Volcker announces a new era

I was in Detroit, when Paul Volcker as chairman of the Fed weaponized its monetary instruments to throw the economy into a deep recession/depression. The auto industry and the traditional centers of auto production like Detroit, Flint, Pontiac, etc., felt its devastating impact as much as anybody. To make matters worse, it coincided with other changes taking place in the global auto industry that weakened the Big 3 and set into motion a massive restructuring process.

The experience of Detroit and other auto center in Michigan was of a different order of magnitude than many other places (and its racist dimension shouldn’t be lost sight of), but, at the same time, it wasn’t an outlier. Across the national and global economy the devastation of Volcker’s actions were, and are still, felt.

With the advantage of hindsight, his actions signaled not only a new round of class warfare, but in a fuller sense the beginning of the political ascendancy of finance and financial elites on a global level and the onset of an era of harsh austerity with all its attendant long term hurt and restructuring. The era of neoliberal governance and accumulation, it can be said, began, not with a bang, but with Volcker’s matter of fact announcement to ratchet up interest (borrowing) rates to record levels. A bang then followed. Few of us knew how big and how enduring that bang would be!

Good analysis, but …

Good analysis. But I would add that the decision to move forward on impeachment not only fires up the base, but also in the course of this fight the Democrats have captured the moral high ground — no one more so than Nancy Pelosi — while revealing in a new way the corruption and mendacity of Trump.

For whom does the boom toll?

Word is that the economy is booming. But one has to ask: Booming for whom? These gross economic figures don’t capture what is happening in the nooks and crannies of day to day life where people live, work, and worry. What is more, in a passing sentence, the article mentions that manufacturing is contracting, while saying nothing about growing income inequality and the new geography of jobs and opportunities. Most people make judgments about the status of economy on a micro, not a macro level, on the level of their own experience.

Counterrevolution past and present

Not long after the guns fell silent on the battlefields of the Civil War, an experiment in interracial democracy and inequality in the states of the Confederacy began. But this experiment, as noble, just, and necessary as it was, lasted less than a decade before it was savagely routed and uprooted by a counterrevolution. At the head of this nasty about face was, no surprise, the former slave owners and a hardscrabble gang of other white allies.

Employing the lethality of the gun, the terror of the hangman’s noose, the weapon of systematic political disenfranchisement, and the language and fog of a racist counter narrative, this motley collection of Southern Redeemers with the complicity of the federal government crushed Reconstruction and then established a regime of racial servitude and oppression — Jim Crow — in the South. While this regime didn’t restore slavery, it surely wasn’t a regime of “free wage” labor either in which the buyer of labor confronts the seller on a level playing field and political rights are enjoyed by all.

Instead, what took root was a coercive and racialized mode of accumulation, exploitation, and governance that rested on tenant sharecropping, convict labor, hyper segregation, the systematic denial of political rights, and state sanctioned and extra legal violence. In other words, while the mode of extraction of labor power and method of rule were different, it wasn’t that different. The former slaves were still the “hewers of wood and drawers of water,” mercilessly exploited, and their freedom and autonomy were narrowly circumscribed. It was this lurch backward, this historical retrogression from the achievements and promise of Reconstruction that provoked W.E.B. Dubois to write, “. . . the slave went free; stood a brief moment in the sun; then moved back again toward slavery.”

But not willingly, not without a fight. They resisted this racist, anti-working class, and anti-democratic counterrevolution, notwithstanding the imbalance of power and the widespread use of terror against them. So much so that it took more than two decades to fully institutionalize this new system of racial oppression. Once institutionalized, however, it proved durable and only began to wobble and then fracture under the impact of changes wrought by World War II and the ascension of U.S. to the apex of the post WWII global order.

But these changes by themselves, of course, were not enough to bring down this pernicious racial order. In fact, this regime would have persisted for much longer than it did were it not for the courageous intervention of the descendants of former slaves.

All of which goes to prove that regimes of exploitation and oppression don’t voluntarily exit the stage of politics on their own initiative, but rather require a concerted push from a determined coalition of people and classes, equipped with able leaders, a sound strategy, flexible tactics, and a message and vision of democratic, progressive, and egalitarian change. That lesson still resonates today, as we face our own version of a white nationalist, anti-democratic authoritarian counterrevolution. But this time on a national scale and orchestrated by Trump and his Republican allies, all of whom are every bit as racist, anti-democratic, and anti-egalitarian as their distant forebears in the South.

But our good luck is that we fight on ground that is far more favorable than that on which the newly freed slaves found themselves a hundred and fifty years ago. But this only matters if the diverse, cross class coalition opposing Trump and Trumpism utilizes this “ground” to enlist more and more people in this existential struggle.

Front and center at this moment is the struggle to impeach Trump for high crimes and misdemeanors. Even if Trump in the end isn’t impeached, thanks to the Republican majority in the Senate, his star can be considerably weakened in the course of this titanic clash. And this, in turn, will give Democrats and the larger anti-Trump coalition a leg up in their struggle to decisively beat back Trump, the extreme right, and their authoritarian counterrevolution at the ballot box.

Missed Opportunities

In his first speech upon leaving federal prison in the mid-1950s, Gene Dennis, the General Secretary of the Communist Party at the time, said that the main problems facing the party were dogmatism in its thinking and sectarianism in its practice. He also, bravely in my view, made a pitch for the formation of a mass socialist party.

In retrospect, I believe Gene was onto something, but others in the leadership at the time were of a different mind. Too bad. We missed an opportunity to renovate the party’s thinking and practice.

But, to make matters worse, we did it again 30 years later when a substantial section of the leadership led by Gus Hall looked backward, doubled down, and repeated comfortable formulas as a good chunk of the socialist world was going belly up. This time, I was present. And I’m not proud of my role.

Only later did I rethink my positions, one of which was that marxism, if it is going to be viable and eye opening, has to possess a self-critical/self-reflective capacity. If it doesn’t, it becomes a theology, not a vibrant and open ended way of looking at and changing the world. Much the same could be said about a party or movement of the left.

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