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The Return of Predatory Capitalism 4 ñòðàíèöàdid get some rights. It caused total hysteria in the business community. They thought they had the whole country by the throat, and they learned that they didn’t. They immediately started a counterattack. It was on hold during the war but took off right afterwards, with huge campaigns. There was a nice phrase that one of the corporate leaders used. He said there is “an everlasting battle for the minds of men” and we have to win it. They put billions of dollars into this. In the early 1950s, when all this stuff took off, business-made movies were reaching twenty million people a week. It was a huge campaign. They had what they called ‘‘economic education programs’’ to teach people what we want the truth to be. They forced workers in plants to go to them. It was called “released time.” They had to go to these courses. There were millions of pamphlets distributed. About one-third of the material in schools was produced by the business communities. Churches and universities were also targeted for subversion. Even sport leagues were taken over. The huge entertainment industry was enlisted in the cause. For business, it was a deadly serious matter. The anti-communist crusade was tied up with this. That’s its true meaning. It was a way of using fear and jingoist sentiments to try to undermine labor rights and functioning democracy. The labor bureaucrats played their own role in this. Business was worried at the time. By the end of the Second World War the U.S. population had joined the general social democratic currents sweeping the world. Almost half the work force thought that they’d do better if the government owned factories than if private enterprise did. The unions in the late 1940s were calling for worker rights to look at the books and intervene in management decisions and to control plants; in other words, to try to democratize the system, which is a horrifying idea to pure totalitarians like business leaders. So there was a real struggle going on. It worked through the 1950s, largely driven by anti- communism. During the 1980s the unions were really crushed. There was a series of Caterpillar strikes. The first one was critical, because it was the first time the government endorsed the hiring of what they called “permanent replacement workers,” in other words, scabs in manufacturing industry. The U.S. was condemned by the International Labor Organization for that, which was extremely unusual. The ILO is a very conservative organization and they don’t offend their big funders. But they did call on the U.S. to adhere to international labor standards. Maybe Robert Siegel reported it on NPR. That was a major event. This is the next stage. They now feel, because of these developments in the international economy, business tastes blood, they think they can roll back the whole social contract that’s been developed over the past century through popular struggle: labor rights, human rights, the rights of children to have food, anything other than making profit tomorrow. It’s important to remember that we don’t have a capitalist economy, because such a thing couldn’t survive, but it’s quasi-capitalist, so there are market forces and competition. In such a system you’re driven to very short-term goals. Part of the nature of that kind of system is you can’t plan very far. You want to make profit tomorrow. If you don’t show a good bottom line tomorrow, you’re out and somebody else is in. The result is they destroy themselves. That’s one of the reasons why business called for government regulation a century ago, when they were playing around with laissez-faire. They quickly saw that it was going to destroy everything. So much of the regulatory apparatus was put in under business control. But now they’re more fanatic and they want to destroy the regulatory apparatus. It’s clear what that’s going to mean. The timing was almost delicious. Last December, when the Republicans were announcing their moves to try to eliminate and demolish the regulatory apparatus by a variety of methods, which is what they’re planning to do, right at that time there was a series of reports that came out about some of the effects of having done this in the 1980s. One of the most striking was right here in New England: Georges Bank, which has been the richest fishing area in the world. They had to close a lot of it down. Now New England is importing cod from Norway, which is like Australia importing kangaroos from Turkey. The reason they’re doing it is that Norway preserved its fishing grounds. They have a different “philosophy,” as they put it here. Our philosophy is to rob everything as much as possible and forget about tomorrow. Their philosophy is to consider the needs of the population, now and in the future. What happened is that the government combined subsidies to the fishing industry with deregulation. You know what that’s going to mean. You pay off people to deplete fish resources and you don’t regulate what they do and they deplete them. In fact, they’ve depleted ground fish. Whether they will recover or not nobody really knows. Scientists don’t know enough about it. But maybe they’ve destroyed the richest fishing area in the world forever, or maybe somehow it will be able to recover. This came out at the same time that they were announcing further cutbacks in regulation. Then along comes the Mexican collapse. It’s another example. Deregulate everything, enrich the rich, which is what privatization is, and you can see what’s going to happen. And if something goes wrong, turn to the public for a bail-out, because “capitalism” requires privatizing profit but socializing cost and risk. Incidentally, in the same weeks, NASA came out with new satellite data announcing the best evidence yet, for a rise in sea level, which means the effect of global warming. They also announced in the same satellite data, that they traced the effect of the depletion of the ozone layer to industrial chemicals. That comes out at the same time that they’re saying, Let’s cut back the last residue of regulatory apparatus. But it makes a certain sense if the sole human value is making as much wealth as you can tomorrow. You don’t care what happens down the road and you don’t care what happens to anybody else. It makes perfect sense. If it destroys the world, well, it’s not my problem. DBWe hear these horns and things in the background. Is this office over a railroad track? It’s actually a change from the way it once was. When I got here in the 1950s it was an industrial area. The industrial plants have been wiped out. The working-class living areas have been leveled. But at that time we were between a leather factory, a tire-burning factory, a chocolate factory, and a soap factory. Depending on which way the wind was blowing, you had a nice combination of odors. Now it’s mostly government-supported high tech small industries. There are very few trains around. The reason is that the U.S. government carried out probably the biggest social engineering project in history in the 195Os, pouring huge amounts of money into destroying the public transportation system in favor of cars and airplanes, because that’s what benefits big industry. It started with a corporate conspiracy to buy up and eliminate street railways and so on. The whole project suburbanized the country and changed it enormously. That’s why you got shopping malls out in the suburbs and wreckage in the inner cities. It was a huge state social engineering project. It’s continuing. For example, a couple of years ago, Congress passed the Transportation Subsidy Act to give the states money to support transportation. It was intended to maintain public transportation and also to fill potholes in the roads. But the figures just came out, in the same month of December, and it showed something like ninety-six percent of it went to private transportation and virtually nothing to public transportation. That’s the point of getting things down to the state level. Big corporations can play around with governments these days, but state governments they can control far more easily. They can play one state against another much more easily than one country against another. That’s the purpose of what they call “devolution,” let’s get things down to the people, the states. Corporations can really kick them in the face, and nobody has a chance. So the idea will be that you get block grants that go to the states, no federal control, meaning no democratic control. It will go precisely to the powerful interests. We know who they are: the construction business, the automobile corporations, and so on. Meaning whatever there is of public transportation is very likely to decline. Yesterday’s New York budget is a striking example. It doesn’t say it, but it implies increasing the fares for public transportation and decreasing service, while making sure that the guys in the limousines are doing quite fine. So you hear a couple of freight trains in the background, but unless they can be shown to serve private power, they’re not going to be around long. Incidentally, one of my favorite remarks in diplomatic history is in a great book on Brazil by a leading diplomatic historian, also senior historian of the CIA, who describes with enormous pride how we took over Brazil in 1945 (Gerald Haines, The Americanization of Brazil). We were going to make it “a testing area” for “scientific methods” of development in accordance with capitalism. We gave them all the advice. He’s very proud of this total wreckage, but who cares? Brazil had been a European colony, so their railroad system was based on the European model, which works. Part of the advice was to switch it over to the American model. If anybody has ever taken a train in pre-Thatcher England or France and then in the U.S. they know what that means. But he said this with a straight face. Another part of their advice was to destroy the Amazon. DBWhen you were in Chicago in October, a woman in the audience asked you, in a pretty straight-ahead question, how come you don’t factor gender into your analysis? You pretty much agreed with her, but you really didn’t answer her question. In fact, I’ve been writing about it quite a bit in recent books in connection with structural adjustment, globalization of production, and imposition of industrialized export-oriented agriculture. In all cases, women are the worst victims. Also in some of these latest articles. What we discussed the other day about the effect on families is essentially gender war. The very fact that women’s work is not considered work is an ideological attack. As I pointed out, it’s somewhere between lunacy and idiocy. The whole welfare “debate,” as it’s called, is based on the assumption that raising children isn’t work. It’s not like speculating on stock markets. That’s real work. So if a woman is taking care of a kid, she’s not doing anything. Domestic work altogether is not considered work because women do it. That gives an extraordinary distortion to the nature of the economy. It amounts to transfer payments from working women, from women altogether and working women in particular, to others. They don’t get social security for raising a child. You do get social security for other things. The same with every other benefit. I maybe haven’t written as much about such matters as I should have, probably not. But it’s a major phenomenon, very dramatic now. Take these latest New York welfare plans again, or the ones they’re thinking about in Congress. One of the things they’re going to do is to force women under twenty-one, if they want to get welfare, to live with their families. Take a look at those women. A substantial percentage of them have children as a result of either rape or abuse within the family. These advocates of family values say either you send your kid to a state orphanage or you live with a family which may be an abusive family and may be the source of your problems. But you can’t set off on your own and raise children, because that’s not work. That’s not a life. You have to get into the labor market. All of this is a major phenomenon in contemporary American affairs and in fact in the history of capitalism. Part of the reason why capitalism looks successful is it’s always had a lot of slave labor, half the population. What women are doing isn’t counted. DBI’ve never heard you, for example, use the term “patriarchy.” While not wanting to hold you to the fire with particular terms, is it a concept that you’re comfortable with? I don’t know if I use the term, but I certainly use the concept. If I’m asked about what I mean by anarchism, I always point out that what it means is an effort to undermine any form of illegitimate authority, whether it’s in the home or between men and women or parents and children or corporations and workers or the state and its people. It’s all forms of authority that have to justify themselves and almost never can. But it’s true. I haven’t emphasized it. DBAre there any books by feminists that you read and value? I sort of read it. What I read I sort of know, so I’m not learning anything. Maybe other people are. It’s worth doing. I think it’s had a very positive effect on the general culture. But unless you call things like Hewlett’s UNICEF study of child care feminist literature—which I wouldn’t, I’d just call it straight analysis—no, I don’t know it very well. DBRussia has been a great success story. The military attacked the Parliament and it managed to win that battle, but what about the awesome display of Russian military might in the Chechen republic? My view has long been that the Cold War was in large part an aspect of the North-South conflict, unique in scale but similar in its basic logic. With its end, it is therefore not surprising to find that Russia is largely returning to the Third World where it belonged and where it had been for half a millennium. Right after 1989 not only Russia but most of Eastern Europe goes into free fall, returns to Third World conditions. The old Communist Party is doing fine. They’re happier than they ever were. They’re richer than they ever were. Inequality has grown enormously. The leadership is mostly the old nomenklatura, the guys the West always liked and want to do business with now. UNICEF just did a study just on the human effects of the so-called reforms, which they approve of, incidentally. They estimated that in Russia alone there were about half a million extra deaths a year by 1993 as a result of the reforms that we’re so proud of. That’s a fair degree of killing, even by twentieth-century standards. The same leadership is in control. Take Yeltsin, for example, whom the West favors. He’s a tough old party boss and knows how to kick people in the face. There’s the rise of a huge mafia, like every other Third World country we take over, starting from southern Italy in 1943, but in fact all through the world, there’s a major mafia. Incidentally, Mexico, too. In Mexico under the economic miracle the government is increasingly linked up with cocaine cartels. Jeffrey Sachs made his fame, this guy who goes around telling countries how to save themselves, by the economic miracle in Bolivia. But what’s usually only pointed out in the footnotes is that Bolivia stabilized its currency all right, but mostly by shifting to cocaine exports, which is perfectly rational under the advice that he gave them of becoming an agro exporter. It’s happening in the former U.S.S.R., too. Huge mafia, spreading to the U.S. because there are plenty of immigrants here. Selling off resources. In Kazakhstan there are a lot of resources and there are American businessmen all over the place trying to buy up the oil. If a country that’s that well-behaved wants to carry out massacres, the U.S. isn’t going to object. The U.S. hasn’t tried to prevent the Chechnya massacres, any more than it did Saddam Hussein’s gassing of Kurds. DBHere I am with this barrage of questions partly written out. I’m dealing with a loaded deck and you’re just sitting there. It’s like Russian roulette, in a way. You don’t know what’s coming next. Are there ever any moments where you’re thinking, He’s really missing the point. Why doesn’t he ask that? Your questions are so perfect, how could I think that? DBYou’re impossible! Any sense of maybe cutting down on your public speaking schedule? Actually, I have to cut down a bit this spring because I have some extra teaching. I’ve doubled the teaching that I usually have. But not in general. I have to think about what I’m going to do for the next couple of years anyway. Retirement age isn’t that far away. But I’ve had too much to do to think about the future. DBIn all these talks that you’ve given, you must have reached hundreds of thousands of people, your articles, the interviews, the radio, the TV. It must put a tremendous, not just a physical burden on you, but an emotional one, too. Everything is riding on your shoulders. I’m concerned about that, just as a friend. I don’t feel that way at all. I feel I’m riding on other people’s shoulders. When I go to give a talk in Chicago, say, I just show up. They did all the work. All I did is take a plane, give a couple talks, and go home. The people there did all the work. I just came back from Australia. Those guys have been working for months to set everything up, and they’re still working. I went, had a nice time, talked at a bunch of places. I’m exploiting other people. Actually, it’s mutual exploitation. I’m not trying to be modest about it. There are some things that I can do pretty well. Over the years I’ve tried my hand at a lot of things. DBLike what? I did spend a lot of time, believe it or not, organizing and going to meetings, like in the early days of Resist, of which I was one of the founders. I religiously went to all the meetings and sat there and was useless and bored. Finally, out of all this a kind of division of labor emerged by mutual consent. We would all do the things we can do. There are some things I just can’t do at all and other things I can do very easily. I do the things I can do easily. But the serious work is always done by organizers. There’s no question about that. They’re down there every day, doing the hard work, preparing the ground, bringing out the effects. There is absolutely no effect in giving a talk. It’s like water under a bridge, unless people do something with it. If it is a technique, a device for getting people to think and bringing them together and getting them to do something, fine, then it was worth it. Otherwise it was a waste of time, self-indulgence. DBSpeaking of resistance, what forces can resist the right-wing onslaught? An overwhelming majority of the population is very strongly opposed to everything that’s going on. The question is, can they be successfully diverted and dissolved and separated from one another? We talk about having to teach lessons in democracy to Haiti. Anyone with a grey cell in their head would laugh and collapse in ridicule at that. We have to learn lessons in democracy from Haiti. Here’s a country in miserable conditions, worse than anything we can imagine, with a population that was able on their own effort to construct a lively, vibrant, functioning civil society with unions and grassroots organizations and, without any resources, to sweep their own president into power and create an actual democratic society. Of course, it was smashed by force, with us behind it. Nobody’s going to smash us by force. But if we could learn the lessons of democracy from Haitian peasants, we could overcome these problems. DBWhy don’t we end here and maybe you can make some headway on these piles. OK. (Chuckles)
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