“Levers
of Power – How
the 1% Rules and What the 99% Can Do About It,” by K. Young, T. Banerjee and M.
Schwartz, 2020
The
essential point of this sociological study is to refute the idea that U.S.
politicians or public opinion are the key ‘levers’ that left mass movements
need to focus on in order to get substantive change. Quoting MLK, they argue that “…because
really, the political power structure listens to the economic power structure.” Their notion is grounded in the dominance of corporate
capital in the U.S. So they argue for constant pressure and
disruption against corporations and key state entities like the military and
police, not pleas or votes for politicians or pleas to the media.
Their
analysis focuses on the Obama years when financial ‘reform,’ health ‘reform,’
and climate change were the 3 major issues.
These processes were controlled for the most part by corporate and Wall
Street power. In the first, the Dodd-Frank
rules omitted certain significant options like nationalization, then ‘capital
ratios’ and oversight were watered down, then later challenged and are now
acceptable to a hugely-profitable and larger Wall Street. In the second instance regarding the Affordable
Care Act (ACA) the same process happened, with a public option or
single payer being ruled out. Costs were
unconstrained, with shortfalls covered by government funding for the poor. Now even the individual mandate has been
overturned. Millions remain without
coverage while prices continue to go up as health care corporations reap
massive profits. In the third, not
enough corporate entities supported climate mitigation of any real kind,
so the bill failed completely, endangering everyone. As part of this Obama’s
Paris Climate Agreement was completely voluntary, accepted all forms of energy
and was even an undershot.
The
author’s exception to this sorry practice during those years was “Don’t Ask,
Don’t Tell” (DADT) when disruptive soldier lawsuits and gay personnel losses
forced the Joint Chiefs of Staff to send DADT on its way. However DADT did not have a direct economic
rationale, unlike the others, so capital had no real problem with it.
The authors
address Trump’s 2017 corporate tax bill, which was endorsed by the whole
corporate world and passed with bipartisan support from both parties. At the same time Trump's attacks on the ACA were
blunted, as the HMO health industry objected. His support for the coal industry also
fizzled, as other corporate ‘green’ sectors opposed it, as did Wall Street. In the latter two cases Trump had broken ‘the
corporate compromise’ usually necessary to govern for the whole capitalist
class. This is similar to his selective
tariff decisions, favoring some capital sectors over others.
Citizens
had little to do with any of this.
CAPITAL
STRIKE
What powers
do the financial elite’s have? The most
important, and the one most ignored, is the many faces of the ‘capital strike,’
a term the authors justly bring back into focus. This occurs any time
businesses threaten to lay off employees, close factories or locations, move to
other countries, stop lending, stop coverage, threaten to raise prices or
interest rates, continue to keep their cash hoards overseas, stop investing,
move their money or otherwise stop functioning.
The authors repeatedly point to the trillions in cash U.S. corporations
are not investing as part of a coercive capital strike to get their political
way. The money instead finds its way to
investors, stock buybacks or higher CEO compensation, accelerating inequality. So pro-capitalist politicians like Obama are
always trying to improve ‘business confidence’ to avoid capital strikes.
This translates as preserving profits by any means necessary – cutting
regulations, stopping or lessening enforcement, watering down proposals,
lowering taxes, allowing business to police itself, letting ‘the markets’ work,
etc. Bourgeois and reformist politicians
can’t help it because capital calls the shots.
Police use this same method when they threaten city councils with the
‘blue flu’ or engage in a work slowdown of some sort unless they get their way.
Hmmm... the Money Power is organized. |
The most
familiar elite control method is campaign spending and lobbying politicians, as
industries ‘buy’ politicians. But added
to that is the power to be invited ‘to the table’ in some quiet backroom before
bills are introduced in Congress. This results in corporations sometimes
writing the drafts themselves. The
public and the ‘democratic’ Congress ‘stakeholders’ are not invited or
outnumbered. Even the word ‘stakeholders’
is really a cover for one particular stakeholder. A common practice among both Obama and Trump is
putting corporate employees into government jobs, ensuring the relevant
corporations or the military get a friendly reception. This is seen in the many Wall Street and
business appointees both parties came up with. By the way, Barney Frank of the 'draconian' Frank-Dodd law is now a bank director! The Republicans have amplified this method into a
direct government department-wrecking operation. If corporations have remaining differences after
a bill passes, they can get less or no enforcement through endless deep-pocket lawsuits
or threats of lawsuits. They can cajole
Congress into defunding government entities that regulate them, such as the
EPA, NRLB or OSHA. Lastly they can just ignore the laws that impede profits and
pay the small fines.
DISRUPTION
While a tiny
minority, capital has the most power over bourgeois politicians, so the
politicians almost always bow to their wishes, Democrat or Republican. According to the authors, the only exception
is when the ‘people’ intervene directly from the left. This
means pressure on business sectors or government entities in the form of powerful
strikes, boycotts, sit-ins, civil disobedience, lawsuits, occupations, riots, sabotage,
even guerilla war - various forms of what the authors call ‘disruption.’ This happened during the 1930s and 1940s through
successful hard struggles by the labor movement. Without years of strikes, sit-downs,
slow-downs, sympathy strikes and general strikes, the pro-union Wagner Law would
not have been enforced or obeyed by U.S. capitalists. The authors include the fronts against the criminal
Vietnam War by Vietnamese peasants and workers and U.S.
soldiers, which disrupted the U.S.
economy. Tet destroyed the myth of U.S.
military invincibility while U.S.
soldiers ultimately refused to fight, breaking the back of the whole armed
forces. The civil rights struggles in
the U.S. South led by black activists disrupted Southern businesses to such a
point they had to drop Jim Crow.
'34 Teamster Strikers Level Hired Company Thug |
You will
note the authors limit their analysis to the U.S., which is a flaw I’ll get into.
The authors
analyze the actual steps before the Wagner Act, ACA, Dodd-Frank or climate
bills became law, and it is not anything like Schoolhouse Rock or even
sausage-making. It is worse and worth
reading. Proving their point on the
Vietnam War, they cite Lyndon Johnson’s ‘Senior Advisory Group’ made up of the
‘wise men’ – corporate leaders from across the economy. On March 26th, 1968, based on the
Tet Offensive, the ‘wise men’ told Johnson to pull out of Vietnam. On March 31st, 5 days later, Johnson
announced on TV he would not seek further office and would deescalate the war. A more direct money connection could not be
found, as the military wanted to continue the occupation of South Vietnam. It tried and failed for another 7 years
through ‘Vietnamization” but the ‘wise’ capitalists had spoken.
The authors
look at the concept of the ‘corporate compromise’ in which different capitalist
economic sectors are brought together in agreement. These monied disagreements are the basis of
most ‘conflicts’ in bourgeois politics.
They point out that when different capitalist factions are occasionally at each
others throats, (most of the time they are not) it leaves an opening for progressives to take advantage of. I might add it is not by joining one side or
another, but by pushing their own transitional demands through the breach. The authors cite an neo-liberal Clinton-era rule that all
decisions by the government must pass a ‘cost benefit’ analysis (CBA) – meaning
if firms lose profits due to a CBA, the rule cannot be enforced. This has disemboweled, among others, many
environmental rules passed during the 1970’s Nixon administration.
ENDLESS
MASS PRESSURE?
Now the
caveat. At bottom this is sort of an
anarcho-syndicalist approach, which asks for ‘continuous mass pressure’ as the
only way for the left to institute change. For instance they attribute
the victory in Vietnam
to aggressive local cadres of the NLF exclusively, not the NVA, nor Soviet or
Chinese support. ‘Continuous mass
pressure’ is actually very hard to maintain, which is why they can only cite 2
successful periods in 90 years in the U.S. Anyone familiar with movements, especially
watching the present upsurge of spontaneous anger against the police and institutional
racism will see that without it being organized or ‘institutionalized’ in some real
national way, the movement will come up short.
It can achieve some local changes in some cities and some statues will end
up toppled - and that is it. A large number of people might be learning a
revolutionary lesson, which is a significant granular step, but that is not
quite the same thing. Here in
Minneapolis, the Democratic Governor and Mayor of Minneapolis, the ‘black’
police chief and some liberal black nationalists all passed a mild reform
that falls far short of ‘defunding’ the police, let alone abolition. The pressure here has lessened and the
liberals have triumphed so far.
On the
political front, given the U.S.
has not had a mass Labor or Populist Party for many years, they discount all
political action. Supporting Sanders in
the primaries or running candidates on a left/ labor/ populist platform or
forming a Labor or Populist Party are all ignored. They also refuse to promote revolutionary
organizations or unifying left fronts, which is typical of academics. The subtext is that all that can be done is
pressure elites spontaneously. They
admit that having pro-capitalist politicians and government appointees in government is one
of the avenues of power for corporations – so wouldn’t the opposite be
true? This strategy worked in Europe for
many years, institutionalizing social-democratic welfare states in Scandinavia
and much of Europe on the backs of the power
of mass Labor, Communist or Socialist Parties.
In this analysis their American exceptionalist slant is showing.
In a way,
the authors ignore how class struggle functions. Quantity turns into quality – a mass movement
– but if you do not consolidate this quality and solidify it for the next stage
of the fight with the bosses, you slide back to the prior quantity – no
movement. Without a transitional program
of anti-capitalist, capital-limiting demands that increase proletarian power, a
sufficient independent organizational plan or organizations, a strategy of
using all tactics and even the end-goal of overturning capital, the
cycle will repeat. “Endless pressure”
ends. The authors do point out that every single actual step forward, even the
most significant, can be overturned or ignored by the capitalist class, who
control social power in the long run.
Nothing is safe until Frankenstein truly meets his maker. The image of two Sisyphusian monsters
wresting for eternity seems to be their actual process, an idea out of Greek
mythology, not dialectics.
At any
rate, a very useful book that shows you exactly how the Congressional ‘sausage’
is made, focusing on the actual sausage-making dominated by capital under
several administrations, especially the doomed fake progressive Obama. It does not correspond to the illusion of
‘democracy’ we learned in junior high school.
Other prior
blog reviews on this subject, use blog search box upper left: “Yesterday’s Man,” “Griftopia”(Taibbi); “Russia,
Snowden, Stoli & the Gay Movement,” “The Populist’s Guide to 2020”(Ball)
“Listen Liberal” (Frank).
And I
bought it at May Day Books!
Red Frog
August 31,
2020