Verizon sticks it to its workers because $45 billion isn’t enough

Does a company that racked up $45 billion in profits over the past five years really need to stick it to its employees? The answer depends on who’s asking. From any ordinary human standpoint, clearly no. From the perspective of Wall Street and corporate board rooms, the answer is always an enthusiastic yes.

Class warfare is on display in stark terms at Verizon Communications, and although such direct terms are avoided by the corporate media, there is much talk of the strike against Verizon by the Communications Workers of America and International Brotherhood of Electrical Workers as “labor’s last stand.” That might be a little hyperbolic, or it might be wishful thinking, as such talk of last stands is often intertwined with juxtaposing unionized older sectors with non-unionized sectors that are promoted as “new” and “vibrant.”

We've seen this before: Three unions protest outside Verizon headquarters in Philadelphia in August 2009 (photo by Liz McElroy, for the aflcio2008)

We’ve seen this before: Three unions protest outside Verizon headquarters in Philadelphia in August 2009 (photo by Liz McElroy, for the aflcio2008)

Typical of the corporate media is this report from NBC News, referring to Verizon’s non-unionized wireless operations:

“ ‘The question is, is there going to be a unionized presence in this advanced, technologically innovative kind of industry?’ said Nelson Lichtenstein, director of the Center for the Study of Labor, Work, and Democracy at the University of California — Santa Barbara. The likely answer doesn’t bode well for unions.”

Perhaps an unconscious nod to the technology sector’s old-fashioned exploitation of workers despite its carefully calculated image of modernity, online media has been as responsive to corporate power as has the traditional corporate media. A study of four prominent outlets conducted by Fair & Accuracy In Reporting found 31 direct quotes, either via interviews or press releases, by management during the first days of the Verizon strike versus 13 by workers. The FAIR report said:

“Corporate media coverage of this strike illustrated the fundamental asymmetry of power that still exists between multi-billion-dollar corporations and comparatively small unions. (A union like Communications Workers of America has an annual budget roughly 1/500th of Verizon’s annual revenues of $131 billion.) An analysis of coverage in two major ‘old media’ outlets (New York Times and Washington Post) and two ‘new media’ outlets (Buzzfeed and Vox) exposes a consistent pattern of prioritizing management’s voice over that of the workers or their representatives, to the tune of roughly 2-to-1.”

More is never enough at the top

About 40,000 Verizon workers walked out on April 13, and Verizon continues to take a hard line against its employees. Despite the $45.3 billion in net income the company has reported for the past five years, its notorious tax dodging (more on that below) and the $350 million in compensation ladled out to its top five executives during a recent five-year period, Verizon’s line is — guess what! — the workers are greedy. (Incidentally, Verizon laid off 39,000 workers during that five-year period.) They are portrayed as greedy because they believe they should be paid a living wage and shouldn’t have to relocate for months at a time, away from their families and communities.

Among the complaints of the strikers are Verizon’s moving of call-center jobs overseas; closing of U.S. call centers; outsourcing other work, including installing and maintaining phone lines, to low-wage, non-unionized contractors; and being forced to work far away, sometimes hundreds of miles away, for months at a time. Working conditions are also an issue, as a Communications Workers of America strike update notes:

“Verizon management has created a sweatshop environment with its excessive monitoring and unreasonable overtime assignments. Employees are monitored in call centers by the electronic recording of every call. Outside technicians are monitored with a Global Positioning System tracking every aspect of movement of the company vehicles. The mismanagement of these monitoring tools has created high levels of stress affecting employee productivity and morale. Call center management routinely assign overtime to employees and then without any concern for the employee’s quality of life cancel assignments less than 10 minutes before the scheduled overtime while directing calls to contract vendors. Outside technicians have been forced to work overtime to the point of exhaustion because the Company has not hired enough technicians to keep up with the workload. Members deserve better treatment than this.”

A classic example, not only of the inhuman treatment often meted out by corporate managements, but of technology, in the hands of capitalists, being a tool of repression rather than “liberatory.” This parallels the supposed “innovation” of technology companies that misclassify their employees as “independent contractors” to exploit them more ruthlessly, thus putting old models of weakening labor protections in new “high tech” wrapping. Nor is there anything new about corporations making hundreds of thousands or even millions of dollars per employee and crying they don’t make enough.

A leader at tax dodging

Dodging taxes is yet another capitalist “innovation.” Although far from alone in this, Verizon is flatly lying when it claims it pays the standard 35 percent corporate tax rate of the U.S. In fact, Verizon enjoyed a tax rate of minus two percent for the period of 2008 through 2013. Yep, despite racking up $42 billion in profits during those six years, it paid no federal taxes. For the years 2008 to 2012, Verizon received a composite $535 million in tax rebates. Although the company did pay taxes the past two years, it paid at a rate lower than what its employees pay.

Then there are corporate subsidies — Verizon pocketed $60 million in subsidies over the past decade from the New Jersey state government alone, yet far from hiring new workers, it laid off more than 300 in that state. The corrupt administration of Governor Chris Christie, which has handed out billions of dollars in corporate giveaways, did not ask for the money back from Verizon despite the failure to create jobs.

Once again, Verizon is not unique. Tax dodging by multi-national corporations costs the U.S. about $111 billion per year, according to an Oxfam report.

As an added insult, Verizon spent $110 million on lobbying for the years 2008 to 2014, and holds $1.3 billion in cash in offshore accounts — money that is hidden so as to not be not taxed.

That such behavior is the corporate norm does not excuse Verizon. A company that reports billions of dollars in annual profits, pays millions to its executives and dodges taxes by the billions can afford to pay its workers a living wage and treat them with dignity. Underlying this battle is Verizon’s wish to concentrate more of its workforce to its non-unionized subsidiaries. Workers in the company’s Verizon Wireless unit are not represented by a union and make far less; Verizon is far more interested in investing in this portion of its business than its legacy landline and cable businesses.

Neoliberalism and the promotion of jealousy

A New Yorker article that was not sympathetic to the strikers nonetheless pointed out the big differences in wages that unionized workers are defending:

“When Verizon workers walked off the job in 2000, there were eighty-five thousand workers striking, and they represented the main part of Verizon’s business. In sixteen years, the number of unionized workers has fallen by more than half. And it’s worth noting that a customer-service agent who makes north of sixty thousand at Verizon would make closer to thirty-six thousand on the company’s wireless side, according to the job site Glassdoor.”

Neoliberal ideology aims to generate jealousy that someone else has a good wage with benefits and some measure of security, lest too many people get the idea that they ought to have those wages and benefits, too. Recall the public-relations battle over the removal of collective-bargaining rights from Wisconsin public workers in 2012. Wisconsin Governor Scott Walker and the corporate powers that animate him waged their war on working people through careful framing.

Conservative ideology insists the question should be “Why does someone have something you don’t have” (such as a pension), instead of “Why do you not have something that you should be entitled to but don’t have.” Once the question was framed that way in Wisconsin, and anti-government rhetoric was wrapped around it, there was a short path to making pensions indistinguishable from excessive government spending.

In that case, government workers were specifically made scapegoats for tactical reasons, but unionized workers are more generally the target of scapegoating, and Verizon flacks have made sure to inflate the actual size of strikers’ wages so as to portray them as “greedy.” It remains to be seen if this tactic will work if the strike become lengthy. It also remains to what extent union leaders will cuddle up to the Democratic Party, and thus dampen rank-and-file militancy. Democrats are openly supporting the strikers right now — it is an election year after all — but the decades-long tactic of unions throwing support to Democrats without asking for anything in return has played its part in the decline of unions and increase in inequality.

When you guarantee unconditional support, when you keep your mouth shut when you are forgotten after the election, when you desperately suppress any independent mass movement, when you are so comfortable in your bubble that you can’t conceive of doing anything different, when you are unable to differentiate between a crumb and a loaf, you will lose. And you will keep losing. It’s long past time for working people to build our own organizations independent of corporate parties and to end illusions that the system that creates a Verizon can be reformed and made “nice.”

Military spending is the capitalist world’s fuel

It is common for activists to decry the enormous sums of money spent on the military. Any number of social programs, or schools, or other public benefits could instead be funded.

Not least is this the case with the United States, which by far spends the most of any country on its military. The official Pentagon budget for 2015 was $596 billion, but actual spending is far higher. (Figures for 2015 will be used because that is the latest year for which data is available to make international comparisons.) If we add military spending parked in other portions of the U.S. federal government budget, we’re up to $786 billion, according to a study by the War Resisters League. Veterans benefits add another $157 billion. WRL also assigns 80 percent of the interest on the budget deficit, and that puts the grand total well above $1 trillion.

The War Resisters League notes that other organizations estimate that 50 to 60 percent of the interest would be more accurate. Let’s split the difference — if we assign 65 percent of the interest payments to past military spending (midway between the high and low estimates), then the true amount of U.S. military spending was $1.25 trillion. Yes, that is a gigantic sum of money. So gigantic that it was more than the military spending of every other country on Earth combined.

(Cartoon by Carlos Latuff)

(Cartoon by Carlos Latuff)

China is second in military spending, but far behind at US$215 billion in 2015, according to an estimate by the Stockholm International Peace Research Institute. Saudi Arabia ($87.2 billion), Russia ($66.4 billion) and Britain ($55.5 billion) round out the top five. And lest we chalk up the bloated Pentagon budget to the size of the U.S. economy, the official $596 billion budget constituted 3.5 percent of its gross domestic product, the fourth-highest ratio in the world, while China spent 2.1 percent of its GDP on its military. But if we use the actual total of U.S. military spending, then U.S. spending as a share of GDP leaps to second place, trailing only Saudi Arabia.

The U.S. maintains military bases in 80 countries, and has military personnel in about 160 foreign countries and territories. Another way of looking at this question is the number of foreign military bases: The U.S. has around 800 while the rest of the world combined has perhaps 30, according to an analysis published in The Nation. Almost half of those 30 belong to Britain or France.

Asking others to pay more is endorsing imperialism

Is there some sort of altruism in the U.S. setting itself up as the gendarme of the world? Well, that’s a rhetorical question, obviously, but such self-deception is widespread, and not just among the foreign-policy establishment.

One line of critique sometimes heard, especially during this year’s presidential campaign, is that the U.S. should demand its allies “pay their fair share.” It’s not only from Right-wing quarters that phrase is heard, but even from Left populist Bernie Sanders, who insisted during this month’s Brooklyn debate with Hillary Clinton that other members of NATO ought to pay more so the Pentagon budget can be cut. Senator Sanders said this in the context of pointing out the superior social benefits across Europe as compared to the U.S., but what it really implies is that militarism is justified.

Setting aside that Senator Sanders’ record on imperialism is not nearly as distant from Secretary Clinton’s as his supporters believe, it is a reflection of how deeply imperialism is in the bones of United Statesians when even the candidate positioning himself as a Left insurgent doesn’t seriously question the scale of military operations or their purpose.

So why is U.S. military spending so high? It’s because the repeated use of force is what is necessary to maintain the capitalist system. As top dog in the world capitalist system, it’s up to the U.S. to do what is necessary to keep itself, and its multi-national corporations, in the driver’s seat. That has been a successful project. U.S.-based multi-nationals hold the world’s highest share in 18 of 25 broad industrial sectors, according to an analysis in New Left Review, and often by commanding margins — U.S. multi-nationals hold at least a 40 percent global share in 10 of those sectors.

A partial list of U.S. interventions from 1890, as compiled by Zoltán Grossman, a professor at Evergreen State College in Olympia, Washington state, lists more than 130 foreign military interventions (not including the use of troops to put down strikes within the U.S.). Consistently, these were used to impose U.S. dictates on smaller countries.

At the beginning of the 20th century, U.S. President William Howard Taft declared that his foreign policy was “to include active intervention to secure our merchandise and our capitalists opportunity for profitable investment” abroad. Taft overthrew the government of Nicaragua to punish it for taking a loan from a British bank rather than a U.S. bank, and then put Nicaragua’s customs collections under U.S. control and handed two U.S. banks control of Nicaragua’s national bank and railroad. Little has changed since, including the overthrows of the governments of Iran (1953), Guatemala (1954), Brazil (1964) and Chile (1973), and more recently the invasion of Iraq and the attempted overthrow of the Venezuelan government.

Muscle men for big business

We need only recall the statement of Marine Corps general Smedley Butler, who summarized his highly decorated career in 1935, in this manner:

“I spent thirty three years and four months [in] the Marine Corps. … [D]uring that period I spent most of my time being a high-class muscle man for Big Business, for Wall Street and for bankers. In short, I was a racketeer for capitalism.”

The bipartisan refusal to acknowledge this is exemplified in U.S. narratives concerning the Vietnam War. The “debate” that is conducted in the corporate media is only between two “acceptable” viewpoints — an honorable effort that tragically failed or a well-intentioned but flawed effort that should not have been undertaken if the U.S. was not going to be “serious” about fighting. Never mind that tonnage of bombs dropped on Vietnam were greater than what was dropped by all combatants in World War II combined, 3 million Vietnamese were killed, cities were reduced to rubble and millions of acres of farmland was destroyed. By what sane measure could this be said to be fighting “without really trying,” as Right-wing mythology still asserts?

No modern corporate enterprise would be complete without subcontracting, and the Pentagon has not stinted here. That is not a reference to the massive, and often guaranteed, profits that military contractors enjoy as more supply operations are handed over to connected companies, but rather to the teaching of torture techniques to other militaries so that some of the dirty work of maintaining capitalism can be undertaken locally.

military bases surround RussiaThe U.S. Army’s infamous School of the Americas, lately masquerading under the deceptively bland-sounding name Western Hemisphere Institute for Security Cooperation, has long been a finishing school for the personnel enforcing the rule of military and civilian dictatorships throughout Latin America. Major Joe Blair, who was the director of instruction at the School of the Americas from 1986 to 1989, had this to say about the curriculum:

“The doctrine that was taught was that if you want information you use physical abuse, false imprisonment, threats to family members, and killing. If you can’t get the information you want, if you can’t get that person to shut up or stop what they’re doing, you assassinate them—and you assassinate them with one of your death squads.”

The change of the name more than a decade ago was cosmetic, Major Blair said while testifying at a 2002 trial of School of the Americas protestors:

“There are no substantive changes besides the name. They teach the identical courses that I taught, and changed the course names and use the same manuals.”

The entire history of capitalism is built on violence, and violence has been used to both impose and maintain the system from its earliest days. Slavery, colonialism, dispossession of the commons, draconian laws forcing peasants into factories and control of the state to suppress all opposition to economic coercion built capitalism. The forms of domination change over the years, and are often financial rather than openly militaristic today (although the armed fist lurks in the background); regardless, exploitation is the lifeblood of wealth. Demanding that the cost of this should be spread around is a demand to continue exploitation, domination and imperialism, and nothing more.

There’s no place for clean water under ‘free trade’

Yet another standoff between clean drinking water and mining profits has taken shape in Colombia, where two corporations insist their right to pollute trumps human health and the environment. As is customary in these cases, it is clean water that is the underdog here.

Two million people are dependent on water from a high-altitude wetlands, which is also a refuge for endangered species, that a Canadian mining company, Eco Oro Minerals Corporation, wants to use for a gold mine. The wetlands, the Santurbán páramo in the Andes, has been declared off-limits for mining by Colombia’s highest court due to the area’s environmental sensitivity. Eco Oro is suing the Colombian government because of this under the Canada-Colombia Free Trade Agreement.

The dispute will likely be heard by a secret tribunal that is an arm of the World Bank, even though the World Bank has provided investment capital for Eco Oro to develop the mine.

The Colombian Andes (photo by Luisalberto p)

The Colombian Andes (photo by Luisalberto p)

Eco Oro has not said how much money it intends to ask for, but another mining company, the U.S.-based Tobie Mining and Energy Inc., has separately sued Colombia for US$16.5 billion because the government refused to allow it to establish a gold mine in a national park. To put that $16.5 billion in perspective, the total represents more than 20 percent of Colombia’s budget.

To the north, El Salvador is still awaiting the decision of another secret tribunal in a case heard in September 2014. An Australian mining company, OceanaGold, sued El Salvador for $301 million because it was denied a permit to create a gold mine that would have poisoned the country’s biggest source of water.

Under “free trade” agreements (which have little to do with trade and much to do with enhancing corporate power), governments agree to the mandatory use of “investor-state dispute mechanisms.” What that bland-sounding phrase means is that any “investor” can sue a signatory government to overturn any law or regulation it does not like because the law or regulation “confiscates” its expected profits, with no limitations on who or what constitutes an “investment.” These cases are not heard in regular judicial systems, but rather in secret tribunals with no oversight, no public notice and no appeals. The judges who sit on these tribunals are corporate lawyers whose regular practice is representing corporations in these types of disputes.

Environmentalists rally for sensitive wetlands

In the latest Colombian case, that of Eco Oro Minerals, the company sued one month after the Constitutional Court of Colombia ruled that a government plan to permit mining in some portions of the country’s sensitive high-altitude wetlands is unconstitutional. Eco Oro’s original plan was for an open-pit mine, which was denied by the environmental ministry thanks to an organized campaign by environmentalists. Denied a permit, Eco Oro then began plans for an underground mine, and received $16.8 million in financing from the World Bank to fund a new study. The environmental ministry subsequently declared the area a protected region, rendering illegal any mine. The final chance to open a mine was ended when the Constitutional Court ruled in February 2016.

The mining company has declared Colombia “in breach” of its obligations and notified Bogotá of its intention to sue if a negotiated settlement can’t be reached. Eco Oro issued a public statement that said, in part:

“The dispute has arisen out of the Government’s measures and omissions, which have directly impacted the rights granted to Eco Oro to explore and exploit its Angostura Project. The measures and omissions that have affected Eco Oro include (without limitation) the Government’s unreasonable delay in clarifying the limits of the Santurbán Páramo and whether it overlapped with the Angostura Project and its persistent failure to provide clarity as to Eco Oro’s right to continue developing its mining project in light of further undefined requirements and later as a consequence of the Constitutional Court’s decision of February 8, 2016, which has broadened the prohibition of mining activities in páramo areas.”

To use more direct language, the company declares it should be allowed to destroy environments for unlimited profit-making. Colombia’s high-altitude wetlands provide 70 percent of the country’s fresh water, so protecting them is hardly unreasonable. But “free trade” agreements elevate corporations to the level of a national government (or, arguably, above national governments because only corporations have the right to sue) and elevate private profits above all other human concerns.

Giving with one hand, taking with the other

A commentary in Naked Capitalism notes the irony of the World Bank funding destructive projects at the same time Western governments are encouraging environmental measures to mitigate global warming. The commentator, Don Quijones, writes:

“[W]hile vast sums of Western taxpayer funds are pouring into Colombia to encourage it to protect its environment, Western corporations — with full backing from the World Bank — are doing all they can to prevent the government from safe-guarding its environment, including the water supply its people depend on.”

Earlier this month, the World Bank declared it would make a “fundamental shift” by now diverting money to projects that will ameliorate global warming, and claiming that all its future investments would take climate change into account. Disbelief would be justified here, considering the World Bank’s record of financing massive projects that pollute and contribute greatly to global warming, and that the bank, in 2012, issued a report sounding an alarm against global warming to no noticeable effect.

But that World Bank report was a feat of monumental hypocrisy, and not simply because it called for shifting of money toward “green capitalism” initiatives — in other words, the same runaway train that has brought the world to the brink of catastrophic global warming is supposed to now magically save the world. The World Bank has provided billions of dollars to finance new coal plants around the world in the recent years and repeatedly has provided capital to make possible dams and energy projects that have displaced large numbers of people and disrupted ecosystems.

Mining company says national park is ‘fraudulent’

The other case filed against Colombia, by the U.S. mining company Tobie Mining and Energy, claims that the country’s government has “expropriated” its investment and that the creating a national park is “fraudulent.” Tobie claims that the Colombian government (then headed by hard-right authoritarian Álvaro Uribe, whom the company extravagantly praises on its web site) granted approval for its proposed mine in 2008, but before a final agreement could be reached, a national park was created, blocking the mine.

Tobie demands $16.5 billion or to be allowed to go ahead with its gold mine, but does not explain how it calculates what it claims to be the “fair value” of the mining concession. The entire value of all gold exported from Colombia in 2014 (latest figures available) was $1.4 billion, according to the World Bank — considerably less than the value of coffee exported. The value of Eco Oro’s disallowed mine is also subject to question, as a Canadian Parliament report on trade estimates the value of Colombian “energy and other” products imported to Canada to be C$280 million.

The World Bank secret tribunal that will hear Eco Oro’s suit against Colombia (formally known as the International Centre for Settlement of Investment Disputes, or ICSID) has a long history of one-sided, pro-corporate rulings. The latest of these, on April 4, was a decision that Venezuela must pay the Canadian mining company Crystallex International US$1.4 billion for denying a permit on environmental grounds. The area Crystallex wanted to mine is one of only four pristine forests in Venezuela and home to several Indigenous peoples.

Among other decisions handed down, Canada was forced to reverse its ban of the gasoline additive MMT and pay compensation to a U.S. chemical company; Mexico was forced to grant a permit to a U.S. metal company that wanted to site an environmentally dangerous waste dump and pay compensation; and Canada was required to reverse a transport ban on PCBs that had conformed to environmental treaties. In this last case, for good measure, the secret tribunal ruled that, when formulating an environmental rule, a government “is obliged to adopt the alternative that is most consistent with open trade.”

That last ruling provides the essence of “free trade” agreements — the accumulation of corporate power to override all democratic controls over health, safety, environmental or labor safeguards. And as awful as these decisions are, worse is what would await us should the Trans-Pacific or Transatlantic partnerships go through as those agreements promise even more draconian rules than the ones already in place.

No planet for optimists: Coastal flooding may come sooner than we fear

When it comes to global warming, what else don’t we know? What science does know, and what it can infer from studying archeological records, already makes anybody who thinks the long-term habitability of Earth is more important than short-term profits very worried.

One detail that may have been under-appreciated is meltwater. Melting ice sheets, especially in Greenland and Antarctica, is well understood to raise the sea level. But the effects might not be simply the additional water added to the oceans. In this scenario, the melted freshwater will additionally increase warming, thereby creating a feedback loop that will accelerate the loss of polar ice sheets, thus accelerating the rate of sea-level rise. How fast? Fast enough that the sea level could rise “several meters,” possibly six to nine meters, in 50 to 150 years.

This sobering prediction of what might happen without a drastic reduction in greenhouse-gas emissions is the conclusion of 19 climate scientists from the United States, France, Germany and China who studied the effect of growing ice melt from Greenland and Antarctica through the use of climate simulations, paleoclimate data and modern observations. The paper, published in Atmospheric Chemistry and Physics and led by James Hansen, concludes that swift action is necessary in the face of a “global emergency.”

Icebergs breaking off glaciers at Cape York, Greenland (photo by BrockenInaGlory)

Icebergs breaking off glaciers at Cape York, Greenland (photo by BrockenInaGlory)

Predictions of a future catastrophic rise in the oceans, threatening to drown many of the world’s biggest cities, are by now far from novel. Two other recent papers conclude that humanity has already committed itself to a six-meter rise in sea level because of the greenhouse gases already thrown into the atmosphere and the retention and later slow release of much of those gases by the world’s oceans. A study in the journal Science estimates that more than 444,000 square miles of land, where more than 375 million people live today, would be inundated by such a rise.

Compare that to the complacency of the world’s governments at the Paris Climate Summit in December 2015. Despite a thunder of plaudits from the corporate media, the governments committed themselves to goals that, even if achieved, would lead to a global temperature rise of nearly 3 degrees Celsius by 2100, with further increases beyond that. That is far beyond the goal of 1.5 degrees set at the summit. But even the summit’s actual modest goals are not necessarily attainable because peer pressure is the primary mechanism to induce compliance; there are no binding legal agreements.

Feedback loops accelerate ice-sheet melting

The Atmospheric Chemistry paper says that sea level was at times six to nine meters higher than today approximately 115,000 years ago when the average global temperature “probably was only a few tenths of a degree warmer than today.” Ice-sheet stability may be a key to understanding rapid sea-level rise, the authors write.

The injection of added freshwater into the oceans from faster ice-sheet melting reduces the mixing of ocean waters, causing warmer water to remain at lower depths and thus making warmer water more available to melt the remaining ice shelves. This additional impact of meltwater on the global climate and its feedbacks had not been appreciated before, the authors write. They summarize this as follows:

“Our principal finding concerns the effect of meltwater on stratification of the high-latitude ocean and resulting ocean heat sequestration that leads to melting of ice shelves and catastrophic ice sheet collapse. Stratification contrasts with homogenization. Winter conditions on parts of the North Atlantic Ocean and around the edges of Antarctica normally produce cold, salty water that is dense enough to sink to the deep ocean, thus stirring and tending to homogenize the water column. Injection of fresh meltwater reduces the density of the upper ocean wind-stirred mixed layer, thus reducing the rate at which cold surface water sinks in winter at high latitudes.”

Existing models, including the authors’ own, underplays this mixing effect, the paper states, and thus anthropogenic warming “may be even more imminent than in our model.” Regardless of the exact timing, a tipping point will be reached:

“If the ocean continues to accumulate heat and increase melting of marine-terminating ice shelves of Antarctica and Greenland, a point will be reached at which it is impossible to avoid large-scale ice sheet disintegration with sea level rise of at least several meters. The economic and social cost of losing functionality of all coastal cities is practically incalculable.”

What might happen if the global temperature rises 2 degrees C. from pre-industrial levels? The possibilities are:

“Continued high fossil fuel emissions this century are predicted to yield (1) cooling of the Southern Ocean, especially in the Western Hemisphere; (2) slowing of the Southern Ocean overturning circulation, warming of the ice shelves, and growing ice sheet mass loss; (3) slowdown and eventual shutdown of the Atlantic overturning circulation with cooling of the North Atlantic region; (4) increasingly powerful storms; and (5) non-linearly growing sea level rise, reaching several meters over a timescale of 50–150 years. These predictions, especially the cooling in the Southern Ocean and North Atlantic with markedly reduced warming or even cooling in Europe, differ fundamentally from existing climate change assessments.”

A cold and arid Europe

The authors cite evidence that at the end of the interglacial period in which sea level was believed to be six to nine meters higher than today, there was a dramatic cooling in northern Europe, estimated at 3 degrees C. in summer and 5 to 10 degrees in winter in southern Germany, accompanied by four centuries of arid weather and a decline in trees. During the period of sea-level rise, the North Atlantic is also believed to have suffered from more severe storms, with archeological evidence from Bermuda and the Bahamas used as evidence.

Atmospheric carbon dioxide levels for the past 800,000 years (Graphic by the Scripps Institution of Oceanography at the University of California, San Diego)

Atmospheric carbon dioxide levels for the past 800,000 years (Graphic by the Scripps Institution of Oceanography at the University of California, San Diego)

As a consensus for global warming emerges, there is less certainty that capping global temperature increase at 2 degrees would be “safe”; thus the Paris Climate Summit’s surprise conclusion to set a goal of a 1.5-degree limit. To achieve such a goal, however, would, as noted above, require cuts to greenhouse-gas emissions far beyond anything pledged. The studies indicating that humanity has already committed itself to a six- to nine-meter sea-level rise imply that temperatures will rise past 1.5 degrees as greenhouse gas-generated heat trapped by the oceans is slowly released into the atmosphere over many decades, if not centuries.

There is no alternative to a massive change to industrial activity — no amount of re-forestation can come close to canceling out the effect of industrial activity.

The Atmospheric Chemistry paper concludes with this sober assessment:

“There is a possibility, a real danger, that we will hand young people and future generations a climate system that is practically out of their control. We conclude that the message our climate science delivers to society, policymakers, and the public alike is this: we have a global emergency. Fossil fuel CO2 emissions should be reduced as rapidly as practical.”

Unfortunately, we live in an economic system that requires constant growth and offers no alternative work for those whose jobs would be eliminated were we to shut down the most polluting industries. In one of his novels, Arthur C. Clarke wrote of a 23rd century world that was finally eliminating the clutter and pollution of the 20th century. Sad to say, the late science fiction master was overly optimistic.

Could an economic collapse be in our near future?

Climate scientists and others have in the past few years issued a steady stream of analyses showing that without immediate remedial actions, a disastrous future is headed our way. But is it a four-decade-old study that will prove prescient?

That study, issued in the 1972 book The Limits to Growth, forecast that industrial output would decline early in the 21st century, followed quickly by a rise in death rates due to reduced provision of services and food that would lead to a dramatic decline in world population. To be specific, per capita industrial output was forecast to decline “precipitously” starting in about 2015.

Well, here we are. Despite years of stagnation following the worst economic crash since the Great Depression, things have not gotten that bad. At least not yet. Although the original authors of The Limits to Growth, led by Donella Meadows, caution against tying their predictions too tightly to a specific year, the actual trends of the past four decades are not far off from the what was predicted by the study’s models. A recent paper examining the original 1972 study goes so far as to say that the study’s predictions are well on course to being borne out.

Sunset at a cement factory (photo by Stefan Wernli)

Sunset at a cement factory (photo by Stefan Wernli)

That research paper, prepared by a University of Melbourne scientist, Graham Turner, is unambiguously titled “Is Global Collapse Imminent?” As you might guess from the title, Dr. Turner is not terribly optimistic.

He is merely the latest researcher to sound alarm bells. Just last month, a revised paper by 19 climate scientists led by James Hansen demonstrates that continued greenhouse-gas emissions will lead to a sea-level rise of several meters in as few as 50 years, increasingly powerful storms and rapid cooling in Europe. Two other recent papers calculate that humanity has already committed itself to a six-meter rise in sea level and a separate group of 18 scientists demonstrated in their study that Earth is crossing multiple points of no return. All the while, governments cling to the idea that “green capitalism” will magically pull humanity out of the frying pan.

Four decades of ‘business as usual’

At least global warming is acknowledged today, even if the world’s governments prescriptions thus far are woefully inadequate. In 1972, the message of The Limits to Growth was far from welcome and widely ridiculed. Adjusting parameters to test various possibilities, the authors ran a dozen scenarios in a global model of the environment and economy, and found that “overshoot and collapse” was inevitable with continued “business as usual”; that is, without significant changes to economic activity. Needless to say, such changes have not occurred.

In the “business as usual” model, the capital needed to extract harder-to-reach resources becomes sufficiently high that other needs for investment are starved at the same time that resources begin to become depleted. Industrial output would begin to decline about 2015, but pollution would continue to increase and fewer inputs would be available for agriculture, resulting in declining food production. Coupled with declines in services such as health and education due to insufficient capital, the death rate begins to rise in 2020 and world population declines at a rate of about half a billion per decade from 2030. According to Dr. Turner:

“The World3 model simulated a stock of non-renewable as well as renewable resources. The function of renewable resources in World3, such as agricultural land and the trees, could erode as a result of economic activity, but they could also recover their function if deliberate action was taken or harmful activity reduced. The rate of recovery relative to rates of degradation affects when thresholds or limits are exceeded as well as the magnitude of any potential collapse.”

The World3 computer model simulated interactions within and between population, industrial capital, pollution, agricultural systems and non-renewable resources, set up to capture positive and negative feedback loops. Dr. Turner writes that changing parameters merely delays collapse. The current boom in fracking natural gas and the extraction of petroleum products from tar sands weren’t anticipated in the 1970s, but the expansion of new technologies to exploit resources pushes back the collapse “one to two decades” but “when it occurs the speed of decline is even greater.”

Turner collapse chartSo how much stock should we put in a study more than 40 years old? Dr. Turner asserts that actual environmental, economic and population measurements in the intervening years “aligns strongly” to what the Limits to Growth model expected from its “business as usual” run. He writes:

“[T]he observed industrial output per capita illustrates a slowing rate of growth that is consistent with the [business as usual scenario] reaching a peak. In this scenario, the industrial output per capita begins a substantial reversal and decline at about 2015. Observed food per capita is broadly in keeping with the [Limits to Growth business as usual scenario], with food supply increasing only marginally faster than population. Literacy rates show a saturating growth trend, while electricity generation per capita … grows more rapidly and in better agreement with the [Limits to Growth] model.”

Peak oil and difficult economics

Rising energy costs following global peak oil will make much of the remaining stock uneconomical to exploit. This is a critical forcing point in the collapse scenario. And as more energy is required to extract resources that are more difficult to exploit, the net energy from production continues to fall. John Michael Greer, a writer on peak oil, observes that, just as it takes more energy to produce a steel product than it did a century ago due to the lower quality of iron ore today, more energy is required to produce energy today.

Net energy from oil production has vastly shrunken over the years, Mr. Greer writes:

“[T]the sort of shallow wells that built the US oil industry has a net energy of anything up to 200 to 1: in other words, less than a quart out of each 42-gallon barrel of oil goes to paying off the energy cost of extraction, and the rest is pure profit. … As you slide down the grades of hydrocarbon goo, though, that pleasant equation gets replaced by figures considerably less genial. Your average barrel of oil from a conventional US oilfield today has a net energy around 30 to 1. … The surge of new petroleum that hit the oil market just in time to help drive the current crash of oil prices, though, didn’t come from 30-to-1 conventional oil wells. … What produced the surge this time was a mix of tar sands and hydrofractured shales, which are a very, very long way down the goo curve. …

“The real difficulty with the goo you get from tar sands and hydrofractured shales is that you have to put a lot more energy into getting each [barrel of oil equivalent] of energy out of the ground and into usable condition than you do with conventional crude oil. The exact figures are a matter of dispute, and factoring in every energy input is a fiendishly difficult process, but it’s certainly much less than 30 to 1—and credible estimates put the net energy of tar sands and hydrofractured shales well down into single digits. Now ask yourself this: where is the energy that has to be put into the extraction process coming from? The answer, of course, is that it’s coming out of the same global energy supply to which tar sands and hydrofractured shales are supposedly contributing.”

It is that declining energy availability and greater expense that is the tipping point, Dr. Turner argues:

“Contemporary research into the energy required to extract and supply a unit of energy from oil shows that the inputs have increased by almost an order of magnitude. It does not matter how big the resource stock is if it cannot be extracted fast enough or other scarce inputs needed elsewhere in the economy are consumed in the extraction. Oil and gas optimists note that extracting unconventional fuels is only economic above an oil price somewhere in the vicinity of US$70 per barrel. They readily acknowledge that the age of cheap oil is over, without apparently realising that expensive fuels are a sign of constraints on extraction rates and inputs needed. It is these constraints which lead to the collapse in the [Limits to Growth] modelling of the [business as usual] scenario.”

New oil is dirty oil

The current plunge in oil and gas prices will not be permanent. Speculation on why Saudi Arabia, by far the world’s biggest oil exporter, continues to furiously pump out oil as fast as it can despite the collapse in pricing frequently centers on speculation that the Saudis’ pumping costs are lower than elsewhere and thus can sustain low prices while driving out competitors who must operate in the red at such prices.

If this scenario pans out, a shortage of oil will eventually materialize, driving the price up again. But the difficult economics will not have disappeared; all the easy sources of petroleum have long since been tapped. And the sources for the recent boom — tar sands and fracking — are heavy contributors to global warming, another looming danger. The case for catastrophic climate disruption due to global warming is far better understood today than it was in 1972 — and we are already experiencing its effects.

Dr. Turner, noting with understatement that these gigantic global problems “have been met with considerable resistance from powerful societal forces,” concludes:

“A challenging lesson from the [Limits to Growth] scenarios is that global environmental issues are typically intertwined and should not be treated as isolated problems. Another lesson is the importance of taking pre-emptive action well ahead of problems becoming entrenched. Regrettably, the alignment of data trends with the [Limits to Growth] dynamics indicates that the early stages of collapse could occur within a decade, or might even be underway. This suggests, from a rational risk-based perspective, that we have squandered the past decades, and that preparing for a collapsing global system could be even more important than trying to avoid collapse.”

Sobering indeed. Left unsaid (and, as always, there is no criticism intended in noting a research paper not going outside its parameters) is why so little has been done to head off a looming global catastrophe. Free of constraints, it is not difficult to quantify those “powerful societal forces” as the biggest industrialists and financiers in the world capitalist system. As long as we have an economic system that allows private capital to accumulate without limit on a finite planet, and externalize the costs, in a system that requires endless growth, there is no real prospect of making the drastic changes necessary to head off a very painful future.

Just because a study was conducted decades in the past does not mean we can’t learn from it, even with a measure of skepticism toward peak-oil fast-collapse scenarios. If we reach still further back in time, Rosa Luxemburg’s words haunt us still: Socialism or barbarism.

Trump is a Republican, but is he a fascist?

It’s hard not to chuckle at the hand-wringing going on within the Republican Party. That terrible Donald Trump: How dare he say openly what we only say in code! And, why, Republican candidates have never stooped to exploiting fears and pandering to racism and nativism.

Uh-huh. Richard Nixon attempted to provide federal money for segregated schools as he ushered in the Republican Party’s “Southern strategy”; Ronald Reagan famously opened his 1980 presidential run close to the site where three Civil Rights Movement workers were murdered in Mississippi with calls for “states’ rights,” well understood code words for supporting racially biased policies; George H.W. Bush exploited racial stereotypes with his Willie Horton campaign ads; George W. Bush’s presidency will be remembered for his callous ignoring of New Orleans and its African-American population in the aftermath of Hurricane Katrina; and the roster of Republicans hostile to civil rights is too long to list.

So does Donald Trump really represent something new and frightful? Or does his campaign represent the same-old, same-old in more concentrated form? Or, to put the second question in a different way, does he represent a new manifestation of fascism, as many are already proclaiming.

A rally against Donald Trump in New York City on March 19, organized by the Cosmopolitan Antifascists

A rally against Donald Trump in New York City on March 19, organized by the Cosmopolitan Antifascists

Perhaps it might be best to see the Trump campaign as constituting the seeds for a potential fascist movement rather than a fully fledged fascism. That ought to be scary enough, and enough for all of us to make a stand against it.

Fascism is a specific phenomenon, and we should not loosely throw the word around, as if it means anything with a whiff of authoritarianism that we do not like.

At its most basic level, fascism is a dictatorship established through and maintained with terror on behalf of big business. It has a social base, which provides the support and the terror squads, but which is badly misled since the fascist dictatorship operates decisively against the interest of its social base. Militarism, extreme nationalism, the creation of enemies and scapegoats, and, perhaps the most critical component, a rabid propaganda that intentionally raises panic and hate while disguising its true nature and intentions under the cover of a phony populism, are among the necessary elements.

We often think of fascism in the classical 1930s form, of Nazis goose-stepping or the street violence of Benito Mussolini’s followers. But it took somewhat different forms later in the 20th century, being instituted through military dictatorships in Chile and Argentina. Any fascism that might arise in the U.S. would be wrapped in right-wing populism and, given the particular social constructs there, that populism would include demands to “return to the Constitution” and “secure the borders.”

The Trump campaign’s ongoing violence

There is no shortage of peans to the Constitution or demands for border sealing, true enough, and violence has not been missing from the Trump campaign — to the contrary, the Republican front-runner has been reveling in it. Watching videos stringing together some of these incidents is sobering.

It’s been said over and over again that Germans didn’t think Hitler could ever take power (although he was never elected; he was appointed chancellor by President Paul von Hindenburg). Let’s set aside that all too easy comparison. Instead, it would be more pertinent to look back to the 1980 U.S. presidential campaign that culminated in a lurch to the right. That was the first one I could vote in. Many people thought Ronald Reagan would never be elected; voters in the end would recoil from his extremism. I was one of those doubters. To this day I remember the chill of horror that ran down my back when I first saw the electoral results, well into the evening, as a television announcer called the latest state to go his way part of a “tidal wave.”

In a year in which even the Democratic primary front-runner, Hillary Clinton, eagerly white-washes President Reagan’s actual history, we should correct the record. To only scratch the surface, he lavishly funded and supported the governments of Guatemala and El Salvador in their terror campaigns against their population through military units and death squads that killed hundreds of thousands; waged war against Nicaragua, mining harbors and funding and directing terrorism through the Contras; opposed civil rights legislation at every opportunity; cut Medicaid, Medicare, school breakfast and lunch programs, and declared ketchup a vegetable for school lunches; refused to lift a finger as AIDS ravaged communities across the country because homosexuals where seen as deserving their fate; and invented preposterous stories of pink-Cadillac-driving “welfare queens” raking in $150,000 per year.

There is a straight line from Reagan, whom the Republican establishment still venerates through a rather creepy personality cult, to Donald Trump. And Mr. Trump isn’t necessarily the scariest or most extreme candidate out there — Ted Cruz, determined to become the second Joe McCarthy, holds that distinction. But Senator Cruz, however much he lusts for a Medieval theological dictatorship and despite the frightening ignorance of his supporters, doesn’t command a following the way that Mr. Trump does.

The culmination of Republican pandering

He’s the front-runner precisely because he says it straight out rather than using code like other Republican candidates. He’s the logical product of 36 years of Republican pandering — half a century if we go back to Richard Nixon’s “Southern strategy.” Or, really, a continuation, if in new packaging, of the whole history of the United States. If he were just another in a long line of demagogues, we would not be throwing around the word “fascism” so freely. But the Trump campaign comes with violence and particularly open hatreds. Alarm bells ought to be ringing.

Let’s return to the definition of fascism offered above: “A dictatorship established through and maintained with terror on behalf of big business.” Industrialists and financiers are firmly in the saddle in the United States. Opposition to the policies there that have created widespread misery and towering inequality certainly is growing not only in intensity but in numbers, yet it could hardly be said that capitalist rule in the U.S. is in any danger whatsoever today. There is no need for capitalists to create and build a corps of street thugs or brown shirts.

Rather, we have the odd phenomenon of a billionaire “populist” telling his followers that he won’t be beholden to corporate interests because he is too rich to be bought. We have seen this siren song before: Silvio Berlusconi, Italy’s morbid combination of George W. Bush, Rupert Murdoch and Ross Perot. He did not work out so well for Italy. Prime Minister Berlusconi’s reason to run for office was to advance his business interests and stay out of jail. Promoting his business interests is Donald Trump’s motivation. All we have here is a billionaire cutting out the middle man and buying the office for himself instead of buying a professional politician.

Nonetheless, it is impossible not to note the violence and the threats against Mexicans, immigrants, Muslims and, implicitly, to all People of Color, and to social activists of the Left. Any Right-wing movement that has gained a substantial following of people that includes more than a few willing to condone violence must target the Left. History is painfully clear on this. We need not think Trump is a fascist or capable of building a fascist type of movement to mobilize against his campaign. Not that we should minimize the ultimate threat of fascism — all capitalist countries contain the potentiality of fascism, a threat that materializes when capitalists dispense with democracy because they can no longer earn profits in the ordinary ways and working people begin to refuse to cooperate with capitalist business as usual in significant numbers.

I would argue that the Trump campaign is not necessarily fascist today, but that it carries with it the seeds of a future, potential fascist movement. That is more than serious enough for everybody who struggles for a better world.

New right-wing government cedes Argentina’s sovereignty to Wall Street

Argentina’s new right-wing president, Mauricio Macri, pledged to put an end to the country’s sovereignty, and on that he has been true to his word. The capitalist principal that windfall profits for speculators is the raison d’état for the world’s governments has been upheld.

Or, to put it in a different way, the government of Argentina will again be allowed to borrow on international financial markets — so that it can borrow money for the sole purpose of paying billions of dollars to speculators.

Argentina had been one of the few countries that refused to bleed its population to pay off odious debt under the 12-year husband and wife rule of Néstor Kirchner and Cristina Fernández. 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. The election of the right-wing President Macri has put an end to that, along with his introducing the repression that austerity requires.

Entre Rios province, Argentina (photo by Felipe Gonzalez)

Entre Rios province, Argentina (photo by Felipe Gonzalez)

Argentina’s difficulties have a long history. The fascistic military dictatorship of 1976 to 1983 laid waste to the Argentine economy while unleashing horrific human rights abuses, and subsequent civilian governments sold off state enterprises at fire-sale prices while imposing austerity until the economy crashed at the end of 2001. Upon assuming office, President Kirchner suspended debt payments that would have impoverished the country. He offered to negotiate with bond holders, 93 percent of whom ultimately agreed to accept 30 percent of their bonds’ face value.

There were holdouts, most notably two hedge funds that waged a 15-year battle to extract the full value of the bonds, even though they bought them from the original holders for a fraction of the price. These two funds leading the holdouts were NML Capital, a subsidiary of Paul Singer’s Elliot Capital Management, and another hedge fund, Aurelius Capital Management. Mr. Singer, the type of character for which the term “vulture capitalist” was coined, is notorious for his scorched-earth tactics. At different points, he had an Argentine naval training ship seized in Ghana and attempted to seize Argentina’s presidential plane. His dedication to extracting every possible dollar regardless of cost to others was nicely summarized in 2011 by investigative journalist Greg Palast:

“Singer’s modus operandi is to find some forgotten tiny debt owed by a very poor nation (Peru and Congo were on his menu). He waits for the United States and European taxpayers to forgive the poor nations’ debts, then waits a bit longer for offers of food aid, medicine and investment loans. Then Singer pounces, legally grabbing at every resource and all the money going to the desperate country. Trade stops, funds freeze and an entire economy is effectively held hostage.

Singer then demands aid-giving nations pay monstrous ransoms to let trade resume. … Singer demanded $400 million from the Congo for a debt he picked up for less than $10 million. If he doesn’t get his 4,000 percent profit, he can effectively starve the nation. I don’t mean that figuratively — I mean starve as in no food. In Congo-Brazzaville last year, one-fourth of all deaths of children under five were caused by malnutrition.”

Buy low, demand very high

He’ll make a windfall profit off Argentina as well. The “special master” who presided over negotiations between the holdouts and the Argentine government — a veteran corporate lawyer who specializes in representing financiers and banks opposed to regulation — announced that NML Capital, Aurelius Capital and two other big hedge funds will receive 75 percent of the full principal and interest demanded by the holdouts. How big of a profit will this be? Only the funds themselves know for certain, but the lowest public estimate is a profit of nearly 400 percent.

Even that lowest estimate likely understates the profit. Bloomberg News reports that Mr. Singer will be paid $2.3 billion, or close to four times the $617 million in principal his firm holds. But as he likely paid only a small fraction of that principal, his profit is likely far greater. A Columbia University researcher estimates that NML Capital will receive $620 million for a portion of bonds for which it paid $48 million in 2008. That’s nearly a 13-fold profit in six years! As former President Fernández remarked when refusing to pay anything more than the 30 percent to which the other bondholders agreed, “I don’t even think that in organized crime there is a return rate of 1,608 per cent in such a short time,” adding that Argentina would not “submit to such extortion.”

President Fernández was referring to the profit Mr. Singer would have reaped had she given in to his full demands. She was speaking in a national address following two U.S. Supreme Court decisions in 2014 that upheld U.S. District Judge Thomas Griesa’s ruling that Argentina is not allowed to continue to pay the bondholders who agreed to accept 30 percent (or “haircuts” in financial parlance) until it reached an agreement with the holdouts. The Supreme Court also ruled that federal courts in the U.S. can order sovereign countries to hand over information on their assets to speculators. In other words, U.S. law, wielded to generate windfall profits for the most greedy, was decreed to apply to other countries, as if they are not sovereign.

The Kirchner-Fernández governments refused to yield their country’s sovereignty, but President Macri took office promising to pay off the vulture capitalists. Not only was Argentina’s ability to determine its own policy at risk, but the very concept of debt relief has been put in danger. The bondholders who agreed to take 30 percent made the calculation that something is better than nothing, and it enabled Argentina to recover from a severe economic crisis. The Kirchner-Fernández governments consistently offered the same deal to the holdouts. But now that the holdouts extracted so much more, will those who accepted the earlier deal now demand the same 75 percent given to the holdout funds? If they do, will they seek to enforce that after-the-fact better deal in the courtroom of Judge Griesa, who consistently showed himself biased in favor of the vulture capitalists?

Consider the assessment of two United Nations officials, Juan Pablo Bohoslavsky, the U.N. independent expert on the effects of foreign debt on human rights, and Alfred de Zayas, the the independent expert on the promotion of a democratic and equitable international order:

“A settlement would validate the type of predatory litigation that has been on the increase during the last decade. Such deals will make it more difficult to solve debt crises in a fair, timely and efficient manner by emboldening and rewarding the behavior of those who refuse to participate in debt restructuring efforts. These are no good news for attempts to solve debt crises in a timely and human rights sensitive manner.”

Paying debt through taking on more debt

The Macri government has now committed itself to paying $6.4 billion to the holdouts. How will it pay for that? By borrowing. Argentina had been blocked from borrowing in international credit markets, and as part of the deal will be allowed to borrow in those markets again. Judge Griesa’s injunction against resuming payments to the 93 percent of bondholders is also to be lifted. (That was enforceable because Argentina paid its debts to those bondholders through the Bank of New York, which was prohibited by the judge to pass through those payments under pain of legal penalties. Alternative routes through non-U.S. banks are difficult to use because of U.S. control over the global financial system.)

The deal also requires that the Argentine parliament reverse a law that blocks the country from offering any deal to holdouts better than terms agreed to by others. President Macri’s Let’s Change bloc does not hold a majority in the Chamber of Deputies, but picked up votes from the Peronist opposition to effect the necessary legal reversal this week. The Senate must still vote, but the expectation has been that the bill would have an easier time there.

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

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

Why is President Macri ceding his country’s sovereignty? Right-wing ideology of course plays a significant role here, but it is also self-interest. While the military dictatorship was conducting a reign of terror against Argentines that ultimately led to hundreds of thousands murdered, “disappeared,” tortured, kidnapped, arrested or forced to flee into exile, Mauricio Macri and his family were adding to their wealth. (Remember that this régime had the approval of Henry Kissinger and was blessed by David Rockefeller, whose loans financed it, with his infamous statement that “I have the impression that Argentina has a regime which understands the private enterprise system.”)

The Macri Society, or Socma, the family business, had close ties to the dictatorship. TeleSUR English reports that Socma “directly benefited” from the dictatorship:

“In 1973, prior to the 1976 military coup that ousted the civilian Peronist government of President Maria Estela de Peron and installed a dictatorship, Socma owned seven companies. When the dictatorship ended 10 years later, in 1983, the Socma corporate empire had expanded to 46 companies. Among Socma’s dozens of companies were various businesses that benefited the Macri family economically by providing services to the dictatorship regime.”

The new president, a director of the family conglomerate from a young age, is opposed to an Argentine parliamentary decision to launch an investigation of people and businesses that participated in the military dictatorship’s crimes, TeleSUR reports. La Nacion, a conservative Buenos Aires newspaper that backed President Macri, the day after the election published an editorial calling for an end of efforts to seek justice for the dictatorship’s victims, denouncing the quest for justice as a “culture of revenge.” Perhaps to emphasize this, the president has appointed as the new secretary for religious affairs Santiago Manuel de Estrada, who served as secretary for social security during the military dictatorship, which presided over severe reductions in wages and living conditions to go along with its death squads and torture facilities.

A monopoly for press backers, repression for opponents

Argentina’s biggest media conglomerate, Clarín, also backs President Macri, and no wonder: He has already moved to eliminate Argentina’s anti-monopoly law, which restricts the number of TV, cable and radio licenses a company can hold at one time, so that a handful of corporations can completely control the mass media. Such laws have precedent; for example, U.S. communications law long restricted anyone from owning more than 14 radio stations and seven television stations until overturned during the Reagan era. The Macri government is moving swiftly to silence opposition — it has forced a popular radio broadcaster, Victor Morales, off the air. According to the Buenos Aires Herald:

“ ‘I’m being kicked out because this company needs government advertising … No radio in Argentina can survive without government ads. They can’t mess with Macri,’ said the journalist.”

Demonstrations against these developments have already taken place, as have a public-sector strike against massive layoffs, demonstrations against the new government’s anti-protest law and protests against the imprisonment of Indigenous leader Milagro Sala. A total of 25,000 public workers have been dismissed as part of the Macri government’s austerity policies, and a new “security protocol” enables indiscriminate arrests and restricts the press’ ability to cover such events, opponents say. A coalition organizing against these new repressive policies states:

“The new protocol implies that every protest is now a criminal offense, and empowers the Security Forces — the same forces that played an active role in Argentina’s last military dictatorship — to allow or forbid any protests. The criminalization of protests violates several judicial decisions that state the right to demonstrate supersedes any occasional traffic problems that may be caused.

This year, on the 40th anniversary of the military coup in Argentina, the Mauricio Macri government has begun a campaign to eliminate an essential human right — the fundamental right to protest and demonstrate. With this new protocol, the government will try to prevent workers from protesting against redundancies or demanding salary increases, or mobilize against power outages and mining projects. This protocol openly defies the constitutional rights of the Argentine people as well as international treaties on human rights.”

Ms. Sala, imprisoned for the past two months, was arrested after protesting the policies of a provincial governor aligned with the president. She was acting in support of an organization she heads that provides social services. Parliamentarians, civil organizations and human rights campaigners across South America have denounced her arrest as political, and the United Nations has called for an explanation of her continued detention. The Buenos Aires Provincial Commission for Memory has issued this statement:

“Organizing collective action does not mean ‘inciting crimes,’ a massive demonstration is not ‘public disturbance’ and to oppose a government decision is not ‘an act of sedition.’ They are all democratic freedoms.”

They should be. But not when a right-wing government is determined to impose the rule of capital, or, in the case of the Macri government, to be a willing subaltern of international capital. The logic of the rule of financiers can only lead to not only intensified austerity, but increased repression.