Posts Tagged ‘Free Market Economics’

Trump Cuts Funding to Anti-Nazi Programmes

August 17, 2017

More evidence of Trump’s blatant sympathies with real Fascists and White supremacists. In this clip from The Young Turks, presenters Cenk Uygur and Ana Kasparian talk about Trump cutting funding to counter-terrorist programmes focusing on Nazism and White racist terrorism. Late in his presidency, Barak Obama gave a $400,000 grant to a group, Life After Hate. This is a group dedicated to getting people out of Nazi and White racist groups without them suffering retaliation from their former national comrades. This has now been dropped. They make the point that Obama wasn’t entirely a figure of unalloyed moral purity here. Obama left it late to give money to the group because he was intimidated by Rush Limbaugh.

Limbaugh’s a notorious blowhard on right-wing radio. He’s been around spreading hate and promoting free market Reaganonomics to his declining audience since the 1980s. He’s also a massive hypocrite, as he was caught a few years ago trying to smuggle through customs a large quantity of prescription drugs from the Caribbean, despite his denunciations of drug abuse. Hopefully, he won’t be around much longer as his station’s in financial trouble. It’s losing backers because they’ve finally woken to the fact that, rather than being a powerhouse of right-wing propaganda, he’s actually got fewer listeners than College radio stations.

After Trump cut funding to Life After Hate, there was a 20 per cent increase in calls for help to the organization from people fearing signs of radicalization in themselves or others.

Trump also froze $10 million of funding to the Countering Violent Extremism initiative of the FBI and Department of Homeland Security. This wasn’t because Trump was not concerned about the threat posed by terrorist groups. He was just concerned with the threat posed by Muslim organisations, and wanted to sort through the funding to that it could be stopped for White racist organisations.

This was despite an official report from the FBI and the Department of Homeland Security stating that White racist organizations were responsible for 49 homicides in 26 terrorist attacks. This was a greater proportion than other terrorist groups.

Trump also cut $900,000 of funding for a deradicalisation programme being run by the University of North Carolina at Chapel Hill for the same reason. It didn’t just focus on Muslims but included White nationalists.

Uygur and Kasparian also note that the Trump administration is stuffed full of people like Sebastian Gorka and his wife, Katharine, who believe that there is no White racist terrorism and are fanatically anti-Muslim. Uygur states that Gorka was known in far right, anti-Muslims circles for a long time before he joined Trump’s government.

That isn’t all. Gorka has also been a part of militant Hungarian nationalist and far right-wing organisations. These are not just anti-Muslim, but anti-Semitic. I’ve put up pieces from, I think, Sam Seder’s Majority Report where he discusses how Gorka has not only been a member of these organisations, but also sports the insignia of one of nationalist groups led by Admiral Horthy. Horthy was the dictator of Hungary from the 1920s to the end of the Second World War. He was another anti-Semite, who allied the country with Nazi Germany. Late in the War, when the Nazis were losing, he allowed them to round up and send 400,000 Hungarian Jews to the death camps. Tony Greenstein in one of his articles has pointed out that by this time, Germany was in such a weak position that he could have successfully refused to allow this, as the Nazis would have been desperate to keep one of their few remaining allies.

The report by the FBI and Department of Homeland Security also warned that White supremacist terrorism was growing, and would soon by a major threat. As we’ve seen a week ago in Charlottesville, this prediction is all too correct.

Cartoon – Thatcher and Von Hayek as Monstrous Idols

July 3, 2017

Welcome to the latest instalment in my series of cartoons attacking the Tories, the right-wing press, and the ideologues and economists responsible for today’s misery and exploitation.

Two of the cartoons I’ve previously posted up have shown Maggie Thatcher and various other Tories as malign pagan idols, and this is another portrayal of her in the same vein. The inspiration for it was a photograph of a place in Turkey where the statues of ancient gods from Greece, Rome and perhaps elsewhere from that country’s long history emerge from the hillside.

In this picture, the deities of the ancient Graeco-Roman world have been replaced by Maggie Thatcher on the left, and von Hayek on the right. Von Hayek was one of the founders of the Libertarian free market economics that Thatcher embraced as her official policy. He was another bitter opponent of Socialism, which he attacked in his book, The Road to Serfdom. He served the Austrian government in the 1920s formulating an anti-Socialist economic policy based on classical Liberalism. After embracing the free market economists of Von Mises and others in the 1920s, he fled to Britain in 1931, where he taught at the LSE. He wasn’t quite the worst of the leaders of the New Right free market economists, as he still believed in some minimal kind of welfare state. But he was highly influential in the Libertarian attacks on state intervention and the welfare state.

And Thatcher was a big fan. The Financial Times over a decade ago carried an article on him, which attempted to argue that some of his ideas can still be embraced by those on the Left. For example, he stressed the importance of central institutions for a country’s political and economic life. These were the fundamental parts of its political constitution. In Britain’s case, these would include the monarchy and parliament. That both of these are of major importance to the British constitution is unquestionable, but I don’t think you need to be any kind of Libertarian to recognise this. And of these two institutions, the monarchy isn’t indispensable to orderly government by any means. It’s extremely popular, and there is a very good argument for retaining a head of state, who is above politics. But at the same time, there’s also a sizable minority of people in Britain, who would prefer a republic as a far more democratic, and less expensive alternative.

As for parliament, constitutional theorists have also pointed out the importance of middle level associations, such as professional associations, trade unions, employers’ organisations and so on to act as checks on the centralisation of political power and defend the rights and liberties of the rest of the population.

Standing between them, if you can make it out, is a statue of a demon dating from Celtic Gaul, from a photograph of a sculpture in the Musee Nationale in Paris. The ancient Celts were head hunters, keeping and displaying the heads of their victims after death. This demon appeared to have been part of a temple or shrine displaying severed heads taken in battle. The monster has two human heads beneath its two front paws, and the space between the creature’s legs held circular depressions. These appear to have been the places were real human heads were placed for veneration or display.

Again, I thought this creature was a very fitting metaphor for Thatcher and von Hayek. Their economic policies have proven to be a dreadful failure. Rather than bringing prosperity and freedom, they have only brought poverty, misery and death. As I’ve mentioned over and again before, there are a hundred people forced to use food banks to keep themselves from starving. There are 7 million more people, living in ‘food insecure’ household. In 2015, 30,000 people were killed by austerity.

And instead of peace and security, we live in an age of seemingly endless war, as our government joins the Americans in military campaigns in the Middle East. These are supposedly against Islamist terror and brutal despotisms, but the reality is that it’s just more western imperialism with a very thin humanitarian guise.

At home, the government and the press are whipping up hysteria and hatred against immigrants, including refugees fleeing from the very wars and dictators the West has begun and installed in power around the world. Muslims are particularly singled out because of atrocities committed by Salafist terrorists, despite the fact that time and again the majority of British Muslims have shown they don’t support such outrages. The real responsibility for these terror attack does not lie with ordinary British Muslims. It lies with our government, who used radical Islamist groups as soldiers in the proxy war against Communism, the Soviet Union and secular, Arab nationalist governments in the Middle East, and the Saudis, who are backing them to export their brutally intolerant brand of Islam. These Islamist groups have killed far more Muslims, as they attempt to carve out their wretched caliphate, in attacks and massacres across the Dar al-Islam than other religious groups.

And whatever the Libertarians have said about shrinking the state to expand the sphere of personal liberty, in practice nearly four decades of Thatcherite regimes, including Blair’s New Labour, have done the exact opposite. The power of the security services to intrude and monitor our private communications has been ruthlessly expanded under the pretext of keeping us safe from terror. There’s a real danger of Britain becoming a surveillance state, exactly like 1984. And Blair’s New Labour and the Tory-Lib Dem coalition under Cameron and Clegg passed legislation providing for secret courts. These are Kafkaesque courts, where a man or woman can be tried in secret, with critical evidence against him or her and his/her lawyer and even the identity of the person accusing them withheld, if it is considered necessary for reasons of national security. Which was exactly like the travesties of justice in Nazi Germany and Stalin’s Russia.

But Thatcher and von Hayek still remain idols on the right. The Daily Mail, Scum and other right-wing rags fly into paroxysms of rage if anyone dares to insult her memory, or point out that the terrible state of the country today, with a deliberately failing health service, mass poverty, poor and exploitative public services and utility industries, and the erosion of civil liberties are ultimately all the products of her policies and ideas.

And so Thatcher and von Hayek stand, like Ozymandias, on a desolate hillside, surveying the ruins they have created. While their followers kill and maim, offering terrible human sacrifices to them and their failed doctrines.

It’s long past time they were swept away, and replaced by a decent government, that would renationalise the NHS, nationalise the railway and parts of the electricity infrastructure, prevent the privatisation of schools, and reverse the benefit cuts and sanctions that are killing tens of thousands and forcing millions into poverty.

It’s about time May was forced out, along with the rest of the Tories, and replaced with Jeremy Corbyn and a Labour administration.

More Tory Lies as May Claims that ‘Austerity Is Dead’

June 15, 2017

On Tuesday Mike put up a post commenting on May’s claim that she was going to end the austerity foisted on the country by Cameron, Osborne and Nick Clegg. The trio had claimed that cutting services, privatising the NHS, and dismantling the welfare state even more ruthlessly, were what was needed to pay off the debt Labour had incurred trying to prevent the global economy collapsing due to the bankster’s recklessness. The result has been wages cuts and a massive increase in poverty as the poor, the unemployed, the sick and the disabled were thrown off benefits for the flimsiest of reasons.

Instead of blaming the bankers for the economic crisis, the Tories and their Lib Dem enablers went back to the using refrain of blaming ‘high spending’ Labour for ‘living beyond our means’.

As Mike points out in his post, cutting government investment is the one thing you don’t do during a recession. State investment stimulates the economy, which means that businesses start making money again, which generates more tax revenue.

This one of the arguments in support of welfare provision against unemployment. If unemployed workers have some kind of income during a recession, they can afford to spend some of it, thus generating more income for businesses and the state. It’s basic Keynsianism, and it works. Unlike the grotty free market economics embraced by the Tories. That has only succeeded in increasing the debt.

Now Theresa May has decided that austerity should be ended. Not because she has woken up at last to the fact that it isn’t working, and in fact is damaging the British economy. Or because she’s suddenly grown a conscience, and has realised the immense human cost of the Tories’ austerity policies in terms of tens of thousands of people, who have died in misery. Or the 7 million plus British people now living in ‘food-insecure’ households, who don’t know if they’re next meal is going to be their last.

No, it’s because the Tories lost their overall majority, thanks to a revived Labour party under Jeremy Corbyn. Mike comments

And now, further cuts are being abandoned – not because austerity’s ends have been achieved, but because the Tories have realised they will forfeit votes if they continue.

Everybody in the UK, who isn’t filthy rich, should be furious. We should be marching on Tory MPs’ homes and offices with blazing torches and pitchforks, shouting “Burn the monsters!”

The last thing we should do is tolerate this latest cynical reaction to prevailing trends. Tories represent greed and power. The only reason they abandon their pursuit of greed is when it may harm their hold on power.

Mike isn’t the only one who’s furious at this cynical U-turn and the cavalier fashion in which the Tories have shrugged off their responsibility for destroying so many lives with a brutal, callous and entirely wrong economic and social policy. He concludes

Even now, on the BBC’s Daily Politics, Tories Michael Howard and Dominic Grieve are talking about the need to live within our means. The fact is that it is entirely possible, if Tories are stopped from siphoning off our money into their bank accounts.

The end of austerity is to be welcomed.

The end of the UK’s problems will only come when the Conservatives are banished from Parliament forever.

See: http://voxpoliticalonline.com/2017/06/13/austerity-is-dead-says-may-because-it-was-never-needed-we-should-be-enraged/

In fact, the I newspaper also reported on the same day that the Tories were revising their manifesto, and dropping the more unpopular policies, such as the ‘Dementia Tax’. This was accompanied with noises about how we lived in a democratic society, and the Tories were a democratic party, so they were responding to the demands of the electorate.

There were also statements designed to reassure Tory supporters that this time, May herself would be performing better in public. They claimed that she was now a more naturalistic speaker, and that ‘the Maybot is gone.’

I find all of this very difficult to believe. The Tories are inveterate liars, who lie constantly without compunction. You only have to look through Mike’s blog for the past week or so to find very long lists of May’s promises, which she has subsequently broken. Such as her promises to put workers on the boards of companies. The campaign of her predecessor, David Cameron, was one long series of lies. He and IDS, the minister for culling the disabled, claimed that they were going to ringfence spending on the NHS, campaigned against hospital closures by Blair’s New Labour, and tried to present the Tories as now being more left-wing and friendly to the poor. He also stuck a windmill on the roof of his house, and claimed that his would be ‘the greenest government ever’.

Once in power, the NHS was being cut and privatised, hospitals closed and given over to private management companies, conditionality for welfare benefits massively increased, and any semblance of environmentalism thrown out completely. The windmill went from his roof, and in came the privatisation of Britain’s forests, the repeal of various pieces of legislation protecting the environment, and the go-ahead given to fracking.

The fact that Howard and Grieve were talking about ‘living within our means’ – which is Tory-speak for not spending anything on the poor and state services, like the NHS and education, means that the Tories really don’t believe it.

And yesterday Mike put up a piece reporting that Philip Hammond, the Chancellor, and Sajid Javid are calling for May’s proposed cap on energy bills to be scrapped and the party should return to its ‘free market roots’.

Mike quoted Labour’s shadow energy minister, Rebecca Long-Bailey, and concluded:

“If correct, this is potentially another stunning U-turn from a weak and wobbly Prime Minister,” said Rebecca Long-Bailey, Labour’s Shadow Secretary of State for Business, Energy and Industrial Strategy.

“One in ten households are living in fuel poverty and customers are being overcharged a whopping £2 billion every year. Theresa May unequivocally guaranteed a price cap before the general election but now it appears she is preparing to row back on that promise. It now looks like this price cap was simply an election gimmick and that the Conservatives were never serious about taking action to keep energy bills down.

“Britain needs a serious and long term approach in order to bring energy costs down, not cheap gimmicks that may simply be thrown into the bin just a week after the General Election.”

She’s right; Philip Hammond and Sajid Javid are wrong. What do YOU think the Tories will do?

http://voxpoliticalonline.com/2017/06/14/the-tory-energy-price-cap-pledge-was-a-lie-or-at-least-philip-hammond-wants-to-make-it-one/

I think it’s blatantly obvious what the Tories will do. They’re lying now about ending austerity, but perfectly serious about abandoning the energy bill cap. If they get in again, May will reintroduce all the policies she claimed she abandoned, and the Tories will once again chant the old Thatcherite chorus of TINA – There Is No Alternative.

There is. It’s Jeremy Corbyn. He’s this country’s hope to stop further NHS privatisation, welfare cuts, starvation and deaths.

Article on the Guardian’s Bias against Jeremy Corbyn

March 22, 2017

Michelle, one of the many great commenters on this blog, sent me the link to this article by Novara Media’s Alex Nunns, ‘How the Guardian Changed Tack on Corbyn, Despite Its Readers’. This describes the way the Guardian initially supported Corbyn, but only when it thought that he was an outside candidate, who was unlikely to win the Labour leadership election. When Corbyn did indeed win, the Guardian’s furious reaction was to publish a series of articles attacking the Labour leader for being too left-wing. The Groaniad’s companion paper, the Observer, also reacted with the same outrage. And despite the Groan’s claim to be an impartial observer in the Labour leadership contest, it ran articles strongly backing the contenders Andy Burnham, Liz Kendall and Yvette Cooper.

The piece also discusses some of the individual hacks at the Groan attacking and sniping at Corbyn. These are Polly Toynbee, Michael White, Andrew Rawnsley and Jonathan Jones. It points out that Rawnsley had a personal interest in making sure the Blairites stayed in power: he had written several books on them, and they had given him privileged access and information. By challenging them, Corbyn was threatening to cut of his access to people at the centre of power. One of the other columnists, Patrick Wintour, may have had an even more personal reason for attacking Corbyn. Many on the Left believe that ‘Wintour’ is the nom de plume of Peter Mandelson. As for Jones, his article was almost bug-eyed with hysteria. He described how he joined the Communist party when he was a student, but abandoned it when he saw the reality of life in the Soviet Union for himself, noting that the Soviet regime killed 6m under Stalin. Corbyn, he decided, represented this kind of totalitarian government. He then started trying to defend the free market by saying that ‘markets are human’. Well, so are many things. But they are also subject to manipulation, and do not necessarily bring wealth to the majority of the population. Thatcherite trickle-down economics don’t work in practice. As for Corbyn himself, this is the standard Red scare the Right has been running against Socialism and the Left since the days of the Zionviev Letter. They ran it again under Thatcher against Tony Benn, Ken Livingstone and about 30 other Left Labour MPs in the 1980s. I’ve seen absolutely no evidence that Corbyn is a Marxist, or that he wanted absolute nationalisation. But it just shows how far the Labour right has been infected with the Neoliberal virus.

Jones is also guilty of a bit of holocaust minimalisation in his article as well. The Soviet Union under Stalin didn’t kill 6m Soviet citizens. It murdered about 30 million, at least 8m in Ukraine alone during the manufactured famine in the collectivisation of agriculture.

The article notes that Guardian is convinced Labour needs to keep to the centre-ground, but doesn’t understand how this has changed and will change in the future. It also acknowledges that there are many left-wing columnists on the Groan. However, their presence ironically supports the dominant bias against Corbyn, as it allows the newspaper to present their opinions as views, which have been heard and then discarded. It makes the point that the newspaper has absolutely no understanding why people support Corbyn, including 78 per cent of its own readers, nor the way the media itself shapes public opinion. Nunns states that the best comment on this came from Frankie Boyle, who observed

“It’s worth remembering that in the press, public opinion is often used interchangeably with media opinion, as if the public was somehow much the same as a group of radically right wing billionaire sociopaths.”

http://novaramedia.com/2017/01/08/how-the-guardian-changed-tack-on-corbyn-despite-its-readers/

The Grim Implications for Britain of Chelsea Clinton and her Book on Global Health

February 27, 2017

In this short video from The Jimmy Dore Show, the American comedian and his co-hosts, Stef Zamora and Rob Placone, rip into the New York Times for publishing a bit of non-news from Chelsea Clinton. She’s the daughter of Hillary and Bill Clinton, and the NYT saw fit to publish on its pages a tweet from her, saying that the she read Fahrenheit 451 in 7th grade, and it still makes her feel uncomfortable. It’s widely considered that Chelsea Clinton is being groomed to follow her parents into politics. That’s the message that Dore, Placone and Zamora got from this tweet. They feel it’s a puff piece for her. And so did several of the NY Times’ readers. One Mr Flugennock tweeted back that the newspaper should come off it, as ‘we aren’t going to vote for her’. Accompanying this was a photo of Clinton junior with the caption, ‘Mommy, your clothes fit me now.’

Indeed they do. Both Chelsea and her vile parents seem to be highly critical of state medicine. During her election campaign last year, Killary declared that single-payer healthcare was ‘utopian’. As Dore and the other left-wing American newscaster repeatedly pointed out, it’s a utopian institution that every other country in the developed world has, except America. And Chelsea seems to think the same thing. I distinctly remember her saying something sneering and dismissive about socialised medicine or single-payer health care a few years ago.

Dore, Placone and Zamora joke about the essentially vapid content of the tweet. Zamora commented that she also read Green Eggs and Ham by Dr Zeuss in the 1st Grade, and it still makes her feel uncomfortable about green eggs. Rather more seriously, Dore remarks on her comments seem to suggest that she expected to feel more comfortable with age about the book’s dark subject matter. Fahrenheit 451 is one of SF and Fantasy author Ray Bradbury’s classic novels, alongside The Martian Chronicles and The Illustrated Man. The book takes its name from the temperature at which paper burns. It’s a dystopian book, set in a future where a despotic government has banned literature and reading. In this world, firemen are people, who start firesm not put them out, consigning books and learning to the flames. Of course it’s a disturbing book. It follows the real life burning of subversive literature by oppressive regimes and movements, like Nazi Germany. It’s why Dore also makes a heavily ironic joke about not getting used to the Holocaust either.

The NY Time’s also mentions that Chelsea Clinton has also co-authored a book herself. This is Governing Global Health, an ‘unbiased’ book, which examines public-private healthcare partnerships around the world, and looks forward to them becoming increasingly important in tackling world health. Dore, Zamora and Placone miss the serious undertones for this, joking instead about its supposed connection to Clinton’s comments about Bradbury’s masterpiece. This is supposed to have disturbed her so much, she wrote a book of her own.

But Clinton fille’s authorship of this tome has serious and very ominous overtones for state healthcare elsewhere in the world, and most immediately in Britain. Public-Private Partnerships are basically the Blairite ‘Third Way’, which they in turn inherited from the Tories’ foul Peter Lilley. This capering bigot was upset that private enterprise was locked out of the NHS, and so created the Private Finance Initiative. This is where the state bales out and subsidies private firms for building and managing NHS hospitals. It’s more expensive, and so the hospitals built under it are fewer and smaller. Even worse, perfectly efficient and excellent state hospitals have had to be closed, so that Blair and the Tories could provide more lucrative work for their friends in private healthcare.

Blair took over the Clinton’s electoral strategy and their corporatist, anti-working class ideology and injected it into the Labour party. Bill Clinton’s campaign was based on rejecting the Democrats traditional base in the working class, and abandoning what little welfare provision there was, in order to win votes from Reaganite Republicans. And the policy’s continued under Obama and Shrillary. Chuck Schumer, the leader of the Democrats, famously stated last year that he wasn’t concerned if they lost blue collar voters, as for every one they lost, they’d pick up two or three suburban Republicans. This is the same attitude that infects Blairite Labour. Blair, Mandelson, Broon and Campbell targeted affluent swing voters in marginal constituencies, sacrificing the interests of the working class in order to appeal to middle class Thatcherites. The policy didn’t work, and is creating massive poverty. But the corporatist elite love it, and so the Clintonites in America and Blairites over here are still pushing it.

And just as Blair took over the Clintonite free market ideology, the same corporate interests that infest American politics also came over her to win contracts in healthcare, the prison system and other parts of the state infrastructure. Companies like the notorious health insurance fraudster, Unum. The American private healthcare companies realised that the market in America was in serious trouble, due to rising costs. There was an excellent article in Counterpunch a month or so ago, which reported that in some areas it almost broke down before being rescued by Obama’s affordable care act. With the market in America glutted and sinking, they’ve come over here to win contracts from our NHS. And our politicos have been stupid and malignant enough to give them to them.

I think Dore and co. are right. Chelsea Clinton is being groomed to succeed her parents. And as a believer in private healthcare, she does want to push the privatisation of our NHS for the profit of her country’s private healthcare firms. She has to be stopped. If she enters politics to push her vile agenda, it’ll be bad for America and terrible for Britain and our NHS. Keep her – and them – out of politics and out of Britain.

Reichwing Watch: How the Billionaires Brainwashed America

November 16, 2016

This is another excellent video from Reichwing Watch. Entitled Peasants for Plutocracy: How the Billionaires Brainwashed America, it’s about how wealthy industrialists, like the multi-billionaire Koch brothers, created modern Libertarianism and a stream of fake grassroots ‘astroturf’ organisations, in order to attack and roll back Roosevelt’s New Deal and the limited welfare state it introduced. And one of the many fake populist organisations the Koch brothers have set up is the Tea Party movement, despite the Kochs publicly distancing themselves from it.

The documentary begins with footage from an old black and white American Cold War propaganda movie, showing earnest young people from the middle decades of the last century discussing the nature of capitalism. It then moves on to Noam Chomsky’s own, very different perspective on an economy founded on private enterprise. Chomsky states that there has never been a purely capitalist economy. Were one to be established, it would very soon collapse, and so what we have now is state capitalism, with the state playing a very large role in keeping capitalism viable. He states that the alternative to this system is the one believed in by 19th century workers, in that the people, who worked in the mills should own the mills. He also states that they also believed that wage labour was little different from slavery, except in that it was temporary. This belief was so widespread that it was even accepted by the Republican party. The alternative to capitalism is genuinely democratic self-management. This conflicts with the existing power structure, which therefore does everything it can to make it seem unthinkable.

Libertarianism was founded in America in 1946/7 by an executive from the Chamber of Commerce in the form of the Foundation for Economic Education. This was basically a gigantic business lobby, financed by the heads of Fortune 500 companies, who also sat on its board. It’s goal was to destroy Roosevelt’s New Deal. Vice-President Wallace in an op-ed column in the New York Times stated that while its members posed as super-patriots, they wanted to roll back freedom and capture both state and economic power. The video also quotes Milton Friedman, the great advocate of Monetarism and free market economics, on capitalism as the system which offers the worst service at the highest possible profit. To be a good businessman, you have to be as mean and rotten as you can. And this view of capitalism goes back to Adam Smith. There is a clip of Mark Ames, the author of Going Postal, answering a question on why the media is so incurious about the true origins of Libertarianism. He states that they aren’t curious for the same reason the American media didn’t inquire into the true nature of the non-existent WMDs. It shows just how much propaganda and corruption there is in the American media.

The documentary then moves on to the Tea Party, the radical anti-tax movement, whose members deliberately hark back to the Boston Tea Party to the point of dressing up in 18th century costume. This section begins with clips of Fox News praising the Tea Party. This is then followed by Noam Chomsky on how people dread filling out their annual tax returns because they’ve been taught to see taxation as the state stealing their money. This is true in dictatorships. But in true democracy, it should be viewed differently, as the people at last being able to put into practice the plan in which everyone was involved in formulating. However, this frightens big business more than social security as it involves a functioning democracy. As a result, there is a concerted, and very successful campaign, to get people to fear big government.

The idea of the Tea Party was first aired by the CNBC reporter Rick Santilli in an on-air rant. Most of the Party’s members are normal, middle class Americans with little personal involvement in political campaigning. It is also officially a bi-partisan movement against government waste. But the real nature of the Tea Party was shown in the 2010 Tea Party Declaration of Independence, which stated that the Party’s aims were small government and a free market economy. In fact, the movement was effectively founded by the Koch brothers, Charles and David Koch. Back in the 1980s, David Koch was the Libertarian Party’s vice-president. The Libertarian Party’s 1980 platform stated that they intended to abolish just about every regulatory body and the welfare system. They intended to abolish the Department of Energy, Environmental Protection Agency, Food and Drug Authority, Occupational Health and Safety Administration, Federal Communications Commission, Federal Trade Commission, National Labor Relations Board, the FBI, CIA, Federal Reserve, Social Security, Welfare, the public (state) schools, and taxation. They abandoned this tactic, however, after pouring $2 million of their money into it, only to get one per cent of the vote. So in 1984 they founded the first of their wretched astroturf organisation, Citizens for a Sound Economy. The name was meant to make it appear to be a grassroots movement. However, their 1998 financial statement shows that it was funded entirely by wealthy businessmen like the Kochs. In 2004 the CSE split into two – Freedom Works, and Americans for Prosperity. The AFP holds an annual convention in Arlington, Virginia, attended by some of its 800,000 members. It was the AFP and the Kochs who were the real organising force behind the Tea Party. Within hours of Santilli’s rant, he had been given a list of 1/2 million names by the Kochs. Although the Koch’s have publicly distanced themselves from the Tea Party, the clip for this section of the documentary shows numerous delegates at the convention standing up to declare how they had organised Tea Parties in their states. But it isn’t only the AFP that does this. Freedom Works, which has nothing to do with the Kochs, also funds and organises the Tea Parties.

Mark Crispin Miller, an expert on propaganda, analysing these astroturf organisations makes the point that for propaganda to be effective, it must not seem like propaganda. It must seem to come either from a respected, neutral source, or from the people themselves. Hence the creation of these fake astroturf organisations.

After its foundation in the late 1940s, modern Libertarianism was forged in the late 1960s and ’70s by Charles Koch and Murray Rothbard. Libertarianism had previously been the ideology of the John Birch Society, a group harking back to the 19th century. Koch and Rothbard married this economic extreme liberalism, with the political liberalism of the hippy counterculture. They realised that the hippies hated the state, objecting to the police, drug laws, CIA and the Vietnam war. Ayn Rand, who is now credited as one of the great founders of Libertarianism for her extreme capitalist beliefs, despised them. The film has a photo of her, next to a long quote in which she describes Libertarianism as a mixture of capitalism and anarchism ‘worse than anything the New Left has proposed. It’s a mockery of philosophy and ideology. They sling slogans and try to ride on two different bandwagons… I could deal with a Marxist with a greater chance of reaching some kind of understanding, and with much greater respect.’

The documentary also goes on to show the very selective attitude towards drugs and democracy held by the two best-known American Libertarian politicos, Ron and Rand Paul. Despite the Libertarians’ supposedly pro-marijuana stance, the Pauls aren’t actually in favour of legalising it or any other drugs. They’re just in favour of devolving the authority to ban it to the individual states. If the federal government sends you to prison for weed, that, to them, is despotism. If its the individual state, it’s liberty.

And there’s a very telling place piece of footage where Ron Paul talks calmly about what a threat democracy is. He states clearly that democracy is dangerous, because it means mob rule, and privileges the majority over the minority. At this point the video breaks the conversation to show a caption pointing out that the Constitution was framed by a small group of wealthy plutocrats, not ‘we the people’. This is then followed by an American government film showing a sliding scale for societies showing their positions between the poles of democracy to despotism, which is equated with minority rule. The video shows another political scientist explaining that government and elites have always feared democracy, because when the people make their voices heard, they make the wrong decisions. Hence they are keen to create what Walter Lipmann in the 1920s called ‘manufacturing consent’. Real decisions are made by the elites. The people themselves are only allowed to participate as consumers. They are granted methods, which allow them to ratify the decisions of their masters, but denied the ability to inform themselves, organise and act for themselves.

While Libertarianism is far more popular in America than it is over here, this is another video that’s very relevant to British politics. There are Libertarians over here, who’ve adopted the extreme free-market views of von Hayek and his fellows. One of the Torygraph columnists was particularly vocal in his support for their doctrines. Modern Tory ideology has also taken over much from them. Margaret Thatcher was chiefly backed by the Libertarians in the Tory party, such as the National Association For Freedom, which understandably changed its name to the Freedom Foundation. The illegal rave culture of the late 1980s and 1990s, for example, operated out of part of Tory Central Office, just as Maggie Thatcher and John Major were trying to ban it and criminalise ‘music with a repetitive beat’. Virginian Bottomley appeared in the Mail on Sunday back in the early 1990s raving about how wonderful it would be to replace the police force with private security firms, hired by neighbourhoods themselves. That’s another Libertarian policy. It comes straight from Murray Rothbard. Rothbard also wanted to privatise the courts, arguing that justice would still operate, as communities would voluntarily submit to the fairest court as an impartial and non-coercive way of maintain the peace and keeping down crime. The speaker in this part of the video describes Koch and Rothbard as ‘cretins’. Of course, it’s a colossally stupid idea, which not even the Tory party wanted to back. Mind you, that’s probably because they’re all in favour of authoritarianism and state power when its wielded by the elite.

I’ve no doubt most of the Libertarians in this country also believe that they’re participating in some kind of grassroots, countercultural movement, unaware that this is all about the corporate elite trying to seize more power for themselves, undermine genuine democracy, and keep the masses poor, denied welfare support, state education, and, in Britain, destroying the NHS, the system of state healthcare that has kept this country healthy for nearly 70 years.

Libertarians do see themselves as anarchists, though anarcho-individualists, rather than collectivists like the anarcho-syndicalists or Communists. They aren’t. This is purely about expanding corporate power at the expense of the state and the ordinary citizens it protects and who it is supposed to represent and legislate for. And it in practice it is just as brutal as the authoritarianism it claims to oppose. In the 1980s the Freedom Association became notorious on the left because of its support for the death squads in Central America, also supported by that other Libertarian hero, Ronald Reagan.

Libertarianism is a brutal lie. It represents freedom only for the rich. For the rest of us, it means precisely the opposite.

Owen Jones Meets Critic of Neoliberal Economics, Ha-Joon Chang

August 16, 2016

Ha-Joon Chang Pic

In his series of videos on YouTube, Owen Jones, the author of Chavs: The Demonisation of the Working Class, goes to meet with various public figures. These include Jeremy Corbyn, Peter Hitchens and so on. In this video he talks to Ha-Joon Chang, a South Korean economics professor at Cambridge University. Chang’s interesting as he’s a critic of Neoliberalism, the free market economics that has been this country’s political dogma since the Margaret Thatcher. I put up a post a little while ago on Chang’s 23 Things They Don’t Tell You About Capitalism.

The conversation begins by Chang attacking the government’s decision to cut public spending in order to shrink the debt. He says that public debt represents public demand, and if you shrink it, the economy will also shrink, and you’ll still be left with a massive debt. This is what has happened to Greece. It’s far better actually to put more money into the economy. When Jones asked him if Osborne was stupid for pursuing this policy, Chang states very clearly that Osborne did it for other reasons – to undermine and destroy the welfare state, and make the country more like America.

The two then discuss whether it really is a case of capitalism for the poor, and Socialism for the rich. The welfare net for the poor is being destroyed, but there are massive subsidies for the rich. Chang makes the point that big business demands these subsidies, but when the issue of taxation is raised, that’s an entirely voluntary matter, and they’ll start an offshore bank account to avoid paying it. He also discounts the Libertarian attitude that ‘taxation is theft’. He makes the point that wealth is socially created. The attitude that taxation is theft may have made sense in the 16th century, when most people were independent farmers, but it doesn’t apply today, when you need a whole ranges of services to create wealth. They also remark on the double standards about the issue of inequality and greed. Libertarians and neoliberals like greed, because it supposedly stimulates the economy. But as soon the poor start resenting the excessive wealth of the rich, then they denounce them for being envious. Chang states that you can’t have inequality, as it means the poor and rich aren’t living in the same world. They might inhabit the same geographical area, but it’s like one was living in the 22nd Century and the other in the 18th and 19th.

Jones makes the point that whenever anybody discusses nationalisation, they automatically go back to the 1970s and the inefficiency of the services then. Chang states that nationalisation isn’t necessarily the answer, as if something is properly regulated you can have the benefits of nationalisation without it. However, there are examples where private enterprise, or at least unregulated private enterprise doesn’t work. He compares the British and Japanese rail networks. The British rail network now consumes massive subsidies, and is the most expensive in Europe. It doesn’t work, because you can’t have a competitive system on the same piece of railway.

Jones also tackles him about the welfare state. Isn’t it true that it’s bloated, and encourages people to be lazy and feckless. Chang states that there is one aspect to that question that he does agree with. He believes the welfare state does need some reform, as it was created in the 1940s-50s. Now people are living longer, nearly 30 years after their retirement. But he says there’s little evidence that it makes people lazy, and criticises the way people have stopped talking about it as an important form of social security. He makes the point that in countries with a strong welfare state, people are much more willing to accept corporate restructuring. Such as in Sweden, for example. This is not to say they prefer it, but they are willing to accept it. In countries like America where there is little in the way of a welfare state, workers, even if not unionised, are much more resistant to change because they can lose everything.

Chang also talks about the difference between classical liberalism, democracy and neoliberalism. Neoliberalism is a return to the economic doctrines of the 18th and 19th century, when the only form of liberty that mattered was the liberty to own and use property how you wanted. Initially, liberals weren’t democrats, because they feared that democracy would limit the freedom of the property-owners to do as they wished. Neoliberalism is a return to this system, with a bit of democracy. However, the political situation is altered so that democracy does not interfere with the liberties of the propertied classes. For example, they’re in favour of an independent central banks, as then it doesn’t have to be accountable to government over interest rates and the effect that may have on society. They’re also in favour of independent regulatory authorities, as that won’t allow government to interfere with private industry either.

Lastly, Jones asks him if he believes that the system will ever change. Chang makes the point that the past several decades have seen changes that people did not believe would happen. He talks about how Maggie Thatcher 25 years ago said that there would never been Black majority rule in South Africa. If you go back fifty years, then the leaders of the African independence movements were all hunted men in British prisons. It may not happen for decades, but eventually change will come. He quotes a proverb, which says that you must be a pessimist in your head, and an optimist in your heart. Above all, you have to keep fighting, as they won’t give you anything.

Here’s the video:

Ha-Joon Chang on the Failings of Free Market Capitalism

March 30, 2016

Chang Capitalism Book pic

Ha-Joon Chang is a Korean-born Cambridge economist, who has popped up here and there because of his criticisms of Neo-Liberal free market economics. Mike over at Vox Political, for example, has reblogged a meme quoting him on how trickle down economics don’t work, and are merely there to transfer wealth upwards to the rich in the form of tax cuts. He’s also the author of a popular book on economics and the failings of the free market, 23 Things They Don’t Tell You About Capitalism (London: Penguin 2010).

Chang makes it clear that his book is not an attack on capitalism per se. He states in the Introduction

This book is not an anti-capitalist manifesto. Being critical of free-market ideology is not the same as being against capitalism. Despite its problems and limitations, I believe that capitalism is still the best economic system that humanity has invented. My criticism is of a particular version of capitalism that has dominated the world in the last three decades, that is, free-market capitalism. This is not the only way to run capitalism, and certainly not the best, as the record of the last three decades shows. The book shows that there are ways in which capitalism should, and can, be made better.

He is, however, very clear on the devastation that has been wrought across the globe by the doctrine of the unrestrained free market.

The result of these policies has been the polar opposite of what was promised. Forget for a moment the financial meltdown, which will scar the world for decades to come. Prior to that, and unbeknown to most people, free-market ideologies had resulted in slower growth, rising inequality and heightened instability in most countries. In many rich countries, these problems were masked by huge credit expansion; thus the fact that US wages had remained stagnant and working hours increased since the 1970s was conveniently fogged over by the head brew of credit-fuelled consumer boom. the problems were bad enough in the rich countries, but they were even more serious for the developing world. Living standards in Sub-Saharan Africa have stagnated for the last three decades, while Latin America has seen its per capita growth rate fall by two-thirds during the period. There were some developing countries that grew fast (although with rapidly rising inequality) during this period, such as China and India, but these are precisely the countries that, while partially liberalizing, have refused to introduce full-blown free-market policies.

Thus, what we were told by the free-marketeers – or, as they are often called, neo-liberal economists, are at best only partially true and at worst plain wrong. As I will show throughout this book, the ‘truths’ peddled by free-market ideologues are based on lazy assumptions and blinkered visions, if not necessarily self-serving notions. My aim in this book is to tell you some essential truths about capitalism that the free-marketeers won’t.

Which is more than enough to give the late Mrs Thatcher a fit of the vapours.

Ha-Joon Chang Pic

Chang states that his goal is to empower people to make decisions and have opinions on these issues, whereas they might otherwise leave them to the experts on the grounds that they don’t have enough technical expertise, and so become active citizens demanding the right course of action from decision-makers.

The book itself has a rather eccentric organisation. Instead of chapters, there are ‘Things’, meaning different topics, so the contents include the following

Thing 1 There is no such thing as the free market.

Thing 2 Companies should not be run in the interest of their owners.

Thing 3 Most people in rich countries are paid more than they should be.

Thing 4 The washing machine has changed the world more than the internet has.

Thing 5 Assume the worst about people and you will get the worst.

Thing 6 Greater macroeconomic stability has not made the world any more stable.

Thing 7 Free-market policies rarely make poor countries rich.

Thing 8 Capital has a nationality.

Thing 9 We do not live in a post-industrial age.

Thing 10. the US does not have the highest living standard in the world.

Thing 11 Africa is not destined for underdevelopment.

Thing 12. Governments can pick winners.

Thing 13 Making rich people richer doesn’t make the rest of us richer.

Thing 14 Us managers are over-priced.

Thing 15 People in poor countries are more entrepreneurial than people in rich countries.

Thing 16 We are not smart enough to leave things to the market.

Thing 17 More education in itself is not going to make a country richer

Thing 18 What is good for General Motors is not necessarily good for the United States.

Thing 19 Despite the fall of Communism, we are still living in planned economies.

Thing 20 Equality of opportunity may not be fair.

Thing 21 Big government makes people more open to change.

Thing 22 Financial markets need to become less, not more, efficient.

Thing 23 Good economic policy does not require good economists.

Conclusion: How to rebuild the world economy.

He also makes seven suggestions how you can read the book, to answer certain queries, reading selected chapters to answer such questions as what capitalism is, or if you think politics is a waste of time or if you think the world is an unfair place, but there isn’t much you can do about it.

And while the book isn’t an attack on capitalism itself, some of the solutions to its problems do involve an element of Socialism or worker participation. For example, in the ‘Thing’ about why companies should not be run in the interests of the people who own them, Chang points out that the ownership of a country by shareholders means in practice that these have less interest than traditional owner managers in it being profitable or viable, as they can always take their shares out and put them somewhere else. As a result, the countries which have some of the most stable, and hence, most profitable companies, are those which have encouraged long-term investment or encouraged their workers to have a stake in them. Such as France, where several companies are part-owned by the state, or Germany and Austria, which have a degree of worker’s control through works’ councils.

It’s a fascinating and very necessary critique of the free-market capitalism beloved by the Blairites in Labour, and the Tories. Economics is notoriously the ‘dismal science’, but this is well and engagingly written for the ordinary reader, and I hope it encourages more people to criticise and bring down this deeply flawed and iniquitous system.