Reversing global warming will take far more than asking polluters to stop

Four hundred thousand took the streets of New York City on September 21, and, regardless of our critiques of the event and the groups organizing it, that is a memorable feat. But: What will it mean?

With no disrespect to the logistical work, the hardship of travel and all the rest of the organizing work carried on over several months, a demonstration is the easy part of a movement. The hard part is sustaining the many layers of strategic work necessary to prevail against vastly more powerful entities and having the courage to directly challenge the system.

A march of protestors literally miles long can’t help but earn attention, but without much follow-up work, it will mean little, exhilarating as it was to be among so many. The next day’s “Flood Wall Street” civil disobedience, in which hundreds of people blocked a major Financial District street for several hours, is a hopeful step. If the energy unleashed in Monday’s flood is replicated in all the places from which people traveled to the September 21 demonstrations that took place around the world, then perhaps that could be the day we some day look back to as the start of a successful struggle to save the planet.

People's Climate March, New York (photo by South Bend Voice)

People’s Climate March, New York (photo by South Bend Voice)

South Africans struggling to dismantle apartheid through long decades and the civil rights activists of the 1960s in the Southern U.S. literally put their bodies and lives on the line. And yet, as inhumane as the local elites were in protecting their privileges, the global order was not targeted. Tackling global warming seriously directly challenges business as usual around the world.

Reversing global warming and living in harmony with our environment and all the living beings who share the planet with us humans means nothing less than putting an end to capitalism. The industrialists and financiers who dominate the world, and the governments that serve them, show no indication they will do anything other than throw all the violence they can summon to keep their system in place and themselves at the top of the pyramid.

Demonstrations, in themselves, change nothing: They don’t touch the system and threaten no one in power. Demonstrations do signal popular anger, activate people by showing others that there are millions who think similarly (no, you are not crazy because you don’t believe the lies the corporate media feeds you), and serve as an invaluable organizing tool. An unused tool does nothing. A tool used properly multiplies force.

Will we use the tool — will we go back to our communities and construct the organizations that will find a path to a better world? That possibility is why we all had to march, despite the critiques put forth by thoughtful activists beforehand.

They say cringe, we say fight back

These critiques bring to mind the debates over the anti-war marches on the eve of the Bush II/Cheney administration’s invasion of Iraq, when activists in the U.S. were frustrated by United For Peace and Justice’s watered-down demands and transparent attempts to steer the anti-war movement into the Democratic Party and ultimately into the presidential campaign of pro-war candidate John Kerry. The counter-argument then was for Left activists to show up anyway and raise more radical demands and bring forth more fundamental analyses.

Similar critiques were heard about September 21’s People’s Climate March, which was so watered down that it had no demands. For example, a detailed critique by Global Justice for Animals and the Environment reported that grassroots organizers were “shot down” in planning meetings when they tried to link global warming with economic issues:

“The point of the meeting, they were told, was to focus on how to bring people to the march, not to set an agenda for it. Grassroots organizers were thus being called upon to do work for an event controlled by others. This raised alarm bells for me from the outset. It’s an all too common problem for NGO staff to treat grassroots organizers as their unpaid employees. Coming in and telling us ‘we set the [nonexistent] agenda; you should do the legwork’ is insulting and disrespectful of our time, priorities, and insights.”

At some point, an undifferentiated “big tent” devolves into a marketing opportunity for those most responsible for global warming. The Global Justice critique concludes:

“Another world IS possible, but we will not find it on a literal and metaphorical march to nowhere with fossil fuel burning energy companies, cynical greenwash fronts for big food multinationals, and green Apartheid apologists.”

I had no reason to disagree with that assessment. Nonetheless, why stay home? Better to show up, ignore the organizers and make far more serious critiques and raise far more serious demands at the march. (Which the authors of that critique indeed did do.) It’s not every day that one can see hundreds, perhaps thousands, of signs denouncing capitalism. And although even the route of the march came under criticism, it snaked through heavily trafficked areas of Midtown Manhattan. Going past Times Square alone, untold thousands of tourists — including people from across the United States, who most need that message put in front of them — saw it.

The corporate media won’t do our work for us

A sign that the march was too big for the corporate media to ignore was that the local newspapers actually ran articles about it. But New York City’s tabloids in particular were true to form, with the Daily News headlining its story “Thousands of protesters, including Leonardo DiCaprio, Mark Ruffalo, join People’s Climate March.” Alas, the article mostly consisted of breathless celebrity sitings, with only one actual activist quoted.

That was one more activist than could be found in The New York Post’s content-free article. The Post’s headline also referred to “thousands” and its article consisted entirely of celebrity mentions. But lest we think Rupert Murdoch’s minions are losing their extremist edge by uncharacteristically deigning to cover (however superficially) a demonstration not organized by the tea party, it ran an accompanying story headlined “Climate change skeptics call out marchers’ ‘hypocrisies.’ ” We’ll pause here while you enjoy a laugh.

Given the dearth of television coverage, the organizers’ goal of attracting media attention didn’t materialize in any meaningful way. And if there had been a flurry of television coverage, the corporate media would have moved on after one day with no follow-up. Organizing a march simply to generate media attention is a dead end strategy.

So despite the march-organizing NGOs’ faith in the Democratic Party and wish to avoid offending their corporate donors, there is not going to be a faction of the establishment suddenly open to confronting the issue of global warming. “Green capitalism” is an illusion — a system based on infinite growth on a finite planet, that grants a few vast rewards while shifting the costs to everyone else, is the problem and not the solution.

Organizing and struggle is the route to reversing global warming, not asking those who profit from destruction to please stop doing so.

The concrete roots of capitalism’s magical thinking

Most people don’t actually like capitalism. Dislike of the jobs we head to each day is quite the norm. Resentment of the power of the corporations we deal with in our daily lives crosses all social lines. Loathing of banks is nearly universal, across the political spectrum.

A sullen resignation to the continual unfairness of the world is pervasive. And yet, “there is no alternative.” Mercenary scribblers furiously tell us so. That this barrage of propaganda ceaselessly flows from the corporate media and other institutions speaks for itself as to the necessity of reinforcing this message; but it doesn’t in itself account for the widespread acceptance of “there is no alternative.”

There is the argument that if we simply ceased to cooperate, it would grind to a halt. Tempting though that argument is — and, in theory, it holds much truth — the puzzle of capitalism’s continued acceptance is a good deal more complicated.

"Nothing is nothing" photo by Darwin Bell

“Nothing is nothing” photo by Darwin Bell, San Francisco

Advanced capitalism is intertwined with so many aspects of our lives, and the capitalists who effectively rule the world possess multiple levers of power and influence to keep themselves in the saddle. There is also the not inconsiderable problem of the livelihoods of millions being entangled in destructive production and exploitation. Nor should the power of modern ideologies, such as nationalism, to provide emotional underpinning be ignored.

Except for the hopelessly cynical, humans need something to believe in, something bigger than themselves of which to be a part. The nation is the object par excellence for this; nationalism to this point in human history has proven stronger than class solidarity or any other more general identification in a common humanity. It has also superseded tribal or other local-community loyalties. Nationalism is a unifying glue holding together what Benedict Anderson calls “imagined communities” — human constructs that are mostly recent in origin.

Professor Anderson, in his classic book with that very name, Imagined Communities, offers this definition of a nation:

“It is an imagined political community — and imagined as both inherently limited and sovereign. It is imagined because the members of even the smallest nation will never know most of their fellow-members, meet them, or even hear of them, yet in the minds of each lives the image of their communion.” [page 6]

Approaching the question from a different angle, a nation might be thought of as a group with a common ethnicity, cohesive culture and shared language occupying a particular area (diasporas excepted). Most commonly, nations are organized as countries, although some countries (such as the United Kingdom) can contain multiple nations and settler countries (such as the United States) can be organized on an idea rather than an ethnicity, although culture and language are unifying factors. Some nations are colonies of or minorities within a larger nation and some nations are split among adjoining countries.

Nationalism versus solidarity

Religious belief has obviously been, and remains, a powerful force — as Christian fundamentalism in the U.S., political Islam in the Middle East and Hindu chauvinism in India attest, to cite merely three examples. Religions offer answers to life-and-death questions that other systems of thought don’t, not to mention promises of eternal life. It’s hard to top that. But religious belief has declined in most of the advanced capitalist world as science has taken hold since the Enlightenment.

To return to Imagined Communities, Professor Anderson argues that something was necessary to fill the void left by the withering of religious belief, and nationalism became the substitute as it came into being out of preceding cultural systems. He writes:

“What then was required was a secular transformation of fatality into continuity, contingency into meaning. … [F]ew things were (are) better suited to this end than an idea of nation. If nation-states are widely conceded to be ‘new’ and ‘historical,’ the nations to which they give political expression always loom out of an immemorial past, and, still more important, glide into a limitless future. It is the magic of nationalism to turn chance into destiny.” [pages 11-12]

The erasure of boundaries (for capital) through “free trade” agreements or entities like the World Trade Organization is a function of capitalist expansion. Globalization advances as competition within a given industrial sector narrows from separate sets of local corporations dominating particular countries or regions to a handful of corporations operating around the world. Yet although the largest capitalists are today transcending national borders, the largest capitalists of the 19th century were an important force in creating unified nations. What is today Germany and Italy were once a myriad of small principalities; capitalist trade required the barriers that frequent borders represent be dismantled.

The rise of books and other printed materials, and the accompanying rise of literacy along with the construction of centralized states, bureaucracies and school systems, brought about standardized languages. Often the dialect in the capital became the standard language, and a common language became a crucial building block for national consciousness. Nationalism became a necessary prop to wage modern war with the need for mass conscription, without which imperialism and colonization are impossible. Few soldiers would fight for corporate profits, but will for “national honor.”

The abject failure of the Socialist International to have any effect on the outbreak and initial enthusiasm for World War I was due not only to nationalism being more powerful than international or class solidarity among social democracy’s constituents but that social democrat leaders themselves were nationalists.

In no sense can nationalism be said to have lost its potency. It remains a durable force to divide the world’s people and block international solidarity — a devastating development when the world’s biggest capitalists are trans-national, conscious of their common interests beyond borders and relentlessly organizing chains of production that span the globe.

Democracy as consumerism rather then participation

We can freely buy whatever we like from whatever corporate behemoth we wish (assuming we are fortunate enough to have a job that provides a living wage). Untold billions of dollars are pumped into advertising campaigns designed to induce us to buy particular products and, crucially, to define this choice as “freedom.” Democracy is reduced to the ability to buy a corporate product as opposed to being defined as the ability to meaningfully participate in the decision-making processes of your society.

That crabbed definition of democracy and the ability to freely vote in elections with little meaning or choice (although the ability to vote is being eroded in the U.S., particularly for People of Color) are promoted as the epitome of political development. But how much freedom do working people in capitalist countries actually have? We have no control over our lives when on the job, which consumes most of our waking hours, nor any control over the corporate behemoths that routinely run roughshod over communities, nor legal recourse against “market forces” that enable the relentless privatization of previously public spaces and services.

I can think of my experience at Occupy Wall Street, the encampment of which was close to my place of employment. Invariably, anytime I happened to mention that I was handing out fliers or engaging others near to where I was employed while on lunch hour or after the end of my workday, the response was always concern that I would lose my job or get in trouble should my employer discover my participation. I wasn’t discovered, but the commonality of such reactions speaks for itself on the topic of democracy.

Political control in a capitalist society is hidden in a way that it was not in a country like the former Soviet Union, and the contrast in the manner of social control in capitalist versus Soviet-style societies became an invaluable tool undergirding capitalist triumphalism. Because the power held by capitalists in a capitalist society is secure through a myriad of institutions upholding their ideologies and deferring to them, bolstered by the appearance of democratic assent provided by elections, there is far more elasticity to capitalist régimes than Soviet-style régimes (which should more properly be called “post-capitalist” than “socialist” as their form congealed far short of any socialist ideal.)

The illusion of democracy

The historian Isaac Deutscher, in a series of lectures collected in his book The Unfinished Revolution: Russia 1917-1967, outlined this difference. He said of freedom in a capitalist country:

“[I]n bourgeois society it can be a formal freedom only. Prevailing property relations render it so, for the possessing classes exercise an almost monopolistic control over nearly all the means of opinion formation. … Society, being itself controlled by property, cannot effectively control the State. All the more generously is it allowed to indulge in the illusion that it does so. … In a society like the Soviet, freedom of association and character cannot have so formal and illusory a character: either it is real, or it does not exist at all. The power of property having been destroyed, only the State, that is, the bureaucracy, dominates society; and its domination is based solely on the suppression of the people’s liberty to criticize and oppose.

Capitalism could afford to enfranchise the working classes, for it could rely on its economic mechanism to keep them in subjection; the bourgeoisie maintains its social preponderance even when it exercises no [direct] political power. In post-capitalist society no automatic economic mechanism keeps the masses in subjection; it is sheer political force that does it. … Capitalism has been able to battle against its class enemies from many economic, political and cultural lines of defence, with much scope for retreat and maneouvre. A post-capitalist bureaucratic dictatorship has far less scope: its first, its political line of defence, is its last. No wonder that it holds that line with all the tenacity it can muster.” [pages 106-7]

(“Property” in the above quote refers to large enterprises and other economic entities in private hands.) The Soviet bureaucracy could maintain its privileges only through undisguised direct political force. Capitalists, in contrast, maintain their rule by virtue of owning the means of production, able to maintain power through decisive influence over a range of social institutions and thus diffusing and mystifying the roots of power.

There is no dictator, no party in permanent power, and the ruling capitalists and their political servants have conflicting interests that are debated in public. Thus the illusion of democratic accountability can be maintained, on a separate track from the pervasive advertising that reduces democratic choice to consumer selection of corporate products.

There are more flavors of cola to choose from than ever before. What more could you want?

Show your individuality by buying the same product

Marketing has become so sophisticated that consumption of corporate products is equated with individual expression. Individualism must be continually stimulated to counter the development of social solidarity, without which change in the structure of any society is impossible, yet consumerism-dependent production requires the fostering of mass taste to facilitate mass production.

Consumers are encouraged to “rebel” by decorating their smartphone or buying a copy of the latest recording by a “transgressive” musical act, a work of intellectual property owned by a corporate behemoth and carefully calculated to appeal to the widest possible demographic. Today’s cultural rebellion is tomorrow’s marketing campaign. The use of the Stooges’ “Search and Destroy” in a Nike commercial is but one example; more recently, 1960s icon Bob Dylan starred in a Super Bowl commercial for Chrysler extolling U.S. patriotism.

Photo by Istvan Takacs, Budapest.

Photo by Istvan Takacs, Budapest.

The word “revolution” has been reduced to a corporate slogan; the selling back to us of rebellion has attempted to shrivel the popular imagination to the point that the only change that can be imagined is an upgrade to a consumer product. This is no less true of the food we eat — as eating organic becomes more popular, large food corporations that have foisted on us unhealthy, over-processed foods are increasingly entering the organic field, both by creating new brands and taking over existing ones while being careful to not signal those corporate ownerships on the label.

Some of the largest multi-national corporations that spend millions of dollars to defeat genetically modified organisms (GMO) labeling initiatives own some of the best-known organic brands. Ben & Jerry’s Ice Cream may claim it is an “autonomous subsidiary” of its owner, multi-national conglomerate Unilever, but the profits it earns go to Unilever headquarters. Those profits fund a corporate parent that opposes GMO labeling, has been cited for making false health claims, has used its market power in tea to bully tea farmers in India, and promotes the World Trade Organization. Slick marketing keeps people buying the ice cream and obfuscating where the profits are going.

Yet even if a particular company stays true to a particular value, consumerism is an individualist gesture incapable of effecting change. All the more reason for it to be equated with “democracy.” In the 1970s, a frequently run public service announcement (PSA) featured a Native American man shedding a tear when a bag of garbage is thrown out of a car and lands at his feet, ending with the tag line that “People start pollution. People can stop it.” In a discussion of this PSA in his article “On the emotional terrain of neoliberalism,” Tim Jensen writes:

“Funded by beverage bottling corporations, the campaign was intended to lessen political pressure on manufacturers to stop producing non-refillable bottles and more generally be held accountable for creating the products that create litter. By placing the onus on the individual consumer, who is positioned as the cause of the problem and thus the solution’s origin, too, these corporate interests successfully deflected growing concern about pollution away from themselves. …

The PSA performs an emotional orientation focused on guilt, an emotion that is critical to our current landscape. What makes its rhetorical strategy effective is not simply the evocation of guilt in the consumer, but a specific form of guilt that is coupled with a pathway that channels the desire for atonement—one that does not put profit at risk. Asking why harmful bottles are being made in the first place and to what degree their manufacturer should be held accountable is trumped by a framework of consumer culpability, individualized responsibility, and ineffectual chores. It marshals the potential forces of transformative collective action and individuates them in an atonement strategy.”

If it is our own fault, then the system that actually compels such waste is blameless, beyond questioning.

Blow up that mountain or be out of work

Even when we are cognizant of the waste and destructiveness of capitalist production, it is not a simple matter to de-couple. Millions of jobs, and the communities where those jobs are located, are dependent on environmental destruction and unsustainable resource extraction. Faced with dismal, or no, prospects for alternative employment, the workers in such industries naturally oppose efforts to reduce the damage done — a market economy doesn’t offer new jobs for those put out of work.

The relentless competition of capitalism mandates that costs be steadily cut, so jobs are steadily lost anyway. Individualist ideology comes into play here as well: Something must be wrong with you for losing your job. And when that fails, there is always the strategy of finding scapegoats.

Scapegoating is not unique to any system, locale or time. But when a small elite commands the mass media and possesses decisive influence over educational, military, religious and other institutions, it possesses the means of shaping public opinion. The very fact of private ownership of the mass media contributes significantly to the effectiveness of the media in shaping public opinion. If several different media outlets report more or less the same thing, then those reports tend to be widely accepted.

It is surely true that the corporate owners of various publications and electronic news sources did not consult with one another, and in a capitalist formal democracy no government official tells you what to report. But the corporate plutocrats who own the mass media have a common interest in promoting a system that benefits them and thus narratives that reinforce those interests.

Most large, influential broadcast stations and print publications are owned by large corporations, and a typical small-city newspaper is owned by a prominent local businessperson if it is not owned by a large corporation. Powerful corporate interests appoint the top editors and managers of their media properties — these mass-media decision-makers are quite likely to be men and women who already see the world through the prism of dominant ideologies, and those ideologies will be reflected in the way that news stories are covered.

Battle in Seattle photo by Steve Kaiser, Seattle

Battle in Seattle photo by Steve Kaiser, Seattle

Those ideologies are also reflected in indirect ways — pressure to increase readership or viewership easily leads to pandering to perceived (and sometimes manufactured) consumer interests such as wall-to-wall coverage of celebrity gossip and exhaustive coverage of sports teams simultaneous with the shrinking of news sections.

No collusion is needed. It is enough that corporate-inspired ideologies pervade a society and that corporate ownership ensures that decision-making positions are filled with those who hold to some variant of prevailing ideologies or are inclined to “play it safe” by cautiously remaining within “acceptable” boundaries. The mass media will then simply reflect these dominant ideologies, and continual repetition through multiple mass media outlets reinforces the ideologies, making them more pervasive until the emergence of a significant countervailing pressure.

The persistence with which stories are reported is another reinforcement — stories that serve, or can be manipulated, to uphold dominant ideologies can be covered for long periods of time with small developments creating opportunities to create fresh reports at the same time that stories that are ideologically inconvenient are reported briefly, often without context, then quickly dropped.

Nor does the structure of corporate-dominated mass media exclude sometimes vigorous debate — as long as the positions being debated fall within the range of “acceptable” ideas that don’t challenge corporate orthodoxy. A system in which the mass media is believed to be independent is far more effective at suffusing a society with an ideology than the media of a closed society. Such a system is not the result of some sort of conspiracy or a conscious plan, it is simply a natural outgrowth of corporate institutions growing so powerful at the expense of all other institutions.

A network of institutional reinforcement

A web of institutions are necessary to maintain belief in a system, or to block to the extent possible, opposing narratives to the dominant belief system.

Educational institutions have been reduced to job-training facilities. University presidents and board members are increasingly prominent business leaders who seek to make educational institutions more “business-like” — pursuit of knowledge for personal intellectual enrichment is almost an after-thought. Educational initiatives at all levels are increasingly funded directly by corporate elites — instead of education being funded by the public through accountable institutions managed by education professionals, it is instead adapted to the needs of corporate-elite donors who seek to produce students grounded in technical skills without exposure to the types of courses that encourage creative or independent thinking.

Militaries in capitalist countries frequently function as enforcers of corporate prerogatives in weaker countries; militaries also underwrite corporate and university research and development, and are heavy buyers of corporate products. Politics cannot be anything but a significant corporate transmission belt because corporations provide campaign donations and give jobs to office holders when they leave office — those with money are those who get access, and thus provide the perspectives that will be heard.

The modern corporation also employs an army of lobbyists to influence politicians’ thinking. Corporate executives additionally create a network of auxiliary institutions — research centers and “think tanks” that can leverage lavish funding to disseminate class ideology through various channels. Bankrolling right-wing street movements, such as the Tea Party in the U.S. or outright fascist fronts in Europe, is another methodology for creating the appearance of popular support for anti-social tendencies.

Corporate institutions are competitors with sometimes sharply different interests — in terms of antagonisms between suppliers and buyers of raw materials and component parts; in divergence of the optimum conditions sought by different industries; and the ever present fierce fight over the sharing of profits between industrialists and financiers — yet these conflicts and antagonisms are contained within the perpetuation of the system within which they operate. As this collective power grows, it will steadily be wielded in harder forms in the absence of serious countervailing pressures in the form of mass movements.

Ideologies of individualism are not simply mechanisms to atomize society through breaking down bonds of solidarity — although that is an important reason for their propagation — they grant a license for those who have more but never enough. The cult of individuality, by reducing all social outcomes to personal behaviors independent of any social structure, provides the basis for the celebration of greed while simultaneously inculcating those who have been run over with the self-defeating idea that their individual failures account for their fate.

“Freedom” is equated with individualism — but as a specific form of individualism that is shorn of responsibility. More wealth for those at the top (regardless of the specific ideologies used to promote that goal, including demands for ever lower taxes) is advertised as good for everybody despite the shredding of social safety nets that accompanies the concentration of wealth. Those who have the most — obtained at the expense of those with far less — have no responsibility to the society that enabled them to amass such wealth.

Ongoing belief in capitalism, despite the widespread disapproval of its concrete results, rests on multiple pillars, none on their own decisive. The perceived lack of an alternative, however, is a linchpin. Cooperatives and other social forms of enterprise management, successful in significant numbers, would provide such an alternative — if people see examples of something better, “there is no alternative” would lose its force. But much organizing will be necessary to bring forward that day, for the massive force that capitalist society can bring down on alternatives hasn’t been, and won’t, be held back.

Please make your comment after we make our decision

Taking a page from their United States counterparts, European Union trade negotiators apparently interpret the word “consultation” as a synonym for “ignore.” Fresh evidence for this attitude toward the public was provided thanks to a leak of the final text of the proposed “free trade” agreement between Canada and the EU.

Although the E.U. trade office, the European Commission Directorate General for Trade, promotes a process of public consultation on its web site, it isn’t the public who gets listened to. The final text of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) includes language mirroring corporate wish lists unchanged from previous drafts despite the fact that the E.U. trade office has not had time to analyze comments submitted by the public.

This farce of a “consultation” process mirrors the secretive negotiations in the better known Trans-Pacific and Transatlantic trade agreements. Corporate lobbyists are well represented in these talks, but the public, watchdog groups and even parliamentarians and legislators are barred from seeing the text. The CETA text is also secret, but was leaked by the German television news program Tagesschau, which published the entire 521-page document on its web site. Yep, 521 pages.

The Rideau Canal in Ottawa (photo by John Talbot)

The Rideau Canal in Ottawa (photo by John Talbot)

Critical to understanding the CETA text is Section 33, the portion simply labeled “dispute settlement.” Under that bland heading a reader finds the muscle — what is known as an “investor-state dispute mechanism.” These “mechanisms,” found in many bilateral and multilateral trade deals, are corporate-dominated secret tribunals that hand down one-sided decisions with no oversight, no public notice and no appeals. Governments that agree to these mechanisms legally bind themselves to mandatory arbitration with “investors” in these secret tribunals on which most of the judges are corporate lawyers who represent the “investors” in other legal proceedings.

Kenneth Haar, a spokesman for the watchdog group Corporate Europe Observatory, in an interview with the EurActiv news site, called the dispute mechanism “an outright danger to democracy,” and said:

“The Commission is not really serious about its own consultation. It’s more about image than substance. … I think those who chose to respond to the Commission’s consultation are being ridiculed.”

Decisions will be final and unaccountable

Employing the standard sweeping language, CETA’s Article 14.2 (the articles here are numbered “14” even though they are found in Section 33) states: “[T]his Chapter applies to any dispute concerning the interpretation or application of the provisions of this Agreement” [page 472]. Article 14.10 goes on to declare, “The ruling of the arbitration panel shall be binding on the Parties. … The panel shall interpret the provisions referred to in Article 14.2 in accordance with customary rules of interpretation of public international law” [page 476].

“Customary” international law is whatever one of these secret tribunals says it is. Environmental regulations, “buy local” laws or any other government action that a corporation claims will hurt its profits can be, and frequently are, ruled illegal by these tribunals when adjudicating disputes under existing trade agreements. Such rulings set precedents that become “customary” international law.

In case these “customary” laws are not clear, on page 480 of the CETA text is Article 14.16, which would supersede national law:

“No Party may provide for a right of action under its domestic law against the other Party on the ground that a measure of the other Party is inconsistent with this Agreement.”

Your law was passed in a democratic process? Too bad — it will be overruled if an “investor” doesn’t like it.

CETA’s proposed rules are consistent with what is being secretly negotiated in the Transatlantic Trade and Investment Partnership between the U.S. and E.U., and in the Trans-Pacific Partnership being negotiated among 12 Pacific Rim countries. A majority of the world’s economy would be removed from any possibility of democratic control should these three trade deals come into effect.

The watchdog group Council of Canadians warns:

“The Harper government has thrown Canadian municipalities under the bus, forever banning ‘buy local’ and other sustainable purchasing policies that help create jobs, protect the environment and support local farmers and businesses. The Harper government has also agreed to lengthen patents and give new monopoly protections to already profitable brand name drug companies, which will needlessly add hundreds of millions to the cost of prescription drugs in Canada.”

Not even water would be exempt. If a water system is privatized and a local government chooses to re-municipalize it because rates have risen while service declines (as has routinely occurred on both sides of the Atlantic), the investor would be able to hold out for an extra windfall under the terms of the trade deal.

Only corporate lobbyists need apply

Although the public, and public-interest groups, are not heard, corporate lobbyists are. For example, there are 605 “advisers” with access to the text of the Trans-Pacific Partnership and who shape U.S. negotiating positions. Virtually every one is an executive of a multi-national corporation or a corporate lobbyist working for an industry association.

It is little different in Europe. Corporate Europe Observatory reports that 92 percent of the closed-doors meetings of the E.U. trade office have been with corporate lobbyists, while only four percent have been with public-interest groups. The trade office has gone so far as to actively solicit the involvement of corporate lobbyists. That perspectives other than those of multi-national capital are not considered can be inferred from the very way public input is solicited, the Observatory said:

“How would the average citizen respond to questions such as: ‘If you are concerned by barriers to investment, what are the estimated additional costs for your business (in percentage of the investment) resulting from the barriers?’ So, clearly, the close involvement of business lobbyists in drawing up the EU’s position for the [Transatlantic Trade and Investment Partnership] talks is a result of the privileged access granted to them.”

It’s no different for CETA, and the same dynamic exists across the Atlantic. Former U.S. Trade Representative Ron Kirk once admitted that if people knew what was in the Trans-Pacific Partnership, it would never pass. It is important to remember that these massive “free trade” deals are not simply business as usual — they go well beyond even the draconian rules of the North American Free Trade Agreement.

So although the competitive pressures of each country attempting to give an advantage to its multi-national corporations does mean that maneuvering through differing interests requires lengthy negotiations — not to mention the sometimes conflicting interests of various industries — at bottom there is a unifying class interest in the overall project. It is true that the U.S. adopts the hardest line in the trade negotiations it participates in (before we even get to the military muscle it applies to force open Southern countries), yet the absence of the U.S. from a Canada-European Union trade deal has made no practical difference to its outcome.

That different countries, different administrations, reach similar one-sided “free trade” agreements in which “investors” are allowed to overrule national laws, and labor, safety and environmental regulations are “harmonized” at the lowest level, is a product of capitalist competition. The rigors of that structural competition mandate expansion and growth — as local markets mature, capital has no choice, if it is to survive relentless pressure from competitors, other than opening new markets and relentlessly cutting costs to maintain profit levels. “Free trade” agreements represent one of the most effective ways to accomplish that.

Popular revolts against these agreements must be continued, and strengthened, but there will be no end to them as long as economic and social decisions are allowed to be made by “markets,” which are not disembodied entities sitting dispassionately on an Olympian throne but rather are the aggregate interests of the most powerful industrialists and financiers.

Freedom for capital, not people

Libertarianism is a philosophy of might makes right. The natural philosophy for the age of neoliberalism, as well demonstrated by the Koch brothers, but also, it would appear, a justification for the ugliest elements of United States history.

Consider the following words of Ayn Rand:

“Now, I don’t care to discuss the alleged complaints American Indians have against this country. I believe, with good reason, the most unsympathetic Hollywood portrayal of Indians and what they did to the white man. They had no right to a country merely because they were born here and then acted like savages. The white man did not conquer this country. …

Since the Indians did not have the concept of property or property rights — they didn’t have a settled society, they had predominantly nomadic tribal ‘cultures’ — they didn’t have rights to the land, and there was no reason for anyone to grant them rights that they had not conceived of and were not using. …

What were they fighting for, in opposing the white man on this continent? For their wish to continue a primitive existence; for their ‘right’ to keep part of the earth untouched — to keep everybody out so they could live like animals or cavemen. Any European who brought with him an element of civilization had the right to take over this continent, and it’s great that some of them did. The racist Indians today — those who condemn America — do not respect individual rights.”

A U.S. Air Force plane drops a white phosphorus bomb on Vietnam in 1966.

A U.S. Air Force plane drops a white phosphorus bomb on Vietnam in 1966.

The occasion for Ayn Rand’s cold-blooded, racist words was her speech to the graduating class of the U.S. Military Academy at West Point on March 6, 1974. She said the above during the question-and-answer session, but the text of the actual talk wasn’t much more humane. During her talk, among many head-slappers, the infamous philosopher of greed said:

“Something called ‘the military-industrial complex’ — which is a myth or worse — is being blamed for all of this country’s troubles. Bloody college hoodlums scream demands that R.O.T.C. units be banned from college campuses. Our defense budget is being attacked, denounced and undercut by people who claim that financial priority should be given to ecological rose gardens and to classes in esthetic self-expression for the residents of the slums.”

Civilizing them with a gun

I recall someone named Dwight Eisenhower raising concerns about a “military-industrial complex.” It seems to me he was in a position to know what he was talking about, even if he waited until the end of his career to provide a warning after devoting so much of it building up said complex.

At the time of the West Point talk, three million Vietnamese were dead due to a war nearing its conclusion. Was it valid to protest? Among other feats, the U.S. leveled major cities — 77% of the buildings in Hue, one of Vietnam’s biggest cities, were completely destroyed. Dams were blasted away, allowing salt water from the South China Sea to flood farmland, making the growing of food impossible.

In South Vietnam, 9,000 of 15,000 hamlets were damaged or destroyed, as were 25 million acres of farmland and 12 million acres of forest. Killed were 1.5 million cattle. In North Vietnam, 34 of the largest 36 cities suffered significant damage, with 15 completely razed, while 4,000 of about 5,800 communes were damaged. More than 1 million acres of farmland and 400,000 cattle were destroyed in the North. (These statistics are from Manufacturing Consent by Noam Chomsky and Edward S. Herman.)

The Vietnamese were ungrateful for this exemplary treatment, in the imperialist mind, similar to the ungrateful Native Americans who are “racist” because they have failed to appreciate the lessons in civilization they were being taught while the subjects of a genocide.

I don’t see why the above words of Ayn Rand should be considered any different than Nazi pronouncements on Jews.

Domination in the age of financialization

Although there is a temptation to think of libertarians as young conservatives who want to smoke marijuana — a picture sometimes true of libertarian followers — when libertarian leaders talk about “freedom,” what is really meant is freedom for the holders of capital to pursue profit maximization without limits. The cult of the market is a logical expression of the extreme individualism embodied in libertarianism.

One of the most influential articulators of that was Friedrich Hayek. The Austrian School economist asserted that solidarity, benevolence and a desire to work for the betterment of one’s community are “primitive instincts” and that human civilization consists of a long struggle against those ideals. “The discipline of the market” is the provider of civilization and progress, he wrote.

Thus, unregulated capitalism is “civilization” and anything else is a product of “primitive” group instincts that have survived from our prehistoric hunter/gatherer ancestors in the Hayekian worldview.

From these ideas, it is a small step to the concepts of “money equals speech” and “corporations are people” promulgated by the U.S. Supreme Court. This is an extension of “shareholder rights” to the political sphere — the more you own, the more say you have. A form of conquest and domination for the age of financialization.

If there is no community, no common interest, then why can’t someone, anyone, take whatever they want from the less strong? Give Ayn Rand credit for one thing: She stripped away all the accretions of individualist verbiage, all the rarefied theory of orthodox economics, and enunciated with unusual clarity what lies at the core of capitalist triumphalism. It hasn’t served the world very well.

When water is a commodity instead of a human right

The shutoff of water to thousands of Detroit residents, the proposed privatization of the water system and the diversion of the system’s revenue to banks are possible because the most basic human requirement, water, is becoming nothing more than a commodity.

The potential sale of the Detroit Water and Sewerage Department is one more development of the idea that water, as with any commodity, exists to produce private profit rather than to be a public necessity. And if corporate plunder is to be the guiding principal, then those seen as most easy to push around will be expected to shoulder the burden.

Thus, 17,000 Detroit residents have had their water shut off — regardless of ability to pay — while large corporate users have faced no such turnoff. The Detroit Water and Sewerage Department began its shutoff policy in March with a goal of shutting off the water to 3,000 accounts per week. Residents can be shut off for owing as little as $150. That is only two months of an average bill.

Water is a human right, the people of Detroit say. (Photo by Moratorium NOW! Coalition to Stop Foreclosures, Evictions, amd Utility Shutoffs)

Water is a human right, the people of Detroit say. (Photo by Moratorium NOW! Coalition to Stop Foreclosures, Evictions, and Utility Shutoffs)

Detroit water rates have more than doubled during the past decade, according to Left Labor Reporter, and in June another 8.7 percent raise was implemented. Yet only in July, months after residential water shutoffs began, did the water department announce it would send warning notices to delinquent businesses. There is no report, however, that any business has had its water turned off.

About half of the city’s overdue water payments are owed by commercial and industrial customers. Forty offenders, according to the department, have past-due accounts ranging from around $35,000 to more than $430,000. One golf course operator is said to owe hundreds of thousands of dollars.

The same week that the residential water shutoffs began, Detroit Emergency Manager Kevyn Orr put the water department up for sale. The department takes in about $1 billion in revenue per year, The Wall Street Journal reports, and collects more revenue than it spends. The system would potentially be a valuable asset for one of the multi-national corporations that have taken over privatized water systems around the world, mostly to the regret of the local governments and ratepayers.

Reversing the privatization of water

If Emergency Manager Orr succeeds in selling off Detroit’s water system, he will be bucking a trend. Dozens of cities in France and Germany have reversed earlier privatizations and are taking back their water systems after finding that higher prices and reduced services had been the norm post-privatization. French private water prices are on average 31 percent higher than in public water services. Five Pennsylvania towns that privatized their water saw their rates more than triple on average.

That rate differential shouldn’t come as a surprise — a government doesn’t need to generate a profit like a corporation. A water company, like any other capitalist enterprise, is expected to generate large profits for its investors and giant payouts to its executives, and thus must extract more money out of its property.

If the water system is privatized, Detroit’s city budget will receive a one-time boost, but forgo future revenues and lose control of a public good built with public money. Nor is there any guarantee that it would be sold at market value. A utility undervalued would produce quicker profits for any water company that got its hands on it, and every incentive is for it to be bought at as low a price as possible.

Banks, however, have already extracted huge profits from Detroit’s infrastructure. The water department is believed to have paid banks penalties of $537 million to escape its disastrous interest-rate default swaps. Instead of simply selling plain-vanilla bonds — paying bond holders a set amount on a set schedule — Detroit (like many municipal governments) became entangled in various complicated financial derivatives layered on top of its bonds.

Investment banks sold local governments interest-rate swaps as a form of insurance as a hedge against rising interest rates. But if interest rates went down — which they did — then the governments would be on the hook for large sums of money. (That rates would fall was predictable; central banks cut interest rates as a matter of routine during recessions.) Thanks to financial engineering falsely sold as “insurance,” the Financial Times reports it will cost Detroit $2.7 billion to pay back $1.4 billion in borrowing — this total includes $502 million in interest payments and $770 million as the cost of the derivatives.

The $537 million the Detroit water department handed to banks to escape continued extra payments to cover the swaps is more than four times the entire past-due water bill, residential and commercial, at the start of the water shutoffs in March.

Not so quick to challenge the banks

Yet there appears to be no effort to recoup any of that penalty money or to investigate if there was any illegality in the deals. Curt Guyette, writing for a Detroit alternative publication, Metro Times, said:

“Given the fact that former Mayor Kwame Kilpatrick, who is now is serving a decades-long sentence in federal prison for running the city as if it were a criminal enterprise when these deals went down, [was then in office] it doesn’t seem unreasonable to at least suspect that something shady might have been going on.

Nonetheless, Orr and the legal team from [corporate law firm] Jones Day — where Orr was a former partner, and which has as clients both Bank of America and a division of UBS — have, as the complaint [filed in federal court by community activists] points out, ‘failed to investigate the misconduct or take measures to recoup any portion of the $537 million in suspect termination fees paid to the banks.’ ”

Both Bank of America and UBS profited enormously from the interest-rate swaps. Emergency Manager Orr does not seem terribly bothered by democratic processes, however. He is going ahead with a separate plan to privatize Detroit’s parking department despite the fact that the City Council voted, 6-2, against it. The Detroit Free Press reports that the parking system generates $23 million in revenue with only $11 million in expenses. This would be another revenue stream leaving public hands, and the same needs of a private owner to generate profits would be expected to lead to the same results that privatizations of water systems and other public services have led.

The people of Detroit are fighting back, through demonstrations, lawsuits, appeals to the United Nations and in physically blocking crews assigned to turn off the water. Water is also being turned back on without asking for permission from authorities. Activists demand the immediate resumption of water service for everyone and to make water affordable. Detroit Debt Moratorium, for example, is calling for water bills to be capped at two percent of household income.

These efforts have borne some fruit as Emergency Manager Orr issued an order handing Mayor Mike Duggan managerial control over the water department in late July. The department subsequently declared a moratorium on water shutoffs until August 25.

A commodity is privately owned for the purpose of profit, regardless of human need; that the commodity is something as necessary as water does not alter that a commodity goes to those who can pay the most. The market determines who gets what, or if you get it at all — and the market is simply the aggregate interests of the most powerful industrialists and financiers. The agony of Detroit is the logical conclusion of reducing social and economic decisions to market forces. Detroit just happens to the be the locality that got there first.

“Justice” for a billionaire, none for the state he ripped off

There has been much cheering across the corporate media about the Permanent Court of Arbitration in The Hague ordering the Russian government to pay more than US$51 billion as compensation for confiscating the assets of Yukos, yet silence concerning the original theft of the company by Mikhail Khodorkovsky.

The basis of the decision by the arbitration court was that the assets of Yukos, seized for alleged non-payment of taxes, were sold for US$9 billion, well below the estimated value of the company. Conveniently left out of this picture is that Mr. Khodorkovsky purchased the assets for $159 million seven years earlier in a rigged process that he controlled. He did so as one of seven oligarchs who bought deeply unpopular former President Boris Yeltsin a second term and were handed control of the country’s vast natural resources as a reward.

This is a story that can not be separated from the fall of the Soviet Union and the looting of its assets, with a handful of newly minted oligarchs, mostly former black marketeers who became bankers, coming to control post-Soviet Russia’s economy. Estimates of the size of the assets that came to be owned by the seven biggest oligarchs (Mr. Khodorkovsky was one of them) in the late 1990s range up to one-half of the Russian economy. This at the same time that the Russian economy shrank by 45 percent and an estimated 74 million Russians lived in poverty according to the World Bank; two million had been in poverty in 1989.

Siberian mountain formation (photo by Irina Kazanskaya)

Siberian mountain formation (photo by Irina Kazanskaya)

An important factor in the failure of Mikhail Gorbachev’s perestroika was that working people saw the reforms as coming at their expense. A 1987 reform loosened job protections in exchange for enterprise councils that were to have given workers a voice in management, but the councils were largely ineffective or co-opted by managements. The law had also been intended to eliminate labor shortages. It didn’t, and a 1990 reform was stealthily passed to reduce employment and eliminate the ability of working people to defend themselves. Enterprises would now have private owners with the right to impose management and ownership shares could be sold.

Exhaustion from years of struggle also were a factor in the lack of organized resistance to the elements of capitalism that were introduced in the last years of perestroika and to the shock therapy that was imposed on Russia at the start of 1992, days after the formal dissolution of the Soviet Union and the assumption of uncontested power by President Yeltsin. Shock therapy wiped out Russians’ savings through hyperinflation and state enterprises were sold at fire-sale prices, or sometimes simply taken.

Connections allowed him to set up businesses

Mr. Khodorkovsky used his connections as an official within the Communist Youth League to found a company that imported and resold computers and other goods at huge profits and engaged in currency speculation. The proceeds were used to buy companies on the cheap and found a bank. His bank, Menatep, earned large fees by providing credit when it was in scarce supply during the post-Soviet collapse.

When President Yeltsin was up for re-election in 1996, he faced a daunting challenge as his popularity rating was well below 10 percent — tens of millions of Russians had been plunged into poverty and the economy had contracted for several years in succession. The president admitted in his memoirs that he was about to cancel the election. But he was presented with a plan by the seven oligarchs, the scheme that became known as “loans for shares.”

These seven oligarchs offered President Yeltsin a bargain: In lieu of paying taxes, they would make loans to the government so it could meet its expenses, such as actually paying its employees. In return, the government would give the oligarchs collateral in the form of shares of the big natural-resources enterprises that were soon to be privatized. (Other state enterprises had been quickly privatized upon the implementation of shock therapy.)

If the loans were repaid, the bankers would give the shares back. If not, the oligarchs would hold auctions to sell the collateral. The government had no ability to pay back these loans, but President Yeltsin issued a decree sealing the deal in August 1995.

The oligarchs used their own banks to conduct the subsequent auctions, and, through a mix of rigged terms and conveniently closed airports, won them all at prices that were small fractions of the enterprises’ reasonable market value. These enterprises represented Russia’s enormous reserves of oil, nickel, aluminum and gold, and a minority share in the dominant gas company, Gazprom.

These seven oligarchs all became billionaires through the “loans for shares” scam. The oligarchs, who owned almost the entire Russia mass media, spent 33 times the legal limit on the election and provided 800 times more television coverage of President Yeltsin than was provided to his opponents.

Mr. Khodorkovsky’s bank, Menatep, was put in charge of the auction of Yukos. It avoided competitive bidding, enabling his holding company to buy it for $159 million, only $9 million above the starting price. As long as Boris Yeltsin was president, the oligarchs could steal all they wanted. Nor did Western authorities complain about this; President Yeltsin’s bombardment and illegal disbanding of the Russian Parliament in 1993, resulting in more than 500 deaths, was celebrated as a democratic triumph. Indeed, the World Bank’s chief economist for Russia declared, “I’ve never had so much fun in my life.”

Corporate lawyers as arbitrators

The Permanent Court of Arbitration that handed down the $51 billion judgment is one of the international tribunals that hear investor-state disputes behind closed doors. As is customary with these bodies, the arbitrators are corporate lawyers appointed by governments.

In the Yukos case, each side could choose one of the three panelists who hear the case. The deciding panelist was Yves Fortier, a former chair of one of Canada’s biggest corporate law firms and of Alcan Inc., a mining company since bought by Rio Tinto, and a director of several other companies.

I see no sense in denying that politics were behind Mr. Khodorkovsky’s prison sentence and his loss of Yukos. But there can be no dispute that politics and shady dealing earned him his fortune in the first place. The gangster capitalism in which he excelled in the 1990s, cheered on by the West, was without mercy. Are there going to be outpourings of sympathy for the tens of millions of Russians immiserated so that the country’s Khodorkovskys could become billionaires? I think we already know the answer.

We cannot shop our way out of environmental crisis, ‘green’ or not

Eight weeks ago, I wrote about the delusions of “green capitalism,” that there is no alternative to a dramatic change in the organization of the global economy. That led to a vigorous discussion, and I thank all of you who contributed to it.

This week, I’d like to return to this theme, in the form of discussing an interesting paper that I could then only quote briefly. The paper, “Green capitalism: the god that failed,” by Richard Smith of the Institute for Policy Research & Development in London, packs a powerful argument into its 33 pages. The paper was published in issue No. 56 (March 2011) of Real-World Economics Review. (That a publication for non-orthodox practitioners needs to take such a name speaks volumes of the field as a whole.) The author’s basic theses are:

  • “Green capitalism” is “doomed from the start” because maximizing profit and environmentalism are broadly in conflict; the occasional time when they might be in harmony are rare exceptions and temporary. This is because the managers of corporations are answerable to private owners and shareholders, not to society. Profit maximization trumps all else under capitalism and thereby sets the limits to ecological reform.
  • No capitalist government can impose “green taxes” that would force out of business the coal industry or any other because the result would be recession and mass unemployment. Without carbon or other “green” taxes, the “entire green capitalist project collapses.”
  • Green-capitalism proponents vastly underestimate the speed with which environmental collapse is coming. No amount of tinkering can alter the course of environmental destruction under the present system. Humanity, therefore, must replace capitalism with a post-capitalist ecologically sustainable economy.
  • Resource extraction is inherently polluting but can’t be shut without chaos. It is not possible to “dematerialize” much of the economy as green-capitalism proponents believe possible. The only way to reduce greenhouse-gas emissions is to “enforce a drastic contraction of production in the industrialized countries.” Such a thing is not possible in capitalism because the affected industries would be committing suicide to agree to this and nobody would promise jobs to those displaced; this could only be carried out through a socialization of industry and a redeployment of labor to sectors that need to be developed for social good.
  • Consumerism and over-consumption are not “cultural” or the result of personal characteristics — they are a natural consequence of capitalism and built into the system. Problems like global warming and other aspects of the world environmental crisis can only be solved on a global level through democratic control of the economy, not by individual consumer choices or by national governments.

Cap-and-trade equals profits by polluting

European attempts to implement “cap and trade” schemes to limit greenhouse-gas emissions were countered from the start by industry lobbyists asking for exceptions because, they argued, they would lose competitiveness, and some threatened to move elsewhere, taking jobs with them. Governments gave in. Polluters and traders took in windfall profits, with no real effect on emissions. Dr. Smith wrote:

“German electricity companies were supposed to receive 3 percent fewer permits than they needed to cover their total emissions between 2005 and 2007, which would have obliged them to cut emissions by that amount, instead the companies got 3 percent more than they needed — a windfall worth about $374 billion at that time.” [page 119]

A proposal to directly tax carbon in France, proposed by the administration of Nicolas Sarkozy, was ruled unconstitutional because most of France’s major polluters would have been let off the hook entirely while households would have assumed the burden. Dr. Smith put the farce of this failed proposal in perspective:

“The court said that more than 1,000 of France’s biggest polluters could have been exempted from the charges, and that 93 percent of industrial emissions would not have been taxed at all. But even if Sarkozy had successfully imposed his carbon tax, this tax would have raised the price of gasoline by just 25 US cents per gallon. Given that the French already pay nearly $9 per gallon for gasoline, it’s hard to see how an additional 25 cents would seriously discourage consumption let alone ‘save the human race.’ ” [page 120]

A part of Moofushi's bleached coral reef (Alifu Dhaalu Atoll, Maldives), damaged by warming sea temperatures.  (Photo by Bruno de Giusti)

A part of Moofushi’s bleached coral reef (Alifu Dhaalu Atoll, Maldives), damaged by warming sea temperatures.
(Photo by Bruno de Giusti)

Some advocates of cap-and-trade or carbon taxes in the United States try to get around industry pushback by advocating they be made “revenue-neutral.” But if “carbon tax offsets are revenue neutral, then they are also ‘impact neutral,’ ” Dr. Smith writes. That brings us back to the reality that imposing drastic cuts would be the only way to effect the significant reductions in greenhouse-gas emissions necessary to prevent catastrophic global warming in coming decades. That, in turn, can’t be done without massive dislocation.

Yet reductions are not only necessary, but will be required by physical limits — the world’s population is using the resources at the rate of 1.5 Earths and the United Nations predicts we’ll be using two Earths by 2030. Moreover, if all the world’s peoples used resources at the rate that the United States does, “we would need 5.3 planets to support all this.” Needless to say, we have only one Earth available.

More efficiency leads to move consumption

One of the pillars on which green capitalists rest their advocacy is increased efficiency of energy usage, achieved through technological innovation. But energy usage has been increasing, not decreasing, despite greater efficiencies wrung out of a range of products. Gains in efficiency can, and frequently are, used to expand production; given that capitalist incentives reward expansion, that is what is done. Moreover, “green” industries are not necessarily green. The “god that failed” paper points out:

“Even when it’s theoretically possible to shift to greener production, given capitalism, as often as not, ‘green’ industries just replace old problems with new problems: So burning down tracts of the Amazon rainforest in order to plant sugarcane to produce organic sugar for Whole Foods or ethanol to feed cars instead of people, is not so green after all. Neither is burning down Indonesian and Malaysian rainforests to plant palm-oil plantations so Britons can tool around London in their obese Landrovers.” [page 128]

Making motor vehicles more fuel-efficient, although a goal that should be pursued, nonetheless falls far short of a solution. Fuel usage from the increasing number of vehicles and longer distances traveled are greater than all the savings from fuel efficiency. And focusing on only when the vehicle is being driven leaves untouched most of the pollution caused by them, Dr. Smith writes:

“Most of the pollution any car will ever cause is generated in the production process before the car even arrives at the showroom — in the production off all the steel, aluminum, copper and other metals, glass, rubber, plastic, paint and other raw materials and inputs that go into every automobile, and in the manufacturing process itself. Cars produce 56 percent of all the pollution they will ever produce before they ever hit the road. … [S]o long as [automakers] are free to produce automobiles without limit more cars will just mean more pollution, even if the cars are hybrids or plug-in electric cars.” [page 131]

Those electric vehicles are only as “clean” as the source of electricity used to power them. Many plug-in electric vehicles are coal-powered vehicles because coal is a common source of electricity. Looking at it holistically, such an electric vehicle would be more polluting than a gasoline-fueled vehicle; and the majority of the pollution from the manufacturing (for the vehicle itself) would be there just the same. Then there is the pollution and greenhouse-gas emissions of the electric-car battery. Nickel is a primary input; the Russian city that is the site of the world’s largest source of nickel, Norilsk, is one of the world’s most polluted places.

“I would not be surprised if the most ecological cars on the planet today are not those Toyota Priuses or even the Chevy Volts with their estimated [seven- to 10-year] lifespan, but those ancient Fords, Chevrolets, and Oldsmobiles cruising round the streets of Havana. For even if their gas mileage is lower than auto-producer fleet averages today, they were still produced only once, whereas American ‘consumers’ have gone through an average of seven generations of cars since 1960 (when the U.S. embargo ended car imports to Cuba), with all the manufacturing and disposal pollution that entailed.” [page 133]

Consumerism props up capitalist economies

Planned obsolescence is part of the problem, across the spectrum of manufactured products. Capitalist manufacturers don’t want products that last a long time; repeatedly selling new products is far more profitable. But it would be overly simplistic to lay full blame for this on greed, however much greed is rewarded by a capitalist economy. Household consumption — all the things that people buy for personal use from toothbrushes to automobiles — accounts for 60 to 70 percent of gross domestic product in almost all advanced capitalist countries. If people aren’t buying things, the economy struggles.

Proponents of green capitalism fail to grasp the structural causes of over-consumption. However much better for the environment, and the world’s future, drastic reductions in consumerism would be, moral exhortations can’t be effective. Trapped in an idealist mirage that capitalism can be “tamed” or “repurposed,” green capitalists, through seeking individual solutions to structural and systemic problems, not only miss the forest for the trees but leave the economic structure responsible untouched. People in the global North should consume less, but to place the blame on individual behavior lets the manufacturers of useless products off the hook and is blind to the economic realities should the system be left in place intact.

Once again, we can not shop our way out of economic and environmental problems. Even not shopping would bring its own set of problems, Dr. Smith writes:

“[H]ow can we ‘reject consumerism’ when we live in a capitalist economy where, in the case of the United States, more than two-thirds of market sales, and therefore most jobs, depend on direct sales to consumers while most of the rest of the economy, including the infrastructure and not least, the military, is dedicated to propping up this super consumerist ‘American way of life?’ Indeed, most jobs in industrialized countries critically depend not just on consumerism but on ever-increasing overconsumption. We ‘need’ this ever-increasing consumption and waste production because, without growth, capitalist economies collapse and unemployment soars. …

[I]t’s not the culture that drives the economy so much as, overwhelmingly, the economy that drives the culture: It’s the insatiable demands of shareholders that drive corporate producers to maximize sales, therefore to constantly seek out new sales and sources in every corner of the planet, to endlessly invent [new needs]. … ‘[C]onsumerism’ is not just a ‘cultural pattern,’ it’s not just ‘commercial brainwashing’ or an ‘infantile regression.’ … Insatiable consumerism is an everyday requirement of capitalist reproduction, and this drives capitalist invention and imperial expansion. No overconsumption, no growth, no jobs. And no voluntarist ‘cultural transformation’ is going to overcome this fundamental imperative so long as the economic system depends on overconsumption for its day-to-day survival.” [pages 141-142]

There is no way out other than replacing capitalism with a steady-state economy based on meeting human needs, and that could only be attained through bottom-up, democratic control. No one promises new jobs to those who would be displaced under capitalism; logically, then, those who jobs and ability to earn a living is dependent on polluting or wasteful industries resist environmental initiatives. The wholesale changes that are necessary to prevent a global environmental catastrophe can’t be accomplished under the present economic system; it would require a different system with the flexibility to re-deploy labor in large numbers when industries are reduced or eliminated, and one that would have no need to grow. Inequality would have to be eliminated for any kind of global democratic economy to be able to function.

Richard Smith pronounces this “a tall order to be sure.” That it is. But with many world cities, and entire countries, at risk of becoming inhabitable due to rising sea levels, more erratic weather and an accelerated timetable to deplete the world’s resources, what choice do we have? Green capitalism is not only not green, it is worse than illusion because of the false hope it dangles in front of our eyes.