"Power Anywhere Where There's People": A Speech by Fred Hampton (1969)

The following is the full transcript of a speech given by Chairman Fred Hampton Sr. at Olivet Baptist Church in Chicago in 1969.

Power anywhere where there's people. Power anywhere where there's people. Let me give you an example of teaching people. Basically, the way they learn is observation and participation. You know a lot of us go around and joke ourselves and believe that the masses have PhDs, but that's not true. And even if they did, it wouldn't make any difference. Because with some things, you have to learn by seeing it or either participating in it. And you know yourselves that there are people walking around your community today that have all types of degrees that should be at this meeting but are not here. Right? Because you can have as many degrees as a thermometer. If you don't have any practice, they you can't walk across the street and chew gum at the same time.

Let me tell you how Huey P. Newton, the leader, the organizer, the founder, the main man of the Black Panther Party, went about it.

The community had a problem out there in California. There was an intersection, a four-way intersection; a lot of people were getting killed, cars running over them, and so the people went down and redressed their grievances to the government. You've done it before. I know you people in the community have. And they came back and the pigs said "No! You can't have any." Oh, they dont usually say you can't have it. They've gotten a little hipper than that now. That's what those degrees on the thermometer will get you. They tell you "Okay, we'll deal with it. Why dont you come back next meeting and waste some time?"

And they get you wound up in an excursion of futility, and you be in a cycle of insaneness, and you be goin' back and goin' back, and goin' back, and goin' back so many times that you're already crazy.

So they tell you, they say, "Okay niggers, what you want?" And they you jump up and you say, "Well, it's been so long, we don't know what we want", and then you walk out of the meeting and you're gone and they say, "Well, you niggers had your chance, didnt you?"

Let me tell you what Huey P. Newton did.

Huey Newton went and got Bobby Seale, the chairman of the Black Panther Party on a national level. Bobby Seale got his 9mm, that's a pistol. Huey P. Newton got his shotgun and got some stop signs and got a hammer. Went down to the intersection, gave his shotgun to Bobby, and Bobby had his 9mm. He said, "You hold this shotgun. Anybody mess with us, blow their brains out." He put those stop signs up.

There were no more accidents, no more problem.

Now they had another situation. That's not that good, you see, because its two people dealing with a problem. Huey Newton and Bobby Seale, no matter how bad they may be, cannot deal with the problem. But let me explain to you who the real heroes are.

Next time, there was a similar situation, another four-way corner. Huey went and got Bobby, went and got his 9mm, got his shotgun, got his hammer and got more stop signs. Placed those stop signs up, gave the shotgun to Bobby, told Bobby "If anybody mess with us while were putting these stop signs up, protect the people and blow their brains out." What did the people do? They observed it again. They participated in it. Next time they had another four-way intersection. Problems there; they had accidents and death. This time, the people in the community went and got their shotguns, got their hammers, got their stop signs.

Now, let me show you how were gonna try to do it in the Black Panther Party here. We just got back from the south side. We went out there. We went out there and we got to arguing with the pigs or the pigs got to arguing-he said, "Well, Chairman Fred, you supposed to be so bad, why dont you go and shoot some of those policemen? You always talking about you got your guns and got this, why dont you go shoot some of them?"

And I've said, "you've just broken a rule. As a matter of fact, even though you have on a uniform it doesn't make me any difference. Because I dont care if you got on nine uniforms, and 100 badges. When you step outside the realm of legality and into the realm of illegality, then I feel that you should be arrested." And I told him, "You being what they call the law of entrapment, you tried to make me do something that was wrong, you encouraged me, you tried to incite me to shoot a pig. And that ain't cool, Brother, you know the law, dont you?"

I told that pig that, I told him "You got a gun, pig?" I told him, "You gotta get your hands up against the wall. We're gonna do what they call a citizens arrest." This fool dont know what this is. I said, "Now you be just as calm as you can and don't make too many quick moves, cause we don't wanna have to hit you."

And I told him like he always told us, I told him, "Well, I'm here to protect you. Don't worry about a thing, 'm here for your benefit." So I sent another Brother to call the pigs. You gotta do that in a citizen's arrest. He called the pigs. Here come the pigs with carbines and shotguns, walkin' out there. They came out there talking about how they're gonna arrest Chairman Fred. And I said, "No fool. This is the man you got to arrest. He's the one that broke the law." And what did they do? They bugged their eyes, and they couldn't stand it. You know what they did? They were so mad, they were so angry that they told me to leave.

And what happened? All those people were out there on 63rd Street. What did they do? They were around there laughing and talking with me while I was making the arrest. They looked at me while I was rapping and heard me while I was rapping. So the next time that the pig comes on 63rd Street, because of the thing that our Minister of Defense calls observation and participation, that pig might be arrested by anybody!

So what did we do? We were out there educating the people. How did we educate them? Basically, the way people learn, by observation and participation. And that's what were trying to do. That's what we got to do here in this community. And a lot of people don't understand, but there's three basic things that you got to do anytime you intend to have yourself a successful revolution.

A lot of people get the word revolution mixed up and they think revolutions a bad word. Revolution is nothing but like having a sore on your body and then you put something on that sore to cure that infection. And Im telling you that were living in an infectious society right now. Im telling you that were living in a sick society. And anybody that endorses integrating into this sick society before its cleaned up is a man whos committing a crime against the people.

If you walk past a hospital room and see a sign that says "Contaminated" and then you try to lead people into that room, either those people are mighty dumb, you understand me, cause if they weren't, they'd tell you that you are an unfair, unjust leader that does not have your followers' interests in mind. And what were saying is simply that leaders have got to become, we've got to start making them accountable for what they do. They're goin' around talking about so-and-so's an Uncle Tom so we're gonna open up a cultural center and teach him what blackness is. And this n****r is more aware than you and me and Malcolm and Martin Luther King and everybody else put together. That's right. They're the ones that are most aware. They're most aware, cause they're the ones that are gonna open up the center. They're gonna tell you where bones come from in Africa that you can't even pronounce the names. Thats right. They'll be telling you about Chaka, the leader of the Bantu freedom fighters, and Jomo Kenyatta, those dingo-dingas. They'll be running all of that down to you. They know about it all. But the point is they do what they're doing because it is beneficial and it is profitable for them.

You see, people get involved in a lot of things that's profitable to them, and we've got to make it less profitable. We've got to make it less beneficial. I'm saying that any program that's brought into our community should be analyzed by the people of that community. It should be analyzed to see that it meets the relevant needs of that community. We don't need no n*****s coming into our community to be having no company to open business for the n*****s. There's too many n*****s in our community that can't get crackers out of the business that they're gonna open.

We got to face some facts. That the masses are poor, that the masses belong to what you call the lower class, and when I talk about the masses, I'm talking about the white masses, I'm talking about the black masses, and the brown masses, and the yellow masses, too. We've got to face the fact that some people say you fight fire best with fire, but we say you put fire out best with water. We say you don't fight racism with racism. We're gonna fight racism with solidarity. We say you don't fight capitalism with no black capitalism; you fight capitalism with socialism.

We ain't gonna fight no reactionary pigs who run up and down the street being reactionary; we're gonna organize and dedicate ourselves to revolutionary political power and teach ourselves the specific needs of resisting the power structure, arm ourselves, and we're gonna fight reactionary pigs with INTERNATIONAL PROLETARIAN REVOLUTION. That's what it has to be. The people have to have the power: it belongs to the people.

We have to understand very clearly that there's a man in our community called a capitalist. Sometimes he's black and sometimes he's white. But that man has to be driven out of our community, because anybody who comes into the community to make profit off the people by exploiting them can be defined as a capitalist. And we don't care how many programs they have, how long a dashiki they have. Because political power does not flow from the sleeve of a dashiki; political power flows from the barrel of a gun. It flows from the barrel of a gun!

A lot of us running around talking about politics don't even know what politics is. Did you ever see something and pull it and you take it as far as you can and it almost outstretches itself and it goes into something else? If you take it so far that it is two things? As a matter of fact, some things if you stretch it so far, it'll be another thing. Did you ever cook something so long that it turns into something else? Ain't that right?

That's what were talking about with politics.

That politics ain't nothing, but if you stretch it so long that it can't go no further, then you know what you got on your hands? You got an antagonistic contradiction. And when you take that contradiction to the highest level and stretch it as far as you can stretch it, you got what you call war. Politics is war without bloodshed, and war is politics with bloodshed. If you don't understand that, you can be a Democrat, Republican, you can be Independent, you can be anything you want to, you ain't nothing.

We don't want any of those n*****s and any of these hunkies and nobody else, radicals or nobody talking about, "I'm on the Independence ticket." That means you sell out the republicans; Independent means you're out for graft and you'll sell out to the highest bidder. You understand?

We want people who want to run on the People's Party, because the people are gonna run it whether they like it or not. The people have proved that they can run it. They run it in China, they're gonna run it right here. They can call it what they want to, they can talk about it. They can call it communism, and think that that's gonna scare somebody, but it ain't gonna scare nobody.

We had the same thing happen out on 37th Road. They came out to 37th road where our Breakfast for children program is, and started getting those women who were kind of older, around 58---that's, you know, I call that older cause Im young. I aint 20, right, right! But you see, they're gonna get them and brainwash them. And you ain't seen nothin till you see one of them beautiful Sisters with their hair kinda startin getting grey, and they ain't got many teeth, and they were tearin' them policemen up! They were tearing em up! The pigs would come up to them and say "You like communism?"

The pigs would come up to them and say, "You scared of communism?" And the Sisters would say, "No scared of it, I ain't never heard of it."

"You like socialism?"

"No scared of it. I ain't never heard of it."

The pigs, they be crackin' up, because they enjoyed seeing these people frightened of these words.

"You like capitalism?"

Yeah, well, that's what I live with. I like it.

"You like the Breakfast For Children program, n****r?"

"Yeah, I like it."

And the pigs say, "Oh-oh." The pigs say, "Well, the Breakfast For Children program is a socialistic program. Its a communistic program."

And the women said, "Well, I tell you what, boy. I've been knowing you since you were knee-high to a grasshopper, n****r. And I don't know if I like communism and I don't know if I like socialism. But I know that that Breakfast For Children program feeds my kids, n****r. And if you put your hands on that Breakfast For Children program, I'm gonna come off this can and I'm gonna beat your ass like a ...."

That's what they be saying. That's what they be saying, and it is a beautiful thing. And that's what the Breakfast For Children program is. A lot of people think it is charity, but what does it do? It takes the people from a stage to another stage. Any program that's revolutionary is an advancing program. Revolution is change. Honey, if you just keep on changing, before you know it, in fact, not even knowing what socialism is, you dont have to know what it is, they're endorsing it, they're participating in it, and they're supporting socialism.

And a lot of people will tell you, way, Well, the people dont have any theory, they need some theory. They need some theory even if they don't have any practice. And the Black Panther Party tells you that if a man tells you that he's the type of man who has you buying candy bars and eating the wrapping and throwing the candy away, he'd have you walking East when you're supposed to be walking West. Its true. If you listen to what the pig says, you be walkin' outside when the sun is shining with your umbrella over your head. And when it's raining youll be goin' outside leaving your umbrella inside. That's right. You gotta get it together. Im saying that's what they have you doing.

Now, what do WE do? We say that the Breakfast For Children program is a socialistic program. It teaches the people basically that by practice, we thought up and let them practice that theory and inspect that theory. What's more important? You learn something just like everybody else.

Let me try to break it down to you.

You say this Brother here goes to school 8 years to be an auto mechanic. And that teacher who used to be an auto mechanic, he tells him, "Well, n****r, you gotta go on what we call on-the-job-training." And he says, "Damn, with all this theory I got, I gotta go to on-the-job-training? What for?"

He said, "On on-the-job-training he works with me. Ive been here for 20 years. When I started work, they didn't even have auto mechanics. I ain't got no theory, I just got a whole bunch of practice."

What happened? A car came in making a whole lot of funny noise. This Brother here go get his book. He on page one, he ain't got to page 200. I'm sitting here listening to the car. He says, "What do you think it is?"

I say, "I think its the carburetor."

He says, "No I don't see anywhere in here where it says a carburetor make no noise like that." And he says, "How do you know its the carburetor?"

I said, "Well, n****r, with all them degrees as many as a thermometer, around 20 years ago, 19 to be exact, I was listening to the same kind of noise. And what I did was I took apart the voltage regulator and it wasn't that. Then I took apart the alternator and it wasn't that. I took apart the generator brushes and it wasn't that. I took apart the generator and it wasn't that. I took apart the generator and it wasn't even that. After I took apart all that I finally got to the carburetor and when I got to the carburetor I found that that's what it was. And I told myself that 'fool, next time you hear this sound you better take apart the carburetor first.'"

How did he learn? He learned through practice.

I dont care how much theory you got, if it don't have any practice applied to it, then that theory happens to be irrelevant. Right? Any theory you get, practice it. And when you practice it you make some mistakes. When you make a mistake, you correct that theory, and then it will be corrected theory that will be able to be applied and used in any situation. Thats what we've got to be able to do.

Every time I speak in a church I always try to say something, you know, about Martin Luther King. I have a lot of respect for Martin Luther King. I think he was one of the greatest orators that the country ever produced. And I listened to anyone who speaks well, because I like to listen to that. Martin Luther King said that it might look dark sometime, and it might look dark over here on the North Side. Maybe you thought the room was going to be packed with people and maybe you thought you might have to turn some people away and you might not have enough people here. Maybe some of the people you think should be here are not here and you think that, well if they're not here then it won't be as good as we thought it could have been. And maybe you thought that you need more people here than you have here. Maybe you think that the pigs are going to be able to pressure you and put enough pressure to squash your movement even before it starts. But Martin Luther King said that he heard somewhere that only when it is dark enough can you see the stars. And we're not worried about it being dark. He said that the arm of the moral universe is long, but it bends toward heaven.

We got Huey P. Newton in jail, and Eldridge Cleaver underground. And Alprentice Bunchy Carter has been murdered; Bobby Hutton and John Huggins been murdered. And a lot of people think that the Black Panther Party in a sense is giving up. But let us say this: That we've made the kind of commitment to the people that hardly anyone else has ever made.

We have decided that although some of us come from what some of you would call petty-bourgeois families, though some of us could be in a sense on what you call the mountaintop. We could be integrated into the society working with people that we may never have a chance to work with. Maybe we could be on the mountaintop and maybe we wouldn't have to be hidin' when we go to speak places like this. Maybe we wouldn't have to worry about court cases and going to jail and being sick. We say that even though all of those luxuries exist on the mountaintop, we understand that you people and your problems are right here in the valley.

We in the Black Panther Party, because of our dedication and understanding, went into the valley knowing that the people are in the valley, knowing that our plight is the same plight as the people in the valley, knowing that our enemies are on the mountain, to our friends are in the valley, and even though its nice to be on the mountaintop, we're going back to the valley. Because we understand that there's work to be done in the valley, and when we get through with this work in the valley, then we got to go to the mountaintop. We're going to the mountaintop because there's a motherfucker on the mountaintop that's playing King, and he's been bullshitting us. And weve got to go up on the mountain top not for the purpose of living his life style and living like he lives. We've got to go up on the mountain top to make this motherfucker understand, goddamnit, that we are coming from the valley!

COVID-19, Marxism, and the Metabolic Rift

By Sagar Sanyal

Originally published at Red Flag.

The COVID-19 pandemic is far from a purely natural occurrence. Respiratory viruses like SARS-CoV-2 (the virus that causes COVID-19) that exist in populations of birds and various mammals such as pigs, horses, cows and humans, are nothing new. But the circulation of these viruses between species, and the frequency of viruses spreading from animals to humans, has increased in recent decades, and changes in the relationship between human society and nature have been the main driver of this.

The origin of COVID-19 and the vector for its spread to humans are still under investigation by scientists. The closest variant of the virus has been identified in bats, and it’s possible it was transmitted to humans through wild meat or bush meat markets, perhaps via pangolins. Whatever the exact origin and vector, however, the jump from animals to humans fits a familiar pattern, one long understood by epidemiologists.

The destruction of nature by capitalist industry plays a big part. As forests and other areas untouched by human development are destroyed, wild species like bats are forced out to forage for food in urban centers. Those wild species carry diseases that previously remained confined to forests and only rarely infected humans – never enough to cause an epidemic. But now this migrating wildlife comes into more frequent contact with large human populations. Sneezes and droppings from wild animals spread the virus to other animals that humans handle more often – like pigs, chickens or, as with the MERS outbreak in the Middle East a decade ago, camels.

Evolutionary biologist Rob Wallace, author of Big Farms Make Big Flu: Dispatches on Influenza, Agribusiness, and the Nature of Science, is among the writers who for years have warned of the increasing likelihood of such epidemics. On COVID-19 specifically, Wallace and his collaborators emphasize how the wild meat sector fits into the broader context of industrial food production. “How did the exotic food sector arrive”, he asks, “at a standing where it could sell its wares alongside more traditional livestock in the largest market in Wuhan? The animals were not being sold off the back of a truck or in an alleyway”.

Increasingly, according to Wallace, wild food is being integrated into the mainstream of the capitalist food market. “The overlapping economic geography”, he writes, “extends back from the Wuhan market to the hinterlands where exotic and traditional foods are raised by operations bordering the edge of a contracting wilderness. As industrial production encroaches on the last of the forest, wild food operations must cut farther in to raise their delicacies or raid the last stands”.

Right wing news outlets more interested in racist scapegoating than in facts made a big deal of the wild meat issue, as if the world would have been spared the virus if only Chinese consumers had stuck to eating chicken or pork. But that is a false narrative. Since the 1990s, several deadly strains of bird flu and swine flu have developed and spread from industrial farms of chickens or pigs, including in North America and Europe, as well as in China.  

It has long been understood why these places breed disease. The animals are crowded into feedlots under conditions that run down their immune systems. The genetic monoculture of these populations takes away the natural diversity that reduces the prevalence of diseases. As farmers try to minimize time from birth to slaughter, this has the perverse consequence of acting as a natural selection pressure for pathogens that can survive more robust immune systems. All these things mean diseases can spread very fast within industrial herds and flocks. The cost cutting imperative means that work conditions (like protective equipment) are so poor that farm laborers are highly vulnerable to catching viruses from these animals.

The danger to humanity from such practices was reinforced in June, when scientists discovered a number of new strains of swine flu with pandemic potential circulating among pigs on farms in China. Although the strains, collectively referred to as G4 viruses, don’t appear currently to be able to spread between humans, around 10 percent of blood samples taken from farm laborers showed evidence of prior infection. All it would take is a small mutation and one or other of these viruses could start jumping from human to human and spread rapidly through the broader population, just as has occurred with SARS-CoV-2.

Marx and Engels’ groundbreaking work on the relationship between human society and nature in the context of the emergence of capitalism as a global system in the 19th century can help us understand the destructive dynamics underlying these developments. Central to their work in this area was the idea of the “metabolic rift”. All living things have a metabolic relation with their ecological surroundings, taking in certain things and putting out waste. When it comes to humans, Marx and Engels noted that our metabolism with the rest of nature is not due to our biology alone, but also to the kind of society we’ve built. To understand human metabolism with nature, we thus need social science in addition to natural science.

The metabolic rift has both historical and theoretical aspects. On the historical side is the displacement of peasants and peasant farming methods from the countryside, and their corralling into towns to create the modern working class. Workers, unlike the peasantry, had no means of livelihood of their own, and therefore had to move around to find waged work, crowding into the cities where that work was concentrated. One consequence of this was that, instead of being reabsorbed back into the local environment, human waste now collected in vast pools in the cities.

This process was the main driver of the soil fertility crisis that struck Europe in the late 19th century. By displacing the peasantry, and forcing more and more people into the cities, capitalism, Marx wrote, “disturbs the metabolic interaction between man and the earth, i.e. it prevents the return to the soil of its constituent elements consumed by man in the form of food and clothing; hence it hinders the operation of the eternal natural condition for the lasting fertility of the soil”.

What about the theoretical aspect? The rift isn’t just about the natural effects they observed, but also their social cause. It is a rift in social relations: the forcible conversion of a peasantry into the modern working class.

Peasants farmed a plot of land to which they had customary right over generations. They controlled their own labor process, and this meant there was a feedback mechanism between their labor and its effects on the land. If they depleted the soil and thus threatened their livelihood, they could adjust their methods of work accordingly. Peasant farmers had, over many generations, developed practices to maintain soil fertility through crop rotation, cycling between crops and pasture to ensure manuring, and returning human excrement to the fields. Peasant methods of labor were the main factor in the metabolism between feudal society and the rest of nature. Feudal lords would leave peasants to farm as they wished, then take a portion of the produce.

By contrast, the capitalist mode of production involves the capitalist dictating the labor process, and then just hiring laborers to do what they are told. As capitalist farmers emerged, they realized more money was to be made by cutting out the aspects of peasant farming practices that had no immediate pay-off (even though they maintained soil fertility) and focusing just on the highest earning aspects.

Around the same time the first factories were bmetabloismeing established in towns, and the emerging capitalist class and the state that served them realized that wages could be forced down if large masses of former peasants were concentrated in a handful of industrial areas rather than scattered across a large number of small population centers. During the 18th and 19th centuries, vast numbers of peasants were driven from the land by a combination of brute force and legal changes (such as the Enclosure Acts). Out of this uprooted peasantry, the modern working class was born.

A new dynamic began to shape social metabolism with nature. Unlike the peasants who worked the land directly, capitalist farmers and the new captains of industry were far removed from the destructive consequences of their activities. So long as they had workers prepared to exchange their labor for a wage (and the desperate poverty in which most people lived ensured that there was no shortage), they could turn a profit, even if their actions were detrimental to the natural world on which their business ultimately depended. If they destroyed the land, they could use the profits they had made to buy more land elsewhere. More often, however, the destructive consequences of their activities were simply externalized – the poisoning of the air and water in factory districts, which had a major impact on the lives of workers in this period, provides a clear example.

From this point on, what was produced in society and through which methods was determined by the profit motive and competition among rival capitalists and nation-states. The impact of production on the natural world became, at best, an afterthought. A new dynamic was driving society’s metabolism with nature – one that would create environmental disasters on an ever widening scale.

Scientists who study the origins of diseases have been telling us for decades that we will continue to have outbreaks of novel viruses that hop from other animals to humans because of how we farm animals and how we destroy wilderness. This advice is ignored, just as the advice of climate scientists is ignored, because acting on it would require breaking from the profit-driven logic of capitalism.

Where it’s a choice between booking short-term profits and taking a hit to profit to address potentially destructive consequences in the longer term, capitalists will always put profit first. They, after all, can escape the consequences of their actions. They spend their days in air conditioned offices, unlike the farm laborers who spend their days surrounded by hundreds of pigs riddled with swine flu. In a pandemic, capitalists can hide away in their country mansions and, in the event that they fall ill, can pay for the very best of medical care.

For workers it’s a different story. We’re the ones on the front lines of the battle against COVID-19, not through our own free choice, but through economic necessity. For the vast majority of workers around the world, stopping work isn’t an option. We must work to survive, even if in doing so we are actually putting our lives at risk. This suits the capitalists very nicely. The COVID-19 pandemic arrived at a moment when the world economy was already struggling. The ruling class, whether in Australia, the US or any other country, is desperate to limit the economic damage from the crisis, even if that means many more people will die.

If workers ran the world, it would be very different. It would make no sense for us to ignore the warnings of scientists about how industrial agriculture and environmental destruction are fueling the emergence of new diseases, for the simple reason that we’re the ones who will suffer when they appear. We don’t have a stake in the relentless scramble for short-term profit that defines capitalism today. We can organize production – both what we produce and how we produce – with human health and environmental sustainability in mind.

In the current pandemic, that might mean shutting down all but the most essential parts of the economy to slow the spread of the virus, while ensuring other workers are paid to stay home. In the longer term, it would mean reshaping animal agriculture to limit the potential for it to function as a petri dish for the emergence of deadly diseases.

This is how Marx envisaged the metabolic rift being healed. “Freedom in this field”, he wrote in volume 3 of Capital, “can only consist in socialized man, the associated producers, rationally regulating their interchange with nature, bringing it under their common control, instead of being ruled by it as by the blind forces of nature; and achieving this with the least expenditure of energy and under conditions most favorable to, and worthy of, their human nature”.

Such freedom will never exist under a capitalist system in which the drive to profit rules. The first step in fixing the metabolic rift is to make our labor our own again. That means taking it back from the ruling class.

Working From Home: The Silver Lining of the COVID-19 Pandemic

[Image Credit: Alessandro Massimiliano/ Getty Images]

By Cherise Charleswell

During this unprecedented global coronavirus pandemic there has been a great deal of uncertainty, hardships, frustration, and unfortunately – loss of loved ones, so it makes it exceptionally difficult to recognize any positivity during these trying times. As our existence becomes more and more precarious, and it feels like we are failing miserably on this team assignment to combat this virus and slow the spread of infection, I want to point out a sliver of hope, and the silver lining that has come out of this pandemic.

To truly understand what I’m going to share please consider one of the main reasons why the COVID-19 pandemic is unprecedented. This has to do with the fact that we, our global community, all homo sapiens are more connected than we have been during any other time in human history. In a sense, globalization has been completed. We can board a plane and get to the most remote parts of the world within hours, use high speed rail (outside of the United States, of course, because our infrastructure is poorly lacking) and crisscross a country within hours, and there are many far flung Diasporas where certain groups, whether identified by nationality, race, or ethnicity, can be found in parts of the world that is a great distance from their country/region of origin.

And there is no doubt that we’ve benefited from this connectedness.  We’ve benefited in terms of learning about different cultures, tasting and falling in love with various cuisines, establishing meaningful friendships, and we could only hope, that we’ve learned more about tolerance, respect for others, and the importance of upholding human rights across the world.

Unfortunately, at this time, we are losing the Microbial Arms Race, which is a war that began with our early human ancestors and involves a competition between humans and microbes; where microbes are constantly adapting (mutating) to overcome barriers to their ability to infect our bodies. These barriers have include the complexity and evolutionary adaptability of our own immune systems, improved sanitation practices, as well as the use of vaccines and drugs/therapeutics. One of the most well-known “superbugs” is methicillin-resistant Staphylococcus aureus (MRSA), an especially difficult-to-treat variety of the disease-causing bacteria staph. MRSA and other antibiotic-resistant bacteria stand proof that bacteria have learned to outsmart us much faster than we can invent new treatments.

Our current connectedness and exploitation of the planet, uncovering unknown microbes for which we do not have any immunity, only exacerbates the situation, and has helped to fuel this pandemic. And it truly seems like the microbes are winning, as borders are closing – forcing  us to disconnect, and we have to cope with the reality that we are without immunity or any natural defense against COVID-19.

So, where is the silver lining?

It’s faint, but it’s there. And one place to find it, is when we look at the way that “working from home”  or “remotely” has helped to not only transform the lives of workers, and the dynamics of communities, but how this transition has positively impacted the planet.While we spend so much time focused on the microscopic organism and its threat, we must not forget the fact that we all call Earth home, and as Astronomer, cosmologist, astrophysicist, astrobiologist, author, and lecturer Carl Sagan stated, this “Pale Blue Dot” is home to all of us, all life forms, and it is the only place in the known universe that we can inhabit. Unfortunately and despite, knowing that we have no other planet or place to go, we’ve continued to harm and destroy this planet.

Prior to the COVID19 pandemic scientists had estimated that we had only 11 years left (as in until 2030) before we will have to cope with the devastating effects of global warming and climate degradation. Swedish teen activist Greta Thunberg who has been afforded the most attention by the international press, and other young activists, such as Isra Hirsi, Autumn Peltier, Bruno Rodriguez, Helena Gualinga, Mary Copeny, Delaney Reynolds, Kisha Erah Muana, Alexandria Villasenor, Vic Barrett, Katie Eder, have also been beating the drum, demanding climate action, and fighting for their, and our right to have a future. Seriously, as a Millennial, I would like to be able to live into my “Golden Years”!

For the young activists and other people from the Global south, island nations, and other nations at or below sea level, the situation is even more dire. Their lives, and my own family’s lives, will be impacted more greatly; and this includes the complete loss of homeland. Countries such as Kirbati in the South Pacific have actually already begun the process of vacating their island-nation, and re-settling it’s citizens. The worse and most ironic part about all of this is that those living in the Global South and marginalized people all around the world, hold the least responsibility for climate change and environmental degradation.  What is taking place is the result of the actions of people living in the “West”, more affluent nations, and their multinational corporations. These nations have built their wealth off of raping and exploitation of peoples and the very planet that we live on. All for manufactured wealth and profit. Not realizing that our greatest form of wealth has been this planet.

In short, capitalism and hyper-consumerism are leading us to the apocalypse.

So, let’s focus on some of the positive that COVID-19 and the resultant millions of people who no longer commute daily, no longer piling onto congested highways, and instead are working from home has done for the planet:

Internationally, the levels of air pollution has declined since early March when lockdown directives really began to go into effect. This is being tracked and confirmed by the number of nitrogen dioxide (NO2) emissions in the air; with NO2 being a marker of pollution.

The earth has gone quiet! Seismologist and other researchers have reported that there has been a noted drop in seismic noise, which could be the result of transport networks and other human activities being shut down.

More about the environmental benefits here, here, and here.

When you consider all of this it would seem like Mother Earth is healing, and we must really take some time to appreciate the fact, that we are witnessing the reversal of centuries of destruction, in merely a few  months’ time. That this small pause in destructive human activity, is all the earth needed to begin healing again.We must remember this, and realize that we have been presented with a great opportunity, and cannot go back to what we’ve been doing before.

It is no longer about surviving a virus, but surviving as a species, period.

The increase in the number of people working from home globally, has created this silver-lining.

I would like to present Six Shades of Silver to consider. These are the environmental and social benefits of having more people work from home:

1. Environmental Protection: Less traffic, less utilization of gasoline, and a sharp reduction in all forms of commuting has without a doubt provided a benefit to the planet. Also, the fact that the “Outdoors” seem to be the only thing currently accessible “Outside” means that there are more people interested in exploring and preserving national parks, hiking trails, and other natural environments that they may have not visited before.

2. No Bedroom Communities - When one really thinks about it, it didn’t really make any sense to force the majority of workers to pile into their cars, generally head in the same direction, and across overburdened  roads and highways, to join a slow procession of cars; in order to trade their labor for pay/wages. We can immediately do away with the phrase “rush hour” by increasing the number of remote workers.

   With remote work, more workers could opt to move away from over crowded urban centers and this may offer the benefit of not only improving quality of life, but may help to reduce homelessness, particularly in urban areas, where many find themselves residing in because of the proximity to jobs. Leaving housing in these areas, such as San Francisco, Los Angeles, New York, Boston, Washington D. C. limited and thus unaffordable.

   Let’s talk more about the lives of people who would no longer have to live in “bedroom communities” and who would instead be able to live in affordable, less congested, greener, and thriving communities that are located at a distance from urban centers. Rather than awaking at some ridiculous time in the morning in order to sit for an hour or more in traffic, and essentially abandon their communities until nightfall. These workers will have an opportunity to be active members of their communities and these communities won’t be deserted towns for most of the day.

   Non-commuting workers would have more time to spend with their children and families, to get out-and-about in their neighborhood, take a walk along a trail (a physical and mental health benefit that can increase longevity), prepare nutritious meals for breakfast and lunch rather than relying on eating snacks, junk food, and fast-food in a hurry at their desk or in their car during their commute. And working in the community that one lives means that there is a greater  opportunity to build bonds with neighbors and patronize local businesses. Retaining the workers who are often gone for 10-12 hours a day, 5 days a week, means that these communities will truly be able to “come to life”.

3. Less Office Space/More Affordable Housing: Homelessness is a manufactured phenomenon. One that is brought about by accepted socioeconomic & political systems, such as capitalism, policies, and social norms. There is truly enough “room” or space to effectively provide shelter to all people on this planet. We simply do not do so, because we place more value on land and land use than we do on lives. This is why it is not uncommon to find buildings, houses, and other housing units sitting unoccupied in cities that have extreme problems with homelessness.

   Homelessness and poverty are inextricably linked. Poor people are frequently unable to pay for housing, food, childcare, utilities (heating & electricity) health care, and education. Leaving them with difficult choices to make when limited resources cover only some of these necessities. Often it is housing, which absorbs a high proportion of income that must be dropped. If you are poor, you are essentially an illness, an accident, a paycheck, and now a pandemic away from living on the streets.

   With the mass loss of jobs and the resultant unemployment and underemployment of workers, the COVID-19 pandemic is providing an opportunity to re-think, or finally admit that there is a problem in believing that some people are more deserving of housing than others. As we talk about stopping evictions of workers and business owners, we should also consider those who were not only evicted, but forced out of their homes due to increasing economic inequity and poverty and the lack of affordable housing prior to the COVID-19 pandemic. The current alarming rates of homelessness that we see with 2019 estimates being that 567,715 Americans experience homelessness on a single  night, have been growing over the past 40 years, and has been tied to the erosion of the  middle class, the massive transfer of wealth from workers to the 1%,  economic inequity - with 20% of families making more than half of all U.S. income, stagnant wages, and the exponential  growth in the cost of housing. Reagan’s trickle down economy was a trick, and no one knows  this more than those of us born during and after the Reagan era. We are the first generation in  American history to have a quality of life that is far worse off than the previous generation.

   With an increase in the number of workers working from  home, we can begin considering converting office spaces to residential use, and/or halting the  development of even more office buildings, and focus on building more affordable housing.  Further, “affordable” housing shouldn’t be something that is made available to workers living  well below the poverty line. We need to think of affordable housing in terms of something that  is accessible to the average worker. So, it is not about creating a program, checking eligibility,  and having social workers visit families placed in affordable units, its more about having enough  available units and homes that can be afforded by (meaning not costing more than 30-40% of  their salary) people making the median salary/wage in a city or county. “Affordable housing” truly needs to signify being able to afford to pay the rent or mortgage on a home based on one’s current wages.

4. Families and Childcare: While most women are active members of the global workforce. Out of the world’s 197 countries, the United States and Papua New Guinea are the only countries that have no federally mandated policy to provide new mothers with paid time off. Policies, provision, and management of maternity leave is left up to states and individual employers. And the time off provided to expectant and new mothers in the United States pales in comparison to maternity leave in other countries. For example, in the “progressive” state of California, mothers can typically take up 12 weeks to bond with their child; and are expected to return back to work while their child is still an infant. In the United States paternity leave is nonexistent and quality childcare is extremely expensive.

   Remote work can decrease or eliminate these financial and logistical burdens for families, and allow time for more critical bonding between parent and child(ren). This is especially true when you consider getting back all of the time loss to commuting, which often leaves parents and their children with very limited time to actually interact before bedtime and preparation for the next day. Flexible work from home schedules means that parents can begin working earlier in the day, resume work later in the evening, or even take off a Wednesday, and catch up on work on a Sunday. The silver-lining is that working parents do not have to choose between being professionals, breadwinners, and having a presence in their child(ren)’s lives.

5. Less Commuting, Coworkers Coughing, & the Potential To Contract Communicable Diseases: We all have our “war stories” where we arm ourselves with lysol, sanitizer, tissue boxes, etc. and enter our places of work, knowing that there would be many sick and infectious people passing by and working in close proximity. We avoid shaking hands, ask people not to use the phones on our desks, and begin to bob-and-weave the minute that we hear someone coughing. And we did all of this long before COVID-19. We did this because we knew that entering our crowded workplaces, particularly office buildings & warehouses where windows don’t open, and doors remain close for the most of the day, meant that it was likely for us to contract a disease, whether it be the common cold, flu; or more serious diseases such as meningitis or tuberculosis; which can readily spread in a workplace setting.Therefore, there can only be a benefit of decrease interactions with coworkers, collaborators, clients, and others; particularly during Flu season.

6. Improved Work-Life Balance: Working from home not only allows a worker to save money, due to less of a need for gasoline or eating out for lunch, it further improves the work-life balance by providing workers more time for their families, for themselves, for rest (sleeping in rather than having to rush to catch a bus, train, or battle traffic), to workout, do yoga, meditate, and cook healthy meals. It allows them to actively implement self care into their daily routine rather than make it something that has to be planned for and scheduled by appointment. Far more can be accomplished when preparing for work, going to work, and actually working doesn’t take up 40-50% of the day or a 24 hours period.

The Need To Transform The Workplace

The COVID-19 pandemic has made, or should’ve made it clear to many employers that their businesses and/or organizations can continue to operate with their workers or most of their workers working remotely. This is why the job advertisements that state “temporary remote” really are nonsensical. If that position can be carried out by a remote worker for the unforeseeable future, as we wait for this pandemic to wane, why should the worker in that position return to working onsite?

Employers have to get out of the outdated view of employees as children who need to be micromanaged by babysitters (managers and supervisors) who glare at them through their office windows or as they sit in crammed cubicles. This need to supervise not only the output of workers, but also their movement, truly harkens back to the practice of blocking exits that was once utilized in the workplace prior to the infamous Triangle Shirtwaist Factory fire that took place in Manhattan’s Greenwich Village in 1911. On that day 150 garment workers who were mostly women and immigrants were trapped and killed when the building caught fire, and all exits remained blocked. A number of the women were photographed as they attempted to flee the building by jumping through the windows, and falling to their death. This horrific incident was witnessed by Frances Perkins, a sociologist, workers-rights advocate and the first women to be appointed to the U.S. Cabinet; where she served as the Secretary of Labor from 1933 to 1945, under President Theodore Roosevelt. Frances championed the cause of The Fair Labor Standards Act of 1938. The FLSA required that employers pay overtime to all employees who worked more than 44 hours a week, and by 1940 the 40-hour work week became U.S. law.

Henry Ford and his Ford Motor Company actually began popularizing the 40-hour work week prior to this landmark legislation, in 1914, after research confirmed his belief that working more yielded only a small increase in productivity that lasted a short period of time; hence too many hours of work were bad for worker’s productivity and a company’s profitability. 

When it comes to this continued need or desire to “babysit” that some employers have, one has to ask - Why go through the process of searching for the best educated, experienced, and professional job candidates, if you are going to treat them like children who are unable to set priorities and manage their own schedules?

We are long overdue for a Labor revolution, and the COVID-19 pandemic has only helped to illuminate this fact. It has forced us to rethink where, how, and when we work; as well as what & how much we are willing to sacrifice when we trade our time for wages. We should take the opportunity presented by the pandemic to make changes that match the current needs, lifestyle, and realities of the 21st century worker. The re-establishment and/or support of labor unions will be needed to usher in this change.

Transitioning workers whose jobs are performed in an office setting, using a computer, etc. to remote workers, should be a part of this Labor revolution. Remote work provides the opportunity to shift the focus of work from the amount of time dedicated to work, to confirming whether tasks and assignments are completed. With task-based work, workers are provided with far more flexibility and freedoms; especially since there is less emphasis on the time of day, or days that they work. And this is something that employers really need to consider, because forcing people to sit at a desk for 8 consecutive hours does not guarantee that they are going to spend all of that time working. Instead, they are likely to attempt to get other things accomplished during that time, whether it is taking an extending lunch in order to make a medical appointment, checking personal emails, responding to texts from family and friends, surfing social media, paying their bills online, getting caught up on gossip near a water cooler, or taking multiple informal breaks to grab coffee or tea, walk, stretch, and think; because it is truly difficult for human beings to sit still and stare at a screen for long periods.

Our bodies didn’t evolve to sustain this sedentary lifestyle. All of this again, makes the focus on how worker’s spend their time futile, and far from a true measure of productivity.

A 2014 report from AtTask shared the following response from 268 workers about how they typically spent their 8-hour work days:

• 45% of the time was spent on primary job duties

• 40% of the time was spent on meetings, administrative tasks, and “interruptions”

• 14% of the time was spent responding to emails

Remote Work Also Offers Benefits To Employers

Here is a short list of benefits of remote work that employers should take the time to contemplate:

1. Research has shown that engaged remote workers are more productive. And this productivity could also be contributed to having a healthier workforce where worker’s had more time for physical activity and where there were no concerns about spread of infectious agents, resulting in many workers having to take sick days.

2. There are obvious cost-saving benefits to having employees work from home, and this includes less overheard expenses in form of office space leases, furniture, security, as well as utility costs. Outside of payroll and fringe benefits the other major expenses would only be providing employees with technology (computers, printers, web conference logins, etc.) and supplies to utilize at home to perform their jobs.

3. Meetings would be fewer, shorter, and more meaningful. In person meetings tend to involve lots of casual banter, and may be used by people to lodge complaints and personal grievances that only involve few people in the meeting. When it comes to remote meetings, there is more of a desire and incentive to use the allocated time more wisely, which means stay on task and get through the agenda. There are already jokes about being “Zoomed out”, and this has led to more focused meanings and less frequent meetings. And remote work doesn’t have to mean the end of in person meetings, in a post-covid world, these types of meetings could always be arranged at local restaurants, cafes, coffee shops, or even in rental office and co-working  spaces; book through sites such as peerspace.com, easyoffice.com, or liquidspace.com.

4. Employers will be able to use the cost savings to reinvest in the company, expand the organization and increase capacity, maximize profits, or increase employee salaries in order to retain the most productive and effective workers, but also attract additional talent.

5. With remote work, employers can literally cast their nets wider and further, and tap into a larger pool of talented, educated, and experienced job candidates, rather than being limited by geographic location. More about how remote work attracts and retains top talent here.

The Reality

Our professions are greatly varied, so the reality is that not all workers will be able to transition to remote work, and this includes those deemed to be essential workers - who work in health care, agriculture, food service (especially supermarkets), law enforcement, fire, and first responders, construction workers, entertainers and athletes, and those working in human services; as well as workers in the service industries - cosmetologists, barbers, masseuses, and so on.

However, the COVID-19 pandemic has proven that many jobs can transition to a remote model quickly and efficiently , and these are the positions that we should focus on, because there are great benefits to the planet, to individual workers, to families, to communities, and even the companies when these workers stay home.

Finally, the best way to be prepared for and combat the next pandemic, or ensure that our planet remains habitable to human life, is by embarking on this radical change to the “workplace”. Like that of the early 20th Century, The 21st Century Labor Revolution is a matter of life and death.

Let’s stay home.

Cherise Charleswell is an unapologetic Black feminist, author/writer, poet, public health researcher/practitioner, radio personality, social critic, political commentator, independent scholar, activist, entrepreneur, and model who doesn’t believe in thinking or staying in one box. She is also a Founding member of The Hampton Institute and remains in an Advisory position. Her work has been published in various magazines, textbooks and  anthologies, websites, and academic journals; including The Hampton Institute: A Working Class Think Tank, New Politics, For Harriet, Black Women Unchecked, Zocalo The Public Square, Truth Out, Rewind & Come Again, Natural Woman Magazine, Kamoy Magazine, New Republic, Blue Stocking Magazine, Broad A Feminist & Social Justice Magazine, Obsidian Magazine, AWID Young Feminist Wire, Afro City Magazine, Role Reboot, Code Red for Gender Justice, Kalyani Magazine, Interviewing The Caribbean, TruthOut, Our Legacy Magazine, and Rival Magazine Los Angeles.

Cherise is of West Indian descent, with heritage from various Caribbean islands, & is an avid world traveler, visiting over 30 countries and counting. She can’t wait for Da’ Rona to go away so she can get back to traveling.

Firm Level Price Determination: A Comparison of Theories (Perfect Competition, Imperfect Competition, and the Theory of Real Competition)

By Ezra Pugh

“The best of all monopoly profits is a peaceful life,” (John Hicks, 1935).

“The division of labor within society brings into contact independent producers of commodities, who acknowledge no authority other than that of competition…the ‘war of all against all,’”      (Karl Marx, 1867)

George Stigler defines the term competition as “the absence of monopoly power in a market,” (Stigler 1957, 14). This could seem a curiously narrow definition to the businessperson or the worker. But this notion has been ubiquitous in the teaching of economics for decades. It originates, of course, from the Neo-Classical theory of perfect competition. Abstraction is necessary to any theoretical investigation. Assumptions must be made for the purpose of conducting analysis. But in flattening the meaning of a term like competition in such a way, is there a risk that some essential insights may be lost?

Perfect Competition

Perfect competition is the foundational parable of orthodox economics. A perfectly competitive market is an abstract ideal with a number of specific attributes:

•          There is a very large number of firms, such that no single firm can affect the overall market for its product.

•          There is a very large number of buyers for the industry’s product.

•          Each firm produces exactly the same undifferentiated product.

•          Firms, and their consumers, have perfect knowledge of all relevant economic information related to their industry and its product.

•          Firms have unrestricted power of entry and exit in their industry.

•          Firms are entitled to a ‘normal rate’ of profit, which is included in its operations costs.

• ·         Marginal costs drop at first then eventually increase with each unit sold. As a result, average cost is also upward sloping.

From its perspective, a firm in perfect competition is just a speck, dwarfed by the size of the market it competes in. The market can absorb whatever the firm can produce, provided it is sold at market price. The firm’s perceived demand curve is horizontal, or perfectly elastic. As a result, the demand curve is identical to its supply curve. The overall demand curve of the market, however, is downward sloping.

The firm must accept the prevailing market selling price for its good. If it sets its price above the prevailing price, even by an iota, the firm will lose all of its sales to the myriad other sellers. If it sets its price below, it will not be able to make enough profit to survive. A firm in a perfectly competitive market is therefore known as a price-taker, as it is powerless in the face of market pressures. Consequently, “a perfectly competitive firm has only one major decision to make—namely, what quantity to produce,” (Greenlaw 2018, 189).

Being rational, the firm’s motivating goal is to generate profit. Its profit (r), is defined as total revenue (TR) minus total cost (TC). Total revenue is made up on the products price (P) multiplied by the quantity produced (Q) minus the average cost per unit (AC) multiplied by the quantity produced. This can be written as:

To maximize its profit, the firm must continue producing more output up until the point its marginal revenue equals its marginal cost – the point where an additional unit of output contributes no more profit. Marginal revenue (MR) and marginal cost (MC) are defined thus:

Because the market price the firm experiences does not change based on its output, the firm’s marginal revenue is a constant. Each additional unit sold adds the same value, which is equal to the price of the product. If marginal revenue is equal to price, and profit maximization occurs when marginal revenue equals marginal cost, the firm should produce up until the point where its marginal costs equals the price of its product.

The firm’s average cost is its total cost divided by quantity produced, and is assumed to initially fall then eventually be upward sloping. Because innumerable sellers all sell the same good, in the long run (which generally does not have a specific definition), all ‘economic’ profits—those which are above the assumed ‘normal’ profits—are eventually eroded completely away. If positive economic profits existed, more firms would enter the market, increasing supply and lowering price. If economic profits are negative, firms would leave the market, causing the opposite effect. As a result, in the long run perfect competition causes sellers to produce their goods at the lowest point on their average cost curve.

“When profit-maximizing firms in perfectly competitive markets combine with utility-maximizing consumers, something remarkable happens,” we are told, “the resulting quantities of outputs of goods and services demonstrate both productive and allocative efficiency,” (Greenlaw 2018, 206). Productive efficiency is attained because in the long run, firms produce at their absolute lowest cost. Allocative efficiency is achieved because the resulting goods’ price is equal to its marginal cost—precisely the value of the ‘social cost’ of producing it.

Imperfect Competition and Monopoly

But of course, this state of affairs does not resemble the world in which we live. This utopian optimality, we are told, is distorted and mutated by the anti-competitive behavior of firms and government. Due to that meddling, we live in a world of imperfect competition—monopoly, monopolistic competition, and oligopoly. Paradise lost. In monopoly, a firm is the lone provider of a good, in monopolistic competition many firms produce differentiated products, and in oligopoly a small cabal of firms control the marketplace and exert price pressure.

The culprit which creates each of these distorted market types is barriers to entry. Whether natural or legal, barriers to entry prevent firms who would otherwise enter a market from entering. The few firms which are active in the market have control of too large a slice. As a result, they can affect the market price based on how many units they produce. Instead of a horizontal perceived demand curve, the firms in imperfect competition face a downward sloping demand curve.

To maximize its profit, the imperfectly competitive firm still produces at the level where MR = MC. But because of its outsized effect on the market, P no longer equals MR. With each unit produced, the increased supply exerts downward pressure on the price, which effects the price of all other units produced by the same amount. If such a firm produces too much, it can hurt its own bottom line. Because it supplies as much as it wants and not what consumers want, a true monopoly will have perpetual positive economic profits at a level which depends on the elasticity of the product’s demand schedule. Monopolistic competition, however, will in the long run result in a total erosion of economic profit as firms enter the market, all producing at a point on the AC curve, albeit not at its minimum point. As a result, none of these markets is productively or allocatively efficient. The amount of goods produced is below what consumers would have wanted under perfectly competitive conditions, they are more expensive than they are socially worth, and firms inefficiently do not produce at their minimum average cost. Customers are robbed of potential utility. Such markets are sadly the norm, because, we are told, “firms have proved to be highly creative in inventing business practices that discourage competition,” (Greenlaw 2018, 220). This is a great state of affairs for the firms, however, because “once barriers are erected, once a barrier to entry is in place, a monopoly that does not need to fear competition can just produce the same old products in the same old way,” (Greenlaw 2018, 229). Managers can kick back and watch the profits roll in.

Historical Overview

Sketched out above is the dominant parable in economic thought and teaching. Interestingly, almost none of this resembles the real world. How did we get here? An outline is sketched below.

Adam Smith is generally credited with establishing economic thought, or Political Economy, as a distinct field of study. His work An Inquiry into the Nature and Causes of the Wealth of Nations (1776) is regarded as the first modern work of economics. A key figure in the Scottish Enlightenment, Smith was interested in observing economic phenomena, describing them, and discovering the hidden patterns within. David Ricardo furthered and built on Smith’s ideas, advancing theories on rent, trade, and value. Over the course of the three volumes of Capital (1867), Karl Marx extended this theoretical framework even further with sharpened historical and class analysis, building a signature value theory in the process. Along with others, these thinkers are referred to as the Classical economists.

But in the 1870’s there occurred what is known as the Marginalist Revolution. The Long Depression (1873-96) caused a crisis of confidence in the capitalist world. Interestingly, it was during this period that the most utopian theoretical depictions of capitalism were popularized. W.S. Jevons (1871), Carl Menger (1871), and Leon Walras (1874) independently and almost simultaneously developed this new theoretical paradigm. They perceived fundamental flaws in the theoretical framework and methodologies of the Classical economists and sought to “pick up the fragments of a shattered science and to start anew,” (Jevons 1879/1965, Preface lii). The Classicals believed that the ultimate source of an item’s value was the amount of labor embodied in it and that market prices were connected to costs—prices of production. The Marginalists vehemently disagreed. “Value,” wrote Jevons, “depends entirely upon utility” (Jevons 1871/1965, 1). Echoing this sentiment, Menger wrote “there is no necessary and direct connection between the value of a good and whether, or in what quantities, labour and other goods of higher order were applied to its production” (Menger 1871/2007, 146). Value then stemmed from a buyers utility gained from a good; that utility being an index of the good’s scarcity.

Jevons and Walras both used advanced mathematics to express their ideas. Adopting algebra and calculus, they could express complex ideas with greater accuracy than was possible previously. "Why should we persist in using everyday language to explain things in the cumbersome and incorrect way, as Ricardo has often done,” wrote Walras, “when these things can be stated far more succinctly, precisely, and clearly in the language of mathematics?" (Heilbroner 1997, 226). Walras pioneered what is known as general equilibrium theory—the notion that a complex balance of supply and demand can exist in and between markets.

It is during this period that supply and demand curves and the modern theory of perfect competition are introduced. In order to make their highly abstract models functional and defined, economists had to make assumptions that did not necessarily fit with, and often outright contradicted economic reality. "The pure theory of economics, it must precede applied economics,” wrote Walras, “and this pure theory of economics is a science which resembles the physic-mathematical sciences in every respect," (Heilbroner, 224). Actual people and actual societies faded from the picture in favor of platonic ideals. This fundamental methodological shift opened up many new avenues of exploration for economists, but the descriptive and predictive usefulness of the new models was not necessarily clear. Perfect competition became the theoretical jumping off point for all ‘rigorous’ analysis, and Marshall (1890) systematized the theoretical structure into what would recognize as modern Neo-classical economics. Dobb notes, "at the purely formal level, there can be little doubt that the new context and methods, with their mathematical analogy if not mathematical form, resulted in enhanced precision and rigor of analysis…the cutting knives of economic discussion became sharper -- whether they were used to cut so deeply is another matter" (Dobb 1973, 176).

In the 1920s, unease with the dominance of perfect competition was growing. Sraffa (1925) aimed a potentially devastating critique at the then-dominant Marshallian partial equilibrium theory, demonstrating that the theoretical structure was not capable of dealing with non-constant returns (increasing or decreasing costs) adequately (Mongiovi 1996). The next year, Sraffa (1926) suggested a solution might be found using the lesser utilized monopoly theory as a starting point. Even in competitive markets, monopolistic tendencies could easily be observed because 1.) firms can exert some control over their own prices, and 2.) they frequently experience increasing returns (decreasing costs). Sraffa argued that these circumstances are not the exception, “rather they are normal and persistent features of the economic landscape, with 'permanent and even cumulative' consequences for market equilibria. When these influences are operative, each firm is to be viewed as having its own distinct market; prices are set so as to maximise profits on the supposition that the relevant demand curve is not perfectly elastic,” (Mongiovi 1996, 214). Building on these ideas, Robinson (1933) and Chamberlain (1933) independently, but simultaneously, developed the theory of imperfect competition that is taught today. Eventually abandoning Marshallian theory altogether, Sraffa’s publication of Production of Commodities by Means of Commodities (1960) is credited with establishing a distinctive Sraffian or Neo-Ricardian school.

Real Competition

In Capitalism: Competition, Conflict, Crises (2016), Anwar Shaikh erects a theoretical framework independent of perfect and imperfect competition. Formalizing insights developed by the Classical economists, a theory is built which is both analytically sound and corresponds to observed economic phenomena. The theory of real competition, as it is called, “is as different from so-called perfect competition as war is from ballet,” (Shaikh 2016, Ch. 7.I.). The classical economists stressed themes that were either diminished or omitted completely by Neo-classical economists, including conflict, class, and temporality. In Capital, Volume 1, Karl Marx writes that the economic realm is bellum omnium contra omnes, ‘war of all against all,’ (Marx 1867/1990, 477). All evidence of this is lost in the parables of perfect and imperfect competition. But in Capitalism, the theory of real competition “pits seller against seller, seller against buyer, and buyer against buyer. It pits capital against capital, capital against labor, and labor against labor,” (Shaikh 2016, Ch. 7.I.). Abstracting away from the essentiality of conflict to capitalist production and distribution makes Neo-Classical analysis not only unrealistic, but totally misleading.

But even on pure theoretical grounds there are issues with the theory of perfect competition. For one, there is a fundamental contradiction within the assumptions. Firms are assumed to have perfect knowledge of the market in which they are competing, yet their perceived demand curve is assumed to be flat. These two assumptions cannot hold at the same time. “If firms are assumed to be sensible in their expectations, then the theory of perfect competition collapses. More generally, even mildly informed firms would have to recognize that they face downward sloping demand curves under competitive conditions,” (Shaikh 2016, Ch. 8.I). If a firm in a perfectly competitive market has perfect knowledge, it would quite easily deduce that the market signals it is receiving are being received by every other firm, and those firms will react in a predictable manner. As a result, the firm would know that it does not face a flat, perfectly elastic demand curve, and would act in exactly the same manner as a monopolistic firm, with just the same results.

Another problematic assumption within the orthodox framework is that firms are entitled to a normal rate of profit, which is included within its cost structure. The action of competition completely erodes excess profits away but leaves normal profits intact. This, of course, is wildly unrealistic because “no capital is assured of any profit at all, let alone the “normal” rate of profit. Indeed, all capitals face losses at some point, and a certain number drown in red ink in every given interval. It is therefore completely illegitimate to count “normal profit” as part of operating costs,” (Shaikh 2016, Ch. 7.I.). The prospect of making a loss is the dark cloud that hangs over every business manager, driving them unceasingly into conflict with agents both inside and outside the firm. Abstracting away from this motive force fundamentally misdiagnoses the motivations of economic agents.

In the theory of perfect competition, a firm’s only decision is how much to produce. Likewise, in imperfect competition, pricing and quantity decisions are mechanically connected. But in the works of the Classicals and in the theory of real competition, firms are active price setting, cost cutting entities. Neo-Classical theory stresses that firms will flock to higher profit rates at a given price. But once firms have the power to set their own price, the picture becomes more complicated. In their endless search for higher rates of return, firms cut prices to attract more buyers and increase market-share. In the process, “the advantage in this perpetual jousting for market share goes to the firms with the lowest cost,” (Shaikh 2016, 7.II.). If firms have the power to cut their own prices, they have the power to starve out other firms—even ones that are potentially more profitable at initial prices. Neo-Classical theory stresses that firms will adopt whatever method yields the highest profit at a given price, but “when costs differ, there is always a set of prices at which the lower cost firm has the higher profit rate. This does not mean that [it] has to drive the price down to that level. It has only to get the message across to its competitor that the future has arrived,” (Shaikh 2016, 7.VII.). This is demonstrated in Table 1 below. Pricing wars, which are extremely common occurrences in the real economy, highlight the conflictual nature of economic relations—"these are the operative principles of warfare: attackers try to impose greater losses on the other side. We will see that such behavior is the norm in the business world. It follows that the highest profit that is sustainable in the face of price-cutting behavior is generally different from the price-passive profit assumed in theories of perfect and imperfect competition,” (Shaikh 2016, 7.II.). Only the theory of real competition deals with this common behavior adequately.

Conclusion

Contrary to Hicks’ assertion, a peaceful life is not included in a firm’s profit—no matter their degree of monopoly. There is perpetual conflict generated both inside and outside of the firm that must always be contended with. For real firms, “price is their weapon, advertising their propaganda, the local Chamber of Commerce their house of worship, and profit their supreme deity,” (Shaikh 2016, 7.II.). Abstraction is a necessary tool for analysis. But the specific method of abstraction used in the theories of perfect and imperfect competition does not serve to elucidate truths that would be otherwise unattainable. Neo-Classical economics was formulated during a crisis of capitalism to create a utopian vision in order to justify capitalist social relations. Capitalist relations have been shown to be the most powerful and productive in history, but that does not justify obscuring their fundamentally destructive and chaotic elements. Competition is not merely the absence of monopoly power—it is the struggle of all against all.

References

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Cohen, A. J., & Harcourt, G. C. (2003). Retrospectives: Whatever Happened to the Cambridge Capital Theory Controversies? Journal of Economic Perspectives, 17(1), 199–214. doi: 10.1257/089533003321165010

Greenlaw, S. A., Taylor, T., & Shapiro, D. (2018). Principles of Microeconomics. Houston, TX: OpenStax, Rice University.

Heilbroner, R. L. (1997). Teachings from the Worldly Philosophy. New York: W.W. Norton.

Hicks, J. (1935). Annual Survey of Economic Theory: The Theory of Monopoly. Econometrica, 3(1), 1-20. doi:10.2307/1907343

Jevons, W. S. (1965). The Theory of Political Economy (5th ed.). New York, Ny: Augustus M Kelley.

Marx, K., Fowkes, B., & Fernbach, D. (1990). Capital: a Critique of Political Economy; vol.1. London New York, N.Y: Penguin Books in association with New Left Review.

Menger, C. (2007). Principles of Economics. Auburn: Ludwig von Mises Institute.

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Sen, A. K. (1977). Rational Fools: A Critique of the Behavioral Foundations of Economic Theory. Philosophy and Public Affairs, 6(4).

Shaikh, A. (2016). Capitalism: Competition, Conflict, Crises [Kindle version]. New York: Oxford University Press.

Smith, A., Heilbroner, R. L., Malone, L. J., Smith, A., & Smith, A. (1987). The Essential Adam Smith. New York: W.W. Norton.

Sraffa, P. (1926). The Laws of Returns under Competitive Conditions. The Economic Journal, 36(144), 535. doi: 10.2307/2959866

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Stigler, G. J. (1957). Perfect Competition, Historically Contemplated. Journal of Political Economy, 65(1), 1–17. doi: 10.1086/257878

Well, What Are Y'all Going To Do Then?

By Mack

On Tuesday, August 11, 2020, democratic presidential nominee Joe Biden, announced his VP pick, Kamala Harris, to a flurry of mixed reactions online. As with all events that make up the political theatre typically observed in our country, there were corners of praise and corners of dissent. On one hand, Harris’ nomination symbolizes a potential historic “first” for Black and South Asian women in the US. It’s an opportunity to be represented in the second highest office in the world. But for many like myself, the optics are totally overshadowed by the bleak reality of electing the white supremacist, grandfather of mass incarceration, and a woman who has unironically self identified as California’s “top cop”.

Under a true democracy, people should be allowed to ask questions. Under a true democracy, people should be allowed space for criticism and dissent. But in the illusion of a democracy that we find ourselves under in the so called united states, where elections cost millions of dollars to participate in, where all parties besides two are rendered virtually invisible, and where the two visible parties pull strings behind the scenes to usher forward uninspiring candidates, dissent is often viewed as life-threatening. We are taught that democracy should be free, but every four years the american people are held at gunpoint and forced to make a decision. Every election becomes “the most important election of our lifetime”.

When those among us who choose to dissent speak up, we are often met with a few similar retorts. They don’t vary much, but one that we can constantly depend on is, “So what do you want me to do then?” I want to recognize that often this question is asked from a genuine place. When you are held politically hostage the way we continue to be in this country, we find ourselves destitute and miseducated. People’s concerns about the future are real.

But more often than not, “So what do you want me to do then?” is a question asked in bad faith, particularly to leftists, people who identify as communists, socialists, anarchists, or any other faction of the true left, who, after lifetimes of study and lived experience, have decided to opt out of the dog and pony show that is american electoral politics. It’s a question asked to invoke shame. To suggest that we are the true failure of this country. To remind us that if we just took this thing a little more seriously, maybe we’d all be in a better place. This question often leads to arguments that don’t go anywhere and don’t yield any solutions. This question only serves to further isolate the people.

I do not like being asked this question, because I believe that most people who ask it, do not want the answer, and most certainly will not like mine. But for the last time, here, I will answer it: I don’t want you to do anything. I literally just want you to stop. I want you to read. I want you to listen. And then, and only then, do I want you to act.

The big issue with being socialized in a patriarchal society, which is to say, a society governed by and constructed in the benefit of men, is that solutions are constantly valued over concrete analysis. We continue to leap for solutions to problems that we do not fully understand. And that is why we continue to find ourselves repeating the same mistakes and asking the same questions (read: “So what do you want me to do then?”) over and over again. Before asking this question, understand that you need new tools. You need a new framework from which to understand the world around you.

Marxists value a process known as dialectical materialism. What dialectical materialism allows us to do is to step back from the noise— the non-stop hysteria on TV and the bought-and-paid-for political chatter, and actually evaluate the material conditions around us. Dialectical materialism reminds us that almost everything in life can be explained when you look at real world conditions and apply the context of history. It asks us to sit with the history of our world, and evaluate the contradictions that come up in our society. A person constantly asking “So what do you want me to do then?” is very far removed from this crucial process of interrogation. And what I need you to do is unplug from the theatre and join me in struggle and in material evaluation. In essence, I need you to take a break from being condescending as I invite you into the thought exercise of a lifetime.

“So what do we do then?” To tell you the truth, it would actually be great if you commit to coming back into the streets with us. I want you to stop ignoring houseless people in your own community. I want you to give them money and food and clothes every chance you get. I want you to band together with your friends and figure out ways to get them off the streets permanently. And I want you to study the history of houselesnees in your city. Why are so many people without homes where you live, while so many homes sit empty? What are your local politicians doing to address it and what’s taking them so long? I want you to get so angry about that, that you do something.

“So what do we do then?” To be really honest with you, there are likely hundreds or thousands of people where you live who have been laid off. I think it would be great if you got organized in your city and learned how to do an eviction blockade. Because people are about to get evicted. Bonus point: it would be really awesome if you have a home that someone who’s getting evicted could live in while they work to sort out their life. I’d love it if we stopped shaming people who are receiving the extra $600 a week in unemployment benefits. I’d like it if you developed a better class analysis and stopped going to war with people who share similar material interests as you on behalf of the ruling class. We all deserve more. I want you to get so angry about that, that you do something.

“So what do we do then?” I want you to figure out what resources the elderly in your community need access to. Can you help someone do some grocery shopping? Is an elder struggling to afford prescriptions? As it stands, no one running for office in this country is interested in even discussing universal healthcare. Perhaps you can help an elder pay for their meds? Maybe do some crowdfunding to help them afford them? What about the single parent households where you live? Will you be a resource to those who are about to struggle with starting virtual learning in the fall? Can you talk to them and find out what they need? Can you and a group of your friends mobilize around that? I want y'all to get so angry about what’s about to happen, that you do something.

“So what do we do then?” Well, right now we’re living through a moment where more people than ever are ready to explore getting rid of one of the deadliest forces in our country: the police. At this moment, Harris wants to “reimagine” them, an exercise we’ve done before with no result, and Biden wants more of them. It’s likely that with the current presence of police, your community already isn’t safe. Are you a cishet man? If so, you should be talking with other cishet men about the ways in which women and LGBTQ+ folks in your community are not safe and may require protection. Can you organize a system of protection for people harmed in your community, and a system of accountability and restoration for those who do harm? Are you trying to put ego aside and unlearn so much of the toxicity that persists in our society? For everyone else, will you organize with folks around you on ways to divest from violence and punishment? It would be dope if you could have a conversation or two about how your community wants to handle interpersonal conflict. I think it would be great if we all took some time to think about how we model ideas like abolition in our everyday lives. I want us to get so mad about this shit, that we do something about it.

“So what do we do then?” I want you to develop a better analysis of the country you live in and begin to engage it in a more ethical way. I want you to really process what it means to live at the heart of the US empire. I want you to not be ok with disposing of the lives of Black and Brown people in the global south on the premise of representation. Change.org petitions aren’t cutting it anymore. I want you to interrogate why you even want to be represented as the face of the death machine that is the united states. No more Black Panther cosplay until you understand the politic that set them on fire. I want you to be pissed off about the fact that you’ve never participated in a truly democratic election in your entire life. I want you to get angry about the electoral college. I want you to stop hypothetically asking me “So what are you going to do then?”, and maybe ask yourself what YOU are going to do in the event that November 2020 ends up being just like November 2016— a scenario where your favorite war criminal wins the popular vote, but still loses the election.

What a proper analysis of our situation tells us is that we did not get here by some slip of a lever. Nothing about our current situation is by mistake. The path that we continue to go down is totally predictable, in fact, people have been theorizing our current reality for decades. What a proper analysis tells us, is that if we don’t completely halt and bring the US empire to its knees, it is going to swallow the rest of the world, and when it’s done, it’s going to cannibalize itself. What it tells us is that until we wake up and stop feeding the machine, nothing is going to change. The only realistic and material way to stop this, is to start building a new world from the ground up. First, with ourselves, and then in our communities.

Via electoralism, we are being continuously asked to feed into our own demise. And no matter how much people claim “we can do both”, history shows us that until we don’t, by and large we continue to rely on elections to solve our societal problems. But no matter who sits at the helm, the machine is never going to slow,  turn around, or stop. The only path this machine is taking, is forward. So please don’t treat questions like “So what do we do then?” like big jokers in a game of spades. Before asking “What are yall going to do then?” or “What are the alternatives?” understand that those who fully understand the problem aren’t looking for alternatives. We’re trying to build something new, and we are asking you to join us.

Black Politicians: White Supremacy's Indirect Rulers

By Christian Gines

The Black Community is an internal colony within America. We have a Perpetual Foreigner status and are treated as such. We are socially, politically, educationally, and economically deprived. We have no self-determination. Where there is institutional racism, there is colonization. U.S. Imperialism affects black people abroad just as much as it does at home, and it is sustained in one fundamental way: Black Politicians. Black Politicians are the faces of white supremacy in the black community. They uphold the same structures that we need to dismantle under the guise of them having to “play ball,” which they claim will lead to “useful” compromise. That approach only benefits the individual and not the entire race. Black Politicians are colonial masters. They are indirect rulers and one of the biggest roadblocks to Black Liberation.  

Black Visibility does not equal Black Power. Just because we have black people that look like us in office or in power doesn't mean that it will benefit us. Just because you have a Black face on a white-supremacist system doesn't mean that white supremacy is over. It has just adapted to the conditions of society. Take the state of Mississippi, for example. Mississippi has the most black politicians in office. Yet, the state still has one of the highest poverty rates, one of the lowest education ratings, worst healthcare systems, and more than half of our renters are at stake of homelessness because of Covid-19. If we have a black person in power implementing the same policies that the white people are implementing, then that representation has no worth to us. What is good for America does not equal what is good for black people. That representation is only worth something to the white-supremacist structure which benefits from the facade of progress by placing a black face on racism and oppression. 

Black Politicians are the same as the indirect rulers that were in colonies during the Scramble for Africa. They come to us saying that they “see us, hear us, and are going to do something about it.” Then they get into office and say that they can't speak up about an issue plaguing the black community because if they speak up, they will be ousted from the club. They claim that they won't have a seat at the table anymore. That shows you the fundamental problem right there. Black Politicians don't really exercise any real power for the community. They are more interested in their individual wealth and comfort than actually fighting for any real change. They are no more than puppets that, instead of being loyal to the constituents that put them into office, are loyal to a political party. They are more worried about personal status than changing the status quo. 

Take the Congressional Black Caucus, for example. The Congressional Black Caucus is dominated by politicians who are more worried about their corporate interests and filling their pockets than actually representing the Black Community's interests. Take the race of Jamal Bowman and Eliot Engel. Jamal Bowman was a black progressive candidate running against the incumbent Eliot Engel, who is a moderate white politician. In this race, the CBC decided to endorse Eliot Engel instead of Jamal Bowman. This example right here goes to show you what the goal of black politicians is to protect the status quo of the White Supremacist Capitalist Patriarchy. They are elected to do the bidding of the ruler. Same as colonial masters. They co-opt revolutionary language to benefit the goals of neoliberalism. 

Look at Jim Clyburn, who was a Freedom Rider and participated in the civil rights movement. When young, he put in work and likely had revolutionary tendencies and thoughts. His effectiveness, though, after being brought into the Democratic Machine, has gone to waste. He no longer articulates the ideas and needs of the black community. What he does now is silence black radical thought and dissent. Take for instance what he said about the protest happening around Defunding the Police. He stated that "Nobody is going to defund the police." That statement is very disingenuous, seeing that most of the protesters are calling for defunding if not abolition. He is doing his job as a colonial master. He is watering down the movement and  trying to subside the black masses by getting us to settle for incremental change instead of fighting to dismantle current systems of oppression. 

Joe Biden picking Kamala Harris as his running mate displays this indirect rule the most. Right now, we are going through a global uprising against policing and prison systems, with people advocating for the abolition of both. During this time, Joe Biden decides to choose a candidate who is known for criminalizing black and brown bodies by keeping innocent people in jail for labor, defending the three-strike system, withholding police misconduct information, defending the death penalty, defending prosecutors falsifying confessions, and a myriad of other things. This shows you the logic of the Democratic Party. They see black people as political pawns who they can manipulate into giving their undying support to the party by just nominating a black woman as Vice President without substantial policy promises. And this strategy has worked. People who were calling for the abolition of police and prisons in June and July are now the same people supporting the Vice Presidential pick of Kamala Harris.

In Black Power, Kwame Ture quoted Machiavelli in saying, "And here it should be noted that a prince ought never to make common cause with one more powerful than himself to injure another unless necessity forces him to it.… for if he wins you rest in his power, and princes must avoid as much as possible being under the will and pleasure of other." This is the reckoning that the Black Community has to have because when we hear talks about “harm reduction,” what harm is actually being reduced. Bombs are still going to be dropped, people are still going to get shot by police, people will still be in jail under both presidents. Harris is deliberately being used to sideline the discussions of real change that we need because we have a black face as the possible second-in-charge of the oppression. We had a black face as the head of America for eight years, and the black community's situation did not get better. Black Lives Matter started under his presidency, and he was hesitant to speak about it, let alone offer substantial change. The Flint Water Crisis was under his presidency, and he didn't provide any substantial change. Not to mention, he dropped 72 bombs a day on the Global South and helped coordinate the outright destruction of one of Africa’s most prosperous nations in Libya. Black faces in high places are just brokers of White Supremacy sold with the guise of progress. 

We don't need Colonial Masters and empty representation. It's not about having a Black person in a position of White Supremacy. We need new institutions in place and new systems that will actually bring about change. Black people are not politically, socially, and economically depressed because of our character or work ethic. Black people are politically, socially, and economically depressed because we are a colonized community. The indirect ruler does not make any colonized situation better. It is just cheaper and easier than having white men run everything in the colony. If we ushered an end to colonization, then we would have an end to our economic serfdom, exploitation, and oppression. We have just as much right to self-determination and freedom than any other colonized group has, and having Black faces doing the bidding of the White Supremacist Capitalist Patriarchy is not the way to achieving that liberation and freedom.

Reopening Schools: We Do Not Have To Descend Into COVID Hell

By Steve Miller, Rosemary Lee and E.B. Shaw

With Corona virus cases spiking across the country, America is on the verge of forcing millions of people into extreme danger. Suddenly, everyone from CEOs, the President, state governors, and the corporate media are calling for schools to open “to save the economy”.

No country has tried to open schools with the virus spreading like here in the US. We are currently in a massive wave of surging cases in 40 states. There are not enough tests or testing. How do you open schools if you can’t test and trace? There’s no way that you can keep a school safe from coronavirus if the virus is raging out of control in the community where the school is located.

Before schools physically re-open, certain principles of public health must be established:

• No re-opening without full scientific best practices. So far, this is seriously lacking.

• No re-opening without dealing with the vast practical hurdles. These steps require more funding, not less. So far, the funding to address these problems does not exist.

• No re-opening without total and complete public transparency. So far, decisions are made behind closed doors. Planning is slapdash and haphazard at best. Teachers, unions and communities must be fully involved as co-equals with politicians in establishing policies.

• Schools should continue to be food centers for the communities, but they should reinstate and expand what government has cut — access to nurses, vision services, mental health and cultural support. Communities need these services now more than ever.

• We cannot fail to hold government accountable for securing public health and public safety. Governments must do what it takes to guarantee childcare in safe ways.. We have no choice here. Public schools are still controlled locally. We must exert our power to protect our children.

We’ve already seen what happens when we use shortcuts and go against public health guidance in reopening. Other countries have been successful in suppressing the level of COVID-19, they have one thing in common — a national coordinated strategy.

The US response to the virus has been fractured, reckless, and incompetent. Rather than the federal government organizing a national coordinated response, it has put corporations in total control.

The government refuses to provide adequate unemployment or health care, thus making families desperate to work.  Many European countries cover 60% to 90% of workers’ wages when they can not work. So do we really have to risk our children and our families so corporations benefit? It really does not have to be this way.

Corporations are demanding their workers return to work so they can make a profit from their investments, but they refuse to provide childcare. So children, teachers and school staff, families and communities, must risk their lives to open schools that could not even guarantee toilet paper before the virus. The only people to benefit from a premature physical opening will be billionaires and politicians of both parties. This is why they tout political reasons to re-open, while ignoring scientific precaution.

These same people, who previously had no trouble closing schools throughout neighborhoods and subjecting children to hours of high-stakes testing at computer screens, now state that keeping children out of school denies them the “emotional, social, and knowledge growth they desperately need.” Suddenly, also, the teachers who were degraded as the worst problem with public schools are now heroic essential fron-tline workers!

Schools are set to open district-by-district across the country while many nail shops, gyms, and bars remain closed. Many schools only use easily contaminated recycled air throughout whole buildings instead of widows that can be opened to bring in fresh air. Taking steps as minimal as social distancing will cost vast amounts. Little things become big problems. Before, a Kindergarten teacher could take the whole class to the bathroom at once. Now a class of 15, that requires 6 feet of spacing, forms a line 90 feet long! And how exactly are bathrooms going to be sanitized?

There are no clear guidelines; planning is confused and hidden from the public; PPE’s are in short supply; school budgets are being slashed even as the costs of adequately dealing with the virus skyrocket. School nurses were virtually eliminated before the virus hit. Now, what exactly is going to happen if a child feels sick?

The gap between school finances, destroyed by the virus, and the greatly increased costs, also caused by the virus, runs into billions. The American Federation of Teachers (AFT) has estimated the funding required to reopen public schools safely is at least $116.5 billion.

Trey Hollingsworth, Indiana Congressman, stated that people dying from the virus is the lesser of two evils to the economy not opening up. CNN reported that Hollingsworth said: “it is always the American government’s position to say, in the choice between the loss of our way of life as Americans and the loss of life, of American lives, we have to always choose the latter.” Lieutenant Governor of Texas, Dan Patrick, announced that old people should welcome re-opening, even if that means they would die.

This corporate class also touts the murderous notion of “herd immunity”, meaning that after 3 million people or so die, the virus cannot spread any more. We have watched health care workers sicken, live in their cars so not to infect their families, and wear plastic bags instead of PPEs. What will happen to school staff?

When policies and political choices set up people to die at “acceptable levels”, it is fair to conclude that this is not an accident. Even before the virus, digital technology has been turning jobs into temp work or no work at all. Corporations are simply not going to spend money to support people they cannot use. In this context, physical re-opening is designed to accept a specific amount of death, to establish toleration of death as a new normal.

Can schools physically re-open now? If so, how?

Hawaii has announced that schools will re-open when no one in the state has tested positive for one month. The Florida Education Commissioner, Richard Corcoran, is the former Speaker of the Florida House and a charter school owner. He demands that Florida open its schools 5 days a week even as Florida COVID cases reach record high levels. Precaution is scrapped for pragmatism.

America’s schools do not meet even the most lenient advice for physical re-opening, which are found on the White House website. Teachers advocate no physical re-opening until no new cases arise in the past 14 days, the time for symptoms to appear. Some districts are beginning to scrap immediate physical re-opening.

Once again, as with the George Floyd rebellion, our character as a people will be tested. Will we stand together, or will our passivity make us complicit in sanctioning unnecessary public death?

Yes, the mental, physical and emotional health of children is critical. No, this cannot be achieved by physical re-opening schools like before. That is impossible. We can find ways to bring young people back together again, but it means letting go of the idea that schools can return to normal. This step requires the imagination and agency of the communities schools serve.

The virus proves that no one is safe unless everyone is safe. The same is true for our schools. For a country founded on genocide, slavery and inequality, the challenge once again is to stand up for the right of quality public education for all.

Everyone now can see the critical and vital importance of public schools to our communities. Even before the virus, schools have been the anchor of the community. Closing public schools is a method of gentrification and community dispossession. Now we see once again that healthy schools create healthy communities and healthy communities create healthy schools.

Teacher unions and parents are advocating that public schools, in these times of COVID, should anchor the communities by expanding the public services they offer.

Immediate and Future Challenges

Whether schools physically open or not, the nature of public education has dramatically changed. Through the Spring, public schools offered online distance learning. As students graduated in June, Zoom Video Communications, Inc announced that it was being used by 100,000 schools globally.

Education has gone from being supported by technology to being dependent on technology and from being corporate-supported to becoming corporate-dependent.

Corporations like Pearson and Google tout online education as a way of saving money in tough times, but this just leads to private profits for corporations.

The latest vampire is Turnitin.com. Students turn in their essays. The website checks for plagiarism; then it sends it back to you, marked in red where you copied something out of the encyclopedia. But they also offer school districts more advanced options like: grading every paper… or maybe even student surveillance.

Under corporate control, online learning, distance learning and virtual charter schools are a dismal failure. The California Attorney General is investigating the entire virtual charter industry for putting private profit ahead of quality education. The largest virtual charter corporation, K12 Inc, “educates” 120,000 students, making $900 million in revenue, all from taxpayer money earmarked for public education. Only half of online high school students graduate within four years, compared to 84% nationally. The Center for Research on Education Outcomes found that students in virtual charters do so poorly in math and English that it’s as if they didn’t attend school at all.

Most teachers estimate that only about 25% of their students do well in online education. The education model is the same drill & kill, test & fail regime that students could not succeed in even before the virus. Most students have trouble learning through screens since the other vital ways that humans learn are eliminated or reduced. And, of course, how does a family provide enough laptops for every child, much less the expense of connecting through Wi-fi?

Government at every level has invited billionaires, tech corporations, and CEOs to determine what public education will look like as the virus rolls on. New York Governor Andrew Cuomo invited Bill Gates and Google into the state to “re-imagine public education.” In other words, government is systematically replacing elected officials, who are (theoretically) accountable to the people, with private, unaccountable capitalists in a campaign to defund and privatize public schools and debase the purpose of education.

The ethical and moral implications of this corporate effort to terminate the education our children and communities need are highly disturbing. There is little public discussion about this even as government proclaims online learning as the miracle of the age.

US schools at every level are facing a crisis of unprecedented proportions. By the time the 2020-2021 school year is over, corporations and governments – if unopposed – will establish a degraded model that works only for the elite and very few others.

When government can bailout billionaires with trillions of dollars, we see that the money exists to build a system of public education that can build the leaders we need to transform the world.

Teaching today must unleash the marvelous powers and creativity of our collective humanity. Students are the people the world needs today to overcome the challenges of a desperately sick population, a sick society and a sick planet.

Unlike most of the world, where the needs of society were put first, in the US every problem is presented as an individual problem and every solution is presented as an individual solution.

It is the same with public education. Ronald Reagan proclaimed that there was no such thing as “society”, meaning no problems result from society, so you’re on your own. This has been America’s mantra ever since, unless of course it relates to corporate governance.

But now we see, scientifically, that the only solutions that can work must be organized at the national level by government to benefit everyone. Social problems are not individual; the emanate from how society is organized. Social problems require social solutions.

Just as COVID-19 demands a national coordinated strategy, the problems of safely re-opening public schools demand national solutions. Not piecemeal, local, short-term quick fixes. Instead, upgrade our schools by combining a public health approach with a public schools approach.

Steve Miller, Rosemary Lee, and E.B. Shaw are members of the National Public Education Committee of the League of Revolutionaries for a New America

Frantz Fanon: A Personal Tribute to the Philosopher of the Colossal Mass

By Alieu Bah

Originally published at Red Voice.

"The colonized intellectual you so much detest has come to become the so-called guardian of your name. I hope you come into the whirlwind and destroy that myth... But in the end, I guess that’s our battle to fight."

The wretched of the earth, the damned of humanity are still here. Still clamoring, still caught in a thousand many battles with themselves and the world built to keep them in their place. Their fate signed, sealed, and packaged for the consumption of the rich and wealthy few of the earth — buffets where the flesh, blood and tears of the poor are served to a greedy, barbaric, capitalist horde are even more sumptuous. Their feasting is the stuff of legend and their belch a recognition of a satisfied bunch of heartless thieves who rejoice more in their heist than any sort of remorse or regret thereof. The proverbial cocktail party list that was supposed to be changed at the dawn of decolonization remains the same even as it is inherited and one family name supplanted for another in a vicious circle of inheritance.

(Un)fortunately your book ‘The Wretched of the Earth’ is still relevant to us. It was supposed to be an artifact of history, forever to rest in the museums of liberated territories. But fact is, it remains this living, breathing, painful reminder to us the colonized of the earth. We still study it because it’s more relevant than ever in this colonial continuity. From the favelas of Brazil, the hoodlands of America, the jungles of Chiapas, from the townships of Johannesburg to the slums of Nairobi, this masterpiece continues to shine in the eyes of a new generation whose parents were sold nothing but dreams.

The shantytown, the medinas, the slums of the world still persist. The compartmentalization of the world continues unabated. However, the divide gets deeper and more cancerous, the line, the border isn’t in the same town or neighborhood anymore, but between the geography of the oppressed — the third world — and the center of the oppressor, the colonist. With the ever-increasing globalized configuration of capital, the choke hold of a staggering market to the expansion of “soft” imperialism in the form of intergovernmental organizations and NGOs from the colonizer, the metropolis has exceeded all expectations of a shared analysis between our generations; the chasm deepened as Hannibal crossed the alps. It all has gotten deeper since you've succumbed to the white claws of death in that hospital in Maryland. The rich neighborhood and the slums today are mostly populated by the same faces, the same race of men and women. When I was in Nairobi last year, it reminded me so much of your analysis on the divided, schizophrenic colonial society.

In more ways than one it’s as if your take was about the neocolonial state in those illuminating first chapters of The Wretched of the Earth. The naked violence of it and the wanton disregard for human life makes you a prophet in this secular tradition of progressive politics we share. But more searing and penetrating of your analysis was the scholar and intellectual who comes home from the west. They’re here after all this time, still concerned about particulars and false western moralisms. They do all kinds of gymnastics with the minds of the masses to divert them from the struggle for land, bread, and water.

They are being found out, though. Young and old progressive Africans have started studying and propagating your works and see their (colonized intellectuals') likeness once again. The objective conditions are also giving rise to a newer, more badass context that defies the pull and gravity of bourgeois intellection grown from those barren western soils. These new rebels, ghetto-grown intellectuals, unknown revolutionaries, are at once denouncing these puppets and concretely building again the old-but-known mass organizational model that led to our liberation in times gone by from the clutches of classic colonialism.

Your name, though, continues to raise colonial anxiety. It continues to sound like metal dropping on the silence and soothing sounds of the corporate world. From Palestine to Panama, it continues to liberate, to agitate, even, as it brings home sanity to a lost generation. Your righteous ghost keeps coming back to haunt the Towers of Babel. Even after all this time! It reminds one of the old saying that wickedness tarries but a little while, but the works of the righteous lives on forevermore. Your lives and afterlives have clearly shown the truth and precision of that good old saying. Year after year, you resurface in the most unlikeliest of places, but unbeknownst to bourgeois historians, so long as oppression exists and there is a demand for the objective material conditions to change, you, the philosopher of the colossal mass, will show face, heart, and mind, and guide the movement even from the grave.

But there is trouble now. Your name and your work continues to be appropriated by academe. You’ve become a career for the well-to-do, the ones who erase. They have complicated your legacy. The colonized intellectual you so much detest has come to become the so-called guardian of your name. I hope you come into the whirlwind and destroy that myth. I hope you come into the thunder, into the tsunami, into the catalytic force of nature. But in the end, I guess that’s our battle to fight. To honor your name by bringing it home to the oppressed and the wretched of the earth.

There is so much to enrich this letter with, but so little time and space. But we who inherited the disinherited, we who took the pledge to raise a billion-strong army, we who know liberation and freedom is a birthright, we who want to end the compartmentalization of the world — the Manichaeism of the land — we are here, in our many forms, subjectively and objectively honoring the call to “...shake off the great mantle of night which has enveloped us, and reach for the light. The new day which is dawning must find us determined, enlightened and resolute. We must abandon our dreams and say farewell to our old beliefs and former friendships. Let us not lose time in useless laments or sickening mimicry.”

Gold and Oil: A Tale of Two Commodities

By Contention News

Enjoy this special edition of Contention News — a new dissident business news publication — with analysis exclusive to Hampton Institute. You can read more and subscribe here. 

Gold broke $1,930 an ounce this week, its highest level ever. This follows weeks of record inflows to gold-related exchange traded funds (ETFs), and comes alongside silver’s biggest weekly gain in four decades.

Oil also advanced last week, but prices remain depressed -- the fracking industry now faces “extinction.”

Solving the puzzle of how metals can be gaining while the production of the most crucial commodity of our times can “peak without ever making money in the aggregate” unlocks important insights into how our global system works at its core. 

Money and the world of commodities

To repeat: money exists to circulate commodities. [1] Anything can serve as money as long as there is a stable relationship between the value of money at large and the world of commodities it circulates. The best way to do this: pick a representative commodity to serve as money. [2] Metals have low carrying costs and are easily divisible, so most epochs have settled on gold or some other metal for this purpose.

Since 1973, however, the world money system has not relied upon a representative commodity. Instead it has relied upon the United States to use political and military means to keep commodity prices stable. [3] The easiest way to keep prices steady: pin them down. Prices and profits serve as the signal for action: higher commodity prices = higher input costs = squeezed margins. 

Politicians don’t have to worry about the monetary system, they just have to think about corporate earnings. 

Oil prices and economic crisis

This worked for most of the world’s commodities save one: petroleum. The oil crises of the 1970s prompted a multi-year inflation crisis and economic “stagflation.” The United States responded with the Carter Doctrine, which defined the free flow of oil in the Persian Gulf region as a matter of U.S. national interest, justifying persistent military presence in the region and strategic alliances with key oil-producing states to keep prices low.

This system broke down between 2003 and 2008, with oil prices spiking more than $120 a barrel over that period. What caused the spike? The most likely causes:

• unanticipated popular resistance to the U.S. intervention in Iraq 

• accelerating energy demand from China’s rapid economic development

• significant financial speculation [4]

This price rise reached crisis levels in 2008 immediately prior to the Great Recession. Correlation isn’t causation, but it isn’t out of line to think that rising fuel and other commodity costs might have prompted an uptick in mortgage defaults. The same goes for investors selling off previously iron-clad securities as prices in general grew unstable. 

Fracking provides a crucial response to this kind of crisis. Not profitable under normal conditions, rising prices draw investment into the sector, bringing on new supply, driving prices down again. Companies borrow big to get started and go bust quickly, but executives get their golden parachutes, creditors get their settlements, attorneys make killer fees, and large firms gobble up all the abandoned assets. Only oil workers, royalty owners, and taxpayers lose.

Gold’s moment today 

Now a new crisis from outside the energy sector has destroyed demand and plummeted prices. [5] Central bank “money printing” in response should be inflationary, and thus the rise in gold prices, according to conventional economic wisdom.

Except that conventional wisdom is actually backwards. The money supply does not determine prices, commodity production determines how much money you need. If production goes up or production costs get bid upwards, [6] you need more money. Money gets pulled out of savings, banks increase lending, and the supply and velocity of money goes up.

Simply pouring more money into a depressed market, on the other hand, drives that cash into savings. This oversupplies money markets, driving down interest rates. As real rates — interest minus expected inflation — dip into negative territory, gold’s zero yield becomes a better bet than anything else. That’s how you end up with low oil prices, a collapsing fracking industry, and rising gold values. 

But now U.S. political failure is putting the whole dollar system into question over and on top of this. The result: investment flowing out of the dollar and into the yuan and the Euro. Without a clear alternative to the dollar as “world money,” gold is even more attractive as an asset. If rising demand in countries outside the United States drives up oil costs, price instability could make it even better. 

The puzzle still has pieces that have yet to be placed, but the image is clear: a fragile system is coming to an end, and when it falls who has the gold will rule. 

For more anti-imperialist business analysis, subscribe to Contention. 

Notes

[1] Much of the analysis here is inspired by collective study of The Value of Money by Prabhat Patnaik

[2] Any advances in the productive forces at large will shift the marginal value of all commodities, the money commodity included. Industrialization, for example, allowed the same amount of labor-power to produce a larger quantity of commodities, lowering the marginal value of each. Industrialization did the same for gold production, shifting its relative value to the world of commodities in the same way.

[3] The recent right-wing coup in Bolivia represents an example of this strategy. The United States could not tolerate an independent government controlling a significant supply of lithium. Even if Tesla buys its lithium in Australia, the prospect of an anti-colonial government controlling enough supply to boost prices — especially in alliance with China — not only impacts the automotive industry, it actually poses a risk for the whole monetary system. 

[4] Another way of putting this: the falling rate of profit produced rampant financialization which collided with class struggle against imperialist occupation and Western hegemony to destabilize commodity exchange on a fundamental level. 

[5] The crisis is internal to capitalism, not exogenous, the result of rampant deforestation and imperialist supply chains. See Rob Wallace et al. “COVID-19 and the Circuits of Capital.”

[6] Bid upwards by class struggle — workers fighting for higher wages, peasants demanding fairer prices for their outputs, colonized countries taking charge of their resources, etc.

Remembering Guaidó’s Last Stand

[Photo: Mark Wilson/Getty Images]

By Matthew Dolezal

Originally published at the author’s blog.

The year of our Lord 2020 will likely go down in the history books as one of the most existentially ridiculous years ever. It began with President Donald Trump belligerently assassinating Iranian General Qassem Soleimani, who was on a peace mission in Iraq. Unlike many controversial Middle Eastern figures, Solemani was universally beloved in Iran and played a leading role in the defeat of ISIS in Syria. Shortly thereafter, Chinese officials isolated a novel coronavirus strain noticing a strange influenza-like ailment afflicting residents in and around the city of Wuhan weeks earlier. Needless to say, the coronavirus behind what is now referred to as Covid-19 has led to a massive global pandemic. On May 25, with said catastrophe in full effect, a white Minneapolis police officer lynched an unarmed, nonviolent black man named George Floyd, causing nationwide rebellions and calls to defund/abolish the institution of American policing. And that’s just the tip of the quickly melting iceberg.

It has certainly been a hell of a year. But there’s a special little story that may have barely registered on the radar of all but the most avid connoisseurs of current events. During the first week of May, a ragtag gang of mercenaries launched from Colombia and was quickly apprehended by Venezuelan forces and socialist fishermen after attempting to invade the neighboring country via the coastal La Guaira State and the peninsula of Chuao. In the wake of this misadventure, news broke that two of the approximately sixty combatants were in fact American citizens and former Green Berets Luke Denman and Airan Berry. This embarrassingly botched mission, coined “Operation Gideon”, was quickly revealed to be yet another coup attempt against democratically-elected Venezuelan President Nicolás Maduro and the Bolivarian government more broadly. A leaked contract described tactics that included captures, assassinations, drone strikes, and even death squads in order to “liberate” the oil-rich nation.

The lead planner behind the foiled operation was none other than Silvercorp CEO Jordan Goudreau. Gourdreau's Florida-based private security firm was contracted for $212.9 million, yet only offered the aforementioned mercenaries between $50,000 and $100,000 each for their life-threatening services. Silvercorp USA initially began with hopes of converting military veterans into school security personnel — theoretically to protect students from school shooters for a small subscription fee — but the scheme appears to have been shelved. Gourdreau, himself a U.S. Army veteran, teamed up with retired Venezuelan General Cliver Alcala, who had previously been involved in various coup plots, often with assistance from the right-wing Colombian government. This was supposed to be Silvercorp’s big break.

As journalist Lucas Koerner summarized, “Jordan Goudreau, 43, was responsible for training a contingent of 300 Venezuelan army deserters in Colombia, who were to penetrate Venezuela in a heavily armed caravan and seize the capital of Caracas within 96 hours.” These details and more had been laid out in the aforementioned contract, which, thankfully, also contained an equal opportunity employment clause, promising to be inclusive “across gender, ethnicity, age, disabilities and national origin…”

One of the most notable aspects of the contract, however, is the fact that it named Juan Guaidó as the operation’s “Commander in Chief.” Guaidó, who initially denied any involvement, is a disgraced Venezuelan politician who clumsily declared himself “interim president” of the Bolivarian republic early last year and has since become embroiled in a corruption scandal.

The political trajectory of Guaidó is fascinating in its own right. In 2007, after graduating from Andrés Bello Catholic University in Caracas, Guaidó moved to Washington, D.C. to study under neoliberal economist Luis Enrique Berrizbeitia at George Washington University. Later that year, he took part in anti-government rallies after the Venezuelan government declined to renew the license of Radio Caracas Televisión (RCTV) — a privately owned station that played a prominent role in the 2002 coup attempt against then-president Hugo Chávez (an event chronicled in a documentary entitled, "The Revolution Will Not Be Televised"). And thus began Guaidó’s tumultuous tenure in the realm of Venezuelan politics.

The young Guaidó continued taking part in anti-government demonstrations with “Generation 2007” youth activists, and, in 2009, helped establish the Popular Will Party with infamous right-wing political figure Leopoldo Lopez. During the subsequent years, Guaidó met with various regime change specialists and wealthy business owners, and even participated in the violent guarimbas in 2014, which aimed to destabilize and ultimately overthrow the government. The emerging political figure then proceeded to publicly whitewash the deadly tactics used by right-wing protesters, presenting himself as a polished and professional advocate for democracy.

Guaidó also participated in Venezuela’s National Assembly, spending many years as an alternate deputy, until the 2015 elections when he narrowly secured a seat on the governing body. The opposition-dominated National Assembly eventually selected Guaidó as its president — a position that is awarded on a rotating basis. This new development made Guaidó the perfect candidate for Washington’s regime change efforts. Despite still being unknown to 81% of Venezuelans, Guaidó declared himself “interim president” on January 22, 2019 with the full support of the Trump administration. What followed was a series of Western media misinformation campaigns, bungled coup attempts, and, after all else failed, a new wave of U.S. economic sanctions that killed an estimated 40,000 Venezuelans in just one year.

After losing his National Assembly seat in early January, 2020, Guaidó staged a childish scene in which he attempted to climb over the fence surrounding parliament. The floundering politician then faded from the spotlight until the recent failed incursion. Indeed, Operation Gideon — also referred to as “Stupid Bay of Pigs” — appears to have been a pathetic, last-ditch effort to install Guaidó as Venezuela’s president and implement a program of neoliberal “shock therapy”, primarily focused on privatizing the country's vast oil reserves.

Though appearing exotic on its surface, this quaint anecdote also fits into the “bigger picture” of 2020’s troubling zeitgeist. As part of its long-standing policy of violent imperialism throughout Latin America, the U.S. government funded the aforementioned 2002 coup attempt in Venezuela, hoping to oust popular president Hugo Chávez. Despite its consistent two-decade commitment to disrupting the progressive Bolivarian Revolution, the world’s only remaining empire has evidently failed miserably. This defeated regime change effort mirrors other recent U.S. foreign policy failures, such as that of the devastating Syrian proxy war. In keeping with its increasingly desperate imperial ambitions, the U.S. has now lashed out against China — its main competitor on the global stage and a nation that has aided Venezuela amid the aforementioned brutal sanctions. The epic downfall of Juan Guaidó is not only a tale of personal and professional shortcoming, but could also symbolize a decline in the neoliberal global order more broadly, with new possibilities on the horizon.