Posts Tagged ‘Brown University’

Scottish Economist Mark Blyth’s on Neoliberal Economic Cause of Trump and Global Fascism

December 3, 2016

Mike early today put up a piece about a speech by Jeremy Corbyn, in which the Labour leader correctly described the extreme right-wing parties and their leaders as ‘parasites’, feeding off the despair and poverty that had been created through Conservative economic policies. They blamed their economic problems on immigrants, racial minorities and the poorest and weakest members of society. What was needed was for centre-left parties to reject the political establishment, and devise policies that would help people take power for themselves.

The report cited by Mike quoted Corbyn as saying:

“They are political parasites feeding off people’s concerns and worsening conditions, blaming the most vulnerable for society’s ills instead of offering a way for taking back real control of our lives [from] the elites who serve their own interests.

“But unless progressive parties and movements break with a failed economic and political establishment, it is the siren voices of the populist far right that will fill the gap.””

Mike makes the point that this effectively damns New Labour and its legacy. Blair’s espousal of neoliberal, Thatcherite economics allowed the country’s remaining state assets to be sold off by the Tories and Lib Dems, and made the country ready for the rise of far right politicians such as Theresa May and Nigel Farage.

See: http://voxpoliticalonline.com/2016/12/03/far-right-politicians-and-their-supporters-are-parasites-says-corbyn-calling-for-rejection-of-the-establishment/

Jeremy Corbyn isn’t the only person making this point. Over a week ago Michael Brooks, filling in for Sam Seder as the anchor on the left-wing internet news show The Majority Report, discusses the economic causes behind the rise of racist authoritarianism around the world. And it is global. Trump has been elected the next president of the United State, Marine Le Pen’s Front National is leading the polls in France, the neo-Fascist Fidesz party is in power in Hungary, and Brexit in England is part of this pattern.

Mark Blyth, a Scottish political economist and professor of international political economy at Brown University gave a speech at the university’s Watson Institute for International and Public Affairs which laid bare the roots of the origins of these illiberal, Fascistic movements in the massive poverty and social inequality created by neoliberal economics. Brooks plays a clip from his speech, and then adds his own comments afterwards.

Blyth states that from 1945 to 1975, the world’s governments were concentrating on full employment. He states that there is an economic law called the Lucas Critique, which states that in any economic policy, someone will try to game it to serve their ends. And in the case of the strategy of creating full employment, both unions and employers tried to game the system, with the result that inflation increased massively. This principally hurt the creditor class – the financial sector – who decided to hit back by liberating the banks from government control and creating an integrated global economy. This included globalising labour, so that they could not demand fair wages. If they did so, their jobs could be closed down and moved overseas. He also makes the point that the international trade agreements concluded during this period have been made with little regard for the interests of ordinary people themselves. You can see this in the Trans-Pacific trade agreement. If you look this up on the web, you will find a 700 page document negotiated between governments and major corporations, but with little input from civil society. Ditto for the treaties of the European Union. People have realised that for the past thirty years from 1985 onwards, massive amounts of money has been made, but these have all been passed upwards to an infinitesimally small number of people.

The result is massive poverty. He makes the point to his audience at the uni that they don’t have to go very far to see the consequences. All they have to do is go to north-west Providence, in Rhode Island. There they can see the stores offering to cash cheques on demand, or selling or fixing goods cheaply. People are fed up, and use every opportunity to show it. This was demonstrated with Brexit in England and Wales, and in the Constitutional Referendum in Italy.

And there is also a macro-economic underpinning to these movements here. Successive governments have targeted inflation, and Blyth states that he can see no reason why the Lucas Critique should not also apply here. We now have a situation in which 3 trillion euros have been dumped into the money supply through quantitative easing, and it has not caused inflation. This has caused other problems. When banks have been bailed out and taken over by governments, so that they have been dumped on the public, the creditors fight even harder to get their money back. This can be seen in the case of Germany versus the rest of the Eurozone. This has set up a conflict between creditors versus debtors. On the left, it’s produced Podemos in Spain. On the right, it’s created the Front National in France. Trump’s part of this trend. Misogyny and racism are part of the mixture that has thrust him to power, but if you look at areas like America’s rust belt, you also see that part of it is also economic.

Brooks adds that this is true, and like Corbyn, he makes the point that if there is no serious left-wing response which deals with an economic system that has been created to serve a tiny elite, it will open the door to the ugly things that are also present in the system.

In America, this is White Supremacism. He states that it’s in America’s DNA. The country was founded on genocide, slavery, apartheid and racism, of which there are different kinds, including discrimination against Asians and Hispanics. It is a profoundly racist country. The situation has also been made worse through the misalignment in the Democrat Party. There is a split between those who want social liberation, and those who want to reign in the corporate interests and break up the big cartels. This wasn’t quite so pronounced twenty years ago under Bill Clinton, who was willing to use racial demagoguery. Brooks states that the only way to tackle the rise of racism in America is to combine the two goals of creating greater opportunities for women and minorities, and attacking the power of the big corporations. The Third Way, neoliberal nonsense is unable to do this. The age of neoliberalism is over. The reign of neo-Fascism is now in.

Blyth, Brooks and Jeremy Corbyn are all exactly right. But you won’t hear it from the establishment press, or the Beeb, or any of the mainstream news outlets, which are there to serve corporate interests. And those interests want to prop up neoliberalism as long as possible. Hence we have the supposedly liberal press – the Guardian and Independent, viciously attacking Jeremy Corbyn and demanding his removal in favour of a safe Blairite leader. There’s a piece in today’s I newspaper by Janet Street-Porter asking why Ed Balls can’t be leader of the Labour party. She makes the point that he’s a fellow of Harvard University, and so intelligent. Balls academic qualifications aren’t in question here. All of the New Labour clique were well educated men and women, and the majority of them had spent periods studying in America. That’s the problem. They are the products of the British-American Project For the Successor Generation, a Reaganite programme set up to influence rising politicians in the 1980s so that they followed the Atlanticist line. And you can see the effects in the case of Tony Blair. When he started out, he was for unilateral nuclear disarmament. They he spent four weeks in America as a guest of the think tanks involved in the programme, and came back a convinced supporter of Britain’s nuclear deterrent. And Balls was an integral part of New Labour, and the Thatcherite/ Reaganite policies it pursued.

And that’s exactly what Janet Street-Porter and the other, supposedly left-wing hacks want: Thatcherism, but under a left-wing guise, which is essentially no different from that of the Tories.

It’s why Tony Blair has also returned, and is talking about his plans to set up an institute to promote ‘centrist’ politics next year. His politics aren’t centrist, as Mike’s pointed out: they’re far right, neo-liberal. They punish the poor, the ill, the unemployed and disabled for the profit and big businessmen like David Sainsbury. I’ve no doubt Blair is genuinely afraid of the rise in racism across the Continent. But he’s also terrified of the re-emergence of genuine socialism and of ordinary citizens taking back power from the corporations and the bankers. Hence his stupid and misguided plans for the institute. He hasn’t realised that his policies are part of the long chain of causes of the present political crisis, going all the way back to Thatcher. His institute isn’t going to solve the problem of racism and authoritarianism across Europe. It’s going to make it worse. If it ever gets going, of course.

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Counterpunch on the Putin’s Non-Existent Threat to the Baltic States

July 14, 2016

Anti-Nato Headline

Russian anti-US Cartoon

Anti-Nato Headline (top) and cartoon against escalating American militarism (bottom). Both from the Russian political magazine, Novoe Vremya, for 17th December 1982.

Last week, NATO began sending reinforcements into Poland and Estonia, and began a series of manoeuvres close to the Russian border. The supposed reason for this is to send a warning to Putin against a possible invasion of those countries. The Russians have been attempting to fly military planes over Estonia. Actually, this isn’t anything particularly new. They’ve been trying to do it to us every week since the beginning of the Cold War. Usually what happens is that we send a couple of our jets up to intercept them just as they’re approaching Scotland. The Russian flyboys then take the hint, and fly off back to the former USSR. It clearly ain’t a friendly gesture, but it’s been going on so long, that’s it not sign of an imminent invasion either. It’s just business as usual.

Except that the build up of NATO troops in eastern Europe clearly isn’t business as usual. It looks very much like a return to the Cold War of the early 80s, when Thatcher and Reagan ranted about the USSR being ‘the evil empire’, and the world teetered on the brink of nuclear Armageddon. There were at least three occasions before the Fall of Communism, when the world really was almost a hair’s breadth away from nuclear war. Nearly three generations of people grew up in it’s shadow. I can remember the way it terrified my age group, when we were at school at the time. Hence the two illustrations at the top of the page, taken from a Russian language magazine at the time. One’s a headline for an article attacking NATO, the other’s a cartoon against advancing American militarism.

The American left-wing magazine, Counterpunch the other day published an article attacking the supposed rationale for the NATO manoeuvres. These aren’t just in Poland, but also include Lithuania and Romania. According to the article ‘Putin’s “Threats” to the Baltic: A Myth to Promote NATO Unity’, by Gary Leupp, the manoeuvres are a response to the book, 2017: War with Russia, by the deputy commander of NATO, Sir Alexander Shirreff. Shirreff predicts that by May next year, Russia will invade the eastern Ukraine and Latvia. Leupp argues that the prediction of a Russian invasion of the Baltic states, with Latvia singled out as a particular target, comes from Putin describing the collapse of the USSR as a ‘catastrophe’ and tensions between the Russians and the now independent Baltic states of Lithuania, Latvia and Estonia. Putin, so it is believed, is a new Stalin aiming at the revival of the USSR. The also point to the Russian war with Georgia in 2008, and events in Ukraine two years ago in 2014, to show that the threat from Russia is real.

Leupp’s article argues that it is nothing of the sort. The Russians have denounced NATO expansion up to their borders and held manoeuvres of their own, but have also continued with offers of co-operation and referred to the NATO nations as ‘our partners’. He argues that the tensions with Russia in the Baltic states are due to the stripping of the Russian minority in these countries of their rights as an ethnic minority, and increased anti-Russian nationalism, after the states gained their independence from the former Soviet Union in 1991. Russia certainly sees itself as the protector of ethnic Russians elsewhere, including the Baltic and Ukraine, but points out that this does not mean that it is planning an invasion. It is also much smaller and weaker, militarily, than NATO. NATO forces comprise nearly 3 1/2 million squaddies, compared to Russia, which has just under 800,000. NATO spends nearly $900 billon on defence, while Russia spends $70 billion.

He also argues that the war between Russia and Georgia wasn’t a simple case of Russian aggression either. They went into defend South Ossetia and Abkhazia, small countries that had been forcibly incorporated in Georgia, and which wished to break away. He compares it to the NATO dismantling of Serbia, when Kosovo was taken out of Serbian control. This was against international law, but justified by Condoleeza Rice against protests from Spain, Greece and Romania.

He also states that the support the Russians have given to their ethnic fellows in the Donbass region in Ukraine, against the Fascist-backed Ukrainian government, hardly represents an invasion.

He also argues that the existence of NATO, and its supposed necessity is never discussed or questioned, with the exception of a recent piece in the Boston Globe by Stephen Kinzer, a senior academic at Brown University. He didn’t argue that NATO was unnecessary, only that we needed less of it. This was followed by a piece by Nicholas Burns, a member of George W. Bush’s administration, and now a lecturers in diplomacy at Harvard. Burns states that NATO is necessary for four reasons: defence against Russian aggression; the fragmentation of the EU following Britain’s decision to leave; violence from North Africa and the Israel-Syria region spreading into Europe, and to counter the lack of confident leadership in responding to these issues from Europe and America.

Burns and General Jim Jones, a military advisor to Obama, believe that NATO should station permanent troops in the Baltic, the Black Sea region, the Arctic and Poland, and be ready to send American forces in to help the Poles defend themselves. Burns also argues that NATO is needed because of the growing threat of isolationist forces – meaning Trump – in the US. He finally concludes that it seems to be an endorsement of Hillary Clinton, who has, in contrast to Trump, been very keen to bomb Libya, support the invasion of Iraq, and now wants to bomb Syria.

See the article at: http://www.counterpunch.org/2016/07/12/putins-threats-to-the-baltics-a-myth-to-promote-nato-unity/

Meanwhile, the prospect of a real, lasting peace between the West and Russia, which began with the thaw between Reagan and Gorbachev, is now threatened by a new generation of militarists, including the hawkish Shrillary. It’s another reason, apart from her bloody legacy when she was in charge of Obama’s foreign policy, why she should not get in the White House any more than Trump should.