How the Billionaires Broke the System
by George Monbiot: journalist, author, academic and environmental and political activist, United Kingdom.
There are two ways of cutting a deficit: raising taxes or reducing spending. Raising taxes means taking money from the rich. Cutting spending means taking money from the poor. Not in all cases of course: some taxation is regressive; some state spending takes money from ordinary citizens and gives it to banks, arms companies, oil barons and farmers. But in most cases the state transfers wealth from rich to poor, while tax cuts shift it from poor to rich.
So the rich, in a nominal democracy, have a struggle on their hands. Somehow they must persuade the other 99% to vote against their own interests: to shrink the state, supporting spending cuts rather than tax rises. In the US they appear to be succeeding.
Partly as a result of the Bush tax cuts of 2001, 2003 and 2005 (shamefully extended by Barack Obama), taxation of the wealthy, in Obama’s words, “is at its lowest level in half a century”(1). The consequence of such regressive policies is a level of inequality unknown in other developed nations. As the Nobel laureate Joseph Stiglitz points out, in the past 10 years the income of the top 1% has risen by 18%, while that of blue collar male workers has fallen by 12%(2).
The deal being thrashed out in Congress as this article goes to press seeks only to cut state spending. As the former Republican senator Alan Simpson says, “the little guy is going to be cremated.”(3) That, in turn, will mean further economic decline, which means a bigger deficit(4). It’s insane. But how did it happen?
The immediate reason is that Republican members of Congress supported by the Tea Party movement won’t budge. But this explains nothing. The Tea Party movement mostly consists of people who have been harmed by tax cuts for the rich and spending cuts for the poor and middle. Why would they mobilise against their own welfare? You can understand what is happening in Washington only if you remember what everyone seems to have forgotten: how this movement began.
On Sunday the Observer claimed that “the Tea Party rose out of anger over the scale of federal spending, and in particular in bailing out the banks”(5). This is what its members claim. It’s nonsense.
The movement started with Rick Santelli’s call on CNBC for a tea party of city traders to dump securities in Lake Michigan, in protest at Obama’s plan to “subsidise the losers”(6). In other words, it was a demand for a financiers’ mobilisation against the bail-out of their victims: people losing their homes. This is the opposite of the Observer’s story. On the same day, a group called Americans for Prosperity (AFP) set up a Tea Party Facebook page and started organising Tea Party events(7). The movement, whose programme is still lavishly supported by AFP, took off from there.
So who or what is Americans for Prosperity? It was founded and is funded by Charles and David Koch(8). They run what they call “the biggest company you’ve never heard of”(9), and between them they are worth $43 billion(10).
Koch Industries is a massive oil, gas, minerals, timber and chemicals company. Over the past 15 years the brothers have poured at least $85m into lobby groups arguing for lower taxes for the rich and weaker regulations for industry(11). The groups and politicians the Kochs fund also lobby to destroy collective bargaining, to stop laws reducing carbon emissions, to stymie healthcare reform and to hobble attempts to control the banks. During the 2010 election cycle, Americans for Prosperity spent $45 million supporting its favoured candidates(12).
But the Kochs’ greatest political triumph is the creation of the Tea Party movement. Taki Oldham’s film AstroTurf Wars shows Tea Party organisers from all over the Union reporting back to David Koch at their 2009 Defending the Dream summit, explaining the events and protests they’ve started with AFP help. “Five years ago,” he tells them, “my brother Charles and I provided the funds to start Americans for Prosperity. It’s beyond my wildest dreams how AFP has grown into this enormous organisation.”(13)
AFP mobilised the anger of people who found their conditions of life declining, and channelled it into a campaign to make them worse. Tea Party campaigners appear to be unaware of the origins of their own movement. Like the guard in Geoffrey Household’s novel Rogue Male who has been conned into working for the enemy, they take to the streets to demand less tax for billionaires and worse health, education and social insurance for themselves.
Are they stupid? No. They have been systematically misled by another instrument of corporate power: the media. The Tea Party movement has been relentlessly promoted by Fox News, which belongs to a more familiar billionaire. Like the Kochs, Rupert Murdoch aims to misrepresent the democratic choices we face, in order to persuade us to vote against our own interests and in favour of his.
What’s taking place in Congress right now is a kind of political coup. A handful of billionaires has shoved a spanner into the legislative process. Through the candidates they’ve bought and the movement that supports them, they are now breaking and reshaping the system to serve their interests. We knew this once, but now we’ve forgotten. What hope do we have of resisting a force we won’t even see?
References:
- https://www.whitehouse.gov/the-press-office/2011/04/13/remarks-president-fiscal-policy
- https://www.vanityfair.com/society/features/2011/05/top-one-percent-201105
- https://www.guardian.co.uk/world/2011/jul/31/us-debt-crisis-washington-poverty
- https://www.nytimes.com/2011/08/01/opinion/the-president-surrenders-on-debt-ceiling.html
- https://www.guardian.co.uk/world/2011/jul/31/us-debt-congress-tea-party
- https://www.cnbc.com/id/29283701/Rick_Santelli_s_Shout_Heard_Round_the_World
- https://astroturfwars.org/
- https://www.newyorker.com/reporting/2010/08/30/100830fa_fact_mayer?currentPage=all
- https://www.portfolio.com/executives/features/2008/10/15/Profile-of-Billionaire-David-Koch/index3.html
- https://www.forbes.com/wealth/forbes-400
- Tony Carrk, April 2011. The Koch Brothers: What You Need to Know About the Financiers of the Radical Right. Center for American Progress Action Fund. https://www.americanprogressaction.org/issues/2011/04/pdf/koch_brothers.pdf
- As above.
- https://astroturfwars.org/
please google builderburg group see what you think.
know one talks about them,how come?
be happy
knighter
In case people are Googling, Knighter means ‘Bilderberg Group’.
https://en.wikipedia.org/wiki/Bilderberg_Group
If people are serious about studying or finding out more about the Global Elite that control the world governments (Even Australian) go to http://www.infowars.com and subscribe to the podcast.
Wonderful, more Monbiot, how many of his articles have you published this year Craig, or how many have you published since you took the job of editor, too many to count eh! What’s the ratio of George Monbiot articles in relation to Geoff Lawton articles, 50-1 maybe?
What does this have to do with permaculture at all?
Pneal:
Corporate funding of anti-green lobbyists/policies/movements/agendas etc., should not interest permaculturists?
If permaculturists refuse to observe, discuss and take action against the machinations occuring in the halls of political and corporate power, permaculture will ultimately mean virtually nothing to the majority of the world’s populations.
Agreed, and very well stated, Craig. Thanks for the down-to-earth Mollison quote. In our local region I find that many of the most active people for local food sovereignty just can’t bear to hear about the global macros. I empathize with their feeling that they so wish we could all just work & progress on the level playing field of natural systems. The Mollison quote will bring a smile. Your choice of articles has included many that were the best news of eventful days & I’ve taken heart & passed them on.
Thanks Edith.
Pneal – you might want to read these:
https://www.permaculturenews.org/2008/10/02/can-permaculture-save-the-world/
https://www.permaculturenews.org/2009/07/13/the-roots-of-change-in-ourselves-or-government-and-industry/
Harry – I put Geoff’s articles up as soon as he sends them. You can feel free to press him to write more if you like. He’s pretty busy though.
Rather than spend lots of time making unconstructive comments – how about using that time to write articles yourself? Your anti-George missives are truly getting boring.
Which nationwide political movement in America doesn’t get massive corporate funding? Obama got plenty from AIG, and he rewarded them with a large lump of the taxpayers money even though they were the idiots that contributed most to the crisis. Also, the author said: “In other words, it was a demand for a financiers’ mobilisation against the bail-out of their victims: people losing their homes.” But the bailout wasn’t for the forclosed houses, everybody still lost their houses, you would know that if you drove down any street in America and looked at the signs, but with the bailout AIG and other banks kept their doors open and gave their executives raises. That is the real reason why people in the Tea Party are ticked off, no matter who is funding them.
https://abcnews.go.com/Politics/story?id=7110145&page=1
In the words of Jimmy Lennon Junior, “Let’s get ready to RAMBLE!”. OK so usually Jimmy says rumble, but I am going to ramble.
It is another remarkable design decision by the editor right here posting this latest Monbiot.
“Comfort the afflicted, afflict the comfortable.”
George Monbiot
Some motto that! The second part is not very permaculture is it?
Oh man but the first part.
Comfort to the biodiversity (including people) of Andhra Pradesh in southern India where the chief of the Atomic Energy Commission says there is one of the largest reserves of uranium in the world.
Comfort to the biodiversity of the Selous game (can people really still refer to Nature as game?) reserve in Tanzania. Oh, the UN has a big hand in that one as ever. Yes the same UN which awarded George Monbiot the Global 500 Award in 2005. Whatever next, a highway through the Serengeti? Oh wait, that’s right, they are working on that already.
Comfort to the people of Japan, where recently government officials literally refused to take the piss from the Fukushima locals.
Promoting nuclear power brings a whole lot of comfort doesn’t it?
My guess is in this article George Monbiot is attempting to “afflict the comfortable”. Ooooooh, watch out you comfortable ones, here comes George bearing his brazen nose!
How good of you to mention the Bilderberg group. It is one of my favorite topics. I will not bore you with the information I have harvested over the years about that organization. However, have you heard of Alfred Milner (a scholar of Balliol College in Oxford) and his so-called Kindergarten?
Cecil Rhodes (you’ve sure heard of him right) and Alfred Milner sought to unite the world, and above all the English-speaking world, in a federal structure around Britain. Both felt that this goal could best be achieved by a secret band of men united to one another by devotion to the common cause and by personal loyalty to one another. Both felt that this band should pursue its goal by secret political and economic influence behind the scenes and by the control of journalistic, educational, and propaganda agencies.
I will let you do your own research, but I would just like to put one member of Milner’s group under the spotlight for a hot minute.
John Buchan.
It should interest you to know that, having been personally invited to South Africa by Alfred Milner in 1901, John Buchan was placed in charge of resettlement of displaced Boers and agricultural reform.
Like Monbiot, Buchan was a skilled writer. Buchan wrote 39 Steps among other things. Monbiot writes for The Guardian, but hey man at least it’s journalistic and educational.
Like Monbiot, he was awarded a scholarship (although neither of them were Rhodes scholarships) to enter Brasenose College in Oxford.
Brasenose College in Oxford, together with All Souls, Balliol, and New College in particular, are fertile breeding grounds for potential recruits into organizations like Bilderberg. The same system exists in the US, just different colleges, different names, same goals.
So these “comfortable” that George is attempting to afflict right here, well they look to me like his fellows. I do not want to suggest that George Monbiot may have been recruited during his time at Oxford. Oh man, I just did.
Relationships.
this might not go along with the article but ive have wondered about it for a while. Let me throw you a what if question/situation out there. From what i see most of the funding is from donations, dvds and educational courses. Why not use the permaculture system to create a business to increase funding? Say like a tree plantation for lumber/ pulp, or a cattle farm. Or how bout get a major land deal and partnership with a government agency in the mid east and convert some wasteland on a massive scale? id like to see some of that going on. I have to agree with this one guys article i read on here a while back. If the business isnt sustainable economically without volunteers then it is not really going to do much outside of people making there gardens grow better. thoughts?
Hard to read an article that begins with a spectacularly wrong premise. “Cutting spending means taking money from the poor.” No, cutting spending means stealing less taxes from everybody. It also means less mass murder of foreigners and nefarious intrusion into the lives of the domestic serfs.
Harry I am in Yemen designing a major new project. I have just been in Abu Dhabi designing an energy efficient house and garden project example. I am not the best writer in the world and I am very busy on the ground either in Australia or internationally and I get pulled into the classroom quite a lot where I keep getting a good result creating active students, so I feel obliged to keep teaching. I am much better at just talking, in fact I can really wing it on straight-up talk style so Harry do you think sound files would work if I report in that way with a few photos?
~ Tired World, by Saga (lyrics adaptively-reinterpreted)
The short answer to the question posed at the end, to resist the force that enslave the public:
– Education. We need to educate people about liberty. mises.org is a great place to start.
– Empowerement. People need to become more independent in various aspects (food, energy, financial, etc.). Permaculture is a great tool in this area.
There are two sides to a story. The article seems to propose that cutting government spending is bad while raising tax is good. This is true on the assumption that the government spending is efficient and effective. But one has only to look at the ever increasing deficit to see that government spending is far from efficient. It is a loss making and debt piling entity. Operating this way, it not only transfers wealth from the people to favored groups (bankers, industries with strong lobbies, and of course, bureaucrats), but it also transfers wealth (robs) from future generation (debt has to be repaid right?). So cutting government spending can be actually good. It frees up resources (money, people, natural resources) for more productive enterprises (eg, small business and entrepreneurs). Similarly, resources will be freed up if tax is reduced. So instead of the government spending on for example, military, the money in people hand can be spend on for example, starting small business or saving up for a permaculture course.
So in anycase, we need to be alert when reading up articles, as there is often only one side of the story told. Always ask, what other vantage points are there?