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This post was sparked after reading Richard Heinberg’s recent article Life After Growth, which is a much more personal introspection of Richard’s story uncovering the realities of peak oil and the limits to growth. I recommend that one, but this earlier essay he wrote on the “End of Growth” I believe may go down in history as required reading.
In it he asks what are the fundamental reasons behind the ongoing economic crisis, arguing persuasively that the role of ecological limits like peak oil cannot be ignored as inhibiting growth both in the long term as well as the short. However, what Richard lacks is an integrated analysis of the social limits to growth, especially the power of social movements all over the globe working against this system of capitalism.
Without a deep appreciation for the rights of poor and exploited people, it is easy to make mistakes, as I believe Richard does in this essay with regards to immigration, for example. Further, without seeing the big picture of people’s resistance to capitalism and yearning for a new, non-growth, sustainable world, it is easy to lose hope. And in these difficult times, hope is our most important natural resource. [alex]
Temporary Recession or the End of Growth?
Everyone agrees: our economy is sick. The inescapable symptoms include declines in consumer spending and consumer confidence, together with a contraction of international trade and available credit. Add a collapse in real estate values and carnage in the automotive and airline industries and the picture looks grim indeed.
But why are both the U.S. economy and the larger global economy ailing? Among the mainstream media, world leaders, and America’s economists-in-chief (Treasury Secretary Geithner and Federal Reserve Chairman Bernanke) there is near-unanimity of opinion: these recent troubles are primarily due to a combination of bad real estate loans and poor regulation of financial derivatives.
This is the Conventional Diagnosis. If it is correct, then the treatment for our economic malady might logically include heavy doses of bailout money for beleaguered financial institutions, mortgage lenders, and car companies; better regulation of derivatives and futures markets; and stimulus programs to jumpstart consumer spending.
But what if this diagnosis is fundamentally flawed? The metaphor needs no belaboring: we all know that tragedy can result from a doctor’s misreading of symptoms, mistaking one disease for another.

Something similar holds for our national and global economic infirmity. If we don’t understand why the world’s industrial and financial metabolism is seizing up, we are unlikely to apply the right medicine and could end up making matters much worse than they would otherwise be.
To be sure: the Conventional Diagnosis is clearly at least partly right. The causal connections between subprime mortgage loans and the crises at Fannie Mae, Freddie Mac, and Lehman Brothers have been thoroughly explored and are well known. Clearly, over the past few years, speculative bubbles in real estate and the financial industry were blown up to colossal dimensions, and their bursting was inevitable. It is hard to disagree with the words of Australian Prime Minister Kevin Rudd, in his July 25 essay in the Sydney Morning Herald: “The roots of the crisis lie in the preceding decade of excess. In it the world enjoyed an extraordinary boom…However, as we later learnt, the global boom was built in large part…on a house of cards. First, in many Western countries the boom was created on a pile of debt held by consumers, corporations and some governments. As the global financier George Soros put it: ‘For 25 years [the West] has been consuming more than we have been producing…living beyond our means.’” (1)
But is this as far as we need look to get to the root of the continuing global economic meltdown?
A case can be made that dire events having to do with real estate, the derivatives markets, and the auto and airline industries were themselves merely symptoms of an even deeper, systemic dysfunction that spells the end of economic growth as we have known it.
In short, I am suggesting an Alternative Diagnosis. This explanation for the economic crisis is not for the faint of heart because, if correct, it implies that the patient is far sicker than even the most pessimistic economists are telling us. But if it is correct, then by ignoring it we risk even greater peril.
Economic Growth, The Financial Crisis, and Peak Oil
For several years, a swelling subculture of commentators (which includes the present author) has been forecasting a financial crash, basing this prognosis on the assessment that global oil production was about to peak. (2) Our reasoning went like this: Read the rest of this entry »
Engaging the Crisis: Organizing Against Budget Cuts and Community Power in Philadelphia
by Kristin Campbell
Reposted from Organizing Upgrade, March 1, 2010
Organizing Upgrade is honored to offer a preview of this insightful reflection on organizing – Engaging the Crisis: Organizing Against Budget Cuts and Building Community Power in Philadelphia – which will appear in Left Turn magazine #36 (April/May 2010). You can subscribe to Left Turn online at www.leftturn.org or become a monthly sustainer at www.leftturn.org/donate.
On November 6, 2008, just days after Philadelphians poured onto the streets to celebrate the Phillies winning the World Series championship and Barack Obama the US presidency, Mayor Michael Nutter announced a drastic plan to deal with the cities $108 million budget gap. Severe budget cuts were announced, including the closure of 11 public libraries, 62 public swimming pools, 3 public ice skating rinks, and several fire engines. Nutter also stated that 220 city workers would be laid off and that 600 unfilled positions would be eliminated entirely, amounting to the loss of nearly 1,000 precious city jobs. In classic neo-liberal style, the public sector was to sacrifice, while taxpayer money would bail out the private banking institutions.
City in crisis
Well before the economic crises of 2008, a decades-long process of economic restructuring and deindustrialization had left Philadelphia, with a population just over 1.4 million, an incredibly under-resourced city. Philadelphia has the highest poverty rate out of the ten largest cities in the US, an eleven percent unemployment rate and a high-school dropout rate that hovers dangerously around 50 percent.
The proposed budget cuts sparked waves of popular outrage especially concerning the closure of the libraries, many of which are located in low-income communities of color and serve as bedrock institutions for many basic resources. Eleanor Childs, a principal of a school that heavily relies on West Philadelphia’s Durham library, and later a member of the Coalition to Save the Libraries, recalls “a groundswell of concern about the closing of the libraries… people rose up. We had our pitchforks. We were ready to fight to keep our libraries open.”
Nutter’s administration set up eight townhall meetings across Philadelphia, designed to calm the citywide uproar. Thousands of people filled the townhall meetings poised to question how such drastic decisions were made without any public input. Under the banner “Tight Times, Tough Choices,” Mayor Nutter and senior city officials attempted to explain the necessity of such deep service cuts. They explained that the impact of the economic crisis on the city had only become apparent in recent weeks, and because the city could not raise significant revenue to offset its financial loses in the timeframe that was needed, rapid cuts were mandatory and effective January 1, 2009.
Community response
In the following days and weeks, Philadelphians quickly mobilized against the decision that their public services and city workers pay for the fallout of a economic system that had already left so many of them struggling. Neighborhood leaders organized impromptu rallies at the eleven branch libraries. Along with organizing people to turn out at the Mayor’s townhall meetings, these rallies gained media attention on both the nightly news and in the major newspapers, demonstrating widespread opposition to the budget cuts. Sherrie Cohen, member of the Coalition to Save the Libraries and long-time resident of the Ogontz neighborhood of North Philly remembers her neighbors coming together to say, “We are not going to let this library close. It’s not gonna happen. We fought for 36 years for a library in our neighborhood.” Read the rest of this entry »
This is a great, short video that shows why “Cap and Trade” schemes to reduce carbon emissions, like what world leaders are discussing at the Copenhagen Summit, are fundamentally flawed. Turns out that selling our atmosphere to corporations might actually be a bad way to stop climate change. It’s just another attempt to bail out capitalism, this time by making a commodity out of our hopes for a sustainable future.
Annie Leonard, creator of the original “Story of Stuff,” has hit another one out of the park by breaking down complex political issues into simple, accessible and visually appealing viral videos. Check it out (And share with family and friends)! [alex]
And here is the original, highly-acclaimed “Story of Stuff”
see more at storyofstuff.com
Also published by The Rag Blog, OpEdNews, Signs of the Times, Interactivist Info Exchange, and Toward Freedom.
Who Were the Witches? – Patriarchal Terror and the Creation of Capitalism
Alex Knight
November 5, 2009
This Halloween season, there is no book I could recommend more highly than Silvia Federici’s brilliant Caliban and the Witch: Women, the Body, and Primitive Accumulation (Autonomedia 2004), which tells the dark saga of the Witch Hunt that consumed Europe for more than 200 years. In uncovering this forgotten history, Federici exposes the origins of capitalism in the heightened oppression of workers (represented by Shakespeare’s character Caliban), and most strikingly, in the brutal subjugation of women. She also brings to light the enormous and colorful European peasant movements that fought against the injustices of their time, connecting their defeat to the imposition of a new patriarchal order that divided male from female workers. Today, as more and more people question the usefulness of a capitalist system that has thrown the world into crisis, Caliban and the Witch stands out as essential reading for unmasking the shocking violence and inequality that capitalism has relied upon from its very creation.
Who Were the Witches?
Parents putting a pointed hat on their young son or daughter before Trick-or-Treating might never pause to wonder this question, seeing witches as just another cartoonish Halloween icon like Frankenstein’s monster or Dracula. But deep within our ritual lies a hidden history that can tell us important truths about our world, as the legacy of past events continues to affect us 500 years later. In this book, Silvia Federici takes us back in time to show how the mysterious figure of the witch is key to understanding the creation of capitalism, the profit-motivated economic system that now reigns over the entire planet.
During the 15th – 17th centuries the fear of witches was ever-present in Europe and Colonial America, so much so that if a woman was accused of witchcraft she could face the cruellest of torture until confession was given, or even be executed based on suspicion alone. There was often no evidence whatsoever. The author recounts, “for more than two centuries, in several European countries, hundreds of thousands of women were tried, tortured, burned alive or hanged, accused of having sold body and soul to the devil and, by magical means, murdered scores of children, sucked their blood, made potions with their flesh, caused the death of their neighbors, destroyed cattle and crops, raised storms, and performed many other abominations” (169).
In other words, just about anything bad that might or might not have happened was blamed on witches during that time. So where did this tidal wave of hysteria come from that took the lives so many poor women, most of whom had almost certainly never flown on broomsticks or stirred eye-of-newt into large black cauldrons?
Caliban underscores that the persecution of witches was not just some error of ignorant peasants, but in fact the deliberate policy of Church and State, the very ruling class of society. To put this in perspective, today witchcraft would be a far-fetched cause for alarm, but the fear of hidden terrorists who could strike at any moment because they “hate our freedom” is widespread. Not surprising, since politicians and the media have been drilling this frightening message into people’s heads for years, even though terrorism is a much less likely cause of death than, say, lack of health care.1 And just as the panic over terrorism has enabled today’s powers-that-be to attempt to remake the Middle East, this book makes the case that the powers-that-were of Medieval Europe exploited or invented the fear of witches to remake European society towards a social paradigm that met their interests.
Interestingly, a major component of both of these crusades was the use of so-called “shock and awe” tactics to astound the population with “spectacular displays of force,” which helped to soften up resistance to drastic or unpopular reforms.2 In the case of the Witch Hunt, shock therapy was applied through the witch burnings – spectacles of such stupefying violence that they paralyzed whole villages and regions into accepting fundamental restructuring of medieval society.3 Federici describes a typical witch burning as, “an important public event, which all the members of the community had to attend, including the children of the witches, especially their daughters who, in some cases, would be whipped in front of the stake on which they could see their mother burning alive” (186).

The witch burning was the medieval version of "Shock and Awe"
The book argues that these gruesome executions not only punished “witches” but graphically demonstrated the repercussions for any kind of disobedience to the clergy or nobility. In particular, the witch burnings were meant to terrify women into accepting “a new patriarchal order where women’s bodies, their labor, their sexual and reproductive powers were placed under the control of the state and transformed into economic resources” (170). Read the rest of this entry »
a self-explanatory call to action from Jobs with Justice that is right on. [alex]

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Walden Bello explains the logic of breaking with corporate globalization and points the way towards a more socially and ecologically responsible economic paradigm. Includes “11 pillars of deglobalization.” [alex]
The Virtues of Deglobalization
by Akbayan! Representative Walden Bello
originally posted on Foreign Policy in Focus
reposted from Focus on the Global South.
The current global downturn, the worst since the Great Depression 70 years ago, pounded the last nail into the coffin of globalization. Already beleaguered by evidence that showed global poverty and inequality increasing, even as most poor countries experienced little or no economic growth, globalization has been terminally discredited in the last two years. As the much-heralded process of financial and trade interdependence went into reverse, it became the transmission belt not of prosperity but of economic crisis and collapse.
End of an Era
In their responses to the current economic crisis, governments paid lip service to global coordination but propelled separate stimulus programs meant to rev up national markets. In so doing, governments quietly shelved export-oriented growth, long the driver of many economies, though paid the usual nostrums to advancing trade liberalization as a means of countering the global downturn by completing the Doha Round of trade negotiations under the World Trade Organization. There is increasing acknowledgment that there will be no returning to a world centrally dependent on free-spending American consumers, since many are bankrupt and nobody has taken their place.
Moreover, whether agreed on internationally or unilaterally set up by national governments, a whole raft of restrictions will almost certainly be imposed on finance capital, the untrammeled mobility of which has been the cutting edge of the current crisis.
Intellectual discourse, however, hasn’t yet shown many signs of this break with orthodoxy. Neoliberalism, with its emphasis on free trade, the primacy of private enterprise, and a minimalist role for the state, continues to be the default language among policymakers. Establishment critics of market fundamentalism, including Joseph Stiglitz and Paul Krugman, have become entangled in endless debates over how large stimulus programs should be, and whether or not the state should retain an interventionist presence or, once stabilized, return the companies and banks to the private sector. Moreover some, such as Stiglitz, continue to believe in what they perceive to be the economic benefits of globalization while bemoaning its social costs.
But trends are fast outpacing both ideologues and critics of neoliberal globalization, and developments thought impossible a few years ago are gaining steam. “The integration of the world economy is in retreat on almost every front,” writes the Economist. While the magazine says that corporations continue to believe in the efficiency of global supply chains, “like any chain, these are only as strong as their weakest link. A danger point will come if firms decide that this way of organizing production has had its day.”
“Deglobalization,” a term that the Economist attributes to me, is a development that the magazine, the world’s prime avatar of free market ideology, views as negative. I believe, however, that deglobalization is an opportunity. Indeed, Read the rest of this entry »



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