Keeping The Portal Open: Erik Davis on TechGnosis and the Blurring “Real” & “Virtual”

Posted on December 13, 2015 by Reid Mukai

By Michael Garfield

Erik Davis is the author of TechGnosis: Myth, Magic, & Mysticism in the Age of Information (recently reissued by North Atlantic Books with a new afterword). An investigation into how our transcendental urges play out in the realm of high technology, it is a rare treat – both an exemplary work of scholarship and also a delightful read – a florid, fun, and virtuosic play of language. Even more impressive is that in our metamorphic times, this book has aged considerably well. TechGnosis is in ways more relevant today than it was in the rosy dawn of 1998, before The Matrix and the iPhone, Facebook, and Edward Snowden. We’re living in the future. Read this book and learn the territory.

Over a glitchy Google Hangout (you can watch both parts on YouTube), Erik and I discussed our culture’s highest hopes and darkest dreams for our collective future, and how they’ve both become more complicated since the turn of the Millennium.

If you imagine browser windows as a kind of portal in between dimensions – if you wonder when the apes and whales will open social media accounts – if you believe that we can find a way to surf the turbulence of our connected century with grace and humor – then read on…

(Thanks to Terra Celeste and Ivan Marko for transcribing this! This is about one-third of the full conversation. You can also read the transcript in its raw entirety here.)

Erik: I apologize for our developing-world level of internet connectivity. Here in San Francisco! That’s right, folks, you heard it right: I live in the city of San Francisco, the absolute white hot center of the technological creative mutation, and yet my internet’s kind of crappy.

Michael: Well, you know, San Francisco was where Skynet was headquartered in the last Terminator film, so it may just be that your home is becoming ever-more inimical to human existence.

Erik: And the Federation, too! In a way those were the two models, right? On the one hand, you have the Federation from Star Trek, where it’s a liberal, UN, kind of globalist model – we’re no longer fighting nation states, we’re still human beings, we have desires, we get to drink tea and explore the universe. That sounds pretty cool from a humanist point of view, and yet on the other side we have Skynet, which is of course a whole other ball of wax. In a way, isn’t that it? It’s the struggle between the Federation and Skynet.

Michael: It’s funny, ‘cause most of what I wanted to talk to you about today was about how your book -– which is a brilliant piece of writing – has aged since 1998. The new volume includes a new afterword from the 2004 edition, as well as a new afterword from the 2015 edition. One of the things that you discuss is the way that the expectation that we had of boundary dissolution and transcendence at the turn of the millennium has become more complex. Now, it’s more of just a general shifting and metamorphosis of the construction of new boundaries. And so, like in the most recent Star Trek films and Terminator films, we now have good Terminators that believe they are people and are willing to donate their heart to the dying members of the human resistance. You know, the actual human heart that these Terminators possess, in order spoof human security systems. And then, in the latest Star Trek film, the threat comes from within the Federation, from a black box military program. Our culture seems to be getting more and more comfortable with these liminal zones and these ethical complexities. Less naïve with respect to that kind of simple dyadic distinction.

Erik: Techgnosis first came out in ’98. I talk a lot about gnosticism in the book and about these ancient Christian heresies about the spark in us that can escape from this prison that’s run by evil demons who are fabricating reality. That ancient model of mysticism and theology just fits like a hand and glove in our digital era. And then the Matrix films come along and I was like, “Oh my God, so beautiful.” It was just a perfect expression, and I wrote about that in the afterword for the 2004 edition. Nowadays a lot of the topics that I wrote about are even more available and perceivable through popular culture because popular culture has gotten weirder, more full of occultism, more intense, even as, in some ways, it’s become more ordinary. A lot of these sort of topics were very fringe in the ’80s or even the ’90s, in the sense that you had to kinda dig for occultism, for Satanism, for people who believed that they were channeling deities. All this stuff was part of a subculture, an outsider culture. Whether we believed it or not doesn’t matter. In a way, it’s not that there are necessarily more people who believe in these things. It’s just that they’re more available, because of the way that popular culture introduces these ideas. We become fans of shows. Fantasy and science fiction have become the norm.

Michael: I’m sure you remember when James Cameron’s Avatar came out, and the Avatar world immediately took off within the LARPing community. And so you started to see this foreshadowing of a new dysphrenia, a psychological disorder of the possible fragmentation of worldspaces that we seem kind of doomed to experience with the advent of the true landing of virtual reality. These people were so just morose and desperate because they became so immersed in the Pandora world that they couldn’t readjust to their life as human beings. It’s sort of akin to my generation’s wave of acid burnouts, maybe. As we invest more and more of ourselves into this increasingly popular and available and sexy because it’s not just animated by our religious impulses, but it’s actively being advertised, and commercialized and sold to us. We’re really being encouraged to throw ourselves into these alternative worldspaces. And then there isn’t a landing pad for when we get back. So I feel like one of the lasting lessons of your book, one of the reasons that I feel its resonance remains, is because it allows a person to integrate those experiences. In a way, it functions as a manual for understanding our drives and the larger emotional matrix in which we play with new freedoms to explore occult realities.

Erik: That’s very well said, actually, because in conventional society, even very recently, these things have largely been shuttered out. My generation grew up in the shadow of the hippies, and those things were around, but they were very much part of the counterculture. They were either mocked or ignored in the New York Times reality, which is still kind of a good symbol for consensus reality. I’m not even sure if we have a consensus reality anymore, or if it’s not some crazy topological knot, but in the old days, it had a little bit more stability to it, and you would never see these things acknowledged. Or if they were, they were pathologized – it was crazy, it was absurd, it was narcissistic and navel-gazing. This was true for a whole range of things – meditation, esotericism, UFOs, psychedelics, the whole range of extraordinary experience that people wanted to seek and experience.

As someone who basically keeps my feet on the ground, I’m largely skeptical in temperament. I’m very anthropological in my approach, which means I like to go into environments and participate as I observe, that classic stance of participant-observation. And what’s come from that is a realization that you can plunge very deeply into very interesting, rich otherworlds that are full of magic and enchantment and bizarre synchronicities and wonderful downloads, but at the same time you can also trust the ability to return to the body, to the ordinary, to the conditions of human experience in an everyday way, and that those don’t have to be in conflict so much.

I think that these experiences are not only really valuable, but they’re absolutely necessary to understand what’s actually happening. Whether people acknowledge it or not, a lot of the time we are driven by desires to be in dreamworlds, to achieve unusual-states-of-consciousness, to find them inside ourselves and see the way that they’re driving us. There’s a strong kind of rationalist technologized way of thinking about experience that’s very pervasive now, that’s actually carried like a philosophical virus through the widespread notions of tweaking and controlling your experience, of making yourself more efficient or powerful. So for me it’s really important to keep portals open to the unknown, to the mystery, to the bizarre, because it’s precisely in those encounters that we see beyond the rationalistic frame, which often is, in my opinion, benighted. Instead, we can adopt a more open-ended, but not necessarily mystical, attitude to the whole range of otherworldly experiences.

Michael: There’s a through-line here in one of the last chapters of Coming into Being: Artifacts and Texts in the Evolution of Consciousness by William Irwin Thompson, someone whom I know that has inspired us both immensely. That books last chapter a chapter is about how the Ramayana tells how humans and animals allied to expel the demons from what we now take as take as mundane, everyday reality. Bill Thompson’s view was that the Electrical Imaginary descending back into our networked global civilization is opening a portal, and that the screen is literally a shamanic window through which these spirits are granted fresh access to our world. And then in your latest afterword you talk about how the irony of these ultra-hyper-realist-skeptic-atheist-revenge-of-the-enlightenment types is that you can’t actually create a complete model of the mundane world. You can’t perfectly map the enlightened cosmos without getting into all of the weird stuff, the out-of-body experiences, the UFO abductions. These things have to be explained in order to cast out all of the shadows, but the naïve attempt to cast them out is really just an invocation. It’s like the topological knot you mentioned earlier, where merely addressing them makes them a more vivid part of our reality.

Erik: Absolutely. I think that that’s part of the deeper logic behind the renaissance of psychedelics. In many ways, “psychedelics” as a topic is a key site in understanding how modern technological scientific people recover, rediscover, and repackage, if you will, these kinds of liminal states and otherworldly encounters, with their potential sources of meaning and spiritual experiences. I also think that one of the reasons we have seen such an incredible renaissance emerge so quickly is because it was an inevitable part of scientific logic. Science has to take the brain seriously, it has to take the experiences in the brain seriously. Psychedelics are clearly physical, material agents that produce somewhat regular phenomenological effects. We have to understand that if we’re going to understand the brain. Any reasonable scientist is going to say that. And, whoa, lo and behold, it actually seems to do some good. So the genie is out of the bottle, and the genie doesn’t mean that we’re going to return to some kind of mystical worldview. I don’t believe we are. I think we’re in a state of tremendous mixing, of a multidimensional view where we have to learn how to move between different kinds of frameworks, including occult and animist frameworks, including mystical or religious frameworks, but also including secular, critical, analytic frameworks – scientific in that classic sense as well. How to do that I don’t know. But I do know that it’s a multidimensional field and I think that that’s why we see this turn towards the very multidimensional psychedelics.

Michael: Yeah, definitely. That is, in the sense of the original articulation of TechGnosis. You’ve got that chapter, “The Path is a Network”. There is something about the way the network allows for this manifold, multifaceted appraisal of reality, that really breeds and encourages and nourishes multiperspectivism. And so, in a way, I think the inherently psychedelic nature of our age, and what’s become really just like much more imminently and vividly obvious and easy to spot about the mainstream culture in general, is that we don’t all agree. It’s a much deeper revelation of the same kind of cultural relativism that we started to experience through the global interchange and commerce a couple hundred years ago, but now it’s to the point where culture has splintered to such an extraordinary degree due to the fact that everyone at the dinner table is occupying their own iPhone reality portal, that the main yoga of at least the first half of the twentieth century seems to be the psychedelic yoga, of being able to take our ontological conclusions lightly, and to be able to juggle them and to adopt them when they’re appropriate but to treat them with the kind of middle-way balance of skepticism and sympathy that you have modeled for your readers.

Erik: Yeah, that’s a really important thing for me. Also, itIt also plays an important role in a lot of the stuff that we haven’t been talking about, which is the dark side of the tale. Probably my proudest thing about TechGnosis is that it first came out in 1998, so the book was written during the first internet bubble. This was the time when a truly millennialist set of ideas were held by many people working in technology, the new rules of the economy of abundance. That kind of utopian thinking.was partly legitimately believed. I knew a lot of these people, I was kinda part of that world, of people who were imagining the potential of virtual reality, of new kinds of political formations, people drawn together in new forms of community, etc. At the same time those ideas were also ruthlessly exploited by capitalist forces, which created essentially a kind of ponzi scheme of IPOs. And so, the sense that something new and different was actually happening was simultaneously exploited.

When I was writing TechGnosis, it would have been easy for someone to write a much more happy, fluffy vision of the connections between spirituality and technology. “Here we are, just around the corner, just about to break through!” But for me, that sense of transformation was always accompanied by a shadow. If you open the portal and you accept the existence of these half-fantastic beings, there are demons there as well. In our future visions now we feel the presence apocalyptic energies. There’s the sense of mass breakdown, of ecological collapse, or the rise of a fascist surveillance state. On some intimate level we know that every time we’re using a device we’re moving through a shadow realm where we don’t know what sorts of agents – entities, algorithms, human beings – are perceiving and making meaning out of our operations. That is an unnerving, uncanny situation, and it’s one that we have to live with.

We have to acknowledge that we do have these fears and terrors, and apocalyptic presumptions inside of us, inside our imaginations, inside our hearts, inside our stories, inside our cultural traditions. And so we have to be very careful about where and how we mix the apocalyptic templates that we carry in our imaginations with the actual real conditions that we find ourselves in. It’s very tricky, but I suspect it takes that same sort of balance of skepticism and sympathy into the shadow realm as well as the utopian, or at least poetic possibility. And in a lot of ways I feel that’s where we’re at. That’s part of why I do what I do, is to try to kind of map that ginger, open, but questioning space, because it seems like one of the places to try to navigate these very difficult issues.

Michael: So many people worship the idea of the return to nature, or Terence McKenna’s idea of an archaic revival, this sort of forward-escape atavism where we go all the way around and end up back where we started, transformed. But we’re also naïve to the lived reality of not being on the top of the food chain, and that’s absolutely part of this that comes back, it can’t be divorced from the rest of it. We long for the community of the tribal life that we left behind, for the openness, the permeability of the self that we experience. The last experiment of civilization was profoundly dissociative, isolated, and lonely, and as consequence, we have a totally pathological relationship to the natural world. But in restoring that, in the humility of science recognizing its ultimate ignorance, we move back into an age where we’re no longer able to kid ourselves quite so successfully about the dragons that we have swept under the map. They’re still there, and they’re in a way even more alive for us now.

In your interview with Vice, you said a god is just a fiction that everyone believes in. So in a way – and this is kind of Information Warfare 101 – even if the NSA did not have supercomputers inside that Utah data complex, the fact that they built it, and that it can be observed on Google Maps, holds this profound power over the human imagination, and so we’re all having to catch up really quickly to these magical concepts. Even if they’re not clothed in the language and trappings of magical traditions, we’re being reacquainted with the power of the symbol and the power of ritual, and the sway that an idea has over the population when it becomes harder and harder to verify things beyond the shadow of a doubt.

Erik: You could call it conspiracy thinking, although that gets defined in all sorts of ways, some of which I think are themselves forms of mind-gaming. Either way, we’re in a realm of mind-games, where perception is reality, and where the crafting of perception takes place on multiple levels through multiple agendas. Multiple agents are crafting reality in a more and more overt way, even as we’re technically learning to craft subjective experience more and more. Here we’re getting into the edge of Virtual Reality 2.0. I think that, again, familiarity with these occult or even animist liminal zones will help us navigate through the jungle that we’re in. I mean, I can totally understand why people want to drop out of this thing. Like, fully drop out – whether into criminal underworlds, into darknet trafficking, or whether they go off the grid, or try to monkey-wrench the show. Those desires makes a lot of sense to me. It’s not who I am, it’s not where I am, but I can resonate with that. So, as long as I’m still participating in this network world that we’re sharing, that we’re fabricating, that the machines are fabricating, that we’re sharing with the machines, we have to develop that kind of light step.

You also mentioned a sense of the larger ecological framework that we’re in. As we look at what’s happening with technology, as we try to understand what’s happening with communication and human civilization, it’s impossible to extricate it from this larger ecological condition of crisis and no-going-back. It really feels like what we’re being asked to do, ethically and imaginatively, is to extend our ability to sympathize, to engage with, and even just to leave a space open for that which is outside of us, outside of the human frame, outside of the human story. That Outside may be technology, in the sense of the algorithmic intelligences that are already beginning to swamp our world, as well as the complex institutions and networks that are distributing these things. But that Outside also supports a more ecological and even cosmic view. We’re on a planet, the planet’s changing rapidly, spinning in space. All of those larger views, I think, are what we’re called upon to connect with.

I think one of my greater fears or concerns – I mean, I have so many, but just talking specifically about technology, and how people use it – is that it’s very easy to stay within a kind of human narcissistic world through media, especially social media, and the internet. I see people putting their energy into virtual or technological information circuitry, getting absorbed into a mass-cybernetic web of media, with its transmission of human stories and human perceptions and human egos and identification and projection. The whole game is so absorbing, so seductive, so fascinating, so enervating, that it can drown out our ability to wrestle with the non-human – whether it’s technology, geology, animals, capital flows. We need to become better post-humans, not narcissistic post-humans seeking our pleasure buttons, figuring out the best way to design some kind of crazy experience. That’s great, it’s part of the whole picture, but we have to also really think about what does it mean to live in a profoundly interwoven cosmos that necessarily draws us out of our narrow human egoic frame.

Michael: I totally agree. So, in light of that, I’m really fascinated by what you might have to say on recent developments on the interspecies internet – have you heard much about this? There was a TED talk about it a year or two ago.

Erik: I think I know what you mean. Why don’t you set it up?

Michael: A couple of years ago, Vint Cerf, Peter Gabriel, and a couple other people – dolphin researchers, bonobo researchers, and technologists – came forward at a TED conference to launch the idea that we can get into the sensorium of other animals and understand the way they experience things well enough to create computer interfaces for them that perform something like “Babel Fish” or Google Translate, so that we can communicate – whether it’s through music, symbols, or something else – with some of these other animals that we know have high intelligence and a sense of self.

I was really excited about being a part of this in some way, just throwing my bid into this process, and then I started thinking about how it got more complex. Because, what’s really going on here is that we can scarcely recognize a world beyond ourselves without immediately attempting to colonize it with our technological bid for control. To reference George Dvorsky of io9, there’s something really beautiful in his fascination with animal uplift, and his vision of our ethical responsibility to involve non-human species in the fate of the planet – which is currently being decided by human parliamentary action. The dolphins should get a vote. The gorillas should get a vote. And the only way that they can get a vote is to involve them in the technological infrastructure that we’re creating that is allows us the hope and the opportunity for that Star Trek world government. At the same time, it enfolds them into our own personal and transpersonal nightmare that we just discussed, and ultimately they may not want to participate in our uniquely human breed of insanity.

Erik: Yeah, that’s very well put. You know, we keep stumbling onto this Faustian bargain. It increasingly seems to describe these kinds of situations. There are people who believe that we can design a good enough system where, even despite its flaws, we’re drawing in others to decisions about the best and most ethical thing to do. And at the same time you’re going to have people who are just, like, gagging in their throats. It’s like, after all of the violence we have exerted on the animal world, to do this is the final, most nihilistic violence – to draw them into this madness! And you could have the same discussion about the desire to colonize planets. How could we not get excited about the idea of human beings on Mars or even robots landing on asteroids? It’s just totally fascinating and wonderful, and yet it’s pretty easy to see what that would look like as an industry, and the kinds of problems that would arise in the way that seems stitched into the nature of human beings. Sometime you can almost be Christian about it. It’s a kind of original sin, a way of, like, always fighting and competing and outmaneuvering and exploiting and trying to create elites. All these things that civilization has been doing since the get-go, since we stepped outside of the Paleolithic life and made a pact with writing and social organization, with pyramidical structures. It’s an old, old, old pact, and it’s deeply religious. Our religion is fundamentally bound up with the mythology of the state.

And so, where I stumble now is…where is the state? Is it everywhere? Is it nowhere? Are we at a point where that whole relationship is shifting? Is it worth extending hope into these things, or is it reasonable to say, “Look, we just keep doing the same horrible thing over and over again, so let’s just tear it down.”

Getting back to the specific question about animals, though. I really buy that radical democratic notion in a lot of ways. Turning to the Outside, whether it’s animals or elements of technology or geological forces, is part of what democracy means. Part of the constitution in Ecuador recognizes the rights of nature. Not just nature, but “Pachamama” – and, as people who are interested in medicine work and indigenous worldviews know, Pachamama is a goddess. It’s a way of understanding and relating to the fecund, beneficent giving quality of the earth, in a spiritual light, or a personhood light, or an animist light, whatever you want to call it. And that’s part of the constitution, part of a legal document. The thinking behind that document is, “Look, it’s just extending the idea of rights, which is a modern construct. The notion of inalienable rights emerges at a certain point in Western history, it gets installed into governmental and legal forms. Initially it’s just for white men with property, then it’s just for men, then women get it, then people of color, whatever – you have this spreading of the notion of rights, so that now we are called upon to spread it into the environment as well.” Very tricky, very complicated, very confusing. What does it mean, to give nature a voice? Is “nature”, or Pachamama, even the right word? And at the same time, that seems like a very vital and significant mutation in the operating system of the state. You’ve got to factor in these others, even though exactly how that happens is so difficult to understand. So again, here we go! Plunging into the Faustian bargain!

Michael: It’s very much related to a book that I feel stands in a fun balance with yours. It came out this last year by Christian Schwägerl. It’s called The Anthropocene, and if you haven’t read it I highly recommend the read (editor’s note: Shwägerl has a number of excerpts published on Reality Sandwich). It ignores the mystical dimensions of things. Schwägerl lives in Berlin, and he’s very much operating from a secular, European Union, modern global ecological sensibility. But the whole idea of his book is that the last remaining wild places are, in a sense, artifacts, because they only exist due to the determination of the human hand to preserve them. That there is no real wilderness anymore on our planet, at least in the natural world. Everything is indoors, and we have to find a way to first recognize that the so-called “Human Age” is actually tilting us into this much more profound, complex, and difficult relationship with the non-human world.

But we do have to find a way to express that world in our own language and our own systems – for example, by honoring what he calls “ecosystem services” in our economy, not factoring out that the water cycle, the carbon cycle, and all of these supporting systems that have an order of magnitude greater economic value than anything we’re trading on the stock market. They must be preserved at literally all costs. But he is ethically divided by the question, “Do we have to talk about the rainforest in terms of its monetary value in order to save it?”

Erik: That’s the crux. I’m glad you brought up this topic of wilderness, because I think it’s a good way to reflect on one of the problems we face. On the one hand, we have the wild – what the wild represents, what it means to be wild, what it means to stumble across the wild in your life, We are talking the unknown, the mystery, the chaos, a kind of Dionysian encounter, an intensity that takes you beyond reason, whether it’s experienced in a natural environment or in your head, or in the city. There’s something about wildness that’s profound to human beings. It has a lot to do with what people seek when they’re spiritual seekers, when they’re religious, when they are plumbing the depths. When people question the autonomy or imperial demands of reason, it’s often in the name of some kind of wild – whether it’s the sacred or the archaic or the nonhuman.

At the same time, you can sit down and go, “But this whole idea of wilderness, of natural wilderness, well, it’s a construct, it’s part of the European imagination, and that imagination is over. It’s not doing anyone any good anymore.” Some very serious environmentalists will argue that ideas of wilderness or even “nature” are actually in the way. The argument is that the religious and spiritual ideas about nature that were such an important part of twentieth century environmentalism actually get in the way of the process of introducing these non-human factors into the system in a way that would actually force the system to recognize and negotiate with them, rather than pretending in this abstract, insidious way that they don’t exist. And I don’t know what to do with that tension between these two “wildernesses”. All I know is that it’s incredibly vital in whatever way that we keep a portal open to the wild.

In that sense I’m very different than rationalist people who think we just need to introduce everything into the system – that it has to be drawn into the logic of capital, it has to be commodified, it has to be seen. That the way to deal with pollution is to create carbon debt and to introduce it into the financial system. But that solution is a house of cards. I have a slightly, perhaps darker view that whatever tumult lies ahead, whatever sorts of forms of chaos we confront, whether they’re through a highly developed technological society that manages to keep things going, or whether society is forced to reorganize in the face of a major hiccups and breakdowns, whatever the thing is, the more that we are actually able to handle the wild, the chaos, the unknown, the mystery, the others, the whispers on the edge of our vision, the better we’ll be able to actually navigate that situation on an individual and a cultural level. There is a problem with the rational, reasonable, incorporate-everything logic, with its call to squeeze everything for its monetary value, to quantify everything, to quantify the self. All of that may be fine and well, but only as long as it keeps a space open for those kinds of encounters, for that kind of imagination, for that kind of risk and vulnerability.

But that’s often what doesn’t happen. So, in a way, my work, not just in TechGnosis, but in all the writing and conversations that I’ve done and continue to do is about riding these edges. I just want to keep those portals open, to keep the spaces open, so that people don’t feel like they have to be fools in order to engage these broader ways of seeing the world. That’s why it’s really important to keep those portals, those edges open.

Read more by Erik Davis here.

Read more by Michael Garfield here.

The Dying Americans

Posted on December 10, 2015 by Reid Mukai

By Chad Hill

Source: The Hipcrime Vocab

I’ve often used the term “the final solution for the working class,” in reference to the current American policy towards its vast intercoastal peasantry who, for reasons of circumstance or inclination, do not subject themselves to the decade or so of wildly expensive education that qualifies them for the remaining jobs on offer. It may be a reflection of my readership that I haven’t received any pushback. As someone who is in that same working class, I can clearly see what is happening around me, and I’m not alone. David J. Blacker, in his book, The Falling Rate of Learning and the Neoliberal Endgame, also broached the subject of eliminationism, going so far as to study the German holocaust literature of the 1930’s which calmly and rationally discussed how to deal with the problem of getting rid of the millions of excess people whom the elites determined were “undesirable” in the brave new world they were creating.

After last week, it’s hard to argue that this is hyperbole. The news that America’s white working class between the ages of 45-65 has dramatically falling life expectancy, alone against nearly the entire world, received a surprising (to me) bit of coverage. When I first read it, I assumed it would be just another footnote story that I would write about here, but would be ignored everywhere else. But it received a surprising amount of coverage: even Paul Krugman wrote about it. I suspect a large part of that was due to the fact that it was research by the most recent economics “Nobel” laureate Angus Deaton and his wife, so it was harder to ignore than if it had been from some unknown researcher.

Often times you hear about a “dieoff” due to our situation. I think this study confirms beyond a doubt that the dieoff is already happening. Yet, consider that, before this study became popularized, you would have never heard about it in the mainstream press. Still doubt the collapse is real?

It’s not people dying in the streets, though, unlike some of the more feverish TEOTWAKI peak oil predictions. From the research, elevated levels of suicide and drug abuse are the prime culprits. It’s the million little deaths that go unnoticed in the obituary columns of decaying communities all across this formerly prosperous nation. Someone overdosed in a back alley. Or a meth lab exploded. Or maybe they were killed in a car accident, or decapitated while driving their motorcycle too fast. Or they were shot by police. Or they are dying of liver failure by age 40. Or, increasingly, they are ground down slowly by the many chronic diseases such as diabetes that are symptomatic of the chronic stress and horrid (yet highly profitable) junk food diet of most Americans. It’s a dieoff all right, but it’s never framed as such. You can see it all around you: the overcrowded jails filled with unemployed people, the overcrowded hospitals filled with sick, obese people, the folks standing on the medians and freeway offramps with cardboard signs and living their cars, all while the media just goes on reporting about spectator sports and celebrity gossip as though nothing bad is happening. Ignorance really is bliss.

The obvious analogy here is Russia after the fall of the Soviet Union, as many people writing about the study have pointed out: The Dying Russians (New York Review of Books). But there was no “collapse” of the United States. Or was there? Instead, we’re told by the media and politicians that everything in every way is getting better and better for everyone. Just look at the latest iPhone! Television screens are huge! Even the very poor have indoor plumbing! And you can Google anything you like, so what are you complaining about, loser?

Everything is famed as personal failure, thus the dieoff is just a million stories of individual failure with no overall pattern. Nothing to see here, more along. Study and “work hard” (whatever that means), and you’ll be okay. Certainly that fear is behind the epidemic of overwork, presenteeism and grinding hours of unpaid overtime Americans are putting in at work in the hope of not being next. It’s like being the model prisoner in a concentration camp, though. Ask the turkeys this month if being a good turkey had any effect on their ultimate fate. The Parable of the Happy Turkey (Global Guerrillas)

Up until now, Americans have been happy turkeys. Thus, they cannot comprehend what is happening to them. In America it is taken for granted that the ultimate locus of control is on the individual, and that there is no such thing as society. That belief has been heavily promoted over the past thirty years, along with the “create your own reality” and other assorted positive thinking nonsense (thanks Oprah!), and I think we can see why.

And since we see this always as personal failure and are not allowed to see it as systemic failure, the poor and formerly middle classes take it out on themselves instead of the system. After all, America is the land of opportunity; if you don’t “make it’ (whatever that means), you have no one to blame but yourself! Of course it is not true; the musical chairs job market and winner-take-all economy means that only a tiny number of people even have a shot at the middle class anymore, and a lot of that is due to geography, pre-existing social connections and luck.

They don’t have to kill you if they can get you to kill yourself.

And although framed as a tragedy, I wonder if to some extent this behavior on the part of working class males is a logical response to living in the kind of society that the United States has become. In a society that has no use for them anymore and where they have no sense of purpose and no hope for the future, it seems like suicide is a rational response. After a certain age, you realize that you have been sorted to the “losers” pile. If you live in the vast suburban flatland of Middle America, you likely live in a decrepit house somewhere in the anonymous miasma of strip-mall suburbia, buy disposable plastic crap made in China from baleful fluorescent-lit Dollar Stores, drive an older model pickup truck or SUV with a bad muffler and bad brakes over potholed streets and under rusty bridges, while all the jobs around you aside from the hospital and the university (which are mainly female-staffed) are minimum wage, dead-end jobs where you have to smile and wear a uniform. You realize you’re never going to meet the girl of your dreams since hypergamy is still baked into female mating choice, despite what some feminists claim. You realize you will never get that that great job that will allow you to be upwardly mobile and live in relative ease and comfort, and life is a bitter, hard struggle relieved only by the occasional joint and video games. Or you’re divorced and paying child support to your former wife who’s managed to keep herself presentable enough to hook up with one of the few remaining alpha-males, and half your income goes to support the kids you never see. Or your deadbeat loser children have been working multiple McJobs and living in the basement for years with no hope of even affording a one-bedroom apartment, and between them and the wife you never speak to anymore, you can’t even get into your own damn bathroom. You realize that, like most Americans, you will never afford to retire and will have to work your boring, dead-end job under your asshole supervisor until you literally drop dead. So why wait?

I mean, who wouldn’t kill themselves or anesthetize themselves with drugs and booze in an environment like this?

I once read an online commenter say that the rich are the beta testers for the lifestyles we will all be living in the future (and thus no restraints must be put on their wealth accumulation if we are to experience that future). But that commenter had it wrong. Rather, it is the poor–those living on less than a few dollars a day; those who live in ghettos marred by gangs and drug abuse; those with their heat, water, and streetlights turned off, who are the beta testers for the lifestyles that most of us will be “enjoying” in the near future. As William Gibson said, the future is already here, just not evenly distributed.

Given the above, I can’t help but think of the “Rat Park” experiment. Rats in a cage, when given a choice between water and drugs, would overdose themselves to death on the drugs, neglecting even basic self-maintenance. But a cage is a boring, repetitive, stressful environment for a rat, so you might expect the animals to anesthetize themselves with whatever was on offer. But rats living in an environment specifically designed to be pleasant and give the rats what they needed to thrive did not overdose themselves to death; they preferred healthier behaviors instead. It’s worth noting that most of the drugs we use today have been known for hundreds or even thousands of years, but were not abused by the native peoples who discovered them. That is reserved for modern, “advanced” societies. The Rat Park experiment (io9)

I once wrote that if you wanted to intentionally design a social environment to drive a primate insane, you would develop something pretty much identical to modern-day America (advertising, chronic stress, inequality, separation from nature and each other, boring, repetitive work, constant surveillance, and on and on…). It’s pretty obvious how Rat Park parallels life in twenty-first century America with its ubiquitous television, concentration-camp schools complete with metal detectors, freeways and cul-de-sacs and landscapes of Applebees™ and Walmarts; along with a steady diet of Pizza Hut and Taco Bell. It’s hardly an environment designed for human flourishing, is it? Rather, it is designed to maximize “economic growth” at all costs. The results of that experiment are as plain to see as they are predictable.

Most people who are still relatively comfortable are content to write off the people who are living in deprived circumstances among them right now, especially in the United States where so many of those poor are African-American. But more and more, whites are experiencing what they had previously dismissed as “black problems” due to their racist attitudes: the hopelessness and despair, the unemployment, the sociological pathologies; the drug abuse, divorces, domestic violence, youth gangs and so on. It’s not race, it’s environment, as Rat Park showed. Given a certain environment, an animal–any animal–will behave a certain way. Its totally predictable. We know this, but why do we pretend it is not true? Instead we reliably chalk it all up to “the Cult of Personal Failure.”

But this leads to an even larger question, one that gets to the heart of our modern predicament. We have to ask ourselves, what kind of society are we creating where so many people see death as preferable to living in such a society? In what kind of a society do people see life as so miserable that they prefer to kill themsleves, either slowly or immediately? That is, why is this the end result of hundreds of years of supposed “progress?”

Fundamentally, how do you feel about this society? Do you feel good about this society? Do you feel good about the school-to-prison pipeline? Do you feel good that there are more prisoners than small yeoman farmers? Do you feel good that it is a felony to show us how our food is produced? Do you feel good about students mortgaging their future for jobs that won’t exist by the time the bill comes due? Do you feel good about hospitals treating chronic diseases taking the place of farming and making things as basis of the America’s rural economies? Do you feel good about police armed with body armor and and tear gas? Do you feel good about wall-to-wall advertising preying on our weakness and insecurities? Do you feel good about the atmosphere of incessant adversarial competition against everyone else for the shrinking pool of jobs on offer which pay enough to afford rent?

If so, why?

This puts a crimp on the Panglossian “everything in every way is getting better for everyone,” rhetoric that you hear so often in the media. What I find amusing is that this rhetoric used to come from the Left–that the welfare state would eliminate poverty, racism, that everything was under control and circles of cooperation would get larger and larger, and so on. But now, I mostly hear the Panglossian rhetoric coming primarily from the Right, whose preferred God is the unregulated “free” market. It’s in the Right-wing propaganda now that I constantly hear how wonderful everything is, and that those who are complaining are either delusional misfits or just jealous. Here is a prime example from the Right-wing National Review:

Good news abroad, and good news at home: In 1990, there were 2,245 murders in New York City. That number has fallen by 85 percent. Murders are down, often dramatically, in cities across the country. The overall rate of violent crime has fallen by about half in recent decades. U.S. manufacturing output per worker trebled from 1975 to 2005, and our total manufacturing output continues to climb. Despite the no-knowthings [sic] who go around complaining that “we don’t make things here anymore,” the United States continues to make the very best of almost everything and, thanks to our relatively free-trading ways, to consume the best of everything, too. General-price inflation, the bane of the U.S. economy for some decades, is hardly to be seen. Flexible and effective institutions helped ensure that we weathered one of the worst financial crises of modern times with surprisingly little disruption in the wider economy. Despite politicians who would usurp our rights, our courts keep reliably saying that the First Amendment and the Second Amendment pretty much mean what they say. I just filled up my car for $1.78 a gallon.

The world isn’t ending.

The world is healthier, wealthier, and less hungry mainly because of the efforts of millions of unknown investors, entrepreneurs, farmers, workers, bankers, etc., all working without any central coordinating authority….There is much left to do: We have unsustainable fiscal situations in the Western welfare states, irreconcilable Islamist fanatics originating in points east but spread around the world, environmental challenges, and that tenth of the human race that still needs lifting out of hardcore poverty. But we have achieved a remarkable thing in that unless we mess things up really badly, in 50 years we’ll be having to explain to our grandchildren what a famine was, how it came to be that millions of people died every year for want of clean water — and they will look at us incredulously, wondering what it must have been like to live in the caveman times of the early 21st century.

Liberal Democracy and Free Markets, Take a Bow (National Review) Or better yet, strap on flight suit and hang up a “Mission Accomplished” banner.

Yes, for the folks on the Right, it truly is a Golden Age. There are a few flaws in the ointment like those pesky welfare states and all that but, hey, gas is cheap! Can’t you just feel the bright, shiny future ahead? Here’s a another sampling from The Wall Street Journal:

The trajectory of the world doesn’t justify this pessimism. People are living longer on every continent. They’re doing less arduous, backbreaking work. Natural disasters are killing fewer people. Fewer crops are failing. Some 100,000 people are being lifted out of poverty every day, according to World Bank data.

Life is also getting better in the U.S., on multiple measures, but the survey found that 55% of Americans think the “rich get richer” and the “poor get poorer” under capitalism. Sixty-five percent agree that most big businesses have “dodged taxes, damaged the environment or bought special favors from politicians,” and 58% want restrictions on the import of manufactured goods.

Has the World Lost Faith in Capitalism? (WSJ) Silly people, how dare they “lose faith!” Once we stamp out every last vestige of “socialism” we can restore that faith.

So what’s going on here? Listening to the Right, one gets the appearance that things have never been better, and that people are just totally irrational and determined to complain no matter how good they have it, despite voluminous scientific literature portraying optimism bias as the default cognitive condition for most people.

I think it stems from two areas – the Neoliberal experiment has clearly been an unmitigated disaster, so the literature constantly has to portray a rosy picture for those still living in the elite ideological bubble by cherry-picking data: Cheer – Inequality is Falling Globally!! (and similar nonsense) (Pieria). It’s much like the “happy peasant” literature that prevailed on the eve of the French Revolution and during early Industrialism to convince upper-class readers that their efforts were actually for the good of all, not just themselves; it’s just that the feckless peasants were too short-sighted to realize it. The elites, for some reason, have a need to believe, despite all the evidence to the contrary, that the free-market fundamentalism they subscribe to is making everyone–not just them–better off. Perhaps it is a remedy for cognitive dissonance and a guilty conscience.

The second agenda might be to cover up the agenda of eliminationism referred to above.
Going back to the original topic, it’s fairly clear that getting rid of the lower classes is, as The Joker put it in The Dark Knight, “all part of the plan.”

Now that might seem a bit paranoid, but consider this – the governors of many states are withdrawing basic social protections for their poorest citizens, and actually paying for the priviliege! Here’ Kevin Drum:

…the states that refuse to expand Medicaid are denying health care to the needy and paying about $2 billion for the privilege. Try to comprehend the kind of people who do this.

The residents of every state pay taxes to fund Obamacare, whether they like it or not. Residents of the states that refuse to expand Medicaid are paying about $50 billion in Obamacare taxes each year, and about $20 billion of that is for Medicaid expansion. Instead of flowing back into their states, this money is going straight to Washington DC, never to be seen again. So they’re willing to let $20 billion go down a black hole and pay $2 billion extra in order to prevent Obamacare from helping the needy. It’s hard to fathom, isn’t it?

Red States Spent $2 Billion in 2015 to Screw the Poor (Mother Jones)

Last week, McClatchy documented the unnecessary pain being inflicted on red state residents by their elected Republican representatives…Roughly 260 million Americans (roughly 85 percent) already have health insurance provided by their employers, the government or through individual policies they purchased. In places like Oregon, Colorado, New York, California and other, mostly Democratic states, governors and state legislators accepted the expansion of Medicaid to provide free health insurance for those earning up to 138 percent of the federal poverty (FPL). For those earning between 138 and 400 percent of the FPL, the Affordable Care Act’s subsidies will help them purchase insurance in the private market. But in the states where Republicans said “no” to the expansion of Medicaid, the picture is much different. As the AP explained the coverage gap:

Nearly 2 in 3 uninsured people who would qualify for health coverage under an expansion of Medicaid live in states which won’t broaden the program or have not yet decided on expansion.

The resulting Republican body count is staggering. Thanks to the GOP’s rejection of Medicaid expansion, 1.3 million people in Texas, 1 million in Florida, 534,000 in Georgia and 267,000 in Missouri will be ensnared in the coverage gap.

Health Insurance “Coverage Gap” Coming To A Red State Near You (Crooks and Liars)

That’s right, Republican governors are blowing a hole in their budget just to remove social protections for the poor. Often times, “unaffordability” is cited as a justification, but clearly this is not at work here. It’s pure ideology. But what is that ideology? Here’s more detail:

American conservatives for the past several decades have shown a remarkable hostility to poor people in our country. The recent effort to slash the SNAP food stamp program in the House; the astounding refusal of 26 Republican governors to expand Medicaid coverage in their states — depriving millions of poor people from access to Medicaid health coverage; and the general legislative indifference to a rising poverty rate in the United States — all this suggests something beyond ideology or neglect.

The indifference to low-income and uninsured people in their states of conservative governors and legislators in Texas, Florida, and other states is almost incomprehensible. Here is a piece in Bustle that reviews some of the facts about expanding Medicaid coverage:

In total, 26 states have rejected the expansion, including the state of Mississippi, which has the highest rate of uninsured poor people in the country. Sixty-eight percent of uninsured single mothers live in the states that rejected the expansion, as do 60 percent of the nation’s uninsured working poor.

These attitudes and legislative efforts didn’t begin yesterday. They extend back at least to the Reagan administration in the early 1980s…

Most shameful, many would feel, is the attempt to reduce food assistance in a time of rising poverty and deprivation. It’s hard to see how a government or party could justify taking food assistance away from hungry adults and children, especially in a time of rising poverty. And yet this is precisely the effort we have witnessed in the past several months in revisions to the farm bill in the House of Representatives. In a recent post Dave Johnson debunks the myths and falsehoods underlying conservative attacks on the food stamp program in the House revision of the farm bill.

This tenor of our politics indicates an overt hostility and animus towards poor people. How is it possible to explain this part of contemporary politics on the right? What can account for this persistent and unblinking hostility towards poor people?

Why a war on poor people? (Understanding Society)

Let’s restate this to be clear to make sure the point is not lost: these states are willing to lose money in order to make sure their poor die quicker. Clear enough? And we’re not even talking about things like the outright cold-blooded murder of the homeless by police, the breaking up of homeless encampments, the mass incarceration, and return of debtors’ prisons, and so on. It’s expensive to be poor in America. We do everything by the Matthew Effect from jobs to education, and wonder why class mobility is nonexistent. Yet we’re still told that everyone wants to be an American, that it’s the land of opportunity, and that things have literally never been better.

Thrown in jail for being poor: the booming for-profit probation industry (Guardian)

Much of the well-funded efforts of plutocrats and their allies has been to repeal the Affordable Care Act (which was designed by Right-wing think tanks), not to reform it or replace it with something more effective, but to return to the predatory status quo ante. Now, businessmen may be greedy, short-sighted and sociopathic, but they are not stupid. They surely know that the American System is wildly more expensive than any other place on earth, but they are willing to lose billions of dollars in profit just to make sure people don’t get health care! Think about that. A European friend said to me once that he didn’t understand why American businesses seemed to want sick, insecure employees who either don’t have access to health care, or are worried about going broke trying to pay for it. It seemed totally irrational to him. But it’s only irrational if you don’t understand the underlying ideology of eliminationism. Some societies actually want to kill off their own people, as Nazi Germany and other tragic examples have shown.

And it’s of a piece with the withdrawal of mass education that Blacker documents in his book. The elites are disinvesting from society in every way because they just don’t need us anymore. And their propaganda mills are dedicated to making sure the blame is squarely placed on individuals so that we will internalize learned helplessness which has prevented any effective resistance. Or their mills are insisting that it’s just not happening, and everybody is really better off, as we saw above, except for a few churlish losers who have no one to blame but themselves (and are probably looking for a handout).

Who turned my blue state red? (NYT). A great explanation of America’s crab mentality.

I’ve featured the analogy of horses that some economists use before. Human beings may have found other jobs (which is debatable), but the population of horses just went down in line with the work that was available for them to do. I think it’s obvious that this is a good analogy for what’s happening.

…Similarly, one could just as easily have said, a century ago, that: “Fundamental economic principles will continue to operate. Scarcities will still be with us…. Most horses will still have useful tasks to perform, even in an economy where the capacities of power sources and automation have increased considerably…”

Yet demand for the labor of horses today is vastly less than it was a century ago, even though horses are extremely strong, fast, capable and intelligent animals. “Peak horse” in the U.S. came in the 1910s, I believe. After that there was no economic incentive to keep the horse population of America from declining sharply, as at the margin the horse was not worth its feed and care. And in a marginal-cost pricing world, in which humans are no longer the only plausible source of Turing-level cybernetic control mechanisms, what will happen to those who do not own property should the same come to be true, at the margin, of the human? What would “peak human” look like? Or–a related but somewhat different possibility–even “peak male”?

Technological Progress Anxiety: Thinking About “Peak Horse” and the Possibility of “Peak Human” (Brad DeLong)

Off to the glue factory with the middle class, then. As long as it’s kept diffuse enough, it will never be picked up on; “Work Makes You Free” hangs in the air over our heads instead of over the entry gates. Perhaps we should just inscribe it on the Gateway Arch.

So, all told, the self-destructive habits of the middle-aged white poor are hardly irrational. Rather, it seems to be to be the most rational response to the type of world we’ve created. The only question is, why do so many of us apparently want to stay on this path?

Neoliberalism, Austerity, and Authoritarianism

Posted on November 25, 2015 by Reid Mukai

By Riad Azar

Source: New Politics

Ask anyone what neoliberalism means and they’ll tell you it’s an economic system that corresponds to a particular economic philosophy. But any real-world economic system has a corresponding political system to promote and sustain it. Milton Friedman, who has become known as the father of neoliberal thinking, claims in his text Capitalism and Freedom that “the role of the government … is t o do something that the market cannot do for itself, namely, to determine, arbitrate, and enforce the rules of the game.”* While neoliberalism’s advocates like to claim that the political system that corresponds to their economic preference is a democratic, minimal state, in practice, the neoliberal state has demonstrated quite the opposite tendency.

This essay will begin by sketching out the core tenets of neoliberal theory, tracing its history from the classical liberal tradition of the Enlightenment. I will then present some hypotheses on how relations between the neoliberal state and society operate, contrasting the state theories of Ralph Miliband and Nicos Poulantzas to create a framework that shows how the neoliberal state is a product and enforcer of anti-democratic practices. I will argue that the implementation of neoliberal economic policy, and the subsequent evolution of the neoliberal state, has historically been completed through anti-democratic methods. Further, in an effort to produce social relations that are more favorable to the accumulation of capital, austerity is employed as a tool to move further toward a market society, creating a larger, more interventionist state and promoting authoritarianism.

Neoliberalism in Theory

The term neoliberal is often convoluted, confused, and misinterpreted, especially in the American context where the center-left Democratic Party has traditionally held the title of liberal. The original liberals, or classical liberals as they are usually called, were those Enlightenment-era thinkers of Western European origin who desired to limit the authority of the feudal state and defended individual rights by restricting the power of the state, the crown, the nobility, and the church. The “neo” prefix serves as a romantic symbol, an attempt at establishing a (sometimes forced) common ground with historical figures like Adam Smith and the classical liberals, who challenged the tendencies of the monarchy to interfere in the economy for its own gain, producing inefficiency. Neoliberal economic thinkers are famously known for deriding government intervention in the economy, precisely because they trace their foundation to a period when markets were seen not just as a source of better economic outcomes, but as a weapon to challenge concentrated political power.

This revamping of liberalism appeared in the twentieth century at a time when its proponents believed they were facing a similar struggle against the expanded state apparatuses of Europe—communist, social-democratic, and fascist. Friedrich Hayek, whose text The Road to Serfdom, published in 1944, is arguably the most celebrated of the neoliberal canon, sought to show how government interference in the economy forms the basis of fascist and other totalitarian regimes, contrary to the then widely accepted notion that it was capitalist crisis that had produced fascism in Europe. For Hayek, the strong state, whether in the form of fascism, Soviet communism, or the creeping socialism of the British Labour Party, was to be eschewed.

If neoliberalism springs from a desire to combat the growing power and influence of the state, how is it that neoliberalism has produced not only a very robust state apparatus, but, as I will argue, an authoritarian one? The answer is that neoliberalism in practice has been quite different from its theory.

The Necessities of the State
in Neoliberal Theory

As David Harvey points out in A Brief History of Neoliberalism, the neoliberals’ economic ideals suffer from inevitable contradictions that require a state structure to regulate them. The first of these contradictions revolves around the role of law to ensure the individual’s superiority over the collective in the form of private ownership rights and intellectual property rights (patents and copyrights). A judicial system is necessary to designate and regulate the interaction between private actors on the market. While intimations of the regulatory state can be seen in this formulation, it is hardly anything controversial. Only the most extreme of laissez-faire economic thinkers would not acknowledge the requirement of a state structure that creates the space for and regulates contracts.

The second contradiction derives from the elites’ historical ambivalence regarding democracy and mass participation. If the people were free to make decisions about their lives democratically, surely the first thing they would do is interfere with the property rights of the elite, posing an existential threat to the neoliberal experiment. Whether these popular aspirations take the form of drives towards unionization, progressive taxation, or pushing for social policies that require the redistribution of resources, the minimal state cannot be so minimal that it is unable to respond to and crush the democratic demands of citizens. After all, as pointed out in the first contradiction, the neoliberal state exists in theory to guarantee the rights of the individual over the demands of a majority. Therefore, a system must be put in place that protects against the “wrong” decisions of a public that is supposed to buy, sell, act, and choose freely.

Two Levels of Authoritarianism

Any method that seeks to subvert the democratic demands of citizens, whether through force, coercion, or social engineering, is authoritarian. I argue here that the neoliberal state is authoritarian in two distinct but related forms. First, the historical imposition of neoliberalism on nation-states is the result of anti-democratic forces. Second, the maintenance of neoliberalism requires a market society achieved through a transformation in civil society. For this transformation to take place, welfare states must be slimmed down by austerity policies in order to turn over to the market potentially lucrative sectors of the social economy (in health care, education, social security, and so on). Public resources must become privatized; the public good must be produced by private initiative. Neoliberal economic policy can only function with a state that encourages its growth by actively shaping society in its own image, and austerity is the tool to push for that transformation. While the subversion of democracy is clearly authoritarian, the drive towards a market society and the social engineering necessary to maintain that society are further expressions of the de facto authoritarianism of neoliberalism and the neoliberal state.

Austerity traditionally has been defined as the economic policies surrounding deficit cutting. When public debt runs too high, according to the theory, the accounts must be balanced by cutting spending and raising taxes. It is important to look past the theory to see the results of austerity in practice and understand austerity as a social-historical force. To do this, one must define austerity from the perspective of its victims. Pablo Iglesias, leader of the Podemos party in Spain, in his February 17 appearance on the Democracy Now! show, did just that by arguing that austerity is when people are forced out of their homes, when social services do not work, when public schools lack resources, when countries do not have sovereignty and become the colonies of financial powers. He closes by saying that austerity is the end of democracy, because without democratic control of the economy, there is no democracy.

The State and Society

The nature of how the state affects society has been a contentious topic within left traditions. Most notably, the debate between Ralph Miliband and Nicos Poulantzas that took place in the pages of the New Left Review in the early 1970s refreshed the study of the state. Miliband, in his The State in Capitalist Society, stressed an instrumentalist position, arguing that the reproduction of capitalism in society is due to the socialization of the ruling class in the tradition of capitalist dogma. As a large proportion of those who dominate the state and control its levers come from an elite education (he was writing from the perspective of British politics in the mid-twentieth century), it’s no surprise that they believe their theories to be correct and just, while the state they run serves the interests of capital. The writings of Poulantzas, in particular Political Power and Social Classes, argued a structuralist position strongly influenced by the thought of Louis Althusser. He claimed that the relation between the ruling class and the state was an objective relation, meaning that the coincidence of bourgeois ideology with the ideology of the state was a matter of how the system itself is organized. Their two state theories, the former arguing that the state is an instrument of the ruling class and the latter arguing that the state is the objective result of the capitalist system, shed light on the differences in conceptualizing not only the capitalist state, but how the state relates to and is legitimized by society. Is the market society a result of policies implemented by individuals in power who are trained in a particular neoliberal tradition, or an objective outcome of capitalist social relations that are the superstructural product of a system?

What could arguably be the genius of neoliberalism is the way in which it takes these two approaches to state theory and blends them. On the one hand, for Miliband, the neoliberal state is the extension of ruling-class free-market ideology, propagated by government bureaucrats, military officials, and technocrats who can speak no other language than that of the privileged status of capital and who hold the belief that they are serving the greater good. On the other hand, as Poulantzas suggested, neoliberalism needs to ensure its own survival by bending civil society, political institutions, and democracy to its will.

A state that so blatantly puts the rights and needs of one small class of citizens over others cannot be installed without a struggle. And further analysis shows us that once neoliberal regimes come into power, a certain degree of social engineering and coercion are necessary in order to guarantee the submission of the population and ensure the smooth accumulation of capital. In what follows, I would like to lay out how neoliberal austerity regimes were installed, and also draw on hypotheses of how they are maintained. However, as each socio-political system is unique in its history, culture, norms, and traditions, the manifestation and maintenance of the neoliberal state differs depending on whether we are talking about core countries or peripheral ones, to use the terminology of World Systems Theory. The common denominator is the empowering of elites over the masses with the assistance of international forces through military action or financial coercion—a globalized dialectic of ruling classes.

Peripheral Neoliberal States

In the periphery, those countries that have been dominated by colonial and neocolonial developed countries, economic and political trends beginning in the 1970s show that neoliberalism has been installed by the use of force. The Latin American experience demonstrates how neoliberalism was established through military operations and coups d’état. In Chile, the democratically elected president Salvador Allende was overthrown and the U.S.-backed dictatorship of Augusto Pinochet proceeded to crush labor unions and popular movements, privatizing a chunk of the public sector. When Pinochet stepped down, initiating a transition to democracy, he left behind the constitution that he had signed and put in place after the coup. Demands to chip away at this “constitution of the dictatorship,” as it is referred to in Chile, are present in Chilean social movements, most recently the student movements seeking to reform the deeply unequal private higher education system. The reforms that were the bedrock of a reactionary counter-revolution in the country were brought about through force, violence, and physical coercion as seen in the torture and systematic repression of the regime’s opponents.

The maintenance of such a regime could only be guaranteed through the dissolution of civil society to ensure that all avenues of dissent were illegal. Political representation in the National Congress was impossible because it was dissolved as civil liberties were proscribed. Organizations of a civil society, including unions, political parties, and groups set up by the Catholic Church to tend to the needs of the families of the disappeared, were treated as opposition organizations and were forbidden. It is estimated that tens of thousands of Chileans were tortured, while up to 200,000 were exiled, shocking the population into submission through fear. The laws regulating dissent were so strict that when the plebiscite was held to transition to democracy, special arrangements needed to be made to allow political groups the ability to organize and campaign, an attempt to reinvigorate a minimal civic culture in the country.

While Chile was the first and one of the main examples of the growth of neoliberalism, it has been far from unique. Economic “shock therapy” has become central to U.S. foreign policy, from Argentina in 1976 to the reintegration of post-communist states into the global capitalist economy. A quick comparison between countries listed as “not-free” by Freedom House and those that employ free-market neoliberal policies stresses this point. From Kazakhstan and Azerbaijan in Central Asia, to the crisis-ridden state of Mexico, and the neoliberal reforms of dictators in the Middle East and North Africa, the notion that capitalism and democracy form a symbiotic relationship and support each other has been debunked. The dissolution of civil society goes hand in hand with the imposition of a neoliberal state through violence, in order to ensure that threats to the state’s activities remain unchallenged.

Core Neoliberal States

In core countries, meanwhile, austerity and authoritarianism follow a different pattern. There, neoliberal political systems have been created through financial coercion and are held hostage by financial interests due to the economic “necessities” created by bankruptcies and budget deficits. The test in this case is New York City, where the consequences of the depression of 1974-75 run deep. Kim Moody, in From Welfare State to Real Estate, traces the political and economic alliance that took advantage of social pressures from deindustrialization, white flight, and global economic crisis to implement the reforms that would give rise to a complete transformation of the city’s social fabric. His analysis shows how a united business elite was able to thwart the democratic interests of the city’s working classes by using the budget, the deficit, and financial coercion to rein in what they saw as an unsustainable welfare state. A crisis regime was put in place representing a business class unified in its desire to reshape the social democratic polity of New York City, using the city government to achieve this transformation. What began as a move by bankers to shut the city out of the bond market evolved by 1975 into the establishment of the Emergency Financial Control Board, which set its sights on imposing tuition on the City University of New York system, increasing the fares for mass transit, and limiting welfare payments. It’s a story that has become all too familiar in the twenty-first century and a tactic that is being replayed in other cities, states, and nations.

Given the history of uninterrupted constitutional rule in the United States, the installation of neoliberalism requires the engineering of society through the transformation of institutions. By giving the market the freedom to determine when wages will be lowered, when jobs will be shed, and when communities will be destroyed, while simultaneously dismantling social welfare programs to increase the market’s authority, a social crisis is produced that requires a police force to maintain order. This relationship has inspired the work of sociologist Loïc Wacquant for two decades. Combining a Marxist materialist approach to observe the socio-economic conditions that have influenced the growth of the American penal system with a Durkheimian symbolic perspective, which stresses how the prison serves as a symbol of disciplining power, his work Punishing the Poor argues that the expansion of correctional facilities should be seen as correlated with the rise of the neoliberal state. He notes how “welfare reform” corresponded with the expansion of the imprisoned population, signaling a shift in how contemporary neoliberal society treats the most vulnerable among us. This means that not only do prisons and jails serve as the place to physically keep those who have been convicted of criminal behavior, but they also serve as an alternative source of labor-power harvesting. The Thirteenth Amendment to the U.S. Constitution explicitly allows penal labor, and while this has historically been organized by state-run corporations such as UNICOR, recent legislation allows the private sector to tap into the penal labor pool. Meant as an alternative to outsourcing, this practice is referred to as “smart-sourcing” (see http://www.unicor.gov/services/contact_helpdesk/).

The consequences of neoliberal reform and the penal society in the United States are related in more ways than one. While prisons are filled with those who have been affected by the welfare-to-workfare policies and war-on-drugs-era sentencing laws of the 1980s and 1990s, prisons are also an example of the process of privatizing government institutions and insuring that those institutions create profit for private investors, making the neoliberal state an agent in this wealth redistribution. The process of regulatory capture, where special interests are able to control the agencies that are supposed to be regulating them in the public interest, illustrates this point. While the market dictates the scope of what is possible for state institutions that are beholden to government funding, the market also creates the conditions, during periods of financial crisis, that lead to the bankrupting of state institutions through austerity measures and the privatization of these public assets.

Europe has also been subjected to the establishment of neoliberalism through financial coercion; however, the European case presents us with an instance of unprecedented democratic subversion on behalf of international capital. This is not to say that the establishment of neoliberalism has been imposed from the outside with no domestic encouragement, but rather that Europe presents us with a particular case of an alliance between the bourgeoisie of individual European nation-states and their counterparts in international institutions such as the European Union (EU) and the European Central Bank (ECB). The rise of the political party Syriza in Greece and the election of Alexis Tsipras as prime minister, while nurturing a cautious hope, has also shown the extent to which the democratic aspirations of the citizens of Greece are sabotaged for the benefit of financial interests represented by the European Commission, the ECB, and the International Monetary Fund. The sovereignty of European countries is being attacked by advocates of neoliberalism under the guise of EU and ECB policy. In Italy, the technocratic government of Mario Monti was appointed without an election following the resignation of Silvio Berlusconi. Meanwhile in Ireland, the ECB held the democratically elected government in a stranglehold by attaching a series of austerity conditions to any bailout agreement. In practice, democratic demands must be made within the tight parameters that have been established by bankers, making a mockery of democracy itself.

The manifestation and maintenance of neoliberalism in Europe can be understood through the changing notions of citizenship in European countries. While at one time the citizenry was the sole constituency, a new group has evolved that claims dominance over the nation-state: creditors. According to the German political economist Wolfgang Streeck, in his work Buying Time: The Crisis of Democratic Capitalism, the growth of creditors has placed a strain on the state, allowing unelected and anti-democratic authorities to regulate how the state handles its relations with its citizens, and defining the nature of state-society relations. The introduction of this “constituency” of opposing interests into the political equation holds the polity of Europe within a loop. On the one hand, the government is supposed to be representative of the people, while on the other, international forces are recognized as citizens and therefore claim a voice in how the government conducts its business. While the neoliberal state was imposed through financial coercion, it is maintained through the creation of new political constituencies.

Conclusion

By blending the state theories of Miliband and Poulantzas, we are able to see the neoliberal state in a multidimensional form. It is not solely the result of the decisions of those in power, but also a complex system that constructs its own acquiescence. The neoliberal state is a qualitatively distinct form of the capitalist state. Its authoritarianism is present not only in its unquestioned defense of the interests of capital, but also in the way that it actively seeks to shape society to be more favorable to its goals. Peripheral countries have borne the burden of this violence as their position within the world system is secondary and practically dispensable. Core countries require a much more skilled intervention through the introduction of reforms and the transformation of institutions to solidify obedience in the form of the market society. Austerity, understood as a social-historical force, is the tool of the neoliberal state to subvert democracy and promote authoritarianism.

The Reason You Work So Hard to Participate in the Rat Race

Posted on November 15, 2015 by Reid Mukai

By M.J. Higby

Source: Waking Times

Ralph Waldo Emerson once said, “A man in debt is so far a slave.” Money has no intrinsic value yet we spend our days damaging our health and spirit in order to obtain it. Why do we sacrifice our well-being for it? Is it the cliché that “we just want to provide a better life for our kids than we had?” Is it just way of the civilized world? The most important question to ask, however, is what power do we have to change this way of thinking and living? The reality is simple: money is a vehicle for social control. Debt makes us good, obedient workers and citizens.

The traditional workweek started in 1908 at The New England Cotton Mill in order to allow followers of the Jewish religion to adhere to Sabbath. With the passage of The Fair Labor Standards Act in 1938, the 40-hour workweek became the norm. Data from the 2013 American Community Survey showed that the average commute time in America is about 26 minutes each way. According to a Gallup poll, the average workweek in America is 34.4 hours, however, when only taking into account full time workers, that average shoots up to 47, or 9.4 hours per day during a 5-day workweek. Keeping averages in mind then, between commuting, working and figuring in an hour for lunch (usually less), that puts us at approximately 11 hours and 40 minutes for the average full time worker. If you have a family with young kids, just add in another few hours for homework, baths, etc.

When the day is done, how much time do you have for yourself? To exercise, meditate or otherwise unwind the way that all the healthy living gurus preach? And how much of yourself, your presence of mind, is left to devote to family? We give the company the heat of our most intense mental fire while our families get the smoke. Yet Jeb Bush, the 2016 GOP presidential hopeful, says we need to work more.

The answer to why we put ourselves through this daily grind is multifaceted. The most pervasive reason is workplace and societal pressures. We are raised in a matrix of sorts. The cycle starts around the age of five when we are expected to adhere to a regimented 8-hour day of school. At this age, we don’t have the intellect to question why, so we mechanistically follow the path that’s laid out. This daily path becomes engraved in our minds and becomes as automatic as the sun’s daily journey. Our school system is adept at churning out working class individuals en masse. We are taught along the way not to question authority, again adhering to the working class mentality.

On the opposite end of the spectrum are those in power. They are the ones that like to color outside the lines. Many books abound with titles such as The Wisdom of Psychopaths that illustrate how people with psychopathic traits, ones who don’t tend to follow rules, are often found in managerial roles such as CEOs all the way up to presidents of countries. With these rare manipulative, coldhearted personalities in place and the rest of us following like good sheeple without questioning, the stage is set for compliance.

If you have been in the working world long enough, then the following statement should ring true: if you work extra hours, you are a great worker; if you decline, you’re useless and apathetic. In the work world, there’s typically no in between. The pressure to succeed for the pride and benefit of the company unfortunately supersedes that of the pressure to be a good parent, sibling, son or daughter. According to a study done by the economic policy institute, between 1948 and 2013, productivity has grown 240% while income for non-managerial workers has grown by 108%. To make up for this discordance, pride of doing what’s best for the company has been employed as a motivational tactic. This tactic has been used as a sharp IV needle that’s been inserted into our veins and we have willingly ingested the contents that are injected through it. Pressure to conform toward achieving the company’s goals has overcome our will to be compensated accordingly.

The other side of this pressure comes from society as a whole outside the education/workplace. A close friend of mine works for a state court and makes about $40K/year. He is also a self-employed business owner on the off hours. I estimate that he works about 70-80 hours a week. He owns a home in a well-to do neighborhood and he drives a seventy thousand dollar luxury car. This crystallizes the saying ‘big hat, no cattle.’ But when a lie is told over and over, the lie becomes the truth.

When we look at someone who drives a luxury car and lives in an upscale part of town, we see this as success because of how often that visual of it has been pounded tirelessly into our minds. We fail to see that these are nothing but symbols of success and false ones at that. They appear real because as a society, we have been conditioned to see them this way by the advertising industry. In the book, The Millionaire Next Door, the authors annihilate this illusion. Numbers don’t lie and the statistics show that most true millionaires, those with a net worth of over one million dollars, do not own those luxuries that we typically associate with success and wealth. They view them as the reality of what they are: a depreciating liability. According to the book, the typical millionaire owns a home in the two to three hundred thousand dollar-range and a non-luxury automobile. If something goes wrong with either, they have the cash reserves to fix it. On the other hand, the commonplace owner of the luxury home and car can’t afford the roof and the tires respectively without going deeper into debt if they should need replacing.

Ownership of these symbols of wealth becomes a self-perpetuating illusion to satisfy the psychological need for acceptance. Unfortunately, human behavior dictates that emotional needs often override logical thinking. It’s been said that the borrower is slave to the debt-owner and with luxury items, debt is the rule, not the exception. Debt is healthy for those in power and contributes to a needy and thus obligated worker.

The current wisdom of slave, spend and save for retirement has only one destiny. That destiny can be summed up in three sentences. Spend your healthiest and most productive years working to support a life of materials and thus illusions of success while elevated stress damage your health. During this time, be sure to save enough money for retirement so you can enjoy those years of the subsequent poor health. And lastly, do it in the name of pride for your company and country.

I take pride in being American, as I’m sure most Americans do, however, if you’re reading this you’re likely smart enough to see the holes in the daily grind. It saps our creative potential and our physical, as well as our spiritual energy. We don’t need any studies to tell us how stressed we are and subsequently, how unhealthy we are. The physical manifestations of stress such as obesity, hypertension, heart disease, increased risk of cancer, depression, anxiety and many others tell us all we need to know. They tell us that we need a better work/life balance. They tell us that the pendulum has swung too much in the direction of work and away from life. Fortunately, there’s a way that we can take it back.

The most important way to restore this balance is to realize the power that we, as consumers, hold. Tyler Durden, the protagonist in the film, Fight Club said it best…

“…advertising has us chasing cars and clothes, working jobs we hate so we can buy shit we don’t need.”

The marketing and advertising industry know, more than anyone else, what motivates the human mind and how to tap into those instinctual drives. To defend against this industries seductiveness, we need to journey within ourselves and bring to light what’s really important to us. What most of us will find is that experiences and time well spent, not materials, are what makes us happy. In the book, aptly titled Well Being, the authors Tom Rath and Jim Harter discuss how experiences have been proven to make us happier than material posessions.

We revel in the anticipation of the experience, we enjoy the experience itself and we look back on it fondly for as long as we live. We do this while the expensive car or house that we borrowed money long ago to obtain falls apart causing us to borrow more money. If we live according to the rule that everything we purchase, with the exception of a home, is acquired by cash, then we fail to become slaves to debt and by extension, work. We no longer relinquish our power to creditors.

Oscar Wilde was famously quoted as saying that anyone who lives within their means suffers from a lack of imagination. Materialistically speaking, living by this notion will bind us with shackles to a life of debt servitude. When we rip those shackles of debt from our wrists, our minds become clear and we see what truly makes us happy. We spend more time with friends and family. We focus on our passions and hobbies. In essence, we get back to the foundation of what it means to be human. After all, none of us will ever arrive upon the mountain of our last moments of existence wishing we spent more time at the office. We will instead arrive wishing we completed that book, that painting or that experience with those we love most. For those can be purchased not with debt, but with time. And there is no more cunning, covert and deceitful thief of time as that villain we call debt.

About the Author

M.J. Higby practices medicine in Phoenix, AZ. He is passionate about martial arts, most notably Brazilian Jiu Jitsu. He enjoys writing about mental, spiritual and physical well being and questioning the methods by which we attain it. You can reach him on Facebook and Twitter @MJHigby

Oil and Money – Lessons Learned

Posted on November 11, 2015 by Reid Mukai

This is a concluding post for an excellent 7 part long-form series featured on the Hipcrime Vocab blog. While this serves as an adequate synopsis of what was covered, I highly recommend the series for it’s depth and scope starting with the introduction.

Source: Hipcrime Vocab

The first thing I learned is that I bit off more than I could chew, lol. I was intending a simple book review, and it turned into a lot more than I intended to write. I also learned how difficult and thankless a task blogging can be. I’m glad at least a few of you chimed in to let me know you enjoyed it.

One major thing I learned (which I already sort-of knew) is how much real resources have to do with the economy, and economic history, despite economists’ insistence that land, labor and capital are all that matter. In fact, real resources appear to be the MAJOR driver of our economic fortunes. Even Forbes magazine had to admit: The Recessions of 1973,1980,1991,2001,2008 Were Caused By High Oil Prices. Energy doesn’t matter, huh?

I was really taken aback at how recent this all is. I was somewhat aware the historic problem with oil was that there was too much of the stuff. Eric Roston, in The Carbon Age, writes, “Gasoline was a throwaway by product of kerosene refining until the early 1900s, used sometimes in solvents or as fuel for stoves. In 1892, two cents a gallon was a decent price. For another thirty years, apothecaries were the makeshift filling stations.”

But I had no idea just how much of a glut there was and how people thought it would last forever. That it was so cheap we needed the Texas Railroad Commission to hold back production so that the prices would be high enough. I mean, this substance contains the equivalent of ten to eleven years of human labor (1750 Kilowatt hours of human labor), for crying out loud! And it is a non-renewable resource! I was amazed at how far we went in coming up with new uses for the stuff, to the point destroying perfectly good and workable infrastructure just so we could use more of it. Can anything be more insane?

The long boom was driven by the exploitation of oil as a resource. This led to the dominance of the ICE (Internal Combustion Engine). All of the knock-on effects of the ICE were behind the post-war boom. I mean, you could write a book about all the economic development caused by cars and trucks. In fact, truck driver/delivery is still the most common job in most states to this day! The ability to deliver goods cheaply anywhere had so many knock-on effects, from the creation of whole new cities to the rise of big-box retailers. Let’s not forget that everything in that big-box retailer is made from plastic which is made from petroleum feedstocks. Kunstler calls the suburbs the greatest misallocation of resources in human history. It’s easy to see how that’s true.

I didn’t know that it was only as late as 1959 that petroleum overtook coal to be more than 50 percent of our energy use. I didn’t know that coal only became the world’s predominant energy source after 1900. Before that, we were still essentially in a wood/biofuel economy. As I wrote before, that’s pretty recent – less than three generations.

We think of the 19th century as the era of coal, but as the distinguished Canadian energy economist Vaclav Smil has pointed out, coal only reached 5% of world energy supply in 1840, and it didn’t get to 50% until about 1900.

The modern oil industry began in 1859, but it took more than a century for oil to eclipse coal as the world’s No. 1 source. “The most important historical lesson,” Dr. Smil says, is that “energy resources require extended periods of development.”

The Power Revolutions (WSJ)

Peak oil ideas made it sound like oil (specifically petroleum) was the only resource that matters to the economy, so that once oil production stops growing, the economy will collapse. That’s clearly not the case (oil is 36 percent of the world’s energy). There are lots of other fuels in the mix. However, things like fracking, tar sands, and offshore drilling clearly mean that cheap, easy-to-get oil is on the wane. Oil is cheap now because of fracking – not the tight oil itself, but rather because the fear of it is keeping prices low by the Saudis. That will change. I’m always amazed at the people who run out and buy SUVs the minute the oil price goes down. Do they expect it to be cheap forever or do they expect to drive their car for only a year? It’s also cheap because our economy is in the crapper.

Forget who the candidates are and all the campaigning and the billions of dollars spent– If oil prices are high, the economy is in recession, and the incumbent party will lose power. You can pretty much predict any presidential election by this fact alone. Two-thousand is the only one that sort-of breaks the mold, and that was such a bizarre election between the hanging chads, the voting fraud and the Supreme Court. In other words, it’s not just the economy driven by energy prices – it’s the political world too. Everything else is just meaningless fluff.

At the end of the day, whether a president presides over a good economy or a bad economy is almost entirely down to oil prices.

The other thing that strikes you is the “Groundhog Day” nature of the situation. Oil prices get high, we get worried about the environment, and there’s a great boom in alternative energy, energy efficiency, environmental impacts, worries about the economy and supply chains, and so forth. Then oil prices go down and we forget all about alternative energy and all the inherent problems with relying on a finite resource. All the progress toward getting off of oil stagnates, and people assume oil will be cheap forever. Then they get high again, and suddenly it all becomes important again, and we have to go back to square one (compare the EV-1 to Tesla, for example. Heck, Edison built an electric car!). Charles Mann had a great line along the lines of “The human propensity to see flukes of good fortune as never coming to an end,” or something like that.

Given the manipulation of oil prices, it’s hard to see natural economic factors as ever being able to do the right thing when it comes to energy. When prices get high, new supply comes online and alternatives are pursued. But then oil prices crush the economy, demand falls more in line with supply, the price falls, and the initiatives are halted. It feels like the invisible hand is attached to an idiot. Maybe this time we’ll finally get serious.

Prices are temporary conditions. Peak oil is permanent.

The drug dealer analogy of us being addicted to oil is shopworn, but it is just so accurate. It was only once we were addicted to the product that they could jack up the price, and then we HAD to pay what they demanded. But like a drug that devastates the lives of its users, when you hit rock-bottom you try to get on the twelve-step program and get your life back. Then, the dealers will lower the price to keep you addicted, and the cycle begins again. Plus, every dealer wants to be your dealer, so they need to be just a little bit cheaper than the next guy. Barring that, they will bind together with the other dealers to keep the price high and protect their “turf.” The economics of drug dealing and oil are eerily similar. I wonder if anyone’s formally studied this.

In the past each new energy source was added on to the previous ones. Now we are talking about substitution – a totally different ballgame. That is, new energy sources will replace old. That’s substitution, not expansion.

Cheap oil combined with the opening up of China drove globalization. There is no way we could build the largest moving structures ever built to transport goods if we didn’t have a fuel source cheap enough to make it worthwhile. A single ship can move 19,000 containers, enough to move 300 million tablet computers.

That oil played a role in foreign policy shouldn’t be a surprise, but looking at exactly how it led to the invasions of Afghanistan and Iraq, the civil war in Syria, the removal of Qaddafi, the propping up or removing of dictators, and the positioning of armies around the globe was still eye-opening. So much foreign policy is dictated by access to oil. So much…

I was actually unaware of the Eurodollar and how I caused the fall of Bretton Woods. As Smith illustrates, going back to the gold standard is practically impossible (sorry libertarians). I was unaware of the role that Petrodollar recycling played in the Latin American debt crisis. I was aware of how the Petrodollars funded terrorism. I’m sure readers of Dmitry Orlov were familiar with the role oil and grain prices played in the fall of the Soviet Union. Again, this made Reagan look like a genius.

What I really wanted to describe is how the oil price crisis came about and how it led directly to the rise of Neoliberalism. I also wanted to show how Jimmy Carter’s “failure” and Ronald Reagan’s “success” was based mostly on oil prices. Some people would take issue with that, but it’s hard to separate one from the other. Is it 100 percent? Maybe not, but what percentage was oil prices? Seventy? Fifty? Twenty-five? Surely it played a role.

The problem is that it made Neoliberalism look like a success. People came to believe that unions were evil, and tax cuts for the rich and corporations, deregulation, and speculation were the magic keys to prosperity. But throughout the Neoliberal reign, oil prices were either stable or crashing. When that wasn’t the case, as in 2007-2008, the system came apart. The rise of China also made Neoliberalism appear to work. But it was smoke and mirrors – cheap uneducated labor, overinvestment, state-controlled enterprises, artificially cheap currencies, entire cities built with no people in them, etc. It was a Potemkin’s village on the scale of a nation. Globalization is a Ponzi scheme.

But now Neoliberalism is literally tearing the world apart. Some major reasons:

1.) Turning the speculators loose. The oil price rise and the food price rise seem to be mainly problems of market speculations (i.e. greed and fear, always the real movers of markets, not supply and demand). This has, in turn, led to political turmoil as we saw in the Arab Spring. If speculation continues to cause price rises for essentials like food, fuel and water to pad the fortunes of speculators, expect more chaos and collapse. Even in the U.S., the actions of Enron and “Kenny-boy” lay caused serious harm to economies, not expansion. And we spent enough on the bailouts to give every unemployed person a job and every homeless person a home, with billions left over. Is this how economies should be run?

2.) The suppression of worker wages has caused massive hardship around the world. The abandonment of full employment as a policy goal has led to a worldwide unemployment crisis that is destabilizing the world. Unemployed people have nothing to lose. People with nothing to lose tend to revolt (see above). The gutting of social services and welfare safety nets has also led to poverty and desperation all around the world. It calls into question the ability of capitalism to deliver broad increases in living standards everywhere. We are clearly not seeing that. We’ve been in reverse for some time. Shouldn’t an economic system make us ALL richer, rather than provide winners and losers? If it can’t, what kind of system is it?

3.) Globalism spreads not only the wealth around, but the poverty too. Some countries, notably Western Europe, have attempted to defend their citizens, while others like the United States, did nothing to insulate its workers from third-world wages and working conditions (and even encouraged them). Rising living standards in China and India are one thing, but falling living standards in formerly wealthy countries make the rich capitalists richer, but cause anger and consternation which is easily exploited by the unscrupulous and power-hungry. This is also destabilizing. Just look at all the anger in the U.S. today searching for a scapegoat.

4.) Austerity and the straitjacketing of governments has led to wealthy, industrialized countries “undeveloping.” The United States is a nation of private affluence and public squalor, with one-third of its children living in poverty, entire cities abandoned and crumbling, urban areas too expensive for median income workers, the infrastructure of a banana republic, poor access to education and healthcare, pockets of poverty, ghettoes, etc. Greece is being gutted as an example to the West. This is leading to rise of right-wing parties in Europe, again redolent of the run-up to the Second World War.

5.) The faith in Markets to solve all problems is especially disastrous with an ongoing environmental crisis. Instead of rationing or capping, instead we get easily gamed “cap and trade” markets to reduce emissions. Nature is just “natural capital,” and every drop of water, tree leaf, and grain of sand must be assigned an owner and a price. In other words, all of nature must be subsumed into the market, because markets are the only way we can solve our problems! This is a Neoliberal idea. Look at how the United States responded to the crisis in the seventies by contrast.

6.) Debt crises have caused massive hardship around the world. As I learned, Mexico’s reputation as a haven for poverty, prostitution, drug gangs, etc. was only after the Latin American debt crisis of 1982. That, in turn, led the massive influx of Latin American refugees into the United States turning America into a Latin country overnight. Prior to 1979, places like Afghanistan, Iran, Lebanon, Egypt, Iraq, Algeria, Syria and Libya were stable, secular, relatively prosperous places (See this. And this). Now look at them. Yes, they had dictators and human rights violations. But compare it to today. Latin America has fared somewhat better, largely by finding a way to reject or bypass Neoliberalism. Africa has not fared well, either. Note that you only heard about collapse and famine after the 1980’s (remember Ethiopia?). Yes, Africa was poor before then, but it seemed to be heading in the right direction. Not any more.

7.) People from these wrecked countries are heading to the Western industrialized countries in massive waves of migration–Latin America for the United States and Canada, and the Middle East and Africa for the European Union. This has driven down wages and caused the rise of nativist parties. Everyone is heading for the lifeboats as more and more countries become failed states. There is simply not enough room for all. But rebuilding these countries would mean abandoning the Neoliberal paradigm, forgoing debt and putting into place quasi-socialist policies. Then again, the rich can always retreat to floating offshore islands (and eventually space colonies).

It’s clear that much of the money that has not been collected by governments has gone not only into speculation as opposed to productive activity, but in purchasing political representation. This has led to democracies devolving into oligarchies and a mistrust of democracy in general. The buying of politicians and the media blocks any attempts to deal with collapsing systems. We’ve seen ever greater instability and ever greater bubbles under Neoliberalism now that government has been “contained” and workers have been “disciplined.”

The answer to our problems should be clear: abandon Neoliberalism and return to the mixed economy. Stop hamstringing governments. End speculation. Tax the rich. Close offshore tax shelters. Raise tariffs. Defend domestic industries. Write down the debts. Pursue full employment policies such as a job guarantee, reduced working hours and an basic income guarantee. Distribute essential social services through the government, and let the market handle non-necessities. Regulate to deal with externalities. Impose limits on natural resource extraction. Decarbonize energy.

All of this used to be common-sense. Now it beyond the pale.

The problem is, it’s a ratchet effect. We cannot go back, because TPTB will not allow it. And since the 1970s, they learned they had to not only control the government, but the information we imbibe day after day, otherwise we would instruct our government to do something the powerful may not want. Instead, we had to be convinced that Neoliberalism is the only valid economy – hence the think tanks, talk radio, publishing mills, Fox news, etc. Any sense of common purpose or solidarity is evil “socialism.” As we learned, even “liberal” news sources are fully dedicated to defending this paradigm at all costs, even at the cost of credibility. And the funding of the political classes by the wealthy will ensure that anything that threatens the fortunes of the oligarchs will be a non-starter, even if people do see past the media rhetoric.

The change in economics swallowed the hope of the sixties. How much does it have to do with Neoliberalism, and how much with oil prices? A lot of commenters say, “Hey, the oil is gone, we just need to learn to be peasants.” They point out that American wages stopped growing in 1973, around the time domestic oil production peaked in the U.S. But I think that’s simplistic. American wages stopped growing, not everyone else’s–not what we’d expect in an energy descent scenario. Rather, I think it was the wealth transfer of the seventies, and the politics it engendered, that was the primary culprit. The oil shock opened the door for globalized Neoliberalism, and that is the primary cause of our misfortune. By using oil as an excuse to be politically passive, we remove any chance at creating an economy that works better for all and play into the hands of the powerful.

I think old economy Steve puts it best. Or shall we say, “mixed economy” Steve:

The true value of money

Posted on October 22, 2015 by Reid Mukai

Economics needs a revolution.

By David Orrell

Source: Adbusters

This sentiment has been expressed by people from the physicist turned hedge-fund manager Jean-Philippe Bouchaud (in a 2008 paper), to the Bank of England’s Andrew Haldane (in a 2014 foreword for Manchester’s student-run Post-Crash Economics), to activist groups such as Kick It Over. So what would such a revolution look like?

Perhaps the archetypal model for a scientific revolution is the quantum revolution that shocked the world at the turn of the last century. In the space of a few short years, almost everything that was known about the nature of matter was overturned. The Newtonian view of the world as a predictable machine crumbled with it.

Except, that is, in economics – which continues to base its models on quasi-Newtonian economic laws.

A peculiar feature of orthodox economics is that money is treated as an inert medium of exchange, with no special properties of its own. As a result, money is largely excluded from macroeconomic models, which is one reason the financial crisis of 2007/8 was not predicted (it involved money). In many respects, when viewed through the lens of quantum physics, money behaves a lot like matter – and acknowledging that behavior promises to do to economics what quanta did for physics.

The main insight of quantum physics is that matter is composed of entities which behave in some ways as waves and in other ways as particles. This novel insight countered the Newtonian view that billiard ball-like atoms behaved independently of each other. A beam of light, for example, is an electromagnetic wave but it is also a stream of particles known as photons. At a quantum level, matter is fundamentally dualistic: neither the particle nor the wave description is complete by itself.

The same can be said of money, which turns out to have quantum properties of its own. Money is strange stuff, when you think about it – but because it has been around for millennia we rarely do. Consider for example a U.S. dollar bill. On the one hand it represents a number – in this case the number one. On the other hand it is a physical thing which can be possessed, exchanged and above all valued (even lusted after, if there are enough of them). It therefore lives partly in the abstract world of numbers and mathematics and partly in the real world of things, people and value.

The same is true of any money object that we use for payment. Here “object” could refer either to a physical object – such as a coin – or a virtual object, such as 1.2107 bitcoin (BTC) sent from a phone. What makes such objects special is that they have a fixed, defined value in currency units.

While seeing money objects as things with a fixed monetary value might appear trivial, it turns out to have complex and contradictory properties that feed into the economy as a whole. In particular, they combine two aspects, abstract number and real world value, which are as different as waves and particles.

For example numbers are subject to mathematical laws – such as compound interest – and can grow without limits, while in the real world natural processes tend to be subject to bounds. In 1850 an American lawyer did the math and calculated that five English pennies invested at 5 percent compound interest since 0 AD would have accumulated to 32 billion spheres of pure gold, each equal in size to the Earth. This is a useful exercise for anyone who thinks that gross domestic product (GDP) can grow forever.

Numbers can be negative, as in debts, but (as the English physicist-turned-economist Frederick Soddy pointed out) there is no such thing as a negative number of objects. You might be underwater on your mortgage but you can’t own a negative house. Throughout history the frightening ability of negative debt to grow without bounds has been responsible for forcing people into economic slavery.

Numbers are hard and precise, like the particle aspect of matter. Real-world concepts such as value are diffuse and fuzzy, like the wave aspect of matter. By combining these two aspects in a single package, money objects are our contribution to the quantum universe.

The dualistic nature of money explains its frequently paradoxical behavior. In the early 2000s, cheap credit in the United States meant that even low-income people could afford their own homes. Some cashed in and sold their houses at the top of the market. For them the money was real – they could go to the bank and withdraw dollar bills. But when the credit crunch kicked in most of the new money disappeared into the ether, as if it had never existed. Money seemed to be both real and unreal at the same time – a sensation familiar to anyone who has studied quantum physics.

Just as quantum physics overturned Newtonian physics, so a reexamination of money promises to disrupt economics. The reason that critics are calling for fundamental change is that neoclassical economics has failed to provide answers to problems such as wealth inequality, financial crises and environmental degradation – which is unsurprising if it treats money as nothing more than an inert, Newtonian medium of exchange. The tendency of money to clump and accumulate with a small group of creditors, or for financial markets to be inherently unstable, or for GDP growth to be valued over the environment, becomes clearer when we acknowledge the vital, active role of money and the tension and discrepancy between numbers and the real world that drives it.

Of course, one should not underestimate the resistance of economists to adopting new ideas, however the worldwide student movement calling for change is unlikely to go away. Economics is primed for a quantum revolution of its own.

— David Orrell is a mathematician and author. His latest book, Truth or Beauty: Science and The Quest for Order, explores the role of aesthetics in science. He is currently working on a book about money.

Politics as therapy: they want us to be just sick enough not to fight back

Posted on October 11, 2015 by Reid Mukai

By Michael Richmond

Source: Transformation

On 10 October it is World Mental Health Day. I used to be outgoing, but a descent into crushing depression left me housebound. After Occupy I started asking: how does social environment shape our psychology?

I used to buy the Sun newspaper. Not just to fit in with mates at secondary school but right into my first year at university. I knew there was something to be ashamed of in this filthy habit, armed as I was with my oft-deployed excuse: “I only buy it for the crossword and the football transfers.”

This was true. I never read the news. In general, I lived a remarkably apolitical existence. This was some feat considering I have a Jewish communist great grandfather, socialist grandparents, a union lawyer dad and an older brother who went through his Che Guevara phase at around fifteen.

I dropped out of university in early 2007, five months before Northern Rock bank hit the skids. Who knows whether the student experience would have politicised me? Perhaps the process would have been helped along by the backdrop of the approaching financial crisis?

But something else politicised me instead: a crushing, rapid descent into depression, social wilderness and personal crisis.

I experienced anxiety and depression as a hostile takeover of my life and sense of self. I went from being outgoing and sociable to being unable to talk to people or leave the house. This was within the space of a few days. There was no discernible cause.

It was quickly clear that I couldn’t continue at university and so I moved back into my parents’ house, where I have lived ever since.

Several years of isolation, suicidal thoughts and internal struggle followed. I remained unable to escape the confines of my bullying psyche, let alone my house.

Unable to work or study, have friendships, or experience joy, reading became my true love, my source of meaning, my attempt to make sense of what had happened to me. I obsessively read classic literature, history, philosophy, political economy – I had felt a profound sense of loss at not being able to finish university. I became determined that I would instead educate myself.

But an impenetrable sense of terror and despair continued to accompany me through my every waking and sleeping hour. I began to work my way through an impressive list of psychotropic medications and psychotherapies and eventually attended an NHS psychiatric day hospital for six months.

A “service user” within the psychiatric system gains a unique insight and practical education in state discipline as well as the lengths gone to in enforcing normativity. Having grown up white, straight, male and middle class, I was privileged to rarely, if ever, be told that I had to be something other than what I was.

I seldom encountered gross injustice or violence, blatant discrimination or the kind of treatment faced from the earliest ages if you happen to be a person of colour, don’t fit a gender binary or adhere to accepted ideals of sexual behaviour.

Apart from being a non-religious Jew and encountering minimal levels of playground anti-Semitism, this was the first time I found myself in a situation of social and political ostracism (as well as a self-ostracism that proved just as powerful). I discovered for myself that the experience of the personal deeply informs the political.

Leaving the psychiatric day hospital to instead attend the asylum of Occupy the London Stock Exchange at St Paul’s Cathedral was in many ways a descent into further madness. Many “occupiers” were well acquainted with psychiatric services and medications – as well as using drugs not sanctioned by the state, but often taken for similar reasons.

Chaotic, naïve, and ultimately politically problematic and ineffectual, the initial occupied space did nevertheless open up the possibility for social and political interaction that is elsewhere absent from society.

I felt that I was in crisis, but also that the crisis was much bigger than just me. Getting involved in political praxis seemed to be the best way to channel what I was experiencing.

There is a lot to be said for the practice of “politics as therapy.”

The personal account or “journey” format often proves insufficient when attempting to understand what we do and why we do it. An analysis of political subjectivity is crucial. Shifts in capitalist expansion, social environment and class composition, technological development and the onset of crises tend to precipitate political transformation on an individual and collective basis.

The advent of the printing press or the collapse of the automotive industry in mid-west America, for example, are not external factors to people’s lives or isolated moments in history. Indeed, any such upheaval is bound to lead to transformative changes in the lives and political ideation of those experiencing it.

Our social environment shapes our psychology. We must consider how the policy, ideology and debate that surrounds “mental health” or madness is framed.

The individualisation of suffering is key to the prevailing ideology and discourse surrounding mental illness. This will often focus on a supposed misfiring of brain chemicals, a “cure” to which can be found in the form of pharmaceuticals – often prescribed by your GP before any contact with mental health services.

Attention may also turn to an individual’s lack of positive attitude, but this problem can be “fixed” by a six-week course of cognitive behavioural therapy. So much human suffering is pathologised and medicated when it is either “natural” (i.e grief or the general variety of mental experience) or is directly or indirectly linked to social, political and economic factors that remain absent from debate, let alone actively contested on this terrain.

Psychologist and author Bruce E Levine suggests that much of today’s intervention under the auspices of “mental health” is all too political.

“What better way to maintain the status quo,” Levine asks, “than to view inattention, anger, anxiety, and depression as biochemical problems of those who are mentally ill rather than normal reactions to an increasingly authoritarian society?”

He also argues that many potential activists and “natural anti-authoritarians” are prevented from opposing power: “Some activists lament how few anti-authoritarians there appear to be in the US. One reason could be that many natural anti-authoritarians are now psychopathologised and medicated before they achieve political consciousness of society’s most oppressive authorities.”

The historical origins of madness within western culture and how it became increasingly medicalised should not be forgotten. Michel Foucault exposed how the origins of “confinement” of the “insane” in asylums and workhouses were an integral part of the violent replacement of the feudal commons way of life with capitalist work discipline during the 16th and 17th centuries.

This process is in keeping with continual “primitive accumulation” akin to and contemporary with the conquest of the “New World” and the persecution of heretics and witches. Their land and means of reproduction were stolen and appropriated, while authorities continually oppressed and attempted to proletarianise them.

Initially, the “Great Confinement” saw the imprisonment of the old, the unemployed, the “criminal”, the “insane.”

As Foucault explains: “Before having the medical meaning we give it, or that at least we like to suppose it has, confinement was required by something quite different from any concern with curing the sick. What made it necessary was an imperative of labour. Our philanthropy prefers to recognise the signs of a benevolence toward sickness where there is only a condemnation of idleness.”

The conflation of pejoratives like lazy, sick, unemployed, idle are more than familiar to us in today’s discourse surrounding welfare benefits and the imperatives of labour. And it is not just the DWP and Atos who pressure people back into work, NHS psychiatric services also seem to believe that it is work that sets you free.

The capitalist class would like us to be just sick enough not to fight back, but not so sick that we cannot work. The challenge for us is to find ways of organising and helping each other so that we can find adequate levels of social reproduction, care and support to give us a platform to engage in the therapy of class struggle.

Upside down economics of debt, poverty, unemployment: Ready to seize solutions now, or do you require more pain?

Posted on September 1, 2015 by Reid Mukai

By Carl Herman

Source: The Daily Censored

“If people were really self-interested, they would stop trying to be individualistic.” – John B. Cobb, founder of Seizing an Alternative conference (and here, videos here)

Economic Hitman John Perkins’ 2-minutes on today’s neo-colonialism capitalism:

Demonocracy’s 2-minutes on what the US national debt looks like if shown in actual amounts of $100 bills:

Earth economics is upside down.

Accelerating technology can and should provide:

more personal freedom from labor,
more beauty in infrastructure and nature,
greater joy in our freedom to create and explore our beautiful, powerful, and diverse virtues (something like “resource-based economics” as researched by The Venus Project).

We know what we have is in contrived Orwellian opposition of what leadership should create. We know that what we receive is literal criminal fraud:

increasing national and total debts from having what we use for money created as debt owed to private banks,
decaying infrastructure getting uglier from “deferred maintenance,”
real unemployment near 25% with most families demanding both parents work longer and longer hours,
real inflation well above official reports,
US poverty of 20% among children,
72% of California students in schools with over half the children classified as “socio-economically disadvantaged,”
a .01% oligarch class that “legally” hide $20 to $30 trillion in offshore tax havens,
a rigged-casino economy designed for “peak inequality,”
“too big to fail” banks demand public subsidies (so-called “bailouts”) while gambling with over $200 TRILLION in derivatives,
these “too big to fail/jail” banks deriving most of their income from subsidies and apparent market manipulations,
ongoing intentional poverty that kills ~20,000 children world-wide in gruesome slow-motion daily ($1 to $3 trillion over ten years would end poverty while reducing population growth rates),
connected to money are unlawful and lie-began wars; crimes that have to be “covered” with Orwellian lies of corporate media.

I could go on to literally ~100 areas of crucial concern.

The first challenge for the 99.99% is to trust their own Emperor’s New Clothes observations that Earth is truly in this tragic-comedy rather than listen to the .01%’s lies attempting to cover naked facts anyone can see.

Please understand that I represent likely hundreds of thousands of professionals making factual claims with objective evidence anyone with a high school-level of education can verify. For example, the June 2015 Seizing an Alternative conference (and here, videos here) at the Claremont Colleges had hundreds of professionals presenting data and solutions in over 80 areas of speciality. My paper and videos for this conference is here.

The purpose of education since the “Age of Enlightenment” is to present facts for public verification, and to seize the victory of refuting lies by would-be dictators, especially when such lies are obvious and of crucial public importance.

The path forward as we build a critical mass of humans recognizing the Emperor’s New Clothes truth is to demand arrests and solutions, obviously:

ARRESTS: the first responsible action upon recognizing massive crimes that annually kill millions, harm billions, and loot trillions is to demand that law enforcement and military enact arrests of criminal leaders to stop the crimes and begin unwinding the truth of what happened in Earth’s tragic-comedy (four-part article series with videos on arrests as the obvious citizen response).
SOLUTIONS: the .01% with corporate media have suppressed solutions documented beginning with Benjamin Franklin how government can abundantly operate without taxes: monetary and credit reform allow the public to have near-instant prosperity: full-employment, zero public deficits and debt, the best infrastructure we can imagine, falling prices, and release of public TRILLIONS held in “rainy day” accounts. Full documentation here.

Humanity’s choices:

Ongoing .01% Orwellian, upside-down, tragic-comic, Emperor’s New Clothes crimes with all the pain, fear, harm, death, debt, poverty, enslavement, crime, destruction, and despair.
Arrests to stop the crimes of the present, and ready-to-start solutions to build a brighter future.

Be your brightest light as the person you’ve always wanted to be.

Former World Bank economist Herman Daly and co-author John B. Cobb of For the Common Good discuss our condition and pathways forward in this 40-minute interview:

Carl Herman is a National Board Certified Teacher of US Government, Economics, and History; also credentialed in Mathematics. He worked with both US political parties over 18 years and two UN Summits with the citizen’s lobby, RESULTS, for US domestic and foreign policy to end poverty. He can be reached at Carl_Herman@post.harvard.edu

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Politics as therapy: they want us to be just sick enough not to fight back