Extractive Capitalism

Gusher Up, Trickle Down, Leads Me to a Sinking Feeling

BILL ASTORE

AUG 02, 2026

Extractive capitalism is the economic model for the United States.

We’ve been living through a brutal experiment of how much work and wealth can be extracted from the working- and middle classes and funneled upward before the former are exhausted. The same brutal experiment is being inflicted on Mother Earth: how much lithium, gold, fossil fuels, strategic metals and minerals, even drinking water can be commodified and extracted before the earth itself is exhausted.

It’s a gusher up, trickle down system where almost all the profit is absorbed by corporations and the oligarchs. It’s a system we’re told that’s inevitable—the best possible system, the most efficient, market-driven, a reflection of the “genius” of men like Jeff Bezos and Elon Musk. And it is indeed a reflection of those men—and their boundless greed.

It’s truly amazing how much wealth is being extracted from workers. The tax code targets wages more than capital gains. Inflation (gas, groceries, and other essentials) cuts into largely fixed incomes. Health care costs continue to rise and are the leading cause of personal bankruptcies. Higher education often leads to onerous student debt that cannot be discharged through personal bankruptcy. Workers are bombarded with ads to bet money on sports using apps on their phones. Lottery tickets are everywhere, selling the dream of a financial windfall at very long odds. Expensive prescription drugs are sold as a solution to excessive weight and even to addiction to other drugs such as opioids.

The term “debt slavery” describes the status of many Americans; they own so little, not their houses (assuming they can afford one), not their cars and trucks, in some cases not even their furniture.

Productive capitalism is possible. So too is a “share the wealth” system centered on communal health rather than the greed of billionaires. But we are fed constant BS that “lifestyles of the rich and famous” are what we should all aspire toward.

How long a top-heavy system of extractive capitalism can last before it collapses under the weight of its own greed and waste is an experiment we’re currently conducting. What will come after the collapse is unknown. 

To me, it seems the idea of a social contract is dead. America’s oligarchs and corporations are driven by profit margins, and workers’ jobs are being ruthlessly curtailed or eliminated in the process. AI is being pushed largely to make salaried employees redundant. Who needs people when machines can perform the same function, even if the machines are limited and only as reliable as their (faulty) programming?

Corporations say they exist to maximize shareholder value. Billionaires say they deserve all the money they can extract because they are the “makers” and creators (the rest of us, of course, are takers and drones). They owe us (the little people) nothing, so they say, and if we complain, we are told to work harder toward the American dream, even if it takes three jobs, none of which may provide health care benefits.

Small wonder that the American people want a different system; small wonder we are so heavily propagandized against anything that smacks of “communism” or even democratic socialism.

It’s laughable that Trump and Company sell communism (!) as a leading threat to America when it’s so obviously extractive capitalism that threatens to bury us. Meanwhile, extractive capitalism is protected (and accelerated) by unbridled U.S. militarism as the Pentagon’s budget soars to $1.5 trillion (or higher) in FY2027.

A militant extractive system is very good for a few at the expense of a great many. I suppose this is why my dad warned me that “the rich get richer and the poor poorer” and that tough times were ahead that might rival his experience of surviving the Great Depression in the 1930s.

I don’t know if it’s too late to change course. Whether we’ve already hit the iceberg and are just fighting over the lifeboats as the ship of state goes down remains to be seen. America, I like to think, still has the potential to rally. What is so deeply frustrating is that we’re being led by rogues and villains who seek to keep us in steerage even as they dance in the ballroom.

And when the ship finally slips beneath the waves, they won’t be onboard, dressed in their best while waiting for their demise. They will be long gone, motoring away on their luxury yachts.

Who Determines U.S. Foreign Policy?

W.J. Astore

The Golden Rule Applies

Who determines U.S. foreign policy?  The question seems simple enough.  According to my go-to source, the AI chatbot ChatGPT,

U.S. foreign policy is made by the President, with the assistance and advice of the National Security Council and the State Department, and with the approval of Congress. The President has the power to negotiate treaties and executive agreements, and to appoint ambassadors, while Congress has the power to approve or reject treaties and executive agreements, and to confirm ambassadors. The National Security Council and the State Department are responsible for providing the President with advice and information on foreign policy issues.

That’s how many people see it.  Except it doesn’t work that way.  More than anything, America is an oligarchy rooted in capitalism and driven by greed and profit.  Foreign policy, therefore, is most often driven by powerful corporate interests, especially those tied to the military, hence President Eisenhower’s military-industrial complex.  When looking at foreign policy, one must always factor in the interests of Wall Street and its small army of lobbyists and especially powerful corporate interests in fossil fuels and similar trillion-dollar industries.

Again, when looking at U.S. foreign policy, its decisions and commitments, one should first ask, Cui bono?  Who benefits the most from the decisions made?  Second, one should keep in mind the golden rule, as in they who have the gold make the rules.  Presidents, Secretaries of State, ambassadors, and the like come and go, but the moneyed interests remain.  And with “dark money” now endemic in politics, it’s difficult to parse exactly who is giving what to whom.

I don’t mean this as a great revelation.  In the 1950s C. Wright Mills wrote of the “power elite,” which I cited in an article on greed-war.  This is what Mills had to say:

the high military, the corporation executives, the political directorate have tended to come together to form the power elite of America … a triangle of power [that is] the key to any understanding of the higher circles in America today.

C. Wright Mills knew the score

That power elite largely drives and determines U.S. foreign policy today.  Recall as well that the Pentagon budget today (almost $860 billion) is 14 times greater than the State Department (roughly $60 billion).  Basically, State is a tiny branch of the Pentagon.  I wonder who calls the shots?

We’d like to think we the people have some say over foreign policy.  Don’t we elect our members of Congress?  Don’t we elect our president?  But when both parties are thoroughly corporatized, when both respond to lobbyists and special interests while ignoring the rest of us, the truth is we essentially have no choice and no influence.

That truth can be hard to believe because we like to think we have some agency.  But we have none.  Even so, the power elite will pretend that our opinions matter, even as they resolutely ignore them.  Consider the most important foreign policy decision any nation can make: whether war is to be declared and our troops are to be sent off to fight and die.  We haven’t made that decision as a nation since December of 1941.  Every war America has fought since World War II has been undeclared.  That should tell us something about who’s in control.  Hint: It’s not us.

The rich and powerful will tell you and sell you what “truth” to believe in.  So, we’re told and sold the idea that Joe Biden is making vitally important decisions in the White House, even as Joe nowadays has trouble reading from a teleprompter.  We’re told and sold the idea that Congress represents our interests when it most definitely doesn’t (as the Princeton Study proved).  We’re told and sold the idea that America cares about fostering democracy in places like Afghanistan, Iraq, and Ukraine, but a bit of digging reveals the real forces and interests at play, such as oil, pipelines, strategic metals, market dominance, and the like.

Look, I’ve taken standard college courses on U.S. foreign policy.  I learned a lot from them.  But even in college I didn’t learn much about the colossal power of America’s military-industrial complex; the enormous influence of mega-corporations; the way in which foreign policy is shaped by economic profit and the pursuit of resources, some of which is captured in that old saw that “What’s good for General Motors is good for America.”

Well, GM may have waned in influence, but other industries and financial interests have taken its place. Again, if America’s foreign policy decisions confuse you, clarity should come when you ask yourself, who benefits (not you, of course), and when you remember the golden rule, as in they who have the gold make the rules.

Of Products and Assets and Families

W.J. Astore

When I was a college professor, whether civilian or military, I was told unironically that I was part of a “family.” I had an Air Force “family.” I had a Penn College “family.” But when these institutions wanted me to do something, often something I really didn’t want to do, the “family” talk went out the window and I was reminded I was an “employee” in the civilian world and “just another f*cking officer” in the military world. None of this surprised me because I never bought any of that “family” crap. I only have one family, thank you very much, and they are related to me by blood or by marriage. My “family” is not my boss, not my employer.

Management loves to talk about employees as if they’re “family” when they really think of us as “assets” or “products” or even simply “the cost of doing business” (and the quickest way to reduce cost is often to get rid of “family” members).

It’s especially telling to hear corporate/management talk in the sports world. Sam Kennedy, who’s the president of the Red Sox, talks openly about putting the best “product” on the baseball diamond. He doesn’t see his players as people, he reduces them to “assets” that are basically interchangeable. Winning only matters in the sense that it produces profit while elevating the value of the “product.”

Of course, this is nothing new. In Slap Shot (1977), an amusingly vulgar and perceptive movie about a minor-league hockey team starring Paul Newman as an aging player, we learn that the team is owned by a wealthy woman who decides to liquidate the team rather than sell it because it’s more valuable that way as a tax write-off. The players, the fans, all the employees, mean nothing to this absentee owner. All that matters is money.

Paul Newman as player-coach Reg Dunlop in “Slap Shot,” one of the finest movies about sports in America

And of course any Red Sox fan can cite “the curse of the Bambino,” when a century ago the owner of the Red Sox sold Babe Ruth to the New York Yankees to raise money (for a theater production, if memory serves).

Capitalism reduces everything to products, assets, profit margins, and the like. I don’t know about you, but this is not how I think of my real family.

Our National Health Care Plan

W.J. Astore

Fifteen years ago, I saw a bumper sticker on a colleague’s car:

Our National Health Care Plan — Don’t Get Sick.

That’s about as succinct an expression of U.S. health care as you can make. We have no national health care plan. Your only hope is not to get sick, or, if you do get a serious (read: expensive) illness, to die quickly before you and yours are bankrupted.

I often joke that health care is really wealth care in America, and an anecdote shared by a friend this morning confirmed it. He recently had a bad case of the flu, but he confirmed it wasn’t Covid-19 through home test kits. Since he travels to Germany, he bought several home test kits there that were on sale for the equivalent of roughly one dollar. Compare that to Covid home test kits at CVS here in America (assuming you can find one), which retail for $30.00. As my friend noted, “Your profit-driven health care industry at work!”

Profiting from sickness is truly an “exceptional” feature of American capitalism. Isn’t it wonderful that you have the “freedom” to purchase private, for-profit, health insurance that costs you hundreds of dollars a month, with deductibles of $5000 or $10,000 or higher, with co-pays and various other costs and restrictions? Truly, freedom isn’t free!

A reminder: Joe Biden ran against Medicare for all and said he’d veto it if it ever reached his desk, which it obviously won’t. But he did promise a public (government-provided) option for health care, a promise he has failed to keep, just as Barack Obama failed to keep his promise for a public option in 2008-09. And the Democrats wonder why so many people either don’t vote or vote for an even more pro-business party.

The latest betrayal is the Democratic Party’s capitulation to Big Pharma. Instead of allowing Medicare to negotiate prices for all prescription drugs, the Democrats have decided to allow negotiation for only 10 drugs, the new prices of which won’t become effective until 2025. One of these drugs is insulin. So if your insulin costs too much and you need to ration it, thereby imperiling your health, never fear: maybe in four years it’ll be affordable again. Or maybe not.

And if you’re sick and you need an expensive drug that’s not one of the magical ten, well, too bad for you. Maybe you shouldn’t have gotten sick. Or maybe you should have gotten a job with better health care benefits. It’s most certainly your fault, not the government’s and certainly not that of the profit-driven health care industry.

Clint Eastwood, in “The Outlaw Josey Wales,” said that “Dying ain’t much of a living.” That may have been true about bounty hunting, but it turns out that many indeed are making a living, indeed a killing, off of health care in America. Hooray capitalism!

America, Land of Discontent

W.J. Astore

Binary logic is common in America. Us versus them. Republican versus Democrat. BLM versus BLM (that’s Black lives versus blue lives). Love it or leave it.

I remember as a teenager reading a coda to that saying: Or change it. If you don’t “love” America, you shouldn’t have to leave it. Indeed, if you truly “love” America, you’d want to change it to make it even better.

This idea was on my mind as a I watched a couple of videos on YouTube by Americans who’ve been living overseas for many years, only to return recently and reflect on how life in America seemed to them after being away for so long. Here are a few notes I jotted down:

Features of America: Consumerism. Materialism. Advertising everywhere, especially for prescription drugs. Fast pace of life and a stress on competition. A mainstream media that’s propagandistic — and that pushes fear and outrage. Only two major political parties that stifle debate and change. Constant divisiveness.

Features of Americans: Stress on individualism and ethnocentrism. Empathy and our common humanity is downplayed. Sense of entitlement. Lack of curiosity about the wider world. A lack of purpose in the sense of living a life of meaning. Lack of integrity, especially at the higher levels of government and the corporate world.

These observations reminded me of Michael Moore’s “Where to Invade Next” (2015). Moore goes to various countries (Germany, France, Italy, and so on), looking for ideas Americans can steal as they “invade.” I recall German workers who only had to work one job to make ends meet (roughly 37 hours a week, if memory serves), and also German workers who served by law on the board of major companies like Mercedes; I recall school lunches made for French kids by chefs using local ingredients (the contrast with American school lunches was stomach-turning); I recall Italian workers with six weeks of paid vacation per year, as opposed to American workers who are lucky to get two weeks. Why can’t America change to be more worker- and kid-and family-friendly?

The female leaders of Iceland, if memory serves, put it well near the end of Moore’s excursions. They said America is a me-me-me society, whereas Iceland prefers “we” to “me.”

I’ve written before about how Americans are kept divided, distracted, and downtrodden as a way of preventing meaningful, organized, societal change. Another “d” word related to this is discontent. Americans are often discontented in ways that inhibit change. It’s something Tana French touched on in her novel, “The Likeness,” from 2008. Here’s an excerpt:

Our entire society’s based on discontent: people wanting more and more and more, being constantly dissatisfied with their homes, their bodies, their décor, their clothes, everything.  Taking it for granted that that’s the whole point of life, never to be satisfied.  If you’re perfectly happy with what you’ve got—specially if what you’ve got isn’t even all that spectacular—then you’re dangerous.  You’re breaking all the rules, you’re undermining the sacred economy, you’re challenging every assumption that society’s built on. By being content, you become a subversive.  A traitor.

To which another character replies: “I think you’ve got something there.  Not jealousy, after all: fear… Throughout history—even a hundred years ago, even fifty—it was discontent that was considered the threat to society, the defiance of natural law, the danger that had to be exterminated at all costs.  Now it’s contentment.”

There’s a potential paradox here. Won’t the discontented favor positive change, whereas the contented will favor the status quo?

But French’s insight suggests otherwise. The discontented are so busy trying to become contented, most often through a me-first consumerism and materialism, that they can’t come together and mobilize for change. Fear drives them to pursue what their “betters” have, and to admire those people as well. It’s the contented who are dangerous, the ones who’ve left consumerism and materialism behind, the ones with the confidence, time, and independence of thought to contemplate a changed world, a better world. Perhaps even a better America.

In the USA, Life Is Incredibly Cheap

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America’s counterfactual leader, hands posed like pistols, telling it like it isn’t

W.J. Astore

The coronavirus has made one thing clear: life is incredibly cheap in the USA.  Or so it seems to our leaders, who are desperate to put America back to work by Easter in two weeks’ time, irrespective of the death toll that would result.  It’s all about getting back to “normal,” keeping the wheels of capitalism rolling along, and the profits rolling in for corporate America.

Capitalism is America’s true national religion, and money is our god.  Our leaders make decisions consistent with that belief system.  And, as Dorothy Day, the famous Catholic activist for the poor, said: “Our problems stem from our acceptance of this filthy, rotten system.”

Worth citing here is Caitlin Johnstone, who in a recent article noted how America’s response to COVID-19 illustrates the pathologies of market-driven capitalism and the politicians who so willingly serve it:

The corporate cronyism of America’s political system has been highlighted with a massive kleptocratic multitrillion-dollar corporate bailout of which actual Americans are only receiving a tiny fraction. Instead of putting that money toward paying people a living wage to stay home during a global pandemic, the overwhelming majority of the money is going to corporations while actual human beings receive a paltry $1,200 (which they won’t even be getting until May at the earliest) at a time of record-smashing unemployment.

America’s capitalism worship has been highlighted with Wall Street Journal headline “Dow Soars More Than 11% In Biggest One-Day Jump Since 1933” running at the exact same time as “Record Rise in Unemployment Claims Halts Historic Run of Job Growth — More than 3 million workers file for jobless benefits as coronavirus hits the economy“. Stocks are booming, Amazon is surging, and mountains of wealth are being transferred to sprawling megacorporations, while actual human beings are terrified of what the future holds.

Nice to know a few are profiting while so many worry, suffer, and die.  But should we be that surprised by how callous America’s leaders are?

I recall reading Daniel Ellsberg’s book on U.S. planning for nuclear war.  Sixty years ago, U.S. leaders were prepared to kill 600 million people (that’s not a typo) in their efforts to “win” the Cold War.  As I wrote about in December 2017:

U.S. nuclear war plans circa 1960 envisioned a simultaneous attack on the USSR and China that would generate 600 million deaths after six months.  As Daniel Ellsberg noted, that is 100 Holocausts.  This plan was to be used even if China hadn’t directly attacked the U.S., i.e. the USSR and China were lumped together as communist bad guys who had to be eliminated together in a general nuclear war.  Only one U.S. general present at the briefing objected to this idea: David M. Shoup, a Marine general and Medal of Honor winner, who also later objected to the Vietnam War.

Notoriously, General William Westmoreland once mused that “The Oriental doesn’t put the same high price on life as does a Westerner.  Life is plentiful.  Life is cheap in the Orient.”  That philosophy helped to justify massive killing of the Vietnamese people (perhaps as many as three million) in a futile quest to “win” the Vietnam War.

Thinking about Westmoreland’s musing in light of our government’s response to COVID-19, as well as past plans for “winning” a nuclear war and prevailing in Vietnam by killing everything that moved, one wonders about which value system truly esteems life.  It sure doesn’t seem to be the “Western” model as espoused by our leaders.

Bonus Lesson: In its daily send out, the New York Times had this article today: FACT CHECK: “Trump’s Baseless Claim That a Recession Would Be Deadlier Than the Coronavirus,” by LINDA QIU.  The opposite is more likely to be true, according to research and experts.

The Democratic Debates, Part 9: Special Bloomberg Edition

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Look at the billionaire wanting to be called on

W.J. Astore

Feeling my own pain, I watched last night’s Democratic debate from Nevada, which I have to say sparkled in the first hour as Elizabeth Warren tore into Mike Bloomberg for his racism and sexism.  Indeed, all our regulars took their shots at the billionaire, but I thought Warren landed the most telling ones.  Throughout the proceedings, Bloomberg largely looked bored; perhaps he was mentally counting the billions he’d saved under Trump’s tax rebate for the richest.

Anyhow, I somehow endured the entire two hours, though the dishonest questioning of Bernie Sanders by the panel put me on edge.  Basically, they hinted he was an un-American socialist-communist who’d soon collapse from another heart attack.  It was that bad.

Here’s how I see the candidates and their performances, post-debate and in alphabetical order:

Joe Biden: I think he profits the most from Bloomberg being on the stage, because Uncle Joe no longer has the worst record.  As the other candidates went after Bloomberg, Biden could wax nostalgically about the good old days under Obama.  He did OK.

Mike Bloomberg: Mayor Mike is a mega-rich old white guy consumed by his own ego and smugness.  He didn’t even bother trying to connect with people.  Money is his connection.

Pete Buttigieg: Mayor Pete is mega-poor young white guy consumed by his own ego and smugness.  As he got into a few tussles with Amy Klobuchar, I found myself rooting for Amy.

Amy Klobuchar: She’s good when she’s delivering prepared lines, but she faltered when asked about her inability to name the president of Mexico.  She was both defensive and disingenuous, not the best combination.

Bernie Sanders: Bernie is always Bernie.  Consistent passion on behalf of workers is his sweet spot.  He hit a home run as he talked about socialism for the rich and rugged individualism for the poor.

Elizabeth Warren: Something about the presence of Bloomberg lit a fire under Warren.  She had someone to torch, and she hit the target.  She also brought her remarks back to people of color on several occasions.  Perhaps her best debate performance yet.

As usual, the mainstream media was awful.  Did you know capitalism is the religion of America?  Apart from Bernie, the candidates professed their belief in capitalism as if the almighty god of America is Mammon.  Then again, our money says “In [this] God We Trust.”  In all seriousness, there’s something truly unseemly about all the money-grubbing in these debates.

Of course, you already know what was missing in this debate.  There were no questions on foreign policy.  None on America’s wars.  None on the military-industrial complex.  None on Iran or North Korea or Venezuela.  There were questions on trade that involved China and Mexico, but that was about it.  But at least climate change was discussed.

Most revealingly of all, the candidates were asked if the candidate with the most delegates should be the party’s nominee, even if that candidate lacked the requisite number for a first ballot win.  All the candidates said, “let the [rigged] process play out,” meaning let the establishment’s super-delegates determine the winner, except for Bernie, who is likely to be the candidate with the most delegates who gets screwed by the DNC this summer.

And there you have it.  Time for a third party and a true political revolution, Bernie.

Putting Labor back in Labor Day Weekend

WPR: Marches & Pickets

W.J. Astore

Labor Day weekend is a reminder there’s no labor party in U.S. politics.  Instead, we have two pro-business parties: the Republicans and the Republicans-lite, otherwise known as the Democrats.  Both are coerced if not controlled by corporations through campaign finance “contributions” (bribes) and lobbyists (plus the promise of high-paying jobs should your local member of Congress lose an election or wish to transition to a much higher paying job as a lobbyist/influence peddler).  With money now defined as speech, thanks to the Supreme Court, there’s a lot of “speech” happening in Congress that has nothing to do with the concerns of workers.

Nevertheless, a myth exists within the mainstream media that “socialist” progressive politicians are coming this fall to take your money and to give it to the undeserving poor (and especially to “illegal” immigrants, who aren’t even citizens!).  First of all, the so-called Democratic Socialists are not advocating nationalization of industry; they’re basically New Deal Democrats in the tradition of FDR.  Just like Republicans, they believe in capitalism and the “free” market; they just want to sand down some of the rougher edges of exploitation.  Consider, for example, Bernie Sanders’s efforts to get a living wage for Disney employees.  Disney has finally promised to pay workers $15.00 an hour (phased in over the next few years), even as the corporation makes record profits and the CEO stands to earn hundreds of millions.  Second, you’ll notice the bulk of the Trumpian tax breaks aren’t going to the workers and middle class: it’s the richest Americans (and corporations) that benefit the most from these cuts.  Some of that money is supposed to “trickle down” to workers, but most of it doesn’t.  (Funding stock buy-backs, not pay raises, is especially popular among corporations.)

My father knew the score.  As a factory worker, he lived the reality of labor exploitation, and fought his own humble battle for decent wages.  I’ve shared this lesson before, but it bears repeating, especially since it’s Labor Day weekend.

My Dad’s Story

(My dad was attempting to get a dime pay raise at the local factory.  This was about the year 1950.)

It seems that Mike Calabrese on his own asked Harry Callahan [one of the owners] for a pay raise and he was refused. Mike decided to organize the men members and go down in a group. In our group he got ten men to approach Harry C. for a raise. But when it was time to “bell the cat” only three fellows went to see Harry. Well Mike said he couldn’t join the group because he had already tried to get a raise. I knew I was being used but I was entitled to a raise. Well Harry said to me, “What can I do for you men?” So I said to Harry: 1) Living costs were going up; 2) We deserved a raise. So Harry said, “How much?” and I said ten cents an hour would be a fair raise. So he said I’ll give you a nickel an hour raise and later you’ll get the other nickel. We agreed. So, I asked Harry will everyone get a raise and he replied, “Only the ones that I think deserve it.”

Well a month later I was drinking water at the bubbler and Harry saw me and said what a hard job they had to get the money to pay our raises. Well, Willie, Harry Callahan and his brother Sam and their two other Italian brother partners all died millionaires. No other truer saying than, “That the rich have no sympathy or use for the poor.”

My dad was no political radical.  He later became a firefighter and served for more than 30 years before retiring.  It’s precisely because my dad wasn’t a political firebrand that his words resonate so powerfully: “That the rich have no sympathy or use for the poor.”

It’s a good lesson to keep in mind.  Isn’t it high time we put Labor back in Labor Day weekend?

American Kleptocracy under Trump

W.J. Astore

Seven years ago, I wrote an article for TomDispatch.com on American kleptocracy.  At the time, it seemed a bit of a stretch.  Sure, America was (and is) plutocratic.  But kleptocratic?  Like a third-world dictatorship in which family members of the ruler enrich themselves while being appointed to government offices for which they’re eminently unqualified?  Surely not!  But here we are, in 2017, with Trump as president and his son-in-law Jared Kushner seemingly running everything and with daughter Ivanka the “First Daughter” and pseudo-First Lady.  I didn’t see that one coming.

"Charles James: Beyond Fashion" Costume Institute Gala - Arrivals
Jared and Ivanka: Good at looking good

Anyway, here’s my original article, unedited, from 2010.

American Kleptocracy
How Fears of Socialism and Fascism Hide Naked Theft 

By William J. Astore

Kleptocracy — now, there’s a word I was taught to associate with corrupt and exploitative governments that steal ruthlessly and relentlessly from the people.  It’s a word, in fact, that’s usually applied to flawed or failed governments in Africa, Latin America, or the nether regions of Asia.  Such governments are typically led by autocratic strong men who shower themselves and their cronies with all the fruits of extracted wealth, whether stolen from the people or squeezed from their country’s natural resources.  It’s not a word you’re likely to see associated with a mature republic like the United States led by disinterested public servants and regulated by more-or-less transparent principles and processes.

In fact, when Americans today wish to critique or condemn their government, the typical epithets used are “socialism” or “fascism.”  When my conservative friends are upset, they send me emails with links to material about “ObamaCare” and the like.  These generally warn of a future socialist takeover of the private realm by an intrusive, power-hungry government.  When my progressive friends are upset, they send me emails with links pointing to an incipient fascist takeover of our public and private realms, led by that same intrusive, power-hungry government (and, I admit it, I’m hardly innocent when it comes to such “what if” scenarios).

What if, however, instead of looking at where our government might be headed, we took a closer look at where we are — at the power-brokers who run or influence our government, at those who are profiting and prospering from it?  These are, after all, the “winners” in our American world in terms of the power they wield and the wealth they acquire.  And shouldn’t we be looking as well at those Americans who are losing — their jobs, their money, their homes, their healthcare, their access to a better way of life — and asking why?

If we were to take an honest look at America’s blasted landscape of “losers” and the far shinier, spiffier world of “winners,” we’d have to admit that it wasn’t signs of onrushing socialism or fascism that stood out, but of staggeringly self-aggrandizing greed and theft right in the here and now.  We’d notice our public coffers being emptied to benefit major corporations and financial institutions working in close alliance with, and passing on remarkable sums of money to, the representatives of “the people.”  We’d see, in a word, kleptocracy on a scale to dazzle.  We would suddenly see an almost magical disappearing act being performed, largely without comment, right before our eyes.

Of Red Herrings and Missing Pallets of Money

Think of socialism and fascism as the red herrings of this moment or, if you’re an old time movie fan, as Hitchcockian MacGuffins  — in other words, riveting distractions.  Conservatives and tea partiers fear invasive government regulation and excessive taxation, while railing against government takeovers — even as corporate lobbyists write our public healthcare bills to favor private interests.  Similarly, progressives rail against an emergent proto-fascist corps of private guns-for-hire, warrantless wiretapping, and the potential government-approved assassination of U.S. citizens, all sanctioned by a perpetual, and apparently open-ended, state of war.

Yet, if this is socialism, why are private health insurers the government’s go-to guys for healthcare coverage?  If this is fascism, why haven’t the secret police rounded up tea partiers and progressive critics as well and sent them to the lager or the gulag?

Consider this: America is not now, nor has it often been, a hotbed of political radicalism.  We have no substantial socialist or workers’ party.  (Unless you’re deluded, please don’t count the corporate-friendly “Democrat” party here.)  We have no substantial fascist party.  (Unless you’re deluded, please don’t count the cartoonish “tea partiers” here; these predominantly white, graying, and fairly affluent Americans seem most worried that the jackbooted thugs will be coming for them.)

What drives America today is, in fact, business — just as was true in the days of Calvin Coolidge.  But it’s not the fair-minded “free enterprise” system touted in those freshly revised Texas guidelines for American history textbooks; rather, it’s a rigged system of crony capitalism that increasingly ends in what, if we were looking at some other country, we would recognize as an unabashed kleptocracy.

Recall, if you care to, those pallets stacked with hundreds of millions of dollars that the Bush administration sent to Iraq and which, Houdini-like, simply disappeared.  Think of the ever-rising cost of our wars in Iraq and Afghanistan, now in excess of a trillion dollars, and just whose pockets are full, thanks to them.

If you want to know the true state of our government and where it’s heading, follow the money (if you can) and remain vigilant: our kleptocratic Houdinis are hard at work, seeking to make yet more money vanish from your pockets — and reappear in theirs.

From Each According to His Gullibility — To Each According to His Greed

Never has the old adage my father used to repeat to me — “the rich get richer and the poor poorer” — seemed fresher or truer.  If you want confirmation of just where we are today, for instance, consider this passage from a recent piece by Tony Judt:

In 2005, 21.2 percent of U.S. national income accrued to just 1 percent of earners.  Contrast 1968, when the CEO of General Motors took home, in pay and benefits, about sixty-six times the amount paid to a typical GM worker.  Today the CEO of Wal-Mart earns nine hundred times the wages of his average employee.  Indeed, the wealth of the Wal-Mart founder’s family in 2005 was estimated at about the same ($90 billion) as that of the bottom 40 percent of the U.S. population: 120 million people.

Wealth concentration is only one aspect of our increasingly kleptocratic system.  War profiteering by corporations (however well disguised as heartfelt support for our heroic warfighters) is another.  Meanwhile, retired senior military officers typically line up to cash in on the kleptocratic equivalent of welfare, peddling their “expertise” in return for impressive corporate and Pentagon payouts that supplement their six-figure pensions.  Even that putative champion of the Carhartt-wearing common folk, Sarah Palin, pocketed a cool $12 million last year without putting the slightest dent in her populist bona fides.

Based on such stories, now legion, perhaps we should rewrite George Orwell’s famous tagline from Animal Farm as: All animals are equal, but a few are so much more equal than others.

And who are those “more equal” citizens?  Certainly, major corporations, which now enjoy a kind of political citizenship and the largesse of a federal government eager to rescue them from their financial mistakes, especially when they’re judged “too big to fail.”  In raiding the U.S. Treasury, big banks and investment firms, shamelessly ready to jack up executive pay and bonuses even after accepting billions in taxpayer-funded bailouts, arguably outgun militarized multinationals in the conquest of the public realm and the extraction of our wealth for their benefit.

Such kleptocratic outfits are, of course, abetted by thousands of lobbyists and by politicians who thrive off corporate campaign contributions.  Indeed, many of our more prominent public servants have proved expert at spinning through the revolving door into the private sector.  Even ex-politicians who prefer to be seen as sympathetic to the little guy like former House Majority Leader Dick Gephardt eagerly cash in.

I’m Shocked, Shocked, to Find Profiteering Going on Here

An old Roman maxim enjoins us to “let justice be done, though the heavens fall.”  Within our kleptocracy, the prevailing attitude is an insouciant “We’ll get ours, though the heavens fall.”  This mindset marks the decline of our polity.  A spirit of shared sacrifice, dismissed as hopelessly naïve, has been replaced by a form of tribalized privatization in which insiders find ways to profit no matter what.

Is it any surprise then that, in seeking to export our form of government to Iraq and Afghanistan, we’ve produced not two model democracies, but two emerging kleptocracies, fueled respectively by oil and opium?

When we confront corruption in Iraq or Afghanistan, are we not like the police chief in the classic movie Casablanca who is shocked, shocked to find gambling going on at Rick’s Café, even as he accepts his winnings?

Why then do we bother to feign shock when Iraqi and Afghan elites, a tiny minority, seek to enrich themselves at the expense of the majority?

Shouldn’t we be flattered?  Imitation, after all, is the sincerest form of flattery.  Isn’t it?

Trump’s Emerging Kleptocracy

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Trump’s latest “con man” hat puts USA front and center, with 45 on the side (Trump, sadly, will be America’s 45th president, unless widespread sanity breaks out)

W.J. Astore

Back in 2010, I wrote an article for TomDispatch.com in which I compared the U.S. government and its corporate handlers to a kleptocracy.  Here’s what I wrote:

What drives America today is, in fact, business — just as was true in the days of Calvin Coolidge. But it’s not the fair-minded “free enterprise” system touted in those freshly revised Texas guidelines for American history textbooks; rather, it’s a rigged system of crony capitalism that increasingly ends in what, if we were looking at some other country, we would recognize as an unabashed kleptocracy.

That’s what we’re witnessing right now with Trump and his family: crony capitalism. Unabashed kleptocracy.  It’s nothing new, except now it’s being done openly and unapologetically by the president-elect, who claims the law of the land says he can’t have conflicts of interest, because as president he’s exempted from those laws.

Recall the saying that history repeats itself, first as tragedy and then as farce.  Trump is both tragedy and farce, but more than anything, he’s a tragedy for our democracy.

Here’s more of what I wrote back in 2010.  It’s prescient, I think, and I’m not proud to say that:

An old Roman maxim enjoins us to “let justice be done, though the heavens fall.”  Within our kleptocracy, the prevailing attitude is an insouciant “We’ll get ours, though the heavens fall.”  This mindset marks the decline of our polity.  A spirit of shared sacrifice, dismissed as hopelessly naïve, has been replaced by a form of tribalized privatization in which insiders find ways to profit no matter what.

Tom Engelhardt documents Trump’s opportunistic greed in his latest introduction to Nick Turse’s humorously painful article on the farce that is Trump.  Here’s what Engelhardt has to say about Trump’s emerging kleptocracy:

Trump is a family man in every sense of the word. His business is a family business. No matter what anyone tells you, there’s no more way to separate him from his brand, with his kids running it, than there is to separate a shark from the ocean or Ivanka from her line of jewelry. There’s no way this administration can be anything but a walking, talking conflict of interest of a kind never before seen or even imagined in this country.  It’s easy, in fact, to guarantee one thing: that foreign business and political interests will have a field day when it comes to applying pressure to the new American president.

Truer words were never written.  Imagine placing Gordon “Greed is Good” Gekko (he of cinematic “Wall Street” infamy) in charge of America, and that’s Trump, except Trump seems to have even fewer scruples.

Anyway, the intrepid Nick Turse journeyed to Trump Tower in Manhattan to survey the farce that is the Trump transition team.  I urge you to read his article in full, but here’s his conclusion:

Descending the switchback escalators [in the Trump Tower], I found myself gazing at the lobby where a scrum of reporters stood waiting for golden elevator doors to open, potentially disgorging a Trump family member or some other person hoping to serve at the pleasure of the next president. Behind me water cascaded several stories down a pink marble wall, an overblown monument to a bygone age of excess.  Ahead of me, glass cases filled with Trump/Pence 2016 T-shirts, colognes with the monikers “Empire” and “Success,” the iconic red “Make America Great Again” one-size-fits-all baseball cap, stuffed animals, and other tchotchkes stood next to an overflowing gilded garbage can.  Heading for the door, I thought about all of this and Joe [a secret service agent] and his commando-chic colleague and Trump’s deserted private-public park, and the army of cops, the metal barricades, and the circus that awaited me on the street.  I felt I’d truly been given some hint of the future, a whisper of what awaits. I also felt certain I’d be returning to Trump Tower — and soon.

Circus, indeed.  Trump has mastered that, but will he provide the bread as well to complete the bread and circuses pairing?  And will the people be satisfied with empty spectacle and a few crumbs of bread as Trump takes America for a kleptocratic ride?

It was said about the Emperor Nero that he fiddled while Rome burned.  Instead of fiddling, Trump, one assumes, will make deals and sell trinkets, all for his personal profit, even as American democracy burns.

Welcome to kleptocracy in the open, America.  As the inferno rages, remember this happy fact: For only $10,000 you too can wear Ivanka’s bracelet!

bracelet-question-still-shoppable
One bracelet to bring them all and in the darkness bind them.