Tuesday, April 30, 2013

A Discarded World

Sunday at sunrise I saw a car parked in our parking lot along the dirt road, not far from houses and an equestrian center. A guy got out, did something with his leg, and then, as I approached, he got back in the car and drove off. There was someone in the passenger seat.

The driver had discarded something and its foil wrapper. He was probably proud of himself: it was an oversized used condom. On his way to church?

That pretty much epitomizes relations with our social, natural and international world. We trash the natural world, we trash each other; we also trash other nations: cancer has skyrocketed in Iraq because our depleted DU munitions litter the landscape. Our military is proud of them; they're more effective than lead or steel in penetrating tank armor. Who cares about the Iraqis?

Margaret Thatcher was known for popularizing a politics epitomized by: "Screw you, Jack! I've got mine." Our "conservatives" are less eloquent.

Sequestration was meant to force Democrats and Republicans to agree to something sensible, but the first adjustment insures that flights aren't delayed, so Congressmen and Senators can get home during their break. Meanwhile, cuts to Head Start, schools, health research, medical care, extended unemployment insurance and to so many other government programs cause far more damaging consequences: lives lost, children untaught, research not done, people driven homeless: long-term costs to everyone--except the wealthy.

And for what? Both the Alesina/Ardagna article on "expansionary austerity," and the Reinhart/Rogoff article positing the economic danger of a 90+% budget deficit--Economists' arguments promoting austerity--have been proven false, while real experiments with it in Greece, Spain, Ireland, the UK and Portugal have demonstrated its destructive effects.

I sent two of Krugman's anti-austerity articles to a fundamentalist friend; he refused to read them: said they were "all false," and "ideologies will never replace the wisdom and power of the Word of God." Facts didn't matter. To him, and apparently to a large contingent of Republicans in Congress, "debt is debt," an evil--except for Defense, or corporations, or mortgages, or….

My friend made money in California real estate, The austerian agenda makes sense to him: why should he pay for losers, driven homeless, and/or jobless by the burst housing bubble; he made money, so what's wrong with them?

People like him, and those much wealthier drive the political agenda. We don't live in a democracy; the powerful listen to the one-percent, not to the rest of us--except, maybe, the 5%. Our contemporary Roman Senatorial class has conquered. High unemployment benefits them: it makes workers compliant; bosses can cut wages and raise their own salaries: life is good.

It will last until either revolution or collapse, the latter from the instability inherent in extreme inequality; it contributed to Rome's fall in 476.

Sunday, April 21, 2013

Extreme Wealth Corrodes Democracy

The United States was, for a short time, a democracy, if only of white male property owners--much like early Athens. Counterrevolution began with the Constitutional Convention.

Democratic forces were predominant in other eras in the US, but they didn't last. There was the Democracy of Andrew Jackson and brash new western men. There was the early radical Republicanism of the Civil War. There was the Progressive era: the overweening power of the trusts was busted, at least temporarily. There was the New Deal, extending through the Great Society, in which government made it its business to extend equality and its benefits.

But each democratic era has been followed by a period of reaction and hardening elite rule. However, up until now, America has always had an upwardly mobile society: the son of the worker, farmer, or clerk becoming the new rich. And always before, the elite made way for them, even if they hated "upstarts" and "new money."

Today, class mobility in America is lower than in class-bound Britain; American society is becoming rigid and stratified--though no one will admit they are anything but "middle class." The difference between the new financial wealthy and everyone else has never been greater; CEO's are paid 100's or 1000+ times more than their workers, a greater margin of difference than other developed nations. Inequality increased even more rapidly after the so-called Great Recession and subsequent "recovery" under Obama's leadership. More than 90% of the gains since 2009 have gone into the pockets of the extremely wealthy, while unemployment hovers around an official 7.8% and is nearly twice that when counting workers who have given up looking for work.

The intransigence of conservative Republicans is not surprising, nor the timidity of Democrats: they both reflect the changing balance of power in the US. Unions have declined to single digits of the private sector workforce, and Republicans have sharpened their knives to eliminate the power of public sector unions, as well.

Meanwhile, state legislatures and Congress promote austerity, and cut programs benefiting the less affluent, while attempting to lower taxes and eliminate regulations that irritate the resurgent wealthy.

Why not? Politicians easily accumulate wealth from their connections. Anyone in government, even idealistic Obama staff, can legally line his/her nest by cooperating with the moneyed, our Roman Senators. None live in ghettos, or working-class neighborhoods. None see or hear the people who are hurt by the wealthy bias in media and politics.

And the media, largely owned by our Roman Senators, naturally reflects their bias; so even the poor tend to accept the agenda of the wealthy, insisting that austerity is necessary and even Social Security benefits must be cut.

This isn't just the swing of the pendulum; this smells like "takeover" by the very wealthy, like the Roman Senators' monopoly of power in Fifth Century Rome--before its fall.

Thursday, April 18, 2013

It's Not Working!

The vaunted American system of politics.

We have endemic and pervasive gun violence in the cities, and frequent massacres of innocents by crazies in the suburbs, and make it easier to buy and keep guns than any other "developed" country. And yet, the Senate can't even get to a vote on expanded background checks (supported by about 90% of Americans), because the murderous, corporate NRA cows most Republicans and enough Democrats.

Immigration reform may be stopped in its tracks for the same kind of reason: a small minority represented by a disproportionate number of Senators and/or Representatives, will try to block any immigration reform bill because, in this case, majorities in the South and the under-populated southern mid-section of the nation, are paranoid xenophobes.

On the other hand, Monsanto can insert special language in the Food bill, privileging GMO's, in what has been unofficially labeled "the Monsanto Protection Act." It passed and Obama signed it.

Finally, we have a Democratic President who won reelection championing defense of Social Security and Medicare, legacy programs of Democratic Presidents, but now he attacks them in the name of reform. Obama proposes to cut benefits through indirection: changing the price index used to calculate Social Security benefits, and by cutting payments to providers like doctors and hospitals, to "reform" Medicare.

Social Security does not contribute to government deficits: over the years, Congress and Presidents have borrowed trillions from its trust fund to pay the bills, and now it needs to be paid back. It has pre-funded the bulge in senior boomers, but 'bidness' wants to get its greedy little hands on those funds. Social Security won't need additional funding until the 2030's. Obama's "reform" is splitting his party, and he still won't get Republicans to support it.

A better case can be made for reform of Medicare/Medicaid: to make medical care more efficient. The US shouldn't spend double what other countries pay for comparable medical care. A restructuring is in order, involving what is paid for: patient outcomes, or discrete tests and hours; drug prices should be negotiated, not monopoly prices and hospital fees need to reflect medical needs, not business priorities. Maybe that's what Obama has in mind.

The most positive aspect of Obama's retrograde offer: Republicans will defend both programs in order to attack him.

It seems that only through the courts, sometimes, can progress be realized, as in the Pennsylvania Judge who found that corporations could not claim proprietary secrets for fracking fluid. How long will that "anti-corporate" ruling last?

The Supreme Court may attempt to sidestep the same-sex marriage issue, yet it boosted corporate power in Citizens United when that wasn't even the intent of the suit.

Who rules? The 0.1% and the corporations they own, whom I've labeled "our Roman Senators", like the Selfish Senators of 5th Century Rome. Their influence may be even more pernicious.

Tuesday, April 9, 2013

The Stalemated State



Lobbies, and the corporations behind them, block almost all change in the US.

Back in the 1830's, de Tocqueville rhapsodized about how the new United States had groups organized wherever he went. He saw it as the blossoming of democracy.

Now, however, organization itself is big business. Lobbyists in the thousands insure that the powers-that-be maintain their monopoly-oligopoly, their stifling of innovation that might threaten a lock on their markets--as well as a government that caters to their interests and therefore discriminates against smaller, more nimble competitors.

The IMF recently held that subsidies for traditional energy companies (oil, coal, gas) were holding back the move to non-traditional sources (wind, solar, bio-fuels). Still, even the elite-led demand for reducing government expenditures hardly touches on those subsidies: billions a year to companies making billions in profits. In addition, thanks to people like VP Cheney, drilling companies are largely free of regulation. We still don't know what poisons frackers inject into the earth in order to force out oil or gas, because that's a "proprietary secret." Pennsylvania even gives frackers powers of eminent domain!

Chemical companies (mostly petroleum based) are also protected. Smaller competitors attempting to replace toxic materials like styrene with bio-based non-toxic materials are stymied: the EPA is not allowed to declare styrene's known carcinogenicity, let alone ban it, and similar hands off treatment is SOP for a whole raft of other chemicals. In addition, Monsanto succeeded in inserting language in the new food law that virtually exempts GMO's from regulation. Meanwhile, the FDA can't require them to be labeled as GMO's, either.

Big Pharma protects its monopoly patents world-wide, but especially in the US, and Medicare/Medicaid is required to buy drugs at inflated prices (often 10 times a possible generic); no negotiated prices are permitted.

So, it's not surprising that Congress, after much effort on the part of gun victims families, gun control advocates, governors and even the President, may or may not pass the most minimal of gun control measures: universal background checks, despite 90% support for it in most polls. Gun manufacturers have organized the NRA and now the even more militantly "pro-gun" Gun Buyers of America, to lobby all their captive Congressmen against any regulation except for militarizing the schools with subsidized armed guards (creating another subsidized market).

The ultimate subsidized market is Defense. Corporate contractors still get cost-plus contracts, still get reimbursed even for hotel taxes in Maryland--and then, Lockheed has the chutzpah to demand that Maryland reimburse it, too! And that's in addition to the huge subsidy derived from US insistence on maintaining hegemony worldwide.

The US is truly a corporate state wedded to outdated technologies, corporate behemoths and the greedy class, our Roman Senators, who own them. Stalemate will doom it, unless it and the corporations are able to transfer their dominance worldwide. That's why the Indian decision against Novartis is so important: the sclerotic American Empire is losing control.

Friday, April 5, 2013

Bad Ideas

George McGovern endorsed a terrible book, The Promise of the Coming Dark Age: it saw the Cambodian Khmer Rouge as the great promise: our communitarian future, in which capitalism would be transmuted into abundance for all.

From 1975-1979, the Khmer Rouge murdered a larger share of their people than the Nazis or Stalin: virtually any non-Maoist with education, or anyone from the middle class and any city-dweller. Later, anyone not ideologically "reliable" was eliminated, as well. The total murdered were between 1.7 and 2.3 million out of a population of only 7 million: between a fourth and a third of all Cambodians.

The idea that attracted McGovern was the Khmer Rouge's advocacy for a communitarian (Communist) agrarian society that was supposed to be fully self-sustaining, and purged of all western influence or technology. McGovern, et al ignored the violence, the authoritarianism, the ideological rigidity and the KR's flight from reality.

Finally, Vietnam ousted the KR in 1979, but Cambodia has suffered famines and near social collapse ever since, unable to overcome the KR's nearly successful attempt to destroy urban Cambodia and western education.

The KR glorified their agrarian past, just as the GOP glorifies a Norman Rockwell view of "real America." Ayn Rand, their ideological guru, glorified the unrestrained entrepreneur stifled by big government. As politicians attempt to put her vision into practice, it might not be so bloody as the KR, but many more will be impoverished. Randism inspires Republican enthusiasm for the sequester, in which the poor and middle class lose the services they depend on, while a small elite benefit from the cuts through privatization and lower taxes.

Ever since Reagan broke the Air Traffic Controllers' strike, the corporate wealthy have successfully carried Republicans and many Democrats with them. Since 1980, income and wealth have concentrated in fewer and fewer hands. Disasters, like Katrina in New Orleans, and Sandy in New York, and the nationwide implosion of the financial sector in 2008, have accelerated the process. Wall Street was bailed out, but the country as a whole is still only slowly recovering. The vast majority of productivity gains and new wealth created since the implosion has ended up in the pockets of the wealthy; the banks that precipitated the crisis have gotten bigger and wealthier, yet last month only 88,000 private sector jobs were created. The nation needs at least 150,000 per month to recover.

The wealthy want the Government to cut back, not because there is a real, immediate debt crisis, but because continuing high unemployment serves them: it keeps wages low, workers compliant.

Unless there is some revolutionary upheaval, some Hugo Chavez, the takeover of the wealthy corporate class will continue, much like the monopolization of wealth and power in the hands of the Roman Senatorial class in the late 4th and early 5th century. It won't end well.

Wednesday, April 3, 2013

Who's More Corrupt?

Did you know that the "oil spill" in Arkansas over the weekend was actually tar sands (the stuff to be piped through the proposed Keystone XL pipeline)? Tar sands are probably exempt from the taxes that fund the clean up of such spills, yet this sludge is more toxic and more difficult to clean up than conventional crude.

Some interesting facts: the first, for me, was Oil Change's report, identifying the spill with Canadian tar sands. It wasn't reported that way in the New York Times, which used the euphemism "heavy crude from western Canada," nor on NPR, which simply reported it as a major oil spill until the following day.

Tar sands aren't oil. After much processing (requiring much heat, polluting more than coal), this "bitumen" sludge can be converted into an oil feedstock for further refining, but to call it "heavy crude" conceals what it really is and why a spill is much worse than conventional oil.

Toxicity is one of the reasons for blocking the XL Pipeline, which may be why even supposedly "objective" media outlets misled. Tar sands money has corrupted Canada's politics, and is adding to the endemic, legal corruption here. It may inspire right-wing billionaires, like the Kochs, to purchase media outlets like the LA Times.

Look at the contrast between India and the US: here the courts are influenced by major corporations, especially after Citizens United, and demand outrageous privileges, like patent monopolies indefinitely extended.

India is famous for its petty and not so petty corruption, personally observed when I lived there 33 years ago. Contemporary accounts imply it's as bad now. However, in some ways it might be less corrupt than the US, where corporations get anything they want, like Novartis' minor tweaking of an AIDS drug allowing indefinite monopoly protection. An Indian judge did something our Congress and courts have rarely managed: he stood up to Big Pharma, striking down Novartis' claim that its minor modification justified a new patent (monopoly protection) for the 20 years the Indian patent law permits.

In the US, regulators, courts and Congress bend over backwards to give corporations what they want--like the covert insertion of the "Monsanto protection act" into the Food bill.

The US may have fewer officials and politicians with their hands out, but the powerful use legal corruption. Their bribes are more lucrative: campaign funds, insider info, high paying jobs, and promotions when they recycle back from private to public sectors.

They are in service to our ultimate Roman Senators--the Koch brothers, Murdoch or Lockheed Martin--who know that control of the media is key.

Outside the US, people get freer news: in the US, Congress is writing a law to more strictly control the Internet, our best remaining source for a free flow of information.

Are we already a corporate state, a plutocracy like the later Roman Empire? Hard to tell with the managed information we're fed.