As the Global Hegemon Collapses, Can Private Property Be Far Behind?

[PHOTO: Al Drago/Getty]

By Steven Miller

Tuesday’s Presidential debate showed the world how the politics of collapse are determining the election of the next President of the US. It was reminiscent of the Roman Senate when the Goths sacked Rome in 410 AD. Senators gathered in the Forum, protected by the Praetorian Guards. Suddenly one Senator would leap up and cry, “I propose a law making sacking the city illegal.” Everyone voted and the resolution passed unanimously.

The world was watching Tuesday and was shocked at how low the politics have sunk in the US.

There are actually real issues these days — COVID, systemic economic collapse, institutional racism, rampant police murder. But instead we saw the leadership of the most powerful country in the world, the global hegemon for the last 70 years, collapsing in real time right there on television. The candidates could not have an intelligent discussion of the tremendous issues that face the country. No vision, no ideas, no dialogue, no programmatic solutions. The Democrats, of course, agree with Trump on 80% of the issues and therefore dare not make programmatic attacks. The debate proved nothing more than the old adage that when you lay down in the gutter, you do not wind up smelling like a rose.

Meanwhile the organs of the State are fighting themselves. This is characteristic of an objectively revolutionary situation. The FBI openly counters and reports to the American people to disprove the President. The President constantly usurps authority he does not legally have, including creating his own private police force aided and abetted by the most privatized elements of ICE and Homeland Security. The CDC, the Post Office and the Justice Department, every organ of the State, are politicized and coerced into being part of Trump’s election campaign.

The Senate and the House are in stalemate and cannot figure out how to help the American people now that 50 million are unemployed, have lost their healthcare, and are facing a looming Rent Apocalypse. Paralysis is another characteristic of an objectively revolutionary situation. The Republicans are risking losing the Senate as they try to jam through a new Supreme Court Justice before the election. People are beginning to see that these “honored institutions of democracy” are far from neutral.

Twenty-six million people hit the streets in righteous wrath over the murders of George Floyd, Breonna Taylor and so many others. Their demands crystalized around defunding or abolishing the police, which acts like an occupying army in a country that treats non-violent civilians with the tactics of the War of Terror, while white supremist vigilante gangs stalk them in the dark.

The institutions of the US State were forged in slavery and infused with structural racism. One of these, the Electoral College, was established to prevent the popular vote from determining the President. It will begin to tear itself apart after election day on November 3. No one knows whether or how the institutions of government will hold up in the coming months before a President is inaugurated on January 20… or after.

A major indicator of how things are going will be the actions of the corporate media industrial complex, perhaps the most sophisticated thought-control apparatus ever devised. These corporations have given Trump billions of dollars of free advertising, and give credence to his slightest whim. They now work in tandem with social media, which openly operates with malign intent to confuse the situation even more. It was therefore significant that one day before the debate, the New York Times, released information about Trump’s taxes that reveal he doesn’t pay any.

Property Depreciation as a Legal Invention

Now the political exposures are beginning to enter the sacred zone of private property, an issue the capitalist class prefers to keep in the dark. The very State, legal system and tax code that is coming under public scrutiny is designed to give uber privileges to private property. This is what the Trump crime family exploits, as does every corporation in America.

Tax laws allow tangible private property, used for business, to be depreciated. Personal property, like a home, cannot be depreciated, but a landlord can depreciate rental property because the theory is that tangible property is “used-up” over time, so the property owner can “depreciate” it.

But depreciation is simply a legal figment. How do we know? When an owner sells business property, the depreciation starts all over again from the top! And anyone who is forced to rent knows quite well that the value of property appreciates and gets more expensive over time. It doesn’t depreciate at all.

Then the property owner gets to deduct the cost of maintaining the property, so s/he gets a double dip. And since depreciation is a business expense, it is a deduction from business income. The law allows the owner to get cash generated in the current year without paying any tax on an amount of income equal to the amount of depreciation.

The legal scam then is elaborated. Trump (and every corporation) borrows money to purchase property, like a golf course, say for $100 million. They take the depreciation of course. Then they get an appraisal of the property that claims the property is actually worth $300 million. The appraisal, say, is three times what it should be, but the inflated appraisal can be used to provide collateral for additional loans.

In other words, the happy capitalist buys property with other peoples’ money, gets paid in tax breaks, ie public money, to depreciate it, and then falsely appreciates the value, to borrow more money to buy more property, etc etc. What a deal!

Inanimate private property in itself has these rights, not people. They are not the rights of the owner, because if the owner sells the property, they no longer get the privilege of depreciating it. So private property is a legal entity that has far more rights than human beings, just because the law says so. OMG – if ordinary citizens can challenge a system of legal institutions that are infused with systemic racism, how far can they go? That is part of the transformative power and the danger to the capitalists of this moment.

Alone in the world in its COVID response, the US put private property in control of the emergency. America is learning the hard way that there are issues that absolutely need a federal government to take control, propose a single strategy and coordinate resources. This is something that private property can never do.

Extractive Capitalism

Since the capitalist system collapsed in 2008, it has been sustained on life support by public money. US corporations, especially the financial sector, have received $25 trillion to $39 trillion in direct payments (David Sirota, Jacobin, “We've Always Had the Money for Medicare for All - We've Just Given It to Corporations Instead”, 18 June 2020). Capitalists got to onshore $23 trillion of profit two years ago. Add in direct subsidies through the military budget of $1+ trillion a year and massive billion-dollar subsidies to the petroleum and pharmaceutical industries.

Yet the economy collapsed after the advent of the virus in one week, the biggest collapse in history. Add in the actions of a criminal President and suddenly the wheels are coming off the bus. Or are they?

Is it really true that the most powerful capitalist class in history, with an unsurpassed military and three centuries of experience in maintaining its rule both legally and illegally, is so inept that they can do nothing about an unpredictable leader that destabilizes everything?

The government is clearly the last profit center left in capitalism. Just as with depreciation, the actions of government alone can create the legalities that create markets for private property. Hence the battles within the government and the State apparatus. The various capitalist gangs do not have real strategic differences, but they certainly differ tactically on whether to maintain bourgeois democracy to achieve their goals.

Corporations merged with the government long ago; now they are rapidly merging with the State, as the provision of police services are increasingly under the control corporations. Since 2003, the Department of Homeland Security has been spending billions a year to affect this change. Private property is unified in the vision of disaster capitalism: take advantage of the situation to re-organize society to augment private profits. They are not moving slowly. They are re-creating the economy as an extractive industry.

Trump’s Secretary of the Treasury, Steve Mnuchin, for example, was instrumental in creating the “rentership society”. After 2008, financiers understood that there could never be broad home ownership again in the United States. So they evicted millions from their homes, while graciously letting some stay as long as they paid rent, a sum that was dramatically higher than what they paid before. These policies drove millions out of the communities they had lived in for decades even as large amounts of new housing was built. But that housing was built to be empty, to be speculative property that supported hedge funds and not people. That is an extractive industry that sucks wealth out of communities, just as petroleum corporations extract wealth out of the ground.

US capitalism has big plans to transform other branches of the economy into an extractive machine. Constant privatization of every aspect of life is the method. Serious observers of England’s Brexit insanity recognize that when the dust settles, US-style privatized health care intends to invade and try to take over. Trump’s new Supreme Court nominee will likely vote to end Obamacare, and eliminate health care for another 25 million people or so. What can possibly arise to fill the void? What can allow US corporations to further invade public European health care systems?

Maybe it’s the new Apple watch?

Apple released the latest device during all this turmoil, and proudly stated that it was after long discussions with their “partners” in the insurance industry. Why? Could it be because the insurance industry is the main organizer of health care in the US? What is the connection here?

Haim Israel is a strategic director of Bank of America and head of the report, “The World After Covid Primer.” (www.bofaml.com/.../the_world_after_covid.pdf)

The report notes that 1/3 of the world’s data resides in the healthcare industry. It notes that value of data to the economy will increase from 30l billion euros in 2018 to 829 billion euros in 2025.

“We found that while the data generated is rising exponentially, just 1% of it is analysed or monetised effectively. The post Covid era could benefit technology companies who can analyse and monetise such data, but adoption is likely to vary by region owing to privacy concerns and regulations.”

And..  

“Big Government: a new social contract -- Growing surveillance, inequality and the current inadequacy of some healthcare systems versus others highlighted by the current crisis will act as a catalyst for change in politics, furthering populism trends and increasing the risk of social unrest. Covid-19 has handed governments a new social mandate to protect their citizens. Governments will exert greater influence on businesses with shareholder supremacy potentially eroding in favour of stakeholders. Further, this crisis has made the technology industry useful – if not vital – for implementing government power. We think this is unlikely to reverse…”

How far can this go? Vandanta Shiva reports in her article, “The Pandemic Is a Consequence of the War Against Life” (September 21, 2020):

On March 26, 2020, at a peak of the coro­n­avirus pan­dem­ic and in the midst of the lock­down, Microsoft was grant­ed a patent by the World Intel­lec­tu­al Prop­er­ty Orga­ni­za­tion (WIPO). Patent WO 060606 declares that ​“Human Body Activ­i­ty asso­ci­at­ed with a task pro­vid­ed to a user may be used in a min­ing process of a cryp­tocur­ren­cy system….”

The ​“body activ­i­ty” that Microsoft wants to mine includes radi­a­tion emit­ted from the human body, brain activ­i­ties, body flu­id flow, blood flow, organ activ­i­ty, body move­ment such as eye move­ment, facial move­ment, and mus­cle move­ment, as well as any oth­er activ­i­ties that can be sensed and rep­re­sent­ed by images, waves, sig­nals, texts, num­bers, degrees, or any oth­er infor­ma­tion or data.

Intellectual property rights, which is what a patent is, are just as much a creation of government as depreciation. It is another form of privilege for private property.

This step turns health care based on bio-data, especially privatized health care, into an extractive industry. We see this approach as well as corporations racing to develop vaccines. Corporations have long developed vaccines for pets and farm animals, but have resisted developing human vaccines, since they do not produce much profit as compared to “treatments” that you pay for across your lifetime.

One reason that government becomes the market of last resort is because economic production is increasingly done by computer systems and robots. As machines replace human labor, that labor cannot be exploited, which is the source of capitalist private profit. But maybe monetized data and data devices allow humans to be exploited for their information, not dissimilar to the exploitation of animals.

So — given these very real developments, with future potential for private profit, is it really likely that the financial industry, which is the major shot-caller in capitalist planning, going to put up with an incompetent, narcissistic, erratic fool for a US President? These boys have run the world since the advent of the Marshall Plan that re-built Europe after World War II. Are they going to give up now? Without even hardly trying?

Unlikely.

The battles we are living through today are a prelude to the battles that will ensue, regardless of who wins the election. The capitalist agenda will remain on the table. They fully intend to culminate their strategy of total privatization. But the story is not over, and the man behind the curtain is private property. The US hegemon is truly fumbling. The rising global popular movement to hold government accountable for public safety and the basic necessities of life in a time of collapse may be diverted for a bit, but it cannot be stopped.

All it requires is class consciousness and abandoning the notions that the status quo will maintain, that incrementalism and piecemeal solutions work and that we can reform our way into a world that puts healing at the top of the agenda.

Reopening Schools: We Do Not Have To Descend Into COVID Hell

By Steve Miller, Rosemary Lee and E.B. Shaw

With Corona virus cases spiking across the country, America is on the verge of forcing millions of people into extreme danger. Suddenly, everyone from CEOs, the President, state governors, and the corporate media are calling for schools to open “to save the economy”.

No country has tried to open schools with the virus spreading like here in the US. We are currently in a massive wave of surging cases in 40 states. There are not enough tests or testing. How do you open schools if you can’t test and trace? There’s no way that you can keep a school safe from coronavirus if the virus is raging out of control in the community where the school is located.

Before schools physically re-open, certain principles of public health must be established:

• No re-opening without full scientific best practices. So far, this is seriously lacking.

• No re-opening without dealing with the vast practical hurdles. These steps require more funding, not less. So far, the funding to address these problems does not exist.

• No re-opening without total and complete public transparency. So far, decisions are made behind closed doors. Planning is slapdash and haphazard at best. Teachers, unions and communities must be fully involved as co-equals with politicians in establishing policies.

• Schools should continue to be food centers for the communities, but they should reinstate and expand what government has cut — access to nurses, vision services, mental health and cultural support. Communities need these services now more than ever.

• We cannot fail to hold government accountable for securing public health and public safety. Governments must do what it takes to guarantee childcare in safe ways.. We have no choice here. Public schools are still controlled locally. We must exert our power to protect our children.

We’ve already seen what happens when we use shortcuts and go against public health guidance in reopening. Other countries have been successful in suppressing the level of COVID-19, they have one thing in common — a national coordinated strategy.

The US response to the virus has been fractured, reckless, and incompetent. Rather than the federal government organizing a national coordinated response, it has put corporations in total control.

The government refuses to provide adequate unemployment or health care, thus making families desperate to work.  Many European countries cover 60% to 90% of workers’ wages when they can not work. So do we really have to risk our children and our families so corporations benefit? It really does not have to be this way.

Corporations are demanding their workers return to work so they can make a profit from their investments, but they refuse to provide childcare. So children, teachers and school staff, families and communities, must risk their lives to open schools that could not even guarantee toilet paper before the virus. The only people to benefit from a premature physical opening will be billionaires and politicians of both parties. This is why they tout political reasons to re-open, while ignoring scientific precaution.

These same people, who previously had no trouble closing schools throughout neighborhoods and subjecting children to hours of high-stakes testing at computer screens, now state that keeping children out of school denies them the “emotional, social, and knowledge growth they desperately need.” Suddenly, also, the teachers who were degraded as the worst problem with public schools are now heroic essential fron-tline workers!

Schools are set to open district-by-district across the country while many nail shops, gyms, and bars remain closed. Many schools only use easily contaminated recycled air throughout whole buildings instead of widows that can be opened to bring in fresh air. Taking steps as minimal as social distancing will cost vast amounts. Little things become big problems. Before, a Kindergarten teacher could take the whole class to the bathroom at once. Now a class of 15, that requires 6 feet of spacing, forms a line 90 feet long! And how exactly are bathrooms going to be sanitized?

There are no clear guidelines; planning is confused and hidden from the public; PPE’s are in short supply; school budgets are being slashed even as the costs of adequately dealing with the virus skyrocket. School nurses were virtually eliminated before the virus hit. Now, what exactly is going to happen if a child feels sick?

The gap between school finances, destroyed by the virus, and the greatly increased costs, also caused by the virus, runs into billions. The American Federation of Teachers (AFT) has estimated the funding required to reopen public schools safely is at least $116.5 billion.

Trey Hollingsworth, Indiana Congressman, stated that people dying from the virus is the lesser of two evils to the economy not opening up. CNN reported that Hollingsworth said: “it is always the American government’s position to say, in the choice between the loss of our way of life as Americans and the loss of life, of American lives, we have to always choose the latter.” Lieutenant Governor of Texas, Dan Patrick, announced that old people should welcome re-opening, even if that means they would die.

This corporate class also touts the murderous notion of “herd immunity”, meaning that after 3 million people or so die, the virus cannot spread any more. We have watched health care workers sicken, live in their cars so not to infect their families, and wear plastic bags instead of PPEs. What will happen to school staff?

When policies and political choices set up people to die at “acceptable levels”, it is fair to conclude that this is not an accident. Even before the virus, digital technology has been turning jobs into temp work or no work at all. Corporations are simply not going to spend money to support people they cannot use. In this context, physical re-opening is designed to accept a specific amount of death, to establish toleration of death as a new normal.

Can schools physically re-open now? If so, how?

Hawaii has announced that schools will re-open when no one in the state has tested positive for one month. The Florida Education Commissioner, Richard Corcoran, is the former Speaker of the Florida House and a charter school owner. He demands that Florida open its schools 5 days a week even as Florida COVID cases reach record high levels. Precaution is scrapped for pragmatism.

America’s schools do not meet even the most lenient advice for physical re-opening, which are found on the White House website. Teachers advocate no physical re-opening until no new cases arise in the past 14 days, the time for symptoms to appear. Some districts are beginning to scrap immediate physical re-opening.

Once again, as with the George Floyd rebellion, our character as a people will be tested. Will we stand together, or will our passivity make us complicit in sanctioning unnecessary public death?

Yes, the mental, physical and emotional health of children is critical. No, this cannot be achieved by physical re-opening schools like before. That is impossible. We can find ways to bring young people back together again, but it means letting go of the idea that schools can return to normal. This step requires the imagination and agency of the communities schools serve.

The virus proves that no one is safe unless everyone is safe. The same is true for our schools. For a country founded on genocide, slavery and inequality, the challenge once again is to stand up for the right of quality public education for all.

Everyone now can see the critical and vital importance of public schools to our communities. Even before the virus, schools have been the anchor of the community. Closing public schools is a method of gentrification and community dispossession. Now we see once again that healthy schools create healthy communities and healthy communities create healthy schools.

Teacher unions and parents are advocating that public schools, in these times of COVID, should anchor the communities by expanding the public services they offer.

Immediate and Future Challenges

Whether schools physically open or not, the nature of public education has dramatically changed. Through the Spring, public schools offered online distance learning. As students graduated in June, Zoom Video Communications, Inc announced that it was being used by 100,000 schools globally.

Education has gone from being supported by technology to being dependent on technology and from being corporate-supported to becoming corporate-dependent.

Corporations like Pearson and Google tout online education as a way of saving money in tough times, but this just leads to private profits for corporations.

The latest vampire is Turnitin.com. Students turn in their essays. The website checks for plagiarism; then it sends it back to you, marked in red where you copied something out of the encyclopedia. But they also offer school districts more advanced options like: grading every paper… or maybe even student surveillance.

Under corporate control, online learning, distance learning and virtual charter schools are a dismal failure. The California Attorney General is investigating the entire virtual charter industry for putting private profit ahead of quality education. The largest virtual charter corporation, K12 Inc, “educates” 120,000 students, making $900 million in revenue, all from taxpayer money earmarked for public education. Only half of online high school students graduate within four years, compared to 84% nationally. The Center for Research on Education Outcomes found that students in virtual charters do so poorly in math and English that it’s as if they didn’t attend school at all.

Most teachers estimate that only about 25% of their students do well in online education. The education model is the same drill & kill, test & fail regime that students could not succeed in even before the virus. Most students have trouble learning through screens since the other vital ways that humans learn are eliminated or reduced. And, of course, how does a family provide enough laptops for every child, much less the expense of connecting through Wi-fi?

Government at every level has invited billionaires, tech corporations, and CEOs to determine what public education will look like as the virus rolls on. New York Governor Andrew Cuomo invited Bill Gates and Google into the state to “re-imagine public education.” In other words, government is systematically replacing elected officials, who are (theoretically) accountable to the people, with private, unaccountable capitalists in a campaign to defund and privatize public schools and debase the purpose of education.

The ethical and moral implications of this corporate effort to terminate the education our children and communities need are highly disturbing. There is little public discussion about this even as government proclaims online learning as the miracle of the age.

US schools at every level are facing a crisis of unprecedented proportions. By the time the 2020-2021 school year is over, corporations and governments – if unopposed – will establish a degraded model that works only for the elite and very few others.

When government can bailout billionaires with trillions of dollars, we see that the money exists to build a system of public education that can build the leaders we need to transform the world.

Teaching today must unleash the marvelous powers and creativity of our collective humanity. Students are the people the world needs today to overcome the challenges of a desperately sick population, a sick society and a sick planet.

Unlike most of the world, where the needs of society were put first, in the US every problem is presented as an individual problem and every solution is presented as an individual solution.

It is the same with public education. Ronald Reagan proclaimed that there was no such thing as “society”, meaning no problems result from society, so you’re on your own. This has been America’s mantra ever since, unless of course it relates to corporate governance.

But now we see, scientifically, that the only solutions that can work must be organized at the national level by government to benefit everyone. Social problems are not individual; the emanate from how society is organized. Social problems require social solutions.

Just as COVID-19 demands a national coordinated strategy, the problems of safely re-opening public schools demand national solutions. Not piecemeal, local, short-term quick fixes. Instead, upgrade our schools by combining a public health approach with a public schools approach.

Steve Miller, Rosemary Lee, and E.B. Shaw are members of the National Public Education Committee of the League of Revolutionaries for a New America