On November 7, 2015, Chris Hedges writes on AlterNet:
The release Thursday of the 5,544-page text of the Trans-Pacific Partnership—a trade and investment agreement involving 12 countries comprising nearly 40 percent of global output—confirms what even its most apocalyptic critics feared.
“The TPP, along with the WTO [World Trade Organization] and NAFTA [North American Free Trade Agreement], is the most brazen corporate power grab in American history,” Ralph Nader told me when I reached him by phone in Washington, D.C. “It allows corporations to bypass our three branches of government to impose enforceable sanctions by secret tribunals. These tribunals can declare our labor, consumer and environmental protections [to be] unlawful, non-tariff barriers subject to fines for noncompliance. The TPP establishes a transnational, autocratic system of enforceable governance in defiance of our domestic laws.”
The TPP is part of a triad of trade agreements that includes the Transatlantic Trade and Investment Partnership (TTIP) and the Trade in Services Agreement (TiSA). TiSA, by calling for the privatization of all public services, is a mortal threat to the viability of the U.S. Postal Service, public education and other government-run enterprises and utilities; together these operations make up 80 percent of the U.S. economy. The TTIP and TiSA are still in the negotiation phase. They will follow on the heels of the TPP and are likely to go before Congress in 2017.
These three agreements solidify the creeping corporate coup d’état along with the final evisceration of national sovereignty. Citizens will be forced to give up control of their destiny and will be stripped of the ability to protect themselves from corporate predators, safeguard the ecosystem and find redress and justice in our now anemic and often dysfunctional democratic institutions. The agreements—filled with jargon, convoluted technical, trade and financial terms, legalese, fine print and obtuse phrasing—can be summed up in two words: corporate enslavement.
The TPP removes legislative authority from Congress and the White House on a range of issues. Judicial power is often surrendered to three-person trade tribunals in which only corporations are permitted to sue. Workers, environmental and advocacy groups and labor unions are blocked from seeking redress in the proposed tribunals. The rights of corporations become sacrosanct. The rights of citizens are abolished.
The Sierra Club issued a statement after the release of the TPP text saying that the “deal is rife with polluter giveaways that would undermine decades of environmental progress, threaten our climate, and fail to adequately protect wildlife because big polluters helped write the deal.”
If there is no sustained popular uprising to prevent the passage of the TPP in Congress this spring we will be shackled by corporate power. Wages will decline. Working conditions will deteriorate. Unemployment will rise. Our few remaining rights will be revoked. The assault on the ecosystem will be accelerated. Banks and global speculation will be beyond oversight or control. Food safety standards and regulations will be jettisoned. Public services ranging from Medicare and Medicaid to the post office and public education will be abolished or dramatically slashed and taken over by for-profit corporations. Prices for basic commodities, including pharmaceuticals, will skyrocket. Social assistance programs will be drastically scaled back or terminated. And countries that have public health care systems, such as Canada and Australia, that are in the agreement will probably see their public health systems collapse under corporate assault. Corporations will be empowered to hold a wide variety of patents, including over plants and animals, turning basic necessities and the natural world into marketable products. And, just to make sure corporations extract every pound of flesh, any public law interpreted by corporations as impeding projected profit, even a law designed to protect the environment or consumers, will be subject to challenge in an entity called the investor-state dispute settlement (ISDS) section. The ISDS, bolstered and expanded under the TPP, will see corporations paid massive sums in compensation from offending governments for impeding their “right” to further swell their bank accounts. Corporate profit effectively will replace the common good.
Given the bankruptcy of our political class—including amoral politicians such as Hillary Clinton, who is denouncing the TPP during the presidential campaign but whose unwavering service to corporate capitalism assures her fealty to her corporate backers—the trade agreement has a good chance of becoming law. And because the Obama administration won fast-track authority, a tactic designed by the Nixon administration to subvert democratic debate, President Obama will be able to sign the agreement before it goes to Congress.
The TPP, because of fast track, bypasses the normal legislative process of public discussion and consideration by congressional committees. The House and the Senate, which have to vote on the TPP bill within 90 days of when it is sent to Congress, are prohibited by the fast-track provision from adding floor amendments or holding more than 20 hours of floor debate. Congress cannot raise concerns about the effects of the TPP on the environment. It can only vote yes or no. It is powerless to modify or change one word.
There will be a mass mobilization Nov. 14 through 18 in Washington to begin the push to block the TPP. Rising up to stop the TPP is a far, far better investment of our time and energy than engaging in the empty political theater that passes for a presidential campaign.
“The TPP creates a web of corporate laws that will dominate the global economy,” attorney Kevin Zeese of the group Popular Resistance, which has mounted a long fight against the trade agreement, told me from Baltimore by telephone. “It is a global corporate coup d’état. Corporations will become more powerful than countries. Corporations will force democratic systems to serve their interests. Civil courts around the world will be replaced with corporate courts or so-called trade tribunals. This is a massive expansion that builds on the worst of NAFTA rather than what Barack Obama promised, which was to get rid of the worst aspects of NAFTA.”
The agreement is the product of six years of work by global capitalists from banks, insurance companies, Goldman Sachs, Monsanto and other corporations.
“It was written by them [the corporations], it is for them and it will serve them,” Zeese said of the TPP. “It will hurt domestic businesses and small businesses. The buy-American provisions will disappear. Local communities will not be allowed to build buy-local campaigns. The thrust of the agreement is the privatization and commodification of everything. The agreement has built within it a deep antipathy to state-supported or state-owned enterprises. It gives away what is left of our democracy to the World Trade Organization.”
The economist David Rosnick, in a report on the TPP by the Center for Economic and Policy Research(CEPR), estimated that under the trade agreement only the top 10 percent of U.S. workers would see their wages increase. Rosnick wrote that the real wages of middle-income U.S. workers (from the 35th percentile to the 80th percentile) would decline under the TPP. NAFTA, contributing to a decline in manufacturing jobs (now only 9 percent of the economy), has forced workers into lower-paying service jobs and resulted in a decline in real wages of between 12 and 17 percent. The TPP would only accelerate this process, Rosnick concluded.
“This is a continuation of the global race to the bottom,” Dr. Margaret Flowers, also from Popular Resistance and a candidate for the U.S. Senate, said from Baltimore in a telephone conversation with me. “Corporations are free to move to countries that have the lowest labor standards. This drives down high labor standards here. It means a decimation of industries and unions. It means an accelerated race to the bottom, which we must rise up to stop.”
“In Malaysia one-third of tech workers are essentially slaves,” Zeese said. “In Vietnam the minimum wage is 35 cents an hour. Once these countries are part of the trade agreement U.S. workers are put in a very difficult position.”
Fifty-one percent of working Americans now make less than $30,000 a year, a new study by the Social Security Administration reported. Forty percent are making less than $20,000 a year. The federal government considers a family of four living on an income of less than $24,250 to be in poverty.
“Half of American workers earn essentially the poverty level,” Zeese said. “This agreement only accelerates this trend. I don’t see how American workers are going to cope.”
The assault on the American workforce by NAFTA—which was established under the Clinton administration in 1994 and which at the time promised creation of 200,000 net jobs a year in the United States—has been devastating. NAFTA has led to a $181 billion trade deficit with Mexico and Canada and the loss of at least 1 million U.S. jobs, according to a report by Public Citizen. The flooding of the Mexican market with cheap corn by U.S. agro-businesses drove down the price of Mexican corn and saw 1 million to 3 million poor Mexican farmers go bankrupt and lose their small farms. Many of them crossed the border into the United States in a desperate effort to find work.
“Obama has misled the public throughout this process,” Dr. Flowers said. “He claimed that environmental groups were supportive of the agreement because it provided environmental protections, and this has now been proven false. He told us that it would create 650,000 jobs, and this has now been proven false. He calls this a 21st century trade agreement, but it actually rolls back progress made in Bush-era trade agreements. The most recent model of a 21st century trade agreement is the Korean free trade agreement. That was supposed to create 140,000 U.S. jobs. But what we saw within a couple years was a loss of about 70,000 jobs and a larger trade deficit with Korea. This agreement [the TPP] is sold to us with the same deceits that were used to sell us NAFTA and other trade agreements.”
The agreement, in essence, becomes global law. Any agreements over carbon emissions by countries made through the United Nations are effectively rendered null and void by the TPP.
“Trade agreements are binding,” Flowers said. “They supersede any of the nonbinding agreements made by the United Nations Climate Change Conference that might come out of Paris.”
There is more than enough evidence from past trade agreements to indicate where the TPP—often called “NAFTA on steroids”—will lead. It is part of the inexorable march by corporations to wrest from us the ability to use government to defend the public and to build social and political organizations that promote the common good. Our corporate masters seek to turn the natural world and human beings into malleable commodities that will be used and exploited until exhaustion or collapse. Trade agreements are the tools being used to achieve this subjugation. The only response left is open, sustained and defiant popular revolt.
http://www.alternet.org/economy/chris-hedges-tpp-most-brazen-corporate-power-grab-american-history
http://www.esquire.com/news-politics/politics/news/a39636/tpp-giveaway-corporations/
Not surprisingly, it appears that the agreement will promote the interests of giant, multinational corporations over the interests of labor, environmental, consumer, human rights, or other stakeholders in democracy, AND FURTHER CONCENTRATE OWNERSHIP OF THE NON-HUMAN PRODUCTIVE CAPITAL MEANS OF PRODUCTION!
The REAL STORY is a story about the collusion among a globally wealthy ownership class to further concentrate private sector ownership in ALL FUTURE wealth-creating, income-generating productive capital asset creation on a global scale. A sorta FREE TRADE ON STEROIDS!
This is a battle between two property system choices: economies such as China in which the productive capital assets are primarily state-owned or state-sponsored communism or socialism and economies such as the United States, Great Britain, Canada, Mexico, Australia, Japan, etc in which the productive capital assets are primarily privately owned, although also largely concentrated among less than 10 percent of the population so as to require massive earnings redistribution, and thus welfare support open and disguised.
But there is another alternative, a balanced Just Third Way (http://www.cesj.org/thirdway/thirdway-intro.htm), based on an understanding of binary economics, by which over time the economy’s productive capital assets will become almost entirely individually owned by 100 percent of the citizens. Such an economy would produce efficiencies of production fully using ever-advancing technologies of production that will fuel a greater growth of the world economies by eliminating the problematic condition of the exponential disassociation of production and consumption through ordinary citizens gaining access to FUTURE productive capital ownership to improve their economic well-being, without taking anything away from those who already own.
It is critical that private property ownership in productive capital be extended to ALL people because of the increasing power of productive capital to produce more and more of the wealth or products and services needed and wanted by society. Because productive capital––the non-human factor of production––is an independent productive power separate from human labor power, and represents an increasing role in creating wealth, the question to be addressed is: Who has the right to acquire ownership of productive capital?
While people have private property rights in their own labor, due to tectonic shifts in the technologies of production it is not enough for individual survival if people cannot get jobs, or if jobs, in reality are no longer doing a substantial part of the wealth creation. As exponential technology shifts destroy jobs and devalue the worth of labor, people need not only private property rights in their own labor, but also private property rights in the productive capital assets that are doing ever more of the work.
We as a nation, and other nations, can no longer limit people to personal rights while restricting ownership acquisition rights in wealth-creating, income-producing productive capital assets to those already well-capitalized. To be a just society, all individuals MUST have effective property rights not only in their labor and personal use possessions but also in FUTURE productive capital asset creation. Because of this imbalance, the result has been that the consumer populous is not able to get the money to buy the products and services produced increasingly by the non-human factor––physical productive capital––as a result of substituting machines for people. And yet you can’t have mass production without mass human consumption.
Broadened, private sector individual ownership of FUTURE productive capital assets as a societal objective is the ONLY individual private property-rights approach that will provide solutions to income inequality, unemployment, underemployment and anemic GDP growth––all of which is rooted in the tectonic shift in the technologies of production and its concentrated ownership. This reality, as a practical matter, is destroying jobs and devaluing the worth of labor, widening the income gap between the rich and poor and struggling (each resentful and suspicious of the other), and resulting in our inability to achieve double-digit GDP growth in the United States and other countries.
To solve this challenge, several policies must be implemented in the United States:
1. Tax reform is needed to incentivize broadened individual ownership of corporations by their employees. As an incentive, provide a tax deduction to corporations for dividend payouts, which would tighten-up the right of each owner to his or her full share of profits, a basic and historic right of private property. It would eliminate double and triple taxes on corporate profits, shifting the burden of taxation to personal incomes after exempting initial incomes that would allow low and middle class citizens not to pay taxes on incomes needed to cover basic living expenses. It will also encourage corporations to finance their growth through the issuance of new full voting, full dividend payout shares for financing their productive capital growth needs through Employee Stock Ownership Plans (ESOPs) and Capital Homestead Accounts (CHAs). Politically we need to insist that politicians lift barriers to the democratization of future ownership opportunity based on sound principle, rather than redistributive taxation.
2. As increasingly more workers acquire ownership stakes in FUTURE corporate productive capital assets using ESOP financing mechanisms, workers will build second incomes to support their living expenses, which in turn means they will be better “customers with money” to support demand for the products and services that the economy is capable of producing. By reason of the higher marginal spending rate on the part of workers second incomes, more of the additional income earned by the new capitalists (who have many unsatisfied consumer needs and wants) will be spent on consumption than if the income had been earned by those capitalists who now have concentrated the ownership of productive capital exclusively, and who have few, if any, consumer needs and wants. Such broadened incremental consumption will fuel a demand for more consumer products and services, which in turn will provide incentive for greater productive capital investment.
3. For all Americans, the Federal Reverse needs to create an asset-backed currency that can enable every man, woman and child to establish a Capital Homestead Account or “CHA” (a super-IRA or asset tax-shelter for citizens) at their local bank to acquire a growing dividend-bearing stock portfolio to supplement their incomes from work and all other sources of income. The CHA would process an equal allocation of productive credit to every citizen exclusively for purchasing full-dividend payout shares in companies needing funds for growing the economy and private sector jobs for local, national and global markets. The shares would be purchased using essentially interest-free credit wholly backed by projected “future savings” in the form of new productive capital assets as well as the future marketable products and services produced by the newly added technology, renewable energy systems, plant, rentable space and infrastructure added to the economy. Risk of default on each stock acquisition loan would be covered by private sector capital credit risk insurance and, if necessary, government reinsurance, but would not require citizens to reduce their funds for consumption to purchase shares.
4. Reform the tax code such that the tax rate would be a single rate for all incomes from all sources above an established personal exemption level (for example, an exemption of $100,000 for a family of four to meet their ordinary living needs) so that the budget could be balanced automatically and even allow the government to pay off the growing unsustainable long-term debt. The poor would pay the first dollar over their exemption levels as would the stock fund operator and others now earning billions of dollars from capital gains, dividends, rents and other property incomes.
5. As a substitute for inheritance and gift taxes, a transfer tax should be imposed on the recipients whose holdings exceeded $1 million, thus encouraging the super-rich to spread out their monopoly-sized estates to all members of their family, friends, servants and workers who helped create their fortunes, teachers, health workers, police, other public servants, military veterans, artists, the poor and the disabled.
6. Eliminate all tax loopholes and subsidies.
These polices would result in rapid and substantial economic growth with the GDP rate in double digits. As a result of the stimulus effect, more REAL, decent paying job opportunities and further technological advancement would be created while simultaneously broadening private, individual ownership of FUTURE wealth-creating, income-generating productive capital assets, which would support second and primary incomes for ALL Americans.
In this new FUTURE economy, a citizen would start to benefit financially at the time he or she enters the economic world as a labor worker, to become increasingly a capital owner, whose productive capital assets contribute as a non-human worker earning a second income, and at some point to retire as a labor worker and continue to participate in production and to earn income as a capital owner until the day you die.
As we ALL contribute to the building of a FUTURE economy that can support general affluence for EVERY man, woman and child, at some point as the technologies of production further advance there will be far less need for human workers and productive capital asset ownership will become the primary income source for most people. As general affluence becomes more widespread people will be free and economically secure to pursue their creative desires and pleasures, further contributing to the cultural and societal development of the country.
Support the Agenda of The Just Third Way Movement at http://foreconomicjustice.org/?p=5797
Support Monetary Justice at http://capitalhomestead.org/page/monetary-justice
Support the Capital Homestead Act at http://www.cesj.org/homestead/index.htm and http://www.cesj.org/homestead/summary-cha.htm. See the full Act at http://cesj.org/homestead/strategies/national/cha-full.pdf
See “Financing Economic Growth With ‘FUTURE SAVINGS’: Solutions To Protect America From Economic Decline” at NationOfChange.org http://www.nationofchange.org/financing-future-economic-growth-future-savings-solutions-protect-america-economic-decline-137450624 and “The Income Solution To Slow Private Sector Job Growth” at http://www.nationofchange.org/income-solution-slow-private-sector-job-growth-1378041490.
