Tag: Austerity

By NY Brit Expat

An incident at dinner in Italy during my vacation there and the subsequent discussion has driven me to prioritise this piece. Following a wonderful dinner at a local restaurant, one man decided that it was time for us to listen to his misogyny on women’s reproductive rights. I knew he was saying offensive things as the two English speakers at the table refused to translate what he was saying. Upon my insistence, he tried to speak in English, but what he was saying was so offensive I refused to believe he was saying it. I turned to my husband and the other English speaking friend and they shook their heads yes, that is what he was saying. This man argued that women have to the right to choice but if they get pregnant with a child they do not want, they must be forced to carry the child to term and to give it up for adoption. Those that know me would not be surprised at my angry response in which I spoke of women having the right of property in their own body, spoke of bodily autonomy and reminded him that we were not incubators, but human beings. I concluded by calling him a misogynist and telling him that this was not an opinion but hate speech.

Abortion has been legal in Italy since 1978 when Law 194 was passed. While not a perfect law, it was won after intense struggle by the women’s movement. This law not only guaranteed access to abortion, but access  to reproductive health care, contraception, and a whole range of rights for women and these were tied into public health provision. Like in the US (and this has been a failing in both countries), the conscientious objector clause has led to a decrease in the numbers of medical professionals willing to carry out the procedure on religious grounds (and in the US due to pressure from anti-abortion activists). So to hear someone (who is not religious) babbling this crap at me following dinner was way too much. So, who ruined dinner? Was it him or me?

This incident highlighted something that has become extremely obvious and this applies both to women’s rights and to racism. The days when someone who held these offensive positions knew to keep their mouths shut is long gone; instead they pose hate speech as opinion and demand their right to preach it.  Our response must be swift and strong so that these troglodytes are driven back to the primordial soup from which they have barely crawled out from.

In a follow-up discussion on the way to the car park, I told my English speaking friend what just passed the British parliament as part of the Welfare Bill. I told him that the Tories are changing the nature of the social welfare state which covered all women (child-tax credits, child benefits) to only cover the poor and working class. And then I told him about the limits to benefits only to 2 children in the future. I explained that the former made it easier to eliminate benefits totally (why should taxpayers take care of the working class – employed and unemployed — after all?). I explained the latter policy was a form of eugenics and was a neo-Malthusian policy. While he agreed with the former (he is a mainstream neoclassical after all), he was horrified at the latter (maybe because he has 5 children and has benefited from receiving benefits in several countries to help with covering the costs for all his children).

When women talk about reproductive rights and justice they are not only speaking about women’s rights to not have children. This is an essential part of reproductive rights: the right to choose not to have children, to have access to birth contraceptives abortion and voluntary sterilisation. But we are also speaking of the right of women to have children and to determine when and how many. This right has been most often denied to working class women, disabled women and to women of colour. Sterilisation abuse and forced usage of birth control against working class women, disabled women and women of colour is part of a long-term agenda of eugenics and neo-Malthusianism.

Wealthier white women fought for the right to not have children and to choose when they had them and to demand sterilisation without the consent of their husbands. Eugenics law that promoted the “betterment of the human race” by forcing wealthier white women to have children also led to laws that demanded the use of birth control to access welfare benefits and forced sterilisation for working class women. These laws have been the tools of choice against working class women, women of colour and disabled women and have been used to prevent their choosing to have children and to limit the numbers that they had. In the US, to this day, eugenics laws are still on the books to be used against disabled women; Buck vs Bell (1927) in which the Supreme Court ruled that compulsory sterilisation of the unfit did not violate the Due Process Clause of the US constitution.  This endorsement of negative eugenics has not been repealed and still stands as US law. So to say that to leave things of the past in the past doesn’t really hold up as these things of the past tend to revive. After all, patriarchy is still strong and these arguments are not only a position of patriarchy but of the bourgeoisie that does not feel the need to humour women in their bizarre beliefs that they, not the family, not the church and not the state control their own bodies.

All that is left for Greece is to eat worms and it still would not satisfy Kaiser Merkel. #ThisIsACoup

A list of draconian new austerity demands handed to the Greek government in Brussels Sunday ignited a global backlash against Germany, German Prime Minister Angela Merkel and finance minister, Wolfgang Schaeuble.

#ThisIsACoup became the top trending hashtag on Twitter worldwide – and is #1 in Germany and Greece.

The tag was attached to tens of thousands of angry comments denouncing Germany’s aggressive demands that the Greek parliament pass new severe austerity laws within days to raise taxes, privatize public assets and cut back on pensions. [..]

Here are the EU proposals that outraged many around the globe:

1. Streamlining the VAT

2. Broadening the tax base

3. Sustainability of pension system

4. Adopt a code of civil procedure

5. Safeguarding of legal independence of ELSAT – the statistic office

6. Full implementation of spending cuts

7. Meet bank recovery and resolution directive

8. Privatize electricity transmission grid

9. Take decisive action on non-performing loans

10. Ensure independence of privatization body TAIPED

11. De-Politicize the Greek administration

12. Return of the Troika t0 Athens (the paper calls them the institutions)

Those are the demands that must be approved by Wednesday. The only thing they forgot to ask for is resignation of the prime minister, his cabinet and the Greek parliament.

From Ian Welsh

Basically the Greeks offered the EU everything they had asked for before and then some, but the EU won’t take it, they want their pound of flesh for being embarrassed by the referendum.

I get that Syriza and some Greeks don’t want Grexit, and will do virtually anything to avoid it, but I’m hoping (probably vainly) that there might be some depths to which they will not sink, some abasement they will not endure, some calamity they will not inflict upon the weakest and poorest in their own society.

Probably not. Not quite sure why I still have faith in humanity to ever do the right thing when any other option exists.

“OK, now that you’re crawling, down on your belly!”

Worms.

On Sunday Greek voters went to the polls to vote on a simple referendum on a bail out deal proposed by the country’s international creditors, which demanded new austerity measures in return for emergency funds. A simple yes or no. The voters gave a resounding NO to the deal.

The win for the “no” camp constituted a major victory for Greek Prime Minister Alexis Tspiras, who had campaigned heavily against the deal put forward by the European Central Bank, the International Monetary Fund and the European Commission. But it also raised uncertainty about the country’s financial future and its place in the eurozone.

“Even in the most difficult circumstances, democracy can’t be blackmailed — it is a dominant value and the way forward,” Tsipras tweeted on Sunday night, adding that Greece intends to restart negotiations with Europe next week.

A final tally of votes indicated that 61.31 percent of voters decided against the bailout deal. More than 60 percent of Greeks participated in the vote, well over the 40 percent turnout needed for the referendum to be valid.

Needless to say the responses to the vote and PM Tspiras’ decision to attempt to negotiate better terms cams fast and furious. First, Greece’s radical and outspoken Finance Minister Yanis Varoufakis resigned, stating that he had been made aware that his “style” was considered disruptive:

Mr. Varoufakis, an academic with no political experience before he joined the leftist Tsipras government, had consistently argued that Greece desperately needed debt relief more than anything else. While that view was shared by many economists, he quickly became a lightning rod among Greece’s creditors for his aggressive negotiating style and heated language. Before the referendum vote, he had publicly accused the creditors of “terrorism” against his country.

With Mr. Varoufakis gone, Greece’s eurozone creditors may be more willing to continue negotiations on a further aid package. His departure, apparently at the urging of Mr. Tsipras, could be seen as a concession to the sensibilities of other eurozone leaders. But the next few days could determine whether the gulf between Greece and its creditors is now too wide to bridge.

You can read his resignation statement here. He has been replaced by Euclid Tsakalotos, another academic economist, but not as vocal as Mr. Varoufakis and, apparently, more acceptable to Eurogroup participants.

Next came the markets’ reactions, not drastic but not good, either:

Global stock markets mostly dropped on Monday but did not plunge, as investors reacted with muted dismay to the results of the Greek referendum and showed nervousness about steep declines in China’s stock market over the past three weeks. [..]

At midday in New York, stocks were just below break-even. The Dow Jones industrial average was down 0.2 percent, while the Standard & Poor’s 500-stock index was off 0.3 percent.

The euro ticked down 0.4 percent to $1.1033.

Oil prices also fell on Monday, as traders placed bets that recent events could lead to slower global economic activity and weaker demand. [..]

In Asia on Monday, the Shanghai market jumped sharply in early trading as the Chinese government poured money into brokerage firms to help them and their customers buy shares. The market leapt 7.8 percent at the start, but it surrendered half of those gains in the first 10 minutes of trading and closed 2.4 percent higher. The smaller Shenzhen stock market also started strongly but fell 2.7 percent by the end of trading.

And the vote has only served to harden German Chancellor Angela Merkel’s stand:

The German government signaled a tough line towards Greece on Monday, saying it saw no basis for new bailout negotiations and insisting it was up to Athens to move swiftly if it wanted to preserve its place in the euro zone.

With opinion towards Greece hardening in Germany’s ruling coalition following the landslide rejection of European bailout terms in a Sunday referendum, the government indirectly raised the prospect of a Greek exit from the currency bloc.

Chancellor Angela Merkel’s spokesman said it was up to Athens to act so that it could remain in the currency bloc, and Vice Chancellor Sigmar Gabriel went further by saying the Greek government needed to improve on its previous proposals. [..]

Pressed on what concessions Berlin might be willing to make to Tsipras, a finance ministry spokesman dismissed the idea of a debt restructuring sought by Athens and favored by the International Monetary Fund (IMF).

Economic and political pundits responded as well:

Thomas Piketty: Germany Shouldn’t Be Telling Greece To Repay Debt

Thomas Piketty isn’t mincing words when it comes to the Greek debt crisis.

In an interview with German newspaper Die Ziet last month (and translated recently by business analyst Gavin Schalliol), the leading French economist pummeled Germany for its hypocrisy in demanding debt repayment from Greece. [..]

Greece on Sunday voted a resounding “no” on a bailout plan proposed by its creditors, making its continued membership in the eurozone more tenuous. German Chancellor Angela Merkel and French President Francois Hollande will hold an emergency summit on Tuesday to discuss the crisis.

But Piketty, who penned the blockbuster 2013 book on income inequality Capital in the Twenty-First Century, slammed conservatives who favor the economic austerity measures Germany and France are demanding of Greece, saying they demonstrate a “shocking ignorance” of European history.

“Look at the history of national debt: Great Britain, Germany, and France were all once in the situation of today’s Greece, and in fact had been far more indebted,” Piketty said. “The first lesson that we can take from the history of government debt is that we are not facing a brand new problem.”

Germany, Piketty continued, has “no standing” to lecture other nations about debt repayment, having never paid back its own debts after both World Wars (pdf).

Nobel Prize winning economist and New York Times columnist, Paul Krugman, also “cheered” the vote:

The truth is that Europe’s self-styled technocrats are like medieval doctors who insisted on bleeding their patients – and when their treatment made the patients sicker, demanded even more bleeding. A “yes” vote in Greece would have condemned the country to years more of suffering under policies that haven’t worked and in fact, given the arithmetic, can’t work: austerity probably shrinks the economy faster than it reduces debt, so that all the suffering serves no purpose. The landslide victory of the “no” side offers at least a chance for an escape from this trap.

Renowned dissident Noam Chomsky spoke with [Democracy Now! ]’s Amy Goodman back in March aboutGreece and Spain the “savage response” to taking on austerity calling it a “class war.”

The “what next” is still very unknown. From Yves Smith at naked capitalism

After the momentous “No” vote in support of the Greek ruling coalition Greece’s lenders and most important, the Eurozone leaders of the countries that have made 60% of Greece’s outstanding loans, are officially still figuring out what to do. Merkel is going to Paris to confer with Hollande today. The Eurogroup has set a meeting for tomorrow at 1:00 PM

However, despite the responses of media outlets and many pundits that the Eurocrats will have to beeat a retreat and offer Greece concessions, it’s not clear that this event strengthens the Greek government’s hand with its counterparties. Remember, Tsipras enjoyed popularity ratings of as high as 80% and has always retained majority support in polls. And it’s all too easy to forget that “the creditors” are not Merkel, Hollande, Lagarde and Draghi. The biggest group of “creditors” are taxpayers of the 18 other countries of the Eurozone. The ugly design of the Eurozone means that the sort of relief that Greece wants most, a reduction in the face amount of its debt (as opposed to the sort of reduction they’ve gotten, which is in economic value, via reductions in interest rates and extensions of maturities) puts the interest of those voters directly at odds with those in Greece. Our understanding is that a reduction in principal amount, under the perverse budgetary and accounting rules of the Eurozone, would result in those losses showing up as losses for budget purposes, now. They would need to be funded by increased taxes. Thus a reduction in austerity for Greece, via a debt writeoff, simply transfers austerity from Greece to other countries. It’s not hard to see why they won’t go for that. And Eurozone rules require unanimous decisions.

Even though the ruling coalition had said it wanted to restart negotiations immediately upon getting a “no” vote, the lenders have asked Greece to send a new proposal, apparently deeming the one it submitted on June 30 to be out of date. It’s doubtful anything will happen before the Eurogroup meeting tomorrow.

The Greeks have said enough! Hope has defeated fear and SYRIZA has won the election and have beaten New Democracy and the fear-mongers, as expected.  This is a major victory for anti-austerity forces which could change the economic and political landscapes.

However, they did not win an outright majority (they were short 2 seats) and were forced into coalition with a right-wing, nationalist (pro-Greek Orthodox) anti-austerity party, the Independent Greeks (referred to as ANEL from now on).  

Irrespective of this, we do have quite a lot to celebrate! The election of SYRIZA is a shot directly across the bow of neoliberalism and its flagship of ideas, aka as the austerity project. The European ruling class (which includes mainstream political leaders) are a wee bit shaken especially Germany.  Whether or not the Troika is forced to negotiate the debt successfully, this is a victory and it is forcing the ruling class in Europe to take stock over whether austerity (and destroying the working class) is more important than the EU project. The stakes are literally that high!  

Look out! The ghost of Huey Long has taken over for all three of Dickens’ spirits and is haunting the Corporate Democrats. How else to explain the recent conversions of the darling of Goldman Sachs’ and Robert Rubin’s Hamilton Project, the Crown family of General Dynamics and Penny Pritzger of the Hyatt fortune suddenly getting all populist and proposing a free community college education for one and all?

President Obama said Thursday that he would propose a government program to make community college tuition-free for millions of students, an ambitious plan that would expand educational opportunities across the United States. …

The proposal would cover half-time and full-time students who maintain a 2.5 grade point average – about a C-plus – and who “make steady progress toward completing a program,” White House officials said. It would apply to colleges that offered credit toward a four-year degree or occupational-training programs that award degrees in high-demand fields. The federal government would cover three-quarters of the average cost of community college for those students, and states that choose to participate would cover the remainder. If all states participate, the administration estimates, the program could cover as many as nine million students, saving them each an average of $3,800 a year.

Mr. Obama will include the program, which would need congressional approval, in his budget for the coming year, his advisers said, and detail it in his State of the Union address Jan. 20. …

White House officials acknowledged in a conference call with reporters that the program was unlikely to win quick approval in Congress.

Huey has also been haunting congressional corporate Democrats, too! Programs and ideas that liberals/progressives and decent people have been politely pushing the Democrats to get behind are suddenly popping up all over! The “Robin Hood” (Tobin) Tax, incentives to raise worker pay, tripling the child-care tax credits – a program that for once redistributes wealth downwards!

All this from an administration that created a budget sequestration process and stood by with its hands in its pockets as a bipartisan deal was cut which rewarded the military industrial complex while failing to address drastic cuts in food stamp benefits and did not extend unemployment benefits for workers displaced by the banksters’ (whom Obama continues to protect) looting of the economy.The same administration that has been aching to cut old folk’s social security to reward his rich buddies. Corporate Democrats came out of the woodwork to support Obama in his attack on poor old folks with rhetoric that would make Frank Luntz wonder which party he works for:

Congressional Democrats, led by House Minority Leader Nancy Pelosi (Calif.), signaled greater willingness on Wednesday to cut Social Security benefits … Pelosi told reporters on Capitol Hill that a cut proposed by President Barack Obama in the fiscal cliff negotiations would in fact “strengthen” the program, echoing the claims often made by Republicans about entitlement programs they want to slash. …

The cut involves swapping out the traditional method for calculating cost of living increases, based on the current standard for measuring inflation, for something called a chained CPI, or chained Consumer Price Index.

The cuts would start small, but wind up costing beneficiaries thousands of dollars over time … Pelosi wrapped both her arms around it Wednesday, insisting she does not regard it as a “cut.”

Huey must have clapped these guys upside the head with a spectral clue-by-four!

There has been a lot of talk, now that the elections are over and the legislature has fallen into the hands of Republicans about what this will mean for President Obama’s agenda and the Democratic agenda generally. This election season my inbox was full of Democratic politicians begging for money to foreclose the possibility of voters choosing the wrong party at the polls, yours probably was, too.

A persistent theme in these begging emails that I was getting was that the (evil) obstructionist Republicans have gummed up our system of government and the Democrats (the good guys) can’t get anything done in order to enact Mr. Obama’s agenda.

Looking at the accomplishments of Mr. Obama and the governing elites, this narrative, of course, is utter rubbish. The government is working. Mr. Obama and the Republicans have been cooperating all along. Great bipartisan advances and accomplishments are indeed being made.

So, what can we expect of this new aggregation of powers? Probably more of what it created before. Hence, let us review the accomplishments that these allegedly competing forces have created together…

Mr. Obama’s bipartisan accomplishments

---

Two-tiered justice system, rewards for criminal bankers

Mr. Obama’s bipartisan efforts have kept the criminal banksters who crashed and looted our economy free, under-regulated, still dominating the political system, even larger than they were when they were “too big to fail” and paying the largest bonuses since their criminal activities crashed the economy. Mr. Obama’s efforts to prosecute financial frauds were even wimpier and less effective that George W. Bush’s.  Mr. Obama’s much ballyhooed relief program for homeowners injured by the criminal bankster’s behavior failed miserably; some Democrats claim that Obama sabotaged the program behind the scenes. The result of Mr. Obama’s efforts has been to fuel a new era of Wall Street wealth while screwing average citizens:

They didn’t just blow up finance, they oversaw the swiftest transfer of wealth to the very top the world has ever seen. They screwed workers out of their jobs, they screwed homeowners out of their houses, they screwed retirees out of their pensions, and they screwed municipalities out of their revenues and assets.

Financiers are forcing schools, parks, pools, fire departments, senior citizen centers, and libraries to shut down. They are forcing national governments to auction off their cultural heritage to the highest bidder. Everything must go in firesales at prices rigged by twenty-something traders at the biggest and most corrupt institutions the world has ever known.

And since they’ve bought the politicians, the policy-makers, and the courts, no one will stop it.

Austerity, benefitting the 1% at the expense of the rest of us

Mr. Obama’s bipartisan efforts (his budgets, the sequester) have imposed the austerity that enriches the 1% at the expense of the rest of us.  On Mr. Obama’s watch, taxes on the rich have decreased, shifting their burden onto everybody else. Mr. Obama was so intent on cutting social security benefits for older folks that the Progressive Change Committee characterized his dropping a particularly nasty proposal to cut benefits by miscalculating the effect of inflation on beneficiaries from his 2015 budget, a “huge progressive victory.” It’s a sad day when progressives consider it a “huge victory” when the depredations of an allegedly, progressive, liberal president and his partners in congress are diminished. You’d think that progressives would get excited about, um, progress rather than lack of regress. The economy delivered to us by Mr. Obama and his Republican colleagues took a lot of wrangling, but as one analyst put it:

Obama is the first President in post-war history (and maybe all of history) whose economy gave more money to the top 10% than the entire value of all productivity gains in his Presidency.  Even George W. Bush didn’t manage that.

Now that’s an accomplishment!

Not to be forgotten as well are Mr. Obama’s actions to crack down on those outraged by the bankster criminals and the impunity Mr. Obama created for those that crashed our economy.

Most probably people have heard of the bizarre investigative journalism by The Mail on Sunday in an article which appeared on Easter Sunday (of all days in the year). The Mail on Sunday sent in a reporter, a wannabe Jimmy Olsen, to investigate provision of food by food-banks in Britain and that reporter literally took food out of the mouths of the hungry in order to prove some point. This provoked a backlash on social media that demonstrated that the neoliberal agenda seems to not have sunk too deeply in the hearts and minds of the British people. That is a relief and quite honestly more than I expected, given the constant barrage in the newspapers and on the news on telly that has never questioned the logic (forget the morality) of welfare caps and cuts to welfare benefits.

ht: my sister Mia for comments and editing on this piece

This year, I was invited to speak at an international women’s day event by the sisters of the Cardiff Feminist Network as part of a series of actions which included a Take Back the Night march, a pro-choice rally and then an event in a park in which there was poetry and various speakers addressing a number of topics including feminism, violence against women, the oppression of Palestinian women, and my talk on the impact of austerity on women in Britain. There was food, a wonderful audience of committed feminists taking place in a public park where in effect since there was no license or permission, the group had taken use of public land to have a celebration of International Women’s Day. My talk was kindly taped by a friend and comrade, Nick Hughes, who then posted it on facebook and on then youtube.

The talk was long, not because it was planned that way; but one person who was supposed to speak was late and the food was not ready to be served. So, since I carry around so much information with me when I am planning to speak, I was able to talk for almost a half hour.

So today’s anti-capitalist meetup will actually be like a meetup. That is, we will have a speaker (me), my talk (minus the spontaneous bad jokes and righteous anger) will be here to read. Then we can actually have a discussion on the topic, since the speaker is right here. This was supposed to go up on the 16th of March, but was preempted by the deaths of Bob Crow and Tony Benn which needed to be commemorated. The issues addressed in my piece, unfortunately, are still extremely relevant.

A two year budget deal was reached yesterday with congressional leaders announcing the deal that would to replace $63 billion in sequester cuts, a very small part of the $180 billion in cuts that will occur over the next two years. The deal will restore defense cuts by funding from a tax on airline travel and cuts to federal pensions. The budget does not include extension of unemployment funds to the millions of workers who are about to lose their benefits the end of December. There will be no changes to Medicare or Social Security but none of the tax loop holes were closed.

As Ezra Klein puts it:

Whether this deal can be a model for future deals is an open question. The core principle of this deal is that Democrats didn’t have to touch entitlements and Republicans didn’t have to touch taxes. But a lot of the policies that made that possible got used up in this deal. It’s not clear that another deal like this would work in 2016.

DSWright at FDL News Desk notes:

The Republicans got everything they wanted. They get more cuts while none of their friends in the defense industry get hurt – actually they even got to do some damage to the federal pension system. All that while avoiding another shutdown that killed their poll numbers before the 2014 elections. Christmas came early for the GOP.

The Democratic Party, on the other hand, sold out its own base to help Republicans maintain power. Why? Who knows? The only thing that is clear is this is an awful deal for majority of Americans.

Once again, the majority of Americans get screwed by their elected representatives.  

Not you at the Stars Hollow Gazette. You know who.

Well it seems this continuing debacle every 3 months has ceased, for now. However, I really can’t get over this pathetic celebration over the really low bar involved with regard to avoiding what I call a political default on the public debt. This is the same embarrassing type of celebration that ensued in 2011. We need to get real. Despite the government being opened up again, there’s nothing to celebrate. We’ve already lost. After all, the debt ceiling was a precious gift Obama bestowed onto John Boehner in the 2010 tax deal as he put his full faith in Speaker John Boehner hands, as he took the full faith and credit of the United States hostage.

Of course, it was a deal struck between both of them to put who they called the “extremists” of both their parties in check, for a grand bargain like in 1983 when Tip O’Neil and Ronald Reagan cut social security. President Obama and Speaker Boehner weren’t fooling everyone, though. Just those involved in their hyper deluded, hyper partisan, claptrap. To some of us, this was entirely predictable and preventable. Now people are suffering because some people, blinded by their hyper-loyal partisan illusions, couldn’t or didn’t want to see what was there. Maybe their lack of sight reveals they don’t really care? It doesn’t matter though. This will continue to be what we go through when some of this crap continues again in 4 months in February, regardless.

This austerity government will reopen at sequester levels of funding; a sequester I predicted would be born out by the stupid Super Committee from the super austerity Budget Control Act of 2011, which I saw was inevitable since the 2010 tax deal led to the first, now ongoing, debt ceiling debacle; a miniature crisis to crisis government with no plans to invest in its citizens’ future. Anything else is possible though, from government shutdowns over the false prospect of defunding Obamacare, to any austerian Senator or Congressman using the threat of default for whatever demands they want.

We, the so called professional left as the White House derisively called us, warned about this. Anyone who denied this can either apologize now or forever restrain from speaking about matters regarding politics, civics, political deals, and the debt ceiling. We told all of you back in 2011 around this same time when that debacle was coming to its end – until this one and the next one 4 months down the line – that this was no victory.