Tag: International

No one should be surprised these days when yet another company goes belly-up in these difficult financial times, especially in devastated economies such as Spain.  Yet the bankruptcy of Fagor, the flagship cooperative in the Mondragon Cooperative Corporation (MCC) has shaken many anti-capitalists around the world as akin to witnessing the ending of Camelot. The fact that at least two of the other largest cooperatives in the Mondragon network, Caja Laboral (the bank and financial center of the corporation) and Eroski (a chain of retail stores throughout Europe)  are in dire financial straits has only added to the ominous threat.

Fagor, with its 5,600 workers, is a relatively small part of the whole. Even so, Trevino (Fagor’s CEO) warns that its fall “will have an uncontrollable domino effect on the rest of the group with major social implications.” He believes Fagor’s liquidation would create a €480m hole at Mondragon, including inter-group loans and payments the group’s insurance arm would have to make on Fagor workers’ unemployment policies.

Mondragon has promised to find new jobs or offer early-retirement terms for as many as it can of Fagor’s Spanish workers, but this is a tall order in a country with 27% unemployment. Besides their jobs, workers stand to lose the money they had invested in the co-op if it is liquidated.

Demystifying the Mondragon Myth

For the last 50 some years, the growth of what is now the Mondragon Cooperative Corporation has given many anarchists, socialists and other progressives in the cooperative movement the hope that yes, Virginia, there really is a viable alternative to Capitalism or, at the very least, an economic system that could provide a transition to socialism. Moreover, although many socialists won’t easily admit it, there is often the underlying hope that somehow this transition could occur “peacefully”, without a real class struggle ending in state ownership; that somehow, within the belly of the beast of capitalism, the cooperative model could “out compete” the capitalist multinationals at their own game and become the dominant economic paradigm.

Yet, as one blogger commented in Alternatives to Capitalism,

“There is no escaping the need to challenge Wall Street and the other big financial centers across the world for political and economic power which requires a well-organized and intense class struggle […] something the promoters of these cooperative schemes try to evade as they try to convince workers there are ways around bringing mines, mills and factories under public ownership which is going to require the nationalization of entire industries.”

LEFT UNITY HAS BEEN CREATED! Yes, this is the new political party, not necessarily the reality of “Left Unity” itself. Like all births, it is never easy. But it has the possibility of actually changing electoral politics in Britain. And like all births, it should be recorded.

Tonight’s piece covers a piece of news, some coverage of the student occupations in Britain including two petitions in response to the actions of the universities to these occupations, and a short homage to Nelson Mandela and the endless hypocrisy of our mainstream politicians.

While, of course, the justifications for permanent austerity under the Tories and the pensionable age being shifted to 70 and tax breaks for married people whose earnings were over a certain level, while somehow continuing impoverishment of the majority were sort of glossed over (really if impoverishment of the majority is required for your system, wouldn’t you start to raise the obvious point that the system is NOT worth it?) were found all over the BBC following the Autumn Statement of Minister of the Exchequer, George Osborne, many things that should have been said never quite made it to the news of the BBC. Given that they have a 24-7 news channel; surely a few moments could have been spared from their extensive scheduling.

When the term poor is used and when we discuss poverty, there are commonplace definitions that we always rely on. To be poor relates to a lack of money or income. But that is a tautology in many senses; a definition that already presumes that poverty relates solely to income and while commonplace is essentially misleading. A far more useful definition of poverty relates to a broader range of things within a social context. Let’s begin with some definitions of poverty in the context of the modern debate on poverty:

Let’s start with that advanced by the Joseph Rowntree Foundation:

“Relative Poverty – When we talk about poverty in the UK today we rarely mean malnutrition or the levels of squalor of previous centuries or even the hardships of the 1930s before the advent of the welfare state. It is a relative concept. ‘Poor’ people are those who are considerably worse off than the majority of the population – a level of deprivation heavily out of line with the general living standards enjoyed by the by the majority of the population in one of the most affluent countries in the world (http://www.jrf.org.uk/sites/files/jrf/poverty-definitions.pdf).”

Additional definitions address the impact of poverty on ensuring accessing fundamental notions of rights, like the European Commission definition. In its Joint Report on Social Inclusion (2004) the EC defined poverty in the following way:

“People are said to be living in poverty if their income and resources are so inadequate as to preclude them from having a standard of living considered acceptable in the society in which they live. Because of their poverty they may experience multiple disadvantage through unemployment, low income, poor housing, inadequate health care and barriers to lifelong learning, culture, sport and recreation. They are often excluded and marginalised from participating in activities (economic, social and cultural) that are the norm for other people and their access to fundamental rights may be restricted (http://www.jrf.org.uk/sites/files/jrf/poverty-definitions.pdf).”

For Preventing the Poor People in Britain from being a burden to Their Country, and For Making Them Beneficial to The Public

Un hommage á Jonathan Swift

Whenever I travel the country and listen to the newscasts and read the papers, it has become evident that the poor are a significant burden upon the country. Instead of working, women go begging at food banks to provide for their children.  Others sit on the streets with their offspring begging money from their betters. Clearly these lazy creatures assume that we as a society have some responsibility to ensure the existence of their offspring. Moreover, since they have to care for their children, they obviously have no time to actually work to provide for their existence. Their lack of property and their inability to ensure their and their offspring’s survival is threatening the very nature of our society.  

“Our starting point for 2015/16 will be that we cannot reverse any cut in day to day, current spending unless it is fully funded from cuts elsewhere or extra revenue – not from more borrowing.

So when George Osborne stands up next week and announces his cuts in day to day spending, we won’t be able to promise now to reverse them because we can only do so when we can be absolutely crystal clear about where the money is coming from (Ed Miliband, June 22, 2013 (http://www.channel4.com/news/miliband-labour-will-not-borrow-more-to-reverse-cuts).”

It has become rather obvious that the tactic of shifting the Labour party to the left is futile, even in situations where government cuts are unpopular and they can pick up votes they refuse to reverse direction (e.g., bedroom tax and changes to child care benefit). Instead of saying we won’t be borrowing to reverse changes, the idea of taxes on wealth, the introduction of a general financial transactions tax, or introducing more bands on income tax to make it more progressive or closing tax loopholes to fund these changes is not discussed.

Adoption of neoliberalism as the basis for economic policy decisions is a political decision! It is not as though there is a dearth of other choices for economic policy that do not rely on lowering wages to maintain profitability and privatisation of public services.  As such, choices in the electoral arena are essentially mainstream political parties upholding a neoliberal position. There is essentially no political party that represents the interests of the majority in the context of a grotesque attack on the social welfare state, divide and rule ideology, and privatisation of what remains of the state sector including parts of the NHS.

h/t to Elise Hendricks for the title of this piece!

This piece is a summary of a paper that I presented at the Left Forum in a panel organised by Geminijen. If you want to see a copy of the longer paper (which is being edited for English and clarity), send me a personal message here with your email and I will send it to you. Fran Luck who is the producer of the radio series “Joy of Resistance: Largest Minority” on WBAI was in the audience and asked us to appear on her show. If you would like to listen to Geminijen, Diana Zevala (who has written for the ACM on education), Barbara Garson and me, please click here: http://archive.wbai.org/files/mp3/wbai_130703_210001wed9pm10pm.mp3).

While in no way denying the impact of the introduction of austerity upon the working class, the disabled and the poor as a whole, there is no question that the impact of austerity on women is far greater. This is due to the job losses in the state sector where women’s labour is predominant, our historically lower wages due to the undervaluation of traditional women’s labour in a capitalist labour market leading to greater dependence upon the social welfare state, and our overwhelming responsibility for reproduction of the working class and how that impacts on our working lives.  The failure of the state to provide completely for social reproduction especially in childcare and care for the infirm and disabled has resulted in women having: 1) discontinuous working lives; 2) and the predominance of our labour in part-time employment.

With incomes falling in the advanced capitalist world as part of general economic policy, women face greater threats than men due to our responsibility as primary caretakers of children, the disabled and the elderly. Women are facing lower incomes, lower pensions, and an increasing reluctance for the state to support women in the workplace through provision of child-care and after-school programmes and shouldering carer responsibilities for the elderly and infirm. Given the transformations in general employment possibilities towards increasingly underemployed and part-time labour, we will begin to face competition from men for the jobs we have normally held while benefits are increasingly run down.



We face increasing economic insecurity without sufficient state assistance to ensure that our children and families can have a decent standard of living provided through employment. Women can no longer depend upon the fact that our labour is of sufficient value to capitalists as men also face increasing precariousness in their employment, and in the absence of a strong labour movement or left-wing movements, can serve the same role of an easily intimidated low-paid work force.

The destruction of the public sector enabling the weakening of the last bastion of trade union organisation to force through even lower wages and a reduction in social subsistence levels of wages along with a further deterioration in working conditions on the basis of non-competition with emerging and peripheral economies is nothing less than a race to the bottom and women will be the first, but not the last, victims of neoliberal economics in the advanced capitalist world.

This piece will be divided into 3 parts. The first is composed of some general statements on austerity. The second part will discuss the women’s labour market in Britain and the impact of austerity. The third part addresses the attack on the universal social welfare state in Britain and its impact upon women.

This piece is my most viral piece to date and appeared on Daily Kos on December 15, 2011. It's an ironic diary coming from myself given all the economic pieces I write but I do have range on other issues, too. It's about the NDAA and is still relevant because the US can still indefinitely detain American citizens, and the White House has never been able to properly define the terms "associated forces" among others things with regard to Al Qaeda. Section 1021 can still be used to indefinitely detain American citizens.

You may recognize my illustration about the NDAA as well which is also still relevant.

Not that it should only be a worry if it happens to American citizens. This war on terror George W. Bush league crap that the Obama administration is still peddling, even with its signing statement claiming it won't matter while they are in the White House, assuming, of course, no Republican will ever win an election again. That is ridiculous, insulting, and a major assault on the Bill of Rights. This is further compounded with the White Paper and the Rand Paul filibuster in which he didn't get an answer to his simple question really on how they define the term "engaged in combat" when it comes to whether they can order a drone strike on an American citizen on American soil. This one is still relevant so enjoy.

Processing the President's Disdain for Due Process

That’s right. You know what’s going on.

This administration never threatened to veto the NDAA because of civil liberties concerns. This administration is using the same fear mongering that the Bush administration has used concerning Al Qaeda to codify the unchecked executive power it has claimed erroneously for itself in the exact same way.

Subverting the rule of law? How dare I? Well the 4th amendment, due process, kill lists, and the NDAA also speak to my title. Yes, they speak to it despite those that decided politicians were more important than the principles they pretended to have in 2004 now outed as hypocrites mostly. However, that being said, I’m talking about subverting the rule of law in a different way but equally as damaging on the economic front.

After all, it was at the SOTU merely just a year ago that President Obama assured us that something was going to be done about the Wall St. perpetrators of our mortgage and foreclosure crisis. This was a crisis in which they defrauded consumers with sub-prime NINJA loans pumping up the housing bubble and then dumping the private debt overhang onto the economy destroying over 10 trillion in housing wealth. This left consumers with massive loads of private debt and everyone else jobless like this recovery.

This White House’s DOJ has made a complete mockery of the concept of Justice in and of itself. That illusion of Justice is perpetuated to this day and normal people are devastated because of it. Let President Obama know you are not amused. I have.

Recently, President Obama gave a speech at the U.N with a recurring theme I found disturbing. The whole bluster involved with the U.S “making sure there is not a nuclear Iran ever” as if repeating the straight up ignorance of the neoconservatives on Iran, is not dangerous and ignorant like anyone making excuses for it. It is.

Serious signs of this kind of ignorance are unfortunately coming from the President’s  Secretary of Defense; Leon Panetta who says “all options are on the table” with Iran. That’s really not OK. It’s actually insane. All Options were on the table when Bill Clinton bombed Iraq(which was used as an excuse for the 2003 invasion) as well so that is anything but an innocuous statement.

Make no mistake, the real danger here is a country and now two administrations addicted to war while we linger here without jobs.  I don’t find the case convincing at all that they are building a nuclear weapon in the NIE, but even if they are it doesn’t matter. There are a number of reasons; some which involve a basic education on the Middle East and Islam our President and too many Democrats didn’t take the time to learn.  

Cross posted at our new beta site Voices on the Square and The Stars Hollow Gazette

Yes, another crash is coming. I can’t predict precisely when as that would be a fool’s errand, but much closer than you think. It will probably be after our President is reelected and will care very little what you or I think once he and his treasury push for criminal TBTF banks to bailed out once again. Doctor Doom: the nickname for economist Nouriel Roubini: one of the relatively few outside the mainstream(part of the Got It Right (pdf) project) who predicted the last crash thinks 2013 is a perfect storm for another one which will be even worse and it makes sense.

Despite on theoretical fiscal policy limits with regard to the US, Roubini is absolutely right on the political deadlock with the coming crisis. We wasted our last crisis and that’s something Conservatives have not done whether we’re talking about the stagflation crisis of the 70s or 9/11. There won’t be as many political options this time to prop up the underlying economy in 2013 because Democrats have failed to change the Senate rules because most of them secretly like the way things work or don’t work in Washington. Sadly, if Republicans take over both houses again, they will change the Senate rules as they threatening to do in 2005 and 2006.

Anyway some might still want to scoff at Roubini’s prediction, but that will come back to bite them in the ass. Not even Roubini can predict the exact moment it will happen, but if one knows anything about the history of financial crashes, since the 80s when the 1933 banking reforms passed by FDR started slowly being dismantled, they started happening once again in a 5-7 year time-frame(and even closer than that if you count global stock crashes which count now more than ever since our markets turned dark with OTC derivatives and Information Asymmetry all around); some worse than others as the 2008 bust was on par with 1929 but you get the idea.

• Black Monday (1987)
• Black Wednesday (1992)
• Asian financial crisis (1997)
• Mini-crash (1997)
• Dot-com bubble(2000)
• Economic effects arising from the September 11 attacks (2001)
• Stock market downturn of (2002)
• United States bear market of (2007)
• Global financial crisis (2008)
• European sovereign-debt crisis (2010)