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A massive wave of layoffs was announced yesterday by 12 major US corporations, including Caterpillar, General Motors, Home Depot, Sprint Nextel and Pfizer. Microsoft also announced its first-ever mass layoffs of 5,000 workers. Overall, more than 75,000 jobs are being cut from the workforce after Unemployment levels were reported as 7.2% in December, the highest level in over 16 years, with no end to the bleeding in sight.
As more and more workers fill the unemployment rolls, it’s time to ask: where will future jobs come from? While government and corporate bigshots plan yet another “economic stimulus” and bailout of the banks, what long-term jobs can we realistically create right now?
Lots of answers present themselves if we look through the lens of peak oil, and start replacing our oil-based economy with a people-based economy. Instead of relying on greenhouse gas-producing fossil fuels, we can tap into the power of human labor, which happens to be our greatest renewable resource.
Certainly there is a need to employ millions to weatherize homes and build and install solar panels and wind turbines (which Obama may address), but there is also a huge need to re-tool Detroit automakers to STOP producing gas-guzzling individual cars, and start making buses, trains and other forms of public transit. Bicycles are also desperately needed, so we need workers to build them and more to repair them too.
We also need lots more doctors and nurses if we make health care universally available, and social workers and therapists to help deal with the psychological trauma our population has suffered from militarism and soulless consumerism. Since many of these jobs require education and training, we need to hire lots more teachers, and we also need education to be a lot more affordable to so more people can access these kinds of careers.
Perhaps the largest gains in the job sector can be achieved by shifting food production away from mega-scale agribusinesses and fossil-fuel intensive monoculture and factory farms, towards community-based, local, organic, family farming and free-range livestock raising. By breaking up the huge corporate farms into family-size and community-size plots, we can repopulate rural America (and stop suburban sprawl), produce better, healthier food, respect animal rights, and create millions of new landowners. Simultaneously we can follow the example of Cuba and turn our blighted inner-cities into gardens, by utilizing permaculture and organic community-run agriculture, which would reduce crime and poverty in our decaying urban areas, bring quality food to places currently plagued by malnutrition, and create millions upon millions of rewarding and meaningful jobs.
How will we finance it? Simple. Disassemble the huge financial firms and multinational corporate banks whose greed caused this economic crisis and create thousands of local banks and credit unions, run by people in the community (even more jobs!) Taxing the rich would help a lot too, and we can cut tons of wasteful government spending on things like the wars in the Middle East, excessive prisons, and nuclear, biological and chemical weapons. The money is right there, we just need to redirect it to things that actually help people instead of killing them.
This of course requires a revolutionary change in the economic and political structure of the United States, which means average people like you and me having control over the decisions affecting our lives, instead of remaining at the whim of wealthy elites who in the current crisis have shown themselves unable to run a lemonade stand, let alone the global economy.
[alex]
Deluge of layoffs hits U.S. economy
January 27, 2009
By Jerry Hirsch and Maura Reynolds
Scott Olson, Getty Images
A worker walks between Caterpillar earth-moving equipment at a road construction site near Joliet, Ill. The company has announced that it will cut nearly 20,000 jobs as the recession reduces demand for its products.
Companies including Home Depot, Caterpillar, Pfizer and Sprint plan to cut nearly 60,000 jobs, adding urgency to the need to agree on a stimulus plan.
U.S. companies slashed nearly 60,000 jobs Monday, adding impetus to the Obama administration’s efforts to reach agreement on a plan to pump $825 billion into the economy over a two-year period.
But it’s unclear whether even that massive influx of funding and tax cuts would be enough to get companies hiring again in the near term.
The cuts by firms including Caterpillar, General Motors, Texas Instruments, Home Depot, Sprint Nextel and Pfizer brought the total of jobs shed so far this month to 187,550, more than November or December and well over double the number of January 2008, according to employment firm Challenger, Gray & Christmas Inc.
Analysts believe that Obama’s strategy of pouring money into state and local governments could prevent layoffs and furloughs of public sector employees, including teachers, police officers and other government workers.
Economists have estimated that the plan will protect or create 3 million to 4 million jobs in the next two years.
But the U.S. economy lost 2.6 million jobs last year and could lose 2 million more during the first half of this year. Read the rest of this entry »
Richard Heinberg (author of the seminal work The Party’s Over: Oil, War and the Fate of Industrial Societies) lays out a clear program for Obama, to move the US away from its current suicidal path and towards a green economy. However, the danger may be that Obama has surrounded himself with people who are telling him to do the exact opposite of each of these recommendations. Our job, as a movement, is to move the country away from fossil fuels by blocking the construction of more death machines (coal plants, oil-guzzling cars, the military…), and by simultaneously creating irresistible alternatives. [alex]
Memo to the President-elect on Energy Realism and the Green New Deal
MuseLetter 200
December 2008 by Richard Heinberg
Executive Summary
Our continued national dependence on fossil fuels is creating a crippling vulnerability to both long-term fuel scarcity and catastrophic climate change.
The current economic crisis requires substantial national policy shifts and enormous new government injections of capital into the economy. This provides an opportunity for a project whose scope would otherwise be inconceivable: a large-scale, coordinated energy transition away from fossil fuels and toward renewable energy.
This project must happen immediately; indeed, it may already be too late. We have already left behind the era of cheap and plentiful fossil fuels, with a permanent decline of global oil production likely underway within three years. Moreover, the latest research tells us we have less than eight years to bring carbon emissions under control if we hope to avoid catastrophic climate change. Lacking this larger frame of understanding and action, a mere shift away from foreign oil dependence will fail to meet the challenge at hand.
The energy transition must not be limited to building wind turbines and solar panels. It must include the thorough redesign of our economic and societal infrastructure, which today is utterly dependent on cheap fossil fuels. It must address not only our transportation system and our electricity grid, but also our food system and our building stock.
Our 21st century nation’s dependence on 20th century fossil fuels is the greatest threat we face, far more so than the current financial crisis. A coordinated, comprehensive transition to an economy that is no longer dependent on hydrocarbon fuels and no longer emits climate-changing levels of carbon—a Post Carbon Energy Transition—will be the Obama Administration’s greatest opportunity to lead the nation on a path toward sustainable prosperity.
Overview: Need and Scope
As a new Administration prepares to take the reins of power, America’s economy is descending into a recession or, quite possibly, a depression. Read the rest of this entry »
[Following on the heels of another majority victory with Burger King, the Coalition of Immokalee Workers (CIW), and their student allies in the Student-Farmworker Alliance (SFA) have succeeded in pressuring Subway to pay an extra 1 cent per pound for their tomatoes so that workers who pick those tomatoes will get a fair wage. CIW/SFA have also reached similar agreements with McDonalds and Taco Bell, which means all the major fast food industry titans have now given in! This is another great example of the power of democratic social movements to achieve change. - alex]
Originally published by the Coalition of Immokalee Workers’ website.
Miami, FL, 12/2/08: Gerardo Reyes (seated, right) of the Coalition of Immokalee Workers and Jan Risi (also seated), President and CEO of Subway’s Miami-based purchasing arm, the Independent Purchasing Cooperative, commemorate the signing of the CIW’s newest agreement with a fast-food industry leader to improve wages and working conditions in Florida’s tomato fields.
SUBWAY SIGNS!…
December 2, 2008: Subway, the third largest fast-food chain in the world and the biggest fast-food buyer of Florida tomatoes, reached an agreement today with the CIW to help improve wages and working conditions for the workers who pick their tomatoes!
What they’re saying about the Subway agreement:
- “This agreement between Subway and the Coalition of Immokalee Workers is yet another blow to the scourge of slavery that continues to exist in the tomato fields of Florida,” Senator Bernie Sanders said in a statement. “Subway is to be congratulated for moving to ensure that none of its products are harvested by slave or near-slave labor. Sadly, too many other companies continue to tolerate this travesty.”
- “Subway strongly supports the farmworkers’ rights and has entered in an agreement with the (Coalition of Immokalee Workers) to pay the additional 1 cent per pound for tomatoes grown in the Immokalee region of Florida,” Subway spokesman Les Winograd said.
- “Today, the fast-food industry has spoken with one voice,” said Gerardo Reyes of the CIW. “With this agreement, the four largest restaurant companies in the world have now joined their voices to the growing call for a more modern, more humane agricultural industry in Florida.” (read the joint press release in its entirety)
- But Sherri Daye Scott, who edits QSR, a North Carolina-based food-service industry magazine, noted consumers spoke first – by supporting the coalition’s petition drives, protests and boycotts.
“Until the college students and then the consumers got involved, it was not that big a deal,” Scott said.
Will fair food become an industry watchword?
“It could,” Scott said. “I haven’t heard any rumblings yet beyond the tomato pickers yet, but it could gain traction. Look at food safety – five, 10 years ago, you didn’t hear much about it; now it’s everywhere. The same thing could happen with transparency in the food supply chain.“
- “Subway’s agreement could yield as much money as all the other deals combined. That’s because Subway is the largest user of tomatoes and has 24,000 stores in the United States. Burger King’s agreement is expected to yield about $250,000 for workers, numbers relatively comparable to the Taco Bell and McDonald’s agreement.” (Miami Herald)
Meanwhile, the Northeast Fair Food Tour continues, spreading the news of the Subway agreement and meeting with allies to discuss plans for the road ahead in the Campaign for Fair Food, including a growing focus on the other leading buyers of Florida tomatoes, the supermarket and foodservice industries.
Click here for a revised list of planned public events on the tour
Now I hope people don’t see this article as ‘support for the Soviet Union’ or something ridiculous like that, but I think this is a very insightful and amusing article, based on a powerpoint presentation. The question is, was the USSR more prepared for the economic collapse it suffered than the US is for the collapse it will soon suffer? Orlov lived through the former and seems to think that it was.
Also note that I strongly disagree with his recommendation to abandon politics – he’s right that politicians are swine but i think he’s wrong in overlooking people’s ability to build a resistance movement that can make real changes to our society, despite politicians best efforts to derail it. So with that, enjoy the article! [alex]
Closing the ‘Collapse Gap’: the USSR was better prepared for collapse than the US
by Dmitry Orlov
Originally published be Energy Bulletin, December 4, 2006.
Good evening, ladies and gentlemen. I am not an expert or a scholar or an activist. I am more of an eye-witness. I watched the Soviet Union collapse, and I have tried to put my observations into a concise message. I will leave it up to you to decide just how urgent a message it is.
My talk tonight is about the lack of collapse-preparedness here in the United States. I will compare it with the situation in the Soviet Union, prior to its collapse. The rhetorical device I am going to use is the “Collapse Gap” – to go along with the Nuclear Gap, and the Space Gap, and various other superpower gaps that were fashionable during the Cold War.
Slide [2] The subject of economic collapse is generally a sad one. But I am an optimistic, cheerful sort of person, and I believe that, with a bit of preparation, such events can be taken in stride. As you can probably surmise, I am actually rather keen on observing economic collapses. Perhaps when I am really old, all collapses will start looking the same to me, but I am not at that point yet.
And this next one certainly has me intrigued. From what I’ve seen and read, it seems that there is a fair chance that the U.S. economy will collapse sometime within the foreseeable future. It also would seem that we won’t be particularly well-prepared for it. As things stand, the U.S. economy is poised to perform something like a disappearing act. And so I am eager to put my observations of the Soviet collapse to good use.
Slide [3] I anticipate that some people will react rather badly to having their country compared to the USSR. I would like to assure you that the Soviet people would have reacted similarly, had the United States collapsed first. Feelings aside, here are two 20th century superpowers, who wanted more or less the same things – things like technological progress, economic growth, full employment, and world domination – but they disagreed about the methods. And they obtained similar results – each had a good run, intimidated the whole planet, and kept the other scared. Each eventually went bankrupt. Read the rest of this entry »
This is a new article written by my friend and mentor, Jerry Silberman. I helped him edit it, so if anyone wants to discuss these issues, i’m available! [alex]
The Last Recession? Or Our Best Opportunity for Hope?
by Jerry Silberman
Originally published by Energy Bulletin, November 7, 2008.
As the drama of the bursting bubble of Wall St. gives way to a slower, but steady and painful, economic decline, the first and most important question we should ask is “Should we try to blow another bubble, or should we reject bubble culture values for something entirely different?”
If we agree that we need a new culture, this leads to the question “Can we take advantage of the opportunity afforded by this collapse, by the exposure of a failed system, to establish new “rules for the house” (the root meaning of “economy” from the Greek)?”
If the house, metaphorically, is Planet Earth the way we have enjoyed it for millennia, then making the choice now to change to a sustainable economy is the best way to turn the apparent lemon of this economic contraction into the best lemonade in history. Read the rest of this entry »
I’ve reposted a nice article which highlights the class dynamics at the heart of the current financial meltdown and potential bailout. It gives a very simple and straightforward summary from a revolutionary point of view, so I’m reposting it.
This is by no means a complete analysis however – for example it overlooks the critical role of oil, which is the lifeblood of the US capitalist economy and motivates many of its military aggression around the world. Specifically, there is a need to understand how the peak in global oil production has affected and continues to undermine the US-led industrial capitalist system, particularly in regards to the bursting of the housing bubble in the first place, along with the rising gas prices, food prices, heating costs, and subsequent inflation of the failing dollar.
Because oil production will never recover to its 2005/6 level, but will continue to decrease more rapidly, there can be no long-term recovery of the global financial markets, and for that reason I disagree with the declaration here that “Capitalism will not collapse…” On the contrary, it WILL collapse, because any system that structurally depends upon constant growth and speculation-upon-that-growth cannot coexist forever on a finite planet where necessary and crucial resources are in permanent and deepening shortage.
The current economic crisis is often compared to other historical crises of capitalism, where after appearing on the verge of death, the system restored itself and came back stronger than ever. Thus we are warned that capitalism is a self-destructive beast, but not a suicidal one. On its face this is solid logic but it overlooks the specific nature of the current crisis and its roots in the global peak oil phenomenon. It is my contention and the purpose of this website to demonstrate that the oil crisis is sucking global industrial capitalism dry like the vampire it is, and that there is no combination of “alternative” energy sources – whether coal, gas, nuclear, ethanol, wind, solar, whatever – that can do for this system what oil does.
Oil is not only the largest energy source, it also provides the material for 99% of pesticides (along with the entire industrial agriculture system), all plastics, almost all pharmaceutical drugs and chemicals, and a massive array of other products and components that keep the industrial economy chugging along. But the real killer is that oil literally fuels almost all transportation of materials and people for this system, including 95% of transportation in the US itself, as well as essentially ALL global air and sea transport. There is simply no way to keep this monster running without more and more petroleum.
Now, just because we’re confident that capitalism won’t recover from the current death-blows doesn’t mean a more vicious and destructive system won’t replace it, which is why this article’s conclusions are relevant and necessary. If we’re headed in the US towards fascism – which is where the rich and their Washington cronies seem to want to take us to protect their wealth and power – the only solution, which will become more and more apparent daily, is to organize a massive resistance here in the US that can stop the vampires and build towards a society based on freedom, justice and democracy.
[alex]
SOME TALKING POINTS ON THE FINANCIAL CRISIS
By Kate Griffiths and Isaac Silver
1. The era of the United States as a “the world’s only superpower” is ending.
The United States economy has not been this bad since the Great Depression. The rulers of the US hoped to retain global power militarily, through the wars in Iraq and Afghanistan, as the country’s raw economic superiority slipped. But these wars cannot be won: opposition among the occupied populations, and growing dissent within the military, prevent any victory on US terms even as the death toll climbs.
2. Beginning during the 1970s, manufacturing stalled, while government and investors focused on the financial sector: banks, real estate, and insurance.
Increasing competition, strong unions, and victories of the Black freedom movement had begun to limit the profits made by US corporations and threaten the power of the ruling class. In response, employers shifted good-paying manufacturing jobs overseas and to nonunionized areas of the USA. As wages stagnated, and workers’ purchasing power declined, workers maintained a precarious hold on our livelihood through working longer hours, sending more household members to work, and buying extensively on credit. The globalization of US capitalism and growth of credit both fueled the financial sector, which provided fluid economic resources that could be quickly moved and re-invested – unlike a physical investment such as a factory or railroad.
3. In 2008, years of government policies favoring the rich provoked instability and sparked collapse of major Wall Street institutions.
As the cost of the basic necessities went up, and wages failed to cover them Read the rest of this entry »
Excerpts from Democracy Now!, May 6, 2008.
[Kevin Phillips, author of "Bad Money: Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism", surveys the economic crisis facing U.S.-dominated global capitalism - including peak oil, the collapse of the Dollar, rising food costs, and the growing dominance of the banking and credit industries. This is fairly radical stuff coming from a former GOP strategist.]
AMY GOODMAN: What do you think is one of the most serious signs of this overall global crisis of American capitalism?
KEVIN PHILLIPS: Well, not to single out just one, I have an approach I use to say that normally when a country is—United States is—heading into a recession, there are one or two, sometimes three, factors that you worry about. But at this point in time, the American economy, you can think of it as being kind of in a shark tank, and there are like six or seven sharks, and you don’t usually see anything like that number. Read the rest of this entry »
This week, food riots are erupting in the poorest countries of the world, such as Haiti, where the majority of the population lives on under $2 a day. The protesters are calling for the resignation of their government, for its inability to provide basic necessities to the population. See this BBC News short video.
The price of grains, especially wheat (which has doubled in the past year), has been on a steady uphill trend for the past few years, causing major food shortages across much of the Global South.
(image from BBC)
I want to highlight 4 underlying causes of this global food shortage:
1) Growing Inequality between the wealthiest and poorest people. Greater affluence in industrializing countries is driving larger levels of meat consumption, which requires far more wheat, other grains, and water to be consumed in order to produce the same amount of food. In fact, the majority of grains produced in the world are now fed to animals for meat. Meanwhile, hundreds of millions of people in the Global South are on the brink of starvation, or literally already starving.
2) Global Warming is causing unreliable and chaotic weather patterns across much of the food-producing regions of the world. Arable lands are turning into deserts as droughts worsen, while other regions are flooding with unseasonable downpours. These combine to create massive agricultural loss.
3) Biofuels like ethanol from corn production in the U.S. are quite literally food being used to fuel industry and automobiles. This manifests in driving up the cost of food for everyone, especially the poor, so that the largest agribusiness firms can earn huge profits, and the illusion of American prosperity surrounding large cars and wasteful consumerism can be maintained at all costs.
4) Most fundamental, The Global Oil Production Peak, which took place in 2006, is causing declining supplies of oil while demand surges across the industrial and industrializing world. We have seen a drastic and increasing rise in the price of oil over this period, which most Americans recognize in the high cost of gasoline. But for the poor of the world, a much more dire situation is emerging with food, because oil and other fossil fuels are the sources for most industrial fertilizers and pesticides, and because the modern system of food production and distribution are heavily dependent on oil for transportation, processing, packaging, refrigeration and cooking. In fact, the average American consumes over 10 calories of fossil fuels for every calorie of food eaten! Most people in the world can’t continue to afford this oil subsidy, and the crisis will only deepen as oil production declines in the coming years.
(Image courtesy OILNERGY)
By William M. H. Kötke
13 September, 2007
Countercurrents
The planetary elite are compelled to continue on their path of growth leading toward planetary domination. The international bankers through their control of the industrial world’s privately owned central banks maintain a tether on the money system through their control of the U.S. dollar as the currency of international trade. One important mechanism that allows this is that the largest item in international trade – oil – is sold in dollars. In order to insure the continuance of the dollar economy, they must be able to choose which currency oil is sold for or control the oil – or both. The center of the empire, the U.S., is maintained by debt as the petrodollars and other dollars come into the U.S. at the rate of at least two and a half billion per day (purchasing U.S. government bonds) in order to continue the cycle, which keeps the empire and its military power expanding As the elite carry out their strategies of domination they are racing against time. The monster trends of Peak Oil and energy exhaustion, climate change which will severely disrupt the seasons of growth in the food supply system, the weakness of the dollar and ecological collapse are pursuing them. An exponentially growing world population with growing material consumption based on dwindling resources and a dying planet won’t work, but they have no other option to maintain their power and profit.
Seeds of Change
As the industrial system spins toward exhaustion, seeds of change are sprouting at the base. The people at the base are not revolting in order to take the power that the elite have but are revolting to take power over their own lives. Read the rest of this entry »
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