U.S., opposition claims on Venezuela election fall apart under scrutiny

Although any country that challenges domination by United States corporate or military power will inevitably be the target of a sustained demonization campaign, the lies consistently issued in a torrent against Venezuela are beyond the usual level of invective. Venezuela is the most lied-about country in the corporate press of the Global North, especially in U.S. corporate media outlets.

That Venezuela has sought to align its economy to benefit its own people, instituting an impressive array of social services, health programs and political structures to facilitate grassroots participation, has drawn the consistent ire of U.S. authorities. An unrelenting cascade of lies is necessary to generate public support for the unrelenting campaign targeting the Bolivarian Revolution.

We’ve had more than a month of daily screeds declaring the Venezuela President Nicolás Maduro has lost his bid for re-election. How is this determined? The U.S. government declared that Maduro must go, continuing an offensive that began as soon as took office following the untimely death of Hugo Chávez. That seems to be all the “proof” needed. The right-wing opposition to Maduro and the United Socialist Party of Venezuela (PSUV) screamed that it would not recognize the results of the July 28 election months ahead of time — if they were so confident of victory why denigrate the election in advance? — and predictably screamed louder when the results were announced.

Before we dive into the details, which leaves the opposition’s case too weak to be sustained, let’s think about a parallel. Donald Trump and his fascist wanna-be followers said any result in which he lost to Joe Biden would not be recognized and four years later they continue to insist on a Trump victory. Even the most cursory examination shows the speciousness of the Trump gang’s complaints, and every court challenge has been swiftly swatted down. Or in Brazil, another aspirant to a dictatorship, Jair Bolsonaro, similarly claimed the vote was rigged; nobody other than his hard-core followers takes such claims seriously.


Venezuelans rally for the PSUV (photo by Francisco Trías/Tricontinental)

Why then should we take the claims of the Democratic Unitary Platform (PUD) opposition coalition and its candidate, Edmundo González, seriously? The PUD has yet to provide definitive proof that it won the election, much less with an absurd 70 percent of the vote. Given the large reservoir of support for the Maduro administration and the PSUV, the PUD would have given itself a modicum of respectability had it conjured a more plausible total, say just above 50 percent. Just on the basis of the 70 percent claim, already our eyebrows should be raised. Using the work of investigative reporters who have delved into the alleged voting records, which will be discussed below, the opposition’s claims fall apart. But even without that investigation, what locales have been presented? Undoubtedly, there are neighborhoods where the PUD did score 70 percent or perhaps more. But how representative are those? Another question not asked. But the investigations reveal that even most of these alleged voting records posted online by the PUD are doctored. In plain language, the evidence indicates they are not real.

To be sure, it would be for the best for Venezuela’s National Electoral Council (CNE) to post the detailed records so many, not only the opposition, demands. Under Venezuelan law, the CNE had 30 days to post those results and we are past that deadline. An online newspaper that supports the Venezuelan government, the Orinoco Tribune, on September 3 issued a call for the prompt publishing of the detailed election results, noting the cyberattacks and attacks on the country’s electricity system that undoubtedly have hampered the CNE’s work but nonetheless pointing out alternatives to publishing on its website that should be utilized promptly. These delays only add doubt to an already controversial situation.

Interestingly, but of course not surprisingly, there has been not a word in U.S. corporate media about the one party that was blocked from a candidate of its own choosing — the Communist Party of Venezuela (PCV). A ruling by the Supreme Court shamefully imposed a new leadership on the PCV, which the party sternly denounced as an illegal intervention in its internal affairs. The PCV said the seven people the court imposed as its new leadership are not party members and thus cannot occupy party offices. As a result of this gross interference, the PCV did not run a proper campaign because the imposed leadership backs Maduro. Even firm supporters of the PSUV government should condemn this meddling.

Why did the opposition refuse to participate in the examination?

What stands out here is that the PUD would not provide its alleged evidence to the Supreme Court of Venezuela after President Maduro asked that the high court examine the results announced by the CNE. There were eight other candidates other than President Maduro and Ambassador González. Yet Ambassador González was only one of the 10 candidates to refuse to provide the ballot records in their possession. All nine of the other candidates did so. Instead, the PUD created a website and posted their alleged ballots online, a violation of Venezuelan law that states only the CNE, an independent governmental branch, is authorized to do so. (How these ballot records are created and why candidates and parties would have them will be explained below.)

The Orinoco Tribune reported on August 23, in an article detailing the process the Supreme Court followed, “the magistrates concluded that the bulletins issued by the CNE were supported by the voting records transmitted by each of the voting machines and are in full agreement with the data provided by the national aggregation centers.” This was predictably denounced by Ambassador González, the PUD and the PUD’s leader, María Corina Machado, who has been involved in more than one plot to forcibly unseat the government. It can also be noted that the PUD includes the two discredited corporate parties, Democratic Action and COPEI, that had alternated in power until the sweeping Chávez victory of 1998 brought about the Bolivarian Revolution, which those parties have bitterly opposed every since, to the point of endorsing the 2002 coup that unseated Chávez for two days before popular resistance put him back in power.

If the PUD really possesses evidence of fraud, as they continue to loudly assert, why won’t they put forth their evidence? Their refusal should raise doubts, but evidently not for the corporate media, faithful stenographers of the U.S. government and U.S. multinational capital on all things Venezuela. Notably, all other candidates attended an August 2 Supreme Court hearing, held as part of the electoral audit process. At this hearing, all presidential candidates were formally notified that they were required to submit “all required legal documents of juridical relevance,” including all ballot records.


Venezuela remains in the cross-hairs (photo courtesy of Venezuelanalysis)

Other candidates contesting the presidential election confirmed their participation in the Supreme Court’s examination. One of those candidates, Claudio Fermín of Soluciones, called for all candidates to back their claims with evidence. He said, “What is not comprehensible is that some claim to have the voting records [that backed their electoral victory] but do not submit them [to the court]. The instance to resolve this matter is the Electoral Chamber of the Supreme Court of Justice, not social media or a virtual court, and much less the heads of state or ambassadors of six or seven foreign powers.”

One of the reasons the far right opposition cites for its alleged landslide victory are polls that supposedly predicted a González landslide victory. But whose polls? The poll cited was produced by an outfit called Edison Research. It has been reported that Edison Research is a “firm that is closely linked to the US government and does work for US state propaganda outlets that were founded by the CIA,” according to an Orinoco Tribune report. The Edison exit poll forecast a 65 percent share for Ambassador González. The Tribune report noted that the polling firm Hinterlaces, which the newspaper called “the most respectable independent firm in the country,” estimated that President Maduro would receive 54.6 percent of the vote in its exit poll. This latter exit poll has of course been ignored by the corporate media. According to the Tribune, Edison’s top clients include the Voice of America, Radio Free Europe/Radio Liberty, and the Middle East Broadcasting Networks, each of which is a propaganda arm of the U.S. government. The original funder of Radio Free Europe/Radio Liberty is the Central Intelligence Agency.

Are the ballots published online by the Unitary Platform legitimate?

Let us now turn to the ballot records published online by the PUD that the far right coalition claims reveals irregularities in the CNE’s announced vote totals. A Spanish investigative reporter, Román Cuesta, examined the PUD documents from Tinaquillo, a city in the state of Cojedes, which he chose at random. Mr. Cuesta’s results were detailed by Misión Verdad, which describes itself as a consortium of independent researchers. According to Mr. Cuesta, of the 61 documents representing 61 polling stations, 52 were faked. These 52 documents contained “irregularities such as flat signatures, presumably false signatures, incomplete QR codes and the lack of the digital signature code of the voting machine.” Furthermore, Misión Verdad reported, “He also highlighted irregular patterns and signs of forgery in the signatures found, which in several cases look more like a free drawing than a personal signature. Once again, the lack of signatures was present, a serious irregularity in an electoral record that claims to be genuine.”

Mr. Cuesta found that “85% of the records from the municipality of Tinaquillo have problems with signatures, incomplete QR codes and a complete lack of machine codes.” These irregularities are significant, Misión Verdad reports:

“The problem of QR codes and machine codes is especially important since, due to an incomplete QR code, or the absence of codes, said document cannot offer reliable information about a polling station and, consequently, cannot be verified. This gives rise to the presumption of data tampering or editing of the opposition ‘records’, as established by the metadata analysis. If these have been edited and new numbers have been added to favour Edmundo González Urrutia, by eliminating the QR codes and codes from the machine, the information will be unverifiable.”

The Bosque de el Valle in Mérida state (photo by Jorge Paparoni)

In reporting on the PUD’s problematic documents, the Spanish online newspaper Diario Red said many opposition documents lack the signatures of witness from the participating parties as well as those of the operators of the machines used in the process, contrary to Venezuela electoral law that these signatures are mandatory (and that any party observers may record any reservations they may have). Furthermore, in “hundreds of cases,” signatures appear to be forgeries, because “the signatures of the members of these electoral tables appeared duplicated and when comparing them, it was evident that the shape of the letters and the movement patterns pointed to a possible forgery” and that stamps and fingerprint scans are often placed on top of signatures, making it impossible to verify them. There are also differences in the spelling of names printed on ballots and how those names were signed.

Questions about the PUD documents had already been raised — the Diario Red report says that “Several opposition parties have already complained that the results of their votes do not match those they posted.” The Diario Red report concludes with a damning summation:

“The opposition’s strategy included several parallel maneuvers, essential for the coup to be successful. One of them was based on the publication of this page full of manipulated minutes, after making the counting process difficult with computer attacks on the Venezuelan electoral bodies, to create the favorable climate inside and outside the country.”

Do analyses of voting trends provide support for the opposition claims?

Two analyses of Venezuelan voting patterns, comparing the turnout and results of the July 28 election with two decades of past voting also raise doubts about the opposition claims. Of course, voting patterns can change and any individual election can result in a change from past elections. But even President Maduro’s total of 52 percent on 6.4 million votes, as announced by the CNE, represents a weaker showing than past presidential elections for the PSUV candidates. Ambassador González polled 43 percent on 5.3 million votes. Only one other candidate reached even 1 percent.

How do these figures comport with Venezuelan voting patterns, as compared to the vote totals asserted by the PUD opposition bloc? A detailed analysis published in Venezuelanalysis, noting President Maduro’s support declining from 68 percent in 2018, asks: “Does this suggest that Maduro’s popularity is waning and that he could not have possibly won the 2024 vote? Not necessarily.” The major opposition bloc boycotted the 2018 election and the resulting abstentions swelled the percentage for the PSUV and resulted in the lowest participation level of any presidential election going back to the late 1990s. For the 2024 election, the 6.4 million votes cast for President Maduro represents a decline from recent presidential elections but is within reasonable range of those results. The lowest total of any election since the 1998 election of Chávez was the 4.4 million votes cast in the 2007 constitutional referendum that the PSUV government lost by two percentage points, on a turnout similar to the 2024 presidential election. Yet the PUD claims that President Maduro won only 3.3 million votes.

Of course, voting totals for an incumbent can decline, sometimes sharply. But is PUD’s paltry total realistic? The Venezuelanalysis analysis finds it is not. “[T]he 6.40 million votes for Maduro’s Partido Socialista Unido de Venezuela (PSUV) on July 28 is entirely plausible, while the insane claim of the fictitious U.S.-driven sweep is not at all convincing. On the contrary, the figures show that the only fraud consists of the opposition’s posturing,” the analysis concludes. It should be noted that Venezuelanalysis is consistently an excellent source of information; although it is broadly supportive of the Bolivarian Revolution it also routinely publishes articles critical of the PSUV.

Hugo Chávez swearing in as Venezuela president in 2013 (photo by AVN, Prensa Presidencial/Venezuelanalysis)

A separate analysis, published by Misión Verdad, also notes that the 3.3 million vote total put forth by the PUD opposition would be wildly out of line with all previous voting patterns. Such a total would represent a dramatic decline in government support despite the fact that a far smaller decline was seen from 2013 to 2018, when Venezuela’s economy, under severe stress due to U.S. sanctions, was in far worse shape. A vote total of 3.3 million would represent “a notably adverse national context or with such a serious negative accumulation that it would have implied the rupture of the cohesion of the Chávista forces and their support base in a deep, generalized and extended way. A party could consolidate its support base only in extraordinary circumstances. The 2018-2024 period has not seen such upheavals.” And although difficulties certainly remain for Venezuelans, for this election, “the exchange rate was stabilized, hyperinflation was stopped, and price increases were minimized,” Misión Verdad writes. Thus, a significant drop in support would be more plausible for 2018 than for this year.

Additionally, the grassroots base of the PSUV remains intact. “There are more than 5 million active militia members, who are fully identified with Chavismo,” Misión Verdad writes. “The PSUV party has an organizational structure of 300 thousand street and community leaders.” Adding “100,000 social and community organizations, parties and movements of various kinds that form a support base,” outside the PSUV (the PSUV technically ran as the largest component of the Great Patriotic Pole), the Misión Verdad analysis estimates a base of at least 6 million, meaning that an implausible half of the engaged Chávista movement would have not voted or voted for the opposition, something that has never come remotely close to happening. Finally, because the PSUV base routinely turns out for presidential elections, while opposition voters are much less consistent, the opposition does better in high-turnout elections. But the July 28 election did not see a high turnout; with 58 percent of eligible voters casting a ballot, it falls in the broad middle of historic turnouts.

It might also be noted that the PUD’s program of dismantling the social advances of the Bolivarian Revolution and selling off the country’s assets, including privatizing the state oil company, are widely disliked, certainly by the Chávista base that hardly could be persuaded to vote for destroying all that has been built over 25 years.

Does Venezuela still have its “best in the world” election system?

Admittedly, that is a subjective question without a definitive answer, but it can be noted that former U.S. President Jimmy Carter, then at the helm of the Carter Center, once called the Venezuelan election system “the best in the world.” To support that assessment, the Carter Center said in 2012:

“One of the key aspects of the security control mechanisms involves the construction of an encryption key — a string of characters — created by contributions from the opposition, government, and [National Electoral Council], which is placed on all the machines once the software source-code has been reviewed by all the party experts. The software on the machines cannot then be tampered with unless all three parties join together to ‘open’ the machines and change the software. In addition, each voting system machine has its own individual digital signature that detects if there is any modification to the machine. If the voting count is somehow tampered with despite these security mechanisms, it should be detectable … because of the various manual verification mechanisms.”

Sadly, the Carter Center within a day of the July 28 election, denounced the results, asserting that it “did not meet international standards of electoral integrity and cannot be considered democratic.” The Center based this on the CNE’s “failure to announce disaggregated results by polling station,” although Venezuela law allows for 30 days for those results to be published, not one day. The Center asserted that there were “relatively few places of registration” but acknowledged that “Venezuelan citizens turned out peacefully and in large numbers to express their will on election day.”

That is a strong contrast with the report issued by the National Lawyers Guild, an organization of U.S. lawyers who also had observers in Venezuela. On July 29, the Guild said its “delegation observed a transparent, fair voting process with scrupulous attention to legitimacy, access to the polls, and pluralism.” In an August 9 statement, the Guild announced that it “disputes repeated Carter Center press statements” and that the Center has failed to use necessary “care and caution” in its statements. The Carter Center has shifted strongly to the right and now mirrors U.S. government policy. In the August 9 statement, the National Lawyer Guild issued this summary:

“It appears that Carter Center leadership has shifted to the right over the last several years, impacting its overall work in the US and around the world.  The Center’s Chief Executive Officer, Paige Alexander, worked for [the United States Agency for International Development] for over 15 years, now called “the new CIA.”  She also sits on the southeast chapter board of the widely discredited Anti-Defamation League, which as recently as 2017 advised local police to plant undercover agents in anti-racist organizations in the US. A recent Center for Constitutional Rights report demonstrated how they use counterterrorism laws to target Palestinian solidarity organizers in the U.S., undermining free speech and civil rights. Jennie K. Lincoln, the Center’s senior advisor on Latin America and the Caribbean, is a former consultant with the Organization of American States, from which Venezuela withdrew in 2017 after repeated OAS attempts to undermine Venezuelan democracy and foment instability. Although we recognize that the Carter Center’s Democracy Program is praised for its election monitoring across the world, we are concerned that their funding sources, which include the US State Department, USAID, EU and UK government, make them vulnerable to imperialist political pressure. This may explain the hastiness of the Center in issuing its various statements and paralleling the US news cycle.”

The Guild also took exception with the Center’s statement that voting was peaceful, saying that in the last hours of voting, “violent mobs targeted polling stations across the country to prevent the counting of the voting receipts and the distribution of the tallies” and that the Center “also failed to note the targeted attacks on election observers.” These violent disruptive activities were observed first-hand by its observers, the Guild said. Nor has the Center made any reference to the “violence unleashed by the US-backed opposition,” with attacks on buses, security personnel, a hospital and the murder of two PSUV supporters. It should also be noted that the Agency for International Development is notorious for its political interference in countries around the world. 

How does the Venezuelan election system work?

Separate detailed explanations have been published online by Venezuelanalysis and Orinoco Tribune. Here we will briefly summarize these explanations.

According to Venezuelanalysis,voters go to the polls “with their national ID card with their unique ID number, photo, and fingerprint on.” No other identification is needed. Biometric authentication is used to activate voting machines. Votes are stored on the machines in random order to further ensure the integrity of votes. But prior to the actual vote, an extensive process is used to safeguard the vote, Venezuelanalysis writes:

“Venezuela’s entire electoral process has and will go through 16 different audits per process. These audits include auditing of the electoral register, the software, the voting books, the hardware, etc. Each audit is not only presided over by international observers, but also representatives of each participating political party. It is common for representatives from right-wing parties which later criticize the electoral process to make use of their right to send representatives to each audit, signing that they are happy with proceedings at the end.”

After voting on a machine, there is a physical printout that voters can check to confirm their vote was recorded accurately, and the printed receipt is deposited in a box, which can be monitored by any representative, so that results as recorded electronically can be confirmed. The vote itself was witnessed by international observers. The paper printouts are integral to the system, Venezuelanalysis writes:

“Once tally scrutinization on the machine finishes, a random paper ballot audit is announced where the machines to be audited are randomly selected drawing numbers, and the machine’s serial number is recorded. 53% of all voting machines in the country are audited on voting day before totalisation. This audit is public (a citizens audit) meaning that members of the community can come into the voting center to observe and corroborate the process. The audit checks totalisation tallies per candidate between the electronic result and the physical paper receipts in the box which is now opened. … The audit report is signed by election poll staff and observers from each party present, then sealed and handed to the military for delivery to the CNE. Copies of the report are handed over to the representatives of the two highest vote-getters.”

In its report detailing the election process, the Orinoco Tribune noted several steps that are taken, including audits of the machines and their software, and verifications of eligible voters. The system that the Carter Center earlier found excellent continues to be used.

Will foreign support swing behind the election results?

The unrelenting U.S. government campaign against the return of President Maduro to Miraflores Palace — the Biden administration had made it abundantly clear it would not accept any result other than the one it wanted — seems to have had an effect. Brazilian President Luiz Inacio Lula da Silva and Colombian President Gustavo Petro, although issuing tepid calls to respect Venezuela’s sovereignty, have called for a re-vote, implying that the results of July 28 should not be recognized. Lula, for whatever reason, seems to have lost his nerve and perhaps has momentarily forgotten the long history of U.S. imperialism and interference in Latin America, including U.S. participation in the 1964 coup that brought a brutal military dictatorship to power in order that the Brazilian economy be oriented toward U.S. goals.

Less surprising is the condemnations issued by Chile President Gabriel Boric, who has steadily moved rightward since winning election on a wave of left and left-center support. President Boric said he refuses to recognize President Maduro’s “self-proclaimed” victory, saying he has “no doubt” there was electoral fraud. That echoes the stances taken by the right-wing heads of state in South America, including Argentina. In response, the president of the Communist Party of Chile, Lautaro Carmona, said his party does recognize President Maduro’s victory. The C.P. of Chile is a part of President Boric’s coalition. The party previously said the international community should “refrain from adopting positions that could foster a climate of confrontation.”

A Misión Verdad commentary speculated that condemning President Maduro is a “lifeline” for President Boric, a lifeline needed because of resistance to his rightward turn from within his coalition and intensified pushback by the congressional opposition with elections scheduled for later this year and in 2025. The Chilean right, like its counterparts elsewhere, has furiously denounced the July 28 election results and has demanded President Boric do so; in addition, the U.S. is Chile’s biggest trade partner.

If there is any one certainty in this affair, it is that the unrelenting hostility of the U.S. government will continue. From the Bush II/Cheney administration’s support for the 2002 coup against Hugo Chávez, to the Obama administration’s declaration of Venezuela as a “a national security threat” to the Trump administration’s repeated threats of a military invasion and escalation of sanctions to the Biden administration’s continuation of his predecessor’s policies — all done with inhumane sanctions that in 2018 alone caused 40,000 deaths with an estimated 300,000 people considered “to be at risk because of lack of access to medicines or treatment.” These sanctions, targeting an entire population, are illegal under both U.S. and international law. The United States is able to enforce its sanctions, and force other countries to comply, because of its stranglehold on the world financial system, the linchpin of which is the use of the U.S. dollar for most international transactions.

The U.S. government possesses a power that no country has ever held, not even Britain at the height of its empire. And that government, regardless of which party or what personality is in the White House or in control of Congress, is ruthless in using this power to impose its will. And that government also covets access to Venezuelan oil on its terms, not on Venezuelan terms. We do well to consider the full spectrum of international interests before drawing conclusions about a Global South country, particularly one long the target of lies, sanctions, coup attempts and imperial maneuvers.

You are not alone if you are out of work

We are endlessly and repetitively treated to sermons on the wonders of capitalism. Everybody will be taken care of, with the proviso that you are willing to work. As I have had frequent cause to note, that a line has to be furiously propagated across every channel speaks to a lack of concrete reality. And as more people, especially young people, see that they have declining possibilities, more questioning inevitably arises.

The only thing worse in capitalism to having a job, however unpleasant, is not having a job. Unemployment benefits are barely at starvation rates and end all too soon. Naturally, that is worse in the United States than most other advanced capitalist countries of the Global North. Six months is the limit set at a rate well less than half of what your wages were in the job you just lost. And given that six months is the average time necessary to secure new employment, that means around half of those collecting unemployment insurance will likely have a spell of no income at all.

Moreover, the official unemployment rates issued by the world’s governments drastically understate how many are in need of full-time, regular work. And, in turn, the number of those with regular employment or seeking regular employment drastically understates the lack of jobs out there.

How large is the shortage of jobs? So large that only a little more than one-third of the world’s workforce has a formal job! To this we will return below.

The official unemployment rates understate the true extent of joblessness because they report only those collecting unemployment benefits and are actively searching for work (often the latter is necessary to qualify for the former). Your unemployment benefits ran out? Congratulations! You are no longer counted as unemployed. Maybe your landlord will not collect the rent until you are employed again since you are no longer an unemployment statistic? No, I suppose not. But if you are out of work, you are far from alone. Just how not alone? Let’s see if we can quantify that, first for a few countries and then for the world.

The old Vancouver Stock Exchange Building (photo by mafue)

The official U.S. employment rate for May 2024 is 4.0 percent. That is certainly far better than the 14.8 percent reported for April 2020 when the Covid-19 pandemic forced a closing of much of the economy. But how real is that 4.0 percent statistic? Not at all realistic, even though this is the standard rate faithfully reported by the corporate media every month. That is not to say that the 4.0 percent statistic is wrong, based on the definition used to calculate it. Rather, it is quite inadequate. The better measure is the U-6 statistic that is also issued by the U.S. government but invariably ignored. 

What is the U-6? This number represents all who are counted as unemployed in the “official” rate, plus discouraged workers, the total of those employed part time but not able to secure full-time work and all persons marginally attached to the labor force (those who wish to work but have given up). That figure is 7.4 percent for May. That comes closer to representing the true state of employment — and that 7.4 percent is actually better than the long-term average of 10.1 percent. Typically, the U-6 is somewhere near double the “official” rate.

Even the U-6 statistic doesn’t necessarily fully capture the lack of jobs. A better indication of how many people have found work is the “civilian labor force participation rate.” By this measure, which includes all people age 16 or older who are not in prison or a mental institution, only 62.5 percent of the potential U.S. workforce was actually in the workforce in May 2024. That is a significant drop from the peak of 67.3 percent in May 2000, and the number has steadily drifted downward across the 21st century, except for a short-term drop during the 2020 pandemic that has since been reversed. Want more bad news? The percentage of the U.S. gross domestic product going to wages had fallen to 42.8 percent in 2023. Since 2011, the percentage going to wages has been the lowest it has ever been since the statistic began being tracked in 1929. This decline — the flip side of skyrocketing corporate profits — is long-term. The peak of 52 percent was reached in 1969.

A lack of jobs around the world

In Canada, we find much the same situation. The “official” unemployment rate was 6.2 percent for May 2024. But how high is Canadian unemployment when everybody is counted? The closest Canadian equivalent to the U.S. U-6 rate is the R8, which nonetheless counts people in part-time work, including those wanting full-time work, as “full-time equivalents,” thus underestimating the number of under-employed. The R8 for May is 8.5 percent. What might the actual percentage of Canadians lacking full-time work be? We can extrapolate from an analysis published by The Globe and Mail analyzing unemployment in 2012, which estimated the true unemployment rate for that year to be 14.2 percent as compared to the R8 figure of 9.4 percent. Thus if we apply the same ratio, the true Canadian unemployment rate must be above 13 percent.

Attempting these adjustments for other countries is difficult as statistics equivalent to the U.S. U-6 or Canadian R8 are not generally made available. Britain’s official unemployment rate is reported at 4.4 percent for February to April 2024. That rate counts 1.5 million Britons. According to a BBC report, there are an additional 1.7 million people who “said they wanted a job.” So if we count them, we arrive at a reasonably true unemployment rate of perhaps 9 percent.

The European Union reports an unemployment rate of 6.0 percent. The EU does provide a statistic for those counted as unemployed by the standard measurement, plus others out of work and part-time workers seeking full-time work (although difficult to find) and the latest statistic is 12.3 percent for 2022. Australia is also reluctant to make known the full extent of unemployment. For May 2024, the Australian Bureau of Statistics reports an “official” unemployment rate of 4.0 percent and an underemployment rate of 6.7 percent. The latter rate includes part-time workers wishing full-time work. Australia does have an “extended labour force underutilisation” rate but does not seem to make this statistic available. In February 2017, the rate was given as 15.4 percent at a time when the official rate was 5.8 percent, so it is reasonable to estimate the true percentage of Australians without full-time work is more than 13 percent.

The bottom line as we sort out all these statistics is this: Capitalism does not provide anywhere near enough jobs. We have thus far examined countries among the Global North. Not surprisingly, the numbers get considerably worse when we zoom out to examine the state of the world as a whole.

Just how unable is the world capitalist system’s ability to provide for working people? As mentioned above, only a little more than one-third of the world’s workers have secured regular employment. Hard to believe? The numbers are there. The International Labour Organization published a report, “World Employment and Social Outlook,” in May 2024 that calculates the total of the world’s formal workers is 1.48 billion. That doesn’t mean, of course, that all those folks earn an adequate wage — we can safely assume that is far from the case — but these at least have regular employment. Those workers represent only 38 percent of the world’s workforce. To put that 1.48 billion total in perspective, the number of workers with only informal employment is 2.03 billion and there are another 402 million without work at all. This last statistic is fairly comparable to the U.S. U-6 statistic — the 402 million are the total of those “officially” counted as unemployed, plus all those without work who do want a job. That works out to a global unemployment rate of 10.3 percent. Those with only informal employment constitute another 52 percent of the world’s workforce.

It’s worse in the Global South and for women

What sort of system fails so drastically to provide the means to earn a living? And as capitalism’s relentless, uncontrollable competition continually intensifies, and thus the ever-present mechanization, layoffs, work speedups and all the rest of the techniques used to boost profits and thus maintain competitiveness, the percentage of employees with stable, regular employment will decrease in future years.

“Development” will not be a path out of this trap for the Global South, where, to nobody’s surprise, the jobs picture is much more dire than in the world’s advanced capitalist countries. Then there is the enormous wage and employment gap between men and women, also significantly more acute in the Global South than the North.

The total number of those without work around the world (the 402 million mentioned two paragraphs above) is referred to as a “jobs gap” in the International Labour Organization (ILO) report. The jobs-gap rate for the Arab region is 20.5 percent and for Africa 17.4 percent. Although not noted in the report, this surely provides much of the explanation for the immigration crisis.

The Blue Mountains from the lookout in Blackheath, Australia (photo by Gemm347)

When broken down by sex, the gap between men and women becomes stark, and wider the lower a country’s income level. For high-income countries, the jobs-gap rate is 7 percent for men but 10 percent for women. For low-income countries, the jobs-gap rate is 15 percent for men but 23 percent for women. The ILO reports summarized this discrepancy as follows: “In 2024, the ILO estimates that 45.6 percent of women (aged 15 and above) are employed, compared to 69.2 percent of men, a gap of 23.6 percentage points. This gap is much larger than what the labour underutilisation indicators would imply, including the most broadly defined jobs gap indicator.”

Why such a discrepancy? The report states:

“A novel empirical ILO analysis shows that family responsibilities are a key driver of the gender gap in employment rates. … It must be highlighted that family responsibilities explain a large share of the observed gender employment gap across all income groups. In low-income countries, the estimated effect of family responsibilities accounts for 62 per cent of the gender employment gap. In high-income countries this share reaches 80 per cent and it is close to 76 per cent in middle-income countries.”

A one-sided responsibility for child rearing, care for relatives and other household work is a substantial contributor to the differences in male and female employment. 

“Given these results, it seems likely that social norms concerning the organisation of unpaid care work, coupled with deficits in care services, are critical factors behind the observed employment penalties. First, women generally bear disproportionate childcare responsibilities. Moreover, the effect of this can become entrenched through a deterioration of job prospects that can last well beyond the first few years of a child’s life. Second, even in the absence of children in the household, women devote a disproportionate amount of time to unpaid care work compared to men. In ILO 2018 the authors find in a sample of 11 countries that daily hours spent in unpaid care work by women in households with no children average 3.7, which increase to 6.1 daily hours in households with small children. For men, daily hours on unpaid care work are 1.7 with no children and 2.2 with small children in the household. This suggests a disproportionate share of time devoted to unpaid care work beyond childcare, whether for household upkeep or care of relatives other than children.”

As a result, the wage gap between men and women persists, and as with employment prospects, the gap is greater in lower-income countries. In high-income countries, the ILO calculates that women earn 73 cents to the male dollar and in low-income countries only 44 cents. That also means women are more likely than men to be in precarious (informal) employment and in turn wage differentials are larger in informal than formal work.

Going beyond trying to reform the unreformable

As is standard with these sorts of reports, there is useful information demonstrating a problem but concluding with the weakest tea possible in suggested solutions. True to form, the ILO report concludes by suggesting “social dialogue at all levels, aimed at promoting inclusive, equitable, and effective public policies that resonate with societal needs and promote human dignity for all.” There is nothing wrong or bad about those suggestions, but we really ought to be far beyond the point where a polite discussion with the world’s power brokers could be seen as anything other than a farce.

Human dignity and the provision of social needs are surely what is needed. But are the world’s capitalists, who grow wealthy and powerful under the current world economic and political system, and all the institutions that keep them in power and animated by the governments that promote the wealth and power of capitalists, really going to change their ways once the world’s unfairness is explained to them? Santa Claus and the Easter Bunny will be riding on flying pigs and elephants before that happens. Capitalism is working as intended, and its beneficiaries can’t, as a class, be expected to “see the light” no matter how nicely inequality is explained to them. A single capitalist, or heir to a capitalist fortune, might decry the world’s vast inequality and act on that, but an entire class is not going to commit economic suicide. Nor is any percentage beyond a minuscule number. 

What do the high representatives of capital have to say about the state of the world? Commentaries by orthodox economists, conservative think tanks and business publications such as Forbes say the problem is that wages are too high. The U.S. Federal Reserve, the world’s most important central bank, agrees that wages are too high. Cutting wages and lowering already low taxes for corporations and the wealthy are routinely promoted, despite higher taxes leading to more jobs. The International Trade Union Confederation yearly issues a report on the state of labor, and every year finds that not one country on Earth fully respects labor rights; in its 2023 study, only nine countries were merely “sporadic violators of rights.” One of the leading institutions used by the most powerful capitalist countries to leverage their power in the rest of the world, the World Bank, routinely funds massive infrastructure projects that can each displace tens of thousands of people, disrupt the livelihoods of hundreds of thousands and are often imposed with violence. The list could go on and on, but I’ll note just two more related items: the US$10 trillion handout to the financial industry through programs artificially propping up financial markets in just the first two years of the Covid-19 pandemic, on top of the further trillions handed out to business in those years while employees received crumbs and layoff notices.

Can this really be reformed? No. Working people are losing one of the most one-sided wars in human history. The hyper-competitive nature of capitalism, under which our labor is a commodity, can’t be altered; at best through massive effort reforms can be achieved until the next wave of attacks commences. As long as we continue to fail to question the world economic system, our conditions will only worsen. But questioning that system is only the first step in a long journey; changing the system to one centered on meeting human needs in a sustainable, environmentally sound manner is what is needed. Call that system “economic democracy” or “socialism” as you wish. Once again, that or barbarism is the choice to be faced.

Capitalism can’t overcome the laws of physics

You can’t have infinite growth on a finite planet. That should be a commonplace idea. And that inevitably means facing up to the necessity of putting an end to capitalism in favor of an economic system of rationality, sustainability and equity for all the world’s peoples.

It can’t be said too many times that the concept of “green capitalism” is a chimera. Unfortunately, belief in that chimera is not limited to the world’s center-left political parties; it extends to the world’s Green parties. Various “Green New Deal” programs have been floated in recent years, generally revolving around a massive buildout of renewable-energy infrastructure and strengthening the social safety net. On their own, there is no rational argument that such programs, should they materialize, would not provide some benefits. But how transformative are such programs?

Here is where “green capitalism” rapidly falls apart. Liberal assertions that a transition to a green economy will be virtually cost-free are unrealistic. The costs of a transition to a greener economy are much less than the costs will be of continuing business as usual — how much will a three-meter rise in the sea level and massive disruptions to agriculture cost? — but the need to transition millions of employees to new employment, retrofit or replace transportation systems, adjust to new trade patterns and have access to less energy shouldn’t be minimized. And the infrastructure to build solar panels, windmills and all else will use large amounts of resources, including toxic “rare earth” minerals. Renewable energy, although vital if we are to have a future, isn’t a shortcut to reversing global warming.

The power of nature prevails (photo by Hans Kreder)

A fundamental problem is that capitalism is dependent on consumerism. Household consumption (all the things that people buy for personal use from toothbrushes to automobiles) constitutes 60 to 70 percent of a typical advanced capitalist economy’s gross domestic product; it is because of this dependency that so much money and effort is put into advertising and marketing, creating “needs” we didn’t know we had, and the pervasiveness of “planned obsolescence.” 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. 

Two statistics that provide perspective on the high cost of new and improved: About 40 percent of U.S. landfill waste is discarded packaging and the cost of packaging constitutes 10 percent to 40 percent of a product’s retail price. No rational system would propagate such waste, but capitalism is not rational; the endless pursuit of profit for a small number of people at the expense of everybody else and indifference to environmental cost are the natural consequences. “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, wrote Richard Smith in his 2014 paper “Green capitalism: the god that failed.” 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.

What has just been discussed is serious enough. But what if the impossibility of capitalism continuing for the foreseeable future is not only its inherent contradictions and destructive tendencies, as discussed above, but also due to physical limits? Endless growth, and a system that needs endless growth to survive, is not only impossible due to the finite nature of natural resources, the repression and exploitation that fuels it eventually reaching a point of explosion, and the inability to expand because the entire globe is now encompassed by it. It is also impossible in the long run because 100 percent recycling and conservation is a physical impossibility.

Laws of thermodynamics versus limitless expansion

An interesting paper just published in the Real-World Economics Review, “How entropy drives us towards degrowth,” lays this out in six succinct pages. Written by Crelis Rammelt, a professor of environmental geography and international development studies at the University of Amsterdam, the author concludes that global capitalism “annihilates its own habitat” and “devours the equivalent of an entire Mount Everest’s worth of resources every 20 months.” 

That’s a whole lot of resources! The number of months will be fewer in the future because, structurally, capitalism must expand. This is the dynamic of the system that is often obscured. The rigors of competition force all capitalists to reduce costs and find new customers to successfully compete; failure to do so means going out of business. With all competitors forced into this endless treadmill, the entire system is dependent on expansion and the creation of new markets. Now that capitalism has conquered virtually every space on Earth, there can be no more geographic expansion. Thus the pressure of competition only becomes more acute, as does the need to extract more natural resources, which will inevitably be more difficult and expensive to obtain as easily reached materials are exhausted.

Thus, Dr. Rammelt wrote, the search for short-term fixes intensifies. “This system demands continued accumulation of capital and falters when hindered in this process,” he wrote. “The typical response to the ecological crisis is therefore not to restrict economic growth but to pin all hope on efficiency, circularity, dematerialization, decarbonization, and other profit-driven green innovations within capitalism. In this exposition, I argue that this hope is false because entropy always looms. Entropy serves as a physical measure of disorder, and we observe its inexorable increase all around us: everything decays, rots, disintegrates, and falls into disorder.”

Photosynthesis in action (photo by Rcaravit)

Energy changes form but does not disappear, he notes, but the second law of thermodynamics states that thermal energy (heat) flows from the hotter body or location to the cooler. In parallel with this law of entropy, energy flows from a place of high concentration (such as a battery) to a place of low concentration (such as a toy), thus resulting in a loss of energy for the battery. Entropy also shows itself in the degradation of everyday objects: food spoilage, metal erosion and clothing wear and tear. Something external has to provide supplemental energy to keep a system from complete degradation. For the Earth’s natural system, that external is the Sun. “The biosphere taps into solar power to perform ‘useful work,’ namely concentrating dispersed energy and matter into” new forms. “A healthy and well-functioning biosphere thus stands as the only force on Earth capable of counterbalancing the rise in entropy.”

Nature, however, cannot regenerate without limits. Although new food sources are created, sufficient for a natural biosphere and the life that inhabits it, “the metabolism of the destructive beast called capitalism expands too fast for the biosphere to keep up.” The metabolism of capitalism outstrips the ability of nature to regenerate itself. (Humanity is using nature 1.7 times faster than Earth’s biocapacity can regenerate). “Ecosystems have evolved over millions of years to optimize energy consumption in ecological food webs and to delay and reduce entropy through biodiversity,” Dr. Rammelt wrote. “Tragically, growth-oriented economies do the exact opposite by pushing against this natural order and increasing entropy at a devastating rate.”

It’s a physical world no matter what we wish

Substituting one-crop monocultures for more varied agriculture, irrigation, more intensive use of fertilizers and finally genetically engineering crops are among the ways that capitalism attempts to evade limits. But soil degradation, the creation of dust bowls, chopping down forests and pollution persist and become more dangerous. “Capitalism, in its pursuit of relentless growth, damages the very biosphere it relies on to mitigate its entropy-amplifying activities.” It is not a physical possibility to overcome environmental stresses by becoming more efficient or devising more ways to recycle more. Nature has its limits, Dr. Rammelt writes:

“Can we not combat entropy through frugal and circular production? The typical response to the ecological crisis isn’t to slow down growth but to rely on dematerialization and circularity. However, ‘green capitalism’ cannot maintain itself, let alone grow, by merely reusing its own waste and byproducts. Just as monkeys require fresh bananas from the forest and can’t survive on their own feces, production systems require new input of low-entropy matter and energy to function. The same goes for a forest that depends on solar energy from space and can’t survive solely on falling leaves. Shifting to biomass as a raw material for production also won’t save green growth as it will intensify pressure on land, water, and soil.”

At first glance, the fact that the global economy recovers less than 10 percent of waste materials and retains only 28 percent of global primary energy consumption after conversion would seem to indicate a vast potential for improvements in the efficiency of resource usage. But a closed system that loses nothing is simply impossible, because not everything is recyclable and because transmission losses are inevitable:

“[E]ven though we are far from achieving 100% circularity and efficiency, the laws of nature will always obstruct us from attaining such a goal. To counteract all unavoidable losses and inefficiencies, we require a constant influx of fresh, low-entropy matter and energy. This requirement holds true for circular economies and other green growth models as well. The encouraging news is that the biosphere can convert certain types and quantities of waste back into raw materials. However, we should not anticipate the biosphere to sustain this service at the same accelerating pace at which our economies increase entropy.”

Socialism or Barbarism? (Image by Michael Coghlan via Flickr)

That humanity can dominate nature “is an illusion.” The laws of thermodynamics remain in place. “Consequently, a growth-centered capitalist economy finds itself trapped in futile attempts to completely decouple itself from nature — aiming for a 100% circular, service-oriented and zero-waste existence. This obsession stems from an incapacity to imagine an economy that does not grow, where both the quantity and quality of its metabolism remain within secure ecological and planetary boundaries.”

Therefore, the conclusion is inescapable that an economy that requires continual growth must reach a physical limit; reaching such a limit is nothing less than global environmental collapse. Dr. Rammelt advocates a “radically different pathway”: degrowth. He defines degrowth as “a socio-economic transformation aimed at reducing and redistributing material and energy flows, with the goal of respecting planetary boundaries and promoting social justice.” Although he does not give a name to a post-capitalist system other than one of “degrowth,” such a sustainable system would have to be one that not only stays within the planet’s physical limits but provides enough for everybody. The material basis for everybody to have enough to eat and a place to live comfortably already exists; such a distribution is impossible under capitalism, where, again, production is performed for a small number of people to accumulate massive amounts of money with little left for everybody else.

Once again, Rosa Luxemburg’s thesis that either socialism or barbarism is our future stares us in the face.

Capitalism attacks Argentine workers and you may be next

As always when a representative of the right wing tells you he or she is campaigning to bring “freedom,” be afraid. Very afraid. For “freedom” in these cases means freedom for the richest financiers and industrialists to do whatever they want.

For them, “Freedom” is for capital, not for human beings without capital to invest. Today’s exhibit is the offensive against working people that is taking place in Argentina, where the new extreme right president, Javier Milei, is determined to see how far capitalist ideology can be pushed. So far, Argentines have pushed back but Milei, cheered on by domestic and international big business leaders, is nothing if not determined to ram through his austerity packages. And he has shown no inclination to allow mere democracy to stand in his way.

Nonetheless, there is no surprise here. President Milei ran on a program of extreme austerity, brandishing a chainsaw at his election rallies. Unfortunately, enough Argentines bought his siren songs, or were desperate enough to try anything given the country’s punishing inflation, to elect him, ending a one-term period in executive office by the ordinarily dominant Peronists. Alas, doing something new for the sake of doing something new, when it is aimed at you, rarely works. And here there is actually nothing new. President Milei simply promoted standard hard right ideology, albeit promoting it with unusual vigor. Snake oil is snake oil, as Argentine working people are already finding out. 


People filled the streets of Buenos Aires and Argentina’s biggest cities to demand “memory, truth and justice” for the victims of state violence (photo by Izquierda Diario)

Still waiting for benefits to trickle down, aren’t you? For more than 40 years, the same tired propaganda has been peddled, and has been implemented in various countries, starting with Augusto Pinochet’s murderous military dictatorship in 1973, in Chile, and gaining speed with the election of Margaret Thatcher in Britain in 1979 and Ronald Reagan in the United States in 1980. “Neoliberalism” is the term that the world came to adopt for this vicious austerity. (The term references how the world outside of North America uses the word “liberal” to mean minimal government regulation to enable decisions to be made by market forces; this is termed “libertarianism” in North America. Capitalist “markets,” however, are nothing more than the aggregate interests of the biggest financiers and industrialists and are not the neutral arbiters loftily sitting in clouds even-handedly dispensing justice as conservative propagandists would have us believe.)

The ideology that undergirds austerity programs has a long history and has to be incessantly promoted, all the more so because traditional “laissez-faire” ideas had become discredited during the Great Depression, leading to post-World War II Keynesianism becoming entrenched. The need for capitalists to give concessions to save their system due to the mass revolts of the 1930s and the failure of fascism as a “solution” to capitalists’ difficulties in maintaining profits helped the temporary acceptance of (or resignation to) Keynesianism. Perhaps the most influential ideologue of laissez-faire/neoliberal economics is Friedrich Hayek, who went so far as to assert 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. His most prominent student, Milton Friedman, would supply the Pinochet dictatorship with its economic program, the first modern case of “shock therapy” being imposed with maximum force because there was no other way it could be implemented.

What Thatcherism had in store for Britons was demonstrated by her crushing of the miners’ strike and Reaganism in turn showed its teeth by crushing the air traffic controllers’ strike. Punishing austerity was to follow on both sides of the Atlantic as declining profits and increasingly stiffer and more globalized competition required pushing down wages and working conditions, reducing or eliminating regulations and outsourcing production to wherever labor was cheaper and regulations fewer. Making all this work required dropping barriers to trade, thus bringing on the age of so-called “free trade” agreements that put regulation outside political or democratic control, and cracking open countries outside the capitalist core of the Global North to expose those economies to plunder with legal defenses stripped away by unaccountable multinational organizations. Debt is used to enforce these prerogatives, with multinational lending organizations such as the World Bank and International Monetary Fund imposing draconian conditions on loans that are used to pay off earlier loans, sending Global South countries into deeper debt. The European Union is another neoliberal offensive, a supranational organization run by and for bankers that overrules democratically elected governments at the national level.

The Milei offensive in not new to Argentina

Argentina, although among the biggest countries outside the capitalist core, has suffered multiple rounds of neoliberal austerity. President Milei’s draconian attempts to maximize corporate profits are not new.

The fascistic military dictatorship of 1976 to 1983 laid waste to the Argentine economy while unleashing horrific human rights abuses. Upon seizing power, the military handed over economic policy to a well-connected industrialist, José Alfredo Martínez de Hoz, who ruthlessly implemented a severe neoliberal program of shock therapy, backed by a savage campaign of torture, “disappearances” and killings waged by the military and two allied fascist groups. The CGT union federation was abolished, strikes outlawed, prices raised, wages tightly controlled and social programs cut. As a result, real wages fell by 50 percent within a year. Because of the collapse of internal consumption caused by this austerity, ten percent of Argentina’s workforce was laid off in 1976 alone. For the last five years of the military junta, 1978 to 1983, Argentina’s foreign debt increased to US$43 billion from $8 billion, while the share of wages in national income fell to 22 percent from 43 percent.

Upon the return of formal democracy, the debt did not go away. A civilian president, Carlos Menem, imposed an austerity program in the early 1990s in conjunction with selling off state enterprises at below-market prices. This fire sale yielded $23 billion, but the proceeds went to pay foreign debt mostly accumulated by the military dictatorship — after completing these sales, Argentina’s foreign debt had actually grown. The newly privatized companies then imposed massive layoffs and raised consumer prices. By 1997, about 85 percent of Argentines were unable to meet their basic needs with their income. In contrast, banks underwriting Argentine government bonds earned an estimated $1 billion in fees between 1991 and 2001, profiting from public debt. As one example, an investment bank that arranged a restructuring of Argentina’s debt, under which a brief pause in the payment schedule was granted in exchange for higher interest payments, increasing Argentina’s debt, racked up a fee of $100 million.

Argentines participating in the March 24, 2024, truth and justice demonstration in Buenos Aires draw parallels between the military dictatorship and Palestine (photo by 1985Idea)

It all finally imploded at the end of 2001, when the government froze bank accounts and the country experienced so much unrest that it had five presidents in two weeks. The last of these presidents, Néstor Kirchner, suspended debt payments. Had Argentina resumed scheduled payments in 2005, interest payment alone on the debt would have consumed 35 percent of total government spending. Kirchner announced that Argentina intended to pay only 25 percent of what was owed and any group that refused negotiations would get nothing; in the end, Argentina paid 30 percent to bondholders who agreed to talk.

Almost all of Argentina’s debtors accepted the 30 percent, seeing 30 percent as better than nothing. Many of Argentina’s creditors were not the financial institutions that originally made the loans; much of the debt had been sold to speculators. There were two notable holdouts, however — the hedge funds Elliott Capital Management and Aurelius Capital Management. These two speculators demanded full payment of the face value of the debt that they bought for pennies on the dollar. How to extract money out of a country where living conditions had already sunk to perilous lows? The head of Elliott Capital and its NML Capital affiliate impounded an Argentine Navy ship docked in Ghana, tracking the ship and waiting for it to reach the country that would be most favorable to its tactic of seizing an asset. This was no aberration; that speculator, Paul Singer, has a documented history of buying debt owed by poor Global South countries for pennies on the dollar and demanding to be paid full face value, no matter how dire that country’s condition.

The speculators on Argentine debt could use the tactic of impounding ships because a U.S. federal judge had issued a series of rulings declaring that Argentina must pay the full amount to the holdouts. Those rulings were not isolated instances of an out-of-control judge; the U.S. Supreme Court would later issue two rulings that fully backed the speculators. The Foreign Sovereign Immunities Act of 1976 is supposed to bar lawsuits in U.S. courts against non-U.S. governments, but a 7-1 bipartisan majority of the Supreme Court decided that the law is malleable when not convenient. The Argentine bonds had been sold with a provision that New York law would be used to settle disputes related to them, which gave U.S. courts the excuse needed to extend U.S. law to Argentina. In essence, the high court ruled that financiers are more sovereign than a national government.

Standing up to finance capital

Nonetheless, the administrations of Néstor Kirchner and Cristina Fernández refused to kneel. Their left-wing populism has been overstated — they left capitalist relations untouched and at best merely tolerated the movement of recovered factories — but they did consistently put the interests of Argentine working people ahead of international financiers. That came to an end when a new right-wing president, Mauricio Macri, took office and fulfilled his campaign promises to put an end to the country’s sovereignty. As a reward, Buenos Aires was again allowed to borrow on international financial markets — so that it can borrow money for the sole purpose of paying billions of dollars to speculators. The Macri administration committed itself to paying $6.4 billion to the holdouts, which could only be paid off by more borrowing.

President Macri served only one term, with the Peronists regaining office. Now a hard right president is again in power. President Milei wasted no time implementing a program that is a dream for Argentine capitalists; his chainsaw is not an empty metaphor. Acting immediately — after all, “shock therapy” is also not just a metaphor — President Milei devalued the peso by 50 percent, reduced transportation and utility subsidies, lifted price controls and dissolved half of the government’s ministries. He also announced a new “protocol” to limit public protests and the creation of a “registry” under which activist organizations would be sent bills for the expenses of the state repressing their public protests. The purported purpose of this protocol is, you guessed it, to achieve “peace and order.”

This program, naturally, has drawn rapturous praise from business interests. Elon Musk, he of the mass firings, poor pay and notorious hostility to unions and regulations that protect employees, has endorsed President Milei, and “top Argentine CEOs” “heap praise” on him, Bloomberg reports. The president has in turn lavished praise on Margaret Thatcher, calling her “brilliant.” 

Entre Rios province, Argentina (photo by Felipe Gonzalez)

Those who are at the receiving end of the Milei administration’s attacks, and those who represent them, have a decidedly different take. The General Secretary of the International Trade Union Confederation (ITUC), Luc Triangle, said, “The IMF is celebrating the budget surplus in Argentina, but it’s indefensible to ignore the human cost of this economic shock therapy. Pensions have been slashed, thousands of public sector workers fired, public services are on the verge of collapse, unemployment is growing and food poverty spreading. These kinds of misguided, far-right economic measures deepen inequality and erode democratic foundations. It is no surprise that Milei also wants to bypass Congress and repress civil liberties — this is the anti-democratic ideology at the centre of his regime.”

What is it that the International Monetary Fund is celebrating? Inflation that had reached 160 percent in November, on the eve of President Milei’s inauguration, has steadily increased, reaching almost 290 percent in March. The Organisation for Economic Co-operation and Development (OECD), the club of advanced capitalist countries and large Global South countries, predicts that Argentina’s inflation will be 251 percent for 2024 and that its economy will shrink 3.3 percent for 2024, easily the worst performance among G20 economies.

Democracy? What democracy?

The decrees mentioned above were only the beginning. Days into office, President Milei in December 2023 issued an 83-page “Necessity and Urgency Decree” intended to eliminate hundreds of regulations, erode labor rights and open the door to mass privatizations of state-owned enterprises. Both houses of Argentina’s National Congress must vote in their majorities to overturn the decrees, or they go into effect. The Senate voted it down but has not yet faced a vote in the Chamber of Deputies. In the interim, a court, hearing a challenge by the CGT trade union federation, voided some of the decree, suspending it until the Congress fully considers it. But there was still more to come.

Following up on his decree, President Milei a week later introduced an omnibus bill with the Orwellian name of “Foundations and Starting Points for the Freedom of the Argentine People,” a 351-page document that contains 664 articles. If passed, this bill would declare an “economic emergency” and delegate more than 1,000 powers from the legislative to the executive branch until December 31, 2025. This would enable the president to bypass Congress. Noting that President Milei said “the state is an enemy,” Professor Tom McDowell, writing in CounterPunch, summarized this offensive:

“Grounded in the same logic as neoliberalism’s conventional demand for freedom from the state, democratic institutions increasingly appear as impediments to the logic of the marketplace. … The anti-parliamentarism at the core of the neoliberal theoretical outlook has increasingly transformed into a populist program that mobilizes a general dissatisfaction with politicians against democratic institutions as such. Neoliberal politicians, such as Milei, use this reasoning to manufacture the conditions for the ongoing use of emergency powers and the concentration of authority in the executive branch.”

The Puerto Madero district of Buenos Aires. (Photo by Juan Ignacio Iglesias)

Following a one-day general strike in which 1.5 million people took to the streets, the omnibus bill was voted down in Congress. The fight was still not over, because the omnibus bill was trimmed and sent back to Congress, with the new version passed by the Chamber of Deputies on April 30. The Senate is debating the bill with a May 25 deadline to act; although the pro-Milei parties do not have a majority in the Senate, one of the left-wing parties that voted against it in the Chamber, Frente de Izquierda, does not have a Senate seat, leaving the outcome uncertain, according to the Buenos Aires Herald. The revised bill would still privatize nine state-owned enterprises, down from 41, implement “reforms” to pensions and labor law, make “maximizing profit obtained from exploiting natural resources” state policy and cut taxes for foreign companies.

The need to step up the fightback

Despite the militant action that stopped the December decree, opponents of the Milei administration on the Left decry a lack of resolve by mainstream labor organizations. Samuel Karlin, writing for Left Voice, writes that union bureaucracies and center-left parties are containing the ability of the working class to fight back. He writes:

“Months later the law is once again advancing due in large part to the refusal of the CGT — the country’s largest federation of trade unions — to mobilize workers against the attacks. The CGT — in addition to not holding assemblies or promoting the organization of the working class and a plan of struggle until the law falls — negotiates behind closed doors with the government, preventing the workers’ strength from being expressed against the adjustment and the law in the streets and workplaces. The CGT is more afraid of the mobilized workers than of the Milei government itself. Meanwhile, the centrist and center-left Peronists who lead the union bureaucracies and social movements have sought to negotiate the terms of the attacks rather than wage a fight against it.”

Nonetheless, militant pushback is happening, demonstrated by 800,000 students, educators and allies protesting cuts to public universities, including reductions in teacher pay and the closures of some schools. Mr. Karlin notes, “Milei is advancing U.S. imperialist penetration in Latin America and developing the Far Right movement internationally. As Israel becomes increasingly isolated due to its genocide of Palestinians, Milei has become one of the Zionist state’s fiercest allies. Milei wants to use Argentina as a laboratory for his far-right reaction, instead we should use it as a laboratory for fighting back the Far Right.”

Another dangerous initiative of the Milei administration is its denial of the massive crimes committed by the fascistic military regime of 1976 to 1983. The total of those murdered, “disappeared,” arrested, tortured and/or forced into exile likely is in the hundreds of thousands, with an estimated 30,000 killed. The administration’s ministers, including the president himself, either deny the toll the military regime took or attempt to justify it. Thus an annual demonstration in March against the military dictatorship drew large crowds, who had an increased sense of urgency.

What has the new government achieved? Argentina’s poverty rate has risen to 57 percent, the highest rate in two decades. The president openly celebrated firing 50,000 state workers, with plans to fire another 70,000, and the removal of 200,000 from social-benefit programs. In addition, reductions to pensions were the largest in 30 years. The previous hard-right president, Mauricio Macri, took out a $57 billion loan from the International Monetary Fund and the cuts demanded by the IMF in exchange led to austerity, a downward cycle that threatens to accelerate.

Regardless of what country we live in, we all have a stake in the Argentine people’s success in fighting off the Milei austerity package. Industrialists and financiers, and the public office holders who love them, are undoubtedly watching closely the events in Argentina. If a country with one of the most militant working classes can have extreme austerity imposed on them, similar offensives will soon be on the way elsewhere. Capitalists around the world understand well their common class interest. The working people of the world, the overwhelming majority of Earth’s population on whose backs the wealth of those elites is built, need to understand their common interest.

The sad spectacle of lesser-evil elections

One of the two major-party candidates for the presidency of the United States has allowed an decades-long ethnic cleansing to morph into a genocide, a horror that could be stopped with one phone call; has escalated the drilling of oil and gas despite the existential threat of global warming; forced railroad workers to swallow a bad contract by breaking their strike; and spent his Senate career as an errand boy for banks. And that’s the lesser evil!

Joe Biden really is the lesser evil in this dismal race for the White House, and that such an office holder is easily not the worst candidate is surely sufficient to illustrate the decline of the world’s still extraordinarily dangerous superpower. Out of more than 300 million people, this is the best the country can do? Given the quite understandable reluctance (to put it mildly) for the types of folks who are reading these words to contemplate voting either for President Biden or Donald Trump, what do we do when the lesser evil is so evil that he has the sobriquet “Genocide” attached to his name?

At the top of the list is recognizing the limitations of voting and concentrating on organizing. There is no vote that is going to fix a hopelessly archaic voting system, a system that simply reflects the state of U.S. politics. The Democratic Party is not going to save us, no matter how fervently liberals wish to believe. Even if President Biden could somehow be magically replaced by a true progressive dedicated to putting an end to corporate control of U.S. society and all the many social, political and environmental ills that flow from that, not much would change. One person can’t be a savior and if one person could at least do something tangible to ameliorate our conditions, the Democratic Party apparatus itself would stop it. Remember the 2016 campaign — the mere presence of Bernie Sanders and his social democratic prescriptions that posed no threat to capitalism as it is practiced in the United States sent Democratic leaders into fits of frothing panic as they did everything they could to tip the scales in favor of their corporate candidate despite that candidate’s unpopularity. That candidate, Hillary Clinton, Wall Street’s choice, even intimated that she might prefer Trump in the White House than Senator Sanders.

But simply waiving off the Democrats as a party of capitalists (although true) doesn’t explain anything. We need to be more concrete. Beyond the obvious observation (again, quite true) that money talks and those with a lot of money get to do the talking, why is the Biden campaign — and Democratic Party political office candidates in general — unable to conceive of any campaign strategy other than chasing dissident Republicans and those centrists not already committed to the party? Why are even the modest goals of their own liberal base too “radical” for them? Three factors immediately come to mind: 1) A fear of the party’s progressive wing and even more those to the left of the party; 2) a lack of imagination due to being imprisoned by ideology; and 3) the internal logic of a winner-take-all political system designed by 18th century aristocrats to keep themselves in power.

We’ve been here before: Protesting the Democratic National Convention in 2012 (photo by Debra Sweet)

Let’s take them in turn, starting with the first item. Is there any party on Earth that is more dedicated to “standing up to its base”? Is there any other party that even contemplates doing that? The Republican Party, to seek the nearest counter-example, panders to its base at all times and has even become frightened of its own base, thus the pathetic groveling at the feet of Trump that has become a standard operating procedure. Independent thinking? Even setting aside that independent thinking is verboten in conservative circles, doing so would draw the wrath of Trump or his followers. If you don’t believe that lockstep “thinking” is the default in right-wing milieus, ask yourself why talk radio skews so heavily to the hard right. Talk radio is about an authority who tells you what to think; recall the sad spectacle of Rush Limbaugh followers who called themselves “ditto heads” because agreeing with Limbaugh’s ignorant bloviating was the only permissible response by his reality-challenged fans. 

And so it is now, with an ignorant barstool ranter, a total narcissist who sees other human beings as only tools for his service, a charlatan whose goal is to be a fascist dictator (and doesn’t bother to hide that), whose every mangled word, no matter how incoherent or free of reality, is received as a message from Olympus by his fans. The steady stream of reports that make their way into the news media noting that many Republican members of Congress have a diametrically opposed opinion of the Orange One-Man Crime Wave than the unquestioning fealty they express in public demonstrate merely that, although showering corporate benefactors with largesse is the only conceivable outcome of political activity in their limited minds, lockstep echoing of whatever line the leader decrees and making sure to never say anything that would anger or confuse the base is what is expected.

Money is what matters, not voters

In contrast, Democrats have no trouble at all not simply “challenging” their base but regularly launching outright attacks on their base. Both of the first two items above come into play here. In large part Democratic officials’ disdain for their voters derives from their need to raise gigantic sums of money to run campaigns, money at such a scale that it can only be raised by begging the wealthiest capitalists and the biggest corporations. Passing legislation that the party’s base would actually like to see, however tepid and failing to get at root causes, would anger their corporate benefactors. That much is obvious and as the piles of money poured into congressional and presidential campaigns reaches absurd heights, Democratic needs to placate their donors’ wishes only grows more acute.

That money talks, however, isn’t the full picture. The surrender of Democrats to neoliberal austerity, corporate control of the levers of political power and the endless erosion of working peoples’ ability to defend themselves and our working conditions, can’t be grasped without understanding the intellectual dead end of liberalism. (To be fair, this is hardly unique to U.S. Democrats; Canadian Liberals, British Labourites and European social democrats all travel the same road.) In parallel with European social democracy, North American liberalism is trapped by a fervent desire to stabilize an unstable capitalist system. The political and intellectual leaders of liberalism believe they can discover the magic reforms that will make it all work again. They do have criticisms, even if they are afraid of saying them too loud, but are hamstrung by their belief in the capitalist system, which means, today, a belief in neoliberalism and austerity, no matter what nice speeches they may make. 

Those who are conflicted between their belief in something and their acknowledgment that the something needs reform, and are unable to articulate a reform, won’t and can’t stand for anything concrete, and ultimately will capitulate. When that something can’t be fundamentally changed through reforms, what reforms are made are ultimately taken back, and society’s dominant ideas are of those who can promote the hardest line thanks to the power their wealth gives them, it is no surprise that the so-called reformers are unable to articulate any alternative. With no clear ideas to fall back on, they meekly bleat “me, too” when the world’s industrialists and financiers, acting through their corporations, think tanks and the “market,” pronounce their verdict on what is to be done. As always, the capitalist “market” is nothing more than the aggregate interests of the biggest industrialists and financiers.

Cherry Blossoms in Washington during March (photo by Sarah H.)

There is nowhere for Democrats to go other than in circles, hoping fruitlessly that some tepid reform that does nothing other than tweak a system that works against the overwhelming majority will be enough to induce another round of votes for them while not angering their corporate benefactors. The party has descended from the “graveyard of social movements” to more actively opposing movements rather than merely coopting them. Lesser evilism tends to head in a single direction. And what of the third factor from above, the internal logic of a winner-take-all political system? Simply put, a system as closed as that of the U.S. has no room for more than two parties.

The reason for such a constricted choice in the U.S. does not lie in its constitution (which makes no mention of parties), nor even in the iron-gripped dominance of its large corporations (although the Republican/Democratic split tends to replicate the industrialist/financier rivalry among capitalists). Unlike parliamentary systems that use either proportional representation to better reflect the spectrum of political opinion or use multiple-seat districts where more than one party can be seated, a legislature based on districts each with one representative is a closed system. (This includes the U.S. Senate, which, because of its staggered terms, is effectively a single-seat system in which the district is an entire state.) That these districts are heavily gerrymandered does exacerbate this closed system, but is more a symptom than a cause. When there are two entrenched parties contesting for a single seat, there is no space for a third party to emerge. The two parties are necessarily unwieldy coalitions; they must be so because they will have to contain room for people and ideas across long portions of the political spectrum. (That does not mean that all factions’ desires are incorporated into the party’s positions or are even heard).

Heads, corporate power wins; tails, you lose

Voting for a party or an individual becomes a sterile exercise in ensuring the other side doesn’t win. From the point of view of the candidates and parties, the safest strategy is one of peeling away voters from the only other viable candidate, thereby encouraging platforms to be close to that of the other viable candidate, promoting a tendency to lessen differences between the two dominant parties. If the more extreme party moves further right, this tendency means that the relatively more moderate party will also move right, keeping the gap as small as reasonably possible.

With little to distinguish the two parties, the importance of personality becomes more important, further blurring political ideas, and yet third choices are excluded because of the factors that continue to compel a vote for one of the two major-party candidates. In turn, such a system sends people to representative bodies on the basis of their personalities, encouraging those personalities to grandstand and act in an egocentric manner once they are seated. Yet even with the grandstanding, the unavoidable need to beg for dollars to be a viable candidate means keeping corporate benefactors happy. All the more do party leaders do what they can to see to it that only those already disposed to fulfill corporate wish lists get to be candidates. And in an era where wealthy industrialists and financiers are more frequently running for office themselves rather than backing someone to do their bidding, they naturally seek office through one of the two dominant parties, thereby transmitting corporate ideology back into them, while also bolstering them by linking their personal “credibility” to the parties.

The two parties do compete fiercely to win elections — they represent different groupings within the capitalist class who have a great deal of money at stake. This is a closed competition, however: They act as a cartel to keep corporate money rolling in and other parties out. Although real choice is blocked, the illusion of competition is maintained and there is enough room to allow safety valves to work when needed, such as the removal from office of an unpopular office-holder. All this makes for a remarkably stable system: One U.S. government has fallen in 230 years and on that one occasion, Richard Nixon’s vice president was seamlessly sworn in as president.

So is there any point to voting? That ultimately is a personal decision. But why not vote? It is what else we do that matters. If you spend one hour on one day a year voting and spend the rest of your year organizing, agitating and doing what you can to bring about a better world, then you have allocated your time well. That is true whether you vote for socialist or Green candidates, or whether you vote for Democrats as the lesser evil out of strategic reasons because getting a Democrat in office provides more maneuvering room for activist work than when a Republican is in office. We should be intellectually honest enough to recognize this; acknowledging that a Republican administration is worse than a Democratic one while having no illusions about Democrats should be no cause for condemnation as long as we remember that a lesser evil is still evil and social movements in the street, linking causes and aligning with people who don’t look like us or live where we do, is the only route to a better world. (I write this as someone who votes for socialists and Greens but I decline to condemn or mock others who vote otherwise for strategic reasons.)

Bring into being a better world — whether we choose to call that better world socialism or economic democracy — means putting an end to the capitalist economic system before capitalism puts an end to Earth’s ability to remain a fully habitable biosphere and completes the job of immiserating the world’s working people, the overwhelming majority of humanity. That will never be done in a voting booth. History could not be clearer on this. The hard work of organizing and building movements is the only thing that has ever made the world better and is the only thing that ever will make the world better. It will be a happy day when we can vote as we wish by voting for what we want. For now, voting for a greater evil or a somewhat lesser evil is what we are presented with, and although not voting for a lesser evil is understandable, sometimes a lesser evil means a difference between life and death; the women who will die because they can’t get an abortion and their families would surely see a difference. We ought to be able to tell the difference between a bourgeois formal democracy and the threat of outright fascism. 

Even with possessing that basic knowledge, better we oppose such a miserable choice with whatever means we have at our disposal rather than offering “more revolutionary than thou” platitudes.

Why should we give all our money to landlords?

Who decided we should give all our money to landlords? Did you vote for that? I didn’t. You didn’t, either. And if you have thoughts of leaving renting behind to buy, the costs of mortgages are, not surprisingly, rising dramatically as well.

As far as I know, no landlord has been recorded as holding a literal gun to the head of tenants to sign a lease. But then there is no need for them to do so, as “market forces” do the work for them. At bottom, the problem is that housing is a capitalist market commodity. As long as housing remains a commodity, housing costs will continue to become ever more unaffordable. To put this in other words: As long as housing is not a human right, but instead something that has to be competed for and owned by a small number of people, the holders of the good (housing) will take advantage and jack up prices as high as possible.

This is simply “market forces” at work. If there isn’t enough housing, and especially insufficient lower-priced housing, the owners of that commodity in short supply will raise prices. Several decades of allowing the “market” to handle the supply has led to the result of renters struggling with high rents and facing the impossibility of obtaining an affordable mortgage. Despite what judges have ruled, rents do not rise without human intervention. The “market” in housing are landlords and developers, and their interest is the maximum amount possible of profit, regardless of cost to everybody else. The magic of the market, indeed. 

A sign at Occupy Boston (photo by Tim Pierce)

One new aspect of housing markets, at least in North America, is the entrance of financial speculators, a trend that appears to be gathering momentum. In both the United States and Canada, “investors” are buying up housing at an extraordinary pace, doing so to extract large short-term profits through raising rents and swift evictions. The gains of speculators are your losses — less housing is available and not only does the rent charged for these homes bought for speculation go up faster than they would have but fewer homes are available, thereby further driving up rents. Once again, Wall Street and Bay Street find a way to profit off a crisis. 

Increasingly unaffordable rents as the result of decades of housing costs rising much faster than inflation or wages over decades is not limited to North America, of course. Capitalism is a global economic system, and it is therefore no surprise that the cost of housing is similarly rising around the world, perhaps most acutely in Britain but certainly not only there. Nonetheless, financial speculation has added an accelerant to North American unaffordability.

As always, Wall Street profits off everybody else’s misfortune

In the United States, speculators are gobbling up multifamily apartment buildings in places such as New York City and the San Francisco Bay Area as well as single-family homes in the Southeast, the Midwest and elsewhere. The latter seems to be drawing most of the speculative money. Investors bought one-quarter of all U.S. single-family houses that sold in 2021 with five states — Arizona, California, Georgia, Nevada and Texas — seeing nearly one-third of sales made by investors. A lack of regulation is fueling this trend. And many a political officeholder wishes to keep it that way. In Georgia, for example, a bill introduced by Republican state senators would have made it illegal for local governments to enact any restrictions against predatory behavior. Strong pushback caused the bill to die in committee but it could be resurrected. Rising rents, mass speculator buying and faster evictions are intertwined problems in places such as Atlanta, to which we will return.

By 2030, by one estimate, 40 percent of U.S. single-family rental homes may be owned by institutions. Predatory investors did not appear out of the blue, but were encouraged by federal government policy, a development not independent of the 2008 financial collapse that led to massive foreclosures and evictions. Local Initiatives Support Corporation, an advocacy group that calls itself a “bridge” between government, foundations and for-profit companies on the one hand and residents and local institutions on the other, summarizes the factors leading to the current speculation-driven market. Julia Duranti-Martínez writes:

“While predatory investors aggressively capitalized on tenant and small landlord distress to increase their market share through the pandemic, their entry into the housing market was facilitated by financial and regulatory reforms from the 1980’s-90’s, and dramatically increased in the wake of the 2008 foreclosure crisis, when investors scooped up distressed homes in hard-hit communities through bulk sales. These acquisitions are part of a long history of displacement and wealth extraction targeting low-income and BIPOC communities—particularly Black and Latinx households, who suffered higher rates of foreclosure than white homeowners and lost nearly $400 billion in collective wealth during the Great Recession—who now find themselves excluded from homeownership and paying more in rent to corporate landlords for worse quality housing.”

Artwork by Jesus Solana from Madrid

Although they would of course invert the moral signposts, investors themselves acknowledge that, for them, single-family homes are an “opportunity.” One institutional investor, based in Alabama, gleefully noted that scooping up single-family homes as rental properties “offers the potential for higher returns” and have become a target of institutional investors whereas these sorts of homes, prior to the 2008 financial collapse, were a “mom-and-pop asset class.” Computerization is also driving this: “[S]ophisticated real estate investors on Wall Street can partially or fully automate the process of appraising, acquiring, renovating, leasing, operating, and maintaining single-family rentals.” This report also, with a straight face, asserts that Wall Street ownership leads to “greater tenant satisfaction.” It surely does not, as we will presently see.

Seeking to unload foreclosed properties, the government-sponsored mortgage guarantors Fannie Mae and Freddie Mac began a program to encourage institutional investors to purchase these properties. This was done in 2012. Reuters quoted the then acting director of the Federal Housing Finance Agency, Edward DeMarco, as saying, “This is an important step toward increasing private investment in foreclosed properties to maximize value and stabilize communities.” Maximizing value for Wall Street it certainly has done. Reuters at the time reported that the Obama administration sought to “shore up the housing market.” Given the proclivities of the Obama administration to see neoliberal austerity and “market” solutions as the answer to all problems while giving a thin moderating veneer to otherwise right-wing concepts, it should come as no surprise that leaving renters and distressed mortgage holders to the tender mercies of Wall Street was cooked up. Par for the course for the intellectual dead end of liberalism.

U.S. government tells speculators to get to work and they do

There appears to be no letup. In March 2023, 27 percent of single-family houses sold in the U.S. were bought by investors, and that figure was virtually unchanged at 26 percent for June 2023, the latest figures I can find. The number of non-institutional purchases of single-family houses, meanwhile, declined by half from July 2020 to January 2023, according to CoreLogic data. Years of such massive purchasing by institutional investors adds up: Urban Institute researchers found that large institutional investors (those owning at least 100 single-family houses) collectively owned 574,000 homes as of June 2022, and most of these by investors owning at least 1,000 single-family rentals.

This trend is occurring in metropolitan areas around the United States, but appears concentrated in the Southeast. How does this play out? One study, published by the Housing Crisis Research Collaborative, found that private-equity and other institutional investors seek not only profits but capital gains, which are notoriously taxed at lower rates than income. “The focus on capital gains is exemplified by purchases of distressed properties in low income, historically nonwhite neighborhoods that have suffered from disinvestment, but where gentrification or real estate cycle dynamics predict medium term price increases,” the Collaborative report states. The federal Opportunity Zone program, instituted as part of the 2017 Tax Cut and Jobs Act and described as “an uncapped, loosely targeted” policy that “provides capital gains tax shelters for investors that invest in low-income communities,” has seen “nearly all” of the funds generated by it go to real estate investment rather than business investment. 

Focusing their research on Atlanta, Miami and Tampa, the Collaborative researchers found that “large corporate single family rental and rent-to-own investors purchase in highly segregated, predominantly Black and non-White Hispanic areas, while avoiding high poverty neighborhoods and areas with low levels of owner-occupied housing stock.” This included areas “hit hard by Covid-19.” As a result: 

“Large corporate landlords are associated with high rates of housing instability due to frequent rental price increases and aggressive eviction practices. These firms have higher eviction rates than small landlords. Investor purchases of multifamily have been found to cause spikes in evictions-led displacement, and to accelerate displacement of Black residents at the neighborhood level.” [internal citations omitted]

This study found that large institutional owners of single-family rentals “have an established record of high hidden fees, aggressive rent increases, high eviction rates, and poor maintenance.”

Atlanta skyline (photo by Paul Brennan)

Similarly, a study led by Elora Lee Raymond of Georgia Tech found a “spatially concentrated evictions rate” in Atlanta. An incredible 20 percent of all rental single-family homes received an eviction notice in 2015; in some Zip codes, 40 percent received eviction notices with more than 15 percent being evicted. Institutional investors are much more likely to evict: “We find that large corporate owners of single-family rentals, which we define as firms with more than 15 single-family rental homes in Fulton County, are 68 percent more likely than small landlords to file eviction notices even after controlling for past foreclosure status, property characteristics, tenant characteristics, and neighborhood.”

Another research report reached similar conclusions. Stateline reports that “Institutional buying in Georgia has focused on a ring of middle-class Black suburbs south of Atlanta, according to research by Brian An, an assistant professor of public policy at Georgia Tech. An said buying since 2007 was concentrated in southern Atlanta suburbs with mostly Black populations, low poverty, good schools and small affordable houses considered good starter homes.”

Heads, Wall Street wins and tails, you lose

Although the process is further along in certain cities, financialization of housing is an economic phenomenon, not a geographically specific one. Under financialization, housing is seen as an asset class used to generate financial profits, similar to stocks and bonds. Benjamin Teresa, writing for the affordable-housing publication Shelterforce, sums this up: “The financialization of housing is part of a long-term transformation of the economy, and so it has to be understood and analyzed not as a phenomenon of specific markets, such as expensive cities or supply-constrained regions, but as an emerging set of investment strategies and management practices that present real challenges to affordable housing advocates, tenants, and community development organizations.”

U.S. government policy has facilitated financialization. The 1990s reversal of the separation of commercial and investment banking put into law during the Great Depression; elimination of caps on interest rates on loans, encouraging higher-risk speculation; bailouts of banks and Wall Street that reward high-risk behavior; and the government creating a corporation to allow banks to offload their foreclosed homes instead of stabilizing tenants and owners of single homes during the Savings and Loan crisis all contributed. The Shelterforce analysis concludes:

“Financialization of housing does depend on housing scarcity, but it’s important to recognize that housing scarcity is produced in multiple ways, including by financial actors themselves. It’s not an inevitable condition financial firms are merely taking advantage of. Indeed, creating and maintaining housing scarcity through hoarding housing, gatekeeping housing, and evicting people from housing is a central preoccupation of financial investors. State-imposed austerity measures that prioritize short-term deficit reduction over functional social programs consistently reduce state support for housing, which in turn increases housing scarcity. And an attitude toward financial risk that prioritizes support to the banking and financial system above keeping people housed also produces scarcity.”

All this adds to the upward pressure on rents, already long subject to increases well above the rates of inflation or increases in wages. A May 2023 report by Moody’s Analytics — a pillar of the economic establishment hardly likely to embellish anything that would reflect badly on capitalism — found that half of U.S. renters are rent-burdened, defined as those who spend 30 percent or more of their gross income on housing. That is the highest percentage that has been recorded. A housing study conducted by Harvard University researchers also found that half of U.S. renters are rent-burdened and that the number of homeless people is at a record high. It’s not only renters who are in difficulties: When including those carrying mortgages, the Harvard researchers found that 42 million U.S. households are cost-burdened, or one-third of all U.S. households.

Being rent-burdened is bad for your health, a separate study unsurprisingly found. The study, “The impacts of rent burden and eviction on mortality in the United States, 2000–2019,” published in Social Science & Medicine, found that higher rent burdens, increases in rent burdens and evictions resulted in measurably higher levels of mortality. Evictions with judgments resulted in a 40 percent higher risk of death.

And higher rent burdens are quite common. From 1980 to 2022, rent increases in the United States averaged 8.9 percent. That has accelerated, as average U.S. rent increases were reported as 18 percent for 2021, 14 percent for 2022 and 12 percent for 2023, according to Azibo, a financial services company for the real estate industry. 

Thus it comes as no shock that rents in the U.S. increased twice as fast as inflation from 1999 to 2022 while real wages were essentially unchanged during that time. If you want the numbers, rent growth in that period was 135 percent, income growth was 77 percent and inflation was 76 percent.

Canadian rents rise beyond too damn high

The housing situation in Canada is no better and may actually be worse than it is in the United States. Rents in Canada rose 4.6 percent in 2021, 12.1 percent in 2022 and 8.6 percent in 2023 from already high rates. As a result, an astounding 63 percent of Canadian renters are rent-burdened! Although inflation arose in Canada as it did in much of the world, rent far outstripped inflation: Canadian prices rose a total of 11.3 percent for the period of 2021 to 2023. Thus rents in these years rose more than twice the rate of inflation.

As it is south of the border, rents in large Canadian cities are higher than elsewhere. On a countrywide average, according to National Bank of Canada data, a Canadian needs half of a median income to be able to pay the median condo mortgage — well above the 30 percent mark at which a household is classified as cost-burdened. Condos, in turn, are less expensive than other owned housing and are often seen as “starter” homes in Canada. Overall, for all mortgages, 65 percent of a median income is necessary to pay for a median mortgage. In Vancouver, more than 100 percent of a median income would be needed. In Toronto, nearly 90 percent. How many can afford that?

Nor is any improvement on the horizon. The National Bank of Canada, in its housing affordability summary, said, “While homeownership is becoming untenable, the rental market offers little respite. Our rental affordability index has never been worse.” The bank concluded: “The outlook for the coming year is fraught with challenges. While mortgage interest rates are showing signs of waning in the face of expected rate cuts by the central bank, housing demand remains supported by unprecedented population growth. As a result, we expect some upside to prices in 2024. On the rental side, in a recently released report by the [Canada Mortgage and Housing Corporation], Canada’s rental market vacancy stumbled to a record low of 1.5% which leaves little room for an improvement in rents.” The median rent for a one-bedroom apartment is an unaffordable C$2,700 in Vancouver and C$2,450 in Toronto.

Mass investor buying of homes has also reached dangerous proportions in Canada. Investors bought 30% of Canadian homes in the first quarter of 2023, up from 22 percent in 2020. Investors already owned more than one-fifth of all homes in five Canadian provinces in 2020. There is no accident here — one-third of all new properties in metropolitan Vancouver were built specifically for investment. Marc Lee, a senior economist at the Canadian Centre for Policy Alternatives speaking with CBC, said, “So much of the wealth ladder in Canada has been based around real estate. I think it’s come at the detriment of quality affordable housing for the majority of folks who are renters.”

Vancouver (photo by Andrew Raun)

Rent controls are used on a wider scale in Canada than they are in the United States, but that hasn’t seemed to slow the dizzying rise in rents and the cost of housing in general. Ontario, for example, has instituted a province-wide cap on rent increases of 2.5 percent for 2024. That is the same cap as was promulgated for 2023. But there are catches. The conservative government of Doug Ford in 2018 enacted legislation that exempts from rent caps any home built or first occupied after November 15, 2018, nor when a tenant leaves. As a result, although tenants who remained in their rental in 2022 received an average 3 percent increase in rent, units in which there was tenant turnover saw an 18 percent increase. Preliminary calculations imply there was a 25 percent rise for units that saw tenant turnover in 2023.

Don’t wait for the “market” to correct this situation. At the same time as homelessness swells and prices rise beyond affordability, there are about 1.3 million vacant homes in Canada — about 9 percent of the country’s total. This is the fifth highest total of any Organisation for Economic Co-operation and Development member country. (The United States has the most vacant homes, 15.6 million, and among all OECD countries, 10 percent of homes are vacant.)

Rents increased seven and a half times faster than wages from 2000 to 2020 in Canada. In part this is due to Canadian housing prices not taking a hit as happened in the United States in the wake of the 2008 economic collapse. But there is no downplaying the massive buying of homes, especially newer ones. And although cities such as Toronto and Vancouver draw the most attention, speculators are hungrily eyeing housing across the country. Better Dwelling, a housing news outlet, reported that investors own more than one-third of the housing and three-quarters of “recent completions” in the small northern British Columbia city of Fort St. John while snapping up more than half of new builds in another small B.C. city, Prince Rupert. “[I]nvestors are driving up home prices based strictly on the expectation home prices will always rise,” Better Dwelling said. “When this occurs, the market can become more vulnerable to an economic shock.”

“Free market” or with rent controls, European renters pay more

Across the Atlantic, rent is also too damn high. Perhaps nowhere in Europe is rent higher than in Britain. Half of all United Kingdom tenants are rent-burned with London tenants spending on average 41 percent of their income on rent. Although investors buying up homes appears to be becoming more common — investor borrowing is reported to have reached £18 billion in 2022 — it has not reached anywhere near North American levels yet. Nonetheless, British rents are up 25% since the start of the pandemic. Interest rates have been high the past couple of years, but not having a mortgage to pay seems to be no barrier to British landlords. A survey by Shelter, a tenants-rights advocate, found that two-thirds of mortgage-free landlords are raising rents anyway. It must be nice to let the money roll in while you sit with your feet on the desk: Average profits per tenant are now £800 per month.

I am unable to find any equivalent of the rent-burdened statistic for British tenants (that is, those paying at least 30 percent of their gross pay for rent) but there is no shortage of those paying too much. About one-quarter of U.K. renters are paying 40 percent or more for rent, the highest total in Europe. (Norway and Spain are next.) British rents are up 56 percent since October 2019, The Guardian reports. By comparison, real wage increase for British workers from 2019 to 2024 totals a paltry 5 percent.

One thing in common on both sides of the Atlantic is the crisis level of homeless people. Shelter reports that more than 300,000 were homeless in England at the end of 2022, nearly half of them children. That’s 14 percent more than a year earlier. So pervasive is this social problem that a separate Shelter report found that half of England’s teachers work at a school with homeless children. “For years, successive governments have failed to act on the ongoing and deepening housing emergency by failing to invest in enough social homes. The only alternative available to families is to rent privately. But rents for family homes have skyrocketed and have outpaced incomes, shutting off all options for many people,” the organization says.

The Palace of Westminster (photo by Andrew Dunn)

Rents are high not only in England. Dublin, Paris and Oslo are reported to be the European cities with the highest rents. Despite a 3.5 percent cap on rent raises in Paris, Parisian rents rose 6.5 percent from mid-2022 to mid-2023. Reports Le Monde, “Non-compliance with rent controls is an open secret. Despite this measure, 30% of new rentals exceeded the maximum rent allowed in 2021, according to the latest available data from the Observatory of Rents in the Paris Conurbation. ‘It’s even worse for small spaces: 80% of studios don’t comply with rent control,’ said Ian Brossat, Paris’s deputy mayor for housing (Communist).” A recent city survey found that 35 percent of Paris rental properties are rented at prices higher than allowed under rent-control rules.

Rents in Dublin reached €2,102 per month in August 2022, with new tenancies 9 percent more expensive than a year earlier. The rest of Ireland appears to be catching up; although rents outside the capital are much less expensive the overall rent increase for Ireland as a whole was almost 11 percent for 2023. Rents in Oslo are reported to have risen 17 percent in a year with country-wide rents in Norway up 12 percent. Recent large increases in the price of buying a home have forced more Norwegians into the rental market, so much that a recent pause in real estate prices has not caused rent increases to slow.

Housing as a commodity rather than a human right

OK, I’ve likely provided more numbers than many readers might care to digest. So let’s ask why rents are too damn high and why they have risen much faster than inflation for so many years. As long as housing is treated as a commodity to be bought and sold by the highest bidder, housing costs will increase and we’ll remain at the mercy of landlords, who, under gentrification, decide who is allowed to stay and who will be pushed out of their homes. And as pristine markets exist only in the minds of orthodox economists, not in the real world, the wealth accrued by landlords and developers enable them to exert powerful influences on local, state and provincial political office holders, and thus push laws to their benefit. Rent controls are prohibited or not in existence in most places, especially in the United States, and often those that are in place have loopholes or weaknesses that allow landlords to raise rents anyway. And as luxury housing for the wealthy is more profitable than other housing, that is what developers will build when “markets” are left to determine what gets built.

Market forces are nothing more than the aggregate interests of the largest industrialists and financiers. Markets do not sit high in the clouds, dispassionately sorting out worthy winners and losers in some benign process of divine justice, as ideologues would have us believe. There is no magic at work here.

Neither housing, nor education, nor a clean environment are considered rights in capitalist formal democracies, and if you live in the United States, health care is not a right, either. Democracy is defined as the right to freely vote in political elections that determine little (although even this right is increasingly abrogated in the U.S.) and to choose whatever consumer product you wish to buy. Having more flavors of soda to choose from really shouldn’t be the definition of democracy or “freedom.”

That is because “freedom” is equated with individualism, a specific form of individualism that is shorn of responsibility. 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. Imposing harsher working conditions is another aspect of this individualistic “freedom,” but freedom for who? “Freedom” for industrialists and financiers is freedom to rule over, control and exploit others; “justice” is the unfettered ability to enjoy this freedom, a justice reflected in legal structures. Working people are “free” to compete in a race to the bottom set up by capitalists.

Even in the United States, rent control has been used successfully in the past. In parallel with price controls on consumer goods and government guidance of the economy during World War II, the federal government established caps on rent to prevent profiteering that the government deemed a threat to civilian morale. After the war, when federal government controls were ended, rent control was devolved to state governments; not surprisingly denunciations of rent control went hand-in-hand with the anti-communist scare mongering that was quickly fanned to dampen political dissent. A brief wave of new rent-control measures was overturned in the 1980s, when Reaganism was instituted; this neoliberal turn was intended to restore corporate profits at the expense of working people. As to this latest turn, Oksana Mironova, writing in Portside, said:

“The anti-rent control push was part and parcel of a revanchist political turn that championed deregulation, austerity, and carceral solutions over measures that not only were of no benefit to marginalized people, but also dehumanized and actively harmed them. As the social safety net frayed, rent control became a convenient scapegoat for declining housing conditions, increased homelessness, and even increases in street crime.”

Housing reform is increasingly on the agenda, and there is no reason why such an activist upsurge can’t continue. Reforms advocated by housing activists such as much enhanced rent control laws and a massive increase in publicly funded housing would certainly be welcome, as would redirecting tax breaks to be used only for buildings that will have 100 percent affordable units. Any short-term solutions that can ameliorate the high cost of housing are welcome. Ultimately, however, unaffordable rent increases beyond inflation levels or wage growth will not be history until housing is no longer a capitalist commodity. Public intervention, not markets, is the solution. Why is housing not a human right?

So long, and thanks for all the hamburgers

It’s not true that humanity is committing suicide, as exemplified by the COP28 farce of a climate summit. The world’s industrialists and financiers are committing humanity to ecocide. More than ever, it’s easier to imagine the end of the world than the end of capitalism.

Death by capitalism. That phrase has a certain catchy feeling to it. But it’s no joke, is it? No, no joke at all.

No joke, and no vote. You didn’t get a vote on whether greenhouse gas emissions should continue at a pace to unleash catastrophically rising seas, unbearable heat, droughts, environmental destruction and an increasingly erratic climate in a cascade of cause and effect that will trigger still more climatic instability. The world’s capitalists — in particular, those who control and profit from fossil fuel corporations — have voted, did vote and will continue to vote for profits today and indifference to human and animal life tomorrow. Hurray!

The financial industry mentality has always been to squeeze every dollar out of a stone today and the hell with tomorrow. The fossil fuel industry mentality is much the same. Tomorrow increasingly looks like it will be hell. Tomorrow may not come for a few more decades, perhaps, but it does seem that tomorrow will arrive and it won’t be a pleasant time.

No more than a brief recap of the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (as COP28 is formally known) is necessary. Destined to be even more of a farce than previous climate change summits given it was hosted by the oil-reliant United Arab Emirates with the chief executive officer of the UAE state oil company, Sultan Al Jaber, serving as COP28 president. Laughter may often be better than crying, but laughter just doesn’t seem right for this level of irresponsibility and contempt for humanity and the environment.

Perhaps next year’s COP29 can be scheduled for the offices of ExxonMobil? Or perhaps the world’s oil majors can bid on which will host? I do know that Baku, Azerbaijan, has been designated as the site for COP29 and that Azerbaijan is a significant oil and gas producer, even if not as big as the United Arab Emirates. But we might as well take the final step toward making these annual climate summits a complete farce. It would at least be more honest.

They delivered empty talk

The official COP28 website is quite cheery and is headlined “We United/We Acted/We Delivered.” Beyond continuing oil and gas profits, it is difficult to say what was delivered. The official final statement declares “the Parties agreed a landmark text named The UAE Consensus, that sets out an ambitious climate agenda to keep 1.5°C within reach. The UAE Consensus calls on Parties to transition away from fossil fuels to reach net zero, encourages them to submit economy-wide Nationally Determined Contributions (NDCs), includes a new specific target to triple renewables and double energy efficiency by 2030, and builds momentum towards a new architecture for climate finance.”

When we look at the details, we find that the “UAE Consensus” is “An unprecedented reference to transitioning away from all fossil fuels to enable the world to reach net zero by 2050” and that “economy-wide emission reduction targets” are “encouraged.” In other words, nothing concrete. What does “transition away” mean? Not much. And that countries are “encouraged” to reduce greenhouse gas emissions means that, as with past climate summits, there are no mechanisms to ensure any promises are kept. And are environmental organizations seen as relevant to any process of reducing emissions? Certainly not! Instead, finance capital will save us: Another point is “Building momentum behind the financial architecture reform agenda, recognizing the role of credit rating agencies for the first time, and calling for a scale up of concessional and grant finance.”

Banks are not going to save us. From 2015, when the Paris Climate Accord was signed, through 2022, 60 of the world’s biggest banks have invested US$4.6 trillion in fossil fuel projects. And the amount of money the controllers of finance capital are investing is growing: $742 billion was invested in the industry in 2021 alone. Four United States-based banks were the worst offenders, according to a report by seven environmental organizations, and three Canadian banks are among the top dozen in the world for financing fossil fuels. Each of these are big contributors to fracking and tar sands production. It’s not only companies like Saudi Aramco and the Abu Dhabi National Oil Company.

What was that about crying or laughing? So it’s more idle talk, the same as previous climate summits. Last year’s COP27 in Egypt established a “loss and damage” fund for Global South countries that remains voluntary and features an implementation plan that “requests” countries that have not yet done so “revisit and strengthen” their 2030 climate targets. Note that word: “requests.” Oh please consider stopping your environmental destruction if it’s not too inconvenient. That was preceded by COP26 in Glasgow failing to enact any enforcement mechanisms; COP25 in Madrid concluding with an announcement of two more years of roundtables; COP24 in Katowice, Poland, promoting coal; and COP23 in Bonn ending with a promise that people will get together and talk some more.

A vague declaration that countries will “transition away” in some unspecified and non-enforceable way is consistent with past climate summits. And what might be expected from a conference in which a record number of fossil fuel delegates were in attendance — more than 2,400 and four times more than were in attendance at COP27. For added fun, the COP28 president, Sultan Al Jaber, declared that a phaseout of fossil fuels would “take the world back into caves” and that there is “no science out there, or no scenario out there, that says that the phase-out of fossil fuel is what’s going to achieve 1.5 [degrees] C.” The OPEC cartel of oil-producing countries declared its members should “proactively reject” any reduction target aimed at fossil fuels and ExxonMobil’s chief executive officer, Darren Woods, complained that climate talks focus too much on renewable energy.

The world was not impressed

Thus it is with less than surprise that independent assessments of COP28 are less than glowing. Here is the assessment of Climate Action Tracker

“Few of the sectoral initiatives announced during COP28 will meaningfully contribute to closing the emissions gap. Many of them lack either the ambition, clarity, coverage or accountability needed to really make a difference. We estimate that of the total emissions savings that could be achieved by the pledges, around a quarter is already included in government [nationally determined contributions], around a quarter is additional and achievable, and around half is unlikely to be achieved without further action to improve the initiatives. … The ‘Oil and Gas Decarbonisation Accelerator’ is a prime example of a greenwashing initiative by oil and gas companies. It only focuses on upstream emissions from oil and gas production — but the real change has to come from phasing out fossil fuels, where emissions are at least five times greater.”

The “Oil and Gas Decarbonisation Accelerator” is a promise by oil companies to reduce emissions that occur during the production of oil and gas, including a halt to “routine flaring” by 2030. Climate Action Tracker’s report states that “The initiative risks being a distraction that misses the woods for the trees.” That is because emissions from the combustion of oil and gas are nearly nine times greater than the emissions from oil and gas extraction. In other words, it is fossil fuels themselves that must be phased out because it is their use that is responsible for the lion’s share of greenhouse gas emissions. But the likelihood of meaningful reduction of production emissions is “negligible” because China and Russia have not signed up to this initiative, while Canada, Norway and the United States “are way behind in meeting their 2030 emissions reduction targets,” and would need to fulfill this promise to make progress on overall reduction pledges.

Overall, the world is nowhere near successfully limiting global warming to the Paris Climate Summit goal of holding global warming to 1.5 degrees C. above the pre-industrial level. Even if all current pledges were to be met, a temperature increase of 2.1 degrees by 2100 can be expected, and if current business as usual continues, the world is looking at an increase of 2.7 degrees by the end of the century. And of course if there is no serious mitigation, temperature rises will not stop in 2100.

None of this has gone unnoticed. More than 300 civil society organizations signed a letter calling for a phaseout of fossil fuels as part of an equitable global energy transition. Declaring that “The only way to achieve the ambition of the Paris Agreement is to substantially reduce the extraction and consumption of fossil fuels, starting now,” the letter states:

“COP28 must adopt a comprehensive energy transformation package with legal force – including a full, fast, fair, and funded fossil fuel phaseout, renewable energy and energy efficiency targets, real protections for people and nature, and massively scaled up public funding on fair terms. … By refusing to commit to address the emissions from oil and gas being burned and to end fossil fuel expansion, the proposed ‘Global Decarbonization Accelerator’ would serve as a smokescreen to hide the reality that we need to phase out oil, gas, and coal.”

Will there be enough to eat?

The world’s food supply is at stake in this environmental crisis as well. Representatives of small farmers, such as La Via Campesina, were drowned out by lobbyists for Big Agriculture. Large U.S.-based meat and dairy companies have “spent millions campaigning against climate action and sowing doubt about the links between animal agriculture and climate change,” according to New York University research. Speaking with Inside Climate News, Oliver Lazarus, one of the study’s three authors, said, “These companies are some of the world’s biggest contributors to climate change.” A report in DeSmog notes, “While big meat and dairy corporations have spent millions lobbying against climate action, smallholder farmers are disproportionately victims of the climate crisis.” The DeSmog report added, “While small farms feed most people in low- and middle-income nations, they are responsible for only a fraction of global farming emissions. Helping smallholders to adapt and respond to climate change is fundamental for climate justice.”

The world’s capitalist food system brings us inflation, hunger and waste — more than one-third of the world’s population did not have access to adequate food in 2020, according to a United Nations Food and Agricultural Organization report.

Is it really necessary to restate the case? Another UN study, Emissions Gap Report 2022: The Closing Window, states that climate policies currently in place “point to a 2.8°C temperature rise by the end of the century.” The report adds, “only an urgent system-wide transformation can deliver the enormous cuts needed to limit greenhouse gas emissions by 2030: 45 per cent compared with projections based on policies currently in place to get on track to 1.5°C and 30 per cent for 2°C.”

As a final piling on, there is the Global Tipping Points report issued by a consortium of scientists and issued by Exeter University in Britain. “Harmful tipping points in the natural world pose some of the gravest threats faced by humanity,” the report says. “Their triggering will severely damage our planet’s life-support systems and threaten the stability of our societies.” Five tipping points already at risk of breaching are the Greenland and West Antarctic ice sheets, warm-water coral reefs, North Atlantic Subpolar Gyre circulation and permafrost regions. These would have catastrophic consequences:

“For example, the collapse of the Atlantic Ocean’s great overturning circulation combined with global warming could cause half of the global area for growing wheat and maize to be lost. Five major tipping points are already at risk of being crossed due to warming right now and three more are threatened in the 2030s as the world exceeds 1.5°C global warming. The full damage caused by negative tipping points will be far greater than their initial impact. The effects will cascade through globalised social and economic systems, and could exceed the ability of some countries to adapt. Negative tipping points show that the threat posed by the climate and ecological crisis is far more severe than is commonly understood and is of a magnitude never before faced by humanity.”

Nonetheless, the capitalist system’s industrialists and financiers, and the governments that cater to them and bend to their will, would like nothing more than to continue business as usual. That will soon be impossible. Once again, our descendants — living in a world of flooded cities, food shortages, resource depletion, mass species die-offs, unprecedented human migration and large numbers of people dying should business as usual continue — are not likely to believe that their ruined world would be a fair tradeoff for a handful of industrialists and financiers of the past getting obscenely rich. We live in a global economic system under which it is profitable for a handful of powerful people to profit from the destruction of the environment, and this behavior is richly rewarded. The end of capitalism is precisely what must be envisioned. Organize like your life depends on it, because it does.