Peace March, Vancouver

By Sylvia Richardson 

The economic crisis has exposed the flaws in a market base economy under capitalism that encouraged policies of privatization and deregulation to allow corporate monopolies free reign in every sector including financial sector. While the wealthiest countries debate how to bail the collapse of the financial systems, the blood line of capitalism.  Worldwide people are rejecting capitalism’s alienating tactics and coming together to transform their economies from the grassroots level.  Change requires a coherent analysis of the challenges ahead and an inclusive vision founded on a shift in values from a competitive to a collaborative culture.  This paper will address the environment as the most salient economic issue facing humanity. 

After an analysis of class in a system of capitalism, the only coherent choice is to change the structures of power to create equity through a redistribution of the wealth in society to benefit the greatest number of people.

I realize that to change a system that has been in place for 300 hundred years will not be possible overnight. Thus we must begin to construct the blue print of a society base on principles of sharing and collaboration.    I present some immediate steps we can all take toward transforming our communities and governments, to address the irrational over production and consumerism that is rampant in our society and that is destroying our water, air and food supply and threatens to create endless wars in pursuit of resources to turn into commodities for the purpose of capital accumulation. 

A market based economy is unable to satisfy the needs of society, on the contrary, to maintain the current capitalist economy, will lead to ecocide and barbarism as the essentials for life become scarce commodities. 

The Capitalist are Eating the Workers

I grew up in a war thorn country, a brutal civil war financed by US dollars. In the North good intentioned people debated what to do...Some unable to reconcile their bias against the working poor, willingly accepted the war as a natural occurrence.  Few if any would have denounced it as the result of a capitalist system that seeks to establish hegemony for the purpose of exploitation.

El Salvador received the freedom bullets sponsored by the benevolent Reagan Administration.  The US was compensated with a military government under the ARENA party, anxious to serve his new US masters and allow unfettered access to US corporations to devour every piece of El Salvador.  The result has been the implementation US currency, privatization of hydro, removal of tariffs on imports that allow US (highly subsidized) agricultural products to flood the Salvadorian market, which in turn led to the collapse of the local market on agricultural products and caused the bankruptcy of small farmers.  The neo liberalism mantra “ privatize, privatize, privatize”  and further trade agreements like CAFTA that promoted deregulation of pollution safeguards that enable mining companies to expand operation even when posing health risks to citizens, living in densely populated areas.  The increase in cancers (as people drink contaminated water, and eat food from contaminated lands), hunger and suffering as inflation and unemployment rise, increased crime and violence the result of poverty and misery, wages are so low, citizens are unable to meet their  basic necessities.  Faced with an economic crisis the response by the government, was more structural adjustments, and the introduction of the Central America Free Trade Agreement – CAFTA.  This led to further privatization of health, water, sewage, and public infrastructure (any public funded building –must be offered to private enterprise to be funded by public resources).  CAFTA has been denounced as providing foreign investors rights above those of the local population. In an interview with Latin Waves, economist Raul Moreno said “CAFTA is not a tool for trade but an instrument of hegemony, a political tool that enables corporations to act with impunity and above the law” CAFTA investor’s rights protection are intended to subjugate any laws a country may have to protect against pollution or any barriers to safeguard the local market against foreign monopolies’ ownership.  The CAFTA primary focus has been remove regulations on three areas:

I.      Foreign investment – to allow monopolies

II.      Intellectual property – which has enable bio piracy 

III.      Removal of barriers to enable privatization in public service investment and infrastructure.

Raul Moreno, Economist (2009) interviewed on Latin Waves.

El Salvador is not an anomaly; it’s the norm in a capitalist economic system.  The primary goal is profits, the lives of people and other sentient beings are irrelevant.  The number of people killed in Iraq (to secure US corporations’ strong hold of Iraqis’ oil) no longer makes headlines, their lives are the casualties of business, the ugly cost of generating profits are referred to as “externalities” and need not concern anyone.

“A quarter of the world’s armed conflicts of recent years have involved a struggle for natural resources, more than 5 million people died as a result of these conflicts in the 1990’s” William (2007;pg. 166)

The Trickle Down Effects

Most people have been raised on myths that the capitalist class creates wealth, that they keep most of it for themselves but that it trickles down to the poor and improves their condition.   In El Salvador, Haiti (the poorest country in Latin America, in spite of having increasing number of millionaires per capita) the reality is one of growing inequality. Here are some facts from a 1998 study by the United Nations:

1.      “The richest fifth of the world’s people consume 86 percent of all products

2.      While the poorest fifth purchases 1.3 percent—everything from meat to paper and automobiles.

3.      The three richest persons in the world have assets greater than the combined GDP’s of the 48 poorest nations (note that this is a comparison of wealth to income). So if the three richest persons sold their assets, they could buy the total output of these 48 countries.

4.      If the poorest 47 percent of the world’s people (about 2.5 billion persons) pooled their yearly incomes, they could just purchase the assets of the world’s wealthiest 225 individuals.

5.      A tax of a 4 percent levied on the wealth of these same 225 wealthy people would pay for basic and adequate health care, food, clean water, and safe sewers for every person on earth."

Class Analysis: Who Benefits and Who Pays?

            In a Capitalist economy, production and distribution are organized around markets, it involves the buying and selling of commodities.  We are led to believe that the market place is impartial and not controlled by either the worker or the employer.  And that the profits are the outcome of the output (produced goods) in “the marketplace” and not the result of exploitation of the workers.  Marx’s labour theory of value MCCM, helps us understand how the profits (surplus value) is produced M =Capital money used to purchase, constant capital-- equipment / means of production (C), and variable capital / labour power (C), Marx is clear it is the workers labour that transforms the raw materials into Commodities (M) that then are sold for more than the capitalist paid for the combined resources and labour power, thus generating a surplus value.   It also helps us demystify the capitalist’s engine of profits.   Marx argued that markets represented capitalism’s appearances but not its ultimate reality. Underneath the market is the reality of exploitation of labour by capital.  The profits are the surplus labour extracted from the workers by their employers (Yates: pg 173; 2003)

We live in a class system; the capitalist class own the means of production and by means of privatization has excluded the vast majority of workers from accessing the means by which to produce what they need to survive.  By creating a division of workers, those with access to work, and those who are excluded, it has created a race to the bottom where workers compete by devaluing their labour.  In turn, workers who are granted the privilege to participate in the selling of their work in exchange for money to purchase the basic needs are exploited and in constant fear of losing their means of subsistence.   Thus they work harder, and by their increased efficiencies increased the number of commodities now available. 

This is a problem on various levels. First, on an economic level it creates over production; since the workers, also happens to be the consumers, the hunger wages that capitalists imposed in order to increase their profits, leave the worker unable to consume sufficient commodities to justify further production.  When the workers are not able to absorb the surplus of commodities produced, the prices are lowered. And the wages of workers are also reduced to cover the capitalists’ loss of revenue.   This creates a vicious cycle, where the Capitalists must continue to maximize profits, not to be over taken by other capitalists, and push the workers to continue to produce more each time.   According to economist Michael Yates, the innate competition and greed in the Capitalist model drives the expansionist nature of the system.  Thus the system is engulf in a spiral trend of irrational over production that cheapens the goods produced, and causes the wages of workers to be reduced as the value of the goods they produced continues to be devalued.   Yates (2003)  

Also, the irrational over production of commodities, has meant increasing desecration of the environment, water contamination, and food scarcity in poor communities; it has yield immense capital and power for the capitalist class.  But it has meant increasing suffering for the rest of society worldwide.  Capitalism is a global problem, and requires a paradigm shift from an economic system that rules the world to an economic system that exists within the constructs of civil society. 

The Wind Knows no Borders: Capitalism is Destroying the World

The impacts of climate change have been felt worldwide; In 2003 Europe  The Institute pointed out that “heat waves are silent killers—coroner’s reports rarely list heat as a cause of death” and the institute warns that because of this policy-makers and the public haven’t yet grasped the full extent of what happened that summer and what risks we face in the future.   Crops were destroyed, wheat harvests were down 20 percent and over 650,000 hectares of forest were destroyed in fires.  The loss of lush forests, no longer able to absorb the carbon dioxide led to higher emission of carbon dioxide across the continent. Williams, J. (2007) 50 Facts That Should Change the World; pg. 109 experienced its hottest summer ever, according to the Earth Policy Institute more than 52000 people died.

Many countries in the south are dying of preventable diseases as access to clean water and medicines becomes the right of select few.   The impact of trade agreements in Latin America has had devastating effects as large corporations are granted unfettered access to their water sources, fertile soils, mineral resources and labour power.  The harmful effects from drinking contaminated water and illnesses related are well documented.

The World Health Organization (WHO) estimates that climate change leads to more than 150,000 deaths and 5 million illnesses—and this could double by 2030. Williams, J. (2007) 50 Facts That Should Change the World; pg 110

 http://www.youtube.com/watch?v=R0Ku7QxYZpQ

The Costs of Ignoring Global Warming:

For investors and market economics proponents the financial collapse of global capitalism is a crisis.  But for the working class the crisis started long ago with the erosion of civil rights and protections against corporate greed.  The increased erosion of fertile lands, pollution of water resources and mass migration of people has meant the death of cultures, languages and community.  It also has a financial and social cost for people everywhere.

Pandemics

Climate change leads to higher temperatures, which means the readily spread of diseases, as bacteria thrives in warm climate. And can lead to the spread of fatal diseases like Dengue and Malaria. Even in Italy, a country that was declared malaria free in 1970 has now reported a modest appearance of the illness.

Increase Demand on Health Services

Many of these diseases can be prevented by providing access to clean water and by preventative medicine, however this comes at a cost, and many poor countries already struggle to provide health care and are not likely to be able to cope with a significant increase on their demand.  “It is estimated that global warming could cause as many as a million additional deaths from malaria each year”. Williams (2007)

Hunger and Scarcity

As areas become transformed by climate change, it threatens the ability of poor countries to produce food for their population.  Changes in temperature make some crops simply impossible to cultivate and, or require increasing amount of water (also in scarce supply) due to water exports from poor countries to wealthy nations. Of course, some countries may experience an increase in agricultural production –a country like Siberia may suddenly become able to grow crops—but the British Medical Journal anticipates a “negative impact” on agricultural production.  Unable to produce staple foods and without the funds to change to other kinds of farming, it will be the poorest communities in the world who will suffer the most.  However, even a rich country like France could not stop the death of 52000 of its citizens!

We are at the edge of the abyss, our glaciers are melting, terrible earthquakes, floods, heat waves, ice storm, serve as reminders that we are approaching a point of no return.  The harm from environmental catastrophes is exacerbated by rapacious neo liberalism policies of privatization, that profit from the misery of poor communities (I called then “poor communities” because in my opinion wealthy capitalists can only exist at the expense of the poor, thus the poor exist in every country developed and underdeveloped).  Once people are displaced by foreclosures (2009 financial crisis) or floods (New Orleans 2005), the capitalist vultures swoop in to devour the carcass of what remains of our communities.

Eco Socialism or Barbarism

http://www.youtube.com/watch?v=R0Ku7QxYZpQ (Los Nadies) Galeano

According to the World Health Organization (WHO)  “Every day, one in five of the world’s population – some 800 million people – go hungry. Two billion people suffer from chronic malnutrition.  Eighteen million die each year from hunger related diseases.  The World Health Organization (WHO) says that hunger and malnutrition are among the most serious problems facing the world’s poor. And yet this is not caused by food shortages.” Williams (2007 pg. 135)

 The poet and acclaim author Eduardo Galeano, describes the poor and powerless as “los Nadies” (The nobodies, that exist without being, who own nothing and thus are worth nothing).  This alienating capacity in the capitalist economic system, that assigns value according to our ability to consume, denies people their human dignity.  Their moribund faces occasionally make it to the pages of corporate owned newspapers. But most victims of hunger go unnoticed.  Hunger affects the poor, the powerless!

The recent invasion of Iraq, Haiti and Darfour are examples of wars to secure resources.  “A quarter of the world’s armed conflicts of recent years have involved a struggle for natural resources, more than 5 million people died as a result of these conflicts in the 1990’s” William (2007;pg. 166) In Latin America is said that rich deposits of natural resources is the curse of a nation.  Although, natural resources can contribute to a country’s wealth as it has of late in Venezuela under president’s Hugo Chavez, who uses the wealth produced from the exports of oil to improve the health, education and living conditions of its citizens.  However, this has not proven to be the case for most countries. In Iraq, Afghanistan, El Salvador, it has led to ecological destruction by military invasion in pursuit of capital expansion opportunities.  Thus, the capitalist system must be replaced by a more humane and egalitarian economic systems. One that is based on rational production, taking into account the needs of people and other sentient beings who share the planet with us and whose survival is interconnected with our own.  

Reclaiming our Political and Personal Power

I believe that in every society, the true power lies in the broad masses of people. The principle task of anyone who wants to realize change is to first of all raise the people’s consciousness about a more ethical way of living, by creating a vision that creates a cultural shift in values. Then, create the socio and economic structures that support a more egalitarian system.  In Latin America, this movement is alive and growing.  The goal is a society that is inclusive, respectful of diversity, and founded on principles of community and collaboration.  

The economic crisis has exposed the ugly face of greed and exploitation of capitalism.  As I am writing the G20 countries (the wealthiest 20 countries in the world) are meeting in England, outside, the uninvited masses protest their policies of exploitation.  Mass demonstrations against the abuses of the capitalist class, has two effects:

1.  It unites people and creates solidarity (focus on common ground) that transcends gender, racial discrimination or religion. 

2.  Leads to organized resistance; this only the beginning, is not enough to protest we must also offer alternatives.

Economic Alternative Policies

I think to create mass support for change we need to present a vision that is inclusive, based on values of sharing, that is self determined, autonomous and based on sustainable principles. If we are to change our society we must start by creating a culture that rejects the rapacity of capitalism as a “natural” system that has brought us democracy (the greatest myth).  We begin by reclaiming our personal power and uniting with others in an effort to create an economic model based on ethical values and centred on ethical principals of environmental stewardship that allow us to appreciate nature not as a commodity but a living organism upon which our very survival is dependent.

In addition we must have policies to transition our current system in order to reduce the gap in inequality that has increased over the past 30 years.   Some immediate changes we can implement by organizing our communities and pressuring government:

1.      Stop privatization of essential services: Health, Education, Sewage, Water, Hydro and Gas and Public Transit.

2.      Terminate NAFTA, CAFTA and nationalized oil and gas resources while we transition to renewal sources of energy such as hydro, wind and solar power…etc.

3.      Restored regulation to protect water, air and land from pollution contamination of industry, and increase regulation to protect citizens from exposure to harmful chemicals.

4.      Implement a Living Wage campaign that allows people to fully participate in society, for example an extra allowance for transportation, fitness and sufficient funds to provide a balanced diet.

5.      Invest in structural development: affordable housing, public transit, parks and recreational facilities.

6.      Reduce irrational over production through a reduction in the work week without loss of benefits and wages and a campaign to reduce consumption.

7.      Increase citizen participation by implementing policies to ensure journalism ethical conduct, and objective reporting; for example, break up media monopolies to open up access to a more diverse exchange of ideas and discourse.

8.      Make political appointments subject to recall if they are found to be acting against the public interest by pursuing privatization of essential services.

9.      Make education accessible to all.  Evidence shows that countries with highly educated population have overall higher living standards.

10. Nationalize the banks to end financial speculation and predatory practices, for example the subprime mortgages should have never be allowed.  And reject Harper’s move to force third world countries to adopt foreign financial ownership of their national banks.

11. Nationalized all wind and solar power energy production, and invest in training to help workers transition from a fossil fuel economy to a sustainable renewable energy economy.

12.  Change immigration laws to end two tier immigration statuses and ensure rights for all workers. 

13.   Increase the tax rate paid by the top 1 percent by 4% and eliminate the tax levy on those earning less than 30,000.

14. Implement a value added resources manufacturing policy and end exports of raw logs in BC.

15.  Reverse licences already granted for rivers and water streams in BC for power project and remove Bill 30 to enable BC hydro to continue to produce power at a low rate.

Conclusion

A transitional change has already begun; in many countries people have been creating alternative economic models at the grassroots level.  If we are to stop the ecological destruction eminent in our present practices of irrational over production that treats our environment as an unlimited garbage receptacle with unlimited resources to be exploited.  And instead, recognize we live in a finite planet and our survival depends on the protection of life’s essentials: water, air, food and creating social structures to allow our cultural evolution from the present consumption culture into a truly democratic society.  We must cultivate a culture that is centred on principles of sharing, collaboration and realizing that our actions have long term impact in the lives of others worldwide.  We will succeed only when we aims are guided by ethical values, where respect for diversity of ideas, faith and cultural norms is part of the richness that makes us thrive not something to be fear. And the access to essentials like water, food and air is available to all, by principles of mutual respect and acknowledgment of every sentient being right to live in coexistence.   This movement to create a new world, with fairness and justice for all, already exist all we need to do is join in!

Bibliography

Michael Y. (2003) Naming the System

Williams J. (2007) 50 Facts That Should Change the World

Eduardo Galeano “Los Nadies” (The Nobodies) photographs

http://www.youtube.com/watch?v=R0Ku7QxYZpQ

Albert M. (2003) Parecon  Life After Capitalism, Participatory Economics

Raul Moreno, Interview with Latin Waves (CAFTA) Central America Free Trade Agreement, regarding the economic crisis root causes and solutions (Feb. 2009).