The Slow Death of Neoliberalism: Part 4C Conclusion

Part 1.
Part 2.
Part 3.
Part 3A. This post at Naked Capitalism expands on Part 3, and adds a discussion of Simcha Barkai’s paper and methodology; I discuss other aspects in Part 4A.
Part 4A.
Part 4B.

It’s fairly easy to criticize neoliberalism from the inside, just based on its incoherence and its failure to deliver good outcomes to most of us. The Barkai Paper discussed in parts 3A and 3A, and the Paradise Papers and the Panama Papers make it obvious that the benefits of neoliberalism flow to the wealthy at the expense of the rest of us, whose wages are largely stagnant and have been for decades, and whose share of overall wealth has fallen.

Neoliberalism can also be criticized from the outside as a form of capitalism, and that seems to me to be more revealing. The constricted logic of capitalism leads directly to domination by the few in business and society generally. The logic that pushes towards dominance is the result of the nature of reason as it has evolved since the Enlightenment. I’ve discussed similar descriptions of the drive to domination in Polanyi, Arendt and to a lesser extent Veblen; click name above to visit my author page. My recent discussions of these points based on my first readings in Critical Theory can be found here, here, and here.

The members of the Frankfurt School were trained in classical German thought, including Hegel, Kant, and Marx. Initially they accepted Marx’ theory of an inherent contradiction in capitalism: that the rich would accumulate all the money and impoverish the workers, who would rise up and lead the revolution. That didn’t happen. Instead, the drive to domination was restrained by legislation. The majority’s insistence on restraints was so strong that the Supreme Court, that playground of the elites, was forced to allow the legislation to stand. But the scholars of the Frankfurt School knew that the drive to domination didn’t disappear. Today it’s just as strong as it was in the late 19th Century.

The natural logic of capitalism is gigantism. Marx said that in unrestrained capital, smaller businesses will be swallowed up by larger businesses, and he was right, as we see today. Organizations with massive capital wield enormous power, and can easily take over control of a society. We see the beginnings of all this today. There is a long tradition in the US of distrust of large piles of money and the people who control them, a sentiment that drove the progressive movement of the late 19th Century. That doesn’t disappear accidentally. It requires an external force to change it. I wouldn’t say it has disappeared today, but far too many of us have lost that natural distrust.

Somehow many people think billionaires as just like the rest of us. They aren’t, and the vulgar braggart in the White House is a perfect exemplar. But far too many of us are willing to accept rule by the rich. One of the central influences that led to this sorry situation is the Law and Economics movement, with its single-minded focus on economic efficiency. Economic efficiency: who could object that? Of course we should be efficient.

Once courts decided that the most important part of justice is insuring economic efficiency, they began to eat away at the laws and theories that enabled the majority to control the rich and powerful. Ideals like the importance of fairness, or social equality, or recognizing and correcting power imbalances through legislation, withered and vanished. Gradually we lost the ability to govern by majority rule. Our Supreme Court feels no compunction in overruling the will of the majority on health care, on voting rights, even on actual elections.

That is the result of the same kind of logic that drives capitalism, the logic of economic efficiency applied to every area of life. A somewhat simple idea that might be useful in limited settings becomes the overall mindset, the formula for decision-making that jumps from the tiny number of cases in which it might be a useful to the absurd idea that it works in every area of law.

It would be interesting to see a history of the erosion of the Securities Laws beginning under Reagan and his hit-man SEC Chair John Shad, followed by mildly limiting legislation, which the courts expanded to cut way back on the ability of the regulator to regulate, and the investor to sue. The Supreme Court bought into Posner’s principle, and then expanded it beyond recognition.

Friedrich Pollock, a member of the Frankfurt School, said that the profit motive has always been a form of the power motive. It just gets dressed up in fancy reductive logic by the likes of Posner and Bork for public consumption. Regardless of their motives, they are no different from Frank Luntz, who uses the tools of rhetoric to hide the ugly transformations sought by the rich.

All these changes start small, and require something that seems like a justification, but eventually, it’s just the whim of the elites. That’s how Trump acts, and that’s how the more effective members of his cabinet and his other appointees act. Rex Tillerson is destroying our capacity to engage in diplomacy. Scott Pruitt is destroying our ability to protect ourselves from climate change and pollution. Jeff Sessions is wrecking the Justice Department. All this was foreshadowed by the destruction of the SEC under Shad.

When government is dismantled, how does a society work? The rich take over and run things according to their fancies.

That’s the logic of capitalism. Control the capitalists or they controls you.

Notre Dame undergrad (math); JD, Indiana University at Bloomington; 1st Lieutenant, US Army.; private practice in corporate and securities law; Assistant AG in Tennessee for consumer protection and securities; Blue Sky Securities Commissioner, Tennessee; private practice, bankruptcy and corporate law.

I have had a lifelong interest in economics. For most of my career, that interest was practical, focused on the problems in front of me. Lately I have been more interested in economics as a theory, especially its impact on the lives of people like those I met in my bankruptcy practice, and on the politics of money in the US. I also enjoy reading philosophers, starting in college and steadily expanding my reading ever since. I wrote at FireDogLake for a number of years.

Generally, I think the problem facing the US is the dominance of neoliberal discourse. I think it clouds the vision, and limits the kinds of problems that can be identified and solved. For example, the existence and danger of climate change can easily be identified in a scientific discussion. However, the problem does not fit the neoliberal discourse because science insists that the pursuit of individual and corporate self-interest will lead to devastation. In neoliberal discourse, the pursuit of self-interest always leads to Eden.

The neoliberal project has two prongs. One is the police function of crushing dissent and alternative views. The police function is provided by government agencies and private and institutional actors. The counterpart is the economic system , which is operated by government and by private and institutional actors. Some of these actors operate in both spheres. I focus on the second prong.

The Slow Death of Neoliberalism: Part 4B

Part 1.
Part 2.
Part 3.
Part 3A. This post at Naked Capitalism expands on Part 3, and adds a discussion of Simcha Barkai’s paper and methodology; I discuss other aspects in Part 4A.
Part 4A.

In Part 4A, I laid out the neoliberal theory of the person, and the beginning of an appraisal of the effect of that theory on elites. In this post I add to that appraisal, and take up the impact of this theory on the rest of us. In the next post I will offer a possible explanatory context, but not a solution.

The neoliberal theory of the person is the basis of the economics most of the elites learn as undergrads, and in business schools. Lawyers are taught neoliberal principles in anti-trust classes and in the jurisprudential aspects of other courses, through the impact of the law and economics movement. When elites get jobs in business or law or government, they are surrounded by others who are deeply enmeshed in neoliberalism, even if they can’t name it. They believe that the market, whatever that is, is a wonderful, if occasionally erratic, judge of worth. They earn what they make because the market rewards the productive, and everyone finds their level in that system of rewards, based on their personal merit and their productivity. As they rise in pay and prestige, that opinion is cemented. It’s like Calvinism, with the market substituted for the Almighty. And if the market rewards the productive and dumps on the “non-productive”, then that is right and just.

The farther elites get from the productive work of businesses, the more they come to regard employees as cogs in a machine, not fully human, merely factors of production. The ease with which they fire people is the result of their belief that elites are productive and the rest tools. Lawyers and politicians may see their employees as humans, if weak versions, but the rest of the working world vanishes, except when needed. In brief, the elites operationalize Karl Polanyi’s concept of labor as a fictitious commodity.

And how does this work out for the lesser people? They are forced to live and work in the neoliberal world. They learn to repeat its tropes. For a beautiful piece of research on this, see Coming Up Short: Working-Class Adulthood in an Age of Uncertainty, 2015, by Jennifer M. Silva, The people Silva interviewed describe themselves in the terms in the Mirowski quote in Part 4A, as bundles of skill sets, who must take risks and invest in themselves to get ahead; when it doesn’t work, they think it’s their fault, they blame themselves, and they struggle to find some other way forward.

I saw this many times in my 25 years of bankruptcy practice. People who file Chapter 7 always blamed themselves, and never could understand how their failures resulted from the cruel form of capitalism we enjoy in the US. Here’s a composite case. A young couple with two low-level jobs in a county near Nashville decide that the husband will go back to school so he can get a better job. The wife gets pregnant, suffers a bad miscarriage and can’t go on working. They don’t have insurance, and the bills pile up. He drops out to get a job to support them and tries to pay down the debt. She gets well enough to work, and then he loses his job. They can’t pay the medical and student debt. They get money from family, but it doesn’t work. They file Chapter 7, but they can’t discharge the student debt and they feel obligated to pay back their families. And when we talk to them, they blame themselves in words and phrases exactly like those Silva reports in her book.

In Part 4A, I describe two of the prevalent ideas that neoliberalism has given us, Bork’s antitrust revisionism and Posner’s Law and Economics. For the elites, the first was a boon. It was easy to explain how the markets would protect consumers after a merger. Corporations became larger and larger. Regulators allowed almost every merger, and the elites became more and more powerful, with more and more assets under their control. Combine the new wealth and power with their belief that they are superior, as shown by the rewards heaped on them by the all-knowing market, and suddenly elites are exerting even greater control over the government and using it to enrich themselves as managers and shareholders. According to Mirowski, this is a desired outcome of neoliberalism. See, e.g. point 10.

The Law and Economics movement supports this view. Courts following Posner look at economic efficiency above any other interest, and interpret the laws narrowly so as not to interfere with the sacred market. The consistent rulings in their favor support elites in thinking they are wonderful.

After the Great Crash, brought on by elites at gigantic banks, hedge funds, big law firms and other cheats and liars, not a single member of the elites went to jail, and they all got paid, and they all got to keep their ill-gotten gains. Many of the political elites defended their Wall Street friends. Pundits and academics and think-tankers sprang to the defense of Wall Street. Both of these groups pretended that it was everybody’s fault, or the fault of those evil subprime borrowers or nobody’s fault because it was all perfectly legal and the deals were between equally sophisticated and brilliant people, but it surely wasn’t the fault of the well-known people who organized and sold RMBSs and other deals. The prosecutors said they couldn’t indict any individual because responsibility was spread out among lots of people, or it was too hard to get a conviction, or because something something. When elites are not held accountable, it reinforces their sense of how wonderful they are.

But the effect of these two two neoliberal theories on the rest of us is bad. As I note in Part 4A, based on this paper by Simcha Barkai, increasing concentration is perhaps the most important cause of the wage-productivity gap. Wage stagnation as profits increased has left workers struggling to get ahead, to the point that less than half of US households can pay an unexpected $500 bill without borrowing or selling something.

In the same way, the law and economics movement has hurt workers. For example, Banks and other large corporations put arbitration clauses in all their contracts, and clauses that bar class actions, and courts routinely uphold these clauses, because it’s so efficient. That means that when you get cheated in one of Wells Fargo’s schemes, you have to arbitrate, and class actions are barred.

So far, the legacy political parties and the elites have been able to deflect the anger that is slowly building up in our society as frustration turns into pain. It’s dawning on all of us that the way we treat our people is disgusting, whether it’s cops killing unarmed Black people, sexual predators attacking women, unfair pay for people of color, massive corruption, lawsuits with utterly unjust results; the list is endless.

My prediction of the slow death of neoliberalism is based on my profound hope that people are realizing that neoliberalism is a nightmarish theory, the spell will be broken, and people will demand to be treated like human beings with natural rights that must be the central focus of social organization.

Notre Dame undergrad (math); JD, Indiana University at Bloomington; 1st Lieutenant, US Army.; private practice in corporate and securities law; Assistant AG in Tennessee for consumer protection and securities; Blue Sky Securities Commissioner, Tennessee; private practice, bankruptcy and corporate law.

I have had a lifelong interest in economics. For most of my career, that interest was practical, focused on the problems in front of me. Lately I have been more interested in economics as a theory, especially its impact on the lives of people like those I met in my bankruptcy practice, and on the politics of money in the US. I also enjoy reading philosophers, starting in college and steadily expanding my reading ever since. I wrote at FireDogLake for a number of years.

Generally, I think the problem facing the US is the dominance of neoliberal discourse. I think it clouds the vision, and limits the kinds of problems that can be identified and solved. For example, the existence and danger of climate change can easily be identified in a scientific discussion. However, the problem does not fit the neoliberal discourse because science insists that the pursuit of individual and corporate self-interest will lead to devastation. In neoliberal discourse, the pursuit of self-interest always leads to Eden.

The neoliberal project has two prongs. One is the police function of crushing dissent and alternative views. The police function is provided by government agencies and private and institutional actors. The counterpart is the economic system , which is operated by government and by private and institutional actors. Some of these actors operate in both spheres. I focus on the second prong.

[Photo: Annie Spratt via Unsplash]

The Slow Death of Neoliberalism: Part 4A The Nature of the Person

Part 1.
Part 2.
Part 3.
Part 3A. This post at Naked Capitalism expands on Part 3, and adds a discussion of Simcha Barkai’s paper and methodology; I discuss other aspects below.

In this post, I take up the nature of the person in neoliberal theory and neoliberal society. I begin by describing the nature of the person in theory, and then apply it to elites. In a separate post I will discuss the nature of the average person in neoliberal theory and society. Then I will try to put this in a general context, based on my initial readings on Critical Theory.

The nature of the person in a neoliberal society is simple: a utility-maximizing computing machine, only interested in satisfying wants and needs in a world of scarce resources, where survival depends on the ability to grab stuff ahead of other people. Somewhat more elegantly, Philip Mirowski explains it this way

Neoliberalism thoroughly revises what it means to be a human person. Classical liberalism identified “labor” as the critical original human infusion that both created and justified private property. Foucault correctly identifies the concept of “human capital” as the signal neoliberal departure that undermines centuries of political thought that parlayed humanism into stories of natural rights. Not only does neoliberalism deconstruct any special status for human labor, but it lays waste to older distinctions between production and consumption rooted in the labor theory of value, and reduces the human being to an arbitrary bundle of “investments,” skill sets, temporary alliances (family, sex, race), and fungible body parts. “Government of the self ” becomes the taproot of all social order, even though the identity of the self evanesces under the pressure of continual prosthetic tinkering; this is one possible way to understand the concept of “biopower.” Under this regime, the individual displays no necessary continuity from one “decision” to the next. The manager of You becomes the new ghost in the machine.

Mirowski could be describing corporations: they are in fact the Platonic Ideal of this version of human nature. They have only one goal: to succeed in the market, whatever that is, by grabbing everything they can, money, power, resources, everything. We should all aspire to be like corporations.

In the neoliberal universe, the market, whatever that is, is the perfect computer. It balances all desires with money and spits out the perfect answer. The market can do no wrong. It disciplines everyone to its demands. There is no need for external government oriented regulation. Any regulation will simply make everything worse. In fact, there is no need for or room for democratic control of any kind. The market also selects our leaders, as Thorstein Veblen observed over a century ago.

We’ve been living under this intellectual regime for half a century now, and we can see its impact all around us. On the corporate side let’s look at two of the main theoretical innovations, Robert Bork’s antitrust revisions and Richard Posner’s Law and Economics movement.

As far back as 1960, Bork was fretting that socialism would be enforced on the US through antitrust law. In his seminal 1978 book, The Antitrust Paradox, he claimed that the purpose of the Sherman Act, the crucial antitrust law, was to protect consumer welfare, and that the existing law protected inefficient firms and thus drove up consumer prices. That view was adopted by the Supreme Court in 1979. Supposedly it would protect consumers better than prior law focused on the dangers of concentrated money and power.

A recent paper by Simcha Barkai shows how that worked out. Barkai is now a professor at the London School of Economics. His paper, Declining Labor and Capital Shares, is here. The first two sections and the conclusion lay out the thesis in English, not econspeak. The labor share is declining. The cost of capital is low and little additional capital has not been added to the existing depreciating stock, so the capital share is low. Profits are up in an amount sufficient to cover both drops. The profit share has risen because of increased concentration, which occurred because of the adoption of Bork’s opinion. See Part 3A, Observations.

Across specifications, the profit share (equal to the ratio of profits to gross value added) has increased by more than 12 percentage points. To offer a sense of magnitude, the value of this increase in profits amounts to over $1.1 trillion in 2014, or $14 thousand for each of the approximately 81 million employees of the non-financial corporate sector. P. 3.

Profits go to the owners of firms, who distribute the money as they see fit. Profits are not distributed to the 99%; they go to shareholders and top management. This is terrible for consumers, whose wages have stagnated while profits soar. Bork was totally wrong, and wrong in ways that hurt people and society.

The second neoliberal innovation is the Law and Economics Movement, driven by Richard Posner, recently retired from the Seventh Circuit. This is from a 1987 speech he gave at the American Economic Association, behind pay-wall but available through your local library. According to Posner, these are the basic premises of Law and Economics:

1) People act as rational maximizers of their satisfactions in making such nonmarket decisions as whether to marry or divorce, commit or refrain from committing crimes, make an arrest, litigate or settle a lawsuit, drive a car carefully or carelessly, pollute (a nonmarket activity because pollution is not traded in the market), refuse to associate with people of a different race, fix a mandatory retirement age for employees.

2) Rules of law operate to impose prices on (sometimes subsidize) these nonmarket activities, thereby altering the amount or character of the activity.

A third premise, discussed at greater length later, guides some research in the economics of nonmarket law:

3) Common law, (i.e., judge-made) rules are often best explained as efforts, whether or not conscious, to bring about either Pareto or Kaldor-Hicks efficient outcomes. P. 5

You can find my discussion of Kaldor-Hicks efficiency here, with a link to a discussion of Pareto Efficiency. Posner is quite serious about this.

/

This is from [Posner’s] 1985 article in the Columbia Law Review, An Economic Theory of the Criminal Law:

My analysis can be summarized in the following propositions:
1. The major function of criminal law in a capitalist society is to prevent people from bypassing the system of voluntary, compensated exchange-the “market,” explicit or implicit-in situations where, because transaction costs are low, the market is a more efficient method of allocating resources than forced exchange. Market bypassing in such situations is inefficient — in the sense in which economists equate efficiency with wealth maximization — no matter how much utility it may confer on the offender. … (P. 1195, footnote omitted)

Posner carefully explains how this works with rape. I’m sure Weinstein, O’Reilly and all of the sexual predators heartily endorse his conclusions. It’s just sick to think in terms of the utility these predators gain balanced against the “disutility” to the people they attack. In Kaldor-Hicks terms, the predator can make everything right with a few bucks and/or a part in a movie, and Posner would be fine with that.

This analysis is explicitly inhuman: it takes no account of human dignity, or bodily autonomy and personhood of people under assault. The disutility caused by rich predators? What kind of person thinks like that?

To be precise, that is the exact mindset that neoliberalism calls out. That focus on economic efficiency defined in the most dehumanizing terms possible is at the core of the education of the elites and it perfectly explains their behavior in their institutional roles. All of them are sure they are perfection of humanity because they were selected by the perfect market. And it is therefore right and just that they should be in charge of everything. Screw democracy; as Posner put it in a 2007 opinion, the value of voting to the individual is elusive.

Notre Dame undergrad (math); JD, Indiana University at Bloomington; 1st Lieutenant, US Army.; private practice in corporate and securities law; Assistant AG in Tennessee for consumer protection and securities; Blue Sky Securities Commissioner, Tennessee; private practice, bankruptcy and corporate law.

I have had a lifelong interest in economics. For most of my career, that interest was practical, focused on the problems in front of me. Lately I have been more interested in economics as a theory, especially its impact on the lives of people like those I met in my bankruptcy practice, and on the politics of money in the US. I also enjoy reading philosophers, starting in college and steadily expanding my reading ever since. I wrote at FireDogLake for a number of years.

Generally, I think the problem facing the US is the dominance of neoliberal discourse. I think it clouds the vision, and limits the kinds of problems that can be identified and solved. For example, the existence and danger of climate change can easily be identified in a scientific discussion. However, the problem does not fit the neoliberal discourse because science insists that the pursuit of individual and corporate self-interest will lead to devastation. In neoliberal discourse, the pursuit of self-interest always leads to Eden.

The neoliberal project has two prongs. One is the police function of crushing dissent and alternative views. The police function is provided by government agencies and private and institutional actors. The counterpart is the economic system , which is operated by government and by private and institutional actors. Some of these actors operate in both spheres. I focus on the second prong.

What Becomes Of The Brokenhearted Dems And Clickbait Complicit Media Who Got Us Here?

Will Rogers very famously said:

“I am not a member of any organized political party. I am a Democrat.”

That was made sometime in the 1930’s I think, but it is enduringly true.

So, where will the Democratic party go now that they have had their ass handed to them by Trump? Who will lead the Democratic party going forward?

The calls are already ringing out. Liz Warren! Bernie Sanders! Keith Ellison (Sanders has even issued an email ask as to Ellison)! But there is a serious money people and Clintonian push for Howard Dean. Which is truly mind numbing.

Howard Dean is moldy cheese that needs to be taken out with the next non-recycle trash dump. He did neither himself, nor the party, any favors in the 2016 election clownshow cycle. Seriously, in the 2016 election cycle, Sarah Palin may have been more reserved and credible than Howard Dean.

Dean’s 50 state op got Obama elected in 2008, but he is smelly garbage now. Screw this always retread manure. Dean needs to dry up and go away.

And the Democratic Party needs to extricate their head from their ass and move to the future.

New blood. Dems CANNOT be the same old constantly revanchist assholes every time they lose bigly. And, boy did they lose bigly.

The Dem go to kleptomaniacs like Debbie Wasserman Schultz and Rahm Emanuel not only did not help the party expand but set it back in serious ways in places like MO, KS, AZ and the entire United States.

And, while we are at it, the high holy “Senator Professor Warren” ain’t immune either. She had a moment and a shot, and she cowardly whiffed. Maybe it is something she just truly did not want, and, if so, fine. But don’t tell me that someone that is little more than a year younger than Hillary, and who consciously forfeited both her, and Bernie’s, shot in 2016, will be the Democratic holy savior in 2020.

Don’t do that. This is the same ignorant reset idiocy that got Democrats here today. That time is done. If Democrats do one thing ever, it ought be to build the bridge for the young’s of the United States to clean up the shithole we left them. Liz Warren and Bernie Sanders can be a huge part in doing that. But only as bridge builders, not as the man or woman who will be the avatar in 2020. We need them terribly, but not themselves as the embodiment of the future. That kind of thinking is the idiocy of the past.

There is a future. Although CNN’s Jeff Zucker and Trump/Breitbartism’s Steve Bannon are brothers in clickbait cuck arms that birthed, literally, President Trump, and will not easily give up their money raking news cycles.

The “new normal” is that CNN, MSNBC, NBC, CBS, ABC, New York Times, Washington Post, and an endless roll call of dying, wimpering subservient media jackasses, who rode Trump’s clickbait train to a place in hell, will find it’s new Stockholm Syndromed place and start lecturing us how it is all good and just a “function of normal democracy”. It is already occurring, just watch any Wolf Blitzer on CNN or Chris Matthews on MSNBC moment. They are getting climax happy legs on Trump and Giuliani fascism as we speak.

That is one vision, and the early reality, of what the “press” will do in the coming Trump Presidency. The competing vision, which is what I hope and ascribe to, is that the media extricates their heads from their asses and brings real scrutiny to try to mitigate the hell they helped gestate. Are there enough Brian Stelters and Jay Rosens to get us there?

The brokenhearted Dems have some serious soul searching to engage in. So do the currently unapologetic and furiously rationalizing media and “pundits” who so helped get us here.

“Balanced” is NOT fair. Honest is fair. Accurate is fair. Truth is fair. Putting on panels of bickering loud mouthed bought and paid for political assholes as “news coverage” is NOT fair. Nor is it “balanced” news. Jeff Zucker makes Roger Goodell look like a piker in terms of the pantheon of American assholes.

While the media, especially cable, has a circle jerk field day congratulating themselves over their “wall to wall coverage”, and “looking forward to the transition”, just remember how the Trumpism and fascism germinated. Not shockingly, it germinated the same way it always has. When the gatekeepers of a rational society become more about themselves and their money than their jobs representing society.

There is a lesson here, too, for the Dems in media interaction. You got played and hosed royally. Don’t be the brokenhearted, be the, for once, party that learns from its mistakes and failures, and does better.

Just once, do this. If you can.

UPDATE: Commenter GK James posted something below that I think crystallizes much of what I was trying to say far better than I did, even if from a slightly different perspective.

Sure, but doesn’t that effectively absolve the demos that does the choosing? Aren’t Democrats up against a larger problem, one that they’ve had to wrestle with since Reagan? How do you advocate a progressive worldview when the majority of an aging, increasingly atomized, entertainment-addicted population doesn’t want that? It’s easy enough to say, after the fact, that Clinton should have focused more on those disadvantaged by globalization, or that, had they only chosen Sanders, the Democrats would have won. But recall that, without moving to the center, Bill Clinton would never have made it. A lousy bargain in retrospect, but not a crazy one at the time.

Yes, the DNC needs new blood. But assuming someone is found who can articulate a crisp clear message of what Democrats stand for—and who’s telegenic, personable, and entertaining to boot—how would that change the stranglehold that Republicans have on state governments, state legislatures, and the US Congress? The clear majority likes the status quo, having no problem with gerrymandered districts, voter suppression, or bought-and-paid-for legislators who enjoy an incumbency rate of 90%+. And the infotainment complex is likely to help keep it that way by making sure that its customers are never overtaxed by complicated thoughts. There will still be people, adults, who read, think, and have constructive ideas about matters of public import, which they’ll express in complete sentences. But they’ll be increasingly outnumbered and marginalized in a Twittered world.

Can’t argue with that, and don’t know the answers to the questions. But the Democratic party, if it is to continue (and I think it must), has to start finding those answers quickly.

Bmaz is a rather large saguaro cactus in the Southwestern Sonoran desert. A lover of the Constitution, law, family, sports, food and spirits. As you might imagine, a bit prickly occasionally. Bmaz has attended all three state universities in Arizona, with both undergraduate and graduate degrees from Arizona State University, and with significant post-graduate work (in physics and organic chemistry, go figure) at both the University of Colorado in Boulder and the University of Arizona. Married, with both a lovely child and a giant Sasquatch dog. Bmaz has been a participant on the internet since the early 2000’s, including active participation in the precursor to Emptywheel, The Next Hurrah. Formally joined the Emptywheel blog as an original contributing member at its founding in 2007. Bmaz grew up around politics, education, sports and, most significantly, cars; notably around Formula One racing and Concours de Elegance automobile restoration and showing. Currently lives in the Cactus Patch with his lovely wife and beast of a dog, and practices both criminal and civil trial law.

In Latest Russian Plot, WikiLeaks Reveals Hillary Opposes ISDS

Among the emails released as part of the Podesta leaks yesterday, WikiLeaks released this one showing that, almost a year before she was making the same argument in debates with Bernie Sanders, Hillary was opposed to Investor State Dispute Settlement that is part of the Trans Pacific Partnership. (h/t Matt Stoller) ISDS is the means by which corporations have used trade agreements to operate above the domestic laws of party countries (if you haven’t read this three part series from BuzzFeed to learn about the more exotic ways business are profiting off of ISDS).

The email also appears to echo her later public concern that she had changed her mind on TPP because of KORUS.

After our last talk with HRC, we revised our letter to oppose ISDS and include her caution about South Korea.

Sure, other Podesta emails show Hillary supporting a broad region of free trade (and labor) in the Americas. But this more recent email confirms that the views she expressed in debate were more than just an attempt to counter Bernie’s anti-trade platform.

Whether or not this is newsworthy enough to justify the WL dump, it is noteworthy in light of NYT’s rather bizarre article from some weeks back suggesting that WL always sides with Putin’s goals. As I noted, the article made a really strained effort to claim that WL exposed TPP materials because it served Putin’s interests. Now, here, WL is is releasing information that makes Hillary look better on precisely that issue.

That doesn’t advance the presumed narrative of helping Trump defeat Hillary!

Then, as I noted yesterday, in spite of all the huff and puff from Kurt Eichenwald, the release of a Sid Blumenthal email used by Trump is another case where the WL release, as released, doesn’t feed the presumed goals of Putin.

Which brings me to this Shane Harris piece, which describes four different NatSec sources revealing there’s still a good deal of debate about WL’s ties to Russia.

Military and intelligence officials are convinced that WikiLeaks is an ongoing threat to U.S. national security and privacy owing to its leaks of classified documents and emails. But its precise relationship with Russia has been a subject of internal debate. Some do see the group as being in cahoots with the Kremlin. But others find that WikiLeaks is acting mainly as the beneficiary of stolen documents, not unlike a journalistic organization.

There are some funny aspects to this story. Nothing in it considers the significant evidence that WL is (and has reason to be) affirmatively anti-Hillary, which means its interests may align with Russia, even if it doesn’t take orders from Russia.

It also suggests that if the spooks can prove some tie between WL and Russia, they can spy on it as an agent of foreign power.

But those facts don’t mean WikiLeaks isn’t acting at Russia’s behest. And that’s not a trivial matter. If the United States were to determine that WikiLeaks is an agent of a foreign power, as defined in U.S. law, it could allow intelligence and law enforcement agencies to spy on the group—as they do on the Russian government. The U.S. can also bring criminal charges against foreign agents.

WL has been intimately involved in two separate charges cases of leaking-as-espionage in the US, Chelsea Manning and Edward Snowden. The government has repeatedly told courts that it has National Security/Criminal investigations, plural, into WikiLeaks, and when pressed for details about how and whether the government is collecting on supporters and readers of WikiLeaks, the government has in part hidden those details under a b3 FOIA exemption, meaning a statute prevents disclosing it, while extraordinarily refusing to reveal what statute that is. We certainly know that FBI has used multiple informants to spy on WL and used a variety of collection methods against Jacob Appelbaum, including (according to Appelbaum) physical tails.

So there’s not only no doubt that the US government believes it can spy on WikiLeaks (which is, after all, headed by a foreigner and not a US organization), but that it already does, and has been doing for at least six years.

Perhaps Harris’ sources really mean they’ve never found a way to indict Julian Assange before, but if they can claim he’s working for Putin, then maybe they’ll overcome past problems of indicting him because it would criminalize journalism. If that’s the case, it may be shading analysis of WL, because the government would badly like a reason to shut down WL (as the comments about the direct threat to the US in the story back up).

As I’ve said before, the role of WL in this and prior leak events is a pretty complex one, one that if approached too rashly (or too sloppily) could have ramifications for other publishers. While a lot of people are rushing to collapse this (in spite of what sounds like a continuing absence of directly incriminating evidence) into a nation-state conflict, things like this TPP email suggest it’s not that simple.

Marcy Wheeler is an independent journalist writing about national security and civil liberties. She writes as emptywheel at her eponymous blog, publishes at outlets including Vice, Motherboard, the Nation, the Atlantic, Al Jazeera, and appears frequently on television and radio. She is the author of Anatomy of Deceit, a primer on the CIA leak investigation, and liveblogged the Scooter Libby trial.

Marcy has a PhD from the University of Michigan, where she researched the “feuilleton,” a short conversational newspaper form that has proven important in times of heightened censorship. Before and after her time in academics, Marcy provided documentation consulting for corporations in the auto, tech, and energy industries. She lives with her spouse in Grand Rapids, MI.

9/11: A Story of Attacks, Horror, Victims, Heroes and Jingoistic Shame

screen-shot-2016-09-11-at-2-54-38-amSeptember 11, 2001 is now 15 years in the mirror of life. Like the two Kennedy assassinations, the Moonshot and a few other events in life, it is one of those “yeah I remember where I was when…” moments. Personally, being on west coast time, I was just waking up thinking all I had was a normal morning court calendar. When my wife, who gets up far earlier than I, shouted at me to rub out the cobwebs and watch the TV because something was seriously wrong in New York City. She was right. It was a hell of a day, one of unspeakable tragedy and indescribable heroism. It was truly all there in one compact day, unlike any other, save maybe December 7, 1941.

2,996 people lost their lives, and their families and history were forever altered in the course of hours on an otherwise clear and beautiful day in Manhattan. Most were simply innocent victims, but many were the epitome of heroes who charged into a hellscape to try to salvage any life they could. There were other heroes that altered their lives in response, and either died or were forever changed as a result. One was a friend of mine from South Tempe, Pat Tillman.

No one can speak for Pat Tillman, and, save for his family, those who claim to only prove they never met the man. All I can say is, I wish he were here today. The one thing that is certain is he would not give the prepackaged trite partisan reaches you are likely to hear today. It would be unfiltered truth. Which the US did not get from its leaders after September 11, 2001, and is still missing today.

Instead of rallying and solidifying the oneness of the American citizenry that was extant immediately after September 11, 2001, the Bush/Cheney Administration and GOP told us to go shopping and that we needed to invade Iraq, who had nothing whatsoever to do with 9/11. It was a fools, if not devil’s, errand and a move that threw away an opportunity for greatness from the country and exploited it in favor of war crimes and raw political power expansion and consolidation.

Instead of gelling the United States to make ourselves better as the “Greatest Generation” did sixty years before, America was wholesale sold a bill of goods by a determined group of unreformed and craven Neo-Con war criminals left over from the Vietnam era, and we were led down the path to a war of aggression that was an unmitigated disaster we have not only not recovered from today, but are still compounding.

The 2000’s will prove to be a decade of American shame when history is written decades from now. Not from the attacks, but from our craven response thereto. So, pardon me if I join Colin Kaepernick and choose not to join, every Sunday, just because the Madison Avenue revenue generating NFL of Roger Goodell cravenly exploits it, the jingoistic bullshit of rote dedication to a racist National Anthem. Also, too, shame on opportunistic and Constitutionally ignorant whiny police unions who scold free speech and threaten to abandon their jobs in the face of it.

powell_un_anthraxBut that is all over now surely. Taking the United States, nee the world, to a forever war on the wings of a craven lie is universally recognized, condemned and scorned, right?

No. The Neo-Cons are unrepentant and still trying to advance themselves on the lie that their once and forever war justifies more than their prosecution and conviction in The Hague. Here is a belligerent and unrepentant Dick Cheney passing the torch of evil to his spawn Liz Cheney in the august pages of the Wall Street Journal:

We are no longer interrogating terrorists in part because we are no longer capturing terrorists. Since taking office, the president has recklessly pursued his objective of closing the detention facility at Guantanamo by releasing current detainees—regardless of the likelihood they will return to the field of battle against us. Until recently, the head of recruitment for ISIS in Afghanistan and Pakistan was a former Guantanamo detainee, as is one of al Qaeda’s most senior leaders in the Arabian Peninsula.

As he released terrorists to return to the field of battle, Mr. Obama was simultaneously withdrawing American forces from Iraq and Afghanistan. He calls this policy “ending wars.” Most reasonable people recognize this approach as losing wars.

Times may change, but the bottomless pit of Cheney lies and evil do not. As Charlie Savage pointed out on Twitter, the two terrorists the Cheneys refer to were actually released back to the “field of battle” by Bush and Cheney, not Obama. Was Obama involved in the story? Yes, he would be the one who actually tracked them down and killed them.

And then there is the failure to learn the lessons of the failed torture regime Bush and Cheney instituted as the hallmark of the “War on Terror”. Our friend, and former colleague, Spencer Ackerman has a must read three part series over the last three days in The Guardian (Part One, Part Two and Part Three) detailing how the CIA rolled the Obama Administration and prevented any of the necessary exposure, accountability and reform that was desperately needed in the aftermath of the torture regime and war of aggression in Iraq. It will take a while, but read all three parts. It is exasperating and maddening. It is also journalism at its finest.

And so, as we glide through the fifteenth anniversary of September 11, what are we left with from our response to the attacks? A destabilized world, an ingraining of hideous mistakes and a domestic scene more notable for jingoism and faux patriotism than dedication to the founding principles that America should stand for.

That is not what the real heroes, not only of 9/11 but the totality of American history, died to support and protect. In fact, it is an insult to their efforts and lives. If America wants to win the “War on Terror”, we need to get our heads out of our asses, quit listening to the neocons, war mongers, and military industrial complex Dwight Eisenhower warned us about, and act intelligently. This requires a cessation of adherence to jingoistic and inane propaganda and thought, and a focus on the principles we are supposed to stand for.

Bmaz is a rather large saguaro cactus in the Southwestern Sonoran desert. A lover of the Constitution, law, family, sports, food and spirits. As you might imagine, a bit prickly occasionally. Bmaz has attended all three state universities in Arizona, with both undergraduate and graduate degrees from Arizona State University, and with significant post-graduate work (in physics and organic chemistry, go figure) at both the University of Colorado in Boulder and the University of Arizona. Married, with both a lovely child and a giant Sasquatch dog. Bmaz has been a participant on the internet since the early 2000’s, including active participation in the precursor to Emptywheel, The Next Hurrah. Formally joined the Emptywheel blog as an original contributing member at its founding in 2007. Bmaz grew up around politics, education, sports and, most significantly, cars; notably around Formula One racing and Concours de Elegance automobile restoration and showing. Currently lives in the Cactus Patch with his lovely wife and beast of a dog, and practices both criminal and civil trial law.

In Attempted Hit Piece, NYT Makes Putin Hero of Defeating TPP

In an remarkable hit piece NYT spent over 5,000 words yesterday trying to prove that all of WikiLeaks’ leaks are motivated from a desire to benefit Russia.

That of course took some doing. It required ignoring the evidence of the other potential source of motivation for Julian Assange — such as that Hillary participated in an aggressive, and potentially illegal, prosecution of Assange for being a publisher and Chelsea Manning for being his source — even as it repeatedly presented evidence that that was Assange’s motivation.

Putin, who clashed repeatedly with Mrs. Clinton when she was secretary of state,

[snip]

In late November 2010, United States officials announced an investigation of WikiLeaks; Mrs. Clinton, whose State Department was scrambled by what became known as “Cablegate,” vowed to take “aggressive” steps to hold those responsible to account.

[snip]

Another person who collaborated with WikiLeaks in the past added: “He views everything through the prism of how he’s treated. America and Hillary Clinton have caused him trouble, and Russia never has.”

It also required dismissing some of the most interesting counterexamples to the NYT’s thesis.

Sunshine Press, the group’s public relations voice, pointed out that in 2012 WikiLeaks also published an archive it called the Syria files — more than two million emails from and about the government of President Bashar al-Assad, whom Russia is supporting in Syria’s civil war.

Yet at the time of the release, Mr. Assange’s associate, Ms. Harrison, characterized the material as “embarrassing to Syria, but it is also embarrassing to Syria’s opponents.” Since then, Mr. Assange has accused the United States of deliberately destabilizing Syria, but has not publicly criticized human rights abuses by Mr. Assad and Russian forces fighting there.

As I have noted, there is a significant likelihood that the Syria files came via Sabu and Anonymous from the FBI — that is, that it was actually an American spy operation. Even aside from how important a counterexample the Syrian files are (because they went directly contrary to Putin’s interests in protecting Assad, no matter how bad they made Assad’s western trade partners look), the provenance of these files and Assange’s current understanding of them deserve some attention if NYT is going to spend 5,000 words on this story.

But the most remarkable stunt in this 5,000 screed is taking Wikileaks’ efforts to show policies a great many people believe are counterproductive — most importantly, passing trade deals that benefit corporations while hurting real people, but also weakening other strong hands in climate change negotiations — and insinuating they might be a Putinesque plot. This bit requires editorial notes in line:

From November 2013 to May 2016, WikiLeaks published documents describing internal deliberations on two trade pacts: the Trans-Pacific Partnership, which would liberalize trade [ed: no, it would protect IP, the opposite of liberalizing trade] between the United States, Japan and 10 other Pacific Rim countries, and the Trade in Services Agreement, an accord between the United States, 21 other countries and the European Union.

Russia, which was excluded, has been the most vocal opponent of the pacts [this is presented with no evidence, nor even a standard of evidence. I and all of America’s TPP opponents as well as TPP opponents from around the world must redouble our very loud effort], with Mr. Putin portraying them as an effort to give the United States an unfair leg up in the global economy.

The drafts released by WikiLeaks stirred controversy among environmentalists, advocates of internet freedom and privacy, labor leaders and corporate governance watchdogs, among others. They also stoked populist resentment against free trade that has become an important factor in American and European politics. [Here, rather than admitting that this broad opposition to these trade deals shows that Putin is not the most vocal opponent of these pacts — contrary to their foundational assumption in this section — they instead portray a wide spectrum of well-considered activism as unthinking response to Putinesque manipulation. And note, here, a news outlet is complaining that ordinary citizens get access to critically important news, without even blushing? Also note the NYT makes no mention of the members of Congress who were also begging for this information, which makes it easier to ignore the profoundly anti-democratic nature of these trade agreements.]

The material was released at critical moments, with the apparent aim of thwarting negotiations, American trade officials said. [In a piece obscuring the unpopular and anti-democratic nature of these trade deals, the NYT gives these sources anonymity.]

WikiLeaks highlighted the domestic and international discord on its Twitter accounts.

American negotiators assumed that the leaks had come from a party at the table seeking leverage. [That anonymity again: NYT is protecting some bitter trade negotiators who’ve invented a paranoid conspiracy here. On what grounds?]

Then in July 2015, on the day American and Japanese negotiators were working out the final details of the Trans-Pacific Partnership, came what WikiLeaks dubbed its “Target Tokyo” release.

Relying on top-secret N.S.A. documents, the release highlighted 35 American espionage targets in Japan, including cabinet members and trade negotiators, as well as companies like Mitsubishi. The trade accord was finally agreed on — though it has not been ratified by the United States Senate — but the document release threw a wrench into the talks.

“The lesson for Japan is this: Do not expect a global surveillance superpower to act with honor or respect,” Mr. Assange said in a news release at the time. “There is only one rule: There are no rules.” [That the US spies on trade negotiations was of course not news by this point. But it is, nevertheless, worthy to point out.]

Because of the files’ provenance, United States intelligence officials assumed that Mr. Assange had gotten his hands on some of the N.S.A. documents copied by Mr. Snowden.

But in an interview, Glenn Greenwald, one of the two journalists entrusted with the full Snowden archive, said that Mr. Snowden had not given his documents to WikiLeaks and that the “Target Tokyo” documents were not even among those Mr. Snowden had taken.

The next paragraph goes on to note that the same NSA documents focused on climate negotiations between Germany and the UN, which seems to suggest the NYT also believes it is in petro-state leader Putin’s interest for the US attempts to dominate climate change negotiations to be thwarted, even as Assange describes US actions as protection petroleum interests, which of course align with Putin’s own.

In other words, as a central piece of evidence, the NYT spent 11 paragraphs repackaging opposition to shitty trade deals — a widely held very American view (not to mention a prominent one is most other countries affected) — into something directed by Russia, as if the only reasons to oppose TPP are to keep Russia on an equal shitty neoliberal trade footing as the rest of us, as if opposing the deals don’t benefit a whole bunch of red-blooded Americans.

That’s not only logically disastrous, especially in something billed as “news,” but it is very dangerous. It makes legitimate opposition to bad (albeit widely accepted as good within beltway and I guess NYT conventional wisdom) policy something disloyal.

NYT’s argument that Putin was behind WikiLeaks’ NSA leaks doesn’t hold together for a lot of reasons (not least that those two topics are probably not what Putin would prioritize, or even close). But it also has the bizarre effect, in a hit piece targeting Assange and Putin, of making Putin the hero of the anti-TPP movement.

And yet, NYT’s three journalists don’t seem to understand how counterproductive to their “journalistic” endeavor that argument is.

Update: Oy. As Trevor Timm notes, NYT worked with WL on the TPP release.

Marcy Wheeler is an independent journalist writing about national security and civil liberties. She writes as emptywheel at her eponymous blog, publishes at outlets including Vice, Motherboard, the Nation, the Atlantic, Al Jazeera, and appears frequently on television and radio. She is the author of Anatomy of Deceit, a primer on the CIA leak investigation, and liveblogged the Scooter Libby trial.

Marcy has a PhD from the University of Michigan, where she researched the “feuilleton,” a short conversational newspaper form that has proven important in times of heightened censorship. Before and after her time in academics, Marcy provided documentation consulting for corporations in the auto, tech, and energy industries. She lives with her spouse in Grand Rapids, MI.

Security, Territory and Population Part 1: Introduction

Security, Territory and Population is a collection of lectures given by the French thinker Michel Foucault at the College of France in 1977-8. Foucault describes the lectures as a work of philosophy, defined as “the politics of truth” (p. 3), a term which itself seems to require a definition. This creates two difficult problems for the reader. First, philosophy is hard. It involves carefully picking things apart, examining each element, putting the pieces back together, and then picking them apart from some other perspective, examining the new set of pieces and reassembling. It’s hard work, and it makes for difficult reading.

Second, these are lectures, not a polished work prepared for publication with the aid of editors and the time it takes to smooth out analysis. Foucault says that these lectures are part of a long program of study, of which other books and sets of lectures are parts. The earlier books include Discipline and Punish and The History of Sexuality for certain, and others as well. These are polished works, and they give an idea of the general program.

In this book, Foucault wants to talk about what he calls “bio-power” which he describes as “… the set of mechanisms through which the basic biological features of the human species became the object ofa political strategy, of a general strategy of power….” Note that I did not use the word “define”, but the word describe. We should understand this book and The Birth of Bio-Power which I plan to take up next, as tentative explorations, and not as a formal philosophical explication.

I haven’t written about Discipline and Punish or The History of Sexuality (except briefly), but I don’t think that will be a problem. The last three books I’ve written about, The Great Transformation, The Origins of Totalitarianism and The Theory of Business Enterprise, raise a similar set of issues. In each one of these books, we saw a massive change in the lives of the working people in Western Europe and the US beginning with the Industrial Revolution. These changes have produced amazing wealth for a few people, and have completely revamped the day-to-day lives of the vast group of working people. How exactly did these changes happen? Was there some great clamor for 12 hour work days in deep-pit mines? Did working people spontaneously decide to put their children to work in spinning mills at the age of 8? Was the demand for coal and cheap shirts so great that these things seemed like fair exchanges to the people whose lives were affected?

Polanyi seems to suggest that the changes were driven by economic duress both from the early capitalists and from the government. Arendt talks about the collapse of earlier social structure, and a combination of economic insecurity and random violence coupled with an appeal to nationalism and scape-goating of the Jews. Veblen doesn’t directly discuss the mechanisms of change but he does say that the industrial age demanded new structures to achieve maximum efficiency. Polanyi says that society resists these massive changes, and Veblen seems to agree. Arendt says that the people can be changed by a combination of force and rhetoric. I realize these are gross simplifications, but they are offered to show that these writers lead us to the problem Foucault wants to talk about. Foucault says that he is not interested in a theory of power, but that his investigations have the potential to expand into a discussion of major social trends.

Third, the analysis of these power relations may, of course, open onto or initiate something like the overall analysis of a society. The analysis of mechanisms of power may also join up with the history of economic transformations, for example. P. 2.

Human beings are a species, and in large groups can be understood and manipulated by those who have studied the species. In Discipline and Punish, Foucault gives us an early example:

[T]he ideas of crime and punishment must be strongly linked and ‘… follow one another without interruption…. When you have thus formed the chain of ideas in the heads of your citizens, you will then be able to pride yourselves on guiding them and being their masters.’ Foucault, Discipline and Punish, at 102, quoting J. M. Servan, Discours sur l’administration de la justice criminelle, 1767.

It reads just like Ivan Pavlov’s theory of classical conditioning. We are much more refined than that now, of course. Almost every day we read a new theory about ourselves as a species. These insights are used by business to boost sales, by politicians to gain their own ends, and by each of us for our own purposes. For some of us, it is enough to know that. For Foucault, it was a signal that we need to think more clearly about power.

One good question might be, how did neoliberalism become the dominant discourse, not just of general societal power but of control over the self. Freedom is the most important thing in neoliberal rhetoric, but if we have to work to live, how free are we? If we have to take whatever is on offer as wages and employment, how free are we? People have internalized neoliberalism as a tool of self-discipline, and at such a deep level that they cannot even recognize it as an ideology. They think it is the natural way life should be, and anyone who questions it is anathema. This leads us to think about governmentality, which I discussed very briefly here, and which Foucault discusses in some detail in this book.

I believe that theory is important. The right wing is winning because so many people believe in neoliberalism, including a large number of Democrats. Kuhn points out that scientists can’t even do analysis without a theory with which to understand the observations they are making. I don’t think theories about societies or individual human behavior can ever have the kind of certainty we can get in the physical sciences, because as humans, any theory becomes an object of study and then of change. Even so, we can’t understand our society without some kind of theory. Foucault says that philosophy is about the politics of truth. Is neoliberalism a truth? What are the points about it where we can push back against the idea that it is a truth? Identifying those points is one of the goals of this series of lectures and of the next set, collected as The Birth of Bio-Politics.

In this post, I suggested the beginnings of a theory for the left. The same kind of analysis can and should be applied to that proposal. But that’s for the future. As I work my way through these books, I will try to remember that every proposal has points of struggle, as Foucault calls them, points that are contested. Let’s start with the recognition that for many people, neoliberalism has successfully concealed the points of struggle from the people whose minds it has colonized.

Notre Dame undergrad (math); JD, Indiana University at Bloomington; 1st Lieutenant, US Army.; private practice in corporate and securities law; Assistant AG in Tennessee for consumer protection and securities; Blue Sky Securities Commissioner, Tennessee; private practice, bankruptcy and corporate law.

I have had a lifelong interest in economics. For most of my career, that interest was practical, focused on the problems in front of me. Lately I have been more interested in economics as a theory, especially its impact on the lives of people like those I met in my bankruptcy practice, and on the politics of money in the US. I also enjoy reading philosophers, starting in college and steadily expanding my reading ever since. I wrote at FireDogLake for a number of years.

Generally, I think the problem facing the US is the dominance of neoliberal discourse. I think it clouds the vision, and limits the kinds of problems that can be identified and solved. For example, the existence and danger of climate change can easily be identified in a scientific discussion. However, the problem does not fit the neoliberal discourse because science insists that the pursuit of individual and corporate self-interest will lead to devastation. In neoliberal discourse, the pursuit of self-interest always leads to Eden.

The neoliberal project has two prongs. One is the police function of crushing dissent and alternative views. The police function is provided by government agencies and private and institutional actors. The counterpart is the economic system , which is operated by government and by private and institutional actors. Some of these actors operate in both spheres. I focus on the second prong.

Recent Discussions of Neoliberalism

People seem to have trouble defining neoliberalism adequately, and especially when it comes to labeling Hillary Clinton as a neoliberal. In a recent article at Jacobin Corey Robins gives a short history of the neoliberal version of the Democratic Party, specifically aimed at the Clinton/DLC/Third Way. Billmon discussed this article in this storify piece, in which he describes three current factions in the practice of neoliberalism, There is the Neo-Keynesian version, as with Krugman; the Monetarist version, that of Milton Friedman and his many followers;, and the Supply Side version, like Paul Ryan and his economic advisors. Each of the factions has attached itself to a political ideology. Both of these pieces should be read by anyone seeking to clarify their thinking about neoliberalism.

Underlying all of them is the broader program described by Michel Foucault, which turns in large part on the notion of governmentality, a point made by Mike Konzcal in this review of Philip Mirowski’s Never Let a Serious Crisis Go to Waste. After I read that book, I wrote several pieces at FDL trying to comprehend the idea of governmentality and make it comprehensible. Here are links to several of those posts.

1. How We Govern Our Selves and Ourselves.

2. The Panoptic Effect.

3. Discipline for the Benefit of the Rich.

4. Control of Markets in Foucault’s The Birth of Biopolitics.

5. Liberalism and the Neoliberal Reaction.

The idea of governability is present in the texts I’ve been looking at. In Polanyi, we saw the transformation of the farm-dwelling peasant into the city-dwelling factory worker. Arendt touches on it with her discussion of people who cannot find a place in the productive sector of society, the superfluous people. Veblen writes about the enormous productivity of machine culture, and the changes it demanded of the worker, about which more later. The great problem is that machine culture required a tremendous amount of self-discipline from the workers to make factories function. The principal institutions of society were remade to enforce that self-discipline, from the Army to the schools to the government. Other tools included prisons and mental institutions.

In one way or another, all of these writers on neoliberalism seem to agree that the goal of neoliberalism is to replace the notion of the self as reasonably free citizen, responsible for the self, the family, the community and the state, with the notion of the self as a buyer and seller engaged in zero-sum competition with all other buyer/sellers. We are consumers of any and all goods and services, and entrepreneurial sellers of the self seen as a bundle of skills on offer to the highest bidder. Each separate transaction, buying and selling, is an opportunity for judgment by the all-knowing market. If we are successful, it’s because we are winners. If we are losers, we are superfluous. It’s an even harsher transformation of the human being than the one from peasant to factory worker.

UPDATE: The excellent Paul Rosenberg discusses the rise of neoliberalism in the sense used by Robins in this Salon article.

Notre Dame undergrad (math); JD, Indiana University at Bloomington; 1st Lieutenant, US Army.; private practice in corporate and securities law; Assistant AG in Tennessee for consumer protection and securities; Blue Sky Securities Commissioner, Tennessee; private practice, bankruptcy and corporate law.

I have had a lifelong interest in economics. For most of my career, that interest was practical, focused on the problems in front of me. Lately I have been more interested in economics as a theory, especially its impact on the lives of people like those I met in my bankruptcy practice, and on the politics of money in the US. I also enjoy reading philosophers, starting in college and steadily expanding my reading ever since. I wrote at FireDogLake for a number of years.

Generally, I think the problem facing the US is the dominance of neoliberal discourse. I think it clouds the vision, and limits the kinds of problems that can be identified and solved. For example, the existence and danger of climate change can easily be identified in a scientific discussion. However, the problem does not fit the neoliberal discourse because science insists that the pursuit of individual and corporate self-interest will lead to devastation. In neoliberal discourse, the pursuit of self-interest always leads to Eden.

The neoliberal project has two prongs. One is the police function of crushing dissent and alternative views. The police function is provided by government agencies and private and institutional actors. The counterpart is the economic system , which is operated by government and by private and institutional actors. Some of these actors operate in both spheres. I focus on the second prong.

Hillary Is Now Picking and Choosing Which Obama Accomplishments to Take Credit For

According to Hillary Clinton’s latest campaign ploy, she deserves credit for domestic policies passed under Obama — notably, ObamaCare — but not issues — in this case, trade deals — she negotiated as Secretary of State.

She rolled out former Governor and erstwhile Michigan resident Jennifer Granholm (when this story hit, some local folks were talking about how Granholm hasn’t been seen in these parts of late) to claim that Hillary can’t be held responsible for NAFTA — which she supported when it got passed by her spouse (who is, of course, a key campaign surrogate) — or for the Trans-Pacific Partnership — which she helped negotiate as Secretary of State. It’s the latter I find particularly remarkable.

“It’s not really fair to ascribe NAFTA to her when it was her husband’s administration,” Granholm said in an interview with The Detroit News. “And, of course, it’s not really fair to ascribe TPP to her when it was her boss’s administration. She can’t go against somebody who she worked for.”

As a U.S. senator from New York, Clinton voted against the Central American Free Trade Agreement (CAFTA) forged by Republican President George W. Bush’s administration.

“I think people have to be fair about looking at how she acted when she was on her own,” said Granholm, who is supporting Clinton’s candidacy.

Sanders has been talking about trade policy in speeches in Michigan this week. His campaign is planning a large rally a 7:30 p.m. Saturday night at Macomb Community College’s southern campus in Warren. Clinton and her husband were stumping for votes Saturday in Detroit.

On Thursday, Sanders highlighted trade policy at a press confernece in Lansing, previewing a potential topic of disagreement in Sunday night’s debate with Clinton at the University of Michigan-Flint.

“On the issue of trade, Secretary Clinton’s views and mine are very different,” Sanders said. “She has supported NAFTA, I opposed it. She supported permanent normal trade relations with China, I vigorously opposed the (permanent trade) with China. She supported permanent normal trade relations with Vietnam, I opposed that.”

“She supported the Colombia Free Trade Agreement. I opposed that. And she supported the Korean Free Trade Agreement. I opposed that.”

It’s unclear from Detroit News’ reporting whether Granholm includes the Colombian and Korean free trade deals in her absolution of Hillary’s responsibility or not. But as David Sirota has shown, Hillary’s own emails show some really damning details about her claims and enthusiasm for the former (which makes sense, because she is also an enthusiastic booster of Plan Colombia).

During her 2008 presidential run, Clinton said she opposed the deal because “I am very concerned about the history of violence against trade unionists in Colombia.” She later declared, “I oppose the deal. I have spoken out against the deal, I will vote against the deal, and I will do everything I can to urge the Congress to reject the Colombia Free Trade Agreement.”

But newly released emails show that as secretary of state, Clinton was personally lobbying Democratic members of Congress to support the deal, even promising one senior lawmaker that the deal would extend labor protections to Colombian workers that would be as good or better than those enjoyed by many workers in the United States.

One of the 2011 emails from Clinton to U.S. Trade Representative Michael Froman and Clinton aide Robert Hormats has a subject line “Sandy Levin” — a reference to the Democratic congressman who serves on the House Ways and Means Committee, which oversees U.S. trade policy. In the email detailing her call with Levin, she said the Michigan lawmaker “appreciates the changes that have been made, the national security arguments and Santos’s reforms” — the latter presumably a reference to Colombian President Juan Manuel Santos. She concludes the message about the call with Levin by saying, “I told him that at the rate we were going, Columbian [sic] workers were going to end up w the same or better rights than workers in Wisconsin and Indiana and, maybe even, Michigan.”

Note, too, in that email that there is no exemption claimed for the paragraph that follows on the discussion of KORUS, which has been particularly damaging to Michigan’s economy.

Look, last I checked, Hillary cleaned up on Super Tuesday claiming she is running on a continuation of Obama’s policies. While I recognize she mostly means the domestic policies she had a less direct role in, at some point we get to hold her accountable for the things she did in her actual job, which included negotiating trade deals that hurt American workers, especially while she’s claiming she’ll be Obama’s third term. Her role in trade deals — and her likely dishonesty about TPP (see this Larry Summers piece that assumes if Trump wins, TPP will be dismantled, which suggests he expects it to be fully implemented if Hillary wins) is part of who she is. Yes, she voted against a trade deal once. Yes, she also had an affirmative role in a lot more trade deals. That’s a shitty record to run on in MI (and it will be a shitty record that Trump will hammer her on mercilessly if they end up being the nominees), but it is her record, part of the extensive experience that she points to as making her best qualified to be President.

 

Marcy Wheeler is an independent journalist writing about national security and civil liberties. She writes as emptywheel at her eponymous blog, publishes at outlets including Vice, Motherboard, the Nation, the Atlantic, Al Jazeera, and appears frequently on television and radio. She is the author of Anatomy of Deceit, a primer on the CIA leak investigation, and liveblogged the Scooter Libby trial.

Marcy has a PhD from the University of Michigan, where she researched the “feuilleton,” a short conversational newspaper form that has proven important in times of heightened censorship. Before and after her time in academics, Marcy provided documentation consulting for corporations in the auto, tech, and energy industries. She lives with her spouse in Grand Rapids, MI.