Global war on the 99%

How international financial elites change governments to implement austerity – Published on Intrepid Report, by Ismael Hossein-Zadeh, March 4, 2014.

… Despite their many differences, these social turbulences share two common features. The first is that they are largely induced, nurtured and orchestrated from outside, that is, by the United States and its allies—of course, in collaboration with their class allies from inside. And the second is that, contrary to the long-established historical pattern of social revolutions, where the desperate and disenfranchised masses rebelled against the ruling elites, in most of the recent struggles it is the elites that have instigated insurgencies and civil wars against the masses. The two features are, of course, integrally intertwined: essentially reflecting the shared interests and collaborative schemes of the international plutocracies against the global 99%. 

Fighting to make austerity economics universal: … //

… Class war on a global scale:

As noted, all the schemes and wars of regime change, whether by the traditional military means or by the “soft” power of the global financial juggernaut, essentially represent one thing: a disguised class war on a global level, a relentless worldwide economic war by the one percent financial-economic oligarchy against the rest of the world population.

Class struggle in an economically-tiered society is of course not new. What is relatively new in the recent years’ war of the 1% against the 99% is its escalated pace, its widespread scale and its globally orchestrated character. While neoliberal austerity attacks on the living conditions of the public in the core capitalist countries began (formally) with the supply-side economics of President Ronald Reagan and Prime Minister Margaret Thatcher more than three decades ago, the brutality of such attacks have become much more severe in the context of the current financial/economic crisis, which began with the 2008 financial crash in the United States.

Taking advantage of the crash (as an economic shock therapy, as Naomi Klein put it), the financial oligarchy and their proxies in the governments of the core capitalist countries have been carrying out a systematic economic coup d’état against the people the ravages of which include the following:

  • Transfer of tens of trillions of dollars from the public to the financial oligar­chy through merciless austerity cuts;
  • Extensive privatization of public assets and services, including irreplaceable historical monuments, priceless cultural landmarks, and vital social services such as healthcare, education and water supply;
  • Substitution of corporate/banking welfare policies for people’s welfare programs;
  • Allocation of the lion’s share of government’s monetary largesse (and of credit creation in general) to speculative investment instead of real investment;
  • Systematic undermining of the retirement security of millions of workers (both white and blue collar) and civil servants;
  • Ever more blatant control of economic and/or financial policies by the rep­resentatives of the financial oligarchy.

Combined, these policies have significantly aggravated the already lopsided income/wealth distribution in these countries. The massive cuts in social spending have resulted in an enormous transfer of economic resources from the bottom up. The transfer has, indeed, more than made up for the 2008 losses of the financial speculators. In the U.S., for example, the wealthiest one percent now own 40 percent of the entire country’s wealth; while the bottom 80 percent own only seven percent. Likewise, the richest one percent now take home 24 percent of the country’s total income, compared to only nine percent four decades ago [4].

This shows that, as pointed out earlier, while neoliberal attacks on the 99% in the core capitalist countries may not seem as violent as those raging, for example, in Venezuela, Syria or Ukraine, the financial impact of such attacks on the living conditions of the 99% is no less devastating.

Plutocrats of the world are united: … //

… Implications for globalization from below:

What conclusions can the 99% draw from this? What can the working people and other grassroots do to protect their jobs, their sources of livelihood, their communities and their environment? What can communities of ordinary people do to undermine the strategies of the global 1% that block life-sustaining progressive social and economic reforms?

In the same fashion that, in their fight against the working people, the elites of the international capitalist class are not bound by territoriality or national boundaries, so does the working class need to coordinate its response internationally.

A logical, first step deterrent to transnational capital’s strategy of blackmailing labor and communities through threats such as destroying or exporting jobs by moving their business elsewhere would be to remove the lures that induce plant relocation, capital flight or outsourcing. Making labor costs of production comparable on an international level would be crucial for this purpose. This would entail taking the necessary steps toward the international establishment of wage and benefits, that is, of labor cost parity within the same company and the same trade, subject to (a) the cost of living, and (b) productivity in each country.

A strategy of this sort would replace the current downward competition between workers in various countries with coordinated bargaining and joint policies for mutual interests and problem-solving on a global level. While this may sound radical, it is not any more radical than what the transnational 1% is doing: coordinating their anti-99% strategies on a global scale. If at an earlier stage of capitalist development “workers of the world unite” seemed an outlandish dream of the leading labor champion Karl Marx, internationalization of capital, the abundance of material resources and developments in technology, which has greatly facilitated cross-border organizing and coordination of actions by the 99%, has now made that dream an urgent necessity.

As capital and labor are the cornerstones of capitalist production, their respective organizations and institutions evolve more or less apace, over time and space. Thus, when production was local, so was labor: carpenters, shoemakers, bricklayers, and other craftsmen organized primarily in their local communities. But as capitalist production became national, so did trade unions. Now that capitalist production has become global, labor organizations too need to become international in order to safeguard their and their communities’ rights against the profit-driven whims of the footloose and fancy-free transnational capital.

Many would argue that these are not propitious times to speak of radical alternatives to capitalism. The present state of the sociopolitical landscape of our societies appears to support such feelings of pessimism. The high levels of unemployment in most countries of the world and the resulting international labor rivalry, combined with the austerity offensive of neoliberalism on a global level, have thrown the working class and other grassroots on the defensive. The steady drift of the European socialist, Social Democratic, and labor parties/governments toward the U.S.–style market economies and the erosion of their traditional ideology, power, and prestige have led to workers’ confusion there. The collapse of the Soviet Union, however much some socialists have always distanced themselves from that system, haunts the specter of socialism, and is likely to do so for some time to come. These developments have understandably led to workers’ and other grassroots’ confusion and disorientation globally.

None of these, however, mean that there is no way out of the status quo. Capitalism is not only “destructive,” it is also “regenerative,” as Karl Marx put. As it captures world markets, universalizes the reign of capital, and disrupts the living conditions for many, it simultaneously sows the seeds of its own transformation. On the one hand, it creates common problems and shared concerns for the majority of the world population; on the other, it creates the material conditions and the technology that facilitate communication and cooperation among this majority of world citizens for joint actions and alternative solutions.

When the majority of world population, the global 99%, will come to the realization and determination to actually appropriate and utilize the existing technology and material resources for a better organization and management of the world economy, no one can tell. But the potential and the long term trajectory of global socioeconomic developments point in that direction. The distance between now and then, between our immediate frustrations and the superior but elusive civilization of our desire, can be traversed only if we take the necessary steps toward that end [6].

(full long text and references).

(Ismael Hossein-zadeh is Professor Emeritus of Economics, Drake University, Des Moines, Iowa. He is the author of The Political Economy of U.S. Militarism (Palgrave—Macmillan 2007), the Soviet Non-capitalist Development: The Case of Nasser’s Egypt (Praeger Publishers 1989), and most recently, Beyond Mainstream Explanations of the Financial Crisis (forthcoming from Routledge, April 29, 2014). He is a contributor to Hopeless: Barack Obama and the Politics of Illusion /AK Press 2012).

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