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November 2, Creative Destruction and ‘Repealing the 20th Century’
Well, in a free-market capitalist system, there are always winners and losers. It's creative destruction. That just happens. It's unfortunate. But let's face it, if it weren't for that we'd still have buggy whip companies. —Senate candidate Ron Johnson (R-Wisc.)
Republican house minority leader John Boehner unveils 'Pledge to America'. As the Democrats have found, when governing, keeping promises to all segments of your supporters is not easy. (Photograph: Scott Applewhite/AP) As gutsy progressive Senator Russ Feingold (D-Wisc.) has come storming back in recent weeks despite the predicted Republican avalanche, Mr. Johnson is learning that "creative destruction" is not a good campaign slogan
Feingold highlight's Johnson's use of "creative destruction" in a powerful new ad featuring workers from Kimberly Paper explaining how they lost their jobs when new owner NewPaper shut down the most productive and technologically advanced paper plant in the state (as discussed here. and here).
Yet "creative destruction" is a remarkably apt term for the corporate strategies that have undermined America's productive base, wiping out 4.9 million industrial jobs and leaving more than 43,000 factories as vacant shells since 1994, when America' officially embarked on the era of "free trade" with Mexico and China. The "destruction" side has been all too evident.
Moreover, protecting Corporate America's ability to engage in creative destruction is the central reason behind the unprecedented flow of corporate money from the Chamber of Commerce and American Crossroads flowing into this midterm election season.
Sometimes, even some FOX broadcasters will express shock at the greed-driven shutdowns of plants and destruction of communities. Reflecting on the Polaris Corp.'s move from the small Wisocnsin town of Osceola to low-wage Mexico, Greta Van Susteren noted sympathetically,
It's a small town of about 2,500—515 employees, 600 families. So that means essentially that every single family lost a job. ... A company like this wiping out a town and moving to Mexico and it's already making 89 percent growth in its stock in a year is not contributing to our economy.
Hardcore rightist Steve Moore of Wall Street Journal editorial page, admitted, "That was the amazing thing about the story. [Polaris] profits were up nearly 90 percent." But he quickly added, in a remarkably revealing (and callous) statement, "but then this company's primary mission isn't to grow the town, it's to grow their own profits."
JOB DESTRUCTION CENTRAL PART OF THE GAME
To grow those profits, CEOs have shown their creative side by shifting capital away from upgrading factories to betting on the Wall Street casino and exporting more and more productive jobs to Mexico, China, and India, among other low-wage nations.
It has proven remarkably lucrative for them, as CEOs in the top nation's top 100 firms have seen the pay gap between them and their workers rise from 45 to 1 in 1970 to astronomical proportions in 2006, reaching 1,723 to 1, as Les Leopold notes in The Looting of America.
Of course, when economist Joseph Schumpeter coined the term "creative destruction" in 1942, he had something entirely different in mind. He envisioned a sometimes brutal transition in which capitalism's innovations destroyed outworn productions processes and products and replaced them with superior new methods and opportunities.
He didn't envision an economy where the chance for higher profits in another field meant the wanton destruction of profitable and productive facilities making goods and services that were in demand--and the resulting loss of good jobs.
But in today's America, profit-driven job destruction rules. Virtually no new middle-class opportunities are being created to make up for those being wiped out, with job growth under 1% in the last decade.
The unemployment situation is actually far grimmer than anyone imagines, and there is little talk about its profound long-term health effects on its victims. Former NY Times reporter and author David Cay Johnston has revealed that real joblessness is actually more than twice the official rate. He explains, drawing on official data, that U.S. underemployment and unemployment is worse than we are generally told—around 22 percent, all told."
'REPEALING THE 20th CENTURY'
We have already returned to pre-Depression levels of inequality:
Income disparity in the US is now as bad as it was right before the Great Depression at the end of the 1920s. From 1979 to 2006, the richest 1% more than doubled their share of the total US income, from 10% to 23%. The richest 1% have an average annual income of more than $1.3 million. For the last 25 years, over 90% of the total growth in income in the US went to the top 10% earners - leaving 9% of all income [growth] to be shared by the bottom 90%.
Conservative Universty of Chicago law professor Richard Posner once proudly declared that his agenda could be characterized as "repealing the 20th century..." That also accurately describes the agenda of Ron Johnson and all the other Republican candidates, reciting in robotic fashion the need to restore economic growth by creating a smaller government--and settling for "no compromises," as GOP Minority Leader John Boehner snarled.
The mystical connection between getting out of the recession and cutting government spending is somehow never explained (or challenged much by media figures), just declared emphatically and incessantly. "Taxes cost jobs," Republican ads billboards tell us. The areas of government service to be cut are never specified, as the Republicans religiously adhere to the advice of their media guru Frank Luntz. "This campaign isn’t about specifics," Ron Johnson once declared.
Johnson was trying to conceal both his lack of knowledge and his true agenda, but he's partly right.: This electoral battle between him and Feingold—ike many others across the nation—is not about details.
It's between those who seek to proceed with "creative destruction" of the U.S. productive base and the reforms for which working families successfully fought, and those who seek to protect and extend democracy and justice. At heart, this election is about whether or not we will continue to effectively repeal the econimic gains of the 20th century.
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77 Comments so far
Show All"when America' officially embarked on the era of "free trade" with Mexico and China."
The US does not have a free trade agreement with China.
http://www.ustr.gov/trade-agreements/free-trade-agreements
Apparently it doesn't need one. If you examine the site below, you can see the rankings of the largest trade partners. For 2010, through August, China is at number two, with 285 billion in total trade. Canada is number one, at 345 billion.
http://www.census.gov/foreign-trade/top/dst/2010/08/balance.html
more here
http://www.foreign-trade.com/highlights.htm
"The US does not have a free trade agreement with China."
Wrong, China "Permanent Normal Trade Relations" is the equivilant of "free trade" with China. You just have to get past the misnomer and look under the cover.
pink mist
Gutsy progressive Senator? Where? That is oxymoronic.
The author of this article has a very short and/or selective memory. GATT/WTO/NAFTA etc. were approved of by a bipartisan consensus.
The little differences between the two corporate R/D brands is that the Rs are usually a bit more honest about their agenda. And the Ds are more slick and sophisticated in their lies.
No matter who wins, policies shift ever-rightward just like they have in the last few years. I guarantee it
Russ Feingold is very much preferable to the Republican running against him. Period. You can complain about a lack of real socialists in the US Senate, but on Nov. 2, if you live in Wisconsin, you will have only a choice between Feingold and the Republican. Any claims that they are the same is absurd.
Yeah.
Some freakin choice eh, and you call any claim otherwise absurd? This happens every election cycle. This aint democracy it is tyranny of the Duopoly. Don't like it? Too f'in bad eh? It is absurd to believe that you have democratic choice, you vote how you are told to.
I live in CA and although Boxer is in danger of losing her Senate seat, I still refuse to vote for her. That is not absurd, it is called voting for folks who represent your interests. The absurdity is believing that a corrupt system will produce outcomes that are otherwise. You must have a very short memory as this happens every election cycle, over and over and over and over - the lesser of two evils. And look where it has gotten us.
So go ahead and vote for Feingold, if it makes you feel good, because that is all that will come of it.
Carly "The destroyer" will better represent your interests????? Har de har har har
He doesn't support Carly although you may be assuming it just because he does not mention her. He knows that Barbara Boxer is useless at this point. Where was she on confirming John Roberts to SCOTUS or on her support on the disaster health care legislation? She has soured on being progressive and slowly slipped into sellout mode. Instead of asking socialist about Carly Fiorina, you should ask him to let you know why he doesn't support Boxer and let him discuss Boxer issue after issue so that you will understand and not call him a "republican".
Jennifer,
Great point.
Thank you.
C :)
That's the sort of ignorance and juvenile politics we are faced with JB, you are right. The Duopoly loyalists can't see their way out of a paper bag and have very poor imaginations to boot. Although the winner takes all sham favors only two parties, there are more folks on the ballot. And I can always write-in Tom Morello (CA, Communist) for Senator.
I for one hope that Boxer looses her senate seat.
She's one of THE WORST DLC Dimocrats--Feinstein too.
No better than the Repugs.....
They are worse as they should know better.
socialist
That the system has corruption is beyond doubt, that it is the only system current or likely is beyond doubt, though the last election and the way this one is forming suggest that Americans have finally tired of the corruption and self seeking on both Right and Left.
Refuting Boxer shows a civic responsibility that speaks well for our future. Though Carly would not be my choice for a driver, this is not about her, its about Boxer, Boxer has proven her "worth" and her "concern"
Clean out both sides.
Did Feingold vote YES on Obama's Healthcare deform?
Fu*k him if he did.
What's Feingold doing to defund these wars and speak out against the
Obama Admin?
Feingold is a Proud Sponsor of Genocide.
One can always write in "Rachel Corrie"
Meanwhile China has reportedly built the Worlds fastest supercomputer which gives them two of the most powerful Computers in the World and work towards doubling that Computers power within a decade.
With US students now being taught the World was created in 4000 BC, That Man Co-existed with Dinosaurs as the "Flinstones Documentary" outlines and that Noahs flood created the Grand Canyon it does not look too promising for US Hi-tech outside the ability to KILL peoples.
The US still has a significant lead over the rest of the World in Financial fraud.
China build those computers with Chinese technology did they?
Your description is hilarious, thanks!
I would like to point out, that the key compenet of any computer is the transistor switch even as millions of them are embedded in super chips.
This was a Japanese "Invention". All technology has roots in older technology.
Americans (some of them) can write. That hardly means writing an "American Technology" nor does it mean it a Sumerian one.
Why GW, everryone knows that writing was invented by Americans! :)
"Americans (some of them) can write."
About one in five these day's thanks to our "educator's" and their theories.
Check out where your Japanese inventor's were trained and the technology they used to "invent" that switch. And where that transistor came from in the first p[lace. No one love's us anymore!
What about those ancient Egyptians and their writings thousands of years ago? Americans didn't exist back then.
You know I'm kidding GW, don't help him!! :)
Ah, but of course. Silly me.
By the way, while I don't agree with you on the Republicans, I can't blame you for your decision and thinking. I came across a better discussion on why the word "progressive" is going the way of "liberal". Check out the latest backstabbing again Elizabeth Warren and read mikesoul's comments on Willie Brown.
http://www.alternet.org/news/148667
If you don't know how bad a sellout he is, the latest on his sellouts might anger you.
I've been coming under fire lately for saying that perhaps we would be better off if the Republicans take over until 2020 and the Democratic Party in its current form were demolished and rebuilt from ground zero. Just think, they and us could have been allies but the Democratic Party threw us all on different sides and here we are.
I think that we need a coalition progressive Democrats, Greens and other indies, and perhaps some Eisenhower Republicans to combat the rightwing coalition of Reagan/Bush/Limbaughian Republicans and Blue Dog Democrats. Maybe you could find some Eisenhower or Teddy Roosevelt Republicans in your state, no? A while back earlier this month on another site, some guy from your state said that the race for governor was close. He is a die hard Democrat and keeps believing the fallacy that a "vote for Green is a vote for Republican". What's going on down there?
Nothing is going on here. Gov. "Good Hair" (Perry the Snake Oil salesman) will be elected again. Its not close. There is no one in Texas at the moment of that stature you mention.
Texas will lead the nation in many ways, but providing another President is not one of them. Jeb Hensarling and he is a republican is the best we have and he ois certainly not ready to be a President.
We are still saying Mea Culpa's for letting George out of the state.
We need a coalition of people of good will and good sense no matter which side they favor as you say, but don't think for a moment the results of this election are for the republicans. Just as the last was about republicans, this one is about democrats. The republicans will be on a very short leash indeed.
I really don't know why so many oppose Warren. She has good ideas and so far is not going the extremist route.
"I really don't know why so many oppose Warren. She has good ideas and so far is not going the extremist route."
I would find myself asking the Bush/Limbaughian Republicans the same thing. Being frugal and from Oklahoma, there is no reason for anyone to oppose her. But this is America and having someone who believes in frugal thinking won't get an easy pass in this country's system. That's just my guess.
The transistor was invented at Bell Labs. Two of the three men who got the Nobel prize for it were Shockley and Bardeen (who later got another Nobel for explaining how superconductivity works). I don't remember the name of the third guy.
But it was a U.S. invention.
#3 was named Walter Brittain. He was born in China.
See: http://web.mit.edu/invent/iow/shockleyetal.html
The atomic bomb was also an American invention. And we are the only nation to ever use it against another people. I am hard pressed to think of a more cruel, hateful, and destructive act, so I am less than sanguine about the benefits of American technology, or indeed any "advanced" technology. Technology is not neutral. It serves its master, and the current master is the corporations who "own" the rights to various technologies. The reality is that most technology is being used against the people to subvert the will of the people.
As for this article, I think Johnson is using an oxymoron in calling offshoring "creative destruction." I think the term he is looking for is simply destruction. Or maybe parasitism?
What I want to know is: can we offshore these jokers as well when they ship the factories overseas?
I see no reason at all not to offshore anyone that favors foreign or company interests over the American worker and citizen or our country in general.
Remember we have never used the atom bomb again or used it to rule the world, something often forgotten. Consider if it had been the Japanese that had gotten it first or the Germans. Puts it in perspective.
Well I was wrong on the Japanese source BUT...as per this link it was NOT Invented at Bell Labs. They simply reinvented it.
http://www.porticus.org/bell/belllabs_transistor1.html
The "transistor" had been described and used by a Canadian and a New Zealander prior to the Official claim of those at bell labs "inventing" it.
>>It’s perfectly clear that Bell Labs didn’t invent the transistor, they re-invented it. The fact that they totally failed to acknowledged the pioneer work done by others can be explained by human nature—pride, arrogance, ignorance or plain self-interest. It’s perfectly true that the world wasn’t ready for previous incarnations of the transistor but that was no reason for denying that Lilienfeld patented the original solid-state triode oscillator/amplifier well before others claimed all the credit. But that’s life; it was not the first time and doubtless not the last.
Another example of this is "Talking films". It was attributed to Thomas Edison yet the historic record shows a Frenchman developed the technology years earlier. Indeed samples of his film with the encoded sound including in a stripe down the side still exist and predate Edisons official claims.
Very much the same happens in the Drug Industry with Drug companies claiming to "Invent Cures" and treatments when in fact they simply find the active ingredients in natural remedies used by peoples for thousands of years.
The point is this. All science and knowledge is based on older science and knowledge. All countries freely take advances of other countries and adapt, develop and improve upon the same. The Romans adopted many Greek and Egyptian technologies and improved upon them calling them their own.
China once lead the world technologically and many of their "Inventions Stolen" by the West then reworked and improved upon as Chinese technology stagnated.
With US schools now teaching "Creationism" as science and with them deliberately leaving out Critiques of Slavery or causes of the Civil War or Unionism and so on so as to train "Patriots" who will not question the information being provided to them, the USA IS in decline as it rushes to embrace the 19th century and the concept of excpetionalism.
It no different really then teaching Chinese students all thsoe years ago that China the Center of the Universe and having the "Mandate of heaven" Indoctrination is being confused for education.
"With US schools now teaching "Creationism"
Where?
Texas.
"I can hire one half of the working-class to kill the other half."
--Jay Gould, Gilded Age rail tycoon and real estate speculator
Recent poll numbers aired on PBS News Hour last night suggest that in regions of the country suffering growing rates of home foreclosure, the former or soon-to-be-former owners of those homes tend to increasingly politically align themselves with growing Tea Parties in the same areas. Most of these folks are not part of the earlier cohort of folks who lost their homes overwhelmingly due to inability to pay sub-prime or adjustable rate mortgages, but are folks with standard 30 year fixed rate mortgages who can no longer pay their house notes because they've lost their jobs. Continuing government lay-offs and insufficient job creation over coming years will feed this monster.
It's easy for many of us middle-aged & older progressives to forget that the generation of Americans now in what should have been their most productive years (between 20 and 35 years of age) have been subjected their entire lives to right-wing and far-right propaganda indoctrination and deteriorating public schools that offered no other coherent explanation of history or current events from an authentically liberal or progressive perspective. Religious fundamentalists have also had a growing negative effect on public school history, literature and social studies texts and society in general over the last 30 years.
So it's no wonder that as the lay-offs, insufficient job creation, home foreclosures (and resultant loss of neighborhood equity) continue for what may be years with no end in sight, and incompetent, sold-out politicians dominating both major Parties lack the brains, integrity or guts to do what needs to be done to preserve some sense of decency and social compassion in this increasingly barbaric country, that these ignorant and/or brainwashed generations losing their homes are predictably reacting by moving to the irrational but familiarly ultra-materialist far-right. That far-right serves them up poorer, more vulnerable scape-goats and falsely justifies the notion of limitless greed that should be preserved at all other costs above the law or any attempt at sane regulation.
Most of their men, especially, have been listening to Rush Limbaugh all their lives. He began dominating the white male 18-to-35 demographic in the early 1980s and that went on for over a decade until Fox News, Sean Hannity, Lou Dobbs and Glenn Beck came on the scene to aid and abet this fascist agit-prop. CNN gradually moved to the far-right after Ted Turner sold out controlling interest to AOL-Time Warner in the 1990s and eventually began providing platforms for evil clowns like Dobbs and Beck.
The upshot of all this is that it's going to take time for these newly foreclosed-upon, standard 30 year fixed mortgage borrowers to economically fall into the growing, disenfranchised lower-class and fully realize that the kind of might-makes-right, cannibal casino capitalism they've worshipped all their deluded lives is leaving them and their families nowhere with nothing.
They've got to hit a few hard trees on the way down first: They've got to exhaust their "big government" unemployment benefits. Then they've got to run through their savings to cover monthly expenses. They've got to start selling off stock and liquidating IRAs. They've got to sell off material possessions at yard sales and online. Then they've got to see their spouses and children suffer from humiliation, inability to afford the latest electronic goodies, nice clothes, cars, private schools, their children being shared out to other relatives, their parents wandering from city-to-city or State-to-State looking for jobs that no longer exist, and all the intensifying misery and psychological hell that goes with it.
If a Brownshirt movement centered around returning unemployed war veterans doesn't merge with the Tea Baggers into a full-blown Nazi movement that absorbs these volk first, then many of them will gradually realize that the only human beings with any real answers to their problems are authentic, pro-cooperative movement, socially compassionate progressives, socially compassionate liberals (many of whom will be going through their own intense self-re-education out of blind corporatism & militarism), and some Kropotkinist back-to-the-land Left libertarians.
Will that realization be timely enough and wide-spread enough to prevent the envelopment of America by nakedly fascist barbarism and Balkanization? That's definitely not going to be answered by this mid-term election either way. The forces already unleashed in this country (and around the world) will take years to play out. It might be better to let the traditional seamless incompetence of the post-1970s Right and far-Right to actually govern hit the realpolitik fan over the next two election cycles BEFORE the Tea Party foreclosed-upon and unemployed veterans add millions more to their numbers. It will be a stark object lesson in butt-sweating fear for the entire nation. But it might terrify some of the more left-leaning Dimocraps into some courageous sense to become splitters and call out their traitor DLC "leaders." It might be the very last chance for the poor and progressive to unite into a new movement. Think of it as an early smallpox vaccination. Sure, there's a risk, but it's better than facing full-blown smallpox with no (in this case psychological) immunity whatsoever.
Much of what is happening in the world and in the country now, and what will soon happen, is historically unprecedented. By 2020 we will either have a very withered and very different United States whose collective soul will be like a 3rd degree burn victim, but which is still capable of some gradual healing, or a scorched earth dystopian toxic nightmare that few of us--even those of us who know history--can now imagine.
Really nice. This took you a little time. I'm pecking on IPhone. Can't write much. Two things. "Nazi" - Nationalsozialist - will be "Nakap" - Nationalkapitalist, or more likely "Nacap" due to an evolving of the prototype here within the US. The second thing is there is a strong possibility that there may not be a US in the next 10 or 20 years, but rather a few sets of more or less confederated states from todays 50. Anything is possible.
"Nacap", eh?
It'll slip easily into the Amerikan acronym alphabet soup lexicon; it's a subtle blend of ASCAP and NASCAR. ;)
metal, great post in a horrible sort of way.
Unfortunately I agree with so much of what you've said.
Big difference now from 1939-40 when by helping England and by getting into "The War," all of our potentials of a thriving industrial society and military power were unleashed and eventually came to fruition, and what a huge market the post-war Baby Boomers came to be.
END of THE GREAT DEPRESSION to SUPER POWER, industrial as well as militarily.
Now ... aging Baby Boomers with all kinds of conditioned-in medical problems "requiring"16 pills a day; shallow, ignorant people; U.S. industries now in China, India, other Asian and developing countries; the government without moral leadership, just Corporate & Military greedheads and zealots and desire for unlimited war as a money-making "system."
Pain transforms: sometimes too much in the way of bitterness, hardness, a loss of soul; sometimes it transforms by deepening awareness, by awakening compassion, by
pushing a human to be fully human in the best sense.
What will it be here ... "a scorched earth dystopian toxic nightmare" or evolvement to fully alive, fully aware humans whose values have matured away from glitz and trinkets to a connected, collective human family whose cooperative business is to heal the earth and create simpler life-styles based on helping each other rather than hurting each other. Ironically, we need to live similarly to the Native Peoples' life-style that we repressed, oppressed, condemned and massacred away.
We'll find out whether the earth becomes a smoking ruin or begins to thrive with the emergence of the new, possible human.
Any bets?
/cm
I'm an optimist and "fully aware human whose values have matured." I hope others will join us.
CM, good stuff!
Cicero: "Freedom is participation in power."
All bets are off at this point so far as I can see. Brace for multiple impacts, chaotic responses and inept disaster capitalism that is orders of magnitude to small and incompetent to remedy any of the real underlying problems
Watching the violence of the Tea Party leaders in Alaska and Kentucky, you should add to your brilliant analysis the Civil War that is coming to America.
Also, we will reach a point where we no longer have the intellect, capacity, drive, or even people to keep the DOD going.
There will come a day when our enemies ( China, possibly Russia ) will be able to drive us into submission because we will no longer know how to make the tools to even fight our wars. Why even now, Chinese factories are providing uniforms for our armed forces and our 'magic weapons' we use to hunt terrorist rely on Chinese neo-dyn magnets.
My only question is how will the civil war be fought. It is not like the old days where you lived in the North and I lived in the South.
This is really a civil war of the Tea Pary/Republican against everyone else....
But mark my words, the young women in Kentucky who only survived because her assailants knew they were being filmed, was the first salvo in the 2nd civil war of the United States.
Cicero: "Freedom is participation in power."
I see it as an armed Balkanization similar to post-Tito Yugoslavia than a North/South or East/West geographically split Civil War. The major fracture lines will be heavily populated areas on the coasts versus interior Bread Belt States and more rural areas. Also, I thought most of our military's uniforms were now made in Honduras.
" Religious fundamentalists have also had a growing negative effect on public school history, literature and social studies texts and society in general over the last 30 years."
And they seem to have taken over the Air Force Academy too. Not good!
"At heart, this election is about whether or not we will continue to effectively repeal the econimic gains of the 20th century."
that's guaranteed at this point no matter what's the outcome of this election.....
The tea-partyists will be repealing the Enlightenment before we know it.
The good part of the 20th century is already nearly repealed while the bad part remains and will only get worse. The election results are irrelevant.
Metal, that's the script and the actors are already on stage. The only thing you've left out of this devastating analysis is the ecological disasters that will make life even more unbearable for an American lumpenproletariat.
As for what Fascism will do to the US: Hitler's Nazi Party created jobs for their millions of unemployed by gearing up for war, just as our Defense Dept has recruited the unemployable and the White House created the wars to send them to. That policy destroyed Germany and it is destroying the US. Do you see any other country coming to our rescue? The Chinese? the Indians? South America? The EU? I don't.
Back to the Dark Ages, before Television, airplanes, taxes...
Is this guy talking about Bill Clinton and Glass-Steagall, NAFTA, Iraq Sanctions, etcetera?
Maybe he was sleepwalking during that Neanderthals' reign of terror.
All these jackass donkey promoters have to push is fear. The Repubs and Dems should not be seen as separate. They are complimentary pieces of the State apparatus.
Seen more accurately there is actually no election occurring at all. There is only a forced validation of tyranny with slightly different flavors of boot offered for our necks.
mcoyote,
Well stated.
But coyote, everyone else is claiming its ONLY the republicans and the right that are at fault. There can be no blame attached to this mess to the democrats or even to anyone on the left I'm assured almost daily.
Thanks for pointing out Glass-Stegall the mother of their depredations, NAFTA and lets not leave out the Health Care fiasco, the refusal to address any economic problems or faults in the last two years, among others.
Corporate America, you are so silly, and scary.
"Taxes cost jobs!" Wow, how you know, you don't pay any!