Geopolitics

Racial Justice is Climate Justice: Racial Capitalism and the Fossil Economy

By Julius Alexander McGee and Patrick Trent Greiner

“In a real sense all life is inter-related. All men are caught in an inescapable network of mutuality, tied in a single garment of destiny. Whatever affects one directly, affects all indirectly. I can never be what I ought to be until you are what you ought to be, and you can never be what you ought to be until I am what I ought to be...This is the inter-related structure of reality.”

- Dr. Martin Luther King Jr., Letter From Birmingham Jail

The narrative of oppression moves through dialectical pressures. Capitalism evolved from the feudal order that preceded it, creating new forms of racial oppression that benefited an emerging ruling class[1]. Racial tensions evolve alongside economic oppression that subjugates labor to capital. The preceding racial order molds to emerging mechanisms of expropriation and exploitation by way of force and resistance. Beneath the surface of these tensions lies the interconnected threads of ecological and human expropriation. At the heart of all oppression, lies the manipulation of reproduction. The social processes necessary to reproduce black and brown communities, the ecological processes necessary to reproduce various species, and the dialectical processes that exist between humans and nature that are necessary to reproduce societies; the history of oppression is a tapestry of exploitation and expropriation interwoven so as to reproduce the means of maintaining the ruling class lifestyle. From afar this tapestry looks like a single garment; enslavement, capitalism, colonialism, etc. all coming together to produce the image of modernity, but on close examination one can see the interlocking threads of history weaving together a tapestry of oppression.

Fossil fuel consumption is a ubiquitous form of oppression that intersects with other oppressive structures, empowering those who call upon them to more efficiently extract surplus from various processes of social and ecological reproduction. As Malm writes, “The fossil economy has the character of totality... in which a certain economic process and a certain form of energy are welded together[2]” (12). We must not ignore, however, the ways in which oppressive structures and processes of social reproduction are welded into this totality as well. The expropriation of Black bodies cannot be reduced to mere economic relations, nonetheless racial oppression has always served economic interests. Thus, it is our goal to identify how the ongoing process by which fossil fuels and racial oppression are fused to one another and how that fusion changes the economic character of racial capitalism. This will not be a detailed narrative. Our goal is to develop a heuristic to better understand the connection between racial justice and climate change. To this end, we start with the claim that racial justice is climate justice.

Fossil fuels are the loom that weaves the tapestry of oppression into a functioning whole, systematically influencing the lives of the enslaved, imperialized, colonized, and exploited. Fossil fuels have become the bedrock of economic growth and the basis of most social reproduction. By social reproduction we mean human institutions that maintain the genealogical infrastructure of society. The family, schools, food, language, all of these are essential to reproducing a community's way of life. The dialectical bounding of economic growth and social reproduction is mediated through the consumption of fossil fuels. The family uses energy derived from fossil fuels to survive; schools use electricity to reproduce knowledge; food is produced and transported via networks of fossil fuel consumption; language is increasingly tailored to the needs of economic production.  Economic growth is itself a process of reproduction. Growth within the tapestry of oppression reproduces the conditions of much of contemporary social life, but its primary function is the protection and improvement of ruling class livelihoods. The legitimacy of the capitalist class derives from their ability to sustain economic growth. Economic growth is maintained by fossil fuel consumption. The residual impact of this pairing is the emission of greenhouse gases into the atmosphere, as well as the transformation of any earth systems that don’t readily lend themselves to the perpetuation of such emission.

All oppression is unsustainable. Oppression produces contradictions that undermine the mechanisms of both social and ecological reproduction. In the case of fossil fuels, humans burn the buried remains of plant and animal species that lived millions of years ago to change the landscape of the living. Fossil fuels embody the death that was essential to our life; they have already contributed to the reproduction of lifecycle processes. When humans use fossil fuels as the basis of social reproduction, they are choosing to live based on death instead of life. The reproduction of economic growth, which is essential to the capitalist classes' rule, is undermined by climate change. Carbon dioxide emissions are the largest contributor to climate change, which threatens the reproductive capacity of the tapestry of oppression. Changes in weather patterns contradict the ecological and social processes that the capitalist class expropriates and oppresses to reproduce their way of life. However, because fossil fuels weave together all forms of reproduction, it is not just the reproduction of the capitalist class that is threatened by climate change, but that of all subjects composing the weft and warp bound together by fossil fuels to create the great tapestry of oppression.

Economic growth is mediated by fossil fuels through the exploitation and expropriation of labor. Exploitation is labor that reproduces the conditions of the capitalist class. The surplus derived from labor exploitation reproduces class dynamics within the tapestry of oppression. Expropriation is the process of confiscation that yields the labor and natural resources that reproduce the existence of those living within the tapestry of oppression- particularly those most deeply exploited. Ecological processes, subsistence living, culture, etc., these forms of reproduction are often tailored to the needs of the ruling class. In order to reproduce their means, the oppressed must pay tribute to the capitalist class. However, the tapestry of oppression is not totalizing. The oppressed resist subjugation through the development of new forms of social reproduction.

There have always been alternative modes of social reproduction. However, reproduction outside the tapestry of oppression threatens the existence of the capitalist class. Therefore, the capitalist class views these forms of reproduction as disposable. Those who are expropriated are disposable insofar as the mode of social reproduction they rely upon, and in many instances their very existence is determined by the whims of the capitalist class. When the mechanisms of reproduction fall outside the realm of what can feasibly be expropriated, the capitalist class corralls processes of social reproduction from geographically and culturally distant populations into the service of capital accumulation. This process is known as primitive accumulation.

Primitive accumulation operates on the color-line as piezas de indias. Piezas de indias was a term used during African enslavement to quantify the productive capacity of enslaved peoples[3]. Specifically, piezas de indias measures qualities and characteristics of enslaved Africans that were developed prior to their enslavement. The term denotes a measurement of the value of a theft. “Marx had meant by primitive accumulation that the piezas de indias had been produced, materially and intellectually, by the societies from which they were taken and not by those by which they were exploited[4]” (121). Primitive accumulation, like all forms of oppression, is a process that is productive of contradictions. These contradictions contain legacies of opposition to the tapestry of oppression. It is here that one finds the germ and trajectory of the Black radical tradition. Primitive accumulation occurs on a spectrum. Material and intellectual theft is not homogenous, though it does often take shape around the color-line[5]. Piezas de indias is primitive accumulation specific to Black folks. In this essay, we identify the ongoing transformation of piezas de indias through three major shifts in the distribution and production of fossil fuels: 1) the first industrial revolution, 2) the second industrial revolution, 3) the neoliberal revolution.  

Although it is still common for historians to refer to a single industrial revolution (much like it is common to refer to a single agricultural revolution[6]), many U.S. historians refer to a second industrial revolution as well[7] [8]. The second industrial revolution occurred during the early and mid 20th century with the electrification of rural and urban towns, increases in railroad use, and the emergence of the automobile industry. This is distinct from the first industrial revolution, which started in Britain in the late 18th century, gradually spread across Europe and the U.S., and is defined by the increased use of steam engines and the rise of textile manufacturing in cities. For our purposes, both of these industrial revolutions are understood as forms of primitive accumulation perpetuated by piezas de indias. By this, we mean that primitive accumulation during the first and second industrial revolutions functioned through uneven and combined development, creating unique dynamics of interdependence within the tapestry of oppression.

The First Industrial Revolution: King Cotton and Racial Capitalism

If fossil fuels are “a train put at a point in the past on the current perilous track2”, African enslavement is the track by which the train moves. The bulk of the fossil economy, which emerged in Britain during the 18th and 19th centuries, was initially centered on textile production. The raw materials that made industrial production of textiles economically preeminent were extracted by enslaved bodies on cotton plantations in the United States. As competitive capitalism grew in British towns, largely a result of innovations related to the steam engine, enslavement grew to meet the productive demands of the emerging industries. By the mid-19th century, the United States accounted for three quarters of global cotton production[9]. The majority of the southern states’ cotton was sent to Britain and the northern U.S.to be manufactured into clothing in industrial factories. Eli Whitney’s cotton gin drastically increased the productive capacity of cotton plantations, and thereby accelerated enslavement[10]. From 1790 until the United States’ congress banned the importation of slaves from Africa in 1808, southern plantations imported around 80,000 enslaved Africans. In fact, so powerful was the economic imperative of expropriation, that despite the ban on the import of enslaved peoples to the U.S. slave ships continued to find their way to American shores until 1860- when the slave ship, Clotilda, brought 110 west Africans to the coast of Alabama[11].

Racial capitalism as a concept is synonymous with the Black radical tradition. Enslaved Black folks played a pivotal role in resisting the fossil economy from its inception, as their labor was essential to the rise of industrial capitalism. Slave rebellions, such as the German Coast Rebellion and Nat Turner’s Rebellion, threatened the hegemony of the southern bourgeoisie[12], which in turn threatened the flow of cotton to industrial centers. The Southern bourgeoisie were aware of their influence on industrial capitalism. King Cotton Diplomacy was implemented during the Civil War to coerce European nations into supporting the South’s secession efforts. These efforts failed for many reasons; the British and French had stockpiles of cotton due to previous surpluses, and the British were able to expand cotton extraction via their colonies. However, an often ignored factor that contributed to the failure of King Cotton Diplomacy was the general slave strikes throughout the South, where hundreds of thousands of enslaved Black folk fled plantations to support the war effort. The general slave strikes also provided the Union army with much needed reinforcements, which helped end the war swiftly[13] [14].   

Although the British refrained from taking an explicit “side” during the war, which was in part fueled by their reliance on grain produced in northern states[15], they partook in many efforts to support the southern states’ secession. This included efforts by the British bourgeoisie, who built the majority of ships used by the confederate navy[16]. It is clear that the British had a vested interest in maintaining enslavement in the United States. Although the British had previously outlawed slavery across its empire, the Black radical scholar Eric Williams made it clear that this was not due to a moral shift in British sentiment toward enslavement. The abolition of slavery in the empire served the interest of the emerging industrial bourgeoisie, who used reparations paid to indebted plantation owners to finance industrialization[17] [18].

Following the abolition of slavery, millions of Black folk were denied just compensation for the socially and environmentally destructive contradictions of enslavement, which had manifested in the early fossil economy. Instead of choosing a path toward healing, the United States government ceded power back to plantation owners, who in turn developed systems of debt peonage, sharecropping, and convict leasing, which restructured the tapestry of oppression and further tangled the oppressive threads of the fossil economy and the expropriation of Black bodies. All three of these systems of expropriation (debt peonage, sharecropping, and convict leasing) helped the United States regain its place as a global leader in cotton exports. In fact, the South’s new systems of expropriation increased the efficiency of cotton exportation to industrial centers[19]. Black folk who resisted these changes and attempted to integrate into white society became the target of new Jim Crow laws, which, among many other things, prevented Black and poor White folk from constructing their own communities. In the tapestry of oppression, the threads that bind the oppressed are mediated by the policy and ideology of the ruling class. If fossil fuels are the loom, then these forces of hegemony are the shuttle- weaving the weft of ecological devastation into the warp of social domination- the product is the legitimated mode of social reproduction and control; the tapestry of oppression. Jim Crow laws- one such shuttle- were a form of continuous primitive accumulation that disrupted communal efforts by Black folk to resist expropriation via debt peonage, sharecropping, and convict leasing. Without these efforts, it would have been difficult to corral Black bodies back into servitude in support of the fossil economy. A loom is rendered useless without a shuttle.

After surviving and resisting decades of expropriation in the southern United States, ecological and economic pressures changed the interdependent dynamics within the tapestry of oppression. The Boll Weevil epidemic of the late 19th and early 20th century decimated the South’s cotton economy creating a push factor for Black migration out of the South. Further, the reduced flow of European immigrants to the United States due to World War I, created distinct pull factors for Black migration to industrial cities[20]. From the late 19th to mid-20th century hundreds of thousands of Black folks migrated out of the South to industrial cities across the United States in what is known as the Great Migration[21]. Black migration out of the south coincided with a dramatic change in the structure of the fossil economy. While in 1860 cotton still reigned supreme as the U.S’s leading industry, by 1890 cotton was surpassed by machinery manufacturing as well as steel and iron production[22]. The new jobs in these expanding sectors were filled by Black migrants. To be clear, the cotton economy still played a prominent role in industrial manufacturing throughout the late 19th early 20th centuries, however the influx of Black workers to industrial cities provided the industrial bourgeoisie with leverage over workers by way of racial segregation.

During the early years of the Great Migration, White industrial workers in the United States formed the first national labor unions in response to the economic imbalances produced by the second industrial revolution and World War I. These unions organized mass resistance to the changing dynamics of the fossil economy, however their efforts were undermined by bourgeois racial hegemony. For example, the Great Railroad Strike of 1877, which resisted a central component of the fossil economy, freight train transit fueled by fossil fuels, was a response to wage cuts onset by the end of the Great War[23]. Black railroad workers were actively denied membership to railroad unions, stoking hostility and resentment between Black and White workers. Specifically, White workers saw the lower wages paid to Black workers as a threat to union efforts and demanded that Black workers be replaced with White workers who would be paid higher wages[24], rather than demanding equal pay for White and Black workers. The active discrimination against Black workers by unions resulted in what could be viewed as Black workers crossing the picket line, however the only accurate assessment of these events would lead to the conclusion that it was the color-line that crossed unions and the picket line that crossed Black workers. Similarly, the Homestead Strike of 1892 pitted oppressed workers against the fossil economy’s emerging juggernauts, steel and iron manufacturing. The strike was undermined by the color line and Black workers were, once again, denied union membership. In November 1892, 2,000 White workers on strike violently attacked Black workers who crossed picket lines as well as their families[25]. Ultimately, at the end of the month, the White worker's strike was brought to a close and they were left reapplying for their jobs. Resistance to the fossil economy was undermined by racial tensions. Again, instead of walking down the path of healing by building a cohesive resistance, industrial workers chose to further entrench the expropriation of Black folks and fossil fuels.     

The second industrial revolution: fossil fuels as a basis for social reproduction

If piezas de indias during the first industrial revolution is defined by enslavement, Jim Crow, and industrial labor disenfranchisement, in the second industrial revolution it is defined by political coercion and the uneven distribution of fossil fuel-based amenities.

In the early 20th century, as the U.S. emerged as a global economic hegemon, electrification became a means to expand the fossil economy through coerced consumption. Mass electrification of towns started with the construction of Pearl Street Station in New York City in 1882[26]. The first residential house to receive electricity in the U.S. was occupied by J.P. Morgan (the famous financial capitalist), who was a large financial backer of residential electrification24. Morgan was responsible for the eventual merger of Edison Electric Company and rival company Thomson-Houston, into the economic giant General Electric, which persists today as one of the largest multinational corporations. Electrification did not become ubiquitous until it braided together the ability to increase the efficiency of reproductive labor with the production of culture. Specifically, inventions such as the electric iron, washing machine, and refrigerator all increased leisure time in the home for many workers and families. This newly afforded leisure time was replaced by the culture industry[27], which used electricity to create commodities, such as the radio and eventually the television to mass produce culture.

Mass distribution of electrification was slow due to its infrastructural needs. Little is known about the first working class households to receive electricity. What is known is that early distribution was contingent on whether or not households could afford electricity24. This leads us to suspect that early on, electrification in U.S. cities was implemented along the color-line, however more research is needed to understand the totality of these effects.

Following the Great Depression, rural electrification was implemented by the Roosevelt administration as part of the New Deal in the 1930s. In his research on rural electrification in the U.S. south, geographer Conor Harrison identified the ways in which Jim Crow laws influenced rural electrification and disadvantaged Black households in the rural spaces of the region. It must be remembered that, in the 1930s, more than half of the previously enslaved Black population in the U.S. lived in the rural South[28]. Harrison argues that analyses carried out to determine where the efforts of electrification should be directed relied on a “correction factor”, which was used by federal agents in the rural electrification program to underestimate potential electricity use in Black households. Ultimately, this served to prioritize electrification of White households throughout the region. In this sense, the correction factor, similar to other New Deal policies such as redlining[29], was used to systematically disadvantage Black folk. Harrison concludes, “New energy systems do not emerge into places devoid of social order. Rather..., energy systems deployed in already uneven and racialized landscapes tend to perpetuate marginalization” (pp. 928). Again, fossil fuels were used to further wrap Black folk into the tapestry oppression. In general, one can see how many New Deal policies, such as the National Housing Act of 1934  and the Rural Electrification Act of 1935, encouraged expropriation by more tightly bounding social reproduction (in this case the need for shelter and reproductive labor necessary to maintain that shelter) with economic life. The New Deal relief efforts were implemented on the color-line. This meant that processes of expropriation, which New Deal policies facilitated, were inherently uneven. As such, the continued use of these amenities, at best, functioned to maintain the color-line.

The rise of the automobile industry is a more explicit example of uneven development during the second industrial revolution. The automobile was developed through a series of  inventions using internal combustion engines to propel horseless carts[30]. The mass production and consumption of automobiles is most commonly associated with Henry Ford, the Model T car, and “Fordism.” Fordist production combined the fragmented tasks of “Taylorism” with industrial processes to produce assembly lines of so-called “low skilled workers.” This process increased labor productivity such that working class incomes rose alongside the profits of the capitalist class. The subsequent increase in working class disposable income encouraged mass consumption, which was structured around the automobile[31] [32]. Automobiles expanded the scope of the fossil economy by making oil paramount in industrial development. This expansion was supported by the discovery of large oil reserves in the southern United States in the Spindletop oil fields during the late 19th century[33].

Automobile expansion is inexorably linked to racial segregation in the United States. The phenomenon of White flight, which led to mass suburbanization in the U.S., was encouraged by New Deal housing policies that facilitated the expansion of the automobile market. In order to pass New Deal legislation during the Great Depression, the Roosevelt administration pandered to Southern Democrats by excluding Black folks from many of the amenities granted by the New Deal policies[34] [35]. Prior to the Great Depression, many industrial cities were already heavily segregated due to racial hostilities during the first Great Migration of Black folks out of the South. Federal agencies constructed during the New Deal, such as the Federal Housing Administration and Home Owners Loan Corporation, furthered racial segregation through racial covenants and new underwriting standards that discouraged home loans in racially mixed and predominantly Black neighborhoods. New Deal legislation also disproportionately affected Black farmers through rural restructuring efforts that pushed Black farmers in the South off their land (a legacy that continues today in HUD financing to Black farmers, see NYT 1619 Project[36]). This in combination with new labor opportunities in industrial cities due to World War II, prompted the second Great Migration of Black folks out of the rural south and into urban centers.    

During World War II, the automobile industry grew exponentially due to government purchases related to the war effort30. Following the war, the United States Congress continued to support the automobile industry through legislation, such as the Federal Aid Highway Acts of 1944 and 1956. Further, after the war many Black workers who migrated into industrial cities were put out of work and replaced by White workers who had recently returned from the war. Newly constructed highways and new mortgage schemes, both of which were backed by the U.S. government, combined with the booming automobile industry to encourage White families after war to move out of the city and into suburban sprawls.

The phenomenon, known as White Flight[37], was facilitated by preexisting racial oppression, newly institutionalized racist policies, and government support for the automobile industry. In the end, White flight further tangled the reproductive needs of the capitalist class with the reproductive needs of the oppressed. In post-World War United States, the automobile became the opiate of the White working class; it liberated White folks from the drudgery of city life that had befallen Black folks and simultaneously bound them to the whims of the capitalist class. Through automobile proliferation, the fossil economy effectively weaved together the social reproductive needs of the oppressed with the reproductive needs of the capitalist class such that oppression is perpetuated through myriad dimensions of social reproduction. Where one chooses to live, and how one chooses to live, is tethered to the automobile and the mechanisms that led to its widespread use. Thus, one’s life chances- largely determined by where one is born[38]- are, in effect, patterned by the historical structures and relations that compose the fossil economy. These impacts can even be seen today, as research has shown a clear link between race in the United States and carbon emissions from transportation[39], race and access to solar energy technologies[40], and ties between life expectancy and zip code of birth[41]. Such historically produced associations have created a reality wherein Black liberation is often negotiated under the looming shadow of the fossil economy. The long Civil Rights Movement saw Black communities advocating for better schools, better housing, better access to transit, and better working conditions. Due to the second industrial revolution, most of these amenities became inexorably linked to the fossil economy. While it would be inappropriate to define the Civil Rights Movement as Black folk simply seeking better access to the fossil economy, many of the ‘rights' granted to Black folks during the Civil Rights Movement benefited the fossil economy due to the structural changes that occurred during the second industrial revolution. For example, access to public transit increasingly became a necessity for life within the city, particularly after transit funding was shifted away from cities and towards the suburbs[42]. Actions taken by Civil Rights activists, such as the Montgomery bus boycotts, were negotiated under the framework of the fossil economy. Further, legislation, such as the Civil Rights Act of 1964, included policies that undermined unions’ ability to discriminate against Black folks. However, by this time many industrial unions were seeking to share in the benefits of the fossil economy, rather than deconstructing the mechanisms of capital accumulation[43] [44]. A key point here is that many of the social, political, and economic gains made during the Civil Rights Movement were premised on the unjust allocation of fossil fuel-based amenities.   

In the aftermath of primitive accumulation during the second industrial revolution, a new Black radical tradition emerged that sought to control social reproduction outside the framework of the tapestry of oppression; this movement came to be known as the Black Power Movement. Influenced by the radical teachings of Malcom X, the Black Power Movement in the United States sought liberation through controlling the means of social reproduction. The crowning achievements of the Black Panther Party, which was one of the most successful organizations in the Black Power Movement, were the free breakfast programs, free health clinics, and resistance to police brutality. These efforts actively resisted the expropriation of Black folk in the tapestry of oppression. The Black Panthers sought liberation through re-appropriating various mechanisms of social reproduction. For example, the free breakfast program was supported by local grocery stores, who donated food to the Black Panther Party[45]. The cost of this food captured the embedded cost of the fossil economy (i.e. the fossil fuels used to produce and transport the food to local communities). The cost and relative inaccessibility of this food for Black folk was a product of the uneven distribution of fossil fuel amenities, which at this point had become the basis of social reproduction in the tapestry of oppression. Thus, the re-appropriation of this food into free breakfast for hungry Black children resisted the inequality embedded in the tapestry of oppression. However, as we mentioned earlier, social reproduction outside the tapestry of oppression is a threat to the ruling class. The Black Power movement was actively targeted and opposed by the state, not because they were a violent threat, but because they undermined the internal mechanisms of social reproduction inside the tapestry of oppression; they were actively pulling at the threads, unweaving the tapestry as it wrapped around them. The ruling class was successful at corralling the oppositional social reproduction within the Black Power Movement. To resist this new threat, the ruling class implemented a new form of piezas de indias that combined the tactics used during the first and second industrial revolution -- this new form of primitive accumulation would come to be known as neoliberalism.

The neoliberal revolution: mass incarceration, gentrification, and the rise of color-blind environmentalism

Under neoliberalism, piezas de indias functions through political coercion and economic restructuring. Neoliberalism is a political and economic project that reframes the crisis of stagflation, which plagued monopoly capitalism, as a worker-induced problem[46]. Economically, neoliberalism functions through the state, which facilitates the redistribution of wealth from workers to the ruling class. Politically, neoliberalism works as a narrative to justify legislation that seeks to recapture wealth distributed by the state to workers through programs such as welfare. The mechanisms through which these processes occur are often violent. However, this violence is typically mystified through political coercion[47]. For instance, the carceral state in the U.S., which has emerged as an extension of the neoliberal state, is often viewed apolitically and ahistorically. This allows the carceral state to operate with impunity, as its violent actions are viewed as a necessary and normal response to political dissent. For our purposes, we will explore neoliberalism in the U.S. as it relates to 1) economic restructuring in the wake of deindustrialization and 2) political restructuring in the wake of the declining welfare state.

One of the first neoliberal efforts to restructure a society’s processes of social reproduction occurred in Chile in 1973, when the United States backed a coup d'état against the democratically elected socialist leader– Salvador Allende. This event is significant in that it sparked a restructuring of the fossil economy (first in Chile but eventually across most of the world), as well as the restructuring of the state’s role in managing political dissent. After being elected, Allende nationalized Chile’s copper industry, which at the time was the nation’s largest export, and Chile’s private utilities. The coup that ousted Allende was led by Augusto Pinochet, who installed a brutal military dictatorship to replace Chile’s democratic government. In addition to re-privatizing Chile’s newly nationalized copper market and public utilities, Pinochet also employed a violent military regime that was hostile to political dissent[48]. With respect to the fossil economy, one of the more significant changes that followed the re-privatization of Chile's utilities was the creation and installation of a wholesale energy market system. The wholesale energy market was a trading scheme developed by economists trained at the University of Chicago, which was an early breeding ground of neoliberal economic policies and ideology. The economic restructuring of Chile was an experiment of racial capitalism– akin to the experiments others have examined in Puerto Rico[49] and Flint Michigan[50] more recently.  

In general, wholesale energy trading is best understood as a neoliberal project that was developed to further efforts to extract surplus from the oppressed. Rather than using the traditional monopoly structure of energy production and consumption that was developed during the second industrial revolution– an approach which saw electricity monopolies profit by reducing the cost of production relative to that of consumption– wholesale energy markets break down monopolies into smaller, more competitive producers and distributors. Electricity producers compete with one another by selling energy to distributors at variable rates. Under this scheme, households often pay a fixed rate for electricity, which further normalizes the ubiquity of fossil fuel consumption while also rendering the cost of production invisible to consumers within the tapestry of oppression. The habits of electricity consumers under this new scheme create the conditions for a more rapid, efficacious mode of accumulation by dispossession. The term accumulation by dispossession was developed by Harvey to describe how capitalist policies under neoliberalism result in a centralization of wealth and power by dispossessing public and private entities of their wealth or land43. We employ it here to highlight that, if producers believe consumption will be higher during certain hours of the day they can alter the price of electricity sold to distributors to turn a greater profit. As a result, wealth is increasingly concentrated into the hands of energy producers- being transferred from the energy distributors and, when left unprotected by policy makers, consumers that are woven into these market mechanisms. Put differently, implementation of the wholesale market system allows for the more rapid accumulation of wealth by energy producers via a process of dispossession, or expropriation, of both the natural world and the populations who must rely on their products in order to reproduce their life cycles in the system of neoliberal capital– that most recent pattern of oppressive structures and relations being woven across the tapestry that tangles our fates.

The wholesale energy market exacerbates the tendency towards uneven development within the tapestry of oppression by making energy saving techniques carried out within the home mutually beneficial to electricity distributors and consumers. The ability to reduce electricity consumption– at least during certain hours of the day– becomes a market in and of itself that is supported by electricity distributors[51]. For example, energy distributors such as Pacific Gas and Electric[52], and Portland General Electric[53] have created incentive programs to increase energy savings within households in their distribution network. While on the surface these incentives appear to be potential points of disruption to the fossil economy, in actuality they represent an alliance between energy distributors and wealthy home owners who work in tandem to shift the burden of the accumulation by dispossession carried out by energy producers onto poorer and disproportionately Black households. The accessibility of energy efficient appliances and energy saving techniques operate on the color-line. Black folk in the U.S. are more likely to rent their homes, to be rent stressed[54], and live in fuel poverty[55]. The material conditions of Black life prevent Black folk from accessing the energy saving techniques that are available to consumers, such as energy efficient refrigerators, modern insulation, and energy efficient heating and air conditioning. For example, renters in the U.S., which is disproportionately made of Black folks, are unable to implement many energy saving techniques– such as insulation, and energy efficient heating and air conditioning– because the choice to make such improvements is typically only accessible to homeowners, investment property owners and landlords. Beyond accessibility, the incentive structure of these types of home ‘upgrades,’ are generally expected in the long-term savings over years and decades; a cost-savings timeline which is not applicable to renters whose housing security is far more precarious (even if renters did purchase an energy efficient refrigerator, their rent may increase prohibitively in the coming months, making the investment in an energy efficient appliance more of a nuisance than a benefit.). Further, using these amenities works to alleviate the cost of electricity, which disproportionately benefits White households. Similar to the White Fight of the second industrial revolution, energy saving techniques are an opiate of the White middle class, one that works to alleviate the cost of energy consumption by further tangling the threads within the tapestry of oppression.

An important condition of these relationships, one that is unique to the neoliberal epoch of the fossil economy, is the apparent color-blindness of environmental sustainability. Household energy saving techniques that are supported by energy distributors, and many other markets as well, are touted as environmentally sustainable and are a central part of strategic climate mitigation planning. Nonetheless, these narratives are also part of a hegemonic discourse of color-blindness that masks the reality of racial oppression in the United States. Here, again, instead of walking a path that heals the planet and unravels the threads of Black expropriation, the White middle class is being coerced into an alliance with an industry that perpetuates uneven development throughout the fossil economy.

The development of neoliberalism in the United States coincided with the rise of the carceral state. In his book, Incarcerating the crisis: Freedom struggles and the rise of the neoliberal state, Jordan T. Camp argues that the carceral state emerged by creating racial enemies out of those resisting neoliberal efforts to restructure the economy. Specifically, Camp contends that the “transformation of the [carceral] state was legitimated in response to the organic crisis of U.S. Jim Crow capitalism, a transition that represented a rupture in a ‘total way of life’ characterized by Fordism’s purportedly high wages, mass production, industrial factories, assembly lines, bureaucratized unions, and mass-based popular culture44.” Black folks were disproportionately affected by what Camp calls the ‘crisis of Jim Crow capitalism[56]’. The various rebellions that spawned from this crisis, including the Harlem Revolt of 1964, the Watts Rebellion of 1965, and the Detroit Rebellion of 1967 germinated grassroots resistance to the tapestry of oppression, inducing class-consciousness. This created a crisis of capitalist hegemony, as the ideological threads that protected the policies underlying racial capitalism began to strain. These rebellions– as rebellions so often do– breached the color-line, as White and Black workers united in resistance to the economic restructuring of neoliberalism. Carceral policies emerged in response to these rebellions. It was through these new policies and discourses that the capitalist class attempted to recapture its hegemonic influence. Our metaphorical loom–fossil fuels– was fit with a new shuttle– the ideological tenets of colorblind racism and the policies of mass incarceration– to intricately interweave Black folk, Black life, and U.S. understandings of criminality in a way that maintained the tapestry’s coherence[57]. Taken together these changes culminated in the current wave of mass incarceration, a phenomena which represents the neoliberal state’s political and economic response to the rebellions of Black folk.

The political upshot of all this is that mass incarceration has effectively restructured the color-line in the United States. People of color are confronted by the police, charged with crimes, and incarcerated at disproportionately higher rates than Whites within the U.S. carceral state49. This has occurred against the backdrop of color-blind racism, and it is through the use of color-blind rhetoric that the racialized outcomes of carceral policy have come to be viewed as essential to maintenance of ‘law and order’ in the U.S.– which further disguises the raced palette of mass incarceration. Simply put, the color-line has been established around a coded language of race, which helps to legitimate piezas de indias through incarceration. Further, this process has also helped efforts to reorganize the fossil economy, making its machinery more suitable for weaving together the social and cultural structures of modernity into the totality that is the tapestry of oppression.

In a forthcoming study, we have found that mass incarceration significantly increases carbon emissions from industrial production. While on the surface the relationship between mass incarceration and climate change appears disparate, the interconnected threads of the tapestry of oppression reveal a direct relationship between mass incarceration and the fossil economy. This relationship is an artefact of the prison industrial complex, which represents a collection of political, bureaucratic, and economic interests that benefit from mass imprisonment. Economically, the prison industrial complex profits from industrial development that is interconnected with mass incarceration. Specifically, since 1980 more than 1,000 prisons have been constructed in the U.S[58]. The construction and maintenance of prisons have become a source of revenue for over 3,000 private U.S. corporations. These companies are funded through government contracts, which provide an avenue for industrial expansion. Sociologist Natalie Deckard, argues that mass incarceration works as a “locus for the coercion of demand and consumption”, compelling those who would otherwise marginally participate in markets to become active consumers[59]. Moreover, the prison industrial complex has effectively enacted policies that allow the state and private entities to profit from incarcerated labor. Prison work programs, such as the U.S. government owned corporation Unicor, pay prisoners as little as a dollar an hour for industrial labor, which helps to expand industrial development by reducing the cost of labor. Further, Unicor has a monopoly on government contracts for textile production. Fascinating here, is the reality that black enslavement is yet again being used to support the textile industry, bringing us full circle.

While the fossil economy did not encourage mass incarceration, it has benefited from mass imprisonment through the prison industrial complex. In its current state, mass incarceration, which is nothing more than a modern form of enslavement, is woven into the tapestry of oppression through the use of hegemonic ideology and policy– though, yet again, it is only the use of fossil fuels that has made such complex weaving possible. The economic crisis of the 1970s, which disrupted the structure of the fossil economy that was developed during the second industrial revolution, produced mass unrest. Neoliberal policies are a response to this unrest, which seek to further entrench Black folk into the tapestry of oppression through coerced demand and consumption. The seemingly ever-expanding carceral state creates a cycle of coerced production and consumption. Incarcerated people simultaneously consume and produce industrial goods, which benefits a small number of entities within the prison industrial complex.     

                                     

Conclusion

Black folk have been at the center of the fossil economy since its inception. At each moment of change within the tapestry of oppression, when the threads hang loose and are in need of mending, the opportunity for organized resistance has been squandered by the shuttles of white hegemony; reconstruction following the civil war, mass migration fueled by emerging industries, civil unrest after the economic crisis of the 1970s. All of these moments are defined by primitive accumulation-- by piezas de indias. The emerging renewable energy economy once again presents us with an opportunity to resist the tapestry of oppression. However, the interlocking threads of the tapestry must be opposed if renewables are going to be effective at alleviating oppression. Such resistance requires that we craft new shuttles– by introducing policies that serve as a redress to past forms of expropriation– while simultaneously constructing a new loom– one energized not by the death embodied in the carbonaceous form of fossil fuels, but by the productive, immediate, and life giving (if also fleeting) power of our Sun. Such dramatic changes require purposeful, community-based action, as the inertia of the historical forces described here is formidable. Consider a recent study published in the journal Nature Energy[60], which finds that the expansion of renewable energy consumption disproportionately burdens Black households in the southwestern United States with higher energy bills, demonstrating the long-term effects of Black expropriation within the tapestry of oppression. The expropriation of Black folk is so deeply woven into the tapestry of oppression that pulling on a loose thread without considering the structure of the whole risks disproportionately unraveling the tapestry, which has been carefully woven by way of racialized policy implementation and fossil fuel-based technologies. Combating climate change requires more than simply opposing the fossil economy; we must resist the oppression that fossil fuels have facilitated for over 100 years. The question is: will we seize this moment and unite to carefully unravel this tapestry, weaving it anew into something more just and sustainable, or will we yet again squander an opportunity for healing in favor of further entangling the threads that constitute the tapestry of oppression?   

John Kay’s 1733 Patent for the “New Engine or machine for Opening and Dressing Wool”. This patent introduced the “flying shuttle” to the loom. The introduction of the shuttle allowed looms to be operated by a single laborer, and made loom production…

John Kay’s 1733 Patent for the “New Engine or machine for Opening and Dressing Wool”. This patent introduced the “flying shuttle” to the loom. The introduction of the shuttle allowed looms to be operated by a single laborer, and made loom production fast and efficient enough to facilitate its role in the industrial revolution. https://www.britannica.com/biography/John-Kay

Notes

[1] Kelley, Robin DG. "What did Cedric Robinson mean by racial capitalism." Boston review 12 (2017).

[2] Malm, Andreas. Fossil capital: The rise of steam power and the roots of global warming. Verso Books, 2016.

[3] Rodriguez, Junius P. The historical encyclopedia of world slavery. Vol. 1. ABC-CLIO, 1997.

[4] Robinson, Cedric J. Black Marxism: The making of the Black radical tradition. Univ of North Carolina Press, 2000.

[5] Du Bois, William Edward Burghardt. The souls of black folk. Oxford University Press, 2008.

[6] Foster, John Bellamy. "Marx's theory of metabolic rift: Classical foundations for environmental sociology." American journal of sociology 105, no. 2 (1999): 366-405.

[7] Pirani, Simon. "Burning Up." University of Chicago Press Economics Books (2018).

[8] Mokyr, Joel. "The second industrial revolution, 1870-1914." Storia dell’economia Mondiale 21945 (1998).

[9] Beckert, Sven. "Emancipation and empire: Reconstructing the worldwide web of cotton production in the age of the American Civil War." The American Historical Review 109, no. 5 (2004): 1405-1438..

[10] Green, Constance M. Eli Whitney and the Birth of American Technology. (1965)

[11] Zanolli, Lauren. “'Still fighting': Africatown, site of last US slave shipment, sues over pollution.” The Guardian (2018).

[12] The southern bourgeoisie should be contrasted with their industrial counterparts in the northern U.S., specifically due to their use of enslavement wage labor to derive surplus.

[13] Du Bois, William Edward Burghardt, ed. Black Reconstruction in America: Toward a history of the part which black folk played in the attempt to reconstruct democracy in America, 1860-1880. Routledge, 2017.

[14] Roediger, David R. Seizing freedom: Slave emancipation and liberty for all. Verso Books, 2014.

[15] Ginzberg, Eli. "The Economics of British Neutrality during the American Civil War." Agricultural History 10, no. 4 (1936): 147-156.

[16] Blackett, Richard JM. Divided Hearts: Britain and the American Civil War. LSU Press, 2000.

[17] One should also not forget that it was the rift in soil metabolism between plantation and town that made the sugar trade a volatile market in need of economic restructuring.

[18] Williams, Eric. Capitalism and slavery. UNC Press Books, 2014.

[19] Woodman, Harold D. King cotton and his retainers: Financing and marketing the cotton crop of the south, 1800-1925. Beard Books, 1999.

[20] Higgs, Robert. "The boll weevil, the cotton economy, and black migration 1910-1930." Agricultural History 50, no. 2 (1976): 335-350.

[21] United States Census, “The Great Migration, 1910 to 1970”. 2012. https://www.census.gov/dataviz/visualizations/020/ (accessed 3/20/20)

[22] Economics 323-2: Economic History of the United States Since 1865 http://faculty.wcas.northwestern.edu/~jmokyr/Graphs-and-Tables.PD

[23] Foner, Philip Sheldon. History of the Labor Movement in the United States: The TUEL to the end of the Gompers Era. 9. Vol. 9. International Pub, 1991.

[24] Davis, Colin J. "Bitter conflict: The 1922 railroad shopmen's strike." Labor History 33, no. 4 (1992): 433-455.

[25] Adamczyk, Joseph. “Homestead Strike: United States History.” Encyclopedia  Britannica 2020. https://www.britannica.com/event/Homestead-Strike (accessed 3/22/20)

[26] Jonnes, Jill. Empires of light: Edison, Tesla, Westinghouse, and the race to electrify the world. Random House Trade Paperbacks, 2004.

[27] Adorno, Theodor Wiesengrund, and Theodor W. Adorno. The culture industry: Selected essays on mass culture. Psychology Press, 2001.

[28] Motion, In. "The African-American Migration Experience." URL: http://www. inmotionaame. org/about. cfm (data obrashcheniya: 13.07. 2014) (2009).

[29] Coates, Ta-Nehisi. "The case for reparations." The Atlantic 313, no. 5 (2014): 54-71.

[30] Gartman, David. Auto opium: A social history of American automobile design. Psychology Press, 1994.

[31] Vroey, Michel De. "A regulation approach interpretation of contemporary crisis." Capital & Class 8, no. 2 (1984): 45-66.

[32] Florida, Richard L., and Marshall MA Feldman. "Housing in US fordism." International Journal of Urban and Regional Research 12, no. 2 (1988): 187-210.

[33] Walker, Judith, Ellen Walker Rienstra, Jo Ann Stiles, Ward Morar, and Kara Medhurst. "Giant Under the Hill: A History of the Spindletop Oil Discovery at Beaumont, Texas in 1901." (2002).

[34] Lowndes, Joseph E. From the new deal to the new right: Race and the southern origins of modern conservatism. Yale University Press, 2008.

[35] Cowie, Jefferson. The Great Exception: The New Deal and the Limits of American Politics. Vol. 120. Princeton University Press, 2017.

[36] https://www.nytimes.com/interactive/2019/08/14/magazine/1619-america-slavery.html

[37] Massey, Douglas S., and Nancy A. Denton. American apartheid: Segregation and the making of the underclass. Harvard University Press, 1993.

[38] Wasserman, Miriam. “The Geography of Life's Chances” Federal Reserve Bank Boston. 2001. https://www.bostonfed.org/publications/regional-review/2001/quarter-4/the-geography-of-lifes-chances.aspx (accessed 3/24/20)

[39] McGee, Julius Alexander, Christina Ergas, and Matthew Thomas Clement. "Racing to Reduce Emissions: Assessing the Relation between Race and Carbon Dioxide Emissions from On-Road Travel." Sociology of Development 4, no. 2 (2018): 217-236.

[40] Sunter, D.A., Castellanos, S. & Kammen, D.M. Disparities in rooftop photovoltaics deployment in the United States by race and ethnicity. Nat Sustain 2, 71–76 (2019). https://doi.org/10.1038/s41893-018-0204-z

[41] Macintyre, S., Ellaway, A., & Cummins, S. Place effects on health: How can we conceptualise, operationalise and measure them? Social Science & Medicine, 55(1), 125-139.).

[42] Taylor, Brian D., and Mark Garrett. 1999. “Reconsidering Social Equity in Public Transit.” Berkeley:

University of California Transportation Center

[43] Obach, Brian K. "New labor: slowing the treadmill of production?." Organization & Environment 17, no. 3 (2004): 337-354.

[44] Schnaiberg, Allan, David N. Pellow, and Adam Weinberg. "The treadmill of production and the environmental state." The environmental state under pressure 10 (2002): 15-32.

[45] Austin, Curtis J. Up against the wall: Violence in the making and unmaking of the Black Panther Party. University of Arkansas Press, 2006.

[46] Harvey, David. A brief history of neoliberalism. Oxford University Press, USA, 2007.

[47] Camp, Jordan T. Incarcerating the crisis: Freedom struggles and the rise of the neoliberal state. Vol. 43. Univ of California Press, 2016.

[48] Fourcade-Gourinchas, M. and Babb, S. 2002. The rebirth of the liberal creed: Paths to neoliberalism in four countries. American Journal of Sociology, 103: 33–579.

[49] Klein, Naomi. The battle for paradise: Puerto Rico takes on the disaster capitalists. Haymarket Books, 2018.

[50] Pulido, Laura. "Flint, environmental racism, and racial capitalism." (2016): 1-16.

[51] Wang, Ucilia. “Utility companies start hawking appliances” The Guardian. 2015. https://www.theguardian.com/sustainable-business/2015/may/13/utility-rebate-sdge-xcel-energy-simple-energy (accessed 3/24/20)

[52] See http://www.pgecorp.com/corp_responsibility/reports/2017/cu02_cee.html

[53] See https://www.portlandgeneral.com/residential/energy-savings/special-offers-incentives 

[54] According to a 1981 modification of the Urban Development Act of 1969, rent stressed, or burdened, households are those paying more than 30% of their income on housing. As of 2015, 24% of Black households in the U.S were bearing such a burden, while 20% of White households were. The numbers highlight the disparity more clearly when looking at households that experience a severe rent burden- defined as spending more than 50% of income on housing. In 2015 23% of Black U.S. households were severely burdened, compared to 13% of White U.S. households. https://www.pewtrusts.org/en/research-and-analysis/reports/2018/04/american-families-face-a-growing-rent-burden

[55] “Fuel poverty, is often defined as a situation where low-income households are not able to adequately provide basic energy services in their homes and for their transport at affordable cost” https://www.enerdata.net/publications/executive-briefing/fuel-poverty.html

[56] What Camp cites as ‘Jim Crow Capitalism’ encompassess the economic restructuring of the second industrial revolution.

[57] Alexander, Michelle. The new Jim Crow: Mass incarceration in the age of colorblindness. The New Press, 2020

[58]Lawrence, Sarah, and Jeremy Travis. 2004. “The new landscape of imprisonment: Mapping America's prison expansion”. Urban Institute, Justice Policy Center.

[59] Deckard Delia, Natalie. 2017. “Prison, coerced demand, and the importance of incarcerated bodies in late capitalism.” Social Currents 4(1): 3-12.

[60] White, Lee V., and Nicole D. Sintov. "Health and financial impacts of demand-side response measures differ across sociodemographic groups." Nature Energy 5, no. 1 (2020): 50-60.

The Colonial Gaze in Overdrive: The Latest Rumors and Allegations About the DPRK

Photo: KIM WON-JIN / Contributor / Getty Images

By Derek R. Ford

After weeks of wild speculation about his health, which began as rumors that he was undergoing surgery and escalated into claims that he had in fact died, Chairman Kim Jong Un visually appeared in the media at a ribbon cutting ceremony for a new fertilizer plant. It was yet another case of the Democratic People’s Republic of Korea’s (DPRK, or North Korea) magical ability to raise someone from the dead.

All of the think tank experts and media outlets are now struggling to confirm their initial theory by comparing the movement of Chairman Kim’s legs before his “disappearance” and during the ceremony and by ruminating on a “mysterious mark” on his wrist.

Lest the rumors die, on May 03 the South Korean military reported that four bullets fired from the north hit the wall of a South Korean guard post along the Demilitarized Zone. In response, troops in the south fired 20 warning shots.

A Joint Chiefs of Staff officer said the shots were unintentional, as conditions were foggy and the shots came when Korean People’s Army soldiers typically change shifts and check firearms. US Secretary of Defense Mike Pompeo agreed with the assessment. Given the highly sensitive nature of the situation, the DPRK hasn’t formally responded at this point, and there hasn’t actually been any evidence confirming that the shots came from the north, let alone from the Korean People’s Army.

Despite this, speculation abounds that it was intentional. The most quoted source is Choi Kang, vice president of the Asan Institute for Policy Studies, who told Reuters: “Yesterday, Kim was trying to show he is perfectly healthy, and today, Kim is trying to mute all kinds of speculation that he may not have full control over the military.”

Dr. Choi’s hypothesis might make sense if the DPRK’s military consisted of a few guys with guns. Maybe then it could be an assertion of control. But the country has an incredibly sophisticated military, and firing four rounds of ammunition isn’t much of a statement.

It might make sense if the DPRK had absolutely anything to gain from such an action. They don’t. In fact, such an action could only hurt them insofar as it is treated as a “provocative” action by the US. Whenever the DPRK does basically anything, from testing missiles to launching communications satellites, they’re quickly and routinely—and uniquely—condemned. This is an unjust situation, but one of which the North’s leadership is acutely aware. And now the United Nations Command is investigating to determine whether the shots violated the armistice agreement signed in 1953 to end—or pause—the US-led war against Korea.

It might make sense if the DPRK was looking to antagonize their fellow Koreans in the south. But that’s not the case. In April 2018, Chairman Kim and South Korean President Moon Jae-in signed the historic Panmunjom Declaration, the second point of which was to eliminate military tensions. Since then, the two states have made tremendous strides in doing so by removing landmines and dismantling guard posts. US war exercises have continued, although they have been significantly scaled back.

If you’re not visible, you don’t exist

More problematic with Choi’s assertion, however, one that accords with the rumors of Chairman Kim’s death, is the idea that Chairman Kim and the DPRK have something to “prove” to the West. The logic and force of the West’s colonial gaze is in full force here. Chairman Kim is injured or dead simply because he isn’t visible to the West, and the longer he isn’t visible the more likely it is he is dead. Now he’s “trying to show us” he has control of the military.

The colonialist framework holds that the colonized subject exists only insofar as they’re recognized by the colonizing power. This is the framework under which it’s logical for the colonizer to “discover” a land inhabited by people for centuries. After “discovery,” colonialism demands the constant visibility and transparency of the colonized. Any retreat from visibility into opacity is an affront to the colonial power. This explains the constant outrage from the West that the DPRK is “shrouded in secrecy” or a “hermit kingdom: because the West can’t have unfettered access, because they have to deal with assertions of national sovereignty, because they can’t send in weapons inspectors at the will.

The US is, for obvious reason, a significant factor in North Korea’s actions and policies. But as I heard Ri Ki Ho, representative of the DPRK’s Permanent Mission to the United Nations in NYC, say at the 2019 Global Peace Forum on Korea: “we’re not obsessed with the US.”

Ri was speaking in the context of the nuclear talks between the US and DPRK, saying that whatever the US did or didn’t do, the DPRK would continue along the path it set forward. It makes perfect sense, but only if we divorce ourselves from the colonialist gaze.

My own take is that the rumors and accusations are primarily intended to halt inter-Korean cooperation. Thus, it’s not a coincidence that the rumors of Chairman Kim’s health coincided with the April 15 legislative elections in South Korea. The ruling Democratic Party and its allied Platform Party (which might be absorbed within the DPK) won a resounding victory, capturing 180 out of the 300 available seats in the National Assembly. The far-right, represented by the Unified Future Party, performed worse than they had in 60 years.

The election was partly a referendum on the Moon government’s engagement with the DPRK, which has encountered obstacle after obstacle primarily in the form of US sanctions and the domination of the US over South Korea’s military. The result was a clear affirmation of engagement, peace, and reunification with their fellow Korean people in the north.

The rumors and accusations, then, can be seen as an attempt to disorient and disillusion the hopes of the South Korean people, and to present these aspirations within Korea as an impossibility to the people of the world. They have the added benefit of obstructing any remaining possibility of a rapprochement between the US and DPRK under the Trump administration. Further, depending on the UNC findings, the accusations of gunfire may result in still more sanctions or something even worse.

Regardless of whatever rumors are flying, whatever allegations are in the air, whatever demonization campaign is circulating, the refrain of everyone interested in peace and justice is the same: The Korean people—in the southern and northern parts of the peninsula and in the diaspora—have the rights to peace, liberation, and self-determination, and we will do whatever we can to help them realize those rights.

Derek R. Ford is an educator and organizer, whose latest book is Politics and Pedagogy in the “Post-Truth” Era (Bloomsbury, 2019).

COVID-19 and the Global Pandemic of Anti-Blackness

By Ewuare X. Osayande

Originally published at the author’s website.

The initial word was that Black folks couldn’t catch it. Rumors began spreading that Black people were immune to the virus. But what we have learned and continue to learn with each passing day as the global death toll rises is that Black life is quite susceptible to this virus. But not in a way that makes sense biologically. Black people are not genetically predisposed to this novel coronavirus. What we are is generationally predisposed to an anti-Black discrimination that has weakened our communal immune system leaving each of us vulnerable to this virus in ways people in other communities are not.

Wherever Black people are in this world, we exist mostly on the social margins, isolated and disproportionately impacted by policies and social practices rooted in notions of white supremacy that undermine our collective capacity for health, wealth and safety. Whether on the continent of Africa or throughout the Black Diaspora, our health and safety have been severely hampered by a global social order that has rested upon a racialized ranking that necessitates Black existence be fixed at its bottom to enable and justify whiteness to exist at its apex. Since the 1500s, this arrangement has had deadly implications for Black people. As the bodies pile in over-crowded morgues, hospital rooms and rented trailers in the US and in all the places where Black people live, this virus is exposing the pillars of that structure in ways that are as horrific as when European slave ships set sail from Africa to the Americas.

For the first month or so most of the news coverage in the United States addressed the issue without consideration of race. This was touted as a virus that was wreaking havoc on all segments of the population equally. Then Milwaukee happened. The first casualties in that predominantly white working-class city were all Black men. And when more Black people continued to die, the community there began to ask questions that forced a narrative change. Initial reports claimed that the upsurge in the Black community was due to Black people not heeding the warnings and precautions. Then as activists began to call out the contradictions in the news coverage, more honest reports emerged identifying racial disparities in all areas of life as the true underlying conditions that account for the sky rocketing rates of infection and death in Black communities.

Yet, scant attention had been paid to the impact that generations of discrimination in health care, housing, education, employment — the fundamental pillars of the society — has had on Black people’s overall health. Even less attention has been given to the need for strategies to redress the underlying social and economic constraints that continue to suffocate the life of Black possibilities and opportunity. That Black people in Flint are forced to tackle this pandemic without clean water is a telling indictment. Black communities have already been dealing with pandemic-like concerns for decades in the US. And as much as we would want to believe that money solves all problems, this virus is showing us that wealth or its lack is not much of a deciding factor.

Less than a week after Milwaukee, officials in the wealthiest predominantly Black county in the country, Prince George’s County in Maryland, were rushing to meet the surge in expected hospitalizations as a result of the virus spread. A few days later, the county had amassed the largest concentration of positive cases in the state.

These disparate conditions facing African Americans are further compounded by the everyday racism that puts Black life at risk. Despite the directives from all levels of government for every person to cover their nose and mouth when in public, video footage of Black people being accosted and harassed by police are seen with a regularity that is beyond baffling. Some show Black persons escorted out of grocery stores under claims of looking suspicious. In the videos we see them being followed by police as they exit stores as white customers enter wearing the exact same masks on their faces. The very racism that is responsible for the weakened immune systems of Black people due to stress and anxiety have not shown any signs of reprieve in this time of extreme grieving.

For most Black people, there is no sanctuary. There is no salvage from the turmoil of being turned away at the very places established to provide care. Each week new stories emerge on social media and national news outlets of Black people dying just days after being denied admission at hospitals despite showing symptoms of the virus.

At the time of this writing, the Black mortality rate from this Corona-virus is more than twice that of Latinos and Asians and almost three times the rate of white mortality in the US. According to the APM Research Lab, “in some places, the multiple between Black and White mortality rates greatly exceeds the 2.6 overall figure that we’ve constructed from all available data for the nation. In Kansas and Wisconsin, Black residents are 7 times more likely to die than White residents. In Washington D.C., the rate among Blacks is 6 times higher than Whites, while in Michigan and Missouri, it is 5 times greater. In Arkansas, Illinois, Louisiana, New York State, Oregon and South Carolina, Blacks are 3–4 times more likely to die of the virus than Whites.” This is incomprehensible.

African-Americans represent approximately 13 percent of the US population. In the UK, the Black population is less than 5 percent, yet the Black mortality rate from the coronavirus is running at more than three times the rate of whites there, far outdistancing other minority and immigrant groups in the process. The London-based Institute of Fiscal Studies has released a study that attempts to get at an explanation for these stark disparities. What the researchers are clear on is that Black workers in Britain are over-represented in “key worker roles,” what here in the US would be considered essential and front-line workers. What these studies have yet to get clear on is how anti-black racism, itself, is a key factor.

Britain’s own prime minister, Boris Johnson, whom many consider a Trump knock-off, recently recovered from a COVID-19 infection that had him on life-support. Yet, even his near-death experience has not led to the creation of a plan for the most impacted communities. In the land that not too long ago tried to remove its Black citizens, British leaders are lax in their concern for Black life.

Back here in the states, all concern for Black life has been overlooked as attention has been focused on the spectacle of armed white militias and white evangelicals storming Democratically-run state capitols demanding that their governors reopen the economy. Trump, for his part, calls these noose-wielding, swastika wearing, confederate flag waving Americans “very good people” and encourages governors to “give a little.” Yet Trump has not given much of any support to communities ransacked by this virus. In fact, the governor of Maryland has reportedly put the national guard on watch of essential PPE stockpiles to block Trump’s efforts at intercepting state supply. Re-opening state economies and public facilities en masse right now would amount to a national death sentence for Black America.

That death sentence has already been enacted unofficially in Brazil. In the country with the highest population of Black people in the diaspora, Black people are dying at rates that dwarf all other communities there. First brought to the country by the wealthy returning to major cities where Black people work in menial jobs and as house servants, the virus has now spread into the over-crowded favelas where residents live without running water and proper sanitation.

In many ways, the Brazilian government mirrors that of the US response. Both nations are led by capitalists who came to power with claims to clean up government corruption with campaigns mired in rightwing conservative rhetoric with winks to white nationalists and militia groups. Both nations have class-based economies that keep Black and Brown workers locked in poverty, discrimination, intimidation and violence, where police regularly engage in flagrant acts of brutality, assault and abuse. None of this coincidence. Donald Trump and Jair Bolsonaro flaunt their friendship before the world. Their strategic alliance as political leaders are linked in a whiteness that revels in anti-black violence that is both rhetorical and real. Both men have dismissed the guidance of medical experts on how to reduce the spread in their respective countries. Touting a tough-guy image reminiscent of Mussolini, Bolsonaro has gone as far as making impromptu appearances in densely populated areas as public acts of disregard of the pandemic. But this is not about lack of understanding or ignorance. Both leaders were receiving briefs months before the virus’ arrival on their respective shores. These are malicious acts representative of a political class that seeks to coddle a Christian evangelical base that has long kept social distance from science as they await the return of their white savior. For them, this pandemic is prophecy fulfilled.

Yet, even science has not been the friend of Black people during this pandemic. At the height of the crisis, when governments were desperate to find potential cures, two French “medical experts” went on live TV with one, Dr. Jean-Paul Mira (who heads up an intensive care unit in a Paris hospital), saying, “If I can be provocative, shouldn’t we be doing this study in Africa, where there are no masks, no treatments, no resuscitation?” Although this was met with some criticism from various sectors, the fact that two esteemed doctors would casually call for experimenting on a population of people is more than revolting. It speaks to the kind of anti-blackness that has plagued African populations since France colonized most of the continent. It speaks to a world that is willing to promote experts and leaders willing to push the envelope of acceptable parameters of denigration of Black lives. It shows us how little progress has been made since the 1921 publication of René Maran’s classic anti-colonial novel, Batouala, in which the lead character says, “We are nothing but flesh out of which taxes may be ground. … The white men are killing us slowly.”

But perhaps nothing shows the inhumane levels of anti-blackness in this time of COVID-19 than the experiences of Africans in China.

Despite being the target of Trump’s racist campaigns that seek to deflect blame for his abysmal failures to curtail this virus’ impact onto the Chinese government, China has concocted its own racist narrative which has targeted Africans throughout China. Video footage of Africans kicked out of their places of residence onto the streets without any means of support from local or national agencies sent shock-waves of anger throughout Africa. In Guangzhou there have been cases of Africans having their passports taken by police further jeopardizing their safety. Conditions deteriorated so terribly that rumors began to spread of African officials planning to send planes to return their countrymen and women back home.

The African presence in China is a direct result of the strategic inroads the Chinese government has made with African countries such as Kenya and Nigeria. Since becoming Africa’s largest trade partner more than a decade ago, China has invested billions in infrastructure development with an emphasis on port and railroad construction. Yet, what is clear is that these investments will do little to change the excessive class-stratification and extreme levels of income disparity that exist throughout Africa.

These recent events suggest a pattern of abuse all too familiar to African workers and migrants in search of a financial foothold in a global economy predicated on an exploitation that disregards their humanity to the point of death. The world may have shuttered when Trump compared countries in African to excrement, but shitty is a most accurate term to describe the response around the world to the Black COVID-19 mortality rate.

At the time of this writing, more Black people have now died in the US from this coronavirus than were lynched during segregation. Never in a white supremacist’s wildest dreams could they have imagined a plague that would wipe out thousands of Black lives in a matter of a couple of months. When the germs clear and the air is breathable again without fear, this moment in human history will be marked by the toll it has taken on Black life. It will reveal a turbulent world economic order crumbling on the backs of an essential Black labor pool kept at subsistence levels of health with no sufficient safeguards in place. Will all that may be uncertain and unknowable about our world right now, one thing is for sure — the pandemic of anti-blackness, its symptoms and effects, will remain long after the coronavirus COVID-19 has come and gone.

Ewuare X. Osayande is a writer and activist. The author of several books, his latest is a collection of poetry entitled Black Phoenix Uprising. Learn more about his work at Osayande.org.

Revolution in the Twenty-First Century: A Reconsideration of Marxism

By Chris Wright

In the age of COVID-19, it’s even more obvious than it’s been for at least ten or twenty years that capitalism is entering a long, drawn-out period of unprecedented global crisis. The Great Depression and World War II will likely, in retrospect, seem rather minor—and temporally condensed—compared to the many decades of ecological, economic, social, and political crises humanity is embarking on now. In fact, it’s probable that we’re in the early stages of the protracted collapse of a civilization, which is to say of a particular set of economic relations underpinning certain social, political, and cultural relations. One can predict that the mass popular resistance, worldwide, engendered by cascading crises will gradually transform a decrepit ancien régime, although in what direction it is too early to tell. But left-wing resistance is already spreading and even gaining the glimmers of momentum in certain regions of the world, including—despite the ending of Bernie Sanders’ presidential campaign—the reactionary United States. Over decades, the international left will grow in strength, even as the right, in all likelihood, does as well.

Activism of various practical and ideological orientations is increasingly in a state of ferment—and yet, compared to the scale it will surely attain in a couple of decades, it is still in its infancy. In the U.S., for example, “democratic socialism” has many adherents, notably in the DSA and in the circles around Jacobin magazine. There are also organizations, and networks of organizations, that consciously repudiate the “reformism” of social democracy, such as the Marxist Center, which disavows the strategy of electing progressive Democratic politicians as abject “class collaboration.” Actually, many democratic socialists would agree that it’s necessary, sooner or later, to construct a workers’ party, that the Democratic Party is ineluctably and permanently fused with the capitalist class. But the Marxist Center rejects the very idea of prioritizing electoral work, emphasizing instead “base-building” and other modes of non-electoral activism.

Meanwhile, there are activists in the solidarity economy, who are convinced it’s necessary to plant the institutional seeds of the new world in the fertile soil of the old, as the old slowly decays and collapses. These activists take their inspiration from the recognition, as Rudolf Rocker put it in his classic Anarcho-Syndicalism, that “every new social structure makes organs for itself in the body of the old organism. Without this preliminary any social evolution is unthinkable. Even revolutions can only develop and mature the germs which already exist and have made their way into the consciousness of men; they cannot themselves create these germs or generate new worlds out of nothing.” The Libertarian Socialist Caucus of the DSA is one group that identifies with this type of thinking, but there are many others, including the Democracy Collaborative, the Democracy at Work Institute (also this one), Shareable, and more broadly the New Economy Coalition. Cooperation Jackson has had some success building a solidarity economy in Jackson, Mississippi.

The numbers and varieties of activists struggling to build a new society are uncountable, from Leninists to anarchists to left-liberals and organizers not committed to ideological labels. Amidst all this ferment, however, one thing seems lacking: a compelling theoretical framework to explain how corporate capitalism can possibly give way to an economically democratic, ecologically sustainable society. How, precisely, is that supposed to happen? Which strategies are better and which worse for achieving this end—an end that may well, indeed, seem utopian, given the miserable state of the world? What role, for instance, does the venerable tradition of Marxism play in understanding how we might realize our goals? Marx, after all, had a conception of revolution, which he bequeathed to subsequent generations. Should it be embraced, rejected, or modified?

Where, in short, can we look for some strategic and theoretical guidance?

In this article I’ll address these questions, drawing on some of the arguments in my book Worker Cooperatives and Revolution: History and Possibilities in the United States (specifically chapters 4 and 6).[1] As I’ve argued elsewhere, historical materialism is an essential tool to understand society and how a transition to some sort of post-capitalism may occur. Social relations are grounded in production relations, and so to make a revolution it is production relations that have to be transformed. But the way to do so isn’t the way proposed by Marx in the Communist Manifesto, or by Engels and Lenin and innumerable other Marxists later: that, to quote Engels’ Anti-Dühring, “The proletariat seizes state power, and then transforms the means of production into state property.” Or, as the Manifesto states, “The proletariat will use its political supremacy to wrest, by degree, all capital from the bourgeoisie, to centralize all instruments of production in the hands of the State, i.e., of the proletariat organized as the ruling class.”

Instead, the revolution has to be a gradual and partially “unconscious” process, as social contradictions are tortuously resolved “dialectically,” not through a unitary political will that seizes the state (every state!) and then consciously, semi-omnisciently reconstructs the economy from the top down, magically transforming authoritarian relations into democratic ones through the exercise of state bureaucracy. In retrospect, this idea that a “dictatorship of the proletariat” will plan and direct the social revolution, and that the latter will, in effect, happen after the political revolution, seems incredibly idealistic, unrealistic, and thus un-Marxist.

I can’t rehearse here all the arguments in my book, but I’ve sketched some of them in this article. In the following I’ll briefly restate a few of the main points, after which I’ll argue that on the basis of my revision of Marxism we can see there is value in all the varieties of activism leftists are currently pursuing. No school of thought has a monopoly on the truth, and all have limitations. Leftists must tolerate disagreements and work together—must even work with left-liberals—because a worldwide transition between modes of production takes an inordinately long time and takes place on many different levels.

I’ll also offer some criticisms of each of the three broad “schools of thought” I mentioned above, namely the Jacobin social democratic one, the more self-consciously far-left one that rejects every hint of “reformism,” and the anarchistic one that places its faith in things like cooperatives, community land trusts, mutual aid, “libertarian municipalism,” all sorts of decentralized participatory democracy. At the end I’ll briefly consider the overwhelming challenge of ecological collapse, which is so urgent it would seem to render absurd, or utterly defeatist, my insistence that “the revolution” will take at least a hundred years to wend its way across the globe and unseat all the old social relations.

Correcting Marx

Karl Marx was a genius, but even geniuses are products of their environment and are fallible. We can hardly expect Marx to have gotten absolutely everything right. He couldn’t foresee the welfare state or Keynesian stimulation of demand, which is to say he got the timeline for revolution wrong. One might even say he mistook the birth pangs of industrial capitalism for its death throes: a global transition to socialism never could have happened in the nineteenth century, nor even in the twentieth, which was the era of “monopoly capitalism,” state capitalism, entrenched imperialism, the mature capitalist nation-state. It wasn’t even until the last thirty years that capitalist relations of production fully conquered vast swathes of the world, including the so-called Communist bloc and much of the Global South. And Marx argued, at least in the Manifesto, that capitalist globalization was a prerequisite to socialism (or communism).

All of which is to say that only now are we finally entering the era when socialist revolution is possible. The earlier victories, in 1917, 1949, 1959, and so on, did not achieve socialism—workers’ democratic control of the economy—and, in the long run, could not have. They occurred in a predominantly capitalist world—capitalism was in the ascendancy—and were constrained by the limits of that world, the restricted range of possibilities. Which is doubtless why all those popular victories ended up in one or another form of oppressive statism (or else were soon crushed by imperialist powers).

If Marx was wrong about the timeline, he was also wrong about his abstract conceptualization of how the socialist revolution would transpire. As he put it in the Preface to A Contribution to the Critique of Political Economy, “At a certain stage of development, the material productive forces of society come into conflict with the existing relations of production… From forms of development of the productive forces these relations turn into their fetters. Then begins an era of social revolution.” The notion of fettering, despite its criticism by exponents of Analytical Marxism, is useful, but not in the form it’s presented here. For to say that relations of production fetter productive forces (or, more precisely, fetter their socially rational use and development) is not to say very much. How much fettering is required for a revolution to happen? Surely capitalism has placed substantial fetters on the productive forces for a long time—and yet here we all are, still stuck in this old, fettered world.

To salvage Marx’s intuition, and in fact to make it quite useful, it’s necessary to tweak his formulation. Rather than some sort of “absolute” fettering of productive forces by capitalist relations, there is a relative fettering—relative to an emergent mode of production, a more democratic and socialized mode, that is producing and distributing resources more equitably and rationally than the capitalist.

A parallel (albeit an imperfect one) is the transition from feudalism to capitalism. Feudal relations certainly obstructed economic growth, but it wasn’t until a “competing” economy—of commercial, financial, agrarian, and finally industrial capitalism—had made great progress in Western Europe that the classical epoch of revolution between the seventeenth and nineteenth centuries burst onto the scene. Relative to capitalism, feudalism was hopelessly stagnant, and therefore, once capitalism had reached a certain level of development, doomed.

Crucially, the bourgeoisie’s conquest of political power wasn’t possible until capitalist economic relations had already, over centuries, spread across much of Europe. There had to be a material foundation for the capitalist class’s ultimate political victories: without economic power—the accumulation of material resources through institutions they controlled—capitalists could never have achieved political power. That is to say, much of the enormously protracted social revolution occurred before the final “seizure of the state.”

If historical materialism is right, as it surely is, the same paradigm must apply to the transition from capitalism to socialism. The working class can never complete its conquest of the state until it commands considerable economic power—not only the power to go on strike and shut down the economy but actual command over resources, resources sufficient to compete with the ruling class. The power to strike, while an important tool, is not enough. Nor are mere numbers, however many millions, enough, as history has shown. The working class needs its own institutional bases from which to wage a very prolonged struggle, and these institutions have to be directly involved in the production and accumulation of resources. Only after some such “alternative economy,” or socialized economy, has emerged throughout much of the world alongside the rotting capitalist economy will the popular classes be in a position to finally complete their takeover of states. For they will have the resources to politically defeat the—by then—weak, attenuated remnants of the capitalist class.

Marx, in short, was wrong to think there would be a radical disanalogy between the transition to capitalism and the transition to socialism. Doubtless the latter process (if it happens) will take far less time than the earlier did, and will be significantly different in many other respects. But social revolutions on the scale we’re discussing—between vastly different modes of production—are always very gradual, never a product of a single great moment (or several moments) of historical “rupture” but rather of many decades of continual ruptures.[2] Why? Simply because ruling classes are incredibly tenacious, they have incredible powers of repression, and it requires colossal material resources to defeat them—especially in the age of globalized capitalism.

Building a new mode of production

What we must do, then, is to laboriously construct new relations of production as the old capitalist relations fall victim to their contradictions. But how is this to be done? At this early date, it is, admittedly, hard to imagine how it can be accomplished. Famously, it’s easier to imagine the end of the world than the end of capitalism.

But two things are clear. First, a significant amount of grassroots initiative is necessary. The long transition will not take place only on one plane, the plane of the state; there will be a tumult of creative energy on sub-state levels, as there was during Europe’s transition into capitalism. (Of course, in the latter case it was typically to establish predatory and exploitative relations, not democratic or communal ones, but the point holds.) The many forms of such energy can hardly be anticipated, but they will certainly involve practices that have come to be called the “solidarity economy,” including the formation of cooperatives of all types, public banks, municipal enterprises, participatory budgeting, mutual aid networks, and so on. In a capitalist context it is inconceivable that states will respond to crisis by dramatically improving the circumstances of entire populations; as a result, large numbers of people will be compelled to build new institutions to survive and to share and accumulate resources. Again, this process, which will occur all over the world and to some degree will be organized and coordinated internationally, will play out over generations, not just two or three decades.

In the long run, moreover, this solidarity economy will not prove to be some sort of innocuous, apolitical, compatible-with-capitalism development; it will foster anti-capitalist ways of thinking and acting, anti-capitalist institutions, and anti-capitalist resistance. It will facilitate the accumulation of resources among organizations committed to cooperative, democratic, socialized production and distribution, a rebuilding of “the commons,” a democratization of the state. It will amount to an entire sphere of what has been called “dual power” opposed to a still-capitalist state, a working-class base of power to complement the power of workers and unions to strike.

The second point is that, contrary to anarchism, it will be necessary to use the state to help construct a new mode of production. Governments are instruments of massive social power and they cannot simply be ignored or overthrown in a general strike. However unpleasant or morally odious it may be to participate in hierarchical structures of political power, it has to be a part of any strategy to combat the ruling class.

Activists and organizations will pressure the state at all levels, from municipal to national, to increase funding for the solidarity economy. In fact, they already are, and have had success in many countries and municipalities, including in the U.S. The election of more socialists to office will encourage these trends and ensure greater successes. Pressure will also build to fund larger worker cooperatives, to convert corporations to worker-owned businesses, and to nationalize sectors of the economy. And sooner or later, many states will start to give in.

Why? One possible state response to crisis, after all, is fascism. And fascism of some form or other is indeed being pursued by many countries right now, from Brazil to Hungary to India to the U.S. But there’s a problem with fascism: by its murderous and ultra-nationalistic nature, it can be neither permanent nor continuously enforced worldwide. Even just in the United States, the governmental structure is too vast and federated, there are too many thousands of relatively independent political jurisdictions, for a fascist regime to be consolidated in every region of the country. Fascism is only a temporary and partial solution for the ruling class. It doesn’t last.

The other solution, which doubtless will always be accompanied by repression, is to grant concessions to the masses. Here, it’s necessary to observe that the state isn’t monolithically an instrument of capital. While capital dominates it, it is a terrain of struggle, “contestations,” “negotiations,” of different groups—classes, class subgroups, interest groups, even individual entities—advocating for their interests. Marxists from Engels, Kautsky, and Lenin to Miliband and Poulantzas to more recent writers have felled forests writing about the nature of the capitalist state, but for the purposes of revolutionary strategy all you need is some critical common sense (as Noam Chomsky, dismissive of self-indulgent “theorizing,” likes to point out). It is possible for popular movements to exert such pressure on the state that they slowly change its character, thereby helping to change the character of capitalist society.

In particular, popular organizations and activists can take advantage of splits within the ruling class to push agendas that benefit the populace. The political scientist Thomas Ferguson, among others, has shown how the New Deal, including the epoch-making Wagner Act and Social Security Act, was made possible by just such divisions in the ranks of business. On a grander scale, Western Europe’s long transition from feudalism to capitalism was accompanied by divisions within the ruling class, between more forward-thinking and more hidebound elements. (As is well known, a number of landed aristocrats and clergymen even supported the French Revolution, at least in its early phases.) Marx was therefore wrong to imply that it’s the working class vs. the capitalist class, monolithically. This totally Manichean thinking suggested that the only way to make a revolution is for the proletariat to overthrow the ruling class in one blow, so to speak, to smash a united reactionary opposition that, moreover, is in complete control of the state (so the state has to be seized all at once).

On the contrary, we can expect the past to repeat itself: as crises intensify and popular resistance escalates, liberal factions of the ruling class will split off from the more reactionary elements in order to grant concessions. In our epoch of growing social fragmentation, environmental crisis, and an increasingly dysfunctional nation-state, many of these concessions will have the character not of resurrecting the centralized welfare state but of encouraging phenomena that seem rather “interstitial” and less challenging to capitalist power than full-fledged social democracy is. But, however innocent it might seem to support new “decentralized” solutions to problems of unemployment, housing, consumption, and general economic dysfunction, in the long run, as I’ve said, these sorts of reforms will facilitate the rise of a more democratic and socialized political economy within the shell of the decadent capitalist one.

At the same time, to tackle the immense crises of ecological destruction and economic dysfunction, more dramatic and visible state interventions will be necessary. They may involve nationalizations of the fossil fuel industry, enforced changes to the polluting practices of many industries, partial reintroductions of social-democratic policies, pro-worker reforms of the sort that Bernie Sanders’ campaign categorized under “workplace democracy,” etc. Pure, unending repression will simply not be sustainable. These more “centralized,” “statist” reforms, just like the promotion of the solidarity economy, will in the long run only add to the momentum for continued change, because the political, economic, and ecological context will remain that of severe worldwide crisis.

Much of the ruling class will of course oppose and undermine progressive policies—especially of the more statist variety—every step of the way, thus deepening the crisis and doing its own part to accelerate the momentum for change. But by the time it becomes clear to even the liberal sectors of the business class that its reforms are undermining the long-term viability and hegemony of capitalism, it will be too late. They won’t be able to turn back the clock: there will be too many worker-owned businesses, too many public banks, too many state-subsidized networks of mutual aid, altogether too many reforms to the old type of neoliberal capitalism (reforms that will have been granted, as always, for the sake of maintaining social order). The slow-moving revolution will feed on itself and will prove unstoppable, however much the more reactionary states try to clamp down, murder dissidents, prohibit protests, and bust unions. Besides, as Marx predicted, the revolutionary project will be facilitated by the thinning of the ranks of the capitalist elite due to repeated economic collapses and the consequent destruction of wealth.

Just as the European absolutist state of the sixteenth to nineteenth centuries was compelled to empower—for the sake of accumulating wealth—the capitalist classes that created the conditions of its demise, so the late-capitalist state will be compelled, for the purposes of internal order, to acquiesce in the construction of non-capitalist institutions that correct some of the “market failures” of the capitalist mode of production. The capitalist state will, of necessity, be a participant in its own demise. Its highly reluctant sponsorship of new practices of production, distribution, and social life as a whole—many of them “interstitial” at first—will be undertaken on the belief that it’s the lesser of two evils, the greater evil being the complete dissolution of capitalist power resulting from the dissolution of society.

It is impossible to predict this long process in detail, or to say how and when the working class’s gradual takeover of the state (through socialist representatives and the construction of new institutions on local and eventually national levels) will be consummated. Nor can we predict what the nation-state itself will look like then, what political forms it will have, how many of its powers will have devolved to municipal and regional levels and how many will have been lost to supra-national bodies of world governance. Needless to say, it is also hopeless to speculate on the future of the market, or whether various kinds of economic planning will, after generations, mostly take the place of the market.

As for “the dictatorship of the proletariat,” this entity, like the previous “dictatorship of the bourgeoisie,” won’t exist until the end of the long process of transformation. Marxists, victims of impatience as well as the statist precedents of twentieth-century “Communist” countries, have traditionally gotten the order wrong, forgetting the lesson of Marxism itself that the state is a function of existing social relations and can’t simply be taken over by workers in the context of a still-wholly-capitalist economy. Nor is it at all “dialectical” to think that a group of workers’ representatives can will a new economy into existence, overcoming the authoritarian, bureaucratic, inefficient, exploitative institutional legacies of capitalism by a few acts of statist will. Historical materialism makes clear the state isn’t so radically socially creative![3]

Instead, the contrast that will appear between the stagnant, “fettering” old forms of capitalism and the more rational and democratic forms of the emergent economy is what will guarantee, in the end, the victory of the latter.

An ecumenical activism

In a necessarily speculative and highly abstract way I’ve tried to sketch the logic of how a new economy might emerge from the wreckage of capitalism, and how activists with an eye toward the distant future might orient their thinking. It should be evident from what I’ve said that there isn’t only one way to make a revolution; rather, in a time of world-historic crisis, simply fighting to humanize society will generate anti-capitalist momentum. And there are many ways to make society more humane.

Consider the social democratic path, the path of electing socialists and pressuring government to expand “welfare state” measures. Far-leftists often deride this approach as merely reformist; in the U.S., it’s also common to dismiss the idea of electing progressive Democrats such as Alexandria Ocasio-Cortez because supposedly the Democratic Party is hopelessly capitalist and corrupt. It can’t be moved left, and it will certainly never be a socialist party.

According to Regeneration Magazine, for instance, a voice of the Marxist Center network, “Reformism accepts as a given the necessity of class collaboration, and attempts to spin class compromise as a necessary good. One of the more popular strategic proposals of the reformist camp is the promotion of candidates for elected office running in a capitalist party; a clear instance of encouraging class collaboration.”

There are a number of possible responses to such objections. One might observe that if the left insists on absolute purity and refuses to work with anyone who can be seen as somehow “compromised,” it’s doomed to irrelevance—or, worse, it ends up fracturing the forces of opposition and thus benefits the reactionaries. It is a commonplace of historiography on fascism that the refusal of Communist parties in the early 1930s to cooperate with socialists and social democrats only empowered the Nazis and other such elements—which is why the Stalinist line changed in 1934, when the period of the Popular Front began. Then, in the U.S., began Communist efforts to build the Democrat-supported CIO (among other instances of “collaboration” with Democrats), which was highly beneficial to the working class. Leftists, more than anyone else, should be willing and able to learn from history.

Or one might state the truism that social democracy helps people, and so if you care about helping people, you shouldn’t be opposed to social democracy. It may be true that the Democratic Party is irredeemably corrupt and capitalist, but the more left-wing policymakers we have, the better. Democrats have moved to the left in the past, e.g. during the New Deal and the Great Society, and they may be able to move to the left in the future. One of the goals of socialists should be to fracture the ruling class, to provoke splits that provide opportunities for socialist organizing and policymaking.

At the same time, the strategy of electing left-wing Democrats or “reformists” should be complemented by an effort to build a working-class party, not only for the sake of having such a party but also to put pressure on the mainstream “left.” Anyway, the broader point is just that the state is an essential terrain of struggle, and all ways of getting leftists elected have to be pursued.

Personally, I’m skeptical that full-fledged social democracy, including an expansion of it compared to its traditional form, is possible any longer, least of all on an international or global scale. Thus, I don’t have much hope for a realization of the Jacobin vision, that societies can pass straight into socialism by resurrecting and continuously broadening and deepening social democracy. Surely Marxism teaches us that we can’t resuscitate previous social formations after they have passed from the scene, particularly not institutional forms that have succumbed (or are in the process of succumbing) to the atomizing, disintegrating logic of capital. The expansive welfare state was appropriate to an age of industrial unionism and limited mobility of capital. Given the monumental crises that will afflict civilization in the near future, the social stability and coherence required to sustain genuine social democracy will not exist.

But that doesn’t mean limited social-democratic victories aren’t still possible. They certainly are. And in the long run, they may facilitate the emergence of new democratic, cooperative, ecologically viable modes of production, insofar as they empower the left. Even something like a Green New Deal, or at least a partial realization of it, isn’t out of the question.

On the other hand, while mass politics is necessary, that doesn’t mean we should completely reject non-electoral “movementism.” As I’ve argued, the project of building a new society doesn’t happen only on the level of the state; it also involves other types of popular organizing and mobilizing, including in the solidarity economy. The latter will likely, indeed, be a necessity for people’s survival in the coming era of state incapacity to deal with catastrophe.

Not all types of anarchist activism are fruitful or even truly leftist, but the anarchist intuition to organize at the grassroots and create horizontal networks of popular power is sound. Even in the ultra-left contempt for reformism there is the sound intuition that reforms are not enough, and we must always press forward towards greater radicalism and revolution.

An ecological apocalypse?

An obvious objection to the conception and timeframe of revolution I’ve proposed is that it disregards the distinct possibility that civilization will have disappeared a hundred years from now if we don’t take decisive action immediately. For one thing, nuclear war remains a dire threat. But even more ominously, capitalism is turbocharged to destroy the natural bases of human life.

There’s no need to run through the litany of crimes capitalism is committing against nature. Humanity is obviously teetering on the edge of a precipice, peering down into a black hole below. Our most urgent task is to, at the very least, take a few steps back from the precipice.

The unfortunate fact, however, is that global capitalism will not be overcome within the next few decades. It isn’t “defeatist” to say this; it’s realistic. The inveterate over-optimism of many leftists, even in the face of a dismal history, is quite remarkable. Transitions between modes of production aren’t accomplished in a couple of decades: they take generations, and involve many setbacks, then further victories, then more defeats, etc. The long march of reactionaries to their current power in the U.S. took fifty years, and they existed in a sympathetic political economy and had enormous resources. It’s hard to believe socialists will be able to revolutionize the West and even the entire world in less time.

Fortunately, it is possible to combat ecological collapse even in the framework of capitalism. One way to do so, which, sadly, is deeply unpopular on the left, is for governments to subsidize the massive expansion of nuclear power, a very clean and effective source of energy despite the conventional wisdom. The rollout of renewable energy is important too, despite its many costs. Meanwhile, it is far from hopeless to try to force governments to impose burdensome regulations and taxes on polluting industries or even, ideally, to shut down the fossil fuel industry altogether. Capitalism itself is indeed, ultimately, the culprit, but reforms can have a major effect, at the very least buying us some time.

Climate change and other environmental disasters may, nevertheless, prove to be the undoing of civilization, in which case the social logic of a post-capitalist revolution that I’ve outlined here won’t have time to unfold. Nothing certain can be said at this point—except that the left has to stop squabbling and get its act together. And it has to be prepared for things to get worse before they get better. As Marx understood, that’s how systemic change tends to work: the worse things get—the more unstable the system becomes—the more people organize to demand change, and in the end the likelier it is that such change will happen.

The old apothegm “socialism or barbarism” has to be updated: it’s now socialism or apocalypse.

But the strategic lesson of the “purifications” I’ve suggested of Marxist theory remains: the path to socialism is not doctrinaire, not sectarian, not wedded to a single narrow ideological strain; it is catholic, inclusive, open-ended—both “reformist” and non-reformist, statist and non-statist, Marxist and anarchist, Democrat-cooperating and -non-cooperating. Loath as we might be to admit it, it is even important that we support lesser-evil voting, for instance electing Biden rather than Trump. Not only does it change people’s lives to have a centrist instead of a fascist in power; it also gives the left more room to operate, to influence policy, to advocate “radical reforms” that help lay the groundwork for new economic relations.

It’s time for creative and flexible thinking. The urgency of our situation demands it.

Notes

[1] Being an outgrowth of my Master’s thesis, the book over-emphasizes worker cooperatives. It does, however, answer the usual Marxist objections to cooperatives as a component of social revolution.

[2] If someone will counterpose here the example of Russia, which didn’t require “many decades” to go from capitalism and late-feudalism to a “Stalinist mode of production,” I’d reply that the latter was in fact like a kind of state capitalism, and therefore wasn’t so very different after all from the authoritarian, exploitative, surplus-extracting, capital-accumulating economy that dominated in the West.

[3] This is why I claim in the above-linked book that my “revisions” of Marxism are really purifications of it, eliminations of mistakes that finally make the properly understood Marxist conception of revolution consistent with the premises of historical materialism.

Donald Trump and Erik Prince's Privatization of War

(Pictured: Corporate mercenaries in Afghanistan)

By James Richard Marra

During my career as a business analyst, I learned much about why and how some businesses succeed while others fail. Failure may result from higher wage levels, employee health insurance costs, or market conditions. Nevertheless, it generally occurs due to poor management: owner incompetence, arrogance, and greed, insensitivity to fundamental business factors and best practices, or a flawed understanding of their markets and competitors.

I bring this up because the neofascist governance in Washington and its corporate partners are wooing Americans toward another imperial catastrophe in the Middle East, this time involving Iran. For these capitalists, much is never enough. So as expected, the military-technology-surveillance complex (MTSC) wishes to expand its profitable productive capacity into new or under-exploited war-commodity markets. The success of this expansion depends upon careful attention to geographic, material, and operational considerations. Best business practices demand that the MTSC develops a sound plan by first consulting experts in these areas. These factors might include those identified by the famous military theorist Carl von Clausewitz. For von Clausewitz, the three pillars of warfare are strategy, operations, and tactics. Within the MTSC’s production and marketing plans, these required military functions are transformed into profitable exchange values - money. If this program is managed well, the sky is the limit. If not, failure will likely come.

With these thoughts in mind, we might consider the case of Erik Prince, the ex-Navy Seal and founder/CEO of the failed and criminally mercenary service provider Blackwater. In 2018, Prince, the brother of Education Secretary, and public-education privatizer, Betsy DeVos, approached the Trump Administration with a proposal to privatize the Afghan War. Prince’s dog-and-pony show claimed that the war could be waged more economically and efficiently, while deploying fewer troops in smaller specialized units. 

Neofascists, like Steve Bannon, invited further discussion and exploration. This is not surprising because fascism of any sort, including today's neofascism, is an artful alliance of an anti-conventional and zealous "Leader," a hyper-nationalistic culture, and an exceptionally exploitative form of capitalism. Trump's fascism gets its "neo" in part from the fact that today's capitalism is largely unfettered, "neoliberal," finance-and-service-dominated, and monopolized. This current form differs from the manufacturing capitalism that dominated the world economy from the 1920s to the 1980s. Furthermore, history reminds us that, while Hitler disliked “industrialists,” he admired Henry Ford to the extent that, in 1938, he bestowed upon him the Grand Cross of the German Eagle.

Now, capitalism opposes worker control over their labor power. The military command structure epitomizes this, as unions are banned and the demands made upon military labor (soldiers) go unquestioned. Likewise, fascist governance requires that workers absolutely obey the will of the political Leader, as it is transformed into the productive operations in which workers participate.

Both Prince and Bannon recognized a profitable business opportunity enabled by the structural efficiencies fascism offers within a privatized war market. In this model, military needs are continually identified and marketed by the Leader and the MTSC through their political minions and the capitalist media. Once workers are indoctrinated to the benefits of war, the MTSC transforms those needs into corresponding commodities. Vast amounts of capital are provided by taxes largely levied upon the working class. Politically trumped up fears of the working class not only provide a market incentive, but also mobilize workers’ labor power, both on and off the battlefield.

Trump’s military and other members of the MTSC balked at Prince’s scheme. Generals Mattis, Kelly, and McMaster ensured that Prince’s folly was a non-starter. Given this, a question arises: How could a neofascist mercenary's neofascist proposal to a neofascist Leader fail? Prince is neither an idiot nor a novice. His operational capabilities have been successfully field-tested, are marshaled by a highly skilled cadre of special-forces experts, and bolstered by significant international technical and political support.

It occurs to me that Prince’s business failure significantly resides in his misunderstanding of the contemporary war market and its players. He doesn’t understand his competitors’ collective business model, its functional role within the neofascist governance, or its monopolistic structure. Prince’s arrogance leads him to believe he can slither his way directly to the top of the neofascist food chain, biting off a prime piece of the war market without complaint from the big players. That might work if the market were immature, and competition largely relevant to profitability. But today’s market is both mature and well organized. Leading participants synergistically avoid price wars, fight unions and organizing efforts, fund think tanks and lobbyists, contribute to the campaign coffers of servile politicians, and meet together at national and global conferences to determine market rules.

Dominant corporations viscously defend themselves from the competitive risks presented by new and less mature companies. Thus, corporations join in a “co-respective” market behavior that largely guarantees their continuing control and profitability.

Alex Hollings asks:

So why didn’t Trump...a business man that values bottom-line savings, sign off on it?...Steve Bannon, Trump’s recently fired chief strategist, was said to support Prince’s plan, but the Generals Mattis, Kelly, and McMaster have all dismissed it.  For those in Bannon’s corner, they argue it’s because he’s the outsider, free from the political pressures of the military industrial complex.

A congressional aide attending the meeting reported, “The adults hate it.”

There is another potential problem, although one that might offer a silver lining for Prince: the laws that govern American wars. These pesky laws make it more difficult for any privatized war business to control production, supply, and operational management. For a privatized war commodity to be successful, businesses require that civilian leadership regularly deliver new war-needs, which would motivate market demand. While both Democrats and Republicans are quick to fund occasional “short” wars, that isn’t enough. What is needed is a government that will go to war as unhesitatingly and continually, as Hitler did devouring the nations of Europe. A fascist leadership is ideal because it considers war to be among the noblest of human endeavors, and resists conventional or legal restraints imposed by “decadent” liberal democracies.

However, today’s renewed calls for limits upon the now imperial presidency from the American left illustrate the business risk represented by not appreciating the vicissitudes involved in political strategy. Prince’s short-term thinking led him to largely ignore the fact that presidents come and go. Public opinion changes with the lifting of a TV remote, and politicians the chase political winds like a bloodhound after a jackrabbit through a lush Kentucky meadow. Prince failed to appreciate that his business success hinged on controlling the dance card at a capitalist senior prom to which he is not invited.

My references to “neofascism” may annoy some folks: "You’re calling Trump a neofascist just because you don’t like his politics!” Although I find Trump's politics uniquely vile, that fact doesn’t inform my understanding of a “Futurist”-inspired fascism. To understand Futurism, let's allow it to speak for itself.

Futurists wish to

...sing the love of danger, the habit of energy and boldness.

...extol aggressive movement, feverish insomnia, the double-quick step, the somersault, the box on the ear, the fisticuff.

...to destroy the museum, the libraries, to fight against moralism, feminism and all opportunistic and utilitarian malignancy.

...glorify war - the only health-give [sic] of the world - militarism, patriotism, the destructive arm of the Anarchist, the beautiful ideas that kill, and contempt for woman.

These pleasantries might well have come from Donald Trump or one of his torch-bearing neo-Nazi devotees. But, they are offered by the founder of the Futurist movement, Filippo Tommaso Marinetti, in Futurist Aristocracy (1923), edited by the Italian Futurist Nanni Leone Castelli. As such, they illuminate a frightening Futurist thread between contemporary Trumpian neofascism and its historical roots. Benito Mussolini was a Futurist of sorts, and was seen by many contemporaries, Italian or otherwise, as the epitome of the aggressive and spontaneous Futurist hero. Here are a few priceless insights from Benito Mussolini’s (with Giovanni Gentile) 1932 article “Doctrine of Fascism.”

[Fascism]...repudiates the doctrine of Pacifism....[W]ar alone brings up to their highest tension all human energies and puts the stamp of nobility upon the peoples who have the courage to meet it.

For Fascism the tendency to Empire, that is to say, to the expansion of nations, is a manifestation of vitality...

Fascism attacks the whole complex of democratic ideologies and rejects them both in their theoretical premises and in their applications or practical manifestations. [F]ascism denies that the majority, through the mere fact of being a majority, van [sic] rule human societies; it denies that this majority can govern by means of a periodical consultation; it affirms the irremediable, fruitful and beneficent inequality of men, who cannot be leveled by such a mechanical and extrinsic fact as universal suffrage.

Against individualism, the Fascist conception is for the State; and it is for the individual in so far as he coincides with the State, which is the conscience and universal will of man in his historical existence.

Fascism, in short, is not only the giver of laws and the founder of institutions, but the educator and promoter of spiritual life. It wants to remake, not the forms of human life, but its content, man, character, faith. And to this end it requires discipline and authority that can enter into the spirits of men and there govern unopposed.

These happy thoughts tighten the historical thread that connects Mussolini’s historical fascism to Trump’s regime, as transmitted through pseudo-intellectuals like Steve Bannon and Sebastian Gorka. This fascist mentality now commands the most powerful military force in human history. Trump’s behavior in both deed and word is a litany of fascist, and therewith Futurist, virtues.

Possessing the legal and political prerequisites for endless warfare, war enterprises need capital to fuel ongoing accumulation. War profiteers understand that citizens purchase war commodities in the sense that they accede to the Constitutional requirement that they pay war costs through taxation. In the current war market, temporary wars no longer provide the required market potential or capital. Fighting temporary wars no longer makes market sense. Instead, the working class must purchase a product that is always urgently needed, requiring continuing maintenance, like the family car. To ensure the needed profitability, war is sold as an indispensable civic need, based upon a continually present danger. That danger comes conveniently from “terrorists,” a term whose meaning is so muddled that it can apply to anyone, anywhere, anytime, anyhow.

With the proper social and political indoctrination, and product marketing, citizens happily surrender their Constitutional right to decide against whom, where, when, and how they sacrifice themselves to the god of imperial war. They are invited by a monopoly of war service providers to choose between column A or column A. Americans now enjoy a neofascist Leader in the White House, and a semi-fascist congress willing to pass mushrooming military budgets. If there were a Constitutional challenge to this state of affairs, the matter would be decided by a Supreme Court infested with neoliberal sycophants. Thus, endless war, as always under capitalism, becomes a good business investment, and therefore good governance.

Under Trump's neofascism, the Leader commands the “supply side” of the war market. Taxes on war businesses are deeply cut, while those enterprises become decreasingly deregulated and increasingly empowered. Under contemporary capitalism, the distinction between the sales effort, which invents new needs, and commodity production is largely dissolved. With the rise of a privatized war market, the traditional relationship between democratic governance and the “invisible” divine hand that supposedly guides markets is, to echo Mussolini, "repudiated." The MTSC is now fully absorbed within the structural operations of the governance, and vice versa. The business role of the Leader is to manage a permanent war-marketing project that inspires the continuing development of new war commodities. Thus, the US Defense Department is “deconstructed” (to use one of Bannon’s favorite words), only to emerge refreshed as the Fannie Mae of American global capitalist dominance.

In sum, Prince’s business proposal was ill conceived, misinformed, and poorly timed. It suffered from management problems that most failed businesses experience. While Prince, like Trump, may have obtained some measure of business success by bullying the defenseless and lying about much, both have left an ultimate legacy of business failure and bankruptcy. Unfortunately, Trump was provided a place at the head of the capitalist table by a rapacious Republican Party and its white nationalist supporters. It will remain to be seen if Prince learns some lessons and abandons his unprofitable arrogance in favor of sound business judgment. For the sake of the American working class, I hope that won’t happen.

Why Coronavirus Could Spark a Capitalist Supernova

By John Smith

Republished from Open Democracy. This article is part of Open Democracy’s 'Decolonising the economy' series.

“Global yields lowest in 500 years of recorded history. $10 trillion of negative rate bonds. This is a supernova that will explode one day,” tweeted Bill Gross, the ‘bond king’, in 2016.

This day has come closer. Capitalism now faces the deepest crisis in its several centuries of existence. A global slump has begun that is already devastating the lives of hundreds of millions of working people on all continents. The consequences for workers and poor people in Asia, Africa, and Latin America will be even more extreme than for those living in Europe and North America, both with respect to lives lost to coronavirus and to the existential threats to the billions of people already living in extreme poverty. Capitalism, an economic system based on selfishness, greed and dog-eat-dog competition, will more clearly than ever reveal itself to be incompatible with civilisation.

Why is supernova – the explosion and death of a star – an apt metaphor for what could now be about to unfold? Why could the coronavirus, an organism 1000th the diameter of a human hair, be the catalyst for such a cataclysm? And what can workers, youth and the dispossessed of the world do to defend ourselves and to ‘bring to birth a new world from the ashes of the old’, in the words of the US labour hymn, Solidarity Forever?

To find answers to these questions, we need to understand why the ‘global financial crisis’ that began in 2007 was much more than a financial crisis, and why the extreme measures taken by G7 governments and central banks to restore a modicum of stability – in particular the ‘zero interest rate policy’, described by a Goldman Sachs banker as “crack cocaine for the financial markets” – have created the conditions for today’s crisis.

Global capitalism’s ‘underlying health issues’

The first stage of a supernova is implosion, analogous to the long-term decline in interest rates that began well before the onset of systemic crisis in 2007, which has accelerated since then, and which fell off a cliff just as coronavirus began its rampage in early January 2020. Falling interest rates are fundamentally the result of two factors: falling rates of profit, and the hypertrophy of capital, i.e. its tendency grow faster than the capacity of workers and farmers to supply it with the fresh blood it needs to live. As Marx said, in Capital vol. 1, “capital’s sole driving force [is] the drive to valorise itself, to create surplus-value… capital is dead labour which, vampire-like, only lives by sucking living labour, and lives the more, the more labour it sucks.”

These two factors combine to form a doom loop of awesome destructive power. Let us examine its most important linkages.

Many things both mask and counteract the falling rate of profit, turning this into a tendency that only reveals itself in times of crisis, of which the most important has been the shift of production from Europe, North America and Japan to take advantage of the much higher rates of exploitation available in low-wage countries. The falling rate of profit manifests itself in a growing reluctance of capitalists to invest in production; more and more of what they do invest in is branding, intellectual property and other parasitic and non-productive activities. This long-running capitalist investment strike is amplified by the global shift of production – boosting profits by slashing wages rather than by building new factories and deploying new technologies. This enables huge mark-ups, turbo-charging the accumulation of vast wealth for which capitalists have no productive use – hence the hypertrophy of capital.

This, in turn, results in declining interest rates – as capitalists compete with each other to purchase financial assets, they bid up their price, and the revenue streams they generate fall in proportion – hence falling interest rates. Falling interest rates and rising asset values have created what is, for capitalist investors, the ultimate virtuous circle – they can borrow vast sums to invest in financial assets of all kinds, further inflating their ‘value’.

Falling interest rates therefore have two fundamental consequences: the inflation of asset bubbles and the piling up of debt mountains. In fact, these are two sides of the same coin: for every debtor there is a creditor; every debt is someone else’s asset. Asset bubbles could deflate (if productivity increases), or else they will burst; economic growth could, over time, erode debt mountains, or else they will come crashing down.

Since 2008, productivity has stagnated across the world and GDP growth has been lower than in any decade since World War II, resulting in what Nouriel Roubini has called “the mother of all asset bubbles,” while aggregate debt (the total debt of governments, corporations and households), already mountainous before the 2008 financial crash, has since then more than doubled in size. The growth of debt has been particularly pronounced in the countries of the global South. Total debt for the 30 largest of them reached $72.5tn in 2019 – a 168% rise over the past 10 years, according to Bank of International Settlements data. China accounts for $43tn of this, up from $10tn a decade ago. In sum, well before coronavirus, global capitalism already had ‘underlying health issues’, it was already in intensive care.

Global capitalism – which is more imperialist than ever, since it is both more parasitic and more reliant than ever before on the proceeds of super-exploitation in low-wage countries – is therefore inexorably heading to supernova, towards the bursting of assets bubbles and the crashing of debt mountains. Everything that imperialist central banks have done since 2008 has been designed to postpone the inevitable day of reckoning. But now that day has come.

10-year US Treasury bonds are considered the safest of havens and the ultimate benchmark against which all other debt is priced. In times of great uncertainty, investors invariably stampede out of stock markets and into the safest bond markets, so as share prices fall, bond prices – otherwise known as ‘fixed income securities’ – rise. As they do, the fixed income they yield translates into a falling rate of interest. But not on March 9, when, in the midst of plummeting stock markets, 10-year US Treasury bond interest rates spiked upwards. According to one bond trader, “statistically speaking, [this] should only happen every few millennia.” Even in the darkest moment of the global financial crisis, when Lehman Brothers (a big merchant bank) went bankrupt in September 2008, this did not happen.

The immediate cause of this minor heart attack was the scale of asset-destruction in other share and bond markets, causing investors to scramble to turn their speculative investments into cash. To satisfy their demands, fund managers were obliged to sell their most easily-exchangeable assets, thereby negating their safe-haven status, and this jolted governments and central banks to take extreme action and fire their ‘big bazookas’, namely the multi-trillion dollar rescue packages – including a pledge to print money without limit to ensure the supply of cash to the markets. But this event also provided a premonition for what is down the road. In the end, dollar bills, like bond and share certificates, are just pieces of paper. As trillions more of them flood into the system, events in March 2020 bring closer the day when investors will lose faith in cash itself – and in the power of the economy and state standing behind it. Then the supernova moment will have arrived.

The left’s imperialism-denial, and its belief in the ‘magic money tree’

The gamut of the left in imperialist countries – the Jeremy Corbyn-led wing of the Labour Party in the UK; the motley crew of left-Keynesians such as Ann Pettifor, Paul Mason, Yanis Varoufakis; supporters of Bernie Sanders in USA – are united on two things: they all acknowledge, to one degree or another, that imperialist plunder of colonies and neocolonies happened in the past but do not acknowledge that imperialism continues in any meaningful way to define relations between rich and poor countries.

And they believe in one or other version of the ‘magic money tree’, in other words, they see the decline of interest rates into negative territory not as a flashing red light showing the extremity of the crisis, i.e. not as the implosion phase of a supernova, but as a green light to borrow money to finance increased state investment, social spending, a Green New Deal, and even a bit more foreign aid. In fact, there is no magic money tree. Capitalism cannot escape from this crisis, no matter how many trillions of dollars governments borrow or central banks print. The neoliberals rejected magical thinking, now they embrace it – this shows the extent of their panic, but it does not make magical thinking any less fantastical. The trillions they spent after 2007-8 bought another decade of zombie-like life for their vile system. This time they will be lucky to get 10 months, or even 10 weeks, before the explosion phase of the supernova begins.

Coronavirus – catalyst for cataclysm

The coronavirus pandemic occurred at the worst possible time: growth in the eurozone had shrunk to zero; much of Latin America and sub-Saharan Africa were already in recession; the sugar-high from Trump’s huge tax-giveaways to US corporations was fading; the US-China trade war was causing serious disruption to supply chains and was threatening to entangle the EU; and tens of millions of people joined mass protests in dozens of countries across the world.

Interest rates are now deep in negative territory – but not if you are Italy, facing an enormous increase in its debt/GDP ratio, not if you are an indebted corporation trying to refinance your debts, not if you are an ‘emerging market’. Since March 9, corporate interest rates have gone through the roof; in fact few corporations can borrow money at any price. Investors are refusing to lend to them. Corporations are now facing a credit crunch – in the midst of global negative interest rates! That’s why the ECB decided to borrow €750 billion from these same investors, and use it to buy the corporate bonds which these same investors now refuse to purchase, and why the USA’s Federal Reserve is doing the same on an even bigger scale. Italy’s (and the EU’s) fate now depends on the willingness of the Bundesbank to replace its private creditors. Their refusal to do this would be the final stage of the EU’s death agony.

During the middle two weeks of March, imperialist governments announced plans to spend $4.5 trillion bailing out their own bankrupt economies. An emergency online summit of the G20 (the G7 imperialist nations plus a dozen or so ‘emerging’ nations, including Russia, India, China, Brazil, and Indonesia) on 26 March, declared “we are injecting over $5 trillion into the global economy.” These are weasel words; by ‘global’ they actually mean ‘domestic’! The response of the ‘left’ in the imperialist countries is to clap its hands and say, we were right all along! There is a magic money tree after all! – apparently not realising that this is exactly what happened post-2008: the socialisation of private debt. Or that, unlike post-2008, this time it will not work.

Yet, as imperialist governments belatedly mobilise – and monopolise – medical resources to confront the coronavirus crisis in their own countries, they’ve abandoned poor countries to their fate. The left in the imperialist countries (or we could just say ‘imperialist left’, for short) has also ignored the fact that there is nothing in these emergency cash injections for the poor of the global South. If you are an ‘emerging market’, well, fuck off and join the queue for an IMF bail-out! As of March 24, 80 countries were standing in this queue, waiting for some of its $1tr lending capacity. $1 trillion sounds like a lot of money, and indeed it is, but, as Martin Wolf, chief economic correspondent for the Financial Times, points out, “the aggregate external financing gaps of emerging and developing countries are likely to be far beyond the IMF’s lending capacity.”

Furthermore, as Wolf suggests, the purpose of IMF loans is to help with “external financing gaps” – in other words, to bail out imperialist creditors, not the peoples of debtor nations; and they invariably come with harsh and humiliating conditions that add to the crushing burden already pressing down on the peoples of those countries. In this sense, they are just like the vast government bailouts of private capital in the rich countries – but without anything added on to finance welfare payments or partially replace wages. The aim of the latter is to purchase the docility of the working class in the imperialist nations, but they have no intention of doing this in Africa, Asia and Latin America.

On March 24, the United Nations issued an appeal for $2bn to fight the coronavirus pandemic in Africa, Asia and Latin America. This money, which the U.N. hopes to raise over the next nine months, is 1/80 of the annual budget of the U.K.’s NHS, and less than 1/2000 of the $4.5tr they plan to spend keeping their own capitalist economies alive. It is also less than 1/40 of the money which imperialist investors have taken out of ‘emerging markets’ during the first three weeks of March, “the largest capital outflow ever recorded,” according to IMF managing director Kristalina Georgieva.

The maximum extent of relief for the collateral effects of the coronavirus epidemic on the peoples of poor countries in Africa, Asia and Latin America was indicated by World Bank president, David Malpass, who said after the G20 summit ended that his board is putting together a rescue package valued at “up to $160 billion” spread out over the next 15 months – a minuscule fraction of the economic losses that the coming global slump will impose on the peoples of the absurdly-named ‘emerging markets’.

“We have a revolutionary duty to fulfill" – Leonardo Fernandez, Cuban doctor in Italy

So, what is to be done? Instead of applauding the bailout of big corporations, we should expropriate them. Instead of endorsing a temporary moratorium on evictions and the accumulation of rent arrears, we should confiscate real estate so as to protect workers and small businesses. These, and many other struggles to assert our right to life over the rights of capitalists to their property, are for the near future.

Right now the priority is to do whatever is necessary to save life and defeat the coronavirus. This means extending solidarity to those who are most vulnerable to the pandemic – homeless people, prisoners, asylum seekers enduring ‘hostile environments’ – and to the dispossessed and victims of imperialism in the slums, shantytowns and refugee camps of the global South. Raghuram Rajan, former governor of the Bank of India, points out that “pending a cure or a reliable vaccine, the world needs to fight the virus into submission everywhere in order to relax measures anywhere.” The Economist concurs: “If covid-19 is left to ravage the emerging world, it will soon spread back to the rich one.”

The coronavirus pandemic is just the latest proof that we need not so much an NHS, but a GHS – a Global Health Service. The only country that is acting on this imperative is revolutionary Cuba. They already have more than 28,000 doctors providing free health care in 61 poor countries – more than the G7 nations combined – and 52 in Italy, 120 more to Jamaica, and are helping scores of other countries to prepare for the pandemic. Even the far-right Bolsonaro government in Brazil, which last year expelled 10000 Cuban doctors, branding them terrorists, is now begging them to return.

To defeat coronavirus we must emulate Cuba’s medical internationalism. If we are to defeat this pandemic we must join with its revolutionary doctors and revolutionary people, and we must prepare do what Cuba did to make this internationalism possible – in other words, we must replace the dictatorship of capital with the power of working people. The coronavirus supernova makes socialist revolution – in imperialist countries and across the world – into a necessity, an urgent practical task, a life and death question if human civilisation is to survive and if the capitalist destruction of nature, of which the coronavirus epidemic is merely the latest symptom, is to be ended.

Thanks to Andy Higginbottom, Shih-yu Chou, and Walter Daum for comments on earlier drafts of this article.

Joe Biden’s Iraq War Vote is Disqualifying

(Photo: Bastiaan Slabbers/NurPhoto via Getty Images)

By Charles Wofford

Question: What happens if you kill several pedestrians because of a driving mistake?

Answer: You lose your license, probably do a lengthy prison sentence, and pay some hefty fines.

Question: What happens if you kill hundreds of thousands of people because of a “mistake” in governance?

Answer: You get to run for president.

In 8th grade, I marched with about a thousand others in downtown Flagstaff, AZ against the impending war in Iraq pushed by the Bush Administration. I was one of many: the war in Iraq saw some of the largest anti war demonstrations in recorded history, with over 3,000 separate events from 2002 through 2003, often happening simultaneously across multiple continents. I remember enduring the petty warmongering of my school teachers, some of whom thought that we ought to also invade North Korea, unaware – or uncaring – that millions would have died. I remember being told time and again that the Iraqi people did not understand democracy and we had to teach them how civilization worked. I recall the Bush Administration declaring that it would no longer respect the sovereignty of nations, but would seek out and destroy “terrorists” (a vague label with varying definitions even within the U.S. government) wherever it found them. It was a declaration of war against the entire world. I remember how apparently respectable intellectuals like Christopher Hitchens revealed themselves as false prophets, conveniently becoming wealthier and better known in the process.

Now, as then, only the far-right fringe supported the invasion. But in 2003, those people happened to be in power. Because the war was based on a lie, everyone who died in it died in vain. American soldiers did not die supporting our freedoms or rights; they died to further the corporate interests of oil tycoons such as then-Vice President and ex-CEO of Halliburton Dick Cheney. It also means that the hundreds of thousands of slain Iraqis were not merely killed, but murdered. The foundational claim of the entire war was a lie. Therefore it was not justified, and the unjustified taking of another’s life is called murder. The United States leaders who waged that war are responsible for the murders of thousands of Americans and hundreds of thousands of Iraqis.

The war in Iraq was an atrocity. It destroyed an entire country and cast an entire region into chaos. According to a study by The Lancet, over 600,000 Iraqis had died by the end of 2006 from both violence and infrastructure ruination caused by the war, a number which is surely much higher now in 2020. Even more horrifying, Iraq has been turned into a radioactive dump. The catastrophic effect of radiation poisoning on the population is well documented, despite attempts to cover it up. Cancer rates are significantly higher in Iraq than in any industrialized nation, and congenital birth defects are extremely common. Even American soldiers are developing cancer at elevated rates. The depleted uranium used by the U.S. military in Iraq has a half life of 4.5 billion years, which means that we can expect the sun to turn into a red giant by the time Iraq is clean again. The poisoning of a nation is an atrocity on top of the war itself, and especially so in this time of global ecological crisis. This is Hitler level destruction, and Joe Biden was right there supporting it. Now he wants to be president, because, in his own words, he “knows more than most people know,” since he’s “been around a long time.” 

How can Joe Biden say that this crime, this atrocity for which he voted, was a mistake? How can he look himself in the mirror having supported the slaughter of hundreds of thousands of people and just say “oops?” How can he look at this radioactive genocide and not recognize his complicity? Does not his very failure to do so add to the case that he is unfit to lead? He says he voted for the war to try and prevent a war, which makes no sense. Biden has been criticized for seeming out of touch, and people are wondering about his mental fitness. But even back in 2003, he showed an inability to make sound judgments. Moreover, at the time of his vote on the Iraq War, Biden was the chair of the Senate Foreign Relations Committee, an ideal spot to have a privileged view into the evidence for and against the war. His excuses do not add up; even an 8th grader had better judgment. To be a leader means to some degree to anticipate, to see further than others. Does Joe Biden see further than others?

It is one thing to make a mistake, to make a serious mistake, or even to make a mistake that hurts people. But if Joe Biden genuinely recognized any wrongdoing, he would not be running for president. Should not the magnitude of his error disqualify him from holding public office, especially the highest office in the land? Should he not at least have the decency to let someone else lead the country? This is not like using the wrong form of “there” in a high school essay, or buying decaf; this error resulted in the deaths of hundreds of thousands of people and enormous ecological destruction. What is this man doing running for president at all?

Were the United States held to the standards of international law, Joe Biden would face a lengthy prison sentence, as would Hillary Clinton, Adam Schiff, and other senators and representatives who supported that war. The leaders and architects such as President George Bush, Vice President Dick Cheney, Secretary of Defense Donald Rumsfeld, Deputy Secretary of Defense Paul Wolfowitz, Secretaries of State Colin Powell and Condoleezza Rice, and others would likely have been executed. The same would be true of those generals who first put depleted uranium into U.S. weaponry starting back in the first Gulf War. After all, we put Nazis to death at Nuremberg merely on grounds of conspiring against peace. 

Having protested the Iraq Atrocity, I cannot now in good conscience vote for someone who supported it (no, I did not vote for Clinton in 2016 and I do not regret that decision). What kind of choice is it between voting for a rapist or voting for a war criminal? Who will lecture me on Donald Trump as “the most dangerous president in history” (Sanders)? Who would dare bring up “lesser evilism” when Joe Biden is party to mass murder? Who will presume to take the moral high ground when defending someone who was “tricked” by the oh-so-cunning Bush Administration into supporting an atrocity? 

Charles Wofford is pursuing a PhD in historical musicology at the University of Colorado at Boulder.

Capitalism, COVID-19, and Crisis: A Class Analysis

(Photo Credit: Mark Lennihan, Associated Press)

By Ikemba X

The Capitalist/Imperialist Class

In the past week, the global economy experienced its worst week since 2008 (following a series of “Worst Weeks”, it keeps getting worse), and the economic crisis is sure to deteriorate as time marches on. Three years of growth in the market have evaporated, unemployment has seen a spike, multiple industrial sectors have slowed to a crawl or stopped moving altogether, and the trillion-dollar injection into the market by the Federal Reserve did almost nothing to stop the free fall (other than transfer toxic assets to the public). If the recession hasn’t already hit us, we’re in for a catastrophe when the bills are due. The following is a brief outline on how we got here, and how much worse it's going to be this time around.

The modern capitalist economy simply cannot function without large amounts of fiat currency in the form of government-backed loans. As the bourgeoisie continues its song and dance of improving the means of production, increasing production of commodities, and better perfecting the division of labor, the price of operating such vast and complex industrial armies and machines is simply too much. In order to compensate for this massive cost, the bourgeoisie in the global core have forged an alliance between industrial and finance capital, exporting ever increasing amounts of production overseas, so that cheaper labor can be exploited. At home, the use of credit, loans, and ownership of companies into shares have allowed capitalists to continue their operations, though the market has grown more unstable than ever before. The financial crisis in 2008 drove capitalism to the brink of collapse, and it was caused specifically by inherent contradictions in the system. The rate of profit has continued to fall, production has become more expensive and commodities are produced in greater volumes for lower prices. Any panic in the market has a ripple effect, and the harsh truth is that a large majority of the world’s “wealth” is artificial, mere symbols in a computer program that rely solely on blind faith. If the bourgeoisie becomes scared enough to taking out its money and halting production, the whole rotten structure collapses. If not for the action taken by the Feds over the past few decades, including multiple bouts of quantitative easing under Obama, the global market may very well have imploded long ago. It took almost a decade for the economy to mostly recover from the 2008 crisis, for the working class a recovery never really came, and some of its effects are still felt in more isolated sectors of the economy today. 

Leading up to the COVID-19 scare, there was an already existing crisis in imperialism and capitalist production. Notably, the Trade War between China and the United States has had negative effects on the rival imperialist powers, who were willing to threaten economic crises while jockeying for hegemony in the world market. The global energy sector was also entering a crisis, with Russia and the OPEC countries at an impasse on restricting oil production, which had the effect of flooding the market with oil. The overproduction of commodities in this critical sector of the economy was causing problems for the bourgeoisie in the United States, who have responded by seizing oil fields in Syria and beating the war drums, threatening Iran with invasion. Meanwhile, European nations are experiencing a contraction of unified dominance as Brexit causes a fracture in European imperialism, and a potential crisis in the UK with the looming threat of a No-Deal Brexit. This would have significant ripple effects on the global market, as the UK is one of the largest economies in the world. 

It is important to remember that this crisis was caused purely through the anarchy of capitalist production. Once the capitalists were bailed out following 2008, imperialist plunder continued and the bourgeoisie recovered, leaving the proletariat to fend for themselves and foot the bill. This time around, production really has stopped, and the effects on the capitalist economy will be disastrous. The Chinese economy today makes up 16% of global Gross World Product, is the second largest economy in the world, and has the largest pool of cheap labor, as well as being a rising imperialist power, offering predatory loans to African countries. Due to the COVID-19 pandemic, factories responsible for 70% of China’s exports have simply ceased to operate or have cut production massively, and travel to and from the country has been shut down completely. Several other countries have shut down massive sectors of their economy such as the airlines, and Italy has shut down its country altogether. Therefore, this latest crisis isn't caused by capitalists being unable to pay for their ventures, but rather there simply is no movement of capital, and no production of commodities. With this monumental economic halt/slowdown, we are staring in the face of a crisis the likes of which we have not seen in almost a century. The COVID-19 is sending the capitalist system into a freefall, and as always, the bourgeoisie and their governments will do everything in their power to make sure the workers absorb the brunt of this fall.

The Proletarian Situation

The situation in the United States is dire for the proletariat. For starters, there is a debt crisis, $14 trillion consisting mostly of mortgages, car loans, student loans, and credit cards. Deepening wealth inequality has accelerated the fall of real wages, and today (even before the arrival of COVID-19) most proletarians are in dire straits. Half of Americans make $30 thousand a year or less, and 70% of Americans live paycheck to paycheck and cannot afford a $400 crisis. Real unemployment was sitting at about 5% and has now spiked to almost 20%, and underemployment or those who have given up on finding jobs represent a forgotten sector that the US government is fine keeping in the dark. With the COVID-19 scare, layoffs are rising at an unprecedented rate, and those who aren't being fired are having their hours cut. In a country where health insurance is tied to employment, a pandemic which causes a spike in unemployment is probably the worst-case scenario for a proletarian.

The COVID-19 scare has also affected the mentality of the working class, who have begun panic buying commodities. This almost immediately resulted in a shortage of goods, which has ripped away the veil which hid the scarcity that does exist in capitalism, just like any other system. Lean manufacturing, or Just-in-Time manufacturing, provided us all with the hallucination that there was always an abundance of products for us to buy. However, after being put under pressure, the lie has been exposed for what it really is. In a nutshell, the transportation system has been developed enough that capitalists can rely on the nomadic lifestyle of proletarians in that industry. There is no large-scale storage of goods, but rather far-away sites that remain available whenever products are needed. Such a system is incredibly volatile, and any disruption in the distribution chain can cause an immediate and drastic shortage. We saw a glimpse of this with the aftermath of Hurricane Maria, when the natural disaster destroyed the colony of Puerto Rico. The result was that there was a global shortage of IV bags, since Puerto Rico was the hub of production for these goods. Now, imagine a crisis like this, but in multiple industries on every level of the production process, and not just based on production itself being shut down, but also on the transportation industry being paralyzed (like what we’ve seen with the decline in airline traffic and mass layoffs of truckers). China produces most of the world’s steel and, as stated before, their industrial production has been slashed in 70% of factories. And that is just one country. Globally, we are already seeing crippling shortages of medical supplies, most notably in Italy, the United States, and Iran, which has been the hardest hit of the three due to imperialist sanctions.

There has also been a growing trend of social distancing and self-isolation as a result of the pandemic. The cultural effects of this have the potential to negatively impact us all. Sowing fear and distrust of each other, the COVID-19 scare threatens to further divide us, further alienate us, and further fuel xenophobic and racist tendencies among white proletarians, as indicated by the recent uptick in racially-motivated attacks against proletarians of East Asian descent. This directly plays into some of the most reactionary and chauvinistic ideas in the US, expressed clearly by the Bourgeois slogan “China Lied, People Died” and scapegoating, such as labeling COVID-19 as the “Chinese Virus.”

In December of last year, the service sector accounted for 97% of new hires according to the Labor department. Additionally, the US economy relies heavily on consumer spending, and while the rush on grocery stores and online shopping may offset this in the short term, less and less people will be able to sustain this spending as incomes dry up in the coming months. Couple this development with the above-mentioned fact that most workers live paycheck to paycheck, and we see a crisis in consumption of commodities, one of the basic causes of capitalist crisis.

In short, the situation looks bad for the proletariat. Congress can’t even pass basic measures, and the clock is ticking. There have been discussions in Congress about a potential UBI bill, but if this crisis continues for several months, one-time checks will not be enough to stop the bleeding. Successive monthly checks may stop the bleeding in the interim, but the ripples effects of mass unemployment are sure to carry well into 2021, if not multiple years beyond. In other words, we’re going to see a crisis the likes of which the world has never seen before.

What Can We Do?

There have been some policies proposed by Social-Democratic elements of the Democratic Party in response to the COVID-19 pandemic. The measures proposed are attempts to treat the symptoms, and not cure the problem. Things like Medicare for All and nationalization of the healthcare system, as well as nationalizing any industries which seek government bailouts, do not get rid of the underlying economic problems which lead to the crisis we are faced with today. Medicare for All in theory protects us all from the virus, but we have seen clearly that the capitalist system of production and distribution has utterly failed the Italians, who have been hit by a chronic lack of medical supplies for their patients. In other words, what good will universal healthcare be if the medical industry itself cannot handle the demand. Currently, the for-profit system in the US offers less than 1 million hospital beds, in a nation of 330 million people. Additionally, our aim should not be to simply treat the sick. We must have a centrally-planned economy, with systems in place that prepare large storages of medical supplies we need for when viruses like this are unleashed on the world. We need an economic system that does not collapse after one month of a fraction of its production being cut. 

Activists should be cautious moving forward in their political work. The most important thing we can implement right now is Serve-the-People survival programs, specifically in terms of food and medical supplies. In doing our work, make sure to have hand sanitizer, gloves, and masks on hand for use and distribution. We should also not allow social distancing and hygiene practices to be spurred on by panic, and use them with clear heads, knowing full well that we are protecting the lives of others through these actions, not just ourselves.

The large-scale demonstrations are coming. No society can have mass unemployment and shortages of basic materials without intensifying the class struggle as a result. We must be prepared to go among the masses where they organize, and organize our own demonstrations, building strong links with the people. Go to the masses, learn from them, and educate them. Most of all, stay safe. Use the time given to us in this crisis to study theory from revolutionary teachers such as Marx, Lenin, and Mao. Do not hesitate, and do not be afraid of study. Study the conditions of the people. I strongly recommend we all crack open Lenin’s “What Is To Be Done” again, in preparation for the coming months.

Everyone's a Socialist in a Crisis

By Tom Bramble

Republished from Red Flag.

One of the most prevalent ideological mantras of Western capitalism is that the market should rule. But as the latest health and economic crises demonstrate, capitalists soon forget their worship of the market when times get tough. They scream for government money, and plenty of it. It turns out that “the market” is fine when it comes to whipping workers to accept lower wages, but when it comes to lower profits, the market can go hang.

Every student with the misfortune to have studied economics at school or university will know that “the market” is the god before which we must all kneel. Markets bring consumers and producers together to ensure an equilibrium of supply and demand, the textbooks tell us. We may all be individuals each pursuing our own private interests, but this selfish endeavour miraculously results in an optimum outcome for all.

You don’t even have to step inside a classroom to have received this lesson. It’s rammed home in normal times in every newspaper, in every news bulletin on the TV, in every politician’s speech. Just listen to them. Governments can’t expand spending on Newstart because “the markets” won’t allow it. Governments shouldn’t ramp up public housing because that will throw property markets into a spin. Competition should be opened between universities because a market in education will sift out the bad providers from the good.

The champions of the market, if challenged to explain how it is that markets consistently result in supplies of goods lurching from shortages to gluts, point to the economic dysfunction of the old Soviet Union as proof that if “planning” replaces the market, a much bigger disaster ensues.

It doesn’t take an Einstein to see what rubbish this is. The last thing any capitalist wants is “free competition”, because that might squeeze their profits. Just look at how the supermarkets have destroyed small shops or how any new industry that emerges is soon dominated by three or four companies globally.

But there’s another angle to this. Capitalists preach “the market” for the working class – stand on your own two feet, don’t rely on the government – but themselves sponge off the public big time. Just look at the billions in subsidies and tax concessions the fossil fuel companies, huge enterprises for the most part, extract from state and federal governments in Australia. The vehicle manufacturers raked in hundreds of millions a year from the Australian government for decades until deciding it wasn’t enough and went overseas. This is why big companies and industry groups hire armies of former politicians to lobby on their behalf in the offices of premiers and prime ministers – there’s money in government coffers and they want it.

And while the capitalists talk about “the market” setting wages for workers, in reality, they don’t really allow the market to do the job. They use the whole apparatus of state repression, the industrial tribunals, the police, the courts to suppress workers’ rights to organise to pursue their demands.

But when a crisis hits all the bullshit about the market is thrown to the winds. And that is just what we are seeing now. Faced with the collapse of the capitalist economy, for the second time in a dozen years, with massive bankruptcies on the table and the stock market plunging by more than 30 percent and more to come, fervent advocates of the free market are now embracing government intervention to save their skins. As the Financial Times put it on 18 March, “World leaders have been forced to tear up the traditional economic playbook in response to the historic jolt to the global economy”.

In the United States, the heart of free market capitalism, capitalists and politicians alike are demanding huge government handouts. As the New York Times explained on 17 March: “Business groups, local and state leaders and a growing chorus of lawmakers and economists begged the federal government to spend trillions of dollars to pay workers to stay home and funnel money to companies struggling with an abrupt end to consumer activity”.

Politicians and their advisers who just a week ago were scorning the idea of “helicopter money”, government payments to businesses and consumers to stimulate the economy, are now trying to outbid each other to push the figure up. The Trump administration, proclaiming a state of war in the fight against coronavirus and the economic crisis, will shortly launch a huge fiscal stimulus program pumping more than US$1 trillion into the economy in two stages, including potentially $1,000 handouts to spur spending. And there will be more to come.

In other times, Trump might have denounced his proposals as “socialism”. Not today. He now boasts that his new package will be “big and bold”. His chief adviser, Larry Kudlow, says that Trump has agreed to do “whatever it takes” to address the crisis. Senator John Cornyn, second highest ranking Republican in the Senate, for whom government intervention is normally anathema, explained: “Our economy, our whole economy is in jeopardy”. Some in the Democratic Party, which in recent years has become the favoured party of Wall Street, are proposing a monthly payment to every American for the duration of the crisis. Alongside this direct injection of funds into the economy, the US Federal Reserve Bank is pumping trillions of dollars into the banks.

As in the US, so too in the rest of the world. The European Commission, which has long insisted that member states keep their budget deficits to 3 percent of GDP, has lifted limits on government borrowing. In 2015, it refused to allow the Greek government to hike spending when faced with unemployment of 20 percent, but is now telling governments it’s open slather. The future of European capitalism is at stake, so nothing is off the table. The Swedish government is allowing businesses to defer tax payments for up to a year at a cost equivalent to 6 percent of GDP. Britain has unveiled a £330 billion package of emergency loan guarantees to business and £20 billion in fiscal support.

Tory chancellor (treasurer) Rishi Sunak, said: “This is not a time for ideology or orthodoxy, this is a time to be bold ... I’ll do whatever it takes”. Pedro Sanchez, Spanish prime minister, triggered what he called “the biggest mobilisation of resources in Spain’s’ democratic history”, including €100 billion in state loan guarantees. French finance minister Bruno Le Maire, who has put up €300 billion in state loans to business, told the press: “I will not hesitate [to use] all the means available to me”.

The European Central Bank, which estimates that the crisis might result in the euro area economy shrinking by more than 4 percent this year, is set to inject more than €1 trillion into the European banks in the next nine months. “Extraordinary times require extraordinary action”, says ECB president Christine Lagarde.

In Australia, the Coalition government which has made “balancing the budget” a central feature of its platform, is now spending $18 billion, three-quarters of which will go to business. It is now lining up a new wave of spending commitments for business, both of a general nature, valued at more billions, and also to specific sectors like tourism, sports, arts and entertainment and the airlines which will total more than $1 billion.

The Australian Chamber of Commerce and Industry is urging the federal government to provide wage subsidies to workers, equivalent in value to Newstart to all businesses experiencing a sharp downturn. It is also asking the government to provide concessional loans of up to half a million dollars, with 80 percent of the debt guaranteed by government, as well as wage subsidies to cover sick leave entitlements. Nothing but corporate welfare of a kind that they have long decried when applied to workers themselves.

In the short term, working class households will get some benefits from this cash splash. In Australia welfare beneficiaries will be getting $750 in their bank accounts. In the United States it is likely that Americans will receiving close to $1,000. But this is just short term relief to get the economy moving. The long term benefits will go to the capitalist class in the form of tax cuts and other financial concessions.

The current crisis demonstrates not only that all the ideological nonsense about the virtues of the free market is quickly thrown overboard when capitalist interests are threatened, but also that the idea that governments are essentially powerless in the face of the markets is rubbish.

Governments are not helpless victims who cannot do anything in the face of “economic reality”. In the normal course of events, when we demand things like better welfare, health care or education, governments tell us that it isn’t possible.

Workers every day face their own personal crises – lack of money to pay the rent or the possibility of defaulting on their mortgage because the boss didn’t call them in for work this week, overdue utility bills that must be paid or risk being cut off, expenses for children’s education that fall due, the fear of redundancy. These are crises that are experienced personally but are really a collective crisis of everyday life for working class people. But when we ask for governments to respond, we are told that addressing these things collectively is not possible, and that this is just the way things are.

But when the capitalist system goes into crisis, governments act promptly. It turns out that political decisions about the economy are possible and it is wholly possible for governments to tell the markets to go jump. The president of the eurozone financial ministers committee summed up the prevailing attitude today: “Rest assured that we will defend the euro with everything we have got”. European finance ministers are looking at deploying a firefighting fund set up during the last eurozone crisis, with €410 billion of capacity. In the case of Spain, the Financial Times reports that an inner circle of government has assumed “command economy powers”. The Spanish government will take responsibility for guaranteeing medical, food and energy supplies.

Most of the time we’re told that “the economy” can’t afford a decent standard of living for workers – higher minimum wages, liveable Newstart allowances, a massively expanded public housing program to get people out of the private rental market, free university education. Budgets have to balance. Businesses have to be competitive. Taxes have to be kept low.

And now, all of a sudden, we’re finding that the economy can, apparently, afford things that we have long demanded. Governments around the world are now laying out money on things that just weeks ago they would have attacked as unaffordable.

The Morrison government has been attacked even by the Business Council for not lifting the Newstart allowance. And now it’s spending $4.7 billion on a one-off $750 payment to millions on welfare. State governments too are ramping up health spending. In Western Australia, the government is freezing utility bills and public transport charges, doubling energy assistance payments and making sick and carers’ leave more available for public sector workers who either have the virus themselves or who need to care for others.

The Hong Kong government has handed out $1,000 payments to citizens. The Italian government, faced with one of the worst outbreaks of COVID-19, is suspending mortgage payments. In New Zealand, the government has raised all welfare benefits, permanently, by NZ$25 a week and doubled winter energy payments to beneficiaries and age pensioners. In France also, benefits are being hiked and made more widely available.

It’s not that governments have suddenly discovered a big pot of gold in the basement of the central banks. They say that they are taking these measures to both protect public health and to save the economy. But it’s obvious which takes priority. The new measures constitute the largest bailout bonanza in world history, carried out through state-administered transfers of public wealth and current and future debt to billionaires and big business: socialisation of losses, privatisation of profits. The outcome will be to further transfer, consolidate and concentrate wealth, just as has occurred since the GFC. While there is discussion about small handouts, nothing serious is being proposed to halt the mass layoffs now gathering steam.

In pretty much every spending package, subsidies to business, government loans and tax concessions account for two-thirds or more of the funds outlaid. Things that directly benefit workers – the big majority of the population – account for only one-third of the money. Just think of Australia: $13 billion to business, $4.7 billion to those on welfare.

When you think of the humiliating restrictions imposed on Centrelink clients, business is being showered with money with no strings attached. In Australia, the federal government is offering subsidies to bosses to keep apprentices and trainees. But all that does is encourage bosses to sack the trainee at the end of the six months and take on another one, with another government subsidy. No real jobs created, just a steady flow of money flowing into the bosses’ pockets.

But it’s not just a question of the money being disbursed. Other sacred cows are being slaughtered. The sanctity of private property, for example. The Spanish government has announced that it is requisitioning private hospitals and healthcare providers for the duration and developing plans to house and feed the homeless.

President Trump announced a series of extraordinary measures on 18 March, seizing on the powers vested in him by the Defence Production Act to steer production by private companies to overcome the shortage of masks, ventilators and other health supplies. Playing catchup on testing for COVID-19, Trump is deploying two Navy hospital ships to New York City and the West Coast. Astonishingly for the United States, whose president made his fortune in real estate, the Housing and Urban Development department will suspend foreclosures and evictions until at least the end of April. The federal government is also requiring employers to provide sick leave to workers infected with the virus. In California, the governor has announced plans to buy hotels to house some of the state’s 150,000 homeless people.

In Austria, healthcare workers with children are provided access to free childcare to allow them to continue working. In South Korea, the government is offering emergency child care to parents still at work, with class sizes limited to ten and supervised by trained teachers. In Australia, according to the Guardian, discussions are underway to underwrite home mortgages and even employment guarantees.

It turns out that these things, too, can be done.

So, in an economic emergency, few of the usual rules apply. Governments can marshal the resources and can threaten the narrow interests of private businesses. Hardcore libertarians despise these measures as rampant socialism. From their perspective, they’re right: the very existence of such programs is condemnation of the free market capitalist model that they promote. But they are best seen only as another approach to the management of the capitalist economy.

The fact that governments across the OECD are now prepared to spend trillions of dollar to save the financial system from collapse only confirms that the world economy cannot be left safely in the hands of “the market”. And, the situation clearly confirms that when the capitalist class and governments deem it necessary to save their system, lots of measures they once denounced as “unaffordable”, not permitted by the condition of “the economy”, are actually affordable and permitted. Governments can act when required. The ideological justifications of yesterday are revealed as threadbare. But nor are government interventions of this nature geared towards the interests of the working class, only the interests of the bosses.

Fight the Virus, Not China! The History and Background of Trump’s Racist COVID-19 Rhetoric

(Getty images)

By Derek R. Ford

Many are increasingly and quite justifiably outraged at Trump’s repeated attempts to link the novel coronavirus known as COVID-19 to both the city of Wuhan and the entire country of China.

Meanwhile, others on the right link COVID-19 to China not just geographically but culturally. John Cornyn, a U.S. Senator from Texas said the pandemic stemmed from “the culture where people eat bats and snakes and dogs and things like that.” Some were quick to point out that in the state he represents, “several towns host annual festivals where residents milk rattlesnakes for venom to be used in antivenin and fry up filets of snake flesh as a novelty snack.” Others noted that “Mad Cow” disease originated in England, and the H1N1 flu originated in the U.S. and Mexico.

While mainstream journalists have, to some extent, pushed back against this racism, they’ve quickly backed down when Trump characteristically defends his position or refuses to comment. As Elie Mystal pointed out in The Nation, Philip Wegmann of RealClearPolitics quickly moved away from the topic by noting he was “switching gears to a larger question.” Mystal writes that, “If the media were doing their job, this would be the story: The president of the United States is putting lives at risk during a global pandemic by inciting violence against fellow Americans.”

Trump’s racism and xenophobia is nothing new. Yet neither is the imperialist and racist demonization of China and Chinese people. This history, both recent and stretching back a century ago, is one in which not only are Democrats and Republicans complicit, but so too are the corporate news media.

Coronavirus coverage was anti-China from the beginning

From the earliest coverage, US media and politicians did everything they could to mobilize the Coronavirus as part of a broader anti-China demonization campaign. Sometimes this included outright lies and fabrications, like when the New York Times reported that Dr. Li Wenliang, an early identifier of the novel coronavirus, was arrested by Chinese authorities in the middle of the night for “whistleblowing.”

As K.J. Noh reported for Counterpunch, Dr. Li wasn’t a “whistleblower.” He didn’t report anything to authorities but sent a private message to seven colleagues (that included a confidential medical record). Others had, however, reported early signs of a novel virus to the proper authorities, and they weren’t reprimanded at all. Perhaps the reason that Dr. Li didn’t notify even his own hospital administration was because he had no qualifications on the matter.

Of no small importance was that Dr. Li was never arrested! Instead, he “was called in, lightly reprimanded (talked to, and signed a document not to spread rumors) and went straight back to work.”

The coverage was part of an attempt to portray the government of the People’s Republic of China as ineffective, repressive, and chaotic, willing to do anything to hide the truth.

While China’s response was bound to entail errors, as any response would, the World Health Organization found it worthy of praise, including its transparency.

Indeed, China took extraordinary, coordinated, and swift efforts to contain the virus, including the importation of 20,000 medical workers to Hubei province, the emergency construction of hospitals, the provision of electricity to people even if they couldn’t pay (and not just a deferral of bills), the forbidding of price increases, free treatment of medical expenses, and more.

Instead of learning from and helping China (not to mention preparing for an outbreak in the U.S.), the US establishment focused all of its energy on China bashing. This had devastating consequences. In his important article for Liberation News, Saul Kanowitz documented just a few of them, from stores posting signs that exclude Chinese people from entering and Chinese restaurants being vandalized to high school students in California assaulting a classmate. China towns across the U.S. were empty. Even Asian people who weren’t Chinese were assaulted and harassed.

“Chinese Toy Terror”

In her 2012 book, Animacies, Mel Y. Chen (2012, Duke University Press) documents the racist and imperialist anti-China propaganda that dominated public discourse in the 2007 “lead panic.” The discovery of lead in toys made in China featured prominently in the domestic hysteria. News coverage and warnings, bolstered by the Consumer Product Safety Commission, Fud and Drug Administration, and others, Chen notes, had three things in common:

“First, they pointed to the dangers of lead intoxication as opposed to other toxins. Second, they emphasized the vulnerability of American children to this toxin. Third, they had a common point of origination: China, for decades a major supplier of consumer products to the United States and responsible for various stages in the production stream” (160).

Chen gives a number of blog and news headlines clearly formulating lead as a weapon of China against poor U.S. children, like “Why is China Poisoning Our Babies?” and “Chinese Toy Terror.”

Not coincidentally, Chen observes, this was just one year after China superseded the U.S. in global exports.

This campaign itself drew on previous campaigns demonizing China and its people, perhaps most significantly the “Yellow Peril” of the early 20th century, during which the U.S. barred Asian immigration through the Immigration Act of 1917.

The racism of the anti-Chinese “lead panic” of 2007 is most apparent when contrasted with the long struggles against lead-based paint in the U.S. Grassroots campaigns were largely successful in creating awareness about lead paint and banning its future use. Yet lead poisoning continued in poor and working-class communities, particularly Black communities.

And, of course, lead continues to contaminate drinking water in cities across the U.S. In my own county of Marion, Indiana, school water tested positive for led in more than half of the schools and child care sites in the county. A 2019 health department report found that lead levels were between 20 and 8,630 parts per billion. The Environmental Protection Agency’s threshold is 15 parts per billion. This was included in the internal report obtained by IndyStar journalist Suzette Hackney, not the public report they released.

Fight the virus, not the people!

While it’s true that Trump is anxious for a scapegoat to blame for his administration’s appalling response to the current pandemic, this doesn’t entirely explain his efforts to identify COVID-19 with China.

The Democratic Party and the corporate media are mostly outraged at the blatancy of Trump’s anti-China racism, because when it comes to demonizing China, they play their dutiful role. The entire U.S. political establishment is firm in its orientation toward China: it must be defeated. Since the 1949 revolution that overthrew colonialism and established the People’s Republic of China, the consensus in Washington has been one of counterrevolution in China.

As China strength and importance continues to grow, the U.S. is increasingly in direct confrontation with China on military, economic, and political matters.

The response of progressive people in the U.S. has to be as deep and wide as the ruling class’ anti-China campaign. We must condemn not only the overtly racist rhetoric of Trump, but the entire demonization campaign against China, both right now and after the COVID-19 crisis has passed.