How America Impoverished the 90%

HELP ENLIGHTEN YOUR FELLOWS. BE SURE TO PASS THIS ON. BREAKING THE EMPIRE'S DISINFORMATION MACHINE IS UP TO YOU.



Godfree Roberts
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How America Impoverished the 90%

Their poverty is a feature, not a bug

 
 
 
 

The doctrine of developmentalism – that countries develop best by educating their people, fostering strong domestic markets and imposing high tariffs on imports – enjoyed a golden age postwar. By 1969, says Naomi Klein, the Southern Cone looked more European than Third World. Workers in new factories formed strong unions that negotiated middle-class salaries and their children went off to study at new public universities. By the Fifties, Argentina had the largest middle class in South America, while Uruguay provided free health care to its 95% literate people.

Ike’s War On Development

Since developmentalism is rooted in equality, justice and independence, the US painted it as the first step towards godless communism, forever tarnishing it in Americans minds. Then, in 1953, President Eisenhower launched the war on development by appointing the Dulles brothers – who had represented the Cuban Sugar Cane Co. and United Fruit Co. – as Secretary of State and CIA Director.

When Iran elected a fervent developmentalist President, Mohammad Mossadegh, Eisenhower and the Dulles set out to destroy him and his country, a project that remains a White House priority.


Despite his good image for having "warned us" about the MIC, Eisenhower like all US presidents was an unapologetic meddling imperialist.


Empty calories

Ike’s anti-development policy was called Capitalist Modernization Theory: [According to this], Western societies are inherently progressive in ways older civilizations can never be, and the wealth they generate is distributed unevenly because some people work harder than others. But the only road to economic evolution and social modernization leads through free trade, individual effort and capitalism, and those who stray from the path will be destroyed.

So thorough was the anti-developmentalist campaign that the US carried its attack to the UN, where it blocked all resolutions recognizing food, shelter and national development as human rights. Learning of this a horrified Harold Pinter wrote,

The crimes of the United States have been systematic, constant, vicious, remorseless, but very few people have actually talked about them. You have to hand it to America. It has exercised a quite clinical manipulation of power worldwide while masquerading as a force for universal good. It’s a brilliant, even witty, highly successful act of hypnosis. "U.S. foreign policy is best defined as follows: kiss my arse or I’ll kick your head in. It is as simple and as crude as that. What is interesting about it is that it’s so incredibly successful. It possesses the structures of disinformation, use of rhetoric, distortion of language, which are very persuasive, but are actually a pack of lies. It is very successful propaganda. They have the money, they have the technology, they have all the means to get away with it, and they do.” – Nobel Prize lecture, 1958.

To keep developmentalism dormant, the US systematically destroyed developing economies and assassinated defiant leaders. To this day, the Joint Chiefs reassure the nation that they are ready to nuke China for having the audacity to develop its economy.

Enter the Dragon

Maurice Meisner,

Starting with an industrial base smaller than that of Belgium's in 1952, the China that for so long was ridiculed as "the sick man of Asia" emerged at the end of the Mao period as one of the six largest industrial producers in the world, comparable to the industrialization of Germany, Japan, and Russia.

  • In Germany the rate of economic growth 1880-1914 was 33% per decade.

  • In Japan from 1874-1929 the rate of increase per decade was 43%.

  • The Soviet Union from 1928-58 achieved a decadal increase of 54%.

  • In Mao’s China from 1952-72 the decadal rate was 64%.

By maintaining Mao’s breakneck pace for seventy years, China has created the largest and most complete (war-fighting) economy on earth – so resilient that, in the face of embargoes and threats, its trade has grown by $1 trillion under the embargoes and the economy by $1.6 trillion this year alone.


 

Washington’s last stand?

China’s development represents a defeat far more consequential than America’s combined losses in Korea, Vietnam, Afghanistan and Ukraine. China not only defied America and developed, but is supplanting it as leader of the world.


Godfree Roberts' SUBSTACK depository is at https://substack.com/@herecomeschina. His bio box can be seen at the bottom of this page. 


Addendum

Even the CIA-redacted Wikipedia accepts, however grudgingly, that China has accomplished  a virtual miracle in a much shorter time than ANY capitalist nation in history thanks to its socialist core. The quote below testifies to this:

[4][5] which still stands in 2022.[6][7][8]

The Chinese definition of extreme poverty is more stringent than that of the World Bank: earning less than $2.30 a day at purchasing power parity (PPP).[9]Growth has fuelled a substantial increase in per-capita income lifting people out of extreme poverty. China's per capita income has increased fivefold between 1990 and 2000, from $200 to $1,000. Between 2000 and 2010, per capita income also rose at the same rate, from $1,000 to $5,000, moving China into the ranks of middle-income countries.

(See Poverty in China, Wikipedia)



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CNN’s CEO Is Making Staff Churn Out Israel Propaganda

Be sure to distribute this article as widely as possible. Pushing back against the Big Lie is really up to you.


Caitlin Johnstone
ROGUE JOURNALIST


 
 
CNN tower antenna


Listen to a reading of this article (reading by Tim Foley):

One of the noblest and most important things a western journalist can do these days is help expose the propagandistic manipulations of the mainstream western press institutions who have duped our civilization into consenting to a profoundly dysfunctional status quo which does not serve the interests of normal human beings. Unfortunately this rarely happens, because western journalists tend to view the mainstream press as allies and potential employers.

This happens to be one such rare occasion, and it happened in one of the last placesyou’d probably have guessed if you follow mass media propaganda with a critical eye. The Guardian has a great new article out titled “CNN staff say network’s pro-Israel slant amounts to ‘journalistic malpractice’” by a guy named Chris McGreal which cites multiple CNN staff members and internal documents to reveal the immense top-down pressure in the network to tilt coverage heavily in favor of Israel.

https://x.com/mediaguardian/status/1754121393359478926?s=20

McGreal writes the following:

“CNN is facing a backlash from its own staff over editorial policies they say have led to a regurgitation of Israeli propaganda and the censoring of Palestinian perspectives in the network’s coverage of the war in Gaza.

“Journalists in CNN newsrooms in the US and overseas say broadcasts have been skewed by management edicts and a story-approval process that has resulted in highly partial coverage of the Hamas massacre on 7 October and Israel’s retaliatory attack on Gaza.

“‘The majority of news since the war began, regardless of how accurate the initial reporting, has been skewed by a systemic and institutional bias within the network toward Israel,’ said one CNN staffer. ‘Ultimately, CNN’s coverage of the Israel-Gaza war amounts to journalistic malpractice.’”

McGreal’s sources say CNN’s wildly biased coverage of Israel’s assault on Gaza is the direct result of edicts from the network’s new CEO Mark Thompson, who assumed his role two days after the October 7 attack. From 2012 to 2020 Thompson was the president and CEO of The New York Times, which is currently experiencing its own internal strife due to the pro-Israel bias of that outlet. 

Before his NYT executive gig Thompson was the director-general of the BBC, where he came under fire multiple times for the pro-Israel bias he imposed on the British state broadcaster. In 2005 he held meetings in Jerusalem with then-Israeli Prime Minister Ariel Sharon with the reported aim to “build bridges with the country’s political class,” immediately after which he removed BBC correspondent Orla Guerin from Jerusalem following accusations of “antisemitism” made against her by the Israeli government. In 2009 he was hotly criticized for choosing not to air the Disasters Emergency Committee appeal for Gaza, and in 2011 he presided over the decision to censor the lyrics “free Palestine” from a performance by rapper Mic Righteous on BBC Radio 1Xtra.

This is the sort of person who gets hired to multiple executive positions in multiple highly influential western media platforms. If you’ve ever wondered why it looks like the western press function in pretty much the same way as the state propaganda services in the autocracies the west proudly sets itself apart from, this is why. The corporate media are owned and controlled by plutocrats who have a vested interest in preserving the status quo power structure upon which their kingdoms are built, and state broadcasters like the BBC have the same interest for the same reason. They decide who the executives of those outlets will be, and those executives make policy and hiring decisions which cause the outlet to function in a way that is indistinguishable from state propaganda.

These are the people who’ve been pulling the wool over the eyes of the mainstream public and manipulating the masses into thinking, speaking, working, consuming, and voting in ways that serve the interests of the ruling power structure. In this way they are able to ensure that revolutionary opposition to that power structure remains a fringe minority position, even as that power structure wages wars, sponsors genocides, destroys the biosphere, and keeps everyone poor, sick, and stupid.

Our world will never see the revolutionary changes it desperately needs until the people begin using the power of their numbers to force those changes to happen, and the people will never start using the power of their numbers to force revolutionary change as long as they are being manipulated by propagandists into accepting the status quo. Our task therefore, as people who love truth and desire a healthy world, is to begin waking the public up to the reality that everything they’ve been told about their society, their government and their world is a lie, and pointing them toward true information about what’s really going on.


That’s how humanity will awaken from its propaganda-induced coma to create a healthy world: one pair of eyelids at a time. This might sound like a slow-going project, but for every newly opened pair of eyes there is one more voice who can help wake up the others, which means exponential growth is possible. This is how we move humanity into the light of truth and begin the shift toward a truth-based society.

And we’ve got an advantage: the empire needs to use human beings to generate its propaganda. That’s what we’re seeing in CNN staff turning against their boss and reporting his malfeasance to another news outlet. As long as the empire depends on ordinary human beings to turn its gears and facilitate its horrific atrocities, there’s always the possibility that the next pair of eyes to open will be someone on the inside.


All my work is free to bootleg and use in any way, shape or form; republish it, translate it, use it on merchandise; whatever you want. My work is entirely reader-supported, so if you enjoyed this piece please consider sharing it around, throwing some money into my tip jar on PatreonPaypal, or Substack, buying an issue of my monthly zine, and following me on FacebookTwitterSoundcloud or YouTube. If you want to read more you can buy my books. The best way to make sure you see the stuff I publish is to subscribe to the mailing list on Substack, which will get you an email notification for everything I publish. For more info on who I am, where I stand, and what I’m trying to do with this platform, click here. All works co-authored with my husband Tim Foley.

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This is a dispatch from our ongoing series by Caitlin Johnstone


Caitlin Johnstone is a brave journalist, political junkie, relentless feminist, champion of the 99 percent. And a powerful counter-propaganda tactician. 
 

 


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China’s Economy: Doing Well or Big Trouble Ahead?

Please make sure these dispatches reach as many readers as possible. Share with kin, friends and workmates and ask them to do likewise.


Jeff J. Brown


EDITOR'S NOTE
F.W. Engdahl, a widely respected geopolitical analyst, recently wrote an essay offering a gloomy view of China's near economic future.  Engdahl was forecasting something like a serious recession or even an economic implosion. Since many progressive people around the globe pin their hopes on China and Russia to build a peaceful, multipolar, and genuinely democratic order, one that would show conclusively the superiority of socialism over predatory neoliberalism, Engdahl's piece caused a great deal of confusion and consternation. Fortunately, our senior editor, Jeff J. Brown (who also happens to be the editor-in-chief of the China Rising blog, and also founder of the new Seek Truth From Fact Foundation) is a highly qualified expert on Chinese and Asian questions in general, and has written several books on the subject, also saw the Engdahl forecast and prepared a comment. Both views can be found below. It should be noted that alarms about the "real estate bubble collapse" have been around for a while. The US news program 60 Minutes (CBS) produced a segment, highly critical, of course, 10 years ago. (See appendix) While the debate may continue, we hope this page will help to clarify some of the urgent concerns expressed by some of our readers and associates. Meantime, our special thanks to our colleague Regis Tremblay, himself a veteran anti-imperialist/peace activist, for bringing this topic to our attention. 
—PG

Why China Can’t Pull the World Out of a New Great Depression 
By William Engdahl  |  First run on  16 May, 2023

Chinese economy Real estate

Empty mall. Maybe the customers will come, maybe not, but the use value is always there.


Over the past two decades since China was admitted into the WTO, its national industrial base has made unprecedented strides to emerge as the world’s leading economic producer in many major areas. The academic debates over whether China’s GDP is larger than that of the USA are misplaced. GDP is largely worthless as a measure of a real economy. When measured in real physical economic production, China has left the USA and everyone else in the dust. Therefore, the future course of industrial production in China is vital to the future of the world economy. Globalization of the world economy made it so.

Steel production is still the single best indicator of a growing real economy. In 2021, China produced more that twelve times the tonnage steel as the USA, over one billion tons. The USA, once world leader, managed a piddly 86 million tons. In tons of coal, China produces some 50% of world total coal. She controls 70% of world rare earth mining and over 90% of its processing, thanks to bizarre US policy actions going back several decades. China today is far the world’s largest motor vehicle producer, almost three times the size of the US at 27 million units annually, one third of world total in 2022. China is by far the largest producer of the essential cement for construction, and is the world’s leading aluminum producer.  At 40 million tons in 2022, this compares to not even one million tons in the USA. It is also the world’s largest copper consumer. The list goes on.

This is merely to suggest how essential the economy of China has been to world economic growth over the past two decades. A mere four decades ago China was insignificant in world real economic terms. So, if China goes into deep economic contraction, the effect this time will be global. And this is just what is now underway. Important to note, the contraction began well before the severe three-years of China’s zero covid lockdown. Simply put, China since the so-called Great Financial Crisis of 2008 managed to create a financial bubble the size of which the world has never before experienced. That bubble began to deflate, beginning in real estate, around 2019. The scale is systemic and is only beginning.

Colossal Deleveraging and Hidden Debt

A huge problem with China’s economic model over the past two decades has been the fact that it has been a debt-based finance model massively concentrated on real estate speculation beyond what the economy can digest. 

Fully 25 to 30% of the total Chinese GDP is from real estate investment in homes, apartments, offices.  That’s significant. The problem is that real estate, especially apartments in China, for more than two decades, appeared to be a guaranteed money maker for owners as well as builders and banks and above all, local government officials. Prices rose annually in the double digits, sometimes by 20%. Millions of middle-class Chinese bought not just one, but two or more apartments, using the second as investment for future retirement. China’s land is owned by the Communist Party, at the local level. It is leased long-term to construction firms who then borrow to build.

Here it gets murky. For CP local government officials, revenue from local real estate land leasing and their infrastructure projects is their major revenue source. Until now municipal property taxes are forbidden despite a huge pressure from local officials. 

In the months of 2018 and 2019 China real estate prices peaked. Since then, they have been in a prolonged decline. China has a unique and very abuse-prone real estate model. Typically, a buyer must pre-pay the full purchase price when a developer has merely begun the construction. “Buy today as the price will be even more tomorrow” was the mantra. He takes a mortgage, usually from local banks, to do that. If the builder does not complete on time, the buyer must still pay their mortgage. Even if the developer goes bankrupt as is now happening, leaving abandoned unfinished housing behind. No other country uses that model. Typically, in Western countries a small deposit on a home to reserve until completion is enough. The mortgage comes when the property is finished. Not in China.

So long as China home prices were constantly rising, it seemingly worked and the home market expanded. When that price inflation stopped, for a variety of reasons, and exacerbated by the ultra-severe covid lockdowns, what was then a colossal real estate bubble began to implode. According to economist Robert Pettis at Beijing University, “Since the beginning of the property crisis in September and October 2021, property prices have declined in more than two-thirds of China’s seventy largest cities (and probably all of the smaller ones), while, more importantly, sales of new apartments this year (2022) have collapsed.” [1][i]

The major turn took place in 2021 with the default of China Evergrande Group on its dollar bonds. It was then the world’s most indebted real estate conglomerate with debts of well over $300 billion. In 2018 Evergrande was deemed, “the most valuable real estate group in the world,” according to Wikipedia. That was on paper. By time of default, it also owned theme parks, an EV auto company, resorts and enough land to house 10 million people. Until Beijing refused to bailout Evergrande, in a belated bid to cool the bubble, Chinese lenders had made loans based on the assumption that large borrowers would be bailed out—Too Big To Fail. Beijing learned all the wrong lessons from US banks after Lehman Bros.

It came out that Evergrande had created a colossal Ponzi fraud over the years. They were not unique. Following a speculative property boom after 2010, poorly-regulated local governments across China turned increasingly to real estate to boost income and fulfill the Beijing GDP growth targets, a de facto monetary version of Soviet central planning. Inflating local real estate values was a way of meeting local GDP targets. Local officials were given their share of annual GDP contribution to be met. Real estate became the ideal vehicle to meet GDP targets and generate local revenues. As long as prices were rising, banks and increasingly unregulated local “shadow banks” joined in the “win-win” bonanza.  According to the South China Morning Post, by 2020 and the start of covid severe lockdowns, land sales and real estate taxes’ contribution to local government fiscal revenue reached a peak of 37.6 per cent. [1][ii] 

The Evergrande partial default set off a panic in China real estate that officials desperately, and unsuccessfully, have tried to control. It was merely the first major casualty in what is a systemic meltdown. Beijing authorities imposed sharp limits on real estate lending in a vain attempt to contain the implosion, the so-called Three Red Lines. That made the implosion of the property bubble worse. In 2022 China new home sales plunged 22% over 2021. As of February 2023, China home prices had fallen for 16 straight months. Sales by the country’s top 100 developers last year were only 60% of 2021 levels. Land sales, which typically account for more than 40% of local government revenue, have collapsed. [1][iii]

Empty Houses and unemployment rising

Until the bubble began to burst in 2022 with the Evergrande default, Chinese real estate prices had risen several times higher, relative to household income, than in the USA. More alarming, two decades of rampant price inflation had created literal ghost cities and millions of empty apartments. As of 2021 an estimated 65 million apartments in China were empty, enough to house the French nation. [1][iv] This was a result of two decades or more of municipalities and developers building beyond actual demand, as citizens bought for investment, not living. One estimate is that between one-fifth and one-quarter of the total China housing stock, especially in more desirable cities, was owned by speculative buyers who had no intention of living in them or renting them out. In Chinese culture, a used apartment is considered unattractive.[1][v] With falling prices, these homes become unpayable.

The unprecedented 3-year covid lockdowns that ended abruptly last December did not help matters. Thousands of foreign manufacturers including Apple, Foxconn, Samsung and Sony, have begun to leave China for other locations in Asia or even Mexico, fueling a growing unemployment crisis which feeds the housing crisis in a self-feeding cycle. 

As a result of this slow-motion implosion across China, for the first time since the great expansion unemployment is becoming very serious. This March, youth unemployment officially was over 20%. Millions of recent university graduates are unable to find work and Beijing has begun to send them to work in the rural countryside, reminiscent of the Mao era. This bodes ill for future home sales. A contracting bubble has a vicious dynamic.

Until about the time of the 2008 Beijing Olympics, real estate investment was largely productive. It filled a huge deficit in quality housing as a new middle class grew more affluent. After about 2010 that began to shift to bubble status as millions of middle-class and rich Chinese began to buy second and even third homes for pure speculation as prices were rising in double digits. The degree of central supervision of local government finances was loose. 

Over recent years, to avoid central clampdown by Beijing authorities fearful of a new debt bubble imploding, local governments, often with hidden collusion from the giant state banks, created a non-bank economy, “shadow banks,” all off-balance sheet. As one result, despite actions by Beijing regulators to control the property meltdown and prevent contagion, total debt, public and private, in China by February 2023 according to Bloomberg reached an alarming 280% of GDP. [1][vi]

Commodity.com reports total state debt of China in 2023 is more than $9.4 trillion. But that excluded local government financing vehicles (LGFVs). Chinese local governments rely on off-balance sheet LGFVs to raise funds for local public construction—housing, high-speed rails, ports, airports. The debts of all these LGFVs are estimated to be roughly $27 trillion more. The official figure for total state debt also excluded debt of state banks and state companies, which is also clearly considerable, but unpublished. That total debt is also without the unknown size of local shadow banks which China’s National Institute of Finance and Development in 2018 estimated at some $6 trillion more. The result of all these omissions is a headline figure meant to reassure Western financial markets that China has manageable public and private debt. It doesn’t. All told, very roughly we can calculate a mammoth debt accumulation of well more than $42 trillion, a staggering sum for an economy which only three decades ago was at a level of an underdeveloped economy.  [1][vii] 

A major vehicle used to finance local budgets is unguaranteed and largely unregulated municipal investment bonds. Unlike traditional municipal debt in western countries, the Chinese local LGFVs are not able to use tax revenues to fund their bond interest or principal payments. So, local governments would tap into a growing housing market by leasing their long-term land to developers to fund their bond payments.  This created a system where a sustained fall in housing construction, sales and prices now creates a systemic threat. This is now underway across China. In just two decades China has created the world’s second largest corporate debt market behind the USA, and far the most of that is in unregulated municipal bond debt. 

As a result of this unique mixing of local governmental fiscal policies with local housing markets, a substantial drop in housing or land prices has greatly increased the risk level of local government default on its debts. In July 2022 Zunyi City in Guizhou defaulted on a major bond, leading to a collapse of the entire unregulated local bond market, as local bond issuance collapsed by 85% after that. The bonds were a way to refinance local debt and that channel now is all but closed, despite Beijing liquidity injections early 2023. Investors were mostly local ordinary Chinese seeking to earn on savings. This past April officials of Guiyang, also in Guizhou, told Beijing it was unable to finance its debts accumulated over a decade in construction projects including housing. [1][viii]  This opens the next phase of debt implosion. Several China municipalities reportedly have been slashing wages, cutting transportation services and reducing fuel subsidies in a desperate bid to avoid default.

National Security redefined

Transparency of financial data has always been a problem in China. Thirty years ago the country had no developed financial markets. So long as the economy was expanding however, it was not a priority. Now it is, but too late. 

A signal of how severe the situation is becoming, the Beijing authorities have begun to limit release of local and corporate financial data to foreign firms, calling it a “national security” issue. 

This May, Dalian Wanda Group, another major Chinese real estate conglomerate with investments in US cinema chains, Australian real estate and beyond, revealed talks with its major bankers to restructure huge debts amid a liquidity crisis. The UK Financial Times on May 9 reported that hopes of a post-covid China recovery are vanishing: “Chinese iron ore prices dropped to their lowest levels in five months, as weak demand adds to evidence that the country’s economic rebound from tough coronavirus lockdowns may be faltering… the optimism and activity that followed the end of lockdown have waned, leading to a ‘collapse’ in the steel market.” 

This all means the prospect of the Chinese economy being a growth locomotive to lift the rest of the world from looming depression is virtually nil at this point. The massive Belt and Road Initiative is mired in hundreds of billions of dollars in loans to countries unable to service the debt, as world interest rates rise and growth stalls. Attempts to boost domestic China growth by relying on a consumer boom are doomed presently for obvious reasons noted, as is the call by Xi Jinping to make 5G, AI and such technologies the basis of a new boom, as US sanctions greatly hamper China IT advances.


Endnotes:

[i] Michael Pettis, What’s in Store for China’s Mortgage Market?, August 12, 2022,

https://carnegieendowment.org/chinafinancialmarkets/87664

[ii] Luna Sun, China cracks down on ‘characteristic towns’ that misused land, real estate while racking up massive debt, 6 November, 2021, https://www.scmp.com/economy/china-economy/article/3155055/china-cracks-down-characteristic-towns-misused-land-real

[1][iii] Laura He, China s property crash is prompting banks to offer mortgages to 70 year olds, February 20, 2023     https://edition.cnn.com/2023/02/17/economy/china-mortgage-age-95-property-market-intl-hnk/index.html

[1][iv] Lina Batarags, China has at least 65 million empty homes — enough to house the population of France. It offers a glimpse into the country's massive housing-market problem, Business Insider, October 14, 2021,https://www.businessinsider.com/china-empty-homes-real-estate-evergrande-housing-market-problem-2021-10 .

[1][v] Michael Pettis, What Does Evergrande Meltdown Mean for China?,  September, 20, 2021,https://carnegieendowment.org/chinafinancialmarkets/85391

[1][vi] Bloomberg, China’s Debt-to-GDP Ratio Rises to Record 279.7% on Credit Boom, 8 May, 2023,https://www.bloomberg.com/news/articles/2023-05-08/china-s-debt-to-gdp-ratio-rises-to-record-279-7-on-credit-boom#xj4y7vzkg

[1][vii] Commodity.com, China’s National Debt Clock: What’s the Current Figure (and What’s Included), May 12, 2023,

https://commodity.com/data/china/debt-clock/

[1][viii] The Economist, China’s local-debt crisis is about to get nasty, May 4, 2023,https://www.economist.com/finance-and-economics/2023/05/04/chinas-local-debt-crisis-is-about-to-get-nasty


ABOUT THE AUTHOR(s)
Frederick William Engdahl (born August 9, 1944) is an American writer based in Germany. He identifies himself as an "economic researcher, historian and freelance journalist." Born in Minneapolis, Minnesota, United States, Engdahl is the son of F. William Engdahl Sr., and Ruth Aalund (b. Rishoff). Engdahl grew up in Texasand earned a degree in politics from Princeton University in 1966 (BA) followed by graduate study in comparative economics at the University of Stockholm from 1969 to 1970. He then worked as an economist and freelance journalist in New York and in Europe.


Commentary by Jeff J. Brown


I actually subscribed to F. William Engdahl, so I had already seen this and read this article. He usually does really excellent work, but sometimes he really gets off down a rabbit hole. And this is definitely one. A deep rabbit hole. Unless you go to China and see China, and see how it works and see how the economy is working and experience it internally, and understand how the government works, how the real estate market works, how the banks work, how the insurance companies work, how the infrastructure [is set up, it's hard to understand what's really happening].

It's too easy for people like Engdahl to think that China is just like the United States or Europe, and it's not. The land is all people-owned. The banks are all people-owned. The insurance companies are all people-owned. Much of the large scale industry is all people-owned. So plus you have a much more honest, caring government that's actually trying to help the people instead of trying to kill it [or bamboozle it]. It's just also wrongheaded. China's debt is absolutely a fraction of what it is for the United States and Europe. And so that is a non issue. I cover this all the time. Evergrande. It's a blessing for the people of China that Evergrande went belly up. What's going to happen is China—Baba Beijing—my name for the chinese government... The leadership will move in. They will take it into receivership. They will strip out the useful assets that can be put into state owned companies, and the investors are going to get the shaft. And that includes overseas investors. And also know that's just the way it is. The thousands of people who had apartments that were not finished or whatever, Baba Beijing will make sure that those apartments are finished. They will find diligent partners to finish those apartments. They will keep the citizens whole, and the investors are going to take the hit, be they Chinese, which is most of them, or overseas. So that's the way it works.

I was just there in May for an entire month. I was there in most of the month of the end of September and most of October. And you just have to see it to believe it. And I don't think he's ever been there, and he's just wrong on so many accounts. And I don't have time to go through line by line, but I just want to give you this overview and to see that when you own the land, when you own the banks, when the people own the land, the banks, the insurance companies, the major industries, all the public infrastructure, and you have an honest, hardworking, Confucian government committed [the results are much different].

Mao Zedong served the people. Of course, there's some corruption and they're cleaning it up. They put millions of, they punished millions of people in the last ten years. Some have even been executed for high financial crimes. Thousands are in jail. So they are kicking ass and taking names. And you just spend one day walking around anywhere in China, and the place is humping, bumping, hopping, going, moving, producing. You can just feel the economic energy when you're in China. And it has got the fastest growing economy. Big economy. Well, maybe India might be a little bit bigger this year, but it's the biggest economy in the world in PPP terms, and I'm not worried about it at all. And I'm sorry that Engdahl published this.


More to read about China's real estate sector:

https://chinarising.puntopress.com/2022/11/21/chinas-real-estate-sector-is-a-bursting-bubble-collapse-here-we-come-really-china-rising-radio-sinoland-221121/

On China supposedly going to implode with debt:

https://chinarising.puntopress.com/2023/09/16/china-is-going-to-collapse-not-really-heres-why-it-cannot-happen-china-rising-radio-sinoland-230916/

(Jan. 30, 2024)


APPENDIX
(CBS News)


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Yankee Micro Social Psychology Part II

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by Bruce Lerro / January 9th, 2024

Summary of Part I

In Part I of my article, I described how initially the field of social psychology had deep roots in the socio-cultural traditions of Wundt, Royce, Baldwin, Cooley, Thomas and Mead. But by the beginning of World War I a shift towards individualism can be seen in the work first of the behaviorist Watson, and most powerfully in the work of Floyd Allport, Herbert Blumer and symbolic interactionists. When it came to understanding group life these social atomists only tolerated three kinds of groups:

  • Fleeting face-to-face groups (interactional groups)
  • Groups that were in laboratory situations (interactional groups)
  • Derived groups which were mass aggregates based on polling

Missing were reference groups. To keep all of this straight, please see the table below. In Part II of my article, I present the reference group theory’s criticisms of two more sociological social psychologists – the dialogical psychology of Ivana Markova and the social construction theory of Kenneth Gergen.

 Types of Social Groups

Category of

 

Comparison

Interpersonal

 

Groups

Derived

 

Social groups

Intrinsic

 

Groups

Social structure Small face-to-face

 

Aggregates

Large mass aggregates

 

Publics

Small face-to face organic groups

 

Reference groups

Who is it directed to? In everyday life to particular individuals A pollster

 

No contact with others in the poll

Roles enacted independently of particular personalities
Examples Sexual advances, some acts of aggression or circumventing another person who is blocking a doorway Men, women, blacks, senior citizens, deaf, unemployed, homeless

 

(mass aggregates)

Married persons, occupational work groups

 

A local Baptist Church, a Hells Angels club

 

Provision of resources No practical resources for the formation and maintenance of identity At its best, state provides practical resources for the formation and maintenance of identity No practical resources for the formation and maintenance of identity
Duration of group No institutional structure

 

Created and dissolved in the social situation

Categories of groups remain members are born and die Maintain institutional structure as members come and go
Ontogenetic development Does not track purpose and development over time

 

One cannot make a lasting developmental projects with fleeting social

interactions with strangers

Does not track purpose and development over time

 

One cannot make a lasting developmental project out of being unemployed or retired or some other demographic membership

Can create a purpose and direction in life through Rites of passage, of status elevation or reversal

 

Routes are available for  management of reputation and self-worth

Degree of depth in social identity Superficial:

 

Flirting

Gaining temporary attention

Oppression in these groups can keep a developmental identity from getting off the ground or it could be a stimulus to improve standing in terms of race or gender. More threats to social identity:

 

An academic who publishes a disastrous book; a warrior who runs away; a mother who beats her children

Definition Populations whose members merely share a common property

 

Experimental settings

Populations whose members merely share a common property

 

Public opinion polls

Members are bound by local subcultures who have a history together of necessary, ongoing and deepening interactions
  Fleeting Encounters in everyday life

 

No commitment

Longstanding engagements with commitments, agreements and conventions  

War Research in World War II and Migration of European Social Psychologists

Just as in World War I, World War II catalyzed applied social psychology. They studied attitudes, troop morale and adjustments to combat conditions. Kurt Lewin developed a program to persuade housewives to change their food habits to promote the sale of U.S. savings bonds. Social psychologists were also involved in the study of psychological warfare. Bruno Bettelheim studied the effect of concentration camps on prisoners of war and The Tavistock Institute in England studied the dynamics of small groups.

Thanks to the barbarity of Hitler, there was a migration of academic refugees from Western Europe including Kohler, Lazerfeld, Lewin, Asch and Leon Festinger. France and Germany lost many psychologists to the war. The result is that after the war Yankee social psychology became the center around which social psychological research was funded for decades. There was considerable funding in Yankeedom for research in small group dynamics by the Office of Naval Research. The behavior of Europeans during World War II became the focus of Hannah Arendt’s study on Eichmann on the trial in Jerusalem. In the 1950s, Asch probed the question of why people conformed. In the 1960s Stanley Milgram set up experiments as to the conditions under which people obey. 

Solomon Asch and Reference Groups

The most articulate theoretical descriptions of social dimensions of cognition were offered by Solomon Asch in his text Social Psychology. According to John Greenwood, Asch understood attitudes as being constitutionally social. They arise from mutual dependence on reference groups. For example, the racial antagonism of southerners towards Blacks is not just directed at blacks. These attitudes also function as a cementing tie to their families, neighborhoods, race, jobs, their religion and political party loyalties. For Asch there is no such thing as attitudes taken separately. Asch denies that attitudes can be equated with what people have in common as Allport claimed.

In the original Asch experiment, conformity of individuals was not in response to interpersonal pressure from strangers nor were the individuals randomly selected. The extent to which people conform is connected to whether or not they know each other and have a history together. Interestingly, for members of individualist cultures, the difference between strangers and organic groups is not as great as between collectivists in-group and out-group. This results in different cross-cultural outcomes to conformity. The Japanese are more likely to conform if they are in the presence of other Japanese than Americans will in the presence of other Americans. However, the Japanese will be less conforming than Americans in the presence of strangers.

Cold War Impact on Social Psychology

According to Valsiner, the social sciences in Yankeedom throughout the 21st century have been inseparably connected with war preparation, the waging of war as well as trying to overcome the experience of war. After World War II, the US captured control over social science institutions by its power to give grants and publishing rights. This was inseparable from the crusade against communism.

Social psychology in this century has never been free of the distorting effects of wars, both hot and cold. On the whole, Greenwood writes:

the approach was ahistorical, acultural and decontextualized. (211) Socially engaged attitudes were held to represent the psychology of psychopathology of other-directed people  or “groupthink“ or nesting grounds for prejudice. (217)

In terms of research, the emphasis was on studying very small chunks of social life that could be quantitatively measured. In addition, research continued to imagine itself to be atheoretical as in the social learning theory of Bandura. In the study of a group’s conformity and/or a group’s susceptibility to persuasion, aggregates were used rather than reference groups. For example:

Lewin inspired his colleagues and students to artfully reproduce theoretical variables abstracted from the dynamics of real-life social processes in artfully managed and controlled experiments. The members of his groups were strangers.(205)

In the 60s

“Bystander effect”, discovered by Latané and Darley, of strangers’ response to cries of help were interpersonal, not social. Neither the victims or the helpers were presumed to be members of distinctive social groups. The explanations offered were diffused responsibility and failure to represent the situation as an emergency. (210)

In terms of the population chosen, there was an increasing use of college students – aggregates – as opposed to ongoing reference groups.

Lastly, social psychology from the 50s forward has continued to be driven by individualism. When individualism becomes an ideology raised against collectivism as the counter-ideology, it becomes a form of political propaganda which distorts the development of social psychology. Students such as Aronson and Zimbardo continued the individualist tradition. Even in Europe, Tajfel’s theory of social identity has its roots in Festinger’s theory of social comparison. Tajfel’s theory is an individualization of the social. It proposed a cognitive theory of prejudice as opposed to Sherif’s field studies based on reference groups.

Reference groups in the 60s

Social representation works of the 60’s and 70’s were Secord, Backman and Slavitt’s book, Understanding Social Life as well as  the work of Ralph Turner. Newcome and Turner’s Social Psychology: the Study of Human Interaction was a continuation of groups as reference groups. Michael Billig’s rhetorical approach to groups has done much to restore the cultural and temporal dimensions of social phenomenon. Moscovici chose Durkheim as an appropriate ancestor for his theory of representations and would be classified as sociological.

Revolt Against Individualism

Dialogical Psychology

Mead’s contention for the social nature of the mind returned in the 1970s along with the influence of European social psychology with its emphasis and the language, interpersonal dialogue and internalization of group process. Concepts such as intersubjectivity, interactional synchrony and empathy replaced Allport’s individuals who had hard boundaries around them. Dialogical theorists insisted that we have to start with the interpersonal relationships or the dyad in order to come to understand the mind of the individual. In her book Paradigms, Thought and Language Ivana Markova argues that most of Western psychology is riddled with dualisms that are the product of Descartes. These include mind-body; mind-emotions; thought-behavior; self and other and rationalism-empiricism. In order to break away from these dualisms, we must renounce Descartes and embrace Hegel.

Hegel was the first thinker to break with the dualism theory of minds and bodies of the Cartesian paradigm. For Markova, the mutual relationship between consciousness and its world evolves from abstract to concrete, from less discriminating to more discriminating structures. Hegel’s Phenomenology of Mind is the story of a social psychology of the cognizing mind’s development. They are arguments about the social rather than the individualistic nature of the mind and about the social nature of the acquisition of knowledge. Hegel wants to demonstrate the fundamental misconceptions of the traditional epistemology as well as its contradictory nature.

Markova takes Hegel’s five stages in the development of consciousness in the Phenomenology of Mind:

  • sense data
  • perception
  • understanding
  • self-consciousness
  • reason – recognition

and creates a loose connection between these stages and the development of awareness in ontogenetic development. Secondly, in her book Human Awareness, she thickens Mead’s understanding of the development of the self by adding the emotional development of empathy. She uses the work of Selman to develop a five-phase theory of perspective taken from birth to the teenage years. She fleshes out the dialectic between Mead’s I-Me dialogues by providing specific strategies that the I and the Me use.

Criticisms of Dialogical Psychology

There is the lack of connection between dialogical self-research and mainstream psychology. In part this is because the notion of dialogue has been largely neglected in psychology and other social sciences. Another disadvantage of the theory is that it lacks a research procedure that is sufficiently common to allow for the exchange of research data among investigators. Although different research tools have been developed by dialogical psychologists,  none of them are used by a majority of researchers in the field. This creates stumbling blocks for comparing research data. In addition, other researchers find the scientific work done thus far too heavily weighted on language and verbal exchange. While the theory explicitly acknowledges the importance of pre-linguistic gestures and other non-linguistic forms of dialogue, the actual research is typically taking place on the verbal level.  Some researchers would like to see more emphasis on the bodily aspects of dialogue.

Social constructionists challenged Yankee individualism of Allport

In the last two decades of the 20th century in psychology, controversies in social psychology have arisen between left wing “social constructionists” and most traditional social psychologists whom social constructionists have labeled “empiricists”. These mainstream social psychologists use interpersonal or derived groups. Kenneth Gergen challenged social psychology in at least five areas:

  • Empiricist social psychology lacks a sense of historicity.

Social psychology subjects such as socialization, the self, and persuasion techniques are presented in a universal manner as if these processes have not changed over the course of history. Gergen begins by suggesting that the major topics social psychology studies either change over the course of history or perish for lack of interest. So, for example, let’s take Goffman’s topic of behavior in public. Historically people behave differently in public depending on how the streets are constructed (if there are streets!); what transportation is available and whether the social class composition is rigid or fluid. Social realists or social reference group theory agrees with this.

  • Empiricists picture the social-individual relationship in a mechanical way.

Social existence is understood as a secondary, instrumental interaction, or social life is seen as a simple aggregate of individual wills. These social atomists reduce the group to a fleeting, ephemeral aggregate which evaporates when individuals decide to dissolve their social contract. Gergen suggests that the relationship between the social and individual is co-creative and already always the case. Social reference groups theory agrees with socially constructionists on this.

  • Empiricists ignore the political power dynamics that go on between stratified groups—class, race and gender—in everyday life.

For example, in social psychology textbooks, inter-group relationships are treated at the end of the textbook. This implies that there are no race or class relationships in the topics of the earlier chapters such as socialization, emotions or the construction of the self.

  • Empiricists treat language in a descriptive way and fail to consider the manipulative nature of language.

Allport and other individualist social psychologists treat language as a simple exchange of information between equals. This ignores that people coerce, use force and mass persuasion techniques to get their way. Besides description, there are other functions of language or micro-manipulation techniques (Cialdini, Influence) that Austin points out such as commands, questions, promises, requests and expressives that go unaddressed by empiricists.

  • Empiricists fail to consider that social life cannot be captured in laboratories.

Lab experiments are contrived and don’t test complex social processes. According to social constructionists, social psychology does not lend itself to experimentation because of the difficulty in reproducing the meaning of everyday situations in social psychology experiments. Because social studies are more of an in-vivo construction, it cannot be objectively recorded. In order to capture it in a lab the process is slowed down and simplified. When people know they are in a contrived situation, they do not react the same way they might in a natural setting. Yet if you try to do experiments in natural settings, it is more difficult to control for all the variables which might affect the outcome.

Social Reference Criticisms of Social Constructivism

According to Greenwood, up to a point social constructionism is a justifiable reaction to the individualism and social reductionism of Allport. However:

  • Social constructionists overstate the subjective agency of individuals and understate the importance of group loyalties that constrain individuals — family, religion, occupational roles and club memberships.

Greenwood criticizes social constructionists such as Graumann, Danziger and Farr because they lose the concreteness of group loyalties of reference groups by dissolving social life into language and cognition. As we saw earlier, social life is much more specific and tangible than the ethereal linguistic of social relations generally presented by social-constructionists.

  • Social constructionists overemphasize the importance of language

What is the relationship between language, society and the individual? Because language is a necessary condition for sociality in humans, social constructionists jump to the conclusion that it is language that creates social structures. Normally we think of our language as a description of the world and a map for getting around in it. Social constructionists understand language exchange not as a collaborative effort to understand the world but an artifact through which we decide what counts as an object. An extreme version of constructionism argues that language is not about the world but a living record of the power struggles between derived social groups—class, race and gender struggles. Social identity is inseparable from the social processes of language to negotiate and manipulate, using rhetoric or propaganda. For Gergen, social dimensions of phenomena such as political stratification and economic exchange are not intrinsic properties and real in themselves independent of language, but functions of our linguistic or cognitive constructs of them.

  • Social Constructionists fail to understand the power of intrinsic groups to stabilize social identity

For social constructionists social identities are constructed out of socially negotiated forms of discourse. There is nothing more to identity than social discourse. They deny the intrinsically social nature of identity or that social emotions form out of loyalty to socially intrinsic groups. As most feminists recognize, changes in vocabulary, by itself, will not ensure the creation of alternative occupations, membership in clubs or higher status positions in religious groups. Greenwood points out that the Hungarian language is entirely non-sexist. One can only refer to a third party by their non-gender. Despite this, Hungary is not known for having a large number of women in the paid work-force. The social identity of a scientist doesn’t come into being and pass away depending on how people talk to him and how he talks to them in the course of a single day. The social identity of a scientist involves actions such as publication in internationally refereed journals, by peer replication of significant results and the attainment of prestigious positions.

  • Social constructionists fail to understand the power of intrinsic groups (reference group) to understand the social nature of emotions

Constructionists say theoretical discourse “about” emotions does not describe independent psychological states but is rather employed to serve social performing functions such as warning, excusing or endorsing. For example, claiming to be depressed is employed to excuse one’s behavior or elicit sympathy rather than to describe one’s psychological state. Talk about mental talk is largely performative. Language does not map an independent reality. Social constructions argue that emotions come from the labeling process involved in language use.

Social constructionists assume nothing more than that reified social labels exist which are socially constructed. This ignores the fact that emotions are socially constituted for purposes connected to the conventions of long-standing social groups. For example, for a man to be able to admit they are hurt or sad rather than angry in an Anger Management class may be transformative for the man as an individual in opening up a greater range of emotions. The same is true of women who can learn to say they are angry instead of being “upset”. However, both men and women have to face their reference groups who may not like men who express hurt or humiliation or women who express anger. Those reference group loyalties and expectations are not going to dissolve just because these individual men and women have gone to therapy.

The social constitution of emotions from reference groups

Beneath the froth: unconscious grounding of socially constituted emotions

The socially constituted nature of emotions does not include all emotions Emotions such as physiological pain or sensations like itching or hunger are not discussed. The non-social emotions are also excluded like rage or fear that we share with non-social, non-linguistic animals.

Socially constituted emotions are grounded by three deeper levels. First, different cultures take pride in different things such as home-building, virginity, academic achievements or birds they have bred. Second are the social conventions and agreements about how to behave in these settings.  What is expected and how to play one’s role in a reference group within a culture. Thirdly, within this reference group we are motivated to be included, hold prestige, be honored and respected, have a good reputation, achieve power or have responsibilities. These commitments have been identified in all ages and cultures. On the other hand, we would prefer not to be excluded, degraded, nor appear offensive to others. To summarize, social emotions are grounded in what an entire culture finds a worthy activity; the commitments in our reference group shares within the culture and the social motivations that follow from them. None of this necessarily involves social labeling of emotions that social constructions make so much of.

Long standing human emotions like shame, remorse, pride, envy, jealously, anger, guilt and disappointment are socially constituted. Shame does not occur in us spontaneously and independently of imagined evaluation by our reference groups. Shame has to be taught. Parents would wait a lifetime for purely spontaneous expressions of shame in their children. We have to learn to represent and come to treat certain classes of actions or failure to act as degrading and humiliating and reflecting negatively on our identity. Initially epileptic seizures are reacted to by the epileptic with distress and fear. Only later is the epileptic taught to label their arousal as shame, pride or disappointment.

The depth of our social identities – what events trigger in us such as pride, shame or  indifference – are connected to the presence of our loyalties to constituted groups and the social virtues we aspire to within them. Cheating on an exam will inspire more disgust in a teacher than would theft upset a cashier at a market. Failure to support a comrade in the military means more to a soldier than to a lawyer who fails to support another lawyer. Such characteristically human emotions and motives do not simply occur in atomistic isolation.

  • Social constructivists enmesh the relationship between individualism and empirical research methods

Social constructionists dismiss all experimental methods as inherently individualist.  Constructionists and phenomenologists argue that the experimental approach is narrowly restricted because cognitive structures used to develop the research design are already products of society and a specific historical trajectory—individualistic.

For example:

Samuelson explains why social psychologists settled on experimental method because of pressure to publish or perish which encouraged swift, piecemeal unread and unreadable publications loaded on method but with little meaning. (227) Actual social groups were gradually replaced by hypothetical groups that had a purely statistical reality. (224)

Greenwood is skeptical that by itself, commitment to more sophisticated statistical techniques was responsible for the abandonment of a more sociological social psychology. The reason was because its neglect is at least as old as the interwar years. It is true that the development of American social psychology was affected by grant funding agencies such as Carnegie, Rockefeller, Ford, Sage and the Office of Naval Research. The Ford and Sage foundations were unlikely to fund research that would undermine psychological foundations of autonomy and political liberal individualism. It is also true that social psychologists were steered by these agencies in a direction of small groups rather than large groups and their power dynamics. However, Greenwood says, these factors seem insufficient to explain the specific neglect of the reference group. Social and political factors may explain why American social psychology focused on certain topics at the expense of others (why aggression became a topic) but not at the neglect of the social dimensions of the topics studied. (Why some classes, religions, region of the United States are more aggressive than others).

As Greenwood argues:

the problem was not that experimental method precluded studying the social dimensions of human psychology, but because of the impoverished conception of social groups that came to inform experimental programs of American social psychology. (160)

All experiments of science are not, in their nature, individualist. As mentioned earlier, the experimental methods of social psychologists such as Sherif, Asch and Milgram all captured some very deep truths about our sociality using experimental methods that were far from contrived. Asch traced social group orientation to the role they played by reference groups. Secondly, it is important to understand why there aren’t more studies using reference groups as a base for experiments, not dispensing with experiments, per se.

Greenwood insists that the possibility of experimental social psychology should be directed at the exploration of socially engaged psychological states based on reference groups. It is legitimate and achievable. Individuals do not have to be reduced to individual psychological states in order to be analyzed using research methods. One of the virtues of experimental role-playing is its potential ability to reproduce the social demands of everyday life rather than the peculiar demands of ambiguous laboratory experiments employing deception. The social dimensions of human psychology could be studied experimentally as long as the subjects in experimental groups were pre-selected members of reference social groups.

  • Social constructionists have misunderstood the place of pragmatism in American social psychology

The original pragmatists Peirce, James, Dewey and Mead were all pro-science and used the experimental method. With the possible exception of William James, all would have criticized Allport and the empiricists as being individualistic (Mead, Dewey) and nominalist (Peirce). Yet none of them would have criticized the very idea of conducting experiments. In social psychology both Sherif and William Thomas were committed pragmatists and Sherif’s work on inter-group relationship was experimental.

When social constructivists and phenomenologists claim the mantle of pragmaticism as their own, they are taking into the bargain a more idealist version of pragmaticism of Richard Rorty.

  • Social Constructionists overly politicize the field of social psychology in order to understand the predominance of individualist social psychology

Lastly, there is no necessary relationship between the socio-political orientation of the scientists and whether or not they are for or against the experimental method. For example, Sherif and Asch were both socialists yet both were committed to the scientific method. The idea of linking science to capitalism and proposing that only liberals portray science in a favorable light as a problem is a product of the New Left in the 60s, the Frankfurt School and the legacy of Western Marxism which had severed its hopes for a place of science in its vision of the future.

Overview of the History of Yankee Social Psychology

Starting with continental Europe in the middle of the 19th century, social psychology was concerned with how society was imported into the mind of the individual to create an internalized social life. These were the concerns of Adam Smith and David Hume. In Germany Herder (with language) and Herbert (with Folk psychology) continued the emphasis in cross-cultural comparisons of social life. Espinas and Darwin drew references between humans and other animals. Darwin compared the gestures and emotional life of humans and chimps. Espinas compared the social life of humans to the social life of insects. What is provocative is that for the first 60 years of psychology (1850-1900) social psychology was comparative psychology (with other animals), cultural and dominated by Europe. There was no individualism in social psychology nor was it prevalent in the United States.

A transition figure beginning in the 1880s was Wilhelm Wundt who wanted to study the psychology of individuals in laboratories while at the same time developing his own version of cross-cultural psychology. Individualism came out in its brashest form in the social Darwinism of Spencer in England and Sumner in the United States. The avalanche towards individualist social psychology began the pragmatist work of William James and erupted into full scale ideologies in the form of Watson’s behaviorism. Two different forms of individualist psychology began to develop on separate sides of the Atlantic just before the outbreak of war:

  • Behaviorism in the US (perspective of the observer)
  • Gestalt perception theory in Germany (perspective of the actor)

Both forms of psychology agreed that the starting point of social psychology ought to be within the individual. The differences were that behaviorism examined conduct and gestalt probed human perception. Between the wars Floyd Alport’s behaviorism insisted that there was nothing in social life that could not be explained by individual psychology. This included public opinion and rumors.

It is tempting to imagine that this individualist version of social psychology went unopposed in this time period, but that is not the case. Alongside the behaviorism and social atomism of Floyd Allport and the individualist symbolic interaction of Blumer, there was a tendency toward a continuation of a sociological social psychology which inherited and developed the ideas of Adam Smith and David Hume. The work of Baldwin, Cooley, Thomas and Mead kept the sociological social psychology alive in the United States. At the same time, in Russia the work of Vygotsky built upon and expanded the work of Mead. Vygotsky and his comrades Luria and Leontiev developed the first explicitly socialist psychology which included a continuation of comparative psychology, added a historical dimension to social psychology, explained the social origin of higher mental functions and developed a cooperative theory of learning (through the zone of proximal development).

During the 1920s and 1930s individualist social psychology continued in the field of mass behavior in the form of Walter Lippman’s pessimistic book, Public Opinion. Sociological social psychology responded with Reich’s Mass Psychology of Fascism, and Bettelheim’s writings on the psychology of concentration camp victims. Undeterred by the horrors of war in Europe, behaviorist social psychology continued blithely along churning out public opinion polls, including attitudes about everything but power politics and political economy.

During World War II many European social psychologists fled Europe and contributed some of the best research on group dynamics. This included Asch’s experiment on conformity, and Sherif’s experiments on inter-group conflict. This was followed in the 60s by Moscovici’s study on the power of minorities to influence majorities and Milgram’s great experiment on obedience.

By the 1960s radical behaviorism went into decline. Goffman’s work on stigma, life in mental institutions, focused groups and behavior in public added a Durkheimian slant to a wide variety of social life. Up until the 1960s the field of crowd psychology was dominated by the legacy of the right wing ideas of Le Bon and called by later theorists “mass hysteria theory”. New crowd theorists developed two more moderate competing theories – “emergent norm theory” and “structural functionalist theory”.  By the early 1970s more radical left-wing theories of crowds developed largely from the experience of crowds during the social movement of the 60s. My discussion of crowd psychology can be found in my article Crowds, Masses and Movements: Right-Wing and Left-Wing Macro Social Psychology.

In the 80s and 90s behaviorist individualist empiricism was attacked in its description of how people were socialized by two new forms. One that emerged out of Europe was the dialogical self of Hermans and Markova. The second one from the US is in Kenneth Gergen’s social constructionism.  Meanwhile in the late 1990s John Greenwood sought to revive the reference group theory of Asch and Sherif. From this position he criticized both dialogical psychology and social constructionism. Lastly, individualist social psychology has become more cognitive rather than behavioral. The work of Festinger on cognitive dissonance theory was carried on by Aronson and Zimbardo.


• First published at Socialist Planning Beyond Capitalism


ABOUT THE AUTHOR / SOURCE
Bruce Lerro has taught for 25 years as an adjunct college professor of psychology at Golden Gate University, Dominican University and Diablo Valley College. He has applied a Vygotskian socio-historical perspective to his four books: From Earth-Spirits to Sky-Gods: the Socio-ecological Origins of Monotheism, Individualism and Hyper-Abstract Reasoning Power in Eden: The Emergence of Gender Hierarchies in the Ancient World Co-Authored with Christopher Chase-Dunn Social Change: Globalization from the Stone Age to the Present and Lucifer's Labyrinth: Individualism, Hyper-Abstract Thinking and the Process of Becoming Civilized He is also a representational artist specializing in pen-and-ink drawings. Bruce is a libertarian communist and lives in Olympia WA.


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