Why the free market fundamentalists think 2013 will be the best year ever

As communists once did, today's capitalists blame any failures on their system being 'impurely' applied

Slavoj Žižek

http://www.guardian.co.uk/commentisfree/2013/feb/17/free-market-fundamentalists-think-2013-best

[…]

That's the problem with development and progress: they are always uneven, they give birth to new instabilities and antagonisms, they generate new expectations that cannot be met. In Egypt just prior to the Arab spring, the majority lived a little better than before, but the standards by which they measured their (dis)satisfaction were much higher.

In order not to miss this link between progress and instability, one should always focus on how what first appears as an incomplete realisation of a social project signals its immanent limitation. There is a story (apocryphal, maybe) about the left-Keynesian economist John Galbraith: before a trip to the USSR in the late 1950s, he wrote to his anti-communist friend Sidney Hook: "Don't worry, I will not be seduced by the Soviets and return home claiming they have socialism!" Hook answered him promptly: "But that's what worries me – that you will return claiming USSR is not socialist!" What Hook feared was the naive defence of the purity of the concept: if things go wrong with building a socialist society, this does not invalidate the idea itself, it simply means we didn't implement it properly. Do we not detect the same naivety in today's market fundamentalists?

When, during a recent TV debate in France, the French philosopher and economist Guy Sorman claimed democracy and capitalism necessarily go together, I couldn't resist asking him the obvious question: "But what about China?" He snapped back: "In China there is no capitalism!" For the fanatically pro-capitalist Sorman, if a country is non-democratic, it is not truly capitalist, in exactly the same way that for a democratic communist, Stalinism was simply not an authentic form of communism.

This is how today's apologists for the market, in an unheard-of ideological kidnapping, explain the crisis of 2008: it was not the failure of the free market that caused it, but the excessive state regulation; the fact that our market economy was not a true one, but was instead in the clutches of the welfare state. When we dismiss the failures of market capitalism as accidental mishaps, we end up in a naive "progress-ism" that sees the solution as a more "authentic" and pure application of a notion, and thus tries to put out the fire by pouring oil on it.

Why Latin America Didn't Join Washington's Counterterrorism Posse

Posted by Greg Grandin

http://www.tomdispatch.com

[…]

the Open Society Institute published the most comprehensive investigation yet of the offshore system of injustice that George W. Bush and his top officials set up to kidnap “terror suspects,” imprison them without charges or end, and torture and abuse them, or “render” them to other countries willing to do the same. It turns out that 54 nations (other than the U.S.) took part in setting up, aiding, and maintaining this American global gulag. It’s a roster of dishonor worth noting: Afghanistan, Albania, Algeria, Australia, Austria, Azerbaijan, Belgium, Bosnia-Herzegovina, Canada, Croatia, Cyprus, the Czech Republic, Denmark, Djibouti, Egypt, Ethiopia, Finland, Gambia, Georgia, Germany, Greece, Hong Kong, Iceland, Indonesia, Iran, Ireland, Italy, Jordan, Kenya, Libya, Lithuania, Macedonia, Malawi, Malaysia, Mauritania, Morocco, Pakistan, Poland, Portugal, Romania, Saudi Arabia, Somalia, South Africa, Spain, Sri Lanka, Sweden, Syria, Thailand, Turkey, the United Arab Emirates, the United Kingdom, Uzbekistan, Yemen, and Zimbabwe.

Remarkably, according to the Open Society report, just one of those states evidently had a lawyer on hand who could actually recognize torture, even if well after the fact.  “Canada,” its authors write, “is the only country to issue an apology to an extraordinary rendition victim, Maher Arar, who was extraordinarily rendered to, and tortured in, Syria.” 

[…]

Profiting From Human Misery

http://www.truthdig.com/report/item/profiting_from_human_misery_20130217/

By Chris Hedges

Marela, an undocumented immigrant in her 40s, stood outside the Elizabeth Detention Center in Elizabeth, N.J., on a chilly afternoon last week. She was there with a group of protesters who appear at the facility’s gates every year on Ash Wednesday to decry the nation’s immigration policy and conditions inside the center. She was there, she said, because of her friend Evelyn Obey.

Obey, 40, a Guatemalan and the single mother of a 12-year-old and a 6-year-old, was picked up in an immigration raid as she and nine other undocumented workers walked out of an office building they cleaned in Newark, N.J. Her two children instantly lost their only parent. She languished in detention. Another family took in the children, who never saw their mother again. Obey died in jail in 2010 from, according to the sign Villar had hung on her neck, “pulmonary thromboembolism, chronic bronchiolitis and emphysema and remote cardiac Ischemic Damage.’ ”

“She called me two days after she was seized,” Marela told me in Spanish. “She was hysterical. She was crying. She was worried about her children. We could not visit her because we do not have legal documents. We helped her get a lawyer. Then we heard she was sick. Then we heard she died. She was buried in an unmarked grave. We did not go to her burial. We were too scared of being seized and detained.”

The rally—about four dozen people, most from immigrant rights groups and local churches—was a flicker of consciousness in a nation that has yet to fully confront the totalitarian corporate forces arrayed against it. Several protesters in orange jumpsuits like those worn by inmates held signs reading: “I Want My Family Together,” “No Human Being is Illegal,” and “Education not Deportation.” 

“The people who run that prison make money off of human misery,” said Diana Mejia, 47, an immigrant from Colombia who now has legal status, gesturing toward the old warehouse that now serves as the detention facility. As she spoke, a Catholic Worker band called the Filthy Rotten System belted out a protest song. A low-flying passenger jet, its red, green and white underbelly lights blinking in the night sky, rumbled overhead. Clergy walking amid the crowd marked the foreheads of participants with ashes to commemorate Ash Wednesday.

“Repentance is more than merely being sorry,” the Rev. Joyce Antila Phipps, the executive director of Casa de Esperanza, a community organization working with immigrants, told the gathering. “It is an act of turning around and then moving forward to make change.”

The majority of those we incarcerate in this country—and we incarcerate a quarter of the world’s prison population—have never committed a violent crime. Eleven million undocumented immigrants face the possibility of imprisonment and deportation. President Barack Obama, outpacing George W. Bush, has deported more than 400,000 people since he took office. Families, once someone is seized, detained and deported, are thrown into crisis. Children come home from school and find they have lost their mothers or fathers. The small incomes that once sustained them are snuffed out. Those who remain behind often become destitute.

But human beings matter little in the corporate state. We myopically serve the rapacious appetites of those dedicated to exploitation and maximizing profit. And our corporate masters view prisons—as they do education, health care and war—as a business. The 320-bed Elizabeth Detention Center, which houses only men, is run by one of the largest operators and owners of for-profit prisons in the country, Corrections Corporation of America. CCA, traded on the New York Stock Exchange, has annual revenues in excess of $1.7 billion. An average of 81,384 inmates are in its facilities on any one day. This is a greater number, the American Civil Liberties Union points out in a 2011 report, “Banking on Bondage: Private Prisons and Mass Incarceration,” than that held by the states of New York and New Jersey combined.

The for-profit prisons and their lobbyists in Washington and state capitals have successfully blocked immigration reform, have prevented a challenge to our draconian drug laws and are pushing through tougher detention policies. Locking up more and more human beings is the bedrock of the industry’s profits. These corporations are the engines behind the explosion of our prison system. They are the reason we have spent $300 billion on new prisons since 1980. They are also the reason serious reform is impossible.

The United States, from 1970 to 2005, increased its prison population by about 700 percent, according to statistics gathered by the ACLU. The federal Bureau of Justice Statistics, the ACLU report notes, says that for-profit companies presently control about 18 percent of federal prisoners and 6.7 percent of all state prisoners. Private prisons account for nearly all of the new prisons built between 2000 and 2005. And nearly half of all immigrants detained by the federal government are shipped to for-profit prisons, according to Detention Watch Network.

U.S. Immigration and Customs Enforcement (ICE), which imprisons about 400,000 undocumented people a year, has an annual budget of more than $5 billion. ICE is planning to expand its operations by establishing several mega-detention centers, most run by private corporations, in states such as New Jersey, Texas, Florida, California and Illinois. Many of these private contractors are, not surprisingly, large campaign donors to “law and order” politicians including New Jersey Gov. Chris Christie.

In CCA’s annual report to the Securities and Exchange Commission for 2011, cited by the ACLU, the prison company bluntly states its opposition to prison reform. “The demand for our facilities and services could be adversely affected by the relaxation of enforcement efforts, leniency in conviction or parole standards and sentencing practices or through the decriminalization of certain activities that are currently proscribed by criminal laws,” it declares. CCA goes on to warn that “any changes with respect to drugs and controlled substances or illegal immigration” could “potentially [reduce] demand for correctional facilities,” as would “mak[ing] more inmates eligible for early release based on good behavior,” the adoption of “sentencing alternatives [that] ... could put some offenders on probation” and “reductions in crime rates.”

CCA in 2011 gave $710,300 in political contributions to candidates for federal or state office, political parties and 527 groups (PACs and super PACs), the ACLU reported. The corporation also spent $1.07 million lobbying federal officials along with undisclosed funds to lobby state officials, according to the ACLU. 

CCA, through the American Legislative Exchange Council (ALEC), lobbies legislators to impose harsher detention laws at the state and federal levels. The ALEC helped draft Arizona’s draconian anti-immigrant law SB 1070.

A March 2012 CCA investor presentation prospectus, quoted by the ACLU, tells potential investors that incarceration “creates predictable revenue streams.” The document cites demographic trends that the company says will continue to expand profits. These positive investment trends include, the prospectus reads, “high recidivism”—“about 45 percent of individuals released from prison in 1999 and more than 43 percent released from prison in 2004 were returned to prison within three years.” The prospectus invites investments by noting that one in every 100 U.S. adults is currently in prison or jail. And because the U.S. population is projected to grow by approximately 18.6 million from 2012 to 2017, “prison populations would grow by about 80,400 between 2012 and 2017, or by more than 13,000 additional per year, on average,” the CCA document says.

The two largest private prison companies in 2010 received nearly $3 billion in revenue. The senior executives, according to the ACLU report, each received annual compensation packages worth well over $3 million. The for-profit prisons can charge the government up to $200 a day to house an inmate; they pay detention officers as little as $10 an hour.

“Within 30 miles of this place, there are at least four other facilities where immigrants are detained: Essex, Monmouth, Delaney Hall and Hudson, which has the distinction of being named one of the 10 worst detention facilities in the country,” Phipps, who is an immigration attorney as well as a minister, told the gathering in front of the Elizabeth Detention Center. “The terrible secret is that immigration detention has become a very profitable business for companies and county governments.”

“More than two-thirds of immigrants are detained in so-called contract facilities owned by private companies, such as this one and Delaney Hall,” she went on. “The rise of the prison industrial complex has gone hand in hand with the aggrandizing forces of Immigration and Customs Enforcement, or ICE, which, by the way, has filed suit against the very government it is supposed to be working for because they were told to exercise prosecutorial discretion in their detention practices.” [Click here to see more about the lawsuit, in which 10 ICE agents attack the administration’s easing of government policy on those who illegally entered the United States as children.]

There is an immigration court inside the Elizabeth facility, although the roar of the planes lifting off from the nearby Newark Airport forces those in the court to remain silent every three or four minutes until the sound subsides. Most of those brought before the court have no legal representation and are railroaded through the system and deported. Detainees, although most have no criminal record beyond illegal entry into the United States, wear orange jumpsuits and frequently are handcuffed. They do not have adequate health care. There are now some 5,000 children in foster care because their parents have been detained or deported, according to the Applied Research Center’s report “Shattered Families.” The report estimates that this number will rise to 15,000 within five years.

“I am in family court once every six to eight weeks representing some mother who is surrendering custody of her child to somebody else because she does not want to take that child back to the poverty of Guatemala, Honduras or El Salvador,” Phipps said when we spoke after the rally. “She has no option. She does not want her child to live in the same poverty she grew up in. It is heartbreaking.”

We have abandoned the common good. We have been stripped of our rights and voice. Corporations write our laws and determine how we structure our society. We have all become victims. There are no politicians or institutions, no political parties or courts, that are independent enough or strong enough to resist the corporate onslaught. Greater and greater numbers of human beings will be consumed. The poor, the vulnerable, the undocumented, the weak, the elderly, the sick, the children will go first. And those of us watching helplessly outside the gates will go next.

I Ain't Got No Home in this World Anymore

Equal Opportunity, Our National Myth

By JOSEPH STIGLITZ

http://opinionator.blogs.nytimes.com/2013/02/16/equal-opportunity-our-national-myth/

[…]

The gap between aspiration and reality could hardly be wider. Today, the United States has less equality of opportunity than almost any other advanced industrial country. Study after study has exposed the myth that America is a land of opportunity. This is especially tragic: While Americans may differ on the desirability of equality of outcomes, there is near-universal consensus that inequality of opportunity is indefensible. The Pew Research Center has found that some 90 percent of Americans believe that the government should do everything it can to ensure equality of opportunity.

Perhaps a hundred years ago, America might have rightly claimed to have been the land of opportunity, or at least a land where there was more opportunity than elsewhere. But not for at least a quarter of a century. Horatio Alger-style rags-to-riches stories were not a deliberate hoax, but given how they’ve lulled us into a sense of complacency, they might as well have been.

It’s not that social mobility is impossible, but that the upwardly mobile American is becoming a statistical oddity. According to research from the Brookings Institution, only 58 percent of Americans born into the bottom fifth of income earners move out of that category, and just 6 percent born into the bottom fifth move into the top. Economic mobility in the United States is lower than in most of Europe and lower than in all of Scandinavia.

Another way of looking at equality of opportunity is to ask to what extent the life chances of a child are dependent on the education and income of his parents. Is it just as likely that a child of poor or poorly educated parents gets a good education and rises to the middle class as someone born to middle-class parents with college degrees? Even in a more egalitarian society, the answer would be no. But the life prospects of an American are more dependent on the income and education of his parents than in almost any other advanced country for which there is data.

How do we explain this? Some of it has to do with persistent discrimination. Latinos and African-Americans still get paid less than whites, and women still get paid less than men, even though they recently surpassed men in the number of advanced degrees they obtain. Though gender disparities in the workplace are less than they once were, there is still a glass ceiling: women are sorely underrepresented in top corporate positions and constitute a minuscule fraction of C.E.O.’s.

Discrimination, however, is only a small part of the picture. Probably the most important reason for lack of equality of opportunity is education: both its quantity and quality. After World War II, Europe made a major effort to democratize its education systems. We did, too, with the G.I. Bill, which extended higher education to Americans across the economic spectrum.

But then we changed, in several ways. While racial segregation decreased, economic segregation increased. After 1980, the poor grew poorer, the middle stagnated, and the top did better and better. Disparities widened between those living in poor localities and those living in rich suburbs — or rich enough to send their kids to private schools. A result was a widening gap in educational performance — the achievement gap between rich and poor kids born in 2001 was 30 to 40 percent larger than it was for those born 25 years earlier, the Stanford sociologist Sean F. Reardon found.

Of course, there are other forces at play, some of which start even before birth. Children in affluent families get more exposure to reading and less exposure to environmental hazards. Their families can afford enriching experiences like music lessons and summer camp. They get better nutrition and health care, which enhance their learning, directly and indirectly.

Americans are coming to realize that their cherished narrative of social and economic mobility is a myth.

Unless current trends in education are reversed, the situation is likely to get even worse. In some cases it seems as if policy has actually been designed to reduce opportunity: government support for many state schools has been steadily gutted over the last few decades — and especially in the last few years. Meanwhile, students are crushed by giant student loan debts that are almost impossible to discharge, even in bankruptcy. This is happening at the same time that a college education is more important than ever for getting a good job.

Young people from families of modest means face a Catch-22: without a college education, they are condemned to a life of poor prospects; with a college education, they may be condemned to a lifetime of living at the brink. And increasingly even a college degree isn’t enough; one needs either a graduate degree or a series of (often unpaid) internships. Those at the top have the connections and social capital to get those opportunities. Those in the middle and bottom don’t. The point is that no one makes it on his or her own. And those at the top get more help from their families than do those lower down on the ladder. Government should help to level the playing field.

Americans are coming to realize that their cherished narrative of social and economic mobility is a myth. Grand deceptions of this magnitude are hard to maintain for long — and the country has already been through a couple of decades of self-deception.

Without substantial policy changes, our self-image, and the image we project to the world, will diminish — and so will our economic standing and stability. Inequality of outcomes and inequality of opportunity reinforce each other — and contribute to economic weakness, as Alan B. Krueger, a Princeton economist and the chairman of the White House Council of Economic Advisers, has emphasized. We have an economic, and not only moral, interest in saving the American dream.

Policies that promote equality of opportunity must target the youngest Americans. First, we have to make sure that mothers are not exposed to environmental hazards and get adequate prenatal health care. Then, we have to reverse the damaging cutbacks to preschool education, a theme Mr. Obama emphasized on Tuesday. We have to make sure that all children have adequate nutrition and health care — not only do we have to provide the resources, but if necessary, we have to incentivize parents, by coaching or training them or even rewarding them for being good caregivers. The right says that money isn’t the solution. They’ve chased reforms like charter schools and private-school vouchers, but most of these efforts have shown ambiguous results at best. Giving more money to poor schools would help. So would summer and extracurricular programs that enrich low-income students’ skills.

Finally, it is unconscionable that a rich country like the United States has made access to higher education so difficult for those at the bottom and middle. There are many alternative ways of providing universal access to higher education, from Australia’s income-contingent loan program to the near-free system of universities in Europe. A more educated population yields greater innovation, a robust economy and higher incomes — which mean a higher tax base. Those benefits are, of course, why we’ve long been committed to free public education through 12th grade. But while a 12th-grade education might have sufficed a century ago, it doesn’t today. Yet we haven’t adjusted our system to contemporary realities.

The steps I’ve outlined are not just affordable but imperative. Even more important, though, is that we cannot afford to let our country drift farther from ideals that the vast majority of Americans share. We will never fully succeed in achieving Mr. Obama’s vision of a poor girl’s having exactly the same opportunities as a wealthy girl. But we could do much, much better, and must not rest until we do.

Black Panthers and Young Patriots