Ian Welsh

The horizon is not so far as we can see, but as far as we can imagine

Capitalism as Mental Illness, by Eric Anderson

It’s axiomatic that any system preying upon the vulnerabilities of the many, to profit the few, is both a moral and ethical atrocity. Capitalism embodies such a system. As originally conceived by Adam Smith “selfish interest” would theoretically extend “that universal opulence … to the lowest ranks of people.” But at some historical point his creation escaped. It turned malignant. Today, it serves only to increase the opulence of the opulent, while recruiting the rest of us to wage perpetual war against each other for survival. When, and why, did this occur? I’ll begin with a brief technical digression.

Psychologists have long used the diathesis/stress model to explain mental illness. The DSM-V defines mental illness as a syndrome of disturbances in cognition, emotion regulation, or behavior reflecting dysfunction in psychological, biological, or development processes. In medical terms, a diathesis is defined as a tendency to suffer from some latent condition. Stress defined as a state of mental or emotional strain resulting from adverse circumstances. Also known as the vulnerability–stress model, the model attempts to explain mental illness as the result of the interaction between latent vulnerabilities (diathesis) and adverse life experiences (stress).

Not coincidentally, the U.S. leads the world in mental illness. More than 50% of us will be diagnosed with a mental illness or disorder at some point in our lifetime, and 20% of us will experience a mental illness in a given year. The perversion of Adam Smith’s originally benign, and arguably beneficial early conception is to blame — and the story of John Watson marks a good starting point to the divergence.

Watson was a behavioral psychologist at John Hopkins University, who, together with his research assistant Rosalie Rayner, conditioned an infant to fear a white rat by loudly striking a metal rod every time the rat was introduced. “Baby Albert’s” aversion was then extended to white rabbits, dogs, and cats. Watson made no attempt to decondition Albert leading to severe developmental and emotional difficulties.

Subsequently, the discovery of an affair with Ms. Rayner led to Watson’s expulsion from John Hopkins in disgrace (quaint — what progress we’ve made). It’s also known that three out of four of Watson’s children attempted suicides, two of them succeeding, due to Watson employing his children as subjects of his conditioning techniques. Yes, he was a moral monster.

But the moral monster landed on his feet. He took his ‘talents’ on the road to New York City where he rapidly climbed to the upper echelons of the Madison Avenue advertising world. He did so by employing his conditioning techniques on a public totally unprepared for incessant psychological warfare. Watson also inspired Edward Bernays — known as the Father of Propaganda — who is credited with ad campaigns popularizing female smoking under the banner of freedom. In short, Watson’s behaviorism copulated with Smith’s self interest and spawned the science of exploiting psychological vulnerability for profit. Capitalism became mental illness the moment diathesis met stress.

And long before the science of psychology, theology recognized that we all possess multiple diatheses that reduce our humanity. Christianity warned us against indulging these psychological vulnerabilities. They’re called the seven deadly sins, which are: pride, greed, lust, envy, gluttony, wrath, and sloth. But virtually every religion forewarns against overindulgence in these base emotions and behaviors. Advertising, invariably appeals to precisely these base impulses.

Tying back to psychology, one’s imagination need not roam far to begin drawing parallels between these “sins,” and the ten recognized DSM-V personality disorders, known as: paranoid, schizoid, schizotypal, antisocial, borderline, histrionic, narcissistic, avoidant, dependent, and obsessive-compulsive disorders. Ultimately, one could go on at book length about the relationship between sin and psychological disorder. But for the sake of brevity, I’m certain you take my point.

As to the stress mechanism, Adam Smith supplied that with his theory of “selfish interest” providing collective benefit. And while it’s inarguable that being forced to compete in a self reinforcing and ever accelerating rat race has provided us with many industrial and technological milestones, we must ask ourselves: at what cost? The fracture of social cohesion? The immiseration of the many to benefit the few? Graft and corruption?

Over generations now, the diatheses and the stresses have combined and evolved together, entwining ever more tightly like tentacles around our collective throat. Over generations we have become inured to the impact upon our mental health. But make no mistake, the impact is real, as evidenced by a society that has become morally and ethically unhinged.

Ethically, our collective conception of the the utility of preying on the vulnerable among us is commonplace. We pride ourselves in becoming rich by selling snake oil. We turn our backs upon the poverty stricken while shunning them to makeshift camps, which we then tear down with impunity. And as amply demonstrated by the Covid 19 pandemic, we turn our backs on the oldest and youngest among us in the name of protecting the rights of the strong. We’re destroying the very planet that sustains us and massacring our fellow species that inhabit it in an orgy self-loathing masochism. Why? Why do we it find so difficult to be humane?

In a word: fear. We are taught to fear the success of our fellows by teachers aiming a fire hose of capitalist propaganda at us from the moment of conception. We are taught young to fear our precarious positions in life. And thus, we fight interminably for ascendance to the promise of opulence, displayed on TV by the Jones’ we’ll never meet. And from fear arise those close cousins: pride, greed, lust, envy, gluttony, wrath, and sloth. Oh, how well we’re taught young to fear falling behind those ubiquitous Jones’, ever parading their opulence before our eyes.

The result is predictable. Morally, our political leaders and captains of industry are insane with greed for wealth and power. How does someone need billions of dollars? And how can someone possessing billions of dollars look around the world, witness mass suffering, and do nothing about it while possessing the means to fix it? How can they use every tool at their disposal to crush the efforts of those who would try?

The answer is simple. Latent vulnerabilities, coupled with the stress of the hyper-competitive environment they were raised in, drive them insane. We all possess psychological vulnerabilities. We’re all incessantly exploited by well rehearsed behavioral tools. Algorithms, we call them now. And coupled with a conditioned creed to compete only for our own selfish interest, we’ve all grown sick in the mind.

Psychologically, we have been conditioned to accept an ethical system that treats atrocity as mundane, while simultaneously lionizing morally diseased monsters. We’re swaddled from birth in fear. We’re coddled on competition. And we age into insanity. This isn’t a portrait of a mentally healthy society. It’s a portrait of depravity on a mass scale — of capitalism as mental illness.

Week-end Wrap – Political Economy – February 19, 2023

by Tony Wikrent

 

War

“The Sy Hersh effect: killing the messenger, ignoring the message”

[Responsible Statecraft, via Naked Capitalism Water Cooler 2-16-2023]

“Absolute crickets. That is the sound in the major mainstream media — both foreign and domestic — following the charges by veteran investigative journalist Seymour Hersh that the United States led a covert operation to blow up the Nord Stream pipelines in September 2022…. Second, they point to what appears to be “single sourcing” in Hersh’s Substack report (though he is much more ambiguous about this in his interview with Radio War Nerd this week). Additionally, Twitter and Substack sleuths, using OSINT (open source intelligence,) say they’ve found holes in the details (like the class of minesweeper ship involved and where it was located the day Hersh claims the explosives were planted) that cast doubt on his entire story. But the questions raised about Hersh and his reporting (appropriate or not) do not explain the lack of mainstream coverage of his extremely detailed, 5300-word article, which under any other circumstances should have opened the floodgates of journalistic inquiry. … Media critic, author, and podcaster Robert Wright suggests the media blackout is part of an ongoing trend of one-sided and incurious Ukraine War coverage. He pointed to explosive, yet little-reported claims by former Israeli prime minister Neftali Bennett earlier this month that the West had killed a tentative peace deal between Russia and Ukraine last March. ‘In some ways I think MSM’s more or less ignoring Naftali Bennett’s comments on aborted early-March Ukraine negotiations is even less excusable than ignoring the Hersh story,’ Wright said in an email exchange with RS. ‘MSM can always say Hersh is now just a freelancer and was relying basically on a single anonymous source, etc — but Bennett is an eyewitness to what he’s describing, and he’s the former prime minister of Israel!’”

 

NATO Turning to Target China? Western Alliance Developing Plan For Multiple Simultaneous Conflicts 

[Military Watch Headlines, via Mike Norman Economics 2-15-2023]

On February 14 a high ranking NATO source, cited by Bloomberg, warned that NATO members were preparing plans for the alliance to involve itself in multiple conflicts simultaneously – including conflicts beyond its traditional areas of responsibility. During meetings in Brussels on February 14-15 NATO Defence Ministers will sign a classified guidebook containing plans of action for “high intensity” conflicts and conflicts “beyond the area of responsibility” of the alliance, which will include requirements for NATO members’ military investments. Members will additionally be directed to redirect investments to the sectors seen as most important for collective security – whether it be tank forces or missile defences – to strengthen the military bloc’s collective warfighting capabilities. The report comes as NATO members have not only increasingly involved themselves in the ongoing Russian-Ukrainian War, whether by dispatching hundreds of Marines to the battlefield as in Britain’s case, or providing even larger personnel contributions through private military contractor groups as was done by Poland among others. As Western intervention in the conflict has continued to increase, NATO members have also expanded their military footprints in the East Asia aimed at China – most recently in the form of aerial warfare drills involving the U.S., Britain and Australia.…

 

Ukraine is burning through ammunition faster than the US and NATO can produce it. Inside the Pentagon’s plan to close the gap 

[CNN, via Naked Capitalism 2-17-2023]

 

Radio War Nerd EP #366 — Seymour Hersh on US Bombing Nord Stream Pipelines (postcast; unlocked)

[Radio War Nerd, via Naked Capitalism 2-13-2023]

 

“Mike Gallagher: A New Cold Warrior”

[RealClearPolitics, via Naked Capitalism Water Cooler 2-14-2023]

“The West is unprepared for everything all at once…. Well, at least that is what Rep. Mike Gallagher along with a team of academics and generals had to imagine when they poured over what looked like the most complicated “Risk” board ever assembled. It was only a war game, an exercise hosted last May by the Center for a New American Security…. If the U.S. and China go to war, the Wisconsin Republican said in a ‘Meet the Press’ interview, ‘a lot of people are going to lose their lives.’ The lesson: ‘We want deterrence to actually work.’ That is also the mission statement, in so many words, of the House Select Committee on China which Gallagher now chairs, a mammoth undertaking to examine not just the military risk but also the ideological and economic threats presented by the Chinese Communist Party. It is serious business. And Gallagher, a 38-year-old former U.S. Marine, is a serious man. Everyone says so. There is a feeling in Congress that the effort might just rise above the normal self-importance of Capitol Hill. ‘The word ‘serious’ has been tossed around about this committee because that’s the desire,’ said Rep. Mikie Sherrill. Confronting an existential threat, the New Jersey Democrat told RealClearPolitics, shouldn’t be something members ‘do for personal edification or partisan means.’ And that’s what had Gallagher ‘worried’ when he pulled her aside. The two have served on committees together, and they teamed up in the CNAS war game. A U.S. Navy pilot before entering politics, Sherrill said during that exercise she appreciated the Marine’s ‘knowledge of ground operations.’ His question on the House floor, between votes earlier this year, didn’t have to do with tactics or grand strategy. Who would the Democrats seat on his committee?”

 

The Calamity of America’s ‘Divine Mission’ 

[Consortium News, via Naked Capitalism 2-14-2023]

[TW: Quoting John Quincy Adams to rebut Robert Kagan’s war mongering. We need to see much more like this! ]

 

Democrats’ political suicide

Biden DOJ Backing Norfolk Southern’s Bid To Block Lawsuits 

Rebecca Burns & Julia Rock, February 16, 2023 [The Lever]

In the case against Norfolk Southern, the Biden administration is siding with the railroad in its conflict with a cancer-stricken former rail worker. A high court ruling for Norfolk Southern could create a national precedent limiting where workers and consumers can bring cases against corporations.

The lawsuit in question, filed initially in a Pennsylvania county court in 2017, deals with a state law that permits plaintiffs to file suit against any corporation registered to do business there, even if the actions that gave rise to the case occurred elsewhere.

In its fight against the lawsuit, Norfolk Southern is asking the Supreme Court to uphold the lower court ruling, overturn Pennsylvania’s law, and restrict where corporations can be sued, upending centuries of precedent….

If the court rules in favor of Norfolk Southern, it could overturn plaintiff-friendly laws on the books in states including Pennsylvania, New York, and Georgia that give workers and consumers more leeway to choose where they take corporations to court — an advantage national corporations already enjoy, as they often require customers and employees to agree to file litigation in specific locales whose laws make it harder to hold companies accountable.

Open Thread

Use to discuss topics unrelated to recent posts.

Last week’s posting was light due to some minor but rather unpleasant illness. Should return to normal next week.

The Core Of Class Struggle From Below

Is just “all our lives will be good, or yours won’t be.”

Since there’s always some idiot who reads these posts and thinks they’re smart, no this doesn’t mean everything turns out identical or that some people won’t get cancer.

It means everyone gets enough if society has it, and gets treated fairly. It means that if a rich or powerful person gets cancer they get the exact same treatment the poorest and weakest person in society does. It means money and power can’t get you anything that actually matters: not education, not health care, not food when other people are going hungry.

“No one gets seconds until everyone has had firsts.” And no one gets thirds till everyone who wants them has had seconds.

The job of actual class struggle is to make it so that the rich and powerful can’t enjoy their wealth and power until everyone is taken care of and treated the same.

This is why the gays got Obama to support gay marriage by the way. It seems to be forgotten by Obama was an anti gay marriage bigot who recorded a call against gay marriage and whose chaplain for his inauguration was anti-gay marriage. So the gays, a lot of whom had carried water for  him during the election did two things: they cut off the donations, hard, and they went after his wife: broke into a fundraising party and made her life miserable.

Oh, the squeals. The hand-wringing.

But it was pretty mild, she gets to be famous and rich because of her husband and she carried  his water, for sure. She can take a little screaming and if she can’t, too bad.

But as I said, this is mild. Things will be serious when people start saying “if you make one of us dead or homeless, we make one of you dead or homeless.”

We’re all in the same life raft, or we aren’t and if we aren’t, then the only solution is to put us in the same raft and make the powerful bail and drown with the rest of us.


The results of the work I do, like this article, are free, but food isn’t, so if you value my work, please DONATE or SUBSCRIBE.

Schooling Kills Creativity And Then Work Buries It

So, there are different measures of creativity. One of them is divergent thinking, the ability to come up with lots of different ideas. George Land created a famous test for NASA, then applied it to children. Test-takers were given a problem and then had to come up with many different ways to tackle it.

Land’s dead now but before  he died he gave a Ted talk. Generally loathe them, but this one is interesting.

As for the results of his test…

Yeah. Woops. The reason for this is simple (and I can hear some regular readers eyes rolling, since this is a subject I’ve talked about a lot.) School is about coming up with the “right” answer the “right” way. There aren’t 50 right ways. I have many memories of coming up with the right answer in math, for example, using different methods than the teacher and being downgraded for it.

In math there’s often a “right” answer but in other disciplines, there isn’t one. What caused the French revolution or World War I? There isn’t a right answer.

Now, perhaps you’re thinking “but the social sciences and humanities are different.”

Oh, somewhat.

Back in the 90s I used to tutor university students. I’d tell them I could teach them to consistently get a B, but not an A, because the extra step from B to A was knowing the person who is marking your tests and essays, and both working them so they like and respect you and tailoring your answers to their prejudices. It’s actually harder to get get an A in the humanities and social sciences than in the sciences and in math. I’ve gotten 100% on a chemistry or physics test. I have never done so on a paper or non multiple choice test in the humanities or social sciences because there isn’t a correct answer.

But you will get higher grades if you learn to give the marker about what they want.

In the sciences it’s about getting the right answer the right way. In the humanities and social sciences it’s a social game of “please the market” or in very rigid standardized tests of “please the test designer.”

In realm of the real world this leads to the something called “best practices”, which I loathe. There are no such things as best practices. That doesn’t mean you can’t teach workers what is known to work, but if you enforce “best practices” then they can’t innovate. If you tell people “how” to do something, rather than say “I need you to accomplish X” you shut down learning and creativity and you also strangle advancement.

People have to be free to try new things. There are degrees of this, of course, in some cases the task still needs to get done. But mandating how and not what stiffles progress and creativity faster than almost anything else.

What we do to children and adults is psychologically cripple them. It’s better, in our society, to be wrong with the pack or in the approved fashion than to be right against the pack or  using non-standard methods.

Very, very much better. In the pack, wrong with the pack, or more accurately wrong in the way leader-teacher wants you to be, you’re safe.

But get it right the wrong way, or get it wrong trying something new, and you’re toast.

We all know this, but many of us refuse to admit it and this is especially true with regards to school. We spent more awake time in school for twelve to sixteen or more years than we did anywhere else, except in some cases home. That creates strong identification. We either want to believe school is good, or we rebel against it, but very few people can remain neutral. If something “must” be then it must be good.

But school teaches (eye-roll time) us to be a bunch of conformists, giving teacher what they want in the way they want, sitting down and not even talking or using the bathroom without permission.

That’s school and denying that is what school is is rank stupidity.

It’s also most workplaces. You replace teacher with boss.

And then you think you’re free when you’ve spent most of your life doing what you were told, the way you were told to do it.

(By the way, one corollary of Land’s test is that you started out as a creative genius. Perhaps you can be one again? It’s not nature that made you un-creative. Nature started you as a genius.)


The results of the work I do, like this article, are free, but food isn’t, so if you value my work, please DONATE or SUBSCRIBE.

 

Week-end Wrap – Political Economy – February 12, 2023

by Tony Wikrent

 

War

Seymour Hersh: Navy Divers + Spooks + Norway Took Out Nord Stream 2 on Biden’s Orders, Using Timer

[Naked Capitalism, 2-8-2023]

 

How America Took Out The Nord Stream Pipeline

Seymour Hersh, February 8, 2023

The U.S. Navy’s Diving and Salvage Center…. has been training highly skilled deep-water divers for decades….

Last June, the Navy divers, operating under the cover of a widely publicized mid-summer NATO exercise known as BALTOPS 22, planted the remotely triggered explosives that, three months later, destroyed three of the four Nord Stream pipelines, according to a source with direct knowledge of the operational planning….

There was a vital bureaucratic reason for relying on the graduates of the center’s hardcore diving school in Panama City. The divers were Navy only, and not members of America’s Special Operations Command, whose covert operations must be reported to Congress and briefed in advance to the Senate and House leadership—the so-called Gang of Eight. The Biden Administration was doing everything possible to avoid leaks as the planning took place late in 2021 and into the first months of 2022.

 

Sources say 

[Washington Examiner, via Naked Capitalism, 2-10-2023]

Hersh’s story — all 5,000-plus words of it — is based entirely on a lone anonymous source “with direct knowledge of the operational planning.” That’s it. Hersh supplies no further evidence proving unequivocally the United States planned and executed what would be rightly viewed as an “act of war.”

 

WHAT’S WRONG WITH THE HERSH REPORT ON THE NORD STREAM ATTACKS

John Helmer [Dances with Bears, via Naked Capitalism, 2-11-2023]

 

The Top Five Lessons from Year One of Ukraine’s War 

Stephen Walt (Professor of International relations at the Harvard Kennedy School) [Foreign Policy, via Naked Capitalism, 2-10-2023]

 

Losses in Ukraine are ‘out of proportion’ to what NATO has been planning for, the alliance’s top general says 

[Business Insider, via Naked Capitalism, 2-10-2023]

 

What Russia Got Wrong 

[Foreign Affairs, via Naked Capitalism, 2-10-2023]

“The Russian armed forces are not wholly incompetent or incapable of learning.”

 

The Economics of the Ukraine Proxy War with Michael Hudson and Radhika Desai

[Naked Capitalism, 2-6-2023]

Michael: Well the whole purpose of the war is economic, but it’s not economic just about Ukraine and the winners and losers of the United States and Europe.

President Biden has said this is a ten- or a twenty-year war, and it’s [a war] for what kind of economy [the world is] going to have.

Is it going to be a finance-based neoliberal rentier economy centered in the United States, with the United States controlling all of the monopoly rents:….

Radhika: …if you look at a map of the world, of all the countries in the world that are imposing sanctions on Russia [and] supplying arms to Ukraine — what you see is essentially the core of world capitalism as it was in 1914, with a few little additions — very tiny, very insignificant, not very economically important [additions].

Whereas the entire rest of the world is going in the other direction, and the divide between this “West” and “the rest” is growing precisely in the ways that Michael is saying.

The West [has basically been] in a long-term trend of decline, but the Western leaders have continued to pursue the policies that are responsible for the decline, because even though [those policies] are not good for the economy, they are great for the monopoly financialized corporations of the West which, as Michael says, have become more and more reliant on rentier income — on rent and interest — rather than profits from production….

Remember, all the major European countries know who blew up the Nord Stream pipeline. [They know] that the United States is so ruthless in its efforts to achieve the goals that Michael just outlined that they are willing to go as far as actually blow up a [so-called] friendly country’s infrastructure. So that’s what you’re looking at….

…recently there has been a Rand Corporation report — the Rand Corporation being very close to the U.S. administration— which has been interpreted in very different ways. The warmongers say [that] the Rand Corporation says, we have to continue this war and intensify it and prolong it and so on. Others are saying it means something completely different

So I think that what we have to realize is that the U.S. is trying to achieve a whole range of conflicting objectives. I think one [objective] is obviously to try and retain its purchase on world affairs, [and] try and retain its dominance on world affairs. It’s not succeeding but that’s what the effort is about.

At the same time the US is also trying to profit. The military-industrial complex is profiting. It’s making money hand over fist. Not only right now, but we should watch the coming U.S. budget. Basically it looks as though the Pentagon and associated interests are going to use the Ukraine war as a way of essentially increasing the contracts being given to the five major U.S corporations [which have dominated] over the 20 years or 30 years since the end of the Cold War.

What used to be dozens and dozens of military suppliers have become condensed into five. You can imagine if there are only five, they find it very easy to talk to the American government. They are making money, [and] they are going to take long term contracts under the guise of — Obviously people like them want to prolong the Ukraine war.

But there are also a whole bunch of other things. For example, we are being told [that] the United States is “aiding Ukraine.” And in order to aid Ukraine the United States has passed a new version of the Lend-Lease Act through which it had “aided” European countries during the [Second] World War. But if you look more closely at the Lend-Lease Act, what you see very clearly is the opposite of that.

Most people, when they hear the word “aid,” they think that the United States is giving money to Ukraine. It’s not giving money to Ukraine. If you look at this text of the [Ukraine Democracy Defense Lend-Lease Act of 2022] that was passed and look at clause 3, it says very clearly,

“(3) CONDITION.—Any loan or lease of defense articles to the Government of Ukraine under paragraph (1) shall be subject to all applicable laws concerning the return of and reimbursement and repayment for defense articles loaned or leased to foreign governments.”

Ukraine is going to have to pay for this….

The United States is also sending two kinds of weapons. Number one: obsolete weapons that it needs to get rid of anyway. This way it gets to make money out of assets that they would have had to write off otherwise. [Number two:] it wants to send those weapons which its military industrial complex corporations want to have tested in “battle conditions.”

On Youtube

.

 

Amartya Sen’s Work Shows Us the Human Cost of Capitalist Development 

Benjamin Selwyn [Developing Economics, via Mike Norman Economics, February 10, 2023]

Sen’s 1981 book Poverty and Famines was an essential intervention into the political economy of famine and the analysis and alleviation of hunger. Born in 1933, the economist grew up in British-controlled India and experienced firsthand the 1943 Bengal famine, in which at least three million people perished.

Dominant explanations of the Bengal famine as well as other famines and episodes of widespread hunger resort to food availability decline (FAD) arguments. Simply put, they argue that there were too many mouths to feed.Sen’s 1981 book Poverty and Famines was an essential intervention into the political economy of famine.

By contrast, Sen showed how in a series of cases, from Bengal in the 1940s to the Bangladesh famine of 1974, food was available at the time — often in higher quantities than during non-famine periods. Crucially, it was not the absolute volume of food that determined whether people died or lived, but the capitalist price mechanism.

Sen demonstrated that the Bengal famine was caused by rapid price inflation rather than crop failure. British military and civil construction investments, including air strips, barracks, munitions, and clothing for soldiers and civilians, fueled such inflation. It pushed up food prices in relation to agricultural wages, leaving agricultural laborers unable to afford food….

Sen’s arguments in Poverty and Famines were a necessary counterargument to the mainstream apologetics for mass hunger. Such arguments often ended up blaming the poor themselves for being too numerous, conveniently obscuring how the capitalist economy continually reproduces poverty.Despite his perspicacity, even Sen himself underestimated the deliberately manufactured causes of the Bengal famine.

However, more recent scholarship has shown that despite his perspicacity, even Sen himself underestimated the deliberately manufactured causes of the Bengal famine. His analysis is thus incomplete as an explanation for the persistence of global hunger.

Indian academic Utsa Patnaik’s study of the Bengal famine demonstrates how the price inflation in Bengal represented a deliberate British policy. This policy was recommended by none other than the famed liberal political economist John Maynard Keynes.

In the context of the UK’s wartime crisis, Keynes advocated “profit inflation” to achieve a “forced transference of purchasing power” from the mass of the population to the British exchequer. Military investments in Bengal were to be paid for by printing money, without regard for their impact upon the poor of the region.

The increased money supply pushed up prices, benefiting the region’s capitalists who were then taxed in turn by the colonial state. The state used these funds to raise its military investments in India itself while siphoning off surplus funds to the UK exchequer to finance its European war effort.

As Patnaik puts it:

“Without deliberate state policy of curtailing mass consumption, over £1,600 million of extra resources could not have been extracted from Indians during the war, with the bulk of this enormous burden falling on the population of Bengal since the Allied forces were located in and operated from that province. The state policy was to induce a very rapid profit inflation which redistributed incomes away from the working population, towards capitalists and companies, which were then taxed.”

….At present, the world already produces 1.5 times the amount necessary to feed everyone on the planet — indeed, it produces enough to feed even a population as high as ten billion by 2050.The problem of world hunger is not insufficient food but rather the poverty and unequal power relations that are intrinsic to capitalism.

The problem of world hunger now, as in the cases analyzed by Sen, is not insufficient food but rather the poverty and unequal power relations that are intrinsic to capitalism. The world’s poor simply do not have the money to pay for the food they need to live healthy lives….

 

Global power shift

Jeffrey D. Sachs – The New Geopolitics

[Brave New World, via Mike Norman Economics 1-5-2023]

There are at least five major theories about the current geopolitics. The first three are variants of the Hegemonic Stability Theory; the fourth is the important school of international realism. The fifth is my preferred theory of multilateralism, based on the pre-eminent importance of global cooperation to solve pressing global problems.

The Hegemonic Stability Theory, favored by American elites in politics, government, and academia, holds that the United States remains the world’s hegemon, the sole superpower, albeit a hegemon that is challenged by a rising competitor, China, and by a lesser but nuclear-armed competitor, Russia….

In the past 30 years, three basic economic changes have transformed geopolitics. The first is that the U.S. share of global output declined from 21.0 percent in 1991 to 15.7 percent in 2021, while China’s rose from 4.3 percent in 1991 to 18.6 percent in 2021. The second is that China has overtaken the United States in total GDP and has become the leading trade partner for much of the world. The third is that the BRICS, constituting Brazil, Russia, India, China, and South Africa, have also overtaken the G7 countries in total output. In 2021, the BRICS had a combined GDP of $42.1 trillion (measured in constant 2017 international prices), compared with $41.0 trillion in the G7. In terms of combined population, the BRICS, with a 2021 population of 3.2 billion, is 4.2 times the combined population of the G7 countries, at 770 million. In short, the world economy is no longer American-dominated or Western-led. China is of comparable overall economic size to the United States, and the large middle-income countries are a counterweight to the G7 nations….

 

The New Map Of Oil: How India Turns Russia’s Crude Into The West’s Fuel 

[Bloomberg, via Naked Capitalism 2-5-2023]

Open Thread

Use to discuss topics unrelated to recent posts.

Dog Bites Man: The US (With Foreign Allies) Did Blow Up The Nord Stream Pipelines

I mean, I feel kind of lame for even posting about this because unless you were stupid (or on the payroll) you knew it was either the US or an ally, and if an ally the US was involved.

Turns out it was the US and Norway. Seymour Hersh.

Of course he had to post this on his substack because not a single mainstream outlet will publish it.

A Dalek commented how surprising the CIA’s competence was in this operation, but what I find interesting is how effective media control is now: if no one will cover it, did it even happen? The level of control over the media is astounding, and the majority of it is tacit, I doubt the CIA had to call outlets and say “don’t publish Hersh”, the people in charge know what their job is and do it without any threats, then see themselves on the same side as the CIA and if a truth is too inconvenient, well, it isn’t important.

It really does remind me of the early post 9/11 and Iraq War period, where you just couldn’t tell the truth and be heard on anything mainstream, and trying was a career death sentence.

And yeah, I do think this is worse than it was in the past. The old media was corrupt and often complicit, too often, but it wasn’t this bad. A combination of almost every media asset being owned by just a few companies and the Ivy League takeover of journalism jobs, which used to be working class, has made the vast majority of the media little more than collaborators with the powers that be.

I’m a bit of a broken record on this, but I still find it extraordinary that they lied about Corbyn about 80% of the time. Amazing.

Anyway, Norway (who made 40 billion more a year from taking sales from Russia) and the US who has also made a mint selling Europe natural gas, turn out to be the nations responsible for destroying Nord Stream, which I’d say was an act of war. Turns out the nations with the most to gain were the criminals. What a surprise. (Though I did think Poland might have been involved, as they had other things to gain. Turns out greed was the primary factor, not ideology.)

Dog bites man. It is tedious that this had to be proved. The amount of cycles wasted by intelligent people proving what is obvious to anyone who isn’t a moron or dishonest is pathetic. (And this nonsense is why I rarely bother proving the obvious any more. It’s just meant to waste cycles and anyone asking for proof of the obvious is not an honest interlocutor.)

Note: corrected “cover” to “publish”, which was my original intent.


The results of the work I do, like this article, are free, but food isn’t, so if you value my work, please DONATE or SUBSCRIBE.

Page 160 of 532

Powered by WordPress & Theme by Anders Norén