US Ranks 9th to Last in Social Spending

April 19,2011

BUSINESS INSIDER In the U.S. debate on social spending and entitlements, it’s important to remember that we spend more than some and less than most.

In fact, we’re ninth from the bottom of the OECD‘s 34 listed countries in social spending as a share of the economy. 

Ireland is above us and Australia below.

Following is a list of the 14 greatest social spenders included in the OECD’s rankings.

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Icelanders Reject Debt Repayment Plan

WALL STREET JOURNAL– For the second time, Icelanders voted down a deal to repay Britain and the Netherlands billions of euros lost in the island nation’s 2008 financial collapse—at once a bold popular rejection of the notion that taxpayers must bear the burden for bankers’ woes and a risky outcome that will complicate Iceland’s efforts to rejoin global markets.

The money in question, about €4 billion ($5.8 billion), was placed by British and Dutch depositors in an Icelandic Internet bank called Icesave, and then lost when Icesave’s operator, Landsbanki Islands, collapsed along with the rest of Iceland’s big banks in October 2008.

Nearly 60% of 175,000 voters rejected a plan to compensate the British and the Dutch governments, who had stepped in to pay their own Icesave depositors when Iceland’s deposit-insurance scheme ran out of money.

The deal was the result of months of negotiation that saw Iceland win far better terms for the repayment. An earlier agreement was demolished—93% of voters said no—in a another referendum, in March 2010.

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© 2011 WALL STREET JOURNAL

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Class Struggle Exists Inside Every Major Institution

COMMONDREAMS – When we study Marx in my graduate social theory course, it never fails that at least one student will say (approximately), “Class struggle didn’t escalate in the way Marx expected. In modern capitalist societies class struggle has disappeared. So isn’t it clear that Marx was wrong and his ideas are of little value today?”

I respond by challenging the premise that class struggle has disappeared. On the contrary, I say that class struggle is going on all the time in every major institution of society. One just has to learn how to recognize it.

One needn’t embrace the labor theory of value to understand that employers try to increase profits by keeping wages down and getting as much work as possible out of their employees. As the saying goes, every successful capitalist knows what a Marxist knows; they just apply the knowledge differently.

Workers’ desire for better pay and benefits, safe working conditions, and control over their own time puts them at odds with employers. Class struggle in this sense hasn’t gone away. In fact, it’s inherent in the relationship between capitalist employer and employee. What varies is how aggressively and overtly each side fights for its interests.

Where else does class struggle occur? We can find class struggle wherever three things are at stake: the balance of power between capitalists and workers, the legitimacy of capitalism, and profits.

The most important arena outside the workplace is government, because it’s here that the rules of the game are made, interpreted, and enforced. When we look at how capitalists try to use government to protect and advance their interests — and at how other groups resist — we are looking at class struggle.

Capitalists want laws that weaken and cheapen labor. This means laws that make it harder for workers to organize unions; laws that make it easier to export production to other countries; laws that make it easier to import workers from other countries; laws and fiscal policies that keep unemployment high, so that workers will feel lucky just to have jobs, even with low pay and poor benefits.

Capitalists want tax codes that allow them to pay as little tax as possible; laws that allow them to externalize the costs of production (e.g., the health damage caused by pollution); laws that allow them to swallow competitors and grow huge and more powerful; and laws that allow them to use their wealth to dominate the political process. Workers, when guided by their economic interests, generally want the opposite.

I should note that by “workers,” I mean everyone who earns a wage or a salary and does not derive wealth from controlling the labor of others. By this definition, most of us are workers, though some are more privileged than others. This definition also implies that whenever we resist the creation and enforcement of laws that give capitalists more power to exploit people and the environment, we are engaged in class struggle, whether we call it that or not.

There are many other things capitalists want from government. They want public subsidy of the infrastructure on which profitability depends; they want wealth transferred to them via military spending; they want militarily-enforced access to foreign markets, raw materials, and labor; and they want suppression of dissent when it becomes economically disruptive. So we can include popular resistance to corporate welfare, military spending, imperialist wars, and government authoritarianism as further instances of class struggle.

Class struggle goes on in other realms. In goes on in K-12 education, for example, when business tries to influence what students are taught about everything from nutrition to the virtues of free enterprise; when U.S. labor history is excluded from the required curriculum; and when teachers’ unions are blamed for problems of student achievement that are in fact consequences of the maldistribution of income and wealth in U.S. society.

It goes on in higher education when corporations lavish funds on commercially viable research; when capitalist-backed pundits attack professors for teaching students to think critically about capitalism; and when they give money in exchange for putting their names on buildings and schools. Class struggle also goes on in higher education when pro-capitalist business schools are exempted from criticism for being ideological and free-market economists are lauded as objective scientists.

In media discourse, class struggle goes on when we’re told that the criminal behavior of capitalist firms is a bad-apple problem rather than a rotten-barrel problem. It goes on when we’re told that the economy is improving when wages are stagnant, unemployment is high, and jobs continue to be moved overseas. It goes on when we’re told that U.S. wars and occupations are motivated by humanitarian rather than economic and geopolitical concerns.

Class struggle goes on in the cultural realm when books, films, and songs vaunt the myth that economic inequality is a result of natural differences in talent and motivation. It goes on when books, films, and songs celebrate militarism and violence. It also goes on when writers, filmmakers, songwriters, and other artists challenge these myths and celebrations.

It goes on, too, in the realm of religion. When economic exploitation is justified as divinely ordained, when the oppressed are appeased by promises of justice in an afterlife, and when human capacities for rational thought are stunted by superstition, capitalism is reinforced. Class struggle is also evident when religious teachings are used, antithetically to capitalism, to affirm values of equality, compassion, and cooperation.

I began with the claim that Marx’s contemporary relevance becomes clear once one learns to see the pervasiveness of class struggle. But apart from courses in social theory, reading Marx is optional. In the real world, the important thing is learning to see the myriad ways that capitalists try to advance their interests at the expense of everyone else. This doesn’t mean that everything in social life can be reduced to class struggle, but that everything in social life should be examined to see if and how it involves a playing-out of class interests.

Click to continue reading on class struggle.

Article by Michael Schwalbe, a professor of sociology at North Carolina State University. He is the author of: Rigging the Game: How Inequality Is Reproduced in Everyday Life (Oxford, 2008). He can be reached at [email protected].

© Copyright Common Dreams, 2011

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13% of All U.S. Homes are Vacant

CNN– High residential vacancies are killing many housing markets, as foreclosed homes sit on the market and depress sale prices and property values.

And it’s only getting worse: The national vacancy rate crept up to just over 13% according to last week’s decennial census report. That’s up from 12.1% in 2007.

“More vacant homes equal more downward pressure on home prices,” said Brad Hunter, chief economist for Metrostudy, a real estate information provider.

Maine had the highest proportion of empty housing stock, at 22.8%. Other states with gluts of empty houses included Vermont (20.5%), Florida (17.5%), Arizona (16.3%) and Alaska (15.9%).

The way the census calculates the vacancy rates, however, is problematic. It includes properties such as ski lodges, beach houses and pied-à-terres that many real estate statisticians would not.

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© Copyright CNN, 2011

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Media Roots TV – Interview with Chris Hedges

MEDIA ROOTS- Media Roots sits down for a short conversation with Chris Hedges, an American journalist, author, and war correspondent. Hedges gives a sobering take on American culture, relaying a grim yet powerful perspective on the current political and societal state of the US.

 

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