Gaius Publius: Defining Neoliberalism

By Yves Smith

Source: Naked Capitalism

For years I’ve been using the term “neoliberalism” (or sometimes neo-liberalism*) and I’m always uncomfortable, since it sounds so academic. So I usually add one-phrase definitions and move on. For example, this from a recent piece on Puerto Rico:

If neoliberalism is the belief that the proper role of government is to enrich the rich — in Democratic circles they call it “wealth creation” to hide the recipients; Republicans are much more blatant — then the “shock doctrine” is its action plan.

That’s sounds pretty blunt, but it’s a true statement, even among academics. See this great interview (start at about 6:15) with Professor Philip Miroski of the University of Notre Dame on how modern neoliberals have come to see the role of government in society. It’s weedy but excellent.

I want to offer our readers a better description of neoliberalism though, yet not get into too many weeds. So consider these excerpts from a longer Guardian essay by the British writer George Monbiot. (My thanks to Naked Capitalism commenter nonclassical for the link and the idea for this piece.)

Neoliberalism — The Invisible Water the West Is Swimming In

We’ll start with Monbiot’s brief intro, just to set the scope of the problem:

Imagine if the people of the Soviet Union had never heard of communism. The ideology that dominates our lives has, for most of us, no name. Mention it in conversation and you’ll be rewarded with a shrug. Even if your listeners have heard the term before, they will struggle to define it. Neoliberalism: do you know what it is?

Ask people to define “neoliberalism,” even if they’ve heard of it, and almost no one can. Yet the comparison of our governing ideology to that of the Soviet Union’s is a good one — like “communism,” or the Soviet Union’s version of it, neoliberalism defines and controls almost everything our government does, no matter which party is in office.

The Birth of Neoliberalism

What is neoliberalism and where did it come from? Monbiot writes:

The term neoliberalism was coined at a meeting in Paris in 1938. Among the delegates were two men who came to define the ideology, Ludwig von Mises and Friedrich Hayek. Both exiles from Austria, they saw social democracy, exemplified by Franklin Roosevelt’s New Deal and the gradual development of Britain’s welfare state, as manifestations of a collectivism that occupied the same spectrum as nazism and communism.

Neoliberalism is an explicit reaction to Franklin Roosevelt and the welfare state, which by a quirk of history was called “liberalism” at the time, even though, in the nineteenth century, “liberalism” had roughly the same meaning that “neoliberalism” has today. In other words, “FDR liberalism” is in many ways the opposite of classical “liberalism,” which meant “liberty (freedom) from government,” and a quirk of history has confused these terms.

Back to Monbiot and Hayek:

In The Road to Serfdom, published in 1944, Hayek argued that government planning, by crushing individualism, would lead inexorably to totalitarian control. Like Mises’s book Bureaucracy, The Road to Serfdom was widely read. It came to the attention of some very wealthy people, who saw in the philosophy an opportunity to free themselves from regulation and tax. When, in 1947, Hayek founded the first organisation that would spread the doctrine of neoliberalism – the Mont Pelerin Society – it was supported financially by millionaires and their foundations.

With their help, he began to create what Daniel Stedman Jones describes in Masters of the Universe as “a kind of neoliberal international” [a term modeled on “the Communist International]: a transatlantic network of academics, businessmen, journalists and activists. The movement’s rich backers funded a series of thinktanks which would refine and promote the ideology. Among them were the American Enterprise Institute, the Heritage Foundation, the Cato Institute, the Institute of Economic Affairs, the Centre for Policy Studies and the Adam Smith Institute. They also financed academic positions and departments, particularly at the universities of Chicago and Virginia.

As it evolved, neoliberalism became more strident. Hayek’s view that governments should regulate competition to prevent monopolies from forming gave way – among American apostles such as Milton Friedman – to the belief that monopoly power could be seen as a reward for efficiency.

Note the mention of Milton Friedman above. Neoliberalism is a bipartisan ideology, not just a Clintonist-Obamist one.

Democrats, Republicans and Neoliberalism

As Monbiot explains, for a while neoliberalism “lost its name” and was more or less a fringe ideology in a world still dominated by the ideas of John Maynard Keynes and Keynesian economics. When neoliberalism later came back strong in the Republican Party, it wasn’t called “neoliberalism” but “Milton Friedman free market conservativism,” or something similar.

Only when Bill Clinton and his Democratic Party allies adopted it in the 1980s did the term “neoliberal” re-emerge in public discourse.

[I]n the 1970s, when Keynesian policies began to fall apart and economic crises struck on both sides of the Atlantic, neoliberal ideas began to enter the mainstream. As Friedman remarked, “when the time came that you had to change … there was an alternative ready there to be picked up”. With the help of sympathetic journalists and political advisers, elements of neoliberalism, especially its prescriptions for monetary policy, were adopted by Jimmy Carter’s administration in the US and Jim Callaghan’s government in Britain.

After Margaret Thatcher and Ronald Reagan took power, the rest of the package soon followed: massive tax cuts for the rich, the crushing of trade unions, deregulation, privatisation, outsourcing and competition in public services. Through the IMF, the World Bank, the Maastricht treaty and the World Trade Organisation, neoliberal policies were imposed – often without democratic consent – on much of the world. Most remarkable was its adoption among parties that once belonged to the left: Labour and the Democrats, for example. [emphasis added]

Note the role of Jimmy Carter and start of deregulation in the late 1970s. For that reason, many consider Jimmy Carter to be the “proto-neoliberal,” both for the nation and the Democratic Party.

Neoliberalism — “Just Deserts” for Predators and Prey

What makes “neoliberalism” or “free market conservatism” such a radical — and destructive — ideology? It reduces all human activity to economic competition. It creates and glorifies, in other words, a world of predators and prey, a world like the one we live in as today:

Neoliberalism sees competition as the defining characteristic of human relations. It redefines citizens as consumers, whose democratic choices are best exercised by buying and selling, a process that rewards merit and punishes inefficiency. It maintains that “the market” delivers benefits that could never be achieved by planning.

In a world where competition is right and good, a world in which the “market” is the defining metaphor for human activity, all social ties are broken, the individual is an atom left to survive as an individual only, the strongest relentlessly consume the weakest — and that’s as it should be. (It’s easy to imagine how the apex predators of our social order would be attracted to this, and insist on it with force.

Thus the bipartisan world we live in today. Under a neoliberal regime, everyone gets what they deserve. Big fish deserve their meal. Little fish deserve their death. And government sets the table for the feast.

The Role of Government in a Neoliberal World

Since for neoliberals, the “market” is the source of all that is good in human interaction, non-interference in “the market” is rule one for government.

Over time that has changed, however, as winners have grown more successful and their control of government more absolute. The proper role of government in today’s neoliberal regime is not merely to allow the market to operate for the benefit of wealth-holders; it’s to make sure the market operates for the benefit of wealth-holders.

In other words, the role of government is to intervene in the market on behalf of wealth-holders, or, as I put it more colloquially, to proactively enrich the rich. The interview with Professor Mirowski, as I noted above, makes that same point, but from an academic standpoint.

From this it should be also clear that until we free ourselves of rule by neoliberals and the pain and misery they create, we’ll always be victims to the predatory giants — the very very wealthy and the corporations they use as power-extenders — those, in other words, who want merely to own everything else in the world.

This means we need to free ourselves from neoliberals in both parties, not just the ones in current seats of power. But that idea seems to have been excised from most discussions these days. Fair warning though. If the Age of Trump ends with the Restoration of Mainstream Democrats, we’ll have won almost nothing at all.

____________

* I sometimes spell “neo-liberalism” with the hyphen to suggest the following connection: Neo-liberalism is “new liberalism,” and has the same relationship to FDR liberalism as New Labour has to Labour — the two are exactly opposite.

The Other Side of the Post’s Katharine Graham

By Norman Solomon

Source: Consortium News

Movie critics are already hailing “The Post,” directed by Steven Spielberg and starring Meryl Streep as Washington Post publisher Katharine Graham. Millions of people will see the film in early winter. But the real-life political story of Graham and her newspaper is not a narrative that’s headed to the multiplexes.

“The Post” comes 20 years after Graham’s autobiography Personal History appeared and won enormous praise. Read as a memoir, the book is a poignant account of Graham’s long quest to overcome sexism, learn the newspaper business and gain self-esteem. Read as media history, however, it is deceptive.

“I don’t believe that whom I was or wasn’t friends with interfered with our reporting at any of our publications,” Graham wrote. However, Robert Parry — who was a Washington correspondent for Newsweek during the last three years of the 1980s — has shed some light on the shadows of Graham’s reassuring prose. Contrary to the claims in her book, Parry said he witnessed “self-censorship because of the coziness between Post-Newsweek executives and senior national security figures.”

Among Parry’s examples: “On one occasion in 1987, I was told that my story about the CIA funneling anti-Sandinista money through Nicaragua’s Catholic Church had been watered down because the story needed to be run past Mrs. Graham, and Henry Kissinger was her house guest that weekend. Apparently, there was fear among the top editors that the story as written might cause some consternation.” (The 1996 memoir of former CIA Director Robert Gates confirmed that Parry had the story right all along.)

Graham’s book exudes affection for Kissinger as well as Robert McNamara and other luminaries of various administrations who remained her close friends until she died in 2001. To Graham, men like McNamara and Kissinger — the main war architects for Presidents Lyndon Johnson and Richard Nixon — were wonderful human beings.

In sharp contrast, Graham devoted dozens of righteous pages to vilifying Post press operators who went on strike in 1975. She stressed the damage done to printing equipment as the walkout began and “the unforgivable acts of violence throughout the strike.” It is a profound commentary on her outlook that thuggish deeds by a few of the strikers were “unforgivable” — but men like McNamara and Kissinger were lovable after they oversaw horrendous slaughter in Southeast Asia.

Graham’s autobiography portrays union stalwarts as mostly ruffians or dupes. “Only a handful of [Newspaper Guild] members had gone out for reasons I respected,” she told readers. “One was John Hanrahan, a good reporter and a nice man who came from a longtime labor family and simply couldn’t cross a picket line. He never did come back. Living your beliefs is a rare virtue and greatly to be admired.”

But for Hanrahan (whose Republican parents actually never belonged to a union) the admiration was far from mutual. As he put it, “The Washington Post under Katharine Graham pioneered the union-busting ‘replacement worker’ strategy that Ronald Reagan subsequently used against the air-traffic controllers and that corporate America — in the Caterpillar, Bridgestone/Firestone and other strikes — used to throw thousands of workers out of their jobs in the 1980s and the ’90s.”

The Washington Post deserves credit for publishing sections of the Pentagon Papers immediately after a federal court injunction in mid-June 1971 stopped the New York Times from continuing to print excerpts from the secret document. That’s the high point of the Washington Post’s record in relation to the Vietnam War. The newspaper strongly supported the war for many years.

Yet Graham’s book avoids any semblance of introspection about the Vietnam War and the human costs of the Post’s support for it. Her book recounts that she huddled with a writer in line to take charge of the editorial page in August 1966: “We agreed that the Post ought to work its way out of the very supportive editorial position it had taken, but we couldn’t be precipitous; we had to move away gradually from where we had been.” Vast carnage resulted from such unwillingness to be “precipitous.”

Although widely touted as a feminist parable, Graham’s Pulitzer Prize-winning autobiography is notably bereft of solidarity for women without affluence or white skin. They barely seemed to exist in her range of vision; painful realities of class and racial biases were dim, faraway specks. Overall the 625-page book gives short shrift to the unrich and unfamous, whose lives are peripheral to the drama played out by the wealthy publisher’s dazzling peers. The name of Martin Luther King Jr. does not appear in her star-studded, history-drenched book.

Katharine Graham’s decision to publish the Pentagon Papers was indeed laudable, helping to expose lies that had greased the wheels of the war machinery with such horrific consequences in Vietnam. But the Washington Post was instrumental in avidly promoting the lies that made the Vietnam War possible in the first place. No amount of rave reviews or Oscar nominations for “The Post” will change that awful truth.

 

Norman Solomon is the coordinator of the online activist group RootsAction.org and the executive director of the Institute for Public Accuracy. He is the author of a dozen books including “War Made Easy: How Presidents and Pundits Keep Spinning Us to Death.”

The End of Empire

The brutality abroad is matched by a growing brutality at home.

By

The American empire is coming to an end. The U.S. economy is being drained by wars in the Middle East and vast military expansion around the globe. It is burdened by growing deficits, along with the devastating effects of deindustrialization and global trade agreements. Our democracy has been captured and destroyed by corporations that steadily demand more tax cuts, more deregulation and impunity from prosecution for massive acts of financial fraud, all the while looting trillions from the U.S. treasury in the form of bailouts. The nation has lost the power and respect needed to induce allies in Europe, Latin America, Asia and Africa to do its bidding. Add to this the mounting destruction caused by climate change and you have a recipe for an emerging dystopia. Overseeing this descent at the highest levels of the federal and state governments is a motley collection of imbeciles, con artists, thieves, opportunists and warmongering generals. And to be clear, I am speaking about Democrats, too.

The empire will limp along, steadily losing influence until the dollar is dropped as the world’s reserve currency, plunging the United States into a crippling depression and instantly forcing a massive contraction of its military machine.

Short of a sudden and widespread popular revolt, which does not seem likely, the death spiral appears unstoppable, meaning the United States as we know it will no longer exist within a decade or, at most, two. The global vacuum we leave behind will be filled by China, already establishing itself as an economic and military juggernaut, or perhaps there will be a multipolar world carved up among Russia, China, India, Brazil, Turkey, South Africa and a few other states. Or maybe the void will be filled, as the historian Alfred W. McCoy writes in his book “In the Shadows of the American Century: The Rise and Decline of US Global Power,” by “a coalition of transnational corporations, multilateral military forces like NATO, and an international financial leadership self-selected at Davos and Bilderberg” that will “forge a supranational nexus to supersede any nation or empire.”

Under every measurement, from financial growth and infrastructure investment to advanced technology, including supercomputers, space weaponry and cyberwarfare, we are being rapidly overtaken by the Chinese. “In April 2015 the U.S. Department of Agriculture suggested that the American economy would grow by nearly 50 percent over the next 15 years, while China’s would triple and come close to surpassing America’s in 2030,” McCoy noted. China became the world’s second largest economy in 2010, the same year it became the world’s leading manufacturing nation, pushing aside a United States that had dominated the world’s manufacturing for a century. The Department of Defense issued a sober report titled “At Our Own Peril: DoD Risk Assessment in a Post-Primacy World.” It found that the U.S. military “no longer enjoys an unassailable position versus state competitors,” and “it no longer can … automatically generate consistent and sustained local military superiority at range.” McCoy predicts the collapse will come by 2030.

Empires in decay embrace an almost willful suicide. Blinded by their hubris and unable to face the reality of their diminishing power, they retreat into a fantasy world where hard and unpleasant facts no longer intrude. They replace diplomacy, multilateralism and politics with unilateral threats and the blunt instrument of war.

This collective self-delusion saw the United States make the greatest strategic blunder in its history, one that sounded the death knell of the empire—the invasion of Afghanistan and Iraq. The architects of the war in the George W. Bush White House, and the array of useful idiots in the press and academia who were cheerleaders for it, knew very little about the countries being invaded, were stunningly naive about the effects of industrial warfare and were blindsided by the ferocious blowback. They stated, and probably believed, that Saddam Hussein had weapons of mass destruction, although they had no valid evidence to support this claim. They insisted that democracy would be implanted in Baghdad and spread across the Middle East. They assured the public that U.S. troops would be greeted by grateful Iraqis and Afghans as liberators. They promised that oil revenues would cover the cost of reconstruction. They insisted that the bold and quick military strike—“shock and awe”—would restore American hegemony in the region and dominance in the world. It did the opposite. As Zbigniew Brzezinski noted, this “unilateral war of choice against Iraq precipitated a widespread delegitimation of U.S. foreign policy.”

Historians of empire call these military fiascos, a feature of all late empires, examples of “micro-militarism.” The Athenians engaged in micro-militarism when during the Peloponnesian War (431-404 B.C.) they invaded Sicily, suffering the loss of 200 ships and thousands of soldiers and triggering revolts throughout the empire. Britain did so in 1956 when it attacked Egypt in a dispute over the nationalization of the Suez Canal and then quickly had to withdraw in humiliation, empowering a string of Arab nationalist leaders such as Egypt’s Gamal Abdel Nasser and dooming British rule over the nation’s few remaining colonies. Neither of these empires recovered.

“While rising empires are often judicious, even rational in their application of armed force for conquest and control of overseas dominions, fading empires are inclined to ill-considered displays of power, dreaming of bold military masterstrokes that would somehow recoup lost prestige and power,” McCoy writes. “Often irrational even from an imperial point of view, these micromilitary operations can yield hemorrhaging expenditures or humiliating defeats that only accelerate the process already under way.”

Empires need more than force to dominate other nations. They need a mystique. This mystique—a mask for imperial plunder, repression and exploitation—seduces some native elites, who become willing to do the bidding of the imperial power or at least remain passive. And it provides a patina of civility and even nobility to justify to those at home the costs in blood and money needed to maintain empire. The parliamentary system of government that Britain replicated in appearance in the colonies, and the introduction of British sports such as polo, cricket and horse racing, along with elaborately uniformed viceroys and the pageantry of royalty, were buttressed by what the colonialists said was the invincibility of their navy and army. England was able to hold its empire together from 1815 to 1914 before being forced into a steady retreat. America’s high-blown rhetoric about democracy, liberty and equality, along with basketball, baseball and Hollywood, as well as our own deification of the military, entranced and cowed much of the globe in the wake of World War II. Behind the scenes, of course, the CIA used its bag of dirty tricks to orchestrate coups, fix elections and carry out assassinations, black propaganda campaigns, bribery, blackmail, intimidation and torture. But none of this works anymore.

The loss of the mystique is crippling. It makes it hard to find pliant surrogates to administer the empire, as we have seen in Iraq and Afghanistan. The photographs of physical abuse and sexual humiliation imposed on Arab prisoners at Abu Ghraib inflamed the Muslim world and fed al-Qaida and later Islamic State with new recruits. The assassination of Osama bin Laden and a host of other jihadist leaders, including the U.S. citizen Anwar al-Awlaki, openly mocked the concept of the rule of law. The hundreds of thousands of dead and millions of refugees fleeing our debacles in the Middle East, along with the near-constant threat from militarized aerial drones, exposed us as state terrorists. We have exercised in the Middle East the U.S. military’s penchant for widespread atrocities, indiscriminate violence, lies and blundering miscalculations, actions that led to our defeat in Vietnam.

The brutality abroad is matched by a growing brutality at home. Militarized police gun down mostly unarmed, poor people of color and fill a system of penitentiaries and jails that hold a staggering 25 percent of the world’s prisoners although Americans represent only 5 percent of global population. Many of our cities are in ruins. Our public transportation system is a shambles. Our educational system is in steep decline and being privatized. Opioid addiction, suicide, mass shootings, depression and morbid obesity plague a population that has fallen into profound despair. The deep disillusionment and anger that led to Donald Trump’s election—a reaction to the corporate coup d’état and the poverty afflicting at least half of the country—have destroyed the myth of a functioning democracy. Presidential tweets and rhetoric celebrate hate, racism and bigotry and taunt the weak and the vulnerable. The president in an address before the United Nations threatened to obliterate another nation in an act of genocide. We are worldwide objects of ridicule and hatred. The foreboding for the future is expressed in the rash of dystopian films, motion pictures that no longer perpetuate American virtue and exceptionalism or the myth of human progress.

“The demise of the United States as the preeminent global power could come far more quickly than anyone imagines,” McCoy writes. “Despite the aura of omnipotence empires often project, most are surprisingly fragile, lacking the inherent strength of even a modest nation-state. Indeed, a glance at their history should remind us that the greatest of them are susceptible to collapse from diverse causes, with fiscal pressures usually a prime factor. For the better part of two centuries, the security and prosperity of the homeland has been the main objective for most stable states, making foreign or imperial adventures an expendable option, usually allocated no more than 5 percent of the domestic budget. Without the financing that arises almost organically inside a sovereign nation, empires are famously predatory in their relentless hunt for plunder or profit—witness the Atlantic slave trade, Belgium’s rubber lust in the Congo, British India’s opium commerce, the Third Reich’s rape of Europe, or the Soviet exploitation of Eastern Europe.”

When revenues shrink or collapse, McCoy points out, “empires become brittle.”

“So delicate is their ecology of power that, when things start to go truly wrong, empires regularly unravel with unholy speed: just a year for Portugal, two years for the Soviet Union, eight years for France, eleven years for the Ottomans, seventeen for Great Britain, and, in all likelihood, just twenty-seven years for the United States, counting from the crucial year 2003 [when the U.S. invaded Iraq],” he writes.

Many of the estimated 69 empires that have existed throughout history lacked competent leadership in their decline, having ceded power to monstrosities such as the Roman emperors Caligula and Nero. In the United States, the reins of authority may be in the grasp of the first in a line of depraved demagogues.

“For the majority of Americans, the 2020s will likely be remembered as a demoralizing decade of rising prices, stagnant wages, and fading international competitiveness,” McCoy writes. The loss of the dollar as the global reserve currency will see the U.S. unable to pay for its huge deficits by selling Treasury bonds, which will be drastically devalued at that point. There will be a massive rise in the cost of imports. Unemployment will explode. Domestic clashes over what McCoy calls “insubstantial issues” will fuel a dangerous hypernationalism that could morph into an American fascism.

A discredited elite, suspicious and even paranoid in an age of decline, will see enemies everywhere. The array of instruments created for global dominance—wholesale surveillance, the evisceration of civil liberties, sophisticated torture techniques, militarized police, the massive prison system, the thousands of militarized drones and satellites—will be employed in the homeland. The empire will collapse and the nation will consume itself within our lifetimes if we do not wrest power from those who rule the corporate state.

Zucktown, USA

Facebook, Amazon, and Google are reviving the ill-fated “company towns” of the Gilded Age

By Julianne Tveten

Source: The Baffler

EARLIER THIS YEAR IN SILICON VALLEY, a phalanx of six-figure-earning Facebook engineers confronted Mark Zuckerberg about subsidizing their extortionate rents. Meanwhile, the contract laborers who serve them bacon kimchi dogs and duck confit found themselves cordoned off from the affordable housing market—where salaries approaching $74,000 qualify—and began converting their garages into homes. Still, if these events point to a dire situation, they’re but the latest stirrings of the hulking leviathan that is the region’s housing crisis—an issue that has peppered the headlines of news outlets great and small for nearly a decade.

Thanks in part to this accretion of bad press, Zuckerberg and his fellow cyborgian billionaires have sprung into action as property developers. In July, Facebook announced plans to create “Willow Campus,” an aggressively rectilinear, Rem Koolhaas-designed rebrand of a Menlo Park office complex it purchased in 2015. The expansion of its headquarters will boast fifteen hundred units of housing, 15 percent of which it claims will be “offered at below-market rates.” If that isn’t sufficiently microcosmic, the company promises to dedicate 125,000 square feet to commercial space, promising a grocery store, pharmacy, and the cryptically worded “additional community-facing retail.”

Equally if not more responsible for crafting California’s bloodsucking geometric crapscape is Google, whose newfangled parent company Alphabet has vowed to provide temporary housing, in the form of modular dwellings, for three hundred of its employees in its home city of Mountain View. For years, Google has been seeking to wrest control of the city from its government; last year, it gained over 370,000 square feet of office space along with the right to develop 1.4 million square feet in the North Bayshore neighborhood after vying with LinkedIn to furnish the territory with a new police station, road improvements, and college scholarships. (The modular homes will be constructed on a former NASA air base, which the company signed an agreement to lease for sixty years.)


We’re witnessing, in these schemes, a revival of the company town. An oft-recurring feature of the Western capitalist imaginary, the company town’s American variety dates back to the nineteenth century; railroad industrialist George Pullman’s eponymous city in Illinois provides one of the more illustrative examples. Pullman characterized his town, completed in 1884, as a lucrative, pro-business utopia filled with satisfied participants, employee and investor alike. Its veneer was indeed shiny: the amenities it promised—yards, indoor plumbing, gas, trash removal—were rare for industrial workers of the time, and its ultra-formal gardens and shopping center, which equipped them with a barbershop, dentist’s offices, a bank, and a slew of overpriced retail, offered a vanguard capitalist’s dabbling in luxury.

There was a catch: paternalistic and omnipresent capitalism. Immaculately manicured trees were merely curtains obscuring a panopticon, one that kept workers behaviorally economized. (White workers, that is—the town expressly excluded black people.) “[Pullman] wanted to create a company town where everybody would be . . . content with their place in the capitalist system,” Jane Eva Baxter explained to Paleofuture. Workers were forced to rent—with no option to buy—the uniform row houses that corralled them, and from which they worried over persistent inspection and imminent eviction. Their employers likewise controlled which books filled their libraries and which performances took place in their theaters, and a ban precluded them from congregating at saloons or holding town meetings unless sanctioned by the Pullman Company, lest they entertain the notion of unionizing.

The forced exchange not just of labor, but of personal autonomy, for the tenuous ability to buy bread or light one’s stove is, in a word, inhumane, and in three, cause for revolt. Pullman workers had organized several strikes throughout the 1880s, but none were so monumental as the one in 1894. In response to the prior year’s economic depression, Pullman opted to slash workers’ wages; rents, however, remained steadfastly fixed, enriching the company’s reported worth of $62 million while leaving workers with as little as two cents (after paying for housing costs). In partnership with the American Railway Union, four thousand Pullman workers, galvanized and desperate, withheld their labor, and legions of workers throughout the nation would soon join them. Yet the strike collapsed when the Cleveland administration, in a violent display of authoritarianism, deployed federal troops and imprisoned labor leaders. Not long after, by Illinois Supreme Court order, the town was forced to sell everything not used expressly for “industry.”

Still, Pullman’s fiasco didn’t discourage other magnates. In 1900, chocolatier Milton Hershey began construction on a factory complex near a collection of dairy farms in rural Pennsylvania, where he declared there’d be “no poverty, no nuisances, no evil”—a Delphic precursor to Google’s now infamous and defunct slogan, “Don’t be evil.” To attract workers, Hershey reclaimed many of Pullman’s gilded comforts: indoor plumbing, pristine lawns, central heating, garbage pickup, and eventually, the theaters and sports venues any company town worth its salt would host.

What was designed as a wholesome advertisement for the company quickly morphed into a miserly surveillance state. Hershey, who served as the town’s mayor, constable, and fire chief, patrolled neighborhoods to survey the maintenance of houses and hired private detectives to monitor employees’ after-hours alcohol consumption. While the town managed to stage a sort of idyllic capitalist performance for onlookers, by the 1930s its employees resented their binding environs and the Depression-era layoffs they endured from a company earning ten times its annual payroll in after-tax profits. A crippled attempt to unionize with the Congress of Industrial Organizations (CIO) bred a 1937 sit-down strike; days later, farmers and company cheerleaders armed with rocks and pitchforks bloodied and ejected the dissidents, destabilizing for good another corporate-civic lark. Hershey’s vast estate, however, remains unscathed to this day.


If Facebook and Google have begun to revive the company town, Amazon has already given it a futuristic luster. California’s inchoate company towns pale in comparison to their northern counterpart, which occupies 19 percent of Seattle’s office space and a farcical 8.1 million square feet. (Its CEO and founder, Jeff Bezos, has vowed to acquire four million more over the next five years, a muscular move meant to complement his midlife-crisis physique.) Touting its sponsorship of local engineering and sustainability programs, Amazon crows about such “investments” as its dog park, playing fields, art installations, and Buckyball-reminiscent domical gardens. Of course, with Bezos’s colonizing aspirations comes yet another bellicose rental market—the very conditions Facebook and Google claim to be combatting. When considered alongside its recent purchase of Whole Foods, Amazon’s dream of tethering its employees to their jobs—by way of homogenized cubes for rent and lightly discounted quinoa chips—is fast becoming a reality.

Like George Pullman and Milton Hershey, the tech industry’s elites take all prisoners in their respective campaigns to expand, absorb, and dominate. The tech company town, that most contemporary of neofeudalist wangles, is the next step in West Coast corporate behemoths’ quest to lure employees into a twenty-four-hour working existence—the totalizing successor to bottomless Indian food spreads, on-site bike-repair shops, and Frank Gehrized habitats. Its premise deviates not at all from that of its antecedents: a genial, painstakingly aestheticized service to workers, where beneficent corporate hands take the reins of the public good  for the well-being of the community. This time around, though, that community will be bridled with unionbusting and data-harvesting apparatuses sure to make even the most paranoid techno-tyrant salivate.

Certainly, the megalomaniacs who aim to populate municipal fixtures with registered-trademark logos will expect cities to genuflect at every turn. Bezos has exemplified this in Seattle, whose recent measure to “tax the rich” drove him to seek another location in which to build Amazon’s second headquarters. While residents of its hometown grapple with a commandeering leech that “suck[s] up our resources and refus[es] to participate in daily upkeep,” Amazon will soon attempt to prime another city to be sapped. Meanwhile, the smooth-faced metallic vampires of California have just begun to cosplay as frontiersmen, raring to follow Bezos’s lead. Drunk on glib TED Talk propagandizing, and accustomed to dismissing the civic inconveniences of corporate regulations and poor neighborhoods, our technosettlers feel little need to heed the lessons of the past when their chief interest is to monopolize the future. Taxing the techie billionaires is a start, but only when cities refuse to be their hosts will they cease to be their parasites.

 

Julianne Tveten writes about the technology industry’s relationship with socioeconomics and culture. Her work has appeared in Current Affairs, Hazlitt, In These Times, The Outline, and elsewhere.

The Seeds of Anti-Capitalist Revolt Found in Everyday Resistance: A Review of Guerrillas of Desire – Notes on Everyday Resistance and Organizing to Make a Revolution Possible by Kevin Van Meter (AK Press, 2017)

By Scott Campbell

Source: Institute for Anarchist Studies

Back when I first began selling my labor for a wage in the wasteland of suburbia’s strip malls, I can recall the tedium of stocking shelves, summoning up insincere courtesy in the face of entitled customers and obnoxious bosses, comparing the stacks of money counted at the end of the day with the totals on our paychecks, and feigning adherence to whatever motivational façade management cooked up to mask the reality of our exploitation.

Yet I also remember, much more vividly and fondly, the latent and occasionally eruptive defiance among my co-workers. This included the constant collective complaining about the job, taking more and longer-than-approved breaks, working as little as possible, fudging time sheets, stealing, and the intermittent screaming matches with the boss in the middle of the store. Underpinning all these actions was an unspoken but broadly understood code of silence when it came to such transgressions and, when appropriate, expressions of support for them.

At the time, I didn’t think much about this, it was just how things happened and I’ve encountered similar experiences to varying degrees in every workplace since. Our actions weren’t guided by a political framework nor was there any attempt to organize them in a directed manner. It was more a spontaneous, innate reaction to experiencing the coercion of capitalism. I had cause to reflect upon this anew while reading Kevin Van Meter’s new book, Guerrillas of Desire: Notes on Everyday Resistance and Organizing to Make a Revolution Possible, published by AK Press and the Institute for Anarchist Studies.

In the preface, Van Meter observes that the question motivating him is not “What is to be done?” but “How do people become what they are?” Throughout the course of the book he seeks to provide an answer by locating power in the resistance of workers, apart from any political ideology or organization. Whether and how that inherently anti-capitalist refusal of work develops into revolt or rebellion are the questions he compellingly urges us to reflect and act upon.

To reach that point, Guerrillas of Desire ambitiously takes on multiple tasks that feed into and build on one another. Van Meter initiates a dialogue between anarchism and Autonomist Marxism that leads to a reconceptualization of the working class, bolstered in part by a historical accounting of workplace actions such as the ones I recounted. He labels these “everyday resistance,” committed by “guerrillas of desire,” and proposes a focus on those deeds as the entry point for organizing revolutionary resistance to capitalism. The impetus for this initiative, concisely carried out in under 160 pages, is his proposal that the current approach to organizing is conceptually flawed and therefore destined to fail. “Guerrillas of Desire offers a contentious hypothesis: the fundamental assumption underlying Left and radical organizing, including many strains of anarchism, is wrong. I do not mean organizationally dishonest, ideologically inappropriate, or immoral. I mean empirically incorrect” (13). The incorrect basis for current organizing is the assumption that the poor and working classes are unorganized and passive and that it therefore rests upon activists and organizations to educate and mobilize them for their own sakes. Van Meter instead proposes that there is in fact informal organization and resistance occurring, it is just of a sort that does not fit within the Left’s organizing vision and therefore goes unseen, unrecognized, and unincorporated into political theories, analysis, and action.

To provide a political frame for understanding the “everyday resistance” of the working class, Van Meter draws upon anarchism’s mutual aid – the material and emotional cooperation and reciprocal support that exists in societies – with Autonomist Marxism’s self-valorization – autonomous working class action that counters the state and capitalism, primarily the refusal of work in its myriad forms. Combined together and reinforcing one another, mutual aid and the refusal of work comprise the “everyday resistance” of the working class.

These phenomena also give definition to what is meant by “working class,” which Van Meter defines as “autonomous from both capitalism and the official organization of the Left, broadly including all those who work under capitalism, based in relationships between workers rather than as a structural component of the economy or sociological category” (32). Rather than being premised on income, occupation, or union membership, the working class under Van Meter’s formulation is made up of all those who must perform work under capitalism – be it waged or unwaged, in the factory, home, office, bedroom, affective, or social spheres. However, when they are not taking action in response to their subjugation under capitalism, these people are just workers. They become a class through the process of struggling against the conditions imposed upon them by capitalism. This struggle initially takes the form of everyday resistance based on mutual aid and the refusal of work. It is everyday resistance that unites individual workers as a class because such resistance, even when performed by one person, requires at a bare minimum the tacit complicity of co-workers and preferably their active collaboration.These acts and the social relationships they create and depend on lay the groundwork for the broader and overt organizing against capitalism more commonly interpreted as working class struggle. Using this framework as offered by Van Meter, we can understand the working class as composed of the relationships forged among workers actively in resistance against capitalism.Without anti-capitalist struggle, the working class does not exist.

After laying this theoretical groundwork, the bulk of the book traces the various forms of resistance by slaves, peasants, and workers in the industrial and social factories (the expansion of capitalist logic from the factory into society at large, in particular in service, immaterial, and reproductive work), creating a lineage and legacy of working class resistance against the various formations of capitalism that spans centuries. “Viewing the working class broadly to include slaves and peasants as well as students, homemakers, immigrants, and factory and office workers reveals the breadth of struggle and generalized revolt against work that continues to be imposed” (128). In doing so, Van Meter further builds the framework of the working class as being formed through its self-activity against the demands and deprivations of capitalism.

The historical survey brings the discussion into the present, where Van Meter offers a proposal to address his initial hypothesis that the Left is carrying out its organizing work in an incorrect way. His suggestion is for the organizers of today and in the future to begin their work by “reading the struggles” already underway in the form of everyday resistance. Through investigation and documentation by organizers, new relationships may be fostered with guerillas of desire that allow everyday resistance to expand into larger and more overt forms of autonomous anti-capitalist struggle. He proposes that the seeds of the new, liberatory worlds sought by anarchism and Autonomist Marxism are to be found in the everyday resistances that are already occurring rather than in the latest organizing manual or official Left strategy document..

While impressed after reading through this formulation, I was left with lingering questions. It remained unclear how, for instance, everyday resistance morphed into more overt, organized resistance and the part organizers positioning themselves as readers of struggle played in such a development. The personal anecdotes he provided on stepping back from ideological assumptions and reorienting towards the collective experiences of communities during his work in Long Island were helpful. It brought to mind the story of Marxist-Leninist intellectuals heading off to the Chiapan jungle with grand plans of starting a peasant guerrilla force. Only when they arrived, they found the population had no time or interest in their grandiose ideology. It was only when they dropped their assumptions and worked within the community to understand its needs, concerns and own history of resistance that the Zapatistas emerged. That, however, is a rather specific and exceptional example. I feel Van Meter’s proposal to begin organizing from within everyday resistance based on the notion that it will lead to more overt resistance could benefit from further articulation and direction.

Similarly, the focus on work as existing solely within the capitalist sphere left me curious as to his vision of the place of non-leisure activity under capitalism or even after capitalism. The refusal of the work that maintains capitalism is indispensable. Yet I would not advocate the refusal of work that maintains communal and personal well-being or builds autonomous organization, or writes books reviews in spare time, for example. Certainly, Van Meter would not advocate that either, but it remains a matter necessitating clarification and one that I believe extends beyond an issue of semantics.

Despite those questions, Guerrillas of Desire is aspirational in its scope and contains ideas and proposals worthy of consideration by radicals reflecting on how to engage in the current moment. In a time when mobilizing and organizing around class has fallen off the radar of many, it is a welcome reminder of the importance of paying attention to the working class and the integral role working class struggle plays in resistance to capitalism, alongside the currently more prevalent resistances to capitalist white supremacy, heteropatriarchy, colonization, environmental destruction and more.

Van Meter assists in this advocacy by accessibly presenting an updated Autonomist Marxist perspective of the working class, expanding it, breathing life into, and imbuing it with its own power, separate from both capitalism and the official Left. As such, he allows readers who may toil in a variety of ways under capitalism to see themselves within the working class, conceptualize their activities as part of a broader resistance with a rich history, and inspire them to build on that legacy.

 

Scott Campbell is a radical writer and translator based in California. He is part of the collectives that publish the websites El Enemigo Común and It’s Going Down. His personal site is fallingintoincandescence.com

Guerrillas of Desire is available here!

 

Why We’re Doomed: Our Economy’s Toxic Inequality

By Charles Hugh Smith

Source: Of Two Minds

Anyone who thinks our toxic financial system is stable is delusional.

Why are we doomed? Those consuming over-amped “news” feeds may be tempted to answer the culture wars, nuclear war with North Korea or the Trump Presidency.

The one guaranteed source of doom is our broken financial system, which is visible in this chart of income inequality from the New York Times: Our Broken Economy, in One Simple Chart.

While the essay’s title is our broken economy, the source of this toxic concentration of income, wealth and power in the top 1/10th of 1% is more specifically our broken financial system.

What few observers understand is rapidly accelerating inequality is the only possible output of a fully financialized economy. Various do-gooders on the left and right propose schemes to cap this extraordinary rise in the concentration of income, wealth and power, for example, increasing taxes on the super-rich and lowering taxes on the working poor and middle class, but these are band-aids applied to a metastasizing tumor: financialization, which commoditizes labor, goods, services and financial instruments and funnels the income and wealth to the very apex of the wealth-power pyramid.

Take a moment to ponder what this chart is telling us about our financial system and economy. 35+ years ago, lower income households enjoyed the highest rates of income growth; the higher the income, the lower the rate of income growth.

This trend hasn’t just reversed; virtually all the income gains are now concentrated in the top 1/100th of 1%, which has pulled away from the top 1%, the top 5% and the top 10%, as well as from the bottom 90%.

The fundamental driver of this profoundly destabilizing dynamic is the disconnect of finance from the real-world economy.

The roots of this disconnect are debt: when we borrow from future earnings and energy production to fund consumption today, we are using finance to ramp up our consumption of real-world goods and services.

In small doses, this use of finance to increase consumption of real-world goods and services is beneficial: economies with access to credit can rapidly boost expansion in ways that economies with little credit cannot.

But the process of financialization is not benign. Financialization turns everything into a commodity that can be traded and leveraged as a financial entity that is no longer firmly connected to the real world.

The process of financialization requires expertise in the financial game, and it places a premium on immense flows of capital and opaque processes: for example, the bundling of debt such as mortgages or student loans into instruments that can be sold and traded.

These instruments can then become the foundation of an entirely new layer of instruments that can be sold and traded. This pyramiding of debt-based “assets” spreads risk throughout the economy while aggregating the gains into the hands of the very few with access to the capital and expertise needed to pass the risk and assets off onto others while keeping the gains.

Profit flows to what’s scarce, and in a financialized economy, goods and services have become commodities, i.e. they are rarely scarce, because somewhere in the global economy new supplies can be brought online.

What’s scarce in a financialized economy is specialized knowledge of financial games such as tax avoidance, arbitrage, packaging collateralized debt obligations and so on.

Though the billionaires who have actually launched real-world businesses get the media attention–Bill Gates, Jeff Bezos, Steve Jobs, et al.–relatively few of the top 1/10th of 1% actually created a real-world business; most are owners of capital with annual incomes of $10 million to $100 million that are finance-generated.

This is only possible in a financialized economy in which finance has become increasingly detached from the real-world economy.

Those with the capital and skills to reap billions in profits from servicing and packaging student loan debt have no interest in whether the education being purchased with the loans has any utility to the indebted students, as their profits flow not from the real world but from the debt itself.

This is how we’ve ended up with an economy characterized by profound dysfunction in the real world of higher education, healthcare, etc., and immense fortunes being earned by a few at the top of the pyramid from the financialized games that have little to no connection to the real-world economy.

Anyone who thinks our toxic financial system is stable is delusional. If history is any guide (and recall that Human Nature hasn’t changed in the 5,000 uears of recorded history), this sort of accelerating income/wealth/ power inequality is profoundly destabilizing–economically, politically and socially.

All the domestic headline crises–culture wars, opioid epidemic, etc.–are not causes of discord: they are symptoms of the inevitable consequences of a toxic financial system that has broken our economy, our system of governance and our society.

Censorship in the Digital Age

By Jason Hirthler

Source: CounterPunch

The grand experiment with western democracy, badly listing thanks to broadsides from profiteering oligarchs, may finally run ashore on the rocks of thought crime. In the uneven Steven Spielberg project Minority Report, starring excitable scientologist Tom Cruise, Cruise plays a futuristic policeman who investigates pre-crimes and stops them before they happen. The police owe their ability to see the criminal plots developing to characters called pre-cognitives, or pre-cogs, kind of autistic prophets who see the future and lie sleeping in sterile pools of water inside the police department. Of course, it turns out that precogs can pre-visualize different futures, a hastily hidden flaw that threatens to jeopardize the profits of the pre-crime project. Here is the crux of the story: thought control is driven by a profit motive at bottom. As it turns out, just like real life.

Now, the British government has decided to prosecute pre-crime but has done away with the clunky plot device of the pre-cogs, opting rather to rely on a hazy sense of higher probability to justify surveilling, nabbing, convicting, and imprisoning British citizens. The crime? Looking at radical content on the Internet. What is considered radical will naturally be defined by the state police who will doubtless be personally incentivized by pre-crime quotas, and institutionally shaped to criminalize trains of thought that threaten to destabilize a criminal status quo. You know, the unregulated monopoly capitalist regime that cuts wages, costs, and all other forms of overhead with psychopathic glee. Even a Grenfell Towers disaster is regarded more as a question of how to remove the story from public consciousness than rectify its wrongs.

The Triple Evils

Martin Luther King, Jr. famously, or infamously, depending on whether you are a penthouse mandarin or garden-variety prole, linked the triple evils of poverty, racism, and militarism. These evils are as yet unaddressed in our society, as we are daily shown on the media mouthpieces of imperial capitalism. Wars must be waged. Victims of social injustice must be incarcerated. Society itself must be made poor to ensure higher profits.

Yet there is another set of evils that are primarily used to mask the original trifecta outlined by King. In fact, the connection between propaganda, surveillance, and censorship is clear and inseparable. Take as your initial premise that imperial capitalists want to control the world. Not an unjustified claim. As an imperial capitalist, you are part of a privileged minority whose objective is to further exploit the disenfranchised whose only recourse is the resources you are pillaging. War, be it with bombs or sanctions or special forces or proxies, is immensely profitable to the capitalists. Arms makers make money. Chemical companies make money. Energy companies make money. Media companies make money. Presidents not only make money, they also make history. But the workers, the poor, and the downtrodden pay the price. That’s why they won’t be happy to hear of your plans. Therefore, they must be lied to, lied to so convincingly and comprehensively that they accept, without a second thought, the plans you have laid out before them.

This convincing requires three decisive actions: propaganda, surveillance, and censorship. The first is the official lie you craft to convince them to believe you. The second is the dragnet of digital observation by which you assess whether or not they do believe you. The third is the coercive methods by which you punish those that don’t believe you (justified by the imperial tale you first wove).

The official interpretation of reality is already in place: western civilization is beset on all sides by maniacs that want to take away our freedoms. The surveillance is already in place through programs like the Five Eyes alliance and ECHELON, PRISM, Boundless Informant, FISA, Stellar Wind, and many others. What remains is to tighten the noose of censorship around the neck of our open western societies.

Idiots Abroad

To that end, British Home Secretary Amber Rudd recently announced that citizens that view too much extremist material online could face up to 15 years in jail. Rudd related,

“I want to make sure those who view despicable terrorist content online, including jihadi websites, far-right propaganda and bomb-making instructions, face the full force of the law.”

This flaxen cipher of totalitarian control opened by tabulating some 67,000 tweets by ISIS, along with 44,000 links to ISIS propaganda, had been generated in the last year. Already, Section 58 of the Terrorist Act 2000 criminalized the possession of information that might be useful to a terrorist. But this is not enough for 10 Downing Street. Rudd is taking that law of possession and expanding it into a law of perception. It is now enough to simply watch extremist content. You needn’t download it, distribute it, or otherwise act on it. You need only see it more than once. At that point, by Rudd’s surely flawlessly calculated probabilities, you have become an existential threat to the state, or rather, to national security. You are more likely to commit acts of terror than those who have not seen the extremist content. Pre-crime without the pre-cogs.

But Rudd’s was another step in a long line of encroachments peddled by fascist-minded western governments. Theresa May, the reviled Thatcherite epigone, wants to play a paternal role in preventing citizens from even having the chance to view extremist content. The Tory manifesto tells us, “Some people say that it is not for government to regulate when it comes to technology and the internet. We disagree.” Britain plans, quite proudly it seems, to become the “global leader” in the regulation of the Internet. Just before these announcements were made, Britain had passed the Investigatory Powers Act, which lets the government sweep up user browsing histories. So the surveillance data authorities would use to implement Rudd’s plan is already there. Want to read that eloquent jeremiad against the Tories? Sorry, that was just labeled hate speech. Want to visit your favorite leftist forum? Apologies, mate, but that was deemed a “safe space” for extremist speech and shut down. Want to watch some attractive young people copulate? No problem. Just submit a request to your local minister outlining your precise reasons for wanting access to such nominally proscribed content. Otherwise, forget it.

The Germans aren’t far behind. The so-called Network Enforcement Act is said to create a framework for managing Internet activity, particularly in social media. The act is part of the country’s fake fight against fake news and hate speech, or rather its quite real fight against progressive, leftist, or communist thought and expression. This law demands, on pain of a fifty million euro penalty, that companies with two million or more web visitors must, on receipt of complaint, remove “unlawful content” from their sites. Facebook has opened a new data center in Germany to deal with removal requests, sure to be flooding in from the Bundestag. As the World Socialist Web Sitemakes clear, if your fake news promotes war (Iraq 2003), mischaracterizes coup d’états (Ukraine 2014), or spreads anti-immigrant hysteria (Cologne 2015), then you’ve got nothing to fear. Of course, it falls to the government itself to decide what is and what isn’t extremist content, no doubt a comforting thought for myriad Der Spiegel loyalists. And, of course, the erstwhile European Commission, destroyer of Greece and perpetrator of other ills, has published guidelines to help member states remove “illegal” content. Even the Russians have joined in, promoting legislation designed to curtail digital freedoms.

Stateside Schlemiels

None of this would be news to Barack Obama, whose own legacy of crumpled writs of habeas corpus, worthless privacy platitudes, and high-altitude wetwork, sits like a canker on the body politic. On his way out the door, through the turnstile of public weal into private gain, he provided the deep state with millions of dollars when he added the Countering Disinformation and Propaganda Act to the annual National Defense Authorization Act (NDAA), which consecrates black budgets, cost overruns, price gouging, and all other manner of insecurity practiced by the Pentagon and its parasitic defense contractor community. The CDPA, if that’s how it will eventually be known, will effectively pay people to generate officially sanctioned narratives. The U.S. government is fighting fact by calling it propaganda and then producing its own propaganda and calling it fact.

Thanks in part to pressure from Congressional Senate Intelligence Committee that, and the indefatigable efforts of Democrats Adam Schiff and Mark Warner, major brands have been hopping on the clanging tumbrel of Russiagate, as it wheels unsteadily through the digital space, collecting the corpses of freethinkers. Facebook is now blocking “fake news” from its ads. YouTube has begun to fetter content producers with a more restrictive ad network and murky review policies. Google has tweaked its algorithm to keep “fake news” from surfacing high in Search Engine Results Pages, or SERPS. What precisely constitutes fake news is evidently up to the Zuckerbergs and Schmidts of the world. For Google, it has decidedly meant suppressing progressive and left-wing content, as plummeting traffic numbers have indicated. Of course, it won’t mean suppressing the fake news produced by the CIA or Mi5 or the standard state-fluffing smorgasbord of lies, deceits and hit jobs offered up by the so-called mainstream media.

The always sharp Glen Ford at Black Agenda Report writes that the FBI has created a fresh construct to deal with African-American unrest, called, “Black Identity Extremism,” already truncated into another mind-murdering acronym, BIE. (As though an acronym adds just the note of tenability required to pass off a fatuity on a mal-educated populace.) Foreign Policy, in an otherwise surprisingly liberal-minded story, suggests the construct risks reviving the racism the agency has worked so hard to overcome. Ford drily notes the overlooked matter of J. Edgar Hoover targeting blacks since the 1920s, not to mention COINTELPRO and attacks on the Black Panthers. Regardless, in the eyes of the FBI, blacks angry about police abuses, persistent economic inequalities, and the New Jim Crow, are little more than “identity extremists,” a danger to national security, notably the security of the white plutocracy which it serves.

(Fore) Closing Thoughts

Remember that much of this apparatus of thought control has been applied beneath the banner of the fake Russia hacking story. That story, created by the Clinton camp to distract from the DNC email revelations provided by WikiLeaks, at first blamed Russia for hacking into “our democracy”, then suggested Donald Trump had colluded with Russia to swing the election, and then emphasized that Russia had launched an “influence campaign” designed to swing the election, with the focus subtly shifting from hacking to collusion to influence. At each turn, the evidence proves paltry, the claims absurd, and the virtue signaling nauseating. The bar is being progressively lowered until it meets a threshold of credibility by which the Senate Intel Committee can prosecute Donald Trump or justify some sort of punitive measures against Russia.

The story is so transparently false, from the technical detail to the geopolitical motive, that it is only sustained by the permanent—or deep state—elements of the foreign policy community that need a means by which to control and direct the Trump administration. Russia collusion served as an ideal pretext to force Trump away from campaign-trail odes to conciliation and toward a continuation of the hostile foreign policies glibly enabled and advanced by Barack Obama. The comedy of it all is that Facebook found ‘incriminating’ ads that amounted to less than one percent of the Facebook total ad buys. Congress would like to ban RT, which has ratings that are 0.3 percent of Judge Judy’s. And the infamous hack has been shown to be a leak. What are we left with? A grandiose deceit based on a need to sustain a brutal ideology of oppression, austerity, and war.

But this is how the imperialists do it. They organize globally to oppress locally. That’s why they’ve been rightly rebranded as ‘the globalists’. The workers always trail behind, left to cope with recently discovered alliances of institutional powers collaborating to fence in the prospects for economic equality, social justice, and the fair distribution of a nation’s wealth. We find ourselves beneath the a pregnant cloud of metastasizing repression, conceived and constructed beneath our own gaze. In his recent novel Purity, one of author Jonathan Franzen’s characters, a famous East German exile and whistleblower extraordinaire (a more charismatic Assange), finds himself a global celebrity, the subject of countless interviews wherein,

“…he’d taken to dropping the word totalitarian. Younger interviewers, to whom the word meant total surveillance, total mind control, gray armies in parade with medium-range missiles, had understood him to be saying something unfair about the Internet. In fact, he simply meant a system that was impossible to opt out of.”

Whether it is too late for a world of working class people and the ubiquitous poor to opt out of the globalized imperium dreamed up by our post-war planners, is hard to say. But if you think there’s still time, be extremely careful, since the pre-crime police are nearly omnipresent, and they might overhear you quoting Marx or see you scrawling ideas about redistribution on the walls of some abandoned underpass. Just imagine some future advertisement for the pre-crime program, a glistening LCD ad floating between skyscrapers, a smiling family at play, a nation secure, and an omniscient narrator softly reminding you, “Don’t forget—it’s the thought that counts.”

The social and economic roots of the attack on democratic rights

Inequality and the American oligarchy

By Eric London

Source: WSWS.org

A report published September 27 by the US Federal Reserve, the Survey of Consumer Finances, shows that the top 10 percent of Americans now own 77 percent of all wealth. The top 1 percent increased its share of wealth from 35.5 percent in 2013 to 38.5 in 2016. The share of the bottom 90 percent declined from 25 percent to 22.9 percent over the same period.

These percentages show a transfer of trillions of dollars from the working class to the rich and affluent in just three years.

The bottom three quarters of the population, some 240 million people, now own less than 10 percent of the wealth. That is, if the United States were a 10-storey apartment building with 100 people, the richest person would be living on the top four floors, the nine next wealthiest people on the next four floors, fifteen on the second floor, and 75 people cramped at the bottom level.

Wealth share by wealth decile, Credit: People’s Policy Project

The Federal Reserve data demonstrates, in empirical terms, profound changes in social relations that affect hundreds of millions of people, touching all aspects of political, cultural and intellectual life. The US is an oligarchy in which the government, trade unions, media, universities, and major political parties are instruments used by the ruling class to manipulate the population, mask its own wealth, and crush social opposition from below.

The figures expose the material basis for the emergence of a campaign in the ruling class to block access to the World Socialist Web Site and other left-wing sites in the guise of combatting “Russian aggression.”

In an oligarchy, social inequality is incompatible with democratic rights. Incapable of and unwilling to address the social needs of the masses of people, the government turns to censorship, surveillance, blacklisting, and violence as its preferred methods for defending unprecedented levels of wealth monopolized by the ruling class.

The data shows that the main dividing line is between the top 10 percent and the bottom 90 percent that comprise the working class. The Federal Reserve figures expose as lies the claims by politicians and media pundits that the bulk of the US population belongs to the “middle class.”

Below the aristocracy and the affluent—concentrated in certain neighborhoods of major centers like New York, the San Francisco Bay Area, Los Angeles, Chicago, Houston, and other cities—the United States is a country dominated by tremendous economic hardship. The data shows that while different strata of the population face economic insecurity at different levels of urgency, decades of social counterrevolutionary policies by both parties are bringing them closer together, marking all with the same scars of class exploitation.

The poorest ten percent of the population, some 32 million people, possess negative wealth. They include the homeless and the hopelessly in debt. For this section of the population, roughly equal to the populations of Texas and New York combined, life expectancy, disease rates, and living standards resemble third world conditions.

The next poorest ten percent have no wealth, between $0 and $5,000 per family, less than the value of a 10-year-old used car. The combined wealth possessed by this layer is not significant as a proportion of overall wealth.

Roughly the lower-middle third of the population, from the 20th to 50th percentile, control just 1.6 percent of total wealth. A family of four with two parents working full-time at the minimum wage with one average-priced vehicle and no other assets would fall in the middle of this broad category of workers.

The 64 million people in the 50 to 70 percent range control just 5.1 percent of the wealth. A family with a below average-priced home worth $150,000, plus a vehicle and $0 in savings would be above the 60th percentile in wealth. A family with two working adults making between $40,000 and $50,000 each would find itself in the 70 to 80 percentile, perhaps possessing two cars, a home valued just above the national average of $175,000, a life insurance policy and $10,000 in savings.

The 80 to 90th percentile owns 11.2 percent of the wealth. Two skilled workers with incomes of $60,000 to $80,000 each, one pension, a $300,000 home, and two vehicles would find themselves in this decile. This section is slightly more comfortable, but by no means financially secure.

The chasm separating the top 10 percent from the working class has widened in recent years. From 2004 to 2016, the working class saw its wealth decline precipitously across all strata. The median family in the poorest fifth lost 29.5 percent of its wealth over this period, followed by 24.7 percent for the median family in the 20th-39th percentile, 10.8 percent in the 40th-59th percentile, 17.3 percent in the 60th-79th percentile, and 1.3 percent in the 80th-89th percentile. This wealth went to the top 10 percent, where median family wealth rose by 38.7 percent over the same period.

As a result of this massive transfer of wealth, median family wealth in the top 10 percent is nearly triple that of the 80 to 90 percent, 20 times greater than a family in the 50th percentile, and 254 times more than the median family net worth in the poorest 20 percent.

The political establishment that has overseen this transfer systematically ignores and aggravates the urgent social problems confronting the vast majority of the population.

Footage of Trump flipping paper towel rolls to victims of the storm in Puerto Rico epitomizes the callous and insulting response of the oligarchy to the problems of the working class. But sanctimonious claims by Democrats that Trump’s actions were “insensitive” ignore the fact that the entire ruling class is responsible for the social catastrophe. After all, it was Barack Obama who travelled to Flint, Michigan and told a crowd of people to “drink the water.” Nobody in the Democratic or Republican parties has made any real effort to address the opioid crisis, homelessness, declining life expectancy, storm protection and disaster infrastructure, skyrocketing student debt and the health care crisis.

The three branches of government, largely comprised of millionaires and billionaires, focus exclusively on the interests and social demands of the top 1, and, more broadly, the top 10 percent of society. A key concern of the affluent 10 percent is blocking the growth of social opposition and protecting their own wealth and privileges. In recent years, the American ruling class has become more aware of the growth of social opposition within the population to war, inequality and poverty.

Fearful that the technological advances of the Internet and social media platforms can increase access to alternative political viewpoints, the oligarchy has initiated a campaign to censor left-wing websites and crack down on social media platforms in the name of blocking “Russian interference” in the US political system. Without a shred of credible evidence to back their claims, newspaper editors, TV talking heads, Senate and House committee members, corporate executives, trade union leaders and academics are engaged in a mad rush to censor the Internet and protect the population from “fake news.”

The anti-fake news censorship and blacklisting initiative is an escalation of a years-long campaign by the ruling class to create the framework for police state methods of rule. At the same time, the growth of social inequality revealed in the Federal Reserve figures points to the inexorable intensification of social and class conflict in the United States, the objective foundation for socialist revolution.