Thursday, June 21, 2012

God, mammon, and corporations as persons


I like the prophetic humorous bent of a recent article in Sojourners Magazine by Bill McKibben, "Corporations are people, the Supreme Court insists, and hence have the right to dominate our democracy with their money. Which means that the Supreme Court has decided it's really, really Supreme—it doesn't get much more Godlike than manufacturing new people. In fact, this may be the first attempt since Adam's rib surgery."

 

This week the Supreme Court takes up Montana's constitutional appeal to keep our state's rights to regulate corporate takeover of our election funding.  Why is Montana taking on this issue on behalf of our citizens?  States' rights are the surface issue.  The fundamental issue is morality.

 

Last week former governor Brian Schweitzer was interviewed on Yellowstone Public Radio's  "Home Ground." He did a good job of summarizing corruption that plagued Montana when, a century ago, big money overpowered the rights of real people.

 

In his words, "… a miner named William A. Clark came upon a massive copper vein near Butte. It was the largest deposit on earth, and overnight he became one of the wealthiest men in the world. He bought up half the state of Montana, and if he needed favors from politicians, he bought those as well. In 1899 he decided he wanted to become a United States senator. The State Legislature appointed United States senators in those days, so Clark simply gave each corruptible state legislator $10,000 in cash, the equivalent of $250,000 today." The U.S. senate eventually kicked him out when it learned of the bribes.  In 1912, following decades of turmoil, a successful ballot initiative banned corporate money from election campaigns and required financial transparency. This is the Montana law now to be dismantled by the federal government in the "Citizens United" Supreme Court case.

 

It seems the people of Montana were reading their bibles back in 1912.  Interestingly, there are many references to the classic issue of the rights of money-backed power versus human rights in the New Testament.  Jesus' many prophetic utterances often apply directly to this issue, such as, "you cannot serve God and mammon," (Matthew 6.24 and Luke 16.13).  John the Baptist preached a gospel of repentance from mixed worship of both money and God like this, calling people snakes who resisted "bearing fruits of repentance." When they asked what they should do, he said, "Let those who have two coats share with those who have none." (Luke 3.4-20).  Either we trust money and greed to determine our economy, or we trust God's compassion and interest in economic justice for all. Our state's history is solidly on the side of citizens, not "citizens united." Our traditional moral sensibilities along with the Bible's repeated references to God being on the side of  the orphans, widows, landless and poor Should make this issue resolve itself. Seldom are controversial issues so clearly resolved by simple literal Bible reading.

 

Republicans usually prioritize Biblical morality. It's baffling to me that prominent Republicans are confused on this issue.  Can  they keep a straight face while reading  and refuse the literal meaning of scripture? Do they really think corporate executives have inadequate free speech rights as citizens like the rest of us, so must have additional personhood rights of their corporations to exponentially multiply their power of speech over the rest of us? Under this ruling, corruption continues — sanctioned and covered up by the Supreme Court.  

 

People in the rest of the country might be feeling confused about whether corporate rights should exceed citizen rights.  For many of us in Big Horn County, though, it's clear that people, not big money, should control our legislative process.  How else will the rights and interests of those of us who own a Bible, but don't own a gold mine ever prevail?

 

The following comments and links are only in the blog edition, not in the paper:

 

Most shocking to me was the secrecy provision of the Supreme Court's finding of citizens united. This provision alone should be cause for overturning. Shouldn't we all have a right to know exactly which corporations and individuals are spending millions in attack ads to influence elections -- and what their agendas are? That was a key provision of the Montana anti-corruption legislation in 1912, which the Supreme Court's misguided decision would overturn. 

 

The Christians began to use the name of Mammon as a pejorative, a term that was used to describe gluttony and unjust worldly gain in Biblical literature. It was personified as a false god in the New Testament.{Mt.6.24; Lk.16.13} The term is often used to refer to excessive materialism or greed as a negative influence.

 

http://www.nytimes.com/2012/06/04/opinion/an-invitation-to-keep-money-out-of-politics.html

Governor Brian Schweitzer's editorial that prompted his interview on Yellowstone Public Radio. This is the story of wealthy financier miner William Clark, who bribed his way into the US Senate from Montana.

 

Clark "won" the "election," but when the Senate learned about the bribes, it kicked him out. "I never bought a man who wasn't for sale," Clark complained as he headed back to Montana.

Nevertheless, this type of corruption continued until 1912, when the people of Montana approved a ballot initiative banning corporate money from campaigns (with limited exceptions). We later banned large individual donations, too. Candidates in Montana may not take more than a few hundred dollars from an individual donor per election; a state legislator can't take more than $160. And everything must be disclosed.

 

 

http://www.alternet.org/economy/155538/Paul_Krugman%3A_We_Could_End_This_Depression_Right_Now/?page=2

Paul Krugman: We Could End This Depression Right Now

The Nobel laureate talks about Washington, Europe and the bizarre alternate universe inhabited by deficit fear-mongering media and political elites.

 

E.J. Dionne Jr. a columnist for The Washington Post and a senior fellow at the Brookings Institution. He writes in Sojourners Magazine on the obvious citizen rights violations by Supreme Court's citizens united ruling, with the religious implications only hinted:

http://sojo.net/magazine/2012/06/bizarre-and-peculiar-ruling

 

This is one obvious wrong of government policy. Our broken two-party political system may very well leave it unchallenged. Montana's initiative this week is one of several options that may very well help restore sanity to an activist Supreme Court.

 

Can our politicians address the burning issues of the people of our nation instead diverting our attention to issues that inflame and divide us? Here are some real challenges troubling people across the nation but concentrated in Big Horn County, that, if addressed rationally, could build our nation's strength and revitalize our families. Unfortunately, the extremist base of the Republican party including Romney, and most Democratic politicians including President Obama, won't touch these issues.

 

AlterNet / By Louis Ferleger and Jacob M. Magid

How to End the Nightmare of Jobless America

 

Louis A. Ferleger is a professor of history and director of the graduate program at Boston University. Jacob M. Magid is completing his master's degree in economics at Boston University

 

"In Henderson, when a new company moves to the area, the Henderson-Vance County Economic Development Commission schedules a meeting with representatives from local community colleges to determine what programs might be needed to support the enterprise. At Vance Granville Community College, administrators work on instituting and implementing customizable training services for the company's workforce; they also created a new five-year program in which students can earn a high-school degree and an associate degree simultaneously. As a result, high school drop-out rates have fallen and new bio-tech labs have been established.

Business-government partnerships are only one part of what needs to be done to reduce the staggering number of dead zones."

 

 

--
David Graber

Hardin, MT  59034

email graberdb@gmail.com



Thursday, June 7, 2012

Jubilee or judgement day


In the fall of 1974, a fellow teacher in Busby and son of famed wildlife biologist John Craighead, professor of biology at the University of Montana, opened my eyes to a crisis plaguing the grizzly bear population of Yellowstone Park—a crisis that parallels the economic situation of our larger American society today.  We Montanans have made a radical shift in our thinking about grizzly bear survival in Yellowstone Park.  We desperately need a similar radical shift in thinking for the survival of our American families, if not our nation itself.

Early tourists to Yellowstone were enthralled with wildlife, and grizzly bears quickly learned that people--and their garbage cans--meant food.   Rather than learning to dig grubs and catch fish, grizzly cubs followed their mothers to the dumpsters.   Park visitors paid to watch ferocious grizzlies fight over garbage from the safety of a caged-in concrete stadium.  This was far from what the Creator intended for these creatures.  

It was also deadly business. Bear attacks became serious problems in Yellowstone Park as postwar crowds streamed through that habitat, tempting the bears with cameras and snacks. It also took a terrible toll on the wild grizzly population. As their garbage supply dwindled at the end of tourist season, hungry bears began to raid outlying communities.  Cubs starved. Many renegade bears were shot. (The Grizzly Bears of Yellowstone: Their Ecology In The Yellowstone Ecosystem, by John Craighead and Jay Sumner)

Our naturally self-sufficient American society also needs to develop a new understanding of changes that have happened around us.  Our misguided economy is now destroying families, rather than encouraging appropriate growth and development. It's time to look at reality today, just like we came to realistically appraise Yellowstone bear life in the 70's.  Jubilee could be the answer to setting the bears and us free. 

What is Jubilee?  In short, it's radical redistribution, not so much of wealth, but of the means to make a livelihood. In the Bible, Leviticus 24, it was primarily the restoration of productive land, the primary means of survival then, to children of the owners from fifty years previous. Significantly, it also meant freedom for slaves, release of prisoners, and cancelling of debts. It DID happen in Bible times, contrary to many Bible teachers, but the frequent failure of ancient Israel to practice jubilee is the origin of much of the Bible's prophecy of judgment. http://en.wikipedia.org/wiki/Jubilee_%28biblical%29

It's ironic to read the new Jubilee writing from secular-minded economists, such as the famous Boston Group.

Some of the best economists and historians are warning us all that unless we restructure our private mortgage debts and increase citizen access to our economy as a means of livelihood, we will all suffer as our nation teeters on financial disaster. We could even descend into going at each other over dwindling morsels of garbage like the Yellowstone bears.  Maybe in the case of humans those would be junkbonds.

Many of us continue to focus on the poorest families in our country as the scapegoat for our economic problems.  Yet evidence suggests that a great deal of government support is actually going to the richest Americans.  This reminds me of what happened to the Soviet Union during Yeltsin's "glasnost," when partial reform of the failed communist economy toward capitalism led to tragic population loss.   Our national media, anxious to similarly shift accountability because it's again owned by the elite, teaches us to blame only one kind of free-loading welfare-recipient: those at the bottom of our economy.

The Republican majority in the House recently voted to continue the free-loading taxpayer-funded subsidy of oil companies that Obama was trying to curb. This is just one example of how government money is being used to support capitalistic enterprises that should sink or swim on their own.  Remember the bailouts? There are all sorts of justification for this trend, but ultimately it comes down to lopsided welfare for the rich.  As in Russia, and like the garbage-eating bears of Yellowstone, we have found ways to allow free-loading off the lowest classes en masse. We don't see these free-loaders hanging around the streets of Big Horn County. We have to go to Wall Street to find them.

Democrats and Republicans have notoriously left unchallenged welfare for the rich while continuing to cut welfare for the poor. Both parties attempt to keep us distracted with diversionary pelvic issues (abortion and gay rights), while maintaining this system of unjust subsidies. 

Let's remember the Bible's message of Jubilee and stay focused on fair distribution of the means of wealth, rather than wealth itself.  Let's take care of the earth, so that all families can forage successfully to live well. 

The Big Horn County News  column ends here. Further information and additional citing follows.

Our founders felt the principles contained in the Jubilee were so important that they had the Liberty Bell inscribed with words taken straight from Leviticus: "...Proclaim Liberty throughout all the land unto all its inhabitants thereof" (Lev.25: 10). Obviously the concepts underlying the Jubilee have something crucial to say with who we are not only as people of faith, but as Americans. Liberty: It's what the United States is all about. But Americans have an even stronger bond to the Jubilee. We like the Isrealites of old whom God is prescribing the Jubilee to are a land of exiles. "I am the lord your God, who brought you out of Egpyt to give you the land of Canaan and to be your God." (leviticus 25:38) Most of us are of immigrant stock, some of us came here unvolunteerily.
But does the Jubilee speak to a time long gone? If we focus on the literal and look at the specific remedies God prescribed to Moses with the Jubilee celebration: cancellation of debts (Dt. 15:1, 15:9, 31:10, Neh. 10:31; Jer 34:14), the freeing of slaves (Lev 25:39, Ex 21:2), returning land purchased to its original owner (Lev 25:23-24) , letting land lie fallow (Lev 25: 4,11) it certainly appears dated. Slavery has been almost totally eradicated and the importance of land has diminished as we are no longer an agrarian society. But what was God after in the jubilee, the spirit behind it? and what have we learned in the last 3500 years?

According to Leviticus 25, every fiftieth year was to be a jubilee where property would be returned to its ancestral owners, and everyone who had sold themselves as an indentured servant to a fellow Israelite or as a slave to a resident alien would be released:
You shall count off seven weeks of years, seven times seven years, so that the period of seven weeks of years gives forty-nine years. Then you shall have the trumpet sounded loud; on the tenth day of the seventh month -- on the day of atonement -- you shall have the trumpet sounded throughout all your land. And you shall hallow the fiftieth year and you shall proclaim liberty (Hebrew: דרור; LXX: φεσις) throughout the land to all its inhabitants. It shall be a jubilee for you: you shall return, every one of you, to your property and every one of you to your family. (Lev 25:8-10 NRSV)

Usury, fascism and the process of depopulation are three phases of the same process. The murderous debt-collection policies that dominated Imperial Rome destroyed the economy of the entire Mediterranean region, and led to a collapse of the population by 40 percent. The attempt to collect the debt imposed on Europe by the Bardi and Peruzzi banks in the fourteenth century led to the impoverishment of the population, the lowering of its standard of living and immunological resistance, and the devastation of the Black Death, which reduced the continent's population by one-third between 1348 and 1373.
In America, this triple process is far advanced. The Bush and Obama administrations lied that poverty is declining in America. The facts show otherwise, yet today. The minimal number of US poor is 45 million; but another 60 million are barely surviving with household incomes for a family of four within $6,000 of the poverty line. Two out of every five Americans barely subsist during what is supposedly the greatest recovery in American history in this century

Moral hazard is a concept that is arguably misunderstood, since those responsible for the damage have neglected to acknowledge its terms. Moral hazard is perceived by Allan Loeb in Wall Street: Money Never Sleeps as ''being able to steal your money without responsibility''. This very crude description of moral hazard, however, turns out to be fairly exact. In the financial system, moral hazard occurs when the person investing money is not held responsible for the outcome of their investment strategy.2atardif.com


Frank Craighead's  nephew was my teaching colleague at Busy in 1974-5. My family and I heard first hand of encounters with grizzlies, and saw many film clips taken in dangerous circumstances. We saw awesome violent footage, and also got a deep impression of the Craigheads' efforts to bring "jubilee" freedom to the bears of Yellowstone.  Ultimately, they were granted freedom from their addiction to garbage, and the survivors relearned the forage structure that was compatible with the ecosystem in place in Yellowstone Park.

The brothers worked hard to stop a "cold turkey" decision that came down from the USDA to utterly end bear access to garbage in a very short time in the late 70's.  The Craigheads promoted a program that would give bears time to relearn their nich in the Yellowstone ecosystem over time, so more would survive. In fact, survival of the Yellowstone grizzly was threatened by this program. Grizzlies were imported from Glacier Park to supplement the Yellowstone population. Now their survival is much better established.  Control of these dangerous animals is still a controversy.

Many modern opponents of evolution reject Darwin's theory of evolution but accept, even practice, evolutionary survival-of-the-fittest in the market place. It's really the worst kind of evolution it threatens families the way bears' existence was threatened in Yellowstone by well-meaning profit-motivated ignorance. But a few bears survived their own judgment day, and now are doing better.

Some Biblical scholars argue that the Jubilee Year was never carried out in practice, suggesting that God has ceased to care about economic justice, that mounting inequalities do not lead to violence, and that we are off the hook. The Old Testament prophets repeatedly denounced those who devoured widows and orphans, taking over lands and houses until there were no (free) people left in the land. When the Children of Israel lost their land and were living in Babylonian exile they pondered their calamity and, with the help of prophets like Jeremiah and Isaiah, they came to understand that idolatry and the injustice it caused, since idolatry is basically greed, were the cause of their disaster.

There is a question here for all societies to ponder. Can growing inequalities
only be resolved by violence? Can any human society can last without mechanisms of redistribution? Free public education, progressive income and inheritance taxes, and universal health insurance are examples of what is needed to prevent social collapse from too much tolerance of the idolatry of greed.

Will the powerful tend toward social justice only if and when violent breakdown of society threatens? Or will they allow jubilee because it's a deeper principle of God's word and human solidarity?  Self interest even of the wealthy requires awareness of human suffering when excessive wealth deprives too many of basic human rights of survival and safety. Jesus focused on this.

For him, perpetual Jubilee was at the heart of the prophets' ministry, and even  more so of his: At the beginning of his ministry, in the Synagogue of Nazareth, Jesus published his "movement manifesto" by reading from the scroll of the
prophet Isaiah: The Spirit of the Lord is upon me for he has anointed me to bring good news to the poor,
to proclaim liberty to the captives,
recovery of sight to the blind,
to let the oppressed go free,
to proclaim the year of the Lord's Favor.
". . . Then he began to speak to them, 'This text is being fulfilled today even as you listen.'" (Luke 4:18-19).

In his book,  The Politics of Jesus, John Howard Yoder quotes a word study by Andre Trocme that identified Jesus' announced "Year of the Lord's Favor" with the Jubilee Year. This has become the consensus of an increasing number of New Testament scholars. In fact, once this connection is made, it is hard to find anything in the Gospels that does not illustrate an ongoing enactment of the Biblical Jubilee.

In Jesus' coming, Jubilee was no longer a periodic and oft' neglected part of Israel's history, but the Messiah and his traveling community practiced an ongoing Jubilee celebration. Jesus went about forgiving sins, bypassing the temple sacrifice system. He taught his disciples to pray, "Forgive us our debts as we have forgiven those who are indebted to us," a moral and economic initiative of grace. Every healing was at the same time a restoration to full participation in the community of Israel. The feeding of the 5,000 and the 4,000 illustrated the plenty that comes from a radical sharing that is blessed by God. The coming of the Holy Spirit at Pentecost triggered a Jubilee avalanche of, sin forgiveness, economic restoration, healing, and baptism into communion of the saints. The periodic practice of Jubilee was turned into a perpetual Jubilee by those who follow Jesus in the way of peace. This is what times of renewal in the Church have always looked like. Jesus came, as he said, not to abolish the law but to fulfill it.

A responsible scholarly theological investigation of this theme is

Although replete with scholarly language, the book is readable. The author attempts to remedy the de-emphasis, a problem of today's theology, of shalom, koinonia and related social transformation at the heart of the Bible's message of salvation. 

Bible is clear. Luke 4:
The Spirit of the Lord is upon me, because he has anointed me to bring good news to the poor. He has sent me to proclaim release (Hebrew: דרור; Greek OT [LXX]: φεσις) to the captives and recovery of sight to the blind, to let the oppressed go free, to proclaim the year of the Lord's favor." (Luke 4:18-19 NRSV; cf. Isaiah 61:1-2; 58:6).


In the 'Book of the Covenant' (Ex. 21-23) there are two regulations concerning the sabbatical year, one about agriculture and one about slavery. First, the regulation concerning agriculture is found in Exodus 23:10-11: For six years you are to sow your fields and harvest the crops, but during the seventh year let the land lie unploughed and unused. Then the poor among your people may get food from it, and the wild animals may eat what they leave. Do the same with your vineyard and your olive grove. (NIV)

In the Jubilee God speaks to us about right living. We are told how we should treat each other and the land--that all shall be set free! The principle(s) is so simple but it is profound and powerful. Yet generation upon generation have refused to follow its tenets, thinking it foolhardy or too dificult to follow. By doing such we have turned this basic truth into a hidden mystery. Liberty is power--the power to free ourselves.
We easily can find the free-loading low-initiative poor. Every community has some, trying to get from government what they cannot get or are too lazy to get for themselves. 

Jubilee in the Bible teaches that it's the responsibility both of government and of individuals to support a major revolutionary redistribution of the means—not the result—of productive work every 50 years. It wasn't wealth simple redistribution, and obsession of political talk today; it was land redistribution. Land, after all, was the foundation of wealth in that economy.  So Jesus' words frequently refer to land and its production, not to his father's work, carpentry.

Some comments on jubilee-related issues from The Economist's View, a clearinghouse of current writings by economists at universities around the world:

Tuesday, March 20, 2012
Simon Johnson says we are "on a bipartisan route to disaster":
A Colossal Mistake of Historic Proportions: The "JOBS" bill, by Simon Johnson: From the 1970s until recently, Congress allowed and encouraged a great deal of financial market deregulation – allowing big banks to become larger, to expand their scope, and to take on more risks. This legislative agenda was largely bipartisan, up to and including the effective repeal of the Glass-Steagall Act at the end of the 1990s. After due legislative consideration, the way was cleared for megabanks to combine commercial and investment banking on a complex global scale. The scene was set for the 2008 financial crisis – and

Wednesday, March 07, 2012
Surprise, surprise, Larry Tabb, the founder and chief executive of Tabb Group, is complaining about regulation of the financial sector. He starts off strong:
Mea Culpa? Yes, the banks did wrong. They became overlevered; hopped-up on greed, they took on more credit than a loan shark would have extended. When the bets turned sour, they went cap in hand to the taxpayer. Once bailed out, the banks threw petrol on the fire by not being contrite, hoovering up cheap cash, paying bonuses as if there were no tomorrow and refusing to develop a set of even the least offensive business restrictions.

But quickly changes course:
So what did legislators and regulators do? They did what they normally do in a crisis: they legislated and regulated. While the new rules may or may not preclude another crisis, they will certainly punish the banks and may inadvertently punish the taxpayer.


Saturday, March 03, 2012
The chairman of the Financial Crisis Inquiry Commission, Phil Angelides, wonders if there will ever be a thorough investigation and prosecution of "the financial assault on our country":
Will Wall Street Ever Face Justice?, by Phil Angelides, Commentary, NY Times: Last week, Attorney General Eric H. Holder Jr. proclaimed in a speech that when it comes to fighting financial fraud, the Obama administration's "record of success has been nothing less than historic." Such self-congratulation is not only premature, but it also reveals a troubling lack of understanding about what is required to win the war against financial wrongdoing.
Four years after the disintegration of the financial system, Americans have, rightfully, a gnawing feeling that justice has not been served

Sunday, February 26, 2012
Daniel Davies on the history and purpose of debt contracts (this is from a series of posts at Crooked Timber discussing David Graeber's new book Debt: The First 5,000 Years):
Too Big To Fail: The First 5000 Years, by Daniel Davies: One of the many fascinating pieces of information that David Graeber tosses off like shrapnel in Debt is that the first recorded appearance of the word "freedom" in a political document is in a Sumerian proclamation of a debt amnesty or jubilee.
What interested me, however, from the point of view of a professional banker, is that the document in question provided only for the discharge of personal debts of the Sumerians; commercial debts of merchants were not discharged. ... The point I am trying to make here is that as well as being the first mention of the word "freedom", this proclamation marks

Ehrenreich: How Corporations and Local Governments Rob the Poor Blind
The trick is to rob them in ways that are systematic, impersonal, and almost impossible to trace to individual perpetrators.

Individually the poor are not too tempting to thieves, for obvious reasons. Mug a banker and you might score a wallet containing a month's rent. Mug a janitor and you will be lucky to get away with bus fare to flee the crime scene. But as Business Week helpfully pointed out in 2007, the poor in aggregate provide a juicy target for anyone depraved enough to make a business of stealing from them.

According to a new study by the Center on Budget and Policy Priorities, the number of Americans living on less than $2 a day has doubled in the past 15 years. That's right -- nearly 1.5 million Americans are living in the kind of extreme poverty that, until now, has been associated with developing countries.

No political candidate is serious about the debt problem, deficit spending, and the impact of our economic depression on average people. Check this out.

Folks at this organization envisage a political culture where everyone has the skills, the information, the opportunities and the right to contribute to solving society's problems. "We create tools for groups of people to learn about, discuss and decide on complex issues."  This is a core principle of jubilee.


Hammurabi Knew Better
Debt Slavery – Why It Destroyed Rome, Why It Will Destroy Us Unless It's Stopped
by MICHAEL HUDSON
Book V of Aristotle's Politics describes the eternal transition of oligarchies making themselves into hereditary aristocracies – which end up being overthrown by tyrants or develop internal rivalries as some families decide to "take the multitude into their camp" and usher in democracy, within which an oligarchy emerges once again, followed by aristocracy, democracy, and so on throughout history.
Debt has been the main dynamic driving these shifts – always with new twists and turns. It polarizes wealth to create a creditor class, whose oligarchic rule is ended as new leaders ("tyrants" to Aristotle) win popular support by cancelling the debts and redistributing property or taking its usufruct for the state.

Contract Theory, Distributive Justice,
and the Hebrew Sabbatical

No idea for freeing our nation from the threat of judgment day because of our mistreatment of "the least of these" is one soundly based in our Bible. It's the idea of jubilee.

But the Biblical basis for an American jubilee doesn't come into public discussion from religionists. It comes instead from economists—actually, a group of highly respected economists based in Boston.


India's legendary Wootz steel from 300 BC  met.iisc.ernet.in/~rangu/text.pdf

Iron has both creative and destructive associations. If iron has represented the sustenance of life through agricultural implements, its destructive potency has been amply demonstrated by the weapons of war and conquest. In the words of the famous Roman scientist, Pliny the Elder, of 2000 years ago,
'Iron mines bring man a most splendid and most harmful tool. It is by means of this tool that we cut into the ground, plant bushes, cultivate flourishing orchards and make grape vines younger every year by cutting off old vines with grapes. By this same tool we build houses, break stones and use iron for all purposes. But it is also with the help of iron that we fight and battle and rob. And we do it not only at close quarters but giving it wings we hurl it far into the distance now from embrasures now from powerful human hands, now from bows in the form of feathered darts. This, I think, is the most infamous invention of the human brain. For in order to enable death to catch up with man faster, it has given it wings and armed iron with feathers. For that the blame rests with man and not with Nature'.

The average salaried worker makes 10% money less than a decade ago. This is on top of a half-century decline in real income.  What happened to the American dream? The only ones who believe it anymore are those who made it. 


According to the operative theory—developed by the founding fathers of libertarianism/neoliberalism, Friedrich von Hayek, Ludwig von Mises, Milton Friedman and the rest—a privately-owned company will always outperform a state-run company because private ownership and the profit-motive incentivize the owners to make their companies stronger, more efficient, more competitive, and so on. The theory promises that everyone benefits except for the bad old state and the lazy. The story of Russia since the arrival of capitalism with Yeltsin is a case in point.


At the end of the 1990s, after the total collapse of the mass-privatization experiment in Boris Yeltin's Russia, some of the more earnest free-market proselytizers tried making sense of it all. The unprecedented collapse of Russia's economy and its capital markets, the wholesale looting, the quiet extermination of millions of Russians from the shock and destitution (Russian male life expectancy plummeted from 68 years to 56 years)—the terrible consequences of imposing radical libertarian free-market ideas on an alien culture—turned out worse than any worst-case-scenario imagined by the free-market true-believers.

In reality, as everyone was forced to admit by 1999, Russia's privatized companies were stripped and plundered as fast as their new private owners could loot them, leaving millions of workers without salaries, and most of Russia's industry in far worse shape than the Communists left it.


The central message of Paul Krugman's new book, End This Depression Now! is simple: It doesn't have to be like this. No external dynamic is keeping unemployment at more than 8 percent and consigning a generation of young workers to an economy in which risk is plentiful and opportunities scarce. It is only a failure of political will -- and an almost universal embrace of conservative voodoo economics – that is keeping us mired in this dark economic moment.

Following is from an interview conducted with Paul Krugman (PK), based on his new book:

Of the 2009 stimulus, Krugman writes, "Those who had more or less the right ideas about what the economy needed, including President Obama, were timid, never willing either to acknowledge just how much action was required or to admit later on that what they did in the first round was inadequate." Instead of treating the dismal jobs picture as a crisis requiring their full attention, Washington "pivoted" to talking about the deficit – a phantom menace -- at precisely the wrong time. "People with the wrong ideas," Krugman writes, "were vehement and untroubled by self-doubt."

PK: The moral of the book is: this doesn't have to be happening. This is essentially a technical process; it's a small thing. It's like having a dead battery in a car, and while there may be a lot wrong with the car, you can get the car going remarkably easily, if you're willing to accept that's what the problem really is.

 Not enough spending. Cuts in state an local government pay and workforce cutbacks. School teachers especially.
If government spending for public enterprises had expanded in the Obama administration as it did in the Bush administrations, reflecting population changes, we would have 1.3 million more jobs now. From this there would be indirect effects we are now missing in lower family debts, more spending on needs, and our economy would be much better.  That's something like 2 million more jobs. That's something like 2 million jobs right there. "When you put it all together my back of the envelope says "…If we weren't doing this austerity, GDP would be around 3 percentage points higher right now, the unemployment rate would be at least 1.5 points lower, which means we'd be at 6.5 percent."

Democrats say the government has to pull in spending when families do. Isn't that the reverse of the truth? Isn't it the fact that when families are tightening their belts the government needs to loosen its belt to make up for that loss of demand?
PK: That's right. The whole mistake that people make is that we're all like a family. We're not because we're interdependent. Your spending is my income and my spending is your income. If we both tighten our belts at the same time thinking that's going to make us better off, it actually makes us worse off. This is a fundamental fallacy.

This notion that we have to have extreme income inequality in order to have a successful, growing economy requires that you forget history that's live in the minds of everybody over the age of 50. The best generation of economic growth we've ever had in America was the generation right after World War II. That was a society in which the rich were not even remotely as rich as they are now. How come we created all those jobs -- all those good jobs -- at a time when the top tax rate was as high sometimes as 90 percent?

There are many who believe we must not only slash spending and cut social programs, but also for some reason we must slash taxes on rich and the corporations.

JH: We're not the only ones who have been afflicted by this scourge of irrational deficit hysteria -- the idea that we should cut spending when private sector demand is deep in a hole.
The bond markets are willing to lend America -- the US government -- long-term money at about 1.7 percent as of right now. That's ridiculously low. The index bonds that are protected from inflation actually have a negative interest rate. The bond markets are saying they're worried about economic stagnation. They're worried there aren't going to be investment opportunities because the demand is so weak. So they're going to park their money in US government debt, which is considered safe. The last thing you should be worrying about, at least according to the bond market, is those deficits. Those are not the problem right now.

What happens is when the wealthy are very wealthy they can in effect buy political support. The way that's worked in practice in the United States is that the Republican party moves with the interests of the super elite. Not the 1 percent, but the .01 percent. So the extraordinary explosion in incomes of the .01 percent relative to everybody else has pulled the Republican party far to the right to the point where there is no center. The center did not hold, it dissolved and turned into a chasm. That's not because Democrats moved to the left, because they didn't; they moved right. It's because the Republicans moved off into the Gamma quadrant. That is at the root of our political paralysis right now

The wealthy .01% They not only spend money directly on campaigns, but they also fund these networks of what I call alternative information infrastructure. If you look at for example billionaire Pete Peterson he's put $1 billion of his own money into a network of think tanks and media projects to help us understand that the greatest threat that we face are deficits, far-off deficits projected 30 or 40 years out.

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David Graber

Hardin, MT  59034

graberdb@gmail.com