poverty

On the Concept of "Time Poverty"

[Photo credit: Marisa9 / iStock / Getty Images Plus]


By Rugveda Sawant

“In capitalist society spare time is acquired for one class by converting the whole life-time of the masses into labour-time.”

-Karl Marx

There is a considerable amount of literature on “time-poverty” concocted by researchers and policy-makers. The term is used to denote lack of time an individual experiences to devote to personal and social activities which ends up negatively impacting their well-being.

Apart from the already established definition of the term, a fresh deconstruction of it may lead one to observe that if poverty is understood as a lack of (financial) resources, time-poverty may be understood as a lack of (financial) resources to purchase time rather than lack of time itself. The worker who does not own any means of production and has nothing but his labour-power to sell in order to sustain himself, must do so by lending it out for a certain duration of time to the capitalist who purchases it in order to extract surplus value. However, it becomes important to note that what is being sold and purchased here is not time, but labour-power. Time is not a commodity- it can be a measure of value but has no value in itself; it cannot be produced or purchased. Defining “time-poverty” as “lack of time” helps mask this simple contradiction; we are stuck with a term that fails to delineate the exact relationship between time and poverty, leading to the proposal of flawed solutions for a legitimate issue.

Even though a more liberal understanding is that people, no matter what their financial status, can experience “time-poverty”, a more sophisticated argument observes that it is an issue more relevant to and persistent amongst the income-poor. [1] To avoid ambiguity, let us replace “poor” with the working class and “rich” with the capitalist class. The working class earns its money through ‘wages’ while the capitalist class earns it through ‘profits’. The following illustration by Engels will help us understand how ‘wages’ and ‘profits’ are earned:

“The capitalist takes the labourer into his workshop or factory, where all the articles required for the work can be found – raw materials, auxiliary materials (coal, dyestuffs, etc.), tools, and machines. Here, the worker begins to work. His daily wages are, as above, 3 shillings, and it makes no difference whether he earns them as day-wages or piece-wages. We again assume that in 12 hours the worker adds by his labour a new value of 6 shillings to the value of the raw materials consumed, which new value the capitalist realizes by the sale of the finished piece of work. Out of this new value, he pays the worker his 3 shillings, and the remaining 3 shillings he keeps for himself. If, now, the labourer creates in 12 hours a value of 6 shillings, in 6 hours he creates a value of 3 shillings. Consequently, after working 6 hours for the capitalist, the labourer has returned to him the equivalent of the 3 shillings received as wages. After 6 hours’ work, both are quits, neither one owing a penny to the other.

“Hold on there!” now cries out the capitalist. “I have hired the labourer for a whole day, for 12 hours. But 6 hours are only half-a-day. So work along lively there until the other 6 hours are at an end – only then will we be even.” And, in fact, the labourer has to submit to the conditions of the contract upon which he entered of “his own free will", and according to which he bound himself to work 12 whole hours for a product of labour which cost only 6 hours’ labour.

Similarly with piece-wages. Let us suppose that in 12 hours our worker makes 12 commodities. Each of these costs a shilling in raw materials and wear-and-tear, and is sold for 2.5 shillings. On our former assumption, the capitalist gives the labourer .25 of a shilling for each piece, which makes a total of 3 shillings for 12 pieces. To earn this, the worker requires 12 hours. The capitalist receives 30 shillings for the 12 pieces; deducting 24 shillings for raw materials and wear-and-tear, there remains 6 shillings, of which he pays 3 shillings in wages and pockets the remaining 3. Just as before! Here, also, the worker labours 6 hours for himself – i.e., to replace his wages (half-an-hour in each of the 12 hours), and 6 hours for the capitalist.” (Frederick Engels, Wage Labour and Capital, 1891)

Profits are earned by appropriating unpaid labour of the working class. Profit constitutes the amount of time that the worker has spent in producing value that does not belong to him. The magnitude of profits can be increased by increasing intensity of labour, productiveness of the labour or by increasing the length of the working day. But no matter how these three variables shift, (relative) wages and profits remain in inverse proportion to each other. [2] Lower the wages, more the profit. More the labour-time that remains unpaid, more the capitalist gains. Once this is clear, one can start to see how “lack of time” that one class of the society faces is a gain for the other. The issue of “lack of time” devoid of class analysis leads to vague rhetorics [3] and empty solutions. All sincere critique must elucidate how the “lack of time” that the “poor” face and which affects their “well-being” is an inevitability under capitalist production. [4]

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It is argued that women are the most “time-poor” since they are ones who usually perform domestic and household work which (widely) remains unrecognized and unpaid. The burden of performing these tasks leaves them with very little time for themselves. Recognition, remuneration and provision of alternative arrangements of such work will lead to diminution of the time deficit that women face. Researchers by employing the methodology of time-use surveys have made proclamations like “rich women work harder than poor men”. [5] Such statements are as contrived as the terms “rich” and “poor” are abstruse. Women unarguably are burdened with domestic and household work, which to a very large extent remains gendered. However the premise that it is “unpaid” is false. Even though this work may not be remunerated directly, it is accounted for in the wages earned by the worker:

“The manufacturer who calculates his cost of production and, in accordance with it, the price of the product, takes into account the wear and tear of the instruments of labour…In the same manner, the cost of production of simple labour-power must include the cost of propagation, by means of which the race of workers is enabled to multiply itself, and to replace worn-out workers with new ones. The wear and tear of the worker, therefore, is calculated in the same manner as the wear and tear of the machine.

Thus, the cost of production of simple labour-power amounts to the cost of the existence and propagation of the worker. The price of this cost of existence and propagation constitutes wages. The wages thus determined are called the minimum of wages. This minimum wage, like the determination of the price of commodities in general by cost of production, does not hold good for the single individual, but only for the race. Individual workers, indeed, millions of workers, do not receive enough to be able to exist and to propagate themselves; but the wages of the whole working class adjust themselves, within the limits of their fluctuations, to this minimum.”  (Karl Marx, Wage Labour and Capital, 1847) 

Therefore, even if household and domestic work was to be paid for separately, it would lead to a relative decrease in wages, not leading to any sort of substantive improvement in the life of the working class. The gendered nature of the oppressive burden of household work can be understood as an effect of the patriarchal system but the cause of it lies in the exploitative nature of class relations under capitalism. The patriarchal system itself, at the outset, is a result of the historical division of labour within a class society. The condition of women being domestic slaves to their husbands will not be made better, in any real sense, by demanding for household work to be remunerated.[6] According to the calculations of the capitalist, it is already recognised and paid for in the wages of the worker. As explained above, the impoverished status of the working class is directly linked to the prosperity of the capitalist. Therefore, any demands for alternative arrangement or socialisation of domestic work that might emancipate women from their current state of slavery and proposals about providing free goods and services via public policy, remain incompatible with and a utopia under the capitalist mode of production.

The burden of “unpaid work” that leads individuals to face a “lack of time” is a legit issue. However, it cannot be understood in isolation from the process of production of which it is a part. Marx writes:

“All the slave’s labour appears as unpaid labour. In wage labour, on the contrary, even surplus-labour, or unpaid labour, appears as paid. There the property-relation conceals the labour of the slave for himself; here the money-relation conceals the unrequited labour of the wage labourer.” (Karl Marx, Vol 1., Capital, 1887)

It is this very phenomenon that can so easily lead one to think of household work (domestic slavery of women) as unpaid while overlooking the exploitative nature of class relations within the capitalist mode of production. The concept of “time-poverty“, which wrongly posits time as a commodity, furthers the concealment of the worker’s unpaid labour. The worker appears to be selling his time and not the value creating source that is his labour-power. It becomes easier then, for the price of this “time” to be detached from and determined independently of the value created by him. Terms like “time-poverty” when undisguised reveal themselves as nothing but plain, old poverty. Averse to the dilution and deviation that this term begets, one must not lose sight of the fact that the fight for personal and leisure time is inextricably tied with the fight for socialism.

 

Notes

[1] “...time-poverty among the better off accounts for very little of the total, and that genuine time poverty is more than a qualitative loss resulting from individual choices. Rather, most people who are time-poor are also income-poor and suffer from other (often multiple) deprivations.” Ghosh, “Time Poverty and the Poverty of Economics,” 2.

[2] “The share of (profit) increases in the same proportion in which the share of labour (wages) falls, and vice versa. Profit rises in the same degree in which wages fall; it falls in the same degree in which wages rise.” Marx, Wage Labour and Capital, 37.

[3] “Though it is difficult to say how much leisure or free time a person needs, one can say that a person who does not get enough leisure is under time stress.” Hirway, Understanding Poverty, 28.

[4] “Capitalist production, therefore, of itself reproduces the separation between labour-power and the means of labour. It thereby reproduces and perpetuates the condition for exploiting the labourer. It incessantly forces him to sell his labour-power in order to live, and enables the capitalist to purchase labour-power in order that he may enrich himself.” Marx, Vol. 1. Capital, 406.

[5] Ultra-poor women rank at the bottom in terms of burden of total work. They spend 32.74 per cent of their total time (53.42 hours) on work. They are followed by non-poor women (and not by ultra-poor men) who spend 31.66 per cent of their time (53.18 hours) on work. That is, rich women work much harder than ultra-poor men in terms of the time put into work. Hirway, Understanding Poverty, 35. Also quoted by Jayati Ghosh in “Time poverty and the poverty of economics” with an addition that “This partly reflects the lack of paid work for poor men as well as the greater burden of unpaid work borne by women in their own households.”

[6] “Payment for the housewife’s “reproductive labour” in the house, i.e. for domestic slavery, in addition to keeping the working family’s standard of living the same, and consequently the level of the housewife’s freedom on the same level as before, is something that would serve to perpetuate the idea of the housewife as the beast of burden that bears on her back all the social pressure exerted on working-class homes (including psychological and physical abuse). It would keep her away from social life, imprisoned within the four walls of her house, making her numb with chores that mangle her body and dull her mind.” Rey, Is housework an “unpaid” job?

On Income and Wealth Inequality in Capitalism's Neoliberal Stage

By Prabhat Patnaik

The fact that income and wealth inequalities have increased quite dramatically under the neo-liberal regime is beyond dispute. The empirical work by Piketty’s team bears out the increase in income inequality. They use income tax data to infer about the share of the top 1 per cent of the population of a country in its national income. One may raise objections to this method of estimation, but the conclusions are so overwhelming that one can scarcely quarrel with them. In India’s case for instance Piketty and Chancel find that the top 1 per cent which accounted for just 6 per cent of national income in 1982 increased its share to over 22 per cent in 2013 and a similar figure in 2014, the latest year for which they have estimates. In fact the share in 2013 was the highest it has ever been since income tax was introduced in India in 1922.

Piketty’s theoretical explanation for such increases in income inequality however is totally untenable, as it is based on the presumption that a capitalist economy always operates at full employment, which is not only empirically false but also logically flawed, for in such a case the system would lack any disciplining device without which production cannot occur under it. One does not have to go far however to find a proper theoretical explanation for the increase in income inequality: the removal of all constraints on technological-cum-structural change under a neo-liberal economy increases the rate of growth of labour productivity to a level where, notwithstanding whatever increase occurs in GDP growth, the rate of growth of employment falls compared to earlier and also falls below the natural rate of growth of the work-force, so that the relative size of the labour reserves in the work-force increases; this keeps the real wage rate tied to a subsistence level even as the rise in labour productivity growth increases the share of surplus in total output, and hence the level of income inequality. Piketty’s findings about an increase in personal income inequality are rooted in this increase in class income inequality that neo-liberalism entails (see also Economic Notes in People’s Democracy December 8).

Likewise there has been a dramatic increase in wealth inequality under neo-liberalism at least in the countries of the global south. Between 2000 and 2021, according to Credit Suisse data, wealth inequality increased even in the United States; but this increase was less pronounced than the increase in countries like India and Brazil. True, wealth inequality estimates are always somewhat dicey, since they are influenced by stock market fluctuations. In a period of stock market boom not only does the estimate of total wealth gets artificially inflated even when there has been no change in the physical stock of assets; but, since the rich are much more active in the stock market, their share in wealth also goes up, showing an increase in wealth inequality which gets reversed in a period of stock market collapse. Even so however when India shows an increase in the share of the top 1 per cent in total wealth from around 32 per cent in 2000 to 40.6 per cent in 2021, and when Brazil shows an increase from around 43 per cent in 2000 to 49.3 per cent in 2021, this increase cannot be explained by any evanescent accrual of capital gains to the top 1 per cent of the population. There are clearly more fundamental factors at work.

One such fundamental factor is the rise in income inequality itself that is rooted in the rise in the share of economic surplus in output. If we leave aside the accrual of transitory capital gains, any rise in wealth occurs through savings. This may at first sight appear odd: it may be thought that the rise in wealth would occur only through investment in physical assets; but saving may occur, and hence a rise in wealth, even when there is no investment in a country during a particular period, if it lends these savings abroad, that is, increase its wealth in the form of claims on another country. When the share of the rich in national income rises, since the rich save a higher proportion of the income accruing to them than the poor, their share in the total savings of the country rises even faster. This means that the share of the rich at the margin in the increase in a country’s wealth rises compared to what it had originally been, which means that their share in a country’s total wealth increases. A rise in income inequality in other words ipso facto entails a rise in wealth inequality.

A second factor works in the same direction, and that is what Marx had called “centralisation of capital”. Because of technological-cum-structural change, business shifts over time from small capital to big capital. This happens because new processes and products become available over time which require a growing minimum size of capital for their introduction and which therefore can only be introduced by big capital and not small capital, leading over time to a shift of business from the latter to the former. This shift has exactly the same effect as the rise in the share of economic surplus in total output discussed above: with the shift of business there is also a shift in the distribution of profits from small to big capital (that is, if small capital at all remains in business and is not totally eliminated in which case its entire profits are captured by big capital); since the proportion of savings out of profits is higher for big capital than for small capital, this raises the share of savings in output and also the share of the top 1 per cent within total savings and hence at the margin in total wealth. Wealth concentration therefore is simply implicit in the process of centralisation of capital.

So far we have been talking of changes in wealth concentration at the margin through changes in the distribution of savings. It may be asked: what if investment falls short of savings at the base level of capacity utilisation so that there is a realisation problem? But if there is a realisation problem, i.e., if there is insufficient demand when output is produced at the base level of capacity utilisation, then the realised savings will be lower than the savings that would have been generated from output at the base level of capacity utilisation; but its distribution across classes, i.e., between petty producers and the big capitalists, or between small capitalistsand big capitalists, will remain the same as if all of it was being realised. The tendency towards wealth concentration therefore would remain unaffected by whether or not there is a realisation problem.

A third factor works towards making wealth distribution more unequal, in addition to the two we have mentioned till now. And that is what Marx had called primitive accumulation of capital, which covers not only cases where land is acquired from peasants gratis or at throwaway prices by big capital, but also cases where any land acquired at the then prevailing market price increases in value when industrial units are set up on them or townships are built upon them. This case of an increase in the price of land may at first sight be thought of as being identical with capital gains made on the stock market; but there is a basic difference: while stock market booms may collapse reversing the capital gains, land prices have generally only an upward movement. The acquisition of land even in such cases therefore has to be seen as primitive accumulation, since the peasants are paid a price way below the now-prevailing market price of land (that enters into the calculation of wealth).

The numerous ways that public resources are transferred gratis into the pockets of big capitalists are these days an important source of primitive accumulation of capital. This is done in the name of providing incentives for promoting growth, which is supposed to benefit everyone. But quite apart from such open ways of effecting increasing wealth inequality, big capital also engages in various forms of skulduggery for this purpose. There are instances of communal riots being engineered so as to evict people from their land that is then acquired at a throwaway price by big capital not necessarily directly but at some remove.

All these ways of deliberately effecting an increase in wealth inequality get a fillip in the period of neo-liberalism. All objections to them are brushed aside by the neo-liberal apotheosis of private expropriation as benefitting everyone, while simultaneously vilifying public enterprise.

Prabhat Patnaik is an Indian political economist and political commentator. His books include Accumulation and Stability Under Capitalism (1997), The Value of Money (2009), and Re-envisioning Socialism (2011).

Hunger and Poverty In India: A Case Study on Capitalism, Privatization, and Misleading Statistics

By Prabhat Patnaik

THE Global Hunger Index (GHI) for 2022 has just come out, which shows India occupying the 107th position among the 121 countries for which the index is prepared (countries where hunger is not a noteworthy problem are left out of the index). India’s score on the hunger index is 29.1 which is worse than the score of 28.2 it had in 2014. (The lower the figure the less is hunger). One is so bombarded these days by official talk about India being among the fastest-growing economies of the world, India within sight of becoming a $5 trillion economy, and India being an emerging economic power, that news such as the GHI brings one down to earth. Ironically, the only country in South Asia that is below India on the hunger index, and that too only marginally, is war-ravaged Afghanistan (rank 109); the rank of crisis-hit Sri Lanka is 64, of Nepal 81, of Bangladesh 84 and of Pakistan 99.

The GHI news however should come as no surprise. The fact that hunger in the country is acute and growing, has been pointed out by several scholars. They have used data on per capita daily calorie intake, and per capita annual foodgrain availability to make this point. And they have argued that since growing hunger is a symptom of growing poverty, a proposition that the Planning Commission had originally accepted, the period of neo-liberalism which has seen secularly growing hunger culminating in this year’s GHI, despite the much lauded high GDP growth, must also be a period of growing absolute poverty.

The evidence on secularly growing hunger in the neo-liberal period is quite overwhelming. If we take 1993-94 and 2011-12, the first an NSS “large sample” year closest to the beginning of neo-liberalism, and the second the last NSS “large sample” year for which data have been released by the government, we find that the proportion of the population below 2200 calories per person per day in rural India increased from 58 to 68 per cent; the corresponding figures for urban India where the benchmark was 2100 calories per person per day increased from 57 to 65 per cent. The figures for 2017-18, another NSS “large sample” year, were apparently so appalling that the government decided to suppress them altogether, and even to discontinue the NSS in the old form. But leaked data show that per capita real expenditure for rural India as a whole had fallen by 9 per cent between 2011-12 and 2017-18.

There is however a powerful view among many researchers that this apparently growing incidence of hunger should not be taken as evidence of people becoming worse off over time. There are two strands of this argument. One states that because of pervasive mechanisation, the drudgery of manual work has declined over time, so that working people these days do not need as many calories as they used to earlier. They spend less on food than they used to, and diversify their spending towards other ends. The second strand does not mention the decline in the extent of arduous work, but simply states that people are voluntarily diversifying their expenditure away from such elementary goods as foodgrains, towards both more refined and sophisticated food items, and also towards other commodities like children’s education and proper healthcare.

On both these counts according to them, the decline in per capita foodgrain absorption is symptomatic not of a worsening living standard as of an improvement in living standard; hence to draw conclusions about growing poverty from what appears at first sight as growing hunger (but in fact is a voluntary reduction of foodgrain consumption as part of a better life), is entirely illegitimate. The incidence of poverty, it follows, is not growing but declining, as the government and the World Bank have been claiming (though the latter has recently talked of a rise in poverty during the pandemic).

To repeat, there is no dispute about the decline in per capita foodgrain consumption in India, taking both direct and indirect consumption together, the latter through processed foods and animal feeds; nor is there any dispute about the decline in per capita calorie intake. The real difference is whether this signifies growing poverty or a diversification of consumption away from foodgrains that is symptomatic of a fall in poverty. The fact that an increase in poverty would cause greater hunger is not in doubt; the point is whether the reverse is true, whether reduced ingestion of foodgrains can be taken as proof of growing poverty. The Global Hunger Index becomes useful here.

If reduced food intake was indeed a symptom of an improvement in the condition of life, then we should be expecting many more countries whose growth-rates appear impressive to join India at the bottom of the GHI table. But the countries in India’s neighbourhood on the GHI table, where our rank is 107, are Rwanda (rank 102), Nigeria (103), Ethiopia (104), Republic of Congo (105), Sudan (106), Zambia (108), Afghanistan (109) and Timor-Leste (110). All these are countries that are generally regarded as poor countries, so that their being at the bottom of the table is no surprise. By contrast, countries with which we would like our economic performance to be compared, such as China, are at the top of the table. China appears within the top 17 countries which are collectively, rather than individually, ranked. Its GHI score of less than 5 is way better than India’s 29.1.

The fact that not a single one of the so-called high-growth economies figures alongside India underscores the complete vacuity of the arguments that emphasize a change in tastes (greater keenness for children’s education) or a reduction in “drudgery” (through mechanisation) as being responsible for a (voluntary) reduction in foodgrain consumption. The reduction in “drudgery” owing to mechanisation, or the desire for children’s education, are not characteristics specific to the Indian people; they are universal phenomena. Then why should India alone among the high-growth economies figure near the bottom of the GHI table?

It may be argued that while the desire for children’s education and proper healthcare may be common to people everywhere, in India these are expensive services while in China they may be cheaper. Because of this, parents in India enrolling their children in the more expensive schools may have to cut back on their food consumption, while in China schooling being less expensive, there is no need to cut back on food intake for educating children.

But that is precisely our point, and it has nothing to do with any “change of taste”. Everywhere, parents are keen on their children’s education, but if in a particular country putting them to school requires having to forego food, then this foregoing is symptomatic of an increase in poverty. It indicates an increase in the price of one of the goods in the basket consumed by the people, and hence an increase in the cost of living which is not accompanied by a corresponding increase in money incomes, and leads to a cut in foodgrain consumption. This cut in foodgrain consumption, which means an increase in hunger, is therefore a reflection of a rise in cost of living and hence of a reduced real income; and that exactly is what one means by an increase in poverty.

Put differently, any increase in real income must mean some increase in the consumption of every good in a basket of goods on which this income is spent (or some substitute good for one of these goods). An increase in real income, as cross-section data within India and across countries show, invariably means a rise in foodgrains consumption, not direct consumption alone but direct and indirect consumption taken together. But if there is a decline in the total direct and indirect foodgrain intake, as has been the case in India, then that must mean a decline in real incomes of the majority of the people, and hence a rise in poverty. The link between growing hunger and growing poverty therefore remains valid.

The reason why poverty according to official and World Bank estimates appears to have declined in India, on the basis of which it is claimed that the link between poverty and hunger no longer holds, is because they use a “poverty line”, a particular level of per capita money expenditure below which people are considered poor, which is updated by using a cost-of-living index. But the index as constructed in India does not reckon with the rise in cost of living owing to the privatisation of services like education and health. Therefore the true rise in cost of living is not taken into account, and the poverty line that is updated by using it, keeps falling below what it should have been. This underestimates the magnitude of poverty and the elite laps up this estimated, supposedly-declining, poverty ratio. The Global Hunger Index exposes the falsity of such poverty estimates.

Movements Aren't Won or Lost in Elections: Putting India Walton's Campaign for Mayor of Buffalo in Context

(Photo: Friends of India Walton)

By Russell Weaver

India Walton — the progressive, working-class, 39-year-old, Black mother-of-four who stunned Buffalo’s Democratic establishment with her June 2021 upset win in the Mayoral Primary Election — appears to have lost her bid to become the city’s Chief Executive. As of this writing, she’s received 41% of the General Election vote, with unnamed write-in candidates (but, presumably, Primary loser and 16-year-incumbent, Byron Brown) winning the remaining 59% of ballots cast. 

Some observers, including Brown, have been quick to characterize Walton’s loss as a “rebuke” of her leftist brand of politics, stating that her General Election performance should serve as a “warning” to Democrats that leftward movement will cost the party at the ballot box. To paraphrase the celebratory words of New York State’s Republican Committee Chairperson on election night, Brown did not simply beat Walton — he defeated a socialist movement in Buffalo.  

Funny thing about movements, though: they’re not won or lost in an election. Rather, movements progress through phases of an iterative, nonlinear process. Engineer-turned-activist Bill Moyer, who’s frequently credited with steering the Chicago Freedom Movement toward its focus on fair housing in the 1960s, labeled this process the Movement Action Plan (MAP) – a concept he originated, developed, experienced, and refined through a lifetime of organizing. 

In brief, MAP proposes that successful social movements pass through eight phases

  1. During “normal times,” systemic problems like economic inequality or housing insecurity are not prominent on the public agenda. The problems, and the policies that sustain them, are relatively overlooked by the public and mainstream media.

  2. Small networks of organizations and activists with expertise on a systemic problem use official channels (e.g., media, courts, public hearings) and organizing campaigns to focus attention on that problem.

  3. Growing attention to the problem produces “ripening conditions” wherein more organizations and people become sympathetic to the movement’s positions. To Moyer, by this stage some 20-30% of the public are aware of and opposed to the problem.

  4. One or more highly visible “trigger events” animates the problem, clearly illustrating the need for change to a broad audience. During this “take off” phase, people and organizations flock to the movement in greater numbers. For Moyer, the fraction of the public aware of the problem and opposed to the policies or institutions responsible for it reaches 40% in this stage (recall: Walton won over 41% of General Election votes).

  5. Seeing the movement’s gains during “take off” as a threat to the status quo, powerholders mobilize their disproportionate power and resources against it, blocking its more transformative demands from being implemented. At least some members of or sympathizers with the movement see these unachieved demands as failure. This “perception of failure” leads to attrition.

  6. The movement’s experiences with external pushback and internal attrition help sharpen its analysis of power and of the social, economic, and institutional relations that produce and sustain systemic problems. It uses that analysis to build or expand prefigurative institutions that model solutions to those problems (e.g., in India Walton’s case, community land trusts like the one she co-founded to promote affordable housing in Buffalo). Over time, “re-trigger events” bring problems back to life and again draw people and organizations to the movement in numbers. In Moyer’s experience, this is the stage of “majority public opinion,” where most people come to see a problem in terms of the policies and institutions that create and sustain it. Thus, it’s also the stage where most people come to oppose the status quo and the powerholders who uphold it.

  7. No longer just opposed to the status quo, a public majority embraces what were previously “feared” alternatives (i.e., the movement’s more transformative demands), creating the environment for structural change. In Moyer’s terms, this is a stage of “success,” where incremental proposals no longer pacify the public as they once did. Instead, old policies and institutions are changed or dismantled, new ones are built, and people and organizations from the movement begin to replace powerholders who still seek to block transformative social change.

  8. Finally, in what Moyer called “continuing the struggle,” the movement works to extend successes, fend off attempts to undo progress, and transcend the boundaries (spatial, social, or political) of its prior victories.

The champions of the status quo sounding the death knell on Buffalo’s progressive movement either aren’t thinking at the MAP temporal scale; or, more likely, they’re intentionally conflating Walton’s election loss with evidence that progressive politics aren’t capable of taking root in the existing political-economic system, thereby attempting to accelerate attrition from the Buffalo-based movement that Walton’s come to represent.  

Don’t fall for that tactic.  

Walton’s campaign pulled back the curtain on Buffalo’s “resurgence” narrative, highlighting how the city’s pro-growth economic agenda has exacerbated inequality, creating wealth and benefits for affluent developers and property owners while making life more precarious for the disempowered masses. She helped elevate systemic problems like housing insecurity, food deserts, and care deficits to the public agenda. And, perhaps most importantly, she advanced alternative policies and institutions — public—community partnerships to build networked land trusts, participatory budgeting, a public bank, and more — that have the potential to address those problems at a structural level.  

Not long ago, these proposals — which her opponents breathlessly call “radical socialist” — might not have won much favor in a “moderate, business friendly” city like Buffalo. But Walton just captured over 41% of the general electorate, while bringing scores of people (especially young people) into progressive politics. Her campaign was a trigger event that helped the movement reach “take off” (stage four). Her loss will be perceived by some as a failure (stage five). But, in truth, it’s a transition point.  

The speed and ease with which establishment Democrats and Republicans joined forces to drag Brown over the finish line as a write-in candidate laid bare the real fight. It’s not about shifting power from one political party to another — but from the opulent minority to the working-class majority. Notably, Walton seemingly won over Buffalo’s working-class communities. On that backdrop, and with the Mayoral election in the rearview mirror, Buffalo’s progressive movement looks poised to drive headstrong into MAP stage six: institution building.  

By working outside of elected office (for now) to continue building the prefigurative, people-centered organizations that Walton’s campaign promised to everyday Buffalonians, progressives in the city can institutionalize their recent gains. That way, when the next “re-trigger event” calls Buffalo’s collective attention to the city’s worsening inequalityconcentrated povertyhousing insecurity, or related problems — and such an event will inevitably occur, given the choice to keep a developer-friendly strategy in place — the movement will have ready-made infrastructure on which to greet the general public, whose eventual rejection of business-as-usual will come with demands for transformative alternatives (stage seven).  

India Walton might have lost an election, but she also might have helped Buffalo progress more than halfway through the stages of a winning social movement. Now isn’t the time for despair, but for sustained building and organizing: “success” is arguably just a stage (or two) away. 

 

Russell Weaver is a Rust Belt-based geographer and data analyst who studies economic democracy and spatial patterns of inequality. Follow him on Twitter @RustBeltGeo 

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.

Gentrification and the End of Black Communities

[Pictured: Court Street in Cobble Hill (Brooklyn, NY). Photo by Susan De Vries]

By Margaret Kimberley

Republished from Black Agenda Report.

Brooklyn, New York is the epicenter of gentrification, the displacement of Black people from cities in this country. Recently released census data shows that neighborhoods like Bedford-Stuyvesant , which was nearly all Black for decades, no longer has a Black majority. Bedford-Stuyvesant’s white population rose by 30,000 from 2010 to 2020 while its Black population decreased by 22,000.

The devastation has been wrought by finance capital, which has once again upended life for Black people. Money was taken out of the cities in the 1950s and 1960s, creating what was known as “white flight” to the suburbs. Now the same forces have reversed themselves and are putting money back into the cities, and Black people are the losers. Neighborhoods that were once afterthoughts and the butt of jokes are suddenly declared “hot” if real estate speculators target them for change.

The how-to of moving Black people out of a community isn’t difficult at all. The median price for a home anywhere in Brooklyn is now $900,000 . A well-kept brownstone in Crown Heights or Bedford-Stuyvesant can now fetch seven figures. Home purchases which once required living wage employment and thrifty habits now require a small fortune that Black people rarely have.

What is now called gentrification is the latest salvo in a long history of making the Black population disposable and dependent upon the whims of racist reaction and capitalism. Urban renewal, known as Nego removal, destroyed entire communities. Financial institutions used red lining to determine where a mortgage could be obtained. Often these rules were used to keep any Black person out, regardless of financial circumstances.

Those circumstances are usually tenuous. Living wage jobs are no longer plentiful, as the same finance capital interests sent manufacturing jobs to other countries, leaving nothing but low wage jobs or even so-called gig work, which guarantees nothing but the precarity that the system demands.

Gentrification even impacts the criminal justice system. An increasingly white jury pool in Brooklyn means that defendants, mostly people of color, are more likely to be convicted. Civil cases are less likely to be decided in favor of plaintiffs and awards are smaller as the borough’s income and education levels rise.

Generations of culture are being lost, families are dispersed, and even homesellers who can make the proverbial killing are saddened that their good fortune only accelerates the process of displacement. Everyone laments the process but they are silenced because their losses are rarely acknowledged. We are told that people have the right to live where they want. But that right exists only for those with access to lots of money. The average Black working person depends on a salary. Even those with higher incomes don’t have access to cash or to a family legacy of wealth, and they are automatically out of the running.

The problem of course is capitalism itself. Black people shouldn’t be blamed for not pulling themselves by imaginary bootstraps when the paths to success are closed to them by discrimination and when the rules they were told to follow are suddenly changed. Even a college education is no longer a ticket to success. Student loan debt is a burden to people who believed they were helping themselves when they took on what was once a key to success. Black college graduates now start off their lives deeply indebted while also relying on incomes that are less than those of their white counterparts. They are worse off than their parents’ generation and they will be left out of home ownership and other opportunities they thought they would have.

Of course Brooklyn and Harlem are less and less Black. Washington DC, once known as Chocolate City, is now more of a cafe au lait city as its Black population is no longer in the majority. The political system offers no solutions. Real estate interests are big political donors, and they decide who will and who will not be in office. Politicians won’t bite the hands that feed them and people who expected to get what they were promised if they played by the rules are left out of contention.

At the very least we can name and shame the bankers and the developers and the craven politicians. They are causing the deaths of communities and the destruction of a people. There should also be no hesitation in naming racism as the culprit of Black peoples problems. Capitalism and racism make one gigantic, two-headed monster behaving as it always has. No one should shrink from pointing out that fact.

Margaret Kimberley’s Freedom Rider column appears weekly in BAR, and is widely reprinted elsewhere. She is the author of Prejudential: Black America and the Presidents  . Her work can also be found at patreon.com/margaretkimberley. Ms. Kimberley can be reached via e-Mail at Margaret.Kimberley(at)BlackAgendaReport.com. 

One Small Step for Man, One Giant Stumble for Mankind

By Peter Fousek

A few weeks ago, Sir Richard Branson of Necker Island (a home selected, by his own admission, for purposes of tax avoidance) launched himself and into suborbital flight, thereby winning the so-called billionaire space race that he, Jeff Bezos (who has since gone to space himself), and Elon Musk have spent billions on over the past few years. This comes on the heels of headlines (including that of Bezos’s own Washington Post) announcing the staggering loss of life that the Pacific Northwest has experienced as a result of the recent heatwave, the latest in an ever-expanding list of tragic disasters brought on by climate change. Branson’s triumphant flight took place a week after the world watched a truly apocalyptic video of the Gulf of Mexico on fire following yet another pipeline rupture. The billionaire space race has unfolded while developing nations of the global South have already been forced to grapple with devastating droughts, floods, and famines, brought on by the pollution produced as a byproduct of profits accumulated largely in the West.[1] As the planet continues to burn, as countless people continue to suffer and die, the wealthiest members of our species spend fortunes to escape the Earth. I cannot emphasize enough how terrifying of a prospect that is—we, the 99%, those without the means (or interest) to pursue such a planetary exit, should be deeply, deeply concerned. As the effects of climate change continue to unfold, the future looks increasingly grim; nonetheless, as this latest, sickening display of wealth makes clear, those individuals with the economic power to perhaps pull us back from the precipice, are instead happy to watch as we continue to slip closer to unfathomable disaster.

In economics, an externality is an effect or consequence produced by an action, that is felt by people other than the actor responsible for it. The inequitable distribution of the impacts of climate change is a heartbreaking example of a negative externality. For years, the people of developing countries have borne the consequences brought on by practices that they have no hand in. In these countries, many of which continue to suffer from the lasting impacts of colonialist extraction and (economic and militaristic) imperialism, decades of ecological devastation have long since made it abundantly clear the threat posed by the climate crisis is truly existential. And the responsibility for that destruction has not been in question. As disaster after disaster has been endured, there has been an overwhelming, consistently growing collection of evidence supporting the consensus that rising sea levels, ozone depletion, extreme weather, mass extinction, and countless other forms of geological violence, are the direct result of industrial practices ranging from the burning of fossil fuels to the overconsumption of beef cattle.

So why haven’t we stopped? Why do we continue to increase the rate at which we pollute, while the planet itself cries out for help? The answer is largely a function of the aforementioned externality: those who pollute have not yet felt the heat. That isn’t to say people in countries like the United States or Canada (both among the top 20 CO2 producers per capita) aren’t experiencing adverse effects of the climate crisis—as the recent heatwave makes clear, they certainly are. But, while the ordinary United States citizen likely drives a car, eats beef, and engages in any number of other practices that increase the global emission output, they are nowhere close to being major polluters. That status is reserved for those individuals, corporations, states, and institutions who possess economic power over the production of pollution. It is the auto-manufacturer who is responsible for the destructive impacts inherent to the car, not the wage worker who needs it in order to drive to work. It is the natural gas conglomerate and the utility provider who are at fault for the fuel burned to power the generator of a regional electric grid, not the family who has no choice but to use that grid for their electricity. Those who are to blame, who have reaped obscene profits while jeopardizing the future of our world, are continuing to do so, because they can afford not to care.

As mountains of evidence demonstrating the harm caused by industrial pollution have continued to pile up, billions have been spent on lobbying to block policies that would address the causes of climate change. Forbes reports that oil and gas companies alone spend $200 million annually on such efforts.  In comparison to the quarterly earnings they make as they continue to ravage the planet, that cost is negligible. And, while a 2019 study by the Pew Research Center found that 62% of Americans believe the federal government should do more to address the unfolding crisis, it is becoming increasingly evident that our political apparatus has already been bought and paid for, and that any effort on their part do undo the damage done will be far too little, far too late. Rather than act in accordance with popular interest and take measures to address climate change, our “representatives” would prefer to represent those whose substantial contributions will help ensure their reelection. Free market fundamentalists are quick to argue that the profit incentive drives all human innovation; while I disagree with them there, it is clear to see the profit incentive drives our legislation. As a result, those with the power and privilege to do so will continue to exploit the planet and its population, amassing enough wealth to insulate themselves from the consequences of their own actions.

In my previous article, Their Freedom and Ours, I argue that liberty in the United States is increasingly a function of wealth. The implication of freedom’s financial underpinning is that those without money are less valuable than those who possess. Whether in a pandemic or an ecological disaster, this means that our institutional authorities are willing to sacrifice the wellbeing, and even the lives, of the working class, for the sake of the interests of the wealthy. The climate crisis stands only to exacerbate that dynamic of legally and institutionally backed inequality and injustice. We have already witnessed that to be the case, as disaster and devastation have been thrust onto millions of geopolitically marginalized people. Going forward, like the billionaires currently occupied with shooting themselves into space, the wealthy elite will continue to shield themselves from the byproducts of their own greed. Make no mistake: if the more profitable move is to watch the world burn while continuing to add fuel to the fire, they will do so. The economically marginalized and oppressed must recognize their potential ability to ensure that the continued callousness of the wealthy is anything but profitable.

I stated earlier that we should be terrified. More importantly, we should be livid. Those who have reaped the benefits of longstanding destructive practices will gladly watch the rest of us suffer in order to continue down their gluttonous path. What could be more despicable, more utterly inhuman, than that? I also wrote that the average American is not at fault for the crisis. That is not to say that we don’t hold responsibility—we very much do. As consumers, we drive gas powered cars, eat food shipped hundreds of miles from industrial farms, order plastic wrapped plastic products from Amazon, and so much more. As workers, we act as the multitude of miniscule but integral cogs in the economic machine of our late capitalist dystopia, filling the many roles and executing the countless tasks necessary for major corporations to continue functioning. Thus, for the same reasons that we hold a share of the responsibility for the future of our planet, we also hold incredible power.

Consider the lengths that this nation went to, to ensure that our economy never came close to completely shutting down in the face of the deadliest pandemic in a century. Without our continued cooperation as both consumer and producer, the economic system of this country would fail to function—those all-important profits would disappear. Corporate propaganda has tried to convince us that individual consumer choice (e.g. recycling and using paper straws) would be our salvation. That is a lie intended to shift blame away from the corporation to the individual. However, the collective choices of many individuals, acting together for a shared goal, can certainly have a transformative effect. The influence and interference of wealth in U.S. politics and culture has resulted in numerous legal and social barriers to mass strikes; while strikes, legal or otherwise, remain one of the most important political and economic tools held by the working class, we cannot rule out the other elements at our disposal as we strive towards the level of organization and engagement necessary for a general strike. The power of a widespread boycott, for example, is immense. Ours is a consumer economy, in which consumption accounts for nearly 70% of GDP. With sufficient organization, the impact of a well-planned boycott could be monumental, and help pave the way for other mechanisms to enact meaningful political change.

Still, taking action is difficult, even in the best of times; that difficulty is certainly exacerbated by the sheer magnitude of the obstacles that we see stacked against us as we endeavor to confront the climate crisis. Between being indoctrinated into pacifying illusions, and being overwhelmed by the desperate struggles of the day to, the very need to engage in such a pressing struggle can become all but obfuscated. Moreover, it is truly daunting to even consider the economic and political fortitude of those entities that have sent us hurtling down this dark path, against whom we stand opposed. As a young person whose short life has been relentlessly punctuated by reminders of the dire situation we’ve landed in, I’ve often found myself dealing with depression brought on by the existential dread of our historical moment. Because, as we watch countless innocent people suffer and die, as we watch the natural beauty and splendor of our world decimated, as we bear witness to the slaughter of the last tigers, we see a profound tragedy unfolding before our eyes. I believe, however, that our best, and ultimately our only course of action in the face of such cataclysm is to act, and act boldly. Now is not the time to lose hope—the situation is too pressing for that. Instead, it is the time to plan, to organize, and ultimately, to take a stand and advocate for ourselves, each-other, and our planet.

Organizations like the Citizens Climate Lobby (CCL) are already well underway with such efforts. Despite the attempts of corporations and investors to turn the mechanism of government into an oligarchy, the CCL has a track record of success on pushing important, progressive climate legislation through at both state and federal levels. Along with other likeminded organizations, the CCL offers an opportunity for all of us to engage in meaningful activism by compelling our institutional authorities to act in our interest, and the interest of the planet on the whole, rather than for the sole benefit of the most wealthy among us. Moreover, these organizations act as vehicles for collective, large scale strategizing and mobilization—an incredibly important role when we consider the steps that will be necessary to prepare for any economic mass-movement of resistance and dissent that we hope to undertake in the future. That kind of economically mediated activism, a general strike in the long term and widespread boycotts in the nearer future, represents our most substantial mechanism of sociopolitical influence. The power of the investor class to shape the politics and law of this country stems from their instrumental use of economic power; when working in unison towards a collective goal, the working class, as producers and consumers, possess a nearly limitless degree of such power.

We cannot allow ourselves to be the frog who sits patiently in the pot, waiting for the water to boil. We must act before it is too late. While we should have acted sooner, efforts of corporations to conceal the consequences of our consumption coupled with our own desire for comfort and convenience, and in doing so kept us complacent. Now, that complacency must end—those conveniences and comforts come at too high a cost. Now is the time to organize, to join organizations working to address the crisis that we are facing, and to help build a movement capable of enacting the degree of transformative change necessary to combat these challenges. Now is not the time to give up hope, but rather to fight, against all odds, quite literally to save the world. That task, like so many of the most pressing that humanity has faced throughout modern history, is left in the hands of the working class. It is our privilege, our historical mission, to answer the call: “do not go gentle into that good night!”

 

Notes

[1] I do not dismiss China’s recent and substantial greenhouse gas emissions; nonetheless, the duration of Western contributions to emissions, and the continued magnitude of our pollution on a per capita basis, is astronomical, even in comparison to China. Additionally, it’s worth considering that a substantial portion of Chinese emissions are produced by Western-owned corporations.

Empty Rhetoric That Seeks to Misinform and Appease: On Biden's Farcical Anti-Monopoly Executive Order

[Patrick Semansky/AP Photo]

By Shawgi Tell

Let me be clear: capitalism without competition isn’t capitalism. It’s exploitation

—tweet from President Joe Biden, July 9, 2021

Capitalism is exploitation, period. Lol

—a twitter response to Biden’s tweet, July 9, 2021

Not a day goes by in which major owners of capital and their political representatives do not promote illusions and disinformation about the obsolete capitalist economic system. The ruling elite and their entourage rejected economic science and embraced irrationalism, incoherence, and dogmatism more than a century ago. They are unable and unwilling to offer any useful analysis of economic realities. Nothing they put forward helps advance public understanding of the economy. The mainstream news, for example, is saturated with endless mind-numbing nonsensical economic headlines. It is no accident that mainstream economics has long been called the dismal science.

The internal core logic and intrinsic operation of capital ensures greater poverty, inequality, and monopoly over time. This is the inherent nature of capital. It is how capital moves and develops. These catastrophes are not the result of external forces, extenuating circumstances, or “bad people” making “bad decisions.” They are not the outcome of ill-conceived policies made by self-serving, immoral, or uninformed people. These worsening problems did not arise because something is wrong with the intentions of some individuals who make antisocial decisions. Such notions are facile.

While individuals have consciousness, autonomy, self-determination, and agency, many phenomena (e.g., laws of economic development) operate objectively outside the will of individuals; they do not depend on the will of individuals. The laws of motion governing economic phenomena can be known, controlled, and directed, but not extinguished; they have to be consciously mastered, harnessed, and directed in a way that meets the needs of all.

Capital is first and foremost an unequal social relationship, not a person or a thing. This unequal social relationship is relentlessly reproduced in today’s society, preventing the healthy balanced extended reproduction of society. On the one side of this unequal social relationship are the majority who own nothing but their labor power and on the other side are a tiny handful who own the means of production and live off the labor of others.

Major owners of capital are the personification of capital, the embodiment of capital. This critical theoretical insight helps us avoid the rabbit hole of personal intentions and personal will, and allows us instead to objectively locate greed, insecurity, inequality, poverty, unemployment, endless debt, and other tragedies in the intrinsic built-in nature, logic, and movement of capital itself.

One of these is the inexorable tendency of competition to lead to monopoly under capitalism. Competition means winners and losers. By definition, not everyone can win when competing. Competition means rivalry for supremacy. Thousands compete in the Olympics, for example, but only a select few (“winners”) go home with a gold medal.[1] It is no accident that the economy, media, and politics are heavily monopolized by a handful of billionaires while billions of people who actually produce the wealth in society and run society remain marginalized and disempowered.

This brutal reality cannot be reversed or overcome with the utterance of a few platitudes, the passage of some policies, or the creation of some agencies that claim to be able to fix the outdated economic system, especially when all of the above come from billionaires themselves.

On July 9, 2021, President Joe Biden issued an Executive Order on Promoting Competition in the American Economy (https://www.whitehouse.gov/briefing-room/presidential-actions/2021/07/09/executive-order-on-promoting-competition-in-the-american-economy/).

The order is about 7,000 words long and full of anticonscious statements. Disinformation pervades the entire order.

The opening paragraph begins with the following disinformation:

By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to promote the interests of American workers, businesses, and consumers, it is hereby ordered….

Here, “American workers, businesses, and consumers” are casually misequated and no mention is made of citizens or humans. The implication is that consumerism is normal, healthy, and desirable, and that workers and big business somehow have the same aims, world outlook, and interests. This conceals the fact that owners of capital and workers have antagonistic irreconcilable interests and that people exist as humans and citizens, not just utilitarian consumers and shoppers in a taken-for-granted system based on chaos, anarchy, and violence.

Disinformation is further escalated in the next paragraph:

A fair, open, and competitive marketplace has long been a cornerstone of the American economy, while excessive market concentration threatens basic economic liberties, democratic accountability, and the welfare of workers, farmers, small businesses, startups, and consumers.

“Market concentration” has been the norm for generations. Monopolies, cartels, and oligopolies have been around since the late 1800s. Mergers and acquisitions have been taking place non-stop for decades. The so-called “free market” largely disappeared long ago. Objectively, there can be no fairness in a system rooted in wage-slavery and empire-building. Wage-slavery is the precondition for the tendency of the rich to get richer and the poor poorer. It is not a recipe for prosperity and security for all. This is also why inequality, tyranny, violence, and surveillance have been growing over the years. Moreover, what “threatens basic economic liberties, democratic accountability, and the welfare of workers, farmers, small businesses, startups, and consumers” is the ongoing political and economic exclusion of people from control over the economy and their lives by the financial oligarchy. There can be no liberty, accountability, and welfare when most people are deprived of real decision-making power and major owners of capital make all the decisions. Problems would not constantly worsen if people had control over their lives. The “best allocation of resources” cannot be made when the economy is carved up, fractured, and controlled by competing owners of capital.

Although recurring economic crises for well over a century have repeatedly discredited “free market” ideology, the 7,000-word executive order is saturated with the language of “choice,” “competition,” and “consumers.” This is the same worn-out language used by privatizers of all hues at home and abroad.

Further, while the executive order gives many examples of “economic consolidation” in numerous sectors, the government is not interested in creating a self-reliant vibrant diverse economy that meets the needs of all. It is not committed to reversing “the harmful effects of monopoly and monopsony.” Numerous antitrust laws have not stopped either. Big mergers and acquisitions have been going on for years. Rather, the executive order is an attempt to restructure economic and political arrangements among different factions of the wealthy elite; it reflects a new stage or form of inter-capitalist rivalry for even greater domination of the economy by fewer owners of capital. In other words, moving forward, the economy will remain monopolized by a few monopolies. Wealth is only going to become more concentrated in fewer hands in the years ahead. Mountains of data from hundreds of sources document growing wealth and income inequality every year.

The bulk of the executive order is filled with endless directives, strategies, rules, and suggestions for how to curb “unfair practices” and promote “fairness” and “competition.” But these all ring hollow given concrete realities and past experience.

Today, governments at all levels have been taken over by global private monopoly interests and have become instruments of decisions made on a supranational basis. There is a fine-tuned revolving door between officials from government and the private sector; they have become synonymous for all essential purposes. The same people who run major corporations also serve in high-level government positions where they advance the narrow interests of the private sector and then they leave government and return to their high-level corporate positions. There is a reason why the majority of members of Congress are millionaires. The Executive Branch in the United States, especially the President’s Office, is a major tool for the expression of the will of the most powerful monopolies. This is why billions of dollars are spent every few years to select the President of the country.

A modern economy must be controlled and directed by workers themselves. Only such an economy can provide for the needs of all and avoid endless economic distortions. Uneven economic development, “unfair” arrangements, “market concentration,” monopolies, oligopolies, and recurring crises cannot be avoided so long as those who actually produce the social product have no control over the social product. Workers have first claim to the wealth they produce and have the right to decide how, where, and when that wealth is used. Major owners of capital are historically superfluous and a big block to progress. They are not needed for a healthy vibrant self-reliant economy that meets the needs of all.

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.

 
Notes

[1] Under capitalism the ideology of competition also falsely assumes scarcity because if nothing was scare then there would be no need for competition.

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.

Workers and Communities Must Control COVID Relief Funds: A View From Detroit

By Jerry Goldberg

Republished from Liberation News.

The Biden Coronavirus Relief Bill offers significant funding that could alleviate at least in part the poverty faced by millions of people in the United States. An article in Bridge Michigan summed up the potential benefits for poor people in Michigan.

  • An estimated 1.97 million children under 18 in Michigan — and 65.7 million across the United States — could benefit from the expansion of the child tax credit. This constitutes 92% of all children in the state.

  • The bill includes an $880 million increase for food assistance, including a 15% increase in food stamp benefits. This potentially could help alleviate hunger for the more than 430,000 adults in Michigan who reported they can’t afford food to adequately feed their children.

  • Some $25 billion in rental assistance and housing vouchers could provide assistance to the 139,000 families at risk of eviction in the state.

  • There is $25 billion in aid to help child-care providers reopen safely and $15 billion in additional child-care assistance to help families return to work, as well.

All these benefits will be squandered if the workers and oppressed people rely on the capitalist state, a state set up to serve the interests of the corporations and the rich, to deliver these benefits to the people for whom they are intended. This is especially so in oppressed cities like Detroit.

Detroit’s poor completely alienated from capitalist state apparatus

In Detroit, years of grinding poverty and austerity imposed by finance capital have deprived hundreds of thousands of people of the resources to know about and take advantage of benefits, on the rare occasion when they are offered. The following statistics bear out the depth of poverty and lack of accessibility from any basic resources for tens of thousands of Detroiters.

  • In Detroit, 40% of the population has no access to any type of internet, 57% lack a high-speed connection, and 70% of school-aged children have no connection at home.

  • A 2011 report noted that 47% of Detroiters were functionally illiterate. In 2020, the Sixth Circuit Court of Appeals held that Detroit schools deprive their students of basic access to literacy.

  • The median household income for Detroiters in 2018 was $31,283 compared to $61,973 nationally.

The effect of this lack of online access and basic literacy among Detroit’s poor means that even when grandiose programs are announced, those who could benefit the most are not in a position to take advantage of them.

  • While Detroit’s Black community suffered some of the highest COVID rates in the state, only 34.5% of Detroiters have been vaccinated compared to 54.5% of the statewide population.

  • As of January 2020, 11,297 homes lacked water service. Despite a plan being announced to restore service after the pandemic hit in March 2020, in fact there were only 1,250 water restorations as of May 17, 2021.

  • Between 2011 and 2015, one in four properties in Detroit was foreclosed on for unpaid property taxes by the Wayne County treasurer.

  • A survey conducted in 2019, found that of the 25,000 homeowners behind on paying their property taxes, 55% were unaware of the Homeowner Property Tax Assistance Program tax exemption, a program which exempts families earning less than $26,780 per year from paying any property taxes. And in 2017, only 197 families benefitted from the $760 million in federal hardest hit funds given the state to stop foreclosures. Instead, $380 million of the funds were diverted to contractors to tear down homes in a program laced with corruption.

Let the workers and community run things

One of the aspects of the Coronavirus Relief Bill is that it is expected to provide $10 billion for governments across Michigan: $4.4 billion for local governments plus another $5 billion for the state. The City of Detroit will be receiving $826.7 million. These funds must be spent by 2024 or be returned to the federal government.

The people must organize to make sure these funds aren’t squandered as they too often are in the capitalist United States, diverted to crony contractors and nonprofits. Instead, these funds should be used to set up community centers in every neighborhood of cities like Detroit, staffed and run by residents from the communities they serve.

The centers should have computer stations, and aides trained in helping individuals learn about and get access to all benefits they are entitled to. They should sponsor literacy classes. They should employ workers who go out into the community every day, to make sure those who are homebound are reached out to.

The workers and community members staffing these centers should be from the communities they are serving where they are known by their neighbors. They should take stock of basic items like access to electricity, heat and safe non-lead-poisoned water, so families are not afraid to report the lack of basic necessities for fear of having their children taken away.

They should also make sure that undocumented workers, who often are afraid to request aid for fear of deportation, get the services they need regardless of their so-called “residency status.”

Each center should include a health clinic, staffed by doctors, nurses and medical students who live in the community and can provide holistic and environmentally sensitive healthcare that really meets people’s needs.

Cuba shows the way

A model for community-based services can be found in socialist Cuba. An article by Ronn Pineo published in the Journal of Developing Societies described Cuba’s community-based health care system. As early as 1984, Cuba began implementation of its “one doctor plus one nurse team” approach — called Basic Health Teams — with each team unit caring for 80 to 150 families. The healthcare teams live in the communities that they serve so that they can better understand the local health issues.

The doctor/nurse/public health official teams are supported, in turn, by local Group Health Teams, which meet regularly to scout for common issues facing the populations they serve, keeping very careful records of their findings and reporting to the Ministry of Public Health.

Rather than waiting for people to get sick and come into doctors’ offices — the common practice elsewhere in the world — the Cuban doctor/nurse/public healthcare worker groups spend their afternoons walking about their assigned districts, medical bags in hand, dropping in unannounced on the homes of those living in the communities. As a result, they are in a position to notice medical conditions of the people they serve before most afflictions can grow to become too serious. The teams use their house calls as opportunities to remind residents to take their medications — supplied free or at very low price-controlled costs — to exercise more and usually quiz their patients closely about their daily diets.

Demand worker/community control the of relief funds

For the Coronavirus Relief Bill to really make a dent in poverty, hunger and homelessness, it will be up to workers and oppressed people to organize to demand control of the funds to ensure they serve the people for whom they are supposed to be intended. We cannot leave it to the capitalist state, an organ for repression of the people on behalf of the corporate elite, to do the job.

Ultimately, the only way to take the vast wealth of U.S. capitalism, produced by the working class and stolen by the bosses, is to overthrow this rotten system and replace it with a socialist system where the needs of the people in the United States and worldwide could easily be met.