Big Corporations Have an Overwhelming Amount of Power Over Our Food Supply

By Michael Snyder

Source: The Economic Collapse

From our fields to our forks, huge corporations have an overwhelming amount of power over our food supply every step of the way.  Right now there are more than 313 million people living in the United States, and the job of feeding all of those people is almost entirely in the hands of just a few dozen monolithic companies.  If you do not like how our food is produced or you don’t believe that it is healthy enough, it isn’t very hard to figure out who is to blame.  These mammoth corporations are not in business to look out for the best interests of the American people.  Rather, the purpose of these corporations is to maximize wealth for their shareholders.  So the American people end up eating billions of pounds of extremely unhealthy food that is loaded with chemicals and additives each year, and we just keep getting sicker and sicker as a society.  But these big corporations are raking in big profits, so they don’t really care.

If we did actually have a capitalist system in this country, we would have a high level of competition in the food industry.  But instead, the U.S. food industry has become increasingly concentrated with each passing year.  Just consider the following numbers about the U.S. agricultural sector…

The U.S. agricultural sector suffers from abnormally high levels of concentration. Most economic sectors have concentration ratios around 40%, meaning that the top four firms in the industry control 40% of the market. If the concentration ratio is above 40%, experts believe competition can be threatened and market abuses are more likely to occur: the higher the number, the bigger the threat.

The concentration ratios in the agricultural sector are shocking.

-Four companies own 83.5% of the beef market.
-The top four firms own 66% of the hog industry.
-The top four firms control 58.5% of the broiler chicken industry.
-In the seed industry, four companies control 50% of the proprietary seed market and 43% of the commercial seed market worldwide.
-When it comes to genetically engineered (GE) crops, just one company, Monsanto, boasts control of over 85% of U.S. corn acreage and 91% of U.S. soybean acreage.

When so much power is concentrated in so few hands, it creates some tremendous dangers.

And many of these giant corporations (such as Monsanto) are extremely ruthless.  Small farmers all over America are being wiped out and forced out of the business by the predatory business practices of these huge companies

Because farmers rely on both buyers and sellers for their business, concentrated markets squeeze them at both ends. Sellers with high market power can inflate the prices of machinery, seeds, fertilizers and other goods that farmers need for their farms, while powerful buyers, such as processors, suppress the prices farmers are paid. The razor-thin profit margins on which farmers are forced to operate often push them to “get big or get out”—expanding into mega-operations or exiting the business altogether.

Of course the control that big corporations have over our food supply does not end at the farms.

The distribution of our food is also very highly concentrated.  The graphic shared below was created by Oxfam International, and it shows how just 10 gigantic corporations control almost everything that we buy at the grocery store…

10-Corporations-Control-What-We-Eat-425x265

And these food distributors are often not very good citizens either.

For example, it was recently reported that Nestle is running a massive bottled water operation on a drought-stricken Indian reservation in California

Among the windmills and creosote bushes of San Gorgonio Pass, a nondescript beige building stands flanked by water tanks. A sign at the entrance displays the logo of Arrowhead 100% Mountain Spring Water, with water flowing from a snowy mountain. Semi-trucks rumble in and out through the gates, carrying load after load of bottled water.

The plant, located on the Morongo Band of Mission Indians’ reservation, has been drawing water from wells alongside a spring in Millard Canyon for more than a decade. But as California’s drought deepens, some people in the area question how much water the plant is bottling and whether it’s right to sell water for profit in a desert region where springs are rare and underground aquifers have been declining.

Nestle doesn’t stop to ask whether it is right or wrong to bottle water in the middle of the worst drought in the recorded history of the state of California.

They have the legal right to do it and they are making large profits doing it, and so they are just going to keep on doing it.

Perhaps you are thinking that you can avoid all of these corporations by eating organic and by shopping at natural food stores.

Well, it isn’t necessarily that easy.

According to author Wenonah Hauter, the “health food industry” is also extremely concentrated

Over the past 20 years, Whole Foods Market has acquired its competition, including Wellspring Grocery, Bread of Life, Bread & Circus, Food for Thought, Fresh Fields, Wild Oats Markets and others. Today the chain dominates the market because it has no national competitor. Over the past five years its gross sales have increased by half (47 percent) to $11.7 billion, and its net profit quadrupled to $465.6 million. One of the ways it has achieved this profitability is by selling conventional foods under the false illusion that they are better than products sold at a regular grocery store. Consumers falsely conclude that these products have been screened and are better, and they are willing to pay a higher price.

The distribution of organic foods is also extremely concentrated. A little-known company, United Natural Foods, Inc. (UNFI) now controls the distribution of organic and natural products. Publically traded, the company has a contract with Whole Foods and it is the major source of these products for the remaining independent natural food stores. This relationship has resulted in increasingly high prices for these foods. Small manufacturers are dependent on contracts with UNFI to get their products to market and conversely, small retailers often have to pay a premium price for products because of their dependence on this major distributor. Over the past five years, UNFI’s net sales increased by more than half (55.6 percent) $5.2. billion. Its net profit margin increased by 88 percent to $91 million.

Everywhere you look, the corporations are in control.

And this is especially true when you look at big food retailers such as Wal-Mart.

Right now, grocery sales account for about half of all business at Wal-Mart, and approximately one out of every three dollars spent on groceries in the United States is spent at Wal-Mart.

That is absolutely astounding, and it obviously gives Wal-Mart an immense amount of power.

In fact, if you can believe it, Wal-Mart actually purchases a billion pounds of beef every single year.

So the next time someone asks you where the beef is, you can tell them that it is at Wal-Mart.

On the restaurant side, the ten largest fast food corporations account for 47 percent of all fast food sales, and the love affair that Americans have with fast food does not appear to be in danger of ending any time soon.

Personally, if you do not like how these corporate giants are behaving, you can always complain.

But you are just one person among 313 million, and most of these big corporations are not going to consider the ramblings of one person to be of any significance whatsoever.

Collectively, however, we have great power.  And the way that we are going to get these big corporations to change is by voting with our wallets.

Unfortunately, the vast majority of Americans seem quite satisfied with the status quo.  So the population as a whole is likely going to continue to get sicker, fatter and less healthy with each passing year, and the big food corporations are going to keep becoming even more powerful.

The “Makers” and “Takers” — Not Who You Think

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By Kevin Carson

Source: Center for a Stateless Society

The old “53% vs. 47%” meme that got so much attention in the 2012 election resurfaced this week when it came out that Colorado gubernatorial candidate Bob Beauprez apparently first coined it at a 2010 Rotary Club speech. The 47% who pay no income tax, he said back then, are “dependent on the largesse of government” and “perfectly happy that someone else is paying the bill.” The talking point got traction with the Tea Party and was soon picked up by politicians like Paul Ryan (who warned we were approaching “a net majority of takers vs. makers”) and Mitt Romney.

Of course this is pure buncombe.  It presupposes that high taxable incomes result primarily from being “makers,” when the truth is just the opposite. The higher your income, in fact, the more likely you’re a taker who’s — all together now! — dependent on government.

It’s possible to get moderately wealthy — say, an income that qualifies you for the “top 1%,” which is somewhere under $400,000, or assets in the low millions — through genuine entrepreneurship. Even at this level, of course, it’s more likely you have an income heavily inflated by membership in a licensing cartel, or help manage a highly authoritarian, statist corporation where your “productivity” — and bonuses — are defined by how effectively you shaft the people whose skills, relationships and other human capital are actually responsible for the organization’s productivity. But it’s at least possible to get this rich by being a maker of sorts, by being more adept than others at anticipating and meeting real human needs.

But you don’t get to be super-rich — to the tune of hundreds of millions or billions of dollars — by making stuff. You get that filthy rich only through crime of one sort or another (even if it’s technically perfectly legal in this society). You get the really big-time money not by making stuff or doing stuff, but by controlling the conditions under which other people are allowed to make stuff and do stuff. You get super-rich by getting into a position where you can fence off opportunities to produce, enclosing those natural opportunities as a source of rent. You do it by collecting tolls and tribute from those who actually make stuff, as a condition of not preventing them from doing so. In other words you get super-rich by being a parasite and extorting protection money from productive members of society, with the help of government.

So don’t be fooled by the fact that some of us aren’t paying any income taxes. We pay lots of taxes — to rich takers who live off our largesse. The portion of your rent or mortgage that results from the enormous tracts of vacant and unimproved land held out of use through artificial property rights is a tax to the landlord. The 95% of the price of drugs under patent, or Bill Gates’s software, is a tax you pay to the owners of “intellectual property” monopolies. So is the portion of the price you pay for manufactured goods, over and above actual materials and labor, that results from embedded rents on patents and enormous brand-name markups on (for example) Nike sneakers over and above the few bucks a pair the sweatshops contract to make them for. So is the estimated 20% oligopoly price markup for industries where a few corporations control half or more of output. If by chance you do pay federal income tax, half of it goes to support the current military establishment or pay off debt from past wars — wars fought for the sake of giant corporations.

The “takers,” in short, are the people Romney spoke to at $1000/plate fundraisers, who pay Hillary Clinton several hundred grand for a speech reassuring them Wall Street’s not to blame. The entire Fortune 500, the entire billionaire plutocracy, depends on largesse from us makers — and they can only do it with government help.

Podcast Roundup

6/25: On the C-Realm podcast, KMO interviews Ed Whitfield, Hannah Jones and Gar Alperovitz, covering topics ranging from appropriate and inappropriate uses of private property, responsible investing and social progress. The podcast concludes with a conversation with Alixa and Naima of Climbing Poetree, who critique the Drug War and deliver a couple of excellent poems.

http://www.c-realm.com/wp-content/uploads/420_Just_Transition.mp3

6/25: Catherine Austin Fitts discusses a wide array of issues (including: The Financial Coup d’Etat; Missing Money; Black Budget Funding of Private Corporate Projects; History and Organization of the Financial System since World War II; the Exchange Stabilization Fund Managed by the New York Fed; Digital Currencies and the Shadow Government) on the latest episode of Guns and Butter.

http://archives.kpfa.org/data/20140625-Wed1300.mp3

6/25: The author of “Confessions Of An Economic Hitman”, John Perkins, joins The Higherside Chats to talk about his newest book, “Hoodwinked” which traces how the tactics described in his earlier book has evolved since the 70′s and offers practical solutions to get society back on track.

http://thehighersidechats.com/wp-content/uploads/2014/06/115-John-Perkins.mp3

6/25: On Red Ice Radio, host Henrik Palmgren has a conversation with David McGowan, author of “Weird Scenes Inside the Canyon: Laurel Canyon, Covert Ops & The Dark Heart of the Hippie Dream”. They discuss the dark underbelly of the California counterculture scene of the late 60’s and early 70’s.

http://rediceradio.net/radio/2014/RIR-140625-davidmcgowan-hr1.mp3

Individual Wealth in Perspective

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By James Hall

Source: Negotium

A quaint comparison of what money can buy in today’s market has Bill Gates being able to afford every home in Boston. His $76.6 billion reported by the Washington Post or the $78.4 billion by Forbes seems a pittance when put up against John D. Rockefeller’s peak wealth of $318.3 billion (based on 2007 US dollar). According to your resident commissars over at MSNBC, “The median net worth of American households hasn’t changed much over the past decades, it’s about $20,000.” So if Gates decided to purchase all the Beantown houses, whom would he pay for the bricks and mortar? Certainly, most Americans may think of “their home is their castle”, but few actually own a debt free deed to their grand estate. No wonder the banks and financial institutions, are so fond of placing liens on real property.

The proportional context of looking at individual wealth within the relative value of global wealth is examined in the essay; It’s A “0.6%” World: Who Owns What Of The $223 Trillion In Global Wealth, seems trite. Zerohedge concludes, “The bottom line: 29 million, or 0.6% of those with any actual assets under their name, own $87.4 trillion, or 39.3% of all global assets.”

CSwealth

Here are the stunning facts:

“In 2012, 3.2 billion individuals – more than two-thirds of the global adult population – have wealth below USD 10,000, and a further one billion (23% of the adult population) are placed in the USD 10,000–100,000 range.

The average wealth holding is modest in the base and middle segments of the pyramid, total wealth amounts to USD 39 trillion, underlining the potential for new consumer trends products and for the development of financial services targeted at this often neglected segment.

The remaining 373 million adults (8% of the world) have assets exceeding USD 100,000.

And then the top of the pyramid: 29 million US dollar millionaires, a group which contains less than 1% of the world’s adult population, collectively owns nearly 40% of global household wealth.

Some 84,500 individuals are worth more than USD 50 million, and 29,000 are worth over USD 100 million.”

After absorbing this macro economic analysis, it should ease the pain that the stewardship of world wealth is in such trustworthy hands. No need to burden the masses with the weight of building wealth, when that formula for getting to the top of the financial pyramid, has room for only the few. The expert obelisk creators never meant for wealth sharing and the tools to construct one’s own prosperity are not included in your capital accumulation education. The liability of mortgage and property tax obligations to retain your edifice requires regular payments to maintain the privilege of possession. Ownership is only a conditional wealth asset.

Investopedia says 3 Simple Steps To Building Wealth are:

“You need to make it. This means that before you can begin to save or invest, you need to have a long-term source of income that’s sufficient enough to have some left over after you’ve covered your necessities.

You need to save it. Once you have an income that’s enough to cover your basics, you need to develop a proactive savings plan.

You need to invest it. Once you’ve set aside a monthly savings goal, you need to invest it prudently.”

Ordinary consumers do not build great fortunes. The elementary prescription for “getting ahead” is severely limited in thinking for a world that frequently conducts business as a blood sport. However, many of the enterprises that carve out a market for their products or services have a distinct edge over the unconnected entrepreneur. Namely, government directed and controlled startups or collaborated ventures frequently become the commercial giants of the economy. Here lays the confusion when defining wealth as an accounting device of personal ownership of assets.

In addition, governments are often in the privatization and sale of state assets. The Economists reports that the “IMF estimate that non-financial government assets average 75% of GDP in advanced economies. In most countries, these are worth more than financial assets (stakes in listed firms, sovereign-wealth and securities holdings and the like).”

Liquid cash flow and high worth individuals, especially with inside track contacts, are able to cherry pick sweet heart deals. Such opportunities, usually transfers treasure, but infrequently are engines of new wealth creation. The only guarantee is that money, made or lost depending upon the accounting needs of the vulture predator, is never an option for the normal hard working taxpayer.

Unless people accept the reality that creating and growing wealth is a noble objective that involves the widespread commerce participation of a merchant class, the outrageous disparity of the top down wealth stream will widen even more, as the top tier inclusion narrows to fewer mega-billionaires.

Global business encourages transnational conglomerates with commercially identifiable names and logos. When entire economies prevail under a business plan that eliminates any rival competition, and achieves sole market dominance, the prospects to advance the individual wealth ledger of the average person diminishes.

An opportunistic society can only exist when independent business flourishes. Government bureaucrats and corporate technocrats oppose an unambiguous free market economy. As the map of the über-billionaires illustrates, their checkbook could swallow up entire cities. However, digesting, let alone growing communities into quality environments for future generations, takes an active involvement in the wealth building process that rewards contributing players.

Without a widespread populace practicing mutually beneficial business transactions, the capacity to achieve the skills necessary to compete successfully, will never develop. Instead of making money, saving money and investing money, learn the aptitude of business as a lifelong endeavor.

The poor will always be scraping the bottom, until they learn how to advance their abilities for the betterment of their own families. The alternative to greater concentration of wealth is to initiate a viable substitute to the financial stranglehold that furthers the appetites of egomaniacs like the character, Bretton James in the movie Money Never Sleeps. In the end, the true individual wealth that anyone can attain is the sincerity and moral substance of his or her own character. Money may not snooze from making more cash, but is only a means to elevate living a life worth lived.

In such a quest, the super rich may have a net worth equivalent to one’s property, but they can never afford the essence of your family or measure of your community.

 

What Would Afghan Spending Buy at Home?

By Russ Baker

Source: WhoWhatWhy

Most of the stories headlining how President Obama plans to cut troops in Afghanistan as part of his planned exit from that country have not bothered to provide numbers on U.S. military spending there.

A few have, but almost in passing. For example, CNN doesn’t indicate the current levels of spending, but notes that

Tony Blinken, Obama’s deputy national security adviser, told CNN that the United States will spend about $20 billion on the continued military presence in Afghanistan after 2014.

In other words, $20 billion is what the U.S. will spend after it has effectively “withdrawn.”

Too bad news organizations don’t routinely give us a sense of what we are spending, or what else we might get for the same monies directed toward other purposes.

But here’s one thing to consider: $20 billion is about one-third to one-half of what the United States Department of Education spends on elementary, secondary and vocational education, and comparable to what it spends on higher education.

When President Obama released his Fiscal Year 2013 budget, Education Secretary Arne Duncan “announced that high-quality education is absolutely critical to rebuilding our economy.” Maybe so, but domestic spending is constantly under assault—and the lawmakers who reflexively support any and all military allocations are often the same ones complaining about “big government” and “wasteful” spending.

Here are a few other comparative statistics: (numbers vary, of course, from year to year)

-$20 billion is what the U.S. government budgeted for 2013 to subsidize often-struggling farmers

-It’s four-fifths of what we spend for science, space and technology

-It’s more than twice the budget of the Environmental Protection Agency

-It’s a third of what we spend on veterans’ hospital and medical care—on the people who fight in all wars combined

-It’s about a third of what we spend on administration of justice

-It’s five times what’s budgeted for energy conservation in 2014 and 2015

-It’s about 8 times what we spend on national parks—which have suffered continued cuts in recent years, resulting in reduced services and closures

If it’s not achieving something of clear benefit to Americans, why does the spending continue at such levels? Here’s another thing to consider, a graphic on Afghanistan we’ve run in the past to considerable interest:

11

Sources for Budget Data:

OMB Historical Budget Tables

Department of Interior 2014 Budget Highlights

It’s Time to Start Believing Again – Why Basic Income Could and Should be the Next Global Political Movement

Source: Thought Infection

Things change slowly and then all at once. 

If there is one great consistency about change in the 21st century, it is that things seem to change almost imperceptibly right up until they become inevitable. Many good examples of this effect can be found in the world of technology such as the rise of the internetthe fall of film-cameras, or the explosive growth of the green energy industry. In all of these cases the exponential nature of technological advances led many to discount major changes that eventually disrupted entire industries. While this effect is best understood in the world of technology I think this kind of change can also be seen in social and political spheres.

Political movements must by necessity start with only a minority of individuals working very hard for very many years to push forward on an issue. For a very long time it can appear that little or no progress is being made, but below the surface opinions and minds are slowly shifting. This slow progression continues in the background, almost imperceptibly until some sort of tipping point is reached and a sudden shift in the public and political sentiment can occur. A good example of this effect would be the momentous shift away from a deep and vitriolic hatred of gays only a few decades ago towards increasing acceptance today.

In addition to the energy provided by a small group of dedicated individuals, flashpoint social or political change also requires the maneuvering room in order for rapid revolutionary change to happen. The room for new ideas to maneuver can be created by a collapse of incumbent ideology, or in the case of the greatest shifts it often comes from a wider, systemic loss of faith in the system. When people become embittered with things as they are they will inevitably start looking to those offering alternative views.

A person without belief is a power vacuum. 

I think we are currently stand at time when conditions are set for the next global political movement to take hold. We are seeing clear symptoms of a systemic erosion of faith in the political and economic systems as they stand today.

Economic hardship and unemployment has become endemic across large parts of the developed world. Those who do work find themselves squeezed between longer working hours, higher on the job demands, increasing costs of living, and loss of both job security and benefits.

Times feel tough, and people are starting to ask why they are tough. Did we have some sort of disaster? Are our crops failing, or our industries falling apart? What happened that is making institutions like education and health too expensive to support?

Thomas Piketty, in his recent book provides strong evidence that the economic pathology of the current geopolitical situation may simply be the symptoms of a larger economic disease. When capital out-competes labour, it inevitably leads to increasing wealth disparity and the associated economic problems that we see today. People can see that the economic gains that our collective hard-work creates is going disproportionately into the hands of the wealthy. People can see that the game is rigged against them, and they don’t really want to play any more.

At the same time as economic realities are being thrust upon workers around the world, people are also increasingly detached from mainstream politics. Little real change has happened despite perpetual political promises to deliver such. Political detachment combined with economic hardship is a dangerous mix, and is credited with leading to the rise of extreme political groups like the Golden Dawn in Greece and other far-right parties in the UK and France. The rise of more extremist politics is also apparent in the increasingly polarized and broken political landscape of the United States.

The disengagement of the public from the political sphere is particularly strong for those who are also disproportionately affected by the economic slow-down, the youth. It is an unappreciated fact that there are actually more millenials in the United States than there are baby boomers. Whatever politician figures out how to engage the millenial generation politically is going to run the world.

From my perspective, there seems to be a clear build-up of political tension across the globe. While we can argue about specific economic and political maladies that have led us to this point, I think the simple fact is that people are losing faith in the system as a whole. As people lose faith, governments become more detached and fearful of their citizens, leading more people to lose faith in the system, and thus a vicious cycle of political breakdown is perpetuated.

So how do we stop this?

The answer is surprisingly simple – We need to believe again.

People need to believe that the world will be better for their children than it was for them. This is the magic that drives people to get up in the morning and go to school and work, to put in the long hours of hard work, to make discoveries, to invent new technologies, and improve the world. The economy will flourish only as long as people truly believe they can better their own life, and that of their children.

Without faith in the global economic and political system, we have nothing. 

Believe it or not, there just might be one simple medicine which (while it would not solve all of our problems) could go a long way to solving the twin problems of political and economic break down.

Basic income.

There is a long list of reasons that basic income makes for sensible economic policy, which I will not go through here. Suffice it to say that basic income would (1) give workers the leverage to demand more from work, (2) give individuals and innovators the means to do their thing, (3) give corporations more incentive to automate their production, and (4) generally support the consumption economy. (Some worry that such a basic income might lead to less incentive to work, but I say that if you need to use starvation as a threat to get people to work for you, then your business is not profitable enough.)

Perhaps most importantly, basic income would be the solution to restore the faith of the common individual in the current system of global capitalism. By institutionalizing the social contract in the form of a cash dividend for everyone, basic income would finally enshrine the promise that a rich and successful society must first deliver a minimal living standard to everyone.

Serious realistic types might rush to play down the importance of belief in the political system. Who cares whether the rabble believes in what the government and politicians do, as long as it is functional? But these people are completely missing the central truth of the matter here. Belief is the only power in the world that matters. My dollar is only worth what we collectively agree it to be worth, and the same goes for our societies. If we fail to create societies which inspire belief, then we are lost. If we do not find a way fill that vacuum left by eroding belief, then someone else will.

It is time for something that we can believe in, it is time for basic income. 

Inequality Has Been Eliminated

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By Chad Hill

Source: the Hipcrime Vocab

Have you heard? Inequality has been eliminated.

What? You didn’t know that? Well, certain “professional” economists have proved it is true.
You may wonder, when you drive around your town, why formerly occupied strip malls lie abandoned, and the only local businesses are Cash-For-Gold, Payday Loans, Dollar Stores, and tattoo parlours. You may ignore the people standing near freeway exits with signs begging for work or money (these have exploded where I live), or the people rolling around shopping carts with all their worldly possessions, or the people living in their cars. It’s all an illusion. Detroit? Chicago? Merely a mirage.

You may wonder at all the empty, shuttered factories, or the fact that the Wal-Mart Super Store is the town’s biggest employer, or that “help wanted” signs seem to appear only in the local Arby’s or Home Depot (or my favorite “owner operators wanted”). You may puzzle at the foreclosed homes stripped of copper and being overgrown with weeds that litter towns from coast to coast. The entire neighborhoods that lie empty and abanadoned? Another mirage, silly. The crumbling roads and local governments “tightening their belts?” Not happening.

Not happening. Nope, none of it.

You may have heard stories about people thirty or forty years ago with high-school educations being able to get jobs that supported families, allowed them to buy a house and save money. You may have heard about people able to save up enough to go to college by just working a summer job. You may have heard of people twenty or thirty years ago with full-time jobs that had benefits such as paid vacations and health care, which are now being stripped away job by job. You may have heard about something called a “union.”

False. All false. The world is getting more equal every day thanks to globalized corporate capitalism. The economists told me so.

You may even know people who have lost their job and are unable to find another one because employers discriminate against the unemployed. You may know someone with huge debt burdens because the cost to train workers is borne entirely by the workers themselves, and you have to go tens of thousands of dollars into debt just to get a job at all. Or you may know someone who was foreclosed upon, or drowning in debt due to an unforeseen circumstance or medical emergency. You might know people who’ve had to take jobs with much lower pay and benefits than the ones they had before. You may know people working brutally long hours, or denied extra work time so that they don’t qualify for health care benefits. You may know people who have used food stamps to feed themselves or their families, even though they work full time jobs. You may know older people who have to work because they can’t afford to retire.

They all deserve it. All of them. They’re all lazy. Laziness has exploded since 2008, don’t you know. Everyone gets exactly what they deserve. It’s never been  better time to be a worker under capitalism.

You may look on the outrageous fortunes spend by the rich and conclude that they are reaping more and more benefits by breaking wages and shipping jobs overseas. Don’t you believe it! Their riches are making everyone better off. Just look at Bill Gates! He gives money to poor people in Africa. And Steve Jobs. He invented the iPod in his basement, or something. Soaring CEO salaries are great. The bailouts were all paid back. And the soaring stock market prices will make everyone rich! Don’t worry about the costs for food, housing, education and transport. The “free market” will take care of it all and unleash abundance, but only if the “job creators” don’t have to pay taxes. Those trust fund kids getting unpaid internships and getting jobs downtown – that’s just a natural part of capitalism, it has nothing to do with inequality. The fact that entire cities are unaffordable for people making less than six figures? College and health care costs? Forget about it. Nothing to do with inequality, which, by the way, has been going down, not up. Besides, even if it were going up, inequality doesn’t matter, what matters is that life is getting better even for people even at the bottom. They love being in debt and working for minimum wage! And besides, the life for the average person is getting better and better the more riches the wealthy and powerful accumulate. After all we have smart phones. SMART PHONES!!!

All those people protesting around the world? They just don’t understand capitalism.

You may even have read books and articles asserting that we are a “winner-take-all” economy, a “servant economy,” or something like that. Not true! Those books and articles were all written by “leftists” and “liberals” who don’t understand science and statistics. Articles like this are just sensationalism by liberals who hate our freedom:

76% of Americans are living paycheck-to-paycheck (CNN)

The Middle Class Is Steadily Eroding. Just Ask the Business Community (NYT)

The Financial Vulnerability of Americans (House of Debt)

Employment Down, Profits Up: The Aftermath of the Financial Crisis in 1 Graph (The Atlantic)

‘Happy Days’ no more: Middle-class families squeezed as expenses soar, wages stall (Wall Street Journal)

A Dozen Facts about America’s Struggling Lower-Middle-Class (Brookings)

America’s Sinking Middle Class (NYT)

Why So Little Media Coverage of How the Rich Are Becoming Richer and the Middle Class Wages are Being Squeezed? (Naked Capitalism)

RIP, the middle class: 1946-2013 (Salon)

Yep, Being a Young, American Adult Is a Financial Nightmare (The Atlantic)

Ripping Off Young America: The College-Loan Scandal (Rolling Stone)

Median CEO Pay Just Topped $10M for the First Time (Slate)

Upgrade or Die (George Packer)

San Francisco’s Income Inequality Rivals that of Developing Nations (Vanity Fair)

Gap Between Rich And Poor In Manhattan “Rivals Sub-Saharan Africa” (Gothamist)

How did the economists come to this conclusion, you ask? Well, Piketty made a few spreadsheet errors. And thanks to that, the professional economist caste can breathe a sigh of relief that all of the things I named above don’t exist, and happily go back to their blackboards and spreadsheets in their corporate-funded free-market think-tank cubicles and university offices.

Because inequality is entirely dependent upon r being greater than g. That is, the rate of return to capital (yes, let’s just argue about what constitutes “capital,” that will make this whole thing go away), must be greater than g, the rate of growth of the economy. Because, heaven knows, it’s not like workers could ever get paid less than the growth of the economy, right?

Right?

Read the full article here: http://hipcrime.blogspot.com/2014/06/inequality-has-been-eliminated.html

Notes Toward a Future of Activism

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By Micah White

Source: Reconstruction 10.3

<1> Contemporary activism begins from the realization that for the first time in history, a synergy of catastrophes face us. Our physical environment is dying, our financial markets are collapsing and our culture, fed on a diet of junk thought, is atrophying — unable to muster the intellectual courage to face our predicament. While some may caution against immediate action by pointing out that societies often predict perils that never come, what is remarkable about our times is that the apocalypse has already happened.

<2> When we compare the anxiety of our age to that of the Cold War era, we see that what differentiates the two periods is where the threat is temporally located. During the Cold War, the threat of nuclear destruction was always imagined to be in the future. What terrorized the Cold War generation was the thought of life after a nuclear holocaust. Anxiety was therefore centered on what life would be like “the day after” the future event, which was symbolized by the blinding light of a mushroom cloud on the horizon. Thus the post-apocalyptic narrative was deployed in a series of nuclear holocaust science-fiction stories either to mobilize fear in the name of anti-nuke peace — the exemplar of this tactic being the horrifying and scientifically realistic 1984 BBC docudrama Threads in which civilization collapses into barbarism — or, like Pat Frank’s 1959 novel Alas, Babylon, convince a wary public that winning and happily surviving nuclear war is possible, given resourcefulness, discipline and patriotism.

<3> But for those of us alive today, the catastrophic event is not located in the future. There is no “post”-apocalyptic per se because we are already living in the apocalyptic. And although we can anticipate that life is going to get starker, darker and hellish, the essential feature of our times remains that we do not fear the future as much as we fear the present. We can notice this temporal shift in the work of James Lovelock, whose Gaia Hypothesis is gaining traction inside and outside of the scientific community. According to Lovelock’s latest book, The Vanishing Face of Gaia: A Final Warning, even if we were to immediately cease all C02 emissions, sudden and drastic climate change will still occur. In fact, Lovelock argues that a drastic decrease in emissions would trigger climate catastrophe immediately whereas continuing emissions will trigger climate catastrophe eventually and unpredictably. This realization — that the line into a post-climate-change world has already been crossed — fundamentally changes the temporal and spatial assumptions underpinning activist struggles. And the first aspect of activism that must be rethought is our notion of temporality.

<4> The typical activist project is inscribed within the horizon of a modern conception of temporality. The modernist activist acts as if we occupy a present moment that is a discrete point on the linear progression between a mythical, ancient past and an either utopian or dystopian future. But if we accept this model, then the goal of the activist can only be to change the future by preventing the dystopian possibility from being realized. This involves pushing for changes in laws and behaviors in the present that will impact our predictions of how the future will be. But activism based on this temporal model — which as John Foster points out in The Sustainability Mirage: Illusion and Reality in the Coming War on Climate Change underpins “green capitalism” and “sustainable development” — inevitably fails. For one, unable to accurately predict the future, we constantly play the game of basing our actions on rosy predictions while the future grows increasingly gloomier. Another problem with relying on linear temporality is the assumption that time moves in only one direction. Without the freedom to imagine going backwards, we are left the task of steering the runaway train of industrialization without hope of turning around.

<5> Of course, linear time is not the only way to understand temporality and some models can have even worse political consequences. Take for example, the notion that time is cyclical. For the Roman Stoics, time was marked by a series of conflagrations in which the world was razed and a new one formed only to be razed again. In times of adversity when resistance seems impossible, such as the build-up to World War 2, a watered down version of cyclical temporality sometimes enters the cultural consciousness. It infected Nazis who cheered total war and anti-Nazis who used the spurious argument that only by a catastrophic Nazi triumph would a communist state be realized because only then would the people rise up. A similar line of thought was pursued by Martin Heidegger in a letter to Ernst Jünger in which he wondered if the only way to “cross the line” into a new world is to bring the present world to its awful culmination. Unlike the linear conception of time that calls the activist to act in order to realize an alternate future, the cyclical conception is often leveraged to justify inaction or worse, action contrary to one’s ideals.

<6> To escape the problems of linear time and cyclical time, activism must rely on a new temporality. Perhaps the best articulation of this new activist temporality is in the work of Slavoj Žižek. In his most recent book, First as Tragedy, Then as Farce, Žižek blames the failure of contemporary activism on our assumption that time is a one-way line from past to future. He argues that activism is failing to avert the coming catastrophe because it is premised on the same notions of linear time that underpin industrial society. According to Žižek, therefore, a regeneration of activism must begin with a change in temporality. Paraphrasing Jean-Pierre Dupuy, Žižek writes, “if we are to confront adequately the threat of (social or environmental) catastrophe, we need to break out of this ‘historical’ notion of temporality: we have to introduce a new notion of time.” This new notion of time is a shift of perspective from historical progress to that of the timelessness of a revolutionary moment.

<7> The role of the activist should not be to push history in the right direction but instead to disrupt it altogether. Žižek writes, “this is what a proper political act would be today: not so much to unleash a new movement, as to interrupt the present predominant movement. An act of ‘divine violence’ would then mean pulling the emergency cord on the train of Historical Progress.” To accomplish this act of revolutionary violence involves a switch of perspective from the present-looking-forward to the future-looking-backward. Instead of trying to influence the future by acting in the present, Žižek argues that we should start from the assumption that the dread catastrophic event — whether it be sudden climate catastrophe, a “grey goo” nano-crisis or widespread adoption of cyborg technologies — has already happened, and then work backwards to figure out what we should have done. “We have to accept that, at the level of possibilities, our future is doomed, that the catastrophe will take place, that it is our destiny — and then, against the background of this acceptance, mobilize ourselves to perform the act which will change destiny itself and thereby insert a new possibility into the past.” In other words, only by assuming that the feared event has already happened, can we imagine what actions would need to have been taken to prevent its occurrence. These steps would then be actualized by the present day activist. “Paradoxically,” he concludes, “the only way to prevent the disaster is to accept it as inevitable.”

<8> Žižek is right to suggest that activism is at a crossroads; any honest activist will admit that lately our signature moves have failed to arouse more than a tepid response. The fact is that our present is being swallowed by the future we dreaded — the dystopian sci-fi nightmare of enforced consumerism and planet-wide degradation is, day-by-day, our new reality. And thus, activism faces a dilemma: how to walk the line between false hope and pessimistic resignation. It is no longer tenable to hold the nostalgic belief that educating the population, recycling and composting our waste and advocating for “green capitalism” will snatch us from the brink. Likewise, it is difficult to muster the courage to act when the apocalyptic collapse of civilization seems unavoidable, imminent and, in our misanthropic moments, potentially desirable. Žižek’s shift in temporality offers us a way to balance the paralyzing realization that our demise is inevitable with the motivating belief that we can change our destiny. By accepting that as the world is now we are doomed, we free ourselves to break from normalcy and act with the revolutionary fervor needed to achieve the impossible.

<9> The question for would-be activists is therefore not, “how does one engage in meaningful activism when the future is so bleak?” but instead “how does one engage in revolutionary activism when the present is so dark?”

<10> Corresponding to the necessary temporality shift is a spatial change in activism. The future of activism will be the transformation of strictly materialist struggles over the physical environment into cultural struggles over the mental environment. Green environmentalism, red communism and black anarchism will merge into blue mental environmentalism — activism to save our mental environment will eclipse activism to reclaim our physical environment. A key opening to this new form of politics appeared in 1989 with the founding of Adbusters, the internationally distributed anti-consumerism magazine whose subtitle is The Journal of the Mental Environment.

<11> Adbusters is a Situationist inspired offspring of the environmentalism movement. At the time of its formation, there was an active anti-logging movement in British Columbia, Canada. And responding to sagging public support for cutting down old growth trees, the logging industry introduced the “Forests Forever” advertising campaign. As the name suggestions, this campaign argued that the logging industry was not cutting down forests as much as they were protecting forests. It was the kind of disingenuous advertising ploy known as “greenwashing”– a term that, it is worth noting, originated in that same year. Disgusted by what he saw, Kalle Lasn, who was an experimental filmmaker at the time, created a short claymation anti-ad in which an old-growth tree explains to a sapling that a ancient forests are being replaced by tree farms. His intention was to air the anti-ad on the same television stations that the logging industry had used.

<12> When Lasn tried to buy airtime for his anti-ad on the same television station that aired the Forests Forever advertisements, he was refused. That was the founding event of Adbusters: the realization that while corporations can lie to us via the airwaves, we are unable to respond using the same means. But the message of Adbusters goes beyond concerns over the veracity of the information we receive — and here we would do well to follow Jacques Ellul who spoke of the difficulty in distinguishing between information and propaganda. Instead, it is a matter of how the advertisements we see populate our minds with a picture of reality. This picture of reality, our worldview, colors everything we perceive. Thus, the mental environmentalist movement is concerned with the pollution of our minds.

<13> While some may wish to frame this transition in terms of a new development, I think it is just as accurate to view it as an old phenomenon. Hundreds of years ago, for example, “pollution” had an exclusively unscientific, immaterial and spiritual meaning. In the 14th century to pollute meant to desecrate, defile, or contaminate what is sacred such as one’s soul or moral sensibility. Not until the late nineteenth-century did pollution take on the scientific and materialist connotation it has today. The unfortunate consequence is that with the changing meaning of the word pollution, we’ve become increasingly concerned about desecration of our external, natural environment while ignoring the defilement of our internal, mental environment. The future of activism is a return to the early meaning of pollution.

<14> Activism is entering a new era in which environmentalism will cease viewing our mental environment as secondary to our physical environment. No longer neglecting one in favor of the other, we will see a push on both fronts as the only possible way of changing either. This will involve a shift away from a materialist worldview that imagines there to be a one-way avenue between our interior reality and the external reality. Instead, recognition of the permeability of this barrier, an exploration of the mutually sustaining relationship between mindscape and landscape, will open, and reopen, new paths for politics.

<15> This movement toward an activism of the mental environment is based on an ontological argument that can be stated succinctly: our minds influence reality and reality influences our minds. Although simply stated, this proposition has profound implications because it challenges the West’s long standing Cartesian divisions between internal and external reality that serve to ignore the danger of mental toxins. Whereas traditional politics has assumed a static mind that can only be addressed in terms of its rational beliefs, blue activism believes in changing external reality by addressing the health of our internal environment. This comes from an understanding that our mental environment influences which beings manifest, and which possibilities actualize, in our physical reality.

<16> At first it may seem like a strange argument. But the imaginary has been a part of environmentalism since the beginning. Most people trace the lineage of the modern environmentalist movement back to Rachel Carson’s 1961 Silent Spring. Carson’s book argued that the accumulation of toxic chemicals in our environment could work its way up the food chain, causing a widespread die- off. It may not have been the first time the bioaccumulation argument had been made, but it was the first time that it resonated with people. Suddenly, a movement of committed activists and everyday citizens rallied under the environmentalism flag.

<17> Looking back on Carson’s book from the perspective of mental environmentalism, it is significant that it begins, not with hard science as we may expect because Carson was a trained scientist, but with fantasy. The first chapter, entitled “A Fable for Tomorrow,” reads like a fairy tale: “There once was a town in the heart of America where all life seemed to live in harmony with its surroundings.” She then goes on to describe an idyllic, pastoral community known for its abundant agriculture and wild biodiversity. She writes of foxes and deer; laurel, virburnum and alder; wild birds and trout. However, the beauty of the place is not permanent – an evil, invisible malady spreads across the land. Birds die, plants wilt and nature grows silent. The suggestion is that the land has been cursed; if this were a different story perhaps the farmers would have prayed, offered sacrifices to the gods or asked their ancestors for help. Instead, Carson shifts the blame away from transcendental forces and back to the materialist domain of man. “No witchcraft, no enemy action had silenced the rebirth of new life on this stricken world.” Carson concludes, “The people had done it to themselves.”

<18> Some literary critics have argued that the reason “Silent Spring” resonated with the larger public, sparking a movement of everyday people is largely due to this opening fable. They explain that Carson’s story takes Cold War era fears of radioactivity (an invisible, odorless killer) and redirect them into a new fear over environmental pollution that is, likewise, an invisible, odorless killer. This is a compelling interpretation that explains the rhetorical power of Carson’s story but it misses the larger point. Namely, that at its origin, environmentalism was grounded in a mythological story about a cursed land. Faced with a choice over whether to continue in this fantastical, narrative vein or enter the domain of scientific facts, environmentalism tried the latter. Environmentalism has thus become a scientific expedition largely regulated by Western scientists who tell us how many ppb of certain pollutants will be toxic and how many degrees hotter our earth can be before we are doomed. But here we see again the linear temporal model cropping up again which may explain the inability, according to James Lovelock, of the Intergovernmental Panel on Climate Change to predict the rising temperatures we have experienced. In light of the failures of the exclusively scientific approach, it is worth considering another option.

<19> What if Carson had written about how the disappearance of birds was accompanied by the appearance of flickering screens in every home? What if she had drawn a connection between the lack of biodiversity and the dearth of infodiversity? Or the decrease in plant life and the increase in advertised life? To do so would necessitate a new worldview: a blue worldview that acknowledges the interconnection between mental pollution and environmental degradation, spiritual desecration and real-world extinctions.

<20> Keeping one foot within the domain of imagination, environmentalism could speak not only of the disappearance of the wild birds due to physical pollutants but also their disappearance due to mental pollutants. We could wonder at the connection between a culture’s inability to name more than a handful of plants, and the lack of biodiversity in the surrounding nature. And instead of assuming that the lack of biodiversity in external reality caused our poor recognition skills, we would entertain the opposite possibility: that the fewer plants we recognize, the fewer plants will manifest.

<21> Blue activism begins with the realization that internal reality is connected to external reality and then wonders at the relation between pollution of internal reality and the desecration of external reality. The primary pollutant of our mental environment is corporate communication. It is no longer controversial to claim that advertisers stimulate false desires. Any parent knows that after their child watches the Saturday morning cartoons they will suddenly “need” new toys, new treats, new junk. But the effects of advertising go beyond, what the marketers call, “demand generation”. Advertising obliterates autopoesis, self-creation. It is an info-toxin that damages our imagination and our world picture, essential elements of our mental environment. Activists must work on the assumption that there is a connection between the level of pollution in our minds and the prevalence of pollution in our world. At the most basic level, this is because when our minds are polluted, and our imaginations stunted, we are unable to think of a different way of doing things. At a more complex level, it is because our mental environment dictates, to a certain extent, whether certain beings manifest in our physical environment. Naming calls beings into existence and when all the words we know are corporate-speak, the only beings that will manifesto are corporate- owned.

<22> To understand how the pollution of the mental environment can impact the manifestation of beings, consider the story of the Passenger Pigeon. In 1810 one of the great American ornithologists, Alexander Wilson, observed a flock of Passenger Pigeons so plentiful that it blacked out the sun for three days. On another occasion he documented a flock estimated to be two hundred and forty miles long and a mile wide and comprised of over a billion — 1,000,000,000 — birds. A century later, the last passenger pigeon died in the Cincinnati Zoological Garden on September 1, 1914. How do we explain this alarming extinction of the Passenger Pigeon?

<23> If we take a materialist activist position, then we will argue that their sudden demise is due to a combination of forces, all of which are located outside the psyche: overhunting combined with unenforced laws against killing the birds in their nesting places was exacerbated by the telegraph which was used to track the birds over hundreds of miles. The species death of the passenger pigeon is thus interpreted as a tragedy of specific technologies: guns, nets, laws and communication systems. Of course, this account is not wrong; it would be mistaken to argue that these technologies did not play a major factor in their extinction.

<24> But physical environmentalism boils down to conservationism. It is allopathic, only able to treat the symptom, the disappearance of the birds, without considering the root cause. By focusing our attention exclusively on material forces, we are confined to certain activist tactics: a spectrum from reformist gestures of calling for greater enforcement of environmental protection laws, courageous tree sits and militant ELF arsons. And while these actions are commendable, and with open acknowledgment that a diversity of tactics is necessary, the focus on a secular materialist politics is limiting our success. Under this model, Ted Turner is considered a philanthropic hero because he is the nation’s largest landowner and maintains the largest privately owned bison herd. What we do not need is a rich patron of endangered species, but instead a world without endangered species. That requires more than money, it necessitates a paradigm shift.

<25> The unexplainable extinction of the passenger pigeon is a symptom of the state of our mental environment. Species facing extinction can only be saved if we take their disappearance as a symptom and address the root cause of their disappearance. Because of an over-reliance on a secular, materialist conception of politics, scientists dictate the aims of activists. The irony is that our exclusive concern over the physical environment renders us unable to save it.

<26> The curious interplay between our imagination and external reality gives credence to the argument that the struggles over the mental environment are the future of activism. The future of activism begins with the realization that only with a clear mind, a clean mental environment, do we approach the possibility of a clean physical environment.

<27> Dispel immediately the notion that our mental environment is unique to each individual. Just as we share our natural environment, we also share our mental environment, which is crafted through the culture we consume – the television shows we watch, the websites we frequent and the symbols and concepts that comprise our thoughts. Thus, the mental environment is not something entirely within us but is instead something that is outside of our complete control and shared collectively.

<28> Activism of the mental environmentalism is not a politics of solipsism, or an attempt to dodge the imperative of direct action. Instead, developing a politics of anti-consumerism and anti-materialism, places the role of imagination back into the forefront. Denying corporations the right to dominate our mental environment is the most effective long-term strategy of insurrection in the twenty- first century because it directly influences the manifestation of our natural environment. By targeting the mental polluters, vandalizing billboards and blacking out advertisements, we do more than clean up urban blight — we clear a creative space for a revolutionary moment.