Best of the Week
Most Popular
1.The Trump Reset, US Empire's Coming Economic, Cyber and Military War With China (2/2) - Nadeem_Walayat
2.Now Is the Time to Buy Gold - 5th Jan 17 - John Grandits
3.CIA Planning Rogue President Donald Trump Assassination? Elites "Manchurian Candidate" Plan B - Nadeem_Walayat
4.The Trump Reset - Regime Change, Russia the Over Hyped Fake News SuperPower (Part1) - Nadeem_Walayat
5.Most Popular Financial Markets Analysis of 2016 - Stock Market Crash Postponed Again - Nadeem_Walayat
6.No UK House Prices Brexit Crash 2016 Despite London Weakness, Forecast 2017 - Nadeem_Walayat
7.President Trump Understands the NSA, CIA... LIE, America's Intelligence Agencies Crime Syndicate! -Nadeem_Walayat
8.President Donald Trump's 2017 New Year Message, BBC Fake News, Was 2016 a Dream? - Nadeem_Walayat
9.Major Stocks Bear Market Still Looms - Zeal_LLC
10.Biased 2017 Forecasts - Debt, Housing and Stock Market (1/2) - James_Quinn
Last 7 days
United States Common Sense - 2017 - 23rd Jan 17
Is Dow 20,000 a Bridge Too Far? - 23rd Jan 17
The New Gold Rush Of 2017! - 23rd Jan 17
HBO HOMELAND Bet on HIllary Clinton Winning US Election and LOST - 23rd Jan 17
Stock Market New Highs For 2017? Yes, But When Do I Enter? - 22nd Jan 17
Active vs Passive Investing: And the Winner Is ... - 22nd Jan 17
The Epidemic of Bad Ideas - 22nd Jan 17
Gold Futures Prices Looking Bullish - 22nd Jan 17
Time for Crude Oil Price Drop below $50? - 21st Jan 17
AI and Robotics - We Are All Low-Skilled Workers Now - 21st Jan 17
The Trump RESET Starts on US Presidential Inauguration Day 2017 - What to Expect - 20th Jan 17
Will the CIA Assassinate Rogue President Donald Trump Like JFK? - 19th Jan 17
Bonds, Dollar, Stocks, Gold, Silver Major Markets at Turning Points - 19th Jan 17
Populism; the Danger? What About Debt? - 19th Jan 17
Gold Price 50-DMA Breakout - 19th Jan 17
Turkey, 'Axis of Gold' and End of US Dollar Hegemony - 19th Jan 17
The Most Important Market Chart on the Planet - 19th Jan 17
Trump Deficits Will Be Huge - 19th Jan 17
Stock Market Trading Patience Pays Off with CHK Using Momentum Reversals - 19th Jan 17
Gold - How to "Buy Low and Sell High" Like a Pro - 19th Jan 17
State of the Global Stock, Financial and Commodity Markets Report 2017 - 19th Jan 17
The Hunt for Russia's Next Enemy - 18th Jan 17
Returning Gold Bulls - 18th Jan 17
Biotech Breakthrough Could Create A $11.4 Trillion Opportunity - 18th Jan 17
Bitcoin and Gold - Outlook, Volatility and Safe Haven Diversification - 17th Jan 17
Stock Market Uptrend on Borrowed Time - 17th Jan 17
The One Stock to Retire On - 17th Jan 17
Trump anti-Communist Counter Revolution - 17th Jan 17
US Stock Market Update as the Trump Inauguration Approaches - 17th Jan 17
The American Crisis - Common Sense 2017 - 17th Jan 17
Obama Leaves, Hope Arrives, Will Stupid Stay? - 17th Jan 17
Damage Inflicted by Precious Metals Manipulation Is in the “Multi Billions” - Keith Neumeyer - 17th Jan 17
Gold Price Forecast 2017 Update - Video - 17th Jan 17
The Story of the U.S. Regime Change Plan in the Philippines - 16th Jan 17
Gold Price 2017 Trending Towards $1375 as Forecast - 16th Jan 17
'Deep State' CIA Director States We are Not NAZI's, Warns Trump Does Not Understand Russian Threat - 15th Jan 17
UK House Prices Forecast 2017 - Crash or Bull Market? - Video - 15th Jan 17

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

State of Global Markets 2017 - Report

Detroit Bankruptcy and the Drive Toward Dictatorship

Politics / US Politics Aug 04, 2013 - 07:27 PM GMT

By: Barry_Grey

Politics

The bankruptcy of Detroit is being widely cited in the media as a model for the use of unelected officials and bankruptcy courts to rip up agreements and impose sweeping cuts on the pensions and health benefits of public employees, not only in Detroit, but in cities across the United States.

The Obama administration has rejected any federal aid to ameliorate the financial crisis of Detroit and counter the effort of state and city officials, fronting for the banks and bondholders, to use bankruptcy to gut workers’ benefits. This makes it clear that the Detroit bankruptcy is part of a broader nationwide policy that is being coordinated by the White House.


The attack on public workers is increasingly accompanied by claims that the crisis of Detroit demonstrates the unviability of democratic procedures, including elections. The financial collapse of the former center of global auto production is not, according to multiple commentators, an expression of the decay of American capitalism, but rather of a “failure of governance,” which can be reversed only by more authoritarian forms of rule and more direct political control by the banks and corporations.

The ruling class is well aware that its economic policies will provoke mass social opposition. It is preparing to meet this threat by means of repression and violence.

The current issue of Time magazine features a front-page photo of Detroit’s Renaissance Center with the headline “Is Your City Next?” The magazine notes that the bankruptcy of Detroit “will bring many changes in the way local governments function and cities grow.”

It continues: “While the broader re-rating of municipal debt that’s very likely to happen down the pike would increase borrowing costs and reduce the amount of money all cities can raise through bond issuance, it might also prompt many to shift their growth models, rein in unsustainable labor costs and partner in more innovative ways with the private sector…”

The same theme is taken up by the British Economist, which writes that Detroit is a “flashing warning light on America’s fiscal dashboard,” and adds that “many other state and city governments across America have made impossible-to-keep promises to do with pensions and health care.”

Financial Times commentator John Dizard writes that the gutting of workers’ benefits at the state and local level will become the model for the dismantling of Social Security. “The Supreme Court has already ruled that social security benefits, unlike Treasury bills and bonds, are not full faith and credit obligations of the federal government,” he writes. “Constitutional lawyers already know this; soon members of the public will as well.”

That such attacks cannot be imposed by democratic means is the subject of a growing number of commentaries. The Financial Times writes: “Think of it this way: what are the chances that the contestants in the next congressional or presidential elections would ask the voters to decide if pension and health care promises made by governments are super-priority debts? Because that is what ‘Detroit’ is all about.”

The authoritarian message obliquely hinted at in such commentaries is stated in blunt and savage terms by right-wing columnist George Will in an op-ed piece published Wednesday in the Washington Post entitled, “Detroit’s death by democracy.”

Will compares government employee unions to parasitic ichneumon fly larva that gnaw the inside of the caterpillars they infest. In his venomous hatred of the working class, he falsely equates the unions with the workers. In reality, the unions have been working hand in glove with corporations and the government for nearly four decades to impose wage cuts and concessions on the working class in Detroit and across the country. They have made clear that they are more than willing to collaborate in slashing pensions, asking only that their flow of income from union dues be assured.

Will unabashedly blames the people of Detroit for the attacks that have been leveled against them. He denounces the “myth” that deindustrialization undermined the city’s economy. “Detroit… died of democracy,” he writes, indicting the people for electing corrupt and incompetent officials.

In fact, Detroit’s crisis is an expression of the crisis and decay of American capitalism, which has been marked by the dismantling of manufacturing on the one hand, and the proliferation of financial parasitism, plundering and outright criminality on the other. Between 1972 and 2007, Detroit lost 80 percent of its manufacturing and tens of thousands of decent-paying jobs.

And while unlimited funds are made available to bail out the banks and protect the wealth of the richest one percent, the universal claim is that there is “no money” for jobs, pensions, health care or education.

Will personifies the intersection of the economic crisis and definite class interests. He is the embodiment of a highly privileged and wealthy social layer that supports the complete impoverishment of the working class and the imposition of dictatorship to accomplish it.

“At the decline of capitalism,” wrote Leon Trotsky, “the bourgeoisie is forced to resort to methods of civil war against the proletariat to protect its right of exploitation.”

Hence the erection of the infrastructure of a police state, in the form of massive and illegal surveillance programs, the militarization of police forces, the policy of extralegal drone assassinations, and the persecution of those who expose government secrets and crimes such as Bradley Manning, Edward Snowden and Julian Assange.

This is what the capitalist system has to offer: mass poverty, ever-greater inequality, and dictatorship. The only force that can oppose these attacks is the working class, fighting as a politically conscious and united force on the basis of a socialist program.

By Andre Damon and Barry Grey

World Socialist Web Site

Barry Grey is a frequent contributor to Global Research. Global Research Articles by Barry Grey

© Copyright Barry Grey , Global Research, 2013

Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Centre for Research on Globalization. The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible or liable for any inaccurate or incorrect statements contained in this article.


© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife