Fall 1941: Pearl Harbor and The Wars of Corporate America

By Jacques R. Pauwels

Myth: The US was forced to declare war on Japan after a totally unexpected Japanese attack on the American naval base in Hawaii on December 7, 1941. On account of Japan’s alliance with Nazi Germany, this aggression automatically brought the US into the war against Germany.

Reality: The Roosevelt administration had been eager for some time to wage war against Japan and sought to unleash such a war by means of the institution of an oil embargo and other provocations. Having deciphered Japanese codes, Washington knew a Japanese fleet was on its way to Pearl Harbor, but welcomed the attack since a Japanese aggression would make it possible to “sell” the war to the overwhelmingly anti-war American public.

An attack by Japan, as opposed to an American attack on Japan, was also supposed to avoid a declaration of war by Japan’s ally, Germany, which was treaty-bound to help only if Japan was attacked. However, for reasons which have nothing to do with Japan or the US but everything with the failure of Germany’s “lightning war” against the Soviet Union, Hitler himself declared war on the US a few days after Pearl Harbor, on December 11, 1941.

Continued

Kindergarten Threats

By Stephen Gowans

New York Times reporter William J. Broad wrote today about the apocalyptic vision of fiction-writer and Republican presidential hopeful Newt Gingrich. [1] Gingrich warns that U.S. bêtes noire Iran or North Korea could send the United States back to the Middle Ages, detonating a nuclear missile high above the United States, which would create an electromagnetic pulse that knocks out anything that runs on electricity.

“Millions would die in the first week alone,” Gingrich cautions in the foreword to “One Second After,” a novel written by William R. Forstchen, a Gingrich friend and co-writer with Gingrich of historical novels. The novel describes a calamitous scenario in which an electromagnetic pulse (EMP) attack cripples the United States.

Gingrich announced before the American Israel Public Affairs Committee’s annual policy conference in May 2009 that he favored “taking out Iranian and North Korean missiles on their sites” to prevent either country from delivering an EMP Armageddon to the United States.

Gingrich is not alone in calling for strikes on Iran and North Korea.

In a March 30, 2010 piece, Washington Post columnist Walter Pincus wrote that the then head of the US strategic nuclear command, former astronaut General Kevin P. Chilton, had told US senators that “no nuclear power has been conquered or even put at risk of conquest.” Chillingly, Pincus added that Chilton’s observation is something that “others in government ought to ponder as they watch Iran and North Korea seek to develop nuclear capability”…a not so veiled call for wars to prevent North Korea and Iran from eliminating the risk of their being conquered. [2]

Equally chillingly, in a July 18, 2008 New York Times op-ed, Israeli historian Benny Morris urged the United States “to use bombs to stave off war”…that is, for “the US to use its formidable military to destroy Iran’s nuclear facilities”. (Using bombs to stave off war is like using famine to stave off hunger.) To make his case, Morris constructed a fantasy about Israel being “threatened almost daily with destruction by Iran’s leaders,” adding bizarrely that they “are likely to use any bomb they build…because of fear of Israeli nuclear pre-emption.” [3] In other words, because Israel threatens to pre-empt Iran, Iran must be pre-empted, otherwise it might pre-empt Israel’s pre-emption.

Creating Fictions

As the Cold War drew to a close, Colin Powell, at the time the top US solider, warned: “I’m running out of demons, I’m running out of villains. I’m down to Castro and (then North Korean leader) Kim Il Sung.” [4] On the eve of the Soviet Union’s demise, cold warriors Robert McNamara, Carl Kaysen and George W. Rathjens echoed Powell’s warning in an autumn 1991 Foreign Policy piece: “With the end of the Cold War,” they wrote, “it is hard to construct even a semi-plausible military threat to the United States.” [5]

Keen to keep US taxes flowing to the Pentagon and straight to the bottom lines of Lockheed-Martin, Northrop Grumman, Boeing, and other profit-soaked US defense contractors, US officials took on what the cold warriors envisaged as a difficult task. They puffed up military midgets into military Gargantua, and found dire threats—an alleged genocide in Kosovo and WMDs in Iraq—where none existed. 9/11 sealed the deal.

Today Pentagon chief Leon Panetta can cite “North Korea and Iran as persistent threats” which the US military must remain bulked up to “to deter and defeat,” [6] with few people batting an eye. At $700 billion per year [7], US military spending is greater than that of the next 19 biggest spending countries combined, [8] many of which are US allies, and none of which are North Korea or Iran. And the New York Times turn over its pages to the Benny Morrises of the world as a platform to urge the United States to prevent wars by waging more of them. It turns out that Powell’s and McNamara’s fears that the United States had run out of demons to justify the pumping of billions in profits into defense contractors were based on a misjudgment of the prowess of the propaganda system to crank out compelling fiction.

Getting Gingrich

Maybe it was a desire to discredit Gingrich, a Republican whose hand on the tiller of the ship of state may be too frightening for the liberal New York Times to contemplate that led Broad to puncture some of the myths that have been carefully constructed about Iran and North Korea as nuclear menaces–myths the Times itself has been no stranger to lending credence to. Whatever the case, the Broad article ran against form, challenging Gingrich’s fear-mongering.

Broad cited Philip E. Coyle III, a former head of Pentagon arms testing, who has complained that Gingrich and his fellow fear-mongers are puffing up Iran and North Korea “with the capabilities of giants.” Broad then pointed to other military experts who say that North Korea and Iran “are at the kindergarten stage of developing nuclear arms.” To this might be added that it’s far from certain that Iran is even at the kindergarten stage, while North Korea, the most sanctioned country on earth [9], will find its US-imposed poverty keeps it at the kindergarten stage well into the future.

“To even begin to attempt to do what Mr. Gingrich fears,” Broad writes, Iran and North Korea “would have to perfect big rockets, powerful bombs and surreptitious ways to loft them high above America.” Yet “Iran is having trouble keeping its missile bases from blowing up and North Korea cannot seem to get a big rocket off the ground without it tumbling out of control.”

Broad’s reporting deflates myths about an EMP attack, but it is just as damning to the more widely-circulated myths about North Korea and Iran threatening the United States and its allies with a garden variety nuclear strike.

The Real Threat

Still, it’s true that both countries pose a threat—though not a military one and not to the bulk of US citizens. Iran and North Korea, like Gaddafi’s Libya, Saddam Hussein’s Iraq, Milosevic’s Yugoslavia, and Mugabe’s Zimbabwe, defy a US-favored regime of free-trade, free-markets and free-enterprise–one that opens doors to US enterprises and keeps foreign profits pouring into Wall Street.

According to the US Congressional Research Service, numerous US sanctions have been imposed on North Korea for reasons listed as either “communism”, “non-market economy” or “communism and market disruption.” [10] Iran, as the US Congress of Library’s country study documents [11], favors a host of state-led economic development measures that, like North Korea’s publically-owned and planned economy, walls off large parts of the country’s markets, resources and labor from foreign corporations, banks and investors.

It is the limitations on US elite economic interests, and the threat of their becoming a model for other developing countries, that drives Gingrich, Pincus and others to puff up military pipsqueaks into giants and to elevate kindergarten students into MIT graduates. Transformed into threats, they become seemingly legitimate targets for all manner of aggressions—sabotage, economic warfare, funding of overthrow movements, military harassment, and, at times, overt war. The aim is replace leaders who favor independent, self-directed economic development, with puppets who will throw open the country’s doors to US exports and investment and co-operate with the United States militarily.

Marionettes

Burhan Ghalioun is a fine example of an aspiring puppet. He is the president of the Syrian National Council, an exile group linked to the Movement for Justice and Development [12]. The latter has received $6 million in US government funding to organize opposition to the Assad government, according to a WikiLeaks cable [13]. The supplicant marionette, who has met with Hilary Clinton and has already persuaded French Foreign Minister Alain Juppe and British Foreign Secretary William Hague to declare his organization “a legitimate representative of the Syrian people” [14] is promising US officials that if they bring him to power he will “cut Damascus’s military relationship to Iran and end arms supplies to Middle East militant groups such as Hezbollah and Hamas” while integrating Syria with “the region’s major Arab powers”, [15] a reference to the Gulf Cooperation Council, the club of US-allied oil tyrannies which recently used military force to crack down on a democratic uprising in Bahrain, a member country, and home to the US 5th Fleet, the main military threat against Iran. (Bahrain, for the record, is a foreign investor’s paradise, ranking number 10 on the Wall Street Journal/Heritage Foundation Index of Economic Freedom). Ghalioun’s eagerness to become entangled with a conspiracy of democracy-abominating absolute monarchies speaks volumes about his commitment to democracy and the direction of a possible Syrian National Council-led revolution in Syria.

1. William J. Broad, “Among Gingrich’s passions, a doomsday vision”, The New York Times, December 11, 2011.
2. Walter Pincus, “As missions are added, Stratcom commander keeps focus on deterrence”, The Washington Post, March 30, 2010.
3. Benny Morris, “Using Bombs to Stave Off War,” New York Times, July 18, 2008.
4. Carl Kaysen, Robert S. McNamara and George W. Rathjens, “Nuclear Weapons After the Cold War”, Foreign Affairs, Fall 1991.
5. Ibid.
6. Thom Shanker and Elisabeth Bumiller, “Weighing Pentagon cuts, Panetta faces deep pressures”, The New York Times, November 6, 2011.
7. Ibid.
8. “Defence spending: The world’s biggest armies in stats,” The Daily Telegraph, http://www.telegraph.co.uk/news/uknews/defence/8002911/Defence-spending-the-worlds-biggest-armies-in-stats.html
9. Then US President George W. Bush had called North Korea “the most sanctioned nation in the world”. U.S. News & World Report, June 26, 2008; The New York Times, July 6, 2008.
10. Dianne E. Rennack, “North Korea: Economic sanctions”, Congressional Research Service, October 17, 2006. http://www.au.af.mil/au/awc/awcgate/crs/rl31696.pdf
11. The Library of Congress. Iran: A Country Study. 2008. http://lcweb2.loc.gov/frd/cs/irtoc.html
12. The leader of the Movement for Justice and Democracy is Anas Al-Abdah. He is a member of the SNC.
13. James Rosen, “U.S. Fears Syrian Reprisals After WikiLeaks Disclosure,” FoxNew.com, April 18, 2011.
14. Jay Solomon, “Clinton Meets With Syrian Opposition”, The Wall Street Journal, December 6, 2011.
15. Jay Solomon and Nour Malas, “Syria would cut Iran military tie, opposition head says”, The Wall Street Journal, December 2, 2011

70 Years Ago, December 1941: Turning Point of World War II

by Jacques R. Pauwels

World War II started, at least as far as the “European Theatre” was concerned, with the German army steamrolling over Poland in September, 1939. About six months later, even more spectacular victories followed, this time over the Benelux Countries and France. By the summer of 1940, Germany looked invincible and predestined to rule the European continent indefinitely. (Great Britain admittedly refused to throw in the towel, but could not hope to win the war on its own, and had to fear that Hitler would soon turn his attention to Gibraltar, Egypt, and/or other jewels in the crown of the British Empire.) Five years later, Germany experienced the pain and humiliation of total defeat. On April 20, 1945, Hitler committed suicide in Berlin as the Red Army bulldozed its way into the city, reduced to a heap of smoking ruins, and on May 8/9 German surrendered unconditionally. Clearly, then, sometime between late 1940 and 1944 the tide had turned rather dramatically. But when, and where? In Normandy in 1944, according to some; at Stalingrad, during the winter of 1942-43, according to others. In reality, the tide turned in December 1941 in the Soviet Union, more specifically, in the barren plain just west of Moscow. As a German historian, an expert on the war against the Soviet Union, has put it: “That victory of the Red Army [in front of Moscow] was unquestionably the major break [Zäsur] of the entire world war.”[1]

Continues here.

Seeing the US Everywhere

By Stephen Gowans

The New York Times ran an article today about Washington’s plans to strengthen its military presence in Australia. Australia is to be used by the US military “as a new center of operations in Asia” from which the United States will seek “to reassert itself in the region and grapple with China’s rise.”

The problem for policy planners in Washington is that “China has become the largest trading partner with most of the countries in the region, undercutting American economic influence.” And so the United States will beef up its presence in the Pacific to prove that “it intends to remain a crucial military and economic power” in Asia.

In simple language this means that China has secured export and investment opportunities in its own backyard and that US corporations, banks and investors want them for themselves. So Washington will use its military to take them away from the Chinese.

For obvious reasons, China thinks this smacks of old-fashioned gun-boat imperialism.

Not so curiously, the headline of the Ian Johnson and Jackie Calmes article announcing Washington’s plan to muscle China out of economic primacy in the region put a chauvinistic spin on the story: “As US looks to Asia, it sees China everywhere.”

Imagine China setting up military bases in Venezuela and sending aircraft carriers to the Gulf of Mexico in order to “assert itself in the region.” How strange would seem a newspaper headline that read: “As China looks to the Gulf of Mexico, it sees the United States everywhere,” as if this were an unexpected discovery.

The New York Times’ headline could have been more aptly written this way: As China looks around its neighborhood, it sees the US military everywhere. But then this would have made US imperialism uncomfortably obvious.

An article by Johnson and Calmes’ New York Times’ colleagues Nada Bakri and Rick Gladstone, also in today’s edition of the newspaper (“Syria faces new threats as opposition seeks allies”) is equally worthy of comment. Their article used “one human rights group, the Syrian Observatory for Human Rights” as a source for the number of people killed in recent clashes with Syrian government forces.

One might get the impression that the Syrian Observatory for Human Rights is a neutral human rights monitor without a political agenda. After all, Bakri and Gladstone refer to it as “one human rights group”, and nothing more.

Were it an opposition group seeking to overthrow the Syrian government we might think twice about trusting it as a source of unbiased information.

Well, think twice.

A statement posted to the group’s website on November 15, 2011, makes clear that it is more than just “one human rights group.” In the statement, the group calls for a no-fly zone over Syria “in accordance with its duty and commitment to echo the voice of Syrian Popular Revolution.”

The Observatory makes no secret of the reason it wants “the international community” (which is to say, Nato) dropping bombs on Syrian military installations and Assad supporters: “the acceleration of overthrowing Syrian brutal regime.”

Meanwhile, the Gulf Cooperation Council, the group of US-allied oil autocracies that had been acting as arms and propaganda suppliers to Libyan rebels, played a key role in pushing through the recent Arab League suspension of Syria.

The Council has also become a key to Washington’s plans to continue to dominate the Persian Gulf, even as—or rather, precisely because–US troops are being withdrawn from Iraq.

Both US Defense Secretary Leon Panetta and the Chairman of the Joint Chiefs of Staff have said that the United States will “maintain a large military presence in the region, in part as a counterweight to Iran.” The US military will rely on “the six nations in the Gulf Cooperation Council — Saudi Arabia, Kuwait, Bahrain, Qatar, the United Arab Emirates and Oman. While the United States has close bilateral military relationships with each, the administration and the military are trying to foster a new ‘security architecture’ for the Persian Gulf that would integrate air and naval patrols and missile defense.”

It’s not only China that is hemmed in by the US military. As Iran looks around its neighborhood, it too sees the US everywhere.

In Libya, the end of 42 years of….

…self-directed economic development aimed at giving Libyans a stake in their economy.

I’m not saying Gaddafi’s Libya was a model society, but it did offer its own citizens advantages that are conspicuously missing in Washington’s Third World satellites.

Margaret Coker, writing in today’s Wall Street Journal (“Libya speeds oil output but sees hurdles ahead”) serves up an example of Gaddafi’s friendly-to-Libyans, not-so-friendly-to-overseas-investor policies. Among “many of (Gadaffi’s) heavy-handed state policies” were “foreign-currency exchange limits and a law that forced private enterprises to make Libyan employees shareholders of the business.” These policies “crimped corporate work during the Gadhafi regime,” writes Coker, by which she means encroached on the profits of Western banks, corporations and investors. Bad man.

In the same issue of the WSJ we learn that Washington is quietly funnelling bunker buster bombs and other ammunition to the group of anti-democratic oil monarchies that make up the Gulf Cooperation Council. The aim is to build up these despotic regimes as “a unified counter-weight to Iran” (“U.S. plans bomb sales in Gulf to counter Iran.”)

The GCC, it will be recalled, dispatched tanks and troops to crush a popular uprising in one of its member states, Bahrain, while it was also helping rebels oust the Gaddafi government in Libya. GCC member, Qatar, an absolutist state, was particularly helpful to the Libyan rebels, dispatching hundreds of ground troops to aid the cause of…

• (A) Building democracy in Libya?
• (B) Ending Gaddafi policies that crimped corporate work?

You decide.

Finally, yesterday’s WSJ ( “U.S. to build up military in Australia”) points to plans for “a new and permanent U.S. military presence in Australia…a step aimed at countering China’s influence and reasserting U.S. interests in the region.” Notes WSJ reporter Laura Meckler, the “South China Sea, which China considers as its sovereign territory…is important economically.”

Indeed it is.

Fortunately, the combined forces of the US Army, US Navy, US Marine Corps, US Air Force and the CIA exist to make sure the South China Sea—and every other economically important region of the globe—is available to Wall Street for its aggrandizement…and free from anyone who might exercise their sovereignty to impose policies that crimp corporate work.

Wars for Profits: A No-Nonsense Guide to Why the United States Seeks to Make Iran an International Pariah

By Stephen Gowans

Flipping idly through my morning newspaper, my eyes fell upon a headline, which, given its significance, should have appeared on the front page, but instead was tucked away at the back, on page A9.

“Israel won’t rule out attack on Iran”. (1)

Now, it’s true that Israel’s threatening to attack Iran is hardly news. Here was Ehud Barak, Israeli defense minister, over two years ago, talking about measures to dissuade Iran from continuing to process uranium: “We clearly believe that no option should be removed from the table. This is our policy. We mean it.” (2) And here was Barak just the other day: “We strongly believe that…no option should be removed from the table.” (3) Same defense minister. Same words. Same threat.

Yet while the threat may be old, its significance remains undiminished. One country is threatening to commit the supreme international crime: to attack another even though it, itself, has not been attacked by the country it rattles its saber at. Were Iran to threaten Israel, the headline “Iran won’t rule out attack on the Jewish state” wouldn’t be tucked away inconspicuously in the back pages of my newspaper. Instead, it would be shouted in bold letters across the front page. “My God!”, NATO state officials and editorialists would cry. “Iran is threatening to attack the Jewish state. Something must be done!”

But in this case it is Israel that is issuing the threat against a country which has, since its escape from US domination in 1979, been limned as dark and menacing, and so while no one wants war, surely it’s all perfectly understandable that the plucky Israelis should be declaring their determination to stand against the Judeophobic menace of the Islamic Republic. After all, isn’t Iran building nuclear weapons to wipe Israel off the map? Well, if you listen to the Israelis and their US protector, the answer is yes.

The Strangelovian Israeli historian Benny Morris declares that Israel is “threatened almost daily with destruction by Iran’s leaders.” To eclipse this threat, Iran must be wiped off the map before Iran does any wiping of its own. “Israel has no option,” Morris chillingly says, “but to use its nuclear arsenal to destroy Iran, unless the US uses its formidable military to destroy Iran’s nuclear facilities first.” (4)

Israeli prime minister Benjamin Netanyahu warns: “Iran is even arming itself with nuclear weapons to realize that goal (the obliteration of the Jewish state), and until now the world has not stopped it. The threat to our existence, is not theoretical. It cannot be swept under the carpet; it cannot be reduced. It faces us and all humanity, and it must be thwarted.” (5)

Ominous. But the idea that Iran intends to acquire nuclear weapons to obliterate Israel is pure flummery; a work of fiction, intended to create a frisson of fear.

So, why do I say this? First, we don’t know whether Iran intends to acquire nuclear weapons, or only the capability of producing them, or even that. An International Atomic Energy Agency report, released yesterday, tables evidence that Iran is secretly working on a nuclear bomb. So let’s assume for the moment that Iran’s leaders do indeed intend to build nuclear weapons.

It’s widely agreed that it’s highly unlikely that Iran would be able to build nuclear weapons while its nuclear energy program is still under the scrutiny of UN inspectors. A more likely scenario is that Tehran would develop the capability to produce a bomb from within the Nuclear Non-Proliferation Treaty (NPT), and once it had reached the point of being able to do so, would turn its capability into reality by withdrawing from the treaty, ejecting inspectors, and making a mad dash to develop a rudimentary arsenal. That’s what North Korea did, when, following the demise of the Soviet Union, the United States decided to re-target some its nuclear missiles from the USSR to the DPRK.

But would Iran ever get as far as being able to make a mad dash to status as the world’s newest nuclear-weapons state? The United States and Israel have made plenty of noise about bombing Iran’s nuclear facilities before Iran’s nuclear scientists ever reach the point of having the capability of producing nuclear weapons. Indeed, the threat to attack Iran’s nuclear facilities has been trotted out anew because the steps the United States and Israel have taken to sabotage Iran’s nuclear program–from the Stuxnet computer virus to the assassination of Iran’s nuclear scientists to punitive sanctions–haven’t stopped the program’s development, although they have certainly slowed it.

But let’s make another assumption. Let’s assume that despite US and Israeli efforts to cripple Iran’s ability to produce nuclear weapons, that Iran, despite these impediments, brings this capability to fruition, and furthermore, manages against the concerted opposition of the United States and Israel to develop a few nuclear warheads. Does the possession of warheads mean that Iran will use them–either to wipe Israel off the map or attack the United States?

No, it does not.

The idea that Iran is an “existential” threat to Israel comes from Iranian president Mahmoud Ahmadinejad’s alleged promise to wipe Israel off the map. US and Israeli political leaders have been invoking this chestnut for years to justify the assassinations, economic warfare, covert destabilization, and threats of military intervention used to undermine Iran’s nuclear energy program. The problem is, the allegation is groundless.

The firestorm started when Nazila Fathi, then the Tehran correspondent of The New York Times, reported a story almost six years ago that was headlined: “Wipe Israel ‘off the map’ Iranian says.” The article attributed newly elected Iranian President Mahmoud Ahmadinejad’s remarks to a report by the ISNA press agency.

Specialists such as Juan Cole of the University of Michigan and Arash Norouzi of the Mossadegh Project pointed out that the original statement in Persian did not say that Israel should be wiped from the map, but instead that it would collapse.

Khamenei stated, “Iran’s position, which was first expressed by the Imam [Khomeini] and stated several times by those responsible, is that the cancerous tumor called Israel must be uprooted from the region.” He went on to say in the same speech that “Palestinian refugees should return and Muslims, Christians and Jews could choose a government for themselves, excluding immigrant Jews.”

Khamenei has been consistent, stating repeatedly that the goal is not the military destruction of the Jewish state but “the defeat of Zionist ideology and the dissolution of Israel through a ‘popular referendum.’” (6)

To be sure, anyone who regards Israel as a “cancerous tumor” that “must be uprooted from the region” and replaced by a government freely chosen by the people who lived in Palestine prior to its conquest by Zionist settlers, is an existential threat to the idea of Israel as a Jewish state. But while the designation of Iran as an existential threat to the idea of Israel is literally true (in the sense that Iran doesn’t accept Zionism and therefore works against it by supporting such anti-Zionist groups as Hamas), the phrase “existential threat” is twisted to mean something more than intended: military destruction rather than collapse through a referendum.

Political leaders are in the habit of presenting non-threats into dire ones. A not particularly egregious example is provided by US Defense Secretary Leon Panetta, who, needing to defend the Pentagon’s Brobdignagian budget against possible cuts, recently “cited North Korea and Iran as persistent threats, and said that the military had to maintain ‘the ability to deter and defeat them.’” (7) Yet North Korea and Iran are not threats to the physical safety and welfare of a single US civilian.

First, Iran’s military is built for self-defense. It doesn’t have aircraft carriers, a large fleet of warships, strategic bombers, foreign military bases or a naval presence near US waters. The United States, by contrast, bases its Fifth Fleet in Bahrain, within shouting distance of Iran, directly across the Persian Gulf. Iranian warships won’t be found lingering menacingly in the Gulf of Mexico or patrolling the edges of US territorial waters.

Second, a graph nearby shows that Iran’s military spending, at $20B per annum, pales in comparison to the budgets of the United States ($700B) and even that of the United States’ regional allies ($102B). The US military budget is 35 times larger than Iran’s, and the sum of that of the United States, its invariable co-belligerent the United Kingdom, and Washington’s regional allies, is 43 times larger. The gulf in fighting ability supported by these expenditures is as yawning as the one between the New York City Police Department and a troop of Boy Scouts armed with BB guns.

As regards North Korea, the idea that it is a threat to the security of a single US civilian is even more absurd. Like Iran, North Korea’s military is built for defense, and it too has no foreign military bases, no aircraft carriers, no nuclear armed submarines and no strategic bombers, and it has never—unlike its compatriot neighbor to the south—sent troops abroad to fight in other country’s wars (as South Korean troops have fought in US wars.)

North Korean military expenditures are even more modest than Iran’s. Pyongyang spends an estimated $10B on its military (and that’s probably stretching it), many of whose members are engaged in agriculture and other civilian activities. (8) By comparison, South Korea (on whose soil are resident close to 30,000 US troops), spends $39B, while nearby Japan (home to 40,000 US troops) spends $34B. Together, these two US allies outspend Pyongyang on their militaries by a factor of 7 to 1. Add to this US defense expenditures and those of Britain—a country that can be counted on to docilely follow the United States into any war–and North Korea, surrounded by US troops and warships and whose air borders are incessantly menaced by the US Air Force, is outspent over 80 to 1. A threat? The claim is laughable.

And that understates the imbalance. What military budgets don’t reveal is the vastly superior destructive power of US military hardware (and that of many of its allies) compared to Iran’s and North Korea’s. The kill capacity of US strike aircraft, cruise missiles, and battleships is far in excess of the heavy artillery that figures so prominently in the North Korean armamentarium, for example.

And then there’s nuclear weapons. North Korea may (or may not) have an arsenal of a few warheads, and Iran may (or may not) be seeking one, but these rudimentary collections pale in comparison with the US, British, and Israeli arsenals arrayed against them. Would Iran attack Israel, or North Korea attack South Korea, with one or two nuclear missiles, knowing that to do so would invite a retaliatory tsunami of missiles from the target (in the case of an attack on Israel) or its hyper-armed patron, the United States, or both? The outcome of so foolhardy an attack would be game-over for either country.

“During the Democratic primaries, then candidate Hilary Clinton (now US Secretary of State) warned that if Iran attacked Israel, the United States would ‘totally obliterate’ Iran.” (9) Three years ago, Israeli “Infrastructure Minister Benjamin Ben-Eliezer went on record saying, ‘We must tell them: ‘If you so much as dream of attacking Israel, before you even finish dreaming there won’t be an Iran anymore.’” (10) It’s doubtful that the Iranians failed to get the message.

And then there’s the matter of Washington’s 2010 Nuclear Posture Review (NPR). If read superficially, the NPR would lead one to believe that US policy makers have finally figured out that the cardinal rule of nonproliferation is to abjure military aggression against non-nuclear states. Countries that aren’t threatened by nuclear powers have no need to develop nuclear weapons for self-defense. However, a closer reading of the review shows that nothing has changed. US president Barack Obama has stayed true to form, obscuring his pursuit of his predecessors’ policies beneath honeyed phrases that create the impression of change, where no change of substance exists.

The NPR declares “that the United States will not use or threaten to use nuclear weapons against non-nuclear weapons states”, even if they attack the United States, its vital interests or allies and partners with chemical or biological weapons. This differs, but only on the surface, from the policy of preceding administrations which refused to renounce the use of nuclear weapons against non-nuclear states. There are a number of reasons why the difference is apparent only.

While nuclear weapons are widely regarded as unparalleled in their destructive power, the United States is able to deliver overwhelming destructive force through its conventional military capabilities. A promise not to use or threaten to use nuclear weapons against non-nuclear states is not the same as an assurance not to use or threaten to use devastating military force. Six decades ago it was possible to obliterate a city through conventional means, as the Western Allies demonstrated in the firebombing of Dresden. If a city could be destroyed by conventional means more than half a century ago, imagine what the Pentagon could do today through conventional forces alone. Indeed, the NPR makes clear that the United States is prepared to shrink its nuclear arsenal partly because “the growth of unrivalled U.S. conventional military capabilities” allows Washington to fulfill its geostrategic goals “with significantly lower nuclear force levels and with reduced reliance on nuclear weapons.”

The NPR also provides a number of escape hatches that allow Washington to continue to dangle a nuclear sword of Damocles over the heads of Iran and North Korea. One is that nuclear weapons can be used, or their use threatened, against a country that is not “party to the NPT” even if the country doesn’t yet have nuclear weapons, or it is unclear whether it does. This is the North Korea escape clause. It allows Washington to continue to threaten North Korea with nuclear obliteration, just as it has done since the early 1990s when the US Strategic Command announced it was re-targeting some of its strategic nuclear missiles on the DPRK (the reason why North Korea withdrew from the NPT.)

Another escape clause allows Washington to reach for the nuclear trigger whenever it deems a country to have fallen short of “compliance with [its] nuclear non-proliferation obligations,” even if the country doesn’t have nuclear weapons and is a party to the NPT. This is the Iran escape hatch, intended to allow Washington to maintain the threat of nuclear annihilation vis-à-vis Iran or any other country Washington unilaterally declares to be noncompliant with the treaty’s obligations.

As for the United States’ commitment to refrain from reaching for its nuclear arsenal in response to a chemical or biological attack on itself, its vital interests (a term that defies geography and democracy, for how is it that the United States’ vital interests extend to other people’s countries?) its allies and its partners, this too is verbal legerdemain. As a careful reading of the NPR makes clear, the truth of the matter is that the United States will attack any country with nuclear weapons if such an attack is deemed necessary by Washington to protect its interests. According to the NPR, “the United States reserves the right to make any adjustment in [its commitment] that may be warranted…” Translation: We won’t attack non-nuclear weapons states with nuclear weapons unless we decide it’s in our interests to do so.

Finally, we need to ask whether either Iran or North Korea have a motive to attack the United States, and whether Iran has a motive to attack Israel. Iran’s leaders may abhor the Zionist conquest of what they see as territory important to Islam, but that doesn’t mean they’re willing to take on a suicide mission to deal a one- or two-nuclear missile blow to Israel—one which, by the way, probably wouldn’t destroy Israel, but would in all likelihood elicit a hail of retaliatory blows that would produce devastating damage to Iran. As for tangling with the United States, neither Iran nor North Korea want that. What they want is peaceful coexistence—to be left alone to develop in their own way.

The trouble is, the United States hasn’t the barest interest in peaceful coexistence, and the reason why is the key, not only to understanding US foreign policy, but to understanding why a US-led NATO spent months bombing Libya to drive Muamar Gaddafi from power.

But first, a digression. Critiques of US foreign policy often involve exposes of US hypocrisy. For example, critics might point out that the United States defends Israel, which has nuclear weapons and doesn’t belong to the NPT, while threatening to attack Iran, which belongs to the NPT, and doesn’t have nuclear weapons. Or that NATO bombed Libya to prevent the government there from using its military to put down an uprising but condoned Bahrain and Saudi Arabia using their militaries to put down an uprising in Bahrain. Some critics stop there, reasoning that if they’re going to muster opposition to US foreign policy, it’s enough to show that it’s built on hypocrisy. Or they show US behavior to be immoral, undemocratic or against international law and figure that showing this will rouse the indignation of people of good conscience. Other US foreign policy critics cogently show why US foreign policy couldn’t possibly be guided by the objectives US leaders say it is. But they stop there, leaving their audiences to scratch their heads, wondering, if not for the reasons stated, then why?

Liberals insist that US foreign policy makes no sense and that US leaders are confused, myopic, poorly motivated, or just plain dumb. An example of this point of view is offered by former US president Jimmy Carter, who contends that the conflict with North Korea can be resolved in half a day (11). Apparently US leaders have neither the political will nor smarts to do so.

The truth of the matter is that there is nothing to be gained for the corporations, investors and banks that dominate US foreign policy—the one percent who really matter in the United States–from peaceful coexistence with North Korea. Peaceful coexistence implies that each side poses a threat to the other, but North Korea, despite the rhetorical nonsense of political leaders seeking to justify Pentagon budgets, poses no threat to the United States. A $10B defense budget against a $700B one; aging aircraft whose pilots are grounded most of the time due to shortages of fuel; a puny arsenal of nuclear weapons; an army whose training time is partly displaced by engagement in farming; the most sanctioned country on earth, whose economy has been crippled by six decades of US economic warfare; a country of 24 million hemmed in to the south and east by US allies and US troops; no, North Korea is not a threat.

So how is it that peaceful coexistence would deliver anything in the way of improved security for Americans, which they already have in abundance anyway? It wouldn’t. The demand for peaceful coexistence is little more than a Quixotic plea from Pyongyang to be left alone to develop in a self-directed manner in exchange for giving up a few nuclear weapons that at best, are, to use an Edward Herman term, a “threat of self-defense.” The benefits of peaceful coexistence are all on the North Korean side.

What does the United States get for promising to leave North Korea to develop in its own way? An open door for exports and investments? North Korea’s integration into a US-dominated system of global capitalism? US troops on North Korean soil? North Korea’s incorporation into a US-led military alliance against China? No. What it gets is North Korea giving up a deterrent to attack in exchange for the United States promising not to attack. This is a one-sided deal. No wonder North Korea wants it, and Washington keeps turning it down. David Straub, director of the US State Department’s Korea desk from 2002 to 2004 sums up nicely why peaceful coexistence isn’t on Washington’s Korea agenda. “North Korea’s closed economic and social system means the country has virtually nothing of value to offer the United States.” (12) What the United States wants from North Korea (an open door to investment, exports, ownership and political influence) is the opposite of what North Korea offers (a closed door and a prickly sense of independence—both political and economic). Washington abandoned the policy of peaceful coexistence with the USSR, which was militarily strong enough to make the US a miserable place if the Pentagon ever decided to start a US-Soviet war. So why would it accept peaceful coexistence with a hated closed system that poses a minor threat at best?

Other critics of US foreign policy explain their subject in terms of power. US leaders want to preserve or expand US power (or primacy or hegemony) against such “peer competitors” as China or Russia or such regional powers as Iran. Of course, it’s never said what US leaders (or Chinese or Russian leaders) want power for. To believe these critics, power is what everyone wants, and the quest for it, as an end in itself, is what makes the world go around. But the trick here is to inquire into why power is sought. Washington doesn’t seek to enlarge its power to strong-arm governments around the world into furnishing their citizens with public healthcare, guaranteed employment and free education. On the contrary, it seeks power to do the very opposite. Power serves some end, and in the case of US state power, it serves the end of protecting and enlarging the big business interests of the big business people who run the state of a big business country; it protects profits and establishes the conditions that allow them to grow—both at home and overseas.

It’s curious that the power-is-the-alpha-and-omega-of-world-politics view should hold such a strong sway among critics of US foreign policy, when in the internal affairs of capitalist countries the organizing principle is private business, and the alpha and omega of private business, is profits. Sure, it’s understood that business leaders want power, but not so they can lord it over others, and take pleasure in its trappings, but so they can enlarge their capital. Power is a means to an end.

So why should foreign policy be any different? The moment Gaddafi was toppled by NATO bombs, a stream of NATO foreign ministers traipsed to Benghazi, their countries’ corporate CEOs in tow, to line up new business deals. It was clear the National Transitional Council (NTC), whose key members—one, an exile who had been teaching economics in the United States for years; another, who earned his PhD in 1985 from the University of Pittsburgh under the late Richard Cottam, a former US intelligence official in Iran; and a third, who had been living within hailing distance of CIA headquarters in Langley, Virginia, before being spirited back to Libya– would be a good deal more accommodating of US business interests than Gaddafi had ever been. For all his turning over a new leaf to befriend the West, Gaddafi had irked the US State Department by practicing “resource nationalism” and trying to “Libyanize” the economy, (13) which is to say, turn foreign investment to the advantage of Libyans. His threat in 2009 to re-nationalize Libya’s oil fields, stirred up old fears. (14) Now, the NTC—with its US-friendly principals–promises juicy plums to the countries whose bombs ousted Gaddafi.

The US ambassador to Libya, Gene A. Cretz, channeling the ghost of uber-imperialist, Cecil Rhodes, acknowledged that Libyan oil was “the jewel in the crown” but that there would be broader profit-making opportunities to lay hold of, now that Gaddafi had been bombed from power. Even “in Qaddafi’s time,” he observed, the Libyans “were starting from A to Z in terms of building infrastructure and other things. If we can get American companies here on a fairly big scale, which we will try to do everything we can to do that, then this will redound to improve the situation in the United States with respect to our own jobs.” (15) US Senator John McCain, for his part, noted that “American investors were watching Libya with keen interest and wanted to do business” in Libya as soon as the country was pacified. (16)

The New York Times’ Scott Shane summed up the excitement.

Western security, construction and infrastructure companies that see profit-making opportunities receding in Iraq and Afghanistan have turned their sights on Libya, now free of four decades of dictatorship. Entrepreneurs are abuzz about the business potential of a country with huge needs and the oil to pay for them, plus the competitive advantage of Libyan gratitude toward the United States and its NATO partners.

A week before Colonel Qaddafi’s death on Oct. 20, a delegation from 80 French companies arrived in Tripoli to meet officials of the Transitional National Council, the interim government. Last week, the new British defense minister, Philip Hammond, urged British companies to “pack their suitcases” and head to Tripoli. (17)

Shane’s summing up provides a pretty good account of what the NATO bombing campaign had been all about, with one exception. Western security, construction and infrastructure companies aren’t turning their sights on Libya because it is now free of four decades of dictatorship, but because it is now free of four decades of economic nationalism—an economic nationalism that once privileged Libyans over Western banks, investors and corporations. The country is now open for business…on the West’s terms.

The view that US foreign policy is shaped by considerations related to preserving and enlarging profit-making opportunities for investors, banks and corporations headquartered in the United States is based on two realities.

• The formulation of US foreign policy is dominated by the CEO’s, corporate lawyers and major investors who circulate between Wall Street and Washington.
• The countries that the United States has singled out for regime change, without exception, pursue self-directed economic policies aimed at fostering self-development and therefore deny or limit US investment and export opportunities.

Every rich country, with the exception of Britain, became rich through active state intervention in their economies to create industries, subsidize them and protect them from competition while they grew. The United States, as much as Germany, Japan, and other now rich industrialized countries, followed this path. (18) At one point, the United States had the world’s highest tariff barriers, which it used to shelter its nascent manufacturing industries against competition from established British firms. As protected industries matured under the guiding hand of a dirigiste state, they naturally sought to expand beyond their borders, as the possibilities offered by national markets were exhausted. Now, the policies that served their development so ably in the past, became fetters. Rather than protected markets at home, they needed open markets abroad. Poor countries couldn’t be allowed to emulate the policies that made the rich countries rich, because state-ownership, subsidies and trade barriers would eclipse the further development of the once protected industries of the rich countries. Poor countries would have to open themselves up as fields for exploitation by the banks, investors and corporations of the rich countries that had grown fat on the dirigiste policies some poor countries were now seeking to emulate.

A glance through the US Library of Congress’s country study on Iran reveals a truth that US officials never mention and that US foreign policy critics seem unaware of. Iran is not the kind of place an enterprising US business can hope to make money in. “The public sector dominates the economic scene, and the subordination of the private sector is observed in all industries and commerce.” (19) Worse, “Public-sector investments in transportation…utilities, telecommunications, and other infrastructure have grown over time.” (20) “The government plays a significant role in Iran’s economy, either directly through participation in the production and distribution of goods and services, or indirectly through policy intervention.” (21) Indeed, Iran’s constitution defines the public sector as primary, and “the private sector as the means of furnishing the government’s needs rather than responding to market requirements.” (22) Democratic socialists will be shocked to discover that this is the very same economic model that such New Left socialists as Ralph Miliband defined as emblematic of what a democratic socialism ought to be (which isn’t to say that Iran is a democratic socialist state, only that economically it is very close to what many socialist thinkers have envisaged for Western socialism.) In any event, it will be conceded that any economy that bears even a passing resemblance to that favored by radical democratic socialists is not likely to get a ringing endorsement from the kinds of people who formulate US foreign policy.

Other reasons why Iran’s economic policies are likely to have provoked the animosity of the US State Department: Despite its leaders making noises about going on a privatizing binge, Iran’s public sector has soberly grown rather than shrunk. (23) What’s more, large sectors of Iran’s economy remain off-limits to private ownership. ”Since the Revolution, the government has retained monopoly rights to the extraction, processing, and sales of minerals from large and strategic mines.” (24) Iran’s “agricultural policy is intended to support farmers and encourage production of strategically important crops” (25), not to open doors to US agribusiness. ”After the Revolution, many transportation companies, banks, and insurance companies were nationalized” (26) while price controls and subsidies have been used to make important consumer goods affordable (though many subsidies have been lifted recently.)

Wall Street and the US State Department dislike state-owned enterprises that serve the self-directed development goals of independent foreign countries, because they displace private investment by US capital. They abhor the practice of foreign governments subsidizing and protecting local business enterprises because it makes the task of US firms competing in overseas markets more difficult, and thereby limits the overseas profits of US firms. They revile regulations that protect local populations from pollution, desperation wages and deplorable working conditions, because they cut into profits. Some or all of these practices form significant parts of the economic policies of every country in the cross-hairs of US foreign policy, including Libya under Gaddafi and Iran today.

Washington doesn’t want to bring about a change of regime in Tehran to install a pliant government that will help expand US power. It wants to bring about a change of regime in Tehran that will cancel economic policies aimed at Iran’s self-development and replace them with policies that will open up the country’s resources, markets, labor and land to US banks, corporations and investors. It wants the holy trinity of free-trade, free-enterprise and free-markets at the center of poor countries’ economic policies, not protected trade, not state-owned and subsidized enterprises, and not trade barriers. (But while preaching the holy trinity abroad, the United States reserves the right to deploy subsidies, impede imports, and rely on state-intervention to support key industries at home. Consistency doesn’t matter. Profits do.)

To reach the goal of turning Iran into a country that can disgorge a bonanza of profits to US corporations and investors, Iran must first be denied the capability of mounting an effective defense against military intervention by the United States and its allies. It is for this reason that the United States and its Middle Eastern Doberman, Israel, have embarked upon a program of sabotage, assassinations and threats of aerial bombing aimed at crippling even the possibility of Iran acquiring a nuclear deterrent. The idea that Tehran is bent on lobbing a few nuclear-tipped missiles toward Israel, to complete what the Fuhrer had left undone, is demagogic nonsense, intended to provide a compelling justification for aggression against Iran. Evoking Hitler’s campaign of genocide against the Jews to invest contrived existential threats with gravitas has been a standard operating procedure of Zionist leaders dating to 1948. (27) Iran has no intention of attacking Israel, and would commit suicide if it did, a reality we can be certain has not escaped its leaders’ ken.

All of this to say that in order to understand US foreign policy it’s necessary to examine who rules in the United States, who formulates its foreign policy, and how the policy the rulers formulate intersects with their economic interests. (28) This is an inquiry into class. For if an economic elite dominates foreign policy, we should expect to find that the outcomes of foreign policy favor elite economic interests, and that foreign countries that pursue economic policies that are not agreeable to those interests will be harassed, sabotaged, sanctioned, destabilized, and possibly bombed or invaded, until the policies are changed.

It may be objected that the cost to the United States of military intervention in Iran would surely exceed any economic gain that would accrue to the country as a whole. For liberals, this would count as evidence that US foreign policy makers had once again made an error. For others, it would stand as a challenge to the idea that a war on Iran would be a war for profits.

But the costs of military intervention are what economists call externalities—costs created by a firm, an industry or a class, but borne by others. Hydraulic fracturing—the high-pressure injection of fluids into rock to release fossil fuels—creates costs in water pollution and wear and tear on roads used by trucks and heavy machinery. If these costs are internalized—borne by the oil companies whose activities have created them—then hydraulic fracturing makes no sense economically–its costs exceed its returns. But if the costs are externalized—left to society as a whole to absorb—hydraulic fracturing becomes an attractive way for oil companies to turn a profit. (29)

Here’s the parallel with military intervention. The giant engineering firm Bechtel would absorb virtually none of the costs of a successful war on Iran, but if one happens, Bechtel is likely to reap enormous profits in contracts to rebuild the infrastructure that the US Air Force would raze to the ground. For Bechtel, then, US military intervention in Iran would be highly profitable, even though it might not make sense economically when viewed from the perspective of the United States as a whole. Lockheed-Martin, Boeing, Northrop Grumman, General Dynamics and Raytheon—the top five defense contractors–don’t foot the Pentagon’s massive $700B per annum bill, but large portions of that budget are transferred to them in the form of contracts for military hardware. While bloated military expenditures make no sense from the point of view of the country as a collectivity, major defense contractors reap enormous profits from them.

The problem, then, of arguing that military intervention in Iran would make no sense because the costs would exceed the economic gains that would accrue to the United States as a whole, is failure to recognize that the country is class-divided, and that the gains of war are internalized within the dominant class while the costs are externalized to the bottom 99 percent. Hence, war doesn’t make sense for the bulk of us, but the problem is that decisions about military expenditures, foreign policy and war are in the hands of the top one percent and their loyal servants, who privatize the benefits and socialize the costs. When liberals say US foreign policy makes no sense, they’re being misguided by a set of erroneous assumptions: that the United States has only one class, the middle-class, that it is not class-divided, that everyone within it has the same middle-class interests, and that the state rules in the interests of all.

Like all US wars, the war on Iran of sanctions, sabotage, assassinations and saber-rattling is a class war. It is a war of class in two respects. First, it is waged on behalf of a class of bankers, major investors, and corporate titans, to knock down walls in Iran that deny this elite access to markets and investment opportunities. Second, it is a war carried out on the back of a class of employees, pensioners, unemployed, and armed forces members—the bottom 99 percent–who bear the cost, through their taxes (and in the future their lives.)

The aim is to install local politicians, most of whom have been educated at US universities where they have been instilled with imperialist values, who can, assisted by US advisors, make over Iran into an agricultural, natural resources, low-wage appendage of the US economy in the service of Wall Street and the class of owners and high-level managers who occupy its commanding heights. In short, a war for profits.

1. Adam Blomfield, “Israel won’t rule out attack on Iran,” The Ottawa Citizen, November 7, 2011.
2. Associated Press, July 27, 2009.
3. Blomfield.
4. Benny Morris, “Using Bombs to Stave Off War,” The New York Times, July 18, 2008.
5. Isabel Kershner, “Israeli strike on Iran would be ‘stupid,’ ex-spy chief says”, The New York Times, May 8, 2011.
6. Glenn Kessler, “Did Ahmadinejad really say Israel should be ‘wiped off the map’?” The Washington Post, October 6, 2011.
7. Thom Shanker and Elisabeth Bumiller, “Weighing Pentagon cuts, Panetta faces deep pressures”, The New York Times, November 6, 2011.
8. Bruce Cumings. Korea’s Place in the Sun: A Modern History. W.W. Norton & Company. 2005.
9. Mark Landler, “Iran policy now more in sync with Clinton’s views,” The New York Times, February 17, 2010.
10. Mazda Majidi, “What lies behind US policy toward Iran?” Liberation, June 12, 2008.
11. Tim Beal. Crisis in Korea: America, China and the Risk of War. Pluto Press.2011. p. 71.
12. Kim Hyun, “US ‘Has No Intention to Build Close Ties with N Korea’: Ex-official,” Yonhap News, September 2, 2009.
13. Steven Mufson, “Conflict in Libya: U.S. oil companies sit on sidelines as Gaddafi maintains hold”, The Washington Post, June 10, 2011.
14. Thomas Walkom, “What Harper and co. got from the Libyan war”, The Toronto Star, October 21, 2011.
15. David D. Kirkpatrick, “U.S. reopens its embassy in Libya”, The New York Times, September 22, 2011.
16. Kareem Fahim and Rick Gladstone, “U.S. Senate delegation offers praise and caution to Libya’s new leaders”, The New York Times, September 29, 2011.
17. Scott Shane, “West sees opportunity in postwar Libya for businesses”, The New York Times, October 28, 2011.
18. Erik S. Reinert. How Rich Countries Got Rich and Why Poor Countries Stay Poor. Public Affairs. New York. 2007; Ha-Joon Chang. Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism. Bloomsbury Press. 2008.
19. The Library of Congress. Iran: A Country Study. 2008. p. 143. http://lcweb2.loc.gov/frd/cs/irtoc.html
20. Iran: A Country Study, p. 145.
21. Iran: A Country Study, p. 150.
22. Iran: A Country Study, p. 151.
23. Iran: A Country Study, p. 152.
24. Iran: A Country Study, p. 167.
25. Iran: A Country Study, p. 170.
26. Iran: A Country Study, p. 181.
27. Ilan Pappe. The Ethnic Cleansing of Palestine. Oneworld Publications. 2006.
28. Albert Szymanski. The Capitalist State and the Politics of Class. Winthrop Publishers. 1978.
29. Paul Krugman, “Here comes the sun,” The New York Times, November 6, 2011.

I recognize that in my views and even use of certain phrases that I have been influenced by Michael Parenti, and that needs to be acknowledged here. Of particular influence is Parenti’s latest book, The Face of Imperialism, Paradigm Publishers, 2011 and his earlier Against Empire, City Light Books, 1995.

Social Democracy, Soviet Socialism and the Bottom 99 Percent

By Stephen Gowans

A measure of just how far to the right US electoral politics are is that the country doesn’t have a mainstream social democratic party. This absence prompted Seymour Martin Lipset and Gary Marks to write It Didn’t Happen Here (1), the “it” being a social democratic party that could count on the ongoing support of a sizeable fraction of the working class population. By contrast, Western Europe and Canada have long had such parties, and social democratic parties have formed governments in Britain, France, Germany, Italy, Spain, Greece and Canada as well as in Scandinavia and other places.

Many left-leaning US citizens are envious of countries that have strong social democratic parties, but their envy is based mainly on romantic illusions, not reality. Western Europe and Canada may be represented by mass parties at the Socialist International, but the subtitle of Lipset and Marks’ book, Why Socialism Failed in the United States, is just as applicable to these places as it is to the United States. For socialism—in the sense of a gradual accumulation of reforms secured through parliamentary means eventually leading to a radical transformation of capitalist society–not only failed in the United States, it failed too in the regions of the world that have long had a strong social democratic presence. Even a bourgeois socialism, a project to reform (though not transcend) capitalism, has failed.

This essay explores the reasons for this failure by examining three pressures that shape the agendas of social democratic parties (by which I mean parties that go by the name Socialist, Social Democrat, Labour, NDP, and so on.) These are pressures to:

• Broaden the party’s appeal.
• Avoid going to war with capital.
• Keep the media onside.

These pressures are an unavoidable part of contesting elections within capitalist democracies, and apply as strongly to parties dominated by business interests as they do to parties that claim to represent the interests of the working class, labour, or these days, ‘average’ people or ‘working families’. The behaviour and agenda of any party that is trapped within the skein of capitalist democracy and places great emphasis on electoral success—as social democratic parties do–is necessarily structured and constrained by the capitalist context. As such, while social democratic parties may self-consciously aim to represent the bottom 99 percent of society, they serve–whether intending to or not—the top one percent.

So how is it, then, that egalitarian reforms have been developed in capitalist democracies if not through the efforts of social democratic parties? It’s true that social democrats pose as the champions of these programs, and it’s also true that conservatives are understood to be their enemies, yet conservatives have played a significant role in pioneering them, and social democrats, as much as right-wing parties, have been at the forefront of efforts to weaken and dismantle them. Contrary to the mythology of social democratic parties, the architects of what measures exist in capitalist democracies for economic security and social welfare haven’t been social democrats uniquely or even principally, but often conservatives seeking to calm working class stirrings and secure the allegiance to capitalism of the bottom 99 percent of society against the counter-example (when it existed) of the Soviet Union.

Pressure to Broaden the Party’s Appeal

Social democratic parties are usually made up of core supporters drawn from the bottom 99 percent of society who are committed to an underlying set of principles that they are unwilling to move away from, and an opposing faction, also drawn from the 99 percent, that is ready to compromise on principle to make the party more popular and increase its chances of electoral success.

The latter group is typically made up of the party’s candidates and elected officials, who have a direct personal interest in expanding the party’s base of support to win public office and secure its attendant perquisites. Owing to this interest, they are often willing to sacrifice principle for immediate electoral gain.

On the other hand, supporters of core principles tend to be non-elected members. Their role is to furnish the party with cash and volunteer labour. Without a direct personal interest in sacrificing principle to broaden the party’s appeal, they insist that principle be adhered to, even at the expense of limiting the party’s popularity. To these party members, politics is about changing popular sentiment to match the party’s principles, not changing the party’s principles to match popular sentiment.

Of course, these are only tendencies. Some elected members are uncompromisingly committed to principle, while some grassroots members are prepared to sacrifice principle for electoral gain.

The conflict between the two factions is hardly an equal one. Since social democratic parties exist to select candidates and get them elected, the party’s parliamentary caucus, and its aides and advisors, wield outsize influence. The party leader and key advisers determine the party’s electoral platform, its strategy in opposition, and its agenda in government. The grassroots members of the party have little or no influence over the party’s parliamentary agenda. Except for electing candidates and a leader, they play an indirect and very limited role in setting the party’s direction.

Hence, social democratic parties are dominated by a stratum whose direct personal interests are defined by the electoral successes of the party. Since electoral success depends on the degree of overlap between party principles and popular sentiment—and since it is often easier to change the party’s platform than public opinion– this faction will often find itself ready to compromise on principle as the easiest way to expand the party’s popularity. And since it is this stratum that sets the party’s parliamentary and electoral agenda, it is almost inevitable that founding principles will be sacrificed to electoral expediency.

Avoiding War with Capital

If that weren’t enough, even a social democratic party that comes to power with undiluted reformist ambitions will find that compromise is necessary for political survival. Social democrats believe that it is possible to reform society in egalitarian directions within the context of capitalism. Even democratic socialists, who favour a radical socialist transformation of capitalist society, pledge to bring this about in a gradual, parliamentary fashion. This means working within the political institutions of capitalist society.

But egalitarian reforms are never in the direct interests of capital, although they may be it its indirect, defensive, interests, if its dominant position in society is threatened. Under these circumstances, banks, corporations and major investors—the top one percent—may, either directly, or through the governments they dominate, offer concessions and reforms to the bottom 99 percent as a necessary sop to preserve their place at the top. This only happens, however, in the face of impending revolutionary upheavals, or where an alternative system threatens to illuminate the failings of the capitalist system and undermine its legitimacy.

But absent an inspiring counter-example or threat of insurrectionary disturbance, compromises are unnecessary. And social democratic parties are nothing if not adverse to revolutionary upheavals and alternatives that operate outside a capitalist framework. Consequently, members of the top one percent have no fear that social democratic parties will seek to topple them from their privileged position at the apex of society. On the contrary, social democratic parties are more likely to strive to demonstrate that they can be relied upon to act as trustworthy guardians of the capitalist economy (and therefore of the interests of the one percent who own and control it.) The action of Greece’s Socialist government to protect the investments of lenders at a considerable cost to the Greek working class, and over the class’s fierce resistance, is a case in point.

Meaningful efforts to transfer part of the profits of capital to funds for improving the economic security and social welfare of the bottom 99 percent (that is, efforts to reclaim part of the surplus the 99 percent produce) never get very far before meeting determined resistance. And capital’s ability to combat threats to its profits and property is formidable. Its control over the media and interests in public relations firms allow it to launch public opinion assaults on egalitarian reforms to bleed them of popular support. A social democratic government might back off its reforms, reasoning that its chances of future electoral success are unpromising in the face of a harshly negative media climate.

More significantly, capital may relocate to other, more accommodating jurisdictions, or threaten to do so, thereby touching of or threatening to touch off an economic crisis, in turn destabilizing the rule of any government that challenges it. Corporations may also curtail investments, either as a punitive measure, or because reforms have attenuated returns on investment. In either case, a social democratic party that seeks to undertake reforms within a capitalist framework must bend to the logic of capitalism–and the logic is hardly friendly to egalitarian reforms.

Egalitarian reforms, however, have been achieved over the years in Western capitalist societies, despite these obstacles, and this reality would seem to call my argument into question. Yet the number and nature of the reforms have fallen short of the original ambitions of social democracy, and in recent decades, have been abridged, weakened and sometimes cancelled altogether, often by social democratic governments themselves.

The first social insurance schemes were developed in Germany, not by social democrats, but by Prince Otto von Bismarck, a conservative who understood the value of social insurance in pacifying a restive working class. The British Liberal governments of 1906-1914 followed with their own ambitious schemes of pensions and health and unemployment insurance to calm working class stirrings. (2) In the United States, the idea of social security didn’t come from unions or the Democrats but from the Rockefellers, who were searching for ways to avert labour unrest and avoid unionization. Likewise, collective bargaining wasn’t the brainchild of unions, but of corporate leaders who wanted to reduce the violence and uncertainty of labour relations. (3) Social democracy often claims credit for these gains, but it was conservatives who conceded them to protect the tranquil digestion of the profits, interest and rents of the top one percent from the disturbances of the bottom 99 percent.

Many reforms were introduced after World War II, at a time Western Europe lay in ruins, and was struggling to pick itself up from the devastation of the war. Liberal democracy had lost its sheen, and in the face of economic tribulations and the rising star of the Soviet Union, socialism had gripped the popular imagination. There was a very real possibility that Western Europeans would turn away from capitalism, and the United States, and the new Western European post-war governments, laboured to inoculate Europe against the threat of socialism. Part of the effort involved the introduction of major social welfare reforms, such as the National Health Service in Britain. True, the NHS was introduced by a Labour government, but conservative governments in Western Europe introduced similar programs at the same time—and for the same reasons. (4) It was the need to secure the allegiance of Western Europeans to capitalism against the threat of socialism, not social democratic parliamentary activism, that brought forward important concessions to the majority.

Thus, conservatives seeking to eclipse threats to the stability of capitalist society posed by extra-parliamentary agitation and the counter-example of the Soviet Union have been the principal architects of ambitious schemes of social insurance. Social democrats may have been involved, however not as instigators, but as participants in essentially conservative schemes aimed at safeguarding the top one percent from the potential revolutionary action of the bottom 99 percent. With labour largely quiescent in recent decades and far from revolutionary, and the demise of the Soviet Union (and China’s taking the capitalist road) leaving the world with few living counter-examples to capitalism, capital has been able to revoke reforms it conceded in more restive times. The Occupy Wall Street movement, and anti-austerity agitations in Europe, are early signals of a possible reversal of tide.

The Soviet Counter-Example

It is instructive to consider Soviet social welfare, to understand what capitalist democracies once competed against, and to appreciate its breadth and depth. Although it is certainly unfashionable in capitalist democracies to say so, it is true all the same that the Soviet Union was organized to serve the interests of the mass of its people, and not to enrich an elite of bankers, major investors and corporate titans, as is true in our own societies, and in Russia and other countries of the former Soviet Union today.

Some will object that the USSR was organized to serve the interests of the Communist Party elite, and that it too was divided between the 99 percent and the one percent. To be sure, the Soviet Union was not built along anarchist lines. There was an elite, but the advantages the elite enjoyed were picayune by the standards of capitalist democracies. The elite lived in modest apartments and had incomes relative to the average industrial worker that were no greater than the incomes of physicians in the United States relative to the average US industrial wage. Top Communist Party officials did not own productive property and therefore could not transfer it, and neither could they transfer position or privilege, across generations to their children. Moreover, the very mild level of income disparity in the Soviet Union was mitigated by the reality that many necessities were available free of charge or at highly subsidized rates. (5)

Employment in the USSR was guaranteed—indeed, obligated (an important point to correct one of the cruder misconceptions that socialism amounts to the unemployed collecting welfare cheques.) Work was considered a social duty. Living off of rent, profits, speculation or the black market – social parasitism – was illegal. Education was free through university, with living stipends for post-secondary students. The USSR had a lower teacher to student ratio than the United States. Healthcare was free, and drugs prescribed in the hospital or for chronic illness were also free. The Soviet Union had the greatest number of doctors per capita of any country in the world and had more hospital beds per person than the United States or Britain. That US citizens have to pay for their healthcare was considered extremely barbaric in the Soviet Union, and Soviet citizens “often questioned US tourists quite incredulously on this point.” (6) Soviet workers received an average of three weeks of paid vacation per year. Necessities, such as food, clothing, transportation and housing were subsidized. By law, rent could exceed no more than five percent of a citizen’s income, compared to 25 to 30 percent or more in the United States. Women were granted paid maternity leave as early as 1936. The constitution of 1977 guaranteed that “The state (would help) the family by providing and developing a broad system of childcare…by paying grants on the birth of a child, by providing children’s allowances and benefits for large families.” All Soviet citizens were eligible for generous retirement pensions—men at age 60, women at 55. Concerning women’s rights: “The Soviet Union was the first country to legalize abortions, develop public child care, and bring women into top government jobs. The radical transformation of women’s position was most pronounced in the traditionally Islamic areas, where an intense campaign liberated women from extremely repressive conditions.” (7) The work week was limited to 41 hours and overtime work was prohibited except under special circumstances. Night-shift workers worked only seven hours per day (but were paid for eight), and people who worked at dangerous jobs (coal miners, for example) or jobs that required constant alertness (physicians, for example) worked shorter shifts but received full pay. (8)

To be sure, life could be harder in the Soviet Union compared to what it was for middle- and upper-income citizens of the rich capitalist democracies (but not the poor of these countries nor the millions of Blacks and Hispanics in US ghettoes nor the denizens of the capitalist global south, i.e., the bulk of humanity.) Housing was guaranteed and rents extremely low, but the housing stock was limited. The Nazis had destroyed much of the country’s living accommodations, and the USSR’s emphasis on heavy industry slowed the building of replacement stock. Incomes, too, were lower, but the Soviet Union had started at a particularly low level of economic development, and despite rapid gains, had not caught up to the West at the point of its demise. Still, life was more certain. And on such human development measures as infant mortality, life expectancy, doctors per capita, adult literacy, daily calories per person, and educational attainment, the Soviet Union and other communist countries performed at the same level as richer, industrialized capitalist countries, and better than capitalist countries at the same level of economic development. (9)

But didn’t the Soviet Union come to an end because its publicly-owned and planned economy broke down? Not at all. Excluding the war years, the Soviet economy grew every year from the point socialism was introduced in 1928 until the last Soviet leader, Mikhail Gorbachev, began to dismantle it in the late 1980s. And for most of those years it grew faster than the capitalist economies of North America and Western Europe. (10) Indeed, by the mid 1970s, there was serious concern in Washington that the Soviet economy would soon surpass that of the United States. (11)

The Soviet Union’s demise is more aptly described as a capitulation (some say suicide (12)) rather than an economic collapse. The torrid pace of Soviet economic growth began to slow in the 1970s, for a variety of reasons. An exhaustive examination of all the reasons would require more space than is available here. But there is one reason worth quickly mentioning. The country’s efforts to keep pace militarily with the United States and NATO monopolized research & development, depriving the civilian economy of the fuel it needed to innovate to overtake the US economy. (13) (Complaints may have frequently been made about the quality of Soviet consumer goods, but no one complained about the quality of Soviet military hardware. (14)) If the Soviets failed to surpass capitalism, or worse, fell behind, the commitment of Soviet citizens to socialism would weaken. What’s more, the country’s ability to defend itself would either atrophy, or the country would be called upon to allocate increasingly larger proportions of its budget to defence. Neither option was sustainable.

To address these looming problems, Gorbachev formulated a two-prong solution. First, he would yield to the Americans on a number of foreign policy fronts. Second, he would reduce the role of planning in the economy in favour of enterprise autonomy and markets. The first prong would reduce military tension with the United States and lessen the burden on the Soviet economy of military spending and aid to national liberation movements and socialist allies. The second, it was hoped, would kick the economy into a higher gear. Neither worked. Gorbachev’s capitulations on foreign policy and abandonment of socialist allies emboldened counter-revolutionary forces in Eastern Europe and dispirited Communist parties on the USSR’s western borders. Eastern Europe’s governments fell. The successor governments reoriented their economies to the West, disrupting the Soviet economy, which had been tightly integrated with them. At the same time, the abrupt transition to enterprise autonomy and markets sent the Soviet economy into a tail-spin. GDP fell sharply—not because the socialist economy had broken down, but because it was being torn apart. Gorbachev’s conciliation with US foreign policy and steps toward market socialism transformed a manageable difficulty into a catastrophe. As one wag put it, Stalin found the Soviet Union a wreck and by building socialism left it a superpower. Gorbachev found it a superpower and by abandoning socialism left it a wreck.

The point, however, isn’t to explore the reasons for the Soviet Union’s demise, but to show that while it existed, the USSR provided a successful counter-example to capitalism. The ideological struggle of the capitalist democracies against the Soviet Union entailed the provision of robust social welfare programs and the translation of productivity gains into a monotonically rising standard of living. Once the ideological struggle came to an end with the closing of the Cold War, it was no longer necessary to impart these advantages to the working classes of North America, Western Europe and Japan. Despite rising productivity, growth in household incomes was capped, and social welfare measures were systematically scaled back.

Social democracy did nothing to reverse or arrest these trends. It was irrelevant. When strong social welfare measures and rising incomes were needed by the top one percent to undercut working class restlessness and the Soviet Union’s counter-example, these advantages were conferred on the bottom 99 percent by both social democratic and conservative governments. When these sops were no longer needed, both conservative and social democratic governments enacted measures to take them back.

Keeping the Media Onside

Capitalist domination of the mass media also acts to pressure social democratic parties to move toward the right. This happens because:

• The mass media define the legitimate range of policy options, and public opinion settles within it.
• Ambitious social democratic leaders shift the party’s agenda to the right to intersect with mass media-shaped public opinion.
• Party leaders keep the party’s agenda within the confines of the legitimate range of policy options to avoid negative, or no, media coverage during elections.

Since capitalist forces would use the high-profile and visible platform of their mass media to vilify and discredit any party that openly espoused socialism or strongly promoted uncompromisingly progressive policies, social democratic parties willingly accept the capitalist straitjacket, embracing middle-of-the-road, pro-capitalist policies, while shunting their vestigial socialist ambitions to the side or abandoning them altogether. They planted themselves firmly on the left boundary of the possible, the possible being defined by conservative forces.

Conclusion

When social democratic parties espoused socialism as an objective, even if a very distant one, the socialism they espoused was to be achieved with the permission of capital on capital’s terms–an obvious impossibility. It is perhaps in recognizing this impossibility that most social democratic parties long ago abandoned socialism, if not in their formal programs, then certainly in their deeds. That social democratic parties should have shifted from democratic socialist ambitions to the acceptance of capitalism and the championing of reforms within it, and then finally to the dismantling of the reforms, is an inevitable outcome of the pressures cited above.

But the outcome is ultimately traceable to what history surely reveals to be a bankrupt strategy: trying to arrive at socialism, or at least, at a set of robust measures congenial to the interests of the bottom 99 percent, within the hostile framework of a system that is dominated by the top one percent. The best that has been accomplished, and its accomplishment cannot be attributed to social democratic parliamentary activism, is a set of revocable reforms that were conceded under the threat, even if unlikely, of revolution and in response to capitalism’s need to compete ideologically with the Soviet Union. These reforms are today being revoked, by conservative and social democratic governments alike. The reality is that social democracy, which had set out to reform capitalism on behalf of the bottom 99 percent, was reformed by it, and acts now to keep the top one percent happy in return for every now and then championing mild ameliorative measures that conservative forces would concede anyway under pressure.

There are three lessons to be drawn from social democracy’s failure.

• Measures of economic security and social welfare within capitalism come not from social democracy but from militant, extra-parliamentary activity which threatens business’s tranquil digestion of profits.
• These measures—granted by conservative forces, not taken by the bottom 99 percent–remain revocable within capitalism, and are munificent as the degree of working class stirrings and presence of counter-examples allow.
• In absolute terms, the Soviet system of public-ownership and economic planning proved to be as successful and often more successful than the capitalism of the richest countries in providing employment and secure access to health care, education, housing and child care and was more successful relative to its level of economic development.

What social democrats claimed to achieve (but didn’t), Soviet socialism did achieve. And what Soviet socialism did achieve was lost the moment the last Soviet leader steered his country along the path of social democracy.

1. Seymour Martin Lipset and Gary Marks. It Didn’t Happen Here: Why Socialism Failed in the United States. W.W. Norton & Company. 2000.

2. Eric Hobsbawm. The Age of Empire: 1875-1914. Abacus. 1987. P 103.

3. G. William Domhoff, Who Rules America? Power & Politics. Fourth Edition. McGraw Hill. 2002. pp 164-169

4. Albert Szymanski. The Capitalist State and the Politics of Class. Winthrop Publishers, Inc. 1978. p .268

5. David Kotz and Fred Weir. Revolution from Above: The Demise of the Soviet System. Routledge, 1997, pp. 26-28

6. Howard J. Sherman. The Soviet Economy. Little, Brown and Company, 1969.

7. Albert Szymanski. Human Rights in the Soviet Union, Zed Books Ltd, London, 1984.

8. I’ve drawn from numerous sources on Soviet social welfare and employment policy. Albert Szymanski. Is the Red Flag Flying? The Political Economy of the Soviet Union Today, Zed Press, London, 1979; Michael Parenti. Blackshirts & Reds: Rational Fascism and the Overthrow of Communism. City Light Books, 1997; Roger Keeran and Thomas Kenny. Socialism Betrayed: Behind the Collapse of the Soviet Union, International Publishers, New York, 2004; David Kotz and Fred Weir. Revolution from Above: The Demise of the Soviet System. Routledge, 1997.

9. Shirley Cereseto, “Socialism, Capitalism and Inequality,” The Insurgent Sociologist. Vol. XI, No. 2, Spring 1982.

10. David M. Kotz. “The Demise of the Soviet Union and the International Socialist Movement Today”. Paper written for the International Symposium on the 20th Anniversary of the Former Soviet Union and its Impact, Beijing, April 23, 2011.11.

11. David M. Kotz. “Socialism and Capitalism: Are They Qualitatively Different Socioeconomic Systems?” Paper written for the symposium “Socialism after Socialism: Economic Problems,” sponsored by the Institute of Economics of the Russian Academy of Sciences, Moscow, December 6-8, 2006.

12.”Socialism,” Castro said, “did not die from natural causes; it was a suicide.” Roger Keeran and Thomas Kenny. Socialism Betrayed: Behind the Collapse of the Soviet Union, International Publishers, New York, 2004. P 222.

13. On the role of R&D in the slowdown of the Soviet economy see: Robert C. Allen. Farm to Factory: A Reinterpretation of the Soviet Industrial Revolution, Princeton University Press, 2003; Peter Schweizer. Victory: The Reagan Administration’s Secret Strategy that Hastened the Collapse of the Soviet Union, The Atlantic Monthly Press, New York, 1994; and Howard J. Sherman. The Soviet Economy. Little, Brown and Company, 1969.

14. David M. Kotz. “What Economic Structure for Socialism?” Paper written for the Fourth International Conference “Karl Marx and the Challenges of the XXI Century, Havana, May 5-8, 2008.

Gaddafi’s Oppressions

By Stephen Gowans

My local newspaper informed me this morning that with the killing of Muammar Gaddafi the “Libyan people can finally turn the page on 42 years of vicious oppression.”

The oppression began with Gaddafi liberating Libya from the tyranny of the puppet ruler King Idris I, whose flag has become the banner of the rebels.

It continued with Gaddafi’s expulsion of foreign military bases and his nationalization of the country’s oil.

Further oppression was heaped upon Libyans when under Gaddafi’s rule living standards rose to surpass those of every other country in Africa.

Certainly, Gaddafi’s fight to suppress the Libyan Islamic Fighting Group—whose members fought the Americans in Afghanistan and Iraq and struggled alongside Osama bin Laden against the Soviets in Afghanistan—added to the oppression.

The leader of the LIFG, Abdel Hakim Belhaj, once jailed by the Americans for terrorism, is now the military ruler of Tripoli.

Gaddafi’s insistence over the objections of US oil company executives and State Department officials that the Libyan economy be “Libyanized” (that foreign investment be turned to the advantage of Libyans) cranked up the oppression a notch or two further.

And Gaddafi’s generous aid to national liberation movements and to sub-Saharan African countries expanded his oppressions worldwide.

Which pro-democracy forces fought back against these oppressions?

• Qatar, an absolute monarchy, which sent guns and ammunition to Islamist rebels.

• Monarchists, still incensed at the overthrow of their king.

• Islamists, who for years had struggled to bring an Islamist regime to power in Tripoli.

• CIA-connected dissidents, who hold key positions in the National Transitional Council, and promise Western oil companies first dibs on oil concessions.

• Nato, whose warplanes and special operation forces proved decisive in toppling Gaddafi.

Over the last few weeks, Nato warplanes occupied themselves with reducing the town of Sirte to rubble – in the name of protecting civilians. It turns out that it’s all right for Nato to bomb civilians, but not for the leaders of independent governments to put down insurgencies.

While these forces battled Gaddafi’s oppressions, US-provisioned Saudi tanks rolled into Bahrain to crush a popular uprising, the US-backed ruler of Yemen, Ali Abdullah Saleh, turned his guns on his own people, and US-approved Mubarakism continued in Egypt, under Mubarak’s henchmen.

These events—all involving US allies–have been little remarked upon. More importantly, none have been met with military intervention or indictments by the International Criminal Court, these attentions being reserved uniquely for Gaddafi.

It’s true that the Libyan people can finally turn the page on 42 years, but of independence, not of vicious oppression.

Nato military bases, an economy subservient to Western oil companies, and the oppressive yoke of US imperialism, await them.

US Ambassador Echoes Cecil Rhodes

By Stephen Gowans

When in 1916 Bolshevik leader Vladimir Lenin expounded what historian V.G. Kiernan would later call virtually the only serious theory of imperialism, despite its shortcomings (1), Lenin cited Cecil Rhodes as among the “leading British bourgeois politicians (who) fully appreciated the connection between what might be called the purely economic and the political-social roots of modern imperialism.” (2)

Rhodes, founder of the diamond company De Beers and of the eponymous Rhodesia, had made the following remarks, which Lenin quoted at length in his Imperialism: The Highest Stage of Capitalism.

I was in the East End of London yesterday and attended a meeting of the unemployed. I listened to the wild speeches, which were just a cry for ‘bread,’ ‘bread,’ ‘bread,’ and on my way home I pondered over the scene and I became more than ever convinced of the importance of imperialism … My cherished idea is a solution for the social problem, i.e., in order to save the 40,000,000 inhabitants of the United Kingdom from a bloody civil war, we colonial statesmen must acquire new lands to settle the surplus population, to provide new markets for the goods produced by them in factories and mines. The Empire, as I have always said, is a bread and butter question. If you want to avoid civil war, you must become imperialists. (3)

Skip ahead 95 years. Here’s US ambassador to Libya, Gene A. Cretz:

We know that oil is the jewel in the crown of Libyan natural resources, but even in Qaddafi’s time they were starting from A to Z in terms of building infrastructure and other things. If we can get American companies here on a fairly big scale, which we will try to do everything we can to do that, then this will redound to improve the situation in the United States with respect to our own jobs. (4)

New York Times’ reporter David D. Kirkpatrick noted that “Libya’s provisional government has already said it is eager to welcome Western businesses (and)…would even give its Western backers some ‘priority’ in access to Libyan business.” (5)

A bread and butter question. Also a profit-making one.

What Ahmadinejad really said at the UN

Mahmoud Ahmadinejad’s address to the 66th UN General Assembly meeting provided the Iranian president with the usual occasion to make the usual points and the Western media the usual occasion to misrepresent them.

Wall Street Journal reporter Jay Solomon wrote that Ahmadinejad “sought to stoke controversy by again questioning the Holocaust,” (6) reminding readers that Ahmadinejad had once called for Israel to be “wiped off the map”, a distortion that will live on in history through its mere retelling. (What the Iranian president really said was that Israel would dissolve as the Soviet Union had.)

I read the transcript of Ahmadinejad’s address, but found no questioning of the Nazi-engineered holocaust.

Here are his remarks on Zionism and the Holocaust.

They view Zionism as a sacred notion and ideology. Any question of its very foundation and history is condemned by them as an unforgivable sin.

Who imposed, through deceits and hypocrisy, the Zionism and over sixty years of war, homelessness, terror and mass murder on the Palestinian people and countries of the region?

If some European countries still use the Holocaust, after six decades, as the excuse to pay fine or ransom to the Zionists, should it not be an obligation upon the slave masters or colonial powers to pay reparations to the affected nations?

By using their imperialistic media network which is under the influence of colonialism they threaten anyone who questions the Holocaust and the September 11 events with sanctions and military action. (7)

It would have been more accurate for Solomon to have written that Ahmadinejad sought to stoke controversy by again questioning the legitimacy of Zionism and the manipulative use of the Nazi-perpetrated holocaust to justify it.

But these themes are unmentionable in the Western corporate media.

It is common practice to capitalize the Nazi-engineered effort to exterminate the Jews as the ‘Holocaust’, as if there had never been any other holocaust—or any at rate, any other worth mentioning. Even the transcript of Ahmadinjad’s address refers to ‘the Holocaust’ rather than ‘a holocaust.’

The Justice Process

It seems that the only argument US president Barack Obama could muster for why Palestinian Authority president Mahmoud Abbas shouldn’t seek recognition of a Palestinian state at the UN is that the ‘peace process’ would be derailed.

Let’s lay aside the obvious difficulty of Barak the Bomber caring about peace, and that the ‘peace process’ has been off the rails for some time. His objection missed the point. Recognition of a Palestinian state isn’t a question of the peace process but of the justice process, and hardly a very satisfying one at that. What justice is there in Palestinians settling for one fifth of their country? Which is what, in any practical sense, UN recognition of the Palestinian territories as a state would amount to.

But it’s better than the status quo and a starting point.

For Zionists, the peace process is a little more appealing, but is the opposite of the justice process. It means getting Palestinians to settle for even less than one-fifth of their country, and to acknowledge the theft of it as legitimate.

An aside: Over 30 countries do not recognize Israel, among them Cuba, Venezuela, North Korea, Iran and Syria.

Rational Ignoramuses?

Do those who promote what Keynes called the fallacy of thrift (or fallacy of austerity, to give it a contemporary spin) really believe what they preach: that cutting pensions, laying off public servants, raising taxes on the poor, and closing government programs, is the way to avert a deeper economic crisis for the bulk of us?

Do they even care about the bulk of us?

Or is austerity simply a way of bailing out bankers and bondholders by bleeding the rest of us dry?

British prime minister David Cameron, on a trip to Canada to compare notes with fellow deficit-hawk Stephen Harper, the Canadian PM, remarked that “Highly indebted households and governments simply cannot spend their way out of a debt crisis. The more they spend, the more debts will rise and the fundamental problem will grow.” (8)

This was reported with tacit nods of approval in Canada’s corporate press, as if Cameron’s utterings were incontrovertible, rather than the ravings of an economic illiterate (in the view of economists), or the words of a political con artist (in the view of class struggle literates.)

Highly indebted governments simply cannot cut their way out of an economic crisis. The more they cut, the more aggregate demand weakens and the worse it gets. Greece’s continued slide into economic ruin underscores the point. The United States’ inability to drag itself out of the depths of the Great Depression, until arms orders brought the economy back to life, strikes an historical cautionary note.

But recessions are not without benefits for corporate plutocrats. It’s easier to cut wages, salaries and benefits during downturns, and to enjoy bigger profits as a result. Small competitors can be driven out of business. Unions can be weakened. And governments have an excuse to slash social programs that have pushed the balance of power a little too far in labor’s direction. Indeed, all manner of sacrifices can be extracted from most of us if we’re persuaded that debt is the cause of the problem and that belt-tightening is the physic that will cure it.

My bet is that Cameron and his fellow water carriers for moneyed interests are no dummies — but they’re hoping the rest of us are.

Knowing Who Your Friends Are
Here is the widely reviled (by Western governments) Robert Mugabe, president of Zimbabwe, at the 66th session of the UN General Assembly.

After over twenty thousand NATO bombing sorties that targeted Libyan towns, including Tripoli, there is now unbelievable and most disgraceful scramble by some NATO countries for Libyan oil, indicating thereby that the real motive for their aggression against Libya was to control and own its abundant fuel resources. What a shame!

Yesterday, it was Iraq and Bush and Blair were the liars and aggressors as they made unfounded allegations of possessions of weapons of mass destruction. This time it is the NATO countries the liars and aggressors as they make similarly unfounded allegations of destruction of civilian lives by Gaddafi.

We in Africa are also duly concerned about the activities of the International Criminal Court (ICC) which seems to exist only for alleged offenders of the developing world, the majority of them Africans. The leaders of the powerful Western States guilty of international crime, like Bush and Blair, are routinely given the blind eye. Such selective justice has eroded the credibility of the ICC on the African continent.

My country fully supports the right of the gallant people of Palestine to statehood and membership of this U.N. Organisation. The U.N. must become credible by welcoming into its bosom all those whose right to attain sovereign independence and freedom from occupation and colonialism is legitimate. (9)

It’s clear why he’s reviled by imperialists, but also by leftists?

If the Movement for Democratic Change’s Morgan Tsvangirai, favorite of the West, ever becomes president, expect a very different kind of address at future General Assembly meetings.

1. V.G. Kiernan, Marxism and Imperialism, St. Martin’s Press, New York, 1974.

2. V. I. Lenin, Imperialism: The Highest Stage of Capitalism, International Publishers, New York. 1939. p 78.

3. Ibid. p 79.

4. David D. Kirkpatrick, “U.S. reopens its embassy in Libya”, The New York Times, September 22, 2011.

5. Ibid.

6. Jay Solomon, “Iran adds Palestine statehood wrinkle”, The Wall Street Journal, September 23, 2011.

7. http://www.president.ir/en/?ArtID=30573

8. Campbell Clark, “Cameron, Harper preach restraint in teeth of global ‘debt crisis’”, The Globe and Mail, September 22, 2011

9. http://nehandaradio.com/2011/09/24/full-text-of-robert-mugabe-speech-at-un-assembly/