TOWARD A STRATEGY FOR DISMANTLING THE NEW WORLD ORDER

A blueprint for action. The central challenge for humanity is how to defeat malignant corporate power, the inevitable outgrowth of global capitalism in our age. 

rickStaggenborg

SOLDIERS FOR PEACE INTERNATIONAL

“One of the objectives of any strategy must be to find a way to get partisans to understand that neither party represents them…”

When you mention the developing “New World Order” to people who still think there is a two-party system in the United States, eyes roll.
Anything you have to say afterward is dismissed before it is out of your mouth. Many Republicans are closer to understanding what it is than are partisan Democrats. They recognize that there has been a fundamental change in the way the federal government operates, starting with the first banking bailout. They acknowledge the effects of financial manipulation of the economy, but mistake it for a socialist takeover by “liberals” rather than the fascist coup that it is. Partisan Democrats believe that the only problem is Republican politicians and the solution merely to elect more Democrats, who they equate with “champions of the People.”  Any debate framed by partisan politics is therefore a distraction from the real issues.
The obvious truth is that both parties have been systematically corrupted by powerful financial elites who put their interests over those of the rest of us. Therefore, one of the objectives of any strategy must be to find a way to get partisans to understand that neither party represents them. Liberals and conservatives are already beginning to work together on selected issues. If we can connect these issues to a larger agenda and convince partisans that the issues are more important than whether a candidate is a Republican or a Democrat, it is possible to develop a strategy to take back America for the People.  Congress already ignores the clear will of the People on many critical issues. The only way we can change that is to work together.  We must agree that our overarching goal is representative democracy.  If we can put aside ideological differences, it is possible to pressure our elected representatives to act according to the common will. Americans have proven capable of putting the candidate over the party when given a reasonable choice. They will do it again if they understand that it is the only way to make their votes count. We can worry about consensus on other issues after we get the attention of Congress by taking out a few entrenched corporate puppets.
With election campaigns having become largely a matter of who can generate the most funding and corporations and the wealthy free to spend unlimited sums to influence elections, it is delusional to think that voters can influence decisions in Washington before strong campaign finance reform is instituted. We must find a way to guarantee that members of Congress know their jobs depend on supporting a constitutional amendment to effectively ban corporate expenditures to influence elections while limiting the amount individuals can spend to buy the candidates of their choice. The only way to do this is to make support for such an amendment the litmus test in every Congressional campaign where a candidate of any party can be found who will pledge to amend the Constitution.
The first goal for assuming popular control of the United States government and restoring national sovereignty to all nations is to define the fundamental problem in a way that most people agree on. We then have to educate average Americans and citizens around the world about the danger of allowing control of the US government by the economic elite. This common understanding is necessary to find a solution, since Americans must speak with one voice to merit the claim of representing the will of the People. Citizens of other nations must stand with them against the same global financiers who control their governments, directly or indirectly.  It is critical that those with the biggest audiences outside the corporate media understand and communicate the urgency of putting aside partisan, national, cultural and religious differences to save humanity from perpetual economic slavery and all that that entails. Ultimately, the survival of human civilization —and the planet—as we know it may depend on it. Failure to check the power of corporations with trillions of dollars in assets in the fossil fuel industry will doom millions as the result of global climate instability.
For those who question the existence of a relatively small group of individuals so powerful that they can manipulate the global economy, consider this:
1) 147 of the largest international corporations hold 40% of the assets and collect 60% of the profits of over 43,000 transnational corporations. Almost all of the top 25 are financial institutions. The most influential individuals in each are also members of the Boards of Directors of others. They are at the top of the pyramid of the global economic elite whose power we must attack.
2) Through this means of interlocking directorships and financial resources that dwarf those of even the United States, banks have come to control key economic sectors including energy, telecommunications, insurance and health care in addition to a financial industry that generates 40% of US GDP, wealth that the common citizen never sees.
3)  Six corporations control virtually all of American mainstream media: Disney, Time Warner, Viacom, Newscorp, CBS and NBC. Corporate donors heavily influence the content of “public” TV and radio in the US.
4)  It is estimated that there is far more than enough money held offshore by wealthy citizens to pay off the US debt.
Most Americans have almost no knowledge of how the economy really works, having been brainwashed into buying the myth of the free market. This is the essential assumption of the Washington consensus. The other demonstrably false tenets of this neoliberal model are that global free trade is inevitable, that endless growth is possible and that national economies struggle in it only if they do not adhere to financial and monetary policies that allow the rich to accumulate enough wealth that it magically trickles down to those who are willing to work hard enough.
This is an economic strategy that in the final analysis is nothing but a scheme cooked up by international financiers to consolidate their control until they essentially run everything through their proxies in governments and corporate intermediaries they own.  As taxpayers around the world accumulate massive debt to the very individuals who crashed the global economy, the global economic elite counsels austerity. This leads to slashing of government services, job loss in nations with no industrial base or excess capacity in the face of reduced demand and finally, the selloff of government assets to pay the interest on the accumulated debt.  As job losses mount and wages and salaries decline, the tax base is undermined. This is magnified by corporate and individual tax breaks for the rich in an ultimately self-defeating cycle since the worker is the only source of real wealth. Paper money is only a promise of payment by a government so deeply indebted to those who control the printing press that most politicians must serve the interests of Wall Street if they value their jobs.
Americans are starting to grasp the enormity of the fraud perpetrated on them, but are far from organizing effectively to do anything about it. It was considered a major victory that Larry Summers, one of the chief architects of the global Ponzi scheme in derivatives, was not selected as Chairman of the Fed, replacing his co-conspirator Tim Geithner as he exits through the revolving door between Wall Street and government. A real victory would be to see the two of them in prison, yet none of  the principle criminals responsible for the global economic meltdown has been prosecuted. Meanwhile, “too big to fail” banks used bailout money to buy failed financial institutions for pennies on the dollar, making them even more powerful.
Here is the difference between most “socialist” nations and those which by definition are fascist:  In a centralized socialist system, the political class generally controls the economic elite and they work in tandem to promote the interests of both.  Venezuela and some other Latin American countries are notable exceptions to this rule.  In fascist countries, it is the other way around.  In banana republics like the US, corporations control the political elite.
Note that this definition of fascism does not require a dictator, the only thing lacking in the US. There is no dictator, but a small oligarchy of powerful individuals who have no concern for the good of the nation,  its people or that of any other nation. There is no need for a dictator in a fascist nation whose people have willingly given control of their government to the economic elite in exchange for promises of endless wealth.
The “shining city on the hill” promised by Reagan was built on sand. It was a mirage, becoming more distant the nearer Americans were told it was. The collapse was inevitable, as the whole system was based on credit backed only by worthless derivatives. Since the total value of the derivatives market is several times the global GDP as a result of failure to impose real reforms, the next crash will be much more catastrophic.
If fascism is defined as corporatism, then all the elements are present in the United States. A police state apparatus is in place. People have been brainwashed into accepting an extreme version of nationalism known as “American Exceptionalism.” The government has imposed the most intrusive surveillance methods ever devised.  War, always regarded by most as inevitable, has become endless. Until recently, these have been accepted as the price for a false sense of security. What most activists aware of these problems have missed is how they are related to each other. They must understand these relationships so that they can connect the dots for the population at large. That is the basis for developing a strategy for the progressive movement as a whole. Fortunately, recent events have made that much easier.
To reach our goal of establishing representative democracy, our strategy must build on the partnerships we are forming across ideological divides on critical issues such as domestic surveillance, the NDAA and the pursuit of world domination by endless war.  All of these are related to the global war of terror, which is in reality a global war on national sovereignty and democracy. Its economic counterparts are the Trans Pacific Partnership and the proposed Trans Atlantic Partnership with Europe. While general recognition of the danger of these massive free trade agreements has been slow to build, the phony outrage of European governments over US corporate spying revealed by Snowden has put the brakes on the latter. That gives us a chance to make Americans realize that the ultimate goal of these agreements is to make national governments subject to the demands of transnational corporations, regardless of the interests of the people of any of the subject nations. That should alarm both liberals and conservatives who hold national sovereignty as an unshakable principle of peaceful coexistence on the one hand and economic self-determination on the other.
Neoliberalism and neoconservatism are two sides of the same coin, best described as neofascism. The first seeks to establish global corporate dominance by economic coercion, while the other is a policy of militarily destroying any nation that stands in the way. On these issues, there is no gridlock and no partisan divide. The majority of Democratic and Republican politicians support both. While Americans continue to divide themselves into liberals and conservatives and argue nonsense with each other about who is responsible for destroying the American dream, the corporate criminals responsible remain at large, laughing all the way to their respective banks.If there are an “us” and “them,” they are the 99% versus the 1%. No one can claim to represent the 99% if we cannot persuade those who fail to understand the problem of our common interests.  We have to abandon the model of politics as civil war and build alliances based on mutual interests if we are going to use the power of our numbers to assure that our children will know the real freedom that comes from the absence of economic coercion. That is the nation Americans were promised and that the rest of the world aspired to emulate. Another world is possible, but it will require forging a united international front against fascism and war.

ABOUT THE AUTHOR

RICK STAGGENBORG, MD, founder of FB’s Soldiers for Peace International (SPFI), is a dedicated social justice /authentic democracy activist working to build a viable, revolutionary alternative to the rigged game of American party politics. 

2 COMMENTS:

  1. Thank you for providing such clear and coherent commentary on the real state of the world today. This is vital information.

    Replies

    1. Thanks for reading and commenting, Skywalker. I hope that you will share the ideas with others.

      It is past time for us to get a discussion going about how to build a revolutionary movement. Most prominent writers are focusing solely on the problems and perhaps some defensive actions, while ignoring the fact that you cannot build a movement to deal with 10,000 problems separately.

      You have to attack the root problem, and that will require a strategy to build a united international front against fascism and war.

      _________

      ITERATIONS

      1. THURSDAY, SEPTEMBER 19, 2013




Transnational Capitalism

Capitalism-Isnt-Working-Another-World-is-Possible

by Robert Hunziker, UK Progressive
(
See also Poll: 42% Say Capitalism Not Working For US  in the Appendix section)

The world’s epicenter of capitalism is the United States, and its reach/power/influence circumnavigates the globe. The elites of the capitalist class are no longer tied to territoriality or driven by national competition. “U.S. capitalism has expanded its reach by morphing into a Transnational Capitalist Class.” according to William Robinson (Univ. of Calif.) Global Capitalism and 21st Century FascismAljazeera, May 2011.

 

The driving force that binds together this elite cadre is free market capitalism; it is the heartbeat of a worldwide network of capitalists that thrive off profits and wealth creation. Their nonpareil world order is driven by money which equates to success, power, collegiality, and increasingly, as this new world order coalesces into the most formidable political entity in the history of humankind, democratic nation-states lose the legacy of the Age of Enlightenment, which played such a major role in the French Revolution (1789-99) and the American Revolution (1775-83), contributing to the Declaration of Independence (1776), and the U.S. Bill of Rights (1791)… stripping away national identities.

The notion that a company or corporate executive or wealthy entrepreneur is bound by an allegiance to their country of origin is passé. The elite capitalists of today are bound to one another, not to countries. They meet at the same conferences, like the World Economic Forum in Davos, Switzerland, or the The Bilderberg Group annual geopolitic forum, or in Asia it is the Boao Forum on China’s Hainan Island each spring, or the Aspen Institute’s Ideas Festival, or Herb Allen’s Sun Valley gathering for media moguls, or the Google Zeitgeist conference, all defining the characteristics of today’s plutocrats; they are forming a global community, and their ties to one another are increasingly closer than their ties to the multitudes back home.

They attend the same operas and polo matches, stay at the same 5-star hotels, lease the same private jets, dine at the same 5-star restaurants, meet Bono, and ceaselessly travel the globe together, with homes on every continent, residing wherever the weather is seasonally most favourable. Their allegiances extend well beyond the borders of their nation-states of origin, and they could care less about the various underling classes of society in any particular country where they do business.

This new global elite, according to Chrystia Freeland (Global Editor at Large, Reuters, who traveled with, and mingles with, the elites), The Rise of the New Global EliteAtlantic Magazine, Jan./Feb. 2011: “Perhaps most noteworthy, they are becoming a transglobal community of peers who have more in common with one another than with their countrymen back home. Whether they maintain primary residences in New York or Hong Kong, Moscow or Mumbai, today’s super-rich are increasingly a nation unto themselves.”

This federation of convenience by the global elite is a lingering problem for the lower classes in America. The U.S.-based CEO of one of the world’s largest hedge funds told Chrystia Freeland that his firm’s investment committee often discusses the question of who wins and who loses in today’s economy. In a recent internal debate, he said, one of his senior colleagues argued that the hollowing-out of the American middle class didn’t really matter. “His point was that if the transformation of the world economy lifts four people in China and India out of poverty and into the middle class, and meanwhile means one American drops out of the middle class, that’s not such a bad trade.” Notice the CEO’s reference to  “not such a bad trade” as representative of free market lingo, i.e., “trade.” Everything is measured in trade terms, like statistics… if you look in the mirror, you’ll see the reflection of a commodity.

This viewpoint is typical of how the global ruling class thinks, and proof positive of it is reflected in today’s politics in America. The right wing embodies this same viewpoint by striving to strip the federal government of public welfare services, privatizing governmental assets, and undercutting benefits to society at large, especially via manipulation of the federal tax code. This same occurrence is happening in real time right now in Greece, Spain, and Portugal as the cadre of elite technocrats out of Brussels, de facto capital of the EU, dictate nation-state policies to those three forlorn countries. The world’s elites love hard times/recessions because of the set up. It makes it easier for them to strip away government largess via austerity programs that they force upon governments, and it allows for undercutting the wages of average citizens as well as dismantling of governmental regulations. This, in turn, prompts protestors to congregate in the streets of capital cities, but over time, the capitalist class waits them out, temporarily residing in one of their homes elsewhere, away from danger, and with time on their side, the capitalists win.

Upon reading Chrystia Freeland’s article in Atlantic Magazine, one comes away with the impression the elite capitalists look down with disdain upon the masses of people, expressing a contempt for those in society who do not have the personal merit to rise to the occasion of wealth and power. Meritocracy is their biblical source, not equality and fraternity. These are hackneyed terms from ‘America of old’ and no longer applicable in the new technologically enhanced world, which itself is the major source of many of the new self-made wealthy.

This global ruling class controls the levers of an emergent trans-national state apparatus of global decision-making and orders emanate from the IMF, World Bank, the EU, and the WTO. The ruling bloc of this world order consists of chieftains of global corporations and financial conglomerates, major players in the dominant political parties of the world, media conglomerates, and technocratic elites.

Several thousand people, who all play in the same sandbox, control the world of finance and politics, similar to the faceless/nameless/shameless fictional elites in the TV series The X-Files. In that series, the ‘Smoking Man’ is the only personality from amongst the elite cadre that is recognized on an on-going basis; he is C.G.B.Spender, the public face of the “Syndicate,” which is a shadow government and highly secretive organization. As the Smoking Man says, “If people were to know of the things that I know… it would all fall apart.” Similarly, one wonders what those ‘things’ are in today’s world, and there are definitely cracks in the veneer of this new capitalistic world order.

For example, “Market capitalism has proven to be a remarkable engine of wealth creation, but if it continues to function in the next 25 years as it has in the past 25, we are in for a violent ride or, worse, a serious breakdown in the system itself. That sounds dire, and it is,” Global Capitalism at Risk. What are you Doing About it?  by Joseph L. Bower, Herman B. Leonard, and Lynn S. Paine, Harvard Business Review, Sept. 2011. This article co-written by three professors at Harvard University pinpoints a festering problem that may be impossible to address because, as the article goes on to relate: “The leaders we talked to identified various forces that could severely disrupt the global market system in the decades ahead… these forces arise from multiple sources. Some are fueled by negative consequences of the market system and feedback into it in disruptive ways. Others arise from sources external to the system. Still others relate to….” Frankly, the multiplicity of the financial problem is the problem! The world of finance is a mind-boggling complexity of derivatives overlying derivatives superimposed upon CMOs interlocking with CDSs and residing within the depths of major brokerages and banks, deep in their vaults for nobody to see in full living color. The legendary investor Sir John Templeton summed up the financial monster in two words, writing a memorandum to close friends and family before his death, as he anticipated the future, “Financial Chaos.” World banking/finance is a multi-headed hydra monster of global proportions that may bring the world of capitalism down to its knees, prompting police state intervention to maintain social order. The early stages of this phenomenon have already appeared, and historians may one day earmark the summer of 2007 as the start of the Age of Financial Calamity!

According to William Robinson: Transnational capital has been able to break free of nation-state constraints to shift the correlation of class and social forces worldwide sharply in its favour and to undercut the strength of popular and working class movements around the world. One new structural dimension of 21st century global capitalism is a dramatic expansion of the global superfluous population or that portion marginalized and locked out of productive participation … constituting some one-third of humanity. The need to assure the social control of this mass of humanity living in slums gives a powerful impetus to neo-fascist projects and facilitates the transition from social welfare to social control, otherwise known as police states. Over time, this system becomes ever more violent and the ability of economic power to determine electoral outcomes opens the door for 21st century fascism to emerge without a rupture in electoral cycles and/or a constitutional change.

The door for 21st century fascism has more than opened. It has been blown off the hinges starting with the U.S. Patriot Act, which act violates the U.S. Constitution and which act was rammed down the throats of the U.S. Congress, whose members did not even read the document, by the Bush Administration, implying that any members who voted against the hurried-bill would be blamed for any further attacks at a time when the nation was braced for a second attack.

Another example of impending fascism occurred when President Obama signed the National Defense Authorization Act, which act negates the writ of habeas corpus, the most powerful cornerstone of civil rights since the Magna Carta. Subsequently, May 2012, U.S. District Judge Katherine B. Forrest overruled the domestic military detention provisions of the act, an act that was roundly supported by Democrats and Republicans.

This is a clear, and extremely troubling, clarion call for how far legislators will go to strip U.S. citizens of their rights. According to Republican presidential candidate Ron Paul, “American individual liberties are being stripped away.”  The elites contend the negation of individual rights is foisted upon the government in order to maintain civil order, and their lackeys in Congress take bait with open-arms.

As transnational capitalism gains momentum, the chieftains of major U.S. international corporations feel less, and less, empathy towards their homeland and more akin to a world-state wherein the entire planet is their haunt. Their quest for profits dictates a worldly view that brushes aside nation-state regulations that interfere with profits, and their disdain for the peoples of any given nation-state leads to statist political leanings, meaning a concentration of economic controls and planning in the hands of a centralized government for control of individual nation-states whilst worldwide trade is subjected to free market capitalism. This course of action is already evident in Europe where nation-states like Portugal are being dictated to by a centralized body of technocrats, the EU. Likewise, this is happening in America where the Central Bank has become dictator of the markets whilst the global corporations on the Dow Jones Industrial Average carry on in their own markets around the world, splashing strong profits, in part, because of neoliberal tendencies that discriminate between which nation-states offer the cheapest labor and the weakest regulations. The common denominator of global corporations is cheap labor; they hover like bees around the queen wherever cheap labor is to be found.

As a result of an assortment of extremely powerful economic and political forces intertwined within transnational capitalism, it is reasonable to assume the various classes in American society will continue to experience a significant downgrade of lifestyle as the transnational capitalists comb the world for the cheapest labor and the loosest regulations.

In time, America itself will become a target for transnational capitalists’ manufacturing plants & facilities as American wages and benefits continue to stagnate and as right-wingers attack governmental regulations and privatize government assets.

As Lenin said, “Fascism is capitalism in decay.”

ABOUT THE AUTHOR
Robert Hunziker (MA, economic history, DePaul University) is a freelance writer and environmental journalist whose articles have been translated into foreign languages and appeared in over 50 journals, magazines, and sites worldwide, like Z magazine, European Project on Ocean Acidification, Ecosocialism Canada, Climate Himalaya, Counterpunch, Dissident Voice, Comite Valmy, and UK Progressive. He has been interviewed about climate change on Pacifica Radio, KPFK, FM90.7, Indymedia On Air and World View Show/UK.

 

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APPENDIX

Poll: 42% Say Capitalism Not Working For US

Capitalism Isn't Working Another World is Possible
By yellowsnapdragon, www.my.firedoglake.com/yellowsnapdragon
(Originally September 28th, 2013)

Over Easy: Freedom and Capitalism Don’t Mix

Did you know that 42% of Americans believe that capitalism hasn’t worked out so well for us? According to a Brookings Institution’s July survey, more than a quarter of Americans say capitalism is working “not too well” while 16% say capitalism is working “not at all well.”

“There is no democracy in Capitalism.”

These numbers are shocking, frankly. You may recall a time way back before 2007 when such things were simply not said in polite company. Economic calamity and dirty hippies pitching tents on sidewalks across the country may have destigmatized anti-capitalist ideas just enough that some academic in an ivory tower decided to ask a question in a survey. Surprisingly, that survey got published by an institution of some repute. Regular people answered, and it turns out that more than 4 out of 10 of us don’t care much for our sacred system of unfettered free markets.

Richard Wolff’s new article at Truthout suggests that the problem may not lie in what the left considers the usual suspects of the failures of capitalism, namely free markets and private ownership. Wolff writes:

Capitalist enterprises exclude most workers from key decisions: what, how and where to produce and how to use net revenues (in Marx’s terms, the enterprise’s “surplus value”). Capitalist enterprise decision-makers include only enterprise owners (e.g., major shareholders) and the boards of directors they select.

The problem, then, is that there is no democracy in Capitalism. Ownership of an enterprise is not particularly important as long as the decisionmaking about finances are determined democratically by the workers who spend most of their waking hours toiling for the enterprise. Those workers are unlikely to outsource labor, pay a huge salary to the CEO at the expense of everyone else, or close up shop and move the operation overseas.

More to the point, how can democracy really exist in a country like ours where most of us do not participate in the decision making where we spend so much of our lives? If workers can’t democratically control their economic lives, are they really free?




One of the most powerful documentaries on 9/11—ever.

Is the US or the World Coming to an End? — Paul Craig Roberts

It will be one or the other.

Yada, yada, yada...yada. Nothing but hot air.

Paul Craig Roberts
SOURCE: Author’s site

2014 is shaping up as a year of reckoning for the United States.

Two pressures are building on the US dollar. One pressure comes from the Federal Reserve’s declining ability to rig the price of gold as Western gold supplies shrivel and market knowledge of the Fed’s illegal price rigging spreads. The evidence of massive amounts of naked shorts being dumped into the paper gold futures market at times of day when trading is thin is unequivocal. It has become obvious that the price of gold is being rigged in the futures market in order to protect the dollar’s value from QE.

The other pressure arises from the Obama regime’s foolish threats of sanctions on Russia. Other countries are no longer willing to tolerate Washington’s abuse of the world dollar standard. Washington uses the dollar-based international payments system to inflict damage on the economies of countries that resist Washington’s political hegemony.

Russia and China have had enough. As I have reported and as Peter Koenig reports here http://www.informationclearinghouse.info/article38165.htm Russia and China are disconnecting their international trade from the dollar. Henceforth, Russia will conduct its trade, including the sale of oil and natural gas to Europe, in rubles and in the currencies of its BRICS partners.

This means a big drop in the demand for US dollars and a corresponding drop in the dollar’s exchange value.

As John Williams (shadowstats.com) has made clear, the US economy has not recovered from the downturn in 2008 and has weakened further. The vast majority of the US population is hard pressed from the lack of income growth for years. As the US is now an import-dependent economy, a drop in the dollar’s value will raise US prices and push living standards lower.

All evidence points to US economic failure in 2014, and that is the conclusion of John Williams’ April 9 report.

This year could also see the breakup of NATO and even the EU.  Washington’s reckless coup in Ukraine and threat of sanctions against Russia have pushed its NATO puppet states onto dangerous ground. Washington misjudged the reaction in Ukraine to its overthrow of the elected democratic government and imposition of a stooge government. Crimea quickly departed Ukraine and rejoined Russia. Other former Russian territories in Ukraine might soon follow. Protesters in Lugansk, Donetsk, and Kharkov are demanding their own referendums. Protesters have declared the Donetsk People’s Republic and Kharkov People’s Republic. Washington’s stooge government in Kiev has threatened to put the protests down with violence. http://rt.com/news/eastern-ukraine-violence-threats-405/ Washington claims that the protests are organized by Russia, but no one believes Washington, not even its Ukrainian stooges.

Russian news reports have identified US mercenaries among the Kiev force that has been sent to put down the separatists in eastern Ukraine. A member of the right-wing, neo-Nazi Fatherland Party in the Kiev parliament has called for shooting the protesters dead.

Violence against the protesters is likely to bring in the Russian Army and result in the return to Russia of its former territories in Eastern Ukraine that were attached to Ukraine by the Soviet Communist Party.

With Washington out on a limb issuing threats hand over fist, Washington is pushing Europe into two highly undesirable confrontations. Europeans do not want a war with Russia over Washington’s coup in Kiev, and Europeans understand that any real sanctions on Russia, if observed, would do far more damage to Europeans. Within the EU, growing economic inequality among the countries, high unemployment, and stringent economic austerity imposed on poorer members have produced enormous strains. Europeans are in no mood to bear the brunt of a Washington-orchestrated conflict with Russia. While Washington presents Europe with war and sacrifice, Russia and China offer trade and friendship. Washington will do its best to keep European politicians bought-and-paid-for and in line with Washington’s policies, but the downside for Europe of going along with Washington is now much larger.

Across many fronts, Washington is emerging in the world’s eye as duplicitous, untrustworthy, and totally corrupt. A Securities and Exchange Commission prosecuting attorney, James Kidney used the occasion of his retirement to reveal that higher ups had squelched his prosecutions of Goldman Sachs and other “banks too big to fail,” because his SEC bosses were not focused on justice but “on getting high-paying jobs after their government service” by protecting the banks from prosecution for their illegal actions. http://www.counterpunch.org/2014/04/09/65578/

The US Agency for International Development has been caught trying to use social media to overthrow the government of Cuba. http://rt.com/news/cuba-usaid-senate-zunzuneo-241/

This audacious recklessness comes on top of Washington’s overthrow of the Ukrainian government, the NSA spying scandal, Seymour Hersh’s investigative report that the Sarin gas attack in Syria was a false flag event arranged by NATO member Turkey in order to justify a US military attack on Syria, Washington’s forcing down Bolivian President Evo Morales’ presidential plane to be searched, Saddam Hussein’s “weapons of mass destruction,” the misuse of the Libyan no-fly resolution for military attack, and on and on. Essentially, Washington has so badly damaged other countries’ confidence in the judgment and integrity of the US government that the world has lost its belief in US leadership. Washington is reduced to threats and bribes and increasingly presents as a bully.

The self-inflicted hammer blows to Washington’s credibility have taken a toll. The most serious blow of all is the dawning realization everywhere that Washington’s crackpot conspiracy theory of 9/11 is false. Large numbers of independent experts as well as more than one hundred first responders have contradicted every aspect of Washington’s absurd conspiracy theory. No aware person believes that a few Saudi Arabians, who could not fly airplanes, operating without help from any intelligence agency, outwitted the entire National Security State, not only all 16 US intelligence agencies but also all intelligence agencies of NATO and Israel as well.

Nothing worked on 9/11. Airport security failed four times in one hour, more failures in one hour than have occurred during the other 116,232 hours of the 21st century combined. For the first time in history the US Air Force could not get interceptor fighters off the ground and into the sky. For the first time in history Air Traffic Control lost airliners for up to one hour and did not report it. For the first time in history low temperature, short-lived, fires on a few floors caused massive steel structures to weaken and collapse. For the first time in history 3 skyscrapers fell at essentially free fall acceleration without the benefit of controlled demolition removing resistance from below.

Two-thirds of Americans fell for this crackpot story. The left-wing fell for it, because they saw the story as the oppressed striking back at America’s evil empire. The right-wing fell for the story, because they saw it as the demonized Muslims striking out at American goodness. President George W. Bush expressed the right-wing view very well: “They hate us for our freedom and democracy.”

But no one else believed it, least of all the Italians. Italians had been informed some years previously about government false flag events when their President revealed the truth about secret Operation Gladio. Operation Gladio was an operation run by the CIA and Italian intelligence during the second half of the 20th century to set off bombs that would kill European women and children in order to blame communists and, thereby, erode support for European communist parties.

Italians were among the first to make video presentations challenging Washington’s crackpot story of 9/11. The ultimate of this challenge is the 1 hour and 45 minute film, “Zero.” You can watch it here: http://www.youtube.com/watch?v=QU961SGps8g&feature=youtu.be

Zero was produced as a film investigating 9/ll by the Italian company Telemaco. Many prominent people appear in the film along with independent experts. Together, they disprove every assertion made by the US government regarding its explanation of 9/11.

The film was shown to the European parliament.

It is impossible for anyone who watches this film to believe one word of the official explanation of 9/11.

The conclusion is increasingly difficult to avoid that elements of the US government blew up three New York skyscrapers in order to destroy Iraq, Afghanistan, Libya, Somalia, Syria, Iran, and Hezbollah and to launch the US on the neoconservatives agenda of US world hegemony.

China and Russia protested but accepted Libya’s destruction even though it was to their own detriment. But Iran became a red line. Washington was blocked, so Washington decided to cause major problems for Russia in Ukraine in order to distract Russia from Washington’s agenda elsewhere.

China has been uncertain about the trade-offs between its trade surpluses with the US and Washington’s growing encirclement of China with naval and air bases. China has come to the conclusion that China has the same enemy as Russia has–Washington.

One of two things is likely: Either the US dollar will be abandoned and collapse in value, thus ending Washington’s superpower status and Washington’s threat to world peace, or Washington will lead its puppets into military conflict with Russia and China. The outcome of such a war would be far more devastating than the collapse of the US dollar.

About Dr. Paul Craig Roberts
Paul Craig Roberts was (improbably!) Assistant Secretary of the Treasury for Economic Policy under Ronald Reagan, and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. Roberts’ latest books are The Failure of Laissez Faire Capitalism and The Failure of Laissez Faire Capitalism and Economic Dissolution of the West and How America Was Lost.



WHITEWASHING THE UGLY FACE OF CAPITALISM: The media’s false (propaganda) equations and assertions

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capitalism-crashGlossary of Major Distortions { Part One} 
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By Patrice Greanville

Capitalism is preferentially identified by its euphemisms: "Free Enterprise," "market system," "private enterprise." "the American Way," etc. Overt and pervasive partisanship in support of capitalism is not regarded by the American media as an ideological bias negating professional "objectivity" but rather comparable to the serene acceptance of natural laws. 


1 Capitalism = human nature

This propaganda equation is one of the oldest and most effective ideological weapons utilized in defense of capitalism. It pays off handsomely in a number of important ways. First, if capitalism is congruent with “human nature,” then the capitalist system must be the most “natural” and “logical” form of social organization, as people will have a built-in tendency to observe its basic rules. Second, “human nature,” as defined in bourgeois terms (which the press of course follows) is characterized by two significant traits: immutability and unalterable egoism.

The first “fact” automatically discourages most efforts at seriously reforming, let alone revolutionizing, society. Why should anyone bother if in the end the stubborn intractability of human nature will render all schemes for change and improvement of social conditions worthless and utopian? It’s evident that when sufficient numbers of people are made to believe that an eternal, immutable and invincible “human nature” will time and again scuttle the best-laid plans and the costliest sacrifices for change, then most threats to the status quo will be defanged at the outset.

The second “fact,” addressing the supposed individualistic nature of people, provides a convenient justification for the harsh, dog-eat-dog conditions that prevail under the so-called free-enterprise system. In this vision, all human motivation is supposed to flow from the desire for pecuniary gain and self-aggrandisement. Individuals are perceived uni-dimensionally as simple atoms of unrelenting hedonism, constantly pursuing the calculus of profit and loss, pain and pleasure, as they irrepressibly “maximize” their options to fulfill the dictates of hopelessly greedy natures. This is the fabled “homo economicus” of free market literature; the heroic “rugged individualist” so dear to conservatives, and supposedly the creature on which all human progress and wealth depend. But why do the media–and especially the wilier corporate apologists– embrace this tack with so much fervor? As suggested above, the very possibility of changing things is a highly contested ideological area. Radicals argue that society can and should be drastically changed. Conservatives (and the media, which incorporates the mildly reformist liberal viewpoint) contend that nothing basic can or should be changed because our behavior is rooted in an unchanging human nature true for all epochs, systems, and states of human evolution, and, besides, the system is quite sound as it is. History, however, when properly read, is not very kind to conservative social science. As economists E.K. Hunt and Howard Sherman have pointed out, “human nature” seems quite adept at changing to reflect each new set of prevailing social circumstances.

Thus, “it’s no coincidence that the dominant view or ideology under slavery supports slavery; that under serfdom [it] supports serfdom; and that under capitalism [it] supports capitalism. (…) Since our ideology is determined by our social environment, radical economists contend that a change in our socioeconomic structure will eventually change the dominant ideology. Before the Civil War most Southerners (including their social scientists and religious leaders) believed firmly that slavery, an essentially pre-capitalist, agricultural system, was natural and good; but after 100 years of dominance by capitalist socioeconomic institutions, most Southerners (including their social scientists and religious ministers) now declare that capitalism is “natural and good”. So the dominant ideas of any epoch are not determined by “human nature” but by socioeconomic relations and can be changed by changes in these underlying relationships. There is thus hope for a completely new and better society with new and better views by most people.” (F.K. Hunt and Howard J. Sherman, Economics, Harper & Row, 1978, p. xxviii.)

Further, if “human nature” is inherently greedy, competitive and egoist, how do we explain altruism, sharing, selflessness and social cooperation, which can be readily observed to this day in many human institutions and societies throughout the world? It should be borne in mind that class-divided societies and private property made their appearance barely 10,000 years ago, roughly congruent with the rise of agriculture, food surpluses, sedentarism and animal-domestication, while the bulk of our time on earth as a species has been spent under tribal or primitive communitarianism which stressed familial bonds and a sharing of the commonwealth.Question for our pro-capitalist theoreticians: Did native Americans have a human nature?

2 Capitalism = Americanness, loyalty to the United States, “the American Way of Life,” etc.

This is the second major fraudulent equation in the conservative arsenal, and one that, as its predecessor, has been deliberately injected into the American political consciousness by the system’s mind managers. Noam Chomsky, Michael Parenti, among other leading political scientists, have amply documented that such notions do not materialize out of thin air, that they are deliberately manufactured.

Great political benefits can be reaped from this sleazy piece of political legerdemain. For by successfully equating loyalty to capitalism with loyalty to the motherland, the ruling orders can more easily whip up support and legitimacy for policies which chiefly safeguard their interests.The ploy has been particularly effective in the area of foreign policy (see below) where the global interests of American business and the native plutocracy have been sold to the public as those of the nation. This has often served to silence and isolate critics, who have been thus conveniently smeared with the brush of disloyalty, suspicion or even treason. In extreme cases, homespun dissidents have been carted away under charges of “sedition,” “intent to subvert the political system of the United States,” and similarly dubious statutes. There is little doubt that the American ruling class has carried the art of mass deception to truly unprecedented heights. No other western nation would have the audacity of requiring loyalty tocapitalism–however camouflaged–as a prerequisite for good citizenship. Only in a nation where political illiteracy is high, and kept that way artificially by the powers that be, can such a fraud be propagated without too much challenge. Indeed, why should a historically transientsystem such as capitalism be equated with the more enduring essence of the nation, itself an extraordinarily elusive concept?

Questions for capitalism’s apologists: Will Americans be less “American” it they choose for themselves another social system? For that matter, were the Russians certifiably less ”Russian” after their October Revolution? Did the French revolution deny the French some of their precious “Frenchiness”? Are pro-Castro Cubans demonstrably “less” Cuban than those living in exile?

 3  “Capitalism and economic freedom are inseparable from political freedom and democracy, indeed their historical guarantors.”

This claim, so readily bandied about by the media and capitalism’s apologists, can also be shown to be a sham. First, as the tragic situation in the Third World illustrates, capitalism simply thrives in many lands where democracy and the most elementary human and labor rights have been ruthlessly stamped out. In fact, in country after country where human rights have been brutally liquidated private investment is on the rise, and so is the support of’ the American government. The murderous repression of labor leaders, peasants, students, priests and anyone foolhardy enough to speak for the disenfranchised appears to be necessary to “improve the investment climate,” as it is clinically put by our diplomats, journalists and peripatetic businessmen. What is the reality admitted even in the American media? On December 1979, Juan de Onis, the New York Times correspondent in Buenos Aires filed the following report under this headline:

“ARGENTINE POLICIES PLEASE U.S. BUSINESS. Regime, Under fire for Repression, Is Acclaimed by Chamber of Commerce for Restoring Law and Order.”

The piece, a rare occurrence in the New York Times, goes on to explain that, “(A)s in Iran under the Shah, American business generally supports the authoritarian military regime in Argentina, which has violently repressed leftists and welcomed foreign investors.” Glossing over the thorny question of why Argentina’s conditions give rise to civilian sectors desperate enough to back up armed insurrection against the Army, a nearly suicidal choice in almost any country, de Onis proceeds to inform the reader that, “David Rockefeller, the banker, visited Argentina recently to give his support to the program of the Minister of the Economy, Jose Alfredo Martinez de Hoz. In the closing paragraphs we find that “United States investors are not deterred by the controversv over human rights. The Chamber of Commerce, led by Arthur Perry, a mining promoter, and Stanley Brons, a lawyer specializing in investment law, has conducted a campaign designed to emphasize achievements in law and order by the military regime, which crushed an armed subversive movement of left-wing Peronists and Marxists. In the Chamber’s view, publicity given to thousands of cases of people who disappeared after being arrested or kidnapped by security forces is part of an international campaign to weaken a Government that is doing what they believe is best for Argentina.”

We have used italics to underscore the totally unsympathetic and incompassionate manner in which de Onis describes the military’s victims. Is it an accident that he touches several bases likely to elicit a negative reaction in the thoroughly conditioned American reader? “Subversive,” “left-wing,” “Marxist,” “armed insurrection,” these are not exactly endearing terms in the American lexicon, despite the fact that every fourth of July the American nation loudly celebrates its own “armed insurrection.” When reinforced by a total lack of historical context, as it happens in this piece, the effect can only be to lead the reader to unwarranted assumptions. Here, the probable thought is: “They (the guerrillas) just got what they deserved.” This doesn’t hurt the image of the Argentinian junta, but it is a complete falsification and oversimplification of the hard and complex Argentinian struggle.

But what happened to the vaunted “inseparability” of economic freedom and political freedom? The fact is it never existed. “Economic freedom” has been sold in the U.S. as “inseparable from” and “indispensable to” political freedom and democracy because in that manner big business can better protect itself from the popular opinion. This is a high-handed lie worthy of Goebbels. “Economic freedom” is merely a felicitous euphemism of modern coinage for the market freedom of entrepreneurs, speculators and big property owners to do as they please, while the state piously withdraws to the minimalist function of’ “maintaining order, protecting private property, and enforcing contracts,” which is quite fine as far its the “haves” are concerned.

“Economic freedom ” and “political freedom”–at least in the historical epoch of capitalism–are neither inseparable nor indispensable to each other. Indeed, left to their own devices, they tend to move in profoundly antithetical directions. Real political and economic democracy represents a threat to concentrated economic and political power; the interests of the average working citizen simply do not jibe with those of the average oligarch. No amount of’ propaganda can deny that basic truth.

 4  “Capitalism is the most efficient, rational, and productive system of economic organization.”

The immense superiority of the free market over socialist planning is simply taken for granted by the American media. Socialist countries are routinely depicted as economically backward, problem-ridden, and filled with dour-faced citizens eager to defect to the marvelous West. Images of consumer penury are frequently trotted out, while the corresponding historical contexts, which go a long way to explain these scarcities, are carefully expunged. Who hasn’t seen photos of barren socialist stores, their empty shelves an eloquent testimony to that system’s putative incapacity to “deliver the goods”‘?

Comparisons between capitalism and socialism are by definition a complex and slippery matter, informed to say the least, by divergent values. It is therefore not surprising to find that the topic presents rich opportunities for propagandistic manipulation. The following parameters require attention. For example, the “traditional” failure of Soviet agriculture and Russia’s desire for western technology serve here as prima facie proof of socialism’s unreliable and disappointing performance. Yet several factors are routinely left out or insufficiently noted. Take geography, for instance. Russia is three times the size of the continental U.S., but its topsoil is of much inferior quality, and the arable land scarcely one-third the size of America’s, a situation compounded by far less mechanization than in the U.S., the result of a far less mature industrial base, and frequent dislocations caused by war and isolation.

These circumstances are apparently not worthy of mention when shouting about the “failure of communist agriculture.” (What about the horrendous failure of agriculture in the underdeveloped capitalist countries?) Then there are grave omissions concerning history. As the capitalist press burrows deep to unearth every possible problem–real or imagined–afflicting the new nations, they systematically fail to mention the incredible burden of poverty and backwardness (“underdevelopment”) which the new regimes inherited from the deposed old order–an unholy mixture of superexploitative capitalism, feudalism and colonialism supported to the bitter end by American power.

Further, it is rarely mentioned that the very real hostility of the encircling feudal-capitalist powers has often meant tremendous internal dislocations in the countries attempting to construct socialism, even mildly progressive structures (Cf. Guatemala, 1954-5; Chile, 1973, El Salvador in the 1970s/80s, etc.). Russia herself provides the classical example. By mid-1918, less than a year after the seizure of power by the revolutionists, it was evident that an alliance between the major western powers and the native whiteguard counter-revolutionaries was seeking ways to overthrow the new regime.

Eventually, expeditionary forces from Great Britain, France, Japan, the U.S., and later Poland, made their way to Russian shores, and without even bothering to declare war, proceeded to intervene in that country’s civil war. American troops stayed on in Vladivostok until 1923, and the U. S. government refused diplomatic recognition until 1933, almost a decade after the rest of the other western powers had come to terms with the new reality. Cuba and Nicaragua provide more recent examples of all-out capitalist hostility and strategic economic and political warfare. The former has been the target of well-documented maneuvers to strangle its economy including a still-standing blockade; overt attempts at overthrow through military intervention and constant harassment by CIA-financed counter-revolutionary bands in and outside the country.

This policy against Cuba–the product not only of American inveterate anti-communist reflexes, but of allowing US foreign policy to be hijacked by a Frankenstein of their own creation, the rabidly reactionary Cuban exile lobby, has resulted in extraordinary dislocations in the Cuban economy, including a huge amount of money and manpower diverted to defense, serious problems in the healthy development of critical institutions, and a rather problematic dependence on the Soviet Union for sheer survival. For her part, Sandinista Nicaragua is confronted with similarly grave dislocations as the U.S. and its corrupt allies in the region openly threaten “destabilization,” while waging internal sabotage and even open war to keep her and the rest of Central America in the imperial fold. As usual, Nicaragua’s example might spread. It should be noted that capitalism itself never had to confront comparable enemies during its gradual development. First, because in its infancy technological capabilities did not permit rapid and devastating interventions by the feudal powers. Second, because the values of Capitalism were not, after all, so dramatically different from the ancien regime’s, and hence did not require the mammoth social and personal transformations necessitated by the socialist revolutions.

Feudalism and capitalism have regarded private property and its accompanying gross class and economic inequalities as ”normal” and just, even though the justifications and the rhetoric differed at points. Both held surprisingly similar visions of human nature, philosophy, the march of history and other subjects. That is why–among other things–bourgeois revolutions failed to enfranchise all citizens, failed to liquidate the social roots of injustice. Moreover, capitalism took several centuries to reach the stage of institutional maturity where distinctly progressive fruits could be observed, accompanied by a plethora of social ills and already evident tendency to gross exploitation, all of this lucidly chronicled by writers like Dickens and social reformers of the day.

The capitalist record is still quite contradictory in many regions of the world, if not uniformly bad for the majority, where the economy is continually buffeted by recessions, high inflation, endemic corruption and high unemployment. Not to mention horrendous inequality.

In fact, the U.S. itself, the citadel of world capitalism, as alert readers will promptly recognize, is also a land of pervasive crime and corruption; of huge and growing inequalities in economic and political power, (where poverty had to be “rediscovered,” however grudgingly, in the 1960s), and where tens of millions lack essential medical services, and where, on any given day, more than 20% of the population spend their lifetimes struggling against under-employment and complete unemployment, not to mention job and social insecurity in older age.

Of course, these flaws, having been long ago imputed to the “inevitable” order of things do not provoke the kind of furor reserved for socialist construction. In the midst of all the chaos and complexities involved in a thorough overhauling of social institutions, constantly besieged by ideological (and paid) enemies within and without, these hitherto backward countries are supposed to produce overnight perfect societies, with the kinds of economic goods and political graces that would satisfy the most exquisite sensibilities of critics in the capitalist metropolises. The media are thus happy to compare the market system performance with the harsh conditions of the past, or with that of half-asphyxiated socialist models–both of which, as in a game of crooked crapshoot, guarantee a flattering outcome. But what they will not do is to measure the US economy, for example, against its own potential under a much more egalitarian distribution of socioeconomic power.

Capitalism’s actual performance in the Third World.

BUT, even if we assume for a moment that all is well in the industrialized capitalist core, a statement already amply negated by the social convulsions seen in the recent past, how do we explain the fact that the so-called Third World–the capitalist “periphery”–remains perversely bogged down in massive poverty, despair and political repression? If democracy is thin and largely theoretical in the capitalist metropolis, it is downright nonexistent in the majority of underdeveloped capitalist nations. Are they not capitalist enough? In reality, a reality the media carefully avoid or deny, this sorry state of affairs flows directly from capitalism’s inherent nature as a profoundly inequitable, class-divided system in which most power and wealth are hoarded at the top.

Inevitably, the same class division that afflicts the capitalist nation pervades the society of capitalist nations. The result is two sets of nations: the rich and the poor, with the latter greatly impeded in their development by lack of technology, actual sovereignty,  and enmeshed in a political, cultural, and economic dependency or “colonization,” now assured by a “neocolonial” relationship that perpetuates unfair terms of trade and power relations between the two spheres. As the American media look away from this embarrassing picture, two stratagems are used to cushion whatever bad p.r. might manage to bubble up to the surface.

First–and simplest–is to avert the eyes from anything genuinely positive and encouraging taking place in the socialist world. This is the old technique of omission. Thus few Americans are aware that Cuba–despite unrelenting pressure from the world’s pre-eminent superpower–has managed to stamp out widespread illiteracy and malnutrition; childhood and adult prostitution (although these days, due to prolonged scarcities induced by the blockade, some women choose to prostitute themselves to complement their normal income. –eds), high infant mortality (it is ahead of the U.S.), rampant political corruption and repression, and dramatically reduced all forms of crime–from petty hooliganism and thievery to the organized variety, while offering its citizens guaranteed employment, free medical care and education at all levels, and the best income and wealth distribution in the hemisphere, certified by the OAS and UNO, not exactly socialists shills.

These impressive facts are simply not sufficiently “newsworthy” to most American editors. The second trick in the media book is to concentrate attention on GNP growth and the adoption of capitalist models of development (about which more later), trotting out, from time to time, the “economic miracles” that have supposedly taken place in Brazil, South Korea, Singapore, Taiwan, Hong Kong, and other capitalist showcases. Leaving aside for a moment the crucial fact that these “success stories” frequently have a pretty shabby underside of political repression and super exploitation, or were permitted or stimulated by the hegemon for purely strategic reasons, it should be noted that the bottom line is a notoriously inadequate indicator of economic conditions for the majority.

GNP figures, as normally peddled by American journalists, rarely shed light on a crucial aspect of economic performance: the manner in which the national income and wealth are distributed among different sectors of the population, and whether or not the goods and services produced are allocated to internal consumption or export.

As it turns out, while Brazil, for example, has indeed expanded its GNP, it has also concentrated a greater portion of the national wealth among a tiny minority at the top and most of its output is earmarked for exportation. The result: a larger GNP coupled with greater unemployment and misery among the masses, a fact amply documented by a recent UNO report on the Southern Cone countries (Chile, Brazil, Argentina, Uruguay), and a variety of reports published by none other than the Catholic Church’s office of social affairs.

4B. The best possible product?

While the system’s propagandists argue that the market system can and will give the consumer as good a product as the state of the art will allow, an essential contradiction of capitalist production is niftily overlooked. The consumers want, by and large, the best, longer-lasting product their money can buy. For instance, they may want to see razor blades capable of lasting 1,000 shaves or more; or cars which do not begin to self-destruct before they are fully paid off. The catch-22 is that the capitalist producer has something else in mind. The capitalist is in business not to meet society’s needs and maximize the “end use” of his products but simply to make as much money as possible. As the CEO of US Steel once proclaimed to an approving audience of shareholders, “We’re not in the business of making steel; we’re in the business of making profits.” (Since these frank words were spoken, US Steel has gone on to morph itself into an entirely different kind of company, with steel now only a relatively minor part of the portfolio of assets, all under the name of a new conglomerate rubric, the USX corporation. “In October 2001, USX Corporation shareholders voted to adopt a plan of reorganization.  The plan resulted in the tax-free spin-off of the steel and steel-related businesses of USX into a freestanding, publicly traded company known as United States Steel Corporation — the name of the corporation when it was established a century earlier. The remaining energy businesses of USX became Marathon Oil Corporation.”--eds.)

Thus, in his pursuit of maximum profits, the businessman will promote, as much as circumstances will permit (i. e., consumer knowledge, brand loyalty, competition, government oversight) a product that will insure the highest possible frequency of purchase. The two sides have therefore incompatible agendas. In a capitalist economy, however, the final decision of what to produce, and how, is left to the commercial corporation. Hence, under monopoly conditions, the “better,” “longer-lasting” features of products will be more often than not quietly scuttled. Indeed, as GM itself helped pioneer, at times it is necessary to inject “built-in” obsolescence in order to energize demand. Or just ignore and cover up products flaws that may cause death and mayhem.

It follows that if the capitalists, as a class, are not too sanguine about the introduction of genuinely better, longer-lasting products, they will not be too eager either to finance or introduce technologies that make these very products possible. (The world’s costly addiction to petroleum is a prominent example of this, but far from the only one. Humankind could have moved to pocket-friendly, environment-friendly non-petroleum sources of energy a long time ago but the industry’s clout has blocked any real moves in that direction and a largely prostituted political class, worldwide, has seen to it to preserve what amounts today to a deliberate ecocide.)

The upshot is a very erratic rate of technological innovation and one which is once again left entirely to the whims of profit maximization instead of social and ecological benefit.

4C. Automation vs. jobs

This is a hugely important topic, and one that holds major clues to the supposed “riddle” of job creation and destruction, in other words, the actual level of employment we find in any society.

Despite the social and historical importance of this topic, the formidable American media continue to cover it for the most part inadequately. The typical treatment is an article that while dwelling on the various aspects that surround the introduction of a new, labor-saving technology, including the resistance and suspicion so often manifested by workers, fails miserably to make the essential connection: that automation need only cause unemployment and social strife under capitalism.

We should recall that machines were invented by humanity for three essential reasons: to liberate mankind from unnecessary, back-breaking toil; to increase social leisure; and to increase the quality and quantity of production (thus permitting improved social consumption). As a rule, however, the introduction of labor-saving devices under capitalism has curious, it not utterly perverse, repercussions.

Consider a new machine destined for shoe-manufacturing. Working with the old technology and a workforce of 100, Super-Capitalist Shoes, Inc. turns out 10,000 pairs of shoes per month. Now enter a new generation of machines. The firm in our example decides to purchase two new totally automatic machines that will increase production to 100,000 pairs, a tenfold increase in output, but will utilize only 60 workers, thereby laying off 40% of its labor force. Here we have a typical capitalist “contradiction.” On the one hand we have a much larger output and higher incomes for the very few, the social pyramid apex, chiefly connected with the private ownership and administration of the business enterprise (and the machines). On the other we have unemployment and lower consumption for the many, chiefly the workers’ side. This is the result of social relations not some inexorable economic law. Such social relations, enforced by the state and its coercive apparatus, create therefore an incurable process of inequality and poverty for the majority, issuing from the very core of the sociopolitical engine.

Naturally, if the fruits of higher productivity were distributed more fairly, ordinary citizens would have a great deal more of leisure time to develop their other personal dimensions. Under capitalist relations, with the capitalists in the saddle, there is no real leisure time for the majority, unless we are prepared to call unemployment a form of holiday.

For as automation spreads through the economy, more and more workers will be knocked out of the job market permanently or semi-permanently, depressing consumption precisely as more goods are being turned out! Thus, under capitalism, a fast rate of technological change and aggressive investment in labor-saving machines may actually help trigger recessions. (Question for capitalist purists: What would the corporate overseers do without liberal/socialist ideas such as unemployment insurance, federal retraining programs, income maintenance programs and other “built-in economic stabilizers?”) And by the way, keep this little fact in mind: No amount of retraining will guarantee a worker a job if the rate of job creation starts falling too far behind population growth.

4D. Whose fruit? Capitalism’s or modern industrialism’s?

The rise of the capitalist mode of production is intimately linked to the spread of the industrial revolution and the modern methods of socialized production, but the time may have come to try to separate the fruits of each. Capitalism’s defenders are understandably eager to credit capitalism as the major, it not exclusive reason for today’s affluence, such as it exists. Accordingly they have fetishistically invested private property with magic qualities it doesn’t possess. Their position may be boiled down to the notion that society’s optimal use of resources can only be secured through the subjection of science and industrialism to the regime of private property. In their eyes, entrepreneurial self-seeking is the best engine for invention, exertion, and abundance. While this may be true of some very specific cases, it is hardly true with respect to the modern mega-corporation, typical of mature capitalism, wherein private ownership is retained by a relatively small circle of speculators or absentee owners, frequently several generations removed from the actual day to day management and production of the firm. In fact, it is obvious that a modern factory or a plot of land can be put to work to maximum benefit under either private or collective ownership, as long as the proper inputs and techniques are observed. (Including the proper ethical and ecological rules to direct industrialism, whose destructive power is enormous.)

4E. Selling us the rationality and efficiency of “Free Enterprise”

The American media have never given up singing the praises of the market system’s vaunted “efficiency,” its “democratic nature” (due, it is argued, to the rather spurious notion of “consumer sovereignty” or “marketplace balloting”) and, above all, rationality. Despite an economy in which corporate giants such as GM, Ford, U.S. Steel, prominent banks and other Fortune 500 firms routinely post losses totalling billions of dollars (Not too long ago GM and Chrysler necessitated a huge government bailout to avoid insolvency), the carefully-cultivated myth of private enterprise efficiency and superiority over public enterprise dies hard.

Three areas must be de-emphasized to accomplish this feat. First, the eyes must be averted from capitalism’s chronic underemployment, misemployment, and unemployment of human and capital resources (workers, land, machines, etc.) as this represents a total waste to society estimated by even mainstream economists at hundreds of billions of dollars per year, if not trillions, not to mention the unquantifiable suffering inflicted on people who must get by with totally inadequate incomes.

Second, the decision to allow the profit motive to control society’s production choices in quality, quantity and composition of output introduces further waste through the squandering of resources in luxury, frivolous, or “unnecessary” goods; entire categories of “throwaway” products designed ostensibly for consumer convenience (i.e. cheap cameras); or simply questionable production inherent in capitalism, such as, the paper spent every year on socially useless [and environmentally deleterious] advertising campaigns, glossy fashion magazines, catalogs, etc.

Third, there is a whole host of “social inefficiencies” or “externalities” inherent in the operation of a capitalist economy that go beyond the mere pollution of the air, land, and waterways. Capitalism’s selfish ethic and infamous rat race literally pollute people’s lives and decompose the social fabric which ought to hold the community together. Indeed, the colossal crime, mental health, and unemployment problems that plague the U.S. demand substantial social outlays everywhere for their mere control, let alone eradication. (Consider for a moment what the U.S. spends annually on prisons, rehabilitation, psychiatric counselling, courts, law-enforcement and welfare. These social costs, by the way, are counted in the GNP as “positive” expenditures). In fact, with alienation and mental dislocation running exceedingly high, the US easily outstrips all other industrialized nations in the incidence of serial and mass killings. In the international arena, endless wars and meddling in other nations' business compels trillions of dollars in needless and criminal expenditures, all the while the nation's infrastructure and renewal technologies are underfunded or put on hold.

Such inherent sociopolitical deformations cannot be expected to run for long without some opposition. And it is precisely in anticipation of such reaction by the public that the capitalist-dominated state makes preparations to put out the fires well in advance. Sometimes this takes the form of a beefed up police state, as we see now in practically all “Western democracies,” the 9/11 tragedy having given the ruling orders everywhere the ideal pretext to build a massive surveillance and repressive apparatus.  And should not that suffice to control popular disenchantment, or the yearning for real democracy, an even more brutal Frankenstein is already being abetted in many areas of the empire, including the home front, fascism.

The drift toward authoritarianism and plutocratic tyranny cannot be arrested, only slowed down or momentarily interrupted given the essentially undemocratic nature of the system. As I said in another essay (Understanding American Capitalism) living with capitalism is like living with a sociopath in the room, a murderous maniac who bears constant watching.

Lastly we can argue that there is also a very real, not merely metaphorical, waste of life–the average worker-consumer’s life, that is–as a result of deliberately shoddy products, monopolistic prices, and built-in obsolescence, all of which force people to work two, three or more times than necessary for the same standard of living.  This waste and relative overprice, in addition to the already gross underpayment received by ordinary citizens under capitalist social relations, whereby, by design, a disproportionate piece of the pie goes to an ever shrinking minority at the top of the social pyramid.

In the same essay mentioned above (Understanding American Capitalism) I quoted my colleague, Dr Susan Rosenthal,  who summed up the problem of productivity’s theft by the capitalists rather brilliantly:

By 2000, U.S. workers took half the time to produce all the goods and services they produced in 1973. If the benefits of this rise in productivity had been shared, most Americans could be enjoying a four-hour work day, or a six-month work year, or they could be taking off every other year from work with no loss of pay. (See, Globalization: Theirs or Ours?)

The lives and money wasted, the fear and alienation, the sense of powerlessness and constant insecurity that characterize a normal existence for a very large segment of the population (have you ever come across one of those insurance ads reminding you how vulnerable you are to this or that in America, from the shortcomings of Medicare to your funeral expenses?)–these are all hidden, unacknowledged, social taxes that we all pay for the privilege of living under capitalism.


ABOUT THE AUTHOR

First trained as an economist, media critic, animal defender, and social justice activist Patrice Greanville is founding editor of Cyrano’s Journal Today and The Greanville Post.