Capitalism turning oceans into toxic plastic cesspools

8 Feb

For 21st century capitalism the more disposable the better. Ocean life and human health be damned.

According to a recent Ellen MacArthur Foundation study, the world’s oceans are set to have more plastic than fish by 2050. At the current rate of production and disposal the net weight of plastic in the oceans will be greater than that of fish in a little over three decades.

There are currently 150 million tonnes of plastic debris floating in the world’s oceans. Most of it takes centuries to break down. Thousands of large animals – such as turtles and birds – die every year from indigestible plastic debris in the ocean. Millions of other sea creatures suffer when they consume plastic.

The Canada-US Great Lakes – the largest freshwater ecosystem in the world – have also accumulated large amounts of plastic. A study released in December concluded that almost 22 million pounds of plastic debris are dumped into the Great Lakes annually. Microplastics in the lakes “act like sponges for certain pollutants and are easily ingested by aquatic organisms, including fish and shellfish, which may ultimately end up on our plates.”

During the second half of the 20th century plastic production rose 20 fold and it’s on pace to double over the next two decades. More plastic was produced during the first decade of the 21st century than in all of the 20th.

Approximately half of plastic is for single use. Some 70 billion plastic bottlesand 1 trillion plastic bags are produced every year globally. The first disposable plastic pop bottle was produced in 1975 and the first plastic grocery bag was introduced a few years earlier.

Before wreaking havoc on ocean fauna, plastics also harm human health. In 2014 Mother Jones published an expose titled “Are any plastics safe?” It noted, “almost all commercially available plastics that were tested leached synthetic estrogens—even when they weren’t exposed to conditions known to unlock potentially harmful chemicals, such as the heat of a microwave, the steam of a dishwasher, or the sun’s ultraviolet rays.” The Mother Jones story draws a parallel between the plastic and tobacco industries.

The Canadian Environmental Protection Act provides the federal government with a tool to restrict toxic substances while Environment Canada operates a scientific review to test for possible harm. Yet few plastic products have been outlawed.

Controversy over the use of BPA (bisphenol A) in baby bottles and some toys prompted the federal government to ban use of this chemical in baby bottles but BPA is still used in other plastics. Similarly, in 2010 the government announced it was banning Polybrominated diphenyl ethers (PBDEs) flame retardants, which have been linked to cancer and other health ailments, but it didn’t outlaw the toxins from new plastic consumer items such as TVs until December and continues to allow PBDEs to be used in manufacturing items.

The toxins in plastics should be better regulated. Plastics can also be made less damaging by producing them from waste products and improving their decomposition. Additionally, measures to promote recycling are necessary. But, as Ian Angus points out, recycling is often a way for the industry to divert “attention away from the production of throwaway plastics to individual consumer behavior—the ‘solutions’ they promote involve cleaning up or recycling products that never should have been made in the first place.”

To that end activists have pressed universities to stop selling plastic bottles and for cities to restrict free plastic bags. While helpful, these efforts are overwhelmed by an economic system enthralled to wasteful consumption.

Based on externalizing costs and privatizing profits, 21st-century capitalism is turning our seas into a plastic blob.

Yves Engler

Capitalism’s connection to racism

6 Feb

Which comes first, racism or the systemic need for racism?

In all the reams of printed and digital discussion about Donald Trump’s (attempted) ban on Muslims from seven countries, the murder of six worshippers at a Quebec City mosque and Islamophobia in general, few commentators have mentioned the economic roots of racism.

But the truth is ideas have always been needed to justify treating other people badly in the competition for wealth and power. As long as there have been battles over resources people have objectified and demeaned the “other” to provide ideological cover and to motivate their side to victory.

This has likely gone on for a very, very long time, but it was not until the modern, capitalist era that the notion of “race” was invented. Capitalism was taking over the world and needed an ideology to explain and justify the enslavement of Africans, the pillage of Asia and the stealing of indigenous people’s lands across the globe, amongst other crimes against humanity. The absurd idea of “race” and the ideology of racism were invented to serve the economic interests of European capitalists.

Like religion, which often served to justify various forms of minority rule and imposed a common understanding of “the way things are” to enable a few to rule over ever larger numbers of people, the ideology of racism took on various cultural and institutional forms.

So, for example, in the land that is now called Canada, where there was little economic need for slavery the institutions and culture of racism were much different than in the parts of the Americas where plantation economies were dominant. Anti-aboriginal racism, needed to justify stealing First Nations’ land and control over resources, was, and is, most common.

Even within the various slave societies the culture and institutions of racism could vary widely depending on the exact economic and social situation. This can be illustrated by contrasting racism in the United States, with its large poor white European population and the Caribbean islands with their overwhelmingly African slave majorities. In the latter societies the legal system and cultural practices gave higher status to “part white” people while in the former, one’s legal and social status was black unless you could “pass” as completely white. The economy in the United States didn’t need “whiter” people to function as foremen or various other higher status positions — it had enough Europeans to perform those roles.

If racism and the forms it took were shaped by economic interests, what can we learn from this history that is relevant to current Islamophobia and even the rise of Donald Trump?

First, that there is a fundamental connection between western capitalists’ desire/need to profit from Middle Eastern resources and Islamophobia (and other forms of anti-Arab racism). The ongoing war over control of the land of Palestine is obviously a key source of this racism, as is evidenced by Jewish/Christian Zionists’ (a critical Trump electoral base) fanatical support for both growing Israel settlements and anti-Muslim ideology.

Second, that to be an effective anti-racist one must also be prepared to change our economy, and especially its addiction to war, so that it no longer requires the sort of “us and them” fight over resources that produces racism.

Third, one must understand that many supporters of the current economic system believe that to be anti-racist is also to be anti-capitalist. Nationalists such as Trump, Le Pen, Farage etc., are consciously racist precisely because they believe the us/them way of looking at the world must be encouraged to keep their national capitalism strong. And, one needs to add, to keep working class opposition at a minimum through dividing and conquering.

People who desire a better, inclusive, democratic, racism-free world can achieve their goals, but only if they understand the forces that are working against them.

Gary Engler

Devil capitalism sending us to hell

29 Apr

Okay, here’s the proposition — you can have a good job, decent pay, lots of overtime, but only if you give me your grandchildren or maybe your great-grandchildren.

Would you make this deal with the devil?

This is pretty much the choice currently offered workers by the captains of the carbon extraction, transportation and burning industries.

In fact, in a more general sense, it seems to be the choice being forced upon many governments around the world by the devil, which has taken the form of our current economic system.

Capitalism is asking us to choose between jobs and the future livability of our planet. Capitalism tells us it makes sense to flood some of the best food growing land in B.C. and build a dam to provide electricity for Alberta’s tar sands; capitalism says build more pipelines across B.C. and allow hundreds more oil tankers every year to sail through pristine waters; capitalism doesn’t care that more carbon extraction will guarantee our planet is cooked.

Capitalism, especially the current neoliberal version, says profitability should be the sole criteria by which we decide what gets built, what services are provided and who works. If there’s a profit to be made, let’s invest in it. Don’t do it if there’s no profit to be made. The ‘invisible hand’ of the market will solve all our problems.

Profits bring jobs, the capitalist devil whispers in our ears. Jobs! So you can overcome or avoid the misery of unemployment. Jobs! So you won’t fall behind on your mortgage, your credit card payments or your student loan. Jobs! So you will be able to buy ever more stuff that you don’t really need but somehow those great commercials convince you otherwise.

“Think about the jobs!” the devil/capitalism repeats over and over again. When brave critics ask: “What about the consequences to our environment?” the devil/capitalism answers: “Don’t listen to those Leap-ing people. They’re radicals. They’re tree-hugging, moonbeam-chasing hippies. They’re Indians. They’re anti-development. They’re socialists. They’re from downtown Toronto. Think about the jobs!”

So what do we do? Listen to the devil and build more pipelines, tar sands plants, fracked oil wells, housing that requires ever more carbon-spewing automobiles and tell ourselves that we are not responsible for what happens to our grandchildren?

Or do we cast out the devil? Tell the beast we do not have to choose between jobs and the environment, that in fact there will be more jobs in a sustainable energy-based economy. Proclaim loudly that, if forced to choose between capitalism and the environment, we will choose the environment every glorious day on this wondrous planet.

The truth is the devil’s way leads to hell on earth. Building our economy solely on capitalist greed for profit has placed us all, lobster-like, into a pot of hot water that is only a few degrees away from cooking our great-grandchildren. Our most critical task right now is figuring out a way of getting out of the pot and turning down the heat.

The good news is the devil’s way is not the only way, despite the constant media bombardment proclaiming that to be so. Humankind has followed the devil/capitalism path for only a relatively short time. We have tens of thousands of years of history proving that we can organize our lives around values other than greed for profit. Even today, in the midst of the most capitalist-dominated period ever, most of our lives, outside of paid work, is based on love, caring, sharing, solidarity, respect and doing what’s best for our collective future. This is called family and community.

If we can just come to the understanding that an economic and political system can also be based on these ‘community values’ we would have a path to building a viable alternative to the mess we are in.

The devil promotes the idea that we have no alternative to the way things are, but if all the people who care about their grandchildren come together to talk about a better way we can have jobs, lower the temperature and save our planet for future generations.

 

There will be no jobs on a cooked planet

15 Apr

What is it with union and political ‘leaders’ who treat their members as if they were children not old enough to deal with reality?

Across Canada for the past three days the right wing media has been attacking the NDP for passing a resolution agreeing to “discuss” over the next two years the Leap Manifesto, a common sense document that calls for taking global warming seriously, actually doing what is necessary to prevent our planet from being cooked and trying to create a better world while we attempt to ensure our collective survival.

Of course condemnations from the Tyrannosaurus Rex Murphys (a right wing commentator who likes to use big words) of the media were to be expected, but the surprise has been the animated defence of the status quo by supposedly social democratic union leaders and politicians.

“The government of Alberta repudiates the sections of that document that address energy infrastructure,” said Rachel Notley, the NDP Premier of a province that has been hard hit by the fall in the price of oil. “These ideas will never form any part of policy. They are naive. They are ill-informed. They are tone deaf.”

Notley particularly objected to the lines in the Manifesto that oppose any new oil pipelines.

“You can’t just come out with a statement that says we are going to eliminate all the use of fossil fuels, there is going to be a major reduction by this date and we’re going to be fossil fuel-free in 2050,” Jerry Dias, the president of Unifor, Canada’s largest private sector union was quoted as saying by Huffington Post. “All I know is that when I left the [NDP] convention, I hopped in a taxi, then I hopped on a plane, and then I hopped in a taxi to get home. And I would suggest so did pretty well everybody else. I don’t believe that there is going to be solar panels propelling 747s anytime in the future.”

As well as justifying his carbon-heavy lifestyle, Dias seemed particularly incensed by the notion that anyone would tell his auto plant or refinery members that their jobs are at risk because of global warming.

Duh?

Do you understand the threat our planet faces or not? Are you in favour of doing what is necessary to save the lives of our grandchildren or not? (‘Yes, but not if it means I must get a new job or give up my car,’ is a chickenshit answer.)

As a retired Unifor member and someone who first worked on an Alberta NDP election campaign in 1971, I am embarrassed by what Dias and Notley are quoted as saying.

There will be no jobs if our planet is cooked. In fact I heard Dias say almost those exact words at a union meeting not long ago. The people who live in both Calgary and Edmonton will be at serious risk if all the glaciers in the Rockies disappear. Notley understands this. So, why are they pandering to the right wing climate change deniers and the media pundits who have always hated the NDP and unions?

Because the Leap Manifesto states the obvious: To prevent our planet from being cooked we need to stop burning carbon, which means stop building pipelines, which means abandoning car-dominated transport, which means refineries and auto plants will be shut down. And that scares people, especially the ones who work in these industries.

But real leadership means confronting the right wing media attacks head on, not scurrying around talking out of both sides of your mouth.

Real leadership means saying: Corporate capitalism burned too much carbon, causing global warming and threatening our planet’s future. We need to stop it. Significant change will be required. Some people will be forced to get new jobs, but we will advocate for retraining and other support.

As a former leader of a union local that represents newspaper workers I know how hard it is to tell members their jobs are disappearing. But real leadership requires telling the truth, discussing that reality with members and coming up with collective solutions.

Ignoring the truth will never set you free.

Gary Engler

Why was a Palestinian toddler burned to death?

22 Aug

By Nizar Visram

News coming out of the occupied Palestine on Aug, 8, 2015 said that Saad Dawabsheh, the father of a Palestinian toddler Ali who was killed in a firebombing of his home a week ago, also died from wounds he sustained in the incident.

Early in the morning of July 31, Israeli settlers hurled a Molotov cocktail into a window of Dawabsheh’s home in the Duma village in occupied West Bank. His 18-month-old son, Ali was burned to death in the arson attack, while his four-year-old son Ahmad, and his wife, Riham were seriously injured and remain in critical condition.

The arsonists left inscriptions on the wall of the house, saying: “Long live the Messiah” and “Revenge” on the wall of the house. Israeli settlers attacking Palestinian homes, churches and mosques characteristically use this “price tag” tactic. (Palestinian toddler burned to death)

Ali Dawabsheh is not the first Palestinian child to be burnt to death. Last year, another baby named Ali, son of Mohammad Deif, was also burnt alive after an Israeli airstrike on the house. Also, sixteen-year-old Mohamed Abu Khdeir was beaten tortured and burnt alive by a group of Israeli extremists in July 2014.

Little Ali is thus not different from over 500 Palestinians children killed in Israel’s last summer invasion on Gaza, which killed nearly 2,200 Palestinians, mostly civilians.  The Dawabsheh family home, which was completely burnt, was not different from the 20,000 Gaza homes which, according to the UN, were destroyed during the Israeli carnage in Gaza.

The Israeli regime’s illegal settlers have carried out 11,000 assaults against Palestinian residents and their properties across the occupied West Bank since January 2015. According to an Israeli human rights group, Yesh Din, 85.3% of police investigations into Palestinian complaints are discarded without actions being taken. It is all part of Israeli occupation policy, with numerous crimes going unpunished.

In fact, the Israeli armed forces responded to protests against the torching of the family’s home by killing another Palestinian child, 15-year-old Laith. They also killed 16-year old Mohammed who was at another demonstration inside Gaza.

The brutal assassination of Ali is a direct consequence of decades of impunity by the Israeli Government towards settler terrorism. It is the direct outcome of Israel’s culture of hate and violence, of Israeli policies that create an environment allowing the illegal setters to commit murder and terror while protecting them from any accountability.

We cannot separate the barbaric attack on Dawabsheh family from the illegal settlement recently approved by the Israeli government, a government which represents an Israeli national coalition for occupation.

Israeli settlements built on Palestinian land are illegal under international law, yet Netanyahu’s government is committed to building even more. The latest planned expansion was announced by Netanyahu on 29 July, when he authorised the construction of a further 300 settlement buildings. On the following day, deputy foreign minister Tzipi Hotovely pledged that the Israeli government would carry out the building of yet more illegal Israeli settlements on Palestinian land

Settlement expansion is bound to increase the numbers of extremist Israeli settlers who take up arms and run amok across the West Bank, without fear of apprehension and prosecution. According to B’Tselem statistics, in the past three years, Israeli settlers have torched nine Palestinian homes. A Molotov cocktail was also thrown at a Palestinian taxi, severely burning the family on board. No one was charged in any of these cases.

Following the killing of the toddler Ali, condemnations poured in from various sources. Among the first to ‘mourn’ was Israeli prime minister Benjamin Netanyahu who “vowed to bring the perpetrators to justice”.

He said, “I am shocked by the murder of Ali Dawabsheh; this is a reprehensible and horrific act of terrorism in every respect.”

Netanyahu even made a phone call to Palestine Authority’s President Abbas, condemning the incident and pledging “full investigation”

The corporate media fail to expose the two-facedness of such lamentation. Palestinian children have always been killed by Israeli forces, while successive Israeli governments have been able to get away with its ever-expanding settlements and other war crimes.

Netanyahu describes this latest act of primitive violence against a baby as an “act of terror” while it is he who ordered the mass murder of babies and children in Gaza. His government has created a culture of extremism in its constant policy to demonize and brutalize the Palestinian people.

Whipping up racism and hatred during Israel’s election campaign, Netanyahu described Palestinian citizens of Israel as a “demographic threat.” Indeed for an average Israeli the very word Palestinian is synonymous with inferior being.

Netanyahu and his bedfellows who rushed in denouncing the Duma attack as “terrorism” have well-documented background of engaging in incitement against Palestinians. Some have even killed Palestinians themselves and boasted about it.

Netanyahu is the originator of last year’s 51-day attack on Gaza that killed 551 Palestinian children in Gaza. Yet he reacted to the settler attack in Duma with a statement that his government is “united in strong opposition to such deplorable and awful acts.”

This is the same man who, following the discovery of the bodies of three kidnapped Israeli teens one year ago, issued a call for blood vengeance, essentially lighting the match that burned alive 16-year-old Palestinian Muhammad Abu Khudair.

Then there is Netanyahu’s education minister Naftali Bennett, who said, “Arson against a house in Duma and the murder of a baby is a disgusting act of terror.”

This is the same Bennett who famously bragged, “I’ve killed lots of Arabs in my life – and there’s no problem with that.”

He rose to prominence after triggering Israel’s April 1996 massacre of more than 100 civilians and UN peacekeepers at a UN base in Lebanon, during that year’s Israeli invasion. Over half of those killed in the attack were children.

The same Bennett praised the Israeli massacre of the four Baker boys on the beach in Gaza last summer. Talking to the CNN, he accused Palestinians of “conducting massive self-genocide to make Israel look bad.”

Then you have Netanyahu’s ‘defense’ minister Moshe Yaalon describing the massacre of baby Ali as “horrible terror attacks that we cannot allow” and promising to “pursue the murderers until we bring them to justice.”

It is the same Yaalon who declared that Israel would not hesitate to kill Palestinian and Lebanese civilians including children, if it felt it had to, in any future war between Israel and its neighbors.

During his spell as Israeli army chief of staff, he likened Palestinians to a cancerous threat that can only be eliminated by “applying chemotherapy.”

Such outbursts are common among Israeli figures. After approving a call last June for Palestinian mothers to be slaughtered in their beds to prevent them from giving birth to “little snakes,” Israeli lawmaker Ayelet Shaked was rewarded by being appointed ‘justice’ minister.

Eli Ben-Dahan, the settler rabbi in occupied Jerusalem who decreed that “(Palestinians) are beasts, they are not human,” is Netanyahu’s deputy ‘defense’ minister. He is now in charge of the “civil administration,” the military body that rules Palestinians in the occupied West Bank.

It is not surprising that rabbis like Ben-Dahan are mostly silent about the killing of baby Ali. After all, they inspire an extreme messianic version of Judaism that energizes settler violence.

Two of the most infamous rabbis are Yitzhak Shapira and Yosef Elitzur, who in 2009 wrote Torat Hamelech (The King’s Torah), a guidebook on when it is permissible to kill non-Jews.

They claim that Jewish law permits “killing babies if it is clear that they will grow up to harm us, and in such a situation they may be harmed deliberately.”

Shapira and Elitzur run a hardline Jewish religious school in the settlement of Yitzhar, home to some of the most violent settlers, not far from the village of Duma.

Last year, Dov Lior, a leading West Bank settler rabbi who endorsed Torat Hamelech, issued his own ruling that the complete “destruction of Gaza” was permissible.

“At a time of war, the nation under attack is allowed to punish the enemy population with measures it finds suitable, such as blocking supplies or electricity, as well as shelling the entire area … to take crushing deterring steps to exterminate the enemy,” Lior wrote.

The murder of Ali Dawabsheh should thus be regarded within the context of Israeli society where Palestinian babies are routinely called a “demographic threat,” and where many Israelis ecstatically rejoice their slaughter.

Such society cannot claim innocence and cannot be “shocked” when settlers torch to death a Palestinian toddler.

Today, more than ever, it is important for all who care about justice to declare that we are all Palestinians.

Nizar Visram is Tanzanian independent writer, born in Zanzibar and currently in Ottawa. He retired as senior lecturer in Development Studies and is reachable at: nizar1941@gmail.com

End capitalism, build a green economy

19 Apr

For capital in Canada and the United States, the sudden drop in oil prices is a disaster. For humankind it is a signal that fossil fuel use must decline.

Thirty years ago scientists pointed out that the burning of fossil fuels was causing global warming. To prevent catastrophic climate change, carbon dioxide levels in the atmosphere would have to be kept below 350 parts per million, a level that could be maintained only if three-quarters of the known reserves of conventional fossil fuels were left in the ground.

Corporate capitalism in Canada responded by investing tens of billions in tar sands, fracking, and oil pipelines. U.S. capital invested even more in off-shore drilling and fracking. Governments provided fossil fuel corporations with tax breaks and subsidies. By 2014 atmospheric carbon dioxide levels over North America on some days exceeded 400 parts per million.

In the 1980s when science first drew attention to global warming, it was to be expected that some would claim this was merely an idea. Now, the hypothesis of human-caused climate change has been tested and measured. Increases in global temperature continue to be historically unprecedented.

As predicted, glaciers and polar ice caps are shrinking. Sea levels are rising. Droughts and floods have become more frequent. Storms, rainfall, and hurricanes have become more severe. Carbon dioxide raining down from the atmosphere increases ocean acidity; crustaceans from coral reefs to microorganisms are losing the capacity to reproduce, undermining the ocean ecosystems on which all sea life depend.

Climate change deniers may have been eased to the fringes, but corporate capitalism continues to ignore the impact of carbon emissions. For capital, profits from the exploration, development, and transportation of coal, oil, and natural gas are just too important. Profits in the automobile industry, air travel, agribusiness, and global trade depend on plentiful fossil fuels. Major financial institutions are heavily invested, directly and indirectly, in fossil fuels. In a time when most global markets for consumer and producer goods are stagnant and low interest rates have reduced the base return on capital, capital generally is dependent on profits from fossil fuels.

Unwilling to reduce dependence on fossil fuels, corporate interests in the United States and Canada insist that green energy is not a realistic alternative. They’re wrong, and at this point they probably know it.

To undermine green energy expansion, they have persuaded federal governments to impose punitive tariffs on solar panels made abroad. They have persuaded states, counties, and utilities to deny local solar producers access to grids. Meanwhile, in China, India, Africa, Brazil, and even in some U.S. states, wind and solar power is a growing source of electricity. Electricity from wind power will double by the end of this decade. With present technology solar power alone could replace all the electricity now provided by fossil fuels at no additional cost. As investments on wind and solar increase, the technology will advance, further reducing the cost and efficiency of green power.

To drive a wedge between industrial workers and environmentalists, corporate shills present green power as touchy-feely, less industrial, less masculine than energy from fossil fuels. Yes, solar and wind are cutting-edge technologies. Many highly educated professional and technical specialists will be required in basic research, development, and administration. Still, most employees will be engaged in manufacturing, transportation, installation, and maintenance — traditional blue-collar occupations that can be equally done by men and women. Work will be widely dispersed in all regions. By boosting employment, income, and markets, the massive expenditures required to convert to green energy will end the austerity promoted by capitalist interests. Employment and income will rise. Markets will revive.

The shift to green energy, motivated by human well-being, will have to be pushed from below. Although capitalist interests now have a death grip on political agendas, people acting together for the common good can counter capitalist influence. We are the vast majority. Industrial and service workers, professionals and technical specialists, students, the unemployed, and pensioners all share a common interest in the continuation of the environments on which humankind depends. No more than 5 per cent depend on marginal increases in profits.

Strikes, protests, boycotts, and civil disobedience can help speed up the shift away from fossil fuels. Community-owned utilities, cooperatives, and local capital can take initiatives. Electoral mobilizations can push federal, provincial, and state governments to shift to green energy and to provide funding for public transportation. Cities could be reconfigured to make it practical for people to walk and cycle to employment, services, entertainment, and commerce. Publicly supported local food production could replace dependence on transnational corporate imports.

The funding required could in part come from excise taxes on fossil fuels, perhaps $50 a barrel, equivalent to the recent drop in the price of oil. Since capitalist profit is at the root of the problem, most of the revenues should come out of additional taxes on corporate income and private capital.

Al Engler

 

Oil industry crisis an opening for real change

3 Apr

For capital in Canada and the U.S. the sudden drop in oil prices is a disaster. For humankind it is a signal that fossil fuel use must decline.

Thirty years ago scientists pointed out that the burning of fossil fuels was causing global warming. To prevent catastrophic climate change, carbon dioxide levels in the atmosphere would have to be kept below 350 parts per million, a level that could be maintained only if three quarters of known reserves of conventional fossil fuels were left in the ground.

Corporate capitalism in Canada responded by investing tens of billions in tar sands, fracking, and oil pipelines. U.S. capital invested even more in off-shore drilling and fracking. Governments provided fossil fuel corporations with tax breaks and subsidies. By 2014 atmospheric carbon dioxide levels over North America on some days exceeded 400 parts per million.

In the 1980s when science first drew attention to global warming, it was to be expected that some would claim this was merely a theory. Now, the hypothesis of human-caused climate change has been tested and measured. Increases in global temperature continue to be historically unprecedented. As predicted, glaciers and polar ice caps are shrinking. Sea levels are rising. Droughts and floods have become more frequent. Storms, rainfall, hurricanes have become more severe. Carbon dioxide raining down from the atmosphere increase ocean acidity; crustaceans from coral reefs to micro organisms are losing the capacity to reproduce, undermining the ocean ecosystems on which all sea life depend.

Climate change skeptics may have been eased to the fringes, but corporate capitalism continues to ignore the impact of carbon emissions. For capital, profits from the exploration, development and transportation of coal, oil and natural gas are just too important. Profits in the automobile industry, air travel, agribusiness, and global trade depend on plentiful fossil fuels. Major financial institutions are heavily invested, directly and indirectly, in fossil fuels. In a time when most global markets for consumer and producer goods are stagnant and low interest rates have reduced the base return on capital, capital generally is dependent on profits from fossil fuels.

Unwilling to reduce dependence on fossil fuels, corporate interests in the U.S. and Canada insist that green energy is not a realistic alternative. To undermine expansion of green energy, they have persuaded federal governments to impose punitive tariffs on solar panels made abroad. They have persuaded states, counties, and utilities to deny local solar producers access to grids. Meanwhile, in China, India, Africa, Brazil, and even in some U.S. states wind and solar power is a growing source of electricity. Electricity from wind power will double by the end of this decade. With present technology solar power alone could replace all the electricity now provided by fossil fuels at no additional cost. As investments on wind and solar increase, the technology will advance, further reducing the cost and efficiency of green power.

To drive a wedge between industrial workers and environmentalists, corporate shills present green power as touchy feely, less industrial, less masculine than energy from fossil fuels. Yes, solar and wind are cutting-edge technologies. Many highly educated professional and technical specialists will be required in basic research, development and administration. Still, most employees will be engaged in manufacturing, transportation, installation and maintenance–traditional blue collar occupations that can be equally done by men and women. Work will be widely dispersed in all regions. By boosting employment, income, and markets, the massive expenditures required to convert to green energy would end the austerity promoted by capitalist interests. Employment and income will rise. Markets will revive.

The shift to green energy, motivated by human well-being, will have to be pushed from below. Although capitalist interests now have a death grip on political agendas, people acting together for the common good can counter capitalist influence. We are the vast majority. Industrial and service workers, professionals and technical specialists, students, the unemployed, pensioners all share a common interest in the continuation of the environments on which humankind depends. No more than five percent depend on marginal increases in profits.

Strikes, protests, boycotts, and civil disobedience can help speed up the shift away from fossil fuels. Community-owned utilities, cooperatives, and local capital can take initiatives. Electoral mobilizations can push federal, provincial, and state governments to shift to green energy and to provide funding for public transportation. Cities could be reconfigured to make it practical for people to walk and cycle to employment, services, entertainment and commerce. Publicly supported local food production could replace dependence on transnational corporate imports.

The funding required could in part come from excise taxes on fossil fuels, perhaps $50 a barrel, equivalent to the recent drop in the price of oil. Since capitalist profit is at the root of the problem, most of the revenues should come out of additional taxes on corporate income and private capital.

Al Engler

Raise taxes on capital and the rich

24 Feb

In the 1940s, following decades of booms, busts, unemployment, disorder, wars and destruction, rigid free market policies were abandoned. Governments began to deliberately act to maintain employment and market demand. This shift was identified with J.M. Keynes, a prominent British economist and government adviser who had made the case that classical economics was wrong. Depressions, he wrote, were not caused by a decline in the supply of capital but by a fall in demand caused by declining wages and rising unemployment.

During Keynesian times, until the late 1970s, economies and employment grew steadily. Democracy came to mean that governments had a responsibility to protect and advance the interests of common people. Keynesian policies, including increased access to higher education, public health care and income support were funded by taxes on those with the means to pay. The marginal tax rate on the highest income was 80 per cent. Taxes on corporate income were 50 per cent and higher.

Humankind now faces global crises. Widening disparities in income, opportunities and control are provoking disorders, militarism and wars. Emissions of carbon dioxide from fossil fuels threaten the climates on which human well-being depends. Private capital, focused on short-term profits, systemically aggravates these problems. Prevailing ideology is now aggressively hostile to government action. Tax cuts for corporations and the super rich have reduced the public funds required.

Since 1980 taxes paid by corporations and the rich have been methodically reduced. During Keynesian times, the richest one per cent got ten per cent of total income. The richest one percent now gets twice as much, twenty percent. Ten per cent of total income has been transferred from public revenues to private capital.

Neoconservatives like Margaret Thatcher and Ronald Reagan claimed that giving capitalists more money and freeing corporations to maximize profits would be generally beneficial, trickling down to the masses. Instead disparities widened. Tax cuts not only provided private capital with more funds to invest; it gave the super rich more money to manipulate political agendas. Regulations on corporate finance and industry were weakened. Union rights were curtailed. Corporations were freed to move capital to countries with lower taxes, and jobs to places with lower wages. Real wages fell. Unemployment rose.

With consumer markets stagnant, investors awash in funds turned to speculation in stocks, bonds, futures and real estate, to derivatives, index funds, credit default swaps and collateralized debt obligations. Capital markets became casinos, adding little to real production. Gains for a few came out of the losses of many others.

Meanwhile as taxes on capital were reduced, public deficits and debt increased. Concerned that capital would lose value, the rich demanded austerity. Although governments were more than willing to spend more on prisons, intrusive surveillance, militarism and war, social programs and infrastructure spending were frozen and cut. Public assets were privatized. Here in Canada, while courts were confirming rights of indigenous people, governments used deficits as an excuse to disregard Treaty obligations.

Meanwhile, carbon emissions from the burning of fossil fuels continued to rise. In 1995 countries meeting at the Kyoto Conference agreed to voluntarily reduce carbon emissions. Science had concluded that carbon dioxide levels had to be kept below 350 parts per million. But corporate capitalism preoccupied with profits from existing industry did not act. Declining public revenues and corporate opposition prevented government action.

By 2014 carbon dioxide levels exceeded 400 parts per million.  If green energy had replaced two percent of fossil fuel energy each year since 1995, as the Kyoto Accord proposed, carbon emissions would already have been reduced by half. Instead, corporate capitalism responded by spending hundreds of millions to deny that carbon dioxide emissions were a problem. Hundreds of billions were spent to develop, produce and transport more fossil fuels.

Everyone not blinded by capitalist dogma or the prospects of immense profits now knows that fossil fuel emissions are melting polar ice caps and glaciers, raising sea levels, flooding coastal communities, acidifying oceans, and generating more frequent and more destructive weather events.

Now that denying climate change is no longer credible, capital simply disregards the threat, claiming that there is no technologically realistic alternative to energy from fossil fuels. Yes, the technology to efficiently store and distribute alternate energy on the scale required has yet to be developed. But the needed technologies would already be available if solar, wind, wave and geothermal power had received the investments, tax breaks and subsidies provided for offshore drilling, fracking, tar sands and oil pipelines.

Technology is not the problem.  With relatively small expenditures Denmark in 2014 got 40 percent of its electricity from wind power. Renewable energy, mostly solar, is providing Germany with 25 percent of its electricity. Solar power is providing China, India, Brazil, and African countries with expanding shares of electricity.

Capitalism is the problem. So long as major shareholders and top corporate executives are entitled to make major economic decisions in their private interests, capitalist profits will continue to trump employment, labor income and public services. Environmental costs will continue to be externalized—passed off to communities and future generations. Replacing capitalist title with human entitlement begins with deliberately transferring income from private capital to the public.

In his Capital in the Twenty-First Century, Thomas Piketty makes the case that corporation taxes should return to 1950s levels. Marginal tax rates on personal incomes over $500,000 should be raised to 80 percent. He proposes an annual tax of 0.1 percent of private wealth over half a million dollars rising in steps perhaps to 2 percent on wealth over three or five million dollars.  Homes are already taxed annually.  Why should stocks, bonds, and other wealth be excluded?  Piketty adds a progressive estate tax on inheritances over one million dollars and a tax of 0.1 percent on financial transactions. He argues that more transparency in income records and better statistics gathering would make it practical for countries to cooperate in preventing income and wealth from being hidden in offshore accounts.

Of course, the super rich will aggressively object. But nearly everyone else would gain. Taxing capital could provide local governments with funds to reduce disparities and expand social services. Public spending on green infrastructure would provide more employment and increase market demand. Public spending to reconfigure cities could make it practical for people to live their daily lives without cars. Public spending on solar, wind, wave and geothermal power and public transit would reduce carbon emissions and generate more jobs.

Al Engler

Top 10 Ways to Save Ourselves From Global Warming

7 Oct

My fellow lobsters, we are being cooked.

I know some of you don’t believe it and others have come to the conclusion there is nothing we can do, but the simple truth is the gas has been turned on, the fire lit and the temperature is slowly rising. There is no significant disagreement amongst our lobster pot scientists about these basic facts. In fact the latest study argues the water is much hotter than previously thought. Our only way of avoiding the rolling boil is to come up with a plan to turn the gas off and then take the steps necessary to implement that strategy. But, as individuals we cannot claw our way to a solution. Lobsters of the world we must join together.

Here are 10 things we can do to start:

10. Read Naomi Klein’s new book This Changes Everything — Capitalism vs. the Climate. This is a great way to become informed about the problem and what to do about it. Klein offers a comprehensive, thoughtful, witty and sometimes personal analysis of how we can still save the planet, if enough people put their minds and bodies into the project. The book is an absolute must-read for every environmentalist and everyone who has ever challenged the status quo.

9. Help create and strengthen local food systems. Build and participate in self-sustaining regional economies. Demand governments get rid of “free trade” agreement language that prevents this or limits measures that would reduce global warming.

8. Escape the clutches of the private automobile. Walk, take public transit, ride a bike, join a car share and demand cities that thrive on human energy in a sustainable relationship with nature. Understand there is a better, healthier life waiting if we evolve beyond homo automotovis. Read Stop Signs — Cars and Capitalism on the Road to Economic, Social and Environmental Decay by Yves Engler and Bianca Mugyenyi, an entertaining and enlightening road trip through a car-crazy world.

7. Spread the word that human beings are part of nature and do not have dominion over it. Learn from aboriginal peoples around the world about our place in the environment.

6. Support alternative energy sources. We must quickly replace all carbon-based energy with alternatives, a project that is doable. The barrier is not technological but rather economic and political. The only reason burning fossil fuels is currently cheaper than wind, solar or geothermal is because the carbon-based fuel sector does not pay for the real cost of its emissions.

5. Assert the principle that polluters must pay for all the negative consequences of what they put into the environment. We must calculate the price of repairing the damage caused and add this to their cost of production. Not paying the true cost of production is, in effect, a subsidy. Ending that subsidy will leave most of the fossil fuel industry uneconomic.

4. Get off the consumption treadmill. Every time you think about acquiring more stuff or buying more services ask yourself these questions: Do we really need this? Is this good or bad for the environment? To answer these questions objectively we must understand and combat the marketing/advertising system that twists our emotions and desires to mould us into the sort of consumers that make the most profit for multinational corporations.

3. Elect and support governments that take global warming seriously. Without that we have little hope of success. To ensure that the governments we elect really do what is best for people and our planet rather than what is good for the rich and powerful, we must end the power of money to control politicians.

2. Work to change our current economic system, which is the ultimate source of the problem. We must construct an economy based on human need rather than capitalist greed. The foundation of this new economy must be an understanding that our most basic human need is a safe and healthy environment. To ensure that our economy works for the benefit of all it must be democratic and inclusive, rather than run by and for a wealthy minority.

1. Become part of a mass movement to make all of the above happen. We must come together to say no to any further expansion of carbon extraction. We must blockade the carbon industry into extinction. To succeed we must build a grand coalition of all those who are fighting for a better world. This means environmentalists finding common cause with the union movement, First Nations, poor people, poor nations, liberation movements, anti-capitalists, and with all those who do battle against the many forms of inequality.

Lobsters of the world unite, you have nothing to lose but the chains that keep you on the stove.

Gary Engler

Imagine a system better than capitalism

23 Sep

Is imagining a better economic/political system a necessary step in making it happen?

To answer this important question it is helpful to consider its antithesis: Is it possible that a different system could be built without people first imagining it?

Seems far-fetched, given that most everything humans build is first envisaged and then planned.

Unless, of course, one believes that “building” an economic system is beyond our capability because the economy is ordained by a supreme being or is simply part of nature, like life itself.

Given how our current crony capitalism is leading a warming, war-weary world to more income inequality and environmental devastation, our very survival depends on neither of these propositions being true. We’re cooked, literally, if the way things are is the way things will continue to be.

So, for those of us who believe human beings are in control of our own destiny, or at least the rules that govern our economy and politics, it is time to come together and imagine a better system, one that promotes environmental sustainability, equality and international cooperation.

The way to begin is by identifying the most critical issues we face then think about how our current system makes those problems worse or prevents us from dealing with them.

Environmental degradation (including global warming), war, inequality and the lack of sustainable development are four key problems the global community currently faces. What is the relationship between our current economic/political system and these critical issues?

It seems impossible to deny, at least for any reality-based thinker, that our current global capitalist economic/political system has created, and prevents us from fixing, the mess we are in.

Primarily this is due to the powerful private profit engine of capitalism, which in turn incentivizes the externalization/socialization of as many costs as possible. The owners of capital are driven to make ever greater profits — the system rewards those who do and punishes those who don’t — which of course leads the profit seeker to reduce costs in any way possible. To survive, capitalists must try to avoid paying for the negative consequences of whatever is the source of their profits, be it the instruments of war, environmental destruction, global warming, over-consumption or an unhealthy food system.

Protecting and maximizing profit gives capitalists an incentive to deny the ill effects of their products, to fund global warming deniers and to promote war. The potential for governments to pass laws that may negatively affect profits is an incentive for capitalists to do whatever it takes to make sure the political system works in their narrow, immediate interests. This is the source of what some defenders of an abstract, idealized capitalism call cronyism, but which is, in fact, a logical outcome of a system that promotes greed and private profit.

Our current reality is an economic/political arrangement that is run by and for the richest people in the world. Effectively it is an oligarchical system of one dollar, one vote; certainly not a democracy based on one person, one vote.

Given where the status quo is leading us and the best estimates of scientists about how quickly we will get there, we need to change and fast.

But what sort of economic/political system can be imagined and then built that will save us from global warming, other forms of environmental disaster and growing inequality; one that can come about relatively peacefully so that weapons of mass destruction are turned into ploughshares rather than destroy the planet?

For change to happen peacefully it must be popular, supported by most people around the world. That, in turn, means the new system must ultimately be more democratic, because the most popular system is one in which most people feel they have a stake.

Certainly the new system we imagine must get rid of the perverse incentives that result in war, the devastation of our environment and inequality. Instead it must encourage environmental stewardship, cooperation and equality, both of responsibility and power. These must become foundational principles of our economy as well as our political system on the local, national, international and personal level.

But this imagined system must be achievable, because it is worse than pointless to dream about something that cannot happen, it is a waste of time we do not have. And to be achievable this new system must be something that can be built by the people who are currently, or soon to be, alive.

A very tall order, indeed, but whatever the details of this new system of economic and political democracy, millions of us need to soon begin imagining it.

Gary Engler

Top 10 ways we can build a better economic system

26 Aug

For the numerous readers who asked: “But what can we do?” after reading my Top 10 Reasons to Hate Capitalism:

  1. We can elect governments that represent people rather than corporations. This will require serious electoral reform and include laws to make it clear corporations are not people and therefore cannot participate in the political process. A government representing all the people would regulate corporations to ensure socially responsible behaviour and transform psychopathic capitalist monstrosities into democratic, social enterprises that benefit all.
  2. We can build communities and organizations that encourage solidarity, compassion and altruism. These will include worker, consumer, housing and producer cooperatives, as well as institutions of government. People must always remain vigilant, especially while capitalism continues to exist, about the pervasive power of greed to destroy these communities and organizations.
  3. We can promote and build a democratic economy in which social ownership replaces private ownership of communities’ means of livelihood. The people who work in them and the communities in which they are located should control economic enterprises.
  4. Since authentic freedom for any of us can only come when all of us are free we must create enterprises, communities, forms of governance and institutions that respect the rights of everyone and encourage the creativity of all. Socially useful individual enterprise should be encouraged but everywhere people work together we must create effective forms of democratic decision-making to promote creative input from all involved.
  5. Everywhere we work we can organize in ways that become the building blocks of a new, democratic economy. Sometimes this will be through existing unions but often we will create new organizations that defend our day-to-day interests while self-consciously preparing to replace capitalist minority rule with democratic social control of all enterprises.
  6. We can work to undermine capitalist, consumerist propaganda whether it masquerades as news, entertainment or advertising. We can create forms of newsgathering and information-exchange that challenge capitalism while building the self-confidence of people everywhere to democratically manage our economy. Rather than spend countless empty hours consuming mindless advertising-driven ‘entertainment’ we can relearn the myriad forms of healthy social interaction that brought joy and solidarity to generations past. Millions of us can discover the fun in making a better world.
  7. We can rebuild a progressive taxation system in which people with extreme incomes pay very high levels of taxes. We can promote a one person, one vote system of decision-making everywhere we work together, whether in the political, social or economic realm. The means of bringing about such fundamental change may, in part, come through existing political structures, but will also include diverse forms of mobilization as workers, residents, concerned citizens, producers and human beings supporting a healthy planet.
  8. We can speak up for our planet as one community with intertwined interests that can only be satisfied through mutual respect and cooperation. We can learn from indigenous communities to respect the earth. We can act on the principle that an injury to one anywhere and everywhere is an injury to all. At a minimum this requires an end to war and environmental destruction of every sort. We can work together in enterprises and organizations that exist in local communities, but which also connect with like-minded regional, national and international groups to accomplish the changes we need.
  9. Through our words and actions we can demonstrate that the realistic alternative to capitalism is an expansion of democracy. In order to build the peaceful, ecologically sane world we desire, our tactics are non-violent, but we understand that people under attack have a right to self-defence.
  10. We can replace capitalism with a system based on social ownership, equal human entitlement and workplace democracy. Building an economic democracy is the key to human survival. We can exist in harmony with our environment if we get rid of capitalism and promote respect for nature and understanding the interdependence of all forms of life.

Gary Engler

Capitalism a leech on publicly funded research

23 Aug

Prevailing neo-liberal dogma holds that private capital is responsible for most economic innovation and that governments stand in the way. In The Entrepreneurial State: Debunking Public vs, Private Sector Myths, Mariana Mazzucato points out that most research is funded by governments and that current anti-government policies not only widen disparities but threaten future innovation, especially the mobilization of resources necessary to rapidly shift away from dependence on carbon-spewing fossil fuels.   

Mazzucato—professor of The Economics of Innovation at Sussex University in the UK—argues that capitalists are not the visionary risk-takers that free-market economists, the corporate media and politicians would have us believe.  Their focus on maximizing profits actually makes capitalists risk-averse.

Governments fund and organize research and development precisely because they do not have to answer to shareholders. They can have broader goals—future well being, new employment, reduced disparities, or environmental integrity.  And in fact, even in the U.S. the federal government funds two-thirds of the country’s research and development: private business funds less than twenty percent.

Neo-liberal ideology aside, capital has long depended on governments to fund research. In earlier times, governments funded research on canon fire and ocean shipping. They funded construction of railways, telegraph then telephone lines, and funded research on aerodynamics and jet engines. After government funding has made production profitable private business takes charge.

Today, military-industrial corporations continue to rely on publicly funded research to develop weapons and equipment. They then sell the results to governments at cost plus inflated profits. Pharmaceutical corporations do the same. Most new drugs are developed in publicly funded labs.  These are then modified slightly, patented and sold to government-funded health care systems at hundreds of times the production cost.

Contrary to public opinion, neither Steve Jobs nor Apple had a critical role in the development of the Internet  or iPhones.  Hard disk drives were developed by the U.S. Defense Advanced Research Projects Agency. The Internet was constructed by U.S. federal agencies working with publicly funded universities. The Hypertext Transfer Protocol (HTTP) and the World Wide Web were conceived by U.K. government-funded scientists.

Touch screen technology was developed in government labs in the U.S. and U.K.  GPS was developed by the U.S. military and continues to be funded by the U.S. Air Force. Lithium Ion batteries were developed by U.S. Department of Energy scientists. Liquid Crystal Display (LCD) and Thin Film Transistors (TFT) were developed in government-funded labs. So were SIRI, an artificial intelligence program, and the critical Web Search algorithm.

Steve Jobs and Apple can be credited with stylishly rounded edges on computers and iPhones. Eye-catching design and effective marketing allowed their shareholders to make billions from the socialization of research and the privatization of profits.

Future innovation in the U.S., U.K. and Canada, Mazzucato argues, is threatened by current anti-government policies. A few—wealthy capitalists—have unquestionably benefited from neo-liberal policies. Corporations have been freed to move technical and professional employment as well as jobs in manufacturing and services to places where wages are lower, where enforcement of labor and environmental regulations is lax. Meanwhile, cuts to taxes and government spending have widened disparities, aggravated market stagnation, and by reducing funds available for research are prolonging dependence on fossil fuels.

If carbon-induced global warming is to be reversed, massive sums will have to be invested. Widely coordinated action will be required to rapidly replace dependence on fossil fuels with solar, wind, tidal, wave, and geothermal power. Existing capital is locked into profits from fossil fuels; private capital cannot be expected to take the lead. Only the public can mobilize the resources required.

Where measures have been taken, public authorities have taken the initiatives. Denmark is a leader in the technology of wind power.  China has massively increased its production of wind and solar power.  Germany has installed solar panels that can produce as much electricity as 24 nuclear power plants. Wider action is blocked by corporate lobbying anti-government ideology. Denying carbon-fueled climate change is no longer credible; still so long as governments are denied the means to act, corporations and their shareholders can continue to make massive profits from fossil fuels.

Concerted public action is urgently required to develop low-cost electricity storage, to construct the smart grids and digitized energy distribution systems needed to “optimize the flexibility, performance, and efficiency” of wind and solar power.  Concerted public action is also required to rapidly reduce consumer waste and industrial and agricultural pollution.  National, regional and local governments could gain the resources needed if taxes were raised on corporations and top incomes as well as on financial transactions, wealth, and inheritance. Increasing taxes on capital would socialize some profits. Most of the costs of innovation have already been socialized.

Al Engler

 

Top 10 reasons to hate capitalism

13 Aug
  1. Capitalist corporations suffer from a personality disorder characterized by enduring antisocial behavior, diminished empathy and remorse, and are rewarded by shareholders for acting that way. If corporations could be sent to a criminal psychologist’s office they’d be diagnosed as psychopaths and locked away forever.
  2. Capitalism encourages greed. But greed is only good for capitalists. For normal people it is anti-social and soul destroying, not to mention very bad for our communities, which rely on altruism, compassion and a generalized concern for others.
  3. Capitalism is a system of minority privilege and class rule based on the private ownership of means of livelihood. This gives a few rich people the power to buy and sell jobs, which means they can build or destroy entire communities that depend on those jobs.
  4. Capitalists praise freedom and individualism, but they destroy freedom and individualism for everyone but themselves. The vast majority of us who work for a living are daily asked to uncritically follow orders, to act as if we are machines, and limit our creativity to what profits our bosses.
  5. Capitalists denigrate cooperation and collectivism, but create mass production processes that rely on both from workers. Their system requires us to be cogs in a giant profit-making machine, but because they fear the power this gives us we are told working together for our own interests is illegitimate and bad. Thus capitalists undermine unions and other organizations that encourage workers to cooperate with each other and act collectively.
  6. Capitalism requires the largest propaganda system the world has ever known to convince us it is the only system possible. It turns people into consumers through advertising, marketing, entertainment and even so-called news. Millions around the world are employed to use their creativity to twist our feelings of love, desire, human solidarity and fairness into tools of manipulation, so that ever more profits can flow into the hands of a tiny minority.
  7. Capitalism is a system in which the principle of one dollar, one vote, dominates that of one person, one vote. Those who own the most shares (bought with their dollars) control giant corporations, many of which are more powerful than all but a few governments. Rich people also use their money to dominate the elections that are supposed to give us all one, equal vote. Under capitalism those with the most money are entitled to the most goods and services as well as the most say in directing our governments and our economy.
  8. Capitalism proclaims the virtue of naked self-interest, but self-interest without regard for morality, ecology or common sense leads to environmental degradation, destruction of indigenous communities, colonialism, war and other forms of mass destruction. Self-interest leads capitalists to seek profit absolutely everywhere, regardless of the damage done to other people and the health of the planet’s ecosystem. Self-interest leads capitalists to destroy any rival economic system or way of thinking (such as indigenous communal land use and respect for nature) that can be a barrier to their endless quest for profit.
  9. Capitalism is not a friend to democracy but ultimately its enemy. When pushed, capitalists choose capitalism over democracy. If people use democracy to weaken the power of capitalists the rich and powerful turn to various forms of fascism in order to keep their privileges.
  10. Capitalism is a cancer taking over our planet. Capitalists make profits from global warming, from destroying our oceans, from pumping ever more chemicals into the atmosphere and from patenting everything they can, including life itself. Only by getting rid of capitalism can we rescue our environment

Gary Engler

Explaining Gaza to my 7-year old granddaughter

29 Jul

“Grandpa, why are they killing kids in Gaza?”

A deep breath to compose my thoughts.

“You said most people were good, but I think only bad people could drop bombs on little kids. There was a boy crying on TV. He lost his whole family.”

“Most people are good but sometimes they do bad things,” I answered.

Back came the inevitable: “Why?”

“Because of greed and bad ideas. Those are the two main reasons people do bad stuff.”

Her expectant stare caused a moment of panic. She needed an explanation. She needed the truth. But the dilemma in explaining war to a seven year old is that simple answers — “these are the good guys and those are the bad guys” — are part of the problem. Simple answers limit critical thinking and enable those who profit from war to manipulate people. How could I explain a complicated subject in a simple enough manner that helped my granddaughter learn to think for herself? I had to try.

“You know what Israel is?”

“It’s a country. My friend Sarah went there for a holiday.”

“It’s a country that was started with some bad ideas that seemed like good ideas at the time. It’s a country the greediest people in the world give bombs, airplanes and other weapons to, because these greedy people have the bad idea that they’ll make lots of money and keep their power by doing it.”

The look on her face proved this was far too complicated. Start over.

“Do you know what religion is?”

“It’s like when people believe in god and go to church and stuff.”

“Yes. One religion is called Judaism and the people who belong to it are called Jews. It’s very old and a little bit different from other religions because some people still call themselves Jews even if they don’t believe in god or follow any of the Jewish rules. Through most of their history Jews have lived in places where there was another, more powerful religion and many times the bigger religion picked on Jews. You know, like kids picking on someone just because they’re different.”

“I know. Papa explained that to me.”

“Well in Europe picking on Jews grew and grew until a very bad man named Hitler took over in Germany and during a war his armies killed millions of Jews, including mommas, papas, grandmas, grandpas and little kids. That was called the Holocaust.”

“Millions?”

“Yes. It was very horrible and after the war the world felt so bad about the Holocaust that the governments of the most powerful countries said the Jews could have a country of their own where they could run things for themselves. Sort of like giving the kids who have been picked on their own playground.”

“Their own playground far away from the bullies?”

“Exactly, but the problem was that the land which the powerful countries gave to the Jews belonged to other people.”

“How could they give away land that belonged to other people?”

“Well, unfortunately that used to happen a lot. Like right here in Canada when the British and the French fought over land that belonged to the First Nations. Mama and Papa have explained colonialism to you, right?”

She nodded. “That was very bad.”

“This country given to the Jews was called Israel and some people thought it would be the perfect thing to end all the bullying that had happened in Europe, but others were not so sure. Some people said that if you gave land that belonged to other people the only way Jews would be able to keep it would be by becoming bullies themselves.”

“Why?”

“Because the people who lived there, the Palestinians, wouldn’t just give up their homes. Why should they? Palestinians weren’t the ones who had killed the Jews so why should they be punished for bad things Europeans had done? People predicted that the Jews would have to fight the Palestinians for the land and that’s exactly what happened, over and over again. And it’s still happening today.”

“They fight to take the Palestinian land?”

“At the root of it yes.”

“Are the Jews bullies now?”

“Jews are the same as everyone. Some are bad, but most are nice. Most don’t even live in Israel.”

“But taking people’s homes is not nice. Dropping bombs is not nice.”

“You’re right. But are you a bad person when you pick on your sister or have a temper tantrum? No, you’re a nice person doing something bad. It’s the government of Israel, its army, one of the largest in the world, and the police who are bullies. They’re always picking on Palestinians, especially the ones who still live on the land that the right-wing Israelis want for themselves, but that the governments of the world say belongs to Palestine. Of course this makes the Palestinians very mad and they try to fight back anyway they can. When they do, the Israeli government puts them in jail or tears down their houses or drops bombs on them and kills lots of little kids. Then Israel and its supporters says they can’t possibly be nice to Palestinians because all they ever do is fight.”

“I think the Israelis are mean.”

“I do too. But the real question is how do we stop it?”

“I don’t know.”

“How do you stop someone being mean on the playground?”

“By telling the teacher.”

“Sure, but sometimes that doesn’t work. And in the case of Israel telling the teacher is like telling the most powerful country in the world, which is the USA. But the USA keeps on giving Israel all the bombs and other weapons it wants. It suits the interests of the rich people who run the USA to keep everyone in the different countries around Israel fighting amongst themselves.”

She looked perplexed.

“So what do you do if the teacher doesn’t stop someone who is being mean?”

“Stop playing with them?”

“Exactly. If you can’t get a teacher or an adult to stop a bully, you stop playing with them. You avoid them. You tell your friends and everyone you know to stop playing with them, to avoid them. If no one plays with a mean person, if everyone avoids a bully, they just might learn that only way to have friends is by being nice to people. Right?”

She nodded.

“Well that’s what we need to do to Israel. We need to boycott it until it stops being mean to Palestinians, until it allows them to have their own country. That’s the only non-violent way of fixing things. Does that make sense?”

She nodded. “Sometimes when I’m bad, Mama makes me have a timeout.”

“That’s right, Israel needs a timeout. You remember when I took you to the candy store and bought you some but you wanted more. And I made the mistake of listening to you and buying you more? And that still wasn’t enough? You wanted even more? Then you threw a temper tantrum. You hit your sister because she wouldn’t give you her lollipop, even though you’d already eaten yours?””

“Mama said it was because of the sugar.”

“Exactly.”

“Is that what Israel is like?”

“Pretty close.”

She thought about it for a few seconds and then asked: “Grandpa, can you read me a book?”

Gary Engler

The new Capital — a review

24 Jun

Thomas Piketty’s, Capital in the Twenty-First Century, is a sensation—an economics textbook, translated from the French, that has been on the New York Times best-seller list. It is an important work. If you ignore more than one hundred pages of notes, it is still a long but easy read.

Piketty, a prominent French economist and social scientist, uses rigorous logic and reputable statistics to dismiss the mainstream claim that capitalist markets are based on individual equality, and that great wealth is a fair reward for individual contributions to general wellbeing. He shows that capitalism in its logic and observable practice actually widens disparities between the super rich and everyone else.

The title of the book conjures images of Karl Marx’s Capital. But Piketty says he is not a Marxist; he does not call for the abolition of capitalism. He is a social democrat who explicitly rejects the top-down centralized state ownership of the twentieth century USSR. He looks to a more democratic alternative, arguing that economics, which he prefers to call political economy, should refocus on how best to meet human needs. He looks to cooperatives, community ownership, and more democratic control of workplaces.

The two Capitals have distinct starting points. Marx began with the commodity. He makes the case that exchange value is determined by labor time embodied in commodities, and that the wealth and power of capital come at the expense of labor. Although Marx grumpily dismissed campaigns to abolish market exchange as utopian, his focus on the commodity convinced many of his readers that opposing capitalism meant opposing commodity exchange.

Piketty’s analysis is focused on the distribution of income and wealth. He begins with a logically indisputable proposition: when the rate of return on capital is greater than the rate of economic growth, capital increases its share of total income. He then tests this hypothesis with historical statistics. These show that national growth rates usually range from one to two percent; the return on capital is usually around five percent. Without deliberate public intervention the share of income going to capital must grow.

Piketty’s focus on income distribution is a more direct and convincing critique of capitalism. To be fair, Marx was writing in the 1860s. Credible income statistics did not become available until governments adopted income taxes to pay for World War I. Marx’s critique was necessarily more abstract, more a criticism of capitalist market theory than of capitalist practice.

Piketty, born in 1971, knows that twentieth-century attempts to replace market exchange with top-down state direction required unacceptably heavy and intrusive repression. The USSR’s disadvantages have been well documented, but capitalism is hardly the utopia of equal opportunity its supporters claim. In France, the U.K., and the U.S., the share of total income currently appropriated by capital is thirty percent. The top 0.1 percent of income earners own twenty percent of wealth. The top one percent own 40 percent. The top ten percent own 80 to 90 percent. The bottom 50 percent own a mere five percent of wealth.

Mainstream economics justifies great fortunes in a few hands by claiming these are just rewards for successful work, innovation, and merit. In fact sixty percent of great fortunes are inherited. Piketty shows that capitalism continues to be a system of patrimonial wealth. Even for those few wealthy individuals who are or were innovators, it does not take long before the income earned from their past capital exceeds the income from their work. For countries with reliable statistics, annual income from capital now accounts for thirty percent of total income. Privately-held wealth equals 600 per cent of annual national income.

Nonetheless, governments, electoral parties, and the corporate media insist that the main problem facing economies is public debt. Actually public debt in most countries ranges between thirty and seventy percent of GDP. In the nineteenth and twentieth centuries, the governments of major capitalist countries had debts that reached 200 percent of their GDP. Past governments reduced debt by cutting public spending, by allowing inflation to rise, and by increasing taxes.

Austerity is the most damaging way to reduce public debt. Government cutbacks increase unemployment, reduce working-class income and consumer purchasing power, aggravating market stagnation. Inflation does reduce the real value of debt, but largely at the expense of the investments of middle income pensioners. The most benign way to reduce public debt is to increase taxes on great wealth and on the highest top incomes.

Piketty argues that marginal tax rates on income over $500,000 could reasonably be raised to 80 percent and that progressive inheritance taxes should be instituted or raised. In addition, he calls for an annual tax on all private wealth including real property, stocks, bonds, bank balances, and assets held abroad. This annual wealth tax could be one percent on wealth from $1 to $5million; two percent on wealth over $5 million; and 5 to 10 percent on wealth over $1 billion.

Piketty concedes that such taxes in the present political climate appear utopian and could lead to capital flight, if not coordinated among numerous countries. Still people should begin discussing such taxes. Once widely implemented by the international community, public debt could be quickly eliminated. Public spending to meet human needs and to sustain consumer markets could be increased. The tendency of capitalists to appropriate more and more income would be reversed. Democracy would be strengthened as information on private wealth become more transparent. Such taxes could also provide the public with the means to respond to climate change. Massive investments are required to move away from dependence on fossil fuels: if private capital does not take the initiative, taxes on wealth could provide the public with the revenues needed.

Al Engler

Capital in the Twenty-First Century, Thomas Piketty, The Belknap Press of Harvard University, 2014, 685 pages

Corporate organized crime

23 Jun

“I’m gonna make him an offer he can’t refuse,” is one of the most famous lines in cinematic history. It is the set-up for the scene in Godfather where a big shot Hollywood producer wakes up with a bloody horse’s head in his bed.

In less than 10 words it also perfectly sums up how the rich and powerful get their way. Use of the tactic has certainly never been limited to Mafiosi.

In fact, countries possessing military might have made “offers they can’t refuse” all through history to less powerful nations or regions.

But today’s ultimate practitioners are giant corporations that dominate the world economy. The 0.1% wealthiest people on the planet use their control of these corporations to impose their will on the rest of us.

Their “offers we can’t refuse” go something like this:

“Cut pensions, chop government jobs, privatize everything you can, or we will start a run on your currency and sink your entire economy.”

“Sign this ‘free trade agreement’ or we will pull all our investments from your country and move them to places that have agreed to everything we want.”

“Cut our taxes or we will fund a political party that will.”

“Build this pipeline if you want jobs.”

“We don’t care about democracy, satisfying us is more important that satisfying the will of the majority.”

“Weaken unions, or we’ll take our money and run.”

“Ignore global warming, or we’ll make sure you regret it.”

“If we don’t like your response or you protest too much, maybe even at all, we will use the violence at our disposal, including that of the governments we own, to crush you.”

But it’s not just threats. Like Don Corleone, the corporations also have politicians, judges, journalists, academics, lobbyists, personalities and many others on their payroll to lie, obfuscate, corrupt, manipulate and who knows what else in order to get their way. Both the wise Mafia Don and the effective corporate CEO understand that power comes in many forms. The use of violence needs to be minimized. Better to save it for when there is no other way to impose your will, or it loses its effectiveness. And too much looks bad. (Witness Iraq and Afghanistan.)

But here’s the thing with both organized crime and our economic system in general. There’s always some competitor — be it a long established rival or neighbourhood punk/upstart capitalist — willing to employ whatever means necessary to steal your territory. If you get soft you risk losing everything. If your profit margins are less than your competitors their power will grow while yours stagnates.

As the movie (and its sequels) vividly shows, there can be no Mr. Nice Guy Mafia Don. The logic of organized crime makes it impossible. To be successful — to survive — lying, cheating, bribing and ultimately violence is necessary.

The same is true of our wider economic system. While violence is usually confined to governments that the corporations control, in both worlds hands get dirty doing whatever it takes to succeed because the system demands it.

This is why environmentalists who look for capitalist solutions to global warming are either extremely naïve or in the pay of corporations. This is why union leaders who fail to see the fundamental contradiction between workers’ and capitalists’ interests often sell out to the bosses. This is why in the long run there can be no capitalism with a human face.

If the 0.1% who own and control most of our economy want to keep their power they will act as capitalists have always acted. They will grab as much profit for themselves as they can and pass the environmental costs onto the rest of us while doing so. They will try to reduce wages to increase their profits. They will manipulate democracy to get their way. They will attempt to overthrow democracy if it threatens their existence. They have no choice. Greed, self-interest and a relentless drive to increase profits are the foundations upon which the capitalist economic system is built.

Only when the vast majority of us, the 90% who work for a living, come together to use our collective power to create a new democratic economic system will anything change.

Only greater power can overcome the might of the Mafia Don or the corporate CEO: The power of the people who actually do all the work that makes up our economy.

Gary Engler

Piketty’s book important, but should go one step further

2 Jun

Is Thomas Piketty’s Capital in the 21st Century a left-wing book?

Yes and no. It depends on how you define left wing.

If you believe the litmus test of being “left” is opposition to capitalism then the book may be interesting and important, but it is not left wing. If, on the other hand, you believe capitalism is a dynamic economic system worth preserving, but in need of a tune-up, you would likely have a different answer. In the range of political/economic opinion allowed in the corporate North American media the book is certainly at the left end of the spectrum.

But perhaps there is another more important question to consider. Is the book useful, including to those who think an alternative to capitalism is both desirable and necessary? And the answer is an unequivocal yes.

Strangely, it’s not primarily for the reason you may think, if all you know about the work is what you have read or heard in the mainstream media.

While most of the commentary has been about the book’s take on inequality and the author’s prescription (a tax on capital) for controlling the problem, the really unique and useful aspects of Piketty’s work are his insistence on what might be called “reality-based” economics and his straightforward, easy-to-read language.

Unlike the obscurant writing and “fairy-tale” premises that typify most works of economics, Piketty bases his arguments in actual data and sets out to explain them in a style that is accessible to a broad range of readers.

Imagine that! Economics for everyone, including those of us who insist that theories should be tested in the real world! Refreshing, almost scientific.

If Piketty can do it we should hold all economists to these standards. Imagine no more theories of perfect competition where all buyers know everything about all sellers, but instead explanations of what really happens when individuals suffering from a lifetime of brainwashing come up against the might of multinational corporations. Imagine economics that explained the world as lived by ordinary people in a fashion that most of us can understand.

This threat of a good example explains much of the “emperor does so have clothes” reaction of orthodox academic economists and their fellow travellers in the business press to Piketty’s book. Then you add in the overwhelming evidence presented in Capital that inequality does exist, has grown over the past three decades of neoliberal reform, and is likely to grow much greater  — and yes sir those apostles of greed sure are angry.

So, the book is important and you should read it, but … let’s just say one should be aware of its limitations.

Contrary to what you might assume based on the attacks from certain quarters, the author does not advocate socialism — unless you believe socialism can be defined as simply trying to be nice to everyone and sometimes using the government to override the power that capitalism gives rich people.

Piketty is firmly in the camp of those who would save capitalism from itself. While he does argue too much inequality is bad because it threatens democracy and leads to revolution, or at least economic nationalism, there is no question he supports the system. He frequently and explicitly praises capitalism as the best economic system because it produces the most growth. There is no mention of an environmental crisis and its link to inequality and an economic system that values greed above all else until the very end, almost as an afterthought. He does not deal with environmental limits to growth.

Still, the book provides all sorts of useful information about the last 200 years of actually existing capitalism. Its offers a glimpse of what the study of economics should be. Piketty seems to be on the side of ordinary people and even makes mention of economic democracy.

Go and buy Capital in the 21st Century from your local bookstore, but read it with this thought in mind: Rather than tinkering with capitalism, can’t we come up with a better system? One that democratizes economic decision making while rescuing our environment from the ravages of unchecked greed, also known as the fallacy of unlimited growth?

Gary Engler

An impertinent question

21 May

Do people exist to serve the economy or does the economy exist to serve people?

This question came to me as the left side of my brain was reading Thomas Piketty’s important new book Capital in the 21st Century while the right side of my brain watched the news.

There was an item about the B.C. government chopping money from university arts’ programs to fund apprenticeships because it would produce more taxpayers, which would be good for the economy, followed by a commercial touting the Northern Gateway pipeline, which also would be good the economy. As my right brain soaked in the TV images my left brain was digesting statistics that demonstrated conclusively most wealth is owned by a few people and this inequality is growing.

Do people exist to serve the economy or does the economy exist to serve people?

When the two sides of my brain began acting together I realized this is not merely a rhetorical question. Rather, even raising the issue is subversive, or at least impertinent to those who maintain the status quo.

At its most basic level the economy is the sum total of the things people do to provide themselves food, shelter and other things that enhance life, such as recreation, healthcare, entertainment and art. So, the answer to our question should be clear-cut: The point of an economy is to serve people.

But the reality for most of us is exactly the opposite.

We are told the economy demands this or that as if it were some sort of primitive deity to be appeased.

Raising the minimum wage is bad for the economy. Expanding the tar sands and building pipelines to ship bitumen around the world is good. Public daycare or increased pensions are not affordable. Mass layoffs and wage rollbacks are necessary. But consume anyways (the more disposable the better), because that’s what makes the economy go round and round.

Politicians, corporate executives and the media all send us the message that our lives only attain meaning in so far as we contribute to the economy as consumers or taxpayers.

Rather than serving us, “the economy” has become an excuse to treat many people badly, to create unhealthy products, to damage our environment, to justify exploitation, to steal from other people and even to wage war.

Why?

The primary reason is that too much of the economy is run by and for a small minority of people. As Picketty’s statistics show, actual existing capitalism (as opposed to the phoney idealized system taught in school) concentrates ownership of wealth in the hands of a few people. This wealth produces both income and power, so much of which has gone to the richest 1% that any effective democracy is threatened.

Many of us feel powerless in the face of this inequality. Our unions have been undermined and delegitimized. The system tells us our only valid participation in the economy is as consumers, but getting to choose between Coke and Pepsi hardly inspires a sense of engagement.

We certainly get no vote in directing the economy, unless we are shareholders, and in that realm decisions are made by one-dollar-one vote, so billionaires hold sway. Moreover, for at least the past 30 years, the prevailing wisdom has been that governments are incompetent and therefore must keep their hands off the economy. We are told any sort of democratic control is bad because it creates distortions in the natural working of the system, as if there was some divine order that was being interfered with.

But it is not god’s will that is being challenged when democratic control is asserted. Rather it is the will of the 1% who currently own a vast proportion of the economy and direct it (and us) in their self-interest. There are no mysterious natural forces deciding what gets built, what gets shut down, who loses their jobs, how much to invest in green energy versus the tar sands; there are only very wealthy people and the managers who work for them.

Given that, it is really no surprise that the economy seldom serves the interests of the majority — it serves other masters. The economy follows the orders of the people who own it. And it gives the biggest rewards to the ones among them who are the greediest, the most willing to grab huge profits for themselves while making the rest of us pay for the pollution, ill health and other forms of destruction their industry causes. Then they spend some of those vast profits to buy politicians, think tanks and media pundits who work to convince us that this form of minority rule is good for us — the natural order — and trying to create a better system is hopeless.

But what if, despite all that, we demanded an economy that served all of us? What would we do?

Piketty argues for a tax on wealth and that might be a good starting point, but if we really want to fix this we must go further. When the problem is too much power in the hands of a few the obvious solution is to distribute that power more widely.

We should take away control of the economy from the greedy minority and share it amongst all of us. A good name for such a system is economic democracy.

The exact form such a system might take would probably depend on a country’s history, culture and level of development. But essential elements would be: one-person-one-vote instead of one-dollar-one-vote decision making in all aspects of the economy; workplace democracy instead of master-servant relations and community control instead of corporate control.

If we want an economy that serves all people we must create a system of democratic governance to ensure that happens.

 Gary Engler

Global warming is caused by capitalist greed

30 Apr

Humans have caused climate change by pumping ever more carbon dioxide into the atmosphere and we must quickly cut these emissions.

True, but what has this got to do with unions?

Well, at their core unions are organizations that bring people together to fight for the common good. This essential truth is reflected in the structure, philosophy and history of most unions.

But exactly whose “common good” a union is fighting for can vary widely.

Is it narrowly defined as immediate job interests of local union members? Is it the common good of all those working in a particular trade? All union members in one industry?

Or is it more widely defined as the common good of every union member? Every worker in a particular country? Of all Canadians? All the workers of the world? Every person in the world? Or even wider as the common good of all life on the planet?

The truth is every thoughtful union member, and especially every union leader, must consider the common good from many different perspectives. Everyone has more than one self-interest and therefore more than one common good.

No one is solely a pipefitter, nurse, front desk clerk; or employee of General Motors; we are also children, parents, residents of a city or town, citizens of a country, inhabitants of a planet who are dependent on a common environment, and much more besides.

But unions often find it easiest to fight for the narrowest common good, the immediate self-interest of workers in a particular trade, industry, or company. Higher pay, improved benefits, better job security — members almost always cheer if a union achieves these things. Fighting for all life on the planet or against inequality is a bit more complicated.

But there is another reason as well why unions find it easiest to fight for the narrowest common good. “Looking after No. 1” is what capitalism tells people to do. You are a consumer. Buying more is what life is all about.

In fact, proponents of capitalism argue there is no such thing as the common good, that we are all simply individual consumers and therefore unions are an illegitimate intrusion into the free market. Still, if workers are going to unite for any purpose it had better be limited to stuff like higher pay, something that allows people to buy more and does not challenge capitalism.

So, here’s the reality we face: In so far as a union, its leadership and members have bought into capitalism, the greater the likelihood that union will choose to focus on a very narrow self-interest and ignore such issues as climate change or inequality. Some unions do buy into capitalism despite the fact it does not like workers joining together to fight for any common good, whether narrowly or broadly defined. If it were up to capitalists there would be no unions at all. Capitalists — the bosses — are not our friends. The more people buy into their system the weaker unions are.

And the opposite is also true. The more people come together to fight for the common good, the stronger unions are. The more unions fight for the widest common good, the more people will be on our side and the stronger unions will be. The more unions fight the existing system the stronger unions are.

History shows that the periods of greatest growth in unions were times when capitalism faced widespread challenges and the periods when unions have shrunk, like during the past 20 years, were times when opposition to capitalism was weak.

History also shows that unions have been willing to fight for the widest common good despite opposition from the rich and powerful. Unions were part of the struggle to end slavery and child labour; unions helped win universal voting rights, public education, equal rights, Old Age Pensions, Medicare, the 40-hour work week, paid vacations and numerous other social programs that have benefited society as a whole.

It won’t be easy to stop global warming. Many brothers and sisters earn their living extracting oil, building private automobiles and mining coal, industries that must shrink or disappear to save our planet. Of course this raises difficulties inside the labour movement because it pits narrow self-interest against the wider common good.

But progressive unions were not deterred by similar internal problems in the struggle for civil rights or against sexism and homophobia. As in those battles we must do what is necessary and right. We must demand jobs that do not harm the environment. We must not shy away from battling climate change because there is no more important common good than the health of our environment. We must learn from and work with environmentalists.

But environmental activists must also learn an important lesson from the long history of the labour movement: Capitalism is the problem and certainly not the solution.

The capitalist drive to maximize profits explains the externalizing of environmental costs. Capitalism is a system of small minorities profiting at the expense of others. Private ownership of what are social means of livelihood allows capitalists to make decisions that pass the real costs of industry to communities, workers, future generations and other species.

Capitalism requires growth. But what happens when the environment needs a smaller human footprint? When, at least in wealthier countries, we must learn to live with less stuff?

If a capitalist economy shrinks for a sustained period the system goes into a crisis. Banks crash, unemployment rises and wars suddenly make sense to rich people in order to get their system growing again.

Supporters of capitalism claim the system is based on freedom and choice, but when it comes to the environment for many people this amounts to the freedom to choose between destroying the planet or having a job. The promoters of tar sands, fracking, coal mining and pipelines are explicit about this. The business pages are full of stories quoting the captains of the carbon-industrial complex as telling us: “You must choose between economic prosperity and what is good for the environment, because you can’t have both.”

With capitalism they are correct.

Yet someenvironmentalists, as well as some union members, look to capitalism for solutions. That’s like expecting Toronto Mayor Rob Ford to tell the truth. A sustainable, democratic economy is incompatible with a system run in the interests of a tiny minority that constantly demands more profit.

Science leaves little reasonable doubt that the burning of currently known reserves of coal, oil and natural gas will push atmospheric carbon dioxide levels past a tipping point, after which rising global temperatures will irreversibly undermine the conditions on which human life as we know it depends.

Despite the evidence, today’s capitalism rests on the expansion of fossil fuel production and use.

In Canada capitalist investment is focused on expanding tar sands production. The promoters claim that these developments will create jobs. But every analysis shows more jobs would be produced if equivalent investments were made in solar, wind and geothermal power. Far more jobs could be produced by investing in domestic employment for domestic markets, in the production and distribution of sustainable local agriculture, clothing, etc. Even more jobs would be created by investments in childcare, elder care, social housing, public transit and other green infrastructure.

More jobs but less profit. Capitalists invest in fossil fuels because corporate profits now largely depend on cheap fuel. Equivalent profits cannot be made meeting actual human needs.

So, unions and environmentalists share a common enemy: an economic system run by and for the wealthiest people in the world.

Together we can fight for a different sort of economic system that will prosper in harmony with the environment. Or apart we can fiddle with capitalism as our planet burns.

Gary Engler

From a speech given on the weekend at the Peoples’ Social Forum Assembly on Climate and Oil & Gas in B.C.

‘The Sixth Extinction’ and our looming catastrophe

24 Apr

Carbon dioxide from the burning of fossil fuels is warming the planet, melting glaciers and polar ice caps, raising sea levels, causing more destructive hurricanes, floods, and droughts and increasing ocean acidity. So far corporations, governments, electoral parties and the media are largely indifferent.

When presented with the evidence, profit-seekers may concede that perhaps something should be done. The claim that climate change is just a theory is used to justify inaction: no particular storm, hurricane or flood can be directly blamed on the burning of fossil fuels; perhaps the sun or tides or other natural cycles are to blame. Anyway, the threat is in the distant future — long beyond normal quarterly or annual financial reports, beyond the four or six year terms of most governing parties.

In The Sixth Extinction: An Unnatural History, Elizabeth Kolbert points to a direct, indisputable connection between rising atmospheric carbon dioxide levels and the increasing acidity of oceans.

A third of carbon dioxide added to the atmosphere rains into seas. Carbon dioxide dissolved in water becomes carbonic acid. As aquatic acidity rises, the shells of crustaceans weaken and dissolve. Billions of micro-organisms along with lobsters, oysters and coral reefs can no longer survive. As crustaceans disappear so do the creatures that depend on them as food sources, fishes and land animals like human beings.

Kolbert is a staff writer for The New Yorker who earlier published, Field Notes from a Catastrophe: Man, Nature, and Climate Change. As its title indicates, The Sixth Extinctionfocuses on epochal species extinctions. Current science records six major extinctions. The Fifth Extinction, the most widely known, wiped out dinosaurs 65 million years ago. It is attributed to a massive meteor strike off Yucatan. The immediate shock wave caused wide destruction. Clouds of dust then enveloped the planet, altering climates and vegetation.

Scientists call the current extinction, the Sixth, the Anthropocene, the human-caused extinction. The capacity of human beings to alter environments can be traced back at least 11,000 years when large animals, like mammoths, began to disappear. Since then, humans have leveled great forests, altered and blocked the flow of major rivers.

For the last 500 years global exchange and industrial capitalism have dramatically transformed flora, fauna and micro-organisms everywhere. Humans have added massive amounts of chemical fertilizers, herbicides and pesticides to soils and waterways. Our dependence on fossil fuel energy has increased carbon dioxide in the atmosphere to levels not seen in millions of years.

How much of a threat is rising carbon dioxide levels? The past may give us a glimpse of what could happen.

The Third Extinction, the End-Permian, 250 million years ago, was triggered by a massive release of carbon dioxide — from causes not yet understood. Temperatures soared. The chemistry of the oceans changed dramatically. As waters acidified, reefs collapsed; dissolved oxygen levels fell; aquatic organisms that relied on oxygen suffocated. They were replaced by others that used sulfur as an energy source. These gave off hydrogen sulfide, a toxin to most organisms on land and sea. “Glassy purple seas released poisonous bubbles that rose to a pale green sky.” Ninety per cent of land and ocean species disappeared.

Today rising carbon dioxide levels are measurably increasing the acidity of oceans. Coral reefs are shrinking in the Caribbean, off Australia and elsewhere. Other sea life is already under threat. In early 2014, Vancouver Island scallop producers reported that ten million scallops had failed to mature. British Columbia oyster stocks have also declined dramatically.

The Sixth Extinction leaves no doubt that carbon dioxide emissions are a looming catastrophe, far more serious than the profit-seeking establishment would have us believe. The problem is capitalism, a system that entitles major shareholders and top corporate executives to direct economies in their private interests. Capitalist competition drives corporations to maximize profits. Corporate control of the media makes people believe that profits are more important than employment, decent wages and the environment.

The Sixth Extinction makes it clear that action to cut reliance on fossil fuel energy is needed urgently. It is also a popularly written sketch of the evolution of scientific revolutions. Its many anecdotal asides make it an easy read.

Al Engler

The Sixth Extinction: An Unnatural History
 by Elizabeth Kolbert
(Henry Holt and Co.,
 2014; $28.00)

 

Rebuilding the commons through economic democracy

5 Apr

Who runs your workplace?

For most of us the answer is a boss, who reports to a higher boss, who reports to an even higher boss, who reports to a … all the way up to the “owner” of the enterprise. This is called a chain of command.

The words “chain” and “command” are both suggestive of a fundamental truth: Today’s rules about the power of bosses and workers evolved from a time of masters, servants and slaves. While many norms and expectations have changed over the years the fundamental truth that bosses give orders and workers are required to obey remains the same.

This explains the use of the term “wage slavery” by some who oppose capitalism. It suggests that working for wages is similar to being a slave. The Wikipedia entry on wage slavery offers a good introduction to the subject, pointing out the concept is much older than capitalism and that even ancient Romans argued accepting wages for work put one into a slave-like position. The idea that giving up your free will for any reason or length of time makes you a slave is as old as wage work itself.

Interestingly, the usage of the term wage slavery has diminished as a greater and greater proportion of us work for wages. The notion that most of us are effectively slaves is probably too uncomfortable to contemplate. And, of course, not talking about this serves the interests of those who profit from our labour.

But I’d like to suggest there’s another reason as well.

As more and more of us work for wages it becomes more and more normal and we lose the sense of an alternative. I was reminded of this while reading Peter Linebaugh’s stimulating new book Stop, Thief!: The Commons, Enclosures, and Resistance, a series of 15 essays “written against enclosure, the process of privatization, closing off, and fencing in.”

Contrary to the mythology of a modern, progressive and democratic capitalism replacing backward feudalism, most ordinary people had more say in their day-to-day work life before our current economic system came along. In fact, the rights and privileges of “commoners” (the majority of people, whose independent livelihood depended on the shared commons) were destroyed as part of capitalist expansion. To this day, everywhere capitalism goesthe rights and privileges of indigenous people disappear as the commons are enclosed (become private property) so that rich people can steal their profits.

When commons were common, through tens of thousands of years, people mostly developed technology and systems of usage that respected the land, ocean, river, forest, grassland and creatures that lived there. They did this because it was in their collective self-interest to do so. This was reflected in their religions and how their societies were organized, including the ways people thought of themselves.

Mutual respect, independence, collective responsibility, reciprocity, community and what we would now call a sense of ecology were encouraged because all served a society that held its resources in common.

As Linebaugh points out in Stop Thief, 200 years ago poets bemoaned the loss of these values as well as the ugliness created when capitalism enclosed the land and resources that people depended on for their livelihood. Capitalism waged war on the rights, privileges and ideology of commoners. Enclosure of the rest of the world (colonialism) was the logical next step. That war has continued ever since, with today’s military interventions, as well as the mass marketing of never-ending consumption and individualism just the latest in a long line of assaults.

But this is not just interesting history. People who work for wages today can learn important lessons from those who resisted, and continue to resist,the enclosure of the commons.

We should learn that:

  • Every enclosure of the commons is an assault on the environment. The point of capitalism is to exploit nature and other human beings for private profit.
  • Our strength is always collective; it flows from the commons. As individuals we are weak and defeated.
  • We must insist that everywhere people work together be transformed into a commons. The factories, the shops, the distribution systems, all the places of our employment — the entire means of production — are a commons enclosed by capitalists in order to profit at our expense.
  • To create an environmentally sustainable, healthy, nurturing economy requires we no longer accept being wage slaves. We must take responsibility for what we do. We must understand that our world is a commons, not private property, and begin to act collectively to protect the resources that belong to all of us.
  • We must re-learn the values of mutual respect, independence, collective responsibility, reciprocity, community and living in harmony with the environment that were once the hallmarks of commoners.

During most moments of sudden, great change in human history people have been motivated by rights that were lost, insisting they be restored.

To accomplish the great change necessary today let us demand that which requires social labour be recognized for what it is, the common property of all. Let us rebuild the ways of thinking, the social relations, as well as the rights and responsibilities that were lost when our commons were enclosed.

The term that best describes what we would be fighting for is economic democracy. The commons was always an economic democracy.

The term also helps explain a key flaw in our current so-called democracy — power flows from control of the economy, which is “owned” by a tiny minority.

The most successful social movements in the past two centuries have all pushed for an expansion of democracy. The fight for economic democracy would be a continuation of these movements.

Let’s build an economic democracy to rebuild the commons!

Gary Engler

Understanding the intellectual whores of capitalism

28 Mar

There’s nothing worse than ignorant and opinionated.

You know the type: Most mainstream newspapers have at least one; they dominate radio talk shows and certain TV “news” networks.

Loud supporters of the existing economic system who deny inequality is a problem or even claim it doesn’t exist.

Business leaders/columnists/celebrities/media hacks and the “think tanks” they come from who also deny climate change is a problem or even claim it doesn’t exist.

Apostles of greed who claim to be “conservative”, defend chemical-laden, genetics-manipulating industrial food production, ignore all the ways corporations poison our environment, ridicule anyone who points out there must be some limit to the exploitation of the earth’s resources, promote the use of private automobiles, hobble public transportation (and every other public good) by promoting tax cuts, love pipelines and usually claim to speak on behalf of the “middle class” or even the “little guy.”

How should we respond to these defenders of the status quo who frequently pretend to rail against a mythical left-wing media agenda?

Argue with them? Quietly loathe them? Ridicule them? Ignore them?

I’d like to make the case for understanding and pity as the most appropriate reactions.

First, to understand them we must examine the role they play, the first step of which is to recognize whose interests they represent, which is another way of asking: Who would pay them to say/write the things they do?

The answer is, of course, the people who profit most from pipelines, tax cuts, unlimited growth, a private automobile dominated landscape, industrial food production, chemicals poisoning the environment, pipelines, global warming and an acceptance of income inequality.

But why would the billionaires and mere multi-millionaires whose fortunes depend on the continued flow of profits from oil, agribusiness, automobiles, chemical, real estate, media and capitalism in general think it worth their while to handsomely reward thousands of cheerleaders who endlessly repeat a few shallow ideas on the sidelines of capitalism?

Because it is necessary. The wealthy 0.01% minority who rule over the 90% majority understands that the future of their system depends on convincing or paying off 9.99% of the population who become the opinion leaders, the managers, the foremen, the supervisors, the small businessmen and the other shock troops of the system. The rich are like the pathetic men who frequent red-light districts — they must pay for it — and the right wing columnists/celebrities/media hacks/researchers do it for money, often working in the political equivalent of brothels, called think tanks.

The choices offered young writers, journalists and academics who aspire to earn a decent living at their craft are not great today. There are many more opportunities to voice opinions supporting the system than to criticize it. If you do get a job in a shrinking newsroom or social science department the best way to get ahead is always to support the existing power structure, not oppose it. Arguing in favour of the rich and powerful certainly pays better.

And in a time when the Left seldom confronts capitalism, confining its criticisms to tinkering around the edges, rather than offering a vision of an alternative system, should it be a surprise that the easiest route to intellectual success is selling out to the highest bidder?

Media whores are not that much different than the women and a few men who earn a living from selling their bodies. (And I do apologize to every sex-trade worker who is offended by the comparison to Rush Limbaugh.) They too are just trying to survive; they are typically people who don’t have many alternatives; they are often victims of abuse by a system that penalizes intellectual non-conformity (amazing the number of conservative pundits who claim a left-wing background); the ones who do really well at it typically claim they actually enjoy it.

Given the similarities between these two forms prostitution doesn’t it make sense that we respond to both the same way?

We don’t hate streetwalkers or harangue them; we mostly pity them because of our understanding that they are products of sexism and other forms of oppression.

So too should we pity the sycophants of the rich and powerful because we understand they are nothing more than the intellectual prostitutes of an economic system that attempts to buy, sell and profit from everything we do.

Gary Engler

Book reveals real Rwanda story: Imperialism at work

19 Mar

The Rwandan genocide — think you know the story?

Deep-seated ethic enmity erupted in a 100-day genocidal rampage by Hutus killing Tutsis, which was only stopped by the Rwandan Patriotic Front (RPF). A noble Canadian general tried to end the bloodletting but a dysfunctional UN refused resources. Washington was caught off guard by the slaughter, but it has apologized for failing to intervene and has committed to never again avoid its responsibility to protect.

In Rwanda and the new scramble for Africa Robin Philpot demolishes this version of history.

Philpot points out that while the official story begins April 6, 1994, any serious investigation must go back to at least October 1, 1990. On that day an army of mostly exiled Tutsi elite invaded Rwanda. The Ugandan government claimed 4,000 of its troops “deserted” to invade (including the defence minister and head of intelligence). This unbelievable explanation has largely been accepted since Washington and London backed Uganda’s aggression.

More than 90 per cent Tutsi, the RPF could never have gained power democratically in a country where only 15 per cent of the population was Tutsi. Even military victory looked difficult until International Monetary Fund economic adjustments and Western-promoted political reforms weakened the Rwandan government.

The RPF also benefited from the United Nations Assistance Mission For Rwanda (UNAMIR) dispatched to keep the peace. According to Gilbert Ngijo, political assistant to the civilian commander of UNAMIR, “He [UNAMIR commander General Romeo Dallaire] let the RPF get arms. He allowed UNAMIR troops to train RPF soldiers. United Nations troops provided the logistics for the RPF. They even fed them.”

On April 6, 1994, the plane carrying Rwandan Hutu President Juvénal Habyarimana and Burundian Hutu President Cyprien Ntaryamira was shot down. A French judge pointed the finger at Paul Kagame and the RPF. But the head of the International Criminal Tribunal for Rwanda (ICTR), Canadian Louise Arbour refused to investigate evidence implicating the RPF. When the ICTR prosecutor who took over from Arbour, Carla del Ponte, did look at the RPF’s role in shooting down Habyarimana’s plane the British and Americans had her removed.

Habyarimana’s assassination sparked mass killings (but no planned genocide, according to the ICTR). Five days after Habyarimana’s death an internal US memorandum warned of “hundreds of thousands of deaths,” but Philpot notes, “even though they knew that the massacres would occur and that millions would flee to other countries, the Americans devoted all their efforts to forcing the United Nations to withdraw its UNAMIR troops.”

UNAMIR would have blocked the RPF from capturing Kigali, something Washington supported to undermine French influence and to improve the prospects of North American companies in the nearby mineral-rich eastern Congo.

Rarely heard in Canada, Philpot’s version of events aligns with that of former UN head Boutros Boutros-Ghali, civilian head of UNAMIR Jacques-Roger Booh Booh and many French investigators. Presumably, many Rwandans’ also agree but it’s hard to know as Paul Kagame ruthlessly suppresses opponents, regularly labeling them génocidaire.

Ottawa has supported this witch-hunt. Philpot points to the example of a former Rwandan prime minister denied a Canadian visa: “The Prime Minister of the government that supposedly ended the genocide had now become a génocidaire. Canada had already received Prime Minister Faustin Twagiramngu with all honours in December 1994 when he was looking for funding to rebuild Rwanda under the RPF. Either Canada’s institutional memory is short and selective or, more likely, the country has a policy of supporting the RPF government at all costs.”

This book is an invaluable resource for understanding the Rwandan tragedy and countering those who cite it to justify Western military interventions.

Yves Engler

Does death by car not count?

11 Mar

When a plane carrying 239 people disappears and everyone is presumed dead, the world’s TV networks devote hours of coverage to the tragedy. Newspapers run long and detailed stories. Experts are interviewed to discuss probable causes and remedies.

Government safety boards investigate and produce reports. There seems a genuine attempt to learn from what happened in order to prevent the same death and destruction from ever occurring again.

Contrast that to the reaction of death by automobile.

The latest year for which we have statistics (2010) 1,240,000 people died in vehicle crashes across the globe. That’s 3,397 people per day or 142 per hour. Vehicles kill more people every two hours of every single day than died in the Malaysian Airlines crash. And that’s only counting so-called accidents.

Hundreds of thousands more are felled by cancers and other ailments linked to automobile emissions. According to an MIT study, in the US alone 53,000 people die every year from illness attributed to automobile pollutants.

The greenhouse gases emitted by vehicles have also put millions at risk from diseases, disasters and droughts tied to climate disturbances. The Climate Vulnerability Monitor estimates that climate change is responsible for some 400,000 deaths per year, a number expected to hit one million by 2030.

But the deadliest feature of an automobile-dependent transportation system is the resulting sedentary lifestyle. The World Health Organization calculates physical inactivity is the fourth-leading risk factor for global mortality, causing an estimated 3.2 million deaths annually.

Researchers at St. Michael’s Hospital recently concluded that diabetes and obesity rates are up to 33 per cent higher in suburban areas of Toronto with poor “walkability”. Another study published in Diabetes Care found that new immigrants who moved to a neighborhood with poorly connected streets, low residential density and few stores close by were 50 percent more likely to develop diabetes than long-term residents of walkable areas.

The rise of the private car has greatly undermined active forms of transport. At the start of the 1900s the typical US resident walked three miles a day; today the average is less than a quarter mile. As a result, most adults fail to meet the minimum recommended levels of physical activity (30 min. of light activity five days a week).

The major reason for the reduction in walking is that the private car’s insatiable appetite for space has splintered the landscape. Distances between living spaces, work and commerce have simply become too far to make walking or biking practical.

But there is another reason people have stopped walking: Cars have made us lazy. The more we use them the more we cannot fathom traveling without them. One survey suggests the extent of psychological dependence is extreme. An average American is only willing to walk about a quarter mile and in some instances (such as errands) only 400 feet. Otherwise, the people private vehicles have created, let’s call them Homo Automotivis, take the car.

The true extent of auto-dependence is revealed by drivers willing to wait five minutes for the closest parking spot to where they are going rather than park a block away and walk. The car has produced a state of mind where walking a few extra feet is a defeat.

It has also produced a paranoid state of mind, particularly among those caring for the young. A recent British study of four generations of eight-year-old children in Sheffield found a drastic decline in the average child’s freedom to roam. In 1926 an eight-year-old in the Thomas family was allowed to go six miles from his home unaccompanied, while today’s child, notes The Daily Mail, “is driven the few minutes to school, is taken by car to a safe place to ride his bike and can roam no more than 300 yards from home.”

Canadian children are much less likely to walk to school than their parents’ generation. According to Active Healthy Kids Canada, 58 per cent of today’s parents walked to school when they were young while only 28 per cent of their children do. Partly as a result, only 5 per cent of Canadian children get the recommended 60 minutes of physical activity a day.

Driving children to school is an outgrowth of the greater distances that have come with automotive focused urban planning. But it is not only children living far from school who aren’t walking. One US study found that 87 percent of students living within a mile of school walked in 1969 while today only a third make the same trek.

It is less that children cannot walk to school and more that Homo Automotivis parents, fearing for their children’s safety, prefer to drive them. The most commonly cited fear? Not bullying or kidnapping. The major reason cited by parents for restricting unaccompanied travel: traffic danger.

But when parents use cars to protect their children from other cars, it results in notoriously dangerous schoolyard pickup areas and the very justification for driving their kids to school: a deadly vicious circle.

How have we gotten ourselves into this auto-produced mess? More important, how do we escape?

A  start might be taking death by car as seriously as we take plane crashes.

Yves Engler

Sustainability and capitalism: Can we have it all?

30 Jan

From a speech given at the One World Week Forum at the University of Warwick on January 30, 2014.

Can capitalism solve the problems of global warming and growing inequality?

It seems to me this is like discussing the issue of inappropriate hyper-sexual imagery bombarding 11-year olds and then asking: Can Justin Bieber or Lady Gaga fix the problem?

Real capitalism, not the theoretical version taught in school, is a system of minority rule in which a few people profit at the expense of others.

Real capitalists are always trying to cut their costs and increase their profits, which leads to unemployment, falling wages, rising economic disparity and not paying for the environmental damage they cause.

Private ownership of what are social means of livelihood produces incentives for capitalists to pass along the real costs of industry to communities, workers, future generations and other species.

Private ownership makes growing inequality inevitable. A system can proclaim itself democratic, but if a minority holds most of the economic, and therefore social and political power, that minority will inevitably reward itself, its power will grow and ever-expanding inequality will be the result.

Capitalism is sociopathic. Its ideologues, like the late Margaret Thatcher, reject the social, claiming only individuals exist. Yet capitalism has driven individual producers to the fringes of economies. Most people, ninety per cent in the U.K., depend on wages or salary, working with others in cooperative, coordinated labour — social labour, but directed by wealthy minorities for their own profit.

Capitalism promotes greed. It boasts of this. So why would we be surprised when a small minority with most of the power looks after itself, in effect telling the rest of us: “Screw you and the planet you live on! We don’t care about global warming because we have the money to buy a nice place regardless of how high the oceans rise.”

Capitalism requires constant growth to satisfy its need for more profit. But what happens when the environment needs a smaller human footprint? When, at least in wealthier countries, we must learn to live with less stuff?

History shows capitalism reacts badly to declining markets. When the economy shrinks for a sustained period the system goes into crisis. Banks crash, unemployment grows and capitalists often turn to war to get their profits rising again.

The truth is a sustainable economy is incompatible with a system that constantly demands more profit.

To quote the greatest living English political philosopher, Russell Brand: “I know what the fucking system shouldn’t do. It shouldn’t destroy the planet and shouldn’t create massive economic disparity.”

Like Russell we know what we don’t like. That’s the easy part. But how can we get rid of capitalism and what is the alternative?

To answer we must go back to the issue of power and how to distribute it in a way that promotes the common good, a key element of which is a healthy environment. The best way is through more democracy. REAL democracy. Economic democracy.

Do you want an equitable, sustainable economy? Then help overthrow capitalism and create an economic democracy.

What exactly does this mean?

Let me give you an example: With the one pound one vote system that governs corporate capitalism, Richard Branson, with a net worth of 3.5 billion pounds get 3.5 billion votes. In comparison you (pointing) get 147 and you get 58. Most of you poor buggers owe more than you own so you get no votes at all. Economic democracy means giving everyone the right to a voice and an equal vote in their communities’ economic decisions. When everyone has an equal right in decision-making, economies will be motivated by general wellbeing, not private profit. Economic democracy means eliminating the divide between workers and owners by making everyone an owner. Economic democracy means multiple owning communities  — local, regional, national, international — so that power does not become concentrated in the hands of a single central state. It means that wherever social labour occurs a system of democracy manages the enterprise.

Imagine companies that are democratically run by workers together with a local, regional, national or international government, whichever is appropriate to that enterprise; companies whose mandate it is to promote the common good, rather than the narrow self-interest of rich shareholders; companies that no longer have incentives to destroy the planet, but rather face real penalties for harming the environment.

Now, I know what at least some of you are thinking. This is not realistic. Your ideas are just pie in the sky. But the truth is capitalism has already created what one might call “objective conditions” that do indeed make economic democracy possible. Most people in most countries already depend on social labor. Most of you, if you find paid employment, will be salaried or wage workers. If we choose to fight for it, we can expand one-person, one-vote decision-making into every area where people work collectively, which is most of our economy. If we elect governments committed to it we could pass laws that limit private property to what is truly private and doesn’t give an individual power over others. We could create a system of social ownership with multiple democratic owning communities.

If we accomplish these three things — replacing corporate ownership with social ownership, replacing capitalist entitlement with equal human entitlement and replacing master-servant relations with workplace democracy — the system that drives enterprises to maximize profits, regardless of the consequences, would no longer exist.

Capitalism and sustainability, can you have it all? No. But there is a much better alternative: Economic democracy, a system that will offer authentic jobs, a nourishing work-life balance, your fair share of power and a healthy environment. This sounds like the essentials of a good life to me.

Gary Engler

Video: Understanding Capitalism — Idiocy

5 Jan

Capitalism uses unemployment to keep workers in line

1 Jan

A just society should provide everyone with access to a job yet nearly 2 million Canadians can’t find work.

Officially 6.9 per cent of the Canadian workforce is unemployed. But this number rises to 10.3 per cent when those who’ve given up searching for work are included. Counting “discouraged workers”, about 1.8 million Canadians can’t find a job.

Looked at from a different perspective, StatsCan announced last week that there were six job-seekers for every job available in September. Counting “discouraged workers” that number increases 50 percent.

Incredibly, some consider Canada’s unemployment rate a success. In his October throne speech Stephen Harper misleadingly declared that “Canada now has the best job creation record in the G-7 — one million net new jobs since the depths of the recession.”

This isn’t simply self-promotional rhetoric. Policy moves suggest the government is little concerned by the large number of Canadians out of work. Over the past two years they’ve curtailed Employment Insurance benefits, increased the age at which people can receive Old Age Assistance and slashed public-sector employment.

While the government would never say as much publicly, some among the corporate-funded think tanks argue that having over 1 in 10 Canadian workers out of a job is actually too few. “Canada’s unemployment rate dangerously low” was the title of an April Financial Post article by Philip Cross, Research Coordinator for the Macdonald-Laurier Institute.

Hostility to anything approaching full employment reflects the growth of neoconservative policies. Over the last three decades the idea that everyone should have access to a job has largely disappeared from political discourse. But it used to be fairly common.

In the 1963 election Liberal leader Lester Pearson ran on a “Sixty days of decision” platform that included a pledge of full employment and during his time as Prime Minister Canada’s official unemployment rate dropped below 3%. Similarly, the UN’s International Covenant on Economic, Social and Cultural Rights, which was adopted in 1966 and signed by Canada in 1976, called for the right to employment. It recognizes that “Everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment.”

Instead of focusing on peoples’ right to employment, policymakers today emphasize property rights. In effect, this has meant extending patents, easing safety/environmental regulations on corporations and enabling investors to move to low-wage jurisdictions.

While these policies certainly benefit some, few of us gain our income from owning property. The vast majority of Canadians are wageworkers, their dependents or retired wageworkers. And without a job it’s difficult to get by.

But a job is not only about paying the bills. What one does is generally an important part of a person’s identity and most people want to feel like they are contributing to society. Persistent unemployment can be psychologically damaging for individuals.

It’s also socially damaging. Mass unemployment is a waste of peoples’ energy and ingenuity. Imagine what the 1.8 million Canadians out of work could accomplish if they were mobilized to develop green energy sources or to expand mass transit and childcare services.

But how do we mobilize all this latent human energy. One socially useful way to stimulate employment would be to have the government significantly expand its role in mass transit and childcare. Another would be to push Corporate Canada, which is sitting on over $575 billion in cash, to invest in renewable energy.

It’s time to rekindle the idea that all adults have the right to a job. There are 1.8 million Canadians waiting to better contribute to their society.

Yves Engler

Workers suffer while rich profit from oil sands fever

27 Dec

A clear diagnosis of the Oil Sands fever variant of Dutch Disease may be just what the doctor ordered to rally Canadian workers in the fight against global warming.

A rapid increase in natural resource investment and revenue usually drives up a nation’s currency. This generally makes other industries less competitive and can greatly weaken a country’s manufacturing base.

Widely known as the “Dutch Disease” (named after a period of rapid expansion of the natural gas industry in the Netherlands), this well established economic paradox has become a taboo subject in this country. Canada’s highly class-conscious elite is worried that manufacturing workers might make common cause with environmental groups and even some business sectors to challenge the carbon/profit bomb known as the tar sands.

A recent Pembina Institute/Equiterre report titled Booms, Busts and Bitumen argues that Canada’s economy is facing “Oil Sands fever”. The study points out that the Bank of Canada believes one-third of the Canadian manufacturing sector’s decline has been caused by a more expensive dollar, which rose alongside the price of oil from $.61 US in 2002 to $1.10 US in 2007 (and has hovered near par since). The study concludes that 40% to 75% of the currency increase has been caused by rising commodity prices, principally oil.

The higher price has led to a boom in production and export. Between 2002 and 2012 energy grew from less than 13% of total Canadian exports to over 25%. And if plans to double tar sands production over the next decade are realized, this dependence will increase.

A February Canadian Centre for Policy Alternatives study gives a sense of the jobs impact of Oil Sands fever. The Bitumen Cliff notes: “The forestry sector lost close to 30,000 positions. And the manufacturing industry, of course, haemorrhaged nearly a half-million positions. For every new job created in the petroleum sector during the past decade, 30 have been lost in manufac­turing. Across all of the export-oriented goods industries… net employment declined by almost 520,000 jobs in the past decade.”

While the precise job toll is debatable, the rapid growth in tar sands exports has undoubtedly hurt manufacturers.

Despite the obvious link between tar sands expansion, a higher dollar and a decline in manufacturing, corporate sycophants denounce any politician or established organization that draws attention to the relationship.

Federal Leader of the Opposition Tom Mulcair was aggressively attacked for raising the issue as was former Ontario Premier Dalton McGuinty. In response to the Pembina/Equiterre report Financial Post editor Terence Corcoran called the mainstream Pembina Institute “off-kilter … fomenter of oil sands phobia … keen on triggering a nation-splitting debate over the oil sands.” For his part, Sun Media’s Lorne Gunter wrote: “Left-wing environmentalists should just come clean: they hate the oil industry, they hate profits and love big government.”

Both Corcoran and Gunter cited a recent Canadian Manufacturers and Exporters (CME) study lauding the tar sands. It notes: “In recent years, much of the discussion linking the oil sands with manufacturing has included so-called ‘Dutch disease,’ with any supposed relationship being characterized as inherently negative. While the effect of the rising dollar has impacted the competitiveness of the Canadian manufacturing sector, especially exports, the underlying problem was poor labour productivity, lack of diversity among customers, and lower rates of overall capital investment. While increased investment in the oil sands may have strengthened the Canadian dollar, it is by no means the root cause of the challenges faced by Canadian manufacturing. Rather than having a negative impact on Canadian industry, the oil sands are providing a customer base for manufacturers.”

While most sane people would argue it makes little sense for the lobbying arm of Canada’s export-oriented manufacturers to dismiss oil-fuelled currency increases that have added 5, 10 or 30 percent to their costs, the CME is a highly ideological institution. When environmental or labour regulations add a few percentage points to their costs it goes berserk. For instance, before Parliament ratified the Kyoto Protocol in 2002 the CME claimed that reducing greenhouse gas emissions 6% from 1990 levels by 2012 would cost the country 450,000 manufacturing jobs. (Perhaps CME researchers should check to see if they didn’t mistake a minus sign for a plus symbol since the trashing of Canada’s Kyoto commitments through tar sands expansion has contributed to significant job losses in manufacturing.)

The CME tends to represent the voice of its biggest members, many of whom have plants in other countries. They can shift operations to lower-cost jurisdictions or use the threat of moving jobs to force wage and benefit cuts.

But that’s only part of the explanation for the CME’s pro tar sands position. That organization is in fact a mouthpiece for capitalists who are more widely invested than ever before and thus less wedded to particular firms. Without too much difficulty they can move their capital from lower margin to higher profit industries. It’s all about chasing profits and damn the negative consequences for workers.

In recent years the tar sands have been a major source of profit making. The Parkland Institute estimates that oil sands operators realized pre-tax profits of $260 billion between 1986 and 2011 (the public owners of these resources received less than 10 per cent of that sum). Over the past decade Canadian resource companies’ profit margins have nearly doubled the service, manufacturing and “nonfinancial” sectors of the economy. According to a late 2011 calculation, the market capitalization of fossil fuel companies on the Toronto Stock Exchange topped $379 billion.

The boom in tar sands profits and stock prices clearly benefits leading Canadian capitalists. A recent Canadian Business magazine profile of the “100 richest Canadians” explains: “Collectively, the individuals on the Rich 100 are worth $230 billion, more than the total gross domestic product of many countries in the world, including New Zealand, Ireland and Portugal. And this year has been one of their best ever. Their combined net worth surged by more than 15% … While the actual economies of Canada and the U.S. aren’t faring particularly well, so long as the U.S. Federal Reserve maintains its stimulus program, stock markets will tick higher.”

The “100 richest Canadians” – and the rest of the 0.01% of top shareholders who control most corporations – dominate corporate lobbying associations such as the CME and they also have significant influence with many think tanks, university departments and news outlets. Like their wealthy patrons, these institutions tend to back whatever generates the most profit (that’s the point of capitalism after all). As a result, there’s little interest in discussing the deleterious job impacts of Oil Sands fever.

But environmentalists and union activists should be making common cause by explaining how tar sands profits that go to the rich and powerful cost Canadian workers hundreds of thousands of jobs. Expansion of the tar sands and the resulting bouts of Oil Sands fever may be good for capitalists but it will further weaken the job market and do great harm to Canadian workers.

 Yves Engler

Workers and their unions must fight climate change

24 Dec

For those of us in the labour movement, tis the season to ponder what good our unions can do in the upcoming year and to renew our commitment to a key principle: What we desire for ourselves we wish for all.

At this time of year, while many of us focus on gifts, it is easy to desire the latest gadget, that new car or even a remodelled bathroom. But, most of us would agree, in the grand scheme of human priorities, certain fundamentals are more important than simply acquiring more things.

For example, decent housing, nutritious food, public education, a safe and loving atmosphere to nurture every child and access to quality healthcare would all be understood by most union members as essential, rather than as simply “stuff” that would be nice to possess. In other words, when we come together in a union we acknowledge certain basic social priorities. Thus the first unions fought for a living wage, the eight-hour day, public schools, pensions etc., not simply more money. Without the basics of life, being able to buy more things is meaningless.

And that’s how we need to think about our environment and especially global warming.

There is nothing more important than a healthy environment. Without that, all the other fundamentals — food, housing, education, family, leisure, pensions etc. — are at risk. If human activity, in the pursuit of accumulating more stuff, destroys the liveability of our planet, we will have done a great wrong to all creatures, including ourselves.

And the best evidence we have is as categorical as science gets. Humans have caused climate change by pumping ever more carbon dioxide into the atmosphere and we must quickly cut these emissions.

Here’s how one leading climate change expert put it earlier this month:

“We need a radical plan for cutting emissions to avoid the radical repercussions of climate change,” said professor Kevin Anderson, deputy director of the Tyndall Centre, based at the University of Manchester in England. “To do this, industrial countries have to cut energy use by around 8-10% each year or 60-70% over the decade, and we have to start now.

“Low-carbon supply and incremental reductions are no longer sufficient to avoid dangerous climate change. We have to have early, rapid and deep reductions in emissions and this can only be achieved in the short term through reductions in energy use.”

Will corporations that dominate the world economy provide us with the “rapid and deep reductions in emissions” that scientists tell us must happen soon to avoid environmental catastrophe? No.

Rather than cutting back on emissions we see corporations invest billions in the tar sands, fracking, offshore drilling and digging up more coal, because all are profitable.

Our current economic system requires ever expanding profit. As a result, if corporations were people they would be diagnosed as psychopaths. They are ruthless in the single-minded pursuit of profit. Psychopaths feel no empathy for their victims. They do not care if the consequences of their actions could soon be the overheating of our planet to the degree that our grandchildren no longer have a habitable environment.

So who will fight to protect our planet?

For 175 years unions have fought for justice, democracy and to make life better for all. We helped end child labour and slavery. We fought for universal franchise and equal rights for all. These battles required enormous sacrifices to overcome opposition of the rich and powerful.

Sacrifices will be necessary as well to stop global warming. Many brothers and sisters earn their living extracting oil, building cars and mining coal, industries that must shrink or disappear to save our planet. This raises difficulties inside the labour movement.

But progressive unions were not deterred by similar contradictions in the struggle for civil rights or against sexism and homophobia. Similarly we must not shy away from battling climate change.

Unions must defend our common interests. There is no more important common interest than the health of our environment.

Gary Engler

Canada serves corporate interests around the world

22 Dec

Should the primary purpose of Canadian foreign policy be the promotion of corporate interests?

Canada’s business class certainly seems to think so. And with little political or ideological opposition to this naked self-interest, Harper’s Conservatives seem only too happy to put the full weight of government behind the promotion of private profits.

Recently, the Conservatives announced that “economic diplomacy” will be “the driving force behind the Government of Canada’s activities through its international diplomatic network.” According to their Global Markets Action Plan (GMAP), “All diplomatic assets of the Government of Canada will be marshalled on behalf of the private sector to increase success in doing business abroad.”

The release of GMAP is a crass confirmation of the Conservatives’ pro-corporate foreign policy. In recent years the Conservatives’ have spent tens of millions of dollars to lobby US and European officials on behalf of tar sands interests; expanded arms sales to Middle East monarchies and other leading human rights abusers; strengthened the ties between aid policy and a Canadian mining industry responsible for innumerable abuses.

While some commentators have suggested that GMAP is a “modern” response to China’s international policy, it actually represents a return to a time many consider the high point of unfettered capitalism. Often in the late 1800s wealthy individuals not employed by Ottawa conducted Canadian diplomacy. The owner of the Toronto Globe, George Brown, for instance, negotiated a draft treaty with the U.S. in 1874, while Sandford Fleming, the surveyor of the Canadian Pacific Railway, represented Canada at the 1887 Colonial Conference in London.

From its inception the Canadian foreign service reflected a bias towards economic concerns. There were trade commissioners, for instance, long before ambassadors. By 1907 there were 12 Canadian trade commissions staffed by “commercial agents” located in Sydney, Capetown, Mexico City, Yokohama and numerous European and U.S. cities.

Despite this historic precedent, in the 21st century it should be controversial for a government to openly state that economic considerations drive international policy. Yet criticism of GMAP has been fairly muted, which may reflect how many progressives feel overwhelmed by the Conservatives right-wing aggressiveness in every policy area.

Or perhaps there’s a more fundamental explanation. The mainstream political/media establishment basically agrees with the idea that corporate interests should dominate foreign policy.

In response to GMAP, Postmedia ran a debate between John Manley, head of the Canadian Council of Chief Executives and a member of the advisory panel that helped draw up the Conservatives’ plan, and former foreign minister and leading proponent of the Responsibility to Protect doctrine, Lloyd Axworthy. While Manley lauded the Conservatives’ move, Axworthy criticized it as “bad trade policy. The best way to enlarge your trade prospects and to develop a willingness for agreements and to improve economic exchange is to have a number of contacts to show other countries that you are a willing and co-operative player on matters of security, on matters of human rights, and on matters of development.”

Axworthy did not express principled criticism of the Conservatives’ move; he simply said that “trade prospects” — a euphemism for corporate interests — are best advanced through a multifaceted foreign-policy. Widely lauded by the liberal intelligentsia, Axworthy reflects the critical end of the dominant discussion, which largely takes its cues from the corporate class. And Canada’s business class is more internationally focused than any other G8 country.

Heavily dependent on “free trade” Canadian companies are also major global investors. The world’s largest privately owned security company, GardaWorld, has 45,000 employees operating across the globe while another Montréal-based company, SNC Lavalin, has engineering projects in 100 countries. Corporate Canada’s most powerful sector is also a global force. The big five banks, which all rank among the top 65 in the world, now do a majority of their business outside of this country. Scotiabank, for example, operates in 50 countries.

The mining sector provides the best example of Canadian capital’s international prominence. Three quarters of the world’s mining companies are based in Canada or listed on Canadian stock exchanges. Present in almost every country, Canadian corporations operate thousands of mineral projects abroad.

With $711.6 billion in foreign direct investments last year, Canadian companies push for (and benefit from) Ottawa’s diplomatic, aid and military support. As their international footprint has grown, they’ve put ever more pressure on the government to serve their interests. There is simply no countervailing force calling on the government to advance international climate negotiations, arms control measures or to place constraints on mining companies.

There’s also limited ideological opposition to neoliberalism. Few in Canada promote any alternative to capitalism. Until unions, social groups and activists put forward an alternative economic and social vision it’s hard to imagine that Canadian foreign policy will do much more than promote private corporate interests.

Yves Engler