Showing posts with label Capitalism. Show all posts
Showing posts with label Capitalism. Show all posts

Friday, November 1, 2013

A Little Much-Needed Truth About "Class Warfare"


The Logic of Stupid Poor People
By Tressie McMillan Cottom / October 29, 2013

We hates us some poor people. First, they insist on being poor when it is so easy to not be poor. They do things like buy expensive designer belts and $2500 luxury handbags.


To be fair, this isn’t about Eroll Louis. His is a belief held by many people, including lots of black people, poor people, formerly poor people, etc. It is, I suspect, an honest expression of incredulity. If you are poor, why do you spend money on useless status symbols like handbags and belts and clothes and shoes and televisions and cars?

One thing I’ve learned is that one person’s illogical belief is another person’s survival skill. And nothing is more logical than trying to survive.

My family is a classic black American migration family. We have rural Southern roots, moved north and almost all have returned. I grew up watching my great-grandmother, and later my grandmother and mother, use our minimal resources to help other people make ends meet. We were those good poors, the kind who live mostly within our means. We had a little luck when a male relative got extra military pay when they came home a paraplegic or used the VA to buy a Jim Walter house (pdf). If you were really blessed when a relative died with a paid up insurance policy you might be gifted a lump sum to buy the land that Jim Walters used as collateral to secure your home lease. That’s how generational wealth happens where I’m from: lose a leg, a part of your spine, die right and maybe you can lease-to-own a modular home.

We had a little of that kind of rural black wealth so we were often in a position to help folks less fortunate. But perhaps the greatest resource we had was a bit more education. We were big readers and we encouraged the girl children, especially, to go to some kind of college. Consequently, my grandmother and mother had a particular set of social resources that helped us navigate mostly white bureaucracies to our benefit. We could, as my grandfather would say, talk like white folks. We loaned that privilege out to folks a lot.

I remember my mother taking a next door neighbor down to the social service agency. The elderly woman had been denied benefits to care for the granddaughter she was raising. The woman had been denied in the genteel bureaucratic way — lots of waiting, forms, and deadlines she could not quite navigate. I watched my mother put on her best Diana Ross “Mahogany” outfit: a camel colored cape with matching slacks and knee high boots. I was miffed, as only an only child could be, about sharing my mother’s time with the neighbor girl. I must have said something about why we had to do this. Vivian fixed me with a stare as she was slipping on her pearl earrings and told me that people who can do, must do. It took half a day but something about my mother’s performance of respectable black person — her Queen’s English, her Mahogany outfit, her straight bob and pearl earrings — got done what the elderly lady next door had not been able to get done in over a year. I learned, watching my mother, that there was a price we had to pay to signal to gatekeepers that we were worthy of engaging. It meant dressing well and speaking well. It might not work. It likely wouldn't work but on the off chance that it would, you had to try. It was unfair but, as Vivian also always said, “life isn’t fair little girl.”

I internalized that lesson and I think it has worked out for me, if unevenly. A woman at Belk’s once refused to show me the Dooney and Burke purse I was interested in buying. Vivian once made a salesgirl cry after she ignored us in an empty store. I have walked away from many of hotly desired purchases, like the impractical off-white winter coat I desperately wanted, after some bigot at the counter insulted me and my mother. But, I have half a PhD and I support myself aping the white male privileged life of the mind. It’s a mixed bag. Of course, the trick is you can never know the counterfactual of your life. There is no evidence of access denied. Who knows what I was not granted for not enacting the right status behaviors or symbols at the right time for an agreeable authority? Respectability rewards are a crap-shoot but we do what we can within the limits of the constraints imposed by a complex set of structural and social interactions designed to limit access to status, wealth, and power.

I do not know how much my mother spent on her camel colored cape or knee-high boots but I know that whatever she paid it returned in hard-to-measure dividends. How do you put a price on the double-take of a clerk at the welfare office who decides you might not be like those other trifling women in the waiting room and provides an extra bit of information about completing a form that you would not have known to ask about? What is the retail value of a school principal who defers a bit more to your child because your mother’s presentation of self signals that she might unleash the bureaucratic savvy of middle class parents to advocate for her child? I don’t know the price of these critical engagements with organizations and gatekeepers relative to our poverty when I was growing up. But, I am living proof of its investment yield.

Why do poor people make stupid, illogical decisions to buy status symbols? For the same reason all but only the most wealthy buy status symbols, I suppose. We want to belong. And, not just for the psychic rewards, but belonging to one group at the right time can mean the difference between unemployment and employment, a good job as opposed to a bad job, housing or a shelter, and so on. Someone mentioned on twitter that poor people can be presentable with affordable options from Kmart. But the issue is not about being presentable. Presentable is the bare minimum of social civility. It means being clean, not smelling, wearing shirts and shoes for service and the like. Presentable as a sufficient condition for gainful, dignified work or successful social interactions is a privilege. It’s the aging white hippie who can cut the ponytail of his youthful rebellion and walk into senior management while aging black panthers can never completely outrun the effects of stigmatization against which they were courting a revolution. Presentable is relative and, like life, it ain’t fair.

In contrast, “acceptable” is about gaining access to a limited set of rewards granted upon group membership. I cannot know exactly how often my presentation of acceptable has helped me but I have enough feedback to know it is not inconsequential. One manager at the apartment complex where I worked while in college told me, repeatedly, that she knew I was “Okay” because my little Nissan was clean. That I had worn a Jones of New York suit to the interview really sealed the deal. She could call the suit by name because she asked me about the label in the interview. Another hiring manager at my first professional job looked me up and down in the waiting room, cataloging my outfit, and later told me that she had decided I was too classy to be on the call center floor. I was hired as a trainer instead. The difference meant no shift work, greater prestige, better pay and a baseline salary for all my future employment.

I have about a half dozen other stories like this. What is remarkable is not that this happened. There is empirical evidence that women and people of color are judged by appearances differently and more harshly than are white men. What is remarkable is that these gatekeepers told me the story. They wanted me to know how I had properly signaled that I was not a typical black or a typical woman, two identities that in combination are almost always conflated with being poor.

I sat in on an interview for a new administrative assistant once. My regional vice president was doing the hiring. A long line of mostly black and brown women applied because we were a cosmetology school. Trade schools at the margins of skilled labor in a gendered field are necessarily classed and raced. I found one candidate particularly charming. She was trying to get out of a salon because 10 hours on her feet cutting hair would average out to an hourly rate below minimum wage. A desk job with 40 set hours and medical benefits represented mobility for her. When she left my VP turned to me and said, “did you see that tank top she had on under her blouse?! OMG, you wear a silk shell, not a tank top!” Both of the women were black.

The VP had constructed her job as senior management. She drove a brand new BMW because she, “should treat herself” and liked to tell us that ours was an image business. A girl wearing a cotton tank top as a shell was incompatible with BMW-driving VPs in the image business. Gatekeeping is a complex job of managing boundaries that do not just define others but that also define ourselves. Status symbols — silk shells, designer shoes, luxury handbags — become keys to unlock these gates. If I need a job that will save my lower back and move my baby from medicaid to an HMO, how much should I spend signaling to people like my former VP that I will not compromise her status by opening the door to me? That candidate maybe could not afford a proper shell. I will never know. But I do know that had she gone hungry for two days to pay for it or missed wages for a trip to the store to buy it, she may have been rewarded a job that could have lifted her above minimum wage. Shells aren’t designer handbags, perhaps. But a cosmetology school in a strip mall isn’t a job at Bank of America, either.

At the heart of these incredulous statements about the poor decisions poor people make is a belief that we would never be like them. We would know better. We would know to save our money, eschew status symbols, cut coupons, practice puritanical sacrifice to amass a million dollars. There is a regular news story of a lunch lady who, unbeknownst to all who knew her, died rich and leaves it all to a cat or a charity or some such. Books about the modest lives of the rich like to tell us how they drive Buicks instead of BMWs. What we forget, if we ever know, is that what we know now about status and wealth creation and sacrifice are predicated on who we are, i.e. not poor. If you change the conditions of your not-poor status, you change everything you know as a result of being a not-poor. You have no idea what you would do if you were poor until you are poor. And not intermittently poor or formerly not-poor, but born poor, expected to be poor and treated by bureaucracies, gatekeepers and well-meaning respectability authorities as inherently poor. Then, and only then, will you understand the relative value of a ridiculous status symbol to someone who intuits that they cannot afford to not have it.

Source / tressiemc

Thanks to Alan Brodrick / Fluxed Up World

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Thursday, August 8, 2013

Then and Now



Source / The Amendment Gazette

Fluxed Up World

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Friday, August 2, 2013

The Ghastly Cost of Fossil Fuel Pipeline Transport

Please watch this full-screen. This video shows the number of incidents involving fossil fuel pipelines since 1986: 7,978 incidents, 512 deaths, 2,360 injuries, and a total cost of $6.838 billion in property damage. And that says nothing of the "externalized" climate effects that threaten humanity and other costs that the industry refuses to acknowledge.



Source / Center for Biological Diversity

Fluxed Up World

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Wednesday, June 12, 2013

Don't Believe Monsanto's Myth-Making

Marching against Monsanto in San Francisco. Photo: Steve Rhodes.

Hey, Non-GMO Activist: Monsanto's CEO Thinks You're an Elitist
By Anna Lappé / June 11, 2013

On May 25, 2013, tens of thousands of people in 36 countries participated in a global "March Against Monsanto." But according to Monsanto CEO Hugh Grant, those who protest against agricultural genetic engineering -- including the farmers, students, academics, and more who turned out in March -- are "elitists," fomenting distrust of technology that could save the lives of millions of hungry people.

For years, industry leaders like Monsanto have been pushing this myth. At a biotechnology industry trade conference I attended in 2005, one participant even claimed that those fighting against GMOs "should be tried for crimes against humanity." A charge, I tend to think, usually reserved for serious attacks on human rights.

This particular mythmaking is a powerful PR tactic. Who among us wants to feel that our attitude toward a technology could be causing hunger here or abroad? Or, worse, that our opposition to Monsanto could be putting us among the ranks of Yugoslavia's Miloševi? or Guatemala's Rios Montt? Not me.

In his recent interview with Bloomberg News, Grant was hyping this myth again, claiming challengers of genetically engineered foods, "are guilty of elitism." (An interesting choice of words for someone who pulled in $12.84 million last year -- and averaged $26.3 million in annual earnings over the past six years, according to Forbes.)

Grant says critics of GMOs, "fail to consider the needs of the rest of the world."

Is he right?

We have nearly 20 years of commercialized GMO use under our belt. We can learn a lot from this global experiment. What we know is that not only do GMOs fail to address the roots of hunger, but the technology can also actually worsen hunger as it maintains and, in some cases, worsens, farmers' dependency on costly seeds, chemicals, and fertilizer -- all at volatile and rising prices.

Today nearly 870 million people on the planet suffer from extreme, long-term undernourishment, according to the United Nations, and nearly as many are overfed, consuming too many of the wrong calories. These twin crises have many root causes, including poverty, inequality, and a lack of choice over how food is grown, where it's grown, and who has access to it -- a deficit of democracy. A technology like genetic engineering, which has been developed and is controlled by a handful of companies, does nothing to transform this dynamic. Indeed, the technology serves to further concentrate power over our food system: An estimated 90 percent of U.S.-grown soybeans and 80 percent of corn and cotton crops are grown from Monsanto's seeds.

While biotech proponents love to talk about the promise of drought-resistant, nitrogen-efficient, and nutritionally enhanced varieties, to date, commercialized genetically engineered crop varieties have been mostly limited to two types: those developed to resist a proprietary herbicide, and those engineered to produce a specific insecticide. This comes as no surprise, since the technology creation is led by chemical companies, like Monsanto, Dupont, and Dow.

Genetic engineering techniques have also been commercialized for only a handful of crops: mainly corn, soy, canola, cotton, and sugar beets. These are not foods to nourish the world. They're commodities that mostly end up in the gut of a cow, the tank of a car, or the ingredients list of processed foods.

GMOs are also only being grown in a handful of countries. Ninety-one percent of GMOs worldwide are planted in just five countries: the United States, Brazil, Argentina, Canada, and India. In most of the other 23 countries with commercialized GMOs, the crops are growing on a negligible number of acres.

Moreover, the technology does not help the lion's share of those who are hungry: small-scale farmers in the developing world. Why not? Because adopting GMOs makes cash-poor farmers dependent on buying seeds, fertilizer, and chemicals that provide uneven yields, foster weeds resistant to pesticides, undermine soil health, and reduce biodiversity. Plus, planting monocrops -- whether the seeds are heirloom varieties, hybrids, or genetically engineered -- means smallholders have all their eggs in one basket, leaving them vulnerable to catastrophic weather events or global price swings.

Research is showing that "agroecological" methods -- the ones that use on-farm soil fertility, natural methods for pest and weed control, and locally adapted crop varieties--can outperform GMOs, especially during drought years. These methods also improve the nutritional value of crops, benefit biodiversity and soil health, and reduce on-farm greenhouse gas emissions. Additionally, these techniques can increase farmers' incomes (in large part because their input costs go way down), freeing them from debt and dependency. In fact, small-scale farmers around the world adopting and spreading agroecological practices are getting excellent results and, not coincidentally, are increasingly vocal critics of genetic engineering.

I wonder what the small-scale farmers I've interviewed around the world who oppose GMOs -- from the foothills of the Himalayas to the plains of Brazil -- would think of Grant's comments? They might just find it odd that they'd be considered "elitists."

[Anna is the author of Diet for a Hot Planet: The Climate Crisis at the End of Your Fork and co-author of Grub: Ideas for an Urban Organic Kitchen and Hope’s Edge. She is a founding principal of the Small Planet Institute.]

Source / Common Dreams

Fluxed Up World

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Saturday, April 13, 2013

Exxon Really DOES Hate Your Children



Source / Indian Country

Fluxed Up World

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Saturday, March 9, 2013

We Are No Longer Homo Sapiens: We're Cyborgs

Valerie Belin/Edwynn Houk Gallery/New York.

Mental Breakdown of a Nation: Panting for Breath on a Virtual Shore
By Stefanie Krasnow / February 28, 2013

We are no longer homo sapiens: we're cyborgs.

Each day, our porous skin opens less and less to fresh air, sunlight, the touch of others, the smell of pine, rain, compost, and manure . . . and instead we find ourselves hunched over machines in the standard posture of reverence, bowing our heads to the humming and warm computer-pets that rest on our laps or in our palms.

It took millions of years of evolution for life on earth to move out of the oceans onto land, where our phylogenetic ancestors gasped for their first breaths on a pebbled beach. Now, some 590,000,000 years later, we find ourselves panting for air on a virtual shore.

We're embarking on the second greatest migration in the history of life of earth, from the physical world into virtuality. In the span of just one generation, we've been completely wooed over by the entirely-cerebral and entirely-virtual adventures accessed when our fingertips apply light pressure to a plastic "mouse."

Today, teenagers in America spend seven hours on a screen each day, 11 if you include multitasking hours: this is more time than human beings spend doing anything else, including sleeping. Teenage girls send over 3,700 texts a month, even 12 year old girls have over 500 Facebook friends, 250 of which are total strangers to them. The combination of online sexual coercion in chat rooms and cyber-bullying drives a young girl, Amanda Todd, to suicide. And just think, it's only been thirty years – even less for most – since the world wide web came into our lives.

Initially, the internet was created by and for the military. For several decades after that it was used only in emergencies, and later on by computer engineers, IT professionals or for the back-end of certain businesses and institutions. But then came the commercialization of the internet in 1995, the invention of search engines in the mid-late 90s, Google in 1998, BlackBerry in 2001, Facebook in 2004, and the first iPhone in 2007. These events have all occurred in less than twenty years. The most current trend, the personal computer revolution – where everyone, everywhere, is online, nearly all the time – is very new, less than five years old. It is this latest trend which has impacted our lives most dramatically, and in a remarkably unprecedented way if you consider the vast timeline of our development on planet Earth. We are no longer homo sapiens: we're cyborgs.

Our common understanding of cyborgs are hollywood clichés: rogue robots with human skin pulled taut over sleek metal wiring, and ON/OFF buttons tucked away in thigh or knee crevasses. But we don't have to wait until we embed chips beneath our skin, nor till we get Google Goggles as contact lens glued to our eyes, to earn our status as cyborgian. As Donna Haraway famously suggests, we are entirely cyborgs just as we appear now – with smart-phones tucked snugly in our pockets for every minute of every waking hour, held as close as possible to our skin in a hard-to-access area, much like a sacred amulet was once worn around one's neck in a burlap pouch.

In her Cyborg Manifesto, Haraway collapses the boundaries between human/animal, and human/machine, suggesting that there is as much artifice as there is "nature" in human nature. Our cyborgian condition was not begot by some sinister mutation, rather, we are as vitally and ineradicably entwined with machines as we are with the bacteria in our intestines. As Marshall McLuhan said: "we create machines in our own image and they, in turn, recreate us in theirs."

Years before the techno-prolifia we live in today, McLuhan wrote an eerie forecast that has perhaps now come true: "Man would become...as it were, the sex organs of the machine world, as the bee of the plant world, enabling it to fecundate and to evolve ever new forms. The machine world reciprocates man's love by expediting his wishes and desires, namely, in providing him with wealth."

The bond between man and machine indeed gleams of eroticism. Technically speaking though, this relationship is an endosymbiotic one (a reciprocal relationship where one of the beings lives within the body of the other, merging with it). But is it us who live inside the machine, as it's sex organs, or does the machine live inside us? Contrary to McLuhan, Freud believed the machine lives on us, as an appendage that has enabled us to become God-like. We're omnipotent, since we've overcome nature where we can; and thanks to Google, we feel omniscient. In 1929, Freud wrote in Civilization and its Discontents: Man has, as it were, become a kind of prosthetic God. When he puts on all his auxiliary organs he is truly magnificent; but those organs […] still give him much trouble at times. Future ages will bring with them new and possibly unimaginably great advances in this field of civilization and will increase man's likeness to God still more. But in the interests of our present investigation, we will not forget that present-day man does not feel happy in his God-like character.

Generations before tamagochi, Facebook and iPads, Freud sensed that there was something primordial being forsaken as man became more and more civilized, and he warned that the prevalent disavowal of our animality would have costs – psychically, physically, socially, erotically.

Today's most popular gadgets – those palm-sized avatars of hyper-activity and hyper-connectivity – are precisely so seductive because they compensate for the physical, social and erotic loses that technological advances bring. Every ding, tweet, ring, and vibration promises a social, sexual, or professional opportunity. And in less than a decade, our brains have been reprogrammed to respond to these dings, tweets, rings and vibrates with rushes of dopamine, adrenaline and other stimulating neurotransmitters, such that our brains on smart-phones look, on an MRI scan, identical to those of an addict on drugs. The internet's effects on the brain is the subject of Nicholas Carr's bestseller, The Shallows: What the internet is doing to our brains, which was nominated for a Pulitzer Price. The latest studies in neuroscience confirm Carr's suspicions that the internet is a detriment to cognition, concentration, contemplation and psychological health. These studies are finding that what's most addictive about the internet is not the technology itself, nor the content, but these jolts of energy we get from habitual use of internet applications, which foster and promote compulsive behaviour.

Peter Whybrow, the director of the Semel Institute for Neuroscience and Human Behavior at UCLA, explains that “the computer is like electronic cocaine,” instigating cycles of mania followed by periods of depression. “There’s just something about the medium that’s addictive,” adds Elias Aboujaoude, a psychiatrist who manages the Obsessive Compulsive Disorder Clinic at Stanford Medical School, “I’ve seen plenty of patients who have no history of addictive behavior – or substance abuse of any kind – become addicted to the internet and these other technologies.” Scientists at Oxford University warn that children who spend too much time on social networks sites could suffer from personality and brain disorders. Research published in China discovered links between internet addiction and “structural abnormalities in gray matter,” that is, a fifteen percent shrinkage in the area of the brain that controls speech, memory, motor control, emotion, sensory, and other information. This shrinkage is cumulative: the more time online, the more grey matter shrivels.

From follow-up studies, we learn that it doesn't take even many hours online for these changes to occur. Gary Small, head of UCLA’s Memory and Aging Research Center, documented that even just five hours of internet use, for web-virgins, substantially rewired the prefrontal cortex of the brain. So we can infer what happens as we spend more and more hours online. The amount of time one spends online is directly correlated to depression, obesity, ADD, ADHD, OCD, and anxiety. New studies are showing that internet and social media use contribute to or instigate even bigger mental breakdowns: split-personality disorder, delusional and paranoid thought, suicidal thinking, even psychosis . . . psychosis, that is defined as, a loss of what is real.

This research must not be misinterpreted to suggest that those who've become addicted to Facebook, smart-phones, gaming, chatting, or the internet in general are entirely to be blamed. Is this really their own issue, or is it society's ill? Most people don't want to be online all the time. But its a necessity of today's urban, capitalist society that employees keep their Blackberry's always-on and within-reach even during holidays and private moments. Many workplaces now require employees to spend at least eight hours a day sitting at a desk staring at a screen. After-hours, the compulsion seeded by the habits of the work day to surf the web, refresh e-mail, tweet, update your status, and feel plugged in at all times continues late into the night. How many hours of the day are we not feeding and pruning our virtual alter-egos ? How many hours of our life are we not busying ourselves, hunting around aimlessly on virtual shores? What ways of being, beliefs, and values come along with this new digi-virtual media realm we are all being sucked into?

We must never lose sight that the internet is a solipsistic universe – everything you take in is stuff made by and for humans. No animals, no trees, no lichen, no insects, no fungi, none of those beings who help us breathe, none of the creatures who help us play are here. We are just stewing in our own juices. For those who do worry over what's happening to Nature, there are online portals which exist to compensate for this feeling of lack: 360-degree landscapes, from Peru to the Arctic, all online to explore, digital animal daemons who'll accompany you on an online adventure. These online animal avatars are designed (so goes the logic of the Telus ads) to assuage your anxiety, to help you feel more "natural" and at ease as you muck around in an entirely digi-realm. The Youtube showcase of a starry sky, the pictures of dogs, the representations of a representation of the real thing out there – offline – this is all wonderful, this is all we need.

The internet is like humanity's neural network. It mirrors the brain with its networks, coding systems, information storage, and with it's highly abstract and purely conceptual language. We feel proud as we look in this mirror. As we surf the net, we feel a deep sense of awe over our human ingenuity. Browsing has become not just a vital part of contemporary lifestyle, but a new modality of human being. Accordingly, the values and meaning with which we imbue life in this world are becoming more and more narrowly anthropocentric, and more and more cerebral, abstract, detached, and disembodied.

A word of advice: don't get too attached. We're still in a honey-moon phase with this new technology. The wonders afforded by the internet are still so dazzling to us that we can't really question it, or take into account that this invention may just be the leading cause of the mental breakdown of our species. Some 400,000 years ago, Homo Erectus discovered how to control fire. Humanity's first technology. As we learned with fire, we must work to master our inventions in order to augment their potential, else they will go out of control, and we get a nuclear burn.

The internet-enthusiasts who are no doubt severely agitated by this idea, who are assuming the author is a primitivistic luddite overlooking all the good brought into the world by the world wide web, consider this: for 100 years we celebrated the automobile as the ultimate achievement of our species' invention! What extraordinary feats we were suddenly capable of in locomotion and adventure! Not til generations later did we realize that cars were a leading villain in the destruction of the planet. What will we discover in 100 years about the internet, smart-phones and other harbingers of virtual life?

Already, our enthusiasm about cyberspace is turning against us, for all the information about ourselves which we volunteer to share online, and the data-trails we leave in our wake as we navigate, are being used against us in the war that's underway against our civil liberties. The obliteration of privacy comes with the appropriation of the internet by Big Daddy as the ultimate surveillance tool. And the radical potential we've seen in social media is being stolen from us: all the insidiousness of advertising is all the more in your face on the internet, more so than it ever was on TV. Sheryl Sandberg, Facebook's chief operating officer, pitched Facebook as the ultimate advertising platform to Madison Avenue businesses in late 2012. She assured the industry people that Facebook's number one prerogative is to serve $ucce$$ for those that advertise on it.

The internet, to some, is a crystallization of, and homage to, the nearly-miraculous things human beings can do. We hang on to our god-like abilities attained via technology because they make us feel invulnerable. Though, a cosmic perspective will always put our precarity back in the spotlight. Amidst these ongoing solar storms, it's possible that one of these gigantic solar flares could hit the planet, and all the electronics and gadgets would be wiped out in an instant . . .

Source / AdBusters

Thanks to Deva Wood / Fluxed Up World

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Friday, October 26, 2012

The 1%: As Much As They Already Have, and They Still Want More


Bernie Sanders Calls Out CEO Tax Dodgers over Deficit, Hypocrisy

'The last thing we need to do is listen to these deficit increasing CEOs'

By Common Dreams staff / October 25, 2012

Senator Bernie Sanders called out a group of the top US CEOs Thursday in a new report revealing top corporate tax dodgers in the US and urged those dodgers to 'look in the mirror' for the causes of America's ballooning deficit. The report followed a joint statement issued Thursday morning by the top 80 US CEOs, pleading to Congress for a deficit reduction plan that would include cuts to Social Security, Medicare, and Medicaid, and a decrease in taxes "for the top 2%."

The report Top Corporate Tax Dodgers (pdf) outlines individual CEO income and tax information, exploring the vast amounts of tax avoidance from the members of the group who today urged congress to avoid the 'fiscal cliff' budget, through their telling new plan.

Sanders reveals how many of the CEOs who issued the statement have evaded at least $34.5 billion in taxes through more than 600 subsidiaries in the Cayman Islands and other offshore tax havens since 2008. Roughly a dozen of their companies did not pay federal income taxes at all in recent years and some received an additional $6.4 billion in tax refunds from the IRS since 2008. Many of the companies were among those who received the $2.5 trillion from the Federal Reserve following the banking industry induced financial crisis.

In addition, many of those companies are responsible for vast amounts of unemployment, due to the practice of employment outsourcing to foreign countries.

All of these actions, Sanders argues, are direct causes of the American deficit. The hypocrisy in the CEOs' "lecture to the American people" is stifling.

Sanders elaborated today:

There really is no shame. The Wall Street leaders whose recklessness and illegal behavior caused this terrible recession are now lecturing the American people on the need for courage to deal with the nation’s finances and deficit crisis. Before telling us why we should cut Social Security, Medicare and other vitally important programs, these CEOs might want to take a hard look at their responsibility for causing the deficit and this terrible recession. Our Wall Street friends might also want to show some courage of their own by suggesting that the wealthiest people in this country, like them, start paying their fair share of taxes. They might work to end the outrageous corporate loopholes, tax havens and outsourcing provisions that their lobbyists have littered throughout the tax code – contributing greatly to our deficit.
Source / Common Dreams

Fluxed Up World

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Wednesday, July 18, 2012

The New Company Store

The New Company Store: The Final Step in the Corporate Takeover of America
By John Atcheson / July 18, 2012

Well, here we are, slouching toward another national garage sale in which corporations bid on and buy candidates the way futures traders bid on commodities – or as our founders used to call it: an election.

As we go to the polls, it might be wise to remember the song Sixteen Tons. Here’s a few lines to refresh your memory:
Another Day Older and Deeper in Debt; and

St. Peter don’t you call me ‘cause I can’t come. I owe my soul to the Company Store.
The original version of the song was written by an ex-coal miner named George Davis and recorded on his album, When Kentucky Had No Union Men.

It is a song about the truck system, and debt bondage. Under this economic model, workers lived in houses owned by the company, shopped in stores owned by the company, and got paid in scrip minted by the company. And no matter how hard they worked, they remained indebted to the company.

The truck system survived in the US until the early 20th Century. This kind of abuse existed because government allowed it to. Then as now, wealth was highly concentrated and government was in the pocket of the plutocrats.

It came to an end with the passage of The National Industrial Recovery Act in 1933.

Since then, the US government and labor moved together to level the playing field for workers. The result was a steady increase in prosperity shared by all Americans.

That is, until about thirty years ago, when Reagan launched what has been a sustained assault on government.

Thanks to thirty years of Republican policies and Democratic complicity, we’re in the process of reopening the company store, only as with all things 21st Century, it’s a national chain.

Today, we shop with credit cards owned by “the company,” live in houses financed by “the company” – often owing more than the value of the home – and get our news and information from sources controlled by "the company." In short, the company store is back in business.

While Republicans and Tea partiers are all aflutter over government debt, Americans owe some $11.4 trillion in consumer debt. Talk about indentured. Seventy five per cent of us are held hostage to debt.

This spring student loan debt passed $1 trillion, and the average student now owes $25,000 upon graduating, And Congress passed a law making it almost impossible for students to escape this debt through bankruptcy. Right now, it’s far easier for a corporation to default on hundreds of millions of dollars in retirement and health benefits than it is for a student to escape a few thousand in student loan debt.

Congratulations, Grad, and welcome to the company store. Oh, but you corporations and fat cats? No worries. It’s business as usual – your McMansion is protected; you can still screw your employees with impunity.

So how did this happen? How did we once again become enslaved to a system which does not represent our interests; a system which benefits the 1% at our expense?

Well, not surprisingly, corporations and plutocrats used the tools of marketing to conduct a silent takeover of the country, imposing a tyranny far more severe than the imaginary government tyranny Tea-Partiers rail against.

They systematically “branded” the forces that were capable of constraining them while rebranding the very things that worked to enslave so many of us in times past.

Using repetition, metaphors and other figures of speech that form the basis of advertising, corporations and their conservative cronies – the real modern day Madmen – made people believe up was down and right was left. And because they were unopposed by the corporate owned media and the Democratic Party, they succeeded.

Government was branded as the problem, not the solution.

The private sector got branded as the solution, not the problem.

The same private sector that set up the company stores in the 18th and 19th Centuries until the government and unions put a stop to it.

“Liberal” became an epithet – something politicians ran screaming from, and something the people identified as evil, ineffective, elitist … even though, on an issue-by-issue basis, most Americans hold progressive views.

Socialism is now equivalent to Satan worship, and anything but wild, unconstrained capitalism has been branded as socialism – or gasp – even communism. Thus, regulations preventing the Company Store, or the rape of the Earth are seen as infringements on our freedom even though they apply mostly to corporate abuse. Plutocrats must get together at their secret meetings and howl with laughter at the rubes who screw themselves because they’re worried about their freedom, which -- thanks to the evisceration of government -- is now essentially the freedom to be exploited.

Exhibit A? “Keep your government hands off my Medicare.” Or take this gem: “Don’t steal from Medicare to Support Socialized Medicine.”

The result of this massive con? Income mobility in the United States has all but stalled, especially in States with Republican governors. Income disparity, on the other hand has exploded and the top 10% of Americans now control 75% of the wealth. The United States now ranks behind such luminary examples of shared prosperity as Cameroon and Iraq, according to the CIA.

So now, as corporations impose an economic tyranny not seen since the 19th and early 20th Century, many Americans are chasing ghosts ginned up by the corporations and their conservative political madmen.

Welcome to the New Company Store, now opening at a location near you.

[John Atcheson is author of the novel, A Being Darkly Wise, an eco-thriller and Book One of a Trilogy centered on global warming. His writing has appeared in The New York Times, the Washington Post, the Baltimore Sun, the San Jose Mercury News and other major newspapers. Atcheson’s book reviews are featured on Climateprogess.org.]

Source / Common Dreams

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Sunday, May 20, 2012

Let's Make Money and Credit a Public Utility


The Revolution Will Not Be Televised: Quiet Drama in Philadelphia
By Ellen Brown May 20, 2012

“You will not be able to plug in, turn on and cop out.
You will not be able to skip out for beer during commercials,
Because the revolution will not be televised. . . .
The revolution will be live.”


--From the 1970 hit song by Gil Scott-Heron
Last week, the city of Philadelphia's school system announced that it expects to close 40 public schools next year, and 64 schools by 2017. The school district expects to lose 40% of its current enrollment, and thousands of experienced, qualified teachers.

But corporate media in other cities made no mention of these massive school closings -- nor of those in Chicago, Atlanta, or New York City. Even in the Philadelphia media, the voices of the parents, students and teachers who will suffer were omitted from most accounts.

It’s all about balancing the budgets of cities that have lost revenues from the economic downturn. Supposedly, there is simply no money for the luxury of providing an education for the people.

Where will those children find an education? Where will the teachers find work? Almost certainly in an explosion of private sector “charter schools,” where the quality of education -- from the curriculum to books to the food served at lunch -- will be sacrificed to the lowest bidder, and teachers’ salaries and benefits will be sacrificed to the profits of the new private owners, who will also eat up many millions of dollars of taxpayer subsidies.

Why does there always seem to be enough money for military expansion, prisons, bank bailouts and tax cuts for the wealthy, but not enough for education—or for jobs, housing, healthcare, or old age pensions? These are not “welfare” but are part of the social contract for which we pay taxes and make social security payments.

In an article reprinted on Truthout on May 10th titled “Why Isn't Closing 40 Philadelphia Public Schools National News?,” Bruce Dixon posed this answer:
The city has a lot of poor and black children. Our ruling classes don't want to invest in educating these young people, preferring instead to track into lifetimes of insecure, low-wage labor and/or prison. Our elites don't need a populace educated in critical thinking. So low-cost holding tanks that deliver standardized lessons and tests, via computer if possible, operated by profit-making "educational entrepreneurs" are the way to go.
“Lifetimes of insecure, low-wage labor or prison”—this is very close to the “indentured servitude” that was abolished along with slavery by the 13th Amendment to the Constitution, ratified in 1865. The freed slaves are being recaptured by debt, beginning with the debt of school loans, followed by credit card debt, mortgage debt, and healthcare costs.

As was cynically observed in a document called the Hazard Circular, allegedly circulated by British banking interests among their American banking counterparts in July 1862:
[S]lavery is but the owning of labor and carries with it the care of the laborers, while the European plan, led by England, is that capital shall control labor by controlling wages. This can be done by controlling the money. The great debt that capitalists will see to it is made out of the war, must be used as a means to control the volume of money. . . . It will not do to allow the greenback, as it is called, to circulate as money any length of time, as we cannot control that. [Quoted in Charles Lindburgh, Banking and Currency and the Money Trust (Washington D.C.: National Capital Press, 1913), page 102.]
The quotation may be apocryphal, but it graphically conveys the fate of our burgeoning indentured class. It also suggests the way out: we must recapture the control of our money and banking systems, including the issuance of debt-free money (“greenbacks”) by the government.

Meanwhile, in Other Unreported News . . .

That alternative vision was put before a conference in Philadelphia in late April that drew delegates from all over the United States. The theme of the first Public Banking in America conference, held at the Quaker Friends Center on April 28-29th, was that to fix the economy, we first need to take back the “money power”—the power to create currency and credit.

Led by keynote speakers Gar Alperovitz and Hazel Henderson and highlighted in an electric speech by twelve-year-old Victoria Grant, the conference was all about solutions. As summarized by OpEdNews editor Josh Mitteldorf:
There were two visions expressed . . . . The first is the very practical idea that states and cities around America could be rescued from insolvency if they had their own banks, instead of relying on commercial banks to borrow money through bonds. Tax-exempt bond issues supply money to states and municipal governments typically at 5 or 6% interest, while banks these days are able to borrow from the Fed at 1/4% per year.

The second vision is . . . the radically-subversive idea that the system we have for introducing money into the economy is a boon for the banks, but perhaps a major drag on our economy. Perhaps a simple, direct system of money creation by the Treasury Dept instead of the Fed would put an end to cycles of recession, and create a foundation for long-term prosperity.

Banking is a huge leech on our economy. 40% of every dollar we spend on goods and services -- 40% of all that we create and all we consume -- is siphoned off the top as bank interest in one form or another. (Calculations of Margrit Kennedy) The US Government is in the absurd position of paying interest to a private bank for every dollar that is put into circulation. The Federal Reserve system has privatized the power to create money, which, according to the Constitution, ought to belong to Congress alone. Presently, interest on the national debt costs the Federal government $500 billion in 2011, and (because of structural deficit spending) it is the fastest-growing portion of the Federal budget.
Five hundred billion dollars could be saved annually just by refinancing the federal debt through our own central bank, interest-free. This is not an off-the-wall idea but has actually been done, very successfully. Among other instances, it was done in Canada from 1939 to 1974, as was detailed by the youngest and oldest speakers at the conference, 12-year-old Victoria Grant and former defense minister Paul Hellyer, founder of the Canadian Action Party. Another Canadian at the conference, Toronto Councillor Kristyn Wong-Tam, has proposed that the Toronto city council could improve its finances by forming its own bank.

The direct solution to the economic crisis, urged by veteran money reformer Bill Still, would be for the federal government to simply create the money it needs, as the American colonists did by printing paper scrip and Abraham Lincoln did by printing greenbacks.

But cities and states don’t need to wait for a deadlocked federal Congress to act. As Wong-Tam has proposed for Toronto, they can divest their public revenues from the too-big-to-fail banks and put them in their own publicly-owned banks. These banks could then do what all banks do: leverage capital, backed by deposits, into money in the form of bank credit.

This newly-created bank money would then be available for the use of the local government interest-free (since the government would own the bank and would get the interest back as dividends). Among other possibilities, the money could be used to restore the schools. This would not be an expenditure but an investment, as illustrated by the G.I. Bill, which provided education and low-interest loans for returning servicemen after World War II. Economists have determined that for every 1944 dollar invested in the G.I. Bill, the country received approximately $7 in return, through increased economic productivity, consumer spending, and tax revenues.

Legislation for public banks has now been introduced in 18 U.S. states, on the model of the highly successful Bank of North Dakota (BND). Elaborated on at the Public Banking conference by Ed Sather and Rozanne Junker, the BND is currently the country’s only state-owned bank and has been a major factor in allowing the state to escape the recent credit crisis. North Dakota is the only state to boast a significant budget surplus every year since the economic downturn of 2008.

Ellen Brown noted that 40% of banks globally are also publicly-owned. These are largely in the BRIC countries (Brazil, Russia, India, and China), which also escaped the credit crisis, largely because their public banks did not rely on derivatives and, unlike private banks, lent counter-cyclically to cushion their economies from the downturn.

Conference speaker Samuel Giles proposed that even public universities could set up their own banks, which could then leverage university monies for the university’s own use, rather than giving those assets away to Wall Street to be speculated with and lent back at much higher interest rates.

Innovative Solutions for Pennsylvania

Speakers Michael Sauvante and Mike Krauss noted that efforts are underway in several Pennsylvania and Ohio municipalities to create public banks. One possibility is for public banks to take an aggressive role in ending the foreclosure crisis by acquiring abandoned and foreclosed homes by eminent domain. These homes could be added to the asset base of the bank, which could extend credit to restore them and then sell or rent them at reasonable rates.

Krauss noted that Philadelphia already has a strong effort underway to create a “land bank”—a bank to acquire, rehabilitate and create productive uses for the city's more than 40,000 vacant properties—and legislation (HB 1682) has been introduced in the state legislature to enable this effort. But the land bank proposed is not designed to function as a depository bank that leverages funds into credit. Rather, it would simply work with appropriated funds or bond revenue. This is a positive step toward addressing a real need, but it could be enhanced by turning the land bank into a public bank—a chartered bank having the power to create money as credit on its books.

The efforts for developing public banks in Pennsylvania are being led by the Pennsylvania Project, which was a co-sponsor of the Philadelphia conference and is supported in its work by the Public Banking Institute and the Center for State Innovation. The Pennsylvania Project is creating partnerships with other Pennsylvania public policy organizations to introduce legislation for a state Bank of Pennsylvania in 2013, after elections are held and a strong foundation of support has been laid.

Revolution Without Bloodshed or War

We live under a tyranny today that is just as intolerable and unjust as that in 1776, but violent revolution is no longer an option. Our oppressors own the military and the media, and their FEMA camps are waiting for us.

If change is to come, it must be peaceful and legal, beginning with a revolution in the minds and hearts of the people. The message of the Public Banking in America Conference was that we can throw off the yoke of the financial elite by making money and credit a public utility; and the most feasible place to start is at the local level, with publicly-owned banks.

For videos of some of the speakers, click here. More to come. The Victoria Grant video has gone viral, approaching half a million hits, including copies.

[Ellen Brown developed her research skills as an attorney practicing civil litigation in Los Angeles. In Web of Debt, her latest of eleven books, she turns those skills to an analysis of the Federal Reserve and “the money trust.” She shows how this private cartel has usurped the power to create money from the people themselves, and how we the people can get it back. She is president of the Public Banking Institute, and has websites at WebofDebt.com and EllenBrown.com.]

Source / Common Dreams

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Sunday, April 22, 2012

Ever Wonder How the US Competes with Asia to Manufacture Office Furniture and Appliances?

Treadmill at Preston prison, Lancashire, 1905. The treadmill was a form of hard labor, often used to grind flour.

Locking Down an American Workforce: Prison Labor as the Past -- and Future -- of American “Free-Market” Capitalism
By Steve Fraser and Joshua B. Freeman / April 21, 2012

Sweatshop labor is back with a vengeance. It can be found across broad stretches of the American economy and around the world. Penitentiaries have become a niche market for such work. The privatization of prisons in recent years has meant the creation of a small army of workers too coerced and right-less to complain.

Prisoners, whose ranks increasingly consist of those for whom the legitimate economy has found no use, now make up a virtual brigade within the reserve army of the unemployed whose ranks have ballooned along with the U.S. incarceration rate. The Corrections Corporation of America and G4S (formerly Wackenhut), two prison privatizers, sell inmate labor at subminimum wages to Fortune 500 corporations like Chevron, Bank of America, AT&T, and IBM.

These companies can, in most states, lease factories in prisons or prisoners to work on the outside. All told, nearly a million prisoners are now making office furniture, working in call centers, fabricating body armor, taking hotel reservations, working in slaughterhouses, or manufacturing textiles, shoes, and clothing, while getting paid somewhere between 93 cents and $4.73 per day.

Rarely can you find workers so pliable, easy to control, stripped of political rights, and subject to martial discipline at the first sign of recalcitrance -- unless, that is, you traveled back to the nineteenth century when convict labor was commonplace nationwide. Indeed, a sentence of “confinement at hard labor” was then the essence of the American penal system. More than that, it was one vital way the United States became a modern industrial capitalist economy -- at a moment, eerily like our own, when the mechanisms of capital accumulation were in crisis.

A Yankee Invention

What some historians call “the long Depression” of the nineteenth century, which lasted from the mid-1870s through the mid-1890s, was marked by frequent panics and slumps, mass bankruptcies, deflation, and self-destructive competition among businesses designed to depress costs, especially labor costs. So, too, we are living through a twenty-first century age of panics and austerity with similar pressures to shrink the social wage.

Convict labor has been and once again is an appealing way for business to address these dilemmas. Penal servitude now strikes us as a barbaric throwback to some long-lost moment that preceded the industrial revolution, but in that we’re wrong. From its first appearance in this country, it has been associated with modern capitalist industry and large-scale agriculture.

And that is only the first of many misconceptions about this peculiar institution. Infamous for the brutality with which prison laborers were once treated, indelibly linked in popular memory (and popular culture) with images of the black chain gang in the American South, it is usually assumed to be a Southern invention. So apparently atavistic, it seems to fit naturally with the retrograde nature of Southern life and labor, its economic and cultural underdevelopment, its racial caste system, and its desperate attachment to the “lost cause.”

As it happens, penal servitude -- the leasing out of prisoners to private enterprise, either within prison walls or in outside workshops, factories, and fields -- was originally known as a “Yankee invention.”

First used at Auburn prison in New York State in the 1820s, the system spread widely and quickly throughout the North, the Midwest, and later the West. It developed alongside state-run prison workshops that produced goods for the public sector and sometimes the open market.

A few Southern states also used it. Prisoners there, as elsewhere, however, were mainly white men, since slave masters, with a free hand to deal with the “infractions” of their chattel, had little need for prison. The Thirteenth Amendment abolishing slavery would, in fact, make an exception for penal servitude precisely because it had become the dominant form of punishment throughout the free states.

Nor were those sentenced to “confinement at hard labor” restricted to digging ditches or other unskilled work; nor were they only men. Prisoners were employed at an enormous range of tasks from rope- and wagon-making to carpet, hat, and clothing manufacturing (where women prisoners were sometimes put to work), as well coal mining, carpentry, barrel-making, shoe production, house-building, and even the manufacture of rifles. The range of petty and larger workshops into which the felons were integrated made up the heart of the new American economy.

Observing a free-labor textile mill and a convict-labor one on a visit to the United States, novelist Charles Dickens couldn’t tell the difference. State governments used the rental revenue garnered from their prisoners to meet budget needs, while entrepreneurs made outsized profits either by working the prisoners themselves or subleasing them to other businessmen.

Convict Labor in the ‘New South’

After the Civil War, the convict-lease system metamorphosed. In the South, it became ubiquitous, one of several grim methods -- including the black codes, debt peonage, the crop-lien system, lifetime labor contracts, and vigilante terror -- used to control and fix in place the newly emancipated slave. Those “freedmen” were eager to pursue their new liberty either by setting up as small farmers or by exercising the right to move out of the region at will or from job to job as “free wage labor” was supposed to be able to do.

If you assumed, however, that the convict-lease system was solely the brainchild of the apartheid all-white “Redeemer” governments that overthrew the Radical Republican regimes (which first ran the defeated Confederacy during Reconstruction) and used their power to introduce Jim Crow to Dixie, you would be wrong again. In Georgia, for instance, the Radical Republican state government took the initiative soon after the war ended. And this was because the convict-lease system was tied to the modernizing sectors of the post-war economy, no matter where in Dixie it was introduced or by whom.

So convicts were leased to coal-mining, iron-forging, steel-making, and railroad companies, including Tennessee Coal and Iron (TC&I), a major producer across the South, especially in the booming region around Birmingham, Alabama. More than a quarter of the coal coming out of Birmingham’s pits was then mined by prisoners. By the turn of the century, TC&I had been folded into J.P. Morgan’s United States Steel complex, which also relied heavily on prison laborers.

All the main extractive industries of the South were, in fact, wedded to the system. Turpentine and lumber camps deep in the fetid swamps and forest vastnesses of Georgia, Florida, and Louisiana commonly worked their convicts until they dropped dead from overwork or disease. The region’s plantation monocultures in cotton and sugar made regular use of imprisoned former slaves, including women. Among the leading families of Atlanta, Birmingham, and other “New South” metropolises were businessmen whose fortunes originated in the dank coal pits, malarial marshes, isolated forests, and squalid barracks in which their unfree peons worked, lived, and died.

Because it tended to grant absolute authority to private commercial interests and because its racial make-up in the post-slavery era was overwhelmingly African-American, the South’s convict-lease system was distinctive. Its caste nature is not only impossible to forget, but should remind us of the unbalanced racial profile of America’s bloated prison population today.

Moreover, this totalitarian-style control invited appalling brutalities in response to any sign of resistance: whippings, water torture, isolation in “dark cells,” dehydration, starvation, ice-baths, shackling with metal spurs riveted to the feet, and “tricing” (an excruciatingly painful process in which recalcitrant prisoners were strung up by the thumbs with fishing line attached to overhead pulleys). Even women in a hosiery mill in Tennessee were flogged, hung by the wrists, and placed in solitary confinement.

Living quarters for prisoner-workers were usually rat-infested and disease-ridden. Work lasted at least from sunup to sundown and well past the point of exhaustion. Death came often enough and bodies were cast off in unmarked graves by the side of the road or by incineration in coke ovens. Injury rates averaged one per worker per month, including respiratory failure, burnings, disfigurement, and the loss of limbs. Prison mines were called “nurseries of death.” Among Southern convict laborers, the mortality rate (not even including high levels of suicides) was eight times that among similar workers in the North -- and it was extraordinarily high there.

The Southern system also stood out for the intimate collusion among industrial, commercial, and agricultural enterprises and every level of Southern law enforcement as well as the judicial system. Sheriffs, local justices of the peace, state police, judges, and state governments conspired to keep the convict-lease business humming. Indeed, local law officers depended on the leasing system for a substantial part of their income. (They pocketed the fines and fees associated with the “convictions,” a repayable sum that would be added on to the amount of time at “hard labor” demanded of the prisoner.)

The arrest cycle was synchronized with the business cycle, timed to the rise and fall of the demand for fresh labor. County and state treasuries similarly counted on such revenues, since the post-war South was so capital-starved that only renting out convicts assured that prisons could be built and maintained.

There was, then, every incentive to concoct charges or send people to jail for the most trivial offenses: vagrancy, gambling, drinking, partying, hopping a freight car, tarrying too long in town. A “pig law” in Mississippi assured you of five years as a prison laborer if you stole a farm animal worth more than $10. Theft of a fence rail could result in the same.

Penal Servitude in the Gilded Age North

All of this was only different in degree from prevailing practices everywhere else: the sale of prison labor power to private interests, corporal punishment, and the absence of all rights including civil liberties, the vote, and the right to protest or organize against terrible conditions.

In the North, where 80% of all U.S. prison labor was employed after the Civil War and which accounted for over $35 billion in output (in current dollars), the system was reconfigured to meet the needs of modern industry and the pressures of “the long Depression.” Convict labor was increasingly leased out only to a handful of major manufacturers in each state. These textile mills, oven makers, mining operations, hat and shoe factories -- one in Wisconsin leased that state’s entire population of convicted felons -- were then installing the kind of mass production methods becoming standard in much of American industry. As organized markets for prison labor grew increasingly oligopolistic (like the rest of the economy), the Depression of 1873 and subsequent depressions in the following decades wiped out many smaller businesses that had once gone trawling for convicts.

Today, we talk about a newly “flexible economy,” often a euphemism for the geometric growth of a precariously positioned, insecure workforce. The convict labor system of the nineteenth century offered an original specimen of perfect flexibility.

Companies leasing convicts enjoyed authority to dispose of their rented labor power as they saw fit. Workers were compelled to labor in total silence. Even hand gestures and eye contact were prohibited for the purpose of creating “silent and insulated working machines.”

Supervision of prison labor was ostensibly shared by employers and the prison authorities. In fact, many businesses did continue to conduct their operations within prison walls where they supplied the materials, power, and machinery, while the state provided guards, workshops, food, clothing, and what passed for medical care. As a matter of practice though, the foremen of the businesses called the shots. And there were certain states, including Nebraska, Washington, and New Mexico, that, like their Southern counterparts, ceded complete control to the lessee. As one observer put it, “Felons are mere machines held to labor by the dark cell and the scourge.”

Free market industrial capitalism, then and now, invariably draws on the aid of the state. In that system’s formative phases, the state has regularly used its coercive powers of taxation, expropriation, and in this case incarceration to free up natural and human resources lying outside the orbit of capitalism proper.

In both the North and the South, the contracting out of convict labor was one way in which that state-assisted mechanism of capital accumulation arose. Contracts with the government assured employers that their labor force would be replenished anytime a worker got sick, was disabled, died, or simply became too worn out to continue.

The Kansas Wagon Company, for example, signed a five-year contract in 1877 that prevented the state from raising the rental price of labor or renting to other employers. The company also got an option to renew the lease for 10 more years, while the government was obliged to pay for new machinery, larger workshops, a power supply, and even the building of a switching track that connected to the trunk line of the Pacific Railway and so ensured that the product could be moved effectively to market.

Penal institutions all over the country became auxiliary arms of capitalist industry and commerce. Two-thirds of all prisoners worked for private enterprise.

Today, strikingly enough, government is again providing subsidies and tax incentives as well as facilities, utilities, and free space for corporations making use of this same category of abjectly dependent labor.

The New Abolitionism

Dependency and flexibility naturally assumed no resistance, but there was plenty of that all through the nineteenth century from workers, farmers, and even prisoners. Indeed, a principal objective in using prison labor was to undermine efforts to unionize, but from the standpoint of mobilized working people far more was at stake.

Opposition to convict labor arose from workingmen’s associations, labor-oriented political parties, journeymen unions, and other groups which considered the system an insult to the moral codes of egalitarian republicanism nurtured by the American Revolution. The specter of proletarian dependency haunted the lives of the country’s self-reliant handicraftsmen who watched apprehensively as shops employing wage labor began popping up across the country. Much of the earliest of this agitation was aimed at the use of prisoners to replace skilled workers (while unskilled prison labor was initially largely ignored).

It was bad enough for craftsmen to see their own livelihoods and standards of living put in jeopardy by “free” wage labor. Worse still was to watch unfree labor do the same thing. At the time, employers were turning to that captive prison population to combat attempts by aggrieved workers to organize and defend themselves. On the eve of the Civil War, for example, an iron-molding contractor in Spuyten Duyvil, north of Manhattan in the Bronx, locked out his unionized workers and then moved his operation to Sing Sing penitentiary, where a laborer cost 40 cents, $2.60 less than the going day rate. It worked, and Local 11 of the Union of Iron Workers quickly died away.

Worst of all was to imagine this debased form of work as a model for the proletarian future to come. The workingman’s movement of the Jacksonian era was deeply alarmed by the prospect of “wage slavery,” a condition inimical to their sense of themselves as citizens of a republic of independent producers. Prison labor was a sub-species of that dreaded “slavery,” a caricature of it perhaps, and intolerable to a movement often as much about emancipation as unionization.

All the way through the Gilded Age of the 1890s, convict labor continued to serve as a magnet for emancipatory desires. In addition, prisoners’ rebellions became ever more common -- in the North particularly, where many prisoners turned out to be Civil War veterans and dispossessed working people who already knew something about fighting for freedom and fighting back. Major penitentiaries like Sing Sing became sites of repeated strikes and riots; a strike in 1877 even took on the transplanted Spuyten Duyvil iron-molding company.

Above and below the Mason Dixon line, political platforms, protest rallies, petition campaigns, legislative investigations, union strikes, and boycotts by farm organizations like the Farmers Alliance and Grange cried out for the abolition of the convict-lease system, or at least for its rigorous regulation. Over the century’s last two decades, more than 20 coal-mine strikes broke out because of the use of convict miners.

The Knights of Labor, that era’s most audacious labor movement, was particularly exercised. During the Coal Creek Wars in eastern Tennessee in the early 1890s, for instance, TC&I tried to use prisoners to break a miners’ strike. The company’s vice president noted that it was “an effective club to hold over the heads of free laborers.”

Strikers and their allies affiliated with the Knights, the United Mine Workers, and the Farmers Alliance launched guerilla attacks on the prisoner stockade, sending the convicts they freed to Knoxville. When the governor insisted on shipping them back, the workers released them into the surrounding hills and countryside. Gun battles followed.

The Death of Convict Leasing

In the North, the prison abolition movement went viral, embracing not only workers' organizations, sympathetic rural insurgents, and prisoners, but also widening circles of middle-class reformers. The newly created American Federation of Labor denounced the system as “contract slavery.” It also demanded the banning of any imports from abroad made with convict labor and the exclusion from the open market of goods produced domestically by prisoners, whether in state-run or private workshops. In Chicago, the construction unions refused to work with materials made by prisoners.

By the latter part of the century, in state after state penal servitude was on its way to extinction. New York, where the "industry" was born and was largest, killed it by the late 1880s. The tariff of 1890 prohibited the sale of convict-made wares from abroad. Private leasing continued in the North, but under increasingly restrictive conditions, including Federal legislation passed during the New Deal. By World War II, it was virtually extinct (although government-run prison workshops continued as they always had).

At least officially, even in the South it was at an end by the turn of the century in Tennessee, Louisiana, Georgia, and Mississippi. Higher political calculations were at work in these states. Established elites were eager to break the inter-racial alliances that had formed over abolishing convict leasing by abolishing the hated system itself. Often enough, however, it ended in name only.

What replaced it was the state-run chain gang (although some Southern states like Alabama and Florida continued private leasing well into the 1920s). Inmates were set to work building roads and other infrastructure projects vital to the flourishing of a mature market economy and so to the continuing process of capital accumulation. In the North, the system of “hard labor” was replaced by a system of “hard time,” that numbing, brutalizing idleness where masses of people extruded from the mainstream economy are pooled into mass penal colonies. The historic link between labor, punishment, and economic development was severed, and remained so... until now.

Convict Leasing Rises Again

"Now," means our second Gilded Age and its aftermath. In these years, the system of leasing out convicts to private enterprise was reborn. This was a perverse triumph for the law of supply and demand in an era infatuated with the charms of the free market. On the supply side, the U.S. holds captive 25% of all the prisoners on the planet: 2.3 million people. It has the highest incarceration rate in the world as well, a figure that began skyrocketing in 1980 as Ronald Reagan became president. As for the demand for labor, since the 1970s American industrial corporations have found it increasingly unprofitable to invest in domestic production. Instead, they have sought out the hundreds of millions of people abroad who are willing to, or can be pressed into, working for far less than American workers.

As a consequence, those back home -- disproportionately African-American workers -- who found themselves living in economic exile, scrabbling to get by, began showing up in similarly disproportionate numbers in the country’s rapidly expanding prison archipelago. It didn’t take long for corporate America to come to view this as another potential foreign country, full of cheap and subservient labor -- and better yet, close by.

What began in the 1970s as an end run around the laws prohibiting convict leasing by private interests has now become an industrial sector in its own right, employing more people than any Fortune 500 corporation and operating in 37 states. And here’s the ultimate irony: our ancestors found convict labor obnoxious in part because it seemed to prefigure a new and more universal form of enslavement. Could its rebirth foreshadow a future ever more unnervingly like those past nightmares?

Today, we are being reassured by the president, the mainstream media, and economic experts that the Great Recession is over, that we are in “recovery” even though most of the recovering patients haven’t actually noticed significant improvement in their condition. For those announcing its arrival, “recovery” means that the mega-banks are no longer on the brink of bankruptcy, the stock market has made up lost ground, corporate profits are improving, and notoriously unreliable employment numbers have improved by several tenths of a percent.

What accounts for that peculiarly narrow view of recovery, however, is that the general costs of doing business are falling off a cliff as the economy eats itself alive. The recovery being celebrated owes thanks to local, state, and Federal austerity budgets, the starving of the social welfare system and public services, rampant anti-union campaigns in the public and private sector, the spread of sweatshop labor, the coercion of desperate unemployed or underemployed workers to accept lower wages, part-time work, and temporary work, as well as the relinquishing of healthcare benefits and a financially secure retirement -- in short, to surrender the hope that is supposed to come with the American franchise.

Such a recovery, resting on the stripping away of the hard won material and cultural achievements of the past century, suggests a new world in which the prison-labor archipelago could indeed become a vast gulag of the downwardly mobile.

[Steve Fraser is Editor-at-Large of New Labor Forum, co-founder of the American Empire Project (Metropolitan Books), and a TomDispatch regular. He is, most recently, the author of Wall Street: America’s Dream Palace. He teaches history at Columbia University.

Joshua B. Freeman, a TomDispatch regular, teaches history at Queens College and at the Graduate Center of the City University of New York and is affiliated with its Joseph S. Murphy Labor Institute. His forthcoming book,
American Empire, will be the final volume of the Penguin History of the United States.]

[Further Reading: For those interested in learning more about the history of prison labor and the convict-leasing system, we highly recommend three books that were crucial to us in writing this essay: Rebecca M. McLennan’s The Crisis of Imprisonment: Protest, Politics, and the Making of the American Penal State, 1776-1941, Alex Lichtenstein’s Twice the Work of Free Labor: The Political Economy of Convict Labor in the New South, and Douglas A. Blackmon’s Slavery by Another Name: The Re-Enslavement of Black Americans from the Civil War to World War II.]

This piece is an adaptation of an “In the Rearview Mirror” column that will be published in a forthcoming issue of the magazine New Labor Forum.

Source / TomDispatch

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Friday, April 13, 2012

Does Capitalism Actually Destroy Human Moral and Ethical Values?

Jeffrey Sachs: Wall Street Sense of Entitlement is Beyond Measure

Jeffrey Sachs in conversation at the Guardian Open Weekend. Professor Sachs talks about socio-economic psychology and the sense of entitlement exhibited by Wall Street bankers who, having been bailed out to the tune of $1tn after nearly destroying the world economy, then lobbied for no regulation.



Source / Common Dreams

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Friday, March 16, 2012

But Will It Keep Working This Way?

In which Greg Smith, (now former) Goldman Sachs executive director, offers a master class on how to compose a letter of resignation.

Everything Dies
By William Rivers Pitt / March 16, 2012

Call me a convert, but I'm beginning to dig this whole let-the-marketplace-work-it-out capitalism thing. You know, actual market capitalism and stuff? It's pretty awesome when you make it work its magic.

First of all, and since Rush Limbaugh has been all the buzz of late, let's be clear on a couple of important points:

1. Those who categorize advertiser-aimed activism against Limbaugh and his orgiastic festival of woman-hatred as attacks on "Free Speech" need to remember that free speech equals the First Amendment. That Amendment can only be attacked by the government, which is why it's called an "Amendment." You know, to the Constitution and stuff, right? When ordinary citizens go after an obnoxious diaper-rash of a radio personality like Limbaugh, that's nothing more or less than people exercising their right to free speech, too.

2. Going after advertisers of an offensive public figure is the equivalent of using money as speech. As the current ultra-conservative Supreme Court has seen fit to re-establish money as speech, by way of their Citizens United decision, that means those who attack Limbaugh through his sponsors are following the black-letter spirit of conservative law.

So, yeah, sorry about that.

In other news along the same happy lines, a high-ranking Goldman Sachs bot saw fit to flee his chosen profession like a firework across the sky. The manner of his departure was comprehensively enjoyed by the Occupy movement, and of course Mr. Smith was fully trashed for his candor.

Even so:

Goldman Sachs Group Inc. saw $2.15 billion of its market value wiped out after an employee assailed Chief Executive Officer Lloyd C. Blankfein's management and the firm's treatment of clients, sparking debate across Wall Street.

The shares dropped 3.4 percent in New York trading yesterday, the third-biggest decline in the 81-company Standard & Poor's 500 Financials Index, after London-based Greg Smith made the accusations in a New York Times op-ed piece.

Smith, who also wrote that he was quitting after 12 years at the company, blamed Blankfein, 57, and President Gary D. Cohn, 51, for a "decline in the firm's moral fiber."

The power of the pen - a single op-ed - cost these brutes more than $2 billion in a single day.

That, right there, is how capitalism is supposed to work. Real capitalism is a process in which those who can't compete, and those who cheat, die.

Hm.

Sounds pretty good to me.

"Too Big To Fail" is someone else's catch-phrase. Not mine. I think the very idea is pure nonsense.

Nothing on the skin of this Earth is too big to fail.

Not even the fake-ass robber-baron shell game currently passing itself off as "capitalism."

Everything dies, sooner or later.

Everything.

#Occupy

Source / Truthout

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