Tuesday, February 14, 2023

Noam Chomsky: Right-Wing Insurrection in Brazil Held Strong Echoes of January 6

Both cases reveal how fragile representative democracies have become — and we may not have seen the last of such events.

February 5, 2023
Source: TruthOut


The right-wing riot and insurrection led on January 8 by followers of Brazil’s incumbent president Jair Bolsonaro had strong echoes of the January 6 attack on the U.S. Capitol by Trump’s supporters. Like Trump supporters’ mob attack on January 6, 2021, in Washington, D.C., the January 8, 2023, insurrection in the capital city of Brasília grew out of weeks of protests by supporters of an incumbent president who refused to accept electoral defeat in a fall election. Both cases reveal how fragile liberal representative democracies have become in the neoliberal era, argues Noam Chomsky in the exclusive interview for Truthout that follows, adding that we may not have seen the last of such events either in the U.S. or in Latin America.

Chomsky is institute professor emeritus in the Department of Linguistics and Philosophy at MIT and laureate professor of linguistics and Agnese Nelms Haury Chair in the Program in Environment and Social Justice at the University of Arizona. One of the world’s most-cited scholars and a public intellectual regarded by millions of people as a national and international treasure, Chomsky has published more than 150 books in linguistics, political and social thought, political economy, media studies, U.S. foreign policy and world affairs. His latest books are Illegitimate Authority: Facing the Challenges of Our Time (forthcoming; with C.J. Polychroniou); The Secrets of Words (with Andrea Moro; MIT Press, 2022); The Withdrawal: Iraq, Libya, Afghanistan, and the Fragility of U.S. Power (with Vijay Prashad; The New Press, 2022); and The Precipice: Neoliberalism, the Pandemic and the Urgent Need for Social Change (with C.J. Polychroniou; Haymarket Books, 2021).

C. J. Polychroniou: Noam, on January 8, 2023, supporters of former President Jair Bolsonaro stormed government buildings because they wouldn’t accept the defeat of their fascist leader — an event, incidentally, that you strongly feared might take place almost from the moment that Luiz Inácio Lula da Silva won the presidential election. The insurrection of course has raised a lot of questions inside Brazil, as well as abroad, about the role of the Brazilian police, the failure of the intelligence services to warn Lula about what was going to happen and who orchestrated the riots. This was undoubtedly an attempted coup, just like the January 6 insurrection at the U.S. Capitol, and should serve as yet another reminder of how fragile liberal democracies have become in the neoliberal era. Can you comment on these matters?

Noam Chomsky: Fragile indeed. The January 6 attempted coup could have succeeded if a few people had made different decisions and if Trump had succeeded in replacing the top military command, as he was apparently trying to do in his last days in office.

January 6 was unplanned, and the leader was so consumed by narcissistic rage that he couldn’t direct what was happening. January 8, clearly modelled on its predecessor, was well-planned and financed. Early inquiries suggest that it may have been financed by small businesses and perhaps by agricultural interests concerned that their free rein to destroy the Amazon would be infringed. It was well-advertised in advance. It’s impossible that the security services were not aware of the plans. In Brasília itself — pro-Bolsonaro territory — they pretty much cooperated with the marauders. The army watched the coup being well organized and supplied in encampments outside military installations nearby.

With impressive unity that was lacking in the U.S., Brazilian officials and elites condemned the Bolsonarist uprising and supported newly elected president Lula’s decisive actions to suppress it. There is nothing like the U.S. denialist movement in high places. The uprising itself was savage and indiscriminate, as amply portrayed in the extensive TV coverage. The apparent intention was to create sufficient chaos so that the military would have a pretext for taking over and reestablishing the brutal dictatorship that Bolsonaro greatly admired.

International opposition to the insurrection was also immediate and forceful, most importantly of course, that of Washington. According to the well-informed Brazilian political analyst Liszt Vieira, who shared his thoughts with Fórum 21 on January 16, President Biden, while no admirer of Lula, “sent 4 diplomats to defend the Brazilian electoral system and send a message to the military: No coup!” His report is confirmed by John Lee Anderson in a judicious account of the unfolding events.

If the January 6 coup attempt had succeeded, or if its copy had taken place during a Republican administration, Brazil might have returned to the grim years of military dictatorship.

I doubt that we’ve seen the end of this in the U.S. or in “our little region over here” as Latin America was called by Secretary of War Henry Stimson when explaining why all regional systems should be dismantled in the new era of post-war U.S. hegemony, except our own.

The fragility of democracies through the neoliberal era is apparent enough, beginning with the oldest and best-established of them, England and the U.S. It is also no surprise. Neoliberalism, pretensions and rhetoric aside, is basically class war. That goes back to the roots of neoliberalism and its close cousin austerity after World War I, a topic discussed in very illuminating recent work by Clara Mattei.

As such, a core principle is to insulate economic policy from public influence and pressure, either by placing it in the hands of professional experts (as in the liberal democracies) or by violence (as under fascism). The modalities are not sharply distinguished. Organized labor must be eliminated because it interferes with the “sound economics” that transfers wealth to the very rich and corporate sector. Investor rights agreements masked as “free trade” made their own contribution. A range of policies, legislative and judicial, left the political systems even more in the hands of concentrated private capital than the norm, while wages stagnated, benefits declined and much of the workforce drifted to precarity, living from paycheck to paycheck with little in reserve.

Of course, respect for institutions declines — rightly — and formal democracy erodes, exactly as neoliberal class war dictates.

Brazil, just like the U.S., is a deeply divided nation, virtually on the verge of a civil war. Having said that, I believe Lula has a very difficult task ahead of him in terms of uniting the nation and pushing forth a new policy agenda based on progressive values. Should we be surprised therefore if his government falls short of carrying out radical reforms, as many seem to expect a leftist president to do?

I don’t see any prospect of radical reforms, either in Brazil or in the neighboring countries where there has recently been a new “pink tide” of left political victories. The elected leadership is not committed to radical institutional change, and if they were, they would face the powerful opposition of internal concentrations of economic power and conservative cultural forces, often shaped by the evangelical churches, along with hostile international power — economic, subversive, military — that has not abandoned its traditional vocation of maintaining order and subordination in “our little region over here.”

What can realistically be hoped for in Brazil is carrying forward the projects of President Lula’s first terms, which the World Bank in a study of Brazil called its “golden decade,” with sharp reduction in poverty and significant expansion of inclusiveness in a dramatically unequal society. Lula’s Brazil may also recover the international standing it achieved during his first terms, when Brazil became of the most respected countries in the world and an effective voice for the Global South, all lost during the Bolsonaro regression.

Some knowledgeable analysts are still more optimistic. Jeffrey Sachs, after intense discussions with the new government, concluded that growth and development prospects are favorable and that Brazil’s development and international role could “help reform the global architecture — including finance and foreign policy — for the benefit of sustainable development.”

Of paramount importance, not just for Brazil but for the whole world, would be resuming and extending the protection of the Amazon that was a highlight of Lula’s first terms, and that was reversed by Bolsonaro’s lethal policies of enabling mining and agribusiness destruction that were already beginning to turn parts of the forest to savannah, an irreversible process that will turn one of the world’s greatest carbon sinks into a carbon producer. With the dedicated environmentalist Marina Silva now in charge of environmental issues, there is some hope of saving this precious resource from destruction, with awesome global consequences.

There is also some hope of rescuing the Indigenous inhabitants of the forests. Some of Lula’s first actions on regaining the presidency were to visit Indigenous communities that had been subjected to the terror unleashed by Bolsonaro’s assault on the Amazon and its inhabitants. The scenes of misery, of children reduced to virtual skeletons, of disease and destruction, are beyond words to describe, at least mine. Perhaps these hideous crimes will come to an end.

These would be no slight achievements. They might help lay a firmer basis for the more radical institutional change that Brazilians need and deserve — and not Brazil alone. A basis is already there. Brazil is the home of the world’s largest left popular movement, the Landless Workers Movement (MST), which takes over unused lands to form productive communities, often with flourishing cooperatives — to be sure, not without bitter struggle. The MST is establishing links with a major urban left popular movement, the Landless Worker’s Movement. Its most prominent figure, Guilherme Boulos, is close to Lula, representing tendencies that might be able to forge a path beyond the incremental improvements that are desperately needed in themselves.

The left, no matter where it comes to power, seems to fall short of expectations. In fact, often enough, it ends up carrying out the very neoliberal policy agenda that it challenges while in opposition. Is it because neoliberalism is such a formidable foe, or because today’s left lacks both a strategy and a vision beyond capitalism?

There has long been a lively left culture in Latin America, which the northern colossus can learn from. The internal and external barriers, which are formidable quite beyond their neoliberal incarnation, have sufficed to constrain hopes and expectations. Latin America has often seemed on the verge of breaking free from these constraints. It might do so now. That could help propel the developments towards multipolarity that are apparent today and that might, just might, open the way to a much better world. Entrenched power, however, does not just melt away.

We speak of political crises, economic crises and an ecological and climate crisis, among others, but it seems to me that we should also be talking of a humanity crisis. By that, I mean we may be on the verge of the dawn of an anti-Enlightenment era, with capitalism and irrationality having gone berserk and being at the root of a widespread ontological transition. Do you have any thoughts to share on this matter? Are we confronted with the possibility of the rise of an anti-Enlightenment era?

We should bear in mind that the Enlightenment was not exactly a bed of roses for most of the world. It was accompanied by the unleashing of what Adam Smith called “the savage injustice of the Europeans,” a horrific onslaught against most the world. The most advanced societies, India and China, were devastated by European savagery, in its latter stages the world’s most awesome narcotrafficking racket, which ravaged India to raise the opium that was rammed down the throats of China by barbarians led by England, with its North American offshoot not far behind, and other imperial powers joining in what China calls the century of humiliation. In the Americas and Africa, the criminal destruction was far worse, in ways too well-known to recount.

There were lofty ideals, with limited though significant reach. And it is true that they have been under severe attack.

The fact that unrestrained capitalism is a death sentence for humanity can no longer be concealed with soothing words. Imperial violence, religious nationalism and accompanying pathologies are running rampant. What is evolving before our eyes raises in ever starker form the question that should have struck all of us with blinding fury 77 years ago: Can humans close the gap between their technological capacity to destroy and their moral capacity to control this impulse?

It is not just a question, but the ultimate question, in that if it does not receive a positive answer, and soon, no one will long care about any others.

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Noam Chomsky
Noam Chomsky (born on December 7, 1928, in Philadelphia, Pennsylvania) is an American linguist, philosopher, cognitive scientist, historical essayist, social critic, and political activist. Sometimes called "the father of modern linguistics", Chomsky is also a major figure in analytic philosophy and one of the founders of the field of cognitive science. He is a Laureate Professor of Linguistics at the University of Arizona and an Institute Professor Emeritus at the Massachusetts Institute of Technology (MIT), and is the author of more than 150 books. He has written and lectured widely on linguistics, philosophy, intellectual history, contemporary issues, and particularly international affairs and U.S. foreign policy. Chomsky has been a writer for Z projects since their earliest inception, and is a tireless supporter of our operations.

How Worker Ownership Builds Community Wealth And A More Just Society

Community wealth building initiatives are taking hold in cities across the world, strengthening worker pay, local economies and democracy.
February 4, 2023
Source: Originally published by Z. Feel free to share widely.

An Evergreen laundry worker. (Evergreen Cooperatives)

A recent help-wanted ad for a laundry worker in Cleveland contained some unusual language, asking prospective candidates: “Have you ever wanted to work for a company that is 90 percent employee-owned? What about a company that offers a program to help you become a homeowner?” The ad went on to identify Evergreen Cooperative Laundry as the only employee-owned commercial laundry firm in the country, citing a commitment to building the wealth and careers of its employees.

Founded in Cleveland in 2009, Evergreen laundry lies at the heart of a movement that has now spread around the world. This attention to community wealth building is providing a 21st century model for Gandhi’s “constructive program,” which — along with nonviolent direct action — powered his overall campaign to overcome the political and economic oppression of colonialism.

The cooperative movement in the Rust Belt city of Cleveland has deep roots in community struggle for shared wealth. Its earliest origins are in the Mondragon co-op movement of the Basque Country in northern Spain, where tens of thousands of workers are organized into a vast co-op network that has flourished since the 1950s. Here in the U.S., when steel companies were closing down throughout the Ohio Valley in the 1970s — and moving to non-union, lower-wage regions in the south, and then overseas — a small band of activists promoted the idea of worker ownership.

Gar Alperovitz, a key player in that campaign, traces its origins to the 1977 shuttering of the Youngstown Sheet and Tube steel mill, which threw 5,000 steelworkers onto the streets, with little retraining help and no other jobs available. A plan by an ecumenical religious coalition for community-worker ownership of the giant mill captured widespread media attention, significant bipartisan support and an initial $200 million in loan guarantees from the Carter administration.

According to Alperovitz, “Corporate and other political maneuvering in the end undercut the Youngstown initiative. Nonetheless, the effort had ongoing impact, especially in Ohio, where the idea of worker-ownership became widespread … because of all the publicity and the depth of policy failures in response to deindustrialization throughout the state.”

Now, nearly half a century later, the Evergreen laundry and its sister solar and greenhouse coops are at the heart of the model around which the theory and practice of community wealth building have grown. Developed by the new economy research center Democracy Collaborative, the model is a simple one: First, identify anchor institutions — hospitals, universities, seats of government — that are not going to relocate in search of higher profits and incentivize them to do their procurement of supplies and services locally, so that those dollars stay at home. Then, make regulatory, financing and policy changes that support the growth of cooperatives to supply their needs, so that the business profits stay with the workers. This model has been quietly gaining attention and putting down roots in other places — starting with a jump across the Atlantic Ocean.

Community wealth building in the UK

In 2012, it seemed like the run-down industrial city of Preston, in northern England, had come to the end of the road. Its economic base had been bleeding away for years, and the last gasp attempt — a deal to lure in a mall developer — had fallen through. Fortunately, a deep-thinking member of the Preston City Council, Matthew Brown, had heard of an innovative model of community wealth building based in Cleveland, Ohio.

“Crucially, we need to have more democracy in Preston’s economy — we can’t be at the whims of outside investors who’ll want to extract as much wealth from our community as possible,” Brown told the Lancashire Post. He reached out to Ted Howard from the Democracy Collaborative and, looking back on the last 10 years, the resulting collaboration can be seen as transformative.

Preston City Council started by working with its own anchor institutions, getting them to prioritize contracting with local companies. It began creating worker cooperatives and paying a real living wage. The city’s government pension fund is now investing locally. Plans for a community bank are in the works. Employment and affordable housing rates are up; child poverty is down.

Procurement dollars that stayed within the city have risen from $46.8 million to $138.4 million; anchor institutions are more connected to the local economy; and its residents and experience in supporting the development of new businesses and cooperatives have grown. According to Ted Howard of the Democracy Collaborative, the impact and potential of these combined efforts is “creating an ecosystem of change that will be the engine for a new, fairer economy.”

In a stunning turnaround, Preston was named the most improved city in the U.K. in 2018, and the “Preston Model” has become a household word. The Centre for Local Economic Strategies, or CLES, which was active in Preston, is now working with dozens of local authorities, anchor institutions, and U.K. nations to develop community wealth building approaches that are appropriate to the context of their place. At the same time, it is also supporting similar efforts across Europe and as far afield as Australia and New Zealand.

Keeping small businesses alive in Denver

Back in the U.S., where similar models are spreading, Denver’s Center for Community Wealth Building, or CCWB, has just received a $360,000 economic development grant for a three-year initiative to launch six to nine new cooperatives in Denver and neighboring Aurora. Such worker cooperatives can stabilize jobs and income for those who might otherwise be displaced by gentrification, while also help to keep small businesses — the heart of these communities — alive.

CCWB Executive Director Yessica Holguin was first hired as a fellow to work on building opportunity in low-income neighborhoods. Coming from a community organizing background, her first step was to go out and talk to the community. “I wanted to understand the experience of gentrification from the perspective of the residents. And I wanted to hear what solutions resonated with them,” Holguin explained in a press release. “When people own their jobs, when they own their businesses, own their lives, the ripple effects are felt throughout the community.”

Worker co-ops clearly resonated, and she jumped in to help launch two of them — both of which remain successful today: Mujeres Emprendadores, a catering service started by immigrant women, and Satya Yoga Cooperative, a yoga school run by and for people of color.

CCWB’s three-pronged strategy is modeled on the Evergreen co-ops: democratize ownership through worker co-ops, strengthen entrepreneurial opportunities for people of color and encourage anchor institutions to become local economic engines. To help the University of Denver shift its spending on catering from national chains, for example, CCWB organized a tasting event where over a hundred university event planners met and began building relationships with 11 community caterers.

To ensure that cooperatives can flourish, CCWB has developed a roadmap to guide various city departments to support awareness, skills and access. “It’s not just potential worker-owners who need to see the benefits of cooperative businesses” Holguin said. “We want the community to understand how widespread democratic ownership will benefit everyone.”

An economy like a little stream

This approach is proving flexible, resilient and effective. It is putting down roots and beginning to have an impact not only in Cleveland, Preston and Denver, but in an ever-growing number of cities around the world. It consistently supports both political and economic democracy, while also addressing the needs for better pay and a sharing of our common wealth.

We can use the analogy of water to think about how money moves in an economy. One model is like a storm water system, efficiently gathering water from many small sources, with the goal of consolidation and steady movement toward a central location. A very different model is like a little stream meandering through a wetland, cleansing and nourishing everything it touches — an integral part of the ecosystem, not trying to get anywhere else.

In our current economic system, money functions like the former, steadily being siphoned from the hands of individuals and communities into those of great financial interests. Community wealth building is all about the latter — circulating and recirculating money in the local economy, in no hurry, allowing its benefits to serve all.

By offering a powerful framework and lever for moving toward greater local control over wealth, community wealth building is simply another way of getting to the roots. It provides an alternative to moneyed interests being in control and their bottom line trumping the common welfare.

Reflecting on the role of the Evergreen Laundry — established in a neighborhood of Cleveland where the average income is lower than 93.4 percent of U.S. communities — Howard told The Guardian: “A job is not enough. For people to stay out of poverty they need to be able to acquire assets.” Along with a job, the co-op offers pension payments and profit sharing, and has brought the possibility of home-ownership within reach.

From a new homeowner in Cleveland, to growing connections between university staff in Colorado and local catering co-ops, to the turnaround of a struggling city in northern England and beyond, the promise of community wealth building appears boundless. Bringing together Gandhi’s strategy of nonviolent direct action to confront injustice with a constructive program of steadily diverting resources from the powers-that-be back to the people, this model offers a powerful framework for reclaiming our democracy and our economy.

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PARTICIPATORY ECONOMY (PARECON)
Coordinatorism vs Managerialism

A critique of an aspect of Albert and Hahnel’s class analysis and economic vision
February 11, 2023

Introduction

This paper begins with a brief presentation of participatory economics. The presentation focuses on the class aspect of the model. It outlines the thinking behind Albert and Hahnel’s three class analysis. It takes a critical look at their thinking behind the corporate division of labour and the coordinator class. It suggests alternative ways of thinking about this third class, their source of power etc., which have implications for the model. As a result, the necessity of one of the model’s main features is questioned. The motivation for writing this paper comes from a desire to improve participatory economics by clarifying and simplifying the model in such a way that advocacy and organise become easier.
Participatory Economics in Brief

The participatory economics model was developed by Michael Albert and Robin Hahnel and presented as an alternative to both “free” market capitalism and 20th century socialism. The model is a product of Albert and Hahnel’s experience of activism in the 1960s and 1970s, their critique of the Left, their broader analysis of 20th century history and the left-libertarian tradition more generally. One of their central insights is that the Left neglects the development of vision and therefore doesn’t really understand what it wants when it asserts “Another World is Possible!” or similar sounding slogans designed to inspire. Writing in the late 1970s, they stated:

“Making a socialist revolution […] requires a clear vision of what the socialism we want will be like. How will it work, what will be its institutional and human relations, and how will its quality of life be superior to that we now endure?” [1]

The model that they developed to address this concern is made-up of five main features. They are:

1. Either non-ownership or collective ownership of the means of production 2. Self-managed worker and consumer councils

3. Balanced job complexes (BJCs)

4. Remuneration for effort and sacrifice

5. Participatory planning

One of the central objectives of the participatory economics model is to generate classlessness. Like all socialists, Albert and Hahnel see capitalism as being based on a system of class exploitation and oppression. However, unlike many socialists, Albert and Hahnel also see 20th century socialism as a system of class oppression and exploitation. This is because they reject the typical two class analysis (i.e. capitalists and workers) that is generally accepted within socialist circles. Instead they see a third class that sits between these two main classes. In addition to the capitalist class and the working class, Albert and Hahnel insist that a third class – what they call the “coordinator class” – also exists. They define this third class as follows:

“Planners, administrators, technocrats, and other conceptual workers who monopolise the information and decision-making authority necessary to determine economic outcomes. An intermediate class in capitalism; the ruling class in coordinator economies such as the [former] Soviet Union, China and Yugoslavia.” [2]

From their point of view, what is generally referred to, by both those on the Right and the Left, as socialism (in both its market and centrally planned forms) is better understood as coordinator economics: “An economy in which a class of experts / technocrats / managers / conceptual workers monopolise decision-making authority while traditional workers carry out their orders”. [3] Importantly, for Albert and Hahnel, the origins of coordinatorism can be traced back to the “original Marxist theoretical framework” [4]:

“On average, the Marxist concepts that organise Marxists’ thought, and the organisational structures and strategies that Leninists abide, together have a built-in logic that causes Marxist-Leninists – even against their best inclinations and aspirations – to elevate coordinators.” [5]

“Unfortunately, for all its emphasis on class analysis, Marxism blinded many fighting against the economics of competition and greed to important antagonisms between the working class and the new, professional managerial class, or coordinator class.” [6]

The above reference to the “professional managerial class” points to the work of two other important thinkers who Albert and Hahnel credit for their development of the idea of the coordinator class: “…our own view derives more from the work of Barbara and John Ehrenreich.” [7] This refers to a lead article on the professional managerial class by the Ehrenreich’s that was published in 1979. The reasons given, by Albert and Hahnel in that book, for the rebranding of this third class from the professional

managerial class to the coordinator class are that they saw the Ehrenreich’s conception as “flawed” and “imprecise”. [8] Nevertheless, the significance of the Ehrenreich’s work on their thinking is captured in Albert’s memoir:

“The book matters to me not only for the essay that Robin and I did but because writing that essay crystallised our views about class and helped set us off on the journey to what we later called participatory economics.” [9]

Understanding Albert and Hahnel’s class analysis is crucial to understanding the thinking behind most, if not all, of the features that make up the participatory economics model. For example, participatory planning has been developed as a means of arriving at an equitable and efficient plan but in a way that makes both markets and central planning redundant. In making central planners redundant, participatory planning removes the need for the coordinator class positions, and with it the class dynamics, within the planning process of centrally planned socialism.

A similar argument could be made for the development of self-managed worker and consumer councils. Once again, these proposed institutions are designed to make coordinator class rule over workers and consumers superfluous and in-so-doing removing oppressive class dynamics from the economic system. However, it is perhaps the proposed feature of balanced job complexes (BJCs) that is most explicitly designed to address coordinator class dominance.

As we have seen, according to Albert and Hahnel, the coordinator class derives its social-economic power by monopolising knowledge and skills and decision-making authority within the workplace and broader economy. Furthermore, the ability of the

coordinator class to garner this power is facilitate by a specific institution, found in both capitalist and (20th century) “socialist” economic systems. That institution is called the “corporate division of labour”:

“Corporate divisions of labour will ensure that a few would give orders and most obey, and these are not conducive to all participating equality.” [10]

What is important to understand about this institution is that all economies have a division of labour of some kind and that it can be adjusted to have more or less egalitarian / hierarchical outcomes. This is because the division of labour has to do with how jobs (which are just bundles of tasks) are formulated. If we design jobs where empowering tasks are shared out evenly then we get an egalitarian division of labour. But if we design jobs so that empowering tasks are concentrated in a small number of jobs then we get a hierarchical division of labour. As the name suggests, the corporate

division of labour refers to a hierarchical formulation. And as already noted, it is this particular institution, say Albert and Hahnel, that facilitates the privileged position of the coordinator class.

This is where balanced job complexes (BJCs) come in. They are defined as:

“A collection of tasks within a workplace that is comparable in its burdens and benefits and in its impact on the worker’s ability to participate in decision making to all other job complexes in that workplace […] and often for additional tasks outside to balance their overall work responsibilities with those of other workers in society.” [11]

As we can see, the basic idea here is to replace the hierarchical outcomes of the corporate division of labour with an egalitarian structure and dynamic. This is Albert and Hahnel’s way of systematically undermining coordinator class privilege and replacing it with an arrangement that institutionalises classlessness and facilitates self-management.

We can see from the above definition that BJCs have two aspects to them. One aspect has to do with creating conditions in which workers can “participate in decision making” in meaningful ways within the workplace / economy. The other has to do with sharing out the “burdens and benefits” equally amongst workers. In other words, in a participatory economy – as conceived of by Albert and Hahnel – jobs are balanced for both empowerment and desirability:

“So in a participatory economy every worker council is called upon to create a job balancing committee to distribute and combine tasks in ways that make jobs more “balanced” with regard to desirability and empowerment.” [12]

“We need balanced job complexes for desirability and empowerment in each and every workplace, as well as guarantee that workers have a combination of tasks that balance across workplaces.” [13]

We can conclude that, for Albert and Hahnel, reformulating jobs for both equal empowerment and desirability is a necessary and crucial aspect of participatory economics as a proposed vision for economic justice.
A Critique of Albert and Hahnel’s Analysis and Vision

Above we have seen some of the ideas and reasoning behind participatory economics with a focus on Albert and Hahnel’s class analysis and the implications of this for their

vision for a just economic system. I would now like to take an even closer look at certain aspects of their argument. To assist in this we will explore the following questions.

1. Isn’t the analysis that informs the coordinator class confused and confusing?

As we have seen, for Albert and Hahnel the third class – what they call the coordinator class – can be traced back to Marx’s ideas and in particular to his two class analysis that has a “built-in logic” that “blinded” socialist to the existence of this third class. However, they also characterise the coordinator class as an “intermediate class in capitalism”. So on the one hand we have a dominant class in socialist economies that was informed by Marx and on the other the same class in capitalist economies that, presumably, was not informed by Marx.

If correct, this seems to suggest that the emergence of this third class has something to do with a more general historical trend that was taking place. That general trend was the emergence of management culture as a specialised field based on its own particular knowledge and skill-set. Furthermore, this is a trend that has a much longer and richer history than that suggested by Albert and Hahnel’s formulation of the coordinator class. As one Social and Organisational Theory scholar puts it:

“So what we see is the emergence of the word [“management”] really around the 17th and 18th centuries in English. It has got Italian roots from mano, the hand, or it is sometimes tracked back to maneggiarre, which is the activity of looking after or training horses. But in terms of its application in the English language you see it sometimes in the theatre, from the 17th century onwards, but much more intensely after the industrial revolution to refer to a particular class of people who were basically overseeing the new factories and offices of the time. So, we are talking about a certain class fraction if you like. The term itself has some quite interesting roots, particularly the idea of managery, a certain kind of skill at organising. But I think in terms of its contemporary application, I find it very troublesome. Largely because it assumes that what managers do is something that ordinary people can’t do. In other words it assumes insufficiency in most of us. And that is why we need managers to coordinate us. And that is not that often remarked on. In that sense of giving up our autonomy, our control over our everyday lives to a cadre of people called managers, we are also admitting a sort of insufficiency in ourselves, as if we couldn’t do this because we are too stupid to arrange matters ourselves. That seems to me a fundamentally repressive technique of organising.” [14]

A more appropriate term for this third class, therefore may be the managerial class. As we shall see, this suggested name for the third class also complements the argument presented in response to the next question.

2. Can the monopolisation of empowering tasks really set this third class up to perform the role of managing the workplace / economy?

According to Albert and Hahnel, the corporate division of labour must be dismantled because it is this institution that facilitates the coordinator class to “monopolise the information and decision-making authority necessary to determine economic outcomes”. But does this make sense? How, for example, does monopolising the knowledge and skill-set for brain surgery (for example) translate into decision-making authority on economic matters? For that matter, how does monopolising knowledge and skills from any empowering job – that is not related to management – lead to the monopolisation of decision-making authority necessary to determine economic outcomes? The answer, I think, is that it doesn’t.

The point being made here is that having specialised knowledge and skills in a specific field does not automatically translate into the knowledge and skills necessary for the specific role of management, as Albert and Hahnel’s argument seems to suggest. So, if it is not the corporate division of labour that is facilitating the coordinator class to monopolise the information and decision-making authority necessary to determine economic outcomes, then what is it? One possibility (that is in line with the answer given to question 1) is that this third class derives it authority from an ideology called managerialism:

“Managerialism combines management knowledge and ideology to establish itself systemically in organisations and society while depriving owners, employees (organisational-economical) and civil society (social-political) of all decision-making powers. Managerialism justifies the application of managerial techniques to all areas of society on the grounds of superior ideology, expert training, and the exclusive possession of managerial knowledge necessary to efficiently run corporations and societies.” [15]

Clearly, this definition refers to managerialism in capitalist economies. However, it could easily be expanded to include what Albert and Hahnel refer to as coordinator economies. For example, in the following excerpt the “expert organiser” could be understood as a synonym for the Leninist vanguard party:

“Anti-authoritarian critiques of managerialism are clearly entangled with a variety of other complaints, but they all share a deep mistrust of the notion of the expert organiser. The centrality of the manager, as someone with more status and reward who is not involved in day-to-day organising, is entirely antithetical to most anarchist, socialist, feminist and environmentalist thinkers.” [16]

3. Are BJCs really necessary?

If the above is correct – if the coordinator class are better understood more generally as the managerial class and the source of power for this third class is not an institution called the corporate division of labour but an ideology called managerialism – then this raises a question regarding the aspect of Albert and Hahnel’s vision, namely: Are BJCs a necessary part of the model?

As we have seen, BJCs are proposed as a solution to two important issues within economic justice; empowerment and desirability. However, if the source of power for the third class is the ideology of managerialism and this is replaced by a popular culture of self-management then the empowerment aspect of the argument already seems to have been addressed, and with it the argument for dismantling the corporate division of labour and replacing it with BJCs seems to disintegrate. This part of the argument relies on the assumption that in a functioning participatory economy / society citizens would be educated in what we might generally refer to as self-organisation including, in the economic sphere, self-management. This would begin in school and extend into adulthood. Therefore, in a functioning participatory economy, all workers would be proficient in self-management, making the elitist ideology of managerialism a thing of the past.

As for the desirability aspect of the argument for BJCs, once again it may also be suggested that in a popular and functioning culture of self-management, workers would naturally address the issue of desirability without the necessity of a formal institutional arrangement and all of the additional work entailed in establishing and maintaining BJCs. Likewise, it could also be argued that another feature of the model already takes care of this concern. As Albert has stated:

“…differences in quality of life at work could be justly offset by appropriate remuneration.” [17]

In other words, the fourth feature of the participatory economics model outlined above – i.e. remuneration for effort and sacrifice – can address the desirability issue without the need for BJCs.
Conclusion

It has been suggested that Albert and Hahnel are correct in highlighting the existence of a third class that sits between capitalist and workers in capitalist economies and that became dominant in socialist economies during the 20th century. However, their use of the term “coordinator class” as a descriptor of this third class has been questioned. The “managerial class” has been suggested as a better alternative. Albert and Hahnel’s claim that this third class derives its power from the corporate division of labour has also been challenged. The ideology of managerialism has been proposed as an alternative explanation for the source of power for this third class. It has also been suggested that, with these changes in place, two existing features of the model already address the issues of empowerment and desirability that BJCs are proposed to address. They are (1) a popular culture of self-management and (2) remuneration for effort and sacrifice. If correct, this appears to make BJCs redundant. Finally, introducing these proposed changes into the model would make both the advocacy and implementation of a participatory economy a simpler endeavour.

Notes

1. Unorthodox Marxism: An Essay on Capitalism, Socialism and Revolution. (p253)

2. From the Glossary of Michael Albert and Robin Hahnel’s Looking Forward: Participatory Economics for the Twenty First Century (p151-153).

3. Same as above.

4. Looking Forward: Participatory Economics for the Twenty First Century (p7). 5. Michael Albert, Realising Hope: Life Beyond Capitalism (p159).

6. Robin Hahnel, Economic Justice and Democracy: From Competition to Cooperation (p65).

7. Michael Albert and Robin Hahnel, Marxism and Socilaits Theory (p140) 8. See Chapter 9 of Between Labour and Capital (edited by Pat Walker) for details.

9. Michael Albert, Remembering Tomorrow: From SDS to Life After Capitalism, (p189).

10.Michael Albert in ParEcon: Life After Capitalism (p46).

11. From the Glossary of Michael Albert and Robin Hahnel’s Looking Forward: Participatory Economics for the Twenty First Century (p151-153).

12.Robin Hahnel in Of the People, By the People: The Case for a Participatory Economy (p55-56).

13.Michael Albert in ParEcon: Life After Capitalism (p104).

14.From an interview I did with Martin Parker for Collective 20 titled Management: Past, Present and … Future?

15.From Thomas Klikauer Managerialism: Critique of an Ideology (p2).

16.Martin Parker in Shut Down the Business School: What’s Wrong with Management Education (p60).

17.Michael Albert in ParEcon: Life After Capitalism (p104-105).

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Mark Evans
Mark was born in 1968 in the industrial heartland of England to working class parents. He has two older sisters. Over the years He has lived in a number of cities and have had many different jobs. However, over the past 20 years he has lived in Birmingham (UK) where he works in healthcare on the nursing side of things. He has two main interests in life. They are mental health and social justice. His main interest in social justice has to do organising for a participatory society. More precisely, He is interested in helping to establish an international network of geographically based self-managed groups as a basis for a participatory society. It is this that motivated me to help set-up, in 2020, Real Utopia: Foundation for a Participatory Society. Mark is also a member of Collective 20 writers collective.


1 COMMENT
Michael on February 11, 2023 11:42 am

Hi Mark, I’ll comment for me, though I think Robin would agree, and others. I will try to keep it short, here, as just a comment but the issue is obviously important so I won’t keep it too short!

First, as noted at the end of Mark’s piece, the remunerative approach of participatory economics provides income for duration, intensity, and also onerousness of socially valued labor so it address desirability differences in jobs. Honestly, I was surprised to see that we ever said it was critical to balance not only for empowerment effects, but also for desirability/onerousness. I haven’t checked the quotes to see whether the remunerative aspect is noted each time. On the other hand, it is certainly true, I believe, that in balancing for empowerment one will likely go a considerable ways toward balancing desirability/onerousness, though not all the way. But I agree with Mark that participatory economy doesn’t require balancing onerousness/desirability and I say so, regularly.

The key point of Mark’s article, though, I think, is about balancing jobs for empowerment. Interestingly, Mark’s changing the name of the class from “coordinator” to “managerial” corresponds in considerable part to our reason for changing the name in the opposite direction. That is we preferred to use a new name, not “professional managerial class” (or as early anarchists called it, “intellectual class”), partly because we think this class is not confined to managers, or even managers and professionals. It is, rather, those who have positions in the economy that afford them access to decision-making levers, confidence, information, skills, etc., needed for decision making. But the bigger reason for preferring the label coordinator class was actually the one Mark evidences in reverse. We felt calling it managerial would over time distract attention from the economy, perhaps even completely, to mainly and perhaps exclusively schooling, culture, ideology, and the like. We felt it would lead to a whole lot of attention to ideas, attitudes, values, training, schooling, etc. and too little attention, maybe none, to economic institutions that would need to change to attain classlessness. That is what I see ocurring in Mark’s essay.

If the economy has a corporate division of labor, not only will roughly 20 percent do empowering tasks and 80 percent do rote tasks, with 20 percent deciding and 80 percent obeying because that is what their jobs call for and allow, but there will also be an accommodation between the rest of social relations and that hierarchy. Mark seems to me to be saying, change schooling, change attitudes, and that will automatically remove or render unimportant the class division. To me it sounds sort of like saying change schooling, culture, views, etc. and we don’t have to worry about some people owning workplaces and other people not.

It is certainly true that part of getting rid of the coordinator/working class division is changing attitudes, schooling, and much else — but in the economy itself what needs to be changed is, for one, the division of labor. Suppose that without addressing the work place organization, movements could change the overall culture, training, schooling, expectations, etc., so the whole workforce, not just 20 percent of it, expects to be and has prior training to self manage outcomes. Even if you could, you would then have to replace the corporate division of labor precisely because, in that hypothetical situation, people would not want to dominate or be dominated. What do you change too? Balanced job complexes. So whether one says you change the economic institutions and the rest changes, or one says the rest changes and then folks all participate fully in workplace decision making so the jobs change, or, as I think is the case, the two happen hand in hand, nonetheless to achieve classlessness we need to get rid of economic structures that impose rule by a few of many.

A classless economy can’t have private ownership of productive assets, an economic institution, because that institution insures by the circumstances it imposes a class division. Similarly, a classless economy can’t have a corporate division of labor, an economic institution, because that institution insures by the circumstances it imposes a class division between those empowered, who make decisions, and those disempowered who don’t make decisions.
Woke Imperialism
Woke culture, devoid of class consciousness and a commitment to stand with the oppressed, is another tool in the arsenal of the imperial state.


February 6, 2023
Source: Scheerpost

Identity Politics – by Mr. Fish

The brutal murder of Tyre Nichols by five Black Memphis police officers should be enough to implode the fantasy that identity politics and diversity will solve the social, economic and political decay that besets the United States. Not only are the former officers Black, but the city’s police department is headed by Cerelyn Davis, a Black woman. None of this helped Nichols, another victim of a modern-day police lynching.

The militarists, corporatists, oligarchs, politicians, academics and media conglomerates champion identity politics and diversity because it does nothing to address the systemic injustices or the scourge of permanent war that plague the U.S. It is an advertising gimmick, a brand, used to mask mounting social inequality and imperial folly. It busies liberals and the educated with a boutique activism, which is not only ineffectual but exacerbates the divide between the privileged and a working class in deep economic distress. The haves scold the have-nots for their bad manners, racism, linguistic insensitivity and garishness, while ignoring the root causes of their economic distress. The oligarchs could not be happier.

Did the lives of Native Americans improve as a result of the legislation mandating assimilation and the revoking of tribal land titles pushed through by Charles Curtis, the first Native American Vice President? Are we better off with Clarence Thomas, who opposes affirmative action, on the Supreme Court, or Victoria Nuland, a war hawk in the State Department? Is our perpetuation of permanent war more palatable because Lloyd Austin, an African American, is the Secretary of Defense? Is the military more humane because it accepts transgender soldiers? Is social inequality, and the surveillance state that controls it, ameliorated because Sundar Pichai — who was born in India — is the CEO of Google and Alphabet? Has the weapons industry improved because Kathy J. Warden, a woman, is the CEO of Northop Grumman, and another woman, Phebe Novakovic, is the CEO of General Dynamics? Are working families better off with Janet Yellen, who promotes increasing unemployment and “job insecurity” to lower inflation, as Secretary of the Treasury? Is the movie industry enhanced when a female director, Kathryn Bigelow, makes “Zero Dark Thirty,” which is agitprop for the CIA? Take a look at this recruitment ad put out by the CIA. It sums up the absurdity of where we have ended up.

Colonial regimes find compliant indigenous leaders — “Papa Doc” François Duvalier in Haiti, Anastasio Somoza in Nicaragua, Mobutu Sese Seko in the Congo, Mohammad Reza Pahlavi in Iran — willing to do their dirty work while they exploit and loot the countries they control. To thwart popular aspirations for justice, colonial police forces routinely carried out atrocities on behalf of the oppressors. The indigenous freedom fighters who fight in support of the poor and the marginalized are usually forced out of power or assassinated, as was the case with Congolese independence leader Patrice Lumumba and Chilean president Salvador Allende. Lakota chief Sitting Bull was gunned down by members of his own tribe, who served in the reservation’s police force at Standing Rock. If you stand with the oppressed, you will almost always end up being treated like the oppressed. This is why the FBI, along with Chicago police, murdered Fred Hampton and was almost certainly involved in the murder of Malcolm X, who referred to impoverished urban neighborhoods as “internal colonies.” Militarized police forces in the U.S. function as armies of occupation. The police officers who killed Tyre Nichols are no different from those in reservation and colonial police forces.

We live under a species of corporate colonialism. The engines of white supremacy, which constructed the forms of institutional and economic racism that keep the poor poor, are obscured behind attractive political personalities such as Barack Obama, whom Cornel West called “a Black mascot for Wall Street.” These faces of diversity are vetted and selected by the ruling class. Obama was groomed and promoted by the Chicago political machine, one of the dirtiest and most corrupt in the country.

“It’s an insult to the organized movements of people these institutions claim to want to include,” Glen Ford, the late editor of The Black Agenda Report told me in 2018. “These institutions write the script. It’s their drama. They choose the actors, whatever black, brown, yellow, red faces they want.”

Ford called those who promote identity politics “representationalists” who “want to see some Black people represented in all sectors of leadership, in all sectors of society. They want Black scientists. They want Black movie stars. They want Black scholars at Harvard. They want Blacks on Wall Street. But it’s just representation. That’s it.”

The toll taken by corporate capitalism on the people these “representationalists” claim to represent exposes the con. African-Americans have lost 40 percent of their wealth since the financial collapse of 2008 from the disproportionate impact of the drop in home equity, predatory loans, foreclosures and job loss. They have the second highest rate of poverty at 21.7 percent, after Native Americans at 25.9 percent, followed by Hispanics at 17.6 percent and whites at 9.5 percent, according to the U.S. Census Bureau and the Department for Health and Human Services. As of 2021, Black and Native American children lived in poverty at 28 and 25 percent respectively, followed by Hispanic children at 25 percent and white children at 10 percent. Nearly 40 percent of the nation’s homeless are African-Americans although Black people make up about 14 percent of our population. This figure does not include people living in dilapidated, overcrowded dwellings or with family or friends due to financial difficulties. African-Americans are incarcerated at nearly five times the rate of white people.

Identity politics and diversity allow liberals to wallow in a cloying moral superiority as they castigate, censor and deplatform those who do not linguistically conform to politically correct speech. They are the new Jacobins. This game disguises their passivity in the face of corporate abuse, neoliberalism, permanent war and the curtailment of civil liberties. They do not confront the institutions that orchestrate social and economic injustice. They seek to make the ruling class more palatable. With the support of the Democratic Party, the liberal media, academia and social media platforms in Silicon Valley, demonize the victims of the corporate coup d’etat and deindustrialization. They make their primary political alliances with those who embrace identity politics, whether they are on Wall Street or in the Pentagon. They are the useful idiots of the billionaire class, moral crusaders who widen the divisions within society that the ruling oligarchs foster to maintain control.

Diversity is important. But diversity, when devoid of a political agenda that fights the oppressor on behalf of the oppressed, is window dressing. It is about incorporating a tiny segment of those marginalized by society into unjust structures to perpetuate them.

A class I taught in a maximum security prison in New Jersey wrote “Caged,” a play about their lives. The play ran for nearly a month at The Passage Theatre in Trenton, New Jersey, where it was sold out nearly every night. It was subsequently published by Haymarket Books. The 28 students in the class insisted that the corrections officer in the story not be white. That was too easy, they said. That was a feign that allows people to simplify and mask the oppressive apparatus of banks, corporations, police, courts and the prison system, all of which make diversity hires. These systems of internal exploitation and oppression must be targeted and dismantled, no matter whom they employ.

My book, “Our Class: Trauma and Transformation in an American Prison,” uses the experience of writing the play to tell the stories of my students and impart their profound understanding of the repressive forces and institutions arrayed against them, their families and their communities. You can see my two-part interview with Hugh Hamilton about “Our Class” here and here.

August Wilson’s last play, “Radio Golf,” foretold where diversity and identity politics devoid of class consciousness were headed. In the play, Harmond Wilks, an Ivy League-educated real estate developer, is about to launch his campaign to become Pittsburgh’s first Black mayor. His wife, Meme, is angling to become the governor’s press secretary. Wilks, navigating the white man’s universe of privilege, business deals, status seeking and the country club game of golf, must sanitize and deny his identity. Roosevelt Hicks, who had been Wilk’s college roommate at Cornell and is a vice president at Mellon Bank, is his business partner. Sterling Johnson, whose neighborhood Wilks and Hicks are lobbying to get the city to declare blighted so they can raze it for their multimillion dollar development project, tells Hicks:

You know what you are? It took me a while to figure it out. You a Negro. White people will get confused and call you a nigger but they don’t know like I know. I know the truth of it. I’m a nigger. Negroes are the worst thing in God’s creation. Niggers got style. Negroes got . A dog knows it’s a dog. A cat knows it’s a cat. But a Negro don’t know he’s a Negro. He thinks he’s a white man.

Terrible predatory forces are eating away at the country. The corporatists, militarists and political mandarins that serve them are the enemy. It is not our job to make them more appealing, but to destroy them. There are amongst us genuine freedom fighters of all ethnicities and backgrounds whose integrity does not permit them to serve the system of inverted totalitarianism that has destroyed our democracy, impoverished the nation and perpetuated endless wars. Diversity when it serves the oppressed is an asset, but a con when it serves the oppressors.


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Slavoj Zizek: Capitalism’s Court Jester?

By Gabriel Rockhill, Gregory Wilpert
February 9, 2023


The philosopher Slavoj Zizek is perhaps the world’s best-known leftist philosopher, often making “top intellectuals” lists, appearing in countless talk shows, and publishing one or more new books every year for the past thirty years. He claims to be a communist and a Marxist. But if he is as radical as he appears to be, why does he enjoy such widespread notoriety in the media? Villanova Philosophy Professor Gabriel Rockhill argues that it is because he is actually an unserious and unthreatening “court jester,” who ends up propping up the very system that he claims to be against.

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To Change the World, Our Unions Must Change
By David Story
February 12, 2023
Source: Labor Notes

To strengthen our unions, we need to cut away the underbrush of personal loyalties and make our unions less secretive and hierarchical. (Photo: Jim West)

Unionism has seen a resurgence in popularity the past few years. The problem is, it’s very difficult to get our members organizing in their communities when they hate the way our leadership (I use that word loosely) is operating.

Our unions shouldn’t be, and I’d argue weren’t meant to be, transactional—yet by and large that is what they have grown to be. By transactional I mean: I pay dues, you provide a service, and my duty ends with my dues.

Instead, our unions should be conduits for radically changing society and the economy as we know it. Even as conservative as my own union, the Machinists, is, the preamble to our union constitution begins, “Believing that the right of those who toil to enjoy to the full extent the wealth created by their labor is a natural right…” and goes on to say that worker organizations should use “the natural resources, means of production and distribution for the benefit of all the people.”

It’s apparent that our founding members believed we deserved every single penny we worked to generate, and that all the natural resources and means of production and distribution should be used by us to benefit our communities.

Yet somewhere along the way, we’ve allowed union staff to be elected or appointed who believe that we should concede management rights clauses and no-strike clauses, that the rank and file shouldn’t be involved in negotiating our own contracts, that in some cases they can override our vote against a contract and accept it on our behalf, and that we should bend a knee and be thankful we have a job.

These staff positions are paid by our dues; they should be answerable to us alone. Our unions have grown to function much the same way as corporate America, with a hierarchical structure where despots sit in leather chairs behind mahogany desks and dare anyone to question their authority.

In my own union, the members directly elect our entire executive board. These elections provide a minute amount of accountability to the membership—but not nearly enough. As in U.S. politics, elections rarely hold people accountable for their actions (or inactions). Plus, most union staff are unelected, and accountable only to those who appointed or hired them.

I love many of the union staff I’ve worked with—but I believe the labor movement has systemic problems that are holding us back. I’ll address three problems here.

IMPLIED HIERARCHY

The first problem is an implied hierarchy.

A few years ago, our stewards’ committee was dealing with a layoff and wasn’t getting the information we needed. As a committee, we voted to file charges with the National Labor Relations Board. We brought it to the members and they unanimously agreed.

Traditionally, our district business rep had been the one who had handled filing charges. But our local was getting blown off by Human Resources and we decided it was time to bring some power back to the shop floor. I was designated to file the charge.

Within a week, our business rep was on the phone to me, demanding I withdraw the charge. I refused, and he mentioned an Official Circular—a letter from our union’s international president—stating that local lodges shouldn’t file NLRB charges.

I understood the reasoning, because in some cases an unfavorable NLRB could rule against us and set precedent. But this was a simple charge over failure to provide information. Business reps should be a last resort in making demands, not the first.

Our job as unionists is to build power on the shop floor and wield that collectively. By shifting the union’s power to the business rep, we encourage H.R. to see our membership and committees as weak.

The organizational structure of locals, districts, and regions shouldn’t imply hierarchy. The union should be a participatory democracy where locals help each other out with cooperative collective action.


PERSONAL LOYALTY

The second problem is personal loyalty. When staff members are appointed, they’re inevitably loyalty to the appointer. Most people want to progress in their fields, and unionists are the same.

In the Machinists, many positions higher than district level are appointed by the international president. After our local’s NLRB charge, the general vice president was quick to point out at a State Council meeting that the charge was a violation.

A violation of what? There is nothing in our union constitution or bylaws that reserves the right to file charges to any specific body. On the contrary, the constitution states that anything not covered in it is at the discretion of the membership, so the circular that we previously mentioned wasn’t worth the paper it was written on.

I assume that this statement was at the behest of the president, who appoints all the general vice presidents—making them ultimately loyal to him.

Elections are our only path to ensure that the members are allowed to make the decisions that matter. We need people who believe in transparency, a true democratic process (not a representative, transactional one), and members with true integrity who can’t be swayed by the promises of an appointment if they go along to get along.

SECRECY


A third problem I’ve run into is secrecy.

Serving on several negotiating committees for my local, I’ve seen firsthand how agreeing to ground rules to keep bargaining details confidential can strangle the elected committee’s ability to communicate with the membership.

Never agree to ground rules that require loyalty to the committee over loyalty to the membership. Our own representatives have attempted to ban our committee from direct communications with our membership several times over the years, and we’ve always ignored them—at least until our last negotiations that I resigned from.

Every union member should demand transparent communications from your committee… if you even have a committee of elected local membership.

There are always excuses, but ultimately it’s the members who pay for, benefit from, and have the most to lose at negotiations. They deserve nothing less than complete transparency.

We will never build power by allowing our collective demands to be transferred to a single person or a small group. Building a directly democratic union takes more work—but it pays dividends to the membership.

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Economists’ Obsession With “Efficiency” Is Just an Endorsement of Greed

The global economy is “efficient” alright: it efficiently funnels wealth to the top while leaving most of humanity behind.
February 12, 2023
Source: Jacobin


When discussing markets, “efficiency” is a trick word. In everyday use or in disciplines like engineering, efficiency has a positive meaning, typically implying wise allocation of resources. But in economics the word is what translators call a “false friend,” a term you think you recognize but which others aren’t using in a way that matches your definition. Markets are frequently said to be “efficient” when they are in fact wasteful, chaotic, unethical, and harmful to the people they’re supposed to serve — as long as they swiftly deliver profit to the top.

Thankfully, the mix-up is becoming more visible to some influential economy watchers. In her book Homecoming: The Path to Prosperity in a Post-Global World, journalist Rana Foroohar hopes that “Panglossian ideas about the efficiency of unregulated markets will begin to fade.” She observes that industrial agriculture has an almost universal reputation for being efficient, when in fact its so-called efficiency “has come at great cost to everything, from our health to our food security to working conditions . . . not to mention the treatment of animals, and of course the disastrous consequences of it all for our environment.” What passes for efficiency often comes at the expense of resilience, Foroohar writes, and as a result severe system-wide fragilities have been introduced into the global economy, which guarantee supply-chain issues whenever there’s a disruption like war or a pandemic.

Foroohar is not alone in her observations. Sociologist Elizabeth Popp Berman’s book Thinking Like an Economist: How Efficiency Replaced Equality in US Public Policy recounts the rise of an “economic style of reasoning” in the policy-making of both Democrats and Republicans — let’s call it econ-mode. In this process, efficiency was enthroned as “the cardinal virtue” of policy, becoming a substitute for the idea of public interest. Cost-benefit analysis became mandatory; where once pollution could be considered just plain wrong, econ-mode could justify it if the benefits could be made to look greater than the costs. Ethical reasoning came to be considered “economically illiterate.” Berman writes that econ-mode “does not allow for commitments to absolute principles.” And since “claims about rights, justice, or liberty [shouldn’t be] weighing their costs,” we must be alert to the risks of efficiency-only arguments.

In his paper “Is Efficiency Biased?”, legal scholar Zachary Liscow concludes that “efficient policy-making places a heavy thumb on the scale in favor of the rich.” Since the 1980s, the ruling “law and economics” school has used econ-mode arguments to tacitly impose a “rich get richer” principle — the fruits of a long libertarian billionaire–funded effort to convert lawyers and judges to extra-shallow, short-course econ-mode doctrines. What Liscow usefully calls the “hidden meaning of efficiency” lurks in the mechanics of maximizing benefits. In econ-mode, benefits are best assessed by “willingness to pay,” and since the wealthy are more able to pay, their preferences are systematically prioritized. For example, Liscow writes that if “the monetary benefits of saving an hour of time for a rich person tend to be higher than . . . for a poor person, spending on transportation will be rich-biased.” Bus upgrades will lose to airport improvements.

Cases of abysmally bad cost-benefit kabuki abound. In their paper “Pricing the Priceless,” legal scholars Frank Ackerman and Lisa Heinzerling tell of one cost-benefit analysis they encountered that concluded that kids’ lives are valued too highly. The well-credentialed analyst studied child safety seat usage to assess the “true” cash value mothers put on kids’ lives. The time to fasten seats correctly versus that actually spent was converted to cash using hourly wage rates, yielding $500,000 per kid (less for poorer parents). In a blog post titled “Cost-Benefit Jumps the Shark,” Heinzerling cites an effort to curb sex crimes in prisons in which econ-addled analysts weighed how much prisoners were “willing to pay to avoid or to accept to endure” sexual assault.

These cases show how quickly cost-benefit analysis can become a “bogus quantification” bonanza. Can we go on allowing efficiency aficionados to paint “morally objectionable” moves as economically rational? Training in econ-mode seems to risk turning humans into “logic aliens,” to borrow a fabulously useful phrase from the philosophy of logic. What cost-benefit analysis concludes is smart is often alien and offensive to ordinary norms of decency. Econ-mode enthusiasts preach that cost-benefit and efficiency “maximize consumer welfare” by lowering prices. But low prices often depend on systemically oppressive practices which undervalue the needs, interests, and rights of the poor. Efficiency is too easily achieved by exploitation.

The problem persists at the planetary scale. Consider the twisted econ-mode logic of a leaked World Bank memo signed by former treasury secretary Larry Summers: since “costs of health impairing pollution depend on the foregone earnings . . . a given amount of health impairing pollution should be done in the . . . country with the lowest wages. I think the economic logic behind dumping a load of toxic waste in the lowest wage country is impeccable.” Unless we forcefully reject this sort of “impeccable” econ-mode efficiency logic, it will continue to surreptitiously but systematically enforce pro–rich world biases in global affairs. Through econ-mode goggles it looks 2,700 times more impeccable to impose pollution on people in the planet’s poorest decile than to inconvenience the average top global 1-percenter (that’s how sinfully bad global rich-to-poor income ratios are now). And econ-mode experts likewise ignore that poorer nations are less equipped to cope with those efficiently distributed harms.

Innocent souls who’ve bought into the capitalism’s-got-this narrative of great progress on global poverty may be surprised to learn that 85 percent of humanity lives on less than thirty dollars a day, which is the rock-bottom poverty line in the rich world. Half of humanity makes less than one-fifth of our poverty level. The idea, cherished by elites, that economic growth is synonymous with alleviating poverty falls apart under the lightest scrutiny. In truth, the planet’s poorest decile gets 0.07 percent of global income gains, while the richest decile captures 24 percent. The global economy is efficient alright: it efficiently funnels wealth to the top while leaving most of humanity behind.

As philosopher of economics Lisa Herzog writes in her essay “The Epistemic Seductions of Markets,” markets and their zealous evangelists impose a rigorous one-dollar-one-vote regime. In that way they ruthlessly and, yes, efficiently allocate resources to whomever pays most, while the poor suffer.

Take for instance our global food system. We produce more than enough calories to feed all humans, but 77 percent of global farmland “efficiently” fattens meat for the wealthy, while rich-world pets are less food insecure than 2.37 billion people, or one in three humans. Meanwhile 150 million kids are permanently stunted by malnutrition, and grain for biofuels “eats up enough food to feed 1.9 billion people annually.” And under the guise of enhancing market efficiency, some the world’s richest people and institutions, like hedge-funders and elite university endowments, invest (which is to say gamble) in food commodity markets. Stripped of elaborate econ-mode euphemisms, this means that greed-driven ghouls are profiting by taking calories out of the mouths of the planet’s poorest and most vulnerable children.

Meanwhile, speculation-driven price increases triggered by the Russia-Ukraine war forced the World Food Program to cut rations, risking a collateral mass murder by markets. As I argue elsewhere, there’s a risk that “for-profit” famines could kill more people than combat will in the Russia-Ukraine war. It’s sheer econ-mode lunacy to suggest that markets allocate our food abundance rationally or efficiently, never mind ethically. Under-regulated markets are a highly mechanized way to put greed above need.

Letting “the market decide” routinely leads to ludicrous and often lethal priorities. The United States spends twice as much on cosmetics per year than has been allocated to the clean energy transition — $80 billion versus $37 billion. To see more clearly what’s happening here, that $37 billion per year in per-capita terms comes out to $9.34 per month, which is less than the cost of a monthly Netflix subscription to combat the climate crisis. Far better big-picture collective thinking is urgently needed to protect the planet, and the interests of the bulk of humanity, but markets just aren’t built to do that sort of work. Aggregating individual purchases in greed-driven markets doesn’t result in collective material prudence. Governments must step up and prioritize resource usage in the public interest. But they can’t do that well if they rely on the same efficiency-centered logic and rhetoric of econ-mode zealots.

Our economy is a gigantic Rube Goldberg expression of our collective ethics. But under the halo of efficiency, the distributional logic of markets often produces a deadly parody of decency. We can’t afford to let efficiency be an excuse for evident economic evils. We must learn to recognize when market efficiency acts as a materially and morally regressive force, and to break the mental monopoly that econ-mode has on our leadership class. We need what Berman calls an “alternative intellectual infrastructure” and a plurality of big-picture thinking methods — modes of reasoning that make room for ethics, morality, and sacredness. In other words we must reverse the “efficiency” revolution before it does any more harm.

















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