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WORLD AUSTERITY REPORT<br />
6
World Austerity Report:<br />
From the Desk of the Editors<br />
A BRIEF MISSION STATEMENT<br />
“Plenty is at our doorstep, but a generous use of it languishes in<br />
the very sight of the supply.” – Franklin D. Roosevelt, First<br />
Inaugural, 1933<br />
Those words are just as relevant today as they were in March of 1933.<br />
Unfortunately, today there is no FDR, no Harry Hopkins, no Henry Wallace,<br />
and worst of all, there is no New Deal. If you are reading this in the United<br />
States, then you are, indeed, standing amongst what little remains of the New<br />
Deal state. This is the state in which the middle class became the majority of<br />
the population. The state which checkmated Fascism and Communism. It put<br />
millions of Americans to work in a matter of hours and brought electricity to<br />
the poorest parts of the US. The New Deal also created the infrastructure which<br />
made possible an educated population capable of putting a human on the Moon<br />
and unlocking the secrets of the atom.<br />
The U.S. Constitution -not once, but twice- demands a promotion of the General<br />
Welfare. The General Welfare includes everyone; be it the college student, the<br />
farmer, the business owner, the janitor, the mechanic, the teacher...everyone.<br />
Without a doubt, the New Deal promoted the General Welfare. And today we<br />
can do even better.<br />
“...in every republic there are two parties, that of the nobles and that<br />
of the people; and all the laws favorable to liberty result from the<br />
opposition of these parties to each other.” – Niccolo Machiavelli,<br />
Discourses on Titus Livius, 1517<br />
Today, the plenty that is at our doorstep is currently being misused and wasted by<br />
those whom Roosevelt characterized as the “the rulers of the exchange of mankind’s<br />
goods” (i.e. Wall Street) and their “speculation with other people’s money.” In the 4 th<br />
Century BC the Greek philosopher Plato categorized this same class of rulers<br />
as The Few. In the Renaissance they were known as The Nobility. The Russians in<br />
the 1990’s used the term Oligarch. In the 1930’s many referred to them as Private<br />
Economic Interests. In 1935, one pro-New Deal <strong>report</strong>er, Marquis Childs, referred<br />
to the aristocrats who hated Roosevelt as the “Two-percent.” And of course, today<br />
many refer to them as the 1%.
Plague and pestilence and plunder and pollution, the hazards of nature<br />
and the hunger of children, are the foes of every nation. – John F.<br />
Kennedy addressing the United Nations, 1963<br />
The greatest danger to the American public is the lowering of our standard of living.<br />
Over the last 45 years, since the defeat of the labor movement in 1968, our standard<br />
of living has been lowered by roughly two-thirds. And in its place, the nobility have<br />
triumphed. Simply put: the general welfare has been ignored.<br />
Our fight is not against our neighbors, or the church, or the state, or ourselves. The<br />
enemies of the modern <strong>world</strong> are disease, poverty, imperialism, war, genocide,<br />
nihilism, <strong>austerity</strong>, and the Oligarchical bankers who promote it. The <strong>report</strong>s and<br />
articles found in the W.A.R. are based largely on the AMERICAN SYSTEM OF<br />
POLITICAL ECONOMY: a strategy to curb the assault on the general welfare by<br />
promoting:<br />
1) A PROTECTIVE TARIFF to stop offshore slave-labor goods (i.e. Walmart) from<br />
not only under-cutting our own industry and manufacturing, but also driving down<br />
our wages and breaking unions.<br />
2) A NATIONAL BANK to foster and promote industry and manufacturing, as well<br />
as our national laboratories, biomedical research, and universities.<br />
3) INFRASTRUCTURE PROJECTS, even if they are only developed in one state.<br />
Today the term infrastructure would apply to the implementation and full<br />
maintenance of Medicare-for-All (Single-Payer Healthcare), Social Security, public<br />
education, public housing, high-speed Magnetic Rail, irrigation systems, bridges,<br />
anything that increases the overall health and productivity of the population.<br />
This is not an ideology. This is a strategy to uplift the nation, and everyone in<br />
it. In short, the utopias that we imagine for our <strong>world</strong> can only be realized in an<br />
atmosphere of prosperity, not <strong>austerity</strong>.
CONTENTS<br />
HISTORY<br />
2<br />
Tracing the Democratic Party’s Pivot to Wall<br />
Street<br />
Chris Brennan<br />
EXCLUSIVE REPORT<br />
8<br />
Trans Pacific Partnership: Corporate Rule of<br />
America<br />
Polly Cooke Hughes<br />
AUSTERITY NEWS<br />
12<br />
German Economy: A Process of Brutal<br />
Exploitation<br />
Dr. Webster G. Tarpley<br />
13<br />
Agenda 21: Eerie Observations from the Erie<br />
Canal<br />
Stephen Boss<br />
INTERNATIONAL<br />
15<br />
Ukraine’s Fascist Regime: A Short History &<br />
the Science of Color Revolutions<br />
Brandon Turbeville<br />
TAKE ACTION<br />
19<br />
It’s Easier than You Think: Contacting Your<br />
Legislators<br />
Polly Cooke Hughes
LETTERS TO THE CHEF<br />
22<br />
Recipe for Economic Development &<br />
American Revolution: 21 st Century Style<br />
Alain Lareau<br />
POLICY & PROGRAM<br />
26<br />
1% Wall Street Sales Tax: Unearned Income<br />
Must Pay!<br />
Brandon Turbeville<br />
EDUCATION<br />
35<br />
An Introduction to “Education Reform”<br />
Polly Cooke Hughes<br />
38<br />
New York City: Propaganda Campaign Spends<br />
Millions to Save Charters<br />
Polly Cooke Hughes<br />
May 2014 Issue<br />
40<br />
A Sneak Peek Into Next Month’s Issue
HISTORY<br />
Much of human history can be understood as a war of ideas. In order<br />
to understand the complexities of current economics and political<br />
formations it is essential to first grasp the historical backdrop.
Tracing the Democratic Party’s<br />
Pivot to Wall Street<br />
CHRIS BRENNAN<br />
he egalitarian Left is long<br />
overdue for soul searching. For<br />
decades the Democratic Party,<br />
ostensibly the instrument of progressive<br />
policy, has informally renounced<br />
its New Deal roots. Consequently, the<br />
middle class, long held as the linchpin<br />
America’s democratic system, has been<br />
dramatically attenuated from its peak<br />
in the post-New Deal state of the 1940s.<br />
In this reorientation of America, the<br />
physical economy — America’s highly<br />
skilled labor force, manufacturing capacity,<br />
and infrastructure — has languished<br />
to a near moribund state while<br />
a veritable financial casino economy<br />
has emerged transcendent.<br />
Although this phenomenon cannot be<br />
entirely ascribed to any single political<br />
leader or movement, its center of<br />
gravity is undoubtedly Wall Street.<br />
The Democratic Party — imbibing on<br />
years of “free-market” orthodoxy and<br />
neoliberalism, has rejected its erstwhile<br />
commitment to economic progress<br />
for the average person. Instead, it has<br />
enabled the financial interests of the<br />
owning and possessing class to enrich<br />
itself at the expense of the vast majority<br />
of Americans, leading to the glaring<br />
income disparities that have become<br />
a feature of current public discourse.<br />
For nearly all the twentieth century there<br />
was a dynamic left in the United States<br />
grounded in the belief that unrestrained<br />
capitalism generated unacceptable social<br />
costs. That left crested in influence between<br />
1935 and 1945, when it anchored<br />
a coalition centered in the labor movement,<br />
most significantly within the<br />
Congress of Industrial Organizations<br />
(CIO). It was a prominent voice in the<br />
Democratic Party of the era, and at the<br />
federal level its high point may have come<br />
in 1944, when FDR pro-pounded what<br />
he called “a second Bill of Rights.” Among<br />
these rights, Roosevelt proclaimed, were<br />
the right to a “useful and remunerative<br />
job,” “adequate medical care,” and<br />
“adequate protection from the economic<br />
fears of old age, sickness, accident, and<br />
unemployment.<br />
CARTER: AUSTERITY<br />
‘DEMOCRAT’<br />
Reed traces the roots of the ideological<br />
shift to a Democratic defensive posture<br />
in the face of the triumphant conservative<br />
“Reagan Revolution” of the 1980s,<br />
noting that the “Democratic…center has<br />
moved steadily rightward since Ronald<br />
or slow the rightward tide. At the same<br />
time, business interests, in concert with<br />
the Republican right and supported by an<br />
emerging wing of neoliberal Democrats,<br />
set out to roll back as many as possible of<br />
the social protections and regulations the<br />
left had won.<br />
As this defensiveness overtook leftist interest<br />
groups, institutions, and opinion<br />
leaders, it increasingly came to define leftwing<br />
journalistic commentary and criticism.<br />
New editorial voices — for example,<br />
The American Prospect — emerged to articulate<br />
the views of an intellectual left<br />
that defined itself as liberal rather than<br />
radical.<br />
Although not without merit, this assessment<br />
falls short in identifying the true<br />
origins of the Democratic Party’s rightward<br />
economic reorientation. Before<br />
the advent of Reaganism, the fore-most<br />
tragedy to progressivism was the presidency<br />
of Jimmy Carter. This “tragedy”<br />
of the Carter tenure, as described by<br />
one journalist, Haynes Johnson in his<br />
WORLD AUSTERITY REPORT<br />
This fundamental reality was recently<br />
Reagan’s presidency.” He posits:<br />
In the Absence of Power, has become<br />
explored in Harpers by political scientist<br />
Adolph Reed Jr. in perhaps one<br />
of the most incisive — though not perfect<br />
— much needed critiques of Left<br />
politics in recent times. Reed observes:<br />
[D]uring the 1980s and early 1990s,<br />
fears of a relentless Republican juggernaut<br />
pressured those left of center to take<br />
a defensive stance, focusing on the immediate<br />
goal of electing Democrats to stem<br />
eclipsed by the ensuing Reagan presidency.<br />
Reaganism was doubtless a resounding<br />
defeat for the Left, but the<br />
coming of Carter, a watershed event,<br />
set the Democratic Party on a rightward<br />
economic trajectory from which it has<br />
2
Jimmy Carter, April, 1980<br />
39th US President: 1977-1981<br />
yet to alter in any meaningful way.<br />
Nixon years. (Kaufman ibid.) Not sur-<br />
Surprisingly, any mention of Carter is<br />
prisingly, Carter’s characteristic “fuzzi-<br />
conspicuously absent from Reed’s anal-<br />
ness” was repeatedly targeted by his<br />
ysis. This glaring omission de-tracts<br />
Republican counterpart Gerald Ford.<br />
from Reed’s overall analysis because<br />
it is from the presidency of Carter that<br />
This studied vagueness inveigled the<br />
the Democratic Party repudiates its his-<br />
American people and allowed the even-<br />
toric relationship to labor and its com-<br />
tual con-tent of Carter’s economic pro-<br />
mitment to deliver economic progress<br />
gram — brutal <strong>austerity</strong> — to be im-<br />
to the average person.<br />
posed. But the American people were<br />
not fooled once his economic policy<br />
In fact, rather than progress the quint-<br />
was underway. As Stuart Eizenstat his<br />
essential feature of the Carter regime<br />
Chief Domes-tic Policy Advisor pointed<br />
are the limits to progress — the need<br />
out to Carter, his economic policy was<br />
of the American people to sacrifice and<br />
widely regarded “solely as <strong>austerity</strong>,<br />
limit the scope of their vision for the<br />
pain, and sacrifice.” Unsurprisingly,<br />
future — the need to adopt a mentality<br />
Carter’s approval rating dropped pre-<br />
of scarcity. In Civic Religion and the<br />
the present,’ which traditionally has<br />
cipitously to record lows as a result of<br />
Presidency, Pierre and Linder conclude<br />
been an essential foundation of leftist<br />
his <strong>austerity</strong> policies.<br />
that he “told the American people what<br />
thought and practice. ‘Instead of cham-<br />
they did not want to hear — that they<br />
pioning a radical idea of a new society,’<br />
As eminent historian Arthur<br />
would have to renounce their profli-<br />
Jacoby observes in The End of Utopia,<br />
Schlesinger Jr., an aide to President<br />
gate lifestyles.” (Kaufman 1) Tellingly,<br />
‘the left ineluctably retreats to smaller<br />
Kennedy, posited, Carter was a<br />
WORLD AUSTERITY REPORT<br />
in Carter’s 1977 inaugural address he<br />
asserts that “we have learned that ‘more’<br />
is not necessarily better, that even our<br />
great nation has its recognized limits.”<br />
Carter’s ideological outlook could not<br />
be spelled out more explicitly.<br />
This position has been adopted as a<br />
central tenet of Democratic Party orthodoxy,<br />
and it has yet to be repudiated<br />
hitherto. Indeed, though not tracing<br />
ideas, seeking to expand the options<br />
within the existing society.’ ”<br />
Carter, similar to President Obama,<br />
entered the national political scene as<br />
a candidate who presented himself in<br />
studiously vague terms. Ideologically,<br />
he was difficult to pinpoint. Rather<br />
than concrete political program and<br />
measures, the crux of what Carter offered<br />
was himself alone. Kaufman ob-<br />
Democrat in name only; his actions<br />
were more characteristically<br />
Republican. He observes:<br />
“[T]he reason for Carter’s horrible failure<br />
in economic policy is plain enough. He is<br />
not a Democrat — at least in anything<br />
more recent than the Grover Cleveland<br />
sense of the word.”<br />
Grover Cleveland, it must be remem-<br />
this reality to Carter, Reed does touch<br />
serves, “Wherever he travelled, Carter<br />
bered, was an <strong>austerity</strong> Democratic who<br />
upon the pessimistic zero growth<br />
remained intentionally vague on the<br />
presided over an economic depression<br />
mentality adopted by the Democratic<br />
issues.” (Kaufman 12) Instead of con-<br />
in the late 19th century. According to<br />
Party, noting that the Democratic<br />
crete programmatic proposals, Carter<br />
Schlesinger:<br />
“shift requires, as the historian Russell<br />
ran on values, seeking to opportunis-<br />
Jacoby notes, giving up ‘a belief that the<br />
tically capitalize on the distrust of<br />
[Carter is] an alleged Democrat [who]<br />
future could fundamentally surpass<br />
Washington garnered by the corrupt<br />
won the presidency with demagogic<br />
3
Paul Adolf Volker, Federal Reserve Chair<br />
1979-1987.<br />
Education: London School of Economics<br />
Photo: Matt Phillips, Associated Press<br />
attacks on the horrible federal bureau-<br />
Carter nominated Paul A. Volcker as<br />
cracy and as president made clear in<br />
head of the Federal Re-serve. Volcker’s<br />
the most explicit way his rejection of…<br />
paradoxical remedy for purging the<br />
affirmative government…. But what<br />
economic system of inflation was to<br />
voters repudiated in 1980 [Carter’s<br />
inflict an economic depression. Volcker<br />
defeat] was not liberalism but the mis-<br />
proceeded to gut the US’s industrial<br />
erable result of the conservative eco-<br />
base with astronomical interest rate<br />
nomic policies of the last half dozen<br />
increases, with a prime rate as high as<br />
years. (Fink)<br />
22%, constricting productive activity.<br />
DEINDUSTRIALIZATION AND<br />
DISASTER<br />
Dr. Webster G. Tarpley usefully describes<br />
this in Surviving the Cataclysm:<br />
The Carter years not only saw a dramatic<br />
reduction of the Democratic<br />
Party’s efforts at social reform such<br />
as the war on poverty and programs<br />
for the working poor, but it also began<br />
the process of deindustrialization of<br />
the American economy. Carter, who<br />
presented himself as being above the<br />
fray of Washington politics, torpedoed<br />
a number of water and dam projects,<br />
which he considered to be government<br />
pork barrel profligacy. Sparking the ire<br />
of the congressional Democrats, the<br />
loss of these projects represented a blow<br />
to much needed jobs. Tellingly, Carter<br />
also ushered in the tendency towards<br />
deregulation of key industries such as<br />
oil and gas, airlines, banking, trucking,<br />
and public utilities — also a later<br />
hallmark of the Reagan regime.<br />
as one of the most crucial issues, reversed<br />
his policy, deciding instead<br />
that addressing inflation was of paramount<br />
importance. Trade unionists<br />
of the AFL-CIO, who were up until<br />
this point an integral part of the<br />
Democratic electoral base, anticipated<br />
Carter would propose a public works<br />
program of $30 billion to reduce unemployment.<br />
Carter’s refusal to enact the<br />
program, inter alia, produced resentment<br />
among industrial trade unionists.<br />
Kaufman comments that labor was in<br />
“open rebellion” against Carter. The<br />
AFL-CIO termed Carter’s new plan<br />
as “a retreat from the goals we understand<br />
President-elect Carter to have set<br />
during last year’s election campaign.”<br />
(Kaufman 29) Similarly, Democratic<br />
mayors, who needed an infusion of aid<br />
Volcker was a monetarist and “financial<br />
institutions conservative,” meaning that<br />
he cared little for the economic fate of the<br />
American people as a whole, but only reacted<br />
to threats to the big banks and to the<br />
Federal Reserve System…Volcker pushed<br />
US interest rates inexorably higher. In<br />
March of 1980, Carter and Volcker<br />
added a patchwork of credit controls, and<br />
Carter attacked the population for using<br />
credit cards too much. By April 1980, the<br />
prime rate charged by US money center<br />
banks to their most reputable customers<br />
had reached 20%. In the second quarter<br />
of 1980, the government’s estimate of the<br />
real Gross National Product was plummeting<br />
at a yearly rate of 10%; it was the<br />
sharpest single quarter drop in postwar<br />
US history. (Congressman Henry Reuss<br />
later complained that “ for the first time<br />
in history, a Democratic President put<br />
the economy into recession.”)<br />
WORLD AUSTERITY REPORT<br />
Most notably, the systematic deindustrialization<br />
of the United States began<br />
under Carter, represented the loss of<br />
innumerable blue-collar jobs and the<br />
US’s preeminent productive capacity,<br />
a national asset. Carter, who originally<br />
claimed to regard unemployment<br />
for their cities, were shunned. These<br />
were the groups that elected him in the<br />
first place.<br />
More than any other event, the process<br />
of deindustrialization, and its corollary<br />
the defeat of labor, accelerated when<br />
These were, as German Chancellor<br />
Helmut Schmidt and others complained,<br />
the “highest real interest rates since the<br />
birth of Christ.” Volcker’s 21.5% prime<br />
rate vastly accelerated the deindustrialization<br />
on the battered US economy; it<br />
4
Carrie Furnaces.<br />
Rankin, Pennsylvania. Idle since 1982.<br />
Photo: Caters News Agency<br />
WORLD AUSTERITY REPORT<br />
was compared by some to a Soviet thermonuclear<br />
attack. As a result of the unprecedented<br />
interest rates, the traditional<br />
industrial areas of the Great Lakes and<br />
the North Atlantic seaboard collapsed into<br />
a rust bowl. Steel mills, chemical plants,<br />
plus small and medium concerns that had<br />
been weakened by the oil shocks now had<br />
no strength left, and succumbed. (Tarpley<br />
279-282)<br />
The ravages of Volcker set the stage for<br />
“the Great U-Turn,” as termed by the research<br />
team of Harrison and Bluestone:<br />
the repudiation of the implicit social<br />
contract that governed labor relations<br />
since the postwar epoch. Harrison and<br />
Bluestone’s conclusions are that “the 4.5<br />
million people thrown on the streets<br />
as unemployed during the 1979-1982<br />
interval, even as US GNP fell by 4.9%<br />
in the last quarter of 1981 and by an<br />
additional 5.5% in the first quarter of<br />
1982, were the precondition for historic<br />
defeats of the labor movement whose<br />
effects are still being suffered.”<br />
Following Carter’s 1980 defeat, the<br />
Democratic Party never reaffirmed<br />
its relationship with labor. Walter<br />
Mondale, running in the presidential<br />
election of 1984, continued shunning<br />
blue-collar workers and unions,<br />
regarding them as a special interest<br />
group. Blue collar workers, repulsed by<br />
the <strong>austerity</strong>, economic calamity, and<br />
Malthusian zero growth grotesqueness<br />
of Carter, and subsequently gravitated<br />
to Reagan, who seemingly brimmed<br />
with optimism. If the Democratic Party<br />
did not regard blue collar workers as<br />
a worthwhile consideration, then the<br />
GOP was more than willing to absorb<br />
Gary, Indiana<br />
Photo: Elvin Wyly (2010)<br />
them into their electorate. These are<br />
the so-called “Reagan Democrats,”<br />
those lost to the follies of Carter. These<br />
working class whites continue to elude<br />
Democrats today.<br />
It must be remembered that the ensuing<br />
Reagan presidency proceeded to<br />
preside over perhaps one of the greatest<br />
explosions of usury and speculation<br />
ever witnessed with the advent of the<br />
hostile takeover and leveraged buyout<br />
bubble. It accelerates the deindustrialization<br />
and contraction of labor relations<br />
in America as well.<br />
Reed’s recent essay correctly laments<br />
the neoliberalism of the Clinton years<br />
and the Left’s subsequent complacent<br />
glorification of Clinton, which,<br />
in truth, was an extension of Reagan’s<br />
terms of political practice and debate.<br />
Some of his measures included effectively<br />
ending welfare, thereby pushing<br />
many into abject poverty; pushing<br />
the adoption of NAFTA to the detriment<br />
of labor and many congressional<br />
Democrats; and presiding over privatizations,<br />
and deregulation of Wall<br />
Street, all of which reverberate today.<br />
With the understanding that Carter<br />
initiated the Democratic rightward<br />
turn and the abandonment of the New<br />
Deal, that these neoliberal excesses of<br />
Clinton are not possible without Carter.<br />
Consequently, the current Obama<br />
regime which has paralyzed a multitude<br />
of meaningful progressive initiatives<br />
and transformative economic<br />
recovery is not possible without Carter<br />
either.<br />
5
As the debate over the future of progressive<br />
politics continues, stemmed by<br />
Reed’s recent analysis, progressives will<br />
do well to remember the lesson of the<br />
catastrophic Jimmy Carter presidency:<br />
a Democratic Party that is serious about<br />
progressive politics is not viable without<br />
a robust relationship to the labor<br />
movement, bread and butter economic<br />
issues, the rejection of a Malthusian<br />
zero growth mentality and an activist<br />
government. There is no future without<br />
repudiating the follies of Carter and<br />
recreating the New Deal coalition.<br />
Sources<br />
Reed Jr., Adolph, “Nothing Left: The Long,<br />
Slow Surrender of American Liberals,”<br />
Harper’s Magazine; March 2014<br />
Kaufman, Burton I., “The Presidency of<br />
James Earl Carter Jr.” University Press of<br />
Kansas, 1993<br />
Tarpley, Webster G. “Obama the<br />
Postmodern Coup: The Making of a<br />
Manchurian Candidate,” Progress Press,<br />
2008<br />
Tarpley, Webster G. ““Surviving the<br />
Cataclysm: Your Guide to the Greatest<br />
Financial Crisis in Human History,” 2nd<br />
Edition; Progressive Press, 2009<br />
Fink, Gary M. “The Carter Presidency:<br />
Policy Choices in the Post-New Deal Era,”<br />
University Press of Kansas, 1998<br />
WORLD AUSTERITY REPORT<br />
6
EXCLUSIVE REPORT<br />
A section for the most timely and harrowing news. Whatever it may<br />
be, knowledge is the catalyst that sets us into action.
Trans-Pacific Partnership:<br />
Corporate Rule of America<br />
Polly Cooke Hughes<br />
he Trans-Pacific Partnership<br />
(TPP) and other outrageously<br />
restrictive trade agreements are<br />
being negotiated secretly, and we must<br />
join the fight to stop them. The TPP has<br />
been dubbed “NAFTA on steroids”!<br />
Chile, Malaysia, Mexico, New Zealand,<br />
Peru, Singapore, Vietnam, and Japan<br />
Trade Promotion Authority (TPA),<br />
better known as fast-track authority,<br />
For about five years, the TPP has been<br />
Decisions would be made, not by each coun-<br />
has been proposed to allow President<br />
in negotiations behind closed doors<br />
try, but by a global business tribunal.<br />
Obama to sign trade agreements, and<br />
and some 600 corporate “trade advi-<br />
then take them to Congress. However,<br />
sors,” industry leaders, corporations<br />
Create special protections and remove<br />
Congress’ power is limited. Limited on<br />
have online access to the working text.<br />
global barriers for “too big to fail” banks<br />
time allowed for debate, no amend-<br />
However, congress does not have this<br />
and Wall Street, but not offer protections<br />
ments, and no filibustering. Congress<br />
access.<br />
to smaller, community banks.<br />
can only take an up or down vote. That’s<br />
it.<br />
A committee of congressmen was<br />
Give preferred “investor state” status to<br />
allowed to read the proposed agreement<br />
foreign companies that operate within our<br />
Congress last approved fast-track au-<br />
and those allowed to see it could not<br />
borders—ultimately, this would encourage<br />
thority in 2002 for President George<br />
take notes or make copies. (Sen. Alan<br />
U.S. companies to offshore jobs.<br />
W. Bush and it expired in 2007. Now,<br />
Grayson has tweeted about how “bad”<br />
the Obama administration is negotiating<br />
three trade accords — the 1) Trans-<br />
TPP is but he “isn’t allowed to tell us<br />
why.” ) 1<br />
Would lower wages for US workers.<br />
Pacific Partnership (TPP) with 11 other<br />
nations, the 2) Transatlantic Trade and<br />
Investment Partnership (TTIP) with 28<br />
European countries and 3) a global services<br />
pact with about 50 nations. The<br />
White House has been urging Congress<br />
to get Fast Track approved quickly but,<br />
so far, TPA has not been approved as<br />
it has a lot of public and legislative<br />
opposition.<br />
DEAL MADE BEHIND<br />
YOUR BACK:<br />
President Obama has been negotiating<br />
in secrecy and pushing for fast track to<br />
be renewed. The president would sign<br />
the agreement, take it to Congress, but<br />
Congress would have limited debate<br />
time and could only vote up or down<br />
with NO amendments and no filibustering<br />
allowed.<br />
HERE ARE SOME TENETS<br />
OF THE TPP (AS OBTAINED<br />
THROUGH WIKI LEAKS)<br />
Would exempt foreign companies from<br />
environmental regulations.<br />
Would affect consumer protections for food<br />
safety.<br />
Would destroy collective bargaining<br />
and threaten already established worker<br />
protections.<br />
Would bring “Buy American” programs to<br />
a halt by allowing:<br />
WORLD AUSTERITY REPORT<br />
1. Foreign companies to underbid U.S.<br />
TPP is a proposed agreement between<br />
Relinquish our rights to regulate within our<br />
companies on government contracts<br />
the U.S. and 11 nations that do business<br />
own borders (corporations would rule on<br />
paid for with our tax dollars<br />
throughout the Pacific Rim. Those 11<br />
this matter).<br />
nations are: Australia, Brunei, Canada,<br />
2. Foreign investors to file lawsuits in a<br />
8
TPP would only escalate the outsoucing of<br />
global business court to challenge “buy<br />
U.S. manufacturing jobs to low-wage East-<br />
local” programs claiming “buy local”<br />
Asian slave-labor.<br />
as unfair and would allow foreign<br />
Photo: Southern Baptist Convention<br />
investors to ask for compensation for<br />
anticipated lost profits.<br />
Would threaten to extend restrictive intellectual<br />
property laws and impose sanctions<br />
with respect to pharmaceutical pa-tents,<br />
which would then raise the cost of prescrip-<br />
The harm done to America’s manu-<br />
tion medicines.<br />
facturing sector was specifically mentioned<br />
and stated that trade deals have<br />
Internet restrictions. ISPs could become<br />
hurt, not helped, American companies.<br />
censors and block content sharing between<br />
Here is a quote from the letter:<br />
individuals.<br />
We believe any package should include<br />
Removing restrictions on U.S. stan-<br />
provisions to address currency manipu-<br />
dards for GMOs, making it impossible<br />
lation, stronger mechanisms to address<br />
for Americans to know what we are<br />
unfair labor practices, the ability of<br />
eating; will threaten Europe’s ban on<br />
communities to preserve their values,<br />
GMOs. (genetically modified organ-<br />
strong trade enforcement policies and<br />
ism) Encourage fracking and drilling;<br />
should provide innovative solutions to<br />
threaten environmental protections; ef-<br />
finance improvements to our crumbling<br />
fectively strip the EPA (Environmental<br />
infrastructure.<br />
Protection Agency) of its power to control<br />
damage caused by fracking.<br />
would introduce a rival measure giving<br />
The senators came up with some fine<br />
Congress more say over the final terms<br />
rhetoric, but you can discern from<br />
Drive up energy prices. The DOE<br />
of any agreements, given the pitfalls<br />
this quote that its lukewarm general-<br />
(Department of Energy) would lose<br />
of globalization for American workers.<br />
ization does not really oppose the free<br />
regulatory authority over fuel imports<br />
Separately, 151 Democrats have signed<br />
trade treaties (past or future). NAFTA<br />
and exports; oil and natural gas could<br />
a letter signaling opposition, and some<br />
has given us 20 years of low wages for<br />
be sold on the open market to the high-<br />
Republicans have also spoken against<br />
American workers and outsourcing<br />
est bidders.<br />
fast-track authority.<br />
of manufacturing jobs. The middle<br />
WORLD AUSTERITY REPORT<br />
2. FAST TRACK: AN<br />
UNDEMOCRATIC HELL<br />
Since the first week of January, legislation<br />
to pass Fast Track was introduced<br />
by Sen. Max Baucus, Democrat<br />
of Montana, who was Chair of the<br />
Senate Finance Committee and has<br />
since become Ambassador to China;<br />
Sen. Orrin G. Hatch Utah, the commit-<br />
On Thur., Jan. 16, a second letter was<br />
sent to Harry Reid. This was signed by<br />
12 senators. Here are the basic points<br />
of what was in the letter along with one<br />
quote from the letter:<br />
Basically, TPP & TTIP would remove<br />
power from Washington and transfer it<br />
to corporate tribunals. These national<br />
corporations would become the most<br />
powerful legal entities in the <strong>world</strong><br />
class has suffered enough. This letter<br />
was signed by Democrat Senators Al<br />
Franken, Tammy Baldwin, E. Warren,<br />
Chris Murphy, Tom Harkin, Carl<br />
Levin, Jeff Merkley, Jack Reid, Richard<br />
Blumenthal., Ed Markey, and Sheldon<br />
Whitehouse and Independent Bernie<br />
Sanders. 3<br />
IN JANUARY, A HEARING ABOUT<br />
THE TPA (fast track) was held by the<br />
tee’s senior Republican; and Rep Dave<br />
and would be making all economic<br />
Senate Finance Committee along with<br />
Camp, Republican Michigan, who is<br />
decisions.<br />
several CEOs. One of the most out-<br />
Chair of the House Ways and Means<br />
spoken was President Larry Cohen of<br />
Committee.<br />
Previous trade bills have been det-<br />
Communications Workers of America.<br />
Then, Rep Sander M. Levin of<br />
rimental to workers and national<br />
There were more supporters than de-<br />
Michigan, the senior Democrat on the<br />
competitiveness.<br />
tractors at the hearing. Four witness-<br />
Ways and Means Committee, said he<br />
es testified, and only Larry Cohen,<br />
9
President of the Communication<br />
Workers of America, spoke out against<br />
it. Committee members and Senators<br />
Sherrod Brown (D-OH) and Bob Casey<br />
(D-PA), were opposed. During the<br />
of the largest steel mills in the country.<br />
hearing bore Sen. Hatch said to Larry<br />
But by the middle of the 1980s, steel<br />
Cohen: “You and I are living in an alter-<br />
mills were merging or closing due to,<br />
native universe.” And “Why can’t unions<br />
basically, international competition<br />
see that TPA is needed?” Sen. Hatch<br />
and approximately 40,000 steel mill<br />
asked Cohen. And, yet, Hatch prom-<br />
jobs were lost by the mid-1980s. The<br />
http://clkrep.lacity.org/onlinedocs/2014/14-<br />
ised transparency during the legislative<br />
steel mills provided good salaries, ben-<br />
0002-S4_reso_01-10-14.pdf<br />
process! Senators Cote, Stegemann, and<br />
Hatch all said that TPA will help pass<br />
efits, and stability for many American<br />
families. 5<br />
http://www.citizenstrade.org/ctc/<br />
free trade agreements that will allow<br />
blog/2014/01/09/widespread-opposition-<br />
the export of more American goods<br />
Just imagine what would happen if<br />
camp-baucus-fast-track-legislation/<br />
and employ more American workers<br />
Americans made computers. We would<br />
(Opposition to Fast Track)<br />
AND they pointed to NAFTA, which<br />
have more skilled workers in well-<br />
was put into effect twenty years ago. We<br />
paid jobs, we wouldn’t have to rely on<br />
Notes<br />
all know how great NAFTA has been<br />
China for imported electronic goods,<br />
1 Carter, Zach. “Alan Grayson On Trans-<br />
for the USA.<br />
and we would pay less for those goods.<br />
Pacific Partner-ship.” The Huffington Post.<br />
“Abraham Lincoln remarked that if we<br />
TheHuffingtonPost.com, 18 June 2013. Web.<br />
Cohen countered again saying that<br />
made our own steel, we’d keep the rails,<br />
26 Mar. 2014. http://www.huffingtonpost.<br />
NAFTA exported American jobs, not<br />
the jobs, and the money.” A protective<br />
com/2013/06/18/alan-grayson-trans-pa-<br />
goods. “It’s common knowledge that<br />
tariff, preventing the outflow of re-<br />
cific-partnership_n_3456167.html<br />
since NAFTA, trade deficits have gone<br />
sources across national borders, allows<br />
up five-fold,” he said. “The question is,<br />
for the growth of absolute profit in the<br />
2 “Secret Trans-Pacific Partnership<br />
where does production occur? A mul-<br />
economy, with technology, goods, ser-<br />
Agreement (TPP) - IP Chapter.” Wikileaks.<br />
tinational doesn’t really care, or can’t.”<br />
vices and wages all increasing upward.<br />
org. Web. 26 Mar. 2014. https://wikileaks.<br />
Cohen also stated, “We want <strong>world</strong><br />
Find out more about protective tariffs<br />
org/tpp/#start<br />
trade. We must have <strong>world</strong> trade,” he<br />
at against<strong>austerity</strong>.org.<br />
said. “We have a global economy in the<br />
same way we have a global climate. The<br />
idea is, how do we promote the kind of<br />
TAKE ACTION - STOP TPP<br />
NOW!<br />
3 Wright, D. S. “Senators Write Letter<br />
To Harry Reid Opposing Fast Track<br />
Authority For TPP.” Firedoglake News<br />
sustainable trade, and production that<br />
we can be proud of?” 4<br />
15% IMPORT TARIFF WILL<br />
DEFEAT TPP<br />
The answer to Mr. Cohen’s question is<br />
the reintroduction of a protective tariff.<br />
The United Front Against Austerity<br />
proposes a 15% tariff on imported goods<br />
to level the playing field. No more cheap<br />
Please call, write, and email your legislators<br />
today and tell them:<br />
1. Do not pass TPA (fast track)<br />
2. Stop secret negotiations of trade<br />
agreements<br />
3. Impose a 15% tariff on imported<br />
goods<br />
Unite with United Front Against<br />
Austerity. Together, we can return to<br />
“Made in America.”<br />
Desk. Firedoglake.com, 16 Jan. 2014. Web.<br />
26 Mar. 2014. http://news.firedoglake.<br />
com/2014/01/16/senators-write-letter-toharry-reid-opposing-fast-track-authorityfor-tpp-and-ttip/<br />
4 “CWA President Larry Cohen: Senate<br />
Finance Committee Hearing on Trade.”<br />
YouTube. YouTube, 16 Jan. 2014. Web.<br />
26 Mar. 2014. http://www.youtube.com/<br />
watch?v=QGWojLcOSB0<br />
WORLD AUSTERITY REPORT<br />
labor, no more child labor, and no more<br />
Recommended Reading<br />
outsourcing of American jobs.<br />
http://against<strong>austerity</strong>.org/program/protec-<br />
5 Nelson, Ted. “Why Is Gary Indiana So<br />
tive-tariff (Protective Tariff Info)<br />
Dangerous?” EHow. Demand Media, 14<br />
Remember the steel mills that were<br />
July 2011. Web. 26 Mar. 2014. http://www.<br />
flourishing in America in the 20th cen-<br />
http://en.wikipedia.org/wiki/Report_on_<br />
ehow.com/info_8734196_gary-indiana-<br />
tury? The US Steel Mill in Gary, Indiana<br />
Manufactures (Alexander Hamilton on<br />
dangerous.html<br />
had 16,000 workers by 1920. It was one<br />
Tariffs)<br />
10
AUSTERITY NEWS<br />
A general collection of stories, snippets, and economic indicators to<br />
measure the declining levels of our living standards on a national<br />
and <strong>world</strong>-wide scale.
German Economy: A Process of<br />
Brutal Exploitation<br />
DR. WEBSTER G. TARPLEY<br />
round the <strong>world</strong>, dissatisfaction<br />
is growing with the Anglo-<br />
American economic model,<br />
which presents itself as a system of free<br />
markets and free trade. There is also<br />
growing dissatisfaction with the extreme<br />
disparities of individual income<br />
this model has created. Not surprisingly,<br />
many observers have seen an attractive<br />
alternative in the German social<br />
market economy, featuring a highly<br />
regulated system in which small and<br />
medium export-oriented companies<br />
are prominent, and in which trade<br />
unions play an integral part, both in<br />
factory councils and by placing representatives<br />
on corporate boards.<br />
But a closer look at Germany reveals<br />
that the social market economy of earlier<br />
decades now includes a vast low-wage<br />
sector of workers who have become<br />
second-class citizens, receiving much<br />
the same status which undocumented<br />
Hispanic immigrants in the United<br />
States would occupy under plans put<br />
forward by the Republican Party and<br />
supported by many Democrats. The<br />
German low-wage sub-economy has<br />
a name: it is called Hartz IV, named<br />
after the former personnel boss of the<br />
Volkswagen concern, and enacted into<br />
law under the auspices of the former<br />
Social Democratic Chancellor Gerhard<br />
Schröder -- with massive complicity<br />
from the neo-corporatist German trade<br />
unions -- and successively amended<br />
several times, thus accounting for the<br />
IV. German working people have just<br />
completed their eleventh year under<br />
the yoke of Hartz, which came into full<br />
effect in January 2003, and has been<br />
expanded and perfected by Europe’s<br />
reigning <strong>austerity</strong> enforcer, Christian<br />
Democratic Chancellor Angela Merkel. 3 million, 4 million, and then 5 million<br />
workers. Hartz wanted to prevent these<br />
The various Hartz plans started as a response<br />
to the permanently high levels collecting their full jobless benefits over<br />
millions of unemployed workers from<br />
of unemployment which have prevailed an indefinite period, as was often the<br />
in West Germany and then in reunified case before 2003. His response was to<br />
Germany, since the early 1980s. These design a system which shunted unemployed<br />
workers off the unemployment<br />
high jobless levels are themselves a<br />
reflection of the slowing of <strong>world</strong> economic<br />
progress in the decade after the rolls after about one or two years, de-<br />
insurance rolls and onto the welfare<br />
demolition of the highly successful 1944 pending on their age, and to impose a<br />
Bretton Woods system, which was terminated<br />
by Nixon and Kissinger on ment on these welfare recipients.<br />
stringent low-wage workfare require-<br />
August 15, 1971. During the 1980s and Workfare means that welfare victims<br />
1990s, Germany was afflicted by unemployment<br />
in the neighbor-hood of often functioning as strikebreakers,<br />
are required to work for their benefits,<br />
and always contributing to a race to<br />
the bottom in labor conditions. The<br />
workfare requirement, in the opinion<br />
of some, amounted to the institution of<br />
a kind of slave labor.<br />
This article first appeared on Press<br />
TV; W.A.R. does not own the rights<br />
to this article. To read the full article,<br />
please visit: www.presstv.com/<br />
detail/2014/02/26/352307/germaneconomic-powerhouse-on-sand/<br />
No, this is not a creature from the Star<br />
Wars “bar scene,” this is Angela Merkel,<br />
Chancellor of Germany, 2005 - present.<br />
Photo: Michael Sohn / AP<br />
WORLD AUSTERITY REPORT<br />
12
Agenda 21: Eerie Observations<br />
from the Erie Canal<br />
STEPHEN BOSS<br />
WORLD AUSTERITY REPORT<br />
ince his election, New York’s<br />
Governor Cuomo has been encouraging<br />
Villages, Hamlets and<br />
Townships to dissolve and be managed<br />
by County Executives. This practice in<br />
theory would eliminate redundancy<br />
(and many jobs) but will devastate<br />
northern communities. Communities<br />
that opt for dissolution are offered cash<br />
incentives to cover costs of merging.<br />
Quite a few of these pushes have failed,<br />
as people tend to appreciate the various<br />
layers of government, and the immediacy<br />
of small government.<br />
Our village’s mayor recently attended a<br />
Mayor’s Association meeting, and this<br />
topic was on the agenda. The tendency<br />
toward consolidation is influenced by<br />
“Agenda 21,” a construction of the UN,<br />
and has membership of many communities<br />
across the USA. Gov. Cuomo’s<br />
policies lean in this direction. There<br />
is a desire for local governments to be<br />
overridden, so that natural resources<br />
can be controlled by donors and political<br />
cronies, in my opinion. Upon<br />
inauguration, the governor passed an<br />
initiative called the “Land Bank.” This<br />
system allows selected municipalities<br />
to drastically speed up the foreclosure<br />
process on properties for delinquent<br />
taxes of as little as one year.<br />
These properties are immediately<br />
placed in a holding bank, awaiting deed<br />
and title transfer. Upon clearance, they<br />
get sold at auction. Of course, this practice<br />
happens largely in blighted cities’<br />
poorest neighborhoods with large minority<br />
populations. If the first banking<br />
crisis didn’t grab their assets, this law<br />
will.<br />
Gov. Cuomo’s recent move to tax the<br />
financial industry on only 8% of their<br />
securities income is a wrong move. The<br />
state desperately needs the money for<br />
failing infrastructure, schools and<br />
social programs. Rather than giving<br />
Wall Street yet another break, we need<br />
to apply a 1% Wall Street Sales Tax.<br />
Former Cuomo backers are jumping<br />
ship; Howard Samuels is encouraging<br />
him to run as a Republican. That’s a<br />
novel idea and one that should catch on<br />
nationally, perhaps opening the doors<br />
for more traditional Democrats to seek<br />
office.<br />
Sources<br />
1. Kornbluh, Jacob. “JP Updates.” JP<br />
Updates. , 20 Mar. 2014. Web. 27 Mar.<br />
2014. http://jpupdates.com/2014/03/20/<br />
nygov-cuomo-run-republican-says-formerprogressive-supporter/<br />
2. “Governor Cuomo Signs Land Bank<br />
Legislation.” Governor.ny.gov. Office of<br />
Andrew M. Cuomo, 29 July 2011. Web. 27<br />
Mar. 2014. http://www.governor.ny.gov/<br />
press/072911landbanklegislation<br />
Governor Andrew Cuomo (Democrat) is<br />
encouraged to run as a Republican.<br />
Photo: Buck Ennis<br />
13
INTERNATIONAL<br />
Under the umbrella of an empire -in its quest for unilateral domination<br />
- the internal population often suffers extreme forms of <strong>austerity</strong>.
Ukraine’s Fascist Regime<br />
Created By the West [Part II]<br />
BRANDON TURBEVILLE<br />
n my previous article dealing with<br />
de-stabilization mechanisms<br />
and color revolutions entitled<br />
“The History and Science of Color<br />
Revolutions, Part 1,” I briefly discussed<br />
the history of the theory behind such<br />
mass movements and the related mo-<br />
adolescents” must be organized by the<br />
bilizations of “swarming adolescents”<br />
agents directing the destabilization.<br />
the NED. Albert Einstein’s president<br />
as well as the purposes for which color<br />
[2006] is Col. Robert Helvey, a former<br />
revolutions are generally deployed.<br />
With this in mind, Jonathan Mowat’s<br />
US Army officer with 30 years of expe-<br />
excellent article, “The New Gladio In<br />
rience in Southeast Asia. He has served<br />
Whenever one discusses color revolu-<br />
Action: ‘Swarming Adolescents,’” which<br />
as the case officer for youth groups<br />
tions, however, it is important to un-<br />
I cited at length in my last article, goes<br />
active in the Balkans and Eastern<br />
derstand that this tactic is not merely<br />
into the recent history of color revolu-<br />
Europe since at least 1999.<br />
a recent invention on the part of the<br />
tion tactics along with a brief discus-<br />
ruling elite. In fact, this particular<br />
sion regarding the history of some of its<br />
Mowat then goes on to briefly describe<br />
method of destabilization has quite a<br />
individual and organizational players,<br />
Robert Helvey’s background in rela-<br />
long history, having been perfected in<br />
most notably Gene Sharp, Bob Helvey,<br />
tion to the color revolution industry.<br />
the late 1960s and refined into an art<br />
and The Albert Einstein Institution.<br />
He writes:<br />
form as time has progressed.<br />
Still, it is important to understand that<br />
Col. Helvey <strong>report</strong>s, in a January 29,<br />
It is also extremely important to un-<br />
these individuals and organizations are<br />
2001, interview with film producer<br />
WORLD AUSTERITY REPORT<br />
derstand how color revolutions work, as<br />
well as how these methods are successfully<br />
deployed. Such an understanding<br />
is particularly relevant if one wishes<br />
to combat or, at the very least, avoid<br />
the tragic results of color revolutions in<br />
their own country or the propaganda<br />
narrative surrounding those revolutions<br />
in another part of the <strong>world</strong>.<br />
Because color revolutions, destabiliza-<br />
by no means the pinnacle of international<br />
destabilizations and color revolutions<br />
nor are they the sole facilitators of<br />
it. 1 Regardless, Mowat explains:<br />
The creation and deployment of coups<br />
of any kind requires agents on the<br />
ground. The main handler of these<br />
coups on the “street side” has been the<br />
Albert Einstein Institution, which<br />
was formed in 1983 as an off shoot of<br />
Steve York in Belgrade, that he first<br />
got involved in “strategic nonviolence”<br />
upon seeing the failure of military approaches<br />
to toppling dictators—especially<br />
in Myanmar, where he had been<br />
stationed as military attaché—and<br />
seeing the potential of Sharp’s alternative<br />
approach. According to B.<br />
Raman, the former director of India’s<br />
foreign intelligence agency, RAW, in a<br />
December 2001 paper published by his<br />
tions, and coups require much more<br />
Harvard University under the impetus<br />
institute entitled, “The USA’s National<br />
than propaganda inside or outside<br />
of Dr. Gene Sharp, and which special-<br />
Endowment For Democracy (NED):<br />
the country, it is necessary to orga-<br />
izes in “nonviolence as a form of war-<br />
An Update,” Helvey “was an officer of<br />
nize, train, indoctrinate, and mobilize<br />
fare.” Dr. Sharp had been the executive<br />
the Defense Intelligence Agency of the<br />
with “boots on the ground” inside the<br />
secretary of A.J. Muste, the famous U.S.<br />
Pentagon, who had served in Vietnam<br />
target nation. Since the movement will<br />
Trotskyite labor organizer and peace-<br />
and, subsequently, as the US Defence<br />
not be an organic one, the “swarming<br />
nik. The group is funded by Soros and<br />
Attache in Yangon, Myanmar (1983<br />
15
to 85), during which he clandestinely<br />
organized the Myanmar students to<br />
work behind Aung San Suu Kyi and<br />
in collaboration with Bo Mya’s Karen<br />
insurgent group. . . . He also trained in<br />
Hong Kong the student leaders from<br />
Beijing in mass demonstration techniques<br />
which they were to subsequently<br />
use in the Tiananmen Square incident<br />
of June 1989” and “is now believed to<br />
be acting as an adviser to the Falun<br />
Gong, the religious sect of China, in<br />
similar civil disobedience techniques.”<br />
Col. Helvey nominally retired from the<br />
army in 1991, but had been working<br />
with Albert Einstein and Soros long<br />
before then.<br />
Yet, as Mowat demonstrates, Helvey was<br />
by no means the backbone of the Albert<br />
Einstein Institute, despite his heavy involvement.<br />
Indeed, AEI relies heavily<br />
on the work of one of the leading figures<br />
of color revolutionary theory, Dr.<br />
Gene Sharp. Mowat states:<br />
Reflecting Albert Einstein’s patronage,<br />
one of its first books was Dr. Sharp’s<br />
“Making Europe Unconquerable: The<br />
Potential of Civilian-Based Deterrence<br />
and Defense,” published in 1985 with<br />
a forward by George Kennan, the<br />
famous “Mr. X” 1940’s architect of the<br />
Cold War who was also a founder of<br />
the CIA’s Operations division. There,<br />
Sharp <strong>report</strong>s that “civilian-based defense”<br />
could counter the Soviet threat<br />
through its ability “to deter and defeat<br />
attacks by making a society ungovernable<br />
by would be oppressors” and “by<br />
maintaining a capacity for orderly<br />
self-rule even in the face of extreme<br />
threats and actual aggression.” He illustrates<br />
its feasibility by discussing the<br />
examples of the Algerian independence<br />
in 1961 and the Czechoslovakian resistance<br />
to Soviet invasion in 1968-<br />
9. In his forward, Kennan praises<br />
Sharp for showing the “possibilities<br />
of deterrence and resistance by civilians”<br />
as a “partial alternative to the<br />
traditional, purely military concepts<br />
of national defense.” The book was<br />
promptly translated into German,<br />
Norwegian, Italian, Danish, and other<br />
NATO country languages. See the link<br />
to the Italian translation of the book<br />
(Verso un’Europa Inconquistabile. 190<br />
pp. 1989 Introduction by Gianfranco<br />
Pasquino) that sports a series of fashionable<br />
sociologists and “politologists”<br />
prefacing the book and calling for a<br />
civil resistance to a possible Soviet invasion<br />
of Italy.<br />
Such formulations suggest that Albert<br />
Einstein activities were, ironically, coherent<br />
(or, possibly updating) the infamous<br />
NATO’s “Gladio” stay-behind<br />
network, whose purpose was to combat<br />
possible Soviet occupation through a<br />
Gene Sharp, founder of Albert Einstein<br />
Institution, recipient of Ford Foundation<br />
grants, International Republican Institute,<br />
& National Endowment for Democracy.<br />
Photo: Mattias Lundblad<br />
WORLD AUSTERITY REPORT<br />
16
panoply of military and nonmilitary<br />
means. The investigations into Gladio,<br />
and those following the 1978 assassination<br />
of former Prime Minister Aldo<br />
Moro, also shed some light (immediately<br />
switched off) on a professional<br />
possibly concurrently with his position<br />
apparatus of destabilization that had<br />
at the Albert Einstein Institution, the<br />
been invisible for several decades to<br />
Washington-based Center for Strategic<br />
the public.<br />
and International Studies (CSIS) <strong>report</strong>s<br />
that Gen. Atkeson, who also ad-<br />
Achieving in civilian form what had<br />
It is noteworthy that the former deputy<br />
vised CSIS on “international security,”<br />
not been possible militarily is the whole<br />
chief of intelligence for the US Army<br />
served as “national intelligence officer<br />
purpose of the color revolution, despite<br />
in Europe, Major General Edward<br />
for general purpose forces on the staff<br />
the fact that military involvement may<br />
Atkeson, first “suggested the name ‘ci-<br />
of the director of Central Intelligence.”<br />
follow the initial destabilization cam-<br />
vilian based defense’ to Sharp,” John<br />
paign. Learning the ins and outs of the<br />
M. McCartney, Coordinator of the<br />
A 1990 variant of Sharp’s book,<br />
color revolution technique, however,<br />
Nonviolent Action for National Defense<br />
“Civilian-Based Defense: A Post-<br />
will provide a much needed service<br />
Institute, <strong>report</strong>s in his group’s CBD<br />
Military Weapons System,” the Albert<br />
in terms of preventing that goal from<br />
News and Opinion of March 1991. By<br />
Einstein Institution re-ports, “was used<br />
being met.<br />
1985, Gen. Atkeson, then retired from<br />
in 1991 and 1992 by the new indepen-<br />
the US Army, was giving seminars<br />
dent governments of Estonia, Latvia,<br />
Notes<br />
at Harvard entitled “Civilian-based<br />
and Lithuania in planning their defense<br />
1.Mowat, Jonathan. “A New Gladio In<br />
Defense and the Art of War.”<br />
against Soviet efforts to regain control.”<br />
Action.” Online Journal. Reposted by<br />
ColorRevolutionandGeoPoli-tics.blogspot.<br />
WORLD AUSTERITY REPORT<br />
The Albert Einstein Institution <strong>report</strong>s,<br />
in its “1994-99 Report on Activities,”<br />
that Gen. Atkeson also served on<br />
Einstein’s advisory board in those<br />
years. Following his posting as the head<br />
of US Army intelligence in Europe, and<br />
As we shall see below, with such backing,<br />
Col. Helvey and his colleagues have<br />
created a series of youth movements<br />
including Otpor! in Serbia, Kmara!<br />
in Georgia, Pora! in Ukraine, and the<br />
like, which are already vi-rally replicating<br />
other sects throughout the former<br />
Soviet Union, achieving in civilian form<br />
what had not been possible militarily in<br />
the 1980s. The groups are also spreading<br />
to Africa and South America. 2<br />
com. Accessed on July 3, 2013.<br />
See also, Tarpley, Webster G. Obama: The<br />
Postmodern Coup. Mowat, Jonathan.<br />
“A New Gladio In Action: ‘Swarming<br />
Adolescents.’” Progressive Press. 2008. Pp.<br />
243-270.<br />
2. Mowat, Jonathan. “A New Gladio In<br />
Action.” Online Journal. Reposted by<br />
ColorRevolutionandGeoPoli-tics.blogspot.<br />
com. Accessed on July 3, 2013.<br />
See also, Tarpley, Webster G. Obama: The<br />
Postmodern Coup. Mowat, Jonathan.<br />
“A New Gladio In Action: ‘Swarming<br />
Adolescents.’” Progressive Press. 2008. Pp.<br />
248-250.<br />
17
TAKE ACTION<br />
“Today, the news is scandals; that is news, but the many<br />
children who don’t have food - that’s not news. This is grave.<br />
We can’t rest easy while things are this way.” – Pope Francis<br />
Indeed, this is no time to be uninvolved. There are many ways to make<br />
your voice be heard: social media, petitioning, demonstrations, letters<br />
to Congress, blog posts, etc. Each of us can do our part to bring about<br />
positive changes in our lives.
It’s Easier Than You Think To<br />
Contact Your Legislators<br />
Polly Cooke Hughes<br />
he 21st Century finds too many<br />
Americans plagued with apathy<br />
and complacency toward politics.<br />
We have become consumed with<br />
our daily lives and for many just with<br />
issues of basic survival. If we are to turn<br />
legislation in favor of corporations. The<br />
around the <strong>austerity</strong> imposed on citi-<br />
decision by the Supreme Court regard-<br />
zens by our government (federal, state,<br />
ing Citizens United secured the practice<br />
and local) and return to a prosperous<br />
of allowing individuals to anonymously<br />
country for any American willing to<br />
contribute to foundations and the fund-<br />
learn and work, then we must be dili-<br />
ing becomes unlimited! This is a fight<br />
gent in keeping constant communica-<br />
we must take up now. After all, our leg-<br />
tion with our legislators.<br />
islators all come up for reelection, and<br />
the elections from 2014 through 2016<br />
OUR LEGISLATORS DO LISTEN to<br />
are crucial. We must unite and take<br />
their constituents, especially during<br />
action now.<br />
or faxed directly to your legislators can<br />
an election year. So many Tea Party,<br />
be optimally dynamic. It only takes a<br />
Republican, and Democrat candidates<br />
WHAT CAN YOU DO? Attend meetings<br />
few minutes to send an email or make<br />
are under the thumb of huge corpo-<br />
of like-minded organizations in your<br />
a few calls. Make it a habit by doing it<br />
rations, Wall Street financiers, bil-<br />
community, run for your local school<br />
weekly and let your voice be heard!<br />
WORLD AUSTERITY REPORT<br />
lionaires with wide open wallets, not<br />
to mention the American Legislative<br />
Exchange Council (ALEC) that write the<br />
board or city council, or just show up<br />
at a protest or demonstration to hold<br />
a sign about an issue you feel strongly<br />
about. If possible, attend your state’s<br />
legislative committee meetings or town<br />
hall meetings many legislators hold,<br />
especially during campaign season.<br />
Even if you can’t participate in this type<br />
of activism, you can do something! You<br />
can contact your legislators via email,<br />
fax, or phone. A link is provided below<br />
to contact directly your state’s legislators.<br />
A phone call speaking to your leg-<br />
TO GET YOU STARTED,<br />
THERE IS A SAMPLE ON<br />
THE NEXT PAGE<br />
Personalize it with a specific issue and<br />
your own thoughts. Most legislators<br />
will ask for your name, city, state, and<br />
email address in order to send them an<br />
email. Most will also ask you to choose<br />
an issue category from a drop-down<br />
box on the site.<br />
Use These Links to Find Your Legislators<br />
islator or a member of his staff can be<br />
very effective. An email or letter mailed<br />
For House of Representatives: http://<br />
www.house.gov/representatives/#state<br />
For the Senate: http://www.senate.gov/<br />
general/contact_information/senators_cfm.cfm<br />
19
Dear (Senator or Representative)<br />
____________:<br />
I am writing to you today with concern about _____________.<br />
(Fill in the blank with the issue you are writing to him/her about.) This<br />
issue is important to me because (insert a personal story here if<br />
possible or state that as a citizen you are for/against the specific issue.)<br />
As a constituent, I follow closely the issues that are affecting the<br />
United States.<br />
I hope I can give you my support in the next election as a<br />
candidate who is agreeable to the issues that are important to<br />
me and to the State of ___. Thank you.<br />
Sincerely,<br />
(Provide your name.)
LETTERS TO THE CHEF<br />
A special section that combines both delicious recipes to enjoy and<br />
recipes of uplifting ideas for turning the tide from <strong>austerity</strong> to<br />
prosperity for all hard-working Americans.
Recipe for Economic<br />
Development and American<br />
Revolution: 21 st Century Style<br />
ALAIN LAREAU<br />
elcome to the launch of<br />
W.A.R., the World Austerity<br />
Report. I am pleased to acclaim<br />
we enjoy the association of a<br />
group of very talented and dedicated<br />
editors. I take this opportunity to call<br />
Steak, which is tough if you treat it as a<br />
on all activists of goodwill to bring<br />
sirloin. My grandmother fed me a lot of<br />
many submissions of articles and essays<br />
Cube Steak (similar to Chuck) but she<br />
to our editorial board as we endeavor to<br />
always made it taste good with a light<br />
Ingredients<br />
cover a broad range of <strong>austerity</strong>-related<br />
brown sauce.<br />
Bone in Chuck Roast, thicker the better,<br />
topics.<br />
2 in. if you can get it. Potatoes (peeled<br />
There are delicious meals to be had<br />
or not). Carrots (chopped or not).<br />
Austerity must STOP. Economic<br />
with the non-sirloin beef cuts at the<br />
Onions (this is the best part) whole or<br />
Prosperity may be had as long as we<br />
market, and when cost for the budget<br />
in half Salt perhaps as much as 1/3 of a<br />
demonstrate the political will to bring<br />
is an issue you may want to know about<br />
cup or more.<br />
it forth. As I am hoping to whet your ap-<br />
this one particular meal I enjoyed when<br />
petite, I will start with “THE RECIPE”<br />
I was young: Chuck Roast dinner with<br />
Equipment Needed<br />
Potatoes, Onions, and Carrots.<br />
The classic oval enameled roasting pan<br />
Chained CPI got you down?<br />
with cover.<br />
Many will say the source definition of<br />
Tired of eating Cat Food?<br />
the word “recipe” is to “get, or gather,<br />
Technique<br />
together,¨ so it IS a list but not JUST a<br />
Hot Air Roasting with no water, with<br />
Wishing you could afford Steak?<br />
list. When I write down a recipe I often<br />
bone in roast rubbed with Salt.<br />
Do you wonder where is the political<br />
will to do a simple thing like raise the<br />
cap on the Social Security tax structure<br />
to keep the fund healthy?<br />
What should be our next move?<br />
AL’S BONE-IN CHUCK<br />
ROAST RECIPE<br />
format it with the intention of having<br />
it go into someone else’s recipe box.<br />
Some folks like to have the origin of<br />
the dish or the context of the cuisine<br />
at the top and, as a fellow born (1960)<br />
in a Massachusetts sea-coast town who<br />
learned it from his mom whose parents<br />
in turn were French-Canadian emigrants,<br />
I like to make a recipe personal<br />
and I also like to set a synopsis of both<br />
the equipment employed and/or the<br />
Instructions<br />
1) Roast at 375 degrees, meat only uncovered<br />
for 60 minutes at least, but Add<br />
a little water (no more than 1/8 cup) at<br />
30-45 minutes.<br />
2) After 1 hour of cooking time, Add<br />
vegetables, placing onions atop the<br />
roast.<br />
WORLD AUSTERITY REPORT<br />
So first the SIZZLE. Are you like me- do<br />
philosophy employed. Very important<br />
3) Check every 20 minutes & add more<br />
you love a good steak? I enjoy a nice red<br />
to some people! I will also include the<br />
water if needed.<br />
Sirloin when I can afford it, but often<br />
challenge of a recipe —do it up right—<br />
I purchase the Round Steak when the<br />
anyway, if it it’s not a challenge, why<br />
4) After 1 hour, add 1/8 cup or more<br />
budget permits.<br />
bother?<br />
water and cover (slight steam pressure<br />
drives flavor back into the meat).<br />
What about that other beef, the Chuck<br />
22
WORLD AUSTERITY REPORT<br />
Note<br />
If roast is large may roast 2-1/2 hours,<br />
then pull meat and soft vegetables out<br />
and set aside to keep warm.<br />
5) Add water to pan to fill to 1/2-3/4<br />
inches<br />
6) On stove, boil the potatoes and recover<br />
meat drippings 10 min., longer<br />
if you want softer potatoes. Serve as<br />
platter meal at family table. If it comes<br />
out right you will know it, I promise.<br />
There it is.<br />
Keeping the water at just the right<br />
amounts and carefully watching the<br />
progress of this dish is the secret to<br />
this meal. Quite a meal it is too, but<br />
add water too soon and too much and<br />
you wasted your time.<br />
AN ECONOMIC RECIPE<br />
The word ‘recipe’ as we said, can be interpreted<br />
as to “get, or gather, together.”<br />
So it is a list; that is the way we see them<br />
most often but a recipe needs to also<br />
describe method and technique. When<br />
cooks pass their recipes back and forth<br />
they change them a little each time. We<br />
are not afraid of too many cooks in the<br />
kitchen and when we are proud of our<br />
recipes we allow and welcome testing<br />
and modification.<br />
I boast that I know how to generate<br />
a true and real economic prosperity,<br />
where to find all the needed ingredients<br />
and that all budget cuts are unnecessary<br />
and counterproductive.<br />
Therefore, when budget cuts kill it<br />
constitutes murder. This introduction<br />
of “The Recipe” is intended to be spread<br />
as an invitation for discussion that can<br />
transform and reshape itself as the<br />
banter develops in the same fashion<br />
as the cooks and chefs would do with<br />
their recipes. There is a section of our<br />
population that is of particular risk. the current rhetoric describing that any<br />
We at United Front Against Austerity proposed changes to Medicare or Social<br />
(UFAA) had recognized this during our Security will only affect programs of<br />
founding conference back in October of people below a certain specified age.”<br />
2012. We warned “Do not be fooled by I go on record, offering my personal<br />
perspective, telling you the elderly are<br />
in extreme danger and you must prepare<br />
now to defend them. I fear that if<br />
the people do not rally to protect the<br />
elderly the Nation may lose its soul.<br />
At the time you were not being told that<br />
the cuts proposed to Medicaid will hurt<br />
the most because that is how the nursing<br />
homes are funded. We made a call<br />
to action, no cuts are necessary and we<br />
are here to explain why and to tell what<br />
we can do instead.<br />
If our government were not in a state<br />
of hijack, it would be a simple matter<br />
of passing a bill to provide funding to<br />
Medicaid dispensations to people above<br />
a specified age expanded to provide for<br />
total needs, which makes sense because<br />
the total of our physical economy is bequeathed<br />
to us by all those gone before<br />
us.<br />
Do it up right - Al’s Recipe for Chuck Roast<br />
with Potatoes, Onions, & Carrots<br />
23
This means that the older ones among<br />
us have more right to its use than<br />
anyone else. The funding for this expenditure<br />
should come from revenue<br />
derived from Capital Gains Tax specifically<br />
because the piling up of monetary<br />
purchasing power garnered from the<br />
Capital Gains of financial instruments<br />
represent an extraction, a redistribution<br />
of wealth away from the people.<br />
A properly adjusted Capital Gains Tax<br />
commandeers this looting from the<br />
people back to the people and it is very<br />
moral to appropriate this to the elderly.<br />
Providing a boon to the geriatric care<br />
sector is a jobs program and since everyone<br />
gets old there can be no playing<br />
favorites here. This is a description<br />
of something you should expect to see<br />
in a sane economy. Alas, the government<br />
is in a state of hijack. The two<br />
major parties are in a state of hijack.<br />
The banks are in a state of hijack. The<br />
news media is in a state of hijack, even<br />
the universities are in a state of hijack.<br />
So an increase in the Capital Gains tax<br />
rate is not (politically) feasible; another<br />
way must be found.<br />
The means of funding must make sense<br />
to the broad majority of citizens and<br />
since we cannot rely on party pundits<br />
or media outlets, we need to do this<br />
ourselves. The answer UFAA has come<br />
up with is a Transaction Tax on the quadrillion<br />
dollar turnover on Wall Street<br />
where presently no sales tax is levied at<br />
all. Let the popular name for this push<br />
be “The 1% Wall Street Sales Tax.” The<br />
slogan may be “Stop The Cuts-Tax Wall<br />
Street.” Keep in mind this will have to<br />
be accomplished in an environment<br />
where the massive fraud and looting<br />
in the banking and investment sector<br />
has brought no prosecutorial response<br />
from government whatsoever.<br />
We warned:<br />
The <strong>austerity</strong> push is coming down<br />
the pike regardless of who is winning<br />
the Presidential election or wining the<br />
control of Congress. There is no time to<br />
lose; you must begin organizing now.<br />
We will develop for you a step-by-step<br />
description of all the necessary ingredients<br />
for a full blast economic recovery.<br />
After all, where is the will of our current<br />
legislators to raise the cap on the Social<br />
Security tax structure to keep the fund<br />
healthy? Would that not be an excellent<br />
“next move”¨ to protect this “right” for<br />
all Americans? Join in the banter. Let<br />
many chime in here and there, tweak<br />
the Recipe, make it your own. Pass it on<br />
to your children. Please feel free to contact<br />
UFAA. We welcome your Letters to<br />
the Editor or even Letters to the Chef.<br />
Let’s come up with more ingredients to<br />
make this recipe of ”NO AUSTERITY”<br />
a success for every citizen of America.<br />
WORLD AUSTERITY REPORT<br />
24
POLICY & PROGRAM<br />
“Power concedes nothing without a demand!”<br />
– Frederick Douglass
1% Wall Street Sales Tax: Big<br />
Banks Caused This Crisis, Make<br />
Them Pay<br />
BRANDON TURBEVILLE<br />
s the March 1 deadline rapidly<br />
approaches for what has been<br />
termed the “Sequestration,” the<br />
majority of Americans seem unable to<br />
do anything other than sit idly by and<br />
While not openly labeled as Austerity<br />
wonder to themselves what programs<br />
measures, the growing cuts to the<br />
and agencies will be cut under the guise<br />
American social safety net and U.S.<br />
of “balancing the budget,” “reducing<br />
critical infrastructure coupled with<br />
afford to maintain a social safety net<br />
the deficit,” and “cutting government<br />
alarming increases in taxes for low<br />
system without vastly increasing taxes<br />
spending.”<br />
income to upper middle income work-<br />
or simply abolishing the program alto-<br />
ers should leave no doubt as to what<br />
gether are <strong>report</strong>ed back to uninformed<br />
Unfortunately, by applying terminolo-<br />
is actually taking place within the<br />
constituencies of both political parties<br />
gy to the latest “crisis” in Congress such<br />
United States. Although nomenclature<br />
to be parroted back to them in times<br />
as the “Debt Ceiling,” “Fiscal Cliff,” and<br />
and terminology may be different in<br />
of national debate in the form of man-<br />
now the “Sequester,” the mainstream<br />
the public discourse, make no mis-<br />
dates and demands.<br />
media, along with the relevant govern-<br />
take that Americans have much more<br />
ment agents, major banks, and corpo-<br />
in common with the Greeks, Spanish,<br />
From Libertarians who oppose social<br />
rations, are able to hype the popula-<br />
Irish, and other Austerity victims than<br />
safety net programs on ideological<br />
tion into a state of hysteria and fear<br />
they may wish to admit.<br />
grounds (as promoted by the subversive<br />
(for those that actually pay attention<br />
Rockefeller family) and Conservatives<br />
to anything other than the latest tele-<br />
Largely at the forefront of any bud-<br />
who have money and expect to con-<br />
vision show) so that the general public<br />
getary discussion in the United States<br />
tinue to have money (hence the lack of<br />
will be thoroughly convinced that the<br />
only way to avoid imminent disaster is<br />
to reach a compromise in the form of<br />
cuts, firings, and a general reduction of<br />
standards of living.<br />
In reality, the creatively-named<br />
“Sequester” is nothing more than semantic<br />
jargon devised for purposes of<br />
the implementation of <strong>austerity</strong> measures<br />
against the American people. It is<br />
is the issue of government spending<br />
as it relates to programs such as<br />
Medicare, Social Security, Medicaid,<br />
Unemployment Insurance, Food<br />
Stamps, etc. – programs that have been<br />
given the politically charged name of<br />
“entitlement programs” in or-der to<br />
associate the spoiled child mentality<br />
with programs that have actually been<br />
funded by the taxes of working people<br />
during the course of an entire lifetime.<br />
concern for anyone who may not enjoy<br />
their level of comfort at the moment)<br />
to Socialists who are willing to bleed<br />
the average citizen for every-thing he is<br />
worth (for little in return but that which<br />
government decides is appropriate) and<br />
Liberals who are willing to both fleece<br />
taxpayers and compromise the programs<br />
these taxes would allegedly go<br />
to support, it is clear that the working<br />
men and women of the United States<br />
WORLD AUSTERITY REPORT<br />
quite clear that, although the Sequester<br />
and those who have been victimized<br />
itself exempts many social safety net<br />
Constant propaganda from both pil-<br />
by Wall Street parasitism and the folly<br />
programs in terms of its automatic<br />
lars of the left/right paradigm have<br />
of Free Trade are left completely alone<br />
spending cuts pending a failure of<br />
contributed to the brainwashing of<br />
and to themselves.<br />
Congress to reach an agreement, the<br />
the American population regarding the<br />
social safety net is very much on the<br />
programs mentioned above. Most nota-<br />
Yet, amongst all of the reasons put for-<br />
table in the course of those discussions.<br />
bly, claims that the United States cannot<br />
ward as justification for the dismantling<br />
26
of the social safety net, few mention the<br />
Wall Street bailouts and the $27 trillion<br />
worth of credit ex-tended to bankrupt<br />
institutions under the concept of “too<br />
big to fail.” Likewise, few tend to mention<br />
the financial costs of administer-<br />
the tax should be split evenly be-tween<br />
ing a global war of terror on virtually<br />
the Federal government and the States.<br />
every continent or the development and<br />
maintenance of a police state here at<br />
The following is a brief explanation of<br />
home. Neither are the consequences<br />
how this program would achieve such<br />
of prosecuting an unbelievably stupid<br />
a lofty goal and how it should be imple-<br />
though it had earned profits of $4.4 bil-<br />
and non-productive War on Drugs dis-<br />
mented in order to achieve maximum<br />
lion. Yet it also received a tax refund<br />
cussed when it comes to questions of<br />
effect. In short, it is the argument for<br />
from the IRS. In BoA’s case, however,<br />
what should be cut from the Federal<br />
the creation and implementation of the<br />
the refund was to the sum of $1.9 bil-<br />
budget.<br />
Wall Street Sales Tax.<br />
lion. It should also be pointed out that<br />
Instead, the talk immediately turns to<br />
the social safety net and the programs<br />
THE CASE FOR THE WALL<br />
STREET SALES TAX<br />
BoA received over $45 billion from the<br />
U.S. Treasury and $1.3 trillion in zero<br />
interest credit from the Federal Reserve<br />
that are currently keeping millions of<br />
during the “financial crisis” of 2008.<br />
Americans alive.<br />
1) Wall Street Pays No Tax<br />
BoA was able to repeat their tax dodge<br />
Wall Street banks are, by definition,<br />
again in 2011.<br />
Yet there is a more immediate and pref-<br />
corporations. However, like most major<br />
erable way to address the concerns re-<br />
corporations that are supposed to pay<br />
Likewise, Citigroup paid 0% Corporate<br />
garding the social safety net than any<br />
a 35% tax on their profits, Wall Street<br />
Income Tax on $4 billion profits while<br />
raise in taxes on an American popula-<br />
banks pay almost none of the Corporate<br />
Wells Far-go paid nothing for at least<br />
tion that is already taxed to death or<br />
Income Tax. That is, many of them pay<br />
the years 2008, 2009, and 2010. Tarpley<br />
by the dismantling of the social safety<br />
nothing at all.<br />
writes:<br />
net system.<br />
For instance, according to statistics<br />
Another spectacular example of Wall<br />
This new method of support for the<br />
procured by Senator Bernie Sanders<br />
Street’s tax dodges is General Electric,<br />
social safety net system is as simple as<br />
of Vermont and Citizens for Tax Justice,<br />
which long ago ceased being an indus-<br />
the Wall Street Sales Tax, a move which<br />
Goldman Sachs, one of the most infa-<br />
trial corporation and became a hedge<br />
would solve both the “crisis” of the<br />
mous zombie institutions, only paid<br />
fund in drag, built around its financial<br />
WORLD AUSTERITY REPORT<br />
social safety net as well as the general<br />
budgetary crisis at all levels of government<br />
in the United States of America.<br />
The Wall Street Sales Tax should be<br />
applied at the rate of 1% to financial<br />
market trans-actions such as stocks,<br />
bonds, flash trading, e-trading, highfrequency<br />
trading, debt instruments,<br />
and the notional value of derivatives. A<br />
reasonable exemption of $1 million per<br />
person per year should be enacted in<br />
1.1% tax on its total profits in 2008,<br />
the year of the <strong>world</strong>wide derivatives<br />
crisis. Although Goldman Sachs actually<br />
earned a profit of $2.3 billion that<br />
year, it also received a $278 million tax<br />
refund from the IRS.<br />
As Webster Griffin Tarpley points out:<br />
This scandalous situation did not prevent<br />
Lloyd Blankfein, Goldman’s boss,<br />
arm, GE Capital.<br />
GE racked up <strong>world</strong>wide profits of<br />
$14.2 billion in 2010, but managed to<br />
avoid the federal corporate in-come<br />
tax completely. Instead, GE accountants<br />
were able to secure a $3.2 billion<br />
refund from the US Treasury. This<br />
happened even though GE was laying<br />
off 21,000 US workers and closing 20<br />
US factories over the years 2007-2009.<br />
order to prevent the placement of taxes<br />
from appearing on CBS television to<br />
on individuals who shift around per-<br />
demand draconian cuts in the meager<br />
And these results were typical of GE’s<br />
sonal financial assets or make invest-<br />
entitlement payments received by the<br />
performance over the most recent<br />
ments for their 401(k) or other retire-<br />
poor, the sick, and the old.<br />
decade: GE paid a 2.3% tax rate on<br />
ment account. The 1% tax should be paid<br />
profits during 2002-2011, and suc-<br />
by the seller of the instrument, not the<br />
In 2010, Bank of America (BoA)also<br />
ceeded in paying zero federal corpo-<br />
buyer, and the proceeds accrued from<br />
paid no Corporate Income Tax even<br />
rate income tax in 2002, 2008, 2009,<br />
27
and 2010 (See Citizens for Tax Justice<br />
and Jake Tapper, “General Electric Paid<br />
No Federal Tax-es in 2010,” ABC News,<br />
March 25, 2011).<br />
The scandal is especially despicable<br />
because GE boss Jeffrey Immelt was<br />
serving as Obama’s business liaison<br />
in his capacity as Chairman of the<br />
White House Council on Jobs and<br />
Competitiveness. Rapacious predators<br />
like Immelt apparently believe that<br />
good corporate citizenship starts with<br />
evading all taxes.<br />
All of this open tax evasion is, of course,<br />
contrasted by the meticulous methodology<br />
used to fleece the average American<br />
taxpayer for every single cent possible.<br />
However, aside from the obvious person-al<br />
income/corporate income discrepancy,<br />
Wall Street banks also pay no<br />
sales tax on their immense number of<br />
transactions that occur in the form of<br />
derivatives, stocks, bonds, debt instruments,<br />
and other so-called “financial<br />
products.”<br />
derivatives which cross the exchanges<br />
in New York and Chicago, as well as the<br />
over-the-counter derivatives which are<br />
contracted behind the scenes. If sacrifices<br />
are required, this is obviously the<br />
place to start.<br />
Obviously, when the suggestion is made<br />
regarding the implementation of a tax<br />
on such a wide variety of financial instruments<br />
and such a powerful cartel<br />
of corporate and banking interests, the<br />
next logical question turns toward the<br />
possibility and method of successful<br />
implementation.<br />
Thus, it is important to note that between<br />
the years of 1914 and 1966,<br />
the U.S. Federal government did<br />
successfully implement a financial<br />
transaction tax of between 0.04%<br />
(0.0004) and 0.1% (0.001). Although<br />
the amount of tax percentage is much<br />
smaller than the 1% being discussed in<br />
this article, the ability of the Federal<br />
government to operate and maintain<br />
such a tax is clearly demonstrated.<br />
Indeed, current tax policy shows that<br />
the U.S. Federal government is still<br />
capable of maintaining a tax on financial<br />
transactions as the Section 31 fee, a<br />
minute tax of 0.0034% on stock transactions<br />
is used to fund the Securities and<br />
Exchange Commission (SEC). In 1998,<br />
this amazingly small tax brought in $1.8<br />
billion to fund the SEC.<br />
This, of course, is in direct contrast to<br />
the fact that individual Americans pay<br />
any-where from 6% to 12% on transactions<br />
involving a variety of goods ranging<br />
from entertainment to necessity,<br />
even groceries in some areas, depending<br />
on the state. As Tarpley writes in<br />
this regard:<br />
This outdated approach goes back to<br />
when the stock and bond markets were<br />
considered capital markets. But today,<br />
in the ear of high frequency trading<br />
and flash trading in which one computer<br />
can carry out a million traders<br />
per second using algorithms, we are obviously<br />
dealing with a high-tech gambling<br />
casino that poses grave dangers<br />
to the public.<br />
In short, the greatest single flow of untaxed<br />
money is the stocks, bonds, and<br />
New York State even has a very small<br />
financial transaction tax on their law<br />
books that brings in close to $25 billion<br />
per year according to some estimates<br />
but, ever since the 1970s, all of<br />
the money earned by this tax is given<br />
straight back to the Wall Street bankers<br />
due to threats made by financial<br />
institutions that they will move their<br />
operations to another state in order to<br />
avoid the tax. It should be pointed out,<br />
of course, that a nationwide Federal tax<br />
Trader on the floor of the New York Stock<br />
Exchange (NYSE)<br />
Photo: AP<br />
WORLD AUSTERITY REPORT<br />
28
would effectively neutralize any threats<br />
by financial institutions to move outside<br />
of New York or any other state in order<br />
to negotiate lower or no taxation.<br />
Another important point is that, for the<br />
most part, financial instruments such<br />
as stocks, bonds, futures, options, and<br />
indices (and virtually all of their other<br />
various incarnations and combinations)<br />
are traded through public exchanges.<br />
Thus, they can easily be tracked for the<br />
purposes of taxation.<br />
Yet, as Webster Tarpley points out, “the<br />
real mother lode of transactions is to be<br />
found in the area of derivatives.”<br />
Unfortunately, because the main applicable<br />
legislation in regards to “over-thecounter<br />
derivatives,” the Dodd-Frank<br />
Bill, fails to force the institutions and<br />
individuals engaging in such trades to<br />
<strong>report</strong> them, it is somewhat harder to<br />
determine the actual amount of these<br />
instruments. This is also partly because<br />
“over-the-counter derivatives” “take<br />
the form of private contracts between<br />
counterparties.”<br />
stand “in excess of two quadrillion dollars<br />
in notional value.” Other estimates<br />
put the notional value of derivatives in<br />
the range of six to seven quadrillion<br />
dollars due to the fact that these derivatives<br />
are constantly being bought<br />
and sold.<br />
The revenue that would be generated<br />
from a 1% Wall Street Sales Tax could be<br />
expected to reach a figure of approximately<br />
tens of trillions of dollars.<br />
Of course, any new form of taxation on<br />
the trading of financial products would<br />
more likely than not cause the amount<br />
of trading currently taking place to go<br />
down ) with some possibly ceasing altogether).<br />
Even in this event, it is reasonable<br />
to assume that the Wall Street Sales<br />
Tax would still provide several trillion<br />
dollars in tax revenue.<br />
2) The Wall Street Sales Tax Discourages<br />
Dangerous Forms of Speculation<br />
As mentioned above, the implementation<br />
of a 1% Wall Street Sales Tax would<br />
naturally cause the amount of trading<br />
of the affected financial instruments<br />
to go down. It is even possible that the<br />
trading of some exotic forms of these<br />
instruments may cease altogether. But,<br />
while this may seem to present a problem<br />
in terms of reduced tax revenue,<br />
this should largely be the only concern.<br />
Even so, as mentioned previously, the<br />
expected revenue of the 1% Wall Street<br />
Sales Tax is still in the figure of several<br />
trillion dollars.<br />
WORLD AUSTERITY REPORT<br />
Thus, due to the lack of reliability on<br />
the exact number of these instruments,<br />
it should be specified that the 1% Wall<br />
Street Sales Tax should be paid by the<br />
seller, not the buyer. Furthermore,<br />
it should be specified that any overthe-counter<br />
derivatives contracts for<br />
which the 1% Wall Street Sales Tax has<br />
not been paid cannot be enforced in<br />
a court of law. This would effectively<br />
mean that, if the seller of an over-thecounter<br />
derivative does not pay the 1%<br />
Wall Street Sales Tax on his product,<br />
the buyer that loses out on the derivative<br />
would then be able to legally back<br />
out of the deal with the backing of the<br />
law, thus turning the tax-dodging seller<br />
into the ultimate loser.<br />
Still, it is fundamentally important to<br />
understand that the reduction in derivatives<br />
trading, computer-based transactions,<br />
and speculation is by no means a<br />
negative development. After all, it was<br />
derivatives that were responsible for<br />
the 2008 financial crisis that has spread<br />
and continues to spread concurrently<br />
across the entire globe. Financial speculation<br />
has been responsible for the rise<br />
in consumer prices in staple goods and<br />
as well as those goods that have become<br />
virtual necessities in today’s society. In<br />
Dr. Webster G. Tarpley, economist,<br />
historian, author, activist, journalist,<br />
lecturer, multilingual, Fulbright Scholar.<br />
According to Webster Tarpley’s estimates,<br />
<strong>world</strong> derivatives currently<br />
29
addition, debt instruments have been<br />
instrumental in attacking the currency<br />
and economic stature of sovereign<br />
nations. 1<br />
Thus, if the trends of speculation, derivatives<br />
trading, computerized trans-<br />
the U.S. Constitution clearly enumer-<br />
actions, and debt instruments are re-<br />
ates the ability of Congress to impose<br />
duced or even eliminated, one would<br />
such taxes. It states:<br />
be hard-pressed to provide a clear and<br />
convincing argument outside of the<br />
The Congress shall have Power to lay<br />
undying respect and love for the U.S.<br />
most militant ideology that could jus-<br />
and collect Taxes, Duties, Imposts and<br />
Constitution should recognize the 1%<br />
tify their return. Even in the unlikely<br />
Excises, to pay the Debts and provide<br />
Wall Street Sales Tax as an opportunity<br />
event that projected tax revenue does<br />
for the common Defence and general<br />
to both reduce the Federal and State<br />
not reach the levels estimated in this ar-<br />
Welfare of the United States; but all<br />
budget deficit as well as the influence of<br />
ticle and by economists such as Webster<br />
Duties, Imposts and Excises shall be<br />
Wall Street in a clearly Constitutional<br />
Tarpley, the reduction in the financial<br />
uniform throughout the United States.<br />
manner.<br />
instruments listed above should itself<br />
be considered a positive outcome.<br />
Thus, the 1% Wall Street Sales Tax exists<br />
4) The 1% Wall Street Sales Tax Largely<br />
well within Constitutional boundar-<br />
Solves the Budget Deficit and Social Safety<br />
As Tarpley writes:<br />
ies. Any challenges to the 1% Wall Street<br />
Net Funding Crisis<br />
Sales Tax would effectively seal their<br />
The Congressional Budget Office has<br />
A society which taxes the sales of indus-<br />
own fate before getting off the ground<br />
estimated the U.S. Federal Budget<br />
trial manufacturing and agricultural<br />
due to hundreds of years of legal prece-<br />
Deficit at the end of 2012 at close to $1.1<br />
products, but which establishes a tax<br />
dent and clearly defined (in this regard)<br />
Trillion dollars. In addition, each U.S.<br />
exemption for speculation, derivatives,<br />
cases of imposed taxation. In the case<br />
state maintains a budget deficit (with<br />
and financial services has tilted the<br />
of the 1% Wall Street Sales Tax, there<br />
the exception of Alaska, Arkansas,<br />
playing field in favor of a parasitical<br />
is no legitimate Constitutional or legal<br />
Montana, North Dakota, West Virginia,<br />
casino economy of the type which has<br />
argument against its implementation.<br />
and Wyoming) measured in the mil-<br />
historically led to widespread immis-<br />
lions to billions of dollars. As <strong>report</strong>ed<br />
eration and recurring financial panics.<br />
Any individual that argues against the<br />
by Stateline, the news <strong>report</strong>ing agency<br />
implementation of the 1% Wall Street<br />
of the Pew Charitable Trusts, the total<br />
3) The 1% Wall Street Sales Tax Is<br />
Sales Tax, without subsequently argu-<br />
of all State budget deficits combined<br />
Completely Constitutional<br />
Acknowledging the many legitimate<br />
issues taken with the Income Tax by individuals<br />
across the political spectrum,<br />
the fact is that the Constitutional question<br />
of taxation is not applicable to the<br />
1% Wall Street Sales Tax. Although the<br />
16th Amendment clearly allows for the<br />
collection of an income tax, there does<br />
exist some controversy as to whether<br />
or not the individual is required to pay<br />
ing for the removal of all forms of taxation,<br />
is essentially lobbying for a double<br />
standard between individual citizen<br />
la-borers and Wall Street Parasites. To<br />
agitate against the Wall Street Sales Tax<br />
is to agitate for taxation on the transactions<br />
of the poorest citizen while, at<br />
the same time, providing a free ride for<br />
rich bankers and vampiric financial institutions.<br />
This agitation, if realized,<br />
would entirely remove the burden of<br />
equals $111.9 billion.<br />
However, while a $1.112 trillion<br />
American budget deficit at first sounds<br />
like an impossible number to bring<br />
under control, one must bear in mind<br />
the estimates of just the initial revenue<br />
from the 1% Wall Street Sales Tax. As<br />
mentioned above, such proceeds are<br />
conservatively projected to reach the<br />
level of several trillions of dollars. More<br />
WORLD AUSTERITY REPORT<br />
this tax by law. Setting that issue aside,<br />
funding the Federal and State govern-<br />
optimistic and even per-haps more ac-<br />
however, there is no controversy sur-<br />
ments off the shoulders of the wealthy<br />
curate estimates suggest revenue in the<br />
rounding the Constitutional applica-<br />
Wall Street bankers and thrust it onto<br />
range of tens of trillions of dollars.<br />
tions of the various Sales Taxes cur-<br />
the backs of the poor, working, and<br />
rently in effect.<br />
middle class alone.<br />
With proceeds of these numbers divided<br />
evenly between the Federal govern-<br />
ARTICLE 1, SECTION 8, CLAUSE 1 of<br />
Those individuals who state their<br />
ment and the States, both the Federal<br />
30
and State budget deficits could be eliminated<br />
after the first intake of revenue<br />
is completed, all without cutting and<br />
gutting the social safety net, reducing<br />
the desired results and moral implica-<br />
military spending, or slowing the oper-<br />
tions of such a program, Austerity mea-<br />
ation of government agencies. With the<br />
sures are inherently foolish in terms<br />
proceeds of the 1% Wall Street Sales Tax<br />
of reducing deficits and funding pro-<br />
flooding the coffers of Federal, State,<br />
grams in that this method has failed on<br />
one being proposed by various sources<br />
and Local governments, proponents of<br />
every occasion where it has been imple-<br />
such as David Altman of the New York<br />
Austerity measures could then be seen<br />
mented. In reality, Austerity measures<br />
Times, presents numerous undesirable<br />
as the irrational pro-monopolistic agi-<br />
only create bigger budget deficits and<br />
effects in addition to falling short of at-<br />
tators that they are.<br />
financial crises in the next fiscal year.<br />
taining any real revenue. Any program<br />
Regardless of the success or failure of<br />
that would require such an extensive<br />
5) The 1% Wall Street Sales Tax Is The Best<br />
Austerity, however, such methods are<br />
census of personal wealth and taxable<br />
Option<br />
the antithesis to those who desire a<br />
assets is not only bound to face innu-<br />
Broadly speaking in terms of the social<br />
rational, civilized society. Any discus-<br />
merable Constitutional challenges, it<br />
safety net programs and Federal and<br />
sion of Austerity must immediately be<br />
will require a virtual police state to en-<br />
State budget deficit issues being dis-<br />
dismissed as foolishness and insanity.<br />
force and administer. Regardless, it is<br />
cussed during Congressional side-<br />
also a fact that wages are much harder<br />
shows such as the “Sequestration,” the<br />
Likewise, any discussion of raising the<br />
to hide from government investigation<br />
1% Wall Street Sales Tax is not only<br />
income tax or the implementation of<br />
than other forms of income and assets<br />
the best option in terms of conve-<br />
a Federal Sales Tax (other than the 1%<br />
such as those favored by rich elitists<br />
nience, fairness, and positive results,<br />
Wall Street Sales Tax) should immedi-<br />
who are able to hide their assets away<br />
WORLD AUSTERITY REPORT<br />
it is the only method capable of actually<br />
achieving the goals for which it is<br />
created. Competing approaches either<br />
fail to achieve the necessary revenue,<br />
levy unfair taxation, or produce results<br />
which are entirely counter to any rationally<br />
desired outcome.<br />
The most obviously abhorrent method<br />
of reducing or eliminating the budget<br />
deficit and managing the funding of<br />
ately be abandoned. Higher taxation on<br />
an already overtaxed citizenry will only<br />
serve to reduce the amount of economic<br />
activity in the long run and to further<br />
burden those suffering the most in what<br />
can only be described as a <strong>world</strong>wide<br />
economic depression. Propositions such<br />
as the Fair Tax should be included in<br />
this delineation as they are by nature<br />
regressive taxation and impose heavier<br />
burdens on the poor, working, and<br />
in various offshore accounts, funds,<br />
and foundations, thus continuing<br />
to leave massive loopholes for Wall<br />
Street parasites and wealthy financiers<br />
while cracking down upon the average<br />
American worker. Even if the Wealth<br />
Tax is able to accrue the optimum<br />
amount of money its proponents argue<br />
it can deliver, it pales in comparison to<br />
the 1% Wall Street Sales Tax in that it<br />
could not exceed over several hundred<br />
the social safety net is that of Austerity.<br />
lower classes. These types of taxation<br />
billion dollars of yearly revenue. The 1%<br />
This approach is, essentially, the cut-<br />
cut only into the amenities of the rich<br />
Wall Street Sales Tax on the other hand,<br />
ting of services, government labor, and<br />
but cut deeply into the necessities of the<br />
is estimated to rake in several trillion<br />
government spending which is more<br />
poor despite tools like the “prebate” dis-<br />
in revenue at the very least.<br />
often than not accompanied by an in-<br />
cussed by proponents of the Fair Tax.<br />
crease in the taxes of the lower, work-<br />
It should also be pointed out that the 1%<br />
ing, and middle class. Even aside from<br />
In the same vein, a Wealth Tax, like the<br />
Wall Street Sales Tax is the only option<br />
31
that actually discourages dangerous<br />
speculation and encourages tangible<br />
production.<br />
CONCLUSION<br />
of a police state at home. In addition,<br />
the United States faces increasing economic<br />
destabilization, unemployment,<br />
fraudulent food shortage, health and<br />
healthcare crises, environmental deg-<br />
of civilization as we know it and subsequent<br />
imposition of Fascism on a global<br />
scale.<br />
As Greece, Spain, Ireland, and many<br />
WORLD AUSTERITY REPORT<br />
radation, and the ultimate collapse of<br />
others continue to be hammered<br />
The United States now finds itself in an<br />
the availability and the ability to pro-<br />
by Austerity measures, the United<br />
unmistakable crisis situation. Caught in<br />
vide for the basic necessities of life. In<br />
States is falling prey to the same phi-<br />
the grips of a <strong>world</strong>wide economic de-<br />
short, the United States (along with<br />
losophies and political smokescreens.<br />
pression, the U.S. now faces the perils of<br />
the rest of the <strong>world</strong>) is facing the very<br />
Yet, the United States stands at an<br />
imperialism abroad and the imposition<br />
real possibility of a complete collapse<br />
even greater disadvantage than its<br />
32
European counterparts due to the fact<br />
that Americans are unfortunately still<br />
unable to understand the nature and<br />
dangers of Austerity. Thus, the dismantling<br />
of what was once the economic<br />
powerhouse of the <strong>world</strong> is taking place<br />
The 1% Wall Street Sales Tax is the sole<br />
virtually unbeknownst to those who<br />
method that can attract revenue in the<br />
stand to become its greatest victims.<br />
range of tens of trillions of dollars ca-<br />
SOLUTIONS<br />
pable of fully funding the social safety<br />
net and the U.S. government as well<br />
inject and promote economic solutions<br />
based upon the American System of<br />
as effectively eliminating the budget<br />
Economics, independent of the false<br />
In relation to the crisis of the social<br />
deficit at the Federal and State levels.<br />
left/right paradigm and the two existing<br />
safety net as well as the U.S. and State<br />
All of this while discouraging danger-<br />
major parties.<br />
budget deficit, that solution exists in the<br />
ous forms of speculation and deriva-<br />
form of the 1% Wall Street Sales Tax.<br />
tives trading. Contrary to many other<br />
As Paul Adams writes for Activist Post:<br />
proposals being floated in the public<br />
Most of the current American finan-<br />
arena by often questionable sources,<br />
Contrary to what many popular and<br />
cial quagmire can be traced back to<br />
the 1% Wall Street Sales Tax is entirely<br />
pessimist economists say, the U.S. and<br />
the antics and schemes of Wall Street<br />
Constitutional.<br />
<strong>world</strong> economies can return to boom-<br />
at some point or other. The lack of adequate<br />
funding for the U.S. government<br />
can be directly related to the fact that<br />
SUPPORT THE 1% WALL<br />
STREET SALES TAX<br />
ing economic growth within two or<br />
three months. Contrary to what the<br />
Malthusian global elites espouse, there<br />
the burden of funding falls on the backs<br />
can be plenty of food, clothing and<br />
WORLD AUSTERITY REPORT<br />
of the poor, working, and middle class<br />
while Wall Street pays nothing. This<br />
free ride afforded to Wall Street must<br />
end.<br />
While the concept of taxing Wall Street<br />
turnover has been circulating for some<br />
time, the credit for the revision, fine<br />
tuning, and detailed articulation of the<br />
1% Wall Street Sales Tax should largely<br />
be given to Webster Griffin Tarpley.<br />
Currently agitation for the 1% Wall<br />
Street Sales Tax is being undertaken<br />
most notably by the United Front<br />
Against Austerity, a coalition of a wide-<br />
shelter for everyone once we support<br />
skilled labor and the production of real<br />
goods rather than cancerous financial<br />
speculation.<br />
Indeed, the solutions are there for the<br />
taking. However, since the political will<br />
does not currently exist among elected<br />
politicians and the Corporate Govern<br />
ment system obviously does not want<br />
to see them implemented, it is up to the<br />
ranging organizations attempting to<br />
American people to demand that the<br />
1% Wall Street Sales Tax immediately<br />
be enacted.<br />
Idle spectatorship is no longer an<br />
option. Active participation is the only<br />
legitimate path to take.<br />
33
EDUCATION<br />
Educators and education are under a relentless barrage of scams and<br />
undermine the foundation of public schools, a fundamentally sound<br />
Democratic American Institution. Ingrained in “education reform“<br />
are curriculums of indoctrination , union-busting charter schools,<br />
and high-powered testing that lead to faulty data and segregation.<br />
Alleviating policies must be adopted around the wellbeing of children<br />
and teachers.
An Introduction To “Education<br />
Reform”<br />
Polly Cooke Hughes<br />
n the name of reform, the democratic,<br />
public institution of education<br />
is being reduced to a narrow<br />
curriculum of national standards that<br />
have coerced American States into accepting<br />
them by claiming false suc-<br />
President George Bush’s No Child<br />
cesses and tying them to much-needed<br />
Left Behind initiative (NCLB), which<br />
federal funding. This “reform” is unfair<br />
has proven to simply be a utopia for<br />
to all but the privileged, and it is funded<br />
education. NCLB designated that<br />
typical classroom by placing them in<br />
and pushed unabashedly by wealthy<br />
every child, no matter what age or<br />
smaller classrooms and teaching them<br />
corporations and individuals to estab-<br />
skill level, with our without disability<br />
by specialized teachers. The charters<br />
lish for-profit schools that have been<br />
or English–speaking limitations, must<br />
would remain within the public school,<br />
filled with children who are over-tested.<br />
perform at 100% by the end of 2010.<br />
offer non-traditional teaching to help<br />
Just a few of the many facets of the im-<br />
Of course, the rhetoric of leaving no<br />
students with disabilities or behavior-<br />
plementation of this “reform” include:<br />
child behind sounds hopeful and pro-<br />
al issues or with low English-speaking<br />
ductive; however, we all know each of us<br />
skills to become successful, and would<br />
1) Common Core national standards<br />
has strengths, weaknesses, and varied<br />
be accountable to the public, just as<br />
2) Charter Schools and Vouchers<br />
skill levels that prevent the majority of<br />
public schools are accountable (Reign<br />
3) No Child Left Behind<br />
us from performing at 100% in all con-<br />
of Error, Diane Ravitch, 2013). 2<br />
4) Race to the Top<br />
tent areas: math, English/language arts,<br />
science, and social studies. NCLB set<br />
Prof. Budde’s idea was hijacked quickly<br />
The task of writing national standards,<br />
up American public schools for abject<br />
as charters were introduced, not to help<br />
currently for math and English/lan-<br />
failure. This “failure” of schools was a<br />
struggling students, but to be public or<br />
WORLD AUSTERITY REPORT<br />
guage arts, began in 1996 and the<br />
Common Core standards adoption by<br />
States and implementation was completed<br />
by 2010. The National Education<br />
Association, by federal law, could not be<br />
involved; however, the standards were<br />
written by the National Association of<br />
Governors, led by then Governor Jeb<br />
Bush, and was heavily funded by the<br />
Gates Foundation, the Walton Family<br />
Foundation, the Eli Broad Foundation,<br />
setup for the encroaching destruction<br />
via the Common Core, charter schools,<br />
vouchers, for-profit training companies,<br />
and billionaires (such as Bill Gates<br />
who has been an outspoken proponent)<br />
intent on privatizing schools for tremendous<br />
profits. 1<br />
Charter schools have been wildly debated<br />
by State Legislatures, teachers’<br />
unions, local school boards, and par-<br />
private schools with the objective of<br />
making money, and lots of it! Charters<br />
were set up as privatized, for-profit<br />
businesses at the expense of taxpayers,<br />
students, teachers, administrators,<br />
parents, and school boards. Private<br />
and public charters receive taxpayer<br />
funding, teachers do not always have<br />
to be certified by the Department of<br />
Instruction, they are not accountable<br />
to a locally elected school board—they<br />
and many other think tanks, corporations,<br />
and billionaires looking to<br />
ents over the past few years. The idea of<br />
charter schools was first introduced by<br />
basically do not have to conform to the<br />
legalities of public schools. 3<br />
broaden their power and assets by turning<br />
public education into a for-profit<br />
venture.<br />
Ray Budde, University of Massachusetts<br />
professor, et.al. in 1988. The idea was<br />
that charter schools would be estab-<br />
WHAT ABOUT THE<br />
VOUCHERS?<br />
lished to assist public schools by teach-<br />
Charter schools often provide vouchers<br />
Common Core was a result of then<br />
ing students who did not do well in a<br />
to under-privileged children in urban<br />
35
American classroom.<br />
Photo:AP David J Phillip<br />
settings, admit special education<br />
children, poor/low income children,<br />
and children with behavioral issues.<br />
How-ever, research has proven that the<br />
majority of charter schools will:<br />
grant money. Since so much of federal<br />
1) Not hire enough or any special educa-<br />
and state funding for public schools has<br />
tion teachers<br />
been cut, most states have been eager<br />
to apply for this grant. However, in<br />
2) Suspend or expel behaviorally chal-<br />
order to receive the grant, a State must<br />
lenged children after even a minor<br />
adopt the Common Core standards in<br />
infraction<br />
its entirety.<br />
3) Keep only students with high enough<br />
Each State applies and competes for this<br />
skill levels to pass<br />
grant and, once received the Common<br />
testing has been tied to teacher evalu-<br />
Core demands spending in excess of the<br />
4) Hire inexperienced, non-certified<br />
ations, which alone is unfair as teach-<br />
grant funds as each child is required<br />
teachers and overuse computers for<br />
ers have a wide range of students who<br />
to have a computer, each child must<br />
instruction<br />
cannot pass all the tests. Just as No<br />
take the multitude of tests online using<br />
Child Left Behind actually did the op-<br />
materials from Pearson Education or<br />
5) Pay their owners/presidents exorbitant<br />
posite and left many children behind<br />
PARCC that must be upgraded every<br />
salaries (e.g., Eva Moskowitz, President<br />
to flounder in this utopia, the testing<br />
three years. This puts a tremendous<br />
of Success Academy Charters, NYC earns<br />
annual salary of $475,000.) 4<br />
Charter schools are not more successful<br />
and have not proven to be better<br />
equipped to meet the needs of all children,<br />
but those pushing for the destruction<br />
of public schools continue to spew<br />
rhetoric and propaganda.<br />
THE STANDARD-BEARER<br />
OF OVERBEARING<br />
STANDARDS<br />
To be in compliance of the Common<br />
requirements have reduced children<br />
to robots memorizing data and regurgitating<br />
the information. This does not<br />
promote critical thinking or analysis<br />
skills, and this type of teaching and<br />
training has caused more students to<br />
experience anxiety and panic attacks,<br />
teachers are being unfairly terminated<br />
(when all students do not pass tests) and<br />
administrators have been dictated to<br />
about procedures, training, and teaching.<br />
Public schools have been closed as<br />
they are declared “failing” only to be<br />
replaced by for-profit charter schools. 5<br />
financial burden on schools, but especially<br />
on rural and poor school districts!<br />
I have really just scratched the surface<br />
and generally introduced you to<br />
the privatization scheme of our public<br />
schools. For the next World Austerity<br />
Report, I will provide deeper analysis<br />
of the roles played by Pearson<br />
Education Company, Microsoft, Teach<br />
for America, and the many foundations<br />
and individuals (i.e., Bill Gates, Arne<br />
Duncan, Michelle Rhee, et.al) that have<br />
poured billions of dollars and/or time<br />
WORLD AUSTERITY REPORT<br />
Core standards, schools must adopt the<br />
into this scheme along with an update<br />
standards in their entirety, make no<br />
To complicate matters, President<br />
on actions many States, unions, orga-<br />
changes to the standards, and apply the<br />
Obama has continued this privatiza-<br />
nizations, and individuals are taking to<br />
myriad of testing to all students from<br />
tion scheme by demanding that states<br />
stop this profiteering.<br />
kindergarten through 12th grade. The<br />
compete for the Race to the Top federal<br />
36
Recommended Reading<br />
Reign of Error by Diane Ravitch, copyright<br />
2013<br />
WORLD AUSTERITY REPORT<br />
http://edushyster.com/ (a blog by Jennifer<br />
Berkshire)<br />
http://preaprez.wordpress.com/ (a blog by<br />
Fred Klonsky)<br />
http://dianeravitch.net/category/<br />
education-reform/<br />
Footnotes<br />
1. Hughes, Polly. “Common Core: Walmart’s<br />
Answer to Education in the Age of<br />
Austerity.” AgainstAusterity.org. United<br />
Front Against Austerity, 17 July 2013. Web.<br />
Mar. 2014. http://against<strong>austerity</strong>.org/<br />
article/common-core-walmarts-answereducation-age-<strong>austerity</strong><br />
2. Ravitch, Diane. Reign of Error: The<br />
Hoax of the Privatization Movement and<br />
the Danger to America’s Public Schools.<br />
Print. Reign of Error by Diane Ravitch<br />
3. Bidwell, Allie. “AFT, Advocacy Group<br />
Want More Accountability for Charters.”<br />
US News. U.S.News & World Report, 26<br />
Feb. 2014. Web. 25 Mar. 2014. http://www.<br />
usnews.com/news/articles/2014/02/26/<br />
teachers-union-advocacy-group-call-formore-charter-school-accountability<br />
4. Monahan, Rachel. “Top 16 NYC Charter<br />
School Executives Earn More than<br />
Chancellor Dennis Walcott.” NY Daily<br />
News. New York Daily News, 26 Oct. 2013.<br />
Web. 25 Mar. 2014 http://www.nydailynews.com/new-york/education/top-16-nyccharter-school-execs-out-earn-chancellordennis-walcott-article-1.1497717<br />
5. Schiffman, Lizzie. “Chicago<br />
Charter Schools Return Erratic State<br />
Test Results.” The Huffington Post.<br />
TheHuffingtonPost.com, 30 Nov. 2011. Web.<br />
25 Mar. 2014. http://www.huffingtonpost.<br />
com/2011/11/30/chicago-charter-schoolsr_n_1120683.html<br />
37
New York City: Propaganda<br />
Campaign Spends Millions to<br />
Save Charters<br />
Polly Cooke Hughes<br />
losing public schools and opening<br />
private charter schools are<br />
very popular in many major<br />
American cities: Philadelphia, D.C.,<br />
New Orleans, St. Louis, Chicago, New<br />
York, to name a few. Earlier last year,<br />
CHARTERS: PRIVATE<br />
INTERESTS, PUBLIC FUNDS<br />
then Mayor Rahm Emmanuel closed<br />
many Chicago schools, forcing chil-<br />
Private charters were opened in public<br />
of her schools AND he intends to charge<br />
dren to walk through neighborhoods<br />
schools, provided with space with-<br />
rent! The horror!<br />
of gangs to attend schools that were<br />
out paying rent, given public fund-<br />
hostile rivalries. Teachers fought back.<br />
ing, hired non-educators to teach<br />
So, what did Ms. Moskowitz do? With<br />
Students fought back – hard. But,<br />
and to run the schools while paying<br />
the help of Gov. Cuomo and several<br />
Emmanuel won and closed 47 public<br />
exorbitant salaries to the presidents<br />
wealthy benefactors, a whopping $3.6<br />
schools in June 2013.<br />
of the charters. Just look at this one:<br />
million has been spent on an ad cam-<br />
teacher/union-hating Eva Moskowitz,<br />
paign attempting to paint de Blasio as<br />
Meanwhile, a fight over public schools<br />
CEO of the Success Academy Charter<br />
a horrible mayor who is a racist and<br />
versus charter schools was brewing in<br />
Schools, earns a whopping $475,000<br />
wants to harm the poor, the down-<br />
New York City, a city that elected a new<br />
annual salary. Success Academy had<br />
trodden children in NYC! Two of the<br />
mayor last November, Bill de Blasio,<br />
22 charter schools when de Blasio was<br />
charters de Blasio denied were not even<br />
who deceptively ran as a progressive<br />
Democrat. On the education front, he<br />
ran on a promise of preschool education<br />
for every child in NYC paid for<br />
by a small (actually, tiny) tax on the<br />
wealthiest. That won him over by many<br />
teachers, their unions, and education<br />
activists.<br />
Former Mayor Bloomberg was on the<br />
same path as Rahm Emmanuel: de-<br />
elected. All 22 of these charters were<br />
co-located in public schools and paid<br />
no rent while receiving public taxpayer<br />
funding which, in turn, deprived public<br />
schools of needed funding.<br />
There are approximately 420,000<br />
school age children in New York City;<br />
of those, the 22 Success Academy charters<br />
taught only about 6,700 or .016% of<br />
all the school-age children!<br />
open, so there were no students to be<br />
hurt by an eviction from their schools,<br />
as the ads claim.<br />
Who won? According to The New<br />
York Times March 30, 2014 article<br />
“State Protections for Charter Schools<br />
Threaten de Blasio’s Education Goals”<br />
by Javier C. Hernandez, Cuomo and Eva<br />
won and the children lost.<br />
WORLD AUSTERITY REPORT<br />
clare the failure of public schools, cut<br />
Gov. Andrew M. Cuomo and<br />
funding to public schools, then close<br />
Last month, a firestorm was unleashed<br />
Republicans in the State Senate seized<br />
public schools and open charter schools<br />
when the mayor failed to renew three<br />
on the momentum, and on Saturday<br />
to “supposedly” provide the poor, the<br />
(yes, just three) of Eva Moskowitz’s char-<br />
they announced an agreement that<br />
minorities, the disabled with better op-<br />
ters. She was and is furious. Governor<br />
would provide charter schools in New<br />
tions and “choice.” Michael Bloomberg<br />
Cuomo, a Wall Street Democrat, was<br />
York City some of the most generous<br />
loved charter schools.<br />
furious. How dare he not renew all 22<br />
protections in the country.<br />
38
WORLD AUSTERITY REPORT<br />
Under the deal, the city would be required<br />
to find space in public buildings<br />
for charter schools, which operate independently<br />
of the school district but<br />
receive public funds. If the city could<br />
not, it would have to cover the cost of<br />
renting private space, up to $40 million.<br />
Charter schools could challenge<br />
the city’s selection of space through an<br />
arbitration process.<br />
TREAD CAREFULLY<br />
DEBLASIO<br />
Now, I’m not all that fond of Bill de<br />
Blasio as he has proven to be a faux<br />
progressive. The Tax Wall Street Party<br />
had a candidate, Randy Credico, who<br />
ran on a platform of equality and civil<br />
rights. Credico would have fought hard<br />
to end the charter school takeover, and<br />
de Blasio made many misstatements<br />
about his “progressive” stances. At best,<br />
he’s been on the edge of issues and his<br />
appointment of the “stop and frisk”<br />
commissioner William Bratton was a<br />
hugely disappointing act of betrayal to<br />
his many minority supporters.<br />
Mayor de Blasio, though he should<br />
have closed many more charters, at<br />
least took a tiny step toward ridding<br />
NYC of three of the money-sucking,<br />
for-profit charters. But, the $3.6 million<br />
ad campaign against him is working.<br />
New Yorkers now, according to polls,<br />
apparently disapprove of de Blasio’s<br />
handling of education.<br />
We’ll be watching New York City and<br />
Mayor de Blasio very closely. Let’s push<br />
him to keep his campaign promises and<br />
beef up his actions with a steady, dedicated<br />
fight against charters for the most<br />
important reasons that public schools<br />
should be defended: the children.<br />
Sources<br />
Barro, Josh. “Is Bill De Blasio Really That<br />
Left Wing?” Houston Chronicle. Business<br />
Insider, 18 Sept. 2013. Web. 06 Apr. 2014.<br />
Karni, Annie. “Rivalry between Mayor De<br />
Blasio and Eva Moskowitz Stretches beyond<br />
Charter Schools.” NY Daily News. N.p., 16<br />
Mar. 2014. Web. 06 Apr. 2014.<br />
Klein, Rebecca. “Chicago Schools<br />
Transition-Smooth Or Rocky?” The<br />
Huffington Post. TheHuffingtonPost.com,<br />
09 Dec. 2013. Web. 06 Apr. 2014.<br />
Mazelis, Fred. “World Socialist Web Site.”<br />
New York’s “progressive” Mayor De Blasio<br />
Continues. International Com-mittee of the<br />
Fourth International, 3 Feb. 2014. Web. 06<br />
Apr. 2014.<br />
“Mission.” Success Academy. N.p., n.d. Web.<br />
06 Apr. 2014.<br />
“New York QuickFacts from the US Census<br />
Bureau.” New York QuickFacts from the US<br />
Census Bureau. USCB, n.d. Web. 06 Apr.<br />
2014.<br />
Ravitch, Diane. “The “New York Times”<br />
Misses the Big story about Millions for<br />
Charter TV Ad Campaign.” Diane Ravitch’s<br />
Blog. N.p., 20 Mar. 2014. Web. 06 Apr.<br />
2014.<br />
Ravitch, Diane. “Walton Foundation Hires<br />
Bloomberg Deputy.” Diane Ravitch’s Blog.<br />
N.p., 18 Sept. 2013. Web. 06 Apr. 2014.<br />
Torres, Alecy. “De Blasio Chooses Former<br />
Giuliani Police Commissioner to Head<br />
NYPD.” Http://www.nationalreview.<br />
com/. National Review, 5 Dec. 2013. Web.<br />
21 Mar. 2014.<br />
The New York Times: http://www.nytimes.<br />
com/2014/03/31/nyregion/state-protections-for-charter-schools-threaten-deblasios-education-goals.html<br />
Mayor Bill de Blasio puts up a<br />
weak defense against Gov. Cuomo’s<br />
campaign to keep all charters open at<br />
taxpayer expense<br />
39
SNEAK PEEK<br />
The Mass Strike Upsurge and the Impact<br />
on the U.S. Political System.<br />
The Nationalizing of the United States<br />
Federal Reserve<br />
The Need for a Fusion-Based Economy<br />
An update on the Situation in Ukraine and<br />
Crimea<br />
A New Section: Austerity Ghoul of the<br />
Month and More.<br />
WORLD AUSTERITY REPORT<br />
40
LETTERS TO THE EDITOR<br />
Please, feel free to write to us your concerns, comments or questions<br />
to the World Austerity Report team. If you have a message you would<br />
like in our publication contact us at:<br />
WorldAusterityReport@gmail.com
World Austerity Report<br />
CORE TEAM<br />
CREATOR, EDITOR<br />
Sean Yingling<br />
COPY EDITOR<br />
Polly Cooke Hughes<br />
DESIGN EDITORS<br />
Blake Hughes<br />
Stephen Boss<br />
SECTION EDITORS<br />
Alain Lareau<br />
Stephen Boss<br />
Sean Yingling<br />
Blake Hughes<br />
Alain Lareau<br />
Polly Cooke Hughes<br />
Letters to the Chef<br />
Austerity News<br />
International News<br />
Policy & Program<br />
History<br />
Education<br />
ARTICLE CONTRIBUTORS<br />
Chris Brennan<br />
New York City<br />
Polly Cooke Hughes Wisconsin<br />
Alain Lareau<br />
Maryland<br />
Stephen Boss<br />
New York State<br />
Webster G. Tarpley Washington D.C.<br />
Brandon Turbeville South Carolina<br />
TYPEFACES<br />
Libre Baskerville<br />
Open Baskerville<br />
Xolonium<br />
Archivo Narrow<br />
Impallari Type<br />
Issac Moore, James Puckett, Rob Mientjes<br />
Severin Meyer<br />
Omnibus Type<br />
COVER DESIGN<br />
Blake Hughes