We Were Warned of Corporatism

“Both Teddy Roosevelt and union leaders like the AFL-CIO’s Samuel Gompers decried the creation of the Rockefeller Foundation. Roosevelt’s presidential opponent, William Howard Taft, criticized legislation that would have enabled the foundation as “a bill to incorporate Mr. Rockefeller.””
~Alexis Madrigal

Neither Theodore Roosevelt nor William howard Taft were liberals, much less radical left-wingers. As right-wing imperialists born into wealth, they were part of a particular monied elite that sought to defend plutocracy with ideals of enlightened aristocracy and noblesse oblige, defend it against the New Money of those like the Robber Barons. It was a paternalism that idealized the past and sought to hold a vision of national greatness, a longing to form America as an empire in the mould of the Old World.

It was a bit of the old Tory conservatism that revered the monarchy and yet sometimes expressed a certain kind of populist disdain against propertied wealth gone out of control. Like the aristocracy of the past, they feared unregulated markets and powerful private organizations that would dominate society. This was an attitude that was common going back to the founding generation. The United States was literally founded on an intense fear of corporate power that was based on hard-won experience, what helped to incite the American Revolution.

Many of the American Founders were determined to not allow a repeat of the East India Company in the United States. So, they carefully circumscribed such potentially dangerous government-decreed corporate charters in limiting their role to a temporary service toward specific projects of public good (e.g., building a bridge). They would’ve thought it dangerous and foolish to conflate business with corporatism. But we have since then forgot this founding wisdom. So much for constitutional originalism.

It’s worse than that. We are now going a step further toward the cliff edge with taking that conflation and further conflating it with philanthropy, what some call philanthrocapitalism. Those like Bill Gates also are heavily involved in lobbying. And the crony connections are vast across the public and private sectors. They represent a powerful component of the growing deep state that overlaps with the intelligence agencies and military-industrial complex.

This is one of the ways in which capitalism will destroy itself. The success of these capitalists is leading to a corrupt power that will undermine the system that allowed some of them to work/finagle their way up into wealth. They are killing the goose that laid the golden egg. Some say this is an inevitable result of capitalism. Others disagree. In either case, it will be the result of our present capitalism, if there is not revolutionary-level reform of the system.

It won’t be an outside threat that destroys capitalism. Communism is a bogeyman. Capitalism doesn’t need enemies when it has capitalists like Gates. The rot comes from within. If you wish to put a positive spin on this, as Karl Marx did, this is simply a step in the formation of a new kind of society never before seen, a society that can’t be forced through violence but must emerge naturally in passing through this stage of capitalism like a butterfly emerging from a cocoon. Well, it sounds nice.

Whether or not it’s a new beginning, we are most definitely coming to an ending. But it could take a while, a slow torturous demise that could transpire over centuries like the decline of the Roman Empire following the Republican Era, although it maybe more likely to happen quite rapidly with climate change catastrophe. After that, we can see if societal rebirth will help us avoid a new dark age.

“Corporations are many lesser commonwealths in the bowels of a greater, like worms in the entrails of a natural man.”
~Thomas Hobbes

“No amount of charities in spending such fortunes can compensate in any way for the misconduct in acquiring them.”
~Theodore Roosevelt

* * *

Against Big Philanthropy
by Alexis Madrigal

“Big Philanthropy is definitionally a plutocratic voice in our democracy,” Reich told me, “an exercise of power by the wealthy that is unaccountable, non-transparent, donor-directed, perpetual, and tax-subsidized.”

This was not previously a minority position. If you look back to the origins of these massive foundations in the Gilded Age fortunes of Andrew Carnegie and John D. Rockefeller, their creation was massively controversial, Reich said, and for good reason.

“A hundred years ago, there was enormous skepticism that creating a philanthropic entity was either a way to cleanse your hands of the dirty way you’d made your money or, more interestingly, that it was welcome from the standpoint of democracy,” Reich told me at the Aspen Ideas Festival, which is co-hosted by the Aspen Institute and The Atlantic. “Because big philanthropy is an exercise of power, and in a democracy, any form of concentrated power deserves scrutiny, not gratitude.”

Both Teddy Roosevelt and union leaders like the AFL-CIO’s Samuel Gompers decried the creation of the Rockefeller Foundation. Roosevelt’s presidential opponent, William Howard Taft, criticized legislation that would have enabled the foundation as “a bill to incorporate Mr. Rockefeller.”

Our era has not seen similar skepticism, despite the wealth inequality that serves as the precondition for such massive foundations. Though perhaps it is returning.

On Democracy and Corporatocracy

“Whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.”
~U.S. Declaration of Independence

“Democracy was once a word of the people, a critical word, a revolutionary word. It has been stolen by those who would rule over the people, to add legitimacy to their rule…The basic idea of democracy is simple . . .
“Democracy is a word that joins demos—the people—with kratia—power . . . It describes an ideal, not a method for achieving it. It is not a kind of government, but an end of government; not a historically existing institution, but a historical project . . . if people take it up as such and struggle for it.”
~Douglas Lummis, Radical Democracy

“It is that right to local self-government – a right that we’re told that we already have, but which people discover is not there when they need it most – that serves as the guide-star of this slowly gathering movement.
“To stop them, corporate and governmental officials will be forced to slay their own sacred cow – the ‘rule of law’ – which they have used since time immemorial as their own version of ‘God said so’” Thus, governmental and corporate officials will be forced to bring the power of the system’s own courts, legislatures, and regulators crashing down on them, in the face of clear and overwhelming evidence that our food and water systems, our energy systems, and our global climate are themselves crashing as a result of policies created by those very same institutions…
“These communities’ new rule of law – made in the name of environmental and economic sanity – believes that people and nature have rights, not corporations; that new civil, political, and environmental rights must be recognized; and that we must stop (immediately) those corporate acts which harm us.”
~Thomas Linzy, Local Lawmaking: A Call for a Community Rights Movement

“The main mark of modern governments is that we do not know who governs, de facto any more than de jure. We see the politician and not his backer; still less the backer of the backer; or what is most important of all, the banker of the backer. Enthroned above all, in a manner without parallel in all past, is the veiled prophet of finance, swaying all men living by a sort of magic, and delivering oracles in a language not understood of the people.”
~J.R.R. Tolkien, quoted in Contour magazine

“The large extent of bank influence is not easily seen. We seldom see an identified bank or a money corporation candidate running for office; but when questions arise which affect them, the banks have agents at work, whose operations are the more effective because they are unseen.”
~William M. Gouge, Advisor to President Andrew Jackson, Editor fot the Philadelphia Gazette, Publisher of the “History of the American Banking System” and a “Fiscal History of Texas”

“Civil government, so far as it is instituted for the security of property, is in reality instituted for the defense of the rich against the poor, or of those who have some property against those who have none at all.”
~Adam Smith, 1776, Wealth of Nations, book V, ch.I, part II

“[T]he basic problem of legal thinkers after the Civil War was how to articulate a conception of property that could accommodate the tremendous expansion in the variety of forms of ownership spawned by a dynamic industrial society…The efforts by legal thinkers to legitimate the business corporation during the 1890’s were buttressed by a stunning reversal in American economic thought – a movement to defend and justify as inevitable the emergence of large-scale corporate concentration.”
~Morton Horwitz, The Transformation of American Law

“What did he [Bingham] think about the conversion of the Fourteenth Amendment from a protection of all constitutional rights for all citizens to a bulwark of corporate power against the protests of farmers and workers? Here we have a bit more information. Bingham later wrote that the amendment had been designed to protect natural persons, not corporations.
“That seems quite reasonable, particularly since the first sentence of Section one refers to persons ‘born or naturalized in the United States.’”
~Michael Kent Curtis, John A. Bingham and the Story of American Liberty: The Lost Cause Meets the ‘Lost Cause’, The Akron Law Review
(John Bingham was a Republican Congressman from Ohio and principal framer of the 14th Amendment to the U.S. Constitution which granted due process and equal protection under the law to freed slaves.)

“I think we would agree to describe the reality that flows from this corporate power as anti-democratic, anti-community, anti-worker, anti-person and anti-planet…Given our relative consensus on this situation, what should we be asking and doing about the corporation?…To effectively begin the work of countering what amounts to global corporate tyranny, we’ll need to do two kinds of defining: what we wish to see in the future, and what we are seeing in the present…We’ll never move these corporate behemoths out of our way with the poking sticks and thin willow reeds available to us through regulatory action…Nor will we gain their everlasting mercy with pleas for social responsibility or requests to sign a corporate ‘code of conduct,’ or the pitiful pleading for side agreements on free-trade pacts…Our colonized minds make it difficult to cut through our experience and envision real democracy. We’ve got a ‘cop in our head,’ and the cop comes from corporate headquarters…What must be done?
“When those of us who believe in an empowered citizenship see corporations spewing excrement and oppression with ever greater reach, we need to ask, ‘By what authority can corporations do that? They have no authority to do that. We never gave them authority.’ And we must work strategically to challenge their claims to authority…”
~Virginia Rasmussen, “Rethinking the Corporation”, Program on Corporations, Law & Democracy (POCLAD) principal, talk given during Women’s International League for Peace and Freedom conference, July 24-31, Baltimore, MD

Source – REAL Democracy History Calendar: July 22 – 28, July 15 – 21, & July 8 – 14

Success of Big Drug is Failure of Public Health

Pfizer has owns the rights to the drug Enbrel outside North America. Internal analysis at the company showed that there was a strong correlation to lower incidence of Alzheimer’s. It was an amazing 64% reduction. This is almost unheard of in Alzheimer’s research. At a company presentation, it was stated in no uncertain terms that, “Enbrel could potentially safely prevent, treat and slow progression of Alzheimer’s disease” (as quoted by Mark Terry).

Yet they didn’t follow up with more data analysis and clinical studies. Neither did they publicly release their findings. Pfizer can’t take all the blame, though. The company works with the Amgen in marketing Enbrel. This other drug company holds the patent and rights to market Enbrel in the United States and Canada. Both drug companies knew about the results and both remained silent. A company spokesman for Pfizer told the Washington Post that, “Science was the sole determining factor against moving forward.” I don’t doubt that is true for corporate science. But there sometimes is a vast difference between corporate science and non-profit science. This is indicated by another explanation that came out of Pfizer.

The WaPo reported that, the company “decided during its three years of internal reviews that Enbrel did not show promise for Alzheimer’s prevention because the drug does not directly reach brain tissue.” That is odd because, based on much research, we know there is more involved in Alzheimer’s than just the brain. The only proven clinical trial that has reversed Alheimer’s symptoms used a protocol that included many methods, including the ketogenic diet (see the clinical study and writings of Dr. Dale Bredesen).

The US FDA approved use of Enbrel is for the treatment of autoimmune diseases: rheumatoid arthritis, juvenile idiopathic arthritis and psoriatic arthritis, plaque psoriasis and ankylosing spondylitis. The effect it would have on Alzheimer’s is as an anti-inflammatory. This could be achieved in many ways, such as broadly reducing an overactive immunological response in the body, not only in the brain. The neurocognitive effect might be indirect and secondary to the process without the drug needing to cross the blood-brain barrier. It isn’t necessarily significant by which path, neurological or not, that it accomplishes this feat of inflammatory reduction. As reported in the WaPo:

Yet Alzheimer’s researchers believe inflammation outside the brain — called peripheral inflammation — influences inflammation within the brain.

“There is a lot of evidence suggesting that peripheral or systemic inflammation may be a driver of Alzheimer’s disease,’’ said Walker, the Johns Hopkins researcher. It is a fair hypothesis that fighting inflammation outside the brain with Enbrel will have a similar effect inside the brain, he said.

“I don’t believe Enbrel would need to cross the blood brain barrier to modulate the inflammatory/immune response within the brain,’’ Walker said.

“There is increasing evidence that peripheral inflammation can influence brain function,’’ said rheumatologist Christopher Edwards, of the University of Southampton in Britain.

I refuse to believe that the researchers at Enbrel didn’t know this basic scientific understanding and didn’t explain it to those making the decisions. Maybe that is why the scientists employed by Pfizer, in opposition to the management, were pushing for more research to be done.

Basically, it was a business decision and so it was irrelevant even if it was guaranteed to cure Alzheimer’s. In capitalism, there is no financial incentive in humanitarianism, at least not when its costly. As Enbrel was already patented for another medical use and its patent life was coming to an end, getting it patented for an entirely different health condition would have been difficult because of patent laws. It would have been a high-risk business investment with low probability of success and profit.

Since it wasn’t profitable for the company to pursue further research, it also wouldn’t have been profitable for the company to release the info so that others might pursue further research or else simply gain better understanding about the possibilities of different avenues of research. Promoting scientific debate and scientific knowledge is not part of capitalism (ditto for public health), other than as an unintentional side effect. No company will freely choose to disclose any information beyond what is necessary or else when deemed unrelated to any financial gain… that is unless required by law, in which case it wouldn’t be freely chosen.

If you want to hear defenses of the actions or rather inaction of Pfizer, some pieces have been written taking the other side of the debate: A Missed Alzheimer’s Opportunity? Not So Much by Derek Lowe, and 5 Reasons Pfizer Sat on a Potential New Alzheimer’s Drug by Cory Renauer. Pfizer also went to its own defense on social media: Pfizer takes to Twitter to refute ‘Washington Post’ story by Alison Kanski. I find the excuses unconvincing. It comes across more as apologia for capitalist realism.

Still, to be fair, there has been immense failure in Alzheimer’s research. A new drug treatment hasn’t been approved by the FDA in the past decade. But that is part of the problem with the corporate model of big drug. The only promising research in recent years is from methods other than pharmaceuticals. As far as capitalism goes, it doesn’t matter if Alzheimer’s can be treated and reversed with a multifactorial approach, by a combination of diet, nutrition, supplementation, exercise, detoxification, etc. There is no profit in this, since no company can patent it and so monopolize the market for decades. In that sense, it is pointless in blaming a corporation for acting like a corporation. This is the inevitable result of capitalism.

Following the obvious financial incentive, Pfizer has stopped Alzheimer’s research. This is problematic for public health, of course. Big biz, however, doesn’t give a flying fuck about public health. If we are seeking public health, then governments will have to massively invest in public funding of research and development as the United States did in the past. Instead, public funding has been drastically cut. This is expected in corporatocratic government where corporate interests determine public policy. It’s the nature of the beast. If we think it is morally wrong to let millions of people to suffer and die when there is no profit in helping them, then we will be forced by our collective conscience to demolish our present economic and political system and then replace it with something better.

But it goes beyond even this. The causes of inflammation are diverse. With industrialized capitalism, we are drowning in physiological and social stressors, from toxins to inequality, that constantly antagonize the body while disallowing the natural processes of healing. We need an entirely different model and paradigm to confront what is causing the worsening of health across the board: metabolic syndrome (obesity, diabetes, & heart disease), autoimmune disorders (Alzheimer’s, multiple sclerosis, etc), mood disorders (depression, anxiety, etc), and personality disorders (BPD, NPD, etc); psychosis, ADHD, autism spectrum disorders, drug addiction, and on and on. A common feature found in numerous health conditions is inflammation.

When the entire social order, from economic system to food system, is inflammatory and generally harmful to public health, what is the treatment? And even if we could find effective treatments, why would we settle for that rather than seeking cures and prevention? Why are we obsessed with symptoms, instead of going directly to the root cause of so many diseases?

* * *

Pfizer had clues its blockbuster drug could prevent Alzheimer’s. Why didn’t it tell the world?
by Christopher Rowland

A team of researchers inside Pfizer made a startling find in 2015: The company’s blockbuster rheumatoid arthritis therapy Enbrel, a powerful anti-inflammatory drug, appeared to reduce the risk of Alzheimer’s disease by 64 percent.

The results were from an analysis of hundreds of thousands of insurance claims. Verifying that the drug would actually have that effect in people would require a costly clinical trial — and after several years of internal discussion, Pfizer opted against further investigation and chose not to make the data public, the company confirmed.

Researchers in the company’s division of inflammation and immunology urged Pfizer to conduct a clinical trial on thousands of patients, which they estimated would cost $80 million, to see if the signal contained in the data was real, according to an internal company document obtained by The Washington Post.

“Enbrel could potentially safely prevent, treat and slow progression of Alzheimer’s disease,’’ said the document, a PowerPoint slide show that was prepared for review by an internal Pfizer committee in February 2018.

The company told The Post that it decided during its three years of internal reviews that Enbrel did not show promise for Alzheimer’s prevention because the drug does not directly reach brain tissue. It deemed the likelihood of a successful clinical trial to be low. A synopsis of its statistical findings prepared for outside publication, it says, did not meet its “rigorous scientific standards.’’

Science was the sole determining factor against moving forward, company spokesman Ed Harnaga said.

Pfizer Did Not Pursue Possible Evidence of Enbrel Helping with Alzheimer’s Due to Low Chance of Clinical Success
by Mark Terry

Recently released documents indicate that Pfizer spent three years reviewing whether the science supported running a trial on Enbrel in Alzheimer’s. A PowerPoint slide from a February 2018 presentation stated, “Enbrel could potentially safely prevent, treat and slow progression of Alzheimer’s disease.”

But the company told The Washington Post that during those three years, they felt that the drug didn’t show promise for Alzheimer’s because it doesn’t directly reach brain tissue. So, they believed that the clinical trial’s chances of success would be low. Pfizer spokesman Ed Harnaga told The Post that the only reason the company didn’t go forward was the science.

That may or may not be reasonable, but the company’s decision not to release or publish the data is taking more criticism, with many researchers arguing they should have made that data available to researchers.

“Of course they should. Why not?” Rudolph E. Tanzi, a top Alzheimer’s researcher with Harvard Medical School and Massachusetts General Hospital.

In fact, in an interview with Tanzi earlier this year, he noted that more and more research is focused on the role of inflammation in Alzheimer’s, particularly as the amyloid-beta theory comes under fire. In Tanzi’s opinion, and there’s quite a bit of scientific research supporting it, amyloid and tangles trigger Alzheimer’s, but they’re not enough to cause dementia. But the amyloid and tangle-driven neuronal cell death eventually hits a point where the brain’s innate immune system reacts with significant levels of neuroinflammation. Tanzi told BioSpace, “Then, exponentially more cell death occurs, which leads to symptoms of dementia and Alzheimer’s disease.”

So it seems possible that a powerful anti-inflammatory like Enbrel could have a dampening effect on the entire immune system, which might decrease Alzheimer’s risk. […]

It also seems contradictory that when so many biopharma companies are investing in artificial intelligence and data mining of real-world evidence (RWE) such as the Pfizer scientists utilized in 2015, that they would then ignore what they found.

Pfizer recognizes that it hid a drug that prevents Alzheimer’s
from The Mazatlan Post

This American media also explains in its exclusive that the role of brain inflammation in Alzheimer’s disease has been attracting the attention of academics after the failure of multiple experimental drugs that pointed to the accumulation of plaques in brain tissue.

“People who have chronic inflammation have a higher risk of developing Alzheimer’s”

Thus, they recall that in 2016 researchers from the universities of Dartmouth and Harvard published an insurance claims data study , similar to the internal findings of Pfizer (for those who refused to continue investigating the possible new use of their drug) that showed a potential benefit of Enbrel.

Enbrel “shows promise as a potential treatment” For Alzheimer’s, he pointed out.” In this study, it is said that Alzheimer’s is significantly more prevalent in patients with rheumatoid arthritis, a fact that was already known: people who have chronic inflammation have a higher risk of developing Alzheimer’s. Also, those who were taking the Pfizer drug had a decreased risk, “explains the SEN member, who points out that there is evidence in basic research.

However, Pascual Sanchez says that […] “Of course it is a piece of interesting information [published by the Washington Post], and of course it is a line that, taking into account that others have not worked, such as amyloid, we are very interested in it.” There is strong genetic evidence and targets are being developed based on modulation of inflammation. ”

“We urgently need the pharmaceutical laboratories to bet on Alzheimer’s disease. Unfortunately, Pfizer has strategically abandoned the line of Neurology, and has probably been one of the reasons why not bet on it, “says Sanchez.

The expert says that Alzheimer’s disease is very complex and” from pharmaceutically no Much progress has been made. The pharmaceutical companies that have bet for now have not achieved benefits because they have not taken new drugs, but increasingly we know more and we do better clinical trials. I think there are more options for us to find something that works. And the more you invest, and the more people think about this, the more likely we are to achieve it, “he says.

“We need to do more trials and probably need more complex approaches to this disease, we are realizing that we will need several treatments or different simultaneous approaches to treat the disease, there are many factors that are involved, such as amyloid, TAU protein, inflammation or even p43, probably if we focus only on one factor we will not succeed, we must have a more global vision of the problem and also of the solutions”, concludes Pascual Sánchez.

Pfizer, pocketing a big tax cut from Trump, will end investment in Alzheimer’s and Parkinson’s research
by Michael Hiltzik

No one would say that drug companies should engage in research as a philanthropic exercise, but within the context of the U.S. pharmaceutical industry, Pfizer looks risk-averse. The second-biggest U.S. drug company by sales (after Johnson & Johnson), Pfizer in recent years seems to have devoted more effort to financial engineering than biomedical engineering. In 2015, for instance, it announced a $160-billion merger with Allergan, the maker of Botox. The deal was a so-called inversion, aimed transparently at cutting Pfizer’s tax bill in part by eliminating U.S. tax on $147 billion in profits it had stashed overseas.

Although the company denied that the deal was “simply… a tax transaction,” the truth emerged in 2016 when the deal was canceled; the only thing that had changed was that the U.S. Treasury had implemented new rules that all but eliminated the tax savings. So, bye-bye, Allergan.

Pfizer is expected to be among the prime beneficiaries of the corporate tax cut. The measure allows companies to pay a tax rate as low as 8% on foreign earnings they bring home, a big discount from the 21% top rate the law assesses on domestic earnings, itself a big cut from the previous rate of 35%. By some estimates, that could be worth more than $5 billion to Pfizer alone, not counting any gains from the lower tax rate.

As it happens, Pfizer signaled how it would apply the tax savings even before the final passage of the tax bill: The company announced a $10-billion share buyback on Dec. 18, four days before President Trump signed the tax cut into law. That buyback was on top of $6.4 billion left to be spent from a previous buyback plan, and was accompanied by a 6% increase in the company’s stock dividend, which will be worth roughly another half-billion dollars a year.

For comparison’s sake, Pfizer’s entire research and development budget averaged about $8 billion a year from 2014 through 2016.

Pfizer’s diversion of its tax break to shareholders parallels its behavior the last time American companies received a tax holiday on repatriated foreign earnings. That was in 2004, after corporations promised to apply their tax savings to hiring more workers and investing in their business. Instead, they laid off workers, bought back their shares, and pumped up their CEO compensation.

Pfizer brought home more than any other company in that amnesty, $35.5 billion, according to a 2007 investigation by Sen. Carl Levin, D-Mich. From 2004 through 2007, Levin reported, Pfizer bought back more than $27 billion in stock and reduced employment by 11,748 workers.

This time around, the company is again gifting its shareholders and laying off workers. Abandoning a challenging research field is a new wrinkle, however.

What’s most discouraging to patient advocates is the dearth of alternatives to big pharmaceutical companies in brain research. Pfizer’s withdrawal, especially if it prompts other big pharma companies to flee the field, places more of the burden on small biotech firms, academia, foundations and government. The news “reinforces the urgent need for additional federal investment in Alzheimer’s research,” a spokesman for the Alzheimer’s Foundation of America told me. But the Trump administration has placed funding for government research projects in almost all scientific fields on the chopping block.

Some experts recognize that the big drug companies may have been less than sturdy partners all along. “Many groups have been hoping for quick wins in the [central nervous system] space and we haven’t succeeded,” Beck of the Parkinson’s Foundation says, “so there’s some frustration from the viewpoint of management that we’re not getting the progress we need.”

He says his organization and others will still focus on the most promising pathway to a cure: Trying to understand the mechanisms of these diseases, which are still very murky. Only once those riddles are solved can drug research truly move ahead.

But as long as purely economic considerations drive drug R&D, the prospects for progress are dim. The Republicans who drafted the corporate tax cut promised that it would lead to more business investment and therefore economic growth. But as Pfizer demonstrates, all the incentives run in the opposite direction: More investment in shareholder welfare, less economic growth, and less attention to what corporations are supposed to exist for — improving people’s lives.

Profits before people: capitalists abandon Alzheimer’s and Parkinson’s research
by Joe Attard

Pfizer’s announcement is an especially striking testament to the horrors of capitalism when seen in context with the damage caused by Alzheimer’s and Parkinson’s. For example, the global cost of Alzheimer’s and dementia (in terms of medical care, social care and hospices) is estimated at $605 billion: equivalent to 1 percent of the entire world’s gross domestic product. Meanwhile, the financial impact incurred for a UK citizen living with Parkinson’s disease (which affects mobility, and eventually communication) are £16,000 per year on average – factoring in assistance with cleaning, loss of income and benefits and so on. For the poorest Parkinson’s’ sufferers, professional help might be unaffordable, placing the duty of care on family members.

Pfizer pulling out of Alzheimer’s and Parkinson’s research will shunt more of the burden of seeking treatments for these diseases on the public sector – via universities, for example. That is, as is becoming the norm, they leave the bill for research to be paid for by taxpayers, only to take over the patents for small change at a later stage. […]

The main driving force for Pfizer is cold, hard profit. Its R&D chief, Mikael Dolsten, recently told a J.P. Morgan healthcare conference that the company bases its R&D strategy on drugs with “multi-billion-dollar blockbuster potential.” These drug giants focus their attention on whatever nets the biggest windfalls with the least amount of effort, which can lead to an emphasis on manufacturing financial loopholes rather than medicines. In 2015, Pfizer acquired Allergan (the company that makes Botox) in a $160-billion merger: a move that eliminated U.S. tax on $147 billion in profits it had stashed overseas. In Britain, despite making sales of between £1.3bn and £1.8bn annually between 2001 and 2014, Pfizer paid almost no tax over the period because it announced major operating losses each year, except for a tiny profit of £9m in 2013. The company is also expected to benefit substantially from Donald Trump’s new corporate tax cut, to the tune of $5bn: 10 times more than the US government’s 2017 pledge to Alzheimer’s research, and more than half of Pfizer’s entire research and development budget from 2014 through 2016. Donald Trump has generously rewarded Pfizer’s shareholders, who have responded by slashing early development research on neurological diseases, firing hundreds of employees and continuing to inflate the cost of its products.

This should all come as no surprise. The whole medical industry has become thoroughly parasitical, making billions from ripping off state healthcare services, withholding essential medicines from Third World countries and lobbying governments to deregulate the healthcare market. Pfizer was itself hit with a record fine in 2016 after it charged the NHS £50m for an anti-epilepsy drug: up from £2m in 2013. For years Pfizer withheld fluconzale (a powerful anti-fungal agent that can be used to treat AIDS-related diseases like oral thrush and cryptococcal meningitis) from the developing world, while continuing to sell it to wealthy American and European patients. Only after provoking international outrage did it make the drug available to NGOs operating in developing countries with a greater than 1 percent prevalence of HIV/AIDS in 2001. The firm has also never been shy about using its financial clout to get its way in the political sphere, spending $25 million in 2010 alone on lobbying for healthcare deregulation in the USA. Big business and the state are connected to each other by a thousand threads. Despite Donald Trump’s promises during the primaries that he would reign in Big Pharma, his appointment of former pharmaceutical executive Alex Azar to replace Tom Price as Health and Human Services Secretary suggests otherwise.

In stark contrast to claims that free market competition fosters innovation, the private pharmaceutical industry reveals the stagnation, irrationality and base cruelty of capitalism in its state of senile decay. From Martin Shkreli’s jacking up the cost of Daraprim (a drug used in the treatment of AIDS-related conditions) from US$13.50 to US$750 per pill; to drug giants profiteering off AIDS epidemics in Africa and Asia; to Big Pharma taking public money (in the form of tendered contracts) from the NHS and stashing it in tax havens, the logic of capitalism ensures that healthy profits always take precedence over public health. Moreover, Pfizer’s actions demonstrate the sheer barbarism of allowing vast reserves of money, expertise and talent to be wasted or misdirected by private medical firms. Permitting research priorities to be dictated by market forces has resulted in pharmaceutical giants directing more attention towards lifestyle drugs targeted at the wealthy – designed to treat such tragic conditions as obesity, baldness, wrinkles and impotence. There is a multi-billion-dollar market for such products. Meanwhile, the difficult, expensive work of producing treatments for illnesses like Alzheimer’s and Parkinson’s disease is sacrificed to the bottom line.

* * *

Essentialism On the Decline

Before getting to the topic of essentialism, let me take an indirect approach. In reading about paleolithic diets and traditional foods, a recurring theme is inflammation, specifically as it relates to the health of the gut-brain network and immune system.

The paradigm change this signifies is that seemingly separate diseases with different diagnostic labels often have underlying commonalities. They share overlapping sets of causal and contributing factors, biological processes and symptoms. This is why simple dietary changes can have a profound effect on numerous health conditions. For some, the diseased state expresses as mood disorders and for others as autoimmune disorders and for still others something entirely else, but there are immense commonalities between them all. The differences have more to do with how dysbiosis and dysfunction happens to develop, where it takes hold in the body, and so what symptoms are experienced.

From a paleo diet perspective in treating both patients and her own multiple sclerosis, Terry Wahls gets at this point in a straightforward manner (p. 47): “In a very real sense, we all have the same disease because all disease begins with broken, incorrect biochemistry and disordered communication within and between our cells. […] Inside, the distinction between these autoimmune diseases is, frankly, fairly arbitrary”. In How Emotions Are Made, Lisa Feldman Barrett wrote (Kindle Locations 3834-3850):

“Inflammation has been a game-changer for our understanding of mental illness. For many years, scientists and clinicians held a classical view of mental illnesses like chronic stress, chronic pain, anxiety, and depression. Each ailment was believed to have a biological fingerprint that distinguished it from all others. Researchers would ask essentialist questions that assume each disorder is distinct: “How does depression impact your body? How does emotion influence pain? Why do anxiety and depression frequently co-occur?” 9

“More recently, the dividing lines between these illnesses have been evaporating. People who are diagnosed with the same-named disorder may have greatly diverse symptoms— variation is the norm. At the same time, different disorders overlap: they share symptoms, they cause atrophy in the same brain regions, their sufferers exhibit low emotional granularity, and some of the same medications are prescribed as effective.

“As a result of these findings, researchers are moving away from a classical view of different illnesses with distinct essences. They instead focus on a set of common ingredients that leave people vulnerable to these various disorders, such as genetic factors, insomnia, and damage to the interoceptive network or key hubs in the brain (chapter 6). If these areas become damaged, the brain is in big trouble: depression, panic disorder, schizophrenia, autism, dyslexia, chronic pain, dementia, Parkinson’s disease, and attention deficit hyperactivity disorder are all associated with hub damage. 10

“My view is that some major illnesses considered distinct and “mental” are all rooted in a chronically unbalanced body budget and unbridled inflammation. We categorize and name them as different disorders, based on context, much like we categorize and name the same bodily changes as different emotions. If I’m correct, then questions like, “Why do anxiety and depression frequently co-occur?” are no longer mysteries because, like emotions, these illnesses do not have firm boundaries in nature.”

What jumped out at me was the conventional view of disease as essentialist, and hence the related essentialism in biology and psychology.

[…]

Researchers have found that there are prospective causes to be studied. Consider proprionate, a substance discussed by Alanna Collen (10% Human, p. 83): “although propionate was an important compound in the body, it was also used as a preservative in bread products – the very foods many autistic children crave. To top it all off, clostridia species are known to produce propionate. In itself, propionate is not ‘bad’, but MacFabe began to wonder whether autistic children were getting an overdose.” This might explain why antibiotics helped many with autism, as it would have been knocking off the clostridia population that was boosting propionate. To emphasize this point, when rodents were injected with propionate, they exhibited the precise behaviors of autism and they too showed inflammation in the brain. The fact that autistics often have brain inflammation, an unhealthy condition, is strong evidence that autism shouldn’t be taken as mere neurodiversity (and, among autistics, the commonality of inflammation-related gut issues emphasizes this point).

There is no doubt that genetic determinism, like the belief in an eternal soul, can be comforting. We identify with our genes, as we inherit them and are born with them. But to speak of inflammation or propionate or whatever makes it seem like we are victims of externalities. And it means we aren’t isolated individuals to be blamed or to take credit for who we are. To return to Collen (pp. 88-89):

“In health, we like to think we are the products of our genes and experiences. Most of us credit our virtues to the hurdles we have jumped, the pits we have climbed out of, and the triumphs we have fought for. We see our underlying personalities as fixed entities – ‘I am just not a risk-taker’, or ‘I like things to be organised’ – as if these are a result of something intrinsic to us. Our achievements are down to determination, and our relationships reflect the strength of our characters. Or so we like to think.

“But what does it mean for free will and accomplishment, if we are not our own masters? What does it mean for human nature, and for our sense of self? The idea that Toxoplasma, or any other microbe inhabiting your body, might contribute to your feelings, decisions and actions, is quite bewildering. But if that’s not mind-bending enough for you, consider this: microbes are transmissible. Just as a cold virus or a bacterial throat infection can be passed from one person to another, so can the microbiota. The idea that the make-up of your microbial community might be influenced by the people you meet and the places you go lends new meaning to the idea of cultural mind-expansion. At its simplest, sharing food and toilets with other people could provide opportunity for microbial exchange, for better or worse. Whether it might be possible to pick up microbes that encourage entrepreneurship at a business school, or a thrill-seeking love of motorbiking at a race track, is anyone’s guess for now, but the idea of personality traits being passed from person to person truly is mind-expanding.”

This goes beyond the personal level, which lends a greater threat to the proposal. Our respective societies, communities, etc might be heavily influenced by environmental factors that we can’t see. A ton of research shows the tremendous impact of parasites, heavy metal toxins, food additives, farm chemicals, hormones, hormone mimics, hormone disruptors, etc. Entire regions might be shaped by even a single species of parasite, such as how higher rates of toxoplasmosis gondii in New England is directly correlated to higher rates of neuroticism (see What do we inherit? And from whom? & Uncomfortable Questions About Ideology).

Health From Generation To Generation

To emphasize this point, the testing of newborn babies in the United States shows that they’ve already accumulated on average more than 200 synthetic chemicals from within the womb; and then imagine all the further chemicals they get from the breast milk of their unhealthy mothers along with all kinds of crap in formulas and in their environments (e.g., carcinogenic fire retardants that they breathe 24/7). Lead toxicity has decreased since my own childhood and that is a good thing, but thousands of new toxins and other chemicals have replaced it. On top of that, the hormones, hormone mimics, and hormone disruptors add to dysbiosis and disease — some suggesting this is a cause of puberty’s greater variance than in past generations, either coming earlier or later depending on gender and other factors (maybe partly explaining the reversal and divergence of educational attainment for girls and boys). Added to this mix, this is the first generation of human guinea pigs to be heavily medicated from childhood, much of it medications that have been shown to permanently alter neurocognitive development.

A major factor in many modern diseases is inflammation. This has many causes from leaky gut to toxicity, the former related to diet and often contributing to the latter (in how the leaky gut allows molecules to more easily cross the gut lining and get into the bloodstream where they can freely travel throughout the body — causing autoimmune disorders, allergies, asthma, rheumatoid arthritis, depression, etc). But obesity is another main cause of inflammation. And one might note that, when the body is overloaded and not functioning optimally, excess toxins are stored in fat cells — which makes losing weight even more difficult as toxins are released back into the body, and if not flushed out causing one to feel sick and tired.

It’s not simply bad lifestyle choices. We are living in unnatural and often outright toxic conditions. Many of the symptoms that we categorize as diseases are the bodies attempt to make the best of a bad situation. All of this adds up to a dysfunctional level across society. Our healthcare system is already too expensive for most people to afford. And the largest part of public funding for healthcare is going to diabetes alone. But the saddest part is the severe decrease in quality of life, as the rate of mood and personality disorders skyrockets. It’s not just diet. For whatever reason (toxins? stress?), with greater urbanization has come greater levels of schizophrenia and psychosis. And autism, a rare condition in the past, has become highly prevalent (by the way, one of the proven effective treatments for autism is a paleo/keto diet; also effective for autoimmune conditions among much else).

It’s getting worse and worse, generation after generation. Imagine what this means in terms of epigenetics and transgenerational trauma, as nutritional deficits and microbiotic decimation accumulates, exacerbated by a society driven mad through inequality and instability, stress and anxiety. If not for nutrients added to our nutrient poor food and supplements added to our unhealthy diet, we’d already be dying out as a society and our civilization would’ve collapsed along with it (maybe similar to how some conjecture the Roman Empire weakened as lead toxicity increased in the population). Under these conditions, that children are our future may not be an affirmation of hope. Nor may these children be filled with gratitude once they’ve reached adulthood and come to realize what we did to them and the world we left them. On the other hand, we aren’t forced to embrace fatalism and cynicism. We already know what to do to turn around all of these problems. And we don’t lack the money or other resources to do what needs to be done. All that we are waiting for is public demand and political will, although that might first require our society reaching a point of existential crisis… we are getting close.

The stumbling block is that there is no profit in the ‘healthcare’ industry for advocating, promoting, incentivizing, and ensuring healthy diet and healthy conditions for a healthy population. Quite the opposite. If disease profiteering was made illegal, there would be trillions of dollars of lost profit every year. Disease is the reality of capitalist realism, a diseased economic system and social order. This collective state of sickliness has become the norm and vested interests will go to great lengths to defend the status quo. But for most who benefit from the dysfunctional and destructive system, they never have to give it much thought. When my mother brought my nephew to the doctor, she pointed out how he is constantly sick and constantly eating a poor diet. The doctor’s response was that this was ‘normal’ for kids (these days), which might be true but the doctor should be shocked and shamed by his own admission. As apathy takes hold and we lose a sense of hope, low standards fall ever lower.

Fasting, Calorie Restriction, and Ketosis

Fasting, for example, increases the level of neurotransmitters such as serotonin, dopamine, and norepinephrine while temporarily reducing the brains release and use of them; plus, serotonin and its precursor tryptophan are made more available to the brain. So, it allows your reserves of neurotransmitters to rebuild to higher levels. That is partly why a ketogenic diet, along with the brains efficient use of ketones, shows improvements in behavior, learning, memory, acuity, focus, vigilance, and mood (such as sense of well-being and sometimes euphoria); with specific benefits, to take a couple of examples, in cerebral blood flow and prefrontal-cortex-related cognitive functions (mental flexibility and set shifting); while also promoting stress resistance, inflammation reduction, weight loss, and metabolism, and while decreasing free radical damage, blood pressure, heart rate, and glucose levels. Many of these are similar benefits as seen with strenuous exercise.

We know so much about this because the ketogenic diet is the only diet that has been specifically and primarily studied in terms of neurological diseases, going back to early 20th century research on epileptic seizures and autism, was shown effective for other conditions later in the century (e.g., V. A. Angelillo et al, Effects of low and high carbohydrate feedings in ambulatory patients with chronic obstructive pulmonary disease and chronic hypercapnia), and more recently with positive results seen in numerous other conditions (Dr. Terry Wahl’s work on multiple sclerosis, Dr. Dale Bredesen’s work on Alzheimer’s, etc). By the way, the direction of causality can also go the other way around, from brain to gut: “Studies also suggest that overwhelming systemic stress and inflammation—such as that induced via severe burn injury—can also produce characteristic acute changes in the gut microbiota within just one day of the sustained insult [15].” (Rasnik K. Singh et al, Influence of diet on the gut microbiome and implications for human health). And see:

“Various afferent or efferent pathways are involved in the MGB axis. Antibiotics, environmental and infectious agents, intestinal neurotransmitters/neuromodulators, sensory vagal fibers, cytokines, essential metabolites, all convey information about the intestinal state to the CNS. Conversely, the HPA axis, the CNS regulatory areas of satiety and neuropeptides released from sensory nerve fibers affect the gut microbiota composition directly or through nutrient availability. Such interactions appear to influence the pathogenesis of a number of disorders in which inflammation is implicated such as mood disorder, autism-spectrum disorders (ASDs), attention-deficit hypersensitivity disorder (ADHD), multiple sclerosis (MS) and obesity.” (Anastasia I. Petra et al, Gut-Microbiota-Brain Axis and Its Effect on Neuropsychiatric Disorders With Suspected Immune Dysregulation) […]

For example, a ketogenic diet modulates the levels of the microbes Akkermansia muciniphila, Lactobacillus, and Desulfovibrio (Lucille M. Yanckello, Diet Alters Gut Microbiome and Improves Brain Functions). It is the microbes that mediate the influence on both epileptic seizures and autism, such that Akkermansia is decreased in the former and increased in the latter, that is to say the ketogenic diet helps the gut regain balance no matter which direction the imabalance is. In the case of epileptic seizures, Akkermansia spurs the growth of Parabacteroides which alters neurotransmission by elevating the GABA/glutamate ratio (there is glutamate again): “the hippocampus of the microbe-protected mice had increased levels of the neurotransmitter GABA, which silences neurons, relative to glutamate, which activates them” (Carolyn Beans, Mouse microbiome findings offer insights into why a high-fat, low-carb diet helps epileptic children), but no such effect was found in germ-free mice, that is to say with no microbiome (similar results were found in human studies: Y. Zhang, Altered gut microbiome composition in children with refractory epilepsy after ketogenic diet). Besides reducing seizures, “GABA is a neurotransmitter that calms the body. Higher GABA to glutamate ratios has been shown to alleviate depression, reduce anxiety levels, lessen insomnia, reduce the severity of PMS symptoms, increase growth hormone, improve focus, and reduce systemic inflammation” (MTHFR Support, Can Eating A Ketogenic Diet Change Our Microbiome?). To throw out the other interesting mechanism, consider Desulfovibrio. Ketosis reduces its numbers and that is a good thing since it causes leakiness of the gut barrier, and what causes leakiness in one part of the body can cause it elsewhere as well such as the brain barrier. Autoimmune responses and inflammation can follow. This is why ketosis has been found beneficial for preventing and treating neurodegenerative conditions like Alzheimer’s (plus, ketones are a useful alternative fuel for Alzheimer’s since their brain cells begin starving to death for loss of the capacity to use glucose as a fuel).

All of this involves the factors that increase and reduce inflammation: “KD also increased the relative abundance of putatively beneficial gut microbiota (Akkermansia muciniphila and Lactobacillus), and reduced that of putatively pro-inflammatory taxa (Desulfovibrio and Turicibacter).” (David Ma et al, Ketogenic diet enhances neurovascular function with altered gut microbiome in young healthy mice). Besides the microbiome itself, this has immense impact on leakiness and autoimmune conditions, with this allowing inflammation to show up in numerous areas of the body, including the brain of course. Inflammation is found in conditions such as depression and schizophrenia. Even without knowing this mechanism, much earlier research has long established that ketosis reduces inflammation.

Trends in Depression and Suicide Rates

Stephen Ilardi made two very important points.

First, depression is a disease of civilization. He spoke of research done on a hunter-gatherer tribal people. What the researcher found was that depression was almost non-existent among them. They lived a hard life and often hard deaths, but they weren’t clinically depressed. Nor did they have many of the other diseases of civilization, all of which are related to inflammation in the body.

He points out that studies have shown that depression is related to inflammation in the brain, at least partly caused by an unhealthy ratio between Omega 6 fats and Omega 3 fats. Combined with the stresses and social isolation of modern society, clinical depression has become a massive problem.

Second, clinical depression is a growing problem. Each generation has higher rates of depression than the generation before. It correctly can be called an epidemic at this point and it increases as people age. The younger generations will as they age, if the pattern holds, have 50% or more experiencing clinical depression.

This gets at an issue I continually return to. Everything is getting worse for the young generation such as poverty, economic inequality, unemployment and homelessness. My generation is the first generation do worse than their parents in the 20th century. My generation as children had poverty rates not seen since the Great Depression and had the worst child suicide rates since such things were recorded. How bad does society have to get before even children become so desperate and hopeless that they kill themselves?

Most people in the older generations never personally experienced these kinds of conditions. Because of this, they have no tangible understanding, no sympathy. They can’t see how this is a systemic problem throughout society, a problem transcending individuals and even generations.

I’ve previously discussed this a bit in terms of capitalist realism (see here and here), but I’ve never gone into much detail about this before. The analysis behind the concept of capitalist realism is based on the collective inability to imagine alternatives and hence collective inability to perceive the problems of the present system. The individual is the product and the scapegoat of capitalist realism.

Trump’s Corporatism Is Not New

Donald Trump as president is promoting corporatism, if not corporatocracy. It is the same old corporate welfare and corporate socialism, but even greater. He did promise to make America great again. His supporters forgot to ask about the details, though.

He is giving out subsidies and bailouts to particular companies and sectors, which means picking the winners and losers. It doesn’t even follow an ideological pattern, as he has simultaneously criticized wind energy while quietly subsidizing it. On top of that, he is using tariffs and trade war as economic protectionism, more akin to how the old empires used to operate — with about 12 percent of US imports during 2018 having fallen under Trump’s trade protectionism. Nor did Trump eliminate any of the subsidies and tariffs he inherited. He even had the audacity to present adding even more farm subsidies as if they were his own original idea, never before tried.

If a Democratic president did a fraction of this, Republicans would call it communism, although it would be more fair to call it fascism or well down that path. Instead, some supposed “fiscal conservatives” (a meaningless term even at the best of times) are proclaiming Trump’s policies as defending “free trade” (which in turn demonstrates how meaningless that is as well) — not unlike how constitutional conservatives will complain about Democrats for judicial activism and so use that complaint as a justification to vote for Republican politicians who promote their own preferred judicial activism. This psychotic disconnection from reality is impressive, to say the least.

I’m neither for nor against government regulation on principle, and so I’m not critical of Trump for being an economic interventionist — the entire system is the problem from my perspective. But I do like to label things correctly, in order to promote rational and fair debate (such intellectual ideals sound quaint these days). It is dishonest and plain depressing to call Trump’s policies anti-regulatory because he has helped further empower corporate rule within the political system and has attempted to use the US government to enforce US economic might throughout the world. If this is deregulation, I wonder what regulation looks like?

In the end, the rhetoric of neoliberalism always translates as the policies of neoconservatism. Something like NAFTA, for example, was always intended as economic interventionism and corporate protectionism — actual free trade would disallow corporate charters and international trade agreements militarily enforced by imperial-style governments, instead requiring each business to freely determine its own trade relations. It is why the rhetoric of “free trade” always goes hand in hand with trade sanctions, wars of aggression, CIA covert operations, etc — along with the numerous forms of corporate welfare (e.g., natural resources on public lands being sold at below market prices). That is to say it is about the wealthy and powerful maintaining and extending their wealth and power by any means necessary. This form of nationalism is what tends to get ramped up more overtly before major international conflicts, maybe at present indicating the early stages of World War III. I don’t doubt that Trump wants to be a war president with war powers.

Trump doesn’t care about economics, much less the American people. He is a narcissist. It’s a power game to him. He has threatened other countries to do what he wants and when they refused his ego was hurt and so he is retaliating. As president, he now sees the US government and economy as an extension of himself. And he has never experienced real consequences for any action he has taken in his entire life. It’s all a game, until it suddenly becomes real. After everything goes to hell, I wouldn’t mind seeing footage of Trump being pulled out of a hiding hole like Saddam Hussein.

It’s not really about Trump, though. He isn’t doing anything now that Republicans and right-wingers haven’t been supporting and inciting for decades. Trump is simply a version of Ronald Reagan in having began his presidency already in a state of dementia — one might call it late stage Reaganism. Even Trump’s bigotry is simply a more open expression of the dog whistle rhetoric that got so many Republicans elected over American history. Democrat’s have played their role as well with Jimmy Carter’s fiscal policies and anti-labor stance and later Bill Clinton’s corporatist ‘deregulation’ and racist crime bill (a speech about which Clinton gave in front of a KKK memorial with black prisoners chained behind him). Worse still, executive power has been increasing in every administration for decades with full support of Congress, and Barack Obama could have reversed this course but he didn’t and so opened the door for Trump.

This situation has been a long time coming. Trump is simply the fruit of bipartisan corruption and corporatism. This is the American Empire, what it always has been and becoming worse (inverted totalitarianism is what America will likely become, assuming we aren’t already there). The sad state of affairs only stands out for what it is because of the distorting lens of Trump’s personality, his unintentional way of speaking bluntly that almost approximates honesty on occasion. He has revealed what for so long remained hidden in the mainstream mind. But now that we have been forced to see what so many of us didn’t want to see and can’t unsee, what should we do as a society?

* * *

Protectionism was threatening global supply chains before Trump
by Chad Bown

Trump’s Protectionist Con Is Not New: Remembering The Bush Steel Tariff
by Bill Scher

Trump’s Allies Say He Really Wants Free Trade. Fat Chance.
by Ramesh Ponnuru

Trump Is a Protectionist — But Who Is He Protecting?
by Robert A. Blecker

Steel Profits Gain, but Steel Users Pay, under Trump’s Protectionism
by Gary Clyde Hufbauer (PIIE) and Euijin Jung

Trump’s corporate welfare problem
by Timothy P. Carney

Measuring Trump’s 2018 Trade Protection: Five Takeaways
by Chad P. Bown and Eva (Yiwen) Zhang

The High Price of High Tariffs
by Tori K. Whiting

Trump’s Tariffs Grow Government
by Jordan Bruneau

Trump Administration Issues 30% Solar Panel Import Tariff
by Julia Pyper

Trump’s $12 Billion Bailout Is No Remedy for Farmers Caught in Trade War
by Keith Johnson

 

Corporate Control, from the EU to the US

There is a recent incident of the EU putting out corporate propaganda. An EU report directly plagiarized a paper written by big ag, in ensuring the public that glyphosate (Roundup) is a healthy additive to your family’s diet and so there is no need to strictly regulate it.

“The BfR [Germany’s Federal Institute for Risk Assessment commissioned by the EU] had thus copied Monsanto’s explanation of Monsanto’s approach in evaluating the published literature, yet had presented it as the approach of the authority. This is a striking example of deception regarding true authorship.”
(Joseph Mercola, EU Infiltrated by Pesticide Industry Plagiarizes Safety Study)

Don’t worry about it. Monsanto’s products are safe and good. How do we know? Because Monsanto told us so. It’s amazing they get away this kind of thing. And they do it all the time.

Corporate lobbyists regularly have direct influence over politicians. They even sometimes write the bills that get passed into laws. And that is on top of regulatory capture, revolving doors, legalized bribery, etc. I don’t know why we tolerate this. It’s so often done brazenly, as if they are rubbing our faces in it, daring us to try to stop them, as if to demonstrate to us that we are powerless and so we should just cynically accept our subordinate position.

I’m so often reminded of the actions of the East India Company prior to the American Revolution. They thought they were above all morality and laws, beholden to no one. They began taking on the powers of a government, as they piggybacked on British imperialism. That was the first era when corporatism took hold in the Anglo-American world.

It shouldn’t surprise any of us by now. Think about it.

Western governments on behalf of corporations have regularly harmed and killed millions of innocents through trade agreements, sanctions, wars of aggression, coups, training paramilitary groups, etc in order to ensure for corporations access to trade routes, natural resources, and cheap labor (e.g., Hillary Clinton as Secretary of State intervened in Haiti to drive down wages so as to maintain cheap labor for US corporations, which is why so many Haitian-Americans voted for Trump and helped him to win Florida). A governing body like the EU putting out corporate propaganda is a small act in the big scheme.

Our governments, especially in the US, don’t represent the citizenry. Generations of attempts at reform from within the system have mostly failed, although a few successes here and there. The US government is more corporatist now than at any prior point in history. Yet every election cycle candidates in both parties promise all kinds of things. That doesn’t stop the system from continuing on as before in serving big biz, as scientific studies have shown. If more of the same keeps resulting in more of the same, maybe it’s time we did something different.

The majority of the American public has been steadily moving left in their policy positions for decades. At this point, the average American is to the left of both parties on many major issues. When some political, media, or think tank elite speaks of ‘centrism’ and ‘moderation’, ask yourself what is the defining frame? Well, obviously they mean moderating toward the center of power, not moderating toward the center of majority support. The problem is the majority doesn’t know it is a majority because the propaganda campaign has been so highly effective with near total control of the party system and corporate media.

Cracks are beginning to show, though. In the past, the gatekeepers would have so tightly controlled these issues that the American public would rarely have heard about any of it. But the corporate media stranglehold is beginning to loosen. Or maybe some of the ruling elite are finally coming around to the sense of self-preservation that motivated a born plutocrat like Theodore Roosevelt to reign in corporate wealth and power.

* * *

‘Call It the Oppression of the Supermajority’: Americans Eager for Bold Change, So Why Can’t They Get It?
by Jake Johnson, Common Dreams

Most Americans support Medicare for All, higher taxes on the rich, a Green New Deal, and other major items on the progressive agenda—so why has Congress failed to enact them?

The reason, Columbia University Law School professor Tim Wu argued in an op-ed for the New York Times on Tuesday, is that the influence of corporations and the donor class on the American political system has drowned out the policy desires of the public.

“In our era, it is primarily Congress that prevents popular laws from being passed or getting serious consideration. (Holding an occasional hearing does not count as ‘doing something’),” Wu wrote. “Entire categories of public policy options are effectively off-limits because of the combined influence of industry groups and donor interests.”

To bolster his argument, Wu rattled off a number of policies that—despite polling extremely well among large, bipartisan swaths of the American public—have not garnered enough support among lawmakers to pass Congress.

“About 75 percent of Americans favor higher taxes for the ultra-wealthy. The idea of a federal law that would guarantee paid maternity leave attracts 67 percent support,” Wu noted. “Eighty-three percent favor strong net neutrality rules for broadband, and more than 60 percent want stronger privacy laws. Seventy-one percent think we should be able to buy drugs imported from Canada, and 92 percent want Medicare to negotiate for lower drug prices. The list goes on.”

Since the election of President Donald Trump in 2016, Congress has in many cases done the opposite of what most Americans want by slashing taxes on the richfailing to restore net neutrality rules, and attempting to strip healthcare from millions of Americans.

“The defining political fact of our time is not polarization. It’s the inability of even large bipartisan majorities to get what they want on issues like these,” argued Wu. “Call it the oppression of the supermajority. Ignoring what most of the country wants—as much as demagogy and political divisiveness—is what is making the public so angry.”

Wu’s contention that the “combined influence” of the donor class and big business is significantly responsible for Congress’ refusal to enact popular policies matches the conclusion of a 2014 study (pdf) by political scientists Martin Gilens and Benjamin Page, who found that in the United States, “the majority does not rule—at least not in the causal sense of actually determining policy outcomes.”

“When a majority of citizens disagrees with economic elites or with organized interests, they generally lose,” Gilens and Page wrote. “Moreover, because of the strong status quo bias built into the U.S. political system, even when fairly large majorities of Americans favor policy change, they generally do not get it.”

A Plutocrat Criticizing Plutocrats in Defense of Plutocracy

On C-SPAN’s After Words, Koch lobbyist and Catholic conservative Matt Schlapp interviewed self-avowed elitist Tucker Carlson from Fox News. The purpose of the interview is Carlson’s new book, Ship of Fools. I don’t know much about him nor have I read his book. The only reason I watched it was because my dad cajoled me into doing so. Even though my dad strongly dislikes Carlson on his new show, he took this interview as important and to the point. I might agree.

Carlson regularly states that he isn’t that smart and he is right. His intellect is rather mundane, he offers no new insights, and he admits that he was wrong about so much of what he has believed and supported. But what makes the interview worthwhile is that, if one ignores the right-wing talking points, he expresses something resembling honesty. He poses as a humble Christian speaking the truth and, as easy as it would be to dismiss him, I’m feeling generous in taking him at face value for the moment.

Much of what he says has been said better by left-wingers for generations. Some of these criticisms are so typical of the far left that, in the Democratic Party, they are beyond the pale. The message is essentially the same as Nick Hanauer, another rich white guy, warning about the pitchforks coming for plutocrats (Hanauer once said of his fellow Democrat and former business associate, Jeff Bezos, that he’ll do the right thing when someone points a gun at his head). Carlson himself not that long ago, if he had heard someone say what he is saying now, would have called that person radical, unAmerican, and maybe evil. Instead, as a defender of capitalism, he literally called evil those CEOs who wreck their corporations and then take large bonuses.

This is drawing a line in the sand. It is the conviction that there is a moral order that trumps all else. He didn’t say that these money-mongers are psychopathic, narcissistic, or Machiavellian. Such terms have no moral punch to them. Carlson didn’t merely call something bad or wrong but evil. And he didn’t say he hated the sin but loved the sinner. No, these corrupt and selfish individuals were deemed evil, the ultimate moral judgment. When I pointed out this strong language to my dad, he said it was in line with his own Christian views.

For many conservatives and also for many establishment liberals, this is a rare moment when they might hear this message in the corporatist media, whether or not they listen. If they won’t pay attention to those who have been warning about this sad state of affairs for longer than I’ve been alive, let us hope they will finally take notice of those in positions of wealth, power, and authority when they say the exact same thing.

Tucker Carlson is basically telling the ruling elite that the game is up. The only reason he is warning his fellow plutocrats, as he states in no uncertain terms, is because he fears losing his comfortable lifestyle if the populists gain power. And his fear isn’t idle, considering that a while back protesters gathered outside of his house and chanted, “Tucker Carlson, we will fight! We know where you sleep at night!” The natives are restless. I guess he is hoping for a plutocrat like Theodore Roosevelt to ride into power and then reign in the worst aspects of capitalism in order to prop it up for another generation or two.

Good luck with that…

The United States was always this way

“The real difficulty is with the vast wealth and power in the hands of the few and the unscrupulous who represent or control capital. Hundreds of laws of Congress and the state legislatures are in the interest of these men and against the interests of workingmen. These need to be exposed and repealed. All laws on corporations, on taxation, on trusts, wills, descent, and the like, need examination and extensive change. This is a government of the people, by the people, and for the people no longer. It is a government of corporations, by corporations, and for corporations.”

―Diary and Letters of Rutherford Birchard Hayes: Nineteenth President of the United States, (from REAL Democracy History Calendar: October 1 – 7)

Voices Crazy and Silenced

As has been in the news, ABC cancelled the revamped tv show Roseanne. It was essentially the firing of the lead actress, Roseanne Barr, for a racist tweet. If it were only so easy to fire the ruling elite, cretinous cronyists that they are, for things as bad and far worse. It’s a sign of the times that a mad man is the head of state who brings out the craziness in supporters and detractors alike.

Some people who know Barr have pointed out that she has dealt with severe mental illness for decades, severe in the sense of including but not limited to split personality. But that is background info. And as many would point out in response, white people are always being given that excuse whenever they do something horrible, even if in this case it is a genuine explanation for her wildly inconsistent ideological views and amazing lack of impulse control.

As far as that goes, the entire United States at present is experiencing a plague of mental illness — with rising rates of depression, anxiety, addiction, suicide, mass violence, etc. This is the result of the highest levels of social, political, and economic inequality seen in world history. This has been proven as a major factor in societal stress and breakdown (see Kate Pickett & Richard Wilkinson’s The Spirit Level, Keith Payne’s The Broken Ladder, and Walter Scheidell’s The Great Leveller). American society itself is going insane, the entire society across the political spectrum and in both parties.

That isn’t something to be dismissed. We’ll be seeing more of this kind of thing. It will get worse and worse, until finally hitting a breaking point. That isn’t an excuse for the misbehavior of white privilege or class privilege. It’s an explanation and, more importantly, a warning. Even the rich, powerful, and famous are going off the deep end. And we are beginning to see the elite turn on each other, one of the last signs before precipitous collapse or else authoritarian takeover. Prepare yourself. It ain’t gonna be pretty.

None of that is precisely the main point I want to make. It’s been known for a long time that Roseanne Barr was mentally unstable. Besides, she has years of repeated outspoken and public bigotry. What is worrisome is that, as ABC management had to have already known this, we are forced to assume that they made an economic bet that the short term profit of exploiting a crazy bigot would win over the possibility of being held to account for long term consequences. They lost that bet and so are now trying to cut their losses. But within the dominant system, it seemed like an economically rational decision because much of Barr’s past bigotry targeted expendable scapegoats, Arabs and Palestinians, who were socially acceptable and politically correct.

Anyway, Barr’s bigotry is small time stuff, in and of itself not being of great concern to a media giant. ABC was willing to promote a bigot like Barr for the same reason the corporate (and corporatist) media gave so much free airtime to Donald Trump as presidential candidate. It was the profitable thing to do at the time and, within a plutocratic system, profit and power go hand in hand which has been exacerbated as big biz media became ever bigger with consolidation (along with the parent companies of media increasingly tied to big energy and the military-industrial complex). It is also why corporate media regularly promotes even greater evils by beating the drum for wars of aggression, pushing neo-imperialist propaganda, and giving cover for war crimes — no matter how many millions of innocent people are harmed and traumatized, dislocated and killed. Follow the money.

Now we are getting to the nub of the problem. Corporations these past years have been quick to use censorship to shut down alternative media and outside voices, both left and right, with claims of protecting Americans from fake news, Russian trolls, or whatever other rationalization they invent (not to say there aren’t real threats to democracy, but the greatest threat within capitalist realism is big biz itself). The victims of this censorship onslaught aren’t only crazy bigots, reactionary trolls, and such for also included have been major media personalities and radical critics such as Jimmy Dore. Those outside of the ruling establishment have lost access to advertising dollars on Youtube, been eliminated from Google search results, had accounts suspended on Facebook and Twitter, etc. This is combined with corporate media shutting down comments sections (and public media has become about as corporate as the rest).

As public opinion further sides with alternative media views, public opinion and alternative media are further silenced. The ruling elite are losing control of the narrative. But as they try to aggressively regain and oppressively enforce control, they will ever more lose control. It is the death spiral of a social order that has gone out of control. More people will feel more silenced, more powerless, more disenfranchised, and more frustrated. And with every person who is silenced and unheard, dismissed and ignored, we move closer to greater public unrest, social disruption, and tumultuous change. In playing this game, the capitalist class might find that they have slit their own throats. We are already so close to boiling point and it won’t take much to finally boil over. And the process will be messy.

Rich, privileged, crazy assholes like Barr and Trump are the tip of the iceberg. We haven’t seen full-on crazy yet. The descent into madness is coming. Buckle up!

As always, I should add that I’m not advocating revolution. My lifelong inclination has been toward pansy liberalism in wondering why can’t we all just get along and in hoping that democratic reform from within the system would work out in the end. But the ruling elite and cynical hacks, mindless partisans and lesser-evil voters refused to go the easy way. They refused to listen to the voices of moderation and reason. Now, along with the rest of us, they will suffer the consequences of the decades-long decline into corruption, failure, and injustice. What the American Empire did to others will be done to us. What the comfortable classes did to the poor, whites to non-whites, Christians to non-Christians will be returned in kind. The consequences can be delayed for a while, but not denied. Corporate media implementing perception and opinion management won’t save the social order from the establishment’s own self-destructively suicidal tendencies.

The crazies will get crazier, as will we all in losing our collective bearings. It is what it is. At this point, it doesn’t matter what any of us wants or hopes for. Societies change not because of ideological schemes and utopian dreams but, first and foremost, because the old order stops functioning. We are going to have to pass through dark times to see what, if anything, is on the other side of the storm.

Marxism Within Capitalism

As explained in an article celebrating Karl Marx’s birthday, “Marx’s vision of socialism had nothing in common with one-party dictatorships like the former Soviet Union that declared themselves to be socialist or communist. For Marx, the key question was not whether the economy was controlled by the state, but which class controlled the state. A society can only be socialist if power is in the hands of workers themselves.”

This is why the Soviet Union and Maoist China were never Marxist or ever attempted to be Marxist, in spite of Marxist rhetoric getting caught up in Cold War debates. Then again, capitalist rhetoric of ‘free markets’ has for generations been used to defend plutocracy, fascism, corporatism, and inverted totalitarianism. If we don’t differentiate rhetoric from reality, then any ‘debate’ is about declaring power rather than discerning truth.

To clarify an alternative perspective that was excluded from Cold War propaganda on both sides, Marx explained that, “No social order is ever destroyed before all the productive forces for which it is sufficient have been developed, and new superior relations of production never replace older ones before the material conditions for their existence have matured within the framework of the old society.”

He had no interest in starting a revolution to replace one system of centralized authoritarian power structure with another. He saw the only way forward was through the system already in place. This is probably why, in writing for the leading Republican newspaper in the United States, he supported a capitalist like Abraham Lincoln. The last of feudalism in the form of slavery had to be eliminated and capitalism fully established before the new system could demonstrate what it was.

Such a system can’t be destroyed from without, until it has already weakened itself from within, based on the assumption this is the life cycle of all socioeconomic orders. Only by pushing the dominant system to its furthest extreme form and its ultimate conclusion could the potentials and flaws be fully seen for what they are. There is no short cut to avoid this difficult transition.

The dominant system either would collapse under its own weight, as happened with the decline of the ancien regime, or it would not. From a Marxist perspective, shifting control of the ‘capital’ in modern economy from plutocrats to oligarchs is the same difference. It’s still capitalism in both cases, although slightly different varieties (difficult to tell them apart sometimes, such as with China’s mix of statist communism and statist capitalism, demonstrating that there is no inherent contradiction between the two).

As Chris Saunders simply stated, “Marx had said that Capitalism was a necessary stage along the road to socialism. Those attempts by the USSR and China to by-pass capitalism, have instead necessitated the resort to state capitalism.” Capitalist rhetoric obscures the real world functioning of capitalism. It never required free markets. If anything, it’s easy to make the argument that capitalism is by definition and intent the opposite of free markets. The concentration of capital within the capitalist class, whether plutocrats or oligarchs, inevitably means the concentration of all else: power, influence, opportunities, resources, education, rights, privileges, and of course freedom itself. It should go without saying that markets can’t be free when people involved in and impacted by markets aren’t free.

Marxism has never exactly been implemented and certainly never failed. That is because Marx never offered an alternative utopian scheme. He assumed that only after the breakdown or during the process of weakening and decline could some other system organically arise and take form. Then the lower classes, hopefully, might begin to assert their own power for self-control and authority for self-governance. As far as a Marxist perspective is concerned, everything so far has been happening as Marx predicted it would.

Full steam ahead! Let’s find out what comes next. And that means understanding what is happening right now within the present society and economy. New developments are already taking root in the cracks of the edifice.

* * *

Should we celebrate Karl Marx on his 200th birthday?
by Barbara Foley

In the wake of World War II, various economists heralded the narrowing of the gap between the richest and the poorest as evidence of the disappearance of class antagonisms.

But the long curve of capitalist development suggests that has widened, as illustrated in economist Thomas Piketty’s book “Capital in the Twenty-First Century.”

The candle of the 2012 Occupy movement may have guttered, but its mantra of the 99 percent opposing the 1 percent is now a truiusm. Everyone knows that the super-rich are richer than ever, while for most of the working-class majority – many of them caught in the uncertainty of the “gig economy” – belt-tightening has become the new normal.

Those laboring in the formal and informal economies of much of Asia, Africa and Latin America, needless to say, face conditions that are far more dire.

Marx was correct, it would seem, when he wrote that capitalism keeps the working class poor.

He was also spot-on about capital’s inherent instability. There is some validity to the joke that “Marxists have predicted correctly 12 of the last three financial crises.”

Marx’s reputation has made a startling comeback, however, at times in unexpected circles.

In discussing the 2008 financial meltdown, one Wall Street Journal commentator wrote: “Karl Marx got it right, at some point capitalism can destroy itself. We thought markets worked. They’re not working.”

In 2017, the National Review reported that a poll found as many as 40 percent of people in the U.S. “now prefer socialism to capitalism.”

Notably, too, the C-word – Communism – has been making a reappearance, as is indicated by recent series of titles: The Idea of Communism,“ ”The Communist Hypothesis,“ ”The Actuality of Communism,“ and ”The Communist Horizon.“ Until recently, the word was largely avoided by neo- and post-Marxist academics.

Class analysis remains alive and well. This is because capitalism is no longer as seemingly natural as the air we breathe. It is a system that came into being and can also go out of being.

Corporate Imperialism

Corporations have always been forms or aspects of governments, agents and manifestations of state power. The earliest corporate charters were given to colonial governments that often were simultaneously for-profit business ventures and were operated accordingly — typically dependent on free stolen land and resources combined with a cheap workforce of impoverished immigrants, convict labor, indentured servants, and slaves. That is the origin of modern capitalism.

By definition, a corporation is a political entity and institution, a creature of government. A corporate charter is a legal and political construction offering legal rights and privileges that are protected and enforced by official authority and, when necessary, violent force. In some cases, from the East India Company ruling India to the American Robber Barons ruling company towns, corporations have operated their own policing and employed their own goons. And as long as political reform or populist revolution doesn’t take them out of power, they eventually become fully functioning governments.

Essentially, a corporation is no different than a central bank, an alphabet soup agency, a political party, etc. In fact, many regulatory agencies are captured by and act on the behalf of corporations, not on behalf of the people or their elected representatives. Even from the beginning, it was never clear whether corporations were entities beholden to governments or a new kind of governing body and political organization. The struggle between colonial corporations and the colonial empires was often about which elite held ultimate power, only later involving local populations attempting to seize power for self-governance. The American Revolution, for example, was as much a revolt against a corporation as it was against an empire.

We are living at a time when the majority (about two third) of the largest economies in the world are transnational corporations. These new corporations are not only seizing the power of governments or otherwise pulling the strings behind the scenes: bribery, blackmail, cronyism, etc. Acting beyond the level of nation-states, they are creating something entirely new — a global network of corporate governance that lacks any and all democratic procedure, transparency, and accountability.

Once colonial imperialism asserted itself, it was inevitable what corporations would become. The early ideology of corporatism had its origins in the Catholic Church, another vast transnational institution. But now corporations serve no other master than raw power, which is to say authoritarianism — national corporatocracy growing into an even more fearsome predator, transnational inverted totalitarianism ruled by psychopaths, dominators, and narcissists.

As our new Lord and Savior Donald Trump demonstrates, a successful plutocrat and kleptocrat can declare bankruptcy numerous times over decades and still maintain his position of immense wealth while using that wealth to buy political influence and position (with decades of ties to foreign oligarchs and crime syndicates involving apparent money laundering, only now being investigated but probably with no real consequences). Before Trump, it was Ronald Reagan who went from radio sportscaster to Hollywood actor to corporate spokesperson to politician to the most powerful man in the world. But if not a cult of media personality like that surrounding Reagan or Trump, we would be instead be ruled by an internet tycoon like Jeff Bezos (with his ties to the CIA and Pentagon) or a tech tycoon like Peter Thiel (with his dreams of utopian technocracy)— the results would be similar, an ever increasing accumulation of wealth and concentration of power.

Even more concerning are the powerful interests and dark money that operate behind the scenes, the Koch brothers and Mercer families of the world, the most successful of them remaining hidden from public disclosure and news reporting. The emergent corporate imperialism isn’t limited to individuals but crony networks of establishment power, political dynasties, and vast inherited wealth; along with lobbyist organizations, think tanks, front groups, big biz media, etc.

The money men (they are mostly men and, of course, white) are the celebrities and idols of the present corporatist world in the way those in past eras admired, worshipped, and bowed down to popes, monarchs, and aristocrats. This 21st century ruling elite, including the puppet masters that keep the show going, is as untouchable as that of the ancien regime and in many ways more powerful if more covert than the East India Company, that is until a new revolutionary era comes. There isn’t much room for hope. In all of these centuries of struggle between various ruling elites, democracy for all its rhetoric remains a dream yet to be made real, a promise yet to be fulfilled.

* * *

The East India Company: The original corporate raiders
by William Dalrymple

It seemed impossible that a single London corporation, however ruthless and aggressive, could have conquered an empire that was so magnificently strong, so confident in its own strength and brilliance and effortless sense of beauty.

Historians propose many reasons: the fracturing of Mughal India into tiny, competing states; the military edge that the industrial revolution had given the European powers. But perhaps most crucial was the support that the East India Company enjoyed from the British parliament. The relationship between them grew steadily more symbiotic throughout the 18th century. Returned nabobs like Clive used their wealth to buy both MPs and parliamentary seats – the famous Rotten Boroughs. In turn, parliament backed the company with state power: the ships and soldiers that were needed when the French and British East India Companies trained their guns on each other. […]

In September, the governor of India’s central bank, Raghuram Rajan, made a speech in Mumbai expressing his anxieties about corporate money eroding the integrity of parliament: “Even as our democracy and our economy have become more vibrant,” he said, “an important issue in the recent election was whether we had substituted the crony socialism of the past with crony capitalism, where the rich and the influential are alleged to have received land, natural resources and spectrum in return for payoffs to venal politicians. By killing transparency and competition, crony capitalism is harmful to free enterprise, and economic growth. And by substituting special interests for the public interest, it is harmful to democratic expression.

His anxieties were remarkably like those expressed in Britain more than 200 years earlier, when the East India Company had become synonymous with ostentatious wealth and political corruption: “What is England now?” fumed the Whig litterateur Horace Walpole, “A sink of Indian wealth.” In 1767 the company bought off parliamentary opposition by donating £400,000 to the Crown in return for its continued right to govern Bengal. But the anger against it finally reached ignition point on 13 February 1788, at the impeachment, for looting and corruption, of Clive’s successor as governor of Bengal, Warren Hastings. It was the nearest the British ever got to putting the EIC on trial, and they did so with one of their greatest orators at the helm – Edmund Burke.

Burke, leading the prosecution, railed against the way the returned company “nabobs” (or “nobs”, both corruptions of the Urdu word “Nawab”) were buying parliamentary influence, not just by bribing MPs to vote for their interests, but by corruptly using their Indian plunder to bribe their way into parliamentary office: “To-day the Commons of Great Britain prosecutes the delinquents of India,” thundered Burke, referring to the returned nabobs. “Tomorrow these delinquents of India may be the Commons of Great Britain.”

Burke thus correctly identified what remains today one of the great anxieties of modern liberal democracies: the ability of a ruthless corporation corruptly to buy a legislature. And just as corporations now recruit retired politicians in order to exploit their establishment contacts and use their influence, so did the East India Company. So it was, for example, that Lord Cornwallis, the man who oversaw the loss of the American colonies to Washington, was recruited by the EIC to oversee its Indian territories. As one observer wrote: “Of all human conditions, perhaps the most brilliant and at the same time the most anomalous, is that of the Governor General of British India. A private English gentleman, and the servant of a joint-stock company, during the brief period of his government he is the deputed sovereign of the greatest empire in the world; the ruler of a hundred million men; while dependant kings and princes bow down to him with a deferential awe and submission. There is nothing in history analogous to this position …”

Hastings survived his impeachment, but parliament did finally remove the EIC from power following the great Indian Uprising of 1857, some 90 years after the granting of the Diwani and 60 years after Hastings’s own trial. On 10 May 1857, the EIC’s own security forces rose up against their employer and on successfully crushing the insurgency, after nine uncertain months, the company distinguished itself for a final time by hanging and murdering tens of thousands of suspected rebels in the bazaar towns that lined the Ganges – probably the most bloody episode in the entire history of British colonialism.

Enough was enough. The same parliament that had done so much to enable the EIC to rise to unprecedented power, finally gobbled up its own baby. The British state, alerted to the dangers posed by corporate greed and incompetence, successfully tamed history’s most voracious corporation. In 1859, it was again within the walls of Allahabad Fort that the governor general, Lord Canning, formally announced that the company’s Indian possessions would be nationalised and pass into the control of the British Crown. Queen Victoria, rather than the directors of the EIC would henceforth be ruler of India. […]

For the corporation – a revolutionary European invention contemporaneous with the beginnings of European colonialism, and which helped give Europe its competitive edge – has continued to thrive long after the collapse of European imperialism. When historians discuss the legacy of British colonialism in India, they usually mention democracy, the rule of law, railways, tea and cricket. Yet the idea of the joint-stock company is arguably one of Britain’s most important exports to India, and the one that has for better or worse changed South Asia as much any other European idea. Its influence certainly outweighs that of communism and Protestant Christianity, and possibly even that of democracy.

Companies and corporations now occupy the time and energy of more Indians than any institution other than the family. This should come as no surprise: as Ira Jackson, the former director of Harvard’s Centre for Business and Government, recently noted, corporations and their leaders have today “displaced politics and politicians as … the new high priests and oligarchs of our system”. Covertly, companies still govern the lives of a significant proportion of the human race.

The 300-year-old question of how to cope with the power and perils of large multinational corporations remains today without a clear answer: it is not clear how a nation state can adequately protect itself and its citizens from corporate excess. As the international subprime bubble and bank collapses of 2007-2009 have so recently demonstrated, just as corporations can shape the destiny of nations, they can also drag down their economies. In all, US and European banks lost more than $1tn on toxic assets from January 2007 to September 2009. What Burke feared the East India Company would do to England in 1772 actually happened to Iceland in 2008-11, when the systemic collapse of all three of the country’s major privately owned commercial banks brought the country to the brink of complete bankruptcy. A powerful corporation can still overwhelm or subvert a state every bit as effectively as the East India Company did in Bengal in 1765.

Corporate influence, with its fatal mix of power, money and unaccountability, is particularly potent and dangerous in frail states where corporations are insufficiently or ineffectually regulated, and where the purchasing power of a large company can outbid or overwhelm an underfunded government. This would seem to have been the case under the Congress government that ruled India until last year. Yet as we have seen in London, media organisations can still bend under the influence of corporations such as HSBC – while Sir Malcolm Rifkind’s boast about opening British embassies for the benefit of Chinese firms shows that the nexus between business and politics is as tight as it has ever been.

The East India Company no longer exists, and it has, thankfully, no exact modern equivalent. Walmart, which is the world’s largest corporation in revenue terms, does not number among its assets a fleet of nuclear submarines; neither Facebook nor Shell possesses regiments of infantry. Yet the East India Company – the first great multinational corporation, and the first to run amok – was the ultimate model for many of today’s joint-stock corporations. The most powerful among them do not need their own armies: they can rely on governments to protect their interests and bail them out. The East India Company remains history’s most terrifying warning about the potential for the abuse of corporate power – and the insidious means by which the interests of shareholders become those of the state. Three hundred and fifteen years after its founding, its story has never been more current.