America: The Farewell Tour
By Chris Hedges
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About this ebook
America, says Pulitzer Prize–winning reporter Chris Hedges, is convulsed by an array of pathologies that have arisen out of profound hopelessness, a bitter despair, and a civil society that has ceased to function. The opioid crisis; the retreat into gambling to cope with economic distress; the pornification of culture; the rise of magical thinking; the celebration of sadism, hate, and plagues of suicides are the physical manifestations of a society that is being ravaged by corporate pillage and a failed democracy. As our society unravels, we also face global upheaval caused by catastrophic climate change. All these ills presage a frightening reconfiguration of the nation and the planet.
Donald Trump rode this disenchantment to power. In his “forceful and direct” (Publishers Weekly) America: The Farewell Tour, Hedges argues that neither political party, now captured by corporate power, addresses the systemic problem. Until our corporate coup d’état is reversed these diseases will grow and ravage the country. “With sharply observed detail, Hedges writes a requiem for the American dream” (Kirkus Reviews) and seeks to jolt us out of our complacency while there is still time.
Chris Hedges
Chris Hedges is a Pulitzer Prize–winning journalist who was a foreign correspondent and bureau chief in the Middle East and the Balkans for fifteen years for The New York Times. He previously worked overseas for The Dallas Morning News, The Christian Science Monitor, and NPR. He is host of the Emmy Award–nominated RT America show On Contact. Hedges, who holds a Master of Divinity from Harvard University, is the author of numerous books, and was a National Book Critics Circle finalist for War Is a Force That Gives Us Meaning. He has taught at Columbia University, New York University, Princeton University, and the University of Toronto. He has taught college credit courses through Rutgers University in the New Jersey prison system since 2013.
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Reviews for America
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What our readers think
Readers find this title to be a deeply insightful and eye-opening exploration of the current state of America. The author delves into the societal issues and the growing divide between the privileged and the marginalized. The book is praised for its ability to shed light on overlooked issues and challenge mainstream narratives. Overall, it is considered an amazing and clarifying read that opens minds to important topics."
- Rating: 3 out of 5 stars3/5Hedges is largely correct in his analysis, but this book stultifieds rather than motivates. It wallows in depravity for page after page, ultimately offer a diagnosis for the problems identified, but a diagnosis that could have been better integrated in the examination of conditions and more closely tied to the prescriptions only offered in a core dump last chapter.
- Rating: 4 out of 5 stars4/5A book that belongs on a list of necessary books to read in these times.
- Rating: 3 out of 5 stars3/5I am VERY sympathetic to this author and his perspective. However, this is not his best work. After a brief beginning that sets some context, he goes into a LONG laundry list of what's wrong in the US. It almost came to feel like he was exploiting the people who shared with him for his political agenda. And I am very sympathetic to his agenda! He needed to have fewer lengthy stories and more analysis as to HOW the system created the current situation. It smacked of everything that is bad is due to "X". I know about how bad things are; I want more explanation of how this came to be. I always think about "Labor & Monopoly Capital". What's at the heart of this current shit show?
- Rating: 5 out of 5 stars5/5Amazing and clarifying book ! It open my mind to issues that are put aside by the mainstream.
- Rating: 4 out of 5 stars4/5Chris Hedges looks deeply into our human and cultural psyche. He writes with intensity and empathy of many of the ills of our current kleptocracy and the dissolution of our human values. He shows a side of America that many fear, ignore and our afraid to face. He brilliantly shows the wide gulf between the haves and have-note.
- Rating: 1 out of 5 stars1/5A card-carrying member of America's ultra-corrupt "news" media spouts the usual cant: that the monumental social problems created by the marriage between Toxic Progressivism and the political parasite class are someone else's fault.
- Rating: 5 out of 5 stars5/5History Catches Up To America and It’s Not PrettyAmerica: The Farewell Tour is a book, but also a symphony. The opening movement, Decay, has every instrument blasting, overwhelming the reader with a multitude of themes: accusations, facts, and historical proofs about the true state of the union. The middle movements are much more narrowly focused and deep. They are in many ways quieter, and somber. They detail the decline and fall of typical Americans thanks to the policies outlined in the first movement. They are slow and sad, depressing and relentless. The grand finale Freedom, echoes the opening movement, showing the way forward to be bleak and grim. The only hope is for people to take back society from the corporate capitalists. It won’t be easy and it will never be complete. But if we don’t even try, the whole empire dissipates.Writing skillfully and carefully, Chris Hedges shows the decline of the American ideal dating from the Great Depression. Neighbors helping neighbors, the idea of the common good, and corporate capitalists giving in to FDR in order to drag us all out of the seemingly bottomless pit of poverty and suffering. It worked. We moved forward as we never have before (or since). And promptly forgot all the lessons. We are far along the retrograde line of uncaring, self-obsessed greed, hubris and arrogance. It will not end well, as history shows repeatedly. But it will end soon, unless history suddenly stops repeating itself. America and its bloated, ineffective military, will be sidelined. Its world-record debt will come due. The decline will be ugly.Not to put too fine a point on it, Chris Hedges (a socialist) detests Donald Trump and all he represents. He likens Trump to Nero fiddling while Rome burns, except Trump is the one lighting the fires. He says Trump and today’s Republican Party represent the last stage in the emergence of corporate totalitarianism. The shift from common good to “race, crime and law and order” is typical of declining empires, he says. It expresses a nostalgia for a time that never was and can never be, the way we’re going about it. People are simply fooling themselves. He cites Irving Howe, inspired by Faulkner: “They need not believe in the crumbling official code of their society; they need only learn to mimic its sounds.” That is a concise summary of politics today. The sounds and fury of the Trump Administration, blasting against the sounds and fury of Congress, have us addressing no real problems with anything like workable solutions. Meanwhile, the quality of life plummets for the 99%.The middle chapters examine issues like heroin, porn, gambling, racial hatred and work, which no longer allows middle class living. Nearly half the population is in a state of poverty, despite exceptionally low unemployment. Possibly the saddest chapter is the incarceration state. States have gotten past the Civil War to re-implement slavery themselves. They keep literally millions of blacks and Hispanics in slave labor, doing the work of dozens of major, household-name corporations, and profiting mightily. The prisoners, often paid pennies an hour if they are paid at all, go into debt, because they have to purchase everything (from toothpaste to stamps, as well as medical co-pays for every little thing) from the company store at hugely inflated prices, while their wages are little or nothing. The system is all about keeping the system going. Rehabilitation is not a consideration. The states want prisoners back in custody. Idiotic laws like not mowing the lawn regularly or riding a bike without both hands on the handlebars ensure a constant flow of new victims. Absurd fines and impossible bail guarantee the supply. States have contracts with prison managers to keep the prisons humming at a minimum 90% capacity, so they must find new recruits daily. This is an example of American exceptionalism: wrong incentives to achieve the corporate agenda. Hedges says “Prisons are prototypes for the future, an example of the disempowerment and exploitation corporations seek to inflict on all workers. “The final movement, Freedom, is self-mocking: when a government watches you 24 hours day, you cannot use the word “liberty”, he says. The “toxic brew” of American exceptionalism means all our institutions are corrupt and cannot be relied on for anything that doesn’t fit the corporate agenda. The solutions are hard. We need to build our own service/protest groups, open up to our communities, stay away from government and corporate grants, and keep actively building resistance. But not resistance for the sake of resistance; there must be a goal. Antifa will fail because it is purposely isolated and goalless. Prison strikes for better working conditions can succeed because of all the contracts states have with corporations to deliver goods and services. Hedges says: “As long as personal violent catharsis masquerades as acts of resistance, the corporate state is secure. Indeed, the corporate state welcomes this violence, because violence is a language it can speak with a proficiency and ruthlessness that none of these groups can match.” Hedges gives sickening examples of the state putting plants in protests to start the violence that will allow for live fire by the militarized police.Finally, we fool ourselves if we think talking will do any good: “Only when ruling elites become worried about survival do they react. Appealing to the better nature of the powerful is useless. They don’t have one.” Tough love from a straight shooter.David Wineberg
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- Rating: 5 out of 5 stars5/5"America's best days are still ahead." That's what politicians and business leaders are supposed to say. This book gives a very different view.A chapter looks at one family's journey through the nightmare of opioid addiction. Another chapter gives a Very Detailed look inside the porn business. The Taj Mahal Hotel & Casino in Atlantic City may still be officially open. The gaming tables are empty, and large numbers of the hotel rooms are unusable. Maintenance in the rooms that are used is a thing of the past, so a guest may have to deal with, for instance, leaky toilets or cockroaches.Antifa and the alt-right are two different manifestations of the same phenomenon; people who are frustrated and feel left behind by global capitalism. The factory which provided a decent living for residents of a small Midwest town has closed, and moved to Mexico, leaving them with no alternatives, and no hope. The average minority resident of New York City is more than tired of being repeatedly stopped and frisked, or given a ticket for something like jaywalking, simply because a white cop feels like it.People who are in prison will get paid a few cents for working, usually for some large corporation, if they get paid at all. Especially in private prisons, they will get financially gouged for everything else, including phone calls to their loved ones.Donald Trump may have ridden this frustration to the White House, but that does not mean that he can do anything about it, until corporate control of America is eliminated. This is certainly not an optimistic book, but it is a very eye-opening book. It is highly recommended for all Americans.
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America - Chris Hedges
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America: The Farewell Tour, by Chris Hedges, Simon & SchusterCONTENTS
Chapter 1 – DECAY
Chapter 2 – HEROIN
Chapter 3 – WORK
Chapter 4 – SADISM
Chapter 5 – HATE
Chapter 6 – GAMBLING
Chapter 7 – FREEDOM
Acknowledgments
About the Author
Notes
Bibliography
Index
For Eunice,
She’s all states, and all princes, I,
Nothing else is.
Princes do but play us; compared to this,
All honor’s mimic, all wealth alchemy.
Actually, I hardly feel constrained to try to make head or tail of this condition of the world. On this planet a great number of civilizations have perished in blood and thunder. Naturally, one must wish for the planet that one day it will experience a civilization that has abandoned blood and horror, in fact, I am . . . inclined to assume that our planet is waiting for this. But it is terribly doubtful whether we can bring such a present to its hundred—or four-hundred-millionth birthday party. And if we don’t, the planet will finally punish us, its unthoughtful well-wishers, by presenting us with the Last Judgment.
WALTER BENJAMIN, letter from Paris, 19351
This nothingness into which the West is sliding is not the natural end, the dying, the sinking of a flourishing community of peoples. Instead, it is again a specifically Western nothingness: a nothingness that is rebellious, violent, anti-God, and antihuman. Breaking away from all that is established, it is the utmost manifestation of all the forces opposed to God. It is nothingness as God; no one knows its goal or its measure. Its rule is absolute. It is a creative nothingness that blows its anti-God breath into all that exists, creates the illusion of waking it to new life, and at the same time sucks out its true essence until it soon disintegrates into an empty husk and is discarded. Life, history, family, people, language, faith—the list could go on forever because nothingness spares nothing—all fall victim to nothingness.
DIETRICH BONHOEFFER, Ethics2
1
DECAY
Hard as it may be for a state so framed to be shaken, yet, since all that comes into being must decay, even a fabric like this will not endure forever, but will suffer dissolution.
PLATO, The Republic1
I walked down a long service road into the remains of an abandoned lace factory. The road was pocked with holes filled with fetid water. There were saplings and weeds poking up from the cracks in the asphalt. Wooden crates, rusty machinery, broken glass, hulks of old filing cabinets, and trash covered the grounds. The derelict complex, 288,000 square feet, consisted of two huge brick buildings connected by overhead, enclosed walkways. The towering walls of the two buildings, with the service road running between them, were covered with ivy. The windowpanes were empty or had frames jagged with shards of glass. The thick wooden doors to the old loading docks stood agape. I entered the crumbling complex through a set of double wooden doors into a cavernous hall. The wreckage of industrial America lay before me, home to flocks of pigeons that, startled by my footsteps over the pieces of glass and rotting floorboards, swiftly left their perches in the rafters and air ducts high above my head. They swooped, bleating and clucking, over the abandoned looms.
The Scranton Lace Company was America. It employed more than 1,200 workers on its imported looms, some of the largest ever built.2
I stood in front of one. The looms, weighing nearly twenty metric tons and manufactured in Nottingham, England, were twenty feet tall. They stretched across the expanse of the old factory floor. The word Nottingham
was embossed on the black arms of the machines. Another age. Another time. Another country.
The factory, started in 1891, was once among the biggest producers of Nottingham lace in the world.3
When it closed in 2002—the company’s vice president appeared at mid-shift and announced that it was shutting down immediately—it had become a ghost ship with fewer than fifty workers.4
On the loom before me, the white lace roll sat unfinished. Punch cards, with meticulous, tiny holes for the needles to pass through, lay scattered on the floor. The loom was stopped in the middle of production, arrested in time, an artifact of a deindustrialized America.
For more than a century, the factory stood as a world unto itself. I wandered through the remains. The old bowling alley, the deserted cafeteria with its rows of heavy cast iron stoves, the company barbershop, a cluttered and dusty gymnasium, the auditorium with a stage, the infirmary, and outside, the elegant clock tower with the cast iron bell and large whistle that once signaled shift changes.
The company had its own coal mines and cotton fields. It made products that the workers, including Hillary Clinton’s father and grandfather, viewed with pride.5
They could hold them in their hands. Curtains. Napkins. Tablecloths. Valances. Shower curtains. Textile laminates for umbrellas. During World War II, the facility manufactured bomb parachutes and mosquito and camouflage netting. The employees had unions. The unions ensured that workers were paid overtime and had medical care, pensions, and safe working conditions. But the company gave more than a wage to the thousands of men and women who worked here. It gave them dignity, purpose, pride, a sense of place, hope, and self-esteem. All of that was gone. It had been replaced in Scranton and across America by desperation, poverty, drift, a loss of identity, and a deep and crippling despair.
Scranton mayor Christopher Doherty, when I interviewed him, was fifty-four, trim, articulate, and the father of six children. He had been mayor for eleven years. He did not seek reelection in 2014 and was replaced by another Democrat who accelerated the selling off of city assets.
Doherty spoke to me in his shirtsleeves. The room was stuffy in the summer heat. The air-conditioning was turned off to reduce electric bills. The mayor had just negotiated a deal with his antagonistic five-member City Council to pull Scranton back from bankruptcy. By the summer of 2012, banks would no longer lend the city money.6
With only $5,000 left in its bank account and facing a $1 million payroll in July, Scranton was forced to reduce every city employee’s income, including the mayor’s, to the minimum wage: $7.25 an hour.7
His deal to save the city from default included a 29 percent increase in real estate taxes over the next three years, less than half of the 78 percent he proposed,8
along with a new commuter tax, a sales tax, an amusement tax, and higher real estate transfer fees, license and permit fees, and business and mercantile taxes.
The plan came with requisite austerity measures. City departments saw their budgets cut by $1.6 million, which meant further job losses.9
Doherty had already reduced the city employment rolls from five hundred to four hundred.10
Scranton’s universities, including the University of Scranton and the Commonwealth Medical College, were asked to contribute $2.4 million—instead of the current $300,000—to the city’s $70 million operating costs.11
The University of Scranton complied with the city’s request.12
Borrowing and refinancing raised nearly $17 million13
to bridge the budget gap, but unless the city created reliable new revenue streams, disaster was, Doherty admitted, merely postponed. The Scranton school district has an annual deficit of more than $20 million.14
Seventy percent of the residents pay less than $500 a year in property taxes.15
The average per capita annual income is about $20,000 and less than $38,000 for a family.16
We are government, education, and medicine,
Doherty said of the city’s principal institutions, and if you look at all cities, that is what they are. There is really no manufacturing anywhere.
This is not quite true. Scranton makes munitions. Weapons are one of the last products still produced in America. The Scranton Army Ammunition Plant (SCAAP), surrounded by high fencing with coils of razor wire, makes a series of projectiles, including 105-millimeter and 155-millimeter shells. It is housed in a brick complex that once repaired locomotive steam engines. Most of the shells end up as useless shards of metal in Iraq or Afghanistan. SCAAP is part of America’s militarized capitalism, which plows vast sums into a permanent war economy. Upward of half of all federal dollars are spent on the war industry. The Pentagon consumes nearly $600 billion17
a year. Our real expenditure on the military, when military items tucked away in other budgets are counted, is over $1 trillion a year.18
The heaviest strain on the budget, the mayor said, are municipal employees’ pensions and health care costs. The 2008 economic crisis wiped out as much as 40 percent of the city’s investments.19
Scranton, like many cities and institutions, invested in Wall Street financial cons such as collateralized debt obligations (CDOS)—pooled assets such as subprime mortgages, bonds, loans, and credit card debt that the banks often knew were toxic. This high-risk investment was certified by ratings agencies such as Standard & Poor’s as AAA—meaning the investment had an exceptional degree of creditworthiness.
When the financial bubble burst, financial firms saw their assets plummet. American International Group (AIG) posted a quarterly loss of $61.7 billion20
and turned, like most of the big banks, to the U.S. Treasury to bail them out. But no one bailed out the victims.
I asked Doherty what worried him most about the city’s future.
The ability to generate revenues so cities can make their payments,
he answered immediately. If they can’t, you will see a breakdown of the city. You will see it in education. You will see it in crime. What happens is a domino effect, as you have in Baltimore, where even though you have these great educational institutions, the city still has a problem with crime.
The current mayor of Scranton, Bill Courtright, sold the city sewer authority to Pennsylvania American Water, a subsidiary of American Water Works Company Inc., for $195 million.21
Pennsylvania American Water already owns Scranton’s drinking water system.22
The city’s sewer system authority is shared with the town of Dunmore.
The money from the sale was used to pay off the $70 million sewer authority debt.23
After 20 percent of the money was given to Dunmore, the city was left with $70 million.24
This money will repair infrastructure, such as roads, and pay shortfalls in the pension funds for city employees. The city was able to pay $29.3 million in back pay to police and firefighters, including retirees.25
It put $1.59 million into the city’s public pension funds.26
Mayor Courtright, who declined to grant me an interview, also sold the city’s parking authority to National Development Council for $32 million.27
It costs 25 cents more an hour under the for-profit parking authority to park at a meter in the city and 50 cents more to park in one of the city’s parking garages.28
But after the last city assets are sold, what is next? No one has an answer.
Karl Marx knew the peculiar dynamics of capitalism, or what he called the bourgeois mode of production.
29
He knew that reigning ideologies—think corporate capitalism with its belief in deindustrialization, deregulation, privatization of public assets, austerity, slashing of social service programs, and huge reductions in government spending—were created to serve the interests of the economic elites, since the class which has the means of material production at its disposal, has control at the same time over the means of mental production
30
and the ruling ideas are nothing more than the ideal expression of the dominant material relationships . . . the relationships which make one class the ruling one.
31
The acceleration of deindustrialization by the 1970s created a crisis that forced the ruling elites to devise a new political paradigm, as Stuart Hall (with cowriters) explains in Policing the Crisis.32
This paradigm, trumpeted by a compliant media, shifted its focus from the common good to race, crime, and law and order. It told those undergoing profound economic and political change that their suffering stemmed not from corporate greed, but from a threat to national integrity. The old consensus that buttressed the programs of the New Deal and the welfare state was attacked as enabling criminal black youth, welfare queens, and social parasites. The parasites were to blame. This opened the door to an authoritarian populism, begun by Ronald Reagan and Margaret Thatcher, which supposedly championed family values, traditional morality, individual autonomy, law and order, the Christian faith, and the return to a mythical past, at least for white Americans. Donald Trump capitalized on this perceived threat to national integrity and authoritarian populism to take power.
Marx warned that capitalism had built within it the seeds of its own destruction. There would come a day when capitalism would exhaust its potential and collapse. He did not know when that day would come. Marx, as Meghnad Desai, the economist and Labour politician in the United Kingdom, wrote, was an astronomer of history, not an astrologer.
33
Marx was keenly aware of capitalism’s ability to innovate and adapt. But he also knew that capitalist expansion was not eternally sustainable. And as we witness the denouement of capitalism, Karl Marx is vindicated as the system’s most prescient and important critic.
In the preface to A Contribution to the Critique of Political Economy, Marx wrote:
No social order ever disappears before all the productive forces for which there is room in it have been developed; and new higher relations of production never appear before the material conditions of their existence have matured in the womb of the old society itself. Therefore, mankind always sets itself only such tasks as it can solve; since looking at the matter more closely, we always find that the task itself arises only when the material conditions necessary for its solution already exist, or are at least in the process of formation.34
Socialism, in other words, would not be possible until capitalism had exhausted its ability to expand and increase profits. That the end is coming is hard now to dispute, although one would be foolish to predict when. Global capitalism, in its final iteration, may replicate China’s totalitarian capitalism, a brutal system sustained by severe repression where workers are modern-day serfs.
The end stages of capitalism, Marx wrote, would be marked by developments that are intimately familiar to Scranton. Unable to expand and generate profits at past levels, the capitalist system would begin to consume the structures that sustained it. It would prey upon, in the name of austerity, the working class and the poor, driving them ever deeper into debt and poverty and diminishing the capacity of the state to serve the basic needs of ordinary citizens. It would, as it has, increasingly automate or relocate jobs, including both manufacturing and professional positions, to countries with cheap pools of laborers. This would trigger an economic assault on not only the working class but the middle class—the bulwark of a capitalist democracy—that would be disguised by massive personal debt as incomes declined or remained stagnant and borrowing soared. Politics would, in the late stages of capitalism, become subordinate to economics, leading to political parties hollowed out of any real political content and abjectly subservient to the dictates of corporations.
But as Marx warned, there is a limit to an economy built on austerity and the scaffolding of debt expansion. There comes a moment, Marx knew, when there would be no new markets available and no new pools of people who could take on more debt. This is what happened with the subprime mortgage crisis. Once the banks could not conjure up new subprime borrowers, the scheme fell apart and the system crashed.
Capitalist oligarchs, meanwhile, hoard huge sums of wealth—$7.6 trillion stashed in overseas tax havens—exacted as tribute from those they dominate, indebt, and impoverish.35
Capitalism would, in the end, Marx said, turn on the so-called free market, along with the values and traditions it claims to defend. It would in its final stages pillage the systems and structures that made capitalism possible. It would resort, as it causes widespread suffering, to harsher forms of repression to maintain social control. It would attempt, in a frantic last stand, to extract profit by looting and pillaging state institutions, contradicting its stated nature.
Marx and Friedrich Engels foresaw that in the later stages of capitalism global corporations would exercise a monopoly on the world’s markets. The need of a constantly expanding market for its products chases the bourgeoisie over the entire surface of the globe,
they wrote. It must nestle everywhere, settle everywhere, establish connections everywhere.
36
These corporations, whether in the banking sector, the fossil fuel industry, agricultural and food industries, the arms industries, or the communications industries, would use their power, usually by seizing the mechanisms of the state, to prevent anyone from challenging their global monopolies. They would fix prices to maximize profit. They would, as they have been doing, push through trade deals to further weaken the nation-state’s ability to impede exploitation by imposing environmental regulations or monitoring working conditions. In the end these corporate monopolies would obliterate free market competition.
A May 22, 2015, editorial in The New York Times headlined Banks as Felons, or Criminality Lite,
gives us a window into what Marx said would characterize the late stages of capitalism:
As of this week, Citicorp, JPMorgan Chase, Barclays and Royal Bank of Scotland are felons, having pleaded guilty on Wednesday to criminal charges of conspiring to rig the value of the world’s currencies. According to the Justice Department, the lengthy and lucrative conspiracy enabled the banks to pad their profits without regard to fairness, the law or the public good.37
THE TIMES WENT ON:
The banks will pay fines totaling about $9 billion, assessed by the Justice Department as well as state, federal and foreign regulators. That seems like a sweet deal for a scam that lasted for at least five years, from the end of 2007 to the beginning of 2013, during which the banks’ revenue from foreign exchange was some $85 billion.
The terminal stages of what we call capitalism, as Marx grasped, is not capitalism at all. Corporations feast on taxpayer money. The government is committed to spending $348 billion38
over the next decade to modernize our nuclear weapons and build twelve new Ohio-class nuclear submarines, estimated at $8 billion each.39
Whether we need these submarines is irrelevant. No Democrat or Republican dares challenge the expenditures by the Pentagon, whose budget has never been audited, despite legal requirements to do so since 1996. That totals $10 trillion in taxpayer dollars that is unaccountable.40
But to challenge the war industry and the empire, as even Bernie Sanders knows, is political suicide. We spend some $100 billion a year on intelligence—read surveillance—and 70 percent41
of that money goes to private contractors such as Booz Allen Hamilton, which gets 99 percent of its revenues from the U.S. government.42
The Department of Education spends $68 billion a year. Wall Street and hedge funds, which are behind the charter school industry, view public education as one more source of revenue.
The fossil fuel industry swallows up $5.3 trillion a year worldwide in hidden costs to keep burning fossil fuels, according to the International Monetary Fund.43
This money, the IMF notes, is in addition to the $492 billion in direct subsidies offered by governments around the world through write-offs and write-downs and land-use loopholes.44
In a rational world, these subsidies would be invested to free us from the deadly effects of carbon emissions caused by fossil fuels and rebuild the nation’s decaying infrastructure, but we do not live in a rational world.
Bloomberg News reported in a 2013 editorial, Why Should Taxpayers Give Big Banks $83 Billion a Year?,
that economists had determined that government subsidies lower the big banks’ borrowing costs by about 0.8 percent.45
Multiplied by the total liabilities of the 10 largest U.S. banks by assets,
the editorial said, it amounts to a taxpayer subsidy of $83 billion a year.
The top five banks—JPMorgan, Bank of America Corp., Citigroup Inc., Wells Fargo & Co. and Goldman Sachs Group Inc.—account,
the editorial went on, for $64 billion of the total subsidy, an amount roughly equal to their typical annual profits. In other words, the banks occupying the commanding heights of the U.S. financial industry—with almost $9 trillion in assets, more than half the size of the U.S. economy—would just about break even in the absence of corporate welfare. In large part, the profits they report are essentially transfers from taxpayers to their shareholders.
Government expenditure accounts for 41 percent of GDP.46
Public lands, prisons, schools, water and power utilities, parking authorities, sewer systems, garbage collection, and health services are being sold off or privatized by desperate towns, cities, and states. None of these seizures of basic services by for-profit corporations makes them more efficient or reduces costs. That is not the point. It is about extracting money from the carcass of the state. This process ensures the disintegration of the structures that sustain capitalism itself. All this Marx got.
Marx illuminated these contradictions within capitalism. He understood that the idea of capitalism—free trade, free markets, individualism, innovation, self-development—works only in the utopian mind of a true believer such as Alan Greenspan, never in reality. The hoarding of wealth by a tiny capitalist elite, Marx foresaw, along with the driving down of wages of workers, leaves populations unable to buy the products capitalism produces.
The assault on the working class has been happening for several decades. Salaries have remained stagnant or declined since the 1970s.47
Manufacturing has been shipped overseas, where workers in countries such as China earn a dollar an hour,48
or Bangladesh, where they earn 32 cents an hour.49
The working class is forced to compete against labor pools of modern-day serfs. Industries such as construction, which once provided well-paying unionized jobs, are the domain of underpaid, nonunionized, often undocumented workers. Corporations import foreign engineers and software specialists who do professional work at one third of the normal salary on H-1B, L-1, and other work visas. All these workers are bereft of the rights of citizens.
The capitalists respond to the collapse of their domestic economies, which they engineered, by becoming global loan sharks and speculators. They lend money at exorbitant interest rates to the working class and the poor, even if they know the money can never be repaid, and then sell these bundled debts, including credit default swaps, bonds, and stocks to pension funds, cities, investment firms, and institutions. This late form of capitalism is built on what Marx called fictitious capital.
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And it leads, as Marx knew, to the vaporization of money.
Once subprime mortgage borrowers began to default, as the big banks and investment firms knew was inevitable, the government bailed out the banks and imposed austerity to pay for the bailouts. What saved us from a full-blown depression was, in a tactic Marx would have found ironic, massive state intervention in the economy, including the nationalization of huge corporations such as AIG and General Motors.
What we saw in 2008 was an example of our welfare state for the rich, a kind of state socialism for the financial elites that Marx predicted. But with this comes an increased and volatile cycle of boom and bust, bringing the system closer to disintegration and collapse. We have undergone two major stock market crashes and the implosion of real estate prices in just the first decade of the twenty-first century.
The half dozen corporations that own most of the media have worked overtime to sell to a bewildered public the fiction that we are enjoying a recovery. Employment figures, through a variety of gimmicks, including erasing those who are unemployed for over a year from unemployment rolls, are a lie, as is nearly every other financial indicator pumped out for public consumption. Marx knew that once the market mechanism became the sole determining factor for the fate of the nation-state, as well as the natural world, both would be demolished.
As deteriorating infrastructure and ongoing layoffs continue to beset the nation’s cities, more dramatic signs of neglect will appear. Garbage will pile up uncollected on curbsides. Power grids will blink on and off. There will not be enough police, firefighters, or teachers. Pensions will be slashed or paid sporadically. Decent medical care will be reserved for the rich. Those who die because they cannot afford health care—now 45,000 uninsured people a year51
—will perish in greater numbers. Fuel and food prices will climb. Processed food laden with preservatives, sugar, and fat will become the staple diet. At least a quarter of the population will lack adequate employment. Law and order will break down. Crime will become endemic, and in a nation where nearly anyone can get a gun, death rates from violence will rise. Riots, if the unraveling is not halted, will erupt across the country like wildfires. Random and mass shootings will grow more common. Hate groups will proliferate like lice. And widespread disgust with the political elites, as well as the uncertainty and chaos, will make some kind of militarized solution increasingly attractive to embittered, demoralized Americans.
The ruling corporate kleptocrats are political arsonists. They are carting cans of gasoline into government agencies, the courts, the White House, and Congress to burn down any structure or program that promotes the common good. Steve Bannon correctly named this assault as the deconstruction of the administrative state.
52
Trump’s appointees are diminishing or dismantling the agencies they were named to lead and the programs they are supposed to administer. That is why they were selected. Rex Tillerson at the State Department, Steven Mnuchin at the Treasury Department, Scott Pruitt at the Environmental Protection Agency, Rick Perry at the Department of Energy, Ben Carson at the Department of Housing and Urban Development, and Betsy DeVos at the Department of Education are dynamiting the foundations of democratic institutions.
William S. Burroughs in his novel Naked Lunch created predatory creatures he called Mugwumps.
Mugwumps,
he wrote, have no liver and nourish themselves exclusively on sweets. Thin, purple-blue lips cover a razor-sharp beak of black bone with which they frequently tear each other to shreds in fights over clients. These creatures secrete an addictive fluid through their erect penises which prolongs life by slowing metabolism.
53
Those addicted to this fluid are called Reptiles.
54
The addiction to the grotesque, to our own version of Mugwumps, has become our national pathology. We are entranced, even as the secretion of Trump’s Mugwump fluid repulses us. He brings us down to his level. We are glued to cable news, which usually sees a decrease in viewership after a presidential election. Ratings for the Trump-as-president reality show, however, are up 50 percent.55
CNN had its most profitable year ever in 2016. It projected increasing this in 2017 to a billion dollars in profit.56
The New York Times added some 500,000 net subscribers over a period of six months.57
The Washington Post saw a 75 percent increase in new subscribers in a year.58
Subscriptions to magazines like The New Yorker59
and The Atlantic60
have also grown.
This growth is provoked not by a sudden desire to be informed, but by Americans’ wanting to be continually updated on the political soap opera that epitomizes politics. Which country will the president insult today? Mexico? Australia? Sweden? Germany? Which celebrity or politician will he belittle? Liddle Bob Corker
? Lyin’ Ted
? Crooked Hillary
? What idiocy will come out of his mouth or from his appointees? Can Kellyanne Conway, who pitched Ivanka Trump’s product line on cable television, top her claim that microwave ovens were turned into cameras to spy on Donald Trump?61
Will DeVos say something as stupid as her assertion that guns are needed in schools to protect children from grizzly bears?62
Will Trump again mangle historical fact, insisting that President Andrew Jackson, who died in 1845, opposed the Civil War, which began in 1861? Can he top his apparent belief that Frederick Douglass is among the living? Tune in.
Trump found the flaw in the American Death Star,
Matt Taibbi writes. It doesn’t know how to turn the cameras off, even when it’s filming its own demise.
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It is entertainment all the time. The media long ago gave up journalism to keep us amused. Trump was its creation. And now we get a daily Gong Show
out of the White House.64
It is good for Trump. It is good for cable news networks’ profits. But it is bad for us. It keeps us distracted as the kleptocrats transform the country into a banana republic. The Trump presidency is lifted from the pages of Gabriel García Márquez’s novel The Autumn of the Patriarch, in which the eternal
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dictator was feared and mocked in equal measure.
The most ominous danger we face does not come from the eradication of free speech through the obliteration of net neutrality or through Google algorithms that steer people away from dissident, left-wing, progressive, or antiwar sites. It does not come from the 2017 tax bill that abandons all pretense of fiscal responsibility to enrich corporations and oligarchs and prepares the way to dismantle programs such as Social Security. It does not come from the opening of public land to the mining and fossil fuel industry, the acceleration of ecocide by demolishing environmental regulations, or the destruction of public education. It does not come from the squandering of federal dollars on a bloated military as the country collapses or the use of the systems of domestic security to criminalize dissent. The most ominous danger we face comes from the marginalization and destruction of institutions, including the courts, academia, legislative bodies, cultural organizations, and the press, that once ensured that civil discourse was rooted in reality and fact, helping us distinguish lies from truth, and facilitate justice.
Trump and today’s Republican Party represent the last stage in the emergence of corporate totalitarianism. Pillage and oppression are justified by the permanent lie. The permanent lie is different from the falsehoods and half-truths uttered by politicians such as Bill Clinton, George W. Bush, and Barack Obama. The common political lie these politicians employed was not designed to cancel out reality. It was a form of manipulation. Clinton, when he signed into law the North American Free Trade Agreement, promised NAFTA means jobs, American jobs and good-paying American jobs.
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George W. Bush justified the invasion of Iraq because Saddam Hussein supposedly possessed weapons of mass destruction. But Clinton did not continue to pretend that NAFTA was beneficial to the working class when reality proved otherwise. Bush did not pretend that Iraq had weapons of mass destruction once none were found.
The permanent lie is not circumscribed by reality. It is perpetuated even in the face of overwhelming evidence that discredits it. It is irrational. Those who speak in the language of truth and fact are attacked as liars, traitors and purveyors of fake news.
They are banished from the public sphere once totalitarian elites accrue sufficient power, a power now granted to them with the revoking of net neutrality. The iron refusal by those who engage in the permanent lie to acknowledge reality, no matter how transparent reality becomes, creates a collective psychosis.
The result of a consistent and total substitution of lies for factual truth is not that the lie will now be accepted as truth and truth be defamed as a lie, but that the sense by which we take our bearings in the real world—and the category of truth versus falsehood is among the mental means to this end—is being destroyed,
Hannah Arendt wrote in The Origins of Totalitarianism.67
The permanent lie turns political discourse into absurdist theater. Trump, who lies about the size of his inauguration crowd despite photographic evidence, insists that in regard to his personal finances he is going to get killed
by a tax bill that actually will save him and his heirs more than $1 billion.68
Treasury secretary Steven Mnuchin claims he has a report that proves that the tax cuts will pay for themselves and will not increase the deficit—only there never was a report. Senator John Cornyn assures us, countering all factual evidence, that this is not a bill that is designed primarily to benefit the wealthy and the large businesses.
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Two million acres of public land, meanwhile, are handed over to the mining and fossil fuel industry as Trump insists the transfer means that public lands will once again be for public use.
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When environmentalists denounce the transfer as a theft, Representative Rob Bishop calls their criticism a false narrative.
71
FCC chairman Ajit Pai, after ending net neutrality, effectively killing free speech on the internet, says, [T]hose who’ve said the internet as we know it is about to end have been proven wrong. . . . We have a free internet going forward.
72
And at the Centers for Disease Control and Prevention, phrases such as evidence-based
and science-based
are banned.73
The permanent lie is the apotheosis of totalitarianism. It no longer matters what is true. It matters only what is correct.
Federal courts are being stacked with imbecilic and incompetent judges who serve the correct
ideology of corporatism and the rigid social mores of the Christian right. They hold reality, including science and the rule of law, in contempt. They seek to banish those who live in a reality-based world defined by intellectual and moral autonomy. Totalitarian rule always elevates the brutal and the stupid. These reigning idiots have no genuine political philosophy or goals. They use clichés and slogans, most of which are absurd and contradictory, to justify their greed and lust for power. This is as true for the Christian right as it is for the corporatists that preach the free market and globalization. The merger of the corporatists with the Christian right is the marrying of Godzilla to Frankenstein.
The venal political figures need not even comprehend the social and political consequences of their behavior,
psychiatrist Joost A. M. Meerloo wrote in The Rape of the Mind: The Psychology of Thought Control, Menticide, and Brainwashing. They are compelled not by ideological belief, no matter how much they may rationalize to convince themselves they are, but by the distortions of their own personalities. They are not motivated by their advertised urge to serve their country or mankind, but rather by an overwhelming need and compulsion to satisfy the cravings of their own pathological character structures. The ideologies they spout are not real goals; they are the cynical devices by which these sick men hope to achieve some personal sense of worth and power. Subtle inner lies seduce them into going from bad to worse. Defensive self-deception, arrested insight, evasion of emotional identification with others, degradation of empathy—the mind has many defense mechanisms with which to blind the conscience.
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When reality is replaced by the whims of opinion and expediency, what is true one day often becomes false the next. Consistency is discarded. Complexity, nuance, depth, and profundity are replaced with the simpleton’s belief in threats and force. This is why the Trump administration disdains diplomacy and is dynamiting the State Department. Totalitarianism, wrote novelist and social critic Thomas Mann, is at its core the desire for a simple folktale. Once this folktale replaces reality, morality and ethics are abolished.
Those who can make you believe absurdities can make you commit atrocities,
Voltaire warned.75
Mass culture in the hands of corporate power is a potent and dangerous force. It creates a herd mentality. It banishes independent and autonomous thought. It destroys our self-confidence. It marginalizes and discredits dissidents and nonconformists. It depoliticizes the citizenry. It instills a sense of collective futility and impotence by presenting the ruling ideology as a revealed, unassailable truth, an inevitable and inexorable force that alone makes human progress possible. It uses the cant of nationalism and patriotic symbols to mount a continuous celebration of American power and virtues. It disconnects the working class in one country from another—one of the primary objectives of the capitalist class.
Nationalism, the revolutionary theorist Rosa Luxemburg warned, is always a tool used to betray the working class. It is, she wrote, an instrument of counterrevolutionary class policy.
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It unleashes powerful forms of indoctrination.
As the contagion of nationalism erupted at the outbreak of the First World War, liberal European parties, including the German Social Democrats, swiftly surrendered to right-wing nationalists in the name of the fatherland despite many years of antiwar rhetoric. Luxemburg saw this betrayal as evidence of the fundamental moral and political bankruptcy of the liberal establishment in a capitalist society. By the time the war was over, eleven million soldiers on all sides, most of them working-class men, were dead. Capitalists, who had grown rich from the slaughter, had nothing to fear now from the working class. They had fed them to the mouths of machine guns.
Mass culture is an assault that, as the Italian Marxist philosopher Antonio Gramsci wrote, results in a confused and fragmentary
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consciousness, or what Marx called false consciousness.
It is designed to impart the belief to the proletariat that its true
interests are aligned with those of the ruling class. It transforms legitimate economic and social grievances into psychological and emotional problems. It uses nationalism to discredit class interests.
We are not a product of nature, Gramsci understood, but of our history and our culture. If we do not know our history and our culture, if we accept the history and culture manufactured for us by the elites, we will never free ourselves from the forces of oppression. The recovery of memory and culture in the 1960s by radical movements terrified the elites. It gave people an understanding of their own power and agency. It articulated and celebrated the struggles of working men and women and the oppressed rather than the mythical beneficence of the powerful. It exposed the exploitation and mendacity of the ruling class. And that is why corporatists spent billions to crush and marginalize these movements and their histories in schools, culture, the press, and in our systems of entertainment.
Not only does the people have no precise consciousness of its own historical identity,
Gramsci lamented under fascism, it is not even conscious of the historical identity or the exact limits of its adversary.
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If we do not know our history we have no point of comparison. We cannot name the forces that control us or see the long continuity of capitalist oppression and resistance. A failed democracy, Plato warned, creates the conditions for tyranny based on popular support. This is what happened in fascist Germany and Italy. It is what happened with the election of Trump. When a right-wing populism or fascism takes power our goal is not, as Gramsci said, to rouse the civic consciousness of the nation,
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but to nurture and recreate a civic consciousness that has been lost. This is where we are historically.
Democracy throughout most of the history of the West was an anomaly. After the suppression of Athenian democracy in 322 BC by the Macedonians—and this democracy was only for men and excluded slaves—it was two thousand years before another democratic government came into existence. It has only been in the latter part of the twentieth century that democratic governments were able to flourish, however imperfectly. Our own system of government, if one takes into consideration the exclusion of African Americans, Native Americans, men without property, and women, could not be defined as a full democracy until the middle of the last century. And we are now rolling back toward a more familiar despotism.
Gramsci edited the paper in Turin, Ordine Nuovo or The New Order,
during the labor uprisings in 1919 that saw workers take over factory floors and form workers councils. He and the other writers on the paper—who inexplicably ceased publication at the height of the unrest to devote themselves to organizing—did not advocate positions until they had canvassed and spoken at length to the workers councils. These councils, Gramsci wrote, not only gave workers power over their work lives but broke down the wall barricading the private citizen from participation in political life.
Capitalist states seek to keep workers unconscious, Gramsci wrote, because no worker under a capitalist system will ever receive the full amount for his or her labor. This would destroy capitalism. Any worker who truly understood his or her interests would be dedicated to the overthrow of capitalism.
Revolution for Gramsci did not come from above but from below. It was organic. And the failure, in his eyes, of revolutionary elites is that they were often as dictatorial