The problem is fascists, not those who stand up to them

The ongoing debate of recent weeks around how, or if, to confront demonstrations of white supremacists and fascists is the latest manifestation of arguments the Left and liberals have been having for many years. For this is not simply a question of tactics but incorporates broader ideas of how we conceptualize the threat from the extreme Right.

For decades, the liberal “solution” to fascists, including marches by undisguised neo-Nazis, has traditionally been to go to the other side of town, pray and hope they go away. Critiques of antifa and other groups who courageously stood up to the white supremacists in Charlottesville, Virginia, are variations on that pacifist theme. We need do no more than refer to Cornel West’s support of “the anti-fascists, and then, crucial, the anarchists, because they saved our lives, actually. We would have been completely crushed, and I’ll never forget that.”

Raleigh-Durham IWW stands with clergy at the stairs to Emancipation Park in Charlottesville, Virginia (photo by Anthony Crider)

The problem with liberal-pacifist responses is that, if adopted, the only result would be to embolden the fascists. The white-nationalist gangs behind the Charlottesville rally unmistakably intended to intimidate. Remember that another demonstration was scheduled for Boston the following weekend and several others were planned. Instead, because they were confronted in Charlottesville, their Boston rally became a fiasco for them and appearances in other locations were called off. Communities showed what they think of them. The result for speaks for itself.

The foremost problem with liberal-pacifist responses is that it tells people they have no right to defend themselves. That should be rejected, emphatically. The violence of hate-mongers like those carrying the torches in Charlottesville and any violence that is used in defense by people who have no choice but to physically defend themselves has no equivalence. Should people have just stood there and allowed violence to be perpetrated against them and allow gangs of white supremacists and fascists to intimidate the majority — the vast majority — into silence? Do we really need to ponder this question?

Sufficient numbers in themselves stop fascists

Fighting back needn’t be physical, and generally does not need to be if there are sufficient counter-forces. I’ll draw here on two examples from late 1990s in New York City.

In the first example, a small band of neo-Nazis were running loose on Staten Island, the city’s right-wing outpost situated at a distance from the rest of the city. There were five of them, apparently inspired by a truly loathsome “novel” called The Turner Diaries, which features scenes of vast groups of people hung by Nazis during a race war. (To give you an idea of the demographics there, Donald Trump won Staten Island even though he received only 18 percent of the overall New York City presidential vote.)

A small group that I was then a member in, New York Workers Against Fascism, organized a coalition to confront the neo-Nazis. It was quickly decided to organize a series of peaceful demonstrations on the belief that a violent response would only alienate the community we were attempting to rally against the neo-Nazis. At one rally, in a park, the neo-Nazis actually showed up in uniform, across a busy street, and started giving Hitler salutes while shouting “white power.” They were simultaneously pathetic and representative of a potentially highly dangerous trend. In this instance, we had to hold back a group of anarchists from Love and Rage who wanted to charge, one of whom angrily told me “I came here to smash fascists.” I answered that today we were going to smash them peacefully. Conceding to the coalition’s consensus, he didn’t charge although he remained angry. Tactics had to be a serious consideration here.

Note the coalition did not go to another part of the island and pray the neo-Nazis would go away. In this case, a confrontation needed to be non-violent, although we did have some baseball bats hidden in case we were attacked. Fortunately, they stayed hidden as the coalition significantly out-numbered the neo-Nazis.

A few years later, a Ku Klux Klan group decided to have a rally in Manhattan. Setting aside the idiocy of them thinking they could get a foothold in a place like New York City (fascists aren’t the brightest bulbs, to put it mildly), one can’t help but wonder how they thought they could get any reception other than the one they got. Their appearance was scheduled for Foley Square, a downtown location with wide spaces. Eight of them showed up, guarded by hundreds of police officers and surrounded and heckled by about 80,000 counter-demonstrators. Yes, we outnumbered them 10,000 to one! The Klan ended its event early and were said to have received an escort by the police to the Holland Tunnel, the nearest exit from the city.

Similarly, the white supremacists were badly outnumbered in Boston last month and had to be protected from the people of Boston by rings of police and metal barricades. They had to slink home. They were successfully confronted. Not by praying they would go away but by so out-numbering them that they had to concede defeat and realize how unpopular their racism and misogyny is, even if they are highly unlikely to admit to themselves.

Communities are entitled to defend themselves

Questions of tactics, based on the immediate situation, the size of the forces on the two sides and the community being defended and/or reached out to, should predominate. Should we condemn antifa for a physical defense in light of the other outcomes discussed here? Emphatically no. The situation in Charlottesville called for such a defense, as Professor West directly said. The next time a community needs to defend against physical jeopardy, we can only hope there will be people ready to provide it.

Let’s not forget what fascists stand for. They stand not simply for hate, but for supremacy of one group over another, violence to enforce such supremacy and ultimately the annihilation of demonized peoples and groups. We all understand what fascism led to Nazi Germany.

Boston Free Speech rally counter-protesters on August 19, 2017 (photo by GorillaWarfare)

The Holocaust should not be out of our minds when fascists carrying torches march in formation chanting “Jews will not replace us.” When we think about where fantasies of white supremacy lead, such as in the apartheid systems of South Africa and the United States South of the pre-civil rights era, and in slavery, ideologies of white supremacy should not be taken lightly. When we see the results of misogyny globally, especially but far from only in régimes run by religious fundamentalists, talk of making women subordinate to men can’t be laughed off as nothing but the fantasy of losers who can’t get a girlfriend.

Liberals who don’t want to confront these threats but insist on an absolutist free-speech position, even to the point of saying we should engage with fascists, are playing with fire. You don’t “debate” people who deliver their message only with violence. You don’t debate whether one racial group if superior to another. You don’t debate whether we should adopt social forms reminiscent of Margaret Atwood’s The Handmaid’s Tale. You don’t debate whether the Holocaust happened or if there is an international Jewish conspiracy. Just as the proverbial “you can’t yell fire in a crowded theater” puts limits on free speech, advocating the annihilation of people (always conveniently different) is outside any reasonable definition of free speech. Yes, that means “no platform for fascists” — we shouldn’t apologize for such a stance, which is what the non-violent confrontations recounted above amount to.

All working people are ultimately threatened by fascist ideologies. Beyond all the reasons already discussed (more than sufficient in themselves), there is the question of who fascist movements serve. That there is no immediate danger of a fascist takeover in the United States (or almost any other global North country, Hungary and Poland excepted) does not mean we should ignore the class nature of fascism.

Who would a dictatorship serve?

As always, we should carefully distinguish between right-wing demagogues like Donald Trump (whose election is ultimately a product of decades of routine Republican Party rhetoric) and his ability to actually implement fascist rule. Once again, it might be best to see the Trump phenomenon as constituting the seeds for a potential fascist movement rather than a fully fledged fascism. That ought to be scary enough, and enough for all of us to make a stand against it. To say this is not to ignore the glaring connections between the Trump administration and white supremacists and the so-called “alt-right” (let’s retire that silly term and just call them fascists or fascist wannabes), but rather to note that most of the U.S. ruling class — industrialists and financiers — backed Hillary Clinton and not President Trump in the 2016 election.

That matters, because at its most basic level, fascism is a dictatorship established through and maintained with terror on behalf of big business. It has a social base, which provides the support and the terror squads, but which is badly misled since the fascist dictatorship operates decisively against the interest of its social base. Militarism, extreme nationalism, the creation of enemies and scapegoats, and, perhaps the most critical component, a rabid propaganda that intentionally raises panic and hate while disguising its true nature and intentions under the cover of a phony populism, are among the necessary elements, although not sufficient in themselves.

Despite national differences that result in major variations in the appearances of fascism, the class nature is consistent. Big business is invariably the supporter of fascism, no matter what a fascist movement’s rhetoric contains, and is invariably the beneficiary. For even if it is intended to benefit them, these big businessmen are giving up some of their own freedom since they will not directly control the dictatorship; it is a dictatorship for them, not by them. After using violent militias to gain power, those militias are quickly sidelined.

Hitler would never have reached power without significant material support from German industrialists. German industrialists and aristocrats, and the conservative politicians who served them, thought they could control Hitler if they put him in government. They couldn’t, but profited enormously as wages for German workers declined sharply and were enforced by labor codes that even a Nazi paper once said were “reminiscent of penal codes.” It was little different in Mussolini’s Spain or Franco’s Spain or Pinochet’s Chile.

Think it can’t happen in your country? It can. Any country dominated by the capitalist system is at risk of fascism because fascism is capitalism with all the democratic veneers stripped away, when capitalists come to believe they can’t continue to rule and maintain profits any other way. That fascist groups, even the Nazi Party, start out as small bands of deluded misfits lashing out at scapegoats because they don’t have the intellectual capacity to understand the world they live in, in no way alters this picture.

Better to definitively defeat fascist grouplets now, before they have any chance of becoming tools. Anti-fascist organizers are doing humanity a service, whether peacefully counter-demonstrating or using more militant tactics such as those of antifa.

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Creating a participatory system of economic democracy in Rojava

Out of repression has emerged one of the world’s most interesting experiments in democracy. And by democracy, what is meant is not the formal capitalist variety of elections every few years in which consumption of consumer products is substituted for participation in societal decisions.

Surrounded on all sides by hostile forces intent on destroying them, in a part of the world that Western pundits claim can only be ruled by dictators, the Kurds of Syria are intent on creating a society more democratic than any found in North America or Europe. This is not simply a matter of creating institutions of direct and communal, as opposed to representative, democracy but, most importantly, democratizing the economy. In the words of the imprisoned Kurdish leader Abdullah Öcalan, “In self-government, an alternative economic system is necessary, one that augments the resources of society rather than exploiting them, and in that way satisfies the society’s multitude of needs.”

The many sides of that equation are explored in detail in Revolution in Rojava: Democratic Autonomy and Women’s Liberation in Syrian Kurdistan,* a study of Rojava’s experiment in radical democracy by three activists who spent months in Rojava studying the society being constructed, and who themselves have been involved in Rojava in various capacities. One of the authors, Anja Flach, spent two years in the Kurdish women’s guerrilla army. Her co-authors are Ercan Ayboga, an environmental engineer, and Michael Knapp, a historian. Although the three authors make clear their sympathies for the Rojava revolution, their book is not hagiographic, but rather a serious analysis of a developing process.

The Kurdish people are split among four countries — Iran, Iraq, Syria and Turkey — and have long suffered persecution in each of them. Their persecution in Turkey is well known; successive Turkish governments have attempted to disrupt organizing, obliterate Kurdish culture and ban the Kurdish language through waves of lethal military crackdowns. Mr. Öcalan escaped Turkey after a military coup that led to hundreds of thousands of Kurds thrown into jail; he and the Kurdistan Workers Party (PKK) he leads were granted asylum in Syria. In the late 1990s, under Turkish pressure, Syria expelled the PKK, and a year later, Mr. Öcalan was abducted from a Greek consulate (a kidnapping believed to be a CIA operation) and has been imprisoned in Turkey since.

But that the Syrian régime found the PKK a useful lever against Turkey for a time did nothing to ameliorate ruthless repression against the Kurds of northern Syria. The Ba’ath Party of the Assad family implemented a policy of “Arabization” against Kurds and the other minority groups of the areas now comprising Rojava. Kurds were routinely forcibly removed from their farm lands and other properties, with Arabs settled in their place. Bashar al-Assad, in contrast to the misplaced hopes that he might institute a thaw upon succeeding his father in 2000, instituted a harsh neoliberalism. Mass privatization, suppression of unions, the shredding of the social safety net and a channeling of investment capital into tourism and away from production had a particularly devastating impact on Rojava.

After the uprisings in Syria against the Ba’ath régime began in 2011, the struggle quickly became militarized. The Kurds avoided being overrun by the Syrian army or the various Islamist forces because of their own organization. Grassroots organizing had been done steadily since the 1990s, and when local government collapsed following the 2011 uprisings, that organizing, a nascent council system and the formation of militias enabled the carving out of an autonomous territory. People surrounded government buildings, demanding the surrender of all arms while guaranteeing the safe passage of all Syrian government officials. This tactic worked, quickly sweeping through all three “cantons” of Rojava. (A canton is a portion of a province, perhaps bigger than a U.S. county or French department but smaller than a U.S. state or a French region.)

The aim here was to create a democratic territory through peaceful means. This takeover was accomplished nearly without bloodshed, although Rojava’s militias have had to repeatedly repulse attacks from Islamic State, al-Qaeda and other hostile forces, as well as fend off the sometimes active hostility of the Turkish government, which has allowed Islamic State terrorists to freely cross the border and re-arm themselves. Sadly, Rojava has also been subjected to periodic blockades and political harassment from the two corrupt parties that control Iraqi Kurdistan, which borders Rojava to the east.

The system of democratic autonomy

The basic units of Rojava’s organization are councils and commissions. These constitute the building blocks of Rojava’s system of “democratic confederalism.” The authors of Revolution in Rojava explain this concept in this way:

“Democratic Confederalism aims at achieving the autonomy of society, that is, a society that administers itself through small, self-governing decentralized units. It entails a permanent social revolution, reflected in every aspect of social structure. All institutions are self-organized and self-administered.” [page 44]

Concurrent with that concept is “democratic autonomy,” which is defined as “the autonomy of the commune” in an “anti-centrist, bottom-up approach.” The commune is the basic unit of self-government, the base of the council system. A commune comprises the households of a few streets within a city or village, usually 30 to 400 households. Above the commune level are community people’s councils comprising a city neighborhood or a village. The next level up are the district councils, consisting of a city and surrounding villages. The top of the four levels is the People’s Council of West Kurdistan, which elects an executive body on which about three dozen people sit. (“West Kurdistan” is the portion of Kurdistan that lies within Syria.)

Integrated within the four-level council system are eight commissions — women, defense, economics, politics, civil society, free society, justice and ideology — that work with councils at all four levels; in turn commissions at local levels coordinate their work with commissions in adjacent areas. There is also a ninth commission, health, responsible for coordinating access to health care (regardless of ability to pay) and maintaining hospitals, in which medical professionals fully participate. Except for the women’s commission, all bodies have male and female co-leaders.

Taking with upmost seriousness the full liberation of women (also expressed in the all-women’s militias that fight on the front lines the same as men’s units), the women’s commissions are tasked, inter alia, with adjudicating cases of patriarchal violence and forced marriage. An umbrella women’s movement organizes women across Rojava, taking on activities including educational work, publishing a newspaper, pushing for legislation, and investigating and documenting domestic violence. This work has roots in the 1990s, when PKK women organized door to door. When organizing by men was heavily suppressed after 2004, women organized clandestinely, giving them experience.

Making women’s participation central is of course a glaring contrast with the Islamist groups and the so-called moderate groups of the Free Syrian Army. Every organization in Rojava must include at least 40 percent women. Asya Abdullah, co-chair of the Democratic Party of Kurdistan, Rojava’s largest party, said the revolution is conscious of not repeating the mistakes of the past, in which women’s liberation was often put on the back-burner. She said:

“We’re a still long way from achieving our goals. … But we’ve learned from the failed revolutions in the past. They always said, ‘Let’s carry the revolution to success, and then we’ll give women our rights.’ But after the revolution, of course, it didn’t happen. We’re not repeating that old story in our revolution.” [page 70]

Creating a new justice system

As with many governmental functions, the judicial system has had to be rebuilt from scratch. Peace committees seek consensus through dialogue at the commune and neighborhood levels. The goal is rehabilitation rather than punishment. Most cases are settled in peace committees, but felonies and those cases not adjudicated in the peace committees are assigned to district-level people’s courts. There are separate women’s peace committees that handle cases of male violence against women in which all-women panels hand down decisions.

Parallel to these systems of democratic self-activity is the Democratic-Autonomous Administration. This is essentially a dual government, created primarily for foreign governments. Because Rojava’s councils have been ignored elsewhere, the DAA was created so that world’s governments would have a government they could recognize. Each of three Rojava cantons has a DAA, which includes an elected parliament and ministries that are distributed among the various political parties so that each has at least one minister. These, however, rely on the earlier-established council system and work with the councils. The division of labor between the councils and the DAA has yet to be worked out, nor how to reconcile a dual-government structure.

Civil society associations also play large roles in Rojava. These groups perform educational work, organize grassroots activity and place representatives on the councils. Many of these associations are occupation groups. In contrast to what the Kurdish movement sees as the state existing as a means of extracting profits for favored social groups or classes and inculcating a fixation on authority, civil society is substituted for a state. The authors write:

“The Kurdish movement, in its anti-statism, thus draws on [Antonio] Gramsci’s concept of civil society in proposing to strengthen civil society for the purpose of overthrowing the state. In contrast to the abortive Bolshevist strategy of seizing state power, Öcalan posits, like Gramsci on the ideological, political struggle for civil society, a ‘war of position’ beyond military confrontation. Through empowerment, a civil society tries to free itself from the hands of the state and its religious, economic and administrative structures and so to build a counter-hegemony and to activate individual parts of the society to represent civil society in councils and communes.” [pages 122-123]

Economic development on a democratic basis

This democratic concept extends to the economy. Food and fuel prices are controlled, working conditions are negotiated among several interest groups, workers’ rights are defended and the pursuit of profit maximization is blocked to avoid the destructive tendencies of capitalism. The principals of the “communal economy” are described in this way by the Union of Civil Society Associations:

“The state system exploited the society’s labor power and trampled the rights of workers. Under Democratic Autonomy, civil society associations solve problems according to principles of moral politics and an ecological society. The unity of society is the foundation. These associations hold society together. They ensure the unity that is needed to satisfy everyday social needs. Of course, they do this as part of democratic, communal life. They are how society organizes itself.” [page 124]

Rojava, the authors write, was a “quasi-colony” under the Ba’ath régime. There was an enforced agricultural monoculture with no local production allowed. Oil, gas and agricultural products were shipped out, and canned food and finished products from elsewhere shipped in. Not even trees were allowed to be planted. So although there is much productive farmland, Rojava could not come close to self-sufficiency in food as all farmers were forced to raise wheat or cotton. Farming is now being re-oriented toward local needs so that a much higher percentage of food can be produced locally; this is partly a necessity as the area is often blockaded by neighbors.

The city of Qamishli in Syrian Kurdistan

The councils, already in existence, organized the economy to prevent a collapse after Rojava’s liberation. Price controls, measures against hoarding food and medicine, agricultural diversification, planting fruit trees, and building grain mills and industry were implemented and are ongoing projects. Rojava’s economic underdevelopment is seen locally as a disadvantage and an opportunity. It is the latter because, the authors write, it “allows the traditional social collectivism of the Kurdish people to be channeled positively to build a new, alternative economy.” [page 197]

Much of this new economy rests on cooperative enterprises. Cooperatives are required to be connected to the council system; independence is not allowed. Cooperatives work through the economics commissions to meet social needs. Much of this cooperative production is in agriculture or small shops but there are plans to create more industry to meet local needs. Thirty percent of all coop proceeds must be given to local self-government administrations. And this is seen as a route to eliminating unemployment. The authors write:

“The cooperative system is solving the problem of unemployment. ‘Through the communes and cooperatives and the needs-based economy,’ explains [Afrin University chair] Dr. [Ahmad] Yousef, ‘each person can participate in production in his own way, and there will be no unemployment. Where communes are established, it will become clear that unemployment is a result of the capitalist system itself.’ ” [page 206]

Such a system can’t work without an educated population:

“To ensure that society is able to make decisions about the use of water, soil, and energy, information about the society’s needs are taken out of the hands of the experts and socialized. Education is critical for this purpose. ‘We school the people in how cooperatives can form a social economy,’ says [Union of Kurdish Communities leader Cemil] Bayık. ‘We are establishing economics academies to advance this.’ ” [page 207]

Surrounded by a hostile world

All this is at odds not only with the existing institutions and state organizations surrounding them, but with the capitalist powers as well. How can Rojava’s experiment possibly survive in a such a hostile world? The authors of Revolution in Rojava strongly urge the building of Left support sufficiently strong to influence North American and European governments. The people of Rojava, the authors stress, are in need of material support from the West at the same time they are acutely aware of the dangers of a U.S. embrace.

The idea that Rojava’s acceptance of Western aid is a “betrayal” is called “naïve” by the authors, drawing parallels with Republican Spain of the 1930s. Describing Rojava as an “anti-fascist project,” they note that the capitalist West turned its back on the Spanish Revolution, allowing fascism to triumph.

The danger of U.S. material support, of course, can’t be underestimated, given that a communal economy oriented toward people’s needs rather than private profit is anathema to U.S. corporate and government power, which have teamed up to throttle many a revolution attempting to transcend capitalism or simply assert independent development. Moreover, the U.S. wrongly classifies the PKK, which seeks to implement the same system as their fellow Kurds in Syria, as “terrorists” and has long supported Ankara’s scorched-earth repression of Kurds.

In the short term, material support from the West is needed if Rojava is to successfully defend itself from Islamic militants and the Turkish government. Syrian (and Turkish) Kurds, who see their model as one that can be expanded across Syria and the entire Middle East, have their eyes open to the narrowness of the path that must be thread through these contradictions. Nor are their eyes closed to their unsolved problems of pollution, water, waste management, and the stop-gap use of diesel generators that is causing serious environmental problems.

The book ends on an optimistic note, readapting Rosa Luxemburg’s famous phrase to declare the future is “communalism or barbarism.” Although brief discussions of Thomas Jefferson, Luxemburg and Gramsci (who was no opponent of the Bolsheviks) are poorly argued and their views misstated, this is at most a minor irritant in a work ably presenting the first comprehensive study of Rojava’s inspiring experiment in mass-participation democracy. Revolution in Rojava is an excellent introduction to a revolution that is not yet well known but should be.

* Ercan Ayboga. Anja Flach and Michael Knapp (translated by Janet Biehl), Revolution in Rojava: Democratic Autonomy and Women’s Liberation in Syrian Kurdistan [Pluto Books, London 2016]

The cost of not having single payer: $1.4 trillion per year

You could not devise a worse health care system than that of the United States if you tried. By far the most expensive, with among the worst results.

Perhaps saying “among” the worst results is being too kind. That is an accurate statement if we are simply measuring metrics such as mortality rates and other medical outcomes. But if we consider that tens of millions of United Statesians go without health insurance while none do in any advanced capitalist country (or most any other) — and that tens of thousands annually die because of that lack — then we must reasonably assess the U.S. health care system as the worst.

This is the high cost of private profit in health care. How much? The United States spends more than $1.4 trillion per year than it would otherwise if it had a single-payer system. Such is what happens when a service is left in the hands of the private sector, and allowed to be bent toward profit rather than human need.

To calculate that figure, I took the average per capita health care spending of the three largest EU countries — France, Germany and the United Kingdom — and the neighbor of the U.S., Canada, and compared that average to U.S. per capita spending. The composite average for Britain, Canada, France and Germany for the years 2011 to 2016 is $4,392 per capita per year, converted to U.S. dollars adjusted to create purchasing power parity as reported by the Organisation for Economic Cooperation and Development (OECD). Per capital health care spending in the U.S. for 2011 to 2016 averaged $8,924 — more than twice as much! Taking that difference and multiplying by 317 million, the average U.S. population for the five-year period, and the total annual excess comes to $1.44 trillion.

That excess has been steadily increasing. Doing these same calculations for earlier periods found that for the period of 2001 to 2010, the annual average of excess spending was $1.15 trillion. The annual average for the period of 1990 to 2000 was $685 billion.

For 2016, the OECD reports that only nine of the 35 countries surveyed spent more than half of what the U.S. spent on health care, and the second highest spender, Switzerland, spent $2,000 less per capita than did the United States.

Can this astounding amount of spending be accounted for by more health care? Nope. The average length of a hospital stay in U.S. in 2014 was 5.5 days, seventh shortest of 35 countries surveyed by the OECD. The average hospital stay in each of the four core comparison countries (Britain, Canada, France and Germany) was longer — a composite average of 7.6 days.

Paying more for less

So it really comes down to inferior results. The U.S. does well in combating cancer, but poorly in almost every other category of health care measurement. And people in the U.S. pay dearly for the privilege of health care, if they are lucky enough to have access to it. The cost of health insurance continues to rise, and the amount a patient must pay out of pocket before insurance kicks in (the “deductible” in U.S. lingo) is also steadily rising as employers push more of the cost of health insurance on to their employees.

Phillip Longman, discussing this issue for Popular Resistance, wrote:

“Indeed, the inflating cost of health care is the overwhelming reason why most Americans haven’t received a raise in years, and why employers increasingly make use of contract workers rather than taking on new employees that would receive benefits. This year, the total annual cost of health care for a typical family of four covered by a typical employer-sponsored plan surpassed $25,000, according to the actuarial research firm Milliman. Such a family will typically pay more than $11,000 of this cost directly out of its own pockets, through payroll deductions, copayments, and deductibles. They will also pay much more indirectly in foregone wages and other forms of compensation, and quite possibly more yet in the form of unemployment, as employers seek to escape their share of the mounting cost of providing health care for their employees.”

And because health care is dependent on maintaining a full-time job, bosses have more leverage over their employees, who will lose their insurance should they quit their job. Women with lower-paying work or staying at home to raise a family are also put at greater risk as health insurance for themselves and children are tied to their husband’s job, making it more difficult to leave a bad marriage. This dynamic could also apply to any one person in a non-traditional family or within a gay or lesbian household.

Thus it comes as little surprise that the United States is one of two countries in the world that do not provide paid maternity leave for women workers. Hope to get it at work? Good luck with that — only 9 percent of companies offered fully paid maternity-leave benefits to workers in 2014, down from 16 percent in 2008. By contrast, at least two-thirds of countries have mandatory maternity pay for at least 14 weeks, according to an International Labour Organization report.

You might not have it so good, but that is the price to be paid for high profits. An analysis by Forbes magazine found that health technology had the highest profit margin of any of 19 broadly defined industrial sectors, at 20.9 percent, topping even finance, the second highest. Three of the biggest companies — Pfizer, Merck & Co. and Johnson & Johnson — had profit margins of 25 percent or higher. When a separate study broke down profit margins by smaller, more specific industry categories, health care-related industries were three of the six most profitable. Generic pharmaceuticals topped the list, with a margin of 30 percent. Major pharmaceuticals and biotechnology were also among the top six.

Keeping people sick as a business model

The piles of money vacuumed into pharmaceutical pockets do not sit entirely idle. Big Pharma lavishes vast sums on doctors, state Medicaid officials and regulators to promote their products. Studies have shown that doctors who have received payments from pharmaceutical companies are more likely to prescribe those companies’ medications. But pharmaceutical companies go far beyond wining and dining doctors, or paying them speaking fees. They organize “patient advocacy” groups that pretend to be grassroots organizations. An investigative health reporter, Martha Rosenberg, writes that these front groups fly in “patients” to hearings to ask for expensive drugs to be fast-tracked for approval.

Expensive drugs that have to be taken for years, or even a lifetime, create a business model that “actually wants people sick,” Ms. Rosenberg writes. She says:

“ ‘Mental illness’ is a category deliberately ‘grown’ by Pharma with aggressive and unethical million-dollar campaigns. These campaigns, often unbranded to look like a public service, convince people with real life challenges they are ‘depressed’ or ‘bipolar’ and that their children have ADHD. Despite the Pharma marketing, the New England Journal of Medicine recently reported that the rate of severe mental illness among children and adolescents has actually dropped dramatically in the past generation.”

All this adds up to a 2011 study in the journal Health Policy that ranked the U.S. last in preventing early deaths. Attributing this result to “the lack of universal coverage and high costs of care,” the Commonwealth Fund noted:

“The United States placed last among 16 high-income, industrialized nations when it comes to deaths that could potentially have been prevented by timely access to effective health care. … [O]ther nations lowered their preventable death rates an average of 31 percent between 1997–98 and 2006–07, while the U.S. rate declined by only 20 percent, from 120 to 96 per 100,000. At the end of the decade, the preventable mortality rate in the U.S. was almost twice that in France, which had the lowest rate—55 per 100,000.”

An OECD report found that life expectancy in the U.S. is two years less than the average of OECD countries, a gap that is growing. That statistic isn’t improving at either end of life, as U.S. infant mortality rates are considerably higher than in peer countries. A report prepared by the Peterson Center on Healthcare and the Kaiser Family Foundation explicated this poor performance:

“The U.S. has been slower to improve its infant mortality rate than comparable countries, which we define as countries whose gross domestic products (GDP) and per capita GDP were above average in at least one of the past 10 years. While the infant mortality rate in the U.S. improved by about 13 percent from 2000-2013, the comparable country average improved about 26 percent, according to data from the Organization for Economic Cooperation and Development.

U.S. infant mortality rates appear to be about 42 percent higher than the comparable country average. Looking into specific measures of infant mortality, it also appears that the U.S. has about 66 percent more neonatal deaths (deaths which occur less than 28 days after birth) than the comparable country average. From 2000 to 2013, neonatal deaths decreased by 13 percent in the U.S. and by 23 percent in comparable OECD countries.”

What’s good for big business is good for big business

With such dismal results, why does such a furious campaign continue to insist on privatized health care? Ideology, of course. Ideology no different than that propagated to insist that government is always bad and private enterprise always better. But government doesn’t have to earn a profit; private enterprise expects to and will pack its bags if it doesn’t. Just as privatization invariably results in higher costs and often poorer quality than when the service was provided by a government agency as a public good, health care is provided far more efficiently when in public hands.

Noting that “high administrative costs and lower quality have also characterized for-profit HMOs” (health maintenance organizations funded by insurance premiums that supervise health care), a Journal of the Canadian Medical Association article provides the following figures for the percentage of revenue that is diverted to overhead:

  • For-profit HMOs: 19 percent
  • Non-profit plans: 13 percent
  • U.S. Medicare program: 3 percent
  • Canadian Medicare: 1 percent

Ideology drives the Trump administration and the Republican-controlled Congress to have no problem with adding more than 20 million people to the ranks of the uninsured by attempting to reverse the weak-tea, incremental improvement of Barack Obama’s Affordable Care Act. This is not different from Donald Trump’s chimeric $1 trillion infrastructure program, which is a scam that commits his administration to zero dollars while showering corporations with massive subsidies that would supposedly magically induce private infrastructure investment.

That extra $1.4 trillion paid for health care in the United States is the result of a system designed to deliver corporate profits rather than health care. It’s the “magic of the market” at work. It just isn’t magic for you. In a concise explanation on the Real-World Economics Review Blog, Peter Radford explains:

“Markets, you see, are wonderlands that always and inevitably lead to efficient outcomes. And it is no good any starry eyed liberal tinkering with those outcomes. They are magically correct. By correct we mean that they cannot be improved upon. Economists have this vice like attachment to certain core beliefs. One of those is that, if left unfettered, markets will zero in on an allocation of stuff that can never be improved, especially by meddlesome governments.

The way you get to this particular promised land is by letting the great forces of supply and demand batter away at individual preferences and budgets until all the trading and so on ends with no one able to make another trade without such a trade making someone else worse off. It sounds wonderful. Now to make this all work we have to believe in magic. We have to suspend our intelligence and imagine a world where everyone knows exactly what everyone else is doing, where no one cheats, where everyone is marvelously rational, where they don’t suddenly change their minds, where they can calculate at the speed of light, absorb vast amounts of data, and always — yes always — arrive at precisely that combination of stuff they wanted. Within the constraints of their budget of course.”

Sarcastic, yes, but that is a summation of what passes for economic orthodoxy nowadays. Markets always magically result in fair and just results for all, and any actions by government automatically damage this miraculous machine. And therefore health care should be left in the hands of corporations with as little regulation as possible. And therefore the U.S. is a country in which 22,000 people die and 700,000 go bankrupt per year as a result of inadequate, or no, health insurance in the United States. That’s one of the prices of capitalism.

A climatic baby step forward beats a leap backward

The world surely is approaching a danger point when the abrogation of an inadequate agreement is cursed as a disaster. The Paris Climate Summit goals can’t be characterized as anything significantly better than feel-good window dressing, but the argument that the world has to start somewhere is difficult to challenge. Better to take a baby step forward than a leap backward.

As always, we must ask: Who profits? The Trump administration’s decision to withdraw from the Paris Accord is due to factors beyond Donald Trump’s astounding ignorance and his contempt for science or reality. There is a long history of energy company denial of global warming, a well-funded campaign.

Never mind that a widely cited 2015 study by the Stockholm Resilience Center, prepared by 18 scientists, found that the Earth is crossing several “planetary boundaries” that together will render the planet much less hospitable. Or that two scientific studies issued in 2015 suggest that so much carbon dioxide already has been thrown into the air that humanity may have already committed itself to a six-meter rise in sea level. Or that the oceans can’t continue to act as shock absorbers — heat accumulated in them is not permanently stored, but can be released back into the atmosphere, potentially providing significant feedback that would accelerate global warming.

Coral reefs damaged by warming seas in the Maldives (photo by Bruno de Giusti)

So strongly has public opinion swung on global warming that even Exxon Mobil and Royal Dutch Shell joined a vast array of multi-national corporations decrying the Trump withdrawal, leaving the United States as one of only three countries outside the Paris Accord. Exxon Mobil claims to support the agreement and is “well positioned to compete” under its terms. A measure of skepticism over this recent conversion is forgivable. Exxon has spent more than $33 million on denying global warming from 1997 to 2015, according to DeSmog, a total believed to be an underestimate. DeSmog summarized these findings this way:

“Despite its advanced knowledge of the climate disruption fueled in large part by oil, gas and coal pollution, ExxonMobil turned its back on crafting responsible solutions and instead funded a sophisticated campaign to sow doubt and delay action to curb carbon emissions — honing the tobacco industry’s playbook with even more advanced public relations, advertising and lobbying muscle.”

A separate DeSmog report says that Exxon corporate documents from the late 1970s unequivocally declare “there is no doubt” that carbon dioxide from the burning of fossil fuels was a growing problem well understood within the company. Inside Climate News reports that Exxon confirmed the science on global warming by the early 1980s while publicly mocking those models for decades beyond.

Tobacco is good for you and so is a warming planet

Such denialism is alive and well. A leading global warming denialist lobbying outfit, the Heartland Institute, had this to say about the withdrawal from the Paris Accord: “Angela Merkel and what is left of the E.U. are not happy (itself a victory), but fake science and globalism would take a big hit with this move.” So childish it could have been written by Donald Trump himself! Lavishly funded by Exxon, the Heartland Institute originally was a propaganda outfit for the tobacco industry, going so far as to deny the health effects of second-hand smoke.

Then there is NERA Consulting, which the Trump administration cited in its announcement of the Paris withdrawal. The White House statement claimed that “meeting the Obama Administration’s requirements in the Paris Accord would cost the U.S. economy nearly $3 trillion over the next several decades” and has already cost six million industrial jobs. Among other problems with this phantasmagoria is that none of the commitments of the Paris Accord have actually been implemented. Thus it is difficult to determine how the accord caused those jobs to disappear.

What is NERA Consulting? It describes itself as “firm of experts” that provides economic analysis to corporate clients. DeSmog reports that NERA has repeatedly, sometimes anonymously, issued reports on behalf of coal, liquified natural gas and other energy corporations that claim wildly inflated job and/or economic costs. Media Matters for America reports that a NERA report attacking the U.S. Environmental Protection Agency’s carbon pollution standards “has been thoroughly debunked by multiple experts” on multiple grounds, including failure to acknowledge any economic benefits. The NERA report was explicitly prepared for several energy-industry lobbying groups.

Earlier, NERA was involved in lobbying for the tobacco industry; a vice president said the tobacco industry should aim to explain the health “benefits” of smoking.

The Koch brothers, Charles and David, are also active funders of global warming denialism, and the two stand to profit enormously from the Alberta tar sands. The Koch brothers 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 Kochs 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.

Polar warming outpaces warming elsewhere

It is not a long distance from the Alberta tar sands to the Arctic, where global warming is particularly pronounced. Consistent with predictions that the polar regions would experience the sharpest rise in temperatures, the Arctic is 3.5 degrees Celsius warmer than it was at the beginning of the 20th century with the region’s sea surface temperatures up to 5 degrees higher than the 1982 to 2010 average. Much worse could be on the way, the U.S. National Oceanic and Atmospheric Administration warns in its 2016 Arctic Report Card:

“Warming air temperatures in the Arctic are causing normally frozen ground (permafrost) to thaw. The permafrost is carbon rich and, when it thaws, is a source of the greenhouse gases carbon dioxide and methane. Northern permafrost zone soils contain 1330-1580 billion tons [of] organic carbon, about twice as much as currently contained in the atmosphere. Tundra ecosystems are taking up increasingly more carbon during the growing season over the past several decades, but this has been offset by increasing carbon loss during the winter. Overall, tundra appears to be releasing net carbon to the atmosphere.”

Long before the release of such quantities of carbon throw the climate out of control, permafrost melting has begun to alter the Canadian Arctic’s environment in worrisome ways. In an article for Inside Climate News, Bob Berwyn writes:

“Huge slabs of Arctic permafrost in northwest Canada are slumping and disintegrating, sending large amounts of carbon-rich mud and silt into streams and rivers. A new study that analyzed nearly a half-million square miles in northwest Canada found that this permafrost decay is affecting 52,000 square miles of that vast stretch of earth—an expanse the size of Alabama. According to researchers with the Northwest Territories Geological Survey, the permafrost collapse is intensifying and causing landslides into rivers and lakes that can choke off life downstream, all the way to where the rivers discharge into the Arctic Ocean.”

At the other end of the Earth, Antarctic temperatures are up to 3 degrees C. higher since the 1950s and they could increase an additional 5 degrees by the end of the century.

So what happens if the increase in greenhouse gases continues indefinitely? Possibly, global warming unprecedented for more than 400 million years. A study by researchers at Britain’s University of Southampton and University of Bristol, and Wesleyan University in the U.S., reports that if all readily available fossil fuel is burned, by the mid-23rd century atmospheric carbon dioxide concentrations would be around 2,000 parts per million — levels not seen since 200 million years ago. Lead author Gavin Foster said:

“However, because the Sun was dimmer back then, the net climate forcing 200 million years ago was lower than we would experience in such a high CO2 future. So not only will the resultant climate change be faster than anything Earth has seen for millions of years, the climate that will exist is likely to have no natural counterpart, as far as we can tell, in at least the last 420 million years.”

If all the Earth’s ices melted (which they would at such levels of warming and carbon dioxide release), sea level would rise more than 60 meters (more than 200 feet).

Paris commitments well short of Paris goals

At the conclusion of the Paris Climate Summit, the world’s governments say they agreed to hold the global temperature increase to 1.5 degrees Celsius, but in actuality committed to nearly double that. Nor is there any enforcement mechanism; all goals are voluntary. The summit, officially known as the 21st Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change, or COP 21, anticipates peer pressure will encourage signatories “to reach global peaking of greenhouse gas emissions as soon as possible” and then “undertake rapid reductions thereafter.”

The Paris goals are based on the Intergovernmental Panel on Climate Change (IPCC) report issued in 2014, which foresees a rise in greenhouse-gas emissions for years to come, to above 450 parts per million, before falling to 450 ppm by 2100, which the report says is necessary to hold the global temperature rise to 2 degrees. Unfortunately, the IPCC report relies on several technological breakthroughs, including capture and sequestration of carbon dioxide, which are not yet close to being feasible.

The now discarded U.S. goal had been to reduce greenhouse-gas emissions by 26 to 28 percent in 2025, relative to 2005 levels. The European Union, Brazil, Canada, Japan, India and Australia have committed to cutting their greenhouse-gas emissions by anywhere from 26 percent (Japan) to 40 percent (EU) by 2030. China didn’t commit to a specific cut but said it would reach a peak in its greenhouse-gas emissions by 2030. The EU goals have an additional barrier, however — the British government under Theresa May has been working hard to significantly weaken draft EU climate and energy rules, including efficiency standards, even though the rules wouldn’t take effect until after Brexit.

A critical weakness of the assumptions underlying these goals is that the IPCC panel is asserting is that the cost of bringing global warming under control will be negligible, less than 0.1 percent annually during the course of the 21st century. No more than a blip noticed only by statisticians. There need be no fundamental change to the world’s economic structures — we can remain on the path of endless growth.

The Earth, alas, does not possess infinite resources. Certainly there should be a continued push toward the use of renewable energy sources in place of fossil fuels. But the idea that “green capitalism” will magically solve the problems of capitalism is a chimera. There is no way around the need to consume less and align production to human need rather than private profit. Capitalism won’t offer people displaced from dirty industries new jobs, and if the only option someone has to feed their family is take a job in the oil sands or in a coal mine, it is pointless to blame those workers. Then there is the “grow or die” dynamic imposed on capitalists through relentless competitive pressures. As Fred Magdoff and John Bellamy Foster, in their book What Every Environmentalist Needs to Know About Capitalism, write:

“ ‘Green capitalism,’ even if products are produced using the utmost environmental care and designed for easy reuse, offers no way out of a system that must expand exponentially and thus continue to ratchet up its use of natural resources, its chemical pollution, its contaminated sewage sludge, its garbage, and its many other toxic substances. Some of these ‘fixes’ will probably slow down the rate of environmental destruction, but the magnitude of the needed changes dwarfs these approaches.” [page 120]

There are no free lunches. Doing what is necessary to keep the climate from going out of control, with catastrophic consequences, will require more economic disruption than the IPCC acknowledges. But the price of continuing business as usual will be much higher. Our descendants are not likely to see short-term corporate profits a fair exchange for a less livable world.

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!

How do we build a movement?

Politely walking into pens set up by police, shaking our signs and gently dispersing will not build a movement serious about root-and-branch change. Even the more militant demonstrations, in which people — gasp! — actually take the streets in defiance of authorities, both legal and NGO, are far from sufficient.

This is not to say that we shouldn’t demonstrate. Nor is it to say that demonstrations aren’t important and necessary. They are. Demonstrations are important (including the semi-official large-scale walks in which government officials are moved to participate) because they signal popular anger, activate people by showing others that there are millions who think similarly, and serve as a potentially invaluable organizing tool.

Rally on Nevsky Prospekt in St. Petersburg after the February Revolution of 1917 (Source: State museum of political history of Russia)

But demonstrations don’t, and can’t, change anything by themselves. They don’t touch the system and threaten no one in power. This is especially so when they are “one-off” events. Remember that it was only two autumns ago that an estimated 400,000 people marched through the streets of New York City in defense of the environment. There were street actions in the financial district the next day, ones that were permitted to go on for much the day because it would have been too embarrassing for the gentrification mayor, Bill de Blasio, the Obama of New York, to have openly suppressed it one day after he marched in the big Sunday stroll.

But, then — nothing. The energy generated by the march evaporated; it might as well not have happened. It didn’t help that march organizers raised no demands, much less attempted to connect global warming and environmental destruction with economic issues. Organizing a march simply to generate media attention is a dead-end strategy.

A steady crescendo of demonstrations and marches certainly are part of any serious movement. But petitioning leaders to do better for working people yields meager gains. There are structural issues here: When Bill Clinton, Barack Obama, Jean Chrétien, Tony Blair, Gordon Brown, Francois Hollande, Gerhard Schröder, José Luis Rodríguez Zapatero, Matteo Renzi and Alexis Tsipras follow the same path, then a condemnation of personality doesn’t provide explanations.

There are no saviors. We will have to save ourselves. And we won’t save ourselves without organization or commitment.

Fighting on all fronts

An unused tool does nothing. A tool used properly multiplies force. A serious movement needs a full toolbox and not simply one tool.

Such a toolbox can only be wielded by cohesive organizations welding together movements in broad alliances that provide scope for people with specific issues and oppressions to advance their goals simultaneous with rooting these in larger understandings of the structural causes of them and the systemic crises that must be tackled. The days of telling people that you need to wait your turn and, anyway, your oppression will be solved once we have a revolution need to be definitively over. On the other hand, splintering into a myriad of groups working only on specific issues in isolation from one another is a guarantee of ineffectiveness.

Nor is it necessary to choose between “identity politics” and “class politics.” We need to fight on all fronts, using both what is relevant from past struggles and new tactics and strategies reflecting contemporary understandings arising out of current conditions. Nor should it be an obligation to accept or reject organizational structures simply because they are old or new. There are vast gradations between those who believe we should just replicate whatever Vladimir Lenin did and those who believe we should spend three hours a night in open-air assemblies.

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

Practice without theory amounts to running around in circles with no effectiveness. Theory without practice is arm-chair pontificating. Only a synthesis of theory and practice can propel a movement forward to effective action. That synthesis does not fall out of the sky.

Theory derives from examining our experiences, both in our everyday lives and in movement work, and developing ideas out of these in opposition to the dominant propaganda — ideas that can be translated into concrete actions. Effective action, in turn, is impossible without organization.

In her thoughtful paper, “Ideas for the Struggle,” Marta Harnecker writes that the example of successful revolutions demonstrates that a “political instrument” capable of a national struggle and based on current, concrete conditions is essential. She argues that people who believe that strong organizations are something to be avoided because many parties of the past engaged in authoritarian or manipulative political practices should not be trapped in the past. She writes:

“I believe it is fundamental for us to overcome this subjective barrier and understand that when we refer to a political instrument, we are not thinking about any political instrument; we are dealing with a political instrument adjusted to the new times, an instrument that we must build together. … We are talking about understanding politics as the art of constructing a social and political force capable of changing the correlation of force in favor of the popular movement, to make possible in the future what today appears impossible. We have to think of politics as the art of constructing forces. We have to overcome the old and deeply-rooted mistake of trying to build a political force without building a social force.”

Changing the world means taking power

We can ignore the state all we want; the state will not ignore us if we mount any challenge to present-day orthodoxy. Nor will the new age concept of “changing ourselves” lead to any social change. If we want a better world, that entails eventually taking power. As Vivek Chibber recently put it at the “Global Resistance in the Neoliberal University” conference: “A politics that doesn’t try to take power isn’t politics — it’s just talking.”

The task, however, not only is immense but must be conducted on multiple levels, Ms. Harnecker writes:

“[W]e must develop a process of popular construction opposed to capitalism in the territories and spaces won by the left, that seeks to break with the profit logic and the relations this imposes and tries to instill solidarity-based humanist logics. We must promote struggles that are not limited to simple economic demands — although these need to be included — but that advance the development of a more global, social project that encourages authentic levels of power from the grassroots.”

And what form should a “political instrument” take? These need not take any specific form — and in pluralistic societies are likely to encompass multiple forms. Yet if building an effective movement that is sustainable, institutionalizes memory through integrating past experiences and aims toward a transformation of society, a party is necessary, argues Jodi Dean. In her 2016 book Crowds and Party, she argues that Leftists who want to create a better world have to get past their criticisms of the party form, and not become trapped in their own self-critique or allow critiques of specific parties to become a universal rejection of the party form.

This argument is made in the context of analyzing why Occupy so quickly dissipated. The birth of a movement such as Occupy should represent a beginning, not an end. A spontaneous outburst of popular action, such as Occupy, is often seen as an end in itself. Such spontaneity needs a permanent form for meeting the challenge of maintaining a movement. Professor Dean argues that those who mistake an opening for the end,

“treat organization, administration, and legislation as a failure of revolution, a return of impermissible domination and hierarchy rather than as effects and arrangements of power, rather than as attributes of the success of a political intervention. The politics of the beautiful moment is no politics at all. Politics combines the opening with direction, with the insertion of the crowd disruption into a sequence or process that pushes one way or another. There is no politics until a meaning is announced and the struggle over this meaning begins.”

New forms of organization

This does not mean a party is the only organizational form. Nor does it have to mean that a single party will, or can, express the full range of demands of a broad movement or represent all shades of opinion, especially given the divide that will likely persist for some time between those who begin with a goal of fundamental transformation and those who advocate reforms. Given the pluralism of most countries, including all advanced capitalist countries (not to mention the complexity of modern life), the formation of multiple parties should be seen as healthy.

A successful movement will inevitably be a coalition; the political expressions of this should be coalitions as well. Popular-front types of organization, movement coalitions organized to achieve specific goals while allowing participating groups to express their particular perspectives, are forms likely to be necessary to create the sufficient scale of activists needed to effect advances.

A multitude of popular organizations, reflecting not only the differing sites of struggle but the necessarily different types of struggle, will come into being. These need not be permanent, although some will be. Self-organized councils or assemblies of workers sustaining an enterprise occupation or sit-in strike is but one form; neighborhood organizations uniting into bodies representing larger spaces of geography, advocacy groups and the creation of liberated zones are among others.

New types of unions could be still another form. Staughton Lynd, in his recently updated book Solidarity Unionism: Rebuilding the Labor Movement from Below, argues that present-day unions are “institutional dinosaurs, resembling nothing so much as the corporations we are striving to replace.” He advocates shop-floor committees that organize around grievances and problems rather than negotiating contracts and that use direct action, even in opposition to union leaders, and “parallel central labor bodies” that organize workers in a geographic region, across industries. New labor organizations should be built on solidarity, he writes:

“[B]y building organizations based on solidarity, rather than on bureaucratic chain-of-command, we build organizations that by their very existence help to bring a new kind of society into being.”

As with any other organization created to address specific problems, sustaining effectiveness will be impossible without linking the specific problems to other issues and in turn linking related issues to larger structural critiques. The enormous institutional advantages that industrialists and financiers possess through their ability to exert decisive influence over governments, their domination of the mass media, the disposal of police and military forces at their service, and ability to infuse their preferred ideologies through a web of institutions present enormous challenges. This is a hegemony that must be broken, and won’t be broken until a critical mass of people come to understand the excuses that buttress all this for the self-serving ideology that it is.

Breaking hegemony through alternative examples

Laurence Cox and Alf Gunvald Nilsen, in their 2014 book We Make Our Own History: Marxism and Social Movements in the Twilight of Neoliberalism, argue that the work of breaking this hegemony necessitates defeating the state, breaking up at least some power relations and instituting new ones, but doing so through the masses, not a vanguard.

Mural paintings in honor of Jecar Neghme of Chile’s MIR in the place where he was killed by the Pinochet government. (Credit: Ciberprofe)

As no movement, organization or leader has a monopoly of ideas, Professors Cox and Nilsen envision a “movement of movements”: The coming together of independent movements without the intention of submitting to the leadership of any single party or of privileging narrow definitions of working class interests. This necessitates not only learning from one another to increase the body of knowledge that can be drawn upon but also learning from the past. They write:

“These situations share a potential for human self-development to flourish beyond the normal limits set by exploitation, oppression, ignorance and isolation, creating institutions driven by human need rather than by profit and power. … These ‘everyday utopias’ do not need to be installed from above by decree; what they do need is a breaking of power relations within communities, workplaces, state institutions and globally, which stand in their way.”

Nothing of human creation lasts forever. Capitalism, despite the frantic scribblings of apologists for inequality, is no more immune from this than previous forms of economic and social relations. What will replace it is up to all of us. Given that infinite growth is impossible on a finite planet, that hard-won reforms are temporary in a system of massive and pervasive power imbalances, that no permanent solutions are available in a system that is dependent on its most powerful institutions (large corporations) being able to offload all responsibility for pollution and other social problems on society, and that inequality, endless growth, global warming and pollution are necessary byproducts for the system to function at all, limits will be reached.

If this is the last century of capitalism, what will replace it? It could be something worse — some combination of high-tech fascism imposed on feudal arrangements in which a minuscule minority uses extreme force to hoard the world’s dwindling resources for itself is not only not out of the question, but the likely response of a capitalist elite that will stop at nothing to maintain itself. In the continued absence of organized resistance across borders, that may well be the future. Or a better world can be created, through organized struggle, that is based on fulfilling human need within environmentally sustainable practices in which everybody has a say in how their enterprise functions and in larger political and social decisions.

One day, people have had enough

These words are being written on the 100th anniversary of the start of the February Revolution in Russia. Let’s take a moment to reflect on that momentous event, which toppled an absolute monarch who ruled as a direct representative of God and whose every word was indisputable law. A monarchy that had no hesitation in shooting down protestors in the hundreds or thousands, where the overwhelming majority lived in unspeakable poverty and illiteracy.

Women protest in St. Petersburg on International Women’s Day, 1917

More than 300,000 Petrograd workers took part in strikes during the seven weeks immediately preceding the February Revolution, during which time three major demonstrations were planned, and mutinies spread throughout the army. The tsarist régime responded with lockouts of factory workers, shootings of strikers by the police and army, and mass arrests.

But on one day in 1917 (March 8 in the Gregorian calendar not yet in use in Russia), tens of thousands of women textile workers in Petrograd (as St. Petersburg was then called) walked out. The women walked to nearby metal factories, told the men there to join them on strike, and both groups inspired workers in other factories to walk out. More struck the next day. The day after that, a general strike was under way in Petrograd, with demonstrators shouting anti-war and anti-monarchy slogans. Within a week, the tsar abdicated.

Years of tireless work paid off. As I wrote in my book It’s Not Over: Learning From the Socialist Experiment:

“One more strike, one additional action following hundreds of actions, one action that on the day it began did not seem noticeably different from previous actions, put the revolution in motion. Why this one? It is impossible to say. Perhaps all that can be said is that on that particular day, enough Russians, or at least enough Petrograd women and men, were sufficiently exasperated to do something about it. The February Revolution is an excellent example of the necessity of continuing to struggle: It is usually impossible to predict which spark will be the one to catch fire. The revolutionaries were surprised by the revolution, and perhaps that could not have been otherwise. But the revolution would not have happened without their work.”

Russians had ceased to believe the ideologies that kept their society in place. Similarly, our task today is to explode the mythologies that undergird our current world. This is a big task, but one that is indispensable, Henry Giroux writes:

“Central to a viable notion of ideological and structural transformation is a refusal of the mainstream politics of disconnect. In its place is a plea for broader social movements and a more comprehensive understanding of politics in order to connect the dots between, for instance, police brutality and mass incarceration, on the one hand, and the diverse crises producing massive poverty, the destruction of the welfare state, and the assaults on the environment, workers, young people and women. …

[P]rogressives must address the crucial challenge of producing cultural apparatuses such as alternative media, think tanks and social services in order to provide models of education that enhance the ability of individuals to make informed judgments, discriminate between evidence based arguments and opinions, and to provide theoretical and political frameworks for rethinking the relationship between the self and others based on notions of compassion, justice, and solidarity.”

And as a reminder that we need to take care of each other, because struggle is such hard work, it’s appropriate to offer a quote from Mark Fisher, who recently left this world all too prematurely:

“Emancipatory politics must always destroy the appearance of a ‘natural order,’ must reveal what is presented as necessary and inevitable to be a mere contingency, just as it must make what was previously deemed to be impossible seem attainable.”

Good words to remember, even if many of us won’t be around long enough to see a better world come into being. Struggle we must, regardless. I don’t wish for the following words to be reduced to cliché because they are uttered so often (including by me), but the choice for the future remains socialism or barbarism. Let us be worthy of our task.

The bait and switch of public-private partnerships

This being the age of public relations, the genteel term “public-private partnership” is used instead of corporate plunder. A “partnership” such deals may be, but it isn’t the public who gets the benefits.

We’ll be hearing more about so-called “public-private partnerships” in coming weeks because the new U.S. president, Donald Trump, is promoting these as the basis for a promised $1 trillion in new infrastructure investments. But the new administration has also promised cuts to public spending. How to square this circle? It’s not difficult to discern when we recall the main policy of the Trump administration is to hand out massive tax cuts to big business and the wealthy, and provide them with subsidies.

Public-private partnerships are one of the surest ways of shoveling money into the gaping maws of corporate wallets, used, with varying names, by neoliberal governments around the world, particularly in Europe and North America. The result has been disastrous — public services and infrastructure maintenance is consistently more expensive after privatization. Cuts to wages for workers who remain on the job and increased use of low-wage subcontractors are additional features of these privatizations.

Chicago at night (photo by Lol19)

Chicago at night (photo by Lol19)

The rationale for these partnerships is, similar to other neoliberal prescriptions, ideological — the private sector is supposedly always more efficient than government. A private company’s profit incentive will supposedly see to it that costs are kept under control, thereby saving money for taxpayers and transferring risk to the contractor. In the real world, however, this works much differently. A government signs a long-term contract with a private enterprise to build and/or maintain infrastructure, under which the costs are borne by the contractor but the revenue goes to the contractor as well.

The contractor, of course, expects a profit from the arrangement. The government doesn’t — and thus corporate expectation of profits requires that revenues be increased and expenses must be cut. Less services and fewer employees means more profit for the contractor, and because the contractor is a private enterprise there’s no longer public accountability.

Public-private partnerships are nothing more than a variation on straightforward schemes to sell off public assets below cost, with working people having to pay more for reduced quality of service. A survey of these partnerships across Europe and North America will demonstrate this clearly, but first a quick look at the Trump administration’s plans.

Corporate subsidies, not $1 trillion in new spending

The use of the word “plans” is rather loose here. No more than the barest outline of a plan has been articulated. The only direct mention of his intentions to jump-start investment in infrastructure is found in President Trump’s campaign web site. In full, it states the plan “Leverages public-private partnerships, and private investments through tax incentives, to spur $1 trillion in infrastructure investment over ten years. It is revenue neutral.” The administration’s official White House web site’s sole mention of infrastructure is an announcement approving the Keystone XL and Dakota Access pipelines without environmental reviews, and an intention to expedite environmental reviews for “high priority infrastructure projects.”

Wilbur Ross, an investment banker who buys companies and then takes away pensions and medical benefits so he can flip his companies for a big short-term profit, and who is President Trump’s pick for commerce secretary, along with a conservative economics professor, Peter Navarro, have recommended the Trump administration allocate $137 billion in tax credits for private investors who underwrite infrastructure projects. The two estimate that over 10 years the credits could spur $1 trillion in investment. So the new administration won’t actually spend $1 trillion to fix the country’s badly decaying infrastructure; it hopes to encourage private capital to do so through tax cuts.

The Sea-to-Sky Highway in British Columbia (photo by D. Vincent Alongi)

The Sea-to-Sky Highway in British Columbia (photo by D. Vincent Alongi)

There is a catch here — private capital is only going to invest if a steady profit can be extracted. Writing in the New Republic, David Dayen put this plainly:

“Private operators will only undertake projects if they promise a revenue stream. You may end up with another bridge in New York City or another road in Los Angeles, which can be monetized. But someplace that actually needs infrastructure investment is more dicey without user fees. So the only way to entice private-sector actors into rebuilding Flint, Michigan’s water system, for example, is to give them a cut of the profits in perpetuity. That’s what Chicago did when it sold off 36,000 parking meters to a Wall Street-led investor group. Users now pay exorbitant fees to park in Chicago, and city government is helpless to alter the rates.”

The Trump plan appears to go beyond even the ordinary terms of public-private partnerships because it would transfer money to developers with no guarantee at all that net new investments are made, according to an Economic Policy Institute analysis. The EPI report asks several questions:

“[I]t appears to be a plan to give tax credits to private financiers and developers, period. The lack of details here are daunting and incredibly important. For starters, we don’t know if the tax credit would be restricted to new investment, or if investors in already existing [public-private partnerships] are eligible for the credit. If private investors in already existing PPP arrangements are eligible, how do we ensure these tax credits actually induce net new investments rather than just transferring taxpayer largesse on operators of already-existing projects? Who decides which projects need to be built? How will the Trump administration provide needed infrastructure investments that are unlikely to be profitable for private providers (such as building lead-free water pipes in Flint, MI)? If we assume tax credits will be restricted (on paper, anyhow) to just new investment, how do we know the money is not just providing a windfall to already planned projects rather than inducing a net increase in how much infrastructure investment occurs?”

Critiques of this scheme can readily be found on the Right as well. For example, Douglas Holtz-Eakin, a former head of the Congressional Budget Office and economic adviser to John McCain’s 2008 presidential campaign, told The Associated Press, “I don’t think that is a model that is going be viewed as successful or that you can use it for all of the infrastructure needs that the U.S. has.”

Corporations plunder, people pay in Britain

Britain’s version of public-private partnerships are called “private finance initiatives.” A scheme concocted by the Conservative Party and enthusiastically adopted by the New Labour of Tony Blair and Gordon Brown, the results are disastrous. A 2015 report in The Independent reveals that the British government owes more than £222 billion to banks and businesses as a result of private finance initiatives. Jonathan Owen reports:

“The startling figure – described by experts as a ‘financial disaster’ – has been calculated as part of an Independent on Sunday analysis of Treasury data on more than 720 PFIs. The analysis has been verified by the National Audit Office. The headline debt is based on ‘unitary charges’ which start this month and will continue for 35 years. They include fees for services rendered, such as maintenance and cleaning, as well as the repayment of loans underwritten by banks and investment companies.

Responding to the findings, [British Trades Union Congress] General Secretary Frances O’Grady said: ‘Crippling PFI debts are exacerbating the funding crisis across our public services, most obviously in our National Health Service.’ ”

Under private finance initiatives, a consortium of private-sector banks and construction firms finance, own, operate and lease the formerly public property back to the U.K. taxpayer over a period of 30 to 35 years. By no means do taxpayers receive value for these deals — and the total cost will likely rise far above the initial £222 billion cost. According to The Independent:

“The system has yielded assets valued at £56.5bn. But Britain will pay more than five times that amount under the terms of the PFIs used to create them, and in some cases be left with nothing to show for it, because the PFI agreed to is effectively a leasing agreement. Some £88bn has already been spent, and even if the projected cost between now and 2049/50 does not change, the total PFI bill will be in excess of £310bn. This is more than four times the budget deficit used to justify austerity cuts to government budgets and local services.”

The private firms can even flip their contracts for a faster payday. Four companies given 25-year contracts to build and maintain schools doubled their money by selling their shares in the schemes less than five years into the deals for a composite profit of £300 million. Clearly, these contracts were given at well below reasonable cost.

City of London expanding (Photo by Will Fox)

City of London expanding (Photo by Will Fox)

One of the most prominent privatization disasters was a £30 billion deal for Metronet to upgrade and maintain London’s subway system. The company failed, leaving taxpayers with a £2 billion bill because Transport for London, the government entity responsible for overseeing the subway, guaranteed 95 percent of the debt the private companies had taken out. Then there is the example of England’s water systems, directly sold off. The largest, Thames Water, was acquired by a consortium led by the Australian bank Macquarie Group. This has been disastrous for rate payers but most profitable to the bank. An Open University study found that, in four of the five years studied, the consortium took out more money from the company than it made in post-tax profits, while fees increased and service declined.

As for the original sale itself, the water companies were sold on the cheap. Although details of the business can be discussed by “stakeholders,” the authors conclude, the privatization itself remains outside political debate, placing a “ring-fence” around the issues surrounding the privatization, such as the “politics of packaging and selling households as a captive revenue stream.” The public has no choice when the water provider is a monopoly and thus no say in rates.

Incredibly, Prime Minister Theresa May and the Tories intend to sell off more public services to Macquarie-led consortiums.

Corporations plunder, people pay across Europe

Privatization of water systems has not gone better in continental Europe. Cities in Germany and France, including Paris, have taken back their water after selling systems to corporations. The city of Paris’ contracts with Veolia Environment and Suez Environment, expired in 2010; during the preceding 25 years water prices there had doubled, after accounting for inflation, according to a paper prepared by David Hall, a University of Greenwich researcher. Despite the costs of taking back the water system, the city saved €35 million in the first year and was able to reduce water charges by eight percent. Higher prices and reduced services have been the norm for privatized systems across France, according to Professor Hall’s study.

German cities have also “re-municipalized” basic utilities. One example is the German city of Bergkamen (population about 50,000), which reversed its privatization of energy, water and other services. As a result of returning those to the public sector, the city now earns €3 million a year from the municipal companies set up to provide services, while reducing costs by as much as 30 percent.

The Grand Palais in Paris (photo by Thesupermat)

The Grand Palais in Paris (photo by Thesupermat)

Water is big business. Suez and Veolia both reported profits of more than €400 million for 2015. Not unrelated to this is the increasing prominence of bottled water. Bottled water is dominated by three of the world’s biggest companies: Coca-Cola (Dasani), PepsiCo (Aquafina) and Nestlé (Poland Springs, Deer Park, Arrowhead and others). So it’s perhaps not surprising that Nestlé Chairman Peter Brabeck-Letmathe infamously issued a video in which he declared the idea that water is a human right “extreme” and that water should instead have a “market value.”

One privatization that has not been reversed, however, is Goldman Sachs’ takeover of Denmark’s state-owned energy company Dong Energy. Despite strong popular opposition, the Danish government sold an 18 percent share in Dong Energy to Goldman Sachs in 2014 while giving the investment bank a veto over strategic decisions, essentially handing it control. The bank was also given the right to sell back its shares for a guaranteed profit. Goldman Sachs has turned a huge profit already — two years after buying its share, Dong began selling shares on the stock market, and initial trading established a value for the company twice as high as it was valued for purposes of selling the shares to Goldman. In other words, Goldman’s shares doubled in value in just two years — a $1.7 billion gain.

Danes have paid for this partial privatization in other ways as well. Taking advantage of the control granted it, Goldman demanded lower payments to Danish subcontractors and replaced some subcontractors who refused to use lower-paid workers.

Corporations plunder, people pay in Canada

Canada’s version of public-private partnerships has followed the same script. A report by the Canadian Centre for Policy Alternatives flatly declared that

“In every single project approved so far as a P3 in Ontario, the costs would have been lower through traditional procurement if they had not inflated by these calculations of the value of ‘risk.’ The calculations of risk could just as well have been pulled out of thin air — and they are not small amounts.”

Not that Ontario is alone here. Among the examples the Centre provides are a hospital, Brampton Civic, that cost the public $200 million more than if it had been publicly financed and built directly by Ontario; the Sea-to-Sky Highway in British Columbia that will cost taxpayers $220 million more than if it had been financed and operated publicly; bailouts of the companies operating the city of Ottawa’s recreational arenas; and a Université de Québec à Montréal project that doubled the cost to $400 million.

A separate study by University of Toronto researchers of 28 Ontario public-private partnerships found they cost an average of 16 percent more than conventional contracts.

Corporations plunder, people pay in the United States

In the United States, a long-time goal of the Republican Party has been to privatize the Postal Service. To facilitate this, a congressional bill signed into law in 2006 required the Postal Service to pre-fund its pension costs for the next 75 years in only 10 years. This is unheard of; certainly no private business would or could do such a thing. This preposterous requirement saddled the Postal Service with a $16 billion deficit. The goal here is to weaken the post office in order to manufacture a case that the government is incapable of running it.

The city of Chicago has found that there are many bad consequences of public-private partnerships beyond the monetary. In 2008, Chicago gave a 75-year lease on its parking meters to Morgan Stanley for $1 billion. Shortly afterward, the city’s inspector general concluded the value of the meter lease was $2 billion. Parking rates skyrocketed, and the terms of the lease protecting Morgan Stanley’s investment created new annual costs for the city, according to a Next City report.

Haze from forest fires in St. Mary Valley, Glacier National Park. Republicans are targeting national parks for sale, too. (photo by Pete Dolack)

Haze from forest fires in St. Mary Valley, Glacier National Park. Republicans are targeting national parks for sale, too. (photo by Pete Dolack)

That report noted that plans for express bus lanes, protected bike lanes and street changes to enhance pedestrian safety are complicated by the fact that each of these projects requires removing metered parking spaces. Removing meters requires the city to make penalty payments to Morgan Stanley. Even removals for street repairs requires compensation; the Next City report notes that the city lost a $61 million lawsuit filed by the investment bank because of street closures.

Nor have water systems been exempt from privatization schemes. A study by Food & Water Watch found that:

  • Investor-owned utilities typically charge 33 percent more for water and 63 percent more for sewer service than local government utilities.
  • After privatization, water rates increase at about three times the rate of inflation, with an average increase of 18 percent every other year.
  • Corporate profits, dividends and income taxes can add 20 to 30 percent to operation and maintenance costs.

Pure ideology drives these privatization schemes. The Federal Reserve poured $4.1 trillion into buying bonds, which did little more than inflate a stock-market bubble, while the investment needs to rebuild U.S. water systems, schools and dams, plus cleaning up Superfund sites and eliminating student debt, are less at a combined $3.4 trillion. What if that Federal Reserve money had gone to those instead?

“Public investment to create private profit”

Given its billionaire leadership, the Trump administration’s plans for public-private partnerships will not lead to better results, and may well be even worse. Michael Hudson recently summarized what is likely coming in this way:

“Mr. Trump wants to turn the U.S. economy into the kind of real estate development that has made him so rich in New York. It will make his fellow developers rich, and it will make the banks that finance this infrastructure rich, but the people are going to have to pay for it in a much higher cost for transportation, much higher cost for all the infrastructure that he’s proposing. So I think you could call Trump’s plan ‘public investment to create private profit.’ That’s really his plan in a summary, it looks to me.”

This makes no sense as public policy. But it is consistent with the desire of capitalists to continually extract higher profits from any and all human activity. Similar to governments handing over their sovereignty to multi-national corporations in so-called “free trade” deals that facilitate the movement of production to locales with ever lower wages and weaker laws, public-private partnerships represent a plundering of the public sector for private profit, and government surrender of public goods. All this is a reflection of the imbalance of power in capitalist countries.

This is “the market” in action — and the market is nothing more than the aggregate interests of the most powerful industrialists and financiers. It also reflects that as capitalist markets mature and capital runs out of places into which to expand, ongoing competitive pressures will drive corporate leaderships to reduce expenses (particularly wages) and move into new lines of business. Taking over what had been the public sector is one way of achieving this, especially if public goods can be bought below fair market value and guarantees of profits extracted.

The ruthless logic of capitalism is that a commodity goes to those who can pay the most, regardless of whether it is something essential to human life.