War on the Environment
U.S. Arab Disconnect
Edward S. Herman
Billionaire Phillip Anschutz
GAY & LESBIAN COMMUNITY NOTES
The San Jose Project
Labor Must Play Its Wild Card
Obama's Jobs Proposal
Court Allows U.S. Citizens to Sue Rumsfeld
The Filthy RIch
"Soft Power" in the Middle East
The World of Drones
NOTE: Z Magazine subscribers and sustainers have access to all Z Magazine articles here and in the archive. The latest Z Magazine articles available to everyone are listed in the Free Articles box at the top of the table of contents, and are starred in the list below. Questions? e-mail Z Magazine Online.
The Filthy Rich
Mass Ignorance and the Mythology That Protects the Wealthy
A recent broadcast on the “Public” Broadcasting System’s “News Hour” reported some chilling news on American life. The top 20 percent of Americans, it turns out, owns 84 percent of the nation’s wealth. That leaves 4 out of 5 Americans to fight it out for little more than a sixth of the nation’s net worth. Most in the nation’s bottom 40 percent are getting pummeled in that battle with only 0.3 percent of the nation’s wealth, basically nothing.
The PBS story, titled “Land of the Free, Home of the Poor” (aired August 16, 2011) may have understated the wealth mal-distribution problem. As of 2007, the leading wealth and power analyst, G. William Domhoff, notes that the top 1 percent owned more than a third (34 percent) of the nation’s privately held wealth. Worse, the top hundredth owns 43 percent of the nation’s financial net worth, including 38.3 percent of all privately held stock, 60.6 percent of financial securities, and 62 percent of business equity. The top 10 percent have 90 percent of stocks, bonds, trust funds, business equity and more than three-fourths of non-home real estate. “Since financial wealth is what counts as far as the control of income-producing assets,” Domhoff notes, “we can say that just 10% of the people own the
But the really super-rich are found in the top thousandth, not the elite hundredth. In 2007, the top thousandth received 6 percent of all
Last year, by stark contrast, the U.S. Census Bureau reported that the quantity of Americans living in poverty in the
Pavé Rings for the Rich
This wealth and power pyramid has certainly become steeper and its poverty base wider since 2007, thanks to the Great Recession that began at the end of that year. The collapse of home values beginning in 2006 and the epidemic of foreclosures has particularly hurt the net worth of the middle and working classes, whose net worth is far more tied up in home ownership than in financial assets when compared to the rich. From 2005 to 2009, a recent Pew Research Center study shows, inflation-adjusted median wealth plunged two-thirds among Hispanic households and 53 percent among black households, compared with just 16 percent for white households, leading to an expansion of the black-white median household wealth gap to 5 black cents on the white dollar. Millions have been thrown out of work, feeding extreme poverty across the land.
A New York Times article last August reported that the rich and super rich have fully resumed their ways of conspicuous and opulent luxury consumption. “Even Marked Up,” the headline runs, “Luxury Goods Fly Off Shelves.” Further: “Nordstrom has a waiting list for a Chanel sequined tweed coat with a $9,010 price. Neiman Marcus has sold out in almost every size of Christian Louboutin ‘Bianca’ platform pumps, at $775 a pair. Mercedes-Benz said it sold more cars last month in the
The Times noted that, “the success luxury retailers are having in selling $250 Ermenegildo Zegna ties and $2,800 David Yurman pavé rings—the kind encircled with small precious stones—[stood] in stark contrast to the retailers who cater to more average Americans.… Apparel stores are holding near fire sales to get people to spend. Wal-Mart is selling smaller packages because some shoppers do not have enough cash on hand to afford multipacks of toilet paper” (NYT, August 3, 2011).
Wealth is Power
Morally problematic in and of itself, such extreme inequality makes functioning democracy impossible. Domhoff explains: “Wealth can be seen as a ‘resource’ that is very useful in exercising power. That’s obvious when we think of donations to political parties, payments to lobbyists, and grants to experts who are employed to think up new policies beneficial to the wealthy. Wealth also can be useful in shaping the general social environment to the benefit of the wealthy, whether through hiring public relations firms or donating money for universities, museums, music halls, and art galleries…certain kinds of wealth, such as stock ownership, can be used to control corporations, which of course have a major impact on how the society functions...[and] just as wealth can lead to power, so too can power lead to wealth. Those who control a government can use their position to feather their own nests, whether that means a favorable land deal for relatives at the local level or a huge federal government contract for a new corporation run by friends who will hire you when you leave government” (G.W. Domhoff, whorulesamerica.net). Domhoff could have added media ownership, a critical, reality-framing, populace-deadening, and mass-“consent-manufacturing” asset of the rich.
When these processes of top-down domination are seen against the background of extreme wealth concentration in the U.S., the shocking disconnect between majority progressive public opinion on numerous key policy issues and the regressive plutocratic reality of actual policy on those and other issues becomes less than mysterious. So what if most Americans think that the ideal wealth distribution should be far more egalitarian than what actually exists? As business professor Michael Norton and psychologist Dan Ariely show in a recent study, most Americans think that ideal distribution would be one in which the top 20 percent owned between 30 and 40 percent of the privately held wealth and the bottom 40 percent had between 25 and 30 percent (Norton and Ariely, “Building a Better America One Wealth Quintile at a Time,” Perspectives on Psychological Science, 2010).
None of this sort of longstanding majority progressive opinion ever seems to matter in the
How and why are such astonishing disparities tolerated in the
It’s hard to be angry about a problem you don’t know exists. Here we confront a viciously circular fact of ruling class power. The top 1 percent owns the major media that millions rely on for information about the world they inhabit. The wealthy few are hardly eager to see the citizenry accurately informed about the distribution of wealth and, hence, power in the
“They Earned It”
Manufactured mass ignorance aside, plutocrats still fall back on powerful myths to justify
This longstanding fable of the elite is so full of holes it is hard to know where to begin in tearing it apart. In terms of the egregious negative consequences wealth inequality holds for democracy and social experience more broadly, it is neither here nor there whether or not the rich worked hard or well for their wealth. It is very much “our business” what they do or don’t do with their fortunes.
In fact, the wealthy classes are loaded with people who are rich, independent of any special effort or skill on their part due to the simple fact of inheritance. The passing on of net worth and connections and other benefits across generations covers up the stupidity, decrepitude, and/or laziness of many rich people and offers stupendous advantages to more able and/or energetic elites who profit from the fact that success in the “free market” of the present and future depends significantly on how much accumulated capital you bring to that market from the past. Bad behavior and poor skills have little negative economic impact on those born into wealth; they stay rich regardless, just as most born into the lower and working classes remain there regardless of how hard, honestly, and skillfully they toil.
Even in cases of remarkable first-generation ascendancy into the wealthy elite (without the benefit of big inheritances), the notion that the rich “earn” their fortunes on their own is false. As the
Our Sufferance is a Gain to Them
But the wealthy do not simply benefit from society; they accumulate fortunes at the expense of it. They profit from:
- mass unemployment’s depressive impact on wages, which cuts their labor costs
- regressive tax cuts and loopholes, which increase with wealth while shutting down social services for the poor
- the cutting and undermining of environment regulations, which reduce their business costs while spoiling livable ecology
- wars and giant military budgets that feed the bottom lines of the “defense” corporations they own while killing and crippling millions and stealing money from potential investment in social uplift
- a hyper-commercialized mass consumer culture that despoils the environment while reducing human worth to exchange value and destroying peoples’ capacity for critical thought
- deals with corrupt dictators who provide natural resources at cheap prices while depressing wages and crushing democracy in “developing countries”
- the closing down of livable wage jobs in the
and the export of employment to repressive and low-wage peripheries U.S.
- a health care system that privileges the profits of giant insurance and drug companies over the well being of ordinary people
exorbitant credit card interest rates that lead to millions of bankruptcies each year
- predatory lending practices that spread and perpetuate poverty and foreclosure
- agricultural and trade practices that destroy sustainable local and regional food cultivation and distribution practices at home and abroad
- the imposition of overly long working hours that keep employee compensation levels down while helping maintain a large number of unemployed workers
- exorbitant public business subsidies and taxpayer incentives and bailouts to the rich at the expense of the rest
The list goes on and on. As the left political scientist David McNally notes, profits have been restored in the wake of the 2008 financial crisis “largely because working class people have paid for them, through layoffs, wage cuts, reduced work hours, and the decimation of social services. The rich are capitalists, for the most part, and under the modern marketplace and corporate capitalism—generator of contemporary fortunes—the wealth of the few is related to the comparative impoverishment of the many. Indeed, the exploitation of the latter by the former is the essence of what passes for reasonable and normal economic activity under the standard rules of the capitalist system. Most of us engage with the market (primarily by renting out our core human capacity for work to more privileged others) to survive, to purchase simple use values that make life possible. Capitalists are very different. They care about nothing but exchange value and profit and engage the market to exploit the world and its people. There would be no point in their investments without exploitation. There would be no point in paying wages and salaries without surplus value—extra labor value going to them beyond the commodity price of our labor power. When profit and its critical ingredient surplus value are deemed unattainable, they toss us into the gutter where, as members of the reserve army of labor, we help them bid down the commodity value of the labor.
Trickle Down Mythology
A second great fable holds that making rich people richer makes the rest of us richer. It’s called “trickle down economics.” It is rich people, the argument runs, who smell out market opportunities and exploit them in ways that create wealth for the rest of us. Like it or not, poor people can become more well off in the long run only by making the already opulent yet filthier rich. When you give the wealthy a bigger share of the pie, the pieces given to others shrink in the short term. In the long run, the poor get bigger absolute slices because the rich expand the size of the pie through investment of the wealth granted them by policymakers who understand that “populist” taxation of the rich to spread the wealth more equitably is “dysfunctional”—a drag on economic expansion.
As the liberal Cambridge (UK) economist Ha Joon Chang notes in his bestselling book 23 Things They Don’t Tell You About Capitalism (2010), recent economic history does not support the “trickle down” thesis. “Despite the usual dichotomy of ‘growth-enhancing pro-rich policy’ and ‘growth-reducing pro-poor policy,’” Chang writes, “pro-rich policies have failed to accelerate growth in the last three decades.” Thirty-plus years of “free market” policies that have given the rich an ever larger slice of wealth and income have only generated slow growth (the world economy’s growth rate fell from more than 3 percent in the Keynesian 1960s and 1970s to 1.4 percent in the neoliberal, “free market” years since 1980) and persistent high levels of structural unemployment within and beyond the rich nations.
“Trickle down” leading to increased jobs does not happen without the intervention of public mechanisms and institutions to compel the rich to take their increased wealth and invest in job-creating activities—mechanisms that have been assaulted and undermined by concentrated wealth and its political agents in the neoliberal era. Without such mechanisms there is nothing to prevent the rich from spending on their luxury “needs” and using their surplus in other ways that do nothing to create jobs. As numerous media reported after Barack Obama agreed to extend George W. Bush’s deficit-fueling tax cuts for the rich last January, many leading
Some big American firms have shown higher profits because their competition has faded. Following the financial collapse of 2008, for example, the financial giants Goldman Sachs and Morgan Chase no longer have to compete with Bear Stearns, Lehman Bros., and Merrill Lynch. Many jobs disappeared with the collapse of the defeated behemoths, of course.
And then there’s the simple fact that a large reserve army of unemployed workers is a great profit boon to corporate
Sharing wealth and income more equitably would do more to create employment. “In an economic downturn,” Chang notes, “the best way to boost the economy is to redistribute wealth downward, as poorer people tend to spend a higher portion of their incomes. The economy-boosting effect of the extra billion dollars given to the lower-income households through increased welfare spending will be bigger than the same amount given to the rich through tax cuts.” Give ordinary folks more money and they quickly buy necessities, stimulating the economy. Extra money for the rich funds numerous activities that have little stimulus effect and some that are quite contrary to the growth and wages promised: the purchase of back-stocked luxuries, mergers and acquisitions that actually cut jobs, storage of surplus wealth in off-shore tax havens, the hiring of management consultants who advise on how to shrink payrolls and eliminate unions; the hiring of lobbyists who push for cutting public sector programs, jobs, and unions; the hording of cash reserves; the purchase of sophisticated financial instruments that cannibalize the economy; and numerous other forms of parasitism that “mark profits without hiring anyone.”
The Growth Sedative
Chang is empirically correct, but his critique of trickle-down mythology is too kind to the rich. In Chang’s 23 Things, modern “free market” or neoliberal capitalism’s greatest crime is not its role in furthering capitalism’s inherent tendency towards inequality and concentration of wealth, but rather its role in slowing growth. But growth has long been western capitalism’s false and environmentally (some would add spiritually) lethal “solution” for the inequality that capitalism creates.
“A rising tide lifts all boats,” the conventional western growth ideology proclaims, supposedly rendering irrelevant popular anger over the fact that an opulent minority sails in luxurious yachts while millions struggle on rickety dinghies and in leaking rowboats. As the liberal economist Henry Wallich explained in 1972, “Growth is a substitute for equality of income. So long as there is growth there is hope, and that makes large income differentials tolerable.” (As a Federal Reserve governor, Wallich was defending western capitalism against ecological economists who warned about the environmental limits of unchecked growth.) “Governments love growth,” British environmental writer and activist George Monbiot noted in the fall of 2007, “because it excuses them from dealing with inequality…. Growth is a political sedative, snuffing out protest, permitting governments to avoid confrontation with the rich, preventing the construction of a just and sustainable economy.” As Le Monde’s ecological editor Herve Kempf noted four years ago, “the oligarchy” sees “the pursuit of material growth” as “the solution to the social crisis,” the “sole means of fighting poverty and unemployment,” and the “only means of getting societies to accept extreme inequalities without questioning them.” When growth stops, William Grieder notes, “the political system loses its cover. The safety valve is off. The comforting mythology about growth loses its power to distract the public from anger and to discourage critical inquiry into how the system actually functions.”
The Rich We Cannot Always Have With Us
The pressure on business and political elites to keep the safety valve on—the secret behind the growth attachment that has snared even a clever economic critic like Chang—comes at an unsustainable price, setting up a devil’s choice between jobs and income for proletarianized masses on one hand and livable ecology for humanity (and other living things) on the other hand. The wealthy few’s reliance on growth to cloak inequality and keep “populist” sentiments at bay is at the heart of, to use the title of Kempf’s most recent book, How The Rich Are Destroying the Earth. The ruination of livable ecology seems to be nothing less than an “institutional imperative” (
As the current, ever-deepening ecological catastrophe should tell us, humanity is running out of time when it comes to carrying the rich and failing to seriously confront its dominant institutions and ideologies. The rich themselves do not need to be liquidated and distributed across society, but their wealth and power do if humanity is going to enjoy a decent, democratic, and desirable future on this glorious but far from endlessly forgiving planet we all inhabit.
Paul Street is the author of numerous books, including Empire and Inequality: America and the World Since 9/11 (Paradigm, 2004), The Empire’s New Clothes: Barack Obama in the Real World of Power (Paradigm, 2010), and (co-authored with Anthony DiMaggio) Crashing the Tea Party: Mass Media and the Campaign to Remake American Politics (Paradigm, 2011).
Z Magazine Archive
HUMAN RIGHTS - The U.S. Human Rights Network will celebrate its 10th anniversary with the Advancing Human Rights 2013 Conference, December 6-8, in Atlanta, GA.
Contact: 250 Georgia Avenue SE, Suite 330, Atlanta, GA 30312; email@example.com; http:// www.ushrnetwork.org/.
AFRICAN/SOCIALIST - The Sixth Congress of the African People’s Socialist Party USA will be held December 7-11, in St. Petersburg, FL.
Contact: 1245 18th Avenue South, St. Petersburg, FL 33705; 727- 821-6620; info@aps puhuru.org; http://asiuhuru.org/.
SCHOOLS - The Dignity in Schools Campaign (DSC) will host a workshop on the DSC “Model Code on Education and Dignity: Presenting A Human Rights Framework for Schools” at the Mid-Hudson Region NY State Leadership Summit on School Justice Partnerships, December 11 in White Plains, NY.
Contact: http://www.dignityin schools.org/.
ANARCHIST/BOOKFAIR - The Humboldt Anarchist Book Fair will be held December 14, in Eureka, CA.
Contact: humboldtgrassroots @riseup.net; http://humbold tanarchist bookfair.wordpress. com/.
CLIMATE - The World Symposium on Sustainable Development at Universities is hosting a follow-up event to the 2012 Rio de Janeiro symposium. The gathering will be held in Qatar on January 28-30, 2014.
Contact: http://environment.tufts. edu/.
LABOR - The United Association for Labor Education (UALE) will host Organizing for Power: A New Labor Movement for the New Working Class in Los Angeles, March 26-29. Proposals are due December 15.
Contact: LAWCHA, 226 Carr Building (East Campus), Box 90719, Duke University, Durham, NC 27708-0719;lawcha @duke. edu; http://lawcha.org/.
MEDIA FELLOWSHIP - The Media Mobilizing Project is seeking applicants for the first annual Movement Media Fellowship Program. The Fellow will work with MMP to produce the spring season of Media Mobilizing Project TV. MMPTV is a news and talk show that tells the stories of local communities organizing to win human rights and build a movement to end poverty.
Contact: 4233 Chestnut St., Philadelphia, PA 19104; 215-821- 9632; milena@media mobilizing.org; http://www.media mobilizing.org/.
RACE - The 7th Facing Race: A National Conference will be held in Dallas, TX November 13-15, 2014. Organizers, educators, artists, funders and everyone interested in racial equity is invited to exchange best practices and learn about innovative models and successful organizing initiatives. Proposals must be submitted by January 24, 2014.
Contact: Race Forward, 32 Broadway, Suite 1801, New York, NY 10004; 212-513-7925; media @raceforward.org; http://race forward.org/.
VETERANS - They Were Soldiers: How the Wounded Return from America’s Wars - The Untold Story, by Ann Jones, is about the journey of veterans from the moment of being wounded in rural Afghanistan to their return home.
Contact: Haymarket Books, PO Box 180165, Chicago, IL 60618; 773-583-7884; http://www.haymarketbooks.org/.
LIBYA - Destroying Libya and World Order: The Three-Decade U.S. Campaign to Terminate the Qaddafi Revolution, by Francis A. Boyle, is a history and critique of American foreign policy from Reagan to Obama.
Contact: Clarity Press, Inc., Ste. 469, 3277 Roswell Rd. NE, Atlanta, GE 30305; 404-647-6501; firstname.lastname@example.org; http://www. claritypress.com/.
CHILDREN - Fannie and Freddie by Becky Z. Dernbach is about two bumbling villains who gamble away the savings of the people of Homeville.
Contact: fannieandfreddiebook @gmail.com; http://fannieand freddie.org/.
PROTEST/COMIC - Fight the Power!: A Visual History of Protest Among English Speaking Peoples, by Sean Michael Wilson and Benjamin Dickson is a graphic narrative that explains how people have fought against oppression.
Contact: Seven Stories Press, 140 Watts Street, New York, NY 10013; 212-226-8760; info@ sevenstories.com; http://www. sevenstories.com.
CHILDREN - Brave Girl by Michelle Markel and illustrated by Melissa Sweet is the true story of Clara Lemlich, a young Ukrainian immigrant who led the largest strike of women workers in U.S. history.
Contact: http://www.harpercollins childrens.com/Kids/.
FESTIVAL - The 2014 Queer Women of Color Film Festival will be held June 13-15 in San Francisco. The festival is currently accepting submissions until December 31.
Contact: QWOCMAP, 59 Cook Street, San Francisco, CA 94118-3310; 415-752-0868; email@example.com; http://www.qwocmap.org/.
IRAQ/REFUGEES - Ten years after the U.S.-led war in Iraq, thousands of displaced Iraqi refugees are still facing a crisis in the United States. The Lost Dream follows Nazar and Salam who had to flee Iraq in order to avoid threats by Al- Qaeda-affiliated groups and Iraqi insurgents that consider them “traitors” for supporting U.S. forces in Operation Iraqi Freedom.
Contact: Typecast Films, 888- 591-3456; info@type castfilms. com; http://type castfilms.com/.
HUMAN RIGHTS - Lyrical Revolt! III will be held December 4 in Syracuse, NY. The event will feature hip-hop musician Anhel whose album Young, Gifted, and Brown was just released. The event is sponsored by ANSWER Syracuse, Liberation News, and SyracuseHip Hop.com. Performers and artists are encouraged to send submissions.
Contact: firstname.lastname@example.org; http://www.answercoalition.org/syracuse/.
FOLK - Musician Painless Parker has released his album Music for miscreants, malcontents and misanthropes featuring “Fuck Yeah, the Working Class.”
Contact: email@example.com; http://painlessparkermusic.com/.
COMEDY - Political comedian Lee Camp’s new album Pepper Spray the Tears Away has been released.