Do Obama and Democrats Really Want To Raise the Minimum Wage?

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A Black Agenda Radio commentary by BAR managing editor Bruce A. Dixon

$10.10 an hour isn’t much of a raise, but it’s better than a sharp stick in the eye. The truth is that rhetoric about “passing a jobs bill”, “universal pre-K” and raising the minimum wage are things Democrats dust off to reinforce their brand, only when when Republicans are in a position to block them. That makes them branding exercises, not political deeds they intend to accomplish.

“…when President Obama was candidate Obama he campaigned on a promise to put legislation through Congress to raise the minimum wage…”

President Obama and national Democratic party spokespeople now agree that the minimum wage ought to be raised, and the mighty executive pen of the White House will soon force federal contractors to pay workers at least $10.10 an hour. Though this only applies to federal contractors, and can be rolled back if Republicans win the White House in 2016 it IS better than a sharp stick in the eye. It’s also something the president could have done five years ago, during his first hours in office.

Back in 2007 and 2008, when President Obama was candidate Obama he campaigned on a promise to put legislation through Congress to raise the minimum wage, and to reform labor law so as to make it easier for workers to organize unions and fight for their rights on the job. Both those cynical promises were immediately forgotten when Barack Obama assumed the presidency, and during the two years his party held a thumping majority in the House with a narrower one in the Senate. The administration has never mentioned easing the restrictions on union organizing again, but once in a while, when their poll numbers get low enough, and as long as Republicans are safely in control of the House of Representatives, they dust off their rhetoric on the minimum wage. This is one of those times.

To tell the truth, $10.10 an hour isn’t much, it’s such a low floor that it probably can pass the House if leaders ever allow a floor vote. But it’s far from a wage that will lift people out of poverty.

The elite bipartisan consensus – that’s the president and his spokespeople and Republicans too, agree that the “solution” is not so much raising the wage for what people already DO as “training” which will make them fit for better jobs. But that’s a joke as well. The US economy isn’t producing “better jobs.” Starbucks is full of baristas with M.A. degrees, and most college teachers are now “adjuncts” which means their advanced degrees enable them to work for poverty wages and few or no benefits. PhD incomes have fallen off a cliff the last ten years as colleges and universities re-organize themselves more to resemble the corporations who rule our society.

“…Democrats only take up the cause of the minimum wage when Republicans are in office, to reinforce their fake brand…”

Early in his presidency, Barack Obama proposed recalculating social security benefits to lower them, and late last year he signed off on the reduction of unemployment benefits he now wants immoral Republicans to take all the blame for.

It’s not hard to see that Democrats only take up the cause of the minimum wage when Republicans are in office, to reinforce their fake brand as champions of the oppressed. When they’re in power, and raising that wage is a sure thing, their attention is somewhere else. But once Republicans get the House or the Senate, they talk about “passing a jobs bill”, about “universal pre-K” and about raising the minimum wage, more to embarrass Republicans than with a view to actually accomplishing any of these things.

They are all branding slogans, blatant and shallow hypocrisy, but so far they have worked to reinforce the Democrats’ brand as the party of the oppressed. Find us on the web at www.blackagendareport.com [4].

Bruce A. Dixon is managing editor at Black Agenda Report and serves on the state committee of the Georgia Green Party. He lives and works in Marietta GA and can be contacted via this site’s contact page [5], or at bruce.dixon(at)blackagendareport.com.

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New York’s Zionist Mayor

Is it all a mirage once again? Can anyone in American politics be trusted?

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by Stephen Lendman

On January 1, Michael Bloomberg was out. Bill de Blasio replaced him. Zionism remains empowered.  Imagine letting Israel influence NYC policy. Imagine giving AIPAC say.  Imagine Obama doing the same thing. Stanley Fischer is a Zionist zealot. Obama nominated him for Fed vice chairman. 

 

He’s rubber-stamp approval away from assuming his post. He’ll let Israel influence US monetary policy.  On January 24, de Blasio delivered an unannounced address. He spoke in midtown Manhattan. He did so at a closed door AIPAC event.  Capital New York (CNY) calls itself “a publication for and about the people and institutions that shape New York, delivering fast, original, essential analysis and reporting on city and state politics and the media industry.”

CNY reporter Azi Paybarah tried covering de Blasio’s address. Security staff blocked him. Candidate de Blasio pledged more openness, transparency, and inclusiveness than his predecessor.

Mayor de Blasio wants his unswerving fealty to Israel kept secret. Capital New York got an audio recording of some of what he said. It’s not what he wants his constituents to hear.  “Part of my job description is to be a defender of Israel,” he said.

“There is a philosophical grounding to my belief in Israel and it is my belief, it is our obligation, to defend Israel, but it is also something that is elemental to being an American because there is no greater ally on earth, and that’s something we can say proudly.”

“There is no deeper connection across boundaries than this connection we share. We take inspiration from Israel for how it has stared down terrorism and kept moving forward.”

If he delivers on his promise to ban horse-drawn carriages it will be a miracle.

It’s done it through lawless aggression. It’s been through cold-blooded murder. Land theft and ethnic cleaning reflect it.  So do decades of lawless occupation harshness. Palestinian rights don’t matter. They’re systematically denied.

State terrorism is official Israeli policy. So is slow-motion genocide. De Blasio didn’t explain. He visited Israel three times. He expressed solidarity with its people. They’re “on the front line of fighting so many challenges,” he said.  He’s mindless of Palestinian rights. Only Jews matter. Racism resides in Gracie Mansion. Palestinians aren’t welcome. De Blasio is “inspir(ed)” by Israeli ruthlessness. Maybe he intends treating New Yorkers the same way.

Word got out about his AIPAC address. Reporters challenged him. He offered a weak-kneed mea culpa. He said he’ll urge his aides to be more open about his whereabouts.  He said AIPAC wanted journalists excluded from its event. Public officials are supposed to let constituents they serve know what they’re doing.  Gawker.com headlined “Reporter Kicked Out of Bill de Blasio’s Secret Pro-Israel Speech,” saying:

He “wants you to know he shovels his own snow-encrusted sidewalk…” He’s polar opposite when it comes to “wooing the powerful pro-Israeli lobbying group AIPAC…”

Candidate de Blasio denounced BDS activism. He called it “inflammatory, dangerous and utterly out of step with the values of New Yorkers.”  “An economic boycott represents a direct threat to the State of Israel. That’s something we need to oppose in all its forms.”

“No one seriously interested in bringing peace, security and tolerance to the Middle East should be taken in by this” campaign.  Public de Blasio speeches feature demagogic boilerplate. He stresses income inequality, expanding sick-pay leave, taxing the rich, and other social issues.  He’s held office less than one month. Early indications aren’t encouraging. Expect business as usual to continue. He was chosen for that reason. He won’t disappoint.  New Yorkers never had a true populist mayor. They don’t have one now. De Blasio reflects same old, same old.  He’s old wine in new bottles. He differs from Bloomberg in style alone. He represents the same monied interests.

His AIPAC speech omitted social issues. He focused solely on pledging allegiance to Israel.  Two attendees said he never once used the word “progressive.” He features it in public addresses.

He concluded saying: “City Hall will always be open to AIPAC. When you need me to stand by you in Washington or anywhere, I will answer the call, and I’ll answer it happily cause that’s my job.”

His job is serving NYC residents. All of them equitably and fairly. Not Israel.  Not monied interests at the expense of public ones. Not other powerful, privileged ones exclusively.  It’s not hard imagining what’s coming. Expect constituent hopes to be dashed. Early indications suggest it.  Bruce Ratner is Center for Constitutional Rights President Emeritus Michael Ratner’s brother.

Their ideologies are polar opposite. Bruce is a prominent real estate developer. He’s a corporate predator. He’s the NBA Brooklyn Nets’ minority owner. His Brooklyn mega-development project ran roughshod over local community needs. Longtime resident/noted architect Frank Gehry called it “a nightmare for Brooklyn, one that, if built, would cause irreparable damage to the quality of our lives.”

De Blasio’s anti-developer/landlord rhetoric rings hollow. He endorsed Ratner’s project. He did so wholeheartedly.  He’s progressive in name only. He’s a longtime Democrat party hack. He has close ties to Bill and Hillary Clinton.  He was a Clinton administration Housing and Urban Development official. He managed Hillary Clinton’s 2000 Senate campaign.  Bill Clinton administered his swearing-in ceremony. Doing do affixed the Clinton name to his mayoralty.

Both Clintons are unindicted war criminals. They deplore populism. They’re imperial tools. They’re beholden to monied interests. They support unrestrained corporate empowerment. They’re unaccountable. They’ve got blood on their hands. They represent America’s dark side.

Voters never learn. They’re suckers for political deception. No matter how many times before they’ve been fooled, they’re easy marks for more of the same.  They learn the hard way. They discover reality too late to matter. No one holds high office in America without careful advance vetting.

Monied interests run things. They choose winners and losers. Voters have no say. America mocks democracy. None whatever exists.  Government of, by and for wealth, power and privilege defines things. De Blasio’s mayoralty represents the worst of what most voters deplore.

Nation magazine long ago betrayed its readers. It disingenuously calls itself “the flagship of the left.” It never was. It’s not today.  Last August, it endorsed de Blasio, saying:

“His candidacy is an opportunity for New Yorkers to reimagine their city in boldly progressive ways.” He represents “a once-in-a-generation opportunity (for them) to rewrite the narrative of their city.”

One observer compared him to candidate Obama. Promises made were broken. De Blasio sounds like the same broken record. He appointed Anthony Shorris deputy mayor. He’s been active in New York politics for nearly three decades.  He was Ed Koch’s budget director and finance commissioner. He was Bloomberg’s deputy schools chancellor. He was Port Authority of New York and New Jersey executive director.

His current appointment entails cutting New York’s budget deficit. He’ll do it on the backs of city workers.  Expect neoliberal harshness continued. De Blasio is no populist. His rhetoric pays lip service to progressivism and social justice. His record supports wealth and power interests.  Wall Street crooks contributed generously to his campaign. They buy politicians like toothpaste.  They don’t bankroll populists. They back business as usual candidates. They know what’s forthcoming in return. De Blasio’s inaugural address suggested it, saying:

“We do not ask more of the wealthy to punish success. We do it to create more success stories.”  He’s no harbinger of America’s shift left. None whatever exists. Neoliberal harshness remains policy.  Government of, by, and for everyone equitably remains a distant dream. New York is America’s money power capital. It’s the epicenter of plutocratic excess.  Monied interests manipulate things their way. They use money to make more of it. They do it the old-fashioned way. They steal it. They chose de Blasio. He’s their man. He won’t disappoint. Wall Street is safe in his hands.

Big Apple progressivism awaits another day. Make it another era. For sure not now.

 ABOUT THE AUTHOR

Stephen Lendman lives in Chicago. He can be reached at lendmanstephen@sbcglobal.net.  His new book is titled “Banker Occupation: Waging Financial War on Humanity.”  http://www.claritypress.com/LendmanII.html

Visit his blog site at sjlendman.blogspot.com

Listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network.  It airs Fridays 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




Why Go After Chris Christie?

MSNBC’s Bizarre Obsession
by ANDREW LEVINE

The LA Times captioned this photo: "New Jersey Gov. Chris Christie walks onto the stage at the Republican National Convention in Tampa, Fla."  They forgot to add this fellow is one of the (many) blowhard cryptonazis festering today in the GOP.

The LA Times captioned this photo: “New Jersey Gov. Chris Christie walks onto the stage at the Republican National Convention in Tampa, Fla.” They forgot to add this fellow is one of the (many) blowhard cryptonazis festering today in the GOP.

Democratic Party cheerleaders have so little to cheer about that they do the next best thing; they make fun of Republicans.   Republicans are easy prey.

Nothing could be easier: just let them speak for themselves.  This can be entertaining.   It is also useful for scaring the Democratic faithful into keeping the faith.

Even so, somebody over at Democratic National Committee (DNC) headquarters ought to tell Rachel Maddow and her colleagues at MSNBC, the all-Chris-Christie-all-the-time cable network, to put a cork in it.  The same goes for Christie-baiters in other corporate media.

They are not helping their cause.

This is so obvious that one has to wonder what they think they are doing.  Do they really want to quash Christie’s chances of getting to the 2016 primaries?

It sure looks that way, but it is hard to believe because the man is a godsend for the Democratic Party.  Maddow and the others must realize this.  Then why are they doing it?

Could it be the pressure of filling all that airtime?  Or the need to boost ratings so that advertising revenues flow in?

ANDREW LEVINE is a Senior Scholar at the Institute for Policy Studies, the author most recently of THE AMERICAN IDEOLOGY (Routledge) and POLITICAL KEY WORDS (Blackwell) as well as of many other books and articles in political philosophy. His most recent book is In Bad Faith: What’s Wrong With the Opium of the People. He was a Professor (philosophy) at the University of Wisconsin-Madison and a Research Professor (philosophy) at the University of Maryland-College Park.  He is a contributor to Hopeless: Barack Obama and the Politics of Illusion (AK Press).




European Labor

Political and Ideological Crisis in an Increasingly More Authoritarian European Union

Demonstration in Brussels.

Demonstration in Brussels. To little avail. New forms of resistance must be devised.

Asbjørn Wahl is Adviser to the Norwegian Union of Municipal Employees, Vice Chair of the Road Transport Workers’ Section of the International Transport Workers’ Federation (ITF), and Director of the Campaign for the Welfare State, a trade-union-based national alliance fighting privatization and liberalization. His most recent book is The Rise and Fall of the Welfare State (Pluto Press, 2011).

Acute economic and political drama mark contemporary Europe. The terrible trauma of the financial crisis has been followed by a sovereign-debt disaster. In the countries most deeply affected, the people have been faced with massive attacks on public services, wages, pensions, trade unions, and social rights. The draconian austerity policies have pushed the situation in those countries from bad to worse, leading them into a deep depression. The result is an ever more serious social and political crisis. Mass unemployment is growing, and both in Greece and Spain youth unemployment has now passed 50 percent. In the European Union this is leading to more intense internal confrontations, both social and political.

Confronted with these multiple crises, the traditional labor movements appear perplexed and partly paralyzed. Social democracy is in political and ideological disarray and confusion, reflecting a deep crisis in these movements. On the one hand, social democrats have played a leading role in fierce attacks on trade unions and the welfare state in countries where they have been in power. On the other hand, other social democrats adopt statements and support appeals that sharply condemn the political course now followed by the European Union. The trade unions have also been stricken by the multiple crises, and have been unable to curb the attacks made on them. Of course, mass unemployment is also weakening their power and influence at the negotiating table. Extensive restructuring of industries, privatization of public services, and increased use of temporary workers have contributed to the unions’ loss of power.

This paralysis of the political left was illustrated in 2011 when huge masses of young people protested in countries like Spain, Greece, Portugal, and Italy. The protest movements were inspired more by what happened at Tahrir Square in Cairo than by political parties or trade unions in their own home countries. The latter were hardly present to build alliances, to politicize, or to contribute to giving direction and content to the struggle. Instead, big parts of the trade-union bureaucracy have stagnated in a social-partnership ideology that no longer has any meaning, since capitalist forces have withdrawn from the historic post-Second World War compromise between labor and capital, and gone on the offensive to defeat the trade-union movement and get rid of the best parts of the welfare state.

While the deepest and most serious economic crisis since the depression of the 1930s is unfolding, criticism of capitalism has more or less fallen silent. The trade union and labor movements no longer represent a general, credible alternative to a crisis-ridden capitalism generating mass unemployment, poverty, suffering, and misery in great parts of the European continent. To the degree unions have put forward alternative proposals, they have ignored strategies and shown neither the ability nor willingness to put to use the means of struggle necessary to gain ground. Trade unions at the European level have sharpened their rhetoric, but they have hesitated when it comes to the necessary mobilization to resist the attacks.

How has this been possible in a part of the world that has hosted some of the strongest and most militant trade unions and labor movements in the world? Why have opposition and resistance not been stronger? And how did we come to the point where social-democratic governments in Greece, Spain, and Portugal have accounted for some of the most serious attacks on unions and the welfare state—until resistance from the population and frustrated voters ousted them from office and replaced them with right-wing governments even more faithful to financial capital?

This article deals with the challenges and barriers that trade unions now face in the European Union. There are a number of structural barriers that the European Union as a supranational institution represents, as well as internal political-ideological barriers that prevent unions from fulfilling their role in the current situation. The most important developments that are challenging, as well as threatening, what many people call Social Europe will be described: attacks on public services, pensions, wages, and working conditions, as well as strong anti-democratic tendencies. But first, it is necessary briefly to address the role of social democracy in Europe today in light of its history.

The Historical Role of Social Democracy

Much now suggests that the historical era of social democracy is over. This does not mean that political parties that call themselves Social Democratic (or Socialist, as they call themselves in southern Europe) will not be able to win elections and form governments, alone or with other parties. However, the role social democracy has played historically, as a political-party structure with a certain progressive social project, now seems to be irrevocably over. The original goals of social democracy—to develop democratic socialism through gradual reforms, place the economy under political control, and meet the economic and social needs of the great majority of the population—were given up a long time ago. Instead, what will be focused on is the role it played during its golden age—the age of welfare capitalism—as an intra-capitalist political party with a social project.

The change of the character of the social-democratic parties has developed over a long time, but today’s more intensified social contradictions help reveal what is hiding beneath the thin veil of political rhetoric. Where social democracy has been in power in EU countries in recent years, its leaders have been loyal executioners of brutal austerity policies, overseeing massive attacks on the welfare state and trade unions. In turn this has, among other things, led to dramatically reduced support for social democrats; with few exceptions, today they are hardly represented in European governments.

The role of social democracy in its golden age was to administer the class compromise—not to represent workers against capital, but to mediate between the classes within the framework of a regulated capitalist economy. As a result, the parties (especially where they were in power over long periods) changed from mass organizations of workers into bureaucratic organizations strongly integrated into the state apparatus, with dramatic losses in membership, and with their organizations increasingly converted into instruments for political careerists, and campaign machinery for a new political elite.

Based as it was on the class compromise, social democracy sank into an ever deeper political and ideological crisis as capital owners, responding to their own need to accumulate capital, gradually began to withdraw from the historic compromise around 1980. The social-democratic parties were so deeply integrated in the state apparatus that they changed alongside the state as it became strongly influenced by the emerging neoliberal hegemony. Social democratic parties have thus contributed greatly to deregulation, privatization, and the attacks on public welfare of the last few decades. This has been true whether it happened under the label of “the third way,” as in the United Kingdom; Die neue Mitte, as it was called in Germany under Gerhard Schröder; or even under the fluttering banner of folkhemmet (“the people’s home”) in Sweden. In fact, when social-democratic governments were in a majority in the late 1990s, for the first and only time in EU history, no change in the EU’s neoliberal policies took place. This led one commentator at the time to conclude that “There’s not much left of the left.”1

The political-ideological decay on the left was well illustrated by the many meaningless statements that came in the wake of the financial crisis in relation to the government emergency measures. Many social democrats in Europe stated that the big government bailouts to the banks and financial institutions were proof that the politics of the left were on their way back. State regulation and Keynesianism had once again come to honor and dignity, it was said. Even Newsweek’s front page proclaimed, “We are all socialists now.”2 The moderate, now retired, General Secretary of the European Trade Union Confederation (ETUC), John Monks, said it this way: “All over Europe, everybody is a social democrat or a socialist now—Merkel, Sarkozy, Gordon Brown…. The wind is in our sails.”3

However, there is a difference between Keynesian social reform policies and desperate government bailouts to save the speculators, financial institutions, and perhaps capitalism itself. That it was the latter was realized by many only as the financial crisis changed into a sovereign debt crisis, and the stimulus packages were replaced by reactionary and anti-social austerity policies, in which banks and financial institutions were saved at the expense of ordinary people’s living standard, welfare, and jobs.

Social democracy has, without exception, supported all of the neoliberal treaties and important austerity legislation in the European Union. Social-democratic parties have fully supported the establishment of the single market, which in reality has been a systematic project of deregulation, privatization, and undermining of public services and trade unions. The problem the social-democratic parties now face is that the demands for Keynesian stimulus policies, which some of them advocate, are in violation of the same treaties and laws which they were instrumental in passing. The social democrats have painted themselves into a corner and are increasingly squeezed between growing social rebellion and their loyalty to the neoliberal European Union.

The political crisis also affects parties to the left of social democracy. In countries where such parties have been in coalition governments with social democrats—France, Italy, Norway, and Denmark—the consequences have ranged from merely negative, to disastrous. To a large degree, the small left parties have been made hostage to neoliberal policies, including support for privatization and the U.S. war machine, such as its invasion and occupation of Afghanistan.4 They have not been able to be consistent critics of the system, let alone offer a credible alternative. This means that there is hardly any political or social force with strength and legitimacy in Europe today which is in a position to take the lead in organizing and coordinating the social resistance that regularly breaks out across Europe against the policies of austerity and rapidly rising inequality of income and wealth.
One of the most dramatic and dangerous consequences of this development, where the traditional labor parties pursue various degrees of neoliberal policies, is that confidence in the political left has broken down, while right-wing populism and extremism have gained ground. Parties representing these politics have now entered the stage—and parliaments—in most European countries. The indications are that a political restructuring of the left will be necessary for the labor movement once again to be able to go on the offensive and establish a wider, alternative social project.

Massive Attacks on Public Services, Wages, and Pensions

Many expected that the financial crisis, with its devastating consequences, would mean the final goodbye to neoliberalism, the speculation economy, and the hegemony of free market forces. These policies had led to a dramatic redistribution of social wealth from labor to capital, from public to private, and from the poor to the rich. The system was discredited, and surely the politicians would now realize that systematic deregulation, privatization, and free-flow capitalism had failed disastrously. The casino economy had to be stopped. In Iceland thousands of jobs, and the entire national economy, were turned into a gambling casino, where a small group of speculators enriched themselves beyond our comprehension at the expense of the country’s population. It was intolerable; the time was ripe for control and regulation.

That was not what happened. The neoliberals and the speculators, who strongly contributed to causing the crisis, remained in the driver’s seat, even when emergency measures were designed and the bills settled. Of course, what happened up until the crisis, as well as what has happened since, reflect power relations in society. It is not pure reason but the prevailing power relations that determine which “solution” is selected. Had reason prevailed—if the interests of the majority of the people had been paramount—the destructive speculation economy would have been stopped. This could have been achieved by regulation, by gaining increased democratic control of banks and other financial institutions, and by banning short selling, hedge funds, and trading in a variety of high-risk (so-called) financial instruments. This would have limited the power of the banks, restricted the free movement of capital, and reformed a tax system that now unburdens the rich and encourages unfettered speculation.

Deregulation of markets, greater inequalities in society, and extensive speculation were key factors that helped create the 2008 financial meltdown. In response, a number of governments ran up public debt to save their banks, financial institutions, and speculators. The effects were disastrous, and in many countries so many people were so strongly affected that neoliberals and speculators probably feared social unrest. Time showed, however, that there was no reason for this; popular revolt against the speculation economy failed to materialize. Trade unions in some EU countries mobilized, but a joint-European-offensive struggle never materialized. Thus, the neoliberals could continue their project of changing Europe according to their own economic and political interests.

The first thing neoliberalism’s champions and beneficiaries did was disclaim responsibility. While their unrestrained speculation and the formidable redistribution of wealth from the bottom to the top had helped trigger the crisis, they now said that the problem was that people had “lived beyond their means.” Myths were and are still being spread that pensions and welfare services are gilt-edged and that these are the real causes of the crisis. In particular, the social elite and the dominant media portrayed working people in Greece as having granted themselves privileges without any real economic basis. This is being used as propaganda to legitimize widespread attack on the welfare state, while financial capital is protected.

The European Trade Union Institute (ETUI) quickly documented that these allegations were just myths with little connection to reality. For example, labor productivity increased twice as fast in Greece as in Germany from 1999 to 2009. According to OECD (Organisation for Economic Co-operation and Development) statistics, on average Greeks work many more hours per year (2,152) than Norwegians (1,422) or Germans (1,430). While a few occupational groups have a low retirement age, pensions at early retirement are so low that hardly anyone is able to make use of them. For example, only thirty or forty of Athens’s 20,000 bus drivers have used the theoretical option of early retirement at age fifty-three. The real average retirement age in Greece is 60.9 years for women and 62.4 for men, which is higher than in Germany, where right-wing politicians played on these myths. These falsehoods still dominate in mainstream media and the political life in Europe, something that tells us a lot about the existing power relations, the media’s servility to the elite, and the political and ideological crisis of the left.

While the bailouts saved the speculators, governments did not use the opportunity to take increased democratic control or ownership of financial institutions. Of course, this would have been a challenging project given the enormous power capitalist forces have achieved in our societies through deregulation and accumulation of wealth over the last decades. The final communiqué of the G20 meeting in Toronto, Canada in June 2010 gave us an excellent example of this. It contained little but the well-known, neoliberal proposals to remove even more barriers to the free movement of capital, goods, services, and labor. There was nothing left of all the proposals that had circulated about the need for regulation of financial markets and to raise more funds from banks and financial institutions. The losses are therefore socialized while profits are privatized—once again.

Governments, the European Commission, the European Central Bank (ECB), and the International Monetary Fund (IMF)—the three latter (un)popularly called the Troika—have not reinstated Keynesian policies and re-regulated finance. Instead, they have used the crisis as an excuse to further transform society to meet the needs of finance capital. Thus the Troika now prescribes the same policy in Greece, Ireland, Portugal, and Italy as the IMF previously imposed upon developing countries and Eastern European nations through the so-called structural adjustment programs, namely massive privatizations. In Greece, for example, the railways, the water supply of Athens and Thessaloniki, utilities, ports, airports, and the remaining public ownership of the national telecommunications company have been privatized. Cuts, privatizations, and widespread attacks on public services are the order of the day in country after country. This is a recipe for depression and social crisis.

In several EU countries—the Baltic states, Bulgaria, Greece, Ireland, Portugal, Romania, Spain, and Hungary—wages, working conditions, and pensions have been severely weakened. Pensions have been cut 15–20 percent in many countries, while wages in the public sector have been reduced from 5 percent in Spain to over 40 percent in the Baltic. In Greece, the number of public employees has already been reduced by more than 20 percent. And still more is demanded: in Spain only one in every ten vacant positions in the public sector is filled, one in every five in Italy, and one in every two in France. In Germany 10,000 public-sector jobs have already been cut, and in the United Kingdom it has been decided to cut close to half a million jobs, which in effect will involve about the same number of jobs in the private sector.

The Value Added Tax (VAT) has been increased dramatically in several countries; social benefits have been slashed, particularly for the unemployed and disabled; budgets have been cut; the labor laws have been weakened (especially employment protection); minimum wages have been reduced; universal welfare schemes have been converted to programs that are means-tested (as is the case with the British child benefit). Meanwhile, the tax on capital has been held constant—or even decreased. Collective agreements and labor rights have been set aside, not through negotiations with the unions, but by government decrees and/or political decisions. Increased competitiveness of European businesses is raised as the main aim, to which all social concerns are subordinated. This represents a new and dramatic situation in Europe. The massive austerity policy and attacks on trade unions constitute, socially and politically, a deadly mix, and the historical experiences in Europe make them particularly frightening. If the trade unions are not able to curb these developments, we face a defeat of historical dimensions for the labor movement in Europe, with enormous consequences for the development of our societies.

Michael Hudson, a former Wall Street economist and now professor at the University of Missouri, notes that there is a massive fight against workers taking place:

The EC [European Community] is using the mortgage banking crisis—and the needless prohibition against central banks monetizing public budget deficits—as an opportunity to fine governments and even drive them bankrupt if they do not agree [to] roll back salaries…. “Join the fight against labour, or we will destroy you,” the EC is telling governments. This requires dictatorship, and the European Central Bank (ECB) has taken over this power from elected governments. Its “independence” from political control is celebrated as the “hallmark of democracy” by today’s new financial oligarchy…. Europe is ushering in an era of totalitarian neoliberal rule.5

Towards an Authoritarian Europe

The European Union’s role has been crucial for what is now taking place in Europe. In addition to the democratic deficit that is embedded in EU institutions, these institutions have been formed and shaped during the neoliberal era. They are dominated by the interests of capital to an extraordinarily high degree. The crisis has been used to wage a massive battle from the heights of the European Union’s governance institutions to further transform Europe in the image of capital.

More and more political power is being transferred to the unelected EU institutions in Brussels. The European Union’s only elected body, the European Parliament, has been sidelined from much of the process. The European Union therefore now moves in the direction of further de-democratisation, at a speed and in a manner with frightening possibilities.

Currently this development is carried out through a number of political innovations:

  1. The European semester, which means that national governments each year will have to submit their proposals for state budgets and structural changes to Brussels for “approval.”
  2. The Euro Plus Pact, a deregulation and austerity pact that includes all Euro countries and other EU nations that have decided to join (the United Kingdom, Czech Republic, Hungary, and Sweden have remained outside of it). Attacks on working hours, wages, and pensions are part of the pact.
  3. New economic governance, with six new laws, also called the “six-pack.” The package is intended to provide the legal basis for the implementation of the dramatic austerity policies, including enforcement rules.
  4. The Fiscal Pact, which, according to the German Prime Minister Angela Merkel, should be irreversible, and which will centralize and further de-democratize the economic power of the European Union, through (among other things) the introduction of financial and other sanctions against member states that do not comply with the requirements. It is an intergovernmental agreement, and therefore formally not a part of the EU institutional framework.

Several of these pacts and agreements overlap, but with an increasing degree of centralization and authoritarian top-down policy instruments, including the transfer of power from nation states to Brussels, and from the European Parliament to the Commission. At the same time, we see a more and more open division between some core countries, centered around Germany and France, and a periphery of weaker states, particularly in the east and south of Europe.

The most crisis-ridden countries, like Greece, Ireland, and Portugal, have more or less been put under the administration of bodies still further away from democratic legitimacy: the European Central Bank, the International Monetary Fund, and the European Commission. The European employers’ association, the Union of Industrial and Employers’ Confederations of Europe (UNICE), and the European Round Table of Industrialists (ERT) exult over the new economic governance model for the European Union.

The ongoing de-democratisation of the economic politics, as well as the attacks on the trade-union movement undertaken in order to prepare the ground for the anti-social, austerity policies, represent developments that we have hardly seen since fascism was defeated in Europe. Four previous judgments (see below) of the European Court of Justice have all contributed to the restriction of trade-union rights in the European Union, including the legal right to take industrial action. Add to this that the political authorities in at least ten EU member states already have implemented pay cuts in the public sector by setting aside collective agreements without negotiating with the unions, and the gravity of the situation becomes clear. An increasingly authoritarian Europe is emerging.

The European Union as a Barrier

Can this development be stopped? Is it possible to save Social Europe from the ongoing massive attacks on welfare and workers’ rights? Is it possible to mobilize social forces across Europe which can curb the massive attacks of capitalist forces and their political servants, with the aim of shifting power relations, and eventually creating the basis for a social offensive?

To say something concrete about this, we will have to look more closely at the challenges and barriers facing trade unions in the social struggle. What is it that restrains them from moving in a strong and coordinated manner into the fight to at least defend the social achievements that were won through the welfare state? It is necessary then to look at some important external barriers, as well as at weaknesses, within the movement itself.

There is a growing realization that the European Union itself creates a number of impediments, not only for economic and social development in Europe, but also for the social struggle. We will consider six such barriers:

Democratic Deficit

The first barrier is the democratic deficit, which has been there from the very beginning but has increased in recent years. Officially, the message from the European Union and its member states’ governments, with the support of the European Trade Union Confederation (ETUC) and other parts of the European trade-union movement, is the opposite. They claim that the Lisbon Treaty of 2007 took an important step towards increasing democracy in that the elected European Parliament had its authority widened in a number of areas.

In the opposite direction, however, some member states were more or less put under administration of the European Central Bank and the European Commission, with support from the IMF, in the wake of the financial crisis. Furthermore, the Parliament has been sidelined in much of the process to develop the new pacts and institutions described above. Finally, the new authority granted to the Commission to impose economic sanctions on member states that do not follow the strict (and financially and politically damaging) stability criteria will transfer power from democratically elected parliaments at the national level to the non-elected Commission, and thus further de-democratize the decision-making process in Europe.

Constitutionalized Neoliberalism

Second, neoliberalism has been constitutionalized as the economic system of the European Union through the Treaty of Lisbon and former treaties. Capital’s freedom of movement and right of establishment are carved in stone, and all other considerations are subordinated to this principle, which we clearly have seen in the labor market (see below). Free competition is another basic principle in the EU treaties. In recent years this has also increasingly been applied to the services market, which differs from the commodity market in the way that trade in services mainly deals with the buying and selling of mobile labor power.

It has long been a common saying on the European political left that socialism is prohibited by the EU treaties. With the stability criteria, and the new sanction regime to force member states’ structural budget deficit below 0.5 percent and government debt below 60 percent of GDP, we can conclude that traditional Keynesianism, or what we may call traditional social-democratic economic policy of the post-war period, is not allowed. This represents a dramatic curtailment of democracy in the EU member states and represents a major step towards a more authoritarian, neoliberal European Union.

Irreversible Legislation

Third, the European Union decision-making process makes the above principles and decisions virtually irreversible. While all member states have some institutionalised protection for their own constitutions—for example by requiring qualified majority (either two-thirds or three-fourths) to change the constitution—in the European Union it has to be full agreement (e.g., 100 percent of the twenty-eight member states) to change it. This means the possibility of changing any of the EU treaties in a progressive direction through ordinary political processes is virtually nonexistent. One right-wing government in one member state can prevent this.

The Euro as an Economic Straitjacket

Fourth, the existence of the euro, currently in seventeen of the twenty-eight member states, puts many of the countries into an economic straitjacket. As long as the economy and productivity develop differently in member states in the Euro Zone, and there is no large common budget to reduce economic inequalities, countries will need quite different monetary policies. Today it is Germany, Europe’s “economic locomotive,” which benefits most from this, with its strategy of exporting its way out of the crisis; meanwhile the most crisis- and debt-ridden countries—such as Greece, Ireland, Italy, Portugal, Spain, and Cyprus—are the losers. The latter have no domestic currency to devalue and thereby make their exports cheaper and imports more expensive. Those countries with higher domestic consumption and weaker competitiveness are forced to conduct a so-called internal devaluation, that is, to increase competitiveness through wage cuts and cuts in public expenditure. This is certainly in line with the EU neoliberal project, but it is devastating to the countries’ economic and social development. This economic straitjacket can also contribute to the development of contradictions between workers in countries in need of very different policies.

Lack of Simultaneousness in the Decision-Making and Implementation Processes

Fifth, the lack of simultaneousness in the decision-making process between the EU member states constitutes a barrier to developing cross-national mobilizations of trade union and social movements against many of the neoliberal and reactionary policies. Although much of the policy within the European Union is adopted by EU institutions, it is carried out in such a way that implementation is made at different times in different member states. The attacks and weakening of the pension systems, for instance, occurred over time and in different forms from country to country, based on recommendations from the European Union, but not through direct legislation. This makes it impossible to create a single European mobilization against these attacks.

The same applies to much of the European Union’s privatization policy. The European Union seldom makes decisions on direct privatization; it decides to liberalize, or to apply its competition rules to ever more areas of society. One of the effects is privatization, as we have seen in energy, transport, and telecommunications. Further, the implementation of these policies takes place at different times and ways in different states, thus making it difficult to mobilize coordinated resistance across Europe.

The very special legislation process constitutes further problems. Directives are not applied in the member states directly; rather, the content of the directives has to be transposed into the laws of each member state. As if this is not enough, EU legislation is written in an almost impenetrable bureaucratic language. This reality is often exploited by national governments and politicians, who play down the effects of various legal proposals, which later turn out to have widespread negative effects.

The Extended Role of the European Court of Justice

Sixth, the European Court of Justice has recently taken on a more extensive role in reinterpreting and effectively expanding the scope of some EU treaties and legislation, particularly regarding trade in services, that is, trade in mobile labor power. In this context, it is important to understand the application of the four judgments that were made between December 2007 and the summer 2008—the Viking, Laval, Rüffert, and Luxemburg cases—all of which contributed to limiting trade-union rights, including the right to strike.

Before these judgments, the dominant view was that labor laws and regulations lay outside the EU domain. They belonged to the jurisdiction of the nation states. Through the four judgments, the opposite has clearly been established: labor market regulations are subordinate to EU competition law and to capital’s free movement and right of establishment. The judgments have also had the effect of transforming the so-called Posting of Workers Directive from a minimum to a maximum directive regarding the wages and working conditions that will apply to workers in companies established in one member state while they carry out work in another.

This directive prescribes that wages and working conditions of the host country should apply. However, according to the above mentioned judgments, this has now changed to include onlysome of the minimum conditions regarding wages and working conditions, thus contributing to social dumping in Western Europe—undermining both wage levels and labor protection laws which have been achieved through trade union struggle over many decades. This has first and foremost been the case in the construction industry as well as in service sectors such as hotels, restaurants, and transport.

The enormous wage gap between countries in a now single European labor market is what really spurs this development—to a considerable degree protected by EU legislation. ILO Convention 94, which intends to secure wages and working conditions in similar cases, was simply ignored by the European Court of Justice. Add to this the high level of unemployment and the extreme exploitation that many individual workers from Eastern Europe are exposed to in Western Europe, both legally and illegally, and we can easily understand how trade unions are being weakened and social regression has become the order of the day in ever more European countries.

The European Union Is Threatening the Unity of Europe

Taken all together, we now see an extremely dramatic and serious situation in Europe. While the establishment of the European Union’s predecessors, the European Coal and Steel Community and the European Economic Community, were based partly on the desire for peace in Europe in the wake of the two world wars, the EU project of the European elites today is bringing about a formidable economic, social, and political polarization. The so-called European Social Model is breaking down. We are thus faced with the paradoxical situation that the “peace project EU” is currently the greatest threat to Europe’s unity, not on a national, but on a social, basis. However, we cannot ignore the possibility that, in certain situations, the result will be rising national antagonisms. Given the history of Europe, the European economic and political elites are playing with fire.

With all the barriers summarized above, it is also an open question whether or not it is realistic to believe that the European Union as a whole can be changed from within through a broad pan-European mobilization. Maybe it will be necessary for individual countries to leave not only the euro but the European Union itself in order to save their economies and their people’s welfare. If so, it will be essential that trade unions and popular forces massively mobilize for a Europe based on democracy, unity, solidarity, and cohesion, and thereby counteract the possibility of total European disintegration.

Internal Political-Ideological Barriers

Although the European Union presents important external barriers to the social struggle, there are also internal barriers that prevent trade unions from fulfilling their historic tasks. This is not just on the political-ideological level, but also concerns the traditions and organizational structures that are no longer as effective in meeting the new challenges under the global neoliberal offensive: the international restructuring of production, the increase in precarious work and migration, and the deregulation of labor markets.

On the political-ideological level, the situation is strongly affected by the crisis on the left, including the fact that social partnership and social dialogue have largely been developed into an overall ideology in dominant parts of the labor movement at both the European and national level. This means that social dialogue has been given an exalted position as the way to promote workers’ interests, completely decoupled from an analysis of specific power relations and how they can promote or prevent the possibilities of workers gaining ground. Thus, the social-partnership ideology is also to a high degree unlinked from the recognition that social progress in the current situation can only be achieved through extensive social mobilization.

The criticism of social dialogue and the social-partnership ideology is, of course, not a criticism of unions discussing and negotiating with employers. These things they have always done, and they must continue. The criticism concerns the fact that social dialogue, always one of many tools in the labor movement’s toolbox, has been turned into the main strategy. And, in effect, labor has taken very specific historical experiences and behaved as if these were true for all time in terms of ideological guidance. When social dialogue produced results in many countries, especially in the first decades after the Second World War, it was precisely because of the power shift that had taken place in favor of the working class and the trade-union movement in the period before.

The class compromise and social dialogue were, in other words, the results of mobilization, harsh confrontations, and considerable shifts in the balance of power. However, in the current ideological version labor leaders portray them as the causes of increasing influence for workers and trade unions. This analytical mismatch creates ideological confusion in the trade-union movement, as, for example, in this statement of the ETUC: “The EU is built on the principle of social partnership; a compromise between different interests in society—to the benefit of all” (emphasis added).6

In face of the massive attacks that employers and governments are now waging against unions and social rights, such ideological claims are being put under increasing pressure. There is little doubt that the capitalist forces in Europe have withdrawn from the historic compromise with the working class, as they are now attacking agreements and institutions that they previously accepted in the name of the compromise. Nevertheless, the social partnership ideology is still deeply rooted in wide circles of the European trade-union movement, as the following remarks by (the now-retired) ETUC General Secretary, John Monks, so well illustrate. The starting point was a reference to some tendencies of the U.S. labor movement, where activists were campaigning for wider social goals:

There may be similar opportunities in Europe, says Mr Monks, if unions can move beyond their old-fashioned enthusiasm for street protests to campaign for policy changes that broadly benefit workers. “Given the tough labor market, and desperate employers, this is not a time for huge militancy,” he says. Instead, “it is a time to demand frameworks of welfare benefits, training, consultation and to put in place fairer pay systems, so that when the economy does recover there is no repeat of the surge in inequality that took place in the past decade.”7

Remarkably, Monks’s comments were made long after the financial crisis had led to an intensified level of conflict in several European countries. How Monks thought to achievebetter social benefits and fairer pay systems without the need for old-fashioned street protestsmilitancy, and the like, is not clearly evident from the interview. Maybe he meant that this could be achieved by offering additional concessions to employers? In any case, the ETUC went so far, even for them, as to sign an extraordinarily weak joint statement with the various employers’ organisations in Europe in connection with the preparation of the EU 2020 strategy. This happened in the summer of 2010, after the Greek unions had carried out several general strikes, as the Spanish unions prepared their general strike, and while the preparations of the French unions for their fight against a pension reform were in full swing. The statement called for:

An optimal balance between flexibility and security…. Flexicurity policies must be accompanied by sound macroeconomic policies, favourable business environment, adequate financial resources and the provision of good working conditions. In particular, wage policies, autonomously set by social partners, should ensure that real wage developments are consistent with productivity trends, while non-wage labor costs are restrained where appropriate in order to support labor demand…. [Regarding public services,] accessibility, quality, efficiency and effectiveness must be enhanced, including by taking greater benefit from well balanced public-private partnerships and by modernising public administration systems.8

To demand that non-wage labor costs are restrained and to legitimize privatization throughpublic-private partnerships in this way—in a situation characterized by crisis, increased class confrontations, and massive assaults on public services—confirms that submission to social dialogue as a main strategy in the current situation can have nothing but demoralizing effects on those who want to fight against social regression.

Another internal barrier for many trade unions is their attachment to the traditional labor parties. The move by these parties to the right, as well as the general political and ideological crisis of the left described above, also affect the trade unions. They have reacted differently to these developments, however. In many countries (like Norway, Sweden, the United Kingdom), the loyalty between the national trade union confederations and the social democratic parties is still solid, while in others it is weaker.

Alone among the Nordic nations, the Danish Trade Union Confederation has declared itself formally independent of the Social Democratic party, but without adopting more radical positions. In the United Kingdom, some unions, like the British National Union of Rail, Maritime and Transport Workers, have broken with social democracy and established themselves in a clearly more leftist and militant position. In Germany, the Schröder (so-called red-green) government (1998–2005) carried out comprehensive attacks on the social-welfare system, and this has led to a deep breach of trust between the Confederation of Trade Unions (Deutscher Gewerkschaftsbund, the DGB) and the Social Democratic Party (SPD). While the party was in opposition it tried to approach the trade-union movement again, which is not an unusual strategy, but it received a rather cool reception from the DGB’s leader, Michael Sommer: “The problem for the SPD is unfortunately that they suffer from a lack of credibility. They were in power until September last year and were involved in many of the decisions we feel are wrong. They still have a long way to go before they have restored confidence.”9

The most extreme experiences with social democratic parties in government, however, have been in Greece, Spain, and Portugal. Considering how those parties so easily could implement their massive attacks on the welfare state and the trade-union movement, it might be time for broader sections of the labor movement to reconsider their strong ties to social democracy. At least, it is difficult to imagine that the close relationship between the trade-union movement and social democracy can be the same in Europe after these experiences, despite having lived down many deep conflicts in the past.

Increased Resistance

Widespread deregulation, the free movement of capital, and the crucial role played by global and regional institutions in the neoliberal offensive necessitate a global perspective and coordination of resistance across borders. Only in this way can we prevent workers in one country from being played against those in another, groups against groups, and welfare levels against welfare levels. Coordination of resistance across borders, however, requires strong and active movements at the local and national level. There is no abstract global fight against crisis and neoliberalism. Social struggles are internationalized only when local and national movements realize the need for coordination across borders in order to strengthen the fight against international and well-coordinated counter-forces. But international coordination presupposes that there is something to coordinate. In other words, organizing resistance and building the necessary alliances locally are decisive as a first step.

The social struggle in Europe is in the process of moving into a new phase. The crisis sharpens the contradictions and provokes confrontations. General strikes have again been put on the agenda in many countries, especially in Greece, where the population has been subjected to draconian attacks that threaten their basic living conditions. In Portugal, Italy, Spain, France, Ireland, Belgium, Romania, Bulgaria, Slovenia, and the United Kingdom, general strikes and/or massive demonstrations have been carried out. The most promising development so far was the general strike that was carried out simultaneously by trade unions in six EU countries (Portugal, Spain, Italy, Greece, Cyprus, and Malta) on November 14, 2011, while unions in other countries also held demonstrations or more limited strikes.

Although so far the outcome of these battles is pretty vague, it is in these struggles that we find hope for another development: alliances with other new and unconventional social movements, especially among young people, as we have seen with Spain’s Los Indignados and in Portugal. One thing has at least become clear: the European social model, as we know it from its heyday, has been abandoned by the European elites, even if some of them are still paying lip service to the trade-union movement.

Even if there are many barriers to a Europeanization of the social struggle, there have been some examples of all-European campaigns organized by trade unions and social movements across national borders. One example was the fight against the EU Port Directive, which was voted down in the European Parliament in 2003 and in 2006, after pressure from below in strikes and demonstrations. Another was the struggle against the Services Directive, which, while not rejected, was modified as a result. The fight against the EU Constitution (later the Lisbon Treaty) also faced a certain Europe-wide resistance, although mobilization was largely based where it ultimately prevailed, first in France and the Netherlands, and later in Ireland.

The dramatic attacks on trade unions and welfare now taking place actually contribute to strengthening the voice of a number of European trade union leaders. The Deputy General Secretary of the European Public Services Unions, Willem Goudriaan states that the Euro Plus Pact represents “an interference in collective bargaining which we have never before seen in the EU.” Even the cautious ETUC General Secretary, John Monks, who in 2009 said that all had “become social democrats or socialists now,” changed his tune shortly before his retirement in 2011 and characterized the Euro Plus Pact in this way: “EU is on a collision course with Social Europe…. This is not a pact for competitiveness. It is a perverse pact for lower living standards, more inequality and more precarious work.”10

That in 2011 the ETUC, which has always been very European Union-friendly, for the first time in the history of the European Union urged the European Parliament to reject a proposed treaty change, is a further indication that a change is underway. This could contribute to a questioning of the legitimacy of the European Union among European workers. The actual treaty amendment concerned the setting up of the European Union’s emergency fund (European Stability Mechanism), whose task is to lend money to member countries in crisis. There was no such mechanism in place when the Greek crisis unfolded, and instead the European Union improvised. The ETUC rejected the proposal because this pact contained nothing in the direction of what might be called a Social Europe, which is becoming an increasingly distant goal.

With continued draconian austerity policies and deeper economic, social, and political crises, there is a possibility of growing contradictions within social democracy, as well as within the trade-union movement in Europe. We perhaps got a taste of this during the ETUC Congress in Athens in May 2011, when the most militant sections of the trade-union movement demonstrated in front of the Congress building, accusing the ETUC of betraying the fight and asking them to go home.

On the political-rhetorical level, there is an ongoing radicalization of the messages from the European trade unions in response to the economic crisis, backed up with some symbolic demonstrations, organized by the ETUC in Brussels on September 29, 2010, in Budapest on April 9, 2011, and in Wroclaw on September 19, 2011. Much remains to be done, however, before this is followed by a more committed and widespread social mobilization, where trade unions put to use their most effective methods of struggle to enforce their claims.

This lack of trade union action is not, of course, only the responsibility of individuals in the leadership of the international trade union organizations. The ETUC board consists of representatives from a number of national trade unions, and the decisions have broad support among them.11 The new situation is a result of enormous shifts in the balance of power in society, the crisis, and intensified class contradictions that have removed the basis for a continuation of the policy of the social pact in the post-Second World War period. The capitalists have changed strategy, but the trade-union movement has not. To acknowledge this and take into account the consequences of it is one of the main challenges of the trade-union movement today.

What Has to be Done?

The political shift towards the right and the political-ideological crisis on the left mean that the trade-union movement itself has to play a more central, independent, and more offensive political role—political not in the party sense, but in the sense that it assumes a broader political perspective in the social struggle. The greater part of the trade-union movement is not prepared to take on such a role today, but it holds the potential. A development in this direction requires that the trade-union movement go through a process of change, not least because of the new conditions for struggle created by global restructuring, neoliberalism, and crisis. In the medium term a reorganization of the political left will also have to be put on the agenda.

If social progress and democratization are our goals, the ongoing economic and social crises have opened the door wide. As the crisis unfolds, the need for a new and radical political course is actually growing day by day. It assumes, however, that trade unions are able to recreate themselves politically and organizationally. The immediate task is to meet the confrontational attacks from capitalists and their political servants, to wage the defensive fight against the massive attacks on wages, pensions, and public services. In the long term, however, this will not be enough, as the Scottish Socialist Murray Smith so rightly points out:

In whatever scenario there is a structural weakness of the workers’ movement, which gives the advantage to the government and the ruling class. The weakness is political and lies in the absence of a credible, visible political alternative to neo-liberalism. Such a political alternative is not a pre-condition for resisting attacks in the short term, perhaps even winning battles. But at a certain point the absence of a coherent alternative has a demobilizing effect. This problem predates the present crisis, but the crisis has made it a much more urgent question. What is necessary is the perspective of a governmental alternative incarnated by political forces that have a credible possibility of winning the support of the majority of the population, not necessarily immediately, but as a perspective. Such a political programme would involve organizing the production of goods and services to meet the needs of the population, democratically decided. That means breaking the stranglehold of finance on the economy, creating a publicly owned financial sector, re-nationalizing public services, a progressive taxation system, measures that challenge property rights.12

The vision of an alternative development of society is important, then, to provide inspiration and direction for the ongoing struggle against the crisis and social regression. It is uncertain, however, that a lack of alternatives is the main problem. There are a great many elements for an alternative developmental model. The alternative to privatization is not to privatize. The alternative to increased competition is more collaboration. The alternative to bureaucracy and control from above is democratization and participation from below. Alternatives to increasing inequalities and poverty are redistribution, progressive taxation, and free, universal welfare benefits. The alternative to the destructive speculation economy is socialization of the bank and credit institutions, the introduction of capital controls, and the prohibition of dealing with suspect financial instruments. The list can be made much longer than this.

Rather than a lack of alternatives, it may also be a question of the ability and will to carry out the mobilization and make use of the resources that are necessary to enforce them. Here, it is important for there to be a political showdown with the ideological legacy of the social pact—that deep-rooted social partnership ideology and belief in social dialogue as the best way of resolving social problems for the benefit of all, as the expression goes.

The working class, the trade unions, and other popular forces are now facing a brutal power struggle, which was started from above. The constant tendencies to canalize the response of the unions to these attacks into the political power vacuum that the social dialogue at present represents at a European level, does little else than weaken the capacity of the unions to mobilize. From this angle, there is much to suggest that it is the ability, rather than the possibility, that is the most important challenge the trade unions now face. The time has come, in other words, to stake out a new course for the trade-unions’ struggle, as was suggested by the Basque trade union organizations on January 27, 2011, when they carried out their second general strike in less than one year:

We have come out to the streets, have gone on strike twice and will continue mobilising. Because we do not want the future of poverty they have prepared for us. They threatened us by saying after the crisis nothing would be the same again. So making things different is in our hands. It is necessary to continue fighting for a real change, for a different economic and social model in which [the] economy works in favour of the society.13

We have seen before that social struggles develop new leadership and new organizations. Although right-wing populists and authoritarian tendencies predominate in the European Union today, the anti-social policies of the elites can also provoke social explosions, especially in southern Europe. It can open the possibility for other developments, where the goals are more fundamental changes of power and property relations and a deepening democratization of the society. The battle is between a more authoritarian and a more democratic Europe. For the time being, the authoritarian tendencies have the upper hand, but power relations can change again.

Notes

  1. John Vinocur, “On the New European Economic Road Map, There’s Not Much Left of the Left,New York Times, November 24, 1998, http://nytimes.com.
  2. NEWSWEEK Cover: We Are All Socialists Now,” February 8, 2009, http://prnewswire.com. The cover appeared on the February 16, 2009 Newsweek.
  3. In From the Cold?,” Economist, March 12, 2009, http://economist.com.
  4. For a more comprehensive discussion of this phenomenon, see Asbjørn Wahl, “To Be in Office, But Not in Power: Left Parties in the Squeeze Between People’s Expectations and an Unfavourable Balance of Power,” in Birgit Daiber, ed., The Left in Government: Latin-America and Europe Compared (Brussels: Rosa Luxemburg Foundation, 2010).
  5. Michael Hudson, “A Financial Coup d’Etat,” Counterpunch, October 1–3, 2010, http://counterpunch.org.
  6. ETUC: The European Social Model,” http://etuc.org.
  7. In From the Cold?
  8. European Social Partners, “Joint Statement on the EU 2020 Strategy,” June 3, 2010, http://etuc.org.
  9. ETUC press release, “EU on a ‘Collision Course’ with Social Europe and the Autonomy of Collective Bargaining,” February 4, 2011, http://etuc.org.
  10. There are also those who argue for more offensive positions, as, for example, the General Secretary of the European Transport Workers’ Federation (ETF), Eduardo Chagas, has been taking inside the ETUC board over the last few years. Lately, some of the south European trade unions also have pushed for an all-European general strike. It is worth noticing that the Nordic trade-union confederations have brought up the rear in these discussions.
  11. Murray Smith, “Den europæiske arbejderbevægelse under angreb!” [The European Labor Movement Under Attack!], Kritisk Debat, no. 56, June, 2010, http:// kritiskdebat.dk. [my translation]
  12. Joint leaflet from the Basque trade unions ELA, LAB, STEE/EILAS, EHNE and HIRU, which carried out a one-day general strike against pension cuts and attacks on the welfare state. See http://labournet.de.



Democrat de Blasio

Was His Swearing In a Tip Off?
by ANDREW LEVINE, Counterpunch
nyc-mayor-bill-de-blasio-inauguration

In the early 2008 primaries, Barack Obama ran to the right of everyone except Joe Biden and Hillary Clinton.  By the time it became a two-way race, it took a keen eye to discern even trivial differences between Clinton and Obama.

Nevertheless, it was reasonable to expect that if Obama won the nomination and then the general election, a full-fledged Clintonite Restoration would be less likely than if Clinton won.  Obama would be more inclined to make at least cosmetic changes and to bring in fresh faces.  There was no evidence supporting this conjecture however and, as it turned out, it was too optimistic.

But in 2008 that wasn’t yet clear and, for want of any more promising expectation, it should have been reason enough, for anyone planning on voting Democratic, to seal the case for Obama.  What right thinking liberal would not jump at a chance to say adieu to the Clintons once and for all?

But liberals are a strange bunch.   There are even polls that suggest that many of them hold Bill and Hillary in high regard.  Incredible, but true.

For most well-meaning liberals, it therefore came down to whether skin color or genitals mattered more.  Skin color won.

Meanwhile, a collective disorder, Obamamania, had broken out.

Obamamaniacs expected Obama to launch a Second Coming of the New Deal (or rather of popular perceptions of it), but without the racism of the original and without a World War at the end.  Obama would wipe the slate clean of Bush-Cheney misrule and make everything right.

The illusion had legs: it persisted for well into the first year of Obama’s first term.

But, even in the heyday of Obamamania, anyone of a moderately sensible bent who had been paying even casual attention to Obama’s campaign had ample reason to be skeptical.

To be sure, nothing Obama said or did during the campaign provided any inkling of the assault he would launch on the First, Fifth and especially the Fourth Amendments.

But there was every reason to expect that, as president, Obama would kowtow shamelessly to Wall Street and to every corporate predator that might come along; and that he would be faithful to the neoliberal agenda: austerity politics, milquetoast regulation when full-fledged deregulation is impossible, free trade, deficit reduction, and the rest.

[pullquote][A shameless sellout to the core] Obama did nothing to support the unprecedented popular mobilization that came into being early in 2011, in response to Wisconsin Governor Scott Walker’s attack on public sector unions, speaks volumes.[/pullquote]

There was also a large grey area, where the evidence was equivocal.

Candidate Obama gave the impression that while he was not about to end George W. Bush’s wars, he would not just take up where Bush and Dick Cheney left off.

However anyone who believed this was grasping at straws.  That the Afghanistan War would be intensified was clear enough, as was the repackaging of the war and occupation of Iraq.

Those wars had been lost long before Obama took office.  But it was plain that Obama intended to take over stewardship of the empire, and therefore that his highest priority would be to save face.

Bush and Cheney had made that objective Number One years earlier; they might as well still have been in charge.

However Obama did give signs that he would continue the perpetual war regime of his predecessors in a more “multilateral,” transparent, and kinder and gentler way.  That would have been a welcome change.

That, in office, he would instead launch or intensify military and paramilitary campaigns in new theaters of operation in Asia and Africa, or that he would do so, as best he could, in secret, was far from obvious.

It was even less predictable that the supposed peace candidate would morph into President Drone; though, in retrospect, the signs were there.

And, of course, no one could predict which campaign promises Obama would forget about – the Employee Free Choice Act is a prime example — or reverse outright, as he is now doing by asking for fast track authority to negotiate the Trans Pacific Partnership agreement.  With the TPT, NAFTA’s former critic is now hell bent on afflicting upon the world what even Obama-friendly pundits regard as NAFTA on steroids.

In retrospect there too, however, there is a discernible pattern: if it benefits working people, don’t count on Obama to do anything about it; count on him to serve and protect his paymasters instead.

But even in retrospect, the extent to which Obama has sided against organized labor could not have been predicted – not in view of how dependent the Democratic Party is on the union movement for foot soldiers and money.

That Obama did nothing to support the unprecedented popular mobilization that came into being early in 2011, in response to Wisconsin Governor Scott Walker’s attack on public sector unions, speaks volumes.

And even when mass demonstrations gave way to a recall campaign a year later (the delay being required by Wisconsin law), the most Obama would do was send out a tweet the night before election day.

Had he campaigned for Tom Barrett, the anodyne Democrat running against Walker, Barrett probably would have won.  The former Milwaukee mayor was not popular with African Americans in and around Milwaukee County.  Obama still was; he could have gotten them out to vote.

But, with the 2012 election looming, the President decided that there was more percentage in keeping mum.  And so, instead of coming into the state to campaign, he very conspicuously courted rich donors across the state line in Minnesota and Illinois.

Blame Republicans, blame the Great Recession, blame “we, the people” for not forcing him to do what he supposedly wants to do, blame whatever and whomever Obama apologists like: the fact is that Obama’s allure was always out of sync with an abundance of evidence, and that the reality has turned out to be even worse than anyone looking at the evidence could have imagined.

However the will to believe is a mighty force, and candidate Obama was good at turning himself into a Rorschach figure upon which unwary voters could project their hopes for change.

Ever resourceful, they claimed, for a while, that in running to the right, Obama was only doing what he had to do; that he was faking right in the campaign so that he could turn left after he won.

Then he did win, and news of his appointments began to trickle in.  The true believers had a new set of “disappointments” to make the best of.

For a while, the word was that it only seemed that he was re-empowering Clinton era poltroons.  In fact, like Abraham Lincoln (according to pop historian Doris Kearns Goodwin), he was concocting a “team of rivals” from whom he would take what he needed but still call the shots.  How shrewd!

But the excuses could only prevail for so long.  It started slowly but, in time, the true believers began to fall away.  By the summer of 2009, the pace accelerated.  Even so, it took almost half a year more for the tail of the comet to break off for good.

By now, Obamamania is a distant memory.  It could hardly be otherwise; the Rorschach figure is no more.

At what point did the illusion – an unconscious wish, in Freud’s terminology – give way to a delusion, an illusion maintained in the face of overwhelming evidence to the contrary?

I would suggest that the unmistakable tip off came even before Obamamania peaked — in the summer of 2008 when he announced that Joe Biden would be his running mate.

Biden: Imperial shill on steroids.

Biden: Imperial shill on steroids.

Biden was not just the right most, or second right most, of the early contenders.   He was a creature of the Democratic Party establishment; too whacky and too loose a cannon to stand alone, but a good choice for Vice President, if the idea is to signal (yet again) that the ruling class would have nothing to fear from an Obama presidency.

Before he entered national politics, Obama had said things in passing that might suggest an independent streak and a penchant for decency and reasonableness that could trouble key constituencies.  Biden could help too with that.

There was no leading Democrat more servile to the Israel lobby or to other nefarious right-wing ethnic pressure groups.  Biden takes to them like a duck to water; all they need do is court him, and he jumps on board.

I thought of Obama’s choice of Biden when it was announced that New York’s new mayor, Bill de Blasio, the great progressive hope (along with Elizabeth Warren), chose Bill Clinton to swear him in at Gracie Mansion.  Could this have been another tip off moment?

De Blasio talked up a “populist” storm at the inauguration, as Clinton – the bride at every wedding, the corpse at every funeral – and his official wife smiled on.  He pledged to reverse New York’s “tale of two cities” — one for the filthy rich, one for everyone else – just as he had during the campaign.

The incongruity is staggering: two Clintons presiding over a speech berating inequality.

No president did more to give inequality a boost or to make the neoliberal agenda the order of the day.  Because he could pull liberals along, Bill Clinton was an even more effective Reaganite than the Gipper himself.

On the root causes of the concerns that led voters to support de Blasio in landslide proportions — trade policy and financial deregulation – no president did more to establish the villainous dictum of Reagan’s political soul mate, Margaret Thatcher: “there is no alternative.”

To be sure, de Blasio and the Clintons are not strangers.  In the early 90s, he was a regional director in Clinton’s Department of Housing and Urban Development and, in the 2000 election, he worked as a campaign manager for the First Lady when she was parachuted into New York to run for the Senate.

But we shouldn’t make too much of this.  To get where he now is, de Blasio, like the young Bill Clinton, had “to remain viable within the system.”  He could hardly not have latched on to powerful Democrats.

It is relevant too that, at least in his first administration, Bill Clinton was less wary than Barack Obama of appointing genuine progressives to low and middle echelon jobs; de Blasio was not the only fish out of water.

Indeed, Clinton’s first Secretary of Labor was Robert Reich, a left-leaning, equality-friendly liberal who mostly kept mute back in the day, but who now, from his perch at UC-Berkeley, sounds rather like de Blasio.

Nevertheless, it was a bit much for the new mayor to have gone on about how “honored” he was to have had the opportunity to work in the Clinton administration.

I know: having asked the former president to administer his oath of office, he had to acknowledge his presence by saying something nice.  But “honored”?  Really?

Working for Hillary, at any time under any circumstances, is even harder to stomach.  But a Democrat’s gotta do what a Democrat’s gotta do.  Maybe de Blasio should get a pass on that as well.

At this point, having not yet done anything awful, the man deserves the benefit of the doubt.

[pullquote]For as long as the wretched Clintons have been on the scene, their way of dealing with left-leaning currents within the Democratic Party has been to coopt what they cannot purge.[/pullquote]

More than that: he deserves praise for talking up equality in Clinton’s face.  That is like talking up privacy or peace or the rule of law at an Obama event.

Still, the incongruity remains.  Why would anyone with a progressive bone in his body bring the Clintons in at all?

The New York Times claims “it was a nod to the pragmatic approach of the former president.”

A more plausible way to put it — also suggested by the Times, though not in so many words — is that de Blasio’s idea was to signal what they euphemistically call “the business community” that it would be unwise to stiff the mayor the way their counterparts in other countries with Third World levels of inequality would.  De Blasio wanted to make a show of having the Democratic Party establishment on his side.

That would matter locally of course, and it is becoming more important nationally too, now that the Republicans are engaged in a fratricidal war between hapless, old order, establishment plutocrats and Tea Party loonies; a war the loonies are winning.

The Times also claims that, for their part, the Clintons are interested in acquiring a “progressive sheen” as the Democratic Party shifts left, and as Hillary “positions herself for 2016.”

In other words, the conventional wisdom, for now, is that de Blasio is playing the Clintons and vice versa.

Maybe that is what de Blasio thinks he is doing — taking advantage of the opportunism that runs in the Clintons’ blood.  But it is a fool’s game; the Clintons don’t take left turns – not for real, anyway.

For as long as that wretched family has been on the scene, their way of dealing with left-leaning currents within the Democratic Party has been to coopt what they cannot purge.

With Hillary Clinton “positioning herself for 2016,” don’t count on that changing just because New York City now has a progressive mayor or because polls show that increasing inequality has got the public’s goat.

If de Blasio thinks he can play the Clintons, he should think again.

He has as much chance of coming out on top as, say, the Palestinians do in negotiations with Israel – with or without John Kerry playing umpire.  The power relations are too lopsided.

Yes, there are Democrats who think of themselves as “the Democratic wing of the Democratic Party” and there are left leaning Democratic organizations like Progressive Democrats of America.

It is telling, though, that one can hardly utter that name without the word “oxymoron” springing to mind.

This is why, if de Blasio truly deserves the benefit of the doubt  — if he is not, like Obama, just another Clintonized Democrat in disguise – the man is in a terrible fix.

New York isn’t exactly a company town, but the “financial industry” (another euphemism) does have enormous power within it.  A war on banksters, urgent and necessary as it surely is, cannot be fought by one city alone, not even New York City.

De Blasio could hardly fail to worry that banksters and other corporate malefactors will bring his administration to grief; they have motive and opportunity and all the means in the world.

But their power would be nothing without the sufferance and support of the state.  It would therefore help enormously if de Blasio really could get the Democratic establishment on his side.

But that support comes at a steep price.  De Blasio would have to sell out his principles – assuming, again, that, unlike Obama, he really does have principles to sell.

There is no easy way out of this situation.  And the problem is not just de Blazio’s.  It is every genuine progressive’s.

Trying to fix the rot from within is, at best, a waste of energy and time.  The way forward is to break free from it altogether.  De Blasio is bound to realize this soon, if he hasn’t already.  But what will he do then?

*                                                *

Being elected Mayor of New York is a far bigger deal than being elected to the City Council in Seattle.

But Kshama Sawant’s victory there may, in the end, be the more historic achievement.

Sawant ran on the Socialist Alternative ticket – in express opposition to the Democratic Party of Barack Obama and the Clintons.

That she won – at a time when “socialism” has become a term of reproach for both Democrats and Republicans, and when the media all but ignore third parties and independent candidacies  – is attributable not just to her political skills, but to the fact that public support for the two-party system and for capitalism itself is now extraordinarily low.

The Occupy movements provided more than an inkling of this, and the polling evidence is clear.  There has not been a better time in years to shake our duopoly party system to its foundations.

The Democratic Party, in the Age of Clinton and Obama, is beyond redemption.  The only thing it is good for is fighting Republicans back.

This is why the only argument Democratic Party cheerleaders, like the ones on MSNBC, still have is the lesser evil argument.  And, by now, everyone knows or should know where lesser evilism leads; all one need do is look around.

But as de Blasio’s victory in New York shows, disgust with the status quo is so far-reaching and profound that, in the right circumstances, progressive candidates can sometimes win electoral contests under the Democratic Party’s aegis.

But then the next step, if de Blasio is not to go Obama’s way, is just the opposite of the one he took at Gracie Mansion.  It is to break free from the forces he invited in.

De Blasio is of an age when, like everyone else learning to type in the United States, he must have encountered the old drill sentence “Now is the time for all good men to come to the aid of the party.”

That well-worn phrase is thought to have been contrived by a typing instructor named Charles Weller some hundred years ago.  It has performed yeoman’s service as a teaching aid to generations of students.  But, for de Blasio, it is terrible advice.

What he and other progressive Democrats should realize, the sooner the better, is that Weller got it exactly wrong.  Now is not the time to come to the Democratic Party’s aid.

Now is the time to defect.

This is advice Elizabeth Warren too should heed, along with a few other elected officials.  Progressives, real ones, are not about to become players in the Democratic fold; they are not going to move the party leftward or anywhere at all.

No matter how outrageous inequality has become, that option is foreclosed.  For that, we have not only the GOP but also, more importantly, the Clintons and Obama to thank.

Kshama Sawant won her City Council seat running for office as a socialist.  We need more of that; a lot more.

But it would also be enormously helpful if de Blasio and others like him, who ran and won as Democrats, would join her – if not on the same party ticket then in some other way – by breaking free from the Democratic Party’s control.

A good slogan might be: “Kshama yes, Hillary no.”

For making the world a better place, electoral politics can only be part of a larger story – especially in today’s world where, thanks to neoliberal globalization, democracy deficits are everywhere; in other words, where the outcomes are more or less the same regardless who gets the most votes.

In the United States, where very nearly the only politics there is is electoral, elections are an especially important part of the larger story.

This is why making common cause with the Clintons is such a dangerous game.

Fortunately, though, it is not the only game in town; not after Kshama Sawant and others like her.

A better world is possible; de Blasio’s victory, like Sawant’s, shows that.  But there is the problem of getting from here to there.  The Clinton way is no way at all.

Will it be de Blasio’s way?  Inviting Clinton to do his master of ceremonies routine at Gracie Mansion was an ominous sign.  But, in all fairness, it is too soon to say it was his Joe Biden moment; a tip off of what to expect.

At this point, the jury is out.   It could hardly be otherwise: in all likelihood, de Blasio hasn’t yet figured out what his way will be.

The choice is still his – and everyone else’s who genuinely does believe that a better world is possible, and who is prepared to do something to bring it, not just its “sheen,” into public consciousness.

ANDREW LEVINE is a Senior Scholar at the Institute for Policy Studies, the author most recently of THE AMERICAN IDEOLOGY (Routledge) and POLITICAL KEY WORDS (Blackwell) as well as of many other books and articles in political philosophy. His most recent book is In Bad Faith: What’s Wrong With the Opium of the People. He was a Professor (philosophy) at the University of Wisconsin-Madison and a Research Professor (philosophy) at the University of Maryland-College Park.  He is a contributor to Hopeless: Barack Obama and the Politics of Illusion (AK Press).