Solidarity instead of hierarchy as “common sense”

When the serious work of building a better world starts, we will have no choice but to use some of the bricks of the current world as we begin that construction. A social or economic system does not completely eradicate all traces of the immediately preceding system overnight. Nonetheless, the repressive elements of the prior system must be eliminated as quickly as possible, with new structures and thinking capable of defining the better world.

If socialism is to be that better world, what structures might be necessary? Socialism can be defined as a system in which production is geared toward human need rather than private profit for a few; where everybody is entitled to have a say in what is produced, how it is produced and how it is distributed; that these collective decisions are made in the context of the broader community and in quantities sufficient to meet needs; political decision-making is the hands of the communities affected; and quality health care, food, shelter and education are human rights. There is no class, vanguard or other group that stands above society, arrogating decision-making, wealth and/or privileges to itself.

A blueprint for such a future is not possible; a better world will be created in its making. But neither can we leap to a different world empty-handed or without a compass. Tangible counter-examples and concrete ideas are necessary if working people — the vast majority of humanity — are to break free from their acceptance of capitalism as “common sense” or the “only alternative.” When ideas become rooted in masses of people, they become a natural force, argues Michael Lebowitz in his latest book, The Socialist Imperative: From Gotha to Now.* He uses the example of the “socialist triangle” to explicate a structure for a better, democratic system.

Socialist Imperative coverThe three sides of the socialist triangle (a concept put in this form by Hugo Chávez) are production for social needs and purposes, social production organized by workers and social ownership of the means of production. None or any two of the three sides stand on their own; each is dependent on the other two.

Production for social needs is defined as production accomplished for our common needs. This is envisioned as production in which we would go beyond self-interest and therefore create a “solidarity economy.” Social production organized by workers is essential for developing the capacities of working people. Decisions in the workplace are made by the workforce as a whole, developing the capacities of all. Social ownership of the means of production does not mean the state owns all enterprises; it “implies a profound democracy” in which people, in their capacities as workers and as members of society, determine the results of their labor.

A society in which all can freely develop

Professor Lebowitz proposes a “Charter for Human Development,” offered as “self-evident requirements”:

“1. Everyone has the right to share in the social heritage of human beings — an equal right to the use and benefits of the productions of the social brain and the social hand — in order to be able to develop his or her full potential.
2. Everyone has the right to be able to develop his or her full potential and capacities through democracy, participation, and protagonism in the workplace and society — a process in which these subjects of activity have the precondition of the health and education that permit them to make full use of this opportunity.
3. Everyone has the right to live in a society in which human beings and nature can be nurtured — a society in which we can develop our full potential in communities based upon cooperation and solidarity.” [page 174]

The goal of these three points, Professor Lebowitz writes, is to redefine the concept of fairness:

“It is unfair that some people monopolize the social heritage of human beings; it is unfair that some people are able to develop their capacities through their activities while others are crippled and deformed; and it is unfair that we are forced into structures in which we view others as competitors and enemies.” [page 174]

We are talking about a different world than the one we live in now. Quite different. A world in which these are guiding principals is a world that has a new concept of “common sense.”  Any ideology, if its hold on a sufficiently large percentage of people is strong, becomes a material force. Industrialists and financiers, who constitute the dominant class in the present world and thus decisively shape contemporary belief systems, can and do wield an enormous and deadly apparatus of violence to maintain their dominance, true, but that is insufficient in itself. Capitalism’s staying power rests on the widely held belief that there is no alternative to it.

Capitalism “tends to produce the workers it needs,” Professor Lebowitz argues, drawing on Karl Marx’s insights. People’s need to sell their labor power — that is, their need to obtain employment in order to survive — and the creation of perpetual unemployment creates a dependency on capital that has continued for so long that the capitalist mode of production comes to be seen as “self-evident natural laws.” Struggles are therefore contained within the confines of capitalism. Bargaining over wages and working conditions can become contentious, but this is never more than bargaining over the terms of exploitation; the relations within this system are never touched. Thus an alternative common sense must be constructed.

Going beyond limitations of past models

Neither the Soviet model, overly centralized and lacking in democracy, nor the Yugoslav model of cooperative enterprises constitute that alternative common sense. The Socialist Imperative argues that the Soviet system discouraged innovation because workers and managers saw it as disruptive. Moreover, initiative was monopolized by central planners and party elites, reproducing problems of alienation even if workers’ expectations of guaranteed employment and rising consumption were sufficiently strong to constrain leaderships.

In the case of Yugoslavia, unemployment was produced because workers (who were self-managers) sought to maximize their enterprises’ income per worker. Workers acted in solidarity, but only within their own enterprise; eventually loans were used to finance higher pay in weaker enterprises. The logic of capital gained ground, Professor Lebowitz argues, until Yugoslavia accepted an International Monetary Fund loan and passed a 1988 law that substituted stockholders for workers’ councils, hastening the end of the Yugoslav experiment.

Solidarity across society and a decoupling of consumption with work capacity are offered as the keys to a socialist society. Income distribution based on an individual’s capacity to work is a distribution based on unequal personal endowment or inheritance and thus a “right to inequality.” In other words, different people are born with different capacities, and social solidarity mandates that those accidents of birth not be made into permanent sources of inequality. Permanent inequalities are products of capitalist relations.

We are stunted individuals under capitalism; paid a small fraction of the value of what we produce and, given the dictatorial nature of relations in the capitalist enterprise, told we are incapable of making decisions and thus unable to develop ourselves. We are also kept divided along gender, racial, religious and national lines and fighting among ourselves, helping keep capitalists in power. Going beyond reformism and instead struggling together to overturn capitalist relations creates the capacity to do so:

“The working class makes itself a revolutionary subject through its struggles — it transforms itself.” [page 143]

Who is this working class? It everybody who has no choice but to “sell their labor power” — those who can not survive other than by hiring themselves to a capitalist. Those who have a job, those out of work and those who survive in the informal sector. Crucially,

“They may not correspond to the stereotype of the working class as a male factory worker, but that stereotype was always wrong.” [page 145]

Building a solidarity state from a local base

A social state can only be constructed from the bottom up, The Socialist Imperative argues. Drawing on the example of the communes of Venezuela, the book envisions neighborhood councils as the basis of local decision-making, with successively larger representations through councils established on city, regional, state/provincial and national levels. Mechanisms would be needed to transmit information up and down these levels for national-level decisions to be made as democratically as possible and for communities to have proper input. Needs and capacities would be assessed to democratically plan to meet those needs and make adjustments based on available capacities.

Socialist triangleEnterprise transparency and worker education would be established in the workplace to begin the process of social production. Worker decision-making would be increased step by step through negotiations between workers and management on the basis of social contracts filed with a ministry of work. These would be steps toward social ownership of the means of production necessary for the full development of human beings and society. The local self-interest that would exist at the start of this process would be a relic of the old (capitalist) system that would need to be overcome to establish a system fully rooted in social solidarity.

The movement must go beyond simply taking state power, Professor Lebowitz writes, but must create spaces for the grassroots to transform into active agents. Old structures must be subordinated:

“Working within a hierarchy, functioning without the ability to make decisions in the workplace and society, and focusing upon self-interest rather than upon solidarity are activities that produce people on a daily basis; this is the reproduction of the conservatism of everyday life — indeed, the reproduction of elements of capitalism.” [pages 189-190]

No blueprints are offered in the book; properly so as pre-conceived conceptions are useless. It would have been useful to have had more concrete examples in a book that is sometimes a little too abstract, but it does provide a thorough grounding in why the salvation of humanity and Earth itself rests on a transition to a rational, democratic system, one based on human need and not the profits of a privileged few. The form of that system will be different from 20th century systems that called themselves “socialist” and necessarily vastly different from any form of capitalism. We have a world to win, a goal for which Michael Lebowitz has given us an inspirational guide.

* Michael Lebowitz, The Socialist Imperative: From Gotha to Now [Monthly Review Press, New York 2015]

Québec fights back against austerity

We are supposed to accept austerity as being as natural as ocean tides. Or be demoralized by the power of the forces that continually press down on working people around the world. But there is an ongoing, organized fightback going on — in Québec.

A series of rolling strikes by public-sector employees and students throughout 2015 appear to be headed toward a provincial general strike in December. Haven’t heard of this? That is not because it is francophone workers and students are who are driving these actions but because there has been a near total blackout of this news in the North American corporate media.

It would be all too easy to assume that that the owners and managers of corporate-media outlets don’t wish you to know that such fightbacks are possible. That may be so in some cases; it is more likely that the activity of working people, as opposed to the proclamations of business elites, simply aren’t seen as “news.” Read through the business section of your local newspaper — you will find it chock full of hand-wringing on behalf of corporate interests, with neoliberal ideology presented as the only possible orientation.

Downtown Montréal from Mont-Royal (photo by Anna Kucsma)

Downtown Montréal from Mont-Royal (photo by Anna Kucsma)

There are other possibilities, and such alternatives are being loudly put forth in Québec. Although the outcome of the current struggles for a fair contract for public-sector workers and increased support for education are far from being settled — much less the larger social issues thrown up by the neoliberal project — victories have been won, going back to the Maple Spring of 2012.

The 2012 student strike was so successful that it caused the provincial government to fall. The Québec government, then controlled by the Liberal Party, intended to raise tuition by 75 percent over three years. Protests and strikes quickly blossomed, shutting down universities and leading to street battles as police repeatedly attacked near daily demonstrations that sometimes numbered more than 100,000 as students were joined in large numbers by older people. The Liberal government dug in its heels, not only refusing to negotiate seriously but passing a law making the demonstrations illegal.

After months of struggle, the government called an early election, which it lost, ushering in a Parti Québecois government that promptly rescinded the tuition increases, canceled the anti-demonstration laws and, in an environmental gesture, reversed the Liberal support for fracking. Unfortunately, this victory is also an exemplary lesson of how capitalist reforms are ephemeral: The Parti Québecois ultimately failed to live up to its promises, itself called an early election, and was handed a stinging defeat, bringing the Liberal Party back to power.

Back in office, back to attacking

Québec’s new Liberal Party government, now headed by Premier Philippe Couillard, resumed its neoliberal assault. (A lesson that ought be borne in mind by those celebrating last month’s national election of Justin Trudeau.) The Québec government seeks to impose a de facto wage cut (offering a three percent increase over five years, well below the rate of inflation), institute a two-tier wage scale, raise the retirement age and cut pensions. In education, Premier Couillard wants to add eight hours to the workweek, cut teacher staffing for special-education students by two-thirds and impose drastic cuts in funding. For health care, he wants to impose funding cuts, more forced overtime and greater number of patients per nurse.

The Québec government claims a lack of money is behind its austerity measures, yet it had no hesitation in handing Bombardier Inc., one of the province’s biggest corporations, a $1 billion subsidy this year. Bombardier did report a loss in 2014 and is in the red for this year, but only due to accounting tricks; it reported $2.8 billion in net income for the previous four years.

As always, there is plenty of money for corporate handouts. Ideology, then, is the real reason behind these attacks. This has not gone unnoticed, by either the students or the working people who are uniting to fight back. Camille Godbout, spokesperson for the student group Association pour une solidarité syndicale étudiante (ASSÉ), said:

“Often, we are asked why we, the students, are mobilizing ourselves against austerity measures. For us, the answer seems clear: the government is trying, through its repeated compressions, to place the entirety of our public services in permanent crisis. The final objective of this government is that we turn more towards the private sector and establish a ‘user-payer’ model in Québec. In rendering our services non-functional due to inadequate financing, the solution of Mr. Couillard and his minsters will be to raise individual fees.

We refuse this logic which reduces us simply to consumers who will need to pay for each use of our health, education, daycare and all other services necessary for the good functioning of a rich society.

As soon as we note that the six biggest banks in Canada had profits of over 34 billion in 2014 and that, despite everything, they are taxed less and less, we know that we have the means to do things differently. It would suffice to go find the money there where it can really be found rather than systematically making the population poorer. For example, the return of a 1% tax on capital gains for financial institutions would bring in more than 600 million for the state.”

Calls for unity

A November 8 communiqué issued by the Front Commun, an umbrella organization of 400,000 workers from three unions across Québec, also made clear its belief in unity:

“Our members will not agree to become impoverished to finance tax cuts for business and the rich. [The government] ignores the conditions that we asked, that no one should get poorer at the end of this restructuring and that the wage freeze was not acceptable. … 18,000 people would see their salary reduced overnight … and many young people would start their careers with lower salaries. We can not accept such parameters.”

More than 60,000 Québec students went on strike in March; dozens of May Day demonstrations were held; parents have formed human chains in front of their children’s schools to symbolize their intent to defend them against cuts on three separate autumn days; schools were shut down across Québec by teacher strikes on October 7; 150,000 demonstrated in Montréal on October 10; and a series of rolling two-day strikes in cities and regions across the province have taken place throughout November by health care workers, teachers, administrative officials and others.

This was to culminate in a three-day provincial general strike beginning December 1. But, for now, that general strike has been called off. The Front Commun announced on November 18 that because the government has finally made a counter-offer, although inadequate, it will continue to negotiate. It said that it “has no plans to cancel the strike days, or to suspend the movement” and said its postponement of the December strike will be “short-lived” in the absence of significant movement at the negotiating table.

Several organizations have been in the forefront of Québec’s fightback against austerity. In addition to the student union ASSÉ, which played a leading role in the 2012 Maple Spring, and the union federation Front Commun, parents have organized the Je protège mon école publique, more militant rank-and-file union members are organizing through Lutte Commune to maintain pressure on union leaderships, and the Red Hand Coalition brings together unions, community organizations and students.

Lutte Commune’s open letter urges union locals to reach out to the broader working class through convening local strike committees that would make the case that the unions are fighting for the services and living standards of everybody. The group also has vowed to campaign for a rejection if union leaders accept a concessionary deal.

Solidarity as the key to struggle

The Red Hand Coalition has called a November 28 demonstration in Montréal, demanding the provincial government obtain the money to meet worker and student demands by reinstating the tax on capital gains for banks; increasing the number of levels of taxation to ensure genuine progressive taxation and a greater contribution of the richest; and increasing taxes for large companies rather than decrease them again. The coalition, which is organizing a series of conferences in anticipation of united mobilizations, says:

“While millions of dollars in further cuts await us, how can we together stop the destruction of public services and social programs by the Couillard government? By solidarity!”

That is a lesson for all places. That there is a robust public sector to defend is a product of a united front in 1972 and a bitter strike that held because of solidarity. During the strike, the government passed draconian laws mandating workers return to work. Union leaders were slapped with year-long jail terms for not calling off the strike, but a province-wide general strike was victorious.

Three years ago, when the previous Liberal Party assault was pushed back by the Maple Spring, ideology and not finance were really what counted for the government. Students estimated that the provincial government spent C$200 million, citing police and related costs, the value of canceled classes, the costs of personnel maintaining empty buildings and the cost of making up a lost semester. Martine Desjardins, president of the Fédération étudiante universitaire du Québec, a student association with 125,000 members, said to The Montreal Gazette that those costs exceeded what would have been collected from the tuition increases:

“The tuition for seven years was supposed to bring in about $170 million. So you can see it’s not about economics, but about ideology. It just doesn’t make sense.”

In terms of common sense, it doesn’t. In terms of class warfare waged from above, alas, it makes much sense. Class warfare has been a one-sided affair since the dawn of capitalism. It is long past time we fought back.

Now that we can see the TPP text, we know why it’s been secret

The text of the Trans-Pacific Partnership can now be viewed by the public, thanks to the New Zealand government, and it is every bit as bad as activists have been warning.

The TPP, if enacted, promises a race to the bottom: An acceleration of jobs to the countries with the lowest wages, the right of multi-national corporations to veto any law or regulation their executives do not like, the end of your right to know what is in your food, higher prices for medicines, and the subordination of Internet privacy to corporate interests. There is a reason it has been negotiated in secret, with only corporate executives and industry lobbyists consulted and allowed to see the text as it took shape.

The threat from the TPP extends beyond the 12 negotiating countries, however — the TPP is intended to be a “docking” agreement whereby other countries can join at any time, provided they accept the text as it has been previously negotiated. Moreover, the TPP is a model for two other deals: the Transatlantic Trade and Investment Partnership (TTIP) between the United States and the European Union, and the Trade In Services Agreement (TISA), an even more secret “free trade” deal being negotiated among 50 countries that would eliminate any controls on the financial industry.

Activists celebrate after the New York City Council declares the city a "TPP-free zone."

Activists celebrate after the New York City Council declares the city a “TPP-free zone.”

The elimination of protections is precisely what U.S. multi-national corporations intend for Europe by replicating the terms of the TPP in the TTIP, a process made easier by the anti-democratic nature of the European Commission, which is negotiating for European governments. Already, higher Canadian standards in health, the environment and consumer protections are under sustained assault under the North American Free Trade Agreement. The TPP is an unprecedented corporate giveaway, going well beyond even NAFTA, which has hurt working people and farmers in Canada, the U.S. and Mexico.

More than 300,000 jobs in the U.S. alone may be eliminated by the passage of the TPP. The Wall Street Journal, in an article celebrating victory for multi-national capital, nonetheless reported that 330,000 manufacturing jobs would be lost, basing this estimate on an estimated US$56 billion increase in the national trade deficit. That forecast is based on a U.S. Department of Commerce estimate that 6,000 jobs are lost for every $1 billion of added trade deficit.

Bad news on both sides of the Pacific

The Canadian union Unifor estimates that 20,000 Canadian jobs in auto manufacturing alone are at risk from TPP. Canada will also be forced to open its dairy and poultry industries. There is fear that Canadian dairy farming may collapse and the outgoing Harper régime promised $4.3 billion to compensate farmers from expected losses.

The Australian Fair Trade and Investment Network, while acknowledging that community pressure forced governments to resist some of the most extreme measures, worries that the U.S. concession to Australia that the extension of monopolies on biological medications will be five years rather than eight will prove ephemeral. The group reports that the text “refers to eight years and to ‘other measures’ which would ‘deliver a comparable market outcome,’ and to a future review. It is not clear how this will be applied in Australia.” The U.S. will retain its 12-year exclusivity period, while other countries can choose five or eight years, so there will likely be continued pressure from pharmaceutical companies for all to adopt a longer period.

A product would not have to be produced locally to qualify as a locally made product. As much as two-thirds of an automobile’s components could be manufactured in China, for example, and it would still qualify for preferential treatment if one-third is made in any TPP signatory country. But “buy local” rules would become illegal, including for government procurement.

There are no enforceable provisions for environmental, health, safety or labor protection. Public Citizen, in its analysis of the TPP text, reports:

“The language touted as an ‘exception’ to defend countries’ health, environmental and other public-interest safeguards from TPP challenges is nothing more than a carbon copy of past U.S. free trade language that ‘reads in’ to the TPP several World Trade Organization (WTO) provisions that have already been proven ineffective in more than 97 percent of its attempted uses in the past 20 years to defend policies challenged at the WTO. In two decades of WTO rulings, [the articles purporting to protect laws necessary to protect human, animal or plant life or health] have only been successfully employed to actually defend a challenged measure in one of 44 attempts.”

The ratio under TPP is likely to be even lower as the TPP promises the most extreme rules in favor of corporations of any “free trade” deal. Even the extremely weak “exception” does not apply to the entire investment chapter of the TPP. Precedent here is bad — as the secret tribunals that decide cases brought by corporations against governments hand down their one-sided agreements, these decisions become a floor for the next decision, pushing the interpretation further in favor of corporate domination.

Democracy canceled by corporate power

Under the TPP, corporations are elevated to the level of national governments and, in practice, could be said to be elevated above governments. The TPP text mandates that “customary international law” be applied for the benefit of an “investor” — that law is not found in any statutes, but rather has been established by previous decisions of secret tribunals interpreting NAFTA and other “free trade” deals. Worse, the TPP places essentially no limits on who qualifies as an “investor” eligible to be compensated for potential profits that may not materialize due to a regulation or safety rule.

Although the rules codifying benefits for multi-national capital are written in firm language, there is no such language for protections. The Sierra Club reports that the TPP mandates that only one of the seven environmental agreements found in previous “free trade” deals be fulfilled, an alarming development as previous environmental requirements have been routinely ignored. Among the many deficiencies in the TPP, the Sierra Club said:

“Rather than prohibiting trade in illegally taken timber and wildlife — major issues in TPP countries like Peru and Vietnam — the TPP only asks countries ‘to combat’ such trade. To comply, the text only requires weak measures, such as ‘exchanging information and experiences,’ while stronger measures like sanctions are listed as options. … Rather than obligating countries to abide by [rules to] prevent illegally caught fish from entering international trade, the TPP merely calls on countries to ‘endeavor not to undermine’ [fisheries-management protocols] — a non-binding provision.”

The TPP fails to even mention the words “climate change”! More than 9,000 corporations would be newly empowered to sue governments because a law or regulation hurt their profits. Worse, the TPP would mandate that the U.S. Department of Energy automatically approve all exports of liquified natural gas to all TPP countries. This would guarantee more fracking; already under NAFTA the province of Québec has been sued in an effort to overturn its fracking moratorium. That may only be the beginning, according to

“The agreement would give fossil fuel companies the extraordinary ability to sue local governments that try and keep fossil fuels in the ground. If a province puts a moratorium on fracking, corporations can sue; if a community tries to stop a coal mine, corporations can overrule them. In short, these rules undermine countries’ ability to do what scientists say is the single most important thing we can do to combat the climate crisis: keep fossil fuels in the ground.”

You’ll have no right know what you eat

Food safety would fare no better. The TPP’s race to the bottom would require that the lowest inspection standards of any country be applied, forcing a lowering of other countries’ standards, and end protections against untested genetically modified organisms (GMOs) in your food. Food & Water Watch reports:

“The TPP includes a new provision designed to second-guess the government inspectors who monitor food imports. … The food and agribusiness industry demanded — and received — stronger [rules] that make it harder to defend domestic food safety standards from international trade disputes. … Agribusiness and biotech seed companies can now more easily use trade rules to challenge countries that ban GMO imports, test for GMO contamination, do not promptly approve new GMO crops or even require GMO labeling. The TPP gives the food industry a powerful new weapon to wield against the nationwide movement to label GMO foods. The language in the TPP is more powerful and expansive than other trade deals that have already been used to weaken or eliminate dolphin safe tuna and country of origin labels.”

Health care will also come under direct assault, forcing other countries more toward the U.S. system, under which health care is a privilege for those who can afford it rather than a human right. Government programs to hold down the cost of medications are targeted for elimination in the TPP. Doctors Without Borders/Médecins Sans Frontières, which has been sounding the alarm for years, said:

“TPP countries have agreed to United States government and multinational drug company demands that will raise the price of medicines for millions by unnecessarily extending monopolies and further delaying price-lowering generic competition. … [T]he TPP will still go down in history as the worst trade agreement for access to medicines in developing countries, which will be forced to change their laws to incorporate abusive intellectual property protections for pharmaceutical companies. For example, the additional monopoly protection provided for biologic drugs will be a new regime for all TPP developing countries. These countries will pay a heavy price in the decades to come that will be measured in the impact it has on patients.”

The text of the TPP is subject to approval by legislative bodies in various countries, and while time is limited and the approval process is streamlined to facilitate approval in several of them, the Trans-Pacific Partnership can be defeated. This is not a national issue. Working people will be hurt everywhere, with jobs disappearing in developed countries and sweatshop misery for other countries — this is why multi-national capital, where ever it is based, is pushing for the TPP. If it is to be stopped, it will be through the combined activity of activists on both sides of the Pacific. We have no time to lose.

Not even Wal-Mart is ruthless enough for Wall Street

As ruthless as Wal-Mart is, Wall Street has decided the retailer is not ruthless enough. Incredible though it might seem, financiers have been punishing Wal-Mart in part because the company has raised its minimum wage to $9 an hour.

Plans to increase slightly abysmally low pay and invest more money on Internet operations have Wall Street in an ornery mood because profits might be hurt. Is Wal-Mart Stores Inc. about to cease being a going concern? Hardly. For the first three quarters of this year, Wal-Mart has racked up a net income of US$11.8 billion — and the holiday season isn’t here yet. For the five previous fiscal years, the retailer reported a composite net income of $80.2 billion.

Alas, this isn’t good enough for Wall Street and its “what did you do for me this quarter” mentality. Traders have driven down the price of Wal-Mart stock by more than one-third in 2015, and a public statement on October 14 by the company that its earnings might be a little lower next year prompted the biggest one-day fall in its stock in 25 years.

Wal-Mart employees are joined at a rally by Reverend Billy and the Church of Stop Shopping in Vallejo, California (photo via Brave New Films)

Wal-Mart employees are joined at a rally by Reverend Billy and the Church of Stop Shopping in Vallejo, California (photo via Brave New Films)

Wal-Mart did attempt to offset that news by also announcing a new $20 billion buyback of shares, but not even blowing that kiss to financiers served to lift their moods. (A stock buyback is when a company buys its stock from shareholders at a premium to the trading price, which gives an immediate bonus to the seller and reduces the number of shares that divvy up the profits; news of this sort ordinarily sends financiers into paroxysms of ecstasy.)

This is the company that is the most ruthless in accelerating the trend of moving manufacturing to the locations with the lowest wages, legendary for its relentless pressure on its suppliers to manufacture at such low cost that they have no choice but to move their production to China, or Bangladesh, or Vietnam, because the suppliers can’t pay more than starvation wages and remain in business.

This is a 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.

We live under an economic system that is so insane that this has now been deemed by financiers to be insufficiently brutal.

The stack of billions is never high enough

How much further down can people be pushed? And when has so much money been amassed that even the most greedy are satiated? The answer to the first question has yet to be answered, but the answer to the second question seems to be “never.”

The four heirs to the Wal-Mart fortune are collectively worth $161 billion — they are the world’s richest family, richer even than the Koch brothers. The four are each, individually, among the 12 richest people on Earth. The Walton family pocket billions every year just from dividends — their company paid nearly $6.4 billion in dividends in 2014 alone, and the Walton family owns half the shares. The company spent another $6.1 billion in 2014 on buying back its stock. That’s $12.5 billion in one year handed out to financiers and the Walton family.

So it would seem that Wal-Mart could afford to pay its employees more.

Although the company said part of the pressure on profits will come from investments in building a larger Internet presence, it largely blamed its expected dip in profits on two planned boosts in pay, first to $9 an hour this year and then to $10 an hour in 2016. Reuters reported it this way:

“Wal-Mart Chief Executive Doug McMillon said a $1.5 billion investment in wages and training, including raising the minimum store wage to $10 an hour from $9, were needed to improve customer service and would account for three-quarters of the expected 6 percent to 12 percent drop in earnings per share next year.”

One and a half billion in wages and training for an unspecified period of time. Remember, this is a company that averages $16 billion in net profit per year. And in almost half the states of the U.S., mandatory minimum-wage raises would have forced stores in those states to raise the wage anyway.

Or to put this another way, the raises to $10 per hour — assuming the stated cost to the company is real — could be fully funded by cutting what the company spends on stock buybacks by one-quarter.

But it’s never Wall Street’s turn to cut back, is it?

No toleration of employee defense

Jess Levin, communications director for Making Change At Walmart, a campaign to advocate for Wal-Mart employees backed by the United Food & Commercial Workers, noted that pay raises could easily be offset by cutting hours:

“Walmart should be ashamed for trying to blame its failures on the so-called wage increases. The truth is that hard-working Walmart employees all across the country began seeing their hours cut soon after the new wages were announced. The idea that this truly drove down Walmart’s profits is a fairytale.”

What isn’t a fairy tale is Wal-Mart’s attacks on any attempt at organizing its stores. An In These Times report noted:

“A massive array of strategies has been tested, with little success: organizing department by department (when butchers at a Texas store voted for the union, Walmart eliminated all its butchers); organizing in Quebec, where laws favor unions (Walmart closed the store); organizing in strong union towns, like Las Vegas (several campaigns failed after supervisors intimidated a majority of workers out of unionizing).”

There are real-world consequences to these developments. A 2007 study by the Economic Policy Institute found that Wal-Mart alone was responsible for the loss of 200,000 U.S. jobs to China for the years 2001 to 2006, with Wal-Mart accounting for two-thirds of all U.S. manufacturing jobs lost during that period. Wal-Mart more recently has begun shifting manufacturing to countries like Bangladesh that are low-cost alternatives to China.

The Institute for Global Labour and Human Rights reports that garment workers in Bangladesh earn between 33 and 42 cents per hour, or up to $20 for a six-day, 48-hour work week. On the backs of those super-exploited workers, and on the backs of exploited store and warehouse employees, arise the fabulous wealth of the Walton family, Wal-Mart executives and financiers. Doug McMillion, the Wal-Mart chief executive officer, was paid $25.6 million for 2014 — or 24,500 times more than a Bangladeshi sweatshop worker working for a Wal-Mart subcontractor earns.

More is never enough — Wall Street is cracking its whip, demanding no letup in this massive upward flow of money. No slack is allowed. When do we stop believing this machine can be reformed?

The six-hour work day comes to Sweden

Why do we work so many hours? I mean beyond the obvious answer that the dictatorial employment relationships of capitalism force us to on pain of unemployment. Working hours declined from the inhuman work weeks of the industrial revolution until the mid-20th century, when the hours we work leveled off; in more recent years work hours have been increasing.

It certainly isn’t because productivity has plateaued. On the contrary, advances in machinery and computerization make us more productive than ever before. So why do we still work an eight-hour day after all these decades? (Or more than eight hours in many cases, and not necessarily with extra pay for office workers receiving a flat salary.) An eight-hour day was an outstanding achievement of social movements from the 19th century, when work days lasted 10 and 12 hours.

With the advancements in productivity over the years, we could certainly work fewer hours and still provide all that is necessary. Why not a six-hour day? Or less? In Sweden, there are ongoing experiments with six-hour work days, which so far have met with success. Not surprisingly, given the one-sidedness of workplace relations, these experiments are being done in the name of “greater productivity.” In other words, the standard is to be: Will this be good for the boss’ profits? That it might be good for the workers is part of the equation, but even this is commingled with the idea that rested workers will be more productive workers and thus more profitable for bosses.

Gothenburg, Sweden

Gothenburg, Sweden

Let’s first examine six-hour work days on these capitalist terms. The issue of how much productivity can be extracted out of workers, interestingly, is more explicitly stated in a test case of public workers than it is for private employers, in part due to right-wing opposition. In Gothenburg, Sweden’s second-largest city, two groups of municipal workers are part of a test in which one set will work six-hour days with full pay and the other set continues to work a standard eight-hour day. The hope is that a shorter day will reduce sick leave, boost efficiency and ultimately save money, according to a report in the Stockholm newspaper The Local. A Gothenburg deputy mayor, Mats Pilhem of the Left Party, said:

“We’ll compare the two afterwards and see how they differ. We hope to get the staff members taking fewer sick days and feeling better mentally and physically after they’ve worked shorter days.”

One group of public workers on six-hour days are nurses at an elder-care facility. This experiment is to continue until the end of 2016. Fourteen new staff members were hired to cover the lost hours, but a consultant told The Guardian that the nurses “are less stressed and have more time for the residents.” The city government is closely monitoring the experiment to see if the quality of service is higher with the six-hour work day. Nurses report having more energy at work because they are no longer exhausted from longer days of work, and a Left Party member of the Gothenburg council said quality of life for the employees should also be a consideration. He said:

“Not everything is about making things cheaper and more efficient, but about making them better. Under the Conservative-led coalition government in Sweden from 2005 to 2014 we spoke only about working more, and more efficiently — but now we want to discuss how to survive a long working life so we don’t destroy our bodies by the time we are 60.”

Not an unreasonable thought.

Private employers see benefits to shorter day

In the private sector, a Toyota service center in Gothenburg switched to a six-hour work day in 2002, with no cut in pay, and reports that its profits are up thanks to more efficient use of the center’s machinery. The Swedish Internet company Brath reports strong growth in revenue and profits using a six-hour work day. The company’s chief executive officer, Maria Bråth, believes that employees with time for the rest of their lives are more productive employees:

“That we have shorter days is not the main reason people stay with us, they are the symptom of the reason. The reason is that we actually care about our employees, we care enough to prioritize their time with the family, cooking or doing something else they love doing. … Another big benefit is that our employees produce more than similar companies do. We obviously measure this. It hasn’t happened by itself, we’ve been working on this from the start. Today we get more done in 6 hours than comparable companies do in 8. We believe it comes with the high level of creativity demanded in this line of work. We believe nobody can be creative and productive in 8 hours straight. 6 hours is more reasonable, even though we too, of course, check Facebook or the news at times.”

At the other extreme, working more than 40 hours per week is detrimental to physical and mental health. A study published earlier this year in The Lancet found that people working 55 hours per week had a 33 percent greater risk of a stroke than those who worked 35 to 40 hours per week and a higher risk of heart disease. This study analyzed more than 600,000 individuals, through data drawn from 20 studies, in several countries.

Studies conducted in the early 20th century, as the working day was progressively shortening toward the eight-hour norm, that productivity was actually greater with a shorter day. For example, the 1913 book Psychology and Industrial Efficiency by Hugo Münsterberg, regarded as a pioneer in applied psychology, summarizing the results of various factory studies, stated:

“It was found that everywhere, even abstracting from all other cultural and social interests, a moderate shortening of the working day did not involve loss, but brought a direct gain. The German pioneer in the movement for the shortening of the workingman’s day, Ernst Abbé, the head of one of the greatest German factories, wrote many years ago that the shortening from nine to eight hours, that is, a cutting-down of more than 10 per cent, did not involve a reduction of the day’s product, but an increase, and that this increase did not result from any supplementary efforts by which the intensity of the work would be reinforced in an unhygienic way. This conviction of Abbé still seems to hold true after millions of experiments over the whole globe.”

It is hardly a revelation that a tired workforce is going to make more mistakes and be subject to more accidents. The common belief by bosses that it is cheaper to force overtime on current workers, even in those cases where it must be paid when employment laws or union contracts can’t be evaded, than to hire new workers to handle increasing workloads isn’t necessarily true. Beyond the benefits to productivity or employer satisfaction, working fewer hours would be a partial compensation for pay that has badly lagged increases in productivity since the 1970s.

We produce more but don’t earn more

This pattern is persistent throughout the world. It has been in place since the early 1970s in the United States and although a more recent phenomenon elsewhere in the world’s advanced capitalist countries, workers everywhere suffer from stagnant wages while producing more. U.S. workers on average earn nearly 12 dollars per hour less than they would if wages had kept pace with productivity gains since 1973. Canadian workers earn on average 11,000 dollars per year less then they would if if wages had kept pace with productivity gains since 1980. Other studies demonstrate lags in wages versus productivity in Britain, France, Germany, Italy and Japan.

The bottom line is that we work more hours because bosses can extract more from us, even if they don’t extract as much as they believe they do when we are pushed beyond an eight-hour day. That a handful of bosses have the foresight to see that more profits can come from shorter work days does nothing to change that basic capitalist equation. Profits ultimately derive from the difference between what we are paid and the value of what we produce — the drive to increase this difference underlies both the stagnant pay of recent decades and the accelerating shifting of production, both manual and office work, to locations with ever lower wages and weaker regulations.

Graphic courtesy of Economic Policy Institute

Graphic courtesy of Economic Policy Institute

What if we worked for ourselves instead? If shorter work days are beneficial to working people — and reduce unemployment by requiring more workers to carry out necessary work — why shouldn’t this be widely implemented? So far, the discussion around the length of the working day has centered around what is best for bosses, as would be expected under capitalism. (And, make no mistake, Sweden is a capitalist country, albeit one that ameliorates some of capitalism’s harshness more than most others countries.) What if the workers ran the company themselves, or managed a public enterprise themselves?

A cooperative enterprise could similarly reduce the work day or possibly even more since it wouldn’t have to generate a large profit for a boss or, in the case of larger enterprises, for the top executives and shareholders. The steady increase in inequality, the immense fortunes held by the world’s billionaires that are far beyond any reasonable possibility of useful investment, the trillions of dollars stockpiled by multi-national corporations, and the immense waste of advertising and planned obsolescence attest to the fact that we work beyond what is necessary to meet human need.

If the economy were organized on the basis of an economic democracy — in which production is oriented toward human, community and social need rather than private accumulation of capital — the work day could reasonably be well less than eight hours. Economic democracy can be defined as where everybody who contributes to production earns a share of the proceeds — in wages and whatever other form is appropriate — and everybody is entitled to have a say in what is produced, how it is produced and how it is distributed, and that these collective decisions are made in the context of the broader community and in quantities sufficient to meet needs, and that pricing and other decisions are not made outside the community or without input from suppliers, distributors and buyers.

By no means is anything written in this article intended to be an argument against shorter, more humane working hours or higher pay today. But as such struggles intensify, as they must, they can help us move beyond reforms that somewhat lessen our exploitation to ending exploitation. If a six-hour work day is better for us, why not have more of the benefits accrue to those who do the work and to the community that supports that work?

Class war and drinking the Kool-Aid at Dow Jones

We all remember the worst job we ever had. Mine was as a re-write person on the lead financial wire service of Dow Jones in the mid-1990s. But it did give me a chance to see the workings of finance capital up close, and learn that my ideas on how it functioned really were true.

Those two unfortunate years at Dow Jones also gave me a better perspective when Rupert Murdoch swooped in a few years later to buy the company, not so much for its wire services rather for the cachet of owning The Wall Street Journal. An episode that nicely served as a humorous reminder of just what is meant by “integrity” by the idle rich — receiving the highest price.

It was difficult not to suppress a smile as the idle rich, absentee majority owners of the Journal, the Bancroft family, publicly wrestled with their bullet-proof “integrity” in the face of barbarian Murdoch. The newspapers published by Murdoch are distinguished by their mad-dog, mouth-frothing ultra-right diatribes. Not to be confused by the editorial pages of the Journal, distinguished by their mad-dog, mouth-frothing ultra-right diatribes.

There is one difference, and that is that the Journal’s mouth-frothing is done on behalf of Corporate America and is not shy about telling corporate readers what is good for them, such as its bizarre years-long campaign to return the dollar to the gold standard. The paper’s many readers who make a fortune by trading world currencies might beg to differ, but no matter. Murdoch’s papers, however, never challenge their readers’ biases and if those readers want several pages daily of celebrity gossip mixed in with the right-wing propaganda, then that is what the people will get.

You don't want to work here. (Photo by Stefan Schulze)

You don’t want to work here. (Photo by Stefan Schulze)

The Bancroft family’s celebrated “integrity,” arrayed against this hideous assault by a vulgarian, ended resoundingly when Murdoch arranged to sweeten the pot. Selling your integrity for maximum dollar — what could be more like Corporate America? And so the Journal provides us with another sound lesson in capitalist economics. The hidden Achilles heel in all this is that Murdoch paid much more for the Journal’s parent company, Dow Jones, than anybody else would, and that is for a simple reason — Dow Jones was a company remarkable for its inept management.

I know this from my personal experiences there. Just how many wire services Dow Jones actually published was not known, as nobody actually knew when I casually attempted to find out at one point, symptomatic of the place. Two spectacular failings during my two years nicely provide illustration. One of these two was the acquisition of a financial data company, Telerate, which was seen as very well run and profitable. Part of the Dow Jones egoism is that its managers are super-geniuses, and so Dow Jones replaced Telerate’s successful management with its own managers, who ran it into the ground so quickly that Dow Jones sold it seven years later for more than $1 billion less than what was paid for it. Many workers lost their jobs as well.

More adventures in management

A concurrent episode was the short-lived Dow Jones television station in New York City. The city government owned a public television station that the then mayor, Rudolph Giuliani, decided to give away at fire-sale prices. Dow Jones won it, intending to turn it into an all-business news television station, never mind that cable television already carried more than one of these. (One of which, CNBC, was blared continually in the wire service’s workplace; the horrible theme music gave me nightmares for a long time afterward although a female anchor’s on-camera tendencies to nearly break down in tears when a company’s profits went down and almost reach orgasm when profits went up did provide comic relief.)

Dow Jones management, however, wasn’t prepared for its new toy, and so upon taking over the television station, at first aired nothing but videotapes of “classic” sports games from 10 and 20 years earlier. Dow Jones hired television personnel from around the country; new hires sold their houses and moved thousands of miles to work in the new venture. Once started, it lasted four months before Dow Jones announced it was selling the station, putting all those new hires, who had so disrupted their lives, into the street. The magic of the market at work!

Episodes like this led to one of the Bancroft heirs, a thoroughly spoiled rich kid, to complain in public that her inheritance, worth tens of millions of dollars, might decline in value because the Dow Jones stock price was stuck in mud despite the 1990s stock-market bubble that was then in progress. This development, in turn, prompted that most unusual of actions at Dow Jones — a member of upper management would deign to talk to the lowly workers! Surely this was a sign of crisis.

One afternoon, we were pulled from our usual duty toiling on the electronic sweatshop to hear a pep talk in the cafeteria from none other than Chairman and Chief Executive Peter Kann. Kann would have needed an injection of personality to qualify as an empty suit, but in his own way is a sad story. Kann, at one time, was a reporter for the Journal famous for covering a war between Pakistan and India, during which he defied an order by his editor to leave the area by falsely saying there was too much static on the line for him to understand what the editor had just told him.

For him they feel sorry?

That Peter Kann was long gone. Dow Jones was distinguished by its remarkable rigidity — only those who fit an extremely narrow mold and are willing to drink the Kool-Aid if so ordered take so much as one step on the career ladder, never mind ascend to the executive ranks. And that’s in addition to the political lock-step required to survive the place. The sweatshop floor workers assembled, Kann preceded to deliver a rambling speech full of business cliches about the glorious future, but lacking any discussion of the company’s turmoil, the very reason for this unusual pep talk, as even the right-wing yuppie zombies, Dow Jones true believers who comprised most of the wire service’s workforce, understood.

None had the courage to ask a question on the topic, as I expected. It was up to me to say something — I was the shop steward for the union, disliked by management, and already trying to escape the place by becoming a freelance editor, so I had nothing to lose. Besides, I knew that most of my co-workers would be quietly counting on me to say something — virtually all conformed to the Dow Jones corporate culture of snapping your heels and running, not walking, to carry out your assignment, never allowing the slightest doubt to enter your innermost thoughts.

When Kann’s assistant asked for questions, I asked Kann what the company’s plan for stability was in light of the recent problems it had been having. I didn’t explicitly detail the serious gaffes Dow Jones had committed, but he and everyone in the room knew to what I was referring. To my genuine amazement, Kann, after a long pause, proceed to give a disjointed answer that touched on none of the issues; he was obviously seriously rattled, unable to speak coherently. After perhaps a minute of this, Kann’s assistant gently interrupted, deftly took the microphone and thanked all of us for attending, ending the meeting.

The odd coda to this was that some of the Dow Jones true believers then felt sorry for Kann, because there was pressure by shareholders to push him out of his posts due to the mismanagement. “Aw, he’ll be out soon, anyway,” one told me, genuinely feeling sorry for the dear leader. The joke was on the workforce, however, as Kann lasted another decade as head of Dow Jones, leaving it to Murdoch to satisfy his ego by overpaying for the company. The idle rich had already prospered because tens of millions of dollars per year had been funneled to them via family-only dividends and now they would cash out, by still doing nothing. Many jobs will be lost to pay for those payoffs.

A wonderful lesson in capitalist economics, and, see, there is nothing to fear from Murdoch when it comes to capitalist ethics. See you on the yacht, darling.

High-tech exploitation is still exploitation

In the so-called “sharing economy,” it isn’t the profits that are being shared. What is being shared are ways of putting old models of weakening labor protections in new “high tech” wrapping.

“Sharing economy” enterprises designating employees as “independent contractors” so that workers are left without legal protections, and undercutting competition through insisting that laws and regulations don’t apply to them, really aren’t new or “innovative.” But it’s Silicon Valley companies that are doing this — so, hurray!, it’s now exciting and, oh yes, disruptive! Quaint, archaic standards such as minimum wages and labor- and consumer-law protections are so old-fashioned that Silicon Valley billionaires are doing us all a favor by disrupting our ability to keep them.

That “sharing economy” enterprises are focal points of a new technology-stock bubble is another reason to question the hype surrounding them. While waiting for the right moment for an initial public offering, the poster child for the “sharing economy,” Uber Technologies Inc., has had no trouble attracting investors, and is now valued at US$51 billion. Not bad for a company that claims to be nothing but an app — except for when it claims to be hiring drivers when its interests dictate. (More on that below.) To put that valuation in perspective, it is higher than 80 percent of S&P 500 companies — an index selected from among the largest companies listed on U.S. stock exchanges. This for a company founded in 2009.

"Nothing is nothing" photo by Darwin Bell, San Francisco

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

How Uber’s valuation matches up with its income is impossible to say as the company does not reveal its financial results. A report in TechCrunch says that Uber may be pulling in more than $1 billion in gross receipts per year, and estimates Uber’s cut of that revenue to be about $213 million. (Uber takes a 20 percent cut from its drivers, but some drivers say it takes an additional cut for “fees”) Between its revenue and the $5 billion in funding it has received, the company could afford to hire its drivers as employees, but instead spends its money on attack advertising.

The company launched a multi-media fusillade of attack ads last month when New York City Mayor Bill de Blasio dared suggest regulations observed by others might apply to it, including a bombardment of television ads and robo-calls. (I received two. They didn’t work.) True to form, Mayor de Blasio, the Obama of New York City who is carrying out former billionaire Mayor Michael Bloomberg’s fourth term, backed down.

Uber vehemently opposed a proposed one-year cap of one percent growth in its drivers (which would have applied to all companies) despite already having more registered cars than all of the city’s yellow-cab companies combined, and in contrast to the hard cap that exists on the number of yellow-cab permits. When not attacking the mayor, Uber’s attacks were concentrated on yellow-cab companies and drivers.

Driving down wages for low-wage taxi drivers

Who are the taxi drivers whom Uber wishes you to believe are privileged and should be subjected to more competition? A New York City yellow cab driver pays the company that owns the cab $100 or more at the start of a 12-hour shift, pays for gas and is subject to consumer regulations. The driver spends the first hours of his or her shift covering these daily expenses. The New York Taxi Workers Alliance summarizes the situation for taxi drivers this way:

“Drivers are earning less and working longer, some days earning below the minimum wage. Right now, after 12-hour shifts, with no overtime pay, taxi drivers make $10-12 an hour in take home pay. More traffic and more cars competing for the same fares will drive incomes deeper into poverty levels. … In its ‘disruption’ playbook, meanwhile, Uber tells drivers to pick up illegally as a way to overwhelm local enforcement and break down regulators, and promises to pay the fines. Drivers desperate for work risk time in jail and for immigrants, loss of naturalized citizenship, while brand Uber claims innovation. Drivers are used and discarded. …

Uber seeks to decimate the regulated taxi industry and replace it with a transportation monopoly of no consumer protections and no full-time work for drivers. For Uber, drivers aren’t just Independent Contractors, they, quite frankly, are not workers at all. Why tip, or require commercial insurance or registration, or comply under federal or state transportation or labor laws when this is ‘just a side thing.’ Low Uber fares — when they are not price surging — are aimed at out-competing taxis and justified by calling the income supplemental. Taxis aren’t the only target, as they also aim their sights on dismantling public transportation, by proclaiming to be cheaper than buses in Chicago and LA and faster than an ambulance. If they gain a monopoly, the purpose of low fares will have been served and price surging will be the norm.”

The “disruption” or “innovation” that this promises is the Wal-Martization of transportation. In fact, the corporate law firm that Wal-Mart Stores Inc. used to successfully defeat a discrimination class action (Wal-Mart v. Dukes) by women employees, Gibson, Dunn & Crutcher, has been hired by Uber to fight its California drivers who say they are improperly classified as independent contractors instead of as employees. Not exactly the defender of working-class drivers Uber claims to be in its propaganda.

A San Francisco federal judge and the California Labor Commission separately ruled earlier this year that Uber drivers are employees, rulings the company continues to contest. But when it was sued for alleged text spamming, Uber claimed the messages were legal because they were hiring solicitations. But how can Uber “recruit” if it is nothing more than a software provider as it claims?

The degradation of working conditions through the “sharing economy” is of course not limited to one company. A provider of home-cleaning services, Homejoy, has closed itself rather than contest lawsuits seeking to have its “independent contractors” be re-classified as employees. Grocery-delivery service Instacart and courier Shyp have reclassified some of their workers as employees in the face of lawsuits.

A lottery economy facilitates inequality

The founders of these companies and the speculators who sink millions into them hope to be the winners in what has become a lottery economy. Only a minuscule percentage of inventions become commercially successful — a director of public affairs for the U.S. Patent & Trademark Office said a decade ago that 99.8 percent of issued patents are not commercially viable. A small number of those commercially viable ideas are worth millions or billions to its creators. This is similar to the art world, where a minuscule number of artists sell works for millions while the overwhelming majority of artists earn little or nothing.

But are the entrepreneurs who win the lottery really worth so much more than everybody else? None of these corporate lottery winners created their successful company on their own. There are engineers who design the product’s physical form, assembly-line workers who assemble the product and advertising agencies that create the demand for the product. Then there is the social structure that enabled the millionaire to become wealthy through an invention or the creation of a popular product or through rising to the top of a large corporation or simply through being a popular entertainer or athlete (although most inherited their money through luck of birth).

The mythology of the solo genius justifies massive inequality because the “solo genius” single-handedly created a popular product and thus single-handedly brought prosperity upon the land. For such selfless services, the solo genius must be compensated with fantastic wealth. But why should Facebook founder Mark Zuckerberg amass $18 billion and so many others get nothing? Why should Apple Inc. accumulate unprecedented wealth while conditions in the sweatshops that produce its gadgets are sufficiently grim to cause a wave of suicides?

Why should those who stand to make gigantic fortunes from whatever “sharing economy” enterprise is the one that wins the lottery make fortunes on the backs of working people struggling to survive?

At the end of the day, what computers and apps do is shift consumer spending from one merchant to another. The rider who uses an Uber black car is substituting that service for a taxi; the shopper who buys online is substituting for a local store. Just as Wal-Mart seeks to monopolize low-end retail, thereby sending money into the bulging wallets of the multi-billionaire Walton family instead of re-circulating the money through local spending, “sharing economy” enterprises are seeking to vacuum up as much money as possible, with speculators salivating over the potential profits.

Billionaire Silicon Valley libertarians are attempting to become wealthier at the expense of working people. That’s not disruption, that’s capitalism as usual.