Economic Bubbles Take From the Poor, Give to the Rich

sachs-bubbles

At the Economic Populist Blog, Robert Oak posted an excellent analysis of the Pew Research report, A Rise in Wealth for the Wealthy; Declines for the Lower 93%, based on Census data on wealth taken since the so-called economic recovery after 2009. Oak highlighted one of the most important findings of the report:

During the first two years of the nation’s economic recovery, the mean net worth of households in the upper 7% of the wealth distribution rose by an estimated 28%, while the mean net worth of households in the lower 93% dropped by 4%.

In other words, what the report shows is that there was never an economic recovery for most people other than the wealthy 1%. The economic bubble and resultant policies effectively served as a mechanism to transfer wealth from the poor to the wealthy.

According to Michael Snyder at the Economic Collapse blog, it’s extremely likely that we’re about to witness another massive transfer of wealth to the 1% judging from the following 15 signs:

#1 Bob Shiller, one of the winners of this year’s Nobel Prize for economics, says that “bubbles look like this” and that he is “most worried about the boom in the U.S. stock market.”

#2 The total amount of margin debt has risen by 50 percent since January 2012 and it is now at the highest level ever recorded.  The last two times that margin debt skyrocketed like this were just before the bursting of the dotcom bubble in 2000 and just before the financial crisis of 2008.  When this house of cards comes crashing down, things are going to get very messy…

“When the tablecloth gets pulled out from under the place settings, you’re going to have a lot of them crash and smash on the floor,” said Uri Landesman, president of Platinum Partners hedge fund. “That margin’s going to get pulled and everyone’s going to have to cover. That’s when you get really serious corrections.”

#3 Since the bottom of the market in 2009, the Dow has jumped 143 percent, the S&P 500 is up 165 percent and the Nasdaq has risen an astounding 213 percent.  This does not reflect economic reality in any way, shape or form.

#4 Market research firm TrimTabs says that the S&P 500 is “very overpriced” right now.

#5 Marc Faber recently told CNBC that “we are in a gigantic speculative bubble”.

#6 In the United States, Google searches for the term “stock bubble” are at the highest level that we have seen since November 2007 – just before the last stock market crash.

#7 Price to earnings ratios are very high right now…

The Dow was trading at 17.8 times the past four quarters of earnings of its 30 components, according to The Wall Street Journal on Friday. That was up from 13.7 times its earnings a year ago. The S&P 500 is trading at 18.7 times earnings. The Nasdaq-100 Index is trading at 21.5 times earnings. At the very least, the ratios are signaling that stock prices are rich.

#8 According to CNBC, Pinterest is currently valued at more than 3 billion dollars even though it has never earned a profit.

#9 Twitter is a seven-year-old company that has never made a profit.  It actually lost 64.6 million dollars last quarter.  But according to the financial markets it is currently worth about 22 billion dollars.

#10 Right now, Facebook is trading at a valuation that is equivalent to approximately 100 years of earnings, and it is currently supposedly worth about 115 billion dollars.

#11 Howard Marks of Oaktree Capital recently stated that he believes that “markets are riskier than at any time since the depths of the 2008/9 crisis”.

#12 As Graham Summers recently noted, retail investors are buying stocks at a level not seen since the peak of the dotcom bubble back in 2000.

#13 David Stockman, a former director of the Office of Management and Budget under President Ronald Reagan, believes that this financial bubble is going to end very badly…

“We have a massive bubble everywhere, from Japan, to China, Europe, to the UK.  As a result of this, I think world financial markets are extremely dangerous, unstable, and subject to serious trouble and dislocation in the future.”

#14 Bob Janjuah of Nomura Securities believes that there “could be a 25% to 50% sell off in global stock markets” over the next couple of years.

#15 According to Tyler Durden of Zero Hedge, the U.S. stock market is repeating a pattern that we have seen many times before.  According to him, we are experiencing “a well-defined syndrome of ‘overvalued, overbought, overbullish, rising-yield’ conditions that has appeared exclusively at speculative market peaks – including (exhaustively) 1929, 1972, 1987, 2000, 2007, 2011 (before a market loss of nearly 20% that was truncated by investor faith in a new round of monetary easing), and at three points in 2013: February, May, and today.”

Read the full article here: http://theeconomiccollapseblog.com/archives/15-signs-that-we-are-near-the-peak-of-an-absolutely-massive-stock-market-bubble

At the Point of No Return

decker-joe-convergence-2

By Julian Rose for Waking Times

The wrong people are in charge… that’s pretty obvious. But what is not so obvious is how they got there? And once having found an open gate, why have we left them to graze the best pastures while we grovel around in the barren fallow?

A very strange phenomenon…

This World is run by those of whom the great majority have absolutely no qualifications to be at the helm of anything – not even a small rowing boat. Yet, somehow or other, there they are perched in their palaces, surveying their empires – while simultaneously engaging in the systematic degradation of planet Earth.

Doesn’t matter whether they are generals, headmasters, corporate executives, CEOs of banks, media moguls, ministers or prime ministers, or just about any big bosses – they have the distinction of all acting in unison. While by contrast, the great majority of intelligent and able bodied citizens of this planet, only manage to act – or react – in sporadic and discordant bursts; if at all.

The current controlling masters – and it hasn’t changed much over many centuries – have a commonality of intent: to extract the last ounces of profit and prestige from any and all assets and opportunities that fall into their grasp.

Yet even that isn’t enough for some of them. Profits get a bit boring when they come in the tens of millions year after year, and one has occupied the prime suite at Claridges for the past six months. No, there always needs to be just one more thing that can be ‘owned’ and brought under control, so as to satisfy the false agrandissement that is part and parcel of an endless, and ultimately fruitless, attempt to become omnipotent and untouchable by ordinary mortals.

Such is the aphrodisiac called ‘power’.

Time and again, those who suffer most from a sense of being inwardly dispossessed are the very  ones to seek, as compensation, the maximum level of outer possessiveness. And this is the mechanism whereby the wrong people get to be in charge.

Ironically, many who do not suffer such delusional power urges are quite happy to just tick along fulfilling their aspirations and daily needs as best they can. Yet in doing so, they unwittingly allow the magalomaniacs a direct route to the seats of power.

Those who are secure enough in themselves to take a responsible attitude towards the life around them seldom come forward to take-on positions of authority and civil responsibility. Their preference is to leave it to others – and in too many cases these ‘others’ often harbour barely disguised ulterior motives.

Yet we look on, aghast, as our world is torn apart by duelling crooks and madmen, each more desperate than the other for the top job in the race for planetary ecocide. Each more desperate than the other to fill any power vacuum that might emerge. Each more desperate than the other to hold a cosh over the disinterested daily workers who struggle on, trying not to notice how bad it’s gotten.

Where do you belong in this mad scrum?

The wrong people are in charge and the right people don’t want to bother themselves unduly to do anything about it. That just about sums-up the dire state of our post industrial ‘civilisation’. Something has to give…

The question is what?

Will a critical mass of the 99% finally act to bring back some genuine self autonomy through wresting control from the 1%?

Or will the 1% finally complete their annihilation job, trashing our planetary assets and crushing our human propensities once and for all? That is the question.

But none of us are free to sit back and play at second guessing the outcome. We are all in there. We are part of the pack. Our every move, whether we see it or not, is either promoting or resisting the despot’s master plan. There is no such thing as being ‘in between’ in this game. The fence you once sat on is broken. The wires are hanging limp. There is no no-man’s-land left to hide in.

At some point soon, those who are fit to lead must take over from those who are unfit. It may be a bloodless coup – or it may be a bloody insurrection. One way or another, the shift has to happen.

Forget about Divine intervention. There will be no Divine intervention unless and until there is a very visible human determination already out of the starting blocks and heading for the finishing line. Only then is it possible that higher energies will join the race to bring justice back to this battered World.

We are approaching the point of no return. If we don’t respond to the myriad calls for help that are echoing around this World at an ever-increased velocity each day, then we will be condemning ourselves – and those who call upon us – to being forever stranded upon a desolate and barren shore.

That help starts with helping each other to break free from our learned and self-induced state of fear and pacifism. A combination that pretty much guarantees an unwillingness to act. An unwillingness to act even when presented with the choice of participating in a mass genocide or opposing it.

This unwillingness is giving voice to the notion that ‘no action’ is the spiritual choice of the knowing. That to retire into a cul-de-sac of meditation and inward-looking self examination can ‘change the world’ by dint of a shifted value focus. Can serve to hermetically seal the self away from the trials and tribulations of the outer world and thereby help avoid any confrontation with that which demands a full and spontaneous response.

Confrontation, in this view, is a negative, reactionary manifestation that undermines ‘peace’ and the supposed tranquility of a chimeric world, which takes over from rational observations and becomes the new reality. A ‘virtual reality’.

This is a deeply flawed and dangerous ethos. For it splits in half that which is whole and sets the two halves in opposition to each other.

We are ‘of nature’ not above or outside it. We go forth and we return. That is the Tao. Universal forces all dance to this tune. Breath, ocean waves, cycles of birth and death, growth and decay, all is in motion and at rest, all the time. There is no contradiction.

Outward action and inward contemplation are two halves of one whole. They are synonymous. One should move between the two constantly and joyously.

“When injustice become law, resistance becomes duty”

Well, injustice has become law – yet resistance remains doggedly muted, and the search for an escape route remains the preferred option.

Cultivate spirit, wisdom and deep awareness – yes. Yet not as an alternative to toppling our oppressors from their corporate thrones, but as part of it.

Don’t be fooled. There is a war on. We are all called to the front. Just as the white corpuscles of our bodies are fighting off attempts by the pathogens to take hold – all the time. We should be doing the same – all the time.

Everyday we should be conjuring-up and putting into affect actions to end the draconian government/corporate dictatorship that continues to herd great swathes of humanity ever faster towards a sheer and genocidal cliff.

We can have no ‘peace’ until the criminals at the master control consulate are ejected from their padded leather chairs and are forced to confront the true price of their obscene power games.

Peace and enlightenment, at the individual level, are only possible if we are engaged in this battle. The battle to rid both ourselves and this planet of that which seeks to dominate and destroy the true well-spring of life.

The road to victory also requires the wise and aware to form a council of responsible oversight to step-in to the void once the despots are dethroned. That is an essential ingredient of any uprising determined to manifest genuine justice.

The lessons of history teach that fickle rebellion simply replaces one bunch of power predators with another. That is no longer an option; we are now at the point of no return. This time we have to get it right.

Footnote: some may see this as being at odds with my essay “Reverse Engineering the Illuminati Mind Set,” I don’t believe it is. The action I speak of here does not eclipse the need to draw deeply upon compassion. However, to exercise compassion one needs to be in a position of strength, not slavery.

About the Author

Julian is a committed international activist, writer, farmer and actor. He is an early pioneer of UK organic farming methods and is currently involved in the front line of efforts to keep Poland free from genetically modified organisms. Julian is President of The International Coalition to Protect the Polish Countryside. His book Changing Course for Life can be purchased on www.changingcourseforlife.info. His latest book In Defence of Life – a Radical Reworking of Green Wisdom is available at Amazon or can be requested on http://www.julianrose.info/

This article is offered under Creative Commons license. It’s okay to republish it anywhere as long as attribution bio is included and all links remain intact.

Saturday Matinee: The Last Angel of History

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Notes from Icarus Films:

John Akomfrah, director of Seven Songs of Malcolm X, returns with an engaging and searing examination of the hitherto unexplored relationships between Pan-African culture, science fiction, intergalactic travel, and rapidly progressing computer technology.

This cinematic essay posits science fiction (with tropes such as alien abduction, estrangement, and genetic engineering) as a metaphor for the Pan-African experience of forced displacement, cultural alienation, and otherness.

Akomfrah’s analysis is rooted in an exploration of the cultural works of Pan-African artists, such as funkmaster George Clinton and his Mothership Connection, Sun Ra’s use of extraterrestrial iconography, and the very explicit connection drawn between these issues in the writings of black science fiction authors Samuel R. Delaney and Octavia Butler.

Included are interviews with black cultural figures, from musicians DJ Spooky, Goldie, and Derek May, who discuss the importance of George Clinton to their own music, to George Clinton himself. Astronaut Dr. Bernard A. Harris Jr. describes his experiences as one of the first African-Americans in space, while Star Trek actress Nichelle Nichols tells of her campaign for a greater role for African-Americans in NASA. Novelist Ishmael Reed and cultural critics Greg Tate and Kodwo Eshun tease out the parallels between black life and science fiction, while Delaney and Butler discuss the motivations behind their choice of the genre to express ideas about the black experience.

In keeping with the futuristic tenor of the film, the interviews are intercut with images of Pan-African life from different periods of history, jumping between time and space from the past to the future to the present, not unlike the mode of many rock videos or surfing the Internet.

Buy Nothing Day

Via Adbusters:

Freedom is having time to live!

November 29 is Buy Nothing Day!

Today, humanity faces a stark choice: save the planet and ditch capitalism, or save capitalism and ditch the planet.
– Fawzi Ibrahim

Freedom is having time to live.
– Uruguay’s president, Jose Mujica

Here it comes again. Another Black Friday of shoppers being trampled to death at the entrance of Target, Bed Bath & Beyond and Walmart. And then, hallelujah! … the Christmas shopping season begins.

This year, let’s rise above it! It’s time to start challenging the entrenched values of capitalism, which have hijacked our lives and our cultural rituals for far too long. ’Tis the season to make a pact with ourselves … to start changing our own lives so that we can collectively face the gigantic psycho-financial-eco crises of our time.The journey toward a sane sustainable future begins on a deeply personal and individual level with a single, voluntary step: make a vow to yourself to go cold turkey on consumption this Friday (in North America – Saturday for the rest of the world). Do not buy anything for 24 hours … and watch what happens … you just might have an unexpected, emancipatory epiphany!

Buy Nothing Day is legendary for instigating this type of personal transformation. As you suddenly remember what real living is all about, you may sense an upsurge of radical empowerment and feel a strange magic creeping back into your life.

Join millions of us in over 80 countries on November 29/30 and find out for yourself what it feels like.

And why not play some jazz while you are at it!? Put up Buy Nothing Day posters in your office, neighborhood, on campus … organize a credit card cut up, pull off a Whirl-mart at a box store, or put on an anonymous mask and walk zombie-like through your local mall.

Then, if you feel inspired, take the next step … for generations, the holidays have been hijacked by commercial forces … this year, why not take the season back? Have a heart to heart with your family and decide to celebrate Christmas, Chanukkah and Kwanzaa in a whole new way. Go for it!

This year, let’s throw a well-honed, fun-filled monkey wrench into the doomsday machine!

The Real Thanksgiving

Thanksgiving

It’s always nice to celebrate special occasions like holidays with loved ones, and while it’s good to be thankful for what one has, we should also feel discontent for what so many do not have or for what they’ve had taken away from them. Sometimes ignorance may seem like bliss, but the pain of reality is good for the soul, potentially liberating, and necessary to avoid sugarcoating or forgetting atrocities committed against any group of people (to hopefully prevent repeats in the future).

An excerpt from The Hidden History of Massachusetts by Dr. Tingba Apidta:

Much of America’s understanding of the early relationship between the Indian and the European is conveyed through the story of Thanksgiving. Proclaimed a holiday in 1863 by Abraham Lincoln, this fairy tale of a feast was allowed to exist in the American imagination pretty much untouched until 1970, the 350th anniversary of the landing of the Pilgrims. That is when Frank B. James, president of the Federated Eastern Indian League, prepared a speech for a Plymouth banquet that exposed the Pilgrims for having committed, among other crimes, the robbery of the graves of the Wampanoags. He wrote:

“We welcomed you, the white man, with open arms, little knowing that it was the beginning of the end; that before 50 years were to pass, the Wampanoag would no longer be a free people.”

But white Massachusetts officials told him he could not deliver such a speech and offered to write him another. Instead, James declined to speak, and on Thanksgiving Day hundreds of Indians from around the country came to protest. It was the first National Day of Mourning, a day to mark the losses Native Americans suffered as the early settlers prospered. This true story of “Thanksgiving” is what whites did not want Mr. James to tell.

What Really Happened in Plymouth in 1621?

According to a single-paragraph account in the writings of one Pilgrim, a harvest feast did take place in Plymouth in 1621, probably in mid-October, but the Indians who attended were not even invited. Though it later became known as “Thanksgiving,” the Pilgrims never called it that. And amidst the imagery of a picnic of interracial harmony is some of the most terrifying bloodshed in New World history.

The Pilgrim crop had failed miserably that year, but the agricultural expertise of the Indians had produced twenty acres of corn, without which the Pilgrims would have surely perished. The Indians often brought food to the Pilgrims, who came from England ridiculously unprepared to survive and hence relied almost exclusively on handouts from the overly generous Indians-thus making the Pilgrims the western hemisphere’s first class of welfare recipients. The Pilgrims invited the Indian sachem Massasoit to their feast, and it was Massasoit, engaging in the tribal tradition of equal sharing, who then invited ninety or more of his Indian brothers and sisters-to the annoyance of the 50 or so ungrateful Europeans. No turkey, cranberry sauce or pumpkin pie was served; they likely ate duck or geese and the venison from the 5 deer brought by Massasoit. In fact, most, if notall, of the food was most likely brought and prepared by the Indians, whose 10,000-year familiarity with the cuisine of the region had kept the whites alive up to that point.

The Pilgrims wore no black hats or buckled shoes-these were the silly inventions of artists hundreds of years since that time. These lower-class Englishmen wore brightly colored clothing, with one of their church leaders recording among his possessions “1 paire of greene drawers.” Contrary to the fabricated lore of storytellers generations since, no Pilgrims prayed at the meal, and the supposed good cheer and fellowship must have dissipated quickly once the Pilgrims brandished their weaponry in a primitive display of intimidation. What’s more, the Pilgrims consumed a good deal of home brew. In fact, each Pilgrim drank at least a half gallon of beer a day, which they preferred even to water. This daily inebriation led their governor, William Bradford, to comment on his people’s “notorious sin,” which included their “drunkenness and uncleanliness” and rampant “sodomy”…

The Pilgrims of Plymouth, The Original Scalpers

Contrary to popular mythology the Pilgrims were no friends to the local Indians. They were engaged in a ruthless war of extermination against their hosts, even as they falsely posed as friends. Just days before the alleged Thanksgiving love-fest, a company of Pilgrims led by Myles Standish actively sought to chop off the head of a local chief. They deliberately caused a rivalry between two friendly Indians, pitting one against the other in an attempt to obtain “better intelligence and make them both more diligent.” An 11-foot-high wall was erected around the entire settlement for the purpose of keeping the Indians out.

Any Indian who came within the vicinity of the Pilgrim settlement was subject to robbery, enslavement, or even murder. The Pilgrims further advertised their evil intentions and white racial hostility, when they mounted five cannons on a hill around their settlement, constructed a platform for artillery, and then organized their soldiers into four companies-all in preparation for the military destruction of their friends the Indians.

Pilgrim Myles Standish eventually got his bloody prize. He went to the Indians, pretended to be a trader, then beheaded an Indian man named Wituwamat. He brought the head to Plymouth, where it was displayed on a wooden spike for many years, according to Gary B. Nash, “as a symbol of white power.” Standish had the Indian man’s young brother hanged from the rafters for good measure. From that time on, the whites were known to the Indians of Massachusetts by the name “Wotowquenange,” which in their tongue meant cutthroats and stabbers.

Who Were the “Savages”?

The myth of the fierce, ruthless Indian savage lusting after the blood of innocent Europeans must be vigorously dispelled at this point. In actuality, the historical record shows that the very opposite was true.

Once the European settlements stabilized, the whites turned on their hosts in a brutal way. The once amicable relationship was breeched again and again by the whites, who lusted over the riches of Indian land. A combination of the Pilgrims’ demonization of the Indians, the concocted mythology of Eurocentric historians, and standard Hollywood propaganda has served to paint the gentle Indian as a tomahawk-swinging savage endlessly on the warpath, lusting for the blood of the God-fearing whites.

But the Pilgrims’ own testimony obliterates that fallacy. The Indians engaged each other in military contests from time to time, but the causes of “war,” the methods, and the resulting damage differed profoundly from the European variety:

o Indian “wars” were largely symbolic and were about honor, not about territory or extermination.

o “Wars” were fought as domestic correction for a specific act and were ended when correction was achieved. Such action might better be described as internal policing. The conquest or destruction of whole territories was a European concept.

o Indian “wars” were often engaged in by family groups, not by whole tribal groups, and would involve only the family members.

o A lengthy negotiation was engaged in between the aggrieved parties before escalation to physical confrontation would be sanctioned. Surprise attacks were unknown to the Indians.

o It was regarded as evidence of bravery for a man to go into “battle” carrying no weapon that would do any harm at a distance-not even bows and arrows. The bravest act in war in some Indian cultures was to touch their adversary and escape before he could do physical harm.

o The targeting of non-combatants like women, children, and the elderly was never contemplated. Indians expressed shock and repugnance when the Europeans told, and then showed, them that they considered women and children fair game in their style of warfare.

o A major Indian “war” might end with less than a dozen casualties on both sides. Often, when the arrows had been expended the “war” would be halted. The European practice of wiping out whole nations in bloody massacres was incomprehensible to the Indian.

According to one scholar, “The most notable feature of Indian warfare was its relative innocuity.” European observers of Indian wars often expressed surprise at how little harm they actually inflicted. “Their wars are far less bloody and devouring than the cruel wars of Europe,” commented settler Roger Williams in 1643. Even Puritan warmonger and professional soldier Capt. John Mason scoffed at Indian warfare: “[Their] feeble manner…did hardly deserve the name of fighting.” Fellow warmonger John Underhill spoke of the Narragansetts, after having spent a day “burning and spoiling” their country: “no Indians would come near us, but run from us, as the deer from the dogs.” He concluded that the Indians might fight seven years and not kill seven men. Their fighting style, he wrote, “is more for pastime, than to conquer and subdue enemies.”

All this describes a people for whom war is a deeply regrettable last resort. An agrarian people, the American Indians had devised a civilization that provided dozens of options all designed to avoid conflict–the very opposite of Europeans, for whom all-out war, a ferocious bloodlust, and systematic genocide are their apparent life force. Thomas Jefferson–who himself advocated the physical extermination of the American Indian–said of Europe, “They [Europeans] are nations of eternal war. All their energies are expended in the destruction of labor, property and lives of their people.”

Puritan Holocaust

By the mid 1630s, a new group of 700 even holier Europeans calling themselves Puritans had arrived on 11 ships and settled in Boston-which only served to accelerate the brutality against the Indians.

In one incident around 1637, a force of whites trapped some seven hundred Pequot Indians, mostly women, children, and the elderly, near the mouth of the Mystic River. Englishman John Mason attacked the Indian camp with “fire, sword, blunderbuss, and tomahawk.” Only a handful escaped and few prisoners were taken-to the apparent delight of the Europeans:

To see them frying in the fire, and the streams of their blood quenching the same, and the stench was horrible; but the victory seemed a sweet sacrifice, and they gave praise thereof to God.

This event marked the first actual Thanksgiving. In just 10 years 12,000 whites had invaded New England, and as their numbers grew they pressed for all-out extermination of the Indian. Euro-diseases had reduced the population of the Massachusett nation from over 24,000 to less than 750; meanwhile, the number of European settlers in Massachusetts rose to more than 20,000 by 1646.

By 1675, the Massachusetts Englishmen were in a full-scale war with the great Indian chief of the Wampanoags, Metacomet. Renamed “King Philip” by the white man, Metacomet watched the steady erosion of the lifestyle and culture of his people as European-imposed laws and values engulfed them.

In 1671, the white man had ordered Metacomet to come to Plymouth to enforce upon him a new treaty, which included the humiliating rule that he could no longer sell his own land without prior approval from whites. They also demanded that he turn in his community’s firearms. Marked for extermination by the merciless power of a distant king and his ruthless subjects, Metacomet retaliated in 1675 with raids on several isolated frontier towns. Eventually, the Indians attacked 52 of the 90 New England towns, destroying 13 of them. The Englishmen ultimately regrouped, and after much bloodletting defeated the great Indian nation, just half a century after their arrival on Massachusetts soil. Historian Douglas Edward Leach describes the bitter end:

The ruthless executions, the cruel sentences…were all aimed at the same goal-unchallengeable white supremacy in southern New England. That the program succeeded is convincingly demonstrated by the almost complete docility of the local native ever since.

When Captain Benjamin Church tracked down and murdered Metacomet in 1676, his body was quartered and parts were “left for the wolves.” The great Indian chief’s hands were cut off and sent to Boston and his head went to Plymouth, where it was set upon a pole on the real first “day of public Thanksgiving for the beginning of revenge upon the enemy.” Metacomet’s nine-year-old son was destined for execution because, the whites reasoned, the offspring of the devil must pay for the sins of their father. The child was instead shipped to the Caribbean to spend his life in slavery.

As the Holocaust continued, several official Thanksgiving Days were proclaimed. Governor Joseph Dudley declared in 1704 a “General Thanksgiving”-not in celebration of the brotherhood of man-but for [God’s] infinite Goodness to extend His Favors…In defeating and disappointing… the Expeditions of the Enemy [Indians] against us, And the good Success given us against them, by delivering so many of them into our hands…

Just two years later one could reap a ££50 reward in Massachusetts for the scalp of an Indian-demonstrating that the practice of scalping was a European tradition. According to one scholar, “Hunting redskins became…a popular sport in New England, especially since prisoners were worth good money…”

Origin of the Wal-Mart Workers’ Movement

walmart black friday strike

Wal-Mart’s unfair labor policies have been a concern of workers’ rights activists for decades but they managed to avoid a retail strike until last year. On October 4th 2012, 60 Wal-Mart employees struck in Los Angeles followed by strikes at 28 stores in 12 states five days later. Shortly after on October 10th, pressure was increased when more than 200 workers protested at Wal-Mart’s global headquarters in Bentonville, Arkansas, as executives met for its annual financial analyst meeting. More than 400 Wal-Mart strikers, mostly coordinated by Organization United For Respect at Wal-Mart (OUR Wal-mart) with support from the United Food and Commercial Workers Union, walked out on Black Friday, the day after Thanksgiving and traditionally Wal-Mart’s most profitable (and chaotic) day of the year.

Wal-Mart’s intimidation tactics have long suppressed employees’ attempts to organize but previous incidents reflecting growing collective outrage and urgency served as catalyst to make the wave of strikes inevitable. On June 4th 2012, eight Mexican guest workers at Wal-Mart supplier CJ’s Seafood went on strike and filed a complaint with the Labor Department and the Equal Opportunity Labor Commission. Plant managers had forced them to work 24 hour shifts with no overtime, locked employees inside the plant, threatened them with beatings and threatened violence against their families in Mexico. As a result of the strike, Wal-Mart was pressured into suspending CJ’s Seafood as a supplier.

In early September of 2012, around 30 temp workers at a warehouse storing goods for Wal-Mart went on strike without union backing. Conditions of the freight containers they worked in were becoming dangerously hot in the Summer. In addition, the underpaid workers had no access to clean water, were forced to use malfunctioning equipment, denied work breaks, and threatened by supervisors. The following week another 30 employees at a Wal-Mart distribution center in northeastern Illinois walked out after being retaliated against by supervisors for delivering a list of grievances to management. Their petition shared many of the same concerns listed by the strikers in California: dangerous working conditions, unsafe or insufficient equipment, lack of living wages, no overtime pay, benefits and job security, irregular schedules, work speed-ups and wage theft.

While exploitation and unjust treatment of workers are not unique to Wal-Mart and companies they subcontract to, the wild growth of the Wal-Mart empire can be largely attributed to their business model. Besides maintaining strict anti-union policies, by keeping tight control over their supply chain they force costs and responsibilities onto suppliers, squeezing their margins. Predictably, this results in the lowest paid laborers getting hit the hardest while the highest paid CEOs make obscenely inflated profits. According to Federal Reserve data analyzed by Sylvia Allegretto and Josn Bivens, between 2007 and 2010, while the average American family’s wealth decreased 38.8%, wealth of Wal-Mart heirs rose 22% to nearly $90 billion, equivalent to the wealth of 41.5 percent of American families combined. An article for the Progressive Change Campaign Committee by Zaid Jilani highlighted the fact that Wal-Mart CEO Mike Duke received compensation worth $18.1 million in 2011 while the average sales associate at the company was paid $8.81 an hour according to independent market research group IBIS World. Thus, Duke earned 1,167 times as much as his company’s average worker (average CEO-to-worker compensation ratio was 209.4-to-1 in 2011). A 2008 SweatFree Communities report brought to light horrendous working conditions at a Wal-Mart supplier in Bangladesh where sweatshop factory workers were forced to work up to 19-hour shifts, frequently subjected to verbal and physical abuse and paid as little as $20 a month.

Societal harm caused by Wal-Mart is hardly limited to poverty and sub-poverty wage employees, subcontractors, and their families. In 2010 Public Advocate for the City of New York Bill de Blasio and Hunter College Center for Community Planning and Development released “Wal-Mart’s Economic Footprint”, a comprehensive review of over fifty studies on Wal-Mart’s economic impact across the country. Among their findings:
-For every two low wage jobs Wal-Mart creates, three local jobs are eliminated.
-Wal-Mart stores have a strongly negative impact on a community’s existing retailers.
-Large chain stores such as Wal-Mart send most of their revenues out of communities.
-Wal-Mart has thousands of employees who qualify for Medicaid and other publicly subsidized care.
-Wal-Mart likely avoided paying $245 million in taxes 2008 by paying rent to itself and then deducting that rent from its taxable income.
-Wal-Mart has admitted a failure to pay $2.95 billion in taxes for fiscal year 2009.
-Wal-Mart’s average annual pay of $20,774 is below the Federal Poverty Level for a family of four.

Because Wal-Mart is now the largest food seller in the US, it has an outsized impact on our food system influencing which foods are made available, market prices of food and methods used by food producers. Continuing Wal-Mart’s trend of prioritizing profits over people, last year the company made a deal with Monsanto to sell unlabeled GM corn. This decision was made despite protests of 463,000 signatories of a petition from Food and Water Watch urging Wal-Mart not to carry the potentially harmful product.

The National Labor Relations Board recently decided that it will prosecute Wal-Mart for labor rights violations for firing and retaliating against striking workers and those who have been outspoken about working conditions at Wal-Mart. This case shows that actions over the past year and a half have had a significant impact. Nearly a year after the Tazreen factory fire in Bangladesh that killed at least 117 people, Wal-Mart has refused to contribute to a compensation program for survivors and families (55% of the factory’s production was for Wal-Mart contractors). Wal-Mart has also been in the media spotlight for promoting a holiday food drive for its own employees, many of whom are paid under $9 an hour.

To keep the pressure on Wal-Mart, many workers will be walking off the job again for this year’s Black Friday. Learn more about this year’s action and/or participate by visiting the ActionNetwork.org site.

Sources:

http://www.democracynow.org/2012/10/10/walmart_workers_in_12_states_stage#transcript

http://www.huffingtonpost.com/2012/09/17/warehouse-workers-strike-illinois_n_1891499.html

http://www.guardian.co.uk/business/2012/oct/18/walmart-supply-chain-agencies-accused-wage-theft

http://thinkprogress.org/economy/2012/07/17/534591/walmart-heirs-wealth-combined/

http://boldprogressives.org/why-they-strike-wal-marts-ceo-earns-1167-times-as-much-as-an-average-worker-at-the-company/

https://docs.google.com/file/d/0BwH0nSyYMDxtNzZlYTBkN2UtNDQyMS00MzhkLTlkZTctMGQ4NjQ5NGNlZTRj/preview?hl=en

http://advocate.nyc.gov/files/Walmart.pdf

http://www.commondreams.org/headline/2012/08/04-0

http://www.foodandwaterwatch.org/pressreleases/national-community-labor-and-food-leaders-explain-why-walmart-cant-fix-new-york-citys-food-system/

Judging from footage such as this compilation video of various Black Friday sales last year at Wal-Mart and other stores, many employees may also want to skip work that day for personal safety reasons: