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economy

Pictured are today’s harvest of nails from the streets around my neighborhood. Actually, one of them turned out to be a bobby pin. I’ve been picking up nails since I was 10. Originally, I was looking for coins. I don’t know how many thousands of flat tires I’ve saved my neighbors over the years.

nails I picked up

OK, one of them is a bobby pin

Long ago, there was a religious TV show called “The Christophers.” Here’s their theme song:

“O if everyone would light just one little candle…

What a bright world this would be!”

Little Things Are Nice, but Big Things Matter

I don’t recommend going around doing nice little things. I wouldn’t even pick up the nails if I weren’t exercising to begin with. If you give $5 to a panhandler, does that mean it’s OK to support drone warfare? If you go to church on Sunday, can you rip off your employees all week?

Everybody’s heard the quote about giving a man a fish and teaching him to catch his own fish. Here’s a similar quote:

“When I feed the poor, they call me a saint.

When I ask why the poor have no food, they call me a communist.”  — Dom Helder Camara, Archbishop of Recife, Brazil

Billionaires Do Charity

Billionaires believe in charity. They even donate to it, although proportionally much less than poor people do. Billionaires also believe in government handouts for the rich and austerity for the poor. It’s easy to get confused when we’re talking about little things.

Americans need a change. A big change, not just a little one. That’s what we should be working on.

–Gene Lantz

Some would say that World War III is overdue. If one looks at the basic reasons for the first two world wars, one might get pretty worried about the present situation. bombbang

There have been wars as long as one organization of people has had something worth stealing by another organization. Even some of our classically peaceful, nature loving Native Americans raided one another from time to time.

Capitalism Changed Everything

But capitalism and the modern capitalist nation changed everything, including the nature of war. By 1914, war wasn’t about one-upping another nation, exacting revenge, or even acquiring territory. The first world war came about because the industrialized nations had economically taken over the entire world. The only way any of them could continue to expand was at the expense of the others.

And capitalist economies have to expand. The simple way to explain that may not be theoretically correct, but it’s easy to understand: To make a profit, the capitalist has to sell his product for more than it cost to make it. The workers within his own economy only have what he paid them, which was less than his necessary selling/buying price. So his economy has to grow, somewhere, somehow.

For a better, more exact explanation of imperialism under capitalism, read Marx or, even better, Lenin.

World War II may seem more complicated because of the way they maneuvered to destroy the Soviet Union, but it had essentially the same cause. What did Hitler want? More “room,” Liebensraum!

Americans Have Had It Easy

Most Americans alive today grew up in a very strange period of history. The United States came out of World War II with almost the only productive power on the planet. American capitalists literally dominated everything. Here at home, it seemed like a natural state of affairs, but it wasn’t. It was a weird period, and it distorted our point of view.

By the early 1970s, the world economic situation was different. American cars no longer dominated the streets of the world. Volkswagens and Hondas appeared in our home towns. People laughed at first.

But President Nixon’s administration re-organized the world monetary system to deal with the new situation. The United States continued to dominate and continues today. But when the U.S. capitalists lost their war in Vietnam, a trend of change was apparent to more people.

 

Where Will They Expand To Now?

Today, the U.S. continues to dominate economically and militarily. But, on the economic side, others are approaching. The Chinese have the second largest economy. The combined Europeans and the Japanese are in competition, too. Where will any of those big capitalist economies expand?

The U.S. is bombing like crazy to hang onto their oil-rich countries. The Chinese are actually building new islands in the South China sea. There are no answers to the questions there. Each of the three major capitalist centers are building trade associations to try to improve their economic clout in opposition to the others.

So, Why No Third World War?

So far, the competing capitalists have only attacked their own workers. In driving down production costs and raising profits, they have slammed us with austerity programs and hit themselves with generous tax giveaways. In theory, they can only go so far with that. Once they have reduced their working class to slavery and starvation, no further profits can be made.

Sane people will never start a Third World War. The first and second world wars took place before the capitalist governments had the ability to destroy the world. Even if the economic conditions that underlay the first and second world wars were met, no rational system would start a third.

The problem is, capitalism isn’t a rational system.

–Gene Lantz

 

 

 

 

When the union’s inspiration

Through the workers blood shall run

There can be no power greater

Anywhere beneath the sun.

Yet what force on Earth is weaker

Than the feeble strength of one?

Our union makes us strong!

–Ralph Chaplin of the Industrial Workers of the World

I wrote a pretty long article today about the Teamster retirees who are gathering support for their pension fight. Over the past years, the Teamsters have often been there for other people who needed help. Like some other unions, though, they almost never ask for help for themselves. With the bosses intent on stomping us to death, that has to change.

ibtcrowd2

Teamster retirees hear about the major threat to their pensions

The worldwide competitive race among major capitalist nations has not boiled over into a third world war yet, thank goodness. But they are taking extremely severe measures against their own workers as they fight over which nation, which specific employer, can force the lowest production costs out of their labor force. America, even under a fairly liberal capitalist president, is no exception.

One way of lowering production costs looks relatively easy to the employers: robbing their retirees. The Greek austerity plans, one after another, always feature cuts for seniors. U.S. Speaker of the House Paul Ryan has put forward several budgets. All of them contain major cuts for seniors. States and local governments generally pick on their pension plans when they want more money.

Most politicians are afraid to raise taxes because the big money campaign contributors are demanding more tax cuts. Those same employers seeking tax cuts from government are also demanding lower production costs (wages and benefits) from their employees. All for the same reason: international competition. It’s not necessarily the people; it’s the system!

Two parts of the population are being hit the hardest:

  1. Children, who are being robbed of their hopes of free public education
  2. Seniors, who get cuts in health care, pensions, and Social Security

There’s only one reason why those two segments of the population are being hit hardest: because the bosses consider them the most vulnerable. The least capable of fighting back. Their side can win by throwing big money into the political system, hiring professional liars to confuse all the issues, and ultimately through force.

Our side can win with solidarity!

–Gene Lantz

Around the nation, people are celebrating the 2016 Verizon strike. I don’t usually celebrate until the affected members have voted on the contract offer, but there are important lessons to be learned here. Americans can use strikes to win, not just a little bit but everything!

Here’s what “Gawker” had to say on its web site about Verizon:

“Strikes have always worked. Strikes still work. Pro-business forces like to deride unions as socialist parasites, but strikes are, in a sense, one of the purest free market actions that workers can take: the refusal to sell

verizon strikers

The public is asked to join in — and they should!

labor at a price that is deemed too low. This has the effect of raising the price of labor. Though “Economics 101″ idiots like to pretend that the free market will always magically produce the perfect wage for every job, the reality is that working people-people with less money-are always at a disadvantage when it comes to asserting the leverage necessary to raise their own wages, because they can’t afford to stop working and lose a paycheck. This is the biggest hurdle that strikes have to clear. It’s hard for working people to leave work, demanding better wages and working conditions. It’s a gamble. But it tends to pay off.

‘As much as workers need wages, businesses need labor even more. The free market has not raised your wages in decades. The government has not raised your wages in decades. You need to raise your own wages. Organize. Then strike. It’s always good to be reminded that it works.”

Working People Have Few Weapons

The ability to withhold our labor, either through strikes or slowdowns, is the strongest thing we can do. Nearly every tactic in our arsenal is just a way to lead up to a strike or a slowdown. We need to think seriously about how we can use our main power.

Do Strikes “Still Work?”

A lot of people might disagree that “strikes still work.” If you look at the Bureau of Labor Statistics on strikes, you can see that strike activity dropped tremendously in 1982, and there have been fewer than 100 big strikes in the entire nation in the years since then. In 2015, there were only 12. In 2009, when the recession was at its worst, there were only 5! In 1952, there were 470!

What Happened in 1982?

Reagan happened in 1982. The spokesperson for General Electric and corporate America in general dragged out an obscure court ruling, NLRB v. Mackay Radio, that cut away most of our legal right to strike in America. He used it to “permanently replace” the Flight Controllers. Unions have to think long and hard about conducting an economic strike now, because the company can hire scabs and keep them permanently.

The Reagan presidency signaled the end of any hope of labor-management partnership, even though many labor leaders clung to their illusions. Government was clearly on the side of business, and both of them were against American workers!

Why Bring It Up?

There are more than one kind of strike. I don’t mean the legal difference between an “economic” strike and an “unfair labor practices” strike. I mean that there are strikes against companies and there are strikes against governments.

Strikes Against Governments?

The idea of a political strike to change government policy is well known in Europe, and it used to be known here in America. The great worldwide strike of May 1, 1886, is celebrated all over the planet, and it was centered here, in Chicago! It was a political strike to get government to set an 8-hour day. The “student moratoriums” and the “Chicano Moratorium” of the 1960s were political strikes.

We usually treat the Industrial Workers of the World (IWW) as part of our illustrious union history. But they weren’t exactly unionists. They were revolutionaries.

The IWW intended to organize all workers, or at least a large enough percentage of workers, to be able to shut the entire nation down. They weren’t planning it so they could get a raise or a 10-minute coffee break. They intended to overcome capitalism and institute socialism in America. If only the workers had known about it, they might have won; but the bosses found out, too.

Economic and Political Strikes Both Deserve Our Support

In a way, every little strike action in America is a dress rehearsal for something much more profound. The Communications Workers at Verizon asked for, and got, a lot of public support and participation. The Wal-Mart workers strain to get everybody’s help, as do other groups from time to time.

Participating in a strike for better wages and participating in a strike for government change — both — are good training for everyone. They result in a better organized, better informed, more capable, stronger progressive movement.

Let’s Daydream Together about Political Strikes

Suppose someone was able to unite the progressive Americans who really want fundamental change. Suppose they had the technical know-how and the access to internet servers to organize us by the millions. That’s not as crazy as it sounds. Bernie Sanders just did it this year!

Suppose those millions agreed on some fundamental demand. It might be raising the minimum wage to $15/hour. It might be cutting working hours. It might be saving the planet. Anyway, suppose they came to agree on something.

Then suppose they set a date, for example May 1, 2017. Then suppose they said that date would begin a “virtual” strike. Nobody would actually stop working, but people would declare their willingness to participate. We’d learn from that, every time we did it.

Eventually, suppose somebody examined the data from the “virtual” tactic, found it very good, and then actually called for a do-or-die nationwide political strike until the goal had been met. You see where I’m going with this?

–Gene Lantz

 

 

 

me-realjobsrealwages

The official report says only 38,000 jobs were added to the U.S. economy in May. Economists say 200,000/month are needed. At the same time, the unemployment rate dropped because so many unemployed people answered “no” when they were asked if they were looking for a job. They call that “dropping out of the labor force.” The participation rate has been really low since 2008.

If they counted the people too discouraged to look for a job and the millions of people forced against their will to hold part-time jobs, the unemployment rate would be 10-11% and it would make a lot more sense.

Shorten the working hours

The obvious solution to the ravages of unemployment is to shorten working hours. One could write an entire history of the United States just on the issue of the fight to decrease the hours of work. The fight reached its zenith with the worldwide political strike of May 1, 1886, which focused on Chicago. They hanged the leaders of the 8 hour day movement.

Unions in the Congress of Industrial Organizations (CIO) demanded lower working hours throughout their history. “30 for 40 with no cut in pay” was their demand, and they kept it up until they disappeared into the AFL-CIO in 1955. Since then, unions have asked for more wages and more benefits, but not for shorter hours. I don’t know why.

Our big partial victory was the 1938 Fair Labor Standards Act, which mandated that employers pay time-and-a-half when hourly workers put in more than 40 hours in a week. They have been fighting over that act since then. The current battle is because President Obama wants more workers to qualify for overtime pay, and the bosses, of course, don’t. They’d like to hang the President, too.

–Gene Lantz