Trouble, Trouble, Debt, and Bubble
The questions regarding U.S. macroeconomic policy these days come down to whether the country can keep borrowing. Can consumers keep spending by increasing their debt level? Can the federal government keep running a large budget deficit without serious problems developing? Can the U.S. current account deficit keep growing? Will foreigners keep buying government bonds to cover this growing debt? If the answer is no to such questions, we can expect serious trouble and not just for the United States but for the rest of the world, which has grown used to the United States as the consumer of last resort. The United States buys 50 percent more than it sells overseas, enough to sink any other economy. In another economy, such a deficit would lead to a severe devaluation of the currency, sharply inflating the price of imports and forcing the monetary authorities to push interest rates up considerably | more…
The Neoliberal ‘Rebirth’ of Development Economics
By Rémy Herrera
velopment economics, as a branch of economics that attempts to show how the world’s poor economies can develop, had its origins in the 1940s and 1950s. One of its earliest ideas was that the economies of the less developed countries were mired in a cycle of poverty and needed a “big push” to develop. This push was seen as a large boost in investment, helped by the state’s infrastructural and social spending, as well as by private foreign capital spending and aid from the governments of the developed nations | more…
Capitalism Is Rotten to the Core
Immanuel Ness, Immigrants, Unions, and the New U. S. Labor Market (Temple University Press, 2005), 230 pages, cloth $59.50, paper $21.95.
Howard Karger, Shortchanged: Life and Debt in the Fringe Economy (Berrett~Koehler Publishing, 2005), 252 pages, cloth $24.95.
Howard Karger, Shortchanged: Life and Debt in the Fringe Economy (Berrett~Koehler Publishing, 2005), 252 pages, cloth $24.95.
The widening and deepening of capitalism, which many economists misname globalization, has had traumatic impacts on workers. Sped up by what has been called neoliberalism (basically, the political program of modern global capital), the growing penetration of capitalist production and consumption relationships around the globe has literally pitched workers from pillar to post. For example, the North American Free Trade Agreement (NAFTA) has forced hundreds of thousands of Mexican peasants and wage workers to abandon their home country and migrate to the United States. Similarly, government austerity and “free market” programs—curbing food and health subsidies to the poor, closing and selling state enterprises, suppression of worker and peasant protests, and the like—in countries like India and China have deprived many workers of what security they had attained and pushed peasants from their land into cities | more…
April 2006 (Volume 57, Number 11)
By The Editors
As we write this in late February, threats of a U.S. military intervention in Iran are intensifying in response to Washington’s claims that Iran is attempting to develop nuclear weapons capabilities. The International Atomic Energy Agency has voted to take the issue of what it views as Iran’s noncompliance with the Nuclear Nonproliferation Treaty Safeguards Agreement to the United Nations Security Council in early March. Meanwhile, the Bush administration has repeatedly stated that a military strike against Iran by the United States is now “on the table.” Washington’s waving of its big stick coupled with its feeding of misinformation to a U.S. media system that has not hesitated to pass these distortions on to the general public have already had their effect. A Los Angeles Times/Bloomberg poll taken in January indicated that “57% of Americans favor military intervention if Iran’s Islamic government pursues a program that could enable it to build nuclear arms” (Los Angeles Times, January 27, 2006). A few days later President Bush declared in his State of the Union address that “the Iranian government is defying the world with its nuclear ambitions, and the nations of the world must not permit the Iranian regime to gain nuclear weapons. America will continue to rally the world to confront these threats.” | more…
Neoliberalism: Myths and Reality
Agreements like the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO) have enhanced transnational capitalist power and profits at the cost of growing economic instability and deteriorating working and living conditions. Despite this reality, neoliberal claims that liberalization, deregulation, and privatization produce unrivaled benefits have been repeated so often that many working people accept them as unchallengeable truths. Thus, business and political leaders in the United States and other developed capitalist countries routinely defend their efforts to expand the WTO and secure new agreements like the Free Trade Area of the Americas (FTAA) as necessary to ensure a brighter future for the world’s people, especially those living in poverty | more…
The Hidden History of the Americas
By Richard Peet
Charles C. Mann, 1491: New Revelations of the Americas before Columbus (New York: Alfred A. Knopf, 2005), 480 pages, hardcover $30.00.
Countless, almost perfectly round, forested islands dot the remote, watery plain of the Beni in eastern Bolivia. A millennium ago the islands were linked by causeways, parts of an intricate landscape management system tended by thousands of highly organized workers. These mounds do not have their origins in geo-morphological forces, but originate instead in human logic, in anthro-morphology. For even simple excavation reveals that they are built from broken pottery. Each pile, and there are hundreds, is larger than Monte Testaccio, a hill of broken pots southeast of classical Rome, serving as a garbage dump for the imperial city. Simply extending from the volume of ceramics piled on the Beni suggests that the plain was home to a highly structured society. Beginning three thousand years ago, an Arawak-speaking people created a civilization that, at its height, was populated by a million people walking the causeways wearing “long cotton tunics, [with] heavy ornaments dangling from their waists and necks” (12). The Beni was one of humankind’s greatest works of landscape artistry. Yet it was unknown until recently even by its contemporary inhabitants, the Siriono. For the builders of the mounds and the caretakers of the dikes disappeared just before the Spanish invaders arrived. Its discovery awaited Bill Deneven, a geography graduate student at the University of California, Berkeley, who flew over the area in 1961 and was astonished to see great regularities in the landscape that could only be human in origin | more…
Rebellion of a New Generation
Dan Berger, Chesa Boudin, and Kenyon Farrow, eds., with preface by Bernardine Dohrn, Letters from Young Activists: Today’s Rebels Speak Out (New York: Nation Books, 2005), 256 pages, paperback $14.95.
One frequently comes across handwringing articles in the mainstream media decrying the supposed apathy of my generation. Too often these are written by older liberals, nostalgic for their own bygone days of protest (and forgetful of the years of small-scale organizing that led to the social upheaval of those days). Sometimes they are written by young people, who believe themselves alone in their dissent. Ironically, these lamentations never seem to recognize what those of us who are involved in social movements today can see quite clearly: that there is a growing sense among many young people that something is deeply wrong with the society we live in—and more and more, that such knowledge comes with the desire to take a stand | more…
March 2006 (Volume 57, Number 10)
By The Editors
On January 19–23 the African session of the Polycentric World Social Forum— held separately in 2006 in Africa, Asia, and the Americas—took place in Bamako, Mali. On January 18–19 on the eve of the World Social Forum in Mali a group of around eighty antiglobalization political activists and intellectuals, including Marxist economists and organizers, met to conduct sessions independent of the World Social Forum itself, under the auspices of the Third World Forum, the World Forum for Alternatives, and the Forum for Another Mali. Samir Amin, director of the Third World Forum and author of the Review of the Month in this issue of MR was the leading organizer of the pre-WSF gathering, which he referred to as a “Peoples’ Bandung Conference” in honor of the recent fiftieth anniversary of the conference of nonaligned nations in Bandung, Indonesia in 1955 | more…
The Millennium Development Goals: A Critique from the South
By Samir Amin
The Millennium Development Goals (MDGs) were adopted by acclamation in September 2000 by a resolution of the United Nations General Assembly called “United Nations Millennium Declaration.” This procedural innovation, called “consensus,” stands in stark contrast to UN tradition, which always required that texts of this sort be carefully prepared and discussed at great length in committees. This simply reflects a change in the international balance of power. The United States and its European and Japanese allies are now able to exert hegemony over a domesticated UN. In fact, Ted Gordon, well-known consultant for the CIA, drafted the millennium goals! | more…
Why the United States Promotes India’s Great-Power Ambitions
In March 2005, U.S. Secretary of State Condoleezza Rice announced Washington’s decision to “make India a global power.” No doubt U.S. arms manufacturers can now look forward to large contracts from India; but this course is dictated by broader strategic considerations | more…
Fixed, Footloose, or Fractured: Work, Identity, and the Spatial Division of Labor in the Twenty-First Century City
By Ursula Huws
The combination of technological change and globalization is bringing about fundamental changes in who does what work where, when, and how. This has implications which are profoundly contradictory for the nature of jobs, for the people who carry them out, and hence for the nature of cities | more…
Privatizing Education
Education is an essential part of modern economic progress, yet in recent decades, the right wing has consistently been unfriendly to public education. For example, the Walton family’s donation of $20 billion to help conservative causes was weighted toward the privatization of public education.… The economic effects of privatization will not be felt immediately. Over time, however, as a larger share of the workforce suffers the handicap of inferior education, the negative effect on all aspects of society will be unmistakable. | more…
Rebel in the House: The Life and Times of Vito Marcantonio
Vito Marcantonio was the most consequential radical politician in the United States in the twentieth century. Elected to Congress from New York’s ethnically Italian and Puerto Rican East Harlem slums, Marcantonio, in his time, held office longer than any other third-party radical, serving seven terms from 1934 to 1950. Colorful and controversial, Marcantonio captured national prominence as a powerful orator and brilliant parliamentarian. Often allied with the U.S. Communist Party (CP), he was an advocate of civil rights, civil liberties, labor unions, and Puerto Rican independence. He supported social security and unemployment legislation for what later was called a “living wage” standard. And he annually introduced anti-lynching and anti–poll tax bills a decade before it became respectable. He also opposed the House Un-American Activities Committee, redbaiting, and antisemitism, and fought for the rights of the foreign born. He was a bold outspoken opponent of U.S. imperialism | more…