Socialism, Popular Education, and the Fight Against Racism in the Soviet Union

By Derek R. Ford

While in the U.S. the veil of anti-communism is beginning to lift and the word "socialism" isn't as dirty as it once was, the Left still has a lot of recuperating to do. The virulent campaign against communism in the U.S. is deep and multi-faceted, and it has taken on many different forms. And it seems like we constantly forfeit one of our greatest assets in the struggle to recuperate communism: our own history. Instead of critically appreciating the history of the actually-existing workers struggle and the social formations it has produced, we instead seek to separate ourselves from that legacy, to claim that they weren't and aren't really communists. This is an easy way of dealing with the propaganda that is delivered through our media and schools on a regular basis, for we can tell people, "Well, what your teachers were talking about wasn't really socialism." This is, however, just another form of American exceptionalism, left American exceptionalism.

I'm not going to make an argument about the economic and social systems of various social formations throughout history (if you are interested in that argument, read Albert Szymanski's book, Is the Red Flag Flying?), but I am going to demonstrate that the history of socialist struggle provides us with inspiring and effective examples of how we can fight against oppression. In particular, because we are enjoying our month-long relief from another white history year, I want to give two examples of the way that the Soviet Union mobilized popular education to confront racism.

Harry Haywood was recruited into the Communist Party USA in the early 1920s, and was soon sent to the Soviet Union, first to study at KUTVA (the University of the Toilers in the East named for Stalin) and later at the Lenin School. During his time in the Soviet Union Haywood participated in the Sixth Congress of the Communist International, witnessed the debates between Trotsky and Stalin, and played a pivotal role in theorizing the Black Belt Thesis, the concept that Black people in the U.S. constituted an oppressed nation.

Haywood, a Black man originally from South Omaha, Nebraska, spent several years in the Soviet Union. In his autobiography, Black Bolshevik, he recounts a few instances of racial encounters and racist actions. For the racial encounters, Haywood writes that he and his fellow delegation of Black communists from the U.S. would attract attention for their skin color in the Moscow streets. "If we paused to greet a friend," he writes, "we found ourselves instantly surrounded by curious crowds… It was a friendly curiosity which we took in stride" (169).

Haywood notes that during his stay he only encountered one instance of racist hostility. While on a streetcar one evening to visit a friend, a drunken passenger stepped aboard and said "something 'about Black devils in our country'" (170):

A group of outraged Russian passengers thereupon seized him and ordered the motorman to stop the car. It was a citizen's arrest, the first I had ever witnessed. "How dare you, you scum, insult people who are the guests of our country!"

What then occurred was an impromptu, on-the-spot meeting, where they debated what to do with the man. I was to see many of this kind of "meeting" during my stay in Russia.

Some passengers wanted to excuse the passenger's behavior, blaming it on his drinking. Ultimately, however, it was decided that they would take him to the militia station to press charges. The motorman proceeded to drive everyone to the station, where he spent the night in jail.

In 1930, Haywood's last year in the Soviet Union, an incident took place in Stalingrad that, he writes, "forcibly brought home to me the contrast between the socialist world which I was leaving and the racist world which I was about to re-enter" (339).

Unlike the capitalist world, which was in the throes of the Great Depression, the Soviet Union was suffering from a labor shortage. As a result, U.S. workers were flocking to the Soviet Union for jobs. Several hundred white technicians were brought to work in a tractor factory in Stalingrad, and they had their own restaurants and shops in the area surrounding the factory, forming something of a small colony. One day, Robert Robertson, a Jamaican native and U.S. citizen, joined the colony. He was brought over from Detroit to train workers in tool-grinding. His first morning there he entered the American dining room for breakfast and was accosted, beaten up, and thrown out of the restaurant by two white U.S. workers.

This attempt to transplant American racism to Soviet soil was met with outrage. It was made a political issue of high order by the Soviet trade unions and Party organizations. Factory meetings were called throughout the Soviet Union which denounced this crime and expressed the outrage of Soviet workers… The slogan of the day became, "American technique yes! American prejudice no!" It was given the widest publicity; the culprits were arrested immediately, not for assault and battery but for white chauvinism, a social crime and therefore far more serious.

A mass public trial, with delegations sent from factories all over the country, was held. The white technicians were sentenced to two years imprisonment which was commuted to deportation to the United States. (340)

Robertson remained in the Soviet Union, where he eventually gained citizenship.

These two examples document the seriousness with which the Soviet Union-its people and its state-took racism. When racist incidents occurred, they were not explained away or swept under the rug. Instead, they were put in the spotlight, becoming the subject of dialogue, deliberation, and justice. The state apparatus was wielded to snuff out racism and national chauvinism, and the masses were mobilized-the masses self-mobilized-to address racism head-on. They give educators a perfect example of what popular education is. Imagine what they would have done to a George Zimmerman!

References

Harry Haywood. (1978). Black Bolshevik: Autobiography of an Afro-American communist. Chicago: Liberator Press.

Albert Szymanski. (1979). Is the Red Flag Flying? The political economy of the Soviet Union today. London: Zed Books.

Derek R. Ford is a teacher, organizer, and writer living in Philadelphia. He earned his PhD in cultural foundations of education at Syracuse University in 2015. He is co-author (with Curry Malott) of Marx, Capital, and Education: Towards a critical pedagogy of becoming (Peter Lang, 2015), and his latest book, The Secret Struggle of Study: For a commonness against is forthcoming through Lexington Books later this year. He is Co-Chair of the Education Department at The Hampton Institute and an organizer with the ANSWER Coalition.

A Long-War Strategy for the Left

By William T. Hathaway

As the viciousness of capitalism engulfs ever more of us, our yearnings for change are approaching desperation. The system's current leader, Barack Obama, has shown us that the only change we can believe in is what we ourselves create.

To do that, we need to know what is possible in our times and what isn't. The bitter probability is that none of us will see a society in which we'd actually want to live. Even the youngest of us will most likely have to endure an increasingly unpleasant form of capitalism. Despite its recurring crises, this system is still too strong, too adaptable, and has too many supporters in all classes for it to be overthrown any time soon. We're probably not going to be the ones to create a new society.

But we can now lay the groundwork for that, first by exposing the hoax that liberal reforms will lead to basic changes. People need to see that the purpose of liberalism is to defuse discontent with promises of the future and thus prevent mass opposition from coalescing. It diverts potentially revolutionary energy into superficial dead ends. Bernie Sanders' "long game" campaign is really only a game similar to that of his reformist predecessor, Dennis Kucinich, designed to keep us in the "big tent" of the Democratic Party. Capitalism, although resilient, is willing to change only in ways that shore it up, so before anything truly different can be built, we have to bring it down.

What we are experiencing now is the long war the ruling elite is fighting to maintain its grip on the world. The current phase began with the collapse of Keynesian capitalism, which flourished from the 1950s into the '70s, when the primary consumer market was in the capitalist headquarter countries of North America and Western Europe. Corporations were able to stimulate domestic consumption and quell worker discontent there by acceding to labor's demands for better wages and conditions. That led to a 30-year bubble of improvement for unionized workers, predominantly male and white, that began to collapse in the '80s as capitalism gradually became globalized.

Then to maintain dominance Western corporations had to reduce labor costs in order to compete against emerging competition in low-wage countries such as China, India, Russia, and Brazil. Also international consumer markets became more important than the home market, but reaching them required low prices. So capitalist leaders reversed hard-won reforms, forcing down paychecks and working conditions in the West. And they tried to keep control of crucial Mideast oil resources by tightening their neo-imperialist hold on that region: overthrowing governments, installing dictators, undermining economies.

This aggression generated armed resistance: jihadist attacks against the West. Our response has been the current holy war against terror. All of this horrible suffering is just one campaign in capitalism's long war for hegemony. Any dominator system -- including capitalism, patriarchy, and religious fundamentalism -- generates violence.

Since we are all products of such systems, the path out of them will include conflict and strife. Insisting on only peaceful tactics and ruling out armed self defense against a ruling elite that has repeatedly slaughtered millions of people is naïve, actually a way of preventing basic change. The pacifist idealism so prevalent among the petty-bourgeoisie conceals their class interest: no revolution, just reform. But until capitalism and its military are collapsing, it would be suicidal to attack them directly with force.

What we can do now as radicals is weaken capitalism and build organizations that will pass our knowledge and experience on to future generations. If we do that well enough, our great grandchildren (not really so far away) can lead a revolution. If we don't do it, our descendants will remain corporate chattel.

Our generational assignment -- should we decide to accept it -- is sedition, subversion, sabotage: a program on which socialists and anarchists can work together.

Sedition -- advocating or attempting the overthrow of the government -- is illegal only if it calls for or uses violence. Our most important job -- educating and organizing people around a revolutionary program -- is legal sedition, as is much of our writing here on The Hampton Institute.

For subversion we could, for example, focus on institutions and rituals that instill patriotism in young people. School spirit, scouts, competitive team sports, and pledges of allegiance all create in children an emotional bond to larger social units of school, city, and nation.

Kids are indoctrinated to feel these are extensions of their family and to respect and fear the authorities as they would their parents, more specifically their fathers, because this is a patriarchal chain being forged. It causes us even as adults to react to criticism of the country as an attack on our family. This hurts our feelings on a deep level, so we reject it, convinced it can't be true. It's too threatening to us.

This linkage is also the basis of the all-American trick of substituting personal emotion for political thought.

Breaking this emotional identification is crucial to reducing the widespread support this system still enjoys. Whatever we can do to show how ridiculous these institutions and rituals are will help undermine them.

For instance, teachers could refuse to lead the pledge of allegiance, or they could follow it with historical facts that would cause the students to question their indoctrination. When a teacher gets fired, the resulting legal battle can taint the whole sacrosanct ritual and challenge the way history is taught in the schools.

Subversive parenting means raising children who won't go along with the dominant culture and have the skills to live outside it as much as possible.

Much feminist activism is profoundly subversive. That's why it's opposed so vehemently by many women as well as men.

Spiritually, whatever undercuts the concept of God as daddy in the sky will help break down patriarchal conditioning and free us for new visions of the Divine.

Sabotage is more problematic. It calls to mind bombing and shooting, which at this point won't achieve anything worthwhile. But sabotage doesn't need to harm living creatures; systems can be obstructed in many ways, which I can't discuss more specifically because of the police state under which we currently live. They are described in my book Radical Peace.

We'll be most successful by using both legal and illegal tactics but keeping the two forms separate. Illegal direct action is sometimes necessary to impair the system, impede its functioning, break it in a few places, opening up points of vulnerability for coming generations to exploit. This doesn't require finely nuanced theory or total agreement on ideology, just a recognition of the overriding necessity of weakening this monster, of reducing its economic and military power. It does require secrecy, though, so it's best done individually with no one else knowing.

As groups, we should do only legal resistance. Since we have to assume we are infiltrated and our communications are monitored, illegal acts must be done alone or in small cells without links to the group. Security is essential. Police may have the identity of everyone in the group, but if members are arrested and interrogated, their knowledge will be very limited. The principles of leaderless resistance provide the most effective defense for militants.

Using these tactics, we can slow down this behemoth, curtail its expansion, make it a less effective murderer. The government will of course try to crush this resistance. But that very response can eventually seal its doom because it increases polarization and sparks more outrage. People will see the rich have not only taken away our possibility for a decent life, but now they are taking away our freedom. Then the masses revolt.

When the police and military have to attack their own people, their loyalty begins to waver. They realize they too are oppressed workers, and they start disobeying their masters. The power structure grinds down, falters, and falls. At this point the revolution can succeed, hopefully with a minimum of violence. Then the people of that generation, with the knowledge and experience we have passed on to them, can build a new society.

This is not a pleasant path of action, and those whose first priority is pleasantness are repelled by it. That's why reformism is so popular: it's an illusion that appeals to cowards. But when their backs are to the wall, which will inevitably happen, even they will fight back. And there's something glorious in that revolutionary fight even in its present stage -- much more vivid and worthwhile than the life of a lackey.

William T. Hathaway is an adjunct professor of American studies at the University of Oldenburg in Germany. His new book, Lila, the Revolutionary, is a fable for adults about an eight-year-old Indian girl who sparks a world revolution for social justice. Chapters are posted onwww.amazon.com/dp/1897455844. A selection of his writing is available at www.peacewriter.org.

We Are More Than Commodities: False Consciousness and Why It's Still Relevant

By Colin Jenkins

"It is not consciousness of men that determines their being, but, on the contrary, their social being that determines their consciousness." - Karl Marx [1]

In Robert Tressell's literary classic, The Ragged Trousered Philanthropists, a significant scene occurs in Chapter Seven when some of the book's main cast of characters, a group of English laborers at the turn of the 20th century, gathers during a break in their work to discuss matters of labor, technology, unemployment and poverty. A lengthy conversation ensues:

'I don't see no sense in always grumblin',' Crass proceeded. 'These things can't be altered. You can't expect there can be plenty of work for everyone with all this 'ere labour-savin' machinery what's been invented.'

'Of course,' said Harlow, 'the people what used to be employed on the work what's now done by machinery, has to find something else to do. Some of 'em goes to our trade, for instance: the result is there's too many at it, and there ain't enough work to keep 'em all goin'.'

'Yes,' cried Crass, eagerly. 'That's just what I say. Machinery is the real cause of the poverty. That's what I said the other day.'

'Machinery is undoubtedly the cause of unemployment,' replied Owen, 'but it's not the cause of poverty: that's another matter altogether.'

The others laughed derisively.

'Well, it seems to me to amount to the same thing,' said Harlow, and nearly everyone agreed.

'It doesn't seem to me to amount to the same thing,' Owen replied. 'In my opinion, we are all in a state of poverty even when we have employment--the condition we are reduced to when we're out of work is more properly described as destitution.'

'Poverty,' continued Owen after a short silence, 'consists in a shortage of the necessaries of life. When those things are so scarce or so dear that people are unable to obtain sufficient of them to satisfy all their needs, those people are in a condition of poverty. If you think that the machinery, which makes it possible to produce all the necessaries of life in abundance, is the cause of the shortage, it seems to me that there must be something the matter with your minds.'

'Oh, of course we're all bloody fools except you,' snarled Crass. 'When they were servin' out the sense, they give you such a 'ell of a lot, there wasn't none left for nobody else.'

'If there wasn't something wrong with your minds,' continued Owen, 'you would be able to see that we might have "Plenty of Work" and yet be in a state of destitution. The miserable wretches who toil sixteen or eighteen hours a day--father, mother and even the little children--making match-boxes, or shirts or blouses, have "plenty of work", but I for one don't envy them. Perhaps you think that if there was no machinery and we all had to work thirteen or fourteen hours a day in order to obtain a bare living, we should not be in a condition of poverty? Talk about there being something the matter with your minds! If there were not, you wouldn't talk one day about Tariff Reform as a remedy for unemployment and then the next day admit that Machinery is the cause of it! Tariff Reform won't do away with the machinery, will it?'

'Tariff Reform is the remedy for bad trade,' returned Crass.

'In that case Tariff Reform is the remedy for a disease that does not exist. If you would only take the trouble to investigate for yourself you would find out that trade was never so good as it is at present: the output--the quantity of commodities of every kind--produced in and exported from this country is greater than it has ever been before. The fortunes amassed in business are larger than ever before: but at the same time--owing, as you have just admitted--to the continued introduction and extended use of wages-saving machinery, the number of human beings being employed is steadily decreasing. I have here,' continued Owen, taking out his pocket-book, 'some figures which I copied from the Daily Mail Year Book for 1907, page 33:

'"It is a very noticeable fact that although the number of factories and their value have vastly increased in the United Kingdom, there is an absolute decrease in the number of men and women employed in those factories between 1895 and 1901. This is doubtless due to the displacement of hand labour by machinery!"

'Will Tariff Reform deal with that? Are the good, kind capitalists going to abandon the use of wages-saving machinery if we tax all foreign-made goods? Does what you call "Free Trade" help us here? Or do you think that abolishing the House of Lords, or disestablishing the Church, will enable the workers who are displaced to obtain employment? Since it IS true--as you admit--that machinery is the principal cause of unemployment, what are you going to do about it? What's your remedy?'

No one answered, because none of them knew of any remedy: and Crass began to feel sorry that he had re-introduced the subject at all.

'In the near future,' continued Owen, 'it is probable that horses will be almost entirely superseded by motor cars and electric trams. As the services of horses will be no longer required, all but a few of those animals will be caused to die out: they will no longer be bred to the same extent as formerly. We can't blame the horses for allowing themselves to be exterminated. They have not sufficient intelligence to understand what's being done. Therefore they will submit tamely to the extinction of the greater number of their kind.

'As we have seen, a great deal of the work which was formerly done by human beings is now being done by machinery. This machinery belongs to a few people: it is worked for the benefit of those few, just the same as were the human beings it displaced. These Few have no longer any need of the services of so many human workers, so they propose to exterminate them! The unnecessary human beings are to be allowed to starve to death! And they are also to be taught that it is wrong to marry and breed children, because the Sacred Few do not require so many people to work for them as before!'

'Yes, and you'll never be able to prevent it, mate!' shouted Crass.

'Why can't we?'

'Because it can't be done!' cried Crass fiercely. 'It's impossible!'

Anyone who has ever taken part in a similar conversation with fellow workers knows that this fictional account couldn't be any more real, even over a century later. While it occurred in an imaginary, 1900-ish English setting, it surely resonates in a 21st-century American reality where collective working-class dissonance - what is referred to in Marxist circles as "false consciousness" - remains ignorant to the casual effects of capitalism. The conversation is packed with the typically tragic ironies of impoverished, insecure workers searching for any reason to explain their collective plight absent of blaming a system, let alone the faces of that system, which uses and discards them as it pleases. The lone conscious worker, Owen, does his best to enlighten the bunch. The main opposition comes from Crass, a character who symbolizes the epitome of false consciousness, not only in his ignorance of the system but perhaps even more so in his ill-informed, emotional pushback, which echoes the misleading narrative so often presented through mainstream channels. When pressed toward realizing the truth of his existence - and more importantly, the reason for it - Crass' dissonance hardens into an acceptance of hopeless despair summarized by those fatal words we've become all too familiar with - "that may be the case, but there's nothing we can do about it... it's just the way it is."

Such dissonance is expected in a highly divisive and unequal class society, especially when the prospect of a highly-conscious working class represents the single biggest threat to the few that benefit from this artificial arrangement. The key in forging this collective dissonance is found in turning a blind eye to material conditions and replacing the physical reality created by these conditions with a worldview shaped directly by ruling-class interests, which are accepted as being in line with the interests of all - a phenomenon which Antonio Gramsci referred to as cultural hegemony. In The German Ideology, Marx emphasized this cultural dynamic which inevitably stems from capitalism:

"The ideas of the ruling class are in every epoch the ruling ideas, i.e. the class which is the ruling material force of society, is at the same time its ruling intellectual force. The class which has the means of material production at its disposal, has control at the same time over the means of mental production, so that thereby, generally speaking, the ideas of those who lack the means of mental production are subject to it. The ruling ideas are nothing more than the ideal expression of the dominant material relationships, the dominant material relationships grasped as ideas; hence of the relationships which make the one class the ruling one, therefore, the ideas of its dominance. The individuals composing the ruling class possess among other things consciousness, and therefore think. Insofar, therefore, as they rule as a class and determine the extent and compass of an epoch, it is self-evident that they do this in its whole range, hence among other things rule also as thinkers, as producers of ideas, and regulate the production and distribution of the ideas of their age: thus their ideas are the ruling ideas of the epoch." [2]

The false consciousness that is theorized by Marx and exposed in this particular scene of Tressell's book has real effects that continue to plague the working class. Unemployment, underemployment and poverty have characterized the typical working-class existence for the past four centuries; and, rather than being correctly viewed as manufactured realities, have gradually become accepted as an inescapable part of human life on earth. However, they are hardly inescapable or necessary. And this understanding may only be realized through an assessment of the mechanisms of capitalism.

Feudalism to Capitalism, Peasant to Worker

Unemployment has been a staple of the capitalist system since its birth from the remnants of feudalism. In purely mechanical terms, it is easy to see why this is the case. Since capitalism rests on a fundamental relationship between capitalist and worker, whereas the worker's labor is used to extract profit for the capitalist, its foundation is characterized by exploitation. However, this exploitation may only be realized if the masses of people are placed in a position where they are transformed into a commodity to be bought and sold. Since humans are inherently autonomous beings, artificial material conditions must be constructed in order to separate them from the rights of basic necessities, such as housing, food, water, etc., so they are then compelled to offer themselves on the labor market to be used as the owners of the means of production (capitalists) see fit. This is not a natural process; hence, the reason why wage-labor is historically viewed as not much different than chattel slavery. In Capital, Marx tells us:

"But in order that our owner of money may be able to find labour-power offered for sale as a commodity, various conditions must first be fulfilled. The exchange of commodities of itself implies no other relations of dependence than those which result from its own nature. On this assumption, labour-power can appear upon the market as a commodity, only if, and so far as, its possessor, the individual whose labour-power it is, offers it for sale, or sells it, as a commodity. In order that he may be able to do this, he must have it at his disposal, must be the untrammelled owner of his capacity for labour, i.e., of his person. He and the owner of money meet in the market, and deal with each other as on the basis of equal rights, with this difference alone, that one is buyer, the other seller; both, therefore, equal in the eyes of the law. The continuance of this relation demands that the owner of the labour-power should sell it only for a definite period, for if he were to sell it rump and stump, once for all, he would be selling himself, converting himself from a free man into a slave, from an owner of a commodity into a commodity. He must constantly look upon his labour-power as his own property, his own commodity, and this he can only do by placing it at the disposal of the buyer temporarily, for a definite period of time. By this means alone can he avoid renouncing his rights of ownership over it." [3]

This is not an intended or natural element of human life; rather, it is an artificial arrangement constructed by those who wish to own the world. "One thing, however, is clear - Nature does not produce on the one side owners of money or commodities, and on the other men possessing nothing but their own labour-power," explains Marx. "This relation has no natural basis, neither is its social basis one that is common to all historical periods. It is clearly the result of a past historical development, the product of many economic revolutions, of the extinction of a whole series of older forms of social production." [4] The capitalist epoch is surely not the first to base itself on such arrangements, but it is the latest.

The transition between feudalism and capitalism was not seamless, according to Marx, but rested on similar dynamics. "In England," he writes, "serfdom had practically disappeared in the last part of the 14th century. The immense majority of the population consisted then, and to a still larger extent, in the fifteenth century, of free peasant proprietors, whatever was the feudal title under which their right of property was hidden." [5] This period of transition, which was neither feudalistic nor capitalist, facilitated the transformation from an obligatory, formal dependence which characterized the relationship between lord and peasant to an informal dependence that materialized under capitalist relations. "The economic structure of capitalistic society," Marx writes, "has grown out of the economic structure of feudal society. The dissolution of the latter set free the elements of the former." [6]

While the hierarchical dynamics remained intact during this transition, the possibility of forging a collective resistance developed alongside the new relationships that were introduced under capitalism. This was noted by Marx on many occasions, perhaps most clearly in his take on the peasantry in revolutionary France in 'The Eighteenth Brumaire of Louis Napoleon':

"The small peasants form a vast mass, the members of which live in similar conditions but without entering into manifold relations with one another. Their mode of production isolates them from one another, instead of bringing them into mutual intercourse. The isolation is increased by France's bad means of communication and by the poverty of the peasants. Their field of production, the small-holding, admits of no division of labour in its cultivation, no application of science, and, therefore, no multiplicity of development, no diversity of talent, no wealth of social relationships. Each individual peasant family is almost self-sufficient; it itself directly produces the major part of its consumption and thus acquires its means of life more through exchange with nature than its intercourse with society ... Insofar as millions of families live under economic conditions of existence that divide their mode of life, their interests and their culture from those of other classes, and put them in hostile contrast to the latter, they form a class. Insofar as there is merely a local interconnection among these small peasants, and the identity of their interests begets no unity, no national union, and no political organisation, they do not form a class. They are consequently incapable of enforcing their class interest in their own names, whether through a parliament or through a convention. They cannot represent themselves, they must be represented." [7]

This strain in Marxist thought continued for decades. In a 1919 edition of L'Ordine Nuovo, Gramsci remarked on what he perceived as the mentality shaped by the peasant experience in feudal settings:

"The psychology of the peasants was, in such conditions, uncontrollable; real feelings remained hidden, implicated and confused in a system of defence against exploitations, merely egotistical, without logical continuity, materialized in sham indifference and false servility. The class struggle was m ixed up with banditry, blackmail, burning forests, laming livestock, kidnapping women and children, with attacks on the municipality: it was a form of basic terrorism, without steady and effective consequences. Objectively then the psychology of the peasant was reduced to a tiny sum of primordial feelings caused by the social conditions created by the parliamentary-democratic state: the peasant was left completely at the mercy of the landowners and of their sycophants and corrupt public officials, and the main worry in their lives was to defend themselves physically against unexpected natural disasters, against the abuses and barbaric cruelty of the landowners and public officials. The peasant has always lived outside the domain of the law, without a legal personality, without moral individuality: he has remained an anarchic element, the independent atom in a chaotic tumult, held back only by fear of the carabiniere and of the devil. He did not understand discipline; patient and tenacious in the individual struggle to take scarce and meagre fruits from nature, capable of great sacrifice in family life, he was impatient and wildly violent in the class struggle, incapable of posing a general aim and of pursuing it with perseverance and systematic struggle." [8]

Long before false consciousness became a concern within the capitalist working classes, the consensus idea in Marxian circles warned against this "narrow-minded" mentality carried forth from the peasantry of feudal society. While the societal structures between feudalism and capitalism largely remained the same, especially in regards to how the subaltern related to the power structure (peasant to lord, tenant to landowner, worker to capitalist), the individualistic, survivalist posture of the peasant was confronted with the possibility of a collective resistance that would present itself under the newly-formed structures of capitalism, where workers would be corralled together in packs. Gramsci noted this inevitable transition and its effect on consciousness, especially in regards to the working classes in what he described as "capitalistically backward" nations like Russia, Italy, France and Spain:

"In reality large ownership has remained outside free competition: and the modern state has respected its feudal essence, developing juridical formulae such as holding in trust, which maintain in fact the existence and privileges of the feudal regime. The mentality of the peasant has thus remained that of the servant of the soil, who revolts violently against the "bosses" on particular occasions, but is incapable of thinking himself part of a collective (the nation for the owners and the class for the proletarians) and of developing systematic action and permanent revolt to change the economic and political relations of social existence." [9]

With the arrival of capitalism came the reality of a collective struggle and, subsequently, the capability of the peasant-turned-worker "thinking himself part of a collective" - something that, as Gramsci noted, was impossible on the sporadic and disconnected feudal landscape.

Overcoming False Consciousness

"Only if false consciousness is transformed into true consciousness, that is, only if we are aware of reality, rather than distorting it by rationalizations and fictions, can we also become aware of our real and true human needs." - Erich Fromm [10]

As capitalism evolved in the United States, so too did the probability of widespread, working-class consciousness. This was evident throughout the first half of the 20th century, which birthed a radical labor movement that garnered many key victories. However, despite this period of working-class progress, capitalism ultimately prevailed. The late-1900s brought higher concentrations of wealth, tax schemes beneficial to the wealthy, increased inequality, and an overall deterioration of the industrialized working classes which, after fighting for decades to carve out a piece of the pie, were decimated by globalization.

Our new reality is now shaped by crippling and lifelong debt, poverty wages, chronic underemployment and unemployment, and rampant insecurities regarding access to basic necessities. The problems faced by Owen, Crass, and the entire working crew showcased in Tressell's book are the same problems we face now. They are the same fundamental problems faced by working-class people centuries over: a lack of autonomy, a lack of control, and a near-total absence of self-determination. And, ironically, with the onset of globalized capitalism, the ownership class has become more connected than ever, while the working class has become more disconnected than ever. This disconnectedness, and the reversal of many of the hard-fought gains won by organized labor, has created an environment that breeds false consciousness.

The modern, disconnected working class has become less reliant on one another and more susceptible to the corporate culture directed from the top. This hegemonic culture now influences everything from public schooling to advertising and marketing to entertainment to the workplace. Naturally, the isolation and "social dislocation" that has accompanied this culture (and the material conditions shaped by globalized capitalism) "breeds a reactionary form of nostalgia." [11] This cultural effect helps explain the tendencies of members of the working class to embrace divisive (and ultimately self-destructive) ideologies such as racism, misogyny and homophobia, to vote against their best interests, to worship wealth and celebrity culture, and to gravitate toward proto-fascist elements such as the Tea Party. In this sense, the persistence of false consciousness is directed, or at least stimulated, from above. "To deny this," as Michael Parenti wrote, "is to assume there has been no indoctrination, no socialization to conservative values, no control of information and commentary, no limitation of the topics to be considered in the national debate… and that a whole array of powers have not helped pre-structure how we see and define our own interests and options." [12]

False consciousness is, at its core, an ideological problem; but it is shaped by the realities created by capitalism - exploitation, isolation, and dehumanization - as well as the mechanisms that force capitalist culture upon us, mainly derived from the privatization and profitization of elements that influence thought, such as education systems and media. Thus, the hegemonic culture that dominates working-class thought serves as a deceptive foundation whereas the appearance of conscious thought, and even the conscious seeking of knowledge, is not as free-flowing as it appears to those who actively engage in this process. Friedrich Engels explains:

"Ideology is a process accomplished by the so-called thinker consciously, indeed, but with a false consciousness. The real motives impelling him remain unknown to him, otherwise it would not be an ideological process at all. Hence he imagines false or apparent motives. Because it is a process of thought he derives both its form and its content from pure thought, either his own or that of his predecessors. He works with mere thought material which he accepts without examination as the product of thought, he does not investigate further for a more remote process independent of thought; indeed its origin seems obvious to him, because as all action is produced through the medium of thought it also appears to him to be ultimately based upon thought." [13]

Overcoming false consciousness will require a complete rejection of hierarchical relationships from within the working class, especially in regards to education. Since public education is trending in an opposite direction, with highly-structured and authoritative elements being introduced through legislation like No Child Left Behind, programs like Common Core, and privatization efforts centered in the charter school movement, informal programs must develop. This will require interaction. This will require a willingness to discuss difficult topics, and attempts to cut through hardened and callused dissonance, ala Tressell's protagonist, and a rejection of traditional notions of education as being characterized by formal, top-down, dictating interactions. This will require an understanding that "there is no such thing as a neutral educational process," and that "education either functions as an instrument which is used to facilitate integration of the younger generation into the logic of the present system and bring about conformity or it becomes the practice of freedom, the means by which men and women deal critically and creatively with reality and discover how to participate in the transformation of their world." [14] This will require the realization that we are more than just commodities.

Notes

[1] Karl Marx, A Contribution to the Critique of Political Economy (1859). Accessed at https://www.marxists.org/archive/marx/works/1859/critique-pol-economy/preface.htm

[2] Karl Marx, The German Ideology. Part 1: Feuerbach, Opposition of the Materialist and Idealist Outlook, The Illusion of the Epoch. Accessed at https://www.marxists.org/archive/marx/works/1845/german-ideology/ch01b.htm

[3] Karl Marx, Capital: Volume 1, Chapter Six. Accessed at https://www.marxists.org/archive/marx/works/1867-c1/ch06.htm

[4] Ibid

[5] Marx, Capital: Volume 1, Chapter 27. Accessed at https://www.marxists.org/archive/marx/works/1867-c1/ch27.htm

[6] Marx, Capital: Volume 1, Chapter 26. Accessed at https://www.marxists.org/archive/marx/works/1867-c1/ch26.htm

[7] Karl Marx, The Eighteenth Brumaire of Louis Napoleon (1852), Chapter 7. Accessed at https://www.marxists.org/archive/marx/works/1852/18th-brumaire/ch07.htm

[8] Antonio Gramsci, Workers and Peasants. L'Ordine Nuovo, 2 August 1919. Translated by Michael Carley. Accessed at
https://www.marxists.org/archive/gramsci/1919/08/workers-peasants.html

[9] Ibid

[10] Erich Fromm, Marx's Concept of Man, (New York, NY: Frederick Ungar Publishing, 1961), 1-85. Accessed at http://www.marxists.org/archive/fromm/works/1961/man/index.htm

[11] Robert Putnam, Bowling Alone: The Collapse and Revival of American Community (Simon & Schuster, 2000)

[12] Michael Parenti, Dirty Truths: Reflections on Politics, Media, Ideology, Conspiracy, Ethnic Life and Class Power (San Francisco, CA: City Lights Books, 1996), 210.

[13] Friedrich Engels in a letter to Franz Mehring, July 14, 1893. Accessed at https://www.marxists.org/archive/marx/works/1893/letters/93_07_14.htm

[14] Richard Shaull, Preface to Pedagogy of the Oppressed (Paulo Freire). (2000) New York : Continuum

Retracing Toledo's Radical History

By Derek Ide

It is not difficult to sense the alienation and demoralization that impinges upon so many people as they drive through the streets of Toledo, Ohio. These are streets that were constructed to be driven on and nothing else. Unlike many of the cities in Europe, or even some in the United States, it is not a walkable city. The haphazard urban planning, or lack thereof, and the complete lack of any public transit system, with the exception of TARTA buses and private cabs, combine to make Toledo more than inhospitable to those without their own private vehicle. Those who can afford it have spent the past five decades fleeing to outlying suburbs, and those who cannot remain trapped within the confines of a "Little Detroit" which, after the 1970s, has witnessed the gutting of its manufacturing base. Since 2000, Toledo area poverty has risen faster than any other U.S. city. [1] In 2009, nearly 30% of the population of Toledo lived below the poverty line. Over 11% lived below half the poverty line.[2]

In Toledo, isolation is the rule rather than the anomaly. While the Occupy Wall Street movement rocked the United States in 2011, Toledo's Occupy Wall Street was anemic and enervated. Responses exist but they are individual, small-scale, and incapable of drawing the numbers that such dire conditions warrant. Aside from a few key activists and organizers, most individuals, even those who have lived here their whole lives, have taken the state of things for granted, or at least feel powerless to change them. No mass movement exists, in spite of the abject conditions, that people can plug themselves into. Toledo, as someone recently put it, is "a hard place to love if you didn't grow up here."

This has not always been the case, however. Toledo was once a center for economic activity, a hub of material exchange through which goods and labor moved rapidly. More importantly, however, Toledo has a long and radical history, one that has often been hidden away by the quotidian drudgery and daily grind of life. From the 1934 Auto-Lite Strike to the Black Panther Party headquarters on Door St., the city has not always been bereft of a culture of resistance. This once-proud resistance was not only manifest in one of the few general strikes to every rock a major U.S. city, or in the sheer violence and force brought down against the Panthers, it was also located on the campus of the University itself. From UT's Students for a Democratic Society in the early 1970s to the Black Student Union, which spearheaded the divestment movement from South Africa in the mid-1980s, Toledo students have always been engaged in the struggles of the day. The purpose of this article is to recount these struggles, but more importantly to provide as much space as possible to the voices that engaged in them. It should be noted that while what comes below is not an all-encompassing account of every radical initiative and movement in Toledo's history, plenty of which remain to be written about and exceed the knowledge of the author, this is a brief attempt to retrace as much of Toledo's radical history as possible. It is a history that every Toledo worker, student, and citizen should know.

The 1934 Auto-Lite Strike

By 1934, Toledo was in the midst of the depression. While the crisis was astute on the national scale, in Toledo it was catastrophic. Whereas 25 percent of all workers and 37 of all nonfarm workers were unemployed in 1933,[3] Toledo faced an unemployment rate of over 50% in 1934.[4] As Rebecca E. Zietlow[5] and James Gray Pope explain:

Without an economic safety net, people literally struggled to survive. Toledoans told stories about families eating nothing but apples, and burning their furniture to warm themselves during the harsh upper Midwest winters. These conditions were devastating for those workers without jobs, but they also had a profound impact on employed workers. The managers at industrial plants such as the Auto-Lite plant treated unskilled and semi-skilled workers as fungible and disposable.

Over one-third of Toledo's population lived on meager emergency relief during the depression. Willys-Overland employed 28,000 in 1929, out of a total population in Toledo of 290,000. By 1932, it employed only 3,000 people.[6] As Willys-Overland and other automobile plants shut down or significantly reduced production, so too did auto parts manufacturers, a significant component of Toledo's industrial base.

The Electric Auto-Lite Company, an auto parts manufacturer, was the site of one of the most heroic and historic strikes in not only Toledo, but U.S. history. At Auto-Lite, workers were treated contemptuously, and supervisors exercised arbitrary power over all aspects of their work life. Although Congress had enacted the National Industrial Recovery Act (NIRA) in 1933 which, under Section 7(a), provided workers with the right to organize, Roosevelt's insertion of merit clauses "granted employers the right to establish open shops and discriminate against militants." [7] As Frances Fox Piven and Richard Cloward explain:

Early in 1934, demands for union recognition at the Electric Auto-Lite Company and several smaller firms were rejected, and 4,000 workers walked out. The workers returned to the plants after federal officials secured a commitment from the employers to "set up a machinery" for negotiations. But Auto-Lite then refused to negotiate, and a second strike was called on April 11. Only a minority of the workers joined the walkout this time, however, and the company determined to keep its plant open, hiring strikebreakers to reach full production.

Toledo was a stronghold of A. J. Muste's radical Unemployed Leagues, and the Musteites rapidly mobilized large numbers of unemployed workers to reinforce the picket lines. On April 17 the company responded by obtaining a court order limiting picketing and prohibiting league members from picketing altogether. But the Musteites decided to violate the restraining order, and some local Communists joined in with the slogan "Smash the Injunction by Mass Picketing" (Keeran, 168). A handful of militants then began picketing. They were quickly arrested, but upon their release, they returned to the picket lines, their numbers now enlarged by workers emboldened by the militants' example. More arrests and further court injunctions seemed to only galvanize the strikers, and the numbers of people on the picket lines grew larger day by day. Sympathy for the strikers in Toledo was such that the sheriff could not use the local police to protect the strikebreakers and instead deputized special police, paid for by Auto-Lite.

By May 23, the crowd massed outside the plant had grown to some 10,000 people, effectively imprisoning the 1,500 strikebreakers inside the factory. The sheriff then decided to take the initiative, and the deputies attacked. The crowd fought back, several people were seriously wounded, and a contingent of the Ohio National Guard was called in. Armed with machine guns and bayoneted rifles, the Guardsmen marched into the Auto-Lite plant in the quiet of dawn and succeeded in evacuating the strikebreaking workers. But the next day, the crowd gathered again, advanced on the Guardsmen, showering them with bricks and bottles. On the third advance, the Guard fired into the crowd, killing two and wounding many more. The crowd still did not disperse. Four more companies of Guards men were called up, and Auto-Lite agreed to close the plant. Then, with the threat of a general strike in the air, the employers finally agreed to federal mediation which resulted in a 22 percent wage increase and limited recognition for the union. [8]

The AWP skillfully utilized the language of slavery and emancipation to inspire the strikers:

Its banner equated the end of chattel slavery in 1865 with the end of wage slavery through collective action in 1934. AWP flyers produced at the time made this connection more explicit. One leaflet proclaimed, "Toledo workers will not work at the points of bayonets like craven slaves." Another declared, "[T]he workers of Toledo . . . have starved and sweated and cried in their misery while waiting for this hour. Now they have shaken off the chains of their masters." A leaflet produced by the Auto Workers Union Organization Committee agreed, "It now remains the task of completely closing this slave pen of Minniger."[9]

One of the most important elements of the strike was the influence of A.J. Muste, a leader of the American Workers Party, who helped organize the Lucas County Unemployed League.[10] Charles Bogle explains the vital importance of this development:

The strike would have ended… had it not been for the actions of a committee of Auto-Lite workers who asked for assistance from the Unemployed League. The Unemployed League, affiliated with the socialist American Workers Party (AWP), had formed in 1933 to organize mass actions by Toledo unemployed workers to obtain cash relief. More important for the fate of the Auto-Lite striking workers, the League's policy was to unify the employed and unemployed. [11]

This policy of unification was a vital component of the strike, and allowed a limited, plant-based battle to transform into one of the most important industrial city-wide struggles in U.S. history.[12]

The success of the Toledo strike was a significant factor that contributed to the formation of the United Auto Workers, one of the few remaining unions of any significance in the United States. More importantly, it acted as a catalyst for passage of the National Labor Relations Act (NLRA) of 1935, which codified the legality of trade unions, collective bargaining, elected labor representation, and the right to strike. Although the plant was demolished in 1999, the entrance was left standing, with an inscription that reads: "This stone doorway will stand forever as a symbol of the Toledo Auto-Lite workers' commitment, loyalty, and solidarity, which enabled them to break with the past, and enter a better future." As Zeitlow and Pope maintain, "That future has now receded into the past, and the example of the Auto-Lite strikers affirms to a new generation that with commitment, loyalty, and solidarity, a better future can be won."[13]

National Committee to Combat Fascism (Black Panther Party)

On July 25, 1967, Dorr Street, dubbed "Black Mecca" for the array of black-owned shops, restaurants, and nightclubs, had been the site of a large-scale uprising that came on the heels of an even larger rebellion in Detroit two days prior.[14] One witness to the riots proclaimed "The reasons for the riots, I think, were to achieve some kind of justice - we just didn't have it all the time." [15] Three years later, an organization had arisen to politically direct the energy and frustration manifest in 1967. By 1970, the 1300 block of Dorr Street was home to the Toledo chapter Black Panther Party headquarters. The Toledo Panthers, at this time operating under the name the National Committee to Combat Fascism (NCCF), had organized a nascent Free Clothing program and [16] a Free Breakfast program, in step with other chapters across the country.

Already at this time across the country, Black Panther Party headquarters had been attacked and raided, and the 21-year old martyr Fred Hampton had been pulled out of his bed and shot in the head less than a year before. In the early morning hours of September 18, 1970, a man approached Toledo Police Officer William Miscannon, stationed outside the Party headquarters at Junction and Dorr. The stories differ as to what happened next. One source suggests Miscannon asked the man what was going on, to which the man responded "This is what's going on," before pulling a silver handgun and shooting Miscannon in the head.[17] Yet another source suggests the man approached and shouted "Hey baby, I've got something for you!" before shooting.[18] Either way, Miscannon was killed and the murder was blamed on local Panther John McClellan. Although McClellan was charged, two different trials ended in hung juries, and no new evidence was able to be presented against him.

The Toledo Police, however, took no qualms in using the killing as a pretext for attacking the Panther headquarters. Within hours, some forty officers surrounded the headquarters and "riddled… [the] Panther headquarters with bullets during a five-hour battle," in what Mike Cross, the Panther defense minister in Toledo, called "an unprovoked attack by racist pigs."[19] The guns were apparently procured by John McClellan's brother, Larry, who took "about 20 rifles" from a shooting range at Bowling Green State University, near Toledo. [20] Sixteen year old Troy Montgomery was seriously wounded. When the ambulance arrived, the police refused to allow the black ambulance driver Leroy Hardnett to take the boy to the hospital. Hardnett reported at the time that "They told us to leave him in the streets and die."[21] The boy was eventually taken to Mercy Hospital and survived. The Panthers stockpile of weapons was confiscated by the police. The assault did not end that night, however. One Black Panther article titled "Toledo Piggery Continues" detailed how "Two members of the Toledo N.C.C.F. (brothers Conrad and Kenneth) were kidnapped, while on their way to the office, and illegally held for eight days in the Toledo Pig Pen. The brothers were unable to make a phone call to let anyone know what had happened to them." [22] Although Panther operations were hampered by this attack, this was not the end of the Toledo chapter.

The thugs of the state continued their war on Toledo's Panthers. On November 28, 1970 an article entitled "The Dungeon" appeared in the Black Panther party newspaper exposing the conditions that prisoners faced in Toledo's Lucas Country jail. The report was signed by ten prisoners, five Black and five white, and immediately they faced retaliation for their political commitments to the struggle. This excerpt from the Black Panther detailing the attack deserves to be quoted at length:

The Inmates knew that their lives would be in grave danger because of this, but they felt that getting the truth to the people about what was happening in this fascist pig pen was much more important than their own personal safety. This was clearly shown in the last paragraph of the article which stated "All the men (five Black and five White) incarcerated in this jail's maximum security section have signed this report being well aware of the physical and mental repression that will follow from the jail's administration. They wish the people to know that no matter what happens to them they have stood up and are resisting as men."

Tuesday Dec. 8. 1970, under pretense of conducting a weapons search, more than 25 racist pigs and their bootlicking flunky nigger pigs, launched an unprovoked, brutal attack against the men in the maximum security section of the Lucas County Jail. When the pigs started brutalizing and beating them, the brothers righteously began to defend themselves. Within minutes the rest of the inmates on all three jail floors began to join in the resistance against the pig deputies. For 2 hours the prisoners of the dungeon resisted heavily armed pigs from the Sheriffs Dept. and city Police… 17 prisoners were beaten, stripped of their clothes and sent to the hole (A 10' × 12' windowless room in the basement). Included among them was a sick 73 year old Black man and two members of the N.C.C.F., John and Larry McClellan. All 17 prisoners remained in this room for 2 days and were literally covered with their own wastes. The only food they received was one cup of water and one slice of bread a day per person.

…[On] Thursday Dec. 10, incarcerated N.C.C.F. member John McClellan, accused of offing racist pig Miscannon Sept. 18th, 1970, stopped a pre-trial motion in his defense to expose the conditions that he and 16 other men had been subjected to for over 48 hours in the hole. He refused to participate any further in the court proceedings until the cruel and unusual punishment was immediately ended.

Presiding Judge, Wiley, adjourned the court and visited the jail along with newsmen and attorneys, from 1:30 P.M. to 2:30 P.M. When court was re-convened he ordered that John McClellan released from the hole immediately. This brother again showed that he is a true servant of the people when he said. "The constitutional rights of the other 16 men are also being violated. I will not leave those other men in the hole to die. If we are not all released together, then I will return to the hole with my friends, many, who are sick and will die it not released immediately." Judge Wiley then ordered Sheriff Metzger to release all the men held in the hole. This racist pig Judge had seen with his own eyes, the degradation of 17 naked human beings covered with their own wastes and visibly very sick. Yet, all he could relate to was releasing John McClellan. This brother exposed the true-nature of this pig and backed him up against the wall, where in order not to show his fascist nature, he had to recognize the rights of the other prisoners held in the hole…

Now a prisoner can remain in the hole for only 12 hours at a time and then be released for 6 hours before returning again. Still this rule doesn't stop his said constitutional rights against cruel and unusual punishment from being violated. It just determines how long his rights will be violated.

A prisoner will still he stripped naked, forced to sleep on a concrete floor if its not too crowded, have no toilet facilities or running water and receive bread and water to eat. Actually, nothing has changed regarding the way the prisoners are treated in the hole. only the length of time they are to be kept in there. To end the sham. Pig judge Wiley had the nerve to dink the following statement' "This is an unsatisfactory solution, but I had to balance the necessity for security against a minimum of decency."

The pigs have always put their security and profits before the desires and needs of the people. The crimes being committed daily in the "Dungeon" are comparable to the horrendous war crimes committed by the Nazis against their victims in the concentration camps.

Today, the barbarous ruling class of America far surpasses the Nazis in Germany. They are making and implementing plans for the total extermination of Black people in America, and waging a genocidal war on the rest of the poor and oppressed in the world. We are not going to rid ourselves of the brutality and murder waged daily against the people of the world by the Nixon-Agnew-Mitchell-Hoover fascist clique, unless all people rise up and begin to wage revolutionary armed struggle within every oppressed community of the world. In essence, we must relate to the social and political ideology of inter-communalism so that all people of the world can no longer be manipulated along racial, cultural, and national lines by the fascists of America.

ALL POWER TO THE PEOPLE!

THROUGH REVOLUTIONARY INTERCOMMUNAL SOLIDARITY!

Toledo N.C.C.F.

1334 Dorr St.

Toledo, Ohio[23]

In stark contrast, The Byran Times presented the "disturbance" as an "attempt to free two Black Panthers." This revolt was "quelled" by the "authorities."[24] But the Panthers and McClellan were not demonized by the Black community, despite how the press sought to malign them. Indeed, in July of 1972 the Toledo NCCF held a "Community Day of Justice." Some "6,000 people, mostly Black, attended Community Day for Justice to show support for Comrade John McClellan." The John McClellan Free Food Program distributed "1,000 free full bags of groceries (with a chicken in every bag)" and over 1,000 Sickle Cell Anemia tests were given. A "massive number" of people were registered to vote. When the bags of food arrived, "everyone felt as one beautiful, Black sister did: 'Lord knows, those Panthers are really going to do it'." [25]

Campus Activism from the Black Student Union to Students for Justice in Palestine

As the Black Panthers were organizing on Door Street, just a mile or so west students were organizing around a variety of issues on the "Toledo University" (now University of Toledo) campus. Both the Black Student Union as well as the Students for a Democratic Society became politically active at the college. Toledo's SDS, while small, ruffled a lot of feathers on campus and were even the target of extensive FBI surveillance. Recently declassified documents reveal their tactics were extremely dirty. One COINTELPRO operative, Gene Foder, recalled how he "would attend an organization's meeting and wait for speakers to denounce law enforcement, as they often did. Then, with a burst of apparent outrage, he would rise and point out his fellow undercover officers. The groups would kick out those officers and often welcome Mr. Fodor into their ranks, grateful for his watchful eye and unaware that he too was a part of the system they opposed."[26] The BSU, for its part, was also quite militant. At one point it occupied University Hall, the iconic building on campus,[27] in the aftermath of the the Jackson State shooting:

At 6:00 a.m. on Monday May 18, Black students blocked the entrances to University Hall for five hours. A crowd of about 2,000 gathered when they could not get into the building to attend classes, some angry and some supportive of the BSU. Their demands, very similar to those of Black students at San Francisco State College and Cornell, were as follows: "$200,000 for a Black studies programs, manned and directed by Blacks; the hiring of a full time coordinator of Black studies; first priority placed on hiring of Black professors in each department; a Black student enrollment commensurate with the population of Blacks in the City of Toledo; a minimum of three Black graduate students in every department" ("The Declaration," 1970, May 18). These demands arose after the BSU perceived that the UT administration did not respond to the deaths at Jackson State.[28]

The BSU continued this confident, militant approach throughout the 1980s. In 1985, at the age of 43 years old, co-founder of the Black Panther Party Huey P. Newton broke ten years of silence by addressing a crowd at the University of Toledo. He had been invited by the University of Toledo Black Student Union (BSU), which was in the midst of its struggle to get the University of Toledo to divest from its holdings in apartheid South Africa. He told the audience he had "thought BSUs had gone the way of my organization of SNCC," but instead that explained that the BSUs represented a "structure to start to build a national organization freedom." He maintained that students in general, and black students in particular, were becoming politically conscious largely through the struggle against apartheid in South Africa.[29] The BSU also brought former Black Panther, Communist Party leader, and prison scholar Angela Davis to campus. She, like Newton, engaged the issue of the divestment movement on campus: "I hear that there is a pretty strong divestment movement on this campus… Well, I think that you should keep on pushing for full and immediate divestment." [30]

The BSU at UT in the 1980s was at the forefront of radical student politics with leaders like Mansour Bey who not only brought figures like Newton and Davis to Toledo, but militantly challenged the administration on issues like divestment from South Africa, even in the face of intimidation. [31] Throughout 1984 and 1985 the BSU brought anti-apartheid activists and native South Africans to campus to raise awareness and in June 1985 circulated a divestment petition. In October 1985 the BSU organized a march with over 100. Chants like "Long Live the African National Congress!" and signs such as "Apartheid is dead… may it rest in hell" characterized the march. [32] When protests alone did not accomplish their goals, the BSU erected mock shanties in protest, calling for total divestment. As The Blade reported at the time, the student action "placed TU [UT] on the crest of the biggest wave of protests on college campuses since the Vietnam War."[33] The shanty they erected was not removed until Mansour Bey, president of the BSU at the time, had secured a meeting with UT's president James McComas, who explained that UT would make its position on divestment public in three weeks.

Throughout this entire process the university administration harassed and threatened BSU leaders. As one statement explains, on the same day that they finally received a telephone call from the president in July of 1985, another call "came into the Black Student Union to tell us that campus security was investigating the records" of BSU leaders, including president Anthony Muharib and vice-president Mansour Bey. Then, Chief of Campus security Frank Pizzulo confronted Mansour Bey about some "old bench warrants" on the activists, which they claimed may "prove embarrassing if we, as student leaders were to be arrested." The BSU's July 31, 1985 remained defiant, however:

What we are concerned with here today is the double standard that prompted today's press conference [regarding divestment]. On the one hand, James [McComas] establishes a committee to study U.T.'s investments in South Africa, while on the underhand, the U.T. Security Forces launches an investigation and surveillance of those campus activists who have led the campaign to raise the political and moral consciousness of U.T.'s students and faculty… We are also very concerned with the overall implications of these police tactics which remind us of the very oppressive and inhumanitarian policies of the South African government which we are protesting against. Why these police tactics? Are they intended to intimdate all students into backing away from getting involved in controversial and unpopular issues? If so, it is not working! Therefore, we are today calling upon the support of the progressive elements of the Toledo community to stand with the Black Student Union in solidarity for our right as students and citizens of the United States to express our constitutionally guaranteed rights of freedom of speech. And furthermore, that we be permitted to continue our campaign to educate and motivate this campus to speak out on the evils and injust practices of the Botha regime in South Africa. Finally, we demand that the university's campus police forces cease and desist their harassment, investigations, and surveillance of U.T. students.[34]

In the end the University of Toledo convened an ad hoc South African Investments Study Committee that eventually called for divestment from South African apartheid. By August 1989, on the midnight hour of the apartheid regime, UT and two related private organizations completed their divestment from South Africa, totaling some $4.7 million in investments.[35]

Today the BSU is a far cry from the militant organization of the 1980s. Instead, some of the BSU's responses to the rampant murder of young black men has been paltry, acquiescent, and cowardly, not to mention their refusal to challenge US imperialism and militarism. [36] Part of this stems from the social composition of the current Black Student Union. In 2014 the BSU president refused to sign on to a statement linking the #BlackLivesMatter movement with Israel's summer assault on Gaza. The president of the BSU cited that with four of seven of their executive board members serving in armed forces via the University of Toledo's ROTC program, the BSU could not critique US policies. UT itself has recently been "recognized as a top school for military education,"[37] with one of the categories of qualification being "military culture," as can be obscenely witnessed by the disproportionate amount of students roaming the campus in their fatigues and the various training and combat simulation drills that regularly occur on campus grounds.

The BSU is not alone in this transformation from radicalism to acquiescence, however. The Latino Student Union, with radical Mexican-American working class roots, has largely devolved into a social organization that occasionally parrots US propaganda against radical states in Latin America. In 2014, for instance, the LSU become the marionette of a small but influential group of Venezuelan expats at the University of Toledo when they willingly spread vicious lies against the Venezuelan state.[38] The malicious campaign of propaganda continued in 2015, with one prominent Venezuelan student calling for US sanctions against her own country in an effort to oust Nicolas Maduro, the inheritor of Hugo Chavez's legacy, and the radical PSUV.[39] To combat this a collective of students interested in challenging the narrative of the powerful and privileged Venezuelan elites came together to form the University of Toledo Friends of Venezuela Society. Their first public statement called for "Hands off Venezuela, no to sanctions":

Aside from the delusions of wealthy Venezuelan expatriates in Toledo and other U.S. cities, there is nothing the Venezuelan government has done that warrants sanctions. The primary reason they want to apply sanctions is because Chavez, Maduro, and the PSUV have threatened both the cupidity of the ruling class in Venezuela and challenged US hegemony in the region. As scholar George Ciccariello-Maher has argued in Jacobin magazine, "While the Venezuelan opposition in Venezuela is almost as delusional as the Venezuelan self-exiles in Miami [or Toledo], there's one big difference: opposition leaders on the ground have to live with the consequences of their catastrophic decisions… [Thus] while radical right-wingers in Florida [or Ohio] may be celebrating the sanctions, it would be suicidal for the opposition in Venezuela to do the same. They would simply prove what Chavistas already believe: that they are treasonous lapdogs of imperial power."

Indeed, students at UT and people of conscience should not fall for the narrative espoused by "treasonous lapdogs of imperial power." It is imperative, now more than ever, that progressive forces here in the US and around the world stand up and say "No to Sanctions!" and "Hands Off Venezuela!" Within just over a week four million Venezuelans signed a petition condemning sanctions against their country. We ought to listen to the millions of urban workers and campesinos, not the spawn of the elite here at UT.

Perhaps the most important political development on UT's campus in the past few years, however, has been the advent and augmentation of the Palestine solidarity movement. Inspired by the upsurge in Palestine solidarity organizing around the country, a group of students came together to form Toledo's first organization dedicated to Palestinian solidarity in the summer of 2011. After four years of organization, education, and agitation on the issue, UT Students for Justice in Palestine led one of the most high profile divestment campaigns in the country. Calling on UT to divest from corporations that profited from the occupation of Palestine, UTSJP spearheaded an initiative modeled on the BSU's successful anti-apartheid divestment initiative. [40] In September, 2014 UTSJP paired with UT's Student African American Brotherhood to celebrate the resistance to police violence in Ferguson and the resistance to Israeli occupation in Gaza. Furthermore, they called "for the immediate end to police militarization and violence aimed at black communities in the U.S. and an immediate cessation of the $3 billion provided to Israel annually by our government to oppress the Palestinian people."[41]

By early 2015 UTSJP had pushed divestment to the forefront of campus life. In what was called "the craziest stories we've ever reported" by prominent commentator Phillip Weiss, the UT administration and Student Government originally colluded to shut down the UT Divest movement in a kangaroo court that ruled divestment "unconstitutional."[42] After a massive campaign led by a strong coalition of student groups at UT and solidarity organizations from around the country, the Student Government was eventually forced to reverse its position and voted 21 to 4 in favor of divestment on March 3, 2015.[43] Just over a month later, in late April, UT Divest won a major victory in the form of a student-wide referendum in which 57.13% of students voted to divest. Despite all of this, the university has refused to divest against the will of a majority of its students. As UTSJP's post-referendum victory letter explains, however, the struggle continues:

We do not believe divestment is "contentious" or "incredibly difficult." Society's intolerable injustices do not require the search for a full consensus on what perfect justice looks like. We support divestment because we believe in human rights and international law. We believe UT should strive to actually implement its ethical and moral commitments, and adhere to its own mission statement of "improving the human condition." The majority of UT students agree with us. #UTDivest has created a movement on campus, a movement so resilient that it will continue to grow, to learn, to evolve, and to win. We will continue to work with and organize alongside all organizations that support social justice, and will struggle to ensure that UT is a place where human life is more important than profit. Consciousness has been raised, bodies have been moved, hearts and minds have been won. The arc of the moral universe is long, but it bends towards justice. #UTDivest will continue to move forward in the struggle for justice. [44]

The 2005 Toledo Rebellion and #BlackLivesMatter

One of the moments Toledo captured national media attention was in 2005 when a small group of neo-Nazis from outside of Toledo came to the city, ostensibly protest "crime." The neo-Nazis successfully utilized the state security apparatus to protect and shield themselves from mass popular resentment, invoking first amendment rights in order to acquire police protection. Hundreds of antiracists forced the city to cancel the attempted march by the neo-Nazi group, called the "National Socialist Movement," through a mostly black neighborhood in North Toledo. Instead, hundreds of residents faced off with 15 Nazis standing in "formation" on the lawn of Woodward High School. After escorting the neo-Nazis away from the anti-racist demonstration, riot police clashed with local residents angry over the neo-Nazi presence and the police protection provided by the city of Toledo. These clashes made national headlines. The city spent over $100,000 protecting the Nazis in 2005. As one local community activist, Washington Muhammad, explained at the time: "Everybody else does without a police escort. The Nazis should have had a banner behind them that said, 'Sponsored by the City of Toledo.'" [45] Anger spilled over into a small uprising, with some shops and local establishments being broken into and looted. Many of the black youth who clashed with police were arrested and sentenced, some for prison terms. In all some 114 protesters were arrested, with charges ranging from "assault, vandalism, failure to obey police, failure to disperse and overnight curfew violations." [46] The neo-Nazis were not only protected by the city of Toledo, they were successful in using the repressive apparatus of the state to arrest and then imprison black youth.

A decade later, on the tenth anniversary of their original visit, the same neo-Nazi organization, this time with a few more members, decided to attempt the same routine as before. This time, however, the city of Toledo confined them to a small section of downtown Toledo, and all of the surrounding blocks were shut down. Hundreds of on-duty, over-time, and volunteer police officers protected the small group of neo-Nazis. A highly militarized riot squad had dozens of police, some armed with assault rifles. These riot police were paired with hundreds of regular police officers. Armored vehicles were present, as well as an elaborate identification system that required facial photographs of any individual entering the area near the neo-Nazis. Although no clashes took place this time, largely due to the efforts of local organizers who held a well-attended Black Lives Matter Day in a separate location, the city of Toledo spent some $76,000 in overtime pay to protect the Nazis.[47]

Thus, the tactics of the neo-Nazi groups who came to Toledo suggest that these small extremist organizations make full use of the resources of the repressive state apparatus. The tentacles of the state not only shield the racists from popular anger, they are also used, as in 2005, to assault targeted populations and further the strategic goals of the neo-Nazis. Thus, as one local organizer proclaimed after the 2015 visit, there were around 300 fascists in Toledo that day; only 25 of them were neo-Nazis.

It is not coincidental that both visits by the Nazis were preceded by events in which the Toledo Police Department were involved in the deaths of black men. In February of 2005 TPD had electrocuted 41-year-old Jeffery Turner to death after shocking him nine times with a taser. His crime had been "loitering" near the Art Museum. Two years later a judge promptly dismissed the lawsuit his family brought against the TPD. [48] In March, 2015 34 year-old Aaron Pope died under police custody. Karen Madden, Pope's mother, explained that the police did not call for an ambulance and used excessive force against Pope. "I want justice. This has gone on too long," she exclaimed, her words not unlike those of the many mothers who have lost their sons to police violence.[49] The TPD is not alone in exercising immense state violence against black bodies. In Ohio alone many high-profile murders of black men and boys have occurred including John Crawford in Beavercreek, 12 year-old Tamir Rice in Cleveland, Samuel DuBose in Cincinnati, among others. The first two had been holding toy guns, the later was stopped in traffic for not having a front license plate. All were murdered in "unprovoked attack by racist pigs," to harp back to the language of the Toledo Panthers. In the United States a black person is murdered every 28 hours by police. By early June some 500 people had been killed by police in 2015 alone, nearly 30% of them black.[50] In response a collective of Toledo residents and long-standing community activists have formed the Community Solidarity Response Network. CSRN has been on the forefront of challenging police violence against black communities in Toledo.

Conclusion

In summation, then, Toledo is not without its radicalism. Toledo has been the site of social, economic, and political struggle for decades. From the Auto-Lite Strike to #BlackLivesMatter, the Palestine Solidarity movement to the Black Panthers, those of us residing in Toledo have a prodigious amount of inspiration to draw from. Toledo is represents more than just social isolation and neoliberal deindustrialization. Toledo is also the Polish, Hungarian, and Italian immigrant workers who led the Auto-Lite strike, the Black prisoners and "lumpen-proletariat" that formed the Black Panthers and fought back against state repression, the activists who stood alongside their South African counterparts to end apartheid in South Africa, the Palestinian students in the diaspora who fight Israel's occupation. It is them and so much more. As the great Marxist historian and professor at the University of Toledo proclaimed in his final speech at UT: "We have the World to gain, the Earth to recuperate."[51] We in Toledo have always been and must continue to be part of the struggle to recuperate the Earth.

Notes

[1] http://www.toledoblade.com/Economy/2011/11/03/Toledo-area-poverty-rate-worst-in-U-S.html

[2] http://www.city-data.com/poverty/poverty-Toledo-Ohio.html

[3] http://www.econlib.org/library/Enc/GreatDepression.html

[4] See Zeitlow and Pope, 843.

[5] University of Toledo, College of Law.

[6] http://libcom.org/history/us-industrial-workers-movement

[7] http://www.wsws.org/en/articles/2009/05/tole-m27.html

[8] http://libcom.org/history/us-industrial-workers-movement

[9] See Zeitlow and Pope, 846-7.

[10] On the divide between the Musteites and the Communists, and the role of radical workers in the strike, see Roger Keeren, The Communist Party and the Auto Workers Unions. https://libcom.org/history/communist-party-socialists-during-1934-toledo-auto-lite-strike

[11] http://www.wsws.org/en/articles/2009/05/tole-m27.html

[12] For more on the Auto-Lite Strike and other struggles during the period, see Irving Bernstein, Turbulent Years: A History of the American Worker, 1933-1941.

[13] See Zeitlow and Pope, 854.

[14] Patrick Dyer, http://socialistworker.org/2007-2/639/639_10_Detroit.shtml

[15] http://www.toledofreepress.com/2006/08/30/residents-recall-dorr-streets-black-mecca-days/

[16] https://iheartthreadbared.wordpress.com/2011/10/17/body-and-soul/

[17] http://www.toledoblade.com/Police-Fire/2007/02/21/Toledo-police-officer-killed-in-1970-shooting.html

[18] The Times - Sep. 18, 1970, http://news.google.com/newspapers?nid=1665&dat=19700918&id=wxsaAAAAIBAJ&sjid=iCQEAAAAIBAJ&pg=5985,3714699

[19] The Times - Sep. 18, 1970, http://news.google.com/newspapers?nid=1665&dat=19700918&id=wxsaAAAAIBAJ&sjid=iCQEAAAAIBAJ&pg=5985,3714699

[20] The Bryan Times - Dec 9, 1970

[21] The Times - Sep. 18, 1970, http://news.google.com/newspapers?nid=1665&dat=19700918&id=wxsaAAAAIBAJ&sjid=iCQEAAAAIBAJ&pg=5985,3714699

[22] http://www.negroartist.com/writings/BLACK%20PANTHER%20NEWSPAPERS/5%20no%207.htm

[23] http://www.negroartist.com/writings/BLACK%20PANTHER%20NEWSPAPERS/5%20no%2030.htm

[24] The Bryan Times - Dec 9, 1970 - http://news.google.com/newspapers?nid=799&dat=19701209&id=nVEwAAAAIBAJ&sjid=TVIDAAAAIBAJ&pg=3745,4165846

[25] http://www.negroartist.com/writings/BLACK%20PANTHER%20NEWSPAPERS/8%20no%2021.htm

[26] http://www.toledoblade.com/Police-Fire/2012/07/15/Surveillance-records-from-60s-70s-found.html#IVhTrVSb05tOu1gs.99

[27] For more on University Hall from one of Toledo's most radical professors, see Peter Linebaugh, http://www.counterpunch.org/2014/05/16/how-did-we-get-here-university-hall-at-this-point-of-time-the-anthropocene/

[28] For more on unrest at UT in the 1965-72 period, see Matthew J. Deters, Preventing Violent Unrest: Student Protest at the University of Toledo, 1965-1972. MA Thesis, University of Toledo.

[29] Newspaper clipping, "Newton Ends 10-Year Silence With Talk at TU," Canaday Center, University of Toledo.

[30] Newspaper clipping, John Nichols, Toledo Blade, Canaday Center, University of Toledo.

[31] Add in BSU Statement here.

[32] Newspaper clipping, "Over 100 protestors march against apartheid," The Collegian.

[33] Newspaper clipping, Tanber, "TU Students Erect Shanty in Protest of Apartheid, Ask Total Divestitute," The Blade.

[34] Press Statement, Black Student Union, July 31 1985. Canaday Center.

[35] Newspaper clipping, "UT, 2 groups divest holdings in South Africa," The Blade.

[36] It should be noted that this may be shifting in the 2015-6 academic year, as the BSU is under a new leadership that appears more willing to confront this issue head-on.

[37] http://independentcollegian.com/2015/01/28/news/ut-recognized-as-a-top-school-for-military-education/

[38] http://www.hamptoninstitution.org/latino-student-organizations.html#.VcQHJPlVhBc

[39] http://independentcollegian.com/2015/03/25/opinion/letter-venezuela-benefits-from-sanctions/

[40] For a resevior of video, statements, etc. on #UTDivest, see http://utdivest.blogspot.com/

[41] http://independentcollegian.com/2014/09/16/opinion/letter-to-the-editor-solidarity-for-human-rights/

[42] http://mondoweiss.net/2015/02/divestment-officials-federation

[43] https://www.youtube.com/watch?v=SkT2RTndz-c

[44] https://www.facebook.com/UTDivest/posts/866974650049245

[45] http://socialistworker.org/2005-2/562/562_12_Toledo.shtml

[46] http://www.foxnews.com/story/2005/10/16/neo-nazi-march-causes-riots/

[47] http://www.toledonewsnow.com/story/28883577/city-neo-nazi-rally-cost-taxpayers-76767-in-overtime?clienttype=generic

[48] http://www.toledoblade.com/Courts/2012/05/16/Taser-death-suit-dismissed.html

[49] http://www.toledoblade.com/Police-Fire/2015/03/30/Family-of-Toledo-man-who-died-in-police-custody-seek-answers.html#EiPD6bCw4z4b9qHk.99

[50] http://www.theguardian.com/us-news/2015/jun/10/the-counted-500-people-killed-by-police-2015

[51] http://www.counterpunch.org/2014/05/16/how-did-we-get-here-university-hall-at-this-point-of-time-the-anthropocene/

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…

On the Front Lines of Class War: Why the Fight for a Livable Wage is Everyone's Fight

By Colin Jenkins

"There's class warfare, all right, but it's my class - the rich class - that's making war, and we're winning."

- Warren Buffett (2006)

In the spring of 2004, amid the thaw of a frigid New York City winter, a brave group of Starbucks baristas began organizing. Like most service-sector employees in the United States, they were faced with the daunting task of trying to live on less-than-livable wages. Inconsistent hours, inadequate or non-existent health insurance, and less-than-dignified working conditions paled in comparison to their inability to obtain the most basic necessities. Apartment meetings, backroom discussions, and after-hours pep talks - all fueled by a collective angst - culminated into a sense of solidarity, the natural bond that occurs when workers take the time to realize their commonalities and shared struggle. On May 17, 2004, they officially announced their affiliation with the Industrial Workers of the World, an all-encompassing union with an impressive history of labor activity in the US. A petition for unionization followed suit. Their demands were simple: Guaranteed hours with the option for fulltime status, an end to understaffing, a healthier and safer workplace, and increased pay and raises.

"Solidarity Unionism," Grassroots Organizing, and the Formation of a New Front

It is only fitting that such a daring endeavor would fall under the banner of the IWW. Proudly asserting itself as "One Big Union" and "A Union for All Workers," the "Wobblies" shun hierarchical and highly-bureaucratic union models that have dominated the American labor scene for much of the past half-century, instead promoting and utilizing direct action that is member-run and member-driven. Deploying what they refer to as "solidarity unionism," as opposed to "business unionism," the preamble to the IWW's constitution echoes an old-school, militant, trade-union tone, boldly (and correctly) proclaiming, "The working class and the employing class have nothing in common. There can be no peace so long as hunger and want are found among millions of the working people" - a far cry from the timid and capitulating modus operandi of the modern adaptation. However, it is not just a much-needed infusion of labor militancy that makes the IWW attractive, it is its grassroots approach to labor organizing. In a post-industrial landscape that is overrun with underemployment, the IWW's model represents accessibility and a sense of empowerment for disconnected workers who find themselves on virtual islands - outside the potentially radical confines of a traditional shop floor. And when considering that wages have either dropped or remained stagnant in the midst of ever-growing costs of living over the past 30 years, it is no surprise that American workers are reaching their collective breaking point and seeking refuge in the form of a shared struggle.

After decades of a disastrous neoliberal agenda that has placed the American working class in an all-out sprint to the bottom, the growing needs of low-wage workers coupled with the "wobbly way" to create a perfect storm. As such, the Starbucks Union captured a vibe and sparked a movement. 2007 saw the arrival of Brandworkers, "a non-profit organization bringing local food production workers together for good jobs and a sustainable food system." Following a similar grassroots blueprint, the NYC-based organization was founded "by retail and food employees who identified a need for an organization dedicated to protecting and advancing their rights," and stands on "a simple principle: that working people themselves, equipped with powerful social change tools, were uniquely positioned to make positive change on the job and in society." Their direct-action, "Focus on the Food Chain (FOFC)" initiative specifically targets "the rapid proliferation of sweatshops among the food processing factories and distribution warehouses that supply the City's (NYC) grocery stores and restaurants" and that of which "increasingly relies on the exploitation of recent immigrants of color, mostly from Latin America and China." In an unprecedented effort, FOFC "creates space for the immigrant workers of NYC's industrial food sector to build unity with each other, gain proficiency in the use of powerful social change tools, and carry out member-led workplace justice campaigns to transform the industry." Ultimately, "Focus members and their allies are using organizing, grassroots advocacy, and legal actions to build a food system that provides high-quality local food and good local jobs."

Groups like the Starbucks Workers Union and Brandworkers created momentum. In 2010, six years after baristas came together in Manhattan, a band of sandwich makers gathered 1,200 miles westward, in Minneapolis, Minnesota. Thus, the next wave of grassroots, low-wage labor activity - this time stemming from the fast-food industry and, more specifically, the corporate brand of Jimmy John's sandwiches - took hold. Sporting T-shirts that read, "Wages So Low You'll Freak" - a mockery of JJ's corporate slogan, "Subs So Fast You'll Freak" - JJ workers, also under the direction of the IWW, embarked on the first ever unionization drive for fast-food workers. Emily Przybylski, a bike delivery worker at the restaurant chain, captured the spirit of the moment. "A union in fast food is an idea whose time has come," she told reporters. "There are millions of workers in this industry living in poverty, with no consistent scheduling, no job security and no respect. It's time for change." As Labor Day 2010 approached, JJ workers at one Minneapolis store filed for a union election, and actions such as leafleting and picketing were coordinated at stores in 32 states, "from Clovis, California to Miami, Florida."

The embryo created by baristas in NYC, and nurtured over the better part of a decade by the likes of the Brandworkers and Jimmy John's workers in Minneapolis, came to a head in 2012. On Thursday, October 4th, 2012, the spread of low-wage discontent struck the epicenter of corporate exploitation, as "more than 70 Los Angeles Wal-Mart workers from nine stores walked off the job." These walkouts accompanied over "20 charges of unfair labor practices" filed with the National Labor Relation Board. A week later, Wal-Mart workers across 28 stores in 12 states, staged labor protests in the form of strikes and walk-outs. The first workers' strike in the company's 50-year history spread to stores in Los Angeles, San Francisco, Seattle, Chicago, Dallas, Miami, Washington, D.C., and Orlando. This movement, much like its predecessors, was largely formed out of grassroots organizing efforts that were over a year in the making. In June 2011, "OUR Walmart," a workers advocacy organization supported by and coordinated with store associates from across the country, dispatched "nearly 100 Associates representing thousands of OUR Walmart members from across the United States to the Walmart Home Office in Bentonville, Ark., and presented a Declaration of Respect to Walmart executive management." The Declaration included a list of requests: Listen to us, the Associates; Have respect for the individual; Recognize freedom of association and freedom of speech; Fix the Open Door policy; Pay a minimum of $13/hour and make full-time jobs available for Associates who want them; Create dependable, predictable work schedules; Provide affordable healthcare; Provide every Associate with a policy manual, ensure equal enforcement of policy and no discrimination, and give every Associate equal opportunity to succeed and advance in his or her career; and provide wages and benefits that ensure that no Associate has to rely on government assistance.

In November of 2012, merely weeks after Wal-Mart workers took a courageous stand, fast-food workers from McDonald's, Wendy's, Burger King, Taco Bell and KFC staged protests in various locations around New York City, "demanding $15 an hour in pay and the right to form a union." A few months later, in the spring of 2013, fast food strikes gained momentum with numerous walk-outs across the country. In April, NYC workers - backed by labor, community and religious groups - staged protests at more than five dozen restaurants. Over the course of the next month, similar actions were carried out in Pennsylvania and Chicago. In Chicago, the actions spread from the fast-food industry to retail, with low-wage workers from Macy's, Sears, and Victoria's Secret also participating. On Friday, May 10th, "400 workers at more than 60 fast-food restaurants in the Detroit metro area walked off the job" in what may have been "the largest fast food strike in American history." The Detroit event was significantly effective as it "shut down multiple restaurants entirely, including multiple McDonald's outlets, a Long John Silver's, a Burger King, two Popeye's restaurants, and a KFC." "One McDonald's worker, Jay Robinson, told reporters that when he started at McDonald's over two years ago, he was paid $7.40 an hour,"writes Aaron Petkov for Socialistworker.org. "Robinson has gotten raises since then - and now makes $7.48 an hour." In his efforts to care for himself and a 2-year-old daughter, "It's a day-to-day struggle," he told reporters. "And the owners make millions." At another McDonald's restaurant, "management attempted to avert a shutdown by bringing in replacement workers, but those replacement workers (in a moment of incredible solidarity) then promptly joined the strike." This wave of low-wage labor militancy continued through the summer. On Thursday, August 29th, workers at numerous fast-food chains participated in coordinated strikes in nearly 60 cities nationwide. Citing poverty wages and the need for more rights in the workplace, "a dozen workers didn't show up for their shift at a McDonald's on 8 Mile Road (in Detroit), forcing the closure of the dining room." In Raleigh, N.C., about 30 workers picketed outside a Little Caesars location. One employee, Julio Wilson, expressed the discontent of his peers, saying the $9-an-hour he was paid was not nearly enough to support himself and his 5-year-old daughter. "I know I'm risking my job, but it's my right to fight for what I deserve," Wilson said. "Nine dollars an hour is not enough to make ends meet nowadays." In Indianapolis, "several employees walked off the job from a McDonald's outlet at 16th and Meridian streets." "Most people here have a family to support, and most people here barely make enough to make ends meet,'" employee Dwight Murray said. "We're here today because we feel like McDonald's is a $6 billion entity and it's not unfeasible for them to pay $15 an hour.

Corporate Greed, Propaganda, and Union-Busting

Despite the obvious needs for livable wages, there is much opposition. Union-busting has become a staple of employee orientations throughout the corporate landscape, with retail giants like Target and Wal-Mart regularly unleashing "aggressive anti-union push (es), and distributing pamphlets and other propaganda to employees." Corporations like Target have become notorious for making employees watch dramatized "training videos" on the so-called "dangers" of unionization in an attempt to convince workers that higher wages, more benefits, and an overall sense of dignity at the workplace would somehow not be good for them. This concerted effort to maintain a grip on poverty wages has led to the formation of intricate networks of union-busting firms that employ corporate lawyers and "anti-union strategists" to offer "continuing education" for business owners and executives. "At these seminars," writes Kim Phillips-Fein, "lawyers and labor relations consultants from the nation's top union-busting law firms come to speak to rapt, intimate groups of executives, advising them on how to beat union election drives, do end runs around the National Labor Relations Board (NLRB), and decertify unions, all the while hawking their own firms' services." Of course, "union members are expressly banned." To complement this behind-the-scenes movement, corporate mouthpieces like Fox News have taken up the propaganda charge against unions by referring to them as "monopolies" that prevent non-union workers from securing jobs, coining terms like "union thugs" as a fear tactic, displaying video snippets of supposed "union violence," utilizing doublespeak like "right to work" to suggest that accepting low wages is somehow a right that should be fought for, and airing modern-day snake oil salesmen to convince its working class viewers that unions are given extra benefits at their expense. In addition to ideological propaganda, special interest groups, wealthy donors, and Super PACs fueled by the Supreme Court's infamous Citizens United decision - such as Koch Industries PAC - have placed virtual ATMs in Governor's mansions and Congressional offices to ensure political opposition to workers' needs while remaining corporate (and thus profit)-friendly.

Starbucks' corporate response to the organizing efforts made by those fateful NYC workers in 2004 was fierce. "Faced with the first serious effort in decades to unionize one of its stores, Starbucks launched what a former worker called 'a scorched-earth campaign' against pro-union employees," reported Josh Harkinson. "The union busting has just been absolutely relentless," says the worker, Daniel Gross, who was fired in 2006 due to his involvement in the initial organizing efforts at the Manhattan store where he worked. The Minneapolis Jimmy John's workers were met with similar tactics, which included bizarre personal attacks from store owners and management through social media. On March 22, 2011, after lobbying for sick days from the restaurant chain, six workers - all of whom were "key figures" in the union organizing efforts - were fired for "defaming the brand and disloyalty to the company." Shortly thereafter, another "pro-union" employee was berated and humiliated on social media by owners and managers, some of whom went as far as posting the employee's personal telephone number on a public Facebook page and asking people to text the employee to "let him know how they feel." An Assistant Manager then posted disparaging personal comments about the pro-union employee, making fun of his appearance and including a picture of the employee for all to see. In addition to these reactive measures deployed by some companies, corporate behemoths like Wal-Mart have relied on proactive union-busting programs for years. In 2007, Washington-based Human Rights Watch released an extensive report accusing the retail giant of "routinely flouting its workers' human rights through a sophisticated strategy of harassing union organizers, discriminating against long-term staff, and indoctrinating employees with misleading propaganda." The report includes examples of "workers forced into unpaid overtime and an alleged strategy of squeezing out long-serving staff who are more costly than low-wage, temporary, younger workers," highlights "elaborate tactics to stop staff from coming together to fight for better conditions," and even describes detailed measures such as "focusing security cameras on areas where staff congregate and shifting around loyal workers in 'unit packing' tactics to ensure votes for union recognition are defeated." The report also found that each store manager, as a part of their training, receives a "manager's toolbox" manual which instructs them on "how to remain free in the event union organizers choose your facility as their next target," and that managers are also given access to and instructed to call a 'union hotline' if they suspect staff are discussing unionization - an action that would deploy corporate specialists from the company's headquarters to "address the situation."

The reasons for such opposition are clear. Corporate profits remain at an all-time high because companies are able to pay poverty wages to their employees and rely on government welfare programs to cover the rest (ironically, while also enjoying historically low corporate tax rates ). Additionally, the economic storm that has lingered over the heads of the American working class for the past five years has equaled a virtual paradise for corporate America. Three simple facts highlight this current economic landscape:

• Corporate profit margins just hit another all-time high as companies are making more per dollar of sales than they ever have before.

• Wages as a percent of the economy just hit another all-time low as companies are paying employees less than they ever have as a share of GDP.

• Fewer Americans are working than at any time in the past three decades as companies don't employ as many workers as they used to. As a result, the employment-to-population ratio has collapsed.

Maintaining this environment has become a top priority for wealthy investors, the corporations themselves, and the politicians who are funded by both. By gutting the middle class through the destruction of unions (as of 2011, only 11.9% of the American workforce was unionized - a 70-year low) over the past three decades, corporations have enjoyed a relatively clear path towards establishing these beneficial conditions of today - where 20% of the population owns 89% of all "privately held wealth;" and where the top 1% of the population owns 42.1% of all "financial wealth (total net worth minus the value of one's home)." In addition to corporate-friendly policies that became commonplace starting with the Reagan years and continuing through both Bush', Clinton, and now Obama, the emergence of globalization has allowed for the replacement of American workers through the process of offshoring and the subsequent exploitation of extremely impoverished populations of workers abroad. Therefore, this latest surfacing of labor militancy from within the ranks of the domestic, low-wage, service-sector workforce represents the biggest threat - not only in its tangible fight for economic justice in the form of a livable wage, but also in its potentially revolutionary orientation which identifies with the modern working class and, most notably, the working poor - that corporate hegemony has faced within the geographic confines of the U.S. in decades. "If these guys are seen to succeed, it could really light a fire, because the dissatisfaction is unquestionable," labor historian Peter Rachleff explains. "The corporation knows that, and they have a lot of resources [and] plenty of lawyers" to combat these working class movements.

Workers' Victories and Building Momentum

Despite a well-funded and highly-coordinated opposition, there have been many victories and positive developments along the way. The mere emergence of a new labor resistance - let alone the fact that it has developed from within the low-wage service-sector and from one of the most disenfranchised demographics of the working class - is very encouraging. While some have questioned the roots of the movement and the extent of the involvement of more traditional, hierarchical unions like SEIU (Service Employees International), there is no denying the politicization and sense of empowerment that is being internalized by the involved workers themselves. Considering the near-death of working class consciousness in the U.S., this development simply cannot and should not be underestimated. The infusion of a direct-action model that insists on a worker-controlled approach to labor battles (i.e. the IWW) is certainly a leap forward. And this method has proven effective in more ways than one. On Tuesday, December 28, 2008, NYC Starbucks baristas were vindicated by National Labor Relations Board judge, Mindy E. Landow, when she ruled that Starbucks had "illegally fired three workers and otherwise violated federal labor laws in seeking to beat back unionization efforts at several of its Manhattan cafes" and ordered Starbucks "to pledge to end what she said was discriminatory treatment toward workers who supported the union at four of its Manhattan shops: 200 Madison Avenue at 36th Street, 145 Second Avenue at 9th Street, 15 Union Square East and 116 East 57th Street." Two years later, the IWW Starbucks Workers Union, following a "determined campaign of grassroots actions in Starbucks stores and communities all over the country," secured another victory when the company's corporate office gave in to demands for workers to receive time-and-one-half pay for working on Martin Luther King, Jr. Day. "We're deeply moved to have been able in our modest way to increase respect for Dr. King's legacy while ensuring that Starbucks employees who work on his holiday are fairly compensated," said Anja Witek, a Starbucks barista and SWU member in Minnesota. "This is a great example of what baristas and all low-wage workers can achieve by getting organized and taking direct action in support of workplace justice issues." In February of 2012, after a long and drawn-out battle with Jimmy John's, a federal judge ruled the company illegally fired the six employees who had campaigned for sick time, and ordered the company to "reinstate the workers with back pay within 14 days." In a spirited testimony, Erik Forman, one of the fired employees, remarked:

"It has already been over a year since we were illegally fired for telling the truth. For all the hard work and dedication of the NLRB's civil servants, employers like Jimmy John's prefer to break the law and drag cases through the courts for years rather than let workers exercise their right to win fair pay, sick days, and respect through union organization. The dysfunctional U.S. labor law system gives Mike and Rob Mulligan (JJ franchise owners) and their cronies in the 1% carte blanche to trample on workers' rights. Jimmy John's workers, and the rest of the 99%, will only be able to win a better life by taking our fight from the courtroom back to the shop floors and the streets."

The latest low-wage workers strike, which took place on December 5th across "100 cities through the day," signified, according to the Guardian's U.S. affiliate, "a growing clamour for more action on income inequality." In front of a Walgreen's in downtown Chicago, nearly 200 protestors chanted, "We can't survive on eight-twenty-five…Walgreen's, Walgreen's, you can't hide. We can see your greedy side!" In Washington, D.C., dozens of workers carrying signs singing loudly, "Jingle bells, jingle bells, jingle all the way, it's no fun, to survive, on low low low low pay." "In New York City, about 100 protesters blew whistles and beat drums as they marched into a McDonald's chanting "We can't survive on $7.25." This collective outrage has empowered workers while also placing the problem of income inequality back on the public agenda. Major media sources that had barely uttered a word about such inequality in recent decades have now begun to showcase it. The Catholic Church's latest Pope, Francis, has made waves during a near-month-long tirade exposing the flaws of capitalism, recently asking, "How can it be that it is not a news item when an elderly homeless person dies of exposure, but it is news when the stock market drops 2 points?" and referring to the "widening gap between those who have more and those who must be content with the crumbs." And calls for a federal minimum wage increase have gained steam with U.S. Labor Secretary, Thomas Perez, writing on his blog, "To reward work, to grow the middle class and strengthen the economy, to give millions of Americans the respect they deserve - it's time to raise the minimum wage." Though, of course, the Democratic Party's proposal to raise the current rate from $7.25 to $9.00, or even $10.10 in other proposed legislation, would hardly equal a significant change for tens of millions of working poor. Still, despite reformist-based rhetoric from politicians, the agenda is being shaped by the brave workers who have risked all to take a stand.

The battle cry "Fight for $15" has stuck. Numerous small and localized labor organization like Detroit 15 - a group of fast-food and retail workers from the Detroit area fighting "for fair wages and the right to form a union without interference" - and Fast Food Forward - a movement of NYC fast-food workers coming together to "build community engagement, hold corporations and their CEOs accountable, and to raise wages so that all Americans can prosper" - have sprung up amidst the movement-at-large, helping to form collaborative efforts with community and religious organizations which possess built-up social capital to be used, and to make the collective decision-making process more accessible to the workers themselves. Socialist candidate, Kshama Sawant, who made the "Fight for $15" cause a key part of her election campaign, made history by winning a seat on the Seattle City Council in November. Sawant's victory was significant not only for working class interests that have been in dire need of a true "left wing" for decades, but also for the fact that her platform was able to pull local Democrats toward a more authentic (though still reformist), left-wing, working-class agenda. As Seattle Times columnist, Danny Westneat, reported:

"You can't look at the stagnant pay, declining benefits and third-world levels of income disparity in recent years and conclude this system is working. For Millennials as a group, it has been a disaster. Out of the wreckage, left-wing or socialist economic ideas, such as the 'livable wage' movement in which government would seek to mandate a form of economic security, are flowering."

The Future of the American Working Class

If you're reading this article, chances are you are a member of the working class - not because the article specifically pertains to your interests but because, by definition, a large majority of us are compelled to work for a wage or salary to survive. The Occupy slogan which may seem a bit hyperbolic on the surface - breaking society into two camps: the 99% and the 1% - is actually not far off. The 99% essentially refers to the working class - those of us who are underemployed, unemployed, making minimum wage, making an hourly wage, working multiple jobs, earning a salary, working as "salaried professionals," working "under-the-table," etc.. In other words, if you weren't born with enough privilege and generational wealth to carry you through life, you are likely working for a wage in some form or another, or would be compelled to do so if left to your own means.

Jay Robinson, Julio Wilson, Dwight Murray, and their fellow employees are correct in their estimation: Multi-billion dollar corporations can and should pay their workers a livable wage. Considering how far removed we are from the age-old concept of workers "enjoying the fruits of their labor," a seemingly minimal expectation of earning a livable wage for fulltime work has become a revolutionary notion. But it shouldn't be. This issue is not just a low-wage problem - it's a working class problem. It's a middle class problem. It's a societal problem that destroys living standards for everyone outside of elite circles. And, while it is nowhere near the end-all, be-all of solutions to a toxic system, the premise of "a chain being only as strong as its weakest link" is certainly an improvement over the neoliberal, "greed is good" mantra which has dominated monetary and governmental policy over the past thirty years. For low-wage workers themselves, besides allowing the dignity of "earning a living," a livable wage infuses more expendable income into the economy while allowing for the opportunity to live without a chronic reliance on public assistance. "If you earn your money through wages (unlike many of the 1 percent, who earn through things like investments and a tax system biased in favor of capital gains over income) then a higher wage, minimum or otherwise, would mean that you'd spend the additional dollars, creating jobs for other workers," explains market analyst Marshall Auerback. "You'd pay down your mortgages and car loans, getting yourself out of debt. You'd pay more taxes - on sales and property, mostly - thereby relieving the fiscal crises of states and localities. More teachers, police and firefighters would keep their jobs. America would get a virtuous cycle toward higher employment and, more importantly, the cycle would be based on a policy which creates higher incomes, not higher debt via credit expansion." Furthermore, the establishment of livable wages eases the burden placed on the rest of the working class, which has contributed approximately $7 billion per year to fund public assistance programs that serve as a form of subsidization for Fortune 500s. That figure, from an October 2013 report by UC Berkeley's Labor Center, includes four major social benefits programs that low-wage workers are forced to use in order to provide basic necessities for themselves and their families. Specifically, the amount is broken down to Medicaid and the Children's Health Insurance Program ($3.9 billion), the Earned Income Tax Credit ($1.9 billion), food stamps ($1 billion), and Temporary Aid for Needy Families ($200,000), and doesn't include other publicly funded programs like child care assistance, WIC, or section 8 housing, among others.

For those who see low-wage workers protesting for higher pay and think, "why don't they just get a better job" or "why don't they go to college, like I did, and earn a degree?" - think again. In 2012, nearly 300,000 Americans with college degrees were working minimum wage jobs. Furthermore, nearly one-half of all recent college graduates with jobs are underemployed. "Of 41.7 million working college graduates in 2010, about 48 percent of the class of 2010 work jobs that require less than a bachelor's degree, and 38 percent of those polled didn't even need high school diplomas." Even worse yet, 40% of recent college graduates are unemployed. In other words, the idea that earning a degree guarantees a livable wage is exactly that - an idea, no longer based in reality. For those who see low-wage workers striking for a livable wage and think, "what do they expect, they're working at McDonald's" or "these aren't careers we're talking about" - think again. Fact is, since the arrival of globalization, American manufacturing companies - the traditional suppliers of a livable wage - have jumped ship, moving their operations overseas to exploit impoverished workforces that are compelled to labor for next-to-nothing. Since this shift, America's working class has become largely reliant on the service industry. In other words, low-wage, service sector jobs are now careers - not by choice, but by necessity. The 2008 economic crisis and subsequent "recovery" only intensified this shift as "mid-wage occupations ($13.84 to $21.13 per hour) constituted 60 percent" of job losses during the 2008 recession, but only 22 percent of the job gains during the recovery. In contrast, "low-wage occupations ($7.69 to $13.83 per hour) constituted 21 percent" of job losses during the recession, while representing 58 percent of new jobs created during the aftermath. This is a staggering displacement that has seen once-livable employment virtually replaced by now-unlivable wages. As a result, the "characteristics of minimum wage workers" are changing, as 75 percent of them are now adults, many of whom have dependents to care for, and 70 percent of who have at least a high school degree.

The American working class has found itself in a breakneck "race to the bottom" during the corporatist era. However, recent developments stemming from "solidarity unionism," low-wage worker revolts, and a backlash against neoliberal policies and the extreme income inequality which they have bred have shown that American workers are, in fact, beginning to "rise like lions after slumber." If the thundering wave of low-wage labor militancy that has swept the country is any indication, the slumber is officially over. And if the "dramatic actions by and on behalf of workers" in places likes Seattle the past few months - including a "defeat of concessions at major grocery chains, Boeing workers' big 'no' vote on concessions, a $15 minimum wage voted in for airport workers, and election of a socialist (a candidate who made a city-wide $15 minimum wage the centerpiece of her campaign) to city council" -represent a microcosm of things to come, the proverbial race to the bottom - whether it has struck bedrock or not - is over. Because of their emergence as a viable sector of embedded labor, courageous, low-wage workers in the service industry now represent the front lines of an ongoing class war. They represent, as Dave Frieboth notes, "a general uprising of young, displaced workers trapped in low-wage jobs;" people who "looked at the wage disparities and saw that, as a simple matter of fact, the system isn't working." The further they can be kept down in terms of wages, benefits, and overall standards of living, the more effectively their lowly presence may be used as leverage to drive all working Americans' standards down. Thus, their status affects the status of the working class as a whole. They are not only fighting for themselves - they are fighting for all of us. In this sense, "an injury to one" truly is "an injury to all." Their fight is everyone's fight.

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Supremacy: A Social Order of Division, Control, and Enslavement

By Kali Ma

"It seemed like Mrs. Elliott was taking our best friends away from us."

These are the words of a third-grader from Riceville, Iowa. Her schoolteacher, Jane Elliott, had just put her class through an exercise that showcased the viciousness and injustice of white supremacy in the late 1960s. Jane Elliott has since replicated this exercise countless times, but her original lesson remains a groundbreaking insight into the mechanisms of supremacy as depicted in the documentary A Class Divided. By labeling the blue-eyed students in her class smarter and better, and giving them more privileges than the brown-eyed students, Jane Elliott instantly creates division and hostility between the two groups. She constantly reinforces the superiority of her blue-eyed students who suddenly feel more confident and perform better at tasks than their now demoralized and dejected brown-eyed classmates. This division creates conflict between the students, which greatly upsets them and even leads to physical fights. Jane Elliott is stunned by the results of her exercise, saying: "I watched what had been marvelous, cooperative, wonderful, thoughtful children turn into nasty, vicious, discriminating little third-graders in a space of fifteen minutes."

Jane Elliott's exercise clearly illustrates how simple it is to ignite conflict between people once a group of individuals is elevated above another. It also demonstrates how supremacy creates powerlessness in the "inferior" group and that the loss of personal power eventually leads to hostility and violence. This is the system we live under today - a hierarchy that ranks people based on their "worth" and socio-economic status.

Hierarchy - A Tool of Supremacy

To varying degrees, most socio-economic systems in the world today are hierarchical.[1] In a system of hierarchy, individuals occupy social ranks based on their levels of income and wealth, which significantly affect their access to vital resources such as food, shelter, healthcare, and education. In all hierarchies there is a ruling class on top that holds significant social, political, and economic power and whose interests are in direct opposition to those of the masses. A hierarchical structure is, in essence, about power - the ability to control and shape outcomes that further the interests of the ruling class. Since money is the way to greater freedom, most people intend to move up the hierarchy and buy their way into a new reality. After all, those at the top have the freedom to act in ways most people cannot: they make the rules and break them with impunity; they have access to resources, people and capital that allows them to easily perpetuate their wealth; and their occupations often include those of "socialite," "philanthropist," and some even get paid to party.

As an economic system, a hierarchical structure is inefficient and creates unnecessary scarcity because it allows the ruling class to hoard wealth and resources while the majority fights it out over "leftovers." Additionally, because its structure grants disproportionate power and privilege to those on top, it creates a system that is only beneficial to a wealthy minority. Economic inequality is particularly insidious in a hierarchical social order in which wealth determines social status. Such systems create extreme inequality where the gap between the rich and poor is great and social mobility is particularly difficult.

Supremacy is the hallmark of hierarchy where being a "winner" depends on someone else being a "loser" and where wealth is created at the expense of other people and the environment without concern for the collective good. Hierarchies are inherently coercive because they grant dominant groups the authority to impose their rules and ideology on those below them. It is thus a system of dominance, commanding its full power, authority and coercive nature against "weaker" subjects (i.e. the "have-nots" or "inferiors"). However, it is by no means a "natural" arrangement or, as many would say, "just the way things are." A hierarchical social system is closely linked to the systemic subjugation of women under patriarchy, which emerged as a dominant structure in the last 5,000 years of modern human history and helped spur on the agricultural revolution. [2] In effect, humans have lived in hierarchical systems for a fraction of our existence; yet during this new time period we have exhausted much of the world's resources and are quickly heading for a collision course with nature itself.

The purpose of hierarchy in a socio-economic system is not to create opportunities but to protect the supremacy of the ruling elite by controlling people's autonomy and dividing the working class amongst one another through social and economic stratification.

'Divide and Conquer'

While a hierarchical structure places the ruling class on top, it also divides the working people into various "levels" of socio-economic status, with money determining the place in the pecking order. Because there are various "levels" of social status with millions of people competing for the few spots on top, solidarity and cooperation between the people becomes virtually impossible. As a result of this stratification, the lower classes compete against each other and become divided along social, political, and economic lines. In other words, a hierarchical structure breeds competition, division, and outright hostility amongst the various members in society.

Social Conflict within the Working Class

In addition to fostering general class conflict and powerlessness in "inferior" groups, supremacy also creates a hierarchy of worthiness that is directly linked to how closely each of us resembles the '"supreme" image. This "supreme" ideal has traditionally been white, wealthy and male. If we do not meet that profile, then we can at least strive to behave and speak like them, think and believe as they do, or shape our personas in countless ways to appear acceptable to them or as close to the "supreme" image as possible. Economic worth and, in turn our ranking in the hierarchy, are directly linked to how closely we resemble the "supreme" image of white, male privilege. Those who least reflect this "supreme" ideal are deemed "inferior" and labeled as the "other." Because we internalize the "supreme" image early on in our lives, we grow up judging ourselves and others based on that standard. We are effectively pit against one another and through our judgments dehumanize, disrespect, marginalize, and deem unworthy individuals who do not meet the "supreme" standard and who occupy a lower rung on the hierarchy. This dehumanization and "otherness" of individuals who are different from the "supreme" standard is inherent in a hierarchical structure and is at the root of sexism (male supremacy), racism (white supremacy), classism (class supremacy), homophobia (heterosexual supremacy), ethnocentrism (cultural supremacy) and all other social and political divisions under the sun. Victim-blaming and general hostility towards those who are "different" or "inferior" becomes a staple of hierarchical society.

Of course there are exceptions and a privileged upbringing can cancel out many "inferior" traits. However, exceptions are just that: rare occurrences that do not reflect the rule and the reality that happens every day, all day, everywhere. In fact, exceptions are often used to distract us and falsely convince us that society has overcome classism, racism, sexism, or homophobia. In reality, society has gotten much better at hiding its inequities by commercializing, fetishizing, and pop- culturulizing the lives of individuals who are subject to real, everyday discrimination. It is privilege and supremacy we must challenge in all their forms, which are still deeply rooted in white, male, privilege and power.

Economic Conflict within the Working Class

The hierarchy of worthiness also plays out in our economic system. In a hierarchical economic structure, the lower classes are the foundation upon which the successes of others are built. For instance, professionals such as doctors and engineers occupy higher socio-economic standings than Wal-Mart cashiers who ring up their groceries or janitors who clean and maintain their offices. Of course, not everyone possesses the skills and talents to be a doctor or engineer, or for that matter, a cashier or janitor. But when more privileged individuals blame others for being poor, "unaccomplished," "unsuccessful," or unemployed, they do not take into account that the reason they are in a superior position is because someone else is in an inferior, lower position. This is how hierarchy works - someone has to rank at the bottom in order for those on top to be recognized as the "winners." Without such ranking, everyone would be equal. Moreover, society absolutely depends on workers to clean, maintain, repair and service various sectors of society, including private property and public commons. These individuals provide an extremely valuable service that allows society to function yet the system gives them no credit and, in fact, looks down on them and blames them for being in that position. Just imagine a society without sanitation workers to haul off your waste and keep the streets clean, or maintenance workers to keep your buildings running and the AC flowing when it's 100 degrees outside, or grocery clerks who stock your food and water so you can conveniently pick it up and feed your family. Without them, doctors, lawyers, engineers and other members of the professional class could not go about their business. But society has little respect for these individuals who are often paid minimum wage with no benefits; yet they are the very people who make society function.

The "winner" in this unequal arrangement is always the wealthy ruling class who owns the factories, corporations, businesses, and most other institutions and profits from the labor of the working class. The "owners" of society, essentially, sit back and watch their profits soar while the working class slaves over increasingly lower wages and deteriorating working conditions imposed on them by the same people their labor enriches. Individuals of privilege occupy "leadership" positions in all areas of society, from corporations, government and non-profit organizations to the medical, legal, and academic fields. The privileged play both villain and superhero, terrorizing and rescuing the lower classes who are simply pawns in the ruling elite's game of interest and intrigue. The supremacy of the ruling class is legitimized by the meritocracy myth that the most intelligent individuals in society naturally succeeded. The truth, however, is that the wealthy and privileged always end up on top in a system that is created by them to protect their own interests and power.

The meritocratic rationalization for why the wealthy have so much wealth - namely that they are smart and worked hard - is simply ridiculous. Janitors, secretaries, sanitation workers, and plenty of other people are smart and work hard - sometimes at 2 or 3 different jobs - yet their incomes can be as much as 1,795 times lower than that of the "owners." The excuse that elites are smarter is equally absurd seen as how the education system is set up to favor individuals of privilege and serves to protect the power of the ruling class. But for the sake of argument, if indeed they are rewarded by wealth because of their hard work and intelligence, when does the time of rewards come to hard-working lower class people? Shouldn't they be rewarded for their invaluable work that keeps society and the world functioning? And what about the fact that the "superior" ruling elite has completely failed at leading society on all levels, pretty much driving us off the cliff into global suicide? The truth, of course, is that in a system based on domination, the few on top who make the rules can do no wrong regardless of their incompetence. All that matters is the supremacy of their position, which is attained through wealth that has, for the most part, been passed down through generations.

Controlling our Bodies

Slavery is the ultimate control of people's bodies for economic exploitation. A slave has no autonomy, because his actions depend on the permission of another who "owns" him. Within our society today, slavery is not as obvious as it used to be when blacks were "owned" by white slave masters. Today, the control of our bodies takes on many different forms: the use of our bodies and labor as economic goods to be traded on the market in exchange for security in the form of monetary compensation; the steady supply of mostly poor minorities into the private prison system whose bodies are used as slave labor for the benefit of corporations; the control of women's bodies through legislation under the guise of "protecting" the woman and the "unborn" which deprives women of their fundamental choice to make decisions about their bodies; regulation of homosexual conduct and relationships which deprives consenting adults of making decisions about how to use their bodies in a sexual way; the vindication of the George Zimmermans of the world who - with the full backing of a systemic and cultural ideology of white supremacy that views black bodies as worth less - internalize these poisonous values and believe in their inherent right to decide the fates of innocent black people and deprive them of their right to exist as dignified human beings without being stalked, marked, harassed, and murdered with impunity. And even those of us who are victims of oppression in some other way, nonetheless, often become agents of the system, internalizing its values and beliefs and turning on those below us in the hierarchy who are deemed "inferior" or "less than." In this way, hierarchy not only controls our bodies, but also our minds.

Working Toward a New Paradigm

A hierarchical system that facilitates social and economic relationships is extremely harmful because it creates relationships of power that are based on coercion in which freedom cannot exist. Power and freedom are essentially opposites: power seeks to control and dominate while freedom is about autonomy and self-determination that yearns to determine its own path of expression. While there are varying degrees of freedom that can be bought by moving up the system of hierarchy, no one is truly free - not even the ruling class because its supremacy solely depends on the subjugation of the masses.

Our goal then is not to move up the hierarchy because this only legitimizes and perpetuates a dysfunctional system of inequality and oppression; the goal is to completely abolish hierarchy, which only the people can do. We cannot look to those in power who depend on the system for their privilege to make things better for the majority of people. Logically, the ruling class will not threaten its own interests and power. Our immediate short-term goal must be to stop further inequality by building mass movements of solidarity with one another. It is important to note, however, that not every person must get out into the streets to protest; rather, each person can contribute to this movement in different ways, even if it means just standing up for truth instead of "going along to get along." Awareness is key, but we also need to take action. What that action is, each person must determine for themselves.

A violent uprising against the most technologically sophisticated military in history is certain to fail and will do little to improve relations between various social groups. Because the system of supremacy has - through its divisive nature - literally "taken our best friends away from us" and discriminated against many of them, we must confront our own shadows and acknowledge all the ways we personally perpetuate the system's ideology and judge ourselves and others based on its oppressive values. As a result of the division, there is much distrust between various social groups and if we wish to move forward in solidarity, we must work to repair those social bonds. Likewise, we must also confront the internalized fear and desire for acceptance that pushes us to sacrifice truth in favor of comfort and privilege. In other words, we have to reach into the depths of our souls and take our individual power back. A power that is not dependent on the approval of the system, but rooted in self-acceptance and self-awareness. It is truly a radical process that seeks to transform human consciousness by bringing about a revolution from the inside out. We certainly have our work cut out for us; but, at this point, evolving into a new consciousness is our only hope.

Notes

[1] The system we live under is often described as capitalism, oligarchy, corporatocracy, or plutocracy. Regardless of the label, all of these structures are extremely hierarchical where most benefits flow to the ruling class at the top at the expense of the majority of people. While hierarchies occur in all systems - even socialism and communism - in those structures inequality between the different classes is much less pronounced and resources are much more evenly distributed.

[2] Gerda Lerner, The Creation of Patriarchy, (Oxford University Press: 1987)

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.