Friday, August 2, 2013

We're Doing It Wrong

Chapter 9 Mile

Detroit is bankrupt. Or not. Or it is. Regardless, the city that provided the American Dream's 20th century engine has fallen victim to the 21st century version. By now you've likely heard most of the stats: it was the 5th most populous city in America in 1950 with over 1.8 million (and only a couple hundred thousand short of 3rd), today only about 700,000 remain, nearly a quarter million have left in the past decade alone; half the parks have closed since 2008; 78,000 vacant structures and 60,000 vacant land parcels; 40% of the streetlights are out and the city has just 36 ambulances, of which generally no more than 14 are in operation at any given time, and there about 12,000 fires a year to go along with the highest violent crime rate in the US (why not bust a cap in someone's ass for a few bucks when you can get a pizza delivered faster than it takes the cops to respond, about 58 minutes compared to the 11 minute national average and only 8.7% of the cases are solved compared to 30.5% nationwide); tax collections are down 20% over the past five years and the official unemployment rate stands at 18% which is misleadingly low as less than half of those over 16 are actually working. Oh, and there's $18 billion in debt growing by a few hundred million a year. You know the script by now, cue the neoliberal-agenda-advancing blame game chorus of big government, corrupt politicians, greedy unions and gold-plated pension plans because, as we know, this is an isolated incident that the free market will clean up with its invisible hand, just another black swan, nothing that even an awful Hollywood movie could've predicted:

Er, you mean..., no, it can't be so simp..., seriously? ROBOCOP 2! It couldn't have at least copied the script from the original? Is it really just a transparent attempt to sell off what remains of the commonweal and maybe establish an Ayn Randian tax-free "commonwealth" for our modern day John Galts on Belle Isle selling citizenship at $300,000 a head in hopes of becoming a 'Midwest Tiger' to compete with the Asian Tiger of Singapore? Wait, no, this just seems like a thinly veiled attempt to impose an anarcho-capitalistic future on all of us, after all, $37 million, that's just monopoly money, Omni Consumer Products (OCP) doesn't really exist and we all know there's no such thing as robocops to come and save the day! Alas, that's the point, science fiction isn't meant to read as an instructional manual but a warning. The dream has become a nightmare we must wake from and realize that Detroit is but a microcosm of the defunct American model that celebrates profitability rather than society, individuality over solidarity and conformity but not equality. Otherwise, they'll keep turning up the heat by adding zeroes to the bill, turn OCP into an acronym for Oligarch Controlled Polity while their semi-autonomous drones circle the skies keeping us in line.
 
What's Going On? First off, there is a lot of blame to spread around and it's easy to get lost in detail and fail to separate cause from effect, especially as so many of the latter are easily packaged and sold as the former. Corrupt politicians such as Kwame Kilpatrick taking kickbacks or a city run by a one-party government sure look like causes, but they're not. Even the more obvious culprits such as the '67 race riots and the resultant white-flight or the cities susceptibility to disaster due to the lack of economic diversity that comes with being a one-industry town were nothing but manifestations of the root of the problem. Ditto the city's 60% poverty rate for children and the 50% of the population reported to be functionally illiterate. No, we've gotta go way back, maybe not as far as Adam Smith or David Ricardo as it isn't capitalism itself we need to castigate nor even to Henry Ford's first assembly line to find the cause of Detroit's decline. It might seem a bit unfair and facile but let's simplify things and point the finger at poor old Simon Kuznets and his work developing the first comprehensive set of measures of national income, what we know today as GNP and GDP.

Wait, bear with me a moment as not only will it take at least that long to explain how something as mundane and seemingly practical could be the cause of Motown's meltdown but the reality is Simon saw the great danger of his work from the get go and therefore seems a very good place to start the explanation. In his first report to the US Congress in a section titled "Uses and Abuses of National Income Measurements" he warned:

The valuable capacity of the human mind to simplify a complex situation in a compact characterization becomes dangerous when not controlled in terms of definitely stated criteria. With quantitative measurements especially, the definiteness of the result suggests, often misleadingly, a precision and simplicity in the outlines of the object measured. Measurements of national income are subject to this type of illusion and resulting abuse, especially since they deal with matters that are the center of conflict of opposing social groups where the effectiveness of an argument is often contingent upon oversimplification. [...]

All these qualifications upon estimates of national income as an index of productivity are just as important when income measurements are interpreted from the point of view of economic welfare. But in the latter case additional difficulties will be suggested to anyone who wants to penetrate below the surface of total figures and market values. Economic welfare cannot be adequately measured unless the personal distribution of income is known. And no income measurement undertakes to estimate the reverse side of income, that is, the intensity and unpleasantness of effort going into the earning of income. The welfare of a nation can, therefore, scarcely be inferred from a measurement of national income as defined above.
Pretty prescient stuff for an economist. Unsurprisingly, we failed to heed his warnings and this one number (well, two, GNP and GDP are different) and more specifically making sure it's constantly climbing has become the primary purpose of public policy. In fact, as economics and finance have come to completely rule our lives it's become an unhealthy obsession, the disease of our civilization.

Again, we need to pause and explain ourselves. Growth is good up to a point; there is no denying that life has been improved for billions thanks to the benefits accrued by advancements owed to growth. However,  we need to ask ourselves what is the point of growth if not to improve our quality of life? Now, there's a tricky term, "quality of life", how to measure growth against something so seemingly subjective? Living standards quickly devolves to "material living standards" and how many iPads everyone has. Happiness? Sounds good, but tough to quantify. Satisfaction? Ditto. All equally slippery. So let's start simple and graph the relationship of life expectancy versus per capita GDP in various countries. (More complete country chart can be found here.)

The first thing that jumps out is the near vertical rise on the left side as life expectancy quickly rises along with GDP. However, it's hard to miss the diminishing 'bang for the buck' we get from raising GDP, to the point that it seems to not have much effect after as little as $10,000 per head, hello Costa Rica. Interesting but so what, right? Well, we were originally trying to find the cause for Detroit's demise, but this is our first peek into the likely cause of not only the troubles there plus in Greece, Stockton, CA, Portugal, Jefferson County, Al, , Cyprus and those to come from Baltimore to California to Italy but also into what ails much of the west as efforts around the world for the past 75 years have focused on one thing: increasing GDP.

Superstition
Us humans are amazing in so many ways but one of our biggest failings is the inability to let go of strongly held beliefs, especially when they've explained so much, and worked so well, for so long. GDP and economics is no exception as cognitive dissonance and groupthink combine to create blind spots. Especially in America where after first beginning to recover from the Great Depression and then emerging virtually unscathed from World War II to find itself the only running engine to power the world's economy, GDP continued marching upwards. A key to remember at this point is that much of this period of strong growth coincided with a huge reduction in income (and wealth) inequality as much of the fruits of growth was spread from the penthouse executive board room to the basement boiler room. Also worth noting are the words of the foremost economist of the era, John Maynard Keynes, who upon seeing the tremendous opportunities made possible by growth, predicted that the working week would be cut to perhaps 15 hours a week, with people choosing to have far more leisure time as their material needs were satisfied. Incredibly, his optimistic prediction that (material) living standards in "progressive countries" would be between four and eight times higher was made in 1930, a year into the Great Depression! Sadly, this latter prediction has proved true (living standard in developed western economies will have risen about eightfold by 2030) while the former has fallen flat on its face.

You're probably wondering what all this has to do with Detroit, right? One word, hyphenated or not, like Jay Z: neoliberalism. It has not only robbed us of real progress but also ensures there will be many more Detroits and Greeces to come. See, growth, like so much that tastes good at first but eventually turns poisonous, became addictive. All was good up to the 1970s when the United States' unchallenged position as the colossus of the capitalist world came under assault. Rising international competition (read: Japan) as other nations had finally recovered their industrial base after the war coupled with multiple oil shocks as the Arab world awoke to the rape of their resources in return for peanuts led to declining productivity and profitability along with rampant inflation and unemployment, stagflation. Oh, there was a little war they lost too. The corresponding loss in confidence in the dollar also forced Nixon to end its convertibility to gold and take the world into the little understood world of fiat currencies. About the same time as growth seemed to be stalling, the Club of Rome's The Limits of Growth was making Malthusian claims on the unsustainability of infinite growth. The US was ripe for a revolution and they got it in neoliberalism.

The popular myth is that Ronald Reagan and Margaret Thatcher rode in to save the day. Of course they were nothing but marionettes and we all know that a marionette's puppeteer is called a manipulator and so it should come as no surprise that they also manipulated us. From neoliberal prophet Friedrich Hayek and his Mount Pelerin Society the poison oozed through Milton Friedman into the University of Chicago to spill out into the world via thinktanks spewing propaganda to be transmitted by their media lackeys and forced onto the rest of the world by the IMF, World Bank and WTO. America has the Heritage Foundation, the Cato Institute and the American Enterprise Institute while the UK's versions include the Adam Smith Institute, the Institute of Economic Affairs and the Centre for Policy Studies founded in 1974 by Thatcher's mentor, Keith Joseph. Despite their benign sounding names, these are radical organizations with almost nothing to do with the likes of Adam Smith who understood something about Moral Sentiments and the dangers of private monopolies and everything to do with Hayek, Friedman and Rand and their belief in extreme individualism or social Darwinism. Freedom could only be achieved through economic liberalization meaning free trade, privatization, deregulation and relying on markets to provide public services.

No party on either side of the Atlantic has a monopoly on this evil. Democrat Jimmy Carter began the deregulation of the banking and transportation sectors. His party's Bill Clinton tag teamed with Labour's Tony Blair in devising the "third way" in a failed attempt to reconcile neoliberal economics with a commitment to social justice. This was always just smoke and mirrors to fool the unwashed masses as neoliberalism is inimical to the public good as it is always secondary to the market, an ideology wedded to the belief that the market should be the organizing principle for all political, social and economic considerations. As the benefits of citizenship are allocated on the basis of perceived economic utility to the state, corporations are considered the primary citizens while individuals are seen as consumers first and citizens second, peripheral ones at that. Corporations and those in the 1% are portrayed as job creators while the bottom 20% are framed as economic leeches siphoning off financial benefits they don't deserve when it is the opposite that is true as economic policy is designed to distribute wealth upward. Tax breaks and subsidies for corporations and the wealthy are called market incentives while benefits to the poor, aged or disabled are framed as entitlements. However, rather than withering away, as neoliberal theory would have it, the state has instead grown as it plays an active role in the introduction, implementation and reproduction of neoliberalism.

The Tracks Of My Tears
Yeah, yeah, you're still wondering what all this has to do with Detroit going from being the city with the highest median income to bankruptcy in half a century and what it means to America and the rest of us. History has already been rewritten to tell us high wages and benefits were Henry Ford's idea when in fact they were fought for and won through struggle and solidarity. World War II had cemented Detroit's industrial importance as the Arsenal of Democracy and it seemed a place which was proof of capitalism's ability to generate and maintain a large middle class. The illusion was short-lived as jobs were already flowing out of the city to the suburbs in the 1950s just as the migration of African Americans to the city was increasing, lured by the promise of freedom and opportunity denied to them in Jim Crow's last, desperate days. Instead they were welcomed by white flight, residential segregation and deindustrialization; rising racial tension, ghettoization and joblessness was a recipe for disaster which erupted in the 1967 rebellion. In addition to dollar loss this of course kicked white flight into high gear resulting in the loss of much of the city's tax base. Throw in the oil shocks of the early 70s and their influence on changing consumer requirement and the failure of the auto industry to adapt and you had a city that needed a saviour but instead got no succour.

It's no coincidence that Detroit's decline coincides with that of America as the US had the most wealth for the parasite of neoliberalism to feed off and Detroit was its richest and most vulnerable city. Back in 1960, GM was not only the city's but the nation's largest employer and paid an average hourly wage of $50 in today's dollars, including health and pension benefits; today Walmart has assumed the mantle and pays $8.81 and a third of the workers work less than 28 hours a week and don't qualify for benefits. The ratio of CEO-to-worker pay has ballooned more than 1000% since 1950, from around 20 to 1 to over 200 to 1 (1,795 to 1 at JC Penney). Not only that but the highest tax rate faced by those CEOs was 91%; today it's under 40%. It was those CEOs at the big 3 who made the decisions that sped the demise of Detroit (GM’s Geo Metro 40 miles/gallon for $9,740 in 1991; today GM offers the Volt for $39,145 that requires you to plug it in AND put gas in it to only get 37 miles/gallon) aided and abetted by the neoliberal policies of maintaining short term growth at the cost of long term prosperity. Specifically, it was the financialization of the economy, the pursuit of 'free trade' policies and the war on drugs which sealed the fate of the city.

Neoliberalism is predicated on decreasing the individual's reliance on the state thus increasing their initiative to pull themselves up by the bootstraps. The problem is it is impossible for those mired in poverty to do this when they don't even have any shoes - ie. education, healthcare, adequate nutrition, employment opportunities. Meanwhile, those with closets already overflowing with footwear have their shoes shod whenever they need it. Er, let's try to explain that a bit better starting with the election of Ronald Reagan and the belief that income inequality was a prerequisite to growth. Not only was it seen to provide incentive to work harder but it raised the savings rate at the top and as the rich have a lower marginal propensity to consume than the poor it would therefore accelerate investment. Additionally, demand for new products almost always emerged from among the rich and it was them alone who could afford the cost involved in research and development thus enriching them should augment innovation. In 1981, the Budget Reconciliation Act along with the Recovery Tax Act introduced across the board tax cuts favoring the redistribution of income to the rich, deregulated monopolistic industries and began the war on the poor by reversing many of the social gains made over the previous 50 years. The shooting war, however, came with his war on drugs.

War (What's it Good for?)
Sometimes numbers are staggering enough on their own and require no explanation. When the explanation is every bit as distressing, well, then you've got the American prison industrial complex. Only China comes close to the US in prison population and only Russia approaches them in percentage of the population incarcerated. Though only comprising 5% of the world's population, the US has 25% of the world's prisoners, about 1% of the population is trapped in the system and the total number has increased 700% since 1970. Yes, it's been a booming industry that's seen $300 billion spent since 1980 to expand the prison system. Not only does it provide employment for the gatekeepers, it reduces the eligible workers counted in the unemployment rate. The poor, worth almost nothing to our corporate masters on the streets, can generate revenues of $30-$40 thousand a year behind bars. Unsurprisingly, almost half of federal prisoners are in for drug related offenses. The bipartisan love of war is illustrated by Clinton's signing of the crack cocaine sentencing guideline bill which targeted the poor black community by making crack cocaine convictions exponentially longer than those for powder cocaine. It gets even worse when you realize it was the CIA who introduced crack into inner-cities to fund waging war in Central America. Prison privatization has brought the market into play with the law while prison labour is a pretty attractive alternative for those looking for a, um, captive work force.

We shouldn't ignore that more traditional method of sacrificing the money and lives of the poor for the glorification and enrichment of the wealthy. Much like neoliberalism, the idea that war is good for the economy and therefore beneficial is a societal sickness that has been perpetuated by myth makers who mysteriously profit from this delusion. Here we should pause once again to consider the suicidal tendency involved in believing that GDP growth is a good thing. Did you know for example that the Gulf of Mexico oil spill added about $300 to the average Americans income? The bloated prison system adds about $125. The US medical system isn't the most expensive in the world (while getting worse results than most of the 'advanced' economies) because they like having millions die for lack of basic care (we hope), but because it adds more zeroes to the bottom line and GDP. Add in a bit of conspicuous consumption, insanely priced education and the trillions wasted on war and suddenly it's pretty easy to understand why even though the size of the US economy has doubled since 1970, overall well-being has declined. Reagan pumped up the gravy train flowing from the public to the private purse, Bush the elder began the family tradition of bombing Iraq, Clinton, though he oversaw a reduction in military spending still indulged in some explosions, Dubya, yeah, he almost doubled the amount spent to kill people and Obama has put a smiley face on murder by remote control.

Signed, Sealed, Delivered
It was Bush the elder who got the NAFTA ball rolling and kept the Uruguay Round of trade talks alive but it was Clinton's signature that brought NAFTA and the WTO to life and sealed Detroit's doom. The agreement turned North America into a 'free' trade continent which Clinton promised would promote "more growth, more equality, better preservation of the environment, and a greater possibility of world peace". Oh, and it would create 200,000 jobs. Well, he was only a little over a million off as a report by the Economic Policy Institute documented that 879,280 jobs were "displaced" due to the deal. Thanks to it and other free trade deals pushed on the public to promote growth, the exciting game of labor arbitrage has been played for the past few decades, a game always won by big business as profits are padded at the expense of labor as salaries are slashed and jobs outsourced. While employment protections are rarely included in these deals, NAFTA provided a template for investor protections which effectively remove sovereignty from signing states.When you wonder why neither the public nor your government can ban Monsanto crops to prevent the loss of agricultural diversity or Bayer from killing the bees we depend on for pollination or Chevron from poisoning the water table by fracking you'll be sure to find a clause in one of the corporate written free trade deals one of your governments sold to you as necessary for economic growth.

As mentioned a few hundred paragraphs above, it's rarely those on the throne making the decisions; therefore, its the stories of those who do that make for the grist in this modern day cautionary tale. Clinton's Secretary of the Treasury Robert Rubin was one such Grima Wormtongue. Time Magazine would have us believe he was part of the Committee to Save the World (that's him on the left) when his face should have instead been pasted on a wanted poster. See, the crowning blow in this whole story was the financialization of the economy, a process that has allowed the illusion of economic growth to continue by simply feeding off existing wealth and borrowing from the future. For his service in the creation of the TBTF, TBTJ (too big to fail, too big to jail) bank, he was paid $126 million by the same financial institution whose very existence his policies made possible, Citigroup. Clinton's signing of both the Rubin championed Gramm-Leach-Bliley Act which repealed Glass-Steagall which had kept gambling separate from banking, and the Commodity Futures Modernization Act which prevented the regulation of financial derivatives delivered the coup de grace for Detroit and the rest of us leading us as they did directly to the 2008 financial crisis.

A spike in prices at the pump killing demand for the SUVs that had temporarily saved them combined with the financial crisis bankrupted two of the three Detroit automakers, GM and Chrysler. The same crisis collapsed the Ponzi scheme run by banks that relied on a constant stream of new mortgages to be bundled and securitized and left millions homeless. As this predatory lending targeted African Americans, both Detroit and its residents were among the hardest hit. With an ever-shrinking tax base to support an immutable city infrastructure, budgetary problems have plagued Detroit for the last 20 years. Besides a brief respite in the mid-90s when it was falsely believed that new casinos and stadiums could reverse the city's fiscal problems, the city has been burdened with a junk debt rating. In an attempt to balance the budget, the combination of rising taxes and cuts in services drives out residents and businesses while the erosion to basic social services leads to a drop in home values and rising crime. Desperate politicians become an easy mark for the wizards of Wall Street who seem to offer a way out, and besides, when the bills come due they'll most likely be out of office. While the sheer audacity of the fleecing of Detroit is dwarfed by that of Alabama's Jefferson County bankruptcy tale courtesy of JP Morgan, Detroit could have done without a $2.7 billion bill for borrowing $1.4 billion in 2005 thanks to bankster interest rate swaps and derivatives.

Here's where the morality tale gets good. This financing deal was needed to fill a gap in the city's defined benefit pension funding, the kind that provide a guaranteed annual income after retirement. Public employees paid for those pensions with lower wages while working; n other words they accepted less then to get some later. But get this: governments consistently underfund their pension plans. In Detroit, the gap's about $3.5 billion, but nationwide all levels of government are about $1 trillion short. Not so bad, as Paul Krugman would have us believe, until you consider to come up with this figure necessitates an 8% average return on invested pension assets. D'oh! Not that whole growth thing again. It gets worse. Listening or reading to much of the MSM hype (always stating the $9.2 billion shortfall which includes unfunded health care obligations) one could easily get the impression that there is a movement afoot to convince the public these pensioners are greedy bastards who don't deserve a dime. The bankruptcy process will determine which creditors get paid back and in what order, pension plans justifiably fear they may fall to the bottom of the pile, because you know, society thinks giving $19,000 a year to someone who picked up garbage his whole life isn't as important as paying off banks and hedge funds.

There's the rub. It's true. Go read the comment thread on any article about the Detroit bankruptcy and you'll soon see that Joe Sixpack has been convinced that bailing out banks is/was good as they add to the economy while pensioners are bad as they subtract. They wouldn't consider the continuing bank bailout, as in the quantitative easing program that sees the Fed give banks $85 billion a month in interest free green pieces of paper in exchange for other pieces of paper, could pay off Detroit's debt four times over each month. Nor do they see anything bizarre about a city entering bankruptcy subsidizing a billionaire's hockey team's arena that will see the city pick up almost half of the $650 million tab because corporate welfare is called market incentives and I'm sure that the money sucked out of schools, parks and you know, quality of life things to build Ford Field for the Lions and Comerica Park for the Tigers in the past dozen years has worked out great; a bunch of spanking new stadiums for those who fled to the suburbs and therefore not paying for them  to come in to the city and enjoy while the only chance to see the inside for those paying for them will be if they're selling foam fingers and foamy beers.

Money (That's What I Want)

The press reports unemployment is falling, which is true, but the warped measurement is meaningless as employment isn't rising enough to even keep up with population growth. It's not just an insufficient number of jobs, it's the kind of jobs being created; the low-paying, menial, dead end sort without any benefits. In fact, 60% of the jobs lost during the recession were classified as mid-wage while 58% of the job gains since are low-wage. This wage suppression is great for companies like WalMart who get to have their workforce subsidized by the government as most of their worker earn so little they often qualify for government assistance; tax payers pay on average almost $1 million per store. All this means wealth is flowing up at an ever-increasing rate; 121% of the income gains since 2009 have gone to the 1% (yes it's possible as they've scooped a portion of the rest of the population's pie) while corporate profits are at all-time record levels and wages are at all-time lows. Zooming out from America, the wealth gap between countries is also widening, globally the richest 300 people own more wealth than the poorest 3 billion; the richest 1% have accumulated some 43% of the world's wealth, while the bottom 80% of the planet's inhabitants have just 6% between them. Guess which group is stashing up to $32 trillion in tax havens, effectively removing wealth from circulation.

Cognitive dissonance seems to be hiding the realization that the American Dream is dead, at least in the old idea of each successive generation living better than the previous. This is because neoliberalism is great at pumping up bubbles upon which the rich float while the rest sink with the pop; it's no longer true that a rising tide lifts all boats. Privatization, deregulation, globalization, robotization, computerization and financialization have transformed western capitalism from industrial to financial. In other words we've moved from a system which produced nothing in itself but derived profit from the value created by the exploitation of labour to a system that simply squeezes profit out of existing assets. The former system was able to thrive using the old panem et circenses gambit but with the latter, present system, eventually they'll be no more crumbs to toss to the masses. Suicide rates are already skyrocketing among baby boomers as economic insecurity pushes people over the edge and now their pensions are being circled by the sharks. Meanwhile the young face the choice of fighting for a job at McDonald's or going to university so they can add to the $1.2 trillion in student loan debt and cross their fingers they can get an unpaid apprenticeship position when they're done.

Instead of realizing we're all in this together though, those manipulating puppetmasters will pull our strings using the old techniques of, among many others, media manipulation (I'll scratch your back if you scratch mine), fear (terrorists!), divide and conquer (it's those greedy unions and pensioners!), patriotism ('Murica, F#ck Yeah!) and of course debt servitude to maintain control of the flock. Lockeed was bailed out because they build stuff to blow people up, Chrysler's been bailed out a couple of times, GM once, they build Godcars don't you know, the airlines had to be because of, you know, terrorism and the banks, well, without the banks, we know the whole world as we know it would have ended. What about New York City's bailout in 1975? Well, that's different than Detroit, because, well, it would create moral hazard this time, or something. What's that? What about Mexico? No, they didn't bailout Mexico in order to save face after NAFTA was signed, did they? Yep. But not Detroit.

ABC
Solutions? Well, there's a few out there. The first step, however, is the realization that we're doing it wrong. An economy based on debt (issued by bankers, not government) inevitably collapses on itself. Henry Ford himself said "[i]t is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning". New money is continually lent into existence at the push of a button so that existing debt can be repaid, but by necessity there is always more debt than money to pay it back. The dog chasing his tail leads to the need for infinite growth, an impossibility on a finite planet thanks to our enemy of diminishing returns, entropy. We've got to realize we already have enough known oil and gas reserves to kill ourselves and stop exploiting tar sands, shale gas and the Arctic. We need to refuse to pay a 280,000% markup for our most important resource, water. The purpose of economic policy shouldn't be to stimulate growth but to facilitate life. A transition to a steady state, non growth economy must eventually occur, the question is do we want to move that way gradually of our own choice or have it (or far worse) foisted upon us by the inevitable collapse of the system.

Alternatives to the constant drum beat of growth have been proposed such as Bhutan's Gross National Happiness, the New Economics Foundation's Happy Planet Index, and the Social Progressive Imperative's Social Progress Index. No growth or steady state economic policies need to be explored if we want to get off our suicidal treadmill. Perhaps once the US has been knocked off its perch atop the global GNP rankings by China sometime in the next decade we'll finally de-emphasize its importance. The chant of 'We're #2!" just doesn't have the same allure. America will still lead in such prestigious areas as anxiety disorders, obesity (well, Mexico might have passed them), incarceration rates, small arms ownership, health care cost, and energy use. Huh, taken together with the other effects of Detroit's problems mistaken for its cause, such as that 50% literacy rate and other societal diseases prevalent in America, one can make a case for simply finding a way to better spread the wealth than grow it. It seems we should take a lesson from the extreme wealth of Bloomfield Hills and Grosse Pointe and extreme poverty of most of Detroit co-existing in an urban metropolitan area. Yes, in fact if I remember right there's a chart that shows the relationship between income inequality and an index of health and societal problems constructed by a couple of epidemiologists. Yeah, perhaps we should look at this a little closer, or maybe we'll save that for next time.


Saturday, July 13, 2013

The Year of Leaking Dangerously

Yossarian was cold, too, and shivering uncontrollably. He felt goose pimples clacking all over him as he gazed down despondently at the grim secret Snowden had spilled all over the messy floor. It was easy to read the message in his entrails. Man was matter, that was Snowden’s secret. Drop him out a window and he’ll fall. Set fire to him and he’ll burn. Bury him and he’ll rot, like other kinds of garbage. The spirit gone, man is garbage. That was Snowden’s secret. Ripeness was all. - Joseph Heller; Catch-22
Edward Snowden didn't tell us anything most of us didn't already sorta-kinda know, but instead just confirmed our creepy totalitarian state surveillance nightmares. Wait, no, actually he made them a bit scarier by exposing the corporate complicity giving the whole thing a fascist twist. Similarly, the character of Yosarian lying in the hospital bed at the outset of Catch-22 had already experienced holding another Snowden in his arms. This one spilled his guts too, literally onto the floor forcing Yossarian to confront his own mortality and the realization that death can, and will, take any of us, at any time, anywhere, and that survival is made all the harder by the catch-22s thrown up to block and muddy our path.

Both Snowdens just passed on information which is meaningless in itself yet has value; in fact it is the most valuable thing in the world to governments, corporations and us because of what we can do with it. However, our brains, as our bodies, are all different and subject to manipulation due to freezes, failures and farts. Vituperative voices will try to convince us everything's okay as it's only metadata their gathering about us, there's only a few thousand pedophiles with top-level security clearance to your kids' Facebook feed, everyone's doing it and you know, it was only Iran they launched the cyber weapon Stuxnet against. Turn off your TV, disconnect your internet and lobotomize your smartphone cause you won't find the true meaning of Edward Snowden's revelations to the world on any propaganda screen. All you've got to do is open a book, or just talk to an old lady, to figure out Catch-22 says they have a right to do anything we can't stop them from doing. What? Don't have the time or the attention span? Who's this 'they'? No worries as in this case it's so simple all you'll need is the Cliff's notes version of the major themes of Catch-22: the concept of Catch-22, the distortion of justice, the influence of greed, and the issue of personal integrity.
"All my options are bad" - Edward Snowden
Edward Snowden's caught in a sorta catch-22 though it's starting to look more like a no-win situation after watching the US order their western European 'partners' to close their airspace to Evo Morales' presidential jet after receiving some, um, bad information that Snowden was on board. He may have been granted asylum in quite a few of the countries he applied to but he had to be in the granting country for them to consider his request which is difficult, er, impossible if you're stuck in passportless limbo in transit at an airport in Moscow. In the book, Yossarian is introduced to the concept of catch-22 by Doc Daneeka who explains the problem, or catch, involved in requesting a psych evaluation which Yossarian hoped would find them unfit to fly dangerous missions:
"You mean there's a catch?"
"Sure there's a catch", Doc Daneeka replied. "Catch-22. Anyone who wants to get out of combat duty isn't really crazy.
They've had each of us by the balls like this at some point, trapped in a bureaucratic black hole, looping around a Möbius strip application process or stymied by the slave labour internship motto: you can’t get hired unless you have experience; but you can’t get experience unless you’re hired.  Now we're all supposedly caught in one, er make that two or three, in which we seem to be damned if we do and damned if we don't: the new security versus liberty balance that needs to be struck thanks to the Information, the global war on terror (I know, it's not called that anymore and that it has become the global war on you), and economic austerity. All three are examples that governments and their corporate cronies are presenting as catch-22s that their wisdom will guide us through but are nothing but false choices forcing us into vicious circles.
"Most people prefer to believe that their leaders are just and fair, even in the face of evidence to the contrary, because once a citizen acknowledges that the government under which he lives is lying and corrupt, the citizen has to choose what he or she will do about it. To take action in the face of corrupt government entails risks of harm to life and loved ones. To choose to do nothing is to surrender one's self-image of standing for principles. Most people do not have the courage to face that choice. Hence, most propaganda is not designed to fool the critical thinker but only to give moral cowards an excuse not to think at all." - Michael Rivero
You can watch then-senator Biden debate president Obama on government surveillance but it's probably more illustrative to watch the the present double good duckspeaker in chief debate his candidate self from 2007 regarding the security versus liberty balancing act:


Thanks O, you almost convinced me that I didn't have to haul out the old Ben Franklin "[t]hey who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety", but not quite. Still, if you're an Obamabot or a terrorism fearmongerer, cognitive dissonance won't allow you to see the danger the slide from freedom to security, ever accelerating post 9/11, poses to us. They don't seem to have a problem with giving General Keith Alexander, who seems to have mistaken 1984 for an instruction manual instead of a warning, near complete control over their information lives and Strangelovian powers to wage cyberwarfare. Americans celebrate the Fourth of July without a Fourth (or Fifth) Amendment, air travellers the world over submit themselves to ever greater humiliations, home school advocates are classified as potential domestic terrorists by the DHS and now we know that everything we say, type and text is being gobbled up for analysis in the hope of finding the next Paul Revere, er, I mean terrorist.

Oh, speaking of traitorous heroes, Obama sure loves using the 1917 Espionage Act, a measure intended to prevent anti-war speech during WWI by treating it as sedition (note to Pelosi, Boehner et al. the word you're looking for is there in the act, sedition, not treason). Edward Snowden became the eighth to be charged under the act under Obama, double the number of times it was used by all his predecessors. Defenders of surveillance overreach invariably trot out the "if you've got nothing to hide, you've got nothing to worry about" canard. If you, as an individual, non-threatening person, have nothing to hide then, yes, they’re probably right, until they're wrong, you personally may have nothing to fear. But those people who do put their heads above the parapet on your behalf, they will be the ones that feel the heat…It’s not about your personal privacy, it’s about the privacy of those who would stand up and fight for you.
"It has been the one song of those who thirst after absolute power that the interest of the state requires that its affairs should be conducted in secret… But the more such arguments disguise themselves under the mask of public welfare, the more oppressive is the slavery to which they will lead… Better that right counsels be known to enemies than that the evil secrets of tyrants should be concealed from the citizens. They who can treat secretly the affairs of a nation have it absolutely under their authority; and as they plot against the enemy in time of war, so do they against the citizens in time of peace." - Benedict de Spinoza, Tractatus Politicus
Ah, where would America be without the global war on terror now approaching it's twelfth anniversary. Without it they'd never be able to justify the imbalance of having an economy that produces about 20% of the world's GDP while their bloated defense budget forces them to maintain a 40-50% of global military spending. Yeah, they spend more on defense than the next 13 nations combined. The non-stop invocation of the word terrorist has not only brewed up an alphabet stew of new freedom protecting acronyms but also given us a whole new dictionary to interpret the altered bearings of our moral compass: wars of choice, extraordinary rendition, enhanced interrogation, indefinite detention, disposition matrix, black sites, signature strikes, they all sound nearly benign. It's all forced on us, a catch-22: we love our freedom, they hate our freedoms and will do anything to take them away, so we allow our freedoms and theirs to be taken away to wage a war to stop them from taking away what we've already given away. Or something like that. Yet the very policies of aggression and militarism justified in the name of combatting terrorism are creating the terrorists those policies are designed to combat. It is not their hatred but ours, US policy and aggression in the Muslim world, that creates terrorists as shown in the American government's own 2004 report. Indeed, the American government has been providing arms, money and logistical support to Al Qaeda in Syria, Libya, Mali, Bosnia and related Muslim terrorists in Chechnya, Iran, and many other countries. What's that you say? It goes back even further, like this:
Did you hear the one about the Harvard economics professors whose research found a close correlation between high levels of public debt and slow economic growth? No? Oh, boy, it's a doozy of a joke. How does it go, um, let's see, ok, so Rogoff and Reinhart do their research, economic research that is, and then wrote a paper, an economics paper you know, and governments around the world used their findings, economic findings believe it or not, to lend the cover of  intellectual rigor to justify their policies, yep, economic policies, which have caused untold, immeasurable damage to lives around the world leaving millions worse off, or you know, deader than they needed to be thanks to class war weapons of austerity such as the sequester in the US, the fantastical belief in a magical creature known as the confidence fairy or even an oxymoron as blatant as the UK's expansionary fiscal contraction. What? You don't get it? Well, let me explain. First, economics is a joke, a fraudulent pseudoscience dreamed up to justify class warfare, a war in which the punchline is a catch-22 designed to keep the rich, rich and the poor, well, poorer.

How did it work? Easy. You see, though the whole kerfuffle is being sold as a simple Excel spreadsheet error, the truth is it isn't a bug but a feature. It works a little like the whole WMD thing in Iraq: you dream up a plan that seems suspiciously like a modern day Crusade and then come up with a whole bunch of reasons to put it into action, throw them at the wall by having your media stooges, er, Judith Millers, pound the drums of war and see which ones stick. You remember, right? Niger uranium forgeries courtesy of the Italian military intelligence SISMI (another oxymoron?), aluminum tubes for enrichment and a dosier sexed up by a lap dog ally to fit Americas claims which all lead to 16 words and a million or so casualties. The same playbook was used for austerity. In both cases we're seemingly left in a catch-22, one designed to find scapegoat for a manufactured crisis to enrich those at the top and control, crush or kill those down below. Ah, sweet confirmation bias, what havoc will you wreak next?
We can never forget that everything Hitler did in Germany was "legal" and everything the Hungarian freedom fighters did in Hungary was "illegal." - Martin Luther King Jr., Letter From a Birmingham Jail
One of the most amusing aspects of the Edward Snowden saga was the reaction, indignation and mocked the irony and hypocrisy of seeking help from countries known more for their repressive regimes than civil liberty protections. Secretary of State John Kerry wondered "if Snowden chose Russia or China for assistance because they are such bastions of Internet freedom?", Dick Cheney was "deeply suspicious obviously because he went to China" while freedom fries TV taunted him with "I don’t remember Martin Luther King Jr. and Rosa Parks running off to China". Unless your deaf you should be able to pick up the echoes of the McArthyite red baiting techniques described in Heller's Catch-22 and understand why our modern Snowden chose to get out of Dodge before the sheriff showed up.
consternation to the fact that he chose to flee the idyllic paradise of Hawaii and protection of American law for first Hong Kong and then Moscow. They

The perfect foil to our Snowden is Heller's Clevinger, who trained with Yossarian at cadet school. A gangling, scholarship prize-winning, petition signing, discussion group attending, committee organizing Harvard undergraduate certain to go far in the academic world: "In short, Clevinger was one of those people with lots of intelligence and no brains...In short he was a dope". In describing Snowden, our fourth estate, those who should serve as a check on power but instead are subservient to them, having found they couldn't refute the message have gone after the messenger just as they did with Daniel Ellsberg, Julian Assange, Bradley Manning and everyone else the public needs to know are guilty. Anyway, thanks to our distract-at-any-cost press we know Snowden seems handsome to both the Chinese public and Russian spies, is obviously weird as well as a grandiose narcissist, wasn't very neighbourly, didn't visit his mother enough and was a high school dropout who couldn't even make it through community college. Oh where would the world be without the infinite wisdom of the likes of Megan McArdle, Jeffrey Toobin and David Brooks? That's right, maybe debating the legitimacy of surveillance programs, their creepy government/corporate ties and the secrecy surrounding them instead of playing at armchair psychologist in order to incriminate a man before he's even had a trial.

In our catch-22 world, Snowden, like Clevinger, is guilty, otherwise he wouldn't be accused, of what it doesn't matter. Both men pointed out problems hoping for improvement, but Clevinger didn't understand that tripping while marching to class would bring accusations of "breaking ranks while in formation, felonious assault, indiscriminate behavior, mopery, high treason, provoking, being a smart guy, listening to classical music, and so on" while Snowden knew the price of exposing his superiors errors. Bradley Manning, found guilty by his president before his trial, waited over a thousand days  for his trial, nine months of which he was forced to withstand torture in order to break his will. Clevinger faced a trial in which his accuser, Lieutenant Scheisskopf, was not only prosecutor, defender and one of the judges but also earned a promotion to colonel during the proceedings. Manning's is little different. Make no mistake, Snowden's civilian status wouldn't make a difference, neither would have alerting his authorities through the 'proper channels', one need look no further than the example of another NSA whistleblower, Thomas Drake and the persecution he has endured.

Finally, the key word has been whispered, whistleblower. There will never be a concensus opinion as to whether or not the term applies to Snowden, in fact there will never be an agreement on what constitutes a whistleblower. To my mind it is someone who releases materials or information that is of greater value to the public than the value of keeping it secret while the definition in the law refers to someone who "reasonably believes" he or she is disclosing a violation of law or rule or gross mismanagement, gross waste or abuse of authority. Snowden pulled the curtain back on the panopticon surveillance methods that contravene the protections of the Fourth Amendment which affirms "[t]he right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized." Thanks to a judicially created exception to the ammendment in 1989 and the necessities of perpetual war, the definition of what is reasonable has been lost forever.

However, it is a moot point. In America, legal justifications can be invented to start wars, torture, kidnap and kill at will in order to keep war criminals walking the streets, laws and court ruling are made to protect corporations from charges of fraud, mislabeling, side effects, accidental death, destroying the food chain or blowing up the financial world, or failing that, those same corporations can just pay a fine and deny responsibility for defrauding millions while earning billions or aiding drug lords and terrorists. However, if you're an intelligence worker you were left out of the fig leaf of protection proffered by last year’s Whistleblower’s Protection Enhancement Act. Likewise, intelligence workers were excluded from whistle blower protections offered to military contract employees under the most recent National Defense Authorization Act (NDAA). Meanwhile, So, faced with the information he had, Snowden was left with the choice of saying nothing or reporting the abuses to his superior at Booz Allen and crossing his fingers he wouldn't get fired. Kinda sounds like a catch-22 again, doesn't it?

The noose is tightening around the neck of freedom yet its incremental nature has us all playing the part of boiling frogs (I think that's what you call a mixed metaphor). Even as the heat has been turned up recently with new revelations coming daily of IRS targeting of special groups, reporters being hounded, Americans being monitored and now even the whole world, most seem happy slowly cooking to death blissfully unaware of what is happening. If the US government wants to spy on someone they must ask permission from the court set up by the Foreign Intelligence Surveillance Act, a court made up of 11 judges appointed by one man without oversight or confirmation. When that man is an ideologue such as John Roberts, well, you get a kangaroo court with a rubber stamp as the only possible check on the Panopticon denies a whopping .03% of requests, 11 of over 33,900. Here we'd do well to remember poor Clevinger as once you're a suspect, well, they'll find something, "[t]he case against Clevinger was open and shut. The only thing missing was something to charge him with."

Sure, the majority of even Americans see Snowden as a whistleblower, the world is more informed thanks to his bravery but unless you're a pro-Israeli lobbyist, the security state will punish you to send a clear message that government codes of conduct supercede those quaint moral ones. When trillions of new pages are classified each year and millions have security clearance (about 4.8 million potential Snowdens) under an administration intent on waging another war, this one on leakers (notice the parallel creepiness of Obama's the Insider Threats program and Captain Black’s "Glorious Loyalty Oath Crusade" in Catch-22), you have a recipe for confrontation. Whether it leads to a world heralded by today's mainstream media in which even journalism becomes a punishable crime or we wake up to the threat and heed the words of a real journalism, Edward R. Murrow, "[w]e must not confuse dissent with disloyalty" is shaping up to be the ideological battle of our time.
"When I look up, I see people cashing in. I don't see heaven or saints or angels. I see people cashing in on every decent impulse and every human tragedy." - Yossarian
It's the cancerous influence of greed that makes the whole thing tick and so once again we not only need to look at the avarice displayed in Catch-22 to get a better idea of what's going on but the disease of esurience plaguing modern society. Marx called them rentier capitalists which sounds a bit too French so modern economists call them rent-seekers but are more easily understood by the monikers given to them by Adam Smith: indolent maggots, moocher-elites and parasites. The Wall Street code word would be extractionists but no matter the label, their rise to dominance clearly marked the transition from industrial capitalism in which production was reliant on extracting profit from labour to financial capitalism which is entirely reliant on squeezing profit out of existing assets. Heller's Milo Minderbender, the embodiment of modern business with no allegiance to any country, person or principle unless it pays him, represents the extreme out of control nature of capitalism in a catch-22 world where profit trumps ideology. The other characters' acceptance of and support for his M & M Enterprises mirrors modern society's moral complacency regarding sustaining power and gaining profit at the expense of the individual.

Much as the main function of the war on terror is to produce more terrorists to justify more war, the security state has become a self-perpetuating machine to substantiate the need for ever greater surveillance with the end result of both being less freedoms for most and greater profits for the few. What else can they do with all the data but hire more people to analyze it and discover the data set is broad but shallow which will necessitate gathering even more data. Why do you think they're building a facility able to store 20 terabytes a minute and capable of storing 5 zettabytes, about 5 years of global Internet traffic. A near forgotten element of the Snowden affair is the exposure of the links between the public and private sphere. Sure, we've known of the dangers of the military industrial complex since at least 1961, the same year Catch-22 was published, thanks to Eisenhower's prescient warning but have sat back and watched the privatization of war reach ever more dangerous extremes in Iraq and Afghanistan. Still, we should be shocked at the close and still growing relationship between the NSA and Silicon Valley, a relationship that sees the same information, our information, feed the two-headed monster for government surveillance purposes and private business so as to stimulate desires and sell goods and services. The military industrial complex has morphed into the corporate military technological complex.

Thus far we've turned a blind eye to private mercenaries such as Blackwater, or should I say Xe, no wait, I think it's Academi now I think (it's so complicated avoiding prosecution!), Halliburton and DynCorp gorge from the public trough afforded by perpetual war as it's only about killing brown people in faraway lands. Now we know that we are in the sites of companies like Booz Allen just one of hundreds of private contractors employing over half a million people with the same access as Snowden. Oh, each of them are making six figure salaries to spy on you at your cost. In the fiscal year ended in March 2013, Booz Allen Hamilton, majority-owned by the nefarious private equity Carlyle Group (even the neoliberal apologist Economist agrees!), reported $5.76 billion in revenue, 99% of which came from government contracts. In fact, along with companies such as Science Applications International Corp, CACI and BAE Systems, private contractors suck up about 70% of the $75 billion US intelligence budget, a budget that has ballooned since 9/11, growing 250% between 2000 and 2010. Oh, and just like every other sector of the economy, that money isn't trickling down to you and me but to those who get to ride the revolving door. Again Booz Allen is the perfect example as the former director of US national intelligence John "Mike McConnell is now a Booz Allen vice-president while his successor in the director's chair is James Clapper, a former Booz Allen executive. Just like the banking, energy, agriculture, you name it sector, the same story can be told over and over again.

Just as we at first cheered Milo Minderbender's seemingly harmless profiteering at the expense of the ridiculous bureaucracy that perpetuates war, many would (and probably still do) defend such privatization as beneficial, perhaps even paraphrasing Milo's catchphrase claim that "everyone has a share" with something along the lines of "a rising tide lifts all boats". Much as the one time president of General Motors when asked if he could make a decision that would adversely affect his former company during the confirmation hearings for his nomination as Secretary of Defense answered affirmatively but added he could not conceive of such a situation "because for years I thought what was good for our country was good for General Motors, and vice versa", Milo believed "[w]hat's good for M & M Enterprises is good for the country". While this may have had a grain of truth in the productive phase of capitalism, the casino style financialization of the economy destroys wealth for all but the few and eventually begins to cannibalize itself. A cash-strapped Milo winds up contracting the Germans to bomb his own squadron resulting in the death and wounding of many men; a cash-strapped financial sector blew up the economy and blackmailed the public to bail them out, exploding national deficits which was then used as an excuse for austerity programs resulting in the death and suffering of many.

Um, where was I? Right, Snowden. Well, those who hadn't noticed that our wealth is being bled for the benefit of the few in a bottom-up transfusion before Edward shone his spotlight are more likely than not still in the dark. As Yossarian watched Catch-22's Snowden bleed to death he could do little more that say "there, there" as the morphine supply in the bomber's first-aid kit had been absconded by Milo for sale on the black market. Milo sold the squadrons parachutes and we sacrifice our social safety net. Even after Milo seemed to have gone too far, with American newspapers and congressmen denouncing the German bombing, all he had to do was open his books and show what a wonderful profit he made. Just as bankers and other members of today's elite, he gets away scot-free, keeps his ill-gotten gains and all is forgiven.
"Saints should always be judged guilty until they are proved innocent, but the tests that have to be applied to them are not, of course, the same in all cases."- George Orwell; Reflections on Gandhi
Finally we get around to the final issue of personal integrity. Throughout most of the novel, (spoiler alert, go read the damn thing already!), before we have redefined Snowden's secret through Yossarian's conversion, self-preservation at all costs seems to be his paramount concern. Just as he knows the number of missions he'll need to complete will always be increased by his superior Colonel Cathcart until he winds up dead, we also know our freedoms will be diminished one by one until they are all gone. Yossarian's increasingly damaging acts of sabotage and disobedience make it clear to Cathcart he won't be promoted as long as Yossarian is around, and worse, the more he gets away with, the more hope he gives to the less powerful: "Say, if they do let you (Yossarian) get away with it (not flying missions), they'll have to let the rest of us get away with it, won't they?...I hope you do get away with it". Likewise, our Ellsbergs, Mannings, Schwartzes and Snowdens commit acts on our behalf that not only expose the wrongdoings of our leaders but also raise our hopes.
 
Ultimately, Yossarian is offered a choice between saving himself but having to lie about his experiences of war and saving his squadron by facing a court martial. His concern for others creates a new catch-22 as the secret hidden in the entrails of Snowden finally becomes clear: life is not worth living without a moral concern for others, but this moral concern endangers one's own life. In a way, Edward Snowden has helped show us that as a society we are being offered a similar choice: to continue on our path accepting (or, as ever, denying) a life of diminished freedoms in exchange for safety or to risk our comforts in search of something better. Every day that we accept what is being done to us we choose to save ourselves while leaving everyone else out to dry. Yossarian's choice of a third option, desertion, makes him an anti-hero, but his intent is made clear when he says "I'm not running away from my responsibilities. I'm running to them. There's nothing negative about running away to save my life".

We never learn if Yossarian ever makes it to Sweden but he left the army a free man. Our Snowden may never make it to Venezuela and has been stuck in a Russian airport for weeks but at least he's a free man. There comes a moment in Catch-22 when both the reader and Yossarian come to feel shame for our amused tolerance of the evil characters and indifference to what is occurring, first laughing at the absurdities then looking back in horror at what we laughed at. Patriots are those who protect us from governments which only feel the need to be "the least untruthful". If the very definition of treason and/or espionage involves the participants interaction with an enemy, then just who is the enemy with whom Snowden interacted? In this case it is everyone that is being spied on. We are the official enemy of the Corporate Controlled Government. Catch-22 says they have a right to do anything we can't stop them from doing. It is this simple, and this terrible. Catch-22 means whatever they want it to mean and it's no longer a laughing matter.

H/T to my wife for remembering random snippets of reality!

And a few more random quotes:
"The important thing is to keep them pledging," he explained to his cohorts. "It doesn't matter whether they mean it or not. That's why they make little kids pledge allegiance even before they know what 'pledge' and 'allegiance' mean." - Joseph Heller; Catch-22
 "The duty of a patriot is to protect his country from its government." - Thomas Paine
"This is the truth. You should decide whether we need to be doing this." - Edward Snowden

"Remember this, take it to heart, live by it, die for it if necessary: that our patriotism is medieval, outworn, obsolete; that the modern patriotism, the true patriotism, the only rational patriotism, is loyalty to the Nation All the time, loyalty to the Government when it deserves it" - Mark Twain; The Czar's Soliloquy, 1905.

"I believe people have a right to know what governments and corporations are doing behind closed doors," - Jeremy Hammond

"The notion that a radical is one who hates his country is naïve and usually idiotic. He is, more likely, one who likes his country more than the rest of us, and is thus more disturbed than the rest of us when he sees it debauched. He is not a bad citizen turning to crime; he is a good citizen driven to despair." - H.L. Mencken

"We need to take information, wherever it is stored, make our copies and share them with the world." - Aaron Swartz

"In every age it has been the tyrant, the oppressor and the exploiter who has wrapped himself in the cloak of patriotism, or religion, or both to deceive and overawe the People." - Eugene Debs; Voices of a People's History of the United States

"I want people to see the truth, because without information you cannot make informed decisions as a public." - Bradley Manning

"Catch-22 did not exist, he was positive of that, but it made no difference. What did matter was that everyone thought it existed, and that was much worse, for there was no object or text to ridicule or refute, to accuse, criticize, attack, amend, hate, revile, spit at, rip to shreds, trample upon or burn up." - Joseph Heller; Catch-22

Thursday, May 2, 2013

Thatcher's Poland

My mistake was not waiting to light my cigarette until after I'd passed the pawn shop. The lombard, as they call them here, opened only a few months ago but it's quickly become a favorite hangout for young and old alike. Bizarrely, you're just as likely to see a group of old fogies as a gang of kids ogling the phones in the window, dreaming of the day when they can afford to light up the screens with the slide of a fingertip to signal to the those around them they are worthy while sending and receiving signals from around the world.

As I hit the corner of the main drag, I suddenly remembered I needed cash. Lucky every other building is now a bank while the majority of those in between are oft-time ironically named cheque cashing joints like Happy Credit, mortgage brokers and aptly named kantors (foreign exchange) such as Joker Kantor, so cash was flowing free and easy. Well, apparently not for buddy who was on me like a fly on shit as I waited for the bank machine.

- "Daj mi papierosa" (Give me a cigarette) Came the predictable plea.
- "Jest moj ostatni" (It's my last) I tried to parry.
- "Give me cigarette"
Fuck. Something about my amazing (!?) accent had given me away making me both a prey and a mark.
- "Cigarette!" He barked.
My smoke was now the focus of both our attentions as I raised it to my lips and dropped it to my side. A couple of quick drags and I hand him the butt but he still doesn't budge.
- "One, two beer. How much?" Guess he's thirsty, too. After all it's almost noon.
- "I dunno, depends which" I answer, giving him a shoulder slap to his right shoulder while dodging to my right and slide into the bank machine as the previous customer walks out.

Cash in hand, smoke accoster nowhere in sight, I continued my walk towards first the train and then my work station beyond. As the flow of traffic peppered with the odd late model Porsche and communist era Polski Fiat 126p whizzed by I pass the Golden Arches just in time to see a herd of diabetic fat kids stream out the door, miraculously avoiding the two drunks splayed on the pavement leaning against each other for support as they dream of their next drink. Next up is the wheelchair beggar at his post just past the rail yard and in front of the trade center on the corner where I turn toward the university. Fortunately I'm shielded from his view as I pass by a gaggle of home decor/gardening/fashion enthusiasts clutching their conference bags filled with soon-to-be landfill waste and don't have to respond to his plea for the zloty (cash) he'd need to survive the next 24 hours.

Turning onto the bridge I walked past the newly completed portion of the train station, already covered in grime thanks to the pollution along with the road work and construction of the monstrous mall and even more ginormous parking garage that will be attached to the new Poznan train terminal. Wired gates control traffic at the end the bridge where the roadworks are most intense. Cars jockey for position from all sides as I emerged onto the zebra crossing with my usual contempt for motorized traffic. My second confrontation of the day comes when a car creeps up to my knee and we lock eyes, I point to the crossing and he starts yelling through his windscreen. Flipping him the bird I've already had two opportunities to fight and I haven't been out of the flat for 20 minutes.

That's when I found out Margaret Thatcher had died. I didn't have to wait to read about it in the obituaries or the newspaper, the words accompanied the beep that lit up my cellphone (fortunately I'm still holding onto my decade old Nokia brick and haven't yet needed to join the gawkers in front of the lombard).

"Ding dong, the witch is dead!"

Having come from a British friend that's all that was needed to convey the news. The fraction of a second it took for the impulse to smile to travel from my brain was long enough to allow the guilt for having such a feeling to arrest the curl of my lips before they'd even crinkled. I had to stop and look around. Here I was in Poland about to walk into university to teach a group of students whose parents most likely believe the Iron Lady was at least in part to thank for causing Communist USSR to crumble. The knowledge was more likely than not passed to their offspring subconsciously, like the information transmission of DNA, the kids probably don't even know what they, well, know. The terms Thatcher's Britain and Thatcher's child took no time to enter the lexicon and then the OED, and now standing on the corner with a Beyonce for H&M billboard to my left commanding women to buy her swimsuit or suffer social ostracism, if one's different, one's bound to be lonely, and a Szybcy i Wsciekli 6 (Fast & the Furious 6) billboard to my right reminding me of Thatcher's possibly apocryphal quote "[a] man who, beyond the age of 26, finds himself on a bus can count himself as a failure", I couldn't help wonder how much this was Thatcher's Poland.

"Who controls the past controls the future: who controls the present controls the past"
- Orwell, 1984

Upon noticing a book carried by one of my first Polish private students with Ronald Reagan on the cover, I was informed that Saint Ronnie along with John Paul II and Margaret Thatcher were his heroes: the holy trinity of freedom, a triptych of Maggie, Ronnie and JP2 on the mantelpiece of every good home. It's one of those things everyone here just knows just as I knew at that moment that Thatcher's passing wasn't going to go quietly; an information war every bit as deadly as the shooting kind she loved so much was already under way to remake her legacy, reframe the perspective and retard the rest of us.

Had she been a man, Margaret Thatcher could easily have been called Iron Balls as she had conviction in her beliefs if she had anything. Instead, thanks to her power to make most shrink around her, she was ironically given the nickname she came to love by the system she loathed. Accusing her of trying to revive the cold war, the Soviet Army newspaper Krasnaja Zvezda (Red Star) dubbed the then leader of the opposition železnaja dama (the Iron Lady) in January of 1976.

Seems as with everything else about Lady Thatcher, measuring the impact of her role in the fall of the Soviet Union is too subjective to measure, a hagiographic effort at best. Sure, after meeting Mikhail Gorbachev in 1984 she declared "We can do business together" and shortly thereafter the official party policy of glasnost was adopted in the USSR. However a near identical phrase "I think they can do business together" had been uttered in February of the same year by the American Senate Majority Leader Howard H Baker Jr. in reference to Reagan's potential meeting with the then Soviet leader Konstantin Chernenko.

Her bold assertions that there was no alternative nor any such thing as society, delivered in a tone both boring and boring, made her seem so decisive and divisive but when examined in context become wishy-washy and banal. Should we celebrate the life or death of a lady who may have had a hand in bringing about a Brave New World order by bringing down the (iron) curtain on our 1984 future? How does one shed a tear for a woman who had no qualms about ordering the death of hundreds of 'Argies' sailing away from a fight, not only allowed the US to station nuclear tipped cruise missiles on British soil to up the Cold War ante but also to use British bases for bombing raids on Libya, and above all, taught us to be selfish and that the pain of others isn't our problem?

But did she help save the Poles and the rest from communism? Unanswerable and doubtful but Poland's neoliberal lackey foreign minister Radek Sikorski eulogized her as a "fearless champion of liberty". We can guess how the Argentinians feel about how she saved the Malvinas. Barack Obama trotted out the obligatory praise saying she was "one of the great champions of freedom and liberty". Why don't we ask a Chilean if she helped or hurt their struggle against her buddy Pinochet by thanking him for "bringing democracy to Chile" by murdering the people's elected representative. I'm sure the tens of thousands murdered, hundreds of thousands tortured and million plus forced to flee Chile under his dictatorship would disagree.

The Economist magazine, bringing the tru to Minitru and where 2+2=5, eulogized "[t]he essence of Thatcherism was to oppose the status quo and bet on freedom", thus doing their part to ensure her support of the South African apartheid regime is lost down the memory hole. Not only did she once refer to Nelson Mandela's ANC as a "typical terrorist organization" while her spokesman said it was "cloud-cuckoo land for anyone to believe" they could run the country, she somehow worked the doublethink trick of projecting opposition to the racist regime while befriending then Premier P.W. Botha. She celebrated her friendship with Indonesia's General Suharto calling hime "one of our very best and most valuable friends" for having killed 500,000 suspected Communists in Indonesia before moving on to invade East Timor in 1975 to massacre around 250,000 men, women and children on the island. Her government helped arm Saddam Hussein, lent a hand to Pol Pot and hailed General Mohammed Zia ul-Haq's work in Pakistan that laid the groundwork for the Islamic radicalization of a whole generation.

Perhaps the greatest paradox of the woman was just that, she was a woman. In 1970, a week after becoming Secretary of State for Education and Science, she was asked if she would she like to become the first woman Prime Minister. "No," she answered emphatically, "there will not be a woman Prime Minister in my lifetime—the male population is too prejudiced." Of the movement and activists which possibly did more to change the 20th century than any other and opened the door to 10 Downing to her, she reportedly told an adviser, "[t]he feminists hate me, don’t they? And I don’t blame them. For I hate feminism. It is poison." In 1982 she said "The battle for women's rights has largely been won" which explains why she never felt the need to speak out against domestic violence, rape, sexual abuse or harassment or how women earned about 60 cents to the dollar of men's wages. She gave the appearance of smashing the glass ceiling while in fact pulling up the ladder, famously promoting only a single woman to a cabinet position preferring instead to surround herself with vegetables. Is it sexist of me to wonder how a mother of two could also become Maggie Thatcher the milk-snatcher by taking away kids' milk? Despite her portrayal as a greengrocer's daughter who had to fight to the top, she seems to have been a daddy's girl who married well which allowed her the luxury to study and hire a nanny.

Apologists rose to Thatcher's defense to claim her actions were a product of the times, the ends justified the means and of course, war is peace. Her sales pitch to a roomful of Saudis, "I'll have one of those!" while stroking a gleaming missile, to seal the $80 billion Al Yamamah arms deal wasn't meant for public consumption as 'batting for Britain' really involved billions in black money to bribe Saudi princes and add to the bottom line of BAE. Poles have learned Thatcher's buddy system well, er, well, the politicians at least, lining up to sacrifice lives and zloty to the alter of American military hegemony. Polish may have recently become England's second language but Polish politicians speak Anglo-Saxon ass-kissing as good as any lapdog. Most Poles are oblivious to the fact they ranked number four on the 'coalition of the willing' casualty countdown and just last month saw their 39th soldier killed in Afghanistan, while four more stand trial for war crimes committed there. Meanwhile the billions to be spent on a useless missile shield that the majority of the people don't want will piss off the Russians and definitely won't end up in the pockets of the locals.

"Non-stop distractions of the most fascinating nature...are deliberately used as instruments of policy, for the purpose of preventing people from paying too much attention to the realities of the social and political situation."
- Aldous Huxley, Brave New World

Thanks to doublethink, the lady wasn't for turning and probably believed in what she was doing but the real trick was to convince not just the people but her own party of the myth that Thatcherism was good for 'ordinary' people and would emancipate the working classes. Attila the Hen found an ally in Rupert Murdoch; she helped him consolidate his media power while he helped her spread the gospel and get reelected twice. The two protestant 'outsiders' who attended Oxford railed against the establishment which they became a part of by helping each other; he by having his tabloid the Sun shift its traditional support for Labour to Thatcher's Tories with a front page editorial arguing Thatcher’s election would be better for the working classes, she by allowing his acquisition of The Times and Sunday Times to avoid scrutiny by the competition authorities thanks to a deal struck during lunch at Chequers. While Thatcherism was tearing the heart out of the industrial heartland and looting the commons to hand it over to a tiny elite of 'wealth creators' who would free up the market and rain wealth on the land, Murdoch helped make sure there would be astonishingly little protest or consciousness by blaming the poor, promoting war and of course giving the people want they really wanted, more football.

The strength of ignorance is both easily built and desperately needed here in Poland. Caught so often on the wrong side of history and geography, convincing the Poles that there is no alternative to the current course has been an easy sell. Football, vodka and the Catholic Church allow the people to imagine they'll get to a better place as long as they keep their head down and work hard. Sure, they have the right complain and the array of choices seems as diverse as anywhere but the media landscape ensures the discourse never strays far off course. German companies like Axel Springer AG spew IngSoc, er, tabloid trash and EU propaganda with their version of the Sun, Fakt, alongside Dziennik and Newsweek Polska, American movies continually revise the past while TV portrays seemingly  possible present from the west or a poor simulation thereof and Radio Maryja spews xenophobic hate cloaked in the hope of redemption. The closest Poland comes to Murdoch is Adam Michnik, editor of the ofttimes leading national daily Gazeta Wyborca who somehow managed the trick of undergoing a conversion from a fearless dissident into a hack propagandist heralding the evils of Islamofascism and convincing women to go shopping on cobblestone streets wearing high heels (er, a forced reference to his paper's women's magazine Wysokie Obcasy - High Heels)

Maggie may or may not have been instrumental in delivering Poland and Eastern Europe from the Soviet Union but it was her amazing electoral success along with that of fellow cold war warrior Rotten Ronnie on the other side of the pond that sped the demise of democracy as we knew it. Yes, the unions they broke had too much influence on Labour and Democrat policy and no, it wasn't her or Raygun's fault those parties ran into the arms of Big Finance but there you are. Poland et al had the misfortune of gaining freedom just as the end of history arrived and democracy became nothing but a choice between  more or less measures of neocon and neoliberal, a lesser of two evil song and dance, a recipe repeated around the world from Ottawa to Warsaw. When asked about her greatest achievement, Thatcher simply replied, "New Labour" and Tony Blair. In Poland the answer would be the ruling Platforma Obywatelska (Civic Platform) and the likes of Oxford educated, husband of Washington Post hack Anne Applebaum, current foreign minister Radek Sikorski (not only did he write this drivel after Thather's death he called for a statue to be erected here in her honour, maybe right next to Reagan's in Warsaw!). Politics have become subordinate to markets and labour to capital, society now serves the economy instead of the other way around.

"All for ourselves, and nothing for other people, seems, in every age of the world, to have been the vile maxim of the masters of mankind."
- Adam Smith, An Inquiry Into the Nature and Causes of the Wealth of Nations

It's this last point which is probably the most important connection between Thatcher and life here in Poland, freedom is slavery. Sparked by the Powell Memo in 1971 and lent an aura of intellectual legitimacy by the Chicago Boys, a new economic ideology was propagated through institutional sponsorship: America has the Heritage Foundation, the Cato Institute and the American Enterprise Institute while the UK's versions include the Adam Smith Institute, the Institute of Economic Affairs and the Centre for Policy Studies founded in 1974 by Thatcher's mentor, Keith Joseph. Despite their benign sounding names, these are radical think tanks with almost nothing to do with the likes of Adam Smith who understood something about Moral Sentiments and the dangers of private monopolies and everything to do with Hayek, Friedman and Rand and their belief in extreme individualism or social Darwinism. Nigel Lawsen, Thatcher's Chancellor of the Exchequer from '83 to '89 summarized their economic philosophy, "Economic planning was both impossible and unnecessary. . . . The price mechanism . . . was a much more efficient means of transmitting consumer wants and needs than the vast bureaucracies of Whitehall and the nationalized industries." Selfishness along with ostentation of power and status was in. Culture was ruled over by money, and the idea that those who win by making more of it do so because they are better was not just permitted but ordained.

Profit and capitalism were good while planning, government and taxes were bad. Conveniently this all worked together as in order to lower taxes, public spending had to be lowered which scaled back government by reducing public services, privatizing whatever was possible and deregulating the rest. Inconveniently most voters viewed the government as subsidizing essential public services, ensuring economic security and helping families in need. The trick therefore was to create a backlash against government waste, resentment against public subsidies to those who were less hard working than themselves and place the blame for inflation on greedy unions. Notice the success as the issue of benefit fraud, which costs the UK about £1.2 billion yearly is a far more emotive topic than tax avoidance, which costs about £70 billion a year. Voters also needed to be convinced that what was taken from the state was being given to them thus enhancing individual economic freedom and unshackling the wealth creators, allowing the wealth to trickle down on everyone. The only valid idealism was to destroy the state by, as Lawson continued, "elevating private actions above public direction and dismissing ‘social justice’ as both vague and arbitrary." Finding bad reasons for what one believes for other bad reasons - that's philosophy.

Thatcher was swept into power on a perfect storm of global inflation emanating from the US pushing up world prices, IMF imposed austerity in exchange for loans to support the value of sterling after Britain's 1976 foreign exchange crisis which made it impossible to finance the modernization of public industries as it would increase the PSBR (Public Sector Borrowing Requirement), and finally, well, strikes and weather, otherwise known as Britain's Winter of Discontent. Yes, a public sector strike during an unusually cold winter ground the country to a halt, literally, as roads went unsalted, hospital patients were denied treatment and garbage piled up in the streets. Labour, who had tied themselves to those striking unions, found themselves with their hands also tied behind their back. Thatcher picked and chose her battles with labour wisely and pursued a step-by-step program of trade union reform before ultimately crushing them in the '84-'85 coal miners' strike. There was indeed no alternative to the monetarist Thatcherism which created an employers' market by imposing chronic under-employment and shifting enterprise out of the unionized public sector to newly privatized, non-unionized enterprises; Marks and Spencer had triumphed over Marx and Engels.

Ironically, or perhaps just calculatingly mercenary, while destroying unions and solidarity at home she was lionized by Solidarność (Solidarity) in Poland, actually being mobbed by dockworkers in Gdynia when she visited in 1988. If you've gotten this far in reading it hopefully means you realize I understand there was a difference between unions in the UK and Poland, after all, in Poland the military used to shoot striking miners dead. Given the trade unions' role in the democratization of Poland it is curious that Poland today has among the lowest unionization rates in Europe as from 1982 until 2005 membership fell from 80% to below 14% (only  2.4% for employees under the age of 25). There are myriad of factors at play here, from the many mistakes made by the unions themselves, a massive shift of the workforce from traditional industries and sectors such as mining and steel, and the privatization of many formerly public, union dominated industries, but it was the pernicious effects of Thatcherism on human psychology that seem the greatest factors. The transformation of the full-employment ideals of post-WWII society to an economic system based on chronic un- and underemployment has made many afraid of forming or joining a union along with the societal appeal to the narrowest self-interest of individuals having gained the upper hand over the feeling of brotherhood and the desire to work for the collective good.

Thatcherism also slowly shifted the balance of power from labour to capital through tax and monetary policy, privatization and deregulation. She managed to destroy more than 2 million jobs in two years, an astonishing figure considering unemployment only breached 1 million in 1978 before reaching 3.5 million by 1983. Her monetarism lowered everyone's taxes a bit and 'simplified' the fiscal system by regressively shifting taxes away from wealth onto consumers via sales taxes, excise taxes and the value-added tax. With public institutions being starved by austerity, privatization was the only way to modernize. "Popular capitalism", spreading ownership as widely as possible, would serve the double purpose of making it difficult to re-nationalize in the future plus giving the public skin in the game, giving workers a stake in preserving the value of the shares they held in these enterprises. The discipline of the market would make British industry more competitive but its effect along with deregulation of the financial industry, the 'Right to Buy' scheme of 1980 and the 'Big Bang' of 1986 simply handed over complete control of the British economy to the square mile in the heart of London, the City.

Privatization, which started tentatively in her first term with British Aerospace and Cable & Wireless, had reached fever pitch by her second reelection: Jaguar, British Telecom, Britoil, British Gas, British Steel, British Petroleum, Rolls Royce, British Airways. Her fourth term (well, John Major's first) saw British Rail hit the auction block. By the time the Conservatives were voted out of office in 1997 by one of the largest margins in history it had become clear to the public that there were some side-effects to the medicine they were being forced to take. Prices hadn't declined along with productivity gains in some areas while they had jumped for essential services like water whose systems were breaking down or shifted against residential consumers in favor of large industrial users in the case of electricity. Services had been cut back, privatized companies were engaging in monopoly practices and to add insult to injury economic inequality had widened with the shrinkage in the industrial labor force and stagnating real wages while profits soared for the privatized companies and the City fleeced the government for underwriting fees and began gambling in earnest thanks to the newfound market freedom. Thatchers reply? "Let us glory in our inequality."

"Democracy is the theory that the common people know what they want, and deserve to get it good and hard."
- H.L. Mencken, A Little Book in C Major

Pity the Poles for having gained their freedom at the height of Thatcherism, imagine how different the future would look had it been in, say, 1968? As it was, having been tried and tested by Thatcher's buddy Pinochet in Chile, the Chicago Boys idea of "Shock Therapy" came to Poland in the person of Leszek Balcerowicz in 1989 under the guidance of Harvard's Jeffery Sachs backed by the muscle of the IMF. Doubtless, drastic measures were called for to make the huge transition that was complicated by the fact Poland was an economic basket case, with debt of $40 billion and inflation running at 600%. Also doubtless, the Balcerowicz plan was a success when compared to the results achieved in some other Eastern bloc nations. Forgotten though is the doublethink trick achieved of forcing a now 'free' democratic nation to trade off part of the debts incurred by a totalitarian regime it had never voted for in return for selling off state assets at discount prices for the benefit of foreigners and those highly place communists who were quick enough to convert to the new religion. Who cares if it was completely undemocratic, Balcerowicz termed it "extraordinary politics" while Michnik warned that the common people or "rank and file...irrational hotheads [were] incapable of recognizing the limits and realities of the real world". Those in position to do so stripped all the assets they could, a $1 billion stabilization loan (aren't numbers from the olden days quaint?) was arranged, large blocks of shares of privatized assets were placed in the hands of banks and Poland was absorbed into the global slavery debt trap.

The only goal of the IMF/Sachs/Balcerowicz policies was to ensure payments continued to flow west on the $40 billion in illegitimate foreign hard currency debt (what would be called odious debt today). Much of that debt had been incurred in 1979 when rates in London and New York increased 300% under the policies of, you guessed it, Margaret Thatcher and US Fed Chairman Paul Volcker. By the end of '91, Polish unemployment had reached 2 million, industrial production was 66% of the '89 level at the end of '92 and as 1993 closed 2.8 million were unemployed and 50% of families with 3 or more children were living below the poverty line. Little wonder that elections held in September of 1993 saw the the pro-IMF government of Hanna Suchocka replaced by a raft of coalition parties with direct ties to the communist regime. Predictably, as inequality elsewhere surpasses levels unseen since the roaring '20s, the new grand bourgeoisie that has emerged here has combined old bureaucrats, new managers and a burgeoning entrepreneurial class; a situation reminiscent of Poland in the 1920s. Perhaps the best symbols of what Poland got in return for the misery, organized crime, and debt-based slavery brought by the 'reforms' are Galeria Mokotów (Mokotów Mall) in Warsaw and Stary Browar (Old Brewery). The former, a shopping center built in place of a demolished semiconductor factory, cuz, you know, who needs those in a modern economy when you can create another black hole to suck wealth out of the local economy, and the latter a mall built on bribery (Polish link) and murder involving the richest man in Poland.

"The law, in its majestic equality, forbids the rich and the poor alike to sleep under bridges, to beg in the streets, and to steal bread."
- Anatole France, Le Lys Rouge (The Red Lilly)

Ah yes, the riches and glory promised to Poland are coming but as in the rest of the world more and more disproportionately to those at the top of the income scale. It would take a figure  stronger than Thatcher to convince Poles they are on the wrong course though as they are pumped through the indoctrination centers that are the education system. They emerge believing they have free will and as unquestioning of the free-market god as their forefathers were in the Catholic one unaware that one believes things because one has been conditioned to believe them; soma is simply Christianity without tears. The trains are slow, late and chaotic not because they're being sold off piecemeal on EU orders which is creating the disarray, but because it's not fully privatized like the UK's, who cares about their disastrous experience. The long waits at NFZ have nothing to do with it being underfunded, the public health care system isn't a blessing but a curse as promoting preventative medicine instead of the Americanized version of health for profit resulting in worse health outcomes and higher costs must be better as it's the path the Cameron government is choosing as they privatize the NHS by stealth. Oh, and don't worry Polish kids, it's only a matter of time until the course laid in leads to a completely privatized American-style college system of trillion dollar debt slavery before you've even entered the workforce. Just ask any 20-year-old Brit what it's like

Would the UK and Poland be much different if Thatcher had never been? Maybe not seeing as even the EU, the institution that most separates Maggie and Poland, has become nothing more than a glorified debt collector/pusher a fact not lost on most Poles as they become more disenchanted with the concept as their democracy ages just as Thatcher did. Even the Iron Lady, as she mentions in her autobiography, was caught off guard at how much she came to rely on the financial manipulators, how little she was able to control them and the scale of those bankers' greed; she convinced us to sell the family silver for the benefit of the rentiers who perceived the Thatchers and Friedmans as pawns, well-meaning promoters wrapping austerity economics in populist garb. Unfortunately, the deleterious social effects of the inequality caused by growing GDP through financialization of the economy, empowering those banks and other corporations to pursue profit without paying the price for wrongdoing and turning people into consumer zombies takes years to measure and decades to be felt. Trillions in wealth will continue to by siphoned out of the productive economy while we are forced to run faster and faster just to keep up and are convinced that our phone has somehow made us smarter. Yet while there is always time to get off the tracks before the train hits there's not much chance of heeding the warning the more we come to rely on those who profit from us being run over.