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Monthly Archives: December 2017

2018 stretches before us like a blank canvas. Economists and Republican politicians are painting a gorgeous festival on it. Democrats are using only one color: black.

fat-famine

Predictions Take the Safe Road

Nearly all predictions are just linear projections of trends currently underway. For example, American production has been rising slightly so the prediction is that it will rise even more. Unemployment has been low, so the prediction is that it will stay low. I saw one prediction saying that wages will go up in 2018, even though they have been going down since the 1970s.

For A Few, Everything Looks Great!

The disastrous “Tax and Jobs Bill” that just passed the Congress shows what is intended. It is a gigantic giveaway to the rich at the long-term expense of the poor.  This is not a new trend. It has been going on clearly since American domination of the world began to diminish in the late 1970s. It is reasonable safe, therefore, to predict that the rich will continue to get much richer and the poor much poorer in 2018. Inequality will worsen.

Using the same linear projection approach, one would have to conclude that democracy will continue to ebb and the environment will get even less hospitable.

Politics May Get Messy

The last poll before the Republicans passed their big giveaway, conducted by NBC News, said that only 24% of the American people supported the legislation. Republicans say that people will start liking it as soon as they see tiny improvements in their paychecks beginning in January. Democrats say that support for “trickle down” will fall even further as people see what was actually in the bill.

As 2018 begins, Republicans and their only legislative accomplishment are extremely unpopular. President Trump has the lowest ratings in history. Does that mean that they are going to take a mighty hit in the November elections? Are the Democrats going to take charge and bring back the rosy Obama days?

We should be skeptical. Republicans are backed by an awful lot of money, and money wins elections. Also, they hold state power. Who is to say how they might use their money and their power before November?

They might, for example, start another war. They’ve been talking up war with North Korea for months and they have the ability to start such a war just at the time when they consider it most propitious for their election prospects. It worked for both Bush Presidents, who had low ratings before invading Iraq and high ratings afterward. Sure, lots of people would die, but Republicans might well benefit at the polls!

Before deciding that the Democrats will surely make a comeback in November, remember that they have problems of their own. They robbed Bernie Sanders of the 2016 presidential nomination and, by now, everybody knows it. Deputy Democratic Party  Chairman Keith Ellison is touring America right now to try to bring all the Bernies back into the fold, but it’s safe to say that some of them won’t come. The Democrats would have to be really sloppy to not make some gains in 2018, but will they actually turn things around?

In summary, the safe set of expectations for 2018 is that it will be great for the great, but not for us.

What to Hope For

A lot of really good  things could happen in 2018. Low unemployment and high consciousness are requisites for an organizing boom. If unions and the other types of organizations presently underway aggressively take advantage of the situation, we could see some real organizational strength develop for working people. Then (and only then) we might expect to see a reversal in the steady decline in our American wages, benefits, and living standards.

There must be half a dozen organizations expecting to take over the Democratic Party, end all corruption, end its dedication to capitalism, and make it a workers’ party. There are others who believe they can create a workers party — perhaps from the Greens or from the Working Families Party — or from scratch. Conditions for a workers party have never been better because of the high educational levels and consciousness of the American people.

The progressive movement is a giant in America. The Women’s March on the day after Trump took power put more people on the streets than ever before in American history. They are planning another one in January 2018.

Even though very few Americans even know what a political strike is, they are becoming common in other parts of the world. With modern communications and the high level of consciousness among people, especially among young people, we may see major changes in America that come from outside the electoral system.

Expect the worst. Hope for and work for the best!

–Gene Lantz

I’m still on KNON radio, 89.3FM in Dallas, at 9 AM Central Time every Saturday. If you want to know what I really think, check out http://lilleskole.us

 

 

Book Review:

Schrecker, Ellen: Many Are the Crimes. McCarthyism in America. Little Brown and Company, Boston, 1998.

whitebread

I remember the 1950s like white bread: bland, not nourishing, and an important part of every meal. Books, movies, and all things cultural talked about “the American way” as if it were the best of all worlds and the best ever created or imagined. Socialism was never mentioned, except in a pejorative way in movies like “I Married a Communist” or “I Was a Communist for the FBI!” We did not smoke dope in Muscogee, or anywhere else as far as I knew. We kept our hair short and our minds shorter.

It has taken many years for me to realize that the wasteland of the 1950s was created deliberately. Too bad I didn’t have Ellen Schrecker’s book in 1953! It would have saved me a lot of personal anguish.

communist-dead

Schrecker details important aspects of the anti-communist crusade from World War I to modern times. Except for a brief period during World War II, when the United States and the Soviet Union were wary allies, the crusade was relentless.

Schrecker is an academic, so don’t expect her to take sides. She’s just reporting what happened. Academics are afraid to take sides. However, the sheer immensity of the government-run effort to destroy civil rights, civil liberties, and any kind of resistance speaks for itself.

The author reminds us often that she doesn’t sympathize with the communists. She stands on the high ground of impartiality, and, in a way, that makes the facts about the  FBI and the other zealots even stronger.

Schrecker doesn’t shrink from pointing out that a great many of the tactics implemented by the FBI and taken up by other government entities were illegal. A great deal of the testimony against communists and liberal thinkers consisted of FBI-solicited lies. J. Edgar Hoover is hardly the only guilty party. Schrecker doesn’t spare the intellectuals and liberals who all-too-easily jumped on the anti-communist bandwagon. She also doesn’t spare the right-wing union officials who cashed in when, with government help, they drove the militants out of the American union movement.

I’m particularly interested in what happened to the American unions after 1947, when the anti-communist and anti-union Taft-Hartley law was passed. Unions resisted it at first, but here’s what Schrecker says on page 380: “…by the early 1950s, most of the nation’s unions had adjusted to the law and abandoned their struggle against it. It was a serious mistake. Taft-Hartley created an unfavorable legal environment that forced the entire labor movement onto the defensive. Unable to employ the aggressive organizing tactics that had been successful in the 1930s, unions found it difficult to expand. As a result, by the 1970s, when the postwar boom began to falter and the well-paid blue-collar jobs of the members began to disappear, labor was unable to mobilize either the political or the economic clout to protect its earlier gains. It’s numbers dropped… Instead of reaching beyond its traditional white male constituency in the heavy industry and skilled trades of the Northeast, Midwest, and West, the labor movement turned inward and raided its own left wing.”

On page 382: “Its rupture with the left hastened its transformation from a movement to a bureaucracy…. Once the left-wingers were gone, organized labor lost its dynamism….”

The saddest of the tragedies throughout this long, detailed book comes on the last page when the author considers “Can it happen again?” “…the process through which McCarthyism came to dominate American politics is infinitely replicable.” In less academic language: Yes, it can happen again.

–Gene Lantz

I’m still on KNON radio at 9 AM Central Time every Saturday. If you’re interested in what I really think, look at http://lilleskole.us.

 

 

 

It is absolutely wonderful that the Communications Workers of America are buying books and teaching classes on “Runaway Inequality” by Les Leopold. It stirs a lot of thinking.

runawayinequalitybook

The core argument is that something has been seriously wrong in America since the mid 1970s, when wages stopped rising at a rate similar to the increasing productivity. Productivity is the amount of wealth that one average worker creates in one average working hour.

productivity-wages

As the graph shows clearly, wages and productivity seemed to rise together from the late 1940s to the mid-1970s, then productivity continued rising with the same upward slope, but wages flattened out. Profits rose, but wages didn’t. The change, Les Leopold says, came about because of deliberate policy changes. The book is full of other graphs showing the policies that changed, the resulting inequality, and the amazing effects of this incredible rise in inequality. Leopold then concludes by saying that ordinary Americans must band together and change those policies. In other words, wage-earners have to do what the bosses have been doing. It’s a “must read” book, and the classes (I’ve taken them twice) are inspiring!

There are further questions

  1. Is the period 1947-2016 a representative period of history, or is it unusual?
  2. Is the problem local or systemic?;
  3. Given the situation described in the book, is there really a solution for wage-earners?

What period of economic history is “normal?”

The entire book and all its conclusions come from the hypothesis that something went wrong in the 1970s. I have my doubts. The unusual period in American history was not 1974-2016, as Leopold suggests, but 1947-1974, the first part of the graph. In other words, there is nothing unusual about wages being suppressed in a capitalist economy. The unusual period was 1947-1974.

Take a quick look at how unusual was the post-war world:

  • Europe and Asian were bombed flat. American had virtually no competitors in the capitalist world
  • American unions were far stronger than in any time in history
  • The United States set the terms for all economic transactions in the capitalist world
  • The United States had almost all of the world’s gold

Then look at how things changed: By 1974, German and Japanese automobiles were flooding the world. President Nixon had given up America’s control over gold. Unionism had peaked around 1957 and was clearly slipping. The Chinese were having tea with Nixon and had broken up their alliance with the Soviet Union. Economic competition between nations was getting back to “normal.” What every nation had to do, to compete, was lower their costs. Their costs are our wages and benefits.

Is the problem local or systemic?

Our problems derive from the system we live in. American working families are having pretty much the same problems that other capitalist nations are facing. We have probably lost more than the families in other nations since the mid 1970s, but we had more to lose. The lords of American industry and finance have been able to hold on to their hegemony in the world only by sacrificing our wages and benefits.

Even worse, the long-term process of robbing working families entails destroying our democracy. The end of World War II was a triumph of democracy, and nowhere was democracy stronger than here, in the land of the winners. Several of Les Leopold’s graphs show how democracy is diminished. A very striking one is the graph showing that the United States has more people incarcerated than any nation of any size in the world! Today, many people are saying that we live under a plutocracy and that democracy is dead and gone.

It isn’t true. The absence of democracy is fascism, and we don’t have fascism in America. Even in 1947, our democracy was not complete. It was partial. Since the mid-1970s, our democracy has faded, but not disappeared. If the process continues as it is going now, it would be fair to say that fascism is the logical outcome. But it hasn’t happened yet.

Is there a solution?

Given the system we live in as described in “Runaway Inequality,” are we likely to be able to reverse the policies that have brought disaster for working families since the mid 1970s? No. What happened since 1974 is not unusual, it’s part of the ordinary process of world capitalist economics.

If there is a solution for American working families. it will come from a different system.

Gene Lantz

I’m still on KNON radio, 89.3FM, every Saturday at 9AM Central Time. If you’re interested in what I really think, check out http://lilleskole.us