Monday, December 16, 2024

Bitcoin, Billionaires, and Trump

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Donald Trump is assembling a government of the ultra-rich whose collective wealth is estimated at $344.4 billion, nearly 3,000 times greater than that of Joe Biden’s cabinet.  So how did an incoming administration go from populism to hyper-oligarchy in the blink of an eye?

The reasons are many.  One is the poverty of American political debate while another is a two-party system that forces voters to choose between awful and even worse.  Deep anger over inflation is a third, while the fact that Dems were beholden to Silicon Valley mega-donors is a fourth since it prevented them from criticizing Trump’s ties to the super-elite.  

But yet another factor is at work: a financial boom that’s growing more manic by the week.  Not only is the frenzy boosting the US economy relative to all other bourgeois nations, but it’s boosting Trump relative to all other bourgeois politicians.  The result is a combined national, political, and financial upsurge unprecedented since the Republican heyday of the 1920s.

It was not always thus.  As recently as the 1980s, the United States accounted for just 30 percent of the leading global stock index according to Financial Times columnist Ruchir Sharma, while the US share of world markets lagged behind that of Japan in the mid-90s and behind China for much of the aughts.  But “quantitative easing” in the wake of the 2007-08 financial meltdown altered the relationship by injecting vast quantities of central-bank capital in an effort to stabilize markets.  QE critics cite it as a classic example of the “Cantillon effect” – so called for a pioneering eighteenth-century Irish-French economist named Richard Cantillon – in which financiers closest to the source are the ones who benefit most. 

Richard Cantillon

Since the US Federal Reserve was among most aggressive in pushing QE, American banks and corporations therefore pulled out ahead.  The US bourgeoisie benefited from the boom and then benefited from the bailout as well. 

The results have been dramatic.  Financial markets are now soaring, economic polarization is shooting through the roof, while the US share of total stock-market capitalization has risen by nearly 30 percent over the last decade according to Bloomberg columnist John Authers.  With $1 trillion in foreign capital pouring into the US per year, Sharma notes, “the term ‘American exceptionalism’ is hotter than ever” among international investors.

But American exceptionalism has grown hotter still since Election Day, with the Dow, S&P 500, and Nasdaq – up 4.9, 5.9, and 9.6 percent respectively – outpacing almost all other major international indices, which have either been flat or down over the same period.

And then there’s bitcoin, up a stunning 46 percent beginning on Nov. 5.  Back in 2021, Trump called bitcoin “a scam,” but now he’s filling his administration with crypto enthusiasts.  Elon Musk, who will be in charge of slashing the federal workforce, is a major backer of Dogecoin, a crypto currency or “memecoin” created in 2013 as a joke but which has rocketed up 267 percent since Election Day.  Vivek Ramaswamy, his partner in staff reduction, is peddling bitcoins via a wealth management business he’s starting called Strive.  Scott Bessent, Trump’s choice for treasury secretary, is an outspoken crypto advocate, while Howard Lutnick, who is being tagged as secretary of commerce, is a major backer of a crypto firm called Tether.  Other crypto boosters include Paul Atkins, Trump’s choice to head the Securities and Exchange Commission; David Sacks, a venture capitalist whom he has just named AI-crypto czar, and Steve Witkoff, a real-estate magnate who has been appointed as a special Middle East envoy.  Indeed, Witkoff is teaming up with Trump’s no-less-enthusiastic sons Eric and Don Jr. to launch a crypto platform called World Liberty Financial. 

“I think America will be the crypto capital of the world,” Eric recently told CNBC.  “I fully support it.  My father fully supports it.”  With bitcoin recently surging past $100,000 before pulling back slightly, he said at a crypto conference in Abu Dhabi that he is “confident” it “is going to hit $1 million.” *

When rhetoric reaches such heights, it’s a sure sign that markets are overheating, and trouble is on the way.  With the crypto and Artificial Intelligence bubbles intersecting and interacting in new and unexpected ways, the financial scene is outdoing the feverish run-up to the 2008 meltdown when traders bought and sold mortgage-backed securities that turned out to be worthless.

 

If so, three things seem clear.  One is that with bitcoin far outpacing stocks and bonds, it’s plain that the growing stream of capital entering the United States is heading straight for the boom’s frothiest sector.  After all, crypto is the ultimate in fictitious capital, a pseudo-currency that is useless as an instrument of exchange other than on black markets and whose only function is financial speculation.  Created in August 2008 at the height of the financial crisis, it has already seen one crash, a dizzying 74-percent plunge from November 2021 to December 2022, and will undoubtedly see another.

 

A second thing that’s clear is that Eric Trump’s prediction that bitcoin will hit $1 million may be a self-fulfilling prophecy since his father’s backing will likely send it even higher.  A third is that the magic is rubbing off on Trump himself. 

 

The last is essential to any understanding of the Trump phenomenon.  The president-elect has not backed down from his threats to round up 11 million immigrants, to use the Justice Department to go after political enemies, or to pardon more than 1,200 “J6’ers” who have either pled guilty to or been convicted of crimes stemming from the January 2021 Capitol Hill insurrection.  If anything, he’s doubling down, telling “Meet the Press” on Sunday that members of a congressional committee that investigated the uprising “should go to jail” on the ludicrous grounds that they “deleted and destroyed” evidence pointing to Nancy Pelosi as the real culprit.  Among the questions that the Trump transition team is now asking high-level defense and intelligence appointees, according to the New York Times, whether they agree that the 2020 election was stolen and that the January 6 insurrection was justified.  If they say no to either, the clear implication is that they’re out.

 

This is a dictatorship in the making.  Yet the financial boom amounts to a capitalist roar of approval.  Jamie Dimon, CEO of JPMorgan Chase, the country’s largest bank, says that bankers are “dancing in the street” because Trump is promising to lower interest rates.  Authers agrees: 

 

“The return of Donald Trump to the White House ... has underpinned the recent surge in US assets.  Deregulation and tax cuts, coupled with a miserable dose of protectionism to hit everyone else, are ample reason to expect another US triumph.”

 

So capitalists like what they see in the new administration and are driving up US financial markets in response.  But the phenomenon is built on sand.  As the Marxist economist Michael Roberts points out, real GDP growth in the US is lagging in historical terms, slipping from an average of four percent per year during the “golden age” of the 1950s and 60s to three percent during the early 2000s and less than two percent since 2008.  With US corporate bankruptcies in 2024 surpassing 2020 pandemic levels, he says, “the US economy is doing worse than in the 2010s and worse again compared to the 2000s.”  His conclusion: “The story of US exceptionalism is really a story of Europe’s collapse.”

The Trump boom is likewise a story of Washington’s collapse.  After a generation of gridlock, Trump looks good because he is now bullying Congress into submission.  The higher markets go, the more he looms over Capitol Hill and the more Republicans fall into line.  Like an insect caught in a spider’s web, a decrepit legislative branch is yielding to the powers of hyper-presidentialism without a fight.  Indeed, Trump’s most odd-ball cabinet nominees – Christian warrior Pete Hegseth for secretary of defense, anti-vaxxer Robert F. Kennedy Jr. for health and human services, GOP hitman Kash Patel for director of the FBI, etc. – are advancing so smartly at this point that he may not have to follow through on threats to forcibly adjourn the Senate in order to ram through appointments on his own.

But what happens once markets crash, as they inevitably will?  No one knows although the damage is certain to be extreme.  But where lesser men would slink away in embarrassment, Trump is made of sterner stuff.  Instead, he’s far likelier to use the crisis to ram through rightwing measures that will be even harsher and more extreme.  For the proletariat, the message is clear.  The bourgeoisie will do its best to foist the costs on the working class rather than on the capitalists who caused the crisis in the first place.  It’s the old story of privatizing benefits and socializing costs.  The more capitalism destabilizes, the more dangerous Trump will grow.

 *As of the time of publication of this essay, midnight Dec, 16, 2024, bitcoin was valued at $104,525.60

 


Monday, December 9, 2024

Meltdown


Steve Bannon, Donald Trump, Sebastian Gorka

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Daniel Lazare

12.08.24

More than four weeks after Donald Trump’s election victory, it is increasingly clear where America is heading: toward militarization and authoritarian rule.

Trump’s strong-man tendencies have long been evident.  Although largely forgotten, he repeatedly accused Democrats of rigging the vote during the 2016 presidential campaign, warning that he might not concede even if the official tally went against him.  Such threats grew more and more ominous in 2020 until Trump finally sent his forces crashing across Capitol Hill in early 2021 in a last-ditch attempt to block Joe Biden’s victory and force Congress to name him the winner.  If Trump had lost in 2024, there would have been every reason to expect more of the same, i.e. more violence, more phony accusations of electoral theft, and more attempts to overturn the results. 

But now that he has won, Trumpian authoritarianism is in full view.  Examples include:

--  His ultra-confrontational cabinet picks;

--  His plans to force the Senate to adjourn so he can bypass the confirmation process and appoint cabinet members on his own;

-- His vow to use the military to round up as many as 11 million illegal aliens;

-- His promise to pardon hundreds of January 6 insurgents the moment he takes office;

 

-- And his close ties to the authors of Project 2025, the rightwing Heritage Foundation’s proposal for a sweeping purge of the federal bureaucracy and a “unitary executive” that will infuse the government with Christian nationalist values.

 

Trump’s cabinet choices run the gamut from ultra-right to centrist.  They include Marco Rubio, one of the most rightwing members of the Senate, who is his pick for secretary of state, and Pete Hegseth, his choice for defense secretary, who is a Christian nationalist who believes that “just like the Christian crusaders who pushed back the Muslim hordes in the twelfth century, American Crusaders will need to muster the same courage against Islamists today.”  But they also include relative moderates such as Tulsi Gabbard as director of national intelligence and the ever-cranky Robert F. Kennedy Jr. as head of health and human services, who, despite his anti-vax views, is not otherwise illiberal.  Scott Bessent, his choice for treasury secretary, is openly gay while Howard Lutnick, his pick for commerce secretary, is a former Democrat -- as, of course, is Trump.

 

They're an eclectic mix that only have one thing in common: each in his or her own way is an affront to the Washington establishment, whether it's the “intelligence community” up in arms over Gabbard,  the healthcare industry terrified by the accession of RFK , or homophobic sectors of the Trump coalition .  The result is a take-it-or-leave-it approach in which Trump fairly dares the old guard on Capitol Hill to just say no.

If they do, the next step is plain: a constitutional showdown.  With the help of Mike Johnson, the ultra-conservative speaker of the House, Trump is bruiting plans to force the Senate to adjourn against its will so he can use his recess powers to ram through \ appointments on his own.  The strategy, based on an obscure constitutional clause in Article II, section three, is setting off alarms throughout official Washington, with even the libertarian Cato Institute describing it as a “norm-defying abuse” that would trigger “a full-blown constitutional crisis.”

But that is what Trump wants.  With the Supreme Court likely on his side, Trump wants a crisis so he can cow Congress into submission and stretch the Constitution to the limits so as to accommodate his authoritarian designs.  If the maneuver works, the upshot result will be a giant step toward Argentine-style neo-Peronism in which the chief executive casts off constitutional restraints and rules on his own by decree.   

Using the military to round up illegal aliens would cement authoritarianism even more firmly in place.  Article I, section nine, gives the president emergency powers to suspend habeas corpus “in cases of rebellion or invasion [as] the public safety may require it.”  So it's a perfect opportunity for a president armed with unilateral powers to denounce illegal immigration as a foreign invasion and announce that he is suspending judicial review so that he can round up millions of people and place them in special detention camps.  And if Trump rounds up millions of immigrants, then it's not too difficult to imagine other roundups that might follow, e.g. leftwing activists who defend immigrants and their interests, anti-Zionists, etc.

As for Project 2025, it is a 1,000-page plan whose ultimate goal is to turn the federal bureaucracy into a conservative battering ram.  Among the goals is banishing DEI, i.e. diversity, equity, and inclusion programs, and other such “woke” initiatives and prosecuting “anti-white racism” instead.  Project 2025 also calls for barring the National Institutes of Health from engaging in stem cell research, rejiggering environmental regulations so as to favor fossil fuels, and criminalizing pornography.  Heritage Foundation president Kevin Roberts is explicit about Project 2025's goals.  “The long march of cultural Marxism through our institutions has come to pass,” he writes in the introduction.  “The federal government is a behemoth, weaponized against American citizens and conservative values, with freedom and liberty under siege as never before.”  

“Conservatives have just two years and one shot to get this right,” he adds.  “With enemies at home and abroad, there is no margin for error.”  

 

Then there are Trump’s plans to enlist Elon Musk and Vivek Ramaswamy in a Javier Milei-like assault on the federal workforce along with his refusal to cooperate with federal agencies like the General Services Administration that traditionally oversee the transition process.  The plan is to decimate a government apparatus that he views as little more than enemy territory while elevating himself high above it. 

“He should not trust the politicized and weaponized intelligence and law enforcement agencies that hobbled his presidency the first time,” declares Mike Davis, the leader of another pro-Trump outfit called the Article III Project.  “It’s a hostile takeover on behalf of the American people.”

Finally, there is Special Prosecutor Jack Smith’s decision to drop charges related to the Capitol Hill insurrection and Trump’s promise to pardon hundreds of “J6’ers.”  Together, they show how the federal government has given up holding Trump to account for the most serious constitutional breach since the Civil War and how the uprising itself is well on its way to being officially vindicated.  The very idea of free elections is coming under assault.  Henceforth, the only elections Republicans regard as valid will be elections they win.

What does it all add up to -- authoritarianism, Bonapartism, or out-and-out fascism?  With ostensible Marxist organizations all over the map with regard precisely what Trumpism at this stage represents, the answer in this writer's view is the first.  One reason is structural.  Broadly speaking, authoritarianism (or hyper-presidentialism to use the academic term) operates within existing constitutional guidelines.  Both Juan Perón of Argentina and Rodrigo Duterte of the Philippines submitted to regular elections, for instance, and even January 6 would have ended on a constitutional note even if Trump had succeeded in throwing the election into the House since Republicans would no doubt have followed the procedures outlined in the Twelfth Amendment to the letter.

 

This is not to say that those constitutional procedures are anything other than obsolete, arcane, and undemocratic.  Considering that the Twelfth Amendment dates from 1803 and has never been updated, they are all those and more.  But what's important is that America’s weak and decrepit constitutional structure would have remained formally intact.  By contrast, Napoleon III, the subject of Marx’s famous study, The Eighteenth Brumaire of Louis Bonaparte, overthrew the existing constitution after launching a coup d’état in 1851 so that he could draft a new constitution from scratch, one that allowed him to serve an unlimited number of ten-year terms and gave him have total authority to declare war, sign treaties, form alliances, and initiate laws.  The result was not authoritarianism under the existing constitution but dictatorship over it.  As for fascism, it dispenses with constitutionalism entirely by positing a mystical union between führer and volk that is above the law, one characterized by “unconditional authority downwards, highest responsibility upwards.”  Goebbels thus described Hitler as “the greater German, the führer, the prophet, the fighter, that last hope of the masses, the shining symbol of the German will to freedom” – anything, that is, except a mundane politician or officeholder.

 

Class relations are also key.  Trotsky described fascism as an attempt to resolve the contradictions of capitalism within the confines of the bourgeois state.  Since “[t]he productive forces are in irreconcilable contradiction not only with private property but also with national state boundaries,” the result is an effort “to solve this contradiction through an extension of boundaries, seizure of new territories, and so on.  The totalitarian state, subjecting all aspects of economic, political and cultural life to finance capital, is the instrument for creating a super-nationalist state, an imperialist empire, the rule over continents, the rule over the whole world.”

 

But Trump is not remotely there yet.  He is not a military expansionist, for example, and indeed attacked neocon hawk Liz Cheney during the campaign for launching “forever wars” from the comfort of Washington.  His choice of middle-of-the-road Wall Streeters like Lutnik and Bessent to head up negotiations with China indicates that, for now at least, he is intent on using financial rather than military means in dealing with the “threat” posed by the PRC.  

 

Bonapartism is meanwhile classically associated with a high pitch of class conflict in which the would-be ruler plays off the warring elements against one another so as to maintain himself in power.  Yet the current period is marked by working-class quiescence in which strikes, despite a recent uptick, are still running at a rate 75 percent or more below that of the late 1960s and early 70s.  

None of which is to say that Trump will not “graduate” to Bonapartism in the event of an economic or foreign-policy crisis or other disruption.  In fact, with the world in growing turmoil, such crises are more likely than not, which is why Bonapartism, i.e. outright political dictatorship, is plainly on the agenda.  Fascism, similarly, cannot be ruled out either although it will take political breakdown and a massive upsurge in revolutionary class struggle before it advances to the fore.

To sum up: Trumpism has not yet reached the Bonapartist stage, much less the fascist.  Nonetheless, constitutional constraints have been cast aside so forcibly.  The reason is the political breakdown of the last 30 years or so, which has been unprecedented.  The legislative branch is paralyzed, corruption is soaring, economic polarization is out of control, while ordinary citizens have rarely been more pessimistic.  An eighteenth-century constitution that is increasingly at odds with the needs of modern society is making a mockery of anything resembling democratic self-government.  If we toss in global warming, imperial overstretch, economic instability, and an increasingly powerful drive to war, then it is evident that capitalism is entering into the greatest crisis in history, a perfect multi-dimensional storm involving everything from high finance and the environment to political structure.  With its limits and contradictions, American democracy was never more than a crude facsimile.  But even that it is collapsing under the strain of a growing capitalist breakdown.

 

As far as the US is concerned, this means that mass repression, cultural reaction, and crude expressions of racism, sexism, and homophobia will all follow.  Life in America is changing rapidly, and there is nothing that middle-class radicals, “progressive” journalists, or the washed-up liberals who constitute the Democratic Party’s left wing can do to return it to anything resembling normalcy.

The only force capable of combatting such tendencies is the proletariat.  But it can do so not by restoring the old pseudo-democracy but by replacing it with a real democracy in the form of a workers’ state.  The more repressive and unstable the Trump administration grows, the more the working class must take the lead.  Five programmatic elements are absolutely crucial:

-- No to one-man rule.

 

-- No to mass deportations.

 

-- No to war.

 

-- Yes to workers’ solidarity on both sides of the US-Mexican border.

 

-- Yes to a democratic constituent assembly elected on the basis of strict proportional representation whose task will be to reconstruct America’s broken system of government from the ground up.  

 


Thursday, November 28, 2024

Panel on Aidan Beatty's book, The Party is Always Right


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I participated in a panel on Aidan Beatty's book, The Party is Always Right on Saturday, Nov. 23, 2024. Besides Beatty and myself other panelists included Peter Ross and Gerry Downing.  Steve Zeltzer, who organized the panel, served as moderator of the online discussion. Arriving in the audience for the Q&A part of the panel were several representatives from the Socialist Equality Party, including David North, Tom Mackaman, Joseph Kishore and Evan Blake. The online newspaper of the Socialist Equality Party, the World Socialist Website, ran an edited version of the sound recording of the panel that only included the remarks of the SEP members and a brief response from the author.  Missing from the WSWS version of the panel recording were Beatty's presentation, my remarks, the presentation of Peter Ross and Gerry Downing as well as the remarks of Steve Zeltzer. I am posting here the full video recording of the panel.  Viewers can make up their owns minds who is attempting a serious investigation of the history of Gerry Healy and the Workers Revolutionary Party and who is fearful of an accounting of an important episode in the history of Trotskyism.  



Friday, October 18, 2024

The Crisis of Democracy and the 2024 Election

George Washington presiding over the Constitutional Convention

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by Dan Lazare

10.18.24

The one safe prediction we can make about the upcoming presidential election is that it can only result in a further intensification of the crisis of US democracy.

This is not Marxist boiler-plate in which bourgeois democracy is always bankrupt and capitalism is always in its death throes.   This is the real thing.  A lot of concerns are weighing on voters’ minds as Election Day nears, the economy, the climate crisis, inflation, and housing prices, to name just a few.  But among the most pressing is an across-the-board constitutional breakdown that is rapidly accelerating.  For example:

-- The Electoral College, which nearly quadruples the clout of voters in lily-white Wyoming versus those in minority-majority California, is playing an increasingly outsized role.  In the first two centuries of the American republic, the EC overturned the popular vote on only three occasions: in 1824, 1876, and 1888.  But it has already done so twice since November 2000 and may well do it a third time next month.

-- The Senate is more imbalanced than at any point since 1820.[1]  Thanks to equal state representation, it allows the 54 percent of the population that lives in just ten states to be outvoted four-to-one by the minority in the other forty.  A majority can be gleaned from senators representing just 17 percent of the country while a filibuster can be gleaned from 41 senators representing as little as eleven.

-- The House is so heavily gerrymandered that Republicans next month may enjoy as much as a 16-seat advantage according to estimates by the Brennan Center for Justice. 

-- The Supreme Court is increasingly undemocratic not just in terms of decision making but structure.  Five of the six justices who comprise the court’s six-member conservative majority were nominated by presidents who lost the popular vote (i.e. Roberts, Alito, Gorsuch, Kavanaugh, and Barret), while four were confirmed by senators representing a minority of the population (Gorsuch, Kavanaugh, Barrett, and Thomas).  Given that Clarence Thomas, the oldest member of the court, is just 76, the rightwing judicial dictatorship will likely continue well into the mid-2030s.  If Trump wins a second term, it will continue even longer.

-- Federalism is in shambles.  Since January, Texas has seized control of a portion of the US-Mexican border in the town of Eagle Pass, 140 miles west of San Antonio.  This is outright insurrection, yet the White House is paralyzed.

-- Racial imbalances are growing.  More than 80 percent of racial minorities live in the ten biggest states that are outvoted in the Senate while states that are rural and white tend to benefit most from the Electoral College.  The multi-racial urban majority thus finds itself more and more disenfranchised.

-- What makes this even worse is that reform is essentially impossible thanks to the dysfunctional amending clause laid out in Article V, which stipulates that two-thirds of each house plus three-fourths of the states must consent before changing so much as a comma in America’s holy of holies.  Thirteen states representing as little as 4.4 percent of the nation can thus veto any effort at structural change, no matter how modest.  The US is as frozen as the Celestial Empire on the eve of the 1911 revolution.

The upshot is a perfect impasse.  All advanced capitalist states are under growing strain due to the post-2008 “long recession” and a host of problems that go along with it.  But since no country is saddled with a constitution that is as ancient, dysfunctional, and all-encompassing as the US version, no one faces a mechanical breakdown of anywhere near the same magnitude.  It is the equivalent of a car with a missing headlight, a missing wheel, and a sputtering engine.  But even if it leaves Americans stranded by the side of the road, there is nothing they can do because Article V renders them powerless.  Even a constitutional convention is a non-starter since Article V stipulates that its decisions are merely recommendations subject to the same two-thirds, three-fourths rule.  Wealthy minority interests are using the breakdown to impose an increasingly rightwing agenda.  Yet the democratic majority is powerless to respond.  

Powerless under the existing system, that is, but not under a new one of its own making.

There is a way out -- not a constitutional convention as outlined in Article V, but a constituent assembly along the lines of France in 1789 or Russia in 1917.  The difference is crucial.  Where one takes place under the Constitution, which describes how it may be called and what it can do, the other takes place over the Constitution since it is a gathering of the constituent elements – “we the people” and all that – who created it in the first place.  It is therefore free to operate on the Constitution as a whole, not according to the document’s rules, but according to its own, which is to say those of direct democracy.  If the assembly votes to ditch the Second Amendment, then out it goes.  If it votes to drop the Constitution in toto and draw up a new plan of government to take its place, then out it goes too.  

This is not a constitutional solution, since no such solution exists.  Rather, it is a revolutionary solution whose goal is either to create a new state or re-found the existing state on an entirely new basis.  Hence, it is one that only the industrial proletariat can implement.  

The US thus faces a classic choice between breakdown and revolution, between decay, authoritarianism, and a deepening social crisis on one hand and socialist democracy on the other.  The founding fathers have done us the favor of closing off all other escape routes.

As for the individual candidates running in 2024, they are an expression of the political crisis rather than in any sense an answer to it.

Kamala Harris is the candidate of the center-right status quo.  While she claims to stand for change, she has made it crystal clear that she will continue White House policies based on war, repression, economic royalism, and inaction in the face of accelerating climate change.  She represents the politics of muddling through, of doing whatever it takes to make it from day to day without regard to long-term considerations.  When vice-presidential candidate Tim Walz recently suggested that the Electoral College should go, the Harris campaign forced him to recant.  Even mentioning the structural crisis was more than Harris could bear.

Donald Trump, by contrast, is the candidate of lower-income voters who are “mad as hell and are not going to take it anymore,” to quote the 1976 movie “Network.”  They support him not despite the fact that he is a bull in a china shop, but because of it.  In their blind fury, they can think of no solution other than smashing stuff up and are therefore counting on him to do it.  His authoritarianism and destructiveness flow from a political structure that is broken, irrational, and increasingly undemocratic.  

For what it’s worth, this writer rates Trump’s chances at 41 percent and Harris’s at 39, with a 20-percent chance of January 6-style chaos instead.  But regardless of who wins, the great American breakdown will continue unabated.

 




[1] Frances E. Lee and Bruce L. Oppenheimer, Sizing Up the Senate: The Unequal Consequences of Equal Representation (Chicago: Univ. of Chicago Press, 1999), 10-11.

 


Thursday, October 3, 2024

Farrell Dobbs speaks: The Minneapolis General Strike and the Teamsters Union

Farrell Dobbs 4 volume history of the Teamsters union



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We are introducing the new HISTORY section of the permanent revolution website.

Our first contribution to the new section are four segments of lectures by Farrell Dobbs. They provide important lessons on how revolutionaries can intervene in the class struggle. The lectures were delivered by Dobbs to a Summer Camp of the Young Socialists in August of 1964. 

*Farrell Dobbs was one of the greatest leaders of the working-class upsurge of the 1930's. Shortly after being won over to Trotskyism through conversations with supporters of the Socialist Workers Party in Michigan, Dobbs became a leader and one of the key organizers of the Minneapolis General Strike of 1934. He was also the chief architect of the drive to organize over the road truck drivers into the Teamsters Union. That historic campaign resulted in the Teamsters becoming the largest union in the U.S.   Dobbs accomplished this in the face of fierce opposition from the bureaucratic national leadership of the Teamsters Union.  Dobbs achievement and his long-term impact on the American labor movement was nicely summarized in a New York Times obituary,

 

After the strike gained the union its recognition, Mr. Dobbs became secretary-treasurer of Teamster Local 574 and set out to organize the truckers of the Middle West into a body that spoke with one voice. By 1938 he led the drive that got 250,000 over-the-road union drivers a uniform 12-state contract.

Previously, the teamsters' union had deemed intercity truck drivers as not worth the bother, and the union's president at the time, Daniel Tobin, contemptuously referred to them as ''trash.'' The national teamsters organization was little more than a loose confederation of autonomous locals.

Mr. Dobbs went after the intercity drivers and organized regionally, before going full time into politics to do battle with the Stalinists. James R. Hoffa took over the regional council in the mid-1940's and expanded it into the South. When he replaced the discredited Dave Beck as the teamster president, Mr. Hoffa rapidly brought control by the central union to the West and East as well.

Mr. Hoffa, himself eventually convicted and jailed, remarked before his later disappearance that he could not agree with Mr. Dobbs's politics or his visions of unions as a political force. But Mr. Hoffa said Mr. Dobbs, using long-distance drivers to spread the word, was ''enormously beneficial'' to the American labor movement. (Wolfgang Saxon,  Farrell Dobbs, Trotskyist, Dead, Sought the Presidency Four Times,  New York Times, November 3, 1983)

He was one of 17 Trotskyists that were imprisoned during World War II for taking a principled position against imperialist war.  In later years he ran for President several times on the SWP ticket.  He became National Secretary of the Socialist Workers Party in 1953, succeeding James P. Cannon,  a position he held until his retirement in 1972. He was the author of a four-volume history and memoir of the Minneapolis struggles. Dobbs died in 1983.

SWP leaders James P. Cannon, left, and Farrell Dobbs during Smith Act frame-up trial in 1941.Both were convicted, jailed for 13 months for opposing the U.S. rulers’ imperialist war policy.


Many thanks to the creative work of Michigan historian Matthew Siegfried in providing the wonderful graphic images to accompany the audio of Dobb's lectures.

To start the playlist click on the image below.

To watch each segment individually select one of the following links:

Lecture 3 Trotskyist Leadership of Local 574 Part 1

Lecture 3 Trotskyist Leadership of Local 574 Part 2

Lecture 2 General Strikes and the Communist Party Part 1

Lecture 1 Overview and the Coal yard Strikes Part 2


     


Monday, September 23, 2024

Agent-baiting: a hysterical slander from David North


Front page of Newsline, Oct. 30, 1985, reporting on Healy's expulsion

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by Alex Steiner

On September 17, 2024, David North posted a review of a book by Aidan Beatty, The Party is Always Right. [1]

I am not at this time writing a review of Beatty’s book.  Nor am I going to comment on the numerous criticisms of Beatty’s book cited by North. I may do that in the future, but at this time I am only responding to a hysterical and deranged outburst of slanders and threats launched against me by David North in his review of Beatty’s book.

The first thing to be said is that the author of this book is Aidan Beatty, not Alex Steiner.      The fact that I agreed to an interview with Mr. Beatty  and provided him with factual information about the history of a movement in which I once participated does not make me in any way responsible for its content.  It’s an obvious point but one worth repeating in the face of North’s insinuation that all the people who were interviewed by Beatty were a pathetic lot of embittered haters who gladly conspired with him in trashing the reputation of a figure who North considers a great revolutionary leader, namely Gerry Healy. To put some historical perspective on these events it should be kept in mind that Healy, who died in 1989, was North’s mentor and teacher until differences between North and Healy emerged in 1982. North finally split with Healy shortly after Healy was expelled from the organization he led for many years, the UK-based Workers Revolutionary Party.  Healy’s expulsion came about when his sexual and physical abuse of dozens of female comrades over many years was exposed. [2] North is furious with Beatty for writing what he considers a one-dimensional portrait of Healy as some kind a “monster” (his words). His point is that Beatty failed to recognize that Healy was, in addition to his dark side, also a great revolutionary leader prior to the 1980’s. (While North does acknowledge that Healy degenerated politically and personally in his later years, he all but ignores in his review the sexual and physical abuse inflicted by Healy.)  By extension North also condemns all those who were interviewed by Beatty. As North says,

The testimony upon which Beatty’s oral history is based consists exclusively of allegations made by Healy’s political enemies, and whose subjective hatred of Healy is embedded in their repudiation of revolutionary politics decades ago.

Now whether we think that Beatty’s assessment of Healy is fair or not, it should be obvious to anyone but the willfully blind that North’s wholesale trashing of the dozens of people interviewed by Beatty is the mark of a person who has long since abandoned any notion of science, objectivity or fairness. North apparently feels that he literally owns this history, as if it were a sacred script to which no one has a right to contribute but him and his appointed proxies.  On the other hand, North thinks that any “unauthorized” contribution to this history can only be made by “Healy’s political enemies, and whose subjective hatred of Healy is embedded in their repudiation of revolutionary politics decades ago.”

In a section of his review devoted to the circumstances of the split with Wohlforth, North claims that the information I provided Beatty was false and I was being deliberately “dishonest” in presenting a distorted picture of the history of the Workers League and the Workers Revolutionary Party because I am a “political renegade who abandon[ed] and betray[ed] the ideals of …[my] youth” and I “developed a pathological hatred of ...[my] former comrades.”  That North descends into such hyperbolic insults based on his amateurish attempts at psychoanalysis is a clear indication of his own dishonesty and lack of objectivity.  

North’s case that I was a “dishonest witness” revolves around Beatty’s account of the events of August 30, 1974, and August 31, 1974, in which Tim Wohlforth, the long-time National Secretary of the Workers League, was removed from that position and his companion, Nancy Fields, was suspended.  Beatty does make one minor factual error in recounting those events when he writes that Wohlforth was “expelled”.  I had nothing to do with that factual error.

In relation to those events, Beatty writes,

The WRP’s American sister party, the Worker’s League, expelled its own leader, Tim Wohlforth, in 1974 when it was discovered that his partner, Nancy Fields, had an estranged uncle who worked for the CIA. Wohlforth’s account of this is genuinely disturbing (and is confirmed by Workers League member Alex Steiner, who was also present): Healy’s accusations were produced during a stage-managed move against Wohlforth at an international party meeting in Montreal. Allowing tension to build over several days, Healy finally dropped his bombshell during a marathon all-night meeting, when attendees were bleary-eyed and exhausted and more liable to go along with Healy’s actions. [3]

What I “confirmed” to Beatty was not that “Wohlforth was expelled”, as North insinuates, but  that I thought that as far as the facts were concerned of what happened on August 30 and August 31 Wohlforth’s account was largely correct.  And if you read Wohlforth’s own account, he never said he was expelled either.  Here is the relevant passage from Wohlforth’s memoir,

I will entertain a motion," it was Healy's voice again, "to suspend Miss Nancy Fields from party membership pending a full investigation by a control commission of her CIA connection and to remove Tim Wohlforth as party secretary due to his failure to follow proper security procedures and therefore endangering the world movement." "So moved." It was Mazelis, my old friend and comrade. "All in favor raise your hands." The hands went up, all of them. All eyes were upon Nancy and me. Then Nancy slowly raised her own hand. My hand followed. I do not know why. It just went up in the air. It was 2 A.M. and the meeting was over. [4]

Nor should it be any shock for North to hear that I thought Wolfforth’s account of the facts in his memoir were largely credible. Where his memoir described experiences of which I was a part, they coincided with my recollection of those events. I said the same thing some 15 years ago when I pointed to North’s own distortion of the history of the Workers League. I wrote then,

In his self-serving memoir, The Prophet’s Children, Wohlforth provides a good description of the disorientation and the sickness that had gripped the movement in this period [1973-1974].[5]

Whatever you may think of Wohlforth’s behavior and subsequent political evolution, his factual description of the events of the daily life of comrades in the Workers League during this period is true. One example is the following selection from his memoir,

Our typical member worked a full day at his or her job and then, instead of going home, headed for the party office, bringing a slice of pizza or a hamburger for supper. Then, together with one or two others, the comrade would go to a dangerous poor neighborhood to sell papers, knock on doors for subscriptions, perhaps pick up half-a-dozen teenagers to hold a youth meeting, organize a dance or basketball game or just to talk at great length and try to convince someone to do something. Then it was back to the office to talk it all over and finally head for home. Sometimes even at home the comrade would have to try to keep awake to work up a small article for the newspaper. This wearying schedule was not kept only one night a week, either; it could be every night! [6]  

My comment about this passage was,

Although Wohlforth somehow manages to avoid facing up to his own responsibility for this disorientation [that led to such a destructive practice A.S.], his description of the day-to-day toll this had on comrades is accurate enough. [7]

I also made the point that while Wohlforth was being evasive as to his own responsibility for this state of affairs, the main culprit was Healy since Wohlforth was only carrying out on American soil what Healy was doing in the UK.  The daily life of comrades in the Workers League that Wohlforth describes could have just as easily been written about comrades in the Workers Revolutionary Party in the UK during that period. Behind what could only be considered an abuse of the comrades in the U.S. and the UK was a false perspective of the nature of the period. And this false perspective came from Healy and the entire leadership of the International Committee. That perspective, affirmed at various Congresses and resolutions of the ICFI and its sections, was that we were then (in the 1970’s) entering into a period of civil war where the immediate question of power would shortly be posed.  It was therefore necessary for all sections of the ICFI to be transformed into mass parties that could lead the working class.  With the exception of the WRP in Britain and the group in Sri Lanka, all the other sections of the ICFI, in the U.S., Germany and Australia, were small propaganda groups having no more than a few dozen members that struggled to publish a weekly newspaper let alone dream of a daily paper.  Even the WRP only had a few hundred active members and were hardly in a position to become a mass party. The huge gap between the actual capabilities of these small groups and the false perspective of the “objective requirements” to prepare for  revolution and civil war created a frenzy of pragmatic activism that resulted in many comrades burning themselves out. 

Ever since the split with Healy in 1985 North has been embarked on a campaign to sanitize the history of the Workers League and the International Committee from the period starting in 1970 until 1982 when North first challenged Healy. In North’s reconstructed narrative, the crisis of the Workers League in 1973-1974 was solely due to the destructive conduct of Wohlforth and his companion Nancy Fields. That was also Healy’s version of events. This revisionist narrative artificially separates Wohlforth’s activity – which was indeed destructive – from Healy’s leadership of the International Committee.  From the premise that all that was wrong with the Workers League in 1973-1974 emanated from Wohlforth and Fields it follows, according to North’s reconstruction, that once Wohlforth was removed and a new leadership trained by Healy took over, the Workers League was restored to a healthy existence having learned the “lessons” of the struggle against Wohlforth.  But this fairy tale version of history flies in the face of the facts. The false perspective under which the ICFI was operating in the period leading up to Wohlforth’s demise continued afterwards.  As evidence, take the following excerpts from the  Manifesto of the 7th Congress of the ICFI in 1977, some three years after Wohlforth left the Workers League:

The International Committee, because of its intransigent record in rejecting all forms of protest and adaptation to bureaucracy represented by revisionism, is now a pole of attraction to the revolutionary forces being thrown up in the Middle East and Africa and in all the advanced capitalist countries. (p.4)

From proclaiming that it was “a pole of attraction” to revolutionary forces throughout the planet, a statement for which there was not a shred of evidence, the document went on to declare – employing Healy’s pseudo-dialectical language - that all cadre of the ICFI now bore direct responsibility for the success of the coming civil war,

Now, the accumulated contradictions explode to the surface of the class struggle, creating an unprecedented world situation requiring a revolutionary practice of cognition able to abstract essential objective knowledge of the new content and tempo of the revolution, a negation at a higher level of the revolutionary period of October 1917 and the first five years of the Communist International. At this level all the intervening developments of counter-revolution and the struggle against Stalinism are subsumed, cancelled and overcome at the same time. (pp. 6-7)

There are also indications in this document of the gross capitulation to bourgeois nationalism and Stalinism that mark this period of the International Committee. For instance, it takes the following swipe against the Socialist Workers Party,

To this disgusting mockery of socialism and proletarian internationalism the Socialist Workers Party apologists of imperialism have added an even viler parody. They have openly sided with the malicious State Department inspired campaign against the revolutionary Cambodian regime, depicting it as a government of ‘mass murderers’… (p. 24) [8]

The reference was to the Khmer Rouge regime of Cambodia which was responsible for one of the worst genocides of the 20th century against its own people. While it might be correct to point to the attempts of the State Department to manipulate public opinion about Cambodia, to call this regime of mass murderers “revolutionary” is nothing short of nauseating.

So while it is true that Wohlforth failed to face up to his own responsibility for the disastrous disorientation of the Workers League in that period, it is also true that David North has always sought to airbrush this period of the history of the Workers League and blame everything on Wohlforth, thereby absolving Healy and the perspective of the International Committee of any responsibility for this calamity.  He did that in what passes for his “official” historical narrative of the Workers League, ‘The Heritage We Defend’ and he continues that trope in his review of Beatty’s book.

North’s account is also guilty of factual errors that are far more serious than Beatty’s. He writes,

Steiner arrived at the camp with a substantial number of former Workers League members on the afternoon of August 30, 1974. A meeting of the National Committee was then held, at which Healy asked that the committee entertain a motion for the readmission of all these former members. The motion was adopted unanimously, and the reinstated comrades were warmly welcomed. They then left the camp and were not in attendance at the subsequent meetings of the National Committee.

Now the meetings North recalls took place 50 years ago almost to the day, but I still recall  them vividly.  North’s account of these meetings is a bare-faced lie. The group of returned comrades, which included me, were actually in attendance at the meeting where we were re-admitted into the party. When that meeting began, we were asked to stand a few feet outside the area where the meeting was convoked in view of the fact that we were not yet members with a right to attend the meeting. But as soon as the vote to re-admit us was taken, we were invited in to join the remainder of the proceedings.  And North’s statement that we “then left the camp and were not in attendance at the subsequent meetings of the National Committee” is simply false. We returned to our hotel rooms after that meeting, but we also returned to the camp the next day and participated in the meeting of the National Committee where the vote was taken to suspend Fields and remove Wohlforth as National Secretary.  When I was re-admitted as a member the previous day I was also reinstated as a member of the National Committee and so was able to participate in the debate and the vote to suspend Fields and remove Wohlforth.  

To provide a taste of the atmosphere of this meeting, I distinctly remember the gleeful look on Healy’s face as he said, “It’s Christmas!” as if he was about to take a bite out of the unfortunate roasted pig with the apple in its mouth laid out on the dining room table.  At the time I did not understand Healy’s  reaction but years later it became clear to me that Healy took sadistic pleasure in bringing down Wohlforth in front of the party members that Wohlforth  had led for more than a decade. To be honest I was also happy to witness Wohlforth’s downfall. So were the vast majority of those participating in that meeting. It was a natural reaction to the abuse we suffered, personally and politically, at the hands of Wohlforth and Fields.  That abuse resulted in 50% of the members of the Workers League leaving in a period of less than a year.  But it was not a thoughtful and objective reaction. Had we stopped to reflect on the causes of Wohlforth’s behavior we would have naturally had to ask what the role of his mentor Healy was.

Thus, when North says that,

In fact, Steiner was not, and could not have been, present at the National Committee meetings of August 30 -31.

…he is lying.

So much for North’s statement that I am a “dishonest witness”.

But this bit of prevarication is small potatoes when it comes to North’s next malicious slander against me.

He writes,

Beatty reports that I “was blessed with cultural capital, as well as raw economic capital.” [p. 138] His main informant for this inquiry into my family is Alex Steiner, whose political hostility is seasoned by personal animosity and subjective jealousy. The FBI will appreciate Steiner’s services as an informer.

Beatty nowhere says that I was his “main informant” for information about North’s private life and North gives no indication why he thinks that is the case.  In fact Beatty in a footnote cites his major sources as various publications, some from Trinity College which relied on information provided by North himself! [9]  In any case, I could not have been Beatty’s “main informant” for the information he reproduces since I never knew most of those details about North’s background in the first place.  Of course I had some general knowledge of North’s background given our work together over the years, i.e.  his upper middle-class upbringing, the importance of classical music in his family, his years at Trinity College, etc., but I certainly knew nothing about the name of his grandfather or the fact that his father died when he was three! I’m sure I knew less about North than other members of the Workers League.  And what is it about any of the information Beatty cites, all of which is part of the public record, that North finds so threatening?

It is also odd that of all the people North earlier characterized as, “Healy’s political enemies … whose subjective hatred of Healy is embedded in their repudiation of revolutionary politics decades ago” I am the only one that North specifically names - falsely – as the source of Beatty’s information about his private life.  Does this have something to do with the fact that my colleague Frank Brenner and I have written dozens of essays over the years exposing the fact that North and the organization he heads, the International Committee, is a sectarian outfit hostile to the working class that has been spectacularly unsuccessful in building a movement? [10]

Finally, I must ask, why would North use the manufactured lie that I am Beatty’s “main informant” about his private life to insinuate that I am or could be an FBI informer?  North has been around the movement long enough to know that insinuating without any evidence, that someone is or could be a police agent is one of the worst things you can do. It goes beyond mere slander. You are in effect jeopardizing that person’s physical safety by creating suspicions about whether they are informants.  He knows perfectly well that saying someone’s name in the same sentence as “FBI informer”, even if you don’t explicitly accuse that person of being an FBI informer, puts a target on their back, especially in this day of social media where every rumor is exponentially amplified. 

Inside his party North is completely intolerant of any criticism or opposition, and anyone who raises differences is expelled. (For a recent example, see the statement by Samuel Tissot,  Anatomy of a sect: ICFI expels a leading member of French section. ) It isn’t surprising that a leader who operates that way will lash out with hysteria and slander when faced with external criticism. But this latest slander linking me to the FBI is a new low, the verbal violence of a political thug.

 

 

Notes:

[1]  David North, Biography as demonology: Aidan Beatty’s The Party is Always Right: The Untold Story of Gerry Healy and British Trotskyism, World Socialist Web Site, Sept 17, 2024.  Unless otherwise indicated, all further quotes from North are taken from this review.

[2]  The charge of Healy’s abuse of comrades was investigated by a Control Commission of the Workers Revolutionary Party whose findings ratified Healy’s expulsion.  See  the account published by Norman Harding, a rank and file member of the Workers Revolutionary Party who presided over the Control Commission, Staying Red: Why I remain a socialist, Chapter 16,Uncovering and Overcoming the Horror: 1984 TO 1986,  https://stayingred.wordpress.com/wp-content/uploads/2011/10/16.pdf

[3]  Aidan Beatty, The Party is Always Right: The Untold Story of Gerry Healy and British Trotskyism, Pluto Press, London, 2024, p. 62.

[4]  Tim Wohlforth,  The Prophet’s Children: Travels on the American Left, Humanities Press, New Jersey, 1994, p. 245.

[5]  Alex, Steiner, The Downward Spiral of the International Committee of the Fourth International,  Chapter 3, page 65, https://permanent-revolution.org/polemics/downward_spiral_ch03.pdf

[6]  Wohlforth, op. cit., p. 223.

[7]  Steiner, op. cit., p. 65.

[8]  Manifesto of the 7th Congress of the International Committee of the Fourth International: May 21-28, 1977, Published by the International Committee and printed by Astmoor Litho Ltd, Runcorn, Cheshire, U.K., 1977.

[9] Beatty, op. cit., p. 204. Text of Note 9:

The information on North/Green’s early life is taken from: ‘Open Semester Program’, Trinity Reporter, Vol. 1,    No. 6, January 1971; Trinity Tripod, 28 January 1969; ‘“I Personally Am Very, Very Dissatisfied With American Society”: College Students Decry “Passivity” of the Past, Defend Today’s Activism’, Trinity Alumni Magazine, Summer 1968 https://www.abc.net.au/listen/programs/musicshow/david-waghalter-green/6877784; ‘I. Waghalter, 68, Long a Conductor’, New York Times, 8 April 1949; Waghalter, Toni [Obituary], New York Times, 1 December 1964; https://www.tagesspiegel.de/berlin/beatrice-waghalter-green-geb-1913-857929.html ; information on Trinity itself is taken from Peter J. Knapp; Anne H. Knapp. Trinity College in the Twentieth Century: A History (Hartford, CT: Trinity College, 2000).

[10]  For Steiner and Brenner’s  comprehensive analysis of North and the International Committee, see Marxism Without its Head or its  Heart  and The Downward Spiral of the International Committee of the Fourth International. The reader can also find a list of the key essays on the theory and practice of the International Committee up until June 2018 referenced at the end of my essay, The Gutter Politic of David North. For a first-hand account of the authoritarian internal practices of sections of the ICFI, see Samuel Tissot’s report of his expulsion from the French section of the ICFI, in Anatomy of a sect: ICFI expels a leading member of French section. Tissot’s account also sheds light on the dishonest picture painted by the World Socialist Web Site of the French section of the ICFI as a fighting force within the French working class. In reality this “section” consists of no more than a dozen members who have not been able to recruit a single person since it began its existence several years ago.