Look to U.S. executive suites, not Beijing, for why production is moved

The ongoing trade war between the United States and China, and the rhetoric surrounding it coming out of the White House, has served to reinforce the idea that China is “stealing” jobs from the United States. The reality, however, is that if we are seeking the responsible party, our attention should be directed toward U.S. corporate boardrooms.

The internal logic of capitalist development is driving the manic drive to move production to the locations with the most exploitable labor, not any single company, industry or country. For a long time, that location was China, although some production, particularly in textiles, is in the process of relocating to countries with still lower wages, such as Bangladesh, Cambodia and Vietnam. (The last of those is already a long-time source of highly exploited cheap labor for Nike.) It could be said that China is opportunistic in turning itself into the world’s sweatshop. And that it constitutes a colossal market is no small factor.

Beijing (photo by Picrazy2)

Low wages and the inability of Chinese workers to legally organize are crucial factors in the movement of production to China. The minimum wage in Shanghai is 2,420 renminbi per month, which equals US$349. Per month. And Shanghai’s minimum wage is the country’s highest rate and “roughly double the minimum wage in smaller cities” across China, reports the China Labour Bulletin. That does not translate into a living wage for Chinese workers. The Bulletin states:

“National government guidelines stipulate that the minimum wage should be at least 40 percent of the local average wage. In reality, the minimum wage is usually only between 20 and 35 percent of the average wage, barely enough to cover accommodation, transport and food costs. Workers on the minimum wage, including most production line workers, unskilled labourers, shop workers etc. have to rely on overtime, bonuses and subsidies in order to make a living wage. As a consequence, if the employer cancels or reduces overtime, bonuses and other benefits, low-paid workers will often demand immediate restoration.”

Even with such meager pay and the illegality of any unions other than the Communist Party-controlled and employer-friendly All-China Federation of Trade Unions, increasing numbers of employees are classified as “independent contractors,” making them even more precarious. Enforced overtime well in excess of the legal maximum, and employers demanding “flexible” working hours, are brutal on Chinese workers stuck in assembly jobs but lift corporate executives into ecstasy.

The leading culprit is headquartered in Arkansas

The single biggest culprit in the wholesale moving of jobs to China is to be found not in Beijing, but rather in Bentonville, Arkansas. Yep, Wal-Mart, the company that pays it employees so little that they skip meals and organize food drives; receives so many government subsidies that the public pays about $1 million per store in the United States; and is estimated to avoid $1 billion per year in U.S. taxes through its use of tax loopholes.

Other major United States retailers began procuring clothing items from Asian subcontractors before Wal-Mart, but the relentless drive to pay its suppliers as little as possible forced an acceleration in the shift of production to countries with the most exploitable populations. If a manufacturer wants to continue to have contracts to supply Wal-Mart, then it has no choice but to ship its operations overseas because it has no other way to meet Wal-Mart’s demands for ever lower prices.

By 2012, 80 percent of Wal-Mart’s suppliers were located in China. And because the company is so much bigger than any other retailer, it can dictate its terms. Gary Gereffi, a professor at Duke University, said in an interview broadcast on the PBS show Frontline that “No company has had the kind of economic power that Wal-Mart does, to be able to source products from around the world. … Wal-Mart is able to transfer whole U.S. industries to overseas economies.”

Beijing Opera House (photo by Petr Kraumann)

Because of its size and its innovation in computerizing its inventory and tightly managing its suppliers, coupled with its willingness to squeeze its suppliers to the exclusion of all other factors, Wal-Mart holds life or death power over manufacturers, Professor Gereffi said:

“Wal-Mart is telling its American suppliers that they have to meet lower price standards that Wal-Mart wants to impose. The implication of that in many cases is if you’re going to be able to supply Wal-Mart at the prices Wal-Mart wants, you have to go to China or other offshore locations that would permit you to produce at lower cost. … Wal-Mart’s giving them the clear signal that you can’t be a Wal-Mart supplier if you can’t produce at substantially lower prices. … You can go to China, or, in many cases, many U.S. suppliers can’t make that move, and they just go out of business, because Wal-Mart is the dominant company for many U.S. suppliers. If they can’t go offshore, those suppliers end up going out of business.”

Wal-Mart alone cost U.S. workers more than 400,000 jobs between 2001 and 2013, according to the Economic Policy Institute. That is a sizable fraction of the 3.2 million jobs that were lost in the U.S. due to trade relations with China.

To the best of my knowledge, however, no Chinese party or government official has ever walked into the headquarters of a U.S. corporation, pointed a gun at the CEO and demanded production be moved across the Pacific Ocean. Chinese business executives sometimes demand technology be shared in exchange for access to Chinese markets (a different matter), but executives from the U.S. or elsewhere do have the option of saying “no.” Even if we were to concede that there is some coercion in regards to technology transfers, there isn’t when it comes to moving production. That is a choice, a choice routinely made in executive suites.

It’s not a deficit for Apple

Competitors that wish to stay in business can be compelled by capitalist competition to make that choice, matching the “innovation” of the company that first finds moving production a way to cut costs and thus boost profitability. This applies to all industries, and not only low-tech ones. Apple, for example, accrues massive profits by contracting out its manufacturing to subcontractors. A 2010 paper by Yuqing Xing and Neal Detert found that Chinese workers are paid so little that they accounted for only $6.50 of the $168 total manufacturing cost of an iPhone. Of course iPhones cost a lot more than $168 — an extraordinary profit is generated for Apple executives and shareholders on the backs of Chinese workers.

A 2011 study led by Kenneth L. Kraemer calculated that $334 out of each iPhone sold at $549 went to the U.S. with almost the entire remainder distributed among component suppliers. Only $10 went to China as labor costs. Thus, despite the export of iPhones contributing heavily to the official U.S. trade deficit, the study said “the primary benefits go to the U.S. economy as Apple continues to keep most of its product design, software development, product management, marketing and other high-wage functions in the U.S.”

The profits flow to Apple headquarters (photo by Joe Ravi via license CC-BY-SA 3.0)

Chinese workers today likely account for somewhat more of the manufacturing cost as wages have risen in China over the past decade, but remain minuscule compared to wages in advanced capitalist countries. And the work endured is no vacation, as John Bellamy Foster and Robert W. McChesney noted in the February 2012 edition of Monthly Review:

“The eighty hour plus work weeks, the extreme pace of production, poor food and living conditions, etc., constitute working conditions and a level of compensation that cannot keep labor alive if continued for many years—it is therefore carried out by young workers who fall back on the land where they have use rights, the most important remaining legacy of the Chinese Revolution for the majority of the population. Yet, the sharp divergences between urban and rural incomes, the inability of most families to prosper simply by working the land, and the lack of sufficient commercial employment possibilities in the countryside all contribute to the constancy of the floating population, with the continual outflow of new migrants.”

The working conditions of China are not a secret; business-press commentaries can come close to celebrating such conditions. A 2018 commentary in Investopedia, for example, goes so far as to claim that manufacturing in the U.S. is “economically unfeasible” and then says this about Chinese conditions:

“Manufacturers in the West are expected to comply with certain basic guidelines with regards to child labor, involuntary labor, health and safety norms, wage and hour laws, and protection of the environment. Chinese factories are known for not following most of these laws and guidelines, even in a permissive regulatory environment. Chinese factories employ child labor, have long shift hours and the workers are not provided with compensation insurance. Some factories even have policies where the workers are paid once a year, a strategy to keep them from quitting before the year is out. Environmental protection laws are routinely ignored, thus Chinese factories cut down on waste management costs. According to a World Bank report in 2013, sixteen of the world’s top twenty most polluted cities are in China.”

The overall U.S.-China economic picture is more balanced

The components of the iPhone are sourced from several countries and are assembled in China. Because the final product is exported from China, Apple contributes to trade deficits, as conventionally calculated. But the lion’s share of the massive profits from this global supply chain are taken by Apple, a U.S.-based corporation. The profits from the actual assembly, outsourced to Foxconn, are accrued in Taiwan, Foxconn’s home. Apple’s arrangement is far from unique; the list of U.S. companies that manufacture in China is very long. If trade balances were calculated on the basis of where the profits are retained, the U.S. deficit with China would not be nearly so imposing.

As a commentary in the Financial Times points out, U.S. corporations sell far more goods and services in China than do Chinese companies in the U.S., but those sales are not counted toward trade balances. The commentary said:

In 2015, the last year for which official US statistics were available, US multinational subsidiaries based in China made a total of $221.9bn in sales to domestic consumers. The goods and services sold were produced by an army of 1.7m people employed by US subsidiaries in the country. By contrast, China’s corporate presence in the US remains small. Official figures on Chinese companies’ US subsidiary sales to American consumers do not exist, but analysts estimate they are hardly material when compared with China’s exports to the US. Thus, the US-China ‘aggregate economic relationship’ appears a lot more balanced than the trade deficit makes it look.”

A separate report, by VoxChina (which calls itself an independent, nonpartisan platform initiated by economists), calculates that although the official U.S. trade deficit with China for 2015 was $243 billion, when foreign direct investment (FDI) and sales by both countries’ companies in the other are included, the deficit was only $30 billion, and a U.S. surplus was forecast for following years. The U.S., incidentally, remains the world’s second-biggest exporter according to the latest World Trade Organization statistics.

The Trump administration continues to make a big show of blaming China for jobs being moved across the Pacific and for trade deficits, but although China is opportunistic, those vanishing jobs (and resulting deficits) are squarely the responsibility of the corporate executives who make the decision to shut down domestic operations. This dynamic is part of the larger trend toward so-called “free trade” — as technology and faster transportation make moving production around the world more feasible, the corporations taking advantage of these trends seek to eliminate any barriers to cross-border commerce.

And as the race to the bottom continues —  as relentless competition induces a never-ending search to find locations with ever lower wages and ever lower health, safety, labor and environmental standards — what regulations remain are targets to be eliminated. Thus we have the specter of “free trade” agreements that have little to do with trade and much to do with eliminating the ability of governments to regulate. And as the whip of financial markets demand ever bigger profits at any cost, no corporation, not even Wal-Mart, can go far enough.

Despite being a leader in cutting wages, ruthless behavior toward its employees and massive profitability, when Wal-Mart bowed to public pressure in 2015 and announced it would raise its minimum pay to $9 an hour, Wall Street financiers angrily drove down the stock price by a third. Wal-Mart reported net income of $61 billion over the past five years, so it does appear the retailer will remain a going concern. Apple reported net income of $246 billion over the past five years, so outsourcing production to China seems to have worked out for it as well.

The Trump administration’s trade wars are so much huffing and puffing. Empty public rhetoric aside, Trump administration policy on trade, consistent with its all-out war on working people, is to elevate corporate power. Nationalism is a convenient cover to obscure the most extreme anti-worker U.S. administration yet seen. Class war rages on, in the usual one-sided manner.

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Big corporations pay no income tax, unlike you

Telling you that Donald Trump lied, or that the one percent continue to succeed in their incessant class warfare, ranks in the astonishment department with being told the Sun rose in the east this morning. Do we really need more evidence?

Necessary or not, more evidence continues to be delivered. The latest delivery comes courtesy of the Institute on Taxation and Economic Policy, which has found that 60 of the largest corporations in the United States paid no income taxes for 2018 despite earning a composite $79 billion in net income. Worse, these companies actually received $4.3 billion in tax rebates.

Had these companies paid taxes at the newly reduced corporate tax rate of 21 percent, these companies would have paid $16.4 billion in taxes. So we have a difference of more than $20 billion — quite a nice return on their lobbying expenses and donations to the Trump campaign.

Heading the list is none other than Amazon. Run by the world’s richest person and recently extracting billions of dollars in subsidies in a sweepstakes in which cities across the United States competed to give away the most money, Amazon racked up $11 billion in profits last year and not only paid no taxes but received a rebate of $129 million. A total of 26 companies, including Chevron, Delta Air Lines, Duke Energy, General Motors, Molson Coors and Prudential Financial, reported net income of more than $1 billion while paying no taxes.

Occupy Seattle rally at Westlake Park (photo by Joe Mabel)

President Trump claimed that his massive tax cuts for corporations would directly result in the average United States household getting an annual increase of $4,000 in wages. That magical figure came from his own Council of Economic Advisers, which further claimed that the $4,000 was a “conservative” estimate. The Council went on to claim that the average U.S. household might see a raise of $9,000.

The web site FactCheck.org, noting that the Council never said how it arrived at these magical figures, used old-fashioned math to reveal the lack of reality here. The site’s analysis of the purported $9,000 raise concluded: “That would amount to a $1.1 trillion annual income gain from simply reducing a corporate tax burden that is currently only $297 billion.”

Still waiting for that extra $4,000 in your paycheck, aren’t you?

Don’t hold your breath

Wages actually fell two percent, adjusted for inflation, from December 2017 to December 2018, reports the Economic Policy Institute. But it would have been fruitless to wait for the promised largesse. The Communications Workers of America made a gallant effort to get commitments for corporations to pass on the tax savings to their workers, to no avail, the Center For Public Integrity reports:

“Corporations balked at saying tax cuts would lead to higher wages because they didn’t want to be bound to a promise to increase pay, a lobbyist for the companies said. When the White House’s Council of Economic Advisers predicted hat a 20 percent corporate rate would hike average annual household income by $4,000, the Communications Workers of America, a 700,000-member union, asked eight major corporations to pledge to hike worker wages by $4,000 if they got the tax cut. The companies didn’t respond. That ‘shows you the difficulty they have, and not only in messaging but also why people don’t like them,’ said one lobbyist who asked to remain anonymous so as to be able to speak freely.”

This sort of class warfare is not new — wages around the world have fallen far below productivity gains over the past three decades, pay inequality has reached gigantic proportions and corporations have showered speculators with so much money that in some recent years the total of money paid to them in dividends and stock buybacks exceeded net income.

The Trump administration, however, has intensified these trends. Worldwide, financiers pocketed an astounding US$1.37 trillion in dividends for 2018, a total that has nearly doubled in less than a decade, and is predicted to be even bigger in 2019. Stock buybacks in the U.S. alone accounted for another $1.1 trillion last year. Putting their chief executive officer colleagues to shame, the top 25 “earners” among hedge-fund managers paid themselves a composite $15.4 billion in 2017, with four of them raking in more than $1 billion each.

In contrast, six percent of the tax cuts given to corporations went to employees in increased wages and in bonuses, while more than half went directly to stock holders.

The costs of poverty

This ever-mounting inequality has real costs. For example, almost 13 million children in the United States (20 percent of the country’s children) live in poverty. The Children’s Defense Fund pulls no punches in assessing the cost of that poverty:

“When we let millions of children grow up poor without basic necessities like food, housing and health care, we deny them equal opportunities to succeed in life and rob our nation of their future contributions. Poverty decreases a child’s chances of graduating from high school and increases her chances of becoming a poor adult. It makes her more likely to suffer illnesses and get caught in the criminal justice system. Beyond its human costs, child poverty has huge economic costs. Our nation loses about $700 billion a year due to lost productivity and increased health and crime costs stemming from child poverty.”

Don’t hold your breath waiting for the Trump administration to address any of these problems. Far from the magic fountains of money pouring into your paycheck and reductions to the federal budget deficit, the country’s accumulated debt is rising fast. The Congressional Budget Office estimates an additional $1.9 trillion will be added to the U.S. government’s budget deficit over the next 10 years thanks to a drastic decrease in corporate tax payments. For the first six months of fiscal year 2019 (which began with October 2018), corporate tax payments to the federal government declined $11 billion (a fall of 13 percent) compared to a year earlier, according to the Center For Public Integrity.

Bonuses as a share of compensation (graphic by the Economic Policy Institute)

How will this be paid for? Naturally, in cuts to the safety net. The Trump administration’s proposed budget for fiscal year 2020 calls for $845 billion in cuts to Medicare, $1.5 trillion in cuts to Medicaid and $84 billion in cuts to Social Security disability benefits. President Trump, you’ll recall, promised during his election campaign that he would make no cuts to those programs. Then again, what would we expect from a serial liar whose total of false statements since taking office has surpassed 10,000 — and who has a long history of failing to pay contractors who did work for his casinos and other businesses.

As historically weak as the so-called “recovery” from the 2008 economic collapse has been, all history points to the fact that we are now overdue for the next recession. Nor is the little bit of sugar high the U.S. economy received from the Trump tax cuts (in reality, a bump for the owners of capital but not those who work for a living) going to last.

In a CounterPunch commentary, economist Jack Rasmus explains that the rise in U.S. gross domestic product for the first quarter of 2018 was due to corporations building inventories to get ahead of the Trump tariffs and a temporary decline in imports (thus providing an artificial boost to the import-export ratio) stemming from the administration’s trade wars. Household consumption, the driver of the U.S. economy, is actually decreasing, Professor Rasmus said, which does not bode well for the future.

We are losing one of the most one-sided wars in human history.

Koch brothers take aim at Republican ‘moderation’ and the Constitution

The Republican Party isn’t extreme enough. So say the Koch brothers, who are threatening to withhold the $400 million they have promised to inject into the 2018 electoral cycle.

Members of the U.S. Congress have received their marching orders: Repeal the Affordable Care Act (in other words, replace “Obamacare” with “Trumpcare”) and lavish billionaires with massive tax cuts. A June “donor retreat” at a Koch brothers’ compound in Colorado was attended by 400 people, and the “price for admission for most was a pledge to give at least $100,000 this year to the Kochs’ broad policy and political network,”  The Guardian reported.

The Koch brothers are on record as committing up to $400 million on the next midterm elections, but such largesse is not without strings. The Guardian quoted the head of the Koch brothers’ political arm, Americans for Prosperity, Tim Phillips, as frustrated at the delays in extremist legislation getting through Congress. “There is urgency,” Phillips said. “We believe we have a window of about 12 months to get as much of it accomplished as possible before the 2018 elections grind policy to a halt.”

A Louisiana bayou devastated by a nearby natural gas operation (photo by John Messina for the U.S. Environmental Protection Agency)

As an example of what is expected to be done, one wealthy donor told the gathering that his “Dallas piggy bank” is closed for now. “Get Obamacare repealed and replaced, get tax reform passed. Get it done and we’ll open it back up,” he told The Guardian, adding that he has encouraged other wealthy donors to similarly withhold money until they get what they expect.

There really isn’t anything new here, other than it is unusual for any window to be opened into the secretive workings of Charles and David Koch’s networks. Their massive spending to buy Congress and state legislatures (they budgeted $900 million for the 2016 elections), their widespread funding of global-warming denialism, their willingness to destroy the environment in pursuit of endless profits, and their relentless focus on privatizing public assets are well known. Their Americans for Prosperity outfit was also a crucial funder for the corporate-sponsored Tea Party movement. Perhaps less known is that they are bankrolling an attempt to re-write the U.S. Constitution.

Amending the Constitution to suit themselves

There are two separate pushes for a constitutional convention. In a Truthout report, Alex Kotch writes:

“One would attempt to engineer a convention for a balanced budget amendment only, and the other tries to secure an open convention for the purpose of limiting the power and jurisdiction of the federal government. But once a convention is underway, all bets are off. The convention can write its own rules, resulting in a wide-open or ‘runaway’ convention that can make major changes to the constitution and, some argue, even change the number of states required to ratify those changes.”

Under U.S. law, if the legislatures of 34 states (two-thirds of the states) call for a constitutional convention, Congress is required to convene one. The balanced-budget resolution has been passed by 29 states, Truthout reports. Once a convention is convened, it can write its own proposals, including changing the number of states required to pass a constitutional amendment to make it easier for extreme corporate wish lists to be converted into permanent law. But even if only a balanced-budget amendment were to become part of the U.S. Constitution, such an amendment would enshrine harsher austerity with little or no recourse.

The Center on Budget and Policy Priorities puts this plain:

“By requiring a balanced budget every year, no matter the state of the economy, such an amendment would raise serious risks of tipping weak economies into recession and making recessions longer and deeper, causing very large job losses. That’s because the amendment would force policymakers to cut spending, raise taxes, or both just when the economy is weak or already in recession. … [T]he amendment would force policymakers to cut spending, raise taxes, or both. That would launch a vicious spiral of bad economic and fiscal policy: a weaker economy would lead to higher deficits, which would force policymakers to cut spending or raise taxes more, which would weaken the economy further.”

A detailed analysis by Macroeconomic Advisers estimates that, had a balanced-budget amendment been in place at the time of the 2008 economic crash, there would have been an additional 11 million people unemployed in 2012 and gross domestic product would have declined 12 percent that year. Because of the decline in tax revenue this would cause, an additional $500 billion would have been added to that year’s deficit, and coupled with the cuts in spending that would have mandated by such an amendment, U.S. government discretionary spending would have been reduced to zero. As in literally nothing.

The Koch brothers and their billionaire confederates would be doing just fine, however, and that’s all that matters. A web of Koch-funded organizations are funding and promoting these pushes for a constitutional convention.

Clean air and water? Who needs them?

Koch Industries is one of the country’s worst polluters of the air and water as well as a major source of greenhouse gases. Thus it comes as no surprise that Charles and David Koch, who operate the company, are also active funders of global-warming denialism, and the two stand to profit enormously from the Alberta tar sands. They own close to two million acres that, should that land be fully exploited, would throw another 19 billion metric tons of carbon emissions into the atmosphere. The International Forum on Globalization estimates that the Koch brothers stand to make more than one million times more than the average Keystone XL pipeline worker over the life of the pipeline, based on potential profits of $100 billion.

The Alberta tar sands (photo by Howl Arts Collective, Montréal)

The Koch brothers are major funders of the extremist American Legislative Exchange Council (ALEC) that writes legislation to benefit its corporate membership that is frequently passed by state legislators verbatim; and even attempted to take control of the Cato Institute, the far-right libertarian “think tank” that, despite agitating for the end of Social Security, was apparently not extreme enough for them.

Not content with control of Congress and state legislatures, David Koch donated $300,000 to U.S. Vice President Mike Pence’s gubernatorial bids, and Pence has dutifully denied global warming. A 2014 Politico article reported:

“A number of Pence’s former staffers from his days in Congress have assumed major roles in the brothers’ corporate and political spheres. And Americans for Prosperity, the Kochs’ top political group, has been holding up Pence’s work in Indiana as emblematic of a conservative reform agenda they’re trying to take nationwide. … Pence has worked to spotlight the fiscal issues that animate the Kochs’ political giving. People close to the brothers say he first earned their network’s admiration during the George W. Bush years, when he opposed what he deemed Big Government policies backed by his own party, including No Child Left Behind and a Medicare expansion, and repeatedly warned that the GOP was veering off course.”

As I have noted before, this is a lament that the Bush II/Cheney administration was too liberal!

National parks in the cross hairs

The Koch brothers’ extreme hostility to anything public — that is, anything that is not being exploited for corporate plunder — has gone so far as to oppose national parks. Unfortunately, this is not a joke. A Koch brothers-backed outfit calling itself the Property and Environment Research Center is advocating selling them. Reed Watson, the center’s executive director, argues that “land management agencies [should] turn a profit” by removing restrictions on timber and energy development.

To soft-peddle this extremism, the center calls for selling off other federal lands rather then openly advocating selling national parks — an immensely unpopular idea across the political spectrum — but that is where the logic of its extremism points. In a paper the center produced, “How and Why to Privatize Public Lands,” the group makes it intentions clear:

“Four criteria should guide reform efforts: land should be allocated to the highest-valued use; transaction costs should be kept to a minimum; there must be broad participation in the divestiture process; and ‘squatters’ rights’ should be protected. Unfortunately, the land reform proposals on the table today fail to meet some or all of those criteria. Accordingly, we offer a blueprint for auctioning off all public lands over 20 to 40 years.”

Note that it says “all” without qualification. Oil rigs and fracking operations instead of natural scenery for all to enjoy because it would be more profitable in the short term. This mindset has reached the highest level of government as exemplified by the Trump administration’s intentions to open federal lands to mining and oil extraction at fire-sale prices without oversight, or to sell them.

It’s not as if the Koch brothers don’t know where their next billion is coming from. Combined, the two are worth about $97 billion. Each is one of the nine richest people on Earth, and together the two possess more wealth than the world’s richest person, Bill Gates. They were worth $32 billion in 2009 — nearly tripling their fortune since the first year of the Obama administration.

This is all the product of libertarianism, a a philosophy of might makes right. A belief in complete freedom of commerce, of minimal government involvement in the economy or social affairs, is nothing less than allowing the “market” to determine economic and social outcomes. The logical outcome of this is no more minimum wage, no more Social Security, no more laws against discrimination in the workplace, no more safety rules, no more consumer-protection laws, no more environmental protection. This indeed is what libertarians preach, including the Koch brothers and Ron Paul.

Who is this individualistic “freedom” for? It is “freedom” for industrialists and financiers to rule over, control and exploit others. “Justice” becomes 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.

On an even playing field, the brutality of the programs put forth by the Koch brothers and their fellow libertarian billionaires wouldn’t pass the laugh test. But when you have hundreds of millions of dollars to throw around every two years, and an interlocking maze of organizations and “think tanks” to promote your self-serving agenda, you have the ability to make the most obscene ideas “mainstream.” On what basis should such one-sided power relations be considered democratic?

Pence as president could be worse than Trump

The thought of Donald Trump’s monstrous ego being swiftly turned out of office because of his incompetence and corruption can’t help but give us a warm feeling of schadenfreude. Yet contemplating his possible impeachment gives full meaning to the idea of being careful of what you wish.

The complicating factor here is that an impeachment and removal from office would elevate Christian fundamentalist Mike Pence to the presidency. That would be truly a horrifying development. Not only because Vice President Pence is more of a “true believer” in the extreme Right agenda than is President Trump but as an experienced legislator and governor, he’d likely be far more effective in steering bills through Congress.

With some of the most ideological Republicans in control of all three branches of government, and given that the Democratic Party has shown no sign whatsoever of learning from last year’s electoral debacle, hoping for relief from traditional politics seems even more hopeless than it is ordinarily. What to do? Even the ongoing campaign to “Refuse Fascism” by “driving out the Trump/Pence regime” has a controversial element to it. Although appropriately aimed at both while targeting the system that could elevate such horrors to the apex of political power, this sort of campaign spreads confusion by equating what is a particularly nasty manifestation of capitalist formal democracy with full fascism.

The Indiana Toll Road (photo by Georgi Banchev)

Let’s step back for a moment and remember a bit of history. In the last years of Weimar Germany, the Communist Party of Germany maintained a rigid sectarian line that focused its attacks not on the Nazis, but at Social Democracy. The Social Democrats were scorned as “social fascists,” and the coalition governments of Social Democrats and its moderate Right allies denounced as “objectively fascist” already. Instead of a united front against the Nazis, the only strategy that could have defeated Hitler before Hindenburg appointed him chancellor, energy was dissipated in sectarian sniping.

When the Nazis took power, they wasted no time rounding up Communists and Social Democrats, sending them to the first concentration camps. Of course, it was the Social Democrats who paved the road for the Nazis through their continual reliance on the right-wing death squads known as the “Free Corps” who would later became the seeds for Hitler’s storm troops.

The difference between a miserable, politically bankrupt bourgeois government and a fascist government was hammered home the hard way. Let us not make the same mistake now. Donald Trump’s ascension carries the seeds of a potential fascist movement but it is not actually fascist; thus far it is a conventional Republican administration in its policies, albeit one more extreme and incompetent than even the Bush II/Cheney administration. That is more than enough reason to organize with urgency, going beyond demonstrations to building organized movements. But if both Trump and Pence were removed from office before their terms were up, then House Speaker Paul Ryan would take office. Hardly an improvement!

The bar is mighty low indeed when Speaker Ryan, capable of little more than robotically repeating the lines he’s been fed by the Koch brothers, can, with a straight face by corporate-media commentators, be considered an “intellectual.” As the Green Party activist Paul Gilman jokes, “Ryan is considered an intellectual by Republicans because he’s read both of Ayn Rand’s novels.”

None of the foregoing in any way is an attempt to discourage the work of Refuse Fascism, or anybody else organizing against the Trump administration. We need more of this kind of work — especially work that targets capitalism instead of focusing on personalities. For our ability to limit the damage from the White House and its congressional enablers will depend on the intensity and effectiveness of our organizing.

A general in the Republican war on women

Circling back to Vice President Pence, it would be nearly impossible to overstate his extremism. In public speeches, he has said he is “a Christian, a conservative and a Republican in that order.” Like many evangelical Christians, he believes he has a right to impose his religious beliefs on everyone else, and as Indiana governor passed a law intended to do that. As a Daily Kos report put it:

“He has repeatedly claimed that he should make policies and pass laws that are in accordance with his faith. The evangelical church Mike Pence has been attending teaches that marriage is only between one man and one woman. The wife must be submissive to her husband. All women are expected to submit humbly to the teachings of Christian men.”

The church he attended in Indianapolis openly calls for a theocratic state, believing the Bible should be taken literally:

“We believe the Bible to be the verbally inspired Word of God, inerrant in the original manuscripts and the sufficient and final authority for all matters of faith, practice, and life.”

And this church asserts that not only should women be “deferential” to men and be “guided” toward marriage and away from a career, but that this applies to all women, whether or not church members. The Daily Kos article notes that a foundational book used by the church

“does not distinguish between conduct expected from women in voluntary marriages and unrelated women who may be members of another faith. This book teaches that preferences of women from different faiths (or no faith) are simply wrong and need to be corrected by the older women.”

And thus it is no surprise Vice President Pence would so distinguish himself for his crusades against women. As a member of Congress, he led fights to defund Planned Parenthood. Upon becoming Indiana governor, he cut Planned Parenthood funding by more than half and cut funding for domestic-violence programs. The slashing of funding for Planned Parenthood forced five non-abortion clinics that provided testing for sexually transmitted diseases to close, leading to an increase in HIV infections so severe that federal intervention was required. As the health crisis began to spiral out of control, local public health officials suggested using a needle exchange and harm-reduction program to combat it, but Pence refused, allowing the crisis to worsen.

Women’s March of January 21, 2017, in Chicago (photo by Jonathan Eyler-Werve)

As member of Congress, he co-sponsored a bill allowing hospitals to turn away women in need of life-saving abortions, and another bill that would have designated fertilized eggs as people with legal rights.

As governor, he signed into law a measure requiring fetal tissue from abortions to be buried or cremated, which was suspended by a federal judge before it could go into effect. The law would also have imposed rules designed to seriously impede the right to an abortion and subject doctors to potential jail terms. And it was under Pence’s governorship that Purvi Patel was given a since-reduced 20-year prison sentence for a miscarriage, after prosecutors claimed she had induced a “late” abortion.

A general in the war on gays and lesbians

In an Orwellian touch, then Indiana Governor Pence signed into law the “Religious Freedom Restoration Act.” The act does not grant freedom of religious belief, already strictly enforced and one that governments and courts bend over backwards to support, but rather was intended to allow evangelicals to force their religious beliefs on others. The law would have trampled on the rights of others, such as allowing businesses to refuse services to lesbian, gay, bisexual and transgender people, similar to Southern businesses being allowed to refuse service to African-Americans.

The Human Rights Campaign, in a report analyzing the Indiana law and other similar laws around the country, wrote:

“These bills are often incredibly vague and light on details — usually intentionally. In practice, most of these bills could empower any individual to sue the government to attempt to end enforcement of a non-discrimination law. The evangelical owner of a business providing a secular service can sue claiming that their personal faith empowers them to refuse to hire Jews, divorcees, or LGBT people. A landlord could claim the right to refuse to rent an apartment to a Muslim or a transgender person.”

Swift public pressure and announced boycotts led to a revision allegedly softening the law, but the intention is clear. A President Pence would surely feel emboldened to attempt such a law on the national level.

His animus toward the LGBTQ community is so severe that he tried to block federal funding of HIV treatments unless they came with a requirement to advocate against same-sex relationships. He opposes non-straight people serving in the military, going so far as to claim that “Homosexuality is incompatible with military service because the presence of homosexuals in the ranks weakens unit cohesion.”

A crusader against science

Not surprisingly for someone who believes in the Bible as the sole source of truth and law, Vice President Pence is no fan of science. He doesn’t believe in evolution or global warming. On evolution, a Think Progress analysis notes:

“Speaking with an inflection many evangelicals would recognize in their pulpits, Pence advocated in 2002 for changing science textbooks to describe evolution as merely one ‘theory’ among many, and suggested including ‘intelligent design’ — a school of thought similar to Christian Creationism — alongside the work of Charles Darwin.

‘The truth is [evolution] always was a theory,’ he said. ‘And now that we’ve recognized evolution as a theory, I would simply and humbly ask: can we teach it as such? And can we also consider teaching other theories. … Like the theory that was believed in by every signer of the Declaration of Independence? The Bible tells us that God created man in his own image, male and female he created them — and I believe that.’ ”

Vice President Pence’s hostility to science has apparently prevented him from understanding that human knowledge has progressed since the 18th century. That is of no consequence because God gave him the ability to read the minds of people dead more than 200 years.

The Minneapolis climate march of April 29, 2017 (photo by Fibonacci Blue)

And as to global warming, perhaps here the concerns of his billionaire backers are intermingled with his religious obscurantism. He once wrote an essay in which he said: “Global warming is a myth. The global warming treaty is a disaster. There, I said it.” Putting “greenhouse gases” in quotation marks (maybe he didn’t take chemistry in high school?), he assured his potential voters that the Earth had actually cooled over the previous 50 years. In a truly marvelous piece of perfect ignorance, he wrote:

“[T]he greenhouse gases alluded to are real but are mostly the result of volcanoes, hurricanes and underwater geologic displacements. Regrettably, none of these causes can be corralled by environmentalists hungry for regulation and taxes and, therefore, must be ignored.”

Funded by the Koch brothers

The Koch brothers must have been proud of him. He certainly has proved to be a winning investment for them. One of the brothers, David Koch, donated $300,000 to Pence’s gubernatorial bids, and there are strong ties. A 2014 Politico article reported:

“A number of Pence’s former staffers from his days in Congress have assumed major roles in the brothers’ corporate and political spheres. And Americans for Prosperity, the Kochs’ top political group, has been holding up Pence’s work in Indiana as emblematic of a conservative reform agenda they’re trying to take nationwide. … Pence has worked to spotlight the fiscal issues that animate the Kochs’ political giving. People close to the brothers say he first earned their network’s admiration during the George W. Bush years, when he opposed what he deemed Big Government policies backed by his own party, including No Child Left Behind and a Medicare expansion, and repeatedly warned that the GOP was veering off course.”

The Bush II/Cheney administration was too liberal! Something else to keep in mind should Vice President Pence gain even more power than he already has. Given his ability to understand how government works, he would likely be more effective at ramming through far Right wish lists than Trump. A Republican consultant quoted by The Guardian backed this opinion:

“Pence has outstanding relationships with the GOP leadership on Capitol Hill of all stripes, not just the social conservatives. So there’d be clear alignment and rapid progress on healthcare, taxation, and many other key policy initiatives that have eluded the party over the past months as a result of Trump’s unorthodox approach.”

To what extent the policies of the Trump administration are those of Mike Pence and what policies are those of White supremacist chief strategist Steve Bannon are difficult to know. Perhaps they have separate spheres of influence or, as is likely, there is considerable overlap in their agendas. The draconian budget proposed by the Trump administration on May 23 has the fingerprints of the budget director, Mick Mulvaney, a far right ideologue himself, but it is likely the vice president had much say in it — the punishments intended to be administered to people for the crime of being poor are certainly consistent with his style.

Given that Donald Trump doesn’t have the intellectual capacity or attention span to actually be president, and appears to rely heavily on a small coterie, Mike Pence likely is already directing much policy. There is nothing to choose between the two. We don’t have to declare them fascists to find them plenty scary enough. (You are, after all, reading this on your computer screen at your leisure rather than having this conversation in a concentration camp. And by this point, Hitler had already consolidated his dictatorship with political opponents and union officials murdered or in camps.)

We have all the reasons we could want to oppose the Trump administration at every step. An administration, not one personality. There is no reason to think ousting President Trump would lessen the danger to the world he presents, and could actually have the counter-intuitive effect of increasing it. Organize!

We better not wait to defend ourselves from Trump

I didn’t see it coming, either. And a nasty surprise it is, for like Britain’s vote to exit the European Union, the vote for Donald Trump was a huge step forward for the far Right despite whatever attempt there was to strike back against elites, however incoherently.

Perhaps we should never under-estimate the Democratic Party’s ability to snatch defeat from the jaws of victory. Before we dwell on the backlash, a quite possibly violent backlash, sure to come down on the heads of activists, there are two unanswerable questions to ask.

First, what would have happened if Bernie Sanders had been the Democratic standard-bearer instead of Hillary Clinton? Polling during the primary season consistently showed Senator Sanders doing much better than Secretary Clinton in theoretical head-to-head general-election match-ups. There are many who believe the former would have so slandered as a “socialist” that he’d have had no chance, but the power of that word to be a bogey is waning, particularly among younger voters. He described himself a “socialist” (even if he’s not) during the primaries as well.

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

Mr. Trump did not win with only White supremacists, tea partiers and the rest of the Republican base. He wouldn’t have won without the surge of support he received, particularly in the Midwest, from people who were just plain old pissed off and wanted a change, any change. Many of these voters would likely have gone to Senator Sanders as the vastly more rational and coherent candidate. Secretary Clinton was the embodiment of the establishment in a year when elites are in the cross-hairs. Misogyny surely played a significant role here as well, and perhaps that in itself was enough to make the difference.

Second, did Mr. Trump actually win? Let’s ask this question seriously. Many states use unaccountable electronic voting machines with no paper trail, and these are mostly supplied by a small number of manufacturers who closely guard the software code. Mark Crispin Miller, in his book Fooled Again: How the Right Stole the 2004 Election amassed a wealth of detail to argue that George W. Bush’s re-election was stolen via voting machines in multiple states. Some of those machines are still in use. Then there were the attempts across the country to suppress voter turnout, in North Carolina and elsewhere.

Could a couple of percentage points here and a few percentage points there have tipped the difference in enough states? We’ll never have a definitive answer, but it might be said that if the race hadn’t been close, there would have been no opportunity for any such cheating, if it happened. In 2008 and 2012, were there any such tampering, the result would have been no more than a reduction in Barack Obama’s margin of victory.

The egomaniac and the thugs who follow him

Regardless, Donald Trump is president. I never imagined writing or uttering such words. His first target may well be the Republican Party establishment, against whom he is likely to wreak revenge for not supporting him. That, however, would provide no more than a brief respite. For we know who his real targets are — he made it abundantly clear throughout his campaign. And remember the thugs who hang out with him — the likes of Rudy Giuliani and Chris Christie.

A criminalization of dissent is coming our way, and if I had to guess Black Lives Matter is a likely candidate to be the first target. There will be many more, ranging across the spectrum of Left activism, from Dreamers to abortion-rights activists to environmentalists to organizers fighting racism and police brutality.

Make no mistake: Those on the Left who blithely declared Secretary Clinton and Mr. Trump the same, and maybe the former even a little worse, are likely to find otherwise. Secretary Clinton is a war-mongering Wall Street-pandering technocrat who, rightly or wrongly, accrues some of the fallout from her husband’s presidency, when he proved to be the most effective Republican president we ever had, implementing policies Ronald Reagan and George H.W. Bush could have only dreamed of doing. Of course she is no choice. But had she won as expected, the room of grassroots activity would have been larger than it will be under a Trump White House.

Given the enormous number of areas where vigorous defensive actions will be necessary, and the heavy police-state repression that is sure to rain down on dissenters, there will be little if any opportunity to go on any offensives.

Consider this statement by Black Lives Matter co-founder Alicia Garza, who said of the election: “I am not voting for candidates. I am voting for terrain.” National Women’s Liberation said: “Under Clinton the terrain will be difficult for us, as well as the targets of her hawkish foreign policy. To get the things women need, we need a lot more than a woman president, we need a strong movement making bold demands, much bolder than anything in Hillary’s platform. But making bold demands under a Hillary Clinton administration will be a lot more likely to build into a powerful, effective force than it will if Donald Trump is elected.”

Let’s not sugar-coat this: The next four years are going to be very dark. Although I wouldn’t call the Trump campaign fascist, I do believe we can see it as constituting the seeds for a potential fascist movement. That is more than scary enough — and that retrograde movement will now have the power of the state behind it.

The breakdown of an economic consensus

As awful as Secretary Clinton is, a Trump White House will be something beyond the ordinary neoliberal prescriptions. The first election I ever voted in was Ronald Reagan’s 1980 victory, one also unexpected. That had been a dead heat going into the final weekend, in days when polling was nowhere near as obsessive as today. I still remember the chill of horror that went down my back as I emerged from an event to look up at a television announcer proclaiming a “tidal wave of red” spreading across the map. I had not thought United Statesians would really vote for him, but they did, lulled to sleep by his ability to tell people what they wanted to hear, no matter how at variance with reality.

Looking back across the decades, as immediately disastrous as the Reagan years were, we could not grasp the enormity of what had happened: His election, along with Margaret Thatcher in Britain the year before, inaugurated a whole new era, one that would later be coined “neoliberalism” as the post-World War II Keynesian consensus definitively was brought to an end and class war sharply intensified. The world’s capitalists brought about this change in response to their no longer reaping the profits they were accustomed to in the 1950s and 1960s. Reagan and Thatcher were the human material embodying a new era and dragging the political sphere into a tighter domination by industrial and financial elites; an era when the traditional balance between industrialists and financiers was upended and financial capital gained the upper hand among elites.

Neoliberalism is now breaking down. Rosa Luxemburg’s formula looms large for us today: socialism or barbarism. Or call it a better, more democratic world or barbarism if you prefer. As neoliberalism begins to break down, and working people around the world increasingly chafe at their conditions, they are seeking to punish elites with whatever limited means they have. This justifiable anger could be channelled into organized activity, in which social movements cohere and join together to effect the structural changes that are necessary and eventually push toward a wholly different system.

In the absence of such movements or a coherent Left, the Right fills the vacuum, lashing out at scapegoats and seeking saviors in demagogues, even a demagogue whose real estate career is based on screwing working people like those who voted for him and not paying taxes, again unlike those who vote for him but have so much less.

The Right has the money, control of the corporate mass media, institutional support and vast means of decisively influencing opinion-making. Mr. Trump received more than a year of favorable publicity by the corporate media, but nonetheless his ability to bamboozle so many is a monument to the lack of education and anti-intellectualism that is so prevalent in the United States. Given his own ignorance and lack of any program beyond enriching himself, coupled with his open racism, appalling misogyny, virulent nationalism, shallowness, lack of maturity, thin skin, inability to empathize with other people, encouragement of violence against opponents, eagerness to give carte blanche to the police, encouragement of nuclear-weapons proliferation and outright denial of global warming, it is no stretch to declare Donald Trump the biggest danger we’ve ever faced in the White House.

Barbarism has become less theoretical. The time to begin organizing is now, before he takes office and command of the world’s most deadly security apparatus. We either demonstrate strong resolve against authoritarian rule, sure to be led by some of the most vicious right-wing operatives around, or a Trump White House is going to unleash repression on a scale not seen in decades. There is no more room for indulging ultra-left phrase-mongering: We have a clear and present danger. Stand up for whoever is first in line, for eventually they may be coming for you.

There are no Democratic or Green saviors: Get in the streets!

Regardless of the outcome of November’s U.S. elections, what will count most is what happens in the streets. As Frederick Douglass put it plainly a century and a half ago, “If there is no struggle, there is no progress. Power concedes nothing without a demand. It never did and never will.”

All the advances of the 20th century (most of which are being steadily eroded in these early years of the 21st century) came about through organized movements, forcing elected officials to react.

I know that what I’ve written above is something that most of you reading this already know. But it does seem that we need to remind ourselves of this as United Statesians ponder a choice of two of the most unpopular candidates in the history of U.S. presidential campaigns, a choice reflecting the growing crisis of capitalism. The technocratic corporate war monger versus the proudly ignorant misogynist egomaniac. But it doesn’t necessarily follow that a ready-made alternative exists on the November ballot, and not simply because either Hillary Clinton or Donald Trump will be the next president.

Hermann Park in Houston, location of the 2016 Green Party convention (photo by Another Believer)

Hermann Park in Houston, location of the 2016 Green Party convention (photo by Another Believer)

Revolutions are made in the street, not in the election booth. Bernie Sanders can promise a “revolution” all he wants, but no matter how fervently some of his followers wish it, the Vermont senator offered no revolution. Significant reforms that would be welcome should they be realized, certainly. But Senator Sanders offered merely to ameliorate the conditions of capitalism, not transcend them. His example, Sweden, is not a socialist country, even if it is a county that is much more humane. The Swedish government didn’t keep its banks in public hands after nationalizing them during an early 1990s crisis; instead it re-privatized them.

Secretary Clinton supports every U.S. imperial adventure, while Senator Sanders supports only some of them. Moreover, Senator Sanders’ main complain about NATO isn’t its imperial mission but rather that Europeans don’t pay more. Why should I get worked up over this difference?

And that brings us to Jill Stein, about to receive the Green Party’s presidential nomination. Or, rather, to the Green Party itself. Those who see the Greens as an anti-capitalist alternative are, sad to say, destined for disappointment. Here I can speak from personal experience, having been highly active in the New York State Green Party more than a decade ago, and even serving as the editor of state party’s newspaper for two years. There are Greens who are sincerely socialists, and who would like to see the party be socialist, but these folks represent the left wing of the party, not the party as a whole.

Contradictory trends among Greens

The New York Green Party at the time I was active was filled with liberals and ex-Democrats; the latter joined when the Greens earned ballot status in New York because they had not risen in the Democratic Party and believed they could be big fish in a small pond. Many of these folks wished for nothing more than to tug the Democrats a bit to the left and to cross-endorse Democratic candidates deemed sufficiently progressive. But as Democrats thoroughly dominate state politics and have no need for Green support, such cross-endorsements were worth nothing and these dreams of influence proved empty. At the national level, shortly before I ceased active involvement, a bureaucratic structure calling itself Green Party US was created, further cutting off the party’s rank and file from decision-making.

The center and right wings of the party (more oriented toward electoral politics than activism) generally supported the creation of Green Party US; unfortunately they were supported by a minority of activism-oriented Greens, one of whom, a sincere life-long activist who should have known better, argued on the floor of a state party assembly against me that “the train is leaving the station and we have to be on board.” That the Green Party’s national committee this year approved an “ecological economics” plank that declares the party “anti-capitalist and in favor of a decentralized vision [of] socialism” does not magically turn a “big tent” party into a socialist one.

The party’s platform has stated that “Greens support small business, responsible stakeholder capitalism, and broad and diverse forms of economic cooperation.” The new language, to be formally approved at this week’s national convention, states that the party “seeks to build an alternative economic system based on ecology and decentralization of power” and seeks to instead “build an economy based on large-scale green public works, municipalization, and workplace and community democracy.” Further, the new language states that “Production is best for people and planet when democratically owned and operated by those who do the work and those most affected by production decisions. This model of worker and community empowerment will ensure that decisions that greatly affect our lives are made in the interests of our communities, not at the whim of centralized power structures of state administrators or of capitalist CEOs and distant boards of directors.”

Yes, a significant step forward from the thinly disguised “green capitalism” that the party previously had stood for. Green capitalism, the hope of liberals and social democrats that the same system that has brought the world to economic, political and environmental crisis will somehow solve these problems, is a fantasy, one best given no quarter. I certainly do not wish to discourage Greens, or anybody else, from moving beyond the chimera of “green capitalism.” But does an organization declaring itself “socialist” — or, in this case, “anti-capitalist” — make it so? A measure of caution is warranted.

The record of the Green Party is not particularly strong. In 2004, maneuvering by David Cobb’s supporters wrested the presidential nomination from Ralph Nader (although national-convention attendees I talked to told me that had Mr. Nader campaigned for the nomination rather than expecting it to be handed to him by right he would have been the nominee). Mr. Cobb ran a “safe states” campaign, whereby he would only ask for votes in states that were firmly in the hands of one of the major parties, unmistakably implying that voters in states that were up for grabs should vote for pro-war Democrat John Kerry. I should note that when I had a chance to ask him about this intellectually dishonest campaign, he, with a straight face, told me that he was running a 50-state campaign. But his slick “professional politician” personality told a different story.

Mistaking Bernie Sanders for a savior

That mistake hasn’t been repeated. But Dr. Stein committed a serious strategic error when she offered to cede the presidential nomination to Senator Sanders if only he would abandon the Democratic Party and instead become his vice presidential running mate. Why a person as serious as she is would indulge in such a fantasy I do not know. There was no possibility of Senator Sanders doing anything other than endorsing Secretary Clinton; he not only said so clearly from the start but political reality (i.e., his ability to retain any influence in the party) mandated that he do so. Complaining that he is a “sellout” for doing so is naïve.

Here, I would strongly disagree with the analysis of Chris Hedges that it was a mistake for him to have run as a Democrat instead of as an independent — his impact would have been minuscule had he done so. Whatever criticisms we have of Senator Sanders, he galvanized millions of people and put socialism into a national conversation, even if he wasn’t actually offering socialism. These are positive steps.

Dr. Stein does offer a more progressive vision than that of Senator Sanders. And let us note the new anti-capitalist plank in the Green platform. But there is a world of difference between an abstract idea and practical work to make that idea a reality. The history of social democracy, theoretically parties working toward a form of socialism, provides ample evidence.

Germany’s former Social Democratic chancellor, Gerhard Schröder, pushed through his “Agenda 2010” legislation in 2003 that imposed austerity. The so-called “German miracle” has been so only for German multi-national capital. The “secret” to Germany’s economic dominance within the European Union is cuts to German wages. Germany has undercut other countries that use the euro as their currency by suppressing wages, while the common currency has the effect of making German exports cheaper.

In France, the “Socialist” government of Francois Hollande has resorted to bypassing parliament to impose rules speeding up layoffs and cutting wages. And then there is Tony Blair in Britain, Jean Chrétien in Canada and so on.

German Greens invert definition of imperialism

The Greens are not the Social Democrats. But does that make them genuinely different? Recall that when the German Greens attained power, joining a Social Democratic government as a junior partner, they found themselves administrating Germany’s nuclear power plants despite their anti-nuclear stance, and eagerly joined in the bombing of Yugoslavia, a particularly unfortunate place for Germany to intervene militarily given the history of World War II in the Balkans. This was the handiwork of Joschka Fischer and his wing of the German Green Party, who liked to call themselves “realos” (realists) while dismissing those who sought to uphold the party’s ideals as “fundis” (fundamentalists).

The “realos” did not engage in Germany’s first post-World War II imperial adventure unwillingly. I was one of a small group of New York Greens who sent a letter to the German Green leadership asking them to honor party principle and not participate in the U.S.-led bombing of Yugoslavia. We received a response calling us arrogant and imperialists for daring to discuss their policies. Separately, a letter sent from The Greens/Green Party USA, the more progressive of the then two U.S. national organizations, asked the German Greens to “set an example” by opposing the bombing of Yugoslavia or participating in the U.S. war in Afghanistan. German Green leadership responded by dismissing the request as “a terrific exercise in ‘green imperialist’ thinking,” as “sectarian propaganda from afar” and as an “attempt to lecture and bully other parties.”

A U.S. sister organization asks for support of its opposition to U.S. war-mongering waged to open new lands for U.S. multi-national corporations to exploit and for this they are called imperialists and bullies!

Expecting socialism from such a party is futile. Remember, that swatted-away criticism wasn’t from U.S. Greens as a whole, but rather from the party’s left wing. The Greens are not a revolutionary grouping, and are and will be moved in the directions that social democratic parties are moved. That Dr. Stein in effect declared that a Democratic candidate who is in favor of many imperialist adventures and who supported the stationing of air force bombers against the will of his constituents is the savior of the United States amply demonstrates that the party has not shaken itself free of capitalism or properly analyzed the nature of imperialism.

One of the underlying reasons for that is its lack of strongly defined principles. The “10 Key Values” on which the party bases itself are vague, a lowest common denominator representing what could be agreed upon. Much of the party is led by middle class people who tend to vacillate. For now, the campaign of Senator Sanders has helped put socialism in a national conversation, so the switch to anti-capitalism in the party’s program can be interpreted more as a weather vane than a sudden move leftward. If the wind shifts, it can not be excluded that the platform will as well.

Expediency over principle

Senator Sanders simply fails to make the connection between austerity at home and imperialism abroad, and that is a serious error reflecting his lingering nationalistic thinking and an inability to make a proper critique of capitalism. Dr. Stein, I believe, does not share these deficiencies, but that she was willing to indulge them for the sake of an ill-fated, chimeric short-term expediency reflects an organization that is groping toward some version of a kinder and gentler capitalism, not one working toward socialism no matter what its platform states. And thus not a party that genuinely offers an alternative to the detested two-party system, one deeply rooted in the winner-take-all, single-seat district U.S. electoral structure.

And what choice is there between those two parties? On the surface, it would appear that there are drastic differences between the two. The demagogue Donald Trump offers a dark vision of turning back to the 19th century, when everybody not a White male possessing wealth knew their place. The technocrat Hillary Clinton, and other speakers at the Democratic Party national convention, offered soaring visions of a coming world of equality and hope, a kinder and gentler capitalism that will bring prosperity to all. President Barack Obama, in particular, gave a bravura performance. As I watched some of this, I couldn’t help but think “If only they meant it.”

However outstanding the oratory, the dismal results speak for themselves. Bill Clinton was the most effective Republican president the U.S. ever had, putting into law policies that Ronald Reagan and George H.W. Bush could only dream of doing. The Obama administration organized repression against Occupy Wall Street, unilaterally kills people with drones and protects Wall Street. Given her record as a senator, her pathetic foot-dragging on same-sex marriage until it was absolutely safe to be in favor, her role as the leading hawk of the Obama administration and her support of the Trans-Pacific Partnership as the “gold standard” of trade agreements until political pressure forced her into carefully worded opposition that leaves her maneuvering room, can it be reasonable to believe her administration will be substantially different?

The only route to a better world is through mass movements articulating clear goals. But instead of settling for reforms, the only way out of our present crises is to push beyond what is possible in the world’s present political systems. There are only two reasons for voting for Secretary Clinton instead of Mr. Trump — one, that voting for the latter is a vote for open racism, misogyny and immigrant-bashing embodied in a candidacy that carries with it the seeds of a potential fascist movement and, two, that it would be better to be on the offensive than the defensive. A Trump presidency would necessitate a multi-pronged movement against an all-around assault on civil rights just to maintain the crumbs left to us. Although a Clinton presidency is hardly destined to be a golden age, mass movements would be better able to go on the offensive as she will have to give lip service to the campaign promises she has been forced, through gritted teeth, to make to fend off Senator Sanders’ primary challenge.

Either way, what we do in the streets, what pressure movements bring to bear, will be decisive. Vote for a lesser evil if your conscience dictates (although I can’t bring myself to do so), but then get in the streets to push hard that lesser evil. There are no saviors on the ballot, not Bernie Sanders, not the Green Party. Some day we will have candidates we can vote for rather than against, but there is much work to do before we arrive at that day. That work is up to us.

We all pay for low wages

When you are paid starvation wages, it’s up to public-assistance programs to make up the difference. That government assistance, costing treasuries billions of dollars per year, is part of the high cost of low wages.

Raising the federal minimum wage to $12 an hour would save an estimated $17 billion per year for U.S. taxpayers, according to a study by the Economic Policy Institute. The EPI’s study, “Balancing paychecks and public assistance,” found that, not surprisingly, low wages equal government help. A majority of United Statesians who earn less than $10 an hour receive public assistance, either directly or through a family member.

The study’s author, David Cooper, examined participation in eight federal and state means-tested programs for low-income families — the earned income tax credit; the refundable portion of the Child Tax Credit; the Supplemental Nutrition Assistance Program (what used to be known as food stamps); the Low Income Home Energy Assistance Program; the Supplemental Nutrition Program for Women, Infants and Children, commonly known as WIC; Section 8 housing vouchers; Medicaid; and the Temporary Assistance for Needy Families program and its state and local equivalents.

Protestors outside a McDonald's in Minneapolis demand a $15 hourly wage and paid sick days (photo by Fibonacci Blue)

Protestors outside a McDonald’s in Minneapolis demand a $15 hourly wage and paid sick days (photo by Fibonacci Blue)

Working people with low wages use these programs heavily. One-third of Supplemental Nutrition Assistance Program recipients are full-time workers and one-half of WIC recipients are full-time workers.

Contrary to right-wing propaganda, most recipients of public assistance work, a large number of them full time. The EPI study reports:

  • Among families or individuals receiving public assistance, two-thirds (67 percent) work or are members of working families (families in which at least one adult works). When focusing on non-elderly recipient families and individuals under age 65, this percentage is 72 percent.
  • About 69 percent of all public-assistance benefits received by non-elderly families or individuals go to those who work.
  • About 47 percent of all working recipients of public assistance work full time (at least 1,990 hours per year).

Nearly $53 billion of public-assistance money is paid annually to people who work full time, the EPI study reports. And, full- or part-time, money going to working people is concentrated in specific industries. More than half goes to workers in three sectors: educational, health and social services; arts, entertainment, recreation, accommodation and food services; and retail trade.

Privatizing profits, socializing costs

Although not addressed in the EPI study, a big conclusion to be drawn from this data is that these billions of dollars of public-assistance money constitutes a massive subsidy of business. Often highly profitable businesses. Take War-Mart, for example. Wal-Mart reported net income of $14.7 billion for 2015 and nearly $80 billion for its last five fiscal years. Yet the company pays it employees so little that employees organize food drives for themselves while it dodges billions of dollars of taxes and receives further billions of dollars in government subsidies.

Currently, the federal minimum wage is $7.25 an hour. Adjusted for inflation, the U.S. minimum wage peaked in 1968 when the then $1.60 rate would be worth $10.95 in 2016 money. So although that peak total is itself low, the federal minimum wage has lost more than one-third of its value.

Or, to put this in another perspective, one of the demands of the March on Washington in 1963 was a minimum wage of $2 an hour. Adjusted for inflation, $2 an hour in 1963 would be worth $15.56 today. So today’s activists demanding a $15 minimum wage are simply asking for the same thing that was asked a half-century ago. Nothing outlandish.

It is no secret that wages have badly lagged productivity, nowhere more in the global North than in the United States. Wages for U.S. workers have fallen behind productivity gains since the 1970s, to the point that the average U.S. household receives $18,000 per year less than it would had wages kept pace. Canadian households are about $10,000 behind. Differentials between wages and productivity are also found, albeit in less drastic form, across Europe and in Japan.

We can’t order a return to Keynesianism

So what conclusion should we draw from all this? Unfortunately, the EPI study concludes with what can only be termed weak-tea liberalism. Wishing for a return to Keynesianism, the author writes:

“[W]e can raise wages by eliminating the lower subminimum wage for for tipped workers, updating overtime protections, strengthening workers’ ability to organize and negotiate with employers collectively, improving enforcement of labor laws, providing undocumented immigrant workers a path to citizenship, and ensuring monetary policy prioritizes full employment.”

There is nothing wrong with any of these prescriptions. Such reforms would be quite welcome. But these goals can not simply be conjured into existence. Nobody decreed we shall now have neoliberalism and nobody can decree we shall now go back to Keynesianism. We haven’t gotten to the disastrous state we are in by accident or simply because of the personal decisions of corporate executives and financiers.

Rather, the neoliberalism we experience today is the logical result of capitalist development; “logical” in the sense that the relentless scramble to survive competition eventually closed the brief window when rising wages were tolerated and government investment encouraged. The Keynesian policies of the mid-20th century were a product of a specific set of circumstances that no longer exist and can’t be replicated.

Intensified competition over private profits, and that “markets” should determine social outcomes, inexorably leads to a consolidation in which industries are dominated by a handful of giant corporations, and those corporations gain decisive power over governments and relentlessly reduce overhead (especially wages and benefits) in a scramble for survival.

Fighting back is surely what working people around the world need to do. But restoring a “golden age” of capitalism that never really existed (and definitely didn’t if you were a woman confined by limited options or an African-American facing officially sanctioned discrimination and/or state-endorsed terrorism) is a quixotic goal. Better to drive our energies into creating a better world, one in which the economy is geared toward human need rather than private profit.