Why does Donald Trump demonize cities?

Because they show that the liberal experiment works

March 17

Will Wilkinson is the vice president for policy at the Niskanen Center and a former U.S. politics correspondent for the Economist.

President Trump is a big-city guy. He made his fortune in cities and keeps his family in a Manhattan tower. But when Trump talks about cities, he presents a fearsome caricature that bears little resemblance to the real urban landscape.

“Our inner cities are a disaster,” he declared in a campaign debate. “You get shot walking to the store. They have no education. They have no jobs.” Before his inauguration, in a spat with Atlanta’s representative in Congress, he tweeted: “Congressman John Lewis should spend more time on fixing and helping his district, which is in horrible shape and falling apart (not to mention crime infested).” He makes Chicago sound like an anarchic failed state. “If Chicago doesn’t fix the horrible ‘carnage’ going on, 228 shootings in 2017 with 42 killings (up 24% from 2016), I will send in the Feds!” he warned. His executive order on public safetyclaimed that sanctuary cities, which harbor undocumented immigrants, “have caused immeasurable harm to the American people and to the very fabric of our Republic.”

With this talk, Trump is playing to his base, which overwhelmingly is not in cities. Party affiliation increasingly reflects the gulf between big, diverse metros and whiter, less densely populated locales. For decades, like-minded people have been clustering geographically — a phenomenon author Bill Bishop dubbed “the Big Sort ” — pushing cities to the left and the rest of the country to the right. Indeed, the bigger, denser and more diverse the city, the better Hillary Clinton did in November. But Trump prevailed everywhere else — in small cities, suburbs, exurbs and beyond. The whiter and more spread out the population, the better he did.

 

He connected with these voters by tracing their economic decline and their fading cultural cachet to the same cause: traitorous “coastal elites” who sold their jobs to the Chinese while allowing America’s cities to become dystopian Babels, rife with dark-skinned danger — Mexican rapists, Muslim terrorists, “inner cities” plagued by black violence. He intimated that the chaos would spread to their exurbs and hamlets if he wasn’t elected to stop it.

Trump’s fearmongering turned out to be savvy electoral college politics (even if it left him down nearly 3 million in the popular vote). But it wasn’t just a sinister trick to get him over 270. He persists in his efforts to slur cities as radioactive war zones because the fact that America’s diverse big cities are thriving relative to the whiter, less populous parts of the country suggests that the liberal experiment works — that people of diverse origins and faiths prosper together in free and open societies. To advance his administration’s agenda, with its protectionism and cultural nationalism, Trump needs to spread the notion that the polyglot metropolis is a dangerous failure.

The president has filled his administration with advisers who oppose the liberal pluralism practiced profitably each day in America’s cities. “The center core of what we believe,” Steve Bannon, the president’s trusted chief strategist, has said, is “that we’re a nation with an economy, not an economy just in some global marketplace with open borders, but we are a nation with a culture and a reason for being.” This is not just an argument for nationalism over globalism. Bannon has staked out a position in a more fundamental debate over the merits of multicultural identity. Whose interests are included when we put “America first”?

When Trump connects immigration to Mexican cartel crime, he’s putting a menacing foreign face on white anxiety about the country’s shifting demographic profile, which is pushing traditional white, Judeo-Christian culture out of the center of American national identity. “The ceaseless importation of Third World foreigners with no tradition of, taste for, or experience in liberty,” wrote Michael Anton , now a White House national security adviser, is “the mark of a party, a society, a country, a people, a civilization that wants to die.” Bannon has complained that too many U.S. tech company chief executives are from Asia.

The Census Bureau projects that whites will cease to be a majority in 30 years. Suppose you think the United States — maybe even all Western civilization — will fall if the U.S. population ever becomes as diverse as Denver’s. You are going to want to reduce the foreign-born population as quickly as possible, and by any means necessary. You’ll deport the deportable with brutal alacrity, squeeze legal immigration to a trickle, bar those with “incompatible” religions.

But to prop up political demand for this sort of ethnic-cleansing program — what else can you call it? — it’s crucial to get enough of the public to believe that America’s diversity is a dangerous mistake. If most white people come to think that America’s massive, multicultural cities are decent places to live, what hope is there for the republic? For Christendom?

The big cities of the United States are, in fact, very decent places to live. To be sure, many metros have serious problems. Housing is increasingly unaffordable, and the gap between the rich and poor is on the rise. Nevertheless, the American metropolis is more peaceful and prosperous than it’s been in decades.

Contrary to the narrative that Trump and his advisers promote, our cities show that diversity can improve public safety. A new study of urban crime rates by a team of criminologists found that “immigration is consistently linked to decreases in violent (e.g., murder) and property (e.g., burglary) crime” in the period from 1970 to 2010. What’s more, according to an analysis of FBI crime data, counties labeled as “sanctuary” jurisdictions by federal immigration authorities have lower crime rates than comparable non-sanctuary counties. The Trump administration’s claim that sanctuary cities “have caused immeasurable harm” is simply baseless. Even cities that have seen a recent rise in violent crime are much safer today than they were in the early 1990s, when the foreign-born population was much smaller.

Yes, cities have their share of failing schools. But they also have some of the best schools in the country and are hotbeds of reform and innovation. According to recent rankings by SchoolGrades.org , the top 28 elementary and middle schools in New York state are in New York City; Ohio’s top four schools are in Cincinnati, Cleveland, Youngstown and Columbus; and the best school in Pennsylvania is in Philadelphia. “The culture of competition and innovation, long in short supply in public education, is taking root most firmly in the cities,” according to the Manhattan Institute researchers who run the site.

And it gets things exactly backward to think of unemployment as a problem centered in cities.

Packing people close together creates efficiencies of proximity and clusters of expertise that spur the innovation that drives growth. Automation has killed off many low- and medium-skill manufacturing jobs, but technology has increased the productivity, and thus the pay, of highly educated workers, and the education premium is highest in dense, populous cities. The best-educated Americans, therefore, gravitate toward the most productive big cities — which then become even bigger, better educated and richer.

Meanwhile, smaller cities and outlying regions with an outdated mix of industry and a less-educated populace fall further behind, displaced rather than boosted by technology, stuck with fewer good jobs and lower average wages. The economist Enrico Moretti calls this regional separation in education and productivity “the Great Divergence.”

Thanks to the Great Divergence, America’s most diverse, densely populated and well-educated cities are generating an increasing share of the country’s economic output. In 2001, the 50 wealthiest U.S. metro regions produced about 27 percent more per person than the country as a whole. Today, they produce 34 percent more, and there’s no end to the divergence in sight.

Taken together, the Great Divergence and the Big Sort imply that Republican regions are producing less and less of our nation’s wealth. According to Mark Muro and Sifan Liu of the Brookings Institution, Clinton beat Trump in almost every county responsible for more than a paper-thin slice of America’s economic pie. Trump took 2,584 counties that together account for 36 percent of the nation’s gross domestic product. Clinton won just 472 counties — less than 20 percent of Trump’s take — but those counties account for 64 percent of GDP.

The relative economic decline of Republican territory was crucial to Trump’s populist appeal. Trump gained most on Romney’s 2012 vote share in places where fewer whites had college degrees, where more people were underwater on their mortgages , where the population was in poorer physical health, and where mortality rates from alcohol, drugs and suicide were higher.

But Trump’s narrative about the causes of this distress are false, and his “economic nationalist” agenda is a classic populist bait-and-switch. Trump won a bigger vote share in places with smaller foreign-born populations. The residents of those places are, therefore, least likely to encounter a Muslim refugee, experience immigrant crime or compete with foreign-born workers. Similarly, as UCLA political scientist Raul Hinojosa Ojeda has shown, places where Trump was especially popular in the primaries are places that face little import competition from China or Mexico. Trump’s protectionist trade and immigration policies will do the least in the places that like them the most.

Yet the Great Divergence suggests a different sense in which the multicultural city did bring about the malaise of the countryside. The loss of manufacturing jobs, and the increasing concentration of the best-paying jobs in big cities, has been largely due to the innovation big cities disproportionately produce. Immigrants are a central part of that story.

But this is just to repeat that more and more of America’s dynamism and growth flow from the open city. It’s difficult to predict who will bear the downside burden of disruptive innovation — it could be Rust Belt autoworkers one day and educated, urban members of the elite mainstream media the next — which is why dynamic economies need robust safety nets to protect citizens from the risks of economic dislocation. The denizens of Trump country have borne too much of the disruption and too little of the benefit from innovation. But the redistribution-loving multicultural urban majority can’t be blamed for the inadequacy of the safety net when the party of rural whites has fought for decades to roll it back. Low-density America didn’t vote to be knocked on its heels by capitalist creative destruction, but it has voted time and again against softening the blow.

Political scientists say that countries where the middle class does not culturally identify with the working and lower classes tend to spend less on redistributive social programs. We’re more generous, as a rule, when we recognize ourselves in those who need help. You might argue that this just goes to show that diversity strains solidarity. Or you might argue that, because we need solidarity, we must learn to recognize America in other accents, other complexions, other kitchen aromas.

Honduran cooks in Chicago, Iranian engineers in Seattle, Chinese cardiologists in Atlanta, their children and grandchildren, all of them, are bedrock members of the American community. There is no “us” that excludes them. There is no American national identity apart from the dynamic hybrid culture we have always been creating together. America’s big cities accept this and grow healthier and more productive by the day, while the rest of the country does not accept this, and struggles.

In a multicultural country like ours, an inclusive national identity makes solidarity possible. An exclusive, nostalgic national identity acts like a cancer in the body politic, eating away at the bonds of affinity and cooperation that hold our interests together.

Bannon is right. A country is more than an economy. The United States is a nation with a culture and a purpose. That’s why Americans of every heritage and hue will fight to keep our cities sanctuaries of the American idea — of openness, tolerance and trade — until our country has been made safe for freedom again.

An increasingly connected world needs hackers more than ever before

Internet security expert Justin Calmus explains why bug bounty programs are so important

An increasingly connected world needs hackers more than ever before
(Credit: Getty/welcomia)

As the world around us becomes more connected to the internet, the number of ways that hackers can infiltrate our lives becomes increasingly multifarious. Today data breaches are taking place in ways that were unheard of just a decade ago — from remotely hacking cars to infiltrating “smart” teddy bears.

The threats have grown so quickly that companies are overwhelmed by the increasing number of attacks, security experts say. This is not just because of the growing number of opportunities to infiltrate a network or device, but also because these attacks are increasingly automated and launched from low-priced computer hardware using open-source tools that require relatively low coding skills to deploy. Defending against such attacks can require well-paid and highly trained experts.

“We believe that cybersecurity is a correctable math problem that, at present, overwhelmingly favors the attackers,” Ryan M Gillis, vice president of cybersecurity strategy for enterprise security company Palo Alto Networks, said at a House Homeland Security Committee meeting last week about protecting the private sector from hacking. “Network defenders are simply losing the economics of the cybersecurity challenge.”

One increasingly popular way for a company or government agency to root out vulnerabilities is through a big bounty program, a policy that invites hackers to try to infiltrate its connected networks. Hackers receive financial compensation for identifying entry points that could be exploited for malicious purposes. The idea has been around since at least 1995, when internet browser pioneer Netscape initiated its “bugs bounty” program with a $50,000 budget. Today such programs are common among major companies, including United Airlines and Tesla Motors, and can be lucrative projects for the most talented hackers who can earn from $10 to tens of thousands of dollars depending on the severity of the vulnerability identified.

Last week Google and Microsoft increased their top rewards for people who can expose the most serious threats, like when code can be remotely injected and executed through network defenses. This underscores the growing popularity of bounty programs as companies compete for the attention of the most talented ethical hackers. Apple, which has resisted compensating people for identifying flaws, last year succumbed to the trend and now offers bounties of as much as $200,000.

Justin Calmus, vice president of hacker success for San Francisco-based HackerOne, which has a bug-bounty platform whose clients include the U.S. State Department, Uber Technologies and General Motors, spoke with Salon about the role bug bounties play in boosting network security.

Bug bounties have been around for about 20 years. Talk about the most recent innovations in the practice and where it might be headed.

I’ll start with the problem first. If we go back 15 years, companies would be able to recruit engineers because they were focused on specific technologies. You would have a few issues from most likely Python, [a high-level general-purpose programming language,] and you would have a website and some people who knew HTML, [the standard language for building websites]. Today we have so many different programming languages and we have different infrastructure components, like running in the cloud versus on premise, we have [Amazon Web Services, a widely used cloud-computing platform] and we have all these different operations.

The problem of security is getting bigger and bigger. How do you control your security? If you run a startup, how do you control your security as you build your business? That’s an even harder problem to solve because you don’t necessarily have the funding to hire tons of security resources. You have to figure out “How do I continue to stay secure while I scale?” That’s one of the problems bug bounties solve for.

For the most part, if you have a company, and it could be any company, you tell hackers, “Hey, I want you to do anything it takes to get access to our data and report it to us.” If you do that, you then have thousands of eyes looking into your specific programs to help you scale and help you secure your business.

Are there hackers that just do this as full-time jobs?

Yeah, we have a gentleman in Vegas that does this full-time, making a half a million dollars a year doing this. You can make a significant income from bug bounties. It’s a fantastic way to make extra income and to potentially go full-time.

Google and Microsoft recently announced big increases in their bug bounty rewards. Why do you think bug bounties are becoming more lucrative?

Imagine if Salon.com is trying to recruit the best reporter in the world, but that reporter must have specific knowledge about security — and it also wants a little bit of software engineering background because the reporter needs to talk technical, and it wants the reporter to be located in this area, and the reporter must be willing to travel. Suddenly you’re moving your needle so small that there might be three people in the world who fit the criteria.

Google is starting to have this problem. They’ve developed a lot of their own tools and they’ve developed their own [programming] language. It’s not easy to find a Google bug because there isn’t external training on what Google does, how they do it, all the different types of infrastructure. There are pretty good resources to figure this out, but to go deep on such a massive problem you need to spend hours and days and months getting to know the infrastructure to find a bug. So to dedicate all of your time and resources into Google you need to be very incentivized to look because at the end of the day you might not find anything.

We’re entering an era of the internet of things [that] connects cars, smart cities, toys with Wi-Fi connections. Are bug bounties being implemented for things like this?

We’re getting to the point to where the [makers of] hardware and the internet of things components are starting to be asked those very questions. As a hacker myself, I want to see them participate in bug bounty programs because I use Alexa, I use some of the apps connected to [the internet of things] and it’s my job to understand how the software and hardware that I buy works. Doing due diligence and being able to reverse engineer to take a look deep into a product, you may find issues and vulnerabilities; some of them may even give you access to other customers’ data. Companies need to be able to responsibly disclose all of that. For hackers to put in the time and effort to find some of these vulnerabilities — it would be fantastic if companies would reward the hackers so that they continue looking into their programs.

We’ve read a lot about how automakers are encouraging white hat hackers to root out these vulnerabilities. But is this happening with other makers of internet-connected products, like internet-connected home appliances or “smart” teddy bears?

It’s absolutely a slow roll. The tech companies get it. They have to deal with security issues day in and day out. The hardware companies don’t necessarily understand it as much as they need to. It’s a problem we’re solving for. We do have some hardware companies on board. We do have internet of things [companies] on board. But we do need to get the word out that security is a fundamental piece of everybody’s life. You need to be able to understand the security outcomes of making life more efficient or easier or whatever it may be. So do I think that we need to spread the word? Absolutely. Do I think they get it yet? Not 100 percent.

The Information Technology and Innovation Foundationrecently said that a significant number of federal government websites failed basic security benchmarks. Is the federal government falling behind in this effort to entice ethical hackers?

The Department of Defense has a bug bounty program and we’re starting to see efforts to secure all of our government services. Just speaking to higher-ups on the government side I hear them talking about “Hey, we need to find these hackers and reward them and incentivize them, see what we can do to continue to have them continue to look at our programs and even eventually hire them.” The U.S. has its own hiring criteria, but the [Defense Department] is open to anybody today, not just U.S. citizens looking to work for them.

HackerOne recently announced a platform for the open-source coding community, which is free. What inspired you to go in that direction?

We’re absolutely huge open-source fans. Open source powers our platform. It powers many platforms. We see the mission as making the entire internet safer and make sure that everyone is taken care of. We’re better off doing that for all of the open-source projects out there. We want to make sure we’re on top of that. This also helps us branch out to the best hackers out there. We’re able to leverage our ability find vulnerabilities [in open-source software] while we’re getting more connected to the hacker community.

How Uber Could End Up As Silicon Valley’s Most Spectacular Crash

ECONOMY

Lately, the curtain is being pulled back to reveal a rotten culture and troubled CEO.

Photo Credit: Prathan Chorruangsak / Shutterstock.com

Just a year ago, Uber reigned as the tech industry’s awe-inspiring, all-powerful Wizard of Oz. But lately, the curtain is being pulled back to reveal a guy who’s more like an angry drunk frantically yanking levers while taking roundhouse swings at the Tin Man and propositioning Dorothy.

Uber is in a whole lot of bad right now, and there’s growing concern that it’s about to melt down like a haywire nuclear reactor, which would leave a crater in the heart of Silicon Valley. Uber gave us on-demand transportation. Countless people all over the world love this new kind of service. The category is only going to get bigger. But it’s possible it will do that without Uber.

Rotten Culture, Bad PressAt the heart of Uber’s trouble is its culture, which seems to have been born from a one-night stand between John Belushi’s crude Bluto in Animal House and Ayn Rand’s hypercompetitive Hank Rearden. That culture got put on public display in February, when former engineering employee Susan Fowler published a blog calling out Uber’s rotten treatment of women and its general dysfunction. The place is so cutthroat, she wrote, “it seemed like every manager was fighting their peers or attempting to undermine their direct supervisor so that they could have their direct supervisor’s job.”

If anyone thought Fowler was a lone whiner, a few days later tech industry legend Mitch Kapor and his wife, Freada Kapor, who is an expert in workplace mores, published an open letter to Uber’s board. The Kapors were early investors in the company, and they were unhappy about Uber’s tepid response to Fowler’s post and fed up with Uber’s “destructive culture,” to use their term. “We are speaking up now because we are disappointed and frustrated; we feel we have hit a dead end in trying to influence the company quietly from the inside,” they wrote.

A week later, while riding in an Uber, CEO Travis Kalanick was captured on video berating the driver, who dared to complain about cuts to his income because Uber keeps reducing fares. “I’m bankrupt because of you,” the driver told Kalanick, who then erupted. After Bloomberg obtained and published the video, Kalanick found himself in the all-too-familiar position of publicly apologizing. He posted on Uber’s site, “I must fundamentally change as a leader and grow up.” Duh.

Negative publicity keeps battering Uber. The company ran afoul of the protesters who flocked to airports after Donald Trump’s travel ban, then had to fend off a #DeleteUber movement. (Some estimates say 200,000 people deleted the app in the days after the hashtag went viral.) About six months earlier, Uber took a $3.5 billion investment from Saudi Arabia’s Public Investment Fund, a move that made Uber look as if it was buddies with a government that won’t let women drive and puts gay men in jail.

One Uber investor said to Fortune about the deal, “It goes to the heart of who Travis is. He just doesn’t give a shit about optics. Ever.”

Now Uber is being painted as a technology thief by Google’s parent, Alphabet. Last year, Uber bought a company called Otto for a reported $680 million. Otto develops autonomous driving technology. A bunch of people who work there came from Alphabet’s autonomous car subsidiary, now called Waymo. Alphabet alleges that some of those people stole technical data from Waymo, and Alphabet is suing to stop Uber from using it. Uber has often stated that its future rests on having a fleet of self-driving cars—so, of course, it won’t have to share revenue with those pesky human drivers. If Alphabet wins its case, Uber would pretty much have to start building the technology all over again or pay a ton of money to buy someone else’s.

Dissatisfied Drivers, Bleak Financials. While Uber is counting on a hazy future of self-driving cars, in the meantime it has to keep its 160,000 drivers happy, and they are not, as Kalanick’s video encountered showed. Drivers want the Uber app to allow tips; Uber won’t do it. Uber has fought court cases brought by U.S. drivers asking for employee benefits. It settled a suit for $20 million for posting ads that were misleading about how much its drivers can earn. Rival Lyft has been running ads lampooning Uber’s treatment of drivers, hoping to lure away Uber drivers—and convince conscientious riders they should prefer a company that treats its drivers better.  Strategically, Kalanick and his team seem guilty of constant overreach. Does anybody ever order a falafel from UberEats? Who at Uber thought it was a good idea to take on Seamless? Not only did Kalanick buy Otto to get into self-driving cars, but in February he hired a former NASA scientist to develop flying cars. Trump likes to say we always lose to China—well, Uber proved him right by going into China ill-prepared. Last summer, Uber cut a deal with China’s Uber clone, Didi Chuxing, to leave China in exchange for 17.5 percent of the Chinese company and a $1 billion investment by Didi. Is that setting up Didi to eventually beat Uber worldwide? Trump will have a seizure if the day ever comes when U.S. riders no longer say they’re going to “Uber” somewhere and instead say they’re going to “Didi.”And then there is Uber’s financial picture. The company is private, but some of its numbers have been leaked. Bloomberg reported that Uber lost $800 million in the third quarter of 2016. Some speculate Uber may have lost $3 billion last year. Uber is a costly business to run. To serve more customers, it needs to bring in and pay more drivers, so the company can’t take advantage of economies of scale. It has little pricing power because it still faces competition from Lyft and taxis and other newcomers including Maven, which is a unit of General Motors. In order to have the cash to fund operations and expansion, Uber has brought in round after round of private investment, pumping up the valuation of the company to nearly $70 billion. That would make Uber worth more than GM. Raise your hand if you think that makes sense.

The sky-high valuation may be haunting Uber. Kalanick has famously refused to take Uber public, even though the company, at eight years old, is in the sweet spot of when many tech companies do an initial public offering. He makes his stance sound like a maverick’s declaration of independence from public markets, but whispers now are that Uber’s finances might not justify an IPO at a valuation high enough to make current investors happy. If that’s true, Uber is in a hole. It won’t be able to raise money from anyone who has passed sixth-grade math.

If Uber stalls, it isn’t going to be saved by a loyal consumer fan base. There is no stickiness to Uber. It has no frequent-rider program. It has no social component. It prevents users from forming bonds with drivers. No one gets a heightened sense of self by identifying as an Uber rider versus some competitor. We’ll stick with Uber as long as it continues to get us where we want to go at a price we like. Someone else comes along with a better service or lower price, we’ll use it.

Drexel of the 2010s?It’s hard to imagine the devastation that would come with an Uber collapse. Its dozens of investors range from venture capital companies to individuals like Kapor and companies such as Microsoft and Citigroup. The company employs 11,000 people (excluding drivers), mostly around Silicon Valley, and is in the process of spending $250 million on new offices. The blow to Silicon Valley’s ego might be up there with the pain the Democratic Party has been feeling lately.

Uber has done amazing work in its short life. It created, defined and has so far dominated a new market of on-demand transportation, changing the way we do things today and profoundly changing the way we think about the future of urban transportation. It is a historically important company. No one will ever take that away from Kalanick and his crew. But Uber has proved to be a flawed company. To find a business tragedy that’s an appropriate warning for Uber, go back to Drexel Burnham Lambert in the 1980s, when Kalanick was in grade school. (He is, believe it or not, 40 years old.) Drexel, led by investing legend Mike Milken, defined and dominated junk bonds as a category of finance. This changed Wall Street and business forever. Drexel was a superstar. But the company had a flawed culture of insane pressure to perform, so employees took sketchy risks that ultimately led to criminal charges. Within a couple of years, the company fell from the pinnacle of Wall Street power to filing for bankruptcy. Milken went to prison for securities fraud.

The category Drexel created lives on. Today, junk bonds are a $1 trillion market, without Drexel.

The Kapors are pushing Kalanick to reinvent Uber’s culture so it can become an enduring company. It would be awesome if Uber can fulfill its promise and stand next to companies like Apple and Amazon. But as Uber’s bad days pile up, it often looks as if Kalanick has built the Drexel of the 2010s.

Kevin Maney is a best-selling author and award-winning columnist.

 

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

State of Resistance: California in the Age of Trump

ELECTION 2016

The battle begins now.

Photo Credit: ilozavr / Shutterstock

For the past two decades, California has been on the cutting edge of social and economic change in America. Now, with Donald Trump about to enter the Oval Office, the Golden State is poised to take on a new role: leader of the anti-Trump resistance.

California’s frontline position in opposing Trump is not merely a reflection of its deep-blue politics. On many of the flashpoint issues expected to define Trump’s presidency, California has a tremendous amount at stake. As the new administration tries to reverse the significant gains made on immigrant rights, climate change, criminal justice and workers’ rights, to name a few subjects, many of the fiercest battles in the country will be fought up and down the state.

Can California lead the resistance to Trump’s right-wing agenda and continue to be in the vanguard of advancing progressive change? Yes – and in fact, the two are inextricably linked, both tactically and symbolically. In the months and years to come, California must become like the best sports teams, capable of playing defense and offense at the highest level.

Why California Must Lead

No state rivals California either in the dimensions of its population or economy. At just under 40 million people, California has more residents than the nation’s 20 least densely populated states put together. Its economy is the sixth-largest in the world, trailing only the U.S., China, Japan, Germany and the United Kingdom.

California is also home to several of the nation’s most powerful and influential industries, including high tech and entertainment. Both Silicon Valley and Hollywood wield enormous economic clout, and are key shapers of consumer habits and cultural norms.

Why is this significant? Because California has the ability to exert enormous pressure on everything from markets and mores to politics and policy, a position it has ably demonstrated in its leadership role in addressing climate change, despite federal inaction.

Size and economic strength by themselves are not enough. But over the past 20 years, California has acquired another key comparative advantage: It has developed some of the most innovative social movements in the country – and exported them to cities across the U.S. These movements have secured rights for immigrants, boosted worker pay, protected LGBTQ Californians and pushed the state forward on addressing climate change. They will be called upon to use their organizing prowess to hold the line against Trump even as they continue to push the envelope of social and economic justice in California and beyond.

California advocates have succeeded in large part by mobilizing an incredibly diverse set of stakeholders. This will pay big dividends now, as very disparate groups of people – immigrants, Muslims, African-Americans, the poor, women, communities already suffering the effects of climate change – see their interests threatened by the Trump administration. The experience of working together across racial, ethnic, geographic and class lines will lend itself to the creation of even broader alliances – so broad that California could be a key base for the biggest and most diverse progressive coalition the nation has ever seen.

Flashpoint Issues

While California’s anti-Trump coalition will need to develop the capacity to fight many battles at once, one initial front will surely be immigration. If Trump makes good on his campaign promises, hundreds of thousands of undocumented immigrants will be faced with deportation, many of them DREAMers protected by the Deferred Action for Childhood Arrivals (DACA).

The economic, social and human costs of disrupting the lives of so many Californian families are staggering. Recognizing this, state and local leaders have vowed to resist efforts targeting immigrants, setting the stage for high-stakes confrontations with the new administration.

No less dramatic will be the battles over climate change. Governor Jerry Brown has vowed to oppose any efforts to roll back the state’s pioneering environmental policies (including a promise to have California launch its own satellites to gather information on global warming!), and he will be joined by a broad-based group of business leaders and activists.

Another flashpoint will be workers’ rights. Fast-food CEO Andrew Puzder is likely to be the new labor secretary: He is on the record as opposing increases in the minimum wage and expansion of overtime pay and is clearly no ally of those who seek to rein in the abuse of independent contractors and gig-economy workers. In California, the nation’s strongest labor movement, together with community and business allies, has enacted some of the most far-reaching worker protections in the country; we will need to stand firm on what we’ve won and stand strong against an assault on labor rights.

More broadly, unions face an existential crisis under a President Trump. Just last year, the Supreme Court heard a key case initiated out of the Golden State, Friedrichs v. California Teachers Association, in which anti-labor advocates sued to eliminate the ability of unions to collect dues for collective bargaining. Down one justice, the Court deadlocked – but since a tie sets no national precedent, another version of the same sort of case is widely expected to come up once Trump fills the open seat. Californians will have to be among those opposing any Court nominee likely to ignore worker, minority or women’s rights.

Another bone of likely contention: Trump can also be expected to push hard on a law-and-order agenda that will fly in the face of efforts to reform the criminal justice system. After recognizing its own disastrous infatuation with over-incarceration, California has embraced recent initiatives to reduce the sentences of nonviolent offenders and to ban labor market discrimination against former felons. This will be another policy battleground and will provide the opportunity to showcase a national counter-example to Trump’s fear-driven attempt to strengthen law enforcement at the expense of civil rights.

The Challenges Ahead

While California is well positioned to lead the charge against Trump, the success of these efforts is not inevitable. The challenges ahead include the risks of factionalism, the rise of extremism and the need to craft a new relationship with business forces.

When Richard Nixon was elected president in 1968, left-of-center political forces fragmented badly, expediting the rise of conservatism, which in turn has dominated national politics ever since. California’s progressive movement does not appear to be headed in this direction, but Trump has proven himself a master at dividing and conquering, and he will no doubt pursue the same strategy as president. He will also attack on many fronts, creating a strain on resources and the possibility of destructive in-fighting.

And although California may currently vote progressive, it is also no stranger to extremism. The descendants of the John Birch Society are alive and well, the Tea Party has its Golden State adherents and it’s worth recalling that Rush Limbaugh got his talk-radio start in Sacramento. With Trump in the White House, the right in general and the politics of hate in particular may well get a boost. The inland and rural regions of California have been the traditional breeding grounds for white nationalism, but the alt right is also operating in the state’s urban population centers.

Finally, some business leaders, lured by tax cuts, deregulation and union-busting, will be supportive of the Trump agenda even if they are repulsed by the anti-immigrant and anti-trade rhetoric. Other business leaders have a more balanced perspective, recognizing that a strong and sustainable economy requires that wages rise, racial inclusion occurs and the planet is protected. Progressives will have to figure out where alliances are possible and effective. This is particularly important in California, where some “business Democrats” often side with corporate lobbies on critical environmental and labor legislation. While several such elected officials found themselves unelected in 2016, others may be emboldened by Trump and his brand of scorched-earth capitalism. This could pose a serious risk to progressive priorities, even with the Democratic super-majority in the state legislature.

Looking Forward

As Trump and his allies wage war on all fronts, a weariness may set in – and along with it a tendency to take refuge in California’s different political reality. That would be a very costly mistake. Not only must California help the country fight back, it must not take its own prolific advances for granted.

After all, it was only two decades ago that we were convulsed by our own anti-immigrant hysteria in the form of Proposition 187, a law that sought to strip all services, including education, from undocumented immigrants. It passed with an overwhelming majority, and the state soon followed with an electoral attack on affirmative action and aggressive efforts to criminalize black and Latino youth. And even as the nation voted for Obama in 2008, California voted for Proposition 8, stripping the rights of same-sex couples to marry.

We’ve come out of our political morass, not just because time has passed and demographics have shifted, but also because of a new hard-fought and hard-forged politics and social compact. With the nation now experiencing its own “Prop 187 moment,” we have a responsibility to help others avoid our own mistakes and accelerate the country’s path to a more inclusive future.

We will also need to lead by example. For all of California’s political progress, we still have one of the highest levels of inequality in the country, some of the most polluted communities, huge shortages of affordable housing, a massive homeless population, ongoing police brutality and one of the nation’s highest number of people caught up in the criminal justice system.

Even in the Trump era, California can tackle these problems – but it will require old relationships and new allies, solid institutions and innovative strategies, long-standing-values and a fresh and compelling vision of our future. All this will require a clarity of purpose, a level of passion and strength of resolve that few of us have been called on to summon.

So get ready. The battle begins now.

 

 

 

Dr. Manuel Pastor is Professor of Sociology and American Studies & Ethnicity at the University of Southern California where he also directs the Program for Environmental and Regional Equity and co-directs USC’s Center for the Study of Immigrant Integration. His most recent books include Just Growth: Inclusion and Prosperity in America’s Metropolitan Regions (Routledge 2012; co-authored with Chris Benner) Uncommon Common Ground: Race and America’s Future (W.W. Norton 2010; co-authored with Angela Glover Blackwell and Stewart Kwoh), and This Could Be the Start of Something Big: How Social Movements for Regional Equity are Transforming Metropolitan America (Cornell 2009; co-authored with Chris Benner and Martha Matsuoka). 

50 Years Later, Here Are 3 Big Ways the Summer of Love Is Still with Us

CULTURE
The ideals of the Human Be-In remain woven through American culture.

Members of Jefferson Airplane performing at the KFRC Fantasy Fair and Magic Mountain Music Festival in Marin County, California, United States in June, 1967
Photo Credit: Bryan Costales ©2009 Bryan Costales, licensed CC BY-SA 3.0-Bcx.Org: http://www.bcx.org/photos/events/concerts/ffair/?file=KFRCFantasyFair19670603_7464SBCX.jpg, Wikimedia Commons CC BY-SA 3.0; Jefferson Airplane, Marin County, CA, 1967

Born of the simple intention to unite people in the name of connection and love, an event on the polo fields of Golden Gate Park half a century ago sparked a cultural paradigm shift unrivaled in the U.S. since World War II. But this time it was the antithesis to war that would reshape America: the Summer of Love.

The impetus for that fateful summer was called the Human Be-In, in a nod to the peaceful sit-ins waged by university students in the preceding years against racial segregation. In the years surrounding the Summer of Love, the frigid prospect of nuclear war loomed, minorities and women were rising up against myriad oppressions and the government was cracking down on mind-altering substances like LSD and cannabis. The Summer of Love and its values of free expression, love, peace, activism, and psychedelic exploration of consciousness were the backlash.

The early acid-rock sounds of Grateful Dead, Jefferson Airplane, Big Brother and the Holding Co. and others mixed with the words of boundary-pushing poets and psychedelic pioneers to gather 75,000 or so young people in the park. They spilled out into the five-block radius of the Haight-Ashbury neighborhood with fresh smells, sounds and ideals that came to shape the era’s iconography.

Bill McCarthy, founder of the Unity Foundation, co-produced a 50-year anniversary celebration of the Be-In in San Francisco this week.

“It’s important that we celebrate the past, celebrate the victories, triumphs and challenges of the past, but at the same time look at what’s happening today,” he said. “We’re saying yes, in 1967 this all happened, so let’s rededicate ourselves to that. But let’s also see what’s happening today that can build community, build empathy with people all over the world that are struggling.”

He said given the current political climate, with Trump’s impending inauguration and all that’s bound to come with it, there is more reason than ever to “activate ourselves.” He said when you take the “long view” from 1967 to now, it’s obvious that we’re moving forward.

“The values we treasure and movements we created are still stronger than they ever have been,” he said. “When there’s darkness in the world, the thing that feeds darkness is fear. The last thing we should do right now is be fearful.”

Fifty years since the Be-In, as the digital age re-molds the economy, values and skylines of San Francisco and beyond, the ideals of the Human Be-In remain woven through our culture in ways we rarely pause to acknowledge. From the sounds of activism to the shape of companies to that box of free stuff out on the corner, many hippie dreams are alive and well in 2017.

Annie Oak, founder of the Women’s Visionary Congress, a nonprofit dedicated to exploring altered states of consciousness, says the prevalence of psychedelics in the 1960s and ’70s is directly related to the ideas put forth by young people at the time.

“These substances allowed people to think way outside the box and also question social systems,” she said. “The hippies here really put forward a liberal political consciousness and humanist values that impacted society.”

Here are three modern cultural shifts that have their roots in the psychedelic Summer of Love.

1. Collectivism, from communal living to open-source software. 

Annie Oak says communal living, which is everywhere now, was born in the Summer of Love. So, she says, are collectivist projects like the Haight-Ashbury Free Clinic, which is still in operation, offering medical treatment free of charge.

“These ideas of collectivism really launched larger ideas like the open-source software movement and creative commerce,” she notes. “These are ideas that are commonplace now.”

Michael Gosney has produced Digital Be-Ins over the years at Be-In anniversaries to pay homage to the initial Be-In of ’67 and to look to the future. He was involved in early desktop publishing and digital media in San Francisco in the late ’80s. It was the dawn of personal computers, and his magazine was covering early Macintosh creativity. He describes the publication as a “nexus of artists and tech people coming together.”

Between ’85 and ’92 he observed that psychedelics—which made their debut in modern culture during the Summer of Love—heavily influenced the creation of digital media. He says the software programmers who worked on digital music, animation, photography and video were influenced by psychedelics.

“I noticed the preponderance of psychedelic influence in the programming community with the engineers that were inventing these new tools,” he said. “Psychedelic influence was extremely powerful, and really that’s how people were seeing the vision of digital networks and so forth. It very much came out of the influence of psychedelics.”

2. Activism and alternative media.

The mainstream newspapers in 1967 were not about to promote the Be-In event. An underground, independent zine called the Oracle, produced for free in Haight-Ashbury, was the first to cover what would become the catalyst for the hippie days and cultural revolution.

“The Oracle was the first to write about the Be-In, so it helped launch the alternative press,” Annie Oak of WVC says. “And there were also underground radio stations that helped promote the events, so the whole alternative media movement really was moved along by the Be-In and the Summer of Love.”

Oak notes that the environmental movement was also taking place in Haight-Ashbury at the time. The local community organized in the ’60s against a proposed freeway project that would run through the panhandle portion of Golden Gate park, connecting Golden Gate Bridge with the Peninsula. The community organized in protest on the same polo grounds where the initial Be-In took place, and their uprising eventually killed the freeway project. This was in 1964, but Oak says the power of community organizing was a key motif of the ’67 Be-In and its cultural imprints.

“The freeway was one of the important predecessors of the Be-In activism and gathering that took place also in the polo grounds three years later, and the later protests against the war,” she said. “Timothy Leary kind of set the tone with his famous phrase, turn on, tune in, drop out, which kind of set the tone for the Be-In. But what really happened here is people kind of turned on to activism, and then took over. They took over big sections of our culture and changed it in positive ways.”

Oak notes the irony that because of the proposed freeway project, which would have displaced many residents, the Haight-Ashbury neighborhood harbored lower-income residents like students and minorities. As the years passed following the Summer of Love, the neighborhood became an iconic tourist destination. Today, as wealthy techies have been drawn to the city for its iconic allure, lower-income residents are priced out.

“Haight-Ashbury sort of personified the transition between the beat generation—the poets and jazz hipsters that were embracing a lot of the black jazz culture—and the hippies, who then kind of came into what was then a black neighborhood,” Oak says. “And, to some degree, later that movement ironically gentrified the neighborhood, and a lot of the black community then left. It was a very complex form of gentrification, and that gentrification is still happening.”

Bill McCarthy of Unity Foundation said in planning the Be-In anniversary this year he had a conversation with author and historian Dennis McNally about how the mainstream media of the time co-opted the Summer of Love.

“[McNally] was saying… the media created the hippie and created this—how we should look at the culture, and that was part of the downfall,” McCarthy said. “And to that I said, well, Dennis, the beautiful thing now is we can create our own media. We’re not saddled by ABC, NBC, CBS, whatever anymore. We have our own media vehicles.”

3. Cannabis legalization and psychedelic science are influencing mainstream medicine.

Two years prior to the Summer of Love, the psychedelic beloved by many young people who associated LSD with spiritual enlightenment and creative expression was criminalized, like cannabis before it. Retaliating against the Summer of Love and the progressive concepts it launched, President Richard Nixon waged the racist, violent (and ultimately failed) war on drugs that vilified psychedelics and cannabis in the public eye for decades.

Cannabis and most psychedelics remain federally illegal to this day, though the pendulum is starting to swing back. Eight U.S. states have legalized weed for adult use, and this decade the first U.S. government-approved human trials assessing psychedelics in tandem with psychotherapy treatment are showing overwhelmingly positive results. Most of the studies are sponsored by the Multidisciplinary Association for Psychedelic Studies (MAPS), a nonprofit group founded by Rick Doblin in 1986.

Doblin said the Summer of Love set society on a path toward important cultural shifts.

“Since the iconic Summer of Love, 50 years ago, marijuana has gone from being a heavily demonized drug used by rebellious youth to a medicine, with one of the largest growing demographics being elderly people,” he said. “Psychedelics now are being investigated as tools used in scientific research for therapeutic uses, a catalyst of spirituality, art and creativity, acceptance of death and we are now facing their legitimization and acceptance as medical tools.”

In addition, MAPS is conducting studies of MDMA’s potential to help treat post-traumatic stress disorder, researching the use of ibogaine for opiate addiction and “implementing ayahuasca research for PTSD and broadening psychedelic harm reduction outreach for more widespread acceptance into our culture,” Doblin said. Similar to the path of cannabis in culture, he predicts psychedelics will first be accepted medicinally, then for their broadened spiritual and cultural uses.

“One day people will take for granted that psychedelics are legal, are highly prized, and help people make positive contributions to society,” he said.

April M. Short is a yoga teacher and writer who previously worked as AlterNet’s drugs and health editor. She currently works part-time for AlterNet, and freelances for a number of publications nationwide. 

http://www.alternet.org/culture/50-years-later-here-are-3-big-ways-summer-love-still-us?akid=15118.265072.82O0Sv&rd=1&src=newsletter1070698&t=14

The Oakland fire tragedy and the housing crisis in America

161204-oakland-fire-1908_94c6b6892e59d0ad903149c2cedf7bb8-nbcnews-ux-2880-1000

7 December 2016

The death toll from last Friday’s fire at a warehouse in Oakland, California stands at 36, with 85 percent of the burnt-out structure having been searched. Among the dead, some of whom have yet to be identified, are young people and artists who made their home in the 86-year-old sprawling two-story structure known as the Ghost Ship. The building was leased to an artists’ collective in the Fruitvale district of the city.

It was the deadliest building fire in the US since a Rhode Island nightclub fire in 2003, which claimed 100 lives. The tragedy has horrified the San Francisco Bay Area and the world, leaving many asking how such an event could take place in 21st century America.

It is unclear at this point whether criminal charges will be filed against the owner of the building, Chor Nar Siu Ng, who owns several other blighted properties in Oakland, or against Derick Ion Almena, who leased the property, lived there with his wife and three children, and ran the artists’ collective. Looking for an individual to blame, the media has launched a campaign against Almena in particular, who lost many people he knew in the blaze.

Authorities have pointed to electrical problems and the lack of basic fire safety provisions in the dilapidated structure. At the root of the tragedy, however, lies the dysfunctional character of American capitalism, including a housing crisis born of poverty, social inequality, and years of neglect by government authorities.

The Bay Area, long known as a haven for artists and students, is now largely unaffordable for workers and young people. Along with the tech boom of the last six years, housing prices have skyrocketed. Warehouses and lofts in San Francisco’s former industrial areas have given way to high-end condos and workspaces to house tech start-ups and their employees. More than 2,000 people are evicted annually in the city.

This has pushed artists and others struggling to find affordable housing to Oakland, across the San Francisco Bay, and beyond. Now these areas are also increasingly unaffordable, with the median cost of available rentals in Oakland standing at $3,000 a month, far beyond what is affordable for most Americans. People living in buildings such as the Ghost Ship are faced with the choice of living in substandard housing or being homeless.

Speaking to CBS, a city councilor from Fruitvale estimated that there are some 200 warehouses in Oakland “that have no papers, no permit, no fire code, nothing.” If occupied, these structures are disasters waiting to happen. And while building inspectors apparently ignore these deathtraps, no measures are taken to alleviate the growing crisis that leads to their use as housing.

The Bay Area’s economy has spawned a small army of billionaires, with 50 of them making it onto the Forbes 400 list of richest Americans in 2016. Oakland itself is increasingly socially polarized, home to the fifth largest cluster of “elite zip codes” in the US, ranked by a combination of high income and education level attained. At the same time, more than 800,000 people in the region live below the poverty line.

The housing crisis in the Bay Area mirrors that of metropolitan areas across the country. The Los Angeles Times reports that more than 20,000 rent-controlled apartments in LA have been taken off the market since 2011 to make way for pricey homes and condos for the wealthy, leading to hundreds of evictions this year.

Evictions are taking place not only in thriving real estate markets like San Francisco, New York and Los Angeles, but also in places like Milwaukee and St. Louis, where deindustrialization and unemployment, combined with wages that do not keep pace with the cost of living, are driving people out of their homes.

According to a report released last year by Harvard University titled “Projecting Trends in Severely Cost-Burdened Renters,” by 2025 nearly 15 million US households will devote more than half of their income to rent. Those unable to keep pace with their rent or mortgage payments will find themselves evicted and possibly homeless.

The federal government has long since abandoned any responsibility for the provision of decent housing, leading to disasters like that in Oakland last week. According to the US Fire Administration, an organization that tracks fire deaths based on media reports, there were 2,290 fire deaths in the US in 2015, many of them in mobile homes or other substandard housing.

The first US national housing legislation, passed in 1937, went beyond providing low-cost public housing and was aimed at improving the lagging economy by funding jobs to build affordable housing. Public housing today has largely ceased to exist, with units sold off to developers to turn a quick profit, and those in need of housing waiting years if not decades for openings to use their Section 8 housing vouchers.

The Obama administration, following the Bush and Clinton administrations before it, has made no pretense of establishing a public works program to address the woeful state of infrastructure in the US—whether in housing, roads, bridges, energy grids or in other vital areas.

President-elect Donald Trump has made clear his attitude toward the housing crisis with his nomination of Ben Carson to run the Department of Housing and Urban Development. Carson, a retired neurosurgeon with no professional housing policy experience, has declared his hostility to the entire concept of public housing and social provision in general, stating: “It really is not compassionate to pat people on the head and say, ‘There you poor little thing, I’m going to take care of all your needs, your health care, your food and your housing, don’t you worry about anything’” (Conservative Political Action Conference, February 26, 2015).

The Socialist Equality Party calls for an immediate halt to foreclosures and evictions and for the provision of billions of dollars to provide decent, low-cost housing to those in need. Housing is a social right that can be assured only by placing the home construction and financing industry under public ownership.

For tragedies like that in Oakland to be averted in the future, public funds must be poured into the construction of new homes for working families. Such a project can be undertaken only under a workers government based on a socialist program, which treats affordable housing as a basic human right, not a privilege reserved for the wealthy.

Kate Randall

http://www.wsws.org/en/articles/2016/12/07/pers-d07.html