Techno-Financial Capital & Genocide of the Poorest of the Poor

imagesBy Dr. James Petras

Source: Boiling Frogs Post

Total war from above and the outside breeds total war from the inside and below

Today, the ‘poorest of the poor’ are superfluous to empire and thus the policy of genocide. The current world war between the classes has become a war between exterminators and those who would fight to survive!

‘The war and its results have turned Yemen back a hundred years, due to the destruction of infrastructure . . . especially in the provinces of Oden, Dhalea and Taiz.’- Izzedine al-Asbali, Yemeni Human Rights Minister

‘Yemen is devastated. There are no roads, water or electricity. Nobody’s left but thieves.’- A resident of Sana (Yemen)

The Euro-American and Japanese ruling classes, as well as their collaborators in the Afro-Asian and Latin American countries, have accumulated vast profit. This has occurred through a complex stratified system re-concentrating the world’s wealth through: 1. The exploitation of labor in the First World (North America and Western Europe); 2. super-exploitation of labor in the Second World (China, ex-USSR); 3. dispossession of peasants, native communities and urban dwellers to grab resources, land and real estate in the Third World; and 4. wars of genocide against the poorest of the poor in the ‘Fourth World’. Besides all the forms of brutal exploitation and dispossession, which enrich the Euro-US ruling classes, by far the most sinister and threatening to humanity is the concerted worldwide effort to literally exterminate the poorest-of-the poor, the hundreds of millions of people no longer essential for the accumulation and concentration of imperial capital today.

This essay will begin by mapping the genocidal wars against ‘the wretched of the earth’, identifying the geography of genocide, the countries and subjects under attack, and the trajectory, which has been chosen and executed by the leaders of the Euro-American regimes.

Then we will examine the reason for genocide within the dynamics and forms of contemporary capitalism. In particular, we will develop the genocide hypothesis: that imperial genocide of the poorest of the poor is a deliberate policy to reduce the growing surplus labor, which is no longer needed or wanted for wealth accumulation but is increasingly feared as a potential political threat.

In the last section, we will discuss how the ‘wretched of the earth’ are responding to this policy of imperial genocide and what is to be done.

Mapping Genocide Against the Poorest of the Poor

It is no coincidence that the most violent assaults and invasions by the Euro-American powers have taken place against the poorest countries in each region of the world. In the Western hemisphere, the Euro-US regimes have repeatedly invaded the absolutely poorest country, Haiti, overthrowing the popularly elected Aristide government, decimating the population via a cholera epidemic spread by UN mercenary ‘peace-keepers’, killing tens of thousands of poor Haitians and rounding up thousands of protestors. The occupation continues. Honduras, the second poorest country in the region, experienced a US-backed coup d’état deposed their recently elected president and imposed a terrorist puppet regime, which regularly assassinates dissidents and landless rural workers. Peasants are dispossessed; the economy and society are in shambles with tens of thousands of Hondurans (especially children) fleeing the violence.

Today, the Euro-American powers actively support the absolutist regime of Saudi Arabia as it bombs and slaughters thousands of Yemeni civilians and resistance fighters. Yemen is the poorest country in the Gulf region.

In South Asia, the US invaded and occupied Afghanistan; its coalition of puppets and NATO allies have massacred and displaced millions of poor farmers and civilians. Afghanistan is the poorest of the poor countries in the region.

In Africa, the Euro-American powers and their local collaborators have invaded, bombed and occupied Somalia, Chad and Mali – among the poorest of sub-Sahara countries.

After the US-NATO campaign of destruction against Libya, 1.5 million sub-Saharan Africans and black citizens of Libya lost their stable employment and became the victims of ethnic slaughter. Their attempts to escape the violence and starvation by fleeing to Europe are blocked by the leading powers (the same powers that destroyed the Libyan economy and society). Those, who do not drown in their flight, are detained and returned to their devastated countries and early deaths.

In Western Europe, millions of Greeks, Spaniards and Portuguese, inhabiting the poorest countries in the region, have faced massive job losses, widespread impoverishment and spiraling suicides – all induced by austerity programs designed to pillage their economies and enrich their Euro-US creditors.

In the United States, 1.5 million black (mostly male) Americans, are ‘missing’ – products of early death, industrial-scale incarceration and police assassinations. American Indian communities are subject to depredations and early death from the policies of the Federal and State governments. Their lands have been handed over to mining (and now fracking) to serve the interests of the mining and agro-business elite. Throughout the US Latino agricultural workers are increasingly viewed as ‘expendable’ with technology and the effects of global climate change (such as the severe drought in California) depriving them of livelihood.

In the Levant, Palestinians, now the poorest of the poor and the most disenfranchised, face continued Israeli land grabs, pillage and violence in the West Bank and genocidal attacks in Gaza. Iraq and Syria have experienced millions of deaths and displacements, reducing previously prosperous, educated and sophisticated multi-ethnic populations into impoverished, uprooted and desperate people deliberately driven backwards to tribal loyalties.

Why Imperialism ‘Genocides the Poorest of the Poor’

With the exception of Iraq and Syria, all of the violated countries have been poor in resources and markets, and possess large unskilled labor. The people are targeted and savaged because they no longer serve as ‘labor reserves’ – they are now excess-surplus labor – in Nazi racial hygiene terminology, they have become ‘useless mouths to feed’. This has intensified as crisis engulfs the West and the least productive sectors of capitalism, finance, real estate and insurance (FIRE), have become the leading sectors of capital. ‘Cheap labor’ is less needed, least of all overseas labor from conflictual regions.

The ‘poorest of the poor’ countries under attack lack rich resources ripe for plunder; their populations do not exist among the priorities of the multi-national bankers – except when seen as ‘obstacles’. In the colonial past, sectors of these populations would have been recruited by imperial countries to submit, obey and serve as imperial mercenaries or coolie labor. They would have been transported and employed by empire for ‘dirty’, dangerous and poorly paid jobs in other colonized countries – like the millions of Indians scattered throughout the former British Empire. Today, such coolies have no value.

The genocidal nature of the wars against the ‘poorest of the poor’ is best demonstrated by the actual targets and primary victims of these wars: Millions of civilians, families, women, children and heads of households have suffered the worst. These ‘targets’ represent the most stable and essential elements responsible for family reproduction and security. The ‘poorest of the poor’ communities are being destroyed. Genocidal bombing has overwhelmingly targeted the essential factors for survival: cohesive households, communal settings, subsistence food growing regions and access to clean water. Therefore, it should come as no surprise that marriage ceremonies and traditional social gatherings have been ‘mistaken targets’ of missiles and drone strikes. Despite the denials from the White House, the geographic extent and nauseating number of such attacks demonstrate that according to the ‘genocide hypothesis’ there is ‘nowhere to hide’: The targeted populations will have no marriage celebrations, no social life, no increase in children among the poorest of the poor, no protection for the elders, no social fabric and no communal organizations – there will be no survival networks left for the superfluous of empire.

The ‘genocide hypothesis’ underlies the practice of ‘total war’. The practice includes massive attacks on non-military targets (‘Shock and Awe’) and the use of high tech weaponry to target collectives of the poorest of the poor – repeatedly, over long periods of time and wide geographic regions.

If, as the apologists of genocidal wars claim, the bombings of weddings and slaughter of school children are ‘collateral’ in the ‘Global War on Terror’ why are they happening everywhere in the fourth world and virtually everyday?

The genocide hypothesis best explains the data. Even the terminology and claims made by imperialist experts regarding their weapons systems support the genocide hypothesis. These weapons, we are told, are ‘intelligent, precise and highly accurate’ in targeting and destroying ‘the enemy’. By their own admission, then, the poorest of the poor have become ‘the enemy’, as imperial weapons makers support ‘intelligent’ genocide with ‘precision’.

When liberals and leftists criticize how imperial drone strikes kill civilians, instead of ‘armed terrorists’, they are missing the essential point of the policy. The prime purpose of the wars and the imperial weapons of mass destruction is to kill the largest number of the very poorest in the shortest time.

No member of the financial-high tech capitalist class has ever complained about the mass killing of the ‘poorest of the poor’ anywhere or at any time because the victims are, for the purpose of accumulating imperial profit and concentrating wealth superfluous. The poorest don’t figure into the formulae of profit and productivity; they don’t ‘make or take’ markets. On the other hand, their continued existence is a potential liability. They are aesthetically unappealing on the outskirts of luxury resorts. To the rich, they represent a desperate criminal element and they may pose a real or imagined ‘terrorist’ threat. For these reasons, the rich would ‘prefer’ that they would quietly cease to exist, or if the warlords have to dispose of them, the world will be a safer and more attractive place to accumulate wealth. ‘Let them kill each other, as they have done for millennia’, the empire piously opines and the bankers and their high tech allies can use their military and mercenaries without soiling their own hands. The elite ignore the mass immiseration while the militarists bomb ‘the problem’ out of existence.

Today genocide occurs in once vibrant living and working communities, not hidden in ‘concentration camps’. The secret ovens and gas chambers have been replaced by an ‘open range’ of incendiary weapons that end lives, burn neighborhoods and workshops, devastate livestock and crops. Those who survive the bombing are starved, enclosed, malnourished and inflicted with disease. Eminent doctors tell us that the misery is ‘self-inflicted’ and that the poorest of the poor are ignorant and lack healthy habits. Recurrent epidemics from HIV to cholera to Ebola are quintessential ‘4th world diseases’. Even though the Caribbean had not seen cholera for over a century, its introduction into Haiti via the bowels of imperial mercenary troops (UN peacekeepers from Nepal) was blamed on the Haitians’ lack of access to clean water! Not since the small pox blankets passed out by the US Army to freezing Native Americans in their concentration camps of the 19th century have we heard such apologists for genocide!

The truth about genocide is that all this is known, repeatedly documented and forgotten. White workers in the First World cannot even register these ‘facts’ under their own noses, let alone express any form of solidarity. Imperial genocide, committed by proactive militarists and ‘passive’ rich elites, are no secret even if they deny their complicity. The key word here is ‘mission’. ‘Mission Accomplished’ was the celebratory banner over the total destruction of Iraq. The warlords claim rewards for successfully completing ‘the mission’. Yemenis are dying under US-supplied Saudi bombs; Somalis are scattered in tens of thousands of tents to the four corners of the earth; Haitians continue to enjoy the ‘gift of cholera’ from UN ‘peacekeepers’ and rot in massive open air prison-slums – their leaders imprisoned or assassinated.

The Poorest of the Poor Respond

In the face of genocide and their irrelevance to the profit motive of modern high tech and finance capital, the poorest of the poor have chosen multiple responses: (1) Mass out-migration, preferable to the First World, where they won’t be bombed, raped or starved as they had been at ‘home’; (2) Internal migration to the cities, under the illusion of an ‘urban safe haven’ when in fact their concentration in slums makes it easier for the bombers; (3) return to the countryside and subsistence farming or the mountains and subsistence herding, but the missiles and drones relentlessly follow them; (4) mass flight to a neighboring country where the local gendarmes will ‘herd’ them into camps to rot and (5) finally resistance. Resistance takes various forms: There are spontaneous upheavals when the scope of abuse exceeds all endurance. This form involves attacking the local collaborators and gendarmes and authorities and sacking food warehouses. Such action burns briefly and dies (many times literally). Some choose to join armed resistance bands, including gangs of brigands, political ethno-religious rivals and terrorists who retaliate against authors of their genocide and its collaborators with their own version of justice and material and celestial rewards.

Total war from above and the outside breeds total war from the inside and below. The rebellion of the ‘wretched of the earth’ in the 21st century is far different from that portrayed by Franz Fanon in the middle of the last century. Fanon described a revolt against colonialism and neo-colonialism. Today the revolt is against deracination and genocide. During colonialism, the ‘wretched’ needed to be subdued to better exploit their labor and resources. Today, the ‘poorest of the poor’ are superfluous to empire and thus the policy of genocide. The current world war between the classes has become a war between exterminators and those who would fight to survive!

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Professor James Petras, Boiling Frogs Post contributing analyst, is the author of more than 62 books published in 29 languages, and over 600 articles in professional journals, including the American Sociological Review, British Journal of Sociology, Social Research, and Journal of Peasant Studies. He has a long history of commitment to social justice, working in particular with the Brazilian Landless Workers Movement for 11 years. He writes a monthly column for the Mexican newspaper, La Jornada, and previously, for the Spanish daily, El Mundo. Dr. Petras received his B.A. from Boston University and Ph.D. from the University of California at Berkeley. You can visit his website here.

Overcoming the American Dream

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By Frank Castro

Source: The Hampton Institute

“Anyone who has ever struggled with poverty knows how extremely expensive it is to be poor.” – James Baldwin
My house sat tucked a mile deep, wrapped in 500 acres of sprawling oaks and towering pines. Dense thickets crisscrossed the land like formidable barricades protecting masses of forests from the intrusions of bored, yet curious children. They would leave you picking daggers from your sides and forearms if you journeyed too far. I grew up in a remote place called Farmhaven, the midway point between Canton and Carthage, Mississippi. Driving through you would never know you were somewhere with a name. Farmhaven is one of those places marked by only an intersection and a road that always goes somewhere else. It is here though, with my father and my brother, in the heart of the South, that I learned the most important lesson life could teach me.

When I was very young the world was a place of limitless potential. Like a naïve summer breeze still clinging to the fantasy that winter will never come, I was no different than most children who believe the world is theirs. You do not have to be rich to dream such dreams. A swift run and leap off the South end of our porch, where the ground was soft and the magnolia leaves puddled, was all it took. With my arms stretched wide I pretended to be a fighter pilot leaving the deck of an aircraft carrier. I never really knew or cared what fighter pilots do; I just wanted to see the world through a bird’s eyes. It was my own American Dream. And the further from the porch I landed, the more I believed I would someday soar.

It’s probably not an unfamiliar story. After all, in children imagination abounds. About this time we start being told to follow our dreams, as if the world were built in such a way that the realization of all our dreams is possible. Certainly that’s what I believed, that people just out to make the imagined real. Life is not without a cruel sense of irony though, and elders rarely mention to adolescents the kind of world in which we live. They shield us from it, understandably not wanting to damage the authenticity and fragility of our youthful ambition. But reality will come knocking. It always does. It will come to tell us that the world has been built in such a way that our dreams will be withheld from us, that the joys of making them real cannot be ours, but rather, with and atop our backs, they must be forfeited to erect someone else’s.

This is the price of poverty.
Knock, Knock

“Capitalism is cruel and heartless and tears people apart, mentally, physically and socially.” - Susan Rosenthal

My father taught me the value of work. For all his faults, I could never question how hard he labored to provide for my brother and me, or how determined he was to instill in us a love for building with our own hands. He tried to teach us how to work the land. We plowed and planted. We built homes for our chickens, turkeys, and ducks. We constructed wooden and wire fences for rotating our goats and horses from one field to another. During the winter months when our grazing fields turned to tundra, I hoisted buckets of feed to the troughs I had built. My brother and I became so proficient with our hands that often my father would drop us off in the woods with supplies and expect a job to be done when he returned with lunch.

But neither our farm nor all the work we put into it was ever what kept a roof over our heads. Even after the fruits of our labor yielded plates for our table, we still needed money. I knew this all too well, even as a seven year old. My room was in the middle of our house. You could not get from the kitchen to the living room without first walking through it. Often a door was left cracked open, not intentionally, but because door frames shift with age and require a firm snug to be pulled completely shut. Through the years while I had a step-mother I heard my father and her argue about bills when the doors where ajar. Always more bills. They both worked in addition to our farm. She worked at a cigarette store. His job always changed. And still it was never enough. Sometimes they got loud. Her voice screeched. His slurred. And mine would make lists in my head of everything I was going to do the next day to make it all better.

I began doing my own laundry about that time because I wanted my step-mother to stay. My child’s mind thought it would make a difference. She left after a few more years though, and when it happened I really could not blame her. My father had begun turning to his bottles more often than he turned to her. When he got drunk enough one night to put a shotgun to my brother’s head, she lost all composure. Refrigerator doors flung open. Voices thundered. Walls shook. Glass bottles clanked and flew further off the porch than I ever had, exploding all over the lawn - just like my family, exploding. My screams were equal only to my tears. Every little list I had made in my head was useless. The gun landed in the yard too after my step-mother snatched it. My brother and I spent that night in the shadow of two people we loved parting ways forever. Soon we lost the farm… and our father too.

I never soared into those magnolia leaves again. In the years to come dreams of a family and a home where I belonged replaced all desire to fly.

Not till much later did I realize that nothing I did then would have made a significant difference. Neither my brother nor I held fault for our poverty and, despite his drinking, it was not entirely my father’s fault either. Addiction, I learned, is most often endemic of a society that generates addicts. Something bigger loomed, something far more pervasive and far-reaching than the lives of a few backwoods Mississippians. Reflecting on how expensive poverty had been for my family, asking why I was poor and why were we ripped apart, I found myself on an inescapable trajectory to discover the origins of inequality.
Their Gluttony Is Our Starvation

“The class which has the power to rob upon a large scale has also the power to control the government and legalize their robbery.” - Eugene V. Debs

My family’s farm was bought by a group of wealthy men who wanted a hunting resort. For the majority of the year our old home sits empty and rotting. It is a reminder that in the halls of country clubs and on the decks of overpriced yachts, poverty is, in the most acute sense of the word, the abundant currency of the rich. Their very existence is predicated on the existence of the poor.

This is not a fact we like to grapple with in America. Here everybody believes they can get rich. We believe the realization of ALL of our dreams is possible. We call this belief the American Dream, and it has been incredibly successful at stifling plausible attempts at equality outside the capitalist framework. To paraphrase John Steinbeck, socialism never took root in America because the poor see themselves not as an exploited proletariat but as temporarily embarrassed millionaires. It is the worst sort of fabrication because it makes us believe the preposterous - my family could have our house, our farm, a decent living with ample food, and an environment where addiction would stymy, while simultaneously rich folks could use it all to shoot animals for sport.

If it sounds ridiculous, it’s because it is.

Under capitalism one party was always going to lose, and generally the party which loses is the one with significantly less money. Our socioeconomic realities are structured this way. “Losers” are a necessity for capitalism’s survival. My family’s misfortune was a microcosm of structured events that play out against billions of poor people in orchestrated symphony every day. They (we) find ourselves in battles with people, organizations, and nations who have enormous financial capabilities, and therefore power, and because our global political system was built around empowering the moneyed class, before the battle ever starts our circumstances are engineered for defeat. Scaled up or down, this predisposition between those with power and those without is consistent. It is why my family lacked the financial agency over our lives to survive. But it is also why entire poor communities are displaced and gentrified by wealthy developers, or entire swaths of the planet are exploited by wealthy nations and their corporations. Where ever we are, our struggles are connected.

The American Dream then has at least two primary functions. Its first is to generate a mythology around itself which can effectively negate the reality that within capitalism not everybody can realize their dreams, that there must be an oppressed class. Such a mythology atomizes people from collective struggle. It induces a form of hyper individualism often seen in the “Boot-Strap Myth,” or the idea that anybody of little means, with hard work and determination, can lift themselves to the highest rungs of bourgeoisie society (the richest of the rich). By focusing on individual stories of capitalist success, the Bill Gates and Sam Waltons of the world, the vast poverty and suffering required for the emergence of massive fortunes is left out of the picture. One can point to Gates and believe their own ascendance is possible without understanding its possibility is predicated on the systematic exploitation of tens of thousands of workers in mines and factories across the globe. And more importantly, focus on the few success stories of the super-rich invisibilizes the structure which keeps wealth within their hands at the direct expense of the poor and makes it beyond examination or reproach.

A second primary function of the American Dream is to facilitate an overpowering sense of entitlement through exploitive competition. It cleaves us from cooperative modes of thinking and existing by constantly pitting us against each other. Through competing with fellow human beings for the necessities of life - work, housing, education, affection, nourishment, social belonging, etc. - an individual is conditioned to accept that competition is the natural state of human existence, and therefore competition necessitates winners and losers. Here, belief of capitalist mythology graduates into acceptance of capitalist power structures, and then finally into the endorsement and full-fledged participation in them. The latter is crucial, for in order to amass a huge fortune a person has to endorse a sort self-maximizing choice which, in their minds, justifies widespread exploitation. At this point it is believed that “losers” (the exploited) are inevitable, thus the more losers, or the greater number of exploited, the richer (and fewer) the winners. If you play the game ruthlessly enough to win, or even thrive, the logic follows that you are entitled to all the rewards and privileges expropriated from the oppressed.

With little doubt, I imagine the men who bought our farm thought nothing of it. In their minds having the money for it was the only requisite needed, and since they had played by the rules of capitalism well enough to be rewarded with the money needed to purchase it, they were “entitled” to it. But it was never their home. They had never toiled in the fields for crops. They had never spent a birthday or Christmas Eve in the house. They had never fished the ponds. They had never run around the yard filling the trees with laughter, or fed the hummingbirds from the clotheslines. They had never made peace with the bees that burrowed into the oak joists beneath the porch. They had never labored with an axe to stock firewood or climbed beneath the house and wrapped the pipes for winter. They knew nothing of the land or the house but its acreage and price. And that was enough, because the memories of children don’t fetch power when money talks.
Poverty Is a Weapon of Mass Destruction

“You cannot call a society which has 3.5 million homeless and 18.5 million vacant homes civil. That’s violent and morally bankrupt.” - Frank Castro

Poverty is a weapon of mass destruction. We just do not see it that way because we have a very limited understanding of what violence looks like. Statistics paint a broad picture, like the fact that 7.7 million people die of hunger every year (21,000 a day), or the fact that 3.5 Americans remain homeless despite 18.5 million vacant homes; but unless we know those individuals’ stories, and they resonate with us in some way, a culture of competition and entitlement keeps us preoccupied with trying to realize our own ambitions - or resolve our own problems. Whatever the reason, often we are concerned more with ourselves than our collective struggle.

Myths like the American Dream condition us to accept that an elite minority profiting off widespread misery is the way of the world. But remember, the hungry don’t choose to starve, and few houseless people choose homelessness. They are starved and put on the streets by a system which structurally denies them access to food and shelter. If we are to get a realistic picture of how destructive global capitalism is, it requires a broader and deeper understanding of violence.

In 2013, Peter Joseph tried reframing the parameters of violence:

“If I put a gun to someone’s head, say, a 30-year-old healthy male, pull the trigger, and kill him, assuming an average life expectancy of, say, 84, you can argue that possibly 54 years of life [were] stolen from that person in a direct act of violence.
However, if a person is born into poverty in the midst of an abundant society where it is statistically proven that it would hurt no one to facilitate meeting the basic needs of that person and yet they die at the age of 30 due to heart disease, which has been found to statistically relate to those who endure the stress and effects of low socioeconomic status, is that death, the removal of those 54 years once again, an act of violence? And the answer is “Yes, it is.” You see, our legal system has conditioned us to think that violence is a direct behavioral act. The truth is that violence is a process, not an act, and it can take many forms. You cannot separate any outcome from the system by which it is oriented.”

***Distributed equally, the grains produced throughout the world would provide each person 3,600 calories per day . The average person requires 2,000 calories a day to maintain a healthy diet.

If we can understand the scenario Peter explains as a process of violence multiplied by millions of starving and homeless people, then little more evidence is needed to indict and convict capitalism as the sadistic, murderous, and megalomaniacal system it is. Contrary to what the Boot Straps Myth and the American Dream tell us, poverty sits infinitely more on the shoulders of structures we are born into than it does personal choice, ambition, or determination. If more understood this, perhaps then finally the lie that billions like me were born into poverty because our parents were lazy, untalented, or lack the ambition to succeed, could die.
Dream Differently

“You have to act as if it were possible to radically transform the world. And you have to do it all the time.” - Angela Davis

When poverty consumed my family it destroyed any understanding of unity I had. To this day my dream remains to rediscover what family means for me, what it will look and feel like; but through the pain and the loss this much has become clear: There is no room left for “America” in my dreams. I imagine a world where families are no longer faced with the looming pistol of starvation and homelessness. No borders, rules, or regulations will rip our homes from us. No person or institution will dangle over us the future we strive toward like a tree that grows inches with every stretch for fruit. Instead we will live in cooperation with each other, a cooperation which builds beyond blood and yields families the breadth of communities. I have survived this long by doing what most people with dreams do - by continuing to live every day to make them reality. And while I struggle every day to keep mine alive, I am inspired by the building happening all around me, and by the friends who have been my family.

My story is only one of billions across the globe though - one among a sea of poverty’s victims. Ensuring billions more are not to follow suit requires shedding America’s myths. When we tell children to follow their dreams without empowering them to envision a world beyond global capitalism, and beyond America, we limit them to the possibilities afforded through oppression. We preclude the possibility of starting our lives with visions of a world that centers liberation, cooperation, love, and justice.

As Wolfi Landstreicher once said, “If one loves life, if one wants to expand and flourish, it is absolutely necessary to free desire from the channels to constrain it, to let it flood our minds and hearts with passion that sparks the wildest dreams. Then one must grasp these dreams and from them hone a weapon with which to attack this reality, a passionate rebellious reason capable of formulating projects aimed at the destruction of that which exists and the realization of our most marvelous desires. For those of us who want to make our lives our own, anything less would be unrealistic.”

To us then has fallen the challenge of taking back the power of imagination, of dreaming beyond ourselves and beyond America.

Walmart Admits: ‘Our Profits’ Depend on ‘Their Poverty’

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By Lauren McCauley

Originally posted at CommonDreams.org

Although a notorious recipient of “corporate welfare,” Walmart has now admitted that their massive profits also depend on the funding of food stamps and other public assistance programs.

In their annual report, filed with the Security and Exchange Commission last week, the retail giant lists factors that could potentially harm future profitability. Listed among items such as “economic conditions” and “consumer confidence,” the company writes that changes in taxpayer-funded public assistance programs are also a major threat to their bottom line.

The company writes:

Our business operations are subject to numerous risks, factors and uncertainties, domestically and internationally, which are outside our control … These factors include … changes in the amount of payments made under the Supplement[al] Nutrition Assistance Plan and other public assistance plans, changes in the eligibility requirements of public assistance plans …

Walmart, the nation’s largest private employer, is notorious for paying poverty wages and coaching employees to take advantage of social programs. In many states, Walmart employees are the largest group of Medicaid recipients.

However, this report is the first public acknowledgement of the chain’s reliance on the funding of these programs to sustain a profit.

According to Stacy Mitchell, senior researcher with the Institute for Local Self-Reliance, the irony of their admission is that Walmart “is the company that has done, perhaps, more than any other corporation to push people into poverty.”

Citing a Penn State study, Mitchell told Common Dreams that research has proven that “when Walmart opens a store, poverty rates are negatively impacted” and that the more stores that have opened in a particular county, the worse it is. “This is a company that everywhere it goes it creates poverty.”

In addition to their own worker’s low wages, Mitchell explains that Walmart, because of their enormous size and market power, have “held down wages for the whole sector.”

As a retailer that specifically targets a low-income demographic, Mitchell adds that the “insidious genius” of their business model is that “they have so squeezed American workers […] many feel that their only choice is to shop at Walmart.”

The International Business Times reports:

Prior to the earnings report, Walmart Chief Financial Officer Charles Holley said the company didn’t anticipate how much the end to such programs as the unemployment benefits extension would affect it. Specifically, reductions to the Supplemental Nutrition Assistance Program that went into effect on Nov. 1, the first day of the company’s fourth quarter, pose a potential concern. The cuts led to a between $1 and $36 reduction in SNAP benefits per household, or up to $460 a year. Congress is debating reinstating the extension to the program and making the benefits retroactive to Nov. 1, something Walmart would clearly consider beneficial to its growth.

Previously, Walmart has joined forces with Big Food labels such as Coca Cola and Kelloggs to lobby the United States Department of Agriculture and Congress against any measures that would restrict SNAP use to healthy food choices. According to an earlier study by Michele Simon at Eat Drink Politics, in just one year, nine Walmart Supercenters in Massachusetts received more than $33 million in SNAP revenues.