Austerity kills

It is always worth making the effort to recognize that an unnecessary but not pointless austerity politics creates adverse and, sometimes, existential problems for those individuals without the means or power to solve their personal problems. These individuals can only suffer what they cannot avoid. Scot Rosenzweig of Allentown, PA confronted Pennsylvania Governor Corbett with this issue, forcing him to defend his support for his Healthy Pennsylvania project, derided by its critics as CorbettCare. Corbett notoriously refused to accept the greater Medicaid monies authorized by the Affordable Care Act. Corbett eventually proposed a plan that would limit the scope and efficacy of the health care provided by the state of Pennsylvania to its poorest citizens. Currently, thanks to Corbett’s ideologically motivated scheming, Pennsylvania has neither an expanded Medicaid program nor even the lesser CorbettCare. At least one death can be attributed to this lack:

Her death did not faze Corbett, however.

In the tradition

reagan-shrunk

Today, we have this:

alec

Solidarity during the austere age

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.

Obama yokes seniors to a phoney CPI

The Nobel Laureate robs old folks

He’s an adult, you know. And every adult knows that the Bankster Golem is insatiable. Senior citizens can be sated, however. With this, for instance:

Recommended: Michael Hudson: America’s Deceptive 2012 Fiscal Cliff, Part II

Wage Slavery plus debt peonage — these are the fates awaiting the ‘better off’ members of the 99%, Alan Simpson’s “lesser people.” The ‘worst off’ shall continue to find themselves existing on city streets, squatting in vacant land and buildings, suffering one of the many prisons which pockmark the body politic or dying from untreated illnesses. These fates — wage slavery, debt peonage and social outcaste — should not be considered accidents of history. They have obvious systemic causes. The economist Michael Hudson explains in the second of a four-part series:

Today’s economic warfare is not the kind waged a century ago between labor and its industrial employers. Finance has moved to capture the economy at large, industry and mining, public infrastructure (via privatization) and now even the educational system. (At over $1 trillion, U.S. student loan debt came to exceed credit-card debt in 2012.) The weapon in this financial warfare is no larger military force. The tactic is to load economies (governments, companies and families) with debt, siphon off their income as debt service and then foreclose when debtors lack the means to pay. Indebting government gives creditors a lever to pry away land, public infrastructure and other property in the public domain. Indebting companies enables creditors to seize employee pension savings. And indebting labor means that it no longer is necessary to hire strikebreakers to attack union organizers and strikers.

Workers have become so deeply indebted on their home mortgages, credit cards and other bank debt that they fear to strike or even to complain about working conditions. Losing work means missing payments on their monthly bills, enabling banks to jack up interest rates to levels that used to be deemed usurious. So debt peonage and unemployment loom on top of the wage slavery that was the main focus of class warfare a century ago. And to cap matters, credit-card bank lobbyists have rewritten the bankruptcy laws to curtail debtor rights, and the referees appointed to adjudicate disputes brought by debtors and consumers are subject to veto from the banks and businesses that are mainly responsible for inflicting injury.

The aim of financial warfare is not merely to acquire land, natural resources and key infrastructure rents as in military warfare; it is to centralize creditor control over society. In contrast to the promise of democratic reform nurturing a middle class a century ago, we are witnessing a regression to a world of special privilege in which one must inherit wealth in order to avoid debt and job dependency.

What is truly astonishing about this situation is the nature of contemporary finance capital. In essence, it is functionless. It does not exist to generate capital for investment in the real economy. It does not provide safe storage for pension funds, insurance monies, personal savings, etc. It does not even provide the common investor with rational investment programs. Rather, finance capital today is just a system specific mechanism (or, better, set of mechanisms) which extracts massive quantities of wealth from the world. Profit taking — that is its sole purpose. Moreover, it is omnivorous and perpetually famished. It cannot be satiated. Its appetites thus put everyone at risk. It lacks a home, a national identity. It cares not for people, their cultures, societies and well-being. It is everywhere and nowhere.

It is, in a word, the vampire about which so many Americans fantasize.