Naomi Klein, The Shock Doctrine: The Rise of Disaster Capitalism (New York: Metropolitan Books, 2007), 466 pages, hardcover, $28.00.
At the crossroads of Buenos Aires’s shopping district sits a posh mall called the Galerías Pacífico, a showcase for global brand names and a playground for Argentina’s rich. One day, a film crew descended to the basement. There they found an abandoned torture chamber, its walls still etched with names, dates, and messages from political prisoners disappeared under the military junta. In The Shock Doctrine, Naomi Klein goes digging deep into the basements of global capitalism, from the torture labs of Latin America to the oil fields of Iraq, unearthing the bodies and catching the culprits red-handed. In the process, she demolishes one of the great myths of our time: that free markets go hand in hand with free societies, and that globalized free enterprise brings peace and democracy. Instead, as Klein documents in this definitive history, the new world order is the product of three decades of free-market terror, torture, and shock. | more…
The United States and the world economy are now experiencing a major economic setback that began in the financial sector with the bursting of the housing bubble, but which can ultimately be traced back to the basic problems of capitalism arising from class-based accumulation (see the Review of the Month in this issue).…Things are clearly much worse, with respect to the general public understanding of these problems, here in the United States, the citadel of capitalism, than elsewhere in the world. We were therefore bemused by an article entitled “Europe’s Philosophy of Failure” by Stefan Theil, Newsweek‘s European economics editor, appearing in the January–February 2008 Foreign Policy. Theil writes of the “prejudice and disinformation” incorporated in French and German secondary school textbooks dealing with economics. Such textbooks he complains “ingrain a serious aversion to capitalism.” | more…
With the benefit of hindsight, few now doubt that the housing bubble that induced most of the recent growth of the U.S. economy was bound to burst or that a general financial crisis and a global economic slowdown were to be the unavoidable results. Warning signs were evident for years to all of those not taken in by the new financial alchemy of high-risk debt management, and not blinded, as was much of the corporate world, by huge speculative profits. This can be seen in a series of articles that appeared in this space: “The Household Debt Bubble” (May 2006), “The Explosion of Debt and Speculation” (November 2006), “Monopoly-Finance Capital” (December 2006), and “The Financialization of Capitalism” (April 2007). | more…
Until recently, the global capitalist economy has enjoyed a period of comparative tranquility and grown at a relatively rapid pace since the global economic crisis of 2001–02. During this period of global economic expansion there have been several important economic and political developments. First, the United States—the declining hegemonic power but still the leading driving force of the global capitalist economy—has been characterized by growing internal and external financial imbalances. The U.S. economy has experienced a period of debt-financed, consumption-led “expansion” with stagnant wages and employment, and has been running large and rising current account deficits (the current account deficit is a broad measure of the trade deficit). Second, China has become a major player in the global capitalist economy and has been playing an increasingly important role in sustaining global economic growth. Third, global capitalist accumulation is imposing growing pressure on the world’s natural resources and environment. There is increasingly convincing evidence that the global oil production will reach its peak and start to decline in a few years. Fourth, the U.S. imperialist adventure in the Middle East has suffered devastating setbacks and there has been growing resistance to neoliberalism and U.S. imperialism throughout the world. | more…
The July–August 2007 crisis in subprime mortgage markets precipitated the collapse of the market for asset-backed securities, forcing huge write-downs of more than $45 billion on the balance sheets of major banks. In the aftershock, interbank lending dried up. Bond insurers and money market funds were beset by a loss of confidence as the credit squeeze spread. The plunge in stock markets in January 2008 suggests that the repercussions of the collapse of the subprime mortgage market are still working their way through financial markets. With over 170,000 jobs lost and the expected spate of foreclosures, many observers believe that the credit crunch has pushed the economy towards a recession. | more…
Capitalism and market economy are not synonymous, as the dominant political discourse and conventional economists would have one believe. The specific characteristic of capitalism as a system is that it is based on private ownership of the means of production; an ownership which by definition is that of a privileged minority. This private ownership (aside from land ownership) has taken the form of exclusive rights over important equipment associated with modern production technologies, from the first industrial revolution at the close of the eighteenth century to the present day. The majority of non-owners are thus obliged to sell their labor power: capital employs labor; labor has no free use of the means of production. The bourgeois/proletarian divide defines capitalism; the market is only the management form of capital’s social economy. | more…
In March 2003, Khalid Sheikh Mohammed, alleged mastermind of the 9/11 attacks, was captured in Pakistan. Much of the information on his movements and whereabouts is believed to have come from interrogations of his two children, aged six and eight. The children are known to have been held in an adult detention facility for at least four months while they were interrogated. During this time, according to one witness, “the boys were kept in a separate area upstairs, and were denied food and water by other guards. They were also mentally tortured by having ants or other creatures put on their legs to scare them and get them to say where their father was hiding.” After that, they disappeared into the system and nothing more was heard about them. Their current whereabouts and condition are unknown. The United States has sunk to kidnapping, imprisoning, torturing, and then “disappearing” children in order to get at their parents. What were once dark and unlikely rumors have gradually proven to be true: many men, women, and yes, children have been abducted around the world and fed into the maw of the American system. | more…
Marge Piercy is the author of Pesach for the Rest of Us: Making the Passover Seder Your Own (Schocken, 2007). Her most recent novel is Sex Wars: A Novel of the Turbulent Post-Civil War Period (New York: William Morrow, 2005), and her newest book of poetry is The Crooked Inheritance (Knopf, 2006). | more…
In early 2011, the nation was stunned to watch Wisconsin’s state capitol in Madison came under sudden and unexpected occupation by union members and their allies. The protests to defend collective bargaining rights were militant and practically unheard of in this era of declining union power. This timely book brings together some of the best labor journalists and scholars in the United States, many of whom were on the ground at the time, to examine the causes and impact of events, and suggest how the labor movement might proceed. | more…
Michael Moore’s film, Sicko, dramatically illustrated how problems in access to health care in the United States have escalated to the point of a crisis for all but the richest Americans. The problems include the fact that many citizens are uninsured, health care costs are increasing faster than inflation and wages, and more of those costs are being passed on from employers to employees. Many indices of health care effectiveness show that the United States fares very poorly in comparison to other developed capitalist countries. Almost all the other developed capitalist countries have universal health care. All their citizens are insured and their per capita costs are much lower. | more…
Steven Hiatt, ed., with introduction by John Perkins, A Game as Old as Empire: The Secret World of Economic Hit Men and the Web of Global Corruption (San Francisco: BK Currents, 2007), 310 pages, paper $24.95.
Just before John Perkins, author of the bestselling Confessions of an Economic Hit Man, decided it was no longer possible to remain silent about his intimate involvement in the economic warfare waged against the Global South, he sat despondently before the ruins of Ground Zero, totally incapable of visualizing the tragedy: all he could see was a U.S. contractor delivering millions of dollars of weapons to the mujahadeen in Afghanistan. Perkins understood himself—a former economic advisor for a multinational utilities contractor, similar to Bechtel—and others like him, to be products of a “system that promotes the most subtle and effective form of imperialism the world has ever witnessed.” Mainstream commentators addressing Perkins’s book ignored the vivid recounting of his own personal involvement as an economic hit man. This is undoubtedly because Perkins used this experience to emphasize the substantial connections between U.S. intelligence agencies, multinational corporations, and political elites of the Global South, laying bare the true motives of “development.” As an “economic hit man,” Perkins fabricated nearly every economic forecast he was asked to produce—as his bosses clearly expected him to do. This led him to repeatedly attack U.S. economic dogma in Confessions | more…
We live in a complex, divided society. We are divided by wealth, income, education, housing, race, gender, ethnicity, religion and sexual orientation. These divisions are much discussed; in the last two years, there have been entire series in our major newspapers devoted to the growing income divide. The wealth-flaunting of today’s rich was even the subject of a recent Sunday New York Times Magazine article (“City Life in the New Gilded Age,” October 14, 2007). | more…
