Posts Tagged ‘Predator State’
It is one of the neoliberal commandments that innovation in markets can always rectify any perceived problems thrown up by markets in the first place. Thus, whenever opponents on the nominal left have sought to ameliorate some perceived political problem through direct regulation or taxation, the Russian doll of the [neoliberal] thought collective quickly roused itself, mobilized to invent and promote some new market device to supposedly achieve the ‘same’ result. But what has often been overlooked is that, once the stipulated market solution becomes established as a live policy option, the very same Russian doll then also rapidly produces a harsh critique of that specific market device, usually along the lines that it insufficiently respects full market efficiency. This seemingly irrational trashing of neoliberal policy device that had earlier been emitted from the bowls of the [neoliberal thought collective] is not evidence of an unfortunate propensity for self-subversion or unfocused rage against government, but instead an amazingly effective tactic for shifting the universe of political possibility further to the right.
Philip Mirowski, Never Let a Serious Crisis Go to Waste
Erika Eichelberger has a great and depressing story on how some Democrats (and more Republicans), are trying to weaken the major financial regulation legislation Dodd-Frank, passed in response to the financial crisis, before it takes full effect. This massive legislation requires a great deal of administrative rule making to implement it
A group of 21 House lawmakers—including eight Democrats—is pushing seven separate bills that would dramatically scale back financial reform. The proposed laws, which are scheduled to come before the House financial-services committee for consideration in mid-April, come straight on the heels of a major Senate investigation that revealed that JP Morgan Chase had lost $6 billion dollars by cooking its books and defying regulators—who themselves fell asleep on the job. Why the move to gut Wall Street reform so soon? Financial-reform advocates say Democrats might be supporting deregulation because of a well-intentioned misunderstanding of the laws, which lobbyists promise are consumer-friendly. But, reformers add, it could also have something to do with Wall Street money.
“The default position of many members of Congress is to do what Wall Street wants. They are a main source of funding,” says Bartlett Naylor, a financial-policy expert at the consumer advocacy group Public Citizen. “These are relatively complicated [bills]. It’s easy to come to the misunderstanding that they are benign.”
If “economics” is isolated from other aspects of social life, then the criterion for policymakers becomes the simple one of efficiency. Expenditure, and government policy generally, is to be viewed in terms of whether or not a program pays, whether it creates incentives for the private sector to expand output and employment. In a market economy [sic], government must depend on tax collection, and this in turn depends on the level of economic activity–which depends on the expectation of profit. In the economist’s view, if tax incentives can attract or retain business, they should be granted. The income redistribution effects [sic] of such policies may be regressive but this is simply an unavoidable consequence of a market economy: government can step in after production decisions are made and through tax expenditure policies rectify any damage that may have resulted. How much and what type of action it will take will be decided in the political arena.
Yet government, especially at the local level, in under constant pressure not to redistribute from the rich to the poor.
–William K. Tabb, The Long Default : New York City and the Urban Fiscal Crisis.
Ari Melber owes Marshall Ganz an apology.
Last week the Huffington Post broke a story about changes at Change.org based on leaked internal documents, because the company apparently was not going to make these changes public. As Melber notes, the changes include “ accept[ing] ‘corporate advertising, Republican Party solicitations, astroturf campaigns’ and conservative political sponsorships.” He suggests this is framed by critics as a betrayal of the sites founding mission (it’s quite clear it’s a pretty radical shift). In the abstract, I can see the point (although I disagree) of suggesting that providing access without respect to political orientation has value, although even if I concede that the secrecy cannot be defended. Yet even so, that change is only one part. But Melber’s not offering a ‘here’s what the two sides said’ story here.
If you apply a traditional coalition paradigm, the story is that Change.org began by teaming up with a loose coalition of liberal groups, found success, and then left them behind as it grew into a something that looks more like a self-sustaining global technology company than a progressive meetup. That is the story of betrayal and “selling out.
But you can also apply an open-source paradigm, where the value of the system is defined by who it empowers and how it works, rather than any pre-set ideological objectives. Think of Wikipedia, or the bottom-up organizing models of Saul Alinsky and Marshall Ganz. Under this view, Change.org is simply expanding its civic services, and the more open, the better. While the open source view has loyal adherents, it is not a conventional ideology. It is a belief in a system.
Navigating a battle between partisan, progressive organizing and decentralized petition drives is, at bottom, like trying to choose between the Democratic Party and democracy.
Did you catch that? What on earth does any of that have to do with “corporate advertising, Republican Party solicitations, astroturf campaigns”? Isn’t that the complete opposite of the “open-source paradigm” or of “small d democracy” or “bottom-up organizing”? And how does progressive values equate with Democratic Party?
The original HuffPo story argued that this move was in response to the controversy over Michele Rhee and Students First, although Melber doesn’t mention it.
Change.org leadership met in San Francisco this summer to hash out its new advertising policy following a public uproar in July over the site’s partnership with Michelle Rhee, whose organization works in opposition to labor unions. “[W]e looked long and hard at our client policy in the context of our vision. This was the most difficult part of the weekend, but after many hours of discussion and edge cases we ultimately agreed that the current closed approach is simply not feasible,” Change.org’s founder and CEO Ben Rattray wrote in an email to staff, which was also leaked to HuffPost by [Campaign for America's Future's Jeff] Bryant.
Labor and progressive organizations, which make up a sizable base of Change.org’s client list, threatened to pull out over the Rhee situation. After reports that Change.org was dropping Rhee and another controversial anti-union group as clients, the site continues to run her petitions.
What better illustration of the problem. Rhee’s astroturf group uses progressive rhetoric to attack public schools and teachers’ unions, with massive corporate backing. Change.org made promises to it users about its relationship with the group, which it failed to make good on, presumably because the relationship was lucrative and was valued above progressive principles.
All this makes a mockery of the sort of organizing the Ganz has championed – and of small-d democracy.
h/t Mike Conrad.
When you come down to it, the word market is a negation. It is a word to be applied to the context of any transaction so long as that transaction is not directly dictated by the state. The word has no content of its own because it is defined simple, and for reasons of politics, by what it is not. The market is nonstate, and thus it can do everything the state can do with none of the procedures or rules or limitations. It is a cosmic and ethereal space, a disembodied decision maker–a Maxwell’s Demon–that, somehow and without effort, balances and reflects the preferences of everyone participating in economic decisions. It is a magic dance hall where Supply meets Demand, flirts and courts; a magic bedroom where the fraternal twins Quantity and Price are conceived. It can be these things precisely because it is nothing.
Because the word lacks any observable, regular, consistent meaning, marvelous powers can be assigned to it.
James K. Galbraith, The Predator State
I used to think the difference between a bribe and a campaign contribution was that the beneficiaries of the latter make the rules. If police or judges or administrators made the rules, presumably paying them off would be legal. But it just occurred to me that’s only part of it.
If you pay a congress member money in exchange for a single favor, that is a bribe. But if you pay them for access and favorable treatment in general, it’s not a bribe. That is, bribes get too little in return.
At least that’s what Justice Kennedy said.