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Too Big To Fail: The First 5000 Years — Crooked Timber

25 Feb

In his magisterial Debt: The First 5000 Years David Graeber mentions numerous debt jubilees in the ancient world, always with the qualification that it is individual debt that is forgiven, not commercial debt. This is a review the examines that point.

So it is noticeable that the concept of “too big to fail” has grown up hand in hand with the concept of the debt relation for the entire traceable history of debt. Although the parallel track of debt as obligation, religion and morality has certainly been there, and is described expertly in the book, from day one it has been recognised among merchants and men of commerce that the point of the debt relation is to serve the organisation and arrangement of commercial need.

To my mind, this fact rather colours one of the central theses of Debt – the idea that debt has from its origins been entwined with slavery, military tribute and imperialism. I’d advance the suggestion that of course the first people to start codifying the debt relation were the first emperors and rulers; they were the first people who ever came across the problem of organising a productive economy larger than a small village or subsistence farming community. The fact that debt has its origins in the creation of tax-collecting, military societies seems to me to be equivalent to the fact that NASA invented Teflon – they had to do it, in order to solve the problems put in front of them.

via Too Big To Fail: The First 5000 Years — Crooked Timber.

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Symposium on Graeber’s Debt

23 Feb

Symposium on Graeber’s Debt

As I’ve all ready noted, Crooked Timber is running a symposium on David Graeber’s Debt: The First 5000 Years. Contributions so far:

All are worth reading, as are many of the comments. I’ll end with the last paragraph from Bertram’s introduction:

Does Graeber find in utopian and democratic resistance to the Axial empires an historic precedent for the Occupy movement to emulate? Perhaps our best possibilities lie not in grand schemes of societal transformation but in developing the “baseline communism” and the democratic instincts that persist even in the heart of modern capitalism. The anarchist writer Colin Ward used a phrase from Ignazio Silone – “the seed beneath the snow” – to make a similar idea vivid. We cannot take the beast on in a direct assault, and nor should we, but we can work together to develop a more human society within the nooks and crannies of the commercial one.

Sounds a bit like a plug for the Transition Movement, which originated in England and has since spread around the world.

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The Dangers of Pricing the Infinite — Crooked Timber

23 Feb

Crooked Timer is running a symposium on David Graeber’s Debt. Here’s a passage from Malcolm P. Harris’s essay on student debt:

In April of last year I wrote an article for N+1 on the astronomic growth of student debt in America since the 70s. At the time, student loans had just passed credit cards as the largest source of consumer debt at $800 billion. Less than a year later, the total has topped $1 trillion with no real signs of slowing, while the other measures I referenced, including youth unemployment, have increased to new record levels as well. The conclusion that “the most indebted generation in history is without the dependable jobs it needs to escape debt” is more valid than ever.

via The Dangers of Pricing the Infinite — Crooked Timber.

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America’s last hope: A strong labor movement – The 99 Percent Plan – Salon.com

20 Feb

The labor movement is the critical anchor and enabler of democracy grounded on a notion of freedom. Most people have an intuitive understanding of what democracy means: rule by the people (as opposed to rule by the few or an elite). Yet, as Corey Robin so eloquently points out in his book on fear, Americans give up their individual freedom and democratic voice every single day they walk into work. The workplace is an authoritarian dictatorship, and we accept this as legitimate.

Now is the time to challenge that feudal relationship. We need to call into question the assumption that Americans believe democracy stops at the workplace door. If we would not stand for a despot to rule over us with impunity, why do we let the boss do so every day of the workweek? Any progressive advance needs a strong labor movement to achieve a fully free and democratic workplace and society. This vision of freedom and democracy manifests in two domains: the workplace and the southern region of the country.

via America’s last hope: A strong labor movement – The 99 Percent Plan – Salon.com.

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Robert Scheer: Apple’s China Comes Home to Haunt Us

18 Feb

Forty years ago Nixon cut a deal with China:

At the heart of the deal was a rejection of the basic moral claim of both egalitarian socialism and free market capitalism, the rival ideologies of the Cold War, to empower the individual as the center of decision-making. Instead, the fate of the citizen would come to be determined by an alliance between huge multinational corporations and government elites with scant reference to the needs of ordinary working folk.

It was understood by both parties to this grand concord that monopoly capitalism could be constructed in China to be consistent with the continuance in power of a Communist hierarchy, just as in the West capitalism was consistent with the enrichment of an ostensibly democratic ruling class. Sharp income inequality, the bane of genuine reform movements bearing the names populist, socialist and democratic, came to be the defining mark of the new international order.

via Robert Scheer: Apple’s China Comes Home to Haunt Us.

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The Dodd-Frank act: Too big not to fail | The Economist

17 Feb

When Dodd-Frank was passed, its supporters suggested that tying up its loose ends would take 12-18 months. Eighteen months on, those predictions look hopelessly naive. Politicians and officials responsible for Dodd-Frank are upbeat about their progress and the system’s prospects, at least when speaking publicly. But one banker immersed in the issue speaks for many when he predicts a decade of grind, with constant disputes in courts and legislatures, finally producing a regime riddled with exceptions and nuances that may, because of its complexity, exacerbate systemic risks rather than mitigate them.

For the same reasons that bankers are worried, lawyers are rubbing their hands. For many of America’s most prominent law firms helping companies to cope with Dodd-Frank is a vital service to clients, a lubricant for the American economy and a great new business.

Hmmm . . . Sorta makes you think that no one really knows what’s going on.

via The Dodd-Frank act: Too big not to fail | The Economist.

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Is China our future? – U.S. Economy – Salon.com

17 Feb

And GE Consumer & Industrial CEO James Campbell reiterated it when he recently told the New York Times that “making things in America is as viable as making things any place” because domestic labor costs are now “significantly less with the competitive wages” — read: far lower wages — now accepted by American workers.

Now that this consensus is finally out in the open, the real question for America is simple: Do we accept an economic competition that asks us to emulate China?

If our answer is yes, then we should support current state legislative proposals to reduce child labor protections; back federal legislation to eliminate all environmental, wage and workplace safety laws; and applaud corporations that crush unions and further reduce wages in America. We should also probably encourage our fellow countrymen to follow Apple Inc.’s Chinese workforce by simply accepting $17-a-day paychecks, 12-hour workdays and six-day workweeks.

via Is China our future? – U.S. Economy – Salon.com.

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Noam Chomsky: America’s Decline Is Real — and Increasingly Self-Inflicted | World | AlterNet

17 Feb

From the 1970s, there has been a significant change in the U.S. economy, as planners, private and state, shifted it toward financialization and the offshoring of production, driven in part by the declining rate of profit in domestic manufacturing. These decisions initiated a vicious cycle in which wealth became highly concentrated (dramatically so in the top 0.1% of the population), yielding concentration of political power, hence legislation to carry the cycle further: taxation and other fiscal policies, deregulation, changes in the rules of corporate governance allowing huge gains for executives, and so on.

Meanwhile, for the majority, real wages largely stagnated, and people were able to get by only by sharply increased workloads (far beyond Europe), unsustainable debt, and repeated bubbles since the Reagan years, creating paper wealth that inevitably disappeared when they burst (and the perpetrators were bailed out by the taxpayer). In parallel, the political system has been increasingly shredded as both parties are driven deeper into corporate pockets with the escalating cost of elections, the Republicans to the level of farce, the Democrats (now largely the former “moderate Republicans”) not far behind.

via Noam Chomsky: America’s Decline Is Real — and Increasingly Self-Inflicted | World | AlterNet.

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How Companies Learn Your Secrets – NYTimes.com

16 Feb

That little piece of plastic you have that gets you discounts at the supermarket? Well, it also lets the retailer learn your habits; that’s why the give it to you. The more the know about your habits, the more accurately they can sell to you.

Andrew Pole was hired by Target to use the same kinds of insights into consumers’ habits to expand Target’s sales. His assignment was to analyze all the cue-routine-reward loops among shoppers and help the company figure out how to exploit them. Much of his department’s work was straightforward: find the customers who have children and send them catalogs that feature toys before Christmas. Look for shoppers who habitually purchase swimsuits in April and send them coupons for sunscreen in July and diet books in December. But Pole’s most important assignment was to identify those unique moments in consumers’ lives when their shopping habits become particularly flexible and the right advertisement or coupon would cause them to begin spending in new ways.

In the 1980s, a team of researchers led by a U.C.L.A. professor named Alan Andreasen undertook a study of peoples’ most mundane purchases, like soap, toothpaste, trash bags and toilet paper. They learned that most shoppers paid almost no attention to how they bought these products, that the purchases occurred habitually, without any complex decision-making. Which meant it was hard for marketers, despite their displays and coupons and product promotions, to persuade shoppers to change.

But when some customers were going through a major life event, like graduating from college or getting a new job or moving to a new town, their shopping habits became flexible in ways that were both predictable and potential gold mines for retailers.

via How Companies Learn Your Secrets – NYTimes.com.

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The unemployed meet MacArthur’s tanks – Salon.com

16 Feb

Mass unemployment isn’t new at all,  of course. Which raises the question, generally asked about software, is it a ‘bug’ or a ‘feature’?

Another similarity between the “unemployed armies” of yesteryear and the Occupy movement is the brutal response by law enforcement. Witnesses expressed shock when the Oakland police sprayed tear gas at protesters and complained about the liberal use of billy clubs by cops in New York, but imagine Gen. Douglas MacArthur unleashing a deadly offensive of tanks, bayonets and torches on military veterans camping out in Washington, D.C. It’s all captured in the chilling video below.

via The unemployed meet MacArthur’s tanks – Salon.com.

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