RUMBLE #21Martin Luther King Jr.'s Democratic Socialist Dream

Martin Luther King Jr.'s legacy has been sanitized by mainstream American society, erasing his fierce anti-capitalist and anti-war advocacy. Before he was assassinated, King was forcefully denouncing the "three evils" in America -- racism, militarism and a corrupt economic system -- and arguing that these three evils were all tied together. For this MLK Day episode, Michael Moore shares audio clips and quotes from King that will not be celebrated on the evening news.

How Socialism Can Replace Mass Death as a Tool for Leveling Inequality

By Eve Ottenberg, Truthout | News Analysis

The world is run by an oligarchy of billionaires, as Bernie Sanders recently observed. To take power away from that oligarchy, it is necessary to take some of their wealth, through means like progressive taxation, a maximum income for all citizens, a guaranteed basic income for everyone, stronger unions, slashing the military budget and strengthening the welfare state, meaning free higher education, student debt forgiveness, Medicare for all and other measures. Would these approaches mitigate inequality? They could help, suggest Canadian professors and contributors to Socialist Register 2017 Leo Panitch and Bryan Palmer. Peter Edelman, a former adviser to Robert Kennedy and Bill Clinton, also indicates the potential of some social welfare policies to eradicate inequality in his book, So Rich, So Poor. However, Stanford professor Walter Scheidel, in his recent book The Great Leveler: Violence and the History of Inequality, expresses much less optimism about the potential of social programs to end inequities. Scheidel argues that over thousands of years of human history, the only thing that has ever succeeded at truly equalizing wealth, or that has even led to the large-scale adoption of social welfare policies, is mass death. In particular, he points to the Black Death in the late Middle Ages, history's various violently failed states, Stalin's terror, purges and gulags, the violence of Mao's revolution and two world wars. Scheidel argues that the "only" cure for inequality -- mass death -- is worse than the disease.

But the disease is pretty awful, and there are those who think that socialism, not mass death, might cure it. Scheidel notes that in the early 21st century, the 62 richest people on Earth own as much wealth as the poorer half of humanity, more than 3.5 billion people. And a lot of that poorer half is outright destitute. Scheidel speculates that the creation of predatory, wealth-stealing elites might be hard-wired into our species. So, like Thomas Piketty does in his writings on inequality in Capital in the Twenty-First Century, Scheidel notes that the world wars countered inequality, but he takes the observation much further, into a pessimism that implicitly concludes that since only mass death can effectively create equality, we have to give up on equality. (Incidentally, Scheidel argues that many wars only serve to increase inequality. Not all death equalizes -- only, he says, mass death in certain very specific circumstances.)

However, as Trent University professor Bryan Palmer pointed out in a recent interview with Truthout, the idea that inequality has only ever effectively been lessened "by mass death is indeed pessimistic and highly worrying -- not to mention contentious."

Indeed, so far, the most likely next producer of mass death -- climate change -- will probably be a powerful driver of inequality, with the world's poorer populations being hardest hit. The world is already facing the horrors of pestilence (think cholera in Yemen) and climate-induced calamity, and these conditions will only intensify. "A strong case can be made that inequality will be enhanced by catastrophes of various kinds," Palmer said, "since the truly rich ... can insulate themselves somewhat."

According to Scheidel, after the Black Death wiped out much of the population of medieval Europe, a labor scarcity enabled workers to demand and receive higher wages. State collapse, the modern version of which we have seen in Somalia, has also had equalizing effects, according to Scheidel. In the 20th century, two new violent ways of equalizing elite wealth emerged -- "total war," namely World War I and II, and communist revolutions, particularly in Stalin's Russia and Mao's China, though much of what occurred in both places could better be termed counterrevolution. "Key mechanisms of equalization, such as unionization," Scheidel writes, "public intervention in private wage setting and highly progressive taxation of income and wealth, all first rose to prominence in the context of global war..." and in the context of a communist threat.

However, trade unionism had been growing for decades before global war descended in 1914, and so had socialism. They may have gained ground with the unique conditions of two world wars and a major depression, but they preexisted them, too. "You have to look at the previous activity of socialists, trade unionists and mass suffrage," said York University professor Leo Panitch in a recent interview with Truthout. "You had to mobilize wealth -- in the context of class struggle, and you can't leave that out.... After World War II, you see the accommodation of social democratic governments and the Democratic Party, making the welfare state fit with capital accumulation -- and that couldn't be maintained. If the social democrats had gone further to control capital's escape of wealth taxation -- socialists want to take capital away from capitalists to take away their power -- they might have succeeded."

As for capitalism today, Panitch paraphrases German philosopher Max Horkheimer, to the effect that anyone who speaks of capitalism and not fascism should remain silent. In other words, the one entails the other. For instance, domestic repression and refugee policies are two ferociously brutal features of contemporary capitalist regimes, from Duterte's Philippines to Sheriff Joe Arpaio's "concentration camps" for immigrants in Arizona, to name but two examples. Given capitalism's tilt toward total control and readiness to resort to fascistic, police state methods, Panitch sees "a very bloody future, a Blade Runner future."

Scheidel's mass death thesis is bolstered by massive research into tax and other records spanning millennia. His conclusion, that we're in for growing inequality over the long haul and there's little to be done about it, is, however, undercut by some of his own observations. Even by the author's estimation, inequality is not inevitable. Scheidel allows that three peaceful mechanisms of controlling inequality have been somewhat effective: land reform, debt forgiveness and powerful unions. He also notes the "anomaly" in Latin America in the early 2000s of inequality being significantly and peacefully reduced. This development looks less anomalous when correlated with the region's left-tide-inspired social welfare gains.

Also contradicting this pessimism is the existence of Kerala State in India, home to 35 million people, who have been voting a communist government into power regularly since 1957. Literacy there, according to a recent Washington Post article, is over 95 percent. Communism has peacefully done away with the caste system and, in Kerala, a street sweeper can have major surgery practically for free. With free education and health care, Marxist Kerala has been producing excellent doctors, engineers and scientists for decades. Many immigrate to the Persian Gulf states for higher wages, but many of those migrants eventually return to Kerala. This is only one example, but it and countries that have peacefully attained socialist features, like Bolivia and Ecuador, would seem to undercut the defeatist conclusion that we have to accept inequality and abandon economic freedom because the only alternative is mass death.

Closer to home, we have 103 million poor and near poor people in the US -- including 6 million with no income other than food stamps, as Peter Edelman reported in So Rich, So Poor a few years ago. Meanwhile, billionaires and corporations are now poised to reap tax break bonanzas from a dreadful tax bill put forth by a reactionary, Republican-controlled and donor-owned Congress. Inequality is rampant in the US. Benefits of a modest welfare state are in tatters, and unions have been ravaged. Only truly radical measures -- like a cap on income and wealth and a basic guaranteed income, as has been adopted in Finland, Ontario, Canada, and many European cities -- can wrench around our backward drift. As Edelman's book observed, currently welfare has 4 million participants. Before President Clinton slashed it (whereupon Edelman quit the Clinton administration), it had 14 million.

Given the violent and determined nature of elite predation, how realistic is socialism as a peaceful force for equality? "We should be very modest about the likelihood of achieving socialism," Panitch said. However, he qualified this: "Socialism may be unrealistic, but history is contingent. Wars and revolutions are not chosen, they brew out of decades ... Bolshevik demands in 1917 were not socialism, but bread, land and peace. They weren't proposing to bring down the then liberal government at first."

For Palmer, "socialism is the only alternative." He argues that Scheidel's recognition that progressive reforms were often implemented in contexts of crisis, especially war, and to stave off the threat of communism, only establishes that creating socialism with its insistence on overcoming inequality might actually be easier and less traumatic than in circumstances of constraint. According to Palmer, globalization and advancing conditions in the developing world, as well as technological innovation mean that the possibilities for socialism are now greater than at any time previously. He argues that more and more of the global economy is open to rational, planned development. He observes that, of course, elites will resist. "Yet the [Russian Revolution] was relatively peaceful, and it was a popular, mass supported revolution," which Palmer clearly distinguishes from "the terror of a new ruling caste" under Stalin.

In Latin America, Panitch noted, "reaction is undermining the left tide." But additionally, none of Latin America's current or recent left governments were truly socialist. "Even Chavez made no moves outside of the oil industry to take capital away from the Venezuelan ruling class," Panitch said. "He did nothing to build a more balanced, internally oriented economy. The state was never reformed and remained corrupt. What happened in Bolivia and Ecuador was not a break with capitalism."

Meanwhile inequality in China has soared. "The billionaire class is all the Communist Party members," Panitch observed, adding that even if they want to return to socialism, they're billionaires, and they can't be the force for undoing their own wealth. But Panitch asks whether there are left-wing elements in China who would want real socialism. He observes that the Chinese working class engages in a phenomenal number of strikes, 100,000 ever year, and wonders if it could become a left-wing Solidarność movement. Panitch notes that what is missing from Piketty's book is the issue of inequality of power on the job. Who gives orders and takes them? "Socialism was all about democratizing the workplace, increasing workers' power," he noted. "If we got more equality in World War II, it was because of those working-class, socialist and communist subcultures, not just the war."

If socialism is a real alternative to mass death and to the inequality of mass dispossession, what would it look like? Could the three peaceful programs Scheidel sees as having mitigated inequality in the past function as three legs for socialism to stand on -- land reform, debt forgiveness and powerful trade unionism?

"No, not enough," Panitch said. "Socialism would have to stand on turning finance into a public utility.... A viable socialism would need the building of mass socialist organizations again."

Palmer agrees that simply instating the three "peaceful programs" would not be sufficient, since it would not actually transform capitalism. He noted that, "The problem with [authors] like Piketty and Scheidel, is that they approach inequality as an island unto itself," without recognizing that inequality "is situated within capitalism." Palmer also says that land reform in the Global South will never suffice as a solvent of poverty and destitution. To secure debt forgiveness, he thinks we need a revolutionary challenge to the current global political economy. Regarding trade unions, he says that what is needed is a class struggle unionism, against dispossession across borders. Palmer observes that trade unionism is under assault everywhere in the world. But it is now strongest where wages are lowest, conditions at their worst, and the politics of opposition most acute -- in the Global South. He sums up with the point that socialism requires new organizations. For Palmer, ending capitalism now "is imperative. We're faced with socialism or barbarism ... as Marx once said, commenting on India, human progress must 'cease to resemble that hideous pagan idol, who would not drink the nectar but from the skulls of the slain.'"

Panitch agrees: "Given how ugly and chaotic capitalism is in the world, there will be socialist movements and revolutions in the coming decades."

It will be up to those movements and revolutions to prevent the other types of mass death, those we could be staring in the face any day -- the ones associated with climate change, fascism and nuclear war.

Sanders Will Rock The Convention and Create A Third party

not sure I agree with all this, but certainly an interesting piece...

from the political analyzer:

Sanders has lost the race for the Nomination, and they will be useless future victories in Indiana, Oregon and California.

Bernie has two months to prepare for the assault on the Democratic National Convention and seven months to create a new party, to give a home to millions of American voters, and win the next Presidential Election.

He has to question the nature of the Democratic Party, disassemble the Clintonism and overcome without fear the eight years of Barack Obama.

At this point of the race it should be starting from the mistakes that Sanders has committed to avoid mistakes in the future: 1. He must place a tombstone on the remaining Neoliberalism in its electoral manifesto and in his narration; 2. He must to harshly criticize the bond that the last two Democratic Presidents have had with the unbridled Capitalism; 3. He must return the United States to be a Democracy on the same wavelength of the statements of former President Jimmy Carter; 4. He must begin to speak to the lower classes and abandon the bourgeois narration of the Middle-Class, which led to Clintonism-Blairism; 5. He must carry the Democratic people to the Democratic Party of the origins, to FDR, since the Great Recession that the West has lived since 2008 with the same causes of the Great Depression of 1929: The Deregulation; 6. He must start again from the European Socialism model of sixties without the fear of being accused of populism considered that socialism is healthy populism for excellence; 7. He must work on the language of the Media, the Republicans and the current Democratic Party; 8. He doesn’t propose any cultural revolution but to give the right meaning to the words; 9. He must ‘frighten’ the American people about the seriousness of global warming and the risk of an epochal disaster; 10. He must ‘terrorize’ voters about the prospects of the American economy that increasingly into debt and lost tax revenue because of the large multinationals; 11. He must, in short, sensitize and inform Americans about the seriousness of the historical period we are living; 12. He must make a winning impose of the idea of pacifism reminding the electorate the number of victims caused by the wars which were attended by the United States since the Second World War; 13. He should remind Americans that the United States can not afford 230 years of wars; 14. He must impose the vision that military spending can not be equal to the 90% of World Military Spending; 15. He must urge the Americans to change the modus vivendi and to allocate part of Military Spending in Welfare, Redistribution of Wealth, the Fight against Poverty, the Right to Education; 16. He must start from the last financial deregulation; 17. He should demolish the positivity of the concept of Trickle-Down Economy and Reaganomics; 18. He must rebuild the USA Brand in order to allow the Rest of the World to look at the Country with kindness and admiration rather than fear and hate; 19. He must make the United States the most prosperous Country in the World and not just the richest; 20. He must succeed where Obama has failed in countering the spread of conflict in the Middle East and North Africa, the further impoverishment of the most vulnerable groups, the continued thinning of the Middle-Class, continued economic growth of 1% population, the real unemployment.

From this criticisms:
1. He must found a new party that includes all the Progressive Forces;
2. He must rebuild the Global Progressivism from dialogue with the anti -Neoliberalism Socialist Parties of Western;
3. He must deepen the dialogue with Pope Francis;
4. He must reduce the number of American troops abroad;
5. He must unmask Donald Trump and present it to the American people as an integral part of the establishment;
6. He must be argued that Trump is actually the new version of the Good Old Party;
7. He must pass the frame that the Good Old Party is trying to put a stop to its decline by presenting at the Presidential Elections in a similar way to the European Social-Right Parties;
8. He must explain to the Americans that the Social-Right is an oxymoron and therefore doesn’t exist;
9. He must, rather, speak convincingly to all those Republicans who still remember the former Candidate to the Presidency John McCain, which is doing so much at the Congress with Elizabeth Warren to restore the Glass-Steagall Bill;
10. He – once abandoned the Democratic Party – should avoid confrontation with Clinton considered that his electorate is either monolithic both minority and try to steal votes from her would mean to lose votes from within;
11. He must ignore Clinton and talk to the 43% of Independents who are just waiting for answers;
12. He must establish a new relationship with the African American Community not exclusively based on sporadic endorsments by some famous people;
13; He must make an alliance with the Hispanic Community about their safety and the possibility of entering the United States;
14. He must imagine a Country increasingly multiethnic that can do the cultural synthesis the trump card at the global level;
15. He must make one of the two American continents, starting from friendship close at Vatican City with Evo Morales;
16. He must re-introduce the goodness of the concept of State and cite, for example, Bill Gates regarding ineptitude of private in dealing with the key issues;
17. He must return to give luster to the Unions and push American workers to unite themeselves and to have more and more say in the matter;
18. He must persuade Americans that monetary policy is not a solution to the economic problems but a great opportunity to further enrichment by the American Banking System that in this way impoverish global finance and the rest of World;
19. He should load of responsibility the Americans claimings a better America creates a better World;
20. He must restore hope, dream, memory, beauty, and a good dose of intake awareness to the American people, and promise a second New Deal without the Third World War.

The Century Of The Self Part 4

An incredible
BBC documentary about the use of Freud's theories in the use of propaganda to control the masses. Excellent! Freud's nephew, Edward Bernays, and his "public relations" were instrumental in shaping the consumer mindset of the 20th century.

Part 1 HERE.

The Century of The Self Part 3

An incredible
BBC documentary about the use of Freud's theories in the use of propaganda to control the masses. Excellent! Freud's nephew, Edward Bernays, and his "public relations" were instrumental in shaping the consumer mindset of the 20th century.

Part 1 HERE.

The Century Of The Self - The Engineering of ConsentPart 2 of the BBC Documentary series

part two of the incredible BBC documentary series The Century Of The Self.



Thanks Deborah!

The Century Of The Self A truly incredible BBC Documentary

An incredible
BBC documentary about the use of Freud's theories in the use of propaganda to control the masses. Excellent! Freud's nephew, Edward Bernays, and his "public relations" were instrumental in shaping the consumer mindset of the 20th century.

thanks Deborah!

Is There a Revolution Coming? Americans Finally Realize Global Capitalism Is a Murderous Sham

from TruthDig via Alternet

By Chris Hedges

Popular revulsion for the ruling elite is nearly universal. Are we going to see an uprising?

“Did you ever ask yourself how it happens that government and capitalism continue to exist in spite of all the evil and trouble they are causing in the world?” the anarchist Alexander Berkman wrote in his essay “The Idea Is the Thing.” “If you did, then your answer must have been that it is because the people support those institutions, and that they support them because they believe in them.”

Berkman was right. As long as most citizens believe in the ideas that justify global capitalism, the private and state institutions that serve our corporate masters are unassailable. When these ideas are shattered, the institutions that buttress the ruling class deflate and collapse. The battle of ideas is percolating below the surface. It is a battle the corporate state is steadily losing. An increasing number of Americans are getting it. They know that we have been stripped of political power. They recognize that we have been shorn of our most basic and cherished civil liberties, and live under the gaze of the most intrusive security and surveillance apparatus in human history. Half the country lives in poverty. Many of the rest of us, if the corporate state is not overthrown, will join them. These truths are no longer hidden.

It appears that political ferment is dormant in the United States. This is incorrect. The ideas that sustain the corporate state are swiftly losing their efficacy across the political spectrum. The ideas that are rising to take their place, however, are inchoate. The right has retreated into Christian fascism and a celebration of the gun culture. The left, knocked off balance by decades of fierce state repression in the name of anti-communism, is struggling to rebuild and define itself. Popular revulsion for the ruling elite, however, is nearly universal. It is a question of which ideas will capture the public’s imagination.

Revolution usually erupts over events that would, in normal circumstances, be considered meaningless or minor acts of injustice by the state. But once the tinder of revolt has piled up, as it has in the United States, an insignificant spark easily ignites popular rebellion. No person or movement can ignite this tinder. No one knows where or when the eruption will take place. No one knows the form it will take. But it is certain now that a popular revolt is coming. The refusal by the corporate state to address even the minimal grievances of the citizenry, along with the abject failure to remedy the mounting state repression, the chronic unemployment and underemployment, the massive debt peonage that is crippling more than half of Americans, and the loss of hope and widespread despair, means that blowback is inevitable.

“Because revolution is evolution at its boiling point you cannot ‘make’ a real revolution any more than you can hasten the boiling of a tea kettle,” Berkman wrote. “It is the fire underneath that makes it boil: how quickly it will come to the boiling point will depend on how strong the fire is.”

Revolutions, when they erupt, appear to the elites and the establishment to be sudden and unexpected. This is because the real work of revolutionary ferment and consciousness is unseen by the mainstream society, noticed only after it has largely been completed. Throughout history, those who have sought radical change have always had to first discredit the ideas used to prop up ruling elites and construct alternative ideas for society, ideas often embodied in a utopian revolutionary myth. The articulation of a viable socialism as an alternative to corporate tyranny—as attempted by the book “Imagine: Living in a Socialist USA” [4]and the website Popular Resistance —is, for me, paramount. Once ideas shift for a large portion of a population, once the vision of a new society grips the popular imagination, the old regime is finished.

An uprising that is devoid of ideas and vision is never a threat to ruling elites. Social upheaval without clear definition and direction, without ideas behind it, descends into nihilism, random violence and chaos. It consumes itself. This, at its core, is why I disagree with some elements of the Black Bloc anarchists. I believe in strategy. And so did many anarchists, including Berkman, Emma Goldman, Pyotr Kropotkin and Mikhail Bakunin.

By the time ruling elites are openly defied, there has already been a nearly total loss of faith in the ideas—in our case free market capitalism and globalization—that sustain the structures of the ruling elites. And once enough people get it, a process that can take years, “the slow, quiet, and peaceful social evolution becomes quick, militant, and violent,” as Berkman wrote.“Evolution becomes revolution.”

This is where we are headed. I do not say this because I am a supporter of revolution. I am not. I prefer the piecemeal and incremental reforms of a functioning democracy. I prefer a system in which our social institutions permit the citizenry to nonviolently dismiss those in authority. I prefer a system in which institutions are independent and not captive to corporate power. But we do not live in such a system. Revolt is the only option left. Ruling elites, once the ideas that justify their existence are dead, resort to force. It is their final clutch at power. If a nonviolent popular movement is able to ideologically disarm the bureaucrats, civil servants and police—to get them, in essence, to defect—nonviolent revolution is possible. But if the state can organize effective and prolonged violence against dissent, it spawns reactive revolutionary violence, or what the state calls terrorism. Violent revolutions usually give rise to revolutionaries as ruthless as their adversaries. “Whoever fights monsters should see to it that in the process he does not become a monster,” Friedrich Nietzsche wrote. “And if you gaze long enough into an abyss, the abyss will gaze back into you.”

Violent revolutions are always tragic. I, and many other activists, seek to keep our uprising nonviolent. We seek to spare the country the savagery of domestic violence by both the state and its opponents. There is no guarantee that we will succeed, especially with the corporate state controlling a vast internal security apparatus and militarized police forces. But we must try.

Corporations, freed from all laws, government regulations and internal constraints, are stealing as much as they can, as fast as they can, on the way down. The managers of corporations no longer care about the effects of their pillage. Many expect the systems they are looting to fall apart. They are blinded by personal greed and hubris. They believe their obscene wealth can buy them security and protection. They should have spent a little less time studying management in business school and a little more time studying human nature and human history. They are digging their own graves.

Our shift to corporate totalitarianism, like the shift to all forms of totalitarianism, is incremental. Totalitarian systems ebb and flow, sometimes taking one step back before taking two steps forward, as they erode democratic liberalism. This process is now complete. The “consent of the governed” is a cruel joke. Barack Obama cannot defy corporate power any more than George W. Bush or Bill Clinton could. Unlike his two immediate predecessors, Bush, who is intellectually and probably emotionally impaired, did not understand the totalitarian process abetted by the presidency. Because Clinton and Obama, and their Democratic Party, understand the destructive roles they played and are playing, they must be seen as far more cynical and far more complicit in the ruination of the country. Democratic politicians speak in the familiar “I-feel-your-pain” language of the liberal class while allowing corporations to strip us of personal wealth and power. They are effective masks for corporate power.

The corporate state seeks to maintain the fiction of our personal agency in the political and economic process. As long as we believe we are participants, a lie sustained through massive propaganda campaigns, endless and absurd election cycles and the pageantry of empty political theater, our corporate oligarchs rest easy in their private jets, boardrooms, penthouses and mansions. As the bankruptcy of corporate capitalism and globalization is exposed, the ruling elite are increasingly nervous. They know that if the ideas that justify their power die, they are finished. This is why voices of dissent—as well as spontaneous uprisings such as the Occupy movement—are ruthlessly crushed by the corporate state.

“... [M]any ideas, once held to be true, have come to be regarded as wrong and evil,” Berkman wrote in his essay. “Thus the ideas of the divine right of kings, of slavery and serfdom. There was a time when the whole world believed those institutions to be right, just, and unchangeable. In the measure that those superstitions and false beliefs were fought by advanced thinkers, they became discredited and lost their hold upon the people, and finally the institutions that incorporated those ideas were abolished. Highbrows will tell you that they had ‘outlived’ their ‘usefulness’ and therefore they ‘died.’ But how did they ‘outlive’ their ‘usefulness’? To whom were they useful, and how did they ‘die’? We know already that they were useful only to the master class, and they were done away with by popular uprisings and revolutions.”

The Question of Socialism (and Beyond!) Is About to Open Up in These United States

via Dangerous Minds

 

Gar Alperovitz is the Lionel R. Bauman Professor of Political Economy at the University of Maryland and co-founder of the Democracy Collaborative. He is the author of the forthcoming book What Then Must We Do?: Straight Talk About the Next American Revolution (Chelsea Green, May Day 2013). Reposting this from Truthout.

With Americans’ interest in socialism rising, we need to seriously consider alternative designs to the current system, argues Alperovitz, in this practical critique of some known models.

Little noticed by most Americans, Merriam Webster, one of the world’s most important dictionaries, announced a few months ago that the two most looked-up words in 2012 were “socialism” and “capitalism.”

Traffic for the pair on the company’s website roughly doubled from the year before. The choice was a “kind of no-brainer,” observed editor at large, Peter Sokolowski. “They’re words that sort of encapsulate the zeitgeist.”

Leading polling organizations have found converging results among younger Americans. Two recent Rasmussen surveys, for instance, discovered that Americans younger than 30 are almost equally divided as to whether capitalism or socialism is preferable. Another Pew survey found those aged 18 to 29 have a more favorable reaction to the term “socialism” by a margin of 49 to 43 percent.

Note carefully: These are the people who will inevitably be creating the next American politics and the next American system.

As economic failure continues to create massive social and economic pain and a stalemated Washington dickers, search for some alternative to the current “system” is likely to continue to grow. It is clearly time to get serious about a different vision for the future. Critically, we need to be far more sophisticated about what a meaningful “systemic design” that might undergird a new direction (whether called “socialism” or whatever) would entail.

Classically, the central idea undergirding various forms of “socialism” (and there have been many, many forms, some of which use the terminology, some not) is democratic ownership of “the means of production,” or “capital,” or more simply, “productive wealth.” Quite apart from questions of exploitation, systemic dynamics (and “contradictions”), the core idea is simple and straightforward: Those who own wealth - and the corporations that operate it - have far more power to control any system than those who don’t.

In a nation in which a mere 400 people own more wealth than the bottom 180 million together, the point should be obvious. What is new in our time in history is that the traditional compromise position - namely progressive, or social democratic or liberal politics - has lost is capacity to offset such power even in the modest (compared, for instance, to many European states) ways the American welfare state once represented. Indeed, the emerging direction is to cut back previous gains in many areas - not to sustain or enlarge them. Even Social Security is now on the table for cuts.

Perhaps the most important reason for the decline of the traditional reform option is the decline of labor: Union membership has steadily decreased from roughly 35 percent of the labor force in 1954, to 11.3 percent now - a mere 6.6 percent in the private sector.

Along with this decay, and give or take an exception here and there, major trends in income and wealth, in civil liberties, in ecological devastation (and the release of climate-changing gases), in poverty and many other important indicators have been “going South” for several decades.

It is, accordingly, not surprising that dictionary look-ups and polls show interest in “something else.” If, as is likely, the trends continue, that interest is also likely to increase. But what, specifically, might that “something else” entail? And is there any reason to hope - even as interest in the word “socialism” grows in the abstract - that we might move from where we are to “some other system” that might nurture equality, liberty, ecological sustainability, even global peace, more than the current decaying one we now have?

New Models of Socialist Structures

The classic model of socialism involved state (national) ownership of most large-scale capital and industry. But it is now clear to most observers that the concentration of such ownership in the state also commonly brings with it a concentration of political power as well; hence, the model can be detrimental to democracy as well as liberty (to say nothing, in real world experience, of the environment).

Alternative places to locate ownership have been suggested by different traditions: in cooperatives, in worker-owned firms, in municipalities, in regions, even in neighborhoods. Some of the advantages and challenges involved in the various forms are also well-known:

Starting at the ground level, there appear in virtually all studies to be very good reasons - for small and medium-size firms - to arrange ownership through cooperatives and worker-owned and self-managed enterprises. This is where direct democratic participation is (or can be) strongest, where a new culture can be developed and where a very different vision of work can evolve. Very solid proposals have been offered in such books as John Restakis’ Humanizing the Economy: Co-operatives in the Age of Capital and Richard Wolff’s Democracy at Work: A Cure for Capitalism (on what he calls “worker self-directed enterprises”).

On the other hand, for larger, significant-scale enterprises, worker-ownership may not solve some critical problems. When worker-owned large firms operate in a market-based system (as proposed by some progressive analysts), groups of workers in such firms may develop narrow interests that are not necessarily the same as those of the society as a whole. (It may be in their interests, for instance, to pollute the community’s air and water rather than pay cleanup costs - especially when the firm faces stiff competition from other private or worker-owned companies.) Studies of worker-owned plywood companies in the Northwest found that all too easily workers developed narrow “worker-capitalist” attitudes (and conservative political views) as they competed in the marketplace. Nor does such ownership solve problems of inequality: Workers who “own” the garbage companies are clearly on a different footing, for instance, than specific groups of workers lucky enough to “own” the oil industry.

Often here - and in several other variants of socialist ideas - it is hoped that a new culture (or ideology) or progressive forms of taxation, regulation and other policies can offset the underlying tendencies of the models. However, there is reason to be skeptical of “after-the-fact” remedies that hope to counter the inherent dynamics of any model, since political power and interest group influence often follow from ownership irrespective of good intentions and the hope that progressive political ideals, or ideology, will save the day. If the attitudes nurtured by the plywood co-ops turn out to be the norm, then new worker-owned companies would likely not generate strong support for regulations and taxation that help society at large but restrict or tax their own firm.

Let me stress that we simply do not know whether this might or might not be the case. It is, however, a mistake to assume either that socially responsible regulations can be “pasted on” to any institutional substructure (especially if they create costs to that substructure), or that institutions will automatically generate a sufficiently powerful cooperative culture and institutional power dynamic in favor of regulations and taxation even if it adds costs to their own institution and is detrimental to the material interests of those involved.

To get around some of these problems, some theorists have proposed democratically managed enterprises that are nonetheless owned by the broader society through one or another structural form. Although workers in the “self-managed” firm could gain from greater efficiency and initiative, major profits would go to the society as a whole. Still, note that in such cases, too, the incentive structure of the competitive market tends to create incentives to reduce costs - for instance, by externalizing environmentally destructive wastes. Also, when there are economies of scale, market-based systems generate very powerful pressures to adopt new technologies and prioritize growth (or lose out to other firms that also are under pressure to grow and adopt new technologies) - and this dynamic, too, runs counter to the needs of an ecologically sustainable future.) John Bellamy Foster’s The Ecological Revolution, among other efforts, gives depth to the ecological foundational arguments further systemic designs must consider.

Designing for Community

We are clearly at the exploratory stage in connection with these matters, but the really important question is clearly whether a new model might inherently generate outcomes that do not require “after-the-fact” policy fixes or attempted fixes it is hoped the political system will supply. Especially since such “fixes” come out of a larger culture, the terms of reference of which are significantly set by the underlying economic institutions, and if these develop competitive and growth-oriented attitudes, the outcomes are likely to be different from those hoped for by progressive proponents. Lest we jump to any quick conclusions, it is again important to be clear that no one has as yet come up with a serious “model” that might both achieve efficiencies and self-directed management - and also work to create an equitable, ecologically sustainable larger culture and system. All have flaws.

Some of the problems and also some of the design features of alternatives, however, begin to suggest some possible directions for longer-term development:

For instance, a third model that has traditionally had some resonance is to locate primary ownership of significant scale capital in “communities” rather than either the state or specific groups of workers - i.e. in geographic communities and in political structures that are inclusive of all the people in the community. (By definition geographic communities inherently include not only the workers who at any moment in time may only include half the population, but also stay-at-home, child-rearing males or females, the elderly, the infirm, children and young people in school - in short the entire community.)

Community models also inherently “internalize externalities” - meaning that unlike private enterprise or even worker-owned companies that may have a financial interest in lowering costs by not cleaning up environmentally destructive practices, community-owned firms are in a different position: If the community chooses to continue such practices, it is polluting itself, a choice it can then examine from a comprehensive perspective - and in a framework that does not inherently pose the interests of the firm against community-wide interests.

Variations on this model include the “municipal socialism” that played so important a role in early 20th century American socialist politics - and is still evident in more than 2,000 municipally owned utilities, a good deal of new municipal land development and many other projects. “Social ecologist” Murray Bookchin gave primary emphasis to a municipal version of the community model in works like Remaking Society: Pathways to a Green Future, and Marxist geographer David Harvey has begun to explore this option as well. (As Harvey emphasizes, any “model” would likely also have to build up higher level supporting structures and could not function successfully were it left to simply float in the free market without some larger supporting system.)

Current suggestive practical developments in this direction include a complex or “mixed” model in Cleveland that involves worker co-ops that are linked together and subordinated to a community-wide, nonprofit structure - and supported by something of a quasi-planning system (directed procurement from hospitals and universities that depend in significant part on public financial support). An earlier model involving joint community and worker ownership was developed by steelworkers in Youngstown, Ohio, in the late 1970s.

The Jewish theologian Martin Buber also offered a community-oriented variation based on cooperative ownership of capital in one geographic community. He saw this “full cooperative” (and confederations of such communities) as an answer the problems both of corporate capitalism and of state socialism. Buber’s primary practical experimental demonstration was the Israeli cooperative commune (kibbutz), but the principle might well be applied in other forms. Karl Marx’s discussion of the Paris Commune (and of the Russian village commune or mir) is also suggestive of possibilities in this direction.

In the various community models there is also every reason to expect that specific communities will develop “interests” that may or may not be the same as those of the society as a whole. (Again think of communities located on top of important natural resources versus others not so favored.) The formula based on community ownership, however, may have a potential advantage that might under certain circumstances - and with clear intent - help at least partly offset the tendency for any structural form to produce narrow interest-group ideas and power. This is the simple fact that a fully inclusive structure that nurtures ideals of “community” - as opposed to ideas of individual ownership, on the one hand, or worker-group ownership of specific firms, on the other - may offer greater possibilities for building a common culture of community, one in which norms of equal treatment and common interest are inherently generated by the structural design itself (at least within communities and possibly beyond.)

To the extent this is so, or could be nurtured, a systemic design based on communities (or joint worker-community ownership) might both allow for decentralization and also for the generation of common values. A subset of issues also involves smaller scale geographic community ownership, in the form of neighborhoods. And such a model might also include a mix of smaller scale worker-owned and cooperative forms, and even (larger scale) state and nationally owned public enterprise as well - a structural form that is now far more common and efficient in many countries around the world than is widely understood.

Questions of Scale

Social ownership by neighborhoods, municipalities, states, and, of course, nations (all with or without some formula of “joint” worker ownership) are not the only models based on the fact that geography is commonly inherently inclusive of all parties - and therefore potentially capable of helping nurture inclusive norms and inclusive cultures. A final formula (for the moment) for significant scale and ultimately large industry is also based on geography, but at a different level still. This attempts to resolve some of these problems (and that of genuine democratic participation) by defining the key unit as a region, a formula urged by the radical historian, the late William Appleman Williams, as especially appropriate to a very large nation like the United States. It is not often realized how very different in scale the United States is from most European nations: Germany, for instance, can be tucked into a geographic area the size of Montana. Nor have many faced the fact that our current 315 million-person population is likely to reach 500 million over coming decades (and possibly a billion by the end of the century, if the US Census Bureau’s high estimate were to be realized.) During the Depression, various regional ownership models like the Tennessee Valley Authority were proposed, some of which were far more participatory and democratic in their design than the model that is currently in place. Legislation to create seven large-scale, publicly-owned regional efforts was, in fact, supported by the Roosevelt Administration at certain points in time.

Many other variations, of course, also have been proposed. The Parecon model, for instance, would attempt to replace a system of market exchanges with a system in which citizens would iteratively rank their preferences for consumer goods along with proposed amounts of proffered labor time. Proposals, like that of David Schweickart in After Capitalism, pick up on forms of worker self management, but also emphasize national ownership of the underlying capital. Seth Ackerman, in a recent essay for Jacobin, urges a worker-controlled model, but stresses the need for independent sources of publicly controlled investment capital. Other thinkers, like Michael Leobowitz in his book, The Socialist Alternative, have taken inspiration from Latin America’s leftward movement, and especially from Venezuela, to articulate a participatory vision of socialism rooted in democratic and cooperative practices. Joel Kovel in The Enemy of Nature argues that the impending ecological crisis necessitates a fundamental change away from the private ownership of earth’s resources.

And, of course, the question of planning versus markets needs to be put on the list of design challenges. Planning has its own long list of challenges - including, critically, who controls the planners and whether participatory forms of planning may be developed drawing on smaller scale emerging experience and also on a much more focused understanding of what needs to be planned and what ought to be independent of public direction. (Also how the market can be used to keep a planning system in check.)

As noted, there is also the question of enterprise scale - a consideration that suggests possible mixes of different forms of social ownership: where to locate the ownership and control of very large scale firms is one thing; very small another; and intermediate still another. Most “socialist” models these days also allow for an independent sector that includes small independent capitalist firms, especially in the innovative high-tech sector.

Related to all this is the question of function: The development and management of land, for instance, is commonly best done through a geographic institution - i.e. a neighborhood or municipal land trust. Public forms of banking and finance tend also to be best anchored in (though operated independently of) cities, states and nations. Though medical practices must be local, social or socialized health systems tend to work best in areas that include large populations - i.e. states or nations. In some cases, quite apart from efficiency considerations, ecological considerations make regions especially appropriate. (One of the rationales, originally, for the Tennessee Valley Administration had to do with managing a very challenging river system.)

On the Ground Now

Finally, there is much to learn from models abroad - particularly Mondragon, on the one hand, and the worker-cooperative and other networks in the Emilia Romagna region of Italy, on the other. The first, Mondragon, has demonstrated how an integrated system of more than 100 cooperatives can function effectively (and in areas of high technical requirement) - and at the same time maintain an extremely egalitarian and participatory culture of institution control. The Italian cooperatives have demonstrated important ways to achieve “networked” production among large numbers of small units - and further, to use the regional government in support of the overall effort. Though the experience of both is extraordinary, simple extrapolations may or may not be possible: Both models, it is also important to note, developed out of historical contexts that helped create intense cultural and political solidarity - contexts also of extraordinary repression by fascist regimes, Franco in Spain, Mussolini in Italy. Finally, although the Emilia Romagna cooperatives are effective in their use of state policy, both models are best understood as institutional “elements” that may contribute to a potential national solution. Neither claims to, or attempts to, develop a coherent overall “systemic” design for a nation.

These various abstract considerations come down to earth when one realizes that there is far more going on, practically, on the ground related to the ownership forms than most people realize - a great deal that is not covered by the increasingly hobbled and financially constrained press. For a start, around 130 million Americans - 40 percent of the population - are members of one or another form of cooperative, a traditional collective ownership form that now includes large numbers of credit unions, agricultural co-ops dating back to the 1930s, electrical co-ops prevalent in many rural areas, insurance co-ops, food co-ops, retail co-ops (such as the outdoor recreational company REI and the hardware purchasing cooperative ACE), health-care co-ops, artist co-ops and many, many more.

There are also many, many worker-owned companies structured in ways different from traditional co-ops - indeed, around 11,000 of them, involving 10.3 million people, in virtually every sector, some very large and sophisticated. Technically, these companies are structured as ESOPs (Employee Stock Ownership Plans) - and in fact 3 million more individuals are involved in worker-owned companies of this kind than are members of unions in the private sector. (Though there have been a variety of problems with this form, there has also been evolution with greater worker control and also experiments with unionization that in the future might suggest important additional possibilities.) Finally and critically, the United Steelworkers have put forward a new direction in union-worker co-ops.

There are also thousands of “social enterprises” that use democratized ownership to make money and use both the money and the enterprise itself to achieve a broader social purpose. By far the most common social enterprise is the traditional Community Development Corporation, or CDC. Nearly 5,000 have long been in operation in almost every US city of significant size. For the most part, CDCs have served as low-income housing developers and incubators for small businesses. Early on in the 50-year history of the movement, however, a different, larger vision was in play - one that is still present in some of the more advanced CDC efforts and one that suggests additional possibilities for the future.

Still another form of democratized ownership involves growing numbers of “land trusts” - essentially neighborhood or municipal corporations that own housing and other property in ways that prevent gentrification and turn development profits into support of low- and moderate-income housing. One of the best known is the Champlain Housing Trust in Burlington, Vermont, which traces its modest beginnings to the early 1980s and now provides accommodation for more than 2,000 households. Hundreds of such collective ownership efforts now exist, and new land trusts are now being established on an expanding, ongoing basis in diverse contexts and cities all over the country.

Since 2010, twenty states have also considered legislation to establish public banks like that of North Dakota, which has operated with strong public support for more than nine decades. Approximately 20 states have considered legislation to establish single-payer health-care plans. Nor should we forget that the United States government de facto nationalized General Motors and AIG, one of the largest insurance companies in the world, during the recent crisis. It started selling them back once the profits began to roll, but in future crises, different outcomes might be ultimately achieved if practical experiments at the local and state level begin to create experiences that might be generalized to national models when the time is right - especially if the current system continues to decay and deteriorate. (Many of the national models that became the core programs of the New Deal were incubated in the state and local “laboratories of democracy” in the decades prior to the time national political possibilities opened up).

At this stage of development, there is every reason to experiment with many forms - a “community-sustaining” direction that I have suggested might be called a “Pluralist Commonwealth” to emphasize the plurality of common or democratized wealth-holding efforts.

Getting Serious

I obviously do not hope in this brief sketch to try to offer a fully developed alternative. My goal is much simpler: First, to suggest that the questions classically posed by the word “socialism” that is now coming back into public use need to be discussed and debated by a much broader group than has traditionally been concerned with these issues; and second, to suggest further that if one looks closely there is evidence that some of the potential real world elements of a solution may be developing in ways that might one day open the way to a very American and very populist variant (whether called “socialist” or not). It is time, accordingly, to discuss the deeper design issues carefully and thoughtfully and in ways that involve a much larger share of the very large numbers of people, beyond the traditional left, who the polls and dictionary inquiries suggest may be interested in these questions.

Even as we learn more and more about the various forms and their positive and negative features and tendencies, hopefully we can engage in a far-reaching and thoughtful debate about how a new model might be created that is both systemically sophisticated and also appropriate to American culture and traditions - a model that nurtures democracy and a culture of inclusiveness and ecological sanity. Many serious and committed people on the left have been struggling with these issues and keeping the critical questions alive for decades. Even though the way forward, politically, is obviously daunting, difficult and uncertain, it is time to widen the dialogue in ways that include the millions of Americans who now seem increasingly open to the challenge.

Nor should the pessimism of the moment undercut what needs to be done: Anyone looking at Latin America 30 years ago might easily have been judged foolish to think change could occur - and that debate concerning these kinds of questions was important. Yet even during and through the pain - and the torture and dictatorship - new beginnings somehow were made in many areas and by many people. Our own course may be difficult, but easy pessimism is an all-too-common escape mechanism to avoid responsibility. It is also comforting: If one buys the judgment that nothing can ever be done, that it is impossible, one has an excuse not to try and also not to try to reach out to others. The fact is the failings of the present system are themselves forcing more and more people to explore new ideas and develop new experiments and new political efforts.

The important points to emphasize are three: [1] There is openness in the public, and especially among a much, much broader group than many think, to discussing these issues - including even the word “socialism;” [2] It is accordingly time to get very serious about some of the challenging substantive and theoretical issues involved; and [3] There are also many on-the-ground experiments, and projects and developments that suggest practical directions that are under way, but also that a new politics (whatever it is called) might begin to build upon them if it got serious.

Posted here with the permission of Truthout and Professor Gar Alperovitz.

Gar Alperovitz is the Lionel R. Bauman Professor of Political Economy at the University of Maryland and co-founder of the Democracy Collaborative. He is the author of the forthcoming What Then Must We Do?: Straight Talk About the Next American Revolution (Chelsea Green, May Day 2013).

 



 

Below, Professor Alperovitz addresses the person sitting in your chair about the future of America:

 

Thank You Richard Metzger

Karl Marx is Still Correct Sunday Sermon

Nobel economist Michael Spence, working at the behest of the Council on Foreign Relations, has co-authored a startling new paper with NYU’s Sandile Hlatshwayo. The two did an enormous amount of number crunching and analyzing of how the US economy has been structured for the past 20 years, and in particular, they examined employment trends. It was not a pretty picture that emerged from all of those details.

Well, I guess that would all depend upon which side of the fork you’re on, wouldn’t it?

As the output and productivity of the American worker increased—a LOT, I should add—during the past two decades, jobs still continued to be outsourced to other countries with cheaper labor pools, and fewer opportunities for economic advancement presented themselves for many Americans. All the while, the $$$ for all of that increased productivity didn’t go to the worker bees themselves, it went to the top, to the capitalists and investors class. To parasites like Mitt Romney and his buddies at Bain Capital.

The CFR report’s conclusions are particularly grim for people who have found themselves slipping out of the middle class towards precarious lives and who feel hopeless to do anything about it, but it’s Marxism 101 for the economic literate.

It’s a race to the bottom and “tag” you’re it!

From Reuters:

The take-away is this: Globalization is making U.S. companies more productive, but the benefits are mostly being enjoyed by the C-suite. The middle class is struggling to find work, and many of the jobs available are poorly paid.

Here’s how Mr. Spence and Ms. Hlatshwayo put it: “The most educated, who work in the highly compensated jobs of the tradeable and nontradeable sectors, have high and rising incomes and interesting and challenging employment opportunities, domestically and abroad. Many of the middle-income group, however, are seeing employment options narrow and incomes stagnate.”

Mr. Spence notes the benefit to consumers of globalization: “Many goods and services are less expensive than they would be if the economy were walled off from the global economy, and the benefits of lower prices are widespread.” He also points to the positive impact of globalization, particularly in China and India: “Poverty reduction has been tremendous, and more is yet to come.”

I’m sure Americans living in “right to work” states are just jumping for joy to be competing with wage-earners in China and India.



Free trade and the free flow of capital means lower prices for the consumer, true, but when someone in China or India is doing that very same computer programming job that used to be your job in the midwest—information workers will have the most precarious jobs of all moving forward—it’s not like you’ll be able to afford much more than rice and beans at the Wal-Mart anyway.

Yes, there’s a high cost to low price. The two are pretty well interconnected, as we’ve seen, but this is what the “free market” is supposed to do, silly. And don’t forget, it was Wal-Mart that put the local shops out of business to begin with.

Karl Marx predicted all of this. ALL of it.

He’s the most accurate prophet in history, with a record a helluva lot better than Nostradamus!

And to all of the naysayers who claim that a “command economy” doesn’t work, I present to you Wal-Mart itself, the most successful example of a command economy the world has ever seen!

Mr. Spence’s paper should be read alongside the work that David Autor, an economist at the Massachusetts Institute of Technology, has been doing on the impact of the technology revolution on U.S. jobs. Mr. Autor finds that technology has had a “polarizing” impact on the U.S. work force — it has made people at the top more productive and better paid and hasn’t had much effect on the “hands-on” jobs at the bottom. But opportunities and salaries in the middle have been hollowed out.

Taken together, here’s the big story Mr. Spence and Mr. Autor tell: Globalization and the technology revolution are increasing productivity and prosperity. But those rewards are unevenly shared — they are going to the people at the top in the United States, and enriching emerging economies over all. But the American middle class is losing out.

It may seem surprising that it takes a Nobel laureate and sheaves of economic data to reach this conclusion. But the analysis and its provenance matter, because this basic truth about how the world economy is working today is being ignored by most of the politicians in the United States and denied by many of its leading business people.

Here’s where it gets much grimmer, as the article’s author, Chrystia Freeland (who has been the Global Editor-at-Large of Reuters since 2010) tells of a recent breakfast at the CFR that she moderated. The speaker that morning was Randall Stephenson, chief executive of AT&T.

If this is the mindset of the leaders of corporate America today, we’re doomed:

One of the Council of Foreign Relations members in the audience was Farooq Kathwari, the chief executive of Ethan Allen, the furniture manufacturer and retailer. Mr. Kathwari is a storybook American entrepreneur. He arrived in New York from Kashmir with $37 in his pocket and got his start in the retail trade selling goods sent to him from home by his grandfather.

He asked Mr. Stephenson: “Over the last 10 years, with the help of technology and other things, we today are doing about the same business with 50 percent less people. We’re talking of jobs. I would just like to get your perspectives on this great technology. How is it going to overall affect the job markets in the next five years?”

Mr. Stephenson said not to worry. “While technology allows companies like yours to do more with less, I don’t think that necessarily means that there is less employment opportunities available. It’s just a redeployment of those employment opportunities. And those employees you have, my expectation was, with your productivity, their standard of living has actually gotten better.”

HUH? Redeployment of employment opportunities? What the fuck IS this guy talking about?

I recently heard a radio report that indicated that there is ONE factory employing around 15 people in Japan that’s responsible for nearly 80% of the world’s output of a certain sized HD screen. Consider how many people would have worked at a Magnavox television plant in the mid-fifties. Where were those employment opportunities ultimately “redeployed?”

Cinnabon?

Bob Evans?

Starbucks?

7-Eleven?

With advanced automation, robotics and so forth, the American worker always was going to become obsolete in the long run, but the speed with which it is happening has gone from a trot to full gallop since the early 90s. Stephenson’s contention that standards of living have improved is ludicrous. Perhaps for him and for all the Cuban cigar-smoking fatcats at the country club in Westchester, but what about the rest of us?

Maybe the all-powerful, wise and benevolent free market will help us?!?!

(Sorry all of that cigar smoke is making me *cough*)

Mr. Spence’s work tells us that simply isn’t happening. “One possible response to these trends would be to assert that market outcomes, especially efficient ones, always make everyone better off in the long run,” he wrote. “That seems clearly incorrect and is supported by neither theory nor experience.”

Not to take anything away from Mr. Spence and Ms. Hlatshwayo, but there was this famous book written by a Mr. Marx and a Mr. Engels—two of the most dangerous minds in history—a hundred and fifty-some years ago that predicted all of this shit with amazing, laser-like accuracy.

Mr. Spence says that as he was doing his research, he was often asked what “market failure” was responsible for these outcomes: Where were the skewed incentives, flawed regulations or missing information that led to this poor result? That question, Mr. Spence says, misses the point. “Multinational companies,” he said, “are doing exactly what one would expect them to do. The resulting efficiency of the global system is high and rising. So there is no market failure.”

Okay, stop for a second. Read that last paragraph again, won’t you? Now read it a third time.

Mr. Spence is telling us that global capitalism is working, but that the American middle class is losing out anyway.

Yep, exactly like a certain Mr. Marx predicted would happen. What remains to be seen is how long it takes for the average American to wake up to what’s going on, when the elites are so hellbent on trying to keep them as confused as possible. Less sophisticated people can be forgiven for falling for conspiracy theories, when the REAL action is right out in the open: No one ever thinks to look there!

Mr. Spence admits he has no easy answers. American politicians are focused on a budget debate that is superficial, premature and ultimately about something pretty easy to figure out. Instead, we should all be working on the much bigger problem of how to make capitalism work for the American middle class.

Karl Marx had the answer to that, too: It’s called Socialism!

Why does France’s new Socialist President strike fear into the hearts of the elites?

from Richard Metzger at DangerousMinds:

Hearty congratulations to the entire country of France for having the good sense to elect a Socialist president, François Hollande, and for kicking that pompous dickhead Sarkozy to the curb.

It’s not like the “Socialist” part—or even President-Elect François Hollande himself for that matter—got much play in the initial reports in the American media, although “Farewell Monsieur President!” and “Goodbye Sarkozy!” headlines were in abundance (I’d have gone with something like “France tells ‘President of the rich’ to piss off, elects Socialist”). Hollande will be the country’s first Socialist leader since François Mitterrand (the Republic’s longest-serving president) left office in 1995. It was Hollande’s ex-wife, Socialist politician Ségolène Royal, who was defeated by Nicolas Sarkozy in 2007.

MSNBC, not mentioning Hollande in the headline, and under a picture of a dejected looking Sarkozy, natch, called the President-Elect “unassumming.” When reporters did get around to mentioning Hollande by name, it was normally to mention that he was a “socialist lite” or a “moderate.”

By American political standards? That’s a pretty meaningless and worthless comparison, if you ask me.

To take the President-Elect at his own word, his win represents “a new departure for Europe and hope for the world” because “Europe is watching us, austerity can no longer be the only option.” I personally like the way that sounds, but Lynn Parramore, writing at AlterNet fears that Hollande will end up being a “marshmallow” who talks big and then lets monied interests walk all over him (where have we seen that happen before?). She also describes him as “more like an American centrist Democrat than a Bush-style right-winger,” but I’d take that with a grain of salt (see below).

Nabila Ramdani bucked the trend writing in The Independent, calling Hollande a “fiercely left-wing leader” who would “strike fear into the hearts of France’s rich” and who should not be written-off before he even takes office on May 17th.

The 57-year-old Socialist has openly admitted that he “does not like the rich” and declared that “my real enemy is the world of finance”. This means taxing the wealthy by up to 75 per cent, curtailing the activities of Paris as a centre for financial dealing, and ploughing millions into creating more civil service jobs.

Add an explicit threat to renegotiate the euro pact to replace austerity with “growth-creating” spending, and you have one of the most vehemently left-wing programmes in recent history.

BUT… There’s always a “but” isn’t there? France is broke and mired deeply in debt. Servicing the country’s outstanding debt is the second item of the government’s yearly budget, right below healthcare:

Caution is justified, though one thing Mr Hollande will not repeat is the disastrous tax-and-spend policies introduced by France’s last Socialist President, François Mitterrand, in 1981. He was soon forced into a humiliating U-turn, and into sharing power with the right as the Communists quit his cabinet in protest.

In contrast, Mr Hollande will focus on solving the euro crisis and reversing a Gallic economic decline widely blamed on a failed capitalist system, and particularly a rotten banking sector.

A summary of Holland’s policies and proposals, according to Wikipedia, demonstrates just how very little a President Hollande would have in common with “an American centrist Democrat” (no matter what Sean Hannity might think!)

Foreign policy: supports the withdrawal of French troops present in Afghanistan by the end of 2012.

European politics: aims to conclude a new contract of Franco-German partnership and he advocates the adoption of a Directive on the protection of public services. Proposes closer Franco-German partnership: “an acceleration of the establishment of a Franco-German civic service, the creation of a Franco-German research office, the creation of a Franco-German industrial fund to finance common competitiveness clusters (transport, energy or environment) and the establishment of a common military headquarters.”

Financial system: backs the creation of a European rating agency and the separation of lending and investment in banks.

Energy: endorses reducing the share of nuclear power in electricity generation from 75 to 50% in favor of renewable energy sources.

Taxation: supports the merger of income tax and the General Social Contribution (CSG), the creation of an additional 45% for additional income of 150,000 euros, capping tax loopholes at a maximum of €10,000 per year, and questioning the relief solidarity tax on wealth (ISF, Impôt de Solidarité sur la Fortune) measure that should bring €29 billion in additional revenue.

Education: supports the recruitment of 60,000 new teachers, the creation of a study allowance and means-tested training, setting up a mutually beneficial contract that would allow a generation of experienced employees and craftsmen to be the guardians and teachers of younger newly-hired employees, thereby creating a total of 150,000 subsidized jobs.

Aid to SME’s, with the creation of a public bank investment-oriented SME’s and reducing the corporate tax rate to 30% for medium corporations and 15% for small.

Recruitment of 5,000 judges, police officers and gendarmes.

Construction of 500,000 homes per year, including 150,000 social, funded by a doubling of the ceiling of the A passbook, the State making available its local government land within five years.

Restoration of retirement at age 60 for those who have contributed more than 41 years.

Hollande supported same-sex marriage and adoption for LGBT couples, and has plans to pursue the issue in early 2013.

The provision of development funds for deprived suburbs.

Return to a deficit of 0% of GDP in 2017.

This is “moderate”? Sounds pretty “sane” to moi.

Appropriately, Hollande’s jubilant left-wing supporters took their joyous celebrations to la Place de la Bastille where the Socialist President Elect spoke:

“I don’t know if you can hear me but I have heard you. I have heard your will for change. I have heard your strength, your hope and I want to express to you all of my gratitude. Thank you, thank you, thank you people of France, gathered here, to have allowed me to be your president of the republic.”

“I am the president of the youth of France! I am the president of all the collective pride of France! I am the president of Justice in France!

“Carry this message far! Remember for the rest of your life this great gathering at the Bastille because it must give a taste to other peoples, to the whole of Europe, of the change that is coming. In all the capitals, beyond government leaders and state leaders, there are people who, thanks to us, are hoping, are looking to us and want to put an end to austerity.”

Liberté, égalité, fraternité!
 

Helen Keller was a militant anti-capitalist radical, lifelong socialist

from Richard Metzger at DangerousMinds:

“The few own the many because they possess the means of livelihood of all ... The country is governed for the richest, for the corporations, the bankers, the land speculators, and for the exploiters of labor. The majority of mankind are working people. So long as their fair demands - the ownership and control of their livelihoods - are set at naught, we can have neither men’s rights nor women’s rights. The majority of mankind is ground down by industrial oppression in order that the small remnant may live in ease.” — Helen Keller, 1911

This will piss off the Teabaggers: There is a terrific, short essay on Helen Keller’s political activism over at Dorian Cope’s always essential On This Deity blog. It’s a “must read” and focuses on the parts of her life story that they don’t teach us about when we learn about Helen Keller in school…

But what the endless accolades and history books almost always fail to mention is that Helen Keller was a militant radical activist. Her views mirrored the likes of the era’s most notorious dissidents – Emma Goldman and Eugene Debs – who were respectively deported and imprisoned for ten years. “I don’t give a damn about semi-radicals,” she infamously proclaimed; indeed, she leaned so far to the left that the FBI kept a file on her for un-American activities. She was a co-founder of the American Civil Liberties Union; a lifelong socialist who campaigned for Eugene Debs’ presidential candidacy; a member of the revolutionary Industrial Workers of the World; a suffragist and crusader for birth control; an anti-fascist (the Nazis publicly burned her books); and a pacifist, who condemned America’s imperialistic motives in both world wars. Having benefited from a privileged background, Helen recognised the social injustices facing those denied the same opportunities – and blamed industrialism and capitalism not only as the root of poverty but also disability-inducing disease. Her anti-capitalist and pro-worker stance was such that at the 1919 Hollywood premiere of a silent film about her own life, she refused to cross an Actors Equity Union picket line and joined the striking workers on their march.

In her lifetime, Helen Keller was one of the most recognisable women in the world, and those who flocked to bask in the radiance of her fame were positively scandalised by her beliefs. After publicly supporting the National Association for the Advancement of Colored People, admiring the Russian Revolution, and fearlessly lambasting the powerful John D Rockefeller for his role in the Ludlow Mine Massacre (“Mr Rockefeller is a monster of capitalism”), Helen’s radicalism became a source of extreme embarrassment to those who required her to be true to The Myth in order that they might gain:

“So long as I confine my activities to social service and the blind, they compliment me extravagantly, calling me ‘archpriestess of the sightless’, ‘wonder woman’, and ‘a modern miracle,’” Helen bemoaned. “But when it comes to a discussion of poverty, and I maintain that it is the result of wrong economics – that the industrial system under which we live is at the root of much of the physical deafness and blindness in the world – that is a different matter!”

Read the entire essay at On This Deity and WATCH THIS AMAZING FOOTAGE:

Why Socialism? This Guy Einstein is an Idiot (a rebuttal)

This man Einstein is an idiot. He obviously hasn’t heard Rush Limbaugh and other “Ditto Heads” on the radio explain the dangers of socialism.

The thought of people working to benefit all of society is a sick joke. People should work to benefit only themselves, that is what Jesus would have wanted.

Einstein has some strange idea that “the individual is able to think, feel, strive, and work by himself; but he depends so much upon society—in his physical, intellectual, and emotional existence—that it is impossible to think of him, or to understand him, outside the framework of society.”

The idea that we all depend on each other and that individuals grow and prosper in a compassionate and humane society is totally stupid. We all know that socialism is bad because the rich cannot get fabulously wealthy at the expense of the rest of society.

If the rich can’t get super richer then who is going to buy all of those yachts and mansions?

A society where all prosper is not what America is all about. Leave that to Europe and the rest of the world. America needs to support their super rich by showing we care about their interests above our own. That is what it means to be free.

Einstein is one of those educated idiots Rush has warned us about. Let’s not fall for his brand of economics.

I am really glad I live in a country where nearly all of the wealth has been transferred to the banks and the already super rich. That is what freedom is all about. This guy Einstein doesn’t understand the real world.

Hell, this guy Einstein probably thinks things are relative and that God’s word isn’t absolute. Next he’ll be saying that we should all be Buddhists or something.

This tongue in cheek rebuttal of Einstein’s famous essay “Why Socialism?” was written by Grant Lawrence and originally appeared on OpEd News in 2009

Thanks to Richard Metzger from DangerousMinds

More May Day Related Observation

ALBERT EINSTEIN: WHY SOCIALISM?

Happy May Day, comrades!

Albert Einstein’s famous essay on socialism was originally published in the first issue of Monthly Review in May 1949.

Is it advisable for one who is not an expert on economic and social issues to express views on the subject of socialism? I believe for a number of reasons that it is.

Let us first consider the question from the point of view of scientific knowledge. It might appear that there are no essential methodological differences between astronomy and economics: scientists in both fields attempt to discover laws of general acceptability for a circumscribed group of phenomena in order to make the interconnection of these phenomena as clearly understandable as possible. But in reality such methodological differences do exist. The discovery of general laws in the field of economics is made difficult by the circumstance that observed economic phenomena are often affected by many factors which are very hard to evaluate separately. In addition, the experience which has accumulated since the beginning of the so-called civilized period of human history has—as is well known—been largely influenced and limited by causes which are by no means exclusively economic in nature. For example, most of the major states of history owed their existence to conquest. The conquering peoples established themselves, legally and economically, as the privileged class of the conquered country. They seized for themselves a monopoly of the land ownership and appointed a priesthood from among their own ranks. The priests, in control of education, made the class division of society into a permanent institution and created a system of values by which the people were thenceforth, to a large extent unconsciously, guided in their social behavior.

But historic tradition is, so to speak, of yesterday; nowhere have we really overcome what Thorstein Veblen called “the predatory phase” of human development. The observable economic facts belong to that phase and even such laws as we can derive from them are not applicable to other phases. Since the real purpose of socialism is precisely to overcome and advance beyond the predatory phase of human development, economic science in its present state can throw little light on the socialist society of the future.

Second, socialism is directed towards a social-ethical end. Science, however, cannot create ends and, even less, instill them in human beings; science, at most, can supply the means by which to attain certain ends. But the ends themselves are conceived by personalities with lofty ethical ideals and—if these ends are not stillborn, but vital and vigorous—are adopted and carried forward by those many human beings who, half unconsciously, determine the slow evolution of society.

For these reasons, we should be on our guard not to overestimate science and scientific methods when it is a question of human problems; and we should not assume that experts are the only ones who have a right to express themselves on questions affecting the organization of society.

Innumerable voices have been asserting for some time now that human society is passing through a crisis, that its stability has been gravely shattered. It is characteristic of such a situation that individuals feel indifferent or even hostile toward the group, small or large, to which they belong. In order to illustrate my meaning, let me record here a personal experience. I recently discussed with an intelligent and well-disposed man the threat of another war, which in my opinion would seriously endanger the existence of mankind, and I remarked that only a supra-national organization would offer protection from that danger. Thereupon my visitor, very calmly and coolly, said to me: “Why are you so deeply opposed to the disappearance of the human race?”

I am sure that as little as a century ago no one would have so lightly made a statement of this kind. It is the statement of a man who has striven in vain to attain an equilibrium within himself and has more or less lost hope of succeeding. It is the expression of a painful solitude and isolation from which so many people are suffering in these days. What is the cause? Is there a way out?

It is easy to raise such questions, but difficult to answer them with any degree of assurance. I must try, however, as best I can, although I am very conscious of the fact that our feelings and strivings are often contradictory and obscure and that they cannot be expressed in easy and simple formulas.

Man is, at one and the same time, a solitary being and a social being. As a solitary being, he attempts to protect his own existence and that of those who are closest to him, to satisfy his personal desires, and to develop his innate abilities. As a social being, he seeks to gain the recognition and affection of his fellow human beings, to share in their pleasures, to comfort them in their sorrows, and to improve their conditions of life. Only the existence of these varied, frequently conflicting, strivings accounts for the special character of a man, and their specific combination determines the extent to which an individual can achieve an inner equilibrium and can contribute to the well-being of society. It is quite possible that the relative strength of these two drives is, in the main, fixed by inheritance. But the personality that finally emerges is largely formed by the environment in which a man happens to find himself during his development, by the structure of the society in which he grows up, by the tradition of that society, and by its appraisal of particular types of behavior. The abstract concept “society” means to the individual human being the sum total of his direct and indirect relations to his contemporaries and to all the people of earlier generations. The individual is able to think, feel, strive, and work by himself; but he depends so much upon society—in his physical, intellectual, and emotional existence—that it is impossible to think of him, or to understand him, outside the framework of society. It is “society” which provides man with food, clothing, a home, the tools of work, language, the forms of thought, and most of the content of thought; his life is made possible through the labor and the accomplishments of the many millions past and present who are all hidden behind the small word “society.”

It is evident, therefore, that the dependence of the individual upon society is a fact of nature which cannot be abolished—just as in the case of ants and bees. However, while the whole life process of ants and bees is fixed down to the smallest detail by rigid, hereditary instincts, the social pattern and interrelationships of human beings are very variable and susceptible to change. Memory, the capacity to make new combinations, the gift of oral communication have made possible developments among human being which are not dictated by biological necessities. Such developments manifest themselves in traditions, institutions, and organizations; in literature; in scientific and engineering accomplishments; in works of art. This explains how it happens that, in a certain sense, man can influence his life through his own conduct, and that in this process conscious thinking and wanting can play a part.

Man acquires at birth, through heredity, a biological constitution which we must consider fixed and unalterable, including the natural urges which are characteristic of the human species. In addition, during his lifetime, he acquires a cultural constitution which he adopts from society through communication and through many other types of influences. It is this cultural constitution which, with the passage of time, is subject to change and which determines to a very large extent the relationship between the individual and society. Modern anthropology has taught us, through comparative investigation of so-called primitive cultures, that the social behavior of human beings may differ greatly, depending upon prevailing cultural patterns and the types of organization which predominate in society. It is on this that those who are striving to improve the lot of man may ground their hopes: human beings are not condemned, because of their biological constitution, to annihilate each other or to be at the mercy of a cruel, self-inflicted fate.

If we ask ourselves how the structure of society and the cultural attitude of man should be changed in order to make human life as satisfying as possible, we should constantly be conscious of the fact that there are certain conditions which we are unable to modify. As mentioned before, the biological nature of man is, for all practical purposes, not subject to change. Furthermore, technological and demographic developments of the last few centuries have created conditions which are here to stay. In relatively densely settled populations with the goods which are indispensable to their continued existence, an extreme division of labor and a highly-centralized productive apparatus are absolutely necessary. The time—which, looking back, seems so idyllic—is gone forever when individuals or relatively small groups could be completely self-sufficient. It is only a slight exaggeration to say that mankind constitutes even now a planetary community of production and consumption.

I have now reached the point where I may indicate briefly what to me constitutes the essence of the crisis of our time. It concerns the relationship of the individual to society. The individual has become more conscious than ever of his dependence upon society. But he does not experience this dependence as a positive asset, as an organic tie, as a protective force, but rather as a threat to his natural rights, or even to his economic existence. Moreover, his position in society is such that the egotistical drives of his make-up are constantly being accentuated, while his social drives, which are by nature weaker, progressively deteriorate. All human beings, whatever their position in society, are suffering from this process of deterioration. Unknowingly prisoners of their own egotism, they feel insecure, lonely, and deprived of the naive, simple, and unsophisticated enjoyment of life. Man can find meaning in life, short and perilous as it is, only through devoting himself to society.

The economic anarchy of capitalist society as it exists today is, in my opinion, the real source of the evil. We see before us a huge community of producers the members of which are unceasingly striving to deprive each other of the fruits of their collective labor—not by force, but on the whole in faithful compliance with legally established rules. In this respect, it is important to realize that the means of production—that is to say, the entire productive capacity that is needed for producing consumer goods as well as additional capital goods—may legally be, and for the most part are, the private property of individuals.

For the sake of simplicity, in the discussion that follows I shall call “workers” all those who do not share in the ownership of the means of production—although this does not quite correspond to the customary use of the term. The owner of the means of production is in a position to purchase the labor power of the worker. By using the means of production, the worker produces new goods which become the property of the capitalist. The essential point about this process is the relation between what the worker produces and what he is paid, both measured in terms of real value. Insofar as the labor contract is “free,” what the worker receives is determined not by the real value of the goods he produces, but by his minimum needs and by the capitalists’ requirements for labor power in relation to the number of workers competing for jobs. It is important to understand that even in theory the payment of the worker is not determined by the value of his product.

Production is carried on for profit, not for use. There is no provision that all those able and willing to work will always be in a position to find employment; an “army of unemployed” almost always exists. The worker is constantly in fear of losing his job.

Private capital tends to become concentrated in few hands, partly because of competition among the capitalists, and partly because technological development and the increasing division of labor encourage the formation of larger units of production at the expense of smaller ones. The result of these developments is an oligarchy of private capital the enormous power of which cannot be effectively checked even by a democratically organized political society. This is true since the members of legislative bodies are selected by political parties, largely financed or otherwise influenced by private capitalists who, for all practical purposes, separate the electorate from the legislature. The consequence is that the representatives of the people do not in fact sufficiently protect the interests of the underprivileged sections of the population. Moreover, under existing conditions, private capitalists inevitably control, directly or indirectly, the main sources of information (press, radio, education). It is thus extremely difficult, and indeed in most cases quite impossible, for the individual citizen to come to objective conclusions and to make intelligent use of his political rights.

The situation prevailing in an economy based on the private ownership of capital is thus characterized by two main principles: first, means of production (capital) are privately owned and the owners dispose of them as they see fit; second, the labor contract is free. Of course, there is no such thing as a pure capitalist society in this sense. In particular, it should be noted that the workers, through long and bitter political struggles, have succeeded in securing a somewhat improved form of the “free labor contract” for certain categories of workers. But taken as a whole, the present day economy does not differ much from “pure” capitalism.

Production is carried on for profit, not for use. There is no provision that all those able and willing to work will always be in a position to find employment; an “army of unemployed” almost always exists. The worker is constantly in fear of losing his job. Since unemployed and poorly paid workers do not provide a profitable market, the production of consumers’ goods is restricted, and great hardship is the consequence. Technological progress frequently results in more unemployment rather than in an easing of the burden of work for all. The profit motive, in conjunction with competition among capitalists, is responsible for an instability in the accumulation and utilization of capital which leads to increasingly severe depressions. Unlimited competition leads to a huge waste of labor, and to that crippling of the social consciousness of individuals which I mentioned before.

This crippling of individuals I consider the worst evil of capitalism. Our whole educational system suffers from this evil. An exaggerated competitive attitude is inculcated into the student, who is trained to worship acquisitive success as a preparation for his future career.

I am convinced there is only one way to eliminate these grave evils, namely through the establishment of a socialist economy, accompanied by an educational system which would be oriented toward social goals. In such an economy, the means of production are owned by society itself and are utilized in a planned fashion. A planned economy, which adjusts production to the needs of the community, would distribute the work to be done among all those able to work and would guarantee a livelihood to every man, woman, and child. The education of the individual, in addition to promoting his own innate abilities, would attempt to develop in him a sense of responsibility for his fellow men in place of the glorification of power and success in our present society.

Nevertheless, it is necessary to remember that a planned economy is not yet socialism. A planned economy as such may be accompanied by the complete enslavement of the individual. The achievement of socialism requires the solution of some extremely difficult socio-political problems: how is it possible, in view of the far-reaching centralization of political and economic power, to prevent bureaucracy from becoming all-powerful and overweening? How can the rights of the individual be protected and therewith a democratic counterweight to the power of bureaucracy be assured?

Clarity about the aims and problems of socialism is of greatest significance in our age of transition. Since, under present circumstances, free and unhindered discussion of these problems has come under a powerful taboo, I consider the foundation of this magazine to be an important public service.

The spectre of Marx haunts the American landscape.
Image by Savanna Snow

from Richard Metzger over at Dangerous Minds