Casinos, capitalists and class struggle

The rush of Massachusetts to build casinos and other gambling dens makes me crazy.  The casinos are sold to us as a jobs program - this is almost a pure scam.  It is as if the 1% were to hire a small number of the 99% to construct, and then operate, a gigantic vacuum cleaner, the sole purpose of which was to suck money out of the pockets of the 99%, and deposit it in the bank accounts of the 1%.

Compare this with a genuine jobs bill - the Conyers bill, HR 870, which would tax the 1% (through a small financial transactions tax) and use the proceeds to hire some of the 99% to build and repair things (schools, roads, bridges) that belong to the 99%.

In today's political parlance, the second bill – the genuine jobs bill – is considered class warfare.  Casino construction, which employs some people to better exploit others, is not.  Essentially, "class warfare", for the punditry, is a term used to describe anything that acts effectively to the detriment of one specific class - the ruling class.

Even a casual student of Marx knows that the class struggle is not an option - something one chooses to engage in, or not.  It is an inevitable side effect of a class society.  As long as the economy is structured so that one particular class – feudal landowners, slave-owners, or capitalists – derives its income solely and explicitly by the exploitation of others (aka the workers), then you have a class society, one feature of which will be a struggle over the degree of exploitation.

A Keynesian analysis of a capitalist economy suggests there may be some "sweet spot" for the capitalist class, a level of wages that balances off increased demand and economic activity against a reduced profit margin, so as to maximize the capitalists' overall net income.  But there's no magic way to detect this "sweet spot", and the capitalists' greed is such that they will tend to overshoot when it comes to driving down wages.  Also, manipulating the overall wage rate in the economy, so as to manipulate demand, is beyond the power of most individual capitalists, or even cartels. 

At a given level of output and technology, the individual capitalist can only increase his income by increasing the level of exploitation - his profit.  Any such increase in profit comes directly out of the worker's wages.  So struggle is inevitable.  The only question is whether the workers resist low wages individually (in which case the majority of them are bound to lose), or collectively, through labor unions and political action, in which case they have a chance.  It is this latter form of collective struggle that the right wing insists on calling "class warfare".

A genuine jobs bill, like the Conyers bill, would strengthen the working class, lessen inequality, and make the 99% genuinely better off.  The casino alternative plays some in the working class against others, and its overall effect is to further the impoverishment of the 99% with respect to the 1%. 

Some with in the Occupy movement have started saying "They only call it 'class warfare' when we fight back."  I would add that they only call it "class warfare" when we adopt a strategy that might actually win results.

That’s not the American Dream...

I’ve had people tell me that the so-called “American Dream” is about the idea, however false, that anybody can get rich.  Therefore, they argue, if your politics tries to clip the wings of the very rich, people feel you are choking off their dreams, and they won’t support you.

I won’t deny that there’s some truth to that, and if the issue of class fairness is presented the wrong way, you might get that reaction.  But I don’t think the American Dream is really about the ability to get filthy rich, and I think if you frame your arguments the right way, you can get around this obstacle.

Now, everybody has occasionally fantasized about what it would be like to be just stinking rich.  But I don’t think Americans feel that helping some people to get rich is a matter of justice.  I had to frame that sentence carefully.  If I had said “allowing some people to get rich”, a lot of people would think that was just.  To arbitrarily prevent some people from getting rich, “just because”, would be seen by many of us as simply mean.  But if you frame the question in terms of what others would have to give up for that person to become rich, then people hear a different story.

The American Dream is really about the idea that anybody, maybe even everybody, can do well.  It is about prosperity, not opulence.  You should be amply rewarded for a lifetime of honest work, and if you’re especially clever, or work especially hard, you should have a proportionate increase in your level of well-being.  That just strikes most of us as fair.  You should be secure in your enjoyment of these things.  You should do well enough that you can enjoy a few hobbies, and leisure time with your family.  When you’ve paid your dues for 40 years or so, you should be entitled to a comfortable retirement.  You should also have the right to feel confident that your children, and your children’s children will have the right and ability to enjoy the same comforts and opportunities that you have.  This is what the American Dream really means, to most of us.

What we need to get people to understand is that some people’s ability to become super rich, if it is realized, chokes off this dream of prosperity for the rest of us.  When 1%, 2%, even 10% of the people receive half of the total income produced by society every year, and lay claim to more than 70% of the total wealth, they do this by squeezing it out of our paychecks, out of our public or common goods (parks, roadways, schools), out of our healthcare, our retirement – lately, out of the equity that could have accumulated in our homes.
The vast wealth of the lucky few has been justified to us on the basis that they are somehow the engines of economic growth, that they are “job creators”, that their enormous wealth is somehow necessary for the rest of us to be prosperous.  We have now had nearly two generations of experience to prove that that is a lie; that policies to benefit the super rich not only don’t help the rest of us, but actually do us harm.

Since the mid-1970’s, when neoliberal talk of “job creators” and “trickle down economics” began to take hold, the richest 10% increased their share of national income from about 1/3, where it had held pretty steady since the early 1950’s (and which already meant they made between 4 & 5 times, on average, as much as the rest of us), to reach 50% about 2007.  Did this make the rest of us better off?  Total employment did grow a little, at the beginning of that period, before it crashed at the end of it, but it had been pretty stagnant for nearly a decade before the crash.  And how much of that “expansion” in jobs represented low wage, no benefits “Macjobs”, replacing the good “middle class” jobs that people had lost?  And our sense of security in a prosperous future for ourselves and our children has virtually disappeared. 

Trickle down economics does not, and never has worked.  Many, if not most, of the people who originally espoused it never really believed it would.  It was a convenient lie to justify their rampant looting of the economy.  It’s time we put an end to it.  We must put an end to it, if we are ever to reclaim the real American Dream.

“I have seen good working people, Throughout this mighty land. I’ve prayed we’ll get together, And together take a stand. “Then we’ll own those Banks of Marble, With no guard at any door. And we’ll share those vaults of silver That we all have sweated for.”