Best of the Week
Most Popular
1.The Gallery of Crowd Behavior: Goodbye Stock Market All Time Highs - Doug_Wakefieldth
2.Tesco Meltdown Debt Default Risk Could Trigger a Financial Crisis in Early 2015 - Nadeem_Walayat
3.The Trend Every Nation on Earth Is Pouring Money Into - Keith Fitz-Gerald
4.Do Tumbling Buybacks Signal Another Stock Market Crash? - 26Mike_Whitney
5.Could Tesco Go Bust? How to Save Tesco from Debt Bankruptcy Risk - Nadeem_Walayat
6.Gold And Silver Price - Respect The Trend But Prepare For A Reversal - Michael_Noonan
7.U.S. Economy Faltering Momentum, Debt and Asset Bubbles - Lacy Hunt
8.Bullish Silver Stealth Buying - Zeal_LLC
9.Euro, USD, Gold and Stocks According to Chartology - Rambus_Chartology
10.Evidence of Another Even More Sweeping U.S. Housing Market Bust Already Starting to Appear - EWI
Last 5 days
The Colder War: How the Global Energy Trade Slipped From America's Grasp - 30th Oct 14
Don't Get Ruined by These 10 Popular Investment Myths (Part VIII) - 29th Oct 14
Flock of Black Swans Points to Imminent Stock Market Crash - 29th Oct 14
Bank of America's Mortgage Headaches - 29th Oct 14
Risk Management - Why I Run “Ultimate Trailing Stops” on All My Investments - 29th Oct 14
As the Eurozone Economy Stalls, China Cuts the Red Tape - 29th Oct 14
Stock Market Bubble Goes Pop - 29th Oct 14
Gold's Obituary - 29th Oct 14
A Medical Breakthrough Creating Stock Profits - 29th Oct 14
Greenspan: Gold Price Will Rise - 29th Oct 14
The Most Important Stock Market Chart on the Planet - 29th Oct 14
Mysterious Death od CEO Who Went Against the Petrodollar - 29th Oct 14
Hillary Clinton Could Be One of the Best U.S. Presidents Ever - 29th Oct 14
The Worst Advice Wall Street Ever Gave - 29th Oct 14
Bitcoin Price Narrow Range, Might Not Be for Long - 29th Oct 14
UKIP South Yorkshire PCC Election Win is Just Not Going to Happen - 29th Oct 14
Evidence of New U.S. Housing Market Real Estate Bust Starting to Appear - 28th Oct 14
Principle, Rigor and Execution Matter in U.S. Foreign Policy - 28th Oct 14
This Little Piggy Bent The Market - 28th Oct 14
Global Housing Markets - Don’t Buy A Home, You’ll Get Burned! - 28th Oct 14
U.S. Economic Snapshot - Strong Dollar Eating into corporate Profits - 28th Oct 14
Oliver Gross Says Peak Gold Is Here to Stay - 28th Oct 14
The Hedge Fund Rich List Infographic - 28th Oct 14
Does Gold Price Always Respond to Real Interest Rates? - 28th Oct 14
When Will Central Bank Morons Ever Learn? asks Albert Edwards at Societe General - 28th Oct 14
Functional Economics - Getting Your House in Order - 28th Oct 14
Humanity Accelerating to What Exactly? - 27th Oct 14
A Scary Story for Emerging Markets - 27th Oct 14
Could Tesco Go Bust? How to Save Tesco from Debt Bankruptcy Risk - 27th Oct 14
Europe Redefines Bank Stress Tests - 27th Oct 14
Stock Market Intermediate Correction Underway - 27th Oct 14
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans - 26th Oct 14
Obamacare Is Not a Revolution, It Is Mere Evolution - 26th Oct 14
Do Tumbling Buybacks Signal Another Stock Market Crash? - 26th Oct 14
Has the FTSE Stock Market Index Put in a Major Top? - 26th Oct 14
Christmas In October – Desperate Measures - 26th Oct 14
Stock Market Primary IV Continues - 26th Oct 14
Gold And Silver Price - Respect The Trend But Prepare For A Reversal - 25th Oct 14
Ebola Has Nothing To Do With The Stock Market - 25th Oct 14
The Gallery of Crowd Behavior: Goodbye Stock Market All Time Highs - 25th Oct 14
Japanese Style Deflation Coming? Where? Fed Falling Behind the Curve? Which Way? - 25th Oct 14
Gold Price Rebounds but Gold Miners Struggle - 25th Oct 14
Stock Market Buy the Dip or Sell the Rally - 25th Oct 14
Get Ready for “Stupid Cheap” Stock Prices - 25th Oct 14
The Trend Every Nation on Earth Is Pouring Money Into - 25th Oct 14 - Keith Fitz-Gerald
Bitcoin Price Decline Stopped, Possibly Temporarily - 25th Oct 14
Bullish Silver Stealth Buying - 24th Oct 14
Blood in the Streets to Create the Gold Stocks Investor Opportunity of the Decade - 24th Oct 14
Swiss ‘Yes’ and ‘No’ Gold Initiative Campaigns Compete at Launches in Bern - 24th Oct 14
War And The Law Of Unintended Consequences - 24th Oct 14
Tesco Meltdown Debt Default Risk Could Trigger a Financial Crisis in Early 2015 - 24th Oct 14
Saudi Move to Cut Oil Prices Is Now Russia's Biggest Economic Threat - 24th Oct 14
US Stock Market Top Is Now In Sight - 24th Oct 14
New Profit Points in the Shifting Balance of Power, Welcome to Saudi America - 24th Oct 14
QE Failure & Folly Of Paper Mache, Treasury Bond Integrated Lifeline Patches - 24th Oct 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Stocks Epic Bear Market

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.


© 2005-2014 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

Free Report - Financial Markets 2014