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THE INSIDE HISTORY OF THE ISRAEL LOBBY

Former top CIA analysts Kathleen and Bill Christison give CounterPunchers the real scoop on the Israel lobby and precisely how powerful it is. Read how US presidents from Wilson, through FDR to Truman were manipulated by the Zionist lobby; how Israel bent LBJ, Reagan and Clinton to its purpose; how Bush's White House has been the West Wing of the Israeli government; how Washington's revolving doors send full-time Israel lobbyists from think-tanks to the National Security Council and the Pentagon's Office of Special Plans. For all who want a true measure of the Lobby's power, the Christisons' 8-page dossier, exclusive to CounterPunch newsletter subscribers, is a MUST read. CounterPunch Online is read by millions of viewers each month! But remember, we are funded solely by the subscribers to the print edition of CounterPunch. Please support this website by buying a subscription to our newsletter, which contains fresh material you won't find anywhere else, or by making a donation for the online edition. Remember contributions are tax-deductible. Click here to make a donation. If you find our site useful please: Subscribe Now!

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Today's Stories

June 3, 2006

Robert Fisk
Liberators as Murderers

James Petras
Is Latin America Really Turning Left?

Ron Ridenour
Return to Cuba

 

June 2, 2006

Kathy Kelly
Right Livelihood

Alan Maass
"A Mercenary Army": an Interview with Jeremy Scahill on Blackwater in New Orleans

Mickey Z.
Haditha Massacre was Inevitable

Dave Lindorff
Don't Think Twice: Bush and Rumsfeld as Ethics Advisers

Chris Kutalik
Troqueros Flex Muscles at Long Beach

Sunsara Taylor
Countdown to a Betrayal: Making Change Without Democrats

Sam Husseini
Can Pacifica Live Up to Its Promise?

Mike Ferner
More, Lots More

Website of the Day
Free Daniel McGowan!

 

June 1, 2006

Brian Cloughley
Haditha and the Farrago of Lies: War Crimes Start at the Top

David Peterson
Iran: a Manufactured Crisis

Lee Ballinger
Media Myths About the South: What Backlash Against the Dixie Chicks?

Jonathan Cook
Olmbert in DC: Bold Ideas and Ugly Intentions

Mike Whitney
Offers and Ultimatums: Endgaming Iran

Paul Rockwell
Smearing Ron Dellums

Clifton Ross
Millennium Blues

Kevin Zeese
Return of the Petri Dish Warriors: a New Biowar Arms Race Begins in Maryland

Website of the Day
The Monkees and Johnny Cash

 

May 31, 2006

Dave Lindorff
DNC Death Wish 2006: the Do Nothing Party

Joshua Frank
Al Gore, Environmental Titan?: Some Inconvenient Truths About the Ozone Man

Roxanne Dunbar-Ortiz
Stop Saying This is a Nation of Immigrants!

P. Sainath
Three Weddings and Funeral: Farmer Suicides in Vidharbha

Ramzy Baroud
On Palestinian Violence

Seth Sandronsky
The War on Nurses: a Joint Attack by US Senate and NLRB

Mickey Z.
Scapegoating Mexicans is an American Tradition

Ralph Nader
Breakaway Bases: Keeping LIttle Leaguers Safe

Jeffrey St. Clair
Dirk's Dirty Money: Gale Norton in Slacks

Website of the Day
Storm Cloud Over New Orleans

 

May 30, 2006

Lee Ballinger
The Real Reason Rock the Vote is Falling Apart

Jonathan Cook
Shin Bet and the Israeli Academy: Partners in Human Rights Abuses?

Gary Leupp
Now Introducing, the Office of Iranian Affairs

John Ross
Disappearing the Disappeared

Robert Jensen
The Four Fundamentalisms

Michael Dickinson
Silencing the Peace Protester of Parliament Square

Michael Carmichael
Zionist Democrats: the DLC and Israel

Tim Wise
Of Immigrants and "Real Amurkans"

Harry Browne
Ken Loach's History Lesson

Website of the Day
Louisiana

 

May 27 / 29, 2006
Weekend Edition

Paul Craig Roberts
The Evil Within

Kathleen Christison
Surrender vs. the Right to Exist

Kathy Kelly
Fear of Flowers in Iraq: a Report from
Sulaymaniyah

Christopher Reed
The Abominable Dr. Ishii: the Pentagon and the Japanese Mengele

Lawrence R. Velvel
The Moral Rot in Congress: a Constitutional Right to Graft?

Tom Barry
The Politics of Tom Tancredo

Gary Leupp
The Latest Neocon Lies About Iran

Col. Dan Smith
Freezing History: Iran and the Uses of "Preventive" War

Ron Jacobs
Blocking Military Ports: One, Two, Three Many Olympians

Don Fitz
EPA Goes Lead Wild: Acceptable Levels of Poisoning

Fred Gardner
What's the Matter with Oregon?

Peter Montague
Radioactive Troika: Bush, the Nuclear Power Industry and the New York Times

Raymond Garcia
Teens as Political Scapegoats

John Farley
Euston Manifesto: the Latest Gameplan from the Pro-Imperialist Left

Seth Sandronsky
Mexico After NAFTA: the Washington Post's Trouble with Numbers

Tia Steele
A Gold Star Mother's Memorial Day Plea

Lenni Brenner
"Howl", 50 Years Later: Allen Ginsberg's Silly Liberal Politics

Dr. Susan Block
God Has Sex, Makes Big Box Office

Scott Michael Perey
An Open Letter to Bono: Why are You Financing a Video Game Promoting the Invasion of Venezuela?

Jeffrey St. Clair
Playlist: Please Help Hilton Ruiz

Poets' Basement
Davies, Smith-Ferri, Mickey Z,, Buknatski, and Engel

Recipe of the Weekend
Impeach-Mint Punch

Website of the Weekend
Trojan Syndrome

 

May 26, 2006

Col. Douglas MacGregor
Fire the Generals!: the Failure of Military Leadership in Iraq

Brian J. Foley
Who Will Stand Up to Bush's Drive to Attack Iran?

Michael Dickinson
Mining Glaciers: Water or Gold?

Missy Comley Beattie
Stuck in a Cake-Walk War

Pierre Tristam
The Few, the Proud, the Murderers

Joe Allen
Put a Disclaimer on the Bible, Not the Da Vinci Code

Kona Lowell
Thank You, Fox News

Roger Burbach
Bush Targets Chavez and Morales

Website of the Day
Women Resisting War from Within

 

May 25, 2006

Les AuCoin
Faith-Based Missile Defense: the Folly of Star Wars

Jeff Halper
Countdown to Apartheid

Dave Lindorff
Bombing Without Regrets

Ron Jacobs
Voting Rights and Multilingual Ballots

Bob Wing
Finding Common Ground in New Orleans: an Interview with Malik Rahim

Elise Gould
College Grads Face Weak Labor Market

Robert Bryce
Iraq's Fuel Crisis

Website of the Day
Oh Lay!

 

May 24, 2006

Michael Donnelly
Operation Backfire: Criminalizing Eco-Dissent

Patrick Cockburn
Why the US May Have to Quit Iraq Sooner Than It Planned

Lucinda Marshall
Involuntary Motherhood: the Cacophony Over RU 486

Dave Lindorff
A Winning Impeachment Argument

Shmuel Rosner
Israeli Advice on Wall-Building: Be Ruthless

Moshe Adler
The Promised Land: Immigration, Israeli Style

Heather Gray
Land Reform and American Agriculture

Pratyush Chandra
Angels and Demons in Nepal

Paul Craig Roberts
In Memoriam: Lloyd Bentsen

Floyd Rudmin
Why Does the NSA Engage in Mass Surveillanc of Americans?

Website of the Day
Presentensing the Future

 

May 23, 2006

Paul Craig Roberts
Paranoia as Policy: How Bush Brewed the Iran Crisis

Sharon Smith
Shooting to Kill on the Border

Sunsara Taylor
Meet the New Christian Conquistadors: Ron Luce's Holy Warriors

Joel Whitney
The Most Tenacious Man on Capitol Hill?: an Interview with John Conyers

Alice Cherbonnier
Total Information Awareness for Whom? FOIA, the Press and the Spooks

Ron Jacobs
Optimism of the Will

Kristen Ess
The Crisis for Palestinian Political Prisoners

Patrick Cockburn
Which is the Real Iraq?

Website of the Day
Pearl Jam: Life Wasted

 

May 22, 2006

Alan Maass
Seeger, Springsteen and "We Shall Overcome": an Interview with Dave Marsh

William Blum
But What About the Marshall Plan?

Elaine C. Hagopian
It's Not Hamas Terror Israel Fears: the 1988 Compromise Revisited

Stan Cox
Eat Your Lawn!: Inside the Lawn Racket

Chris Floyd
Vexed to Nightmare

Alexander Cockburn
Flying Here: the Red Flag, from Berlin to West Bengal

Website of the Day
Mass Graves at Maza-i-Sharif

 

 

May 20 / 21, 2006

Patrick Cockburn
iraq is Disintegrating

Kathy Kelly
Back to Iraq

Ralph Nader
Coerced Confessions

Hugh O'Shaughnessy
Chavez Takes London

Greg Grandin
The New York Times Versus Chavez

P. Sainath
What Exactly is "Development"?

Greg Moses
A Little Fascism Goes a Long Way

Stephen Philion
"Illegal": Lou Dobbs, Do You Really Wanna Go There?

Landau / Hassen
"United 93": Exposing Military Incompetence

Fred Gardner
The Humiliation of Clifford Robinson

Missy Comley Beattie
Handling the Truth

Michael Dickinson
Headscarf: Uproar in Turkey Over the Hijab

Seth Sandronsky
Social Security and Medicare: When Journalists Manufacture a Crisis

Luke Young
Inside Cambodia

John Zavesky
Praise the Lord and Pass the Joystick

Ben Tripp
Love It or Leave it

Jeffrey St. Clair
CounterPunch Playlist: a Short History of Funk

Poets' Basement
Landau, Davies, Orloski and Ford

 

May 19, 2006

Winslow T. Wheeler
Democrats and the Defense Budget: Just as Ruinous as the Republicans

José Pertierra
Posada Carriles: Extradite or Prosecute, There's No Other Option

John Ross
The Marcos Factor: Mexico's Electoral Wildcard

Dave Lindorff
Virtual America

Jeff Juel
Ecological Extortion in the National Forests?

Alan Farago
Defanging the Endangered Species Act

Eric Johnson-DeBaufre
Building a New Sanctuary Movement

José Martî
Letter to Manuel Mercado: "The Revolution Desires Complete Freedom"

Jonathan Cook
Marriage Ban Closes the Gates to Palestinians

Website of the Day
Fix the Movie and Revolutionize the Movie Industry!

 

May 18, 2006

Bill Simpich
Building a Movement that will be Stronger After the US is Out of Iraq: Lessons from the 1970 Student Strike

Patrick Cockburn
The Carnage in Basra

Christopher Brauchli
The Needle and the Damage Done: the Death Penalty's Ministers

Nora Barrows-Friedman
The Nakba in Palestine

Victoria Buch
In the Name of Israel's State Security

Eric Ruder
Nuclear Hypocrites

George Wuerthner
The Ice Cream Wilderness?

Juan Santos
The Border War Comes Home

Website of the Day
Help Stop Animal Torture at Devore

 

May 17, 2006

Lenni Brenner
The Lobby and the Great Protestant Crusader

Carlos Villarreal
Immigrant Scapegoats and the Manufacturing of a Crisis

Larry Everest
Catching Rumsfeld Red-Handed: an Interview with Ray McGovern

CounterPunch News Service
Hugo Chavez: the London Sessions

Lee Sustar
Compromise and Conquer? Inside the Senate Immigration Bill

Anthony Papa
Dealing with the Rockefeller Drug Laws: a Tale of Two DAs

William S. Lind
Ink Blots and Super Fortresses: More Contradictions from Iraq War

Bruce K. Gagnon
Where are the Real Leaders?

JoAnn Wypijewski
Has Anything Really Changed at Fort Sill?

Website of the Day
The Pacific Northwest: Animated

 

May 16, 2006

Ward Churchill
Punishing Free Speech

Ted Honderich
The Moral Barbarism of Blair and Bush

Paul Craig Roberts
Ministry of Fear

Annie Nocenti
"Jesus was a Zombie?": Letter from Haiti

Charles V. Peña
Regime Change Redux: US Plans for Iran Go Far Beyond Nuclear Efforts

Ron Jacobs
Circling the Wagons and Building Walls: Bush and Co.'s Immigration Policy

Norman Solomon
A Sick, Hungry Well-Armed Nation

Harvey Wasserman
Why the Fundamentalists Are Freaking Out Over the Da Vinci Code

Michael George Smith
Bush, Immigration and the Democrats

Harry Browne
New Frontiers of Shamelessness: Bono's Independent

Website of the Day
Seeger: "Bring Them Home"

 

May 15, 2006

Alexander Cockburn
Abe Rosenthal's Times

William Blum
Appealing to the US is Not Very Appealing

Tanya Golash-Boza and Douglas A. Parker
Dehumanizing the Undocumented: an Immigration Policy Statement by Sociologists Without Borders

Dave Lindorff
Gen. Hayden's Sedition Against the Consitution

Debra Schaffer Hubert
The Battle Cry of G.I. Jesus: Capital Punishment for Gays?

Patrick Cockburn
Now It's Shia Troops Versus Kurdish Troops in Iraq

Tom Turnipseed
The Messianic Presidency

Ken Livingstone
Welcome to London, President Chavez!

Gideon Levy
Game Theory: Hamas is Winning

Mickey Z.
Is Impeachment Too Good for Bush?

Jeff Faux
What Bush's Speech Will Miss: Immigration and the Desperate Mexican Economy

Website of the Day
Iraq War Images Uncensored

 

May 13 / 14, 2006

Vijay Prashad
The Indian Road: Left Triumph

Joan Roelofs
Why They Hate Our Kind Hearts, Too

Kathy Kelly
Imagining Survival

Michael Neumann
On the Value and Stability of Israel

Dr. Susan Block
Hookergate

Daniel Cassidy
How the Irish Invented Poker

Christopher Reed
Rebel Journalist: the Memoirs of Wilfred Burchett

Mike Roselle
The Fallacies of Greenpeace

Saul Landau
Up the Mekong to Cambodia

Robert Fisk
The Inescapable Beat: US Military Bases in Brazil

Ralph Nader
Sally Mae and the Student Loan Swindle

Evelyn Pringle
Rove and Fitzgerald Play Monopoly

Fred Gardner
The Marketing of "Cannabis Americana"

Stanley Heller
Is Another Mass Murder of Arabs in the Offing?

Conn Hallinan
China: a Troubled Dragon

Valentina Palma Novoa
"They Ordered Me to Lay My Head in a Pool of Blood"

David Krieger
Why Nuclear Weapons Should Matter

Col. Dan Smith
The Senate's Peace Quilt

Christopher Brauchli
Mister Bush and Mister Zarqawi: Video Stars

Jeffrey St. Clair
Playlist: What I'm Listening to This Week

Poets' Basement
Davies, Ford, Engel, Guthrie, Orloski and Louise

Website of the Weekend
Not Your Soldier!

 

May 12, 2006

Michael Snedeker
Death by Snitch: the Attempted Murder of Michael Morales

Dave Lindorff
What Fourth Amendment?

Leah Fishbein / RJ Schinner
Santorum vs. Santorum-Lite: In Pennsylvania, Abortion is Absent from the Debate

Brian Kwoba
The Immigrant Rights Movement: Birth of a New New Left?

Chris Kromm
Why Southern Progressives Should Support an Estate Tax

Kai Diekmann
45 Minutes with Bush: the BILD Interview

David Swanson
Bush Tops Nixon: the Most Despised President in History

Virginia Tilley
Hamas and Israel's "Right to Exist"

Website of the Day
The CounterPunch Story That Made the Front Page of the NYT Today

 

May 11, 2006

Sunsara Taylor
Battle Cry for Theocracy: Meet the Shock Troops of the Christian Youth

Jonathan Cook
A Short History of Unilateral Separation

Tariq Ali
High-Octane Rocket-Rattling Against Iran Won't Work

Wayne S. Smith
Recycled Non Sequiturs: State Dept. Presents No Evidence Cuba is a "Terrorist State"

Mike Whitney
Secretary of Lies

Pratyush Chandra
The Royal Nepalese Army and the Imperialist Agency

Joshua Frank
Save Darfur? Not So Fast

Mickey Z.
Does Property Destruction Equal Eco-Terrorism?

Francis Boyle
Abe Rosenthal Stole My Kill Fee!

Edward S. Herman / David Peterson
US Aggression-Time Once Again: Target Iran

Website of the Day
The Missing Papers of John Roberts

 

May 10, 2006

Werther
Axiom of Evil

Larry Birns / Michael Lettieri
Is Venezuela the New Niger?: the Bush Administration is Trying to Link Hugo Chavez to Iran's Nuclear Program

Ramzy Baroud
Iran and the US: Nuclear Standoff or Realpolitik?

Kevin Zeese
The Corporate Takeover of Iraq's Economy

Evelyn Pringle
Peter Rost vs. Goliath: an Ex-Pfizer VP Takes on Big Pharma

Amira Hass
Hungry and Shell-Shocked

Michael Donnelly
Nature Loses a Champion

Ron Jacobs
Singers in a Dangerous Time: Dylan and Haggard Take the Stage

Sharon Smith
Abstinence Backfires

Website of the Day
Camp In with Ray and Cindy

 

May 9, 2006

Ray McGovern
My Encounter with Rumsfeld

M. Shahid Alam
The Muslims America Loves

Moshe Adler
Mayor Bloomberg: Even Worse Than Giuliani

Walter MIgnolo
Beyond Populism: Natural Gas and Decolonization of the Bolivian Economy

Keeanga-Yamahtta Taylor
Blacks, Latinos and the New Civil Rights Movement

William S. Lind
The Other War Heats Up: Fighting on Afghan Time

Todd Chretien
Does It Really Matter Who Runs the CIA?

Dave Lindorff
Pelosi is in for a Big Surprise in November

Ishmael Reed
Furor Over the "Colored Mind Doubles"

Website of the Day
Two Years for One Joint

 

May 8, 2006

Kate McCabe
"No Less Courage": Political Prisoners' Resistance from Ireland to Gitmo

Paul Craig Roberts
A Nation of Waitresses and Bartenders

Col. Dan Smith
Privatizing West Point: "Duty, Honor, Trademarks..."

Norman Solomon
Gag and Smear: the Misuses of "Anti-Semitism"

Ingmar Lee
Bush's Destabilizing Nuke Deal with India

Robert Jensen
"Covering" and the Law

Ricardo Alarcon
The Struggle for Immigrant Rights in a Neo-Liberal Economy

Will Youmans / M. Kay Siblani
The Danders of Misunderstanding Sudan

Alexander Cockburn
The Row Over the Israel Lobby

Website of the Day
Labelle Does The Who: We Don't Get Fooled Again

 

May 6 / 7, 2006

Jeffrey St. Clair
The Rise and Possible Fall of Richard Pombo

Ariel Dorfman
Mission Akkomplished: the Secret History of George W. Bush

Joe Allen
Death Row at the "Castle": Inside the Military's Judicial System

Fred Gardner
From Ritalin to Cocaine: Steve Howe's Untold Story

Jeff Taylor
Democratic Masqueraders: Plutocracy and the Party of the People

Saul Landau
The Immigration Malaise

Stephen Philion
Lessons from the Fordham 9: Challenging CIA and Military Recruiters on Campus

Trish Schuh
Islamophobia, a Retrospective

Ralph Nader
The Tragedy of False Confessions

Robert Fisk
Through a Syrian Lens: Is the US Provoking Civil War in Iraq?

Paul Cantor
Parody of a Protest: We Came, We Marched, And ... ?

John Holt
"This Goddamn Place Looks Like Hell"

James Ryan
When is a West Point Grad, No Longer a West Point Grad?

Lawrence R. Velvel
Harvard and Its Presidents: Plagiarism, Ghostwriting, and the Character of Larry Summers

Greg Moses
Canto for a Cinco de Mayo Weekend

Laray Polk
Homeland Security Spending: a Dallas Case Study

Ron Jacobs
Subterranean Fire: a Review

Ben Tripp
No News is Good News

Mickey Z.
9/11 Movies, Anti-War Protests and "Illegal" Humans

Jeffrey St. Clair
Playlist: My Own Private, Springsteen-Free JazzFest (Week Two)

Poets' Basement
Kirbach, Landau, Davies, Engel, Buknatski, Subiet, Ford and Thoreau

Website of the Week
Lawrence Welk Meets the Velvet Underground

 

May 5, 2006

Vijay Prashad
The Charmless Inconveniences of the Bourgeoisie

Robert Fisk
Sy Hersh versus the Bush Administration (and the DC Press Corps)

David Swanson
Washington Post Writer Rushes to Rummy's Defense Against Ray McGovern

Mearsheimer / Walt
The Storm Over "the Israel Lobby"

Dave Lindorff
They're Back!: The Looters of Social Security

Sarah Ferguson
A Day Without Gringos: Immigrants Flooded the Streets of NYC on May, But Where Were the White Peaceniks?

CounterPunch News Service
Costs of US Wars: Bush's GWOT Now Fifth Most Expensive in US History

Corporate Crime Reporter
David Sirota: Still Shackled to the Democrats

Website of the Day
Watch Ray KO Rummy

 

May 4, 2006

John F. Sugg
Sami al-Arian's Final Persecution

Will Potter
Green is the New Red: How the Bush Administration is Using Terror Laws to Prosecute Nonviolent Environmental Activists

Jonathan Cook
The Long Path Back to Umm al-Zinat

Roger Burbach
Bolivia's Radical Realignment

Chris Dols
Colbert's Moment (And Why the Beltway Gang Didn't Get It)

Christopher Brauchli
Sen. Frist Without Clothes

Tony Swindell
"Our Descent into Hell has Begun"

Website of the Day
The Two Lobbies

 

May 3, 2006

Robert Bryce
The Self-Locking F-22

Paul Craig Roberts
John Kenneth Galbraith, a Great American

James Petras
The Rise of the Migrant Workers' Movement

Lee Sustar
Democrats and Immigrants: the Grand Evasion

David Bolton
The War on Drugs is a War on Ourselves

Joshua Frank
Challenging Hillary

Jeffery R. Webber
Evo Morales' Historic May Day: Bolivia Nationalizes Gas!

Website of the Day
Happy Birthday, Pete Seeger!

 

May 2, 2006

Evelyn Pringle
Gouge and Profit: Will Big Oil Destroy

Tariq Ali
On the Death of Pramoedya Ananta Toer: Indonesia's Greatest Writer
the US Economy?

Saul Landau
Life in the Mekong Delta

Paul Craig Roberts
Endgame for the Constitution

Gary Leupp
"Out of Iraq, Into Darfur?"

Ron Jacobs
May Day in Asheville

Sen. Russell Feingold
Our Presence is Destabilizing Iraq

Anthony Papa
Rush Limbaugh and the Politics of Drug Addiction

Website of the Day
Rainbow Books

 

 

May Day, 2006

Norman Finkelstein
The Israel Lobby: It's Not Either / Or

Christopher Reed
Mercury's Message, 50 Years On

Michael Donnelly
Rummy's Not the Only One Who Should Go: What About the War's Liberal Enablers?

Dave Zirin
A Day Without Pujols

Mike Whitney
The "N' Word: Take Back the Oil Companies!

Gilad Atzmon
Self-Haters Unite!

Missy Comley Beattie
Marching for Peace

Alexander Cockburn
The War on Terror on the Lodi Front

Website of the Day
In Your Face, Mr President

 

April 29 / 30, 2006

Peter Linebaugh
May Day with Heart

Ralph Nader
Break Up the Big Oil Cartel

Robert Bryce
The Scandal of the V-22: It Kills, It Crashes, But It Won't Die

Rev. William Alberts
Praying for Peace or Preying on Peace? Time for People of Faith to Censure Bush

Lee Sustar
Opening a New Movement

John Chuckman
Xenophobia in a Land of Immigrants

Eric Ruder
An Interview with Camilo Meija on the War and Immigrants

Seth Sandronsky
Securing the Homeland for Whom

Ron Jacobs
Neil Young's Call to Arms

Ben Tripp
A Fork in the American Road

Fred Gardner
Forgotten Memories: Personal and Political

Don Monkerud
Corruption Reform in the Age of Abramoff: Not a Roar, But a Whimper

Tommy Stevenson
JazzFest, Tears and the Renewal of New Orleans

Lettrist International
Proposals for Rationally Improving the City of Paris

Contratiempo
Back to the Back of the Yards: the Jungle, 100 Years Later

St. Clair, Vest and D'Antoni
CounterPunch Playlist: What We're LIstening to This Week

Poets' Basement
Engel, Orloski and Guthrie

Website of the Weekend
Survival of the Fattest

 

April 28, 2006

James Ridgeway
What You Won't See in Flight 93, the Film

Ramzy Baroud
Hamas' Impossible Mission

Sarah Knopp
An Interview with Nativo Lopez on the May Day Protests

William S. Lind
Off With His Head!: But Rumsfeld's Should Not be the Only One That Rolls

Werther
Operation Canned Meat and Its Derivatives

April 27, 2006

Winslow T. Wheeler
How Much is the War Costing? How Many US Troops are Really in Iraq?

Robert Fisk
The United States of Israel?

Juan Santos
Immigration Endgame

Robert Jensen
Why Leftists Distrust Liberals

Dave Lindorff
Making America Safer: One Released War Crime Victim at a Time

Jose Pertierra
Honor and Injustice:the Case of the Cuban Five

 

April 26,2006

Robin Philpot
The Rich Life of Jane Jacobs

Sherry Wolf
Democrats, Their Apologists and Abortion: the Jig is Up

Pratyush Chandra
Nepal: a Saga of Compromise and Struggle

Joshua Frank
Zig-Zagging Through the War With John Kerry

Gary Leupp
The Neo-Cons and Iran: No Negotiations

Bill Quigley
Katrina: Eight Months Later

 

 

April 25, 2006

Gary Leupp
Wilkinson Speaks Out About the Coming War on Iran

Paul Craig Roberts
The World is Uniting Against the Bush Imperium

Linda S. Heard
Is the US Waging Israel's Wars?: the Prophecy of Oded Yinon

Ralph Nader
Political Science: Gingrich, "Futurism" and the Abolition of the OTA

Mike Whitney
Preparing for the Economic Typhoon

Michael Donnelly
Lutherans Betray Michigan's Loon Lake Wetlands for Pieces of Silver

Sharon Smith
Breathing New Life Into May Day

Website of the Day
SDS Ver. 2

 

April 24, 2006

Tim Wise
What Kind of Card is Race?

John Stanton
Strike Iran, Watch Pakistan and Turkey Fall

Dave Lindorff
Dangerous Times Ahead

Steve Shore
Berlusconi Defeated: The Long Wait is Over ... Or Is It?

Amadou Deme
Hotel Rwanda: Setting the Record Straight

Mickey Z.
15 Minutes of Radical Fame: America Meets Bill Blum and Ward Churchill

Ralph Nader
Lee Raymond's Unconscionable Platinum Parachute

Alexander Cockburn
Obama's Game

Website of the Day
Too Stupid to Be President?

 

 

 

 

Subscribe Online

Weekend Edition
June 3 / 4, 2006

Slow Economic Growth (Part One)

The System in Crisis

By PETER MONTAGUE

In the U.S., what we call "the system" is beset by multiple crises.

** The end of cheap oil is coming.

** Global warming is upon us.

** Water shortages are worsening in the U.S. and globally.

** Rising inequality divides the top 2% from the rest of us.

** The rising cost of medical care and the high cost of medical insurance weigh on the minds of most people.

** The promise of secure retirement is fading for many aging boomers (which of course affects their children).

** The social safety net created after the Great Depression is being shredded bit by bit year after year.

** Families and indeed the nation are deeply in debt.

** Widespread insecurity afflicts large portions of the populace (good jobs disappearing, debt rising, the children's future uncertain).

** A serious time crunch has beset many families.

** Some ecological limits have appeared on the horizon (no place left to throw away toxics; cost of some resources critical rising, etc.).

** The political party that controls the White House, the Congress, and much of the judiciary now owes its electoral success to a large group of people who believe the world is going to end soon, which may make earthly problems seem unimportant to many of them. For the first time in American history, a religious party now controls the government.[1]

Perhaps the future is bright

Perhaps "the system" will navigate through all these interlocking crises without encountering any serious economic difficulties, but perhaps not. It seems possible that as the combined effect of all these problems grips the nation more tightly, economic growth-rates may slow down further, dipping below their current levels.

Unfortunately, we are already getting a preview of how "the system" will respond to slowing growth. The rate of economic growth (measured by <http://en.wikipedia.org/wiki/Gdp>GDP) has been slowing for the past 35 years,[2,3,4,5,6] and the system's response has not been pretty. Without going into a lot of detail, I believe much of what passes for "the news" each day can best be explained as "system responses" to slowed growth.

For the 100 years spanning 1870 to 1970, the U.S. economy (measured by gross domestic product, or GDP) grew at an average annual rate of 3.4% per year. Since 1970, the U.S. economy has grown just 2.3% per year.[5,pg.5] This may seem like a small difference, but it really isn't because the effects are cumulative, year after year. The difference between two percent and three percent isn't one percent -- it's fifty percent.[5,pg.7; 6,pgs.63-75]

Here's another way to look at it: if the U.S. economy had grown at 3.4% per year since 1973, instead of 2.3%, the additional wealth created during the two decades 1973-1993 would have added up to an extra $12 trillion (adjusted for inflation) -- enough to replace every factory in the U.S., including all capital equipment, with a modern new factory; or enough to pay off the entire government debt plus all home mortgage debt plus all credit card debt.[5,pg.5]

If economic growth had maintained its historical level since 1970, the average family in 1993 would have had an additional $5,500 to spend each year. Over the 20 years, 1973-1993, the average family would have had at least an additional $50,000 of income -- enough for a young couple to buy a first home, a low-income family to maintain health insurance, or for someone to go to college. State and local governments would have collected an additional $900 billion in taxes during the 20 years -- to support schools, libraries, parks, public transit, emergency services, police and fire protection, affordable housing, local economic development, and so on. [5,pgs.10-11]

The U.S. is not unique. The trend of declining growth-rates can be seen in all the wealthy nations of the world, the 29 members of the OECD [Organization for Economic Cooperation and Development]. During each passing decade since 1970, growth in OECD countries has declined, compared to the previous decade.[6,pg.38] The trend of slowing growth doesn't affect just the average family. Even more importantly, it affects the super rich -- in the U.S., the one percent of us who own 50% of all private wealth, or, more broadly, the 5% of us who own 2/3rds of all private wealth.[7]

Understandably, the wealthiest few expect a decent return when they invest their capital, and slow growth makes decent returns hard to find.

What is a decent return on investment? Here's one way to answer that question. When the President's Office of Management and Budget (OMB) considers a new regulation (for example, to control mercury emitted by power plants) the agency asks whether the benefits justify the costs. They say to themselves, "This regulation will cost industry X dollars per year. How much wealth could those dollars create if they were invested with a return of Y percent per year? In that equation, OMB now sets Y equal to 7 percent. OMB assumes a typical business investment should yield a 7% annual return.[8]

Of course in recent years, many investors have been looking for 20% annual returns so 7% may seem puny by comparison. Still, 7% is twice the long-term historical rate of return on investment (measured as growth of GDP) and three times the average rate of return since 1973. So modern owners of capital expect decent returns that far exceed historical averages. Therefore they are likely to be unhappy if their return merely meets the historical average, and doubly dissatisfied with returns 30% below the historical average (e.g., 2.3% instead of 3.4%). They naturally believe they deserve better -- America deserves better -- the world deserves better -- and they believe government should help boost their returns one way or another. After all, capitalism as we know it would stop working if capitalists stopped investing, so providers of capital deserve a decent rate of return, they might argue, and they would have a point.

According to the hypothesis I'm describing here, five features of modern life have caused the downturn in economic growth in the U.S. (and in the rest of the industrialized world):

(1) Saturation of effective consumer demand; those who can afford to buy stuff already have about as much stuff as they need or can afford; indeed, to pump up demand further, U.S. industry now spends $250 billion each year on advertising.

(2) A reduced demand for fixed investment (such as factories) and working capital (money to meet business expenses and expand operations).[3; 6,pgs.37-39] It's getting harder to find safe, productive places to put capital to work these days, partly because of saturated consumer demand and partly because there's a glut of capital.[9]

(3) The proportion of people in the labor force can't increase much beyond where it is today;[3] all the able-bodied are pretty much already working or looking for work; the rest are children, elderly or disabled.

(4) The rate of growth of productivity of workers (the rate at which output per hour grows) has slowed in recent decades;[6,pgs.63-75]

(5) Some ecological limits have come into view -- for example, toxic industrial chemicals are now found everywhere on earth, from the tops of the tallest mountains to the bottoms of the deepest oceans and everywhere in between, including human breast milk. We can no longer convincingly argue that we can throw away unwanted industrial byproducts without affecting living things, so our byproducts must now be managed at considerable expense.[10,11]

The system has responded to these realities in the following ways:

System response No. 1: Easing Credit

No need to belabor this. Credit card debt, home mortgage debt and the national debt have all skyrocketed in recent years.[12,13] Debt is beneficial for those with money to lend, especially credit card debt, which now garners doubt-digit returns. As in no previous generation, young people now leave college (end even high school) saddled with debt.[14] As Kevin Phillips has pointed out, we are witnessing the "financialization" of the U.S. economy. In the year 2000, moving money around became a larger portion of GDP (20%) than manufacturing (14.5%).[1,pg.265; and see pgs. 265-346]

System response No. 2: Promoting International Capital Flow

This is what the corporate "globalization" project is about -- removing barriers for people with money to invest in cutting down the rain forests in Indonesia or setting up a cyanide-leach gold mine on native land in South America or northern Canada. Globalization is about clearing the decks for capital to cross borders unimpeded, in search of a decent return.

System response No. 3: Reduced Restrictions on Financial Firms

Banks, savings and loans, and brokerage firms used to be rigidly segmented by law; now all their functions have been legally merged. The savings and loan bailout in the '80s was the first result; the "dot.com" bubble of the late '90s was the second; the Enron-Worldcom- etc. debacle was the third. There is no end in sight.[6]

System response No. 5: Disinvest in Public Infrastructure (roads, bridges, runnels, airports, wastewater treatment plants).

"Our infrastructure is sliding toward failure and the prospect for any real improvement is grim," says William Henry, president of the American Society of Civil Engineers, releasing the society's 2005 Report Card for America's Infrastructure at a news conference in March.[15] Of course this is a short-sighted policy, but almost by definition the search for decent return on investment focuses on the next quarter, not the next decade or two.

System response No. 6: Expand the Defense Budget

Defense is the only national industrial policy that almost everyone will agree to, or at least acquiesce to, perhaps for fear of being labeled unpatriotic. Foreign enemies are the ultimate consumers of our military preparations, so in the face of flagging demand for toasters and SUVs our economy now arguably requires a growing supply of foreign enemies.[16] As the President himself said shortly after he committed the U.S. to a perpetual war against evil-doers world-wide, "Bring 'em on." War is good business, with future prospects that seem to grow brighter each passing day.

System response No. 7: Cut Taxes for the Wealthy

Cut income taxes, estate taxes, capital gains taxes, and corporate taxes to benefit the wealthiest Americans, shifting more of the tax burden onto the middle class and the working poor.[17]

System response No. 8: Tax Evasion and Tax Cheating.

Both are now rampant and have been the subject of several recent books offering abundant detail. Meanwhile federal authorities turn a blind eye.[18,19]

System response No. 9: Creation of New Industries:

Space exploration, laser-weapons-in-space, casino gambling, the pornography industry, the recreational drug industry (and its conjoined twin, the prison industry) -- all demonstrate America's "can do" entrepreneurial spirit in the face of slowed growth.

System response No. 10: Diminishing Social Investments

Slowed growth requires that the economic pie be divvied up in new ways. Therefore, all social investments have been put on the chopping block -- veterans' benefits, Medicare, Medicaid, Social Security, education loans, Head Start, public lands, water and air quality, charity hospitals, Amtrak, the infrastructure of roads, tunnels, bridges, and entire government agencies (the Internal Revenue Service, the Department of Education, the Department of Health and Human Services, among others) and so on and so forth. There is no end to the proposed cuts. Nothing is sacred except of course Defense (and more recently its domestic twin, Homeland Security) where the bipartisan sense of entitlement to insider gains has developed over decades of exemplary military-industrial cooperation.

Cutting the social safety net has the salutary effect of disciplining the workforce to accept lower wages, longer hours without overtime pay, increased workload on the job, reduced vacations, diminished health, elimination of pensions, and so on. (See System Response No. 12, below.)

As a result of these changes, the main historical difference between the two political parties disappeared at least two decades ago. The Democrats now find, for the first time in living memory, that they have no political agenda of their own. As a result, voter disaffection has risen to historic proportions. Cynicism spreads like kudzu. Political apathy then cements the status quo in place.

System response No. 11: Expanding and Discrediting Government

Given the need to distribute the economic pie in new ways, discrediting government has become a necessary political goal because government has occasionally intervened on behalf of "the little people" against "the big people."

Traditionally, government has made modest attempts to level the playing field for everyone, in keeping with the slogan, "With liberty and justice for all." Without basic economic security for families and individuals, neither liberty nor justice is possible.

To his credit, George W. Bush has provided real innovation here. Previous Republican theorists wanted to shrink government so small you could drown it in a bathtub. Mr. Bush recognized that a large inept government was far more useful that a small government, from the viewpoint of those aiming as a matter of high principle and national necessity to transfer a larger portion of the pie from working people and the middle class to the super rich.

The federal response to Katrina was perfect -- a huge bureaucracy that utterly failed. What better way make people think that government is hopeless, that taxes are a waste? Who wants more of a corrupt, bungling bureaucracy that is indifferent to human suffering? Drowning such a creature in a bathtub seems too kind.

Meanwhile, insiders who know how to work the system -- for example, Halliburton, Raytheon, and Boeing -- are earning record returns, and two important public purposes are thereby fulfilled: rates of return on invested capital are pushed upward, at least for a well-connected few, at the same time government is disgraced and discredited. Voters, dismayed, stay home in droves, so the status quo is doubly secured.

Thanks to this President's extraordinary vision and leadership, it may take decades to restore confidence in government as the leveler of playing fields, if it can be done at all.

System response No. 12: Cut wages for workers.

Over the past 30 years, this has been accomplished in the U.S. by a variety of creative techniques, and it must be considered the centerpiece of the ongoing effort to redistribute the pie, to maintain investors' portions at fair, historical levels or better.[7]

Techniques for cutting wages now include:

a. As labor productivity has increased in recent decades (meaning, more output per person-hour of work), modern owners have simply refused to pass the increased income on to workers in the form of wage increases. This is a new trend of the past 30 years, but unmistakable. Productivity has continued to rise during the past 3 decades (though more slowly than historical average rates), but wages have stagnated and in many cases declined. The owners are simply keeping more for themselves.[20] This approach has both simplicity and transparency to commend it.

b. Keep the minimum wage low, rising at a rate that fails to keep up with inflation. The minimum wage sets the floor beneath all wages, so if it fails to rise with inflation, all wages will tend to stagnate or decline. This has been accomplished through exemplary bipartisan consensus. Congress last raised the minimum wage in 1997 (to $5.15 an hour, an annual income of $10,300).

c. Eliminate existing labor unions and prevent the formation of new unions. Unionized workers earn, on average, 21% more per hour than non-union workers. Perhaps more importantly, organized workers have come to expect somewhat safe and modestly healthful working conditions, a modicum of medical benefits, overtime pay, 2-week paid vacations, and perhaps, in extreme cases, even retirement benefits. When growth is slow and owners are feeling that their return on investment is unfairly pinched, unions are seen as standing in the way of efforts to redistribute the pie upward. So unions must go. It's now so blatant that Human Rights Watch issued a stinging report in 2000 accusing the U.S. of repeated intentional violation of the internationally-recognized human rights of its workers.[21]

d. Eliminate defined benefit pensions, and, in an increasing number of instances, eliminate pensions entirely, as was done recently at United Airlines with the good help of a Reagan-appointed federal judge. Efforts to eliminate pensions entirely are gathering steam, as one would expect if my hypothesis about the bipartisan response to slow growth is correct.[22]

With the average age of the population rising, the reduction or elimination of retirement benefits (such as Medicare, Medicaid, Social Security, and private pensions) may at first blush seem like a political powder keg.[22] Perhaps the thinking among the leaders of both parties is that an elderly, destitute population will remain so frightened and disoriented that it cannot effectively make its political will felt. In any case, efforts to eliminate retirement benefits seem to be proceeding apace and working well. As the man who jumped off the skyscraper said as he fell past the 20th floor, "So far so good."

e. Increasingly, the U.S. workforce has been put into direct competition with low-wage workers in Third World countries. Without strict oversight and enforcement of a kind never yet seen anywhere in the world, this sort of competition inevitably creates a "race to the bottom" for wages, working conditions, and environmental standards simultaneously -- all of which are ways to "externalize" costs of production and thus to move a larger, fairer portion of the pie into the domain of the investor class.

f. Reduce the availability of health insurance. In 2003, 45 million Americans had no health insurance, up 1.4 million from the year before and up 5.1 million from the year 2000.[23]

System response No. 13: Promote rapid technical innovation

Business and government together are constantly searching for "the next big thing," hoping to induce rapid technical innovation. It's the star wars missile defense shield; no, it's biotechnology; no, it's nanotechnology; no, it's really "synthetic biology" -- the creation of entirely new life forms never previously known on planet earth. Of course, by definition, rapid innovation and deployment are incompatible with thoughtful consideration of likely consequences prior to deployment. However, ill-considered deployment has been the norm for 180 years, so it is now thought to be "business as usual" and is easily justified as the price of progress. Rapid innovation churns the economy and creates manifold opportunities for decent return on investment -- particularly during the early stages of a new product or process. It is only later that trouble becomes apparent and profits decline, at which point government typically steps in to pick up the pieces and shield investors from the consequences of their impetuous zeal. (Think Superfund. Think nuclear power.)

Despite official protestations to the contrary, U.S. government policies generally encourage industrial enterprises to "externalize" the costs of their damage to nature and human health, and this trend has accelerated in recent years as economic growth has slowed. The truth is, many industrial operations simply cannot afford to internalize their costs and at the same time provide a decent return, so they MUST externalize their costs. They don't really have a choice, given the pressing need for decent return on investment.

[To be continued next week.]

Peter Montague is editor of the indispensable Rachel's Health and Democracy, where this essay originally appeared. He can be reached at: peter@rachel.org

Notes

[1] Among other sources, see Kevin Phillips, American Theocracy; The Peril and Politics of Radical Religion, Oil, and Borrowed Money. New York: Viking, 2006. ISBN 0-670-03486-X. According to Phillips, roughly 55% of those who voted for Mr. Bush in 2004 believe that the world will end in the battle of Armageddon, as described in the Book of Revelation. As Phillips says (pg. vii), "... the last two presidential elections mark the transformation of the GOP [the Republican Party] into the first religious party in U.S. history." Phillips is a well- known Republican.

[2] Bernstein, Michael A., and David E. Adler. Understanding American Economic Decline. Cambridge: Cambridge University Press, 1994. ISBN 0-521-45679-7.

[3] Bjork, Gordon C. The Way It Worked and Why It Won't; Structural Change and the Slowdown of U.S. Economic Growth. Westport, Conn.: Praeger, 1999. ISBN 0-275-96532-5.

[4] Cohen, Richard and Peter A. Wilson. Superpowers in Economic Decline; U.S. Strategy in the Transcentury Era. N.Y.: Taylor and Francis, 1990. ISBN 0-8448-1625-6.

[5] Mardick, Jeffrey. The End of Affluence; The Causes and Consequences of America's Economic Dilemma. N.Y.: Random House, 1995. ISBN 0-679-43623-5.

[6] Shutt, Harry. The Trouble with Capitalism; An Enquiry into the Causes of Global Economic Failure. London: Zed Books, 1998. ISBN 1-85649-566-3.

[7] Data on our growing inequalities of wealth are available from several sources, but my current favorite is Gar Alperovitz, America Beyond Capitalism; Reclaiming Our wealth, Our Liberty and Our Democracy (Hoboken, N.J.: John Wiley & Sons, Inc., 2005); see pgs. 204-206. See also 6.] Chuck Collins and Felice Yeskel, Economic Apartheid in America (New York: New Press, 2000) with revised and corrected data <http://www.ufenet.org/research/Economic_Apartheid_Data.html#p55>available here. See also, for example, Edward N. Wolff, Top Heavy; the Increasing Inequality of Wealth in American and What Can Be Done About It (New York: The New Press, 2002). Another excellent book is Michael Zweig's, The Working Class Majority; America's Best Kept Secret (Ithaca, N.Y.: Cornell University Press, 2000); ISBN 0-8014-3637-0.

[8] "EPA Revises Regulatory Reviews To Discount Long-Term Benefits," Inside EPA, October 8, 2004.

[9] Floyd Norris, "Too Much Capital: Why It Is Getting Harder to Find a Good Investment," New York Times March 26, 2005, pg. C1.

[10] Peter M. Vitousek, and others. "Human Appropriation of the Products of Photosynthesis," Bioscience Vol. 36 No. 6 (June, 1986), pgs. 368- 373. Available here.

[11] Peter M. Vitousek and others, "Human Domination of Earth's Ecosystems," Science Vol. 277 (July 25, 1997), pgs. 494-499; available <http://www.rachel.org/library/getfile.cfm?ID=200>here. And see Jane Lubchenco, "Entering the Century of the Environment: A New Social Contract for Science," Science Vol. 279 (Jan. 23, 1998), pgs. 491-497, available here.

[12] Gretchen Morgenson, "After the Debt Feast Comes the Heartburn," New York Times Nov. 27, 2005, pg. 3-1.

[13] See Kevin Phillips, American Theocracy; The Peril and Politics of Radical Religion, Oil, and Borrowed Money. New York: Viking, 2006. ISBN 0-670-03486-X. See Part III, "Borrowed Prosperity," pgs. 265-387.

[14] www.precaution.org/lib/06/prn_generation_of_debtors.060523.htm

[15] "Crumbling Infrastructure Erodes Quality of Life in U.S.," Environment News Service March 10, 2005.

[16] William Rivers Pitt, "The Thing We Don't Talk About," Truthout.org June 23, 2005.

[17] Robert Johnson, "Little Dogs Don't Pay Taxes," New York Times, August 1, 2004, Sunday Business Section, pg. 2.

[18] Donald Barlett and James B. Steele, America: Who really Pays the Taxes? (New York: Touchstone, 1994; ISBN 0-671-87157-9).

[19] Donald Barlett and James B. Steele, The Great American Tax Dodge; How Spiraling Fraud and Avoidance Are Killing Fairness, Destroying the Income Tax, and Costing You (Berkeley, Calif: University of California Press, 2002; ISBN 0520236106).

[20] Economic Policy Institute, The State of Working America 2004/2005, September 5, 2004.

[21] Lance Compa, Unfair Advantage; Workers' Freedom of Association in the United States Under International Human Rights Standards (New York: Human Rights Watch, August 2000). ISBN 1-56432-251-3.

[22] See, for example, Eduardo Porter and Mary Williams Walsh, "Benefits Go the Way of Pensions," New York Times February 9, 2006; and see Mary Williams Walsh, "The Nation: When Your Pension is Frozen," New York Times January 22, 2006; and Mary Williams Walsh, "Whoops! There Goes Another Pension Plan" New York Times, September 18, 2005, pg. 3-1; and Mary Williams Walsh, "How Wall Street Wrecked United's Pension," New York Times July 31, 2005, pg. 3-1.

[23] Robert Pear, "Health Leaders Seek Consensus Over Uninsured," New York Times May 29, 2005, pg. A1.






 


 

 

 

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