The meltdown of Enron, the giant energy trading firm, which recently ranked as the seventh largest U.S. corporation—now its largest ever bankruptcy—is one of the most startling events in U.S. financial history. Only a few months ago Enron was the toast of Wall Street. It was the symbol of the New Economy and of the deregulation of both finance and energy markets. Its former CEO, Jeffrey K. Skilling, promoted the idea that assets were not what made a company valuable. Instead what counted was a corporation’s intellectual capital. He sold the idea of Enron as a nimble, highly-leveraged, “asset-light” company engaged in aggressive internet-based trading. The point is that this huge and highly regarded corporation did not make anything. Nor did it perform a service like distributing energy. It was in essence a purely speculative enterprise, making money through trading made possible by the deregulation of a basic consumer need (electricity). And U.S. business bought it! For six years in a row, the editors of Fortune magazine selected Enron as the “most innovative” among the magazine’s “most admired” corporations. Enron was a principal fundraising source for President George W. Bush’s electoral campaign. It was a big winner in California’s electrical deregulation crisis, which generated skyrocketing electricity prices and huge profits for big energy traders. Enron’s corporate empire was underwritten by some of the biggest U.S. banks, including J. P. Morgan Chase and Citigroup | more…
Until recently, a pervasive sense of there-is-no-alternative left us with a
debilitating pessimism. Seattle was, arguably, the long-awaited antidote. Where social democracy had seen the power of capital and was cowed by it, the Seattle protesters recognized that building a decent world meant actively resisting it. In this defiant understanding that resistance creates the space for hope, the chain of protests initiated by Seattle fell in with a tradition that saw realism in historic terms, rather than in a fetishism of the present | more…
The world changed on September 11. That’s not just media hype. The way some historians refer to 1914–1991 as the “short twentieth century,” many are now calling September 11, 2001, the real beginning of the twenty-first century. It’s too early to know whether that assessment will be borne out, but it cannot simply be dismissed | more…
In this article we will argue that the Japanese economic crisis is connected to a process of oligopolistic accumulation and to Japan’s role as the regional economic hegemon in East Asia. The combination of these two factors generates a classic Baran-Sweezy-Magdoff perspective on the crisis in Japan | more…
Bill Ayers, Fugitive Days: A Memoir (Beacon Press, 2001), 292 pages, $24.00 cloth.
“It is difficult to communicate at a distance the sense of helplessness and suppressed rage we all felt by the end of 1967,” historian David Schalk recently recalled of the sixties U.S. antiwar Movement. I certainly would not know. I was not even born then. Yet, if organizing meetings held after September 11 are any indication, the legacy of just this movement looms large. Seattle veterans have started talking about a global peace and justice movement. A recent e-mail even proclaimed, “you don’t have to be a weatherman to know which way the wind is blowing.” And one wonders if it’s time for a pause to consider the story of the underground struggle against the Vietnam war | more…
Does it make any sense to speak in terms of socialist renewal at the beginning of the twenty-first century? The massive anti-capitalist protests from Seattle to Prague to Quebec that captured the world’s attention at the beginning of the new millennium attest to the fact that the spirit of revolution, one of the central facets of political life over the previous centuries, is hardly a thing of the past. If “the revolutionary spirit of the last centuries, that is, the eagerness to liberate and to build a new house where freedom can dwell, [which] is unprecedented and unequaled in all prior history” properly begins with the bourgeois revolutions of the late eighteenth century, few would dispute that this eagerness for fundamental social transformation was in very large part carried into the world of the twentieth century by socialism’s revolutionary aspirations to transcend the capitalist order itself. | more…
