December 28, 2019 - No. 33
Matters
of Serious Concern for Canadians
Who the
Economy Should Serve
![](../images2019/WorkersEconomy/Slogans/110129-HamiltonDOA-WhoseEconomCry.JPG) ![](../images2019/WorkersEconomy/Slogans/120421-TorontoDOAAgainstCutsSigns-48CR5.JPG)
• Examining the Outlook of the Ruling
Elite on How to Fund Social Programs and Public Services and
Infrastructure
- K.C. Adams -
• Note to Readers
Matters of Serious Concern
for Canadians
Across the
country, working Canadians, youth and students, and collectives
representing every kind of need are fighting against the neo-liberal
anti-social offensive and its repercussions on society. The wrecking of
social programs has led to an unending deterioration of public
services, along with deteriorating wages and working conditions. The
matter of who the economy should serve is not discussed at all. A
diversionary debate is promoted by governments, media and the parties
that form the cartel party system in all the provinces on whether to
raise taxes to pay for social services, or cut taxes and reduce
spending on social programs. Both sides cite high ideals to
deliberately avoid dealing with the role health care, education, public
services and social programs play in the socialized economy.
What is obscured is that those who work in health
care, social care, education and other social programs all add value to
the economy. Their work, which improves the productive capacity of the
working class itself, is the origin of value in this sector of the
economy, which directly contributes to other sectors. The issue of
putting this value back into the economy as investment to meet all that
is needed to sustain a modern universal health care, education and
public services system at the highest level is never discussed.
Moreover, enterprises that directly benefit from the health care their
workers receive in the form of greater productivity do not pay for this
benefit, meaning that the value created through that health work is not
realized. Instead, it is made an individual matter to be paid for
privately, or must be funded from the public purse and sourced from
taxation.
Not only does this "debate" feed the notion that
health, education and social care services are a "cost and a burden" to
the "real economy," but it also serves to hide the fact that the
private sector actually recognizes this wealth creation in the public
sector and social programs. This is why oligopolies linked to health
care, pharmaceuticals, seniors' care and related fields take over
public services so as to realize for themselves the wealth created in
health care, social care, education and other social programs. Such
privatization of public services drastically reduces the amount of
services to the people and makes people pay for them through taxes or
direct income. It is also well recognized that the media, governments
and the parties that form the cartel party system do not engage in
arguments that pit raising taxes against "balancing the books" and
eliminating deficits when it concerns funding war and war production,
or bailouts to the rich and their interests.
It is important
that the value produced by workers in health care, social care,
education and all social programs is recognized. It is not possible to
organize any aspect of the society without the contribution of the
public sector and social programs. In a modern society, no aspect of
the economy and of life can function without healthy, educated
people and the social programs that contribute to the well-being of
society as a whole, including welfare payments, pensions in old age,
care for injured workers, programs for women and children, the injured
and unemployed and so on.
In a modern society, the health care, social care
and education of working people are a vital claim on the wealth created
by all of the people in the economy. For the media, governments and
parties that form the cartel party system to speak about these social
programs being dependent on the balancing of income and outcome of
taxation is to obscure the source of wealth available so as to serve
other interests, notably that there are any number of pay-the-rich
schemes funded by the Treasury. The people have a claim on the whole
economy to serve the general interests of society to meet the needs of
all for modern public services. This is the way forward that working
people fight for. Their claims on society open a path to resolving the
crisis in the health service, social care and other social programs.
![Haut de page](top.gif)
- K.C. Adams -
![](../images2019/WorkersEconomy/Slogans/130501-CalgaryMayDay-108cr2.JPG)
Articles published in the New York Times in 2019
discuss imperialist theories of how to fund or not fund social
programs. These theories emanate broadly from the view that social
programs emerge from unproductive work; they therefore are
consumers of value and produce no new value, which can be
exchanged for equivalent value with other sectors of the economy.
The consumption of value during unproductive work such as military
activity becomes a cost to the economy, a burden that must
be borne by other economic sectors. The working class must
challenge the assumption that social programs are unproductive,
similar to the clearly unproductive sectors whose existence
consumes value produced elsewhere in the economy.
If social programs are to exist at all, according
to the imperialists, they must fulfill one or more various roles such
as:
- increase the productivity and value of the
capacity to work of the working class and its reproduction and
availability;
- allow the financial oligarchy to use and profit
from the benefits and productivity of the modern socialized economy and
working class but not pay directly for the value produced socially in
social programs, public services and public infrastructure;
- be organized and viewed in such a way to allow
the particular enterprises of the financial oligarchy to avoid directly
paying for the increased social value and capacity to work of the
working class, which they consume;
- open possibilities for the financial oligarchy
to expropriate added-value from social programs, public services and
public infrastructure rather than have it retained within the public
domain and public enterprises to strengthen the public sector with
increased investments;
- be necessary under certain conditions to
forestall a revolutionary upheaval of the organized and socially
conscious working people.
The worldview or outlook of the ruling elite on
how to fund social programs is in contradiction with the modern
socialized economy. Their outlook arises from their social being rooted
in their private ownership and control of the socialized productive
forces and their privileged class position allowing them to expropriate
as private profit the added-value the working class produces
collectively.
The following is a series of excerpts from the first of three articles
in the New York Times accompanied with comments
from the author. Parts Two and Three examine the second and third
articles from the Times.
Part One
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On Paying for a Progressive Agenda: Getting
fiscal about policy proposals
Paul Krugman, New York Times, February 19, 2019.[1]
New York Times: Whoever
gets the Democratic nomination, she or he will run in part on proposals
to increase government spending. [...] There will
be demands that the candidate explain how all this will be paid for
[...] some real questions about the fiscal side of a
progressive agenda.
[... Elizabeth] Warren's latest proposal on child care [...]
has me thinking that we could use a rough typology (classification) of
spending proposals, classified by how they might be paid for.
[First classification of
how social spending proposals might be paid for.] Investment -- Typically spending
on infrastructure or research, but there may be some room at the margin
for including spending on things like childhood development in the same
category. The defining characteristic here is that it's spending that
will enhance society's future productivity. [Much of what
seems to be in the Green New Deal falls into that category.] How should we pay for that kind
of outlay? The answer is, we shouldn't.
Comment:
Public investment in infrastructure and research increases productivity
in the workplace and the economy generally. This social value is
typically not exchanged for money when private enterprise directly
consumes or otherwise benefits from the investment. The New
York Times item admits that certain social programs increase
the value of work-time or the capacity to work of the working class.
Instead of advancing the thesis that the investment and production of
social value should be viewed and treated as any commodity and
exchanged in the marketplace for an equivalent value when bought or
otherwise consumed, the article lets enterprises off the hook from
directly paying through exchange of equivalents for the socially
produced value they consume. Krugman bluntly states, "We shouldn't pay."
But this begs the question why these socially
produced commodities should be treated differently from other
commodities that enterprises consume in their operations. Why should
private enterprises and the rich oligarchs who own them be allowed to
consume publicly produced value without paying for it? Krugman makes a
mockery of the issue by saying "we" the public should not pay in the
first place. The "we" conveniently ignores the division of the
socialized economy, and society, into two main social classes: those
who sell their capacity to work to acquire a living (the working class)
and those who buy the capacity to work of the working class to run
their enterprises dominated by the financial oligarchy.
We shouldn't pay, Krugman suggests, but rather
borrow the money from the federal treasury and then forget about it, as
if servicing public debt to private investors is of no importance or
the debt simply disappears into some economic dark hole without any
ramifications for the economy.
NYT:
[...] If you can raise
funds cheaply and apply them to high-return projects, you should go
ahead and borrow. And Federal borrowing costs are very low -- less than
one per cent, adjusted for inflation -- while we are desperately in
need of public investment, i.e., it has a high social return. So we
should just do it, without looking for pay-fors [user
fees].
Comment:
The grain of truth of what Krugman suggests would only come to fruition
if, firstly, the borrowed funds were from government (public) sources
and not private moneylenders, and secondly, if the borrowed funds were
invested in public and private enterprises that returned a portion of
their profits to service the public debt and allow further public
borrowing from itself and investments.
The value from "desperately needed" public
investment and its "high social return" goes into the socialized
economy where enterprises consume it without paying for it. If they
paid for it as they should, the money would be returned to the public
investor to pay off the original investment and debt. Otherwise, the
public treasury is on the hook for it and the financial oligarchy
carries on merrily with its class privilege, exploitation of the
working class and ridiculously extravagant lifestyle intact, while real
social problems are ignored and left unresolved and starved for public
investments.
The "pay-fors [user fees]" comment is to suggest
that individuals should be saved from paying for the socially produced
value when in fact the actual beneficiaries or consumers are
enterprises that need the value for their operations and should
directly pay an equivalent in exchange for the value [realize its
value].
NYT:
[Second classification of
how possibly to pay for social spending proposals, according to Krugman.]
Benefits
enhancement -- Benefits enhancement, the second category is a bit
harder to define, but are initiatives that either expand an existing
public program or use subsidies to create incentives for expanding some
kind of socially desirable private activity.
Comment:
This classification appears to entail mainly pay-the-rich schemes in
one form or another. Public handouts to the financial oligarchy in
various ways in all sectors whether in crisis or not have now become
routine practices for all governments.
Public funds are used to ensure profit can be
expropriated directly from social programs such as Medicare and
education. In the U.S. most hospitals are private enterprises while
both in the U.S. and Canada, private enterprises own and control the
construction and supplying of hospitals, the pharmaceutical sector and
almost all local medical clinics. This ensures a huge chunk of social
added-value produced in the health sector and a substantial amount in
the education sector is directly expropriated to fill private coffers.
Most of the expropriated added-value is removed from the sectors, not
to speak of what happens to the produced commodity, which is the
increased social value of the capacity to work and how it may or may
not be realized.
Payment for the social value from having a healthy
reliable and educated workforce, which increases the social value of
the capacity to work, has become a muddled hodgepodge of taxes,
individual user fees, public and private company and individual
insurance schemes and other measures.
Key issues are
avoided and lost in this New
York Times debate: health care and education for all are a
right and the state is duty bound to guarantee those rights; and,
enterprises are responsible to realize (pay for) the social value from
health care and education found in the capacity to work of the workers
they employ and consume.
Health care and education today are rights that
exist in the relation between the individual and the socialized economy
and modern society. The socialized economy is capable of satisfying
these rights from birth to passing away but to do so its form,
including ownership and control, must be in conformity with its
socialized nature.
How the social value from social programs and
public services and public infrastructure are realized in practice
requires direct confrontation with the financial oligarchy, a
restriction of its social wealth and political power through democratic
renewal and modern arrangements and human relations. This conflict or
class struggle is a centrepiece of a nation-building project the
working class must take up and bring into being through its own
efforts, organizing, institutions and social consciousness.
NYT:
The Affordable Care Act falls
into that category [benefits enhancement]. It expanded Medicaid while using
a combination of regulation and subsidies to make private insurance
more available to families above the new Medicaid line. Warren's
childcare proposal also fits. So would a "Medicare for All" proposal
that involves allowing people to buy in to government insurance, rather
than offering that insurance free of charge.
So
you want some kind of pay-for [user fees or taxes]. [...]
That is how Obamacare was financed: the revenue
component came almost entirely from taxes on high incomes.
[...] Warren has proposed additional taxes on the wealthy --
her proposed tax on fortunes over $50 million would yield something
like four times the cost of her child care proposal. Benefit
enhancement can be paid for with taxes on high incomes and large
fortunes. It doesn't have to impose on the middle class.
Comment:
This perpetuates the situation where social programs in general are
viewed and treated as costs to the economy, do not add value and
require imperialist taxation. Taxes on the rich can just as easily be
eliminated as increased, as has often happened in the past with a
change in government. Taxes on working people have become constant and
ubiquitous, including now even the fraud of carbon taxes, a form of
sales tax. Also, how government revenue is spent is not under the
authority of the people. Like taxes, social programs can be put in
place or eliminated according to whatever the financial oligarchy
directs its governments to do. The anti-social offensive of the last
decades bitterly teaches the people that truth.
The conditions
cry out for social programs to solve society's problems but the people
do not possess the authority to satisfy the conditions. The old
established form of government deprives the people of empowerment and
democratic renewal to constitute a new form of governance in conformity
with the modern conditions. This brings to the fore a historic clash
between the conditions and the authority, between the desired content
and the established form. The people cry out against the anti-social
offensive and yearn to solve the country's economic, political and
social problems but they face the reality of an absence of their own
authority and form where they can satisfy their claims and build the
New. It highlights what the Communist Party of Canada
(Marxist-Leninist) says is the need in all spheres of endeavour to
enunciate the claims of the working people on society and enforce
arrangements based on the people exercising control over the decisions
they take and creating an authority of their own.
Krugman's "some kind of pay-for (user fees or
taxes)" diverts attention away from the fact that the social value
embedded in the working people from social programs such as health
care, education and pensions must become part of the realized value of
the capacity to work of working people. Other sectors and enterprises
of the socialized economy must pay for this social reproduced-value
just as they pay for the value of fixed assets or material they use and
consume in their operations.
The realization of the value of social programs
must become an ingrained feature of the current system of production
for exchange of commodities in a market. As long as the economic system
does not primarily produce directly for use and continues to have a
labour market where the capacity to work of the working class is bought
and sold as a commodity, then social reproduced-value must be realized
as part of the price (exchange-value) of the capacity to work.
NYT:
["Major system overhaul" is the third classification according
to Krugman of how social spending proposals might be paid for.]
Major system
overhaul -- The archetype would be replacing employer-based private
health insurance with a tax-financed public program -- the purist
version of Medicare for all. A really major expansion of Social
Security might fall into that category too, although smaller
enhancements might not.
Private
health insurance currently amounts to six per cent of GDP. To implement
these proposals [tax-financed public program of Medicare
for all and other policies of the Green New Deal], then, we'd need a lot more
revenue, which would have to come from things like payroll taxes and/or
a value-added tax that hit the middle class.
Comment:
The melodrama is misplaced. The "purest version of Medicare for all"
needing "a lot more revenue" reflects how important social programs,
public services and public infrastructure have become in the modern
economy. Their enormous role and reality are deliberately confused to
allow the financial oligarchy and the particular enterprises it owns to
avoid directly paying for the social value workers produce, which all
enterprises consume. "The purist version of Medicare for all. A really
major expansion of Social Security" collapses into the fraud of a
"tax-financed public program [...] like payroll taxes and/or a
value-added tax that hit the middle class."
"Replacing employer-based private health insurance
with a tax-financed public program" is what the financial oligarchy has
done in Canada. In the latter part of the 20th century, this was
attractive to the U.S. auto monopolies that wanted to avoid
"employer-based health insurance." To take advantage of this, along
with Canada's unemployment insurance regime, which allowed auto
monopolies to lay off their workers but keep them on standby with
public benefit payments during the layoff, the financial oligarchy
established the U.S./Canada auto pact and increased vehicle production
in Canada. Since then, the anti-social offensive in the U.S. has passed
much of the burden of employer-based health insurance on to the
employee so the advantage of a "tax-financed public program" is less
attractive to the financial oligarchy.
Workers in education, health care and generally in
social services add value to the capacity to work of working people,
both to the value of their specific capacity to work and to their
reproduction and existence at a certain standard from birth to passing
away. The value exists in their capacity to work and its
exchange-value, which is equivalent to the average value that has gone
into producing and reproducing it. When the exchange-value of the
capacity to work of workers is exchanged and realized (sold and
bought), a part of the income should be returned directly to those
social sectors and enterprises that produced the social value of the
capacity to work in the first place. This is not taxation but an
exchange of money for a portion of the value of a commodity, in this
case a human commodity, its capacity to work, similar to the buying of
electricity, iron ore or any other material necessary to operate an
enterprise. The money from the realized exchange should not go into
general government revenue but directly to the sectors and enterprises
producing the value according to the calculations and assessment of
workers involved in those enterprises and sectors.
The capacity to work when used during work-time
(its use-value) reproduces an equivalent to its exchange-value called
reproduced-value, and in addition produces an amount called
added-value. The use-value of the capacity to work of the human
commodity, the new value it produces, is greater than its
exchange-value, the value that has gone into producing the capacity to
work.
Part of the reproduced-value goes to the
individual worker as individual reproduced-value (wages and benefits)
and part goes (or should go) to the social enterprises as social
reproduced-value.
Those who own and control the productive forces
expropriate the added-value as profit and divide it up amongst
themselves.
Together, the reproduced-value and added-value
equal the new value workers produce, its use-value, which is greater
than its exchange-value, the amount the employer pays for the capacity
to work of its employees.
The necessity of social programs, public services
and public infrastructure arises objectively from the complexity of the
modern productive forces and the great advancements in productivity and
trade requiring an educated, healthy and reliable working class and a
vast array of services, machines, material, financing and means of
transportation. Public services, public infrastructure and public
financing (including pay-the-rich schemes for the more powerful
enterprises) reflect the interconnected and cooperative nature of the
socialized economy. Without them and the human factor, individual
enterprises could not operate or even exist.
From the point of view of the working people, the
necessity of social programs is to guarantee their existence as workers
from birth to passing away at a standard of living determined by their
class struggle and the development of the productive forces. This
necessity arises from workers' social being as the essential human
productive force within the socialized economy of industrial mass
production that must sell its capacity to work to survive and to ensure
its reproduction and the continuation of society. Social programs are
the material expression within the socialized economy that rights for
all and a certain standard of living throughout life can only be
guaranteed socially, collectively and cooperatively within modern human
relations.
The socialized economy has advanced to and is
based on industrial mass manufacturing, resource extraction and
transportation, social programs, public services and public
infrastructure and financing. The whole requires cooperation amongst
all its sectors and parts for mutual benefit, development, and extended
reproduction to guarantee the well-being and rights of the people, the
humanization of the workplace and the social and natural environment,
and the advancement of society. The working class has the social
responsibility to activate the human factor/social consciousness to
bring into being new economic, political and social forms and relations
that conform to the socialized nature of the modern economy and
society, and establish an authority of their own creation.
Part Two
If most social programs and public services were
recognized and accepted as producers of value, as they rightly are,
then the produced value could or rather should be exchanged for
equivalent value with other sectors and enterprises in the economy.
The consumption
of value by unproductive programs such as the military, spy and police
agencies are a cost to the economy, a burden that must be borne by
other economic sectors and enterprises. The working class must
challenge the assumption that social programs and public services
generally are unproductive similar to the clearly unproductive sectors
such as the military whose existence and use consume value produced
elsewhere in the economy.
The outlook of the ruling elite on how to fund
social programs and public services and infrastructure is in
contradiction with the modern socialized economy. Their outlook arises
from their social being, rooted in their private ownership and control
of the socialized productive forces, and their privileged class
position allowing them to expropriate as private profit the added-value
the working class produces collectively within the socialized economy.
Their consideration of most social programs and public services as
unproductive allows the enterprises they control to use and consume
socially produced value without paying for it in a proper exchange as
should be the norm in an economy rooted in production for exchange and
not direct use.
The following excerpts are from a second New
York Times article accompanied with comments.
Your Grandchildren Are Already in
Debt: It's irresponsible to pretend that America can add splashy new
social programs without finding a way to pay for them
-
Steven Rattner, New York Times, February 11, 2019. [2]
NYT:
It's
irresponsible to pretend that America can add splashy new social
programs without finding a way to pay for them.
Medicare for
All. The Green New Deal. Free college tuition.
With each new
entrant into the Democratic presidential sweepstakes comes a fresh
cascade of ambitious social programs to entice and excite would-be
supporters.
Comment:
Policy objectives such as those contained in the Green New Deal are
standard fare in imperialist elections to "entice and excite would-be"
voters. Policy objectives are not meant to be all-sided solutions that
consider the socialized economy as a whole and challenge entrenched
class privilege and the control of social wealth and the economy by
private interests. The government does not control the economy.
Competing private interests within the financial oligarchy control the
economy and any policy objective that in practice harms their private
interests would be fiercely opposed.
The disparate private interests in control of
parts of the economy compete for what is best for their separate
competing interests and do not necessarily consider or even think about
what is best for the whole or how their particular private interests
should relate to other private interests to serve the whole.
As well, policy objectives collapse when it comes
to how to pay for them. Payment for social programs demands a broad
vision of how the policy objective fits into the whole, and the whole
is not under the control of the government but under the control of
competing private interests who fight tooth and nail for what is best
for their particular private interests. Their social wealth and
connections and control of the mass media and state institutions block
the development of public opinion in favour of solving, in a concrete
way, the problems the economy and society face, for that would mean
restricting their monopoly right as owners of property. A valid reform
that favours the people requires mass political mobilization of the
working people to force it into being.
Under the current conditions, private interests
enact so-called reforms that in some way favour their private interests
such as pay-the-rich schemes that channel state funds to their
enterprises, give them guaranteed state contracts and allow them to
lend their accumulated social wealth to the state in return for
interest profit.
The monopoly right of owners of parts of the
socialized economy is sanctioned in law in opposition to the
affirmation of the rights all people have by virtue of being human. For
example, both the current North America Free Trade Agreement (NAFTA)
and its proposed replacement, the Canada-U.S.-Mexico Agreement, outlaw
state-owned enterprises competing with private enterprise or in any way
harming private interests and their ownership of parts of the economy,
no matter how lofty and desired the reforms and goals of the
state-owned enterprises may be and whatever problems they may be
designed to solve.
Policy objectives are broadly meant to propel the
cartel political parties and their candidates into government
positions. Policy objectives become sound bites in electoral campaigns.
Policy objectives cannot be all-sided in the manner Rattner suggests by
explaining in detail how the reform would work in practice and affect
the overall economy. If the advocates of policy objectives presented an
all-sided view on how to guarantee and deliver health care for all,
this would necessarily mean stepping on the toes of various private
interests such as private hospitals, private hospital suppliers,
private insurance and pharmaceutical companies and getting involved in
how other sectors and enterprises in the economy should realize the
value health care workers produce.
A true reform favouring the people in the delivery
and production of health care and production of associated products
would recognize how the sector relates to the rest of the economy. In
effect, this would mean explaining in detail how other sectors of the
economy interact and benefit from the value of healthy working people.
It would expose how most social programs and public services and
infrastructure lift up and add value to the economy and the concomitant
necessity for other sectors and enterprises to pay in exchange for that
value when they use and consume it.
Official politicians within the imperialist system
are hamstrung in advocating and putting into practice policy objectives
that favour the people because government does not control the economy
and broader state machine. Competing private interests and their
enterprises control the imperialist economy. Policy objectives and the
reforms they advocate come up against a wall of private interests and
monopoly right. Any reforms must manoeuvre around these private
interests and monopoly right to avoid affecting negatively them or even
to serve them. Policy objectives cannot delve deeply into the problems
they propose to solve because that would mean confronting powerful
private interests and their monopoly right to do whatever favours their
private interests and class privilege. Those private interests and
monopoly right often profit from and cause the social and economic
problems that are crying out to be solved.
NYT:
The list of
"payfors," to use a bit of Washington jargon, grows more slowly.
They'll pay for this how, again? Tax the rich, tax the rich -- or take
cover behind a convenient bit of progressive dogma: Don't worry about
the fiscal impact because America's rising budget deficits and debt
levels don't much matter.
That's a scary
drift of thought, and it should set off alarm bells for all Americans.
Vast increases in debt will ultimately compromise Washington's ability
to maintain its current array of spending programs, let alone add new
ones, and threaten our standard of living.
[...]
On present
course and speed, the United States is on track to experience the
highest deficits in its history, reaching more than $2 trillion a year
by 2029. Those annual gaps are projected to bring America's total debt
to nearly $33 trillion by that date, according to the Committee for a
Responsible Budget. That's double today's level and more than the size
of our economy, a peacetime record.
[...]
America is
simultaneously indulging in two deficit-busting desires: for lower
taxes and for robust government programs. Eventually, the interest on
all the debt will force the governments of future generations to
reverse those fiscally imprudent policies in order to pay for today's
profligacy.
Comment:
Rattner obfuscates state debt to private moneylenders. State borrowing
from private moneylenders is an obscene pay-the-rich fraud. A modern
state does not need to borrow from any institution but itself. A
solution or reform of the existing state debt is to put a moratorium on
servicing it and launch an investigation into its origin and legitimacy
with an eye to cancelling most of it, at least the part that has
already been repaid many times over through the deceit of compound
interest.
Aside from putting a moratorium on servicing the
existing state debt and ending state borrowing from private interests,
other aspects of how the state could raise funds to increase
investments in social programs must be investigated.
The state borrowing from itself to invest in
social programs and public services and infrastructure, and to enhance
the economy and increase productivity is similar to corporate borrowing
to boost production. Repayment of the debt comes from the future
realized added-value workers produce. A problem for productive social
programs and public services and infrastructure is that other sectors
and enterprises in the socialized economy refuse to recognize the
social value those programs produce and pay for it in a proper exchange
similar to the purchase of any other commodity. When that socially
produced value is used but not realized in a proper exchange of value,
the social value from social programs and public services and
infrastructure becomes an enormous gift to the financial oligarchy to
increase the profit it expropriates and the social wealth it owns at
the expense of the people and their well-being and that of the economy,
and render more powerful the class privilege of the ruling oligarchs.
A moratorium on servicing the existing state debt
and ending any state borrowing from private moneylenders would require
restricting monopoly right, as any true reform under imperialism must
do. It would also put an end to the lie that social programs and public
services and infrastructure in general need taxes or state borrowing
from private moneylenders for investment. If the value they produce
were properly realized, social programs and public services and
infrastructure would be able to increase investments using the revenue
they receive from the sale of their social value, and when needed,
borrow funds from a state financial institution. The return of borrowed
funds would be guaranteed from the prospect of increased production of
social value and the resulting income of the programs in question. Most
individual taxation, payroll deductions, provincial premiums and tolls
related to social programs and public services and infrastructure
should be cancelled.
The working people should grasp firmly that the
socialized economy is not a mystery or unknowable. Understanding the
economy requires acts of finding out. Through acts of their own,
workers are quite capable of finding out the amount of value they
produce at a hospital, a school, any enterprise or construction project
such as a bridge or subway and the total their particular social
program or sector produces. Through additional acts of finding out,
workers can discover where the value they produce goes to be used and
consumed and how much value should be realized and returned directly to
their hospital, school, construction project and sector, and how much
more should be invested and produced to affirm the rights of all and
their well-being and to play a positive role in the extended
reproduction of the economy.
NYT: [...] But that's not all. The
generally accepted measure of America's national debt doesn't include
obligations for future retirement and health care benefits.
In a perfect
world, those programs would function like insurance; each generation's
annual premiums would pay for support received during its golden years.
Comment:
Rattner introduces confusion on retirement and
pensions and lumps them in with health care in an incoherent mess. The
working class sells its capacity to work to employers in the socialized
economy. This sale of workers' capacity to work must be recognized both
in its particular and general form.
The particular form is the immediate job or
employment of living active workers. The particular form exists only
within the general, which is a living healthy educated worker as a
member of the broad working class from birth to passing away and from
generation to generation. Without successive generations of workers, no
particular workers would be available to sell their capacity to work to
those who own and control the socialized economy.
The particular or individual aspect of a worker
cannot be separated from the social or general working class and the
need to reproduce the next generation of the working class and
guarantee its existence from birth to passing away as a right and
necessity for the modern economy and society. The economy cannot
function without a constant supply of workers from one generation to
the next at a modern level of health and education with their rights
affirmed and guaranteed.
Particular or individual workers receive wages and
benefits that reproduce their capacity to work. Workers reproduce this
value through their work-time, which is their individual
reproduced-value. The individual reproduced-value is realized with the
sale of the commodity and returned to the employer who has paid the
wage.
The general working class receives its social
programs, including pensions and health care to guarantee their
existence at an agreed standard of living from birth to passing away as
the producer of the value the economy and society require to continue.
The working class in general through its particular or individual form
reproduces this social value collectively through its work-time, which
is the social reproduced-value. The social reproduced-value is realized
with the sale of the commodity and returned to the employer who has
paid the amount to the proper social institutions in exchange for the
consumed value.
NYT: [...] Meanwhile, progressives argue
that certain kinds of spending are, in reality, investments that will
bring large dividends in the future. With interest rates still near
historic lows, they contend that the returns from borrowing for these
investments would greatly exceed interest costs.
Comment:
Investments in social programs and public services and infrastructure
should come mostly from the realized added-value contained in the value
social programs and public services and infrastructure produce, when
the value is sold in a proper exchange with other sectors and
enterprises in the economy, which use and consume the value.
Borrowing from public financial institutions, not
private, could supplement the investment. No interest profit for
private moneylenders is necessary when state borrowing is restricted to
state or public financial institutions. The return of the borrowed
funds should be equal to the principal amount plus administrative
charges and come from the extended reproduction of the social program,
public service or infrastructure and the additional value it provides.
NYT: While that's true
[that investments will bring large dividends in the future], deciding what is an investment
and what is just an expense with no potential return would inevitably
become a political debate. Democrats and Republicans might quickly
agree about investing in building roads and bridges but what about
spending on education? Should that be considered an investment? What
about work force training or research and development? I fear that in
the end, many spending programs would be classified as investments
simply to make the budget deficit appear smaller.
Comment:
Oh what an incoherent mess he makes of the socialized economy, but we
are not afraid because we have brains and initiative to act, and
through acts of finding out we can understand anything.
Rattner fears and refuses to recognize that social
programs and public spending on services and infrastructure are both
necessary and, importantly, produce value that other sectors of the
economy and enterprises must recognize and realize when they use and
consume the value. Perhaps he fears such a restructuring of the economy
would bring it more closely into conformity with the socialized
productive forces. The obvious interrelatedness of the sectors would
open the eyes of working people to go further and act upon the
necessity for cooperation and planning and, worst of all for the
oligarchs, actions with analysis to socialize the relations of
production if problems are to be solved in a manner that favours the
people.
Where will it all end, Rattner worries. It could
all become too obvious. Perhaps conscious demands would arise for a
revolutionary new direction for the economy where the relations of
production are brought into conformity with the already socialized
productive forces, and the actual producers gain control over the
socialized economy and, crucially, the distribution of the added-value
workers produce and its concentrated expression in political power and
empowerment of the people.
Rattner thinks that all can agree that investments
in "roads and bridges" "bring large dividends in the future" but
disagreements abound regarding social programs and other public
services and infrastructure. But who would disagree, one could rightly
ask, when the socialized nature of the economy has already become
starkly evident. Could it be that the fraud of state borrowing from
private moneylenders would be at risk if the socialized nature of the
economy became part of the social consciousness of all? Could it be
that the necessity of realizing the value of social programs and public
services and infrastructure in proper exchange with other sectors and
enterprises in the economy must be avoided to protect private interests
and their economic and political control and class privilege? My
goodness, would threats arise to eliminate the control of the economy
and politics by a tiny elite of rich oligarchs who cherish above all
else their private property and class privilege and control?
NYT:
Regardless,
taxes need to go up.
Comment:
This is the outdated assertion from the point of view of those who own
and control the socialized economy and refuse to acknowledge their
private business interests operate in a socialized economy. They must
pay in proper exchange for the value they use and consume from social
programs and public services and infrastructure they use and consume on
a daily basis. These payments should go directly to the sector or
enterprises providing the social goods or services, such as the
education or health care sectors, or roads, bridges and subways. These
payments in exchange for the value they use and consume should not go
through government as taxes. The payments are not taxes and should not
be seen as taxes just as much as the payment a steel mill makes for the
iron ore it consumes is not taxes.
![](../images2019/WorkersEconomy/Transportation/190902-TorontoLabourDayFreeTransit-CUPE-01cr.jpg)
Electrical workers employed by the Toronto
Transit Commission call for free public transit, Labour Day 2019.
|
Urban mass transit is but one example that
deserves attention. A huge kerfuffle exists around mass transit over
who should pay for it and who profits from its delivery and operation
and the production of its fixed assets in subways, trains, roads,
bridges and buses. The working class is forced to pay large fares to
travel to and from work, to and from school and to and from shopping
when this necessity is not a means of consumption but a means of
production, and payment should come from the economy itself and its
sectors and enterprises and not individuals.
Mass transit exists as means of production serving
the economy. How would workers go to and from work without mass transit
in the metropolitan regions? The other sectors and enterprises of the
economy need to buy workers' capacity to work and for the most part
that means those workers must present themselves at a place of work for
their use-value to be consumed.
How would students travel to and from schools,
colleges and universities without mass transit? Education is crucial to
the modern socialized economy. Education raises the level of the
capacity to work of individual workers and the working class as a whole
to what sectors and enterprises in the modern economy demand.
How would shoppers go to and from the major stores
without mass transit? Mass transit is also seen as necessary for a
modern economy to combat the negative consequences of the car culture
and pollution, and reduce congestion and delays while travelling, which
are obstacles to productivity of workers and the efficient transport of
goods.
Mass transit is a form of means of production that
all productive forces should view as such and pay for in the course of
pursuing their business similar to any other fixed and circulating
means of production, such as machines, buildings, parts, minerals,
electricity, water, sewage and waste services.
The role of mass transit as means of consumption
for the people is minimal to non-existent. Even most recreation
requires going to and from a business such as a professional sports
venue, restaurant, theatre or amusement park. This means individuals
should not pay for mass transit or any other infrastructure that exists
mainly as means of production for the economy.
The large urban economy cannot function without
its means of production in the form of mass transit. Private businesses
must recognize and realize by proper payment in an exchange of value
for how much each sector and enterprise consumes of the means of
production of mass transit, both fixed and circulating value and all
the other public services and infrastructure the economy needs to
function.
Also starkly revealing in Rattner's lament that
"Regardless, taxes need to go up" is his refusal to even mention the
largest and most unproductive, parasitic and draining program spending
of all -- the U.S. military, spy agencies and other institutions of the
immense police powers of U.S. imperialism.
NYT:
[...] On the spending
side, unfortunately, taking a hard look at the entitlements programs is
essential. I'm not suggesting eviscerating them, but ideas like
modestly raising the retirement age or scaling benefits based on need
should be explored. Even implementing all these adjustments won't
prudently provide room for expansive new social programs. Adopting
those would require still tougher choices about raising taxes and
trimming spending.
[...]
Comment:
The anti-social offensive to serve powerful private interests and class
privilege is where Rattner's backward and outdated thinking ends up.
This anti-social outlook is directed at attacking the rights people
possess by virtue of being human.
For example, eliminating universality, or "scaling
benefits based on need" as he puts it, is a way to weaken, if not
destroy, social programs that realize the right to education and health
care for all. Once a social program as a reform faces competition from
the private sector, such as private education or private health care,
the rich abandon the public sector in favour of the more privileged
private sector, where they receive preferential treatment based on
possession of social wealth. This leads to the degrading of the public
sector because the rich ruling elite have no need for the public
service and resent any money being directed at it, which besides, they
argue, should be made available for pay-the-rich schemes.
Rattner's suggestion of "trimming spending" on
social programs, "taking a hard look at the entitlements programs" and
"scaling benefits" is a recipe for the anti-social offensive.
The imperialist outlook refuses to recognize the
problems facing modern humanity, let alone show any interest in
resolving them in a manner that favours the people. Working people
themselves must organize and prepare their own forces, institutions and
consciousness to deal with the problems they and society face. These
problems and their resolution revolve around questions of who controls
political power, who decides how the issues and problems affecting
people and society should be resolved and in whose interest, and how
modern enlightened people affirm in practice the rights they possess by
virtue of being human.
Part Three
The refusal to pay for the social value produced
by social programs, public services and infrastructure allows other
sectors and enterprises in the economy to consume the value without
directly paying for it in most cases. This greatly weakens social
programs and their extended reproduction and hinders their capacity to
guarantee the well-being and rights of the people.
This final part of this article contains excerpts
from and comments on a third New York Times article:
"Medicare for
All": The Impossible Dream,"
- David Brooks, New York Times, March 4, 2019.
NYT: Medicare for All only works if
politicians ruthlessly enforce spending cuts.
Comment:
The article begins with a brutal assertion: social programs drain funds
from each other and from the productive sectors of the economy. Brooks
contends that the only way to guarantee the right to health care for
all is to deny other rights. He poses the problem of affirming the
right of all to health care and other social programs as a lack of
money. This view derives in part from the conception that social
problems such as poverty, homelessness and the power of the ruling
elite to deprive people of their right to health care and education and
other rights are not results of the prevailing social conditions and
human relations, and the actions of the financial oligarchy and its
state to block the working class from modernizing those conditions and
relations but rather a lack of money.
NYT:
[...] So
single-payer health care, or in our case "Medicare for all," is worth
taking seriously. I've just never understood how we get from here to
there.
Comment:
Brooks postures as someone in favour of Medicare for all rather than
being in outright opposition. From this position he finds the concept
"worth taking seriously" but cannot understand how to bring it into
being. He then blocks discussion on how to move forward by dismissing
as impossible even the hesitant steps and views of several cartel U.S.
politicians on the issue. He becomes the flip side of the same coin as
those political forces completely opposed to affirming the modern
rights of all. Together they seek to stop any development of public
opinion on how to build the New.
Medicare for all in essence should encapsulate the
concept of health care for all as a modern right. Brooks reduces this
to "single-payer health care" where the public treasury buys the social
value created within the privately-controlled health care sector but
receives nothing in return when that value is consumed in the economy.
For his version of Medicare for all as a public single-payer insurance
system to exist, it must suck funds from other social programs and the
public treasury because the single-payer insurance system has no other
source of income.
This misconception or misrepresentation of the
economy and in particular the health care sector hinders people from
viewing the problem as it poses itself as one of guaranteeing health
care for all as a modern right and that the health care sector adds
value to the economy and in no way drains value from it. His view
attempts to block people from taking action to force resolution of the
problem. It obscures the health care sector's vital contribution,
interconnection and relation with other sectors of the economy and
enterprises, and how all the productive parts must enter into exchange
with and realize each other's value.
Brooks is being disingenuous by saying he has
"never understood how we get from here to there." He does not
understand because he does not want to understand. He does not want to
take the first step from here to there. The first step -- the first
action taken -- upon reflection would reveal the next step and
the next in the journey from here to there.
To "get from here to there," the aim has to be to
"get from here to there" as an imperative, to affirm the right of all
to health care and to advance along the path of affirming all the
rights people have by virtue of being human. This requires building
public opinion in this direction and creating the forms for people's
empowerment so they can build the New.
Brooks substitutes the objective world, where
health care for all is a right that must be affirmed, with his lack of
understanding of how to get there. He makes the issue one of not
understanding when in fact he understands all too well within his own
outdated outlook of refusing to affirm the rights of all. This outlook
leads him to deny the objective necessity of affirming the right of all
to health care and complain of not knowing how to "get from here to
there." To bolster his refusal to recognize the necessity to affirm the
right of all to health care he concocts a mental construct of a public
single-payer insurance system to pay for health care value, and in
conjunction with his view of health care producing no realizable value,
becomes dumbstruck when, according to the public accounts, not enough
public funds are available, forcing the government to increase taxation
and "ruthlessly enforce spending cuts."
Brooks asserts that social programs such as health
care and education drain funds from each other and from productive
sectors of the economy. Steal from Peter to pay Paul becomes his mantra
and explanation for his refusal to recognize the necessity of the
objective world to affirm the right of all to health care. Brooks
attempts to drag his readers into his outlook, aim and lack of
understanding, where no alternative is possible.
The outlook is not to affirm the rights of all
because that would require changing the social conditions and direction
of the economy, including how people relate to one another within it.
This he does not want to do because the ruling elite are satisfied with
their social being, class privilege and relations of production, which
they dominate and do not want disturbed. Their social being of
privilege and wealth blinds them to the recognition of necessity.
Brooks is determined to convince others not to
think about any alternative, or even worse, step out boldly in acts of
conscious participation in finding out how to "get from here to there"
by acting upon the modern aim of affirming the rights of all and taking
that first step.
NYT:
[...] Despite
differences between individual proposals, the broad outlines of
Medicare for all are easy to grasp. We'd take the money we're spending
on private health insurance and private health care, and we'd shift it
over to the federal government through higher taxes in some form.
Then, since
health care would be a public monopoly, the government could set prices
and force health care providers to accept current Medicare payment
rates.
Comment:
Interesting that Brooks first makes the issue not
understanding "how we get from here to there" yet suddenly emerges as
an expert declaring "the broad outlines of Medicare for all are easy to
grasp." He then proceeds to tell us what those outlines are, which
stumble from a lack of money.
Brooks makes Medicare for all about money and the
need to shift it around from one social program to another by having
"politicians ruthlessly enforce spending cuts" and increase taxation.
With this, the principle and aim of affirming rights are obscured and
submerged in the problem of how to shift "spending on private health
insurance and private health care [...] over to the federal government
through higher taxes" and "ruthlessly enforce spending cuts."
Brooks does not see or rather refuses to see how
absurd his line of lack of money in the health care sector becomes. Why
would all these private companies be involved in the health care
industry for decades if they are up against a lack of money? Private
interests and enterprises dominate the entire U.S. health care system,
most importantly hospitals, medical clinics, hospital supplies,
pharmaceuticals, laboratories and insurance companies. Shifting
spending from private to public to buy the privately-controlled health
care value does not change the aim of that industry from one of making
as much money as possible in the fastest time to one of affirming the
right of all to health care. In fact it would strengthen the right of
the private health care companies, except the insurance companies, to
guarantee their aim to make as much profit as possible because public
funds would underwrite their aim.
Those who own and control the health care
enterprises enrich themselves by expropriating profit from the
added-value health care workers produce in all their divisions. Payment
for the value their workers produce mainly comes now from "private
health insurance and private health care." Obviously, this arrangement
has not solved the problem of guaranteeing the right of all to health
care. The refusal to change the social conditions and human relations
to guarantee the right of all to health care stems from the social
being and outlook of those in control of the economy, state, media and
politics, those who profit from the current conditions and are
determined to defend their class privilege at the expense of working
people, the economy and society.
A step forward in affirming the right of all to
health care requires moving the health care industry from its current
aim of maximum profits for private interests to the modern aim of
affirming the right of all to health care. The private interests in
control have shown concretely that the issue is not one of lack of
money or the need to cut spending on other social programs, as they
have been enriching themselves for decades on the value their health
care workers produce. Those decades of taking private profit out of the
health care sector have not affirmed the right of all to health care,
as the social conditions clearly reveal. It proves that a lack of money
is not the problem in the health care sector but rather the outdated
aim and relations of production.
The money to increase investments to affirm the
right of all to health care has always been available from the
added-value health care workers produce. A consistent problem has been
the expropriation of this added-value by the private interests in
control who then take much of the value out of the sector.
In fact, many of the private enterprises in the
health care sector would welcome a change to a public single-payer
insurance system as one that would not only guarantee their current
profits but would extend their potential gross income to the tens of
millions of people who now cannot afford private health care or do not
have private or company-supplied health insurance or their insurance is
inadequate and does not include essentials such as pharmaceuticals and
certain treatments or has restrictions on coverage.
To change the conditions within the industry so
that it can affirm the right of all to health care requires two
significant changes amongst others:
- using the sector's own added-value for extended
reproduction, which requires wresting control of health care away from
those in the financial oligarchy who currently dominate all aspects of
the sector and expropriate the produced added-value to serve their
private interests; and
- adopting measures that assure other
sectors and enterprises in the entire economy realize (buy) the
produced health care value (broadly speaking the capacity to work of a
healthy and educated working class capable of working and reproducing
itself) in a proper exchange of value and hand over the realized value
in money to the health care enterprises and institutions that produced
it or, in the event those enterprises remain in private hands, make
payments directly to the public single-payer insurance enterprise,
which then reimburses the private health care enterprises.
Brooks raises the spectre of having to bring in
"higher taxes" and "ruthlessly enforce spending cuts" in other programs
to pay for Medicare for all. He looks at the health care sector and
Medicare for all in a very narrow way that includes only public
guarantees of spending within a "single-payer system" of public
insurance where taxes and possibly individual premiums and user fees
are the only source of income for the public insurance company. He
excludes any direct payments to the public insurance single-payer
company from enterprises that use and consume the social value embedded
in their employees.
In this truncated concept, public spending for
health care faces the daunting task of paying the full price of
production to the private enterprises for goods and services throughout
the sector, including health care delivery at hospitals and medical
clinics, nursing and seniors' care homes, hospital supplies,
pharmaceuticals and laboratories. The single-payer public insurance
system is expected to accomplish this realization of production without
benefiting from the added-value workers produce in the sector and
without receiving payment from those enterprises and sectors in the
economy that consume the value produced within the health care sector
which is, broadly speaking, the capacity to work of a healthy and
educated working class capable of working and reproducing itself.
This is not a conscious first step in an act to
affirm the right of all to health care that the suddenly expert Brooks
is proposing, but a backward step to pay-the-rich by making spending on
health care public, but keeping the entire sector under private control
and not receiving any money in return for the social health care value
that all enterprises consume within the economy. This puts the burden
on the public treasury for the realization (payment) of the full price
of production of privately-controlled and produced goods and services
within the health care sector, which includes profit from the
added-value. Brooks' version of a public single-payer system is denied
any subsequent payment in return for the health care value contained
within the working class and its capacity to work when bought from the
labour market and subsequently used and consumed in work-time.
His public single-payer system is forced to take
money from general tax revenue to pay for social value workers produce
who work for the private health care enterprises and then see that
social value handed to the enterprises in the economy that consume it
without the single-payer public insurance system or public treasury
receiving in return any direct payment from those enterprises for what
should be a proper exchange of a commodity for money.
NYT:
[...] If this version of
Medicare for all worked as planned, everybody would be insured, health
care usage would rise sharply because it would be free, without even a
co-payment, and America would spend less over all on health care.
It sounds good.
But the trick is in the transition.
Comment:
Companies now purchase most private health
insurance for their employees along with co-payments from their
workers. Brooks says, "We'd take the money we're spending on private
health insurance and [...] shift it over to the federal government
through higher taxes in some form." The "we" doing the spending or
paying at this time is mostly companies buying private health insurance
for their employees, usually with co-payments. He proposes shifting or
eliminating the private health insurance companies and turning their
businesses over to a public single-payer enterprise. But through
sleight of hand, he also proposes shifting the paying for health care
insurance from the companies, the "we" which presently buy most of the
private health insurance, over to the federal government that would
have to raise taxes to do so and "ruthlessly enforce spending cuts."
Many enterprises would welcome this transition as
it would free them from directly paying for private health insurance
for their employees. In this case, the switch to a public single-payer
insurance system would entail using mostly public funds from general
government revenue, bolstered with user fees and individual health
premiums rather than direct payments from companies. It should be noted
in this scenario that the global monopolies, which now pay for private
health insurance for their employees are notorious for evading
corporate taxes. Taxation in its many forms is now mostly individual
rather than coming directly from production and circulation of value at
enterprises in the socialized economy.
The delivery in the U.S. of an almost completely
privatized health care system through single-payer public insurance
would immediately confront the necessity to pay for the value produced
within the privately-owned and controlled hospitals, medical clinics,
nursing and senior care homes, labs, and for pharmaceuticals and other
goods and services.
Many immediately question this concept from Brooks
that completely frees companies from paying for public single-payer
health care insurance. Why would Brooks and others not at least propose
that companies should continue paying into the single-payer system in
the same way and rate they are currently paying for private health care
insurance?
Such a reform, if it wants to be taken seriously
as a positive reform, which favours the people, could simply shift the
company payments for private insurance into the single-payer public
insurance system and eliminate all individual co-payments and other
forms of private insurance and health care payments. All individuals
would be covered equally within the public health insurance system
without discrimination based on wealth.
Those medium and large companies currently not
contributing anything for their employees' private health insurance
would be enrolled as well into the single-payer insurance system and be
required to pay their pro-rated share. For example, those companies
employing over 20 workers or reaching a certain threshold of annual
gross income would be enrolled and required to pay a pro-rated public
health insurance amount directly into the plan. This would include
health insurance payments from the head offices of all state-wide and
national chains such as Starbucks, Subway and McDonald's, not from the
individual franchises or outlets. With this surge of income into the
single-payer system well beyond what even private health insurance now
receives, the only federal public funds required would be to make up
whatever shortfall emerges in the initial stage once Medicare for all
is extended to all those presently not covered. As the change takes
hold, the full amount to make the single-payer plan universal and equal
for all without privilege or discrimination based on wealth or any
other consideration could be calculated and the amount companies pay
adjusted on an annual basis eliminating any necessity for tax revenue.
Such a step forward would also open up discussion
on the necessity to make the entire health care industry public and
allow the added-value health care workers produce to be reinvested in
the sector. The plan could then be fine-tuned to make it more exact in
how much social value companies are directly consuming and required to
realize, and the amount needed to ensure the health of all the people
from birth to passing away.
With the growth of public health care, the social
value realized could be returned directly to the public health care
enterprises where health care workers themselves could become expert on
assessing how much value they produce, where the value is used and
consumed, and how much more should be invested to properly fulfil their
role in guaranteeing health care for all as a right at the most
advanced level. It would also stimulate discussion of the necessity to
do the same in all social divisions, such as to fulfil the right of
education for all to the highest level desired.
Regarding the private health insurance companies,
they have no role to play in affirming the right to health care. They
are obvious parasites that should be eliminated, with their employees
transitioned to other employment. In fact, those in control of the
private health care industry feed on the added-value workers produce
rather than allowing it to be used to strengthen the sector. Those in
control of the sector block much of the added-value from being invested
in extended reproduction and where health care workers themselves
determine as most necessary to solve pressing health problems. The
people must face the reality of the modern socialized economy and the
necessity for change with courage and determination to forge a new
direction in a forthright way if the rights of all are to be affirmed
as they must and that working people themselves gain control of their
economy and the social product they produce.
On the front of doctors, Brooks paints a dark
future and through fearmongering attempts to mobilize medical
professionals against any movement or discussion towards public opinion
supporting Medicare for all in any form. He suggests a public monopoly
on insurance payments could mean hardships for doctors and other health
professionals. Brooks writes, "[Doctor] salary losses would differ by
specialty, but imagine you came out of med school saddled with debt and
learn that your payments [from his version of a public
single-payer insurance system] are
going to be down by, say 30 per cent. Similar shocks would ripple to
other health care workers."
The right of education for all is presently
denied. Youth from the working class cannot afford medical school and
other higher education without taking on tremendous debt to the
financial oligarchy. Brooks uses the denial of the right of all to
education and the current reality of suffocating student debt to block
aspiring health professionals from participating in developing public
opinion to affirm the right of all to health care, and education for
that matter.
Adding to his list of impediments to taking any
step forward and to further blunt the development of public opinion to
affirm the right to health care, Brooks suggests the U.S. people
themselves would be traumatized by change away from the current private
health care and insurance system because, "Americans are more
decentralized, diverse and individualistic than people in the nations
with single-payer systems. They are more suspicious of centralized
government and tend to dislike higher taxes." In this way, he poses a
certain consciousness and lack of understanding in opposition to modern
definitions and rights and to the development of public opinion in a
pro-social direction.
Understanding and a corresponding consciousness
develop in acts of finding out the solutions for existing problems
through acts of solving those problems in practice. The broad areas of
acts of finding out are the struggle for production, class struggle and
scientific experimentation. If human beings throughout their
development refused to solve the problems confronting them because of a
lack of understanding or it offended their existing consciousness, many
problems would have remained unsolved, greatly hindering their advance.
Similar to everything else, human understanding and consciousness are
in constant change, development and motion.
To solve the problems confronting humanity
requires actions with analysis not diversions and superficial laments
how difficult or impossible this may be according to our current
understanding or how much solving the problems may offend a certain
consciousness. Today the human factor/social consciousness is necessary
to change the world towards social responsibility on all fronts. The
human factor/social consciousness is constrained by imperialist
consciousness. The starting point is to step forward to solve the
problems confronting humanity through acts of conscious participation
in acts of finding out.
NYT:
[...] The [Bernie]
Sanders plan would increase federal spending by
about $32.6 trillion over its first 10 years, according to a Mercatus
Center study. [...] That kind of sticker shock is
why a plan for single-payer in Vermont collapsed in 2014 and why
Colorado voters overwhelmingly rejected one in 2016. It's why
legislators in California killed one. In this plan, the taxes are
upfront, the purported savings are down the line.
Once they learn
that Medicare for all would eliminate private insurance and raise
taxes, only 37 per cent of Americans support it, according to a Kaiser
Family Foundation survey. In 2010, Republicans scored an enormous
electoral victory because voters feared that the government was taking
over their health care, even though Obamacare really didn't. Now, under
Medicare for all, it really would. This seems like an excellent way to
re-elect Donald Trump.
Comment: Brooks'
words are part of a scaremongering campaign to kill a social program
before it starts and prevent any discussion as to what steps could be
taken to solve an existing social problem in a way that favours the
people. Brooks pretends to be in support of some sort of Medicare for
all but presents the payment for the program in a distorted and
apocalyptic way as harming the people and not assisting them. This is
done to ensure favourable public opinion for a program to solve
problems in the health care sector does not develop. His examples of
voting results rejecting particular single-payer systems are meant to
confirm his thesis that nothing can be done.
This attack on Medicare for all arises from a
deep-seated aim of the ruling elite not to affirm the rights of all on
any front. From this they refuse to accept the truth that most social
programs produce value for the overall economy and its many sectors and
enterprises. The private interests in control of the economy,
enterprises and politics of the country do not want to pay for
socially-produced value embedded in working people as that would
transfer social wealth in a general way from the financial oligarchy to
the people, in addition to improving the lives of many.
The affirmation of rights that the people possess
by virtue of being human entails, in practice, a certain transfer of
the social wealth the working people produce, from the financial
oligarchy to the people. Through social programs, working people
generally claim more of the new value workers produce, as social
reproduced-value, while the financial oligarchy expropriates less
added-value. The anti-social offensive of the past two decades has
meant a reduction in the claim of working people for both social and
individual reproduced-value and an increase in the amount of
added-value the financial oligarchy expropriates as enterprise profit,
interest profit, rent profit and executive profit.
Within this situation, those who control the
social wealth and politics must see some sort of benefit for their
private interests if they are to support a particular social program or
public service, or be forced to give in to the demands of the working
people for increased investments in social programs through mass
political mobilization of the working people who demand the affirmation
of their rights and nothing less.
NYT:
The
government would also have to transition. Medicare for all works only
if politicians ruthlessly enforce those spending cuts. But in our
system of government, members of Congress are terrible at fiscal
discipline. They are quick to cater to special interest groups,
terrible at saying no. To make single-payer really work, we'd probably
have to scrap the U.S. Congress and move to a more centralized
parliamentary system.
Comment:
Brooks admits private interests dominate politics and Congress.
However, if the problem were really an absence of a "centralized"
system, the U.S. is almost there with power now concentrated more than
ever in the President and the executive branch and its police powers.
The problem is not Congress or lack of centralization of power but
private political control of the entire system and the necessity for
democratic renewal through empowerment of the people and new forms of
governing and a modern constitution.
Brooks repeats
his line to "ruthlessly enforce those spending cuts." He refers
specifically to social programs and does not address spending on the
military as something that should be cut. The U.S. House of
Representatives approved a two-year federal budget of $2.78 trillion on
July 25, that was then passed by the Senate on August 1 and signed into
law by President Trump on August 2. Military spending receives the
absolute majority of budgeted funds at $1.48 trillion while the entire
rest of discretionary government spending, including Veterans Affairs
receives $1.3 trillion. Two hundred and nineteen House Democrats and 65
Republicans voted to approve the budget. It should be noted that all
but two cartel party politicians, who have expressed a policy objective
for Medicare for all, voted for the war economy budget, including yes
votes from Representatives Alexandria Ocasio-Cortez, Rashida Tlaib and
Ro Khanna who is co-chairperson of Senator Bernie Sanders' presidential
campaign.
The problem of rights poses itself in a
straightforward way, something the ruling elite refuse to face or even
discuss. Most social programs represent rights of the people in one way
or another that the economy and society must guarantee in practice and
which the current socialized productive forces of industrial mass
production are quite capable of fulfilling. If private interests and
enterprises stand in the way of satisfying those rights, they should be
swept aside.
The necessity to affirm rights presents the
working class with the task of building its own institutions, advanced
social consciousness, democratic personality and mass movement for
change through actions with analysis separate from and in contradiction
with the financial oligarchy and its institutions, state and
imperialist consciousness and agenda.
NYT:
[...] If America were a
blank slate, Medicare for all would be a plausible policy, but we are
not a blank slate. At this point, the easiest way to get to a
single-payer system would probably be to go back to 1776 and undo that
whole American Revolution thing.
Comment:
Not "undo that whole American Revolution thing" but move it forward
into the modern world with a new constitution and political forms that
guarantee the rights of the people and empower them to govern
themselves and control those affairs that affect their lives.
Brooks asserts that Medicare for all is not to
guarantee the right of all to health care but to bring in his own
particular version of "a single-payer system." He debases the positive
reform by making increased taxes the issue rather than finding ways to
bring a reform into being that clearly favours the people. His
assertion is based on the false assumption that the goal or aim of
Medicare for all is his own mental construct of a single-payer system
that would drain funds from other programs and would require spending
cuts for other social programs, increased individual taxation, user
fees and health care premiums. That is wrong. The aim is to guarantee
health care as a right for all and to find a way forward to solve this
problem in practice.
The social value produced in the health care
system, which is essentially the consistent and continuing capacity to
work of healthy human beings, has to be realized by other sectors and
enterprises in the economy. How to do that is a problem that could be
solved within a reform of the present economic system and should be
taken up for solution immediately. Brooks declares that the original
U.S. constitution and its political institutions are not suitable for
bringing in such a reform. He seems to imply that people in the U.S.
have not made any advance since 1776 and the original constitution.
Such an assumption would negate the Civil War, the civil rights
movement, the broad development of the working class movement, the
victory over fascism and militarism of the Second World War, and the
existence of a consistent anti-war consciousness and desire for
political empowerment and the affirmation of rights.
The reform to bring in Medicare for all is
possible within the present political arrangement through mass
political mobilization of the people to affirm the right to health
care. Instead of assisting in developing public opinion in such a
direction, Brooks and the New York Times
consistently throw up roadblocks.
He raises the red herring or diversion that
another style of government is needed, "a more centralized
parliamentary system" within the same basic form and content of the
existing state and constitution that serves the interests of the ruling
financial oligarchy. What he suggests has nothing to do with "go[ing]
back to 1776 and undo[ing] that whole American Revolution thing." He
suggests this as a cheap joke to prove how impossible affirming rights
is within the current system, which he has no interest in changing or
challenging just as he has no interest in changing or challenging his
class privilege, social being and imperialist consciousness, and
affirming the right to health care for all.
The ruling elite in the U.S. have zero interest in
a revolutionary restructuring of the system to put the people in power
and make them sovereign. They want to keep the people subjects of an
artificial person of state who is the sovereign police power ruling
over the people on behalf of the most powerful private interests, the
financial oligarchy.
The issue is not to "undo that whole American
Revolution thing" but to move the political thinking, constitution and
institutions into the 21st century with revolutionary new forms and
content on every front making the people sovereign through their
political empowerment.
The fight to affirm the right of all to health
care is a front of struggle along the path to fundamental revolutionary
change. Working people must organize their own independent institutions
within the present to gain control over their own social wealth,
thinking and agenda, and engage in constant struggles to affirm their
rights and develop their collective strength, empowerment, social
consciousness and democratic personality. The struggles in the here and
now serve the collective and individual interests of the working people
in defence of their rights in the present by raising up their material,
cultural and spiritual well-being. Importantly, the battles to affirm
rights in the present when consistently fought with their own thinking,
theory and organizations also prepare the working people, their
consciousness, leadership and democratic personality for the coming
revolutionary storms so they are able to guide the mass movement in a
direction to ensure the economy, politics and society are transformed
consciously with modern definitions and new forms in conformity with
the advanced productive forces and social conditions.
Conclusion
Imperialism is the highest and final stage in the
period of transition from small scale production to industrial mass
production before the coming necessary revolutionary change in the
relations of production to bring them into conformity with the
socialized nature of the modern productive forces.
The unresolved contradiction between the modern socialized productive
forces and the old relations of production is accelerating several
dominant trends of imperialism. The old relations of production are
personified in the dialectic between the rich oligarchs of the
financial oligarchy and the working class. The rich oligarchs own and
control the socialized productive forces and social product. They buy
the capacity to work of the working class so as to preserve and enlarge
the social wealth they control. To survive and acquire a living, the
working class sells its capacity to work to the financial oligarchy
that owns and controls the socialized productive forces. The working
class is in the throes of a historic battle of democracy to gain
control of the socialized productive forces, its capacity to work, the
social product it produces and their concentrated expression in
political affairs. Imperialist trends consist in part of the following:
- the trend of the rich becoming richer and the
poor poorer;
- the trend towards a war economy, greater global
arms sales and the instigation of regional wars and ever larger wars,
and the destruction of those nations the big powers, especially those
U.S. imperialism cannot control;
- the trend of the concentration and control of
social wealth in fewer hands and the use of that greater social wealth
to expand their control globally and to hire police and military
mercenaries and bribe political representatives to serve their private
interests and attack competitors and working people;
- the trend of more aggressive competition amongst
the global cartels degenerating into reactionary civil war and other
wars as they fight to dominate all public and state institutions
globally and make them serve their private interests;
- the trend of the uneven development of the
productive forces under imperialism leading to inter-imperialist war
for control of the international working class, markets, economic
sectors, natural resources, and regions, and the use of economic
sanctions and blockades to strengthen the control of the U.S.-led
imperialist system of states and punish all those who refuse to submit;
- the trend of intensifying struggles of the
working class to defend its rights and standards of living and to
change the direction of the economy and revolutionize the relations of
production bringing them into conformity with the socialized productive
forces of industrial mass production.
The rich becoming richer and the concentration and
control of social wealth in fewer hands can be seen in the dictate of
those in control of private monopolies and public institutions
attacking the workers' movement and exerting downward pressure on
wages, benefits, pensions and working conditions. It can be seen in the
cutbacks of public spending on those social programs and public
services that favour the people, and directing the private and public
sectors of the economy to pay the rich. It can be seen in the
continuing wars of aggression, especially those of U.S. imperialism
against other nations and its economic wars using sanctions and
blockades against all who do not bow down to its will and takeover.
The financial oligarchy now controls almost all
social wealth in the economy whether it directly owns it or not. The
pension and saving funds of the people are under the control of the
financial oligarchy, which uses them for its narrow private interests.
It controls as well the public borrowing and debts of governments at
all levels, using them as sources of guaranteed additional private
wealth. It also controls the public revenue of all levels of government
and uses those public monies for its private benefit and war economy.
Much of the public revenue withdrawn from social programs now flows
routinely from the public treasuries of all levels of government to the
most powerful enterprises and global cartels as pay-the-rich schemes
handing public monies and contracts to the most dominant private
interests as subsidies, research grants, guaranteed government
contracts, public-private partnerships, government loans to private
enterprise that are subsequently written off without repayment such as
with the auto sector, and government buyouts such as the Canadian
federal government purchase of the Trans Mountain Pipeline. In
countless other ways the entire economy is geared towards paying the
rich and their expropriation of the new value working people produce.
To affirm the right to health care is an aspect of
the struggle for political empowerment and democratic renewal in
preparation for the revolutionary transformation of the relations of
production to free the socialized productive forces from the
destructive grip of the financial oligarchy and its constant wars,
crises and wrecking, and place them under the control and direction of
the working people.
Notes
The New
York Times says Paul Krugman joined the paper in 1999 as an
Op-Ed columnist. He is a professor at City University of New York and
Princeton University's Woodrow Wilson School. In 2008, the Sveriges
Riksbank Prize in Economic Sciences in Memory of Alfred Nobel was
awarded to Mr. Krugman for "his work on international trade theory."
2. Steven
Lawrence Rattner is a member of the U.S. ruling elite. Following the
economic crisis of 2008, Rattner served as lead adviser to the Obama
Presidential Task Force on the Auto Industry preparing a pay-the-rich
bailout of the U.S. auto industry, which was in disarray with investor
oligarchs poised to lose considerable fortunes. The subsequent Obama
auto and bank bailouts channelled billions of dollars to the financial
oligarchy saving the private social wealth of many rich oligarchs. The
pay-the-rich bailouts closed the door on any discussion or opening
towards a new direction for the economy.
According to Wikipedia,
"[Rattner] is currently Chairman and Chief Executive Officer of Willett
Advisors LLC, the private investment group that manages billionaire
former New York Mayor Michael Bloomberg's personal and philanthropic
assets. He continues to be involved in public policy matters as the
economic analyst for MSNBC's Morning Joe, and as a contributing opinion
writer for the New York Times Op-Ed page."
3. David Brooks currently writes for the
New York Times, the Wall Street Journal,
the Weekly Standard, Newsweek,
and the Atlantic Monthly, and appears as a
commentator on NPR, PBS NewsHour, and NBC's Meet
the Press.
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With this issue, TML Weekly
completes its publication for 2019. It will resume on January 26, 2020.
We wish you a safe holiday and encourage everyone to take the time to
consider and discuss with others the serious developments taking place
in Canada and around the world, and how to effectively intervene in the
new year.
The TML Daily 2019
month-by-month Photo Review began on December 16 and concludes on
December 30. We encourage everyone to share it and review the
achievements of working people in Canada over the past year, with a
view of how to take things further.
Please continue to send us your reports, photos
and views, and keep up to date with the CPC(M-L) website and calendars
of events for important announcements.
We thank you for your support in 2019 and call on
you to double it in the new year, especially by working to increase the
readership of TML Weekly through regular
subscription work as well as by helping to fund this important work.
With best wishes for the coming year,
Technical and Editorial Staff of TML
Weekly
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