Green Capitalism

Is it an oxymoron or just a plain dumb idea? I believe we can easily guess Rob Urie’s answer to this question:

The bottom line is one of commensurability. Economic production that produces toxic externalities like global warming, dead oceans, undrinkable water, unbreathable air, etc, depends on assigning little or no value to these. To make this very clear, Western economic ‘accounting’ places no value on these, on the most fundamental necessities of living beings, by design. As Oscar Wilde put it, a cynic is someone who knows the price of everything and the value of nothing. This is in fact a summation of Western economics; circumscription of the ‘knowable’ world by what has had a price tag put on it. The externalized costs of capitalist production are real— more real than the stuff in stores that is only ‘cheap’ because the true costs were lobbed off on people who haven’t yet fought back. To Mr. Krugman’s argument, even if technological innovation did reduce carbon emissions the people who would reap the benefits are not the same people who will pay the consequences— more carbon emissions is more even if the rate of growth is reduced.

Global warming is but shorthand for the increasingly conspicuous fact that the quest for ‘stuff’ has turned the entire planet into a noxious garbage dump. This concern might rightly be considered effete if ‘we,’ broadly considered, could exist in the garbage that some of us have created. But as global warming suggests, we can’t. The time for gimmicks, ‘technology,’ was a half century ago. And unless you missed this, the West is still plenty rich— rich in approximate proportion to the social and environmental catastrophes that capitalism has wrought. The question today is who pays, not what the costs are.

First Black President© to open Plantations!

A White House press release announced the good news:

For decades before the economic crisis, local communities were transformed as jobs were sent overseas and middle class Americans worked harder and harder but found it more difficult to get ahead.  Announced in last year’s State of the Union Address, the Promise Zone Initiative is part of the President’s plan to create a better bargain for the middle-class by partnering with local communities and businesses to create jobs, increase economic security, expand educational opportunities, increase access to quality, affordable housing and improve public safety.  Today, the President announced the next step in those efforts by naming the first five “Promise Zones”.

The first five Zones, located in San Antonio, Philadelphia, Los Angeles, Southeastern Kentucky, and the Choctaw Nation of Oklahoma, have each put forward a plan on how they will partner with local business and community leaders to make investments that reward hard work and expand opportunity.  In exchange, these designees will receive the resources and flexibility they need to achieve their goals.

Each of these designees knows and has demonstrated that it takes a collaborative effort – between private business and federal, state, tribal and local officials; faith-based and non-profit organizations; children and parents – to ensure that hard work leads to a decent living for every American, in every community.

Good jobs for everyone? Well, no. The program is limited in scope (it does not include everyone in need) and lacks a living wage requirement (wages and benefits will reflect the labor market for unskilled labor). Is this welfare for the common man and woman? Again, no. The program will be formed around tax breaks, regulation suspensions and similar corporate welfare programs. The tacit goal is to create a government sponsored low-wage, low-regulation labor market in areas which suffer from a labor market surplus. The program is, in fact, a rehash of what were once called Urban Enterprise Zones. The Promise Zones are, plainly put, plantations, as Mike Whitney pointed out:

Plantations were a familiar feature of the antebellum South, but were abandoned following the Civil War. Now a new generation of corporate kleptocrats want to revive the tradition. They think that weakening consumer demand and persistent stagnation can only be overcome by skirting vital labor protections and shifting more of the cost of production onto workers. Obama’s promise zones provide a way for big business to slip the chains of “onerous” regulations and restore, what many CEO’s believe to be, the Natural Order, that is, a Darwinian, dog-eat-dog world where only the strongest and most cunning survive.

I wonder if Foxconnthe “we drive our employees to commit suicide” people — will open an Arbeitslager in the United States? They surely are the kind of company Obama wants to attract.

The PRC — A worker’s paradise


Capitalism and US Oil Geo-Politics » CounterPunch

Rob Urie has provided us with a concisely written essay which identifies the predicaments generated by the capitalist democracies in the West as well as by the global empire governed by power elites located in Washington, DC and Wall Street. Reading Urie’s essay is worth the effort.

BOA meant DOA

Should anyone find this event surprising? No, they should not. Moritz Erhardt was a commodity. He was nearly fungible. Bank of America could easily find someone to replace him if it had wanted to do so. As such, Erhardt needed to prove his worth to his current and any future employer, doing so while knowing that the job market has been and will remain tight. There ought to be a law, and there is such a law when the hyper-exploited laborer is a medical resident working in the state of New York. Known as the Libby Zion Law. Ms. Zion died when severely overworked medical residents blundered into prescribing medicine for her that would prove fatal. Nationally, medical resident’s hours are now capped, albeit at an astonishing 80 hours per week! There is yet no federal law addressing this matter. There are, however, compelling personal and socio-economic causes which produce deaths like Mr. Erhardt’s. The problem, of course, is an intrinsic feature of capitalism. A commodity like Mr. Erhardt has monetary value only insofar as it produces for those who employ it. Despite his impressive credentials, Mr. Erhardt would soon need a job. He gave his life to secure a good one.

Good question

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.