Political Economy
Except in times of war, capitalist economies almost never reach full employment. The mere absence of jobs for those desiring paid employment, however, is not necessarily a problem for the ruling economic interests. Unemployment and the underutilization of labor more generally—the existence of what Marx called the industrial reserve army of labor—is a necessary part of a capitalist economy, since it keeps wages low as workers are forced to compete with each other for jobs. This becomes a serious problem for the system or for the political structure when the shortfall in employment coincides with a deeper structural crisis; when aggregate demand and thus investment opportunities are hindered by low employment and low wages; and when a shortage of jobs creates a political problem, sometimes even igniting popular opposition at the grassroots of society. All three of these contradictions are apparent in 2004, setting the stage for a national debate on the question of jobs, which more than three years since the beginning of the 2001 recession is now suddenly a front page story | more…
These are difficult times for workers. In the wealthy countries of capitalism’s center, labor is struggling to maintain existing wages and benefits against a combined assault by corporations and governments, while conditions of workers in the periphery are even more difficult. The widespread acceptance and adoption of capital’s agenda—”free trade,” “free markets,” greater “flexibility” regarding labor, and reduced social welfare assistance—has led to one group of real winners. Transnational corporations (and their owners and top managers) now have more freedom to produce where labor and other costs are cheap, have their patents protected, and move capital in and out of countries at will. Many workers, unfortunately, are finding that their situation has become more tenuous. | more…
Doug Henwood, After the New Economy (New York: The New Press, 2003), 269 pages, hardcover $24.95.
In the late nineties, the San Francisco Bay Area was caught up in the mania of the high-tech, information-based “New Economy.” Venture capitalists threw money at e-commerce start-ups based on dicey premises, while loss-making companies raked in millions at their initial public offerings. In low income areas like the Mission District, dot-coms moved in, forcing out poor people whose only recourse was to organize themselves in anti-displacement coalitions and hope for the market to crash. In the fray, even a new type of gold digger emerged: women in search of nerdly adolescent millionaires with fat stock options. It was a stupefying time | more…
A recurring issue for the left historically has been how to address the capitalist media. In recent years the problem has grown ever more severe, and no small amount of attention has been given to examining the problems of the commercial media and how closely they reinforce and accentuate problems within the broader social order. The logic of this criticism has become clear: progressives need to work on challenging the corporate domination of media as part of the broader struggle for social justice. If changing media is left until “after the revolution,” there will be no revolution, not to mention fewer chances for social reform. But politicizing control over media has proven to be extraordinarily difficult for activists. That is why the massive and largely unanticipated 2003 campaign in the United States to stop further media concentration, which almost overnight reached a scale not seen in media reform struggles since the 1930s, is so important and instructive. This article chronicles that revolt | more…
I have a confession to make: I do not work. I am on SSI.1 I have very little work value (if any), and I am a drain on our country’s welfare system. I have another confession to make: I do not think this is wrong, and to be honest, I am very happy not working. Instead I spend the majority of my time doing the activity I find the most rewarding and valuable, painting | more…
David Bacon, The Children of NAFTA: Labor Wars on the U.S./Mexico Border (Berkeley: University of California Press, 2004), 348 pages, cloth $27.50.
I once heard a discussion about the first sentences of books and those sentences that were among the most famous and most powerful. The opening of Gabriel Garcia Marquez’s One Hundred Years of Solitude was among the most popular. David Bacon’s first sentence in chapter one of his book must now rank among the most gripping: “NAFTA repeatedly plunged a knife into José Castillo’s heart.” | more…
The number of people living a precarious existence has been increasing in many countries of the world, with hunger all too widespread. There are approximately 6 billion people in the world, with about half living in cities and half in rural areas. Between the poor living in cities and those in rural areas, a vast number of the world’s people live under very harsh conditions. It is estimated that that about half of the world’s population lives on less than two dollars per day, with most of those either chronically malnourished or continually concerned with where their next meal will come from. Many have no access to clean water (1 billion), electricity (2 billion), or sanitation (2.5 billion) | more…
Capitalism is hundreds of years old and today dominates nearly every part of the globe. Its champions claim that it is the greatest engine of production growth the world has ever seen. They also argue that it is unique in its ability to raise the standard of living of every person on earth. Because of capitalism, we are all “slouching toward utopia,”—the phrase coined by University of California at Berkeley economist J. Bradford DeLong—slowly but surely heading toward a world in which everyone will have achieved a U.S.-style middle-class life | more…
Tara Herivel and Paul Wright, editors Prison Nation: The Warehousing of America’s Poor (New York: Routledge, 2003), 256 pages, cloth $80.00, paper $19.95.
I sit in the day room/lobby waiting to be released for lunch. I read a novel in which one character, a Pole, comments to another that the Germans consider Poles to be untermenschen, subhuman. I look at the women around me: Latinas arguing among themselves in Spanish; a black woman making signals to someone I don’t see; two white women—one of whom is stringing beads—are murmuring together. Two of these women are here because they are undocumented workers; three are incarcerated for economic offenses; the other is falsely convicted; all of us are caught inside the nightmare of an oppressive state and an expanding empire. Instead of storm trooper boots and brown shirts, those who command wear Tony Lamas cowboy boots, expensive suits, and ties—men who see in the U.S. prison establishment ways to both intensify control of the population and squeeze more profits out of late-stage capitalism | more…
Michael Dawson, The Consumer Trap: Big Business Marketing in American Life (Champaign: University of Illinois Press, 2003), 203 pages, cloth $26.95.
In 1877, speaking at the Powder River Conference, Chief Sitting Bull of the Lakota nation said of the European invaders who were destroying his people and their way of life, “[T]he love of possession is a disease with them.” Disease is an apt term, because it does not necessarily imply that the love of possession was inherent in the nature of the invaders, but rather that the affliction may have been acquired. Thus, any scholar wishing to locate the origin of the affliction should, like an epidemiologist, search out its sources and possible transmission vectors | more…
This year Cuba will be celebrating the forty-fifth anniversary of its victorious revolution: a great historic achievement. And when we bear in mind that the Cuban revolution—the long sustained action of a nation of just eleven million people—survived for forty-five years against all odds, successfully confronting the declared enmity, the U.S.-dictated international political encirclement and economic blockade, as well as the ever renewed attempts to subvert and overthrow the post-revolutionary order by the world’s most preponderant economic and military power, even this simple fact puts forcefully into relief the magnitude and the lasting significance of the ongoing Cuban intervention in the historical process of our time. We are all contemporaries to an achievement whose reverberations reach well beyond the confines of the tendentiously propagandized “American Hemisphere,” offering its hopeful message to the rest of the world | more…
Since the early 1980s, the leading capitalist states in North America and Western Europe have pursued neoliberal policies and institutional changes. The peripheral and semiperipheral states in Latin America, Africa, Asia, and Eastern Europe, under the pressure of the leading capitalist states (primarily the United States) and international monetary institutions (IMF and the World Bank), have adopted “structural adjustments,” “shock therapies,” or “economic reforms,” to restructure their economies in accordance with the requirements of neoliberal economics | more…