Yes I know I said light posting for the next couple of weeks, but two articles have crossed my path which bear attention.
The first is an article from a couple weeks ago at Salon: Are The American People Obsolete? The author makes a compelling case that the elites have broken the social contract between themselves and the rest of us, and that they no longer need us:
Have the American people outlived their usefulness to the rich minority in the United States? A number of trends suggest that the answer may be yes.
In every industrial democracy since the end of World War II, there has been a social contract between the few and the many. In return for receiving a disproportionate amount of the gains from economic growth in a capitalist economy, the rich paid a disproportionate percentage of the taxes needed for public goods and a safety net for the majority.
In North America and Europe, the economic elite agreed to this bargain because they needed ordinary people as consumers and soldiers. Without mass consumption, the factories in which the rich invested would grind to a halt. Without universal conscription in the world wars, and selective conscription during the Cold War, the U.S. and its allies might have failed to defeat totalitarian empires that would have created a world order hostile to a market economy.
Globalization has eliminated the first reason for the rich to continue supporting this bargain at the nation-state level, while the privatization of the military threatens the other rationale.
The offshoring of industrial production means that many American investors and corporate managers no longer need an American workforce in order to prosper. They can enjoy their stream of profits from factories in China while shutting down factories in the U.S. And if Chinese workers have the impertinence to demand higher wages, American corporations can find low-wage labor in other countries.
This marks a historic change in the relationship between capital and labor in the U.S. The robber barons of the late 19th century generally lived near the American working class and could be threatened by strikes and frightened by the prospect of revolution. But rioting Chinese workers are not going to burn down New York City or march on the Hamptons.
What about markets? Many U.S. multinationals that have transferred production to other countries continue to depend on an American mass market. But that, too, may be changing. American consumers are tapped out, and as long as they are paying down their debts from the bubble years, private household demand for goods and services will grow slowly at best in the United States. In the long run, the fastest-growing consumer markets, like the fastest-growing labor markets, may be found in China, India and other developing countries.
This, too, marks a dramatic change. As bad as they were, the robber barons depended on the continental U.S. market for their incomes. The financier J.P. Morgan was not so much an international banker as a kind of industrial capitalist, organizing American industrial corporations that depended on predominantly domestic markets. He didn't make most of his money from investing in other countries.
In contrast, many of the highest-paid individuals on Wall Street have grown rich through activities that have little or no connection with the American economy. They can flourish even if the U.S. declines, as long as they can tap into growth in other regions of the world.
. . .
If much of America's investor class no longer needs Americans either as workers or consumers, elite Americans might still depend on ordinary Americans to protect them, by serving in the military or police forces. Increasingly, however, America's professional army is being supplemented by contractors — that is, mercenaries. And the elite press periodically publishes proposals to sell citizenship to foreigners who serve as soldiers in an American Foreign Legion. It is probably only a matter of time before some earnest pundit proposes to replace American police officers with foreign guest-worker mercenaries as well.
Offshoring and immigration, then, are severing the link between the fate of most Americans and the fate of the American rich. A member of the elite can make money from factories in China that sell to consumers in India, while relying entirely or almost entirely on immigrant servants at one of several homes around the country. With a foreign workforce for the corporations policed by brutal autocracies and non-voting immigrant servants in the U.S., the only thing missing is a non-voting immigrant mercenary army, whose legions can be deployed in foreign wars without creating grieving parents, widows and children who vote in American elections.
If the American rich increasingly do not depend for their wealth on American workers and American consumers or for their safety on American soldiers or police officers, then it is hardly surprising that so many of them should be so hostile to paying taxes to support the infrastructure and the social programs that help the majority of the American people. The rich don't need the rest anymore.
The second article comes from the Guardian: Jobless millions signal death of the American dream for many. It is one of the few pieces in any news organ I've seen anywhere that actually considers what happens to people when their unemployment benefits run out. We hear a lot about this happening, but as far as the monopoly media are concerned, these people seem to just disappear into some kind of void where they do not even show up in statistics.
America appears to be a society splitting down the centre, shattering the middle class that long formed the cultural bedrock of the country and dividing it into a country of haves and have-nots. "A once unthinkable level of economic distress is in the process of becoming the new normal," warned Nobel-prize winning economist Paul Krugman in a recent New York Times column. Or, as Steven Green, an economics lecturer at Baylor University, put it to the Observer: "We are really in a tough spot right now."
There is a new name for those falling down the black hole of joblessness that has opened up in America's economy. They are the 99ers.
It is a moniker that no one wants. It refers to the 99 weeks of benefits that the jobless can qualify for in America. Government cash helps those laid off keep a tenuous grip on a normal life. It keeps a roof over their heads, pays a phone bill, puts food on a table and petrol in a car. But once the 99 weeks are up the payments stop — as is happening now for millions of people — and they are 99ers.
For many, that moment, which America's politicians have refused to extend, represents the moment of destitution; a sort of modern American version of the old Victorian trip to the workhouse. There are now more than a million 99ers and the number gets bigger each week.
But who are they? Despite Republican attempts to paint them as feckless or job-shy, they are usually anything but. The 99ers are people like Anne Strauss, 58, who spent 35 years working as a PR professional on Long Island. Despite spending every day hunting for work, she has not had a job since June 2008. She and her husband are now living on credit cards watching debts mount as they stare into the abyss. "Looking for a job is the hardest I have ever worked," she said with a smile that conveyed no humour or happiness, only the deep stress that is common to many 99ers.
Strauss, along with about 50 other 99ers, protested on Wall Street last week, demanding an extension of the benefits that could keep them out of poverty. As bankers and financiers strode into the flag-draped Stock Exchange they chanted: "Shame! Shame!" and told their stories. It was a litany of middle-class lives shattered by the recession. There was Connie Kaplan, a corporate librarian who was desperate to resume her career. "We are not bums, we are hardworking," she said. Or Lori Ghavami, a New Jersey financial analyst in her 30s, who had once worked on Wall Street itself and now was staring at landlords' bills she was scared she could not pay. Or New Yorker Steven Bilarbi, 62, who had worked for the same employer for 37 years, until 2007. He has not worked since, despite refusing to spend daytime hours at home and engaging in a permanent job hunt. He is now living off savings and depleting his pension.
"I go to job fairs. I don't feel like staying home. What would I do? Watch game shows and soap operas?" he fumed.
Meeting 99ers is to tap into a deep well of anger at lives that have been knocked off course, shattering the enduring vision of the American dream that many had felt they had achieved. Just take Donna Faiella, a 53-year-old New Yorker who lives alone in Queens. She spent 28 years working in film post-production and video-editing. She was successful and had a career. Now she is desperate for a job, any job. But she cannot find one. "I will do anything. I will sweep floors. You think I look forward to collecting unemployment? It is fucking degrading," she said, almost quivering with anger.
Faiella is in dire trouble. Joblessness has eaten away at her sense of identity. "I feel like we are worthless. We are lost in the world. I don't know what to call myself. I don't have a title any more. What do we do? What do we do?" she implored. Faiella has one week of benefits to go. Then her 99 weeks will be up. She will have a title again. But not one she expected. She will be a 99er. "I am petrified. Do I become homeless?" she said, adding that she has begun making inquiries at local shelters.
Emphasis mine.
The current recession is the continuation of the Reagan-Thatcher "free trade" regime first begun in the early 1980s. "Free trade" is the euphemism that describes the process of hollowing out the United States economy — and this of course is necessary if global wealth is to be further concentrated into the hands of an ever-smaller inner circle.
The Guardian article explains very well the position in which we find ourselves. The Great Recession of the late '00s has been a major step forward for the power elite — it has severed most of the remaining socio-economic contract they had with us by transferring a literally incomprehensible amount of wealth out of the hands of the American middle class and into the hands of the money masters.
There is no longer anything, really, stopping the power elite from seizing global domination. Global domination is always the goal of empire consciousness, but for the first time in history it appears to be logistically do-able through "free trade" zoning.
This global domination power grab is the summit of unsustainability. It is destined to fail, and when it does collapse it has the capacity to bring down civilization the world over along with it. This is the logical conclusion of the Fall, the inevitable outcome of separating ourselves from the natural world and adopting the unmitigated gall to think we are above nature, that is, supernatural.
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