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These are the user uploaded subtitles that are being translated: 1 00:00:38,172 --> 00:00:41,344 [audience applauding] 2 00:00:50,793 --> 00:00:54,344 - It is such a great honor to be here tonight 3 00:00:54,344 --> 00:00:56,206 to make this introduction. 4 00:00:56,206 --> 00:01:01,206 As we're standing here, I was thinking back 14 years ago. 5 00:01:05,206 --> 00:01:09,344 It was 1995. 6 00:01:09,344 --> 00:01:10,551 It was mid-November. 7 00:01:11,724 --> 00:01:14,137 There was a forum on globalization 8 00:01:14,137 --> 00:01:17,068 that was taking place here at Riverside. 9 00:01:18,241 --> 00:01:21,379 And it was there that I heard the announcement 10 00:01:22,758 --> 00:01:26,206 that Ken Saro-Wiwa and eight other Ogoni activists 11 00:01:26,206 --> 00:01:29,103 had been executed in Nigeria. 12 00:01:30,655 --> 00:01:34,965 Ken Saro-Wiwa, who is the writer-environmentalist 13 00:01:34,965 --> 00:01:38,413 who had dared to take on the nexus 14 00:01:38,413 --> 00:01:41,310 of corporate and military power, 15 00:01:41,310 --> 00:01:46,310 the military dictatorship of Nigeria, and Shell Corporation, 16 00:01:47,793 --> 00:01:50,931 which had crisscrossed his land in the Niger Delta, 17 00:01:50,931 --> 00:01:55,931 Ogoniland, with gas pipelines above the ground 18 00:01:57,206 --> 00:02:00,241 burning off the gas in flares 19 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, 21 00:02:08,965 --> 00:02:10,931 and yet not profiting from the drilling 22 00:02:12,034 --> 00:02:14,482 and taking the power out of the Earth 23 00:02:14,482 --> 00:02:17,206 and giving it to the most powerful on Earth, 24 00:02:17,206 --> 00:02:20,551 disempowering the host communities from which it had come. 25 00:02:21,965 --> 00:02:26,827 I had met Ken Saro-Wiwa in 1994, when a Nigerian activist 26 00:02:27,965 --> 00:02:31,103 brought him into the studios of WBAI. 27 00:02:34,482 --> 00:02:37,241 We were doing Wakeup Call that morning 28 00:02:37,241 --> 00:02:41,344 and Bernard White and I sat there as Ken Saro-Wiwa, 29 00:02:41,344 --> 00:02:44,655 who was not one of the scheduled guests that morning, 30 00:02:44,655 --> 00:02:45,551 held forth. 31 00:02:47,034 --> 00:02:51,724 And he told the story of what he was confronting in Nigeria, 32 00:02:54,000 --> 00:02:56,068 saying the world had to know, 33 00:02:57,275 --> 00:03:00,206 and ending by saying, "I am a marked man." 34 00:03:01,275 --> 00:03:04,827 He returned to Nigeria, was imprisoned, 35 00:03:04,827 --> 00:03:07,517 was tried, and he was executed. 36 00:03:09,000 --> 00:03:14,000 Last week, as we sat in the studios of Democracy Now, 37 00:03:15,413 --> 00:03:18,000 we broadcast the voice of Ken from those days on WBAI 38 00:03:19,793 --> 00:03:22,275 and we broadcast his son, Ken Wiwa, 39 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, 41 00:03:34,551 --> 00:03:38,655 but they would then win $15.5 million for the Wiwa family 42 00:03:41,379 --> 00:03:44,000 and other victims and the people of Ogoniland. 43 00:03:44,827 --> 00:03:48,000 [audience applauding] 44 00:03:51,517 --> 00:03:55,931 We also played the words of Ken Saro-Wiwa's father, 45 00:03:55,931 --> 00:04:00,103 Jim Wiwa, who Jeremy Scahill and I got to meet 46 00:04:00,103 --> 00:04:02,620 in the Niger Delta in Ogoniland 47 00:04:02,620 --> 00:04:06,517 when we visited three years after Ken's death, 48 00:04:06,517 --> 00:04:08,931 when Jim Wiwa said directly to us, 49 00:04:08,931 --> 00:04:12,310 "Shell is responsible for my son's death." 50 00:04:13,551 --> 00:04:16,413 And as we sat there listening to the father, 51 00:04:16,413 --> 00:04:18,310 the son, and the grandson, 52 00:04:19,517 --> 00:04:22,310 I was sitting next to Judith Brown Chomsky; 53 00:04:22,310 --> 00:04:25,448 she was our guest for the hour. 54 00:04:25,448 --> 00:04:29,586 Judith Brown Chomsky was one of the leading attorneys 55 00:04:29,586 --> 00:04:33,793 in this case that led to this landmark settlement. 56 00:04:34,931 --> 00:04:37,586 When I asked Noam tonight 57 00:04:37,586 --> 00:04:40,482 how he would like to be introduced, he said, 58 00:04:40,482 --> 00:04:43,896 "Tell them I'm the brother-in-law of Judith Brown Chomsky." 59 00:04:43,896 --> 00:04:45,310 [audience laughing] 60 00:04:45,310 --> 00:04:48,482 [audience applauding] 61 00:04:55,655 --> 00:05:00,655 Judith is married to Noam's younger brother, David. 62 00:05:02,000 --> 00:05:06,310 Noam was born December 7th, 1928, in Philadelphia. 63 00:05:08,000 --> 00:05:13,000 By the age of 10, he was writing an extended essay 64 00:05:14,413 --> 00:05:17,896 against fascism and about the Spanish Civil War. 65 00:05:17,896 --> 00:05:19,068 [audience laughing] 66 00:05:19,068 --> 00:05:20,448 Don't be discouraged. 67 00:05:20,448 --> 00:05:24,034 [audience laughing] 68 00:05:24,034 --> 00:05:28,586 At 14, he was getting his education, as he tells it, 69 00:05:28,586 --> 00:05:32,137 in the back of the 72nd Street subway station 70 00:05:32,137 --> 00:05:33,689 here in New York. 71 00:05:33,689 --> 00:05:36,344 You go out the front, that's where you go buy newspapers 72 00:05:36,344 --> 00:05:39,000 in the front newspaper stand where people would rush by, 73 00:05:39,000 --> 00:05:40,724 buy their papers and go. 74 00:05:40,724 --> 00:05:43,517 But it was the back, less-populated stand 75 00:05:43,517 --> 00:05:45,344 where the stragglers would be, 76 00:05:45,344 --> 00:05:48,517 where his uncle ran that newspaper stand, 77 00:05:48,517 --> 00:05:52,137 and they would sit and debate and discuss politics. 78 00:05:52,137 --> 00:05:54,827 That's where Noam says he was getting his education. 79 00:05:54,827 --> 00:05:57,517 I hear that they just opened the back again 80 00:05:57,517 --> 00:05:59,068 about four years ago, 81 00:05:59,068 --> 00:06:01,931 the south side of the 72nd Street subway station, 82 00:06:01,931 --> 00:06:05,137 but I understand they removed the newspaper stand. 83 00:06:05,137 --> 00:06:08,206 Maybe they're a little concerned about some young Chomskys 84 00:06:08,206 --> 00:06:10,172 getting educated for the future. 85 00:06:10,172 --> 00:06:11,689 [audience laughing] 86 00:06:11,689 --> 00:06:15,000 Well, within two years, that education clearly got him far, 87 00:06:15,000 --> 00:06:19,758 because, at 16, he was at the University of Pennsylvania, 88 00:06:19,758 --> 00:06:24,551 he went on to the Harvard Society of Fellows, 89 00:06:24,551 --> 00:06:27,689 where he continued his research into linguistics. 90 00:06:27,689 --> 00:06:31,482 By 1953, Chomsky had broken almost entirely 91 00:06:31,482 --> 00:06:34,379 from the field as it existed. 92 00:06:34,379 --> 00:06:39,379 He became a professor at the University of Massachusetts, 93 00:06:40,793 --> 00:06:44,206 Massachusetts Institute of Technology in 1955 94 00:06:44,206 --> 00:06:46,724 at the age of 26. 95 00:06:46,724 --> 00:06:49,241 I forgot to say he'd already gotten his Ph.D. again 96 00:06:49,241 --> 00:06:51,448 at the University of Pennsylvania. 97 00:06:52,896 --> 00:06:57,344 And while he broke ground as a world-renowned linguist, 98 00:06:58,793 --> 00:07:01,827 shattering all previous paradigms in linguistics, 99 00:07:01,827 --> 00:07:04,551 in a world I know very little about-- 100 00:07:04,551 --> 00:07:06,620 [audience applauding] 101 00:07:06,620 --> 00:07:10,482 He was also taking on the war in Vietnam, 102 00:07:11,896 --> 00:07:16,448 so much so that his lifetime partner, his wife Carol, 103 00:07:17,620 --> 00:07:19,793 went back to school to get her graduate degree 104 00:07:19,793 --> 00:07:23,620 in linguistics so that she could be, if need be, 105 00:07:23,620 --> 00:07:27,275 the breadwinner if Noam was imprisoned. 106 00:07:27,275 --> 00:07:29,448 That's how she described it. 107 00:07:29,448 --> 00:07:30,965 She went on to be a professor 108 00:07:30,965 --> 00:07:35,310 at the Harvard Graduate School of Education of linguistics 109 00:07:35,310 --> 00:07:40,068 and also broke ground on child language acquisition. 110 00:07:41,206 --> 00:07:43,000 Noam and Carol have known each other 111 00:07:43,000 --> 00:07:45,103 since I think he was three 112 00:07:46,241 --> 00:07:50,172 and he only lost Carol a few months ago, 113 00:07:50,172 --> 00:07:54,000 this lifetime partnership a great model for relationships, 114 00:07:54,000 --> 00:07:58,137 his personal life also a model for all of us 115 00:07:58,137 --> 00:08:02,241 of what it means to live a life of integrity. 116 00:08:07,206 --> 00:08:12,206 On Democracy Now, we have interviewed Noam many times 117 00:08:13,482 --> 00:08:16,931 and I think about 2002; 118 00:08:18,000 --> 00:08:20,724 it was about midnight, it was May 20th. 119 00:08:22,344 --> 00:08:26,206 Journalist Allan Nairn and I were in East Timor. 120 00:08:26,206 --> 00:08:28,275 It was a momentous time. 121 00:08:29,724 --> 00:08:34,689 After a quarter of a century of slaughter, of genocide, 122 00:08:36,068 --> 00:08:39,517 the people of East Timor were celebrating their freedom, 123 00:08:39,517 --> 00:08:40,689 those who had survived. 124 00:08:41,827 --> 00:08:43,620 The Indonesian military had killed off 125 00:08:43,620 --> 00:08:45,034 a third of the population. 126 00:08:46,448 --> 00:08:48,931 And I remember that night clearly as Kofi Annan, 127 00:08:48,931 --> 00:08:51,896 then-UN Secretary General, took the stage 128 00:08:51,896 --> 00:08:53,827 as they were handing over the power 129 00:08:53,827 --> 00:08:56,517 from the United Nations to the people of East Timor 130 00:08:56,517 --> 00:08:59,827 and then Xanana Gusmao, the rebel leader of East Timor, 131 00:08:59,827 --> 00:09:02,034 the founding president of East Timor, 132 00:09:02,034 --> 00:09:05,793 ascended to the podium and unfurled the flag 133 00:09:05,793 --> 00:09:09,344 of the Democratic Republic of East Timor. 134 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 139 00:09:26,586 --> 00:09:29,172 over the airwaves of Pacifica Radio 140 00:09:29,172 --> 00:09:31,482 throughout the United States. 141 00:09:31,482 --> 00:09:34,379 And at that moment, we called Noam, 142 00:09:34,379 --> 00:09:39,172 because it was Noam Chomsky, since 1975, 143 00:09:39,172 --> 00:09:42,310 actually on his birthday, on December 7th, 144 00:09:42,310 --> 00:09:44,000 when Indonesia invaded East Timor, 145 00:09:44,000 --> 00:09:49,000 who never let this story die, in so many of his books, 146 00:09:50,172 --> 00:09:53,862 so much of his writing, so many of his speeches, 147 00:09:53,862 --> 00:09:57,620 often introducing to people this point on a map 148 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 151 00:10:09,689 --> 00:10:12,137 and led us to take us those trips 152 00:10:12,137 --> 00:10:14,965 to try to expose what was happening. 153 00:10:14,965 --> 00:10:18,793 And I bet almost everyone here tonight in this sanctuary 154 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. 156 00:10:29,068 --> 00:10:30,793 When I am most affected as I travel the country 157 00:10:30,793 --> 00:10:33,344 are the young soldiers who come up to me. 158 00:10:34,517 --> 00:10:36,517 And when I ask them what made the difference, 159 00:10:36,517 --> 00:10:41,517 why they turned, how they could be so brave and courageous 160 00:10:43,000 --> 00:10:46,448 and resisting war, so often these young men and women 161 00:10:46,448 --> 00:10:51,448 will say, "Someone handed me a book of Noam Chomsky." 162 00:10:52,206 --> 00:10:54,724 [audience applauding] 163 00:11:04,275 --> 00:11:08,275 Arundhati Roy said something wonderful about Noam 164 00:11:08,275 --> 00:11:10,344 in her book, War Talk. 165 00:11:10,344 --> 00:11:14,068 Arundhati Roy, who spoke here in May of 2003. 166 00:11:15,655 --> 00:11:20,241 She has a chapter, The Loneliness of Noam Chomsky, 167 00:11:20,241 --> 00:11:23,620 where she writes, "When I first read Noam Chomsky, 168 00:11:23,620 --> 00:11:26,517 "it occurred to me that his marshaling of evidence, 169 00:11:26,517 --> 00:11:29,724 "the volume of it, the relentlessness of it, 170 00:11:29,724 --> 00:11:33,103 "was a little, how shall I put it, insane. 171 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 173 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. 175 00:11:41,931 --> 00:11:44,344 "But now, I understand that the magnitude 176 00:11:44,344 --> 00:11:46,448 "and intensity of Chomsky's work 177 00:11:46,448 --> 00:11:50,137 "is a barometer of the magnitude, scope, and relentlessness 178 00:11:50,137 --> 00:11:53,344 "of the propaganda machine that he's up against. 179 00:11:53,344 --> 00:11:55,344 "He's like the woodborer who lives 180 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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