Wednesday, September 2, 2020

California Governor Newsom continues murderous policies as COVID-19 cases in state reach 700,000





https://www.wsws.org/en/articles/2020/08/31/cali-a31.html

By Peter Ross
31 August 2020

No less than in Republican-controlled states, the Democratic Party administration of California Governor Gavin Newsom has, since the beginning of the pandemic, acted to protect the interests of the ultra-wealthy. It has long since abandoned any serious effort to contain the spread of the virus.

On May 7, six weeks after California became the first state to issue shelter-in-place orders, Newsom announced that the state faced a $54 billion revenue shortfall. One day later, with the state averaging over 1,700 new cases per day, the administration began planning a phased reopening.

On June 12, as the number of cases in the state passed 125,000, with more than 3,600 new cases per day, California moved to stage three of the reopening, allowing indoor businesses such as restaurants, bars and gyms to reopen. During this period, the infection rate exploded from about 1,700 new cases per day on May 8 to more than 5,300 on June 28.

After peaking at over 9,000 new cases per day in late July, and following a renewed closure of bars, indoor dining and gyms, the infection rate now stands at about 6,000 per day. But the push to reopen workplaces and schools threatens to bring about yet another wave of cases.

The level of testing, at 85,000 per day, remains grossly inadequate to monitor, let alone contain, the pandemic.

On August 13, the Los Angeles Times published a timeline titled “How a rush to reopen drove Los Angeles County into a health crisis.” It documented the direct impact of the reopening policy on the number of infections and deaths in Los Angeles. At the time of that exposé, in Los Angeles alone 5,000 had died from COVID-19. In the ensuing three weeks that number has increased by 15 percent.

Despite the alarming data, last Friday Newsom announced a four-tier reopening process that kicks off today with the reopening of hair salons, barber shops and retail stores to 25 percent capacity, to be progressively extended. The measure is being touted as a return to pre-pandemic “freedom”—a clear concession to right-wing complaints that necessary science-based restrictions are a limitation on personal liberties. In reality, the organized opposition to public health-based restrictions in the name of “freedom” is being promoted by the corporate elite in line with its murderous return-to-work policy.

The unfolding economic and fiscal disaster, which the state government has seized upon to deepen its attacks on public education and social infrastructure, threatens to plunge millions of Californians into destitution. The Newsom administration estimates that the 2020-2021 fiscal year will see a 24.5 percent unemployment rate, a nine percent drop in personal income, and a 21 percent decline in new housing permits. These projections are optimistic in light of social reality.

In Los Angeles County, unemployment has only slightly declined—from 20 percent in April to 17.5 percent in July, which means a million people are without employment. A 2020 study by UCLA’s Institute on Inequality and Democracy estimates that almost a half million people living in rental housing in Los Angeles County have no income and are at a high risk of homelessness.

California’s homeless population was estimated to be about 150,000 in 2019, a number widely believed to be a drastic underestimation. The homeless population increased by 21,000 in 2019 and is expected to grow by another 30,000 this year as a result of the mass unemployment and economic devastation caused by the pandemic. The homeless, many of whom suffer from preexisting medical conditions, are among the most vulnerable to infectious disease.

With 154 billionaires and more wealth than all but the four wealthiest countries in the world, California is at once the richest and the poorest state in the country. According to the United States Census Bureau, after adjusting for the cost of living, California has the highest poverty rate in the nation, with an average of 18.2 percent of its 39.5 million residents living in poverty over the last three years. While the median income in the state is slightly above the national median, costs for housing, electric power and essential goods are far higher than the national average.

In a recent report, the Public Policy Institute of California found that more than 35 percent of the state, almost 14 million people, live in poverty or “near-poverty.” This section of the population, subjected to poor housing, inadequate medical care and unsafe working conditions, confronts both higher infection and fatality rates than the general population. In July, more than 300 workers—three quarters of the workforce—were infected at a downtown Los Angeles sweatshop owned by Los Angeles Apparel.

The pandemic has swept through California’s notoriously overcrowded prison system, infecting more than 9,300 inmates and 2,200 staff members. Close confinement, poor medical care and limited access to personal protective equipment have led to an infection rate almost five times higher among state prisoners than in the general population. California’s prison population stood at about 117,000 in April 2020, with 32 out of 35 prisons holding incarcerated populations above their design capacities.

A particularly deadly outbreak at the California Institution for Men has resulted in over 1,000 infections and 20 deaths. The transfer of 121 inmates from this prison to San Quentin State Prison resulted in an even deadlier outbreak. More than 2,100 prisoners at San Quentin, half its population at the start of the outbreak, have so far been infected.

After decades of stagnant wages and cuts to health care and social services, working people have been made to bear the brunt of the recent $54 billion cut in the state budget, which includes a 10 percent pay cut for state employees, delayed payments to public schools, a $1.7 billion cut in funding for public colleges and universities, and a $248 million cut from housing programs. Newsom, who pledged in mid-May to take a salary cut in solidarity with state workers, has continued to receive his full monthly salary of $17,479.

At an August news conference, Newsom had the audacity to claim that “there is no money sitting in the piggy bank” to pay unemployment benefits. But between March and June, the same period during which the virus was spiking throughout the state, California’s 154 billionaires saw their net wealth increase by about $170 billion, more than triple the budget shortfall.

The trade unions have in every instance acceded to the state’s demands, including a 9.23 percent cut in state workers’ salaries and a suspension of state contributions to retirees’ health care, agreed to by the state’s largest public employees union, Service Employees International Union (SEIU) Local 1,000. Cal Fire Local 2881 has agreed to a 7.5 percent pay cut.

The trade unions have likewise supported plans to resume in-person instruction in the public school system. While the Los Angeles Unified School District, the second largest in the nation, has opened the school year with fully online instruction, the United Teachers Los Angeles (UTLA), which sold out last year’s teachers strike and paved the way for more budget cuts and school privatizations, is collaborating in school reopening plans.

In a July report, the UTLA proposed a list of half-measures, including keeping students in small “pods,” reducing class sizes, and requiring masks for students and staff. The call for “pods” is practically identical to the Newsom administration’s guidelines, which call for children to be grouped into learning “cohorts” of no more than 14 children and no more than two supervising adults.

The California Teachers Association has likewise called, in the vaguest terms possible, for hand washing, face coverings, social distancing inside classrooms, and “mental health counseling.” Even if these inadequate measures were enforced, they would do little to make classrooms safe for students and educators.

Statewide, counties are allowed to reopen schools if they are off the state’s COVID-19 watch list for two weeks. Orange County and San Diego County, two of the largest counties in the state, are both already off the list. On Monday, the Orange County Board of Education voted to allow schools to resume in-person instruction next month, without masks or social distancing. A group of teachers and parents protested outside the meeting and gathered 26,000 signatures urging the board to reconsider.

According to Los Angeles Public Health Director Barbara Ferrer, the Newsom administration is giving local health officials the ability to grant waivers to school districts that permit schools to reopen for students in grades K-6 once case rates fall under 200 per 100,000 people. This threshold—twenty times what the Centers for Disease Control defines as low incidence—has been chosen not out of consideration for the safety of students and educators, but in order to provide a justification for reopening. On Tuesday, the case rate in Los Angeles County was 196 per 100,000 residents, just under the threshold.

Claims that children transmit the virus less frequently than adults have been shown to be fraudulent. A paper published in the Journal of the American Medical Association found that children under the age of five carry higher amounts of the virus in their nasal passages than older children and adults, while an extensive contact tracing study conducted in Italy found that children younger than 15 years old transmit the virus most efficiently.

The overwhelming majority of parents and educators are opposed to resuming in-person instruction. “I don’t think a waiver is appropriate at this time given the rate of transmission and the number of cases,” said Mill Valley parent David Howard, “You know, you get a bunch of kids in a classroom with stagnant air, that’s a petri dish to spread the virus.”

Marianne WIlliamson On Why She Fears The Dems Will Lose

 

https://www.youtube.com/watch?v=Zt2PNCkV37c



Fear and uncertainty dominate Jackson Hole central bankers’ meeting





https://www.wsws.org/en/articles/2020/08/31/hole-a31.html

By Nick Beams
31 August 2020

The annual Jackson Hole conclave of central bankers, which concluded over the weekend, underscored the incapacity of global financial authorities to devise any policies either to bring about economic growth or counter the mounting contradictions in the financial system.

Reporting on the meeting, held in virtual format this year because of the COVID-19 pandemic, the Financial Times noted: “It was the head of Singapore’s monetary authority who best summed up the biggest fear gripping the virtual Jackson Hole conference this year.

“‘We’re not going back to the same world,’ Tharman Shanmugaratnam warned.’”

The central initiative at the gathering was the decision by the Fed’s key policy-making body to maintain interest rates at their ultra-low levels for an indefinite period and keep pumping money into the financial system.

The decision, announced by the Federal Open Market Committee as the conclave opened and elaborated on in a keynote speech by Fed Chair Jerome Powell, was in effect a guarantee to Wall Street that its demand for “forward guidance”—lower interest rates for longer—would be met.

The Fed said it would no longer be guided by a 2 percent inflation rate limit in determining its interest policy, but would instead focus on an “average” rate of 2 percent, meaning that the cheap money regime could continue even if prices rose above that level.

As for dealing with the slump in the global economy—the most serious since the Great Depression—and combating the potential for further storms in the financial system following the market meltdown in mid-March, there were no answers, as underscored by the remarks of the Singapore finance minister.

“We’ve got to avoid a prolonged period of high levels of unemployment, and it’s a very real prospect,” he said. “It is not at all assured that we will get a return of tight labour markets even with traditional macroeconomic policy being properly applied.”

It was a significant comment because one of main themes in remarks by central bank chiefs was that monetary policy alone would not be sufficient to restore growth, and government intervention was needed to boost the economy. But, as Shanmugaratnam noted, even if “properly applied,” there were no guarantees of success.

According to the Financial Times, the notion that central bankers “need to face the reality of permanent upheaval and long-term economic damage” was the “main theme” of the event.

One of the most frequently cited academic papers produced for the meeting was prepared earlier this month by Colombia University academic Laura Veldkamp on the long-term effects of the COVID-19 pandemic.

The paper said that the biggest economic effects of the pandemic “could arise from changes in behaviour long after the immediate health crisis is resolved.” A potential source of such a long-lived change was a shift in the “perceived probability of an extreme, negative shock in the future,” and that “long-run cost for the US economy from this channel is many times higher than the estimates of the short-run losses in output.”

The paper continued: “This suggests that, even if a vaccine cures everyone in a year, the COVID-19 crisis will leave its mark on the US economy for many years to come.”

In other words, the pandemic was not only a trigger event, acting on the contradictions that had built up in the economy and financial system, but a transformative one as well.

With the Fed now having formally committed itself to the endless supply of cheap money to Wall Street, attention will turn to the European Central Bank (ECB), which is also conducting a strategic policy review, to see whether it goes down the same road.

While the governing council, under the presidency of Christine Lagarde, may be inclined to move in the same direction as the Fed, it would face certain opposition from Germany’s Bundesbank, which has expressed opposition to the easing of monetary policy.

A member of the governing council told the Financial Times, “we will look at it,” but the Bundesbank would be “very nervous” about it.

On May 5 this year the Constitutional Court in Germany ruled that the Bundesbank had to examine whether the bond-buying program of the ECB breached rules that it should not bail out individual governments. That potential crisis was averted, but the issue could be raised again if the ECB decides to replicate the actions of the Fed.

However, the ECB is likely to come under pressure to take further action because of indications that what limited recovery has taken place in the European economy is starting to slow, as COVID infections begin to rise again in parts of the euro zone.

Estimates for a growth in Spain are being revised down as infections increase, and there are warnings that the French economy could plateau below the level reached before the pandemic struck, at least until the end of 2022.

Bank of England Governor Andrew Bailey, reflecting the interests of UK finance capital in the City of London, indicated support for the Fed’s move, saying it should have been more expansive previously. Bailey again raised the possibility of negative interest rates.

“We are not out of firepower by any means, and to be honest, it looks from today’s vantage point that we were too cautious about our remaining firepower pre-COVID,” he said, adding that there are times when we “need to go big and go fast.”

The actions of the Fed have done nothing to boost the real economy, as an increasing number of companies announce that temporary layoffs will be made permanent.

The Wall Street Journal reported Saturday that a survey conducted by Randstad RiseSmart found that “nearly half of US employers that had furloughed or laid off staff because of COVID-19 are considering additional workplace cuts in the next 12 months.”

This indicates that the pandemic has been a trigger for a major restructuring of employment conditions.

The effects of the Fed’s policies and the further monetary easing to come are focused on the stock market, with Wall Street indexes rising to the record levels they achieved in February. The main beneficiaries have been the high tech companies—Apple, Microsoft, Alphabet (the owner of Google) and Facebook—which together comprise more than a fifth of the Nasdaq index.

The extent of their rise and growing financial and monopoly power is indicated by the results of an analysis carried out by Bank of America Global Research, reported by the business channel CNBC. It found that the market capitalization of the major US tech firms, now standing at $9.1 trillion, was greater than the market capitalization of the entire European market, including the UK and Switzerland, at $8.9 trillion. In an indication of the massive shift that has taken place, the research note pointed out that in 2007, total European market capitalization was four times that of US technology stocks.



The author also recommends:

Fed resets monetary policy framework to meet Wall Street’s demands
[28 August 2020]

Stage Set For October Surprise Attack On Venezuela

 

https://www.youtube.com/watch?v=zzioJ7sajiE



US military will not be involved in election crisis, top general claims





https://www.wsws.org/en/articles/2020/08/31/mili-a31.html

By Patrick Martin
31 August 2020

General Mark Milley, chairman of the Joint Chiefs of Staff, the highest-ranking US military officer, issued a statement Friday declaring that the US military would have no role in resolving any disputes that arise from the 2020 presidential election.

Responding to a letter from two Democratic members of the House of Representatives, Elissa Slotkin of Michigan and Mikie Sherrill of New Jersey, Milley wrote: “In the event of a dispute over some aspect of the elections, by law U.S. courts and the U.S. Congress are required to resolve any disputes, not the U.S. military. … I foresee no role for the U.S. Armed Forces in this process.

“I and every member of the Armed Forces take an oath to support and defend the Constitution of the United States, and to follow the lawful orders of the chain of command,” his statement continues. “We will not turn our backs on the Constitution of the United States.”
Slotkin and Sherrill sent letters to General Milley and Secretary of Defense Mark Esper after a hearing before the House Armed Services Committee in July over Trump’s threat to appeal to the military to suppress the protests which erupted after the murder of George Floyd by Minneapolis police on May 25.

On June 1 Trump threatened to invoke the Insurrection Act of 1807 and send the military onto the streets of American cities to suppress the protests. After encountering resistance from Esper, Milley and top military officers, both active and retired—because they regarded a military intervention as unprepared politically and practically—Trump pulled back and did not invoke the 1807 law, although he did have troops deployed to Washington, D.C. for several days.

That the top general should feel it necessary to issue a declaration “for the record,” so to speak, that the military will not decide the outcome of the 2020 presidential election, is an extraordinary manifestation of the political tensions in the United States.

Trump has repeatedly suggested that he will not accept an unfavorable outcome of the November 3 vote, and his Democratic rival, former Vice President Joe Biden, has said that the military might have to remove Trump from the White House on Inauguration Day, January 20, 2021, should he refuse to leave.

Biden’s comments and the posture of his supporters like Slotkin and Sherrill make the military, not the American people, the final arbiters of the 2020 election. This by itself demonstrates that neither capitalist party, Democratic or Republican, has any serious commitment to the preservation of democratic forms of rule.

As far as they go, Milley’s comments portrayed the military as adhering to constitutional procedures. “The Constitution and laws of the U.S. and the states establish procedures for carrying out elections, and for resolving disputes over the outcome of elections,” he wrote. “State and federal governments have qualified officials who oversee these processes according to those laws. We are a nation of laws. We follow the rule of law and have done so with regard to past elections, and will continue to do so in the future.”

Under the Constitution, President Trump has no role in determining the outcome of the 2020 election. The votes are counted under the supervision of state governments, not the federal government, and electors for the winning candidate in each state meet in each state capital in December to cast their votes. Each state’s electoral votes are formally counted by the new Congress in early January, and the winner of the Electoral College is sworn in as president on January 20.

There are numerous potential disruptions to this process. If the popular vote in a state is close, or if there is a claimed conflict between the in-person voting and the mail-in voting—highly likely given the nonstop vilification of mail ballots from the White House—the winner of the state’s electoral votes may be in dispute.

This is particularly the case in those states where control of the state government is divided, or where the party controlling the state government backs the candidate who lost the popular vote in that state. Among those states whose results could be in question are Pennsylvania, Michigan, Wisconsin, and North Carolina, all with Democratic governors and Republican state legislatures, and Ohio, Iowa, Florida, Georgia and Texas, with Republican-controlled state governments but Democrat Biden leading or tied in the polls.

The final decision on accepting the state electoral vote counts rests with the House of Representatives, which is controlled by the Democratic Party. In the event that the Electoral College is deadlocked, the House would select the president, but in a ballot in which each state’s delegation casts one vote, regardless of its size. Currently, despite their minority status, the Republicans control 26 state delegations to 22 for the Democrats, with two states divided evenly.

As this discussion makes clear, there are innumerable opportunities in this process for right-wing forces, working through both capitalist parties as well as outside them, to intervene and seek to manipulate the outcome.

The questions posed by Slotkin and Sherrill touch on some of these potential land mines. They asked Milley about the fact that the Uniform Code of Military Justice “criminalizes mutiny and sedition” and the requirement that the military follows only legitimate orders.

Milley replied, “I recognize that there is only one legitimate president of the United States at a time.” This begs the question of how the military would identify the “legitimate president,” since that is the very issue posed in the election and the transitional period from election to inauguration.

The top US general was also responding indirectly to an open letter issued by two well-known former officers, John Nagl and Paul Yingling, published August 11 in Defense One, which warned that Trump “is actively subverting our electoral system, threatening to remain in office in defiance of our Constitution” and appealed to Milley to prevent “the once-unthinkable scenario of authoritarian rule.”

Nagl and Yingling are hardly paragons of democracy. They came to prominence as lieutenant-colonels during the Iraq War, when they issued a scathing internal criticism of the rigidity and inflexibility of senior officers in the face of a mounting insurgency in the Iraqi population. Nagl went on to draft the Army’s official counterinsurgency manual under the direction of General David Petraeus.

Representatives Slotkin and Sherrill issued a brief statement welcoming Milley’s response. Their role in this exchange is politically significant. They are 2 of the 11 new Democratic members of Congress who came directly from the military-intelligence apparatus into the House of Representatives in the 2018 elections.

These CIA Democrats, as the WSWS has termed them, have played an increasingly prominent role in party affairs, first in providing a decisive push in favor of impeaching Trump over his delaying military aid to Ukraine for its war with Russian-backed separatists, then in backing Biden for the presidential nomination against more liberal rivals.

Slotkin, a longtime CIA officer who deployed three times to Iraq, cited her experience with the agency in making an assessment of how “the president, since late April or early May, has been laying down these seeds of doubt in the outcome of our elections,” adding, “There’s a long history and a dark history of having law enforcement, or uniform military present at the polls ...”

In other words, what the CIA has helped to organize in dozens of countries around the world—the use of the military and police to suppress democratic rights and overthrow governments—the former CIA agent now describes as the direction of US government policy under Trump.

The conflict between Trump and Slotkin is not about democracy vs. dictatorship, but about which form of authoritarianism is to be imposed on the American people: the personalist dictatorship of the would-be Mussolini, or a Democratic administration based on the backing of the military-intelligence apparatus and oriented toward war with Russia, China or both.



The author also recommends:

The CIA Democrats in the 2020 elections
[20 August 2020]

After the US election, an escalation of the Mideast war
[29 October 2014]

Ed Markey scores MASSIVE win over Joe Kennedy III in Massachusetts Democratic Senate Primary

 

https://www.youtube.com/watch?v=sN26kg9xlMk



2020: The Next Great Depression

 

https://www.youtube.com/watch?v=9CclatSvMT0