4. Government may not redistribute private wealth or grant special privileges to any individual or group.
Continuing my gradual critique of Ron Paul's Ten Principles, the next in line is relevant to what I've been talking a lot about these past few weeks, the great impetus behind #OccupyWallStreet: income inequality.
It's significant that the godfather of the Tea Party movement (the original form of it, anyway) includes wealth redistribution in his principles of liberty.
From the blog of #OccupyWallStreet’s People’s Library:
The movement will no doubt survive, even if its flagship camp is forced to move elsewhere. But its flagship library is not as easily replaced. More than any other aspect of Bloomberg/Kelly’s Monday night raid on Zuccotti Park, the thoughtless destruction of the People’s Library symbolizes the soullessness of the authorities threatened by our wonderfully rebellious American Fall.
May the embers of this shameful moment be kept alive in our hearts and minds to kindle an even more wonderful American Spring.
4. Government may not redistribute private wealth or grant special privileges to any individual or group.
Continuing my gradual critique of Ron Paul’s Ten Principles, the next in line is relevant to what I’ve been talking a lot about these past few weeks, the great impetus behind #OccupyWallStreet: income inequality.
It’s significant that the godfather of the Tea Party movement (the original form of it, anyway) includes wealth redistribution in his principles of liberty. It points up an area where these two movements can either come together or get driven apart. There’s no question about where #ows stands on this point. Income inequality is a key symptom of the disease #0ws arose in response to, and one of its goals, I would argue, is to force a correction of what it views this to be: a moral wrong. If Paul is any indication (and I’m sure he is), the Tea Party is not so much troubled by this gap as it is by the idea that government should try to close it. Read the rest of this entry »
Here’s an interesting video from a Texas-based libertarian, John Barksdale (my spelling may be incorrect), who calls himself order9066. I’m impressed with the research he put into this subject, and I take his point very well that it was not just Republicans who were responsible for throwing out the Glass-Steagall Act of 1933, which prohibited financial holding companies insured by the FDIC from owning other companies engaged in financial speculation such as Wall Street investment firms or insurance companies, with the Gramm-Leach Bliley Act of 1999.
While this video does serve as a corrective for the idea that Democrats share little or no blame in the gutting of New Deal protections that set-up the disaster of 2008, it goes overboard in pushing Republicans into the background of the blame picture. After all, the three authors and main sponsors of the bill were all Republicans, and both houses of Congress were, in fact, controlled by the GOP. But it does highlight two main points: The fingerprints of “Third Way” Democrats in Clinton’s White House (including Clinton himself, of course) are as much in evidence on the financial deregulation of the late 1990s as the Republicans’ are; and Congressional Democrats were ineffective, at best, in preventing (and, at worst, complicit in bringing on) Glass-Steagall’s demise. Read the rest of this entry »
In The Shock Doctrine, Naomi Klein brought to light the neoliberal tactic of crisis capitalism, unleashed in circumstances (as in Chile, Argentina, Poland, Russia, South Africa) where political powers have exploited (or even created) extreme conditions–such as coups, natural disasters, or economic crises–during which the local population is disoriented and their defenses are down, to instigate corporation- and “investment”-friendly policies like lowered taxes and the cutting and privatization of government services. The justification given for such maneuvers is to bring the target economy in line with the global economy, but, of course, very few people (only a tiny few) in the world actually benefit from these capitalistic incursions. One of the most obscene instances of the Shock Doctrine in action resulted in the rape of the former Soviet Union”s assets by the oligarchs in the name of Boris Yelstin’s economic “reforms.” But that’s only one of the most obvious and well known cases.
During the Clinton years, as former communist apparatchiks were helping themselves to radically discounted oil fields and other rich resources in Russia, Catherine Austin Fitts says she witnessed a similar feeding frenzy much closer to home. A former managing director and board member at the Wall Street firm Dillon Read who served as Assistant Secretary at HUD in the first Bush administration, Fitts started a financial company of her own, The Hamilton Securities Group of Washington, D.C., to help communities make the most of federal monies and improve their standing in what she calls the Popsicle Index, which measures the confidence families in a community feel to send a six-year-old by herself to the corner store and back. Fitts witnessed firsthand the collusion between Washington and Wall Street insiders (often the same people on opposite sides of a revolving door) to employ crisis capitalism techniques in the US as part of the daily repertoire of government actions (my emphasis):
Our efforts at The Hamilton Securities Group to help HUD achieve maximum return on the sale of its defaulted mortgage assets coincided with a widespread process of “privatization” in which assets were, in fact, being transferred out of governments worldwide at significantly below market value in a manner providing extraordinary windfall profits, capital gains and financial equity to private corporations and investors. In addition, government functions were being outsourced at prices way above what should have been market price or government costs — again stripping governmental and community resources in a manner that subsidized private interests. The financial equity gained by private interests was often the result of financial, human, environmental and living equity stripped and stolen from communities — often without communities being able to understand what had happened or to clearly identify their loss. This is why I now refer to privatization as “piratization.”
One of the consequences was to steadily increase the political power of companies and investors who were increasingly dependent on lucrative back door subsidies — thus lowering overall social and economic productivity. Hence, the doubling of FHA’s mortgage recovery rates from 35% to 70-90% ran counter to global trends and ruffled feathers…. Read the rest of this entry »
A little follow up to the last post about Damon Vrabel and his critique of neoclassical economics.
After concluding the Renaissance 2.0 series of lectures, Vrabel wrote a farewell on his blog at his Council for Spiritual, Psychological and Economic Renewal, explaining why he was no longer going to keep posting on the world situation. Among his reasons:
As I said in previous articles, IF we participate in the system, I’m not opposed to it at all. How could I be? I’d be a tyrant if I wanted to force hundreds of millions of people to change their behavior. And the fact is, that “IF” was answered long ago. We Americans have chosen the material benefits of being managed by the financial system for generations. We like demand-side freedom, i.e. choosing between Coke and Pepsi, but don’t want supply-side freedom. We like the supply-side to be taken care of for us. We love the benefits that come from it being imperially run—the credit card always works, the gas station is always open, our water faucets and light switches do what they’re supposed to do, the markets keep going up (oops…maybe not). All of our economic needs are outsourced to others, so we have the luxury of spending our time pursuing wants. And if these types of benefits are good for us, they’re good for the rest of the world. We have no moral authority to stand opposed just because we’re now going to lose our privileged position—a rather childlike perspective.
Do I detect some sarcasm? Many of the items Vrabel ticked off as buying our disinterest in changing the imperial system are, of course, threatening to stop working in the near-long term, if they haven’t already stopped working for many of us, which is why, I suspect, #OWS has resonated so deeply so fast.
In any case, perhaps responding to the Arab spring and certainly responding to questions from viewers of Renaissance 2.0, Vrabel returned to YouTube with a new series titled “Debunking Money.” Again, I highly recommend it to anyone wanting to understand how the world really works and why we, the people (or the peasantry, as the case may be), are experiencing a diminution of our liberties. In this series, Vrabel makes explicit his rejection of various ideas from the left and right, including Austrian school economics and Milton Friedman’s neoliberalism.
The lesson below is particularly interesting as it debunks the notion, popular among Libertarians and popularized by Ron Paul, that “ending the Fed” is a viable solution to the problem. Vrabel says the American people would be “cutting their own throat.” If you have difficulty following this, I strongly suggest starting from the first video and hanging on his every word, if possible. Not to say this is the ultimate truth, of course, but it is certainly much closer to the truth than anything you will be hearing from Republicans or Democrats:
I applaud him for that. He is certainly the rare politician who seems to actually understand the legitimacy of the #occupyWallStreet protest.
Of course, the last time I heard applause for him like this at one of these debates, he was arguing against bailing out people with catastrophic illnesses who have no health insurance.
Bernard Harcourt has an essay in the New York Times‘ The Stone blog in which he proposes a syntagm, as the continental philosophers would call it, standing for the unique mode of resistance energizing #occupationWallStreet and its sister occupations around the world:
Occupy Wall Street is best understood, I would suggest, as a new form of what could be called “political disobedience,” as opposed to civil disobedience, that fundamentally rejects the political and ideological landscape that we inherited from the Cold War.
Civil disobedience accepted the legitimacy of political institutions, but resisted the moral authority of resulting laws. Political disobedience, by contrast, resists the very way in which we are governed: it resists the structure of partisan politics, the demand for policy reforms, the call for party identification, and the very ideologies that dominated the post-War period.
Occupy Wall Street, which identifies itself as a “leaderless resistance movement with people of many … political persuasions,” is politically disobedient precisely in refusing to articulate policy demands or to embrace old ideologies. Those who incessantly want to impose demands on the movement may show good will and generosity, but fail to understand that the resistance movement is precisely about disobeying that kind of political maneuver. Similarly, those who want to push an ideology onto these new forms of political disobedience, like Slavoj Zizek or Raymond Lotta, are missing the point of the resistance. Read the rest of this entry »