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A Nation Brought to the Verge of Ruin


Recently on his syndicated talk show, the power-worshipping interviewer of influential elites Charlie Rose worried that Washington’s latest fiscal crisis sends the world the message that “democracy doesn’t work as well as we thought it did.” [1] 

What American “democracy” was Charlie Rose talking about? As John Bellamy Foster and Robert W. McChesney noted four years ago, explaining why there would be no New Deal under Barack Obama, “The United States, despite its formally democratic character, is firmly in the hands of a moneyed oligarchy, probably the most powerful ruling class in history.” [2] 

By Noam Chomsky’s account two years later, writing in the wake of the first elite-manufactured debt-ceiling crisis that nauseated the nation and mystified the world, “Corporate power, by now largely financial capital has reached the point that both political organizations, which now barely resemble traditional parties, are far to the right of the population on the major issues under debate.”[3] 

Evidence in support of these statements is voluminous. On issue after issue, public opinion is irrelevant (or very close to it) in the realm of serious politics and policy, controlled by the nation’s “unelected dictatorship of money (Edward Herman and David Peterson’s phrase). Take health care coverage. Most Americans have long favored a single-payer national health insurance plan on the Canadian model. Their preference for such substantive, seriously social-democratic health reform has found no representation among the corporate- and Wall Street-captive lobbyists and politicians who pushed for big business-friendly versions of “health insurance reform. The version that finally passed in 2009, the so-called Affordable Health Care Act, is a monument to corporate and financial plutocracy. The business right wing FOX News and talk radio propaganda machine calls “Obamacare” socialism. It did not inform those it eggs into dread that the president’s measure is based on corporate-friendly prescriptions developed by the right wing Heritage Foundation in the 1990s and that his notion of “change” leaves giant insurance and drug companies free to extract massive profits that drive the nation’s health care costs to the breaking point. 

The U.S. could eliminate its much-bemoaned fiscal deficit by replacing the nation’s highly dysfunctional privatized and largely employment-based health insurance system with a universal public model similar to what exists in other industrial nations – with a system that would cut health costs in half and yet deliver superior outcomes. But that’s irrelevant under the rules imposed by the reigning “plutonomy,” wherein “the financial institutions and Big Pharma are far too powerful for such options even to be considered.”[4] 

“The deficit” is itself another case in point. The populace tells pollsters that government’s main priority ought to be job creation, not deficit reduction. As Demos magazine noted last December, 2011 and 2012 polls found that “the public remained focused on jobs and the economy over the deficit by two-to-one margins or more.” Surveys undertaken after Obama’s reelection last November found that “49 percent thought the election was a mandate for job creation while only 22 percent said that the President’s mandate was for deficit reduction.” NBC’s exit poll showed that “only 15 percent of voters thought the deficit was the biggest problem facing the country” A majority supported “spending money to invest in infrastructure/public sector hiring, like teachers and firemen, versus cutting to reduce the deficit.” 

So what? Who cares? As Demos writer J. Mijin Cha explained, “The ‘donor class’ – the segment of the population that donates to political campaigns – is disproportionately comprised of affluent Americans.” This “donor class” (predominantly from households in the top income quintile) “does not prioritize policies to create jobs and economic growth.” It is “twice as likely to name the budget deficit as the most important issue in deciding how they would vote than middle- or lower-income respondents.” It strikingly and overwhelmingly rejects federal government action to help create jobs. Just 19% of the nation’s affluent households think the government in Washington should “see to it that everyone who wants to work can find a job” – a statement favored by 68 percent in the public. A tiny 8 percent of the wealthy think that government “should provide jobs for everyone able and willing to work cannot find a job in private employment” – something a majority (53%) of Americans support. 

The “donor class” has won the policy argument, in defiance of majority sentiments. “Austerity dominates the current political debate” in ways that reflect “the influence of money in our political system…as evidenced in how well the interests and priorities of the affluent class are represented in Congressional action – even when they run counter to the wishes of most Americans” – and, we might add, counter to the requirements of meaningful economic recovery.[5] border:none windowtext 1.0pt;mso-border-alt:none windowtext 0in;padding:0in;
font-weight:normal;mso-bidi-font-weight:bold”>Demos
font-family:"Verdana","sans-serif";border:none windowtext 1.0pt;mso-border-alt:
none windowtext 0in;padding:0in;font-weight:normal;mso-bidi-font-weight:bold”>The current crisis in Washington is yet another in a series of plutocratic fiscal dramas illustrating the irrelevance of public opinion under the “unelected dictatorship.” Like the debt-ceiling fiasco of 2011 and the fiscal cliff freak show of 2012, it will end with a bipartisan deal the advances the financial elite’s drive for more austerity and do nothing to addresses the nation’s interrelated and ongoing crises of poverty, joblessness, and inequality (the latter problem so savagely advanced now that 400 Americans have more wealth than half of all Americans) With the Teapublicans’ “defund [supposedly socialist and in fact corporatist] Obamacare” having been taken off the table (it was never serious
border:none windowtext 1.0pt;mso-border-alt:none windowtext 0in;padding:0in;
font-weight:normal;mso-bidi-font-weight:bold”>), the
10.0pt;line-height:150%;font-family:"Verdana","sans-serif";border:none windowtext 1.0pt;
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bold”>So what if this deal has nothing to do with – and in fact coldly defies – majority popular sentiments? We the not-so sovereign shock-doctrined
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font-weight:normal;mso-bidi-font-weight:bold”> people are supposed to be so relieved that the bipartisan plutocrats in Washington have decided “at the last minute” not to throw the already weak recovery and savagely unequal economy into catastrophic decline (something that no Washington players beyond a part of the GOP.’s proto-fascistic Tea Party faction might seriously seek or welcome) that we are ready to accept whatever regressive bargain is worked out supposedly on our behalf. We are expected to direct our ire at one or both of the two dominant political organizations, and/or at government and politics and “Washington” in general, but not at the real power behind the outwardly reigning parties and state – the nation’s hidden senate of corporate and financial wealth, which has trumped democracy with plutocracy for quite some time now.
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bold”>It’s not exactly new. Listen to
“We meet in the midst of a nation brought to the verge of moral, political, and material ruin. Corruption dominates the ballot-box, the Legislatures, the Congress, and touches even the ermine of the bench. The people are demoralized…The newspapers are largely subsidized or muzzled, public opinion silenced, business prostrated, homes covered with mortgages, labor impoverished, and the land concentrating in the hands of capitalists….The urban workmen are denied the right to organize for self-protection, imported pauperized labor beats down their wages, a hireling standing army, unrecognized by our laws, is established to shoot them down….The fruits of the toil of millions are badly stolen to build up colossal fortunes for a few, unprecedented in the history of mankind; and the possessors of these, in turn, despise the Republic and endanger liberty…We have witnessed for more than a quarter of a century the struggles of the two great political parties for power and plunder, while grievous wrongs have been inflicted upon the suffering people. We charge that the controlling influences dominating both these parties have permitted the existing dreadful conditions to develop without serious effort to prevent or restrain them…. …They propose to sacrifice our homes, lives, and children on the altar of mammon; to destroy the multitude in order to secure corruption funds from the millionaires….” [11]

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bold”>“Wall Street owns the country.” Encouraged by the original well-orchestrated first debt-ceiling dance in the summer of 2011, that was the lesson drawn and disseminated with no small initially favorable public response by OWS and its many hundreds of imitators across the country two years ago. That left-led populist movement (or moment) was crushed by predominantly Democratic mayors and city councils with no small help from a coordinated federal (Obama administration) campaign of repression. It is long past time for a popular grassroots re-occupation seeking among other things to bring about a semblance of actual popular sovereignty to an ever more authoritarian and Orwellian, state-capitalist America.
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bold”>P.S.: As I write this, the “last minute” deal in the “well-orchestrated dance” is being cut.

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bold”>Paul Street’s next book is They Rule: The 1% v. Democracy (Paradigm. January 2014).

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bold”>Selected Endnotes
 2. J.B. Foster and R.W. McChesney, “A New Deal Under Obama?” Monthly Review,February 2009, 7).

 Alakhbar English, August 24, 2011. 

4. N. Chomsky, “Americain Decline,” New York Times Syndicate, August 5, 2011). 

5. J. Miljin Cha, “Why is Washington Reducing the Deficit Instead of Creating Jobs?” Demos, December 7, 2012.

6. Jack Rasmus, “The Coming Debt Ceiling Settlement: The Well-Orchestrated Dance, 2.0,” ZNet (October 15, 2013), http://www.zcomm.org/the-coming-debt-ceiling-settlement-the-well-orchestrated-dance-2-0-by-jack-rasmus.html/ As Rasmus ads, “The recent Teaparty grandstanding on Obamacare has been for the media and public, with the goal of enhancing their 2014 midterm election results within the Republican party as well as in general. They have now accomplished this. The Obamacare issue was never a serious possibility. They will now retreat.”

7. One should not forget that Obama has been, and continues to be, a strong advocate of cutting the corporate tax rate from 35% to 28% and providing ‘relief’ for multinational corporations’ tax rates. Obama has also already indicated cuts of $630 billion in social security and medicare in his 2014 budget. This is the starting point for the ‘original process’ negotiations that have been temporarily derailed by Teapublican grandstanding, now coming to an end.

8. N. Popper, “Little Fear OmWall St. Of Default, At Moment,” New York Times, October 8, 2013, B5. 

9. Noami Klein, The Shock Doctine: The Rise of Disaster Capitalism (New York: Metropolitan, 2007). 

10. Howard Zinn, A People’s History of United States (New York, 1980), 288.

11. Larry Goodwyn, The Populist Movement (New York: Oxford University Press, 1978), 167-168. Emphasis added.

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