For Profit

By Malcolm Martin

19/05/08 "ICH" -- - Our children are taught that the United States of America is a democracy. As the tale is told, at the founding of the nation, a government “of, by, and for the people” was established. Four score and seven years later, a President Abraham Lincoln called the nation’s people to join and die in a great civil war that such a form of government might not perish from the earth and their eventual victory preserved American democracy into the future.

Those children can someday refer to the sermons of the Rev. Jeremiah Wright for the full story. But aside from how closely this lesson is in accord with the historic truth, the idea has today become an outright lie and an utter absurdity. The United States of America is now better described as a corporatocracy. The government is owned and the people are dictated to by these capitalist creations whose God is Mammon. Ironically as Lincoln spoke his immortal words at Gettysburg, the Industrial Revolution had begun to generate these entities that would have completely removed any vestige of American democracy seven score and five years later.

Corporations are, of course, different from people. They are devoid of human emotion. They are constitutionally unable to generate empathy. They feel nothing if people suffer exploitation, if people live in misery, or if people die horribly. Union Carbide was unaffected by the thousands dead and dying in Bhopal. It registered only on a balance sheet as a $470-million loss taken for the sake of future corporate viability under a new name, Dow Chemical. The corporation cannot be reasoned with, pleaded with, or shamed into changing course even in times like these, when life on the planet hangs in the balance. McDonald’s is in the process of teaching Starbucks that even the pretense of a social conscience is too expensive a marketing ploy.

The corporation recognizes and reacts only to threats to its air supply—profits. So figuratively speaking; corporations do share something with human beings. They have an instinct for self-preservation and if they are deprived of a life giving element they die. While human beings must have oxygen and water, the corporation’s lifeblood is those quarterly profits. The corporation must make a profit and then continue making ever greater profit. Corporate profits must grow, forever! Irrational, impossible, unsustainable but that is in the nature of the beast—much as lemmings are pushed into the sea.

The largest US oil corporations ExxonMobil, ConocoPhillips, and Chevron have registered world record profits for the last several years. But Big Oil cannot afford to rest! Beating those records is now a fight for survival into the future. The price of gas, nearing $4.00 per gallon, must continue upwards. The government regulatory agencies must continue to “accidentally” give up oil royalties revenue, the President must continue pushing for exploration in the Alaskan wilderness and off the Gulf Coast, the Congress must continue making theatrical calls for price-gouging investigations and stay away from actual windfall profits tax legislation. Damn public opinion, the US military must remain in Iraq and must soon assault Iran to secure the Middle East’s vast oil reserves.

The parameters are the same in every corner of the global economy. The maximum profit is a product of the greatest possible productivity and the lowest possible wage. US corporations have moved everything that isn't nailed down to lower wage countries. Nothing is made in today’s de-industrialized United States. American consumer's service calls are answered in Ireland and India. Major League baseballs are made in Haiti. AirJordan’s come out of Nike's sweatshops in Indonesia. Microsoft conducts 85% of its research in the US so Bill Gates wants to lift H-1B visa restrictions to bring the low wage workers here. Halliburton is now headquartered in Dubai and preparing to receive its old boss, Dick Cheney, in his retirement years.

To survive under their profit imperative, corporations must undertake a never ending process of consolidation. There is consolidation by horizontal integration. For instance, numerous US corporations once dotted the auto making landscape. In the recent past it was down to the Big Three. Today Chrysler is doomed, Ford is on life support, and General Motors is on its knees. In the corporate world of the near future cars will be made in Japan, or China, or India. Ultimately, the industry will settle in one corporate entity.

Then there is consolidation by vertical integration and its heavyweight champion is Wal-Mart, the world’s largest corporation. Wal-Mart has made a partner of the Chinese government. Working together, the partners have turned China into a vast subsistence-wage labor camp. China supplies Wal-Mart so it has no need of domestic vendors like the now destroyed Rubbermaid. Armed with the lowest production costs, Wal-Mart’s rise up on every other street corner selling every commodity imaginable and every service the corporation can get its hooks into. Wal-Mart lays waste to local economies and then picks up the pieces to become the only butcher, baker and candlestick maker in town. The corporation recently moved to provide banking services in its stores.

The US government has been hollowed out during the rise to absolute power of the corporations. Elections have become an elaborate “reality show” that plays out on corporate television for viewers entertainment. If you watch FOX, the reality is filtered through Rupert Murdoch’s Newscorp, NBC is General Electric news, CNN is Time/Warner news, ABC brings you into Disney’s world, and Viacom regularly checks the iconic CBS news department to make sure Edward R. Murrow is still dead and buried under a mountain of infotainment. That is when Viacom is not preparing America’s youth for slavery and death through MTV and B.E.T.

The actual counting of the American people’s votes is done by the corporations—giant defense contractor United Technologies recently moved to take the job off Diebold’s hands. Corporate sentinels, the lobbyists, roam the halls of government enforcing discipline among the hired hands, allowing the most servile to feed longest at the public trough. So the Congress has not passed legislation and the Supreme Court has not decided a case, in which significant wealth was involved, in favor of the people in thirty years. Each and every decision of all three branches of the US government now transfers wealth from the people to their corporate masters.

The corporations now have in their sights the last remaining institutional pillars of American democracy. The Business Roundtable, the Gates Foundation and the Walton Family Foundation are working mightily to smash the public schools. Wall Street is funding the effort to gain control of the Social Security trust fund for its investment bankers. And the whole corporate gang is intent on “starving the beast” or killing state and local governments. Their success in this effort is probably best expressed in California’s $17.4 billion budget deficit and Florida’s crushing $5 billion revenue shortfall this fiscal year.

Then finally, there is the most ominous development of all. The corporations have begun forming their own Praetorian Guard. The massacre of Iraqi civilians and the patrolling of the hurricane ravaged streets of New Orleans have made Blackwater Worldwide, formerly Blackwater USA, the most famous of the rising corporate armies. Contrary to any notion of cost effectiveness, Blackwater mercenaries protect US State Department personnel in Iraq instead of the regular military. It seems not to make sense, unless the corporatocracy is looking ahead to a day when they can no longer trust the US military to carry out attacks on an American people’s democratic resistance striking at their profits—their air supply.

Neoliberalisme og udviklingsøkonomier

Den tidligere CIA-analytiker og professor emeritus i politologi, Chalmers Johnson havde forleden en ret interessant artikel på Truthdig, hvor han gennemgår den prisvindende Cambridge-økonom Ha-Joon Changs nyeste bog "Bad Samaritans: Rich Nations, Poor Policies and the Threat to the Developing World".

Udrag:

In Chang’s conception, there are two kinds of Bad Samaritans. There are the genuine, powerful “ladder-kickers” working in the “unholy trinity” of the International Monetary Fund (IMF), the World Bank, and the World Trade Organization (WTO). Then there are the “ideologues—those who believe in Bad Samaritan policies because they think those policies are ‘right,’ not because they personally benefit from them much, if at all.” Both groups adhere to a doctrine they call “neoliberalism.” It became the dominant economic model of the English-speaking world in the 1970s and prevails at the present time. Neoliberalism (sometimes called the “Washington Consensus") is a rerun of what economists suffering from “historical amnesia” believe were the key characteristics of the international economy in the golden age of liberalism (1870-1913).

Thomas Friedman calls this complex of policies the “Golden Straitjacket,” the wearing of which, no matter how uncomfortable, is allegedly the only route to economic success. The complex includes privatizing state-owned enterprises, maintaining low inflation, shrinking the size of the state bureaucracy, balancing the national budget, liberalizing trade, deregulating foreign investment, making the currency freely convertible, reducing corruption, and privatizing pensions. It is called neoliberalism because of its acceptance of rich-country monopolies over intellectual property rights (patents, copyrights, etc.), the granting to a country’s central bank of a monopoly to issue bank notes, and its assertion that political democracy is conducive to economic growth, none of which were parts of classical liberalism. The Golden Straitjacket is what the unholy trinity tries to force on poor countries. It is the doctrinal orthodoxy taught in all mainstream academic economics departments and for which numerous Nobel prizes in economics have been awarded.

In addition to being an economist, Ha-Joon Chang is a historian and an empiricist (as distinct from a deductive theorist working from what are stipulated to be laws of economic behavior). He notes that the histories of today’s rich countries contradict virtually all the Golden Straitjacket dicta, many of which are logically a result rather than a cause of economic growth (for example, trade liberalization). His basic conclusion: “Practically all of today’s developed countries, including Britain and the US, the supposed homes of the free market and free trade, have become rich on the basis of policy recipes that go against neo-liberal economics.” All of today’s rich countries used protection and subsidies to encourage their manufacturing industries, and they discriminated powerfully against foreign investors. All such policies are anathema in today’s economic orthodoxy and are now severely restricted by multilateral treaties, like the WTO agreements, and proscribed by aid donors and international financial organizations, particularly the IMF and the World Bank.

The Third World was not always poor and economically stagnant. Throughout the golden age of capitalism, from the Marshall Plan (1947) to the first oil shock (1973), the United States was a Good Samaritan and helped developing countries by allowing them to protect and subsidize their nascent industries. The developing world has never done better, before or since. But then, in the 1970s, scared that its position as global hegemon was being undermined, the United States turned decisively toward neoliberalism. It ordered the unholy trinity to bring the developing countries to heel. Through draconian interventions into the most intimate details of the lives of their clients, including birth control, ethnic integration, and gender equality as well as tariffs, foreign investment, privatization decisions, national budgets, and intellectual property protection, the IMF, World Bank, and WTO managed drastically to slow down economic growth in the Third World. Forced to adopt neoliberal policies and to open their economies to much more powerful foreign competitors on unequal terms, their growth rate fell to less than half of that recorded in the 1960s (1.7 percent instead of 4.5 percent).

Since the 1980s, Africa has actually experienced a fall in living standards—which should be a damning indictment of neoliberal orthodoxy because most African economies have been virtually run by the IMF and the World Bank over the past quarter-century. The disaster has been so complete that it has helped expose the hidden governance structures that allow the IMF and the World Bank to foist Bad Samaritan policies on helpless nations. The United States has a de facto veto in both organizations, where rich countries control 60 percent of the voting shares. The WTO has a democratic structure (it had to accept one in order to enact its founding treaty) but is actually run by an oligarchy. Votes are never taken.

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Videre læsning

Ha-Joon Chang: "Kicking Away the Ladder: The “Real” History of Free Trade" - Foreign Policy in Focus.

Læs derudover i forlængelse af ovenstående min anmeldelse af Naomi Klein's "Shock Doctrine: The Rise of Disaster Capitalism" der ligeledes omhandler udviklingsøkonomi og neoliberalistisme.