Forward to the past: Next stop, the 19th century

If capitalism is taking us back to feudalism, we’ll have to pass through the 19th century on our way. In terms of wealth inequality, we’re on course to return to the century of robber barons. Back then, the public-relations industry hadn’t developed, so at least they were called by an honest name, instead of “captains of industry” or “entrepreneurs” as they are today. Although “heir” would frequently be far more accurate than “entrepreneur.”

We’re not at the 19th century yet, but we have arrived at the 1920s on our trip to the past. The level of inequality of wealth in the United States today has not been seen since the decade that led to the Great Depression.

The top 0.1 percent — that is, the uppermost tenth of the 1% — have about as much wealth as the bottom 90 percent of United Statesians. To put it another way, approximately 320,000 people possess as much as do more than 280 million. It takes at least $20 million in assets to be among the top 0.1 percent, a total that is steadily rising.

An altered version of a Depression-era image. (Image by Mike Licht, NotionsCapital.com)

An altered version of a Depression-era image. (Image by Mike Licht, NotionsCapital.com)

Emmanuel Saez, an economics professor at the University of California, and Gabriel Zucman, a professor at the London School of Economics, examined income-tax data to reveal these numbers. They write that they combined that data with other sources to reach what they believe is the most accurate accounting of wealth distribution yet, one that shows inequality to be wider than previously imagined. The authors define wealth as “the current market value of all the assets owned by households net of all their debts,” including the values of retirement plans with the exception of unfunded defined-benefit pensions and Social Security. (The reason for that exclusion is that those moneys do not yet exist but are promises to be kept sometime in the future.)

The authors’ paper, “Wealth Equality in the United States since 1913: Evidence from Capitalized Income Data,” reports that, for the bottom 90 percent, there was no change in wealth from 1986 to 2012, while the wealth of the top 0.1 percent increased by more than five percent annually — the latter reaped half of total wealth accumulation.

The 22 percent of total wealth owned by the top 0.1 percent is almost equal to what that cohort owned at the peak of inequality in 1916 and 1929. Afterward, their total fell to as low as seven percent in 1978 but has been rising ever since. At the same time, the combined wealth of the bottom 90 percent rose from about 20 percent in the 1920s to a peak of 35 percent in the mid-1980s, but has been declining ever since. Although pension wealth has increased since then, Professors Saez and Zucman report, the increase in mortgage, consumer-credit and student debt has been greater.

Nonetheless, this might still be an underestimation — the authors write that they “still face limitations when measuring wealth inequality” because of the ability of the wealthy to hide assets off shore or park them in trusts and foundations.

Inequality on the rise

Although rising throughout the developing world, inequality is particularly acute in the United States. Among the nearly three dozen countries that make up the Organisation for Economic Co-operation and Development, only three (Chile, Mexico and Turkey) have worse inequality than does the U.S., measured by the gini coefficient. The standard measure of inequality, the more unequal a country the closer it is to one on the gini scale of zero (everybody has the same) to one (one person has everything).

Of course, were we to measure inequality on a global scale, the results would be more revealing. Even the U.S. gini coefficient of 0.39 in 2012 pales in comparison to the global gini coefficient of 0.52 as calculated by the Conference Board of Canada. To put it another way, global inequality is comparable to the inequality within the world’s most unequal countries, such as South Africa or Uganda.

How to reverse this? Professors Saez and Zucman offer reforms that amount to a return to Keynesianism. They advocate “progressive wealth taxation,” [page 39] such as an estate tax; access to education; and “policies shifting bargaining power away from shareholders and management toward workers.” Such policies would surely be better than the austerity that has been on offer, but the authors’ wish that this can simply be willed into existence is quite divorced from capitalist reality.

Indeed, the authors go on to lament that one factor in stagnant incomes is that “many individuals … do not know how to invest optimally.” It is difficult to believe that these two learned economists are unaware of the relentless chicanery of the financial industry. How does one invest “optimally” in a rigged casino stacked against you?

The past is not the future

Fond wishes for the return of Keynesianism will not bring those days back. (And, of course, if you weren’t a white male those days weren’t necessarily golden anyway.) The Keynesian consensus of the mid-20th century was a product of a particular set of circumstances that no longer exist. Keynesianism then depended on an industrial base and market expansion. A repeat of history isn’t possible because the industrial base of the advanced capitalist countries has been hollowed out, transferred to low-wage developing countries, and there is almost no place remaining to which to expand. Moreover, capitalists who are saved by Keynesian spending programs amass enough power to later impose their preferred neoliberal policies.

Capitalists tolerated such policies because profits could be maintained through expansion of markets and social peace bought. This equilibrium, however, could only be temporary because the new financial center of capitalism, the U.S., possessed a towering economic dominance following World War II that could not last. When markets can’t be expanded at a rate sufficiently robust to maintain or increase profit margins, capitalists cease tolerating paying increased wages.

And, not least, the massive social movements of the 1930s, when communists, socialists and militant unions scared capitalists into granting concessions and prompted the Roosevelt administration to bring forth the New Deal, were a fresh memory. But the movements then settled for reforms, and once capitalists no longer felt pressure from social movements and their profit rates were increasingly squeezed, the turn to neoliberalism was the response.

Nobody decreed “We shall now have neoliberalism” and nobody can decree “We shall now have Keynesianism.” Capitalist market forces — once again, simply the aggregate interests of the most powerful industrialists and financiers — that are the product of relentless competitive pressures have led the world to its present state and the massive inequality that goes with it.

Even if mass social movements build to a point where they could force the imposition of Keynesian reforms, the reforms would eventually be taken back just as the reforms of the 20th century have been taken back. The massive effort to build and sustain movements capable of pushing back significantly against the tsunami of neoliberal austerity would be better mobilized toward a different economic system, one based on human need rather than private profit.

Reforming what is ultimately unreformable is Sisyphean. Going back to the mid-20th century Keynesian era, even were it possible, would be no more than a detour on the way to the 19th century. Building a better world beats nostalgia.

Taking back the imagination

Of the many myths propping up capitalism few are more essential than the carefully tended concept of “imagination.” Capitalism supposedly unleashes the human imagination, enabling individuals to fulfill their potential and continually “disrupting” older systems to bring forth the new and improved. Shattering this mythology is one of the tasks of movements.

The ever active engineers of capitalist ideology, to be sure, possess the ability to shape human consciousness through the ability to exert decisive influence over of myriad of institutions. But to what end? Is the massive failure to meaningfully grapple with the myriad of crises not a failure of imagination?

It is imagination that is stifled under capitalism, argues Max Haiven in his engaging book Crises of Imagination, Crises of Power: Capitalism, Creativity and the Commons.* The crisis is capitalism, Professor Haiven argues: The fundamental amorality of the capitalist system itself is the cause of the world’s difficulties, not a lack of regulation nor the greed of individuals.

That message is present throughout the book. In the opening pages, Professor Haiven writes:

“[C]apitalism relies not only on the brutal repression of workers in factories and fields; it also relies on conscripting our imaginations. On a basic level, it relies on each of us imagining ourselves as essentially isolated, lonely, competitive economic agents. It relies on us imagining that the system is the natural expression of human nature, or that it is too powerful to be changed, or that no other system could ever be desirable. … While the system is ultimately held in place by the threat and exercise of very real violence and the concentration of very material wealth and power in the hands of the ruling class, its imaginary and imaginative dimensions cannot be ignored.” [pages 7-8]

Crises of ImaginationThe book is mostly a series of essays written for various publications that have been revised; this format is both strength and weakness. It is a strength because the author is able to present arguments on aspects of capitalist domination that receive less attention that they should, such as the neoliberal assault on education and the enclosures of the commons, not as a historical crime of the past but as an ongoing process happening today. It is something of a weakness because the various pieces of a full picture are not necessarily welded together, however much the cumulative effect of the author’s strands of thought do add up to a powerful argument.

One of these strands is a needed discussion of narrative — that is, the Right’s success at manipulating emotion versus the Left’s difficulties in gaining footholds in the popular imagination. There is not a level playing field here, of course. It is the very lack of content to Right-wing “values” that makes its rhetoric effective, Professor Haiven argues, because terms without content stand in for emotions, phobias and feelings. The Right uses emotion to get people to hate, whereas the Left is more “abstract, general and preachy.” Facts and statistics are important but insufficient by themselves. What is necessary are common values as the “bedrock” of revolutionary change.

Imagination as building block of social movements

Values should be flexible and negotiable, rather than fixed or dictated. Movement work and the creation of values should be a mutually reinforcing process. A central task, the author writes:

“is to imagine and build social formations that make the constant renegotiation of values central and operative. This is, for instance, the value of horizontal organizing and diversity in social movements: they force a constant questioning and recalibration of values not as hard, fixed and eternal ideals but as working models for collaboration.” [page 55]

Within capitalist logic, we are worthless and replaceable cogs, set at one another’s throats.

“[T]he Chinese teenager becomes a threat to my job because she can work for less and her company can attract the corporation that used to employ somebody like me. Meanwhile, it is my anonymous consumer appetites, driven by my dislocation from community and my need to survive in an austere world, that demands the conditions of that Chinese worker’s exploitation. And the unfortunate fact is that I’m effectively worthless in this equation too: I could choose to not buy the iPod, but someone else will. Everyone is utterly replaceable in this system.” [page 55]

And on their own. Financialization shifts risks to the individual, his or her retirement dependent on the mercy of stock markets far beyond his or her control; universities are reduced to neoliberal showpieces that convert students into individualized debtors with no mission beyond issuing a ticket for a future job; language is debased to co-opt the meaning of “creativity” to twist it into underpaid labor in a neoliberal workforce that does nothing more than hype mindless consumerism; and mass culture is reduced to the buying of corporate products.

The author produces compelling arguments detailing these and other outcomes of modern capitalist society. But the underlying economic processes and structures underlying neoliberal assaults on ever more aspects of public life are largely missing from Crises of Imagination. This is perhaps not an entirely fair criticism because the book is a philosophical work, not an economic one. The author himself concludes his introduction by humbly writing that “I cannot claim to have done anything particularly innovative” nor, he says, is the book an attempt at a systemic theory. Fair enough.

Professor Haiven is correct when he writes that confronting capitalist power today requires far more than cutting down the size of banks, that it is too simple to believe that finance is merely a force imposed on society from above, and that financialization imposes shifts in corporate behavior that lead to faster recourse to layoffs and moving production to low-wage havens. But it is puzzling to read that “the new paradigm subordinates capitalism itself to the increasingly short-term, ruthless and pathological imagination of ‘the market.’ ” [page 108]

I have no argument with that description of “the market,” but it obscures that such markets are indistinguishable from capitalism. Capitalist markets are nothing more than the aggregate interests of the most powerful industrialists and financiers, and can not be anything else. The very process of financialization — whereby financiers, acting as both whip and parasite, impose discipline on corporations to act ever more ruthlessly while simultaneously grabbing larger shares of the profits extracted from employees — is the product of the natural development of capitalism, not an intervention. Capitalism can not be separated from markets, much less “subordinated” to its own engine.

Taking back our imagination to overturn the concrete

But let us not go overboard with critiques. Crises of Imagination, while not necessarily, per its author, an innovative work, does formulate its arguments very well, with some original conceptions. For an example, in one of the book’s strongest chapters, on the “edu-factory,” Professor Haiven wittily draws an analogy between the subordination of the university to the interests of neoliberal capital accumulation and the show trials of the 1930s. He writes:

“The desperate self-privatization of the neoliberal university is the late-capitalist equivalent of the Stalinist show trial. The broken university, after years of secreted economic torture, is made to confess its own profligacy and lack of obedience to the austerity regime. Yet even this gaunt, emaciated, broken figure, which has betrayed all its once proud (perhaps vain) values, is not spared the cuts. The constant and unending attack on the university is a grim warning to all institutions and individuals from the oblique, unapologetic totalitarian power of global capital: ‘We do not care if we are wrong or if our policies are ineffective in their stated goals. We do not care if we have to kill you all and destroy the planet. We do not care if you know it. Money will rule.’ ” [page 139]

But we do not have to accept the permanent rule of industrialists and financiers. A radical rethinking of society can’t be accomplished without our taking back our imagination, although, the author cautions, current social relations are not simply ‘imaginary’ but are rooted in concrete power imbalances. But we can’t imagine or create a blueprint for the future because the future can’t be planned and any such blueprints would contain some of the poison of today’s world. As capitalism accelerates exploitation and dislocation, the possibilities for future forms of struggle also accelerate, although they will not automatically be liberatory.

The radical imagination emerges out of radical practice, but no single practice can be sufficient on its own, the author writes. Imagination is a process of collective doing; imagination creates reality and reality creates imagination. Professor Haiven concludes:

“A revolution is not made of good ideas, but rather by good ideas materialized in social spaces. Solidarity is not a matter of having the right political ideals and sympathies, but of building real, tangible relationships. … [I]magination as a shared capacity grows out of social cooperation, alternative-building and the establishment of a new commons.” [page 265]

The reader seeking an analysis of capitalist economics can find works more on point. But anybody wanting a sweeping polemic on the totalizing effects of capitalism — and polemic here is meant in the positive sense of the word, as a constructed argument logically built — will find a well-written, engaging weapon in their hands. A fine use of the imagination engaging with concrete reality.

* Max Haiven, Crises of Imagination, Crises of Power: Capitalism, Creativity and the Commons. Zed Books, London and New York; Fernwood Publishing, Black Point, Nova Scotia, Canada, and Winnipeg, 2014]

The ‘medicine’ of the Trans-Pacific Partnership as bitter as ever

The Trans-Pacific Partnership is as dangerous as ever. Denying access to medicines, increased surveillance of Internet usage and mandatory patents at the behest of multi-national corporations are some of the corporate goodies stashed in the TPP’s intellectual property chapter, revealed by WikiLeaks this month. Journalism could even be criminalized.

The more we know about the TPP, the worse it gets, which is why the governments of the 12 countries involved, led by the Obama administration, continue to negotiate in unprecedented secrecy. The latest text of the TPP’s intellectual property chapter shows very little change from an earlier draft also published by WikiLeaks. In a press release accompanying this month’s publication of the revised text, WikiLeaks says:

“[T]here are significant industry-favouring additions within the areas of pharmaceuticals and patents. These additions are likely to affect access to important medicines such as cancer drugs and will also weaken the requirements needed to patent genes in plants, which will impact small farmers and boost the dominance of large agricultural corporations like Monsanto.”

An analysis by Public Citizen explains:

“A rule [would] require the patenting of plant-related inventions, such as the genes inserted into genetically modified plants, putting farmers in developing countries at the mercy of the agriculture industry, including seed manufacturers such as Monsanto, and threatening food security in these countries more broadly.”

The architecture of Melbourne

The architecture of Melbourne

Monsanto, already attempting to gain a stranglehold over the world’s food supply, is hardly in need of yet more favorable treatment. Proprietary seeds and genetically modified organisms are Monsanto’s routes to control what you eat and what farmers grow. Once under contract, farmers are required to buy new genetically engineered seeds from the company every year and the Monsanto herbicide to which the seed has been engineered to be resistant.

Stealth ‘fast-track’ process needed to sneak TPP through Congress

Concomitant to the secrecy shrouding the TPP is the stealth needed to pass the “free trade” treaty. The Obama administration is seeking to be given “fast-track” authority by Congress. Under the fast-track process, Congress cedes its right to make any changes, limits its time to debate, and must schedule a straight yes-or-no vote (no amendments allowed) in a short period of time. Some of the worst “free trade” deals have been approved in this manner, and the importance of fast-track is shown in that the last U.S. trade pact approved, with South Korea, was approved in 2007 — literally one minute before fast-track authority expired!

A fast-track bill, known as Camp-Baucus for its two sponsors, was essentially dead on arrival early this year due to widespread opposition in Congress, mostly by Democrats but also some Republicans. That this arose was because of organized activist work by groups across the United States. But Democratic Senator Ron Wyden, last April, signaled his intention to introduce a new fast-track bill, which he rebranded “smart track.” U.S. activists widely speculate that either Senator Wyden’s thinly disguised “smart track” bill or a more openly fast-track bill, perhaps written by Republicans in the House of Representatives, will be introduced in Congress following the November election with the intention of ramming it through a lame-duck session.

U.S. activists for the past year and a half have focused on stopping fast-track in Congress because it will be virtually impossible to pass the TPP otherwise. Other countries have signaled their reluctance to agree to a final TPP text unless Congress grants the Obama administration fast-track authority. Without such authority, Congress would retain the right to make changes to an agreed-upon treaty, potentially unraveling any deal. The Canadian government, in late September, made this reluctance explicit.

Washington Trade Daily recently reported that the Canadian ambassador to the U.S., Gary Doer, said Canada and other negotiating countries won’t conclude negotiations until the Obama administration has the “political muscle” of trade-promotion authority (the formal name for fast-track). Thus, activists advocate no lessening of vigilance against new attempts to introduce fast-track legislation. A Week of Action Against Fast Track is being organized for November 8 to 14 in the U.S. In Australia, a series of rallies opposing the TPP are taking place this week in Sydney and Canberra.

These efforts come against a renewed push for a completed deal; negotiators are meeting this week, to be immediately followed on October 25 by a ministerial-level meeting in Sydney.

Criminalizing your right to know

There is much to oppose in the Trans-Pacific Partnership itself. A trade-secrets provision in the leaked intellectual property chapter is written in a way that makes it possible for reporting the contents of a future trade deal to be prosecuted. The article in question states:

“In the course of ensuring effective protection against unfair competition … each Party shall ensure that natural and legal persons have the legal means to prevent trade secrets lawfully in their control from being disclosed to, acquired by, or used by others (including state commercial enterprises) without their consent in a manner contrary to honest commercial practices.”

Criminal penalties would be mandatory for:

“the unauthorized, willful access to a trade secret held in a computer system; the unauthorized, willful misappropriation of a trade secret, including by means of a computer system; or the fraudulent (or unauthorized) disclosure of a trade secret, including by means of a computer system.”

WikiLeaks’ publication of this text would be a criminal matter under this provision. This provision would make it mandatory for signatory governments to enact strict laws protecting undefined “trade secrets.” The text of the TPP itself is classified as a secret! Legislators and the public are excluded from seeing the text. In the United States, the only people other than negotiators to have access to the text are 605 “advisers,” who are almost all executives of multi-national corporations or corporate lobbyists.

The Age newspaper of Melbourne summarizes the threat to journalism this way:

“The leaked treaty text shows that in an effort to deal with ‘unfair competition,’ largely from Chinese industrial espionage, the United States has pushed ahead with proposals to criminalise disclosure of trade secrets across the Pacific Rim. The draft text provides that TPP countries will introduce criminal penalties for unauthorised access to, misappropriation or disclosure of trade secrets, defined as information that has commercial value because it is secret, by any person using a computer system.  …

There are no public interest or free speech exemptions. Criminalisation of disclosure would apply to journalists working for commercial media organisations or wherever the leak was considered harmful to the ‘economic interests’ of any TPP country.”

Barriers to cheaper generic medications

Other rules in the TPP intellectual property text would raise barriers to generic medications becoming available and mandating that the terms of patents be extended on demand by patent holders. The United States and Japan even propose language that would require intellectual property enforcement to be elevated above any other legal consideration! The U.S. is also seeking the criminalization of copyright infringement, even in cases where there is no attempt to gain financially, such as a fan posting a work, and would also mandate that Internet service providers remove content upon a corporation’s demand to avoid legal penalties.

The linchpin to enforcement of draconian rules — the worst of which are put forth by the United States with Japan often seconding — is the “investor-state dispute mechanism.” That is a requirement that governments submit to binding arbitration in secret tribunals when an “investor” wants a law changed; the judges in these tribunals are corporate lawyers.

The dispute mechanism is not directly mentioned in the intellectual property chapter, but the one article that purports to uphold national sovereignty is contradicted by another article that mandates that multi-national corporations be given the same rights as national corporations. That clause, standard in “free trade” agreements, is a battering ram used by the secret tribunals to order the withdrawal of laws safeguarding environmental, safety, health or labor standards. These rulings, in turn, become precedents that are used to hand down future harsher decisions.

The Trans-Pacific Partnership, however, is far from the only danger to working people. There is also the Transatlantic Trade and Investment Partnership between the U.S. and the E.U.; the Trade In Services Agreement that would eliminate the ability of governments to regulate the financial industry (50 countries are in on this one); and the Canada-European Union Comprehensive Economic and Trade Agreement. Each of these are designed to elevate corporations to the level of a country, although in practice, because of tribunal precedents, they would elevate corporations above national governments.

“Free trade” agreements have little to do with trade, and much to do with imposing the domination of capital in as many spheres of life as possible. They are massive failures for working people in all countries. They offer, and can offer, nothing but a race to the bottom. Attempting to reform a race to the bottom is a fool’s errand. The TPP and its equally vile cousins must be defeated, and a complete re-conceptualization of trade and who should benefit from trade, substituted. That in turn requires directly challenging prevailing economic systems, otherwise we will be shoveling against the tide.

A bigger pie doesn’t mean you are getting a slice

The kerfuffle between executives and shareholders of The Coca-Cola Company seems to have been smoothed over, at least for now, but no matter how much the two sides wrangle over the pie, they do agree on one crucial detail: Employees deserve nothing.

Lest we dismiss the recent plan hatched by Coca-Cola’s management to transfer to itself at least US$13 billion as a fight in which we have no dog, it does provide a case study of the mindset of corporate and financial elites, and the power of Wall Street. This is a company accused of involvement in a string of human-rights violations in countries around the world and racial discrimination in the United States, and routinely lays off employees despite raking in billions of dollars per year in profits.

The $13 billion dispute is this: Coca-Cola management proposed earlier this year to issue hundreds of millions of stock and stock options to its higher-level executives. For 2014 alone, the stock grants would have been worth about $13 billion. Enter a money-management firm that owns a couple of million shares. Loudly complaining that those billions belonged to it and other shareholders, the money-management firm’s chief executive officer declared:

“In effect, the Board [of directors of Coca-Cola] is asking shareholders for approval to transfer approximately $13 billion from all of our pockets to the Company’s management over the next four years.”

Fire and ice on Colombia volcano Nevado del Huila (photo by Martin Roca)

Fire and ice on Colombia volcano Nevado del Huila (photo by Martin Roca)

Coca-Cola’s management blinked last week, but earlier defended its stock grant by saying that the stock grants “are within industry norms.” But we need not run out of tissues crying over this transfer of wealth away from needy financiers, because Coca-Cola announced that it is reducing its previous plan. Just what the company plans to give its executives is not clear from its October 1 press release, but it did have this to say:

“Consistent with our past practice, 100% of the proceeds from stock option exercises by employees will be used to repurchase shares, minimizing dilution. This is separate from, and in addition to, our normal share repurchase program.”

What that finance-speak means is that the profits of the company won’t be spread thinner because it will buy back stock in exchange for the stock it will issue its top executives. Wall Street won this round. Coca-Cola will be using some of its profits to buy back shares from existing shareholders. This is a common practice whereby a company offers to buy stock at a premium to the trading price, giving an extra payday to those who sell and leaving the profits to be divided by among a smaller group.

Money rains upon speculators

How much largesse is rained upon financiers? According to a report by Bloomberg, the companies of the S&P 500 Index will spend $914 billion on stock buybacks and dividends this year, or 95 percent of their earnings. (Those earnings are after the multimillion-dollar payouts executives pay themselves. Oops, sorry, after the payouts granted by their cronies on their hand-picked board of directors.) Bloomberg reports that S&P 500 companies are sitting on “$3.59 trillion in cash and marketable securities and they’ve raised almost $1.28 trillion in 2014 through bond sales.”

That represents quite a pile of profits. Coca-Cola has spent billions of dollars in recent years buying back its stock. The company has plenty of money, reporting almost $45 billion in net income during the past five years. A capitalist’s profits (including the large portion shared with financiers) are created through paying employees much less than the value of what they produce. So what did Coca-Cola’s employees get for producing this wealth enjoyed by executives and speculators? The back of the hand for the most part.

Having earned “only” $8.6 billion in net income for 2013, a slight drop from a year earlier, Coca-Cola announced it would cut its annual expenses by $1 billion by 2016. Undoubtedly, a savings of that size will have to include layoffs. Already, Italian workers struck last month over a plan to eliminate 12 percent of their jobs; workers at the company’s partially owned Australian affiliate have been handed a pay freeze for 2015 with new hires starting at 40 percent less; and 1,200 Spanish jobs were eliminated by closing four plants in defiance of a court order.

All this is before we get to the many human-rights abuses in which Coca-Cola is accused. In the past, the company made big profits operating in Nazi Germany and apartheid South Africa.

More recently, the company and its business affiliates have been repeatedly accused of using paramilitary death squads to kidnap, torture and assassinate union leaders. The company denies any involvement. But being an organizer in Colombia is dangerous work — of the 213 union leaders murdered worldwide in 2002, 184 died in Colombia. In the previous 15 years, almost 4,000 Colombian trade unionists were murdered.

Child labor, violence and smuggling are it

Workers seeking to join unions in Colombia are routinely fired and threats against union activists continue on a steady basis. The activist group Killer Coke has compiled a country-by-country list of outrages in various countries, including thousands of children, as young as eight-years-old, used as labor on El Salvador sugar-cane farms that supply the company; multiple kidnappings and murders of union officials at a bottling plant in Guatemala; and, in the Philippines, the use of outsourced labor to avoid paying benefits and accusations of “smuggling” sugar into the country to avoid taxes and undercut local sugar producers.

The $13 billion that the executives and the financiers were fighting over did not fall out of the sky.

The point here isn’t that Coca-Cola is a uniquely evil company. Its arch-rival PepsiCo Inc. is spending $8.7 billion this year alone in stock buybacks and dividend payouts to make financiers happy. In the past, it was a major investor in Burma during the military régime that routinely used its citizens, particularly from ethnic minorities, as slave laborers. Pepsi exchanged its income there for Burmese agricultural products that could be sold at a profit outside the country — products often produced on the military junta’s slave-labor farms that were taken by force.

Finance capital is both whip and parasite, applying relentless market pressure to force companies to squeeze ever higher profits and extracting more wealth for itself. This is what the holy grail of “efficiency” actually means. Industrialists and financiers fight over which gets the bigger piece of the pie, but they agree they deserve the whole pie. The rest of us can shut up and get back to work. Did you vote for this?

It’d be simpler if we just gave all our money to the nearest billionaire

In attempting to comprehend the staggering fortunes possessed by the world’s multi-billionaires, consider this: There are only six countries in the world with a gross domestic product bigger than the wealth possessed by 400 richest people in the United States. Could it really be that these titans produce more than the entire country of Brazil? Or Italy? Or Canada?

At the same time, more than 47 million people in the United States rely on government food assistance, and despite the federal food-stamps program (known formally as the Supplemental Nutrition Assistance Program), there are 49 million United Statesians who go hungry at least some of the time.

These two sets of facts are not unrelated.

The corporate media breathlessly reported, once again, on Fortune magazine’s annual list of the 400 richest people in the U.S., just published. These 400, Fortune reports, have a collective net worth of $2.3 trillion — an increase of $270 billion from last year. While this top of pyramid saw their net worth rise 12% in just the past year, the net worth of the bottom 75 percent has declined by more than five percent since 2010.

SerfsThe top ten on the Fortune list are familiar. Bill Gates, thanks to leveraging the personal-computer operating-system monopoly his company was once handed, continues to rank first. The Koch brothers, David and Charles, are tied for fourth at $42 billion each and four members of the Walton family, recipients of the capital amassed by Wal-Mart Stores Inc., are each among the top ten and collectively worth $144 billion.

The best democracy you can buy

As you might imagine, those billions buy a lot of political power. The Walton and Gates families are two of the three families that are the biggest bankrollers of the effort to place education under corporate control through charter schools. The Waltons amassed their fortunes through ruthless exploitation of its workers and relentlessly pressuring its suppliers to move production to China and then Bangladesh in search of ever lower wages.

Wal-Mart also enjoys vast subsidies — the company has received more than $1 billion in government giveaways, and a study of the costs of those subsidies and the public-assistance programs that Wal-Mart employees must use due to their miserably low pay add up to nearly $1 million per store. The average pay of a Bangladeshi garment worker who makes Wal-Mart’s products is US$75 to $100 per month.

Like the Waltons, the Koch brothers inherited their company. Koch Industries is one of the country’s worst polluters of the air and water as well as a major source of greenhouse gases. They are spending hundreds of millions of dollars in an effort to buy Congress and state legislatures in this election cycle alone; are major funders of the extremist American Legislative Exchange Council (ALEC) that literally writes legislation for its corporate membership; and even attempted to take control of the Cato Institute, the far-right libertarian “think tank” that, despite agitating for the end of Social Security, was apparently not extreme enough for them.

The struggle for tens of millions to eat

At the other end of the spectrum, the charity organization Hunger in America estimates that 49 million people in the U.S. are “food insecure” and that 20 percent of the country’s households with children are food insecure. But those figures are based on U.S. Department of Agriculture statistics that are considered likely to be conservative. For example, the Food Research and Action Center, in its most recent study (for 2012) reported that 18.2 percent of those surveyed in a poll conducted by Gallup answered yes when asked if they did not have enough to eat at least once in the past 12 months. That translates to 57 million people.

The more than 47 million people who relied on food stamps in the U.S. in 2013 is an all-time high and, by way of comparison, the $80 billion cost of the program is less than the net worth of brothers Charles and David Koch. That net worth keeps rising despite the money they pour into their political pressure groups; the two have more than doubled their fortune in just the past four years. The cost of food stamps is also comparable to the $78.4 billion in profits that Wal-Mart has racked up in its five most recent fiscal years.

Let us remember that profit comes from a capitalist paying employees less than the value of what they produce. As Karl Marx demonstrated, the value of a product would be the same if the workers sold the commodity themselves, thereby retaining the full value of what they produced rather than having much of it taken by the capitalist. The portion taken by the capitalist therefore is the source of the capitalist’s profit and not the circulation of the product.

There is a reason that we are enduring a decades-long race to the bottom. Although the corporate press would like you to believe the propaganda that vast fortunes result from the magical acumen of captains of industry, the reality is ruthless exploitation. Inequality does not fall out of the sky.

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.