Posts Tagged ‘capitalism’

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A Black Agenda Radio Commentary by BAR managing editor Bruce A. Dixon

What if policymakers wanted to make marijuana safe for taxation and corporate profit, but needed to make sure legalization didn’t produce new jobs and economic opportunities for poor and working class communities, or make them lay off any cops and judges, or have to close any prisons or jails? Well, the model in place in Colorado today would be a good start.

Is the End of Marijuana Prohibition the End of the War On Drugs? Probably Not.

A Black Agenda Radio Commentary by BAR managing editor Bruce A. Dixon

The forty years of so-called “war on drugs” has been the rhetorical excuse for a nationwide policy of punitive overpolicing in black and brown communities. Although black and white rates of drug use have been virtually identical, law enforcement strategies focused police resources almost exclusively upon communities of color. Prosecutors and judges did their bit as well, charging and convicting whites significantly less often, and to less severe sentences than blacks.

The forty years war on drugs has been the front door of what can only be described as the prison state, in which African Americans are 13% of the population but more than 40% of the prisoners, and the chief interactions of government with young black males is policing, the courts and imprisonment. Given all that, the beginning of the end of marijuana prohibition, first in Colorado and soon to be followed by other states ought to be great good news. But not necessarily.

Ask yourself, what would it look like if policymakers wanted to end the prohibition of marijuana, but not necessarily the the war on drugs. What if they desired to lock down the potential economic opportunities opened up by legalizing weed to themselves and their class, to a handful of their wealthy and well-connected friends and campaign contributors? What if they wanted to make the legal marijuana market safe for predatory agribusiness, which would like to claim lucrative patents on all the genetic varieties of marijuana which can be legally grown, <a href="http://www.huffingtonpost.com/2013/02/13/genetically-modified-seed-patent-report_n_2678837.html&#8221; target=”_blank”>as they already try to do with other crops?

If they wanted to do those things, the system in place in Colorado today would be a good start. In Denver today, low income property owners can’t just plant pot in the back yard or on the roof in hopes of making one mortgage payment a year out of twelve, it doesn’t work that way. Ordinary households are limited to <a href="http://www.denverpost.com/homegarden/ci_24782729/growing-your-own-marijuana-colorado-legal-doesnt-mean&#8221; target=”_blank”>3 plants per adult, and for reference only the female plants are good for smoking, and prohibited from selling the weed or the seed. To participate in the marijuana economy as anything but a consumer requires background checks, hefty license fees, a minimum of hundreds of thousands to invest, and the right connections. All this currently drives the price of legal weed in Colorado to over $600 per ounce, including a 25% state tax, roughly double the reported street price of illegal weed.

So to enable the state to collect that tax money, and the bankers, growers and investors to collect their profits from marijuana taxed by the state and regulated in the corporate interest, <a href="http://thegrio.com/2014/01/06/breaking-black-why-colorados-weed-laws-may-backfire-for-black-americans/&#8221; target=”_blank”>cops and judges and jailers in near future, in Colorado and in your state as well, figure to be just as busy as they always have been the last forty years, doing pretty much what they’ve always done… conducting a war on illegal drugs, chiefly in the poorer and blacker sections of town, with predictable results.

The end of marijuana prohibition is not designed to create jobs in our communities, nor is it intended to shrink the prison state. Our ruling class simply does not allow economic growth that they can’t monopolize, and the modern prison state has never been about protecting the public from drugs or crime. Prisons and our lifelong persecution of former prisoners serve to single out, brand and stigmatize the economic losers in modern capitalist society, so that those hanging on from paycheck to paycheck can have someone to look down upon and so that they might imagine that this vast edifice of inequality is, if not just, inevitable.

For Black Agenda Radio, I’m Bruce Dixon. Find us on the web at <a href="http://www.blackagendareport.com.

“>http://www.blackagendareport.com/”>www.blackagendareport.com.

Bruce A. Dixon is the managing editor at Black Agenda Report and the co-chair of the Georgia Green Party. He lives and works in Marietta GA and can be reached through this site’s contact page or at bruce.dixon(at)blackagendareport.com.

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Let’s get this straight: AIG execs got bailout bonuses, but pensioners get cuts

No one has accused city workers in Chicago or Detroit of bringing down the economy, but they could face pension cuts
Dean Baker for The Guardian (9-12-13)
A pensioner protests pensions cuts in Detroit

This would have forced AIG into bankruptcy. However Lehman had declared bankruptcy the day before and the world was still engulfed in the aftershocks. The Bush administration and the Federal Reserve board decided that they would stop the cascade of failing financial institutions and bail out AIG. As a result, the government agreed to honor all the CDS issued by AIG and effectively became the owner of the company.

Chicago has been in the news recently because its mayor, Rahm Emanuel, seems intent on cutting the pensions that its current and retired employees have earned. Emanuel insists that the city can’t afford these pensions and therefore workers and retirees will simply have to accept reduced benefits.

If the connection with AIG isn’t immediately apparent, then you have to look a bit deeper. Folks may recall that AIG paid out $170m in bonusesto its employees in March 2009 with its top executives receiving bonuses in the hundreds of thousands of dollars.

These were people who not only shared responsibility for driving the company into bankruptcy; they also had been at the center of the financial web that propelled the housing bubble into ever more dangerous territory. In other words, the bonus beneficiaries were among the leading villains in the economic disaster that is still inflicting pain across the country.

The prospect of executives of a bailed out company drawing huge bonuses at a time when the economy was shedding 600,000 jobs a month provoked outrage across the country. President Obama spoke on the issue and said that unfortunately no one in his administration was smart enough to find a way that could keep the bonuses from being paid. The problem according to Larry Summers, then the head of President Obama’s National Economic Council, was that the bonuses were contractual obligations and they had to be honored.

This provides a striking contrast to what might happen to current and former city employees in Chicago and may happen to current and former employers of the state of Illinois and Detroit. In these cases, it seems that the contracts workers had with their employers may not be honored. Employees who worked decades for these governments, with part of their pay taking the form of pensions in retirement, are now being told that these governments will not follow through on their end of the contract.

The differing treatment of contracts in these situations is striking for several reasons. First, the AIG executives stood to gain much more money with their bonuses on a per person basis. In contrast to the six-figure bonuses going to top executives, pensions for Detroit’s workers average just $18,500 a year. Pensions for Chicago’s workers average over $33,000 a year, but almost none of these workers will get Social Security, so this will be their whole retirement income.

In contrast to the top AIG executives, who played a role in bankrupting their company and sinking the economy, no one has accused workers in Chicago or Detroit of doing anything wrong. These were people who taught our kids, put out fires, and picked up garbage. They did their jobs.

They also might be excused for thinking that they could count on the governments involved to fulfill their end of the contract. After all, both Michigan and Illinois have provisions in their constitution stating that pensions earned by public sector workers cannot be cut. Since cities like Detroit and Chicago are creations of the state governments, workers for these cities, like workers for the state government, might have thought the state constitution protected their pensions. Apparently they should have hired lawyers who could have explained to them why this is not the case.

There is yet another connection between the plans to cut pensions and AIG. The bond rating agencies played a prominent role in both cases. In the case of AIG meltdown, the bond rating agencies gave investment grade ratings to trillions of dollars of mortgage backed securities (MBS). They often gave these ratings to dubious issues for the simple reason that they were being paid. As one analyst from S&P said in an e-mail, they would rate a new MBS if it “was structured by cows“.

The bond rating agencies played a similarly disastrous role in the pension problems facing state and local governments. In the stock run-up in the 1990s, they green-lighted accounting that essentially assumed that the stock bubble would continue in perpetuity, effectively growing without limit. This meant that state and local governments didn’t have to contribute to their pensions since the stock bubble was doing it for them. States like Illinois and cities like Chicago clung to this habit even after the bubble burst.

There is one final noteworthy connection between AIG and the Chicago pension situation. Chicago’s Mayor, Rahm Emanuel, was President Obama’s chief of staff at the time that no one could figure out how to avoid paying the AIG bonuses. Apparently Emanuel has learned more about voiding contractual obligations now that it is ordinary workers at other end of the commitment.

Pope Francis’ Five Most Radical Statements On Capitalism And Poverty.

By Eric Brown on November 26 2013

Capitalism comes under attack again in the latest publication from Pope Francis. On Tuesday the pontiff published his first long-form document written as pope, known as an apostolic exhortation. The 84-page “Evangelii Gaudium” (The Joy of the Gospel) speaks at length about the evils of unfettered capitalism and the church’s need to minister to the poor.

It’s not the first time the pope has attacked capitalism. Since his election to the papacy eight months ago, Pope Francis has made a name for himself as a radical by calling for reform of global financial systems that exclude the poor to the benefit of the rich.

Below, check out five of Pope Francis’ most revolutionary statements on capitalism and global income inequality, from “Evangelii Guadium” and other sources.

Capitalism Kills

In Pope Francis’ apostolic exhortation, he takes some of his harshest shots yet at global capitalism, saying that economies that prey on the poor are tantamount to murder.

“Just as the commandment ‘Thou shalt not kill’ sets a clear limit in order to safeguard the value of human life, today we also have to say “thou shalt not” to an economy of exclusion and inequality. Such an economy kills. How can it be that it is not a news item when an elderly homeless person dies of exposure, but it is news when the stock market loses two points? This is a case of exclusion.”

Trickle-Down Economics

With “Evangelii Gaudium,” Francis also blasted trickle-down economic theories, saying that those in economic power will always work to benefit themselves and not the poor in such a scenario.

“Some people continue to defend trickle-down theories which assume that economic growth, encouraged by a free market, will inevitably succeed in bringing about greater justice and inclusiveness in the world. This opinion, which has never been confirmed by the facts, expresses a crude and naïve trust in the goodness of those wielding economic power and in the sacralized workings of the prevailing economic system. Meanwhile, the excluded are still waiting.”

The Catholic Church Is for the Poor

Pope Francis isn’t just content to attack financial problems outside of the church, either. In an interview with Italian journalist (and atheist) Eugenio Scalfari, Pope Francis questioned the Catholic Church itself, claiming that the church must be focused on the poor, not on itself or divisive issues like same-sex marriage and abortion.

“Heads of the Church have often been narcissists, flattered and thrilled by their courtiers. The court is the leprosy of the papacy. The Church is or should go back to being a community of God’s people, and priests, pastors and bishops who have the care of souls are at the service of the people of God.”

“I believe I have already said that our goal is not to proselytize but to listen to needs, desires and disappointments, despair, hope. We must restore hope to young people, help the old, be open to the future, spread love. Be poor among the poor. We need to include the excluded and preach peace.”

God Says to Focus on Poor

Speaking about his past and present as a Jesuit with American Magazine, Pope Francis claimed that his decisions to eschew material wealth and minister to the poor come directly from God.

“Discernment is always done in the presence of the Lord, looking at the signs, listening to the things that happen, the feeling of the people, especially the poor. My choices, including those related to the day-to-day aspects of life, like the use of a modest car, are related to a spiritual discernment that responds to a need that arises from looking at things, at people and from reading the signs of the times. Discernment in the Lord guides me in my way of governing.”

Capitalism Is Idolatry

In an open letter to British Prime Minister David Cameron on the eve of the G-8 Summit, Pope Francis called capitalism a new form of idolatry, saying the money should “serve” humanity, not lead it.

“The goal of economics and politics is to serve humanity, beginning with the poorest and most vulnerable wherever they may be, even in their mothers’ wombs. Every economic and political theory or action must set about providing each inhabitant of the planet with the minimum wherewithal to live in dignity and freedom, with the possibility of supporting a family, educating children, praising God and developing one’s own human potential.”

“We have created new idols. The worship of the golden calf of old has found a new and heartless image in the cult of money and the dictatorship of an economy which is faceless and lacking any truly humane goal.”

ADBUSTERS Tactical Briefing

Posted: 2013/10/01 by Punkonomics (@dearbalak) in editorial
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Global Spring

Angelos Tzortzinis/AFP/Getty Images

Hey all you still breathing out there,

On the second anniversary of OWS, here’s a manifesto to fill your lungs:

A Reboot of the Capitalist Imagination

Look outside your window today and admire how permanent everything is.

Cars faithfully zoom in and out of traffic without end. Financial skyscrapers frame the streets, investing your dollars and cashing your paychecks with ease. People pour out of apartments on their way to the office, to visit friends, to look for work. The social order, all the basic interactions of the day, are predictable, normal, most likely the same as yesterday. The sheer rigidity of the political system is not in question.

Now imagine that it all snaps. That everything you know is turned upside down. The coffee shop is closed. The bank door is shut. People stop following even the most basic prompts.

Looking out the window today, we have that same feeling we had on September 16th, 2011, the day before those first courageous occupiers packed up their tents and made their move on Wall Street. Only this time, as we gaze beyond the glass, there is an assuring upward tilt on our otherwise steady lips. We now have a confidence in this generation that we didn’t have before. There are still curveballs that can shock the financial and psychological order. There is a growing conviction that the things that can happen, will happen. The world is still up for grabs.

Revolution is a Rhizome

What we experienced in 2011 is still reverberating around the globe. Most recently, in Turkeyand Brazil, that feeling in the guts, that the future does not compute, is vibrant as ever. And because of that gnawing anxiety in the depths of an increasing mass of people, the new mode of activism, what Spanish journalist Bernardo Gutierrez calls a “new architecture of protest,” is spreading like a frenzy: what starts out as simple demands – don’t cut the trees, don’t raise the transit fair, don’t institute that corrupt judge – erupts into an all-encompassing desire to reboot the entire machine.

In the coming political horizon you can expect that wherever there is a crack, scandal, teacher strike or pipeline deception, you’ll find a hornet’s nest underneath. When you have a connected generation, all of their unique and individual demands are connected, too. Protest becomes a cornucopia, not a straight path. And the desire is not to destroy the system but to hack it, to re-code it, to commandeer it … to see revolution not as pyramid but as a rhizome … to see the system not as an unchanging text but as an ever changing language of computation, an algorithm.

More than ever we are seeing the actuality of the modern-day truism, “we are all one.” Now, as we have the technology to organize – who cares if the NSA is listening in, in fact we welcome them to listen in and to be inspired – this first-ever global generation will be able to articulate itself more clearly, more viscerally, more intensely and at a frequency like never before. #OccupyGezi becomes the call of Turkey. Brazilian flags are waved on the streets of Lima and Mexico. #idlenomore inspires indigenous sovereignty and environmental movements across the globe.

Take a look out the window today. It wasn’t always this way. It won’t be this way forever.

A Generation Under Pressure

This generation is under pressure. Leading American pundits like David Brooks and Andrew Sorkin laugh us off as ungrateful kids and milquetoast radicals, people who just aren’t willing to work like the previous generation. But these folks just don’t get it. The engine light of humanity has turned on. But no mechanic of the old paradigm can fix it. We’re experiencing a global system failure like never before. But no programmer of the old language can re-write it. The Earth is getting sick. The culture is in terminal decline. Mental illness is the number one cause of lost workplace hours in America. What other indicator does one need? Rejection is not ungratefulness, it’s a beautiful and sincere longing for a sane and sustainable tomorrow. But as the valves are twisted tighter … well … you can see the result everywhere.

Last July, as hundreds of thousands of protesters were marching in cities throughout Turkey and Brazil, Adbusters creative director Pedro Inoue skipped work to join the magic in the streets. He sent us this testimony from the center of São Paulo, a portrait that became the backbone of one of our most spirited and hopeful publications yet. We’ve long been accused of being too negative … yet here our readers saw a bright light:

It’s something you feel when the lover in your arms is laughing and you feel like your heart is going to break because there couldn’t possibly be any more room for good inside. The high begins to float you away. We were walking to the governor’s house, taking time along the way to talk, look at people waving flags from apartment windows, listen to chants coming and going like waves in this sea of people. I looked into this kid’s eyes. He kept talking but I only remember those eight words.

“Man, what a beautiful world we live in,” he said.

I was mesmerized by the shine in his eyes. Sparks. Flashes. Pulses. Bursts of light. When the global revolution finally arrives … it’s going to shine everywhere like that.

The conditions that spurred on the Greek anarchists, the Arab Spring, the Spanish indignados, #Occupywallstreet, the Chilean student revolt, Pussy riot, the Quebec uprising, #idlenomore, Yo Soy 132 in Mexico, and the insurrections in Istanbul, Lima, Bulgaria and São Paulo have only worsened. Inequality is reaching obscene proportions in America and many other nations. There is an ever-greater concentration of wealth, ever-bigger banks, a steady increase of high frequency trading (HFT), derivative confusion and outbursts of rogue financial algorithms that send markets dipping and waning beyond any human control. $1.3 trillion in speculative financial transactions keep swirling around the planet every day. The stage is now set for a much more catastrophic market crash than 2008. And inside each and every one of us, the desire for realis growing: Real economy. Real democracy. Real possibilities. Real humanity. Real leadership.Real horizons. Real interactions. Real things. Real life.

Three Metamemes for the Future

Here at Adbusters, we see three big tactical breakthrough ideas, three metamemes, that have the power to veer this global trainwreck of ours from its date with disaster. Make no mistake, the crash is a brutal world – a barbarian reality. It’s a happening that none of us should seek out joyfully. Yet we cannot just go with the flow, sing with the speed and trust the inertia of our current economic doomsday machine.

The first thing we can do is call for a radical re-think of our global economic system. Unbridled neocon capitalism has been riding the back of humankind without opposition for nearly two generations now. It has provided no answer yet and it has no answer for the most pressing threat of the future, namely climate change. Economics students and heterodox economists must rise up in universities everywhere and demand a shift in the theoretical foundations of economic science. We have to abandon almost everything we thought we knew about the gods of progress, happiness and growth. We have to re-imagine industry, nutrition, communication, transportation, housing and money and pioneer a new kind of economics, a bionomics, a psychonomics, an ecological economics that is up to the job of managing our planetary household.

The second thing we can do is usher in a new era of radical transparency … to add the right to live in a transparent world as a new human right in the constitution of nations and in the Universal Declaration of Human Rights. Current events in Syria are a perfect example of how secrecy by the major powers of the world leads to confusion and the possibility of catastrophic failure. Assad may get away with a type of murderous appetite not seen since WWII, for no reason other than the fact that America can no longer be trusted to tell the truth. Radical transparency is the only path towards a viable global democracy of the future.

The third thing we can do is take inspiration and learn lessons from a new tactical breakthrough in global activism – the revolution algorithm. The internet has reversed a centuries-old power dynamic. The street now has unprecedented power. Through hacking, rhizomatic organizing, viral memes, it can paralyze cities, bring whole countries to a standstill … protests and uprisings can spook stock markets into plunging 10% in a single day, as happened recently in Turkey, and, if we the people are angry and fired up enough, we can force even the most arrogant presidents and prime ministers to the democratic table.

In the 21st century, democracy could look like this: a dynamic, visceral, never-ending feedback loop between entrenched power structures and the street. In this new model, corporate power will be forever blunted by sustained and clearly articulated demands for new economic, political and environmental policies, for visceral debates and referendums on critical issues, for the revocation of the charters of corporations that break the public trust and for new laws and constitutional amendments on democratic fundamentals like secrecy, corporate personhood and the rules by which nations go to war. Every government department, every minister and the whole political establishment, right down to the think tanks, media pundits and CEOs, will be under the gun, on an almost daily basis, to bend to the ever changing pulse of the people.

As this second anniversary of Occupy passes, perhaps with raging flames, perhaps with only a few sparks, we can take solace in one thing: Our current global system – capitalism – is in terminal decline … and while its corpse is still twitching, our jobs, yours, mine, all of us, are to stay vigilant and to keep working on our own lives … We shy away from the megacorporations, we refuse to buy heavily advertised products, we meticulously seek out toxin-free information, we eat, travel, socialize and live as lightly as we can … we fight for our happiness … we build trust with each other and play the #killcap game at least once every day … and most important, we focus our eyes on the horizon and wait for our next moment to come.

—  Kalle Lasn and Darren Fleet


Adbusters 110: Autumn (Cover) The Epic Human Journey

Part 4: Autumn

Has the wild human spirit been tamed? Is oppositional culture still possible? Can we launch another revolution?

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The Stranglehold on Our Politics by Elizabeth Drew | The New York Review of Books.