Union Politics: The Contradictions of a Capitalist Labor Movement

By Juan Gonzalez Valdivieso

On December 1st, 2023, the United Auto Workers (UAW) officially voiced their support for a ceasefire in Gaza, becoming the largest labor union to do so. The announcement came from the union’s director, Brandon Mancilla, during a press conference outside the White House. In announcing, the UAW added its name to a growing list of union locals, national chapters, and labor organizations that have called for an end to the genocidal violence still unfolding in the region.

On January 24th, the UAW went on to announce their endorsement of Joe Biden for president during the union’s national Community Action Program (CAP) conference. Thus, in just under two months, UAW managed to call for an end to a genocide whilst simultaneously endorsing a second presidential term for one of its most powerful proponents. And they are not alone. Of the roughly 150 organizations that have signed onto the labor movement petition calling for a ceasefire, nearly one third have also publicly endorsed — or are directly affiliated with a national chapter that has publicly endorsed — Biden for the presidency. Such a gross contradiction cannot be ignored, especially as it represents only the latest example of a broader phenomenon present in much of the American labor movement: capitalist dissonance.

The movement’s shortcomings are well-documented. Much of the labor landscape in the United States — while certainly working to win immediate material improvements for the working class — often fails to provide a more comprehensive framework for revolutionary praxis that looks to a liberated future. The Black Rose Anarchist Federation said it best in their piece ‘The State of Labor: Beyond Unions, But Not Without Them,’ when they described contemporary American unionism as a largely “bureaucratic, service-oriented form” that remains “controlled by a hierarchy of career officials who operate outside the workplace, manage the sale of labor to capital, confine union struggles to narrow and legalistic ‘bread and butter’ issues within their respective industries, and encourage members to pin their hopes to the Democratic Party.” In other words, unions in the United States exist within a heavily enclosed space, one in which their organizational structures and strategic logics, either by external force or internal conviction, do not move past the operational and theoretical limits imposed by the powers that be.

On the domestic front, this can mean a gross lack of worker militancy. Pro-establishment sensibilities make many labor unions averse to necessary direct action and militant resistance in the workplace, especially when financial and legal stability is at stake. This was the case when bureaucratized inaction kept grocery workers across the country from winning tangible post-pandemic gains with their union, the United Food and Commercial Workers (UFCW). It exacerbated the ever-growing division between rank-and-filers and leadership in the education sector with both the National Education Association (NEA) and the American Federation of Teachers (AFT). It also prompted members of the Service Employees’ International Union (SEIU) to begin a petition campaign calling on leadership to demand a ceasefire in Gaza. After all, career organizers and labor leaders are incentivized to chart the path of least resistance, forged by impotent contract negotiations and anti-strike clauses. The same can be said for international solidarity. A top-down labor union in cahoots with the US government may state their disagreement with a foreign policy decision — as many did by signing the ceasefire petition. But their entrenched incentive structures and hierarchical layout will rarely allow for a wielding of labor power that truly beats the state into submission. 

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This is because such radical resistance would put the stability of the managerial labor class at risk. Domestically, opposing a two-party candidate for the presidency means foregoing an otherwise surefire way of securing business-as-usual governance for the next four years. The third-party-facing or non-electoral implications of such opposition would produce a level of uncertainty not compatible with the otherwise predictable “bread and butter” issues, industry-specific bargaining, and established labor relations so characteristic of big unions. On the international scale, the same is true. The stability of managerial labor is feasible only if preceded by that of US capital, as downturns in economic growth and fluctuations in performance can pose a risk to corporate power -- the de facto handler of labor managers -- and radicalize workers into embracing more militant sympathies and radical action as a result. One outstanding threat to such stability is the emergence of left labor movements abroad, as such movements are often characterized by policies that harm US economic interests such as the nationalization of industries and the cutting of economic ties with Western nations. The logical conclusion of such a dynamic can be seen in institutions such as the American Federation of Labor and Congress of Industrial Organizations’ (AFL-CIO) Solidarity Center. This agency has a stated mission of “[e]mpowering workers to raise their voice for dignity on the job, justice in their communities and greater equality in the global economy.” Meanwhile, its exploits have heavily involved confrontations with leftist governments in South America, often via funding they provide to opposition groups in countries such as Venezuela.

Highlighting this unfortunate reality is hardly an all-encompassing indictment of the US labor movement. The undeniable upsurge in union activity following the COVID pandemic improved people’s lives and deserves credit. Between 2021 and 2022 alone, “the National Labor Relations Board saw a 53% increase in union election petitions, the highest single-year increase since fiscal year 2016.” The embrace of more militant leadership by unions such as the UAW and the Teamsters has yielded significant victories as well, not to mention the advances made by the Writers Guild of America and the Screen Actors Guild in September of last year.

But the imperative of organizers and class strugglers to reshape unions to better facilitate collective liberation remains. This can take many forms, such as bolstering organizing efforts by independent unions like (ex: Trader Joe’s United, Amazon Labor Union), supporting the ongoing work and growth of rank-and-file-oriented unions like the Industrial Workers of the World, and backing the emergence of caucuses and coalitions within established unions that either organize to push their organization in a more radical direction, or ultimately become an independent union that can subsequently hold a candle to its establishment counterpart in terms of size and resource access.

Reformist concessions at the negotiating table and rhetoric restricted to the worker-boss dichotomy do not have to be our daily bread. Worker militancy on the shop floor and a rhetoric of class warfare are more in line with the aims of a revolutionary movement. Moreover, symbolic slaps on the wrist and stern talking to’s — petition signatures, public denouncements — needn’t be the only forms of accountability when our government actively finances and endorses acts of genocide. We can do better. Acknowledging this potential will allow us to transform labor in America, liberating ourselves and each other in the process.

Juan Gonzalez Valdivieso is a Colombian writer, organizer, and artist. In his writing, he seeks to interrogate the nuances of socialist thought and praxis.

Exchange Rate Depreciation and Real Wages

By Prabhat Patnaik

Republished from People’s Democracy.

MOST people, including even trained economists, fail to appreciate the fact that an exchange rate depreciation, if it is to work in reducing the trade deficit in a capitalist economy, must necessarily hurt the working class by lowering the real wage rate. A capitalist economy, looking at it differently, improves its trade balance, for which it must improve its competitiveness, by lowering the real wage rate; and an exchange rate depreciation is one way of doing so.

Most textbooks in economics do not mention this fact. They are written from the point of view not only of bourgeois economics in general, but of a bourgeois economics that invokes a model of a capitalist economy that is far removed from reality. They see this economy as consisting of a set of markets in each of which a price-rise is supposed to lower excess demand. The foreign exchange market is one such; and the text books simply say that as long as the demand and supply curves have the right shape in this market (so that excess demand is lowered through a price-rise), an exchange rate depreciation, which is the same as a rise in the price of foreign exchange, lowers the excess demand for foreign exchange, namely lowers the trade deficit. This is where their analysis of an exchange rate depreciation usually ends; and then they move on to discussing under what conditions the curves have the right shape.

This entire mode of analysis however is flawed. Most economies need imported inputs, usually oil and natural gas; the oil-producing economies on the other hand need a range of non-oil raw materials which they cannot grow themselves but cannot do without. The imported inputs,together with labour and domestically-produced current inputs, constitute the list of current inputs. And in all capitalist economies, the prices of commodities are determined as a mark-up over the costs of current inputs per unit of output. This is of course true under monopoly capitalism. This is how oligopolists operate; they fix prices in this manner and let the level of demand at this price determine what is produced. Some argue that capitalism even in the earlier period was characterised by such price-fixing, and that the classical political economists’ conception of free competition (which Marx took over) where the producers accepted a price impersonally determined by the market, was not a realistic picture. But this discussion is not germane to the present issue; the basic point here is that in any modern economy, prices are fixed by oligopolists as a mark-up over the unit prime cost.

Now, suppose a currency depreciates by 10 per cent; then the local currency prices of all imported inputs go up by 10 per cent, and therefore the part of unit cost arising from imported inputs in the production of any final good goes up by 10 per cent. If real wages were to remain unchanged, then money wages will have to keep going up proportionately as prices rise; and in such a case prices will ultimately rise by 10 per cent in local currency, with money wages also rising by 10 per cent and hence unit labour cost too also rising by 10 per cent. (The unit prime cost arising from domestically-produced inputs rises in the same ratio as the final produced goods price and therefore will also rise, automatically, by 10 per cent). But if local currency prices rise by 10 per cent following an exchange rate depreciation of 10 per cent, then this means there has been no real effective depreciation whatsoever; and hence not an iota of difference will be made to the trade deficit.

If domestic prices rise by 10 per cent following an exchange rate depreciation of 10 per cent, then the prices of export goods in terms of foreign currency would remain unchanged; and hence there is no question of any increase in the quantity of exports owing to their becoming cheaper. Likewise, if domestic prices rise by 10 per cent following an exchange rate depreciation of 10 per cent, then the local currency price of imported goods would rise by 10 per cent, the same as domestically produced goods, in which case there is no question of any reduction in the quantity of imports. It follows therefore that with no increase in the quantity of exports and no decrease in the quantity of imports, the trade deficit measured in foreign currency remains unchanged.

An absolutely essential condition for an exchange rate depreciation to work therefore (and this is only a necessary condition with no guarantee that its fulfilment will actually improve the trade balance) is that domestic prices must not rise at the same rate as the price of foreign exchange owing to an exchange rate depreciation. And this can happen only if money wages do not rise by the same proportion as the final goods prices; that is, if there is a fall in the real wage rate.

This can be seen as follows. If, say, a 10 per cent exchange rate depreciation is to make any difference to the trade balance, then the domestic prices must rise by less than 10 per cent, say, by 7 per cent, for only then would there be some real effective depreciation. For this to happen, the unit prime cost must rise by 7 per cent, as the mark-up by the capitalists is a given ratio. Now, the unit prime cost has two relevant components: the unit labour cost and the unit imported-input cost (unit home-produced input cost rises in the same ratio as the final goods price and therefore need not be considered separately here). Therefore, for the unit prime cost to rise by 7 per cent, since the unit imported-input cost rises by 10 per cent, the unit labour input cost must rise by less than 7 per cent, say by 5 per cent. With given labour coefficients in production this can happen only if money wages rise by 5 per cent, when prices rise by 7 per cent; that is, when real wages fall.

Of course, there can be real effective exchange rate depreciation, with domestic prices rising by less than the 10 per cent rise in the price of foreign exchange, even with real wages remaining unchanged, if the profit margins of the capitalists could be lowered. But this is precisely what is not possible in a capitalist economy. This can happen in a socialist economy where the enterprises, mostly State-owned, can be directed to charge lower profit margins, so that a real effective exchange rate depreciation can be brought about with no fall in the real wage rate; but in a capitalist economy, the profit-margin is not amenable to any reduction. A real effective exchange rate depreciation therefore necessarily imposes a squeeze on the real wage.

But even assuming that the workers are not strong enough to resist such a reduction in their real wage rate, there is no reason to expect the trade balance to improve: if the trade balance is to improve then domestic employment and output will increase, but this would mean a reduction in output and employment in some other countries at whose expense this economy would be increasing its market-share. If those countries retaliate by depreciating their exchange rates in the same proportion, then there would be no change in market shares and no change in trade balances either.

When the competing countries depreciate their exchange rates in retaliation, the real wages go down in those countries as well. This mode of reducing trade deficit therefore, when no country is making any independent effort to raise the level of demand through income redistribution in favour of the workers or through larger government expenditure, simply results in each squeezing its workers to no avail.

The attempt to raise domestic employment at the expense of rivals, through an exchange rate depreciation (that is supposed to work through reducing the trade deficit) is called a “beggar-my-neighbour” policy. The pursuit of “beggar-my-neighbour” policies by several capitalist economies raises employment nowhere while reducing the real wage rate everywhere.

But that is not all. The reduction in real wages can, under certain circumstances, even lead to a reduction in employment everywhere because of the associated reduction in aggregate demand. It is a symptom of the irrationality of capitalism that a group of countries vying with one another to improve their positions by pursuing “beggar-my-neighbour” policies, may ultimately end up with each country becoming worse off than before.

It is a sign of the hopelessness induced by the current capitalist crisis, that, notwithstanding the experience of the 1930s, voices are audible in the US today which seek a revival of the US economy through a depreciation of the dollar.

From Neoliberalism to Nowhere

By Thomas McLamb

From 1932-1945, FDR responded to the Great Depression by way of the New Deal to temporarily put a bandage on the crises of capital. This creation of the American Welfare State served as the response to the occasional short-term downturns of capitalist expansion. From FDR’s term until the Oil Crisis in the early 70s, the United States capitalist system enjoyed a period of steady growth and a stable rate of profit, whose occasional declines were solved by way of a variety of government programs that sent one clear message; the government existed to serve the people.

When Nixon took office, the processes of persistent economic inflation became apparent, indicating that this long period of economic expansion and stability was changing. That said, Marxist analyses of economic patterns of expansion, contraction, and long-term growth should stray away from the use of inflation as an economic pattern. Inflation is merely the process by which bourgeois economists summarize the degeneration of working-class buying power and strengthening of capitalist class buying power. In one short phrase – the dollar is fundamentally worth less to the worker than it is to the capitalist. While the capitalist is able to purchase more money with less, an exponential process depending on how much capital has been accumulated, the worker is dependent on purchasing essential life commodities, healthcare, food, housing, etc. with their dollar; the worker does not enjoy the luxury of purchasing more money with less, a process that inevitably leads to the phenomenon neoclassical economists refer to as inflation. Regardless of the actual relationship of inflation and the working-class, the aforementioned cycle of profits and growth from the post-war periods came to an end with the ’73-75 recession. The long wave of capitalist expansion had begun to wane, signaling the forthcoming period of long-term stagnation of working-class wages still underway today.

The end of the doctrine of the Welfare State led directly into a new doctrine of economic policy. The dominant economists of the period suggested that government welfare was wasteful and inefficient, that the occasional patterns of economic recession could be solved by allowing the markets to regulate themselves. The general assumption of these economists, i.e. Friedman et. al., was that government welfare resulted in an exponential process of inflation that could be remedied by a revival of liberal economics. This renascent adoration of laissez-faire capitalism came to serve as the genesis and framework of neoliberalism – the doctrine of cutting government expenses by any means necessary. Following the birth of neoliberalism, austerity quickly set in. The government responded to crises by allowing the bottom to hit the bottom, and externalizing and outsourcing previously domestic forms of labor that had now suffered from a declining rate of profit.

Alongside the externalization and outsourcing of labor from the United States, a process that signaled the shift of the U.S. to a strictly service and information economy, came a renascent nationalism and patriotism within the United States. This renascent nationalism served as the popular justification for the endless oil wars in the middle east, the incessant and undemocratic CIA-backed military coups in Latin America, and the continuous starving acts of tariffs and embargoes against foreign governments who refused to kneel to the imperialist war cry of neoliberalism. In industries where the rate of profit waned in the United States, the government merely cut popular welfare programs to fund the imperialist war machine to appropriate resources, governments, and economies of foreign governments, continuing the accumulation of capital and comfortable seat of influence of America.

Away from the wars, coups, and starvation acts outside of American borders, American workers waded through an ever-changing industry of employment in the United States. The neoliberal response to the discovery of ‘inflation,’ better understood as another symptom of the declining rate of profit, resulted in the same outcome the neoliberal economists and politicians believed they would be avoiding – a period of long-term stagnation of working-class wages and the devaluation of the buying-power of the working-class by large-scale privatization and imperialist efforts to sustain the total economic growth of the U.S. economy. Of course, these solutions worked to create more wealth than ever and higher profitability that ever before in the United States, but the measure of the total economy and its exponential growth ignores the continuous struggle of the non-propertied class. Marx’s theories of surplus value provide us with the truth that all profit is derived solely from labor. With that understood, wherever labor costs can be reduced, they will be, and profits will increase. Additionally, the buying-power of those wages themselves have been structurally diminished long-term by the neoliberal doctrine. This process of the stagnation of working-class buying power can be observed in the history of wages since the beginning of the neoliberal period. Real per capita wealth in the U.S. has more than doubled since 1964 while average real wages have barely increased. From 1964 to 2018, the buying power of the average worker in the United States increased by only 11.7% while the actual average wages themselves have increased by 806%. This mass rate of inflation is not an aberration of capitalist market economies – it is precisely a function of the long and short waves of capitalist development; all of which is accelerated and exaggerated by neoliberal austerity.

Over the past 50 years, over 90% of all growth in income has gone directly to the top 5% of households in the United States. Just short of 3% of total economic growth went to the bottom 20% of households, while more than half went to the wealthiest 20%. Wealth inequality from the late sixties throughout the development of the neoliberal period can be described in one sentence – the rich got richer and the poor get poorer.

The bottom 95% of families have experienced within themselves disproportionate rates of economic growth relative to productivity. While workers are producing more than ever for their bosses, hikes in productivity in the neoliberal period haven’t resulted in higher wages at all. Drew DeSilver has pointed out in his work through the Pew Research Center that while productivity amongst workers has increased by 80% over the past 30 years, the data will show that the buying power of the wages those workers earned has moved up barely a percent and a half.  Despite this near doubling in productivity, neoliberal austerity and market purism have made more money than ever for those at the top, and stolen more than ever from those at the bottom. The general tendency of money to move upwards on the capitalist market has resulted in exponential gains for the ultra-rich, which as mentioned before, creates an exponential increase in the buying-power of the rich and a stagnating or decreasing buying-power of the poor.

Alongside the hikes in productivity and slow growth of wages, nearly 80:1 from 1987-2017, there has been a drastic shift in employment by major industry sector amongst the total workforce. From 1948-1975, the total employees in the United States increased by 65.67%, around 2.43% annually. From 1975-2017, total employees increased by 79.23%, or 1.89% annually. Even though productivity and total wealth increased exponentially over the neoliberal period, employment decreased in growth year after year.

Amongst the general change in total employment, specific industries saw drastic changes during the neoliberal period compared to the period of government intervention policy stemming from the FDR era. Manufacturing jobs have disappeared in mass numbers since the beginning of the neoliberal era. Manufacturing has been pushed abroad to keep up with the ‘cutting costs’ doctrine of neoliberalism, while more workers than ever are forced into low-paying service and information jobs, since these are the only jobs that exist anymore. Retail positions have increased proportionally with total employment, but many of these positions are occupied by formerly well-employed manufacturing jobs. The shift in employment by major industry sector can be observed as a primary vehicle for the slow-growth of working-class buying power, as well as an expression of ever-disappearing manufacturing jobs.

In terms of buying power of the working-class, the numbers represent a similar transformation of shares of economic expansion, though the buying-power can illuminate a more concrete examination that accounts for the bourgeois notion of inflation and market behaviors.

From 1967 to 2017, the buying power of the lowest 80% of families grew at a similar rate to the actual dollar amount in the previous data set. From a sliding scale of the least to most wealthy in terms of economic expansion, the buying-power of the poor increased by around half compared to their dollar-amount wages while the buying-power of the wealthiest percentile classes increased by around 2.1 times. Though these numbers from the census do adjust buying power to examine the market behaviors and adjust the wages to paint a more accurate picture using consumer price indexes, these numbers are not adjusted to account for factors that only affect growth amongst the ultra-rich, i.e., debt, investments, property, etc. Furthermore, the tendency of capital upwards results in exponential increases in the buying-power of those at the top, but commodities can only grow so expensive before those at the bottom can no longer pay for them, thus the tendency of the rate of profit to fall despite exponential levels of expansion for the most-high spheres of capital.

Of course, the most wealth 5% of households in the United States have enjoyed economic expansion that dwarfs that of those at the bottom, a near 60-40 split. This is largely due to the existing ownership of the means of production and investment spheres by the ultra-rich maintaining their positions through one of the largest hikes in productivity in the history of capital itself.  The bureau of labor statistics provides us with a catalogued measure of productivity increases by major industry sector, though some catalogs only go back as far as 1987. Despite this, the numbers are still useful to examine the production and profitability levels of economic industry relative to real wage increases.

There are data series on productivity in the manufacturing sector using the same measuring scale as the data set above, though the historical series only date back to 1987, presenting several problems, but the data itself is still very useful. The data is included in the above chart, though 1967-1986 are omitted for mentioned reasons.

Referring to the real average household incomes of the same time-set discussed above, we can build a relationship by percentile class of the wage-productivity increase from 1967-2017. Listed below are both the data from 1967-2017 as well as a smaller section from 1987-2017 to include manufacturing data relative to the other major industry sectors.

Regardless of year and industry, there is a general tendency both within the latent capitalist mode of production as well as the neoliberal tendency for exponentially disproportionate ratios of growth to productivity depending on income class. Since 1987, there has been a harsh stagnation of wages especially amongst the poorest 20% of households in the United States that was not shared in years prior. Following the tendency of the income-productivity relationship upwards can illuminate the fact that the neoliberal period has resulted in the richest few in the United States have received the overwhelming majority of money and buying-power from the bottom. The philosophy of trickle-down economics combined with the furthering development of the capitalist tendency towards class-monopoly has resulted in both the longest period of wage stagnation in the history of American capitalism as well as the largest wealth inequality in the history of this country. Hikes in productivity are useful for examining the rate at which working-class wages are outpaced by economic growth, but these productivity measures also help illuminate the mass-level of accumulation and theft that the billionaire class has taken part in over the past 50 some-odd years.

In all industries, sans manufacturing, the highest 20% of household incomes have reaped the rewards of the increased productivity of the bottom 80%. The outsourcing and evisceration of American manufacturing deals primarily with the need for a higher profitability from labor by those who own the manufacturing means, as well as the systemic decline in union membership and labor solidarity from Reagan to present. Furthermore, the top 5% of families have almost exclusively reaped the rewards of hikes in productivity, being the only percentile class in the country that has achieved a level of economic growth that is even barely comparable to the growth of productivity. Again, this wage-productivity relationship only grows more dramatic and exponential as you examine those higher and higher up on the wealth ladder. For those at the very top, their economic growth makes that of those of the bottom 99% seem like raindrops in the vast open ocean.

In the period of FDR, there were three solutions to the crisis of capitalism across the world – Bolshevism, fascism, and social-democratic government policy. If the policy of FDRs social-democratic platform was to sustain the rate of profit through bailing out the worker through mass government programs, the policy of neoliberalism was to simply allow the economy to bottom out, so that the rate of profit could be restored organically in the market. The neoliberal period which proceeded from the welfare state allowed for mass accumulation of capital by the ultra-rich at exponential levels. In the early 20th century, bailing out the ultra-rich would not allow for an organic recovery of the rate of profit since the raw inequality between the rich and poor paled in comparison to that of the 21st century. However, in 2020, the capitalist system has been able to sustain its profits by doing precisely what couldn’t be done 100 years ago – bailing out the 1% of the 1% time after time. The capital that has been accumulated in disproportionate amounts over the past 100 years has facilitated this very process of the reintroduction of mass government programs that serve the market, only this time, they serve those at the top instead of those at the bottom. The program of neoliberalism is the death knell of capital, whose only defense is to consume its very mechanism of its own creation and sustenance.

The rate of profit is in decline. There are two paths forward from neoliberalism. The first path is the possibility that capital can save itself through the false-promises of several decades of social-democratic reform, recreating the conditions that led to the development of neoliberalism. The second path is the dissolution of capital by its own hand. Capitalism has dug its own grave through the doctrine of neoliberalism, resulting in the greatest wealth inequality in the history of capital and the ever-growing contradictions of labor and productivity. The path forward from the death knells of capital cannot be understood as some sort of communist eventuality. Capital will certainly die, but what takes is place is certainly indeterminate.

Neoliberalism has wreaked havoc on the worker for half a century now. Corporate tax cuts, the starvation of the worker, and the greatest wealth inequality the country has ever seen – these are the legacies of neoliberalism. Its doctrine has been nothing but the largest heist in the history of capitalism, with the ultra-rich stealing more every day from the pockets of the worker. The path forward must address these concerns, lest we allow the economy to bottom out, and leave authoritarianism and failed bourgeois economics to dominate the world as it has for the past century.

Thomas McLamb is a Lebanese-American Marxist writer, historian, and graduate student residing in the so-called United States. Thomas has spent the last few years researching historic wages, economic expansion, recession, and the currents of capitalism both in the so-called United States as well as internationally.

A Modest Proposal for Global Egalitarianism

By Hank Pellissier

Editor’s Note: The ideas and proposals expressed in this piece do not necessarily reflect those of the Hampton Institute.

Walking under the freeway past the homeless encampment, you hear a voice, “I need 50 cents.” Ignoring the beseecher, you scan the news on your smartphone: Jeff Bezos now has $300 billion. Ahead, you see a struggling woman forced into an ICE van, next to signs promoting two candidates you despise but realize will control your future.

Does society have to be like this?

No. This essay will present an option, grounded in justice and liberty.

Global Egalitarianism is a political philosophy structured on the moral ideal of truly establishing all human beings as equals. 

We believe that concept, don’t we? All humans are equal in importance. This maxim inspired American and French revolutions, abolition of slavery, the women’s suffragette movement, gay rights, and every effort to overthrow a tyranny. 

All People Are Equal is the compassionate principle of modern, democratic civilization - we embrace this belief and expect others to react with anger if this ethos is violated. 

Earth should be an Egalitarian Planet. But it isn’t. 

Equality is distant dream today due to economic, social, and political institutions that divide rich and poor, powerful and powerless, bordered nations from bordered nations. 

In our 2020 world, people aren’t equal. The power of a rural, single mother in the Democratic Republic of the Congo is insignificant compared to a man addressing his cabinet at 1900 Pennsylvania Avenue in Washington DC. 

• The richest 1% earn 26.3 times more than the bottom 99%.

• There are 2,095 billionaires, but 71% of people live on less than $10 a day.

• There are more slaves on Earth than ever before.

• One person has visited every nation on Earth but millions have never been out of their village.

• 750 million people would emigrate, if they could.

• 52% of people are dissatisfied with their democracy, and 71 nations aren’t democratic.

• 4.5 million Americans have PhDs, but 775 million people in the world are illiterate.

Let us obsolete these depressing statistics and establish global egalitarianism instead, using the tools of Wealth Redistribution, Open Borders, and Pure Democracy. 

WEALTH REDISTRIBUTION

Robin Hood is an egalitarian champion because he ‘robbed from the rich and gave to the poor.’ Many others - like Juraj Janosik (Slovak folk hero), Phoolan Devi (‘Bandit Queen’ of India), and Jose Mujica (President of Uruguay) conducted illegal philanthropy similar to the fictitious yeoman of Sherwood Forest. Today the most laudable proponent of wealth redistribution might be Kshama Sawant of Seattle; she spearheaded the movement for $15/hour minimum wage and she’s presently seeking to nationalize Amazon.

“Redistribution” evokes fear and rage in the upper class; clutching their pearls they hiss, “I worked hard for my money” despite 60% of US wealth being inherited. Most middle income people also bristle when ‘leveling’ is considered - it’s derided as communist thievery to support ‘lazy people.’

Truth is, economic history is a long tragedy of powerful entities enriching themselves by stealing from the poor and middle class. Ethical people are appalled that peasants worked 4 unpaid days a week for their landlord, but today’s situation, where Warren Buffett ($82.47 billion) pays less taxes than his secretary is identically unjust.

The rich don’t need all their money; they just buy unnecessary toys with it, like 169 cars, or giraffes ($40,000 - $80,000) and platinum Arowana fish ($300,000), or a kitchen remodel every three years. I know a man living alone in a $40 million house; his beach town has 147 homeless people. Money doesn’t even ‘buy happiness’ - researchers discovered that more wealth simply creates more want. 

The “Happy Nations” list exhibits the smallest divide between rich and poor. Happy Nations have a smaller ratio between CEO & worker salaries - in #1 Finland the average CEO salary is $99,515 - in #18 USA it is $820,616.

How rich or poor would everyone be if wealth was divided equally, amongst the world’s inhabitants? What’s the PPP per capita? The answer is $17,110 - similar to China and Costa Rica. Plus - if the world had ‘open borders’ - economists estimate global wealth would elevate 50%—150%. For simplicity’s sake, let’s just double the first figure, for $34,220 - a digit between the economy of delightful Slovenia and popular Portugal. 

This figure would lift 2.7 billion people out of their present-day poverty, and of course, lower spoiled others to a more modest standard of living. Solid gold toilets would lose their customers - egads!

How can money be redistributed? Multiple methods exist; let’s quickly discuss a few:

Reparations - Fairness requires that assets stolen from a region are returned, in full, even if the assets were stolen many years ago. Unpaid labor should also be recompensed. It’s evident that Africans and Diasporans of African descent deserve retribution for the enslavement, exploitation, and colonization of their continent. India also deserves to be paid back ($45 trillion?) for the precious treasures the British overlords robbed during colonization, plus the 15-29 million Bengalis who starved to death in the World War II era famine, due to food diverted by Winston Churchill. Similarly, the Dalits (untouchables) deserve compensation from their oppressors for the subjugation they’ve endured. 

Armenians and Greeks deserve reparations from Turks; Congolese deserve reparations from Belgium (King Leopold enslaved the populace on rubber plantations and killed 10 million); South Africans deserve reparations for apartheid; Native Americans deserve reparations from European invaders; Jamaica deserves reparations from Britain; South Korea deserves reparations from Japan; Vietnam deserves reparations from the USA; Serbia deserves reparations from NATO, and Haiti deserves reparations from France. 

Land Reform - Property is overly-owned by the already-prosperous, who enrich themselves further via rentals and extracting resources. Revolts are launched to distribute land fairly, but not often enough and they aren’t always successful. (Model land reforms occurred in Cuba and South Korea.) Oftentimes, land reform is stymied by foreign powers who want to continue gorging themselves with the status quo. Guatemalan and Chilean leaders, for example, wanted land reform but were overthrown by USA-instigated coups. 

Land could be distributed equally, globally. The figures on this are fantastic. If 7.8 billion people divided all the habitable land on Earth, there’d be 2.3 acres per person, claims a University of Texas study.

The Federal Land Dividend strategy of Zoltan Istvan is also worth considering. His idea is to lease USA public land (the government owns 40% of USA acreage, worth $150+ trillion) to provide $1,000 month dividends to citizens. This proposal is a fusion of UBI, Nationalization, and Land Reform tactics. 

Nationalization - Public ownership of a region’s resources and industries is a sure-fire way to equitably distribute profit. Norway’s nationalization of its North Sea oil serves as an exemplary example; the profits guarantee the citizenry with free health care, free education, and pensions. Similar situations are evidenced elsewhere: Bolivia nationalized gas, petroleum, hydroelectricity, and lithium - the latter move led to Evo Morales’s ousting in a coup engineered by US shenanigans. Cuba nationalized all private businesses and factories, including 36 US-owned sugar mills; this led to its decades-long pariah status. Chile nationalized copper; Mexico and Venezuela nationalized oil; Pakistan nationalized steel mills; Quebec province in Canada nationalized hydroelectric; Sri Lanka nationalized tea, rubber, and cocoa; Italy nationalized Italia airlines; India nationalized banks, etc. 

Nationalization exists worldwide, but still, only a small fraction of resources are publicly owned. Far more could be done. The Socialist Alternative party has an egalitarian agenda: they want the 500 biggest corporations in the USA to be publicly owned. Nationalization is fairer than today’s system where products are created by billionaires who pay workers demoralizing salaries. (Apple workers in China work 60 hour weeks for low pay in unsafe conditions). 

Taxation - Progressive income tax, wealth tax, property tax, inheritance tax, sales tax, value-added tax (VAT), and other levies can be used to encourage wealth redistribution. The USA rich were taxed up to 91% in the 1950’s, an era with far better economic equity than today. French economist Thomas Piketty believes “billionaires should be taxed out of existence”; his viewpoint is supported by Bernie Sanders and Alexandria Ocasio-Cortez. “No billionaires”, in my opinion, is a very permissive limitation. I personally think no one needs more than $10 million - this easily guarantees you ‘never have to worry about money again.’

Wages - Minimum wage and maximum wages policies can be used to level the financial field. Luxembourg has the highest minimum wage in the world per nation - $14.12 an hour - but in the USA, that’s topped in at least 17 cities that offer $15/hour or more. If personal wealth, globally, was capped at $34,220 annually, as I previously suggested, $20/hour in a 36-hour work week would be sufficient. Maximum wages only exist in Cuba - this strategy was voted on in Switzerland in 2013 but it failed to pass, receiving just 34.7% of the vote. An obviously target for maximum wage limits is the USA, where corporate CEOs are paid 361 times more than workers.

Universal Basic Income - UBI has accelerated quickly from ‘crazy idea’ to ‘practical solution.’ Early implementations in Canada, Namibia, Finland, Alaska and Stockton, California, suggested its potential. Andrew Yang campaigned for President with UBI as his signature goal. 20th century proponents like Martin Luther King Jr. and Richard Nixon suggest UBI’s major party appeal; Libertarians also appreciate its ability to reduce welfare bureaucracy. UBI guarantees citizenry - either all or selected segments - a monthly check to spend as they please. The Covid-19 pandemic sharply increased interest in UBI; by September 2020 policies were planned for Spain and 20-30 USA cities. 

Corporate Sharing & Worker Power - Germany gives workers significant representation in management, with 50% of the supervisory board of directors elected by labor. Their seat at the table guarantees they won’t be mistreated, like warehouse workers at Amazon, who are automatized and “treated like robots” - or at Tesla, oft-accused of racial hostility and discrimination. Strong unions also provide “higher wages, better benefits, increased economic mobility, and reduced poverty.”

Communes & Cooperatives - Numerous egalitarian communities exist, where members live and work together, sharing labor and profit from their enterprises. Examples include Twin Oaks Intentional Community in Virginia, Hutterite colonies in Canadian and US prairie states, and kibbutzim in Israel. Cooperatives and collectives also thrive worldwide, with research indicating they are more productive than hierarchal companies. Spain has more than 18,000 co-operatives, a legacy from the anarcho-syndicalist movement that preceded the Spanish Civil War. 

OPEN BORDERS

Open Borders are essential in creating Global Egalitarianism. Allowing free and easy immigration to every corner of the planet will deliver these benefits:

• People with specific job skills can relocate to an area where their potential can be maximized.

• People seeking education in their field of interest can move to receive the training they want.

• Commercial items can be transported easily without punitive tariffs and inspections.

• Economists claim Open Borders would elevate global wealth by 50% - 150%. This seems obvious: today millions are unable to produce their potential because they live in environments unsuitable to their skills.

• People with an aversion or disinterest in the culture of their homeland can relocate easily to other cultures where they can intellectually and emotionally thrive.

• People trapped in an overpopulated region or an area ‘going underwater’ due to climate change, can settle smoothly into a safer or less-crowded geography.

• Dangerous mindsets like patriotism, nationalism, and xenophobia will be avoided if everyone can relocate internationally, establishing cordial relationships across the globe.

• War between hostile nations will become increasingly rare if individuals see themselves as global citizens, instead of warriors for a single state.

• Understanding and empathy for all humanity will be elevated if borders are eliminated. Today’s demarcation of WE vs. THEM promotes dehumanization and suspicion of the ‘other.’

• 10. Cultural forms and intellectual ideas will flourish if access is enhanced.

Arguments against Open Borders are listed below, with rebuttals. 

Criminals will escape their homelands and invade unsuspecting neighboring nations!

   — Easily preventable. Access to international travel can be denied to those with a criminal record.

Immigrants from impoverished lands will migrate and seize all the best jobs in foreign lands.

   — Studies indicate most people choose not to move. Example: residents from the impoverished state of West Virginia ($24,774 per capita) seldom relocate 500 miles to the wealthy state of Connecticut ($76,456 per capita). This objection also lacks the morality that global egalitarianism requires. Is it ethical to deprive someone of livelihood because they didn’t grow up as your neighbor? Should their value be lessened because they’re categorized with the subhuman label of ‘alien’? Thirdly, immigrants are generally hired in employment niches the natives lack sufficient numbers to fill. Example: USA needs computer engineers, who are subsequently hired from China, India, Russia, etc. 

Local Culture will be destroyed. 

   — This is the weakest argument of all, as anyone who has eaten a juicy fish taco in Minnesota can testify. Culture survives because it provides joy and speaks to the human condition. Ghanaians celebrate both Christian and Muslim holidays, because they’re all fun. Music, art, cinema, literature and cuisine always borrow across borders: Cubism was inspired by West African masks; the violin (invented in Italy) is instrumental in Chinese concerts; spicy peppers, originating in Peru, are essential in Korean cooking; Nobel Prize novels and Oscar-winning films are applauded everywhere. 

PURE DEMOCRACY

Global Egalitarianism requires huge improvement in politics so all people are truly equal. Most democracies in the world are terrifically flawed; many have been re-classified as ‘oligarchies’ - rule by the rich. Pure Democracy is a goal no nation has yet attained, or is even close to. Achieving this has to be done incrementally. Below are suggestions in approximate order:

• Abolish Anti-Democratic Institutions. Many systems today subvert the will of the majority. These institutions need to be eliminated, or drastically reformed. In the USA this initial step requires abolishing the Senate and the Electoral College, electing Supreme Court justices, and transferring commander-in-chief powers from the President to the House of Representatives.

• Campaign Finance Reform. Political contests need to be publicly-financed - no outside money at all. Candidates abusing this must be disqualified.

• Abolish Lobbyists. Politicians cannot accept funding or favors from corporations and special interest groups; this obviously influences their votes. Washington DC needs to cleanse itself from all potential bribery.

• Ranked Choice Voting. This helps select politicians the majority can at least tolerate, and it eliminates the need to vote for ‘the lesser of two evils.’

• Adopt the Parliamentary System. Presidential government (adopted by 52 nations) is far less democratic than the Parliamentary system, enjoyed in 102 nations. The Parliamentary system enables smaller party representation, it reduces the power of the Executive branch, and it encourages multi-party collaboration.

• Encourage Secessions. Individual political power is elevated if the citizen belongs to a smaller group. A voice is more likely to be heard if it is one voice out of 100,000 - 10,000,000 instead of one voice out of 300,000,000 - 1,300,000,000. Eight of the Top Ten “Most Democratic Nations” have 10 million people or less, and none has more than 35 million people. To guide the world towards this, support separatist groups in Catalonia, Galicia, Flanders, Scotland, Chiapas, California, Texas, and Darfur - and support the desire of Berbers, Kurds, Yakuts, Batwa, Canarians, Balinese, Karenni, Assamese, Uygurs, Punjabi, Rwenzururu, and dozens of other ethnicities to govern themself.

• Demand Initiatives and Referendums (also known as Proposition or Plebiscites). “R & I’s’ provide ballot measures to the citizenry, so they can directly vote on reforms advanced by other citizens. (Surprisingly, 24 states do not even offer this option) Switzerland and Ireland offer the most referendums in Europe. In Asia, The Philippines is prolific with plebiscites.

• Poli Sci Education Required? Fear of ‘mob rule by idiots’ is often just elitism, but it would be alleviated if citizens has to pass information and logic tests for the right to vote.

• Abolish Politicians. Representative democracy is flawed because politicians are often narcissistic, authoritarian, and corrupt. If direct democracy referendums are in place, there’s no need for conniving intermediaries.

• Emulate Rojava Communalism - Rojava - the Kurdish autonomous zone in northern Syria - governs itself with a ‘communalist’ structure, designed by American political philosopher Murray Bookchin. Rojavans enjoy enormous power at the community level; its ‘bottom-up system’ provides a voice to everyone. The long-term goal of communalists is to organize Earth’s inhabitants into thousands of self-governing communities that are intrinsically linked into non-competitive, ever-large confederacies.

CONCLUSION

Do you find these utopian ideas preposterous? Science fictional? A wonky, cringe-inducing re-write of John Lennon’s “Imagine’?

"First they ignore you, then they laugh at you, then they fight you, then you win.”

Disillusionment with the status quo, twinned with social media, can create rapid change.

Global Egalitarianism is the future we need.

References

Introduction

Jeff Bezos - $300 billion https://www.ccn.com/jeff-bezos-300-billion-amazon-becomes-worlds-8th-largest-economy

Global Egalitarianism https://globalegalitarianism.wordpress.com/about/ https://link.springer.com/referenceworkentry/10.1007/978-1-4020-9160-5_96 https://simoncaney.weebly.com/global-egalitarianism.html

equality inspires revolutions, etc. https://www.nps.gov/revwar/unfinished_revolution/01_all_men_are_created_equal.html

richest 1% earn 26.3 times more than bottom 99% https://www.fool.com/investing/2019/07/29/5-mind-blowing-statistics-about-the-richest-1.aspx

2,095 billionaires https://indianewengland.com/2020/04/forbes-releases-34th-annual-list-of-global-billionaires-includes-several-indians-and-indian-americans/

71% of people live on less than $10 a day https://money.cnn.com/2015/07/08/news/economy/global-low-income/index.html

more slaves on Earth than ever before https://www.nydailynews.com/news/world/slaves-time-human-history-article-1.3506975

One person has visited every nation on Earth https://www.telegraph.co.uk/travel/news/man-has-visited-every-country-in-the-world/

750 million people would emigrate, if they could https://news.gallup.com/poll/245255/750-million-worldwide-migrate.aspx

52% of people are dissatisfied with their democracy https://www.pewresearch.org/global/2020/02/27/satisfaction-with-democracy/

71 nations aren’t democratic https://www.reference.com/world-view/countries-democracy-8f9e05f7d96a76e7

775 million adults are illiterate https://www.theglobeandmail.com/news/world/global-rate-of-adult-literacy-84-per-cent-but-775-million-people-still-cant-read/article4528932/#:~:text=There%20are%20775%20million%20people%20in%20the%20world,in%20their%20footsteps%20because%20they%20aren%27t%20attending%20school

Wealth Distribution

Juraj Janosik (Slovak folk hero) https://www.slavorum.org/juraj-janosik-legendary-slovak-thief-turned-hero/

Phoolan Devi (‘Bandit Queen’ of India) https://www.britannica.com/biography/Phoolan-Devi https://medium.com/@mishra18tanvi/phoolan-devi-the-real-bandit-queen-of-india-2fb09b35d17f

Jose Mujica (eventual President of Uruguay) https://nationalinterest.org/commentary/jos%C3%A9-mujica-uruguays-robin-hood-guerrillas-9066

Kshama Sawant of Seattle - $15/hour minimum wage https://nymag.com/intelligencer/2014/05/kshama-sawant-seattle-socialist.html

nationalize Amazon https://theoutline.com/post/6587/nationalize-amazon-make-bezos-our-bitch?zd=1&zi=ys72jrku

60% of US wealth inherited https://evonomics.com/americans-get-rich-stay-rich/

peasants had to work 4 days a week unpaid for their landlord http://www.lordsandladies.org/serfs.htm#:~:text=The%20daily%20life%20of%20a%20serf%20was%20dictated,the%20lord%27s%20mill%2C%20and%20pay%20the%20customary%20charge.

Warren Buffett pays less in taxes than his secretary is identically unjust https://www.entrepreneur.com/article/338189

unnecessary toys… like 169 cars https://www.thethings.com/priciest-cars-jay-leno-owns-and-cheapest/

giraffes ($40,000 - $80,000) https://www.exoticanimalsforsale.net/giraffe-for-sale.asp

Asian Arowana fish ($300,000) https://nypost.com/2016/06/05/this-fish-is-worth-300000/

beach town has 147 homeless people https://www.latimes.com/socal/daily-pilot/news/story/2019-10-01/aliso-viejo-denounces-federal-judges-statement-alleging-it-dumped-homeless-in-laguna-beach-shelter

more wealth simply creates more want https://www.livescience.com/10881-global-study-money-buy-happiness.html

“Happiest Nations” https://www.forbes.com/sites/laurabegleybloom/2020/03/20/ranked-20-happiest-countries-2020/#29f843517850

#1 Finland the average CEO salary is $99,515 https://www.payscale.com/research/FI/Job=Chief_Executive_Officer_(CEO)/Salary

#18 USA it is $820,616 https://www.salary.com/research/salary/benchmark/chief-executive-officer-salary

per capita income - $17,110 - similar to China and Costa Rica https://www.worldometers.info/gdp/gdp-per-capita/

Open Borders - global wealth would elevate 50% - 150% https://openborders.info/utilitarian/#:~:text=Utilitarian%20justifications%20for%20open%20borders%20hinge%20on%20the,economic%20production%20%28see%20our%20double%20world%20GDP%20page%29

Reparations

Africans deserve reparations https://nehandaradio.com/2020/05/25/tafi-mhaka-europe-should-pay-reparations-for-colonising-africa/

India deserves reparations https://www.bbc.com/news/world-asia-india-33618621

Dalits (untouchables) deserve compensation https://indianexpress.com/article/opinion/columns/india-dalits-reservation-representation-suraj-yengde-6523483/

Armenians deserve reparations from Turks https://ahvalnews.com/armenians-turkey/turkey-may-face-reparation-demands-after-us-recognises-armenian-genocide-turkish

Greeks reparation from Germany https://breakingnewsturkey.com/world/greece-demands-germany-pays-war-reparations

Congolese reparations from Belgium https://www.africanexponent.com/post/9792-will-belgium-ever-apologize-to-drc-and-pay-reparations

South Africans reparations for apartheid https://www.egalitarianplanet.org/south-africa-reparations-for-aparthied

Native Americans reparations from European imperialists https://study.com/academy/lesson/native-american-reparations.html

Jamaica reparations from Britain https://moguldom.com/189262/jamaica-wants-britain-to-pay-billions-in-reparations-for-slavery/

South Korea reparations from Japan https://www.latimes.com/world-nation/story/2019-08-17/japan-korea-and-the-tquestion-of-how-to-pay-for-historic-wrongs

Vietnam reparations from the USA https://www.nytimes.com/2000/11/18/opinion/the-forgotten-debt-to-vietnam.html

Serbia reparations from NATO https://europediplomatic.com/2019/09/15/moscow-suggests-us-reparations-for-yugoslavia-bombings/

Haiti reparations from France https://www.jacobinmag.com/2017/01/haiti-reparations-france-slavery-colonialism-debt/

Land Reform

Cuba land reform https://cubaplatform.org/land-reform

South Korea land reform https://www.economist.com/asia/2017/10/12/for-asia-the-path-to-prosperity-starts-with-land-reform https://www.iol.co.za/capetimes/opinion/sa-could-model-its-land-reform-on-the-success-achieved-in-south-korea-10450729#:~:text=South%20Korea%E2%80%99s%20land%20reform%20is%20regarded%20as%20one,impact%20on%20agricultural%20productivity%2C%20which%20later%20sustained%20poverty-reduction

Guatemalan coup https://www.umbc.edu/che/tahlessons/pdf/historylabs/Guatemalan_Coup_student:RS01.pdf

Chilean coup https://foodfirst.org/publication/agrarian-reform-and-counter-reform-in-chile/

7.0 billion people divide Earth - 2.3 acres each https://foodfirst.org/publication/agrarian-reform-and-counter-reform-in-chile/

The Federal Land Dividend - Zoltan Istvan https://www.businessinsider.com/basic-income-with-federal-land-dividend-2017-7

Nationalization

Norway nationalization https://mg.co.za/article/2011-09-08-oil-together-now-nationalisation-lessons-from-norway/

Bolivia nationalization https://www.cfr.org/backgrounder/bolivias-nationalization-oil-and-gas https://www.reuters.com/article/us-bolivia-power-nationalization-idUSTRE64013020100501

Bolivia coup engineered by US for lithium https://www.aljazeera.com/news/2019/12/morales-claims-orchestrated-coup-tap-bolivia-lithium-191225053622809.html

Cuba nationalizes 36 US-owned sugar mills http://en.cubadebate.cu/news/2015/08/10/cuba-nationalizes-us-companies/

Chile nationalized copper https://www.chemeurope.com/en/encyclopedia/Chilean_nationalization_of_copper.html

Mexico and Venezuela nationalized oil https://www.yahoo.com/news/brazil-venezuela-mexico-three-ways-nationalize-oil-150004780.html

Pakistan nationalized steel mills https://www.egalitarianplanet.org/pakistans-nationalized-steel-mills

Quebec nationalized hydroelectric https://www.egalitarianplanet.org/hydro-qubec-why-nationalize-the-electricity-sector

Sri Lanka nationalized tea, rubber, and cocoa http://teasrilanka.org/history

Italy nationalized Italia airlines https://www.businessinsider.com/alitalia-nationalized-by-italy-history-2020-3

India nationalized banks https://www.oneindia.com/feature/full-list-of-nationalised-banks-in-india-2718000.html

Socialist Alternative wants the 500 biggest corporations in the USA to be publicly owned https://www.socialistalternative.org/about/

Apple workers in China work 60 hour weeks for low pay in unsafe conditions https://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/electronics/9174900/Apples-Chinese-staff-work-60-hours-a-week-independent-audit-finds.html

Taxation

US rich were taxed up to 91% in the 1950’s https://americansfortaxfairness.org/tax-fairness-briefing-booklet/fact-sheet-taxing-wealthy-americans/

Thomas Piketty “billionaires should be taxed out of existence” https://www.cnbc.com/2019/09/12/billionaires-should-be-taxed-out-of-existence-says-thomas-piketty.html

‘no billionaires’ - Bernie Sanders and Alexandria Ocasio-Cortez https://www.cnn.com/2019/09/24/politics/bernie-sanders-ultra-wealth-tax-billionaires/index.html https://dailycaller.com/2019/10/02/aoc-billionaires-should-not-exist/

$10 million - ‘never have to worry about money again.’ https://www.getrichslowly.org/is-10-million-enough/ 

Wages

Luxembourg minimum wage - $14.12 an hour https://www.worldatlas.com/articles/the-countries-with-the-highest-minimum-wages.html

USA 17 cities with at least $15/hour minimum wage https://time.com/3969977/minimum-wage/

vote in Switzerland 2013 failed, receiving 34.7% of the vote https://www.theguardian.com/world/2013/nov/24/switzerland-votes-against-cap-executive-pay

USA CEOs are paid 361 times more than workers https://popularresistance.org/why-are-ceos-paid-361-times-more-than-their-average-employees/

Universal Basic Income

UBI in Canada https://www.egalitarianplanet.org/mincone-experiment-in-dauphine-manitoba

UBI Namibia https://www.egalitarianplanet.org/ubi-in-nambia

UBI Finland https://basicincome.org/news/2019/04/finland-further-results-from-the-famous-finnish-ubi-experiment-published/

UBI Alaska https://www.egalitarianplanet.org/alaskaubi

UBI Stockton, California https://www.bloomberg.com/news/articles/2020-06-02/stockton-extends-its-universal-basic-income-pilot

UBI Martin Luther King Jr. https://www.egalitarianplanet.org/martin-luther-king-jr

UBI Richard Nixon https://www.jacobinmag.com/2016/05/richard-nixon-ubi-basic-income-welfare/

Libertarians UBI https://www.libertarianism.org/columns/libertarian-case-basic-income

UBI Spain https://www.businessinsider.com/spain-universal-basic-income-coronavirus-yang-ubi-permanent-first-europe-2020-4

UBI 20-30 USA cities https://www.economist.com/united-states/2020/08/08/universal-basic-income-gains-momentum-in-america

Corporate Sharing and Worker Power

Germany worker representation - 50% of the supervisory board of directors https://www.bloomberg.com/opinion/articles/2018-08-24/why-german-corporate-boards-include-workers-for-co-determination#:~:text=Wherever%20on%20that%20spectrum%20your%20views%20lie%2C%20it,or%20require%20some%20such%20form%20of%20employee%20%E2%80%9Cco-determination.%E2%80%9D

Amazon workers “treated like robots” https://www.theguardian.com/technology/2020/feb/05/amazon-workers-protest-unsafe-grueling-conditions-warehouse

Tesla accused of racial hostility and discrimination https://www.bloomberg.com/news/features/2018-04-12/tesla-workers-claim-racial-bias-and-abuse-at-electric-car-factory

Union benefits https://www.americanprogressaction.org/issues/economy/reports/2016/06/09/139074/unions-help-the-middle-class-no-matter-the-measure/

Communes and Cooperatives

Twin Oaks Intentional Community in Virginia https://www.twinoaks.org/

Hutterite colonies http://www.hutterites.org/

Kibbutzim https://www.jewishvirtuallibrary.org/history-and-overview-of-the-kibbutz-movement

collectives more productive than hierarchal companies https://cccd.coop/news/%EF%BB%BF-worker-cooperatives-are-more-productive-normal-companies

Spain 18,000 co-operatives https://www.theguardian.com/social-enterprise-network/2012/mar/12/cooperatives-spain-mondragon

Open Borders

Open Borders General Info https://openborders.info

Open Borders elevate global wealth 50% 150% https://openborders.info/double-world-gdp/

USA imports computer scientists   https://www.prb.org/usforeignbornstem/

Cubism inspired by West African masks https://www.pablopicasso.org/africanperiod.jsp

Pure Democracy

Abolish Anti-Democratic Institutions https://hankpellissier.com/sixteen-reforms-to-improve-usa-democracy

Ranked Choice Voting https://www.fairvote.org/rcvbenefits#:~:text=%20Benefits%20of%20Ranked%20Choice%20Voting%20%201,more%20voices%20are%20heard.%20Often%2C%20to...%20More%20

Superiority of the Parliamentary System https://lebassy.blogspot.com/2006/07/superiority-of-parliamentary-system.html

“Most Democratic Nations” https://worldpopulationreview.com/country-rankings/democracy-countries

Separatist and Secessionist groups https://en.wikipedia.org/wiki/Secession

24 states do not have Referendums and Initiatives https://ballotpedia.org/States_without_initiative_or_referendum

Switzerland and Ireland offer the most referendums in Europe https://inews.co.uk/news/long-reads/switzerland-held-9-referendums-already-2016-11727#:~:text=Switzerland%20has%20been%20holding%20referendums%20since%20the%2018th,to%20the%20polls%20more%20often%20than%20the%20UK.

Rojava Communalism https://itsgoingdown.org/the-communes-of-rojava-a-model-in-societal-self-direction/ https://politicalviolenceataglance.org/2020/08/20/the-two-faces-of-kurdistan/ https://roarmag.org/essays/communalism-bookchin-direct-democracy/

Murray Bookchin https://www.britannica.com/biography/Murray-Bookchin

Blood, Breastmilk, and Dirt: Silvia Federici and Feminist Materialism in International Law

By Miriam Bak McKenna

Republished from Legal Form: A Forum for Marxist Analysis of Law

If the politics of gender have been dragged front and centre into public discourse of late, this shift seems to have evaded international legal scholarship, or legal scholarship for that matter. Outside feminist literature, discussions of gender continue to be as welcome as a fart in a phonebox among broader academic circles. Unfortunately, Marxist and historical materialist scholarship fare little better. Despite periods in the 1960s and early 70s when their shared belief in the transformative potential of emancipatory politics flourished, Heidi Hartman had by 1979 assumed the mantle of academic marriage counselor, declaring that attempts to combine Marxist and feminist analysis had produced an “unhappy marriage”. [1] Women’s interests had been sidelined, she argued, so that “either we need a healthier marriage, or we need a divorce”. [2] Feminists pursued the latter option and the so-called “cultural turn”–a move coinciding with the move away from the “modernist” agenda of early second-wave feminism towards postmodern perspectives.

Not all feminists, however, took the cultural turn or wholeheartedly embraced postmodernism. Many continued to work within broadly materialist frameworks. Silvia Federici, known prominently for her advocacy of the 1970s Wages for Housework demand, continued the Marxist feminist momentum in her advocacy and scholarship by overseeing a revision or perhaps even reinvention of materialist feminism, especially in the United States. Federici’s work on social reproduction and gender and primitive accumulation, alongside a small but active group of materialist feminists (particularly Wally Seccombe, Maria Mies and Paddy Quick), brought a new energy to materialist feminism, making the capitalist exploitation of labour and the function of the wage in the creation of divisions within the working class (starting with the relation between women and men) a central question for anti-capitalist debate. Drawing on anti-colonial struggles and analyses to make visible the gendered and racialized dimensions of a global division of labour, Federici has sought to reveal the hierarchies and divisions engendered by a system that depends upon the devaluation of human activity and the exploitation of labour in its unpaid and low-paid dimensions in order to impose its rule.

In this post, I argue that Federici’s work offers a rich resource for redressing the conspicuous absence of a gendered perspective within academic scholarship on materialist approaches to international law. Materialist analyses of systematic inequalities within the international legal field are as relevant now as they ever were, yet the sidelining of gender and feminism within both traditional and new materialism has long been cause for concern. A gendered materialism in international law, which casts light on the logic of capitalist socialization and which affords the social reproductive sphere equal analytical status, allows us to access a clearer picture of the links between global and local exploitation at the intersections of gender, race, and nationality, and provides new conceptual tools to understand the emergence and function of international legal mechanisms as strategies of dominance, expansion, and accumulation.

A Brief Portrait of a Troubled Union

In 1903 the leading German SPD activist Clara Zetkin wrote: “[Marx’s] materialist concept of history has not supplied us with any ready-made formulas concerning the women’s question, yet it has done something much more important: It has given us the correct, unerring method to explore and comprehend that question.” [3] In many respects this statement still rings true. While Marxism supplied means for arguing that women’s subordination had a history, rather than being a permanent, natural, or inevitable feature of human relations, it was quickly criticized for marginalizing many feminist (and other intersectional) concerns. Feminist scholars in particular called attention to the failure of some forms of Marxism to address the non-economic causes of female subordination by reducing all social, political, cultural, and economic antagonisms to class, and the tendency among many traditional Marxist scholars to omit any significant discussions of race, gender, or sexuality from their work.

Marxist feminists (as well as critical race scholars and postcolonial theorists) have attempted to correct these omissions with varying degrees of success. The wave of radical feminist scholarship in the 1960s produced a number of theories of women’s domestic, sexual, reproductive, and cultural exploitation and subordination. Patriarchy (the “manifestation and institutionalization of male dominance over women and children in the family and the extension of male dominance over women in society in general” [4]) emerged as a key concept that unified broader dynamics of female subordination, while gender emerged as a technique of social control in the service of capitalist accumulation. Within this logic some proposed a “dual-system theory” wherein capitalism and patriarchy were distinct systems that coincided in the pre-industrial era to create the system of class and gender exploitation that characterizes the contemporary world. [5] Others developed a “single-system theory” in which patriarchy and capitalism “are not autonomous, nor even interconnected systems, but the same system”. [6]

During the 1970s, discussions turned in particular to the issue of women’s unpaid work within the home. The ensuing “domestic labour debate” sought to make women’s work in the home visible in Marxist terms, not as a private sphere opposed to or outside of capitalism but rather as a very specific link in the chain of production and accumulation. By exploring its strategic importance and its implications for the capitalist economy on a global scale, this analysis helped show that other forms of unpaid work, particularly by third world peasants and homeworkers, are an integral part of the international economy, central to the processes of capital accumulation. However, the Wages for Housework Campaign was criticized for failing to engage with broader social causes and effects of patriarchal oppression, as well as for essentializing and homogenizing the women it discussed. [7] These criticisms contributed to deep divisions between feminist thinkers on the left. A majority were to follow the lead of those like Hartman, arguing that Marx’s failure explicitly to examine domestic labour, coupled with the “sex-blind” analysis of most Marxist theorists, had prevented Marxism from adequately addressing women’s working conditions. Describing this period, Sue Ferguson noted that the “festering (and ultimately unresolved) issue” fueling socialist feminist thought was the place of Marxist analysis. [8] This shift, meanwhile, was overtaken by the cultural turn in social theory and the question of “how women are produced as a category” as the key to explaining their social subordination, in which materialist issues such as the debate over domestic labour were largely discarded. [9]

WWF: Wages, Witches, and Fanon

Among the Marxist feminist scholars who stayed the course during the broader scholarly shift towards structuralism, a small group of materialist feminists, including Silvia Federici, began to expand the debates over the relationship between patriarchy and capital by integrating the complexities of various forms of reproductive labour into their work. Led by such notable figures as Mariarosa Dalla Costa, Selma James, Leopoldina Fortunati, Maria Mies, Ariel Salleh, and Federici herself, their work on the sphere of social reproduction, which had largely been neglected in Marxist accounts, brought new energy to the materialist debate. In particular, responding to the above-mentioned critiques, they shifted their perspectives to develop situated accounts of the role of women in the global geopolitical economy that incorporated overlapping issues of imperialism, race, gender, class, and nationality.

The arc of Federici’s scholarship mirrors to a large extent the broader shifts within late-twentieth century Marxist feminism. Inspired to pursue a PhD in the United States after witnessing the limitations placed upon her mother, a 1950s housewife, her arrival coincided with an upswing of feminist activity in U.S. universities. Federici’s first publication, titled Wages Against Houseworkand released in 1975, situated itself within the domestic labour debate, drawing on Dalla Costa and James’ arguments that various forms of coerced labour (particularly non-capitalist forms) and generalized violence, particularly the sexual division of labour and unpaid work, play a central function in the process of capitalist accumulation. This structural dependence upon the unwaged labour of women, noted Maria Mies, meant that social reproduction is “structurally necessary super-exploitation”–exploitation to which all women are subjected, but which affects women of colour and women from the global South in particularly violent ways. [10]

In Wages Against Housework, Federici expanded these social reproduction insights into a theory of “value transfer”, focusing on the dependence of capital on invisible, devalued, and naturalized labour. Contrary to the prevailing ideology of capitalism, she argues, which largely depicts labour as waged, freely undertaken, and discrete, the reality is that–especially where women are concerned–labour is often coerced, constant, proliferating, and uncompensated. “We know that the working day for capital does not necessarily produce a paycheck and does not begin and end at the factory gates”, she explains together with Nicole Cox in “Counterplanning from the Kitchen”. [11] Capitalism infiltrates and becomes dependent upon the very realm that it constructs as separate: the private life of the individual outside of waged work.

Central to Federici’s thesis is the need to analyze capitalism from the perspective of both commodity production and social reproduction in order to expand beyond traditional spaces of labour exploitation and consider all of the spaces in which the conditions of labour are secured. As Federici argues in Caliban and the Witch, traditional Marxist categories are inadequate for understanding fully processes of primitive accumulation. [12] She notes that “the Marxian identification of capitalism with the advent of wage labor and the ‘free’ laborer…hide[s] and naturalize[s] the sphere of reproduction”, and further observes that “in order to understand the history of women’s transition from feudalism to capitalism, we must analyze the changes that capitalism has introduced in the process of social reproduction and, especially, the reproduction of labor power”. [13] Thus, “the reorganization of housework, family life, child-raising, sexuality, male-female relations, and the relation between production and reproduction” are not separate from the capitalist mode of organization, but rather central to it. [14] The conflation and blurring of the lines between the spaces of production of value (points of production) and the spaces for reproduction of labour power, between “social factory” and “private sphere”, work and non-work, which supports and maintains the means of production is illustrated through her analysis of the household. Housework, Federici declares (and I am sure many would agree here) is “the most pervasive manipulation, and the subtlest violence that capitalism has ever perpetrated against any section of the working class”. [15] Housework here is not merely domestic labour but its biological dimension (motherhood, sex, love), which is naturalized through domestic violence, rape, sexual assault, and most insidiously through “blackmail whereby our need to give and receive attention is turned against as a work duty”. [16] For Federici, the situation of “enslaved women … most explicitly reveals the truth of the logic of capitalist accumulation”. [17] “Capital”, she writes,

Has made and makes money off our cooking, smiling, fucking”. [18]

In Federici’s historical analysis of primitive accumulation and the logic of capitalist expansion, both race and gender assume a prominent position. For Federici, both social reproductive feminism and Marxist anticolonialism allow historical materialism to escape the traditional neglect of unwaged labour in the reproduction of the class relation and the structure of the commodity. As Ashley Bohrer has explored, Federici, like many other Italian Marxist feminists, has drawn explicitly on the work of post-colonial scholars, most prominently Frantz Fanon [19], in developing their theories of gendered oppression. [20] In the introduction to Revolution at Point Zero, Federici explains how she and others drew on Fanon’s heterodox economics in expanding their analyses beyond the scope of the traditional capitalist spaces:

It was through but also against the categories articulated by these [civil rights, student, and operaist/workerist] movements that our analysis of the “women’s question” turned into an analysis of housework as the crucial factor in the definition of the exploitation of women in capitalism … As best expressed in the works of Samir Amin, Andre Gunder Frank and Frantz Fanon, the anticolonial movement taught us to expand the Marxian analysis of unwaged labour beyond the confines of the factory and, therefore, to see the home and housework as the foundations of the factory system, rather than its “other”. From it we also learned to seek the protagonists of class struggle not only among the male industrial proletariat but, most importantly, among the enslaved, the colonized, the world of wageless workers marginalized by the annals of the communist tradition to whom we could now add the figure of the proletarian housewife, reconceptualized as the subject of the (re)production of the workforce. [21]

Just as Fanon recasts the colonial subject as the buttress for material expansion among European states, so Federici and others argue that women’s labour in the home creates the surplus value by which capitalism maintains its power. [22] Federici contends that this dependence, along with the accentuation of differences and hierarchies within the working classes for ensuring that reproduction of working populations continues without disruption, has been a mainstay of the development and expansion of capitalism over the last few centuries, as well as in state social policy. Colonization and patriarchy emerge in this optic as twin tools of (western, white, male) capital accumulation.

Expanding upon Fanon’s insights about the emergence of capitalism as a much more temporally and geographically extended process, Federici regards the transition as a centuries-long process encompassing not only the entirety of Europe but the New World as well, and entailing not only enclosures, land privatization, and the witch hunts, but also colonialism, the second serfdom, and slavery. In Caliban and the Witch, she presents a compelling case for the gendered nature of early primitive accumulation, by excavating the history of capital’s centuries-long attack on women and the body both within Europe and in its colonial margins. For Federici, the transition was “not simply an accumulation and concentration of exploitable workers and capital. It was also an accumulation of differences and divisions within the working class, whereby hierarchies built upon gender, as well as ‘race’ and age, became constitutive of class rule and the formation of the modern proletariat”. [23] According to Federici, the production of the female subject is the result of a historical shift of economic imperative (which was subsequently enforced by those who benefited from such economic arrangements), which set its focus on women, whose bodies were responsible for the reproduction of the working population. [24] The goal was to require a “transformation of the body into a work-machine, and the subjugation of women to the reproduction of the work-force” [25], and the means “was the destruction of the power of women which, in Europe as in America, was achieved through the extermination of the ‘witches’”. [26] The witch–commonly midwives or wise women, traditionally the depository of women’s reproductive knowledge and control [27]–were targeted precisely due to their reproductive control and other methods of resistance. The continued subjectification of women and the mechanization of their bodies, then, can be understood as an ongoing process of primitive accumulation, as it continues to adapt to changing economic and social imperatives.

While a rich and engaging tradition of feminist approaches to international law has emerged over the past few decades, it has shown a marked tendency to sideline the long and multifaceted tradition of feminist historical-materialist thought. Similarly, within both traditional and new materialist approaches to international law, there has been a conspicuous sidelining of gender and feminism, along with issues of race and ethnicity. The argument for historical materialism in the context of international legal studies is not, as some critics have claimed, that women’s oppression ought to be reduced to class. Rather, the argument is that women’s experiences only make sense in the explanatory context of the dynamics of particular modes of production. However, this requires an adequate theory of social relations, particularly of social production, reproduction, and oppression, in order to sustain a materialist analysis that “make[s] visible the various, overlapping forms of subjugation of women’s lives”. [28]

It is my contention that Federici’s social-reproductive and intersectional theory of capitalism provides a path toward a more nuanced and sustained critique of the logic and structure of capitalism within the international legal field. This approach foregrounds the social–that is, social structures, relations, and practices. But it does not reduce all social structures, relations, and practices to capitalism. Nor does it depict the social order as a seamless, monolithic entity. Moving beyond traditional class-reductionist variants of historical materialism, capitalism emerges here as one part of a complex and multifaceted system of domination in which patriarchy, racism, and imperialism are fundamental, constitutive elements, which interact in unpredictable and contradictory ways.

As Federici’s scholarship has stressed, the importance of foregrounding social reproduction as part of the dynamic of capitalist accumulation, as facilitated by states and international institutions, is essential to any materialist analysis, including one of the international legal field. This is necessary for exploring women’s specific forms of oppression under capitalism, particularly as they are facilitated by the family and the state. For example, Federici’s insights into the domain of unpaid social reproduction and care work are useful for understanding women’s subordinated incorporation into labour markets, especially in the global South and in states affected by structural adjustment. Indeed, while the state largely facilitates women’s entry into the workforce, their categorization as “secondary” workers–“naturally” suited to care work and the fulfillment of physical and emotional needs, and “naturally” dependent upon men–has continually been reproduced to the detriment of their labour situation. [29]

While Federici’s social reproduction theory begins with women’s work in the home, she demonstrates that capitalism’s structural dependence upon unwaged and reproductive labour extends to regimes of domination predicated upon social control on the global plane (from slavery through the exploitation of immigrant workers to the genocide of indigenous peoples). In her account of primitive accumulation, power relations sustained through the construction of categories of gender, race, sex, and sexuality facilitate the creation of subjects predicated upon capitalism’s systemic needs. While the heterosexual family unit is one of the more visible ways in which this domination is socially reproduced, the relationship, Federici argues, is reproduced in many settings. The transformations of the neoliberal era–particularly the global reorganization of work fueled by the drive to impose the commodity form in ways that seek to harness and exploit labour in its unpaid and low-paid dimensions–are characteristic of this dynamic. Federici has also emphasized the fact that domestic workers and service providers have consistently been devalued as workers. [30] In doing so, she highlights one of the rhetorical gaps in the contemporary feminist movement: when women enter the waged work-force, they often enter into an exploitative relationship with other women (and men) with less social power. It is the latter’s labour, bodies, and time that provide the means for access to better conditions within the labour market.

This relation of exploitation is also prevalent in neocolonial forms of exploitation–called “the new enclosures” by Federici–which ensure that the affluent North benefits from social and economic conditions prevailing in the global South (for example, through transnational corporations’ access to cheap land, mineral, and labour resources). Capitalism, Federici argues, depends not only on unwaged housework, but on a global strategy of underdevelopment in the global South, one that relies upon the stratification of and constructed division between otherwise common interests. “Wagelessness and underdevelopment”, she argues, “are essential elements of capitalist planning nationally and internationally. They are powerful means to make … us believe that our interests are different and contradictory.” [31]

Federici’s depiction of patriarchy, the state, and capitalism as interacting forces, together with her focus on relational, overlapping regimes of domination and their attendant systems of control, points the way toward a new way of understanding intertwined techniques and discourses of power in the international legal field. Capitalism’s reliance upon multiple types of exploitation, multiple forms of dispossession, and multiple kinds of subjects is visible in broader themes of international law. It is, for instance, visible in the overlapping dynamics of control that mark the history of colonial expansion, as well as the emergence in the nineteenth century of sovereign hierarchies and various legal mechanisms that ensure patterns of dominance, expansion, and accumulation in the international sphere.

An examination of the historical and contemporary role of international law in perpetuating these dynamics of oppression prompts us to address the specific processes whereby these categories are produced and reproduced in international law. Examples include norms surrounding marriage and the family, the production of the category of the temporary worker, and the illegal immigrant whose disenfranchisement is the necessary condition of their exploitation. Much the same can be said for trade, property, taxation policy, welfare and social security provision, inheritance rights, maternity benefits, and support for childcare (or the lack thereof). In the context of the gendered dynamics of globalization, we can examine the manner in which the devaluation of female labour has been facilitated by international institutions, notably the World Bank and International Monetary Fund, and through development initiatives such as micro-finance and poverty reduction strategies. Federici has also revealed the complicity of ostensibly neutral (and neutralizing) discourses such as development, especially when pursued with the stated objective of “female empowerment”, in glossing over the systemic nature of poverty and gendered oppression. These dynamics are ultimately predicated upon law’s power to create, sustain, and reproduce certain categories.

Usefully, Federici’s relational theory of subjectivity-formation also allows us to move beyond gender and race as fixed, stable categories, encouraging a new understanding that helps us detect more surreptitious gendered tropes and imaginaries in the structure of international legal practice and argumentation. One example is the set of narratives that surround humanitarian intervention. Indeed, as Konstantina Tzouvala has suggested, one of the glaring deficiencies in the socialist feminism proposed by B. S. Chimni is the absence of an explanation of how gender, race, class, and international law form an inter-related argumentative practice. [32]

Conclusion

Writing some ten years after David Schweickart lamented that analytical Marxism “remains a discourse of the brotherhood” [33], Iris Marion Young noted that,

[O]ur nascent historical research coupled with our feminist intuition tells us that the labor of women occupies a central place in any system of production, that the gender division is a basic axis of social structuration in all hitherto existing social formations, and that gender hierarchy serves as a pivotal element in most systems of social domination. If traditional Marxism has no theoretical place for such hypothesis, it is not merely an inadequate theory of women’s oppression, but also an inadequate theory of social relations, relations of production, and domination. [34]

Young’s defense of a “thoroughly feminist historical materialism” [35] is as relevant today as ever. While great in-roads have been made within materialist approaches to various disciplines, including international law, the continued tendency to marginalize issues of gender (along with issues of race and sexuality) greatly undermines the soundness of such critiques. In pointing to issues of social reproduction, racism, sexual control, servitude, imperialism, and control over women’s bodies and reproductive power in her account of primitive accumulation, Silvia Federici highlights issues that must occupy a prominent place in any materialist treatment of international law.

Miriam Bak McKenna is Postdoctoral Fellow and Lecturer in International Law at Lund University.

Notes

1. Heidi Hartman, “The Unhappy Marriage of Marxism and Feminism” [1979], in Lynn Sargent (ed.) Women and Revolution: The Unhappy Marriage of Marxism and Feminism–A Debate on Class and Patriarchy (London: Pluto, 1981) 1.

2. Ibid., 2.

3. Clara Zetkin, “What the Women Owe to Karl Marx” [1903], trans. Kai Shoenhals, in Frank Meklenburg and Manfred Stassen (eds) German Essays on Socialism in the Nineteenth Century (New York: Continuum, 1990) 237, at 237.

4. Gerda Lerner, The Creation of Patriarchy (New York: Oxford University Press, 1986), 239.

5. Pat Armstrong and Hugh Armstrong, “Class Is a Feminist Issue”, in Althea Prince, Susan Silvia-Wayne, and Christian Vernon (eds), Feminisms and Womanisms: A Women’s Studies Reader (Toronto: Women’s Press, 1986) 317. See, for example, Hartman, “Unhappy Marriage”; and also Sylvia Walby, Gender Segregation at Work (Milton Keynes: Open University Press, 1988).

6. See, for example, Lise Vogel, Marxism and the Oppression of Women: Toward a Unitary Theory (New Brunswick, NJ: Rutgers University Press, 1983); Iris Marion Young, “Beyond the Unhappy Marriage: A Critique of Dual Systems Theory”, in Lydia Sargent (ed.), Women and Revolution: A Discussion of the Unhappy Marriage of Marxism and Feminism (Boston: South End Press, 1981) 43.

7. See Angela Y. Davis, Women, Race, and Class (New York: Random House, 1981).

8. Sue Ferguson, “Building on the Strengths of the Socialist Feminist Tradition”, 25 (1999) Critical Sociology 1, at 2.

9. See, for example, Rosalind Coward and John Ellis, Language and Materialism (London: Routledge, 1977) and Juliet Mitchell, Psychoanalysis and Feminism (Harmondsworth: Penguin, 1975).

10. Maria Mies, Patriarchy and Accumulation on a World Scale: Women in the International Division of Labour, 1st edition (London: Zed Books, 1986).

11. Nicole Cox and Silvia Federici, Counterplanning from the Kitchen: Wages for Housework–A Perspective on Capital and the Left (Bristol: Falling Wall Press, 1975), 4.

12. Silvia Federici, Caliban and the Witch: Women, the Body and Primitive Accumulation (New York: Autonomedia, 2004), 8.

13. Ibid., 8–9.

14. Ibid., 9.

15. Silvia Federici, Revolution at Point Zero: Housework, Reproduction, and Feminist Struggle (Oakland: PM Press, 2012), 16.

16. Silvia Federici, Wages Against Housework (Bristol: Falling Wall Press, 1975), 20.

17. Federici, Caliban and the Witch, 89.

18. Federici, Wages Against Housework, 19.

19. Frantz Fanon, The Wretched of the Earth, trans. Richard Philcox (New York: Grove, 2004 [1961]).

20. Ashley Bohrer, “Fanon and Feminism”, 17 (2015) Interventions 378.

21. Federici, Revolution at Point Zero, 6–7 (original emphasis).

22. Ibid., 7.

23. Federici, Caliban and the Witch, 64 (original emphasis).

24. Ibid., 145.

25. Ibid., 63.

26. Ibid.

27. Ibid., 183.

28. Chandra Talpade Mohanthy, Feminism Without Borders: Decolonizing Theory, Practicing Solidarity (Durham: Duke University Press, 2003), 28.

29. Daniela Tepe-Belfrage, Jill Steans, et al., “The New Materialism: Re-Claiming a Debate from a Feminist Perspective”, 40 (2016) Capital & Class 305, at 324.

30. Silvia Federici, Revolution at Point Zero: Housework, Reproduction, and Feminist Struggle (Oakland: PM Press, 2012), 65–115.

31. Ibid., 36.

32. Konstantina Tzouvala, “Reading Chimni’s International Law and World Order: The Question of Feminism”, EJIL: Talk! (28 December 2017).

33. David Schweickart, “Book Review of John Roemer, Analytical Marxism“, 97 (1987) Ethics 869, at 870

34. Iris Marion Young, “Socialist Feminism and the Limits of the Dual Systems Theory”, in Rosemary Hennessy and Chrys Ingraham (eds), Materialist Feminism: A Reader in Class, Difference and Women’s Lives (New York: Routledge, 1997) 95, at 102.

35. Ibid (original emphasis).

Coronavirus Capitalism and the Neoliberal Crisis Playbook

Illustration by Ajay Mohanty

By Gaspar Zapata

While much of the ongoing global pandemic remains unpredictable, the response of the current administration suggests a future of violent economic insecurity, especially for the working class. Covid-19 has ushered in death and destruction as well an economic crisis the scale of which continues to expand. Unemployment figures are now double the levels of joblessness during the peak of the 2007-8 Great Recession and are only expected to rise. The basic needs of working people (food, shelter, healthcare) seem increasingly unattainable. An estimated one-third of tenants could not pay rent last month and an already weak social safety net means that the number of food insecure Americans is set to surpass 40 million. Yet, the U.S. is home to nearly half of the world’s high-net worth individuals.

This extraordinary wealth combined with generalized poverty is not by accident; it was historically created by decades of neoliberal policies that yielded socialism for the rich and predatory financial capitalism for the working class. The Trump administration will only intensify this social stratification if it continues along its current path.

Neoliberalism refers to a set of ideas, beliefs and practices that promote improving human well-being through individual freedom, free markets and free trade. Since the 1970s this utopian vision has served to justify attacks on organized labor and to build support for waves of corporate deregulation. It has also been used to legitimize the destruction of welfare programs. Reagan advanced neoliberalism by tapping into racist and sexist tales of “welfare queens” to rationalize cutting programs for the poor. Clinton did his part by deregulating banking and finance and thereby set the stage for the predation of middle- and low-income households during the sub-prime crisis twelve years ago.

Source: https://www.epi.org/publication/charting-wage-stagnation/

Gradually, workers have seen wages stagnate while the cost of living keeps rising. Overall economic productivity and GDP have risen but workers have not been given a fair share of this output. The rich, on the other hand, have enjoyed historically low tax bills. These trends have generated a “double squeeze” on workers where their livelihoods are being directly exploited through low-wage, insecure work while their social safety nets have eroded and their debts have accumulated.

For the past forty years government officials, corporate lobbyists, investment bankers, and free-market intellectuals armed with neoliberal ideas have led us into a world of grave inequality, mass incarceration and what Ruth Wilson Gilmore has called organized abandonment. They have designed a political-economic system where the richest 1% own half of the wealth in the world and where the rest of us are saddled with trillions of dollars in student and credit card debt because our wages our low and our benefits practically non-existent.

During times of crisis the internal contradictions of this system become glaringly clear, but leaders dogmatically continue to apply the same inadequate solutions.

In 2008 we witnessed the neoliberal crisis playbook in action as Congress authorized billions upon billions of relief funds to rescue a collapsing financial sector. In a strategy consistent with neoliberal philosophy, experts and politicians made the protection of troubled markets their top priority. What we must remember, however, is that “markets” are people; they are ordinary borrowers and workers but also CEOs, top executives and elite investors.

Source: https://www.federalreserve.gov/econres/notes/feds-notes/asset-ownership-and-the-uneven-recovery-from-the-great-recession-20180913.htm

When the Great Recession was said and done, distressed working-class homeowners saw only an insignificant slither of those relief funds. It should be no shock, then, that the only income group who gained wealth since the crash has been the top ten percent income bracket. To say that “we” have recovered from the subprime crash is misleading. Only the very wealthy recovered; the rest of us are struggling to keep up.

Covid-19 is revealing the persistence of neoliberal thinking and the colossal failures of our present and past political leadership. In this cruel historical drama politicians have embraced neoliberal solutions to solve social problems created by decades of neoliberal policies to begin with. The Coronavirus Aid, Relief, and Economic Security (CARES) Act is more of the same.

A provision in the CARES Act includes a potential $1.7 million tax break for high-earning individuals, or an estimated 43,000 U.S. taxpayers. Individuals with annual incomes below $75,000 will only receive a one-time $1,200 stimulus check. For those most in need of immediate relief the stimulus check pales in comparison to the relief being offered to the millionaire class. Moreover, the billions potentially lost through these tax breaks could be used to support hospitals, schools and other social services.

The Trump administration is fiercely embracing neoliberal solutions to the pandemic, even using it to deregulate environmental protections. This approach has not and will not work. The global pandemic and its aftermath will not be solved by extending aid to the rich while leaving the rest of us vulnerable to the brutal cycles of finance capitalism. It is already worsening food insecurity for working families and disproportionately claiming Black, Indigenous and Latinx lives. It will require bold actions like nation-wide rent strikes and pro-worker legislation like the proposal for a rent and mortgage freeze and the bill proposed to forgive student debt. Finding a way out of our shared predicament requires waging a united struggle against the murderous system which threatens our collective well-being.

All power to the people!

Political Automatons and the Politics of Automation

By Bryant William Sculos

What's in a Meme?

While it would be easy to exaggerate the significance of any meme shared on social media, it is widely acknowledged that memes are inherently limited and simplistic. But their value in conveying important political messages is also clear-especially through sarcasm and irony. One need only spend a few seconds on social media to see the creative energy that people put into making and sharing these often-captioned images across various digital platforms. With that said, I came across this meme below (shared in a number of Facebook groups), and it seems like a useful starting point for a discussion about its central claims regarding political-economic change and the overall goals of such change. The meme's central argument (insofar as we can say a meme has an argument) is that consumers should not use the increasingly prevalent self-checkout lines at grocery stores, because the more they are used the fewer people the company will hire to work as cashiers and baggers. If consumers make the ostensibly simple choice to not use these lines and instead use the lines with human cashiers, grocery stores will not only stop installing these automated checkout lines and will even remove the ones they have already put in place-hiring more cashiers to work the in-person lanes that would be needed to service the customers once the automated systems are replaced.

Given the dire life circumstances that unemployment can cause, especially for previously underemployed, low-wage workers, the goal of struggling for more jobs for people is a noble one. However, this essay will show how that goal, as articulated in the context of a grocery store-and in society more broadly-is misguided, rooted in problematic assumptions about capitalism and transformational change, and is ultimately ineffective and an inefficient use of political energy. The core misunderstandings that produce the argument of this meme are two-fold: 1. individual consumer choices are an effective means of resisting the devastating consequences of capitalism (e.g., automation-induced unemployment), and 2. That resisting automation is productive goal.

There is an automated character to these modes of thinking, a kind of superficial intuitiveness that if we (each as individuals) simply behave differently the forces of the market will adjust to the implications of those choices in aggregate-as if neither the forces of the market (of capitalism) were to blame nor the individual choices difficult to make. Politics is not primarily about our individual daily choices. In fact, the least positive political thing you can do is act on your own. This is the liberal-influenced ideology, ensconced in capitalistic assumptions about society and human nature, that "individual choices matter"-and matter more than collective choices. In fact, liberalism doesn't even have the theoretical architecture to think through the concept of collective choices. Neither does capitalism. Aggregating individuals is all they can do. Socialist political praxis-rooted in democratic, egalitarian solidarity- on the other hand, knows better.

Your Choice Doesn't Matter, But Ours Do

In the 1960s, we saw a number of direct-action campaigns utilizing tactics like sit-ins and occupations to fight against segregation, the Vietnam War, and even capitalism itself. While these actions were taken by consumers of a certain kind, it was not primarily as consumers that these actions were conducted. Thinking about student protests specifically, students are often-and increasingly-treated as consumers within more contemporary neoliberal capitalism, but it is worth remembering that this conception of the student-as-customer is relatively new. Despite historically (and too often still being) bastions of elitism, too often excluding the poor and people of color, college campuses in the 60s were communities of radical dissent, often engaging positively with local communities, with people coming together to enhance their political power through collective action as affected (and effected) human beings with moral and practical interest in challenging violence, exploitation, oppression, and antidemocratic politics. They were not exercising political power rooted in "consumer choice."

We see similar, seemingly automatic, consumer-choice arguments made by left-liberal environmentalists. We are encouraged to recycle, to "shop Green," to use reusable bags, to use energy-efficient light bulbs and appliances. But in a world where something like 100 companies account for approximately 75% of carbon emissions and pollution more broadly, I can assure you that what kind of lightbulb you use could not matter less. You could burn all of your recycling daily in a tire pit using 1950s hairspray as an accelerant and it wouldn't matter in the slightest compared to the ecological footprint of just the US military (the single greatest ecologically-criminal entity in human history). We need collective, solidaristic, organized solutions on a massive scale to make a dent in the ecological damage wrought by centuries of extractive capitalism. In other words, fuck your lightbulbs. The planet's biosphere is dying. Maybe, just maybe, it's time to think outside of our individual consumer choices. Choose organized resistance, not Starbucks' Ethos Water.

Marches, protests, occupations, organizational meetings, public talks and discussions, sit-ins, and strikes, on the other hand, are all forms of collective political action that tend to speak better to the depth of the systemic forces that need to be resisted and superseded. They tend to be more effective at rejecting the forces of exploitation and oppression that drive our societies in the contemporary period, because they do not reinforce the underlying logic of automated consumerism produced through manipulative marketing and advertising, themselves driven by the profit-motive. It is not the choice of product on which you spend your almighty dollars that expresses your political power, but instead it is your capacity to act in concert with others. One of these conceptions of politics challenges the status quo-but the other conception is the status quo.

Thinking back to the meme that started this piece, the implied activism here is undergirded by a false alternative: I can either use the self-checkout line or use the human-clerk line. That is all. What should I do? What is the best political decision? First, it is useful to accept the fact that despite this decision taking place within a highly politicized context, in general, this decision is politically irrelevant. The structures involved are deeply political. We may feel that the appearance of our decision is reflective of a certain perceived set of political commitments-but compared to the political character of the political-economic structures that shape the circumstances where we feel like there might be important political consequences of one choice or another-or simply the fact that we have those two choices-the actual choice we make is functionally irrelevant. In aggregate, which is what I take this meme to be expressing, if customers stopped using the self-checkout lines, supermarkets would indeed stop expanding their use; they may even remove some of the ones they've already installed and hire more human cashiers, but given the enormity of the systemic evils we face, we should be thinking much bigger, broader, and deeper about our politics.

Given the degree of forces levelled against us, the severity of the problems we face, and the time and effort and general difficulty of collective action and organizing, it is too easy to think well at least I'm doing something. The problem is, after a long day or week or month or year of alienating labor, raising children, filling out memos, whatever wears you out, it is easy forat least I'm doing my part to become, I'll try again tomorrow. Our political engagement, our reflective capacities are increasingly automated. Like the automated checkout lines, we are (re)produced as (de)politicized subjects with little sense of any activity other than what we've been programmed-conditioned over years and years-to think. My individual choices matter. And, in fairness, to some degree they absolutely do, but some choices matter more than others.

Which choice matters more here: the decision as to which checkout line I should use, or the decision to get involved in a political organization or local social movement? Again, there is a false alternative here. You can do both, but if you're only going to do one, it should be clear that because of the depth of the structures of exploitation and oppression most people face daily, the latter choice-and the content of that choice-is the choice that really matters. It is a choice that, if made in the affirmative (and the choice is made to get involved in an organization that is socialist, anti-imperialist, pro-worker, anti-racist, anti-sexist, etc.), the choice automatically challenges the programmed automated political (un)thinking that is predominant in our society. Building solidarity in collective struggles with others directly challenges the automated, one dimensional, pathological (anti)politics of individualized consumer choice-oriented slacktivism.

With that criticism laid out, it is worth noting that collective consumer-side actions can be effective in short-term, limited circumstances. They can be a productive dimension of a broader strategy which utilizes a variety of tactics. One of the most historically significant examples of this is the Montgomery Bus Boycott. While it was certainly an exceptional example of collective consumer action rooted not in the ideology of individual choices. A boycott is not an individual act, so, if we give the meme a more charitable reading, we could interpret it as a call for collective action against self-checkout lines. Again, that isn't made clear in the meme explicitly, but it still leaves open the broader question of the limitations of consumer actions, even when done collectively, but it also leaves open the issue of whether resisting automation is a good idea for those interested in progressive or socialist political-economic change.

A Robot Could Do Your Job (and It Should)

As for this second dimension of the meme, the opposition to automation itself, I want to suggest here, in line with what has been argued elsewhere by Peter Frase, Nick Srnicek, and Alex Williams, that automation-done democratically and equitably-is a process that we should support. There are, quite simply, jobs, where if there is an opportunity to make them not exist, that is precisely what should be done. Where is the expression of humanity in being a cashier or bagger? In what ways, other than simply engaging in casual sixty-second conversations with customers, do people employed in these kinds of professions express their humanity in any significant way? I want to be clear; I'm not criticizing the people who, for whatever reasons, do these jobs. I'm criticizing the existence of these jobs as such.

Who should feel compelled to clean piss or shit off bathroom walls in order to make some more money to pay for basic human needs, such as: healthy, nutritious food; safe, clean housing; and/or quality health care? Who should feel compelled to pick strawberries or lettuce in 100-degree heat? Who should feel compelled to install roofing in the scorching sunlight day after day? There is nothing wrong with manual labor per se, and certainly many people would prefer it to sitting in a cubical for eight hours per day, but the problem with any of these options is that none are typically chosen freely. Very few people, if any, would actively choose to undertake the most revolting, dangerous, uninteresting, and socially-unrewarding jobs if it weren't for the lack of better alternatives, if it weren't for the fact that freely chosen labor is barely a mythology in our societies (in that we can hardly even fantasize about it).

In an automated political economy, there will be plenty of creative, hands-on, salt-of-the-earth jobs to do. There will also be plenty of time for other, perhaps a bit more sedentary, creative, and productive activities for those of us who are less callously-inclined. The point is that automation driven by democratically-organized movements of working people, everyday people, the 99%, is the best way to make freely-chosen productive, humane labor thinkable again.

Automation in and of itself is neither a positive nor a negative. At its worst, automation deskills jobs so that the cognitive engagement and technical know-how needed to do the job decreases. Sometimes whole job categories disappear. All the while, companies continue to rake in record-breaking profits. These are the very real, if still exaggerated, fears that underlie this meme.

History need not go in that direction though. We can have an automation that increases quality of life for all people. In order for automation to have the liberatory effects that the above meme eschews, there would need to be a corollary supplement in the form of a universal basic income and/or shorter workweeks or job-share programs with no loss in pay - but it is highly unlikely either of those options would be achievable without the kind of mass organized political action that the individualized, automated politics of consumer choice activism undermines.

Automation-only when combined with genuinely democratized workplaces, companies, homes, towns, cities, states, and countries-can set us on a path of increased freedom for all people. Put simply, we want our shitty jobs automated, not our capacities for creative, collective activity. We want to automate toil, not politics. And it is always worth remembering: automation isn't the enemy of working people, their bosses are.

Bryant William Sculos holds a PhD in political theory and international relations. He is currently a postdoctoral fellow at The Amherst Program in Critical Theory, contributing writer for the Hampton Institute, and Politics of Culture section editor for Class, Race and Corporate Power. His other work has been published with a variety of academic and non-academic outlets, including: Constellations, New Political Science, Public Seminar, Truthout, Dissident Voice, and New Politics. His most recent article "Minding the Gap: Marxian Reflections on the Transition from Capitalism to Postcapitalism" is in the May 2018 special issue of tripleC commemorating the 200th anniversary of the birth of Karl Marx. Bryant is also a member of Socialist Alternative-CWI in the US.

Debt, Underemployment, and Capitalism: The Rise of Twenty-First-Century Serfdom

By Cherise Charleswell and Colin Jenkins

Systemic contradictions of capitalism have only intensified in the neoliberal era. Structural unemployment, a phenomenon directly related to capitalist modes of production, has continued unabated, creating a massive and ever-growing "reserve army of labor" that has been disenfranchised on an unprecedented scale.

Working classes, en masse, have been corralled into legalized systems of education debt with false promises of "middle-class" lifestyles, only to be tossed into a job market that can no longer keep up with the system's inherent deficits and inability to provide a living wage to the masses. Massive inequality and unprecedented wealth accumulation and concentration have paralleled uncontrollable costs of living and widespread housing insecurity for the working-class majority.

The twentieth-century liberal experiment has failed, bringing down with it the delusional hopes of constructing a manageable and benevolent form of capitalism. The ripple effects of capitalism's structural failures, intensified by modern forms of government-facilitated debt slavery, job markets that can no longer keep pace with wage demands, and interrelated housing insecurity and displacement, have pushed us into a twenty-first-century serfdom. We are left wondering how long this balancing act can last.

Capitalism and Underemployment

Unemployment is not a natural occurrence within society. It is a purely capitalist problem that arises from artificial economic arrangements, most notably the advent of wage labor, which forces people to serve as commodities. This is an important point that is often missed, especially in regards to modern assessments of the labor market and popular reports that focus on the fiction of an unemployment rate. In the United States, since the 1950s, the official unemployment rate has fluctuated between 4.4 percent and 10 percent.1 Full employment in a capitalist system is neither possible (without government intervention) nor desirable to capitalists or those who benefit from the system. Rather, substantial and perpetual unemployment is both a byproduct of the system's relational mechanisms and a necessity that serves a systemic purpose in regards to profitability and wage reduction (or stagnation). The never-ending search for profit by those who have access to capital, and the means to reproduce it, places those who must sell their labor power to survive in a perpetual state of insecurity. Other than the fundamental extraction of profit through the labor process (surplus value), the most basic method in regenerating profit comes from replacing variable capital (living labor) with fixed capital (machines), a relationship that Marx referred to as the "organic composition of capital."2 While the process of creating surplus labor value consists of paying wages that equal a fraction of the value created, the process of increasing productive capacities through the implementation of machinery leaves living labor in an even more precarious situation. This process leads to the creation of what Marx referred to as the "Industrial Reserve Army" (the unemployed)-a phenomenon that becomes both a byproduct and a leveraging tool within the capitalist system.

Attempts to circumvent capitalism's tendency to create and maintain high amounts of unemployment and underemployment have been carried out by industrialized capitalist societies utilizing Keynesian economic programs. By calling on a high degree of governmental involvement in the economic system vis-à-vis taxation and supplementation, John Maynard Keynes believed that structural problems like "involuntary unemployment" could be remedied. 3 When coupled with the post-World War II economic boom in the United States, Keynesian techniques appeared to make positive steps towards remedying structural unemployment. Between 1948 and 1970, the official unemployment rate in the United States was relatively low by historic measures, typically fluctuating between 3 and 5 percent, and falling below 3 percent on a few occasions during the 1950s.4 The marginal tax rate during this time-also a byproduct of Keynesian thought-was a major factor in the economic success experienced by much of the U.S. population, including the white working class in its ascent to "middle class" status, and also helped create historically low unemployment rates. From 1948 to 1963, the top marginal tax rate remained at 91 percent, with the exception of 1952 and 1953 when it was raised to 92 percent.5 In 1964, this top rate was lowered to 77 percent, and from 1965 into the 1970s, it was set at 70 percent.6

The Keynesian experiment came to an end in the 1980s, when neoliberalism took form as a class project. Coupled with the phenomenon of globalization, which fused formerly industrialized labor markets (unionized with living wages) in the global core with formerly colonized labor markets in the global periphery, underemployment has become an epidemic with disastrous effects. Marx warned of such developments when writing, "The need of a constantly expanding market for its products chases the bourgeoisie over the entire surface of the globe. … It must nestle everywhere, settle everywhere, and establish connections everywhere."7 The global consequence of this constant pursuit of profit is not only the establishment of new markets of consumers and laborers, but also the proliferation of imperialism. For the former industrialized working classes, such as in the United States, it means an intensification of capitalist mechanisms that create unemployment and underemployment. Because of this, the replacement of manufacturing jobs by low-wage service sector jobs has become a distinguishing characteristic of American capitalism since the 1980s. Government involvement in this system has become a necessity, not for the purpose of obstructing it (as many right-wing critics claim), but for the purpose of supplementing it and propping it up via infusions of money and for maintaining the minimum of social welfare programs. The former can be seen in the increased importance of the Federal Reserve and monetarism (including the practice of quantitative easing), while the latter can be seen in the working class's increased reliance on things like food stamps-a direct result of the disappearance of living wages.

The type of government involvement that became common in the 1980s was nothing like its Keynesian predecessor. Rather than seeking public programs and fiscal policies that created jobs, neoliberal intervention seeks to supplement profit accumulation for those at the top of the socio-economic ladder. This is carried out with mantras like "getting government off our backs," lowering taxes for so-called "job creators," and even blatantly allowing for massive profits to be justified under a promise of such money "trickling down" to the masses. As neoliberalism represents an intensification of capitalism, not only through the dismantling of Keynesian-style interventions but also through a 180-degree reversal in using government to supplement the capitalists rather than the workers, the neoliberal era has brought on a uniquely precarious existence for the working class in the United States. Thomas Palley explains:

Before 1980, economic policy was designed to achieve full employment, and the economy was characterized by a system in which wages grew with productivity. This configuration created a virtuous circle of growth. Rising wages meant robust aggregate demand, which contributed to full employment. Full employment in turn provided an incentive to invest, which raised productivity, thereby supporting higher wages.

After 1980, with the advent of the neoliberal growth model, the commitment to full employment was abandoned as inflationary, with the result that the link between productivity growth and wages was severed. In place of wage growth as the engine of demand growth, the new model substituted borrowing and asset price inflation. Adherents of the neoliberal orthodoxy made controlling inflation their primary policy concern, and set about attacking unions, the minimum wage, and other worker protections.8

The culmination of the disastrous neoliberal measures that began in the 1980s was realized with what has been labeled the Great Recession of 2008, whose effects are only starting to be fully understood nearly seven years later. Some alarming statistics should be emphasized: Between 2008 and 2014, the U.S. labor market lost a total of 1.4 million full-time jobs; more than 20 percent of workers who were laid off as a result of the Great Recession still have not found a new job; when considering those workers who have given up looking for employment, the unemployment rate is closer to 12 percent; of all "prime-age workers" (ages 25 to 54) in the United States, 23.3 percent were "not employed" as of November of 2014.9

A January 2014 study conducted by Heidi Shierholz of the Economic Policy Institute, entitled, "Is There Really a Shortage of Skilled Workers?" countered a popular argument presented by the mainstream analysis, which claimed there was a shortage of qualified workers to fill so-called "skilled" positions. 10Fred Goldstein, writing on Shierholz' research, said,

The study found that no matter what the skill level of workers, their unemployment rate went up by 150 percent to 190 percent from 2007 to 2013. The unemployment rate for workers with less than high school education was 10.3 percent in 2007 and 15.9 percent in 2013. For high school graduates, the unemployment rate was 5.4 percent in 2007 and 9.6 percent in 2013. For workers with some college, the unemployment figures jumped dramatically from 4.0 percent in 2007 to 7.3 percent in 2013; for college graduates, it went up from 2.4 percent to 4.5 percent and for those with advanced degrees, it went from 1.7 percent to 3.2 percent, that is, almost double.11

This highlights perhaps the most alarming effect of the recession, which has been a mass replacement of living-wage jobs with low-wage jobs in the service sector. In sectors that experienced severe job losses during the Great Recession, workers were earning 23 percent less in 2014. In manufacturing and construction, the average salary fell from $61,637 in 2008 to $41,171 in 2014. The jobs that have been added during the "recovery" (2009-2014) have been largely low wage, confirmed by the fact that $93 billion in "lower wage income" has been created during this time period.12

Toward Twenty-First-Century Serfdom: Debt, Student Loans, and Rising Costs of Living

The net result of prolonged and skyrocketing unemployment and underemployment and the increasing stagnation of wages is the mounting epidemic of debt. Debt, in the form of medical bills, housing costs, and ballooning mortgage payments, has contributed to people having to file for bankruptcy as well as finding themselves homeless.13 This new-age form of debt has effectively divided the United States into an income-bound set of castes, the "Haves" and "Have Nots." The awakening to this unequal balance of wealth and debt set the stage for the Occupy Movement uprisings, which spread globally and advocated on behalf of the 99 percent, the workers who collectively hold much less economic wealth than the richest 1 percent. In real terms, according to the IRS, those who belong to the lower 99 percent of U.S. income distribution are those with a household adjusted gross income of less than $343,927. This valuation not only illustrates how wealthy the 1 percent must be, but it also speaks to the fact that there is still much socio-economic stratification within the 99 percent, including differences in the likelihood of financial hardship and debt.14 While the outsourcing of jobs has greatly contributed to unemployment, those who are lucky enough to still have a job are finding themselves working long hours or having to work multiple jobs to make ends meet. Despite the noted rise in hours worked, which should logically translate into higher annual incomes, Americans are finding themselves falling into debt at unprecedented rates.15

All of this has helped to give rise to what can only be referred to as a twenty-first-century serfdom. An example of the indebted economy is the fact that mergers, monopolies, and concentrations of influence have created the present reality of workers finding themselves employed by, and simultaneously indebted to, the same corporate entities. The "pay" that is earned is immediately shuffled back to these corporations in the form of student loan payments, mortgage payments, cable payments, health insurance premiums, and so on. The feasibility of paying off these employer/debt-holding entities in a timely matter, or at all, is difficult or nearly impossible, especially when considering that they are the very ones who set and keep wages low and transfer the profit from workers' increased productivity to the pockets of CEOs, investors, shareholders, bankers, and so on.

Debt is a Byproduct of Capitalism

Within this current era of unchecked capitalism, where citizens must take to the streets in protest to persuade the government to intervene and create policies that will support a living wage or protect workers' rights, debt and inequality are the most recognizable and predictable byproducts. The process of financialization, which began in the 1970s, depends on widespread loosening of banking regulations, environmental laws, and labor laws. Inequality is inherent in capitalism due to its concentrating of wealth in the hands of the few, in the form of monopolies and by the exploitation and maximizing of profits at the expense of, or through the labor of, the masses-the twenty-first-century serfs. Neoliberal capitalism has allowed for unprecedented concentrations of not only wealth, but power, creating a landscape where the wealthy are modern representations of feudal lords. As in feudal societies, it is the pauper (serf) who pays the biggest percentage of taxes (or dues for land usage in the case of serfs), and this is even true under Democrat-led administrations in the United States. Just consider the fact that corporate taxes decreased from 25 percent during the Bush Administration to 12 percent under Obama, while workers' tax rates remained the same or increased.16

The Student-Loan Debt Crisis

The biggest driver for debt in the past twenty-five years has been the rising cost of tuition and student-loan debt. This debt crisis may eventually represent the proverbial "final straw that breaks the camel's back," as there do not seem to be any plans for immediate relief. Instead, politicians spend election seasons making false promises and arguments in favor of student debt relief, but do not offer any concrete measures to bring this into fruition. Further, those outside of socialist and progressive movements remain ignorant of, or will not be honest about, the fact that capitalism is structured to produce exploitation, concentrated wealth and profitability, and debt. Capitalism's constant pursuit of profit has led to the transformation of higher education into a no-holds-barred profit-seeking venture. This process can be summed up as follows: Colleges and universities are using decades of cutbacks in state and federal funding for higher education to justify massive increases in tuition, the proliferation of adjunct professor positions, and budget cuts to educational and other services upon which students depend. A 2008 study published by the Center on Budget and Policy Priorities made headlines when it shared that on average states are spending $1,805, or 20 percent, less per student than before the recession; some states, such as Alabama, Louisiana, Pennsylvania, and South Carolina, which are for the most part states where there is a Republican stronghold, have slashed their higher education funding by more than 35 percent since 2008, and they are topped by Arizona with a decrease of 47 percent.17 Back in 1988, in the not so long ago past, public colleges and universities received 3.2 times as much revenue from state and local governments as they did from students.18 This simply means that the student did not carry the bulk of the burden to finance higher education, which was instead paid for by public dollars, collectively sharing these costs.

As wages go down, the cost of tuition continues to climb, leaving behind an educated populace that is saddled with debt. Tuition jumped 28 percent between the 2008-2009 and the 2013-2014 school years, while real median income fell by approximately 8 percent over this period. To understand the bigger picture, consider that since 1973 average inflation-adjusted college tuition cost has more than tripled-an increase of 270 percent-but median household income has barely changed and is up by only 5 percent;19 this represents the core of the crisis. What are graduates to do? How are they to survive and afford their most basic needs while working low-paying jobs and still being forced to pay back a student loan that they cannot even write off in bankruptcy, like the corporations and banks do with their debts?

There is no greater evidence of the burden of student-loan debt than the accounting of loans that have fallen into delinquency. The Federal Reserve Bank of New York released a 2015 report that shared that delinquent student loans (those whose payments are 90 days or more past due) increased to 11.5 percent of the $1.9 trillion (yes trillion!) in education loans.

Essentially, the burden of financing the exorbitant costs of education has been passed on to the students, and the high cost with dwindling returns (where are the higher-paying jobs?) has begun to discourage would-be college-goers, a process that is equally by design. Higher education was once looked on as a means to develop a cultured, well-rounded, and informed citizenry. However, this is no longer the case, since cultivation of thinkers would only lead to questioning of the prevailing system of inequality. The Great Society programs that gained steam in the 1960s set out to make sure that students who could not otherwise attend college could do so, without the burden of having to work excessive hours to help cover the cost of education. In fact, at one time students could actually use their summer vacations to "work their way through college," something that is now impossible. In the current landscape, students are forced to take out mortgage-sized loans from financial lenders who are profit-driven corporations and who inevitably put their bottom lines before the needs and best interests of students.

This student-loan crisis has ensured that the last two generations are worse off than were their parents, ending the historical progression of improvements in the quality of life with each subsequent generation. Over a lifetime of employment and saving, someone with $53,000 in education debt can expect nearly $208,000 less wealth than a similarly educated person without debt.20 Crippled by this debt and entering a job market with lower and stagnant wages, graduates, who were sold the falsehood of the American Dream, are unable to afford the lifestyles that their parents and grandparents once enjoyed. Dispensable income is becoming a scarcity, while more money is being spent to cover the rising costs of food, health care, transportation, clothing, and housing. With this reality the feudal lords, the wealthy 1 percent, are gaining exponential profits through this multi-dimensional exploitation of the working class.

Conclusion

The proliferation of the capitalist system through the neoliberal era has resulted in a modern form of feudal society where there is great inequality and wealth is concentrated among the few. Policy changes, and perhaps a restructuring or change in the current systems of governance, are needed, but this will largely depend on the actions of the working-class majority: the growing number of impoverished, overworked, unemployed, or underemployed serfs whose labor and bodies are being exploited and who have been left wholly disenfranchised.

Despite the need for mass action, it has yet to materialize. Despite dire circumstances, there remains a great reluctance to challenge the status quo of inequality. This stems from the fact that far too many are still hopelessly reliant on the illusion of the American Dream, believe in the falsehood of rugged individualism, or merely fear the prospects of instability and the unknown. The motivation for revolutionary change exists throughout, yet many fundamental questions remain unanswered. Some may not have an answer until steps are taken. For instance, if the current system of government-which has become no more than a "dollarocracy"21 that does not represent or even consider the views or needs of the working-class majority-is overthrown, what would happen next? Fears of the unknown persist and are perpetuated by corporate-sponsored media, which thrives on the sensationalism of doomsday reporting, ignoring the fact that fluctuations in the stock market and other macroeconomic indicators are far removed from the daily lives of many who actually work for a living.

Despite this widespread reluctance and fear that has been peddled to the majority, action is needed. Addressing debt is an immediate concern. Action does not need to be instantly revolutionary, but may be accomplished through gradual steps and reformist means. Some steps include:

• Continue building movements around issues of debt, unemployment, and inequality-movements that are multi-racial, multi-ethnic, and multi-generational. An intersectional approach to such movements will effectively attack the divisions that have been artificially created to ensure that the status quo continues. Examples of this division are most visible throughout the impoverished states of the U.S. South, which despite having vast income inequality and being susceptible to corporate exploitation, also happen to possess high rates of historical, intra-working-class, racial animosity. Hate, fear, and ignorance cause many to vote and act against their own interest.

• Get behind efforts that are working to remove moneyed influence over the U.S. political system; some of that influence comes through the Citizens United Supreme Court ruling that has the audacity to state that corporations are people. Be ready to accept that the entire system itself may need to be dismantled.

• Demand that the federal government gives us a New Deal that can address the problems of unemployment and the crumbling infrastructure. Bridges and highways need to be repaired, and high-speed rail needs to be laid out.

• Join and support unions, which are under assault, because they are the only stakeholder who truly bargains and fights for the working-class majority. Expanding the number of active unions will only benefit the workforce-those who are union and non-union alike.

For short-term and immediate relief of student-loan debt, which has become a critical issue:

• Shift direct-lending administration to the federal government and regulate and reduce interest rates on loans. Work toward de-profitizing higher education, making higher education a civic value.

• Reduce the military budget and replenish the diminished funding to schools, colleges, and universities that once helped to keep tuition costs down or made possible free tuition to public schools.

• Allow for student-loan debt to be included in bankruptcy claims, allowing for full or partial forgiveness of the debt to those who are without the means to pay.

The brief period of Keynesian consensus that ruled from the 1940s to the 1970s is over. The neoliberal imperative that has ruled since is currently subjecting an ever-larger share of the population to brutal austerity measures. Skyrocketing levels of debt and structural unemployment are the most visible manifestations of how far neoliberalism has penetrated into the structures of American society. However, in the years ahead, it will prove increasingly difficult to disguise the full nature of the crisis, and new opportunities to advance programs of systemic change can and will present themselves. If the left does not find a way to rise to the occasion, then it is unclear which track the country will take as it makes its way toward collapse.

This essay was published in the Winter 2016 edition of New Politics.

Notes

1. U.S. Department of Labor Bureau of Labor Statistics.

2. Karl Marx, Capital, Volume 3: Part II, Chapter 8.

3. John Maynard Keynes, The General Theory of Employment Interest and Money (London: Macmillan and Co., 1936), 15.

4. U.S. Department of Labor Bureau of Labor Statistics.

5. U.S. Federal Individual Income Tax Rates History (Nominal Dollars).

6. U.S. Federal Individual Income Tax Rates History (Nominal Dollars).

7. Karl Marx and Friedrich Engels, The Manifesto of the Communist Party (1848). Chapter 1.

8. Thomas I. Palley, "America's Exhausted Paradigm."

9. Colin Jenkins, " The Great Recession, Six Years Later: Uneven Recovery, Flawed Indicators, and a Struggling Working Class ," The Hampton Institute, November 5, 2014.

10. Heidi Shierholz, "Is There Really a Shortage of Skilled Workers?" January 23, 2014.

11. Fred Goldstein, "Marxism and Long-term Unemployment."

12. Jenkins, "The Great Recession."

13. O. Khazan, " Why Americans Are Drowning in Medical Debt ," The Atlantic, Oct. 10, 2014.

14. R. Wile, " Student Debt Has Turned Millennials into Carless, Homeless, Basement Dwellers Who Can't Borrow ," Fusion, Feb 2, 2015.

15. D.S. Logan, " Fiscal Fact: Summary of the Latest Federal Individual Tax Data." Tax Foundation, 2011: No.285.

16. D. Gilson, " Overworked America: 12 Charts That Will Make Your Blood Boil ," Mother Jones, July/Aug 2011.

17. J. Geler, "Capitalism's Long Crisis,"International Socialist Review (No. 8, 2010).

18. E. Blake, " State funding for higher education in US slashed by 20 percent since 2008," World Socialist Web Site.

19. M.D. Weiss, " Student Loan Debt: America's Next Big Crisis ," USA Today, Aug 23, 2015.

20. R. Hiltonsmith, "At What Cost? How Student Debt Reduces Lifetime Wealth," Demos.

21. J.Nichols, Dollarocracy: How the Money and Media Election Complex Is Destroying America (Nation Books, 2014).

The Great Recession, Six Years Later: Uneven Recovery, Flawed Indicators, and a Struggling Working Class

By Colin Jenkins

In July of this year, Barack Obama boasted of an impressive recovery the US has undertaken since the Great Recession of 2008, proclaiming, "We've recovered faster and come farther than almost any other advanced country on Earth." To support this claim, the White House released a report showing that, out of 12 countries identified as "advanced" (France, Germany, Greece, Iceland, Ireland, Italy, Netherlands, Portugal, Spain, Ukraine, United Kingdom and United States), the United States is "one of only two (the other being Germany) that experienced systemic financial crises in 2007 and 2008 but have seen real (gross domestic product) per working-age person return to pre-crisis levels."

Reports such as these have become commonplace in 2014, not only from those in the White House, but also from multiple media sources. Within mainstream circles, the recovery has generally been lauded by the Democratic wing of the media (MSNBC, Huffington Post, and of course reports from the White House) and questioned by the Republican wing (Fox News, the Wall Street Journal). Since the reports stemming from these sources are almost always politically-charged, they have a tendency to be misleading in at least some manner. In the rare instance where genuine information or analysis leaks from the mainstream, it is usually the unintended result of a media spin.

Ultimately, the intended purpose of these reports are reduced to either showing Barack Obama and the Democratic Party in a good light (by focusing on seemingly positive statistics) or showing Obama and the Democrats in a bad light (by focusing on seemingly negative statistics). Often times, the same statistics may be used; however, spun differently. Neither side is interested in formulating meaningful analysis, but rather in swaying voters one way or the other. Still, in this media tug-o-war, facts are sometimes used to support political arguments, and thus may be useful from time to time if one is able to pick them out of the fray. But, even when we catch a glimpse of fairly reliable statistics, how do we cut through the politically-charged spins to give them meaning?

Take Obama's July statement for instance. It suggests that the US has experienced a strong recovery since the 2008 economic crisis, right? Well, not necessarily. What it says is that the US has experienced a better recovery than 11 out of 12 of its "advanced" counterparts that "experienced systemic crises," which (it's important to note) were handpicked by the White House. According to the International Monetary Fund, there are actually 36 countries that are considered to have "advanced economies." And considering the global nature of the economy, it's difficult to claim that 67% of them avoided systemic crisis. When compared to the 36, the US ranks 12th in GDP growth and 9th in unemployment rate recovery. Not necessarily bad, but certainly not as good as suggested.

Which brings us to some other questions: How accurate are GDP and unemployment rates when assessing the overall economic well-being of a country? Why are such macroeconomic indicators used so frequently in mainstream analyses? Do they accurately represent the well-being of the working-class majority, or do they simply represent convenient fodder used to supplement political spins? Let's take a look.

Gross Domestic Product and the Dow Jones Industrial Average

Two major indicators used to determine the overall health of the economy are the Gross Domestic Product (GDP) and the Dow Jones Industrial Average (DJIA).

US GDP growth rates over the past six years suggest a strong recovery. Since falling more than 16 percent during the Great Recession of 2008-09, the GDP has experienced growth in 19 out of 21 financial quarters.

2013 was especially successful in terms of GDP growth, averaging over 3 percent for the first time since the recession. 2014 started out slow, dropping a little over 2% in the first quarter (Q1 2014); however, this was written off as an irregularity by analysts, including PNC Senior Economist Gus Faucher, who attributed the drop to " bad weather " that "was a significant drag on the economy, disrupting production, construction, and shipments, and deterring home and auto sales." Since that time, the GDP has been growing at a rate of 4.1% over the past six months.

The DJIA has shown even bigger signs of recovery. After being cut in half between September 2007 (15,865) and February 2009 (7,923), the DJIA has experienced an almost unfathomable boom.

It hit its highest point ever in November 2013, nearly five years after the recession, at 16,429, and has been breaking records ever since. Heading into November of 2014, it stands at 17, 390 - the highest point in its 128-year history.

Corporate Profits

Not surprisingly, the cumulative amount of corporate profits in the United States have paralleled the success of the stock market. American Enterprise Institute economist Mark J. Perry has illustrated a sharp correlation between the S & P 500 Index and after-tax corporate profits in the chart below:

Perry explains this phenomenon:

"Starting about 2009, a one-to-one relationship between stock prices and after-tax corporate profits has once again re-emerged, and both the S&P 500 and corporate profits have increased by the exact same 119% at the end of 2013 from their cyclical, recessionary lows. The all-time record highs for the S&P 500 Index in 2013 were being driven by record-high corporate profits as the chart shows, and it's almost certain that the ongoing bull market rally in 2014 continues to be supported by record-high corporate profits."

The corporate landscape has rarely been as conducive to generating profit as it is right now. As a result, the post-recession years have been dubbed "a golden age of corporate profits" by those in both mainstream and alternate media. Specifically, "corporate earnings have risen at an annualized rate of 20.1 percent since the end of 2008." As a percentage of national income, "corporate profits stood at 14.2 percent in the third quarter of 2012, the largest share at any time since 1950."

To put the significance of this growth in perspective, at the end of 2008, during the peak of the recession, US corporate after-tax profits totaled $671.40 Billion. At the end of June 2014, that total has nearly tripled to $1.842 Trillion.

Unemployment Rate and Job Growth

Another major indicator used to gauge the state of the economy is the unemployment rate. In October of 2009, after the residual effects of the recession had settled, the US unemployment rate officially hit 10% for only the second time since 1940 (10.8% in 1982). After hovering around 9% through 2011, the rate has steadily decreased over the past few years, dropping below 6% in September of 2014 - a level untouched since July of 2008.

This new 6-year low in the rate includes 1.9 million people dropping from the ranks of the unemployed, and the number of "long-term unemployed" falling 1.2 million over the past year.

According to the US Department of Labor, "employers added 248,000 jobs in September (2014)" and "payrolls have expanded an average 227,000 a month this year, putting 2014 on track to be the strongest year of job growth since the late 1990s." The job growth rate in 2014 included a 300,000+ jump in April. And much of this expansion has been fueled by the private sector, which "has now added 10.3 million jobs over 55 straight months of growth" since the recession.

Flawed Indicators

Based on assessments which focus on macroeconomic indicators like the GDP, DJIA, and Unemployment Rate, one could reasonably come to the conclusion that not only has the US fully recovered from the "Great Recession," but it has actually surpassed pre-recession levels in economic well-being. However, this begs the question: whose well-being? And a closer examination uncovers plenty of contradictions.

The contradictions that arise from such assessments are largely due to the inherent flaws of these indicators. According to the New Economy Working Group, "Gross Domestic Product (GDP) has many deficiencies as a measure of economic well-being. Most often noted is the fact that it can only add, which means it makes no distinction between beneficial and harmful economic activity." Also, GDP analyses focus solely on total growth, and do not attempt to assess levels of wealth distribution:

"There could be complete income equality with everyone's purchasing power growing equally. Or the society may be divided between a small minority of the extremely affluent and a majority of the extremely destitute - or anything in between. GDP gives no clue one way or the other. Growth in the incomes of a few billionaires can produce impressive growth in GDP even as a majority of people starve."

In fact, during the past half-century, the DJIA has lost almost all of its credibility as a reliable indicator of economic well-being. And since the rise of globalization in the late-1990s, it has become increasingly irrelevant to economic activity on a national level. "The Dow's biggest flaw, perhaps, is that it doesn't help us to make sense of an increasingly interconnected global economy - one in which what's good for GM isn't always good for the country," explains Adam Davidson. "GE, IBM and Intel, for example, all make more than half their profits in other countries. And while this may be great for their shareholders, it means little for most Americans."

The ever-increasing gap between corporate profit and workers income has also served as a death knell to the DJIA indicator. "In the postwar boom of the 1950s, the economy was growing so fast, and the benefits were so widely shared (throughout the socioeconomic ladder), that following 30 large American companies was a solid measure of most everyone's personal economy," Davidson adds. Back then, "what was good for GM really was good for the country." In a modern economic environment that rewards CEOs 331 times more than the average worker, and 774 times more than minimum wage workers, this is no longer the case. (In 1983, this ratio was 46 to 1)

Historically, the unemployment rate has been considered a fairly weak indicator of economic well-being, and for good reason. Its two major flaws lie in its failure to gauge levels of income, and its inability to consider things like "underemployment" and "hidden unemployment."

These lost categories include "people who have given up looking for jobs or work part time because they can't find full-time position." In 2014, as unemployment statistics suggest a vast improvement in labor participation, "more than 9 million Americans still fit into these categories, about 60 percent - or 3.5 million - above prerecession levels, according to the Labor Department."

Evan Horowitz explains:

"Let's say there are 100 people either working or looking for work. If 94 of those people have jobs, and six are seeking jobs, then the unemployment rate is 6 percent.

Notice that a lot hinges on people 'working or looking for work.' Say you want to work, but the job market is bad and you decide to put off the search until conditions get better. You're still unemployed, just not counted as unemployed by the government.

To return to the example, if three of those six people looking for work get discouraged and give up, the unemployment rate would fall to about 3 percent."

Furthermore, the unemployment rate completely ignores income. In other words, even rates that are considered to represent "full employment" (4-5%) essentially mean nothing if a considerable number of jobs pay poverty wages.

State of the Working Class

Because macro-indicators like the DJIA, GDP, and unemployment rates are severely flawed in their ability to reflect standards of living and economic well-being for a population, it is important to evaluate how the majority is fairing in this so-called recovery.

Since the US population throughout is largely driven by consumerism, a telling statistic is the market-based core personal consumption expenditures (PCE) price index, a measurement used to determine the amount of expendable income the average consumer possesses at a given time. According to Josh Bivens of the Economic Policy Institute, "the market-based price index for core PCE (i.e., excluding food and energy) rose just 1.3% over the past year, well below the Fed's 2% inflation target." This supports further evidence that impressive gains in GDP and corporate profits are simply not reaching (or trickling down to) a majority of Americans.

Despite recent and steady job growth, there are still 1.4 million fewer full-time jobs in the US today than there was in 2008. A recent survey conducted at Rutgers University reports that more than 20 percent of all workers that have been laid off in the past five years still have not found a new job.

When considering workers who have given up on job searches, the unemployment rate is estimated at more than 12 percent.

A more accurate indicator than the unemployment rate may be the actual employment rate. When looking at this, we see that roughly 80 percent of " prime-age workers " (those between 25 and 54) had jobs in 2007. "That bottomed out at around 75 percent during the worst of the downturn, but has risen to only 76.7 percent since."

Despite steady job growth, new jobs simply do not stack up to the jobs that were lost. In sectors that experienced severe job losses due to the recession, workers are earning 23% less today. The average annual salary in the manufacturing and construction sectors - a particularly hard hit area - was $61,637 in 2008. It has now plummeted to $47,171 in 2014. Similar adjustments to income levels imply that $93 billion in lower wage income has been created during the recovery - meaning workers, across the board, are receiving a much smaller share than they were before 2009.

A report by the United States Conference of Mayors (USCM) also showed that "the majority of metro areas - 73 percent - had households earning salaries of less than $35,000 a year," hardly a living wage for families facing ever-rising commodity prices.

Despite increased productivity and corporate profits, most workers' wages have actually fallen. Biven reports, "From the first half of 2013 to the first half of 2014, real hourly wages fell for all deciles, except for a miniscule two-cent increase at the 10th percentile. Underlying this exception to the general trend at the 10th percentile is a set of state-level minimum-wage increases in the first half of 2014 in states where 40 percent of U.S. workers reside."

"As a percentage of national income, corporate profits stood at 14.2 percent in the third quarter of 2012, the largest share at any time since 1950, while the portion of income that went to employees was 61.7 percent, near its lowest point since 1966,"reported Nelson Schwartz in 2013. Dean Maki, chief US economist at Barclay's reports that "corporate earnings have risen at an annualized rate of 20.1 percent since the end of 2008, but disposable income inched ahead by 1.4 percent annually over the same period, after adjusting for inflation," adding that "there hasn't been a period in the last 50 years where these trends have been so pronounced."

In the midst of impressive GDP growth, the US working class is experiencing a legitimate hunger crisis that does not seem to slowing down. "As of 2012,49 million Americans suffer from food insecurity, defined by the U.S. Department of Agriculture (USDA) as lack of access to 'enough food for an active, healthy life.' Nearly one-third of the afflicted are children. And millions of them don't even have access to food stamps, according to a new report from the anti-hunger organization Feeding America."

In May of 2014, there were 46.2 million Americans on food stamps, a slight decrease from a record 47.8 million in December 2012. According to the US Department of Agriculture, 14.8% of the US population is currently on the Supplemental Nutrition Assistance Program (SNAP). Prior to the recession, the percentage of the population requiring such assistance hovered between 8 and 11 percent.

According to the US Census Bureau, "in 2013, there were 45.3 million people living in poverty" and "for the third consecutive year, the number of people in poverty at the national level was not statistically different from the previous year's estimate." The official poverty rate is at 14.5 percent.

Conclusion

Between 2008 and 2013, the number of US households with a net worth of $1 million or more increased dramatically, from 6.7 million to 9.6 million. Households with a net worth of $5 million and $25 million respectively also increased. "There were 1.24 million households with a net worth of $5 million or more last year, up from 840,000 in 2008. Those with $25 million and above climbed to 132,000 in 2013, up from 84,000 in 2008."

The US government, or more specifically, the Federal Reserve, has been instrumental in this uneven recovery that has been characterized by massive corporate profits and booming millionaires on one side (a small minority), and falling wages, increased poverty, and frequent reliance on food stamps on the other side (a large majority).

According to a September 2014 study by the Harvard Business School, the widening gap between America's wealthiest and its middle and lower classes is "unsustainable," and "is unlikely to improve any time soon." The study points the finger at "shortsighted executives" who are "satisfied with an American economy whose firms win in global markets without lifting US living standards" for American workers, and therefore create an extremely polarized population where a majority of workers are disenfrachised from the business world.

The practice of quantitative easing (QE) - "An unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply" - has become common during the recovery. Essentially, this practice "increases the money supply by flooding financial institutions with capital in an effort to promote increased lending and liquidity." After three bouts of QE, all occurring since the recession, the Federal Reserve has acquired $4.5 trillion in assets , while adding at least $2.3 trillion of additional currency into the economy.

Robert D. Auerbach - an economist with the U.S. House of Representatives Financial Services Committee for eleven years, assisting with oversight of the Federal Reserve, and now Professor of Public Affairs at the Lyndon B. Johnson School of Public Affairs at the University of Texas at Austin - estimates that 81.5% of this money has not been used to "stimulate the economy," but rather " sits idle as excess reserve in private banks."

Others have reported that, rather than sitting idle as Auerbach suggests, the money has actually funneled through to major corporate players, creating massive personal wealth for a select few. CNBC's Robert Frank reported just last week that "the world's billionaires are holding an average of $600 million in cash each - greater than the gross domestic product of Dominica," which "marks a jump of $60 million from a year ago and translates into billionaires' holding an average of 19 percent of their net worth in cash."

When considering the top-heavy recovery numbers, and increased misery for the working class, this comes as no surprise. And it certainly comes as no surprise to political economist Doug Henwood, who reported such trends back in 2012:

"Despite the strong recovery in cash flow, to record-breaking levels, firms are investing at levels typically seen at cyclical lows, not highs. Some cash flow is going abroad, in the form of direct investment, but still you'd think returns like these would encourage investment. Instead, they've been shipping out gobs to shareholder. Here's a graph of what I call shareholder transfers (dividends plus stock buybacks plus proceeds of mergers and acquisitions) over time:

Though not at the preposterously elevated levels of the late 1990s and mid-2000s, transfers are at the high end of their historical range. Instead of serving the textbook role of raising capital for productive investment, the stock market has become a conduit for shoveling money out of the 'real' sector and into the pockets of shareholders, who besides buying other securities, pay themselves nice bonuses they transform into Jaguars and houses in Southampton."

The Great Recession - like the 2001 recession before it, the 1990-91 recession before that, the 1981-82 recession before that, the 1973-75 recession before that, and so on - was the result of deeper systemic deficiencies. While the emergence of financialization opened the door for manipulative and predatory finance tricks (credit default swaps, mortgage-backed securities, NINJA loans, etc...) and helped to construct an impressively profitable house of cards, it is only part of the story. Ultimately, it is the boom & bust, cyclical nature of capitalism, along with its perpetually falling rates of profit (not cumulative profit), that are truly responsible, though almost always ignored.

The nature of this latest recovery suggests that the final nail in the working-class coffin, whose construction has been underway since the birth of neoliberalism, has been secured into place. Despite desperate measures used to pump massive amounts of currency into the economy through QE, virtually none has trickled down to the 99%. It's like déjà vu, all over again. And again… And again…

Corporatism 2.0: Wal-Mart and the Modern Corporate Business Structure

By Colin Jenkins

Quick... answer this question: Who pays Wal-Mart's workforce the money necessary for them to sustain? Independent franchisees? No. Wal-Mart's board of directors? Nope. Wal-Mart's shareholders? Not even close. The answer is us. You and I. In fact, on average, American taxpayers pay a staggering $2.66 billion dollars a year to Wal-Mart workers. [1] Why? Simply put, because they must eat. And, so Wal-Mart executives can keep more of the company's "profit" to themselves and their shareholders. How much profit? How about $16.4 billion in 2011 alone. [2]

Hence, the modern corporate business structure is upon us. As much nonsense as we must endure from right-wing politicians, outspoken Randian "libertarians," and hired financial guns about the powers of the "free market" and the rewards of "business savvy," the fact of the matter is that without a supportive State structure to prop them up, corporations like Wal-Mart would be in trouble. Well, not necessarily in "trouble." But, if these monstrosities were unable to rely on the "Welfare State" to supplement their workforce, they would most certainly be forced to pay a livable wage. And if so, in Wal-Mart's case, that $16.4 billion in shareholders' profit would probably look more like $4 billion. Not too shabby, especially for a family that currently owns $100 billion in accumulative wealth, which is more than 130,000,000 (yes, that's 130 million) Americans - roughly half of the entire country - combined can say for themselves. [3]

Of course, big business using the government as a tool for creating large amounts of profit is nothing new. The original robber barons, namely rail and banking tycoons at the turn of the 20th century, notoriously used the federal coffers to fatten their own pockets in the name of "public interest" and "investment projects." However, today's retail giants like Wal-Mart have unveiled a new brand of corporatism - one that goes beyond the in-your-face style of the government "contracts" of old. The arrival of Reagan's "Conservative Revolution" of the 1980s ushered in a new, sophisticated and sleek style of corporate entitlements. This neoliberal blueprint, which cries for "laissez faire" and "free markets" while secretly co-opting government - and which champions and "legitimizes" corporate power and privilege - has created nothing more than a Gilded Gomorrah; a landscape that places corporate entities on a pedestal, relieves them of any and all social responsibility, creates too-big-to-fail businesses and banks, and has cemented the seemingly absurd notion of "corporate personhood."

Corporatism 2.0, like any updated version, borrows the structure set by its predecessor, repairs and improves prior shortcomings, and adds new features that are designed to enhance experience and effectiveness. Building on a centuries-old foundation set by plantation tyrants, patroonships, feudal lords and industrial barons; modern-day corporations, despite their anti-government and anti-tax rhetoric, ultimately depend on the state to protect their private interests. Much like the privileged landowner of the past, who was "ardently individualistic in that he demanded, and was accorded, the unimpaired right to get land in any way he legally could, hold a monopoly of as much of it as he pleased, and dispose of it as he willed," [4] the corporate man of this era rests easily under the blanket of state power. And just as the old plantation lord asserted this "individualism," "calling upon Society, through its machinery of Government, for the enactment of particular laws, to guarantee him the sole possession of his (vast amounts of) land and uphold his claims and rights by force if necessary," so too does the modern corporate entity seek and receive unrestrained power. They "yoke society as a partner" as long as "society" allows them the power to accumulate as much as they wish. [5]

Despite the new trends that have accompanied these "upgrades," old-fashioned direct subsidies are still in play. For example, Wal-Mart has received public funds (taxpayers' money) "to build retail stores and a network of nearly 100 distribution centers to facilitate its expansion." In fact, "over 90% of the company's distribution centers have been subsidized by local, state and federal government." [6] A recent study conducted by Good Jobs First found "244 Wal-Mart subsidy deals with a total value of $1.008 billion;" and reported that "taxpayer dollars have helped individual stores and distribution centers with everything from free or cut-price land to general grants." One example provided in the report focused on Sharon Springs, N.Y., where "a distribution center made a deal with an industrial development agency for the agency to hold the legal title to the facility so Wal-Mart could evade property taxes - a deal which will ultimately save Wal-Mart about $46 million over the life of this one agreement." [7]

While the ideology of corporatism - and the many practices that accompany it - hasn't changed, the techniques have. Today's corporate structure relies heavily on covert activities, government legislation, and "activist judges" to carry out its agenda. The formation of "Super PACs" - legitimized by the Supreme Court's Citizens United decision - has joined "union busting," price gouging, and perhaps the newest trick in their bag - workforce supplementation via government welfare programs - to allow corporations like Wal-Mart to use the state in some ways, and to supersede it in others. The most recent update to this system of "socializing costs and privatizing gains" has been the introduction of "backdoor subsidies" which amount to indirect avenues of public subsidization. Like many corporations seeking to maximize their bottom line, Wal-Mart's executives convene regularly to discuss "business plans" and "strategic maneuvering." Since profit equals total revenue minus total cost (In the most basic economic sense), there are two elementary means to maximizing said profit: (1) increase revenue, and/or (2) decrease costs. And since a good chunk of a company's "costs" come in the form of paying its workforce - the less a company pays its workers, the more profit goes to its executives and shareholders.* Hence, the formation of a "business plan" that seeks to use the government "safety net" and "welfare" programs to offset the company's costs.

This "business plan" includes a concerted effort by Wal-Mart's executive headquarters and management to educate and refer their workforce to public assistance programs. A January 2012 Wal-Mart Associate Benefits book provides a directory so associates can locate their local Medicaid office. [8] "Instead of providing affordable health insurance, Wal-Mart encourages its employees to sign up for publicly funded programs, dodging its health care costs and passing them on to taxpayers," Jenna Wright explains. "The company is the poster child for a problem outlined in a 2003 AFL-CIO report on Wal-Mart's role in the healthcare crisis: "federal, state and local governments" - American taxpayers - must pick up the multi-billion-dollar tab for employees and dependents, especially children, of large and profitable employers who are forced to rely on public hospitals and other public health programs for care and treatment they need but cannot obtain under their employers' health plans." [9]

In order to maintain excessive rates of executive pay (Wal-Mart'sCEO, Mike Duke, gets paid 1,034 times morethan the median Wal-Mart worker, according to a new analysis by PayScale), and to avoid paying its workers' a livable wage (Half of Wal-Mart workers made less than $22,400 in 2012, according to PayScale, which is below poverty level for a family of four), the company relies on programs such as food stamps, Medicaid, HEAP and Section 8 rental assistance. [10] Because of this, "reliance by Wal-Mart workers on public assistance programs in California alone comes at a cost to the taxpayers of an estimated $86 million annually; this is comprised of $32 million in health related expenses and $54 million in other assistance." [11] On average, a single Wal-Mart location requires "$420,750 in tax dollars for employee assistance a year, working out to $2,103 per worker," to operate. Broken down, this includes: $36,000 a year for free or reduced school lunches (assuming that 50 families of employees qualify); $42,000 a year for Section 8 rental assistance (assuming that 3% of the store employees qualify); $125,000 a year for federal tax credits and deductions for low-income families (assuming that 50 employees are heads of households with a child, and 50 employees are married with two children); $108,000 a year for the additional federal contribution to state children's health insurance programs (assuming that 30 employees with an average of two children qualify); $100,000 a year for additional Title I expenses (assuming 50 families with two children qualify); and $9,750 a year for the additional costs of low-income energy assistance. [12] On a national scale, these "backdoor subsidies" amount to $2.66 billion annually in Food Stamps and other taxpayer assistance, and over $1.02 billion a year in healthcare costs. [13]

During a time when the working class has essentially become the "working poor," we, as a society, are confronted with only a few options. We can either demand that corporations like Wal-Mart, who are enjoying record-breaking profit margins year after year, start paying a livable wage to their workers,or we must pay Wal-Mart's workforce for them. As the stock market continues to rise to unprecedented levels - a reflection of the immense success being enjoyed at the very top of the socio-economic ladder - and considering that Wal-Mart's CEO, executive team and shareholders are major benefactors of this "success," the latter choice really shouldn't be an option. Like the majority of us who must participate in a system that compels us to sell ourselves for wages in order to sustain, Wal-Mart's workforce deserves, at the very least, the dignity of earning a living. And we, as taxpayers, owe it to ourselves to demand that Wal-Mart starts paying livable wages and stops forcing their operational costs onto us. If you accept the status quo, you've already been taken. And after your next trip to Wal-Mart, as you walk out staring at your receipt in admiration, keep in mind that you've already paid for those "savings."

Notes

* It's important to tackle the misconception that labor costs have a direct effect on the prices of goods - in other words, higher wages will automatically equal higher prices on goods - a notion that is simply not true, especially considering the retail scale and profit margin of a company like Wal-Mart, where there is a substantial pool of top-tier profits that come into play long before consumer prices should.

[1] [Arindrajit Dube, Phd, and Ken Jacobs. Hidden Cost of Wal-mart Jobs: Use of Safety Net Programs by Wal-Mart workers in California. UC Berkeley Labor Center, August 2, 2004.

[2] Ibid

[3] Reagan's "Welfare Queen" FOUND! Monday, 03 December 2012. By Thom Hartmann and Sam Sacks , The Daily Take

[4] Myers, Vol 1, pp. 104-105

[5] Ibid

[6] Shopping for Subsidies: How Wal-Mart uses Taxpayers money to fund its never-ending growth. Philip Mattera and Anna Purinton, Good Jobs First, May 2004.

[7] Ibid

[8] Why Wal-Mart Loves Welfare, California Progress Report. Bobbi Murray, 3/14/12

[9] Wal-Mart Welfare: How taxpayers subsidize the world's largest retailer. Jenna Wright, Dollars and Sense magazine, January/February 2005.

[10] Walmart's CEO Paid 1,034 Times More Than The Median Walmart Worker: PayScale The Huffington Post | By Bonnie Kavoussi Posted: 03/29/2013 1:18 pm EDT

[11] Arindrajit Dube, Phd, and Ken Jacobs, 2004.

[12] Everyday Low Wages: The Hidden Price we all Pay for Wal-Mart
A Report by the democratic staff of the Committee on Education and the workforce -
US House of Representatives, February 16, 2004.

[13] How Does That Make Any Sense? Jill Klausen. The Winning Words Project, 2012.