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The Absurdity of the Present: Stealing Vaccine Research

Last week the breaking news in international political/media drama was the Russians hacking vaccine research in Europe and America, and on Tuesday the DOJ charged two Chinese hackers for hacking what Politico called “hundreds of millions of dollars worth of intellectual property and trade secrets” about vaccines for a deadly virus that is currently ravaging humanity.

Right now the world is working on a lot of vaccines, as well as treatments, for and research about the virus. We’re not just trying to end it, we’re trying to pull the virus, and ourselves, out of the fog of war that we’re in right now. Some of that research is ending up as trade secrets and intellectual property, the modern legal equivalent of what was once the secrecy of alchemists.

Russia and China are not rich countries the way the US is, though they are spending their blood and treasure on medical research and treatment just like the rest of us. Journalists and experts, particularly in cybersecurity, have blasted their efforts at hacking European and North American corporations as a kind of greed and cheating when it comes to the vaccines research process.

This all makes sense, from the perspective of the absurdity of the present moment. As Misha Glenny, a cybersecurity reporter who went on the BBC’s Newscast to blast the Russian effort to get medical research data said, “They’re just trying to get a vaccine on the cheap as far as I can see.”

Of course they are. It’s a fucking vaccine for a disease that’s causing a global pandemic.

Before we talk about how important it is to motivate biotech firm Moderna to work on a medicine that could save millions and put the planet to rights again (at least in this one way), let’s talk about where we are right now.

As of this writing, there have been 15 million confirmed cases of Covid-19 and 600,000 deaths. It’s clear there will be millions of deaths before the pandemic is over and millions more maimed from the inside by the disease. There is also the suffering of families and communities as folks bury some of their loved ones and support loved ones who will suffer with the long term effects of Covid-19 for years or decades. There is no global public health infrastructure or even much in the way of public health standards around the world.

Most people can’t get good quality care at the best of times, even though we have the ability as a species to provide it several times over. It’s normally bad and it’s all much worse right now. Pediatric vaccination rates has fallen through the floor the world over, and it could be that millions more children die of preventable diseases than adults of Covid-19, just because Covid-19 has wrecked public health infrastructure so badly. And with economic downturns around the world, there’s no money to pay for routine care which could cost more lives than the disease itself, again.

But there’s reasons things are shut down. The thing about a respiratory virus like SARS-CoV-2 is that it’s so aggressively transmissible that no one is safe until everyone is safe. Despite how much we all hate each other, if Russian and Chinese people can’t vaccinate against both Covid-19 and Measles, we will all pay, in blood, and treasure, and the kind of grief that takes generations to mend.

Will those generations care about Moderna, GlaxoSmithKline, or Sanofi’s Q4 2020?

No, they will not care. They will be as mystified by what we’re doing now, by what we’re valuing now, as we are by the people in history who drank mercury trying to live forever, or attached leeches to George Washington until he died of blood loss, or any of the other stupid things we did that killed people or actively spread disease over the millennia.

We still live with the biological and cultural trauma of the Black Death, and our whole world order was configured by Smallpox. But still, we are ghouls and deatheaters, asking about intellectual property rights when someone is using hacking to try to save lives, for once.

Why is any of this, any of this at all, still a secret? Why isn’t all the data and research being published and collated and poured through by the scientific community the moment the data is collected? Why are we still such ghouls when it comes to public health?

Why do children still die of Measles? Why do 10 million people fall ill with TB every year? Why, in fucking 2020, do people die of fucking Consumption?

We could stop all of this.

But we think health should be a profitable business, like it’s making fancy handbags or golf clubs or something.

We don’t think voting is something you should pay for, or that only the well enough off should be governed. We don’t think streets should turn a profit, or that you should pay a monthly fee to maintain your human rights. We don’t even think you should pay firefighters to save your house, especially since it’s going to set the rest of your city on fire. But we think Chinese people or Russians or you should pay for a vaccine, even though if you can’t, it’s going to set the rest of your city and then the world on fire.

It’s evil, it’s madness, and the fact that it’s just the way things are doesn’t make it even the tiniest bit less absurd. And my colleagues in the media would do well to point that out, and not just leave it to comment sections below their articles and Trevor Noah.


My work for Emptywheel is supported by my wonderful patrons on Patreon. You can find out more, and support my work, at Patreon. Thanks to Ryan Singel.

 


 

Capitalism fails the Covid-19 Crisis

We have shut down large parts of our economy and our social lives to cope with the Covid-19 crisis. This experience might teach us a lot about ourselves and about our economic system. Here are some things that seem important to me.

1. The point of capitalism is to protect capitalists. We see this fact after every financial crisis. The bailouts go to capitalists and their corporations, and therefore indirectly to the shareholders, who are largely in the top 10% in wealth. That was so after the Great Crash of 2008 when the financial institutions that caused the disaster were bailed out with massive help from Congress and the Fed. Other massive aid went to the automobile industry and airlines. There was next to nothing for any of the millions of us damaged by the cheats and frauds of the financial sector.

This time the money cannon was first aimed at the financial institutions. Fed programs to save the financial system include the following:
a. Cutting bank capital requirements.
b. A quantitative easing program, under which the Fed will purchase an unlimited amount of Treasuries and Agent debt, commercial real estate backed by Fannie and Freddie, and pretty much anything else as needed to preserve liquidity and insure orderly markets. Whatever that means.
c. A program, called a facility, to buy newly-issued long term corporate debt.
d. A similar facility to buy existing corporate debt.
e. A facility to buy asset-backed securities, like packages of student loans. and collateralized business loans.
f. Money Market Mutual Fund Liquidity Facility that we hope will stabilize the money market funds so many people use.
g. A facility to buy certain tax-free commercial paper, so states and localities an continue to fund certain public and private projects.
h. The Fed is also considering a plan to lend directly to small businesses.

Congress quickly got in on the act and fired its money cannon at the corporate sector. The bill enabled the Fed to make cheap loans totaling up to $4.5 trillion, as the lobbyists for the rich patted them on the wallet. Another truck-load of money is going to hospitals, including the hundreds owned by private equity and publicly-held corporations.

Oh, and a few extra dollars for the unemployed for a few weeks eventually unless the repulsive spawn of Antonin Scalia can stop it; and small checks to some families, distributed whenever Treasury Secretary Mnuchin gets around to it.

The details behind this are equally astounding, as you can see from Dave Dayen’s newsletter, Unsanitized, which you should read every day.

2. Capitalism doesn’t fix problems. If it wasn’t already obvious, this crisis proves that capitalism makes crises like the pandemic worse. Our supply chains broke down. We are unable to produce the needed medical supplies and equipment. We failed to produce tests for this virus.

Our hospital system was driven by the profit motive to minimize surge capacity in beds, supplies and equipment; it was easily overwhelmed. What we actually mean by “flattening the curve” is that we spread out the cases requiring medical intervention so we don’t exceed our capacity to provide care. After the Great Crash we called it “foaming the runway”.

Flattening the curve should have bought time to restock our medical supplies and equipment, and get a decent testing program up and running. That didn’t happen. Trump insisted that markets driven by the profit motive allocate half of the available supplies, and he distributed the rest following what looks like political logic for his own benefit. As Josh Marshall explains, it makes sense to use the existing distribution chains, but it makes no sense whatsoever to allow the private sector to set up auctions where states and the federal government bid against each other for the necessary equipment. The “market” didn’t supply the needed supplies and equipment. There aren’t enough test kits, and there is no testing program. Following neoliberal theory, government cannot or will not solve these problems.

Capitalism didn’t fix anything. Instead, capitalists demanded government bailouts.

3. What Rugged Individual? Our economy runs on the exploitation of millions of people whose work, according to the “market”, is worth little more income than necessary to keep them alive. Suddenly even the most aggressive neoliberals are forced to acknowledge that all of us depend on these people, who feed us, provide us with deliveries, pick up our garbage, clean our streets, cook for us, clean our houses, pick our produce, kill animals and cut them up for our dinners, haul the trailers that bring us our food, and tend to our elderly. Not to mention the RNs, the LPNs, the LPAs, the medical technicians who operate ventilators and testing equipment, the phlebotomists, the lab techs, the pharmacy assistants, the all-important janitors and cleaners, the EMTs; and the clerks who manage the insurance businesses that pay the medical people.

Suddenly we hear about these people. Suddenly they are our frontline troops, our new heroes. Suddenly we hear stories about medical workers being applauded on their way to work. We notice the people putting toilet paper on the shelves. We think about the people putting food on our tables, delivery people, Lyft drivers, UPS drivers. It suddenly seems perfectly obvious that we are dependent of these people in a way that we are not dependent on the financial thugs at Goldman Sachs and JPMorgan Chase and Private Equity firms.

And for a light touch, get a load of this short CNBC clip.

The crisis exposes the lie of the American myth of the rugged individual, amplified into the neoliberal foolishness of Homo Economicus. No one stands alone. The Don’t Tread On Me crowd insisting on making their semi-annual trip to church for Easter worship whinge on about liberty, ignoring the risk to others. They won’t all get Covid-19, but some will, and they contribute to the surge at hospitals, the depletion of medical supplies and equipment, and the exposure to health care workers.

In fact it’s the people who keep us going as a nation who follow the real American Dream: they cooperate to solve problems. In this case cooperative problem-solving is undermined by leaders put into office by allegedly Conservative Rugged Individuals; not just the elected officials, but Senators, Representatives, political appointees, and judges. If the sickening SCOTUS Chief Justice catches Covid-19 in Wisconsin, the health care workers there will work together to take care of him even though he made them choose between dangerous exposure at the polls and losing their right to vote.

All of us depend on each other for the things we cannot provide for ourselves. We also depend on each other for creating and enriching our humanity. We lose a critical piece of ourselves when we can’t hang out with other humans, chat with the check-out lady at the drug store, get advice on TVs from the guy at Best Buy, argue about the NBA championship series at work, discuss the meaning of the Parable of the Laborers In The Vineyard with our Bible Study groups, share a meal or a laugh or a hug.

I hope we remember this dependence when the lockdowns end.

From Flickr, Creative Commons License

We Have Never Been Modern: Conclusion

Posts in this series. In earlier posts I focused on the parts of We Have Never Been Modern by Bruno Latour that seemed relevant to my discussion of neoliberalism and its discontents. I did not discuss a number of fascinating issues raised by Latour about the state of philosophy today, and I did not exactly describe his overall project. This post will conclude my discussion of this book with two thoughts.

Background

Latour thinks the big problem with modernity is that it enables us to ignore quasi-objects and their impact on us as individuals and as a society. We do this because the tools we use to learn about things are focused on the separation of culture and nature through the work of purification. We assign objects for study to one or the other category, and use the tools we developed to study that domain to look at the problem. Latour thinks these tools are inadequate to study things that are combinations of culture and nature, which he calls quasi-objects.

The Role of Neoliberalism

Latour is worried about the unregulated and misunderstood quasi-objects that have overrun our society. He thinks what he calls the Modern Constitution facilitated the onslaught. He was writing in the early 1990s, as neoliberalism was emerging into our consciousness as the dominant economic structure. It’s not surprising that Latour ignored the important role played by this economic system. We didn’t even have a name for that system when he wrote. Latour’s foresight in recognizing the the problems that would result from failure to control quasi-objects was impressive.

Looking back, I’d argue that a big part of the blame for the failure to control quasi-objects should be assigned to the free-market economists who shilled for the capitalists, ignored any negative consequences of the changes that were underway, and assured everyone that markets were the only solution to any problem that involved the allocation of resources. One obvious example of the contribution of neoliberalism to our current plight is the failure of economists to pay attention to rising inequality and the possibility of domination of the economic and political systems by the richest capitalists and their minions.

As another example of the contribution of neoliberalism, consider the outbreak of the coronavirus COVID-19. We first saw a coronavirus in the SARS epidemic of 2003. The study of the SARS virus ramped up and began to produce results. Then the possibility of an epidemic evaporated, and work slowed to a crawl. Then the new coronavirus, COVID-19 emerged. Now we are forced into a panic-driven research project.

There was no profit in studying the coronavirus family, and therefore there was no reason to think about it during the 16 years since the emergence of SARS. The role of government is to fill that gap, but the neoliberal state is supposed to operate like a business, so government funding dried up. The government was further weakened by the selection of an incompetent and ignorant businessman as President:

“I’m a businessperson. I don’t like having thousands of people around when you don’t need them,” Trump said. “When we need them, we can get them back very quickly.”

This is a perfect example of the consequences of electing fools. But it’s also an indictment of neoliberalism.

The Role of Purification

Latour blames a lot of the problem on the work of purification, the separation of nature from culture. Purification weeds out all aspects of culture when we study the objects of nature, and weeds out all aspects of nature when we study society/culture. Obviously it’s impossible to study a rock or a proton or COVID-19 without isolating it from all other aspects of nature and culture. The work of purification is essential to any formal study of material things. But we seem to think it should be used to study culture, and that we can learn all we need to know about society through specialized tools developed to study canonical societal categories, such as politics or the economy.

The choice of things to be studied, and to some extent the methods of study, are embedded in our social structures. This fact is perhaps less important in the study of nature, but it remains a crucial fact. There are many areas of scientific research that would be valuable. The selection of the things to be studied is a function of culture, not nature. Stupid choices have horrible effects, as the failure to study coronaviruses demonstrates.

The study of culture works the same way. There is some value in looking at specific aspects of culture through closed-off academic study, such as political science, sociology, or economics. We can gain some insights into the workings of our broader culture through these disciplines. But they are not exhaustive of our understanding of culture as a whole, or of society in the broadest sense. For that we need new modes of thinking. In addition, these disciplines ignore the role played by science in the way society operates. This last is the central insight of the Nonmodern Constitution, which I discuss here.

Latour emphatically rejects postmodern thought as a way forward. In this book, he suggests applying the principles of our broadest discipline, anthropology, to our own society. That would be possible if we stripped out the Modern Constitution with its absolute separation between culture and nature and its insistence that we are not like our ancestors and our society is not like theirs in any way.

In later works, he offers a broader method of studying quasi-objects. which is generally known as Actor-Network Theory. He doesn’t like the name, for reasons discussed in this article. For further discussion, check out this Wikipedia entry.

Conclusion

We can no longer ignore the way quasi-objects change us as individuals and as a society. We have to face up to the changes they make in nature, through climate change, piles of waste, and consumption of resources. Latour thinks we need a new kind of intellectual discipline for the study of what he calls collectives, which include all groupings of people and things. I think this is a fascinating idea.

From Flickr, Creative Commons License

Introduction and Index To We Have Never Been Modern by Bruno Latour

Posts in this series.
Subject, Quasi-Object, Object
Quasi-Objects For Moderns And Premoderns
The Nonmoderns
We have Never Been Modern: Conclusion
I’ve been reading We Have Never Been Modern, a 1991 book by the French thinker Bruno Latour, pictured above. It doesn’t lend itself to my usual treatment, reading and commenting on a chapter or two. Instead, I’m going to try to lay out some of the aspects that seem important enough to merit discussion.

Background

1. It seems to me that we as a nation, and me personally, are caught up in the controversy of the day, and that dominates our conversations. I notice it not just on Twitter and in the media, but in my personal life, talking with friends.

That’s especially true in our political discourse. In the Democratic party, two candidates talk about systemic problems, but nobody focuses on their critiques. Instead, the media and the other candidates focus on details of the specific plans that rise from those critiques. They complain about cost, argue about whether those plans could be turned into law, nit-pick personalities, and say anything to distract from the central critiques. Those responses turn into the controversy of the day, and the two central and powerful critiques are never discussed. We will never know what we think about corruption or about grotesque inequality, because they are not fodder for the controversy of the day.

I hope this book will help get away from short-term thinking and into a larger perspective.

2. I agree with the definition of problems laid out by those two candidates, corruption and obscene inequality. I see them as the expected outcomes of the capitalist system. Capitalism is one part of an even bigger structure in which we find ourselves. The other part is our understanding of ourselves as individuals and as members of society. You will note that in this structure, I have divided the large structure into two parts, a) our conception of ourselves and our role in society, and b) the economy, taken as a proxy for all that isn’t human.

These two systems might seem to be separate, but they are intermixed. Neoliberal capitalism is a product of the philosophical tradition of utilitarianism. It teaches us that the individual is homo economicus, fully defined by individual production and consumption. [1] This is not a subject of discussion in the public sphere, only in backwaters in academia and the occasional blog. Other ways of understanding ourselves as individuals and as members of society are rarely discussed in any serious way outside those backwaters.

I’ve been thinking that we need a framework that places these two systems in a more united perspective. After all, these systems do intermix into an overarching system that generates each on a continuous basis, a system in which both society and the conception of the self evolve over time, all the while affecting each other.

3. In my introduction to the series on The Origins Of Totalitarianism by Hannah Arendt, I quoted this from Leszek Kolakowski’s book Modernity On Endless Trial:

If we are to believe Hegel – or Collingwood – no age, no civilization, is capable of conceptually identifying itself. This can only be done after its demise, and even then, as we know too well, such an identification is never certain or universally accepted. Both the general morphology of civilizations and the descriptions of their constitutive characteristics are notoriously controversial and heavily loaded with ideological biases, whether they express a need for self-assertion by comparison with the past or a malaise in one’s own cultural environment and the resulting nostalgia for the good times of old. Collingwood suggests that each historical period has a number of basic (“absolute”) presuppositions which it is unable clearly to articulate and which provide a latent inspiration for its explicit values and beliefs, its typical reactions and aspirations. If so, we might try to uncover those presuppositions in the lives of our ancient or medieval ancestors and perhaps build on this basis a ” history of mentalities” (as opposed to the “history of ideas”); but we are in principle prevented from revealing them in our own age, unless, of course, … we are living in the twilight, at the very end of an epoch. P. 3.

Latour tries to answer the question anyway: what does it mean to be “modern”? Arguably we are at the very end of an epoch in human history, now that relentless capitalism has rotted liberal democracies and set the planet on fire. Arguably Latour follows Collingwood’s suggestion of looking back in time to the end of one period, the premodern and the start of this period, the modern.

4. There is little point in these abstractions unless they help us solve a problem. The problem I’m thinking about is approximately this: How should we arrange society so that each of us can flourish as individuals and as social creatures who inhabit the this world with others?

Observations

1. When confronted with a problem, we often try to break it into smaller problems. Then we try to solve those and put the results back together to form a solution. That seems to work pretty well in science, where things cleave in only one or a few ways. It works less well in other areas of life, because there are all sorts of ways to divide social things up, and putting the results back together is an exercise in judgment if not guesswork.

2. I divided society into the economy and the human, because capitalism is so all-emcompassing. This has the virtue of connecting two strands of thought that run through my posts. But there are other ways we could divide it into two parts. One might be nature and society. And there are many more, some more useful than others. We should think about these divisions from the perspective of the use we intend to make of them.

3. I talk about society as if it were a monolith. If we think of society as an umbrella term that encompasses the circumstances of life in the US, it seems so. But everyone experiences those circumstances differently. It’s impossible to take those different experiences into account when we think at this level of abstraction. That doesn’t mean that these different experiences aren’t important, they are. And any hypothesis we might develop should be examined to see if that important factor would make us see things differently.

Resources

This is a difficult book, and I am not going to discuss large parts of it in detail. [2] For those interested in a brief overview, I suggest listening to Episode 230 of the podcast Partially Examined Life. It features Lynda Olman, one of the authors of an article based on an interview of Latour (Lynda Walsh in the following citation.) The first pages summarize some of Latour’s thinking. Forum: Bruno Latour on Rhetoric, by Lynda Walsh, Nathaniel A. Rivers, Jenny Rice, Laurie E. Gries, Jennifer L. Bay, Thomas Rickert & Carolyn R. Miller, Rhetoric Society Quarterly, 47:5, 403-462 (2017). It should be available online through your library.

========
[1] The hidden assertion, that the people at the top of society are exempt from this condition, is never mentioned in this discussion, although it is one of the main points made by Philip Mirowski in his book, Never Let A Serious Crisis Go to Waste.

[2] One of the things I won’t discuss is Latour’s attitude towards postmedernists such as Derrida and Lyotard. This is sad because it’s funny and quite rude, and I agree whole-heartedly.

From Flickr, Creative Commons License

The Politics of The Green New Deal: Part 1

The Green New Deal starts with the recognition that drastic changes to society and the economy are necessary to cope with the dangers of climate change. I see two basic assertions behind the Green New Deal. First, it says that the pain and costs of restructuring the economy will not be borne by the working class, as has been the case in every other economic disruption. Second, as a nation we cannot allow capitalists to dominate our future. There is a lot to unpack in these two issues, so this is the first of a short series.

In the course of the first part of my neoliberalism project we saw the effects of capitalism on the working class*. This aphorism from Thucydides sums up human history nicely: “the strong do what they can and the poor suffer what they must”. We saw this in the history of the English enclosures discussed by Polany; the use of state militias to break strikes in the US; and in Foucault’s discussion of the way the state forced people into becoming good little factory workers, supervised closely, but largely self-governing, self-controlled.

Republicans have hated the New Deal since forever. The Democrats started cringing over it right after WWII amid Republican fear-mongering about Communists. The Democrats gave the capitalists their first win with the passage of Taft-Hartley in 1947 and their aggressive purge of every element of leftist thinking in their ranks. Liberals joined the Capitalist Celebration; they gradually embraced deregulation, and they did nothing to protect unions, the source of worker power. Democratic wonks became experts at explaining the virtues of the market and the evils of Big Government, and crafted ever more complicated solutions to the problems created by rampant capitalism.

It was with this mindset that the US confronted the biggest crisis facing the working class, globalization. Clinton and the Democrats embraced NAFTA, and so did Democratic wonks. Paul Krugman wrote an article for Foreign Affairs attacking unions for saying that NAFTA would cost US workers their jobs. Nonsense, said Krugman. The impact would be marginal, and the Fed would simply cut interest rates to keep the economy roaring; special bonus: job training programs. This mentality continued to dominate US politics and Democratic party wonks as manufacturing jobs vanished. The promised solutions didn’t work. Capitalists got rich, and the burdens were pushed off onto the working class and small towns across the country.

Here’s a recent defense of NAFTA from the Council on Foreign Affairs. It admits that NAFTA contributed to the decline of US manufacturing jobs, but ignores what happened to the fired workers. It claims that NAFTA provided benefits to the economy as a whole, without specifying who reaped those benefits. It adds this:

Edward Alden, a senior fellow at the Council on Foreign Relations, says anxiety over trade deals has grown because wages haven’t kept pace with labor productivity while income inequality has risen. To some extent, he says, trade deals have hastened the pace of these changes in that they have “reinforced the globalization of the American economy.”

Translation: capitalists replaced well-paid manufacturing jobs with cheaper foreign labor, to their benefit and that of their corporations. They ignored the impact on workers, who lost their livelihoods, their insurance, and more. The impact of free trade with China is even greater, according to a recent study, and neither party lifted a finger to help.

The Green New Deal recognizes that climate change is going to create massive disruption, including staggering losses in economic output and damage to property and infrastructure. In the ordinary course of things, the costs of coping with these disruptions would be borne by the working class. After all, the entire point of capitalism is rising profits for capital, and if that imposes costs on the working class, so be it.

To meet the goals of the Green New Deal we will have to reduce our reliance on fossil fuels. Coal mining jobs are already vanishing, and jobs in oil and gas production are next to go. The latter sector currently employs an estimated 2.1 million people directly and indirectly. Every one of those jobs lost in these and other fields will cost families their incomes, their health insurance, their physical and mental well-being, and their hope of retirement security. Their home lives will be damaged as they cope with unemployment. Marriages will be lost, children will be injured, and elderly parents will be affected in their own financial security, and the pain of seeing the injuries to their children and grandchildren.

New jobs will be created, but where? If the jobs are far away, the unemployed will have to bear the cost and emotional drain of moving. It’s especially difficult for older workers, and the strains of moving teen-agers adds another layer of difficulty. For some, moving will be a positive, an opportunity to start over. But for many others, it’s the loss of a sense of place, the connection to the people and places in which they are comfortable.

One critical roblem is the loss of a home. Home ownership has decreased from 68.6% to 63.7% since the 2007 Survey of Consumer Finances, but for many Americans the home represents a significant part of family wealth. See Tables accompanying the 2016 Survey of Consumer Finances, Tables 9.07, line 6, and 9.16 line 6 and line 89 et seq. If there is mass migration to new jobs, there will be substantial losses of wealth for many families. To the extent people are forced to move from areas with low-cost housing to high-cost housing, there will be financial difficulties.

The Green New Deal says that we need to deal with these problems directly, not through some complicated 60 point plan relying on some newly created market or capitalists, but by direct government intervention. Section 4.5 requires the government to direct :

… investments to spur economic development, deepen and diversify industry in local and regional economies, and build wealth and community ownership, while prioritizing high-quality job creation and economic, social, and environmental benefits in frontline and vulnerable communities that may otherwise struggle with the transition away from greenhouse gas intensive industries;

Section 4.15 directs the government to provide

…all people of the United States with—
(i) high-quality health care;
(ii) affordable, safe, and adequate housing;
(iii) economic security; and
(iv) access to clean water, clean air, healthy and affordable food, and nature.

Taken as a whole the Green New Deal rejects the neoliberal program of protecting capital at all costs, in favor of putting people and the planet first.

——–
* I’m going to use the term working class in this series, because as I see it, the conflict is between the working class and the capitalists. In general, by working class I mean everyone who must sell their labor in order to eat. I’ve been in the habit of using the term “workers” but I’m tired of euphemisms. This definition covers a wide range of incomes, but it’s stupid to pretend that middle class people living paycheck to paycheck or people with much higher incomes who have little wealth have interests that are differentiable in any meaningful way. The Fed says that 40% of US households could not pay for an unexpected $400 expense without borrowing or selling an asset. The most recent Survey of Consumer Finances (2016) says that the conditional mean value of retirement accounts for the group with income between the 50th and 90th percentiles is $157K, from which I’d estimate median net financial wealth for that group is in the range of $300K. That means they have to keep working. I’d guess that most of the people in the top 10% of wealth could mostly make it if they were forced out of work, but certainly not all of them. They may think of themselves as wealthy because they own real estate and financial assets, and they may identify with the truly wealthy more than the working class; but I see it their real interests are aligned with those of the working class, because if that group fails, their wealth will be worthless.

[Photo by Piron Guillaume via Unsplash]

A Neoliberal Argument for Medicare for All

[NB: Note the byline, as always. /~Rayne]

The old white billionaire dudes lipping off about “un-American” expectations of fairness and equity in income distribution jogged something loose in me.

I’m so damned angry about their willingness to complain their ability to buy yet another fucking yacht may be diminished because the average working American has the chutzpah to demand health care for everyone on top of a living wage.

What really cheeses me off is the utter stupidity of these so-called business geniuses.

WHY ARE THEY IN THE HEALTH CARE BUSINESS AT ALL??

Let’s pick on Mr. Luxury Beverage’s business. His core competency is preparing beverages to meet Americans’ tastes in an appealing environment.

Why has he spent any of his corporation’s human resource dollars on health care programs? His corporation’s expertise is NOT health care or insurance; they’re only providing health care because competition for stable, healthy employees is tight and turnover costs a butt-load of money.

I know you’ll love that technical term ‘butt-load’ but seriously, turnover in low-wage jobs in which employers have invested considerable training eats away at profit margins. It can take a year or two for low-level employees to reach maximum productivity — like pouring the optimum level of crema on a double espresso and know the entire menu by heart while operating at full-speed during rush hour.

What does it cost the Luxury Beverage business if workers leave inside that first year because they can get health care elsewhere?

Ditto for Mr. Business News Provider. His core competency is gathering, reporting, distributing timely news preferred by businesses ahead of the rest of the competition; time matters greatly if stock trades on this corporation’s work product. Why is his corporation in the health care business at all?

And yet both disparate businesses — beverage purveyor and news distributor — expect a comparable level of health among their workforce. They aren’t factoring into SWOT analyses the possibility a competitor’s workforce might be more healthy and fit.

If we look at other industries like the automotive industry or construction, healthy workers who can handle physical demands becomes mission critical. Only so much work can be automated or eased with technology and equipment.

And yet the cost of negotiating and providing health care for their employees can be the difference between profitability and business failure.

The challenge is greater when competing with companies overseas as automakers do.  Health care costs for the Big Three here add a significant percentage to the cost of goods sold — far more than $2 billion a year — while their foreign competitors pay less because the costs is absorbed across all of society instead of their businesses’ experience. The costs are based on a population which has had uniform access to health care throughout their lives.

So why are industries which aren’t delivering health care in the business of providing health care at all?

It’s in the best interest of the country and its industries to use economies of scale to acquire good health care at lower cost, provide it to the entire country, so that the country’s businesses can focus solely on their core competencies as well as the features which differentiate them positively from competing overseas products.

This is exactly what the neoliberal “strong but impartial state” is for in concert with “free enterprise, the system of competition,” to provide what the people know is needed to establish economic justice, insure domestic peace, provide for the common defense against health and employment insecurity, promote the general welfare of all citizens and workers, while securing an optimum opportunity for businesses to compete.

The U.S. is going to spend $3.5 trillion on health care this year under this current system. This is nearly two times what comparable countries spend on average. It’s inflating the cost of everything we make and sell. Imagine the profits corporations could make and keep if they didn’t have to spend valuable time and resources on health care benefits management.

But, but socialism! — this is the immediate refrain offered as push back against institutionalizing health care as a federal program to be provided to all.

Do you see either Mr. Luxury Beverages or Mr. Business News Provider complaining about the federal government’s role in assuring baseline education across the country through its K-12 public school system? I would argue this is the most American federal program we have now or have ever had since its inception with the Pilgrims.

But socialized K-12 education!

Imagine having to argue as a presidential candidate that we can’t have education for all though this program has already directly benefited every business and our common defense in some way.

Imagine American corporations, each independently in isolation, spending billions each year on human resources to research and negotiate education programs as an offering for employees and their families. Ridiculous, right? It’d suffocate so many young businesses on the verge of scaling up.

But these old white male billionaires don’t see any problem with publicly-funded education for all which helped make them what they are today.

I can’t believe I’ve had to argue a neoliberal case for publicly-funded health care for all because a guy who grew up in public housing thinks such health care is “un-American.”

 

Treat this as an open thread.

A Primer On Ideology

Ideology and Discourse

Ideology and Discourse Analysis, a paper by Teun A. van Dijk, a professor at the University Pompeu Fabra in Barcelona, begins by introducing us to the theory of ideology, and then uses van Dijk’s specialty, discourse analysis, to identify the way ideology informs discourse. He identifies a number of assumptions and principles of the theory of ideology so this will serve as a primer on the subject.

1. Ideologies are belief structures, cognitive structures based on ideas. They are not the same thing as the practices and actions that evidence them.

2. Ideologies are publicly shared by members of a group of social actors. They form a common belief structure and are put into action by the group, verbally, and in social relations with people within the group though not necessarily in interactions with people outside the group. As an example, think about racism as an ideology. Among themselves, racists use certain language, share certain beliefs, and act is specific ways when racial matters are at stake. They do not always do so when interacting with anti-racists or non-racists, and they do not always do so when interacting with members of the despised group, Feminists may behave similarly: among themselves or with sympathizers, they use certain language and share certain beliefs, but among non-feminists, they may choose to act somewhat differently, and to use other language.

3. Ideologies are not just some random group of ideas: “They control and organize other socially shared beliefs.” If you know someone is a racist or a feminist you can predict other beliefs and ideas, and you can predict the kinds of language the person will use and the way they will interpret events and theories.

4. Ideologies are gradually acquired, often unconsciously, and in the same way, they are only gradually changed, even with conscious effort.

According to van Dijk, ideologies serve a number of social and cognitive functions. They are the basis for the discourse and other social practices of the community of believers, and enable the group to act cohesively. And importantly, they act as the “cognitive interface” between members of the group and the social conditions in which the group lives. I understand that to mean that the group sees the facts and causation creating the facts identically.

Thus far, the discussion makes the hypotheses I laid out in this post seem reasonable. Van Dijk goes on to identify a number of gaps in the theory. Most important, he says is the question of exactly what constitutes the content and structure of an ideology. As he puts it, “If socialism, feminism and neoliberalism are ideologies, what exactly do they look like?” He puts forward, somewhat equivocally, several criteria for identifying these, including self-identification, aims, actions, norms, values, affiliations with other groups, and resources.

As to the ideas underlying an ideology, he suggests that the important point is that they are organized, not random lists. That doesn’t mean they are internally consistent quite the contrary. It isn’t obvious exactly which ideas constitute an ideology. One theory is that only the axioms matter, and that the ramifications are not crucial to the ideology. The other is that only the entire complex should be identified as the ideology. Van Dijk favors the former, and I think that’s best. There are all sorts of reasons people might disagree with some of the possible conclusions of an ideology without rejecting its foundation. Related to this point, not all followers of an ideology are fully versed in it. The degree of knowledge, attitudes, and habits of thinking can vary widely.

Then there is the question of what kind of collectivity shares an ideology. For now, it seems to me that the crucial point here is that we can identify a group based solely on a shared ideology without looking at other aspects of their lives. For example, feminists share an ideology, but that ideology is shared across many boundaries, race, class, wealth/income, work, geographic location and so on. I focus on neoliberalism as an ideology, and the group that shares that ideology crosses all those boundaries. Van Dijk describes these boundary crossing ideologies as communities of action and communities of practice.

Van Dijk says that sometimes ideologies become so widely held that “… they become part of generally accepted attitudes of an entire community.” For example, the idea that women should be politically equal to men began as part of the suffragist ideology, but now is so widely accepted that only a tiny number of people disagree. When that happens,ideas lose their status as part of an ideology and become background for everyone, not salient enough to cause disagreements.

In these terms, neoliberalism is an ideology. There are a large number of people who look at political and economic issues solely through the lens of neoliberalism, and most participants in the political and economic sphere either accept it, or use its premises as the starting point for analysis. Thus, even Democrats who deny that they are neoliberals justify a policy by saying that it’s great for the environment and it creates jobs and economic growth. Even for people with only a limited grasp of the entire ideology, the premises leak into economic discussion. I am paid what I’m worth, a worker might say, because that’s just how markets work. Or, they might vote for politicians who promise to cut taxes on the rich because taxes drain money that would otherwise be used for investments and job creation. Evidence plays no role in such decisions.

The most difficult problem is deciphering the specific ideas that define neoliberalism. Philip Mirowski says that this is by design: “… it was self-consciously constituted as an entity dedicated to the development, promulgation, and popularization of doctrines intended to mutate over time. It was a moveable feast, and not a catechism fixed at the Council of Trent.” He describes Thirteen Commandments he has deduced. We must struggle through a fog of simple-minded aphorisms like government bad, markets good. Or, anyone can succeed in capitalism if they work hard and play by the rules. Or maybe that last one is clap louder or win the lucky sperm lottery. The best we can do is judge by actions and rhetoric, in other words, by using discourse analysis, which van Dijk takes up next in this paper, and which I’ll look at next.

Attacking The Neoliberal Ideology

The organizing question of the first phase of my neoliberalism project was how neoliberalism became the dominant discourse in the US. We looked into the dogma of neoliberalism and some of its pillars, particularly neoclassical economics, especially William Stanley Jevons. We looked at history, with Veblen, Arendt, Polanyi and others. I looked at Foucault, the Frankfurt School, and Pierre Bourdieu, and then read a bit of current Marxism through Wood, and a more or less orthodox defender of capitalism, Scott. These readings led to my current view.

I began the project with the view that the post-WWII economic system had morphed into neoliberal capitalism in the 1970s. I now think of our current economic system as capitalism operating with few constraints and having coopted government to act on its behalf and against the interests of most Americans. The removal of restraints and the coopting of government were driven by an ideology, neoliberalism. The ideology was created by a small group, mostly economists. It explains and justifies domination by wealthy capitalists and inspires acceptance of that domination by most Americans.

Neoliberalism began to take over in the early 1970s when the post-WWII economy faltered. The rich began to pour money into pushing the theory that free markets are crucial form of freedom. One important reading on this subject is Milton Friedman’s Capitalism and Freedom. Driven by huge sums of money, neoliberalism appears to be nothing more than another effort by the dominant class, meaning the rich and powerful, to justify its dominant status both for itself and for the subjected class, meaning the rest of us.

As an aside, I note that economists see themselves as uniquely positioned to explain the workings of society to us drudges, barely able to lift our heads from the machinery of production and shake the noise from our brains so we can hear the fruits of their genius. In support, I offer Friedman’s take on racism from Capitalism and Freedom,3 p. 94.

… [T]here are real problems in defining and interpreting discrimination. The man who exercises discrimination pays a price for doing so. He is, as it were, ”buying” what he regards as a “product.” It is hard to see that discrimination can have any meaning other than a “taste” of others that one does not share. We do not regard it as “discrimination” or at least not in the same invidious sense if an individual is willing to pay a higher price to listen to one singer than to another, although we do if he is willing to pay a higher price to have services rendered to him by a person of one color than by a person of another. The difference between the two cases is that in the one case we share the taste, and in the other case we do not. Is there any difference in principle between the taste that leads a householder to prefer an attractive servant to an ugly one and the taste that leads another to prefer a Negro to a white or a white to a Negro, except that we sympathize and agree with the one taste and may not with the other? I do not mean to say that all tastes are equally good.

In the second part of this series, I intend to look at two issues. First, what do academic studies say about ideologies, especially their creation, and their effect on those who adopt them. Second, what can be done to attack an ideology and dislodge it.

As to the first part, I have several hypotheses.

1. Ideologies are cognitive structures shared by a large number of people. People use them to to to orient their choices, to justify their actions, to explain the outcomes of their behaviors, and to explain themselves to others. They become tools to understand society as a whole. Ideologies do not spring magically into the collective mind. They are constructed by humans, and reflect the personal interests of the constructors to a greater or lesser extent.

2. Ideologies have meaning only when articulated. People may share a set of structures, but it’s when they begin to use the structures to talk about, and thus to share, their a) guides to behavior, b) public justifications for their actions and c) explanations for outcomes, that the ideology can be seen to dominate the discourse.

3. The people who articulate the structure can make it work for their benefit by careful construction of the tenets of the ideology.

4. Once the tenets are established, people reason with them instead of considering the actual facts of a situation.

5. Once an ideology is articulated, it becomes possible to see the real organizing principles, the interests served, and the people responsible. The organizing principles may never be articulated by the creators. This leads to the double movement of ideologies, identified in the case of neoliberalism by Philip Mirowski’s. See, e.g., Never Let A Serious Crisis Go To Waste.

I’ll be looking at literature on ideologies to see whether any of these intuitions are correct.

As to the second part, dislodging the discourse, there seem to be two opposing views. One is that you can’t replace something with nothing, so you have to have a replacement ideology before you can hope to dislodge the dominant ideology. The other pole is that first you change the facts on the ground for the better. This shows people that the old ideology produced bad results. That makes room for a new ideology that explains the good outcomes. The second view seems to be motivating the new breed of Democrats, who want change to meet problems, but aren’t interested in adopting a replacement ideology. Of course, plenty of Democrats cling to their “We’re neoliberals, but not ugly like those Republicans” mantra. This includes most of the current leaders of the Party, who are hooked on big money from corporate interests.

I don’t like either view. I think you have to have some explanation for changes besides meeting pressing needs in order to have a coherent program. Even in the early stages of change, there should be motivating principles. Fortunately as I struggled to get started on this part of the project, I found this fascinating article in the New Yorker, a profile of the philosopher Elizabeth Anderson titled The Philosopher Redefining Equalitysd. It seems to me that she teaches a number of the ideas that I have written about, including the pragmatism of John Dewey who I wrote about at FDL, and what it means to be free in a system where capitalists control much of our lives. I’ll be reading her work and commentary in dealing with the second part.

Finally, a word about current politics. I think the motivating principle of neoliberalism is that the rich should be in charge of everything, not just the economy. In current political discourse, people, including me, say that many Democratic politicians, including Hillary Clinton and Joe Biden, are neoliberals. It’s important to understand the reason I think this way. I don’t think Democratic politicians believe that the rich should run everything. They do, however, privilege what they call “market solutions” and tweaks to the current system over the massive change that is obviously needed. They may not be neoliberal in principle, but they are neoliberal in action. To me this is a meaningful distinction. It means that any Democrat is a better choice than any Republican, but that it’s possible to be better. I worry that if there are no articulated principles for evaluating new policies, there is a danger that neoliberal principles will be used. I see PAYGO as an example of this concern.

Now that the Democrats have taken the House and seem to have momentum going into the election cycle, these distinctions are critical. We need to have this discussion openly, and without regard to the defenders of the dominant class. After all, the dominant class is the tiniest of minorities. It has no justifiable claim to its dominance, and we need to make that obvious.

Update: I forgot to thank Eureka for a comment that crystalized my thinking about how to proceed.

Democracy Against Capitalism: Introduction to New Series

My original plan was to do a series on Wolfgang Streeck’s book, How Will Capitalism End?, but it’s really distressing, so I took a break and read a couple of novels, Rachel Kushner’s The Flamethrowers about the 70s art scene in New York and the Red Brigades in Italy, and then Impossible Views of the World by Lucy Ives, both of which were engaging and the second was funny, at least to me. It ran out suddenly, as books will do when read on an e-reader, and I didn’t want to go back to Streeck so I took a look at some books I had acquired but not read. That’s how I stumbled into Democracy Against Capitalism: Renewing Historical Materialism by Ellen Meiksins Wood.

Usually I seek out books because they seem to fall into place in my neoliberalism project. Not this one. A couple of years ago my sister told me that Verso was having a sale on ebooks, all you want for a pound each. So I browsed the catalog and picked out several, including a volume of works by Rosa Luxemburg, and based solely on the title, picked up Wood’s book. When I started it, I had no idea what it was about, or who Wood was. It turns out she’s a major Marxist scholar with wide interests in history and economics. Here’s an appreciation by Vivek Chibber published in Jacobin at Wood’s death in 2016 at the age of 74. This article discusses her main ideas, many of which are addressed in this book.

I’ve read several pieces lately on the question of the compatibility of capitalism and democracy. This one by Eric Levitz is a level-headed view of the main lines of lefty worries, and will help inform the discussion I hope to generate. This one from the Economist is conservative but also worried. As I have said several times during this project, the left has no real theory for criticizing capitalism. That means left-liberal focus has been on criticizing the forms of our democracy. That’s certainly a reasonable program, but it’s limited. A better idea is to allow a formal criticism of capitalism, especially neoliberal capitalism. Critique of capitalism has been the main contribution of Marxism from the beginning.

The 200th anniversary of Marx’ death was May 5, and it brought out the crazy. I won’t cite any more of that than appears in this post, but for fun just search for Karl Marx Birthday, and take your pick. People talk about believing in Marx like it was a religion. We don’t talk about believing in Kant, though, or Camus. We don’t believe or disbelieve in philosophers, we read them and argue with them, and use them to form ideas about our lives and our society. We can and should do the same with Marx. As we go through this book, I’ll point out some of his ideas we can find in Polanyi’s The Great Transformation, Arendt’s The Origins of Totalitarianism, Veblen’s The Theory of Business Enterprise, Foucault, and the books I’ve discussed on Bourdieu and Critical Theory, as well as economic texts and papers.

Wood starts from the proposition that criticizing capitalism went out of intellectual fashion in the second half of the 20th Century. This alone should make it obvious why I like this book. Regular readers will recall my recurring use of the term Capitalist Celebration which I got from C. Wright Mills to describe the same idea.

‘Post-Marxism’ has given way to the cult of postmodernism, with its principles of contingency, fragmentation and heterogeneity, its hostility to any notion of totality, system, structure, process and ‘grand narratives’. [From the Introduction. I’m reading on a Kindle and don’t have page cites; Kindle location 89.]

Here’s how Wood describes her project for this book:

… I propose to start from the premise that the critique of capitalism is urgently needed, that historical materialism still provides the best foundation on which to construct it, and that the critical element in Marxism lies above all in its insistence on the historical specificity of capitalism – with the emphasis on both the specificity of its systemic logic and on its historicity. In other words, historical materialism approaches capitalism in a way exactly antithetical to the current fashions: the systemic unity of capitalism instead of just post-modern fragments, but also historicity – and hence the possibility of supersession – instead of capitalist inevitability and the end of History [Kindle location 111.]

We saw this historical approach in both Arendt and in Polanyi. Foucault takes a historical approach as well, visible in several books including Discipline and Punish and The History of Sexuality, and apparently in Security, Territory and Population, though I didn’t get to finish that book. I can’t say what Wood thinks, but I’d guess she isn’t a fan of Foucault or Derrida. I’ll try to figure that out as we go along.

I’m certainly glad I stumbled into this book at this time. It fits my project of trying to understand the origins of neoliberalism and it’s current domination of economic discourse, and I hope it will serve as an entry point for understanding current Marxist thought as well.

[Photo: Annie Spratt via Unsplash]

What Happened To The Cultural Elites: Conclusion

Posts in this series

What Happened To The Cultural Elites: Changes In The Conditions of Production

What Happened To The Cultural Elites: The Capitalist Celebration

What Happened To The Cultural Elites: Entertainment Workers

What Happened To The Cultural Elites: I Just Work Here

Related Post

Symbolic Violence in Neoliberalism This post describes symbolic structures and cultural producers, sometimes called symbolic workers.

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In this series I tried to figure out why the cultural elites didn’t react more strongly to the rise of neoliberalism. When I asked that question in this post I assumed that the cultural elites would see neoliberalism as a threat to their power, especially their ability to reproduce their class without interference because that is the source of their dominance. I got this idea from David Swartz’ book Culture and Power: The Sociology of Pierre Bourdieu. Writing this series has made me question the assumption, and now I think something else happened.

Early in the book, Swartz shows a graph combining economic and cultural capital. The graph indicates that some people hove lots of both, some have lots of one and little of the other, and others have varying amounts of both. The cultural elites might be taken to be the people with the most cultural capital and among them the people with the most economic capital. The justification for this is that as Bourdieu sees it, cultural capital can be exchanged for economic capital, and the people at the top of many cultural fields have done so and become wealthy. The entertainment industry is a good example. University top executives are another good example. It’s less true in some academic fields, but certainly there are many economists who have done so, and people from other fields have too.

In this description, cultural producers are the rest of the people who make a living by employing their cultural capital to create the symbolic structures that people internalize as part of their understanding of society. They are the lower-status academics, lower-ranking employees of the companies that make movies and TV shows, the content producers for newspapers and websites, copy editors and junior ad agency employees, comedy writers for late-night TV shows and sit-coms, most scientists, K-12 teachers and most musicians.

The cultural elites include the top TV and film company executives, top advertising executives, university executives and top editors and publishers of newspapers, and those of similar status in the businesses that produce cultural products. They also include the top individuals who work outside corporations, like top writers, directors, cinematographers, some artists, novelists, scientists and others at the top of their fields. Among this group are the top economists, people like Larry Summers and Gregory Mankiw.

From this perspective, we get to a good explanation for the failure of the cultural elites to oppose neoliberalism. They wound up being winners under the new discourse. They identified their interests with those of the economic elites, not those of the fields that provided them with cultural capital. They used their cultural power to select from the young people in their fields those who supported their views most slavishly, which had the extra benefit of securing and even increasing their wealth. Bluntly, they don’t oppose neoliberalism because they benefit from it.

If cultural producers know what’s good for them, they’ll do the same thing: support the neoliberal project in an attempt to convert their cultural capital into economic capital. That’s particularly true of the younger cultural producers, for the reasons laid out earlier in this series.

There are some groups of cultural producers who can and do safely resist neoliberalism. One group is the people in fields with little potential to convert cultural capital into economic capital, philosophers, musicians and writers, sociologists, anthropologists, and so on. Oh, and content producers who aren’t trying to get rich writing on these subjects.

Another group is those actively trying to replace the current group of cultural elites from the outside, by generating new ideas and theories. One example of this group is the MMT theorists; another is the Open Markets Institute. There are a few film makers, a few TV shows, and even an occasional cable news person who does a bit of resistance.

Finally, there are the young. They are in a good position to see the results of neoliberalism, and may provide the energy needed to move away from the dominant neoliberal discourse. There are new voices in the movies, such as Ava Duvernay, Patty Jenkins (Wonder Woman), and Ryan Coogler (Black Panther), among others, who work with good screenwriters and other film artists. There are others in areas of culture I don’t follow. There are even some new aspiring politicians, many inspired by Bernie Sanders. I guess we can hope.

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That concludes my reading of David Swartz’ book. I’m still reading Bourdieu’s Distinctions, but it’s tough going and maybe not of general interest. I’m also reading How Will Capitalism End? By Wolfgang Streeck, a German Economic Sociologist. I’m thinking about making that the next book, but it’s so depressing I could barely find a bit of hope for the last paragraph of this series. We’ll see.