poor

Why Is The Global South Still Poor?

By Allen Myers

Republished from Red Flag.

In the years following World War Two, as numerous direct colonies won formal independence, there was a widespread belief, or at least a hope, that political independence would lead fairly rapidly to significant economic progress. No longer under the control of foreign exploiters, the ex-colonies would be free to undergo economic development like that which had occurred in the wealthy capitalist countries. With assistance from benign international institutions and former colonisers who had seen the error of their ways, the “underdeveloped” global south, renamed “developing countries”, would soon “catch up”, and the huge economic differences between countries would be overcome.

As is obvious today, it didn’t happen. In 2015, not quite 1 billion people in twelve “first world” countries had a per capita GDP of US$44,392; 6.2 billion people in 148 “third world” countries had a per capita GDP one-tenth that size. Why, and how?

The “why” is relatively easy, while the “how” requires a bit more detail and analysis. Despite the nonsensical propaganda they produced, European imperialists didn’t colonise Africa, Asia and the Americas out of noble motives. Their motive, pure and simple, was greed. When a combination of their weakening in the world war and the uprisings of colonised peoples forced them to grant political independence, that didn’t make them stop being greedy. It just made them modify their techniques of exploitation.

The underdevelopment of the global south was not some kind of natural misfortune, like a drought or poor soil or geographical isolation. It was something inflicted on the colonies by their Western colonisers—something concisely summarised 50 years ago by the Guyanese Marxist Walter Rodney in the title of his book, How Europe Underdeveloped Africa.

Of course, it was easier for imperialists to plunder the southern countries when they had direct political control over them. They could engage in what amounted to looting and piracy: forced labour or slavery, direct expropriation of land and other wealth, taxes remitted to the imperialist centres, destruction of industries that might compete against imperialist companies.

Forced to give up direct political control, the imperialists nevertheless continued exploiting the former colonies in more subtle ways. Capitalist competition, promoted as a pathway to growth, was in reality a deliberate dead end. The wealth extracted from colonies over decades or centuries had built large, technically advanced businesses in the imperialist centres. Conversely, the exploitation meant that the former colonies lacked the capital that would have been necessary to create industries that could compete with the imperialists.

No problem, declared the ideological servants of imperialism: the former colonies can borrow the capital they need in order to develop; then they can repay the loans from the profits of their new industries. One of several flaws in this argument was that many citizens of former colonies thought it a bit unfair that they should have to borrow money that had been stolen from them, and then pay interest to the thieves.

This is where international bodies such as the World Bank and the International Monetary Fund come in. They pose as independent, well-meaning sources of capital for the “developing” economies. In reality, they are, and have always been, controlled by the governments of the wealthiest imperialist countries. This ensures that loans go only to governments that don’t rock the boat—the boat that is carrying the enormous interest payments that poor countries must make to both bilateral “donors” and to the IMF/WB mafia.

These interest payments are transfers from poor countries to wealthy ones, and are a significant part of what keeps the global south poor. A 2020 study of 63 “impoverished countries” by the Jubilee Debt Campaign, based on IMF and World Bank figures, found that their external debt servicing in 1998 consumed an average 16.6 percent of government revenue. Partial debt relief for some of the most indebted countries reduced that figure to 5.5 percent by 2011, but it then started rising again, reaching 11.1 percent in 2018. The COVID pandemic will have undoubtedly raised it further. The World Bank notes of the pandemic’s impact: “Low- and middle-income countries’ external debt-to-GNI [gross national income] ratio rose to 29 percent in 2020 from 27 percent in 2019, and the debt-to-export ratio increased to 123 percent from 106 percent in 2019”.

These figures stand like an ironic commentary on the idea that “development” loans would make it possible for poor countries to build industries that increased their incomes and repaid the loans. Even if these countries were to do the impossible for a year and devote all of their export revenues—that is, every cent of export sales, not just the profits—they would still not be able to pay off their full foreign debts.

The owners of the imperialist economies of course never intended for their governments to help poor countries create industries that could compete against them; imperialist corporations are not suicidal. So “development” in the poor countries is restricted to fields that continue the transfer of wealth to the rich countries: direct imperialist investment, the profits of which of course go to the investing corporations; and natural resource extraction and industries characterised by low- or at best medium-level technology, which have correspondingly low rates of profit.

Capitalists in the global south are confined to the least productive, and therefore least profitable, fields. As a result, much of the value created in the south is transferred to the imperialist countries in the course of trade: the poor countries import overpriced goods and sell their own products for less than their real value. The amounts of money transferred in this way, called “unequal exchange” by economists, are staggering. 

A recent article in the journal New Political Economy attempts to quantify the sum for the years 1960-2018. The authors write: “Over the whole period, drain from the South totalled $62 trillion (constant 2011 dollars) ... Appropriation through unequal exchange represents up to 7% of Northern GDP and 9% of Southern GDP”. That is not a typo: the global south was deprived of $62 trillion. Such value transfers are the underlying cause of situations such as the current disaster in Sri Lanka.

If imperialist corporations seem to have arranged everything for their own benefit, it must be recognised that they can’t do it all on their own. Even in the time of direct colonies, to maintain control, the colonisers needed collaborators within the colonial population. After political independence, imperialism still required a social layer that would cooperate to keep the system ticking over profitably.

It found the components of that layer among local capitalists, large landowners and would-be capitalists. In some cases, they might have come from among the open collaborators. In others, they came out of the movements for independence, from those leaders whose visions didn’t go beyond a change of personnel at the top.

Because of the huge sums of value appropriated by the global north, the capitalists of the global south generally cannot compete with the major imperialist industries. Aside from situations of natural monopoly (oil, for example), capitalists in the poor countries have to rely on low-profit areas such as manufacturing consumer goods that northern capitalists have abandoned or assembling electronics for high-tech imperialist companies. In these labour-intensive industries, the poverty and low wages of the south allow them to compete, and they are driven to maintain those low wages as a matter of their own survival.

So, while southern capitalists might sometimes feel that they are oppressed by imperialism and, if they have the opportunity, might put some pressure on imperialist corporations for improved terms of their collaboration, they know well that they share class interests with the imperialists and have a common enemy in the working class. If Marx called competing capitalists a “band of warring brothers”, we might call imperialists and southern capitalists a “band of squabbling big brothers, little brothers and occasional distant cousins”.

This is why southern capitalists are never reliable allies of working people and poor farmers in any struggle against imperialism. It is why the possibility of a radical popular movement forming government in a third world country always arouses the threat of imperialist intervention against it, to ensure that the country’s capitalists remain in charge.

There Is No Substantive Economic Recovery In Sight: Capitalism and Its State Are Running Out of Tricks

Pictured: A Maricopa County constable escorts a family out of their apartment after serving an eviction order for non-payment on Sept. 30 in Phoenix. [John Moore / Getty Images]

By Shawgi Tell

One of the fundamental economic laws under capitalism is for wealth to become more concentrated in fewer hands over time, which in turn leads to more political power in fewer hands, which means that the majority have even less political and economic power over time. Monopoly in economics means monopoly in politics. It is the opposite of an inclusive, democratic, modern, healthy society. This retrogressive feature intrinsic to capitalism has been over-documented in thousands of reports and articles from hundreds of sources across the political and ideological spectrum over the last few decades. It is well-known, for example, that a handful of people own most of the wealth in the U.S. and most members of Congress are millionaires. This leaves out more than 95% of people. Not surprisingly, “policy makers” have consistently failed to reverse these antisocial trends inherent to an obsolete system.

At the same time, with no sense of irony and with no fidelity to science, news headlines from around the world continue to scream that the economy in many countries and regions is doing great and that more economic recovery and growth depend almost entirely, if not entirely, on vaccinating everyone (multiple times). In other words, once everyone is vaccinated, we will see really good economic times, everything will be amazing, and we won’t have too much to worry about. Extremely irrational and irresponsible statements and claims of all kinds continue to be made in the most dogmatic and frenzied way by the mainstream press at home and abroad in a desperate attempt to divert attention from the deep economic crisis continually unfolding nationally and internationally. Dozens of countries are experiencing profound economic problems.

While billions of vaccination shots have already been administered worldwide, and millions more are administered every day (with and without people’s consent), humanity continues to confront many major intractable economic problems caused by the internal dynamics of an outdated economic system.

A snapshot:

1.      More rapid and intense inflation everywhere

2.      Major supply chain disruptions and distortions everywhere

3.      Shortages of many products

4.      “Shortages” of workers in many sectors worldwide

5.      Shortened and inconsistent hours of operation at thousands of businesses

6.      Falling value of the U.S. dollar and other fiat currencies

7.      Growing stagflation

8.      Millions of businesses permanently disappeared

9.      More income and wealth inequality

10.  High dismal levels of unemployment, under-employment, and worker burnout

11.  Growing health insurance costs

12.  Unending fear, anxiety, and hysteria around endless covid strains

13.  More scattered panic buying

14.  The stock market climbing while the real economy declines (highly inflated asset valuations in the stock market)

15.  Spectacular economic failures like Lehman Brothers (in the U.S. 13 years ago) and Evergrande (in China in 2021)

16.  All kinds of debt increasing at all levels

17.  Central banks around the world printing trillions in fiat currencies non-stop and still lots of bad economic news

18.  And a whole host of other harsh economic realities often invisible to the eye and rarely reported on that tell a much more tragic story of an economy that cannot provide for the needs of the people

The list goes on and on. More nauseating data appears every day. Economic hardship, which takes on many tangible and intangible forms, is wreaking havoc on the majority at home and abroad. There is no real and substantive economic improvement. It is hard to see a bright, stable, prosperous, peaceful future for millions under such conditions, which is why many, if not most, people do not have a good feeling about what lies ahead and have little faith in the rich, their politicians, and “representative democracy.” It is no surprise that President Joe Biden’s approval rating is low and keeps falling.

What will the rich and their political and media representatives say and do when most people are vaccinated, everyone else has natural immunity, and the economy is still failing? What will the rich do when economic failure cannot be blamed on bacteria or viruses? To be sure, the legitimacy crisis will further deepen and outmoded liberal institutions of governance will become even more obsolete and more incapable of sorting out today’s serious problems. “Representative democracy” will become more discredited and more illusions about the “social contract” will be shattered. In this context, talk of “New Deals” for this and “New Deals” for that won’t solve anything in a meaningful way either because these “New Deals” are nothing more than an expansion of state-organized corruption to pay the rich, mainly through “public-private-partnerships.” This is already being spun in a way that will fool the gullible. Many are actively ignoring how such high-sounding “reforms” are actually pay-the-rich schemes that increase inequality and exacerbate a whole host of other problems.

It is not in the interest of the rich to see different covid strains and scares disappear because these strains and scares provide a convenient cover and scapegoat for economic problems rooted in the profound contradictions of an outmoded economic system over-ripe for a new direction, aim, and control. It is easier to claim that the economy is intractably lousy because of covid and covid-related restrictions than to admit that the economy is continually failing due to the intrinsic built-in nature, operation, and logic of capital itself.

There is no way forward while economic and political power remain dominated by the rich. The only way out of the economic crisis is by vesting power in workers, the people who actually produce the wealth that society depends on. The rich and their outmoded system are a drag on everyone and are not needed in any way; they are a major obstacle to the progress of society; they add no value to anything and are unable and unwilling to lead the society out of its deepening all-sided crisis.

There is an alternative to current obsolete arrangements and only the people themselves, armed with a new independent outlook, politics, and thinking can usher it in. Economic problems, health problems, and 50 other lingering problems are not going to be solved so long as the polity remains marginalized and disempowered by the rich and their capital-centered arrangements and institutions. New and fresh thinking and consciousness are needed at this time. A new and more powerful human-centered outlook is needed to guide humanity forward.

Human consciousness and resiliency are being severely tested at this time, and the results have been harsh and tragic in many ways for so many. We are experiencing a major test of the ability of the human species to bring into being what is missing, that is, to overcome the neoliberal destruction of time, space, and the fabric of society so as to unleash the power of human productive forces to usher in a much more advanced society where time-space relations accelerate in favor of the entire polity. There is an alternative to the anachronistic status quo.

Shawgi Tell, PhD, is author of the book “Charter School Report Card.” His main research interests include charter schools, neoliberal education policy, privatization and political economy. He can be reached at stell5@naz.edu.

Economic and Social Crises Keep Deepening: 48 Points That Will Shape the Future

By Shawgi Tell

Not only have the policies of the rich at home and abroad not stopped economic and social decline, the rich are actually taking social irresponsibility to new levels and making things worse worldwide. They are unable and unwilling to solve serious problems plaguing humanity. Opening the path of progress to society is not on their agenda.

Connecting just a few dots in an intelligible way produces a clear picture of the destruction unfolding worldwide. It is no accident that more people are writing about a miserable dystopian future where people will have to develop new creative ways of defending the rights of all. The information below is especially timely given the cheap euphoria displayed recently by the short-sighted rich and their political and media representatives about the “solid” 850,000 jobs the U.S. economy “added” in June 2021.

  1. Inflation is increasing rapidly at home and abroad and the dollar’s purchasing power is still falling.

  2. Globally, supply chains affecting many sectors are not operating smoothly; many are worried about contrived and non-contrived disruptions lasting for months, even years.

  3. Ransomware incidents and major cyberattacks are not diminishing.

  4. Millions of U.S. workers are misclassified as contractors, which means that they do not have (generally weak) protections.

  5.  Thousands of companies at home and abroad are “zombie companies”—i.e., they don’t make a profit after paying down their debts, they just live a dead life.

  6. Student debt in the U.S. keeps soaring.

  7. College tuition in the U.S. and elsewhere keeps climbing.

  8. Marriage rates in the U.S. are at an all-time low.

  9. Birthrates are declining globally.

  10. The U.S. experiences a higher infant mortality rate and a higher prevalence of obesity compared with most OECD member countries.

  11.  The number of Americans who have moved back in with family or friends over the past 18 months is extremely high.

  12. Homelessness is high nationwide and increasing significantly in some major U.S. cities; crime is also up.

  13. Various “reforms” in countless sectors in many countries are superficial, phony, and non-substantive.

  14. Anxiety and depression remain widespread worldwide.

  15. Anti-depressant use remains high.

  16. Mass murders and killings have increased in recent years in the U.S.; so have social and civil unrest.

  17. Everyone everywhere is skeptical of the mainstream media and struggling not to be confused, ambushed, and humiliated every hour.

  18. Around the world hundreds of millions have joined the ranks of the poor over the past 18 months.

  19. Globally, well over ten million business have disappeared permanently and thousands more will disappear in the next five years.

  20.  Leading economic experts and officials have no real solutions for anything and people continually have low levels of trust in “experts” and government; the rich continue to operate with impunity.

  21. There is more polarization, division, and anger in society.

  22. Poverty and inequality keep growing worldwide; wealth concentration is staggering and unprecedented.

  23. Digital addiction and attendant problems won’t stop increasing.

  24. More U.S. college and university administrators, trustees, and leaders are abandoning the intellectual mission of colleges, restricting faculty voice, and turning college into Disney and fun.

  25. Getting simple things done is taking longer and becoming more convoluted and frustrating, especially when dealing with retailers, companies, and various agencies.

  26. Surveillance and police-state arrangements are multiplying rapidly and becoming more diverse and sophisticated at home and abroad.

  27. The media blackout on thousands who continue to experience serious side effects from vaccines continues.

  28. Newly-elected “progressive” politicians in the U.S. and elsewhere are proving to be as ineffective as the “old guard.”

  29. Privatization and deregulation keep increasing and wreaking havoc worldwide.

  30. Anglo-American imperialism thinks that constantly treating China and Russia as bogeymen will keep fooling the gullible and divert attention from deep problems in the Anglo-American world.

  31. The unionization rate of American workers is at a historic low, which is bad for all workers in all sectors.

  32. More than 130 million working Americans can live off their savings for six months or less before going broke.

  33. Mergers and acquisitions continue apace in 2021, concentrating even more wealth in even fewer hands.

  34. Central banks around the world keep printing phantom money while stock market bubbles grow larger.

  35. The U.S labor force participation rate remains low.

  36. The number of long-term unemployed (27 weeks or more) in the U.S. is still increasing.

  37. Millions of Americans have started to lose their jobless benefits.

  38. More than 40% of Black families and Latino families in the U.S. have no access to an employer-sponsored retirement plan.

  39. Black and Latino Americans are experiencing the biggest decline in life expectancy in decades.

  40. In recent years, overall job quality for Americans has deteriorated significantly.

  41. At least thirty million Americans lack access to high-speed internet.

  42. The U.S. opioid overdose crisis, which pharmaceutical companies were recently found guilty of sponsoring, persists.

  43. In Africa, nearly 40% of employed youth are considered poor.

  44. Around the world, nearly one out of ten people experience hunger and the number of undernourished people has grown by millions in recent years.

  45. The official unemployment rate exceeds 10% in at least 12 countries in (Western and Eastern) Europe. Fourteen countries fall into this category for North and South America. The real numbers are higher.

  46. More than 27% of youth in Central Asia and Southern Asia are not in employment, training, or education.

  47. In the past five years more countries have experienced violent conflict, while violent crime across the world has also increased.

  48. Despite endless happy economic news in the mainstream media, economies around the world are far from recovering; many never recovered from the Great Recession of 2008 and mass vaccinations will not solve deep structural economic problems.

The list goes on and on. This is the tip of the iceberg. Numerous problems persist on all continents. The facts above do not paint a picture of a bright and promising future for humanity. Widespread destruction prevails in the obsolete neoliberal world.

But there are also openings and contradictions that people from all walks of life are being compelled to harness in order to advance the public interest and restrict the illegitimate control and authority of major owners of capital. The desire for real progress is palpable and growing; it emerges from the concrete conditions as they present themselves today. The international financial oligarchy cannot provide any solutions to the problems plaguing humanity today, they just have more catastrophes in store for everyone and are blocking the empowerment of the people. None of these serious problems can be solved, however, so long as the people remain marginalized and disempowered. A new direction, orientation, and public authority are urgently needed.

Humanity is entering a new and deeper crisis with qualitatively different and more dangerous features. Crisis is a turning point that contains both peril and opportunity. Crisis is not always just a negative thing; it means things cannot continue in the old way and something significant is going to have to eventually give. It usually takes a serious crisis or trauma to catalyze and propel much-needed change. In this way, crisis overcomes stagnation and complacency and sets the stage for something new. The negation of the negation operates with a greater vengeance in such defining moments, giving rise to a new synthesis, a new equilibrium, which gives rise to yet another dynamic which must assert itself sooner or later. The dialectic lives and cannot be extinguished. What comes next in the complicated here and now is unfolding consciously and spontaneously.

The pace and rate of change today is exhilarating and people’s desire to protect the social and natural environment is growing. The trial of strength between capital-centered forces and human-centered forces is bound to increase because conditions are demanding a new authority that affirms the rights of all. An alternative is necessary and possible. What this will look like is in the hands of the people themselves. Only they can be relied on to usher in a bright future for humanity free of privileged private interests wrecking the social and natural environment.

Shawgi Tell, PhD, is author of the book “Charter School Report Card.” His main research interests include charter schools, neoliberal education policy, privatization and political economy. He can be reached at stell5@naz.edu.

How the Poor Continue to Die

By Kevin Van Meter

Republished from The Institute for Anarchist Studies.

Humanity has entered a period “where every day people are dying among strangers.”[1]  

Daily life itself has become “strange” and isolating as social distancing and quarantine measures are being lifted, then reenacted.  Federal troops operating as secret police in an attempt to occupy American cities, are repelled by protestors and the populace.  News cycles shriek and squall with nearly every pontification from the political class as they continue to carry out their “sacred mission,” which in recent memory is accompanied by squealing ineptitude in regard to improving the actual conditions of life.  Or, maybe they are not inept.  Months ago, at the onset of the pandemic, pundits and politicians had already declared that testing, treatments, and vaccines would not be offered to everyone.    

A pervasive level of violence, of frivolous intrusions into the routine behaviors of people of color, of a cruel disgust directed toward unhoused and poor peoples, of an impulsive need to regulate the expressions of those outside the gender binary, of a paranoid animosity toward immigrants and “antifa” and the “other” is being expressed by a particular sector of the population.  This sector – overwhelmingly good Christians, white, and middle-class – have been expressing this violence to such an extent that everyday life has been saturated by it.  For us “others” it is omnipresent, for many “others” it has been this way for five hundred years.  Yet, the poor continue to die, often “among strangers.”                      

In 1929 George Orwell was down and out in Paris and witness to the goings-on at a hospital that served the poor.  Seventeen years later he drew on his initial observations along with scribbled notes to complete the article “How the Poor Die.”  These words, published during the aftermath of the second World War, deserve our full attention in this moment: “However great the kindness and the efficiency, in every hospital death there will be some cruel, squalid detail, something perhaps too small to be told but leaving terribly painful memories behind, arising out of the haste, the crowding, the impersonality of a place where every day people are dying among strangers.”[2]  Then, as now, the gallant efforts of medical personnel, front-line and essential workers are often performed with kindness and efficiency, and with haste.  Nonetheless, the poor died in 1929 and 1946 in the ways they have continued to die, have always died.  In hospitals amongst strangers and in the streets, shanty towns and derelict apartments, in asylums and prisons, reservations and Bantustans. And if at all possible, in these same places, amongst relations, chosen as well as blood.    

Currently the cruelty of COVID-19 is compounded not just by social isolation but the realization that those who will die from this disease will do so among strangers.  On ventilators, in isolation units, in nursing homes, without the comfort of loved ones or human touch.  If the projections are correct, even with the recommended medical and social interventions, the dead will overwhelm the living.  It is likely that you, the humble reader, will be called upon to bury the departed, deceased, dead.        

As the dead overwhelm the living, dead labor will attempt to overcome living labor. “Capital is dead labour which, vampire-like, lives only by sucking living labour,” Karl Marx notoriously quipped, “and lives the more, and more labour it sucks.”[3]  What has become clear to large swaths of the populace, not just devotees to hundred and fifty year old texts, is that value and wealth in a capitalist society (the portion consumed in production and reproduction is dead labor) are produced only through the efforts and expended capacities of the working-class (which is living labor).  As Marx offered, “We mean by labour-power, or labour-capacity, the aggregate of those mental and physical capabilities existing in the physical form, the living personality, of a human being, capabilities which [they] set in motion whenever [they produce] a use-value of any kind.”[4]  And the great promise of Marx, of all revolutionaries, is that we will produce ‘goods and services’ useful to human beings in accordance with their needs and all of our abilities collectively.   

An economic system hell bent on endless growth has seemingly been replaced, possibly only temporarily, by shortsighted kleptocracy.  Extending well beyond the current administration, bourgeois society has embraced law breaking for themselves and harsh, hard-hearted punishment of the poor for minor property and drug “crimes.”  While this has always been, the contemporary American political class now flaunts its wrongdoings in full view.  With the endless accumulation of capital cast aside for the immediate acquisition of wealth, the imposition of work has become more malicious.  Front-line and essential workers and those in the service industry are being forced back to work at the threat of being destitute, with mass evictions looming.  The tiny deaths of exhaustion and daily injury have been replaced by the alternating certainty of death by starvation or death by pandemic.  Major retailers call them “heroes” as they take away their hazard pay.  And even school children, the sacrificial but essential workers of the future, are being sent back to their desks as home instruction and homework has not been sufficiently disciplinary.  All of this is evident with the return of a slogan, a capitalist maxim: Arbeit macht frei, or work will set you free. 

Pandemic and poverty is becoming plague and privation; those who are penniless will soon face famine. Without work there are no wages, without wages there are few ways to obtain the means of survival, the means of reproducing life itself.  Nevertheless, social reproduction is essential, and the work required – often unwaged, racialized, and gendered – is indispensable.  Since workers expending labor-power in the production process is how capitalism produces value, social reproduction is central to the capitalist mode of production.  As a result, the worksite where this is produced has become of key interest to the bourgeoisie.  Feminist scholar Silvia Federici noted this in the historical record: “The body, then, came to the foreground of social policies because it appeared not only as a beast inert to the stimuli of work, but also as the container of labor-power, a means of production, the primary work-machine.”[5]  The body as machine has been a central metaphor of our capitalist society, now the cogs are being discarded willy-nilly with automation and information computational processes that require fewer and fewer workers.  

Of the numerous realities the pandemic has uncovered, few are as stark as how front-line, essential, service industry workers are not just seen as replaceable but as expendable.  And many are out of work.  When a member of the working-class is without wages and the paltry handouts from the government vanish, reproduction of one’s biological functions and faculties are still required.  Working in front-line, essential, service industries is work as is seeking to obtain work in such sectors.  Working to reproduce one’s own capacities is work as is working without a wage to reproduce waged workers along with the “nonwaged, underwaged, not-yet waged, and no-longer waged,” to quote a contemporary feminist scholar.[6]  Hence, all of life has become work, with its simultaneous, and seemingly contradictory absence and total permeation.  Returning to Marx again:      

“the working day contains the full 24 hours, with the deduction of the few hours of rest without which labour-power is absolutely incapable of renewing it services.  Hence it is self-evident that the worker is nothing other than labour-power for the duration of [their] whole life, and that therefore all [their] disposable time is by nature and by right labour-time, to be devoted to the self-valorization of capital.”[7]  

Our whole lives have been subsumed by capitalism, and now, for far too many of our fellow human beings, death has become just as alienating.  

* * *

In collective, common, liberatory moments of ‘great kindness and efficiency,’ ‘amongst relations, chosen as well as blood,’ we are given a glimpse of “a paradise of unbroken solidarities.”[8]  However, the means of communication, mutual aid, and social relations required to build such a paradise are often destabilize by the very forces that should be constructing them.  

Another underling reality exposed by the COVID-19 pandemic is final confirmation that the Left in the United States has been historically defeated, the working-class decomposed.  Although generalized austerity, violent repression, mass incarceration, direct attacks on unions and community-based organizations, restructuring of everyday life toward neoliberal and individualistic ends, culture wars, drug wars, endless wars against the populace are partially to blame.  But the Left must take responsibility for its internal operational failures, nonsensical squabbles, unprincipled and self-servingly middle-class politics.  This has left working-class and poor people to their own defenses, with limited material resources, against the pandemic and unfolding crises.  In effect, the poor continue to die in part due to this ineptitude, purity politics, and too often defenses of middle-class ideals and irrelevant academic ideas.  

To define such a sector of the body politic would take many more words than can be allotted here.  Simply put, this includes those who are “practically minded” members of the Democratic Party establishment all the way leftward to include some of the newly articulated Democratic Socialist alternatives, along with much of organized labor, the non-profit sector, as well as do-gooders and providers of social services.  Where the formal Left begins and the bureaucrats, bourgeoisie, social workers, and middle managers of our misery end is unclear, as they are often indistinguishable and hence what that follows is imprecise.  Beyond the established Left there are ongoing mutual aid efforts, wildcat and rent strikes, and uprisings amongst everyday people, often led by young Black insurgents.  These radical, revolutionary, and daring, spontaneous but still organized, abolitionists, anti-capitalists, and commoners are outside of the formal body politic.

Defensive and self-serving reactions in the guise of “What about small landlords?” and “What about family owned businesses?” have erupted on the Left in response to calls for rent strikes, paid sick leave, hazard differentials, and a little workplace democracy with the same veracity as “What about good cops?” and “Don’t all lives matter?” on the right.  Universal demands for income, healthcare, and housing seemingly require an addendum that first we must distinguish between who are the deserving and who are the undeserving poor.  Then, typed into the social media fields of too many who know better: “I support unions but just not at my business or workplace,” “I support tenants’ rights but just not my tenants,” “I support Bernie but what about these horrible ‘__________.’”  While I am paraphrasing, we will get to those who fill these blanks shortly.  Since we have addressed how the middle-class Left and the bourgeoisie defends itself against the rabble informally, we must look at their formal practices.                 

Saving “establishments,” from restaurant chains to retail stores, “public infrastructure” from universities to the library and post office, “private associations” from business improvement districts and landlord lobbying groups to social service non-profits, as well as the facades of representative democracy and private property, are being managed by grinning neoliberal “little Eichmann’s.”  Or, possibly worse, those who wish they were.  Deep austerity measures have been instituted by and throughout these establishments, infrastructures, and associations while money flowing into them has been accumulated by bureaucracies impervious to worker or citizen demands.  

All of life has become work, and to manage this all of life has been infected by bureaucracy.  What is bureaucracy and why is it so pervasive?  Member of the French group Socialisme ou Barbarie, Claude Lefort, has an answer: “one overlooks the fact that in one and the same movement the bureaucracy establishes itself at the heart of social life and presents itself as an end, that it responds to a technical need and subordinates it to the imperative of power.”[9] Bureaucracies, even progressive and liberal ones, have sought to silence working-class voices: in social services they sought to silence those of unemployed people and welfare recipients, in trade unions expressions of working-class self-activity, political parties those of the masses, universities those of faculty and student shared governance, corporations those of workers initiatives and demands, healthcare those of the ill and infirm, landlords those of their tenants, the legal system and prisons those of prisoners, and then there are others.  At the moment you can hear bureaucrats mumbling out of the side of their mouths, a proverb: “we have effectively silenced them in life, how dare they not be silent in death.”              

Moreover, the desperate need to feel “right” and “moral” is cover for those who ignore structural inequalities and stark differentials of power that exist and are now amplified in our society.  Far worse, after five hundred years of struggle against capitalism and the state most of the Left is willfully ignorant how social change occurs.  Nearly immeasurable personal choices and consumerist acts – such as voting, buying local, eating vegan or organic, riding bikes, being sustainable or peaceful or mindful or, which is by far the worst, conscious – are held as the apex of political action.  Or, maybe by appealing to the “better natures” of bosses and landlords, billionaires and politicians or “speaking truth to power,” things will progress, improve, change.  Worst still, if our arguments are right and true, clear and concise, we will win in the free marketplace of ideas.  And finally, as a great comedic mind once offered, “rights are the last resort of a [person] with no argument” and the Left’s call for “rights” ignore how often they are suspended in times of crisis or have never existed for large swaths of the planet’s populace.  This should be absolutely apparent to anyone who has been on the streets of a supposedly liberal Pacific Northwest city over the past few weeks, or has simply been observing.  Now, that we have considered how the Left views how the actual lives and deaths of working-class and poor peoples as externalities in formal ways, the maliciousness of their informal practices should be noted too.  

A self-serving and moralistic politics has dominated the Left as of late, where faux outrage meant to condemn the personal lifestyles and decisions of the target while holding one’s own personal lifestyles and decisions as morally superior.  Meaning, the illusion of choice and free will results in a working-class bartender being scolded by their middle-class customer, who is in the midst of guzzling down another twenty-dollar cocktail, for taking a cheaper Uber / Lyft home after a twelve hour shift rather than the more expensive local cab company.  Notions of self-care, GoFundMe campaigns for medical bills, Buzzfeed articles and similar lists given as commandments – “20 Books You Must Read this Year,” “6 ways to be antiracist, because being ‘not racist’ isn’t enough” – are individual solutions, often impossible ones, to what are social problems.  These developments are often coupled with a crises of representation and measure along with the disappearance of class as an operating category.  ‘Interlocking oppressions’ and ‘identity’ were to augment and complement class as “new measures of oppression and inequality,” to use the apt words of Keeanga-Yamahtta Taylor, rather than replace it.[10]  Or, in fact, it is the middle-class assumptions of the contemporary Left and radical forces that have placed various issues outside of, above, and primary to class because it allows the middle-class to claim legitimacy within a fundamentally unjust and undemocratic system at the expense of working-class and poor peoples.  It is as if the Left has forgotten that, “Immigrant issues, gender issues and antiracisms are working-class issues.”[11]  Nevertheless there are issues neighboring these too.              

Behind call outs, privilege politics, and reinvigorated essentialisms, one can hear the tired slogans: “Ho Ho Ho Chi Minh, the NLF is gonna win!” and “Fight the People!”  According to various factions that splintered the Students for a Democratic Society in 1969, of which the Weather Underground is the most pernicious, the American war in Vietnam was bad, so the Vietcong was good; politically conscious radicals were good, white working-class people were bad.  Purges, purity tests, self-criticism, or better off self-flagellation, immediately followed such recitations.  

Not then, and certainty not now, have such measures resulted in strong liberatory movements much less substantive, material or otherwise, gains for oppressed and working-class people.  Nor have movements themselves found transformative ways to address internalized oppression and behaviors, even with the gallant efforts led by women and trans people of color.  After fifty-years of such politics, one would think with the clearly observable historic defeat of Left and radical forces with the rise of incipient fascism other avenues would be explored, other ideas rediscovered and developed, other strategies and tactics deployed.  

In the streets many revolutionaries now call forth “fire from heaven,” not out of revenge or resentment but for our very survival.  Emile Zola was not so forgiving in Germinal: “There he stood with arms raised like an inspired prophet of old, calling down the wrath of God upon the murderers, foretelling the age of justice and the coming extermination of the bourgeoisie by fire from heaven, since it has committed the foulest crime of all and caused the workers and the penniless of the world to be slain.”[12]  Though, what is to be done when those who “caused the workers and the penniless of the world to be slain” are not just the political class, the bourgeoisie, Republican governors and liberal mayors but our fellow citizens?  Fellow citizens refusing to wear masks, coughing in the faces of essential workers and spitting on cashiers, setting up roadblocks to harass those fleeing wildfires, driving through crowds of protestors and arming themselves against their neighbors.  And, with particular vitriol, calling for and in some cases actively exterminating Black and Indigenous people of color, trans women of color, immigrant children, the elderly and infirm.  

As I have claimed herein, the Left not only lacks a concept of social change, it is entirely unprincipled.  But even without principles the Left is being educated nightly as it is struck over the head by police batons.  And the radical and revolutionary movements are discovering its principles and power in concert with thousands of others who have set the fires from heaven upon police stations. Banks, bosses, landlords will burn too.  

Where does one find prospects and possibilities within this plague?  Now, as always, in the new struggles that are emerging, and new social antagonisms being expressed.  As I sat down to write this it is the multitudinous mutual aid projects growing in barren landscapes, then those standing “with arms raised.”

For those of us who are radicals and revolutionaries, we will be called to do immoral things in this crisis. Immoral by the standards of the Left and progressive moralists and possibly immoral by our own standards.  It is clear that the Democratic Party establishment and Left which aligns itself with it has made peaceful revolution impossible.  Whereas the Left is more interested in its own self-preservation and defense of its position in the capitalist, white supremacist, heteronormative, settler colonial, property owning systems then a substantive redistribution of wealth, land, power.  Whereas much of the radical Left would rather confront each other over perceived slights than directly confront power and construct counterpowers.  Currently the streets of Portland, Chicago, New York along with the streets of rural towns are all bursting with protestors. They are refusing to delegate responsibility for their futures to agencies outside of themselves, to representatives and non-profits, to the so-called official organizations of the working-class.  However, now, rather than dying amongst strangers, thousands of unhoused, poor, women, trans and gender non-conforming people, people of color, Indigenous, immigrant, imprisoned, “others,” and militant accomplices who accompany them have chosen the possibility of death rather than certain death so that they may live. So that we all may live.     

An organizer, autonomist, and author, Kevin Van Meter is the author of Guerrillas of Desire: Notes on Everyday Resistance and Organizing to Make a Revolution Possible (IAS/AK Press, 2017), co-editor of Uses of a Whirlwind: Movement, Movements, and Contemporary Radical Currents (AK Press, 2010), and is currently writing his next book Reading Struggles: Autonomist Marxism from Detroit to Turin and Back Again (Forthcoming, AK Press, 2021-2022).  Van Meter can be reached via his website: www.readingstruggles.info.   

Notes

[1] George Orwell, “How the Poor Die” in In Front of Your Nose, 1945-1950: The Collected Essays, Journalism and Letters of George Orwell, Sonia Orwell and Ian Angus, eds. (Boston: David R. Goodine, 2000), 232.

[2] Ibid. 

[3] Karl Marx, Capital, Volume 1, Ben Fowkes, trans. (London and New York: Pengiun Books, 1990), 342. 

[4] Marx, Capital, Volume 1, 270. 

[5] Silvia Federici, Caliban and the Witch: Women, the Body, and Primitive Accumulation (Brooklyn, NY: Autonomedia, 2004), 137-138. 

[6] Kathi Weeks, The Problem With Work: Feminism, Marxism, Antiwork Politics, and Postwork Imaginaries (Durham and London” Duke University Press, 2011), 121.  

[7] Marx, Capital, Volume 1, 375. 

[8] Rebecca Solnit, A Paradise Build in Hell: The Extraordinary Communities that Arise in Disaster (New York: Penguin Books, 2009), 3. 

[9] Claude Lefort, “What is Bureaucracy?” in The Political Forms of Modern Society: Bureaucracy, Democracy, Totalitarianism, John B. Thompson, ed. (Cambridge, MA: The MIT Press, 1986), 119-120.

[10] Keeanga-Yamahtta Taylor (ed.), How We Get Free: Black Feminism and the Combahee River Collective (Chicago: Haymarket Books, 2017), 4.

[11] Keeanga-Yamahtta Taylor, #BlackLivesMatter to Black Liberation (Chicago: Haymarket Books, 2016), 216.

[12] Emile Zola, Germinal (London and New York: Penguin Books, 1988), 413. 

Systemic Racism and the Prison-Industrial Complex in the 'Land of the Free'

[Image by Keith Negley via NY Times]

By Holly Barrow

Following the tragic murder of George Floyd at the hands of Minneapolis police officer Derek Chauvin on 25th May, the world has erupted into protest to demand an end to the vicious racism which continues to infiltrate society. At the forefront of this crucial public discourse on race lies the criminal justice system as it has disproportionately targeted and traumatized BIPOC (Black, Indigenous and people of color) communities for decades.

Systemic racism and inequality is intrinsic to law enforcement in the US, with mass incarceration riddled with racial disparities. From the thirteenth amendment loophole to the War on Drugs, Black communities have suffered exponentially under this facade of ‘justice’, with families torn apart as a result. The War on Drugs is in fact one of the plainest and most brazen examples of heavily racialized laws borne out of a desire to incriminate Black communities. When looking at initial federal sentences for crack cocaine offenses, such inequalities within law enforcement become strikingly clear: conviction for crack selling - more heavily sold and used by people of color — resulted in a sentence 100 times more severe than selling the same amount of powder cocaine — more heavily sold and used by white people.

This is no coincidence and just one example of a system patently stacked against low-income, Black communities. We need only look at some key statistics to recognize how deeply this goes: African Americans are more likely than white Americans to be arrested, are more likely to be convicted and are more likely to experience lengthy prison sentences. Beyond this, African American adults are 5.9 times as likely to be incarcerated as white adults.

In light of such disproportionate arrest and convictions of Black people in the US, dismantling the current prison system - particularly the prison-industrial complex - is key in the fight against racism. The prison-industrial complex describes the overlapping interests of government and industry; essentially, it refers to the corruption at the heart of the criminal justice system in the use of prisons as a mechanism for profit.

This is a system that abolitionists and activists have been attempting to eradicate for decades as it has become increasingly clear over the years that there is a very real and dangerous incentive to incarcerate human beings. With the rise of for-profit prison systems has come further exploitation of predominantly African-American men and other ethnic minorities. With regards to class, this system additionally hurts low-income citizens at a significantly higher rate, with many recognizing the harrowing reality that, in the US, poverty is often treated as a crime.

Poor and minority defendants are typically unable to access the same level of protection and defense as their wealthier counterparts. Similarly, the state recognizes the likelihood of their inability to afford bail, with over 10 million Americans in prison as they await trial on low-level misdemeanors or violations simply because they cannot afford the bail set for them. This keeps prisons filled; a key proponent of the prison-industrial complex.

With police officers incentivized to make arrests as they are aware that police departments will not be funded adequately if there is no motive to do so, and billion-dollar corporations having stakes in the private prison system - from technology such as tagging to hospitality for inmates - incarceration has become a means to generate wealth and boost local economies. This comes at the expense of the most marginalized groups, namely poor people of color.

Regrettably, this line between ‘justice’, ‘protection’ and corporate interest is becoming comparably distorted across immigration removal centers. And again, it is BIPOC who largely fall victim to this. Detention, surveillance and border wall construction have all become big business, with approximately two-thirds of all detainees being held in for-profit facilities. Tech companies have thrived off of tracking migrants, with software company Palantir holding a $38 million contract with ICE (Immigration and Customs Enforcement).

To provide further insight into just how money-oriented the detention of predominantly vulnerable individuals - such as asylum seekers - has become, we can observe the distressing rise in shares in the largest prison company in the world. Shares in CoreCivic — which runs both private prison facilities and detention centers — spiralled by 40% when Trump was elected as president. This came following his promises to deport thousands and demonstrates a clear recognition that this would see private, for-profit immigration detention facilities boom.

To deny the concerning correlation between incarceration - both within prisons and detention facilities - and investment suggests willful ignorance. The treatment of prisons and detention facilities as money-making machines is of detriment to democracy and makes a mockery of those who hail America as the ‘land of the free.’

In fighting systemic racism, we cannot neglect to tackle the prison-industrial complex. Its roots and very mechanisms are rooted in the oppression of the most marginalized.

Holly Barrow is a political correspondent for the Immigration Advice Service; an organization of immigration lawyers based in the UK and the US

Panama Papers: Capitalism Working Well for Obscenely Rich

By John Passant

The Panama Papers show us, once again, that capitalism is a system of absolute greed. It is a system where capitalist governments help their mates to hide their income and wealth while all the time businesses pretend they are paying their "fair share" of tax.

The 11.5 million leaked documents from Mossack Fonseca contain details of the 14,000 clients of the Panama headquartered company and the 220,000 shell companies it has set up for them in tax havens around the globe.

Why tax havens? Not only do these countries have no or low tax rates they also have secrecy provisions which protect the income and assets of wealthy individuals and companies from the prying eyes of state bodies like tax offices and company regulators.

Shell companies mean that the ostensible owners of the companies are often front men and women for the real owners or are companies whose ultimate owners are untraceable. One senior tax officer many years ago summed up tax havens for me when he said they kill the paper trail.

Take Wilson Security here in Australia for example. It runs the "security" on Australia's asylum seeker and refugee gulags, Manus Island and Nauru. It is owned by Wilson Offshore Group Holdings (BVI) Limited, a British Virgin Islands company set up by Mossack Fonseca to protect the true identity of the owners from any governmental scrutiny.

Thomas Kwok, one of those true owners, is in jail for fraud in Hong Kong. The other, his brother Raymond Kwok, was acquitted of similar charges. They had resigned as the directors of Wilson Offshore Group Holdings (BVI) Limited shortly after the charges were laid. Two companies, Winsome Sky and Harmony Core, replaced them as directors. The Panama Papers show the brothers control those two companies.

The reason for these arrangements? Wilson Security would not have won Australian government contracts if it knew that one of the real owners was in jail for fraud.

By the way, Wilson Security also supplies the guards for various government bodies, including the Australian Tax Office (ATO).

It is not just Wilson Security. The ATO is investigating 800 Australian entities named in the leaked documents. The Panama Papers refer for example to Australian banks and BHP Billiton. Banks are involved because you have to get the money out of your jurisdiction and into the tax havens, often via more reputable tax haven countries that supposedly aren't, like Singapore, Hong Kong, Switzerland, The Netherlands or Luxembourg.


Ripples

Iceland's Prime Minister, in the face of big demonstrations, has gone on indefinite leave (resigned) after it was revealed his wife held shares through a shell company in the very banks her husband was negotiating a bail out with. UK Prime Minister David Cameron inherited wealth from his Dad whose Panama shell companies made tax free money for 30 years.

Australia's current Prime Minister Malcolm Turnbull, one of Australia's richest men, has what appear to be high earning investments in or through the Cayman Islands. He used to have an investment in a vulture fund (a hedge fund that buys distressed debt) based in the Cayman Islands. He sold out of that and bought into some hedge funds (unregulated funds that long and short the assets they hold).

The point here is not whether they are legitimate or not or that the investors pay their "correct" amount of tax. It is that they are part of the game the rich and powerful play to increase their individual wealth and that that game is rigged in their favour by governments too afraid to crack down on "legitimate" investments in tax havens.

So the problem is the tax havens is it? Before we get too carried away with colonial outrage, remember that many tax havens exist today as outposts or former outposts of empire set up to hide the money of British colonialists and capital. Some of them, like the British Virgin Islands, the Cayman Islands and Bermuda, are British Overseas Territories, still under some form of British control. At the centre of these tax havens is the City of London, one of the main financial hubs of British, and indeed, global capitalism.

The US has its own equivalent tax havens, in particular Delaware where half of all Wall Street companies are incorporated for the low state taxes and slack company regulation.

So the traditional view of tax havens as sunny places for shady people is actually not correct, unless climate change has turned the City of London into a tropical paradise.


Tax avoidance

These revelations are not new. They are the latest in a range of leaked and other information about the dark underside of capitalism. We have had the Luxembourg leaks, the Tax Justice Network which estimated that between US $21 trillion and $32 trillion is held in havens (about twice US GDP and five times the wealth of Australia all up), the TJN/United Voice report into tax avoidance by Australian companies, and the ATO release recently of tax data of public and private big business companies which shows that well over one third pay no income tax and the majority pay less than the statutory rate of 30 per cent. Apart from a bit of huffing and puffing nothing has happened to address rampant tax avoidance by big business.

Big business tax avoidance gives the lie to the Turnbull mantra that we have to live within our means. This mantra will be the justification for the ongoing cuts to public health and education, to public transport and to social welfare. There would be no budget crisis if we addressed big business tax avoidance. Our mantra in response to Turnbull should be to tax big business and the rich.

Using tax havens and shell companies is part of a wider capitalist dynamic of hiding assets and arrangements from prying tax and other State body eyes. It reflects the business view that any profit is "theirs," rather than the reality that it arises from the unpaid labour of workers.

As Google Chair Eric Schmidt said about his company's tax avoidance activities around the globe, activities which have seen it funnel almost $10 billion into Bermuda, saving $2 billion in taxes:

"The company isn't about to turn down big savings in taxes. It's called capitalism. We are proudly capitalistic. I'm not confused about this."

The problem of tax avoidance is systemic. It requires a systemic solution, a democratic and socialist revolution o put the vast majority in control of the assets of the world and to organise production to satisfy human need, not to make a profit. In such a world we would not need tax havens and shell companies.

In the interim we on the left must continue to argue for taxing the rich and to build all the campaigns against the injustices social and economic that capitalism creates, including the austerity agenda which is about transferring wealth from labour to capital.

We could tax the rich to fund better services. None of the parties of neo-liberalism - the Liberals and Nationals and the Labor Party - are going to really do that. At best they will offer minor changes as part of a smokescreen to give the impression of doing something without actually doing anything major to upset the rich and powerful, the capitalists, whose system drives them to avoid tax and hide their affairs in secrecy jurisdictions.

Now I know none of this tax the rich stuff will in reality get on the agenda willingly of the ALP. The answer is that when the current or future governments attack funding for workers or the poor, attack public schools, public hospitals and public universities, the fightback against those attacks has the potential to challenge the ruling class and its systemic tax avoidance and secrecy. To tax the rich we must build the fight against austerity.



Originally published by Solidarity.