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[audience applauding]
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- It is such a great
honor to be here tonight
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00:00:54,344 --> 00:00:56,206
to make this introduction.
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As we're standing here, I was
thinking back 14 years ago.
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It was 1995.
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It was mid-November.
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There was a forum
on globalization
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that was taking place
here at Riverside.
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And it was there that I
heard the announcement
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that Ken Saro-Wiwa and
eight other Ogoni activists
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00:01:26,206 --> 00:01:29,103
had been executed in Nigeria.
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00:01:30,655 --> 00:01:34,965
Ken Saro-Wiwa, who is the
writer-environmentalist
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00:01:34,965 --> 00:01:38,413
who had dared to
take on the nexus
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00:01:38,413 --> 00:01:41,310
of corporate and military power,
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00:01:41,310 --> 00:01:46,310
the military dictatorship of
Nigeria, and Shell Corporation,
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which had crisscrossed his
land in the Niger Delta,
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00:01:50,931 --> 00:01:55,931
Ogoniland, with gas
pipelines above the ground
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burning off the gas in flares
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00:02:00,241 --> 00:02:02,827
the size of apartment buildings,
20
00:02:02,827 --> 00:02:07,827
the children of the Niger Delta
never knowing a dark night,
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00:02:08,965 --> 00:02:10,931
and yet not profiting
from the drilling
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00:02:12,034 --> 00:02:14,482
and taking the power
out of the Earth
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and giving it to the
most powerful on Earth,
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00:02:17,206 --> 00:02:20,551
disempowering the
host communities from
which it had come.
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00:02:21,965 --> 00:02:26,827
I had met Ken Saro-Wiwa in
1994, when a Nigerian activist
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00:02:27,965 --> 00:02:31,103
brought him into
the studios of WBAI.
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We were doing Wakeup
Call that morning
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and Bernard White and I
sat there as Ken Saro-Wiwa,
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who was not one of the
scheduled guests that morning,
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00:02:44,655 --> 00:02:45,551
held forth.
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And he told the story of what
he was confronting in Nigeria,
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00:02:54,000 --> 00:02:56,068
saying the world had to know,
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00:02:57,275 --> 00:03:00,206
and ending by saying,
"I am a marked man."
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00:03:01,275 --> 00:03:04,827
He returned to Nigeria,
was imprisoned,
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00:03:04,827 --> 00:03:07,517
was tried, and he was executed.
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00:03:09,000 --> 00:03:14,000
Last week, as we sat in the
studios of Democracy Now,
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00:03:15,413 --> 00:03:18,000
we broadcast the voice of
Ken from those days on WBAI
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00:03:19,793 --> 00:03:22,275
and we broadcast
his son, Ken Wiwa,
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00:03:23,413 --> 00:03:27,241
who was announcing
that they had just won
40
00:03:28,379 --> 00:03:33,103
a settlement with Shell
that took 14 years,
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00:03:34,551 --> 00:03:38,655
but they would then win $15.5
million for the Wiwa family
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00:03:41,379 --> 00:03:44,000
and other victims and
the people of Ogoniland.
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[audience applauding]
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00:03:51,517 --> 00:03:55,931
We also played the words
of Ken Saro-Wiwa's father,
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00:03:55,931 --> 00:04:00,103
Jim Wiwa, who Jeremy
Scahill and I got to meet
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00:04:00,103 --> 00:04:02,620
in the Niger Delta in Ogoniland
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00:04:02,620 --> 00:04:06,517
when we visited three
years after Ken's death,
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00:04:06,517 --> 00:04:08,931
when Jim Wiwa said
directly to us,
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00:04:08,931 --> 00:04:12,310
"Shell is responsible
for my son's death."
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00:04:13,551 --> 00:04:16,413
And as we sat there
listening to the father,
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00:04:16,413 --> 00:04:18,310
the son, and the grandson,
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I was sitting next to
Judith Brown Chomsky;
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00:04:22,310 --> 00:04:25,448
she was our guest for the hour.
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00:04:25,448 --> 00:04:29,586
Judith Brown Chomsky was
one of the leading attorneys
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00:04:29,586 --> 00:04:33,793
in this case that led to
this landmark settlement.
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00:04:34,931 --> 00:04:37,586
When I asked Noam tonight
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00:04:37,586 --> 00:04:40,482
how he would like to
be introduced, he said,
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00:04:40,482 --> 00:04:43,896
"Tell them I'm the
brother-in-law of
Judith Brown Chomsky."
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00:04:43,896 --> 00:04:45,310
[audience laughing]
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00:04:45,310 --> 00:04:48,482
[audience applauding]
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00:04:55,655 --> 00:05:00,655
Judith is married to Noam's
younger brother, David.
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00:05:02,000 --> 00:05:06,310
Noam was born December
7th, 1928, in Philadelphia.
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00:05:08,000 --> 00:05:13,000
By the age of 10, he was
writing an extended essay
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00:05:14,413 --> 00:05:17,896
against fascism and about
the Spanish Civil War.
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00:05:17,896 --> 00:05:19,068
[audience laughing]
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00:05:19,068 --> 00:05:20,448
Don't be discouraged.
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00:05:20,448 --> 00:05:24,034
[audience laughing]
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00:05:24,034 --> 00:05:28,586
At 14, he was getting his
education, as he tells it,
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in the back of the 72nd
Street subway station
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00:05:32,137 --> 00:05:33,689
here in New York.
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00:05:33,689 --> 00:05:36,344
You go out the front, that's
where you go buy newspapers
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00:05:36,344 --> 00:05:39,000
in the front newspaper stand
where people would rush by,
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00:05:39,000 --> 00:05:40,724
buy their papers and go.
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00:05:40,724 --> 00:05:43,517
But it was the back,
less-populated stand
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where the stragglers would be,
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where his uncle ran
that newspaper stand,
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and they would sit and
debate and discuss politics.
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00:05:52,137 --> 00:05:54,827
That's where Noam says he
was getting his education.
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00:05:54,827 --> 00:05:57,517
I hear that they just
opened the back again
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00:05:57,517 --> 00:05:59,068
about four years ago,
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00:05:59,068 --> 00:06:01,931
the south side of the 72nd
Street subway station,
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00:06:01,931 --> 00:06:05,137
but I understand they
removed the newspaper stand.
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00:06:05,137 --> 00:06:08,206
Maybe they're a little concerned
about some young Chomskys
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00:06:08,206 --> 00:06:10,172
getting educated for the future.
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00:06:10,172 --> 00:06:11,689
[audience laughing]
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00:06:11,689 --> 00:06:15,000
Well, within two years, that
education clearly got him far,
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00:06:15,000 --> 00:06:19,758
because, at 16, he was at the
University of Pennsylvania,
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00:06:19,758 --> 00:06:24,551
he went on to the Harvard
Society of Fellows,
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00:06:24,551 --> 00:06:27,689
where he continued his
research into linguistics.
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00:06:27,689 --> 00:06:31,482
By 1953, Chomsky had
broken almost entirely
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00:06:31,482 --> 00:06:34,379
from the field as it existed.
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00:06:34,379 --> 00:06:39,379
He became a professor at the
University of Massachusetts,
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00:06:40,793 --> 00:06:44,206
Massachusetts Institute
of Technology in 1955
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00:06:44,206 --> 00:06:46,724
at the age of 26.
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00:06:46,724 --> 00:06:49,241
I forgot to say he'd already
gotten his Ph.D. again
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00:06:49,241 --> 00:06:51,448
at the University
of Pennsylvania.
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00:06:52,896 --> 00:06:57,344
And while he broke ground as
a world-renowned linguist,
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00:06:58,793 --> 00:07:01,827
shattering all previous
paradigms in linguistics,
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00:07:01,827 --> 00:07:04,551
in a world I know
very little about--
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00:07:04,551 --> 00:07:06,620
[audience applauding]
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00:07:06,620 --> 00:07:10,482
He was also taking on
the war in Vietnam,
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00:07:11,896 --> 00:07:16,448
so much so that his lifetime
partner, his wife Carol,
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00:07:17,620 --> 00:07:19,793
went back to school to
get her graduate degree
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00:07:19,793 --> 00:07:23,620
in linguistics so that
she could be, if need be,
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00:07:23,620 --> 00:07:27,275
the breadwinner if
Noam was imprisoned.
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00:07:27,275 --> 00:07:29,448
That's how she described it.
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She went on to be a professor
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00:07:30,965 --> 00:07:35,310
at the Harvard Graduate School
of Education of linguistics
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00:07:35,310 --> 00:07:40,068
and also broke ground on
child language acquisition.
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00:07:41,206 --> 00:07:43,000
Noam and Carol have
known each other
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00:07:43,000 --> 00:07:45,103
since I think he was three
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00:07:46,241 --> 00:07:50,172
and he only lost Carol
a few months ago,
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00:07:50,172 --> 00:07:54,000
this lifetime partnership a
great model for relationships,
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00:07:54,000 --> 00:07:58,137
his personal life also
a model for all of us
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00:07:58,137 --> 00:08:02,241
of what it means to live
a life of integrity.
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00:08:07,206 --> 00:08:12,206
On Democracy Now, we have
interviewed Noam many times
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00:08:13,482 --> 00:08:16,931
and I think about 2002;
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00:08:18,000 --> 00:08:20,724
it was about midnight,
it was May 20th.
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00:08:22,344 --> 00:08:26,206
Journalist Allan Nairn
and I were in East Timor.
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00:08:26,206 --> 00:08:28,275
It was a momentous time.
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00:08:29,724 --> 00:08:34,689
After a quarter of a century
of slaughter, of genocide,
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00:08:36,068 --> 00:08:39,517
the people of East Timor were
celebrating their freedom,
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00:08:39,517 --> 00:08:40,689
those who had survived.
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00:08:41,827 --> 00:08:43,620
The Indonesian
military had killed off
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00:08:43,620 --> 00:08:45,034
a third of the population.
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00:08:46,448 --> 00:08:48,931
And I remember that night
clearly as Kofi Annan,
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00:08:48,931 --> 00:08:51,896
then-UN Secretary
General, took the stage
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00:08:51,896 --> 00:08:53,827
as they were handing
over the power
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00:08:53,827 --> 00:08:56,517
from the United Nations to
the people of East Timor
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00:08:56,517 --> 00:08:59,827
and then Xanana Gusmao, the
rebel leader of East Timor,
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00:08:59,827 --> 00:09:02,034
the founding president
of East Timor,
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00:09:02,034 --> 00:09:05,793
ascended to the podium
and unfurled the flag
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00:09:05,793 --> 00:09:09,344
of the Democratic
Republic of East Timor.
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00:09:09,344 --> 00:09:11,931
The light of the
fireworks was reflected
135
00:09:11,931 --> 00:09:15,931
in the tear-stained faces
of the people of Timor.
136
00:09:15,931 --> 00:09:18,827
They had resisted
and they had won,
137
00:09:18,827 --> 00:09:21,689
at an unbelievably high
price, but they had won.
138
00:09:22,896 --> 00:09:26,586
We were broadcasting
this historic moment
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00:09:26,586 --> 00:09:29,172
over the airwaves
of Pacifica Radio
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00:09:29,172 --> 00:09:31,482
throughout the United States.
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00:09:31,482 --> 00:09:34,379
And at that moment,
we called Noam,
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00:09:34,379 --> 00:09:39,172
because it was Noam
Chomsky, since 1975,
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00:09:39,172 --> 00:09:42,310
actually on his birthday,
on December 7th,
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00:09:42,310 --> 00:09:44,000
when Indonesia
invaded East Timor,
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00:09:44,000 --> 00:09:49,000
who never let this story
die, in so many of his books,
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00:09:50,172 --> 00:09:53,862
so much of his writing,
so many of his speeches,
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00:09:53,862 --> 00:09:57,620
often introducing to
people this point on a map
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00:09:57,620 --> 00:10:00,034
so many thousand miles from us,
149
00:10:01,517 --> 00:10:05,413
and he let people know what
was happening in your name.
150
00:10:05,413 --> 00:10:09,689
It was Noam who told us about
what was happening in Timor
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00:10:09,689 --> 00:10:12,137
and led us to take
us those trips
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00:10:12,137 --> 00:10:14,965
to try to expose
what was happening.
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00:10:14,965 --> 00:10:18,793
And I bet almost everyone
here tonight in this sanctuary
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00:10:18,793 --> 00:10:22,896
has a story about
discovering Noam's writings
155
00:10:22,896 --> 00:10:27,896
or his voice or his words and
how it has changed your life.
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00:10:29,068 --> 00:10:30,793
When I am most affected
as I travel the country
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00:10:30,793 --> 00:10:33,344
are the young soldiers
who come up to me.
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00:10:34,517 --> 00:10:36,517
And when I ask them what
made the difference,
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00:10:36,517 --> 00:10:41,517
why they turned, how they could
be so brave and courageous
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00:10:43,000 --> 00:10:46,448
and resisting war, so often
these young men and women
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00:10:46,448 --> 00:10:51,448
will say, "Someone handed
me a book of Noam Chomsky."
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00:10:52,206 --> 00:10:54,724
[audience applauding]
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00:11:04,275 --> 00:11:08,275
Arundhati Roy said something
wonderful about Noam
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00:11:08,275 --> 00:11:10,344
in her book, War Talk.
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00:11:10,344 --> 00:11:14,068
Arundhati Roy, who spoke
here in May of 2003.
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00:11:15,655 --> 00:11:20,241
She has a chapter, The
Loneliness of Noam Chomsky,
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00:11:20,241 --> 00:11:23,620
where she writes, "When I
first read Noam Chomsky,
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00:11:23,620 --> 00:11:26,517
"it occurred to me that
his marshaling of evidence,
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00:11:26,517 --> 00:11:29,724
"the volume of it, the
relentlessness of it,
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00:11:29,724 --> 00:11:33,103
"was a little, how
shall I put it, insane.
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00:11:33,103 --> 00:11:34,379
[audience laughing]
172
00:11:34,379 --> 00:11:36,724
"Even a quarter of the
evidence he'd compiled
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00:11:36,724 --> 00:11:38,206
"would've been enough
to convince me.
174
00:11:38,206 --> 00:11:41,931
"I used to wonder why he
needed to do so much work.
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00:11:41,931 --> 00:11:44,344
"But now, I understand
that the magnitude
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00:11:44,344 --> 00:11:46,448
"and intensity of Chomsky's work
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00:11:46,448 --> 00:11:50,137
"is a barometer of
the magnitude, scope,
and relentlessness
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00:11:50,137 --> 00:11:53,344
"of the propaganda machine
that he's up against.
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00:11:53,344 --> 00:11:55,344
"He's like the
woodborer who lives
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00:11:55,344 --> 00:11:58,172
"inside the third
rack of my bookshelf.
181
00:11:58,172 --> 00:12:02,344
"Day and night, I hear his jaws
crunching through the wood,
182
00:12:02,344 --> 00:12:04,827
"grinding it to fine dust.
183
00:12:04,827 --> 00:12:07,068
"It's as though he disagrees
with the literature
184
00:12:07,068 --> 00:12:11,241
"and wants to destroy the very
structure on which it rests.
185
00:12:11,241 --> 00:12:13,551
"I call him Chompsky.
186
00:12:13,551 --> 00:12:15,413
[audience laughing]
187
00:12:15,413 --> 00:12:17,689
"Being an American
working in America
188
00:12:17,689 --> 00:12:20,241
"writing to convince
Americans of his point of view
189
00:12:20,241 --> 00:12:24,379
"must really be like having
to tunnel through hard wood.
190
00:12:24,379 --> 00:12:27,344
"Chomsky is one of a
small band of individuals
191
00:12:27,344 --> 00:12:29,655
"fighting a whole industry,
192
00:12:29,655 --> 00:12:33,793
"and that makes him not
only brilliant, but heroic."
193
00:12:35,000 --> 00:12:38,172
[audience applauding]
194
00:12:44,344 --> 00:12:47,068
His work so prolific,
195
00:12:47,068 --> 00:12:51,103
his personal support for
so many so important.
196
00:12:51,103 --> 00:12:54,827
Just this afternoon, Norm
Finkelstein was telling me
197
00:12:54,827 --> 00:12:57,862
how he had visited Noam one
summer at the beginning,
198
00:12:57,862 --> 00:12:59,551
went away, came back at the end,
199
00:12:59,551 --> 00:13:02,310
and Noam had already
written two books.
200
00:13:02,310 --> 00:13:03,793
[audience laughing]
201
00:13:03,793 --> 00:13:07,586
And so he said to a friend,
"Noam just finished two books."
202
00:13:07,586 --> 00:13:10,793
And his friend said, "So, I
read two books this summer too."
203
00:13:10,793 --> 00:13:12,000
[audience laughing]
204
00:13:12,000 --> 00:13:13,793
He said, "No, but
he wrote them."
205
00:13:13,793 --> 00:13:15,862
[audience laughing]
206
00:13:15,862 --> 00:13:20,793
And I think of calling
Noam Chomsky in Turkey.
207
00:13:20,793 --> 00:13:23,379
It was February of 2002.
208
00:13:24,724 --> 00:13:27,275
He had not just
gone there to speak,
209
00:13:27,275 --> 00:13:31,103
but to stand with a young
publisher named Fathi Tas,
210
00:13:32,068 --> 00:13:35,000
who was facing years in prison
211
00:13:35,000 --> 00:13:37,965
for publishing Noam
Chomsky's work.
212
00:13:39,655 --> 00:13:43,551
I called Noam to interview
him before he went to court,
213
00:13:43,551 --> 00:13:47,000
not knowing what would
happen to him as well.
214
00:13:48,310 --> 00:13:51,103
When I rang him up, he
answered the phone and he said,
215
00:13:51,103 --> 00:13:53,551
"Amy, do you know
what time it is?"
216
00:13:53,551 --> 00:13:55,448
I thought I had
calculated correctly.
217
00:13:55,448 --> 00:13:58,310
He said, "It's 4:00
in the morning."
218
00:13:58,310 --> 00:13:59,448
I said, "I can call you back."
219
00:13:59,448 --> 00:14:01,413
He said, "No, I'm up now.
220
00:14:01,413 --> 00:14:02,241
"Let's talk."
221
00:14:03,896 --> 00:14:07,310
But it's that
bravery, that courage,
222
00:14:07,310 --> 00:14:11,275
Noam's resistance to
the war in Vietnam
223
00:14:11,275 --> 00:14:14,413
and his writing about
the wars in Vietnam,
224
00:14:14,413 --> 00:14:16,620
the death squads
in Latin America,
225
00:14:17,724 --> 00:14:20,482
what happened to
Vietnam and Cambodia,
226
00:14:20,482 --> 00:14:24,103
what is happening today
in Israel and Palestine,
227
00:14:24,103 --> 00:14:27,137
his opposition to
the wars in Iraq,
228
00:14:27,137 --> 00:14:32,137
his relentlessness that is
such an inspiration to us all.
229
00:14:33,413 --> 00:14:34,482
I think--
230
00:14:34,482 --> 00:14:36,068
[audience applauding]
231
00:14:36,068 --> 00:14:40,000
Looking at The Essential
Chomsky, edited
by Anthony Arnove,
232
00:14:40,000 --> 00:14:42,827
this bookcase that
is on the cover
233
00:14:43,965 --> 00:14:46,517
is filled with Noam
Chomsky's books.
234
00:14:46,517 --> 00:14:49,448
He's written over
a hundred of them.
235
00:14:50,448 --> 00:14:52,137
And it's not just writing,
236
00:14:53,586 --> 00:14:58,448
because when he explodes the
lies, he is saving lives,
237
00:14:59,620 --> 00:15:02,655
because the lies take lives.
238
00:15:07,206 --> 00:15:09,827
I don't know who
said this quote,
239
00:15:12,344 --> 00:15:13,724
but someone once said,
240
00:15:15,724 --> 00:15:18,793
"I think back on my
life at all the times
241
00:15:18,793 --> 00:15:21,103
"I thought I went too far,
242
00:15:21,103 --> 00:15:24,344
"and I realize now I
didn't go far enough."
243
00:15:25,758 --> 00:15:30,310
Well, I think Noam Chomsky
has clearly gone the distance.
244
00:15:31,413 --> 00:15:35,448
And as we celebrate
his 80 years,
245
00:15:36,862 --> 00:15:40,896
I am encouraged by a woman
who told me about celebrating
246
00:15:40,896 --> 00:15:44,379
her grandmother's
106th birthday.
247
00:15:44,379 --> 00:15:48,000
And her grandmother stood
up at her party and said,
248
00:15:48,000 --> 00:15:50,344
"Ah, to be 100 again."
249
00:15:50,344 --> 00:15:51,586
[audience laughing]
250
00:15:51,586 --> 00:15:53,413
We look forward to
hearing Noam Chomsky
251
00:15:53,413 --> 00:15:57,103
for many years to come,
beginning with tonight.
252
00:15:57,103 --> 00:15:58,413
Noam Chomsky.
253
00:15:58,413 --> 00:16:01,586
[audience applauding]
254
00:16:36,862 --> 00:16:38,310
- Thanks.
255
00:16:38,310 --> 00:16:41,689
It was really exciting to
watch Amy a couple of days ago
256
00:16:41,689 --> 00:16:43,896
when she was interviewing Judy.
257
00:16:46,310 --> 00:16:48,413
It's an amazing achievement.
258
00:16:48,413 --> 00:16:50,482
I won't go into the whole story,
259
00:16:50,482 --> 00:16:55,482
but it took a lot of
courage and effort
260
00:16:56,689 --> 00:16:58,448
to win a completely
unprecedented case.
261
00:16:58,448 --> 00:17:01,000
I don't think there's
ever been a case
262
00:17:01,000 --> 00:17:04,586
of a settlement like that that
was, where the evidence was,
263
00:17:04,586 --> 00:17:07,620
which she had in fact
gathered in Nigeria,
264
00:17:07,620 --> 00:17:12,000
was so strong that the
corporation not only settled,
265
00:17:12,000 --> 00:17:15,551
but even allowed the
settlement to be public,
266
00:17:15,551 --> 00:17:16,896
indicating their concern
267
00:17:16,896 --> 00:17:19,862
that they might be
exposed in a trial.
268
00:17:22,448 --> 00:17:26,000
Well, let me say a couple
of words about the title,
269
00:17:26,000 --> 00:17:28,517
which, as always, is shorthand.
270
00:17:29,689 --> 00:17:33,551
There's too much
nuance and variety
271
00:17:33,551 --> 00:17:37,620
to make any sharp distinction
between us and them.
272
00:17:38,724 --> 00:17:41,379
And, of course, neither
I nor anyone else
273
00:17:41,379 --> 00:17:46,379
can presume to speak for us,
but I'll pretend it's possible.
274
00:17:47,827 --> 00:17:50,034
There's also a problem
about the word crisis.
275
00:17:51,379 --> 00:17:53,896
Which one do we have in mind?
276
00:17:53,896 --> 00:17:56,793
There are numerous
very severe crises.
277
00:17:59,172 --> 00:18:03,620
Many of them will be
under discussion here
278
00:18:03,620 --> 00:18:06,103
in a couple of weeks
at the United Nations
279
00:18:06,103 --> 00:18:07,344
and their conference
280
00:18:07,344 --> 00:18:11,551
on the world financial
and economic crisis.
281
00:18:12,827 --> 00:18:17,000
And these crises are
interwoven in very complex ways
282
00:18:18,620 --> 00:18:21,517
which preclude any
sharp separation.
283
00:18:21,517 --> 00:18:24,482
But again, I'll pretend
otherwise for simplicity.
284
00:18:25,931 --> 00:18:30,413
Well, one way to enter this
morass was helpfully provided
285
00:18:30,413 --> 00:18:34,931
by a current issue of the New
York Review, dated yesterday.
286
00:18:36,034 --> 00:18:38,655
The front cover headline reads,
287
00:18:38,655 --> 00:18:40,896
"How to Deal with the Crisis,"
288
00:18:40,896 --> 00:18:44,551
and features a symposium
of specialists.
289
00:18:44,551 --> 00:18:46,379
And it's worth reading,
290
00:18:46,379 --> 00:18:50,827
but with attention to the
definite article, the crisis.
291
00:18:52,000 --> 00:18:55,137
For the West, the
phrase "the crisis"
292
00:18:55,137 --> 00:18:57,034
has a clear enough meaning.
293
00:18:57,034 --> 00:19:01,931
It's the financial crisis
that hit the rich countries
294
00:19:01,931 --> 00:19:04,379
and therefore is of
supreme importance.
295
00:19:05,551 --> 00:19:07,758
But in fact, even for
the rich and privileged,
296
00:19:07,758 --> 00:19:09,793
that's by no means
the only crisis
297
00:19:09,793 --> 00:19:13,172
or even the most severe
of those they face.
298
00:19:13,172 --> 00:19:16,000
And others see the
world quite differently.
299
00:19:17,448 --> 00:19:21,758
For example, the newspaper
New Nation in Bangladesh,
300
00:19:23,344 --> 00:19:27,206
there we read, "It's very
telling that trillions
301
00:19:27,206 --> 00:19:29,862
"have already been
spent to patch up
302
00:19:29,862 --> 00:19:33,000
"leading world
financial institutions,
303
00:19:33,000 --> 00:19:35,517
"while out of the
comparatively small sum
304
00:19:35,517 --> 00:19:39,827
"of $12 billion pledged
in Rome earlier this year
305
00:19:39,827 --> 00:19:42,172
"to offset the food crisis,
306
00:19:42,172 --> 00:19:44,413
"only $1 billion
has been delivered.
307
00:19:45,551 --> 00:19:48,413
"The hope that at
least extreme poverty
308
00:19:48,413 --> 00:19:52,724
"can be eradicated
by the end of 2015,
309
00:19:52,724 --> 00:19:56,413
"as stipulated in the UN's
Millennium Development Goals,
310
00:19:56,413 --> 00:20:01,413
"seems as unrealistic as ever,
not due to lack of resources
311
00:20:02,758 --> 00:20:06,068
"but to a lack of true
concern for the world's poor."
312
00:20:09,689 --> 00:20:12,275
They're talking about
approximately a billion people
313
00:20:13,517 --> 00:20:17,000
facing starvation,
severe malnutrition,
314
00:20:17,965 --> 00:20:20,172
even 30-40 million of them
315
00:20:20,172 --> 00:20:22,310
in the richest
country in the world.
316
00:20:22,310 --> 00:20:24,827
That's a real crisis and
it's getting much worse.
317
00:20:26,241 --> 00:20:30,758
In this morning's Financial
Times, British business press,
318
00:20:30,758 --> 00:20:33,310
it's reported that
the World Food Program
319
00:20:33,310 --> 00:20:38,310
just announced that they're
cutting food aid and rations
320
00:20:39,206 --> 00:20:40,793
and also closing operations.
321
00:20:42,275 --> 00:20:45,000
The reason is that
the donor countries
322
00:20:46,482 --> 00:20:50,689
have been cutting back funding
because of the fiscal crunch
323
00:20:50,689 --> 00:20:53,068
and they're slashing
contributions.
324
00:20:53,068 --> 00:20:54,724
So, there's a very
close connection
325
00:20:54,724 --> 00:20:58,000
between the
horrendous food crisis
326
00:20:58,000 --> 00:21:00,931
and poverty crisis
and the significant,
327
00:21:00,931 --> 00:21:04,172
but less significant,
fiscal crisis.
328
00:21:04,172 --> 00:21:06,827
They're ending up
closing down operations
329
00:21:06,827 --> 00:21:11,758
in Rwanda and Uganda,
Ethiopia, many others.
330
00:21:11,758 --> 00:21:15,000
They have to 20-25%
cut in budget
331
00:21:15,000 --> 00:21:20,000
while food prices are rising
and the financial crisis,
332
00:21:20,896 --> 00:21:22,379
the general economic crisis,
333
00:21:22,379 --> 00:21:25,586
is bringing unemployment and
cutting back remittances.
334
00:21:27,586 --> 00:21:29,551
That's a major crisis.
335
00:21:31,000 --> 00:21:35,413
We might incidentally remember
that when the British landed
336
00:21:36,344 --> 00:21:38,655
in what's now Bangladesh,
337
00:21:38,655 --> 00:21:41,655
they were stunned by
its wealth and splendor.
338
00:21:42,827 --> 00:21:45,241
And didn't take long
for it to be on its way
339
00:21:45,241 --> 00:21:50,241
to become the very symbol of
misery, not by an act of God.
340
00:21:51,965 --> 00:21:56,068
Well, the fate of
Bangladesh should remind us
341
00:21:56,068 --> 00:22:00,310
that the terrible food
crisis is not just a result
342
00:22:00,310 --> 00:22:02,000
of Western lack of concern.
343
00:22:03,344 --> 00:22:06,965
In large part, it results
from very definite
344
00:22:06,965 --> 00:22:10,724
and clear concerns of
the global managers,
345
00:22:10,724 --> 00:22:12,172
namely for their own welfare.
346
00:22:13,655 --> 00:22:18,206
It's always well to keep in
mind the astute observation
347
00:22:18,206 --> 00:22:23,206
by Adam Smith about policy
formation in England.
348
00:22:24,344 --> 00:22:27,103
He recognized that
what he called
349
00:22:27,103 --> 00:22:29,931
the principle
architects of policy,
350
00:22:29,931 --> 00:22:32,517
in his day the merchants
and manufacturers,
351
00:22:33,620 --> 00:22:35,931
make sure that
their own interests
352
00:22:35,931 --> 00:22:39,000
are most peculiarly attended to,
353
00:22:39,000 --> 00:22:42,793
however grievous the
impact on others,
354
00:22:42,793 --> 00:22:44,965
including the people of England,
355
00:22:44,965 --> 00:22:47,827
but far more so those
who were subjected
356
00:22:47,827 --> 00:22:51,482
to what he called the savage
injustice of the Europeans
357
00:22:51,482 --> 00:22:55,793
and particularly in conquered
India, his own prime concern.
358
00:22:57,620 --> 00:23:00,586
We can easily think
of analogs today.
359
00:23:01,758 --> 00:23:03,379
His observation, in fact,
360
00:23:03,379 --> 00:23:07,586
is one of the few solid
and enduring principles
361
00:23:07,586 --> 00:23:10,827
of international and
domestic affairs.
362
00:23:10,827 --> 00:23:12,689
Well to keep in mind.
363
00:23:12,689 --> 00:23:14,724
And the food crisis
is a case in point.
364
00:23:15,896 --> 00:23:19,137
It erupted first and
most dramatically
365
00:23:19,137 --> 00:23:23,000
in Haiti in early 2008.
366
00:23:24,448 --> 00:23:29,034
Like Bangladesh, Haiti is
a symbol of utter misery.
367
00:23:30,482 --> 00:23:34,931
And like Bangladesh, when the
European explorers arrived,
368
00:23:35,793 --> 00:23:37,689
they were stunned because it was
369
00:23:37,689 --> 00:23:40,931
so remarkably rich in resources.
370
00:23:40,931 --> 00:23:44,689
Later, it became the source
of much of France's wealth.
371
00:23:44,689 --> 00:23:47,103
I'm not gonna run through
the sordid history,
372
00:23:47,103 --> 00:23:50,551
it's worth knowing, but
the current food crisis
373
00:23:50,551 --> 00:23:55,551
traces back directly to Woodrow
Wilson's invasion of Haiti,
374
00:23:57,344 --> 00:24:00,137
which was murderous and
brutal and destructive.
375
00:24:01,172 --> 00:24:04,103
Among Wilson's many crimes
376
00:24:04,103 --> 00:24:07,758
was to dissolve the Haitian
Parliament at gunpoint
377
00:24:08,793 --> 00:24:10,413
because it refused to pass
378
00:24:10,413 --> 00:24:13,103
what was called
progressive legislation
379
00:24:13,103 --> 00:24:17,000
which would allow US businesses
to take over Haitian lands.
380
00:24:18,206 --> 00:24:21,413
Wilson's Marines then
ran a free election
381
00:24:22,896 --> 00:24:27,413
in which the legislation was
passed by 99.9% of the vote.
382
00:24:28,793 --> 00:24:31,931
That's of the 5% of the
population permitted to vote.
383
00:24:33,068 --> 00:24:35,448
All of this comes down to us
384
00:24:35,448 --> 00:24:38,068
as what's called
Wilsonian idealism.
385
00:24:39,862 --> 00:24:43,724
Later, USAID instituted
programs in Haiti
386
00:24:45,448 --> 00:24:47,310
under the slogan
of turning Haiti
387
00:24:47,310 --> 00:24:49,413
into the Taiwan of the Caribbean
388
00:24:51,000 --> 00:24:55,413
by adhering to the
sacred principle of
comparable advantage.
389
00:24:56,827 --> 00:24:58,931
That is, they should import
from the United States,
390
00:24:58,931 --> 00:25:02,103
while working
people, mostly women,
391
00:25:02,103 --> 00:25:04,551
slaved under
miserable conditions
392
00:25:04,551 --> 00:25:06,413
in US-owned assembly plants.
393
00:25:07,862 --> 00:25:11,413
Haiti's first free
election in 1990
394
00:25:11,413 --> 00:25:15,310
threatened these economically
rational programs.
395
00:25:15,310 --> 00:25:17,862
The poor majority
made the mistake
396
00:25:17,862 --> 00:25:20,103
of entering the political arena
397
00:25:20,103 --> 00:25:22,586
and electing their
own candidate,
398
00:25:22,586 --> 00:25:25,793
Jean-Bertrand Aristide,
a populist priest.
399
00:25:25,793 --> 00:25:28,034
And Washington instantly adopted
400
00:25:28,034 --> 00:25:30,551
standard operating procedures,
401
00:25:30,551 --> 00:25:33,172
moving at once to
undermine the regime.
402
00:25:33,172 --> 00:25:36,793
A couple of months later
came the military coup,
403
00:25:36,793 --> 00:25:39,896
instituting a horrible
reign of terror
404
00:25:39,896 --> 00:25:43,241
which was backed
by Bush, Bush I,
405
00:25:43,241 --> 00:25:45,137
and even more so by Clinton.
406
00:25:46,379 --> 00:25:50,620
By 1994, Clinton decided
that the population
407
00:25:50,620 --> 00:25:53,068
was sufficiently intimidated
408
00:25:53,068 --> 00:25:56,689
and he sent US forces to
restore the elected president,
409
00:25:58,034 --> 00:26:00,551
that's now called a
humanitarian intervention,
410
00:26:00,551 --> 00:26:03,137
but on very strict conditions,
411
00:26:03,137 --> 00:26:04,827
namely that the
president had to accept
412
00:26:04,827 --> 00:26:07,862
a very harsh neoliberal regime;
413
00:26:07,862 --> 00:26:10,586
in particular, no
protection for the economy.
414
00:26:12,137 --> 00:26:16,103
Haitian rice farmers
are quite efficient,
415
00:26:16,103 --> 00:26:19,793
but they can't compete
with US agrobusiness
416
00:26:19,793 --> 00:26:22,862
that relies on a huge
government subsidy,
417
00:26:22,862 --> 00:26:27,862
thanks to Ronald Reagan's
free market enthusiasms.
418
00:26:29,000 --> 00:26:30,137
Well, there's nothing
at all surprising
419
00:26:30,137 --> 00:26:31,620
about what followed next.
420
00:26:33,172 --> 00:26:38,172
In 1995, USAID wrote
a report pointing out,
421
00:26:39,586 --> 00:26:41,724
and I'm quoting it,
"That the export-driven
422
00:26:41,724 --> 00:26:45,896
"trade and investment policy
that Washington mandated
423
00:26:45,896 --> 00:26:49,000
"will relentlessly squeeze
the domestic rice farmer."
424
00:26:50,379 --> 00:26:53,689
In fact, the neoliberal policies
rammed down Haiti's throat
425
00:26:57,413 --> 00:27:01,241
destroyed, dismantled what was
left of economic sovereignty,
426
00:27:01,241 --> 00:27:03,379
drove the country into chaos.
427
00:27:03,379 --> 00:27:06,586
That was accelerating
by Bush II's
428
00:27:06,586 --> 00:27:11,172
banning of international aid
on totally cynical grounds.
429
00:27:12,551 --> 00:27:17,241
In February 2004, the two
traditional torturers of Haiti,
430
00:27:17,241 --> 00:27:19,931
France and the United States,
431
00:27:19,931 --> 00:27:22,896
combined to back a military coup
432
00:27:22,896 --> 00:27:26,448
and send President
Aristide off to Africa.
433
00:27:26,448 --> 00:27:31,448
The US denies him permission
to return to the entire region.
434
00:27:32,862 --> 00:27:35,965
Haiti had, by then, lost
the capacity to feed itself,
435
00:27:35,965 --> 00:27:40,172
making it highly vulnerable
to food price fluctuation.
436
00:27:40,172 --> 00:27:44,689
That was the immediate cause
of the 2008 food crisis,
437
00:27:44,689 --> 00:27:48,931
which led to riots
and enormous protests,
438
00:27:48,931 --> 00:27:50,241
but not getting food.
439
00:27:51,448 --> 00:27:53,000
The story's familiar,
440
00:27:54,206 --> 00:27:57,620
in fact quite similar
in much of the world.
441
00:27:57,620 --> 00:28:00,344
So, going back to the
Bangladesh newspaper,
442
00:28:00,344 --> 00:28:04,241
it's true enough
that the food crisis
443
00:28:04,241 --> 00:28:07,586
results from Western
lack of concern;
444
00:28:08,586 --> 00:28:10,620
a pittance by our standards
445
00:28:10,620 --> 00:28:13,448
would overcome its
worst immediate effects.
446
00:28:13,448 --> 00:28:17,827
But more fundamentally, it
results from the dedication
447
00:28:17,827 --> 00:28:22,827
to Adam Smith's principles
of business-run state policy.
448
00:28:24,206 --> 00:28:27,689
These are all matters
that we too easily evade.
449
00:28:27,689 --> 00:28:30,310
They happen daily,
along with the fact
450
00:28:30,310 --> 00:28:34,517
that bailing out banks is
not uppermost in the minds
451
00:28:34,517 --> 00:28:37,931
of the billion people
now facing starvation,
452
00:28:39,068 --> 00:28:41,827
not forgetting the
tens of millions
453
00:28:43,172 --> 00:28:45,793
enduring hunger in the
richest country in the world.
454
00:28:46,965 --> 00:28:51,793
Well, also sidelined
is an easy way to make
455
00:28:53,172 --> 00:28:56,000
a significant dent in the
financial and the food crises.
456
00:28:57,724 --> 00:29:01,103
It's suggested by the
publication a couple of days ago
457
00:29:01,103 --> 00:29:06,103
of the authoritative annual
report on military spending
458
00:29:07,517 --> 00:29:11,034
by Cypriot and Swedish
Peace Research Institute,
459
00:29:11,034 --> 00:29:14,551
the scale of military
spending is phenomenal,
460
00:29:14,551 --> 00:29:17,931
regularly increasing,
this last year as well,
461
00:29:17,931 --> 00:29:21,172
that the US is responsible
for almost as much
462
00:29:21,172 --> 00:29:23,655
as the rest of the
world combined,
463
00:29:23,655 --> 00:29:27,517
seven times as much as
its nearest rival, China.
464
00:29:28,689 --> 00:29:30,724
No need to waste
time commenting.
465
00:29:32,517 --> 00:29:37,517
This distribution of concerns
reflects another crisis here,
466
00:29:38,689 --> 00:29:41,034
kind of a cultural
crisis; that is,
467
00:29:41,034 --> 00:29:46,034
the tendency to focus on
short-term parochial gains.
468
00:29:48,000 --> 00:29:53,000
That's a core element of our
socioeconomic institutions
469
00:29:54,448 --> 00:29:58,034
and the ideological support
system on which they rest.
470
00:29:59,103 --> 00:30:02,275
One example, now prominent,
471
00:30:02,275 --> 00:30:06,620
is the array of perverse
incentives that are devised
472
00:30:06,620 --> 00:30:10,275
for corporate managers
to enrich themselves.
473
00:30:10,275 --> 00:30:13,517
For example, what's
called the too-big-to-fail
474
00:30:13,517 --> 00:30:16,241
insurance policies
that are provided
475
00:30:16,241 --> 00:30:19,344
by the unwitting public,
476
00:30:19,344 --> 00:30:22,137
and deeper ones that
are just inherent
477
00:30:22,137 --> 00:30:23,689
in market inefficiencies.
478
00:30:24,896 --> 00:30:28,448
One such inefficiency,
and now recognized
479
00:30:28,448 --> 00:30:30,896
to be one of the roots
of the financial crisis,
480
00:30:32,034 --> 00:30:35,137
is the underpricing
of systemic risk,
481
00:30:35,137 --> 00:30:37,000
a risk that affects
the whole system.
482
00:30:38,862 --> 00:30:40,655
So, for example,
and that's general.
483
00:30:40,655 --> 00:30:45,655
Like if you and I make
a transaction, say
you sell me a car,
484
00:30:46,862 --> 00:30:49,517
we may make a good
deal for ourselves,
485
00:30:49,517 --> 00:30:52,689
but we don't price into that
transaction the cost to others,
486
00:30:53,689 --> 00:30:55,413
and there's a cost.
487
00:30:55,413 --> 00:30:58,724
Pollution, congestion,
raising the price of gas,
488
00:30:58,724 --> 00:31:02,034
all sorts of other things,
killing people in Nigeria
489
00:31:02,034 --> 00:31:04,551
because we're getting
the gas from them.
490
00:31:04,551 --> 00:31:07,310
That doesn't count, we
don't count that in.
491
00:31:08,620 --> 00:31:11,275
That's an inherent
market inefficiency,
492
00:31:11,275 --> 00:31:13,379
one of the reasons why
markets can't work.
493
00:31:14,586 --> 00:31:16,689
And when you turn to the
financial institutions,
494
00:31:17,586 --> 00:31:19,965
it can get quite serious.
495
00:31:19,965 --> 00:31:22,689
So, it means that if,
say, Goldman Sachs,
496
00:31:22,689 --> 00:31:27,689
if they're managed properly,
if they make a risky loan,
497
00:31:29,000 --> 00:31:31,586
they calculate the
potential cost to themselves
498
00:31:31,586 --> 00:31:33,103
if the loan goes bad,
499
00:31:33,103 --> 00:31:35,103
but they simply don't
calculate the impact
500
00:31:35,103 --> 00:31:37,379
on the whole financial system,
501
00:31:37,379 --> 00:31:40,620
and we now see how
severe that can be,
502
00:31:40,620 --> 00:31:42,586
not that it's anything new.
503
00:31:42,586 --> 00:31:45,310
In fact, this inherent
deficiency of markets,
504
00:31:45,310 --> 00:31:48,241
this inefficiency of markets,
is perfectly well-known.
505
00:31:49,655 --> 00:31:53,517
10 years ago, at the
height of the euphoria
506
00:31:53,517 --> 00:31:57,724
about efficient markets,
two prominent economists,
507
00:31:59,206 --> 00:32:04,206
John Eatwell and Lance Taylor,
they wrote an important book
508
00:32:05,620 --> 00:32:09,137
called Global Finance at Risk
in which they spelled out
509
00:32:09,137 --> 00:32:12,620
the consequences of these
market inefficiencies,
510
00:32:12,620 --> 00:32:17,206
which we now see, and
they outlined means
to deal with them.
511
00:32:18,344 --> 00:32:21,068
These proposals were
exactly contrary
512
00:32:21,068 --> 00:32:26,068
to the deregulatory rage that
was then being carried forward
513
00:32:27,551 --> 00:32:31,172
by the Clinton Administration
under the leadership of those
514
00:32:32,344 --> 00:32:35,413
who Obama has now called
upon to put Band-Aids
515
00:32:35,413 --> 00:32:37,862
on the disaster that
they helped create.
516
00:32:39,517 --> 00:32:41,931
Well, in substantial measure,
517
00:32:41,931 --> 00:32:45,862
the food crisis plaguing
much of the South
518
00:32:45,862 --> 00:32:50,517
and the financial crisis of
the North have common roots,
519
00:32:50,517 --> 00:32:55,517
namely the shift towards
neoliberalism since the 1970s
520
00:32:56,965 --> 00:32:59,655
that brought to an end
the post-Second World War
521
00:32:59,655 --> 00:33:02,137
Bretton Woods system
that was instituted
522
00:33:02,137 --> 00:33:06,413
by the United States and Britain
right after World War II.
523
00:33:06,413 --> 00:33:10,241
It had two architects, John
Maynard Keynes of Britain
524
00:33:10,241 --> 00:33:13,068
and Harry Dexter White
in the United States,
525
00:33:13,068 --> 00:33:16,827
and they anticipated
that its core principles,
526
00:33:18,172 --> 00:33:22,551
which included capital controls
and regulated currencies,
527
00:33:22,551 --> 00:33:25,000
they anticipated
that these principles
528
00:33:25,000 --> 00:33:29,931
would lead to relatively
balanced economic growth
529
00:33:29,931 --> 00:33:32,931
and would also free
governments to institute
530
00:33:34,206 --> 00:33:37,448
the social democratic programs,
welfare state programs
531
00:33:37,448 --> 00:33:40,931
that had enormous public
support around the world.
532
00:33:40,931 --> 00:33:42,103
And to a large extent,
533
00:33:42,103 --> 00:33:44,241
they were vindicated
on both counts.
534
00:33:44,241 --> 00:33:46,793
In fact, many economists
call the years
535
00:33:46,793 --> 00:33:51,344
that followed until the 1970s
the golden age of capitalism.
536
00:33:52,517 --> 00:33:57,241
That golden age led not
only to unprecedented
537
00:33:57,241 --> 00:34:00,551
and relatively
egalitarian growth,
538
00:34:00,551 --> 00:34:03,310
but also the introduction
of welfare state measures.
539
00:34:04,482 --> 00:34:07,310
Keynes and White were
perfectly well aware
540
00:34:07,310 --> 00:34:11,413
that free capital
movement and speculation
541
00:34:11,413 --> 00:34:12,689
inhibit these options.
542
00:34:14,310 --> 00:34:16,965
Professional
economics literature
543
00:34:16,965 --> 00:34:19,206
points out what
should be obvious,
544
00:34:19,206 --> 00:34:22,413
that the free flow
of capital creates
545
00:34:22,413 --> 00:34:25,655
what is sometimes
called a virtual senate
546
00:34:25,655 --> 00:34:28,379
of lenders and
investors who carry out
547
00:34:28,379 --> 00:34:32,896
a moment-by-moment referendum
on government policies.
548
00:34:32,896 --> 00:34:35,310
And if they find that
they're irrational,
549
00:34:35,310 --> 00:34:38,655
meaning they help people
instead of profits,
550
00:34:38,655 --> 00:34:41,827
then they vote against
them by capital flight,
551
00:34:41,827 --> 00:34:44,862
by attacks on a
country, and so on.
552
00:34:44,862 --> 00:34:49,862
So, the democratic governments
have a dual constituency:
553
00:34:51,000 --> 00:34:53,206
their own population
and the virtual senate,
554
00:34:53,206 --> 00:34:54,724
who typically prevail.
555
00:34:55,896 --> 00:34:58,517
And for the poor, that
means regular disaster.
556
00:34:59,965 --> 00:35:04,379
In fact, one of the reasons
for the radical difference
557
00:35:04,379 --> 00:35:08,310
between Latin
American and East Asia
558
00:35:09,551 --> 00:35:11,413
in the last half-century
559
00:35:11,413 --> 00:35:15,827
is that Latin America didn't
control capital flight.
560
00:35:15,827 --> 00:35:18,103
In fact, in general, the
rich in Latin America
561
00:35:18,103 --> 00:35:19,586
don't have responsibilities.
562
00:35:20,896 --> 00:35:24,689
Capital flight approximated
the crushing debt.
563
00:35:26,103 --> 00:35:30,413
In contrast, during
South Korea's remarkable
growth period,
564
00:35:30,413 --> 00:35:32,206
capital flight was
not only banned
565
00:35:32,206 --> 00:35:33,931
but could bring
the death penalty,
566
00:35:35,344 --> 00:35:39,517
one of many factors that led
to the surprising divergence.
567
00:35:39,517 --> 00:35:43,586
Latin America has
much richer resources.
568
00:35:43,586 --> 00:35:48,586
You'd expect it to be far
more advanced than East Asia,
569
00:35:49,448 --> 00:35:51,172
but it had the disadvantage
570
00:35:51,172 --> 00:35:54,931
of being under
imperialist wings.
571
00:35:56,931 --> 00:36:01,931
From the 1970s, the
golden age faded.
572
00:36:01,931 --> 00:36:05,344
When neoliberal
rules were observed,
573
00:36:05,344 --> 00:36:07,275
insofar as they've
been observed,
574
00:36:07,275 --> 00:36:09,896
economic performance
deteriorated
575
00:36:09,896 --> 00:36:11,620
and social democratic programs
576
00:36:11,620 --> 00:36:14,206
have been
substantially weakened.
577
00:36:14,206 --> 00:36:16,034
We see that right here.
578
00:36:16,034 --> 00:36:19,310
The United States partially
accepted these rules.
579
00:36:19,310 --> 00:36:21,241
And for the past 30 years,
580
00:36:21,241 --> 00:36:24,000
real wages for the
majority of the population
581
00:36:24,000 --> 00:36:25,758
have stagnated.
582
00:36:25,758 --> 00:36:30,000
Up 'til then, they
essentially tracked growth.
583
00:36:30,000 --> 00:36:33,758
Work hours have increased,
now well beyond Europe.
584
00:36:35,517 --> 00:36:39,206
Benefits, which have always
lagged, have declined.
585
00:36:39,206 --> 00:36:41,931
Social indicators, a
kind of general measure
586
00:36:41,931 --> 00:36:44,137
of the health of the society,
587
00:36:44,137 --> 00:36:49,137
they also tracked growth
until the mid-1970s,
588
00:36:50,000 --> 00:36:51,620
when they began to decline,
589
00:36:51,620 --> 00:36:55,689
reaching the 1960 level by
the end of the millennium.
590
00:36:55,689 --> 00:36:57,379
Well, there has been
economic growth,
591
00:36:57,379 --> 00:37:01,068
but it's finding its way
into very few pockets,
592
00:37:01,068 --> 00:37:04,137
increasingly into the
financial industries,
593
00:37:04,137 --> 00:37:07,310
which have grown enormously
594
00:37:07,310 --> 00:37:11,965
while productive industry
has significantly declined,
595
00:37:12,931 --> 00:37:14,655
and we're seeing it right now.
596
00:37:14,655 --> 00:37:16,448
And with the decline
of productive industry,
597
00:37:16,448 --> 00:37:20,206
of course that means a
decline in living standards;
598
00:37:20,206 --> 00:37:22,965
in fact, even
opportunities to survive
599
00:37:22,965 --> 00:37:24,827
for much of the workforce.
600
00:37:24,827 --> 00:37:28,896
The economy has also been
punctuated by bubbles,
601
00:37:28,896 --> 00:37:32,206
financial crises,
and public bailouts.
602
00:37:32,206 --> 00:37:36,931
So, the huge bailout
of Citigroup right
now is nothing new.
603
00:37:36,931 --> 00:37:39,137
Something quite similar happened
604
00:37:39,137 --> 00:37:41,896
in the early-'80s to its
predecessor, Citibank,
605
00:37:42,896 --> 00:37:44,310
thanks to the US taxpayer.
606
00:37:47,758 --> 00:37:50,034
And these results were described
607
00:37:50,034 --> 00:37:52,000
all through this
period and explained
608
00:37:52,000 --> 00:37:57,000
by a few really outstanding
international economists;
609
00:37:57,000 --> 00:37:58,965
David Felix is one.
610
00:37:58,965 --> 00:38:02,206
But the mythology
about efficient markets
611
00:38:02,206 --> 00:38:05,103
and rational choice prevail,
612
00:38:05,103 --> 00:38:07,172
and that's not at
all surprising.
613
00:38:07,172 --> 00:38:10,482
These myths were
highly beneficial
614
00:38:10,482 --> 00:38:15,103
to very narrow sectors
of privilege and power,
615
00:38:16,482 --> 00:38:19,827
what Adam Smith called the
principle architects of policy.
616
00:38:19,827 --> 00:38:22,896
That's another very
severe institutional
617
00:38:22,896 --> 00:38:26,206
and cultural crisis
which persists.
618
00:38:27,586 --> 00:38:29,793
Actually, the phrase
"golden age of capitalism"
619
00:38:29,793 --> 00:38:31,758
is a little misleading.
620
00:38:31,758 --> 00:38:36,068
It might more accurately
be called state capitalism.
621
00:38:36,068 --> 00:38:40,655
It's worth bearing in mind
that the dynamic state sector
622
00:38:40,655 --> 00:38:43,793
was and remains a primary factor
623
00:38:43,793 --> 00:38:48,793
in development and innovation
through a variety of measures:
624
00:38:49,655 --> 00:38:51,310
research and development,
625
00:38:51,310 --> 00:38:53,379
procurement,
government procurement,
626
00:38:53,379 --> 00:38:57,413
public subsidy, regular
bailouts, and other means.
627
00:38:57,413 --> 00:39:00,206
It's particularly true
in the United States.
628
00:39:00,206 --> 00:39:03,172
It was done here under
a Pentagon cover.
629
00:39:03,172 --> 00:39:07,965
As long as the cutting edge of
high-tech industry advanced,
630
00:39:07,965 --> 00:39:10,206
economy was electronics-based.
631
00:39:10,206 --> 00:39:13,137
For that, the Pentagon
served as a good cover.
632
00:39:13,137 --> 00:39:16,241
In recent years, if you
look at government spending,
633
00:39:16,241 --> 00:39:17,724
it's shifting more towards
634
00:39:17,724 --> 00:39:22,724
the health-oriented
institutions of the government.
635
00:39:23,586 --> 00:39:25,068
That's a reflection of the fact
636
00:39:25,068 --> 00:39:26,896
that the cutting
edge of the economy
637
00:39:27,827 --> 00:39:30,551
is becoming more biology-based.
638
00:39:30,551 --> 00:39:34,068
That includes computers,
the internet, satellites,
639
00:39:35,241 --> 00:39:39,206
most of the rest of
the IT revolution
640
00:39:39,206 --> 00:39:43,827
that finally exploded in the
late-'90s in a tech bubble,
641
00:39:43,827 --> 00:39:45,275
but also much else;
642
00:39:45,275 --> 00:39:49,000
civilian aircraft,
advanced machine tools,
643
00:39:49,000 --> 00:39:51,965
pharmaceuticals,
biotechnology, and a lot more.
644
00:39:53,310 --> 00:39:57,517
The crucial role of the
state in economic development
645
00:39:57,517 --> 00:40:01,000
should be kept in mind
when we read, these days,
646
00:40:01,000 --> 00:40:03,482
dire warnings about
government intervention
647
00:40:03,482 --> 00:40:05,103
in the financial system,
648
00:40:05,103 --> 00:40:10,103
after private management has
once again driven it to ruins,
649
00:40:11,172 --> 00:40:13,724
this time an unusually
severe crisis
650
00:40:13,724 --> 00:40:16,517
and one that harms the
rich and not just the poor,
651
00:40:16,517 --> 00:40:18,551
so it merits special concern.
652
00:40:19,655 --> 00:40:22,137
It's also worth recalling
653
00:40:22,137 --> 00:40:23,827
that large-scale
state intervention
654
00:40:23,827 --> 00:40:26,000
in the economy is nothing new.
655
00:40:26,000 --> 00:40:29,482
On the contrary, it's
always been a central factor
656
00:40:29,482 --> 00:40:31,689
in economic development.
657
00:40:31,689 --> 00:40:35,275
It's a matter, I
wish I had time to,
658
00:40:35,275 --> 00:40:36,896
there's no time
to review it here,
659
00:40:36,896 --> 00:40:39,793
but the history, which I'll
skip, is quite instructive.
660
00:40:41,000 --> 00:40:45,965
These state-guided modes
of economic development
661
00:40:47,827 --> 00:40:51,275
require considerable
deceit in a society
662
00:40:51,275 --> 00:40:54,310
where the public can't
be controlled by force,
663
00:40:54,310 --> 00:40:57,896
so people can't be told
that the advanced economy
664
00:40:57,896 --> 00:41:00,137
relies heavily on the principle
665
00:41:00,137 --> 00:41:04,448
that the population pays the
cost and takes the risks,
666
00:41:04,448 --> 00:41:08,586
and that the profit is
eventually privatized,
667
00:41:10,000 --> 00:41:13,827
and eventual can be a long
time, sometimes decades,
668
00:41:13,827 --> 00:41:17,517
as in the case of computers
and the internet, for example.
669
00:41:17,517 --> 00:41:21,344
After World War II,
Americans were told
670
00:41:21,344 --> 00:41:25,586
that their taxes were
going to support defense
671
00:41:25,586 --> 00:41:28,620
against monsters
about to overcome us.
672
00:41:28,620 --> 00:41:31,068
That's why it was
under Pentagon cover.
673
00:41:31,068 --> 00:41:34,413
So, for example,
in the mid-'60s,
674
00:41:34,413 --> 00:41:39,413
when LBJ warned that there
are only 150 million of us
675
00:41:40,551 --> 00:41:42,586
and there are three
billion of them
676
00:41:42,586 --> 00:41:44,103
and if might makes right,
677
00:41:44,103 --> 00:41:47,206
they're gonna sweep over
us and take what we have,
678
00:41:47,206 --> 00:41:49,137
so we have to stop
'em in Vietnam.
679
00:41:50,517 --> 00:41:52,931
And if that sounds familiar,
it's because it is.
680
00:41:55,413 --> 00:41:59,758
For those who are concerned
to understand the realities
681
00:41:59,758 --> 00:42:04,034
of the whole Cold War system
of controlling the public,
682
00:42:04,034 --> 00:42:06,862
there's a very obvious
moment to inspect carefully.
683
00:42:07,827 --> 00:42:10,724
That's just 20 years ago,
684
00:42:10,724 --> 00:42:13,275
at the time of the
fall of the Berlin Wall
685
00:42:13,275 --> 00:42:15,206
and what followed later.
686
00:42:15,206 --> 00:42:19,827
Now, the celebration of the
20th anniversary this November,
687
00:42:19,827 --> 00:42:23,689
it's already begun
with ample coverage,
688
00:42:23,689 --> 00:42:26,379
and it's surely gonna increase
as the date approaches.
689
00:42:27,862 --> 00:42:32,448
But the very revealing policy
implications of what followed
690
00:42:33,586 --> 00:42:36,448
have been ignored,
as in the past
691
00:42:36,448 --> 00:42:41,275
and probably this
coming November, except
on Democracy now.
692
00:42:41,275 --> 00:42:43,275
[audience laughing]
693
00:42:43,275 --> 00:42:46,000
What happened after
the Berlin Wall fell?
694
00:42:46,000 --> 00:42:49,862
Well, the Bush I Administration
reacted immediately.
695
00:42:49,862 --> 00:42:53,517
It issued a new national
security strategy
696
00:42:53,517 --> 00:42:57,482
and a budget proposal
which laid out
697
00:42:57,482 --> 00:43:00,275
what our new course will
be after the collapse
698
00:43:00,275 --> 00:43:03,896
of what Kennedy
called the monolithic
699
00:43:03,896 --> 00:43:07,137
and ruthless conspiracy
to conquer the world,
700
00:43:07,137 --> 00:43:11,034
Reagan's Evil Empire, was gone.
701
00:43:11,034 --> 00:43:12,310
And now that it was gone,
702
00:43:12,310 --> 00:43:16,068
the whole framework of
propaganda collapsed.
703
00:43:16,068 --> 00:43:18,137
So, what was the
response of the planners
704
00:43:18,137 --> 00:43:19,931
in the Bush Administration?
705
00:43:19,931 --> 00:43:21,379
Very straightforward.
706
00:43:21,379 --> 00:43:25,724
In brief, everything will
go exactly as before,
707
00:43:25,724 --> 00:43:27,586
but with new pretexts.
708
00:43:27,586 --> 00:43:30,758
So, we still need same
huge military system,
709
00:43:31,689 --> 00:43:32,931
but for a new reason,
710
00:43:34,344 --> 00:43:37,793
literally because of the
technological sophistication
711
00:43:37,793 --> 00:43:40,034
of Third World powers.
712
00:43:40,034 --> 00:43:41,517
And nobody laughed.
713
00:43:41,517 --> 00:43:44,241
[audience laughing]
714
00:43:44,241 --> 00:43:45,793
We have to maintain
what they called
715
00:43:45,793 --> 00:43:48,620
the defense industrial base.
716
00:43:48,620 --> 00:43:51,620
It's a standard euphemism
for high-tech industry,
717
00:43:53,000 --> 00:43:55,482
the system whereby the
public pays the cost
718
00:43:55,482 --> 00:44:00,310
and takes the risks
and high-tech industry
gets the profits.
719
00:44:01,655 --> 00:44:04,000
We also have to, they said,
720
00:44:04,000 --> 00:44:06,724
"Have to maintain
intervention forces,
721
00:44:06,724 --> 00:44:09,275
"directed mostly at
the Middle East."
722
00:44:09,275 --> 00:44:11,931
And then comes this
interesting phrase.
723
00:44:11,931 --> 00:44:13,517
"Directed at the Middle East,
724
00:44:13,517 --> 00:44:15,275
"where the threats
to our interests
725
00:44:15,275 --> 00:44:17,689
"that required
military intervention
726
00:44:17,689 --> 00:44:19,965
"could not be laid at
the Kremlin's door."
727
00:44:21,310 --> 00:44:24,068
In other words, "Sorry,
folks, we've been lying to you
728
00:44:24,068 --> 00:44:27,517
"for 50 years, but now
the clouds have lifted,
729
00:44:27,517 --> 00:44:31,724
"so you can see if you
choose to," and few chose to.
730
00:44:32,896 --> 00:44:35,689
Actually, the fate of
NATO is very instructive
731
00:44:35,689 --> 00:44:37,206
and highly pertinent right now.
732
00:44:38,724 --> 00:44:43,206
Prior to Gorbachev,
NATO's announced purpose
733
00:44:43,206 --> 00:44:46,931
was to deter a Russian
invasion of Europe.
734
00:44:48,103 --> 00:44:51,586
That was often a little
hard to take seriously;
735
00:44:51,586 --> 00:44:54,206
for example, in 1945.
736
00:44:55,551 --> 00:45:00,103
In May 1945, Winston
Churchill ordered war plans
737
00:45:01,551 --> 00:45:05,413
to be drawn up for what they
called Operation: Unthinkable.
738
00:45:05,413 --> 00:45:08,586
It was aimed at, "The
elimination of Russia."
739
00:45:10,000 --> 00:45:12,551
The plans, which were
declassified 10 years ago,
740
00:45:13,758 --> 00:45:16,068
I'll quote it, called
for a surprise attack
741
00:45:16,068 --> 00:45:19,310
by hundreds of thousands of
British and American troops,
742
00:45:19,310 --> 00:45:23,000
joined by 100,000
rearmed German soldiers,
743
00:45:23,000 --> 00:45:27,068
while the RAF, British
air force, would
attack Soviet cities
744
00:45:27,068 --> 00:45:29,068
from bases in Northern Europe.
745
00:45:29,068 --> 00:45:31,827
And pretty soon, nuclear
weapons were added to the mix.
746
00:45:33,862 --> 00:45:36,586
All of this was
declassified 10 years ago.
747
00:45:38,241 --> 00:45:42,241
Well, the official stand
also wasn't very easy to take
748
00:45:44,000 --> 00:45:49,000
about 10 years later, when
Khrushchev took over in Russia
749
00:45:50,482 --> 00:45:54,517
and he very soon proposed a
very sharp mutual reduction
750
00:45:54,517 --> 00:45:58,034
in offensive military weaponry.
751
00:45:58,034 --> 00:46:03,034
He understood very well that
the much weaker Soviet economy
752
00:46:04,206 --> 00:46:05,689
couldn't possibly
sustain an arms race
753
00:46:05,689 --> 00:46:09,517
with the United States
and still hope to develop.
754
00:46:09,517 --> 00:46:13,172
Well, when the US dismissed
the offer, as it did,
755
00:46:13,172 --> 00:46:16,034
he carried out the
reduction unilaterally.
756
00:46:16,034 --> 00:46:18,241
And Kennedy did react to that.
757
00:46:18,241 --> 00:46:21,724
He reacted with a very sharp
increase in military spending,
758
00:46:23,103 --> 00:46:26,379
which the Russian military
later tried to match.
759
00:46:26,379 --> 00:46:31,000
That's tanking the economy,
as Khrushchev had anticipated.
760
00:46:31,000 --> 00:46:32,482
Actually, that was
the crucial moment
761
00:46:32,482 --> 00:46:37,482
in the Soviet collapse; its
economy stagnated since then.
762
00:46:38,896 --> 00:46:42,344
Well, whatever one thinks of
the defensive pretext for NATO,
763
00:46:42,344 --> 00:46:44,000
at least it had
some credibility.
764
00:46:45,172 --> 00:46:47,965
But what happens when
the Soviet Union is gone
765
00:46:47,965 --> 00:46:50,413
and the pretext disappears?
766
00:46:50,413 --> 00:46:52,413
Well, it got more extreme.
767
00:46:52,413 --> 00:46:54,965
Gorbachev made an
astonishing concession
768
00:46:56,103 --> 00:47:00,206
and he permitted
a unified Germany
769
00:47:00,206 --> 00:47:02,586
to join a hostile
military alliance
770
00:47:02,586 --> 00:47:04,137
run by the global superpower.
771
00:47:05,344 --> 00:47:08,068
That is astonishing in
the light of history;
772
00:47:08,068 --> 00:47:12,000
Germany alone had
practically destroyed Russia
773
00:47:12,000 --> 00:47:13,758
twice in the century.
774
00:47:13,758 --> 00:47:16,620
Now, there was a quid pro quo.
775
00:47:16,620 --> 00:47:19,068
This is Bush I and James Baker.
776
00:47:20,655 --> 00:47:23,586
It had been thought, up
until a couple of months ago,
777
00:47:23,586 --> 00:47:28,034
that Bush and Baker
promised not to expand NATO
778
00:47:28,034 --> 00:47:31,931
to the Eastern European
former Soviet satellites.
779
00:47:31,931 --> 00:47:35,413
But the first careful study
of the original documents
780
00:47:35,413 --> 00:47:39,931
just came out by Mark
Kramer, Cold War historian.
781
00:47:39,931 --> 00:47:44,931
He believes that he's refuting
charges of US duplicity.
782
00:47:46,379 --> 00:47:48,413
But in fact what he shows is
that it's much more cynical
783
00:47:48,413 --> 00:47:50,241
than what had been assumed.
784
00:47:50,241 --> 00:47:53,896
It turns out that Bush and
Baker promised Gorbachev
785
00:47:53,896 --> 00:47:57,206
that NATO wouldn't even
fully extend to East Germany.
786
00:47:58,620 --> 00:48:02,000
Quote them, they told
Gorbachev no NATO forces
787
00:48:02,000 --> 00:48:04,896
would ever be deployed
on the territory
788
00:48:04,896 --> 00:48:09,137
of the former German
GDR or East Germany.
789
00:48:09,137 --> 00:48:13,551
NATO's jurisdiction or forces
would not move eastward.
790
00:48:13,551 --> 00:48:16,034
They also assured Gorbachev
791
00:48:16,034 --> 00:48:18,310
that NATO would be
transforming itself
792
00:48:18,310 --> 00:48:20,413
into a more political
organization.
793
00:48:21,620 --> 00:48:24,793
Well, there's no need to
comment on that promise,
794
00:48:24,793 --> 00:48:27,931
but what follows
tells us a lot more
795
00:48:27,931 --> 00:48:29,793
about the Cold War
and its aftermath.
796
00:48:31,103 --> 00:48:33,413
Right after that,
Clinton came into office.
797
00:48:33,413 --> 00:48:34,862
And one of the
first things he did
798
00:48:34,862 --> 00:48:37,310
was to begin the expansion
of NATO to the east,
799
00:48:38,482 --> 00:48:41,034
in radical violation
of the commitment.
800
00:48:42,103 --> 00:48:43,965
The process accelerated
801
00:48:43,965 --> 00:48:47,310
with Bush's general
aggressive militarism.
802
00:48:50,724 --> 00:48:53,344
These are severe security
threat to Russia.
803
00:48:54,448 --> 00:48:56,724
It naturally reacted
by developing
804
00:48:56,724 --> 00:48:59,689
more offensive
military capacity.
805
00:48:59,689 --> 00:49:02,758
All of this is a serious
threat to human survival.
806
00:49:05,137 --> 00:49:08,758
Obama's national security
advisor, James Jones,
807
00:49:08,758 --> 00:49:12,344
he has a still more
expansive conception.
808
00:49:12,344 --> 00:49:14,620
Now, he calls for expanding NATO
809
00:49:14,620 --> 00:49:17,448
further to the
east and the south,
810
00:49:17,448 --> 00:49:22,448
becoming in effect a US-run
global intervention force,
811
00:49:23,310 --> 00:49:25,413
as it is today in Afghanistan.
812
00:49:26,275 --> 00:49:28,551
The Secretary General of NATO,
813
00:49:29,724 --> 00:49:33,586
Dutch officer de Hoop Scheffer,
814
00:49:33,586 --> 00:49:37,034
he informed a NATO
meeting that NATO troops
815
00:49:37,034 --> 00:49:39,758
have to guard pipelines
that transport oil
816
00:49:39,758 --> 00:49:42,931
and gas that's
directed for the West.
817
00:49:42,931 --> 00:49:45,931
And more generally, NATO
has to protect sea routes
818
00:49:45,931 --> 00:49:49,482
used by tankers and other
crucial infrastructure
819
00:49:49,482 --> 00:49:52,275
of the global energy system.
820
00:49:52,275 --> 00:49:54,448
All of that just
opens up a new phase
821
00:49:54,448 --> 00:49:57,482
of Western imperial domination.
822
00:49:57,482 --> 00:49:59,655
Actually, the polite
term for it is
823
00:49:59,655 --> 00:50:01,655
"bringing stability and peace."
824
00:50:02,793 --> 00:50:04,172
That's what's happening now.
825
00:50:05,241 --> 00:50:08,758
In AfPak, Afghanistan
and Pakistan,
826
00:50:08,758 --> 00:50:10,724
as the region's now called,
827
00:50:10,724 --> 00:50:15,344
Obama is building
enormous new embassies
828
00:50:15,344 --> 00:50:17,655
and other facilities
on the model
829
00:50:17,655 --> 00:50:21,310
of the city within
a city in Baghdad.
830
00:50:22,689 --> 00:50:25,620
These are like no embassies
anywhere in the world
831
00:50:27,482 --> 00:50:30,862
and they are signs
of an intention
832
00:50:30,862 --> 00:50:32,379
to be there for a long time.
833
00:50:33,793 --> 00:50:36,827
Right now in Iraq, something
interesting's happening.
834
00:50:36,827 --> 00:50:39,862
Obama's pressing
the Iraqi government
835
00:50:39,862 --> 00:50:42,724
not to permit the referendum
836
00:50:42,724 --> 00:50:46,482
that's required by the
status of forces agreement.
837
00:50:46,482 --> 00:50:48,862
That's an agreement that
was forced down the throats
838
00:50:48,862 --> 00:50:51,517
of the Bush Administration,
839
00:50:51,517 --> 00:50:55,379
which had to formally
renounce its primary war aims
840
00:50:55,379 --> 00:50:59,689
in the face of massive
Iraqi resistance.
841
00:51:02,275 --> 00:51:06,310
Washington's current
objection to the referendum
842
00:51:06,310 --> 00:51:09,000
was explained two days ago
843
00:51:09,000 --> 00:51:11,827
by New York Times
correspondent Alissa Rubin.
844
00:51:13,206 --> 00:51:17,517
"Obama fears that the Iraqi
population might reject
845
00:51:17,517 --> 00:51:22,517
"the provision that delays
US troop withdrawal to 2012.
846
00:51:24,551 --> 00:51:28,206
"They might insist on immediate
departure of US forces."
847
00:51:30,206 --> 00:51:31,862
An Iraqi analyst in London--
848
00:51:31,862 --> 00:51:35,000
[audience applauding]
849
00:51:36,034 --> 00:51:38,793
The head of the Iraqi Foundation
850
00:51:38,793 --> 00:51:40,793
for Democracy and
Development in London
851
00:51:40,793 --> 00:51:42,413
is quite pro-Western.
852
00:51:42,413 --> 00:51:46,137
He explained, this is an
election year for Iraq.
853
00:51:46,137 --> 00:51:49,793
No one wants to appear that
he's appeasing the Americans.
854
00:51:49,793 --> 00:51:53,310
Anti-Americanism is
popular now in Iraq,
855
00:51:53,310 --> 00:51:56,275
as indeed it's been
throughout in the facts
856
00:51:56,275 --> 00:51:58,586
that are familiar to anyone
857
00:51:58,586 --> 00:52:01,965
who's read the
Western-run polls,
858
00:52:01,965 --> 00:52:04,103
including Pentagon-run polls.
859
00:52:04,103 --> 00:52:09,103
Well, the current US
efforts to prevent
860
00:52:10,448 --> 00:52:14,724
the legally-required referendum
are extremely revealing.
861
00:52:18,103 --> 00:52:20,517
Sometimes they're called
democracy promotion.
862
00:52:21,689 --> 00:52:24,724
Well, while Obama's
signaling very clearly
863
00:52:24,724 --> 00:52:27,620
his intention to
establish a firm
864
00:52:27,620 --> 00:52:30,689
and large-scale
presence in the region,
865
00:52:30,689 --> 00:52:35,620
he's also, as you know, sharply
escalating the AfPak war,
866
00:52:35,620 --> 00:52:37,862
following Petraeus's strategy
867
00:52:37,862 --> 00:52:41,034
to drive the Taliban
into Pakistan,
868
00:52:41,034 --> 00:52:43,103
with potential awful results
869
00:52:43,103 --> 00:52:47,482
for this extremely dangerous
and unstable state,
870
00:52:47,482 --> 00:52:50,724
which is facing insurrections
throughout its territory.
871
00:52:50,724 --> 00:52:54,000
These are the most extreme
in the tribal areas,
872
00:52:54,000 --> 00:52:58,034
which cross the AfPak border.
873
00:52:58,034 --> 00:53:00,275
It's an artificial line imposed
874
00:53:00,275 --> 00:53:04,827
by the British called
the Durand Line
875
00:53:04,827 --> 00:53:07,172
and the same people live
on both sides of it,
876
00:53:07,172 --> 00:53:11,896
Pashtun tribes, and
they've never accepted it.
877
00:53:11,896 --> 00:53:14,896
In fact, the Afghanistan
government never
accepted it either
878
00:53:14,896 --> 00:53:16,379
as long as it was independent.
879
00:53:17,827 --> 00:53:19,896
Well, that's where most of
the fighting's going on.
880
00:53:21,206 --> 00:53:23,896
One of the leading
specialists on the region,
881
00:53:23,896 --> 00:53:26,965
Selig Harrison,
he recently wrote
882
00:53:26,965 --> 00:53:31,000
that the outcome of
Washington's current policies,
883
00:53:31,000 --> 00:53:33,758
Obama's policies, might
well be what he calls
884
00:53:33,758 --> 00:53:35,724
an Islamic Pashtunistan,
885
00:53:37,034 --> 00:53:42,034
Pashtun-based separate
kind of quasi-state.
886
00:53:43,103 --> 00:53:45,413
The Pakistani
ambassador had warned
887
00:53:45,413 --> 00:53:49,310
that if the Taliban and
Pashtun nationalism emerge,
888
00:53:49,310 --> 00:53:51,758
we've had it, and we're
on the verge of that.
889
00:53:53,000 --> 00:53:56,827
The prospects become
still more ominous
890
00:53:56,827 --> 00:53:59,137
with the escalation
of drone attacks
891
00:53:59,137 --> 00:54:02,896
that embitter the population
with their huge civilian toll
892
00:54:02,896 --> 00:54:06,103
and, more recently, just a
couple of days ago in fact,
893
00:54:06,103 --> 00:54:09,172
with the unprecedented authority
894
00:54:09,172 --> 00:54:13,103
that has just been granted to
General Stanley McChrystal.
895
00:54:13,103 --> 00:54:14,620
He's taking charge.
896
00:54:14,620 --> 00:54:17,862
He's a kind of a wild-eyed
special forces assassin,
897
00:54:17,862 --> 00:54:21,034
has been put in charge of
heading the operations.
898
00:54:21,034 --> 00:54:24,862
Petraeus's own counterinsurgency
advisor in Iraq,
899
00:54:24,862 --> 00:54:29,241
General David Kilcullen,
colonel, I think,
900
00:54:29,241 --> 00:54:33,379
he describes the
Obama-Petraeus-McChrystal
policies
901
00:54:35,344 --> 00:54:37,793
as a fundamental strategic error
902
00:54:37,793 --> 00:54:40,931
which may lead to the
collapse of Pakistan.
903
00:54:40,931 --> 00:54:43,103
He says it's a calamity
that would dwarf
904
00:54:43,103 --> 00:54:46,379
all other current issues,
given the country's size,
905
00:54:46,379 --> 00:54:49,896
strategic location,
and nuclear stockpile.
906
00:54:51,241 --> 00:54:54,724
It's also not too encouraging
that Pakistan and India
907
00:54:54,724 --> 00:54:57,862
are now rapidly expanding
their nuclear arsenals.
908
00:54:58,965 --> 00:55:01,310
Pakistan's nuclear
arsenals were developed
909
00:55:01,310 --> 00:55:04,103
with Reagan's crucial aid
910
00:55:04,103 --> 00:55:06,758
and India's nuclear
weapons program
911
00:55:06,758 --> 00:55:09,034
just got a major shot in the arm
912
00:55:09,034 --> 00:55:12,758
with the recent US-India
nuclear agreement.
913
00:55:12,758 --> 00:55:16,344
It's also a sharp blow to
the Non-Proliferation Treaty.
914
00:55:16,344 --> 00:55:18,724
The two counties
have twice come close
915
00:55:18,724 --> 00:55:23,344
to nuclear war over Kashmir
and they're also engaged
916
00:55:23,344 --> 00:55:25,689
in a kind of proxy
war in Afghanistan.
917
00:55:26,862 --> 00:55:30,000
These developments pose
a very serious threat
918
00:55:30,000 --> 00:55:32,896
to world peace, even
to human survival.
919
00:55:34,275 --> 00:55:37,000
Well, a lot to say about this
crisis, but no time here.
920
00:55:38,068 --> 00:55:42,103
Coming back home,
whether the deceit here
921
00:55:42,103 --> 00:55:46,413
about the monstrous
enemy was sincere or not,
922
00:55:46,413 --> 00:55:48,620
Johnson's case might
well have been sincere,
923
00:55:50,206 --> 00:55:52,689
suppose that say 50 years ago,
924
00:55:52,689 --> 00:55:55,000
Americans had been
given a choice
925
00:55:55,000 --> 00:55:57,517
of directing their tax money
926
00:55:57,517 --> 00:56:00,724
to development of
information technology
927
00:56:00,724 --> 00:56:04,344
so that their grandchildren
could have iPods
928
00:56:04,344 --> 00:56:08,862
and the internet or else
putting the same funds
929
00:56:08,862 --> 00:56:11,137
into developing a livable
930
00:56:11,137 --> 00:56:14,413
and sustainable
socioeconomic order.
931
00:56:14,413 --> 00:56:17,482
Well, they might very well
have made the latter choice.
932
00:56:17,482 --> 00:56:20,896
But they had no choice,
and that's standard.
933
00:56:20,896 --> 00:56:24,448
There's a striking gap
between public opinion
934
00:56:24,448 --> 00:56:27,931
and public policy on a
host of major issues,
935
00:56:27,931 --> 00:56:31,931
domestic and foreign, and,
at least in my judgment,
936
00:56:31,931 --> 00:56:34,448
public opinion is
often a lot more sane.
937
00:56:35,862 --> 00:56:39,931
It also tends to be fairly
consistent over time,
938
00:56:39,931 --> 00:56:41,793
which is pretty astonishing,
939
00:56:41,793 --> 00:56:44,068
because public concerns
and aspirations,
940
00:56:44,068 --> 00:56:48,551
if they're even mentioned, are
marginalized and ridiculed.
941
00:56:48,551 --> 00:56:50,689
It's one very
significant feature
942
00:56:50,689 --> 00:56:54,586
of the yawning, a
democratic deficit,
943
00:56:54,586 --> 00:56:56,310
as we call it in
other countries.
944
00:56:56,310 --> 00:57:00,448
That's the failure of formal
democratic institutions
945
00:57:00,448 --> 00:57:04,344
to function properly, and
that's no trivial matter.
946
00:57:05,896 --> 00:57:09,344
Arundhati Roy has a
book soon to come out
947
00:57:09,344 --> 00:57:11,862
in which she asks
whether the evolution
948
00:57:11,862 --> 00:57:15,620
of former democracy in
India and the United States,
949
00:57:15,620 --> 00:57:17,965
in fact, not only
there, her words,
950
00:57:17,965 --> 00:57:21,482
"Might turn out to be the
endgame of the human race,"
951
00:57:21,482 --> 00:57:23,068
and that's not an idle question.
952
00:57:24,482 --> 00:57:27,931
It should be recalled
that the American republic
953
00:57:27,931 --> 00:57:29,241
was founded on the principle
954
00:57:29,241 --> 00:57:32,724
that there should be
a democratic deficit.
955
00:57:32,724 --> 00:57:37,068
James Madison, the main framer
of the constitutional order,
956
00:57:37,068 --> 00:57:40,310
his view was that power
should be in the hands
957
00:57:40,310 --> 00:57:42,172
of the wealth of the nation,
958
00:57:42,172 --> 00:57:44,620
the more responsible set of men,
959
00:57:44,620 --> 00:57:47,896
who have sympathy for property
owners and their rights.
960
00:57:49,172 --> 00:57:52,586
And Madison sought to construct
a system of government
961
00:57:52,586 --> 00:57:54,068
that would, in his words,
962
00:57:54,068 --> 00:57:57,413
protect the minority of the
opulent from the majority.
963
00:57:58,758 --> 00:58:02,551
That's why the constitutional
system that he framed
964
00:58:02,551 --> 00:58:06,068
did not have coequal branches.
965
00:58:07,482 --> 00:58:09,896
The executive was supposed
to be an administrator
966
00:58:09,896 --> 00:58:13,586
and the legislature was
supposed to be dominant,
967
00:58:13,586 --> 00:58:17,620
but not the House
of Representatives,
rather the Senate,
968
00:58:17,620 --> 00:58:19,344
where power was vested
969
00:58:19,344 --> 00:58:22,206
and protected from the
public in many ways.
970
00:58:22,206 --> 00:58:26,758
That's where the wealth of the
nation would be concentrated.
971
00:58:26,758 --> 00:58:28,827
This is not overlooked
by historians.
972
00:58:29,689 --> 00:58:30,931
Gordon Wood, for example,
973
00:58:30,931 --> 00:58:33,931
summarizes the thoughts
of the founders,
974
00:58:33,931 --> 00:58:36,896
saying that the Constitution
was intrinsically
975
00:58:36,896 --> 00:58:40,310
an aristocratic document
designed to check
976
00:58:40,310 --> 00:58:43,103
the Democrat tendencies
of the period,
977
00:58:43,103 --> 00:58:46,206
delivering power to a
better sort of people
978
00:58:46,206 --> 00:58:49,724
and excluding those who
were not rich, well-born,
979
00:58:49,724 --> 00:58:52,517
or prominent from
exercising political power.
980
00:58:53,413 --> 00:58:54,931
All through American history,
981
00:58:54,931 --> 00:58:56,551
there's been a constant struggle
982
00:58:56,551 --> 00:59:00,068
over this constrained
version of democracy,
983
00:59:00,068 --> 00:59:03,862
and popular struggles have
won a great many rights.
984
00:59:03,862 --> 00:59:07,241
Nevertheless, concentrated
power and privilege
985
00:59:07,241 --> 00:59:09,344
clings to the
Madisonian conception.
986
00:59:10,482 --> 00:59:13,310
It changes form as
circumstances change.
987
00:59:14,965 --> 00:59:18,034
By World War II, there
was a significant change.
988
00:59:18,034 --> 00:59:21,310
Business leaders and
elite intellectuals
989
00:59:21,310 --> 00:59:24,655
recognized that the public
had won enough rights
990
00:59:24,655 --> 00:59:26,758
so that they can't be
controlled by force,
991
00:59:27,965 --> 00:59:30,448
so it would be necessary
to do something else,
992
00:59:30,448 --> 00:59:35,448
namely to turn to control
of attitudes and opinions.
993
00:59:36,896 --> 00:59:39,413
These were the days when the
huge public relations industry
994
00:59:39,413 --> 00:59:42,448
emerged in the freest
countries in the world,
995
00:59:42,448 --> 00:59:44,310
Britain and the United States,
996
00:59:44,310 --> 00:59:46,862
where the problem
was most severe.
997
00:59:48,413 --> 00:59:50,689
The public relations
industry was devoted
998
00:59:50,689 --> 00:59:54,275
to what Walter Lippmann
approvingly called
999
00:59:54,275 --> 00:59:57,379
a new art in the
practice of democracy,
1000
00:59:57,379 --> 00:59:59,413
the manufacture of consent.
1001
00:59:59,413 --> 01:00:01,413
It's called the
engineering of consent
1002
01:00:01,413 --> 01:00:04,620
in the phrase of his
contemporary, Edward Bernays,
1003
01:00:04,620 --> 01:00:07,000
one of the founders
of the PR industry.
1004
01:00:08,137 --> 01:00:10,827
Both Lippmann and
Bernays had taken part
1005
01:00:10,827 --> 01:00:14,310
in Woodrow Wilson's
state propaganda agency,
1006
01:00:15,896 --> 01:00:18,586
which, Committee on
Public Information,
1007
01:00:18,586 --> 01:00:20,931
that was its Orwellian term,
1008
01:00:22,310 --> 01:00:26,068
it was created to try to
drive a pacifist population
1009
01:00:27,517 --> 01:00:32,172
to jingoist fanaticism and
hatred of all things German.
1010
01:00:33,310 --> 01:00:35,206
And it succeeded,
brilliantly, in fact.
1011
01:00:35,206 --> 01:00:40,206
And it was hoped that the
same techniques could ensure
1012
01:00:41,793 --> 01:00:43,724
that what are called
the intelligent
minorities would rule
1013
01:00:45,586 --> 01:00:47,241
and that the general public,
1014
01:00:47,241 --> 01:00:51,068
who Lippmann called ignorant
and meddlesome outsiders,
1015
01:00:51,068 --> 01:00:56,068
would serve their function as
spectators, not participants.
1016
01:00:57,275 --> 01:00:59,793
These are all very
highly respected
1017
01:00:59,793 --> 01:01:03,034
progressive essays on democracy
1018
01:01:03,034 --> 01:01:06,448
and by a man who was the
leading public intellectual
1019
01:01:06,448 --> 01:01:07,758
of the 20th century
1020
01:01:07,758 --> 01:01:10,655
and was a
Wilson-Roosevelt-Kennedy
progressive,
1021
01:01:10,655 --> 01:01:11,620
as Bernays was.
1022
01:01:13,000 --> 01:01:17,310
And they capture the thinking
of progressive opinion.
1023
01:01:17,310 --> 01:01:21,655
So, President Wilson, he held
that an elite of gentlemen
1024
01:01:21,655 --> 01:01:24,862
with elevated ideals
must be empowered
1025
01:01:24,862 --> 01:01:27,896
to preserve stability
and righteousness,
1026
01:01:27,896 --> 01:01:31,068
essentially the perspective
of the founding fathers.
1027
01:01:32,000 --> 01:01:33,551
In more recent years,
1028
01:01:33,551 --> 01:01:38,344
the gentlemen are transmuted
into the technocratic elite
1029
01:01:38,344 --> 01:01:42,344
and the action
intellectuals of Camelot,
1030
01:01:42,344 --> 01:01:46,620
Straussian, neocons,
other configurations.
1031
01:01:46,620 --> 01:01:48,103
But throughout,
1032
01:01:48,103 --> 01:01:49,827
one or another variant
of the doctrine prevails.
1033
01:01:50,758 --> 01:01:52,758
The quote from Samuel Huntington
1034
01:01:52,758 --> 01:01:54,172
that you heard is an example.
1035
01:01:56,000 --> 01:01:58,206
And on a more hopeful note,
1036
01:01:58,206 --> 01:02:01,724
a popular struggle
continues to clip its wings,
1037
01:02:01,724 --> 01:02:06,689
and quite impressively in
the wake of 1960s activism,
1038
01:02:06,689 --> 01:02:08,413
which had quite a
substantial effect
1039
01:02:08,413 --> 01:02:12,620
on civilizing the society
and raised the prospects
1040
01:02:12,620 --> 01:02:16,758
for further progress
to a much higher plane.
1041
01:02:16,758 --> 01:02:19,758
It's one of the reasons why
it's called the time of troubles
1042
01:02:19,758 --> 01:02:23,862
and bitterly denounced: too
much of a civilizing effect.
1043
01:02:25,034 --> 01:02:27,517
Well, what the West
sees as the crisis,
1044
01:02:27,517 --> 01:02:29,586
namely the financial crisis,
1045
01:02:29,586 --> 01:02:32,965
that'll presumably be
patched up somehow or other,
1046
01:02:32,965 --> 01:02:36,103
but leaving the
institutions that created it
1047
01:02:36,103 --> 01:02:37,965
pretty much in place.
1048
01:02:37,965 --> 01:02:40,137
A couple of days ago,
the Treasury Department,
1049
01:02:40,137 --> 01:02:44,482
as you read, permitted
early TARP repayments,
1050
01:02:45,758 --> 01:02:50,275
which actually reduce capacity,
1051
01:02:50,275 --> 01:02:53,275
it was touted as giving
money back to the public.
1052
01:02:53,275 --> 01:02:55,793
In fact, as was
pointed out right away,
1053
01:02:55,793 --> 01:02:59,206
it reduces the capacity
of banks to lend,
1054
01:02:59,206 --> 01:03:01,413
although it does allow
them to pour money
1055
01:03:01,413 --> 01:03:05,413
into the pockets of
the few who matter.
1056
01:03:05,413 --> 01:03:08,655
And the mood on Wall
Street was captured
1057
01:03:08,655 --> 01:03:11,000
by two Bank of
New York employees
1058
01:03:11,000 --> 01:03:15,275
who predicted that their
lives and pay would improve,
1059
01:03:15,275 --> 01:03:18,103
even if the broader
economy did not.
1060
01:03:18,103 --> 01:03:21,758
That's paraphrasing
Adam Smith's observation
1061
01:03:21,758 --> 01:03:25,689
that the architects of policy
protect their own interests,
1062
01:03:25,689 --> 01:03:28,068
no matter how grievous
the effect on others,
1063
01:03:29,172 --> 01:03:31,448
and they are the
architects of policy.
1064
01:03:31,448 --> 01:03:35,862
Obama made sure to staff
his economic advisors
1065
01:03:35,862 --> 01:03:37,000
from that sector,
1066
01:03:40,896 --> 01:03:42,413
which has been pointed out too.
1067
01:03:42,413 --> 01:03:47,310
The former chief economist
of the IMF, Simon Johnson,
1068
01:03:48,862 --> 01:03:51,827
pointed out that the
Obama Administration
1069
01:03:51,827 --> 01:03:53,689
is just in the pocket
of Wall Street.
1070
01:03:54,724 --> 01:03:57,965
As he put it,
"Throughout the crisis,
1071
01:03:57,965 --> 01:04:00,000
"the government has
taken extreme care
1072
01:04:00,000 --> 01:04:03,413
"not to upset the interests
of the financial institutions
1073
01:04:03,413 --> 01:04:05,965
"or to question
the basic outlines
1074
01:04:05,965 --> 01:04:08,034
"of the system that got us here
1075
01:04:08,034 --> 01:04:10,068
"and the elite
business interests
1076
01:04:10,068 --> 01:04:13,034
"who played a central role
in creating the crisis
1077
01:04:14,379 --> 01:04:16,620
"with the implicit
backing of the government.
1078
01:04:17,586 --> 01:04:18,758
"They're still there
1079
01:04:18,758 --> 01:04:20,586
"and they're now
using their influence
1080
01:04:20,586 --> 01:04:25,586
"to prevent precisely the set
of reforms that are needed,
1081
01:04:26,931 --> 01:04:30,793
"and fast, to pull the
economy out of its nosedive."
1082
01:04:30,793 --> 01:04:33,793
He says, "The government
seems helpless
1083
01:04:33,793 --> 01:04:38,551
"or unwilling to act against
them, which is no surprise,
1084
01:04:38,551 --> 01:04:41,551
"considering who constitutes
and who backs the government."
1085
01:04:42,758 --> 01:04:46,965
Well, there's a far
more severe crisis,
1086
01:04:46,965 --> 01:04:49,241
even for the rich and powerful.
1087
01:04:49,241 --> 01:04:51,310
It happens to be discussed
in the same issue
1088
01:04:51,310 --> 01:04:53,896
of the New York Review
that I mentioned,
1089
01:04:53,896 --> 01:04:56,034
article by Bill McKibben.
1090
01:04:56,034 --> 01:04:57,620
He's been warning for years
1091
01:04:57,620 --> 01:05:00,379
about the dire impact
of global warming.
1092
01:05:01,482 --> 01:05:04,172
His current article,
worth reading,
1093
01:05:04,172 --> 01:05:06,655
that relies on the
British Stern Report,
1094
01:05:06,655 --> 01:05:08,862
which is sorta the
gold standard now.
1095
01:05:10,172 --> 01:05:13,931
On this basis, he concludes,
not unrealistically,
1096
01:05:13,931 --> 01:05:18,931
that 2009 may well turn
out to be the decisive year
1097
01:05:20,310 --> 01:05:22,793
in the human relationship
with our home planet.
1098
01:05:22,793 --> 01:05:27,137
The reason is that there's
a conference in December
1099
01:05:27,137 --> 01:05:30,379
in Copenhagen which
is supposed to set up
1100
01:05:30,379 --> 01:05:33,448
a new global accord
on global warming,
1101
01:05:33,448 --> 01:05:37,482
and he says it'll
tell us whether or not
1102
01:05:37,482 --> 01:05:41,068
our political systems are up
to the unprecedented challenge
1103
01:05:41,068 --> 01:05:43,448
that climate change represents.
1104
01:05:43,448 --> 01:05:46,206
Now, he thinks that
the signals are mixed.
1105
01:05:46,206 --> 01:05:49,103
To me, that seems
kind of optimistic,
1106
01:05:49,103 --> 01:05:53,827
unless there's really a
massive public campaign
1107
01:05:53,827 --> 01:05:57,655
to overcome the
insistence of the managers
1108
01:05:57,655 --> 01:06:00,241
of the state corporate sector
1109
01:06:00,241 --> 01:06:04,827
on privileging short-term
gain for the few
1110
01:06:04,827 --> 01:06:07,724
over the hope that
their grandchildren
1111
01:06:07,724 --> 01:06:09,103
might have a decent future.
1112
01:06:10,275 --> 01:06:12,689
Well the picture could
be a lot more grim
1113
01:06:12,689 --> 01:06:15,689
even than the Stern
Report predicts, and
that's grim enough.
1114
01:06:17,034 --> 01:06:20,620
A couple days ago, a
group of MIT scientists
1115
01:06:20,620 --> 01:06:23,310
released the results
of what they described
1116
01:06:23,310 --> 01:06:27,413
as the most comprehensive
modeling yet carried out
1117
01:06:27,413 --> 01:06:29,517
on the likelihood
of how much hotter
1118
01:06:29,517 --> 01:06:32,448
the Earth's climate will
get in this century,
1119
01:06:32,448 --> 01:06:35,931
which shows that without
rapid and massive action,
1120
01:06:35,931 --> 01:06:38,931
the problem will be
about twice as severe
1121
01:06:38,931 --> 01:06:41,862
as previously estimated
a couple years ago.
1122
01:06:43,103 --> 01:06:45,137
And it could be
even worse than that
1123
01:06:45,137 --> 01:06:48,344
because their model does
not fully incorporate
1124
01:06:49,931 --> 01:06:52,620
positive feedbacks
that can occur.
1125
01:06:52,620 --> 01:06:55,793
For example, the
increased temperature
1126
01:06:55,793 --> 01:07:00,793
that is causing melting
of permafrost in
the arctic regions,
1127
01:07:04,241 --> 01:07:07,172
which is gonna release
huge amounts of methane.
1128
01:07:07,172 --> 01:07:08,724
That's worse than CO2.
1129
01:07:10,068 --> 01:07:11,724
The leader of the project
says there's no way
1130
01:07:11,724 --> 01:07:14,517
the world can or
should take these risks
1131
01:07:14,517 --> 01:07:17,172
and he says the least-cost
option to lower the risk
1132
01:07:17,172 --> 01:07:20,206
is to start now and
steadily transform
1133
01:07:20,206 --> 01:07:23,413
the global energy system
over the coming decades
1134
01:07:23,413 --> 01:07:27,965
to low or zero
greenhouse-gas-emitting
technologies,
1135
01:07:27,965 --> 01:07:29,862
and there's very
little sign of that.
1136
01:07:31,310 --> 01:07:35,724
Well, furthermore, while new
technologies are essential,
1137
01:07:35,724 --> 01:07:38,068
the problems go
well beyond that.
1138
01:07:38,068 --> 01:07:41,793
In fact, they go beyond the
current technical debates
1139
01:07:41,793 --> 01:07:44,862
about just how to work
out cap-and-trade devices
1140
01:07:44,862 --> 01:07:47,068
being discussed in Congress.
1141
01:07:47,068 --> 01:07:49,965
We have to face something
much more far-reaching.
1142
01:07:51,103 --> 01:07:54,275
We have to face up to
the need to reverse
1143
01:07:54,275 --> 01:07:58,310
the huge state-corporate and
social engineering projects
1144
01:07:59,517 --> 01:08:01,551
of the post-Second
World War period.
1145
01:08:01,551 --> 01:08:03,137
We very consciously--
1146
01:08:03,137 --> 01:08:06,310
[audience applauding]
1147
01:08:10,172 --> 01:08:15,172
And they very consciously
promoted an energy-wasting
1148
01:08:16,448 --> 01:08:18,620
and environmentally destructive
fossil fuel economy.
1149
01:08:18,620 --> 01:08:21,620
It didn't happen by accident.
1150
01:08:21,620 --> 01:08:25,931
That the whole massive
project of suburbanization,
1151
01:08:25,931 --> 01:08:30,758
then destruction, and later
gentrification of inner cities.
1152
01:08:30,758 --> 01:08:35,344
The state-corporate program
began with a conspiracy
1153
01:08:35,344 --> 01:08:38,034
by General Motors,
Firestone Rubber,
1154
01:08:38,034 --> 01:08:41,034
Standard Oil of
California to buy up
1155
01:08:41,034 --> 01:08:45,206
and destroy efficient electric
transportation systems
1156
01:08:45,206 --> 01:08:48,862
in Los Angeles and
dozens of other cities.
1157
01:08:48,862 --> 01:08:51,620
They were actually convicted
of criminal conspiracy
1158
01:08:51,620 --> 01:08:55,413
and given a tap on the
wrist, like a $5,000 fine.
1159
01:08:56,517 --> 01:08:58,931
The federal government
then took over.
1160
01:08:58,931 --> 01:09:01,448
It relocated infrastructure
1161
01:09:01,448 --> 01:09:04,655
and capital stock
to suburban areas
1162
01:09:04,655 --> 01:09:07,931
and also created a huge
interstate highway system
1163
01:09:07,931 --> 01:09:11,689
under the usual
pretext of defense.
1164
01:09:11,689 --> 01:09:13,344
Railroads were displaced
1165
01:09:13,344 --> 01:09:17,310
by government-financed
motor and air transport.
1166
01:09:18,724 --> 01:09:22,965
The public played almost no
role, apart from choosing within
1167
01:09:22,965 --> 01:09:26,896
the narrowly-structured
framework of options
1168
01:09:26,896 --> 01:09:29,172
that are designed by
state-corporate managers.
1169
01:09:30,517 --> 01:09:33,862
They are supported
by vast campaigns
1170
01:09:33,862 --> 01:09:37,689
to fabricate consumers
with created wants,
1171
01:09:38,620 --> 01:09:42,310
borrowing Veblen's terms.
1172
01:09:42,310 --> 01:09:46,655
One result is the
atomization of the society
1173
01:09:46,655 --> 01:09:51,655
and the entrapment of isolated
individuals with huge debts.
1174
01:09:53,000 --> 01:09:56,000
These efforts grew
outta the recognition
1175
01:09:56,000 --> 01:09:58,241
that I mentioned a century ago,
1176
01:09:58,241 --> 01:10:02,034
that democratic achievements
have to be curtailed
1177
01:10:02,034 --> 01:10:06,413
by shaping attitudes
and beliefs;
1178
01:10:08,000 --> 01:10:09,620
as the business press put it,
1179
01:10:09,620 --> 01:10:12,896
directing people to
superficial things of life,
1180
01:10:12,896 --> 01:10:14,517
like fashionable consumption.
1181
01:10:15,896 --> 01:10:20,344
All of that's necessary to
ensure that the opulent minority
1182
01:10:20,344 --> 01:10:25,344
are protected from ignorant
and meddlesome outsiders,
1183
01:10:26,068 --> 01:10:27,275
namely the population.
1184
01:10:27,275 --> 01:10:29,862
Let me just add a
personal note on that.
1185
01:10:29,862 --> 01:10:33,000
I came down here this
afternoon by the Acela;
1186
01:10:33,000 --> 01:10:34,689
you know, the jewel in the crown
1187
01:10:34,689 --> 01:10:38,931
of new high-speed
railroad technology.
1188
01:10:38,931 --> 01:10:42,827
The first time I came
from Boston to New York
1189
01:10:42,827 --> 01:10:47,379
was 60 years ago, and there
was improvement since then.
1190
01:10:47,379 --> 01:10:50,068
It was five minutes faster
today than it was 60 years ago.
1191
01:10:50,068 --> 01:10:51,655
[audience laughing]
1192
01:10:51,655 --> 01:10:54,827
[audience applauding]
1193
01:10:59,103 --> 01:11:01,000
While state-corporate power
1194
01:11:01,000 --> 01:11:05,310
was vigorously promoting
privatization of life
1195
01:11:05,310 --> 01:11:07,482
and maximal waste of energy,
1196
01:11:07,482 --> 01:11:10,793
it was also undermining
the efficient choices
1197
01:11:10,793 --> 01:11:14,137
that the market doesn't
and can't provide.
1198
01:11:14,137 --> 01:11:16,896
That's another
highly destructive
1199
01:11:16,896 --> 01:11:19,379
built-in market inefficiency.
1200
01:11:19,379 --> 01:11:20,586
So, to put it simply,
1201
01:11:20,586 --> 01:11:24,931
if I wanna get home from
work in the evening,
1202
01:11:24,931 --> 01:11:27,448
the market does
allow me a choice
1203
01:11:27,448 --> 01:11:29,724
between, say, a
Ford and a Toyota,
1204
01:11:29,724 --> 01:11:34,068
but it doesn't allow me a choice
between a car and a subway,
1205
01:11:34,068 --> 01:11:36,000
which would be much
more inefficient.
1206
01:11:36,000 --> 01:11:37,206
And maybe everybody wants it,
1207
01:11:37,206 --> 01:11:39,413
but the market doesn't
allow that choice.
1208
01:11:39,413 --> 01:11:41,275
That's a social decision.
1209
01:11:41,275 --> 01:11:42,965
And in a democratic society,
1210
01:11:42,965 --> 01:11:45,448
it would be a decision
of an organized public,
1211
01:11:45,448 --> 01:11:48,517
but that's just what
the elite attack
1212
01:11:48,517 --> 01:11:50,517
on democracy seeks to undermine.
1213
01:11:52,000 --> 01:11:54,068
Now, these consequences
are right before our eyes
1214
01:11:54,068 --> 01:11:55,896
in ways that are
sometimes surreal.
1215
01:11:56,724 --> 01:11:57,931
A couple of weeks ago,
1216
01:11:57,931 --> 01:12:00,000
the Wall Street
Journal had an article
1217
01:12:00,000 --> 01:12:04,379
reporting that the
US transportation
chief is in Spain.
1218
01:12:04,379 --> 01:12:06,965
He's meeting with
high-speed rail suppliers.
1219
01:12:08,103 --> 01:12:10,206
Europe's engineering
and rail companies
1220
01:12:10,206 --> 01:12:15,206
are lining up for
some potentially
lucrative US contracts
1221
01:12:16,068 --> 01:12:18,448
for high-speed rail projects.
1222
01:12:18,448 --> 01:12:22,482
At stake is $13 billion
in stimulus funds
1223
01:12:22,482 --> 01:12:25,310
that the Obama
Administration is allocating
1224
01:12:25,310 --> 01:12:28,655
to upgrade existing rail
lines and build new ones
1225
01:12:28,655 --> 01:12:31,103
that would one day
rival Europe's.
1226
01:12:32,482 --> 01:12:34,413
So, think what's happening.
1227
01:12:34,413 --> 01:12:37,241
Spain and other
European countries
1228
01:12:37,241 --> 01:12:40,379
are hoping to get
US taxpayer funding
1229
01:12:40,379 --> 01:12:44,000
for high-speed rail and
related infrastructure.
1230
01:12:44,000 --> 01:12:48,517
And at the very same time,
Washington is busy dismantling
1231
01:12:49,448 --> 01:12:52,448
leading sectors of US industry
1232
01:12:52,448 --> 01:12:55,724
and ruining the lives of
workers and communities
1233
01:12:56,931 --> 01:12:58,413
who could easily
do it themselves.
1234
01:12:59,931 --> 01:13:03,620
It's pretty hard to conjure
up a more damning indictment
1235
01:13:03,620 --> 01:13:06,551
of the economic system
that's been constructed
1236
01:13:06,551 --> 01:13:09,310
by state-corporate managers.
1237
01:13:09,310 --> 01:13:12,241
Surely, the auto industry
could be reconstructed
1238
01:13:12,241 --> 01:13:13,896
to produce what
the country needs
1239
01:13:13,896 --> 01:13:16,862
using its highly-skilled
workforce.
1240
01:13:16,862 --> 01:13:20,000
[audience applauding]
1241
01:13:27,137 --> 01:13:29,275
But that's not
even on the agenda.
1242
01:13:29,275 --> 01:13:30,862
That's not even being discussed.
1243
01:13:30,862 --> 01:13:32,551
Rather, we'll go to Spain
1244
01:13:32,551 --> 01:13:34,724
and we'll give 'em taxpayer
money for them to do it
1245
01:13:34,724 --> 01:13:38,275
while we destroy the
capacity to do it here.
1246
01:13:38,275 --> 01:13:40,068
It's been done before.
1247
01:13:40,068 --> 01:13:41,724
So, during World War II,
1248
01:13:42,827 --> 01:13:44,689
it was kind of a
semi-command economy,
1249
01:13:44,689 --> 01:13:46,275
government-organized economy.
1250
01:13:50,000 --> 01:13:50,965
That's what happened.
1251
01:13:50,965 --> 01:13:52,241
Industry was reconstructed
1252
01:13:52,241 --> 01:13:54,758
for the purposes of
war, dramatically.
1253
01:13:54,758 --> 01:13:57,068
It not only ended
the Depression,
1254
01:13:57,068 --> 01:14:01,310
but it initiated the most
spectacular period of growth
1255
01:14:01,310 --> 01:14:03,241
in economic history.
1256
01:14:03,241 --> 01:14:06,448
In four years, US
industrial production
1257
01:14:06,448 --> 01:14:11,448
just about quadrupled as the
economy was retooled for war,
1258
01:14:12,896 --> 01:14:15,275
and that laid the basis for
the golden age that followed.
1259
01:14:15,275 --> 01:14:18,551
Well, warnings about the
purposeful destruction
1260
01:14:18,551 --> 01:14:23,551
of US productive capacity have
been familiar for decades,
1261
01:14:25,000 --> 01:14:27,586
maybe most prominently by
the late Seymour Melman,
1262
01:14:27,586 --> 01:14:29,448
who many of us knew well.
1263
01:14:30,862 --> 01:14:32,655
Melman was also one of
those who pointed the way
1264
01:14:32,655 --> 01:14:36,517
to a sensible way to
reverse the process.
1265
01:14:37,689 --> 01:14:39,724
This state-corporate
leadership, of course,
1266
01:14:39,724 --> 01:14:42,482
has other commitments, but
there's no reason for passivity
1267
01:14:42,482 --> 01:14:46,000
on the part of the public,
the so-called stakeholders,
1268
01:14:46,000 --> 01:14:47,931
workers and community.
1269
01:14:47,931 --> 01:14:50,103
I mean, with enough
popular support,
1270
01:14:50,103 --> 01:14:52,103
they could just
take over the plants
1271
01:14:52,103 --> 01:14:53,206
and carry out the task
1272
01:14:53,206 --> 01:14:54,827
of restricted
construction themselves.
1273
01:14:54,827 --> 01:14:58,000
[audience applauding]
1274
01:15:02,172 --> 01:15:05,206
It's not a very exotic proposal.
1275
01:15:05,206 --> 01:15:09,448
One of the standard
texts on corporations
1276
01:15:09,448 --> 01:15:11,379
in the economics
literature points out
1277
01:15:11,379 --> 01:15:13,931
that nowhere is it
written in stone
1278
01:15:13,931 --> 01:15:15,344
that the short-term interests
1279
01:15:15,344 --> 01:15:20,034
of corporate shareholders
in the United States
1280
01:15:22,034 --> 01:15:24,103
deserve a higher priority
1281
01:15:24,103 --> 01:15:26,620
than all other
corporate stakeholders,
1282
01:15:26,620 --> 01:15:28,103
workers and community.
1283
01:15:28,103 --> 01:15:30,896
That's a state-corporate
decision.
1284
01:15:30,896 --> 01:15:33,344
That has nothing to do
with economic theory.
1285
01:15:33,344 --> 01:15:36,275
It's also important
to remind outselves
1286
01:15:36,275 --> 01:15:39,000
that the notion of
workers' control
1287
01:15:39,000 --> 01:15:41,482
is as American as apple pie.
1288
01:15:42,517 --> 01:15:45,689
[audience applauding]
1289
01:15:49,586 --> 01:15:51,655
It's kinda been
suppressed, but it's there.
1290
01:15:51,655 --> 01:15:54,000
In the early days of the
Industrial Revolution
1291
01:15:54,000 --> 01:15:58,758
in New England, working people
just took it for granted
1292
01:15:58,758 --> 01:16:01,620
that those who work in
the mills should own them.
1293
01:16:01,620 --> 01:16:06,413
And they also regarded wage
labor as different from slavery
1294
01:16:06,413 --> 01:16:10,586
only in that it was temporary,
also Abraham Lincoln's view.
1295
01:16:13,620 --> 01:16:14,862
There have been immense efforts
1296
01:16:14,862 --> 01:16:18,620
to drive these thoughts
out of people's heads
1297
01:16:18,620 --> 01:16:21,655
to win what the
business world calls
1298
01:16:21,655 --> 01:16:24,793
the everlasting battle
for the minds of men.
1299
01:16:24,793 --> 01:16:27,931
Now, on the surface, they
may appear to have succeeded,
1300
01:16:27,931 --> 01:16:30,551
but I don't think you
have to dig too deeply
1301
01:16:30,551 --> 01:16:35,034
to find out that they're
latent and they can be revived,
1302
01:16:35,034 --> 01:16:38,137
and there have been some
important concrete efforts.
1303
01:16:38,137 --> 01:16:42,241
One of them was undertaken 30
years ago in Youngstown, Ohio,
1304
01:16:42,241 --> 01:16:44,896
where US Steel was
going to shut down
1305
01:16:44,896 --> 01:16:49,206
a major facility that was at
the heart of this steel town.
1306
01:16:49,206 --> 01:16:50,827
And there were
substantial protests
1307
01:16:50,827 --> 01:16:53,586
by the workforce and
by the community.
1308
01:16:53,586 --> 01:16:56,758
Then there was an effort
led by Staughton Lynd
1309
01:16:56,758 --> 01:16:59,000
to bring to the
courts the principle
1310
01:16:59,000 --> 01:17:02,931
that stakeholders should
have the highest priority.
1311
01:17:02,931 --> 01:17:05,413
Well, the effort
failed that time,
1312
01:17:05,413 --> 01:17:08,724
but with enough popular
support it could succeed.
1313
01:17:08,724 --> 01:17:12,827
And right now is a propitious
time to revive such efforts,
1314
01:17:12,827 --> 01:17:15,827
although it'd be necessary
and we have to do this
1315
01:17:15,827 --> 01:17:20,379
to overcome the effects of
this concentrated campaign
1316
01:17:20,379 --> 01:17:23,379
to drive our own history and
culture out of our minds.
1317
01:17:24,482 --> 01:17:26,068
There was a very
dramatic illustration
1318
01:17:26,068 --> 01:17:28,793
of the success of this
campaign just a few months ago.
1319
01:17:30,000 --> 01:17:33,620
In February, President
Obama decided to show
1320
01:17:33,620 --> 01:17:35,655
his solidarity with
working people.
1321
01:17:37,034 --> 01:17:40,896
He went to Illinois to
give a talk at a factory.
1322
01:17:40,896 --> 01:17:45,551
Now, the factory he chose was
the Caterpillar Corporation.
1323
01:17:45,551 --> 01:17:50,068
Now, that was over the strong
objections of church groups,
1324
01:17:50,068 --> 01:17:52,586
peace groups, human
rights groups,
1325
01:17:52,586 --> 01:17:57,448
who were protesting
Caterpillar's role
1326
01:17:57,448 --> 01:18:00,965
in providing what amounted to
weapons of mass destruction
1327
01:18:00,965 --> 01:18:04,103
in the Israeli
occupied territories.
1328
01:18:04,103 --> 01:18:06,758
Apparently forgotten,
however, was something else.
1329
01:18:07,931 --> 01:18:12,655
In the 1980s, after
Reagan had dismantled
1330
01:18:13,862 --> 01:18:16,655
the air traffic
controllers union,
1331
01:18:16,655 --> 01:18:21,034
Caterpillar managers decided
to rescind their labor contract
1332
01:18:21,034 --> 01:18:24,413
with the United Auto Workers
and to destroy the union
1333
01:18:24,413 --> 01:18:27,172
by bringing in scabs
to break a strike.
1334
01:18:27,172 --> 01:18:30,517
That was the first time that
had happened in generations.
1335
01:18:30,517 --> 01:18:34,586
Now, that practice is illegal
in other industrial countries,
1336
01:18:34,586 --> 01:18:36,758
apart from South
Africa at the time.
1337
01:18:38,034 --> 01:18:39,275
Not now.
1338
01:18:39,275 --> 01:18:41,689
No, the United States is
in splendid isolation,
1339
01:18:41,689 --> 01:18:42,689
as far as I'm aware.
1340
01:18:44,137 --> 01:18:46,965
Well, at that time, Obama
was a civil rights lawyer
1341
01:18:46,965 --> 01:18:51,620
in Chicago and he certainly
read the Chicago Tribune,
1342
01:18:51,620 --> 01:18:52,793
which ran quite a good
1343
01:18:52,793 --> 01:18:55,586
and very careful
study of these events.
1344
01:18:55,586 --> 01:18:58,344
They reported that
the union was stunned
1345
01:18:58,344 --> 01:19:00,931
to find that unemployed workers
1346
01:19:00,931 --> 01:19:04,344
crossed the picket
line with no remorse,
1347
01:19:04,344 --> 01:19:07,758
while Caterpillar workers
found little moral support
1348
01:19:07,758 --> 01:19:09,413
in their community.
1349
01:19:09,413 --> 01:19:11,000
This is one of the
many communities
1350
01:19:11,000 --> 01:19:13,275
where the union had lifted
1351
01:19:13,275 --> 01:19:15,586
the standard of living
for entire communities.
1352
01:19:17,655 --> 01:19:21,241
Wiping out these memories
is another victory
1353
01:19:21,241 --> 01:19:23,379
in the relentless campaign
1354
01:19:23,379 --> 01:19:27,310
to destroy workers'
rights and democracy,
1355
01:19:27,310 --> 01:19:29,068
which is constantly waged
1356
01:19:29,068 --> 01:19:32,517
by the highly class-conscious
business classes.
1357
01:19:32,517 --> 01:19:35,137
Now, the union leadership
had refused to understand.
1358
01:19:36,689 --> 01:19:41,689
It was only in 1978 that
UAW President Doug Fraser
1359
01:19:43,758 --> 01:19:45,310
recognized what was happening
1360
01:19:46,793 --> 01:19:50,827
and criticized the leaders
of the business community,
1361
01:19:50,827 --> 01:19:55,206
I'm quoting him, for waging
a one-sided class war
1362
01:19:55,206 --> 01:19:58,482
in this country, a war
against working people,
1363
01:19:58,482 --> 01:20:01,241
the unemployed, the
poor, the minorities,
1364
01:20:01,241 --> 01:20:03,379
the very young and the very old,
1365
01:20:03,379 --> 01:20:06,310
and even many in the middle
class of our society,
1366
01:20:06,310 --> 01:20:08,655
and for having
broken and discarded
1367
01:20:08,655 --> 01:20:12,724
the fragile unwritten
compact previously existing
1368
01:20:12,724 --> 01:20:16,310
during a period of
growth and progress.
1369
01:20:16,310 --> 01:20:18,379
That was 1979.
1370
01:20:18,379 --> 01:20:20,413
And, in fact,
placing one's faith
1371
01:20:20,413 --> 01:20:25,206
in a compact with owners and
managers is a suicide pact.
1372
01:20:25,206 --> 01:20:29,206
The UAW's discovering
that right now,
1373
01:20:29,206 --> 01:20:33,655
as the state-corporate
leadership proceeds to eliminate
1374
01:20:33,655 --> 01:20:36,862
the hard-fought gains
of working people
1375
01:20:36,862 --> 01:20:40,862
while dismantling the
productive core of the economy
1376
01:20:40,862 --> 01:20:43,862
and sending the transportation
secretary to Spain
1377
01:20:43,862 --> 01:20:47,689
to get them to do what
American workers could do,
1378
01:20:48,586 --> 01:20:50,931
at taxpayer expense, of course.
1379
01:20:50,931 --> 01:20:54,000
Well, that's only a
fragment of what's underway
1380
01:20:54,000 --> 01:20:57,103
and it highlights the importance
1381
01:20:57,103 --> 01:21:00,241
of short- and
long-term strategies
1382
01:21:00,241 --> 01:21:04,586
to build and part-resurrect
the foundations
1383
01:21:04,586 --> 01:21:06,896
of a functioning
democratic society.
1384
01:21:07,758 --> 01:21:11,448
One short-term goal is to revive
1385
01:21:11,448 --> 01:21:14,827
a strong independent
labor movement.
1386
01:21:14,827 --> 01:21:17,482
In its heyday, it
was a critical base
1387
01:21:17,482 --> 01:21:21,068
for advancing democracy
and human and civil rights.
1388
01:21:22,241 --> 01:21:24,482
It's a primary reason
why it's been subjected
1389
01:21:24,482 --> 01:21:27,965
to such unremitting attack
in policy and propaganda.
1390
01:21:29,344 --> 01:21:33,379
An immediate goal right
now is to pressure Congress
1391
01:21:33,379 --> 01:21:35,620
to permit organizing rights,
1392
01:21:35,620 --> 01:21:39,379
the Employer Free Choice
Act legislation that was--
1393
01:21:39,379 --> 01:21:42,551
[audience applauding]
1394
01:21:46,827 --> 01:21:50,517
That was promised, but now
seems to be languishing.
1395
01:21:50,517 --> 01:21:54,793
And a longer-term goal
is to win the educational
1396
01:21:54,793 --> 01:21:59,103
and cultural battle that's
been waged with such bitterness
1397
01:21:59,103 --> 01:22:01,827
in the one-sided class war
1398
01:22:01,827 --> 01:22:06,000
that the UAW president
perceived far too late.
1399
01:22:06,000 --> 01:22:09,965
That means tearing apart
an enormous edifice
1400
01:22:09,965 --> 01:22:13,137
of delusions about
markets, free trade,
1401
01:22:13,137 --> 01:22:16,655
and democracy that's been
assiduously constructed
1402
01:22:16,655 --> 01:22:20,724
over many years and to
overcome the marginalization
1403
01:22:20,724 --> 01:22:23,103
and atomization of the public.
1404
01:22:25,000 --> 01:22:27,931
Now, of all the crises
that afflict us,
1405
01:22:27,931 --> 01:22:29,620
I think, my own feeling is that
1406
01:22:29,620 --> 01:22:32,827
this growing democratic
deficit may be the most severe.
1407
01:22:34,034 --> 01:22:35,379
Unless its reversed,
1408
01:22:36,551 --> 01:22:39,931
Arundhati Roy's forecast
might prove accurate,
1409
01:22:39,931 --> 01:22:42,172
and not in the distant future.
1410
01:22:42,172 --> 01:22:46,724
The conversion of
democracy to a performance
1411
01:22:46,724 --> 01:22:50,034
in which the public
are only spectators
1412
01:22:50,034 --> 01:22:54,896
might well lead inexorably
to what she calls
1413
01:22:54,896 --> 01:22:56,827
the endgame for the human race.
1414
01:22:57,931 --> 01:22:59,068
Thanks.
1415
01:22:59,068 --> 01:23:02,241
[audience applauding]
118003
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