Political Economy
A New Economy? Today, we hear a lot of talk about the New Economy, much of it unsubstantiated and hyperbolically stated. In the United States, for example, consumers are supposedly concerned, as never before, with high-quality goods and services tailored specifically to their individual needs. Rapidly changing technology continually creates new, high-quality products, so consumer needs are perpetually changing as well. This rapid change places new demands on businesses. They must be maximally flexible, capable of changing product lines quickly, and able at all times to meet discerning and highly individualized consumer needs. Everything must be geared to customer satisfaction; a firm that does not quickly and consistently please its customers will lose business sooner than at any time in the past. The tremendous range of choices available means that customers will not be loyal to any company that cannot offer speedy gratification. Recently an Internet book company opened that promised same-day delivery! | more…
an Interview with Doug Henwood
Doug Henwood, author of Wall Strr£t:How It Works andfur lWIom (Verso, 1997) and publisher and primary author of the newsletter Left Business Observer; is a fre- quent contributor to Munthly Review. Doug was interviewed earlier this year for the San Francisco Ba:y Guardian by another good friend of ours, Christian Parenti-author of 1.JxiuJnam Ameriaz (Verso, 1999), reviewed in last month’s MR At the end of February we asked a few additional questions of Doug. The composite interview follows | more…
Michael Meeropol, Surrender: How the Clinton Administration Completed the Reagan Revolution (Ann Arbor: University of Michigan Press, 1998), 377 pages, cloth $34.50, paper $19.95.
Recent presidential elections in the United States have obfuscated, more than clarified, the social divisions of American society. While the Democrats project a well-worn image of protecting working Americans the Republicans declare the need to defend traditional American values. In reality, the consensus between the two parties on the superiority of American government and the beneficence of capitalism rules any challenge to the status quo politically out of bounds (even the candidacy of longtime policy activist Ralph Nader was seen as beyond the pale). The contest between Albert Gore and George W. Bush—a contest between patrician familial dynasties that could only occur in the United States—was no exception | more…
Two decades after the Carter and Reagan administrations launched their attacks on the U.S. regulatory system the world is littered with the wreckage of neoliberal deregulation. Seldom have these failures loomed so prominently, however, as in the rolling blackouts that swept much of California in January of this year. These rolling blackouts were implemented by California power authorities in a desperate attempt to deal with a burgeoning crisis in the availability of electrical power resulting from the deregulation of California’s electrical power companies beginning in 1996. The deregulation legislation, passed unanimously by the California state legislature, promised a 20 percent drop in electricity rates by 2002. Rates for final consumers were to be frozen at around 50 percent above the national average for up to four years (1998-2002), during which time the ratepayers were required to contribute to paying off the “stranded assets” of the major private utility companies, consisting of billions of dollars in bad investments in nuclear power facilities. So far, California ratepayers have paid out seventeen billion dollars to the private electrical utilities under these provisions. Deregulation also required the utilities to sell off their power generation facilities (with the exception of some hydropower and nuclear facilities). | more…
Creating a Jailhouse Nation
Lockdown America: Police and Prisons in The Age of Crisis by Christian Parenti.
By the time I was captured in 1981, the prologue to a life sentence, I had twenty years of movement experience—both above and underground—under my belt. So I thought I had a good understanding of the race and class basis of prisons. But once actually inside that reality, I was stunned by just how thoroughly racist the criminal justice system is and also by the incessant petty hassles of humiliation and degradation. As political prisoner Mumia Abu-Jamal aptly noted in Live From Death Row, there is a “profound horror…in the day-to-day banal occurrences…[the] second-by-second assault on the soul.” The 1980s became the intense midpoint of an unprecedented explosion of imprisonment. Since 1972, the number of inmates in this country, on any given day, has multiplied six-fold to the two million human beings behind bars today. Another four million are being supervised on parole or probation. The U.S. is the world leader in both death sentences and incarcerations. With just 5 percent of the world’s population, we hold 25 percent of the prisoners. | more…
Michael Zweig, The Working Class Majority: America’s Best Kept Secret (Cornell University Press, 2000), 192 pages, $25 cloth, $14.95 paper.
The claim that the U.S. is a “middle-class country”—which goes back at least to the eighteenth century—has set apart (white) yeoman farmers from the rural or urban poor, and notably from nonwhites. Thomas Jefferson envisioned his ideal nation as the land of, and for, hard-working property holders, free of the turmoil and corruption inevitable in Europe’s aristocratic fixed-class system | more…
Hugh Stretton, Economics: A New Introduction (Pluto Press, 1999), 864 pages, $90 hardcover, 35 paper.
Capitalism was first firmly established in Britain in the eighteenth century and it was then and there that economics was born, in Adam Smith’s Wealth of Nations (1776). Economists have served capitalism ever since, but only in the past quarter-century has capitalism needed—and gotten—so much from them | more…
Hart-Landsberg and Burkett’s China and Socialism argues that market reforms in China are leading inexorably toward a capitalist and foreign-dominated development path, with enormous social and political costs, both domestically and internationally. The rapid economic growth that accompanied these market reforms have not been due to efficiency gains, but rather to deliberate erosion of the infrastructure that made possible a remarkable degree of equality. The transition to the market has been based on rising unemployment, intensified exploitation, declining health and education services, exploding government debt, and unstable prices. | more…
The attention given to the Florida elections in the US presidential race has highlighted the horrendous fact that in Florida and throughout the South thirty-five years after the passage of the Voting Rights Act there are numerous ways in which African Americans are prevented from voting. Thus Florida is one of fourteen states that bar ex-criminal offenders from voting even after they have completed their sentences. In Florida alone more than 400,000 ex-criminal offenders who at one time received felony convictions but who have now completed their sentences and are no longer in prison, on probation, or on parole have been barred from voting in this way. This includes almost one-third of black men in that state and more than 200,000 potential African-American voters, 90 percent or more of whom could have been expected to vote Democrat if they had voted. This situation in Florida and other states is documented in a 1998 report entitled Losing the Vote, issued by Human Rights Watch and the Sentencing Project, available on-line at http://www.hrw.org/reports98/vote/. Given the fact that under the present criminal injustice system African Americans are far more likely to be arrested and given felony convictions than their white counterparts this becomes an effective means of political control. | more…
The unlikely postelection contest between Al Gore and George W. Bush, which ultimately led to the anointing of Bush as president by the Republican majority on the US Supreme Court (despite the fact that Bush received fewer popular votes than Gore both in the United States as a whole and most likely in Florida as well—the state that gave Bush his electoral college win), has tended to erase all other developments associated with the election. But all of this should not cause us to forget that the Ralph Nader Green Party campaign for the presidency was arguably the most extraordinary phenomenon in US left politics in many years | more…
Eleanor Marx and Edward Aveling, The Working Class Movement in America, edited by Paul Le Blanc (Amherst, NY: Humanity Books, 2000), $55, 231 pp.; Paul Le Blanc, A Short History of the US Working Class (Amherst, NY: Humanity Books, 1999), $30 (cloth), $20 (paper), 205 pp.
1886 was a momentous year in United States labor history. The great eight-hours movement had swept across the nation, and the Knights of Labor were in full flower. Working class politicial parties were forming, and the American Federation of Labor had been founded. In that year, Karl Marx’s daughter, Eleanor, and her partner, Edward Aveling, toured the United States, giving lectures and meeting comrades as guests of the Socialist Labor Party. They then returned to England and wrote about their trip. The first book under review is a timely reprint of the original. In addition to the reprint, it includes a useful introduction by Paul Le Blanc (including a fine annotated labor history bibliography) and interesting essays by historian Lisa Frank on Eleanor Marx and by writer and labor activist Kim Moody on aspects of working class life the two visitors failed to see | more…
A striking example of the one-sided nature of the US media, at least where issues of capital and imperial power are concerned, is the way recent events in the Middle East are being reported. One would never know from the press, radio, and television that Palestinians are fighting for freedom from military occupation and the years-long deterioration of social and economic conditions. Theirs is in essence an anticolonial struggle. In a recent article in the Egyptian Al-Ahram Weekly, Edward Said pointed out: not a single map has been published or shown on television to remind American viewers and readers—notoriously ignorant of both geography and history—that Israeli encampments, settlements, roads and barricades crisscross Palestinian land in Gaza and the West Bank. | more…