Political Economy
The biennial State of Working America (hereinafter SWA), written by economists at the Economic Policy Institute in Washington, D.C., is the best compendium and analysis of U.S. labor market statistics there is.* In one convenient book, there are data on the distribution of income and wealth, all aspects of wages and benefits, employment and unemployment, poverty, regional labor markets, and international labor comparisons. In addition to the data, there are explanations for all of the major labor market trends. Does the stagnating minimum wage contribute to poverty? Is rising wage inequality the result of the growing educational requirements of jobs? Are trade agreements such as the North American Free Trade Agreement (NAFTA) necessarily good for workers as mainstream economists keep telling us? Why do the wages and incomes of racial and ethnic minorities continue to lag behind those of whites? Does the labor market model of the United States, with its very limited regulation, deliver better results for workers than does the more institutionally-constrained model of most European nations? Mishel, Bernstein, and Allegretto analyze their data using sophisticated statistical techniques to give us answers to these and many other questions. A review of this book, along with some critical commentary, will give readers a good idea of how workers in the United States have been faring and what they can reasonably expect in the future | more…
According to The Annual Economic Fiscal Report (July 2004) prepared by the Ministry of Economic and Fiscal Policy, the Japanese economy is recovering from the prolonged stagnation that began with the bursting of the financial bubble in 1990-91. This recovery started at the beginning of 2002. It is characterized by the restored increase of both profitability and spending on plant and equipment in the private business sector and an increase in demand from abroad, while public spending (like public works) has been rather held down. In the fiscal year 2003 (up through March 2004) for instance, the Japanese real Gross Domestic Product (GDP) was said to have grown by 3.2 percent. Contributions to this growth rate came from the growth of domestic demand in the private sector (2.9 percent) and the growth of foreign demand (0.8 percent), offset by a mild decline in government spending (minus 0.6 percent). The annualized rate of GDP growth in the quarter January-March 2004 was said to have reached 5.6 percent and especially encouraged the official expectation of a strong economic recovery | more…
In addition to old-age benefits, it is often forgotten that Social Security provides survivor and disability insurance protections as well. The privatization debate has overlooked the fate of Social Security Disability Insurance (SSDI) as a part of the program’s family of benefits | more…
Liza Featherstone, Selling Women Short: The Landmark Battle for Workers’ Rights at Wal-Mart (New York: Basic Books, 2004), 282 pages, cloth $25.00.
In 1999, Wal-Mart became the largest private employer in the world. If it were a country, its annual sales would make it approximately the twentieth largest economy. The company is notoriously anti-union, but it has become increasingly a focus of attention for the labor movement around the world. Recent proposals by U.S. unions regarding major changes in direction have included a proposal for a $25 million per year Wal-Mart campaign. These are only some of the reasons why Liza Featherstone’s Selling Women Short: The Landmark Battle for Workers’ Rights at Wal-Mart is a timely and necessary book | more…
In the face of continuing right-wing attacks on Social Security since the Reagan era in the 1980s, MR has responded repeatedly by pointing to the phony nature of the Social Security crisis. Two articles of note are Jacob Morris, “Social Security: The Phony Crisis” in the February 1983 issue of MR and “Social Security, the Stock Market, and the Elections” in the October 2000 issue. Those wanting a thorough historical understanding of this struggle are encouraged to look back at these articles. Given the nature of the right-wing onslaught, which all along has pretended that the Social Security trust fund was threatened with “bankruptcy,” MR’s chief thrust has been to dispel such misconceptions. Our primary purpose has been to counter what has been one of the major propaganda campaigns of our time. If Social Security is in peril of “collapse” it is only because of current plans to privatize it. However, there is a great danger in this controversy of getting drawn into endless debates on the financing of the Social Security system in the United States, while losing sight of the more fundamental issues | more…
The twentieth century’s dominant myth was that of a “rational capitalism.” The two economists who did the most to promote this idea were John Maynard Keynes and Joseph Schumpeter. Both were responding to the great historical crisis of capitalism manifested in the First World War, the Great Depression, and the Second World War. In the wake of the greatest set of horrors the world had ever seen, accompanied also by the rise of an alternative, contending system in the Soviet Union, it was necessary for capitalism following the Second World War to reestablish itself ideologically as well as materially. In terms of the ideological requirement, the two economists who accomplished this most effectively were Keynes and Schumpeter—not simply because they epitomized the best in bourgeois economic ideology, but also because they were the leading representatives of bourgeois economic science. What they set out in their analyses were the requirements of a rational capitalism and at least the hope that these requirements would be achieved | more…
Ed Cray, Ramblin’ Man: The Life and Times of Woody Guthrie (New York: W. W. Norton, 2004), 488 pages, cloth $29.95.
Ed Cray’s new biography of Woody Guthrie marks another step in a growing interest in the left-wing Okie troubadour. In 1997, historian Charles J. Shindo published Dust Bowl Migrants in the American Imagination, which includes analysis of Woody Guthrie’s work along with that of John Ford and John Steinbeck. Joe Klein’s enthusiastic biography of Guthrie, first published in 1980, was reissued in 1999, the year after Ed Cray began the new biography. Elizabeth Partridge’s book for young readers, This Land Was Made for You and Me: The Life and Songs of Woody Guthrie was published in 2002 | more…
In recent years, China has become a major actor in the global economy, making a remarkable switch from a planned and egalitarian socialism to a simultaneously wide-open and tightly controlled market economy. Against the establishment wisdom, Minqi Li argues in this provocative and startling book that far from strengthening capitalism, China’s full integration into the world capitalist system will, in fact and in the not too distant future, bring about its demise. | more…
The battle over the future of Social Security, the site of continual skirmishes since the Reagan era, is now being waged in earnest (for a history of this struggle see The Editors, “Social Security, the Stock Market, and the Elections,” Monthly Review, October 2000; see also, “Social Seceurity: The Phony Crisis” by Jacob Morris). President Bush began his second term by declaring that partial privatization of Social Security through the creation of personal investment accounts was at the top of the domestic agenda of his administration. This would require an estimated $2 trillion in additional borrowing over the next ten years, and even more after that (New York Times, January 3, 2005), to be coupled with drastic cuts in future Social Security benefits. The White House is counting on the Republican majority in both houses of Congress, the backing of Wall Street, and years of unrelenting ideological warfare against Social Security as the bases on which to effect this change | more…
The Muslims, as the Nation of Islam is called, stress the futility of the integrationist program. They argue that there is no precedent for the absorption of Negroes into the greater white American mainstream in fact or in history, that integrationists are asking for something the American socioeconomic system is inherently unable to give them—mass class mobility, so that at best Negroes can expect from the integrationist program a hopeless entry into the lowest levels of a working class already disenfranchised by automation | more…
David Gilbert, No Surrender: Writings from an Anti-Imperialist Political Prisoner (Montreal: Abraham Guillen Press, 2004), 283 pages, paper $15.00.
David Gilbert is serving a seventy-five year to life prison sentence for his participation in the 1981 holdup of a Brinks armored truck in which three persons were killed, two police officers and a security guard. The attempted robbery was an effort to raise money for the Black Liberation Army (BLA), an underground offshoot of the Black Panther Party. By the time of the Brinks events, David had been a committed revolutionary for nearly twenty years. In 1965 he founded the Committee Against the War in Vietnam while a student at Columbia University; he was a founding member of the Columbia chapter of Students for a Democratic Society (SDS) in 1967; he was a leader of the famous student strike at Columbia in 1968; and he was an early member of the Weathermen faction of SDS in 1969, whose members soon went underground to wage war against U.S. imperialism and racism, renaming themselves the Weather Underground. They hoped to support all those around the world actually fighting against U.S. imperialism and even to ignite a popular uprising in the United States through a series of spectacular bombings of government facilities (including the Pentagon) and corporate offices and banks, as well as by written propaganda and analysis | more…
An essential aspect of any modern democratic society is a communications system that enables rather than disables public debate. Yet the mass media in the advanced capitalist societies are highly concentrated, controlled by a few owners (on the extent of this control in the United States and its implications see Robert W. McChesney, The Problem of the Media [Monthly Review Press, 2004]). Further, the United States has witnessed the emergence of what is undoubtedly the most sophisticated propaganda system ever developed, making it possible for control of the media to translate into the power to sway large parts of the society. An understanding of this problem is crucial if one is to grasp the changes occurring in U.S. society today: from war to privatization to the suppression of human rights | more…