US foreign policy: A bipartisan embrace of militarism

There is a lot of talk lately about the federal budget, with Democrats and Republicans arguing over whether to raise the debt ceiling and allow the government to borrow enough money to fund already approved agency budgets and programs. But you know what they never argue about—financing the military.

Showing the love 

In December 2022, President Joe Biden signed into law the National Defense Authorization Act, approving “national defense” spending of $858 billion for fiscal year 2023. The act covers Pentagon spending as well as work on nuclear warheads at the Department of Energy.  That total represents a 4.3 percent increase over the previous year’s authorization, the second biggest increase in inflation-adjusted terms since World War II.  If spending on other military-security related programs were added, such as homeland security, veterans’ care, and Ukraine related military aid, the total would exceed $1.4 trillion.   

The National Defense Authorization Act was overwhelmingly approved by both houses of Congress. The House of Representatives passed it 350 to 80.  The Senate 83 to 11.  In fact, Congress actually voted to give the military $45 billion more than what Biden and the Pentagon had originally requested.  Now, that is showing the love!

In March, the military proposed a national defense budget for fiscal year 2024 of $886 billion.  We shall see how much that figure will grow once Congress takes it up.

Social Security: The attacks keep coming but the system remains strong

President Biden is winning praise for his State of the Union defense of social security.  But while he correctly called out Republicans for their machinations, it was not so long ago that Democratic Party leaders—for example, Bill Clinton and Barack Obama—appeared willing to support plans for weakening the program.  Thus, we need to be vigilant and always prepared to defend the program, especially since, as the economist Paul Krugman commented:

I’ve seen numerous declarations from mainstream media that of course Medicare and Social Security can’t be sustained in their present form. And not just in the opinion pages: There’s been at least some reversion to the early 2010s practice of including anti-social-insurance editorializing in what are supposed to be straight news reports, with highly disputable claims about these programs’ futures presented as simple facts.

Don’t let the critics fool you. Our Social Security system remains sound.  Moreover, there are simple steps we can take to expand its benefits.

U.S. Economic Planning in the Second World War and the Planetary Crisis

The February 2023 issue of Monthly Review includes an article of mine, “U.S. Economic Planning in the Second World War and the Planetary Crisis,” which is a revised version of a past blog post.  

The following is from the article’s introduction:

Not surprisingly, the consensus from those studying the wartime conversion experience is that a rapid and successful transformation requires aggressive state planning and direction of economic activity. This is indeed an important lesson for our movement to learn. But there is another lesson to be learned from that period, one that deserves more attention than it currently receives. It is that in a capitalist economy, capital’s ownership position greatly enhances its ability to mold state structures and their policies in ways favorable to its interests and to the detriment of workers. In other words, the planning process is a contested terrain, and one not usually favorable to working people.

I will show that, during the war years, corporate leaders were able to rebuff Congress of Industrial Organization (CIO) planning proposals and successfully marginalize the participation of unions in the mobilization agencies that were formed, ensuring that labor would be forced into a defensive and ever weaker position relative to capital as the war progressed. Thus, if our aim is not simply a transformation to a somewhat less carbon consuming economy, but a complete and just transformation, we must prepare ourselves, and the movement that we hope to build, for an ongoing and complex struggle to overcome capital’s structural advantages. It is my hope that this article, which focuses on the class dynamics shaping the Second World War mobilization process, can help that preparation. The history it describes offers a useful primer on how the other side conducts its class war.

Recession alert: we need a new unemployment insurance system

With the Federal Reserve pushing up interest rates, we appear headed for a new recession.  Sadly, our unemployment insurance system remains broken: too few unemployed receive benefits and the benefits are far too low.  As a result, the next recession, when it comes, will again bring unnecessary suffering to millions of workers and their families.

It doesn’t have to be this way. Federal action during the recent pandemic crisis shows how our unemployment system can be dramatically improved. The problem is that many business and political leaders are content with the system as it is now.  That means it is up to us to start agitating for reform, and the sooner the better.

System change, class war, and the WW2 economic conversion experience

The climate crisis has driven our planet into uncharted territory. We are close to breaching critical environmental thresholds, setting in motion destabilizing changes to our global climate system that could well make the earth unlivable for humans and countless other species.  We must decrease carbon emissions as rapidly as possible and there is no way to do that without significantly changing the operation and aims of our economy.  But not just any change will do.  It must be one that also promotes worker empowerment and solidarity, community well-being and security, and democracy.

It’s past time for a $15 federal minimum wage

President Biden’s 2022 State of the Union Address included a call for a $15 federal minimum wage.  According to an Economic Policy Institute study, a phased increase to a $15 federal minimum wage by 2025 would raise the earnings of 32 million workers—21 percent of the workforce, no small thing. 

The current federal minimum wage is $7.25.  The federal minimum wage was established in 1938, as part of the Fair Labor Standards Act.  Congress has voted to raise it 9 times since then, the last time in 2007.  That last vote included a mandated three step increase that brought it to its current level in July 2009. 

It has been 13 years since the last increase in the federal minimum wage, the longest period since its establishment without an increase.  Taking inflation into account, workers paid the federal minimum wage in 2021 earned 21 percent less than what their counterparts earned in 2009, and prices keep rising.  Outrageously, this eroding federal minimum wage continues to set the wage floor in 20 states. Where is the justice in that?

Making the Green New Deal real: lessons from the World War II conversion experience

The Green New Deal has become a rallying cry for activists seeking to build a mass movement capable of addressing our ever worsening, and increasingly interrelated, climate and social crises.  Building such a movement is no simple task, but I believe that our organizing efforts can greatly benefit from a careful study of the rapid transformation of the US economy from civilian to military production during World War II. 

In two recent publications, with links below, I describe and evaluate the planning process responsible for the wartime transformation and offer my thoughts on some of the key lessons to be learned. In what follows I highlight some of the reasons why I believe Green New Deal advocates would benefit from careful study of the wartime experience.

Once again austerity proponents tell it like it isn’t

There appears to be growing consensus among economists and policy makers that inflation is now the main threat to the US economy and the Federal Reserve Board needs to start ratcheting up interest rates to slow down economic activity.  While these so-called inflation-hawks are quick to highlight the cost of higher prices, they rarely, if ever, mention the costs associated with the higher interest rate policy they recommend, costs that include higher unemployment and lower wages for working people. 

The call for tightening monetary policy is often buttressed by claims that labor markets have now tightened to such an extent that continued expansion could set off a wage-price spiral.  However, the rapid decline in the unemployment rate to historically low levels, a development often cited in support of this call for austerity, is far from the best indicator of labor market conditions.  In fact, even leaving aside issues of job quality, the US employment situation, as we see below, remains problematic.  In short: the US economy continues to operate in ways that fall far short of what workers need. 

US workers in motion: an assessment of labor’s gains

The news has recently highlighted labor’s growing activism, publishing numerous stories about high quit rates, threatened and actual strikes, and wage gains.  While these stories do capture the anger and determination of workers who have suffered through the pandemic with limited compensation for dramatically increased workloads while watching profits soar, they also paint an overly optimistic picture of the gains being made. And now, the media seems mesmerized by the threat of inflation, with those advocating austerity increasingly given prominent play.  The reality is that the labor movement has a long struggle ahead and it should not be distracted by unwarranted fears of inflation.

Pandemic economic woes continue, but so do deep structural problems, especially the long-term growth in the share of low wage jobs

Many are understandably alarmed about what the September 4^th termination of several special federal pandemic unemployment insurance programs will mean for millions of workers.  Twenty-five states ended their programs months earlier, with government and business leaders claiming that their termination would spur employment and economic activity.  However, several studies have disproved their claims.

One study, based on the experience of 19 of these states, found that for every 8 workers that lost benefits, only one found a new job.  Consumer spending in those states fell by $2 billion, with every lost $1 of benefits leading to a fall in spending of 52 cents.   It is hard to see how anything good can come from the federal government’s willingness to allow these programs to expire nationwide.