My last post, “Austerity the Dangerous,” summarized what I’d taken away from Mark Blyth’s Austerity: The History of a Dangerous Idea. I mentioned I’d had to read slowly to ensure I grokked enough to proceed.
After I wrote that post, I picked up a copy of Richard D. Wolff’s Capitalism’s Crisis Deepens. Within reading the first couple of essays, I wished I’d read it first. Wolff explains a lot in clear, straightforward language. The “key purposes of austerity policies,” for example, are “to (1) shift the burden of paying for crisis and bailouts onto the total population, (2) reduce the economic footprint of the government, and (3) reduce creditors’ concerns about rising US debt levels.”
(As to number three, Wolff sums it up thusly: “because big banks and other large capitalists are among the major creditors of the US government, they wanted signs that their crisis-increased holdings of US debt were safe investments for them. Austerity policies provide just those signs.” Basically, to sum it up, austerity policies show investors that the government ranks paying lenders back as a far higher priority than, say, the health or employment of its citizens.)
While walking my dog a few minutes ago, I saw a chart that (1) made my blood boil and (2) reminded me yet again why understanding history is important.
From my last year of reading, I understood that a memo written by then-future Supreme Court Justice Powell in 1971 hugely shifted the U.S.’s economic and political history. Basically, Powell said that U.S. business was getting the shaft and needed to combine its various actors to change that situation. In response, U.S. business began acting in concert to ensure it succeeded–over labor and human rights advocates–in shaping the nation; the more resources for business, the better.
While lots of folks point to 1980–the beginning of Reagan’s presidency–as the beginning of U.S.’s takeover by corporation (“inverted totalitarianism,” per Wolin), business won some huge victories against its “detractors” in the couple years just prior. Powell had had his way, so that the foundation had already been laid for Reagan and his cronies.
(So sad for so many lives that this jackhole later became a Supreme Court justice! Business and other elite interests were given great power long before Citizens United.)
With each page of just about everything I read, I understand how the foundation for business supremacy was being crafted for at least decades before Carter’s presidency. Still, some sentences jar me especially as they remind me how much our (mis)understanding of history influences what we understand of now.
Referring to the above grid, Wolff writes, “After the war, corporations went to work to change the federal tax system. Not only did they succeed in shifting the tax burden from corporations to individuals already by 1960, but that shifting had gone on steadily to the present.”
Further, he summarizes more succinctly than anyone I’ve read so far, “The US federal tax system that right wingers portray as burdensome to the richest Americans allowed them for the last two decades to gather still greater income than everyone else. The US federal tax system enabled greater inequality.”
None of this was inevitable. It was shaped by people with shared vision and commitment. To move toward a different system–one which favors human life over corporate profits (and their executives’ obscene pay and bonuses)–will take like shared vision and commitment by people with different ideals.
In my vision, food, education, health, and shelter are human rights which want of profit cannot overcome. The U.S. tax system is completely overhauled so that corporations pay much, much higher portions of their income to taxes than do individuals with actual bellies to feed and thirsts that cannot be quenched without funds, given how privatization has granted these things to corporations (for their profit) at the expense of human wellness. Storing funds in offshore tax havens is criminal, with consequences for evasion that would help dramatically increase tax revenue to pay for life-improving human benefits. If corporations thrive, in my vision, it is because they’re bringing just benefits to all, not crushing more and more human lives so their balance sheets warrant gross bonuses.
Seeing anything like this come to fruition seems impossible … but then, the more I read history, the more I understand how today’s impossible was yesterday’s actual.
I didn’t see it a year ago, but today it’s crystal clear:
There’s hope in history.