Showing posts with label wealthy. Show all posts
Showing posts with label wealthy. Show all posts

Thursday, April 18, 2013

Wealthiest Americans have established a propaganda tool to subvert democracy

The Propaganda System That Has Helped Create a Permanent Overclass Is Over a Century in the Making

Where there is the possibility of democracy, there is the inevitability of elite insecurity. All through its history, democracy has been under a sustained attack by elite interests, political, economic, and cultural. There is a simple reason for this: democracy – as in true democracy – places power with people. In such circumstances, the few who hold power become threatened. With technological changes in modern history, with literacy and education, mass communication, organization and activism, elites have had to react to the changing nature of society – locally and globally.

From the late 19th century on, the “threats” to elite interests from the possibility of true democracy mobilized institutions, ideologies, and individuals in support of power. What began was a massive social engineering project with one objective: control. Through educational institutions, the social sciences, philanthropic foundations, public relations and advertising agencies, corporations, banks, and states, powerful interests sought to reform and protect their power from the potential of popular democracy.

Yet for all the efforts, organization, indoctrination and reformation of power interests, the threat of democracy has remained a constant, seemingly embedded in the human consciousness, persistent and pervasive.

In his highly influential work, The Crowd: A Study of the Popular Mind, French social psychologist Gustav Le Bon suggested that middle class politics were transforming into popular democracy, where “the opinion of the masses” was the most important opinion in society. He wrote: “The destinies of nations are elaborated at present in the heart of the masses, and no longer in the councils of princes.” This was, of course, a deplorable change for elites, suggesting that, “[t]he divine right of the masses is about to replace the divine right of kings.” Le Bon suggested, however, that the “crowd” was not rational, but rather was driven by emotion and passion.

An associate and friend of Le Bon’s, Gabriel Tarde, expanded upon this concept, and articulated the idea that “the crowd” was a social group of the past, and that “the public” was “the social group of the future.” The public, argued Tarde, was a “spiritual collectivity, a dispersion of individuals who are physically separated and whose cohesion is entirely mental.” Thus, Tarde identified in the growth of the printing press and mass communications a powerful medium through which “the public” was shaped, and that, if managed appropriately, could bring a sense of order to a situation increasingly chaotic. The newspaper, Tarde explained, facilitated “the fusion of personal opinions into local opinions, and this into national and world opinion, the grandiose unification of the public mind.”

The development of psychology, psychoanalysis, and other disciplines increasingly portrayed the “public” and the population as irrational beings incapable of making their own decisions. The premise was simple: if the population was driven by dangerous, irrational emotions, they needed to be kept out of power and ruled over by those who were driven by reason and rationality, naturally, those who were already in power.

The Princeton Radio Project, which began in the 1930s with Rockefeller Foundation funding, brought together many psychologists, social scientists, and “experts” armed with an interest in social control, mass communication, and propaganda. The Princeton Radio Project had a profound influence upon the development of a modern "democratic propaganda" in the United States and elsewhere in the industrialized world. It helped in establishing and nurturing the ideas, institutions, and individuals who would come to shape America’s “democratic propaganda” throughout the Cold War, a program fostered between the private corporations which own the media, advertising, marketing, and public relations industries, and the state itself.

'A Genuinely Democratic Propaganda'

World War I popularized the term “propaganda” and gave it negative connotations, as all major nations involved in the war effort employed new techniques of modern propaganda to mobilize their populations for war. In the United States, the effort was led by President Woodrow Wilson in the establishment of the Committee on Public Information (CPI) as a “vast propaganda ministry.” The central theme of the CPI was to promote U.S. entry into the war on the basis of seeking “to make a world that is safe for democracy.” This point was specifically developed by the leading intellectual of the era, Walter Lippmann, who by the age of 25 was referred to by President Theodore Roosevelt as “the most brilliant man of his age.” Lippmann was concerned primarily with the maintenance of the state-capitalist system in the face of increased unrest, resistance, and ideological opposition, feeling that the “discipline of science” would need to be applied to democracy, where social engineers and social scientists “would provide the modern state with a foundation upon which a new stability might be realized.” For this, Lippmann suggested the necessity of “intelligence and information control” in what he termed the “manufacture of consent.”

Important intellectuals of the era then became principally concerned with the issue of propaganda during peacetime, having witnessed its success in times of war. Propaganda, wrote Lippmann, “has a legitimate and desirable part to play in our democratic system.” A leading political scientist of the era, Harold Lasswell, noted: “Propaganda is surely here to stay.” In his 1925 book, The Phantom Public, Lippmann wrote that the public was a “bewildered herd” of “ignorant and meddlesome outsiders” who should be maintained as “interested spectators of action,” and distinct from the actors themselves, the powerful. Edward Bernays, the ‘father of public relations’ and nephew of Sigmund Freud got his start with Wilson’s CPI during World War I, and had since become a leading voice in the fields of propaganda and public relations. In his 1928 book, Propaganda, Bernays wrote: “The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country.” Modern society was dominated by a “relatively small number of persons... who understand the mental processes and social patterns of the masses,” and this was, in Bernays’ thinking, “a logical result of the way in which our democratic society is organized.” Bernays referred to this – “borrowing” from Walter Lippmann – as the “engineering of consent.”

For the leading intellectuals and social engineers of the era, “propaganda” was presented as distinctly “democratic” and as a necessity to the proper functioning of society. John Marshall of the Rockefeller Foundation focused on what he called the “problem of propaganda” and sought to create, as he wrote in 1938, a “genuinely democratic propaganda.” Marshall pursued this objective through the Rockefeller Foundation, and specifically with the Princeton Radio Project in the late 1930s under the direction of Hadley Cantril and Frank Stanton, though including other intellectuals such as Paul Lazarsfeld and Harold Lasswell.

In 1936, Marshall wrote that the best way to expand the use of radio and film was for the Rockefeller Foundation to give “a few younger men with talent for these mediums an opportunity for relatively free experimentation... men interested primarily in education, literature, criticism, or in disseminating the findings of the social or natural sciences.”

In 1939, with the war in Europe under way, the Rockefeller Foundation had organized several conferences and published several papers on the issue of mass communication, directed by what was called the Communications Group, headed by Marshall and other Foundation officials, and with the participation of Lasswell, Lazarzfeld, Cantril, and several others. Early on, the Communications Group noted that with “an increasing degree of [government] control... in regard to all phases of communication, such as in the schools, the radio, the films, the press, and even eventually in all public discussion,” it was necessary to arrive at a consensus – among the “experts” – as to what role they should play as the state expands its authority over communication. Sociologist Robert Lynd took a page from Lippmann and wrote that a “goal” of experts in communication should “be that of persuading the people that there are many issues too complicated for them to decide, which should be left to experts.” One other participant commented on Lynd’s suggestion: “Mr. Lynd feels we need a restructuring of democratic action in terms of the capacity of different groups of the population and an abandonment of the American idea of the responsibility and capacity of the man on the street.” In 1940, John Marshall wrote:
In a period of emergency such as I believe we now face, the manipulation of public opinion to meet emergency needs has to be taken for granted. In such a period, those in control must shape public opinion to support courses of action which the emergency necessitates... No one, I think, can blame them for that impulse.

In a 1940 memo for the Communications Group, Marshall wrote that, “We believe... that for leadership to secure that consent will require unprecedented knowledge of the public mind and of the means by which leadership can secure consent... We believe... that we gave available today methods of research which can reliably inform us about the public mind and how it is being, or can be, influenced in relation to public affairs.” The memo concerned some officials at the Rockefeller Foundation, noting that it could be misinterpreted and that such research should be careful about becoming a mere tool of the state, with one official noting: “Public opinion and vested interests are... violently opposed to such a development which would be labeled as fascist or authoritarian.” Another official suggested that the memo “looks to me like something that [Nazi propaganda chief] Herr Goebbels could put out with complete sincerity.” While one Foundation official referred to the memo as resembling “the methods by which democracy has been destroyed,” he added that, “finding out regularly and completely what the mass of the people feel and believe and think about things and policies is a necessary part of the modern democratic process.” Marshall and the Communications Group refined their approach from a more overt authoritarianism of “one-way” communication between the state and the population, to a more Lippmann-centered concept of “manufacturing consent” and what has been referred to as “democratic elitism.” In the final report of the Communications Group in 1940, it was noted that two-way communication between the government and population was essential, as without it, “democracy is endangered,” and that it was required for the population to give “consent.”

Frank Stanton, along with Hadley Cantril, was one of the co-directors of the Princeton Project since its inception. As Michael J. Socolow wrote in the Journal of Broadcasting & Electronic Media, Frank Stanton had “devoted much of his life to understanding the cultural, social, and psychological effects of the mass media.” Stanton was the president of CBS from 1946 until 1973, during which he “proved to be an effective corporate strategist” and “a skillful political operator,” not least of all because he “collaborated closely with the U.S. government, performing propaganda tasks during the Second World War and the ensuing Cold War.”

Stanton’s first job was in the advertising industry, beginning in 1929 and cut short by the market crash, though Stanton maintained that advertising “was the greatest thing since sliced bread.” In school, Stanton studied business administration and psychology, being particularly influenced by John B. Watson, the developer of behaviorism, who himself went to go work for an advertising agency. Throughout his own life and career, Stanton viewed himself as “a behaviorist, a social scientist valuing the application of psychological technique across a variety of human endeavors.”

Behaviorism was a brand of psychology which emerged in response to the development of the field by social scientists seeking to make "scientific" what was previously the realm of philosophy and spirituality, drawing in political scientists, economists, sociologists, and others. The field of psychology had become more prominent following World War I, after having proved its worth to power interests in mobilizing, manipulating, and studying populations and their perceptions. In 1929, the president of Yale, James Agnell, announced the creation of the Yale Institute of Human Relations (IHR), with a generous grant from the Rockefeller Foundation. Agnell explained that the IHR was “directly concerned with the problems of man’s individual and group conduct,” out of which the purpose was “to correlate knowledge and coordinate technique in related fields that greater progress may be made in the understanding of human life.”

The IHR helped facilitate the rise of behaviorism in psychology, as in the 1920s and 30s, social unrest was a growing problem, and so psychologists attempted to promote themselves and their field as a possible solution to these problems, as a “scientific psychology” – or “social psychology” – could “be instrumental for attaining democratic social order and control.” Such a theory was based upon the view that the individual was not well “adjusted” to a rapidly changing environment, and therefore, with the help of psychology, the individual could be “adjusted” successfully. Of course, the notion that there is something inherently problematic with society and the social order (and the hierarchy upon which it was built) went unquestioned. In other words, it was not society which needed to "adjust" to individuals and the population, but rather the opposite. Psychologists and Yale’s Institute of Human Relations would promote themselves as the solution to this complex problem. Behaviorism was thus concerned with environmental and behavior control in human relations. This influenced not only Frank Stanton, but other key officials who were involved in the Princeton Radio Project, including Paul Lazarsfeld.

Frank Stanton eventually got a job at CBS following some research he had done on radio audiences and had sent to CBS headquarters. In 1935, Stanton was the third employee hired by CBS for the research division, concerned largely with the ability of advertisers to sell to radio listeners. As Stanton explained in 1936, the contribution of psychology to radio research “should be largely one of technique,” adding: “It isn’t enough to know what programs are heard and preferred. We want to know why they are listened to and liked, and furthermore, we want to quantify influence.” Weeks later, Stanton – with the suggestion of Hadley Cantril – wrote a draft memo of a research proposal for the Rockefeller Foundation, out of which would come to Office of Radio Research at Princeton.

The Princeton Radio Project, established with Rockefeller funding and directed by Paul Lazarsfeld, Cantril, and Stanton, focused on studying the uses and effects of radio communications upon the population, and almost exclusively led to the field of mass communications research. Theodor Adorno, a critical theorist whom Lazarsfeld invited to join the Princeton Radio Project ran into several problems during his research with his associates. Lazarsfeld brought Adorno into the project hoping that he could bridge the gap between American and European approaches to research. Adorno, however, sought to understand not simply the effects of radio in mass communications, but the role played by the "researcher" – or “expert” – in the social order itself. This put him in direct conflict with the project and its philosophy. For Adorno, wrote Slack and Allor, “not only the processes of communication but the practice of communication research itself had to be viewed critically.” Reflecting upon his experience some decades later, Adorno wrote that, “there appeared to be little room for such social research in the framework of the Princeton Project.” He noted: “Its charter, which came from the Rockefeller Foundation, expressly stipulated that the investigations must be performed within the limits of the commercial radio system prevailing in the United States.” Thus, “the system itself, its cultural and sociological consequences and its social and economic presuppositions were not to be analyzed... I was disturbed.”

Shortly after World War II and into the 1950s, the U.S. State Department became increasingly interested in the subject of propaganda, or what was termed “information management” and “public diplomacy.” Television was of particular interest in promoting American state interests, specifically those defined by the Cold War. Francis Russell, the director of the State Department’s Public Affairs (PA) division from 1945 to 1953, noted that “propaganda abroad is indispensable” in the Cold War, but that the State Department had “diligently cultivated the concept of PA as a service to the American people, a place where the public can come to obtain information.” He explained his worry that, “if the American people ever get the idea that the same high-powered propaganda machine” used abroad was “also at work on them, the result will be disaster fir both the domestic and overseas programs.” The role of the PA was not in a censorship bureau, but as a dispenser of "information," to which the media – largely privately owned – would use as a consistent source for reporting, re-printing press releases, and seeking official sources for comment. Edward Barrett, another top official in the PA division, later noted: “We really tried to stick to the truth and tell nothing but the truth, but we didn’t always tell the whole truth.”

Nancy Bernhard, writing in the journal Diplomatic History, explained this contradiction aptly: “While Americans defended commercial broadcasting because it was free from Communistic government control, commercial broadcasters voluntarily collaborated with the government information services in the name of anticommunism. "Free" broadcasters volunteered as a virtually official information agency.” It was no surprise, then, that government “information programs” used the specific talents of corporate tycoons in the media world, bringing in talent from networks, advertising agencies, public relations agencies, and marketing bureaus. The State Department established a number of “advisory boards” to monitor its “public affairs” operations, largely made up of industry and corporate officials. Among the influential board members was Frank Stanton.

When Eisenhower came to power, a new agency was created to handle information and cultural programs previously undertaken by the State Department, the US Information Agency (USIA), established in 1953. In attempting to create a terminology to describe the activities of the USIA and its relationship to foreign policy goals – without using the obvious term “propaganda” – the term “public diplomacy” was commonly used. Frank Stanton, who left CBS in 1973, subsequently chaired a research report by the prominent American think tank, the Center for Strategic and International Studies (CSIS) in 1975, entitled, International Information Education and Cultural Relations – Recommendations for the Future. The report recommended “that the international information and cultural programs [of the U.S. government] deserve all possible support in the years ahead, that they have demonstrated their success and are therefore an exceptional investment of government energy and the taxpayer’s dollar.”

While head of CBS, Stanton developed relationships with American presidents, whose Cold War strategies he would help promote through his network. When Kennedy became president, he offered Frank Stanton the job as head of the United States Information Agency (USIA), which Stanton declined (though recommended the appointment of Edward R. Murrow, a prominent journalist with CBS, whom Stanton had no lack of problems with). In fact, in 1958, Edward R. Murrow delivered a speech before the Radio-Television News Directors Association in which he “implicitly indicted Stanton” for the way in which he managed CBS, stating: “The top management of the networks... has been trained in advertising, research, or show business... by the nature of the corporate structure, [these managers] also make the final and crucial decisions having to do with news and public affairs. Frequently they have neither the time nor the competence to do this.”

Stanton developed a reputation as a trustworthy propagandist for the Cold War, but was not unwilling to flex his own power when confronted with state power, such as when President Lyndon Johnson, angry at specific coverage of Vietnam on CBS, called up Stanton and stated, “Frank, are you trying to fuck your country?” Stanton refused to budge on his coverage under pressure from the president. Yet still, he remained a propagandist, and even participated in the CIA’s program to infiltrate the domestic media, with general knowledge of the Agency’s program with CBS, though according to one CIA agent involved in the matter, he didn’t “want to know the fine points.”

Stanton, however, was ultimately a corporation man. Not only did he help in the development of the government’s official propaganda systems, but he was a key figure in the promotion of the "corporatization" of news and information. Thus, for Stanton, “information management” was not simply to be done in the interests of the state, but also – and arguably primarily – in the interests of corporations. In Stanton’s own words, “since we are advertiser supported we must take into account the general objectives and desires of advertisers as a whole.” Stanton was not the only executive to voice such views, as one executive at NBC as early as 1940, declared, “we should make money on our news.”

The ‘Social Control’ Society: A Background to ‘Democratic Propaganda’

One of the primary institutions of social control is the educational system. For primary and secondary educational institutions, the original objective was to foster a strong sense of national identity, bringing a cohesive world view to the development of a national citizenry, and thus, to establish a system of social control. For university education, the original and evolving intend had been to develop an elite capable of managing society, and thus, to produce the controllers and technicians of society, itself. As the modern university underwent a major transformation in late 19th century America, it sought to apply the potential of the "sciences" to the social world, and thus, in a society undergoing rapid industrialization, urbanization, poverty, immigration, labour unrest, and new forms of communication, the "social sciences" were developed with an objective of producing social engineers and technicians for a new society of "social control."

The major industrial and financial elites had a direct role to play in the transformation of this educational system, and a substantial interest in the ideologies which would emerge from them. As Andrew Carnegie wrote in 1889, at the top of the list of “charitable deeds” to undertake was “the founding of a university by men enormously rich, such men as must necessarily be few in any country.” It was in this context, of robber barons seeking to remake education, that we see the founding of several of America’s top universities, many of which were named after their robber baron founders, such as Stanford (after Leland Stanford), Cornell (after Ezra Cornell), and Johns Hopkins, who owned the Baltimore & Ohio Railroad.

This new class of industrialists, who emerged out of the Civil War in America, “challenged the position of the old propertied, pre-industrial elite. This struggle crystallized in particular around the reform of the educational system that had legitimated the old elite’s domination.” The modern university was born out of this struggle between elites, with the old educational system based upon religious and moral values, “and the making of gentlemen,” while the “new education” focused on “the importance of management or administration” as well as “public service, [and] the advancement of knowledge through original investigation.”

John D. Rockefeller founded the University of Chicago in 1891, and the President of the University, “initiated a new disciplinary system, which was enormously influential.” Ultimately, it “led to the formation of the department structure of the American university, which was internationally unique,” and was later exported around the world “with the help of American foundations.” This disciplinary system consisted of separating politics from economics (rejecting the notion of "political economy" and its "ideologies"), as ideology was “deemed unscientific and inappropriate in social sciences and political scientists have increasingly seen their function as service to the powerful, rather than providing leadership to populist or socialist movements.”

Nicolas Guilhot wrote in the journal Critical Sociology that since “social reform was inevitable,” these industrialists “chose to invest in the definition and scientific treatment of the 'social questions' of their time,” and subsequently, they “promoted reformist solutions that did not threaten the capitalistic nature of the social order,” and instead constructed a “private alternative to socialism.” Social control was not simply seen as the means through which a society – as it exists – could be maintained, but more often sought to preserve elements of that society (such as its hierarchical structure, the position of the elites) through periods of profound social change. In this sense, the question was “whether the processes of social control are able to maintain the social order [hierarchy] while transformation and social change take place.”

The United States was viewed “as the laboratory for the study of transitional society in the framework of a rapidly changing social structure,” and therefore, at a time when sociology was being established as an intellectual and academic discipline, “the United States could be viewed as a microcosm of social change and disorder.” The sociologist Edward A. Ross was the first to popularize the concept of social control in the American Journal of Sociology in 1896 and 1898, and later in his 1901 book, Social Control. Ross “viewed individuals as objects of society’s domination,” and suggested that society had to establish order “by channeling the behavior of its members into orderly relations.” Ross, largely influenced by Gabriel Tarde, did not believe that individuals were rational, but rather, that they would need to be "controlled" in one fashion or another. As some sociologists lamented in the 1920s, “all social problems turn out finally to be problems of social control,” and “the study of society was the study of social control.”

Sociology largely emerged from the University of Chicago (founded by John D. Rockefeller), with the world’s first department of sociology founded in 1892. The sociologists who rose within and out of the University of Chicago made up what was known as the "Chicago School of Sociology." The school developed the most influential sociologists in the nation, including George Herbert Mead and W.I. Thomas, two scholars who had profound influence on the development of the concept of "social control," and sociologists became “reform-oriented liberals, not radical revolutionaries or conservative cynics.”

The American Journal of Sociology was founded out of the University of Chicago by Albion Small, who was the head professor of the department of sociology, and became the editor of the journal for thirty years from 1895-1925. Between 1915 and 1940, the University of Chicago was the dominant force in sociology in the United States, and “the dominance of the Sociology Department was representative of the social sciences at Chicago during that period.” The school was largely made the center of not only sociology, but many areas of the social sciences, due to funding from outside sources, namely the major philanthropic foundations created by the Robber Baron industrialists in the early 20th century. The foundations became, in effect, engines of social engineering and perhaps the most effective institutions in the application of social control in modern society.

The Foundations of Social Control

The new industrial elite accumulated millions and even hundreds of millions by the end of the 19th century: Andrew Carnegie was worth roughly $300 million after he sold Carnegie Steel to J.P. Morgan in 1901, and by 1913, John D. Rockefeller was estimated to have a personal worth of $900 million. In the late 1880s, Rockefeller met Frederick T. Gates, a minister, educator, and administrator in the Baptist Church when they were negotiating the founding of a new university, which resulted with a pledge of $600,000 from Rockefeller to found the University of Chicago in 1889. At this time, Rockefeller hired Gates as his associate in charge of Rockefeller’s philanthropic ventures. Gates became central in inculcating the notion of “scientific benevolence” within Rockefeller’s philanthropies. As Gates wrote in his autobiography, “I gradually developed and introduced in all his charities the principle of scientific giving.” Gates advised Rockefeller to form a series of “self-perpetuating” philanthropies.

The circumstances in which the Rockefeller Foundation emerged are notable. In 1913, a coal strike began at a Colorado mine owned by the Rockefellers in the small mining town of Ludlow, where roughly 11,000 workers (mostly Greek, Italian, and Serbian immigrants) went on strike against the “feudal domination of their lives in towns completely controlled by the mining companies.” Repression quickly followed, culminating in what became known as the Ludlow Massacre in 1914, with the Rockefellers hiring the National Guard to attack the strikers and destroy their tent city, machine gunning the crowd and setting fire to tents, one of which was discovered to have housed eleven children and two women, all of whom were killed by the fire.

The Congressional Walsh Commission was founded to investigate the activities which led to violent labour repression at the Colorado Fuel & Iron Company in Ludlow, though the scope of the Commission was expanded to study philanthropic foundations themselves. The Commission’s founder, Frank P. Walsh, explained:
...the creation of the Rockefeller and other foundations was the beginning of an effort to perpetuate the present position of predatory wealth through the corruption of sources of public information... [and] that if not checked by legislation, these foundations will be used as instruments to change to form of government of the U.S. at a future date, and there is even a hint that there is a fear of a monarchy.

In 1916, the Walsh Commission produced its final report, the Manly Report (after the research director, Basil M. Manly), which concluded that the foundations were so “grave a menace” to society, that “it would be desirable to recommend their abolition.” Frank Walsh referred to foundations as “a menace to the welfare of society.”

As the Walsh Commission began their work, the Rockefeller Foundation sought to join forces with other major corporate leaders to advance their formation of ideology, and attended a conference “held between representatives of some of the largest financial interests” in the United States. This conference resulted in two approaches being pushed forward in terms of seeking to “educate the citizenry in procapitalistic ideology and thus relieve unrest.” One view was the interpretation that the public was provided with “poor quality of facts and interpretation available on social and economic issues.” Thus, they felt there was a need for a “publicity bureau” to provide a “constant stream of correct information” targeted at the lower and middle classes. The Rockefeller Foundation agreed that a publicity bureau was a good strategy, but added that what was also needed was “a permanent research organization to manufacture knowledge on these subjects.” A publicity bureau would “correct popular misinformation,” while a research organization would study the “causes of social and economic evils,” though of course avoiding problematic considerations of institutional analysis or radical critiques. They were instead to focus on “disinterested” and “detached” studies of social problems, portraying themselves as scientists and technicians for society, focused on reform and social control.

Rockefeller interests quickly undertook both strategies. While the Foundation was engaged in the manufacture of ideology (which specifically states that it is “non-ideological,” meaning that it supports power), the corporate arm of the Rockefeller empire hired the first public relations man, Ivy Lee, a Progressive era journalist. The Foundation hired the Canadian labour expert, William Lyon Mackenzie King (who would later become Canada’s longest-serving Prime Minister) to manage “labour relations,” promoting “company unions” over “autonomous unions,” thus undermining the freedom of labour to organize and oppose the social order as a whole, bringing them firmly within the corporate-state ideology and institutions.

Ivy Lee, for his part, attempted to undertake “damage control” for the Rockefellers, who were widely despised at the time, acting as a PR man, disseminating communiqués to media and educators attempting “to cultivate middle-class allies.” His efforts at stemming animosity toward the Rockefellers following Ludlow failed, but for years he continued to present “the human side of the Rockefellers,” earning him the rather unfavourable nickname “Poison Ivy.”

While Lee’s specific efforts were unsuccessful, the ideas behind them continued to grow and evolve. Two major social engineering projects were underway: one, the manufacture of ideology, largely the initiative of philanthropic foundations (and the social sciences), and the other, public relations as a modern form of propaganda. Both of these social engineering projects were designed to ensure social control through social engineering, and both were to have a profound impact upon both the definition and function of modern “democracies.”

Through the educational system, the social sciences, philanthropic foundations, public relations, advertising, marketing, and the media, America and the industrialized states of the world developed a unique and complex system of social control and propaganda for the 20th century and into the 21st. It is imperative to recognize and understand this complex system if we are to challenge and change it.

Friday, October 26, 2012

Rebooting Our Definition of “Patriotism”

Limitless hypocrisy...

Beyond Flag Waving
by DAVID MACARAY

Which is more “patriotic”—to loyally refrain from criticizing your government’s foreign policies, no matter how brutal or peremptory they may be (including those that result in quasi-legal, immoral military adventurism that kills thousands of innocent civilians), or to loyally pony up when your government asks you to make a relatively minor economic sacrifice?

Two specific examples. Who were the more “patriotic” citizens—those anti-war protesters, both young and old, who marched in the streets during the tumultuous Vietnam era of the 1960s and 1970s, or those mega-wealthy citizens of 2012 who have renounced their U.S. citizenship and re-located to foreign countries in order to avoid paying higher taxes? Call me a starry-eyed idealist, but I like to think it’s the former.

On June 25, the New York Post reported that twice as many ultra-rich Americans as in the previous year are expected to renounce their U.S. citizenship in order to avoid higher taxes. Granted, the New York Post doesn’t have the institutional whiskers of, say, the New York Times, but the Post does provide the requisite statistics and attribution to make its story credible.

The Post reported that, in 2012, approximately 8,000 Americans are projected to renounce their U.S. citizenship in order to seek refuge in more tax-friendly countries (Costa Rica, Singapore, Cayman Islands, Antigua, et al). They compare this figure to the 3,805 Americans who did so in 2011.

The article quotes Jim Duggan, a lawyer at the law firm of Duggan Bertsch: “High net-worth individuals are making decisions that having a U.S. passport just isn’t worth the cost anymore,” he said. “They’re able to do what they do from any place in the world, and they’re choosing to do it from places with much lower tax rates.” He fails to mention that federal income tax rates are lower than they’ve been in several decades.

So, whether these fat cats live in stately mansions within gated communities in the U.S., or in stately mansions within gated communities in Costa Rica, it’s not going to make any difference to them because they don’t “belong” to either community and never will belong. In truth, the very concept of belonging to a “community” (in the sense that most of us regard that term) is meaningless to them.

Duggan’s observation that wealthy people can now “do what they do from any place in the world” is actually quite chilling. Drones can kill people anywhere, satellites can spy on people anywhere, computer viruses can be sent from anywhere, and vast fortunes can be made from anywhere. Not to be morbid, but it’s worth noting that those philosophers who predicted that “abstraction” would eventually result in the disintegration of our here-and-now world, and lead to widespread alienation, may have been right.

When I mentioned this story to a Republican friend of mine, and went on a prolonged rant about the alarming greed and selfishness of these unpatriotic bastards, he instantly seized upon what he believed to be a brilliant counter-argument. He smugly asked if my scorn was reserved only for “very successful Americans” (his words) or if I were also willing to label “unpatriotic” those Mexicans who fled their home country to seek economic gain in the U.S.

Weak argument. People escaping grinding poverty by crossing national borders is one thing, but people who, literally, have more money than they know what to do with—who already have their yachts and cars and art and luxury homes, but who would rather relinquish their national identity than share a small fraction more of their wealth with their own government—is a whole other deal. Good riddance to them.

Friday, May 11, 2012

Super Rich Renounce US Citizenship to Make Tax Evasion Easier

The world’s super rich are fashioning themselves into a new global tribe of footloose and stateless, leaving the rest of us to foot the ultimate bill. 
By Sam Pizzigati, Too Much: A Commentary on Excess and Inequality
May 10, 2012
Back in 1863, in the middle of the Civil War, a short story took the American reading public by storm. Edward Everett Hale’s The Man Without a Country told the tale of a poor treasonous soul sentenced to spend the rest of his life endlessly sailing the seven seas, in perpetual exile, as a prisoner aboard Navy warships.

How sad, sighed 19th-century Americans.

How quaint, muse many of our 21st-century super rich. These awesomely affluent simply do not see statelessness as a penalty. They see statelessness as a goal.

And the ranks of our contemporary “men without a country” are increasing. The number of Americans who’ve formally renounced their U.S. citizenship has jumped by over seven-fold, from 235 in 2008 to 1,780 last year.

The spark for this surge in statelessness? Since 2008, U.S. tax officials have been endeavoring to clamp down more firmly on overseas tax evasion. Swiss private banks, for instance, have come under new pressure to divulge data on the millions wealthy Americans have stuffed in secret accounts.

That pressure has some of those wealthy irritated enough to renounce their ties to Uncle Sam. The cost to renounce: a $450 paperwork fee and an “exit tax” on unrealized capital gains for renouncers who hold assets worth over $2 million — or have paid over $151,000 to the IRS in any recent year.

But the affluent who’ve gone to the trouble of formally renouncing their citizenship make up just a tiny share of what the Financial Times has labeled the “stateless super rich.” These uber wealthy have no interest in the notoriety of renunciation. They just live their lives as if they had no nation to call their own.

The most celebrated of these casually stateless? That would have to be Nicolas Berggruen, a 52-year-old worth over $2.3 billion who has spent the last decade hopping the world from one five-star hotel to another.

The German-born Berggruen grew up in Paris and went to college in New York. He made a fortune in hedge funds and now hobnobs with world political leaders and Hollywood celebrities. Reporters have dubbed him the “homeless billionaire.”

Few stateless super rich follow Berggruen from hotel to hotel. Most all of the vagabonding wealthy have personal residences. Lots of them.

Typically, the Financial Times reported last month, a stateless super-rich household will have one or two properties in their “country  of principal residence,” another in London, New York, or some other “global city,” a “holiday home” in a soothingly warm climate, and maybe still another in the Alps. They’ll shift their household, by season, from one to the other.

Among the super rich, this perpetual-motion existence has become almost  de rigueur, notes Jeremy Davidson, a London property consultant who handles properties that cost at least £10 million, the equivalent of over $16 million.

“The more money you have,” explains Davidson, “the more rootless you become because everything is possible.”

In their chase after ever fresher possibility, the stateless super rich have created an entirely new real estate market category. Realtors generally define this new “super-prime” category as the top 5 percent of properties in the global urban hotspots the world’s deepest pockets most enjoy frequenting.
 
Price counts as no object in “super-prime” real estate. The rich see, the rich like, the rich refuse to take “no” for an answer. They merely up their offers, until they get legal title to the prime properties they most covet.

Such “super-prime” bidding wars have kept the price of luxury real estate soaring at the same time the more ordinary global housing market is still reeling. So far this year in Manhattan, four luxury co-op apartments have sold for over $30 million each, a total, notes  Crain’s New York Business, that matches the combined sales at that level over the previous three years.

Just how many potential stateless super rich are currently roaming the world? Late last year, the Singapore-based Wealth-X consulting firm put the overall number of global ultra wealthy worth at least $500 million at about 4,650. These super rich together hold an estimated $6.25 trillion in assets.

That’s more than enough, note urban planners, to create havoc in the hotspots where the stateless super rich most often gather. Their gathering, a veritable gentrification on steroids, tends to supersize prices for all sorts of local products and services — and price out local residents.

The massive mansions and apartments pf the stateless super rich also exacerbate local housing shortages — and constitute as assault on any healthy sense of urban community. These super-rich properties sit idle most of the year. The resulting emptiness, notes Columbia University sociologist Saskia Sassen, sucks the neighborhood vitality out of great urban centers.
The super rich don’t notice. Or care. They have no interest in putting down roots. During their brief seasonal sojourns, they live in isolation from the greater community around them. They venture out into local public life only long enough to corrupt it with trinkets for local pols who promise to keep tax rates toothless.

The stateless protagonist in the classic short story Edward Everett Hale penned nearly 150 years ago ends up desperately yearning to rejoin the society he so treasonously spurned. Today’s stateless super rich don’t figure to display any similar yearning. They’re having too grand a time. At our expense.

Thursday, January 5, 2012

Have the Super-Rich Seceded from the United States?

The Joke is on the Rest of Us
by MIKE LOFGREN

It was in 1993, during congressional deliberation over the North American Free Trade Agreement. I was having lunch with a staffer for one of the rare Republican members of Congress who opposed the policy of so-called free trade. I distinctly remember something my colleague said: “The rich elites of this country have far more in common with their counterparts in London, Paris, and Tokyo than with their own fellow American citizens.”

That was just the beginning of the period when the realities of outsourced manufacturing, financialization of the economy, and growing income disparity started to seep into the public consciousness, so at the time it seemed like a striking and novel statement.

At the end of the cold war many writers predicted the decline of the traditional nation state. Some looked at the demise of the Soviet Union and foresaw the territorial state breaking up into statelets of different ethnic, religious, or economic compositions. This happened in the Balkans, former Czechoslovakia, and Sudan. Others, like Chuck Spinney, predicted a weakening of the state due to the rise of Fourth Generation Warfare, and the inability of national armies to adapt to it. The quagmires of Iraq and Afghanistan lend credence to that theory. There have been hundreds of books about globalization and how it would break down borders. But I am unaware of a well-developed theory from that time about how the super-rich and the corporations they run would secede from the nation state.

I do not mean secession in terms of physical withdrawal from the territory of the state, although that happens occasionally. It means a withdrawal into enclaves, a sort of internal immigration, whereby the rich disconnect themselves from the civic life of the nation and from any concern about its well-being except as a place to extract loot. Our plutocracy now lives like the British in colonial India: in the place and ruling it, but not of it. If one can afford private security, public safety is of no concern; if one owns a Gulfstream jet, crumbling bridges cause less apprehension – and viable public transportation doesn’t even show up on the radar screen. With private doctors on call, who cares about Medicare?

To some degree the rich have always secluded themselves from the gaze of the common herd; for example, their habit for centuries has been to send their offspring to private schools. But now this habit is exacerbated by the plutocracy’s palpable animosity towards public education and public educators, as Michael Bloomberg has demonstrated. To the extent public education “reform” is popular among billionaires and their tax-exempt foundations, one suspects it is as a lever to divert the more than one-half trillion dollars in federal, state, and local education dollars into private hands, meaning themselves and their friends. A century ago, at least we got some attractive public libraries out of Andrew Carnegie. Noblesse oblige like Carnegie’s is presently lacking among our seceding plutocracy.

In both world wars, even a Harvard man or a New York socialite might know the weight of an army pack. Now the military is for suckers from the laboring classes whose subprime mortgages you just sliced into CDOs and sold to gullible investors in order to buy your second Bentley or rustle up the cash to employ Rod Stewart to perform at your birthday party. Courtesy of Matt Taibbi, we learn that the sentiment among the super-rich towards the rest of America is often one of contempt rather than noblesse; Bernard Marcus, co-founder of Home Depot, says about the views of the 99 percent: “Who gives a crap about some imbecile?”

Steven Schwarzman, the hedge fund billionaire CEO of the Blackstone Group who hired Rod Stewart for his $5-million birthday party, believes it is the rabble who are socially irresponsible. Speaking about low-income citizens who pay no income tax, he says: “You have to have skin in the game. I’m not saying how much people should do. But we should all be part of the system.” But millions of Americans who do not pay federal income taxes pay federal payroll taxes. These taxes are regressive, and the dirty little secret is that over the last several decades they have made up a greater and greater share of federal revenues. In 1950, payroll and other federal retirement contributions constituted 10.9 percent of all federal revenues; by 2007, the last “normal” economic year before federal revenues began falling, they made up 33.9 percent. By contrast, corporate income taxes were 26.4 percent of federal revenues in 1950; by 2007 they had fallen to 14.4 percent. Who has skin in the game now?

As is well known by now, Schwarzman benefits from the “Buffett Rule:” financial sharks typically take their compensation in the form of capital gains rather than salaries, thus knocking down their income tax rate from 35 percent to 15 percent. But that’s not the only way Mr. Skin-in-the-Game benefits: the 6.2-percent Social Security tax and the 1.45-percent Medicare tax apply only to wages and salaries, not capital gains distributions. Accordingly, Schwarzman is stiffing the system in two ways: not only is his income tax rate less than half the top marginal rate, he is shorting the Social Security system that others of his billionaire colleagues like Pete Peterson say is unsustainable and needs to be cut.

This lack of skin in the game may explain why Willard Mitt Romney is so coy about releasing his income tax returns. It would also make sense for someone with $264 million in net worth to joke that he is “unemployed,” as if he were some jobless sheet metal worker in Youngstown, when he is really saying in code that his income stream is not a salary subject to payroll deduction. The chances are good that his effective rate for both federal income and payroll taxes is lower than that of many a wage slave.

The real joke is on the rest of us. After the biggest financial meltdown in 80 years – a meltdown caused by the type of rogue financial manipulation that Romney embodies – and a consequent long, steep drop in the American standard of living, who is the putative front-runner for one of the only two parties allowed to be competitive in American politics? None other than Mitt Romney, the man who says corporations are people. Opposing him, or someone like him, will be the incumbent president, Barack Obama, who will raise up to a billion dollars to compete in the campaign. Much of that loot will come from the same corporations, hedge fund managers, merger and acquisition specialists, and leveraged buyout artists the president will denounce in pro forma fashion during the campaign.

The super-rich have seceded from America even as their grip on its control mechanisms has tightened.

Monday, October 17, 2011

Cops For Sale

by GEORGE OCHENSKI
 
Alarms went off when it was revealed that the armed forces of the United States were using increasing numbers of private contractors to provide everything from transportation to security in war zones around the globe.

Those alarms clanged louder when the indiscriminate slaughtering of unarmed Iraqi civilians by the notorious security firm formerly known as Blackwater were exposed.

Now, the war has come home as wealthy private corporations hire not only security firms, but also public law enforcement officers to ensure that the riff-raff, formerly known as citizens of the U.S., stay out of the way of their money-making schemes and political manipulations.

The Praetorian Guard was established by the emperors of Rome to ensure that neither citizens nor disgruntled military units could harm them. While it may have made sense at first, the story soon changed as the Praetorians became less of a security force to protect Rome’s rulers than hired killers for those who could afford them.

Now a new and dangerous Praetorian Guard is emerging in the U.S. What makes it even worse is that our new Praetorians are not simply hired killers like Blackwater, but officers of public police forces whose salaries and pensions are provided by taxpayers until such time as they are needed by those with the wealth to hire them for private purposes.

If that sounds far-fetched, consider the actions of the “white shirts” I mentioned in last week’s column, in the ongoing Occupy Wall Street protests. A New York City policeman wearing a white shirt, which is supposed to differentiate supervisors from the blue-uniformed line officers, walked up to several women who were already corralled in a police barricade and blasted them in their faces with pepper spray. The women collapsed screaming in pain as the officer who sprayed them turned away smiling.

Shortly after that incident, it was revealed that JP Morgan Chase, one of Wall Street’s most powerful players, had donated $4.6 million to the New York City Police Foundation, the largest such donation ever. JP Morgan Chase CEO and Chairman Jamie Dimon could not have been more revealing, saying, “These officers put their lives on the line every day to keep us safe. We’re incredibly proud to help them build this program and let them know how much we value their hard work.”

The donation is supposed to pay for 1,000 new patrol car laptops and security monitoring software for the NYPD main data center. Surely such a donation couldn’t buy off the cops, could it?

Consider that last week’s column also noted that 700 citizens were arrested trying to cross the Brooklyn Bridge. Where were they headed? To protest in the Chase Manhattan Plaza.

Maybe the donation and the arrests aren’t connected. But if you believe that, perhaps you’d be interested in buying that bridge.

There’s no need for speculation as to whether those with enough money can buy public police protection. They can. In a program started by former New York Mayor Rudy Giuliani called the “Paid Detail Unit,” private corporations can hire New York City policemen to protect their interests for a mere $37 per hour each, with a 10 percent “administrative fee” paid directly to the police department.

According to a recent CounterPunch article by Pam Martens, not only do these hired cops get to carry guns and handcuffs, they also have the authority to arrest citizens at the behest of the private wealth that hired them. In 2010, corporations such as Goldman Sachs, the World Financial Center and the New York Stock Exchange spent almost $12 million doing just that.
 
There’s no need to look to the East Coast, though, when we have examples right here at home.

Remember those mega-loads Exxon Mobil wanted to ship through Idaho and Montana on narrow, two-lane roads? Guess whom they hired to ensure that no protestors barred their way?

Our own Montana Highway Patrol.

Like most Montanans, I’ve always respected our Highway Patrol officers. So how is it that they are now for hire by anyone with the money to do so, and they can sweep the citizens who normally pay their wages out of the way of private corporations?

Exxon Mobil is “required to pay for a two-car safety escort by the Montana Highway Patrol,” the Missoulian noted recently. Yet the corporations aren’t even required to tell the Highway Patrol before they move their loads. “‘To be honest, we’re kind of lost, too,’” Montana Highway patrol Sgt. Jason Holdenstab told the paper. Holdenstab, based in Helena, is in charge of scheduling the safety escorts. “I’m at the mercy of [transport company Mammoet] when they send me a schedule,” he said.

Having our Highway Patrol “at the mercy” of a mega-corporation doesn’t sound like a very good idea.

Nor does getting beaten, gassed or arrested by privately hired cops.

But that’s the state of America today, as the new Praetorian Guard emerges to stand between citizens and the corporations who plunder them. And the silence from our political leaders is deafening.

Sunday, August 14, 2011

Texas raids fund for poor to keep taxes low

Posted on 08.12.11
By Muriel Kane - RAW Story

Texas utility customers pay a little extra on their bills that is supposed to go into a fund to help the poor cover their own utility payments. But in a year of record heat, less than half the fund is being paid out, forcing people to do without air conditioning in triple-digit temperatures.

CBS reports that the Texas legislature has repeatedly approved raiding the fund in order to balance its budget without raising taxes. By 2013, there will be $900 million sitting unspent, with no plans to ever pay it out.

And not only are the poor being shortchanged, but members of the middle class who pay utility bills are being charged that extra fee which does nothing but subsidize keeping taxes low on the wealthy.

This video is from CBS News, posted August 12, 2011.



Tuesday, August 2, 2011

Who Wins, Who Loses in the Debt Deal...


Congress might pass a debt deal this week that would raise the debt ceiling into 2013 and reduce government spending by $2.5 trillion. After all the debate over who would be affected—or not—what does the final policy scoreboard say?

In short, it’s a rout of the lower and middle classes by the wealthiest Americans. Since the deal relies entirely on spending cuts with no revenues—don’t believe the White House spin that revenues are possible, because that would require Republicans to suddenly desire them—the wealthy escape any sacrifice since very few of them rely on the government services that will be cut.

Rather, as Brookings Institution senior fellow William G. Gale writes, “Low- and middle-class households have seen stagnating or declining earnings over the past few decades, and they have been hit hard in the Great Recession by the housing market collapse and the job market collapse. Now, they are being asked to shoulder—via spending reductions—all of the fiscal reduction agreed to so far.” (Yes, that Brookings Institution).

How specific cuts will be determined, and who exactly is affected, is still hard to know. The deal truly “kicks the can down the road,” in the overused Washington parlance. The $917 billion in “immediate” cuts are not really immediate, nor enumerated. Federal spending will operate under caps over the next ten years equal to $917 billion less than what was projected, but the exact areas of reduction are unknown and obviously depend quite a bit on political outcomes. The caps are relatively modest until 2013, and a Republican Congress with a budget proposal from President Rick Perry would make much a different decision about where to cut than would Obama, Pelosi and Reid.

Then, $1.5 trillion in additional cuts will be determined by a so-called super committee of six Democrats and six Republicans. Entitlement programs like Medicare, Medicaid and Social Security are subject to “across-the-board” cuts here, and if no agreement is reached by November 23, a “trigger” will be pulled, with the gun aimed squarely at senior citizens and the Pentagon.

So there are a lot of permutations for these cuts—but make no mistake about who is exposed, and who isn’t. Cuts are guaranteed, revenue is not. Here’s a quick rundown of the larger bill:
Who is exposed:

Veterans: Almost half of the first round of cuts will come from “security spending,” which includes the Pentagon budget but also the Department of Homeland Security, the State Department and notably veterans benefits and compensation. The White House assured veterans they won’t be harmed if the trigger is pulled, but did not assure them they are safe from any of the preceding cuts. More than 2.2 million veterans have served in Iraq and Afghanistan since September 11, 2001, many of whom have been seriously injured and require extensive care. The Disabled Veterans of America already has said it is “anxious” to see how these spending cuts are assembled.

Students: Graduate students would be the hardest hit, as the bill proposes an elimination of the interest subsidy on federal student loans for “almost all” of them. This means that beginning July 1, 2012, grad students will be responsible for the interest on their loans while in school and during any subsequent deferment period. Also, while the federal government currently offers subsidies for on-time payments in order to promote responsible pay-backs, they will be eliminated under the debt ceiling deal. Also, education accounts for the largest share of non-defense discretionary spending. It’s nearly inconceivable that budget-cutters won’t target that juicy budget line in making their cuts.

Seniors: As noted, Medicare is subject to across-the-board cuts in the super-committee, and if the trigger is pulled, provider payments will be slashed—though only up to 2 percent. The makeup of the super-committee and outside-the-Beltway campaigns to protect Medicare will determine a lot about the degree of cuts, but remember that inside the Beltway, the “left” side of the debate has been defined by President Obama and the Gang of Six as raising the eligibility age to 67 and/or $500 billion in cuts. So this probably won’t end well.

The poor: Again, Medicaid will be subject to cuts by the super-committee. The Republican position, articulated in the Ryan budget, is a devastating 35 percent reduction in the next ten years, even as health costs rise. (However, Medicaid is protected from any cuts if the trigger should go off). Beyond that, federal housing assistance is the fourth largest slice of non-defense discretionary spending and is thus a likely target for cuts.

The unemployed: Unlike what happened during the December showdown over the Bush tax cuts, the White House was unable (or unwilling) to secure any extension of help for the jobless. That December extension will expire at the end of this year, and this was one of the last best shots to make sure that 3.8 million people won’t lose their benefits at that point.

Who’s protected:

The wealthy: Up until very recently, Obama and most Democrats were demanding that wealthy Americans pony up for some deficit reduction. The demands were admittedly narrow, and focused on itemized deductions on people who owned private jets or multiple homes—but both groups are exempted from sacrifice under the current deal. The super-committee could theoretically approve tax increases, including ending those loopholes, but House Speaker John Boehner has already sworn  that won’t happen, and it’s tough not to believe that. If the Republicans on the committee refuse to back down on revenues, as they have in every recent negotiation, Democrats on the committee will be facing Medicare-slashing trigger unless they acquiesce—as they have in every recent negotiation.

Wall Street tycoons: In his budget proposal earlier this year, Obama recommended taxing the profit share of private equity managers, venture capitalists and other Wall Street high-rollers at the ordinary personal income tax rate, instead of at the smaller capital gains rate. No such deal was struck under the current bill, so these mega-rich traders won’t spend a penny reducing the deficit—again, unless Boehner undergoes a religious experience and appoints pro-tax, anti–Wall Street Republicans to the super-committee. (He’d have to spend a long time looking first).

Oil and gas companies: Obama repeatedly demanded that oil and gas companies lose their tax breaks, since they are raking in record profits and enjoy many deductions and subsidies in the tax code. “If we choose to keep a tax break for oil and gas companies that are making hundreds of millions of dollars, that means we’ve got to cut some kids off from getting a college scholarship [and] that means we’ve got to stop funding grants for medical research,” Obama said in June. Since those tax breaks were preserved, in hindsight that soundbite was of a prediction than a warning.  

Friday, January 7, 2011

The Rich Can Already Call It a Year

Cross-posted from the “Arguing the World” blog at Dissent magazine.
by Mark Engler

Well, 2011, it’s been nice. But I think we’ve worked enough already. In any case, we’ve already made enough money. Time to call it a year.

This is a ridiculous idea, right? Yet, as the Canadian Financial Post reported at the beginning of the week, “Top CEOs will have earned average workers’ full annual pay by 2:30 p.m. today.” The “today” in question was Monday, January 3, the first business day of the year. Here’s their explanation:

Canada’s best-paid chief executives earned 155 times the average income earner during the darkest days of the recession, the Canadian Centre for Policy Alternatives said in a report Monday.

Declaring that those 100 chief executives were “recession proof,” the think tank said they earned an average of $6.6 million in 2009 compared with $42,988 for the average Canadian.

That means by 2:30 p.m. Monday, the first working day of the year, those CEOs will have earned the full year’s wage of the average Canadian, said Hugh Mackenzie, the author’s study and research associate for the centre.

The discrepancy is almost 50 per cent higher than just over a decade ago, in 1998, when CEOs took home an average pay 104 times higher than the average wage earner, the centre said.

“Even that extraordinary number understates the real story,” Mackenzie wrote. “Thanks to a change in corporate reporting introduced in 2008, we only have a conservative statistical estimate of the stock options that make up about one third of CEOs’ 2009 pay. The public will never know how much these CEOs actually got paid in 2009.

I’m not sure how the Canadian Centre for Policy Alternatives, when producing this brilliant bit of PR, crunched the numbers to come up with the exact time of 2:30 p.m. on January 3. However, their general point stands. And, in fact, the situation is even worse in the United States. Here, as the AFL-CIO has tracked, the average compensation for a Fortune 500 CEO is $9.25 million per year. Even if we grant that these businesspeople are workaholics putting in seventy-hour workweeks and taking no vacation, that comes to $2,541 for every hour they labor.

Calling it quits after the first week of January, these American CEOs would each be able to take home an annual income of over $177,000.

Whether the world would be worse off if they did check out for the rest of the year is a debatable point. As CNN Money has noted, not all of the companies run by the top-twenty-earning CEOs were even profitable. For example, in 2009 Johnson & Johnson experienced its first annual sales decline in seventy-six years, yet its CEO, William Weldon, was nevertheless paid $22.8 million, in large part for making “difficult personnel decisions.” (Translation: firing as many as 8,000 workers.)

Of course, even these Fortune 500 CEOs are not making money very quickly by the standards of the financial sector. The New York Times reported that the top twenty-five hedge fund managers made $25.3 billion between them in 2009, with George Soros personally raking in $3.3 billion. That’s $8.2 million per day.

It goes without saying that, while the incomes of the rich may be “recession proof,” that is not the case for the wages of the rest of us. But a lot of people don’t realize that this is not just a result of the recession of the past couple years. Over the last several decades, as earnings at the very top have skyrocketed, incomes for those outside of the top 20 percent have been basically stagnant, with productivity gains not translating into wage increases. And we are working ever more hours just to stay afloat.

I have written a couple times before about Take Back Your Time Day, which takes place on October 24 each year. The notion behind this holiday is that if working hours in the United States were on par with those in Germany, the Netherlands, or Norway, then, come October 24, we’d be able to take the rest of the year off.

If you don’t want to use those other countries as points of comparison, that date could be adjusted. Economist Juliet Schor explains that “the average worker [in the U.S. was] putting in 204 more hours in 2006 than in 1973.” That’s a full five weeks of extra work per year. If Americans just worked the same amount they did in the early 1970s, we’d be able to finish up our working year on about November 25. This would mean turning the entire month of December into a glorious annual sabbatical. Or we could spread the free time out over the entire year. (Three Fridays off per month, anyone?) The result: a far more reasonable balance between work, family, and leisure–a standard of life that used to be widely enjoyed in this country.

Certainly, that’s not as sweet as being able to take your hard-earned week’s pay of $177,000 and clocking out from now until 2012. But it’s something the rest of us can dream of–and demand.

Wednesday, December 22, 2010

The French State Prepares for Class War

(Don't worry, it will happen here soon, too.--jef)


Sarkozy's Strategy of Violence
By LARRY PORTIS

"Bring the War home.” Here was a slogan that resonated throughout the Vietnam War era. It was a good formula, and temporarily successful in that it expressed and reinforced combativeness on the part of those who contested the war. The idea was that the anti-war movement must force the state to confront, within the United States and other western, industrialized countries, a mirror image of its imperialist actions abroad.

In France, today, this idea is taking a surprising turn. It is the French president who is bringing the war home.

One of the particularities of France has been that the propensity to go out into the streets to fight oppressive institutions is accepted as part of a long established political tradition. This is still the case. But another particularity of this country is the tradition of state repression. If the contemporary history of France is punctuated by revolts and revolutions, it should not be forgotten that bloody crushing of popular movements followed the events of 1789, 1830, 1848, 1871 and 1936. Overseas, the French military carried out genocidal “pacifications” of populations in Indochina, Morocco, Algeria and Madagascar that have been emulated by other imperialist states, with the United States in the lead.

In a country once called the “political laboratory of the world” (by Karl Marx), the present French government is quickening the pace towards the creation of a “police state” in which the forces of repression are not only centralized but also militarized in the strictest sense of the word. The French state is now perfecting its police power in dealing with “civil disturbances” by militarizing population control.

There are two models for this effort. The first is the USA PATRIOT ACT that centralized “intelligence” agencies under the auspices of the Department of Homeland Security and erased the distinction between international intervention and domestic policing. The second is the organization of the national security forces in Israel, where the operative principle is the occupation of hostile territory.

The most serious step in the centralization and militarization of the police occurred in July 2010. It was then that the National Assembly enacted into law Nicolas Sarkozy’s proposal to give the Ministry of the Interior financial control over the famous Gendarmes, traditionally considered to be part of military defense, but in reality acting outside the cities as a law enforcement force.

From 1921, the Gendarmerie gained special status as a special military corps with an ambiguous kind of autonomy. They were not called upon to engage in crowd control or in real military operations. They are part of the military establishment, but not the regular army. In general, the gendarmes have enjoyed a reputation as being relatively independent of political interference. Since the 1960s—and a series of incredibly popular films staring the beloved Louis de Funes—the gendarmes entered contemporary folklore as the most respected law enforcement agency in France.

But now their independence is seriously compromised, and so will be the respect in which they are held. Not only has Sarkozy proposed that a contingent of Gendarmes be sent to Afghanistan, his incorporation of them into the police means that the distinction upheld until now between public service and repression of the population is effectively obliterated.

Sarkozy has also instituted a quota system—a set of quantitative performance standards—that has pushed the police to arrest people in ever-increasing numbers.

Now, in France, people can be held in detention for 24 to 48 hours without being formally charged, a practice called garde à vue (provisional detention). The idea is that, during this time, the police will be able to question and investigate a suspect without interference. In other words, in the absence of any principle of habeas corpus, detention is used to extract confessions or to simply punish those who show lack of respect for police authority.

In recent years the practice has reached such proportions that citizens groups have been created to act against it. In 2009, approximately 900,000 people were detained in this way (out of a population of 65 million). This is almost double the number so detained during the year previous to Sarkozy’s election in May 2007. It is frequent that the police beat people who express indignation when they are arrested or incarcerated. It is invariably claimed that they violently resisted, injuring a policeperson, who then files a complaint against the real victim. Protesting by-standers also frequently receive this treatment. As Amnesty International observed in its annual reports of 2005 and 2009: “Amnesty International must conclude that, at the present time in France, law-enforcement agents enjoy practical impunity.”

The connection with Israel is paramount in Sarkozy’s strategy. Although no official pronouncements have been made, a highly respected weekly newspaper, Le Canard enchaîné, has reported rumors from the ranks of French internal security forces that the Israeli national police, the 26,000-member-strong Mishtara, is now the model, given its fusion of population control, policing powers, intelligence activities and counter-terrorism operations.

Already in 2005, after days of insurrection in some French suburbs, Israeli experts in urban counter-guerilla operations reportedly visited Paris, presumably at the behest of the French authorities (Sarkozy was then Minister of the Interior). In June 2010, it was reported that officers of the Israeli army participated in combat simulations in France and that their French counterparts would soon go to Israel “for combat training in inhabited zones”.

Israeli technology is another dimension of this collaboration, although it is not yet considered that the French population is ready to accept some of the more interesting innovations. For example, the Shofar (Hebrew for a trumpet made of a ram’s horn), an Israeli “sound cannon” that emits a noise comparable to a fighter jet flying directly over your head (145 decibels) was rejected. Colonel Didier Quenelle of the Gendarmerie in the Saint Astier (Dordogne) training center explained to Hacène Belmessous in January 2010 (cited in Belmessous’ book Opération Banlieues, 2010) that he refused to test the device. However, Quenelle’s new superiors have not ruled it out. “We concluded that many demonstrators of different ages would be injured and that the capacity of our fellow citizens to accept such a tool seems problematical,” it was said in an official report, which nevertheless went on to call for tests. “Rubber bullets”, on the other hand, have been accepted.

Why is the French government gearing up for combat operations in cities? In part it is due to the phobias and activism of Nicolas Sarkozy, although the structural instability of the French economy and expected social explosions—such as those breaking out in Greece, England, Ireland and elsewhere—underlie the general situation.

In fact, Nicolas Sarkozy has now been responsible for law enforcement in France for more than eight years. And since he became Minister of the Interior in 2002, police brutality has been increasing. It is therefore not surprising that “security” issues are central in his policies. Ignoring any criticism that he is responsible for the growing insecurity, his tactic is to claim that crime is on the increase and that penalties must be increased. For him, those who protest against police actions are irresponsible at best, and likely part of the problem in some more substantive way.

Here is a sketchy chronicle of some of Sarkozy’s more recent exploits.

On October 26, 2005, still minister of the interior, but already campaigning for the presidency, Sarkozy made a surprise visit to the suburban town of Argenteuil to visit the local police station. Objective: to show his unqualified support for the police. Finding himself hassled by 200 young residents, but surrounded by riot police guards, he declared to the ubiquitous cameras that he was going to get rid of this “racaille” (literally “scum”), meaning the young people of the suburbs where working-class people are concentrated including, naturally, a high proportion of immigrant workers of different generations and their children.

The next day, in Clichy-sous-Bois, another suburban community, two teenagers were electrocuted trying to hide from police behind a wire fence enclosing an electrical power transformer. The police claimed they were investigating thieves but did not chase the boys, a claim denied by witnesses whose testimony was subsequently confirmed. The boys were playing soccer when approached, and ran because of a generalized fear of the police and the all-too-frequent interrogations inflicted on young males in the neighborhood. Six days of rioting ensued during which the police and residents engaged in continuous clashes.

After Sarkozy was elected president on May 6, 2007, three nights of rioting followed in cities throughout France during which 1,400 automobiles were burned, store windows were smashed and other damage occasioned.

On November 25, 2007, riots broke out in Villiers-le-Bel, another suburb north of Paris. Two nights of combat between the police and young residents followed the deaths of two teenagers on a mini motorcycle when a pursuing police patrol car ran into them. (It later came out that the police had lied about the speed their vehicle was traveling when it ran over the teenagers.) Around 100 police and firemen were injured. Shots were fired at the police from high-rise buildings.

In response to the events of the previous November, on February 18, 2008 33 people were arrested at dawn by no less than 1,100 police of different types who converged on a residential complex composed of high-rise apartment buildings. The consequences are telling for the pursuit of justice. Six months later, in July 2010, five of the 33 young people arrested were sentenced to 3 to 5 years in prison on the strength of testimony from one anonymous informer who received a monetary bounty for his or her efforts.

But here a paradox must be mentioned. After all, Sarkozy was elected by 54 per cent of those voting in the May 2007 election. And there were many people in the suburbs believing Sarkozy would take action to make their neighborhoods more secure. In reality, he was largely responsible for this violence. What people didn’t understand is that Sarkozy needs to be able to point to insecurity in order to justify his repressive and regressive policies.

This has now changed. Sarkozy is less popular with such people, but it is too late. Now he has an absolute majority in the National Assembly, where his proposed laws and policies are rubber-stamped.

Yet even before the election Sarkozy was unpopular with people in general. After five years of Sarkozy as Minister of the Interior—or the premier flic (tr. “top cop”) in France—most residents in the poor suburbs already understood. The 35 per cent who voted for him there certainly helped push him over the top and win the election. But the others detest him to the point that Sarkozy has been unable to visit their neighborhoods for fear of causing riots.

This is now true everywhere in France. Wherever Sarkozy goes, poor suburb or not, the area he visits is emptied and sealed-off from the population. When a crowd is needed, people are generally recruited from his political party—the UMP, Union for a Popular Movement—and the participants are given “invitations” that allow them to go through police barriers! Everyone else—quite rightly considered potential protesters—are held blocks away behind police barricades. Tear gas and clubs are used in the event of attempts to break through the barriers.

The demonstrations against the reform of the retirement system in October and November 2010 provided additional evidence of militarizing urban population control. In Lyon, the second largest city in France, scenes of guerilla warfare were enacted by hundreds of robocops pitted against adolescents from the suburbs who came especially to fight the police. Estimates range from 1,300 to 1,600 youths of both sexes present at any one time who joined the tens of thousands of people protesting against the regressive reforms. It appears as if the government wishes to provoke this combat so as to advance military control over the population.

At times during these events, the police completely enclosed the central square in Lyon—the Place Bellecour—refusing to let people leave. The technique of sealing off areas has also been used in Paris and other cities in recent demonstrations. Sometimes people, unable to leave the area, are forced into underground subway stations, only to find riot police waiting for them when they arrive.

The night of June 24, 2010, Sarkozy made an unannounced midnight visit to the suburban city of St. Denis (north of Paris) with television cameras in tow for the best photo ops. A young (21 years old) black man happened to see him and immediately called out: “Va te faire enculer, connard! C’est chez moi ici!” (tr. “Go fuck yourself, asshole! This is where I live!”). Police guards immediately jumped on him. The young man’s nose was broken and he was arrested. A cameraman working for one of the pubic television channels was also struck when he tried to film the scene.

It is possible that Sarkozy was not displeased with this incident. The insult proffered him by a young black man with (it was later learned) an Arabic name can be presented as more evidence that young residents of the “ethnic” ghettoes are cultural (if not “racial”) barbarians having no respect for institutions and their representatives. Moreover, the young man openly claimed that his neighborhood is off-limits to the French president. So much the better, Sarkozy may have thought: it justifies his crusade to momentarily capture territory and create the illusion of pacifying the rabble.

And this is the whole point: Sarkozy and his government are re-conceptualizing the territory of France into occupied and unoccupied zones. Like other heads of state, he needs a permanent war against an ill-defined but stigmatized enemy in order to justify his authority. It is significant that military planners are now re-evaluating the role of the French army in the “battle of Algiers” in the late 1950s. Long considered a model for Israel in the Occupied Territories of Palestine, and for the United States in Iraq, the lessons of the murderous occupation of the Casbah in Algiers are now taken positively by strategists in France, for France.

What is really the problem in the French suburbs? Well, it was announced on December 14, 2010 that 43 per cent of young males and 37 per cent of young females in the suburban cities are unemployed. Here is where “ethic” youth (overwhelmingly born in France) with few future prospects are concentrated, and this is the population Sarkozy has designated as scapegoats.

In 2002, Sarkozy ended the policy of the previous (socialist) government of providing more police presence in the neighborhoods with the objectives of integrating the police into the local community and reducing tensions. Instead, Sarkozy has pulled police out of the suburban ghettos, preferring to make punitive military “incursions” into them. By now, it should be clear why.

Friday, December 17, 2010

Support the Dominant Paradigm

Subverted by the Power Elite
By RANDALL AMSTER

There's a bumper sticker still clinging to the back of my old camper, bearing a phrase you've probably heard before or perhaps even uttered: "Subvert the Dominant Paradigm." At the time I'd placed this on the tailgate for display, it made perfect sense to me. The Dominant Paradigm was the one manufactured by the warmongers, corporateers, securitizers, and mediamen. The rest of us were living in a Subordinate Paradigm, and the path to our salvation lay in tearing down the one imposing itself upon us. Since those halcyon bumper-sticker days, however, I've come to see that this logic is actually inverted, and that in fact WE are the Dominant Paradigm while those ostensibly in charge are the ones who continually attempt to subvert it.

This seems counterintuitive, of course. The world is wired by powerful interests who have propped themselves up by virtue of a nascent "corp d'etat" in which the policies and practices established at the upper echelons serve only to increase their wealth and privilege at the expense of the masses. The billionaires buoy themselves with bailouts, tax breaks, and subsidized boondoggles. They loot the treasury in the name of national security, capitalize on and/or foment dubious threats in order to justify their lockstep control, and interpose Big Brother mechanisms in all spheres of society so as to maintain this ineluctable combination of security and control. Ideologically, they utilize their wholly-owned media subsidiaries and increasingly-regimented school systems to produce a society of dampened consumers with little more on their minds than titillating toys, prescribed pills, and faster faux-food.

Nevertheless, it is increasingly apparent that the forces of subjugation are on the wrong side of history, and are by far a minority class on the planet. They've convinced us that we matter little while their every move is newsworthy. It's a sublime illusion, one that we've been paid a relatively handsome sum (compared to most of history's denizens) to swallow. Over time, it has even come to appear that this stratified state of affairs is the natural order of things, and thus have we generally accepted the rightful status of inherited wealth as a precondition of political power. Democracy has been rendered a quaint exercise in which we are asked to select which robber baron will loot our resources, which moral entrepreneur will pander to us, and which corporate elitist will decide our fates. What makes this openly fascistic enterprise unique in history is precisely its transparent quality and the ways in which it exists alongside popular conceptions of liberty and justice for all. We don't require leaks to expose this blatant corporatocracy; the empire brazenly stands stark naked before our gerrymandered gaze.

Against this state of affairs, people the world over launch rebellions and insurrections of every possible kind. Some openly resist with their bodies, others deploy the power of the pen, still others practice slow-downs and other forms of subtle sabotage, and many raise their voices in response to the myriad injustices delivered on our doorsteps every day. The number of people protesting unconscionable wars, corporate globalization pacts, and other shady deals almost always outstrips the number of those enacting the policies in question. At every turn it is obvious that we are many, and they are few – but the design of the world is a pyramid scheme, where the masses comprising the foundation often feel weak despite shouldering the weight of the freeloading "cloud minders" cavorting in the ether while their wastes trickle down on us.

More than half a century ago, the radical sociologist C. Wright Mills cogently described the workings of this burgeoning "power elite" in terms that in retrospect seem like a feat of gifted insight. Mills depicted a ruling class of military, corporate, and political figures who perpetuate their stations by rendering the citizenry effectively powerless and subject to ready manipulation. Part of the inspiration for his seminal work was a 1942 book called Behemoth that chronicled the Nazis' rise to power, which Mills later said provided him with the "tools to grasp and analyze the entire total structure and as a warning of what could happen in a modern capitalist democracy." The basic thesis of The Power Elite is that a highly unified and centralized elite class has monopolized power, rendered democracy a charade, and coopted the ideologies of both conservatism and liberalism to serve the preordained continuance of their rule. Mills' insights echoed a prior account of these trends by John F. Hylan, New York City mayor, in 1922:

"The real menace of our republic is this invisible government which like a giant octopus sprawls its slimy length over city, State and nation. Like the octopus of real life it operates under cover of a self-created screen. It seizes in its long and powerful tentacles our executive officers, our legislative bodies, our schools, our courts, our newspapers and every agency created for the public protection. It squirms in the jaws of darkness and thus is the better able to clutch the reins of government, secure enactment of the legislation favorable to corrupt business, violate the law with impunity, smother the press and reach into the courts.

"To depart from mere generalizations, let me say that at the head of this octopus are the Rockefeller-Standard Oil interests and a small group of powerful banking houses generally referred to as the international bankers. The little coterie of powerful international bankers virtually run the United States Government for their own selfish purposes. They practically control both parties, write political platforms, make catspaws of party leaders, use the leading men of private organizations and resort to every device to place in nomination for high public office only such candidates as will be amenable to the dictates of corrupt big business. They connive at centralization of government on the theory that a small group of hand-picked, privately controlled individuals in power can be more easily handled than a larger group among whom there will most likely be men sincerely interested in public welfare.

"These international bankers and Rockefeller-Standard Oil interests control the majority of newspapers and magazines in this country. They use the columns of these papers to club into submission or drive out of office public officials who refuse to do the bidding of the powerful corrupt cliques which compose the invisible government. It operates under cover of a self-created screen [and] seizes our executive officers, legislative bodies, schools, courts, newspapers and every agency created for the public protection."
Others have similarly pointed out the hijacked nature of governance and the lockstep union of corporate, political, and military interests – from William Jennings Bryan to Dwight David Eisenhower – and in all of these formulations it is understood that the ruling class is numerically very small, a "little coterie" as Hylan described it. The paradigm in which they operate is a mere fiction plied by a self-perpetuating cadre who claim the mantle of power in order to preempt the exercise of actual power by "the people." Their worldview is designed to insulate their interests from contestation by reinforcing at every turn a sense of resignation among the masses, who are provided with just enough "bread and circuses" to keep their place in the misguided but well-publicized notion that "you can't fight city hall." In this sense, the so-called Dominant Paradigm is actually a wholly contrived and artificially induced version of reality.

The real Dominant Paradigm – the one held by the overwhelming majority of people on the planet – is more decentralized and amorphous, yet is grounded in shared values that merit enunciation. These include: a belief in the virtues of community; a desire to be part of something greater than oneself; a reciprocal relationship with nature and life's essential resources; an aversion to open hostilities and devastating warfare; an interest in the wellbeing of others as a precondition of personal prosperity; an adherence to culturally-transcendent principles such as the Golden Rule; and a willingness to work hard in return for an equitable existence. Remarkably, this truly Dominant Paradigm continues to proliferate despite attempts to manipulate and eradicate it, and despite the fact that its practicability is highly disincentivized in modern life. It is perpetually being subverted by the "power elite" through the interlocking devices of politics, media, education, and economics – and yet it continually emerges from the heart of humanity like green grass poking through the cracks of a lifeless concrete jungle.

At this juncture, the true Dominant Paradigm desperately needs our open encouragement, thoughtful attention, and unconditional support. If humankind is to find its collective way through the storm in a world seemingly gone mad with avarice and despoliation, it will take nothing short of a total paradigm shift – back to the one from whence we came and, by some miracle of persistence in the face of persecution, in many respects have never really abandoned.