"In a time of universal deceit telling the truth is a revolutionary act." -George Orwell

Posts Tagged ‘Structural Adjustment’

“The State Knows The Tinder Is There”: The Sparks Of Revolution

In Uncategorized on October 3, 2013 at 5:40 pm

http://www.truth-out.org/images/images_2013_09/2013.9.30.Hedges.Main.jpgOldspeak: “The most important dilemma facing us is not ideological. It is logistical. The security and surveillance state has made its highest priority the breaking of any infrastructure that might spark widespread revolt. The state knows the tinder is there. It knows that the continued unraveling of the economy and the effects of climate change make popular unrest inevitable. It knows that as underemployment and unemployment doom at least a quarter of the U.S. population, perhaps more, to perpetual poverty, and as unemployment benefits are scaled back, as schools close, as the middle class withers away, as pension funds are looted by hedge fund thieves, and as the government continues to let the fossil fuel industry ravage the planet, the future will increasingly be one of open conflict. This battle against the corporate state, right now, is primarily about infrastructure. We need an infrastructure to build revolt. The corporate state is determined to deny us one…

The state has, at the same time, heavily infiltrated movements in order to discredit, isolate and push out their most competent leaders. It has used its vast surveillance capacities to monitor all forms of electronic communications, as well as personal relationships between activists, giving the state the ability to paralyze planned actions before they can begin. It has mounted a public relations campaign to demonize anyone who resists, branding environmental activists as “ecoterrorists,” charging activists under draconian terrorism laws, hunting down whistle-blowers such as Chelsea Manning, Julian Assange and Edward Snowden who shine a light on the inner secrets of power and condemning them as traitors and threats to national security…

Occupy articulated the concerns of the majority of citizens. Most of the citizenry detests Wall Street and big banks. It does not want more wars. It needs jobs. It is disgusted with the subservience of elected officials to corporate power. It wants universal health care. It worries that if the fossil fuel industry is not stopped, there will be no future for our children. And the state is using all its power to stymie any movement that expresses these concerns. Documents released under the Freedom of Information Act show Homeland Security, the FBI, the Federal Protective Service, the Park Service and most likely the NSA and the CIA (the latter two have refused to respond to FOIA requests) worked with police across the country to infiltrate and destroy the encampments. There were 7,765 arrests of people in the movement. Occupy, at its peak, had about 350,000 people—or about 0.1 percent of the U.S. population.”  -Chris Hedges

History teaches that we have the power to transform the nation, We put forward a strategic framework that would allow people to work together in a common direction to end the rule of money. We need to be a nationally networked movement of many local, regional and issue-focused groups so we can unite into one mass movement. Research shows that nonviolent mass movements win. Fringe movements fail. By ‘mass’ we mean with an objective that is supported by a large majority and 1 percent to 5 percent of the population actively working for transformation. Look how afraid the power structure was of a mere 1/10th of 1 percent of the population…. What happens when the movement grows to 1 percent—not a far reach—or the 5 percent that some research shows is the tipping point where no government, dictatorship or democracy can withstand the pressure from below?” -Kevin Zeese

“While the distractions abound and conditions worsen, the people’s discontent grows… Wal-Mart workers protest. Fast food workers protest. College students protest. Academics protest. Federal workers protest. Parents protestVeterans protest. Prisoners protest. Youth Protest. undocumented protest. Teachers protest. What happens indeed when these movements coalesce and reach the tipping point where the disenfranchised, struggling, downtrodden & fleeced masses can stand no more? Like Mario Savio said: “There’s a time when the operation of the machine becomes so odious—makes you so sick at heart—that you can’t take part. You can’t even passively take part. And you’ve got to put your bodies upon the gears and upon the wheels, upon the levers, upon all the apparatus, and you’ve got to make it stop. And you’ve got to indicate to the people who run it, to the people who own it that unless you’re free, the machine will be prevented from working at all.” A reckoning is fast approaching when we’ll have to face some unpleasant truths. Will be a sight to see… -OSJ

By Chris Hedges @ Truthout:

I am reading and rereading the debates among some of the great radical thinkers of the 19th and 20th centuries about the mechanisms of social change. These debates were not academic. They were frantic searches for the triggers of revolt.

Vladimir Lenin placed his faith in a violent uprising, a professional, disciplined revolutionary vanguard freed from moral constraints and, like Karl Marx, in the inevitable emergence of the worker’s state. Pierre-Joseph Proudhon insisted that gradual change would be accomplished as enlightened workers took over production and educated and converted the rest of the proletariat. Mikhail Bakunin predicted the catastrophic breakdown of the capitalist order, something we are likely to witness in our lifetimes, and new autonomous worker federations rising up out of the chaos. Pyotr Kropotkin, like Proudhon, believed in an evolutionary process that would hammer out the new society. Emma Goldman, along with Kropotkin, came to be very wary of both the efficacy of violence and the revolutionary potential of the masses. “The mass,” Goldman wrote bitterly toward the end of her life in echoing Marx, “clings to its masters, loves the whip, and is the first to cry Crucify!”

The revolutionists of history counted on a mobilized base of enlightened industrial workers. The building blocks of revolt, they believed, relied on the tool of the general strike, the ability of workers to cripple the mechanisms of production. Strikes could be sustained with the support of political parties, strike funds and union halls. Workers without these support mechanisms had to replicate the infrastructure of parties and unions if they wanted to put prolonged pressure on the bosses and the state. But now, with the decimation of the U.S. manufacturing base, along with the dismantling of our unions and opposition parties, we will have to search for different instruments of rebellion.

We must develop a revolutionary theory that is not reliant on the industrial or agrarian muscle of workers. Most manufacturing jobs have disappeared, and, of those that remain, few are unionized. Our family farms have been destroyed by agro-businesses. Monsanto and its Faustian counterparts on Wall Street rule. They are steadily poisoning our lives and rendering us powerless. The corporate leviathan, which is global, is freed from the constraints of a single nation-state or government. Corporations are beyond regulation or control. Politicians are too anemic, or more often too corrupt, to stand in the way of the accelerating corporate destruction. This makes our struggle different from revolutionary struggles in industrial societies in the past. Our revolt will look more like what erupted in the less industrialized Slavic republics, Russia, Spain and China and uprisings led by a disenfranchised rural and urban working class and peasantry in the liberation movements that swept through Africa and Latin America. The dispossessed working poor, along with unemployed college graduates and students, unemployed journalists, artists, lawyers and teachers, will form our movement. This is why the fight for a higher minimum wage is crucial to uniting service workers with the alienated college-educated sons and daughters of the old middle class. Bakunin, unlike Marx, considered déclassé intellectuals essential for successful revolt.

It is not the poor who make revolutions. It is those who conclude that they will not be able, as they once expected, to rise economically and socially. This consciousness is part of the self-knowledge of service workers and fast food workers. It is grasped by the swelling population of college graduates caught in a vise of low-paying jobs and obscene amounts of debt. These two groups, once united, will be our primary engines of revolt. Much of the urban poor has been crippled and in many cases broken by a rewriting of laws, especially drug laws, that has permitted courts, probation officers, parole boards and police to randomly seize poor people of color, especially African-American men, without just cause and lock them in cages for years. In many of our most impoverished urban centers—our internal colonies, as Malcolm X called them—mobilization, at least at first, will be difficult. The urban poor are already in chains. These chains are being readied for the rest of us. “The law, in its majestic equality, forbids rich and poor alike to sleep under bridges, beg in the streets or steal bread,” W.E.B. Du Bois commented acidly.

Erica Chenoweth and Maria J. Stephan examined 100 years of violent and nonviolent resistance movements in their book “Why Civil Resistance Works.” They concluded that nonviolent movements succeed twice as often as violent uprisings. Violent movements work primarily in civil wars or in ending foreign occupations, they found. Nonviolent movements that succeed appeal to those within the power structure, especially the police and civil servants, who are cognizant of the corruption and decadence of the power elite and are willing to abandon them.

“History teaches that we have the power to transform the nation,” Kevin Zeese said when I interviewed him. Zeese, who with Dr. Margaret Flowers founded PopularResistance.org and helped plan the occupation of Freedom Plaza in Washington, D.C., continued: “We put forward a strategic framework that would allow people to work together in a common direction to end the rule of money. We need to be a nationally networked movement of many local, regional and issue-focused groups so we can unite into one mass movement. Research shows that nonviolent mass movements win. Fringe movements fail. By ‘mass’ we mean with an objective that is supported by a large majority and 1 percent to 5 percent of the population actively working for transformation.”

Zeese said this mass resistance must work on two tracks. It must attempt to stop the machine while at the same time building alternative structures of economic democracy and participatory democratic institutions. It is vital, he said, to sever ourselves from the corporate economy. Money, he said, has to be raised for grass-roots movements since most foundations that give grants are linked to the Democratic Party. Radical student and environmental groups especially need funds to build national networks, as does the public banking initiative. This initiative is essential to the movement. It will never find support among legislative bodies, for public banks would free people from the tyranny of commercial banks and Wall Street.

The most important dilemma facing us is not ideological. It is logistical. The security and surveillance state has made its highest priority the breaking of any infrastructure that might spark widespread revolt. The state knows the tinder is there. It knows that the continued unraveling of the economy and the effects of climate change make popular unrest inevitable. It knows that as underemployment and unemployment doom at least a quarter of the U.S. population, perhaps more, to perpetual poverty, and as unemployment benefits are scaled back, as schools close, as the middle class withers away, as pension funds are looted by hedge fund thieves, and as the government continues to let the fossil fuel industry ravage the planet, the future will increasingly be one of open conflict. This battle against the corporate state, right now, is primarily about infrastructure. We need an infrastructure to build revolt. The corporate state is determined to deny us one.

The corporate state, unnerved by the Occupy movement, has moved to close any public space to movements that might reignite encampments. For example, New York City police arrested members of Veterans for Peace on Oct. 7, 2012, when they stayed beyond the 10 p.m. official closing time at the Vietnam Veterans Memorial. The police, who in some cases apologized to the veterans as they handcuffed them, were open about the motive of authorities: Officers told those being taken to jail they should blame the Occupy movement for the arrests.

The state has, at the same time, heavily infiltrated movements in order to discredit, isolate and push out their most competent leaders. It has used its vast surveillance capacities to monitor all forms of electronic communications, as well as personal relationships between activists, giving the state the ability to paralyze planned actions before they can begin. It has mounted a public relations campaign to demonize anyone who resists, branding environmental activists as “ecoterrorists,” charging activists under draconian terrorism laws, hunting down whistle-blowers such as Chelsea Manning, Julian Assange and Edward Snowden who shine a light on the inner secrets of power and condemning them as traitors and threats to national security. The state has attempted—and in this effort some in the Black Bloc proved unwittingly useful—to paint the movement as violent and directionless.

Occupy articulated the concerns of the majority of citizens. Most of the citizenry detests Wall Street and big banks. It does not want more wars. It needs jobs. It is disgusted with the subservience of elected officials to corporate power. It wants universal health care. It worries that if the fossil fuel industry is not stopped, there will be no future for our children. And the state is using all its power to stymie any movement that expresses these concerns. Documents released under the Freedom of Information Act show Homeland Security, the FBI, the Federal Protective Service, the Park Service and most likely the NSA and the CIA (the latter two have refused to respond to FOIA requests) worked with police across the country to infiltrate and destroy the encampments. There were 7,765 arrests of people in the movement. Occupy, at its peak, had about 350,000 people—or about 0.1 percent of the U.S. population.

“Look how afraid the power structure was of a mere 1/10th of 1 percent of the population,” Zeese said. “What happens when the movement grows to 1 percent—not a far reach—or the 5 percent that some research shows is the tipping point where no government, dictatorship or democracy can withstand the pressure from below?”

The state cannot allow workers at Wal-Mart, or any other nonunionized service center, to have access to an infrastructure or resources that might permit prolonged strikes and boycotts. And the movement now is about nuts and bolts. It is about food trucks, medical tents, communications vans and musicians and artists willing to articulate and sustain the struggle. We will have to build what unions and radical parties supplied in the past.

The state, in its internal projections, has a vision of the future that is as dystopian as mine. But the state, to protect itself, lies. Politicians, corporations, the public relations industry, the entertainment industry and our ridiculous television pundits speak as if we can continue to build a society based on limitless growth, profligate consumption and fossil fuel. They feed the collective mania for hope at the expense of truth. Their public vision is self-delusional, a form of collective psychosis. The corporate state, meanwhile, is preparing privately for the world it knows is actually coming. It is cementing into place a police state, one that includes the complete evisceration of our most basic civil liberties and the militarization of the internal security apparatus, as well as wholesale surveillance of the citizenry.

The most pressing issue facing us right now is the most prosaic. Protesters attempting to block the Keystone XL pipeline can endure only for so long if they have nothing to eat but stale bagels. They need adequate food. They need a system of communication to get their message out to alternative media that will amplify it. They need rudimentary medical care. All of these elements were vital to the Occupy movement. And these elements, when they came together, allowed the building of a movement that threatened the elite. The encampments also carried within them internal sources of disintegration. Many did not adequately control some groups. Many were hijacked or burdened by those who drained the political work of the movement. Many found that consensus, which worked well in small groups, created paralysis in groups of several hundred or a few thousand. And many failed to anticipate the numbing exhaustion that crushed activists. But these encampments did provide what was most crucial to the movement, something unions or the old Communist Party once provided to militants in the past. They provided the logistics to sustain resistance. And the destruction of the encampments, more than anything else, was a move by the state to deny to us the infrastructure needed to resist.

Infrastructure alone, however, will not be enough.  The resistance needs a vibrant cultural component. It was the spirituals that nourished the souls of African-Americans during the nightmare of slavery. It was the blues that spoke to the reality of black people during the era of Jim Crow. It was the poems of Federico Garcia Lorca that sustained the republicans fighting the fascists in Spain. Music, dance, drama, art, song, painting were the fire and drive of resistance movements. The rebel units in El Salvador when I covered the war there always traveled with musicians and theater troupes. Art, as Emma Goldman pointed out, has the power to make ideas felt. Goldman noted that when Andrew Undershaft, a character in George Bernard Shaw’s play “Major Barbara,” said poverty is “[t]he worst of crimes” and “All the other crimes are virtues beside it,” his impassioned declaration elucidated the cruelty of class warfare more effectively than Shaw’s socialist tracts. The degradation of education into vocational training for the corporate state, the ending of state subsidies for the arts and journalism, the hijacking of these disciplines by corporate sponsors, severs the population from understanding, self-actualization and transcendence. In aesthetic terms the corporate state seeks to crush beauty, truth and imagination. This is a war waged by all totalitarian systems.

Culture, real culture, is radical and transformative. It is capable of expressing what lies deep within us. It gives words to our reality. It makes us feel as well as see. It allows us to empathize with those who are different or oppressed. It reveals what is happening around us. It honors mystery. “The role of the artist, then, precisely, is to illuminate that darkness, blaze roads through the vast forest,” James Baldwin wrote, “so that we will not, in all our doing, lose sight of its purpose, which is, after all, to make the world a more human dwelling place.”

Artists, like rebels, are dangerous. They speak a truth that totalitarian systems do not want spoken. “Red Rosa now has vanished too. …” Bertolt Brecht wrote after Luxemburg was murdered. “She told the poor what life is about, And so the rich have rubbed her out.” Without artists such as musician Ry Cooder and playwrights Howard Brenton and Tarell Alvin McCraney we will not succeed. If we are to face what lies ahead, we will not only have to organize and feed ourselves, we will have to begin to feel deeply, to face unpleasant truths, to recover empathy and to live passionately. Then we can fight.

Chris Hedges
Chris Hedges spent nearly two decades as a foreign correspondent in Central America, the Middle East, Africa and the Balkans. He has reported from more than 50 countries and has worked for The Christian Science Monitor, National Public Radio, The Dallas Morning News and The New York Times, for which he was a foreign correspondent for 15 years. 
 

 

In A System Of Coercion & Predetermined Choices, “Freedom” Is Just A Word

In Uncategorized on September 24, 2013 at 8:27 pm

Oldspeak: “For the overwhelming majority of us, our whole lives revolve around meeting our basic needs and keeping our families from starvation and homelessness. Most individuals are at the mercy of the economic system and have little time for anything else – survival is their main concern. What kind of a life is that? Is this a life lived in absence of necessity, coercion, or constraint in choice or action? People spend most of their lives working for a ruthless system and benefit very little from the incredible work and labor they put into it. And despite their best efforts, they are barely making it.

But being a human is about more than just earning a living, working 40 plus hours a week for someone else’s benefit, and wasting countless more hours commuting to and from work. We get a few hours to ourselves for lunch or at home after work, and (if we are lucky) two weeks of vacation per year. This is not freedom – it’s more like temporary release. Living means more than merely existing; living is about experiencing life by expressing one’s passions, connecting with one another, and contributing creatively to our communities. For the most part of our existence, our bodies and our time belong to our employers, the “owners.” The only reason the current system “works” is because it threatens us with starvation and homelessness – this is coercion. It is not freedom by any definition.” -Kali Ma

“You are not your job, you’re not how much money you have in the bank. You are not the car you drive. You’re not the contents of your wallet. You are not your fucking khakis. You are all singing, all dancing crap of the world” ― Chuck Palahniuk, Fight Club

“The real hopeless victims of mental illness are to be found among those who appear to be most normal. “Many of them are normal because they are so well-adjusted to our mode of existence, because their human voice has been silenced so early in their lives, that they do not even struggle or suffer or develop symptoms as the neurotic does.” They are normal not in what may be called the absolute sense of the word; they are normal only in relation to a profoundly abnormal society. Their perfect adjustment to that abnormal society is a measure of their mental sickness. These millions of abnormally normal people, living without fuss in a society to which, if they were fully human beings, they ought not to be adjusted.”-Aldous Huxley

“None are more hopelessly enslaved than those who falsely believe they are free” -Johann Wolfgang von Goethe

“Freedom is Slavery””Ignorance is Strength” -George Orwell

“Emancipate yourselves from mental slavery, none but ourselves can free our minds.” -Nesta Robert Marley

Don’t believe the hype. All the consumables, you’re being encouraged to spend your life force acquiring in the name of “personalization”, “independence”, “freedom”, “convenience” are being used to control and enslave you. Let go of your attachments to stuff. Don’t live your life in insatiable and relentless pursuit of “more”. Our Mother Earth cannot support us if we don’t drastically re prioritize our civilizations to value conservation over consumption. Sustainable, clean, regenerative energy development over toxic, extractive and destructive development. Creation, abundance, and balance over destruction, scarcity and imbalance. The revolution begins in you.” -OSJ

By Kali Ma @ The Hampton Institute:

Freedom is a word and idea that has become synonymous with America. President George Bush told Americans in the wake of 911 that the reason terrorists attacked the country was because “they hate our freedoms.” The national anthem proudly proclaims that America is “the land of the free.” Every July 4, Americans celebrate Independence Day and the freedoms that America represents. But what does freedom actually mean? What do politicians, those in power, and everyday individuals mean when they use freedom to describe the essence of America? In the sense that we have been conditioned to think of freedom and America as synonymous, there is actually no true meaning or definition of freedom. It is what George Orwell termed a “meaningless word” because it conveys nothing specific.[1] In reality, freedom means different things to different people: the right to free speech; the right to vote and participate in the political process; the right to privacy; the ability to accumulate great wealth and consume various products; or the right to live unmolested and to move about freely without constraints. [2] Essentially, the meaning of freedom is a personal one that has no official consensus.

According to the Merriam-Webster Dictionary, freedom means: a)the absence of necessity, coercion, or constraint in choice or action; b) liberation from slavery or restraint or from the power of another. Freedom, then, is about autonomy and independence – to be in control of oneself and to choose one’s destiny. If we apply this definition as the standard, do we truly have freedom?
“Work Until We Keel Over and Die”

The reality for most people in the world today is one in which we serve the needs of the economic system, and in turn, those at the top who benefit from the status quo. For a human being to do anything in the world, his or her most basic needs – such as food, shelter, and clothing – must first be met. Since all individuals need money to survive, the economic system within a country is one of the primary – if not the primary – determinant of an individual’s course and quality of life. Since money is directly tied to survival, it serves as a major factor that guides our decisions.

Frontline’s recently released documentary Two American Families vividly depicts the extent to which money and the economic system affect our everyday reality. The film follows the lives of two working-class families (the Neumanns and the Stanleys) over the course of twenty years as they struggle to live the “American Dream.” Their troubles begin when both Tony Neumann and Claude Stanley lose their well-paying, unionized manufacturing jobs to overseas outsourcing. What follows in the next two decades for both families is a painful struggle to keep up with their bills, feed their children, and cope with the constant stress of being unemployed, underemployed, and on the brink of poverty and homelessness. Throughout the years, the Neumanns and Stanleys work various demanding jobs (sometimes two at a time) and eventually hope to live a life of “purpose and a lot more self-respect.” The Neumann kids worry about the family’s finances and, at one point, even offer to sell their baseball cards. The Stanley boys start their own lawn care business and have no time for fun during the summer because, as the oldest son Keith says, “You have to go out there and help your mom and dad.” Only one Stanley child makes it through college while the rest are unable to attend due to medical bills that put the family $30,000 in debt. Even with all their hard work, resilience, and refusal to give up, both families express their disappointments and blame themselves for the struggles they have endured over the years.

One of the most disturbing examples of the injustice and ruthlessness of our system is the foreclosure of Terry Neumann’s home. After 24 years, Terry loses her house in 2011 because her part-time job wages are not enough to cover the mortgage. If we assume that the monthly mortgage payments stayed the same for 24 years, the Neumann family paid JP Morgan close to $236,160 for a house the bank sold for $38,000 in foreclosure and for which they demanded an additional $120,000 from Terry as a buy-out.[3] After years of barely “making it,” Terry has little faith in the future and believes that most of us will simply “work until we collapse, keel over and die.”
Poverty – As American as Apple Pie

Unfortunately, the Stanleys and the Neumanns are not unique. Their stories are typical and happen to millions of Americans every day. According to recent surveys, 76% of Americans live paycheck to paycheck and 80% of Americans struggle with unemployment and near-poverty at some point in their lives. Since the 2008 economic crash, millions of Americans have slipped into poverty, lost their homes, gone bankrupt, become unemployed, and are now working part-time jobs in an economy where not even full-time wages are enough to make a decent living. But these conditions have always been present, as evidenced by families like the Stanleys and Neumanns; it’s just that now an increasing number of Americans are living this reality that had previously gone mostly unacknowledged. Currently, there are more than47 million Americans on food stamps (most of thememployed), and almost a third of working class families earn wages below the official poverty threshold. In the more updated poverty measures, which include additional living costs such as medical expenses, almost 50% of Americans – 146. 4 million people – are considered poor or low-income.[4] On top of all this, 69% of Americans today hold some form of debt with the median household owing $70,000. Unfortunately, the odds of overcoming these dire economic circumstances are slim: theU.S. ranks consistently at the bottom when it comes toincome equality and offers much less economic mobility than other developed countries. So, who is benefitting from this system?

The top 1% richest households in America received 121% of all income gains from 2009 to 2011, and median CEO pay increased to $15.1 million last year. Today, the richest 1% of Americans take in 24% of all new income, while in 1976 they took home 9%. The 400 wealthiest individuals – the real owners of America – have more wealth than the bottom 150 million Americans. Corporations have also raked in record profits, yet somehow none of this prosperity has “trickled down” to the rest of us.
Freedom to Live, Not Merely Exist

When we look at the Stanleys, Neumanns, and millions of other families struggling to (literally) survive, one has to ask: are they free human beings? What freedoms do they enjoy? For the overwhelming majority of us, our whole lives revolve around meeting our basic needs and keeping our families from starvation and homelessness. Most individuals are at the mercy of the economic system and have little time for anything else – survival is their main concern. What kind of a life is that? Is this a life lived in absence of necessity, coercion, or constraint in choice or action? People spend most of their lives working for a ruthless system and benefit very little from the incredible work and labor they put into it. And despite their best efforts, they are barely making it.

But being a human is about more than just earning a living, working 40 plus hours a week for someone else’s benefit, and wasting countless more hours commuting to and from work. We get a few hours to ourselves for lunch or at home after work, and (if we are lucky) two weeks of vacation per year. This is not freedom – it’s more like temporary release. Living means more than merely existing; living is about experiencing life by expressing one’s passions, connecting with one another, and contributing creatively to our communities. For the most part of our existence, our bodies and our time belong to our employers, the “owners.” The only reason the current system “works” is because it threatens us with starvation and homelessness – this is coercion. It is not freedom by any definition.

According to studies, most workers today have completely checked out from their jobs and are practically sleepwalking through their workdays. This even includes high-income workers, which suggests that money has little effect on whether we actually enjoy our jobs. These statistics fly in the face of those who argue that our current system is necessary because it creates an incentive for people to be productive. Studies have repeatedly shown thatmoney is actually a bad motivator, and what people really care about is to have autonomy at their jobs and the opportunity to apply their talents and be recognized for their work. Turns out, self-expression and the ability to make one’s own decisions are more important than money. This may be surprising to many of us because we have been indoctrinated into an economic ideology that sees profit as the ultimate value without any consideration for human beings and the natural world. Today, our global economy is mostly geared toward consuming and producing products we don’t need at the expense of exploited workers and the degradation of our environment. In other words, we are lending our labor to forces of death and destruction while ignoring the consequences of our work. No wonder most people cannot relate to their jobs.

Unfortunately, many individuals cannot afford to quit their jobs even if they find their work morally repugnant because they have to worry about paying their bills and taking care of their families. Moreover, in an economy based on consumption and exploitation, there are few meaningful jobs that provide us with a deep sense of purpose and that create a positive impact on society. If they do exist, these jobs are mostly reserved for privileged individuals who get to choose between careers of profit or lives of purpose. It is these kinds of choices that working class people do not have in our system today.

No one is suggesting that people should not be “productive” or contribute to society; on the contrary, people want to have a purpose in life and we should be able to utilize our talents and passions for the benefit of society while still working in harmony with each other and the environment. A coercive economy only creates widespread discontent and fails to meet even the basic physical and psychological needs of the majority of people.

Unfortunately, there are still those who blame others for being poor, unemployed, or struggling in this economy. While those in power often blame people for their misfortunate in order to evade responsibility for creating and perpetuating a system of oppression, there are also those within the working class who echo their sentiments. Clearly these individuals have internalized the authoritarian and coercive mindset that keeps them obedient to the needs of those in power. Their anger, criticism and disgust are misplaced and should be directed at the ruling class who benefits from this system of oppression and degradation. They have sharp words of “personal responsibility” for working people, yet no calls for accountability of Wall Street criminality and general belligerence of the ruling class. The victim-blamers never stop to ask themselves why there is no space in our economy for people to express their passions and talents; or why every person must adapt to the needs of the system – isn’t the system supposed to work for us, the people? But, of course, it is much easier to blame the victims than to confront our own powerlessness.
Limited, Predetermined Choices

Our every decision depends on the system’s approval, and we forego many of our wishes, desires, hopes, and dreams because we have to labor to survive. This is simply a sophisticated and updated version of slavery that has most people serving the interests of the powerful with minimal benefits to themselves. And make no mistake about it – the ruling class – if they could get away with it – would make all of us work for free. They are certainly not above slavery, as the history of African Americans and today’s corporate exploitation of farmworkers,temp workers, prisoners, and millions of sweatshop laborers around the world clearly shows. We are only putting up with this system because we have no other choice; we are blackmailed and rendered passive because our survival depends on our servitude to the interests of a ruthless authoritarian structure. No one in their right mind would willingly choose this type of existence because it goes against every natural human instinct that pushes against oppression and yearns for self-expression and creativity.

We cannot even choose our own education because we have to look to the system to determine which majors will land us a job or make us a lot of money. Knowledge and education have been commodified, stripped of their inherent value, and turned into assembly-line products to be bought and sold on the market. We have lost the most basic and personal freedoms to determine how we wish to cultivate our lives – it is all about the system and how we can be used to serve its needs. This type of thinking is so deeply ingrained into our psyche that most people do not even realize that this is how they approach life. Living our passions and having autonomy should not be a privilege – we all deserve the opportunity to express our talents, not just the lucky (mostly privileged) few. Anything less than that is psychological and spiritual suicide.

The issue of freedom boils down to autonomy – the dignity of self-determination which recognizes that we as human beings are more than just commodities to be used and exploited for the benefit of the few; to exercise our inherent rights as living beings to make decisions about our own lives without facing catastrophic consequences from a system created by those in power who benefit from our oppression. So the next time you hear the word “freedom,” ask yourself: do I have the autonomy to direct my life as I wish, to pursue my passions, interests, and desires without facing the consequences of starvation, homelessness or alienation? Am I free to do as I wish (without harming anyone) or am I dependent and beholden to a greater force and power than myself – one that makes those fundamental decisions for me? Do I have real choices in my life or only the superficial “choice” of Pepsi or Coke, Democrat or Republican, CNN or Fox News? In other words, do our choices have substance or is it just the same shit in a different package?

Notes

[1] Because the word “freedom” conveys nothing, individuals (and governments) can conceal the true nature of their ideas and actions behind such ambiguous words, while allowing their audience to fill in the missing definition. For instance, when politicians speak of a free economy (or economic freedom), what they really mean is an economy free to exploit workers and the environment without any regulation, rules, or oversight of corporations; however, many individuals interpret economic freedom to mean the right to work, decent wages, or better opportunities to start small businesses. Clearly, there is a disconnect between the politician’s meaning of the word and its interpretation by the audience.

[2] Even the rights we think we have are vanishing before our eyes: as a result of mass surveillance, the right to privacy no longer exists; our votes have become meaningless because regardless of who we vote for, Wall Street and the military industrial complex always win; many of us cannot even walk around freely without being harassed in the age of codified racial profiling under “Stop and Frisk”; and of course the “chilling” effect on free speech resulting from unprecedented persecutions of journalists and whistleblowers by an establishment so afraid of the truth that it jails those who expose corruption and war crimes.

[3] $820 (monthly mortgage) x 12 months x 24 years = $236,160. This sum does not include fees and penalties the Neumanns paid over the years when they fell behind on their mortgage.

[4] Some critics argue that even these figures are too low because the standards for calculating the poverty line have not been updated since the 1960s. If the measures had kept pace with living standards over the years, today the poverty threshold would be $34,000 for a family of four instead of the $25,222 in the more “updated” version under the Poverty Supplemental Measure. http://www.cepr.net/index.php/blogs/cepr-blog/raising-minimum-wage-to-9-not-enough-to-ensure-that-families-with-fulltime-workers-live-above-poverty-line

Syrian “Intervention”: Making The World Safe For Banksters

In Uncategorized on September 10, 2013 at 1:20 pm

Oldspeak: “D’oh! U.S. Secretary of State John Kerry may have royally screwed the pooch on the war plan by saying”that Bashar al-Assad, the Syrian president, could avoid strikes by agreeing to give up his chemical weapons. “He could turn over every single bit of his chemical weapons to the international community in the next week — turn it over, all of it, without delay and allow the full and total accounting,” . He inadvertently gave the Syrians an out! The Russians, eager to protect one of their last remaining client states in the middle east, jumped on the opportunity to avoid regime change, by making the Syrians agree to give up their chemical weapons ASAP and the Syrians have “welcomed it”. So now the warmongers have to pump their brakes and possibly halt the escalation of their proxy war with the Russians. One has to wonder why the Nobel Peace Prize winner has been soooo hot to go to war on flimsy intelligence and amidst reports that both sides are guilty of war crimes? All for bombing, with detailed, documented, technically compliant & publicly available reports of atrocities committed by Syrian rebels, including releases of chemical weapons?! Why is bombing Syria an option after an alleged, unconfirmed and still being investigated Syrian government chemical weapons release, but not after a confirmed report of rebel chemical weapons release, known of since APRIL!? Greg Palast and Ellen Hodges Brown may have uncovered the answer:

Greg Palast posted evidence of a secret late-1990s plan devised by Wall Street and U.S. Treasury officials to open banking to the lucrative derivatives business. To pull this off required the relaxation of banking regulations not just in the US but globally. The vehicle to be used was the Financial Services Agreement of the World Trade Organization. The “end-game” would require not just coercing support among WTO members but taking down those countries refusing to join. Some key countries remained holdouts from the WTO, including Iraq, Libya, Iran and Syria. In these Islamic countries, banks are largely state-owned; and “usury” – charging rent for the “use” of money – is viewed as a sin, if not a crime. That puts them at odds with the Western model of rent extraction by private middlemen. Publicly-owned banks are also a threat to the mushrooming derivatives business, since governments with their own banks don’t need interest rate swaps, credit default swaps, or investment-grade ratings by private rating agencies in order to finance their operations….

Countries laboring under the yoke of an extractive private banking system are being forced into “structural adjustment” and austerity by their unrepayable debt. But some countries have managed to escape. In the Middle East, these are the targeted “rogue nations.” Their state-owned banks can issue the credit of the state on behalf of the state, leveraging public funds for public use without paying a massive tribute to private middlemen. Generous state funding allows them to provide generously for their people.

Like Libya and Iraq before they were embroiled in war, Syria provides free education at all levels and free medical care. It also provides subsidized housing for everyone (although some of this has been compromised by adoption of an IMF structural adjustment program in 2006 and the presence of about 2 million Iraqi and Palestinian refugees). Iran too provides nearly free higher education and primary health care.

Like Libya and Iraq before takedown, Syria and Iran have state-owned central banks that issue the national currency and are under government control. Whether these countries will succeed in maintaining their financial sovereignty in the face of enormous economic, political and military pressure remains to be seen.” -Ellen Hodges Brown

So no, this war is not about preventing the use of chemical weapons by the Syrian government. It’s about money. Specifically unregulated  and private gambling with other people’s money, then forcing them to pay when the gamble goes bad. It’s about aggressively continuing the relentless march of  Really Existing Capitalist Democracy around the world. Everything privatized. All under corprocratic control and surveillance. A globally controlled debt creation & extraction system, that no one can avoid paying tribute to; religion be damned. Oh, and securing Syria’s oil and routes for gas pipelines. -OSJ

By Ellen Hodges Brown @ Web Of Debt:

The powers of financial capitalism had another far reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole.

— Prof. Caroll Quigley, Georgetown University, Tragedy and Hope (1966)

Iraq and Libya have been taken out, and Iran has been heavily boycotted. Syria is now in the cross-hairs. Why? Here is one overlooked scenario. 

In an August 2013 article titled “Larry Summers and the Secret ‘End-game’ Memo,” Greg Palast posted evidence of a secret late-1990s plan devised by Wall Street and U.S. Treasury officials to open banking to the lucrative derivatives business. To pull this off required the relaxation of banking regulations not just in the US but globally. The vehicle to be used was the Financial Services Agreement of the World Trade Organization.

The “end-game” would require not just coercing support among WTO members but taking down those countries refusing to join. Some key countries remained holdouts from the WTO, including Iraq, Libya, Iran and Syria. In these Islamic countries, banks are largely state-owned; and “usury” – charging rent for the “use” of money – is viewed as a sin, if not a crime. That puts them at odds with the Western model of rent extraction by private middlemen. Publicly-owned banks are also a threat to the mushrooming derivatives business, since governments with their own banks don’t need interest rate swaps, credit default swaps, or investment-grade ratings by private rating agencies in order to finance their operations.

Bank deregulation proceeded according to plan, and the government-sanctioned and -nurtured derivatives business mushroomed into a $700-plus trillion pyramid scheme. Highly leveraged, completely unregulated, and dangerously unsustainable, it collapsed in 2008 when investment bank Lehman Brothers went bankrupt, taking a large segment of the global economy with it. The countries that managed to escape were those sustained by public banking models outside the international banking net.

These countries were not all Islamic. Forty percent of banks globally are publicly-owned. They are largely in the BRIC countries—Brazil, Russia, India and China—which house forty percent of the global population. They also escaped the 2008 credit crisis, but they at least made a show of conforming to Western banking rules. This was not true of the “rogue” Islamic nations, where usury was forbidden by Islamic teaching. To make the world safe for usury, these rogue states had to be silenced by other means. Having failed to succumb to economic coercion, they wound up in the crosshairs of the powerful US military.

Here is some data in support of that thesis.

The End-game Memo

In his August 22nd article, Greg Palast posted a screenshot of a 1997 memo from Timothy Geithner, then Assistant Secretary of International Affairs under Robert Rubin, to Larry Summers, then Deputy Secretary of the Treasury. Geithner referred in the memo to the “end-game of WTO financial services negotiations” and urged Summers to touch base with the CEOs of Goldman Sachs, Merrill Lynch, Bank of America, Citibank, and Chase Manhattan Bank, for whom private phone numbers were provided.

The game then in play was the deregulation of banks so that they could gamble in the lucrative new field of derivatives. To pull this off required, first, the repeal of Glass-Steagall, the 1933 Act that imposed a firewall between investment banking and depository banking in order to protect depositors’ funds from bank gambling. But the plan required more than just deregulating US banks. Banking controls had to be eliminated globally so that money would not flee to nations with safer banking laws. The “endgame” was to achieve this global deregulation through an obscure addendum to the international trade agreements policed by the World Trade Organization, called the Financial Services Agreement. Palast wrote:

Until the bankers began their play, the WTO agreements dealt simply with trade in goods–that is, my cars for your bananas.  The new rules ginned-up by Summers and the banks would force all nations to accept trade in “bads” – toxic assets like financial derivatives.

Until the bankers’ re-draft of the FSA, each nation controlled and chartered the banks within their own borders.  The new rules of the game would force every nation to open their markets to Citibank, JP Morgan and their derivatives “products.”

And all 156 nations in the WTO would have to smash down their own Glass-Steagall divisions between commercial savings banks and the investment banks that gamble with derivatives.

The job of turning the FSA into the bankers’ battering ram was given to Geithner, who was named Ambassador to the World Trade Organization.

WTO members were induced to sign the agreement by threatening their access to global markets if they refused; and they all did sign, except Brazil. Brazil was then threatened with an embargo; but its resistance paid off, since it alone among Western nations survived and thrived during the 2007-2009 crisis. As for the others:

The new FSA pulled the lid off the Pandora’s box of worldwide derivatives trade.  Among the notorious transactions legalized: Goldman Sachs (where Treasury Secretary Rubin had been Co-Chairman) worked a secret euro-derivatives swap with Greece which, ultimately, destroyed that nation.  Ecuador, its own banking sector de-regulated and demolished, exploded into riots.  Argentina had to sell off its oil companies (to the Spanish) and water systems (to Enron) while its teachers hunted for food in garbage cans.  Then, Bankers Gone Wild in the Eurozone dove head-first into derivatives pools without knowing how to swim–and the continent is now being sold off in tiny, cheap pieces to Germany.

The Holdouts

That was the fate of countries in the WTO, but Palast did not discuss those that were not in that organization at all, including Iraq, Syria, Lebanon, Libya, Somalia, Sudan, and Iran. These seven countries were named by U.S. General Wesley Clark (Ret.) in a 2007 “Democracy Now” interview as the new “rogue states” being targeted for take down after September 11, 2001. He said that about 10 days after 9-11, he was told by a general that the decision had been made to go to war with Iraq. Later, the same general said they planned to take out seven countries in five years: Iraq, Syria, Lebanon, Libya, Somalia, Sudan, and Iran.

What did these countries have in common? Besides being Islamic, they were not members either of the WTO or of the Bank for International Settlements (BIS). That left them outside the long regulatory arm of the central bankers’ central bank in Switzerland. Other countries later identified as “rogue states” that were also not members of the BIS included North Korea, Cuba, and Afghanistan.

The body regulating banks today is called the Financial Stability Board (FSB), and it is housed in the BIS in Switzerland. In 2009, the heads of the G20 nations agreed to be bound by rules imposed by the FSB, ostensibly to prevent another global banking crisis. Its regulations are not merely advisory but are binding, and they can make or break not just banks but whole nations. This was first demonstrated in 1989, when the Basel I Accord raised capital requirements a mere 2%, from 6% to 8%. The result was to force a drastic reduction in lending by major Japanese banks, which were then the world’s largest and most powerful creditors. They were undercapitalized, however, relative to other banks. The Japanese economy sank along with its banks and has yet to fully recover.

Among other game-changing regulations in play under the FSB are Basel III and the new bail-in rules. Basel III is slated to impose crippling capital requirements on public, cooperative and community banks, coercing their sale to large multinational banks.

The “bail-in” template was first tested in Cyprus and follows regulations imposed by the FSB in 2011. Too-big-to-fail banks are required to draft “living wills” setting forth how they will avoid insolvency in the absence of government bailouts. The FSB solution is to “bail in” creditors – including depositors – turning deposits into bank stock, effectively confiscating them.

The Public Bank Alternative

Countries laboring under the yoke of an extractive private banking system are being forced into “structural adjustment” and austerity by their unrepayable debt. But some countries have managed to escape. In the Middle East, these are the targeted “rogue nations.” Their state-owned banks can issue the credit of the state on behalf of the state, leveraging public funds for public use without paying a massive tribute to private middlemen. Generous state funding allows them to provide generously for their people.

Like Libya and Iraq before they were embroiled in war, Syria provides free education at all levels and free medical care. It also provides subsidized housing for everyone (although some of this has been compromised by adoption of an IMF structural adjustment program in 2006 and the presence of about 2 million Iraqi and Palestinian refugees). Iran too provides nearly free higher education and primary health care.

Like Libya and Iraq before takedown, Syria and Iran have state-owned central banks that issue the national currency and are under government control. Whether these countries will succeed in maintaining their financial sovereignty in the face of enormous economic, political and military pressure remains to be seen.

As for Larry Summers, after proceeding through the revolving door to head Citigroup, he became State Senator Barack Obama’s key campaign benefactor. He played a key role in the banking deregulation that brought on the current crisis, causing millions of US citizens to lose their jobs and their homes. Yet Summers is President Obama’s first choice to replace Ben Bernanke as Federal Reserve Chairman. Why? He has proven he can manipulate the system to make the world safe for Wall Street; and in an upside-down world in which bankers rule, that seems to be the name of the game.

Ellen Brown is an attorney in Los Angeles and the author of 11 books. In Web of Debt: The Shocking Truth about Our Money System and How We Can Break Free, she shows how a private banking cartel has usurped the power to create money from the people themselves, and how we the people can get it back. Read other articles by Ellen, or visit Ellen’s website.

 

 

 

Multinational Greed Is Threatening The Stability Of Societies Across the Planet

In Uncategorized on July 26, 2013 at 2:13 pm

Oldspeak: “Around the globe, people are getting increasingly frustrated by governments going out of their way to ensure an enabling environment for big business while making drastic cuts in public spending on social welfare. This is fuelling alienation among electorates, spurring protests. Of great concern, is that those seeking to expose the nexus between governments and big business are being subjected to various forms of persecution with state complicity….. while the power of transnational corporations has expanded exponentially, income and wealth disparities are threatening to tear societies apart. The World Economic Forum’s 2013 annual survey of global risks identifies severe income disparity as a key concern likely to manifest itself over the next decade. The International Monetary Fund’s Managing Director has admitted that the top 0.5 percent of the globe’s population holds 35 per cent of its wealth . Civil society group, Oxfam estimated that in 2012, the world’s top 100 billionaires earned enough money to end poverty four times over.  ….But despite the grave warnings from civil society, governments and financial institutions continue to spin arguments about the need to privatise services when they should be focusing on how to make the public sector fit for purpose. Shockingly, during a global economic downturn, political leaders and captains of industry have together managed to subject ordinary people to double jeopardy: having to pay taxes to the state and then having to fork out profit-adjusted higher costs for privatised health, education, public transport, telecommunications, road works, electricity, water supply and so on. These services are indeed governments’ responsibility to provide as part of the social contract between citizens and the state.” -Mandeep Tiwana

“It seems pretty obvious at this point that the people who’ve profited the most from the 2008 global economic collapse, our corporate citizens who’ve been bailed out and are constantly being supported by monthly taxpayer financed subsidies via “Quantitive Easing” policies are driving the current global economic and ecological  downturn. Depressing wages, eliminating workers, stripping worker protections, destroying food and water supplies, taking ownership of all,  replacing jobs with living wages with jobs with slave wages, asserting supra-governmental control via a number of secret laws, directives, policies, treaties and trade agreements.  Logic dictates that fewer workers with less spending power = failing economy.  Yet this logic is ignored. This is happening world wide for the most part. It’s clear that the governments worldwide are no longer representative of their people. They’re serving as facilitators and gatekeepers of a global neo-feudalist control system being emplaced. The people continue to honor the social contract between them and the state while the state has thrown it out, and entered into a new contract with the 0.5%. How else to explain half the world living in poverty, when the 100 people could end it 4 times over. How else to explain GM and Chrysler being bailed out while the city around them, Detroit, is being allowed to go bankrupt, not mentioned ONCE in Obama’s latest rhetorical master speech on the U.S. Economy, even as he crowed about saving the U.S. Auto Industry. How else to explain Citigroup’s profits increasing by 42% as it cuts its workforce and makes more than 50% of its profits outside of the U.S.? We have to have real conversations about the fatal corruption of the capitalist system by greed for money. The system is irreparably corrupted by money and amorality. What do we do when a computer’s system is corrupted? We fix it, or if it’s beyond repair, we replace it with a new system. This is what must be done with our economic system. We must replace it.” – OSJ

By Mandeep Tiwana @ Al Jazzera English:

The people are angry. In Turkey, Brazil, and most recently again, Egypt, thousands have taken to the streets to voice their anger and frustration at the lack of social and economic justice. Political and economic elites, working in tandem, have managed to neutralise the aspirations of ordinary people, in part spurring the disenfranchisement driving the protests.

Whether it is the removal of subsidies  [3]protecting the poor against inflation and price shocks in Egypt, or the enormous cost of hosting high profile sporting events  [4]in Brazil at the expense of social services, or government plans to commercialise  [5]a beloved public park in the heart of Istanbul, the headlong embrace of neoliberal economic policies by governments is likely to cause further dissatisfaction and unrest across the globe.

Neo-liberalism, using a dictionary definition, as a “modern politico-economic theory favouring free trade, privatisation, minimal government intervention, reduced public expenditure on social services etc.,” reduces the responsibility of the state while promoting privatisation to favour those with access to resources and influence. It is playing havoc with the lives and livelihoods of ordinary people.

Despite mainstream perceptions, the sad reality is that free markets don’t automatically regulate themselves nor do they naturally respect individual or community rights. In Indonesia [6], people are choking from fires set by agricultural companies to clear forests to allow mammoth palm oil plantations to flourish. In the United States [7], popular demands for effective gun control are being blocked by congressmen bankrolled by the arms industry. In Ethiopia [8], thousands have been displaced through forced villagisation programmes to make way for agricultural companies that want to make land more “productive.” In Spain  [9]and inGreece [10], public property such as hospitals and airports are being sold to private players to make the economy more “nimble.” In the UK [11], frustration is mounting about tax evasion by transnational corporations whose turnover exceeds the GDP of many countries, while the average citizen continues to dutifully pay their fair share of taxes.

Around the globe, people are getting increasingly frustrated by governments going out of their way to ensure an enabling environment for big business while making drastic cuts in public spending on social welfare. This is fuelling alienation among electorates, spurring protests. Of great concern, is that those seeking to expose the nexus between governments and big business are being subjected to various forms of persecution with state complicity.

In Cambodia [12], land rights activists opposing official plans to forcibly acquire land for big companies have been subjected to brutal attacks by security forces and lengthy prison terms. In Honduras [13], peasant farmers’ groups involved in land disputes with companies have been subjected to murderous attacks.  InIndia [14], peaceful activists ideologically opposed to the government’s economic policy have been charged under draconian laws of being members of outlawed terrorist organisations. In Canada [15], non-profit groups opposed to the conservative government’s policy of loosening environmental restrictions to enable extraction of oil and gas from ecologically sensitive zones have been subjected to surveillance and funding cuts, while being accused of being obstructive of the country’s economic development.

Widening income inequality

Worryingly, while the power of transnational corporations has expanded exponentially, income and wealth disparities are threatening to tear societies apart. The World Economic Forum’s 2013 annual survey of global risks identifies severe income disparity [16] as a key concern likely to manifest itself over the next decade. The International Monetary Fund’s Managing Director has admitted that the top 0.5 percent of the globe’s population holds 35 per cent of its wealth [17]. Civil society group, Oxfam estimated that in 2012, the world’s top 100 billionaires earned enough money to end poverty four times over [18]. CIVICUS, the global civil society alliance has argued in its annual report  [19]that the discourse on inequality is becoming commonplace with the 1 percent vs the 99 percent meme entering the mainstream.

But despite the grave warnings from civil society, governments and financial institutions continue to spin arguments about the need to privatise services when they should be focusing on how to make the public sector fit for purpose. Shockingly, during a global economic downturn, political leaders and captains of industry have together managed to subject ordinary people to double jeopardy: having to pay taxes to the state and then having to fork out profit-adjusted higher costs for privatised health, education, public transport, telecommunications, road works, electricity, water supply and so on. These services are indeed governments’ responsibility to provide as part of the social contract between citizens and the state.

In the past, the political and economic elite have erroneously sought to deride the occupy movements,indignados and anti-corruption protestors as fringe elements without clear vision or majority support. But with greater numbers of people taking to the streets to voice their dissatisfaction against corruption, environmental degradation and top down austerity policies, decision makers have a reality check staring them in the face. But will they right the ship on neo-liberal economic policies when they are privately profiting from it? Perhaps citizen action will help answer that.

See more stories tagged with:


Links:
[1] http://english.aljazeera.net/
[2] http://www.alternet.org/authors/mandeep-tiwana
[3] http://www.guardian.co.uk/commentisfree/2012/dec/21/egyptians-held-back-neoliberalism-not-religion
[4] http://www.aljazeera.com/indepth/features/2013/06/2013619134555233454.html
[5] http://www.aljazeera.com/programmes/witness/2013/07/20137112549633235.html
[6] http://www.greenpeace.org/international/en/press/releases/Palm-oil-companies-must-come-clean-on-Indonesian-fire-hotspots—Greenpeace/
[7] http://www.forbes.com/sites/frederickallen/2013/04/18/gun-control-a-congress-of-cowards/
[8] http://www.hrw.org/news/2012/01/16/ethiopia-forced-relocations-bring-hunger-hardship
[9] http://iberosphere.com/2013/06/spain-news-private-sector-moves-into-spains-public-hospitals/8701
[10] http://pathfinderbuzz.com/resilience-makes-greek-ports-attractive/
[11] http://www.guardian.co.uk/business/2012/nov/12/starbucks-tax-avoidance-controversy
[12] https://www.civicus.org/media-centre-129/61-press-releases/1030-cambodia-civicus-calls-for-unconditional-release-of-detained-activists
[13] http://www.amnesty.org/en/library/asset/AMR37/003/2013/en/4fabe3f5-648c-4192-9383-06ae42fa9922/amr370032013en.html
[14] http://www.hrw.org/news/2013/06/26/india-stop-misuse-counterterrorism-laws
[15] http://socs.civicus.org/?p=3825
[16] http://reports.weforum.org/global-risks-2013/
[17] http://www.imf.org/external/np/speeches/2013/051513.htm
[18] http://www.oxfam.org/en/pressroom/pressrelease/2013-01-19/annual-income-richest-100-people-enough-end-global-poverty-four-times
[19] http://socs.civicus.org/wp-content/uploads/2013/04/2013StateofCivilSocietyReport_full.pdf
[20] http://www.alternet.org/tags/neoliberalism
[21] http://www.alternet.org/%2Bnew_src%2B

“Human Beings Have No Right to Water” & Other Words Of Wisdom From Your Friendly Neighborhood Global Oligarch

In Uncategorized on May 12, 2013 at 7:20 pm
http://andrewgavinmarshall.files.wordpress.com/2013/04/1521546_orig.jpg?w=360&h=235

Peter Brabeck, Chairman of Nestlé

Oldspeak: “Water, is of course the most important raw material we have today in the world, it’s a question of whether we should privatize the normal water supply for the population. And there are two different opinions on the matter. The one opinion, which I think is extreme, is represented by the NGOs, who bang on about declaring water a public right. That means that as a human being you should have a right to water. That’s an extreme solution. The other view says that water is a foodstuff like any other, and like any other foodstuff it should have a market value. Personally I believe it’s better to give a foodstuff a value so that we’re all aware that it has its price, and then that one should take specific measures for the part of the population that has no access to this water, and there are many different possibilities there. The biggest social responsibility of any CEO, is to maintain and ensure the successful and profitable future of his enterprise. For only if we can ensure our continued, long term existence will we be in the position to actively participate in the solution of the problems that exist in the world. We’re in the position of being able to create jobs… If you want to create work, you have to work yourself, not as it was in the past where existing work was distributed. If you remember the main argument for the 35-hour week was that there was a certain amount of work and it would be better if we worked less and distributed the work amongst more people. That has proved quite clearly to be wrong. If you want to create more work you have to work more yourself. And with that we’ve got to create a positive image of the world for people, and I see absolutely no reason why we shouldn’t be positive about the future. We’ve never had it so good, we’ve never had so much money, we’ve never been so healthy, we’ve never lived as long as we do today. We have everything we want and we still go around as if we were in mourning for something.” -Peter Brabeck-Letmathe, CEO, Nestle

“It’s important to note that this is not simply the personal view of some random corporate executive, but rather, that it reflects an institutional reality of corporations: the primary objective of a corporation – above all else – is to maximize short-term profits for shareholders. By definition, then, workers should work more and be paid less, the environment is only a concern so much as corporations have unhindered access to control and exploit the resources of the environmentWith this institutional – and ideological – structure (which was legally constructed by the state), concern for the environment, for water, for the world and for humanity can only be promoted if it can be used to advance corporate profits, or if it can be used for public relations purposes. Ultimately, it has to be hypocritical. A corporate executive cannot take an earnest concern in promoting the general welfare of the world, the environment, or humanity, because that it not the institutional function of a corporation, and no CEO that did such would be allowed to remain as CEO. This is why it matters what Peter Brabeck thinks: he represents the type of individual – and the type of thinking – that is a product of and a requirement for running a successful multinational corporation, of the corporate culture itself.” -Andrew Gavin Marshall


Behold! The convoluted sociopathic logic of the corporation! Only by privatizing all water, setting a ‘market value’ for it and selling it for profit can we “actively participate in the solution of the problems that exist in the world“. Never mind that water has been a universal bounty of the earth given freely for millions of years. Never mind that 1 in 10 people on earth lack access to clean water. Never mind that the active participation in solutions of most corporations is to poison water, and render it undrinkable to create products that are generally toxic to humans and the environment.  Never mind that only 2.53 percent of earth’s water is fresh, and some two-thirds of that is locked up in glaciers and permanent snow cover, which are coincidentally being destroyed and melted away, useless; as a result of the global warming and climate change that stems from activities like infinite growth and resource extraction required to maintain a”successful and profitable future” for corporations.  And how repugnantly reality detached is the  000.1% thought  to believe that “We’ve never had it so good, we’ve never had so much money, we’ve never been so healthy, we’ve never lived as long as we do today. We have everything we want. ” Ask the 80% of the world’s population living on less than 10 dollars a day how healthy, free of wants, long lived, & how good they have it.  This man embodies the ethos and worldview of the dominant institution of human civilization on our planet. If this remains so, despite his desire to create a positive image of the world and its future, the times to come will be very bleak indeed. Think Feudalism on steroids and cocaine. Not a good scene. “

By Andrew Gavin Marshall @ Andrew Gavin Marshall:

In the 2005 documentary, We Feed the World, then-CEO of Nestlé, the world’s largest foodstuff corporation, Peter Brabeck-Letmathe, shared some of his own views and ‘wisdom’ about the world and humanity. Brabeck believes that nature is not “good,” that there is nothing to worry about with GMO foods, that profits matter above all else, that people should work more, and that human beings do not have a right to water.

Today, he explained, “people believe that everything that comes from Nature is good,” marking a large change in perception, as previously, “we always learnt that Nature could be pitiless.” Humanity, Brabeck stated, “is now in the position of being able to provide some balance to Nature, but in spite of this we have something approaching a shibboleth that everything that comes from Nature is good.” He then referenced the “organic movement” as an example of this thinking, premising that “organic is best.” But rest assured, he corrected, “organic is not best.” In 15 years of GMO food consumption in the United States, “not one single case of illness has occurred.” In spite of this, he noted, “we’re all so uneasy about it in Europe, that something might happen to us.” This view, according to Brabeck, is “hypocrisy more than anything else.”

Water, Brabeck correctly pointed out, “is of course the most important raw material we have today in the world,” but added: “It’s a question of whether we should privatize the normal water supply for the population. And there are two different opinions on the matter. The one opinion, which I think is extreme, is represented by the NGOs, who bang on about declaring water a public right.” Brabeck elaborated on this “extreme” view: “That means that as a human being you should have a right to water. That’s an extreme solution.” The other view, and thus, the “less extreme” view, he explained, “says that water is a foodstuff like any other, and like any other foodstuff it should have a market value. Personally I believe it’s better to give a foodstuff a value so that we’re all aware that it has its price, and then that one should take specific measures for the part of the population that has no access to this water, and there are many different possibilities there.” The biggest social responsibility of any CEO, Brabeck explained:

is to maintain and ensure the successful and profitable future of his enterprise. For only if we can ensure our continued, long term existence will we be in the position to actively participate in the solution of the problems that exist in the world. We’re in the position of being able to create jobs… If you want to create work, you have to work yourself, not as it was in the past where existing work was distributed. If you remember the main argument for the 35-hour week was that there was a certain amount of work and it would be better if we worked less and distributed the work amongst more people. That has proved quite clearly to be wrong. If you want to create more work you have to work more yourself. And with that we’ve got to create a positive image of the world for people, and I see absolutely no reason why we shouldn’t be positive about the future. We’ve never had it so good, we’ve never had so much money, we’ve never been so healthy, we’ve never lived as long as we do today. We have everything we want and we still go around as if we were in mourning for something.

While watching a promotional video of a Nestlé factory in Japan, Brabeck commented, “You can see how modern these factories are; highly robotized, almost no people.” And of course, for someone claiming to be interested in creating jobs, there appears to be no glaring hypocrisy in praising factories with “almost no people.”

It’s important to note that this is not simply the personal view of some random corporate executive, but rather, that it reflects an institutional reality of corporations: the primary objective of a corporation – above all else – is to maximize short-term profits for shareholders. By definition, then, workers should work more and be paid less, the environment is only a concern so much as corporations have unhindered access to control and exploit the resources of the environment, and ultimately, it’s ‘good’ to replace workers with automation and robotics so that you don’t have to pay fewer or any workers, and thus, maximize profits. With this institutional – and ideological – structure (which was legally constructed by the state), concern for the environment, for water, for the world and for humanity can only be promoted if it can be used to advance corporate profits, or if it can be used for public relations purposes. Ultimately, it has to be hypocritical. A corporate executive cannot take an earnest concern in promoting the general welfare of the world, the environment, or humanity, because that it not the institutional function of a corporation, and no CEO that did such would be allowed to remain as CEO.

This is why it matters what Peter Brabeck thinks: he represents the type of individual – and the type of thinking – that is a product of and a requirement for running a successful multinational corporation, of the corporate culture itself. To the average person viewing his interview, it might come across as some sort of absurd tirade you’d expect from a Nightline interview with some infamous serial killer, if that killer had been put in charge of a multinational corporation:

People have a ‘right’ to water? What an absurd notion! Next thing you’ll say is that child labour is bad, polluting the environment is bad, or that people have some sort of ‘right’ to… life! Imagine the audacity! All that matters is ‘profits,’ and what a wonderful thing it would be to have less people and more profits! Water isn’t a right, it’s only a necessity, so naturally, it makes sense to privatize it so that large multinational corporations like Nestlé can own the world’s water and ensure that only those who can pay can drink. Problem solved!

Sadly, though intentionally satirical, this is the essential view of Brabeck and others like him. And disturbingly, Brabeck’s influence is not confined to the board of Nestlé. Brabeck became the CEO of Nestlé in 1997, a position he served until 2008, at which time he resigned as CEO but remained as chairman of the board of directors of Nestlé. Apart from Nestlé, Brabeck serves as vice chairman of the board of directors of L’Oréal, the world’s largest cosmetics and ‘beauty’ company; vice chairman of the board of Credit Suisse Group, one of the world’s largest banks; and is a member of the board of directors of Exxon Mobil, one of the world’s largest oil and energy conglomerates.

He was also a former board member of one of the world’s largest pharmaceutical conglomerates, Roche. Brabeck also serves as a member of the Foundation Board for the World Economic Forum (WEF), “the guardian of [the WEF’s] mission, values and brand… responsible for inspiring business and public confidence through an exemplary standard of governance.” Brabeck is also a member of the European Round Table of Industrialists (ERT), a group of European corporate CEOs which directly advise and help steer policy for the European Union and its member countries. He has also attended meetings of the Bilderberg group, an annual forum of 130 corporate, banking, media, political and military elites from Western Europe and North America.

Thus, through his multiple board memberships on some of the largest corporations on earth, as well as his leadership and participation in some of the leading international think tanks, forums and business associations, Brabeck has unhindered access to political and other elites around the world. When he speaks, powerful people listen.

Brabeck’s Brain

Brabeck has become an influential voice on issues of food and water, and not surprisingly so, considering he is chairman of the largest food service corporation on earth. Brabeck’s career goes back to when he was working for Nestlé in Chile in the early 1970s, when the left-leaning democratically-elected president Salvador Allende was “threatening to nationalize milk production, and Nestlé’s Chilean operations along with it.” A 1973 Chilean military coup – with the support of the CIA – put an end to that “threat” by bringing in the military dictatorship of Augusto Pinochet, who murdered thousands of Chileans and established a ‘national security state’, imposing harsh economic measures to promote the interests of elite corporate and financial interests (what later became known as ‘neoliberalism’).

In a 2009 article for Foreign Policy magazine, Brabeck declared: “Water is the new gold, and a few savvy countries and companies are already banking on it.” In a 2010 article for the Guardian, Brabeck wrote that, “[w]hile our collective attention has been focused on depleting supplies of fossil fuels, we have been largely ignoring the simple fact that, unless radical changes are made, we will run out of water first, and soon.” What the world needs, according to Brabeck, is “to set a price that more accurately values our most precious commodity,” and that, [t]he era of water at throwaway prices is coming to an end.” In other words, water should become increasingly expensive, according to Brabeck. Countries, he wrote, should recognize “that not all water use should be regarded as equal.”

In a discussion with the Wall Street Journal in 2011, Brabeck spoke against the use of biofuels – converting food into fuel – and suggested that this was the primary cause of increased food prices (though in reality, food price increases are primarily the result of speculation by major banks like Goldman Sachs and JPMorgan Chase). Brabeck noted the relationship between his business – food – and major geopolitical issues, stating: “What we call today the Arab Spring… really started as a protest against ever-increasing food prices.” One “solution,” he suggested, was to provide a “market” for water as “the best guidance that you can have.” If water was a ‘market’ product, it wouldn’t be wasted on growing food for fuel, but focus on food for consumption – and preferably (in his view), genetically modified foods. After all, he said, “if the market forces are there the investments are going to be made.” Brabeck suggested that the world could “feed nine billion people,” providing them with water and fuel, but only on the condition that “we let the market do its thing.”

Brabeck co-authored a 2011 article for the Wall Street Journal in which he stated that in order to provide “universal access to clean water, there is simply no other choice but to price water at a reasonable rate,” and that roughly 1.8 billion people on earth lack access to clean drinking water “because of poor water management and governance practices, and the lack of political will.” Brabeck’s job then, as chairman of Nestlé, is to help create the “political will” to make water into a modern “market” product.

Now before praising Brabeck for his ‘enlightened’ activism on the issue of water scarcity and providing the world’s poor with access to clean drinking water (which are very real and urgent issues needing attention), Brabeck himself has stressed that his interest in the issue of water has nothing to do with actually addressing these issues in a meaningful way, or for the benefit of the earth and humanity. No, his motivation is much more simple than this.

In a 2010 interview for BigThink, Brabeck noted: “If Nestlé and myself have become very vocal in the area of water, it was not because of any philanthropic idea, it was very simple: by analyzing… what is the single most important factor for the sustainability of Nestlé, water came as [the] number one subject.” This is what led Brabeck and Nestlé into the issue of water “sustainability,” he explained. “I think this is part of a company’s responsibility,” and added: “Now, if I was in a different industry, I would have a different subject, certainly, that I would be focusing on.”

Brabeck was asked if industries should “have a role in finding solutions to environmental issues that affect their business,” to which he replied: “Yes, because it is in the interest of our shareholders… If I want to convince my shareholders that this industry is a long-term sustainable industry, I have to ensure that all aspects that are vital for this company are sustainable… When I see, like in our case, that one of the aspects – which is water, which is needed in order to produce the raw materials for our company – if this is not sustainable, then my enterprise is not sustainable. So therefore I have to do something about it. So shareholder interest and societal interest are common.”

Thus, when Brabeck and Nestlé promote “water sustainability,” what they are really promoting is the sustainability of Nestlé’s access to and control over water resources. How is that best achieved? Well, since Nestlé is a large multinational corporation, the natural solution is to promote ‘market’ control of water, which means privatization and monopolization of the world’s water supply into a few corporate hands.

In a 2011 conversation with the editor of Time Magazine at the Council on Foreign Relations, Brabeck referred to a recent World Economic Forum meeting where the issue of “corporate social responsibility” was the main subject of discussion, when corporate executives “started to talk about [how] we have to give back to society,” Brabeck spoke up and stated: “I don’t feel that we have to give back to society, because we have not been stealing from society.” Brabeck explained to the Council on Foreign Relations that he felt such a concept was the purview of philanthropy, and “this was a problem for the CEO of any public company, because I personally believe that no CEO of a public company should be allowed to make philanthropy… I think anybody who does philanthropy should do it with his own money and not the money of the shareholders.” Engaging in corporate social responsibility, Brabeck explained, “was an additional cost.”

At the 2008 World Economic Forum, a consortium of corporations and international organizations formed the 2030 Water Resources Group, chaired by Peter Brabeck. It was established in order to “shape the agenda” for the discussion of water resources, and to create “new models for collaboration” between public and private enterprises. The governing council of the 2030 WRG is chaired by Brabeck and includes the executive vice president and CEO of the International Finance Corporation (IFC), the investment arm of the World Bank, the administrator of the United Nations Development Programme (UNDP), the chief business officer and managing director of the World Economic Forum, the president of the African Development Bank, the chairman and CEO of The Coca-Cola Company, the president of the Asian Development Bank, the director-general of the World Wildlife Fund (WWF), the president of the Inter-American Development Bank, and the chairman and CEO of PepsiCo, among others.

At the World Water Forum in 2012 – an event largely attended by the global proponents of water privatization, Nestlé among their most enthusiastic supporters – Brabeck suggested that the 2030 Water Resources Group represents a “global public-private initiative” which could help in “providing tools and information on best practice” as well as “guidance and new policy ideas on water resource scarcity.”

Brabeck and Nestlé had been in talks with the Canadian provincial government of Alberta in planning for a potential “water exchange,” to – in the words of Maclean’s magazine – “turn water into money.” In 2012, the University of Alberta bestowed an honorary degree upon Peter Brabeck “for his work as a responsible steward for water around the world.” Protests were organized at the university to oppose the ‘honor,’ with a representative from the public interest group, the Council of Canadians, noting: “I’m afraid that the university is positioning themselves on the side of the commodifiers, the people who want to say that water is not a human right that everyone has the right to, but is just a product that can be bought and sold.” A professor at the university stated: “I’m ashamed at this point, about what the university is doing and I’m also very concerned about the way the president of the university has been demonizing people who oppose this.” As another U of A professor stated: “What Nestlé does is take what clean water there is in which poor people are relying on, bottle it and then sell it to wealthier people at an exorbitant profit.”

The Global Water Privatization Agenda

Water privatization is an extremely vicious operation, where the quality of – and access to – water resources diminishes or even vanishes, while the costs explode. When it comes to the privatization of water, there is no such thing as “competition” in how the word is generally interpreted: there are only a handful of global corporations that undertake massive water privatizations. The two most prominent are the French-based Suez Environment and Veolia Environment, but also include Thames Water, Nestlé, PepsiCo and Coca-Cola, among others. For a world in which food has already been turned into a “market commodity” and has been “financialized,” leading to massive food price increases, hunger riots, and immense profits for a few corporations and banks, the prospect of water privatization is even more disturbing.

The agenda of water privatization is organized at the international level, largely promoted through the World Water Forum and the World Water Council. The World Water Council (WWC) was established in 1996 as a French-based non-profit organization with over 400 members from intergovernmental organizations, government agencies, corporations, corporate-dominated NGOs and environmental organizations, water companies, international organizations and academic institutions.

Every three years, the WWC hosts a World Water Forum, the first of which took place in 1997, and the 6th conference in 2012 was attended by thousands of participants from countries and institutions all over the world get together to decide the future of water, and of course, promote the privatization of this essential resource to human life. The 6th World Water Forum, hosted in Marseilles, France, was primarily sponsored by the French government and the World Water Council, but included a number of other contributors, including: the African Development Bank, African Union Commission, Arab Water Council, Asian Development Bank, the Council of Europe, the European Commission, the European Investment Bank, the European Parliament, the European Water Association, the Food and Agricultural Organization, the Global Environment Facility, Inter-American Development Bank, Nature Conservancy, Organisation for Economic Co-operation and Development (OECD), Organization of American States (OAS), Oxfam, the World Bank, the World Business Council for Sustainable Development, the World Health Organization, the World Wildlife Fund; and a number of corporate sponsors, including: RioTinto Alcan, EDF, Suez Environment, Veolia, and HSBC. Clearly, they have human and environmental interests at heart.

The World Bank is a major promoter of water privatization, as much of its aid to ‘developing’ countries was earmarked for water privatization schemes which inevitably benefit major corporations, in co-operation with the International Monetary Fund (IMF), and the U.S. Treasury. One of the first major water privatization schemed funded by the World Bank was in Argentina, for which the Bank “advised” the government of Argentina in 1991 on the bidding and contracting of the water concession, setting a model for what would be promoted around the world. The World Bank’s investment arm, the International Finance Corporation (IFC), loaned roughly $1 billion to the Argentine government for three water and sewage projects in the country, and even bought a 5% stake in the concession, thus becoming a part owner. When the concession for Buenos Aires was opened up, the French sent representatives from Veolia and Suez, which formed the consortium Aguas Argentinas, and of course, the costs for water services went up. Between 1993, when the contract with the French companies was signed, and 1997, the Aguas Argentinas consortium gained more influence with Argentine President Carlos Menem and his Economy Minister Domingo Cavallo, who would hold meetings with the president of Suez as well as the President of France, Jacques Chirac. By 2002, the water rates (cost of water) in Buenos Aires had increased by 177% since the beginning of the concession.

In the 1990s, the amount of World Bank water privatization projects increased ten-fold, with 31% of World Bank water supply and sanitation projects between 1990 and 2001 including conditions of private-sector involvement, despite the fact that the projects consistently failed in terms of providing cheaper and better water to larger areas. But of course, they were highly profitable for large corporations, so naturally, they continued to be promoted and supported (and subsidized).

One of the most notable examples of water privatization schemes was in Bolivia, the poorest country in South America. In 1998, an IMF loan to Bolivia demanded conditions of “structural reform,” the selling off of “all remaining public enterprises,” including water. In 1999, the World Bank told the Bolivian government to end its subsidies for water services, and that same year, the government leased the Cochabamba Water System to a consortium of multinational corporations, Aguas del Tunari, which included the American corporation Bechtel. After granting the consortium a 40-year lease, the government passed a law which would make residents pay the full cost of water services. In January of 2000, protests in Cochabamba shut down the city for four days, striking and establishing roadblocks, mobilizing against the water price increases which doubled or tripled their water bills. Protests continued in February, met with riot police and tear gas, injuring 175 people.

By April, the protests began to spread to other Bolivian cities and rural communities, and during a “state of siege” (essentially martial law) declared by Bolivian president Hugo Banzer, a 17-year old boy, Victor Hugo Daza, was shot and killed by a Bolivian Army captain, who was trained as the U.S. military academy, the School of the Americas. As riot police continued to meet protesters with tear gas and live ammunition, more people were killed, and dozens more injured. On April 10, the government conceded to the people, ending the contract with the corporate consortium and granting the people to control their water system through a grassroots coalition led by the protest organizers.

Two days later, World Bank President James Wolfensohn stated that the people of Bolivia should pay for their water services. On August 6, 2001, the president of Bolivia resigned, and the Vice President Jorge Quiroga, a former IBM executive, was sworn in as the new president to serve the remainder of the term until August of 2002. Meanwhile, the water consortium, deeply offended at the prospect of people taking control of their own resources, attempted to take legal action against the government of Bolivia for violating the contract. Bechtel was seeking $25 million in compensation for its “losses,” while recording a yearly profit of $14 billion, whereas the national budget of Bolivia was a mere $2.7 billion. The situation ultimately led to a type of social revolution which brought to power the first indigenous Bolivian leader in the country’s history, Evo Morales.

This, of course, has not stopped the World Bank and IMF – and the imperial governments which finance them – from promoting water privatization around the world for the exclusive benefit of a handful of multinational corporations. The World Bank promotes water privatization across Africa in order to “ease the continent’s water crisis,” by making water more expensive and less accessible.

As the communications director of the World Bank in 2003, Paul Mitchell, explained, “Water is crucial to life – we have to get water to poor people,” adding: “There are a lot of myths about privatization.” I would agree. Though the myth that it ‘works’ is what I would propose, but Mitchell instead suggested that, “[p]rivate sector participation is simply to manage the asset to make it function for the people in the country.” Except that it doesn’t. But don’t worry, decreasing water standards, dismantling water distribution, and rapidly increasing the costs of water to the poorest regions on earth is good, according to Mitchell and the World Bank. He told the BBC that what the World Bank is most interested in is the “best way to get water to poor people.” Perhaps he misspoke and meant to say, “the best way to take water from poor people,” because that’s what actually happens.

In 2003, the World Bank funded a water privatization scheme in the country of Tanzania, supported by the British government, and granting the concession to a consortium called City Water, owned by the British company Biwater, which worked with a German engineering firm, Gauff, to provide water to the city of Dar es Salaam and the surrounding region. It was one of the most ambitious water privatization schemes in Africa, with $140 million in World Bank funding, and, wrote John Vidal in the Guardian, it “was intended to be a model for how the world’s poorest communities could be lifted out of poverty.”

The agreement included conditions for the consortium to install new pipelines for water distribution. The British government’s Department for International Development gave a 440,000-pound contract to the British neoliberal think tank, Adam Smith International, “to do public-relations work for the project.” Tanzania’s best-known gospel singer was hired to perform a pop song about the benefits of privatization, mentioning electricity, telephones, the ports, railways, and of course, water. Both the IMF and World Bank made the water scheme a condition for “aid” they gave to the country. Less than one year into the ten-year contract, the private consortium, City Water, stopped paying its monthly fee for leasing the government’s pipes and infrastructure provided by the public water company, Dawasa, while simultaneously insisting that its own fees be raised. An unpublished World Bank report even noted: “The primary assumption on the part of almost all involved, particularly on the donor side, was that it would be very hard, if not impossible, for the private operator [City Water] to perform worse than Dawasa. But that is what happened.” The World Bank as a whole, however, endorsed the program as “highly satisfactory,” and rightly so, because it was doing what it was intended to do: provide profits for private corporations at the expense of poor people.

By 2005, the company had not built any new pipes, it had not spent the meager investments it promised, and the water quality declined. As British government “aid” money was poured into privatization propaganda, a video was produced which included the phrase: “Our old industries are dry like crops and privatization brings the rain.” Actually, privatization attaches a price-tag to rain. Thus, in 2005, the government of Tanzania ended the contract with City Water, and arrested the three company executives, deporting them back to Britain. As is typical, the British company, Biwater, then began to file a lawsuit against the Tanzanian government for breach of contract, wanting to collect $20-25 million. A press release from Biwater at the time wrote: “We have been left with no choice… If a signal goes out that governments are free to expropriate foreign investments with impunity,” investors would flee, and this would, of course, “deal a massive blow to the development goals of Tanzania and other countries in Africa.”

The sixth World Water Forum in Marseilles in 2012 brought together some 19,000 participants, where the French Development Minister Henri de Raincourt proposed a “global water and environment management scheme,” adding: “The French government is not alone in its conviction that a global environment agency is needed more than ever.” A parallel conference was held – the Alternative World Water Forum – which featured critics of water privatization. Gustave Massiah, a representative of the anti-globalization group Attac, stated, “Should a global water fund be in control, giving concessions to multinational companies, then that’s not a solution for us. On the contrary, that would only add to the problems of the current system.”

Another member of Attac, Jacques Cambon, used to be the head of SAFEGE’s Africa branch, a subsidiary of the water conglomerate Suez. Cambon was critical of the idea of a global water fund, warning against centralization, and further explained that the World Bank “has almost always financed large-scale projects that were not in tune with local conditions.” Maria Theresa Lauron, a Philippine activist, shared the story of water privatization in the Philippines, saying, “Since 1997, prices went up by 450 to 800 percent… At the same time, the water quality has gone down. Many people get ill because of bad water; a year ago some 600 people died as a result of bacteria in the water because the private company didn’t do proper water checks.” But then, why would the company do such a thing? It’s not like it’s particularly profitable to be concerned with human welfare.

In Europe, the European Commission had been pushing water privatization as a condition for development funds between 2002 and 2010, specifically in several central and eastern European countries which were dependent upon EU grants. Since the European debt crisis, the European Commission had made water privatization a condition for Greece, Portugal, and Italy. Greece is privatizing its water companies, Portugal is being pressured to sell its national water company, Aguas do Portugal, and in Italy, the European Central Bank (ECB) and the Commission were pushing water privatization, even though a national referendum in July of 2011 saw the people of Italy reject such a scheme by 95%.

In this context, among the global institutions and corporations of power and influence, it is perhaps less surprising to imagine the chairman of Nestlé suggesting that human beings having a “right” to water is rather “extreme.” And for a very simple reason: that’s not profitable for Nestlé, even though it might be good for humanity and the earth. It’s about priorities, and in our world, priorities are set by multinational corporations, banks, and global oligarchs. As Nestlé would have us think, corporate and social interests are not opposed, as corporations – through their ‘enlightened’ self-interest and profit-seeking motives – will almost accidentally make the world a better place. Now, while neoliberal orthodoxy functions on the basis of people simply accepting this premise without investigation (like any religious belief), perhaps it would be worth looking at Nestlé as an example for corporate benefaction for the world and humanity.

Nestlé’s Corporate Social Responsibility: Making the World Safe for Nestlé… and Incidentally Destroying the World

As a major multinational corporation, Nestlé has a proven track record of exploiting labour, destroying the environment, engaging in human rights violations, but of course – and most importantly – it makes big profits. In 2012, Nestlé was taking in major profits from ‘emerging markets’ in Asia, Africa, and Latin America. However, some emerging market profits began to slow down in 2013. This was partly the result of a horsemeat scandal which required companies like Nestlé to intensify the screening of their food products.

Less than a year prior, Nestlé was complaining that “over-regulation” of the food industry was “undermining individual responsibility,” which is another way of saying that responsibility for products and their safety should be passed from the producer to the consumer. In other words, if you’re stupid enough to buy Nestlé products, it’s your fault if you get diabetes or eat horsemeat, and therefore, it’s your responsibility, not the responsibility of Nestlé. Fair enough! We’re stupid enough to accept corporations ruling over us, therefore, what right do we have to complain about all the horrendous crimes and destruction they cause? A cynic could perhaps argue such a point.

One of Nestlé’s most famous PR problems was that of marketing artificial baby milk, which sprung to headlines in the 1970s following the publication of “The Baby Killer,” accusing the company of getting Third World mothers hooked on formula. As research was proving that breastfeeding was healthier, Nestlé marketed its baby formula as a way for women to ‘Westernize’ and join the modern world, handing out pamphlets and promotional samples, with companies hiring “sales girls in nurses’ uniforms (sometimes qualified, sometimes not)” in order to drop by homes and sell formula. Women tried to save money on the formula by diluting it, often times with contaminated water. As the London-based organization War on Want noted: “The results can be seen in the clinics and hospitals, the slums and graveyards of the Third World… Children whose bodies have wasted away until all that is left is a big head on top of the shriveled body of an old man.” An official with the United States Agency for International Development (USAID) blamed baby formula for “a million infant deaths every year through malnutrition and diarrheal diseases.”

Mike Muller, the author of “The Baby Killer” back in 1974, wrote an article for the Guardian in 2013 in which he mentioned that he gave Peter Brabeck a “present” at the World Economic Forum, a signed copy of the report. The report had sparked a global boycott of Nestlé and the company responded with lawsuits.

Nestlé has also been implicated for its support of palm-oil plantations, which have led to increased deforestation and the destruction of orangutan habitats in Indonesia. A Greenpeace publication noted that, “at least 1500 orangutans died in 2006 as a result of deliberate attacks by plantation workers and loss of habitat due to the expansion of oil palm plantations.” A social media campaign was launched against Nestlé for its role in supporting palm oil plantations, deforestation, and the destruction of orangutan habitats and lives. The campaign pressured Nestlé to decrease its “deforestation footprint.”

As Nestlé has been expanding its presence in Africa, it has also aroused more controversy in its operations on the continent. Nestlé purchases one-tenth of the world’s cocoa, most of which comes from the Ivory Coast, where the company has been implicated in the use of child labour. In 2001, U.S. legislation required companies to engage in “self-regulation” which called for “slave free” labeling on all cocoa products. This “self regulation,” however, “failed to deliver” – imagine that! – as one study carried out by Tulane University with funding from the U.S. government revealed that roughly 2 million children were working on cocoa-related activities in both Ghana and the Ivory Coast. Even an internal audit carried out by the company found that Nestlé was guilty of “numerous” violations of child labour laws. Nestlé’s head of operations stated, “The use of child labor in our cocoa supply goes against everything we stand for.” So naturally, they will continue to use child labour.

Peter Brabeck stated that it’s “nearly impossible” to end the practice, and he compared the practice to that of farming in Switzerland: “You go to Switzerland… still today, in the month of September, schools have one week holiday so students can help in the wine harvesting… In those developing countries, this also happens,” he told the Council on Foreign Relations. While acknowledging that this “is basically child labor and slave labor in some African markets,” it is “a challenge which is not very easy to tackle,” noting that there is “a very fine edge” of what is acceptable regarding “child labor in [the] agricultural environment.” He added: “It’s almost natural.” Thus, Brabeck explained, “you have to look at it differently,” and that it was not the job of Nestlé to tell parents that their children can’t work on cocoa plantations/farms, “which is ridiculous,” he suggested: “But what we are saying is we will help you that your child has access for schooling.” So clearly there is no problem with using child slavery, just so long as the children get some schooling… presumably, in their ‘off-hours’ from slavery. Problem solved!

While Brabeck and Nestlé have made a big issue of water scarcity, which again, is an incredibly important issue, their solutions revolve around “pricing” water at a market value, and thus encouraging privatization. Indeed, a global water grab has been a defining feature of the past several years (coupled with a great global land grab), in which investors, countries, banks and corporations have been buying up vast tracts of land (primarily in sub-Saharan Africa) for virtually nothing, pushing off the populations which live off the land, taking all the resources, water, and clearing the land of towns and villages, to convert them into industrial agricultural plantations to develop food and other crops for export, while domestic populations are pushed deeper into poverty, hunger, and are deprived of access to water. Peter Brabeck has referred to the land grabs as really being about water: “For with the land comes the right to withdraw the water linked to it, in most countries essentially a freebie that increasingly could be seen as the most valuable part of the deal.” This, noted Brabeck, is “the great water grab.”

And of course, Nestlé would know something about water grabs, as it has become very good at implementing them. In past years, the company has been increasingly buying land where it is taking the fresh water resources, bottling them in plastic bottles and selling them to the public at exorbitant prices. In 2008, as Nestlé was planning to build a bottling water plant in McCloud, California, the Attorney General opposed the plan, noting: “It takes massive quantities of oil to produce plastic water bottles and to ship them in diesel trucks across the United States… Nestlé will face swift legal challenge if it does not fully evaluate the environmental impact of diverting millions of gallons of spring water from the McCloud River into billions of plastic water bottles.” Nestlé already operated roughly 50 springs across the country, and was acquiring more, such as a plan to draw roughly 65 million gallons of water from a spring in Colorado, despite fierce opposition to the deal.

Years of opposition to the plans of Nestlé in McCloud finally resulted in the company giving up on its efforts there. However, the company quickly moved on to finding new locations to take water and make a profit while destroying the environment (just an added bonus, of course). The corporation controls one-third of the U.S. market in bottled water, selling it as 70 different brand names, including Perrier, Arrowhead, Deer Park and Poland Spring. The two other large bottled water companies are Coca-Cola and PepsiCo, though Nestlé had earned a reputation “in targeting rural communities for spring water, a move that has earned it fierce opposition across the U.S. from towns worried about losing their precious water resources.” And water grabs by Nestlé as well as opposition continue to engulf towns and states and cities across the country, with one more recent case in Oregon.

Nestlé has aroused controversy for its relations with labour, exploiting farmers, pollution, and human rights violations, among many other things. Nestlé has been implicated in the kidnapping and murder of a union activist and employee of the company’s subsidiary in Colombia, with a judge demanding the prosecutor to “investigate leading managers of Nestle-Cicolac to clarify their likely involvement and/or planning of the murder of union leader Luciano Enrique Romero Molina.” In 2012, a Colombian trade union and a human rights group filed charges against Nestlé for negligence over the murder of their former employee Romero.

More recently, Nestlé has been found liable over spying on NGOs, with the company hiring a private security company to infiltrate an anti-globalization group, and while a judge ordered the company to pay compensation, a Nestlé spokesperson stated that, “incitement to infiltration is against Nestlé’s corporate business principles.” Just like child slavery, presumably. But not to worry, the spokesman said, “we will take appropriate action.”

Peter Brabeck, who it should be noted, also sits on the boards of Exxon, L’Oréal, and the banking giant Credit Suisse, warned in 2009 that the global economic crisis would be “very deep” and that, “this crisis will go on for a long period.” On top of that, the food crisis would be “getting worse” over time, hitting poor people the hardest. However, propping up the financial sector through massive bailouts was, in his view, “absolutely essential.” But not to worry, as banks are bailed out by governments, who hand the bill to the population, which pays for the crisis through reduced standards of living and exploitation (which we call “austerity” and “structural reform” measures), Nestlé has been able to adapt to a new market of impoverished people, selling cheaper products to more people who now have less money. And better yet, it’s been making massive profits. And remember, according to Brabeck, isn’t that all that really matters?

This is the world according to corporations. Unfortunately, while it creates enormous wealth, it is also leading to the inevitable extinction of our species, and possibly all life on earth. But that’s not a concern of corporations, so it doesn’t concern those who run corporations, who make the important decisions, and pressure and purchase our politicians.

I wonder… what would the world be like if people were able to make decisions?

There’s only one way to know.

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada, with a focus on studying the ideas, institutions, and individuals of power and resistance across a wide spectrum of social, political, economic, and historical spheres. He has been published in AlterNet, CounterPunch, Occupy.com, Truth-Out, RoarMag, and a number of other alternative media groups, and regularly does radio, Internet, and television interviews with both alternative and mainstream news outlets. He is Project Manager of The People’s Book Project, Research Director of Occupy.com’s Global Power Project, and has a weekly podcast show with BoilingFrogsPost.

Report: Poverty In America Likely To Get Worse; 46 Million ‘Living’ Below Poverty Line

In Uncategorized on January 16, 2012 at 12:26 pm

Oldspeak:” ‘Poverty in America is remarkably widespread, the number of people living in poverty is increasing and is expected to increase further, despite the recoveryMillions of Americans will be forced into poverty in the coming years even as the US hauls itself out of the longest and deepest recession since the second world war’ Dr King would be appalled.

By Chris McGreal @ U.K. Guardian:

Millions of Americans will be forced into poverty in the coming years even as the US hauls itself out of the longest and deepest recession since the second world war.

A study from Indiana University, released on Wednesday, says the number of Americans living below the poverty line surged by 27% since the beginning of what it calls the “Great Recession” in 2006, driving 10 million more people into poverty.

The report warns that the numbers will continue to rise, because although the recession is technically over, its continued impact on cuts to welfare budgets and the quality of new, often poorly paid, jobs can be expected to force many more people in to poverty. It is also difficult for those already under water to get back up again.

“Poverty in America is remarkably widespread,” concludes the study, At Risk: America’s Poor During and After the Great Recession. “The number of people living in poverty is increasing and is expected to increase further, despite the recovery.”

The white paper, drafted by the university’s school of public and environmental affairs, which is among the best ranked schools of its kind in the US, says that six years ago, 36.5 million Americans fell below the poverty line. By 2010, the number of people living in poverty rose to 46.2 million and continued to grow over the past year.

“The Great Recession has left behind the largest number of long-term unemployed people since records were first kept in 1948. More than 4 million Americans report that they have been unemployed for more than 12 months,” said the report.

John Graham, dean of the school and one of the authors of the report, said that the numbers of “new poor” will continue to rise.

“One of the big surprises is that poverty in the United States is likely to continue to increase even as the economic recovery unfolds,” said Graham. “The unique feature of the great recession is not just the high rate of unemployment, but the long duration of unemployment that millions of Americans have experienced. [For] a lot of these long-term unemployed, the job that they had won’t exist when they go back in to the labour market.”

Graham said that many of those who once held well-paid jobs will be forced to settle for lower paying work, trapping some in a permanent cycle of poverty.

“As a consequence they will be poor or near poor for a substantial period of time,” he said.

The latest census data shows that nearly one in two of the US’s 300 million citizens are now officially classified as having a low income or living in poverty. One in five families earns less than $15,000 (£9,600) a year.

The Indiana University study says that the numbers of people falling into poverty is also likely to grow because of severe cuts to state and federal welfare budgets.

“The states by their constitutions all have to have a balanced budget each year. A lot of states are already in the process of cutting back their safety net programmes at the same time that poverty is increasing,” said Graham. “Their needs are going up but the programmes are receiving less support. It’s going to continue because the revenues of state governments are not increasing as rapidly as is needed and the federal government will be under a lot of pressure because of its large deficit to decrease funding given to the states.”

The report warns that the situation is likely to become even worse if the long-term unemployed lose their jobless benefits. Congress extended them for two months at the end of the year, but it is unlikely they will be continued indefinitely.

Among the most severely affected states are Florida, Nevada and Arizona, which have been particularly badly hit by the housing foreclosure crisis, and Michigan and Ohio, which have seen the collapse of traditional manufacturing.

Minorities are among the hardest hit. More than one in four African Americans and Hispanics is officially recorded as living in poverty. About one in 10 white Americans fall below the poverty line.

“We can expect to find that the most vulnerable parts of our society are the ones who will recover most slowly from a deep recession like this. More have gone in to poverty and they’ll be slower coming out of it,” said Graham. “If you look at the educational levels and skill levels of African Americans and Hispanics, they are more vulnerable as the job market tightens. They don’t have either the extra edge in education or skills that white Americans do.”

The report says that the situation would have been much worse had it not been for the Obama administration’s 2009 federal stimulus package, which increased child health insurance for poorer families, and cut taxes for low income workers.

Still, the study says that although unemployment is officially falling, that may not be the whole story. Some workers give up looking for jobs and are no longer counted in the unemployment rate.

“Although the official rate of unemployment is declining, much of this apparent progress is attributable to the fact that many adults are giving up on the search for a job,” it said.

The report argues that a better measure of how well an economy is creating employment is the “jobs-to-people ratio”. It says that in a healthy economy the range is between 0.60 and 0.70. The US fell within that range until it fell to 0.582 at the end of 2009. It had risen only to 0.585 in November 2011.

“These data suggest that the reported progress in reducing the rate of unemployment may not be as encouraging as we think since increasing numbers of the unemployed may simply be giving up on the search for a job,” the report said.

New Census Data Shows 1 in 2 People In America Are Now Poor Or Low Income

In Uncategorized on December 15, 2011 at 9:35 am

 

Oldspeak:” It’s midnight in America. ‘Austerity Measures’ and ‘Structural Adjustment Programs‘  imposed across much of the 2nd and 3rd world have come home to roost in the 1st world. They’re beginning to bear bitter fruit. ”The reality is that prospects for the poor and the near poor are dismal.  Safety net programs such as food stamps and tax credits kept poverty from rising even higher in 2010, but for many low-income families with work-related and medical expenses, they are considered too `rich’ to qualify’. If Congress and the states make further cuts, we can expect the number of poor and low-income families to rise for the next several years”-Sheldon Danziger This is going to much get worse. Look at Greece, and you’ll see the future of the U.S. People won’t be able to ignore reality for much longer. The banksters who’ve hi-jacked our republic won’t stop until there’s no one left to reduce to debt peonage. The question is how long are Americans gonna sit idly by and let it happen? “Freedom Is Slavery”

By The Associated Press:

Squeezed by rising living costs, a record number of Americans – nearly 1 in 2 – have fallen into poverty or are scraping by on earnings that classify them as low income.

The latest census data depict a middle class that’s shrinking as unemployment stays high and the government’s safety net frays. The new numbers follow years of stagnating wages for the middle class that have hurt millions of workers and families.

“Safety net programs such as food stamps and tax credits kept poverty from rising even higher in 2010, but for many low-income families with work-related and medical expenses, they are considered too `rich’ to qualify,” said Sheldon Danziger, a University of Michigan public policy professor who specializes in poverty.

“The reality is that prospects for the poor and the near poor are dismal,” he said. “If Congress and the states make further cuts, we can expect the number of poor and low-income families to rise for the next several years.”

Congressional Republicans and Democrats are sparring over legislation that would renew a Social Security payroll tax cut, part of a year-end political showdown over economic priorities that could also trim unemployment benefits, freeze federal pay and reduce entitlement spending.

Robert Rector, a senior research fellow at the conservative Heritage Foundation, questioned whether some people classified as poor or low-income actually suffer material hardship. He said that while safety-net programs have helped many Americans, they have gone too far, citing poor people who live in decent-size homes, drive cars and own wide-screen TVs.

“There’s no doubt the recession has thrown a lot of people out of work and incomes have fallen,” Rector said. “As we come out of recession, it will be important that these programs promote self-sufficiency rather than dependence and encourage people to look for work.”

Mayors in 29 cities say more than 1 in 4 people needing emergency food assistance did not receive it. Many middle-class Americans are dropping below the low-income threshold – roughly $45,000 for a family of four – because of pay cuts, a forced reduction of work hours or a spouse losing a job. Housing and child-care costs are consuming up to half of a family’s income.

States in the South and West had the highest shares of low-income families, including Arizona, New Mexico and South Carolina, which have scaled back or eliminated aid programs for the needy. By raw numbers, such families were most numerous in California and Texas, each with more than 1 million.

The struggling Americans include Zenobia Bechtol, 18, in Austin, Texas, who earns minimum wage as a part-time pizza delivery driver. Bechtol and her 7-month-old baby were recently evicted from their bedbug-infested apartment after her boyfriend, an electrician, lost his job in the sluggish economy.

After an 18-month job search, Bechtol’s boyfriend now works as a waiter and the family of three is temporarily living with her mother.

“We’re paying my mom $200 a month for rent, and after diapers and formula and gas for work, we barely have enough money to spend,” said Bechtol, a high school graduate who wants to go to college. “If it weren’t for food stamps and other government money for families who need help, we wouldn’t have been able to survive.”

About 97.3 million Americans fall into a low-income category, commonly defined as those earning between 100 and 199 percent of the poverty level, based on a new supplemental measure by the Census Bureau that is designed to provide a fuller picture of poverty. Together with the 49.1 million who fall below the poverty line and are counted as poor, they number 146.4 million, or 48 percent of the U.S. population. That’s up by 4 million from 2009, the earliest numbers for the newly developed poverty measure.

The new measure of poverty takes into account medical, commuting and other living costs. Doing that helped push the number of people below 200 percent of the poverty level up from 104 million, or 1 in 3 Americans, that was officially reported in September.

Broken down by age, children were most likely to be poor or low-income – about 57 percent – followed by seniors over 65. By race and ethnicity, Hispanics topped the list at 73 percent, followed by blacks, Asians and non-Hispanic whites.

Even by traditional measures, many working families are hurting.

Following the recession that began in late 2007, the share of working families who are low income has risen for three straight years to 31.2 percent, or 10.2 million. That proportion is the highest in at least a decade, up from 27 percent in 2002, according to a new analysis by the Working Poor Families Project and the Population Reference Bureau, a nonprofit research group based in Washington.

Among low-income families, about one-third were considered poor while the remainder – 6.9 million – earned income just above the poverty line. Many states phase out eligibility for food stamps, Medicaid, tax credit and other government aid programs for low-income Americans as they approach 200 percent of the poverty level.

The majority of low-income families – 62 percent – spent more than one-third of their earnings on housing, surpassing a common guideline for what is considered affordable. By some census surveys, child-care costs consume close to another one-fifth.

Paychecks for low-income families are shrinking. The inflation-adjusted average earnings for the bottom 20 percent of families have fallen from $16,788 in 1979 to just under $15,000, and earnings for the next 20 percent have remained flat at $37,000. In contrast, higher-income brackets had significant wage growth since 1979, with earnings for the top 5 percent of families climbing 64 percent to more than $313,000.

A survey of 29 cities conducted by the U.S. Conference of Mayors being released Thursday points to a gloomy outlook for those on the lower end of the income scale.

Many mayors cited the challenges of meeting increased demands for food assistance, expressing particular concern about possible cuts to federal programs such as food stamps and WIC, which assists low-income pregnant women and mothers. Unemployment led the list of causes of hunger in cities, followed by poverty, low wages and high housing costs.

Across the 29 cities, about 27 percent of people needing emergency food aid did not receive it. Kansas City, Mo., Nashville, Tenn., Sacramento, Calif., and Trenton, N.J., were among the cities that pointed to increases in the cost of food and declining food donations, while Mayor Michael McGinn in Seattle cited an unexpected spike in food requests from immigrants and refugees, particularly from Somalia, Burma and Bhutan.

Among those requesting emergency food assistance, 51 percent were in families, 26 percent were employed, 19 percent were elderly and 11 percent were homeless.

“People who never thought they would need food are in need of help,” said Mayor Sly James of Kansas City, Mo., who co-chairs a mayors’ task force on hunger and homelessness

Trickle-Down Cruelty And The Politics Of Austerity

In Uncategorized on July 11, 2011 at 3:38 pm

In Philadelphia, budget cuts have led to fire departments closing on a daily rotating basis, delaying response time. (Photo: Sam Blackman)

Oldspeak:”Austerity porn functions within the current political climate to promote deficits in order to return the United States to the Gilded Age policies of the 1920s. What should be clear is that the politics of austerity is not about rethinking priorities to benefit the public good. Instead, it has become part of a discourse of shame, one that has little to do with using indignation to imagine a better world. On the contrary, shame is now used to wage a war on the poor rather than poverty, on young people rather than those economic and political forces that undermine their future and on those considered other rather than on the underlying structures and ideologies of various forms of state and individual racism.” Henry A. Giroux The fear-mongering being propagated 24-7 on your corporate news networks is designed to prepare the population for the in progress implementation of shock doctrine based “Austeriy Measures” and “Structural Adjustment Policies” which facilitate privatization of all things public to the great benefit of the Financial-Industrial Complex, and a complete full functioning corptalitarian state. For their invaluable help in selling the U.S. out from under its people, the corptalitarian elites, ensure continued control by spending untold millions  for their minions in politricks with (thanks to Citizens United vs. F.E.C.) reelection campaigns and other rarely disclosed perks and advantages.

 

By Henry A. Giroux @ Truthout:

There is a certain irony in the fact that the party of debt has now become a flock of austerity hawks. This is the same Republican Party that gave us two wars, an increase in military spending and whopping loss of tax revenues due to tax breaks for mega-rich corporations and the wealthy Americans. Nobel Prize-winning economist Paul Krugman raises the question of what happened to the federal government budget surplus of 2000 and insists that the answer is, “three main things. First, there were the Bush tax cuts, which added roughly $2 trillion to the national debt over the last decade. Second, there were the wars in Iraq and Afghanistan, which added an additional $1.1 trillion or so. And third was the Great Recession, which led both to a collapse in revenue and to a sharp rise in spending on unemployment insurance and other safety-net programs.”(1) All told, President George W. Bush added $4 trillion to the national debt – and there was no debate about raising the debt ceiling at that time, which was raised seven times.(2) What is often missed in these discussions is that deficits have always been the objectives of hard right-wing Republicans and some equally conservative democrats who see them as an excuse for cutting social benefits and generating massive amounts of inequality that benefit the rich.(3) Michael Tomasky further legitimizes this claim with the charge that “the Republican Party cares nothing about the public debt. In fact, it wants more … It is the party of debt. It is the party of deficits. It is the party of recession. It is the party of unemployment. It is the party of inequality. And it is the party of middle-class stagnation and slippage…. They scream about crisis because what they desire is to use the crisis as an excuse to do things to this country that the hard right has wanted to do for 30 years.”(4) What Tomasky leaves out is that the current crop of right-wing Republicans controlling the shots in Washington and various states appear to revel in “a deep urge to inflict pain.”(5) How else to explain that during recent debt negotiations between leaders of both parties, the Republican leadership walked out as soon as the Democrats suggested the need to talk about not only cutting programs that benefit the poor, but also limiting tax breaks for corporate jets, hedge-fund managers, the obscenely wealthy and corporations.

According to the children of Ayn Rand, Milton Friedman and Ronald Reagan, “free-market economics,” individual interests and needs trumped social needs; brilliant individuals were more qualified to run government and largely blossomed within institutions committed to making money; freedom was largely defined as freedom from regulation; and any government that passed policies to provide social protections, regulate corporations, or lessen inequality were either grossly authoritarian or unwise. In this scenario, especially under the administration of Ronald Reagan, government was declared the enemy and the market was turned into a form of casino capitalism as a series of policies were inaugurated in which there was a sustained assault on the working and middle classes through “the busting of unions, the export of millions of decent-paying jobs and the transfer of enormous wealth to the already rich. The tax rates for the wealthiest were slashed about in half. Greed was incentivized.”(6) Accordingly, the ideologues of casino capitalism believed that as the rich and corporations paid less taxes and inequality was left unchecked, society as a whole would benefit, wealth would trickle down. Of course, what has actually happened in the last decade with the unchecked, Wild West, Bush-type casino capitalism is that wages for workers have stagnated; the top 1 percent of the population has gotten fabulously wealthy; health care has deteriorated for the vast majority of the population; schools have been turned into test centers; the nation’s infrastructure has been allowed to rot; and, more recently, millions of people have lost their jobs, homes, and hope. Moreover, two-thirds of US corporations paid no taxes. For example, Bank of America has not paid any taxes for the last two years.(7) At the same time, increases in inequality in the United States dwarf the rest of the world, while increases in executive pay undercuts any claim we might have on democracy.

The working and middle classes have been condemned to a new form of neoliberal tyranny “in which there can be only one kind of value, market value; one kind of success, profit; one kind of existence, commodities; and one kind of social relationship, markets.”(8) The global recession has intensified the war on the American public, as professionals and politicians who make up a global business class now displace democracy with the call for austerity and, in doing so, produce a hidden order of politics in which the “demand for the people’s austerity hides processes of the uneven distribution of risk and vulnerability.”(9) Under the guise of austerity, politically motivated attacks are now being waged on young people, low-skilled workers, the poor, African-Americans and the elderly. On the other hand, austerity measures against the rich are almost nonexistent. Richard D. Wolff provides the details in looking at what he calls “some alternative ‘reasonable’ kinds of austerity.” He writes:

Serious efforts to collect income taxes from US-based multinational corporations, especially those who use internal pricing mechanisms to escape US taxation, would generate vast new federal revenues. The same applies to wealthy individuals. The US has no federal property tax on holdings of stocks, bonds and cash accounts (states and localities levy no such property taxes either). If the federal government levied a 1 per cent tax on assets between $100,000 to 499,000 and 1.5 per cent on assets above $500,000, that would raise much new federal revenue (everyone’s first $100,000 could be exempted just as the existing US income tax exempts the first few thousands of dollars of individual incomes). Exiting the Iraq and Afghanistan disasters would do likewise. Ending tax exemptions for super-rich private educational institutions (Harvard, Yale, etc.) and for religious institutions (church-goers would then need to pay the costs of their churches) would be among the many other such alternative “reasonable” austerity measures. Comparable alternatives apply – and are being struggled over – in other countries.(10)

One side effect of this blatant, if not corrupt mode of austerity is what I call the politics of trickle-down cruelty. This is evident in policies in which austerity-based cuts are used to reward corporations and billionaires with tax breaks, while simultaneously exploiting the budget crisis in order to eliminate protections provided by the welfare state. The resulting reductions in state spending have drastically cut many basic social services so as to endanger the lives of many young people and others at the margins of society structured in massive financial inequality. For example, in Philadelphia “fire departments have been closed on a daily rotating basis” delaying response time. One unfortunate and possibly preventable consequence occurred “when two children were pulled from a burning row home too little too late…. Mike Kane of the Philadelphia Firefighters Union Local 22 said there was no way to tell whether the children would have lived had the fire station been open, but if not for the brownouts, ‘maybe them kids would have had a shot.'”(11) In Arizona, Gov. Jan Brewer signed a bill that effectively denied health care to over 47,000 low-income children.(12) More recently, a 59-year-old man in Gastonia, North Carolina, robbed a bank for $1 so he could get health care in America. He handed the teller a note asking for only a dollar and medical attention. He sat in a chair in the bank waiting for the police to arrive. As he pointed out to the press, he had lost his job of 17 years as a Coca Cola deliveryman and ended up taking a part-time position in a convenience store. But the work was backbreaking, compounded by the fact that he had arthritis, carpal tunnel syndrome and a painful lump on his chest. With no health insurance, he decided that his best option was to rob a bank and get health care in prison.(13) We also hear about the return of debtors’ prisons, which were abolished in the US in the 19th century. The Minneapolis Star Tribune reports that “people are routinely being thrown in jail for failing to pay debts” and that in some cases “people stay in jail until they raise minimum payment. In January [2010] a judge sentenced a Kenney, Ill., man to ‘indefinite incarceration’ until he came up with $300 toward a lumber yard debt.”(14) Joy Uhlmeyer, a 57-year-old patient care advocate spent 16 hours in jail because she missed a court hearing over a credit card debt.(15) Surely, it is hard to miss the irony of putting someone in jail for not paying a small debt while, as Matt Taibbi has pointed out, law enforcement under the Obama regime has not convicted a “single executive who ran the companies that cooked up and cashed in on the phony financial boom – and industry wide scam that involved the mass sale of mismarked, fraudulent mortgage-backed securities – has ever been convicted.”(16) These financial crooks hid billions from investors and ripped off the American people so as to cause untold suffering and hardship. And, yet, law enforcement does not consider them liable for the crimes they committed, and the Obama administration rewards them with a weak regulatory laws and an open season on obscene bonuses. Such stories serve as flashpoints about a society. And as Zygmunt Bauman points out, even though they may tell us little about deeper causal connections, they “prod the imagination. And sound an alert. They appeal to the conscience as well as to survival instincts…. [They also show] that the ideal that one can ‘do it alone’ is a fatal mistake which defies the purpose of self-concern and self-care.”(17)

All of these examples point to the collateral damage invoked by a casino capitalism that now takes austerity as its clarion call to gut social protections and weaken the rights of labor and unions. Moreover, austerity in this instance is designed to reward the fabulously wealthy while imposing in some cases poverty, suffering and severe hardship on those marginalized by race, disability and class. For many people, these examples I have noted above suggest that the writing is on the wall regarding their future and the message is dark indeed. Complaints by right-wing politicians and conservative pundits about the growing federal deficit and their call for a harsh politics of austerity are both hypocritical and disingenuous. Hypocritical, given their support for massive tax breaks for the rich, and disingenuous, given their blatantly transparent goal of implementing a market-based agenda that imposes the burden of decreased government services and benefits on the backs of the poor, young people, the unemployed, the working class and middle-class individuals and families. As Wolff’s quote suggested above, in this transparent scenario, austerity measures apply to the poor, but not to the rich, who continue to thrive under polices that produce government bailouts, support deficit-producing wars, tax breaks for the wealthy and deregulation policies that benefit powerful corporations. The conservative and right-wing politicians and policy wonks calling for shared sacrifices made in the name of balancing budgets have no interest in promoting justice, equality and the public good. Their policies maximize self-interest, support a culture of organized irresponsibility, and expand the pathologies of inequality, military spending and poverty. Austerity porn functions within the current political climate to promote deficits in order to return the United States to the Gilded Age policies of the 1920s.(18)

This conservative assault is not just about the enactment of reactionary government policies, it is also about the proliferation of a culture of cruelty whose collateral damage is harsh and brutalizing, especially for young people, the unemployed, the elderly, the poor, and a number of other individuals and groups now bearing the burden of worst economic recession since the 1920s. Cruelty in this instance is not meant to simply reference the character flaws of the rich or to appeal to a form of left moralism, but to register the effects especially since the 1970s of how the institutions of capital, wealth and power merge not only to generate vast modes of inequality, but also to inflict immense amounts of pain and suffering upon the lives of the poor, working people, the middle class, the elderly, immigrants and young people.(19) What should be clear is that the politics of austerity is not about rethinking priorities to benefit the public good. Instead, it has become part of a discourse of shame, one that has little to do with using indignation to imagine a better world. On the contrary, shame is now used to wage a war on the poor rather than poverty, on young people rather than those economic and political forces that undermine their future and on those considered other rather than on the underlying structures and ideologies of various forms of state and individual racism.

As the welfare state is dismantled, it is being replaced by the harsh realities of the punishing state, as social problems are increasingly criminalized and social protections are either eliminated or fatally weakened. The harsh values of this new social order can be seen in the increasing incarceration of young people, the modeling of public schools after prisons, harsh anti-immigration laws and state policies that bail out investment bankers but leave the middle and working classes in a state of poverty, despair and insecurity. For poor youth of color and adults, the prison-industrial complex is particularly lethal. Michelle Alexander has pointed out that there are more African-American men under the control of the criminal justice system than were enslaved in 1850 and that, because of the war on drugs, four out of five black youth in some communities can expect to be either in prison or “caught up in the criminal justice system at some point in their lives.”(20) In states such as Georgia, Alabama and South Carolina, new immigration laws “make it impossible for people without papers to live without fear. They give new powers to local police untrained in immigration law. They force businesses to purge work forces and schools to check students’ immigration status. And they greatly increase the danger of unreasonable searches, false arrests, racial profiling, and other abuses, not just against immigrants, but anyone who may look like some officer’s idea of an illegal immigrant…. The laws also make it illegal to give a ride to the undocumented, so a son could land in jail for driving his mother to the supermarket, or a church volunteer for ferrying families to a soup kitchen.”(21) The Obama administration fares no better on punishing immigrants. In fact, its stance on immigration suggests something about its own misplaced priorities in that it refuses to prosecute Wall Street crooks and CIA thugs who tortured men, women and children in Iraq. And, yet, “it has used its criminal justice system and law enforcement apparatus to deport 393,000 people, at a cost of $5 billion.”(22) White-collar crooks produce global financial havoc because of their crooked deals and go scot-free while illegal immigrants looking for work that most Americans will not perform are put in jail.

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The trickle-down cruelty of the anti-tax, anti-public and anti-government extremists is on full display in Minnesota where Republicans have refused Gov. Mark Dayton’s call for a tax on “the 7,700 Minnesotans who make more than $1 million a year” in order to raise revenue to address the state’s budget deficit. Rather than tax the rich, Republican legislators have called for slashing “billions from … education, health care and safety programs” and, in order to get their way, have literally shut down state government.(23) The result is that 22,000 workers have been laid off, child care subsidies have dried up and essential services for the poor have been suspended, all so taxes on the rich will not be raised. The mean-spirited Gov. of New Jersey, Chris Christie, has followed the same playbook and has used his veto to eliminate $1.3 billion in spending, most of it for schools, Medicaid and aid to cities. But he also cut much smaller items favored by Democrats, like programs to help abused children and provide legal aid to the poor.

The culture of cruelty, illegal legalities and political illiteracy can also be seen in the practice of socialism for the rich. This is a practice in which government supports for the poor, unemployed, sick and elderly are derided because they either contribute to an increase in the growing deficit or they undermine the market-driven notion of individual responsibility. And yet, the same critics defend without irony government support for the ultra-wealthy, the bankers, the permanent war economy, or any number of subsidies for corporations as essential to the life of the nation, which is simply an argument that benefits the rich and powerful and legitimizes the deregulated Wild West of casino capitalism. As public services are eliminated, health insurance cut for over a million kids and teachers and public workers are laid off, corporate profits have soared and Wall Street executives are having a bonus year. The average worker in the United States made $39,000 in 2010 and got a 0.5 percent pay increase, which amounted to $40,100. According to The New York Times, “the median pay for top executives at 200 big companies last year was $10.8 million. That works out to a 23 percent gain from 2009.”(24)

The moral obscenity that characterizes such salaries becomes clear at a time when 14 million people are looking for work, millions are losing their homes and thousands of families are trying to survive on food stamps. How can any society that calls itself democratic and egalitarian justify salaries that are so grotesquely high that it is difficult to imagine how such wealth can be spent? For example, how can anyone justify paying CEOs such as Philippe P. Dauman, the head of Viacom, $85 million in 2010? Or for that matter, the $32.9 million paid to Michael White of DirecTV?(25) The hidden order of politics and culture of cruelty comes into play when it is revealed that Mark G. Parker, the CEO of Nike, got $13.1 million in 2010 and cut 1,750 jobs, while Peter L. Lynch, the CEO of Winn-Dixie, got $5.3 million and cut 2000 jobs. One of the worst offenders is Michael Duke, the CEO of Wal-Mart, who got $18.7 million in pay in 2010 while eliminating 13,000 jobs.(26) Even more alarming is that some of these bonuses paid to risk-taking bankers were paid for, in part, with taxpayer’s money. For example, Benjamin M. Friedman writing in The New York Review of Books claims that this is precisely what happened in the case of the bonuses paid to Citigroup’s executives. He writes:

Despite the destruction of so much of the stockholders’ value and notwithstanding the enormous taxpayer assistance, Citi’s management announced in the spring of 2009 that it was paying out $5.3 billion on bonuses for 2008, including payments of more than $5 million apiece to forty-four employees of the bank. Because of the $45 billion investment of AARP and TIP money, by 2009 the US government was Citigroups’s largest shareowner. Hence the issue these lavish bonuses raised was not merely a private firm’s right to set its employees’ compensation. What Citi’s management was giving away was, in significant part, the taxpayers’ money. Yet the Obama administration voiced no objection, at least not publicly.(27)

What is daunting about all of these figures beyond being partly subsidized by taxpayer money and the human costs in hardship and suffering is that executive pay raises not only deepen inequality in the United States, lay off workers in order to deepen the pockets of rich CEOs, but they also concentrate enormous amounts of political, economic and social power in the hands of a few individuals and corporations. In the end, such practices contribute to massive amounts of suffering on the part of millions of Americans; they corrupt politics and they undermine the promise of a viable democracy. Frank Rich expands this critique in arguing, “As good times roar back for corporate America, it’s bad enough that CEOs are collectively sitting on some $1.9 trillion? America’s total expenditure on the Iraq and Afghanistan wars over a decade has been $1.3 trillion. But what’s most galling is how many of these executives are sore winners, crying all the way to palm each while raking in record profits and paying some of the lowest tax rates over the past 50 years.”(28)

Of course, this form of economic Darwinism is not enforced simply through the use of a government in the hands of right-wing corporate extremists, a conservative Supreme Court or reliance upon the police and other repressive apparatuses; it is also endlessly reproduced through the cultural apparatuses of the new and old media, public and higher education, as well as through the thousands of messages and narratives we are exposed to daily in multiple commercial spheres. In this discourse, the economic order is either sanctioned by God or exists simply as an extension of nature. In other words, the tyranny and suffering that is produced through the neoliberal theater of cruelty is coded as unquestionable, as unmovable as an urban skyscraper. Long-term investments are now replaced by short-term gains and profits, while at the same time, compassion is viewed as a weakness and democratic public values are scorned because they subordinate market considerations to the common good. Morality in this instance becomes painless, stripped of any obligations to the other. As the language of privatization, deregulation and commodification replaces the discourse of the public good, all things public, including public schools, libraries and public services, are viewed either as a drain on the market or as a pathology. In addition, inequality in wealth and income expands, spreading like a toxin through everyday life, poisoning democracy and relegating more and more individuals to a growing army of disposable human waste.(29)
But there is more at stake than an increase in the hard currency of human suffering and the theater of trickle-down cruelty; there are also disturbing signs that US society is moving toward an authoritarian state largely controlled by corporations and a grotesquely irresponsible financial elite.(30) A market-driven society is not synonymous with democracy and the privileges of the rich and the corporate elite do more to crush democracy than uplift society as a whole. Any society that allows the market to constitute the axis and framing mechanisms for all social interactions has not just lost its sense of morality and responsibility; it is given up its claim on any vestige of a democratic future. Market fundamentalism along with its structure of extreme inequality and machinery of cruelty has proven to be a death sentence on democracy. The time has come to not only demystify the authoritarianism inherent in casino capitalism and the political and institutions that mimic its policies, practices and values, but to rethink not only what a real democracy might look like, but also what it will take to actually organize to make it happen.

Footnotes:

1. Paul Krugman, “The Unwisdom of Elites,” The New York Times, (May 8, 2011) p. A23, online here.

2. Paul Krugman, “To the Limit,” The New York Times (June 30, 2011), online here.

3. James Crotty, “High Deficits were the Objective of Right Economics,” The Real News, (May 10, 2011), online here.

4. Michael Tomasky, “Why The GOP Loves the Debt,” The Daily Beast (July 1, 2011), online here.

5. Paul Krugman, “The Urge to Purge,” New York Times (June 27, 2011), onlinehere.

6. Robert Parry, “If Ayn Rand and the Free Market fetishists were Right, We’d be Living in the Golden Age – Does This Look Like the Golden Age to You?” Alternet (June 28, 2011), online here.

7. Allison Kilkenny, “2/3 of US Corporations Pay Zero Federal Taxes,” AlterNet (March 27, 2011), online here.

8. Lawrence Grossberg, “Caught in the Crossfire: Kids, Politics and America’s Future” (Boulder, CO: Paradigm Publishers, 2005), 264.

9. Gesa Helms, Marina Vishmidt and Lauren Berlant, “Affect and the Politics of Austerity: An Interview Exchange with Lauren Berlant,” Variant 39/40, Winter 2010, online here.

10. Richard D. Wolff, “Austerity: Why and for Whom?” In These Times, (July 15, 2010), online here.

11. Rania Khalek, “Death by Budget Cut: Why Conservatives and Some Dems Have Blood on Their Hands,” AlterNet (June 13, 2011), online here.

12. Ibid.

13. Diane Turbyfill, “Bank Robber Planned Crime and Punishment,” Gaston Gazette (June 16, 2011).

14. Chris Serres and Glenn Howatt, “In Jail for Being in Debt,” StarTribune.com (June 9, 2010), online here.

15. Ibid.

16. Matt Taibbi, “Why Isn’t Wall Street in Jail?” Rolling Stone (February 16, 2011). Online here.

17. Zygmunt Bauman, “Collateral Damage: Social Inequalities in a Global Age” (Cambridge, Polity Press, 20110), p. 39.

18. James Crotty, “High Deficits were the Objective of Right Economics,” The Real News, (May 10, 2011), online here.

19. This issue is taken up in great detail in Zygmunt Bauman, “Collateral Damage: Social Inequalities n a Global Age” (London: Polity Press, 2011).

20. Cited in Dick Price, “More Black Men Now in Prison System Then Were Enslaved,” LA Progressive, (March 31, 2011), online here. See also Michelle Alexander, “The New Jim Crow: Mass Incarceration in the Age of Colorblindness” (New York: New Press, 2010).

21. Editorial, “It Gets Even Worse,” The New York Times (July 3, 2011), p. A16.

22. Matt Taibbi, “Why Isn’t Wall Street in Jail?” Rolling Stone (February 16, 2011), online here.

23. Editorial, “Antitax Extremism in Minnesota,” The New York Times (July 6, 2011), p. A18.

24. Pradnya Joshi, “We knew They Got Raises. But This?” The New York Times (July 2, 2011), p. BU1

25. Ibid.

26. Josh Harkinson, “10 CEOs Who Got Rich by Squeezing Workers,” MotherJones (May 12, 2011), online here.

27. Benjamin M. Friedman, “Cassandra Among the Banksters,” The New York Review of Books (June 23, 201), online here.

28. Frank Rich, “Obama’s Original Sin,” New York (July 3, 2011), online here.

29. On the pernicious effects of inequality in US society, see Tony Judt, “Ill Fares the Land” (New York: Penguin Press, 2010). Also see, Göran Therborn, “The Killing Fields of Inequality,” Open Democracy, April 6, 2009, online here.

30. There are too many books on this issue to cite. Some of the more notable are Sheldon S. Wolin, “Democracy Incorporated: Managed Democracy and the Specter of Inverted Totalitarianism” (Princeton, NJ: Princeton University Press, 2008); Henry A. Giroux, “Against the Terror of Neoliberalism” (Boulder, CO: Paradigm Publishers, 2008); Chris Hedges, “Death of the Liberal Class” (Toronto: Knopf Canada, 2010); and Jacob S. Hacker and Paul Pierson, “Winner-Take-All Politics” (New York: Simon and Schuster, 2010).

 

 

Paving The Road To A Hungrier, Unhealthier, And Less-Educated Nation

In Uncategorized on June 23, 2011 at 11:35 am

Oldspeak:” More Change I Can’t Believe In. ‘Austerity Meaures’ ” have come home too roost. The same harsh and counter-productive cuts to education, social programs, public sector institutions/services/workers/jobs, we’ve seen undertaken in foreign countries via “Structural Adjustment Programs” implemented by U.S. backed “lending institutions” like the IMF, The World Bank, and USAID, that usually hit the poorest and most vulnerable the hardest, are being proposed by politricians right here in the U.S. of A. When President Obama starts proposing cuts to community organizing in poor neighborhoods, it tells you all you need to know. The rich matter most, the poor and everyone in between matter least. Witness the sad fact that income inequality in America is at Great Depression Era levels. The number children living in poverty is at an all time high. if it’s true that “A nation’s greatness is measured by how it treats its weakest members.” , America’s greatness doesn’t amount to very much atal. Meanwhile, the financial-military-industrial complex is doing just GRAND!

By Deborah Weinstein @ Other Words:

The number of poor children had already grown by 2.1 million in 2009 over pre-recession levels, with continuing high joblessness among parents raising concerns that poverty will continue to worsen for some time. Since kids who spend more than half their childhood in poverty earn on average 39 percent less than median income as adults, we can expect lasting costs that will hurt the nation’s future economic growth.

And yet, a majority of House lawmakers want to narrow the deficit by making things worse for today’s kids.

If House Budget Committee Chairman Paul Ryan’s proposal takes effect, or the even more extreme House Republican Study Committee’s budget plan prevails, the nation’s economic future will inevitably get bleaker. Those proposals would reduce the food assistance, medical care, and education available to poor children. When children don’t get adequate nutrition, research shows that they are more likely to suffer illnesses and hospitalizations. Poor health can trigger developmental problems that take a toll on school performance.

The House passed Ryan’s proposal in April along party lines. Not one Democrat supported it and all but four Republicans voted in favor of it. In the Senate, five Republicans joined every member of the chamber’s Democratic majority in rejecting it.

The House budget, best known for Ryan’s proposal to radically change and mostly privatize Medicare, would also reduce spending on food stamps by 20 percent over the next decade. If such a deep cut were implemented through caseload reductions, it would mean 8 million fewer people receiving food stamps, according to the Center on Budget and Policy Priorities. If instead the cuts took effect by reducing the amount of assistance each family receives, a family of four would lose $147 a month.

Since about half of food stamp recipients are children, such cuts would hurt the chances that those kids will graduate from high school or college, increasing the likelihood of lifelong poverty. The Republican Study Committee’s cuts are far deeper. They would cut food stamps in half over 10 years.

These proposals would have similarly harsh impacts on medical care. The House budget cuts, if implemented solely by reducing eligibility, would deny Medicaid to nearly half the people who rely on it now, according to the Kaiser Family Foundation. More likely, there would be some combination of denying people altogether and reducing the care or increasing the costs for those who remain eligible. Either way, the impact would be severe. Again, the Republican Study Committee proposal would inflict even deeper cuts. That proposal calls for halving Medicaid spending by 2021.

How would these plans handle education spending? They’d cut it. We know that the House budget would cut education by nearly one-fifth next year and by a quarter by the end of the decade, with 1.7 million fewer low-income college students qualifying for Pell Grant scholarships. U.S. military spending, which nearly totals the combined military expenditures of every other nation on earth, wouldn’t be cut at all. The Republican Study Committee doesn’t spell out most of its education cuts, but it would cut all appropriations except for military spending by about 70 percent by 2021. Education funding would be slashed from preschool through college.

The GOP deficit reduction plans rely solely on massive domestic spending cuts that would heap more trouble on the recession generation’s already grim prospects. That’s counterproductive. Slower economic growth will cut tax revenue and make it harder to nix the government’s persistent budget deficit problem. Balanced-budget amendments and other proposals to place drastic limits on total federal spending would result in cuts at least as deep as the Ryan and Republican Study Committee budget plans.

There’s a better way. We can take a more responsible and effective approach that would gradually narrow the deficit and spare the programs that low-income Americans rely on through a combination of fair revenue increases and spending cuts that don’t exempt the military. Otherwise, we’ll wind up denying opportunities for a middle-class life to millions of our children.

Deborah Weinstein is the executive director of the Coalition on Human Needs, an alliance of national organizations working together to promote public policies that address the needs of low-income and other vulnerable populations. www.chn.org

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