This Viral ‘Feel-Good’ Story Is Actually an Indictment of American Labor Hell

By Luke O’Neil

Source: Observer

In what’s quickly become the feel-good story of the week, a young Alabama man named Walter Carr is being lauded across the country for his perseverance and indomitable spirit. It’s the type of story that can instill hope in a divided nation when it’s sorely needed and serve as inspiration for the rest of us that if you work hard enough and keep a positive attitude, good things will come to you. It also happens to be disgusting horse shit and an utter indictment of the brutal, indifferent hell of the nightmare capitalist wasteland we all suffer in. So, a bit of a mixed bag here. 

Carr, a 20-year-old college student, as nearly every news outlet has pointed out in sepia-tinted coverage—from CBS News and USA Today to the BBC—was set to start a new job on Saturday morning with the moving company Bellhops. At the last minute, his car broke down, and he was unable to find a ride from friends to get there. Instead, he decided to walk. He began the trek, which was roughly 20 miles from his home, at midnight, hoping to get there by 8 a.m. the next day to meet the rest of the movers. 

“I didn’t want to defeat myself,” Carr later told ABC News.

Along the way, around 4 a.m. in the morning, Carr, a young person of color, was stopped by local police officers, who, out of the kindness of their hearts, no doubt, asked him where he was headed. When he explained the situation—and after his story checked out—they decided to give him a ride the rest of the way, even going so far as to take him to breakfast.

“He was very polite. It was ‘yes sir’ and ‘no sir,”’ one of the officers later said. I bet he was!

When he arrived at the moving job a few hours later, complete with police escort, they explained the situation to Jenny Lamey, the woman who had hired the movers. Inspired by Carr’s work ethic and apparent decency, she shared the story on Facebook, where it soon went viral. 

The story eventually came to the attention of Bellhops CEO Luke Marklin, who arranged to meet Carr a few days later for a big surprise. 

“This is how you pay it forward… treat your employees with respect and incentivize them and bet you’ll get a much better worker for it,” wrote one commenter on Twitter. “It is awesome to see a young man not make an excuse like it’s too far to go to work, and then see him rewarded for it. Wish the young man and the company all the best in the future,” added another. 

It’s enough to drive you to tears. What kind of tears those are will probably depend on how susceptible you are to the lie at the heart of American capitalism and Horatio Alger nonsense.

Carr who set out the night before with a kitchen knife to protect against stray dogs on the walk, as he explained to The Washington Post, nonetheless floored everyone he encountered along the way. 

“He’s such a humble, kindhearted person,” Lamey said. “He’s really incredible. He said it was the way he was raised.”

“We set a really high bar for heart and grit and… you just blew it away,” Marklin told him, after gifting Carr his 2014 Ford Escape (barely-driven! as alabama.com reported). 

A GoFundMe set up by Lamey to help Carr with his car troubles has since raised almost $40,000. 

“Nothing is impossible unless you say it’s impossible,” she told the Post. 

Nothing except for paying workers an actual salary with benefits, which, you may not be surprised to hear, Bellhops does not do. Essentially Uber for movers, (Marklin came to the company from Uber), Bellhops relies on the labor of young college students, like Carr, who take jobs on a gig-by-gig basis. The company, which operates in dozens of cities around the country, and has raised tens of millions of dollars in rounds of funding since it was founded in 2011, pays movers between $13-16 an hour. 

“It’s a transitional job,” CEO Cameron Doody told BuzzFeed News in a story from 2015. “It’s not a career.”

Alabama, incidentally, is also only one of five states that has traditionally never spent any state money on public transportation. 

Naturally, Bellhops are very proud of themselves, and have been reveling in the attention. You probably didn’t know the company existed before yesterday, and may be thinking about contracting their services in the future now. Win win. 

“I want people to know this—no matter what the challenge is, you can break through the challenge,” Carr, who also wants to become a Marine some day, said of his story. 

“Nothing is impossible unless you make it impossible,” he added. “You can do anything you set your mind to. I’ve got God by my side. I’m really emotional right now trying to hold back the tears.”

It’s a heartwarming reminder that, much like with getting sick or injured in America, which needs to be done in a tragic but endearing enough way to go viral so people will pay your medical bills, all you have to do to make it in this beautiful country is have your life fall apart in such a way that the news wants to write about it, then hope the benign feudal lords will see fit to offer you as an aspirational example to the rest of us so we remain compliant.

25 Families Own $1.1 Trillion Between Them as the Global Wealth Inequality Gap Grows

Using data from their list Forbes has produced a list of the top 25 richest families in the world. Together they are worth over $1.1 trillion, or the entire GDP of Indonesia.

By  Rosa Tressell and Dr. Leon Tressell

Source: SouthFront

Once a family-owned business Forbes is well known for producing their annual list of the world’s richest billionaires. Launched in 1982 the original list ranked the top 400 Americans by net worth. Only 13 billionaires were included in that list, and their combined worth was the equivalent of 2.8% of GDP. In an era where “Greed is Good”, the list became wildly popular, by 2000 the combined net worth of the top 400 equated to 12.2% of US GDP. So prestigious became the list that an ex-employee of Forbes has claimed that Donald J Trump inflated his personal wealth to be included.

This year more than 2,200 billionaires made the Forbes list with a combined value of $9.1 trillion, or half the GDP of the US. Amazon CEO, Jeff Bezos, topped the list this year as his fortune rose to £112 billion making him the first centi-billionaire. His wealth is now equal to that of 2.3 million Americans. This has allowed him to dethrone Bill Gates, founder of Microsoft, worth just $90 billion.

Using data from their list Forbes has produced a list of the top 25 richest families in the world. Together they are worth over $1.1 trillion, or the entire GDP of Indonesia. The richest clan is the Walton family who own the ubiquitous Walmart chain in America. They have a total family wealth of £152 billion and several family members are on the list of billionaires as individuals. The Koch Brothers, of Koch Industries, are ranked second with £98.7 billion. The third spot, with $90 billion to their name, is taken by another American family, the Mars family, known for their various sweet treats.

In comparison to the billionaires list this list is a measure of families who have inherited and grown their wealth over generations. The billionaires list is dominated by Americans in certain fields; technology, finance, entertainment and sport. It lauds entrepreneurism and promotes the self-made man (and small handful of women). The family fortunes list on the other hand reveals a more historical route for making money. Whilst Jeff Bezos has shot to the top of the list based largely on the astonishingly over valued share price of Amazon stock, the family fortunes are centered on the production and purveyance of goods.

Many of the families on the list started making their fortunes in the late nineteenth century. These are: Cargill Industries (agricultural conglomerate); Boehringer Ingelhelm (pharmaceuticals); Cox Enterprises (communications); Hyatt Hotels (hotels); SC Johnson (household goods); Roche (pharmaceuticals); and the Hearst Corporation (media). Meanwhile the Van Damme/De Spoelberch/De Mevius family (ranked fourth with a fortune of $54.1 billion) have been brewing quality Belgian beer, like Stella Artois, dating back centuries.

The production and purveyance of quality high end goods as a means to fortune is evident as BMW (the Quandt family), Chanel (the Wertheimer family) and Hermes (the Dumas family) find these families all ranked in the top ten.

Reliance Industries is the fist non-Western entry. A Mumbai-based energy conglomerate, it was founded by Dhirubhai Ambani in 1957 and is now worth $43.4 billion. It was his ambition to be the world’s richest man. However, following his untimely death there was a very public and acrimonious dispute between his two sons revolving around the inheritance. The widow eventually brokered a settlement and the family fortune goes on, but it does show how easily a family fortune can be dissipated.

In addition to Walmart there are two other families that have made their fortunes in retail. The Albrecht Brothers who founded Aldi are ranked 11th with a $38.8 billion fortune followed at twelfth by the Mulliez family who founded Auchan, France’s equivalent of Walmart. At thirteenth spot, with a fortune of £34 billion, is the Kwok family. They started in business as a grocery wholesaler but they really made their money when they moved into Hong Kong real estate in the 1970s. Similarly the Lee family from South Korea began as grocery exporters but have made their fortune as the worlds largest producers of smart phones with their company Samsung.

There is some methodology to the list that requires explanation. Bloomberg’s categorisation of family wealth is based on reliable, sourced documentation. They add up family members assets, including stakes in public and private companies, real estate, art and cash, and takes into account debts. It excludes first-generation fortunes and those in the hands of a single heir. It also excludes those who have derived their fortune from the state. This explains why there are no Chinese families on the list and only three from the Asian region. As newly found wealth is handed down this looks set to change.

The Forbes list also excludes members of royal families and dictators who derive their fortunes entirely as a result of their position of power. Nor do they value those holding fortunes in trust for their nations. So, despite being worth untold billions, families like the royal family of Brunei or the British monarchs are absent. Quantifying this wealth is difficult. For example, Buckingham Palace alone would be valued in excess of $5 billion, however there would certainly be conflict with Parliament if the Queen wanted to sell it!

Many billionaires positively don’t want to be on the list. They don’t want the publicity for their families with the increased risk of kidnapping, being hit up for money, questions from the tax man or even from law enforcement. Kenichi Shinoda, current Kingpin of the Yakuza, is rumoured to be worth billions but is known to keep a low financial profile. There is also plenty of Western media speculation that the President of Russia, Vladimir Putin, is actually the world’s richest man. The Bush family have amassed a vast fortune, and there are allegations that much of it has been amassed behind the political scenes in various CIA backed gun and drug running operations.

Calculations of wealth, for individuals or families, can be obfuscated by the numerous off shore arrangements that exist today. Historically, many of the world’s largest landowners are not officially registered as a result of having held title to the land for centuries. In addition trusts, foundations and “charities” allows for the ownership and management of assets in a more private manner. Wealthy families pay professionals a healthy wage to minimise their exposure to the taxman – especially avoidance of inheritance tax.

Absent from the list are the giant banking families, the Rockefellers, the Morgans and the Rothschilds; famed for being on every conspiracy theory list as powers behind the scene. The report says that their fortunes are too diffuse and diversified to correctly value. Other families suspected of wielding their riches for their own political and social agendas include the DuPonts, the Astors, the Bundys and the Freemans, to name a few. Families that like to keep their immense fortunes and their activities confidential.

To have such wealth is naturally to have much power. Certain families, like the Bushes and the Kennedys used their cash to enter politics. The Koch Brothers have already pledged $400 million to the Republicans for the 2018 mid-term elections and their support was seen as instrumental in securing Donald J Trump’s election victory. The Walmart Family Foundation is one of America’s largest political donors, and is described as a “heavy hitter” from the Centre of Responsive Politics. Economic advantage is translated into legislative favours via lobbying and campaign donations. For example, one Arkansas Congresswoman who supported the repeal of an estate tax received $83,650 from the Walton Family Foundation and  now works for them as a lobbyist. This exemplifies the corrupt relationship between economic and democratic inequality and is indicative of a system where the majority feel their voice is irrelevant.

Capitalism is built on an idea that a rising tide lifts all ships. We are supposed to look up to these rich families as examples of our betters. Underlying the lists that Forbes assembles is a worshiping of the rich. Underpinning the American dream is that its possible for anyone or any family to make it (onto the list). However, even Scrooge McDuck must be envious of the enormous fortunes of these families. As the wealth inequality gap grows within countries, especially the Western nations, there is the risk that the social fabric is coming apart at the seams. When 40% of Americans have less then $500 in savings the material basis for living the Dream is seriously compromised. Indeed, this could all turn just as easily into anger as people see that the six individual Walmart heirs alone have more wealth than the bottom 30% of the US population, and they ask themselves is this fair?

This report confirms accelerating trends towards further wealth disparity. Reports by Oxfam have shown a gaping chasm of global inequality. In 2017 3.7 billion people saw no increase in their wealth, whilst 82% of the wealth created went to the top 1%.

According to the World Inequality Report 2018:

If established trends in wealth inequality were to continue, the top 0.1% alone will own more wealth than the global middle class by 2050.

Donald Trump’s ambition to be included on the list displays his naked ambition for money, power and success. In his school of market economics, of dog eat dog, this trend is only the logic of the market. It is seen as aspirational by those at the top and by magazines like Forbes. However, even the 1% at Davos earlier this year had wealth inequality on the agenda. As the social fabric tears, political and social instability will increase. The Brexit vote, driven by the anger of the dispossessed English working class, for example, has turned the UK’s traditional stability on its head.  Anger is brewing below the surface everywhere and the probability of social and political uprisings throughout the globe are increasing.

 

What’s Wrong with the Economy: 9 Toxic Dynamics

By Charles Hugh Smith

Source: Of Two Minds

These nine dynamics are mutually reinforcing.

Beneath the surface signals of an eternally rising stock market and expanding GDP, we all sense something is deeply, systemically wrong with the U.S. economy. These nine structural dynamics generate secondary dynamics, all of which are toxic to social mobility, sustainable prosperity, accountability and democracy:

1. The financialization of the economy, which transformed services, credit, risk and labor into commodities that could be traded globally. Financialization generates enormously asymmetric returns: those with access to low-cost credit, global markets and expertise in finance collect the lion’s share of gains in income and wealth.

2. The technological transformation of the economy, which has placed a substantial scarcity premium on specific tech/managerial/communication skills and devalued ordinary labor and capital. As a result, the majority of gains in wealth and income flow to those with the scarce skills and forms of capital, leaving little for ordinary labor and capital.

3. The end of cheap fossil fuels. The fracking boom/bubble has obscured the long-term secular trend: the depletion of cheap-to-access and process oil. As many analysts have observed (Nate Hagens, Gail Tverberg, Richard Heinberg, Chris Martenson et al.), the global economy only grows if energy and credit are both cheap.

4. Globalization, which transformed the developing world into the environmental dumping ground of the wealthy nations and enabled the owners of capital to offshore waste and labor.

5. The destructive consequences of “growth at any cost” are piling up. “Growth” is the one constant of all existing political-economic systems, and none of the current Modes of Production (i.e. the structures that organize production, consumption, the economy and society) recognize that “growth” is not sustainable.

The first two dynamics drive three other dynamics that have hollowed out the productive economy:

6. The dominance of debt-funded speculation as the means of “getting ahead” as opposed to producing products and services of intrinsic value that serve the core needs of communities.

7. The economy’s gains in income and wealth are concentrated in the very top of the wealth-power pyramid: the top 5%–entrepreneurs, professionals and technocrats, etc., and within this class, most of the gains go to the top 1/10th of 1% –the existing owners of wealth, and financiers/speculators with access to cheap credit.

The net result is the bottom 95% have few opportunities to “get ahead” outside of gambling in the asset bubbles du jour: the stock and housing market. While the average middle class household may be able to borrow enough to speculate in the housing bubble, two factors limit the odds of success for ordinary investors/gamblers:

A. The gains in housing are concentrated in specific markets; outside these hot markets, gains are modest.

B. Asset bubbles eventually pop, leaving those still owning the assets with losses. The risks are thus intrinsic and high. The average investor/gambler lacks the experience needed to recognize the bubble has stopped expanding and exit the market before ll the other speculators rush for the narrowing exit.

8. The devaluation of ordinary labor and capital means the bottom 60% of the economy that lacks the requisite skills with a scarcity premium in the Emerging Economy have lost easy access to the ladder of social mobility.

9. The concentration of wealth and power in the hands of the self-serving few corrupts the economy and democracy. The U.S. economy is dominated by insider and elite rackets, skims, scams and cartels/quasi-monopolies, all of which corrupt the economy by creating perverse incentives for exploitation and gaming the system to benefit the few at the expense of the many.

This corruption in service of maximizing private/personal gains at the expense of the system itself also corrupts the mechanisms of governance, which are now little more than cloaking devices that protect insiders and elites from scrutiny and consequences.

The 20% above the bottom 60% may appear to have some access to social/economic mobility, but this is largely an artifact of the bubble economy since 2009. Once the bubble deflates, the illusion of social mobility for the “middle class” between the bottom 60% and the upper 20% vanishes.

The “upper middle class” between the bottom 80% and the top 5% is being squeezed by the over-production of elites, i.e. the over-abundance of those with college degrees and the relative scarcity of secure jobs within the top 5%. As a result, credential inflation is rampant, with Masters Degrees replacing Bachelors Degrees as the default for a white-collar job, and PhDs replacing Masters diplomas as the new default for positions that lack security and upward mobility.

In other words, the number of people who qualify for and desire a slot in the elite class (top 5%) far exceeds the number of slots available. As Peter Turchin has explained, this competition generates social disorder at the top of economic heap as the top 20% fight over the few positions open in the top 5%. The disgruntled, frustrated losers far outnumber the relatively few winners.

These nine dynamics are mutually reinforcing, meaning that each dynamic strengthens one or more of the others, reinforcing each other so the sum of the nine is far more powerful than a mere addition might suggest.

The New Aristocracy (the top 9.9%) (The Atlantic)

 

Inequality Social Dysfunction and Misery

By Graham Peebles

Source: Dissident Voice

Year on year the economic divisions and sub-divisions in the world deepen, the associated social ills increase: The rich, comfortable, and the very extremely rich keep getting richer, and the rest, well, whilst some may be raised up out of crippling poverty into relative poverty, the majority of people continue to live under a blanket of economic insecurity and largely remain where they are.

Straddling the global ladder of economic and social division sit the Multi-Billionaires (there are now 2,208 billionaires), 42 of whom (down from 61 in 2016), according to a recent report by Oxfam, own the same amount of wealth as the poorest half of humanity combined. Together with their lesser cohorts this coterie of Trillionaires sucked up “eighty-two percent of the wealth generated [in the world] last year…while the 3.7 billion people who make up the poorest half of the world saw no increase in their wealth.”

The defining challenge of our time

Income and wealth inequality is not simply a monetary issue, it is a complex social crisis that supports and strengthens notions of superiority and inferiority, and was described by President Barak Obama in 2013 as “the defining challenge of our time.”

Today’s obscene levels of inequality are the result of the Neo-Liberal economic system. This extreme form of capitalism took hold first in America and Britain in the early 1980s when Reagan and Thatcher ruled, workers’ rights were trampled on, ‘society’ was a dirty word and community responsibility was abandoned to selfishness and greed. With the aid of the World Bank and the IMF, Neoliberalism swiftly spread throughout the world, polluting life in every city, town and village with its divisive, cruel ideology. Commercialization and competition are key principles and have infiltrated every area of contemporary life; everything and everyone is seen as a commodity, and the size of ones bank account determines the level of health care, education and housing available, as well as one’s access to culture and freedom to travel.

Social injustice is inherent in the system, as is inequality, which is itself a major form of injustice. Inequality strengthens deep-seated social imbalances based on class and social standing, and in a world where everything is classified, commercialized and priced; i.e., attributed value, external wealth and position have become the common criteria for determining the internal worth of a human being. Comparison and imitation follow, individuality is perverted and fear fostered; fear of inadequacy, fear of failure, fear of not being loved, because not ‘deserving’ love, not being able to ‘afford’ love. Resentment, anger and self-loathing are fed, leading to a range of mental health issues, including anxiety, depression and drug and alcohol addiction.

Happiness and inequality

The impact of financial inequality on the health and well being of society has been extensively studied by Richard Wilkinson; British co-author of Spirit Level, Professor Emeritus of Social Epidemiology at the University of Nottingham. In order to establish national levels of inequality Wilkinson and his team used a benchmark based on how much richer the top 20% is to the bottom 20%: Japan and Scandinavia (Finland, Norway, Sweden, Denmark) came out most equal, and now, Slovenia and the Czech Republic have moved towards this group. Israel, New Zealand, Australia, Britain, Portugal and USA were found to have the greatest levels of inequality, and by some margin. Recent data suggests that Russia, South Africa and Turkey should now be added to the most unequal pile. Germany, Spain and Switzerland sit somewhere in the middle.

Data relating to a range of social issues was examined: The most unequal countries were found to have lower life expectancy than more equal societies, higher infant mortality, many more homicides, larger prison populations (by 10-15 times), applied longer sentences; had higher teenage pregnancies, lower mathematic/literacy levels, more obesity, less social mobility, and, according to The World Value Survey, a great deal less trust. In more equal countries, like Sweden and Norway, around 65% of people trust others, whereas in unequal societies like America a mere 15% admitted to trusting their fellow citizens.

In all areas, countries with high levels of inequality did worse, in many cases much worse, than more equal nations. Mental health, for example, (figures from the World Health Organization): In Japan around 8% of the population suffers from some form of mental health issue, compared to 30% in America. Children are considerably healthier in more equal countries – based on UNICEF’s Index of Child Well-Being – and feel a good deal happier. Wilkinson concludes, “What we’re looking at is general social dysfunction related to inequality. It’s not just one or two things that go wrong, it’s most things.”

Look to Scandinavia

If one of the primary purposes of any socio-economic system is to create environments in which human beings can grow and live happily together, then the nations suffering under the shadow of inequality need to learn from Sweden, Norway, Denmark and Finland, which are not just the least unequal, they are also the happiest countries in the world. Throughout Scandinavia public services – education (which is probably the best in the world), health care and housing, are valued, and taxes levied in order to fund them properly; there are greater levels of social justice, this allows for trust to develop, and where there is trust relationships flower. The extremes of staggering wealth and stifling poverty don’t exist as they do in the more unequal parts of the world; social mobility is greater and the dream of betterment more realistic, as Richard Wilkinson says, “if Americans want to live the ‘American dream’ they should go and live in Denmark.”

The first duty of government is to protect the people; this involves not only dealing with terrorism and the like, but requires the development of socio-economic policies that contribute to the creation of a healthy harmonious environment. By supporting extreme inequality (which has been shown to fuel a range of social issues) governments in the more unequal countries are totally failing in this fundamental duty. Politicians, who in many cases rely on big business and wealthy benefactors for their funding, are either blind to, or negligent of, the inherent faults of the current system, and the unhealthy, negative way of life it supports.

The case for fundamental change in the economic order, and a shift away from the destructive values it promotes is becoming irrefutable; however, change occurs only gradually and resistance is great. In the meantime, governments (particularly in the most unequal states) need to acknowledge the connection between the dysfunction and disease within society and their socio-economic methodology, which is literally making people ill, as well and poisoning the natural world. They need to invest properly in public services, address wage differences, ban bonuses, introduce progressive tax reform, and, unlike America and France which are taking retrograde steps by designing tax codes which will fuel inequality, look to the Scandinavian countries and learn from their example.

For too long socio-economic systems have been designed and maintained to cater to the desires and interests of a privileged few, while the majority live inhibited lives under the shadow of financial uncertainty. For harmonious societies to evolve this long-standing injustice needs to be addressed and a degree of balance found. This requires that those whose table is full to overflowing share some of their bounty, so that all may have enough, not excess, enough.

As a wise man has said, “The rich must give up what they want, so that the poor can have what they need.” What the rich and comfortable must give up is greed (another car, another house, more designer clothes, etc.), what the rest need is freedom from economic insecurity and the fear of destitution, freedom from exploitation and dependency; secure, comfortable, and well-designed accommodation, and access to good education, health care and culture. Such essential needs are the rights of all; when made manifest they go a long way towards establishing social justice, and where there is social justice, functional, compassionate communities do evolve, conflict is reduced and collective harmony is cultivated.

The Con of Diversity

By Chris Hedges

Source: OpEdNews.com

In 1970, when black students occupied the dean’s office at Harvard Divinity School to protest against the absence of African-American scholars on the school’s faculty, the white administration was forced to respond and interview black candidates. It asked James Cone, the greatest theologian of his generation, to come to Cambridge, Mass., for a meeting. But the white power structure had no intention of offering Cone a job. To be black, in its eyes, was bad enough. To be black, brilliant and fiercely independent was unpalatable. And so the job was given to a pliable African-American candidate who had never written a book, a condition that would remain unchanged for the more than three decades he taught at Harvard.

Harvard got what it wanted. Mediocrity in the name of diversity. It was a classic example of how the white power structure plays people of color. It decides whom to promote and whom to silence. When then-Maj. Colin Powell helped cover up the 1968 massacre of some 500 civilians at My Lai in Vietnam he was assured a glittering career in the Army. When Barack Obama proved obedient to the Chicago political machine, Wall Street and the Democratic Party establishment he was promoted to the U.S. Senate and the presidency.

Diversity in the hands of the white power elites — political and corporate — is an advertising gimmick. A new face, a brand, gets pushed out front, accompanied by the lavish financial rewards that come with serving the white power structure, as long as the game is played. There is no shortage of women (Hillary Clinton, Nancy Pelosi and Donna Brazile), Latinos (Tom Perez and Marco Rubio) or blacks (Vernon Jordan, Clarence Thomas and Ben Carson) who sell their souls for a taste of power.

Ta-Nehisi Coates in his book “We Were Eight Years in Power: An American Tragedy” writes that “Barack Obama is directly responsible for the rise of a crop of black writers and journalists who achieved prominence during his two terms.” But this was true only for those black writers like Coates and Michael Eric Dyson who were obsequious cheerleaders for Obama. If, like Cornel West, you were black and criticized Obama you were isolated and attacked by Obama surrogates as a race traitor.

“For those who didn’t support Obama it was the lonely time,” said Glen Ford, the executive editor of the Black Agenda Report, when we spoke recently. “It’s like A.D. and B.C. Before Obama time, my politics reflected that of a black commentator, probably within a respectable black political spectrum. I’m looking at a fax, ‘NAACP September 8, 2007. NAACP regional leader.’ I got this after giving a keynote speech in Little Rock, Ark., in commemoration of the events in Little Rock in ’57. You see what I’m saying? I could do that, even as late as 2007. Then Obama happened. It was a wonderful time for people who endorsed Obama. If you didn’t endorse Obama, you were verboten in the community. All of a sudden you were ostracized.”

The absence of genuine political content in our national discourse has degraded it to one between racists and people who don’t want to be identified as racists. The only winners in this self-destructive cat fight are corporations such as Goldman Sachs, whose interests no American can vote against, along with elite institutions dedicated to perpetuating the plutocracy. Drew G. Faust, the first woman president of Harvard University, whose appointment represented a triumph for diversity, upon her retirement was appointed to the board of Goldman Sachs, a role for which she will receive compensation totaling over half a million dollars a year. A new and “diverse” group of Democratic Party candidates, over half of whom have been recruited from the military, the CIA, the National Security Council and the State Department, is hoping to rise to political power based on the old con.

“It’s an insult to the organized movements of people these institutions claim to want to include,” Ford said. “These institutions write the script. It’s their drama. They choose the actors, whatever black, brown, yellow, red faces they want.

“I don’t think a black left should be investing any political capital or energy into getting Barack Obamas into a Harvard,” Ford said, “or believing it can transform Harvard or any of these ruling-class universities from the inside out, any more than it can transform the Democratic Party from the inside out.”

Ford points out that “diversity” has been substituted by the white power elites for “affirmative action.” And, he argues, diversity and affirmative action are radically different. The replacement of affirmative action with diversity, he says, effectively “negates African-American history as a legal basis for redress.”

Once the Supreme Court in its 1978 Bakke decision outlawed “quotas” for racial minorities, ruling institutions were freed from having to establish affirmative action programs that would have guaranteed a space for those traditionally excluded. The Trump administration’s recent reversal of an Obama-era policy that called on universities to consider race as a factor in admissions is an attempt to eradicate even diversity. President Trump and his racist enablers, including Education Secretary Betsy DeVos, are resegregating America.

“You do not take a man who for years has been hobbled by chains, liberate him, bring him to the starting line of a race, saying, ‘You are free to compete with all the others,’ and still justly believe you have been completely fair …” President Lyndon Johnson said in 1965 to the graduating class of Howard University. “This is the next and more profound stage of the battle for civil rights. We seek not just freedom but opportunity — not just legal equity but human ability — not just equality as a right and a theory, but equality as a fact and as a result.”

Johnson’s call, along with that of Martin Luther King Jr., was swiftly sabotaged by white, liberal elites, who divorced racial justice from economic justice. White liberals could live with laws prohibiting desegregation but not with giving up some of their financial and social privilege.

“White liberals are not seeking justice,” Ford said. “They’re seeking absolution. Anything that absolves them of responsibility for what this society has done, they welcome it. They’re hungry for it.

“The legal, as well as moral, basis for affirmative action lay in the culpability of the United States and all of its layers of government in the enslavement and Jim Crow ‘hobbling’ of African-Americans — a unique history of oppression of a specific people that requires institutional redress,” Ford has written. “Otherwise, the legacies of these crimes will reproduce themselves, in mutating forms, into infinity. Once the specificity of the Black American grievance was abandoned, affirmative action became a general catch-all of various historical wrongs. Stripped of its core, affirmative action morphed into ‘diversity,’ a vessel for various aggrieved groups that was politically versatile (and especially useful to the emerging Black deal makers of electoral and corporate politics), but no longer rooted in Black realities. The affirmative action of Dr. King and President Johnson was a species of reparations, a form of redress for specific and eminently documentable harms done to African Americans, as a people. It was understood as a social debt owed to a defined class.”

“‘Diversity,'” Ford wrote, “recognizes no such debt to a particular people, or to any people at all. Rather, its legal basis is the ‘compelling interest’ of public institutions in a diversified student body (or faculty).”

Diversity does not force the white power structure to address racial injustice or produce results within the black underclass. This feint to diversity was abetted, Ford points out, by black elitists who found positions for themselves in the power structure in exchange for walking away from the poor and marginalized.

Ford calls these black elitists “representationalists” who “want to see some black people represented in all sectors of leadership, in all sectors of society. They want black scientists. They want black movie stars. They want black scholars at Harvard. They want blacks on Wall Street. But it’s just representation. That’s it.”

The plague of diversity lies at the core of our political dysfunction. The Democratic Party embraces it. Donald Trump’s Republican Party repudiates it. But as a policy it is a diversion. Diversity has done little to ameliorate the suffering of the black underclass. Most blacks are worse off than when King marched in Selma. African-Americans have lost over half of their wealth since the financial collapse of 2008 because of falling home-ownership rates and job loss. They have the highest rate of poverty at 27.4 percent, followed by Hispanics at 26.6 percent and whites at 9.9 percent. And 45.8 percent of black children under six live in poverty, compared with 14.5 percent of white children in that age group. Forty percent of the nation’s homeless are African-Americans although blacks make up only 13 percent of our population. African-Americans are incarcerated at more than five times the rate of whites.

Diversity does not halt the stripping away of our civil liberties, the assault on our ecosystem or the punishing effects of mandated austerity and deindustrialization. It does not confront imperialism. Diversity is part of the mechanics of colonialism. A genuine revolutionary, Patrice Lumumba, was replaced with the pliant and corrupt Mobutu Sese Seko. Both were black. But one fought the colonial tyrants and the other served them. A political agenda built solely around “diversity” is a smokescreen for injustice.

The victory by Alexandria Ocasio-Cortez over the powerful Democratic Rep. Joe Crowley in a Democratic primary in Brooklyn last month is not a victory for diversity, although Ocasio-Cortez is a woman of color. It is a victory of political substance over the empty rhetoric of the Democratic Party. Ocasio-Cortez defied the party establishment as an avowed member of the Democratic Socialists of America. She could not even get a pre-election endorsement from Bernie Sanders, her mentor. She calls for Medicare for all, the abolishment of ICE, a federal jobs program and an end to the wars in the Middle East and has denounced Israel’s massacre of unarmed Palestinians. She stands for something. And it is only when we stand for something, including reparations for African-Americans, that we have a chance to dismantle corporate tyranny.

“I’ve always felt, in the early ’60s when I was just a kid, that the silent partner, sometimes reluctant although still a partner, in the civil rights movement were the corporations who wanted a unified market,” Ford said. “Jim Crow was a big anomaly in terms of creating a more unified market in the United States. You can’t have an Atlanta skyline, with its magnificent elevators, with Jim Crow. Not only would Atlanta not be an international city, it couldn’t be a national city with Jim Crow. The corporate forces wanted to break down Jim Crow and explicit color discrimination. It standardized the market. This is what capitalists do. The Democratic Party is not behaving any differently than the corporations over the past 50 years.

“I’m not worried by the Trump phenomenon,” Ford said. “That doesn’t scare me. It’s disconcerting. But it doesn’t scare me. I’m far more afraid of the space that it gives to the corporatists. It’s to their advantage. Trump defines the white man’s party’s space. It’s big. It’s no joke. It can win presidential elections. It can win again. It needs money from corporate Republicans, but it doesn’t need anything else from them. The white man’s party more clearly defines the space the Democrats claim. It’s everybody who is not an overt racist.

“I don’t think Trump will ever beat Obama’s records in terms of deportation,” Ford went on. “We should be fighting U.S. immigration policy. But that isn’t Trump. We should be organizing against Amazon taking over a whole city. But that isn’t Trump. Will Trump’s next pick for the Supreme Court be different from any pick that a Republican would make? In fact, because he’s crazy, he might f*ck up and make a bad pick for himself. He ain’t deep enough to pick the worst guy. He hasn’t read the Federalist Papers.”

 

Monuments to the Ego

By

Source: CounterPunch

Some rich bourgeoisie newcomers have perpetrated yet the latest in a series of atrocities upon the small valley where we live, entailing an assault on the sensibilities of virtually everyone and everything living there. Adding insult to injury, this has all been done with apparent utter disregard for us, our neighbors, our dirt road, the wildlife, the native vegetation, and everything sacred and beautiful.

The newcomers scalped the hillside they’ve occupied, smoothed out the offending topographic wrinkles, tore up all the untidy native shrubs, hacked a bench in the slope, erected a large garish pole barn, chiseled out an impractically steep access road, covered every flat or otherwise traversed surface with thick coats of coarse and fine gravel, revegetated the raw soil with non-native plants, propagated massive amounts of weeds, and displaced the deer and elk…meanwhile afflicting all of the neighbors below their lofty perch with the endless noise of heavy equipment suited for construction of interstate highways and a ceaseless caravan of over-sized dump trucks kicking up billowing clouds of dust while assaulting us with their jake brakes. And, no doubt, these naïve newcomers will panic when they realize that mountain lions and bears prowl the ridge where they live, with resulting fatal consequences for any large carnivore ranging nearby.

Perhaps not surprisingly, one of the favorite pastimes among us and other long-term residents is grousing about the rich newcomers, especially the ugly monstrosities they’ve built in highly-visible places. Our nearest neighbor, a salt-of-the earth kind of guy, has a talent for naming the $1 million-plus edifices, including The Ugly House, The Chicken Coop, The Atrocity, and, most recently, The Abortion Clinic.  But the most compelling comment was delivered by yet another long-time neighbor, who billed all of these overbuilt ugly piles with-a-view as simply “monuments to the ego.”

Ego and Egotism…

Ego is an interesting concept upon which to hang the rapine pillaging in our little valley…as well as throughout the human-occupied world. Freud and Buddha would have us believe that all humans have an ‘ego’ (Anatta to the Buddhists), whether as a literal reality or simply as a useful partitioning of the psyche. By these conceptions, ego entails a way of orienting to the world that engenders survival and practical action by the ‘self’.

But, importantly, Freud allows for a curbing effect of the super-ego that embodies ethical concerns and cultural constraints, usually in service of some greater collective good. Likewise, Buddhists distinguish between the Small Self, entailing ego-based motivations, and the Greater Self that, like the super-ego, embodies evolution towards a maturity manifesting compassion and cognizance of connection with other beings. In both instances, ego unchecked by the super-ego or by evolution towards a Greater Self manifests as greed, selfishness, arrogance, fear, and hedonism, with resulting indifference, dishonesty, ruthlessness, and even cruelty exhibited towards others—especially others who are alien or otherwise different.

And Our Moral Universe

Another way of framing all of this is through the lens of moral universes. A person driven wholly by crass motivations originating in the brainstem and ego has a moral universe collapsed into the cesspit of Small Self. This is to say, essentially no moral universe. Expanding outward from this problematic condition are those who deploy notions of fairness, obligation, concern, and benevolence only to family members—as in the Mafia. Next beyond are those with a moral orientation that additionally encompasses those who are of identical or similar identity—national, tribal, ethnic, racial, gender, or the like. And, at the doorstep of enlightenment and transcendence, are those who extend moral concerns and deportment towards all humans—even towards non-human sentient beings.

Scholars such as Peter Singer and Shalom Schwartz have expounded on the importance of an every-expanding moral universe to the welfare and dignity of all humans, even of non-humans with varying degrees of manifest sentience. A world comprised solely of ego-driven humans operating with little restraint or related regard for the effects of their actions on others would be a truly horrific, eventually uninhabitable, place. As Steven Pinker has argued, our small Earth has become a more hospitable and charitable place largely because ever more people are regarding ever more beings of ever greater difference with ever more benevolence, despite what one might think reading vitriolic trash published in outlets such as Breitbart.

The Larger Psycho-Sociological Context

In the end, though, unchecked egotism and all the ills that flow from it flourishes only to the extent that such a condition is sanctioned, even encouraged, by culture, society, and institutions. People obviously shape all of these derivations of basic human behaviors, but human behaviors are in turn powerfully shaped by the higher-order social-psychological phenomena within which they are embedded, creating the potential for powerfully wicked—or powerfully benevolent—synergies.

Of relevance here, culture, society, and institutions ineluctably invoke the nature of our somewhat benighted nation and the more overtly benighted nature of the individualistic capitalist enterprise we have so enthusiastically embraced and codified.

Contradictions of Capitalism

Neoconservatives and their lapdog economists would have us believe that unchecked unfettered capitalism under-girds the best of all possible worlds. Moreover, freely but selectively quoting the likes of John Locke and Adam Smith, they would further have us believe that unbridled greed and unqualified self-interest, channeled by the invisible hand of free markets, is the surest means of furthering the well-being of all humans. Indeed, the Princes of Capitalism who run amuck on Wall Street proudly and unabashedly profess their greed and fundamental disregard for others, assuming that we who hear such professions somehow know it ends well for the rest of us due to the transformative magic of markets.

Never mind peoples’ unequal access to markets. Never mind inequalities in power and privilege. Never mind unequal access to information. Never mind the fundamentally irrational behavior of humans. Never mind the distorting effects of artificial demand created by manipulative advertising. Never mind the chronic gross distortion of markets by hidden (or not so hidden) subsidies created by power elites beholden to wealth elites. Never mind…ad nauseam. We have no free markets.

Despotism…

In the end, people who are wealthy or powerful become ever more wealthy and powerful at the expense of everyone else. Despotism reigns in the sense that an ever smaller minority of people amass an ever greater portion of values, while everyone else becomes comparatively more impoverished. It is no coincidence that we have seen a trend, not only in the United States, but in most developed or developing countries, towards the amassing of more and more wealth in the hands of a mere 1%—even 0.1%—of the populace.

As the radical thinker and economist Charles Eisenstein pithily observed, the modern business enterprise operates on the basis of shifting costs onto others as a normal part of making profits; in other words, by privatizing profits while socializing costs. Put another way, profits—the fundamental underpinning of the capitalist enterprise—are axiomatically created by passing as many costs as possible onto the affected human community, the natural environment, and future generations, often in ways that are fundamentally destructive. The French economist Thomas Piketty offered a complementary argument in his book Capital in the Twenty-First Century, holding that ‘trickle down’ from wealth elites to the comparatively impoverished masses is, in reality, inconsequential and little more than cover for this despotic capitalist enterprise.

And the Problem of Externalities

But concern about the imperfections and problematics of capitalism are not limited to radical or revisionary economists. Indeed, the likes of John Locke and Adam Smith were acutely aware that, despite the hidden hand of markets, the monetary capitalist systems they championed would generate social costs and income inequalities that required rectification by governments.

Some of these social costs have been termed ‘externalities’ by succeeding generations of economists—an externality being a cost or benefit generated by a private economic transaction or activity, but incurred by those who did not chose to partake of the outcome. Classic examples of such externalities include air and water pollution, spillover effects of development on surrounding property values, and the loss of finite biota caused by profit-making enterprises.

Our society has, reasonably enough, responded to these sorts of externalities with laws that zone development, control pollution, and protect endangered species. Whether overtly or tacitly, most people realize that we do, in fact, live in community where considerations of the commonwealth occasionally weigh heavily in the scale of considerations. Indeed, every credible economic or political philosopher or theorist since Locke and Smith and afterwards, Marx, has viewed capitalism and property, not as ends in themselves, but rather as candidate means (dubious means, in the case of Marx) of uplifting humanity and enhancing the well-being and dignity of all—of promoting a flourishing commonwealth; something that many contemporary politicians, economists, and bourgeois capitalists seem to miss.

As it is, the pervasive systemic problem of privatized profits and socialized costs remains, especially in a society such as ours that is wedded to the justifying myth of capitalism and, in the minds of some, the virtues of unchecked greed and individualism—and where those who profit so much from displacing the costs of their activities onto society hold such sway over politicians. This insidious system continues to spawn the sorts of people who show up in our little valley with ill-gotten (by definition) wealth to manifest their ego in various physical obscenities.

Property…

The notion of ‘property’ is yet another pillar of Smith’s capitalism that factors into on-going devastation of the natural world by societies that have succumbed to the capitalist premise. More to the point, private property rights plays a central role in not only the unfolding ecological holocaust, but also in simultaneously catalyzing and justifying damage to human communities.

On the face of it, ‘property’ seems a benign or even beneficial concept. The term is generally understood in reference to anything owned or possessed by someone. Adam Smith even advanced the notion that one’s own labor and physical body are property held, by right of ‘natural law’, exclusively by the salient embodied person. Yet the notion of property has, in fact, been extended to possession of one human by another, most egregiously in the form of overt slavery, but historically (and, in places, still) even in application to dependent children and adult women.

And Its Problems

These latter extensions to other humans highlight an intrinsic, even potentially fatal, problem with the notion of ‘property’. Relegation of anything to the category of property constitutes the ultimate instrumentalization and related erasure of intrinsic worth. Through this, property has no rights, no prerogatives, and no claim to considerations of well-being and health.

Relegation of inanimate physical objects to the category of property is perhaps not problematic, but any application to another life form, especially one with plausible sentience immediately raises moral questions. Does a dog deserve consideration of its health and well-being, despite being property? Some people would say ‘no’, but our society has answered a resounding ‘yes’ through the passage, for example, of animal welfare laws and even serious consideration of whether chimpanzees deserve rights. But, then, do elk and bears and lions deserve consideration of their welfare? Do ecosystems have ‘health’ and, if so, do even these abstract entities warrant moral concern, especially when it comes to fostering and preserving ‘health’?

I hold that the manner in which a person orients to such issues offers a profound commentary on their ego maturity and moral universe—Small versus Greater. And, in fact, orientations towards living property end up being entangled with precepts of capitalism and consideration of ‘the other’ in choices people make regarding their use of property, specifically whether they care at all about the negative impacts their choices may have on others, whether human, animal, vegetal, or even spiritual. People with small souls and a small moral universe will probably not give a damn, and even actively resist any societal requirements that they be held accountable for the harm they cause, often by deploying the justifying rhetoric of libertarianism and the primacy of individual freedom.

Inanities of Property Rights

All of this comes to a head in considerations of private property rights, although it is worth first noting that property can be held privately, publicly, or communally, and also simply by societal consent without rising to the level of a ‘right’. But there are some ideologues and yahoos (not mutually exclusive) who hold that the only credible sort of property is private, and that all private property is axiomatically held by the owner as a ‘right’.

Such simple-minded constructions hardly pass the laugh test. On the face of it, public property has more intrinsic merit than private property simply because it is held in trust to explicitly serve the greater good of society. The same could be said for communal property, but with ‘the greater good’ reckoned at the scale of a given community.

Insofar as being a ‘right’ is concerned, Debbie Becher cogently observed in a 2015 article that “…social theorists have long understood that property is not the ownership of a thing or a set of individual rights, but a set of social agreements about what ownership entails…Property rules involve government intimately not only in creating value but also in determining who deserves which valuable resources.”

Notice ‘social agreements’, the role of ‘government’, and the invocation of ‘deserve’. None of this bespeaks a ‘right’ in the conventional sense that we think of such things, especially in application to human health and happiness (see my article on Human Dignity and Micheline Ishay’s book The History of Human Rights), although our society paradoxically—even perversely—holds that rights attach to our property but not to our health. In fact, property is held solely by the consent of society and ultimately (whether acknowledged or not) in service of promoting the commonwealth of human well-being and dignity.

Rich and Not-So-Rich Yahoos

Yet our country is filled with people who think that they not only have an absolute right to their property, but that this supposed ‘right’ gives them the prerogative to mete out use, abuse, destruction, and harm without restraint or consideration of impacts on other humans—much less impacts on other sentient beings, and certainly not impacts on the health and wholeness of the ecosystems they exploit.

Such seems to be the case with our new neighbors wreaking havoc upstream in yet the latest exhibition of stunted moral development by newly-arrived rich folk. Although these people are by no means the only ones.

Metamorphosis?

We all suffer sooner or later living in a world of unchecked greed, selfishness, and self-centeredness—understood by some to be the equivalent of ‘individualism’. This is especially true in a country such as ours where simple-minded conceptions of capitalism and private property encourage, if not sanctify, abusive relations with the land, other people, and other life forms. Under such auspices, people are prone to the fallacy of conflating ‘freedom’ with possession, which can never lead to contentment.

No doubt, most of us want the greatest scope of free choice possible, as well as assurance that the physical goods we depend upon and hold dear will be secure from depredation. Yet, more assuredly, I would hold that most of us—albeit inchoately—want to be part of a commonwealth of human dignity. Inescapably, such a commonwealth requires that we curb our actions out of respect for others and with due consideration of harm we may cause. Sadly, our society seems to be exhibiting less rather than more of such dignified self-restraint.

There are perhaps only a few ways that the current death spiral of our living Earth can be checked. The spiritually dead look to technological fixes. A highly virulent and contagious disease specific to humans might save the rest of life on this planet, but only through erasure of our species. More hopefully, we humans might evolve towards greater benevolence, generosity, and concern, not only for other humans, but for all of life.

But such evolution depends on the rapid expansion of our collective moral universe beyond the frontiers of humankind. To do so, though, requires that we transcend our delusional fixation with patently destructive ideologies, of which capitalism and private property rights are currently one of the most potent. Closer to home for me, I hope to live long enough to see the end of people scraping, gouging, chiseling, hacking, tearing, and uprooting the naked living Earth simply to build yet another monument to their ego.

Why America is the World’s First Poor Rich Country

Or, How American Collapse is Made of a New Kind of Poverty

By Umair Haque

Source: Eudaimonia

Consider the following statistics. The average American can’t scrape together $500 for an emergency. A third of Americans can’t afford food, shelter, and healthcare. Healthcare for a family now costs $28k — about half of median income, which is $60k.

By themselves, of course, statistics say little. But together these facts speak volumes. The story they are beginning to tell is this.

America, it seems, is becoming something like the world’s first poor rich country. And that is the elephant in the room we aren’t quite grasping. After all, authoritarianism and extremism don’t arise in prosperous societies — but in troubled ones, which are growing impoverished, like America is today. What do I mean by all that?

Let’s begin with what I don’t mean. I don’t mean absolute poverty. Americans are not living on a few dollars a day, by and large, like people in, for example, Somalia or Bangladesh. America’s median income is still that of a rich country, around $50k, depending on how it’s counted. Nor do I really mean relative poverty — people living below median income. While that’s a growing problem in America, because the middle class is imploding, that is not really the true problem these numbers hint at, either.

America appears to be pioneering a new kind of poverty altogether. One for which we do not yet have a name. It is something like living at the knife’s edge, constantly being on the brink of ruin, one small step away from catastrophe and disaster, ever at the risk of falling through the cracks. It has two components — massive inflation for the basics of life, coupled with crushing, asymmetrical risk. I’ll come to what those mean shortly.

The average American has a relatively high income, that of a person in a nominally rich country. Only his income does not go very far. Most of it is eaten up by attempting to afford the basics of life. We’ve already seen how steep healthcare costs are. But then there is education. There is transport. There is interest and rent. There is media and communications. There is childcare and elderly care. All these things reduce the average American to constantly living right at the edge of ruin — one paycheck away from penury, one emergency away from losing it all.

But this isn’t true for America’s peers. In Europe, Canada, and even Australia, society invests in all these things — and the costs of basic necessities societies don’t provide are regulated. For example, I pay $50 dollars for broadband and TV in London — but $200 for the same thing in New York — yet in London, I get vastly more and better media for my money (even including, yes, American junk like Ancient Aliens). That’s regulation at work. And when basic goods like healthcare or elderly care or education are provided and managed at a social scale, that is when they are cheapest, and often of the best quality, too. Hence, healthcare costs far less in London, Paris, or Geneva — and life expectancy is longer, too.

So if you are earning $50k in America, it is a very different thing than earning $50k in France, Germany, or Sweden — in America, you must pay steeply for the basics of life, for basic necessities. Thus, incomes stretch much further in other countries, which enjoy a vastly higher quality of life, even though people there earn roughly the same amount, because they pay vastly less for basic necessities. Americans are rich, but only nominally — their money doesn’t buy nearly as much as their peers does, where it matters and counts most, for the basics of life.

What happens when societies don’t understand all the above? Well, a strange thing has happened to the American economy. While it’s true that things like TVs and Playstations have gotten cheaper, the costs of the basics of life have skyrocketed. All the things that really elevate people’s quality of life — healthcare, finance, education, transport, housing, and so on — have come to consume such a large share of the average household’s income that they have little left to save, invest, or spend on anything else. And what’s worse, while the basics of life have seen massive inflation, wages and incomes (not to mention savings and benefits and safety nets and opportunities) for most have stagnated. The result is an economy — and a society — that’s collapsing.

Yet all that is the straightforward effect of giving, for example, hedge funds control over drugs, or speculators control over housing, healthcare, and education — they will of course maximize profits, whereas investing in these things socially, or at least regulating them, minimizes real costs, and maximizes accessibility, affordability, and quality.

So the average American, who is left high and dry, must borrow, borrow, borrow, just to maintain a decent quality of life — because handing capitalism control of the basics of life has caused massive, skyrocketing inflation in necessities, while flatlining his income. Healthcare didn’t used to cost half of median income even a decade ago, after all — but now it does. So what happens when, in a decade or two, healthcare costs all of median income? How can an economy — let alone a society — function that way?

Well, what happens if the average American steps over the line? Misses a mortgage payment, gets ill and is unable to pay a few bills on time, can’t pay the costs of healthcare? Then they are punished severely and mercilessly. Their “credit rating” (note how banks and hedge funds don’t have them) is ruined. They can easily find themselves out on the street, without finance, without a second chance, without access to any kind of redress or support . And then they are rejected, shunned, and ostracized. They might not have an address anymore — so who will hire them? They are no longer a part of society — they have fallen through the cracks, and finding one’s way back is often next to impossible. Asymmetrical risk — corporations and lobbies and banks bear no risk at all, precisely because the average American bears them all now.

So Americans aren’t just absolutely or relatively poor, but poor in a new way entirely. First, the basics of life exploded in price, to the point that they are now unaffordable for many, maybe most, households. Second, Americans bear the risks of paying those unaffordable costs to an extreme degree, bearing the risks that institutions should, and so those risks are now ruinously high. A bank or hedge fund or corporation might go bankrupt, and liquidate its assets, and its owners stay rich — but if an American’s credit rating is ruined, loses his job, cannot pay his bills, or even if he declares bankruptcy, he falls through the cracks, hounded, embattled, institutionally black-marked. He finds himself outside society, with little way to get back in. Little wonder then that Americans work so much harder than anywhere else — they are always one step away from losing it all, from genuine ruin, but their peers in truly rich countries aren’t.

Marx probably would have called this immiseration. Neo-Marxist theorists call it precarity. And while there’s truth in both those ideas and perspectives, I think they miss three vital points.

We don’t see America as a poor country, but we should begin to. Americans live fairly abysmal lives — short, lonely, unhappy, full of work and stress and despair, compared to their peers. That is because they cannot afford better ones — predatory capitalism coupled with total economic mismanagement of social investments has made the basics of life ruinously unaffordable. In this way, it’s effectively a poor country — yes, there’s a tiny number of ultra-rich, but they are outliers now, off the map of the normal. Because it’s not just any kind of poverty, yesterday’s poverty, or even poverty as we are used to thinking about it.

America is pioneering a new kind of poverty. The kind of poverty that’s developed in America isn’t just bizarre and gruesome — it’s novel and unseen. It isn’t something that we understand well, economists, intellectuals, thinkers, because we have no good framework to think about it. It’s not absolute poverty like Somalia, and it’s not just relative poverty, like in gilded banana republics. It’s a uniquely American creation. It’s extreme capitalism meets Social Darwinism by way of rugged self-reliance crossed with puritanical cruelty.

The kind of poverty America’s pioneering today isn’t absolute, or even relative , but something more like perfectly tuned poverty, strategic poverty, basic poverty— nominally well-off people whose money doesn’t go far enough to make them actually live well, constantly living at the edge of ruin, and thus forced to choke down their bitter anger and serve the very systems which oppress and subjugate with more and more indignity and fear and servility by the year.

America’s still an innovator today. Unfortunately, what it’s innovating now is a new kind of poverty. Yet poverty is poverty. What happens in societies where poverty is growing? Authoritarianism rises, as people lose faith in democracy, which can’t seem to offer them working social contracts. Authoritarian soon enough becomes fascism — “this country, this land, its harvest — it is only for the true volk!”, the cry goes up, when there is not enough to go around. And the rest of the dark and grim story of the fall into the abyss you should know well enough by now. It ends in words we do not say.

Still, history, laughing, has told this tale to us many times. And it is telling it to tomorrow, again, in the tale of American collapse.

Neo-Liberalism and the Retreat of Democracy

By David Schultz

Source: CounterPunch

Democracy across the world is under siege. This according to the latest Freedom House report documenting that for 2017, “democracy faced its most serous crisis in decades” as seventy-one countries experienced declines in freedom or fair government, including the United States, and only thirty-five an improvement. This was the twelfth consecutive year of decline in democracy world-wide.

The question is why? Why has confidence in democracy retreated? Freedom House does not provide an answer, but there is a reason. It is democracy’s marriage to neo-liberal capitalism has fostered the conditions leading to its own undoing, similar to the way Karl Marx once described in the Communist Manifesto the “gravedigger thesis” (What the Bourgeoisie therefore produces, above all, are its own grave diggers”) where capitalism would produce the conditions that would undermine its own existence.

From the 1960s until the early 1990s democracy was in the upswing internationally. African de-colonization produced initially popularly elected governments. In South America the demise of strongmen led to a wave of democratic regimes. And the fall of the Berlin Wall in 1989 and the break up of the USSR in 1991 produced the dismantling of communist authoritarian or totalitarian governments that made it possible for Francis Fukuyama to proclaim that democracy had won and emerged as the last grand global political meta-narrative.

Yet several problems upset this rosy picture. Most prominently, it was the marriage of these new emerging democracies with free market capitalism and the victory of neo-liberalism. Internationally as post-colonial and post-communist countries emerged, international organizations such as the World Bank and the IMF forced them to adopt market reforms, often pushing them into what was then called “shock therapy.” Shock therapy involved rapid privatization of state owned enterprises and rapid dismantling of welfare states. This shock therapy was often accompanied by significant corruption as a few rich oligarchs emerged who came to own these newly privatized state enterprises.

Simultaneously, emerging democracies were rapidly pushed into what sociologist Immanuel Wallerstein would call the world-capitalist system. This system turned politically to right in the 1970s and 1980s as Margaret Thatcher in the United Kingdom and Ronald Reagan in the United States pushed neo-liberalism or market fundamentalism as an alternative to the Keynesian welfare state that had dominated the west since the 1930s. It was adopted both for ideological reasons and because of what political economist James O’Connor would call the fiscal crisis of the state tht affect economics across the world in the 1970s. This was a crisis of declining profit among private businesses and therefore declining revenue for states to fund welfare programs. Something had to give, and it was the welfare state.

Neo-liberalism is a political economic theory of the state committed to the laissez-faire market fundamentalism ideology that traces back to Adam Smith and David Ricardo. It includes a belief in comparative advantage, a minimalist state, and market freedom, and is, as articulated in the 1990s and 2000s, driven by finance capital. At the state level, neo-liberalism defines a theory of public administration. If neo-liberalism includes a commitment to market fundamentalism, then that also means that it is dedicated to a politics of limited government. This includes privatization, deregulation, and a scaling back of many traditional functions that capitalist and communist states had performed since at least World War II. But neo-liberalism as a theory transcends the state, providing also an international economic theory committed to free trade and globalism.

This emergence of neo-liberalism in the 1970s and its linkage to democracy is central to the crisis affecting the latter. As neo-liberalism retrenched the welfare state and pushed globalism it was accompanied by a dramatic increase in economic inequality in the world, as Thomas Piketty has pointed out. This occurred in the US and much of the western world. But it also impacted newly emerging democracies in Africa, Eastern Europe, and South America. Pressures for shock therapy market reforms, austerity, and open borders meant export of jobs to other countries, dismantling of social safety nets, and other economic pressures placed on governments and ruling parties.

Politically voters turned on globalism and free trade. This happened here with Trump voters in 2016, but also in Brexit in the UK. But many voters also blamed immigrants for the loss of jobs or social unrest in places ranging from France, to Italy, to Hungary. The increasing economic gap between rich and poor and, more importantly, the erosion of the economic conditions of the working class soured them on democracy. This paved the way for the emergence of strongmen as political leaders, the rise of far-right nationalist parties, and disenchantment with democracy and democratic structures to deliver the economic goods.

What we see today then in terms of the decline in support for democracy across the world is a product of its marriage to neo-liberalism. Capitalism and democracy always had an uneasy co-existence, but the neo-liberal democracy variant demonstrates the powerful contradictions in them. Either their linkage is producing outright rejection of democracy or a populist, rightist version that is merely democracy in form but not in substance.