Tag: capitalism

Both Sides of the River

(Cross-posted at Wild Wild Left)

In the aftermath of a tragedy 50 years ago, Woody Guthrie wrote a song about the deaths of migrant workers in a plane crash in Los Gatos Canyon.  They were being deported, and when they died, the newspapers didn’t consider it necessary to mention their names.  They’d been born on the other side of the Rio Grande River, which rendered them inferior to white, church-attending Americans and negated the need for any respect.  

The skyplane caught fire over Los Gatos Canyon,

A fireball of lightning that shook all our hills.

Who were all these friends all scattered like dry leaves?

The radio said they were just deportees . . .

Woody Guthrie didn’t consider them to be just deportees.  They were human beings, their lives mattered, so he honored them with a eulogy, he said goodbye to them.  

He knew a river runs through this land of capitalism.  The wealthiest one-percent of Americans live on one side of that river.  The rest of us live on the other side.  To the wealthiest one-percent, we have no names.  Our lives don’t matter, we’re just migrant workers in their fields, we’re just miners in their mines, we’re just numbers on a balance sheet, and unless we cross that river and scatter them like dry leaves on the wind, workers in their fields and miners in their mines is all our children will ever be.

 

Tale of 2 Countries: Small Business, Growth, and Green Jobs

The USA:

Jobs: Small Business Loans Are The Mountain Blocking Economic Recovery

Phillip Williams — Apr 17, 2010

Why Small Business Loans Are Important

The economy has lost 8.4 million jobs since the start of the recession. Small businesses employ the majority of the American workforce, although the largest single employer is still the federal government.

When the economy starts to recover small businesses rely on loans to bring up their inventory levels. Large banks and smaller institutions have been reluctant to introduce new loans after the failure of a large number banking institutions.

Small banks do not have the resources to start lending again, and the number of new loans have gone down since the start of the recession.

Banks that received funds from the Troubled Asset Relief program. The larger banks that were branded as too big to fail have also reduced the number of new loans they make to small businesses. They have reinvested the funds in lower-return, lower-risk treasury bonds instead.

Warren Buffet is a Capitalist first and foremost.

Original article: http://www.omaha.com/article/2…

ht: http://www.democraticundergrou…

The Crisis of Neoliberalism

Dr. Gerard Dumenil, of the Political Economy Research Institute (PERI) at The University of Massachusetts, is one of the world’s foremost theorists of neoliberalism and economic crises, and is the author of numerous influential books, many of which have been translated into several languages, including Capital Resurgent: Roots of the Neoliberal Revolution (2004) and his forthcoming The Crisis of Neoliberalism: From the Subprime Crash to the Great Contraction.

Dumenil here talks with Paul Jay of The Real News about the history and development of neoliberal ‘economics’…



Real News Network – March 30, 2010

Transcript here

Rooney: Finding a Good Job

If you were glued to the reports on the Health Care debate and vote last night and didn’t switch over to 60min you might want to listen to Andy.

He hits a number of true buttons in this short take, especially as one looks at the job openings, most are for paper pushers, and not a whole hell of alot of those, not for those who actually do the work that keeps those pushing papers or working in their cubes on their computers!

30 Rock and the Arrival of Late Capitalism

Ordinarily I’ve avoided referencing pop culture in my posts, but forgive me again for doing so once more.  I’ve been inspired to write on this topic based on watching this past Thursday’s 30 Rock episode.  Its main idea implies that this naggingly persistent Great Recession was largely a result of those in big business who went for the easy, predictable sell and in so doing completely eliminated the idea of risk.  In the episode, a fictional company that has recently bought NBC’s parent company, General Election, has devised a scheme to generate an endless supply of guaranteed income–namely, hundreds of channels of pay-per-view internet pornography.  The revelation doesn’t sit well with Jack Donaghy, the Alec Baldwin character, a top ranking executive who is used to committing brainpower and elbow grease to creating innovations that sell, regardless of whether they are environmentally friendly, exploitative, gimmicky, or completely useless.  As he puts it, the new company has made his entire skill set obsolete and reduced making money to a robotic perpetual motion machine.

Many pertinent issues are raised in the episode.  Among the most notable is the suggestion as to whether or not consumerism and consumer capitalism ought to be viewed as some sort of necessary evil.  Jack Donaghy is frequently an unsympathetic character on the show, but he does represent the very American idea that buckets of money can be made for those clever and resourceful enough to come up with a product or concept the public will clamor for, regardless of how stupid, pointless, or wasteful it might be.  This has indeed been the criticism many of us on the Left have made over the years when we contemplate our obsession with the acquisition of possessions to no real positive end.   When played off the idea that even necessary evil has been corrupted by an unimaginative scheme which promises guaranteed rates of return and no possible margin for error, the larger question is whether our current economic downturn was, in part, caused by risk-averse thinking.  Have we exchanged necessary evil for unnecessary evil?

Instead of taking a chance and risking gaining either great wealth or a setback, it appears that some have ventured to circumvent the old ways.  Though I am certainly no fan of the capitalist system, it is my understanding that, based on its rules, anyone and everyone is given the opportunity to try their hand at making money.  Some efforts succeed and some efforts fail, certainly, but that’s just the nature of it.  Many have made fortunes and lost them outright and many have achieved much in the way of capital through the process of trial, error, and dogged determination.  But when that enterprising spirit and simultaneous revelation that one achieves when realizing that life itself is a series of ups and downs—when that become obscured by a desire to take the easy way out—then we all are simultaneously inhuman and poorer in the end.

Whether or not we believed that the American Dream was a dream deferred or a bad dream in the first place, it is interesting to ponder whether it has been royally short-circuited.  To be sure, there were certain economic theorists and historians who had long proposed that something like this was an inevitability.  Those in particular who espoused the theory of late capitalism would seem to be validated by the episode’s premise.  We who have long spoken out against the injustices and inequalities of the existing system have nonetheless learned to live with it, and the idea that a brand new enemy may have taken the place of the old is certainly worth contemplating.  Still, predicting the ultimate demise of capitalism is a bit like setting a date for the end of the world, if not the Second Coming.  As it is written, brothers and sisters, you don’t need anyone to write to you about times and dates.  For you know very well that the day of the Lord will come like a thief in the night.  

Capitalism Driving Humanity’s Downfall

Raw Story, March 6th, 2010

In his film Capitalism: A Love Story [set to be released on DVD and Blu-ray Monday], Michael Moore squares off with the free-market system for its role in leveraging the United States’s wealth into the hands of a few.

But in one clip cut from the documentary — which Moore provided exclusively to RAW STORY — he interviews Pulitzer Prize-winning New York Times reporter Chris Hedges, who explains how capitalism is actually contributing to the very downfall of the human race and the “degradation of the planet.”

“All sorts of people who have spent their lives studying climate change, from Bill McKibben on down, have warned us that we don’t have a lot of time left,” Hedges said. “So it’s not just that capitalism has destroyed our economic system and hijacked our political system, but it literally is extinguishing the system that sustains life. If that’s not thwarted soon…then we will begin to see massive dislocations, environmental refugees, further depleting of natural resources. Overpopulation is also an issue. The UN estimates that by 2050 the size of the planet will double.”

The very concept of capitalism, Moore declares in the film, is the problem because it inevitably leads to a system where the richest few control the means of production as well as the levers of power — leading to a “plutonomy,” a term used in a leaked Citigroup memo from 2005, in which the finance juggernaut concluded that the United States is no longer a democracy.

In the interview, Hedges decries America’s turn toward supply-side economics over the last three decades as the cause of stagnating middle class incomes, contrasting it with the increasingly lavish fortunes of the wealthy and the aid they often receive from the government at the expense of working people.

Imagining post-capitalism

Generally, this is an invitation to the reading public to imagine a post-capitalist future: what would it look like, how would people do things, and so on.  In it, I consider what the greater meaning of such a project would be, and what the main considerations of the project are, in hopes my readers will take up the gauntlet and continue the thought-project.

(crossposted at Orange to provoke the capitalists)

Is Bipartisanship Good for the Voting Public?

As proposed while still a candidate, President Obama’s version of bipartisanship envisioned a kind of Utopian ideal where reaching across the aisle would be a frequent gesture, not just an occasional product of odd bedfellows.  My own interpretation of the concept is not nearly so pie-in-the-sky as much as it is practical in theory.  Of course, I never expect to see it implemented because legislators hardly ever do anything practical these days, in theory or not.  My modest proposal would seek to level the playing field between parties, particularly on a state-by-state basis, since even though running up the score might be satisfying to some, everyone at heart loves a close game.  True party parity would certainly strike fear into the lovers of the status quo and the current office holders themselves, but the past several months have proven to me that many of the current batch of bumbling idiots are long past their shelf life and need to be thrown out altogether.  

Though a handful of so-called purple states exist in this country, most states give primary allegiance to either one party or the other.  As we know, the South is usually reliably GOP by default and the Northeast usually Democratic.  I recognize that due to recent electoral decisions we know that this is not always the case, but taking into account the whole picture, this statement is largely accurate.  The battles we fight with each other these days are partially a result of how we have dug in, trench warfare style, facing across an literally invisible, but still nonetheless highly perceptible partition.  Purple states are certainly more prevalent now than at any other time before in our history, but their development is relatively slow and since government is indebted most strongly to historical precedent, particular when one observes the tortured and convoluted congressional and state districting schemes, the blue state/red state divide is still very much with us.  Indeed, I cannot for the life of me envision a point where it will give way to something else altogether, though I would certainly rejoice if it were.

When any region or state calcifies around a particular party allegiance, competition for available seats is minimal and new blood rarely gets the chance to serve the people.  In both red and blue states, running for elective office often requires one to wait for an existing Representative or Senator to die, whether they be in the State legislature or the U.S. Congress.  While I of course recognize that my allegiance to the Democratic party is paramount in my affections, I also know that true democracy rarely makes any headway with de facto lifetime appointments of any legislative body.  That sort of arrangement is for something else altogether and if we are to preserve the checks and balances of our Founders, we would be wise to start here.  The bipartisanship I strive for would be something close to equality between each state party in representation, redistricting, and in funds.  Even putting one of these proposals into effect would make a difference.  To be sure, I don’t deceive myself.  This would face stiff opposition from all sides and even if it were seriously considered, likely not much would come of it.  Still, we need to at least contemplate resolutions like this, even if they may not be workable in reality because they are the only way we’re going to be able to begin to get the system to work for us, not against us from here on out.

One of the many ironies is that one would think that Republicans would embrace this plan, since it falls in line with their pro-private sector, pro-capitalist ideal.  In a pure, unadulterated capitalist system, competition and innovation is essential to the success of the market and the economy.  What’s good for the goose must surely be good for the gander. Surely the GOP couldn’t find much objectionable in this, my most modest proposal.  Even so, many entrenched GOP movers and shakers would counter this suggestion by substituting term limits instead.  To me, however, term limits would be a poor substitute and be far from effective, which is why I have always opposed them outright.  If one never changes the political landscape of a state or a region, all term limits would really do is hand the baton off to another person of the same stripes and ideological identification.  In that case it would merely be the latest example of “meet the new boss, same as the old boss”.      

If we really could manage something close to legislative and party parity, then it would be much easier to hold the feet of politicians to the fire.  Certainly they would have to worry more about losing their seat and undeniably they would need to pay closer attention to constituent needs, but I don’t think either of those outcomes are a bad thing.  As it stands now, we have a still-majority, veteran Democratic caucus in the Senate who seem quite content to place its own needs and priorities above those of the average American citizen.  If every Representative or Senator, regardless of party, recognized that unless Congress or any state legislative body produced clear cut legislative success that they were likely to no longer have a seat, then I daresay we probably would see some real reforms for a change.  If members of both parties had to fear being booted out on not just or or two but every election cycle, we wouldn’t see a constant tit-for-tat between Republicans and Democrats, nor any of these exasperating back and forth power swaps whereby the party in power obtains majority status purely by capitalizing on the mistakes of the opposite party, not by actually doing anything to win control based on merit.  A drawback in this system would be that it would be easier for competent elected representatives to be swept out based on the irrational demands of an angry electorate, one much like the Tea Party members prevalent now, but much of life is some combination of luck and chance and why should politics be any different?        

If we are a massively diverse plurality society of differing and competing points of view, I see more, not less gridlock and more demoralizing legislative defeats in our future.  Arguably a lack of across-the-board equality in so many different areas is responsible for everything from crime to bigotry.  We have underscored and articulated the problem time and time again and have gotten no further to really going after the real causes.  Doing so would require unselfishness and sacrifice, of course, two qualities that are always in short supply.  But what I do know is that we can’t keep doing the same thing we’ve always done and expect a different result.  I do believe in the power of reform, but I do also recognize how change often is a product of desperation and last-ditch-effort; I don’t want things to get that bad before we really act.  I’m not sure how much more dysfunctional our government needs to get before we adopt new strategies that will return power to the hands of an informed citizenry.  The system failed us, certainly, but we are supposed to be the ones whose active hand in the proceedings puts us and everyone back on course.  How we do it is not nearly as important as when we do it.  I hope that day is soon.      

Narrowing the Gap Between the Industrial Age and the Information Age

During the State of the Union address, President Obama noted what a slew of other previous Presidents have noted–that the United States of America needs to start exporting goods again.  Few people can disagree with a statement like this, but what Obama, nor any of his predecessors have ever discovered is precisely what one would need to trade with other countries and in what form this new invention would take.  If were wise enough to know, I’d probably be well on my way to being a very wealthy man, so I don’t underestimate the challenge in front of us.  However, though I believe that the capitalist system caters more to the selfish side of us more than the altruistic one, with selfishness does come innovation for the sake of maximum material gain, and in that regard, perhaps our basest instincts might come to everyone’s aid, at least for a time.

Careworn phrases like “good old fashioned American ingenuity” have been utilized over and over again for at least a century, insinuating strongly that there was no problem beyond our grasp which would not eventually render a solution.  And, honestly, I don’t think that this mode of thought nor of rhetorical framing has ever really gone away altogether.  But what I do think is that we don’t often look for these signs so much for where they are so much as where we think they ought to be.  Everyone can drive by and see the looming, titanic mass of buildings that house a paper processing plant or a textile mill, but the more subtle evidence of, say, a software design firm is much less visible to our senses and our psyches.  Even though we may be headed towards a purely service-based economy, other developing nations are only now in the process of beginning their industrial phase of growth.  Though our example might be the means by which they set their sights and chart their course, one must also crawl before one walks.  

If we were all more or less on the same page the whole world round regarding economic parity, then exporting commodities would be a much easier task.  Right now we do retain some residual elements of an earlier day, but often our products can’t compete globally because they cost more to produce and thus they cost more to purchase.  I honestly believe that we can be indebted to one of two stances in this instance, but not both.  Either we pay people more in line of a fair wage, granting them adequate benefits— recognizing that this will ensure that many countries can always buy what they need at a cheaper price from another source, or we slash costs to the bone and with them salaries and benefits.  It goes without saying that I would never advocate the second position, but for the future going forward that model might be the only option that makes our products look attractive and compelling to another country or region’s buyer, based on the current state of affairs as they exist today.

Speaking specifically about food, for example, I note that our own cultural attitudes are often to blame for much of the disparity.  The more affluent among us can afford to be socially conscious by means of pocketbook and pay two times as much for products at a Whole Foods or a locally-grown produce Farmer’s Market.  The poorest, of course, simply aren’t afforded this option.  Americans might cut corners or scrimp to buy a wide screen television or to save up to take a vacation, but never towards food.  Food is always supposed to be readily available, unquestionably cheap, and supremely varied.  Organic food is a kind of innovation of sorts, since though its stated purpose is to use older methods of cultivation, it still combines elements of more modern technological strategies with the tried-and-true methods of a different time.  Though it would never willfully adopt this label, organic food is itself a hybrid concept—one that seeks the middle ground between old and new.  

These, of course, are previously established channels and instances.  As for what product or products would find favor among the consumers of the globe, one assumes upon first thought that the most likely innovation would come in the form of some new technological breakthrough, one perhaps tied closely to the computer or the internet.  However, like organic food, perhaps it would be best to seek for something with a foot in old ways and a foot in newer formulations.  The most enterprising soul would be wise to recognize that products can be designed purely with the intention of always having a reliably steady stream of buyers and demand, or that they can be modified in the hopes of both making money and pulling in less developed countries and regions more economically in line with ours.  Straddling the gap between the way it has always been and they way it needs to be is partially why we are at the impasse in which we find ourselves.  While I do believe that the phrase “ethical capitalism” is a complete oxymoron, I do also recognize that if we are left with a system unable to be discarded for quite some time, it would be much easier if we limited as many disparities and points of difference between people as we could, since then it would be able for us to better address the remaining and still quite numerous problems left over.  

We are still in the middle of a shift between an industrial economy and an information-based one, but at times our benchmarks and guideposts are indebted to a by-gone epoch.  Nostalgia is strong and so is the resistance to the way things were always supposed to be.  For instance, I grew up in Birmingham, Alabama, a city which was forced to completely reinvent itself after the collapse of its native steel industry in the 1970’s.  In so doing, it embraced banking and a world-class health care center based around a university, both of which are the two largest employers in the metro area.  We might be wise to emulate their example, which is far from the only instance that a city teetered on a knife’s edge between survival and disaster and managed to righted itself.

It is a short-sighted, short-term gain over long-term ultimate resolution means of thinking that got us into our current mess.  American must learn that delayed gratification provides temporarily discomfort but eventual, eternal satisfaction.  Greed drives humans to go for the quick cash-in and the gravy train, instead of a more modest, but still very satisfying profit.  I don’t ascribe to a theory of American exceptionalism because I am too aware of the times at which we fall short, though I also recognize that we are far from the only country, society, or culture which has a tendency to opt for the quick fix rather than engaging in the soul-searching and introspection which leads towards true resolution.  Lasting success is based on hard work and research, not the accidental score.  

Neither do I count myself among the numbers of those who adopt a cynical tact towards American identity and greater purpose that seeks fault first and rarely gives room for success.  Somewhere between those who believe that our best days are yet to come and those who assert that we are soon going the way of the UK into second-tier country status is something close to the reality of the situation.  Still, what we require right now is a new kind of skill set, one willing to work with existing trends, rather than fight them, build up native industry without seeking salvation in the form of a foreign company with an open checkbook, pay a bit more than usual for household staples with the understanding that increased cost doesn’t always mean money wasted, and recognize that in a truly fair world, it shouldn’t matter who is number 1 or number 500.  If money is what makes the world go round, we can’t begin to get any other unfair construct in check until we ensure that monetary policy levels the playing field.  Real equality does not trickle-down and it never will.  

It’s the capitalist system, s.: a rhetoric

In light of recent discussion of national economic issues, I would like to revisit Bill Clinton’s 1992 slogan, “it’s the economy, stupid.”  Here I will look at the rhetorical clout offered in various promises, against the background of economic and political history, while arguing that it’s the entire capitalist system which needs to be revisited.

(Crossposted at Orange)

Liberalism and Wall Street

Original article, by Barry Grey, via World Socialist Web Site:

In an op-ed piece published January 10 entitled “The Other Plot to Wreck America,” New York Times columnist Frank Rich denounces the criminal actions of Wall Street executives and the official cover-up of their operations. He correctly asserts that the havoc created by the bankers poses a threat to the American people “on a more devastating scale than any Al Qaeda attack.”

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