Tag: Great Depression

Consumer or Citizen

 

The Keynesian economic model which held sway in Western capitalist societies in the middle of the twentieth century has long since given way to neoliberalism, a policy and a philosophy which is a reworking of the laissez faire economies of the early industrial revolution. No wonder that we live in a new Gilded Age, the culmination of increasing economic inequality and degradation of publicly subsidized social services for everyone but the rich. Neoliberalism, a term which has meant many things in theory over the last one hundred years, has come to mean in fact laissez faire economics for the poor and middle class, and corporate welfare for the wealthy.

 

The result has been the takeover of the economy by short-sighted financial interests among the largest banks, and the takeover of politics and public policy making by those same banks and international corporations which owe allegiance to their executives and their shareholders instead of to any one national or local community. Consumers bear a great deal of the responsibility for this state of affairs, while citizens can change it.

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A protester at the second presidential inauguration of George W. Bush in Washington, D.C., in January 2005 holds up Adbusters’ Corporate American Flag. Photo by Jonathan McIntosh.

Consumers are passive; citizens are active. Consumers are inattentive to politics; citizens pay attention to what’s going on in government. Consumers struggle to get by and blame themselves when they cannot; citizens understand larger forces are arrayed against their interests and demand an equal place at the table. Consumers look at the wealthy and see people who helped themselves; citizens know how wealth creates wealth and privilege looks out for its own. Consumers feel helpless to change the course of society; citizens band together because they realize their power is in their numbers.

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A sign at the January 2018 Women’s March in Missoula, Montana. Photo by Montanasuffragettes.

 

The neoliberal philosophy of the past forty years has stripped people of their view of themselves as citizens with rights, duties, and responsibilities in society and replaced it with the lumpish, passive recognition of themselves as consumers, replaceable parts in the economic machine. Meanwhile, neoliberals have sold the consuming masses on the idea that unions and publicly funded healthcare and education are bad policies, but tax cuts for the wealthy and for corporations are good because of some nebulous trickling down that’s supposed to happen. Mission accomplished!

Taking action to change neoliberal policies on the environment, on economic inequality, and on the accountability of corporations, banks, and politicians is going to have start with a change in attitude among the populace from consumers to citizens. It starts with getting the money out of politics, and that starts with overturning the Supreme Court’s 2010 Citizens United decision, which equated money with speech. What greater symbol for the neoliberal outlook can there be than “money talks”? The second most important step toward change would diminish the power of the big banks by reinstating the Depression era Glass-Steagall Act, separating commercial and investment banking. The third step would end government subsidies for the fossil fuel industry and divest from it entirely. All easier said than done, of course, and only the first few of many steps to curtail the undue influence of the rich and powerful over society, but once consumers get up off their couches and walk down as citizens to their voting places they will be taking the steps necessary to change a system that works only for a privileged few, and not for them.
— Vita

 

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A Corny Time of Year

 

October is corn harvest time in much of the United States, and popcorn has this month dedicated to it in all its glory. The sweet corn harvest was earlier, in August and September, but for field corn and popcorn, October is typically the month when farmers cut the stalks. The Harvest Moon was on October 5th, and at the end of the month corn and corn stalks figure in Halloween decorations and celebrations. Corn will have a part in the celebrations of Thanksgiving and Christmas, too, though for Christmas its part will fall mostly to strings of popcorn for garlanding Christmas trees.

 

Popcorn is made from a special variety of maize, called Zea mays everta, the special popping characteristic of which Native Americans may have discovered long ago when some kernels fell near a cooking fire. It was a long time between that discovery and the one in the 1960s by Orville Redenbacher and his business partner, Charlie Bowman, of a hybrid strain that popped more reliably and twice as large as earlier popcorns. The “gourmet” description added to the packaging of their product was purely marketing. In the meantime, popcorn had become a favorite snack food in America by the early twentieth century and had even become ingrained in popular culture, with the merchandising of Cracker Jack caramel corn and peanuts in a box with a prize, and the baseball song “Take Me Out to the Ballgame”, which included a reference to Cracker Jack.

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“Shine On, Harvest Moon” sheet music cover from 1908, with corn shocks included in the artwork. This songbook standard was written by Nora Bayes and Jack Norworth. Norworth also co-wrote “Take Me Out to the Ball Game” in the same year, with Albert Von Tilzer.

The biggest boost to popcorn sales came from movie theaters, even though theater owners initially resisted selling popcorn in house because of the low brow connotations of the snack. Popcorn was cheap, and movie theater owners in the first few decades of the twentieth century sought a slightly higher class clientele. That changed during the Great Depression when theater owners took concession sales away from independent vendors out on the sidewalk and brought the selling of high profit items like popcorn under their own wing in the lobby. It wouldn’t be far fetched to say that popcorn sales saved many a movie theater from bankruptcy during the darkest years of the Great Depression.

 

The next big boost to popcorn sales came in the 1980s with the simultaneous advent of home video rentals and the widespread appearance of microwave ovens in homes and, with them, microwaveable popcorn. Suddenly people could save money on a trip to the movie theater and still enjoy a facsimile of their favorite movie theater snack at home. There have been health concerns about both movie theater popcorn and microwaveable popcorn, each for different reasons. Lately there have also been alarms about the use of neonicotinoids, implicated in honey bee deaths and colony decline, as a seed coating for planted popcorn. The good news is that popcorn has not been swept up in the GMO madness.

Cracker jack newspaper ad 1916
1916 newspaper advertisement for Cracker Jack.


The Swedish Chef grooves to the tune “Popcorn”. For an added treat, turn on the captions.

The best tasting popcorn and the healthiest might have been the batches people cooked up themselves on their stove tops at home in the days before they gave in to the tempting convenience of microwaveable popcorn. It’s still possible to make it that way, of course, and it is really not that difficult. The home cook also has the advantage of controlling the amount of butter and salt added, the two ingredients that turn popcorn from a relatively healthy snack into a not entirely healthy one. What makes the concept of home cooked popcorn even more attractive and plausible is the addition to the home entertainment system since the 1970s of video recorders and DVDs, all with associated remote controls featuring pause buttons. No more rushing to pop up a snack during a commercial break! Take some time to relax and do it right.
― Izzy

 

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Heritage of Hate

 

The evening before the “Unite the Right” rally in Charlottesville, Virginia, white supremacist marchers wound their way across the Grounds of the University of Virginia (UVA) in a torchlight parade. That demonstration caught city and university officials by surprise. The “Unite the Right” rally organizers had a permit from the city for a demonstration on Saturday, August 12, at a city park, ostensibly to protest the imminent removal of a statue of Confederate General Robert E. Lee. They made no formal arrangements with the university for their torchlight parade the evening before, on August 11. It was at the rally on UVA grounds that the marchers showed their true colors.

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German American Bund parade in New York City on East 86th Street on 30 October 1939; photo by New York World-Telegram and the Sun staff photographer.

 

Chanting “Blood and Soil” and “Jew will not replace us”, neither of which bear the slightest relationship to Robert E. Lee, the Confederacy, or the often disingenuously used slogan “Heritage not Hate”, but everything to do with Nazism, the marchers dropped any pretense they were gathered from around the country to promote a positive program of support for white culture in general, and for southern heritage in particular. They were gathered to instill fear and to vent hatred in the manner of the white supremacists of Nazi Germany before them.
The “Blood and Soil” slogan was telling because it came directly from the Nazi policy of promoting pure Aryan blood heritage over all others, and exalting ties to the native land, or soil, of which the Nazis had an expansive vision, since it included the grain fields of the Ukraine. That expansionism, seen by the Nazis as their birthright, was known as “Lebensraum”, or Living Space. All that has not even a tenuous relationship to issues of southern pride, for which the marchers were supposedly gathered. The anti-Semitic slogan speaks for itself.

The opening scene of the 1962 film To Kill a Mockingbird, introducing a farmer, Mr. Cunningham, portrayed by Crahan Denton, when he visits Scout and her father, the lawyer Atticus Finch, to partially repay his debt for Mr. Finch’s legal help.

The white supremacists gathered in Charlottesville this past weekend had no business being there other than the convenient rallying point of the removal of symbols of the Confederacy from public spaces. They wanted to vent their own petty grievances and hatred against a culture that is leaving them behind. They pretend that America was and is theirs to do with as they please, and that everyone else who has other ideas is an interloper and an enemy to be intimidated, beaten, and ultimately disposed of. The Native American tribes would have something to say about who belongs here and who are the interlopers. Hitler, for whom the American theft of land and expulsion and genocide of native peoples served as a model for what he wanted to accomplish in the Ukraine and in eastern Europe, would no doubt support this past weekend’s white supremacist warriors.

Later in the film, Atticus Finch, portrayed by Gregory Peck, holds off a lynch mob intent on dragging out of jail his client, a black man named Tom Robinson accused of raping a white woman. Mr. Finch receives inadvertent but effective help from Scout, portrayed by Mary Badham, who singles out Mr. Cunningham from the crowd, talking to him about personal matters like his property entailment. Mr. Cunningham is embarrassed by Scout bringing up his financial embarrassment in public, the matter which Mr. Finch has been helping him resolve, and Mr. Cunningham can no longer remain a faceless part of the lynch mob. Unlike the white supremacist mob gathered in Charlottesville, chanting “Blood and Soil”, Mr. Cunningham was a true man of the soil, and he was tied by family blood to his entailed property in rural Alabama during the hard scrabble times of the Great Depression. He was also capable of feeling shame, and therefore capable of redemption.

 

Robert E. Lee, the forgotten man supposedly at the center of all this, would have been befuddled by the slogans expressed at the torchlight rally. Thomas Jefferson, whose statue in front of the Rotunda at UVA was the focal point for the end of the evening’s march, would have been disgusted by the slogans and the people expressing them. Yes, both men owned slaves and were in that sense white supremacists themselves, but they had a grander idea of the world than to shrink it down to hating others as they might have hated themselves. It would have been beyond their dignity to portray themselves as victims and whine about the erosion of their privileged position, as those people supposedly gathered in Charlottesville to worship their graven images have done. Those people have a more fitting recipient for their craven idolatry, a man who died amid the ruins of his bigotry in Berlin on 30 April 1945.
― Izzy

 

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Casino Banking

 

The passage of the 1933 Glass-Steagall Act separated commercial banking from investment banking, and for 75 years there were no enormous financial meltdowns in the United States originating from the banking sector of the economy. In 1999, the Gramm-Leach-Bliley Act repealed the main provisions of Glass-Steagall and, in the view of critics of the repeal, the countdown to financial meltdown began, culminating in the Great Recession which began in 2008. The meltdown, like the Great Depression which gave birth to Glass-Steagall, had worldwide repercussions, but in the aftermath there have been only watered down reforms of the banking industry in the US such as the Dodd-Frank Act, and no high level banking executives have gone to jail, been taken to court, or even been indicted. It’s only a matter of time therefore before a similar financial crisis strikes the US, particularly since the new presidential administration is talking about dismantling Dodd-Frank.

 

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Crowd gathering on Wall Street after the stock market crash on October 25, 1929.
Like other European nations, Iceland was swallowed up in the 2008 financial crisis. Like the United States, it had its own unruly banking sector contributing to the crisis – casino banks, in the sense that they used the money from depositors in their commercial operations to gamble on dubious investments, always passing along losses to customers while reaping the profits mostly for themselves. As in casinos, the house rarely loses, and in the case of casino banks when it appears they might lose the government will be there to bail them out. That’s the deal banks have come to count on, particularly if they are “too big to fail.” Unlike other European nations and definitely unlike the United States, Iceland allowed its casino banks to fail and then vigorously investigated and prosecuted the casino bankers responsible. In Iceland, 26 top bankers have gone to jail since 2008, and moreover their economy has rebounded robustly. In the US, 0 top bankers are wearing orange jumpsuits as a consequence of causing the 2008 financial meltdown, and the economy has limped slowly toward recovery ever since.

 

It’s interesting to note that the 2016 Republican Party platform included a plank about reinstating Glass-Steagall. Wall Streeters were alarmed at first, but then everyone realized it was merely politics as usual and that the incoming Republican administration and Congress had no intention of taking the idea seriously. They have been proven correct. Democrats make rumbling noises occasionally about reinstating Glass-Steagall, but even if they had the will, they don’t have the votes. It’s all just politics at this point, since Wall Street money has long since turned heads in both major parties.


“Let them eat cake!”

There is only one party in the United States, the Property Party … and it has two right wings: Republican and Democrat. Republicans are a bit stupider, more rigid, more doctrinaire in their laissez-faire capitalism than the Democrats, who are cuter, prettier, a bit more corrupt – until recently … and more willing than the Republicans to make small adjustments when the poor, the black, the anti-imperialists get out of hand. But, essentially, there is no difference between the two parties.

― Gore Vidal, from his 1975 essay “The State of the Union”.

Social reforms wrought from identity politics are all to the good, but as always in our culture the primary fixation should be on the money. Martin Luther King, Jr., understood this when he traveled to Memphis, Tennessee, in 1968 to speak to striking African-American sanitation workers. Without work and the personal dignity that comes from a living wage, people cannot begin to address their social situation and have the energy to improve their lot within society as a whole. For the poor and the middle class it all starts with money, and for the rich it ends there as well. The oligarchic elite take advantage of social issues like gay marriage to divide and distract the majority while they continue to concentrate wealth and power in their own hands. There are two financial reforms which would go a long way toward stemming the rising power of the corporate oligarchy and restoring power to the majority of Americans: reinstatement of Glass-Steagall or something very much like it, and the legislative or constitutional rescission of the Supreme Court’s Citizens United decision of 2010.
― Vita

 

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Germany, Christmas 1932

The Weimar Republic in Germany was all but finished at the end of 1932. In September, Chancellor Franz von Papen had dissolved the parliament, or Reichstag, after a vote of no confidence. The government was in gridlock, and power splintered among a half dozen or more political parties with little inclination to compromise with each other. Von Papen found it impossible to assemble a ruling coalition, and he eventually resigned. On January 30, 1933, by appointment from President Hindenburg, Adolf Hitler took over as Chancellor.

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Electioneering outside the Reichstag, July 1932; photo by Georg Pahl

At the end of 1932, six million people were unemployed in Germany, in a population of 65 million. The unemployment level was similar in the United States, where 12 million people were out of work, in a population of 125 million. Nonetheless, the Great Depression hit Germany even harder than the United States because at that time the U.S. was a creditor nation and Germany a debtor nation, with an economy propped up by loans from the Americans. As the effects of the Great Depression became clear around the world, nations moved to impose tariffs to protect their domestically produced goods, and Germany could no longer get export income. Germany had also been crippled by over a decade of reparations payments to the victors of World War I, until July of 1932, when it negotiated a suspension of payments.

 

In the July elections for seats in the Reichstag, the Nazi Party won 230 seats out of 608 available, giving them the largest representation of any of the parties. Hitler himself never was elected to power, having lost the presidential election to the incumbent, Paul von Hindenburg, earlier in the year. As noted, it was Hindenburg who would appoint Hitler to power in 1933.
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Electioneering in the countryside, July 1932; photo by Herbert Hoffmann

 

Amidst the political turmoil of the dissolution of the ineffectual Weimar Republic and the rise of the authoritarian Nazi Party, a singing group of six young men – three of them Jewish – came together in Germany in 1927 and rose to prominence there as well as internationally, until the death of Hindenburg in 1934 removed the last restraints on Hitler’s ambitions and dark dreams. With that the curtain came down and the singing group dissolved, the Jewish members eventually escaping Germany. They called themselves the Comedian Harmonists, and they recorded their version of “Silent Night, Holy Night” on December 9, 1932.
– Vita

 


 

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