Harvest of Greed – the Merger of Bayer and Monsanto

By Dr. Mercola

Source: Waking Times

The featured documentary, “Harvest of Greed,” investigates a number of the many issues brought about by the merger of Monsanto and Bayer AG. The merger was initially announced in May 2016, when Monsanto accepted Bayer’s $66 billion takeover offer — the largest all-cash buyout on record.1,2,3

The U.S. Department of Justice (DOJ) approved the merger in April this year,following the European Union’s (EU) approval in March. As a condition of the DOJ’s approval, Bayer will sell some of its assets to BASF — its German competitor — before the finalization of the merger.

This includes its soybean, cottonseed and glufosinate weed killer businesses, which overlap with Monsanto’s and were antitrust sticking points. Combined, Bayer and Monsanto used to control nearly 60 percent of the American cottonseed market. Monsanto also owns the rights to 80 percent of corn and 90 percent of soybeans grown in the U.S.5 The EU also demanded Bayer eliminate about $7.4 billion-worth of its various firms “to ensure fair competition.”6

Mega-Entity Now Controls Large Portion of Global Seed Supply

This new entity is now the largest seed and pesticide company in the world, controlling more than 25 percent of the global seed and pesticide supply. In all, just three companies now dominate the global seed and pesticide market.7 (In addition to the Bayer-Monsanto merger, the DOJ has also given the Dow-DuPont merger the green light, and the Federal Trade Commission recently approved ChemChina’s acquisition of Syngenta.)

The Bayer-Monsanto merger generated deep concerns right from the start, and anti-competition regulators were urged to investigate the takeover. Bernie Sanders went on record saying the takeover poses “a threat to all Americans” and needed to be blocked.8 He also urged the DOJ to “reopen its investigation of Monsanto’s monopoly over the seed and chemical market.” Farmers have also expressed concern over what the merger might do to prices, as less competition inevitably tends to lead to price hikes.

As just one example, the price of a bag of seed corn has risen from $80 to $300 over the past decade alone — a price hike attributed to the consolidation of seed companies and reduced competition. The merger of Bayer and Monsanto is predicted to make matters worse. Farmers also worry that consolidation will result in lower quality products by reducing incentive for innovation. Organic farmers have their concerns as well. As noted by Food and Power:9

“For Kristina Hubbard, director of advocacy and communications for the Organic Seed Alliance, the merger presents a particular threat to organic farmers. She notes that the National Organic Program’s regulations on organic seeds generally dictate that growers must use organic seeds to grow their crops. But there is an exception granted for non-organic seed when ‘an equivalent organically produced variety is not commercially available.’

Acceptable non-organic seeds are generally owned by the giant seed companies. ‘That exemption is important because currently the supply [of organic seeds] isn’t sufficient to meet the diverse and regional needs of all organic farmers,’ she says. With continued consolidation in the seed industry, she says farmers that rely on those non-organic seed options may find themselves faced with even fewer options as the merged companies cut down on research and development.”

Bayer-Monsanto Merger Unlikely to Benefit Anyone but Its Shareholders

Bayer AG’s CEO, Werner Baumann, has stated that “it is not our plan or our ambition or our intent to prevent farmers from having choice.”10 But the history of Monsanto and Bayer both suggest it would be naïve to believe him. As noted by Mark Connelly, an agriculture analyst at the investment group CLSA Americas, “These companies want to make more money, they want to raise prices. No company in this industry needs these deals in order to innovate.”11

Indeed, there can be little doubt that the Bayer-Monsanto merger will give the subsequent entity even more power to bully farmers into paying more and pressuring and manipulating governments into accepting the unacceptable risks posed by genetically engineered (GE) crops and mounting use of ever more toxic pesticides.

One example of Monsanto’s strong-arm tactics included in the film is that of India, where more than 300,000 farmers have committed suicide due to farm-related debt. When the government attempted to regulate the price of seed — the main cause leading to these debts — Monsanto sued the Indian government.

Between 1997 and 2014, Monsanto also sued 147 farmers for “improperly reusing patented seeds.”12 They never lost a single case, even in cases where organic fields were contaminated or cross-pollinated with unwanted GE seeds.

Billions Against Bayer

In response to the announcement of the merger in 2016, the Organic Consumers Association (OCA) launched a boycott against Bayer. The “Billions Against Bayer” campaign is essentially a continuation of the successful “Millions Against Monsanto” campaign. Following the DOJ’s April approval of the merger, OCA renewed its call for consumers around the world to join the boycott. You can follow the campaign and get the latest news updates on Facebook.13 As noted in a September 2016 press release:14

“Two of the world’s most foul corporate criminals will be one. Monsanto will pack up its headquarters and head overseas. The much-maligned Monsanto name will be retired. But a corporate criminal by any other name — or size — is still a corporate criminal.

This merger only heightens the urgency, and strengthens our resolve, to hunt down the corporations that are poisoning everything in sight. We will follow them to the ends of the earth, if need be. We will expose their crimes. We will end the toxic tyranny. We will become the Billions Against Bayer. And we will need your help …

Even many Bayer employees are leery of the merger. While both companies have checkered pasts, Bayer has managed to escape the brunt of the kind of criticism, if not hatred, leveled at Monsanto over the years.

According to the featured documentary, Bayer claims the merger has widespread support among its staff, yet when Bayer employees were approached under the promise of anonymity, the general consensus was one of dismay at inheriting Monsanto’s tarnished reputation. Such fears are likely to come true sooner rather than later. Activists in Argentina, for example, promise Monsanto’s ill reputation cannot be washed clean but will now transfer over to Bayer.

Glyphosate — A Toxic Legacy

Both Bayer and Monsanto insist that glyphosate, the active ingredient in Monsanto’s weed killer Roundup and other herbicide formulations, is “a very safe product when used properly.” In the video, Bayer CEO Werner Baumann stresses that more than 3,000 studies support the chemical’s safety. Yet numerous studies have reached the converse conclusion, showing it poses toxic risks to soil, animals and humans.

“The things you hear in the public debate are ultimately based on misinformation about the risks of this product,” Baumann says. “So, we think glyphosate, even if it does belong to our company, is a good product, and its license should be renewed.”

At the end of 2017, the EU did indeed renew its approval of glyphosate for the next five years,15 but the process was not without its critics, such as Martin Häusling, member of the Green Party and the European Parliament, who noted that many of the studies exonerating glyphosate were funded by Monsanto itself, while independent research keeps finding problems.

Indeed, scientists have discovered it not only may be carcinogenic,16 but may also affect your body’s ability to produce fully functioning proteins, inhibit the shikimate pathway (found in gut bacteria) and interfere with the function of cytochrome P450 enzymes (required for activation of vitamin D and the creation of nitric oxide and cholesterol sulfate).

Glyphosate also chelates important minerals, disrupts sulfate synthesis and transport, interferes with the synthesis of aromatic amino acids and methionine, resulting in folate and neurotransmitter shortages, disrupts your microbiome by acting as an antibiotic, impairs methylation pathways, and inhibits pituitary release of thyroid stimulating hormone, which can lead to hypothyroidism.

Recent Government Tests Show Roundup Is More Toxic Than Glyphosate in Isolation

Most recently, toxicology testing17 by the U.S. National Toxicology Program (NTP) concluded the Roundup formula is actually far more toxic than glyphosate alone.18 The NTP testing was done by request from the U.S. Environmental Protection Agency (EPA) following the International Agency for Research on Cancer (IARC) reclassification of glyphosate as a Class 2A probable carcinogen three years ago.19

At the time, the IARC noted concerns about glyphosate formulations possibly having increased toxicity due to synergistic interactions. As it turns out, that’s exactly what the NTP testing found. According to the NTP’s summary of the results, glyphosate formulations “significantly altered” the viability of human cells by disrupting the functionality of cell membranes.

Mike DeVito, acting chief of the NTP Laboratory commented on the results saying, “We see the formulations are much more toxic. The formulations were killing the cells. The glyphosate really didn’t do it.”

Internal documents from Monsanto, obtained through previous Freedom of Information Act (FOIA) requests, reveal Monsanto’s own employees have not been convinced the product is harmless either. For example, in a 2002 email, Monsanto executive William Heydens said, “Glyphosate is OK but the formulated product … does the damage.”20

Monsanto Charged With Crimes Against Humanity

October 16, 2016 (on World Food Day), Monsanto was put on trial for “crimes against nature and humanity” at a tribunal in The Hague, Netherlands. The steering committee21 included Vandana Shiva, Corinne Lepage (former environment minister of France), Giles-Eric Séralini (toxicologist researching toxicities of GMOs and glyphosate), and Olivier De Schutter (former U.N. Special Rapporteur on the Right to Food), among others. The legal opinion on the evidence presented at the tribunal was delivered April 18, 2017. As reported by Corporate Europe Observatory:22 “The tribunal concluded that:

  • Monsanto has violated human rights to food, health, a healthy environment and the freedom indispensable for independent scientific research
  • ‘Ecocide’ should be recognized as a crime in international law
  • Human rights and environmental laws are undermined by corporate-friendly trade and investment regulation”

When asked if Bayer will continue Monsanto’s underhanded business practices, Baumann said the new entity will be managed “according to our standards,” adding that “Bayer stands for transparency, reliability and a different style of debate.”

Monsanto — A Destroyer of the Natural World

In addition to GE seeds and its flagship product, Roundup, Monsanto has also been a leading producer of Agent Orange, PCBs, DDT, recombinant bovine growth hormone and aspartame — the history of which is summarized in “The Complete History of Monsanto, ‘The World’s Most Evil Corporation,’”23 originally published by Waking Times in 2014.24

Monsanto also made its mark on history by participating in the Manhattan Project to build the first atomic bomb, thereby becoming a “war horse” ally to the United States government — an alliance that still holds today. As noted in “The Complete History,” article:

“To add insult to world injury, Monsanto and their partners in crime Archer Daniels Midland, Sodexo and Tyson Foods write and sponsor The Food Safety Modernization Act of 2009: HR 875.25 This ‘act’ gives the corporate factory farms a virtual monopoly to police and control all foods grown anywhere, including one’s own backyard, and provides harsh penalties and jail sentences for those who do not use chemicals and fertilizers. President Obama … gave his approval.

With this Act, Monsanto claims that only GM [genetically modified] foods are safe and organic or homegrown foods potentially spread disease, therefore must be regulated out of existence for the safety of the world … As further revelations have broken open regarding this evil giant’s true intentions, Monsanto crafted the ridiculous HR 933 Continuing Resolution,26aka Monsanto Protection Act, which Obama robo-signed into law as well.

This law states that no matter how harmful Monsanto’s GMO crops are and no matter how much devastation they wreak upon the country, U.S. federal courts cannot stop them from continuing to plant them anywhere they choose. Yes, Obama signed a provision that makes Monsanto above any laws and makes them more powerful than the government itself.”

Bayer Also Has a Long, Dark, Destructive History of Genocide

Despite having a far “cleaner” public reputation than Monsanto, Bayer is really just more of the same. Founded in Germany in 1863 by Friedrich Bayer and Johann Wescott, it too has a long, sordid history of creating poisons and mass destruction.27 During World War II, Bayer (then I.G. Farben) produced Zyklon B gas, used in the Nazi gas chambers to eradicate 11 million people whose only crime was to be born a Jew.

According to Alliance for Human Research Protection, the company was also “intimately involved with the human experimental atrocities committed by Mengele at Auschwitz.”28 In one case, Bayer purchased 150 healthy female prisoners from the camp commander of Auschwitz for use as test subjects for a new sleep drug. All the test subjects died, and another order for prisoners was placed.

While some of its board members ended up being arrested and tried for their crimes against humanity, others escaped and helped create the Federal Reserve.29 If you think the passing of time might have made this corporate entity kinder, safer and gentler, think again.

In 2003, it was revealed Bayer sold blood-clotting medicine tainted with the HIV virus to Asian, Latin American and Europe in the mid-1980s.30 The drug, Factor VIII concentrate, was worth millions of dollars, and the company continued to sell the tainted drug for a year after the contamination was discovered. In Hong Kong and Taiwan alone, more than 100 hemophiliacs contracted HIV and died after using the medicine.

Bayer’s drug Trasylol — used to control bleeding during surgery — was also eventually found to be responsible for at least 1,000 deaths each month for the 14 years it was on the market.31 In 2006, documents proved Bayer hid evidence showing unfavorable results from the drug in order to continue selling it.  Lawsuits have also been filed against Bayer for the untimely death of 190 young women taking their birth control pill Yaz, which raises your risk of blood clots by 300 percent.

Bayer Unlikely to Shift Public Perception of GMOs and Toxic Agriculture

Between 2006 and 2007, Bayer was also responsible for contaminating U.S. rice imports with three unapproved varieties of GE rice under development by Bayer CropScience. Bayer also makes neonicotinoid pesticides, suspected of being responsible for mass die-offs of bees around the world, thereby threatening the global food supply, and made the plastic chemical bisphenol-A, now known to have a dangerous impact on the human endocrine system.

In short, Bayer’s history is just as dark and unethical as Monsanto’s, if not more, and some have rightfully referred to the merger of these two destructive behemoths as a “marriage made in hell.”32 While change is possible, it seems improbable that this new Bayer-Monsanto mega-entity will radically change, and based on their combined histories, the world better get ready for a monumental fight.

Biotech Companies Are Gaining Power by Taking Over the Government

Monsanto and their industry allies will not willingly surrender their stranglehold on the food supply. They must be resisted and rolled back at every turn. There is no doubt in my mind that GMOs and the chemical-intensive agricultural model of which they are part and parcel, pose a serious threat to the environment and our health. Yet, government agencies not only turn a blind eye to the damage they are inflicting on the planet, but actively work to further the interests of the biotech giants.

This is not surprising. It is well-known that there is a revolving door between regulatory agencies and private corporations. This has allowed companies such as Monsanto to manipulate science, defang regulations and even control the free press, all from their commanding position within the halls of government.

Consider for a moment that on paper, the U.S. may have the strictest safety regulations in the world governing new food additives, but has repeatedly allowed GMOs and their accompanying pesticides such as Roundup to circumvent these laws.

In fact, the only legal basis for allowing GE foods to be marketed in the U.S. is the FDA’s tenuous claim that these foods are inherently safe, a claim which is demonstrably false. Documents released as a result of a lawsuit against the FDA reveal that the agency’s own scientists warned their superiors about the detrimental risks of GE foods. But their warnings fell on deaf ears.

Don’t Be Duped by Industry Shills!

In a further effort to deceive the public, Monsanto and its cohorts spoon-feed scientists, academics and journalists a diet of questionable studies that depict them in a positive light. By hiring “third-party experts,” biotech companies are able to take information of dubious validity, and present it as independent and authoritative.

Industry front groups also abound. The Genetic Literacy Project and the American Council for Science and Health are both Monsanto-funded. Even WebMD, a website that is often presented as a trustworthy source of “independent and objective” health information, is heavily reliant on advertising dollars. It is no coincidence that they promote corporate-backed health strategies and products.

There’s No Better Time to Act Than NOW — Here’s What You Can Do

The biotech giants have deep pocketbooks and political influence, and are fighting to maintain their position of dominance. It is only because of educated consumers and groups like the Organic Consumers Association (OCA) that their failed GMO experiment is on the ropes. We thank all of the donors who helped OCA achieve their fundraising goal. I made a commitment to triple match all donations to OCA during awareness week. It is with great pleasure to present a check to this fantastic organization for $250,000.

At the end of the day, we must shatter Monsanto’s grip on the agricultural sector. There is no way to recall GMOs once they have been released into the environment. The stakes could not be higher. Will you continue supporting the corrupt, toxic and unsustainable food system that Monsanto and its industry allies are working so hard to protect?

For more and more people, the answer is no. Consumers are rejecting genetically engineered and pesticide laden foods. Another positive trend is that there has been strong growth in the global organic and grass fed sectors. This just proves one thing: We can make a difference if we steadily work toward the same goal.

One of the best things you can do is to buy your foods from a local farmer who runs a small business and uses diverse methods that promote regenerative agriculture. You can also join a community-supported agriculture (CSA) program, where you can buy a “share” of the vegetables produced by the farm, so that you get a regular supply of fresh food. I believe that joining a CSA is a powerful investment not only in your own health, but in that of your local community and economy as well.

In addition, you should also adopt preventive strategies that can help reduce the toxic chemical pollution that assaults your body. I recommend visiting these trustworthy sites for non-GMO food resources in your country as well:

Organic Food Directory (Australia) Eat Wild (Canada)
Organic Explorer (New Zealand) Eat Well Guide (United States and Canada)
Farm Match (United States) Local Harvest (United States)
Weston A. Price Foundation (United States) The Cornucopia Institute

Monsanto and its allies want you to think that they control everything, but they are on the wrong side of history. It’s you, the informed and empowered, who hold the future in your hands. Let’s all work together to topple the biotech industry’s house of cards. Remember — it all starts with shopping smart and making the best food purchases for you and your family.

The Singular Pursuit of Comrade Bezos

By Malcolm Harris

Source: Medium

It was explicitly and deliberately a ratchet, designed to effect a one-way passage from scarcity to plenty by way of stepping up output each year, every year, year after year. Nothing else mattered: not profit, not the rate of industrial accidents, not the effect of the factories on the land or the air. The planned economy measured its success in terms of the amount of physical things it produced.

— Francis Spufford, Red Plenty

But isn’t a business’s goal to turn a profit? Not at Amazon, at least in the traditional sense. Jeff Bezos knows that operating cash flow gives the company the money it needs to invest in all the things that keep it ahead of its competitors, and recover from flops like the Fire Phone. Up and to the right.

— Recode, “Amazon’s Epic 20-Year Run as a Public Company, Explained in Five Charts


From a financial point of view, Amazon doesn’t behave much like a successful 21st-century company. Amazon has not bought back its own stock since 2012. Amazon has never offered its shareholders a dividend. Unlike its peers Google, Apple, and Facebook, Amazon does not hoard cash. It has only recently started to record small, predictable profits. Instead, whenever it has resources, Amazon invests in capacity, which results in growth at a ridiculous clip. When the company found itself with $13.8 billion lying around, it bought a grocery chain for $13.7 billion. As the Recode story referenced above summarizes in one of the graphs: “It took Amazon 18 years as a public company to catch Walmart in market cap, but only two more years to double it.” More than a profit-seeking corporation, Amazon is behaving like a planned economy.

If there is one story on Americans who grew up after the fall of the Berlin Wall know about planned economies, I’d wager it’s the one about Boris Yeltsin in a Texas supermarket.

In 1989, recently elected to the Supreme Soviet, Yeltsin came to America, in part to see Johnson Space Center in Houston. On an unscheduled jaunt, the Soviet delegation visited a local supermarket. Photos from the Houston Chronicle capture the day: Yeltsin, overcome by a display of Jell-O Pudding Pops; Yeltsin inspecting the onions; Yeltsin staring down a full display of shiny produce like a line of enemy soldiers. Planning could never master the countless variables that capitalism calculated using the tireless machine of self-interest. According to the story, the overflowing shelves filled Yeltsin with despair for the Soviet system, turned him into an economic reformer, and spelled the end for state socialism as a global force. We’re taught this lesson in public schools, along with Animal Farm: Planned economies do not work.

It’s almost 30 years later, but if Comrade Yeltsin had visited today’s most-advanced American grocery stores, he might not have felt so bad. Journalist Hayley Peterson summarized her findings in the title of her investigative piece, “‘Seeing Someone Cry at Work Is Becoming Normal’: Employees Say Whole Foods Is Using ‘Scorecards’ to Punish Them.” The scorecard in question measures compliance with the (Amazon subsidiary) Whole Foods OTS, or “on-the-shelf” inventory management. OTS is exhaustive, replacing a previously decentralized system with inch-by-inch centralized standards. Those standards include delivering food from trucks straight to the shelves, skipping the expense of stockrooms. This has resulted in produce displays that couldn’t bring down North Korea. Has Bezos stumbled into the problems with planning?

Although OTS was in play before Amazon purchased Whole Foods last August, stories about enforcement to tears fit with the Bezos ethos and reputation. Amazon is famous for pursuing growth and large-scale efficiencies, even when workers find the experiments torturous and when they don’t make a lot of sense to customers, either. If you receive a tiny item in a giant Amazon box, don’t worry. Your order is just one small piece in an efficiency jigsaw that’s too big and fast for any individual human to comprehend. If we view Amazon as a planned economy rather than just another market player, it all starts to make more sense: We’ll thank Jeff later, when the plan works. And indeed, with our dollars, we have.

In fact, to think of Amazon as a “market player” is a mischaracterization. The world’s biggest store doesn’t use suggested retail pricing; it sets its own. Book authors (to use a personal example) receive a distinctly lower royalty for Amazon sales because the site has the power to demand lower prices from publishers, who in turn pass on the tighter margins to writers. But for consumers, it works! Not only are books significantly cheaper on Amazon, the site also features a giant stock that can be shipped to you within two days, for free with Amazon Prime citizensh…er, membership. All 10 or so bookstores I frequented as a high school and college student have closed, yet our access to books has improved — at least as far as we seem to be able to measure. It’s hard to expect consumers to feel bad enough about that to change our behavior.


Although they attempt to grow in a single direction, planned economies always destroy as well as build. In the 1930s, the Soviet Union compelled the collectivization of kulaks, or prosperous peasants. Small farms were incorporated into a larger collective agricultural system. Depending on who you ask, dekulakization was literal genocide, comparable to the Holocaust, and/or it catapulted what had been a continent-sized expanse of peasants into a modern superpower. Amazon’s decimation of small businesses (bookstores in particular) is a similar sort of collectivization, purging small proprietors or driving them onto Amazon platforms. The process is decentralized and executed by the market rather than the state, but don’t get confused: Whether or not Bezos is banging on his desk, demanding the extermination of independent booksellers — though he probably is — these are top-down decisions to eliminate particular ways of life.

Now, with the purchase of Whole Foods, Bezos and Co. seem likely to apply the same pattern to food. Responding to reports that Amazon will begin offering free two-hour Whole Foods delivery for Prime customers, BuzzFeed’s Tom Gara tweeted, “Stuff like this suggests Amazon is going to remove every cent of profit from the grocery industry.” Free two-hour grocery delivery is ludicrously convenient, perhaps the most convenient thing Amazon has come up with yet. And why should we consumers pay for huge dividends to Kroger shareholders? Fuck ’em; if Bezos has the discipline to stick to the growth plan instead of stuffing shareholder pockets every quarter, then let him eat their lunch. Despite a business model based on eliminating competition, Amazon has avoided attention from antitrust authorities because prices are down. If consumers are better off, who cares if it’s a monopoly? American antitrust law doesn’t exist to protect kulaks, whether they’re selling books or groceries.

Amazon has succeeded in large part because of the company’s uncommon drive to invest in growth. And today, not only are other companies slow to spend, so are governments. Austerity politics and decades of privatization put Amazon in a place to take over state functions. If localities can’t or won’t invest in jobs, then Bezos can get them to forgo tax dollars (and dignity) to host HQ2. There’s no reason governments couldn’t offer on-demand cloud computing services as a public utility, but instead the feds pay Amazon Web Services to host their sites. And if the government outsources health care for its population to insurers who insist on making profits, well, stay tuned. There’s no near-term natural end to Amazon’s growth, and by next year the company’s annual revenue should surpass the GDP of Vietnam. I don’t see any reason why Amazon won’t start building its own cities in the near future.

America never had to find out whether capitalism could compete with the Soviets plus 21st-century technology. Regardless, the idea that market competition can better set prices than algorithms and planning is now passé. Our economists used to scoff at the Soviets’ market-distorting subsidies; now Uber subsidizes every ride. Compared to the capitalists who are making their money by stripping the copper wiring from the American economy, the Bezos plan is efficient. So, with the exception of small business owners and managers, why wouldn’t we want to turn an increasing amount of our life-world over to Amazon? I have little doubt the company could, from a consumer perspective, improve upon the current public-private mess that is Obamacare, for example. Between the patchwork quilt of public- and private-sector scammers that run America today and “up and to the right,” life in the Amazon with Lex Luthor doesn’t look so bad. At least he has a plan, unlike some people.

From the perspective of the average consumer, it’s hard to beat Amazon. The single-minded focus on efficiency and growth has worked, and delivery convenience is perhaps the one area of American life that has kept up with our past expectations for the future. However, we do not make the passage from cradle to grave as mere average consumers. Take a look at package delivery, for example: Amazon’s latest disruptive announcement is “Shipping with Amazon,” a challenge to the USPS, from which Amazon has been conniving preferential rates. As a government agency bound to serve everyone, the Postal Service has had to accept all sorts of inefficiencies, like free delivery for rural customers or subsidized media distribution to realize freedom of the press. Amazon, on the other hand, is a private company that doesn’t really have to do anything it doesn’t want to do. In aggregate, as average consumers, we should be cheering. Maybe we are. But as members of a national community, I hope we stop to ask if efficiency is all we want from our delivery infrastructure. Lowering costs as far as possible sounds good until you remember that one of those costs is labor. One of those costs is us.

Earlier this month, Amazon was awarded two patents for a wristband system that would track the movement of warehouse employees’ hands in real time. It’s easy to see how this is a gain in efficiency: If the company can optimize employee movements, everything can be done faster and cheaper. It’s also easy to see how, for those workers, this is a significant step down the path into a dystopian hellworld. Amazon is a notoriously brutal, draining place to work, even at the executive levels. The fear used to be that if Amazon could elbow out all its competitors with low prices, it would then jack them up, Martin Shkreli style. That’s not what happened. Instead, Amazon and other monopsonists have used their power to drive wages and the labor share of production down. If you follow the Bezos strategy all the way, it doesn’t end in fully automated luxury communism or even Wall-E. It ends in The Matrix, with workers swaddled in a pod of perfect convenience and perfect exploitation. Central planning in its capitalist form turns people into another cost to be reduced as low as possible.

Just because a plan is efficient doesn’t mean it’s good. Postal Service employees are unionized; they have higher wages, paths for advancement, job stability, negotiated grievance procedures, health benefits, vacation time, etc. Amazon delivery drivers are not and do not. That difference counts as efficiency when we measure by price, and that is, to my mind, a very good argument for not handing the world over to the king of efficiency. The question that remains is whether we have already been too far reduced, whether after being treated as consumers and costs, we might still have it in us to be more, because that’s what it will take to wrench society away from Bezos and from the people who have made him look like a reasonable alternative.

Are Facebook and Google the New Colonial Powers?

By Charles Hugh Smith

Source: Of Two Minds

To qualify as colonial powers, Facebook and Google must effectively limit the choices and power of users, and punish or coerce those who question or resist their power.

I was struck by a phrase from a recent essay on advertising and social media, You Are the Product: As Taplin points out, that remark ‘unwittingly revealed a previously unspoken truth: Facebook and Google are the new colonial powers.’

As you’ve no doubt noticed, the dominance of Facebook and Google in online advertising is now “in the news” for a variety of reasons: the possibility that agents of other governments influenced U.S. elections with media buys on Facebook; anti-trust concerns; the potential for these advert-tech giants to effectively silence legitimate online voices under the guise of limiting “fake news”, and of course, the ongoing issues of click fraud and the underperformance of digital ads.

The phrase that captures this broad narrative is: When an online service is free, you’re not the customer. You’re the product.

In other words, if you’re not paying for the service or content, then your information (harvested by Google, Facebook, et al.), your time online (i.e. your attention, a.k.a. eyeballs) and the content you create and post for free (videos of your cute cat, etc.) are the products being sold to advertisers at a premium.

The characterization of the two dominant digital-advert giants as new colonial powers is interesting on a number of fronts. To get a handle on a few of the issues, I recommend reading these two essays:

A Serf on Google’s Farm

Lost Context: How Did We End Up Here?

And watching this video on the archiving of digital information on individuals–including meta-data, that is, data about your behaviors, transactions, posts, etc. that have been scrubbed of your identity markers (name, account numbers, etc.)

Haunted by Data – Maciej Ceglowski (via GFB)

The key dynamics of colonialism for the residents are 1) a lack of choice and 2) a lack of power: the colonial power imposes a regime, either formally or informally, that limits the choices enjoyed by residents and limits their power to bypass or replace the colonial regime.

In the classic Plantation Economy of overt colonialism–a topic I’ve discussed numerous times here–residents are stripped of any options other than working on the plantation and buying their goods at the plantation store. This coercion need not be direct; the colonial regime can strip residents of choice and power by making it impossible to live without cash, for example, and then providing one source of paid work: the plantation.

Once cash is necessary to live, then credit is introduced–but only if you buy at the company store.

I’ve also written extensively about the Neo-Colonial Model in which corporations and banks bring the colonial model of exploitation to the home country, stripmining the domestic populace via dependence on credit.

Welcome to Neocolonialism, Exploited Peasants! (October 21, 2016)

Greece and the Endgame of the Neocolonial Model of Exploitation (February 19, 2015)

The E.U., Neofeudalism and the Neocolonial-Financialization Model (May 24, 2012)

This model is also used in the developing world, where it has replaced the old overt form of Colonialism with the new and improved credit-based version.

To qualify as colonial powers, Facebook and Google must effectively limit the choices and power of users, and punish or coerce those who question or resist their power. As the dominant corporations in search, social media and digital advertising, Facebook and Google limit the options of users simply by being essential due to their dominance.

As for punishing users–the potential to do so is what’s worrying observers. The cover for silencing or banning critics is opaque: non-compliance with guidelines. So who’s to say that users who criticized or questioned the policies of Facebook and Google aren’t silenced along with click-fraudsters, “fake news” purveyors, etc.? Who gets silenced is completely up to the companies, and there is no recourse to the corporation’s opaque judgment.

The Orwellian possibilities are real enough.

Here’s a look at the digital advert market:

And the dominance of Google/Facebook: