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Political Economy

The State of Welfare: United States 2003

The United States has the most regressive system of welfare for poor people among developed nations in the twenty-first century, and in recent years it has become even more punitive. The world’s self-professed leading democracy lacks a national health care policy, a universal right to health care, and a comprehensive family policy. Welfare applicants are subjected to personal intrusions, arcane regulations, and constant surveillance, all designed to humiliate recipients and deter potential applicants. In recent years there has been a significant decrease in cash grants to the unemployed and underemployed who do not qualify for unemployment insurance. The reorganization of the welfare state began under the Clinton administration with the devolution of federal policies to the states and massive cutting of welfare rolls. The Bush administration, while distracted by September 11 and imperial ambitions, has deepened the cuts and introduced important new policies facilitating access of private organizations to federal grants. The quickly changing economic and geopolitical climate has also generated a profound crisis in the ability of state and local agencies to provide adequate human services to the unemployed and growing ranks of impoverished citizens and immigrants | more…

Capitalism as a World Economy: An Interview with Harry Magdoff

Harry Magdoff sat down to talk in front of a video camera in April 2003, three weeks before the conference “Imperialism Today” sponsored by Monthly Review in honor of his ninetieth birthday. An edited version of his remarks would be shown on a large screen at the start of the conference. But Harry has much to say that will be left on the cutting room floor, not because it lacks relevance, but because the time for the video is short, and a good portion of it will be devoted to how he became a socialist. Here, then, are Harry’s thoughts on capitalism, imperialism, the United States—and Iraq. (Note: the transcript of the interview was edited in July 2003 under Harry’s supervision to fill in a number of details.) | more…

Capitalism and Incarceration Revisited

“Capitalism and Incarceration,” written by the author and published in Monthly Review twenty years ago (March 1983), analyzed the relationship between the capitalist economy and the prison system in America and came to an indisputable conclusion: “The overall trends and year-by-year correspondence between economic conditions and imprisonment establish quite clearly the relationship between capitalism and incarceration—prisons under capitalism are, as Marx pointed out long ago, dumping grounds of the industrial reserve army.” | more…

The Inhuman State of U.S. Health Care

The health sector of the United States is in profound disarray. Even though the United States spends more on health care (14 percent of its GNP) than any other country, we still have problems that no other developed capitalist country faces. Let me list some of them. The first and most overwhelming problem is that no less than forty-four million of our people have no form of health benefits coverage whatsoever. The majority of them are working people, and their children, who cannot afford to pay the health insurance premium that would enable them to get care in time of need. Many of them work for small companies that cannot or will not pay their part of the health insurance premium. Because these individuals cannot pay for insurance, they do not get needed care, and many die as a consequence. The most credible estimate of the number of people in the United States who have died because of lack of medical care was provided by a study carried out by Professors David Himmelstein and Steffie Woolhandler (New England Journal of Medicine 336, no. 11 [1997]). They concluded that almost 100,000 people died in the United States each year because of lack of needed care—three times the number of people who died of AIDs. It is important to note here that while the media express concern about AIDs, they remain almost silent on the topic of deaths due to lack of medical care. Any decent person should be outraged by this situation. How can we call the United States a civilized nation when it denies the basic human right of access to medical care in time of need? No other major capitalist country faces such a horrendous situation | more…

The New Age of Imperialism

Imperialism is meant to serve the needs of a ruling class much more than a nation. It has nothing to do with democracy. Perhaps for that reason it has often been characterized as a parasitic phenomenon-even by critics as astute as John Hobson in his 1902 classic, Imperialism: A Study. And (rom there it is unfortunately all too easy to slide into the crude notion that imperialist expansion is simply a product of powerful groups of individuals who have hijacked a nation’s foreign policy to serve their own narrow ends. | more…

The Two Wings of the Eagle

Peter Marcuse has written (Monthly Review, July-August 2000) that globalization “is a nonconcept in most usages: a simple catalogue of everything that seems different since, say, 1970, whether advances in information technology, widespread use of air freight, speculation in currencies, increased capital flows across borders, Disneyfication of culture, mass marketing, global warming, genetic engineering, multinational corporate power, new international division of labor, reduced power of nation-states, or post-Fordism.” The problem is more than the careless use of words, the inclusion of everything means the term means little or nothing. Most importantly, “the term fogs any effort to separate cause from effect, to analyze what is being done, by whom, to whom, for what and with what effect.” To answer these questions it is necessary to reframe the discussion. Neither the amorphous globalization discourse of everyday social science nor the previously dominant one of nation-state sovereignty are satisfactory to the task | more…

Construction of an Enemy

The aggressive measures instituted by the Bush administration against immigrants and visitors of Muslim faith, or from primarily Muslim Arab and South Asian countries, seem aimed less at their putative foreign targets than at the hearts and minds of our domestic population. Packaged as post-September 11 law enforcement, the new racial profiling has netted few if any prosecutions for terrorist acts, but has done a great deal to demonize Arabs, South Asians, and Muslims, to dehumanize them, and to construct them as the enemy of America in the twenty-first century. Once the state successfully constructs an enemy group, it can justify detentions without charge, military occupation, and other drastic means of waging war against that other, the enemy | more…

June 2003 (Volume 55, Number 2)

Notes from the Editors

The chief, indeed the only, justification that Washington offered for its invasion of Iraq during its build-up for war between September 2002 and March 2003,was the need to “disarm” an Iraqi regime that Washington contended had broken UN resolutions banning weapons of mass destruction in that country. The problem, though, was that there was no hard evidence that Iraq, which had effectively destroyed its weapons of mass destruction in the 1990s under UN supervision, had any such weapons—or if it did that they were functional and constituted a significant threat. Nevertheless, the Bush administration continued to insist (based on speculation, hearsay, and what turned out to be fabricated evidence) that Iraq had such banned weapons in significant quantities and was actually deploying them. In an extraordinary propaganda campaign in which the whole mainstream media took part, the U.S. population was led to believe that they were in imminent danger of attack from these phantom weapons and had no choice but to support a pre-emptive invasion of that country | more…

The ‘Left-Wing’ Media?

If we learn nothing else from the war on Iraq and its subsequent occupation, it is that the U.S. ruling class has learned to make ideological warfare as important to its operations as military and economic warfare. A crucial component of this ideological war has been the campaign against “left-wing media bias,” with the objective of reducing or eliminating the prospect that mainstream U.S. journalism might be at all critical toward elite interests or the system set up to serve those interests. In 2001 and 2002, no less than three books purporting to demonstrate the media’s leftward tilt rested high atop the bestseller list. Such charges have already influenced media content, pushing journalists to be less critical of right-wing politics. The result has been to reinforce the corporate and rightist bias already built into the media system. | more…

What Recovery?

Only a few years ago it was widely suggested that the capitalist economy had entered a new economic era. The rapid economic growth experienced during the brief period of the late 1990s, we were told, would become virtually endless, spurred on by rising productivity led by high technology and the New Economy. The circumstances that now confront us following the bursting of the speculative bubble could not be more different. The country is once again mired in economic stagnation. In the present “recovery”—if indeed we can call it that—new jobs remain few and far between. Of the four sources of demand that create economic activity—personal consumption, business investment, government spending, and net exports—it is mainly consumption, backed by increasing debt, that is currently keeping the economy from slipping deeper into stagnation. Indeed, many business leaders and economists fear the return of recession—referred to as the likelihood of a “double dip.” Behind this fear lies excess capacity in almost every industry, the absence of new growth stimuli, slow growth or recession in most of the rest of the world, and the aftereffects of the bursting of the speculative stock market bubble. All of this suggests that there is more at stake than the traditional business cycle. At the very least, there is reason to expect the continuation of the tendency of stagnation. | more…