangerous consequences. It leaves a country blind and prone to wars and conflicts that could be avoided. Leon Trotsky called Josef Stalin’s foreign minister, Vyacheslav Molotov, who negotiated the disastrous 1939 Nazi-Soviet nonaggression pact that left the Soviet Union unprepared for German invasion, “mediocrity personified.” The other signatory of the pact, Joachim von Ribbentrop, was a former champagne salesman. Ribbentrop, as Molotov did with Stalin, parroted back to Adolf Hitler the leader’s conspiratorial worldview. Ribbentrop, again like Molotov with Stalin, knew that Hitler always favored the most extreme option. Molotov and Ribbentrop unfailingly advocated radical and violent solutions to any problem, endearing themselves to their bosses as men of unflinching resolve. This is what makes Steve Bannon so appealing to Trump—he will always call for Armageddon.

There are three institutions tasked in a functioning democracy with protecting the truth and keeping national discourse rooted in verifiable fact—the courts, the press and universities. Despots must control these three to prevent them from exposing their lies and restricting their power. Trump has not only attacked the courts but has also begun purges of the judiciary with his mass firing of U.S. attorneys. The Trump White House plans to fill 124 judgeships—including 19 vacancies on federal appeals courts—with corporatist lawyers such as Supreme Court nominee Neil Gorsuch who are endorsed by the reactionary Federalist Society. By the time Trump’s four-year term is up, Federalist Society judges could be in as many as half of the country’s appellate seats.

Trump has continued to attempt to discredit the press. During his rally in Nashville, Tenn., on Wednesday, he told the crowd, “Some of the fake news said I don’t think Donald Trump wants to build the wall. Can you imagine if I said we’re not going to build a wall? Fake news. Fake, fake news. Fake news, folks. A lot of fake.” He went on to say in an apparent reference to the reporters covering the rally, “They’re bad people.”

The attacks on universities, which will be accelerated, are on display in the budget proposal. The Department of Health and Human Services, the National Science Foundation, NASA, the Department of Education, the Commerce Department, the National Institutes of Health, the Energy Department and the Department of Veterans Affairs all give grants and research money to universities. Colorado State University, for example, gets about 70 percent, or $232 million, of its research budget from federal sources. In February, Trump suggested he might attempt to cut federal funding for universities such as UC Berkeley. His comment was made after a riot at the California school forced the cancellation of a speech there by the far-right ideologue Milo Yiannopoulos, who has called Trump “Daddy.” A university will of course be able to get corporate funding for research if it casts doubt on the importance of climate change or does research that can be used to swell corporate profits or promote other business interests. Scientific study into our ecocide and the dangers from chemicals, toxins and pollutants released by corporations into the atmosphere will be thwarted. And the withering of humanities programs, already suffering in many universities, will worsen.

It will be increasingly difficult to carry out mass protests and civil disobedience. Repression will become steadily more overt and severe. Dissent will be equated with terrorism. We must use the space before it is shut. This is a race against time. The forces of despotism seek to keep us complacent and pacified with the false hope that mechanisms within the system will moderate Trump or remove him through impeachment, or that the looming tyranny will never be actualized. There is an emotional incapacity among any population being herded toward despotism or war to grasp what is happening. The victims cannot believe that the descent into barbarity is real, that the relative security and sanity of the past are about to be obliterated. They fail to see that once rights become privileges, once any segment of a society is excluded from the law, rights can instantly be revoked for everyone.

There is a hierarchy to oppression. It begins with the most vulnerable—undocumented workers, Muslims, poor people of color. It works upward. It is a long row of candles that one by one are extinguished. If we wait to resist, as the poet C.P. Cavafy wrote, the “dark line gets longer” and “the snuffed-out candles proliferate.”

http://www.truthdig.com/report/item/a_last_chance_for_resistance_20170319

US health care debate: A bipartisan drive to lower life expectancy

16 March 2017

The new overhaul in the US health care system that is being prepared is a highpoint in a war against the working class in the United States. The debate in Washington and the media obscures the basic motivation guiding both big business parties: to restrict access to affordable health care and sharply reduce the life expectancy of American workers.

The divisions between the Democrats and Republicans are over secondary and tactical questions. Far from “repealing and replacing” Obamacare, the Republican proposal builds on its basic framework while driving up the number of uninsured workers, making health care unaffordable for older, lower- and middle-income workers, and accelerating the destruction of Medicaid and Medicare.

The aim is to free up resources for a massive increase in military spending, while funneling even more money to the stock market and the financial aristocracy. It is a continuation of a decades-long social counterrevolution, pursued regardless which party controlled the White House and Congress.

According to the Congressional Budget Office report released Monday, 21 million Americans will lose coverage by 2020, and 24 million by 2026. How many of these people will die as a consequence?

Under the Republican House plan, a 64-year-old worker earning $26,500 will see his or her premium increase from $1,700 to $14,600 by 2026 due to the disproportionate cuts in tax credits for older consumers. A 21-year-old earning the same amount would see his or her premium drop from $1,700 to $1,450.

In so far as overall premiums drop, this is because older workers—whose health care costs are higher—will simply leave the market because they can no longer pay for insurance. The result will be a sharp increase in mortality and fall in life expectancy, which is already on the decline in the US due to the rise in suicides, drug abuse and other social ills.

These changes are only a prelude to raising the eligibility age for Medicare to 67 and beyond and transforming it into a voucher program. At the same time, the Republican plan would slash funding for Medicaid—the federal entitlement program for the poor—by 25 percent by 2026, reducing the number of Medicaid beneficiaries by 17 percent, or 14 million people. Trump’s appointee to head the Center for Medicare and Medicaid Services (CMS), Seema Verma, has already tested out work requirements for Medicaid and health savings accounts in Indiana.

When Medicare was passed in 1965, a byproduct of a powerful wave of social struggles, the average life expectancy of a male in the US was 66.8 years, and for working class men it was even lower. At the time, the government program was designed to provide a couple of years of health care. But to the growing horror of the American ruling class, increased access to health care and major advances in science and medicine led to a significant increase in life expectancy, with the government paying out benefits for a decade or two longer than had been anticipated.

The mid-1960s was also the period when many workers secured pensions and won retiree health care benefits, which enabled them to live many years after they stopped producing profits for corporate America.

This has provoked ever-greater anger and bitterness in the ruling class. By the 1990s, there was a chorus of complaints about the aging population, and how out-of-control health care costs were undermining the global competitiveness of US businesses. In 2005, Delphi CEO Steve Miller complained that “people are living longer these days.” He declared that employer-paid benefits made sense only in an era when “you worked for one employer till age 65 and then died at age 70…”

Obamacare was the first significant effort to reverse this trend by undermining the system of employer-paid health benefits and shifting the costs of medical care from the corporations and the government onto the backs of workers. The plan, drawn up by insurance and medical business interests, rationed care and dumped low-income workers into barebones plans.

In opposition to all of those who claimed Obamacare was a progressive social reform, the WSWS explained that it was the opening shot of a health care counterrevolution aimed at stripping the working class of access to affordable and decent coverage, and substantially reducing life expectancy. This assault is now being vastly expanded.

The war against the working class in the US is inseparable from the criminal wars being fought abroad. In a major article in Foreign Affairs magazine in 2016, entitled, “Preserving Primacy: A Defense Strategy for the New Administration,” House Armed Services Committee Chairman Mac Thornberry and national security strategist Andrew F. Krepinevich Jr. concluded that expanding US military operations against China, Russia, Iran and preserving US military domination would require taking on “the expanding cost of entitlement programs.” The main confrontation the next administration would have would be on “the domestic front,” they wrote.

The assault on health care, like the attack on jobs and living standards, the attack on immigrants and democratic rights, and the drive to war, will provoke enormous social opposition. The fight against Trump requires a fight against the bankrupt capitalist system and both big business parties, which laid the groundwork for the most reactionary government in US history.

This requires the building of a revolutionary leadership to unite every form of social opposition in mass political movement of the working class for a workers’ government and socialism. This is the only way that profit can be taken out of health care and high quality medical coverage established as a social right for all.

Jerry White

 

http://www.wsws.org/en/articles/2017/03/16/pers-m16.html

Gutting Obamacare: Opening Salvo in the Republican War on Seniors, Middle-Aged and Poor Americans

Seriously undermining Medicare and Medicaid, shifting thousands in unaffordable annual costs to families.

Photo Credit: http://www.speaker.gov

If Republican elites in Congress were honest about their agenda, no senior would ever vote Republican.

The current fight over repealing and replacing the Affordable Care Act (ACA) is not generally couched in terms of its impact on seniors, but it should be. It is a thinly veiled — and serious — opening attack on the economic and health security of those who have spent a lifetime contributing to our nation.

While Donald Trump and his fellow Republicans campaigned on undoing the Affordable Care Act, no one ran on undermining Medicare or Medicaid. No one ran on undermining the health security of seniors. But the so-called repeal and replacement of the ACA would do just that.

Let’s start with Medicare. Seniors aged 65 and over, as well as people with serious disabilities, rely on Medicare for their basic health insurance. That program will be seriously weakened if the Republican plan to gut the ACA is enacted. It is estimated that Medicare’s revenue will drop by $346 billion. The Republican bill to repeal the ACA drains Medicare to gives tax breaks to wealthy Americans and corporations. In fact, even before Republicans pass a so-called “tax reform bill,” this bill’s giveaway amounts to a whopping $525 billion tax break for the wealthiest among us.

For those who have been paying attention, this weakening of Medicare is not surprising. In fact, it is just the first step in the eventual dismantling of this vital program, which Speaker Paul Ryan has been advocating for years. Consistent with that goal, as soon as the election ended, Ryan announced his intention to voucherize Medicare. He falsely claimed that Republicans had to “address” Medicare, saying, “because of Obamacare, Medicare is going broke.”

That is an enormous lie. The ACA strengthened Medicare’s finances. It is the Republican bill that would weaken Medicare. The next step will be undoing Medicare, by replacing its guaranteed insurance with vouchers. In that way, Republicans will shift Medicare’s costs from the government balance sheet to the shoulders of seniors, who will be on their own.

Medicaid is another program vital to seniors and people with disabilities. The Center for Medicare and Medicaid Services has found that at least 70 percent of seniors will need long-term care at some point. Medicaid currently pays for the long-term care of more than 60 percent of nursing home residents.

The GOP’s bill, if enacted, will place caps on Medicaid spending, again shifting costs away from the federal balance sheet and to the balance sheets of states and individuals. If that is enacted, seniors needing long term care and their families may find themselves out of luck, since nursing home care is extremely expensive. It is estimated that the typical annual cost of a semi-private room in a nursing home is $80,300. Very few families can afford that huge cost on their own.

And the impact on seniors not yet 65, and so, not yet on Medicare, will be the harshest of all. They will have more difficulty obtaining insurance and will face higher health care costs if this legislation is enacted and implemented.

(Editor's note: As Vox reported in its Tuesday analysis, "In general, the impact of the Republican bill would be particularly severe for older individuals, ages 55 to 64. Their costs [of annual premiums] would increase by $5,269 if the bill went into effect today and by $6,971 in 2020. Individuals with income below 250 percent of the federal poverty line would see their costs increase by $2,945 today and by $4,061 in 2020.")

In addition to slowing the cost of health care generally, the Affordable Care Act (ACA) limited the amount that insurance companies could charge seniors for healthcare. Upon repeal, insurance companies will be free to implement the ageist policy that charges even healthy seniors five times more for no reason other than their age. Not only that, the bill reduces what services insurance is required to cover. The result: people will be paying far more money for much worse coverage. This will be devastating for people in their fifties and early sixties, who aren’t yet eligible for Medicare.

The truth is that all of these cuts are entirely unnecessary. In fact, Medicare should be expanded to cover all of us. Medicare and Medicaid are more efficient than private insurance. Other nations are able to provide health care as a right, at a fraction of the cost with better health outcomes. We should be building on the successes of Medicare and Medicaid and the cost savings measures of the ACA. But instead, Republicans in Congress want to take us backwards.

Their reasons? Ideology, power, and greed. By proving that government can play a positive role in people’s lives, and provide wage and health insurance better and more efficiently than the private sector, Medicare and Medicaid, together with Social Security, disprove the GOP’s radical anti-government philosophy. Who would benefit from a nation without Social Security, Medicare, Medicaid, or the ACA? Wealthy donors.

While the top one percent has most of the nation’s wealth, we still are a nation of one person, one vote. Seniors and their families have the numbers to defeat this attack. But it will demand that all of us make our voices heard.

 

Nancy Altman is author of The Battle for Social Security: From FDR's Vision to Bush's Gamble (John Wiley & Sons, 2005) is president of Social Security Works and Chair of the Strengthen Social Security Coalition. She is co-author, with Eric R. Kingson, of Social Security Works! Why Social Security Isn't Going Broke and How Expanding It Will Help Us All (The New Press, 2015), and has written the forward to a new release of Thomas Paine's

http://www.alternet.org/economy/gutting-obamacare-opening-salvo-republican-war-seniors-middle-aged-and-poor-americans?akid=15273.265072.9VWtB6&rd=1&src=newsletter1073462&t=24

Donald Trump’s Greatest Allies Are the Liberal Elites

Posted on Mar 5, 2017

By Chris Hedges

Mr. Fish / Truthdig

The liberal elites, who bear significant responsibility for the death of our democracy, now hold themselves up as the saviors of the republic. They have embarked, despite their own corruption and their complicity in neoliberalism and the crimes of empire, on a self-righteous moral crusade to topple Donald Trump. It is quite a show. They attack Trump’s “lies,” denounce executive orders such as his travel ban as un-American and blame Trump’s election on Russia or FBI Director James Comey rather than the failed neoliberal policies they themselves advanced.

Where was this moral outrage when our privacy was taken from us by the security and surveillance state, the criminals on Wall Street were bailed out, we were stripped of our civil liberties and 2.3 million men and women were packed into our prisons, most of them poor people of color? Why did they not thunder with indignation as money replaced the vote and elected officials and corporate lobbyists instituted our system of legalized bribery? Where were the impassioned critiques of the absurd idea of allowing a nation to be governed by the dictates of corporations, banks and hedge fund managers? Why did they cater to the foibles and utterings of fellow elites, all the while blacklisting critics of the corporate state and ignoring the misery of the poor and the working class? Where was their moral righteousness when the United States committed war crimes in the Middle East and our militarized police carried out murderous rampages? What the liberal elites do now is not moral. It is self-exaltation disguised as piety. It is part of the carnival act.

The liberal class, ranging from Hollywood and the Democratic leadership to The New York Times and CNN, refuses to acknowledge that it sold the Democratic Party to corporate bidders; collaborated in the evisceration of our civil liberties; helped destroy programs such as welfare, orchestrate the job-killing North American Free Trade Agreement and Trans-Pacific Partnership deal, wage endless war, debase our public institutions including the press and build the world’s largest prison system.

“The truth is hard to find. The truth is hard to know. The truth is more important than ever,” reads a television ad for The New York Times. What the paper fails to add is that the hardest place to find the truth about the forces affecting the life of the average American and the truth about empire is in The New York Times itself. News organizations, from the Times to the tawdry forms of entertainment masquerading as news on television, have rendered most people and their concerns invisible. Liberal institutions, especially the press, function, as the journalist and author Matt Taibbi says, as “the guardians” of the neoliberal and imperial orthodoxy.

It is the job of the guardians of orthodoxy to plaster over the brutal reality and cruelty of neoliberalism and empire with a patina of civility or entertainment. They pay homage to a nonexistent democracy and nonexistent American virtues. The elites, who live in enclaves of privilege in cities such as New York, Washington and San Francisco, scold an enraged population. They tell those they dismiss as inferiors to calm down, be reasonable and patient and trust in the goodness of the old ruling class and the American system. African-Americans have heard this kind of cant preached by the white ruling class for a couple of centuries.

Because the system works for the elites, and because the elites interact only with other elites, they are mystified about the revolt rising up from the decayed cities they fly over in the middle of the country. They think they can stuff this inexplicable rage back in the box. They continue to offer up absurd solutions to deindustrialization and despair, such as Thomas Friedman’s endorsement of “a culture of entrepreneurship” and “an ethic of pluralism.” These kinds of bromides are advertising jingles. They bear no more connection to reality than Trump promising to make America great again.

I walked into the Harvard Club in New York City after midnight on election night. The well-heeled New York elites stood, their mouths agape, looking up at the television screens in the oak-paneled bar while wearing their Clinton campaign straw hats. They could not speak. They were in shock. The system they funded to prevent anyone from outside their circle, Republican or Democrat, from achieving the presidency had inexplicably collapsed.

Taibbi, when I interviewed him in New York, said political power in our corporate state is controlled by “a tripartite system.” “You have to have the assent of the press, the donor class, and one of the two [major] political parties to get in,” said Taibbi, author of “Insane Clown President: Dispatches From the 2016 Circus.” “It’s an exclusive club. It’s like a membership system. They all have to agree and confer their blessing on the candidate. Trump somehow managed to get past all three of those obstacles. And he did it essentially by putting all of them on trial. He put the press on trial and villainized them with the public. I think it was a brilliant masterstroke that nobody saw coming. But it wouldn’t have been possible if their unpopularity hadn’t been building for years and years and years.”

“It’s a kind of Stockholm syndrome,” he said of the press. “The reporters, candidates, and candidates’ aides are all thrown together. They’re stuck in the same environment with each other day after day, month after month. After a while, they start to unconsciously adopt each other’s values. Then they start to live in the same neighborhoods. They go to the same parties. Then it becomes a year-after-year kind of thing. Then after that, they’re the same people. It’s a total perversion of what’s supposed to happen. We’re [the press] supposed to be on the outside, not identifying with these people. But now, it’s a club. Journalists enjoy the experience of being close to power.”

CONTINUED:

http://www.truthdig.com/report/item/donald_trumps_greatest_allies_are_the_liberal_elites_20170305

The Snap IPO: Trump agenda fuels an orgy of speculation

snap-surges-44-in-its-stock-market-debut-after-an-ipo-that-made-its-20-something-founders-multibillionaires

3 March 2017

Shares of Snap Inc., the maker of the Snapchat messaging app, surged 44 percent Thursday after its initial public offering (IPO). The firm, which has a miniscule number of employees, has never turned a profit and lost $514.6 million last year, is now valued higher than the retailing giant Target, which employs over 300,000 people.

Within seconds of trading in the stock getting underway, an hour and a half or so after they had rung the opening bell, the wealth of each of the company’s two co-founders, Evan Spiegel and Bobby Murphy, was boosted to $5.3 billion as the shares jumped from an initial price of $17 to more than $24—a leap of 44 percent. They rose even further during the course of the day before falling back slightly at close of trading. Others also benefited, including the venture capital firms Benchmark Capital and Lightspeed Venture Partners which made $903 million and $613 million respectively.

The explosion in the value of Snap shares is illustrative of two interconnected processes. It is a further demonstration of the rise of parasitism at the heart of the US economy and financial system. At the same time, it is another graphic endorsement by Wall Street and US financial elites of the policies of the Trump administration aimed at setting loose the “animal spirits” of capitalist money-making, free from any government control or regulations.

The fact that Snap Inc. has warned that it may never turn a profit did not prevent a rush for the stock. Speculators salivated not so much on the prospect that Snapchat’s 158 million users, sending more than 2.5 billion images and messages every day and concentrated in the 18- to 34-year-old demographic, could be a lucrative source of revenue. Rather, the stampede was motivated by the very short-term prospect, measured in minutes or even seconds, that there were huge immediate gains to be made on a rise in its share value.

The response to the Snap launch was hailed on Wall Street as a sign that the downturn in IPOs in the past two years was coming to an end and that further massive fortunes could be made if other firms such as ride-hailing service Uber and rental service Airbnb decide to list publicly.

The Snap IPO took place in the midst of a market surge that began with the election of Donald Trump four months ago. Since Election Day, the market has risen by 15 percent and on Wednesday the Dow Jones index hit a new record high of 21,000 after passing the 20,000 mark on January 25.

The IPO took place the same week as Trump announced plans to increase US military spending by a massive $53 billion, offset with cuts to social spending and foreign aid, and as his administration presided over a massive round-up of undocumented workers.

As Trump noted in his address to Congress this week, since his election victory, more than $3 trillion has been added to share values. The driving force of this process is not the prospect of a genuine revival of the US economy—growth continues to trend below 2 percent—but rests on the belief that the administration is going to scrap legal and administrative constraints on profit-making.

In short, the type of economic and financial arrangements that have characterised Trump’s business career, based on speculation, swindling, low wages, and business malfeasance, are now going to hold even greater sway in the American economy as a whole.

This perspective has been articulated by Trump’s chief strategist, the fascistic ideologue and economic nationalist Stephen Bannon, who has insisted on the scrapping of what he calls the “administrative state.”

The Snap IPO is an expression of this general process. This is a company which makes nothing, which has very few employees and whose valuation is based on the belief that it is a vehicle through which money will simply be able to beget more money via financial operations.

That such speculation now increasingly assumes the first place in wealth accumulation is expressive of the rot at the very heart of American capitalism. It results from the fact that trillions of dollars are unable to find a productive outlet in the real economy and investors increasingly seek returns through financial manipulations.

The same phenomenon is visible elsewhere. One of the chief drivers of the share market rise has been the escalation in the value of bank shares, particularly of Goldman Sachs, former executives and employees of which have assumed prominent positions in the Trump administration.

The rise in bank share values is not the result of expectations of a surge of lending for productive activities, but flows from the belief that the Trump Administration intends to dismantle financial regulations, including the extremely limited measures introduced under the Dodd-Frank Act in response to the financial crisis of 2008.

Likewise, the surge in the shares of companies, such as Caterpillar, involved in infrastructure projects is not based on any genuine public initiatives—notwithstanding Trump’s declaration in his address to Congress that crumbling infrastructure will be replaced by new roads, bridges, tunnels, airports and railways, “gleaming” across the land. Rather, it is grounded on the understanding that at the centre of the $1 trillion so-called infrastructure program will be tax concessions and write-offs for major firms.

Armaments firms and defence contractors are also enjoying a surge because of Trump’s commitment to increase military spending at the cost of vital social services. And adding fuel to the fire is the promise of major tax cuts, both at the personal and corporate level.

The prospect that the very heights of American society, already wallowing in obscene levels of wealth, are going to be further richly rewarded under the Trump administration is the essential content of the Snap IPO frenzy.

The election of Trump marks a new stage in the social counter-revolution initiated under Obama, the aim of which has been to massively enrich the financial oligarchy through the impoverishment of workers, the dismantling of social services, and the elimination or non-enforcement of financial, environmental, occupational health, and other business regulations.

This is the outcome of the capitalist system, which, beset by economic, geopolitical, and social crisis, sees no solution to its internal maladies outside of dragging society back over a hundred years to the age of the robber barons.

Trump’s reactionary social and economic agenda, which has already given rise to the largest mass protests in US history, will set the administration on a collision course with the working class. If workers are to fight back, they must understand that Trump does not act as an individual—a blot on the otherwise healthy capitalist system—but rather expresses its innermost essence: parasitism, dictatorship, and militarism.

The struggle against the Trump administration is the fight against the social class he represents—the American financial oligarchy—and the capitalist system. It requires the working class to adopt a socialist strategy, aiming to overturn capitalism and replace it with public ownership and control of the means of production.

Nick Beams

http://www.wsws.org/en/articles/2017/03/03/pers-m03.html