NASCAR and the US Senate
Thanks to Alan Brodrick / Fluxed Up World
You cannot step into the same river twice, for fresh waters are ever flowing in upon you. -- Heraclitus
The 14 Defining Characteristics Of Fascism
Free Inquiry / Spring 2003
Dr. Lawrence Britt has examined the fascist regimes of Hitler (Germany), Mussolini (Italy), Franco (Spain), Suharto (Indonesia) and several Latin American regimes. Britt found 14 defining characteristics common to each:
1. Powerful and Continuing Nationalism - Fascist regimes tend to make constant use of patriotic mottos, slogans, symbols, songs, and other paraphernalia. Flags are seen everywhere, as are flag symbols on clothing and in public displays.
2. Disdain for the Recognition of Human Rights - Because of fear of enemies and the need for security, the people in fascist regimes are persuaded that human rights can be ignored in certain cases because of "need." The people tend to look the other way or even approve of torture, summary executions, assassinations, long incarcerations of prisoners, etc.
3. Identification of Enemies/Scapegoats as a Unifying Cause - The people are rallied into a unifying patriotic frenzy over the need to eliminate a perceived common threat or foe: racial , ethnic or religious minorities; liberals; communists; socialists, terrorists, etc.
4. Supremacy of the Military - Even when there are widespread domestic problems, the military is given a disproportionate amount of government funding, and the domestic agenda is neglected. Soldiers and military service are glamorized.
5. Rampant Sexism - The governments of fascist nations tend to be almost exclusively male-dominated. Under fascist regimes, traditional gender roles are made more rigid. Divorce, abortion and homosexuality are suppressed and the state is represented as the ultimate guardian of the family institution.
6. Controlled Mass Media - Sometimes to media is directly controlled by the government, but in other cases, the media is indirectly controlled by government regulation, or sympathetic media spokespeople and executives. Censorship, especially in war time, is very common.
7. Obsession with National Security - Fear is used as a motivational tool by the government over the masses.
8. Religion and Government are Intertwined - Governments in fascist nations tend to use the most common religion in the nation as a tool to manipulate public opinion. Religious rhetoric and terminology is common from government leaders, even when the major tenets of the religion are diametrically opposed
to the government's policies or actions.
9. Corporate Power is Protected - The industrial and business aristocracy of a fascist nation often are the ones who put the government leaders into power, creating a mutually beneficial business/government relationship and power elite.
10. Labor Power is Suppressed - Because the organizing power of labor is the only real threat to a fascist government, labor unions are either eliminated entirely, or are severely suppressed.
11. Disdain for Intellectuals and the Arts - Fascist nations tend to promote and tolerate open hostility to higher education, and academia. It is not uncommon for professors and other academics to be censored or even arrested. Free expression in the arts and letters is openly attacked.
12. Obsession with Crime and Punishment - Under fascist regimes, the police are given almost limitless power to enforce laws. The people are often willing to overlook police abuses and even forego civil liberties in the name of patriotism. There is often a national police force with virtually unlimited power in fascist nations.
13. Rampant Cronyism and Corruption - Fascist regimes almost always are governed by groups of friends and associates who appoint each other to government positions and use governmental power and authority to protect their friends from accountability. It is not uncommon in fascist regimes for national resources and even treasures to be appropriated or even outright stolen by government leaders.
14. Fraudulent Elections - Sometimes elections in fascist nations are a complete sham. Other times elections are manipulated by smear campaigns against or even assassination of opposition candidates, use of legislation to control voting numbers or political district boundaries, and manipulation of the media. Fascist nations also typically use their judiciaries to manipulate or control elections.
Source / Rense.com
And many thanks to an article by Thomas S. Harrington on Common Dreams for identifying the list from Rense.
Fluxed Up World
Hallelujah.
Praise the Lord for all good things ...
We blew their balls into shards of dust,
Into shards of fucking dust …
10 Reasons the US is No Longer the Land of the Free
By Jonathan Turley / January 14, 2012
Every year, the State Department issues reports on individual rights in other countries, monitoring the passage of restrictive laws and regulations around the world. Iran, for example, has been criticized for denying fair public trials and limiting privacy, while Russia has been taken to task for undermining due process. Other countries have been condemned for the use of secret evidence and torture.
Even as we pass judgment on countries we consider unfree, Americans remain confident that any definition of a free nation must include their own — the land of free. Yet, the laws and practices of the land should shake that confidence. In the decade since Sept. 11, 2001, this country has comprehensively reduced civil liberties in the name of an expanded security state. The most recent example of this was the National Defense Authorization Act, signed Dec. 31, which allows for the indefinite detention of citizens. At what point does the reduction of individual rights in our country change how we define ourselves?
While each new national security power Washington has embraced was controversial when enacted, they are often discussed in isolation. But they don’t operate in isolation. They form a mosaic of powers under which our country could be considered, at least in part, authoritarian. Americans often proclaim our nation as a symbol of freedom to the world while dismissing nations such as Cuba and China as categorically unfree. Yet, objectively, we may be only half right. Those countries do lack basic individual rights such as due process, placing them outside any reasonable definition of “free,” but the United States now has much more in common with such regimes than anyone may like to admit.
These countries also have constitutions that purport to guarantee freedoms and rights. But their governments have broad discretion in denying those rights and few real avenues for challenges by citizens — precisely the problem with the new laws in this country.
The list of powers acquired by the U.S. government since 9/11 puts us in rather troubling company.
Assassination of U.S. citizens
President Obama has claimed, as President George W. Bush did before him, the right to order the killing of any citizen considered a terrorist or an abettor of terrorism. Last year, he approved the killing of U.S. citizen Anwar al-Awlaqi and another citizen under this claimed inherent authority. Last month, administration officials affirmed that power, stating that the president can order the assassination of any citizen whom he considers allied with terrorists. (Nations such as Nigeria, Iran and Syria have been routinely criticized for extrajudicial killings of enemies of the state.)
Indefinite detention
Under the law signed last month, terrorism suspects are to be held by the military; the president also has the authority to indefinitely detain citizens accused of terrorism. While the administration claims that this provision only codified existing law, experts widely contest this view, and the administration has opposed efforts to challenge such authority in federal courts. The government continues to claim the right to strip citizens of legal protections based on its sole discretion. (China recently codified a more limited detention law for its citizens, while countries such as Cambodia have been singled out by the United States for “prolonged detention.”)
Arbitrary justice
The president now decides whether a person will receive a trial in the federal courts or in a military tribunal, a system that has been ridiculed around the world for lacking basic due process protections. Bush claimed this authority in 2001, and Obama has continued the practice. (Egypt and China have been denounced for maintaining separate military justice systems for selected defendants, including civilians.)
Warrantless searches
The president may now order warrantless surveillance, including a new capability to force companies and organizations to turn over information on citizens’ finances, communications and associations. Bush acquired this sweeping power under the Patriot Act in 2001, and in 2011, Obama extended the power, including searches of everything from business documents to library records. The government can use “national security letters” to demand, without probable cause, that organizations turn over information on citizens — and order them not to reveal the disclosure to the affected party. (Saudi Arabia and Pakistan operate under laws that allow the government to engage in widespread discretionary surveillance.)
Secret evidence
The government now routinely uses secret evidence to detain individuals and employs secret evidence in federal and military courts. It also forces the dismissal of cases against the United States by simply filing declarations that the cases would make the government reveal classified information that would harm national security — a claim made in a variety of privacy lawsuits and largely accepted by federal judges without question. Even legal opinions, cited as the basis for the government’s actions under the Bush and Obama administrations, have been classified. This allows the government to claim secret legal arguments to support secret proceedings using secret evidence. In addition, some cases never make it to court at all. The federal courts routinely deny constitutional challenges to policies and programs under a narrow definition of standing to bring a case.
War crimes
The world clamored for prosecutions of those responsible for waterboarding terrorism suspects during the Bush administration, but the Obama administration said in 2009 that it would not allow CIA employees to be investigated or prosecuted for such actions. This gutted not just treaty obligations but the Nuremberg principles of international law. When courts in countries such as Spain moved to investigate Bush officials for war crimes, the Obama administration reportedly urged foreign officials not to allow such cases to proceed, despite the fact that the United States has long claimed the same authority with regard to alleged war criminals in other countries. (Various nations have resisted investigations of officials accused of war crimes and torture. Some, such as Serbia and Chile, eventually relented to comply with international law; countries that have denied independent investigations include Iran, Syria and China.)
Secret court
The government has increased its use of the secret Foreign Intelligence Surveillance Court, which has expanded its secret warrants to include individuals deemed to be aiding or abetting hostile foreign governments or organizations. In 2011, Obama renewed these powers, including allowing secret searches of individuals who are not part of an identifiable terrorist group. The administration has asserted the right to ignore congressional limits on such surveillance. (Pakistan places national security surveillance under the unchecked powers of the military or intelligence services.)
Immunity from judicial review
Like the Bush administration, the Obama administration has successfully pushed for immunity for companies that assist in warrantless surveillance of citizens, blocking the ability of citizens to challenge the violation of privacy. (Similarly, China has maintained sweeping immunity claims both inside and outside the country and routinely blocks lawsuits against private companies.)
Continual monitoring of citizens
The Obama administration has successfully defended its claim that it can use GPS devices to monitor every move of targeted citizens without securing any court order or review. (Saudi Arabia has installed massive public surveillance systems, while Cuba is notorious for active monitoring of selected citizens.)
Extraordinary renditions
The government now has the ability to transfer both citizens and noncitizens to another country under a system known as extraordinary rendition, which has been denounced as using other countries, such as Syria, Saudi Arabia, Egypt and Pakistan, to torture suspects. The Obama administration says it is not continuing the abuses of this practice under Bush, but it insists on the unfettered right to order such transfers — including the possible transfer of U.S. citizens.
These new laws have come with an infusion of money into an expanded security system on the state and federal levels, including more public surveillance cameras, tens of thousands of security personnel and a massive expansion of a terrorist-chasing bureaucracy.
Some politicians shrug and say these increased powers are merely a response to the times we live in. Thus, Sen. Lindsey Graham (R-S.C.) could declare in an interview last spring without objection that “free speech is a great idea, but we’re in a war.” Of course, terrorism will never “surrender” and end this particular “war.”
Other politicians rationalize that, while such powers may exist, it really comes down to how they are used. This is a common response by liberals who cannot bring themselves to denounce Obama as they did Bush. Sen. Carl Levin (D-Mich.), for instance, has insisted that Congress is not making any decision on indefinite detention: “That is a decision which we leave where it belongs — in the executive branch.”
And in a signing statement with the defense authorization bill, Obama said he does not intend to use the latest power to indefinitely imprison citizens. Yet, he still accepted the power as a sort of regretful autocrat.
An authoritarian nation is defined not just by the use of authoritarian powers, but by the ability to use them. If a president can take away your freedom or your life on his own authority, all rights become little more than a discretionary grant subject to executive will.
The framers lived under autocratic rule and understood this danger better than we do. James Madison famously warned that we needed a system that did not depend on the good intentions or motivations of our rulers: “If men were angels, no government would be necessary.”
Benjamin Franklin was more direct. In 1787, a Mrs. Powel confronted Franklin after the signing of the Constitution and asked, “Well, Doctor, what have we got — a republic or a monarchy?” His response was a bit chilling: “A republic, Madam, if you can keep it.”
Since 9/11, we have created the very government the framers feared: a government with sweeping and largely unchecked powers resting on the hope that they will be used wisely.
The indefinite-detention provision in the defense authorization bill seemed to many civil libertarians like a betrayal by Obama. While the president had promised to veto the law over that provision, Levin, a sponsor of the bill, disclosed on the Senate floor that it was in fact the White House that approved the removal of any exception for citizens from indefinite detention.
Dishonesty from politicians is nothing new for Americans. The real question is whether we are lying to ourselves when we call this country the land of the free.
[Jonathan Turley is a professor of law at George Washington University.]
Source / Washington Post
Fluxed Up World
Here's a Way to Eliminate the Regulators and Lawyers, and Build Community At the Same Time: Organize and Declare "Food Sovereignty," Like Sedgwick, Maine
By David E. Gumpert / March 7, 2011
Maybe the citizens of tiny Sedgwick on the Maine coast were listening to the calls of Dave Milano, Ken Conrad, and others for more trust and community, and less rigid one-size-fits-all food regulation.
On Saturday morning, Sedgwick became likely the first locale in the country to pass a "Food Sovereignty" law. It's the proposed ordinance I first described last fall, when I introduced the "Five Musketeers", a group of farmers and consumers intent on pushing back against overly aggressive state food regulators. The regulators were interfering with farmers who, for example, took chickens to a neighbor for slaughtering, or who sold raw milk directly to consumers.
The proposed ordinance was one of 78 being considered at the Sedgwick town meeting, that New England institution that has stood the test of time, allowing all of a town's citizens to vote yea or nay on proposals to spend their tax money and, in this case, enact potentially far-reaching laws with national implications. They've been holding these meetings in the Sedgwick town hall (pictured above) since 1794. At Friday's meeting, about 120 citizens raised their hands in unanimous approval of the ordinance.
Citing America's Declaration of Independence and the Maine Constitution, the ordinance proposed that "Sedgwick citizens possess the right to produce, process, sell, purchase, and consume local foods of their choosing." These would include raw milk and other dairy products and locally slaughtered meats, among other items.
This isn't just a declaration of preference. The proposed warrant added, "It shall be unlawful for any law or regulation adopted by the state or federal government to interfere with the rights recognized by this Ordinance." In other words, no state licensing requirements prohibiting certain farms from selling dairy products or producing their own chickens for sale to other citizens in the town.
What about potential legal liability and state or federal inspections? It's all up to the seller and buyer to negotiate. "Patrons purchasing food for home consumption may enter into private agreements with those producers or processors of local foods to waive any liability for the consumption of that food. Producers or processors of local foods shall be exempt from licensure and inspection requirements for that food as long as those agreements are in effect." Imagine that--buyer and seller can agree to cut out the lawyers. That's almost un-American, isn't it?
This from a press release put out after the vote by supporters:
"Local farmer Bob St.Peter noted the importance of this ordinance for beginning farmers and cottage producers. 'This ordinance creates favorable conditions for beginning farmers and cottage-scale food processors to try out new products, and to make the most of each season's bounty,' said St.Peter. 'My family is already working on some ideas we can do from home to help pay the bills and get our farm going.'
"Mia Strong, Sedgwick resident and local farm patron, was overwhelmed by the support of her town. 'Tears of joy welled in my eyes as my town voted to adopt this ordinance,' said Strong. 'I am so proud of my community. They made a stand for local food and our fundamental rights as citizens to choose that food.'"
The ordinance comes up for a vote in three other Maine towns upcoming--Penobscott, Brooksville, and Blue Hill.
(Thanks to Deborah Evans, a Sedgwick area farmer, for providing information for this post, and the photo above.)
Source / The Complete Patient
Fluxed Up World
And Possibly the Collapse of the US
By Richard D. Jehn / January 9, 2012
Although my headline implies catastrophe, and I firmly believe that there are now factors beyond our control that strongly suggest we are in for an unprecedented hard time, this article is actually one of hope and a call to action for those who are inclined. First I will discuss briefly those things I think are conspiring to bring on the collapse of US society. I will conclude the article with things that I believe every one of us should become involved in to make the end of growth easier and the transition to a steady-state economy less painful.
It is now five years since Richard Heinberg published The Party's Over (2nd edition), a chronicle of peak oil and why there are few strategies that will help us come up with the shortage in energy as oil production truly begins to fall. He just published a more encompassing undertaking titled The End of Growth that provides some concrete evidence for things I have begun saying in the past two years.
I believe there are four prime factors which may bring us to economic and social collapse: (1) peak oil (which has just begun to have its effects; gasoline prices will never fall again); (2) climate change (which I now suspect cannot be reversed even if every nation world-wide adopted the equivalent of the Kyoto Protocol to the United Nations Framework Convention on Climate Change tomorrow); (3) the financial crisis (which is far from over; signs are that the US is even closer to bankruptcy than previously believed); and (4) the crisis of industrial agriculture (which is slowly killing us off, despite its best intentions). There are related factors which are of equal importance that I won't discuss, such as 'peak water' and 'peak food' (see The End of Growth).
I am not an expert on petroleum extraction or any of its related activities. Nonetheless, it is apparent from even casual reading that we have passed the point known as peak oil (where world oil production begins to decline), probably about 5 years ago. Alternative meaningful sources of energy have not seen the level of development that will be necessary to make a smooth transition from oil to something else (although China is pouring significant resources into the development of renewable energy). No matter what we do in the next 20 years, peak oil will have a profound impact on everything about our present-day lives. Remember that a typical grocery store will empty within three days with no truck deliveries, 80% of our electricity is supplied by generation plants that use some form of hydrocarbons, the source of all plastic goods is oil, and a myriad of other things too numerous to list.
Global warming is now a fait accompli in the eyes of most climate scientists world-wide. The polar ice caps are melting, California, Texas, Arizona and New Mexico are burning, storms are becoming more intense with each passing season, and we have really just begun to see the first impacts of this new climate regime. I believe that each passing season we will witness more intense storms and greater climate chaos across the globe. I also believe that there is exactly one solution available to us: adaptation. We are no longer capable of reversing the effects of what has begun in earnest, and the impact, particularly on agriculture, will be devastating.
The financial crisis of 2008 was precipitated by a corrupt capitalist system in the US driven by greed, but it was dramatically accelerated by a largely unsupervised financial sector's activities that emulated gambling. The Financial Crisis Inquiry Commission report provides a large number of reasons for what happened, but what they fail to do adequately is summarize the structural issues that remain and will likely lead to the financial collapse that I believe is imminent. There are now numerous publications (see Reinventing Collapse, The Myth of Endless Growth: Exposing Capitalism's Insustainability, Collapse: How Societies Choose to Fail or Succeed) suggesting that capitalism is really at fault.
Do you remember the advertising from the 1950s where some fellow with a deep, resonant voice reminds us that we will achieve "Better Living Through Chemistry"? Industrial agriculture is one of the results of that perspective, as are our toxic bodies and surroundings, numerous poisons used in war, and an endless reliance on unhealthy, unnatural solutions to our problems. Industrial agriculture is frequently touted as the solution to the imminent food shortages world-wide, but in Diet for a Hot Planet, Anna Lappé argues that industrial agriculture may not be necessary to feed a hungry world. Regardless, the use of poisonous substances on our food supply to control pests, weeds, and diseases is counterintuitive at best, sheer stupidity at worst. In more recent years, growth hormones and antibiotics used in raising our meat have yielded horrible results - antibiotic-resistant bacteria, MRSA in hospitals, and the proliferation of truly dangerous diseases that require ever-stronger drugs to combat.
All these negatives do not have to give us a catastrophic outcome; however, we really cannot waste time and we must personally start with concrete positive actions. What I believe has happened is that we have completely disconnected from a large number of the things that actually matter, such as ensuring we have a healthy food supply, expressing compassion for each other, cooperating to achieve common goals.
The first obvious step we all should be taking is to grow our own gardens including preserving the food produced to last the Winter. We should all make every effort to reject industrial agriculture completely, refusing to purchase processed foods, rejecting fruits and vegetables that are treated with chemical herbicides and pesticides (that are mostly based on chemicals left over from previous military research efforts into nasty things like nerve gas) and fertilizers that are based on petroleum products, and also rejecting meats that contain antibiotics and other drug or chemical treatments. Failing to do so could have quite negative impacts personally - cancer or other diseases such as asthma related to poisons in our immediate environment, or less obvious illnesses such as chronic allergies.
The second clear step is to reduce energy usage to the greatest extent possible. This is really not a trivial proposition, since it entails eliminating car travel from your life if you mean it. There is no realistic way that North America is going to keep up its oil/car habit at present levels for very long. The likelihood is that pricing will drive some to stop driving, but for others, it will take more to change their priorities. If you want to be realistic about what is coming, the time to do it is now - get cars out of your life to the extent possible.
Other energy conservation steps would be to install solar panels, or a wind or water power generator for your home, eliminating the purchase of plastics, and taking daily concrete steps to eliminate your reliance on hydrocarbons.
Another necessary step is to recycle everything. In today's world, there is not much excuse for failing to recycle as much as humanly possible, and laziness does not qualify as a good reason. Especially non-renewable natural resources such as mined metals and minerals, and hydrocarbons should be maximally recycled.
Finally, get involved in the Transition movement. Taken from the Transition Whatcom Web site, "The goal of [...] all Transition Initiatives is to create a long term Energy Descent Action Pathway, a blueprint - by the community, for the community - of how to significantly reduce energy use and yet provide for our basic needs in times of energy scarcity." There are other similar organizations that are moving toward a different world, for example Business Alliance for Local Living Economies and all its myriad local organization members such as Bellingham's Sustainable Connections. Get involved as it is very likely that you have a local organization that is doing remarkably good works to turn this planet around.
There are myriad examples of remarkable things happening around the country and around the world. For example, a New England town recently enacted 'food sovereignty' legislation that rejects federal and state overview of the production and distribution of local food. In Diet for a Hot Planet, Anna Lappé relates cases of replacing industrial agriculture with sustainable organic farming with comparable yields and much higher quality produce.
We must reject the status quo capitalist approach and build a new society. Welcome to the New World.
References
Diamond, Jared. 2005, 2011. Collapse: How Societies Choose to Fail or Succeed. Penguin.
Flannery, Tim. 2010. Here on Earth: A Natural History of the Planet. Atlantic Monthly Press.
Heinberg, Richard. 2005. The Party's Over: Oil, War and the Fate of Industrial Societies, 2nd edition. New Society Publishers.
_______. 2011. The End of Growth: Adapting to Our New Economic Reality. New Society Publishers.
Lappé, Anna. 2010. Diet for a Hot Planet: The climate crisis at the end of your fork and what you can do about it. Bloomsbury.
Orlov, Dmitry. 2008. Reinventing Collapse: The Soviet Example and American Prospects. New Society Publishers.
Strauss, William. 2010. The Myth of Endless Growth: Exposing Capitalism's Insustainability. Lulu Press.
Fluxed Up World
How We Got Here With the Economy and How to Get Out
By Robert Freeman / January 1, 2012
It’s easy to get fixated with small-bore issues on the economy, even if they don’t seem so small-bore at the time. Stimulus packages. Bailouts. Debt ceilings. Deficit commissions. Payroll tax-cut extensions. They seem like life and death issues while they’re being fought out.
But, in fact, they are distractions from the one real question that dominates all others, which is this: for whom should the economy be run? Should it be operated “to promote the general welfare” of 297 million people, the 99 percent? Or should it be run to benefit 3 million, the one percent?
Right now, the answer is that the economy is a machine, with the government as its operator, for transferring two hundred years of accumulated national wealth to those who are already the most wealthy, the one percent. And we should be clear about two things: this is a choice; and it’s working. The rich are getting much richer while everyone else is being stripped of their incomes, their assets, their retirement security, and all the elements of the social safety net enacted since the Great Depression.
Until we confront the fact that the collective impoverishment of the many for the selective enrichment of the few is a choice — the consequence of an explicit policy regime going back 30 years — nothing will change. But if we can muster the maturity to confront this fact, that we are here by choice, and find the courage to act on it, we might yet be able to save the country. If we do not, then we are surely lost.
To understand how we got here, we need to quickly review the economic history of the last sixty years. Then we can discuss what to do going forward.
At the end of World War II, the U.S. bestrode the world like a colossus. Its only industrial rival, Europe, had blown its brains out 30 years before, in World War I. And it did it again, in World War II, with Japan joining in. In the history of the world, there has never been such asymmetry in power between one country and all the rest.
It was U.S. capital that rebuilt its allies’ economies, through the Marshall Plan in Europe, and through military spending in Asia. U.S. factories boomed, to service not only its own vast and ravenous market, but those of all the rest of the world. All the equipment (and much of the food) to rebuild the industrial world came from America.
It was truly the Golden Age. There was enough wealth so that capital, labor, and government could all drink deeply from the seemingly inexhaustible spring of capitalism.
But by the 1960s something began to go wrong. Our allies’ economies had by then been rebuilt, and with the newest equipment and technologies. Theirs were more efficient than ours. The Volkswagens and Toyotas that would later become a tsunami began to trickle in. Same with the Sonys and Panasonics in consumer electronics. Shipbuilding, steel, machine tools, industrial electronics and other major industries began to migrate out of the U.S. and into the hands of foreign companies.
At the same time, the then-99% began to place serious claims on national resources, and to insist on being a player in major national decisions.
Johnson launched the Great Society program withthe goal of eradicating poverty. The women’s rights movement, the civil rights movement, the anti-Vietnam War movement, and the environmental movement all proved dramatically effective in redirecting national priorities and resources away from those favored by the wealthy elites and toward those of the rest of the people.
In other words, at exactly the time the profits of corporations were under assault by growing international competition, the people began to claim a greater share of society’s fruits. It couldn’t square. There was not enough output from the faltering economy to both satisfy people’s expectations of middle class affluence and economic security and capital’s demands for higher and higher returns. Something had to give.
Equally, the elites who had run the country for decades were indignant at the presumption of a mangy mob of un-bathed, pot-smoking, long-haired, bra-less, draft card-burning, tree-hugging hooligans who didn’t even have a job but wanted a seat at the table of national decision-making (sound familiar?). They were certainly never again going to allow such a scabrous cabal to decide that the country should not fight a major war (Vietnam) that was so enriching to the elites who had lied the country into it.
So the elites decided to take “their” country back.
The election of 1980 was the real watershed in modern American history. Ronald Reagan ran for president promising to cut taxes, increase military spending, and balance the budget — all at the same time. He called it “supply side economics.” His rival for the Republican nomination, George H.W. Bush, called it “voodoo economics” which, of course, it was. But people bought it and Reagan proceeded to rearrange economic power more substantially than at any time since Roosevelt enacted the New Deal.
Reagan cut marginal tax rates on the wealthy from 75% to 35%. At the same time, he dramatically increased military spending. The result was entirely predictable: with less money coming in but more going out, the government began to run massive deficits. Where Jimmy Carter’s worst deficit was $79 billion, Reagan was soon running deficits of $150 billion a year, year after year and increasing.
By 1992, the end of George H.W. Bush’s presidency, the annual deficit had reached $292 billion. In only 12 years, the supply side “revolution” had quadrupled the nation’s debt, from $1 trillion to $4 trillion. And this, in a time of peace and prosperity.
But that was always the hidden intention of supply side economics, to bind the nation to massive debts, debts from which it would never be released. Despite their sanctimonious pretenses, Republicans love debt because they are lenders. When there is more demand for debt, as when the government borrows hundred of billions of dollar a year, it commands a higher price, which is interest. This is simply supply and demand. And if you’re a lender, higher interest rates are better. This is why, even though Republicans controlled the White House for 26 of the past 40 years, they never once in any of those years produced a single balanced budget.
Clinton came to power in 1993 but proved an ambiguous leader, at least from standpoint of economics. He once described himself as “an Eisenhower Republican” which seems fair. He did raise marginal tax rates on the rich, but only from 36% to 39%. (They were at 75% under the real Eisenhower.) For this, he was pilloried as a socialist. Worse, after the fall of the Soviet Union he cut military spending as a percent of GDP to the lowest level since before Vietnam.
With lower military spending, slightly higher taxes on the rich, and a technology-driven economic boom, Clinton was able to pay down the deficits left to him by Bush I. By 1997, the government actually produced budgetary surpluses, the first since the 1960s. The consequence was a 40% fall in long term interest rates. Again, it was simply supply and demand. With less demand for borrowed money, rates fell.
This is the real reason Clinton was so relentlessly hounded by the right. It wasn’t because he was being serviced by a stalking intern, though he played into that one with astonishing recklessness. It was because he interfered with the three primary mechanisms for transferring wealth to the already-wealthy: tax cuts, massive military spending, and skyrocketing national debt.
The rest of Clinton’s economic legacy is far less positive. He pushed through NAFTA, pitting blue collar workers from the industrial Midwest against workers in Mexico making $1 an hour. He “ended welfare as we know it,” destroying an essential element of the social safety net. He enacted telecommunications “reform” that ended up as grotesque consolidation in the nation’s media, to where five companies now control more than 80% of the nation’s media.
But by far the most damaging of Clinton’s economic accomplishments was the deregulation of the finance industry. He overturned Glass-Steagall, the Depression-era law that separated commercial and investment banking. Together with his deregulation of derivatives, what Warren Buffet called “financial weapons of mass destruction,” this opened the economy to what would be the financial mad house of the first decade of the twenty-first century.
George W. Bush took office in 2001 and would serve the very wealthy in six important ways. First, he cut their taxes substantially, first in 2001 and again in 2003. Over their life, the Bush Tax Cuts for the top 1% will cost more than it would take to restore Social Security to solvency forever.
Second, he massively increased military spending with his fraudulently-justified and incompetently-prosecuted War in Iraq, and his equally-over-hyped and phony Global War on Terror.
As with Reagan, these two actions produced his third gift to his “base,” as he called the rich: massive deficits. He turned Clinton’s budget surpluses into deficits within one year. He would eventually double the national debt in only eight years, from $5.6 trillion to $12 trillion.
Fourth, he helped major industrial corporations move some seven million high paying manufacturing jobs out of the country, to low-wage countries where they could pay less for labor while putting downward pressure on American wages.
Fifth, he turned a blind eye as the financial industry carried out one of the greatest economic frauds in American history: the housing bubble.
Bush’s ideological soul-mate, Alan Greenspan, Chairman of the Federal Reserve, held interest rates at historically low levels to induce a boom in housing. This created illusory “wealth” that served to distract and pacify the working class as their jobs were being shipped overseas. He turned a blind eye to massive fraud in mortgage lending so that busboys, bartenders, gardeners, and day workers could buy homes they could never hope to afford. And he encouraged the securitzation of mortgages so that banks could offload the toxic sludge to unsuspecting buyers around the world. It was all so carefully engineered.
However, as had happened in the 1960s, something started to go wrong. Incomes began to fall as jobs were shipped overseas. The Iraq war caused oil prices to jump from $26 a barrel the day Bush took office to over $100 a barrel. It was a massive gain for the oil companies, his family’s business, but the inflationary effect coursed through everything in the economy. The busboys couldn’t make the notes on their houses, so started unloading them. But there were no “greater fools” left to buy them so prices started a downward avalanche which is still under way.
Since the height of the bubble in 2006, more than $8 trillion of housing wealth has been wiped out. Eleven million homes have been lost to foreclosure. More than one in four mortgages are underwater, with more owed on them than the home is worth. The share of home equity owned by homeowners themselves is now at the lowest level it has been since World War II. The balance has been transferred from the owners to the mortgage holders, the banks.
But the banks, in an almost psychotic orgy of greed, had leveraged their equity 30-to-1. They borrowed 30 dollars for every one dollar they held in capital. It makes for prodigious profits when prices are rising. If they go up only 3% (1/30) you double your investment! But if prices fall by 3%, your capital is wiped out. That is what actually happened. Housing prices, inflated far beyond what a rational market could bear, fell for the first time in American history. The banks went bankrupt. That was the financial collapse of late 2008.
Fortunately for the banks, Bush and his Treasury Secretary, Henry Paulson, formerly head of Goldman Sachs, were there to bestow the sixth and greatest gift on the wealthy: they bailed out the banks and their owners.
They arranged for the Treasury and the Federal Reserve to buy the banks’ toxic sludge so they wouldn’t have to take any losses on it. They paid 100 cents on the dollar for crap securities that that couldn’t fetch 20 cents on the dollar in open markets. They gave the banks trillions of dollars of loans at effectively no interest. And they allowed the banks to print trillions of dollars which they then used to inflate commodity and stock markets around the world, greatly enriching their wealthy owners.
What Bush and company didn’t do was require any givebacks from the banks. No equity. No firings. No changes in bonuses. No regulation of explosive derivatives. No restructuring of “too big to fail.” No settlements with consumers for intentionally defective mortgages. No re-investment in the economy they had plundered. And certainly, no prosecutions for any of the willful perpetrators of the Greatest Economic Collapse Since the Great Depression.
By 2009, Obama inherited an economy in free fall, for which he is perhaps owed some sympathy. But his policy responses have been inept at best, complicit at worst. He carried through with Bush’s bailout of the banks, passed phony “financial reform” which changed nothing, and studiously refused to prosecute any wrong-doing. He pushed through a tepid stimulus package where fully one third went to tax cuts for the wealthy. And he groveled to get a payroll tax cut that, in fact, does more to damage Social Security than anything any Republican president has ever managed.
In many other ways, however, he has proven to be Clinton II, or Bush III. He staffed his economic team with the very intellectual lights — Robert Rubin, Larry Summers, Tim Geithner, Ben Bernanke — who had engineered the Collapse, ensuring that capital’s right to pillage would not be qustioned. He went back on his word to fight for a public option that would have lowered the cost of health care insurance. He waved through the Bush tax cuts, not once but twice.
He never attempted anything so ambitious as a Rooseveltian jobs program. He made sure the Copenhagen climate talks failed so as to not burden American industrialists. He more than tripled Bush II’s deficits. And in his most damning assault on the economic security of more than 80 million Americans, he “put Social Security on the table” as part of his budget negotiations. With “friends” like this we should pray for enemies. At least we would know them for what they are.
Which brings us to today.
Over 56 million people are in poverty. The Census Bureau reports that half of all Americans (!) are in or near poverty. Almost 30% of those in the middle class have fallen out of it, and the rate of collapse is accelerating. A smaller share of men have jobs today than at any time since World War II. The past ten year’s wage gains have been the worst for any ten year period in the nation’s history, even worse than during the Great Depression.
The national debt that stood at $1 trillion when Reagan took office now exceeds $15 trillion. Debt as a percent of GDP is higher than it was in 1929, the year before the Great Depression. Meanwhile, corporate profits are at record highs, with corporations sitting on $2 trillion in cash, not investing it in the economy. They have $1.3 trillion parked in offshore tax havens like the Cayman Islands, out of reach of U.S. tax collectors.
Who could have imagined we could have fallen so far, and so quickly? Actually, in retrospect, it all makes sense. As wealth was steadily transferred upward and incomes were undermined, the damaging effects were masked by increased recourse to debt, both public and private. And the debt itself served to both accelerate and consolidate the transfer. But eventually the burden of payments became too much for an enfeebled workforce to carry and the whole thing came crashing down.
Any meaningful recovery will require a major investment by the federal government. The combination of lost incomes and lost consumer wealth have undercut the ability of consumers to generate demand, leaving the government as the only agent in the economy with the capacity to do the job. Clearly, private markets are not going to do it. Indeed, corporations have learned how to prosper mightily by crushing their American workers, a truly dysfunctional state of affairs that cannot stand.
The government should invest in the nation’s infrastructure which the American Society of Civil Engineers rates a “D”, down from “D+” only three years ago. This would employ potentially millions of now-unemployed workers, turning unemployment checks into tax payments to the Treasury. It would also bring the platform on which all the rest of the economy operates up to twenty-first century standards. Fortunately, the government can borrow long term at 2%, a fraction of the payback from such investments.
I’ve written elsewhere about a Manhattan Project-like investment in a green economy. Such an investment would revive employment, restore American competitiveness, help pay down the national debt, reduce our crippling dependency on middle east oil, and reduce carbon emissions into the environment. In all of these ways, it would be a win for virtually everybody in the economy, everybody in the nation, and for much of the planet.
I say “virtually” because it would not benefit those who have wrecked the economy and profited so mightily in the process: the money lenders, who would see less demand for borrowed money; the weapons makers, who would face a less hostile world; and the oil companies, whose crippling grip on the economy would be reduced. And we shouldn’t have any illusions about how hard these forces will fight to ensure that nothing changes. They will, and unless we fight back, well, nothing will change.
It is important to state once again that virtually all of the predation, all of the plunder of the last thirty years has been a policy choice, primarily enacted by Republicans, but more and more abetted by Democrats who have thrown in for a piece of the action. It’s also important to understand that nothing has changed in carrying out the agenda. Obama is as much about true “Hope” and “Change” as Bush was about “Compassionate Conservatism.” In fact, he and his wealthy masters are accelerating the looting.
Military spending is still growing at almost double digit rates after a decade of such increases. He is clearly going to put the knife into Social Security and Medicare when re-elected. He clearly has no plan, no “grand narrative” to restore the nation to prosperity. He clearly will not, can not, go after the banking industry, his biggest underwriter. And he gives all the signals of starting a war with Iran, which will make Iraq look like a silly child’s board-game gone awry.
The wealthy elites, fronted by Obama, have effectively abandoned the U.S. economy and the American people who are trapped inside. What this means is that the elections of 2012 are the last chance for the American people to reclaim their economic security, to fight off the neo-feudal servitude that is being foisted on them, and reclaim their political self-determination. As you can see from the above, most of the damage to the economy is the result of political decisions made to carry out nefarious economic ends. And they’ve worked.
We desperately need to elect a reliably progressive Congress to serve as an effective counterweight to the hopelessly corrupt, craven, and cowardly Obama and company. We need to demonstrate that it is people, not money, and not rigged voting machines, that still matter most in American elections. We need every man, woman, and child on deck with a sense of existential urgency that if we do not reclaim our country now, it will be lost forever. For it will.
In the American Revolution, Thomas Paine declared, “We have the chance to make the world anew.” He was thinking of the escape from the European world of economic feudalism, social privilege, and political autocracy. Today, we have one last chance to save that “new world” from the retrograde civilization it pulled itself out of, but whose claim on it has never been renounced.
If we can muster a Paine-like courage to fight and win this new Revolution, the Revolution to Save the Country, we shall be worthy of respect equal to that which we reserve for Paine and his fellow Founders. If we do not, we will get what we deserve. As with so much of the past thirty years, it’s our choice.
Robert Freeman
[Robert Freeman teaches history and economics at a public high school in northern California. He is the founder of One Dollar For Life, a national non-profit that helps American schools build schools in the developing world with donations of one dollar. He can be reached at robertfreeman10@yahoo.com.]
Source / Common Dreams
Fluxed Up World