Reactionaries, Powell Memo and Judicial Activism

To explain why the Powell Memo is important, I’ll begin with a summary of the games played by reactionaries which explains the rhetorical power they wield. There are two main aspects of the reactionary mind (* see below). The most interesting is described by Corey Robin, the reason I’ve come to refer to reactionaries as the “Faceless Men”.

Reactionaries steal the thunder and mimic the tactics of the political left, and in doing so co-opt political movements and even revolutions, turning the latter into counterrevolutions. More interesting still is how reactionaries pose as what they are not by claiming labels that originated with their opponents — calling themselves classical liberals and whatever else catches their fancy. They pretend to be defenders of constitutional originalism while they radically transform the Constitution, such as pushing corporate personhood and citizenship, something that would have horrified the American revolutionaries and founders.

The other side of this is what reactionaries project onto others. They are the greatest purveyors of political correctness in attacking free speech, an area in which they show their brilliance in controlling narrative framing. They manage to portray their enemies as doing what they are most guilty of and through this tactic they silence and discredit others.

In this way, the reactionary element of the intellectual elite, Hollywood elite, and banking elite (as seen in the career of Steve Bannon) somehow manages to convince their followers that they are average Americans in a noble fight against the ruling elite. The target often ends up being students at state colleges who, according to the data and opposite of the reactionary portrayal, are mostly those working their way out of the working class — if meritocracy exists at all in the United States, this is the closest we get to it. But anyway, it’s highly doubtful that colleges are serving a genuinely democratic purpose at a time when corporate and other private funding is flooding into colleges, and so the accusation of their being bastions of the liberal faith is a sad joke. This state of confusion is intentionally created by reactionaries — up is down and those who are down are the enemy to be blamed for everything.

Or consider the accusation of a liberal media bias. It’s odd where I most often here this bizarre claim. It’s regularly repeated in the corporate media itself. Even the supposedly liberal media gives a platform to people to spout this bullshit. So, what kind of liberal bias is it that criticizes liberal bias by giving equal or greater time to right-wingers? That is no exaggeration, in that even NPR gives more airtime to corporatist and right-wing think tanks than to those on the anti-corporatist left. that is unsurprising since NPR gets most of its funding from private sources such as corporations, not from the government. Public radio?

This brings me to an example that has been on my mind for a while. I’ve been meaning to write about it. This seems as good of a time as ever. Let this be my first post of the new year, as clarifying where we stand as a society and how we got here.

The infamous Powell Memo (AKA Powell Manifesto) was only recently leaked, but it was written way back in 1971. Ever since that time, it has been the guiding vision of a cabal of right-wing oligarchs and plutocrats. It set out a strategy in how to take over the government and it was successful. Do you know how those on the political right are always alleging a left-wing conspiracy to pack the courts with activist judges? Well, that is an expression of a guilty conscience. It’s exactly what the right-wing ruling elite has been doing this past half century, culminating in the nomination of Judge Brett  Kavanaugh to the Supreme Court. Predictably, this so-called constitutionalist just so happens to be a big supporter of executive power, an agenda that more fully began being pushed under the administration of George W. Bush. There is absolutely nothing constitutionalist about this, as it undermines the very core pillar of separation and balance of powers. Instead of being a countervailing force, right-wingers are seeking to create a corporatocratic Supreme Court that serves at the behest of a right-wing presidency and political system.

That isn’t to entirely blame them, as the Democratic Party has shifted so far right on these issues that they are now to the right of Republicans from earlier last century. The reactionary mind has a way of infecting nearly everything and everyone. Our entire government has become a reactionary institution, but it’s important that we keep in mind who planned and led this coup. Then again, Lewis Powell who wrote the Powell Memo did so not only as a corporate lobbyist but also as a Democrat. And to show the bipartisan nature of this corporatocracy, it was Richard Nixon as a Republican president who that same year nominated him to the Supreme Court and the next year he was appointed. Still, it was the right-wing ALEC (American Legislative Exchange Council) that was most directly inspired by the Powell Memo, the organization that then helped enact this neoliberal and neo-fascist coup.

It’s not only the respectable good liberals of the ‘mainstream’ left that was in the dark about these machinations. Before the Powell Memo was leaked, anyone who pointed to the corporate takeover would have been called a conspiracy theorist, and so no more welcome in the Democratic Party than in the Republican Party. Americans in general couldn’t see what was happening because the decisions and exchange of money happened mostly behind closed doors. Besides, the corporate media had no interest in reporting on it, quite the opposite of course. There was no transparency, as planned, and so there was no accountability. Democracy dies in the dark.

Only now that Clown-Fuhrer Trumpf is in power do we suddenly get some push back showing up in the mainstream. The struggle for power within the ruling elite goes into high gear. And our dear leader has put Judge Kavanaugh onto the Supreme Court. I’ve heard stalwart Republicans who despise and fear Trump, nonetheless, supporting him to the extent that he is pushing for a ‘conservative’ judiciary which supposedly opposes all those activist judges on the left. Yet Kavanaugh is as activist as they come. The main reason Trump picked him probably was because, when the time comes, the Supreme Court can be swung in defense of the administration.

After the Barack Obama followed the example of George W. Bush in further advancing executive power, now Democrats are thinking that their support for authoritarianism may have been a bad die after all. They assumed they were going to maintain power since it was obvious to them that Hillary Clinton couldn’t lose the presidential election and so that the unrestrained executive could’ve then been used for their more paternalistic variety of friendly fascism. Trump and gang, of course, make a convenient scapegoat for Democratic sins. But that is a useless game at this point.

The joke is on all of them. And the entire political system is the punchline.

* * *

* What is the distinguishing feature of the reactionary mind? Maybe it has to do with the Dark Triad, the strong correlation between narcissism, psychopathy, and Machiavellianism. In particular, the last one might be key. Research has shown that those who are most fearful of Machiavellianism in fantasizing about conspiracies existing behind every door and lurking under the bed are themselves more prone to acting in Machiavellian ways. That very much sounds like the reactionary mind.

In political terms, the reactionary mind gets expressed by the social dominance orientation (SDO), which essentially is another way of speaking of Machiavellianism. This is where authoritarianism comes in, as SDO types are attracted to and have talent in manipulating authoritarian followers. As such, maybe authoritarians will only be reactionary to the degree that a society becomes reactionary and SDO types gain power, since authoritarians will conform to almost any social norm, good or bad.

It’s only under these conditions that we can speak of a distinct reactionary mind. The arising to dominance of the reactionary mind indicates that something is being reacted to. From other research, what seems to elicit this is rising inequality and segregation that foments mistrust, fear, and anxiety. This is what we see before every period of instability and, in reaction, there are those who seek to enforce order.

What makes reactionaries unique is their innovativeness in how they go about this. They aren’t traditionalists, although they also will co-opt from traditionalists as they co-opt from the political left. One of the purest forms of the reactionary mind is nostalgia which, unsurprisingly, rarely has anything to do with the historical past. It is co-opting the rhetoric and emotion of tradition with little respect or concern about actual traditions.

A key example of this anti-traditional pseudo-traditionalism is constitutional originalism. What the reactionary right is pushing is a complete contradiction and betrayal of what the American Revolution was fought for and what the United States was founded upon, specifically founded on the Declaration of Independence and the first constitution of the Articles of Confederation. These reactionaries will claim that liberalism is an attack on American political tradition, even as any informed person knows that liberalism (including in its progressive and radical forms) was core to American society from the beginning. Consider the view that a constitution is a living document as a pact of a specific community of people, an American tradition that came out of Quaker constitutionalism and (by way of Quaker-raised John Dickinson) informed the democratic sensibility of the Articles of Confederation.

Such history is inconvenient and so irrelevant to the reactionary mind. But because reactionaries took control so early with the Constitutional Convention, their counterrevolution permanently obscured the true history and that has left the American population with collective amnesia. As demonstrated by the extremes of Donald Trump, reactionaries love to invent ‘facts’ and then to repeat them until they become accepted or else until all sense of truth is lost. This is what makes the reactionary mind Machiavellian and, as such, finds itself at home in the Dark Triad.

* * *

Powell Memorandum:

CONFIDENTIAL MEMORANDUM
Attack on American Free Enterprise System

DATE: August 23, 1971
TO: Mr. Eugene B. Sydnor, Jr., Chairman, Education Committee, U.S. Chamber of Commerce
FROM: Lewis F. Powell, Jr.

Neglected Opportunity in the Courts

American business and the enterprise system have been affected as much by the courts as by the executive and legislative branches of government. Under our constitutional system, especially with an activist-minded Supreme Court, the judiciary may be the most important instrument for social, economic and political change.

Other organizations and groups, recognizing this, have been far more astute in exploiting judicial action than American business. Perhaps the most active exploiters of the judicial system have been groups ranging in political orientation from “liberal” to the far left.

The American Civil Liberties Union is one example. It initiates or intervenes in scores of cases each year, and it files briefs amicus curiae in the Supreme Court in a number of cases during each term of that court. Labor unions, civil rights groups and now the public interest law firms are extremely active in the judicial arena. Their success, often at business’ expense, has not been inconsequential.

This is a vast area of opportunity for the Chamber, if it is willing to undertake the role of spokesman for American business and if, in turn, business is willing to provide the funds.

As with respect to scholars and speakers, the Chamber would need a highly competent staff of lawyers. In special situations it should be authorized to engage, to appear as counsel amicus in the Supreme Court, lawyers of national standing and reputation. The greatest care should be exercised in selecting the cases in which to participate, or the suits to institute. But the opportunity merits the necessary effort.

* * *

Founding fathers worried about corporate clout
by Angela Carella

A Very American Coup
by David McLaren

The Shift From Democracy To Corporate Dictatorship And The Tragedy Of The Lack Of Push Back. Citizens United v. Federal
by Michael Monk

Powell Memo
by Jeremy Wilburn

How the Right Packed the Court
by William Yeomans

Extremists on the Bench: Five Years After Citizens United, Our Rogue Supreme Court
by Steve Justin

Citizens United, corporate personhood, and the way forward
by Mal Warwick

Is the Supreme Court Determined to Expand Corporate Power?
by Robert Monks and Peter Murray

The Powell Memo And The Birth Of The Washington Lobbying Empire
by Tina-Desiree Berg

Context of ‘August 23, 1971 and After: ’Powell Memo’ Leads to Massive Pro-Business Efforts to Influence Political, Social Discourse’
from History Commons

The Powell Memo
by .ren

* * *

If Confirmed, Brett Kavanaugh Fulfills the Powell Manifesto!
by Frank Puig

9 law experts on what Brett Kavanaugh means for the future of America
by Isolde Raftery and Sydney Brownstone

Kavanaugh would cement Supreme Court support for an oppressed minority — corporations
by Steven Strauss

With Kavanaugh, Trump Could Fashion The Most Business-Friendly Supreme Court Since The New Deal
by Michael Bobelian

How the Supreme Court Unleashed Business
by Justin Fox

Brett Kavanaugh’s Role in Schemes to Politicize the Judiciary Should Disqualify Him
by John Nichols

Brett Kavanaugh and the new judicial activism
by Matthew Yglesias

Judge Kavanaugh’s Activist Vision of Administrative Law
by Robert V. Percival

Brett Kavanaugh’s Dangerous Right-Wing Judicial Activism
by Elliot Mincberg

SCOTUS Nominee Brett Kavanaugh’s Record Depicts Dangerous Conservative Judicial Activism
by Devon Schmidt

Kavanaugh record hints at judicial activism in American election law
by Adav Noti and David Kolker

How Brett Kavanaugh Could Change the Supreme Court—and America
by Brian Bennett

His Entire Career Has Been In Service Of The Republican Agenda”: D.C. Lawyers Dish On Whether Brett Kavanaugh Will Give Trump A Pass On Russia
by Abigail Tracy

Brett Kavanaugh And The Fraud Of Originalism
by Rich Barlow

Brett Kavanaugh’s nomination is a victory for ‘originalists’
by Jill Abramson

Why the Supreme Court is now America’s most dangerous branch
by Mary Kay Linge

Brett Kavanaugh Was Involved in 3 Different Crises of Democracy
by Charles Pierce

The Senate Must Closely Examine These Documents From Kavanaugh’s Bush Years
by Peter M. Shane

How Brett Kavanaugh Worked to Weaponize the War on Terror
by Faiza Patel and Andrew Boyle

Could Brett Kavanaugh Protect Trump From Prosecution?
by Andy Kroll

Brett Kavanaugh and the Imperial Presidency (Supreme Court)
from Best of the Left

Brett Kavanaugh’s Radical View of Executive Power
by Corey Brettschneider

Judge Kavanaugh: An Originalist With a New—and Terrifying—Interpretation of Executive Power
by Patricia J. Williams

Judge Brett Kavanaugh’s radically expansive view of the power of the presidency: Analysis
by Terry Moran

For Brett Kavanaugh, the Separation of Powers Is a One-Way Street
by Dan Froomkin

7 legal experts on how Kavanaugh views executive power — and what it could mean for Mueller
by Jen Kirby

Courting Disaster: The Trouble with Brett Kavanaugh’s Views of Executive Power in the Age of Trump
by Michael Waldman

Where Supreme Court Nominee Brett Kavanaugh Stands On Executive Power
from All Things Considered

Kavanaugh File: Executive Privilege
By Robert Farley

Brett Kavanaugh’s SCOTUS Nomination Is Bad News for Church/State Separation
by Hemant Mehta

Brett Kavanaugh and the Triumph of the Conservative Counterrevolution
by Bill Blum

Brett Kavanaugh Has Power To Strengthen Donald Trump, But Supreme Court Has Boosted Presidents For Decades
by Greg Price

If Brett Kavanaugh Wins, the Supreme Court Loses
by Jay Michaelson

Why Conservatives Could Regret Confirming Brett Kavanaugh
by Eric Levitz

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.

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.

 

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

What if some in the Establishment want Trump to win?

I was entertaining a conspiracy theory that is favored by some partisan Republicans. They see Donald Trump as an outsider taking over their party. They point out that he was a Democrat in the past.

It must be admitted that on a number of major issues Trump is far to the left of Hillary Clinton. He makes strong criticisms of free trade agreements and big money legalized bribery, all combined what many leftists call corporatism. Even more leftist, he strongly supports universal healthcare.

He has flip-flopped on some issues, such as raising the minimum wage. Then again, Clinton flip-flops almost every time she opens her mouth.

Even some of Trump’s right-wing positions aren’t that different from some statements Clinton has made in the past. She has used racist dog whistle politics. And she earlier stated support for building a fence, instead of a wall, along the border with Mexico.

What if some establishment Democrats want Trump to win? He would be more likely than Clinton to accomplish certain leftist policies, specifically universal healthcare. Sometimes it takes someone in the opposite party to push issues in the other direction—take Richard Nixon’s liberal policies (creating the EPA, and he even advocated for far left healthcare reform and a basic income) and Bill Clinton’s conservative policies (slashing welfare, deregulating, etc).

Maybe Trump is being set up to win. In that case, Clinton would be the patsy who will take the blame. Then how will Republicans organize to fight such things as universal healthcare when it is their own Republican president who is promoting it?

The thing is that the establishment doesn’t necessarily care one way or another about such things as healthcare reform. They will always be sure that certain powerful interests benefit. So, any further healthcare reform would be further shaped to favor the corporations with the most power and influence.

The establishment won’t lose if Trump wins, as he was born and raised as part of the plutocracy and has spent his adult life schmoozing with politicians like the Clintons. And they won’t lose if Clinton wins, one of the most corporatist politicians around. Either way, the establishment wins. But maybe, just maybe there are some in the establishment that are hoping for a Trump victory.

* * *

From an establishment perspective, what is the range of allowable debate? Consider the two mainstream candidates that were the furthest to the right and left.

Ted Cruz was the right-wing candidate, giving voice to both the Tea Party and the religious right. The Republican establishment hated him and he was forced to end his campaign.

Bernie Sanders remains the most leftist candidate, excluding third parties. Calling himself a socialist is one thing, but his demands for reform are unacceptable. The Democratic establishment despises him most of all for the very reason he is so popular.

These two candidates represent the boundaries of the establishment. Only candidates within these boundaries can be allowed to win the nomination of both parties. Hillary was always the obvious establishment candidate. But one is left with the suspicion that Trump is the other establishment candidate.

After all, Clinton and Trump have been the darlings of the mainstream media. That is the same mainstream media that has corporatist ties to both parties—to such an extent that, for example, some lobbyists working within the DNC also help to raise money for Republicans. The mainstream media has given a lot of free campaign advertising to both Clinton and Trump, most especially Trump.

It does make one wonder. Maybe either candidate is acceptable to the establishment. Maybe they are just putting on a show for us voters, creating the ultimate spectacle.

The powers that be have already analyzed every possible scenario. They are surely thinking several steps ahead of the game and prepared with multiple contingency plans. Considering that, what are those several steps ahead? What are the plans already in place? Where are the insiders placing their bets?

Common Sense of the Common People

There are all kinds of rationalizations favored by the wealthy and powerful. They claim most Americans are too stupid, ignorant, inexperienced, lazy, or whatever. The basic assumption is that the dirty masses are generally inferior—blame it on genetics, culture, failing communities, and broken families; just don’t blame it on the political and economic system.

The upper classes argue that we live in a meritocracy and that we need a wise paternalistic ruling elite to deal with all of the complicated issues. Average Americans just don’t understand and would mess everything up, if they were given power to make or influence decisions about public policy. In fact, the public gets blamed for all the problems, as they supposedly get the government they deserve, based on the false belief that we have a functioning democracy that represents the public.

Anyone who is paying attention at all knows this paternalistic condescension is built on empty rhetoric, on lies and spin, even if many of the wealthy and powerful have sincerely come to believe their own propaganda. Most wealth in the US inherited, not earned. This isn’t even close to being a meritocracy. We are ruled by cronyism and corruption, both in government and the economy, partly because big gov and big biz have become so intertwined as to be inseparable.

The poor and young don’t have high rates of unemployment and underemployment because they are lazy, as there simply are fewer legal jobs available and the illegal jobs on the black market have the risk of landing you in prison. Even those fortunate to be in an area with high employment often end up working long hours and multiple jobs, as wages have stagnated and buying power fallen.

The poor, in particular, work harder on a regular basis than most rich have ever done in their entire lives. Illegal prostitutes, drug dealers, back alley car mechanics, cash-paid yard workers, undocumented immigrant farm labor, etc work harder than the rich could ever imagine, whether or not these illegal forms of work are officially included as part of the economy.

Research shows that the poor and young have some better basic financial skills than do the wealthy and the older. The poor are less likely to fall into cognitive biases that would cause them to lose money, for the simple reason they can’t afford to be careless with what little they have. And Millennials save a higher percentage of their earnings than do Boomers.

This is even true for complicated issues like the budget. There was a survey I saw a while back that showed the average American was better at balancing the budget than was the average politician. It’s probably not that politicians are intellectually incapable of comprehending financial issues. They simply are bought by special interests, unlike the average American. Balancing the budget isn’t rocket science.

We don’t live in a fair and just society. And we aren’t ruled by wise ruling elites and rational technocrats. It is simply wealth perpetuating wealth, power protecting power. The results of this are far from optimal. But imagine what could be accomplished if we had a fully functioning democracy.

* * *

Millennials Are Better Than Baby Boomers at Saving Money, Survey Shows
By Sean Williams, The Motley Fool

Millennials Are Outpacing Everyone in Retirement Savings
By Alexandra Mondalek, Time

Why the poor do better on these simple tests of financial common sense
By Max Ehrenfreund, Washington Post

Hey Congress, College Students Can Balance the Budget
By Jeffrey Dorfman, Real Clear Markets

Whose Work Counts? Who Gets Counted?

Working Hard, But For What?

To Be Poor, To Be Black, To Be Poor and Black

Structural Racism and Personal Responsibility

Happy News: Lack of Democracy & Excess of Carbon Dioxide

If you were already paying attention and being honest with yourself, none of this should surprise you. Still, it is sad.

Princeton Concludes What Kind of Government America Really Has, and It’s Not a Democracy
By Tom McKay

“As Gilens and Page write, “the preferences of the average American appear to have only a minuscule, near-zero, statistically non-significant impact upon public policy.” In other words, their statistics say your opinion literally does not matter.”

Carbon Dioxide Levels Just Hit Their Highest Point In 800,000 Years
By Kiley Kroh

“And this uncharted territory is something humans will have to navigate for quite some time because once its emitted, carbon dioxide remains in the atmosphere. In fact, Andrew Freedman explains, “a single molecule of carbon dioxide can remain aloft for hundreds of years, which means that the effects of today’s industrial activities will be felt for the next several centuries, if not thousands of years.””

 

Corporatocracy: More Fraud & Corruption… what’s new?

I know the libertarians like to blame everything on the government. But listening to the news it seems clear to me that the government is in the pocket of big business. Of course, it’s more complicated than that. My point is that, if libertarians got their way with less regulation and less taxation of the rich, we would exchange our present soft fascism corporatocracy for an outright fascist state. No thanks!