News and Features
Pôrto Alegre, Brazil--In US living rooms, talk about such policy measures as the White House's proposed Free Trade Area of the Americas (FTAA) is likely to elicit clueless shrugs.
On Saturday, February 2, approximately 12,000 demonstrators gathered in New York City to protest the meeting of the World Economic Forum.
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"Not over my dead body will they raise your taxes," George W. Bush cryptically proclaimed. The press dutifully translated what he really meant, but few commented on the tastelessness of a wartime leader with troops in the field saying he was willing to die for the cause of lower taxes for the wealthy.
Never mind. The President's speech had no high public purpose or occasion. It was a political document, intended to undercut Senate majority leader Tom Daschle's prescriptions for economic recovery the previous day; it had more to do with gearing up for the 2002 Congressional elections than with speeding up the economic recovery. Bush's riposte signaled that the not-so-great debate of '02 is on.
Besides standing foursquare against any tax hikes, Bush offered only the same prescription for economic recovery as he has in the past: Let those at the top of the heap keep more of what they've got. Despite a stratospheric approval rating and a nation united behind him, he reaffirmed his fealty to his corporate underwriters and offered tax cuts for the rich at a time of obscene inequality. His partisan posturing on the stimulus plan showed that he thinks the economy will recover on its own, leaving the swelling ranks of jobless folk on their own.
Although superior to Bush's package, Daschle's was securely in the lineage of Bill Clinton's efforts to be both fiscal conservative and compassionate centrist. It positioned Democrats to campaign, amid economic recession, as the hair-shirt party of "fiscal responsibility," blaming Bush's tax cuts for the vanished (and largely notional) budget surpluses and evoking public nostalgia for the giddy boom of the late 1990s, which actually began heading south before Bush came to town. Daschle's minimalist list of stimulus measures shows a party leader out of touch with real conditions who thinks this downturn is a nonthreatening event that will soon be over, just as the stock-market cheerleaders are forecasting. Wiser heads on Wall Street, however, warn that any recovery will be weak and perhaps transient.
Even if the recession proves less serious than feared, the Democrats should be advocating spending on badly needed long-term projects, from schools to railroads, while pushing for extended and expanded unemployment compensation and health insurance and aid to states hard hit by new national-security costs.
Along with this expansive agenda the Dems should overcome their timidity and make the case for repeal of the bulk of last year's Bush tax cuts, particularly those provisions that benefit the wealthiest Americans. Those cuts will do little to stimulate the economy (even if they operate as promised--a dubious assumption), since they don't take effect for another three to six years. Instead, by assuring a greater stream of revenue from those who can best afford to pay, the Democrats can help forestall inevitable GOP efforts to claim that social programs must be cut to allow for military needs, while at the same time providing funds to address housing, hunger and poverty.
Teddy Roosevelt, whose biography is on Bush's bedside table, may have been less a foe of the malefactors of great wealth than his rhetoric claimed, but he did espouse a progressive agenda of reform, which included antitrust, financial regulation, the eight-hour workday, even a living wage. And Franklin Roosevelt in 1944 outlined an economic bill of rights that would redeem wartime sacrifices and secure the gains in income of the working class. All Bush can come up with is a thank-you note for his campaign donors.
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Talk about rebuilding New York, and sooner or later someone will pipe up that out of crisis comes opportunity. It depends on where you stand. Right now what poor and working-class New Yorkers have got is crisis, and unless a force of historic proportion develops to shift the course of things, what will follow is more of the same.
Taking the crisis part first, it's well-known that New York has lost 95,000 jobs since September 11, less well-known that it lost 75,000 in the twelve months prior, and that even in boom times 1.5 million people, most of them with jobs, were turning to soup kitchens. Now those kitchens have had to turn people away for lack of food, and grassroots community agencies, to which for at least ten years government has outsourced a whole range of human services, are themselves against the wall. This past autumn Mayor Giuliani ordered every city department other than fire, police and the board of education to cut its budget by 15 percent, meaning nonprofit groups with city contracts took a similar cut. Governor Pataki froze state money at a cost to nonprofits of more than $200 million. Meanwhile, foundations warned they'd make fewer grants, smaller grants, their capital having been clobbered on the stock market. And in fashioning end-of-year appeals, every group strove to connect to 9/11, because that's the trigger for charitable giving. September 11 relief funds are bulging with $1.1 billion. There's so much cash available for grief counseling that the big charities are fairly begging to give it away, but for tackling the material sources of grief-as-everyday-life among people who can claim no direct link to the twin towers--that's trickier.
At the Good Old Lower East Side, a tenants' rights and neighborhood preservation organization, we are looking at a worst-case loss of $200,000 out of our $500,000 annual budget. Meanwhile, the work goes on--only now we worry because one of our organizers has had asthma attacks from the air downtown while at housing court, because a lot of people we work with are depressed and scared, because the supposed era of good feeling ushered in by the tragedy hasn't stopped landlord harassment or evictions, because gentrification steams forward in the Lower East Side, because low-income people never just have housing problems; they have employment problems and health problems and family problems and immigration problems, and all of those are getting worse. From our counterparts in other groups, in areas from children's rights to prisoners' rights, we hear the same story of too little money and too much need. Drug and alcohol abuse is up, domestic violence is up, homelessness is way up (30,000 adults and children in city shelters, an all-time high). In December some 30,000 New York City recipients of public assistance hit federal time limits for welfare; in 2002 19,000 more will lose their benefits, left to compete with 95,000 displaced workers for jobs and services that are barely there.
One has to be a keen shopper for silver linings to see opportunity in all this, but for the past months, in a variety of venues, groups like ours have been meeting with legal services agencies, immigrant groups, unions, community activists, progressive politicians, economic policy analysts and others to discuss a people's agenda for rebuilding. For years politicians have been pronouncing on the value of work; now the state's commitment to work, but also to a living, must be tested. And if there are to be tax incentives to private companies, there must be a return in jobs, environmental safety, an expanded economic infrastructure--transportation, housing, communications, health, education. People are asking, Can we think of rebuilding that enhances all of New York's boroughs? Can we look at those holes where the towers stood and boldly imagine a different city, a better city? And can we mobilize an army to fight for that vision?
Even in the best of times that would be difficult. Now there's recession, and unless some major revenue sources are tapped, State Senator Eric Schneiderman says, "we're looking at something that makes the New York fiscal crisis of the 1970s look like a picnic in Coney Island." Only a fraction of the $20 billion that Bush promised to the city in September has materialized. The state and city are both running many billions of dollars in deficits; when the governor and mayor come out with their budgets in January and February, they are likely to strike at every social program, the better to impress Washington with their resolve to shoot the wounded. Again, the nonprofit service contractors, which are small and diffuse but account for about 15 percent of the city's budget, will be an attractive target. So will the city's civilian work force, already shrunk by 20 percent since 1993.
Schneiderman, for one, is calling for a freeze on about $4 billion in state tax cuts scheduled to go into effect in 2002; for reinstatement of the city's commuter tax; for repeal of the Rockefeller drug laws, which, he says, would save the state hundreds of millions a year. There are other ideas, including exacting sacrifices from the top 10 percent of New York's population, who doubled their wealth in the boom, and from city property holders, whose average tax rate has been frozen for ten years. The point is for New York's social justice forces to be organized, ready to struggle for every dollar and demand every good. Some of the bigger unions are saying they might want to give Mayor Mike Bloomberg a "honeymoon." Some in the media are still flogging the idea that there's a "new" New York, more generous, more one-for-all. It's the same New York, just worse. Only the rich have opportunity by right. The rest of us have to fight for it.
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During the week of December 17, US freighters are expected to dock in Cuban ports and begin offloading a historic shipment of foodstuffs. In a deal worth up to $30 million, the Castro government has purchased wheat, corn, soybeans, rice and flour and is currently negotiating with Perdue and Tyson to buy chicken in order to replenish supplies destroyed by Hurricane Michelle. Paid for with cash, the sale marks the first major commercial transaction between the United States and Cuba since the Kennedy Administration imposed the US trade embargo forty years ago.
Few people know that President Kennedy exempted food from the original US trade blockade. The Johnson Administration added foodstuffs to the embargo in February 1964 after the conservative senator from New York, Kenneth Keating, complained that Cuban efforts to purchase $2 million worth of lard--yes, lard--would have "a significant impact upon the foreign policy and international interests of the United States." According to declassified White House documents, National Security Adviser McGeorge Bundy's office asked the Department of Agriculture to provide an analysis of the "uses of lard" in hopes that some ominous strategic purpose could explain US actions. "Cuba could be expected to use 100 percent of any lard it gets for edible purposes," an aide reported back. "It would probably not be credible to take the line that we have decided to stop shipments of lard because it is not solely a food."
Since the end of the cold war, the embargo has proved a serious embarrassment for Washington. Instituted as part of a broad set of punitive measures designed to isolate the Castro regime, the trade sanctions have succeeded only in isolating the United States. Every year for the past decade the United Nations has voted overwhelmingly to condemn the US blockade; the last vote, on November 27, was a 167-to-3 defeat for the United States, with only the Marshall Islands and Israel supporting Washington and all fifteen members of the European Union voting against the United States. Our Western allies have been antagonized by the Helms-Burton bill, which tightened the embargo by penalizing friendly nations that freely trade with Cuba. Indeed, as Cuba has opened its economy to foreign investment and international trade, US corporations and agricultural interests have watched from the sidelines as competitors from Canada, Europe and Asia have built profitable business and commercial partnerships on the island.
US corporate interests, led by giant food conglomerates and rice, soy and wheat growers, have emerged as the principal lobbyists for lifting, at least partially, trade restrictions against Cuba. Once an executive order, the embargo was codified into law by the Helms-Burton bill. But legislators from agricultural states like Missouri, Iowa and Louisiana have progressively plowed into the political turf of the hard-line anti-Castro representatives from Florida; majorities in the Senate and House are moving closer to dispensing with this ineffective, counterproductive anachronism of the cold war.
Last year, on an amendment sponsored by Republican Representative George Nethercutt of Washington, Congress took the first substantive step to rescind the embargo, voting to lift the ban on commercial transactions with Cuba involving food and medicine. But a last-minute provision, inserted by the Republican leadership at the behest of a handful of Miami legislators, prohibited private financing of Cuban purchases. Angry at the punitive credit restrictions, the Castro government stated that it would "not spend a nickel" in the United States until the law was changed.
Cuba's deft decision to alter its rhetorical position and ask the Bush Administration to expedite this $30 million cold cash transaction in the wake of Hurricane Michelle may well contribute to reconsideration of those financing restrictions and indeed the embargo itself. Already, the Senate Agriculture Committee, chaired by Iowa Senator Tom Harkin, has voted to allow private bank and corporate financing. Analysts predict that US economic interests that want to continue such sales will eventually turn their attention to lifting restrictions on travel to the island, since American tourist dollars could provide Cuba with substantial currency to purchase US goods. "This creates momentum," according to Philip Peters, a Republican economic analyst at the Lexington Institute, who will lead a Congressional delegation to Cuba in January. "This re-energizes people who want to trade with Cuba."
"We have always been rather proud of the fact that 'we weren't trying to starve the Cuban people,'" an aide argued to McGeorge Bundy in an abortive effort to keep food from being added to the embargo. After thirty-seven years of trying, and failing, to do just that, restoring food sales has created the first major crack in the embargo. As the current of commerce begins to flow, that crack is likely to widen until the embargo collapses from its own outdated weight.
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