Profits Before Babies

The deadly bacteria outbreak in baby formula which resulted in the ongoing formula shortage arose from what some economists characterize as “rot” in the nation’s economic system: prioritization of shareholder wealth and consolidation. 

Biden has invoked the Defense Production Act to speed production of infant formula and authorized flights to import supply from overseas, while the FDA approved a deal with Abbott to bring the Sturgis plant back online within several weeks.

The baby formula producer Abbott used windfall profits to enrich investors instead of replacing failing equipment that was likely injecting the dangerous bacteria into its infant nutritional products, financial records and whistleblower documents show. 

The tainted product triggered a February recall of three popular Abbott infant formulas, including Similac, when batches likely tainted with the rare Cronobacter bacteria killed two infants and sickened two more. The FDA and CDC reported the babies “consumed formula produced at the Sturgis, Michigan” facility before they got sick, and the bacteria “may have contributed” to their deaths.

Abbott detected bacteria eight times as its net profits soared by 94% between 2019 and 2021. And just as its tainted formula allegedly began sickening a number of babies, with two deaths reported, the company increased dividends to shareholders by over 25% while announcing a stock buyback program worth $5bn.

“Abbott chose to prioritize shareholders by issuing billions of dollars in stock buybacks instead of making productive investments,” said Rakeen Mabud, chief economist for the Groundwork Collaborative, a progressive economic advocacy group. “We need to make sure children can get the nutrients that they need – I think we can all agree on that – and these giant corporations … need to be held to account for the vulnerabilities that they’ve created and the quality of the product that they put on the market,” Mabud said.

The federal whistleblower complaint alleged some of the Sturgis plant’s equipment that caused the bacteria to get in the product “was failing and in need of repair”, and company management was aware of the issue for up to seven years ahead of the outbreak.“A number of product flow pipes were pitting and leaving pinholes. This allowed bacteria to enter the system and, at times, led to bacteria not being adequately cleaned out in clean-in-place washes,” the report reads. “This, in turn, caused product flowing through the pipes to pick up the bacteria that was trapped in the defective areas of the pipe.”

The problems are not limited to ageing equipment, according to the whistleblower. Management at the plant also falsified records, improperly trained employees, and successfully hid health and safety risks from the Food and Drug Administration auditors in 2019.

Companies like Abbott are “using every product as a personal ATM” by cutting corners to maximize profits, said Moe Tkacik, a senior fellow at the American Economic Liberties Project.  

Buybacks were illegal until 1982 because they were considered a form of manipulation. Annual buyback program expenditures among S&P 500 companies are often exceeding research and development or other investment, Tkacik said.

Baby formula crisis: Abbott enriched shareholders as factory needed repairs, records show | US news | The Guardian

Further background reading

Baby formula and breastfeeding – World Socialist Party US (wspus.org)

Overpopulation and Climate Change

 


Some in the environmentalist movement have succumbed to ideas that are promoted by the far-right and eco-fascists that population control and immigration restrictions are a solution to the effects of climate change. The attorney general of the US state of Arizona cited environmental protection when he sued the Biden administration for loosening immigration laws, claiming that migrants would use up resources, cause emissions and pollute the environment if they weren’t kept out by a wall with Mexico. Eco-fascists use racist theories to conflate the degradation of the natural environment with the degradation of their culture and their people, added Thomas. They believe that white people, along with the environment, are threatened by non-white overpopulation. Marine Le Pen has invoked climate change and environmental protection in her nationalist campaigns, while the youth wing of Germany’s far-right climate-sceptic AfD party called on the party to embrace climate change as an effective recruitment tool. 

Treating people as the problem isn’t just misguided — it’s dangerous. When concern about population becomes central to environmental policy, “racism and xenophobia are always waiting in the wings.” said Betsy Hartman, former director of the population and development program at Hampshire College and author of ‘Reproductive Rights and Wrongs: the Global Politics of Population Control,’ 

“In this ideology of ‘too many people’ it’s always certain people who are ‘too many,’ ” Hartman said. “It just shifts the discourse away from the real problem of who has power and how the economy is organized.”

 Climate change isn’t caused by population growth. It’s caused by greenhouse gas emissions from burning fossil fuels.

 

“But doesn’t having more people on the planet lead to more fossil fuel consumption, which leads to more emissions?” some over-populationists respond.

 

Not so, Princeton University environmental engineer Anu Ramaswami, an expert on sustainable cities and contributor to the United Nations’ Global Resources Outlook explained. A small minority of wealthy people produce the majority of global greenhouse gas emissions — their consumption habits have a much greater impact than overall population numbers. It’s true that the planet can’t support unlimited population growth, Ramaswami said. But if people can figure out how to moderate our consumption and meet our needs without fossil fuels, experts say, it is possible for all of us to live sustainably and well — even if there are more of us.  Ramaswami said. “Fixating on population decrease doesn’t make much of a difference.” People in the world’s richest countries emit 50 times more than those in the poorest, despite having much slower population growth.


Over-populationists ignore the enormous inequality of wealth existing within every nation, whether thickly or thinly populated. They also ignore that much of the population between 16 and 60 are not engaged in producing wealth at all, but are either idle or are carrying on purely wasteful services called into being by the capitalist system. For them, there are no class divisions in society. They dismiss our contention that nature, contrary to some claims, is sufficiently bountiful for our needs. Many assert that over-population is the cause of modern wars. It is, of course, nonsense. The urge to find markets and sources of raw materials affects every capitalist country, irrespective of population. Is it a “natural” or a “man-made” law which prevents millions of workers from taking possession of the wealth which they create but do not possess? What natural law prevents the workers from enjoying the food and housing reserved for the propertied classes? The amount consumed by members of the capitalist class depends on their ownership of the means of production, which in turn depends on their control of the political machinery of society. There obviously are problems of population, but the problem of working-class poverty is not one of these. That problem cannot be solved by the workers until they have taken possession of the political machinery and re-organised society on a socialist basis.

We all need to eat. We all need homes that are warm in the winter and cool in the summer. We all require to travel. But the economic system can change.

Adapted from

Eco-fascism: The greenwashing of the far right | Environment | All topics from climate change to conservation | DW | 19.05.2022

Finally Justice

 Argentina has found the state guilty of the massacre of more than 400 indigenous people nearly a century ago. The Qom and Moqoit peoples had been protesting inhumane living and working conditions on a cotton plantation when authorities shot them dead in 1924. Until now, no responsibility had ever been officially acknowledged. A judge has now ordered historical reparations to be awarded to the communities.

A judge has now ordered historical reparations to be awarded to the communities.

The Qom and Moqoit peoples in Argentina’s northern Chaco region were living partly-enslaved on a plantation settled by immigrant farmers from Europe. They were underfed, paid with vouchers, taxed for the cotton they harvested and were mostly denied the freedom of movement, the Buenos Aires Times reports, citing court documents.



Many children and elderly people died in the massacre. And those who were wounded and could not escape were killed “in the cruellest form possible with mutilations and burials in common graves,” Judge Zunilda Niremperger said. 



“The massacre provoked grave consequences, [those people] suffered the trauma of terror and were uprooted with the loss of their language and their culture,” Judge Niremperger is quoted as saying.


Argentina found guilty of massacre of Qom and Moqoit people – BBC News

Burning Planet

 


The Indian sub-continent is enduring a scorching heatwave that is breaking all records.

Europe also is suffering the heat. 

Temperatures of “extraordinary intensity” in parts of southern Spain are forecast to exceed 42C on Saturday. 

The state meteorological agency, Aemet, warned that Spain was facing “one of the hottest Mays in this country in recent years”.

Aemet said a mass of hot, dry air is blowing in from Africa, carrying with it dust from the Sahara and “exceptionally high” daily temperatures that are between 10C and 15C above the seasonal average.

Spring heat records have also been broken in France as the country enters its 38th consecutive day of above-normal temperatures, with parts of the south already exceeding 33C and some models predicting temperatures will rise locally to 37C or even 39C by the end of the week, around 17C hotter than the seasonal average.

In Paris, the overnight temperature from Wednesday to Thursday did not fall lower than 20C, the first time that has happened so early in the year in the century and a half since records in the capital began. At 3am, the mercury was still close to 22C.

Météo France said such episodes of extreme heat are likely to become longer and more severe, start earlier and recur more frequently as global heating advances 

Spain braces for heatwave of ‘extraordinary intensity’ | Spain | The Guardian

Australians Squeezed by Higher Prices

 

Across Australia, household budgets are being tightly squeezed, with the cost of living soaring to a 21 year high. 

Although not surging as high as in other countries at 5.1%, Australia’s inflation rate is outstripping wage growth (2.3%) meaning people have less money in their pockets every month.

Australia’s Reserve Bank (RBA) increased interest rates (by 0.25% to 0.35%) for the first time in more than 11 years.

 It is estimated that 300,000 Australians could default on their mortgages as repayments increase.

Australia election 2022: Cost of living worries voters – BBC News

2022 Sunday Times Rich List

 



There were a record 177 billionaires in the UK – six more than in 2021 – according to the Sunday Times Rich List, as the wealthiest figures in the UK grew their combined fortunes by 8% to a record £710billion in just 12 months.

In the 2022 Sunday Times Rich List, billionaire brothers Sri and Gopi Hinduja taking the top spot who run the Mumbai-based conglomerate Hinduja Group, are worth a staggering £28.47billion – an increase of more than £11billion on their fortune last year.

These are the 20 richest people in the UK according to the Rich List:

Sri and Gopi Hinduja and family – £28.47 billion

Sir James Dyson and family – £23 billion

David and Simon Reuben and family – £22.26 billion

Sir Leonard Blavatnik – £20 billion

Guillaume Pousaz – £19.26 billion

Lakshmi Mittal and family – £17 billion

Christoph Henkel and family – £15 billion

Guy, George, Alannah and Galen Weston and family – £13.5 billion

Kirsten and Jorn Rausing – £12 billion

Charlene de Carvalho-Heineken and Michel de Carvalho – £11.42 billion

Michael Platt – £10 billion

Alisher Usmanov – £10 billion

The Duke of Westminster and the Grosvenor family – £9.73 billion

Barnaby and Merlin Swire and family – £9.6 billion

Marit, Lisbet, Sigrid and Hans Rausing – £9.49 billion

Anil Agarwal – £9.2 billion

Denise, John and Peter Coates – £8.64 billion

John Fredriksen and family – £8.31 billion

Mikhail Fridman – £8.22 billion

Moshe Kantor – £8 billion



Billionaire Tax Rates



 According to a new analysis by Americans for Tax Fairness (ATF), under current U.S. law, unrealized capital gains from stocks and other assets are not taxed, allowing billionaires such as Amazon executive chairman Jeff Bezos and Tesla CEO Elon Musk to accumulate massive fortunes tax-free. And even when assets are sold and gains are “realized,” the long-term capital gains tax rate is significantly lower than the top marginal tax rate of 37%.

 ATF estimates that 26 of the richest people in the U.S. paid an average federal income tax rate of 4.8% between 2013 and 2018 when wealth gains are counted as income.

Some prominent billionaires—including Berkshire Hathaway CEO Warren Buffett, Facebook CEO Mark Zuckerberg, and Bezos—paid tax rates of less than 2% during the six-year period, ATF found. The average U.S. taxpayer pays a 13.3% tax rate on their income.

“Teachers, plumbers, firefighters, and other working Americans can already pay higher tax rates than billionaires—and that’s just counting the small part of billionaire income that is now taxed,” Frank Clemente, ATF’s executive director, said in a statement. “When you include their untaxed wealth growth in the calculation, many billionaires pay almost nothing.”

Analysis: 26 US Billionaires Paid Average Tax Rate of Just 4.8% in Recent Years (commondreams.org)

A Cold War mystery: who started the Stalinist purges in Eastern Europe?

 Between 1948 and 1954 hundreds of thousands of people were arrested and interrogated, often under torture, by the secret police in the countries of the Soviet bloc in Eastern Europe. There were show trials and executions. The victims were members of the ruling ‘communist’ parties, including quite a few in prominent positions. In Czechoslovakia alone nearly 170,000 party members were arrested, almost causing the economy to collapse. 

Stalin himself presided over these purges. After Tito’s Yugoslavia broke away from the bloc, he feared that the ‘Titoist’ contagion would spread and other countries would follow Yugoslavia’s example. He was also determined to destroy ‘fifth columns’ in preparation for a possible war with the Western powers. 

However, as George Hodos, a rare survivor of the Rajk trials in Hungary, stresses in his book Show Trials: Stalinist Purges in Eastern Europe (Praeger 1987), most victims were actually loyal Stalinists. Only a few, such as Gomulka in Poland, really had ‘Titoist’ tendencies. If this point is accepted, an explanation of the vast scale of the purges has to rely on a single factor – Stalin’s well-known paranoia.

Or was that paranoia perhaps deliberately exploited by an outside player? Is it possible that while Stalin presided over the purges someone else actually started them? After all, it would not have been the first such provocation. It was disinformation spread by agents of Nazi Germany that triggered Stalin’s disastrous purge of the Red Army’s officer corps in 1937. Could Western secret services have played a similar game at the end of the 1940s?

I first came across this idea in Jo Langer’s memoir Convictions: Memories of a life shared with a good communist (Andre Deutsch, 1979). The ‘good communist’ to whom the author was married was Oscar Langer, who worked as an economist for the Central Committee in postwar Czechoslovakia. The illustration shows the book cover with a photo of the couple. As the purge gathered pace, Oscar tried to warn ‘his friends in the inner circles’ of the harm it was doing:

He hinted at the possibility that the class enemy himself found a field of activity in the very heart of the organization created as a shield. In that case the real saboteurs were those who were arresting good men in key positions to wreck the economy and thereby undermine the confidence of the masses.

Jo Langer

Langer’s warnings fell on deaf ears. He himself was arrested in August 1951 and not released until 1961. He died shortly thereafter.

When I read this I thought it was a clever argument to use, but did not take it very seriously. Recently, however, I read David Talbot’s in-depth personal and political biography of Allen Dulles, who headed the Central Intelligence Agency from 1952 to 1961 and continued to influence its personnel even after his resignation (The Devil’s Chessboard: Allen Dulles, the CIA, and the Rise of America’s Secret Government, HarperCollins Publishers, 2015). Talbot reveals that Langer’s suspicions were fully justified.

Operation Splinter Factor

The CIA’s Operation Splinter Factor began in 1949 when Noel Field, a Quaker relief worker whom Dulles had known during the war, was offered a university teaching position in Prague. He went to Czechoslovakia. Time passed and nothing was heard from him. So his worried wife Herta and brother Hermann went looking for him. They too vanished. In 1950 the Fields’ adoptive daughter, Erica Glaser Wallach, went to make inquiries about them at party headquarters in East Berlin. She vanished in her turn. 

All four had been arrested. Their interrogators demanded to know what connection they had with Allen Dulles and what mission he had given them. They could make no sense of the questions. Unbeknownst to them, the CIA had instructed a double agent high up in the Polish security service to spread the word that Dulles had sent them on secret missions to recruit old acquaintances into a pro-Western spy network. 

The ploy worked beyond the CIA’s wildest dreams. Dulles’ colleague Frank Wisner gleefully reported: 

The comrades are merrily sticking knives in each others’ backs and doing our dirty work for us. 

Talbot

The ‘dirty work’ was to weaken ‘communism’ by sowing suspicion and disarray into the party ranks. 

In 1954, after Stalin’s death, Soviet and East European secret police officials realized that they had been tricked. They apologized to the Fields and sent them home. 

Dulles viewed the naïve people whom he manipulated with withering contempt. He once confided to his sex-partner Mary Bancroft:

I like to watch the little mice sniffing at the cheese just before they venture into the little trap. I like to see their expressions when it snaps shut, breaking their little necks.

Talbot

No doubt Stalin and Beria indulged in similar pleasurable feelings.

‘Communism’ and ‘anti-communism’

The CIA’s ‘dirty work’ was done in the name of the fight against ‘communism.’ For Dulles, as for Lenin and all his successors, supposedly noble ends justified all and any means. 

But what was ‘communism’? What were the key features that made it odious? What ideals inspired its enemies? Which developments within ‘communism’ and in its relations with the outside world were to be regarded as positive and which as negative?

Once we inquire into these questions, we quickly discover concepts of ‘communism’ and ‘anti-communism’ that do not just diverge from but sharply conflict with one another. In particular, we find a chasm between the concepts that actually guide secret agents like Dulles and the concepts that those same agents use in propaganda for the general public. 

In the propaganda the key features that make ‘communism’ odious are the arbitrary power of a dictator or narrow ruling group and the denial of freedom (of speech, association, religion, travel, etc.). The propaganda therefore equates ‘anti-communism’ is with democracy, human rights, and the rule of law. 

This contrast is a superficially plausible — but only if we confine our focus to Europe since 1945, overlooking the experience of fascism as well as such episodes as the ‘regime of the colonels’ in Greece (1967–74). Once we turn our gaze to other parts of the world, we find numerous instances of the CIA overthrowing democracies and replacing them with military or royal dictatorships. Dulles and his cronies soon graduated from playing with ‘mice’ in Eastern Europe to overthrowing the democratically elected governments of Mossadegh in Iran (1953), Arbenz in Guatemala (1954), and Lumumba in the Democratic Republic of the Congo (1960) – all three operations described in detail by Talbot. Later it would be the turn of many other countries, including Brazil (1964), Indonesia (1965), Ghana (1966), Chile (1973), and Haiti (2004).

For capitalist functionaries like Dulles, the key feature that makes ‘communism’ hateful is its disrespect for the property rights of the wealthy, especially when Americans are affected. This is the sole issue they really care about. That is why they lump together all advocates of dispossessing the wealthy as ‘radical’ or ‘extreme’ leftists, ignoring the huge differences with regard to the kind of new society to be created. Any future in which they themselves no longer occupy a privileged position is of no interest to them.   

Thus, in contrast to the ‘mice’ with their naive belief in democracy and human rights, CIA agents did not welcome the prospect of greater autonomy for the countries of Eastern Europe or de-Stalinization in general. Nor would they welcome Dubcek’s ‘socialism with a human face’ or Gorbachev’s perestroika and ‘new political thinking.’ As Talbot notes, they took a negative view of any development that might have made ‘communism’ less unpopular and therefore stronger and more stable. In practice, they aligned themselves with the Stalinists. 

Conclusion 

That the CIA played a significant role in the Stalinist purges in Eastern Europe seems to me beyond reasonable doubt, even though we are not – and never may be — in a position to assess just how significant, due to the paucity of accessible sources. It is unfortunate that Erica Wallach’s memoir (Light at Midnight, Doubleday 1967) is almost out of print. 

Unfortunately, Operation Splinter Factor has not been incorporated into standard historical accounts of the period. Few specialists in the history of Eastern Europe are also familiar with the history of the CIA. Anyway, it is not exactly ‘respectable’ for an academic historian to drag dirty secrets of Western intelligence into the light of day. 

So anyone who values historical truth owes a great debt to David Talbot. 

Stephen Shenfield

World Socialist Party of the United States

The Real World War

 



Prof Petteri Taalas, the  UN World Meteorological Organization (WMO) secretary general, said: “Our climate is changing before our eyes. Human-induced greenhouse gases will warm the planet for many generations to come. Some glaciers have reached the point of no return and this will have long-term repercussions in a world in which more than 2 billion people already experience water stress.

“Extreme weather has the most immediate impact on our daily lives,” he said. “We are seeing a drought emergency unfolding in the Horn of Africa, recent deadly flooding in South Africa and the extreme heat in India and Pakistan. Early warning systems are critically required to save lives yet these are only available in less than half of WMO’s 187 member nations.” 

The world’s oceans absorb more than 90% of the heat trapped by greenhouse gases and 2021 set a record. The increasing warmth in the ocean, which is irreversible over timescales of centuries to millennia, has been especially strong in the last 20 years. Much of the ocean experienced at least one strong marine heatwave in 2021, the WMO said. The global sea level also reached a new record high in 2021. It has increased by 10cm since 1993 and the rise is accelerating, driven by the melting of ice sheets and glaciers and the thermal expansion of the ocean. The rise imperils hundreds of millions of coastal dwellers, the WMO said, and increases the damage caused by hurricanes and cyclones. Almost a quarter of CO2 emissions are absorbed by the oceans, but this causes them to become more acidic. This threatens shell-forming wildlife and corals and therefore food security, tourism and coastal protection, the WMO said. The oceans are now more acidic than for at least 26,000 yearsCO2 and methane, a powerful greenhouse gas, are at record levels, with CO2 concentration 50% higher than before the Industrial Revolution sparked the mass burning of fossil fuels. The global temperature in 2021 was 1.1C above the pre-industrial average, moving closer towards the 1.5C limit agreed by the world’s nations to avoid the worst climate impacts.

The WMO noted exceptional heatwaves in 2021 in western North America and the Mediterranean, deadly flooding in Henan, China, and western Europe, and rain being recorded for the first time on the summit of Greenland’s ice sheet. The agency warned eastern Africa is facing a high risk of rains failing for a fourth consecutive season, meaning the worst drought in 40 years.

“Today’s State of the Climate report is a dismal litany of humanity’s failure to tackle climate disruption. Fossil fuels are a dead end – environmentally and economically,” said António Guterres, the secretary general of the UN. “The only sustainable future is a renewable one…”

Prof James Hansen, said this week, there was “a spectacular, continuing failure of governments to adopt effective long-term energy and climate policies.

“We must all be aware that demands for effective policies will yield only superficial change as long as the role of special interests in government remains unaddressed.”

Critical climate indicators broke records in 2021, says UN | Climate crisis | The Guardian