The world is a complex place and any simple description of it will be incomplete, but I think it is fair to say we are the subjects of an artificial system of theft and oppression that continues to make the world harder to live in.
Look at the sources of power in the world. Look at government, corporations and the media. Laws written for rich people have created a system where it is necessary for us all to sell our labour to the owners of businesses. They own the land, the factories, the offices, the infrastructure. We need to earn money to survive and the best and sometimes only way to make money is to work for a large corporation. We make money for the people who own and run the corporation and they give us back some of it. Next, the government takes its share, claiming it needs it for roads, schools, hospitals, pensions and security, and gives as much as it can (for example through contracts) to corporations. It does not give people a choice to keep that money, decide what to do with it themselves and get what they need through mutual aid (helping each other) like they used to. Some people work their whole lives making others rich and still end up penniless. Why? Because they didn’t work hard enough? Because they were evil in a past life?
The media tell us to consume. The remaining money we have earned, the last bones we have been thrown, we are encouraged to spend on things that make us feel rich: nice houses, cars, furniture, decorations, restaurants, two-week vacations and fancy coffee. Consumers spend their lives working for corporations and giving most of their money back to them. Instead of pursuing their dreams, they work hard in order to spend hard.
I understand people who do not do anything about it. Politics can be pretty boring. I disagree with people who say you should pay attention to politics even if you are not interested in it. You should not be compelled to pay attention to the news and what it tells you the people in power are doing. If they do not have your consent, they should not spend your money or pass laws over you. Moreover, most of the people who expect you to follow politics pay attention to the wrong things. They watch party nominations and election results and contribute to political parties and candidates who never make any real changes. But the media tell us those are the important things. That is how we can make a difference. There are no alternatives, except competing warlords or some USSR/North Korea nightmare. The system works. Stop questioning the system.
Enormous power is thus concentrated in the hands of only a few thousand people, most of whose names you and I have never heard before. A few million or so more wield power on the national level in different parts of the world with some autonomy (think the generals in Egypt) but they have mutually beneficial relationships with members of the upper ranks of the global elite. Look at what the elite do with their power. In the old days, a king would send soldiers somewhere and thousands of people would die. They had power over small parts of the world. Nowadays, power has become global, and as such the crises it leads to have gone global as well. Look at all the (supposedly unintended) consequences of all the wars the US government has been leading, all the people who have been tortured and killed, or who lost their homes and their livelihoods, and continue to do so even after the foreign militaries have left. And yet, consider who has got rich from those wars. Look at the economic carnage from the last financial crisis. Look how many people lost their jobs, homes and all their money, all around the world. And yet, the people who caused it actually made more money from it. And they tell you not to worry, because there will be an economic recovery. Do you believe them? Where is the justice?
Finally, “education” tells us what to think. I’m sure you can think of reasons why the system we live under is the best possible system. You learned it in school, and if you learned it in university like I did (political science major), you have even more reasons why it works best. We need leaders because without people making our decisions for us, society would collapse. We need rich people because without them, who would start businesses for us to work in? We need police to protect us from all the bad people around us. We need hierarchy: all societies have hierarchy, right? All other ways of living go against human nature. Don’t think too much about it: watch TV instead.
As far as I can tell, most people are neither interested in understanding the system nor willing to take the risk of fighting it. Again, I understand and I don’t judge. I just think they should understand it better than they do. If they choose to do something to change it or to change their circumstances, that is their choice and I will support them. I warn you, however, if we do not fight back, one day it will be too late.
It is hard to see how at any point in American history, whether it’s the Civil War, World War One, the Cold War or the War on Terror, it’s hard to see how these infringements on the right to dissent, infringements on basic civil liberties actually have any military value whatsoever. Does anybody think that Germany would have won World War One if Eugene Debs had been allowed to speak in the United States? Or is it really the case that we can’t allow people basic civil liberties, the right to a trial, the right to see the evidence against them, because otherwise Osama bin Laden is going to take over the world? – Eric Foner, professor at Columbia University and president of the American Historical Association
Necessity is the excuse for every infringement of human freedom. – William Pitt
Since its inception, the state has existed to make war. In this age of imagined liberty, some people expect certain rights. They believe, for instance, they have the right to say what they want on the internet without being targeted by law enforcement. But during war, the state does not permit rights. The age of imagined liberty is in fact the Age of Perpetual War. Along with fighting fabricated enemies abroad, the war has been expanded to the home front, and every dissenting group is targeted.
What Professor Foner does not point out is the actual reasons the state took away all our liberties during the various wars. Among others, dissent from the official line, especially loud, public dissent (such as that of Eugene Debs), undermines the state’s power to wage the war. The state, at all times but especially in war, desires uniformity of thought, as getting the masses to tow the official line enables the decision makers to do as they please. During the 1960s in the US, young people protested the war on Vietnam. The state cracked down on them violently for protesting, but dissent grew. What did Richard Nixon do? He declared war on his home-front detractors—not on demonstrations but on drugs. Smoking pot was common among those who opposed the war. Nixon found it politically useful to escalate violence by claiming marijuana would destroy the country, and not enough people defied him to reject his policy and humiliate him. Since Nixon’s resignation, other power-hungry people have given the War on Drugs a life of its own, with the purpose of attacking the lower classes or entire racial groups, as well as the politically unpopular.
Naturally, the US government’s attacks on dissent go back to its founding. Consider the Alien and Sedition Acts, Lincoln’s suspension of habeas corpus, Wilson’s Espionage Act and his jailing of dissenters. But while those measures established the precedent that war would mean no freedom, they were temporary measures. Today, war is not meant to end, and freedom is not meant to return.
The War on Terror has been even more destructive of liberties. The Patriot Act and the NDAA instantly bring to mind the practices of torture and indefinite detention to anyone who has been paying attention. The US government has suspended the Bill of Rights and the Geneva Conventions indefinitely. The NSA’s extensive spy network and the drones over American skies—that’s 30,000 drones by 2020—ensure the state knows if you are violating any one of its millions of statutes. The police have been militarizing since 9/11 (or before, thanks to the War on Drugs), ostensibly to combat the miniscule terrorist threat but probably to prevent any kind of insurrection. The FBI uses blatant entrapment to jail and destroy the lives of otherwise innocent people for life under trumped-up charges and spread the lie that the terrorists are everywhere. (See here, here, here, here, here, here, here, here and here, for example.) It has harassed activists its clients do not like, such as anarchists, Greenpeace, PETA and Antiwar.com. The state legitimizes its war on you by claiming it needs to defeat an enemy that exists largely in our imaginations—“the terrorists”. It has claimed complete control over you in its endless war. (See more here.)
The state’s unwitting accomplices in the legal war on freedom are the millions of Americans who never cease to yell at anyone who disagrees with what the military is doing. These people repeat the state’s line about the wars’ being about freedom and security and democracy, not realizing they have in fact got it backward. They believe the US as a nation (represented, of course, by the US government) has a divine purpose to spread these things around the world. Their job as loyal citizens is to lash out verbally (and sometimes physically – see here) at anyone who does not believe the gospel. (See this page for countless examples.)
As such, anyone who thanks soldiers for securing their freedom has it backwards. Soldiers make war possible, and war is the excuse to take away freedom. If soldiers want to fight for freedom, they can stop going to war.
If you want to understand why a coalition of states invaded Afghanistan, Iraq and Libya, why drones are bombing people in a dozen countries and why Syria and Iran will probably be next, consider, as one reason, the logic of empire. Empires are always attempting to expand. For at least 20 years now, if not 50, people have been talking about the decline of the US empire. It’s not declining. It’s still expanding. But it’s a new kind of empire.
This empire does not consist solely of the US government. It includes considerable cooperation from other states. Contrary to what some realist scholars believe, states do not represent the people they rule over (and never have), but the elite of the given territory they rule. In recent decades, however, as legal regimes have converged and states have made it easier to make and move money across borders, the elite and their corporations have gone global. National and regional governments have become, to one degree or another, subordinate to this empire.
This empire is becoming less about the US than about multinational corporations and pliant states around the world. The UN and all affiliated organisations designed for global governance, aided in part by well-meaning non-governmental organisations, have spread constitutional and legal norms. Corporations now have the law (ie. words they have written to give them the use of hired guns) on their side when they repress and displace locals, whether kicking native people off their land in far-flung regions or tossing people out of foreclosed homes all over the US.
If states do not play by the rules of empire, they become targets for regime change. While the US is integral, as I mention elsewhere, this modern empire is not only about the US military but whichever militaries the elite want to use so they can enjoy a piece of the action. Look at how they carved up Iraq’s oil reserves. They went to oil giants from the most powerful countries, not just Shell, Exxon and BP, but the China National Petroleum Corporation, Japan Petroleum Exploration Co., the Korea Gas Corp, Malaysia’s Petronas, Turkish Petroleum International and Russia’s Lukoil and Gazprom. The conquerors auctioned off the oil in Iraq those who might otherwise have had the power to block future wars. Now that they profit from war, they are likely to support it more willingly in future.
Historically, all empires have declined and fallen. There are a variety of answers as to why. Suffice to say, we have it in our power to push this empire over the cliff of history as well. But it is not inevitable. The people of the world could eventually cave in, succumbing to the boot on their faces and accepting their enslavement. Most people do not even know what is going on. It is up to those who can see the system for what it is to show others. Resist. Disobey. Fight for freedom and justice. We can have it if we want it enough.
The second edition of the Rule of Freedom: the Manifesto of the Sovereign Community has been published. The full volume is now available for free here.
“Corporate capitalists don’t want free markets. They want dependable profits, and their surest route is to crush the competition by controlling the government.” – RFK, Jr.
It is often claimed in “progressive” and “liberal” circles that we need more regulation to curb the influence and power of big business. This belief is based largely on a misconception as to the origin, purpose and result of regulations.
During the period between the end of the American Civil War and roughly the 1890s, business in the US tried to cartelise but found it could not. In general, cartels can only control a market when force is introduced. During this period, every attempt to form a cartel and raise prices led to new competitors that realised they could undercut the cartels. In response, big business began lobbying the government to pass laws “in the public interest” (as all laws are claimed to be) that would enable them to keep competitors out. It worked. (Find a large amount of research on the subject here.)
Today, regulations and other laws protecting business include corporate personhood, accounting standards, safety standards, environmental standards and intellectual property. In addition, there are subsidies (“corporate welfare”), amounting to perhaps $98b a year, selective tax breaks and contracting. In each of these categories, government and industry have made a variety of laws enabling large firms to eliminate competition. As such, they are a kind of tax taken from consumers who would pay lower prices and entrepreneurs who would be able to make their livings doing what they want. The tax is given to business owners who would be forced to lower prices or improve services in a free market. The Small Business Administration in 2005 estimated the total cost of these regulations at $1.1 trillion.
Accounting standards are widely considered necessary to prove a firm is not cooking the books. But in the absence of state regulation, concerned investors would find a way to insure against this possibility with audits. An example of the enormous and unnecessary complication of accounting standards is the Sarbanes-Oxley Act, passed in the wake of the Enron accounting scandal and failure. The Act made accounting more complicated. Implementing it costs a firm millions of dollars. Millions of dollars is pocket change for a big corporation, but prohibitively expensive for new and small businesses that could otherwise rival them. As a result, fewer businesses are created, and wealth and power are concentrated in the larger firms. We now have a complex tax code that could not be implemented by less than a team of accountants. The same is true of the legal code. The modern legal code was designed so that teams of high-priced lawyers can get away with murder and people without money see no justice.
Sarbanes-Oxley is, of course, but one law in a sea of other laws. Those who say the 2008 financial crash was caused by a lack of regulation may do well to realise there were thousands of lines of financial regulations already. They often cite the repeal of parts of the Glass-Steagal Act as the only incidence of deregulation they can think of, but this change did nothing to enable banks to make bad loans. A look at the facts indicates very clearly that regulation was the main cause of the bubble that caused the massive destruction of wealth for all but those whose ties to the state got them trillion-dollar bailouts.
Negative externalities, which seem to be the reason people beg the government to get involved in the market, are easily externalised in a statist society. The same big corporations pollute and break the law repeatedly. They are sued by the government, they pay the government, which means it gets another legal donation from an interest group, and then they are allowed to continue business as usual. The lawsuits are a bone thrown to voters and the corporations shake them off like lice. But they give the appearance that justice has been done. The corporations nonetheless retain all the benefits they get from the state in the form of legal personhood, subsidies, tax loopholes, intellectual property and regulatory barriers to competition. The state does not protect us against negative externalities.
Intellectual property enables firms to monopolise virtually anything they create. Consider the effects of IP laws in the pharmaceutical industry. Kevin Carson explains that drug patents are unnecessary to recoup expenses and develop the most effective drugs.
First of all, there has been a dramatic shift away from fundamentally new kinds of blockbuster drugs, because it’s much more cost-effective to put money into tweaking the formulas of drugs whose patents are about to expire just enough to qualify for repatenting them—so-called ‘me, too drugs.’ Second, a great deal of the basic research on which drug development is based is carried out at government expense in publicly-funded universities. Around half of the overall cost of drug R&D is taxpayer-funded. And in the United States, under the terms of legislation passed in the 1980s, the patents on drugs developed entirely at taxpayer expense are given away—free of charge—to the drug companies that produce and market them. Third, most of the actual R&D cost for developing drugs comes, not from testing the version of a drug actually marketed, but from securing patent lockdown on all the other major possible variants.
Generic drugs do not get developed, or get banned as soon as they are, because they are competition. The poor people who need them most do not get them. Intellectual property, Carson concludes, is murder.
We can divine the purpose of regulation from its results. We now have giant, multinational corporations straddling the Earth, with no government willing or able to oppose them, with the exception of a few populist, anti-imperialist holdouts. Large corporations’ alliance with the state has enabled the two to control natural resources and all manner of other markets. Consumers thus have fewer choices and higher prices than in a market freed from regulation. But freedom is always preferable to laws and regulations imposed by the state. Freedom allows economies and the arts to flourish. It means scientific advances and technological innovation. And it forces responsibility on those able to handle it while still allowing for us to help each other.
The solution to the control of markets by cartels is to free them. That would make customers the true regulators. If they decry a firm’s practices, they can stop buying from it and start buying from its competitor. If you abhor business, you are free to start and join one of the thousands of cooperatives in the world or simply produce and give to your neighbours. But demanding more regulation to prevent big-business malfeasance is akin to shooting oneself in the head to cure one’s headache.
The Rule of Freedom: The Manifesto of the Sovereign Community (the book) is now available as an ebook from Amazon here.
The book discusses all the subjects dealt with on this blog but in greater detail, with more examples and full references. Any feedback you have please write on this post or on the book’s Facebook page here. Enjoy!