Showing posts with label middle class. Show all posts
Showing posts with label middle class. Show all posts

Wednesday, February 13, 2013

The State of Barack Obama

An interesting way to teach American History would be to have the students read each of the State of the Union addresses, starting with George Washington's first. What students would mainly learn would, hopefully, was to not put too much stock in the opinions of a single politician, even if he is the President of the United States. [for the record, I have read only a limited set of these addresses, notable those I included in my Internet Biography of Andrew Jackson.]

In four years we will know how much of the objectives outlined in Barack Obama's speech have been achieved. Probably little.

What we already know is the 2013 State of the Union speech failed to inform Congress or America of the State of the Union. It was filled with misleading statistics, political hype, digs at the Republicans, meaningless tales of individual Americans, and just plain obfuscation. President Obama wants some good things: more confidence in the private sector, resulting in more jobs; world peace (without sacrificing American power or imperialist loot); a higher minimum wage; more careful Federal spending. He even wants both more natural gas production and less global warming. But wanting things is the easy part. We all want to have our cake and eat it too. That is why we are not a nation of savers.

The word "bank" is not mentioned in the speech, except for "food bank." That is a pretty funny thing. Compare Andrew Jackson's speeches, which almost always had something to say about banks. What's wrong with this picture, Mr. President? Could not 90% of the problems of "middle class" Americans be summed up in one word: banks?

His speech provokes the Islamic faithful, which means we must continue to spend more money on bloodshed, or leave the Islamic nations to work out their own fates. "And we will stand steadfast with Israel in pursuit of security and a lasting peace." Which means the private property of the Palestinians will not be returned to them, nor will damages be paid. So the prior sentence, "but we can -- and will -- insist on respect for the fundamental rights of all people," is just a bold-faced lie. The oppression of women in Israel, Ireland, Saudi Arabia and numerous American allies will be overlooked, but used to justify murder with drones in Pakistan, Somalia, Iran, and other states not buckling under our imperialist demands.

As to good jobs, the President wants to fill them with immigrants: "real reform means fixing the legal immigration system to cut waiting periods and attract the highly-skilled entrepreneurs and engineers." Perhaps the President should be required by the Constitution to report on his campaign donations. Then we would know what policies he will pursue.

Getting $9 per hour will not make anyone "middle class." Thirty years ago, even, $9 an hour would not have made a person middle class. Why won't the President use the term "working class?" There are a lot more working class American citizens than middle class ones.

History has shown their is only one sure way to make working class Americans middle class. Unionize them, and use the power of the union (One Big Union, united to seek fairness for all) to take, not just higher wages, but a fair share of capital and a majority share of decision making power. But the state of union organizing is not mentioned.

Nothing about clear cut forests from sea to shining sea. Nothing about mountaintop removal. Nothing about overpopulation. Nothing about reproductive rights.

Nothing about the rapid proletariatization of the work force by robots and artificial intelligence. No honest talk about foreign policy or the destruction of the American economy by the imperialist military budget.

Nothing about the Obama policy of closing down marijuana clinics in states where they are legal; nothing at all about the effects of U.S. recreational drug consumption on crime in the U.S. and in Mexico.

Mr. Obama just proved again that he is a very good political campaigner, but can't settle down to actually governing a nation with liberty and justice for all.

Of course Democrats will find much to love in the speech, and Republicans will find much to hate. Again, illustrating what George Washington and other Founders foresaw, that the party system would be bad for America. That is why political parties are not mentioned in the U.S. Constitution.

Sunday, July 15, 2012

Tax the American Empire

[Note: much of this article first appeared as Post-Imperial Mendocino County at MendoDay.com]

The American economy, the economic crisis of 2008, and ongoing sluggish growth, cannot be understood without first admitting that we are in a post-imperialist era.

We cannot move the economy forward again without getting out of the double-bind we are in: paying for the trappings of imperialism, without its economic benefits.

The federal government's budget is still deeply in deficit mode, yet has not provided enough stimulus to get us up to even moderate growth. So we are not really out of the crisis that swept over us starting in 2008. Food stamps and long-term unemployment benefits have staved off starvation for most citizens, but hardly amount to a long-term solution.

The idea that the United States of America ever went through an imperialist period will surprise many of its citizens. Imperialism often implies an emperor, but in our case it mainly means being able to extract wealth from foreign nations through the exercise of military and economic power.

There was no clear beginning to U.S. imperialism. Grabbing native American Indian lands was a major way of extracting wealth from outsiders even before 1776. Most historians would say modern U.S. imperialism started with the Spanish-American War in which the U.S. grabbed Puerto Rico, the Philippines, and Cuba (we later sort of gave Cuba to its local elite, although the process was not really completed until Fidel Castro came to power). Or you could go back to the Mexican-American War, in which we grabbed the northern half of Mexico.

To understand how we might revive the economy and government, we should focus on U.S. imperialism after World War II. How did we get to that happy situation? From 1929 until just before World War II the United States economy was pretty sleepy . By the late 1940s and into the 1950s the U.S. economy was bustling. Why did World War II make such a difference?

The United States has had some pretty clever leaders. Even in the 1700's many of them wished for our nation to be a Great Power like the British Empire or France. Presidents like James Polk (who grabbed California), William McKinley (Spanish-American War) and Theodore Roosevelt came to symbolize U.S. global ambitions.

It was World War I, by accident or strategy, that became the template for future U.S. success. Under President Woodrow Wilson the U.S. stayed out of the war, selling all the goods our farms and factories could produce to both sides. Then, when Russia had collapsed and Italy, Germany, France and England were exhausted, the President, under pressure from U.S. bankers, found a pretext to declare war.

It was great, World War I. Not that many American soldiers died (just 117,000), but we tipped the balance for Great Britain and France. Germany was defeated. We did not grab any territory to speak of, but we became the world's bankers while leading the world in industry.

The rematch known as World War II went even better. President Franklin Roosevelt rearmed the United States while putting the British Empire even more heavily in our debt. We let the Communists defeat the Nazis and, again, came in towards the end to claim victory and its spoils. English, French, Italian, German, Japanese and Russian factories had been largely destroyed by aerial bombardment. In contrast the U.S. had built many more factories.

As the French and British empires collapsed after the war it was U.S. factories that supplied the goods for most of the world. In the U.S., in the 1950's, most Americans who wanted one could get a job that paid well. An interstate highway system was built, suburbs were built, colleges expanded and filled. The whole imperialist deal was so profitable that even though the U.S. maintained what was by far the world's most expensive military establishment, paying for it detracted little from the economy.

The Sixties were even better, with John F. Kennedy (a Democrat) engineering the biggest tax cuts for the rich in American history. Even those Americans whose race, geographical location, or just plain laziness and incompetence had prevented them from sharing in The American Dream were soon helped by President Lyndon Johnson's Great Society social programs.

The prosperity might have gone on for centuries, but America's capitalists betrayed it. Rival gangs of capitalists pursued opportunities that turned imperialism on its head. It was profitable to keep costs for consumers high in the U.S. It became more profitable to produce the goods sold in the U.S. in other sectors of the world, certain of the "third world" nations like Mexico and Korea, then later China and Brazil. Meanwhile another gang clung to the profits of the military-industrial complex, and even added profits by whipping up a Homeland Security spending bonanza.

As a result American military, homeland security, and domestic budgets had to be skimmed from a thinning layer of middle-class taxpayers. The capitalists received tax cuts, notably special treatment for dividends and capital gains, as well as no taxes on financial transactions. Factory workers, most of them, dropped back into the proletariat, losing their middle-class incomes. Low-paid service work came to make up most of the American economy.

In classic imperialism, as say run by the British Empire from about 1700 to about 1950, the economic idea is to extract wealth from the enslaved nations. The extracted wealth is brought home, and while the rich get most of it, enough is trickled down to the middle class and proletariat to keep them happy and patriotic, or at least not rebellious. It is important to keep the cost of the military used to dominate other nations low enough so there is a net, major profit for the homeland. The Brits were very good at that. They even drafted soldiers from their subject nations and used them quite effectively. The British Empire fell because England exhausted itself fighting Germany, not because the empire itself was not profitable. At the end of World War II, for practical purposes, the Brits had mortgaged their empire to American bankers. We foreclosed.

Starting in the 1990's, and accelerating this last decade, the U.S.A. has done the opposite. You can see from our Trade Deficits that wealth has been draining from the nation for two decades. At the same time we are being bled internally by the military and homeland security industries.

Look at Afghanistan. Where's the loot? We give money to the corrupt government of Afghanistan. We give them weapons. They sell the weapons to the Taliban, who then use them to shoot at U.S. troops. We get nothing out of it. Not oil, not a market for U.S. goods, not slaves or concubines or the usual imperialist loot.

There are only two solutions. One is to tax every nation in the world that we can. That is the classic imperialist solution: give unto Obama the things that are Obama's. The plan probably would not go down very well in most countries. But they would have no choice. Look what we did to Iraq, and most nations don't have the defenses Iraq did.

Taxes should be modest and imposed gradually, so as not to shock the world economy. A 1% sales or income tax on developed allies and a 0.25% to 0.5% tax on less-developed dependents would probably work for a starter. While the rate is low, by taxing some 6 billion people, quite a bit of money would flow into the United States. It would pay for our work as the world's police, and also pay for our education, welfare, bread, and circuses.

The only other solution is to Cut the Military and Homeland Securities budget. Cut it to the size needed to defend us from Mexico and Canada. Something along the size of the New York Police Force budget.
Unfortunately we are maneuvering in is a sea of continued massive stupidity by American capitalists and both the Republican Party and the Democratic Party. Don't expect those bozos to start taxing England, Korea and Pakistan, or to reduce the military budget in a meaningful way, in your lifetimes.

Expect America to continue to decline. As the empire unravels, our homeland will unravel. To keep military muscle, we will loose economic muscle. If we keep on this course, at some point, our colossus will fall.

Saturday, November 5, 2011

Fred Koch, Stalin, and Social Security

The Koch brothers, or the two of them that own Koch Industries, Charles and David, are now well known financiers of the Tea Party and, more generally, the movement to dismantle all social welfare programs at the international, federal, state and local levels. They are the main backers of Herman Cain [See Ready for a Caining?] and for that matter directly or indirectly fund a number of current candidates for the Republican nomination for President of the United States.

Charles and David Koch run a lot of industries. They are smart, competent guys. How did they end up with their current political ideology? Can the rest of us, who are inclined to like Social Security and Medicare, learn anything from the brothers Koch? I think we can learn a lot from examining the history of their father, Fred C. Koch, and his relationship with Joseph Stalin, who was the leader of the Union of Soviet Socialist Republics (Soviet Union) from the late 1920's until his death in 1953.

Fred Koch's father had immigrated to the United States after learning the printing trade in Europe. He owned a small town newspaper, the Tribune-Chief in Quanah, Texas. That means he was one of the chief citizens of Quanah, but in the American scheme of things was a hard-working member of the middle class. Fred's older brother, Anton, stayed with the family business, and thus remained in the middle class. Fred Koch was sent to college, graduating from MIT in 1922 as a chemical engineer. At some point he aspired to being more than middle-class. He became an petrochemical engineer and in 1927 invented a process that improved the efficiency of turning raw oil into gasoline. I count that as a good thing: if you are going to make gasoline, you might as well make it efficiently.

Koch then saw the mean side of monopoly capitalism. He licensed his methods to a number of (relatively) small, independent oil companies. The larger oil companies buried him in litigation, forcing him out of business in the United States. He had more success overseas, where the new Soviet Union became one of his large clients. Joseph Stalin had been Communist Party boss there since 1922 and was effectively dictator by 1928. Stalin decided to collectivize agriculture and at the same time push to industrialize the Soviet Union. While this forced industrialization was no more brutal in total than the capitalist industrialization process had been in Great Britain, Germany, and the United States, it certainly was no less brutal, and served anti-communists with many propaganda points. More significant was Stalin's penchant for imprisoning and executing people (probably 800,000 in total, many of them Communist Party members, not counting those who died of hunger and disease), which was done on a scale that made rough forms of capitalist politics seem minimally violent.

Therein lies a contradiction: the Koch family fortunes are largely based on Communist money. Fred Koch, however, did not like Stalin's methods any more than he liked the monopoly tactics of the Rockefeller family. He became one of the founding members of the John Birch Society in 1958.

It has been a while since I studied John Birch Society doctrine, but my understanding is that, much like George Orwell (who was an anti-Stalin socialist), Birchers believed there was a conspiracy by some of the richest members of the ruling class to use the working class and impoverished non-workers as a weapon to take wealth and political power from the middle class, in particular from small private business owners. Thus to the Birchers communists like Stalin and monopolists like the Rockefellers were at least playing the same game against the middle class, and probably actually cooperating with each other. Recall that by the time the Birch society was founded in 1958 the Rockefeller family had turned liberal, at least by Republican standards. Liberal Republicans of that era favored civil rights, a progressive income tax, and social security. In that era too the conservative wing of the Democratic Party (mostly, but not exclusively, southern Democrats) was against civil rights for African Americans, but had come to accept social security and the income tax.

Fred Koch made his money honestly and made so much that later in life he was, by wealth if not by ideology, a certifiable member of the ruling class. His sons are made of different stuff, inherited money. Thus while Fred's political beliefs were pragmatic (if, as I will show, somewhat mistaken), Charles and David's are ideological, free of any meaningful real-world testing. This does not mean they are stupid or mean-spirited, but they were not able to get a clear view of political, economic and social realities because they were wrapped in a fog of great wealth since birth. They have become, in effect, the very type of capitalists who tried to destroy their father's early engineering business.

I have actually met a number of people who thought highly of Stalinism. Mostly they were either aging CPUSA (communist party U.S.A.) members who refused to believe in reports of Stalin's purges, or young organizers who were angry enough to rationalize killing (in a non-war, non-civil war situation) as a legitimate political tool. In the 1980's in the U.S. you could still find a few thousand such people in the U.S. Today, as best I can tell, they number in the hundreds at best.

It is not right to equate Stalinism with socialism. Before the Russian Revolution most socialists, including most Marxists, were Democrat Socialists. They believed the preferred method for reaching a socialist society was through organizing the working class to vote for socialist parties in free elections. The Bolshevik Revolution was actually a catastrophe for the global socialist movement. The Bolsheviks attacked and eventually destroyed the larger socialist groups (anarchists, Mensheviks, Social Revolutionaries and others) when they consolidated power. According to anarchist thinking the Bolsheviks did not represent the working class achieving power, but the establishment of a new capitalist class that in effect made the state into one big oppressive industrial monopoly.

Outside the Soviet Union, communists worked as hard to destroy other socialist groups as they worked to actually overthrow capitalism.

Socialism does not require a dictatorship. Socialist parties have come to power many times in democracies, and when the voters tired of the government, left power peacefully to become the opposition party. Judging all socialism to lead to Stalinism is like saying all capitalist rulers are just steps in the path to the type of regime General Franco ran in Spain. I may not like Bill Clinton, but I'll take him any day over General Franco.

Socialism can mean government ownership of industry, but how much government ownership of industry is there in the U.S. today? Very little. The Post Office and the TVA are the only significant examples [See Our Socialist Constitution Framers]. Social security is not an industry, it is a national pension system, and there are good reasons the government runs it. Only an ideologist would want to move America back to the days before social security. If you want to get rid of social security, why not get rid of the internal combustion engine, the printing press, and that newfangled Christian religion that vilifies the old fashioned religions of our ancestors?

The Constitution gives Congress the power to promote the general welfare. The most common abuse of that power is when a member of Congress uses that power as a cover to promote the interests of political donors, who are typically already very wealthy.

The idea that social security is a step on the road to socialism is disputed by the Marxists themselves. Most Marxists see the socialist revolution as most likely when the working class, and those unable to find work, are most miserable. Thus food stamps, welfare, Social Security and Medicare are seen as attempts to shore up capitalism. They are the modern equivalent of bread and circuses (we now let private industry take care of the entertainment fix), designed to keep the Democratic Party and its basically capitalistic, imperialistic, corrupt political machine in power.

I think most Americans should agree that freedom has many dimensions. Before the Civil War the slavery of many was the freedom of the few. We reject individual freedom when it is the freedom to take away the freedoms of the rest of us. We don't want the government running Wal Mart or the local bar, but we don't want private industry tearing pieces of flesh out of us like it would if it ran social security. Bad enough the banks are private. We are mostly tired of the medical insurance industry, and medical capitalists and even doctors, tearing more out of us than their services are fairly worth.

My basic conclusion is that it is a very bad idea to let people who are born rich run the government. It is as stupid as having whatever idiot a king has for a son become the next king. Not everyone who is born rich gets as out of touch with reality as the Koch brothers, but there are plenty of smart, hard working thinkers from the middle class who will take better care of our governance. That is as close to the Birch society as I am willing to get.

To the extent I believe in Americanism and the original Constitution, I oppose the existence of a titled nobility. We don't have a system of Sirs and Lords, but we have allowed the economic equivalent to take root. I would like to give the modern interpretation to this phrase of the Constitution [Article I, Section 10]: "No state shall ... grant any title of nobility." A reasonable interpretation of that is that, since great wealth is effectively nobility, no person should be able to accumulate great wealth in their lifetime, and no person should be allowed to inherit great wealth. As to how much wealth constitutes great wealth, I am willing to leave that open to debate for now.