Too Much: Chronicles of Inequality [Oct. 8, 2012]

Too Much October 8, 2012
THIS WEEK   ||| Don’t forget to get the WORLD ULTRA WEALTH REPORT
Lots of groups in America these days are watching how individual members of Congress go about their business. Environmentalists and retailers keep congressional report cards. So do farmers and civil libertarians. Even poker players are keeping tabs on Congress.All these groups, of course, have their own specific concerns. They’re not looking at the “big picture,” the inequality that has become the central issue of our time. Voters have simply had no one rating lawmakers on what they’re doing — and failing to do — to narrow the gap between our rich and everyone else.That has just changed, with two new “big picture” report cards. The Campaign for America’s Future rating offers a middle class focus. The Institute for Policy Studies appraisal grades what lawmakers have done “to make sure that all Americans, not just a privileged few, share in the wealth we all together create.”Included in the IPS report card: an online interactive map that lets voters identify — and spread the word about — lawmakers who cater to our top 1 percent. That catering has to end. In this week’s Too Much, still more reasons why. About Too Much,
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GREED AT A GLANCE
The closest friends of America’s top 1 percent in Congress — the 59 lawmakers who rate “F” in the new Institute for Policy Studies inequality report card — love to claim that the less the rich pay in taxes, the more they’ll invest and grow the economy. The Congressional Research Service, the nonpartisan research arm of Congress, has just put that claim to the test. The CRS has crunched data for the years since 1945 and found no correlation between lower taxes on high incomes and economic growth. What do tax cuts for the rich generate? More inequality. In 1945, income over $200,000 faced a tax rate over 90 percent. The nation’s top 0.1 percent took home that year 4.2 percent of national income. In 2007, the top tax rate stood at 35 percent. The top 0.1 percent income share: 12.3 percent . . .Mitch MarrowMitch Marrow knows stress. He used to play pro football and then spent over a decade in the hedge fund industry, helping people of means. Now he’s helping their dogs — as the CEO of Manhattan’s choicest “full-service dog concierge.” The Spot Experience, his company, offers affluents the ultimate in doggie daycare, a “stress-free,” no-bark environment where trainers, handlers, and groomers obsess over the emotional well-being of the pooches in their charge. A month of doggie day care at Spot’s four Manhattan locales routinely runs over $1,000, not counting the gourmet treats that can set dog owners back $30 a 16-ounce bag. Spot patrons seldom blink at price-tags. Notes CEO Marrow: “The kind of clients who live in luxury residential buildings have disposable incomes, and they’re willing to pay a premium to feel at ease.”Europe’s biggest annual car extravaganza, the Paris Auto Show, has only a week more to go. The big news? Electric cars have gone ritz. With sales of mainstream electrics lagging worldwide, notes auto analyst Michael Vaughan, car makers are increasingly tying electric motoring’s future to the global deep pockets who’ve thrived through the worst of the global economic crisis. Mercedes-Benz is pitching its new $525,000 SLS AMG Coupe as the “most exclusive and dynamic way to drive an electric car.” The clean machine, complete with gull-wing doors, will debut in 2013. The vehicle’s anticipated top speed: 155 mph. Quote of the Week“Not mentioning inequality when talking about the plight of the middle class is like not mentioning poaching when discussing the future of elephants.”
David Callahan on last week’s first presidential debate, What About Inequality? Demos Policy Shop, October 4, 2012
PETULANT PLUTOCRAT OF THE WEEK
Lee CoopermanAmerica’s billionaires seem to be feeling a bit beleaguered these days. The most beleaguered of all? That may be Lee Cooperman, the Goldman Sachs partner turned hedge fund kingpin. Cooperman has been widely blasting President Obama for pitting “rich-and-entitled versus poor-and-dispossessed,” an attack that has one fellow billionaire calling the 69-year-old “the pope” of the anti-Obama “movement.” Last October, this week’s New Yorker points out, Cooperman proclaimed that the “anti-wealth” Obama might win this year’s election because of “the 40 or 50 percent of the country on the dole that support him.” Cooperman’s diatribe, notesanalyst Chrystia Freeland, helps fix Mitt Romney’s now infamous “47 percent” spiel before wealthy donors last May as a perspective “widely held by people of Romney’s class.” Like Too Much?
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PROGRESS AND PROMISE
The six heirs to the Wal-Mart fortune, Nobel Prize-winning economist Joseph Stiglitz observed last week, now hold about $70 billion in wealth, as much as the entire bottom 30 percent of America’s households. These heirs owe that fortune, in large part, to the total absence of collective bargaining within Wal-Mart’s U.S. empire. Is this non-union empire now cracking? A series of walkouts have rocked Wal-Mart since mid September, the first time in Wal-Mart history that workers at multiple outlets have struck at the same time. The strikers have included workersat the retail giant’s largest warehouse. Temperatures in this Illinois facility can reach 120. Says worker Mike Compton: “They want to know why we’re stopping to get a drink of water. All they talk about is CPH, cartons per hour.” Take Action
on InequalityStand with striking Wal-Mart workers. Check out theOURWalmart support site for details how.
INEQUALITY BY THE NUMBERS
world wealth chart Stat of the WeekThe typical American middle class family would have to work 82,411 years to earn enough to equal the average billionaire fortune on the latest Forbes magazine list of America’s 400 richest. 

 

 

IN FOCUS
Can We Get Tougher on Crime in the Suites?Federal regulators have actually been cracking down somewhat lately on financial industry fraud. But the power-suited executives responsible for that fraud are still paying no personal price.What should we, as a society, be doing about all those reckless financial industry executives who helped trigger the Great Recession? Should we be putting these execs behind bars? Or should we forgive and forget and let them collect hundreds of millions of dollars in new rewards?These questions now stand answered. The Equilar executive pay data firmreported last week that the five highest-ranking execs at 18 top U.S. financial firms together pocketed — in the worst 12 months after Wall Street’s 2008 meltdown — stock awards now worth nearly half a billion dollars.Meanwhile, not one top financial industry executive has yet seen the inside of a jail cell, despite massive instances of fraud at the firms they’ve been leading.How widespread has this fraud been? The Securities and Exchange Commission, the federal watchdog over Wall Street, has so far “collected $2.2 billion in penalties, disgorgement, and other monetary relief from cases related to the crisis,” the New York Times reports.And that total doesn’t count the $25 billion settlement with banks that the Justice Department announced last February — over fraudulent foreclosure practices — or any of the $536 million in refunds and penalties the new Consumer Financial Protection Bureau has won since July from three major credit card companies.Not one cent of all these millions and billions has come directly out of the pockets of senior financial industry executives. Millions and billions have instead been pouring millions into the pockets of these executives.

Consider Capital One Bank, the “don’t-leave-home-without-it” credit card giant. This past summer, Capital One agreed to pay $210 million in refunds and fines after federal regulators caught bank staff misleading customers on credit scores and falsely claiming that paid add-on services came at no charge.

Capital One’s top five execs could pay that $210 million, two times over, just from the pay they pocketed in the one year the new Equilar executive pay analysis has tracked. From mid 2008 to mid 2009, these five Capital One execs gobbled up stock and stock option awards then worth $19.9 million.

At the time of that award, Capital One shares were selling at bargain-basement prices. Since then, the entire stock market has rebounded, Capital One shares included. Equilar puts the current value of the $19.9 million in stock and options Cap One’s execs received four years ago at $114 million.

The five execsinsists a flack for Capital One, deserve every bit of that reward. They “delivered,” the flack explains, “solid results in 2009.”

Solid as smoke and mirrors. The five execs ran a company that bamboozled consumers. They parlayed a huge stock market rebound — fueled by taxpayer-financed bank bailouts — into immense personal windfalls.

But let’s not dwell on just Capital One. American Express last week agreed to pay $112.5 million in refunds and fines. The company, regulators found, has been charging illegal fees and reneging on discounts promised to consumers.

At the stock market low point in 2009, notes Equilar, American Express generously stuffed the pockets of its top five execs with options then worth a measly $7.6 million. The current value of these options: $91.2 million.

All told, between July 1, 2008 and June 30, 2009, the 80 executives at the 18 U.S. financial firms that Equilar examined grabbed stock and options now worth a stunning $457 million.

Some of these execs, we now know, ran companies guilty of massive frauds. And why should we expect, asks consumer advocate Dennis Kelleher of Better Markets, anything but widespread fraud out of Wall Street’s finest?

“If you are an executive,” he notes, “you know that the chances of getting caught are infinitely small, and the chances of getting caught and prosecuted are even smaller.”

On Wall Street and elsewhere in Corporate America, crime clearly pays. Back in the Great Depression, curiously enough, we took a different tack toward Wall Street crime. The nastiest of America’s super-rich wheeler-dealers went to jail.

In 1938, for instance, prosecutors sent New York Stock Exchange president Richard Whitney upriver to Sing Sing. Six thousand people gathered at New York’s Grand Central Station to watch armed guards shuffle Whitney onto the prison-bound train.

We don’t, of course, do prison trains anymore. But planes would do.

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New Wisdom
on WealthCatherine Rampell, The Math on the Romney-Ryan Tax PlanEconomix, October 1, 2012. A clear simple debunking of the irregular arithmetic behind the 1 percent-friendly Romney tax proposals.Andrew Fieldhouse, Even more mathematically impossible tax promises,Working Economics, October 4, 2012. A clear detailed debunking of the irregular arithmetic behind the 1 percent-friendly Romney tax proposals.Nicholas Kristof, Why Let the Rich Hoard All the Toys? New York Times, October 4, 2012. inequality should be getting far more attention in this year’s presidential campaign. Here’s why.

Jansing & Co., Poor Billionaires? America’s super-rich play victims,NBC News, October 5, 2012. Thomson Reuters editor Chrystia Freeland talks about her new article that highlights America’s most irritable billionaires.

 

NEW AND NOTABLE
Lawrence Mishel, Josh Bivens, ELise Gould, and Heidi ShierhoLz, The State of Working America, 12th edition. Economic Policy Institute, Washington, D.C.State of Working AmericaHow long has the Economic Policy Institute been publishing the State of Working America series? This long: The first biannual edition came out before anyone dreamed that someday researchers might be able to share stats and insights in something called cyberspace. Now, a quarter-century later, a new edition has just appeared. This new State of Working America will be available shortly in book form, from Cornell University Press, but all the book’s data and discussions also now appear online, in easy-to-navigate pages. The basic theme? That hasn’t changed since the first State of Working America in 1988: Rising inequality, notes EPI, is driving intense wage stagnation, and specific 1 percent-friendly public policy choices are driving that inequality. Web GemKoch Cash/ This new sitefrom the International Forum on Globalization zeroes in on the billionaire brothers who have become “the single biggest source of funding to fight collective bargaining, clean air, voters’ rights, and strong social safety nets.”
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No More Israel in 10 Years

By Stephen Lendman

On September 17, the New York Post quoted Henry Kissinger saying:

“In 10 years, there will be no more Israel. I repeat: In 10 years, there will be no more Israel.”

He didn’t mean Israel will self-destruct or collapse. His view mirrors the combined assessment of 16 US intelligence agencies. Months earlier, its report headlined “Preparing For A Post Israel Middle East.” It wasn’t released publicly so no link.  It concluded that Washington’s national interest is at odds with Israel. The so-called special relationship is counterproductive. What benefits Israel geopolitically often harms America.

It’s time to stop letting the tail wag the dog. America loses more than it gains. Serious reassessment is long overdue.

In their book titled “The Israel Lobby and US Foreign Policy,” John Mearsheimer and Stephen Walt argue that Israel is “increasingly a strategic liability….It is time for the United States to treat Israel not as a special case but as a normal state, and to deal with it much as it deals with any other country.”

Doing so “means no longer pretending that Israel and America’s interests are identical, or acting as if Israel deserves steadfast US support no matter what it does.”

James Petras said “(t)he US-Israeli relationship is the first in modern history in which the imperial country covers up a deliberate major military assault by a supposed ally.”

He referred to the 1967 USS Liberty attack. Israel bombed and strafed it. Dozens of US seamen were killed. Around 170 were wounded. The vessel was heavily damaged. Israel got away with murder. It wasn’t the first or last time.

It’s time to cut ties and move on. In May 2008, former US official Richard Holbrooke headlined a Washington Post op-ed “Washington’s Battle Over Israel’s Birth,” saying:

In early 1948, Washington witnessed an “epic struggle.” Behind the scenes, policy makers wrangled over how to respond to Israel’s May 14 declaration of independence. Influential Truman officials shared opposing views. Lesser ones favored recognition.

Notable ones against included Defense Secretary James Forrestal, diplomat George Kennan, Defense Secretary Robert Lovett, presidential advisor John J. McCloy, defense strategist Paul Nitze, Secretary of State Dean Acheson, and General George Marshall, whom Truman called “the greatest living American.”

On May 12, Truman held an Oval Office meeting. Supposedly it was to resolve things. Marshall, Lovett, and others made the case for delaying recognition. By “delay,” they meant “deny.”

Truman asked Clark Clifford to be present. At the time, he was a young aide. He argued for recognition. Marshall was furious. When Clifford finished, he said:

“I don’t even know why (he’s) here. He is a domestic adviser, and this is a foreign policy matter. The only reason (he’s) here is that he is pressing a political consideration.”

Truman was up for reelection in November. Polls showed Republican Thomas Dewey ahead. Winning the Jewish vote was important.

After the meeting, said Holbrooke, Marshall wrote “an unusual top-secret memorandum….for the historical files.” He wanted his view on the record, saying:

“I said bluntly that if the President were to follow Mr. Clifford’s advice and if in the elections I were to vote, I would vote against the President.”

His comment was stunning. Marshall was a consummate diplomat. He was Truman’s Secretary of State and Defense Secretary. Forrestal reflected his view and other recognition opponents, saying:

At issue is oil, numbers and history. “There are thirty million Arabs on one side and about 600,000 Jews on the other.” He told Clifford: “Why don’t you face up to the realities?”

It didn’t matter. It was a done deal. Truman decided earlier. On March 25, 1948, he met secretly with Chaim Weizmann (Israel’s first president). He pledged support for the future Jewish state. Minutes after midnight on May 15, 1948, America was the first country to extend recognition.

Holbrooke said many believe Marshall, Forrestal, Lovett, and others were right. “Israel, they argue(d), has been nothing but trouble for the United States.”

Holbrooke tried having it both ways. He said it didn’t matter whether Washington extended recognition then or not. With or without it, Israel was created right or wrong.

Failure to offer support might have jeopardized its survival. “Truman’s decision, although opposed by almost the entire foreign policy establishment, was the right one….despite complicated consequences that continue to this day….”

Rethink time is long overdue. Perhaps it’s happening behind the scenes. In April 2010, The New York Times headlined “Obama Speech Signals a US Shift on Middle East,” saying:

He said resolving the longstanding Israeli/Palestinian conflict is a “vital national security interest of the United States.” At issue was balancing support for Israel with other regional interests.

At the same time, General David Petraeus told Congress that lack of progress created a hostile environment “within which we operate.”

At the same time, administration officials then and now insist US support for Israel is unwavering. Close cooperation is policy. Perhaps what goes on secretly is less rock solid than earlier.

At the time, AIPAC publicized letters to Hillary Clinton signed by 76 senators and 333 House members. They urged the administration to defuse tensions.

In addition, World Jewish Congress president Ronald Lauder published an open letter to Obama asking:

“Why does the thrust of this administration’s Middle East rhetoric seem to blame Israel for the lack of movement on peace talks?”

Netanyahu expressed support. He omitted saying Israel bears full responsibility for longstanding conflict conditions. For over 40 years, so-called peace talks went nowhere.

Israel obstructed them. It still blocks resolution. It demands. It doesn’t negotiate. It expects unconditional acquiescence. Palestinians never had a willing peace partner and don’t now.

Maybe Kissinger is right. Privately and secretly perhaps the dog is beginning to bark. Anti-Israeli sentiment gained adherents for years. Many Jews are fed up and say so. US and Israeli ones are vocal. Expect new supporters to join their ranks.

Growing numbers of ordinary people and analysts know Israel menaces regional peace. Perhaps policy makers admit privately that it’s more liability than ally.

Change comes incrementally and imperceptibly. Breaking or substantially pulling back from longstanding ties won’t come easily or quickly.

Israel is notorious for dirty tricks and unprincipled tactics. It’ll do anything to get its way. It may take a future US leader with chutzpah enough to challenge what none so far dared do. One day, expect it. When, who knows.

Maybe Israel will help out by shooting itself in the foot once too often. Occupation harshness has shelf life limitations. Pressuring Washington for favors harming US interests can’t go on forever. Push has an appointment with shove. We’ll know when at the moment of truth.

On September 24, Al Haq published a Palestinian Human Rights Organizations Council (PHROC) joint statement. It’s titled “Oral Statement of Culture of Impunity in Israel.”

It covers longstanding Israeli crimes against humanity. It highlights what’s too intolerable to let go on. Whatever strains exist between Washington and Tel Aviv, Palestinian grievances are longstanding, grave, and destructive of an entire people.

Al Haq represented 10 other PHROC organizations. It presented their case and its own at the Human Rights Council’s 21st session. It argued that conditions in Palestine and other occupied Arab territories are intolerable.

It said impunity granted Israel lets international crimes go unpunished. Palestinian victims get no “semblance of justice.” Facts on the ground demand corrective measures. Delay no longer washes. Action is needed now.

The joint submission was titled “Escalation in Forcible Transfer and Demolitions in Area C.” It comprises over 60% of the West Bank. Israel exerts total control.

It calls Palestinian land sovereign Israeli territory. Land theft is policy. Israel acts extrajudicially. It does whatever it wants. It gets away with it because world leaders turn a blind eye. Instead of denouncing what’s lawless, support if extended.

Its policies are extreme enough to make some despots blush. How do you characterize unconscionable oppression. Nonviolent Palestinians are terrorized for not being Jewish.

Their land, homes and other property are stolen and/or destroyed. They’re denied their own resources. Free movement, expression, and assembly are prohibited. Building on privately owned land is criminalized.

Ethnic cleansing is policy. So is institutionalized racism. Fundamental international laws are spurned. It’s long past time to hold Israel accountable.

Alarm was expressed about its culture of impunity. Virtually all Palestinian rights are denied. They face “violent intimidation, severe restrictions,” and denial of their self-determination right. The International Court of Justice (ICJ) called granting it “one of the essential principles of contemporary international law.”

The UN is responsible for protecting and promoting universal human rights. It’s obligated to act against international law violations. From inception, it failed to do so repeatedly.

Al Haq and other PHROC organizations want the Human Rights Council to address systematic Israeli lawlessness. Action is needed now. Enforcing accountability is essential.

No one is above the law – no nation, organization or individual. Member States are obligated to act. It’s high time they fulfilled responsibilities they’re sworn to uphold. Delay, whitewashing crimes, and excuse making no longer wash.

Visit his blog site at sjlendman.blogspot.com and listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.  http://www.progressiveradionetwork.com/the-progressive-news-hour   

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From the annals of WSWS.ORG: This Week In History

8 October 2012
This Week in History provides brief synopses of important historical events whose anniversaries fall this week.

25 years ago: US sinks Iranian speedboats in the Persian Gulf

On October 8, 1987, helicopter gunships from the US fleet in the Persian Gulf sank three small Iranian military boats, killing at least four sailors. Another six seamen were pulled from the international waters about 15 miles off the coast of Farsi Island. A fourth Iranian craft reportedly escaped the assault. The Pentagon claimed that the attack was in self-defense, but offered no evidence that any shots were fired by any of the vessels. There were no US casualties or damage of any kind to any of the three AH-6 “Little Bird” attack helicopters.
This assault took place less that three weeks after the murderous attack on the Iranian landing ship Iran Ajr, which resulted in the killing of 5 crewmen, the capture of the remaining 26 and the subsequent sinking of the ship. The buildup of ships in the Persian Gulf by the US Navy and its NATO allies, Britain, Italy and West Germany, gave the lie to the claims of neutrality in the Iran-Iraq war. The threat of direct war against Iran loomed ever closer with each provocation by the US.

The attack was the fourth incident of US forces firing on Iranian ships in the Gulf since July, when the reflagging of Kuwaiti oil tankers began. Reagan defied members of Congress, including Democratic senator Paul Simon, who filed a lawsuit demanding that the administration adhere to the 1973 War Powers Act, which required that the president submit a resolution to a vote in Congress before conducting any military operations “where imminent involvement in hostilities is clearly indicated.”

75 years ago: Britain, France appease Mussolini on Spain

This week in 1937 saw the government of the United Kingdom and France appeal to the Italian fascist government of Benito Mussolini to reduce Italy’s intervention in the Spanish Civil War, where some 70,000 Italian “volunteers” at the service of Spanish military strongman Francisco Franco were rapidly gaining ground on the Republican government.

On October 9, in a joint communiqué, the two “democratic powers” invited Mussolini to join in tripartite discussions on Spain. The next day, Mussolini flatly rejected the invitation, but issued a counterproposal, calling for the reassembling of the “Non-Intervention Committee,” which included—in addition to the UK, France, and Italy—Nazi Germany, the Soviet Union, and fascist-ruled Portugal. On October 14, British prime minister Neville Chamberlain accepted Mussolini’s offer, “[giving] way to Italy on almost every point of procedure,” according to the New York Times.

Fearful of being surrounded by three hostile powers—Germany, Italy, and Spain—the French government favored a Republican victory, and wished for British backing in a move to provide arms to the Republic. Yet France had already shut her own border with Spain, blocking the movement of goods and volunteers to the Spanish government. When French foreign minister Delbos threatened to open the border, Germany warned that it would increase its support of Franco, and Italy indicated that it would retaliate by expanding its intervention. France quickly backtracked from the threat.

While the diplomatic maneuvering continued, Italian troops and Spanish fascist forces were in the process of eliminating the last vestiges of Republican-controlled land on the Bay of Biscay, Spain’s northern coastline, and to the south of Madrid were massing forces for an assault on Spain’s capital and largest city. On October 11, Madrid was subjected to its worst bombing of the war, with American writer Ernest Hemingway counting the boom of at least 600 artillery shells from his hotel in the city center. [Above, left: Neville Chamberlain]

100 years ago: First Balkan War begins

Bulgarian artillery

On October 8, 1912, the Kingdom of Montenegro declared war on the Ottoman Empire, and launched attacks on the Ottoman forts at Detchitch, located opposite the major Montenegrin city Podgorica, and Novi Pazar, Ottoman territory separating Serbia and Montenegro. Montenegrin forces seized control of the Detchitch fort within two days. The conflict rapidly broadened, with the Ottomans declaring war on Serbia and Bulgaria on October 17. On October 18, Serbia, Bulgaria and Greece declared war on the Ottoman Empire, and major military confrontations began in the following days.

The First Balkan War, which lasted until May 1913, marked a major escalation of hostilities on the European continent in the lead-up to World War One and resulted in an estimated 100,000 Ottoman casualties alone.

On October 1, the states that composed the Balkan League—Serbia, Bulgaria, Montenegro and Greece—had issued an ultimatum to the Ottoman Empire demanding that Macedonia, which was under Ottoman control, be granted autonomy. The resistance of the Turks to the Balkan League’s aspirations for a redivision of geopolitical power in the Balkan region prompted the move to war.

Serbia and Bulgaria, with the encouragement of Russia, had signed a treaty in March, which provided for the division of Macedonia into a Serbian zone, a Bulgarian zone, and a neutral zone to be arbitrated by Russia, in the event of war. The move initiated the loose political alliance, forged through a series of bilateral treaties, that came to be known as the Balkan League.

The Ottoman Empire had been weakened by growing revolt amongst the Albanians, the Italo-Turkish war of 1911-1912, in which Italy annexed Ottoman territory in modern-day Libya, and internal political instability bound up with the Young Turk revolution of 1908. Austro-Hungarian fears over Balkan nationalism, Russia’s increasing aggressiveness, and Germany’s growing influence heightened regional instability.

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Reimagining Austerity

ELLIOT SPERBER

…[b]ecause the overall costs they exact are far too high, those industries found to be not only unnecessary, but hostile to human and environmental health as well, should be phased out of existence entirely.”

In a nation so thoroughly misinformed and kept ignorant by a constant diet of lies and gross omissions of context and history, Americans often arrive at the right conclusions for the wrong reasons, thereby opening the road to false solutions or worse. (Click to enlarge)—Eds

Though their conclusions are specious, the proponents of economic austerity programs are in one crucial respect entirely correct: the present economic system is dysfunctional and, as such, requires a radical transfiguration. Indeed, as it ceaselessly spews toxins into the skies and seas, it is only becoming more evident that this economy is, among other things, a great source of danger to us all. Along with the growing dead zones of the oceans, and the spreading war zones accompanying the resource depletion intrinsic to our political-economy, we are also daily savaged by the far more mundane, though just as endemic, pathologies of cancer and obesity epidemics, widespread malnutrition, and countless car wrecks and occupational hazards, along with the many other institutionally-created harms that our economy reproduces – its daily tons of ground beef, bacon, paper coffee cups, and other innumerable, though far less visible, toxicities.

And though proponents of austerity measures contend otherwise, it cannot be reasonably maintained that the austerity measures being imposed on national economies throughout the world do anything at all to ameliorate these actual harms we collectively face. On the contrary, insofar as they increase economic production, waste, pollution, and widespread precarity, these austerity programs only exacerbate our actual – as opposed to our merely apparent – problems.

To be sure, because they require perpetual economic growth, it must be conceded that what their boosters propose are not in any meaningful sense even austerity programs at all. For rather than sacrificing anything, the wealthy classes are only engorging themselves further on opulent luxuries. And the laboring people, meanwhile, daily bombarded by advertisements and disinformation, are encouraged to spend ever more on poisonous, disposable garbage.

Among the symptoms of general environmental degradation attending this economic pathology, even our most vital resource – fresh water – is throughout the planet being destroyed. Hardly an anomaly, this as an entirely foreseeable consequence of this economy’s normal functioning. And as aquifers the world over are being pumped dry, and tons of pesticides and other pollutants are daily discharged into the hydrosphere as a result of market forces, and climatic changes wreak havoc on snow packs, among other sources of water, the situation is only worsening. As the United Nations estimates, by 2025 nearly 2 billion people “will be living in countries or regions with absolute water scarcity.” Instead of confronting this crisis, which is already unfolding in much of the world, mainstream political-economic thought engages only in exercises in denial, dissimulation, and speculation in the burgeoning water market.

But these quantities of pollutants that are poisoning our water – and all of our bodies besides – are but one effect of a general design whose index of value is markedly divorced from the actual well-being of people – one that, for example, demands that most people receive inadequate levels of necessities (like sleep, and water, and food) in order to satisfy the indolence and utter inausterity of a relative few. In spite of all this, as mentioned above, the proponents of austerity do raise an important point. Standing on the precipice of ecological holocaust, we really ought to embark upon an austerity program. For it to alleviate, and not exacerbate, the serious harms we all confront, however, it must be an austerity of a radically different type than those under our current hegemon’s consideration.

Rather than privatizing such things as public schools, water supply systems, and other publicly owned enterprises – which are only ever pretexts for the aggrandizement of the wealthy – a critical austerity would instead halt altogether the far from austere economic practices proven to be polluting and otherwise destroying the planet. Indeed, because the overall costs they exact are far too high, those industries found to be not only unnecessary, but hostile to human and environmental health as well, should be phased out of existence entirely.

So, for example, since the fast food industry, along with the disposable paper and plastic container industries, produce harmful products, they should be shuttered. Many, of course, may find such a view of austerity unsavory. However, just as at one time in history people found it necessary to make sacrifices by slaughtering animals, today it is necessary to make sacrifices by not slaughtering animals. Beyond its cruelty, and its attendant environmental harms, the intensive demands on grain and water supplies required to feed these animals imposes a tremendous strain on our ability to satisfy our collective food requirements.

Moreover, if billions of people throughout history, and today as well, have found it possible to forsake the slaughter and consumption of cows and pigs, among other animals, because of the proscriptions of their faiths, our knowledge of the concrete harms attending these practices ought to lead us, though for different reasons, to comparable interdictions.

Another significant source of harms is the energy industry. Any meaningful notion of austerity should not only curtail the tremendously wasteful overuse of energy, and the damage it causes, but would impose a moratorium on the destructive extraction of resources as well. Of course, the elimination of harmful industries, such as those named above, whose purpose is the generation of profit rather than any salutary use, will no doubt contribute a great deal toward the reduction of the harms accompanying the present modes of energy production.

Perhaps the most harmful industry of all, though, is the military industry. And while the transformation of the military industry will no doubt be met with a great degree of resistance, it must nevertheless be accomplished in order to realize an austerity program worthy of the name. Rather than viewing the military as an obstacle to austerity and a reasonable economy, however, we ought to recognize that the military has the potential to contribute greatly to the implementation of just such an austerity program.

Beating its spears into pruning hooks, so to speak, the military could be employed in building public transportation systems to replace the automobile industry, salutary, publicly-controlled energy systems, and communications systems, as well as retrofitting sewage and waste treatment facilities, and other infrastructural projects like the construction of schools and community health clinics. Furthermore, the military could be directed to clean up the monumental mountains of toxic garbage littering the world and swirling about throughout the seas.

With the elimination of all of these industries, and the jobs attached to them, people will no doubt inquire as to how they will be expected to pay for food, and rent, among other things. The simplest solution to this problem is by the adoption of a basic income law. Because the entire purpose of such an austerity program is to mitigate harms, it would be absurd to propose that people incur harms to their health in effectuating such austerity. As such, a basic income must be available to all people – irrespective of whether or not they work – to pay for rent, food, transportation, communications, and other things necessary for optimal health – at least, that is, until a more democratic economic system is devised.

Concededly, many will be less than thrilled by the prospect of having restrictions imposed on their ability to consume all of the bacon that they want, and to drive around in their cars to their hearts’ content, jet about the planet at will, drill oil wells wherever they like, and extract rent from the tenants of the world. But this is, after all, an austerity plan that’s under discussion.

For those who will argue that such an economic program would require an impossibly difficult political fight, we would do well to pay attention to the words of the ancient Chinese military strategist, Sun Tzu, who informs us in his Art of War that, while it is good to win a battle by fighting, it is best is to win without fighting at all. To this end, and with all due respect to Walter Benjamin’s insight concerning the engine of history, we don’t need to pull the emergency brake on this runaway train of an economy so much as we need to endeavor a more modest, practicable thing – to remove our collective foot from the gas pedal – to rest it, before its engines trash the rest of the planet, and we all choke to death in the gas chamber we’ve made of the world. And if, as countless thinkers and jurists have insisted since the time of Cicero, the health of the people really is the supreme law, then the law must recognize not only the legitimacy, but the physiological necessity, of such a type of critical austerity as well.

Elliot Sperber is a writer, attorney, and contributor to hygiecracy.blogspot.com. He lives in New York City, and can be reached at elliot.sperber@gmail.com

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Arctic expert predicts final collapse of sea ice within four years

By John Vidal, The Guardian

One of the world’s leading ice experts has predicted the final collapse of Arctic sea ice in summer months within four years.

In what he calls a “global disaster” now unfolding in northern latitudes as the sea area that freezes and melts each year shrinks to its lowest extent ever recorded, Prof Peter Wadhams of Cambridge University calls for “urgent” consideration of new ideas to reduce global temperatures.

In an email to the Guardian he says: “Climate change is no longer something we can aim to do something about in a few decades’ time, and that we must not only urgently reduce CO2 emissions but must urgently examine other ways of slowing global warming, such as the various geo-engineering ideas that have been put forward.”

These include reflecting the sun’s rays back into space, making clouds whiter and seeding the ocean with minerals to absorb more CO2.

Wadhams has spent many years collecting ice thickness data from submarines passing below the arctic ocean. He predicted the imminent break-up of sea ice in summer months in 2007, when the previous lowest extent of 4.17 million square kilometres was set. This year, it has unexpectedly plunged a further 500,000 sq km to less than 3.5m sq km. “I have been predicting [the collapse of sea ice in summer months] for many years. The main cause is simply global warming: as the climate has warmed there has been less ice growth during the winter and more ice melt during the summer.

“At first this didn’t [get] noticed; the summer ice limits slowly shrank back, at a rate which suggested that the ice would last another 50 years or so. But in the end the summer melt overtook the winter growth such that the entire ice sheet melts or breaks up during the summer months.

“This collapse, I predicted would occur in 2015-16 at which time the summer Arctic (August to September) would become ice-free. The final collapse towards that state is now happening and will probably be complete by those dates”.

Wadhams says the implications are “terrible”. “The positives are increased possibility of Arctic transport, increased access to Arctic offshore oil and gas resources. The main negative is an acceleration of global warming.”

“As the sea ice retreats in summer the ocean warms up (to 7C in 2011) and this warms the seabed too. The continental shelves of the Arctic are composed of offshore permafrost, frozen sediment left over from the last ice age. As the water warms the permafrost melts and releases huge quantities of trapped methane, a very powerful greenhouse gas so this will give a big boost to global warming.”

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