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.

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‘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.

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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.

 

American Corporatocracy Has a Long History

March 5, 1877 –
Corporate CEO Thomas Scott brokers deal to end Reconstruction and install Rutherford B. Hayes as U.S. President

The 1876 presidential election was arguably the most controversial in US history. Samuel Tilden, a Democrat, won the popular vote and seemingly the electoral vote over Hayes. Twenty electoral votes, however, were in dispute. A special commission was formed. It was controlled by Thomas Scott, CEO of the Pennsylvania Railroad, and composed of Supreme Court justices and members of Congress. Scott delivered the votes to Hayes in the “Compromise of 1877” in exchange for a federal bailout of failing railroad investments. Hayes also agreed to pull federal troops from the South (ending Reconstruction and the launch of Jim Crow). Those troops were shifted to the North to put down the first national labor strikes in 1877 in which over 100 strikers were killed.

March 11, 1888 –
Former U.S. President Rutherford B. Hayes on corporate power

“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. — How is this?” From his diary on this day.

From REAL Democracy History Calendar: March 5 – 11

End of Nation-States

Nation-states have not been the dominant form of power for a long while. The United States gave up the nation-state model early on. The genuine alliance of nation-states formed in the Articles of Confederation was quickly scrapped for a new form of nation-imperialism, as declared in the (second) Constitution.

The Anti-Federalists (i.e., Real Federalists) warned against this pseudo-Federalism. But it’s too late now. It is here to stay and has taken on even more powerful forms with transnational corporatism. The remaining nation-states elsewhere in the world are increasingly subordinated to and controlled or owned by other interests. Wealth is one of the main outward symbols of power and, as inequality grows, global wealth is being concentrated and centralized among an emerging global plutocracy.

This new system isn’t beholden to democratic processes or national citizenries. Barring collapse or revolution, we will continue along this path. Still, authoritarianism isn’t inevitable. It could transform into something else, depending on the changing conditions and forces in the world. If we wish to kill or chain this beast, it will require that we the people on this planet to assert our authority and sovereignty by organizing. Either that or let it play itself out, giving into passive hope and apathetic cynicism.

We are already in a new world. Most people don’t yet realize it, though. Some event will trigger it all to come out into the open, likely mass global conflict involving war, civil war, and revolutions or maybe various existential crises of economics, environment, and refuges. Then raw power will assert itself seeking to re-enforce social control and political order. The average person won’t see it coming, until it is too late, as always. Then we will be presented with a choice in how to respond or react… or to continue to go along to get along and see what results.

The basic outline of emerging power, however, can already be seen.

* * *

How long will nation-states last?
answer by Elijah Kourt, Quora

I believe that supranational structures are bound to be the ruling system of our global society in the (perhaps not so distant) future. They will include not only the political but also all the other forces that govern the relations among peoples and societies, in which we will regard former nation-states with the same enthusiasm and fervor as we regard today the autonomous areas, provinces and regions of our countries.

The relevance of states is shifting from being an important individual actor to becoming an important part of a greater system. One can see that each day this is more and more the case in nearly all areas of international relations, and actors such as Google, Facebook, Coca Cola, Hollywood and FIFA have greater importance in shaping the international relations than many nation-states. The traditional role of the nation-states is therefore disappearing, together with their power and relevance in international matters. I saw this very clearly when I found out that in 2002 of the world’s 100 largest economies, 51 were corporations and 49 were countries. In 2014, the proportion might have changed to 63 – 37, which results very surprising and unexpected even to me:

Sacrifice of Liberal Pawns

In the establishment worldview, MSNBC is the most left-wing news source among the corporate media giants. What this means is that MSNBC serves the role as gatekeeper. This far left and no further. Compared to how far left the American majority is, MSNBC isn’t very left at all. The Silenced Majority holds positions that are portrayed as radical in corporate media, from progressive taxation to universal healthcare.

One of the most left-leaning commentators on MSNBC was Joan Walsh. But in reality, she was a mainstream liberal and a defender of the status quo of the Democratic political machine. She was one of the liberal class attack dogs who put the ‘Bernie Bros’ (i.e., progressive reformers) in their place, including the large numbers of ‘Bernie Bros’ who happened to be some combination of non-white and female.

One might note that right now Bernie Sanders support is stronger among non-whites and females than among whites and males. It wasn’t accidental that Sanders spoke for policies that were straight down the center of public opinion. He was the voice of the average American. And that put the likes of Walsh in an uncomfortable position in being to the right of the American public.

Walsh went so far as to help promote the ‘alt-left’ framing that dismissed anyone to the left of the center-right Clinton Democrats. She was one of the main voices that turned it into yet another mainstream talking point — for example tweeting that, “At what point do some of these guys become the alt-left, a less toxic but still racially blinkered version of the alt-right?” Or when she tweetedtweeted: “Never use the term BernieBros anymore. Now there are alt-left bros who think mocking Clinton supporters is doing political work.” (These Clinton Democrats are the same people who dismissed Barack Obama’s supporters as ‘Obama Boys’ and for a similar reason, as Obama made progressive promises to the left of Hillary Clinton.) In her disconnection from reality, Walsh was oblivious to the sad reality of shooting herself in the foot. There is no honor nor reward in doing the bidding of corrupt power.

As mild and  moderately tame as she was, Joan Walsh was still too far left for the corporatist elite who own the corporate media, who control debate and frame the issues. As the Democratic Party pushes even further right, even the most establishment of liberals are seen as a threat and must be eliminated. So MSNBC fired Joan Walsh as a contributor, while giving Trump apologist Hugh Hewitt his own show. When the political left has their greatest opportunity in opposing the most despised president in American history, the plutocracy makes sure to hobble the leftist movement and shut out even the weakest of liberal voices.

MSNBC is what gets labeled as ‘liberal’ media by those who wield power and influence, specifically among the consolidated ownership class of corporate media and their lackeys in determining which voices get heard and silenced. As the American public keeps going left, the American elite keep pushing right. Joan Walsh thought she was safe by being a lapdog of power. She attacked those left of her, only to find herself the new target. What ‘liberals’ like her don’t get is that the very reason a strong left is necessary is to keep liberals like her honest and to hold the line of battle. Without a strong left to strike fear in the ruling elite, liberals become useless even as pawns of power and gatekeepers of media.

Joan Walsh didn’t understand the game she was playing and so she was played for a fool by those who did understand. She became the victim of her own moral failure. It is political karma. If you don’t defend others against attacks from the right-wing and, worse still, join in those attacks, then who will remain to defend you from those same attackers? Sadly too late, the targeted liberal commentariat finds themselves as part of the ‘alt-left’ they once despised. Alt-left is now everything on the left, anyone who speaks out against the dominant right-wing power structure.

* * *

‘Bernie Bros’ and ‘Alt-Left’ Are Propaganda Terms Meant to Disempower
by Michael J. Sainato (on Reddit)

The Democratic Party derailed Bernie: How the establishment has worked to discredit Sanders’ movement
by Conor Lynch

On Being a Good Ally: The Handmaid’s Tale And the Specter of Fascism
by Adam Theron-Lee Rensch

Leaving Amazon

“Even though it is indeed not true that success also justifies the evil deed and the reprehensible means, it is similarly out of the question to regard success as something that is ethically wholly neutral. It so happens that historical success creates the ground on which alone life can go on. The question remains as to whether it is ethically more responsible to go to war like Don Quixote against a new age or, conceding one’s defeat and freely consenting to it, finally to serve the new age. Success, after all, makes history, and the One who guides history always creates good from the bad over the head of the men who make history. It is a short circuit when the stickler for principle, thinking ahistorically and hence irresponsibly, simply ignores the ethical significance of success. It is good that for once we are forced to engage seriously the ethical problem of success. As long as the good is successful, we can afford the luxury of thinking of success as ethically irrelevant. But the problem arises once evil means bring about success.” 
~ Dietrich Bonhoeffer, On Success

The other day, I had a negative experience with Amazon customer service. I had no prior problems with the company and so I hadn’t earlier given it much thought. But this recent experience left a bad taste in my mouth. I wasn’t dealt with honestly. It took me by surprise, as I didn’t expect such treatment. I’m used to customer service, in any business, treating me the customer as if I mattered. This has led me to question my use of Amazon and to think more carefully about what kind of company it is.

It’s not that I’ve been clueless and unaware of certain aspects of Amazon that are less than optimal, such as their refusal to pay local taxes and their practice of underselling brick-and-mortar bookstores for years at a profit loss. I’ve never liked these the anti-competitive tactics. It’s been sad what large businesses in general have done to small businesses, local economies, and once thriving downtowns. But Amazon has gone beyond the standard problems of big biz.

As I looked around, it became clear that many people have had difficulties with Amazon. With or without warning and explanation, Amazon takes actions that can be frustrating or even harmful. They regularly suspend accounts of third party sellers and, in many cases, this forces those sellers out of business because of how much Amazon’s platform dominates the online market. Customers can even get lifetime bans on making purchases or making comments. For some people, they’ve eliminated all Kindle ebooks from their accounts. There is little an individual can do. Getting a repeal or even just a fair response from a private bureaucracy can be challenging, assuming you can get a response at all. You can hire an arbitration company or something, although in many cases that isn’t successful either.

I’ve come to realize that Amazon isn’t a company I can depend upon and trust. Worse still, Jeff Bezos sounds like a psychopath. This wouldn’t be surprising, as studies have shown that psychopaths are common among corporate executives (one study showing that more than one in five, about the same percentage as found in the prison population); and others have noted that, if we take seriously corporate personhood, corporations fit the description of a psychopath. The way Amazon is run is more than a bit sociopathic with heavy leaning toward authoritarian-style Social Darwinism. Employees are treated like crap with one of the highest employee turnover rates.

Bezos is well known for publicly screaming at and demeaning people. He even has a highly disturbing evil laugh. He once bizarrely demanded that employees act with empathy or else they’d be fired, it not occurring him that such a demand was the complete opposite of empathy (his emotions mattering while the employees emotions not so much) Employees are encouraged to report on each other and that means they have to be constantly on the defense to protect themselves from anonymous complaints, sometimes without being told exactly what is the complaint. It’s a fairly common practice to receive an email from management or from Bezos himself with just a single word in it or just a question mark, apparently with the expectation that employees can read minds.

Working there would leave a normal person in a constant state of anxiety and paranoia, which is to say that to succeed in such an environment would require you to be extremely abnormal in the psychological sense. But that is the point. Bezos doesn’t want normal people working for him and because of how he dominates the online market he can demand almost anything he wants, burning through employees as if they are of little value. It’s a situation of severe inequality of power where employees have no leverage and have no union to turn to.

There is a large community of ex-employees that share horror stories. One guy a while back attempted suicide by jumping off one of Amazon’s buildings, after sending Bezos a scathing email. In the warehouses, employees are constantly monitored by a camera about every ten feet and are expected to work at high speed for long hours and for little pay and benefits. During a heat wave, employees were forced to continue working without air conditioning until they dropped from heat exhaustion and were carted away by a waiting ambulance. One employee talked about his hearing being damaged from the loud machinery, even with wearing ear protection, but the company doctor denied that it was work-related so that their insurance wouldn’t have to pay for it.

On top of all that, Jeff Bezos has become the poster boy of Friendly Fascism by hiding his company’s dark side. He is a wealthy and powerful man with proven ability to influence political outcomes. Using the pseudo-libertarian rhetoric of corporatism, Bezos likes to push the standard plutocratic worldview of school privatization, anti-labor organizing, tax cuts for the rich, tax avoidance/exemptions for big biz, etc. He has expanded his business through entering numerous new markets, by buying the Washington Post and Whole Foods, and by getting a highly lucrative contract with the CIA. Unsurprisingly, his acquired newspaper has used anonymous CIA sources and he kicked Wikileaks off Amazon’s servers.

Amazon was troubling enough in the past. But it feels like the company has moved into a new stage of dominance. That is why many people are once again talking about anti-trust laws, specifically in relation to Amazon. Trump has been threatening Bezos which makes for an interesting dynamic, two plutocrats challenging each other’s power. I guess we can count our blessings that at least the rich and powerful are somewhat divided at the moment. That often happens before major societal changes, if not reform then possibly revolution. Nick Hanauer, an early investor in Amazon, has since come to warn of the pitchforks coming for the plutocrats. One might note that the corruption and oppressiveness of big biz corporatism was a major reason for the American Revolution which, after the country’s founding, caused the founders to narrowly define corporations as being required by law to serve the public good.

I’ve done a lot of business with Amazon over the years. Maybe I shouldn’t have. I regret having recently bought a new Kindle. I didn’t realize how bad it was getting, but now my conscience is bothering me. I feel compelled to begin the process of separating from Amazon. I’ll look around for new companies to do business with. It won’t be easy. The first step is that I won’t buy any further content from Amazon. I presently cancelled my Amazon Prime membership and Audible membership. Maybe this means I’ll have to go back to reading physical books and become reacquainted with the local bookstores.

In the long term, this will be a good thing. I don’t want to personally participate in the further decline of America, as we head into a dystopian future. I’ve been told that I should vote with my dollars, which always seemed like an idiotic thing to say when plutocrats control so much of the world. It’s about impossible to avoid big biz these days. Still, I don’t like the feeling of being complicit in these problems. I suppose my small actions might mean little, but we each have to start somewhere. Thomas Paine, for example, took his first step toward revolution simply by writing a petition that by itself meant nothing for it had no hope of influencing the British Empire. Yet after losing his job over that incident, it eventually led Paine to meet Benjamin Franklin who invited him to the colonies.

So, let me take my first step toward wherever it will lead. I can hope that others will head in the same direction.

* * *

Update (11/26/17) – I decided to send a final email to Amazon. I haven’t shopped there since my banning them. And I don’t plan to ever shop there again.

The only way this decision would change is with some kind of drastic change at Amazon — if not trust busting, then maybe something along the lines of new ownership and management that ended the sociopathic company policy of worker exploitation, price gouging, and tax evasion. Another thing that could help change my mind would be an international movement of labor organizing and government regulation that forced Amazon to act according to moral standards and social norms that are beneficial, rather than harmful, to the public good of democracy and to fair competition of free markets.

Here is the final email:

To Communities Team,

As it is the holiday shopping season, I’m here to inform you that I’m no longer doing business with Amazon. The lies and mistreatment I received have caused me to place a lifetime ban on Amazon.

On average, I spent thousands of dollars a year in the past. So over my lifetime, Amazon will lose hundreds of thousands of dollars of profits because of failed customer service. I will instead spend the rest of my life discouraging anyone else from shopping at Amazon. Because of social media, I could have an influence on hundreds of people over my lifetime. Multiply that by all the other lost business from similar failed customer service to other customers. That costs Amazon millions of dollars of lost revenue every year, possibly far more. As employees of Amazon, how forgiving do you think Jeff Bezos would be toward this harm to his business?

I realize some employees let their power go their heads. They think they are untouchable because they have a larger, wealthy, and influential corporation behind them. But I wouldn’t be so confident. If Wikileaks ever leaks Amazon info, including maybe names and addresses of employees, will Amazon protect those employees? Of course not. And imagine what kind of juicy info would be released from internal emails. Just think about the scandals that would follow and who would get scapegoated in the aftermath.

The harm that you cause to others sometimes has a way of coming back to you. Or else coming back to those you represent, which in this case is Amazon. I know Jeff Bezos fears anti-trust actions. Your customers are also citizens, sometimes also people with varying degrees of wealth, power, and influence. Anger the wrong person with the right connections and there would be consequences — it’s bound to happen eventually. If you continue to let power go to your head, it won’t end well.

I wanted to put this on the official record. I don’t expect nor want a response back. Knowing the anti-democratic and anti-competitive activities of Amazon, I now consider the company and its employees to be an enemy of the state and a threat to my freedom. I will spend the rest of my life ensuring that, at the very least, anti-trust actions will be taken against such oligopolies. I will be a single issue voter from now on and this is my single issue, to end plutocratic corporatism.

Do not respond back. You are blocked.

Sincerely,
Benjamin D. Steele

* * *

Free Yourself From An Exploitative Culture
by Margaret Flowers & Kevin Zeese, Popular Resistance

Amazon and the run-away wealth divide

While we’re talking about truth, let’s look at ways our exploitation-based culture is hurting all of us. One example is the concentration of wealth in the United States, which is accelerating at an alarming pace. In 2010, 400 people owned wealth equivalent to the bottom 50%, over 150 million people. We thought that was outrageous, but by 2015, the number was down to 20 individuals.

A new report by Chuck Collins and Josh Hoxie of the Institute for Policy Studies finds that now just three people in the United States, Jeff Bezos of Amazon, Bill Gates and Warren Buffett, own wealth equal to the bottom 50%. That percentage may have changed yesterday because online sales raised Amazon’s stock values so much that Bezos is now a hundred billionaire ($100,000,000,000).

Amazon has become a giant predator in the US economy with a strong grip on Washington politics. Bezos bought the Washington Post, and then signed a $600 million contract with the CIA to build a ‘private cloud’ for the spy agency, raising concerns about conflicts of interest over the Post’s reporting on the CIA and federal government. This month, because of Bezos’ heavy lobbying efforts, Congress took steps that could lead to a $53 billion contract for Amazon to provide goods to the Pentagon.

Amazon is so powerful that cities across the US and Canada are tripping over themselves to lure Amazon with huge tax breaks and land give-aways. James Wilt explains how this is a “textbook ‘race to the bottom’ situation, in which governments are expected to commit massive public funds to subsidize a for-profit corporation so it doesn’t lose the ‘opportunity’ to another jurisdiction.”

Simon Head describes Amazon’s business model as one that puts increasing pressure on workers for greater output and fires them if they fail to perform. Workers have gone on strike to protest “unpaid wages and overtime, dangerous conditions, a lack of breaks and water during hot summer months, and retaliation by management against their organizing efforts.” Amazon also exploits workers who deliver its products. Instead of using the US Post Office for the ‘last mile’ of delivery, Amazon now employs “a network of supposedly self-employed, utterly expendable couriers enrolled in an app-based program which some believe may violate labor laws.”

In this disposable worker economy, it is no surprise that poverty is growing. Collins and Hoxie’s wealth inequality report described the ‘underwater nation’: one in five households either have zero or negative wealth (they are in debt). Hoxie also published the report, “The Road to Zero Wealth” this September, which delves deeper into the significant racial wealth divide. If nothing is done to change the current trends, black households are on track to reach zero wealth by 2043. (Listen to our interview with Collins and Hoxie on Clearing the FOG Radio)

This trend is happening world wide. Another report found that globally, billionaires increased their wealth by almost 20% last year. This level of wealth disparity has not existed since the Gilded Age. John Atcheson writes that this is a natural result of capitalism with its drive for ever greater profits.