Tag Archives: Austerity Politics

Solidarity during the austere age

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Aditya Chakrabortty, writing for the Guardian, considered Sweden’s recent and surprising troubles:

More than 20 cars torched in one night. School classrooms gutted by fire. Fifty far-right extremists chasing immigrants around a suburb.

You probably haven’t seen much about it in the papers, but for the past week Sweden has been racked by rioting. The violence began in a suburb of Stockholm, Husby, and spread around the capital’s edge before other cities went up in flames. Police have been pelted with stones; neighbourhoods have turned into no-go areas, even for ambulances. Such prolonged unrest is remarkable for Stockholm, as those few reporters sent to cover it have observed. Naturally enough, each article has wound up asking: why here?

It’s a good question. Don’t surveys repeatedly show Sweden as one of the happiest countries (certainly a damn sight cheerier than Britain)? Isn’t it famous for its equality, its warm welcome to immigrants? Whatever happened to Stockholm, capital of progressivism, the Mecca towards which Guardianistas face for their daily five minutes of mindfulness?

We all know the cliches, but the reality is they no longer fit the country so well. Whether it’s on the wealth gap, or welfare, or public services, Sweden is less “Swedish” than it has ever been. As in other continental capitals, the Stockholm version of the “European social model” is an increasingly tattered thing, albeit still appealed to by the political elites and still resonant in the popular culture. But the country seized by turbulence last week is becoming polarised, and is surrendering more of its public services over to private businesses (sometimes with disastrous effects). Those riot-scene correspondents ought not to be asking: why here? A better question, surely, is: if such instability can happen here, what might unfold elsewhere — including Britain?

Rioting has occurred in other OECD countries. Most notably, they took place in Austria, Britain, France, Germany, Greece, Spain and Turkey since the onset of the Great Recession. The United States also produced the peaceful Occupy Movement, which the various governmental bodies suppressed with rioting police forces. The causes of unrest are the same across Europe and in the United States: Growing inequality, social polarization, austerity and, in some instances, economic stagnation. Sweden is a special case, as Chakrabortty avers. Its welfare state was notable for its commitment to collective security and to economic growth. The Swedish economy continues to grow. But the Swedes are slowly jettisoning their commitment to collective security, to solidarity. This is when the authorities need the police to keep order. This is when the democratic class struggle becomes class warfare.

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Quote of the day

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Serge Halimi, editor of Le Monde Diplomatique, wrote:

Some revelations come as little surprise. It’s not really news that some politicians love money and like to spend time with those who have lots of it. Or that they sometimes behave like a caste that is above the law. Or that the tax system favours the affluent, and that the free circulation of capital enables them to stash their cash in tax havens.

The disclosure of individual transgressions should lead to scrutiny of the system that created them. But in recent decades, the world has been changing at such a pace that it has outstripped our analytical capacity. With each new event — the fall of the Berlin Wall, the emergence of the Brics (Brazil, Russia, India, China, South Africa), technological advances, financial crises, Arab revolutions, European decline — experts have fallen over themselves to announce the end of history or the birth of a new world order.

Beyond these premature birth and death notices, three main, more or less universal, tendencies have emerged which warrant initial exploration: the marked rise in social inequality, the disintegration of political democracy and the decline of national sovereignty. Every new scandal is like a pustule on a sickly body: it allows us to see each element of this trio re-emerge separately and operate together. The overall situation could be summed up thus: governments allow their political systems to drift towards oligarchy because they are so dependent on the mediation of an affluent minority (who invest, speculate, hire, fire and lend). If governments balk at this abandonment of the popular mandate, international pressure from concerted financial interest ensures they topple.

Oligarchy, Halimi suggests, is scarcely incompatible with a modern democracy. Both can coexist within a social system. This point, the uncomplicated compatibility of oligarchy and democracy, has slowly moved to the forefront since December, 1991, the moment at which Bush the Elder’s New World Order emerged in its purest form. Our modern oligarchs rule indirectly, by capturing a political elite which, although elected by the demos, depends on the former for resources and guidance. The oligarchs thus rule because of the political power generated by their enormous wealth.

The United States, of course, provides a special case of this general condition. Today it is the only global empire, an unmatched military colossus and a country which sits beyond the rule of law, according to its self-understanding. It also remains exceptionally wealthy and provides the world with its commonly used reserve currency. Sheldon Wolin depicted it as having an inverted totalitarian system, that is, as an ‘as if’ democracy embedded within an empire and a stagnant economy. Democracy in America today produces results that mostly affirm oligarchic demands, a system of markets strongly distorted by finance capital and the prerogative powers of the security-surveillance apparatus. A political commitment to economic austerity and massive wealth inequality, to the imprisonment of the poor as a means of social control and to imperial domination at home and abroad makes the United States a leader among the many countries committed to this kind of democracy. Democratic elections remain in effect. They are, however, ineffective mechanisms for holding the powerful accountable. They are, instead, noisy spectacles which generate a weak kind of political legitimacy for the governed and a politically effective legitimacy for the social system as a whole. This system legitimating originates in the common realization that little to nothing can be done to successfully resist the irresistible force which is society.

Americans ought to consider these points before they vote, whenever they listen to their political leaders and when they wonder how they can make it through the year.

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Quote of the day

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As a response to the post-Boston Lockdown euphoria, Andrew Levine writes:

For anyone who watched the World Trade Center collapse on television in the days after September 11, 2001, the repetitive display of pictures of the terror attack on the Boston Marathon was déja vu all over again.

Not having been there, I can’t judge the mood, but reports of the demonstrations after the capture of nineteen year-old Dzhokhar Tsarnaev were disturbingly familiar too. The chant — “USA, USA” — recalled the reaction to the news that Barack Obama’s assassins had finally gotten to Osama Bin Laden and dumped his body into the sea — in time for the upcoming elections.

Perhaps the comparison is unfair. As in New York and Washington after 9/11, the crowd was surely expressing solidarity with the victims and also relief that the ordeal was finally over. Civic pride, an estimable virtue, was on display too.

And even if the demonstrations had a jingoistic tinge, people cooped up inside all day watching Wolff Blitzer can justifiably plead mitigating circumstances. It requires fortitude to endure mindless commentary masquerading as journalism — cable news, in other words — and not run amok.

Greek tragedies, those of Aeschylus especially, recount the (fragile) triumph of civilization over primitive longings for revenge. This is the basis for the rule of law and the monumental advances that follow from it.

Too bad for us, and for the world, that, under the leadership of our two twenty-first century Presidents, the Lesser Evil one especially, we Americans seem to be abandoning lessons learned nearly two and a half millennia ago.

It isn’t just the rule of law that George W. Bush and Barack Obama have put in jeopardy. Under their leadership, ours is becoming a “civilization” that, without shame, uses revenge as a pretext for war.

It would be wrong to claim that war-making is the only project at which the United States excels. The United States mostly loses the wars it fights. To be sure, the Pentagon can destroy states and societies. But it leaves wastelands ruled by militaristic kleptocracies in its wake.

And what of Boston today? Levine continues:

An entire metropolis in lockdown? Thousands, perhaps tens of thousands, of militarized police arrayed against a lone wounded kid who, it turns out, was bleeding almost to death under a tarp covering a boat in someone’s driveway?

Austerity got left behind. Millions for the illusion of “homeland security,” not one penny for anything that actually makes people better off!

Events like the Boston Marathon Bombing and its aftermath are as significant as they are bizarre. They point to a future wherein the security-surveillance apparatus often and openly impinges on America’s somewhat civil everyday life, that is, to a future moment when our inverted totalitarian system becomes an obvious dictatorship. This is one implication that can be identified in the massive official response to the wounded fugitive, Dzhokhar Tsarnaev. The Tsarnaev brothers were considered members of Boogey Man’s legion. Uncle Sam — Superpower! — had to take the revenge in order to cleanse himself of the stain generated by the bombing. The prodigious waste of money involved was as necessary as the initial dénouement, Dzhokhar Tsarnaev’s capture. There is always money ready at hand for such projects, even in an age of planned deprivation.

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A vicious man bites the dust

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Edward Koch, onetime mayor of New York City, died today. Heart failure was the putative cause. So, we now know he had a heart, thus debunking rumors to the contrary.

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Good question

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Michael Hudson asks:

This pro-austerity mythology [which animates orthodox economics and economic policy in the United States and elsewhere] aims to distract the public from asking why peacetime governments can’t simply print the money they need. Given the option of printing money instead of levying taxes, why do politicians only create new spending power for the purpose of waging war and destroying property, not to build or repair bridges, roads and other public infrastructure? Why should the government tax employees for future retirement payouts, but not Wall Street for similar user fees and financial insurance to build up a fund to pay for future bank over-lending crises? For that matter, why doesn’t the U.S. Government print the money to pay for Social Security and medical care, just as it created new debt for the $13 trillion post-2008 bank bailout?

The answer to these questions: Banks and other financial institutions want to keep as much of their income as they can. Transaction fees, regulations, oversight, taxes, etc. — these consume profits. America’s banks want to transfer these costs to others, namely, to those individuals who lack the political power to defend their standard of living. This cost transfer project amounts to a hidden and sometimes obvious tax the government levies on the 99%. When coupled to a system of risky and fraudulent financial transactions, elite looting and private debt creation, this cost transfer project amounts to little more than a predatory political economy.

The ridiculous fiscal cliff debate which now dominates America’s public life is but a crude expression of this predatory political economy.

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The FBI considered the Occupy Movement a terrorist threat

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From a PCJF news release:

FBI documents just obtained by the Partnership for Civil Justice Fund (PCJF) pursuant to the PCJF’s Freedom of Information Act demands reveal that from its inception, the FBI treated the Occupy movement as a potential criminal and terrorist threat even though the agency acknowledges in documents that organizers explicitly called for peaceful protest and did “not condone the use of violence” at occupy protests.

The PCJF has obtained heavily redacted documents showing that FBI offices and agents around the country were in high gear conducting surveillance against the movement even as early as August 2011, a month prior to the establishment of the OWS encampment in Zuccotti Park and other Occupy actions around the country.

In other words, according to Mara Verheyden-Hilliard, the Executive Director of the PCJF:

“These documents show that the FBI and the Department of Homeland Security are treating protests against the corporate and banking structure of America as potential criminal and terrorist activity. These documents also show these federal agencies functioning as a de facto intelligence arm of Wall Street and Corporate America.”

It is always good to have allies in high places….

Along with the thugs they authorize….

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