September 3rd,2010

Socialist!

Joseph Marohl

I suppose we have Lenin and Stalin to blame for making “socialism” a bad word, and the cold war for making socialism sound antithetical to democracy and the American dream.

Still, it’s lazy usage of the word to accuse President Obama of being a “socialist,” as conservatives have been doing since last fall, under the spell of Joe the Plumber, just as calling George W. Bush a “capitalist” in the usual sense of the word misses the word’s defining points.

By all accounts Bush was a piss-poor investor and entrepreneur (still, to his credit, according to Snopes.com, he never actually said the French had no word for entrepreneur), having survived in all his pre-political business dealings on the coattails of his father and family connections, and, as U.S. President, turning a $200-billion surplus into $400-billion deficit, hardly a high watermark for ideological capitalism.

Likewise, Obama’s “socialism” benefits the Haves somewhat more directly than the Have-nots. Republicans call it “socialism” perhaps because it does not exclude the Have-nots entirely. More than Bush, Obama at least has experience in pulling himself up by his bootstraps.

It’s also a mistake to call the present collapse of capitalism as consequently and effectively socialism. “Capitalism” and “socialism” are indeed opposite terms, but it makes no sense to assume that the collapse of one is necessarily a triumph of the other. Lurking variables do appear to exist.

Arguably, the collapse of the Soviet Union precipitated a good bit of the mess Wall Street finds itself in now, so much depended on the cold war to prop up both sides of the “conflict,” just the opposite of what the long-held false dichotomy would suggest.

Since the Great Depression of the 1930s, the frisson produced by tension between workers’ interests and investors’ interests has been the (tenuous, at best) basis of global economic strategizing. And the current economic collapse could just as easily swerve America to fascism or feudalism as to socialism or communism.

The stimulus packages, all varieties of them, are designed to keep gigantic financial institutions and multi-national corporations afloat. The collapse of these entities will cost jobs for ordinary working people, but probably no more so than the collapse of the European aristocracy did in the 17th and 18th centuries.

Yesterday, I watched Roberto Rossellini’s television film The Taking of Power by Louis XIV, recently available on DVD. It shows the French monarch’s building of Versailles and adoption of sumptuous finery in dress as deliberate ploys to stave off the inevitable forces of the bourgeoisie and democratic ideals, much as the Reagan-Thatcher high style in the 1980s, combined with sugary doses of nostalgia, were deliberate diversions from the faltering economy, which most people felt comfortable blaming Jimmy Carter for, mainly because he had dared to suggest wearing sweaters and turning down thermostats.

A culture built on superficial luxury and debt is a monarch’s and a dictator’s and a CEO’s bastion against forces of history, change, and equality.

Rossellini’s film begins showing ordinary workers commenting on how a good position with the king is affecting the amount of time husband can spend with wife, since work in the palace, though well compensated and prestigious, requires slavish devotion and little time for leisure … or a personal life.

When one loudmouth mentions that England had just successfully beheaded its king and seemed none the worse for wear, he is hushed up since all their income, including the loudmouth’s, is tied to the interests of the French aristocracy.

Such is the defense of the various stimulus packages, too—critics should shut up since “everybody has a stake in the fate of AIG.”

Calling the President a socialist seems a bit arch to me, since from FDR to Reagan to Clinton, Presidents of both parties have been propping up an untenable free market, seen as such by even leading capitalists like J.P. Morgan and Andrew Carnegie in the late nineteenth century, with a variety of tricks co-opted from the old aristocracy.

FDR’s welfare programs are largely credited with saving the U.S. from Soviet-style communism on one hand and German- and Italian-style fascism on the other. Similarly, building Versailles kept the aristocracy in debt to the king (thus stifling political intrigues) and French workers too exhausted to analyze what exactly their own interests and rights were, much less rise up in protest against their oppressors.

In Western democracies, civil rights have been recognized when (and only when) civil disobedience and unrest have threatened profits or, worse, threatened to pull open the curtain and reveal the flimsy mechanisms that keep the “economy” blinking and buzzing.

The West has tended to stand up for human rights elsewhere in the world when its own economic interests have been threatened, though inevitably human rights and safety are invoked as the main rationales for war.

The stock market has been shaky for some time now, and though it has been the practice of the American right wing to blame this propensity for decline on insipient socialism and “big government,” it seems to me that big government, in the form of laissez-faire liberalism, has always worked more in the interest of preserving the viability and stability (or the illusion of these) of self-consuming industrial and capitalistic forces than in the interest of the American people in general.

Peter Schiff Talks About the Stock Market and the Economy

Kelly

The following videos are from an interview of Peter Schiff, financial expert and President of Euro-Pacific Capital, from 2002. His analysis of our nation’s economic future is quite alarming. Given the current circumstances, one might say that Peter Schiff was ahead of his time; perhaps the Paul Revere of today, warning us of our collapsing economy.

Part 1

 

Part 2

 

 

Presidents Hoover and Bush, Economic Similarities

Joseph Marohl

Seventy-nine years ago this month the stock market crashed big, just a year after the election that won Herbert Hoover the Presidential election. The US economy seized up, and the Roaring Twenties died down to an asthmatic wheeze. Black Tuesday, October 29, 1929.

As Commerce Secretary in Calvin Coolidge’s Presidency, Hoover had gained visibility in ’27, through his quick, effective, and humane response to the Great Mississippi River Flood, which breached levees, swamped millions of acres, and made thousands of people homeless.

A pro-regulation, anti-laissez faire Republican, President Hoover revoked private oil leases on government-owned land, closed tax loopholes for the wealthy, and unsuccessfully pushed for lower taxes for low-income Americans. He worked hard for Native American rights, reversing a long history of abuses—not least of all, he chose Charles Curtis, a descendant of Native people, raised on the Kaw reservation, as his Vice President.

By today’s standards he would probably be called a liberal—or, at the very least, a compassionate conservative.

Still, he supported volunteerism over government intervention to address the nation’s vexing social problems—as wealth accumulated into the hands of fewer and fewer of the privileged. To assuage Americans’ fears of losing jobs to immigrants, he forced half a million Mexicans to return to Mexico—accomplishing on a smaller scale (roughly one-fortieth) what right-wingers today dream of. Under his watch, the crash of the stock market became the single worst financial disaster in US history.

Strange and somehow funny, isn’t it, how, despite 80 years in between, the issues that have dominated the George W. Bush Presidency mirror—in distorted funhouse fashion—those that occupied the Hoover White House?

Bush, of course, is famously anti-regulation, pro-oil, and slow to respond to natural disasters. But it’s interesting how the issues facing these two Presidents cut across each other.

When the Great Depression struck, people who lost their homes built ramshackle shacks and erected tents, building neighborhoods of impoverished men, women, and children in public areas of the major US cities, from the Port of Seattle to Central Park in New York.

Charles Michelson, chief of publicity for the Democratic National Convention back then, dubbed the impromptu housing projects “Hoovervilles.”

Howard Zinn wrote of this period,

“A socialist critic would … say that the capitalist system was by its nature unsound: a system driven by the one overriding motive of corporate profit and therefore unstable, unpredictable, and blind to human needs. The result of all that: depression for many of its people, and periodic crises for almost everybody. Capitalism, despite its attempts at self-reform, its organization for better control, was still in 1929 a sick and undependable system.”


This past spring, BBC News covered new tent camps—dubbed “Bushvilles”—popping up across the nation as a result of the rash of mortgage foreclosures. The parallels are, of course, startling.

Nobody wants a replay of the Great D, and it’s unfair to single out the Bush Administration for blame on problems that have been in the making bipartisanly for decades—though arguably Bush et al. have blithely pushed matters over the edge.

Bush’s “ownership society” seems to be crashing on our never-too-terrorized-to-go-shopping heads.

 

Source(s): 1Zinn, Howard. A People’s History of the United States: 1492-Present. New York: Harper, 2003.

Massive Protests Against Bailout Go Unreported

Allison Bricker

Protesters continue to gather en mass to rail against the proposed $700 billion dollar taxpayer funded bailout expected to come up for a vote again on Thursday.  Yet a quick check of main stream media news websites, Fox News, CNN, MSNBC, CBS, ABC, New York Times, Washington Post, nor even the Drudge Report are reporting on the massive amounts of people overflowing up and down Wall and Broad Streets in New York’s famed (or infamous depending on your personal view) Financial District. The only prominent outlet reporting on the protests came from the wholly independent “Democracy Now” which receives no government, corporate, or Corporation for Public Broadcasting grants or funding.

On Tuesday, stocks rebounded 485.21 points after a panic ensued on Monday which saw markets plunge 777.68 points after H.R. 3997, the Emergency Economic Stabilization Act of 2008 failed to pass the United States House of Representatives.  Additionally, Wednesday saw the Dollar’s highest jump against the Euro since its inception.

Also on Wednesday, many “financial talking heads” continued their condescending attempt to convince Americans that the reason the bailout failed was simply due to it being far too complicated for “regular people” to understand.  Politicians also made the rounds on the cable news shows, stepping up their attempts to recast the bailout and redefine it as a “financial rescue plan”.  Nevertheless emails and phone calls continued to inundate Congressional Representative’s offices at a rate of 100 to 1 against the bailout.

Source(s): Democracy Now©, Time©, Bloomberg.com.  Video supplied from user content uploaded to YouTube©

Current Economic Collapse Warned About in 2006

Kelly

Though, many of our so-called leaders on Capitol Hill would love to insist that they never saw the current economic crisis coming, former Ron Paul economic adviser, Peter Schiff is not surprised one bit.

The following video is a debate segment on “Kudlow & Company” from August 28th, 2006 featuring Peter Schiff and Art Laffer.  Mr. Schiff warns of the coming crash due to a lack of personal savings and immaterial paper wealth from sub-prime Adjustable Rate Mortgages Backed Securities while Mr. Laffer pompously postulates how we have nothing to fear beacause of “excellent monetary policy by Greenspan and Bernake”.

Peter Schiff Debating Art Laffer in 2006

The second video is an appearance by Mr. Schiff on Glenn Beck’s television program on CNN Headline news.

Peter Schiff on Glenn Beck – September 30th, 2008


Source(s): CNBC’s “Kudlow & Company”© and CNN Headline News’ “Glenn Beck”©