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Globalization Is Killing the Globe: Return to Local Economies
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Globalization Is Killing the Globe: Return to Local Economies
Published on Monday, February 8, 2010 by CommonDreams.org | Link
by Thom Hartmann
Globalization is killing Europe, just as it's already wiped out much of the American middle class.
Spain and Greece are facing immediate crises that many other European nations see on the near horizon: aging boomer workers are retiring with healthy benefit packages, but the younger workers who are paying for those benefits aren't making anything close to the income (or, therefore, paying the taxes) that their parents did.
Globalists/corporatists/conservative "free market" and "flat earth" advocates say this is a great opportunity to cut benefits for the old folks (and for the young folks in the future), thus bringing the countries budgets back into balance, and this story is the main corporate media storyline.
But it overlooks the real issue (and the real solution): how globalization is killing these nations' economies and what can be done about it.
From the days of Adam Smith, classical economics pointed out that manufacturing and extraction are the only two ways to "create wealth."
"Wealth" is different from "income." Wealth is value, which endures at least for some time. Income is simply compensation for work. If you wash my car for $10 and I mow your lawn for $10, we have a GDP of $20 and it looks like we both have income and economic activity. But no wealth has been created, just income.
On the other hand, if I build your car, I'm creating something of value. And if you turn my lawn into a small farm that produces food we can all eat, you're creating something of value. Not only do we have an "economy" with a "GDP," we also have created wealth.
A stick on the ground has no commercial value, but if you add labor to it by carving it into an axe handle -- a thing of commercial value -- you have "created wealth." Similarly, metals in the ground have no commercial value, but when you add labor to them by extracting, refining, and forming them into products, you "create wealth." Even turning seeds and dirt and cows into hamburgers is a form of manufacturing and creates wealth.
This is the "Wealth of Nations" that titled Adam Smith's famous 1776 book.
On the other hand, when a trader at Goldman Sachs makes a "profit" trading stocks, bonds, or currencies, no wealth whatsoever is created. In fact, to the extent that that trader takes millions in commissions, pay, and bonuses, he's actually depleting the wealth of the nation (particularly to the extent that he moves his money offshore to save or invest, as many do).
To use the United States as an example, in the late 1940s and early 1950s manufacturing accounted for a high of 28 percent of our total gross domestic product (and much of the rest of the economy like agriculture that, in a classical sense is "manufacturing" wasn't even included in those numbers), and when Reagan came into office it was at a strong 20 percent. Today it's about ten percent of our GDP.
What this means is that we're creating less wealth here, because we're not making much anymore. (And the biggest growth in American manufacturing has been in the military sector, where goods are made that are then destroyed when they explode over foreign cities, causing even more of our wealth to vanish.)
The main effect of the globalism fad of the past 30 years -- lowering the protective barriers to trade that countries for centuries have used to make sure their own local economies are self-sufficient -- has been to ship manufacturing (the creation of wealth) from developed nations to developing nations. Transnational corporations love this, because in countries with lower labor costs and few environmental and safety regulations, it's more profitable to manufacture products. They then sell those products in the "mature" countries -- the places that used to manufacture -- and people burn through the wealth they'd accumulated in the earlier manufacturing days (home equity, principally, along with savings and lines of credit) to buy these foreign-manufactured goods.
At first, it looks like a good deal to consumers in developed nations. Goods are cheaper! But over a decade or two or three, as the creation of real wealth is reduced and the residue of the old wealth is spent, the developed nations become progressively poorer and poorer. At the same time, the "developing" nations become wealthier -- because those are the places that are producing real wealth.
Which brings us to Spain and Greece -- and the problem of all developed nations including the USA. So long as globalism continues apace, the transnational corporations and their CEOs will continue to become fabulously wealthy. But, more importantly, they also acquire the political power that comes with that control of economies.
So they tell us that instead of putting back into place tariffs, domestic content laws, and other "protectionist" policies that built America from the time the were first proposed by Alexander Hamilton in 1791 (and largely adopted by Congress in 1793) until they were dismantled by Reagan/Bush/Clinton/Bush, we should instead simple "accept the reality" that we're "living beyond our means" and we have to "cut back our wages and social programs."
In other words, they get richer, our nations become poorer, and national sovereignty is reduced.
Nations -- and in large countries like the USA, even states -- must again rebuild their manufacturing base and become locally self-sufficient, so their own consumers are buying products manufactured by their own workers.
"But won't that make Wal-Mart's stuff more expensive?" whine the flat-earthers.
Yes, it will. But most Americans (and Greeks and Spaniards) would gladly pay 10 percent more for the goods in their stores if their paychecks were 20 percent higher. And manufacturing paychecks have always been higher, because manufacturing is where "true wealth" is generated (thus the basis for most union movements, which further guarantee healthy worker income and benefits).
The transnational corporations benefiting from globalization are also, in most cases, the transnational corporations that own our media, so even the word globalization is rarely heard in reports on economic crises around the world.
But globalization is the villain here, and one that needs to be taken in hand and brought under control quickly if we don't want to see virtually the nations of the world end up subservient to corporate control, a new form of an ancient economic system known as feudalism.
Thom Hartmann (thom@thomhartmann.com) is a Project Censored Award-winning New York Times best-selling author, and host of a nationally syndicated daily progressive talk program The Thom Hartmann Show. www.thomhartmann.com His most recent books are "The Last Hours of Ancient Sunlight," "Unequal Protection: The Rise of Corporate Dominance and the Theft of Human Rights," "We The People: A Call To Take Back America," "What Would Jefferson Do?," "Screwed: The Undeclared War Against the Middle Class and What We Can Do About It," and "Cracking The Code: The Art and Science of Political Persuasion." His newest book is Threshold: The Crisis of Western Culture.
Buy, Buy, American Pie
Mickey Duehren provided this link/article.
Uncle Sam points out the problems we have when we buy cheap products from China. "Buy, Buy American Pie" was written and performed by the Capitol Steps. Visit them at www.CapSteps.com.
http://www.youtube.com/watch?v=Vq8wbXAR4ZQ
Published on Monday, February 8, 2010 by TruthDig.com | Link
by Chris Hedges
The conviction of the Pakistani neuroscientist Aafia Siddiqui in New York last week of trying to kill American military officers and FBI agents illustrates that the greatest danger to our security does not come from al-Qaida but the thousands of shadowy mercenaries, kidnappers, killers and torturers our government employs around the globe.
The bizarre story surrounding Siddiqui, 37, who received an undergraduate degree from MIT and a doctorate in neuroscience from Brandeis University, often defies belief. Siddiqui, who could spend 50 years in prison on seven charges when she is sentenced in May, was by her own account abducted in 2003 from her hometown of Karachi, Pakistan, with her three children—two of whom remain missing—and spirited to a secret U.S. prison where she was allegedly tortured and mistreated for five years. The American government has no comment, either about the alleged clandestine detention or the missing children.
Siddiqui was discovered in 2008 disoriented and apparently aggressive and hostile, in Ghazni, Afghanistan, with her oldest son. She allegedly was carrying plans to make explosives, lists of New York landmarks and notes referring to “mass-casualty attacks.” But despite these claims the government prosecutors chose not to charge her with terrorism or links to al-Qaida—the reason for her original appearance on the FBI’s most-wanted list six years ago. Her supporters suggest that the papers she allegedly had in her possession when she was found in Afghanistan, rather than detail coherent plans for terrorist attacks, expose her severe mental deterioration, perhaps the result of years of imprisonment and abuse. This argument was bolstered by some of the pages of the documents shown briefly to the court, including a crude sketch of a gun that was described as a “match gun” that operates by lighting a match.
“Justice was not served,” Tina Foster, executive director of the International Justice Network and the spokesperson for Aafia Siddiqui’s family, told me. “The U.S. government made a decision to label this woman a terrorist, but instead of putting her on trial for the alleged terrorist activity she was put on trial for something else. They tried to convict her of that something else, not with evidence, but because she was a terrorist. She was selectively prosecuted for something that would allow them to only tell their side of the story.”
The government built its entire case instead around disputed events in the 300-square-foot room of the Ghazni police station. It insisted that on July 18, 2008, the diminutive Siddiqui, who had been arrested by local Afghan police the day before, seized an M4 assault rifle that was left unattended and fired at American military and FBI agents. None of the Americans were injured. Siddiqui, however, was gravely wounded, shot twice in the stomach.
No one, other than Siddiqui, has attempted to explain where she was for five years after she vanished in 2003. No one seems to be able to explain why a disoriented Pakistani woman and her son, an American citizen, neither of whom spoke Dari, were discovered by local residents wandering in a public square in Ghazni, where an eyewitness told Harpers Magazine the distraught Siddiqui “was attacking everyone who got close to her.” Had Siddiqui, after years of imprisonment and torture, perhaps been at the U.S. detention center in Bagram and then dumped with one of her three children in Ghazi? And where are the other two children, one of whom also is an American citizen?
Her arrest in Ghazi saw, according to the official complaint, a U.S. Army captain and a warrant officer, two FBI agents and two military interpreters arrive to question Siddiqui at the police headquarters. The Americans and their interpreters were shown to a meeting room that was partitioned by a yellow curtain. “None of the United States personnel were aware,” the complaint states, “that Siddiqui was being held, unsecured, behind the curtain.” The group sat down to talk and “the Warrant Officer placed his United States Army M-4 rifle on the floor to his right next to the curtain, near his right foot.” Siddiqui allegedly reached from behind the curtain and pulled the three-foot rifle to her side. She unlatched the safety. She pulled the curtain “slightly back” and pointed the gun directly at the head of the captain. One of the interpreters saw her. He lunged for the gun. Siddiqui shouted, “Get the fuck out of here!” and fired twice. She hit no one. As the interpreter wrestled her to the ground, the warrant officer drew his sidearm and fired “approximately two rounds” into Siddiqui’s abdomen. She collapsed, still struggling, and then fell unconscious.
But in an article written by Petra Bartosiewicz in the November 2009 Harper’s Magazine, authorities in Afghanistan described a series of events at odds with the official version. The governor of Ghazni province, Usman Usmani, told a local reporter who was hired by Bartosiewicz that the U.S. team had “demanded to take over custody” of Siddiqui. The governor refused. He could not release Siddiqui, he explained, until officials from the counterterrorism department in Kabul arrived to investigate. He proposed a compromise: The U.S. team could interview Siddiqui, but she would remain at the station. In a Reuters interview, however, a “senior Ghazni police officer” suggested that the compromise did not hold. The U.S. team arrived at the police station, he said, and demanded custody of Siddiqui. The Afghan officers refused, and the U.S. team proceeded to disarm them. Then, for reasons unexplained, Siddiqui herself somehow entered the scene. The U.S. team, “thinking that she had explosives and would attack them as a suicide bomber, shot her and took her.”
Siddiqui told a delegation of Pakistani senators who went to Texas to visit her in prison a few months after her arrest that she never touched anyone’s gun, nor did she shout at anyone or make any threats. She simply stood up to see who was on the other side of the curtain and startled the soldiers. One of them shouted, “She is loose,” and then someone shot her. When she regained consciousness she heard someone else say, “We could lose our jobs.”
Siddiqui’s defense team pointed out that there was an absence of bullets, casings or residue from the M4, all of which suggested it had not been fired. They played a video to show that two holes in a wall supposedly caused by the M4 had been there before July 18. They also highlighted inconsistencies in the testimony from the nine government witnesses, who at times gave conflicting accounts of how many people were in the room, where they were sitting or standing and how many shots were fired.
Siddiqui, who took the stand during the trial against the advice of her defense team, called the report that she had fired the unattended M4 assault rifle at the Americans “the biggest lie.” She said she had been trying to flee the police station because she feared being tortured. Siddiqui, whose mental stability often appeared to be in question during the trial, was ejected several times from the Manhattan courtroom for erratic behavior and outbursts.
“It is difficult to get a fair trial in this country if the government wants to accuse you of terrorism,” said Foster. “It is difficult to get a fair trial on any types of charges. The government is allowed to tell the jury you are a terrorist before you have to put on any evidence. The fear factor that has emerged since 9/11 has permeated into the U.S. court system in a profoundly disturbing way. It embraces the idea that we can compromise core principles, for example the presumption of innocence, based on perceived threats that may or may not come to light. We, as a society, have chosen to cave on fear.”
Read the rest of this article here.
Health Care Reform Rally, Portland, Feb 17, 5:30pm
Health Care for American Now, MoveOn , and Jobs with Justice are hosting a Portland Rally for health care through the Health Care for American Now website, http://healthcareforamericanow.org/page/event/detail/4jvjf
Terry Schrunk Plaza
February 17th
5:30 PM to 6:15 PM
Bring your single payer signs and banners and help make the message all single payer.
More Blithering Right-Wing Idiots
Palin's Tea Party Crib Notes
By Stefan Sirucek, 2/7/10, The Huffington Post | Link
Charles Baccus provided this article/link.
Closer inspection of a photo of Sarah Palin, during a speech in which she mocked President Obama for his use of a teleprompter, reveals several notes written on her left hand. The words "Energy", "Tax" and "Lift American Spirits" are clearly visible. There's also what appears to read as "Budget cuts" with the word Budget crossed out.
Just to be clear: The notes most likely weren't for her speech, for which she used prepared remarks, but for the Q&A session that followed, during which she glanced at the hand in question.
But in my opinion that's even worse.
There were no specifics on there, just general concepts and things she supports.
The takeaway is that this presidential contender apparently can't remember her supposed core principles and needs a cheat-sheet when simply asked about her beliefs.
To quote Charlie Brown:
Good grief.
FactCheck.org Fact-Checked Sarah’s Speech
Palin makes a few errors in her convention speech -- and on Fox News Sunday.
February 8, 2010
Summary
Sarah Palin made a splash over the weekend as the keynote speaker at the first National Tea Party convention, and she followed up with an interview on Fox News Sunday. But she didn't always stick to the facts.
· Palin implied that the Nigerian would-be Christmas Day bomber stopped talking after he was read his Miranda rights. He did, but not for good. He began talking again extensively after counterterrorism agents enlisted the help of his family, and he has provided information on all the subjects Palin mentioned, authorities say.
· Palin stretched the truth when she said that $6 million in stimulus funds went to a Democratic pollster. In fact, only $4.36 million was spent on the contract, which was with the giant public relations firm Burson-Marsteller, where the pollster is CEO.
· Palin repeated her oft-stated, greatly exaggerated claim that Alaska produces 20 percent of the U.S. domestic energy supply. The actual figure is just under 2.9 percent.
· Her claim that the state spent "millions" dealing with ethics complaints against her is one that has been disputed. Her own tally is less than $2 million, and an Anchorage newspaper said most of that was salaries of state workers who would have been paid whether or not Palin was being investigated.
Note: This is a summary only. The full article with analysis, images and citations may be viewed on our Web site:
Utah state representative claims climate change is a ‘conspiracy’ aimed at population control
By Matt Corley on Feb 6th, 2010 at 11:21 am | Link
Charles Baccus provided this article/link.
On Thursday, the Utah House Natural Resources Committee passed a resolution expressing the legislature’s belief that “climate alarmists’ carbon dioxide-related global warming hypothesis is unable to account for the current downturn in global temperatures.” The resolution, which now goes to the full House for a vote, urges the EPA to not regulate pollution blamed for climate change “until a full and independent investigation of the climate data conspiracy and global warming science can be substantiated.” When some members of the committee questioned the “conspiracy” wording as “pretty inflammatory,” Rep. Mike Noel (R) claimed that climate change is “in fact a conspiracy to limit population not only in this country but across the globe”:
But Noel defended the “conspiracy” wording, pointing to an out-of-print textbook, Ecoscience: Population, Resources, Environment , written in the 1970s by biologist Paul Ehrlich, Ehrlich’s wife, Anne, and physicist John Holdren about the potential hazards of unchecked population.
The Kanab Republican, referring to Holdren as the Obama administration’s “energy czar,” read from passages of the 1,000-plus-page tome about population-control alternatives that included abortion and forced sterilization. He did not share the authors’ conclusion: that voluntary population-limiting methods are “a far better choice.”
“Now, if you can’t see a connection [of a conspiracy] to that,” the legislator said, “you’re absolutely blind to what is going on. This is absolutely — in my mind, this is in fact a conspiracy to limit population not only in this country but across the globe.”
Discussing the resolution yesterday, Noel said that “sometimes when we don’t have all the answers, we need to have the courage to do nothing.”
Char LaFollette provided this article/link.
http://www.youtube.com/watch?v=pQ50PYMXDCQ
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