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ARCHITECTS OF POWER: HOW THE GLOBAL ELITE PROFIT FROM EXTREME INEQUALITY & PRE-EMPT THE BACKLASH

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By Dr. Tim Coles

Source: Waking Times

There is a new, mega-rich global elite consisting of a small number of billionaires and multibillionaires. Many of them made their money in the technology sector. Others play financial markets or inherit fortunes. They are wealthier and more powerful than some entire nation-states.

The British Ministry of Defence (MoD) says:

“Whilst there have always been differences between the wealthier, better educated and the less privileged, these differences appear likely to widen in the coming decades.”

The mega-rich deliberately order the world in ways that guarantee their wealth by institutionalising inequality. Occasionally, this is admitted. In 1997, a book published by the Royal Institute for International Affairs in the UK acknowledged:

“The present international order may not be the best of all possible worlds, but for one of the ‘fat cats of the West’ enjoying a privileged position in an international society that is structured and organised in ways which perpetuate those privileges, there are good reasons for not pursuing radical change.”

This is also true of internal policymaking. The third richest man in the world, Warren Buffett (worth over $80bn), confirmed this: “There’s been class warfare for the last 20 years, and my class has won.” This echoes his statement in 2006, just prior to the global financial crisis: “There’s class warfare all right… but it’s my class, the rich class, that’s making war, and we’re winning.” Around the same time, the liquidity firm Citigroup circulated an investor memo, stating: “Society and governments need to be amenable to disproportionately allow/encourage the few to retain that fatter profit share.” More recently, the UK MoD admitted: “In the coming decades, the very highest earners will almost certainly remain rich, entrenching the power of a small elite. Vested interests could reduce the prospect of economic reforms that would benefit the poorest.”

Consider the enormous concentration of wealth and power that results from this imbalance.

Ever-Increasing Power

Global and national inequality is staggering and getting worse. By 2011, a mere 147 – mainly US and European – corporations owned and controlled 40% of world trade and investment. Just four corporations influence the profitability and power of these 147: McGraw-Hill, which owns Standard & Poor’s ratings agency; Northwestern Mutual, owner of the indexer Russell Investments; the CME Group, which owns 90% of the Dow Jones market index; and Barclay’s bond fund index. Evaluative decisions by analysts at these firms affect the wealth and performance of each of the 147 giants.

That’s corporate wealth concentration. But what about wealth concentration among individuals?

There are 7.7 billion people in the world. Of those, just 2,153 are billionaires. According to Forbes, their combined wealth totals $8.7 trillion. The list of billionaires reflects where power is most concentrated: in the US. While China and Europe’s number of billionaires declined in the previous 12 months, the US and Brazil gained billionaires. The US is home to 607 billionaires or 0.000001% of the population. It is worth noting that President Donald Trump was a billionaire before he came to power. Trump has cut taxes for his fellow billionaires. As an indication of continued wealth concentration, consider the wealth disparity among the billionaire class itself. He Xiangjian, founder of the Midea Group, is the joint-50th richest person, worth over $19.8bn. Jeff Bezos, by comparison, the founder of Amazon, is the richest man in the world, worth over $131bn – more than six times He Xiangjian.

Part of the problem has been the US-led imposition of an economic dogma called “neoliberalism” (which is neither new nor liberal) on much of the rest of the world.

Neoliberalism can be roughly defined as:

1) Financialisation, i.e., allowing investors to make money from money as opposed to tangible things;

2) Deregulating financial services;

3) Taking out government insurance policies so that working people bail out financial institutions;

4) Cutting taxes for the wealthy;

5) Privatising public services to reduce social mobility;

6) Imposing austerity to make markets more attractive to investors.

Neoliberalism has cut taxes for the super-rich, enabling them to hold onto their wealth at the expense of others. According to Oxfam, the average rate of personal income tax for the wealthy was 62% in 1970. In 2013, it was 38%. In the UK, the poorest 10% pay a higher proportion of their income in taxes than the richest 10%. Global GDP, i.e., how much money there is in the world, is $80 trillion. But, of this, $7.6 trillion is untaxed. In the decade since the financial crisis, the number of billionaires doubled. This reveals that the system rewards greed. In 2017, 43 people owned as much wealth as half the world’s poorest. In 2018, the number was 26.

To put all this into perspective, Jeff Bezos owns as much wealth as the poorest fifty countries. When it comes to more ‘developed’ nations, Bezos’s wealth equals the entire GDP of Hungary. Consider how Bezos makes his money. Amazon is a corporation that primarily advertises and delivers products. The innovation, design, and investment in and of those products is the work of others. Amazon treats “workers like robots” by spying on them, discouraging unions, offering insecure contracts, and encouraging long hours. Amazon is also notorious for paying little or no corporation tax. Amazon is an online retailer. The Internet was developed by the US Defense Department in the 1960s as ARPANET, with public money. The satellites that enable online transactions are first and foremost military hardware. Not only did Amazon take advantage of state-funded innovation, but it also rewards government investors by selling the CIA cloud technology and the Pentagon artificial intelligence.

Bezos is far from being the only one. Bill Gates’s Microsoft and the late Steve Jobs’s Apple, which became the first trillion-dollar company, also enjoy low taxes, technologies developed with government grants, and procurement contracts.

Consider also the immoral activities of other hi-tech nouvelle méga riche. Without making it clear to users, Facebook founder Mark Zuckerberg (worth $66bn) has made his money by selling personal data to insurers and advertisers. Scientists have used Facebook in social media experiments without the knowledge or consent of users in an effort to see how memes affect mood.

Other mega-rich, including the hedge fund manager Robert Mercer of Renaissance Technologies, used Facebook to market political candidates. Other tech billionaires include Google founders Larry Page and Sergey Brin. Google technology was funded by the CIA’s venture capital firm In-Q-Tel. Also relying on technologies developed by the Pentagon with workers’ tax dollars, the company cooperates with the National Security Agency to spy on citizens and it has even enabled US assassination programmes.

Consequences

How do the billionaires get away with it, and what are the social and political consequences? The examples below are from the US, but it should be noted that the US exports its mega-wealth model.

A study by Martin Gilens and Benjamin I. Page on plutocracy (government by the rich) notes that the rich buy political parties. Politicians draft and/or vote for laws that help the rich. The authors analysed 1,779 policy issues in the US and conclude that “average citizens and mass-based interest groups have little or no independent influence.” Unlike the public, “economic elites and organised groups representing business interests have substantial independent impacts on US government policy.” Other research into wealth inequality in the US finds that “[c]ertain policies, such as the decreased support for unions and tax cuts favouring the relatively well-off and corporations, have benefitted a small minority of the population at the expense of the majority and have thus contributed to widening income inequality.”

At the turn of the last century, 9% of American families owned 71% of the nation’s wealth. The elite of the day included familiar names: John D. Rockefeller (oil), J.P. Morgan (banking), W. Averell Harriman (industry), and so on. Things balanced out after the Second World War, with the majority of Americans becoming middle class. Gradually, state controls over the economy were removed, and the situation reverted to the inequality of bygone centuries.

Since the 1970s, the US middle class has been shrinking. Until recently, the middle classes of Asia grew, precisely because strong Asian economies (notably China, South Korea, and Singapore) either retained some state controls or refused to adopt the US neoliberal model.

Alan B. Krueger, a labour economist and key Obama advisor, explains that, “since the 1970s income has grown more for families at the top of the income distribution than in the middle, and it has shrunk for those at the bottom.” Between 1979 and 2007, the top 1% ((multi)millionaires and (multi)billionaires) enjoyed a 278% increase in their after-tax incomes. But 60% of Americans saw their incomes rise by just 40%, which when adjusted for rising living costs means stagnation. Krueger notes that during that period, $1.1 trillion of annual income was moved to the top 1%. “Put another way, the increase in the share of income going to the top 1% over this period exceeds the total amount of income that the entire bottom 40 percent of households receives.”

The exportation of this model means that Australia, Britain, and Canada became what the billionaire-dollar liquidity firm Citigroup calls “plutonomies,” economies in which the rich drive luxury goods markets such as jewellery, fashion, cruises, and sports cars: hence the recent entry of celebrity Kylie Jenner into the billionaire class. The Citigroup document also notes that in plutonomies the top 1% owns 40% as much wealth as the bottom 95%. No matter where you live, you can’t escape the institutional structures that create inequality.

The US military exists, in part, to maintain the unjust status quo. Yet, it acknowledges the dangers of dominance: “A global populace that is increasingly attuned and sensitive to disparities in economic resources and the diffusion of social influence,” thanks in part to the very technologies that enrich the rich, “will lead to further challenges to the status quo and lead to system rattling events,” like Brexit or the Yellow Vest protestors in France.

The mega-rich and international think tanks and forums they sponsor are beginning to reluctantly accept that their status quo political puppets might get voted out of office and give way to so-called far-left or far-right parties unless they address wealth inequality.

New Paradigms of Control

The question, then, is how to deal with the restless and disaffected majority while not radically altering the system and taking away the privileges of the elite. In 1961, US President John F Kennedy said: “If a free society cannot help the many who are poor, it cannot save the few who are rich.” In the 1980s, World Economic Forum founder Klaus Schwab said: “Economic globalisation has entered a critical phase. A mounting backlash against its effects… is threatening a very disruptive impact on economic activity and social stability in many countries… This can easily turn into revolt.” More recently, he said: “Today, we face a backlash against that system and the elites who are considered to be its unilateral beneficiaries.” Likewise, the billionaire Johann Rupert of Cartier jewellery (one of the many luxury services driving plutonomies) said: “We are destroying the middle classes at this stage and it will affect us.” Similarly, the British MoD discusses “[m]anagement of societal inequalities,” as opposed to the elimination of social inequality.

Many of the new elites make people redundant by automating the workplace. While Amazon still relies on human shelf-stackers and delivery drivers, it uses an increasing number of physical robots to stack shelves and algorithmic robots to assist online customers. Likewise, Facebook and Google’s content filters rely on heavy automation. This is creating precarious employment conditions. According to the Washington Post (which is owned by Bezos): “…the modern emerging workforce of tech, urbanised professionals, and ‘gig economy’ labourers all represent an entirely new political demographic.” Politicians then “focus more on education, research and entrepreneurship, and less on regulations and the priorities of labour unions.”

But there are many problems. For one thing, the financial services economy, which markets everything, has made “education” a form of unsustainable debt. The quality of US education is notoriously low by world standards, and many young people are “overqualified” for menial jobs, like delivering for Uber or stacking shelves in Amazon warehouses. The UK MoD acknowledges that, “Freelance work is… often low-paid, lacking the benefits and security of formal employment and, therefore, the growth of the gig economy could increase inequality.”

The crisis of what to do with a young, indebted, restless population automated out of steady work by – and competing with – algorithms and physical robots has been considered for at least 50 years.

Traditionally, ‘education’ meant brainwashing children to work in menial jobs for life in adulthood. But as the economy changes and employment becomes less stable, new methods of ‘education’ for re-skilling adults are required. In the late 1960s, future political advisor Zbigniew Brzezinski authored a book in which he advocated for lifelong learning as a way of re-skilling an aging population that finds its employment opportunities diminished, as small-to-medium-sized businesses get overtaken by tech giants. Around the same time, the British Labour Party (when it was a real labour party) introduced the Open University with the aim of providing lifelong learning. Likewise, in the 1980s, futurist Alvin Toffler envisaged an “electronic village” in which flexible working hours and lifelong learning would be required in a hi-tech economy.

To keep the poor from rioting while trapping them in a system that works for those who design it, today’s multibillionaire elites help to privatise public services and education by offering scholarships and infrastructure investments. In doing so, they train poor people to work for their system by developing others’ technology skills while hiding their own taxable wealth in charity foundations.

Howard G. Buffett is the son of Warren. While enjoying largely tax-free wealth that further impoverishes the global poor, the Buffetts, via Howard’s foundation, invest in dams and irrigation in the poorest nations of Africa. Bezos’s foundation awards scholarships for STEM courses (Science, Technology, Engineering, Mathematics). Zuckerberg’s foundation seeks “to find new ways to leverage technology, community-driven solutions, and collaboration to accelerate progress in Science, Education, and within our Justice & Opportunity work.”

Conclusion

By using free online services, we have allowed ourselves to be the products that tech giants sell to advertisers. By not organising to raise taxes on the mega-wealthy, we have underfunded our public services. By not keeping an eye on who’s funding what, we’ve allowed our political parties to hoover up donations from elites. By failing to understand the economy, we’ve allowed a new normal of instability and political uncertainty to flourish to the advantage of asset managers and hedge fund investors. As the US pursues global domination, this model will continue to be exported. It’s time to wake up.

This holiday season, American workers have little to celebrate

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By Danny Haiphong

Source: Intrepid Report

Every year, much of the U.S. population celebrates Thanksgiving and Christmas to show appreciation for their families and friends. Thanksgiving normalizes the colonial origins of the United States and erases the brutality of the English settlers who massacred indigenous people to prepare the land for capitalist accumulation. Christmas is the annual holiday of big business. On no other day are workers more encouraged to spend their wages on the latest consumer product to gift to their loved ones. The holidays bring with them a deep pressure to be merry. Yet on this holiday season, workers have little to celebrate.

A new study by Brookings Institution provides a snapshot into the devastation wrought on the working class by American capitalism. Forty-four percent of all workers between the ages of 18-64 are employed in low-wage sectors and earn an average of $16 or less per hour. The study excluded workers who logged over 98 hours per week over the last year as well as certain sections of the college-educated population such as those living in dormitories and attending graduate school. Had these groups of workers been counted, the percentage of low-wage workers out of the total population would likely be even higher. This verifies prior datasets which proved that around half of the U.S. population makes less $30,000 per year.

The growing poverty of the American worker is a major contributor to the growth of toxic stress and mental illness. Half of all U.S. adults will develop a mental illness over the course of their life. Serious mental health conditions afflict nearly ten million people in the United States and over a quarter of these individuals live below the official poverty line. Suicide rates are at a thirty-year high. An obvious connection exists between rising poverty and the worsening mental health of the American worker.

Workers in the United States see no future under the current stage of capitalism. They struggle to afford rent in a nation where the federal minimum wage cannot pay for a two-bedroom apartment anywhere in the country. They indebt themselves in the trillions to attend college and obtain healthcare. They work in redundant, service sector jobs where hours are long and mistreatment, abuse, and injury are all too common. The American worker is increasingly alienated from themselves and each other. Union density rates in the U.S. have fallen to just ten percent of all workers since World War II.

The shrinking labor movement has followed a larger trend in U.S. society. Privatization has decimated the public sector. Workers have few places to socially convene independent of the machinations of consumer capitalism. Workers are competing for fewer jobs, most of which are not worth competing for at all. Homelessness, mass incarceration, and endless war remind workers that they can easily be turned into cannon fodder if they step out of line. In such an environment, addiction and self-destruction is encouraged while organizing for justice is discouraged.

Economic insecurity and alienation place more pressure on families to make up for stagnant wages and exorbitant amounts of debt. More young workers are living with their parents than at any other time in the last one hundred years. Older workers are not only forestalling retirement but also finding themselves without family or community support as siblings and adult children chase the highest paying jobs and the lowest rents and property values. Couples feel compelled to remain in toxic relationships for economic reasons. A strong link exists between domestic violence and poverty.

Contrary to the messages in Hallmark cards or the corporate media, the holidays are far from a time of celebration. Many workers view the holiday season as a harsh reminder of the loss, alienation, and despair that they’ve experienced over the course of their lives. Holidays place added pressure on workers to dismiss the ills of capitalism and the personal stressors associated with them. It should come as no surprise that most workers already struggling with mental health conditions report that the holidays only worsen their symptoms. Instead of embracing humanity, the holidays encourage workers to embrace rampant commercialism and the nuclear family.

To break from a culture steeped in the profit motive, workers will need to create their own traditions based upon solidarity and social transformation. Not everything about the holidays needs to be thrown out in the process. Spending time with family and friends during a day off from work can and should be rewarding to the psyche and to society. The conditions of capitalism prevent the holidays from serving a social purpose. Holidays under capitalism breed despair but brand themselves as moments of pure joy.

While workers may have little to celebrate this holiday season, there are reasons for the working class to be optimistic in the years to come. Teachers in cities such as Chicago and Los Angeles have won key gains in 2019 by using the most powerful weapon at the disposal of organized labor: the strike. At the beginning of the year, the Los Angeles Teachers won smaller class sizes and more support staff. The Chicago Teachers Union massively increased the number of nurses in the school district by forcing the city to hire nurses rather than continue the inefficient and harmful practice of hiring private contractors. The UAW’s strike of General Motors (GM) earlier this Fall made global headlines even if it was unable to win every demand that the workers put forth. These strikes reflect a growth of class consciousness in the United States. The continued growth of class consciousness will be critical toward building the kind of struggle capable of bringing about massive political and economic change for the working class.

Furthermore, workers around the world are leading the way in the struggle against class inequality and foreign-sponsored wars. Massive protests in Haiti, Chile, Honduras, and Algeria are just a few of many occurring around the globe. The protests have mainly targeted repressive U.S.-backed governments and their neoliberal economic agenda. China is leading the world in poverty reduction. Cuba is the most sustainably developed nation in the world. A vast majority of workers around the world want to see an end of the miseries imposed by global capital and are actively fighting to make their demands a reality.

The question is whether workers in the United States can decisively break from the despair, the racism, and the extreme alienation shaping their current condition. Being determines consciousness. At this moment, the neoliberal race to the bottom has rendered most workers too fearful, disorganized, and full of self-blame to fight back. However, millions of workers have rallied behind the political campaign of Bernie Sanders. Labor unrest is likely to continue as neither political party appears interested in implementing Bernie Sanders’ social democratic agenda. Workers in the United States are in desperate need of a revived labor movement to quench their thirst for a better life. Putting our energies into building this movement will go a long way toward shaking the Holiday Blues and giving workers something to really celebrate: a society run by workers, in the interests of workers.

The Real Big Brother

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By Eric Zuesse

Source: Consortium News

Jeff Bezos is the owner of The Washington Post, which leads America’s news-media in their almost 100 percent support and promotion of neoconservatism, American imperialism and wars. This includes sanctions, coups, and military invasions against countries that America’s billionaires want to control but don’t yet control — such as Venezuela, Syria, Iran, Russia, Libya, and China.

These are aggressive wars against countries which have never aggressed against the United States. They are not, at all, defensive, but the exact opposite. It’s not necessarily endless war (even Hitler hadn’t planned that), but war until the entire planet has come under the control of the U.S. Government, a government that is itself controlled by America’s billionaires, the funders of neoconservatism and imperialism — in both major American political parties, think tanks, newspapers, TV networks, etcetera.

Bezos has been a crucial part of neoconservatism, ever since, at the June 6-9 2013 Bilderberg meeting, he arranged with Donald Graham, the Washington Post’s owner, to buy that newspaper, for $250 million. Bezos had already negotiated, in March of that same year, with the neoconservative CIA Director, John Brennan, for a  $600 million ten-year cloud computing contract that transformed Amazon corporation, from being a reliable money-loser, into a reliably profitable firm.

That caused Bezos’s net worth to soar even more (and at a sharper rate of rising) than it had been doing while it had been losing money. He became the most influential salesman not only for books, but for the CIA, and for such mega-corporations as Lockheed Martin. Imperialism has supercharged his wealth, but it didn’t alone cause it. Bezos might be the most ferociously gifted business-person on the planet.

Some of America’s billionaires don’t care about international conquest as much as he does, but all of them at least accept neoconservatism; none of them, for example, establishes and donates large sums to, anti-imperialistic organizations; none of America’s billionaires is determined to end the reign of neoconservatism, nor even to help the fight to end it, or at least to end its grip over the U.S. government. None. Not even a single one of them does.

Plutocrat Bezos at the Pentagon with then Defense Secretary Ash Carter, May 2016. (Wikimedia Commons)

But many of them establish and donate large sums to neoconservative organizations, or run neocon organs such as The Washington Post.  That’s the way billionaires are, at least in the United States. All of them are imperialists. They sponsor it; they promote it and hire people who do, and demote or get rid of people who don’t. Expanding an empire is extremely profitable for its aristocrats, and always has been, even before the Roman Empire.

Bezos wants to privatize everything around the world that can become privatized, such as education, highways, health care, and pensions. The more that billionaires control those things, the less that everyone else does; and preventing control by the public helps to protect billionaires against democracy that would increase their taxes and government regulations that would reduce their profits by increasing their corporations’ expenses. So, billionaires control the government in order to increase their takings from the public.

With the help of the war promotion of  The Washington Post, Bezos is one of the world’s top personal sellers to the U.S. military-industrial complex. He controls and is the biggest investor in Amazon corporation, whose Web Services division supplies all cloud-computing services to the Pentagon, CIA and NSA. (He’s leading the charge in the most advanced facial recognition technology too.)

In April there was a headline, “CIA Considering Cloud Contract Worth ‘Tens of Billions’,” which contract could soar Bezos’s personal wealth even higher into the stratosphere, especially if he wins all of it (as he previously did).

He also globally dominates, and is constantly increasing his control over the promotion and sale of books and films, because his Amazon is the world’s largest retailer (and now also one of the largest publishers, producers and distributors.) That, too, can have a huge impact upon politics and government, indirectly, by promoting the most neocon works helping to shape intellectual discourse (and voters’ votes) in the country.

Bezos is crushing millions of retailers by his unmatched brilliance at controlling one market after another as Amazon or as an essential middleman for — and often even a controller of — Amazon’s retail competitors.

He is a strong believer in “the free market”, which he has mastered perhaps better than anyone. This means that Bezos supports the unencumbered ability of billionaires, by means of their money, to control and eventually absorb all who are less powerful than they.

Because he is so enormously gifted himself at amassing wealth, he has thus-far been able to rise to the global top, as being one of the world’s most powerful individuals. The wealthiest of all is King Salman— the owner of Saudi Arabia, whose Aramco (the world’s largest oil company) is, alone, worth over a trillion dollars. (Forbes and Bloomberg exclude monarchs from their wealth-rankings.)

In fact, Bloomberg is even so fraudulent about it as to have headlined on Aug. 10, “The 25 wealthiest dynasties on the planet control $1.4 trillion” and violated their tradition by including on their list one monarch, King Salman, whom they ranked at #4 as owning only $100 million, a ludicrously low ‘estimate’, which brazenly excluded not just Aramco but any of the net worth of Saudi Arabia.

Bloomberg didn’t even try to justify their wacky methodology, but merely presumed the gullibility of their readers for its acceptance. That King, therefore, is at least seven times as rich as Bezos is. He might possibly be as powerful as Bezos is. The supreme heir is lots wealthier even than the supreme self-made billionaire or “entrepreneur” is.

Certainly, both men are among the giants who bestride the world in our era. And both men are libertarians — champions of the belief that property rights (of which, billionaires have so much) are the basis of all rights, and so they believe that the wealthiest people possess the most rights of all, and that the poorest people have the least, and that all persons whose net worths are negative (having more debts than assets) possess no rights except what richer people might donate to or otherwise grant to them, out of kindness or otherwise (such as familial connections).

This — privatization of everything — is what libertarianism is: a person’s worth is his or her “net worth” — nothing else. That belief is pure libertarianism. It’s a belief that many if not most billionaires hold. Billionaires are imperialistic because they seek to maximize the freedom of the super-rich, regardless of whether this means increasing their takings from, or ultimately impoverishing, everyone who isn’t super-rich. They have a coherent ideology. It’s based on wealth. The public instead believes in myths that billionaires enable to be promulgated.

Like any billionaire, Bezos hires and retains employees and other agents who do what he/she wants them to do. This is their direct power. But billionaires also possess enormous indirect power by means of their interdependencies upon one-another, as each large corporation is contractually involved with other corporations, especially with large ones such as they; and, so, whatever power any particular billionaire possesses is actually a shared power, along with the others. (An example was the deal Bezos made with Graham.)

Collectively, they network together, even with ones they might never even have met personally, but only through their representatives, and even with their own major economic competitors. This is collective power which billionaires possess in addition to their individual power as hirers of employees and other agents.

Whereas Winston Smith, in the prophetic allegorical novel 1984, asked his superior and torturer O’Brien, “Does Big Brother exist?”

“‘Of course he exists. The Party exists. Big Brother is the embodiment of the Party.’

‘Does he exist in the same way as I exist?’

‘You do not exist,’ said O’Brien.”

This collective power is embodied by Bezos as well as any billionaire does.  A few of the others may embody it too, such as Bill Gates, Warren Buffett, Larry Ellison, Mark Zuckerberg, Charles Koch, Sergey Brin, Michael Bloomberg, George Soros,  and Jack Dorsey.  They compete against each other, and therefore have different priorities for the U.S. government; but, all of them agree much more than they disagree in regards to what the Government “should” do (especially that the U.S. military should be expanded — at taxpayer’s expense, of course, not their own).

Basically, Big Brother, in the real world is remarkably coherent and unified — far more so than the public is — and this is one of the reasons why they control Government, bypassing the public.

Here is how all of this plays out, in terms of what Bezos’s agents have been doing:

His Amazon pays low to no federal taxes because the Federal Government has written the tax-laws to encourage companies to do the types of things that Bezos has always wanted Amazon to do.

The U.S. government consequently encourages mega-corporations through taxes and regulations to crush small firms by making it harder for them to grow. That somewhat locks-in the existing aristocracy to be less self-made (as Bezos himself was, but his children won’t be).

Elected politicians overwhelmingly support this because most of their campaign funds were donated by super-rich individuals and their employees and other agents. It’s a self-reinforcing system. Super-wealth controls the government, which (along with the super-wealthy and their corporations) controls the public, which reduces economic opportunity for them. The end-result is institutionally reinforced extreme wealth-inequality, becoming more extreme all the time.

The billionaires are the real Big Brothers. And Bezos is the biggest of them all.

For Economic Truth Turn To Michael Hudson

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By Paul Craig Roberts

Source: PaulCraigRoberts.org

Readers ask me how they can learn economics, what books to read, what university economics departments to trust. I receive so many requests that it is impossible to reply individually. Here is my answer.

There is only one way to learn economics, and that is to read Michael Hudson’s books. It is not an easy task. You will need a glossary of terms. In some of Hudson’s books, if memory serves, he provides a glossary, and his recent book “J Is for Junk Economics” defines the classical economic terms that he uses. You will also need patience, because Hudson sometimes forgets in his explanations that the rest of us don’t know what he knows.

The economics taught today is known as neoliberal. This economics differs fundamentally from classical economics that Hudson represents. For example, classical economics stresses taxing economic rent instead of labor and real investment, while neo-liberal economics does the opposite.

An economic rent is unearned income that accrues to an owner from an increase in value that he did nothing to produce. For example, a new road is built at public expense that opens land to development and raises its value, or a transportation system is constructed in a city that raises the value of nearby properties. These increases in values are economic rents. Classical economists would tax away the increase in values in order to pay for the road or transportation system.

Neoliberal economists redefined all income as earned. This enables the financial system to capitalize economic rents into mortgages that pay interest. The higher property values created by the road or transportation system boost the mortgage value of the properties. The financialization of the economy is the process of drawing income away from the purchases of goods and services into interest and fees to financial entities such as banks. Indebtedness and debt accumulate, drawing more income into their service until there is no purchasing power left to drive the economy.

For example, formerly in the US lenders would provide a home mortgage whose service required up to 25% of the family’s monthly income. That left 75% of the family’s income for other purchases. Today lenders will provide mortgages that eat up half of the monthly income in mortgage service, leaving only 50% of family income for other purchases. In other words, a financialized economy is one that diverts purchasing power away from productive enterprise into debt service.

Hudson shows that international trade and foreign debt also comprise a financialization process, only this time a country’s entire resources are capitalized into a mortgage. The West sells a country a development plan and a loan to pay for it. When the debt cannot be serviced, the country is forced to impose austerity on the population by cutbacks in education, health care, public support systems, and government employment and also to privatize public assets such as mineral rights, land, water systems and ports in order to raise the capital with which to pay off the loan. Effectively, the country passes into foreign ownership. This now happens even to European Community members such as Greece and Portugal.

Another defect of neoliberal economics is the doctrine’s denial that resources are finite and their exhaustion a heavy cost not born by those who exploit the resources. Many local and regional civilizations have collapsed from exhaustion of the surrounding resources. Entire books have been written about this, but it is not part of neoliberal economics. Supplement study of Hudson with study of ecological economists such as Herman Daly.

The neglect of external costs is a crippling failure of neoliberal economics. An external cost is a cost imposed on a party that does not share in the income from the activity that creates the cost. I recently wrote about the external costs of real estate speculators. https://www.paulcraigroberts.org/2018/04/26/capitalism-works-capitalists/ Fracking, mining, oil and gas exploration, pipelines, industries, manufacturing, waste disposal, and so on have heavy external costs associated with the activities.

Neoliberal economists treat external costs as a non-problem, because they theorize that the costs can be compensated, but they seldom are. Oil spills result in companies having to pay cleanup costs and compensation to those who suffered economically from the oil spill, but most external costs go unaddressed. If external costs had to be compensated, in many cases the costs would exceed the value of the projects. How, for example, do you compensate for a polluted river? If you think that is hard, how would the short-sighted destroyers of the Amazon rain forest go about compensating the rest of the world for the destruction of species and for the destructive climate changes that they are setting in motion? Herman Daly has pointed out that as Gross Domestic Product accounting does not take account of external costs and resource exhaustion, we have no idea if the value of output is greater than all of the costs associated with its production. The Soviet economy collapsed, because the value of outputs was less than the value of inputs.

Supply-side economics, with which I am associated, is not an alternative theory to neoliberal economics. Supply-side economics is a successful correction to neoliberal macroeconomic management. Keynesian demand management resulted in stagflation and worsening Phillips Curve trade-offs between employment and inflation. Supply-side economics cured stagflation by reversing the economic policy mix. I have told this story many times. You can find a concise explanation in my short book, “The Failure of Laissez Faire Capitalsim.” This book also offers insights into other failures of neoliberal economics and for that reason would serve as a background introduction to Hudson’s books.

I can make some suggestions, but the order in which you read Michael Hudson is up to you. “J is for Junk Economics” is a way to get information in short passages that will make you familiar with the terms of classical economic analysis. “Killing the Host” and “The Bubble and Beyond” will explain how an economy run to maximize debt is an economy that is self-destructing. “Super Imperialism” and “Trade, Development and Foreign Debt” will show you how dominant countries concentrate world economic power in their hands. “Debt and Economic Renewal in the Ancient Near East” is the story of how ancient economies dying from excessive debt renewed their lease on life via debt forgiveness.

Once you learn Hudson, you will know real economics, not the junk economics marketed by Nobel prize winners in economics, university economic departments, and Wall Street economists. Neoliberal economics is a shield for financialization, resource exhaustion, external costs, and capitalist exploitation.

Neoliberal economics is the world’s reigning economics. Russia is suffering much more from neoliberal economics than from Washington’s economic sanctions. China herself is overrun with US trained neoliberal economists whose policy advice is almost certain to put China on the same path to failure as all other neoliberal economies.

It is probably impossible to change anything for two main reasons. One is that so many greed-driven private economic activities are protected by neoliberal economics. So many exploitative institutions and laws are in place that to overturn them would require a more thorough revolution than Lenin’s. The other is that economists have their entire human capital invested in neoliberal economics. There is scant chance that they are going to start over with study of the classical economists.

Neoliberal economics is an essential part of The Matrix, the false reality in which Americans and Europeans live. Neoliberal economics permits an endless number of economic lies. For example, the US is said to be in a long economic recovery that began in June 2009, but the labor force participation rate has fallen continuously throughout the period of alleged recovery. In previous recoveries the participation rate has risen as people enter the work force to take advantage of the new jobs.

In April the unemployment rate is claimed to have fallen to 3.9 percent, but the participation rate fell also. Neoliberal economists explain away the contradiction by claiming that the falling participation rate is due to the retirement of the baby boom generation, but BLS jobs statistics indicate that those 55 and older account for a large percentage of the new jobs during the alleged recovery. This is the age class of people forced into the part time jobs available by the absence of interest income on their retirement savings. What is really happening is that the unemployment rate does not include discouraged workers, who have given up searching for jobs as there are none to be found. The true measure of the unemployment rate is the decline in the labor force participation rate, not a 3.9 percent rate concocted by not counting those millions of Americans who cannot find jobs. If the unemployment rate really was 3.9 percent, there would be labor shortages and rising wages, but wages are stagnant. These anomalies pass without comment from neoliberal economists.

The long expansion since June 2009 might simply be a statistical artifact due to the under-measurement of inflation, which inflates the GDP figure. Inflation is under-estimated, because goods and services that rise in price are taken out of the index and less costly substitutes are put in their place and because price increases are explained away as quality improvements. In other words, statistical manipulation produces the favorable picture required by The Matrix.

Since the financial collapse caused by the repeal of Glass-Steagall and by financial deregulation, the Federal Reserve has robbed tens of millions of American savers by driving real interest rates down to zero for the sole purpose of saving the “banks too big to fail” that financial deregulation created. A handful of banks has been provided with free money—in addition to the money that the Federal Reserve created in order to take the banks’ bad derivative investments off their hands—to put on deposit with the Fed from which to collect interest payments and with which to speculate and to drive up stock prices.

In other words, for a decade the economic policy of the United States has been run for the benefit of a few highly concentrated financial interests at the expense of the American people. The economic policy of the United States has been used to create economic rents for the mega-rich.

Neoliberal economists point out that during the 1950s the labor force participation rate was much lower than today and, thereby, they imply that the higher rates prior to the current “recovery” are an anomaly. Neoliberal economists have no historical knowledge as the past is of no interest to them. They do not even know the history of economic thought. Whether from ignorance or intentional deception, neoliberal economists ignore that the lower labor force participation rates of the 1950s reflect a time when married women were at home, not in the work force. In those halcyon days, one earner was all it took to sustain a family. I remember the days when the function of a married woman was to provide household services for the family.

But capitalists were not content to exploit only one member of a family. They wanted more, and by using economic policy to suppress pay while fomenting inflation, they drove married women into the work force, imposing huge external costs on the family, child-raising, relations between spouses, and on the children themselves. The divorce rate has exploded to 50 percent and single-parent households are common in America.

In effect, unleashed Capitalism has destroyed America. Privatization is now eating away Europe. Russia is on the same track as a result of its neoliberal brainwashing by American economists. China’s love of success and money could doom this rising Asian giant as well if the government opens China to foreign finance capital and privatizes public assets that end up in foreign hands.

Billionaires Want Poor Children’s Brains to Work Better

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By Gerald Coles

Source: CounterPunch

Why are many poor children not learning and succeeding in school? For billionaire Bill Gates, who funded the start-up of the failed Common Core Curriculum Standards, and has been bankrolling the failing charter schools movement, and Facebook’s Mark Zuckerberg, it’s time to look for another answer, this one at the neurological level. Poor children’s malfunctioning brains, particularly their brains’ “executive functioning”–that is, the brain’s working memory, cognitive flexibility, and inhibitory control–must be the reason why their academic performance isn’t better.

Proposing to fund research on the issue, the billionaires reason that not only can executive malfunctioning cause substantial classroom learning problems and school failure, it also can adversely affect socio-economic status, physical health, drug problems, and criminal convictions in adulthood. Consequently, if teachers of poor students know how to improve executive function, their students will do well academically and reap future “real-world benefits.” For Gates, who is always looking for “the next big thing,” this can be it in education.

Most people looking at this reasoning would likely think, “If executive functioning is poorer in poor children, why not eliminate the apparent cause of the deficiency, i.e., poverty?” Not so for the billionaires. For them, the “adverse life situations” of poor students are the can’t-be-changed-givens. Neither can instructional conditions that cost more money provide an answer. For example, considerable research on small class size teaching has demonstrated its substantially positive academic benefits, especially for poor children, from grammar school through high school and college. Gates claims to know about this instructional reform, but money-minded as he is, he insists these findings amount to nothing more than a “belief” whose worst impact has been to drive “school budget increases for more than 50 years.”

Cash–rather, the lack of it–that’s the issue: “You can’t fund reforms without money and there is no more money,” he insists. Of course, nowhere in Gates’ rebuke of excessive school spending does he mention corporate tax dodging of state income taxes, which robs schools of billions of dollars. Microsoft, for example, in which Gates continues to play a prominent role as “founder and technology advisor” on the company’s Board of Directors would provide almost $29.6 billion in taxes that could fund schools were its billions stashed offshore repatriated.

In a detailed example of Microsoft’s calculated tax scheming and dodging that would provide material for a good classroom geography lesson, Seattle Times reporter, Matt Day, outlined one of the transcontinental routes taken by a dollar spent for a Microsoft product in Seattle. Immediately after the purchase, the dollar takes a short trip to Microsoft’s company headquarters in nearby Redmond, Washington, after which it moves to a Microsoft sales subsidiary in Nevada. Following a brief rest, the dollar breathlessly zigzags from one offshore tax haven to another, finally arriving in sunny Bermuda where it joins $108 billion of Microsoft’s other dollars. Zuckerberg’s Facebook has similarly kept its earnings away from U.S. school budgets.

By blaming poor children’s school learning failure on their brains, the billionaires are continuing a long pseudoscientific charade extending back to 19th century “craniology,” which used head shape-and-size to explain the intellectual inferiority of “lesser” groups, such as southern Europeans and blacks. When craniology finally was debunked in the early 20thcentury, psychologists devised the IQ test, which sustained the mental classification business. Purportedly a more scientific instrument, it was heavily used not only to continue craniology’s identification of intellectually inferior ethnic and racial groups, but also to “explain” the educational underachievement of black and poor-white students.

After decades of use, IQ tests were substantially debunked from the 1960s onward, but new, more neurologically complex, so-called brain-based explanations emerged for differing educational outcomes. These explanations conceived of the overall brain as normal, but contended that brain glitches impeded school learning and success. Thus entered “learning disabilities,” “dyslexia,”and “attention deficit hyperactivity disorder (ADHD)” as major neuropsychological concepts to (1) explain school failure, particularly for poor children, although the labels also extended to many middle-class students; and (2) serve as “scientific” justification for scripted, narrow, pedagogy in which teachers seemingly reigned in the classroom, but in fact, were themselves controlled by the prefabricated curricula.

In the forefront of this pedagogy was the No Child Left Behind legislation (NCLB), with its lock-step instruction, created under George W. Bush and continued by Barack Obama. Supposedly “scientifically-based,” federal funds supported research on “brain-based” teaching that would be in tune with the mental make-up of poor children, thereby serving to substitute for policy that would address poverty’s influence on educational outcomes. My review of the initial evidence supposedly justifying the launching of this diversionary pedagogy revealed it had no empirical support. However, for the students this instruction targeted, a decade had to pass before national test results confirmed its failure.

The history of “scientific brain-based” pedagogy for poor children has invariably been a dodge from addressing obvious social-class influences. In its newest iteration– improve poor children’s  executive functioning–billionaires Gates and Zuckerberg will gladly put some cash into promoting a new neurological fix for poor children, thereby helping (and hoping) to divert the thinking of education policy-makers, teachers and parents. Never mind that over three years ago, a review of research on executive functioning and academic achievement failed to find “compelling evidence that a causal association between the two exists.” What’s critical for these billionaires and the class they represent is that the nation continues to concoct policy that does not deplete the wealth of the rich and helps explain away continued poverty. Just because research on improving executive functioning in poor children has not been found to be a solution for their educational underachievement, doesn’t mean it can’t be!

Now that’s slick executive functioning!

 

Gerald Coles is an educational psychologist who has written extensively on the psychology, policy and politics of education. He is the author of Miseducating for the Global Economy: How Corporate Power Damages Education and Subverts Students’ Futures (Monthly Review Press).

America’s Dystopian Future

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By Robert Hunziker

Source: CounterPunch

Imagine a privatized America where rugged individualism reigns supreme within a vast network of corporate America, Inc., similar to 19th century wild west lifestyle, no social security, no Medicare, no Medicaid, no public law enforcement as individuals stand their own ground. Read all about it in Scott Erickson’s History of the Decline and Fall of America (Azaria Press, 2018).

Erickson’s newly released semi-fictional satire of American history and subsequent decline into deepening pits of despair is a sure-fire treasure trove of Americana, at its best. It’s a page-turner par excellence, rich in accurate textured American history and jam-packed with imagery of a dystopian future that is simply unavoidable based upon America’s character and development over the past two centuries. The dye was cast long before onset of dystopian existence.

The History of the Decline and Fall of America highlights and exposes inherent limitations of democratic capitalism whilst explaining in full living color a future American dystopia that is fully expected based upon America’s beginnings from the time of Captain John Smith at historic Jamestown (1607). The history lesson therein is superb, not missing a beat of what shaped America up to the final tipping point of neoliberal dogma and beyond into a deep dark world order.

This beautifully written and conceived historical fiction is a witty tour de force of America past, present, and future, weaving together all of the historical elements into one coherent story from the widely accepted version of American “business success ” of the early period, but over time wistfully morphing into abject failure!

That process of failure, the root causes, is what intrigues, for example, “Americans were not only inventing a country but inventing what it meant to be an American.” Indeed, America came into being as a brand new experiment in capitalistic democracy. Within that quest for a new way forward, inclusive of equality and fraternity amongst equals, Erickson discovers and reveals unique American traits that belie that mission, leading to a neoliberal/privatization hellhole that goes horribly wrong.

That fascinating pathway is explained via enchanting quips, for example, de Tocqueville’s remarkably astute comment: “ I know of no country, indeed, where the move of money has taken a stronger hold on the affections of men.” This one isolated statement from the 1830s tells a tale of American character molded by artificiality of wealth creation simply for the sake of possessing it. America’s pursuit of happiness was the “pursuit of affluence” and remained its dominant trait for the “remaining 200-plus years of American history.”

Indeed, those predominant American character traits are flushed-out and analyzed in the context of eventual failure, of a dystopian world order emanating out of America’s clumsy experimentation with empire-building and constantly striving for the pot at the end of the rainbow, meaning economic growth above all else. It was a frontier spirit that fed into elusive goals of preeminence: “The frontier resulted in Americans being doers rather than thinkers….”

Real scenes of real American cocksuredness, as well as the clumsiness associated with raw ignorance, come to life, e.g., during the presidential race between Ike and Adlai Stevenson in 1954: “A revealing incident occurred while Stevenson was campaigning for president. A citizen shouted to Stevenson that he ‘had the vote of every thinking person.’Stevenson replied, ‘That’s not enough. We need a majority!”
This is excellent history, comparable to a textbook, as well as a peek into the future shaped via trends rooted throughout Americana. Erickson’s lessons in American history are genuine and accurate, which gives the book depth and a powerful sense of significance well beyond similar treatises that try to lay the challenging groundwork leading to how a nation turns sour into a dystopian society.

He weaves the path of Manifest Destiny all the way from 1840s to the planting of the American flag on the surface of the moon. Until the 1970s when American pre-eminence tipped downward, humiliated in Vietnam in what future generations came to know as The Vietnam Syndrome,” the psychological attempt to live with the unacceptable reality that it was possible for America to not win.

Not only was America no longer a winner in war, its “unparalleled level of affluence… began to decline.” The 1970s marked the high point, forever downward into a bottomless septic tank, a cloaca of messy foul shit earmarking America’s final destiny, third world status within a realm of excessive, pretense of wealth glistening behind spiked electronic gates.

The signs of decline were easy to spot by the early-mid 2000s: “… the situation had declined dramatically. According to statistics from 2015, among industrialized nations, America was notable for having the highest poverty rate, the lowest score on the UN index of ‘material well-being of children,’ the highest health care expenditures, the highest infant mortality rate, the highest prevalence of mental health problems, the highest obesity rate, the highest consumption of antidepressants per capita, the highest homicide rate, and the largest prison population per capita. By international standards, the rural counties of southern West Virginia and eastern Kentucky qualified as developing countries, as did large sections of American cities such as Detroit, Cleveland, Gary, and many others.” (Pg. 112)

Thereafter, America’s youth no longer embraced the long-standing belief that they would have more than their parents. No, they knew it would be less and less. America entered a “permanent recession” cycle.
By the late 2030s American experienced a series of extreme crises. A number of cities declared bankruptcy. Houston, America’s 4th largest city goes bankrupt. Cleveland goes bankrupt. The head of the Federal Reserve quits and becomes a banjo player in a bluegrass group. America’s banking system collapses under the weight of fishy loans and massive crazed derivatives all permitted by increasingly hands-off regulations. The brutal hand of libertarianism smears a once proud republic.

Regular citizens, entire families carry torches surrounding Wall Street in protest of loss savings, ATMs not functioning, banks closed. An economic death spiral unleashed. The Save America Act followed, consisting of pure right wing neoliberal fix-its to save corporate America, to save Wall Street, turning to America, Inc. as the only answer to all that ails.

And, as the financial markets unravel in the face of nationwide bankruptcies, the government convincingly informs the public: “We need to defy the Constitution in order to preserve it… Americans were so thoroughly confused about the relationship between government and economics that most of them thought that the terms democracy, free-enterprise, and capitalism were the same thing.” (Pg. 165)

As time progresses, America’s Labor Day is changed to Management Day, and the Catholic Church is permitted to re-name the Statue of Liberty as “Our Lady of Perpetual Economic Growth.” America the nation turns into America, Inc. It is the only way the establishment knows to drive the country out of its doldrums. As such, The Star Spangled Banner is changed to The Free Market Ramble.

Privatization of the entire country in harmony with massive tax cuts alongside elimination of Social Security, Medicare, Medicaid, public education, law enforcement, postal service, and maintenance of roads and infrastructure, thereafter, people take care of themselves from birth to the death, alone with family backing. Self-directed medical care becomes a beacon of survival of the fittest of the fittest. Those that participated as y0ungsters in Boy/Girl Scouts have a leg up in a society that increasingly places emphasis on rugged individualism. However, the many, many weaklings stumble in rows after rows of slimy gutters.

In the end, and similar to America’s 2008-09 financial collapse, which was only a warm up for much bigger things to come: “The decisive trigger, the one that pushed America beyond the point of no return, was the total collapse of the economy. It had been something of a miracle that the doomed economy had not collapsed long before. Toward the end it had been sustained by little more than momentum, since according to all economic indicators it should not have been functioning at all. The economic system based on infinite growth had reached the point where it could grow no more. American banks could not pay off previous debt by making further loans to generate more money. The pyramid scheme was over… An eerie calm descended upon all those involved in economics and finance.”

Public School or Prison? Here Are 10 Ways It’s Hard To Tell

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By Alice Jones Webb

Source: The Mind Unleashed

Every weekday morning, from September through June, parents across the country get up earlier than they want to, rush like crazy, wrangle kids into appropriate clothing, and wait in exhausting drop-off lines to get their children to school on time. Why? Because punctuality is a virtue? Or because they are afraid of getting in trouble?

In big cities and small communities, the same routine is repeated with minor variations. Small children and near adult adolescents will spend the majority of their waking hours somewhere they would rather not be. But few people question the set-up. Parents send their kids to school with the best of intentions, wanting to produce happy, healthy, productive adults. Public school is supposed to be for their own good. Very few question its necessity and virtue. No one questions the fact that our country’s public schools are looking less and less like places of learning and more and more like places of detention (and I don’t mean The Breakfast Club type either).

When you stop and think about it (which few people actually do), our public schools have more in common with our prison system than any parent would care to admit. Most of us are products of the system and will defend its honor and integrity like sufferers of severe Stockholm Syndrome. So let me break it down into a list of glaring similarities that even those of us who went to public school can easily understand.

1. Both School and Prison Take Away Freedom. To get into prison, a person has to be convicted of a crime (although all of us know that prisons are full of people convicted of pretty bogus crimes… just stick with me). Children in school are only guilty of the crime of being children. Since school attendance is compulsory, children, much like criminal prisoners, don’t get to choose whether they get locked up for seven or more hours a day. They are forced to go to school by strict truancy laws until they are at least 16, at which point their youth has already been squandered inside constrictive cinder block walls.

2. Both School and Prison use Security as a Means of Control. Prisons and public schools both use metal detectors, surveillance cameras, police patrols, drug-sniffing dogs, and lock downs to create a facade of greater security. In most elementary schools, there is an emphasis on moving students from location to location in a rigidly ordered manner. The straight line of silent children walking with hands behind their backs look frighteningly like lines of prisoners. The strict codes of conduct used in the majority of schools, as well as the consistent use of handcuffs and pepper spray on unruly high school students, work together to condition young people to the cultural normalcy of over-policing.

Stay in line. Do as you’re told. Don’t make trouble. These are the messages we send to both our prisoners and our school children. But it’s okay. It’s for their own good.

3. Both Schools and Prisons Serve Undesirable Food. The cafeterias in public schools are scarily similar to prison cafeterias, often even sharing the same menus. Unappetizing, bland, processed meals with little nutritional value are the norm in both institutions. And bringing a lunch from home is banned in many school districts. Add in the armed security guards that patrol most public school lunch rooms and a casual observer might not be able to tell the difference.

4. Both Schools and Prisons Enforce Strict Dress Codes. Like prisons, some schools obligate their students to wear uniforms, limiting self-expression, and encouraging a herd mentality that makes control easier (for safety’s sake, of course). But even in schools without required uniforms, strict dress codes are generally in place. Failure to tuck in a shirt tail can land a student in detention. Donning a blouse that doesn’t adequately cover a girl’s shoulders could get her sent home. Sometimes the dress code guidelines are so arbitrary and so strictly detailed, it seems like they are in place just to get students in trouble. In 2008, Gonzales High School in Texas made the national news for requiring dress code violators to wear actual prison jumpsuits. It’s like officials want the students to seem like criminals. Perhaps it makes the policing of students at their own hands seem more justified.

5. Both Students and Prisoners are Tracked. Many prisons use electronic bracelets or other tracking devices to keep track of prisoners’ locations. Many schools are doing the same thing. ID badges with built-in RFID chips can track the location of a child wherever they are wearing it, and many schools require ID badges to be worn during school hours. Some schools have even started using fingerprints and iris scanners to keep track of their prisoners… I mean students.

6. Both Schools and Prisons Have Armed Guards. Often referred to as SROs (school resource officers), most school buildings are patrolled by armed police officers. They are generally uniformed and carry pepper spray, tasers, and batons that they can use on students should the need arise. These officers police hallways and lunchrooms, administer searches of children’s lockers and school bags, and man the TSA-style checkpoints at the entrances to the buildings our children enter to learn.

7. Both Schools And Prisons do not Allow Anger. Although anger is a justifiable emotion toward constrictive and oppressive political structures, neither students nor prisoners have the power to express their emotions. In prison, angry convicts are locked away in solitary confinement, their movements and small remaining freedoms restricted for safety’s sake. In public school, anger is interpreted as a failing of the individual rather than the system that creates it. There, anger is seen as “disruptive behavior” or “cognitive impairment” or a “social or learning disability”. Often the angry student is marginalized by placement in special education classes, enrolled in “alternative schools”, or medicated to control their disruptions, all of which are just differing forms of confinement.

8. Both Students and Prisoners are Forced to Work. The scene of the prison chain gang in striped clothing, hacking away at rocks and debris is one that most people have seen in old films. Today’s prisoner work force looks a little different, with prisoners wearing orange jumpsuits and doing highway clean-up minus the bulky steel chains. Students are often forced to work, too. Sometimes they are forced to work cleaning up school grounds as a disciplinary action. But in some school systems, volunteer work or “community service” is required each year for a passing grade. Interesting to note that “community service” is frequently doled out as punishment to citizens convicted of minor crimes, but our children are only guilty of being kids.

9. Both Schools and Prisons Follow Strict Schedules. A rigid schedule of walking, eating, learning, exercise, and bathroom use is followed in both institutions. It doesn’t matter when you have to pee, or need to stretch your legs, or want a breath of fresh air. Those things can only be done during allotted times defined by those in authority.

10. Both Schools and Prisons Have Zero-Tolerance Policies. Most public schools now have policies of zero-tolerance when it comes to violence, bullying, drug possession, etc. Interestingly, much of the verbiage in our schools’ disciplinary policies come straight from the nation’s “War on Drugs” (which is directly responsible for the vast majority of our country’s prisoners). Zero-tolerance policies require harsher penalties for sometimes minor classroom offenses and often result in law enforcement being called in to handle school disciplinary actions. The result has been what many refer to as the “School-to-prison pipeline”. The policies make criminals out of students, pushing kids out of the classroom and into the criminal justice system at alarming rates. At least the transition will be easy. Those school children have already spent the majority of their lives in a system that matches the penitentiary where they’ll be spending most of the rest of it.

With such dark and intimidating surroundings, focusing on learning becomes difficult. It’s no wonder most kids don’t want to go to school. When you’re treated like a prisoner, it’s easy to feel like one.

About the Author

Alice Jones Webb is a writer, homeschooling mother of four, black belt, autodidact, free-thinker, avid reader, obsessive recycler, closet goth, a bit of a rebel, but definitely not your typical soccer mom. You can usually find her buried under the laundry and also on Facebook, Twitter, and her blog, DifferentThanAverage.com, where she blogs about bucking the status quo.

The Crisis in Education Is That the Super Wealthy Corporate Education System Wants to Destroy Public Schools

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By Diane Ravitch

Source: OpEdNews.com

It has become conventional wisdom that “education is in crisis.” I have been asked about this question by many interviewers. They say something like: “Do you think American education is in crisis? What is the cause of the crisis?” And I answer, “Yes, there is a crisis, but it is not the one you have read about. The crisis in education today is an existential threat to the survival of public education. The threat comes from those who unfairly blame the school for social conditions, and then create a false narrative of failure. The real threat is privatization and the loss of a fundamental democratic institution.”

As we have seen again and again, the corporate education industry is eager to break into U.S. public education and turn it into a free marketplace, where they can monetize the schools and be assured of government subsidization. On the whole, these privatized institutions do not produce higher test scores than regular public schools, except for those that cherry-pick their students and exclude the neediest and lowest performing students. The promotion of privatization by philanthropies, by the U.S. Department of Education, by right-wing governors (and a few Democratic governors like Cuomo of New York and Malloy of Connecticut), by the hedge fund industry, and by a burgeoning education equities industry poses a danger to our democracy. In some communities, public schools verge on bankruptcy as charters drain their resources and their best students. Nationwide, charter schools have paved the way for vouchers by making “school choice” non-controversial.

Yes, education is in crisis. The profession of teaching is threatened by the financial powerhouse Teach for America, which sells the bizarre idea that amateurs are more successful than experienced teachers. TFA — and the belief in amateurism — has also facilitated the passage of legislation to strip teachers of basic rights to due process and of salaries tied to experience and credentials.

Education is in crisis because of the explosion of testing and the embrace by government of test scores as both the means and the end of education. The scores are treated as a measure of teacher effectiveness and school effectiveness, when they are in fact a measure of the family income of the students enrolled in the school. The worst consequence of the romance with standardized testing is that children are ranked, sorted, and assigned a value based on scores that are not necessarily scientific or objective. Children thus become instruments, tools, objects, rather than unique human beings, each with his or her own potential.

Education is in crisis because of the calculated effort to turn it into a business with a bottom line. Schools are closed and opened as though they were chain stores, not community institutions. Teachers are fired based on flawed measures. Disruption is considered a strategy rather than misguided and inhumane policy. Children and educators alike are simply data points, to be manipulated by economists, statisticians, entrepreneurs, and dabblers in policy.

Education has lost its way, lost its purpose, lost its definition. Where once it was about enlightening and empowering young minds with knowledge, exploring new worlds, learning about science and history, and unleashing the imagination of each child, it has become a scripted process of producing test scores that can supply data.

Education is in crisis. And we must organize to resist, to push back, to fight the mechanization of learning, and the standardization of children.

 

Diane Ravitch is a historian of education at New York University. Her most recent book is Reign of Error: The Hoax of the Privatization Movement and the Danger to America’s Public Schools.  Her previous books and articles about American education include: The Death and Life of the Great American School System: How Testing and Choice Are Undermining Education, Left Back: A Century of Battles Over School Reform, (Simon & Schuster, 2000); The Language Police: How Pressure Groups Restrict What Students Learn (Knopf, 2003);The English Reader: What Every Literate Person Needs to Know (Oxford, 2006), which she edited with her son Michael Ravitch. She lives in Brooklyn, New York.