(also up at Orange and Voices on the Square)
Every once in a while the “alternative Internet” features pieces which reveal in full clarity why we get so little out of the political system. Two of these were published yesterday:
1) Gabriel Kolko’s piece in Counterpunch (“The New Deal Illusion” — 8/29/12) largely discusses the New Deal as a set of ideas germinating under Herbert Hoover and achieving some degree of fruition under FDR. It would seem that none of this stuff was ultimately successful in ending the Great Depression. Kolko says of Hoover:
The Depression was more than a match for him, and it proved more than a match for Roosevelt. Basically, it was the Second World War that got the U. S. out of the Great Depression completely.
Kolko criticizes the commonly-held, simplified version of history that credits the Democrats for the New Deal as follows:
The problem–among others– is that the general political community rarely reads their rather detailed academic monographs. But the persistence of the notion that somehow the Democrats are somehow better than Republicans is also related to the fact that the GOP more often falls under the sway of yahoos, making the Democrats seem less objectionable.
Of course, one can object to Kolko’s portrayal of history by noting that both the Great Depression and World War II were periods in which Democrats controlled the White House, and that we currently are in a period in which yahoos control the Republican Party. But there’s more at stake here than Kolko’s efforts to put the Democrats in their places as members of a “conservative” party. The overarching problem foregrounded by Kolko is one of the limits of social technology:
Until the war had begun. WPA or not, unemployment remained very high. By 1939 the New Deal’s social technology was exhausted and there was only a confused debate between Democrats about the virtues–or lack of them–of laissez faire and competition versus the panoply of ideas behind “planning“ and control of competition.
World War II brought the sort of economic restructuring necessary to end the Great Depression, while at the same time extending the lifespan of the (global) capitalist system. Of course the Republicans wouldn’t have done any better had they been in power.
Here I’d like to point out the interaction between politics and the capitalist system, using my interpretation of Kees van der Pijl’s history of capitalism (in a diary I wrote back in ’06). I conceived of four stages of capitalism: a) agricultural capitalism, b) industrial capitalism, c) consumer capitalism, and d) neoliberalism.
In this interpretation, the Great Depression appears as an interim period between stages b) and c), when the contradictions of industrial capitalism had come to a head yet the heyday of consumer capitalism was yet to come. Kolko’s history points out that the politicians of our capitalist democracy appear to be “going along for the ride” when foregrounded as actors in the history of capitalism. They protect the capitalist system and have some effect in mitigating its most serious crises, but that’s all they do.
2) A further elucidation of the limitations of our politicians also appeared yesterday in Matt Stoller’s piece in Naked Capitalism, “Why The Big Issues Are Missing From The 2012 Race” (8/29/12). Stoller’s argument is that politicians care about getting elected and re-elected, but not as a first priority. The political class’s first priority is retaining the perks it is granted for its performance of services for those with the money to pay for them. Here’s how he phrases it:
…most US politicians by and large would like to win elections, but they aren’t going to jeopardize a future revenue stream or even their membership in the club of the global elite to do so. This is true for all parts of the political ecosystem, from politicians to staffers to campaign operatives to pollsters to consultants. While losing a race isn’t fun, if you rock the boat and lose, you’re done.
This, then, explains the conservative nature of governance in this era. The political class in America is as uniform as the sources of money which fund its collective life ambitions, from private careers to public careers to retirement. When I mock the popular notion that Barack Obama is some kind of leftist, I am merely holding Obama up as an example of the uniformity of the system’s political class. There are antipublic conservatives and corporate conservatives, and what they agree upon is conservatism. There’s a website for it now, Obama the Conservative, which is mostly fair, and unfair mostly in its singling out of Barack Obama in a sea of political conservatism.
Once again, now in the age of neoliberalism, the politicians of today’s capitalist democracy can be seen as “going along for the ride” when foregrounded against the history of capitalism. Since, however, the golden age of capitalism has come and gone, leaving behind a consumer society in decline, we appear to have a rocky road ahead. A terminal crisis for the capitalist system will at some later point become once again a thinkable proposition.



38 Comments

Comrade, someone took the lesson of WWII to capitalism – to use crisis to capitalist advantage. That’s the origin of permanent warfare. Given the ecological limits, the politician’s Potempkin villages are only delusions that we are not in the terminal crisis already. Yes, things would get worse when more people see through he delusions (will we be so lucky?) and that probably would be the signal transition. But the real leaders are already in terminal mode.
Ludwig, it won’t be fully apparent when we’re in the terminal crisis of capitalism until we come through it and we’re in something other than capitalism. Until then, we can assume that a terminal crisis is pending in order to motivate ourselves to look elsewhere, and give up relying on the political class and the capitalist system as any sort of solution to our most pressing problems.
Permanent warfare allows the current regime of “global governance” to use the US Armed Forces as its proxy enforcement device. It no longer “saves the economy” in the way in which World War II once inaugurated the Golden Age of Capitalism (1948-1971).
Interestinig diary that opens upon not so well known causes and effects of the 1920′s and 1930′s. Thank you Cassiodorus.
Recommended.
The 1920′s were adventurous years for Americans who were exploring the new realms of technology in communication via electric powered devices and concepts of radio broadcasts and broadcasting. Talking movies came into being during this period. For those at the top of American social and economic ranges the 1920′s were indeed roaringly good. For poor Americans and minority populations of Americans the 1920′s were a mixed bag at best and much of the time these Americans were seeing the worst of America and early economic/society tastes of what only the Crash of 1929 brought to a wider swath of upper class Americans.
Herbert Hoover was not an incompetent American despite having been branded as such in American pop history.Hoover had a long and great public service record which largely is what led to Hoover becoming POTUS in early 1929.
Herbert Hoover was a graduate of Stafford,a trained engineer and actually had some legitimate credentials as a international and national American humanitarian and competent public servant reaching back to the early days of WW1 breakout and spanning the Harding and Coolidge WH regimes. Herbert Hoover was in many ways not what G.W.Bush or B.H.Obama were or are as POTUS. Hoover also was a man of his times where American bigotry,racism and class discrimination were considered quite normal practices. Hoover made some bad political deals leading up to his becoming POTUS.1929 took place and despite Hoovers efforts 1932 also took place with FDR taking Hoover out of the WH.
Herbert Hoover went on to have a long public service centered post WH career. One can safely say we would have been lucky as Americans if G.W.Bush had been anything close to a Herbert Hoover as POTUS. As for B.H.Obama and his time in the WH it is not possible to overlook the cruelty Obama seems comfortble inflicting on humans while giving comfort to the already comfortable. B.H.Obama so far has proved to be no Herbert Hoover or Franklin Delano Roosevelt in character or conduct.
Herbert Hoover was branded by history unfairly but in view of the American who followed Hoover into the WH it is likely this was unavoidable. FDR was not perfect to be sure nor was FDR without some flaws but Americans were lucky FDR was POTUS during the 1930′s.
WW2 was largely the resumption of WW1 with new weapons,new tactics and greater willingness to kill humans trying to win victory coming out of Germany,Japan,the Soviet Union,the United States and allies on both sides. Empires were being contested,economic and militarism hegemonies were being contested. The toll on innocent humans was horrific. So much of this due the political failures of WW1,the interwar decades of the 1920′s and 1930′s and the technological advances of war machines and warmaking of the 20′s and 30′s. WW2 did finally usher in atomic weapons. We humans have been now warned.
Here in the early 21st century we are seeing the same patterns that can be traced back one,two or three decades.
Nothing then is very new under the sun. Humans still dying and being killed for very wrong reasons.
The main point of my diary is that, even when it accepts into its ranks bright people like Herbert Hoover or Barack Obama, the political class of a capitalist state like the US is merely “going along for the ride” when it comes to affecting the trajectory of the capitalist system.
Obama is an especially curious version of the intelligent human being, in that on the one hand you have the overall record:
http://www.obamatheconservative.com/
and then his political speeches contain occasional gems such as this one:
http://youtu.be/sV3w7OD2pDs
Who else could sell Angela Davis on policies that were to the right of George W. Bush’s?
Spelling correction — Stanford University
Interesting trait of humankind indeed to tell/sell stuff done with no or little regard to integrity/legitimacy or the truth of things.
Used car salesmen having polished this trait to high levels since the advent of used cars here in the United States.
Politicians certainly often not giving much away to the Used Car Salesman as seen with what is said,declared,claimed and promised by politicians who then go on to ignore or deny having said/done any such thing. Willful delusion,self delusion and wanting to see mirages of hopes and dreams not there surely at play with/in this being so.
The Enron Debacle has large amounts of this conduct woven into how Enron was promoted,sold and oversold time and time again.
Barack Obama could have been first great 21st century POTUS. Pity Obama has not been and appears quite set on not being a great POTUS.
Republicans vs Democrats = Christian Fascist vs Secular Fascist
Fascist authoritarianism functions under the rubric of capitalism. Therefore our narcissistic leaders will not rule in favor of taking money out of their investment portfolios, nor will any sitting politician in this day and age will make legislation to that effect.
Unfortunately the greed and myopia that infects our leaders is imbued into our larger human society thus making sociopathic behavior accepted as normal and a rigid belief in a system that is literally destroying the environment as rational.
Comrade, the elite have foresight, and I will practice mine. Furthermore, I don’t think we should demean fellow comrades assuming they follow the aphorism of the asshole Herbert Stein, “If something cannot go on forever, it will stop.” Whether it is or is not in terminal phase is irrelevant to ending it.
Permanent warfare, like all political policies, satisfies many interests, including the one I had most in mind, suppression of dissent. It certainly does save their economy as well as suppressing the dissent which ought to arise given the horror capitalists must now inflict. It is no surprise that terrorizing your own population would result in this phase.
So, wouldn’t you say O’Bummer was well chosen?
And it points to the necessity of scripting the vicious antagonists in this production. O’Bummer cynically talks up the liberal virtues and the Kwistian fascists obviate his having to rule by them. My point here is not to delve into O’Bummer’s psychology but to point out how well a neocon philosophy – the necessity of elite misrepresentation in a world which cannot afford fair play – fits in this capitalist decadence. IOW, liberalism’s engine is dead, so the elite consensus is a new conservatism which must pretend to the liberals and respond to the reactionaries.
Exactly. Like lambs to the slaughter. Now why is it that intellectuals won’t admit there’s good reason to be anti-intellectual?
A quibble first:
I realise that you are using “conservative” in the American sense of the word. Nevertheless there is nothing conservative either about your ruling class or the politicians that serve them. They’re a mix of 19th century economic liberals and radical right-wingers.
mfi
Having disposed of my quibble – I’d be interested in you expanding your point about neoliberalism. Very high military expenditures were a feature of 19th century liberal Britain. Not surprising as it was under the liberals that Britain became an imperial power. I would argue that imperialism, and militarism, are facets of 19th century liberalism. Your thoughts?
mfi
Interesting. Your starting point is conventional conservative analysis of the New Deal. Almost Amity Shlaes-like. But you end up with a quite different prescription for action. And you understate how much was FDR trying to co-opt the labor movement and socialists in the face of the Dixiecrat wing of the Democratic Party, which liked the farm aid but not the threat of prosperity to segregation.
As in the current administration, FDR’s search was for the political center when things were in rapid transition. And seeking to save capitalism for the very people who sought his murder as a “traitor to his class”. Again, pragmatic.
Yes, the golden haze that most Democrats view the New Deal through is an illusion, but one fostered by their parents’ and grandparents’ gratitude for the “peace and prosperity” that came out of World War II. Illusions beget illusions.
Kolko is somewhat of a renegade socialist as historians go. His version of history here is a bit bent — Hoover was opposed to some aspects of the New Deal, so to credit him with New Deal ideas (as Kolko does) is kind of ironic.
If you look at the record, Hoover was a president who was in fact hamstrung by his Congress from organizing the sort of relief that he organized for Americans returning from Europe after the beginning of World War I. But he was reluctant to use government to do much of anything.
Imperialism and militarism are inherent to civilization organized as a large-scale institution. Whether militarism is inherent to human society is up for debate as there has never been a society studied that has not had contact with some empire or another. Capitalism merely changes who the imperial military serves from a single political household to an economic oligarchy.
Recommended.
WWII did indeed takes out of the great depression. It was in fact State Capitalism not much different than was practiced in the Soviet Union. And do not forger the the so called Cold War – of which NASA and the Space Program as a integral part – was a continuation of this. The consumer capitalism as you called it was successful partly do to this. If you check you will find the the biggest consumer corporations were also the biggest military and defense contractors as well.
Add to that after WWII they had the consumer market all to them selves with Europe and Asia in ruins after the war.
My take on the New Deal was that it was mostly – it not entirely – a psychological boost to the country’s moral. Any up turn in the economy before WWII was primarily do to FDR’s increase in military spending to prepare for a war he new we would be part of and wanted.
Apaprentlythe citizenry in Spain is at the point where the realize what it means tlo have perpetual war against the perpetually multiplying “terrorists. I jsut caught the really neat video put out by the Spanish group, Manu Chao. They ahve two versions, of the same song. The one I prefer has a Ronald McDonald type clown in the center of a big cartoon globe, and he is shooting people that appear with their national flags, on the large wheel of a globe, arcade style.
Today it is this country, tomorrow it is that one. Perpetual war treats all people equally except for those living in the gated enclaves of the One Percent, be that in the favored seaside grottos of Thailand, or upscale communities in San Francisco California or Homewood/Flossmoor Illinios. And lower class Americans can be shot out arcade style too. Just think of what happened in Anaheim Califonria a month back.
I have heard it said that the Dems stalled deliberately with regards to letting Hoover do a New Deal style of approach to the problem. So they could win big in 1932. I don’t know – it was certainly a good two decades before I was around.
One other thing to consider in all this, is that leading up to the most prosperous decades taht our society has experienced – Dwight Eisenhower saw to it that as President, he had COngress put in place the spending for the nation’s highway system. An enormous project, wherein the two lane roads common in the nation were replaced with the four lane (and more) interstate freeway system. Then he also saw to it that funding put in the community hospitals – one in every region of the nation. Community colleges so the returning GI’s had places to attend and earn their degrees, using the GI bill.
With these programs in place, so many Americans were working that the average family could mover from cramped apartments to much larger houses. Those moves further fueled the economy. Times were good, and while all this happened, the “Negro” portion of the society realized that they were being left behind. So began two decades of Civil Rights struggles. The rest is history.
I’ve enjoyed reading this brilliant diary and everyone’s thoughtful comments, but none of you realize that where we are now, began in “2006″, and it’s been like that last fast downhill run on a roller coaster, and you saw it with your own two eyes.
Here is what you saw in your “neighborhood”. In 2005, the shopping mall that you went to had many stores, and there were businesses in the strip malls. There were few boarded up houses in the “lower middle class” neighborhoods.
In 2006, the “interest rate bubble” burst. You have been misled into calling it the “housing bubble”. Ben Bernanke popped that balloon when he raised the interest rate. That would not have affected so many people “normally”, because “normally” people would have had 30 year loans; this meant their payment would remain the same regardless how high the rate was raised, but predatory people came up with an idea to seduce people into predatory loans. This is presented as “black” people buying homes they couldn’t afford. Those people were not told the payment they agreed to could double. No one would agree to buying a home that “guaranteed” foreclosure when the payment doubled and they wouldn’t be able to pay.
In 2008 gasoline went to over $4.00 at the pump, and this occurred again in 2011 and 2012. The price of food also increased dramatically at this same time. Before this time, gasoline had not been much over $1.00 a gallon at the pump. Absolutely no one seems to realize how that affected the economy of this country, although you don’t have to be an economist to see the affects. Just ask yourself about the shopping malls and the number of small businesses that you knew about which are no longer in business.
Middle class “wealth” vanished since 2006. The only real “wealth” in most middle class families is “the house”. When I say families, I mean extended family; like “uncle Jake” who owns that beautiful ranch home. When uncle Jake goes to the “great beyond”, he leaves behind, that beautiful ranch home, that was worth a lot of money and could be sold in a heartbeat in 2001; but now it just sits there, and the new owners who inherited “uncle Jake’s” beautiful ranch home have to maintain two houses because there are not enough buyers. While there are just as many “desire-ers” there are not enough buyers.
If you go to this website http://wp.me/p2vRlu-4 you will see commodity charts which correspond to what I’ve written. Those charts are a record of what you paid for food an gas.
Let me clarify and elucidate my post; everything everyone has stated is quite accurate, it’s just that no one seemed to realize the magnitude of this 6 year “downhill run”.
There is one other way that wealth is being transferred from us to them. The interest on the national debt goes 25% to the Social Security Trust Fund; that’s not the part I’m talking about. The other 75% of the $323 billion for this year goes to foreign countries, corporations, and well-to-do and wealthy individuals. So at a minimum there is a $150 billion upward transfer of wealth a year from us to them.
Now remember that the deficit increased by $6 trillion during the Bush administration and through Congressional inaction has increased by another almost $4 trillion during the Obama administration. And that as the economy improves the interest rate on government borrowing will increase.
And that the part of the debt that the PtB want to get rid of is the entitlement (the 25% that goes to the Social Security Trust Fund). They want to repudiate the debt that is owed to people who paid in payroll taxes in expection of a secure if small pension. That is theft from us to them.
you need be more careful when describing what you believe to be the “alternative” internet.
there are thousands of voices speaking far more truth then you will find at counterpunch.
so saying that “every once in a while” YOU find something informative and accurate hardly equates to what is really going on over at that “alternative” place you (occasionally) visit.
Nice thought provoking piece Cassiodorus. Rec’d
My thoughts are a bit tangential and lengthy; so I’ll just disgorge a Spades diary inspired by da Cass.
And how would that realization change our objectives?
An interesting ambiguity in your elaboration. Do the compradors realize that the reduction in their tax obligations will eventually be restored to the enhancement of the creditors benefit?
Spot on comment ThD…goes and gets to the middle.
Excellent question. While it would not change our objectives, it would change our “awareness”. The CFTC is now controlled by the oligarchs, and that has to be remedied. As long as they can manipulate the price of food and gas, they have us by the “gonads”. I suspect the department of justice is very flaky to.
Objectives require long term plans, the two areas I mentioned need immediate attention. I have, and I still am, doing everything I can to bring everyone’s awareness to how we are being exploited.
Tarheel, the people that lined up as President Roosevelt’s funeral train passed were not seeing the peace and prosperity of the post-Rooseveltian years. They were seeing that a president had passed who cared what was happening to them.
There’s something wrong with the pro-Hoover elements in this post, much as I agree the man was unfairly targeted as being the cause of the Depression. Roosevelt did have a humanity and an appropriate stance for government and against the corporate interests seeking to control it. No comparison to what we have now – he actually cared for the people whose desperation became apparent and who needed the programs he implemented.
They ran up the deficit with their phony wars, and now they want to pay for it with the hard earned cash we paid into SS. “What gall”! That can not be allowed. Their ways of exploiting us are never ending.
And this is why this presidency cannot be compared to Roosevelt’s – not in any way, shape or form. This has been a predatory presidency – Occupy has had it right. FDR’s programs have been systematically dismantled and are promised to be more so. Real wealth in this country, what we hold in common as citizens, is disappearing fast.
The biggest rewriting of history in my view has been that a war economy brings prosperity, when in fact it simply rewards the carpetbaggers, the profiteers – guns and bombs look like Gross National Product when they don’t make anything other than destruction – that was the wrong lesson then, the worst bubble of them all, and Robert F. Kennedy pointed that out in a speech now largely forgotten.
I was driving a large GM built car back in early 2000s — when gas prices took off and were hovering around $2 bucks a gallon…it bites when you have to drive to work and putting 5 gallons of gas in the tank takes $10 bucks…when you are making ten bucks an hour.
Interesting aside for those of us who followed the “Cash For Clunkers” saga is going thru the YouTube archives of the CFC cars and trucks that had perfectly good motors and were nice looking still that were being destroyed. Lots of anger to be found amongst the comments to these CFC YT videos. For poor Americans ( like myself ) it was galling to see very nice vehicles being mindlessly destroyed while we were driving vehicles that were worse looking/more wore out. Lots of anger expressed in these CFC YT videos. I think that anger is still out there and Obama may be feeling some of it in November 2012.
CFC was dubious politically/in concept/as policy.Many poor,hard up Americans surely could have made good use of many of the cars and trucks being turned in for CFC money payouts. CFC was a stupid political gimmick that I suspect many Americans drew a line from CFC to Obama/Pelosi Ds.
It seems to be in order to mark 1975 as the start year for trendline of declining hourly wage rates when adjusted for inflation from that year forward. I came out of High School in early 1970s and this 1975 going forward wage decline as been there my entire working life.
Credit card/home equity loan money was for poor/working poor/pay check to paycheck/month to month just getting along Americans from the 1980′s onwards the money that was making the teeter/totter work.
As you note 2006 may mark another trendline start. Certainly what showed up during 2008 has roots going backwards towards early 2000s.
Again just going to YouTube and typing in Closed Malls/Ghost Town Malls in YouTube search will present one with a large collection of videos on this topic. As will collapsed Detroit,MI and Gary,IN YT searches of buildings,houses and entire blocks going to ruin.
We Americans have no business spending trillions of $$ abroad when the built up infrastructures of 20th century as demonstrated in Detroit,Gary and many other American population centerpoints is falling into neglect,decay and ruin.
POTUS Obama does not talk about this. Romney? Not talking about it.
Instead we get this Libya,Syria,Iran and “Pivot to Asia Pacific” BS.
American Empire/Militarism should be/needs to be taken down.
Sooner. Better.
On your point that
“Obama is an especially curious version of the intelligent human being…”
Let me direct you to Clint Eastwood’s performance at the Republican Convention, where he, correctly I think, points out the disadvantages of electing a lawyer as president.
In ‘The Brothers Karamazov’ one of the distinctions made with respect to the characters of the novel is between clever persons and intelligent persons. I would submit that Obama is more the former than the latter.
To my way of thinking, truly intelligent persons incorporate moral and ethical considerations into all mindful behavior, even at personal cost to their careers. We have had politicians in the past who did this. They are a rare breed today.
Large military expenditure can produce “prosperity”. It’s not the bombs and guns that people “prosper” on, it’s the international extortion, the domestic regimentation and discipline and confidence that pervades all production, the ancillary technological spinoffs, etc. For some additional national deficit the total economic activity can be enlarged more.
But it’s main benefit is to direct capitalist aggression outwards – this has the consequence that the capitalist’s aggression is enlarged also, which debt the domestic population must pay when the expansion of empire falters.
Capitalism rewards the clever, comrade.
People in the “lower middle” were affected much more, and in so many different ways than those with higher incomes, when the price of food and gas shot up. It wasn’t on the news and politicians hardly noticed how hard people in this income strata had been hit.
Houses in their neighborhoods stopped selling. Used cars quit selling, everything the lower middle bought “quit selling”. The excess money they had before, was now going for food and gas. None of this was on the news or mentioned by politicians. It wasn’t until the absence of all that money caused stores in the shopping malls to close was anything mentioned, and even then, it wasn’t attributed to the fact that lower income people had no excess money to spend. Lower income people just flat out do not exist in this society.
Since FDR and JFK are my two favorite presidents, I don’t quite understand what I said that you are replying to.