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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

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