Showing posts with label Free Trade. Show all posts
Showing posts with label Free Trade. Show all posts

Wednesday, June 17, 2009

Peru Suspends Decree That Fueled Amazon Violence

compiled from reports by Agence France Presse, Indymedia, and Democracy Now!
Peruvian lawmakers suspended one of several controversial laws that eased restrictions on lumber harvesting in the Amazon rain forest, days after it sparked clashes between police and indigenous protesters, killing dozens of people.

The legislature agreed by a 59 to 49 vote to suspend Decree 1090 -- dubbed the "Law of the Jungle" -- that covers forestry and fauna in Peru's northeastern Amazon rain forest, said Javier Velasquez, the head of Peru's single-chamber Congress.

Ten decrees opening indigenous lands to resource extraction are vehemently opposed by the approximately half-million Indians of 65 ethnic groups who live there. They see the development of the jungle as an assault on their way of life and have been holding protests since April across the region. The decrees were issued in 2007 and 2008 by Peruvian president Alan Garcia to bring Peruvian regulations in synch with conditions imposed by the US-Peruvian Free Trade Act.

The Amazon protest peaked Friday and Saturday when some 400 police officers moved in to clear protesters blocking a highway near the northern city of Bagua. Protesters fought back. According to Indymedia, a raid by police to free 38 police hostages taken by protesters resulted in the deaths of nine of the hostages. (AFP reports that the hostages were killed by the protestors). Subsequent reports on Indymedia say that as many as 84 protesters have been killed, with another 150 arrested.

The decrees were originally to be suspended for 90 days, but in the final vote legislators agreed on an indefinite suspension "to negotiate without pressure," said Aurelio Pastor, a legislator with
President Alan Garcia's APRA party.

Angry legislators with the opposition Nationalist Party (PNP) called for the decrees to be overturned, and waved signs as they held a protest in the chamber after the vote.

"No to transnational (corporations) in the Amazon," read one sign. "The land and water are not for sale," read another.

The vote suspending the decree is seen as a compromise allowing the government to resume talks with the protesting indigenous groups who have been blocking key regional highways, said spokesmen for legislators that voted for the measure.

The vote also comes on the eve of a strike called by the country's powerful leftist labor umbrella group, the General Confederation of Workers of Peru (CGTP). Other protest marches, including those held by indigenous protesters in Amazon cities and towns, are planned in Peru's main cities.

Internationally, groups supporting the protesters are calling for solidarity protests at Peruvian consulates and embassies and revocation of the Peru FTA. Amazon Watch asks individuals to send protest emails to key people in the Peruvian government through this link: http://amazonwatch.org/peru-action-alert.php

Meanwhile some 3,000 Indians from 25 ethnic groups continue to block a key Amazon highway linking the cities of Tarapoto and Yurimaguas, some 700 kilometers (435 miles) north of Lima.

"We want an immediate derogation of those laws," said Segundo Pizango, an apu -- indigenous leader -- at a roadblock near Yurimaguas.

The repercussions of the violence have rocked the government, with Women's Affairs Minister Carmen Vildoso resigning Monday in protest over the government's crackdown, and Prime Minister Yehude Simon planning to resign at a future date when protests ease.

The crisis even extended its reach to foreign affairs after Nicaragua granted political asylum to Alberto Pizango, the main indigenous protest leader, who earlier took refuge in Managua's
embassy in Lima. The Garcia administration has issued an arrest warrant for Pizango on charges of sedition, conspiracy and rebellion.


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Thursday, April 16, 2009

The Real Boston Tea Party was an Anti-Corporate Revolt

by Thom Hartmann. Posted on Wednesday, April 15, 2009 at CommonDreams.org

CNBC Correspondent Rick Santelli called for a "Chicago Tea Party" on Feb 19th in protesting President Obama's plan to help homeowners in trouble. Santelli's call was answered by the right-wing group FreedomWorks, which funds campaigns promoting big business interests, and is the opposite of what the real Boston Tea Party was. FreedomWorks was funded in 2004 by Dick Armey (former Republican House Majority leader & lobbyist); consolidated Citizens for a Sound Economy, funded by the Koch family; and Empower America, a lobbying firm, that had fought against health care and minimum-wage efforts while hailing deregulation.

Anti-tax "tea party" organizers are delivering one million tea bags to a Washington, D.C., park Wednesday morning - to promote protests across the country by people they say are fed up with high taxes and excess spending.

The real Boston Tea Party was a protest against huge corporate tax cuts for the British East India Company, the largest trans-national corporation then in existence. This corporate tax cut threatened to decimate small Colonial businesses by helping the BEIC pull a Wal-Mart against small entrepreneurial tea shops, and individuals began a revolt that kicked-off a series of events that ended in the creation of The United States of America.

They covered their faces, massed in the streets, and destroyed the property of a giant global corporation. Declaring an end to global trade run by the East India Company that was destroying local economies, this small, masked minority started a revolution with an act of rebellion later called the Boston Tea Party.

On a cold November day in 1773, activists gathered in a coastal town. The corporation had gone too far, and the two thousand people who'd jammed into the meeting hall were torn as to what to do about it. Unemployment was exploding and the economic crisis was deepening; corporate crime, governmental corruption spawned by corporate cash, and an ethos of greed were blamed. "Why do we wait?" demanded one at the meeting, a fisherman named George Hewes. "The more we delay, the more strength is acquired" by the company and its puppets in the government. "Now is the time to prove our courage," he said. Soon, the moment came when the crowd decided for direct action and rushed into the streets.

That is how I tell the story of the Boston Tea Party, now that I have read a first-person account of it. While striving to understand my nation's struggles against corporations, in a rare book store I came upon a first edition of "Retrospect of the Boston Tea Party with a Memoir of George R.T. Hewes, a Survivor of the Little Band of Patriots Who Drowned the Tea in Boston Harbor in 1773," and I jumped at the chance to buy it. Because the identities of the Boston Tea Party participants were hidden (other than Samuel Adams) and all were sworn to secrecy for the next 50 years, this account is the only first-person account of the event by a participant that exists. As I read, I began to understand the true causes of the American Revolution.

I learned that the Boston Tea Party resembled in many ways the growing modern-day protests against transnational corporations and small-town efforts to protect themselves from chain-store retailers or factory farms. The Tea Party's participants thought of themselves as protesters against the actions of the multinational East India Company.

Although schoolchildren are usually taught that the American Revolution was a rebellion against "taxation without representation," akin to modern day conservative taxpayer revolts, in fact what led to the revolution was rage against a transnational corporation that, by the 1760s, dominated trade from China to India to the Caribbean, and controlled nearly all commerce to and from North America, with subsidies and special dispensation from the British crown.

Hewes notes: "The [East India] Company received permission to transport tea, free of all duty, from Great Britain to America..." allowing it to wipe out New England-based tea wholesalers and mom-and-pop stores and take over the tea business in all of America. "Hence," wrote, "it was no longer the small vessels of private merchants, who went to vend tea for their own account in the ports of the colonies, but, on the contrary, ships of an enormous burthen, that transported immense quantities of this commodity ... The colonies were now arrived at the decisive moment when they must cast the dye, and determine their course ... "

A pamphlet was circulated through the colonies called The Alarm and signed by an enigmatic "Rusticus." One issue made clear the feelings of colonial Americans about England's largest transnational corporation and its behavior around the world: "Their Conduct in Asia, for some Years past, has given simple Proof, how little they regard the Laws of Nations, the Rights, Liberties, or Lives of Men. They have levied War, excited Rebellions, dethroned lawful Princes, and sacrificed Millions for the Sake of Gain. The Revenues of Mighty Kingdoms have entered their Coffers. And these not being sufficient to glut their Avarice, they have, by the most unparalleled Barbarities, Extortions, and Monopolies, stripped the miserable Inhabitants of their Property, and reduced whole Provinces to Indigence and Ruin. Fifteen hundred Thousands, it is said, perished by Famine in one Year, not because the Earth denied its Fruits; but [because] this Company and their Servants engulfed all the Necessaries of Life, and set them at so high a Price that the poor could not purchase them."

After protesters had turned back the Company's ships in Philadelphia and New York, Hewes writes, "In Boston the general voice declared the time was come to face the storm."

The citizens of the colonies were preparing to throw off one of the corporations that for almost 200 years had determined nearly every aspect of their lives through its economic and political power. They were planning to destroy the goods of the world's largest multinational corporation, intimidate its employees, and face down the guns of the government that supported it.

The queen's corporation
The East India Company's influence had always been pervasive in the colonies. Indeed, it was not the Puritans but the East India Company that founded America. The Puritans traveled to America on ships owned by the East India Company, which had already established the first colony in North America, at Jamestown, in the Company-owned Commonwealth of Virginia, stretching from the Atlantic Ocean to the Mississippi. The commonwealth was named after the "Virgin Queen," Elizabeth, who had chartered the corporation.

Elizabeth was trying to make England a player in the new global trade sparked by the European "discovery" of the Americas. The wealth Spain began extracting from the New World caught the attention of the European powers. In many European countries, particularly Holland and France, consortiums were put together to finance ships to sail the seas. In 1580, Queen Elizabeth became the largest shareholder in The Golden Hind, a ship owned by Sir Francis Drake.

The investment worked out well for Queen Elizabeth. There's no record of exactly how much she made when Drake paid her share of the Hind's dividends to her, but it was undoubtedly vast, since Drake himself and the other minor shareholders all received a 5000 percent return on their investment. Plus, because the queen placed a maximum loss to the initial investors of their investment amount only, it was a low-risk investment (for the investors at least-creditors, such as suppliers of provisions for the voyages or wood for the ships, or employees, for example, would be left unpaid if the venture failed, just as in a modern-day corporation). She was endorsing an investment model that led to the modern limited-liability corporation.

After making a fortune on Drake's expeditions, Elizabeth started looking for a more permanent arrangement. She authorized a group of 218 London merchants and noblemen to form a corporation. The East India Company was born on December 31, 1600.

By the 1760s, the East India Company's power had grown massive and worldwide. However, this rapid expansion, trying to keep ahead of the Dutch trading companies, was a mixed blessing, as the company went deep in debt to support its growth, and by 1770 found itself nearly bankrupt.

The company turned to a strategy that multinational corporations follow to this day: They lobbied for laws that would make it easy for them to put their small-business competitors out of business.

Most of the members of the British government and royalty (including the king) were stockholders in the East India Company, so it was easy to get laws passed in its interests. Among the Company's biggest and most vexing problems were American colonial entrepreneurs, who ran their own small ships to bring tea and other goods directly into America without routing them through Britain or through the Company. Between 1681 and 1773, a series of laws were passed granting the Company monopoly on tea sold in the American colonies and exempting it from tea taxes. Thus, the Company was able to lower its tea prices to undercut the prices of the local importers and the small tea houses in every town in America. But the colonists were unappreciative of their colonies being used as a profit center for the multinational corporation.

Boston's million-dollar tea party
And so, Hewes says, on a cold November evening of 1773, the first of the East India Company's ships of tax-free tea arrived. The next morning, a pamphlet was widely circulated calling on patriots to meet at Faneuil Hall to discuss resistance to the East India Company and its tea. "Things thus appeared to be hastening to a disastrous issue. The people of the country arrived in great numbers, the inhabitants of the town assembled. This assembly, on the 16th of December 1773, was the most numerous ever known, there being more than 2000 from the country present," said Hewes.

The group called for a vote on whether to oppose the landing of the tea. The vote was unanimously affirmative, and it is related by one historian of that scene "that a person disguised after the manner of the Indians, who was in the gallery, shouted at this juncture, the cry of war; and that the meeting dissolved in the twinkling of an eye, and the multitude rushed in a mass to Griffin's wharf."

That night, Hewes dressed as an Indian, blackening his face with coal dust, and joined crowds of other men in hacking apart the chests of tea and throwing them into the harbor. In all, the 342 chests of tea-over 90,000 pounds-thrown overboard that night were enough to make 24 million cups of tea and were valued by the East India Company at 9,659 Pounds Sterling or, in today's currency, just over $1 million.

In response, the British Parliament immediately passed the Boston Port Act stating that the port of Boston would be closed until the citizens of Boston reimbursed the East India Company for the tea they had destroyed. The colonists refused. A year and a half later, the colonists would again state their defiance of the East India Company and Great Britain by taking on British troops in an armed conflict at Lexington and Concord (the "shots heard 'round the world") on April 19, 1775.

That war-finally triggered by a transnational corporation and its government patrons trying to deny American colonists a fair and competitive local marketplace-would end with independence for the colonies.

The revolutionaries had put the East India Company in its place with the Boston Tea Party, and that, they thought, was the end of that. Unfortunately, the Boston Tea Party was not the end; within 150 years, during the so-called Gilded Age, powerful rail, steel, and oil interests would rise up to begin a new form of oligarchy, capturing the newly-formed Republican Party in the 1880s, and have been working to establish a permanent wealthy and ruling class in this country ever since.

Thom Hartmann (thom at thomhartmann.com) is a Project Censored Award-winning New York Times best-selling author, and host of a nationally syndicated daily progressive talk program The Thom Hartmann Show. His newest book is
Threshold: The Crisis of Western Culture. Learn more at www.thomhartmann.com.


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Thursday, March 5, 2009

Michael Parenti: Capitalism's Self-inflicted Apocalypse

Posted January 2009 at michaelparenti.org

After the overthrow of communist governments in Eastern Europe, capitalism was paraded as the indomitable system that brings prosperity and democracy, the system that would prevail unto the end of history.

The present economic crisis, however, has convinced even some prominent free-marketeers that something is gravely amiss. Truth be told, capitalism has yet to come to terms with several historical forces that cause it endless trouble: democracy, prosperity, and capitalism itself, the very entities that capitalist rulers claim to be fostering.

Plutocracy vs. Democracy

Let us consider democracy first. In the United States we hear that capitalism is wedded to democracy, hence the phrase, "capitalist democracies." In fact, throughout our history there has been a largely antagonistic relationship between democracy and capital concentration. Some eighty years ago Supreme Court Justice Louis Brandeis commented, "We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can’t have both." Moneyed interests have been opponents not proponents of democracy.

The Constitution itself was fashioned by affluent gentlemen who gathered in Philadelphia in 1787 to repeatedly warn of the baneful and dangerous leveling effects of democracy. The document they cobbled together was far from democratic, being shackled with checks, vetoes, and requirements for artificial super majorities, a system designed to blunt the impact of popular demands.

In the early days of the Republic the rich and well-born imposed property qualifications for voting and officeholding. They opposed the direct election of candidates (note, their Electoral College is still with us). And for decades they resisted extending the franchise to less favored groups such as propertyless working men, immigrants, racial minorities, and women.

Today conservative forces continue to reject more equitable electoral features such as proportional representation, instant runoff, and publicly funded campaigns. They continue to create barriers to voting, be it through overly severe registration requirements, voter roll purges, inadequate polling accommodations, and electronic voting machines that consistently "malfunction" to the benefit of the more conservative candidates.

At times ruling interests have suppressed radical publications and public protests, resorting to police raids, arrests, and jailings—applied most recently with full force against demonstrators in St. Paul, Minnesota, during the 2008 Republican National Convention.

The conservative plutocracy also seeks to rollback democracy’s social gains, such as public education, affordable housing, health care, collective bargaining, a living wage, safe work conditions, a non-toxic sustainable environment; the right to privacy, the separation of church and state, freedom from compulsory pregnancy, and the right to marry any consenting adult of one’s own choosing.

About a century ago, US labor leader Eugene Victor Debs was thrown into jail during a strike. Sitting in his cell he could not escape the conclusion that in disputes between two private interests, capital and labor, the state was not a neutral arbiter. The force of the state--with its police, militia, courts, and laws—was unequivocally on the side of the company bosses. From this, Debs concluded that capitalism was not just an economic system but an entire social order, one that rigged the rules of democracy to favor the moneybags.

Capitalist rulers continue to pose as the progenitors of democracy even as they subvert it, not only at home but throughout Latin America, Africa, Asia, and the Middle East. Any nation that is not "investor friendly," that attempts to use its land, labor, capital, natural resources, and markets in a self-developing manner, outside the dominion of transnational corporate hegemony, runs the risk of being demonized and targeted as "a threat to U.S. national security."

Democracy becomes a problem for corporate America not when it fails to work but when it works too well, helping the populace move toward a more equitable and livable social order, narrowing the gap, however modestly, between the superrich and the rest of us. So democracy must be diluted and subverted, smothered with disinformation, media puffery, and mountains of campaign costs; with rigged electoral contests and partially disfranchised publics, bringing faux victories to more or less politically safe major-party candidates.

Capitalism vs. Prosperity
The corporate capitalists no more encourage prosperity than do they propagate democracy. Most of the world is capitalist, and most of the world is neither prosperous nor particularly democratic. One need only think of capitalist Nigeria, capitalist Indonesia, capitalist Thailand, capitalist Haiti, capitalist Colombia, capitalist Pakistan, capitalist South Africa, capitalist Latvia, and various other members of the Free World--more accurately, the Free Market World.

A prosperous, politically literate populace with high expectations about its standard of living and a keen sense of entitlement, pushing for continually better social conditions, is not the plutocracy’s notion of an ideal workforce and a properly pliant polity. Corporate investors prefer poor populations. The poorer you are, the harder you will work—for less. The poorer you are, the less equipped you are to defend yourself against the abuses of wealth.

In the corporate world of "free-trade," the number of billionaires is increasing faster than ever while the number of people living in poverty is growing at a faster rate than the world’s population. Poverty spreads as wealth accumulates.

Consider the United States. In the last eight years alone, while vast fortunes accrued at record rates, an additional six million Americans sank below the poverty level; median family income declined by over $2,000; consumer debt more than doubled; over seven million Americans lost their health insurance, and more than four million lost their pensions; meanwhile homelessness increased and housing foreclosures reached pandemic levels.

It is only in countries where capitalism has been reined in to some degree by social democracy that the populace has been able to secure a measure of prosperity; northern European nations such as Sweden, Norway, Finland, and Denmark come to mind. But even in these social democracies popular gains are always at risk of being rolled back.

It is ironic to credit capitalism with the genius of economic prosperity when most attempts at material betterment have been vehemently and sometimes violently resisted by the capitalist class. The history of labor struggle provides endless illustration of this.

To the extent that life is bearable under the present U.S. economic order, it is because millions of people have waged bitter class struggles to advance their living standards and their rights as citizens, bringing some measure of humanity to an otherwise heartless politico-economic order.

A Self-devouring Beast
The capitalist state has two roles long recognized by political thinkers. First, like any state it must provide services that cannot be reliably developed through private means, such as public safety and orderly traffic. Second, the capitalist state protects the haves from the have-nots, securing the process of capital accumulation to benefit the moneyed interests, while heavily circumscribing the demands of the working populace, as Debs observed from his jail cell.

There is a third function of the capitalist state seldom mentioned. It consists of preventing the capitalist system from devouring itself. Consider the core contradiction Karl Marx pointed to: the tendency toward overproduction and market crisis. An economy dedicated to speedups and wage cuts, to making workers produce more and more for less and less, is always in danger of a crash. To maximize profits, wages must be kept down. But someone has to buy the goods and services being produced. For that, wages must be kept up. There is a chronic tendency—as we are seeing today—toward overproduction of private sector goods and services and underconsumption of necessities by the working populace.

In addition, there is the frequently overlooked self-destruction created by the moneyed players themselves. If left completely unsupervised, the more active command component of the financial system begins to devour less organized sources of wealth.

Instead of trying to make money by the arduous task of producing and marketing goods and services, the marauders tap directly into the money streams of the economy itself. During the 1990s we witnessed the collapse of an entire economy in Argentina when unchecked free marketeers stripped enterprises, pocketed vast sums, and left the country’s productive capacity in shambles. The Argentine state, gorged on a heavy diet of free-market ideology, faltered in its function of saving capitalism from the capitalists.

Some years later, in the United States, came the multi-billion-dollar plunder perpetrated by corporate conspirators at Enron, WorldCom, Harkin, Adelphia, and a dozen other major companies. Inside players like Ken Lay turned successful corporate enterprises into sheer wreckage, wiping out the jobs and life savings of thousands of employees in order to pocket billions.

These thieves were caught and convicted. Does that not show capitalism’s self-correcting capacity? Not really. The prosecution of such malfeasance— in any case coming too late—was a product of democracy’s accountability and transparency, not capitalism's. Of itself the free market is an amoral system, with no strictures save caveat emptor.

In the meltdown of 2008-09 the mounting financial surplus created a problem for the moneyed class: there were not enough opportunities to invest. With more money than they knew what to do with, big investors poured immense sums into nonexistent housing markets and other dodgy ventures, a legerdemain of hedge funds, derivatives, high leveraging, credit default swaps, predatory lending, and whatever else.

Among the victims were other capitalists, small investors, and the many workers who lost billions of dollars in savings and pensions. Perhaps the premiere brigand was Bernard Madoff. Described as "a longstanding leader in the financial services industry," Madoff ran a fraudulent fund that raked in $50 billion from wealthy investors, paying them back "with money that wasn’t there," as he himself put it. The plutocracy devours its own children.

In the midst of the meltdown, at an October 2008 congressional hearing, former chair of the Federal Reserve and orthodox free-market devotee Alan Greenspan confessed that he had been mistaken to expect moneyed interests--groaning under an immense accumulation of capital that needs to be invested somewhere--to suddenly exercise self-restraint.

The classic laissez-faire theory is even more preposterous than Greenspan made it. In fact, the theory claims that everyone should pursue their own selfish interests without restraint. This unbridled competition supposedly will produce maximum benefits for all because the free market is governed by a miraculously benign “invisible hand” that optimizes collective outputs. (“Greed is good.”)

Is the crisis of 2008-09 caused by a chronic tendency toward overproduction and hyper-financial accumulation, as Marx would have it? Or is it the outcome of the personal avarice of people like Bernard Madoff? In other words, is the problem systemic or individual? In fact, the two are not mutually exclusive. Capitalism breeds the venal perpetrators, and rewards the most unscrupulous among them. The crimes and crises are not irrational departures from a rational system, but the converse: they are the rational outcomes of a basically irrational and amoral system.

Worse still, the ensuing multi-billion dollar government bailouts are themselves being turned into an opportunity for pillage. Not only does the state fail to regulate, it becomes itself a source of plunder, pulling vast sums from the federal money machine, leaving the taxpayers to bleed.

Those who scold us for "running to the government for a handout" are themselves running to the government for a handout. Corporate America has always enjoyed grants-in-aid, loan guarantees, and other state and federal subventions. But the 2008-09 "rescue operation" offered a record feed at the public trough. More than $350 billion was dished out by a right-wing lame-duck Secretary of the Treasury to the biggest banks and financial houses without oversight--not to mention the more than $4 trillion that has come from the Federal Reserve. Most of the banks, including JPMorgan Chase and Bank of New York Mellon, stated that they had no intention of letting anyone know where the money was going.

The big bankers used some of the bailout, we do know, to buy up smaller banks and prop up banks overseas. CEOs and other top banking executives are spending bailout funds on fabulous bonuses and lavish corporate spa retreats. Meanwhile, big bailout beneficiaries like Citigroup and Bank of America laid off tens of thousands of employees, inviting the question: why were they given all that money in the first place?

While hundreds of billions were being doled out to the very people who had caused the catastrophe, the housing market continued to wilt, credit remained paralyzed, unemployment worsened, and consumer spending sank to record lows.

In sum, free-market corporate capitalism is by its nature a disaster waiting to happen. Its essence is the transformation of living nature into mountains of commodities and commodities into heaps of dead capital. When left entirely to its own devices, capitalism foists its diseconomies and toxicity upon the general public and upon the natural environment--and eventually begins to devour itself.

The immense inequality in economic power that exists in our capitalist society translates into a formidable inequality of political power, which makes it all the more difficult to impose democratic regulations.

If the paladins of Corporate America want to know what really threatens "our way of life," it is their way of life, their boundless way of pilfering their own system, destroying the very foundation on which they stand, the very community on which they so lavishly feed.


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Thursday, January 29, 2009

'Globalization From Below' Tackles the 'Great Recession'

The economic crisis makes it possible to put proposals on the table that have long been ruled inadmissible.

Can globalization from below really provide an alternative solution to the great recession?


by Jeremy Brecher, Brendan Smith, and Tim Costello, posted on Commondreams.org on January 26, 2009

[As tens of thousands of activists from around the world gather in Belem, Brazil for the World Social Forum, social movements everywhere are debating how to respond to the ever-deepening economic crisis. This article is excerpted from the longer Discussion Paper "GLOBALIZATION FROM BELOW" TACKLES THE "GREAT RECESSION" prepared by Global Labor Strategies.]

At the pit of the Great Depression in 1930, an American country music group named the Carter Family recorded a song called The Worried Man Blues. It began:

"I went down to the river and I lay down to sleep
When I woke up there were shackles on my feet."

Though many subsequent verses describe the horrific outcome, there is no explanation of what had happened or why – just an awakening to a seemingly endless catastrophe. The song immediately became an unprecedented national hit. It's hard to imagine that its success didn't have something to do with capturing the sense of being the helpless victim of incomprehensible disaster that so many felt in the face of the Great Depression.

The seemingly sudden collapse of the global economy in 2008 has similarly left millions, indeed billions of people all over the world a victims of a catastrophe that appears both inexplicable and unending.

But what's now being dubbed the "Great Recession" is neither incomprehensible nor irremediable. On the contrary, it can be understood as an expectable result of a capitalism that has been globalized and at the same time "freed" by neoliberalism of control in the public interest.

The economic globalization that transformed the world at the turn of the century promised, according to its advocates, a glorious vista of prosperity that would provide unprecedented economic growth and raise billions of people out of poverty. In practice it generated personal and national insecurity, growing inequality, and a race to the bottom in which every community, nation, and workgroup had to reduce its social, environmental, and labor conditions to that of its most impoverished competitor.

But economic globalization also gave birth to a new convergence of global social forces that opposed this kind of globalization. People all over the world fought back against this "globalization from above" with their own "globalization from below." They used asymmetrical strategies of linking across the borders of nations and constituencies to become a counter power to the advocates of globalization. They created a movement – variously known as the global justice movement, the anti-globalization movement, global civil society, or as we call it, "globalization from below" -- that some in the media even characterized as "the world's other superpower."

The anti-globalization/global justice/globalization-from-below movement developed in response to the expansive phase of globalization and neoliberalism. Now the global economy has entered the most severe financial crisis since the Great Depression. The financial crisis has turned out to be the start of a cascade of other economic crises that are reshaping the global economy as definitively as an earthquake reshapes a city. Current leaders of the world's nations have utterly failed to develop a solution. The likely impact of their failure on ordinary people around the world is incalculable.

The advocates of globalization from above propounded as an article of faith that markets are self-regulating and that all would be for the best in the best of all possible worlds if only governments, labor unions, citizens organizations, and the unruly mob let them alone to do their thing.

The times they are a-changing. US government officials long known as market fundamentalists seize banks, buy mortgage and insurance companies, and commit $7.7 trillion – half of the US annual product -- to government intervention in financial markets.

The Clintonite "moderates" who once gutted the social safety net and sacrificed commitments to jobs programs in order to build up budget surpluses now propose vast public works programs financed by budget deficits. The IMF, scourge of "irresponsible" countries that didn't balance their budgets, advocates a trillion-plus dollars in global government deficits and claims to have replaced "structural adjustment conditionalities" with condition-free loans.

These programs may well fail in halting the downward spiral of the global economy. But they open the door to new forms of more social and public economy. That's one reason conservatives normally oppose them – and one indicator of how serious the present crisis really is. The economic crisis makes it possible to put proposals on the table that have long been ruled inadmissible.

While economists have asserted with great confidence that one after another trillion dollar "solution" would save the global economy, one after another has failed, raising the specter that it cannot be saved in its present form. Peter Boon and Simon Johnson of the website baselinescenario.com recently raised that possibility in the Wall Street Journal. They note that economists generally believe even the Great Depression of the 1930s could have been stopped by proper monetary policy. But, Boon and Johnson argue, governments may simply not be able to prevent such huge deflationary spirals. "Perhaps the events of 1929 produced an unstoppable whirlwind of deleveraging which no set of policy measures would truly be able to prevent." Their implication seems evident: The same could be true today.

The multi-trillion dollar rescues and bail-outs so far just attempt – possibly futilely -- to save the status quo. But what can we do if the status quo can't be saved? Can globalization from below really provide an alternative solution to the great recession?

It has already started to do so. A landmark was the meeting of a group of social movements and NGOs in October, 2008 on the occasion of the Asia-Europe People's Forum in Beijing that developed a sketch for a "transitional program for radical economic transformation." The "Beijing Declaration" laid out alternatives that are "practical and immediately feasible" that put the "well-being of people and the planet at their center." This requires "democratic control over financial and economic institutions." It includes proposals for finance, taxation, public spending and investment, international trade and finance, environment, and agriculture and industry. It provides a brilliant first expression of a globalization-from-below alternative to the failures of globalization from above.

The basic vision of the Declaration is summed up in its title: "The global economic crisis: An historic opportunity for transformation." Its goal, in other words, is not to shore up the status quo and return to the destructive form of globalization that preceded the crisis. Its objective is almost the opposite of the eight-trillion-dollars-and-counting of bail-outs, rescues, and subsidies provided to business in recent months by the world's governments. It aims instead to provide "a transitional program for radical economic transformation" to a "different kind of political and economic order."

"Transitional program" may sound like antiquated socialist rhetoric – a call to take state power and nationalize industry. But both the goals and the methods are very different. Indeed, the Declaration points a path between merely reestablishing the status quo and assuming that actions must be "revolutionary or nothing."

No "maximalism" here. "To capture people's attention and support" the Declaration argues, proposals must be "practical and immediately feasible." That is possible because, even under the domination of globalization from above, people have been developing alternatives within the world's nooks and crannies. The unfolding economic crisis provides the opportunity "to put into the public domain some of the inspiring and feasible alternatives many of us have been working on for decades."

The goal linking these alternatives is "the well-being of people and the planet." And that requires a focus not primarily on restoring the financial system, but first and foremost on the great human and environmental crisis the world is facing in relation to food, climate, and energy.

Such common human interests are not the principal concerns of the people and institutions that now call the shots in national governments or the global economy. The "well-being of people and the planet" will not be achieved by economic jiggering. Instead, "democratic control over financial and economic institutions are required."

The vision of such democratic control, however, is not of either a centralized national or a centralized global economy. It is closer to what Walden Bello elsewhere described as the "co-existence" of a variety of "international organizations, agreements and regional groupings" that would allow "a more fluid, less structured, more pluralistic world with multiple checks and balances" in which nations and communities can "carve out the space to develop based on their values, their rhythms, and the strategies of their choice."

The current economic crisis creates opportunity for transformation, the Declaration argues, because it severely weakens the power of the US, the EU, and the IMF, World Bank, and WTO. It undermines the legitimacy of the neo-liberal paradigm. And, where global pseudo-consensus once asserted that "there is no alternative" to liberal capitalism, the future of capitalism is now becoming an open question.

Of course, this moment can also be seized by "fascist, right wing populist, xenophobic groups" who will try to "take advantage of people's fear and anger for reactionary ends."

What is the agency for pursuing constructive alternatives and resisting destructive ones? It starts with the "powerful movements against neo-liberalism" that have been built over past decades. These will grow along with public anger at the abuse of public funds for private subsidy, the crises of food, energy, and the environment, and the deepening recession.

As social movements from around the world converge in Belem, Brazil at the end of January for the World Social Forum, they will be in a position to take the next step toward realizing their potential as the world's "other superpower." Indeed, it is the convergence of the already existing networks and understandings of globalization from below with the new outrage at what neo-liberalism has done to the world that provides the opportunity to show that another world is indeed possible.

Tim Costello, Jeremy Brecher and Brendan Smith are the co-founders of Global Labor Strategies, a resource center providing research and analysis on globalization, trade and labor issues. GLS staff have published many previous reports on a variety of labor-related issues, including Outsource This! American Workers, the Jobs Deficit, and the Fair Globalization Solution, Contingent Workers Fight For Fairness, and Fight Where You Stand!: Why Globalization Matters in Your Community and Workplace. They have also written and produced the Emmy-nominated PBS documentary Global Village or Global Pillage? GLS has offices in New York, Boston, and Montevideo, Uruguay. For more on GLS visit: www.laborstrategies.blogs.com or email smithb28@gmail.com.


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Wednesday, November 19, 2008

Naomi Klein: "In Praise of a Rocky Transition"

From the December 1 print edition of The Nation, and available online here. Also check out Naomi's interview with Amy Goodman on Democracy Now, posted at Alternet. Talking with Goodman, Klein points out that "It's not the banks that have been partially nationalized; it's Treasury that has been partially privatized by the very banks that created the crisis in the first place."

The more details emerge, the clearer it becomes that Washington's handling of the Wall Street bailout is not merely incompetent. It is borderline criminal.

In a moment of high panic in late September, the US Treasury unilaterally pushed through a radical change in how bank mergers are taxed--a change long sought by the industry. Despite the fact that this move will deprive the government of as much as $140 billion in tax revenue, lawmakers found out only after the fact. According to the Washington Post, more than a dozen tax attorneys agree that "Treasury had no authority to issue the [tax change] notice."

Of equally dubious legality are the equity deals Treasury has negotiated with many of the country's banks. According to Congressman Barney Frank, one of the architects of the legislation that enables the deals, "Any use of these funds for any purpose other than lending--for bonuses, for severance pay, for dividends, for acquisitions of other institutions, etc.--is a violation of the act." Yet this is exactly how the funds are being used.

Then there is the nearly $2 trillion the Federal Reserve has handed out in emergency loans. Incredibly, the Fed will not reveal which corporations have received these loans or what it has accepted as collateral. Bloomberg News believes that this secrecy violates the law and has filed a federal suit demanding full disclosure.

Despite all of this potential lawlessness, the Democrats are either openly defending the administration or refusing to intervene. "There is only one president at a time," we hear from Barack Obama. That's true. But every sweetheart deal the lame-duck Bush administration makes threatens to hobble Obama's ability to make good on his promise of change. To cite just one example, that $140 billion in missing tax revenue is almost the same sum as Obama's renewable energy program. Obama owes it to the people who elected him to call this what it is: an attempt to undermine the electoral process by stealth.

Yes, there is only one president at a time, but that president needed the support of powerful Democrats, including Obama, to get the bailout passed. Now that it is clear that the Bush administration is violating the terms to which both parties agreed, the Democrats have not just the right but a grave responsibility to intervene forcefully.

I suspect that the real reason the Democrats are so far failing to act has less to do with presidential protocol than with fear: fear that the stock market, which has the temperament of an overindulged 2-year-old, will throw one of its world-shaking tantrums. Disclosing the truth about who is receiving federal loans, we are told, could cause the cranky market to bet against those banks. Question the legality of equity deals and the same thing will happen. Challenge the $140 billion tax giveaway and mergers could fall through. "None of us wants to be blamed for ruining these mergers and creating a new Great Depression," explained one unnamed Congressional aide.

More than that, the Democrats, including Obama, appear to believe that the need to soothe the market should govern all key economic decisions in the transition period. Which is why, just days after a euphoric victory for "change," the mantra abruptly shifted to "smooth transition" and "continuity."

Take Obama's pick for chief of staff. Despite the Republican braying about his partisanship, Rahm Emanuel, the House Democrat who received the most donations from the financial sector, sends an unmistakably reassuring message to Wall Street. When asked on This Week With George Stephanopoulos whether Obama would be moving quickly to increase taxes on the wealthy, as promised, Emanuel pointedly did not answer the question.

This same market-coddling logic should, we are told, guide Obama's selection of treasury secretary. Fox News's Stuart Varney explained that Larry Summers, who held the post under Clinton, and former Fed chair Paul Volcker would both "give great confidence to the market." We learned from MSNBC's Joe Scarborough that Summers is the man "the Street would like the most."

Let's be clear about why. "The Street" would cheer a Summers appointment for exactly the same reason the rest of us should fear it: because traders will assume that Summers, champion of financial deregulation under Clinton, will offer a transition from Henry Paulson so smooth we will barely know it happened. Someone like FDIC chair Sheila Bair, on the other hand, would spark fear on the Street--for all the right reasons.

One thing we know for certain is that the market will react violently to any signal that there is a new sheriff in town who will impose serious regulation, invest in people and cut off the free money for corporations. In short, the markets can be relied on to vote in precisely the opposite way that Americans have just voted. (A recent USA Today/Gallup poll found that 60 percent of Americans strongly favor "stricter regulations on financial institutions," while just 21 percent support aid to financial companies.)

There is no way to reconcile the public's vote for change with the market's foot-stomping for more of the same. Any and all moves to change course will be met with short-term market shocks. The good news is that once it is clear that the new rules will be applied across the board and with fairness, the market will stabilize and adjust. Furthermore, the timing for this turbulence has never been better. Over the past three months, we've been shocked so frequently that market stability would come as more of a surprise. That gives Obama a window to disregard the calls for a seamless transition and do the hard stuff first. Few will be able to blame him for a crisis that clearly predates him, or fault him for honoring the clearly expressed wishes of the electorate. The longer he waits, however, the more memories fade.

When transferring power from a functional, trustworthy regime, everyone favors a smooth transition. When exiting an era marked by criminality and bankrupt ideology, a little rockiness at the start would be a very good sign.


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Thursday, November 13, 2008

Wall Street Journal: How to Quench the World's Thirst

The Wall Street Journal interviews Maude Barlow, the U.N.'s new water adviser
by Alexandra Alter

Water has become a booming $500 billion industry, by some estimates. Economists and investors call it "the new oil" and "blue gold."

Texas oilman T. Boone Pickens, who has bought water rights for a chunk of the Ogallala aquifer in Texas and owns more water than any individual in the United States, has said the natural resource should be treated like any other commodity -- bought and sold for a profit.

In the U.S., companies such as Nestlé, which owns Poland Spring, extract hundreds of millions of gallons of groundwater a year. The companies often pay little to nothing for the water that they bottle and sell.

But where some see profits, others see peril. The world is running out of fresh H20, which accounts for just 3% of the earth's water. Recent moves by multinational corporations to privatize water sources could spell disaster for poor countries and residents with no means to pay.

In Bolivia, price spikes following water privatization led to riots in 2000; eventually, Bolivia expelled Bechtel, the engineering company that the government had contracted to take over management of the municipal water supply in the city of Cochabamba. Similar clashes over privatization and price hikes have broken out in Argentina, Uruguay, South Africa and Mali.

Geopolitical experts warn that water scarcity poses not just a public health risk, but a threat to global security. Currently, some 1.1 billion people, one-sixth of the world population, lack safe drinking water. Global water consumption is growing at unsustainable rates, doubling every 20 years, according to a March 2008 report by Goldman Sachs. A study by International Alert, a London-based conflict-resolution group, listed 46 countries with a combined population of 2.7 billion that have a "high risk" for violent conflict over water in the next two decades.

Maude Barlow, a Canadian water activist who has opposed privatization for more than 20 years, was recently appointed as the United Nation's first senior adviser on water issues. Her position, which is unpaid, was created by the Rev. Miguel d'Escoto Brockmann, president of the United Nations General Assembly. Here are highlights from her conversation with the Wall Street Journal.

WSJ: You've been an outspoken critic of the U.N.'s and the World Bank's water policies, saying that both have aided the "corporate takeover of the world's water." Were you surprised to be offered an advisory role at the U.N.?

Maude Barlow: I don't think I would have been offered a role there by anyone but someone like Father Miguel. He cares deeply about the poor. He's a liberation theology priest from Nicaragua.

I've been critical and will continue to be critical of the overly close relationship of the U.N. to big water corporations. At a time when the need was growing so much, they said, 'Well, the private companies will pay for it,' and they didn't. No one has the right to appropriate water for profit while other people are dying.

What will you try to change about the U.N.'s water policies?

I would like to see it shift from reliance on water companies and privatization, what I call the hard path, to the soft path -- watershed protection, rain harvesting and watershed restoration. You can't have the human right to water if there's no water. Studies show that as we remove water from aquifers, we dry up the land. The rain won't come if there's no vegetation.

Some economists argue that privatization will reduce water consumption and waste, the way oil prices have spurred efforts toward more efficient energy use. Wouldn't putting a price on water actually help to reduce waste?

To me, the issue isn't whether you price or not, it's the conditions. There are three important conditions to putting a price on water. The first is that no one should be denied access because they can't pay. The second is that water is maintained by the public sector, so it's like a tax, not a fee. The third is, you're paying for the service, you don't own the water. It's very important that we say water is not a commodity.

Do you see any role for the private sector?

In the building of infrastructure and pipes. There's an important place for the private sector in water cleanup technology. There's no place for the private sector in water delivery. It should be delivered by the public sector on a not-for-profit basis.

The U.N.'s Millennium Development Goals to reduce global poverty include the objective of cutting the number of people without access to clean water in half by 2015. You have said that at the rate they're going, it will take much longer. What steps will you recommend to speed things up?

The twin pillars of a water secure future for the world are on the one hand, conservation and protection, and on the other hand, the human right to water.

One of my criticisms of the U.N. Millennium Development Goals about water has been the disconnect between those who are working on the environmental side and those who are working on the human-rights side. I don't think there's been nearly enough attention paid to protecting source water. Seventy-five to 80% of surface water in India, China or Russia is too polluted to bathe in, drink or fish in.

The U.N. bought into the World Bank's solution, which is, bring in water companies and let them provide these huge projects, and if you're wealthy you can pay for water. They don't see it as their responsibility to provide water for the poor. I've been in communities with prepaid water meters. There's water, but they can't afford to turn the tap on, so they go to the river, where there are cholera warning signs.

In your latest book, "Blue Covenant," you write about virtual water -- the water that is used to produce commodities like cars and computer chips -- as a big source of water consumption.

I think we're going to hear a lot more about that in the next few years. The U.S. is exporting a third of its water in the form of virtual water exports through commodities. Britain and Japan import most of their virtual water.

Europe grows its roses in Africa around Lake Naivasha in Kenya. The lake is so damaged now that these companies are looking for new lakes in Uganda. It's not just looking at our water footprint in our own country and community and household. It's where your water footprint is coming from.

Has the financial crisis slowed the pace of global investments in water indexes?


What worries me is the opposite. It's the one area where people are still going to invest. It's not going to fluctuate the way other commodities do, because we're a species running out of clean water.

The other thing I'm worried about from the credit crisis is that cash-strapped municipalities and states may sell off water treatment plants to the private sector.

You've criticized the Bush administration for "gutting the Clean Water Act." and have noted that funding for water research in the U.S. has been stagnant for 30 years. Do you expect to see changes under an Obama administration?

I'm sure hoping. I think this is a much more environmentally conscious president coming in, as the issues around food, water and energy are becoming more prominent. I do think that we may have an opportunity with a more open administration and a more aware public to really start to move these issues forward. But if it doesn't happen, the U.S. is going to be one big Atlanta .

Which countries would you hold up as models in terms of sustainable water management?

None. Europe is way ahead in terms of how it cares for its water. However, Europe imports the bulk of its water footprint, so the way it protects its own water is to use and abuse other countries' water.


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Tuesday, September 23, 2008

Bernie Sanders: Bailout Transfers Wealth - Upward

by John Nichols, posted on CommonDreams.org, September 21, 2008

Democratic presidential candidate Barack Obama, like rival John McCain, has yet to take a stand one way of the other on the proposal to have U.S. taxpayers bail out the worst players in the U.S. financial system with a scheme to buy up $700 billion worth of bad loans.

Obama calls McCain "the great deregulator" and warned that the Republican would do to the health care system what had been done to the banking.

McCain's campaign called Obama a "directionless driver" on the economy.

Obama was for helping Wall Street and Main Street, which was better than just helping Wall Street... but not much, when you consider that Main Street rarely wins these wrestling matches. McCain was for keeping "people in their homes and (safeguarding) the life savings of all Americans by protecting our financial system and capital markets," which is this week's variation on the "sound economy" in "crisis" dichotomy of last week.

But neither candidate took a clear stand on the proposal that's being placed on the table.

So what should the contenders -- especially Obama -- be saying?

How about borrowing a page from Vermont Senator Bernie Sanders, who served as a member of the House banking committee before his election to the Senate, where he is now a member of the budget committee.
Sanders actually understands how the current crisis got started.

And the independent senator understands that what is being proposed by the Washington and Wall Street mandarins who got us into this mess as a fix is actually bad policy on steroids.

Here's what Sanders says -- and what Obama and the Democrats should be saying:
For years, as a member of the House Banking Committee and now as a member of the Senate Budget Committee, I have heard the Bush Administration tell us how "robust" our economy was and how strong the "fundamentals" were. That was until a few days ago. Now, we are being told that if Congress does not act immediately and approve the $700 billion Wall Street bailout proposal these "free marketers" have just written up, there will be an unprecedented economic meltdown in the United States and an unraveling of the global economy.

This proposal as presented is an unacceptable attempt to force middle income families (and our children) to pick up the cost of fixing the horrendous economic mess that is the product of the Bush Administration's deregulatory fever and Wall Street's insatiable greed. If the potential danger to our economy was not so dire, this blatant effort to essentially transfer $700 billion up the income ladder to those at the top would be laughable.

Let us be clear. If the economy is on the edge of collapse we need to act. But rescuing the economy does not mean we have to just give away $700 billion of taxpayer money to the banks. (In truth, it could be much more than $700 billion. The bill only says the government is limited to having $700 billion outstanding at any time. By selling the mortgage backed assets it acquires -- even at staggering losses -- the government will be able to buy even more resulting is a virtually limitless financial exposure on the part of taxpayers.) Any proposal must protect middle income and working families from bearing the burden of this bailout.

I have proposed a three part plan to accomplish that goal which includes a five-year, 10% surtax on the income of individuals above $500,000 a year, and $1 million a year for couples; a requirement that the price the government pays for any mortgage assets are discounted appropriately so that government can recover the amount it paid for them; and, finally, the government should receive equity in the companies it bails out so that when the stock of these companies rises after the bailout, taxpayers also have the opportunity to share in the resulting windfall. Taken together, these measures would provide the best guarantee that at the end of five years, the government will have gotten back the money it put out.

Second, in addition to protecting the average American from being saddled with the cost, any serious proposal has to include reforms so that we end the type of behavior that led to this crisis in the first place. Much of this activity can be traced to specific legislation that broke down regulatory safety walls in the financial sector and allowed banks and others to engage in new types of risky transactions that are at the heart of this crisis. That deregulation needs to be repealed. Wall Street has shown it cannot be trusted to police itself. We need to reinstate a strong regulatory system that protects our economy.

Third, we need to address the needs of working families in this country who are today facing very difficult times. If we can bail out Wall Street, we need to respond with equal vigor to their plight. That means, for example, creating millions of jobs through major investments in rebuilding our crumbling infrastructure and creating a new renewable energy system. We must also make certain that the most vulnerable Americans don't freeze in the winter or die because they lack access to primary health care.

Finally, we need to protect ourselves from being at the mercy of giant companies that are "too big to fail," that is, companies who are so large that their failure would cause systemic harm to the economy. We need to assess which companies fall into this category and insist they are broken up. Otherwise, the American taxpayer will continue to be on the financial hook for the risky behavior, the mismanagement, and even the illegal conduct of these companies' executives.

These are the last days of the Bush Administration, the most dishonest and incompetent in modern American history. It is imperative that, at this important moment, Congress stand up for the middle class and for fiscal integrity. The future of our country is at stake.
Read the original posting here.


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Monday, August 11, 2008

Ecuadorian Assembly approves constitutional rights for nature

Published on July 10 at climateandcapitalism.com

On July 7, the 130-member Ecuador Constitutional Assembly, elected countrywide to rewrite the country’s Constitution, voted to approve articles that recognize rights for nature and ecosystems.

“If adopted in the final constitution by the people, Ecuador would become the first country in the world to codify a new system of environmental protection based on rights,” says Thomas Linzey, Executive Director of the Community Environmental Legal Defense Fund.

The following clauses will be included in the constitution that will be submitted to a countrywide vote, to be held 45 days after Assembly finishes its work later this month.

Chapter: Rights for Nature

Art. 1. Nature or Pachamama, where life is reproduced and exists, has the right to exist, persist, maintain and regenerate its vital cycles, structure, functions and its processes in evolution.

Every person, people, community or nationality, will be able to demand the recognitions of rights for nature before the public organisms. The application and interpretation of these rights will follow the related principles established in the Constitution.

Art. 2. Nature has the right to an integral restoration. This integral restoration is independent of the obligation on natural and juridical persons or the State to indemnify the people and the collectives that depend on the natural systems.

In the cases of severe or permanent environmental impact, including the ones caused by the exploitation on non renewable natural resources, the State will establish the most efficient mechanisms for the restoration, and will adopt the adequate measures to eliminate or mitigate the harmful environmental consequences.

Art. 3. The State will motivate natural and juridical persons as well as collectives to protect nature; it will promote respect towards all the elements that form an ecosystem.

Art. 4. The State will apply precaution and restriction measures in all the activities that can lead to the extinction of species, the destruction of the ecosystems or the permanent alteration of the natural cycles.

The introduction of organisms and organic and inorganic material that can alter in a definitive way the national genetic patrimony is prohibited.

Art. 5. The persons, people, communities and nationalities will have the right to benefit from the environment and form natural wealth that will allow wellbeing.

The environmental services are cannot be appropriated; its production, provision, use and exploitation, will be regulated by the State.

“Public organisms” in Article 1 means the courts and government agencies, i.e., the people of Ecuador would be able to take action to enforce nature rights if the government did not do so.


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Wednesday, August 6, 2008

Thomas Frank: Why Misgovernment Was No Accident in George W. Bush’s Washington

Published on Tuesday, August 5, 2008 by TomDispatch.com

Washington is the city where the scandals happen. Every American knows this, but we also believe, if only vaguely, that the really monumental scandals are a thing of the past, that the golden age of misgovernment-for-profit ended with the cavalry charge and the robber barons, at about the same time presidents stopped wearing beards.

I moved to Washington in 2003, just in time for the comeback, for the hundred-year flood. At first it was only a trickle in the basement, a little stream released accidentally by the president’s friends at Enron. Before long, though, the levees were failing all over town, and the city was inundated with a muddy torrent of graft.

How are we to dissect a deluge like this one? We might begin by categorizing the earmarks handed out by Congress, sorting the foolish earmarks from the costly earmarks from the earmarks made strictly on a cash basis. We could try a similar approach to government contracting: the no-bid contracts, the no-oversight contracts, the no-experience contracts, the contracts handed out to friends of the vice president. We might consider the shoplifting career of one of the president’s former domestic policy advisers or the habitual plagiarism of the president’s liaison to the Christian right. And we would certainly have to find some way to parse the extraordinary incompetence of the executive branch, incompetence so fulsome and steady and reliable that at some point Americans stopped being surprised and began simply to count on it, to think of incompetence as the way government works.
But the onrushing flow swamps all taxonomies. Mass firing of federal prosecutors; bribing of newspaper columnists; pallets of shrink-wrapped cash “misplaced” in Iraq; inexperienced kids running the Baghdad stock exchange; the discovery that many of Alaska’s leading politicians are apparently on the take — our heads swim. We climb to the rooftop, but we cannot find the heights of irony from which we might laugh off the blend of thug and Pharisee that was Tom DeLay — or dispel the nauseating suspicion, quickly becoming a certainty, that the government of our nation deliberately fibbed us into a pointless, catastrophic war.

Bad Apples All Around
So let us begin on the solid ground of these simple facts: this spectacular episode of misrule has coincided with both the political triumph of conservatism and with the rise of the Washington area to the richest rank of American metropolises. In the period I am describing, gentlemen of the right rolled through the capital like lords of creation. Every spigot was open, and every indulgence slopped out for their gleeful wallowing. All the clichés roared at full, unembarrassed volume: the wines gurgled, the T-bones roasted, the golf courses beckoned, the Learjets zoomed, the contractors’ glass buildings sprouted from the earth, and the lobbyists’ mansions grew like brick-colonial mushrooms on the hills of northern Virginia.

Democrats, for their part, have tried to explain the flood of misgovernment as part of a “culture of corruption,” a phrase at once obviously true and yet so amorphous as to be quite worthless. Republicans have an even simpler answer: government failed, they tell us, because it is the nature of government enterprises to fail. As for the great corruption cases of recent years, they cluck, each is merely a one-of-a-kind moral lapse unconnected to any particular ideology — an individual bad apple with no effect on the larger barrel.

Which leaves us to marvel helplessly at what appears to be a spectacular run of lousy luck. My, what a lot of bad apples they are growing these days!

Corruption is uniquely reprehensible in a democracy because it violates the system’s first principle, which we all learned back in the sunshiny days of elementary school: that the government exists to serve the public, not particular companies or individuals or even elected officials. We Are the Government, insisted the title of a civics primer published in the earnest year of 1945. “The White House belongs to you,” its dust jacket told us. “So do all the other splendid buildings in Washington, D.C. For you are a citizen of the United States.” For you, young citizen, does the Post Office carry letters to every hamlet in the nation. For you does the Department of Agriculture research better plowing methods and the Bureau of Labor Statistics add up long columns of numbers.

The government and its vast workforce serve the people: The idea is so deep in the American grain that we can’t bring ourselves to question it, even in this disillusioned age. Republicans and Democrats may fight over how big government should be and exactly what it should do, but almost everyone shares those baseline good intentions, we believe, that devotion to the public interest.

We continue to believe this in even the most improbable circumstances. Take the worst apple of them all, lobbyist Jack Abramoff, whose astonishing career as a corruptionist has been unreeling in newspaper and congressional investigations since I came to Washington. Abramoff started out as a great political success story, a protégé and then a confidant of the leaders of the conservative faction of the Republican Party. But his career disintegrated on news of the inventive ways he ripped off his clients and the luxury meals and lavish trips with which he bribed legislators.

Journalistic coverage of the Abramoff affair has stuck closely to the “bad apple” thesis, always taking pains to separate the conservative movement from its onetime superstar. What Abramoff represented was “greed gone wild,” asserts the most authoritative account on the subject. He “went native,” say others. Above all, he was “sui generis,” a one-of-a-kind con man, “engaged in bizarre antics that your average Zegna-clad Washington lobbyist would never have dreamed of.”

In which case, we can all relax: Jack Abramoff’s in jail. The system worked; the bad apple has been plucked; the wild greed and the undreamed-of antics have ceased.

Misgovernment by Ideology
But the truth is almost exactly the opposite, whether we are discussing Abramoff or the wider tsunami of corruption. The truth is as obvious as a slab of sirloin and yet so obscured by decades of pettifoggery that we find it almost impossible to apprehend clearly. The truth slaps your face in every hotel lobby in town, but we still don’t get the message.

It is just this: Fantastic misgovernment of the kind we have seen is not an accident, nor is it the work of a few bad individuals. It is the consequence of triumph by a particular philosophy of government, by a movement that understands the liberal state as a perversion and considers the market the ideal nexus of human society. This movement is friendly to industry not just by force of campaign contributions but by conviction; it believes in entrepreneurship not merely in commerce but in politics; and the inevitable results of its ascendance are, first, the capture of the state by business and, second, all that follows: incompetence, graft, and all the other wretched flotsam that we’ve come to expect from Washington.

The correct diagnosis is the “bad apple” thesis turned upside down. There are plenty of good conservative individuals, honorable folks who would never participate in the sort of corruption we have watched unfold over the last few years. Hang around with grassroots conservative voters in Kansas, and in the main you will find them to be honest, hardworking people. Even our story’s worst villains can be personally virtuous. Jack Abramoff, for example, is known to his friends as a pious, polite, and generous fellow.

But put conservatism in charge of the state, and it behaves very differently. Now the “values” that rightist politicians eulogize on the stump disappear, and in their place we can discern an entirely different set of priorities — priorities that reveal more about the unchanging historical essence of American conservatism than do its fleeting campaigns against gay marriage or secular humanism. The conservatism that speaks to us through its actions in Washington is institutionally opposed to those baseline good intentions we learned about in elementary school.

Its leaders laugh off the idea of the public interest as airy-fairy nonsense; they caution against bringing top-notch talent into government service; they declare war on public workers. They have made a cult of outsourcing and privatizing, they have wrecked established federal operations because they disagree with them, and they have deliberately piled up an Everest of debt in order to force the government into crisis. The ruination they have wrought has been thorough; it has been a professional job. Repairing it will require years of political action.

Conservatism-in-power is a very different beast from the conservatism we meet on the streets of Wichita or the conservatism we overhear talking to itself on the pages of Free Republic. For one thing, what conservatism has done in its decades at the seat of power is fundamentally unpopular, and a large percentage of its leaders have been men of eccentric ideas. While they believe things that would get them laughed out of the American Sociological Association, that only makes them more typical of the movement. And for all their peculiarity, these people — Grover Norquist, Tom DeLay, Jack Abramoff, Newt Gingrich, and the whole troupe of activists, lobbyists, and corpora-trons who got their start back in the Reagan years — have for the last three decades been among the most powerful individuals in America. This wave of misgovernment has been brought to you by ideology, not incompetence.

Yes, today’s conservatives have disgraced themselves, but they have not strayed from the teaching of their forefathers or the great ideas of their movement. When conservatives appoint the opponents of government agencies to head those government agencies; when they auction their official services to the purveyor of the most lavish “golf weekend”; when they mulct millions from groups with business before Congress; when they dynamite the Treasury and sabotage the regulatory process and force government shutdowns — in short, when they treat government with contempt — they are running true to form. They have not done these awful things because they are bad conservatives; they have done them because they are good conservatives, because these unsavory deeds follow naturally from the core doctrines of the conservative tradition.

And, yes, there has been greed involved in the effort — a great deal of greed. Every tax cut, every cleverly engineered regulatory snafu saves industry millions and perhaps even billions of dollars, and so naturally securing those tax cuts and engineering those snafus has become a booming business here in Washington. Conservative rule has made the capital region rich, a showplace of the new plutocratic order. But this greed cannot be dismissed as some personal failing of lobbyist or congressman, some badness-of-apple that can be easily contained. Conservatism, as we know it, is a movement that is about greed, about the “virtue of selfishness” when it acts in the marketplace. In rightwing Washington, you can be a man of principle and a boodler at the same time.

The Wrecking Crew in Full Swing
One of the instructive stories We Are the Government brought before generations of schoolkids was the tale of a smiling dime whose wanderings were meant to introduce us to the government and all that it does for us: the miner who digs the ore for the dime has his “health and safety” supervised by one branch of the government; the bank in which the dime is stored enjoys the protection of a different branch, which “sees that [banks] are safe places for people to keep their money”; the dime gets paid in tax on a gasoline sale; it then lands in the pocket of a Coast Guard lieutenant, who takes it overseas and spends it on a parrot, which is “quarantined for ninety days” when the lieutenant brings it home. All of which is related with the blithest innocence, as though taxes on gasoline and quarantines on parrots were so obviously beneficial that they required little further explanation.

Clearly, a more up-to-date version is required. So let us follow the dime as it wends its way through our present-day capital. Its story, we will find, is the reverse of what it was in 1945. That old dime was all about service, about the things government could do for us. But the new dime is about profit — about the superiority of private enterprise, about the huge sums that can be squeezed out of federal operations. Instead of symbolizing good government, the dime now shows us the wrecking crew in full swing.

Our modern dime first comes to Washington as part of some good citizen’s taxes, and it leaves the U.S. Treasury in a payment to a company that has been hired to do work on the nation’s ports. Back in 1945, the government would have done the work itself, but now it uses contractors for such things. This particular contractor knows how to win a bid, but it doesn’t know how to do the work, so it subcontracts the job to another outfit. The dime follows, and it eventually makes up a worker’s salary, who incorporates it into his monthly car payment. From there it travels into the coffers of an auto industry trade association, which happens to be very upset about a rule proposed by a federal agency that would require cars to notify drivers when their tire pressure is low.

So the trade association gives the dime to a Washington consultant who specializes in fighting federal agencies, and this man launches challenge after challenge to the studies that the agency is using in the tire-pressure matter. It takes many years for the agency to make its way through the flak thrown up by this clever fellow. Meanwhile, with his well-earned dime, he buys himself a big house with nice white columns in front.

But this is only the beginning of the story. As we make our rounds of conservative Washington, we glimpse something much greater than single acts of incompetence or obstruction. We see a vast machinery built for our protection reengineered into a device for our exploitation. We behold the majestic workings of the free market itself, boring ever deeper into the tissues of the state. Ultimately, we gaze upon one of the true marvels of history: democracy buried beneath an avalanche of money.

Thomas Frank, the author of What’s the Matter with Kansas?, is the founding editor of The Baffler, a contributing editor at Harper’s, and, most recently, a columnist for the Wall Street Journal. His WSJ columns can be read at his website. He lives, of course, in Washington D.C. and this essay has been adapted from his new book, The Wrecking Crew: How Conservatives Rule (Metropolitan Books, 2008).


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Friday, July 25, 2008

US Senators question USTR's capacity to conclude a WTO deal

Published by South-North Development Monitor, July 25, 2008
Geneva, 24 July (Kanaga Raja) -- Two top leaders of the United States Senate have cast further doubts over efforts at the WTO to conclude the Doha trade talks at the current mini-Ministerial, and in effect have challenged the capacity of US Trade Representative Susan Schwab to make any binding commitments on behalf of the United States Congress.

In a letter to US President George W Bush, the two top leaders of the US Senate, Democratic Senators Russell D. Feingold and Robert C. Byrd, have asked what US Trade Representative Susan Schwab and other US trade officials, in the absence of Congressional Fast Track Authority, are telling other countries at the WTO mini-ministerial about their ability to make binding commitments, and obtaining Congressional approval for them.
In the letter dated 23 July 2008, Feingold and Byrd have referred to the United States participating in a Ministerial meeting of the WTO this week in Geneva, whose purpose is to finalize an agreement on certain outstanding issues related to the WTO Doha Round.

"The announcement of this WTO Ministerial was surprising to us," said the two senators.

Typically, they said, high-level negotiations only occur when all parties have authority to make a deal. Yet, the US Constitution grants Congress exclusive authority "to regulate commerce with foreign Nations" and to "lay and collect Taxes [and] Duties."

"As you know, for decades, US presidents have obtained delegations of this congressional trade authority under what is commonly known as Fast Track. However, your delegation of Fast Track Trade Promotion Authority terminated on June 30, 2007.

"Congress has refused to provide you with further authority - either more Fast Track or any other form of trade authority - nor is there any prospect of that occurring before the end of your term.

"Indeed, it is likely that in the future, the Fast Track process will be replaced altogether with a trade negotiation and approval mechanism that better reflects Congress's constitutional role regarding trade policy," said the letter to President Bush.

Therefore, said the two Senators, "we are interested in understanding what USTR Schwab or other US trade officials are representing to other countries' officials regarding their capacity to make binding commitments at this Ministerial on behalf of the US Congress."

"We are eager to ensure that if US trade negotiators participate in the current WTO ministerial, they represent US positions that comport with the sort of WTO agreement that could obtain support in the US Congress."


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Wednesday, July 16, 2008

Naomi Klein on the Shock Doctrine

Naomi Klein's The Shock Doctrine: The Rise of Disaster Capitalism is out in paperback this month. She spoke with Amy Goodman about our current economic "perfect storm" and the potential for pro-multinational economic restructuring on Democracy Now! yesterday. Here's a very brief excerpt from a discussion of how corporate-controlled policymaking is failing people and the planet on every front.

There really is a kind of a tsunami of shocks facing not just the economy but people's lives, people's real lives. They're all intersecting. They're making each other worse. And ...this is what I mean by "the shock doctrine." There is a clear political strategy, and has been for several decades, to exploit these moments when people are desperate for quick-fix solutions and more inclined to believe in a kind of a magical cure, to push through very, very unpopular policies that don't actually solve the crisis at hand, that don't actually help people, but are incredibly profitable for multinational corporations.
You can also read a transcript at Alternet, here.


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Tuesday, July 15, 2008

Walden Bello: Doha deal on services poses real perils

From the Bangkok Post

Desperate to clinch a new global trade deal, World Trade Organisation chief Pascal Lamy is planning to convene a "mini-ministerial" meeting in the third week of July.

The aim of the meeting is to come up with agreements to liberalise trade in agriculture, industry, and services which have been the focus of the so-called Doha Round of WTO negotiations that have dragged on since 2001.

Developing country governments have been rightly concerned about agreeing to texts which promise illusory reductions in agricultural subsidies in the European Union and United States and require them to cut their industrial tariffs proportionally more than the developed countries. They should also not allow themselves to be snookered into a bad agreement on services, which include such vital activities as the provision of water, energy, and financial intermediation.

While global attention has focused on the talks on agricultural subsidies and industrial tariffs, the US and EU have made it clear that they will not settle for a trade package that does not include services.

As US Trade Representative Susan Schwab bluntly stated in a recent opinion piece, Washington "will not support a Doha package unless it includes an ambitious outcome on services that delivers commercially meaningful results".

While Ms Schwab portrays the services talks as the poor cousin of the agriculture and industry negotiations, an equally possible outcome is a services agreement unaccompanied by deals in industrial tariffs and agriculture. With the North-South polarisation in agriculture and industry, salvaging Doha with a deal in services, which are said to account for 50-60% of economic activity in most developing countries, might be an attractive option to the EU and US.

The General Agreement on Trade in Services (Gats) requires countries to grant foreign service providers the same treatment as local firms. Developing countries are reluctant to do this, however, because of their current lack of capacity to regulate transnational businesses. Their fears have been fanned by troubles now in the global financial system, which are traceable to the absence of global regulation of developed country financial operators.

While financial services are just one of many services covered by Gats, the US and EU have made a liberalised financial sector their main demand on developing countries. It has been revealed, for instance, that the EU has demanded that some developing countries eliminate regulations that cover the activities of hedge funds, the financial groupings that are said to have triggered the collapse of the baht in 1997.

The EU has also demanded that Mexico open up its market to trade in derivatives, the slippery financial instruments that have played such a key role in the current financial chaos.

Most developing countries welcome foreign capital, but they have learned the hard way that a strong foreign financial presence demands a strong regulatory regime tailored to a particular country's needs and capacities.

It was the indiscriminate elimination of capital controls across the region at the behest of the International Monetary Fund and the US Treasury Department that brought on the devastating Asian financial crisis. With practically all capital controls lifted and investment rules liberalised, some US$100 billion flowed into the key Asian economies between 1993 and 1997, with the money gravitating toward areas of high and quick return, like the stock market and real estate.

With few controls on where the funds went, over-investment soon swamped the stock and housing markets, causing prices to collapse and triggering follow-on dislocations in the exchange rate, the balance of payments, and the balance of trade. Gripped by panic, speculators scampered toward the exit. With both entry and exit rules liberalised, there was no way for governments - except for Malaysia, which defied the IMF and imposed capital controls - to stop the stampede, and the $100 billion that fled the region in a few short weeks in the summer of 1997 brought economic growth to a screeching halt from Korea all the way down to Indonesia.

After the Asian financial crisis, the Argentine financial collapse, and the dot.com crash of 2000-2002, all of which were caused by speculative bubbles that developed owing to lack of financial regulation, one would have thought that developed country authorities would put the emphasis on seriously regulating the activities of global financial actors.

Global finance, however, resisted any move toward effective regulation. While there were calls for controls on proliferating financial instruments such as derivatives, these got nowhere. Assessment and regulation of derivatives were to be left to market players who supposedly had access to sophisticated quantitative "risk assessment" models that were being developed.

Having been burned by the consequences of financial deregulation, many developing country governments were not surprised when "self-regulation" led to the massive housing bubble whose bursting has brought the global financial system to the edge of collapse.

One of the stock scenarios of the old western movies was that of a train picking up speed towards a collision with another train as the lifeless hand of the engineer, already shot dead by outlaws, remained pressed on the accelerator. Current developments in global finance are reminiscent of this scene.

A global consensus is forming around strongly re-regulating the financial sector. But in disregard of this emerging consensus and the financial chaos around them, developed country negotiators at the WTO, much like the dead hand of the engineer, continue to press developing countries for a services agreement that would drastically liberalise their financial sectors!

The developing countries should steer clear of the train wreck that will certainly ensue from the US and EU's determination to pursue global financial liberalisation at any cost. They must not agree to a services deal that would compromise their ability to effectively regulate financial and other services.

Just as they must say no to agricultural and industrial tariff agreements loaded down with inequitable conditions, they must also not be party to a services agreement that would have no other effect but to continually drag them into the terrifying maelstroms of unregulated global finance.

Walden Bello is a professor of sociology at the University of the Philippines, and senior analyst at Focus on the Global South, a research institute at Chulalongkorn University in Bangkok.


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Friday, July 11, 2008

McCain Pledges Allegiance to NAFTA

By Robert Borosage

Arizona Sen. John McCain continues his rousing campaign tour of the swing states of NAFTA this week. He will celebrate July 3 in Mexico City after a jaunt through Colombia to pledge support for the pending free trade accord with that center of cocaine trade. He surely will increase his margin over Illinois Sen. Barack Obama among business elites in Mexico and Canada. Obama will travel to Zanesville, Ohio, once more exposing himself to McCain's jibes about embracing "protectionist" policies.

No, this isn't a joke. McCain is stumping Colombia and Mexico, a week after his visit to Ottawa, championing the North American Free Trade Agreement to business elites in those countries.

McCain's has a pat routine for these junkets. He piously intones homilies on the benefits of free trade: "We need stand up for free trade with no ifs, ands or buts about it. We let trade and globalization be politicized at our own peril." He repeats a sanctimonious pledge never to "dishonor" America by even contemplating any deviation from the "sacred" NAFTA treaty. He issues stern condemnations of the dangers of "mindless protectionism." And expresses his fervent faith in the ability of American workers to compete with anyone anywhere.

You can't teach an old dog new tricks, goes the old saw. And with McCain, it seems ever more obvious that you can't trust an old salt on a new ocean. He simply doesn't get it. For years, the trade debate featured the above mantra he repeats. Trade, by definition, benefited America. Sure, a few privileged union workers might lose their cushy jobs and padded salaries, but they would find new jobs in the expanding global economy. Americans would prosper from investments abroad, our financial services industry would capture the high end of the expanded world economy, we'd sustain our manufacturing edge by becoming more productive and we'd benefit from lower priced goods imported from abroad. The earth was flat, Tom Friedman taught us, and we're all the better for it.

Except it hasn't quite worked out like that. Productivity went up, but wages stagnated at best and insecurity increased. Corporations clubbed workers with the threat of moving abroad, and cut back on salaries, job security, and benefits like health care and pensions. Families went ever deeper into debt as the cost of basics—education, health care, retirement security, and now food and gas—soared. More and more workers lost good jobs, only to be forced into those that paid less with fewer benefits. And now with the global workforce effectively doubled as China and India and the former Soviet Union joined the global maw, it isn't just industrial workers at risk, but some 30 million jobs that could face offshoring, according to such sober free trade advocates as Alan Blinder. Financial services did prosper, until their greed and gambling blew up in the housing bubble.

The U.S. went further and further into global debt, running up trade deficits that are still $2 billion a day despite the decline in the dollar. Last month, the Chinese announced they were netting $2.5 billion a month—$100 million an hour—in foreign exchange. Their sovereign investment funds are now hunting for good deals across the world.

NAFTA, sold as a source of jobs for the U.S. and a solution to the immigration flows from Mexico, hasn't worked that way either. Our trade deficit with Mexico has soared from a basic balance before NAFTA to an all-time high of $74.3 billion last year. Mexico now exports more cars to the United States than the U.S. exports to the world. Immigration tensions grew as small farmers got displaced in Mexico by subsidized U.S. food exports, and started coming north in large numbers.

Elites found ways to protect themselves. Lawyers, doctors, prescription drug companies use licensing and patent laws to protect their wages and profits, but most Americans worry about how their kids were going to sustain a middle-class life style. Globalization isn't the only reason the middle class is declining—the war on labor, the worship of the CEO and other factors contribute—but it certainly is a significant reason.

And across the world, developing countries discovered the NAFTA model didn't work for them either. The countries that have enjoyed success—the Asian tigers, China—play by a very different set of rules. They target industries, and pursue aggressive mercantilist policies to capture export markets. They run up large foreign reserves to be able to protect their currencies from global speculators. China's bosses have been happy to lend us the money to keep buying the goods our companies were making over there—and will manipulate the value of their currency until they capture the markets they are seeking. But it is hard to argue, as McCain does, that free trade is spreading democracy across the world when the most successful economy is a communist dictatorship.

Now even champions of free trade, like former Treasury Secretaries Robert Rubin and Larry Summers admit this hasn't quite worked out as they hoped. Across the world, the revolt against the corporate trade model is growing. In the U.S., a majority —58 percent—of those polled in a January 2008 Wall Street Journal/NBC survey agreed that "globalization has been bad... because it has subjected U.S. companies and employees to unfair competition and cheap labor."

We face not a choice between "free trade" and "isolationism," as McCain claims, but the challenge of developing a serious strategy for sustaining a robust middle class in a global economy. It isn't a choice between keeping our word and "dishonoring" our commitments, but making a clear reassessment of how we get out of the hole we are in.

Sherrod Brown was elected to the Senate in 2006 through a campaign in Ohio focused on opposition to the trade treaties that have devastated manufacturing jobs in that state. He now has joined with other senators, unions, family farm groups, religious and public interest groups to put forth the TRADE Act. The bill calls for a halt on all new trade accords until the U.S. Comptroller General undertakes a comprehensive assessment of the benefits and the costs of our current agreements, looking at who has benefited—here and abroad—and who has suffered. The legislation then calls for developing a strategy that insures that the benefits of trade are widely shared, that we pursue a policy designed to benefit working people and Main Street, and not simply Wall Street. Obama has laid out elements of an alternative strategy that may form the basis of a new course.

McCain's response to this is like an Inquisition priest discovering free thinking in the pews. Doctrine is sacrosanct. Questioning it is dishonorable. He calls upon Americans to sustain the course we have been on, like lemmings marching stolidly to the sea.

He pretends this is an American tradition, claiming that "every time the United States has become protectionist... we've paid a very heavy price." But this ignores the entire history of this country's rise—with sharp eyed mercantilist trade policies behind tariff walls—to a world economic power with a broad middle class. "Yankee traders" were famed for cutting a tough, practical deal, not for sacrificing their interests for ideological principles.

Nor is McCain such an innocent. He says we mustn't "politicize" trade accords, but trade accords are already heavily politicized. Every trade agreement—particularly NAFTA—features fierce lobbying over every clause. McCain knows this because his entire campaign is staffed from top to bottom by corporate lobbyists, many of whom have earned a hefty buck lobbying to influence and pass trade accords. If McCain is elected, their clients know that they are in line to be first to the trough.

Saint John doesn't sully his rhetoric with these unseemly realities. He seems to want to make trade policy a centerpiece of his election campaign, and doing so will surely help him raise some dough. Obama should take him up on it. Let McCain stump the business elites of Mexico City, Bogota and Ottawa. Obama can join Sherrod Brown championing the concerns of working people in Zanesville and Flint and Pittsburgh. Let voters decide which candidate has his priorities right.


This post originally appeared on HuffingtonPost.com.


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