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Tuesday, October 4, 2011

The Big Picture: A 40-Year Scan of the Right-Wing Corporate Takeover of America or the Hard Right Turn

AlterNet.org


Author and public intellectual Colin Greer tells us how we got where we are today. It's not a pretty picture, but hope is on the way.

At this moment, there are growing protests on Wall Street in Manhattan, in Boston at the Bank of America, and in cities around the country. These embryonic and creative efforts are targeting the greed of the banks, the collusion of the corporate class with their corrupt elected officials, the high level of unemployment, the huge burden of student loans in a time of diminished opportunities, the increasing numbers of poor and hungry people, and much more. These protests, along with those earlier in Wisconsin, Michigan and Ohio, are signs of revival of a long tradition of popular revolt against excesses of wealth and the corporate class.

The new protests come after a long dark period -- specifically the last 11 years of George W. Bush and Barack Obama -- during which time conservatives have gained more power and ability to control the national debate than they have in the past 75 years. The current right-wing power presence, spiked by the corporate media's obsession with Tea Party protests, came most immediately as a result of the Great Recession caused by the housing bubble and obscene corruption of the banks. This crisis was exacerbated by large-scale anger about the subsequent bank bailout, and corporate-backed attacks on the health care reform package passed by Congress. But that is just part of the latest political news.

The conservative ascendancy is hardly an overnight phenomenon. Rather, it represents a dynamic shift in American politics that has taken place over more than 40 years, beginning in the 1970s. During this time, conservative billionaire donors, corporations and the Chamber of Commerce, all invested in conservative think-tanks and communications infrastructure, while Fox News, Rush Limbaugh and a broad and deep media network of right-wing pundits have come to dominate the public discourse.

Subsequently, the liberal/progressive side of the political equation has lost much of its influence from the period of the 1970s and early '80s. How this has happened over time is little understood. In fact, the lack of protest and effective organizing against the right wing during the Tea Party ascension especially has been a mystery to many, and a source of great frustration.

Colin Greer, a transplanted Brit, has observed and engaged in every phase of progressive politics. Greer is the author of a number of books (with his best-known being The Great School Legend), has been a professor at Brooklyn College of CUNY, and for many years has served as president of the New World Foundation, known in the philanthropic world for its commitment to supporting grassroots organizing and providing seed money for many of the most effective progressive political efforts over the last decades. Over this long period, Greer has had a cat-seat view of all the forces that have shaped our last 40-plus years. He has a big-picture take on the turmoil and politics of this period, as major shifts -- globally, economically and culturally; the tectonic plates of change and reaction -- have reshaped our world in ways we have yet to fully understand. AlterNet sat down with Colin Greer in his office in New York in late September.

Don Hazen: Why have conservatives succeeded so dramatically in this period, and liberals and progressives are arguably the weakest in decades?

Colin Greer: There is no single causal factor. The shaping of these two divergent paths begins in the 1980s when you had the last flourish of an expansive society. But the last three years of the '70s were characterized by stagflation and disappointment and took a great toll, forfeiting a real sense that the constant growth of openness in American society and economy was endlessly sustainable. Fast-forward to the present and we have the twin dominance of austerity, i.e. eviscerating public spending as the solution to economic crises; and aristocracy, represented by the protected tax and profit oasis of the wealthiest 1 percent.

It’s instructive to note that events in the U.S. are not in isolation. Back in the '60s and '70s when progressive movements were in ascendency, the liberation themes of the time were part of a global anti-colonial uprising, and broad disgust at the war in Vietnam. Today, trade policies and globalization means that the other major economies of the world are also in the grips of a greed and hyper-profit which is in the process of discarding hard won values, rights and decent living conditions.

DH: That was Carter and also the hostage crisis too at the end of the '70s, yes?

CG: Yeah, it’s about how social and economic consciousness changed. Carter’s inability to act effectively in the hostage crisis or to defeat stagflation reinforced a national feeling of malaise and weakness. That’s why Reagan campaigned on "hope in America" versus Carter's kind of dismal, high-standing morality, an apparent inability to act from strength. It was the beginning of a long term of undermining the presumption of multi-dimensional social and economic expansion, which had flourished since World War II.

So in the 1980s you had Reagan, along with the last flourish of direct political action on the left and the last gasps of the global social change that characterized the 1960s and '70s; i.e. the fight against apartheid, which succeeded in turning the Reagan administration around to support the anti-apartheid/ divestment movement, and you had the Nuclear Freeze movement.

DH: These were the last grassroots successes of the left?

CG: Yes. Although one can never do a one to one equation, the Freeze was a factor in Reagan's shift in nuclear arms negotiations with the Russians and the anti-apartheid divestment strategies, fueled by a popular movement with strong student leadership, which created shantytowns on campuses throughout America, helped win that struggle.

But then there was a dramatic change in direction when the air traffic controllers went on strike. Reagan seized the moment, and fired the air traffic controllers, destroying PATCO, their union. That was the beginning of the end of the labor deal with capital; a deal that was carved out in the Cold War in which labor got negotiated settlements here at home for its support for the Cold War abroad. In a sense it was anti-red internationally and social democratic here in the United States. And that deal went through the beginning of the 1980s, until Reagan, responding to the conservative base, changed the ground rules. And with it, labor's guaranteed negotiating strength ended.

We have seen a diminishing power of labor since. And we've also seen a shrinking power of popular movements on the left as well, so that by the time we got to the invasion of Iraq, a million people in the street could be ignored. How different that was from the last gasps of enduring popular protest against Reagan’s contra-aid and its illegal processes.

DH: Those demonstrations against the Iraq invasion seemed like a big deal at the time, a major accomplishment, and around the world as well.

CG: Yeah, but for only one day. What is required is the ability to constantly bring people out and not end it when there’s no popular response. You need to get the news story, and push the politicians to shift. We're up against the kind of new politics in which they didn't shift and we didn't come out with continual resistance, and that inability to resist played out in the 1990s when you have a Democratic president who was disappointing over and over, with no popular mobilization against his deregulation of the finance industry or his welfare reform initiative.

DH: Is it possible to have a popular movement against a disappointing Democratic president?

CG: I think it was in 1992, but only theoretically; it didn't happen. By the 1990s, because progressives in a sense had been disciplined by the reduced power of labor, by the new power of the right, the visceral fear that Republicans would be worse, and the fact that a certain amount of administration figures came from progressive organizations and might still influence policy, all contributed to a lack of action against Clinton policies And there is another crucial point: by the time we get to late 1980s and 1990s, social movements on the left were essentially demobilized into NGOs and legislative agendas, so progressive politics became more about winning elections, seeking legislative reform, and building not-for-profit institutions that represented progressive vision and options. There no longer was a base beyond labor, which was itself shrinking.

DH: How sudden was this shift from more popular movements to foundation-funded projects?

CG: It happened over time. The trends were growing in the early '70s because progressives had control over a lot of federal spending, and a lot of activists had access to all the major agencies. There was a kind of flourish of success and even progress under Nixon. Legislative efforts were working. We especially got environmental legislation, and it looked like the courts were on our side. Meanwhile the right, in earnest, started building both its base and its options, with think tanks, organizations and communications capacity. But by 1990, the left so to speak, except for labor, had become almost entirely dependent on foundation support, which was based in the IRS 501 (c) (3) tax structure which required grant recipients to be non-partisan. But it was influential at the level of government and so it felt like it could deliver through the lobbying capacity of NGOs and by winning in the electoral, legislative and judicial spheres.

In the '80s, when they saw the right-wing agenda through Reagan taking serious root, many groups worked on voter registration to expand the electorate, but were constrained again by the IRS rules. It took a Jesse Jackson presidential campaign as a reminder that you need a popular base to move an agenda and to build a popular base to undercut the climate of low taxes, high profits, and the growing transfer of public assets into private control. Jackson created a social movement—he went to organized farmworkers, he worked with gay activists, he really did see that campaign as a progressive, social movement campaign.

But after Jackson (‘84 and ‘88) that kind of campaign mobilization didn't happen again until Obama. And Jackson did exactly what Obama did. He demobilized his campaign agency. He turned into a kind of not-for-profit organization, and Obama turned it into the Democratic Party. But they are two moments -- and it's interesting that both black figures produced the sense of a national movement. But the end of the Jackson campaign coincided with end of '80s, and that was where the Democratic Leadership Council, that Clinton led, emerged strongly and represented the shift to a "new progressive politics" where they made progressive mean something else. Imagine if the Jackson campaign had remained mobilized in relation to the Clinton administration and/or if the Obama campaign had remained live going into the 2010 elections when victories on the right were won by small margins.

DH: I assume when you say progressive came to mean something else, it meant moderate?

CG: In a sense once you had Murdoch and Fox and a growing conservative infrastructure, it labeled the DLC—transfused Democratic party—as the left. Any real left was marginalized into virtual invisibility and anonymity, the center was moved significantly to the right, and progressives increasingly pushed into protecting eroding rights and benefits, without a political infrastructure or national leadership of its own. In the electoral arena, in the media, and in the mainstream foundation world, moderate was called left or liberal, and leaders in pursuit of public office more and more have eschewed the liberal label by moving ever so profoundly to the right.

DH: So the middle became the left, and the conservatives keep moving successfully to the right -- a trend we have seen reach the present moment of the far, far right influencing the political process. And there has been no pendulum swinging back, that's for sure.

CG: Yes, and one of the critical ingredients in this huge shift rightward over the last few decades, as I inferred earlier, was the end of the Cold War. The collapse of the Soviet Union had a profound effect on two things: 1) the idea that there was a left alternative, and that there was a path to reform that had the best interest of the public at large as its highest priority, and had the "state" involved directly in business and the interest of public; and 2) the shift of states in the Soviet orbit to capitalism basically made capitalism the world model. So then it was a question of what you did in the framework of capitalism, not challenging its framework. That's been the umbrella for China, India, Brazil. All over, left groups moved into the electoral arena, and didn't challenge the capitalist model. As a result, we now have a global context that advances austerity and aristocracy in support of a global capitalism that has declared war on the social contract.

In the Scandinavian model, they're more responsive to public conditions, but not to challenging capitalism itself. I'm not arguing that we need a left to challenge capitalism because it isn't clear that we do have that option. But what we're faced with now is that any system that has monopoly status moves toward tyranny. So we're now seeing that 40 years of the rogue rise of the right has produced a tyrannical right. All of the conditions, the improvements around tolerance and cultural openness and responsibility for the poorest of the poor, the perspective that a healthy society is one that has a priority to care for all its people -- those standards have so diminished so that you have candidates now talking about the fact that people may have to starve. And that’s now a legitimate thing to say. Killing gets cheered by the GOP grassroots. The four GOP debates so far are really interesting because they indicate something really seriously bad.

DH: The rise of the Tea Party, aided by its intense promotion by the corporate media, has given the public the sense that there is a powerful angry grassroots movement underway. How does that play out?

CG: Tyranny grows first of all in the establishment of a legitimation of its point of view, even on the margins. You can see it in Swift Boat attacks on John Kerry, a war hero, and with Murdoch and Roger Ailes growing Fox. There is the constant testing of a model that is very similar in tone to the most successful moment of progressives in the 1960s. It reaches into high levels of rhetorical hysteria. When we were on the streets 40 years ago there was a kind of hysteria -- police were the enemy. There's a similar level of hysteria now. What that means is basically that on the road to power, most people committed to power will use the "crowd" -- they construct a crowd. You need the crowd, even if it's only a tiny fraction of the population. If the crowd is visible through spectacle then you start conditioning the public's readiness to act, and you encourage readiness of others not to act.

So in the present political reality, you have the convergence of the crowd's mentality, with the readiness to be tyrannical in leadership, with leaders in Congress like Jim DeMint, Eric Cantor, and of course funding for it all from the Kochs. This tyrannical style of leadership has grown through the Bush years to a dramatic level, and has not been effectively challenged by Obama. You have the growth of the crowd and the paralysis of public at large. When you look at poll data there is no way in which the public agrees with the Tea Party or with right-wing political figures, but it is paralyzed, and paralyzed serially over time.

A million people on the street didn't get listened to over the Iraq invasion, or the defeat of Kerry through usurping of the public stage by Swift Boat in 2000. Then the inability of Gore to fight for his election followed by the Supreme Court decision which gave us eight years of Bush. The choice to fight or not is rarely a popularly held prerogative until the public bursts forth as perhaps in the Arab Spring. Until such moments, leadership is top down, especially in the electoral arena, where money and incumbency determine authority and good judgment.

The Tea Party is the latest in a series of experiments -- remember the Promise Keepers and the Christian Coalition back in the '80s -- to advance right-wing politics from the margins to a new center. We've been holding them off time and time again but not by producing anything for the future. Instead we have benefitted from the cultural victories of the '70s and '80s that have become enshrined in entertainment conventions and interpersonal lifestyles. In both realms we have taken great strides to persuade Americans that young people should have the vote at 18, that women are equal, that abortion is pretty much something you can argue rhetorically but hard to lose practically, but now we're losing ground on everything. The death penalty for a while looked like we were humane, we don't just kill people -- we're losing ground on that. We didn't go to war casually -- we've lost ground on that.

DH: Without tension of competing systems, is there an inevitable march to the extreme? Is there a theory that most extreme seems to always win out?

CG: The fact is, a society grows into tyranny over time as the most powerful cultivate extreme crowd behavior, which, unless resisted can have a contagion effect into the public at large, paralyzing resistance and recruiting frightened supporters. While clearly minority politics, the Tea Party zealots who cheered at death and execution much as Sarah Palin once called on us to “Drill, baby, drill!”ought to be a reminder and a warning. But I don’t know any mainstream media that treated the cheers for the death penalty and barbarous inhumanity to the sick as a story truly worth engaging. The crowd is the critical thing that tyranny requires eventually -- the mobilization of the crowd. With recessions every 10 years, the circumstances periodically creates the possibility for angry people to be organized into a crowd. Progressives did that. The New Deal was about using the circumstance of the depression to organize a progressive crowd.

DH: Mostly organized by the Communist Party. But we have no capacity to do that now?

CG: and the Socialist party. But there was a plethora of organizations. And no, we have no apparent capacity do that now, although we desperately need it. New protests and organizing efforts are definitely sparks of hope. But that kind of action is primarily on the right.

DH: It's a resource question, too?

CG: Yes, and it's also a planning and leadership question. The Socialist party, Catholic Workers, Communists -- they were planners, they had an agenda not limited by electoral and legislative politics, and not dependent on foundation resources for scale. Forty years ago a dozen small progressive foundations could help support strong action and analysis. The big checks now come from professionalized, very mainstream foundations that do not, as was the case with the earlier funders, institutionally identify with a progressive world view.

DH: The Kochs write the big checks for the right today. So is the weakness primarily an issue of class -- resources staying in the educated class?

CG. No. It is that and it is something deeper, more psychological. When I was in England a bit ago, I was talking to a Syrian cab driver, this was in the middle of the Arab Spring. I said, why is it that you've got (this was before the riots) English kids protesting at Trafalgar Square against tuition increases? You've got women in Rome -- a million people -- protesting against Silvio Berlusconi. The next day they've all gone home, the kids have gone home. In America we had the resistance against the Iraq war, they went home. But in Egypt they came back every single day. In Yemen they come back every day. And he said, "Well, we in the West have freedom. They don't have the freedom."

So there is someway in which we have the consciousness here that we have something that could be lost that we don't want to risk. In the Middle East, there is nothing left to be lost.

DH: So fast-forward to the present. How has the right-wing philosophy which has dramatically increased its influence, changed the nature of government?

CG: What we are up against is the constant reduction of compassion as the highest priority in how you make public policy and deliver public goods. The right wants to take public space. They want to take public resources. In response, progressives get lost in the message of to trying to re-instill belief in government. With the government argument, I think we're missing the point, both in terms of compassion but also that it's not not about belief in government. It's about who owns government and what it's for. Despite the right's anti-government rhetoric, their practice is pro government. But it is government for them. So we must challenge the principle of who owns government. We are saying they've diminished the belief in government, but why does Rick Perry want to become president of the United States and, in effect, CEO of the nation’s investment engine, that is, government.

It's not because he doesn't believe in government, it's because he wants to control government. They want to control and privatize government resources. Capitalism is exhausted here. It needs more public money. It’s always needed public money, it needs more now. When you look at the growth of capitalism in America from railroads all the way to the computer, it's publicly funded. I say to people what do Velcro and GPS have in common? They were both created by the military. And who is making a profit from that? Does the public get any return for its investment?

But if we had a conception of government that was not only tax agent, service deliverer, but also an investor in the economy like a bank, and it was entitled to a return just the way a bank gets return, we'd have plenty money. But we don't treat ourselves as the investor. But every major technological growth has been publicly invested in. If we were a shareholder in Microsoft because we invented the computer, it would be a very different terrain. So the reinvention of capitalism is the issue, and the reinvention of government is what is happening. So capitalism is directly claiming public investment now.

DH: Can you provide a current example of the privatization impulse?

CG: Charter schools are a very good case study for the impulse. Forget anti-unionism; forget whether or not they work, because they don't. But even if they did they are not cheaper. Charter schools are simply the transfer of public money to profit-making activity. That's the system they are steadily building -- prisons, schools, public parks, there's a conversion of the whole system into an investment of capital which is a major extension of what's always been true.

It's a way of government supporting the expenditure of money, but it has been organized so that it stays in private control. And in private control it's become increasingly privileged in how the decisions are made. So you've got hedge fund people now funding charter schools -- they are the largest engine behind charter schools. And so they care about education. Some of them even believe public schools are so bad we need this alternative.

But there's not a lot of thinking about about whether profit is compatible with learning. If profit is the major goal and keeping costs down is the major goal, then how do you have learning be the major goal? That's exactly the contradiction. If you're going to have learning be the major goal, you have to invest in it like you would a war. You don't in a war say the major goal is how to make profit and we'll only fight the war according to the profit.

DH: With the enormous investment in military arms, and more recently mercenaries, it seems like we are headed there.

CH: Well, that is one reason we have more war. But in the end you can't sell to the public that the measure of our success here is profit. And in education, were saying basically you can trust profit. The market will give you better results. There's no reason to believe that. The public hasn't accepted it, although it's getting pushed on them because of the power that's established in the state houses. Also, what's not well understood, is there are three kinds of charters. So the privatization has three identities and they're being merged. One is public school experiments with the charter system. The second is not-for-profit charters run by not-for-profit organizations are closer to the base. The third is the for-profit charter.

The first two models are perfectly fine. We have private schools and parochial schools which have tax exemptions so they're only quasi private. Those two forms are part of the American education fabric, so having another thing called charters wouldn't be a problem. It's nice to experiment with different forms of government organization and curriculum. But the for-profit charter is a very different entity and to allow it to be conflated with the other two is basically to let the Trojan horse in.

DH: As a longtime foundation executive, how has philanthropy exacerbated the progressive weakness?

CG: Foundations mostly gave money according to sociology or class, so people gave money to organizations led by people most like them, or slowly there was entry of people who were not like them but were being identified by people like them, and also very little money when you think about it. If you take the most successful community based organization in philanthropy at community based building level, it's probably SCOPE in Los Angeles.

And they went from a $5,000 grant to its founder from New World Foundation to a $3 million, maybe a $4 million budget, which took 25 years to get to. We have a number of very strong local and state organizations that have built powerful bases to influence local politics, pioneering such inventions as “living wage,” and “community benefits.” But to date this is a record of policy reform and some electoral victories for local leaders, all of which is very important. It is, however, not yet a coherent, comprehensive and compelling base for challenging the structural realignment of capitalism in our time.

DH: What are the consequences of that lack of a base to challenge the excesses of capitalism?

CG: So middle-income workers and people in impoverished communities are all under serious attack by this realignment, and are not yet organized in an aggressive agenda of their own within a worldview they share. I think there’s a sense that we have more to lose than to gain in such action at this time, but time may be running out on that one. Most people do have a certain level of freedom, they have a lot of harassment -- but they have a certain level of freedom. And for the average African American who is now 25 -- they have family that experienced the change so they are freer than they were.

They don't get off the street curb when they're coming up to a white person. They can be on the street with a white date or partner. There have been significant changes, not necessarily lasting changes, but changes that make you feel you've got something. The real danger is now that the economy can't produce the benefits it was producing, and the greed in capitalism has gone to such an extreme, that the Captains of capitalism seem not to be concerned about the social order dangers that the extreme inequalities create, which opens the gates to fascism.

When you have the a tyrannical crowd, you have the tendency to tyranny, you have the crowd behaving the way they did in those four Republican debates. So while they're only a minority, they're setting a tone. In the first debate nobody was willing to say that a dying child, a very ill child, should get medical care. In the second debate you've got cheering for the death penalty. In the third debate you've got the call to kill, for a young man who's on life support. And in the fourth debate the gay soldier is booed. So you've got this extreme hysteria that is not being challenged.

DH: So you can imagine serious political repression here in the USA? Where is the hope?

CG: I think we know what’s going to come down. I think people know. People are afraid. There's an implicit fear. And also there are moments when spontaneity breaks out. Who knows, we may be lucky enough that spontaneity e.g. at Occupy Wall Street that will help produce a social movement. And all that's been funded and developed will be ready to move. We don't have that now. There was a kind of serial violence that you couldn't have predicted, when Martin Luther King was assassinated. The Nuclear Freeze movement was not predictable when it suddenly flourished. You can't predict them. But it's obvious why after they happen.

So we don't know that we don't have the ground for something major to happen. In almost every state, strong organizations have been developed that might well be the basis for movement capacity when forces outside of their own terrain call them to new and unified action. If one looked at the black churches before the Civil Rights Movement flourishes of the 1960s, they probably would not have looked as strong one by one as they did when called to unified action. So too with their leaders. Indeed, so too with the Tea Party and right-wing movements. The external call for the latter has been heavy duty private money and a driving corporate agenda that is committed to reversing the deals it made since the 1930’s.

But what’s observable is the right has established an ideology and a worldview, a sense of what’s right and what’s wrong that has captured enough of public to dominate news with visible activism, and to paralyze public at large. That doesn't mean they can hold onto it, but that’s the phenomenon were facing. The economy has no ability to buy the public back into the equation. This recent disaster relief controversy is an example. We are unable to buy back into the equation of what looked like we had won forever -- that is the public good. We've lost a major piece of the ideology that was built over 40 or 50 years -- that we care about people in pain. If we don't have the ideolology that we care about people in pain as your basic ethical compass, then you have the kill mentality. Because we're always balancing between compassion and fear. If compassion doesn't dominate and you don't have resources to feel you can be compassionate without paying a high price yourself, then you're going to turn to fear to protect what you've got, or reach your hand out for what you can get.

I think the health care debate is an interesting case to consider in all this. Obviously, the social benefit is intrinsic to a progressive perspective. The kind of health care reform we’ve received is, for a variety of reasons, insufficient and insecure. Foundation funding for advancing public education and lobbying ran to the millions of dollars but it was all silo policy oriented and for the most part, top down. If that kind of money could have been used to help build a comprehensive foundational commitment to social welfare and organizational capacity, a partial achievement might well have helped produce a powerful movement advance.

DH: Does that loss of the moral compass, along with the fear, have to translate into passivity? How do we combat that?

CG: Well, I don't know that were not doing some of what is necessary. We have to reinvest in the ideology… lots of organizations have gotten lost in the idea that you have to invest in resurrecting belief in government. This is about messages. Elections may be fought on messages. Social movements are about consciousness. We have still to invest psychically, financially and organizationally in rebuilding a shared consciousness for a threshold number of Americans that is characterized in the idea that we want a compassionate society and that government is the best vehicle to deliver that.

One thing I didn't mention about the '80s that the assault on government that Reagan led, the left created earlier. We talked about problems of welfare system, about the ineffectiveness of the education system -- that was us. Cloward and Piven, me, everybody. We undermined that system. We didn't have a sense, probably because we were young, that you win a victory and then you evolve the maturity of that victory. We wanted it to be correct, and the right will suffer the same hubris -- they're moving way beyond their ideological reach, beyond the ability to deliver it.

DH: So, what happens in the interim? What about political repression?

CG: As Eric Cantor said, "People could starve." He said, "If you haven't saved for a rainy day yourself, that's your responsibility."

That's the opposite of compassion; that generates fear. And if you have violence on the street, they will have their own excuse for political repression. If there is an excess of even the right-wing on the street you could have the excuse of police intervention that looks like it's in public interest. But we have work to do, not least is to protect the moment. By that I mean, we should give serious thought about the impact of colluding in the electoral defeat of this president by undermining him publicly and reducing his viability as a candidate. The alternative is truly dangerous.

At the same time, we must think of ourselves in a political era that calls for breaking from the conventions of recent political discourse that has narrowed our social and political vision. It’s time to name what is happening in our country without hysteria, but to be clear that the next elections are part of a struggle for a social and cultural threshold that will determine the quality of life and democracy in this country.

And we need to keep in mind what's always been true in the politics of social movements -- they are the province of the young. Just look for example at how the brave young people in the Dream Act campaigns have actually won victories against inhumane ICE practices. They took and they take risks. Now, as other young people are stepping up to make powerful statements, take risks, try new tactics, they need our support and understanding.

Don Hazen is the executive editor of AlterNet.

Colin Greer is president of the New World Foundation in New York. Among his books is A Call to Character (HarperCollins, 1995).

Saturday, October 1, 2011

How Companies Plunder and Profit from the Nest Eggs of American Workers

AlterNet.org


How Companies Plunder and Profit from the Nest Eggs of American Workers

What really happened to the retirement benefits of millions of Americans at thousands of companies.

By Ellen Schultz


The following is an excerpt from Retirement Heist: How Companies Plunder and Profit From the Nest Eggs of Americans Workers, by Ellen E. Schultz by arrangement with Portfolio, a member of Penguin Group (USA), Inc., Copyright (c) Ellen E. Schultz, 2011.

In December 2010, General Electric held its Annual Outlook Investor Meeting at Rockefeller Center in New York City. At the meeting, chief executive Jeffrey Immelt stood on the Saturday Night Live stage and gave the gathered analysts and shareholders a rundown on the global conglomerate’s health. But in contrast to the iconic comedy show that is filmed at Rock Center each week, Immelt’s tone was solemn. Like many other CEOs at large companies, Immelt pointed out that his firm’s pension plan was an ongoing problem. The “pension has been a drag for a decade,” he said, and it would cause the company to lose 13 cents per share the next year. Regretfully, to rein in costs, GE was going to close the pension plan to new employees.

The audience had every reason to believe him. An escalating chorus of bloggers, pundits, talk show hosts, and media stories bemoan the burgeoning pension-and-retirement crisis in America, and GE was just the latest of hundreds of companies, from IBM to Verizon, that have slashed pensions and medical benefits for millions of American retirees. To justify these cuts, companies complain they’re victims of a “perfect storm” of uncontrollable economic forces—an aging workforce, entitled retirees, a stock market debacle, and an outmoded pension system that cripples their chances of competing against pensionless competitors and companies overseas.

What Immelt didn’t mention was that, far from being a burden, GE’s pension and retiree plans had contributed billions of dollars to the company’s bottom line over the past decade and a half, and were responsible for a chunk of the earnings that the executives had taken credit for. Nor were these retirement programs—even with GE’s 230,000 retirees—bleeding the company of cash. In fact, GE hadn’t contributed a cent to the workers’ pension plans since 1987 but still had enough money to cover all the current and future retirees.

And yet, despite all this, Immelt’s assessment wasn’t entirely inaccurate. The company did indeed have another pension plan that really was a burden: the one for GE executives. And unlike the pension plans for a quarter of a million workers and retirees, the executive pensions, with a $4.4 billion obligation, have always been a drag on earnings and have always drained cash from company coffers: more than $573 million over the past three years alone.

So a question remains: With its fully funded pension plan, why was GE closing its pensions?

That is one of the questions this book seeks to answer. Retirement Heist explains what really happened to GE’s pensions as well as to the retirement benefits of millions of Americans at thousands of companies. No one disputes that there’s a retirement crisis, but the crisis was no demographic accident. It was manufactured by an alliance of two groups: top executives and their facilitators in the retirement industry—benefits consultants, insurance companies, and banks—all of whom played a huge and hidden role in the death spiral of American pensions and benefits.

Yet, unlike the banking industry, which was rightly blamed for the subprime mortgage crisis, the masterminds responsible for the retirement crisis have walked away blame-free. And, unlike the pension raiders of the 1980s, who killed pensions to extract the surplus assets, they face no censure. If anything they are viewed as beleaguered captains valiantly trying to keep their overloaded ships from being sunk in a perfect storm. In reality, they’re the silent pirates who looted the ships and left them to sink, along with the retirees, as they sailed away safely in their lifeboats.

The roots of this crisis took hold two decades ago, when corporate pension plans, by and large, were well funded, thanks in large part to rules enacted in the 1970s that required employers to fund the plans adequately and laws adopted in the 1980s that made it tougher for companies to raid the plans or use the assets for their own benefit. Thanks to these rules, and to the long-running bull market that pumped up assets, by the end of the 1990s pension plans at many large companies had such massive surpluses that the companies could have fully paid their current and future retirees’ pensions, even if all of them lived to be 99 and the companies never contributed another dime.

But despite the rules protecting pension funds, U.S. companies siphoned billions of dollars in assets from their pension plans. Many, like Verizon, used the assets to finance downsizings, offering departing employees additional pension payouts in lieu of cash severance. Others, like GE, sold pension surpluses in restructuring deals, indirectly converting pension assets into cash.

To replenish the surplus assets in their pension piggy banks, companies cut benefits. Initially, employees didn’t question why companies with multi-billion-dollar pension surpluses were cutting pensions that weren’t costing them anything, because no one noticed their pensions were being cut. Employers used actuarial sleight of hand to disguise the cuts, typically by changing the traditional pensions to seemingly simple account-style plans.

Cutting benefits provided a secondary windfall: It boosted earnings, thanks to new accounting rules that required employers to put their pension obligations on their books. Cutting pensions reduced the obligations, which generated gains that are added to income. These accounting rules are the Rosetta Stone that explains why companies with massively overfunded pension plans went on a pension-cutting spree and began slashing retiree health benefits even when their costs were falling. By giving companies an incentive to reduce the liability on their books, the accounting rules turned retiree benefits plans into cookie jars of potential earnings enhancements and provided employers with the means to convert the trillion dollars in pensions and retiree benefits into an immediate, dollar-for-dollar benefit for the company.

With perfectly legal loopholes that enabled companies to tap pension plans like piggy banks, and accounting rules that rewarded employers for cutting benefits, retiree benefits plans soon morphed into profit centers, and populations of retirees essentially became portfolios of assets and debts, which passed from company to company in swirls of mergers, spin-offs and acquisitions. And with each of these restructuring deals, the subsequent owner aimed to squeeze a profit from the portfolio, always at the expense of the retirees.

The flexibility in the accounting rules, which gave employers enormous latitude to raise or lower their obligations by billions of dollars, also turned retiree plans into handy earnings-management tools.

Unfortunately for employees and retirees, these newfound tricks coincided with the trend of tying executive pay to performance. Thus, deliberately or not, the executives who green-lighted massive retiree cuts were indirectly boosting their own pay.

As their pay grew, managers and officers began diverting growing amounts into deferred-compensation plans, which are unfunded and therefore create a liability. Meanwhile, their supplemental executive pensions, which are based on pay, ballooned along with their compensation. Today, it’s common for a large company to owe its executives several billion dollars in pensions and deferred compensation.

These growing “executive legacy liabilities” are included in the pension obligations employers report to shareholders, and account for many of the “growing pension costs” companies are complaining about. Analysts, shareholders, and others don’t understand that executive obligations are no different from pension obligations for rank-and-file workers and retirees—they are governed by the same accounting rules, and they represent IOUs that a company has on its books. In some ways, executive liabilities are like public pensions: large, growing, and underfunded (or, as in the case of the executives, unfunded).

Unlike regular pensions, the growing executive liabilities are largely hidden, buried within the figures for regular pensions. So even as employers bemoaned their pension burdens, the executive pensions and deferred comp were becoming in some companies a bigger drag on profits.

To offset the impact of their growing executive liabilities on profits, many companies take out billions of dollars of life insurance on their employees, using the policies as informal executive pension funds and collecting death benefits when workers, former employees, and retirees die.

With the help of well-connected Washington lobbyists and leading law firms, over the past two decades employers have steadily used legislation and the courts to undermine protections under federal law, making it almost impossible for employees and retirees to challenge their employers’ maneuvers. With no punitive damages under pension law, employers face little risk when they unilaterally slash benefits, even when promised in writing, since they can pay their lawyers with pension assets and drag out the cases until the retirees give up or die.

As employers curtail traditional pensions, employees are increasingly relying on 401(k) plans, which have already proven to be a failure. Employees save too little, too late, spend the money before retiring, and can see their savings erased when the market nosedives.

But 401(k)s have other features that ensure that the plans, as they exist, will never benefit the majority of employees. The plans are supposed to provide a level playing field, the do-it-yourself retirement vehicle so perfect for an “ownership” society. But the game has been rigged from the beginning. Many companies use these plans as part of a strategy to borrow money cheaply, or in schemes to siphon assets from pension funds.

And just as the new accounting rules led to such mischief, so too did new anti-discrimination rules. Implemented in the 1990s, the rules were intended to ensure that employers didn’t use taxpayer-subsidized 401(k) plans for the favored few, but would make them available to a broad swath of workers. But thanks to the creativity of benefits consultants, employers have used the discrimination rules to shut millions of low-paid employees out of their plans and to provide them with less generous benefits, while enacting other restrictions that make the plans more valuable to managers and executives, at the expense of everyone else.

Today, pension plans are collectively underfunded, hundreds are frozen, and retiree health benefits are an endangered species. And as executive pay and executive pensions spiral, these executive liabilities are slowly replacing pension obligations on many corporate balance sheets.

Meanwhile, the same crowd that created this mess—employers, consultants, and financial firms—are now the primary architects of the “reforms” that will supposedly clean it up. Under the guise of improving retirement security, their “solutions” will enable employers to continue to manipulate retirement plans to generate profit and enrich executives at the expense of employees and retirees. Shareholders pay a price, too.

Their tactics haven’t served as case studies at Harvard Business School, and aren’t mentioned in the copious surveys and studies consultants produce for a gullible public. But the masterminds of this heist should take a bow: They managed to take hundreds of billions of dollars in retirement benefits that were intended for millions of workers and divert them to corporate coffers, shareholders, and their own pockets. And they’re still at it. It might not be possible to resuscitate pension plans, but it isn’t too late to expose the machinations of the retirement industry, which has its tentacles into every type of retirement benefit: profit-sharing plans, 401(k)s, employee stock ownership plans (ESOPs), and plans for public employees, nonprofits, small businesses, and even churches.

The retirement industry has exported its tactics, using them to achieve similar outcomes in retirement plans in Canada, Europe, Australia, and elsewhere, and has big plans for Social Security and its overseas equivalents as well. Unless it is reined in, the global retirement industry will continue to capture retirement wealth earned by many to enrich a relative few.

Ellen Schultz, an investigative reporter for the Wall Street Journal, has covered the retirement crisis for over a decade.


Monday, September 26, 2011

Why Privatization Is A Move Backwards

Dissident Voice: a radical newsletter in the struggle for peace and social justice


Privatization: A Move Backwards

Republicans, neo-conservatives and tea party fanatics are all clamoring for “privatization,” characterizing it as the panacea for America’s economic woes. And, as privatization moves forward rapidly in the United States, there has been no overall collective discussion among the citizens of this country as to whether we want it or not.

The corporate oligarchs, who have stolen the wealth of the entire country (and are hoarding it for their own benefit) love privatization, because, for them, it translates into the demise of governmental control and regulations affecting their businesses. They can act without any need for accountability or adherence to the responsibilities that come from government oversight.

With privatization, the billionaires can ignore the environmental impact of their actions, as well as the social implications of creating non-union, unregulated working conditions. For them, it’s similar to re-instituting slave labor, with the minimal wages and benefits needed to placate an unorganized workforce.

The goal is simple. As Naomi Klein describes this “rapid-fire privatization”:

First, governments must remove all rules and regulations standing in the way of the accumulation of profits. Second, they should sell off any assets they own that corporations could be running at a profit. And third, they should dramatically cut back funding of social programs.1

In short, for the super rich, privatization means that natural resources and human resources are controlled by the employer, and not by any public or community group. The only recourse individuals have for corporate abuse is to quit working for a particular employer, and seek employment from another tyrant, who most likely shares the same power and control as the first employer.

It is obvious why the oligarchs are fighting tooth and nail for privatization. But why in the world would anybody but the rich support such a system?

There are three possible reasons why the average American might assist the oligarchs in obtaining their goals:

1) The working class has been duped into believing that bureaucratic structures and governmental waste is the source of our crumbling economy. This theory suggests that if it weren’t for Washington insiders, the distribution of wealth in the country would not be so unbalanced and unfair, but would reflect the healthy growth associated with Apple, Exxon and Google.

2) America’s white working class has been persuaded by the oligarchs and their lapdogs in the media that minorities, foreigners, the unemployed and the mentally infirm are the cause of the failing economy; therefore, the theory goes, assistance provided to any of these groups threatens the economic security of working people. The only solution oligarchs put forth is to cut all social services and benefits to anybody but the rich.

3) A third significant factor is that the oligarchs have so devastated our natural resources and economy that the working class is barely surviving. Again, people who are struggling to survive hunt for scapegoats, and it points towards the weak and the dispossessed — not towards the rich and powerful. Working people look in the wrong direction for solutions to their problems.

What is so pathetic about this particular moment in history is that the drive for privatization is the worst possible solution for our problems. In fact, it will result in even more chaos and poverty for the great majority of our people. There are several reasons for this:

1) A healthy economy requires a healthy, educated populace. Because this is so, public education should be free, and a right for all. Instead of making a college education so expensive that it is a form of indentured servitude, it should be the responsibility of the state to make it available to all who can participate.

2) Similarly, a healthy population is a mentally and physically productive one. Health care should be the responsibility of the government, and 100% of the population should be protected by our health care system. An unhealthy population is unable to support itself.

3) Those who want to work and are able to do so should be assured of a job. Their employment should not depend upon the whims of a corporate oligarch, who is seeking to maximize profits; but rather, the representatives of the entire society who benefit from full employment.

4) A just society protects its citizens, and finds the best possible alternatives for those unable to work and live independently. Corporate oligarchs couldn’t care less about people who don’t bring them profit. But the society needs to nurture and assist those who, for any number of reasons, are unable to remain productive members of society. We don’t euthanize the elderly, the sick and the weak, simply because they can’t find employment at the local Walmart. Instead, a strong nation does its best to protect this segment of the population.

The underpinnings of why privatization is so counter-productive is that the resources of the entire nation should be in the hands of the majority, whose motivation for action is the collective need, and not in the hands of oligarchs, whose motives revolve around profit and personal aggrandizement. It is the government, and not corporate oligarchs, who recognize the waste and implications of short-term profit over long-term needs. Decisions about the allocation of resources, full employment, health and educational benefits should lie in the hands of the citizenry, and not as the personal property of a select few.

When one reviews the history of privatization throughout world history, one sees those institutions and periods in which that theory thrived: the feudal ages, private kingdoms, and ruling dynasties. Unfortunately, the direction of the future points to “privatization” as a right of an anointed royalty, and not of the people, who would seek to place the needs of all and the wealth of the nation in the hands of the many, and not the few.

  1. Klein, Naomi, The Shock Doctrine, Metropolitan Books, NY, 2007, p. 57 []

Luke Hiken is an attorney who has engaged in the practice of criminal, military, immigration, and appellate law. Marti Hiken is the director of Progressive Avenues. She is the former associate director of the Institute for Public Accuracy and former chair of the National Lawyers Guild Military Law Task Force. Read other articles by Marti Hiken and Luke Hiken, or visit Marti Hiken and Luke Hiken's website.

Friday, September 2, 2011

U.S. Awash in Oil and Lies, Report Charges

CommonDreams.org

Published on Friday, September 2, 2011 by Inter Press Service

With four times as many oil rigs pumping domestic oil today than eight years ago and declining domestic demand, the United States is awash in oil. In fact, the U.S. exports more oil than it imports, according to the U.S. Energy Information Administration - and has done so for nearly two decades.

The country's oil industry is primarily interested in who will pay the most on the global marketplace. They call that "energy security" when it suits, but in reality it is "oil company security" through maximizing profits, say energy experts like Steve Kretzman of Oil Change International, an NGO that researches the links between oil, gas and coal companies and governments.



A young woman holds a sign in front of the white house urging President Obama to reject the keystone pipeline. She was joined by 46 others who engaged in civil disobedience and were arrested on August 25th, 2011. (photo: Milan Ilnyckyj / Tar Sands Action)

The only reason U.S. citizens may be forced to endure a risky, Canadian-owned oil pipeline called Keystone XL is so oil companies with billion-dollar profits can get the dirty oil from Canada's tar sands down to the Gulf of Mexico to export to Europe, Latin America or Asia, according to a new report by Oil Change International released Wednesday.

"Keystone XL will not lessen U.S. dependence on foreign oil, but rather transport Canadian oil to American refineries for export to overseas markets," concludes the report, titled "Exporting Energy Security".

Little of the 700,000 to 800,000 barrels of tar sands oil pumped through the 2,400-kilometre, seven-billion-dollar Keystone XL will end up in U.S. gas tanks because the refineries on the Gulf Coast are all about expanding export markets. One huge refinery operator called Valero has been touting the potential export revenues of tar sands oil to investors, the report found.

Because Keystone XL crosses national borders, President Barack Obama has to issue a permit declaring the pipeline serves the "national interest" in order to be approved.

"The only way Keystone XL could be considered in the national interest is if you equate that with profits for the oil industry," said Kretzman, who wrote the report.

Canada's huge tar sands deposits, located mainly in the far north of the province of Alberta, are the world's second largest oil reserves, but they are landlocked. It's the industry's biggest worry and also Alberta Energy Minister Ron Lieper's biggest concern.

Lieper recently said that without new pipelines "our greatest risk in Alberta is that by 2020 we will be landlocked in bitumen". Bitumen is thick tarry oil from the tar sands that needs lots of high-energy and chemical processing to be useable - one reason it's widely considered the world's dirtiest oil.

The shortest route to the big Asian markets is through the Rocky Mountains to Canada's west coast via the proposed Northern Gateway pipeline. However, Canadian native people live on some of the land and are staunchly opposed, so the industry thought it would be easier to put an export pipeline right through the U.S. heartland, said Kretzman.

"The oil industry would have done the Northern Gateway first but gambled that resistance to the pipeline would be far weaker in the mid-west," he told IPS.

They were wrong.

Thousands of people, including landowners and religious leaders, have gone to Washington DC in the past two weeks to tell President Obama to reject Keystone. Nearly 850 people have been arrested for standing on the sidewalk in front of the White House in what protesters call the largest civil disobedience in the history of the U.S. climate movement.

"It's remarkable, a very dignified and moving protest much like the civil rights demonstrations in the 1960s," said Maude Barlow, chairperson of the Council of Canadians, a large environmental NGO.

"This is about the rights of the environment and future generations. It is the blossoming of a new movement," Barlow told IPS from Washington.

Other massive pipelines are being planned, including ones bringing tar sands crude to New England and the Great Lakes, she said. "Keystone is just the beginning. Once these are built they will have to put something in them."

Infrastructure dictates policy, she stressed. Once pipelines, refineries or power plants are built, it is nearly impossible for governments to shut them down.

Last year, scientists writing in the journal Science concluded there is already enough fossil fuel burning capacity to raise global temperatures by 1.5 degrees C by 2060. Any additional power plants, vehicles, or other fossil fuel burning equipment built from 2011 onward puts humanity at ever greater risk of catastrophic climate change.

"We conclude that sources of the most threatening emissions have yet to built," the scientists wrote.

The Obama administration knows this but the powerful oil lobby can use its unlimited funds to attack Democratic officials during the next election cycle if they don't approve the pipeline, says Kretzman.

Changes to U.S. law in 2010 allow corporations to spend as much as they want on elections, and there is no sector with more money than the oil industry.

"That scares the hell out of the Obama administration," he said.

It's never been clearer that corporations wield the real power in the United States and Canada, activists say.

"This is the beginning of a very big fight for the future," Barlow told IPS.


So Much for the Polar Bears - Arctic Drilling to Begin


Latest Oil, Gas and INvestor news; Oil Price.com




So Much for the Polar Bears - Arctic Drilling to Begin

Written by John Daly
Thursday, 01 September 2011 13:59

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The “good” news for wildlife around the Arctic Circle is that BP, renowned despoiler of the Gulf of Mexico, will not be coming.

BP’s 2010 Deepwater Horizon oil spill (also referred as the Macondo blowout), which surged for three months, has won a place in the Guinness book of records as the largest accidental marine oil spill in the history of the petroleum industry.

The bad news is that U.S. oil international Exxon Mobil has sealed an Arctic oil exploration deal with Russia’s state-owned oil firm Rosneft, following an agreement signed on 29 August in the presence of Russian Prime Minister Vladimir Putin.

Proving that the Cold War is well and truly dead, at least for multinationals, Putin gushed, "New horizons are opening up. One of the world's leading companies, Exxon Mobil, is starting to work on Russia's strategic shelf and deepwater continental shelf. The potential oil fields are some of the largest in circumpolar Arctic offshore area.

The contract stipulates that Exxon Mobil and Rosneft will jointly spend $3.2 billion on deepwater exploration in the Russian federation’s East Prinovozemelskii region of the Kara Sea.

Of course, Exxon Mobil did not walk away empty-handed, as the agreement also allows it to begin oil prospecting in the Black Sea. And Rosneft, pushing away from the casino table, will be permitted to develop fields in the Gulf of Mexico and Texas.

Last but not least, the two companies will also cooperate on the development of oil fields in Western Siberia, where production has been in decline for more than a decade.

But let’s get back to the Kara Sea for a moment.

Sandwiched between Novaiia Zemliia island and the Severnaia Zemliia archipelago, compared to its western neighbor, Compared to the Barents Sea, which receives warm Atlantic currents, the Kara Sea is much colder because of its isolation, remaining frozen for over nine months a year. The ice-locked sea is navigable only during August and September.

Furthermore, as the Kara Sea receives a vast amount of freshwater from the northwards flowing Siberian Ob, Yenisei, Pyasina, and Taimyra rivers, its salinity is variable, introducing yet another hydrological element of uncertainty into the proposed exploration.

Of course, what’s a few oil spills amongst comrades? After all, Russian environmentalist groups have protested for years that Russia’s Arctic regions were used as isolated dumping grounds for nuclear waste, and according to a March 1993 Russian Federation government official White Paper" between 1965-1988 the Soviet Union dumped six nuclear submarine reactors and ten nuclear reactors into the Kara Sea, along with solid high- and low-level wastes unloaded from Northern Fleet nuclear submarines. What are a few errant hydrocarbons gonna do admixed with some becquerels?

In an eerie echo of insistent Republican choruses of “drill, baby drill” for Alaska’s Arctic National Wildlife Refuge (ANWR), the proposed Kara Sea operations will impact the Russian Federation’s Great Arctic State Nature Reserve, the nation’s largest and in fact, the most massive in all of Europe, which was established in May 1993 by Resolution No.431 of the Russian Federation government. The Kara Sea reserve elements included the Sergei Kirov Archipelago, Voronina Island, the Izvestiy TSIK Islands, the Arctic Institute Islands, Svordrup Island, Uedineniya Island and a number of smaller islands.

And how will that precious oil be transported?

By tanker, of course.

In this regard, consider a report by Russian environmental Group Bellona about the 16 March 2009 incident where the nuclear-powered icebreaker Yamal collided with the 16.168 ton tanker Indiga during ice escort duty in the Kara Sea, which was shuttling between the oil terminal in the Gulf of Ob and the floating oil storage vessel Belokamenka in the Kola Bay. The Indiga suffered a 31foot-long crack on its main deck from the impact of the collision, but fortunately the tanker was only carrying ballast at the time.

The Kara Sea oil exploration concept is one of those ideas that look good in boardrooms but bad in reality. The severe climate, combined with the difficulties of oil transport, should give pause to all except those inhaling seven figure salaries and three martini lunches. And never mind the fact that the waters contain some of the world’s richest fishing grounds.

The Exxon Mobil-Rosneft alliance has the tacit blessing of both the U.S. and Russian governments, so it will more than likely go forward.

Offshore drilling comes with attendant risks unlike land-based exploration, which the Macondo blowout proved. If it took BP three months to shut down its well in the relatively shallow and warm waters of the gulf of Mexico, then how do Exxon Mobil and Rossneft propose to deal with a similar incident in waters several hundred miles south of the Arctic Circle that are frozen for all but two months of the year?

Guess we’ll find out.

Good thing that polar bears can’t vote, but then, they’re an endangered species anyway, so even if they could, there are too few to matter.

By. John C.K. Daly of OilPrice.com


Tuesday, August 30, 2011

How Corporate and Political Forces Have Almost Neutralized All Avenues of Resistance in US Culture

AlterNet.org


NEWS & POLITICS

The only commodity our state offers is fear.

Early voting in Florida.

We have begun the election march of the trolls. They have crawled out of the sewers of public relations firms, polling organizations, the commercial media, the two corporate political parties and elected office to fill the airwaves with inanities and absurdities until the final inanity—the 2012 presidential election. Journalists, whose role has been reduced to purveyors of court gossip, whether on Fox or MSNBC, descend in swarms to report pseudo-events such as the Ames straw poll, where it costs $30 to cast a ballot. And then, almost immediately, they blithely inform us that the Iowa poll is meaningless now that Rick Perry has entered the race. The liberal trolls, as they do in every election cycle, are beating their little chests about the perfidiousness of the Democratic Party and Barack Obama. It is a gesture performed not to effect change but to burnish their credentials as moralists. They know, as do we, that they will trot obediently into the voting booth in 2012 to do as they are told. And everywhere the pulse of the nation is being assiduously monitored through polls and focus groups, not because our opinions matter, but because our troll candidates understand that by parroting back to us our own viewpoints they can continue to spend their days lapping up corporate money with other trolls in the two houses of Congress, the White House, the Supreme Court and television studios where they chat with troll celebrity journalists.

The only commodity the troll state offers is fear. The corporate trolls, such as the Koch brothers, terrify the birthers, creationists, militia lovers, tea party militants, right-to-life advocates, Christian fascists and God-fearing red-white-and-blue patriots by proclaiming that, unless they vote for Perry or Mitt Romney or Michele Bachmann or some other product of the lunatic fringe of our political establishment, the American family will be destroyed, our children will be corrupted and the country will turn socialist. Barack Obama, who they whisper is a closet Muslim, will take away their guns, raise their taxes and bring homosexual couples into kindergartens.

For those, usually liberals, still rooted in a reality-based world, one that believes in evolutionary science, the corporate trolls offer a more refined, fear-based message of impending doom. If you abandon the Democrats we will be governed by Bible-thumping idiots who will make us chant the Pledge of Allegiance in mass rallies and teach the account of Genesis as historical and biological fact in our nation’s schools.

And underneath it all runs the mantra chanted in unison by all the trolls—terror, terror, terror. The troll establishment spins us like windup dolls and laughs all the way to the bank. What idiots, they think. And every election cycle we prove them right.

“The only people who grasp the distinction between reality and appearance, who grasp the laws of conduct and society, are the ruling groups and those who do their bidding; scientific, technical elites who elucidate the laws of behavior and the functions of society so that people might be more effectively, albeit unconsciously, governed,” wrote James W. Carey in “Communication as Culture.”

The trolls dominate or have neutralized every major institution in the country on behalf of their corporate paymasters. The press, education, Wall Street, labor and our political parties are managed by trolls or have been destroyed by them. Sometimes these trolls speak like liberals. Sometimes they speak like conservatives. Sometimes they are secular. Sometimes they are Christians. But the language they use is a cover for the relentless march toward a totalitarian capitalism and a kingdom where the trolls, if not the rest of us, live happily ever after. Rick Perry and John Boehner overtly make war on Social Security. Barack Obama and Nancy Pelosi say they would like to save Social Security but are sadly powerless before the decisions of a congressional super committee they helped form. The result, of course, is the same. We get to choose the rhetoric and manner in which we are deceived and disempowered. Nothing more.

All cloying appeals to the Obama administration to use stimulus money to build public works such as schools, libraries, roads, clinics, public transit and reclaiming dams, as well as to create jobs, are about as effective as writing heartfelt appeals in the era of the old Soviet Union to Uncle Joe Stalin. The trolls have gamed the system. There is no economic, political or environmental reform, from campaign finance to environmental controls, that can be implemented to impede the march of the corporate state. The rot and corruption at the top levels of our financial and political systems, coupled with the increasing deprivation felt by tens of millions of Americans, are volatile tinder for revolt. And the trolls are prepared for this too. They have put in place draconian state controls, including widespread internal surveillance, to silence our anemic left. They know how to direct the rage of the right wing toward the last pockets of the cultural, social and political establishment that cling to traditional liberal values, as well as toward the most vulnerable among us including Muslims, undocumented workers and homosexuals. They will make sure we consume ourselves.

A society is in serious trouble when its political pariahs have at the core of their demands a return to the rule of law. This inversion, with our political and cultural outcasts demanding a respect for law, highlights the awful fact that the most radical and retrograde forces within the body politic have seized control. These forces demand that we serve the dictates of the marketplace. They are destroying all legal impediments to corporate exploitation and profit, as well as dismantling the regulatory agencies that once protected the citizen. They defend torture, offshore penal colonies, black sites and kidnapping (they call it “extraordinary rendition”) of state enemies. They protect and abet financial fraud. They wage pre-emptive war. They refuse to restore habeas corpus. Without warrants, they monitor, eavesdrop on and wiretap tens of millions of citizens. They order the assassination of U.S. citizens. They deny due process. They give corporations the status of persons. They ignore the suffering of the unemployed and the poor, slashing basic social service programs while doling out hundreds of billions in taxpayer funds to corporations. On these key issues, the only ones that really matter, there is no disagreement among trolls from either the self-identified left or the self-identified right. All their public disputes in the election cycle are a carnival act.

All conventional forms of dissent, from electoral politics to open debates, have been denied us. We cannot rely on the institutions that once made piecemeal and incremental reform possible. The only route left is to disconnect as thoroughly as possible from the consumer society and engage in acts of civil disobedience and obstruction. The more we sever ourselves from the addictions of fossil fuel and the consumer society, the more we begin to create a new paradigm for community. The more we engage in physical acts of defiance—as Bill McKibben and others did recently in front of the White House to protest the building of the Keystone XL pipeline, which would increase the flow of “dirty” tar sands oil from Alberta, Canada, to refineries on the Gulf of Mexico—the more we can keep alive a new, better way of relating to each other and the ecosystem.

Most important, we must stop being afraid. We have to turn our backs for good on the Democrats, no matter what ghoulish candidate the Republicans offer up for president. We have to defy all formal systems of power. We have to listen closely to the moral voices in our society, from McKibben to Noam Chomsky to Wendell Berry to Ralph Nader, and ignore feckless liberals who have been one of the most effective tools of our disempowerment. We have to create monastic enclaves where we can retain and nurture the values being rapidly destroyed by the wider corporate culture and build the mechanisms of self-sufficiency that will allow us to survive. The corporate coup is over. We have lost. The trolls have won. We have to face our banishment.

In William Shakespeare’s play “Coriolanus” the Roman consul is deposed by the mob. Coriolanus, whatever his faults, turns on those who thrust him from power to declare a valediction we should deliver to our class of ruling trolls and all those who remain in their embrace.

Brutus:
There’s no more to be said, but he is banish’d,
As enemy to the people and his country:
It shall be so.

Citizens:
It shall be so, it shall be so.

Coriolanus:
You common cry of curs! whose breath I hate
As reek o’ the rotten fens, whose loves I prize
As the dead carcasses of unburied men
That do corrupt my air, I banish you;
And here remain with your uncertainty!
Let every feeble rumour shake your hearts!
Your enemies, with nodding of their plumes,
Fan you into despair! Have the power still
To banish your defenders; till at length
Your ignorance, which finds not till it feels,
Making not reservation of yourselves,
Still your own foes, deliver you as most
Abated captives to some nation
That won you without blows! Despising,
For you, the city, thus I turn my back:
There is a world elsewhere.

Chris Hedges, a Pulitzer Prize-winning reporter, is a senior fellow at the Nation Institute. He writes a regular column for TruthDig every Monday. His latest book is Empire of Illusion: The End of Literacy and the Triumph of Spectacle.

Saturday, August 27, 2011

3 Things That Must Happen for Us To Rise Up and Defeat the Corporatocracy


AlterNet.org

NEWS & POLITICS  
Most Americans oppose rule by the corporatocracy but don't have the tools to fight back. Here are three things we need to create a real people's movement. 

Transforming the United States into something closer to a democracy requires: 1) knowledge of how we are getting screwed; 2) pragmatic tactics, strategies, and solutions; and 3) the “energy to do battle.”
The majority of Americans oppose the corporatocracy (rule by giant corporations, the extremely wealthy elite, and corporate-collaborator government officials); however, many of us have given up hope that this tyranny can be defeated. Among those of us who continue to be politically engaged, many focus on only one of the requirements—knowledge of how we are getting screwed. And this singular focus can result in helplessness. It is the two other requirements that can empower, energize, and activate Team Democracy— a team that is currently at the bottom of the standings in the American Political League.

1. Knowledge of How We are Getting Screwed

Harriet Tubman conducted multiple missions as an Underground Railroad conductor, and she also participated in the Union Army’s Combahee River raid that freed more than 700 slaves. Looking back on her career as a freedom fighter, Tubman noted, “I freed a thousand slaves. I could have freed a thousand more if only they knew they were slaves.” While awareness of the truth of corporatocracy oppression is by itself not sufficient to win freedom and justice, it is absolutely necessary.

We are ruled by so many “industrial complexes”—military, financial, energy, food, pharmaceutical, prison, and so on—that it is almost impossible to stay on top of every way we are getting screwed. The good news is that—either through independent media or our basic common sense—polls show that the majority of Americans know enough about the Afghanistan and Iraq wars, Wall Street bailouts, and other corporate welfare to oppose these corporatocracy policies. In the case of the military-industrial complex, most Iraq War polls and Afghanistan War polls show that the majority of Americans know enough to oppose these wars. And when Americans were asked in a CBS New /New York Times survey in January 2011 which of three programs—the military, Medicare or Social Security—to cut so as to deal with the deficit, fully 55 percent chose the military, while only 21 percent chose Medicare and 13 percent chose Social Security.
In the words of Leonard Cohen, “Everybody knows that the deal is rotten.” Well, maybe not everybody, but damn near everybody.

But what doesn’t everybody know?

2. Pragmatic Tactics, Strategies and Solutions

In addition to awareness of economic and social injustices created by corporatocracy rule, it is also necessary to have knowledge of strategies and tactics that oppressed people have historically used to overcome tyranny and to gain their fair share of power.

Even before the Democratic-Republican bipartisan educational policies (such as “no child left behind” and “race to the top”) that cut back on civics being taught in schools, few Americans were exposed in their schooling to “street-smart civics”—tactics and strategies that oppressed peoples have historically utilized to gain power.

For a comprehensive guide of tactics and strategies that have been effective transforming regimes more oppressive than the current U.S. one, read political theorist and sociologist Gene Sharp’s From Dictatorship to Democracy, which includes nearly 200 “Methods of Nonviolent Actions.” Among Sharp’s 49 “Methods of Economic Noncooperation,” he lists over 20 different kinds of strikes. And among his 38 “Methods of Political Noncooperation,” he lists 10 tactics of “citizens’ noncooperation with government,” nine “citizens’ alternatives to obedience,” and seven “actions by government personnel.” Yes, nothing was more powerful in ending the Vietnam War and saving American and Vietnamese lives than the brave actions by critically thinking U.S. soldiers who refused to cooperate with the U.S. military establishment. Check out David Zeigler’s documentary Sir! No Sir! for details.

For a quick history lesson on “the nature of disruptive power” in the United States and the use of disruptive tactics in fomenting the American Revolution, the abolitionist movement, the labor movement, and other democratic movements, check out sociologist Frances Fox Piven’s Challenging Authority: How Ordinary People Change America. Piven describes how “ordinary people exercise power in American politics mainly at those extraordinary moments when they rise up in anger and hope, defy the rules that ordinarily govern their daily lives, and, by doing so, disrupt the workings of the institutions in which they are enmeshed.” In the midst of the Great Depression when U.S unemployment was over 25 percent, working people conducted an exceptional number of large labor strikes, including the Flint, Michigan sit-down strike, which began at the end of 1936 when auto workers occupied a General Motors factory so as to earn recognition for the United Auto Workers union as a bargaining agent. That famous victory was preceded and inspired by other less well-known major battles fought and won by working people. Check out the intelligent tactics (and guts and solidarity) in the 1934 Minneapolis Truckers Strike.

For an example of “the nature of creative power” that scared the hell out of—and almost triumphed—over the moneyed elite, read The Populist Moment by historian Lawrence Goodwyn. The Populist movement, the late-19th-century farmers’ insurgency, according to Goodwyn, was the largest democratic movement in American history. These Populists and their major organization, commonly called the “Alliance,” created worker cooperatives that resulted in empowering economic self-sufficiency. They came close to successfully transforming a good part of the United States into something a lot closer to a democracy. As Goodwyn notes, “Their efforts, halting and disjointed at first, gathered form and force until they grew into a coordinated mass movement that stretched across the American continent ... Millions of people came to believe fervently that the wholesale overhauling of their society was going to happen in their lifetimes.”

In Get Up, Stand Up, I include the section “Winning the Battle: Solutions, Strategies, and Tactics.” However, a major point of the book is that, currently in the United States, even more ignored than street-smart strategies and tactics is the issue of morale, which is necessary for implementing these strategies and tactics. So, I also have a section “Energy to Do Battle: Liberation Psychology, Individual Self-Respect, and Collective Self-Confidence.”

3. The Energy to Do Battle

The elite’s money—and the influence it buys—is an extremely powerful weapon. So it is understandable that so many people who are defeated and demoralized focus on their lack of money rather than on their lack of morale. However, we must keep in mind that in war, especially in a class war when one’s side lacks financial resources, morale becomes even more crucial.

Activists routinely become frustrated when truths about lies, victimization and oppression don’t set people free to take action. But having worked with abused people for more than 25 years, it doesn’t surprise me to see that when we as individuals or a society eat crap for too long, we become psychologically too weak to take action. There are a great many Americans who have been so worn down by decades of personal and political defeats, financial struggles, social isolation and daily interaction with impersonal and inhuman institutions that they no longer have the energy for political actions.

Other observers of subjugated societies have recognized this phenomenon of subjugation resulting in demoralization and fatalism. Paulo Freire, the Brazilian educator and author of Pedagogy of the Oppressed, and Ignacio Martin-Baró, the El Salvadoran social psychologist and popularizer of “liberation psychology,” understood this psychological phenomenon. So did Bob Marley, the poet laureate of oppressed people around the world. Many Americans are embarrassed to accept that we, too, after years of domestic corporatocracy subjugation, have developed what Marley called “mental slavery.” Unless we acknowledge that reality, we won’t begin to heal from what I call “battered people’s syndrome” and “corporatocracy abuse” and to, as Marley urges, “emancipate yourself from mental slavery.”

Whether one’s abuser is a spouse or the corporatocracy, there are parallels when it comes to how one can maintain enough strength to be able to free oneself when the opportunity presents itself—and then heal and attain even greater strength. This difficult process requires honesty that one is in an abusive relationship. One should not be ashamed of having previously believed in corporatocracy lies; and it also helps to forgive and have compassion for those who continue to believe them. The liars we face are often quite good at lying. It helps to have a sense of humor about one’s predicament, to nurture respectful relationships, and to take advantage of a lucky opportunity—often created by the abuser’s arrogance— when it presents itself.
For democratic movements to have enough energy to get off the ground, certain psychological and cultural building blocks are required. Goodwyn, from his study of the Populists in the United States, Solidarity in Poland, and other democratic movements, concluded that “individual self-respect” and “collective self-confidence” constitute the cultural building blocks of mass democratic politics. Without individual self-respect, people do not believe that they are worthy of power or capable of utilizing power wisely, and they accept as their role being a subject of power. Without collective self-confidence, people do not believe they can succeed in wresting power away from their rulers. There are “democracy battlefields” —in our schools, workplace and elsewhere—where such respect and confidence can be regained every day.
No democratic movement succeeds without determination, courage, and solidarity, but modern social scientists routinely ignore such nonquantifiable important variables, and so those trained only in universities and not on the streets can, as Martin-Baró pointed out, “become blind to the most important meanings of human existence.” Great scientists recognize just how important nonquantifable variables are in certain areas of life. A sign hanging in Albert Einstein’s office at Princeton stated: not everything that can be counted counts, and not everything that counts can be counted.

The battle against the corporatocracy needs critical thinking, which results in seeing some ugly truths about reality. This critical thinking is absolutely necessary. Without it, one is more likely to engage in tactics that can make matters worse. But critical thinking also means the ability to think critically about one’s pessimism—realizing that pessimism can cripple the will and destroy motivation. A critical thinker recognizes how negativism can cause inaction, which results in maintaining the status quo. Antonio Gramsci (1891–1937), an Italian political theorist and Marxist activist who was imprisoned by Mussolini, talked about “pessimism of the intellect, optimism of the will” —a phrase that has inspired many critical thinkers, including Noam Chomsky.
Can one have hope without being an insipid Pollyanna? Until shortly before it occurred, the collapse of the Soviet empire seemed an impossibility to most Americans, who saw only mass resignation within the Soviet Union and its sphere of control. But the shipyard workers in Gdansk, Poland, did not see their Soviet and Communist Party rulers as the all-powerful forces that Americans did. And so Polish workers’ Solidarity, by simply refusing to go away, provided a strong dose of morale across Eastern Europe at the same time other historical events weakened the Soviet empire.

Today in Iceland, citizens have refused to acquiesce to the demands of global financial institutions, simply refusing to be taxed for the mistakes of the financial elite that caused their nation’s recent financial meltdown. In a March 2010 referendum in Iceland, 93 percent voted against repayment of the debt, and Icelandic citizens have been drafting a new constitution that would free their country from the power of international finance (this constitution will be submitted to parliament for approval after the next elections). Yes, participatory democracy is still possible.

The lesson from the 2011 Arab spring in and other periods of history is that tyrannical and dehumanizing institutions are often more fragile than they appear, and with time, luck, morale, and our ability to seize the moment, damn near anything is possible. We never really know until it happens whether or not we are living in that time when historical variables are creating opportunities for seemingly impossible change. Thus, we must prepare ourselves by battling each day in all our activities to regain individual self-respect, collective self-confidence, determination, courage, and solidarity.

Bruce E. Levine is a clinical psychologist and author of Get Up, Stand Up: Uniting Populists, Energizing the Defeated, and Battling the Corporate Elite  (Chelsea Green, 2011). His Web site is www.brucelevine.net.