Breaking it Down: Industrial Capitalism vs. Financial Capitalism (or, Why We’re F*cked)

Michael Hudson asks: “In light of the enormous productivity gains since the end of World War II – and especially since 1980 – why isn’t everyone rich and enjoying the leisure economy that was promised?”

The answer (per Hudson) is painfully obvious, but bears repeating (ad infinitum):

What was applauded as a post-industrial economy has turned into a financialized economy. The reason you have to work so much harder than before, even when wages rise, is to carry your debt overhead. You’re unable to buy the goods you produce because you need to pay your bankers. And the only way that you can barely maintain your living standards is to borrow even more. This means having to pay back even more in years to come.

That is the Eurozone plan in a nutshell for its economic future. It is a financial plan that is replacing industrial capitalism – with finance capitalism.

Industrial capitalism was based on increasing production and expanding markets. Industrialists were supposed to use their profits to build more factories, buy more machinery and hire more labor. But this is not what happens under finance capitalism. Banks lend out their receipt of interest, fees and penalties (which now yield credit card companies as much as interest) in new loans.

The problem is that income used to pay debts cannot simultaneously be used to buy the goods and services that labor produces. So when wages and living standards do not rise, how are producers to sell – unless they find new markets abroad? The gains have been siphoned off by finance. And the financial dynamic ends up in austerity.

And to make matters worse, it is not the fat that is cut. The fat is the financial sector. What is cut is the bone: the industrial sector. So when writers refer to a post-industrial economy led by the banks, they imply deindustrialization. And for you it means unemployment and lower wages.

As they say, read the whole damn thing.

And weep.

h/t

(Image: jesse.millan, Flickr)

Dueling Ledes (Compare & Contrast)

TorStar, March 20th:

Schools, hospitals and popular burger restaurants such as Hero’s and Lick’s are part of a suddenly massive beef recall over fears of E. coli contamination.

The G&M, today:

Veterinarians and other inspectors responsible for food recalls and ensuring the safety of Canadian meat are among the hundreds of federal public servants who will be told this week their jobs are at risk.

Apparently the Harpercons figure it will be measurably easier to tighten our belts if our bellies have all imploded from E. coli poisoning.

Image: Vanessa Pike-Russell, Flickr. Used under CC license.

Fun With Infographics (STILL Worst Preznit EVA)

by matttbastard

Michael Tomasky:

The Boston Globe ran a chart last Sunday that I’d buy billboard space to reproduce in every decent-size city in America, if I were running the Democratic National Committee. The premise of it was very simple: It showed how many trillions each president since Ronald Reagan has added to the nation’s debt. The debt was about $1 trillion when Reagan took office, and then: Reagan, $1.9 trillion; George H.W. Bush, $1.5 trillion (in just four years); Bill Clinton, $1.4 trillion; Obama, $2.4 trillion.

Oh, wait. I skipped someone. George W. Bush ran up $6.4 trillion. That’s nearly half—44.7 percent—of the $14.3 trillion total. We all know what did it—two massive tax cuts geared toward the rich (along with other similar measures, like slashing the capital gains and inheritance taxes), the off-the-books wars, the unfunded Medicare expansion, and so on. But the number is staggering and worth dwelling on. In a history covering 30 years, nearly half the debt was run up in eight. Even the allegedly socialist Obama at his most allegedly wanton doesn’t compare to Dubya; and Obama’s debt numbers, if he’s reelected, will surely not double or even come close as we gambol down Austerity Lane.

On a related note, if the allegedly socialist Obama is pretty much toast in 2012, as dnA argues, what happens if the GOP decides to double down on the Evangelical Jesus Juice and storm the White House with “George W. Bush on Steroids” at the point?

ON STEROIDS.

PS: WORST PREZNIT EVA.

Sarah Palin, Fauxpulism, and Right-Wing Identity Politics

by matttbastard

(Image: Tacoma Urbanist, Flickr)

Sarah Palin is back — and, seemingly, everywhere, as she launches a book tour (and, perhaps, a run at the White House in 2012).

Max Blumenthal:

In a Republican Party hoping to rebound in 2010 on the strength of a newly energized and ideologically aroused conservative grassroots, Palin’s influence is now unparalleled. Through her Facebook page, she was the one who pushed the rumor of “death panels” into the national healthcare debate, prompting the White House to issue a series of defensive responses. Unfazed by its absurdity, she repeated the charge in her recent speech in Wisconsin. In a special congressional election in New York’s 23rd congressional district, Palin’s endorsement of Doug Hoffman, an unknown far-right third-party candidate, helped force a popular moderate Republican politician, Dede Scozzafava, from the race. In the end, Palin’s ideological purge in upstate New York led to an improbable Democratic victory, the first in that GOP-heavy district in more than 100 years.

Though the ideological purge may have backfired, Palin’s participation in it magnified her influence in the party. In a telling sign of this, Congressman Mark Kirk, a pro-choice Republican from the posh suburban North Shore of Chicago, running for the Senate in Illinois, issued an anxious call for Palin’s support while she campaigned for Hoffman. According to a Kirk campaign memo, the candidate was terrified that Palin would be asked about his candidacy during her scheduled appearance on the Chicago-based Oprah Winfrey Show later this month — the kick-off for her book tour — and would not react enthusiastically. With $2.3 million in campaign cash and no viable primary challengers, Kirk was still desperate to avoid Palin-backed attacks from his right flank, however hypothetical they might be.

“She’s gangbusters!” a leading conservative radio host exclaimed to me. “There is nobody in the Republican Party who can raise money like her or top her name recognition.”

In contemporary politics, money + brand recognition = power –period. For a Republican party scrambling to maintain its ever-shrinking base, that makes Sarah Palin its most influential personality. And with the Democratic Party and the White House being seen, rightly or wrongly, as the party of Goldman Sachs, an avowed fauxpulist like Palin (she’s ‘one of us!’) driving the tone and tenor of conservative politics in an age of economic instability is not something to airily discount.

Tim Egan:

Right now, a time when only 20 percent of Americans call themselves Republicans and Democrats are shrinking as well, the independents are disgusted with both parties. In large part, it’s because neither one seems to be on their side.

The early warning shots came on Nov. 3, against an ineffective former Wall Street executive, ousted New Jersey governor Jon Corzine, and the billionaire mayor who barely bought himself a third term, Michael Bloomberg of New York. Both felt the back hand of an electorate that feels as if the system is rigged against them.

A year ago, most people were open-minded about the ground-shaking changes that came with the economic collapse. Polls found a slim majority in favor of Wall street bailouts to save the economy. They would listen, watch, wait.

By this fall, the majority were not only against the bailouts, but in favor of curbing pay on Wall Street, and tightening government regulation of same.

The continuous drip of perceived unfairness continues. One day it’s news that Goldman Sachs seems to have stepped ahead of the line of those waiting to receive H1N1 vaccines, prompting questions about why investment bankers were getting doses rather than children or pregnant women. This week, Gallup found one in five parents saying they were unable to get swine flu vaccine for their children.

Another day brings a report that the top banks are raising credit card interest rates – some as high as 29 percent, which would shame a Mob extortionist — even against people who have always paid on time. This is the thanks we get?

If Congress steers through the Great Recession without responding to the thousand points of pain among average Americans, people will see them for what they are in bottom-line terms: an insulated club. Proof, just recently, came from a Center for Responsive Politics report that 237 members of Congress — 44 percent — are millionaires, compared to just 1 percent for the country as whole.

It’s difficult to take the clumsy rhetorical and symbolic excesses of the so-called Tea Party protest movement seriously. The ham-fisted polyester populism employed by some of the more exuberant adherants seems designed to drive a stake through the barely-beating heart of parody. But the (partly manufactured) rage that is driving teabaggers to target moderate Republicans like Dede Scozzafava or burn Speaker Pelosi in effigy isn’t simply fodder for mockery by progressive bloggers and #p2 snarkmeisters; it’s a bellwhether for a burgeoning class divide that threatens to leave the Congressional millionaire elite behind — and give a boost to any political movement that figures out how to tap that rage, regardless of where that movement lies on the ideological spectrum.

The fall of social democracy in Europe may provide clues as to how this could play out if progressives fail to heed the mood of the electorate. In a piece for Red Pepper published in June of 2008, Magnus Marsdal tried to explain how and why the populist right has been ascendant in Europe over the past decade, using the Norwegian Freedom Party (FrP) as an example:

Talking to people who voted for the Norwegian populist right offers useful insights for anyone trying to fight radical right-wing populism elsewhere in Europe, particularly when it comes to what I call ‘identity politics’.

How does the FrP make the worker-voter identify with a party that is positioned so far to the right? Hostility towards foreigners and mobilisation of ‘white’ or ‘Norwegian’ identity plays a big part. So does the male- orientated FrP’s anti- feminism, which mobilises identity among male voters.

The right-wing populists also play with a particular type of consumer identity that sets the population as consumer individuals against the state, the tax system and the elite. These are the obvious side of the FrP’s identity politics.

There are two other elements that are less apparent but even more important to consider, both in Norway and in other countries where right-wing populism is on the rise.

Worker identity
First, the FrP’s rhetoric offers its own worker-identity. This is not the worker as opposed to bosses and owners. It is the worker contrasted to the lazy and dole abusers ‘below’ and ‘posh’, cultured people ‘above’.

It is quite normal for people to imagine society as if it were split into three different sections, with themselves in the middle. Moral values determine who is worthy, and who is unworthy, both ‘up there’, ‘down below’ and among ‘proper working people’. The unworthy ‘up there’ include all those who represent the state, the Labour Party, the government and everybody else who ‘lies and steals money from common workers’, as Hans Erling Willersrud, the car worker who is the main character in The FrP Code, puts it.

Among people ‘down there’, the worthy are those who, through no fault of their own, have become ill, disabled or been made redundant. Everyone else is unworthy, including those who don’t do their jobs properly. For many workers worthiness equals skills – you are worth something because you have skills and you do something. This way of measuring worth and dignity is an alternative to measuring by income or education. On this essentially moral scale, the ‘honest worker’ comes out on the same level as, or above, the rich person or the leading politician.

The unworthy also include the dishonest: those who turn with the wind, pay lip service to all, who are not ‘solid wood’, as Norwegians say. The worst are probably those who suck up to ‘posh’ people and intellectuals one moment, only to denounce them among workers the next. Not being perceived as ‘solid wood’ has created quite a few problems for politicians, especially for the Labour Party, which needs to present itself favourably to different groups at the same time.

From my interviews with working-class FrP voters, I made a simple model to show how those ‘up there’ and ‘down there’ stand in relation to the ‘proper working people’. The elite ‘up there’ are divided into three different types:

  • the ‘know-it-alls’ linked to the education system and the state;
  • the greedy, found at the top of the economy; and
  • the politically powerful (often connected to the ‘know-it- alls’ and the greedy).

[...]

A second element to the FrP’s identity politics is that of aggrieved identity. ‘I’m just an ordinary worker, I have no fucking say,’ says Hans Erling Willersrud. He knows what it means to be at the boss’s beck and call and he’s had enough of the condescending attitude of Labour politicians who ‘can’t be bothered to listen to what [he’s] got to say’.He had some contact with the social security office when he was sick, and ‘has had it up to here with the system’. ‘They wouldn’t even believe he was in pain,’ says his mother Eli.

Hans Erling thinks politicians and bureaucrats are driving his country into the ground. He believes the social democratic elite has arranged things so the rich, the shrewd and the sleazy can take advantage of the system at the expense of the common man. He’s at the bottom of the pile at work. He’s at the bottom of the pile at the dole office. He’s at the bottom of the pile in the trade union (as an FrP voter) and in politics in general. He sees himself as a ‘political underdog’.

This doesn’t mean he is weak. On the contrary: being an underdog is not about lacking personal strengths, but finding that they don’t count for anything. More powerful people, regardless of their competence, are lording it over theunderdog, without recognising his skills or paying attention to what he actually knows, thinks or wants. It’s humiliating. He feels aggrieved.

And how does a political party like the FrP exploit the popular mood? It uses political language and images to touch a nerve with people who feel ignored, trampled on and overruled.

Carl Hagen’s most important ploy is to place himself in the role of the underdog. When he rages against the other parties wanting to keep a strong FrP out of government, he says, ‘Our voters will not be treated as second-rate.’ This simple sentence is perfect for connecting with people who on a daily basis, whether at work, at school or in the media, feel that they are treated like second-class citizens. Widening the focus, Hagen implies that what ordinary workers are in the workplace, the FrP is in the party political system. The voters can identify only too readily with what he is saying.

At the same time, Hagen – in the role of the affronted man who refuses to back down – offers the promise of vindication. For more than 30 years he has paid for the conceited sins of others, he tells them. But he turns the other cheek. Unlike the powerful and the arrogant, he is not driven by haughtiness or personal ambition. He is only fighting for what’s fair.

This underdog pose is brilliant because it can be applied to so many different voter groups. Above/below is a relationship that most people can recognise. Because he understands the underdog mentality, Hagen can connect with social-democratic workers as readily as with Christian fundamentalists who feel that their Christian cultural heritage is under threat.

Other subjects that mobilise the affronted population’s sense of themselves as the underdog include the FrP’s attacks on ‘politicians and bureaucrats’, its protest against schemes such as ‘the new opera being paid for by taxpayers’ and accusations that overpaid journalists are ‘persecuting the FrP’.

So where does Sarah Palin and her overwhelming ubiquity fit in all this? Like Barack Obama in 2008, Palin could prove to be a blank canvas on which citizens could project their desires en masse. Only instead of hope and change driving a national popular movement, hate and fear would be the engine of political change in 2012.

Of course, recent polls make the likelihood of a Palin run for the Presidency seem dim for the moment, as Joan Walsh notes.

But that doesn’t mean progressives should exhale:

The main reason not to fear a President Palin can be seen in recent polling among independents and moderates. In a the most current ABC News/Washington Post poll, Greg Sargent drilled down to find that: only 37 percent of independents and 30 percent of self-described moderates think she’s qualified for the presidency, and 58 percent of moderates view her unfavorably. Even more intriguing (but not surprising): Palin’s approval rating with men is higher than with women, 48 percent to 39 percent, and just a third of women believe she’d be qualified to be our first female president. (So much for Palin’s appeal to Hillary Clinton fans!)

So I think the Sarah Palin rehab tour is more about Sarah Palin Inc. than Sarah Palin 2012. She’ll rack up the speaking fees, raise some money for red-state, red-meat Republicans, further polarize the party and live the high life she thinks she deserves. Still, even as I dismiss Palin as a serious GOP threat, increasingly I believe that the faux-populism of the right is something to worry about. It may be fun to mock Sarah Palin, but Democrats shouldn’t laugh at many of the people who admire her – who see a folksy, new kind of self-made mom trying to fight the bad old Eastern elites.

Digby nails it:

I’m not saying that we should panic. These people are politically weak in their own right. But when I see the liberal gasbags on TV blithely dismissing this as if it”s impossible that Americans could ever fall for such lunacy, I feel a little frisson of alarm. I’ve read too many accounts of people who, 80 or so years ago, complacently made the same assumption. And the whole world found out that under the right circumstances even the most civilized nations can throw in with the crazies.

Bottom line: If the ugly momentum of right-wing identity politics carries into 2012, we could see the nastiest, most polarizing Presidential campaign since 1972, regardless of who gets the GOP nomination.

Recommend this post at Progressive Bloggers

Bachmann: Obama’s policies ‘fitting’ future generations with ‘shackles and chains.’

by matttbastard

Get it? Nudge nudge, wink wink?

Oh teh irony, indeed, Michele (also, FAIL.)

Recommend this post at Progressive Bloggers

NY Times: 300 Afghan Women Protest ‘Rape Law’

by mattbastard

This is probably the most inspiring and heroic thing I’ve read about in ages:

The young women stepped off the bus and moved toward the protest march just beginning on the other side of the street when they were spotted by a mob of men.

“Get out of here, you whores!” the men shouted. “Get out!”

The women scattered as the men moved in.

“We want our rights!” one of the women shouted, turning to face them. “We want equality!”

The women ran to the bus and dove inside as it rumbled away, with the men smashing the taillights and banging on the sides.

“Whores!”

But the march continued anyway. About 300 Afghan women, facing an angry throng three times larger than their own, walked the streets of the capital on Wednesday to demand that Parliament repeal a new law that introduces a range of Taliban-like restrictions on women, and permits, among other things, marital rape.

It was an extraordinary scene. Women are mostly illiterate in this impoverished country, and they do not, generally speaking, enjoy anything near the freedom accorded to men. But there they were, most of them young, many in jeans, defying a threatening crowd and calling out slogans heavy with meaning.

[...]

The women who protested Wednesday began their demonstration with what appeared to be a deliberately provocative act. They gathered in front of the School of the Last Prophet, a madrasa run by Ayatollah Asif Mohsini, the country’s most powerful Shiite cleric. He and the scholars around him played an important role in the drafting of the new law.

“We are here to campaign for our rights,” one woman said into a loudspeaker. Then the women held their banners aloft and began to chant.

The reaction was immediate. Hundreds of students from the madrasa, most but not all of them men, poured into the streets to confront the demonstrators.

“Death to the enemies of Islam!” the counterdemonstrators cried, encircling the women. “We want Islamic law!”

The women stared ahead and kept walking.

A phalanx of police officers, some of them women, held the crowds apart.

As Spackerman (h/t) rhetorically asks, “What have you done recently that’s half as brave?”

Related: In an interview with Afghan women’s rights activist Soraya Pakzad, Jean MacKenzie puts the  controversy surrounding the Afghan ‘rape law’ in context:

The reality is that no Afghan woman, Shi’ia or Sunni, has the right to object to her husband’s advances. The international outcry, while well meaning, misses the point: It is not a single law that is the problem, it is the overall status of women.

As they say, read the whole damn thing.

Recommend this post at Progressive Bloggers

61K Canadian Jobs Shed In March

by matttbastard

wheeeeeeeeeeeeeee

Another month, another round of massive job losses in Canada:

Canada is shedding jobs at a rate not seen since the deep recession of the early 1980s, as March saw another 61,300 workers join the ballooning ranks of the unemployed.

The loss brought Canada’s official unemployment rate to eight per cent, the worst in seven years.

Statistics Canada noted that since the peak in October, employment has fallen each month for a total of 357,000, representing 2.1 per cent of the work force. That is the most since 1982.

[...]

Economists had been expecting another poor jobs report with about 55,000 jobs lost.

But the reality was slightly worse, and much worse if the 18,200 jobs increase in part-time work were taken out.

Rising part-time work at a time of falling employment is usually an indicator that Canadians are settling for whatever jobs they can find. Among full-time workers, the contraction in employment was another outsized 79,500 in March.

So.  As Uncle Steve and the Harpercons sadly continue to lose their shit, the Canadian job market keeps hemorrhaging. And, waiting in the wings, we have Iggy and the Torie-lites, ready to save us all by doing, er, pretty much the same bullshit Harper and Co. have been doing, only with less asshattery, sweatervests and painfully-forced smiles.

We are so fucked.

Recommend this post at Progressive Bloggers