Social Conditions Deteriorate in the United States

The necessity for the independent politics of the working class and an
anti-war pro-social direction for the economy

In a series of articles, the mass media have presented lurid exposures of inhumane living conditions in the United States. Social conditions for many in cities in California, the Northwest, New York and elsewhere are shown to have become untenable. Thousands of people in city after city live outside on sidewalks and parks with little access to sanitation and other public services. The housing situation for workers in Silicon Valley is said to be so desperate that the Apple Corporation has decided to invest $2.5 billion to build rental housing for its workers and others on land it owns in San Francisco.

The New York Times has detailed serious social problems in health care, education, and housing and the corrupting influence of big money in the cartel party system of the Democratic and Republican Parties. The items suggest inequality of social wealth between the rich and poor is the root problem and not a symptom of a deeper issue, and that redistribution of accumulated wealth is necessary if social problems are to be solved.

Other articles refute this approach and declare the "American Dream" to become rich and to "fend for yourself" have made the nation dominant in world affairs, while state redistribution of wealth is contrary to the "American way." The dispute is often presented as a conflict of outlooks and policy objectives between the two established cartel parties and within the Democratic Party itself.

The articles on inequality of wealth, amongst other sources, rely on recent research from economists Emmanuel Saez and Gabriel Zucman,found in their book, The Triumph of Injustice: How the Rich Dodge Taxes and How to Make Them Pay. They argue the concentration of wealth in a few hands has become so great as to be untenable, resulting in unresolved social problems that only increased taxes on the rich can resolve.

The data reveals that 400 rich U.S. households currently own more social wealth than the entire population of those of African descent, around 48 million, plus a quarter of those of Latin American and Hispanic descent, another 14 million people. The richest top 0.1 per cent has seen its grasp of U.S. social wealth nearly triple from seven per cent to 20 per cent between the late 1970s and 2016, while the bottom 90 per cent has seen its share of wealth decline from 35 per cent to 25 per cent in that same period.

The richest 130,000 families in the U.S. now hold nearly as much social wealth as the bottom 117 million families combined. The top one per cent own 42 per cent of the country's entire social wealth. The articles do not break this down as to what constitutes wealth other than general references to stocks, bonds, ownership of companies and property, houses, cars, disposable income etc.

From this mass of accumulated wealth and investments, ownership of property and companies and from positions as executives and directors, the richest individuals constituting one per cent of the total population realize annual incomes amounting to 20 per cent of the total reported income in the United States. In contrast, the reported income for the vast majority of working people comes not from investments and ownership of property but from selling their capacity to work to those who own and control the socialized economy.

According to the tax research of Saez and Zucman, the families in the top 0.1 per cent are projected to owe 3.2 per cent of their total wealth and income in federal, state, and local taxes for the year 2019, while the bottom 99 per cent are projected to owe 7.2 per cent of their accumulated wealth and income.

The data and subsequent analysis concentrate on the possession and distribution of social wealth in money form. From this, the analysis arrives at the conclusion that increased taxes on the rich will solve the problems facing the people. But is a lack of money the cause of the dreadful social conditions and problems?

Saez and Zucman point to a period in U.S. history from the beginning of WWII into the 1970s when the rich paid much higher taxes and their share of wealth was one-third relative to what they control of the total today. However, the situation during the earlier period did not result in the realization of the right of all to health care, education, housing, proper sanitation, and security in retirement and when injured, sick or disabled. The increased funds in government hands relative to the total social wealth during and after World War II led to militarization of the U.S. economy. The U.S. ruling elite did not use the increased funds to guarantee the rights of the people with extensive social programs and free public services but to establish thousands of military bases within the U.S. and around the world, wage continuous wars under the imperialist banner of "containment of communism," and build its war arsenal of modern weaponry, including naval armadas, warplanes, tanks, artillery, assault rifles and vast numbers of nuclear bombs and missiles.

The U.S. state does not have a lack of money. It has an annual war budget of around a trillion dollars plus billions more for "homeland security," countless internal and external spy and police agencies, money for "diplomatic" interference in the sovereign affairs of others, pay-the-rich schemes for big business, and money to pay for pro-war imperialist propaganda, armed mercenaries and prisons to incarcerate over two million of its own people.

The research and series of articles in the mass media leading to the conclusion of a lack of money to solve problems ignore the outmoded relations of production between the working class and financial oligarchy and the contradiction between a socialized economy and its control by competing private interests, which are the root of the problem of inequality and powerlessness of the working people to deal with the conditions they face. Those who do the work and sell their capacity to work to the rich have no economic or political control over the economy and have access only to that portion of the new value they produce paid to them in wages and whatever social programs that may exist in exchange for their capacity to work.

The rich who own and control the productive forces, the direction of the economy and the cartel party political system of the Democratic and Republican Parties expropriate added-value from the new value workers produce. Taxation has become a broad method of the financial oligarchy to take back from working people what they have been paid in exchange for their capacity to work. The ruling elite of competing factions of the financial oligarchy and their political representatives have control over how that value is distributed and used. The prevailing relations of production dictate the control of the ruling imperialists over the economy and its direction. The politics of the cartel party system of the Democratic and Republican parties reflect the control and domination of competing factions of the ruling elite.

Most social programs such as education and health care result in increased value of the capacity to work of the working class. The companies that consume this value should pay for it not through taxes but by directly paying the institutions that produce the value. To increase individual and social reproduced-value demands action to bring into being increased investments in social programs and free public services, higher wages, pensions and benefits for workers, an end to paying the rich, and a new anti-war pro-social direction of the economy.

The U.S. working class is faced with a class struggle to organize itself as a viable social force capable of defending its rights, forcing the rich to increase the reproduced-value working people receive in exchange for their capacity to work, and through its own independent politics open a path forward to democratic renewal and a new direction for the economy.

An independent political program and nation-building project of the working class and its allies to empower themselves through democratic renewal include increased investments in social programs and free public services to guarantee the rights of all, and actions to stop paying the rich and to dismantle the war economy and give it a new pro-social direction. This can be accomplished through the development of the organized independent politics of the working class and its own thinking, outlook and agenda in opposition to the politics, outlook and agenda of the rich and their cartel party political system of competing factions of the financial oligarchy.

The working class and its allies must develop their own independent politics, media, voice and democratic personality. They cannot rely on the rich and their political representatives within the cartel party system and mass media to act or speak on their behalf, solve the social problems facing the country, chart a new anti-war pro-social direction for the economy and country, and open a path forward to the emancipation of the working class.

(VOR, December 13, 2019. Photos: VOR, Future Boston All)


This article was published in

Volume 49 Number 32 - December 21, 2019

Article Link:
Social Conditions Deteriorate in the United States


    

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