Showing posts with label U.S. economics. Show all posts
Showing posts with label U.S. economics. Show all posts

Wednesday, January 18, 2012

Eating Soup with a Sieve

Robert Farley has a new article up at World Politics Review about his thoughts on the coming Department of Defense budget circus:
"Perhaps the most important takeaway from the white paper is the official recognition that the size of the defense budget itself represents a threat to U.S. national security."
says Farley,
"In theory, this should not be such a remarkable insight; one common narrative explaining the end of the Cold War is that the United States drove the Soviet Union to economic ruin by forcing it to maintain an unsustainable military budget. As Bernard Finel suggests, the United States has now committed itself to a degree of dominance over potential rivals that may be unsustainable in the long run, and that in and of itself poses risks."
Well enough. But I don't know if he has thought this through far enough.

Specifically:

First, I think he's giving the flacks too much credit - simply saying this will happen is far from a guarantee that it WILL happen. Military overstretch is nearly universal in the decline phase of imperia; almost the first symptom of post-vitality in a large or imperial polity is an excessive amount of revenue devoted into military forces and a decreasing return from that "investment".

That is; as empires first grow they often find that war "pays for itself". Imperial troops extend the borders, bringing home slaves and tribute, incorporating rich lands and peoples into the empire. This wealth then translates into more, better-equipped forces, which are more effective against the barbarians, bringing more people and more wealth into the empire. Wash, rinse, repeat.

But over time the combination of imperial social and political arteriosclerosis, bloated elites devoted to their own interests at the expense of the common good, and the vicious effects - on both imperials and colonials - of ruling the subject populations reduces the gains and expands the costs. Subsequent rulers desperately try and find ways to reduce these costs, only to find that in armies, in in every organization, what begins as a relatively lean, cost-effective organization over time becomes overstuffed with useless dunnage that contributes little, if anything, to the actual business of warfighting.

But, second, it is difficult or even impossible to reverse this without immense outlays of political prestige and will. I cannot think of a historical example of an empire that voluntarily restructured its armed forces, in a short time, as the result of a deliberate serious analysis of its geopolitical interests. The Marian Reforms? Except they were more-or-less purely organizational. The conversion of the U.S. to a global superpower in 1945? Helped that just at the moment we had the world's largest army, navy, air force, and a nuke or three lying around.

I'm not sating it can't be done - just that it's damn deadly difficult and the successful examples are so few I can't think of any, And throw in the toxic political environment of the 201s United States? It seems beyond unlikely; it is likely to be absolutely impossible.

Overall I tend to agree wholeheartedly with his conclusion:
"Defense budget politics has increasingly become a field of narrow contestation between experts, elites and interested actors, rather than a field in which different visions of the political good engage with one another. This has resulted in a prioritization of bureaucratic interest and parochial concern, both of which are enemies of real grand strategy."
...but tend to see this not as a bug but as a feature. In my opinion throughout MOST of U.S. history our military budgets have been decided this way.

For most of U.S. history that's been fine. We didn't need much in the way of geopolitical strategy to lick the natives of North America; some smallpox and a railroad or two would work just swell. Ad-hoc assemblies of forces would do to swat the Mexicans, Spanish, and Filipinos. You can sum up our geopolitical plans during the period 1918-1940 as "have a big Navy and don't fight anyone worth shit".

WW2? I'll give you that - well done, FDR, George Marshall. and Congresscritters all.

The Cold War was sort of a no-brainer, too. The Soviets were big so we had to be big, and we were already big. They had a blue-water navy and so did we. They had ICBMs and intercontinental bombers and so did we, or we developed them. It wasn't as big a no-brainer as giving smallpox-blankets to the Sioux, but, still...

So we're down to this particular time in history; post-Cold-War, 1991-2012.

And here's where our historical traditions; lack-of-planning, empire-in-a-fit-of-absence-of-mind, foreign-policy-as-an-outgrowth-of-domestic-policy are biting us on the ass. We are suddenly faced with a non-binary choice and an undefined future, a cloud of potential problems rather than a simple "threat". Teasing sense out of the chaotic multipolar world of the 21st Century and translating that sense into some sort of intelligent military policy is the sort of things that asks for a Talleyrand, or a George Marshall.

And instead we're awash with Rick Santorums.

So it occurs to me is that if reducing the U.S. defense budget growth in a sensible, strategically-planned, geopolitically coherent way relies on the sorts of gentlefolk of the sort much found in the U.S. Congress or in charge of the various executive agencies today making some sort of rational choices based on national interests and the cold calculation of economic and political realities we would be better off hoping for a pink magical pony to appear in a cloud of pixie dust, soar overhead and crap out lemon-verbena-scented golden nuggets of budgetary savings.

Sunday, November 13, 2011

Die erste achtundvierzig Stunden...

Occupy Portland is over.An ad-hoc force of police from several places including Portland Bureau today cleared the two downtown parks that Occupy had occupied. The protesters have regathered in several other downtown sites to "discuss" their next move, but in my opinion this is the end for Occupy.

For more than a week the local pols, newspapers, and television outlets have been voicing increasing impatience with Occupy and, truthfully, it seems hard to imagine how the "protests" would have done anything more than they have which beyond generating a sort of unfocused unease amongst the chattering classes has been no more than an irritant under the silken drawers of the rich and powerful.

It's been more than forty years since the mild insurrections of the U.S. Civil Rights era, half a century since the "nonviolent" protests of the Indian National Congress forced Britain's release of her Indian colony, a full century since the end of the violent strikes and near-rebellions that empowered the American labor unions.In the interim we have forgotten that "peaceful" protest is exactly as effective as "peacefully" resisting a savage beating unless you have your "peaceful" beating carefully planned to maximize your PR value - and it helps if your opponents are frigging morons, or politically and financially exhausted.

The civil rights marchers won because the Southern bigots were stupid enough to physically attack well-dressed men and women on national TV and newspapers. The Indian factions won partially because BG Dyer was a fucking bloodyminded idiot and partially because the Empire exhausted itself fighting two world wars. You could argue that the labor unions didn't actually win, but rather reached a sort of armed truce that lasted until the plutocrats shat the bed in 1929 and helped elect a labor-friendly administration.

Occupy had none of these to help it. Instead, it faced a massively corrupted and paid-for military-industrial-congressional-financial complex that is doing quite well under the present system. Any hopes of an FDR moment disappeared early in 2009 when it became obvious at least to me that the current Democratic administration had no interest in even trying cocking a snook at the banksters. The New New Deal this wasn't.

And the Occupiers forgot the other lesson of those earlier protest movements; that the public could give a shit about your politeness. The relative discipline of the Occupiers ended up looking like meekness, and regardless of what the Good Book says the meek won't inherit jack shit without a pair of brass balls, friendly press, and a sackful of bricks and cobblestones hidden away in case all the politeness doesn't work. And Occupy Portland had none of those things.

And ask the Paris Communards how even WITH those things, if the government is willing to ignore you when you're weak - and kill or arrest when you're strong - you you will lose.So the banksters have proved that a camel can leap laughingly through the eye of a needle. They have bought all the government they need, they or their lickspittle brownnosers own the media conglomerates, and the U.S. public is about evenly divided into thirds, and while one third is ignorant and indifferent one of the other two-thirds is actively hostile, either hoping to curry favor with the plutocracy or, tragically, mistaking the random helium in their guts for wings; by the time they fart away their good luck they will be plummeting too rapidly to have the time for regrets.

Occupy might have had more hope if the public was more intelligent and their enemies less powerful. In the first couple of days, or weeks...

But no matter. That hope is gone forever.

In March, 1935 the tiny German Army marched into the Rhineland, the first of Hitler's Thirties gambles. And it was more than a gamble; Hitler and his commanders knew how tiny their little force was. As hapless as the French Army of the Thirties was, and it was a fairly ginormous clusterfuck, a whiff of grapeshot in the old Napoleonic style would have seen the Heer packing across the Rhine and, probably, the end of the Hitler Era two years after it began.

But the French were too meek to make that move, and Hitler's success propelled him all the way to the wreck of the European world ten years later.

And here again, the first couple of days - "Die erste achtundvierzig Stunden" is how Hitler phrased it - were key.Once the larger public failed to rise in the first couple of days the Occupiers proved to have no strategy to force the issue or force their enemies to submit and their attempt to tame the bulls and bears is done.

Update 11/14: Upon further review, I had a couple of thoughts.

The antiwar protests of the Sixties have something a answer for in what they've done to the U.S. left. The protests were far less effective at "ending" the war than they seemed at the time (and have been mythologized since) - Nixon's concerns for the economy and the public's indifference to the Vietnamese were more crucial. But the result is that somehow the notion that merely marching around and sitting-in would be enough to effect political change and the record of those actions since then have proved this to be the nonsense it is.

The civil rights protestors, the INC activists, the labor movement radicals all had a collection of things that the post-'72 U.S. protests haven't:

1. An actual strategy that involved an entire range of acts, from pure theatre to violent protest, and some notion of how and where these would be applied. If OWS had anything other than "be there" I haven't seen it (mind you, the combination of vast public indifference and active media ignorance/hostility made it difficult to see how they could have done anything else effectively). And to orchestrate this these groups also had

2. An actual structured leadership - often fractious, even infighting, but the leaders were there actively planning the attacks on their opponents. The OWS seems to suffer from the goofy fuzzy-logic cloud-leadership that is to my mind the very WORST hangover of the Sixties protests. People like Lewis and Nehru and MLK were in many ways very unlikeable, manipulative, cunning sons-of-bitches. The OWS people seem to have absorbed the wrong lesson, which is that to get to a beneficent end you need to be a beneficent person. Couldn't be wronger. Many, perhaps most, of the people who have done "good" things for the mass of humanity have themselves been real bastards. You have to break a lot of eggs sometimes to make a good omlette...

Sorry that I'm such a little ray of sunshine today. But, as Matt Taibbi points out, the things that OWS is pointing fingers at aren't minor issues - they go to the very heart of the corruption of the crony-capitalist scam that has been driving the U.S. (and much of the Euro nations) back towards the Gilded Age. I'd have liked to see the U.S. and other western publics "get" that. But this doesn't seem to have happened, and at this point I have to conclude that it ISN'T going to happen. And for someone like me, who is and whose kids will be, part of the 99%, that looks like a bad thing for the future.

Saturday, October 22, 2011

GFT's Greatest Hits: Occupy Wall Street, 2008

The discussions we've been having over at MilPub about Occupy Wall Street got me thinking "Hmmm...didn't I write something about that..?" and eventually I went rummaging around in the back of the packrat portion of my mind and, sure enough, here it is from August, 2008.

"The Public Be Damned"

Every so often I run across something that reminds me so forcibly, so violently, of the present desuetude of our republic that I lose my wind just for a moment.

Here's Glenn Greenwald describing the scene at the current Democratic National Convention, where the telecom giant AT&T throws an intimate little shindig for the very people - imagine that - who helped them evade lawsuits for their lickspittle subservience to the criminals in the Bush White House and the NSA who believe that the laws of the land are, in the immortal words of Leona Helmsley, "for the little people".

I challenge you to read it and not throw up a little in the back of your mouth. It's sickening. It's the real face of "American politics".

It's not like this is something new in American politics. The rich are always with us, and the only difference between the New Gilded Age and the Old was that back then, a man like Mark Hanna could openly say; "Come on, you've been in politics long enough to know that no man in public life owes the public anything."

Today we have to pretend to "care" about the Great Unwashed, but the reality of America is that unless we're in the top 1% of all American incomes many of us have much of the freedom of a polled Hereford being prodded up the chute towards that dark building where we await our political and economic fate. Are we better off than some Ukrainian peasant or Zimbabwean prole? Sure. Will that mean much when our job is offshored, or we get sick and run through our insurance, or the highway to our parents' falls apart and we have to drive a 40-mile detour to visit?

No.

Here's Andrew Bacevich talking some hard, cold sense that most of us will close our ears to:
"The military-industrial complex will inhibit efforts to curb the Pentagon's penchant for waste. Detroit and Big Oil will conspire to prolong the age of gas guzzling. And the Israel lobby will oppose attempts to chart a new course in the Middle East. The next commander in chief will inherit an intractable troop shortage. The United States today finds itself with too much war and too few warriors. That alone will constrain a president conducting two ongoing conflicts. A looming crisis of debt and dependency will similarly tie the president's hands. Bluntly, the United States has for too long lived beyond its means. With Americans importing more than 60% of the oil they consume, the negative trade balance now about $800 billion annually, the federal deficit at record levels and the national debt approaching $10 trillion, the United States faces an urgent requirement to curb its profligate tendencies. Spending less (and saving more) implies settling for less. Yet among the campaign themes promoted by McCain and Obama alike, calls for national belt-tightening are muted.

Will we listen? Will we act? No.

Because, in the end, short of violent revolution, with the monetary grip on the levers of power, what CAN we do?

And because, in the end, we'd rather pretend that the future holds "freedom" and green pastures and sunny skies and try not to hear the cries of the other steers and the whisper of the killing knife.

And here's the interesting thing; we had a lively little exchange in the comments section, where, among other things, I wrote this: "...our economy is deeply unsound and shortsighted, our public uninformed, venal and stupid and our "leaders" corrupted and dysfunctional and then somehow insists that our nation will slip under this scylla of disaster.

I have no doubt that there will be a thing called the "United States". I'm not so sure we will like it, or possibly even recognize it. More and more I am convinced that the grand bargain forced on the Wealthy by FDR - that they would restrain their rapaciousness in return for labor peace and domestic tranquility- has broken. The rich will soon force the middle class into genteel poverty or economic servitude. The poor (flayed by immigration, crushed by hopelessness) will become little but serfs, in fact if not in name.

In short, we are returning to the U.S. in the 1880s and 1890s.

Fabius denies this, but his arguments boil down to, in essence, "America is stronger than that."

Bullshit.

We've been there before and there's no reason we won't return."


Now...not to toot my own horn - though this blog IS my little horn and I'm gonna toot it - but with the U.S. of 2011 looking ever more like the U.S. of 1929...and the GOP bound and determined to return it to the U.S. of 1899...should the New York Times not be hammering on my door asking me to write for them, or what?

Fuck, but sometimes I'm just that GOOD.

And ask me what that's worth and I'll cadge a buck off you for a cup of coffee. I'm just as much part of the 99% as the rest of y'all.

Update 10/23: I was listening to the kiddos play LEGOS and eat seaweed for breakfast (the Little Girl, anyway - anyone else have a child that likes dried nori for breakfast?) and blogreading when I came across this, from David Atkins at Hullabaloo, which is so good that I have to quote it at length. To wit:
Simply put, in the 1970s America was hit with an inflation crisis that quickly became a stagflation crisis. There were also oil shocks involved. Simulataneously, the world was becoming increasingly globalized, which made it more difficult for American corporations to compete using American labor. Finally, as Hacker and Pierson have persuasively argued, big business banded together to begin more aggressive and cohesive lobbying efforts. These four trends were devastating politically for the middle class.

American public policy on both sides of the aisle reoriented itself away from a focus on wages and toward a focus on assets. Specifically, the idea was that wage growth was dangerous because it led to core inflation in a way that asset growth did not. American foreign policy became obsessed even more than it had been with maintaining access to oil, both to prevent future oil shocks and to prevent inflationary oil spirals. Wage growth was also dangerous because it would drive increasing numbers of American corporations to employ cheaper overseas labor.

But that left the question of how to sustain a middle class and functional economy while slashing wages. The answer was to make more Americans "true Capitalists" in Reagan's terms. Pensions were converted to 401K plans, thus investing about half of Americans into the stock market and creating a national obsession with the health of market indices. Regular Americans were given credit cards, allowing them to take on the sorts of debt that had previously only been available to businesses. Most crucially, American policymakers did everything possible to incentivize homeownership, from programs designed to help people afford homes to major tax breaks for homeownership and much besides.

Low prices on foreign-made goods were also a policy priority. This had a dual benefit for policymakers: lower prices offset stagnant wages, while keeping core inflation low. Free trade deals were also a major centerpiece of public policy in this context. Few politicians actually believed that these deals would help increase wages and jobs in America. But what they were designed to do is keep low-cost goods coming into America, while increasing the stock value of American companies exporting goods overseas, thus raising asset values.

Low interest rates were also important. Renters and savers suffer in a low-interest rate environment, but borrowers and asset owners do very well. Tax cuts, of course, are also helpful in offsetting the impact of wage stagnation.

Houses and stocks, then, are assets that rise independently of wages. Low-cost overseas goods and the easy availability of loans and credit provide offsets to low wages. Low interest rates and tax cuts help as well keep assets afloat as well. The bipartisan idea from a public policy standpoint was not simply to enrich the wealthy at the expense of the middle class. The idea was to make the American middle class dependent on assets rather than wages. I was at a conference many years back, the purpose of which was to bring corporate bigwigs together in defense of free trade against what they feared might be a protectionist backlash. One executive told me point blank that if only enough Americans were invested in the stock market, they wouldn't gripe about Halliburton and other similar companies because they would say, "Hey, I own part of that company!" When I objected that that only half of Americans were invested in the market at all, and of that figure far fewer had significant assets invested, he retorted that more Americans were invested in the market than I thought, and that policy needed to be designed to push more Americans to invest.
I've often looked at our public policy and tried to figure out "What sane polity would enact policies seemingly designed to return itself to what may have been the least-stable political conditions (the openly-oligarchic period between about 1870-1930) since before the Civil War?" And here's the answer. And Atkins has a simple and exceptionally sane solution:
"The recklessness and stupidity of this sort of approach to public policy should have been proven by the 2008 financial crisis that saw the rapid destruction of asset values in stocks, bonds, and housing. Predicating economic health on asset growth is a pipe dream: most people will never have enough assets to make it work, and asset growth is far too unstable to serve as the basis for a functional economy.

Whether they can articulate it or not, what has most progressives most incensed about the Obama Administration's domestic policy is that it has ultimately hewed to the same asset-based economic model. When the Administration could be progressive on cutting costs or ensuring equality without negatively impacting assets, it did so. That's what the ACA, the Ledbetter Act, the repeal of Don't Ask Don't Tell and numerous other left-leaning Administration moves were designed to do. But the Administration has been very reticent to take any actions that would negatively impact the value of assets.

America will only return to real economic health when the asset-crazed insanity of the last 30 years is brought to heel, and America returns to a public policy that is far more interested in wage growth and economic stability than it is in asset inflation. Until then, we can expect continued political and economic shocks from an angry electorate and an economy that has run off the rails due to 30 years of deeply misguided anti-inflation, pro-asset-growth ideology."
But sane or not, my skepticism remains. The wealthy have their hands around the neck of the government; they will not be pried loose. And they are no more prescient that their counterparts were in St. Petersburg in 1917 or Paris in 1789. They will destroy the village in order to save their privileges. And the extraordinary coalition that pulled our nation away from the totalitarian abyss that awaited it in 1932 - Soviet communism on the one hand, Italian (and, later, German) fascism on the other - shows no signs of being there to ride to the rescue.

In other words?

WASF.

Tuesday, August 16, 2011

Backside to the Future

With the ludicrous Ames Iowa "straw poll" it appears that the 2012 campaign season has officially begin...15 months before the actual election.I can't begin to express how this irritates me.



Glenn Greenwald explains better than I can how the combination of endless "election" coverage combined with the rapacious cable news 24/7/365 cycle hammered down into the simpleminded "tell the masses what they want not what they need" paradigm of the corporate news (and, of course, sprinkled with some commercial gottasellsomeads! pixie dust) goes into the television cameras and emerges in your living room a Möbius band of idiocy that ties misinformation into disinformation with plain, good old fatuousness for a sort of fractal stupidity; refracted infinitely to where any hope of extracting simple, sane understanding of the people and their ideas has vanished.



But at least on one hand the tale told by one of the idiots - while set about with sound and fury signifying nothing (that is, the usual folderol involving gays, guns, and God - fodder for the gossip columns and the prayer breakfasts but nothing more than a magnetic sticker on the bumper of the People Who Matter in our electoral "process") - is simple enough.



No new taxes. In fact, no taxes at all, or as close as possible.



Small government. Teeny, tiny, eensy-weensy leetle government (except the part that blows up Scary Brown People, but that's the cool part, anyway).



Freedom for the Job Creators! Deregulate everything regulatable!



Free Markets! (meaning; deregulate even MORE stuff!)



Plus some other truly crazy shit; abolishing the Fed, returning to the gold standard, protection for precious rapist-babies...but you know the drill - that's just to give the loonies a shiny pretty to play with.



Here's the thing; this is nothing new. Nothing. We've already been there, done that, and got the crinoline and the Arrow t-shirt.



Low taxes? Freedom for the magnates? Utter deregulation and a complete lack of federal anything?The Gilded Age.



Seriously.



And, if I have to be scrupulously honest, if I was in Forbes 400, if I was one of the rich and the powerful...why not?Hell, the pre-Depression United States was a paradise for a rich man (woman? enh...not quite so much). Mansions? Servants? Senators appointed at your whim? Entire federal administrations in your pocket? Ask the Doles how that Hawaii thing worked out for them, the Rockefellers how the Standard Oil gig payed off before those meddlesome Progressive trustbusters elbowed in.



And let me be honest about this, too; the United States works perfectly well as an open oligarchy. It did from about 1870 to 1930, and don't kid yourself; some pigs are still more equal than others and always have been. Tell me that you get the same meal ticket emerging from the Oregon Episcopal School versus Jefferson High School here in Portland.



Henh. Right.



But I'm not here to argue equality of outcomes.



I'm here to talk about next year.



It's becoming painfully clear that the GOP is going to nominate someone whose positions on things like federal regulations and spending are closer to those of John D. Rockefeller than his grandson. And if they win - and the continuing Great Recession makes such a win highly plausible - they will do their very best to return this country to the Gilded Age they by their words and deeds so seem to yearn for.



I consider this a very Bad Thing, largely because me and mine are unlikely to be among those included in the Four Hundred. We will not be robber barons; more likely we will be among the robbed. Mojo and I had a lovely saunter about our graceful Pittock Mansion this sunny Sunday, and I observed that had we been alive then our only glimpse of the beautiful appointments and spectacular vistas would have been as we carried the dirty linen down the stairs or brought master his cigars.But I have to accept that it would not necessarily be a Bad Thing for the nation. More nations have thrived and grown in wealth and power as oligarchies than as democracies, simply because of the late arrival of popular democracy on the historical scene. The nation as a nation might do quite well.



And it is unlikely that even the most teabaggiest Republican government would be able to go full public-be-damned on us. The welfare state is deeply ingrained in U.S. society, and there would come a point where even the most Galtian overlord would draw back from reintroducing a world of match girls and breaker boys even if it helped bring back the Gibson Girl and the Arrow Shirt guy.Make no mistake; "reforming" the entitlement systems now in place mean simply throwing people out of them. Some of those people will find ways to live without their dole money; the American people had all sorts of ways of coping with poor, sick, old parents and injured relatives before 1933 and they can reinvent those ways again. Families will return to the multigenerational homes of the past, where retired grandma cares for the grandkids while mom and dad work, in return for food and a bed. There are ways, there are ways.But.



And this is a big "but"...



Two things have changed enormously since the last time we tried to live this way, assuming that the GOP experiment goes forward. And I'm not sure whether they've really thought this out.



First, in 1911 the U.S. was a burgeoning industrial power; work was there - not always good work, often dirty, hard, low-paying, dangerous work - but it was there. And it was work that needed people; vastly manual, even when skilled. The factories of the Gilded Age needed lots of poor people to work them.Second, there was still a hell of a lot of "open" land, and "open" places, for people to go to try and start again. The frontier only officially closed in 1890, and even in the Fifties there were lots of places that were still booming and enjoyed a boomtown's need for people.And both of of those "safety valves" are gone.



If the Great Recession and the thirty years of deregulation, outsourcing, offshoring, downsizing, and deunionization have proved anything to the people Who Matter in business and politics, it's that Henry Ford's old paradigm - pay the workers better so they will buy more stuff - has been broken. The "old economy" here in the U.S. - the economy that depended on American working people working to make stuff that other American working people bought - is tanking, HAS tanked, and I don't think anyone knows how to put all those people back to work in any sort of work that pays a living wage.And there's nowhere to "go". The frontier really IS closed, and there's no hope for people to take up forty acres and try and make a go of it. Oh, sure, you can try an start-up a little company, make cute glass cups or design webpages or invent a new application for a cell phone...but working for yourself is a backbreaking task, and especially in the corporatist U.S. of 2011 there are so many ways that a bigger, more powerful competitor can dry-gulch you. My wife is a "contractor" and I've seen the sausage-making up close. They're right - it's not pretty. And it's not going to get you into the parlor at Pittock Mansion, either.



So assuming that the Gilded Age Project largely succeeds, we can assume that it will result in a fairly large group - larger than we have dealt with in living history - of relatively permanently unemployed or under-employed people, people who not only don't have work but for whom the IS no work, no work that can't and won't be done by someone in Bangladesh or Uruguay for a fraction of what that American would need to make to live even at poverty levels in this country. That among this group will be many old, sick, and old sick people. And that if there IS a way out of that throwback to the future it is something that not only is unapparent to us now, but even potential precursors are not apparent.



The old economy is failing. The new economy - whatever that may be - has not yet emerged, if it ever will emerge in any form that will help those knocked down by the fall of the old economy to their feet again.



And one major political group in U.S. politics believes that the best response to this is to return as closely to the conditions of 1889 as possible.



So.



I'm not sure what is in store for me, for my family, for you and yours. But I suspect that even if we don't end up turning back down the road towards the past we're in for some hard years ahead.



And if we do...well...



If the U.S. Army taught me one thing, I learned how to mop a fucking floor.Hopefully when I end up getting downsized I won't be too old to land a job cleaning up at the Big House.

Monday, August 8, 2011

The Red Flag

The recent failure of the U.S. governing class to understand that the immediate (i.e. next decade's) problems are not those of debts and deficits but of jobs and joblessness make the recent news from London something of a nasty reminder of what happens when a substantial portion of your working-age population ends up jobless for long periods of time.I think we need to remember that we are not Japan. Young American men (and women) without a job are not going to behave well for long. Why bother? What is there to lose? In the U.S. you ARE your job. And if you have no job, how much do you have? Freedom? You have the freedom to lay about, eat junk food, and do squat. As much as that might have appealed to me at age 14 for about three weeks, spending the bulk of my twenties or thirties...or fifties...doing that?



I'd probably go out and loot a 7-11, too.No question that we will have to grapple with the question of how much the U.S. governments need to take in and how much they need to spend. But before we do that we need to get through the next stage of the Great Recession (can we start calling it a Depression yet?) without finding a sizeable chunk of our population out of work and on the dole. Because that's not a good thing for them, it's not a good thing for us, and it's not a good thing for the country.There's a reason that that crafty old patrician FDR and his New Deal pals didn't just push through stuff like Social Security and unemployment insurance but created a bunch of make-work agencies; things like the CCC and WPA and the big government construction projects were a smart reaction from people who were watching what the Soviets and Italian Fascists were doing with their young people - stuffing them into armies and "labor corps" and other make-work jobs. Things like the Bonneville Dam and the CCC kept idle hands from becoming devils' playgrounds...and idle brains from getting stuffed with fascist or communist ideas. Those New Deal guys knew that having a bunch of working - i.e. military - age guys just hanging around with nothing to do was a hell of a good way to start trouble.



I'm not sure if we need a new CCC. But I'm hella sure that we don't need a bunch of stuffed hairbags in DC gassing on about the Terror of Deficits when 10% and probably more of the U.S. public is out of work and stands to be for a long, long time, at this rate.



Because despite what they tell you on TV; were not that much smarter, or better behaved, than we were in 1932. And now, as then, as the London Council is finding out...if we don't figure out how to get those guys back to work or find something for them to do, they'll find it themselves, and the rest of us might not like it."I'm out of work and on the dole,

You can stuff the red flag up your hole."

Thursday, March 24, 2011

Bread and Roses

One hundred years ago today something approaching 500 people were coming to the end of a long workday Saturday in the Triangle Waist Company building down in lower Manhattan near Washington Square.March had been a busy month that year. The first U.S. federal cemetery with both Union and Rebel graves had opened in Missouri. Victor Berger had taken his seat in the U.S. Congress as the first socialist, while back on the 7th of the month 20,000 troops had been sent south to the Mexican border to keep an eye on those pesky revolutionaries. Willis Farnsworth patented the coin-operated locker in Petaluma, California, while on Broadway Ivan Caryll's musical "Pink Lady," had opened the previous week and a splendid new theatre, the Winter Garden, had opened just last Monday. So the people hard at work in the upper floors of the Triangle Company must have had a lot to talk about.

Most of them were girls and young women, as was customary in the "garment trade". They were employed sewing "shirtwaists", women's shirts or blouses. It was repetitive, niggling work, and the seamstresses were paid by the piece, meaning that they had to work as fast as possible, but would not be payed for flawed garments, meaning that they had to be exact and avoid mistakes.Like most factory workers at the time - like most factory workers from the time there HAD been factories - the gals at the Triangle shop made what they could, and that was damn little. There were lots of young women ready to take any job for any wage; the immigrant boats were full of them, coming from Russia, Italy, Germany, and much of Eastern Europe. The owners had a business to run, not a charity. Their business was business, and any worker who made trouble - or didn't make enough shirtwaists, was out on their ass.

So it was just another Saturday on the ninth floor of the Triangle Building, the Singer sewing machines clattering, the working girls probably exchanging a word or two, looking forward to quitting time and the next day off.And then the first young woman breathed in a faint scent of smoke.

The Sunday New York Times said later; "The building was fireproof and the owners had put their trust in that. In fact, after the flames had done their worst last night, the building hardly showed a sign. Only the stock within it and the girl employees were burned."And they burned.

Like candles. One hundred and forty-six of them.

Some preferred to break themselves on the street ninety feet below rather than die in flames. The single staircase was quickly blocked by fire, the wretched "fire escape" broke in a cascade of twisted metal and twisted bodies. When New York's Bravest arrived they found that their ladders, crafted for a smaller, lower New York City, could only reach the sixth floor. Dust, rags, cloth scraps, all took fire like kindling. The firebuckets were quickly emptied, the exits blocked by debris, or, after a while, by bodies.So the women burned, or jumped. And died, their skin blackened like burst sausages, their guts looped ropy and blue on the pavement, spilling from ripped skirts, brains seeping from shattered skulls. The dead carts hauled them off to the morgue, to be identified, or not, by bits of cloth, or broken jewelry, or shards of teeth.The city was shocked by the carnage. Hundreds of funerals, a day of mourning, reminded even the least involved what had happened. For those who continued to work in the business, Triangle reminded them like a punch in the face how close they skirted to disaster every day they punched on the clock.

The fire that consumed the working girls of the Triangle company set alight the garment workers unions that had been trying to organize the workers in New York for years. Rose Schneiderman of the ILGWU said later that;
"We have tried you citizens; we are trying you now, and you have a couple of dollars for the sorrowing mothers, brothers and sisters by way of a charity gift. But every time the workers come out in the only way they know to protest against conditions which are unbearable, the strong hand of the law is allowed to press down heavily upon us....I know from my experience it is up to the working people to save themselves. The only way they can save themselves is by a strong working-class movement."
The State of New York tightened their fire safety inspections, and moved to change some of the rules that allowed the conditions of the Triangle fire. But not by much.

Even more insulting was the "trial" of the owners of the company for negligence and for locking all but a single exit door (to prevent pilferage, they said). They were acquitted within a month. Three years later the owners settled civil lawsuits for 75 bucks a corpse.Meanwhile they had gotten back in the shirtwaist business before April 1911 was out; their new factory was inspected later and found to be a wooden firetrap without fire escapes and a single exterior door. One of the Triangle owners, a character by the name of Max Blanck, was found guilty of again locking one of the doors of this factory during working hours and was fined twenty dollars.

Twenty.

Fucking.

Dollars.


The judge apologized to him for the hardship of the fine.

That same year an inspection of this workshop found it was "littered with rubbish piled six feet high, with scraps kept in non-regulation, flammable wicker baskets."

Max got a stern warning from Justice that time, you bet.

So.

Why remember this hundred-year-old fire today?

Because we Americans have had it pretty soft for a long time.

Because we take a lot of things for granted; things like safe workplaces. Things like weekends, and free time. Things like clean air and water. Things like a living wage, and vacations, and retirement, and professional courtesy and honest dealings from employers and civil servants.

Because we forget that we didn't "get" these things. They weren't "given" to us. We didn't "earn" them.

They were taken from people like Max Blanck, who fought and squealed, who called in cops and soldiers and scabs and strikebreakers, who locked out and beat up and laid off, the people who fought them to get these things.Because we have forgotten that the Max Blancks don't forget; that they'd take all those things back, if they could, and that they will if they can.

Because we seem to think that unions are bad, that workers are bad, that protests are bad, that government is bad.

Because the unions themselves have forgotten that they aren't in this just for a fat paycheck and a featherbedding job. Because the unions once helped make the United States a land where a man could live a middle class life through the work of his hands, and that that was something WORTH fighting for. That jobs weren't just "given" from the wealthy factory owners, they were made by the men and women who worked at them.

Because we've forgotten that, while capital and industry have brought us goods and services, comfort, ease, and entertainment, it has also brought us Love Canal and thalidomide, the Dalkon Shield and Deepwater Horizon. Because we've forgotten that if corporations are people as people they are often psychopaths; unconcerned with human lives, divorced from any responsibility other than Making a Goddamn Buck.Because we had forgotten that America has become as strong as she has because her people were strong, her people have risen together more closely than the deep divide that separates the rulers and the ruled in many nations. And that this has not been because of the grace of the American ruling classes but largely because of a ruthless coalition of liberal aristocrats like the Roosevelts, muckraking journalists, socialists and even communists but most of all because of American workingmen and women who fought for roses along with their bread, for days of rest as well as workdays, for relief in sickness and age as well as wages for labor.

It is fashionable today to flip a hand at the notion of "organization", at the idea that Americans who are not in the two-yacht families, who cannot aspire to wealth or society, should stand together against those who are. "Class-warfare" is the sneer, from the very class that is winning that war. It is popular today to dismiss the sort of people who died on the streets of New York as the losers of this war; the casualties of the New Economy.But we have not been beaten. We have surrendered; we have chosen to give up rather than try to fight the standards of the developing countries, with their starvation wages and festering sewers of rivers and trashpiles in ravines, driving us into a race back down to the bottom.

And it may well be that the combination of foreign competition and domestic mediocrity are indeed spelling the end of the Era of American Industrialism. That we are fated to become two nations; a wealthy elite and a mass of beaten wage-slaves, clinging to an every-tightening gyre of falling pay and rising debts, shrinking services and growing costs, as the vulture of greed tears as our liver.But the real shame of it is that we have gone down without a fight. In our fever to "lower our taxes" and save pennies we have handed our masters billions. In our haste to "shrink government" we have gutted the agencies that inspect our food and secure our workplaces. In our frenzy to "grow the wealth" so it will "trickle down" we have made little tin gods of the Trumps and the Kochs,and the Max Blancks.

Perhaps this is all inevitable. Perhaps the living-wage factory job really is as dead as the dodo; killed off by low tariffs, low-wage competition, automation, greedy unions, greedy stockholders, high costs and deregulation.

If automation, layoffs and offshoring, corporate profits and our desperate need to fill the stores with disposable plastic crap continues to destroy living-wage work, yes, it WILL be inevitable. But even if it is...we have chosen to surrender without a real fight. And that is not just defeat. That is dishonor.

If we are headed towards a nation that consists of the rich and the unemployed, if in our greed and fecklessness we allow the oligarchy - that has always been a part of the makeup of the United States since its founding - grow great and become our future...on the way to that nation we will have to pass under the stony eyes of the dead women of 1911, in whose pitiless gaze we will see reflected the exact dimensions of our dishonor, the final diminution of our nation, and the precise misery of our fate.

Tuesday, October 12, 2010

Three-house Monte

Here I was thinking about the latest in the "housing bubble" news - the recent spate of articles about some sort of large-scale, long-running scam in foreclosures - when I came across this; an explanation of how all these people got into the position of having their homes jerked out from under them.

Even rhe logic tree is fairly tortuous;And here's the thing; I cannot for the life of me discern how any of this frenetic financialization and securitization and banksterization of something as simple as a home loan benefits anyone other than the street hustlers in the nice suits at the places like Bear Stearns and Goldman Sachs that crafted all this cleverness.

Someone - Bob Reich, maybe? - said once that the financiers hadn't "invented" anything of genuine benefit to the average citizen since the ATM machine, and this sort of big-money street hustle makes me suspect that he was on to something.

Essentially a home loan should be just that, a single, simple transaction between lenders, who get interest on the money they lend, and borrowers, who get the capital they need to own the place they live. I cannot see how any further fiddling with the arrangement benefits anyone other than the three-card monte hustlers in the financial "business".

If they did this on a street corner you'd expect the beat copper (are there beat coppers anywhere anymore?) to chase them down the block with cards and quarters going every which way, the sort of minor comic scene you'd expect in a Thirties movie.Except at the moment it isn't a movie - it's our lives.

Can anyone explain to me why we seem to be more upset about things like public arguments over religion and television programs that this? Are we that stupid, or just that easily distracted by the shiny pretty?