Author: ajohnstone

Capital Accumulation and its Consequence

 


Capitalism favors profit over the ecological integrity of the land that provides the resources for production, and treats the environment as a dumping ground for byproducts and waste. Capitalism is the driving force of ecological destruction. Carbon emissions already released into the atmosphere will continue to warm the planet for years to come. Although a certain level of climate change is guaranteed, it is still possible, through radical action in the coming decade, to give our descendants a better chance at a decent life: to lessen the possibility that they will inherit the hell-scape environment we currently are on course for. The way to solve the environmental emergency, of which climate change is only one aspect, is to replace capitalism with a different social and economic model. Its foundations is a grow-or-die system. Capitalism is threatening the future of humanity.

Capital accumulation creates profits for a small percentage of the population instead of the vast majority of us who do the work to make those profits possible. This has resulted in a system in which eight men have as much wealth as the 3.6 billion people that make up half the world.  

Leading the pack is Elon Musk whose wealth is up by triple digits, $127 billion, in just one freaking year. His gain alone would be good enough to make him the world’s third wealthiest individual after Bezos and Gates. His net worth is now $155 billion.  If Musk continues on the path he has been on during the year, he will soon be number one, and could be the first to reach a trillion. On a typical single day in 2020, Musk’s wealth increased by almost $348 million which comes to $14.5 million every hour, $241,628 every minute, or $4,027 every second.

The total gains of the 1%, as of the third quarter of 2020, came to $1.47 trillion. The net gains of the wealthiest big 10 alone are 21.7% of the entire gain of the roughly 3.3 million wealthiest in the USA. Those holding positions 11-20 have wealth of about half the amount of the top 10, $502.2B, with gains for the year so far of almost $54.9 billion, a figure that would be $70 billion when excluding their colleagues who lost wealth. The total wealth of the top twenty comes in at $1.544 trillion. This amount represents 65.4% of the total wealth of the poorest half of the U.S. population who, as of the end of the third quarter of 2020, held wealth worth $2.36 trillion. The wealth of the 10 wealthiest individuals comes to 44% of the wealth of the poorest 50%, roughly 165.5 million people.







Don’t be Blind to Biden

 



Much of the media concentrates its attention upon Biden’s capability to “heal” America after the divisiveness of Trump’s reign in the White House and the “coming together” really of America means an end to the internecine war-fare between sections of the ruling class and a return to the bipartisan duo-poly, rather than the ending the racial friction and the anti-migrant demagoguery. It means re-positioning America’s foreign affairs to represent the the overall interests of the Wall St corporations better. While protesters on the street call for de-funding the police, CEOs want the United States to act as the world’s policeman without the inconsistent and idiosyncratic direction to promote Trump personal political position. Across the world, America has lost its legitimacy in the eyes of the international capitalist class. Biden is now their great hope to revive America’s prestige.

Biden’s platitudes and his cabinet appointments indicate a return to an Obama corporate-friendly administration to re-assure investors that the economy is in a safe pair of trusted hands. It is “business as usual”, a return to normalcy. The threat of any sort of radical alternative has been averted. The Democratic Party is the political subsidiary of the ruling class and now a company-man is back in charge. Biden’s principle role is to heal what ails the ruling system at the expense of the working people without them being aware that thy are being sacrificed for the “greater good” of their masters. Biden will carry out policies on behalf of his own masters to inflict austerity and a race to the bottom to bring back profits for the capitalist class, and not just the few billionaires such as Bezos. It is not accidental that Biden’s incoming cabinet is dominated by corporate-operatives who will do the right thing by their masters. It is wishful thinking to believe the leopard has changed its spots. Biden’s cabinet picks have already revealed how forlorn were the hopes of lesser-evil apologists. It is Obama re-packaged and re-branded to sell to the American worker.

The United States needs socialism. And not Bernie Sanders-style “socialism” but the real thing and it certainly won’t be achieved by the likes of AOC or “the Squad.” In these times of the pandemic which has shown that the shared welfare of all communities and all countries must be served there is no better time than to advocate the case for socialism, a cooperative commonwealth. It is no longer free healthcare that is an issue, but free food, free housing, free education, free utilities and free transport, just to mention a few needs of the people which require to be satisfied. The coronavirus has exposed capitalism as a diseased economic system. Focusing  the lives and well-being of human beings, instead of the production of profits, makes for a better world.

Sometimes it takes a crisis to see clearly.

The Pain of Palm Oil

Palm oil is contained in roughly half the products on supermarket shelves and in almost three out of every four cosmetic brands, though that can be hard to discern since it appears on labels under more than 200 different names.  It’s a primary fat in infant formula. And as they grow, it’s present in many of their favorite foods: It’s in their Pop-Tarts and Cap’n Crunch cereal, Oreo cookies, KitKats, Magnum ice cream, doughnuts and even bubble gum. Palm oil, the highest-yielding vegetable oil, is an important part of Malaysia’s and Indonesia’s economies and the governments bristle at any form of criticism, saying the industry plays an important role in alleviating poverty. They have banned products touted as “palm oil-free” from supermarket shelves and created slogans calling the crop “God’s gift.”

 Child labor has long been a dark stain on the $65 billion global palm oil industry. Though often denied or minimized as kids simply helping their families on weekends or after school, it has been identified as a problem by rights groups, the United Nations and the U.S. government. More and more consumers are demanding to know the provenance of the raw materials in the products they purchase, many companies are quick to issue assurances that they are committed to “sustainable” sourcing. But supply chains often are murky – especially in the palm oil industry – and developing countries that produce commodities in large volumes cheaply often do so by disregarding the environment and minimizing labor costs.

Indonesian government officials said they do not know how many children work in the country’s massive palm oil industry, either full or part time. But the U.N.’s International Labor Organization has estimated 1.5 million children between 10 and 17 years old labor in its agricultural sector. Palm oil is one of the largest crops, employing some 16 million people. In neighboring Malaysia, a newly released government report estimated more than 33,000 children work in the industry there, many under hazardous conditions – with nearly half of them between the ages of 5 and 11. The study was conducted in 2018 did not directly address the large number of migrant children without documents hidden on many plantations in its eastern states, some of whom have never seen the inside of a classroom.

An official estimate says 80,000 children of illegal migrants, mostly from Indonesia and the Philippines, are living in Malaysia’s state, Sabah, alone, but some rights groups say the true number could be nearly double that. Without birth certificates and with no path to citizenship, they are essentially stateless – denied access to even the most basic rights, and at high risk of exploitation. Children of migrant parents grow up living in fear they will be separated from their families. They try to remain invisible to avoid attracting the ever-watchful eyes of police, with some keeping backpacks with supplies ready in case they need to flee their houses and sleep in the jungle to avoid raids. Many never leave their remote guarded plantations.

With little or no access to daycare, some young children follow their parents to the fields, where they come into contact with fertilizers and some pesticides that are banned in other countries. As they grow older, they push wheelbarrows heaped with fruit two or three times their weight. Some weed and prune the trees barefoot, while teen boys may harvest bunches large enough to crush them, slicing the fruit from lofty branches with sickle blades attached to long poles. In some cases, an entire family may earn less in a day than $5.

“For 100 years, families have been stuck in a cycle of poverty and they know nothing else than work on a palm oil plantation,” said Kartika Manurung, who has published reports detailing labor issues on Indonesian plantations. “When I … ask the kids what they want to be when they grow up, some of the girls say, ‘I want to be the wife of a palm oil worker.’”

Dan Strechay, the  Roundtable on Sustainable Palm Oil’s global outreach and engagement director, said many parents in Indonesia and Malaysia believe it’s the “cultural norm” for their kids to work alongside family members, even if it means pulling them out of school.

Some companies in Indonesia provide rudimentary elementary schooling on plantations, but children who want to continue their studies may find they have to travel too far on poor roads or that they can’t afford it. In Malaysia, the problem is even bigger: Without legal documents, tens of thousands of kids are not allowed to go to government schools at all.

“Why aren’t companies playing a role in setting up schools in collaboration with the government?” asked Glorene Das, executive director of Tenaganita, a Malaysian nonprofit group concentrating on migrant issues for more than two decades. “Why are they encouraging the children to work instead?

Medical care also is woeful, with experts saying poor nutrition and daily exposure to toxic chemicals are undermining child laborers’ health and development. Many Indonesian plantations have their own basic clinics, but access may be available only to full-time workers. Travel to a private doctor or hospital can take hours, and most families cannot afford outside care. Migrant children without documents in Malaysia have no right to health care and often are too scared to seek medical help in villages or cities – even in life-threatening emergencies. Many young palm oil workers also have little understanding about reproductive health. Girls working on remote plantations are vulnerable to sexual abuse, and teenage pregnancies and marriages are common.

Child labor in palm oil industry tied to Girl Scout cookies (apnews.com)

The Persecution of Julian Assange

  Judge Vanessa Baraitser is going to deliver her verdict on the extradition of Julian Assange by the United States on January 4.  He has published secret information of a government known as the Wikileaks that he has not been employed by, that he has no obligations towards. And he has not stolen the information himself. It was leaked to him by someone who had access to the information. And he published it because it was in the public interest to publish it. Now if the US has its way he will stand trial for espionage. But in essence, the American government is trying to criminalize investigative journalism. 

The details that Assange made public contained clear evidence for corruption, war crimes and other criminal conduct. National security defendants in the US don’t receive what many would consider a fair trial. They’re being tried behind closed doors based on secret evidence, that the defense has no access to and by a jury that is inherently biased, because they’re selected from a population the majority of which is government friendly around Washington, DC.  No national security defendant has ever been acquitted.

If very likely Julian Assange is found guilty he will be imprisoned under a special detention regime, which is called special administrative measures, which essentially means total isolation for years: You can’t speak to anybody. Even if you’re let out for 45 minutes a day to have a walk, you’re being let out from one concrete box to another concrete box where you’re alone walking in circles. This type of detention regime clearly amounts to torture and other cruel, inhuman or degrading treatment. That is the opinion of Amnesty International and other human rights organizations.  

Already Julian Assange while on remand in the UK has been in solitary confinement for all intents and purposes for more than a year now. Contrast this with the treatment of  Augusto Pinochet, the former dictator of Chile was in extradition detention in London for 18 months. He was not put in a high-security prison, but accommodated in a comfortable villa under house arrest. 

Natural Disasters – Worse to Come

 



Socialism does not claim it will end all natural disasters but it does say such a cooperative sciety would minimise and mitigate the effects of natures calamities.

Capitalism tends to classify such events in money terms, socialists look at them from the viewpoint of the human tragedies. Millions of people have had to cope with the impacts of extreme weather events. Researchers say that the influence of climate change on extreme events is strong and likely to continue growing

In 2020 floods in China and India causing damages of more than $40bn.

 Over a period of months, heavy flooding in India saw more than 2,000 deaths with millions of people displaced from their homes. The value of the insured losses is estimated at $10bn.

China suffered even greater financial damage from flooding, running to around $32bn between June and October this year. The loss of life from these events was much smaller than in India.

In the US, record hurricanes and wildfires, caused some $60bn in losses.

Africa was also on the receiving end of extreme events, with massive locust swarms ruining crops and vegetation to the tune of $8.5bn. The UN has linked these swarms to climate change, with unusually heavy rains in the Middle East and the Horn of Africa in recent years contributing to the locust outbreaks.

South Sudan’s floods weren’t among the costliest in dollar terms, they have had a huge impact, killing 138 people and wiping out this year’s crops.

Europe also saw significant impacts when Storm Ciara swept through Ireland, the UK and several other countries in February. It resulted in 14 lives being lost and damages of $2.7bn.

Cyclone Amphan struck the Bay of Bengal in May and caused losses estimated at $13bn in just a few days.

“We saw record temperatures in the Arabian Sea and Bay of Bengal, straddling between 30C-33C,” said Dr Roxy Mathew Koll, a climate scientist at the Indian Institute of Tropical Meteorology in Pune. “These high temperatures had the characteristics of marine heat waves that might have led to the rapid intensification of the pre-monsoon cyclones Amphan and Nisarga,” he said 

Richer countries have more valuable properties, and on the whole suffer greater financial penalties from extreme events.

Dr Sarah Perkins-Kirkpatrick, from the Climate Change Research Centre at the University of New South Wales in Australia, explained, “We have seen all this with a 1C of global average temperature rise, highlighting the sensitive relationship between average conditions and extremes.” She went on to say, “Ultimately, the impacts of climate change will be felt via the extremes, and not averaged changes. Unfortunately, we can expect more years to look like 2020 – and worse – as global temperatures creep higher.”



2021 is likely to bring a similar story of losses from extreme events.


Climate change: Extreme weather causes huge losses in 2020 – BBC News

The Pandemic’s Problems

 Overcrowded housing has helped to spread Covid-19 in England and may have increased the number of deaths, according to research by the Health Foundation.

People living in cramped conditions have been more exposed to the coronavirus and were less able to reduce their risk of infection because their homes were so small, the thinktank found. Overcrowding was a key reason why poorer people and those from ethnic minority backgrounds in particular had been disproportionately affected by the pandemic, it said. Health Foundation researchers also concluded that overcrowding, together with other housing problems such as damp and insecure tenancies, had led to a rise in physical and mental health ailments.

“While some have weathered lockdown in large homes with gardens and plenty of living space, others have struggled in overcrowded and unsafe conditions. Overcrowding is associated with the spread of Covid-19, making self-isolation more difficult and allowing the virus to spread through more people if one becomes infected.” Adam Tinson, a co-author of the analysis and a senior analyst at the thinktank, explained.

 In March, 830,000 households in England were overcrowded, especially rented properties. That was 200,000 more than the number in that situation a decade earlier.

“People’s housing environments have affected their ability to shield themselves and others from Covid-19. People have been encouraged to stay in their homes as much as possible, but within-household transmission has played a serious role in the spread of the virus,” the analysis says. “Overcrowding, which has been increasing in the years prior to the pandemic, makes it harder to self-isolate and shield, and may have contributed to higher death rates in poorer areas.”

8% of households with the lowest income lived in overcrowded homes, compared with fewer than 1% of those with the highest earnings. Similarly, Ethnic minority households are five times more likely to be overcrowded than white households.

“… illustrating just one of the ways in which existing housing disparities are combining with the pandemic to further widen inequalities in health.”

People being forced to spend more time in overcrowded homes during this year’s various lockdowns has also caused or worsened mental health problems, especially those suffering distress. “Distress is generally higher for overcrowded households, and data from the pandemic period seem to show this intensifying during the more severe lockdown in April 2020, when 39% of people in overcrowded households were indicating psychological distress”, compared with 29% of those whose homes were not overcrowded, the analysis concludes.

“This analysis shows that mental ill-health has been a particular issue for those in overcrowded households during the pandemic, especially in the first lockdown. The chronic lack of affordable housing options, combined with years of reductions in support for housing costs, have led us to this point,” said Tinson.

The restrictions on movement and social mixing had also deepened loneliness among those living alone, the report said.

The coronavirus crisis poses the greatest threat to mental health since the second world war, with the impact to be felt for years after the virus has been brought under control, the country’s leading psychiatrist, Dr Adrian James, the president of the Royal College of Psychiatrists, warned.

 A combination of the disease, its social consequences and the economic fallout were having a profound effect on mental health that would continue long after the epidemic is reined in. As many as 10 million people, including 1.5 million children, are thought to need new or additional mental health support as a direct result of the crisis.  About 1.3 million people who have not had mental health problems before are expected to need treatment for moderate to severe anxiety, and 1.8 million treatment for moderate to severe depression, it found.

Cramped housing has helped fuel spread of Covid in England – study | Coronavirus | The Guardian

Covid poses ‘greatest threat to mental health since second world war’ | Society | The Guardian

Cream for the big cats

 The UK’s largest financial firms have handed their board members a near-80% pay rise since 2009.

Median pay for the three highest earning non-executive directors (NEDs) in each of the FTSE 100’s 17 financial firms surged from £90,700 in 2009 to £162,000 in 2019.

Board members overseeing the UK’s largest banks, insurance and investment firms are earning 79% more than they did a decade earlier, despite being in part-time roles.

The largest increases have been at Lloyds Banking Group, where top NEDs are earning 257% more than in 2009; the London Stock Exchange Group, where there has been a 219% rise; and investment platform Hargreaves Lansdown, where fees have jumped 170%.

The median number of meetings now sitting at 26. The busiest among them sat through 48 meetings last year.

 The High Pay Centre said some board members were already earning more than 99% of the UK workforce, despite committing just a fraction of the hours.

“Many financial services firms paying six-figure sums to their NEDs will also have low-paid staff in branches, call centres or administrative roles struggling to make ends meet,” Luke Hildyard, the director of the High Pay Centre thinktank, said.

UK’s biggest financial firms have given boards near-80% pay rise since 2009 | Business | The Guardian

Socialist Sonnet No. 13

 A Christmas Fancy

 

There’s those who don’t believe in Santa Claus,

Yet past folk had King Winter visit them

Long, long before the star in Bethlehem.

Then, later, riding through the snows

Came Jul astride eight legged Sleipner, blue cloaked

And gifting the good. After Senlac Hill

Lord Christmas went from castle to hovel,

While Tudor winter revels in log smoked

Halls were in the charge of Captain Christmas.

Even the Lord Protector’s severe ways

Were subverted by the mumming plays

When Old Father Christmas first made his pass.

And Santa? He brooks no borders so he

Can bring to each his need, and all for free.

 

D. A.

 

 

 

Wealth inequality

 Information comes from a 2020 Credit Suisse Global Wealth report reveals that:

 The top 1% of households globally own 43% of all personal wealth while the bottom 50% have only 1%. 

 The 1% are all millionaires in net wealth (after debt) and there are 52m of them. 

 Within this 1%, there are 175,000 ultra-wealthy people with over $50m in net wealth.

That’s a minuscule 0.1% owning 25% of the world’s wealth!

 The Credit Suisse global wealth report analyses the household wealth of 5.2 billion people across the globe. Household wealth is made up of the financial assets (stocks, bonds, cash, pension funds) and property (houses etc.) owned.  And the report measures this, net of debt. 

Most shocking is the still huge inequality of household wealth globally as shown by the wealth pyramid 


At the apex of the wealth pyramid, the report estimates that at the start of this year there were 175,690 ultra-high net worth (UHNW) adults in the world with net worth exceeding US$50 million.

At the end of 2019, North America and Europe accounted for 55% of total global wealth, with only 17% of the world adult population. In contrast, the population share was three times larger than the wealth share in Latin America, four times the wealth share in India, and nearly ten times the wealth share in Africa.

Wealth differences within countries are even more pronounced. The top 1% of wealth holders in a country typically own 25%–40% of all wealth, and the top 10% usually account for 55%–75%. At the end of 2019, millionaires around the world – which number exactly 1% of the adult population – accounted for 43.4% of global net worth. In contrast, 54% of adults with wealth below US$10,000 (i.e. pretty much nothing)  together mustered less than 2% of global wealth.

1% own 43% of global wealth, while billions have no wealth at all – Climate & Capitalism (climateandcapitalism.com)