It seems certain that the political economy textbooks of the future will include a chapter on the experience of Greece in 2015.

On July 5, 2015, the people of Greece overwhelmingly voted “NO” to the austerity ultimatum demanded by what is colloquially being called the Troika, the three institutions that have the power to shape Greece’s future: the European Commission, the International Monetary Fund, and the European Central Bank.

The people of Greece have stood up for the rights of working people everywhere.

Background

Greece has experienced six consecutive years of recession and the social costs have been enormous.  The following charts provide only the barest glimpse into the human suffering:

Infographics / Unemployment
Infographics / Unemployment
Infographics / Social Impact
Infographics / Social Impact
Infographics / Poverty
Infographics / Poverty

While the Troika has been eager to blame this outcome on the bungling and dishonesty of successive Greek governments and even the Greek people, the fact is that it is Troika policies that are primarily responsible. In broad brush, Greece grew rapidly over the 2000s in large part thanks to government borrowing, especially from French and German banks.  When the global financial crisis hit in late 2008, Greece was quickly thrown into recession and the Greek government found its revenue in steep decline and its ability to borrow sharply limited. By 2010, without its own national currency, it faced bankruptcy.

Enter the Troika. In 2010, they penned the first bailout agreement with the Greek government. The Greek government received new loans in exchange for its acceptance of austerity policies and monitoring by the IMF. Most of the new money went back out of the country, largely to its bank creditors. And the massive cuts in public spending deepened the country’s recession.

By 2011 it had become clear that the Troika’s policies were self-defeating. The deeper recession further reduced tax revenues, making it harder for the Greek government to pay its debts. Thus in 2012 the Troika again extended loans to the Greek government as part of a second bailout which included . . . wait for it . . . yet new austerity measures.

Not surprisingly, the outcome was more of the same. By then, French and German banks were off the hook. It was now the European governments and the International Monetary Fund that worried about repayment. And the Greek economy continued its downward ascent.

Significantly, in 2012, IMF staff acknowledged that the its support for austerity in 2010 was a mistake. Simply put, if you ask a government to cut spending during a period of recession you will only worsen the recession. And a country in recession will not be able to pay its debts. It was a pretty clear and obvious conclusion.

But, significantly, this acknowledgement did little to change Troika policies toward Greece.

By the end of 2014, the Greek people were fed up. Their government had done most of what was demanded of it and yet the economy continued to worsen and the country was deeper in debt than it had been at the start of the bailouts. And, once again, the Greek government was unable to make its debt payments without access to new loans. So, in January 2015 they elected a left wing, radical party known as Syriza because of the party’s commitment to negotiate a new understanding with the Troika, one that would enable the country to return to growth, which meant an end to austerity and debt relief.

Syriza entered the negotiations hopeful that the lessons of the past had been learned. But no, the Troika refused all additional financial support unless Greece agreed to implement yet another round of austerity. What started out as negotiations quickly turned into a one way scolding. The Troika continued to demand significant cuts in public spending to boost Greek government revenue for debt repayment. Greece eventually won a compromise that limited the size of the primary surplus required, but when they proposed achieving it by tax increases on corporations and the wealthy rather than spending cuts, they were rebuffed, principally by the IMF.

The Troika demanded cuts in pensions, again to reduce government spending. When Greece countered with an offer to boost contributions rather than slash the benefits going to those at the bottom of the income distribution, they were again rebuffed. On and on it went. Even the previous head of the IMF penned an intervention warning that the IMF was in danger of repeating its past mistakes, but to no avail.

Finally on June 25, the Troika made its final offer. It would provide additional funds to Greece, enough to enable it to make its debt payments over the next five months in exchange for more austerity.  However, as the Greek government recognized, this would just be “kicking the can down the road.” In five months the country would again be forced to ask for more money and accept more austerity. No wonder the Greek Prime Minister announced he was done, that he would take this offer to the Greek people with a recommendation of a “NO” vote.

The Referendum

Almost immediately after the Greek government announced its plans for a referendum, the leaders of the Troika intervened in the Greek debate. For example, as the New York Times reported:

By long-established diplomatic tradition, leaders and international institutions do not meddle in the domestic politics of other countries. But under cover of a referendum in which the rest of Europe has a clear stake, European leaders who have found [Greece Prime Minister] Tsipras difficult to deal with have been clear about the outcome they prefer.

Many are openly opposing him on the referendum, which could very possibly make way for a new government and a new approach to finding a compromise. The situation in Greece, analysts said, is not the first time that European politics have crossed borders, but it is the most open instance and the one with the greatest potential effect so far on European unity…

Martin Schulz, a German who is president of the European Parliament, offered at one point to travel to Greece to campaign for the “yes” forces, those in favor of taking a deal along the lines offered by the
creditors.

On Thursday, Mr. Schulz was on television making clear that he had little regard for Mr. Tsipras and his government. “We will help the Greek people but most certainly not the government,” he said.

European leaders actively worked to distort the terms of the referendum. Greeks were voting on whether to accept or reject Troika austerity policies yet the Troika leaders falsely claimed the vote was on whether Greece should remain in the Eurozone. In fact, there is no mechanism for kicking a country out of the Eurozone and the Greek government was always clear that it was not seeking to leave the zone.

Having whipped up popular fears of an end to the euro, some Greeks began talking their money out of the banks. On June 28, the European Central Bank then took the aggressive step of limiting its support to the Greek financial system.

This was a very significant and highly political step. Eurozone governments do not print their own money or control their own monetary systems. The European Central Bank is in charge of regional monetary policy and is duty bound to support the stability of the region’s financial system. By limiting its support for Greek banks it forced the Greek government to limit withdrawals which only worsened economic conditions and heightened fears about an economic collapse. This was, as reported by the New York Times, a clear attempt to influence the vote, one might even say an act of economic terrorism:    

Some experts say the timing of the European Central Bank action in capping emergency funding to Greek banks this week appeared to be part of a campaign to influence voters.

“I don’t see how anybody can believe that the timing of this was coincidence,” said Mark Weisbrot, an economist and a co-director of the Center for Economic and Policy Research in Washington. “When you restrict the flow of cash enough to close the banks during the week of a referendum, this is a very deliberate move to scare people.”

Then on July 2, three days before the referendum, an IMF staff report on Greece was made public. Echos of 2010, the report made clear that Troika austerity demands were counterproductive. Greece needed massive new loans and debt forgiveness. The Bruegel Institute, a European think tank, offered a summary and analysis of the report, concluding that “the creditors negotiated with Greece in bad faith” and used “indefensible economic logic.”

The leaders of the Troika were insisting on policies that the IMF’s own staff viewed as misguided.  Moreover, as noted above, European leaders desperately but unsuccessfully tried to kill the report. Only one conclusion is possible: the negotiations were a sham.

The Troika’s goals were political: they wanted to destroy the leftist, radical Syriza because it represented a threat to a status quo in which working people suffer to generate profits for the region’s leading corporations. It apparently didn’t matter to them that what they were demanding was disastrous for the people of Greece. In fact, quite the opposite was likely true: punishing Greece was part of their plan to ensure that voters would reject insurgent movements in other countries, especially Spain.

The Vote

And despite, or perhaps because of all of the interventions and threats highlighted above, the Greek people stood firm. As the headlines of a Bloomberg news story proclaimed: “Varoufakis: Greeks Said ‘No’ to Five Years of Hypocrisy.”

The Greek vote was a huge victory for working people everywhere.

Now, we need to learn the lessons of this experience. Among the most important are: those who speak for dominant capitalist interests are not to be trusted. Our strength is in organization and collective action. Our efforts can shape alternatives.

Cross-posted at Reports from the Economic Front.

Martin Hart-Landsberg is a professor of economics at Lewis and Clark College. You can follow him at Reports from the Economic Front.

Every year the National Priorities Project helps Americans understand how the money they paid in federal taxes was spent. Here’s the data for 2014:

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Since the 1940s, individual Americans have paid 40-50% of the federal government’s bills through taxes on income and investment. Another chunk (about 1/3rd today) is paid in the form of payroll taxes for things like social security and medicare. This year, corporate taxes made up only about 11% of the federal government’s revenue; this is way down from a historic high of almost 40% in 1943.

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Visit the National Priorities Project here and find out where state tax dollars went, how each state benefits from federal tax dollars, and who gets the biggest tax breaks. Or fiddle around with how you would organize American priorities.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

Within the last decade, the grain quinoa has emerged as an alleged “super food” in western dietary practices. Health food stores and upscale grocery chains have aisles dedicated to varieties of quinoa, packaged under many different brand labels, touting it to be a nutritional goldmine. A simple Google search of the word returns pages of results with buzzwords like “healthiest,” “organic,” and “wholesome.” Vegan and health-enthusiast subcultures swear by this expensive food product, and the Food and Agricultural Organization (FAO) even declared the year 2013 International Year of the Quinoa, owing to the grain’s popularity.

The journey of the grain — as it makes it to the gourmet kitchen at upscale restaurants in countries like the United States — however, is often overlooked in mainstream discourse. It often begins in the Yellow Andes region of Bolivia, where the farmers that grow this crop have depended on it as almost a sole nutritional source for decades, if not centuries. The boom in western markets, with exceedingly high demands for this crop has caused it to transition from a traditional food crop to a major cash crop.

While critical global organizations like the FAO have been portraying this as positive, they tend to discount the challenge of participating in a demanding global market. Within-country inequality, skewed export/import dynamics, and capitalist trade practices that remain in the favor of the powerful player in these dynamics – the core consumer – cause new and difficult problems for Bolivian farmers, like not being able to afford to buy the food they have traditionally depended upon.

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Meanwhile, growing such large amounts of quinoa has been degrading the Andean soil: even the FAO outlines concerns for biodiversity, while otherwise touting the phenomenon.

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While efforts have been put in place by farmer unions, cooperatives and development initiatives to mitigate some negative effects on the primary producers of quinoa, they have not been enough to protect the food security of these Andean farmers. Increased consumer consciousness is therefore essential in ensuring that these farmers don’t continue to suffer because of Western dietary fads.

Cross-posted at Sociology Lens.

Aarushi Bhandari is a doctoral student at Stony Brook University interested in globalization and the impact of neoliberal policies on the developing world. She wants to study global food security within a global neoliberal framework and the world systems perspective.

14By Tom Gauld.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

This is a map of the countries Europe colonized, controlled, or influenced between 1500 and 1960. The purple is Europe. The orange countries are ones never under European rule. Almost the entire rest of the map — all the green, blue, and yellow — were dominated by Europe to some extent. “Influenced” is pretty much a euphemism and often not all that different than outright domination.

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Max Fisher, writing at Vox, summarizes:

There are only four countries that escaped European colonialism completely. Japan and Korea successfully staved off European domination, in part due to their strength and diplomacy, their isolationist policies, and perhaps their distance. Thailand was spared when the British and French Empires decided to let it remained independent as a buffer between British-controlled Burma and French Indochina…

Then there is Liberia, which European powers spared because the United States backed the Liberian state, which was established in the early 1800s by freed American slaves who had decided to move to Africa.

More details and discussion at here.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

President Obama continues to press for a form of fast track approval to ensure Congressional support for two major trade agreements: the Trans-Pacific Trade Partnership Agreement (with 11 other countries) and the Trans-Atlantic Trade and Investment Partnership Agreement (with the entire European Union).

Both agreements, based on leaks of current negotiating positions, have been structured to promote business interests and will have negative consequences for working people relative to their wages and working conditions, access to public services, and the environment.

These agreements are being negotiated in secret: even members of Congress are locked out of the negotiating process.  The only people that know what is happening and are in a position to shape the end result are the U.S. trade representative and a select group of 566 advisory group members selected by the U.S. trade representative.

Thanks to a recent Washington Post post we can see who these advisory group members are and, by extension, whose interests are served by the negotiations.  According to the blog post, 480 or 85% of the members are from either industry or trade association groups.  The remaining 15% are academics or members of unions, civil society organizations, or government committees.  The blog post includes actual names and affiliations.

Here we can see the general picture of corporate domination of U.S. trade policy as illustrated by the Washington Post.
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In short, corporate interests are well placed to directly shape our trade policies.  No wonder drafts of these treaties include chapters that, among other things, lengthen patent protection for drugs, promote capital mobility and privatization of public enterprises, and allow corporations to sue governments in supra-national secret tribunals if public policies reduce expected profits.

Cross-posted at Reports from the Economic Front and Pacific Standard.

Martin Hart-Landsberg is a professor of economics at Lewis and Clark College. You can follow him at Reports from the Economic Front.

“No. We’re Italian. We don’t Irish dance,” said Kristi Corcione’s mother in 1973. The proscription wouldn’t last a generation. Today her daughter trains for the World Irish Dance Championships

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Irish dance has left Ireland and the ethnic communities in which it used to be quietly practiced.

Irish dancing schools have sprung up in Israel, Japan, Norway, Romania, Russia and many other countries not known for their Irish populations. Competitions… can now be found in Hong Kong, Prague and St. Petersburg, among other far-flung cities. More than 5,000 competitors from 20 countries are expected in April at this year’s World Championships in London.

At the New York Times, Siobhan Burke gives the credit to Riverdance, a phenom that “exporting [Irish dance] to an international audience of more than 24 million.”

The spread of Irish dance is a great example of the social construction and evolution of our invented concepts of race and ethnicity.

When it was whites who made up the majority of U.S. immigrants, it really mattered if you were Irish, Italian, or some other white ethnicity. The Irish, in particular, were denigrated and dehumanized. If one wasn’t Irish, it certainly wasn’t a group that most people would want to associate themselves with.

Over generations, though, and as new immigrant groups came in and were contrasted to Europeans, the distinctions between white ethnics began to fade. Eventually, ethnicity became optional for white people. They could claim an ethnicity, or several, of their choice; others would accept whatever they said without argument; or they could say they were just American.

Once the distinctions no longer mattered and the stigma of being Irish had faded, then Irish dance could be something anyone did and others would want to do. And, so, now anyone does. The three-time winner of the All-Ireland Dancing Championship in Dublin is a biracial, black, Jewish kid from Ohio.

Today, the big Irish dance production is “Heartbeat of Home,” a show that Burke describes as a “multicultural fusion” that delivers “plenty of solid Irish dance steps.” Irish dance is evolving, borrowing and melding with other cultural traditions — and it increasingly belongs to everyone — in the great drama of ethnic and racial invention and re-invention.

7Thanks so much to @Mandahl, a proud grandmother of two world class Irish dancers, for suggesting I write about this!

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

NPR put together a nice graphic showing the most common job in every state every two years from 1978 to 2014. It’s a fascinating ride from secretaries, farmers, and machine operators to truck drivers, truck drivers, and truck drivers. Click to enlarge.

1978:18

2014:17


Quoctrung Bui explains some of the trends:

  • Truck drivers came to “dominate the map” partly because the job can’t be outsources or automated (yet).
  • Much of the work of secretaries was replaced by computers.
  • Manufacturing jobs have been sent overseas (but you knew that).
  • And advances in farming technology means that we can grow more and more food with fewer and fewer people.

She also points out — with a “heh” — that the most common job in Washington D.C. is lawyer. But she didn’t mention that in 1996 it was janitors. There’s gotta be a politician joke in there, too.
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Here are some of the changes I found interesting, with mostly uninformed commentary. The three boxes represent 1978, 1996, and 2014.

Methinks reality television is not telling me the truth about Alaska.

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Well, we know what Nevada‘s for. Except I guess people used to go there to do stuff and now they just go there to buy stuff.333

South Dakota and North Dakota, holding strong.444New York, the only state on the list that’s top job is nursing. Take that, Florida!

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You go, Delaware.222

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.