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David Laibman: Concerning the Occupy Movement and “Insidious Threats”

In Economics & Politics, International, Labor, U.S., URPE Internal on December 16, 2011 by juliohuato

One strain of argument in the great debate about the future of the Occupy Wall Street (OWS) Movement is one that I will call the “Beware of Insidious Threats” position (hereafter: BIT).  This view is neatly expressed in a recent essay by Ismael Hossein-zadeh (“An Insidious Threat to the Occupy Movement”), which appeared in various places online, and in the URPE Newsletter (Vol. 43, No., 1, Fall, 2011).

Hossein-zadeh writes of the “threat of preemption, or cooptation, posed by the Democratic Party and union officials.”  He is wary of all approaches from liberals and labor that propose alliances with the occupiers: “. . . the Democrats are trying to utilize the Occupy movement the way the Republicans do the Tea Party.”  Liberals are “trying to build bridges between the Democratic Party and the Occupy movement in an effort to channel the protesters’ energy to the party’s electoral machine.”  Citing the Democratic Party’s “record of cooptation and betrayal,” he urges OWS to “chart a political movement of the working people and other grass-roots independent of both parties of big business.”

This is an old argument.  It was around (even dominant) in New Left circles in the 1960s.  Of course, just because an argument is old doesn’t mean it’s false; my counterargument was also around back then.

In the BIT scenario, the “energy” of the protest movement is a fixed quantity, which can be captured by some force outside the movement by means of trickery and sly manipulation of ideas and feelings.  But this separates OWS’ energy from the actual crisis and its impact.  If the crisis is profound, and if it points toward radical social transformation for its resolution, it will reach ever-new layers of the working population and draw new energy from deepening responses to it.

That is a lot for Democrats (and “union officials”) to “coopt”; they will be able to use their deadly wiles to harness that energy only if their view of the crisis, and the society that spawned it, is valid.  That view is the reformist one: the crisis is an aberration of the financial system and can be overcome by wise policy, entirely within the existing structure of power and privilege ‒‒ in other words, without confronting, let alone replacing, capitalist social relations.

To the extent large numbers of working people share this reformist view ‒‒ or at least do not (yet?) have the foundation to oppose it consistently ‒‒ they are indeed susceptible to cooptation.  Now suppose the coopted Occupiers help Obama win a second term in November, and the Dems get secure control of both houses of Congress.  If, and only if, the reformist view is indeed correct, government will then pass new financial regulations, progressive taxes, full-employment legislation, comprehensive health care, fully funded education, housing guarantees, etc.  The crisis will be over.  The era of shared capitalist prosperity will begin.  The Occupiers will go home, vacate Zuccotti Park and all other occupied locations, because their goals will have been met.  Capitalism will have solved its crises within itself, and socialism will be left out in the cold.

In the BIT view, therefore, socialism only has a chance if we somehow prevent capitalism from reforming itself.  The chain of reasoning is inescapable: capitalism can solve its problems.  The BIT position thus coincides, fatefully, with the official (liberal) Democratic Party view of the world.  The Dems try to fix capitalism; our job is to oppose these fixes, even if this means that we place ourselves in opposition to struggles and demands for things that the 99% really need.  Socialism is then an Idea, one that can only come from outside of the massive reality of life within capitalist society.

Of course, if the OWS Movement were to help Obama & Co., and get coopted in the process, it could also be betrayed.  The Dems could say: “Hey, our fingers were crossed!”  No progressive legislation, no financial regulation, no end to the crisis.  Then the BITers will say: “See, we told you so.  They can’t be trusted.”  Who, then, can the Occupy Movement trust?  Why us, of course!  It is like a Biblical commitment of faith: place your trust in true prophets (the prophets of socialism), not false ones.  Of course, when facing two opposing claims to true prophesy, one is well advised to heed the old Biblical advice: “By their deeds ye shall know them.”  And, let’s face it, if the BITers have their way, our deeds will not come off so well.  Working people are suffering, and we say: “Don’t listen to those who claim to be able to fix things.  Wait.  The Idea of socialism will eventually triumph.”  You can hear the likely response to this: “The Idea of socialism and $2.20 will get me into the subway.  Ideas don’t pay the rent.”  It is hardly surprising that many working people listen to the left and to the political mainstream, and say “A plague on both your houses.”

The BITers are worried about illusions concerning the Democratic Party.  Hossein-zadeh:  “The Democrats are as much responsible for the economic problems that have triggered the protests as their Republican counterparts.”  This formulation speaks volumes.  Neither Democrats nor Republicans “are responsible for” the crisis.  Capitalism is.  Again, we see the deeply rooted assumption: if only morally and intellectually worthy political forces were at work, there would have been no “problems.”  The crisis could be solved within capitalism, if only the will were there.

But what if the assumption shared by both the Dems and (implicitly) the BITers ‒‒ that stable and final solutions can be found within capitalism ‒‒ is false?  This is where political economy must play a role in the OWS Movement, going forward.  What if, as someone once said, the contradictions are immanent, inherent, irreconcilable?  What if shifts in the balance of power between the 1% and the 99% (in favor of the latter) generate new pressures and tensions, creating the need for more advanced demands and proposals, ones that encroach further upon the prerogatives of wealth and privilege?  What if the massive effort to organize to win new people-supporting and -empowering institutions ‒‒ think of the New Deal ‒‒ and to staff those institutions, once created, and implement their purposes, generates more of both the experience underlying a stable shift of consciousness toward socialist values, and the capacity to actually carry out the transfer of power to the 99%?  Then, over time, socialism becomes not just an Idea, but the result of living history.  The revolutionary will that we seek develops within the existing society.  This is, at bottom, just another way of saying that capitalism is inherently and structurally flawed, and that its core nature is the best source of the agency for its eventual transformation.  One wonders how many people on the left who give advice to OWS believe that.

The energy of OWS, then, is not a fixed quantity.  It can’t, ultimately, be coopted, for the simple reason that the crisis that created it, and continually re-creates it, will remain unsolved.  This is so even if partial victories are won, and steps in the direction of a humane society achieved.  Socialists should embrace all of those legislative victories mentioned above, which the BITers fear, not because they will result in a glorious and permanent new stage of soulful capitalism, but because they will not do that; because they will place new, more comprehensive, restraints against capitalist prerogatives on the political agenda.

All of this clearly depends on our view of capitalist society, and that is why critical political economy ‒‒ which has been, and remains, essentially Marxist, even while it draws on many other sources ‒‒ is essential.  If capitalism is basically sound, requiring only some reformist tinkering, then nothing we do will stop OWS from eventually climbing into bed with the Democrats.  If capitalism is a monolithic system in which subaltern social forces are entirely powerless, change can come only from outside, that is to say, from an Idea.  In that case, by all means warn the occupiers of the danger of cooptation; urge them to be wary of getting involved with movements and programs that do not fly exclusively anti-capitalist banners.  If, by contrast to both of these accounts, capitalism is a system in which ruling and subordinate social classes are locked in an ever-present conflictual embrace; and if capitalism necessarily and always creates the tensions that are the source of its transformation from within, then build the widest possible alliances of people who are mobilized against its abuses, because this mobilization itself is the ultimate source of the consciousness of the capitalist social system as such, and of the agency to transcend that system, which we seek.

Now of course the Dems will try to coopt and channel OWS.  That is their role, and it is to be expected.  It is based on their belief that stable and final solutions within the system are possible.  We, on the other hand, can enthusiastically both cooperate with reformist political forces and independently build OWS (and a revitalized trade union movement, and much else), always fortifying the mass activism, grass-roots mobilization and open-ended militancy that must be the signature of a genuine movement from below.  Our arguments for radical imagination and for eventual revolutionary transcendence, however, will not be decisive, no matter how clever we are.  What will finally convince our base, and the millions of working people who must join that base, is their own experience in the struggle to win small victories in the battle for a dignified life, and to contain the predations of capitalist power in the present.  And this experience accumulates over long stretches of time during which the concepts “capitalism” and “socialism” will not yet be available to many of them, and in places, such as the base organizations (not the leaderships) of the two major parties, where progressive activists will almost certainly be found.  (Yes, I am thinking that we can even go after parts of the Republican base, especially the Tea Party.)  It is the actual confrontation itself, the practical engagement with capitalist society on every terrain, that matters most for transformation of understanding.

So if this is on target, we need not fear cooptation, and betrayal.  If we are betrayed (and we will be, from time to time), that will help lay foundations for greater political independence.  If we are coopted (and certain individuals and organizations that are part of our coalition will undoubtedly fall into reformist and naively electoral traps), the crisis and the need to mobilize against it will not go away as a result.  Much then depends on how we pursue the multi-front struggles for reforms, which are at bottom nothing other than small shifts in the balance of social power, in the right direction.  These can divert the energy of OWS, leading to discouragement, cynicism, fragmentation, etc. and postponing socialism.  But, with imaginative and militant leadership, they can also create new energy and possibilities, especially since ‒‒ as we know ‒‒ capitalism cannot deliver complete and stable solutions to its “problems,” which are in fact central to its functioning.  Ultimately, it is the nature of the society that we must take charge of and transform that will determine our growth path.  And eventually we will be the ones doing the coopting.

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URPE Newsletter F11

In Economics & Politics, International, Labor, U.S., URPE Internal on December 13, 2011 by juliohuato

URPE Newsletter Fall 2011, Vol. 43, No. 1 (pdf)

In This Issue:
URPE Supports OWS: Report from New York
Announcements

On Radicals and Economists
An Insidious Threat to the Occupy Movement
2012 ASSA program
Economy Connection
The Role of URPE…
Paddy Quick: URPE Supports OWS
OWS: A Gift for the Economy
The Fires Were Already Burning
Reflecting on OWS

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URPE Supports OWS: A Report from New York

People participating in Occupy Wall Street shared their experience at the URPE “War on the Working Class” conference in Brooklyn on Saturday October 1, and a group of 9 people also attended Sunday’s Membership Meeting. URPE members applauded the activists and the discussion turned to ways in which we could cooperate in working for our shared goals. It is clear that the activists will succeed in continuing the occupation for a long time, and also that the fledgling movement will grow. Already there have been occupations in 45 states, and increasing numbers of people are openly challenging “the system.” Two of the popular chants are: “They got bailed out, we got sold out” and “We are the 99%.”

The activists are eager to discuss their own perspectives and are open to a wide range of ideas. There is a general recognition that the economic system has failed to provide for the people and that the political system does not provide for their representation. Several URPE members have already visited “Liberty Park” where informal discussions are continually taking place. The occupants come from a wide variety of backgrounds. Young people who have never held regular jobs mix with students from both public and private universities and are joined by unemployed people from “Main Street” to ”Wall Street.” There is a daily “General Assembly” each evening at 7 where decisions are made by consensus with scrupulous attention to democratic procedure, including a policy for preferential under-represented in traditional discussions. (This resembles URPE’s own “affirmative action” policy for recognition based on gender and race/ethnicity/nationality, but includes preference for GLBT people.) URPE members also participated in the New York October 5th demonstration of 20,000 people which brought more than 30 trade unions, many community organizations and students walking out from several universities to march in solidarity with Occupy Wall Street. It is hard to describe the ways in which the possibility of a broad-based, unified movement in opposition to “the system” generated a welcome sense of optimism about the future, in place of the despondency which has been an all too common a response to the increasing attacks we have been experiencing for a long, long time. On a small scale, the participation of Occupy Wall Street people in Sunday’s URPE Membership meeting was a terrific experience for URPE members, and the activists were delighted to be greeted with such enthusiastic support.

The activists are committed to a long-term struggle. They know that it will be hard to continue the actual occupation in New York in its present form in the cold months of winter, and there is ongoing discussion of how to build the movement into the future. New York activists talked, at Sunday’s URPE meeting, of setting up a “free university” which would allow for more structured learning, and URPE offered to help in this. Sunday’s discussion included ways in which we could share out experiences on how to ensure transparency and accountability among our members/participants. In the meantime, please note the following:

· Occupied Wall Street Journal (a newsletter produced by Occupy Wall Street) is taking in submissions from everyone at occupymedia@gmail.com. If you could pass this info around with the people in URPE, that would be great.

· For live feed go to: http://www.livestream.com/globalrevolution

· In New York, the people working on URPE and Occupy Wall Street are: Julio Huato (juliohuato@gmail.com), Ruthie Indeck (soapbox@comcast.net), Paddy Quick ( paddyquick@aol.com), and Chris Rude (chris.rude@ciper.org).

· URPE members who are active in this movement in other parts of the country are encouraged to share their experiences on URPE listserv, which can be found at www.urpe.org.

· Please sign the Higher Education petition: Higher Education Faculty support the OCCUPY WALL STREET protest. We see the impact of the economic crisis in our classrooms and on our campuses each day. Our students are burdened with crippling student loans as they face a bleak and depressed job market and an economic recession with no end in sight, while our institutions increasingly rely on adjunct and part time faculty. We teach more and more for less and less, and our students suffer as we lose our ability to mentor because of our own lack of time and financial insecurity. The OCCUPY WALL STREET movement is a step towards a better and more just future for our past, current, and future students and for higher education faculty. We stand in solidarity with Occupy Wall Street. To read more and to sign, please visit: http://chn.ge/vx7Gqw

Report submitted: October 8, 2011

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Announcements


RRPE Editorial Board Election Results

Your votes are in! Seventy-five members voted to fill eleven positions on the RRPE Editorial Board from a slate of thirteen candidates. Those elected for the 2011-2014 term are: Brigitte Bechtold, Firat Demir, William Dugger, Don Goldstein, Jon Goldstein, Fadhel Kaboub, Tim Koechlin, Minqi Li, Andrew Mearman, Shaianne Osterriech, and Bruce Pietrykowski.

Our sincere thanks to retiring board member Richard Cornwall, who brought such breadth and depth of knowledge to the ranks of reviewers. Richard is a true philosopher.

Hazel Dayton Gunn, Managing Editor


URPE Conference: Brooklyn, NY

The War on the Working Class October 1 & 2, 2011

Thanks go out to all of the presenters, speakers, attendees, volunteers, and the staff of St. Francis College for helping to make the URPE 2011 Brooklyn conference a success.

On behalf of the URPE Steering Committee, I would like to thank everyone in attendance for being patient throughout the day as we all had to deal with the fire alarm fiasco. The conditions were not ideal; however, many people were still able to share ideas, learn something new, and make connections to individuals and groups that share their common interests and goals.

For audio and video of selected presentations, go to the URPE website, www.urpe.org.

In Solidarity, Frances Boyes (for the URPE Steering Committee)


URPE at ASSA Chicago 2012

URPE will be sponsoring the following events in Chicago for the annual ASSA conference.

The URPE cocktail reception will be Friday, January 6th at 6 p.m. at the Palmer House Hilton in the Wilson Room.

The URPE membership meeting is Saturday, January 7th at 4:45 p.m at the Palmer House Hilton in the Indiana Room.

For a complete schedule of URPE sessions at the 2012 ASSA, please click here.


URPE 2012 Summer Conference

August 10-13, 2012

Political Economy of the 99%: Today and Tomorrow

For more details, workshop submissions, and registration information, please visit www.urpe.org.


Update on Economy Connection, URPE’s Resource/Speakers Bureau

By Ruthie Indeck, Coordinator (201-792-7459 or soapbox@urpe.org)

Seniors Fight Back “You’re smarter than the average,” Renee Toback told an audience of seniors living at a NYC residence, as they replied with a chorus of “No!” to her question: “Is Social Security going to disappear?” They might not be camping out on Wall St., but they were certainly eager to learn about the economy and explore ways to exercise their political power. Armed with charts on productivity, inequality of income and wealth, and tax and deficit rates over time, Renee began her Sept. 7 talk with a discussion of the Social Security non-crisis, and then moved on to the deficit, inequality, taxes, creation of demand, interest rates, and the politics of attacking New Deal programs. She concluded with suggestions on how to fight back. The Social Security system is not in crisis, Renee said – it currently has a surplus. Mainstream conservative predictions of failure are based on conservative assumptions, and many predictions about what will be happening 75 years from now, or even a few years from now, are as likely to be accurate as predicting the weather. Shortfalls that may arise in the future can be fixed by such measures as lifting the cap on the level of income that is taxed. She responded to politically-motivated anguish about Social Security being financed by government IOUs – money that has already been spent – by noting that the “IOUs” are more commonly known as bonds or treasury bills, which are considered safe by lenders around the world. When the government, or anyone, borrows money, this money is generally spent or invested – that’s why it was borrowed in the first place! Moving on to deficits, Renee demonstrated that our current deficit is lower as a percentage of GDP than some earlier deficits, especially the deficit incurred during World War II. As a percentage of GDP, the US is 35th on the list of countries in deficit. It is not a cause for hysteria at this time, and austerity measures will make it worse. What we should be worrying about, Renee said, pointing to her chart, is growing inequality of income and wealth. We should raise taxes on the rich. Demand will not be created by giving more money to the rich; they can’t spend all the money they have already! The rest of us create demand through consumption, but currently most of us don’t have much money to spend. That leaves government, which could generate demand by spending money on a long list of infrastructure and social service needs. When asked why Obama’s stimulus didn’t work, Renee said that it did work to some degree, but it was too little and too short. Renee responded to the argument that government borrowing would raise interest rates, which are now so low that she couldn’t even see them because of all the 000′s before the numbers. Why, then, do politicians want to destroy New Deal programs? She suggested a few reasons: scaring people into subservience and weakening labor’s power to resist, and preserving a climate in which large companies can buy up failing smaller companies. Profits are doing well, Renee noted. In response to questions about what people can do, Renee recommended several courses of action: “Don’t fall for it!”; educate people and talk to your friends; visit and write to your political representatives; vote, and march. Renee ended by quoting a woman she met at a protest march: “I’ve been marching since the New Deal, so stop complaining and move!” Fixing the Broken Economy Renee Toback also spoke to members of Northwest Bronx for Change on September 17. The topic was: “The Budget Deficit Crisis: The Inconvenient Truths They Don’t Want to Talk About When It Comes to: Jobs, Taxes, Balancing the Budget, the Recession, and Unemployment.” A comment on the NwBx website: “Our September 17th NwBxFC General Meeting turned into an economic version of the popular Discovery Channel show as progressive educator/economist Renee Toback debunked several of the conservative myths that the media is so fond of repeating endlessly.” Members of NwBx were first introduced to Renee when she and Eric Laursen spoke at a March 2010 MoveOn.Org event on corporate political and economic power.

A Radical Political Economist’s View of OWS: Chris Rude on KPFA On October 1, Chris Rude took a break from the URPE Brooklyn Conference to be interviewed by Kris Welch of Pacifica’s KPFA Berkeley. Kris was looking for a radical political economist’s viewpoint on Occupy Wall Street. Chris began by placing the Occupation in the context of the ongoing economic crisis. He noted that the economy is in its most serious crisis since the 1930s, and that as soon as the banking crisis was stabilized (though not solved) through massive intervention by the Fed, a new crisis phase emerged: a fiscal crisis of the state – a crisis of sovereign debt. In the US, banks are profitable again, largely because of foreign investments, but are not lending domestically; the domestic economy remains frozen. The two outstanding features of the current crisis, Chris said, are persistent unemployment and a foreclosure crisis, which feed one another and keep the economy at a standstill. Bipartisan government policies of austerity have made the situation worse. Chris does not think the powers that be have any solutions to the crisis. Chris went on to enthusiastically describe Occupy Wall Street, to some extent an outgrowth of an earlier struggle over the mayor’s budget which culminated in an encampment near City Hall called Bloombergville. Chris has been particularly struck by the self-organization of OWS. And not only are other organizations, like unions, supporting OWS, but the occupiers are sending people to support other movements, such as joining teachers in a picket line. Chris finds people at Liberty Plaza to be eager for knowledge – he has spoken there a few times. Chris worked on Wall Street for a number of years and is struck by the increased security in the area, and by “how scared they are by ragtag demonstrators.” Chris is inspired by OWS and feels that their presence is having a profound political effect that overrides any lack of specific demands. During the interview Kris Welch talked about the URPE conference taking place in Brooklyn and listed some of the workshops. Chris talked about our website, and some of URPE’s regular activities. You can listen to the interview at http://www.kpfa.org/archive/id/73830.

Could Wall St. and Climate Change Be Connected? “I was listening to AM news radio reporting on the Wall St. demonstrations and the announcer seemed genuinely perplexed that there could be a connection between the ‘Wall Streetification’ of the U.S. and climate change,” Eco-Logic (WBAI) host Ken Gale said, while introducing the topic of his Oct. 4 show featuring talks by Brian Tokar and Chris Williams. “The two authors analyze the connections between economics/economic systems and climate change, energy sources and social movements.” The two talks were recorded at URPE’s 2011 Left Forum Panel “Capitalism, Climate Change and Social Conflicts.” Their use on the radio was suggested by EC. Brian began by talking about the disconnect between how climate change is discussed in the mainstream press and what’s really happening in climate science. The popular press debates whether climate change is real and if so, whether it is caused by greenhouse gasses. Brian says that among scientists, that debate was over 30 years ago; now they talk about the severity of climate change, how quickly it’s developing, and the implications for humanity. “When we look at what’s really being said by the climate scientists today, it makes an increasingly compelling case for the inherent incompatibility of capitalism with the continued thriving of life on earth, particularly human civilizations.” Brian went on to talk about the December 2009 Copenhagen conference, which many had anticipated would take further steps toward reducing greenhouse gasses. Instead, the US led a backward march from legally-binding rules to voluntary compliance and coercive backroom processes. Developing countries were asked to submit greenhouse gas reduction pledges in order to be eligible for US aid. Brian then presented scenarios of the effects of varying degrees of temperature change. Brian concluded by proposing some real solutions: a drastic reduction in energy use, and an economy that is not capitalist – one that allows us to reduce consumption while improving the quality of life.

With an augmented sense of urgency from Japan’s disaster, and inspired by Wisconsin’s spirited activism, Chris Williams painted a picture of what a better world might look like and explored how to get there. He talked about physical changes (no radiation or toxic chemicals, more jobs and infrastructure repairs, food rather than guns) as well as lifestyle changes (working less, more choices about work, less pollution, goods that would last, more decision-making power). Chris gave a scathing critique of current energy policies – “clean” coal, “safe” nuclear power, offshore drilling, hydrofracking – and noted that we can’t explain recent US wars without talking about the need to control oil. To fight these policies, we need a movement for labor, social and ecological justice based on the twin pillars of renewable energy and jobs, Chris said, quoting the Wisconsin slogan “I am the union!” Chris agreed with Brian about the need for a new economic system based on cooperation, production for need not profit, and democratic decision making about production. He wants a world where people have time for arts and culture, can eat the food and drink the water, and can live sustainably. After the two recordings, Chris gave a live update, expressing hopeful feelings about a new unity among labor, students and community members based on current OWS activities. You can listen to Brian, Chris and Younes Abouyoub at www.urpe.org/conf/lf/LFproceed11.html.

URPE Members Participate in #Occupy Wall St.

Many URPE/EC members and others from the general URPE community have signed themselves up to do teach-ins and forums at various Occupations. Economics Forums at Occupy Boston’s Free School University have featured URPE folks and some of their talks are online. See these pages:

http://dollarsandsense.org/blog/ (scroll down)

http://wiki.occupyboston.org/wiki/FSU
http://www.occupyboston.org/
https://www.facebook.com/groups/ OccupyBostonFSU

If you are in the Boston area and want to sign up for a teach-in, email Christ Sturr: mailto:sturr@dollarsandsense.org. EC has received requests for speakers in Chicago and Albuquerque. More in the next issue if these develop.

In NYC the URPE presence has been a combination of people signing up on their own, and a small group (Julio Huato, Paddy Quick, Chris Rude, Sara Burke and me) thinking about ways to involve URPE. This group has begun to schedule some open forums and teach-ins, and to look for ways to make URPE resources accessible to OWS. For past and future NYC events, at Liberty Plaza and Washington Square Park, you can look through these two calendars: http://www.occupywallst.org/

http://www.nycga.net/events/

NYC archived Listserv post on getting involved:

http://greenhouse.economics.utah.edu/pipermail/urpe-announcements/attachments/20111024/9d522c5f/attachment.txt

URPE steering committee member Jenny Brown and other reporters at Labor Notes have been covering OWS, particularly its connection to labor. It would be great to hear from participants in other parts of the country! See Sara Burke’s article in this newsletter for an in-depth discussion of OWS.

Resource Questions:

Who Creates Jobs? A woman working with a Queens community organization loosely affiliated with MoveOn.Org contacted EC with a general request for more fact sheets and short, clear informational pieces for use by activists. She also had a specific request: a fact sheet on whether rich people create jobs. This would be used to combat the current bombardment of mainstream arguments that rich people and their companies won’t create jobs without an assurance that their taxes will be low. A number of people responded to my listserv request for input, and several of us have been collecting information on job creation. The original question has given rise to a number of others: has anybody been creating jobs, either during the recession or during the past few decades; which sectors create more jobs and what is the net job creation; how do technological advancements and increases in productivity affect job creation; how much do taxes really affect investment decisions; how does the “race to the bottom” affect which countries attract investment. (Warren Buffet confirmed what we already knew – that profit is the determining factor in investment decisions – but tax breaks are one part of a package that lures companies to other countries.). This project is in progress.

Economics Resources for Children

A teacher from Bank Street School wanted economics resources for teaching children in elementary and middle school, and suggestions on integrating progressive economic concepts into classes on various commonly-taught subjects. This inspired an update of Economy Connection’s “High School” page. The page contains links to websites, reading lists and publications that can be used for students in grades 1-12, and some of these resources can also be used for popular education purposes. A few weeks later a man working on children’s curricula for Occupy Wall St. was looking for additional resources, and we exchanged links. Please send additions to this page to soapbox@urpe.org. HS page: http://www.urpe.org/ec/high_school.htm

Resources from the URPE Brooklyn Conference We are collecting supporting materials from panels that took place at the October 1 URPE Conference in Brooklyn, “The War on the Working Class.” This page is in progress. If you participated and have papers (pdf format please), web links, recordings, etc., please send them to soapbox@urpe.org.

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Editor’s note

This issue of the URPE newsletter is dedicated to information and analysis about the Occupy Movement. The pieces printed are what were submitted as of November 1st. Recognizing that this is a rapidly changing movement with new events happening daily, what is printed on the pages of this issue can only reflect the thought and involvement of URPE members to a certain point. URPE, as an organization, is a “big tent” with many perspectives encouraged and shared. Nothing printed reflects any official position of URPE, as that would be impossible to establish. The purpose of this issue is to capture the activities of URPE and its diverse membership in this exciting time. Please feel free to respond to the pieces in this issue, as well as submit your own contributions related to the Occupy Movement for print in our next issue. All submissions should be emailed to franceskboyes@gmail.com by April 7, 2012.

My hope is that everyone reading this newsletter is as encouraged and inspired as the contributors (including myself) are.

Hasta la victoria siempre!

Frances Boyes, newsletter editor

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URPE SC: The Role of URPE…

In URPE Internal on December 13, 2011 by juliohuato

The Role of URPE…

Dear URPE members,

Over the last years URPE has been launching a number of projects. The goal is always to increase URPE’s usefulness to the process of developing and promoting political economy. And the Occupy Wall Street and other “Occupy” events of the last months, which can be expected, with ups and downs, to deepen in the future, make URPE’s work more important (and arguably more satisfying) than ever.

URPE was set up to be as participatory an organization as its members would make it. We on the Steering Committee (SC) would like to get more feedback from “the URPE grass roots” on what URPE should be doing, on what would help URPE members and others in teaching, and in working for and fighting for social economic justice.

We heard from a number of our members at our Brooklyn Conference and yearly business meeting the weekend of October 1-2. Two meetings coming up in the next 3 months will bring together other URPE members, namely the membership meeting at the ICAPE conference in November and next year’s business meeting at the URPE at ASSA meetings in January.

To get as many clearly formulated ideas as possible on what URPE could and should be doing to develop and promote political economy (and not simply have a meeting where ideas are thrown out and float off into space) we invite URPE members to:

  • Present them at any future URPE business or membership meeting.
  • Write up their ideas at any time in a few paragraphs and send them to the National Office (urpe@labornet.org).
  • The SC will review all proposals. It will then do 4 things to make this an ongoing process of putting ideas into action.
  • The SC will post all proposed ideas of the Web site, and encourage all URPE members to look at and consider them.
  • The SC will spend part of its twice yearly steering committee meeting reviewing proposals made.
  • The SC will enter into dialogue with the authors of all ideas to discuss whether their ideas can be put into effect on the basis of our existing resources, or with the additional input of the authors and others who could be brought into different projects.
  • The SC will report at future business meetings on each and every proposal made, and on whether or not it can be put into effect.

The new activism that we are seeing today makes it ever more important for URPE to be an organization which promotes and develops radical political economy. URPE members are encouraged to share their ideas on how URPE can best do so.

This then is a call to begin now to share your ideas on what URPE can and should do. If you have any questions about this, please feel to contact Al Campbell directly at Al@economics.utah.edu.

- The URPE Steering Committee

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Chris Rude & Sara Burke: The Fires Were Already Burning

In Economics & Politics, Labor, U.S. on December 13, 2011 by juliohuato

The Fires Were Already Burning: An Occupy Wall Street Backstory
and Entreaty to Members of URPE
By Chris Rude (chris.rude@ciper.org) and Sara Burke (burkesara@me.com)

Ever since the occupation of Wall Street took shape on September 17th, there has been much speculation as to its origins—including the notion repeated frequently that Adbusters, the Canadian marketing-meets-politics magazine founded by Estonian WWII refugee Kalle Lasn, lit the spark of Occupy Wall Street with its call for a peaceful occupation. The marketing-savvy magazine certainly helped bring attention to ideas that a lot of New York City activists—working together and in parallel since the early winter months of 2011— had been advancing based on our efforts to occupy banks, to hold action assemblies and people’s town halls, and to occupy the streets near City Hall (in an occupation called “Bloombergville”). Bloombergville activists spent three weeks in June/July on the sidewalk around the base of the Woolworth Building, at the corner of Broadway and Park Place, to protest budget cuts, public-worker layoffs and other austerity measures threatened in the 2011-12 New York City Budget. Adbusters (and social media) reflected the spark from fires that were already burning.

We learned about this smoldering discontent with inequality and corporate capitalism on a cold day in late February when we joined up with US Uncut, a direct-action movement to expose corporate tax evasion/avoidance by creatively occupying their places of business, for their first New York action. We carried a homemade sign to the targeted Bank of America. On one side the sign had graphs of the average US corporate tax rate from 1947-2010. (It moved steadily down through the decades.) The other side showed average US corporate profits during the same period. (They moved steadily up through the decades, with only a 1-quarter crash due to the financial crisis in Autumn 2008.) Everyone who had come to give Bank of America hell was fired up about citizens’ occupation of the Wisconsin state capital to demand due process and freedom of expression and to defend collective bargaining. It was during a subsequent Uncut meeting in late March to plan future actions – a meeting held in a downtown union hall – that we discovered folks in the adjacent room organizing what they were calling “action assemblies” and “peoples’ town halls” as part of New Yorkers Against Budget Cuts. They had action assemblies percolating in all the NYC boroughs except recalcitrant, Republican-dominated Staten Island, where we live.

So we decided to see if we could light a fire on Staten Island, home to a huge number of unionized workers—firefighters, cops, teachers, nurses and public employees of all kinds—and with a punishing rate of foreclosures. Reaching out to a group of some 15 independent activists in the borough, some of whom had worked together before but never with this overall group, we found ourselves able to pull in people from the anti-war movement, rank-and-file unionists, representatives of social service agencies serving the elderly, homeless and immigrant populations, Democratic, Green Party and other political activists, students, teachers and economists (more than one!). We formed Staten Islanders for Realistic Budget Solutions (SI4RBS) and organized a People’s Town Hall in four short weeks that drew almost 400 people (from every zip code on the Island) and fed directly into Bloombergville.

Some in SI4RBS also went to meetings of the citywide May 12th Coalition, which made two crucial contributions to the movement: 1) homeless advocates’ strategy (sleeping on the streets as a form of protest), and 2) an influential report, “Pay Back Time: $1.5 Billion Ways To Save Our City’s Budget and Make the Big Banks and Millionaires Pay Their Fair Share” (which emphasized that over $1 billion of current subsidies, tax credits and special deals go to the big-six banks for jobs they have failed to create; it also pointed to tax loopholes for millionaires, hedge funds and private equity firms that should be eliminated for a more fair tax system; and it detailed all the ways in which the social safety net of the city could be cut, including which agencies would be affected and with heartbreaking stories from individuals). Our group’s chief economist (Chris) vetted the data in the report, presented to the group, and we agreed to endorse and promote it, along with independently researched Staten Island supplements. The experience was a crash course in the kind of “we-can-organize-ourselves, thank you very much, and don’t-need-outside-experts-or-organizers” autonomy that has blossomed in and been magnified by Occupy Wall Street.

We unfortunately missed the next chapter of this backstory. On August 2nd, with a looming debt-ceiling deadline facing Congress, we caught a flight to Berlin in the late afternoon, just as Bloombergville and New Yorkers Against Budget Cuts were holding a General Assembly at Bowling Green’s bull to plan for September 17th. When we returned to New York on September 7th, working groups were already in formation, and there was just time to hook up with the group of Spanish activists who were organizing the General Assembly’s Open Forum, which takes place now at 6pm nightly. Chris spoke at the wonderfully chaotic, first Open Forum—held just before the General Assembly on September 17th—on the fiscal crisis of the state.

Chris spoke again at the Open Forum a few days later, just before URPE’s October 1-2 Brooklyn conference, which helped to solidify relations and helped secure OWS participants to the conference. It was difficult to tear them away — their thirst for economic knowledge was that great. When Sara spoke at the Open Forum about a week later, on how long-term rising inequality destabilizes economies, and the role that trade unions can play in stabilizing the economic system, the crowd of 30-40 people asked penetrating questions: how can collective bargaining be strengthened? What is the potential for organizing debtors to collectively bargain down their loans? How do institutions like central banks and the IMF work in the US and the global economies?

By the time you read this newsletter, we’re sure many of you will have joined forces with the Occupy Movement in some form or at least have stopped by your local Occupation to check it out. We urge you to actively participate. It has been astounding to watch mainstream media struggle to explain where the movement comes from. The fires have been burning here and there for some time, and those involved are educating and organizing with the intent to create serious change. If our political economy is indeed radical — penetrating to the core of how things work — we can and should assist them. Speak at an Occupation. Organize a teach-in by joining one of its working groups. Create an open university. Write a policy brief or a working paper. Engage in hard-hitting, politically relevant economic research. Knowledge is a weapon.

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URPE Supports Occupy Wall Street

In Economics & Politics, Labor, U.S. on December 13, 2011 by juliohuato

URPE Supports Occupy Wall Street
By Paddy Quick (paddyquick@aol.com)
Member, URPE Steering Committee
Written on October 23, 2011

The initiative of a small group of New Yorkers served as a catalyst which ignited a wave of protests in New York and across the US. The level of militancy in the US is far lower than that of the protestors in Europe and elsewhere, but they too have been encouraged by Occupy Wall Street (OWS). The Great Recession led to an acceleration of decades of attacks on the US working class, but at last we are beginning to protest.

The OWS activists are mostly starting from scratch to build a new movement. There are, of course, many organizations, from the Democratic Party to Workers World, who are looking to add members from among the occupants of Liberty Park/Zuccotti Park. But the movements of earlier decades left few significant mass organizations, and the organizations that do exist played no role in the start of OWS. The overwhelming impression that comes across when listening and talking to the OWS people is their insistence on the importance of the participation by each and every individual in decision-making, rather than on finding ways to participate in current organizations. The General Assemblies that take place every evening at 7 p.m. are structured to be models of democratic participation that aim at decision-making by consensus. People can register agreement by waving fingers upright in the air, or dissent by waving fingers downward. (This allows for discussion to continue without being disrupted by either applause or “boos.”) Extreme disagreement, which means a person’s unwillingness to continue to be a member of Occupy Wall Street if a proposal is adopted, is shown by crossing one’s arms.

The Park itself is fairly small and very crowded at times, particularly at the end of the workday. There is always a lot going on, in addition to the many one-on-one conversations. Anyone can draw people into a crowd to listen to an unscheduled talk by calling out “Mic [microphone] Check.” This is a signal for people to serve as collective substitutes for the loud-speakers which are banned by New York City. The speaker calls out a short phrase, e.g. “Wall Street today,” and those who can hear what s/he says repeat it loudly, “WALL STREET TODAY,” and so the rest of the talk continues. Thus those who are not close by can “hear” the speaker. It is a low-tech solution to a big-government regulation. There are many talks given every day, including some by URPE members. The quality of the talks and discussions is often higher than those that take place in “traditional” colleges. There are also speeches by people who could be described as “eccentric,” but this is not only expected but welcomed as an indication of the openness of OWS to new ideas. At the same time, some ideas are not welcome. When Geraldo Rivera came to visit, his words were drowned out by chants of “Fox News Lies.”

The goals of OWS cannot be summarized in a single phrase. The media often characterize the protestors as opposed to “corporate greed,” but this is only a part of what motivates people. The one concept that seems to unite people is a commitment to democratic decision-making. But the activists are not simply registering their opposition to being “co-opted” by one organization or another, let alone becoming a support group for the Democratic Party. They are asserting the importance of new ways of restructuring not only production but also gender relations, and proclaiming the possibility of a new society. Some see the need for minor reforms, some for major reforms and others for revolution. Collectively, they are committed to democratic discussion. This is very frustrating to the ever-present media folks who are reduced to selecting quotations from the many interviews they carry out with individuals and trying to present them as “representative” of the ideas of OWS. The mainstream media are also enamored of the “celebrities” who visit Liberty/Zuccotti Park. While OWS welcomes everyone who comes to the park, it does not assume that the ideas of the well-known are more important than those of others.

The movement is new. It is hard now to remember that Occupy Wall Street began only on September 17, 2011. The organizational tasks within OWS are enormous but people are coping well with them. Supporters email in orders for pizza deliveries to the well-organized food station in the center of the park. Spanish-English translation is available and a library (for both adults and children) functions well. But sanitation is a problem, and local restaurants which provide facilities are concerned. When Michael Bloomberg (Mayor of NYC and, incidentally, the 13th richest person in the United States) asserted that the need for improved sanitation in the park required the successive “clearing out” of sections of the park, OWS organized a systematic cleanup that impressed even jaded New Yorkers, and Bloomberg had to back down. The incidents of police brutality and mass arrests have, overall, led to an increase in support for OWS, while the New York City police are reportedly divided between those who support and those who oppose OWS. The park itself is a “privately-owned public park,” established as part of a 1968 deal on zoning regulations in return for a relaxation of regulations for a new office building, and named Liberty Park Plaza. (Its name was changed to Zuccotti Park in 2006.) This means that, unlike city-owned parks, it must be open to the public 24 hours a day, although some “regulations” (unspecified) are allowed.

The October 5 march brought together major New York City unions in support of Occupy Wall Street. The marchers included many more African-American and Latino people than were typical of the OWS occupants. The signs they carried were typically pre-printed, unlike the varied and creative hand-lettered signs that abound in Liberty Park. The “cultural” gap between their participation and that of the OWS occupants was significant. Unions in the US, despite significant limitations, provide vastly more opportunities for democratic participation than our major political parties. But there is a strong affinity between OWS and union members, and regular discussions take place between them. On Thursday, October 27, for example, Wal-Mart workers are scheduled to talk about their struggles. Other demonstrations have also originated in OWS such as the October 15 occupation of Times Square and the Saturday student-focused protests in Washington Square. There have also been significant demonstrations at the businesses and homes of prominent corporate executives.

The protests are spreading, and, perhaps of even more significance, so is the legitimacy of protest. On October 21, Parents Support Occupy Wall Street organized a sleep-over in the Park. The same day saw a national set of demonstrations by Afterschool Alliance in support of after-school programs. About 70 elementary school students, with their teachers and parents, stood in front of Brooklyn’s Borough Hall chanting “Lights Out Afterschool,” while passers-by applauded them as yet another group of demonstrators.

Fall is here and it is getting colder. The city has banned the installation of tents in the park, so people are sleeping under tarps. The city is hoping that it will not be necessary to remove the occupants of Liberty Park by force and that instead the winter will bring an end the occupation. But cold weather cannot stop the movement. Meantime, as OWS-inspired protests grow around the country, so too do the challenges of coordinating this mass movement to confront the centralized power of the state. The creativity of the protestors in their use of 21st century technology promises new approaches. Meantime, the OWS people and the millions who are joining them can be counted upon to find their own ways to continue the movement they have ignited.

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Ed Hamilton on Occupy Wall Street #ows

In Economics & Politics, International, Labor, U.S. on October 27, 2011 by juliohuato

Hello,
I suppose that this is a ‘system-cleaning’ opportunity, if acted on — so I figure it to be of interest to you all!

Roaring truth:  Condemn venal journalism for severely fooling the people
http://occupywallst.org/forum/condemn-venal-journalism-for-severely-fooling-the-/

I reckon that the main enabler of asset price bubbles (very harmful!) is keeping the real price histories out of sight.

Sincerely,
Ed Hamilton
Ph.D., Chemistry

PS  Environmental side effect …
Please see the third Comment following the no-need-to-read article:
http://blogs.nature.com/climatefeedback/2007/12/eyes_of_the_world_on_bali_1.html
Lots of environmental issues are not intellectually simple, and commonly there are two or more sides offering ‘facts’. So, it seems obvious to me that the big-time fooling of the people about their asset pricings is the enemy of rational progress for many issues.

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On radicals and economists*

In Economics & Politics on October 8, 2011 by juliohuato

It will sound strange, but economists as a crowd are — just like the rest of us — human beings crushed by the existing social order.  Since their role as the secular priests of capitalism is to rationalize the status quo, then they are crushed twice.  Not that they will get much sympathy from us for it, but they are crushed by the social order and — on top of that — they are crushed by the crippling belief that markets embedded on a ground of social inequality constitute the best of all possible worlds.  Economists suffer the fate of a person who not only believes in gravity, but who also believes that his body is so heavy that, over time, he’ll suck himself inwards and turn into a black hole.  Needless to say, it will not be easy to persuade this fellow that gravity can be defied and that, with the assistance of certain props (e.g. an airplane), he could even fly.

Like the rest of us, the economists are full of… false consciousness.  It is worse in their case, because they are very actively and joyfully producing and reproducing all that… false consciousness.   But we know that false consciousness is not a bunch of illusions lodged in our heads for no particular reason, but illusions and confusions that the existing social order fosters, reinforces, and turns into a crusty objectified social reality — again, because it justifies the social order and thus helps to perpetuate it.  As these illusions and confusions harden as social objects, we cannot dispel them by simply changing our minds individually.  Instead, we need to uproot them through collective action, by overthrowing the social order and building a new one.

Needless to say, the emancipation of the economists will be the work of the economists themselves.  But given their peculiar — complicit, in fact — situation they will need much help from the rest of us.  More like tough love, but tough love is a form of help.  Yet, one may ask: Is that a good use of our conscious time (and what is a human being’s ultimate scarce resource, but the conscious part of our brief stay on earth)?  So, should we spend our dear short lives trying to help the economists liberate themselves?  Well, let us think like mainstream economists, i.e. selfishly.  What is in it for us, who radically reject the status quo as antithetical to the preservation and development of our humanity?

Personally, I have spent a serious chunk of my life studying the ideas, the mode of thinking, and the behavior of this strange sub-species, so you won’t be surprised with my answer:  Yes, I believe it is worth the time of at least some of us.  By way of an analogy, let me explain to you why there is much in it for us and what we can obtain as a result.

But, before I do that, I shall connect my remarks with other things discussed in this conference.  Yesterday, David Howell recited the famous Keynes’ quip about the imagination of politicians being trapped by the ideas of deceased “academic scribblers.”  We know that ideas become a material force when they grip the minds of people.  That the ideas of dead and living economists have become a material force is hardly controversial here.  Today, Chris Rude alluded to the significant role that economists play in the management of the state, central banks, international organizations, etc.  The analyses that back up the policy proposals under consideration by town councils, congresses, governments, and international organizations are invariably couched in the language of economicbenefits and costs.  Large portions of the public itself channel the prejudices of dead economists.

Charles Darwin showed that all vegetable soil was poop from worms, i.e. that all vegetable soil had gone through the digestive system of worms at least once.  Similarly, all economic policies that we now see crystallized into hardened and oppressive social conditions, all economic policies that the powers-that-be implement, often with catastrophic consequences for the rest of us, are the intellectual poop defecated by a certain sub-species of human worms.

I am not saying this just to offend the worms gratuitously: without worms agriculture and the food on our tables would not be what they are.  No, I am saying it to reinforce David Howell’s point yesterday about the momentous importance, the consequential nature, the life-wrecking character that the ideas of economists have in the real world.

But saying bad things about the economists is not particularly controversial at a URPE meeting.  The next thing I will say may well be.  I’ll say that the ideas of the economists would not be as consequential, as practically important, in fact as harmful as they are, if they simply were a bunch of absurdities without connection to the society we live in.  No, the ideas of the economists — insofar as they have become a material force that shapes up or, more clearly, messes up our lives, have a certain connection to the society we live in.  Therefore, when we take a tabula rasa approach to rejecting economics, we sleight this connection at our own peril.

As an analogy to this, think of the production of weapons.  Military production is as constrained by the laws of physics, by technological possibilities, as the production of civil goods.  Therefore, to produce a modern drone or a piece of radioactive artillery, we need a certain mastery of physical laws, a measure of control over physical processes of incredibly subtlety and complexity, just like we need them to produce a truck to carry wheat or a CAT scanner for medical uses.  In fact, because our social order is antagonistic, because social conflict is oozed by our social order, the development of means of destruction leads the development of means of production.  In terms of sheer innovation, the production of goods lags behind the production of bads.  To a not insignificant extent, civil production progresses by its late adoption of technologies originally developed for military purposes.

I am not saying anything novel here.  Radicals in the past have noticed this: In Grundrisse, Marx says that, in the history of capitalism, “war developed before peace”; not only that the productive forces of capitalism were an adaptation of destructive forces that had been developed first to meet the needs of war-making, to enable primitive capital accumulation, but that the very social structures that characterized capitalism had been tried and tested first in the organization of the military.  So, not only — Marx noted in Grundrisse — mechanization developed first in war-making before grabbing and revolutionizing “the interior of bourgeois society,” but so did wage labor.

To repeat: the development of the forces of production under capitalism is largely a byproduct of the development of the forces of destruction.  Now, socialists are not trying to develop the forces of production of civil goods from scratch.  We cannot go back in time and prevent what already happened.  Instead, what we are trying to do is appropriate, take over, and then refit or transform the human powers that now exist to meet our purposes, which are the purposes of building the most peaceful, cooperative, and free society we can possibly build.

I think you all see where I am going: The economists, especially those occupied with the development of theoretical economics, lead in the production of intellectual weaponry under the guise of social science.  However, the production of socially destructive ideas abides by the same epistemological laws that regulate the production of constructive ideas.  To be less cryptic, I shall refer to the mathematical language in which a large chunk of modern theoretical economics is now recast.  This is what I view as the most encompassing trend in the field with regards to its abstract theoretical structure.  To be clear: I am referring here not to economics as it appears to us in undergraduate textbooks, but theoretical economics as it is being developed at the cutting-edge, a work that percolates into applied or policy-oriented fields like macroeconomics (let alone textbooks) with a several-year delay.

In its latest reincarnation, these destructive ideas are being recast in the framework of measure theory, the mathematical theory of measure spaces and measurable sets.  Set theory, particularly the theory of convex sets, as well as real analysis (the analysis of relations among variables whose values are real numbers) and optimization, which used to be among the most general frameworks used by the economists a couple of generations ago (e.g. in the development of general equilibrium analysis and its derivations), have been completely absorbed as pieces within the broader mathematical framework of measure theory.

The study of stochastic processes, which underpins much of the empirical research in macroeconomics and finance economics, used to stand separate from — if not at odds with — abstract economic theory.  But as things have turned out, the mathematics of stochastic processes, which resulted from the development of axiomatic probability theory, is precisely measure theory.  In the language of measure theory, random variables (a generalization of the notion of a variable to account explicitly for the shifting limits of one’s cognition) are instances of measurable functions over a peculiar algebraic space, while probabilities are measures, i.e. a generalization of the intuitive geometric notion of length.

But, aside from probabilities, the concept of measure is so general — and the mathematical results established in the field are so intellectually potent — that virtually every conceivable notion in economics (e.g. space, time, quantities, prices, etc.) can be all elegantly subsumed under it.  With the help of measure theory, probability theory being — again — one of its special cases, the whole mathematical paraphernalia that economists use today has now been placed within this new, unified mega-framework.

This is another one of Hegel’s historical ironies.  Although the rudiments of measure theory began with the work of Borel and Lebesgue in early 20th century’s France, Soviet mathematicians elevated it to higher levels of rigor and generality.  (Let me remind you here that, originally, the soviets — like Occupy Wall Street today — were emergent, vibrant civic structures that plain workers and soldiers in political motion during the 1905 Russian revolution forged to collectively direct the course of history.)  Building on those rudiments, and on the work of Russian mathematicians (e.g. Andrei Markov), the Soviet academic Andrei Kolmogorov developed the modern axiomatic edifice of probability theory, on which he built his analysis of stochastic processes.  Kolmogorov himself, as well as Vladimir Smirnov and a bunch of lesser known Soviet mathematicians built a spectacular edifice that, paradoxically, by this Hegelian historical twist, got appropriated by, among others, Western economic theorists, who then used it in the development of modern finance and macroeconomics.

The development of financial derivatives (nothing but pieces in the structure of capitalist private ownership over the productive wealth of our global society), spanning gigantic markets in which trillions of dollars change hands in a given day, hinged on methods of asset valuation that would have been unthinkable without these mathematical developments.  Now, turn around and look at the catastrophic effects that the deployment of these (Warren Buffett dixit) “financial weapons of mass destruction” unleashed on us!

I could suggest here a few of the multiple ways in which, I believe, the apparatus of measure theory and critically re-engineered insights from modern economic theory could be redeployed to illuminate and confront challenges facing the historical construction of socialism.  But that is a topic better left for another conversation.

I shall close my remarks now by saying that, in my view, the ultimate task of radical economists is, well, the expropriation of the expropriators.  But just like a thief who steals a car does not as a result become a mechanical engineer, we cannot limit ourselves to a superficial understanding and uncritical adoption of the “models” and “tricks” of mainstream theoretical economics.  I am not advocating for any sort of facile eclecticism — that  would be not only useless, but in fact dangerous.  No.  Our work is much more challenging: We need to grasp and understand the material as we make it our own.  We need to engage it, digest it critically, discard the elements of ideological rationalization lodged in it, and refit whatever useful is left to serve our purposes.  We need a true critical synthesis guided by the need to overthrow the social order and replace it with a society where the development of each is premise of the development of all.  The synthesis will be a richer radical understanding of social life.  And we ourselves will emerge changed: a more formidable revolutionary force.

* Presentation at the membership meeting of URPE, October 2, 2011.

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Open letter to John Weeks by José A. Tapia

In Uncategorized on September 14, 2011 by juliohuato

On the cost of catastrophes: Recessions are not into the league of wars, famines and pogroms

Hello John:

I liked very much your book on Capital and exploitation when I read it years ago. In the last two years I have been reading your blogs, which I find always interesting, though not always convincing. This time I want to comment on something you have recently written (2 September 2011). You say in a comment on the cost of natural and unnatural catastrophes that to match “the devastation, suffering and dead-weight loss of the Great Depression of the 1930s and the recent Financial Crisis, we move into the league of wars, famines and pogroms.”

I believe this is a quite misleading assertion. In general, to present recessions or de-pressions as social catastrophes as bad as wars, famines or pogroms is quite wrong. In all of the three aforementioned kinds of social disaster there are major losses of human life (in wars and pogroms as a direct consequence of human voluntary actions, which adds moral perversity to the numbers). I am not going to deny that recessions cause a lot of suffering. Millions get unemployed, which in spite of Lucas et al. is an involuntary situation that makes very unhappy to those who suffer it. Savings may evaporate as consequence of bank failures (as happened just a few years ago in Argentina), homes are lost when mortgage payments go unpaid, and many business, mostly small businesses, go bankrupt. All of that is quite ugly.

However, to compare all the ills of an economic business cycle downturn with “wars, famines and pogroms” in which thousands or millions are killed is quite improper. Indeed, statistics of population health as measured by the major health indicator, the mortality rate, reveals that it is the movement of the economy from recession to expansion what generates phenomena which are “into the league of wars.” Let me explain.

According to estimates by Christopher Ruhm (“Are recessions good for your health?”, Quarterly Journal of Economics 2000) in the US each percentage point decrease in the unemployment rate translates into a 0.5% increase in mortality rates. Considering that in the US there are some 2.4 million deaths per year, the mortality effect of a macroeco-nomic expansion would be about 12,000 more deaths per year and per percentage point decrease of the national unemployment rate. That implies that an economic recovery in which the unemployment rate would fall from the present level, around 9%, to 4% (an achievement that many would consider a major victory over the forces of evil), would be associated with some 60,000 extra deaths (that is 12,000 times 5), which is of the order of magnitude of the US death toll of the Vietnam war.

I have written in Proceedings of the National Academy of Sciences about the evolution of health in the United States during the 1920s and the 1930s. Considering the statistics on death rates, it was the so-called “Roaring Twenties” rather than the depressed 1930s which actually were “into the league of wars.”

During the early 1930s, when the economy was quickly contracting, there were major decreases in death rates, for the population at large and, particularly, for African American males. When the economy recovered in the mid-1930s, mortality rates dramatically increased, to fall again during the so-called Roosevelt recession of 1938. During the period 1922-1929 life expectancy at birth (measured in years) for the US population oscillat-ed without a clear trend around 60 (which means that mortality rates were also oscillating without a clear trend), while life expectancy of African American males dropped in the same period from 52 to 44 years (which means mortality rates were strongly increasing in this population group). In spite that Lord Keynes referred to the period 1924-1929 as a “wonderful outburst of productive energy”, the aforementioned statistics show that in the United States the “Roaring Twenties” was a period quite harmful for some popu-lation groups and without any progress for population health in general. All throughout the period 1920-1940, each recovery of the economy was also an upturn of death rates. Conversely, mortality declined dramatically when the economy went into recession. That was also what happened during the whole century in the United States. Research by myself or others shows the same oscillation of mortality, upward in expansions and down-ward in recessions, in other countries (including Germany, Sweden, Spain, Japan, Argentina, Mexico and the OECD countries taken as a panel) during macroeconomic fluctuations of recent decades. Some of this research is still controversial, but in the case of the United States the weight of evidence seems overwhelming. Expansions are associ-ated to upturns in death rates.

The view that recessions or depressions are the major or perhaps the only problem of our “free enterprise system” was largely linked to the emergence of Keynesian economics. It was a movement toward reality, after decades in which recessions and depressions were seen as just “residues” unexplained by economic theory, as in the famous Essay by Lionel Robbins. But looking at economic slumps as the major or the unique problem of our society and economic system reveals a very limited scope which is not supported by the evidence. It has a lot to do, however, with the perspective of the business community. Writing on business cycles in 1941, Wesley Mitchell noticed that in a money economy “the quest for money profits by business enterprises is the controlling factor among the economic activities,” though, at times, to avoid bankruptcy is the major goal. However,

to make profits and to avoid bankruptcy are merely two sides of a sin-gle issue—one side concerns the wellbeing of business enterprises under ordinary circumstances, the other side concerns the life or death of the same enterprises under circumstances of acute strain (Business cy-cles and their causes, University of California Press, 1941, Preface).

Since the views of the business community are the views that predominate in our society, it is not surprising that periods in which the economy is “under circumstances of acute strain” are viewed as the worst of all evils. However, in some major aspects, particularly in the ability of our economic activities to enhance or to damage population health or the environment in which we live, expansions are indeed much worst than recessions. Of course, wars are much worse than any of the former. If there was something really bad originating from the Great Depression of the 1930s, it was the World War that fol-lowed. However, some see the war as a great time, because it brought back full employ-ment.

There is a saying is Spanish, las comparaciones son odiosas, comparisons are hateful. Yes, indeed, they can be.

José A. Tapia
Institute for Social Research
Ann Arbor, Michigan
September 6, 2011

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Jullie Matthaei’s speech in support of Wisconsion workers

In Uncategorized on February 27, 2011 by juliohuato

Wisconsin workers protesting

This is a speech I delivered at a rally in support of Wisconsin workers on February 24, 2011, at Wellesley College, where I work.  I helped organize the rally and urge my URPE colleagues to do the same on their campuses, and post information about their rallies to URPE.

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It’s absolutely wonderful to see and be with all of you who have taken time out of your busy lives to come here today and stand with the Wisconsin workers.  Over the past few weeks, thousands, even millions of people, from the Middle East to the Middle West (as John Stuart calls it) are waking up, facing their fears, speaking out, taking a stand.  I am so proud to see that Wellesley “represents” in this movement

Why are we here TODAY?  What are we “representing”?  We are here today to stand in solidarity with Wisconsin workers.

What is happening in Wisconsin?

If you listen to Fox news, or read much of the mainstream, corporate controlled press, you will be told that the State of Wisconsin is suffering from a budget shortfall due to the recession, and has to cut the pay and benefits of the workers it employs.  You will be told that it is only fair that the public sector workers there be stripped of their high pay and free health benefits — benefits that other workers don’t and can’t have.

Actually, though, if you dig a bit deeper, you will find that the State of Wisconsin is not facing a looming budget deficit.   You will find that the public sector workers are paid, on average, less than private sector workers in the state.  And you will find that they have agreed to all of the pay and benefit cuts that Governor Walker has proposed.

So what is left to fight over?

Wisconsin public sector workers are protesting because Governor Walker now wants to pass a bill which would take away their right to collective bargaining.   Essentially, he wants to take away  their right to form a union.

The Right to Collective Bargaining:  Key to Worker Well-being and Dignity

As an economist, let me take a minute to discuss why the right to collective bargaining is important.

How many of you have taken Econ 101 and learned about the laws of supply and demand?  What tends to happen to wages when there is excess supply of workers, or unemployment?  You’re right, WAGES FALL.  Why do wages fall?  Because, when there is unemployment, jobless workers who need jobs to survive begin to compete with other workers and with the unemployed for scarce jobs by offering to work for less.

What does this do?  It lower wages and benefits, and worsens working conditions.  It makes all workers worse off.  Wages can even fall below the poverty level, as  they have across the world and even have in many sectors of the US labor market.

What can workers do to reverse this self-destructive trend?  Well, some economists suggest that they could quit if the wage got too low, as suggested by the upward sloping labor supply curves you are often taught).  Some can do this; one spouse can stay home and care for the children, and a couple can live on one salary; or a person can try to start a business; or set up a farm; or go to school to get a better education.  But most workers can’t do that, they have to work to survive, that’s why they’re called workers.  If anything, such workers have to work more hours, or send more family members into the labor force, when falling wages reduce their take home pay.   This increase in labor supply only exacerbates unemployment.

What then can workers do to keep their wages to fall to starvation levels?

They can stop competing with one another, and instead get together and form unions.  Refuse, collectively, to work for their employer unless they are offered acceptable wages and working conditions.  As union members chanted in Tuesday’s demonstration at the State House, “United We Bargain, Divided We Beg.”  Collective bargaining is what a union does; eliminating it is nothing less than union-busting.

This is what is at stake in Wisconsin, and around the country.

If unions lose their right to bargain collectively – workers lose their ability to have a say in the determination of their wages and working conditions.

Wages and working conditions will deteriorate…around the world….

as they already have been, as attacks on unions intensify, and global corporations force workers across the world to compete with one another for jobs by cutting their wages and benefits..

Workers who are unionized know this – and that is why they are standing up in wisconsin, in indiana, in ohio – and all over the country, for their rights and in solidarity with the workers under attack.  These workers need our support!!!!  That is why we are here!!  As the union chant goes, “Workers’ rights are under attack.  What do we do? STAND UP, FIGHT BACK!!

This is about democracy…

One final, but important point.  The struggle in wisconsin is not only about worker rights.  It is also about democracy,

Most Americans enthusiastically supported the Egyptian peoples’ nonviolent revolution against dicator Hosney Mubarek, as a pro-democracy movement.

Well, the protests in Wisconsin, Indiana, Ohio, are also a pro-democracy movement.  Why?  Because the attack on Wisconsin workers is vehemently anti-democratic.

The behind the scenes story about Wisconsin is truly upsetting.  Independent journalists have uncovered the fact that Governor Walker is part of an organized war on worker rights, which is planned and waged by the super-rich Koch brothers.   The Koch brothers, who are each worth over $17 billion and are tied as the fifth richest men in the U.S.,  are trying to use their wealth to buy political power throughout the U.S.

  • They were involved in obtaining the Citizens United Supreme Court decision, which gives corporations unlimited rights to buy political influence through campaign contributions.   The citizen’s organization, Common Cause, has discovered ties between them and Justices Thomas and Scalia.
  • They are a key funder of the “grass-roots” Tea Party Movement
  • And their PAC was the second largest contributor to Governor Walker’s campaign, and is bankrolling an ad campaign now to support him in this struggle.

Essentially, instead of Mubarkek vs. the Egyptian protestors, it’s the Koch Brother Billionaires against thousands of Wisconsin workers and students!!!

The money of one side, against the numbers, determination, and principles of the other side.  By being here today, we are throwing our weight on the side of the protestors, on the side of their democratic rights to pass laws that benefit the people, not the Koch brothers already enormous fortunes.  We are struggling for democratic rights here on the streets of America, right here on the steps of Jewett at Wellesley College, like the protestors in the Middle East!!!

We in the US are learning something about democracy that we haven’t been taught in our textbooks.  Democracy isn’t just voting every four years.  In  fact, when wealthy people corrupt the political process,  they can dictate our electoral choices and buy out our politicians.  This isn’t democracy.

Realizing that electoral democracy can and has been corrupted in this way,  activists are beginning to call for a new kind of democracy, participatory democracy.    This means active participation in the process of creating the economic and political practices and institutions that govern our lives, that create our society – so that they reflect core American values of freedom, democracy, justice, sustainability.

Students are the Spark…

How many of you here are students?  It’s a clear majority.  Go students!  You students have a most special role and responsibility in this struggle to revitalize and regain true democracy, here and across the world.  All over the world, and all through history, students have been the spark that ignites movements for democracy and justice.  You can be that spark.  Be the kind of Wellesley woman who really makes a difference, as these banners call for —  not just any kind of difference (like a big contribution to the Koch’s billions!), but a positive, life-affirming, earth-saving difference, the kind of differences that our world sorely needs at this moment, the kind of difference that the Wisconsin protestors are clamoring for, that the Egyptian protestors begun to achieve, and that Libyan protestors are dying for.

I would like to end my speech with a great chant used since the famous Seattle demonstrations of 1999 against the WTO, “This is what democracy looks like, this is what democracy looks like….”  Yes, this rally at Wellesley, bringing together students, staff, union, and faculty in support of the Wisconsin workers, and of all of our rights, is what democracy looks like!

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The Great Recession and the Deficit by Paddy Quick

In Uncategorized on January 27, 2011 by juliohuato

The Great Recession will take a long time to come to an end. Even the most optimistic forecasters expect the official unemployment rate in the US to stay above 9% through 2011, and it may be 4 or even more years before we get back to the same level of employment we had before the recession began. The arguments I want to make are (1) that we should not fall for the line that “we,” i.e. workers, need to cut back to get out of this recession and (2) that propaganda about the problems of the deficits is being used to justify a multi-pronged attack on the standard of living of working families.

You don’t need me to go over how bad things are for working people, the working class. And I’m not going to review what led to the Great Recession, other than to say that recessions are regular occurrences in the capitalist system in which we live. (Oh dear, a “bad word” – “capitalism” – but we’re all adults here, and the time for euphemisms is long past.) This recession is indeed the worst since the Great Depression of the 1930s, and it resembles it in both its probable length and its international character, although the decline in production and the level of unemployment are less than then.  It is, however, in some ways, potentially far more serious and likely to have a far worse long-term effect.

Here we come to the key feature of today’s Great Recession – namely the multipronged attack on our standard of living. This attack comes in several forms and it is important to understand all of them:

  • The first, and most obvious, is actual reductions in wages. Even corporations that are profitable are brazenly cutting wages for the simple reason that they want higher profits. The threat to move production within the country or to other countries can force even strong unions to take substantial cuts. Other people, such as federal government workers, are seeing wage freezes, despite continuing (although mild) inflation. More common, but less in the news, is the slow process through which the unemployed who do manage to get new jobs do so at reduced wages. Even less well publicized is the process through which starting wages, for people getting their first jobs, are lower that the wages of the people hired into the same jobs in previous years.
  • The second form of attack is on the government programs that go to benefit the working class, and in particular Social Security and Medicare, the so-called “entitlement programs” i.e. programs that do not require fresh appropriation votes in Congress on an annual basis. Here the government is playing the old game of asking us whether we would prefer to cut benefits or raise taxes, rather like asking us which arm we would prefer them to cut off.  A growing economy (and it will grow again when the recession is over) can easily provide for the health and well-being of its residents, but the cuts, once made, are extremely unlikely to be restored when the recession does end. And, despite the government’s lip-service to the importance of education, local government employment in education in December 2010 was 463,000 less than in December 2009.
  • The third form of attack is on the poor, and I don’t mean simply that the people at the lower end of the income distribution suffer more from all the program cuts than everyone else, although that is true. I mean that the attacks are making the lives of those who are unemployed, and those who fall into poverty for this and other reasons (such as serious illness), more and more miserable. This weakens the working class as a whole. Unemployment is becoming more and more of a threat to those who do hold jobs, and fear of unemployment makes those who are employed weaker and weaker when it comes to fighting pay cuts and resisting increases in workloads. Being unemployed in the US is terrifying. Even a short spell of unemployment can do considerable damage, and longer spells destroy lives. The cuts in the funding of Medicaid (as distinct from Medicare which is for the elderly and disabled) are particularly severe.  And of course President Clinton long ago ended “welfare as we knew it.” There are massive holes in our “safety net,” and far too many people are falling through it. It must be said here that this is one of the many areas where racism is deadly. It is of increasing importance to confront the widespread racism which leads many white workers to believe that somehow the massive poverty in the Black and Latino communities is due to their inadequacies, and that such poverty will, therefore, never happen to “fine upstanding (white) workers like them.” Thus racism can and does lead some workers to actually support cuts in programs such as Medicaid and subsidized housing that are limited to those with low incomes.
  • The fourth major form of attack is of a different nature. It takes the form of attacks on the ability of workers to organize.  The percentage of workers who are unionized is now below 12%, and the percentage of unionized workers in the private sector is only 7%. The more heavily unionized public sector workers are seeing attempts at the state level to withdraw their right to collective bargaining. (This attack is combined with the attempt to reduce the public services that they provide, which is in turn presented as a way to reduce taxes on workers.) There are movements underway in at least seven states to pass “right to work” laws which would forbid unions to collect dues from all those that they represent. For those who are not unionized, the quickest way to join the ranks of the unemployed is to be identified by management as “likely to try to form a union.” On a national level, the control of our government by the capitalist class is hardly limited at all by the working class – the capitalists, as they say, have two parties and we don’t even have one.

Let’s compare what is happening in Europe with what is happening here. In Europe the “safety net” has long been far, far stronger than in the United States. Universal health care, paid maternity leave, unemployment benefits that are very generous by US standards, far higher levels of job security… the list could go on. These have been coming under attack for many years, often in the form of the promotion of what the IMF and others call “labor market flexibility” – a code phrase that can translated as “reducing the power of workers.” But the attacks are taking place in a new and much more virulent form today. In response there have been massive protests and general strikes. European workers are vigorously defending their standard of living.

In the US, in contrast, there has been very little protest. In fact a recent poll showed that, when people were asked about whether higher taxes “on people like you” were necessary, 41% said they were. And 55% believed it was necessary to cut back “government programs that benefit people like [them.]”   Why do people believe this? The short answer is that they have been scared into this by those who cite the need to cut the government’s deficit and its debt.

So let’s look at this. People understand debt all too well from their personal experience, including those whose homes have been foreclosed. One in five of all homes with mortgages are “under water” i.e. people owe more than their homes are worth. And of course those who are unemployed quickly run up additional debts. But government debt is very different. In the first place, the US government can always borrow what it wants because it can pay the lenders back with money raised by taxes. But more importantly, when the government increases its spending or allows households to increase their spending by cutting taxes, the increase in spending leads to an increase in production and employment.  Thus the increase in the government’s debt, unlike any increase in the debt of individuals, has the effect of putting idle labor (and idle plant and equipment) back into production.  Then, when the economy is back at full employment, it can pay off its debt by increasing taxes, or reducing spending without damaging total production.

It is useful to distinguish between the short-term deficit and the issue of long-term debt.  The deficit always increases during a recession because tax revenues fall and expenditure rises (for example on unemployment benefits).  But in a serious recession like this one, a government stimulus program (consisting of increased government spending and cuts in taxes either or both of which increase the deficit) can pull the economy out of the recession. In order for tax cuts to work, however, they have to go to the working class, because this is the only form of tax cuts that leads to increased spending. The very rich (who are of course capitalists, because you don’t get rich by working!) barely alter their spending.  And giving tax cuts to corporations does not lead to increased spending. Corporations aren’t going to carry out new investment by buying new machinery and building new factories and office buildings, as long as they have some of their offices half-empty, much of their machinery sitting idle, and their factories shut down. So that leaves government spending as a way to stimulate the economy. One step desperately needed is the transfer of federal money to states and local governments, but we hear little about this.  President Obama, in his State of the Union address, spoke instead about government “investment” i.e. spending money in ways that would benefit private corporations. (Food for the hungry and housing for the homeless aren’t considered “investment.”)  But the amounts proposed were small, and Obama proposed a “freeze” in federal spending when in fact more, rather than less spending is needed. The disagreement between the Republicans and the Democrats is over how much to reduce the deficit, not on how much of a deficit-increasing stimulus we need.

The capitalist class is taking advantage of this Great Recession, both here and in other countries, to reduce the standard of living of the working class and thus increase its own income, in the form of profits and interest. We need to understand that even a long recession can eventually be “profitable” if it can accomplish that, and big capital thinks long-term. Thus it is not at all clear that big capital even wants to end this recession quickly. Instead, it seems to see this as a wonderful opportunity to make long-term gains at the expense of the working class. To see this we need to look more carefully at the role that recessions play in the development of capitalism.

It is during recessions that weaker capitalists fail and the big corporations take over their markets and grow ever bigger and ever stronger. Then, as this happens, they start investing again and the economic recovery begins. That is how the relatively mild recessions in the post-world War II period have generally come to an end. Recessions also keep down wages, and this is also good for profits.  But reducing wages is usually a relatively slow process, and the short recessions which have taken place since World War II have not made much of a dent in wages. [In the US, of course, unlike in Europe, wages have not increased even during the good years. US wages today, after allowing for inflation, are no higher than they were 40 years ago. (Check it out online: Economic Report of the President, 2010, Table 47.) This is the basic reason for the fact that the share of income going to the top 1% of US households has more than doubled between 1979 and 2007.]

In Europe, the better-organized working class managed to keep wages growing in the post WWII period. Minimum wage in Ireland, before Ireland fell victim to the crisis, translated into above $13 an hour!  Now the European workers, like us, are taking pay cuts, sometimes very large ones. Latvian government employees took a 50% pay cut. But this is because it is a Great Recession, and is lasting a very long time.  A lengthy recession is capable of doing much more damage to wages than a short one, and major sections of capital are therefore in no hurry to end the recession because of this. Of course, when the recession does end, there is no reason on earth to expect corporations to “give back” the cuts they have forced on us. Instead, they can look forward to permanently higher profits as a result of the recession.

The issue of long-term deficits is a different one. The projections of federal government revenue and expenditure if no changes are made in either our tax structure or in government programs undoubtedly show a growing gap between the two – hence the received wisdom says this is a major long-term problem that will continue to exist when the recession is over. It may sound flippant, but the solution to this problem is really very simple – tax the capitalist class and cut back expenditures on the wars and other programs that benefit them. (In the United States in the 1950s, hardly a heyday of liberalism, the top tax rate on personal income was 91% – a quite reasonable figure and perhaps we should go back to those “good old days!”) The capitalist class’s proposed “solution” is, not surprisingly, to increase taxes on the working class and cut back the programs that benefit us. Thus we need to look at the federal budget as a whole, and ask both who pays taxes and who gets the benefit of the government’s expenditures. Then we can look more clearly at the role of the federal government in the distribution of the wealth of our society between the working class and the capitalist class. It is not the projected deficits that are the “problem” but the very real intent of the capitalist class to use the federal government to further enrich itself.

Let me lead into my conclusion by looking at a recent decision by President Obama which has important symbolic significance – the appointment of Jeffrey Immelt, Chairman and CEO of GE as chair of a “Council on Jobs and Competitiveness.” Competitiveness, you may remember, was an important theme in Obama’s State of the Union Address. GE is a multinational corporation, which, incidentally, was helped by a $16 billion purchase by the US government of its short-term debt when it was in trouble. Over half of its workers are employed in other countries and over half of its profits are earned outside the US. Its “competitiveness” would be enhanced, and its profits increased, by lower wages in both the US and other countries. The word “competitiveness” needs to be translated as “lower wages.”

The “Great Recession” is providing the multinational capitalist class with the opportunity to launch a major assault on the standard of living of the working class in developed countries such as the United States and the countries of Europe.  Unlike previous recessions, the Great Recession is taking place mainly in the developed countries. Developing countries have not been greatly affected and production in those countries continues to grow far faster than in the developed world, although of course the workers there get to share in very little of this. Today’s multinational corporations are increasingly able to pit workers in the US and Europe against those in Indonesia, India and China. Of course in the long run, they would like to employ all of us, in all of these countries – but at lower wages. The problem cannot be understood as one of “outsourcing” – a continuous movement of jobs away from the US to other countries, particularly those with lower wages.  If this were the problem, unemployment would have been increasing steadily over at least the past 30 years, if not the last 200, rather than fluctuating around the 5% mark.  In fact the proportion of workers in the US employed by foreign multinational corporations is increasing – other countries’ multinationals are “outsourcing” jobs to the US, just as US multinational corporations are increasing their hiring of foreign workers!  No, the problem is the continuous effort of all these multinational corporations to lower wages everywhere.

Did we and other workers in developed countries really believe that we could, without a fight, continue to draw wages many time greater than those of equally intelligent, hard-working, and, today, increasingly, equally skilled workers in Asia and other parts of the world who are working for the same corporations that we are working for?  Corporations can, of course, well afford to pay us these higher wages (as they could afford to pay higher wages to workers in developing countries.) Obviously they are making a profit by employing workers in the US and other developed countries, or they would lay us all off!  But wages are not based on what the capitalists can afford to pay but on what the working class is able to make them pay. This Great Recession is making it clear, to those who look at it realistically, that the working class must be organized on a multinational basis in order to confront the multinational capitalist class if we are to share in the wealth that we produce.

Right now, the task in the US is a more limited one – we must recognize, and get everyone else to recognize, that there is no need at all for the working class to “cut back.” Doing so will only encourage further attacks on our standard of living, and prolong the recession. Instead we must ORGANIZE, ORGANIZE, ORGANIZE!  NO CUTS IN WAGES, NO CUTS IN PUBLIC SERVICES, REPAIR THE SAFETY NET, TAX CAPITALISTS, NOT WORKERS! END THE WARS!

Paddy Quick

January 2011

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