Posts Tagged ‘bailouts’

The People Against America

Al Jazeera (2017)

Film Review

This documentary traces the rise of the “white rights” movement that elected Donald Trump. This movement, of mainly white blue collar males, promotes the distorted image of white people as a disenfranchised minority. According to the filmmakers, it has its roots in Goldwater’s 1964 presidential campaign. By heavily emphasizing “states rights,” Goldwater successfully exploited the anxieties of Southerners over forced integration by the federal government. It would be the first time Southern states had voted Republican since the Civil War.

Nixon’s Southern Strategy

In 1968, the Nixon campaign built on Goldwater’s success by implementing a formal “southern strategy.” By reaching out to the “silent majority,” and emphasizing law and order in the face of race riots and anti-war protests, his campaign sought to win the votes of northern blue collar voters. In subsequent elections, Democratic Party strategists would seek to win back blue collar voters by recruiting two conservative governors to run for president (Carter and Clinton).

As the Watergate scandal undermined all Americans’ confidence in government, corporate oligarchs would build on growing anti-government sentiment by massively funding right wing think tanks, lobbying and conservative talk radio. This, in turn would lay the groundwork for Reagan’s 1980 massive deregulation and tax and public service cuts.

Corporate Giveaways By Clinton and Obama

When Clinton was elected in 1992, he quickly surpassed Reagan’s record of corporate giveaways, with his total deregulation of Wall Street, his Three Strikes and Omnibus Crime Bill (leading to mass incarceration of minorities) and his creation of the North American Free Trade Act (NAFTA) and the World Trade Organization (WTO). These free trade treaties resulted in the wholesale export of rust belt industries to Mexico and China, effectively ending any incentive for working class males to vote Democratic.

Obama, elected on the back of the 2008 financial collapse, would prove even more pro-corporate than Clinton or Bush. Instead of prosecuting the banks who caused the 2008 economic crash, he granted them massive bailouts, while ignoring the plight of millions of homeowners who lost their homes when these banks foreclosed on them. He also significantly increasing mass surveillance and aggressively prosecuting whistleblowers. He also effectively repealed posse comitatus* and habeus corpus.**

The Rise of Occupy and the Tea Party

Obama’s pro-corporate policies led to the rise of both left wing (Occupy Wall Street) and right wing (Tea Party) popular movements. The latter received major corporate backing (largely from the Koch brothers), enabling Tea Party Republicans to shift the blame for the loss of good paying industrial jobs from Wall Street to minorities, immigrants and women.

Is the US Moving to the Right?

For me, the highlight of the documentary is  commentary by former Black Panther Party president Elaine Brown, the only activist featured. Brown, who is highly critical of the left’s failure to acknowledge the problems of poor white people, is the only commentator to dispute that the US is “moving to the right.” She points out that prior Republican campaigns used coded language (such as “state rights,” “law and order”) to target racist fears of blue collar whites. Trump, in contrast, openly caters to these sentiments. Brown reports that some blacks welcome the end of political hypocrisy and greater openness about the pervasiveness of white racism.

She believes this new openness offers a good opportunity to build a genuine multiracial working class movement. She gives the example of successful collaboration in Chicago between black activists and the Young Patriots (a white separatist group) against corrupt landlords.


*The Posse Comitatus Act, enacted in 1878, prohibited the use of federal troops to enforce domestic policies within the US.

**The right of Habeus Corpus, guaranteed under Article I of the Constitution and the Fifth Amendment of the Bill of Rights, prevents government from illegal detaining US citizens without charging them.

 

Buy, Buy Europe

Pieter De Vos (2013)

Film Review

This is a five-part miniseries describing how European banks have hijacked the euro monetary union to vastly increase their wealth. The upcoming Brexit vote in Britain makes this a particularly relevant topic.

Part 1 A Bank Crisis a Week

The series begins by describing the history of the European monetary union. Built at the height of neoliberalism it adopted all the rhetoric of Ronald Reagan, Margaret Thatcher and Alan Greenspan promising that globalized capitalism and free markets would end economic crises, increase prosperity and end inequality.

What really happened is that creating the euro massively increased inequality between northern and southern Europe and between workers and the super rich.

In seeking to make European banks as strong and competitive as US and British banks, Eurozone leaders ceased regulating them. Wall Street is often blamed for the EU’s 2008 meltdown. In actuality, deregulated European banks were equally guilty of risky speculation in derivatives and subprime mortgages.

Following the 2008 economic crash, European banks required massive government bailouts to keep European economies from collapsing. Promised banking reforms to prevent a recurrence of 2008 never happened. And according to the IMF, the global banking system is even more unstable today as it was right before the meltdown.

Part 2 Austerity Till the Grave

The bailouts required to keep their banks (and economies) going virtually bankrupted all Eurozone governments. All borrowed deeply (from the global banking system they had just bailed out) to keep their governments going. As a condition of this borrowing, the banks required them to reduce their deficits via deep austerity cuts. To qualify for further loans, they all cut pensions and benefits and laid off public service workers.

This segment focuses on Spain, where workers are organizing to block evictions, and Greece, where unemployed parents are forced to drop their kids off at orphanages because they can’t get welfare benefits to support them.

Part 3 Tax Haven Europe

This segment begins by profiling the Greek shipping magnates who run the largest merchant fleet in the world and pay virtually no tax. Corporations and the super rich pay far less tax than working people in all the EU countries. This massive tax avoidance forces all European governments to acquire major debt to keep from collapsing.

The documentary offers the example of Belgium, where the average tax rate is 12.5% and the most profitable corporations pay only 5% of their earnings in tax.

The filmmakers maintain that workers create wealth, though I doubt most neoliberals would see it that way. In 1981 Europe, 74% of the wealth workers created was returned to them as wages and government benefits. By 2012 only 49% of this wealth was returned to them and the super rich claimed the rest.

Part 4 Bratwurst, Lederhosen and Minijobs.

This was the most eye-open segment for me. It exposes the punitive conditions imposed on German workers from 2000 with the goal of making German export industries more competitive. Under former chancellor Gerhart Schroeder, massive wage reductions were imposed on all German workers – something IMF chief Christine LaGarde likes to call “labor market reform.”

Among other labor “reforms,” were a massive increase in “minijobs” – low wage part-time temporary positions that pay an average of 400 ($US 448) euros a month. Given Germany’s high cost of living, both parents need to work 2-3 “minijobs” (if they can find them) to cover a family’s basic needs.

The result was truckloads of cheap German imports flooding into southern EU countries (Greece, Spain, Portugal and Italy), shutting down local industries that couldn’t compete.

In this way, Germany’s vicious attack on their own workers forced wages down in other EU countries. This, in turn, forced countries like Greece and Spain to borrow lots of money from German banks to keep their governments going.

Ironically Germany currently has the highest number of working poor (7 million) of all EU countries.

Part 5 What Kind of Europe Do We Want?

It’s vital for people to understand that the mantra EU governments repeat ad nauseum – that saving the euro is essential to strengthening the EU and restoring prosperity – is pure propaganda. Seven years of austerity is massively increasing deficits and debt by putting so many people out of work.

The truth is that the Eurozone has been hijacked by banks and multinational corporations who are determined to use trade agreements to lock member countries into austerity and statutory destruction of Europe’s proud tradition of democratic socialism.

The only solution is a public takeover of too-big-to fail banks. Continuing to bail them out, while allowing them to privatize all the profits, is simply legalized theft of public monies. And a yes vote on Brexit.