Neoliberalism: An American love story by Robert Chernomas and Ian Hudson

Trump’s declaration of an economy ‘for the people’ lead many to incautiously declare the end of neoliberalism. Such declarations were at variance with subsequent news of his plans for market deregulation, corporate tax cuts and his instating of the richest cabinet in U.S. history. Why do tired neoliberal economic policies, proven to be an abject failure, dominate the economic landscape?  In their new book, The Profit Doctrine, Robert Chernomas and Ian Hudson set to found out, critically examining the key proponents of neoliberalism; their flawed ideas and their flawed characters. In this exclusive essay, the authors look at America’s romance with Milton Friedman, Alan Greenspan and Robert Lucas and their theories and look to the future. 

In Donald Trump’s inauguration speech he boasted that his administration would take power from Washington and give it back to “you, the people.” As usual, President Trump’s headline is appealing but his analysis is appalling. While he is correct that economic policy in the US has turned against most of “the people,” it is not Washington that is the problem, at least not in the manner that Trump or his cabinet of business executives would have you believe.

In fact, contrary to what friedman-and-bushPresident Trump suggests, economic policy since 1980 has worked against most people in the US because of its dedication to corporate profits and the wealth of the business class. An economy that actually worked for the people would create stable growth, price stability, full employment, and the efficient allocation of resources. Some might even add to this list an environmentally sustainable economy and a reasonably equitable distribution of wealth and income. However, with the exception of price stability, the US after 1980 has delivered none of these things.

According to inequality experts, Thomas Piketty and Emmanuel Saez, between 1973 and 2000 the average income of the bottom 90% of US taxpayers fell by 7%. Incomes of the top 1% rose by 148%, the top .1 percent by 343%, and extremely well off in the top .01% rose by an amazing 599%. Economic Policy Institute economist Lawrence Mishel calculated that in 1965, the average pay of the CEOs at the top 350 US firms (ranked by sales) stood at about 20 times the average compensation of their workers. By 2011, CEO income was over 200 times that of their average worker.

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“You’ve got to be taught to hate and fear” The Islamophobia machine by John L. Esposito

The Islamophobia first espoused by conservative bloggers, right-wing talk show hosts, rampant trump-exec-orderracists on Twitter and evangelical religious leaders has found a home in the White House. The decision of thousands of people to stand up to racism and protest this week is encouraging, but as intolerance becomes government policy uncovering the scare tactics, revealing the motives and exposing the ideologies that drive this Islamophobia machine becomes increasingly important. 

This essay, written by John L. Esposito, is taken from Nathan Lean’s ‘The Islamophobia Industry: How the Right Manufactures Fear of Muslims’, which seeks to challenge the narrative of fear that has for too long dominated discussions about Muslims and Islam, Esposito offers a historical perspective on this ever-rising tide. The second edition, scheduled for publication in September 2017, will include new material on the Trump victory, exploring the new government that is currently coming to shape in the US, emphasising that this book is now more relevant than other.

Islamophobia did not suddenly come into being after the events of 9/11. Like anti-Semitism and xenophobia, it has long and deep historical roots. Its contemporary resurgence has been triggered by the significant influx of Muslims to the West in the late twentieth century, the Iranian revolution, hijackings, hostage taking, and other acts of terrorism in the 1980s and 1990s, attacks against the World Trade Center and the Pentagon on September 11, 2001, and subsequent terrorist attacks in Europe.

WHAT ARE THE ROOTS OF THIS MODERN EPIDEMIC?

Most Americans’ first encounter with an unknown Islam occurred with the Iranian Revolution of 1978 and the taking of hostages in the American embassy, which resulted in an explosion of interest and coverage of the religion of Islam as well as of the Middle East and the Muslim world that has increased exponentially over the years. Today, Islam and the Middle East often dominate the negative headlines. Despite the fact that Islam is the second largest religion in the world and the third largest religion in the United States—as well as the fact that American Muslims are an integral part of the American mosaic in the twenty-first century—the acts of terrorists over the last three decades have fed the growth of Islamophobia in this country.

THE POST 9/11 CLIMATE:

The catastrophic events of 9/11 and continued attacks in Muslim countries, as well as in Germany, France and London, have obscured many positive developments and have exacerbated the growth of Islamophobia almost exponentially. Islam and Muslims have become guilty until proven innocent, a reversal of the classic American legal maxim. Islam is often viewed as the cause rather than the context for radicalism, extremism, and terrorism. Islam as the culprit is a simple answer, easier than considering the core political issues and grievances that resonate in much of the Muslim world (that is, the failures of many Muslim governments and societies, American foreign policy of intervention and dominance, Western support for authoritarian regimes, the invasion and occupation of Iraq, or support for Israel’s wars in Gaza and Lebanon). It is not difficult to find material that emphasizes selective analyses of Islam and events in the Muslim world, material which is crisis-oriented and headline-driven, fuelling stereotypes, fears, and discrimination. Islam’s portrayal as a triple threat (political, civilizational, and demographic) has been magnified by a number of journalists and scholars who trivialize the complexity of political, social, and religious dynamics in the Muslim world.

The result has been to downplay the negative consequences of Western support for authoritarian regimes, and the blowback from American and European foreign policies in the Middle East, from the Palestinian–Israeli conflict to the invasion of Iraq. Anti-Americanism or anti-westernization (which has increased significantly among the mainstream in the Muslim world and globally as a result of these policies) is often equated simply with Muslim hatred of our western way of life.islamophobia

Today, Islamophobia distorts the prism through which Muslims are viewed domestically. Anti-Muslim rhetoric and hate crimes proliferate. Legitimate concerns in the United States and Europe for domestic security have been offset by the abuse of anti-terrorism legislation, indiscriminate arrests, and imprisonments that compromise Muslims’ civil liberties. Mainstream Islamic institutions (civil rights groups, political action committees, charities) are indiscriminately accused of raising money for extremism by individuals and sometimes governments without the hard evidence that would lead to successful prosecution.

Significant minorities of non-Muslim Americans show a great tolerance for policies that would profile Muslims, require special identity cards, and question the loyalty of all Muslim citizens. A 2006 USA Today-Gallup Poll found that substantial minorities of Americans admit to having negative feelings or prejudices against people of the Muslim faith, and favour using heightened security measures with Muslims as a way to help prevent terrorism. Fewer than half the respondents believed that US Muslims are loyal to the United States. Nearly one-quarter of Americans—22 percent—said they would not like to have a Muslim as a neighbour; 31 percent said they would feel nervous if they noticed a Muslim man on their flight, and 18 percent said they would feel nervous if they noticed a Muslim woman on their flight. About 4 in 10 Americans favour more rigorous security measures for Muslims than those used for other US citizens: requiring Muslims who are US citizens to carry a special ID and undergo special, more intensive, security checks before boarding airplanes in the United States. When US respondents were asked, in the Gallup World Poll, what they admire about the Muslim world, the most common response was “nothing” (33 percent); the second most common was “I don’t know” (22 percent). Despite major polling by Gallup and PEW that show that American Muslims are well integrated economically and politically, a January 2010 Gallup Centre for Muslim Studies report found that more than 4 in 10 Americans (43 percent) admit to feeling at least “a little” prejudice toward Muslims—more than twice the number who say the same about Christians (18 percent), Jews (15 percent) and Buddhists (14 percent). Nine percent of Americans admitted feeling “a great deal” of prejudice towards Muslims, while 20 percent admitted feeling “some” prejudice. Surprisingly, Gallup data revealed a link between anti-Semitism and Islamophobia, that contempt for Jews makes a person “about 32 times as likely to report the same level of prejudice toward Muslims.”

The extent to which the religion of Islam and the mainstream Muslim majority have been conflated with the beliefs and actions of an extremist minority can be seen not only in major polls but also in opposition to mosque construction, in locations from Manhattan and Staten Island to Tennessee and California, which has become not just a local but a national political issue. In the 2008 US presidential elections and the 2010 Congressional elections, anti-mosque and anti-Sharia hysteria have shown that Islamophobia has gone mainstream. islamophobic-tweet

Across the US, a major debate erupted over the building of an Islamic community centre a few blocks from the site of the World Trade Centre. A June 22, 2010 New York Post editorial said, “There’s no denying the elephant in the room. Neither is there any rejoicing over the mosques … because where there are mosques, there are Muslims, and where there are Muslims, there are problems… .” The author warns of New York becoming “New Yorkistan,” just as London has become “Londonstan,” “degenerated” by a Muslim community “into a launching pad for terrorists.”

Islamophobia, like anti-Semitism, will not be eradicated easily or soon. Islamophobia is not a problem for Muslims alone; it is our problem. Governments, policymakers, the media, educational institutions, and religious and corporate leaders have a critical role to play in transforming our societies and influencing our citizens and policies to contain the voices of hate and the exclusivist theologies (of militant religious and secular fundamentalists alike) if we are to promote global understanding and peace. As we know from the history of anti-Semitism and of racism in America, bigots and racists aren’t born. As the lyrics from the musical South Pacific remind us: “You’ve got to be taught to hate and fear, you’ve got to be taught from year to year. It’s got to be drummed in your dear little ear, you’ve got to be carefully taught.”

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The Islamophobia Industry: How the Right Manufactures Fear of Muslims by Nathan Lean is available from Pluto Press here.

‘Even the President of the United States has to stand naked’: Trump Strips America’s Corrupt Democracy

‘How Corrupt is Britain?’ edited by David Whyte is a collection of powerful and punchy essays that shine a light on the corruption embedded in UK politics, policing and finance. In this article,  David Whyte extends his study of corruption to the U.S., turning his eye to President – Elect Trump’s recent appointments and the continued love affair between the U.S. government and private interests.

Donald Trump’s pitch to the people on the eve of the election in November was that only he could overturn the “years of sordid corruption” in the Washington establishment.   But his earliest appointments are beginning to line up like a familiar identification parade of establishment crooks.

His nominee as Secretary of State is Rex Tillerson the chief executive of Exxon Mobil, a company currently embroiled in a major Securities and Exchange Commission (SEC) investigation for publishing false reports about its assets.  The ‘white nationalist’ Steve Bannon, appointed as White House chief strategist has been exposed for channeling millionaire donor funds through a ‘charity’ to fund his work for the extreme right-wing Breitbart News. nude-trump-1  And Trump’s newly crowned head of manufacturing, is Andrew Leveris, the CEO of Dow Chemicals who was also investigated by the SEC for fraud, although the case has apparently now been concluded.  Perhaps the icing on the cake is the appointment of the climate change-denying corporate lawyer Scott Pruitt to head the Environmental Protection Agency.

But the alleged frauds that tie those appointments together is really not the headline story.  The headline story is that, perhaps unsurprisingly, they all have a long track record of rabidly opposing any regulation that gets in the way of business.

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Trump’s Electoral Victory Signals Dangerous Turn in Capitalism by Peter Hudis

The freedom movements in the U.S., and indeed around the world, have been dealt a serious blow with the election of Donald Trump as President of the United States. This is one moment when “staring the negative in the face” without succumbing to either despair or superficial explanations of the reason for his election becomes especially important.trump-1

It is worth keeping in mind that Trump’s victory,
serious as it is, hardly constitutes a
mandate, given that Clinton obtained almost two million more popular votes than Trump. And this was despite widespread voter suppression in many states, where tens of thousands—especially African Americans and poor whites—were denied their right to vote (we can hardly consider it a “democracy” when some need to travel 50 miles to find a voting booth—which only seems to happen in areas that don’t vote Republican). Nevertheless, Trump will continue to proceed as though he has a mandate, and that is very serious business. One reason he can get away with this is that the Republican establishment that earlier denounced him over fear that he would wreck the party are now embracing him for delivering every branch of government into their hands.

Nothing would be more shortsighted than to think that Trump will prove to be the Syriza of the Right—that is, that he will disappoint his followers by accommodating to the neoliberal status quo and carrying out business as usual. He means what he says, and his cabinet appointees—which place outright neo-Nazis and white supremacists in the most powerful institutions in the land—provide ample proof of that. Given the magnitude of the events, it is worthwhile to underline the following…

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The Trump Emergency by Bill V. Mullen

 

W.E.B. DuBois was quoted as saying ‘either the United States will destroy ignorance or ignorance will destroy the United States’. Trump’s bid to ‘Make America Great Again’ was vitalised by this potentially destructive ignorance; racism, misogyny, ableism and homophobia were omnipresent during his campaign and his appointments stoke a similar fire. 

Bill V. Mullen, author of W.E.B. Du Bois: Revolutionary Across the Colour Line’, deconstructs the recent election; making predictions and prescribing the measures necessary to fight this destructive ignorance. 

Three things must be said at the start about the role of racism, xenophobia and nativism in Donald Trump’s victory in the U.S. presidential election.

Firstly, Trump scapegoated immigrants from Mexico and Muslims in what has become a kkk_trumpright-nationalist move globally to split the working-class.  As a result, we have seen an upturn in hate crimes and racist attacks in the U.S., especially against Muslims, in the seven days since the election. African Americans and Latinos, many poor or working-class, overwhelmingly rejected him by margins of 8 and 9 to one. Black women voted against Trump by 93 percent, the highest of any single group in the electorate. Trump’s solid majority of votes was won among whites without a college degree. Though Trump voters did list immigration as one of their main reasons for supporting him, the deeper, longer-term effect of that scapegoating is not easy to determine, it is important to note that Trump’s actual margin of victory among whites was almost exactly the same as Mitt Romney’s over Obama in 2012 (20 percent – 21 percent).  See Mike Davis:

The great surprise of the election was not a huge white working-class shift to Trump but rather his success in retaining the loyalty of Romney voters, and indeed even slightly improving on the latter’s performance amongst evangelicals for whom the election was viewed as a last stand. Thus economic populism and nativism potently combined with, but did not displace, the traditional social conservative agenda[1]

Secondly, voter suppression, especially of minority votes, massively effected the outcome. Hillary Clinton earned 10 million fewer votes than Barack Obama in 2008 and a smaller percentage of the African-American vote than did Obama in 2012: 88 versus 93 percent.  In some states like Wisconsin, Arizona, Texas, and Louisiana, the combination of new “voter I.D.” laws and reduction in polling places likely repressed minority turnout.

Third, the fact that 60 million people in the U.S. voted for an openly racist, nativist, misogynist candidate has devastated and enraged the political morale of many, especially racial minorities. Trump’s formal endorsement by the Ku Klux Klan, his appointment of an anti-semitic white nationalist, Stephen Bannon, to a key advising post, his campaign’s open outreach to white supremacists, is a toxic reminder of the U.S.’s history as a capitalist, slaveholding empire of war, genocide, imperialism and ruin. ‘Whitelash’ is one current popular expression for this development.

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A May Day 2014 Lament for American Labor – Jack Rasmus

Pluto author Jack Rasmus (Epic Recession, 2010; Obama’s Economy: Recovery for the Few, 2012) has written a new article on International Workers’ Day, considering the position of the US working class today, relative to their position five years ago. We’ve reproduced it below.

To find out more about Jack’s books, simply click on the cover images. This week, to celebrate May Day, Pluto is offering 30% off RRP on all its books for one week. Simply go to bit.ly/PluMay30 to activate the discount.

 


Jack Rasmus, 01/05/14

Today, May 1, 2014, is International Labor Day. It is worth summing up how well American workers — and their unions — have fared over the past year; since the so-called economic recovery began in mid-2009; and for the recent decades preceding.

What’s happened to jobs, wages and incomes, health and retirement security, and other indicators of the quality of life for the more than 100 million non-supervisory wage and salary earners — the core of the working class in America — over the past decade and especially since 2009?

What a summary of the facts tell us is as follows:

Rasmus cover 1*While jobs have been created for managers, supervisors, and highly skilled business and technical professionals since 2009, job levels for the core of the American working class—the category of the more than 100 million ‘Production & Non-Supervisory Workers’—is still 11 million below 2007 pre-recession levels. Manufacturing jobs are still 1.4 million fewer today than in 2007, and Construction jobs 1.3 million fewer.

*The real unemployment rate in the US is approximately 14%, when the ‘hidden unemployed’ are added to the ranks of the officially declared full time unemployed (U-3) and underemployed (U-6) estimates. That’s approximately 22 million still jobless after five years of so-called economic recovery.

*The quality of job creation since 2009 has been extremely poor by past historical standards. The US is ‘churning out’ high paying-good benefit jobs for low pay, increasingly part time/temp (contingent) jobs, with few if any benefits. 79% of jobs lost during the recent recession paid more than $14/hr., while 58% of the jobs created since recession were low pay (less than $14 and with a median of only $7.69hr.) Continue reading

What Pluto authors are saying about Syria

Syria CC

Neil Faulkner, author of A Marxist History of the World (Pluto, 2013), wrote for Counterfire last week about the ongoing situation in Syria.

He argues that while a British attack on Syria has been stopped, the Western powers remain highly militarised imperial states – the need for an anti-war movement remains as great as ever. We’ve reproduced the first few paragraphs below. You can read the full thing on Counterfire’s website, here.

The Commons vote against attacking Syria is an historic victory for the global anti-war movement. It marks a serious fracture in the power of Western imperialism.

But, as John Rees observes in another article on this site, a wounded beast is an aggressive and dangerous one. History teaches that imperialism in decline is liable to lash out in ferocious violence.

The last two decades have been shaped by the contradiction between a declining US economy and enduring US military power. It is the weakening of economic leverage that has driven US rulers to launch a series of wars in the Balkans, Central Asia, and the Middle East. The balance between dollar and gun has shifted to make the world a more fractured, violent, and deadly place.

Saturday’s anti-war demonstration should therefore be both a celebration of victory and a protest against the still murderous instincts of our rulers.

Nonetheless, we may be bearing witness to a shift in the tectonic plates of global power.

Jadaliyya co-editor Bassam Haddad (The Dawn of the Arab Uprisings; Pluto, 2012) has also appeared on Democracy Now! and MSNBC to discuss Syria. The following transcript comes from the 1st September interview on MSNBC (reproduced from Jadaliyya, here): Continue reading