25 Years DEMOCRATIC WINTER NUMBE~ VOLUME XXV NUMBER 5&6 S1.50 PUBLISHED BY THE DEMOCRATIC SOCIALISTS OF AMERICA DSA ,

Crap Shoot Pensions? .

Tony and Bill's Max on Economy , ThirdWtry Dyck on Cuba PRESENT PROGRESSIVE

he November elections re­ record on women's rights, worker and "This vote represents a vital shift sulted in striking gains for immigrant rights and has the strong in the U.S. Congress towards progres­ progressives as well as the support of the Sierra Club and other sive Democrats," said Karen Dolan Tdownfall of outgoing Speaker of the environmentalists. Napolitano is also of the Institute for Policy Studies. "It House Newt Gingrich. All 55 mem­ a strong supporter of public educa­ 1s important to point out that Tammy bers of the Congressional Progres­ tion. Baldwin and the other new sive Caucus who ran for re-election • Charlie Gonzalez, a Democrat progressives in Congress won by im­ won their races (three members of from Texas' 20'h di!arict, has stood pressive mobilization at the the Caucus retired). for workers rights and equality grassroots," concluded Shelley The 55 winners included Lane throughout his campaign. He is a Moskowitz, Political Director of Evans, who won with 53 percent of supporter of public schools, immi­ Neighbor to Neighbor." Baldwin, for the vote in the hotly contested 17'h grant rights and equality for women. example, had 1,500 \'olunteers in the district of Illinois despite the enor­ • Tammy Baldwin, won in field on primary day." mous amount of corporate money Wisconsin's 2•d district after a tough The Progressive Challenge plans poured into his opponent's race. grassroots campaign. She has led the to work with the Progressive Caucus Other members were re-elected by fight on progressive issues through­ to invite this new members and other much higher margtns, including rank­ out her career in the \\1isconsin state returning members to join to caucus. ing House Judiciary Democrat John legislature, proposing bills on a range Work continues, as well, on mobiliz­ Conyers of Michigan, with 75 per­ of issues from living wage and work­ mg grass roots Progressive Challenge cent of the vote, Nydia Velazquez ers rights, to support for public edu­ forums. (D-NY) 83 percent of the vote, and cation and strong environmental pro­ In addition to the election of new Bernie Sanders (l-V1) 64 percent of tection. She has advocated a progres­ progressives, Americans had the plea­ the vote. sive tax system, universal health care sure of seeing the back of both Newt Fourteen new Members were and women's rights. She is also the Gingrich and Bob Livingston. More elected who ran on progressive plat­ first openly gay, nonincumbent to come, one hopes. forms. The 14 were gauged "progres­ elected to Congress. sive" by the Institute for Policy Stud­ ies after comparing their campaign literature and past activities with the Progressive Challenge "Fairness Agenda for America." On issues ranging from shifting budgetary pri­ orities from military spending and corporate giveaways to health care and education, to promoting worker and environmental rights, fair trade, and equality, these 14 candidates stood for the liberal values that re­ cent polls show most Americans embrace. The 14 new progressive members included: •Jan Schakowsky, a Democrat from Illinois' 9•h district, has long been an advocate for consumers, se­ nior citizens and women's rights. She has spoken out about human rights and demilitarization as well as sup­ ported campaign finance reform. •Grace Napolitano, a Democrat from California's 34•h district, served as chair of the Women's Legislative Caucus during her 6 years in the Cali­ fornia State House, with a strong

page2•Democratic Left• Winter Present Progressive by Chris Riddough . Social Security by Joe Schwartz

Living Wage in Detroit by Dave Green

Incarceration in DC "Michael Harrington was one of the most important figures in the by Bill Mosley twentieth century." -William Julius Wilson WATCH THESE PAGES FOR INFORMATION ABOUT VIEWING The Coming Recession Harrington and Today's Other America J by Steve Max F Corporate Power and Inequality The new film with Bogdan Denitch, Congressman Bernie Sanders, Our Person in Havana Francis Fox Piven, John Kenneth Galbraith, Rush Limbaugh, by Reg Dyck Senator Ted Kennedy, Jim Chapin, Robert Kuttner, Charles Murray, Robert L. Heilbroner, Joanne Barkan, Joseph Murphy, Bob Herbert **Music by Bruce Springsteen and The Adjusters!"* The Third Way by Jeff Gold TODAY'S OTHER AMERICA: "Michael Harrington was a moral gi­ Editors: Christine Riddiough ant." '99 Jeff Gold -Larry Brown, Tufts University Editorial Com1111ttee: Suzanne Crowell, "He had a lot of influence. All of it Bill Dixon, David Glenn, bad." Steve Max, Bill Mosley, -Irving Kristo/, A.E.I. Maxine Phillips, Robert Woodruff "He was the voice of America." DEMOCRATIC Fo1111di11g Editor: -Willy Brandt Michael Harrington (1928-1989) ERRATA Democratic Socialists of America share a vision of a humane interiutional social order based on equitable distribution of resources, meaningful work, a The fast cdiuon of DemocnJ oJtlre>< changes tn 180 Varick Sucet, New York. NY I 0014 [),... ""'" 141 i• pubhshcd by and content of Dm10rralir /,,,ft as we the Ocmocr:tuc S•>

Winter•Democratic Left• page 3 Crap Shoot Pensions or Social Security

JOSEPH M. SCHWARTZ

ocial commentators from the right to neo-Liberals claim that the Social Security system is in crisis. An Social Security is under honest look at the workings of Social Security reveals attack by the finance and that only minor tinkering is needed to preserve its investment industry. solvency through the next millennium. The main­ stream consensus in favor of overhauling the system is driven by conservative ideological preferences for all things "private" and political impetus behind both so­ and "market-driven," coupled with the tempting cash cow \\Tall cial insurance and quality, universal Street could milk by siphoning off public pension money. Nei­ public provision is the recognition that ther partial nor complete privatization of insurance against old a fully democratic society requires, in addition to civil and political liberties, age and disability is needed: Social Security continues to do an the equitable provision of those goods efficient job of insuring the population against loss of income needed by an individual to develop to due to old age, disability, or death of a family income-earner. the fullness of his or her potential. Barring a disastrous decline in economic growth, the public good The United States, being the most "exceptional" of political democra­ known officially as Old Age and Survivors and Disability Insur­ cies, has limited its social forms of ance (OASDI) could continue to provide our nation with social provision to public education funded security straight through the twenty-first century. in an non-egalitarian manner by local Social Security is under attack by and prime it for private schemes. property taxes, and old age and dis­ the finance and investment industry The privatization consensus has ability insurance. Public provision of so that a new, massive pool of capital solidified in part because of the de­ health care has been limited to the eld­ would be available-and at risk, in the dine of American liberalism as a erly and very poor. Until recent "wel­ stock markets. The recent bull mar- popular ideology. Few members of the fare reforms," some poor single par­ ket has been partly propelled by ents were subsidized to provide significant growth in privately­ in-home care for their infant owned, defined-contribution children. The mean-spirited, pension plans, driven some by means-tested narure of this Baby Boomers now facing an ac­ program allowed the Right cre­ tuarial need to consider their im­ ate a popular backlash of work­ minent old age or retirement. mg and middle-income people Since less than half of Ameri­ against AFDC and, to a lesser can workers have significant, extent, Medicaid. If the U.S. job-related private pensions, the joined other industrial democ­ securities industry must look for racies in providing universal a new pot-of-gold in the social health care and child assistance insurance system. Average ad- payments, or publicly-funded . . Social Security recipients. m1rustrative costs for private day care. we would never have pension accounts, including had as much of a "welfare "fees" beloved of the industry, run mainstream political class can defend problem" in the first place; lower-in­ from ten to twenty per cent of the the role of public goods in a truly come \\'Ork in the formal labor mar­ long-term value of the invested eq­ democratic society. Democratic social­ ket would cover medical and child care uity. In contrast, the administrative ists can coherently mount a moral, po­ needs. But. it has not bl!Cn enough for costs of Social Security come to only litical and economic defense of so­ the privatizers to force low-income 0.8% of the invested payroll taxes! So cial insurance. Not only as regards old single parents to search, nearly always a multi-prong ideological attack on the age and disability, but also public pro­ futilely, for private jobs which can pay Social Security system is required to ,•ision of education, health care, child for private child and health care. The scare and divide the U.S. population care and other basic needs. The moral conservative and neo-liberal

page4•Democratic Left• Winter privatizers are now going after pro­ cci\'ing Social Security payments in most need 1t are deemed undesirable grams which insure the broad major­ 1997, only sixty one per cent are re­ by insurers. Socialists have always sup­ ity of society. tired workers, seventeen per cent are ported collectJve pooling of risk, In an ideological climate where the sun•ivors of deceased workers, where possible, as an alternative to private provision and "the market" and twelve per cent arc the spouses unequal individual exposure to mis­ best provides all fortune or misery. goods, the Right bets The more that America will en­ moderate conser­ gage in collecr;lve am­ vatives and nee-lib­ nesia. It was the very erals still know that failure of Depres­ full privatization is sion-era markets to unpopular. They secure individuals would like to allo­ against risks of old HAS BEEN ESTABLISHED fOR cate, at minimum, age and disability that E~genia Victo~i~~b~ one or two pt.:r cent led to the creation of of the respective a collective insurance employee and em­ system. In 1935, this ployer payroll tax nation endorsed a so­ SfGNATIJRE of 6.4 per cent to cial contract that FOR SOCIAL SECUft an individually­ guaranteed that no owned equity ac­ member of society count. This would would experience a desperate old age. and children of retired and disabled necessitate gradually reducing guaran­ Even if individuals had the chance, workers. Ten per cent are disabled teed Social Security benefits to two­ or misfortune, to have been a low­ workers themselves. The advocates of thirds to three-quarters of their cur­ wage worker or to have suffered pre­ privatization dare not tell the public rent bare minimum levels. In an ef­ mature disability, society as a whole that their plan offers no method for fort to reinvigorate his pre-impeach­ would insure them and their depen­ guaranteeing younger workers disabil­ ment "triangulation" strategy of oc­ dents against severe immiseratton. A ity and survivorship benefits. cupring the space between New Deal strong social insurance system allows In reality, privatization would kill liberalism an

WinteroDcmocratic Left• page 5 of all retired Americans would live in privatization, and six moderate to lib­ every retired person, in 2030 there will abject poverty; today less than ten per eral members. These last defended the be only 2.4 working-age people per cent do so-compared with fifteen preservation of a universal social in­ retiree. Hence, the predictions that the per cent for working-aged individu­ surance program, but recommend Social Security trust fund will run-out als, and twenty per cent for children. some regressive revenue enhance­ in 2030. Sixty-five per cent of retired Ameri­ ments-such as delay of eligibility for Conservative privatizers conve­ cans depend upon Social Security for maximum benefits. Th.ree of these six niently underestimate the likely boost the majority of their income; half of were heads of unions, while another continued strong immigration will those depend upon the program for was Social Security Director in LBJ's give to the ratio of future workers to ninety per cent or more of their re­ administration. elderly individuals. The assumptions tirement income. driving the commission's report as­ Social Security does not guaran­ Demography and Growth swne a very modest flow of immi­ tee a life of retirement luxury. Its av­ Ideological scare-mongers cite demo­ grants to the nation-an increase in erage payment, indexed to inflation, graphic trends to talk about the fu- the labor force of less than 100,000 replaces only about per year. Yet since 1970, forty-four per cent of the net contribution of the average yearly sal­ immigrants to work ary-but close to ninety force growth has been per cent of a minimum­ closer to 300-500,000 wage earners yearly per annwn. Since 1970, take-home. Combined seventy per cent of U.S. with Medicare, it en­ population growth has sures that most of the been constituted by im­ elderly avoid the brutal migrants and their off­ poverty which visited spring. As of 1997, ten over thirty per cent of per cent of the U.S. Americans before So­ population has been cial Security payments born abroad, versus only were significantly in­ four per cent in 1970. creased, and perma­ This is the highest ratto nently indexed to infla­ since the immigrant tion during the Great boom of the early twen­ Society of the 1960s. tieth century. As the eld­ The decrease in the erly cannot emigrate as poverty rate of the eld­ easily as their children, erly &om thirty per cent immigrant populations in 1964 to Jess than ten tend to be dispropor­ per cent today serves as tionately younger than definitive proof that society as a whole. Thus, 'throwing money' at the one easy way to offset problem of poverty can the alleged future short­ reduce it. Since 1965, this nation has rure "collapse" of the system. Ac the falls in working age contributors to defended decent living standards for same time, they conveniently ignore the social security trust fund is to in­ the elderly, while increasingly victim­ other social trends cited in the report sure that immigrant worke.rs and their izing children, particularly those of which support the view that only mi­ children are well-educated, well­ poor, single parents. Today, over fifty nor tinkering, if any, is needed to keep rrained, and able to unionize in order per cent of Latino and African-Ameri­ the system sound. Currently, fifty-eight to make a decent Jiving-and increase can children live below the poverty­ per cent of the population is between their FICA contributions. line. the ages of 20-64, while only thirteen \'\'hile society may have to devote Most readers a.re aware of the per cent of the population is 65 and more of its GNP to the care of the imminent "graying of the baby boom older. But by the time the baby boom elderly and disabled, it is likely to have generation," which informs the report has retired in 2030, fifty-six per cent to devote fewer resources to the de­ of the government Commission on of the population will be between 20- pendent young in 2030 and beyond. the Future of the Social Security Sys­ 64, while almost twenty-five per cent While in 1996, twenty-nine per cent tem. The Commission consisted of of society will be over 65. Thus, if of the population was under twenty, seven conservatives who recom­ today there is approximately four and in 2030, under the demographic as­ mended either full or partial one-half working-age individuals for sumptions of the report, only twenty-

p age6• D emocratic Left• Winter four percent of the population will be eth·century stock market performance payroll truces. Simply raising the top under twenty. Lest one worry that such underpinned by 2.2 per cent average two Income tax brackets by five per ratios cannot be sustained by a mod­ annual real GNP growth. Yet, Right­ cent each would make up the bulk of eratdy prosperous society, remember ist predictions that Social Security will. the shortfall envisioned by the pessi­ that in 1965, the end of the post-war run out of adequate funds in 2030 mists. Another alternative would be baby boom, there were ninety· five assumes that twenty-first century to create a belated peace dividend. dependents--only 18 elderly but 77 growth will only amount to 1.4% an­ From 1976 to 1986, the United States children, for every 100 working-age nually. That could be true, but such summoned the political will to in­ individuals. • low growth rates would never sustain crease the proportion of total GNP the long-run bull markets which spent on defense by a whopping 1.6 Surplus privatizers claim will 'rescue' Social per cent. To achieve the same shift of The Social Security surplus is gener­ Security. GNP to Social Security, we could cut ated by the accumulated difference If one simply opts for the 1.7-2.0 the defense budget by twenty per cent between FICA taxes paid-in versus per cent annual real growth estimates and shift those resources to social in­ annual OASDI payments paid-out. of the more optimistic members of surance. The surplus is accounted for by cred­ the Social Security Commission, then Sources of public revenues wi//be iting the purchase of government the entire alleged short-fall in both needed to meer the challenges society bonds to the Social Security account . Social Security and the Medicare trust will shortly face in caring for aging In reality, these are only "paper obli­ fund would be eliminated. Btuiness baby boomers, and providing the qual­ gations" that the government suppos­ lf/eek made this point in a recent edi­ ity child care needed by parents who edly will "par back" to the Social Se­ torial opposing privanzation of an increasingly work full-time in the for­ curity system. Thus, conservatives are "essentially sound Social Security sys­ mal labor market. But let us be radi­ technically correct that this is an ac­ tem." The Twentieth-Century Fund cal pessimists: assume it will take sev­ counting fiction, as the "surplus" rev­ pamphlet, Social Sec11rity Reform, states eral decades to win progressive tax enues are actually spent as part of the that an increase in annual economic reform and expand democratic pro­ present government budget. Present growth of just 0.15 per cent per year vision of quality public goods. Can and future government spending of o\•cr the next thirty-five years \VOuld Soctal Security still be saved? Yes. these surpluses, be it upon infrastruc­ provide tax revenues sufficient to off­ Raise the cap on payroll-taxed income ture, education or health care, will set projected increased costs of both from the current ceiling of $68,500 sufficiently contribute to the lung-run Social Security and ;viedicare, mea­ to $200,000, and neatly one-quarter product!vity of the American sured as a share of gross domestic of the gap could be made-up. Incor­ economy so that future tax revenues product. porating the nearly seven million state will be able to fund future Social Se­ and local employees who presently curity obligations. Progressive Tinkering opt-out of the federal pension scheme, Most federal official have ac­ If the worst case scenario of would make-up another twenty per cepted ideological notions of govern­ privatization ideologues comes true, cent or more of the projected revenue ment expenditure as "unproductive." and American capitalism only grows gap. Increasing the rate of taxation on Conservatives rail against the Social at an annual rate of 1.4 per cent in high-income Social Security recipi­ Security Trust Fund because faith in the twenty-first century, net immigra­ ents-or abolishing the income cap, the future of Social Security implies tion drops, and society increases per could make up another fifteen to that public expenditure can help boost capita spending on children (my as­ twenty per cent of the short fall. future productivity. Now, of course, sumption, not conservatives), expen­ Investment of part of the Social investing these funds "privately" in diture on Social Security rises from 3.8 Security trust fund in the stock mar­ cotporate stocks assumes that com­ to 5.2 per cent of GNP by 2030. This ket, rather than solely in government pany profits will grow sufficiently over could be easily achieved by increas­ bonds, is very problematic. The return time to fund future retirement in­ ing the regressive FICA tax by 1.1 per on equity for any thirty-year period in comes. In reality, itJvesti11g the mrpl11s i11 cent on employers and employees, re­ this century averaged, in real terms, government bonds or corporate eqt1ifies in­ spectively. Seventy-five per cent of seven per cent versus only two and volves betting 011 ff/t11re economic growth. Social Security obligations could then one·· half per cent for more secure And all bets involve some risk. But bet met through 2071 . Of course government bonds. "Privatization" risk exposure would be far greater if there are more progressive alternatives through individually-owned stock ac­ every individual retirement income that could also close the gap. counts would be a disaster, from an was reliant upon luck at investing a DSA supports a return to the eqwty rmd efficiency perspective. But small, individual pot of private funds original Social Security proponents' a serious argument can be made that in share markets. vision that pay -outs would be dem-ed collective government investment in Predictions of long-run stock from progressive income cax revenue, corporate stock could help guarantee market growth are based on twenti- rather than from regressive, flat-rate conti.m1ed 011 page 19

Winter • Democratic Left • page 7 LOCALS IN ACTION

BvDAVE GREEN Detroit DSA

n November 3'd, voters in De­ wage ordinance. We repeatedly living wage coalition was able to 0 troit passed a living wage bal­ raised the issue of a living wage with split the opposition by going out lot proposition by a margin of 81 various union local presidents, and into the community and speaking to 19 percent. The labor and with representatives of the Metro­ with small business owners, point­ grassroots coalition that made this politan Detroit AFL-CIO, until a liv- ing out to them that the ordinance a success (including DSA) applied only to those firms do­ won through allying with ing busmess with the city in sma11 businesses against big excess of SS0,000 per year. ones, meeting and defeating LlvingWage Furthermore, we argued co the the arguments of the Cham­ small business owners that ber of Commerce, and enlist­ residents of the city who ben­ ing major political figures in Wins in Detroit c fi ted from a living wage the campaign. Along with the would be likely co ~pend that doorknocking and petition work that ing wage coalition was formed. The extra money in the businesses in these campaigns require. Detroit DSA was an active partici­ their communities, and that there­ The new living wage ordinance pant in the living wage coalition. We fore, small businesses were likely to requires all businesses receiving tax went out into the community to benefit economically from the liv­ abatements or contracts from the gather signatures for the petition. ing wage ordinance. city in excess of $50,000 per year to We donated funds for the public re­ Second, the living wage coali­ provide their employees with a "liv­ lations campaign for the ordinance. tion was able to prepare and respond ing wage" The ordinance defines a Most of all, DSA was well-repre­ to the arguments of the local Cham­ living wage as $7.70 per hour with sented at all of the meetings of the ber of Commerce regarding the ef­ health care benefits (100 percent of living wage coalition and argued vo­ fect of the li\"ing ·\\rage on employ­ the federal poverty level) or $9.63 ciferously for a reasonably low ment and taxes. per hour without health benefits threshold (i.e., contracts or tax Finally, the living wage coalition (125 percent of the federal poverty abatements of greater than $50,000 was able to get the support of the level). Violators are subject to a $50 per year) and an enforcement pro­ Mayor of Detroit early in the cam­ per day fine for each day the viola­ cedure for the ordinance. paign. As a result of these factors, tion continues. Violators who are Several factors contributed to there was no significant campaign fined three times within a two-year the success of the living wage bal­ against the ballot proposition. period are barred by this ordinance lot proposition in Detroit. First, the from bidding on any city contracts for a period of ten years. Employ­ ees who are affected by a violation of the ordinance may file a com­ plaint with the city purchasing de­ Author! Author! partment, which is required to in­ Are you a DSA member who has written a book? If so, vestigate and remedy the complaint we'd like to know about you. Once again in 1999 we'll be pub­ within 90 days. If the complaint is lishing our Spring Books issue. We'll include listings of books not resolved to the employee's sat­ by DSA members and reviews of several books. isfaction within the 90-day period, If you'd like your book considered for review, plea~e send the employee has the option of us a copy (or ask your publisher to send us a review copy). If bringing an action in the Wayne you want your book listed, please send us information about County Circuit Court to enforce the the book, including title, publisher, cost and a brief synopsis. ordinance. Send information to Democratic Left, attn: Jeff Gold, c/o The Detroit Local of DSA was DSA, 180 Varick St 12th Fl, New York, NY 10014. instrumental in passing the living page8•Democratic Left• Winter DC/MD/ NOVA DSAJOINS FIGHT as the home of B Y B ILL MOSLEY would-be presidential growing coalition, which in­ assassin A cludes DC/~ID /NOVA DSi\, is J o h n intensifying its fight against plans to Hinckley build a private prison in a low-income and the neighborhood of Washington, D.C. city's sew­ The prist>n, to be constructed and age treat­ run by Corrections Corporation of mentplant. .\mer1ca (CCA), a private, for-profit A prison penal corporation, would be located -far from in the predominately African-Ameri­ spurring can neighborhood of Oxon Cove io economic Ward 8, the city's poorest political di­ develop- vision-which lies across the Anacoscia ment as River from the famed museums and proponents claim - would drive de­ lobby to impose harsher sentences on monuments. Yelopment from the ward, which bas more offenders, and will make it The prison issue stems from fed­ a population of over 60,000 but lacks harder to promote alternatives to in­ eral legisla­ a single su­ carceration and to address the under­ tion passed permarket lying causes of crime. last year that or restau­ No public hearing on the prison was supposed Fighting rant. The has been held, nor have alternative to revitalize coalition sites inside or outside the city been the District, has coun­ explored. The coalition has demanded but in fact Incarceration terparts that the local government involve citi­ stripped DC's across the zens around the city-and especially elected gov­ city line in those in Ware.I 8 - in the issue, and ernment of in DC Maryland that the social, economic and environ­ most of its where c1t1 mental impacts of a prison be con­ authority. One effect was the closing zens of Prince George's County are sidered. of Lorton Prison, the existing city fighting the proposal un similar DC/MD/NOVA DSA joined the prison located in suburban Virginia, grounds. Prince George's is a major- effort, frotn a conviction that until the and its replacement by a private facil­ 1t:y black county with aging, less-af­ day we abolish incarceration alto­ ity. But while the federal government fluent suburban neighborhoods bor­ gether, prisons shollld be public, nor started the process, the current city dering the District. private, facilities. Our opposition to council eagerly collaborated-even In addition, CCA has a poor the prison also ties into DSA's national picking the site. record running its existing private Prison Moratorium Project, which The Ward 8 Coalition, the um­ prison in Youngstown, Ohio, which challenges the current national binge brella group fighting the prison, ar­ has been the site of 44 assaults, two of prison-building and promotes con­ gues that the ward already has more murders and six escapes. This shoddy structive alternatives to incarceration. than its share of undesirable facilities. security, as well as the gassing of pris­ For more information about the It is the site of St. Elizabeth's Hospi­ oners, has led state legislators to call fight against the D.C. prison, call DC/ tal. - the mental facility best known for its closing. MD/NOVA DSA at (202) 483-3299. But perhaps most Bill Mosley is a leader of the DC/MDI pernicious is the likely NOT"/l DSA and an editor of DL. tendency of a private prison to generate addi­ tional incarceration. If there are profits to be made from locking SOLIDARITY people up, the prison GREETINGS owners, who already have made campaign contributions to city of­ Nassau County DSA ficials, certainly will

Wi nt cr• D emocratic Left • page 9 Socialists in the Coming Recession

BY STEVE MAx

he fundamental socialist critique of capitalism, while always valid, will soon be relevant to a larger audience The New Re levance of the than it has been in recent years. While many social issues T Socialist Critique have arisen over the last decade, the apparent "triumph" of free market capitalism has severely limited opportunities for DSA to present an appropriate analysis that would distinguish it from the tributed. They have not. It took until broader liberal-progressive-labor viewpoint. To be sure, prob­ last year for average real family income lems of unfairness, inequality and the unjust distribution of the to get back to the pre-1990 recession level. In 1996, real median family in­ mountain of newly created wealth intensified, but opponents come was still $1,000 less than it had claimed that these were merely matters of fine-tuning a system been in 1989. And in the last decade, that, if anything, was working too well. The global economic the share of the nation's wealth held news of these last few months mean that the national debate will by the richest one percent of house­ holds rose from 37% to 39'Yo-while Le very different as we approach the turn of the century. the share of the middle income fifth lt is beginning to appear that the and real wages have been rising since dropped from 4.8% to 4.4%. Never­ economic collapse now gripping much 1994-after thirty years of decline. In theless, employment and real wages in o f Asia and South America and Rus­ a reversal of the usual pattern, the the 90's have been far better that in sia will spread to the United States in the 70's and 80's. As a bonus, govern­ the coming year. External agencies ments at all levels are discussmg what such as the World Bank and Interna­ to do with surpluses. tional Monetary Fund have pushed these econo mies into a form of Economic Crisis "pure" capitalism lacking all social and So, if conditions are improving, what financial regulatory restraint. To the may go wrong? Business Week asked if extent that this corporate agenda is "the global economy [has] come un­ implemented in America, we will be done? Is the American model of free­ led down the same path. But even market capitalism, the de-facto ideol­ without further moves in such a di­ ogy of the post cold-war period, in rection, severe problems lie ahead for retreat? There are many messages in our economy. In reporting a dramatic the recent volatility of the stock mar­ downturn in corporate profits, a re­ largest rate of wage increases began ket, but the most important may be that cent B1uiness Week worried that '~t this going to the lowest paid workers in fundamental assumptions about the point, recession talk is far too hasty . . 1996. Home ownership, claimed The future of the American economy haYe . However it is clear that the economy New York Time;, rose to an all-time been altered by the crisis tn Asia and is getting hammered on a number of historic high last year-though a huge Russia." That publication is optimis­ fronts that are mterrclated and have gap remained between the races. tic that the crisis can be solved by a recently begun to feed on each other." Poverty rates in 1997 dropped sig­ program of interest rate and tax cuts, nificantly in the Black and Hispanic while keeping markets open. But is that Prosperity and Inequality communities, more than in white enough to avert disaster? The last three years have been remark­ households-with rising incomes re­ Not if you consider chat potential able. \'{'e are in the longest peacetime ported in families headed by women economic disruptions are a function of expansion in American history. \Y/e be­ of color. The biggest percentage de­ the contradictions of capitalism that gan the decade with a major recession, cline in unemployment has been socialists have understood for genera­ but since then real profits have risen among black teenagers. tions. As happens periodically, the sys­ br 70%. Inflation is now at a low 2%, This is not to say that life has been tem expanded so rapidly, while wage unemployment as offidalfy recorded is easy for working people and the poor, increases have been limited, that it has at a historical low of 4.3%. Involun­ or that the gains from rising profits produced far more goods than can be tary part-time employment has fallen, and productivity have been fairly dis- sold. The world is facing major indus- p a g c 10 • D c m o c r a t i c L e ft • W i n t e r regulations, no environmental laws Democratic Left Receives Award and weak or nonexistent labor rights. ill Dixon's cover story for DL, M.A./. Ties (Spring 1998), Saying that "1be global capita.list sys­ B won First Place in Project Censored's Top Ten Most tem, that has been responsi9le for our Censored News Stories. Project Censored, a media watch­ remarkable prosperity, is coming apart dog and research group at Sonoma State University in at the seams," the world's best known Ca Ii for n i a , each year assembles a na- investment manager, billionaire tional panel of media experts George Soros, in The l'f/all Street Jour­ to select the most important nal, compared the dynamic to "a gi­ stories that the mainstream gantic circulatory system" that had media did not, for whatever pumped capital to emerging foreign reason, see fit to print. The markets and was now reversing its stories will be published flow. As the flow reversed, misery together in a book, Cen­ hammered the workers in the former sored 1999, published by Asian tiger states. Seven Stories Press. The David McNally, a Canadian pro­ lucky authors will be feted fessor of politica.l science writing in at an awards dinner in the independent socialtst Mo11th!J Re­ New York City in April. iiew, described the layoffs and hunger Bill Dixon, a mem­ that resulted because "overall more ber of DSA's National than $600 billion has been wiped off Political Committee the balance sheets of the region's stock markets." ~ »1u.1JD(.ON ov.il'IG Mo1-1 from the Midwest, is a The reason, says McNally, is "The Mf.i:u.i.e. 11-1 ~n~e~\roduced \~. frequent contributor to . ans "'' uov~1 enormous capital flows into Southeast j\.r!lCtlC bst\lreand.con {or the 1' DL . C urrentI y, he .IS Asia in recent years that have contrib­ ano~~ra~ronY"' - ~kvestrnen keeping his Obviously no... eernent t 0 [ \ • I uted to a huge build-up in productive ii\ateral ...? ub\ish a vast~ t '\ sharp reportona eyes S'the M,A.1 t~in~nvestn1ent atains on President Clinton's capacity-much of which can not be tection, (or orei child care initiatives. profitably utilized ....Auto, steel, elec­ See future DLs. tronics, computer chip and fiber op­ Way to go and Congratulations, Bill! tics plants have been built pell-mell." McNally added that in the global au­ tomobile business, "excess capacity today is around 21-22 million cars. trial overcapacity and rising poverty productive capacity of the economy That's roughly a 36 percent overca­ in the midst of plenty. The difference outran the ability of consumers to pacity relative to world markets-the between this and past recessions is that absorb the goods pouring out of the equivalent of 80 efficient state-of-the­ so far the United States has succeeded factories." The cardinal rule of capi­ art plants." Which makes one wonde.r io largely exporting the problem to talism is that the system must always what the huge t:esearcb and market­ Asia. But there it cannot long remain. expand. It must grow and constantly ing staffs do at the ma1or car compa­ Previous economic expansions increase output. The reason is that nies that have so overbuilt. Prom the such as that of the 1920's created in­ while it produces great amounts of perspective of Month!J RevieUJ capital­ vestment booms here in the U.S., and wealth (profits up seventy percent ism has its own logic, which in this the current one is no exception. The since 1990), the wealth is only of use situation caused investors to pour in boom of the 20's en

W i n t e r • ~e m o c r a t i c L e f t • p a g e 11 Our Person in Havana

BvREG DvcK

ix weeks in Cuba didn't make me an expert, but it did give me a story to tell. Here are some reflections after a tour Cuba Today Through S organized by Pastors for Peace, a program of Global Socialist Eyes Exchange and the University of Havana, and week on my own kicking around Havana. My Spanish-language tutor, a markets are what impinge on the The local leader of the Women's Fed­ young woman from a small rural Cuban system now, more than at­ eration added that through these town, "in the real Cuba," a govern­ tempts at overthrow from the U.S. committees, women and families re­ ment official told us, was in Havana The Cuban government in fact courts ceived support. She specifically cited to attend the university. She was pas­ foreign firms. The acting director of problems of abuse and other diffi­ sionate about Cuba. She talked the North American D1v1s1on of the culties where the committee could 10- warmly about the willingness of Cu­ Foreign Ministry told us: "We are ter vene. A neighborhood Night bans to help one another, their sense Marxists; we believe in evolution. Watchman had a harsher view. He of solidarity. On the other hand she The world is different than it was thought that the committee was very regretted the controls Cubans endure eight years ago; 'that world won't intrusive, especially in the 80s, but during what is known as the "Spe­ come back. Cuba must change, yet it were less strict now. Though be still cial Period." This is an economically must maintain its values." His off­ said that CDRs were a good idea. difficult post-Soviet era of tightened the-cuff list of essential values in­ U.S. embargos and price declines for clude health care, education, nation­ Is This Why We Fought? Cuban staple crops. alism and the absence of drugs or Experiments imply the possibility of general corruption in government. failure, and Cuba has had its share. He sounded more social democrat Right now the biggest and riskiest than Castroist. He added that Cuba gamble is the opening of Cuba to was experimenting with selective in­ limited foreign mvestment and tour­ vestment, specifically to develop ism. The U.S. dollar has been legal­ tourism. Later, other Cubans talked ized and an almost dual economy has about the threat to solidarity from been established. Workers paid in tourism and overseas mvestment, and dollars are the ones getting ahead fi- the materialism that it's bringing. Solidarity or Surveillance? I was sitting on the front steps when a group of neighbors gathered across the street. They talked for about twenty minutes, applauded each other, and then moved apart. The owner of the house in which I stayed came over and explained, first in Spanish then in halting English, that these neighbors had just had a meet­ mg of the Committee for the Defense of the Revolution (CDR). Every The slogan Socialistno 0 M11erto neighborhood has one, and the street "Socialism or Death," doesn't exactly caucus was, according to my land­ fit the general sense of the land in lord, about one of the men of the Cuba today. More common was "Be­ neighborhood being so overworked lieve in the Revolution," softer and that he didn't have time for his fam­ maybe less confident. Perhaps be­ ily. Apparently the need for a younger cause foreign · capital, tourism and CDR leader was also on the agenda.

page12•Demo cratic Left• Winter I met: What happens after Fidel? The answer was that many would be sad, but life will continue. Structures are in place, and younger leaders are ready to take over. lt won't be the end of the revolution. During my visit, Castro flew to Jamaica, where an English translation of his speech in Kingston was trans­ lated in a tv broadcast. He empha­ sized Cuba's solidarity with the world, as opposed to the is'olation the U.S. tries to impose-which reminded me of the now long history of explod­ ing cigar assassination plots and the hostile expatriates in Dade County. Fidel told the Jamaicans, "We are too rich, not in consumer good, but in ideals, in feelings, in commitment to justice." Is he right? I missed my own flight out of Havana and had to spend a stopover night in Cancun, that pocket of exclusive tourist wealth and foreign investment. This .Mexican resort was chock full of bill­ board advertisements, capitalism's own form of revolutionary sloganeering. Havana had been the "Las Vegas of the Caribbean," with its Mafia-built hotels and play­ grounds for the rich. The splendid but crumbling architecture speaks of nancially. This caused an older man, come. But life is still hard for many. those days, and the colonial times be­ who had been in the military, to ask The hope is that the gap between the fore that. Is that what Cuba will re­ "ls this why we fought the revolu­ U.S. dollar and the peso, formerly at vert to? Does Cancun offer a vision tion?" A government official told me 150 to 1, now at 19 to 1, will narrow or a warning? The concern of most that the Revolution was utopian, and so that government salaries will be Cubans I spoke with was how to things didn't turn out the way they stronger. Will solidarity stand the maintain values of equality and soli­ expected. He's concerned about the strain until this hnppens? darity in the face of changing eco­ younger generation and about what nomic conditions. will happen to the country's ideals. After Fidel The Cuban experiment continues A journalist from Radio Havana One of the surprises of I Iavana to evolve in a global context. We need (www.cubaweb.cu) told us that a per­ was the absence of pictures or stat­ to learn from the strengths of the ex­ son selling pizza on the street could ues of Fidel-as everyone informally perience, such as provision of uni­ make more in a day than he makes in calls Castro. In tourista areas there versal health care and a commitment a month in journalism. Taxi drivers were endless posters and t-shirts of to mass literacy. \X'e also need to con­ make more than doctors. J.\ Cuban Che Guevara, who has become, as sider what socialists always used to scientist, friendly with a couple from one associate commented, sort of1a refer to as objective conditions, in our group who wanted to treat his .l\lickey Mouse emblem of the revo­ constructing our own visions of a family, could not recommend a local lution. Busts of Jose .Marti-intellec­ just society in the context of post­ restaurant. His take-home pay of tual, poet. revolutionary and father colonial oppression and poverty. cwency dollars per month preclud~d of the country, were in from of ev­ such Juxunes. True, education and ery primary school. But no Fidel. Reg Dyck, De111ocratic Socialists of health care arc free, ration booklets Now that doesn't mean that Castro's Central Ohio, leaches at provide for many basic needs very presence isn't fdt, which prompted Capital University in Co/11mb11s. mcxpenSl\'d}, and rent is tied to in- my question to almost every Cuban

Winter•~mocratic Left• page 13 The Coming Recession/ continued from P91f 11 scramble for market share," says ter and longer lasting solution is to suburbs, real-cost pricing of automo­ McNally. take advantage of the fact that, with bile use, and alternative fuel vehicles; so much money looking for invest­ Building affordable in-fill housing in Overcapacity ment opportunity, we could com­ the cities to reduce metropolitan Recently, the Business Section of The pletely rebuild our economy on an sprawl and commuting. In rural areas New York TiT11es ran a headline: "Capi­ environmentally sustainable basis. it means developing wind and solar tal Spending Takes A Break. Asia Cri­ That means an overhaul of our older power, as well as bio-energy crops and sis and Overcapacity Threaten Pillar housing stock with new insulation, incentives for organic farming. It also of Growth." Louis Uchitelle, that windows and other repairs that make means expansion of recycling of con­ paper's most farsighted economics it cheaper to heat and to cool. It means sumer and industrial products, and writer, quotes a Chrysler spokesper­ refitting public buildings and facto­ even a new system of Green taxes that son saying, "Until we see that more ries with high-efficiency motors and discourage waste, along the lines of demand is likely to occur, we are not equipment that uses less electricity; the Netherlands Green Plan. Jobs will going into another cycle of capacity Improving public transportation be created by some of these innova­ expansion." It is entirely likely, there­ within cities and between cities and tions, and a sustainable alternative to fore, that a crisis of overproduction will set in here, made worse by the inability of industry to export to the I PLEASE POST & DISTRIBUTE !~--. more depressed parts of the world. It I should be noted that Uchitelle, who is usually astute, balances the general JOB OPENING gloom by speculating that "Despite National Director these hits, the U.S. economy appears Democratic Socialists of America (DSA)-a national multi-is­ to be strong enough to stay out of sue political, activist and educational non-profit working for recession for now, thanks to robust social and economic justice. consumer spending." Responsibilities Perhaps because, as George Soros Manage a 3- or 4-member team, based in NY, responsible for observed, "The Asian crisis reversed fundraising and membership development and youth orga­ the direction of the flow... Capital nizing. Manage and administrate mail and phone fundraising started fleeing the periphery. At first, programs, bequest and major donor programs. Work with vol­ the reversal benefitted financial mar­ unteer leadership to develop and implement political priori­ kets at the center. The U. S. economy ties. Maintain ongoing contact with locals. Direct production enjoyed the best of all possible worlds, of national newsletter and other publications. with cheap imports keeping inflation in check and sending the stock mar­ Qualifications ket to new highs. Yet there comes a Management and fundraising experience. Good organiza­ time when distress at the periphery tional, public speaking, communication and writing skills. Com­ cannot be good for the center." The mitment to social and economic justice. Sense of humor. We key idea here is the reverse direction are looking for a dynamic, energetic person with excellent of the flow of money. Remember .that people skills who is able to travel, someone who can articu­ wealth, capital, has to be invested late a vision that speaks to all the diverse groups that make somewhere. Capital is now returning up our current political universe. to the U. S. from Asia, Eastern Eu­ Benefits rope and South America, but can it Movement wages, health care and generous vacation pack­ be invested here? Can Americans pur­ age. chase the output of still more indus­ tries and service companies in ways To apply that will be profitable to their owners, Send or fax cover letter and resume by February 28, 1999 to in light of global overcapacity. Search Committee, Democratic Socialists of America, 180 A dramatic rise in wages here and Varick St. 12th Floor, New York, NY 10014. Fax: (212)727- around the world would help tempo­ 8616. rarily, but the tendency of capitalism is to cut wages in hard times. Franklin * The Democratic Socialists of America is an Equal Opportunity/ Roosevelt and, oddly, Henry Ford Affirmative Action employer. Women, people of color, gays and understood why this was wrong, but lesbians and persons with disabilities are encouraged to apply. they were practically alone. A far bet- p a g e 14 • D e m o c r a t i c L e ft • W i n t e r oi.pitalism may have a chance to de­ would keep unemployment and reces­ raise wages. This will mean risking a ,-eJop. sion from deflating the Wall Street bal­ rising budget deficit and even some \V.le must always remember that loon. Working people have benefitted inflation. These are the two mam Re­ our coming economic condition dem­ from the Peel's divided loyalty, but publican hot buttons, even though onstrates that the real problem is not political pressure may yet push the Fed they may be necessary-within lirnits­ too few resources, but too manr It is in the wrong direction. to get out of a recession. The worst only the political system that prevents Anti-worker ideology is now the idea will be to insist on balancing the the movement of resources from biggest political threat to the economy. budget when more spending is needed those who oym them to those who Business lf7eek quoted government data to keep the economy moving. The need them-and political systems ca11 from "20,000 companies showing that second thing the Democrats need, be changed. earnings are in a decline that is already should they ever turn slightly from the close to the one that occurred in the Robert Rubin/D.L.C. corporate The Fed l 990-91 recession. The main squeeze worldview, is a popular understand­ No on is talking about it, but there 1s on earnings is from higher labor costs ing that these kinds of problems origi­ clearly a change of thinking at the that are outstripping firms' ability to nate with corporate control of the glo­ Federal Reserve Board. Back in the raise prices." With profits slowing, bal economy. DSA needs to help cre­ '70's and '80's, the bankers were con­ corporations are already calling for ate a climate where that is the princi­ vinced that if the unemployment rate lower wages, higher unemployment, pal message. fell below 8% it would bring the di­ and austerity in government spending. saster of rising wages and inflation. If allowed, corporate America will try Opportunities for DSA Whenever unemployment dropped, to raise their bottom line even it means DSA clearly has no vested interest in the regional banks would deliberately sinking the economy. a domestic American recession. In slow down the economy to create If recession does come, the na­ fact, economic upturns have often higher unemployment. They under­ ture of the political fight changes, but been fertile periods for progressive stood all too well the chilling effect not that much. The Democrats may action. However, if the worst happens, on worker militancy of large numbers fall mto a trap. If they take credit for we need to consider those that have of the unemployed, hungry for jobs. the good times, then they will ha,·e to not yet benefitted from our current Now, with recorded unemploy­ take the blame for the bad times-un­ economy. ment just above 4%, the Ped is doing less two things happen. The first is One way is to contmue the cam­ the opposite. They keep cutong the that they don't give in to the Right paign to raise the Minimum Wage, interest rate to speed the economy \\ling, and that they create programs which is still a poverty wage. The other along. They made three cuts last fall that can lower unemployment and co11ti1111ed 011 page 21 and it has been working. W'hy did the Greenspanites ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ change their minds and de­ cide that low unemployment and high wages aren't so bad af­ ter all? One can only guess that it is because stock market specula­ tion has become so important to the economy, and to the banks themselves, that the Fed decided that employers could put up with higher wages and, in the last six months, falling profits. This t..- w i n t e r • D c m o c r a t i c L c f t • p a g c 15 The Third Way/co11ti1111ed from page 23

new, with the IMF, MAI and NAFTA four-fifths of huma~t}', control quar­ t10nally very pragmatic in government, really setting the parameters for our ter of the world's e'conomy, but em­ but highly ideological in manifestos. collective global future. The Third ploy less than a third of one percent Prune :Minister Blair's Third Way both Way doesn't sufficiently challenge that of the earth's population-only 18.8 rejects the nev: Liberal Right, and the order.'' Chris quoted WI'O Chairman million people." DSA's role, added old state intcrvenoorust Left-but it Robert Ruggiero's comment that Riddiough, has been "to incubate a is still very ambiguous since Blair says 'these institutions are writing the con­ domestic coalition in the U.S. to ad­ he is still a socialist.'' stitution of a new global economy'. dress this imbalance of global power, Senator SalVl noted that "Euro­ Riddiough then analyzed the U.S. po­ which is demonstrated each day by peans, at least, seem now to trust par­ litical scene, in this global context, child laborers in Haiti or El Salvador ties from the socialist tradition with bemoaning the weakness of the Left, working for Disney or Nike, or by the managing this next period, or at least with "the national dialogue mostly Indonesian workers made jobless by blunting the effects of the new global talcing place between the Right and the the IMF's Structural Adjustment pro­ order. That's why 13 of 15 European Center. Clinton's role has been to en­ gram." countries now have social democratic courage the Center to move ever­ Riddiough said that behemoth governments. In Italy we have real­ closer to the Right. Our President has cransborder mergers like AT&T with ized this objective with the Olive Tree pushed NAFTA and Fast Track, sup­ British Telecom, or Damiler Chrysler, Coalition, and other parties mostly ported the MAI, and sought more "beg for a transbotder response from outside the socialist tradition, such as funding for the IMF. Third Way is just labor and the Left. We need to pass environmentalists and social Chris­ a tired old corporate way. DSA sup­ the Corporate Code of Conduct, the tians. However, we do need to make ports a Better Wf91, a global dialogue Earth Charter promoting fairer trade alliances with other political forces in that links parliamentarians of the Left, and sustainable development, ratify Europe and elsewhere. This is particu­ community activists and Non-Gov­ the Universal Declaration of Human larly important since the two biggest ernmental Organizations working Rights-which this year is 50 years economies, the U.S. and Japan, don't against the untrammeled rights of old and still not rntified by the U.S., have socialist parties that can realisti­ corporations to divide and rule. DSA and contains many international labor cally obtain power in the short term-­ though I have to commend DSA for its efforts for forge coalitions with emerging social movements." Doug Henwood, economist-edi­ tor of the T..eft Business Observer, con­ fessed to being "pretty confused by this Third Way stuff, since I believe Clinton and Blair to represent a sort of elevation of the Reagan-Thatcher model, rather than any kind of depar­ ture from it." Henwood questioned the prevalence of the term 'civil soci­ Eurosocialists, journalists, and DSAers assess Third Way. ety' that permeates much Third Way dialogue, and "was currently fashion­ tries to link the U.S. Congressional standard provisions, as well as the able among philanthropists and pun­ Progressive Caucus to parliamentar­ Right to education." dits, and some liberals." Hilary ians of the Left in other countries." Clinton's "Three Legs" notion, to Riddiough quoted an Institute for ABritish Initiative Henwood, came down to "business, Policy Studies report: The top two Riddiough passed off to the Italian which is all about money, state­ hundred global corporations account Senate Majority Leader, Cesare Salvi, which is mostly about money, and civil for an alarming share of the world's of the Party of the Democratic Left­ society-which is supposed to be an economic activity. "Of the 100 larg­ Olive Tree. Senator Salvi reminded us exception to the rule of money. Wax­ est economies in the world," noted that "Western recipes for market ing philosophical, Henwood traced Riddiough, "51 are corporations and economies and privatization are de­ the roots of civil society~ a term back only 49 are countries. Wal-Mart, the monstrable failures in Asia and Rus­ to Hagel, "who didn't think it was a Number 12 firm, is bigger than 161 sia." In fact, Salvi described the cur­ very pretty thing, a poor spectacle of countries, including Poland, Israel and rent Third Way discussion as '1inked extravagance and want, a domain of Greece. The biggest 200 companies to the British political culture, which capital and class divisions... social po­ have twice the economic clout of in the Labour Party has been tradi- larization'." Like Hagel, Henwood pa g c 16 •Democratic Le ft • Winter § I Q a believed civil society, as described by be afraid of using the words social­ and Clintonism," he added, " are ob­ Third Way proponents to be "too ism and capitalism any more. Every­ sessed with the sex life of the dominated by money and the market, one knows thar rhe world economy underclass, as if the main problem of protestations to the contrary." could implode, but we on the Left are society was that the poor don't oper­ As for the global economy, somewhat bereft of a positive agenda. ate in a moral manner." Ending 'wel­ Henwood was skeptical that the U.S. Simultaneously, I've never seen a fare as we know it', to Hitchens, with version would still be so widely ad­ population so demobilized or despair­ its various racial code words, "forces mired by the powers-that-be. He ing." Henwood quoted pollster Stanley someone into employment with Tyson quoted Treasury Secretary Robert Greenberg's survey reveal10g that Foods for low wages and high physi­ Rubin's comments about the Asian 'only one 1n ten Americans trust their cal stress, with welfare-to-work pro­ and Russian economic crises as the friends, let alone political parties, grams financed by taxpayers acting in most frightening in fifty years. Unions or government'. effect as employment agencies for Henwood also observed that "US. cheap labor. If unionization is seen economic performance over the last Lies About History as a remedy by these workers, the glo­ decade is not encouraging. We've been Roguish and entertaining journalist bal economy is cited with consequent in the weakest expansion of the ten Christopher Hitchens, of The Natian export of jobs, or alternative workers or so since World War IL Levels of and r 'anit:;· Fair, thought the Third Way easily available as substitutes." real capital investment, not just paper reminded him of the "End-of-Ideol­ Hitchens said "the circle is complete movements in mutual funds or other ogy schemes of Daniel Bell, and oth­ with the large campaign donations instruments, is pretty mediocre by his­ ers like Francis Fukayama-who just made by firms like Tyson to the torical standards. Average American recanted his end-of-history /ideology DNC." incomes are just barely returning co thesis by acknowledging that 'untram­ Chris Hitchens thought that new their 1989 levels, in a country with one meled market liberalism didn't take in technologies, which "pose something of the largest ratios of pover[) and Asia, or European Russia'." of a challenge for socialist or collec­ low wage labor of the OECD nations. Hitchens was skeptical about the tivist ideas," have potentially libertar­ Profits have been up, and the stock Third Way as a future path. He saw it ian and border-shattering possibilities. markets, but even by orthodox eco­ as part of a trend to "sequester poli­ Hitchens thought it interesting then nomic standards the U.S. 1s no great ocs bra new class of managerial-pro­ that Third Way advocates say so little economic shakes." fessional intellectuals, whose main aim about someone like Bill Gates, who Henwood considered the lrnpli­ is to depoliticize society altogetber... to wants to monopolize new technolo­ cations of the freer movement of rake politics out of politics." He elabo­ gies, or, like Clinton, advocate the V­ capital, an issue the Third Way panel­ rated by observing that "the Third Chip and othet cyber-censors. ists at the "official" sessions skirted. \\7ay advocates tell a small lie about As for globalization, the recent He cited business press reports of history. It must be believed that all that obsession of Left and Right, Hitchens discomfort with these capit.aJ Hows, was wrong with rhe British Labour derided the Third Way as nothing new. which to the Left has meant down­ Party and d1e U.S. Demo.cratic Party "We don't have a global society," he ward pressure on wages in many was that they were too left wing, too went on, "we live in the same economy places, and, domestically, tremendous soft on the working class, too anti-rac­ as Nike workers in the Third World, consumer borrowing to keep the U.S. ist, too spendthrift on the poor. I don't but don't live in the same society. This mass consumption economy going. remember when this period actually is the great opening for the Left in "Capitalism, or at least the bare knuck­ took place," he caustically observed the world: We need to be able to cre­ les variety of it," observed Henwood, to much laughter. "One is forced to ate the space, actual and political, that "is in disrepute m many pans of the renounce something that never hap­ allows the objects of the world world right now, if not here." He be­ pened." economy to at least begin to act." moaned the lack of inspiration on the Hitchens thinks Third Way poli­ Hitchens went on to call Russia "a broad Left: ''.Aside from repeating bro­ ticians "morally authoritarian; a dis­ giant disastrous experiment that West­ mides about restoring the Welfare tinctively prissy and bullying attitude ern politicians, some present across State, of reviving uruons--or creat­ is to be found in both New Labour the park today, wouldn't dare try on ing them in rhe US., we should not and the DLC Democrats. "Blairism their own electorates."

Winter• Democratic Left • page 17 of raising taxes [to finance such pro­ among others. Io China it would dis­ P.M. Improvises grams]." place 300 million people along the Philippe Sands, professional of inter­ Sands noted that if there was any eastern coasts. We need to connect the national law and a Blair advisor, ar­ theme to this summit meeting, it was interests of those states with non-state rived from the official proceedings ''We've created international institu­ advocates of environmental health with news that the Prime Minister re­ tions in the 40s and 50s for a world and sustainable develo·pment." ally didn't know what he was going to that has changed dramatically; more Sands would like the Left to fo­ say to Clinton ten minutes before their states, more issues, new problems and cus on the need to bring in more non­ public meeting. Blair's other advisors actors. Clinton, of course is unable state actors, like environmental orga­ urged him to avoid talk of the Third this address this well given his awk­ nizations, into the discussions of glo­ Way, which was the putative main sub­ ward relationship to global agencies bal organization. He recounted small ject of the conference, "then advised like the U.N., and the vested interests successes on environmental issues, the P.M. to at least limit his Third Way of U.S.-based multinationals unenthu­ where NGOs were able to intervene talk to domestic issues only." Blair's siastic about submitting to global rules to at least begin the process of reduc­ sometime advisor, Tony Giddens, of conduct." Despite that, at the NYU tion of greenhouse gases in the envi­ tried to define the Third Way during meetings Sands did think that ronmental area, and outmaneuver the introductions-with mild success. "Clinton has gone as far as I've ever U.S. to obtain higher restrictions on After that, Sands observed, "President seen him go on global climate change COZ levels. Clinton posed a very astute question and the need to address it." Hitchens to the global leaders present: "How offered a terse response: "Gore 2000." State Adors would the Third Way approach allow Sands responded by observing Ian Williams concluded the counter­ you to solve your most pressing do­ that the environment is one area that pane!, which was staged with the as­ mestic problems?" Blair answered "doesn't fit neatly into a Left-Right sistance of the Center for European with investment in education and hu­ matrix. In the U.K., the privatization Studies at NYU. Williams noted that man capital. Italian Prime Minster of the water companies has led to far while there are all -sorts of new state Prodi punted the question, and the greater accountability by utilities in and non-state actors in the world, old Bulgarian President said that 'his terms of their environmental respon­ actors like the Dole Company can still country has so many domestic prob­ sibilities, opening their books, etc. overturn the complaints of a dozen lems, he couldn't possibly identify "Globally, as lawyer for a coali­ banana-growing poor countries at the one'." Sands continued, "Clinton tion of 45 island states," Sands ob­ wro, with a well-placed campaign ended up agreeing with Blair about served that "a one meter sea level rise contribution to the Clinton campaign. just putting more money into educa­ would swamp the Maldives, As for the "Third Way," one Micronesia, and Marshall Islands, tion. Of course, no mention was made continued 011 page 22

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p a g e 18 • D e m o c r a t i c L e f t • W i n t e r Social Security/rontin11uifrom page 7 taxation on current income earners. fered by HMOs. Private HMOs a high-level, defined-benefit pension Today's privatizers rarely admit that would then "compete" for individual plan. -uch a plan could run the risk their proposals inevitably involve Medicare customers. The plan would that the government might not man­ some delay of retirement age at not only require the eldecly to pay the age to take sufficient profits in bull which full-benefits are available, remaining twenty five per cent-to markets so as to guarantee sufficient boosting payroll taxes, and radically "discipline" their alleged profligate pay-outs during bear markets. But the cutting present and future guaranteed medical spending, it would "allow" government would have a greater benefits. individuals to buy plans which cost ability to cushion downturns than In a system in which individual more than the average plan. Only the would individual investors. The Right retirement accounts provided a good affluent will then be able to afford may oppose such proposals, as they portion of anticipated social security the comprehensive plans with full detest government 'ownership'; the income, only the most affluent would drug coverage and lower deductibles. Left and remaining liberals are likely be shielded from the vagaries of The only benefit of this likely Medi­ to be divided over the risk-versus­ stock-market performance. Yes, over care "reform" proposal is that it will reward question. The AFL-ClO Ex­ the very long-run and on average an provide the democratic Left with ecutive Council has shown a willing­ investor will be rewarded for the potential opportunities to publicly ness to explore some forms of col­ higher risk of stock investments by tout the virtues of a universal public lective government investment in the receiving larger returns than those health system. Medicare foe All stock market, provided it does not generated by investments in safer would afford huge administrative exceed forty per cent of the trust government bonds. But individual in­ savings, as twenty-five to thirty per fund "surplus." vestment performance can be below cent of private health care dollars go Leftists should demand that any average. If one retired right after the to advertising and administration, form of equity investment must be twenty year stagnant markets of whereas Medicare and Medicaid have managed and controlled collectively 1901-21, 1928-48, or 1962-82, when an administrative budget equal to 4.5 by the government, in a manner that the broad stock market did not in­ per cent of revenues. While HMOs does not threaten any decrease in real crease in value at all, pension mon­ had a one-time incentive to control benefit levels, nor extend the retire­ ies available to the aYerage individual premiums in order to gam corporate ment age. Moderate advocates of of that retirement cohort would be customers, now that they have such an investment policy contend far less than if one had only owned achieved virtual oligopolistic, inte­ that the government should only be "stodgy" government securities. grated control of markets, they will a passive investor in broad stock­ To add insult to the injuries im­ have even less incentive to insure the market indexes, so as not to interfere posed by the Right on Social Secu­ sick or poor, and to control costs. with corporate management preroga­ rity, and AFDC, familiar stealthy po­ The hard Right jn the U.S. has tives. A more democratic investment litical tactics are being used to gut been hungering to destroy social in­ policy would require that the govern­ another popular social insurance pro­ surance programs, particularly Social ment only invest its considerable gram, Medicare. Government actu­ Security, since the New Deal. Since capital in corporations which uphold aries estimate that the Medicare Trust Social Security has been the most democratic labor, investment, and Fund wtll be depleted as early as popular, universal public good in the trade practices. And the government 2010. The actuarial shortfall they United States, it has been an ideo­ could also invest a portion of the project between 2010 and 2071 logical target as steak bones are to a trust fund in housing and revenue­ comes to about 4.3 per cent. Not only dog. Democratic Socialists may be generating infrastructure, which is this far greater than the 2.2 per cent the organized political tendency in would yield a relatively low-risk fu­ shortfall projected for Social Secu­ the U.S. that can most coherently ture income stream. rity, but it is far more serious, given defend the logic of public provision; that Medicare is now funded by only reintroduce into national debates the Bulls, Bears and Medicare a 2.9 per cent payroll tax (1.45 on efftcie11ry and equi!) arguments for so­ both employer and employee) versus cial insurance. The private market Social Security has been a pay-as-you­ 12.4 per cent for Social Security. panaceas striate the population, defy go system for over sixty years. Cur­ The "Bi-partisan" Commission the innate logic of social insurance, rent tax-payers don't vest their future on the Future of Medicare, loaded and would lead to a grim future for retirements, but instead pay for the with market fetishists and corporate all Americans. benefits of current beneficiaries. The shills for the managed care industry, transicion costs of diverting some of has recommended a 'partial' Joseph Al. Sch111artZJ a member of DS/H these funds to private investment ac­ privatization of ~1edicace. One result National Political Committee, teaches counts owned by today's workers would be government issuance to at Te111ple U11ivem!J. He is the author ef unuld necessitate either a radical cut each eligible citizen of a cash­ The Permanence of the Political. ext nng retirement benefits, or a voucher worth seventy-five per cent ~"'th~ twlSioonal period of double- of the "average" medical plan of-

Winter• D cm o c rat i c Left • pa g c 19 DSAs Gala 25th Anniversary Weekend Wine, Wingdings and Workshops

' 'N ot only are we here, sive growth. not only did we par And parties. The Saturday ticipatc in every im­ evening gala on Central Park in portant struggle for social justice Manhattan featured music and po­ and equity in this nation and world," etry by Eric Mingus, a message of said DSA's Corne) West, "but we hope in new models of socialism fought the good fights during a po­ from Gloria Steinem, that taps the litical ice age." He was referring of American experience, and a selec­ course to the challenge of flying the tion of readings plumbed from the Democratic Socialist banner at the great literature of our tradition­ delivered movingly by members of long-standing, and newer acti\•ists from DSA's Youth Section such as Nat10nal Youth Director Jessica Shearer. "All that is solid melts into air... ", intoned Alan Charney; 'From the ashes of the old u.•orld... " read Juanita Simone Plastrik, a founding mother. Webster and others. As we sang mu­ sic selected by Susan Davidoff, single red roses-the worldwide sym­ But, as Michad Harrington used bol of Democratic Socialism, were to say, " ... a celebration of our past movingly delivered in an can only be a success if it leads to a intergenerational solidarity gesture celebration of our future." To in­ by Youth Section members; a sym­ sure that future, DSA comman­ bolic "Thank You" to many of our deered an entire New York City high Corne! West describes '"ice age." members present that night who school for a review of where we have been fighting the good fights have been and where we're going. end of a 25 year cycle that has since the New Deal, and are our Millie Jeffrey and Marjorie Phyfe re­ mostly favored the Right. But, as models. minded us of the Democratic DSAers such as Francis Fox Piven, Jim Chapin and others noted, the project of the Right may be running out of steam, and we need to make the next 25 years a time of progres-

Members in conversation. Gloria Steinem is hopeful. page20•Dcmocratic Left• Winter new biography of Michael Jack Clark led a a pres-screening dis­ Harrington, and Joanne Barkan and cussion wtth the filmmaker. Re­ Bogdan Denitch delivered their al­ unions, hugs, and a rededication to ways good state of social democ­ our core principles made the week­ racy/ state of the world analyses. end a success. Kudos to Susan The 25'b Anniversary weekend, Davidoff, Frank Llewellyn, Mar::;ha BOSTON celebrating DSA and its two ante­ Borenstein and Maxine Phillips for 6 cedent organizations, DSOC and their hard work, and Rev. Peter NAM, was capped by the Members Laarman for his facilities. To the World Premiere of lHichael next 251 Harrington and Todafs Other Al!leri­ ca11: Corporate Power and lnequali!.J, Bill Donovan's feature documentary.

Next Time: Spring Books Issue Reviews of important new Da\id Km:n:men leads a workshop. books, fiction and non-fiction. And profiles of DSA authors. Agenda pro ect of the 70's, when we almost hobbled pre-DLC conserva­ Pro111i.rct1011.r &ading. Books rec­ tive Democrat Jimmr Carter's pri­ ommended by your fellow marJ• campaign-to his great annoy­ DSA members that you may ance. Jtm Chapin situated DSA in want to look for. the Amencan sooalisc tradition and Also, a preyiew of the new film, sparked hope in many of us that we Michael Harrington and Todq;• '.r do indeed have a role to play in this Other A111erica: Corporate Poinr new global world order. ~Iaurice and lmq11ali!J Isserman offered a preview of his Reunions and old friends.

The Coming Recession/ co11ti1111ed fron1 page 15 is the domesoc and global anti-sweat- tures, socialists need to find organi­ and extended free trade agreements. shop campaign that DSA's Youth Sec- zational and cultural ways to cut The populist righn\ill take some well tion 1s so commendably persuing. through these myths. deserved shots at corporate greed, par­ Sweatshop imporrs from low wage The coming ideological battle ticularly in the financial system, and 1 nations, which cost Amentrul jobs, calls for a ~rru;s roots education cam­ perhaps blame Saran and gun restric­ will again raise the debate o\·er mak- paign. All the usual suspects - the tions. But thdr real wrath \\rill fall on ing pay standards for foreign workers Right, the Center, and T.Jberals - will foreigners "'who take American jobs" a trade requirement-something that do anything to avoid saying that the either by immigrating here, or by is probably illegal under recently basic problem is capitalism itself. The working for lower wages in their home adopted trade agreements. Those corporate right will blame rismg hard­ counmes. All of them will probably agrecments should he pilloried in pub- ship on full employment, high wages agree that the recent period of rising lie, wherever possible. and corporate taxes, which, they will prosperity was typical of capitalism, We will once again encounter claim, are cutting profits and hence and that the downturn is the cxcep­ large numbers of people who feel that jobs. They will say that free market cion. Actually, the long view of his­ the failure of the economy, should it reforms, here and abroad, did not go tory shows that the high points are the happen, is their own personal failure, far enough. The more enlightened exceptions, and that the system func­ and that they would have a job - or a Clinton centrists will call for strength­ tions poorly much of the time, and bettcr job - if only they were smarter ening such structun.:s as the World simply terribly on a periodic basis. lf or worked harder. In our society, Bank and the International Monetary socialists don't say so, no one will. where people are conditioned to ac- f1und; for an international federal re­ Steve Ma.:>< is an Honorary National cept indivtdual responsibility for the serve-type of banking system, and Vice-Chair ef DSA, a11d a longtime periodic breakdown of systemic struc- lower interest rates, public austerity organizer, Jrai11er and writer.

Winter•Democratic Left• page 21 The Third Way/co11ti111f td fro111 pa,~e 18 doesn't hear much talk of it in the last CHRIS RIDDIOUGH LEAVES STAFF few weeks. It probably originated with Chris Riddiough has resigned as acting Director of DSA. Prime Minister Blair's need to give In her letter to the Steering Committee she recommended that some "red meat'' ideology to d1c third the organization seek a New York-based director (see page or fourth of his Labour Party that still 14) and consolidate the offices. The Steering Committee ac­ considers itself 'socialist'. This, while cepted Chris' resignation with regret, and appreciates the the Bank of England has gone the way significant contribution she made to DSA during her near!Y three of the Fed, civil liberties in Britain are years on staff, first as Political Director and then as acting Na­ as roughly treated as in Clinton's tional Director. America, and challenges to corporate Chris remains a national Vice-chair of DSA and of Social­ power are few and far between. ist International Women. She is expected to be elected to the Clinton's eager acceptance of a Third National Political Committee at its next meeting. She will con­ Way summit last Spring, at the trough tinue to represent DSA to the Progressive Challenge, concen­ of his political problems, were hardly trating on issues of global justice and international economic thought through. reform. Philippe Sands was disturbed that The other functions of the Washington office, including the this particular ideological summit had DSA Action Network, will be relocated to the New York na­ no Latin American officials in atten­ tional headquarters. A transition committee composed of NPC dance. He said that the P.M. of Ar­ members Marsha Borenstein, Frank Llewellyn and Jeff Gold, gentina wanted to attend, but wasn't has been appointed by the Steering Committee to supervise allowed to participate. There was also the office, and direct the organization during the search for a no representation from Africa, or any new national director. head of state from Asia. Still, such a purely ideological public meeting among heads of state ameliorate the vast inequalities of in­ tween sometimes dysfunctional mar­ from anywhere is unusual these days. come and power in this world. But, kets, large institutions, and govern­ The Third Way may have been a trans­ we still have to flesh·out our demo­ ments. A Better Way. atlantic flash-in-the-pan, but it does cratic vision of the shifting space be- -Jeff Gold pose the question of how we on the democratic Left want to organize the world in the next century. The Left Statement of Owner:;hip, Management and Circulation does have to find its econorruc foot­ (Required by 39 i..:sc 3685) 1. Publication Title: Democratic Leh. 2. Publication Number: 701-9602. 3. Filing Date: 213/99. 4. Issue ing in an age of uncertainty. Chris Frequency: Bl·Monthly. 5. Number of Issues Published Annually: 6. Annual Subscription Price: $10.00. 7. Riddiough laid out our transborder Complete Mailing Address of Known Office of Publication: 180 Varick Street, 12" Floor, New York, NY wish-list-all of which would help 10014. 8. Complete Mailing Address of or Headquarters or General Business Office of Publisher. 180 Varick Street. 12" Floor, New York, NY 10014. 9. Ful Names and Complete Mailing Addresses of Pub· lisher, Editor and Managing Editor: Democratic Socialists of America, 180 Vanek Stree.t. 12" Floor, New York, NY 10014. Editor: Christine Riddiough, DSA, 409 Butternut Street, NW, Washington DC 20012. Managing Editor; Jeff Gold, 180 Varick Street, 12" Floor, New York, NY 10014. 10.0wner: Democratic Socialists of America, 180 Varick Street, 12" Floor, New York, NY 10014. 11 . Known Bondholders, Mort· gagees, and Other Security Holders Owning or Holding 1 Percent of More of Total Am~unt of ~n~s, Mortgages. or Other Securtties: None. 12. The purpose, function, and nonprofit .status of th.is organization and the exempt status for federal income tax purposes: Has Not. Changed During Preceding 12 Months. 13. Publication Title; Democratic Left. 14. Issue Date for Circulation Data Below: December 1998. Extent and Nature of Circulation: Average No. Copies Eacll Issue Average No. Copies of Single Issue During Preceding 12 Months Published Nearest to Filing Date a. Total Number of Copies 13,000 10,000 b. Paid and/or Requested Circulation (1) Sales Through Dealers and Carriers, Street Vendors and Counter Sales: 0 0 ' (2) Paid or Requested Mail Subscriptions: 8,276 8,469 c. Total Paid and/er Requested Circulation 8.276 8,469 d. Free Distribution by Mail 275 195 e. Free Distribution Outside Mail 3,500 965 t. Total Free Distribution 3,n5 1,160 g. Total Distribution 12,051 9,629 h. Copies Not Distributed (1) Office Use, Leftovers. Spoiled 949 371 (2) Returns from News Agents 0 0 i. Total 13,000 10,000 Percent Paid and/or Requested Circulation 68.6 . . 87 .9 Publication Statement of Ownership Will Be Printed In the December 1998 issue. I certify that all Soda/Security, see page 4. information furnished is true and complete: Frank Llewellyn, Business Manager. page22•Dcmocratic Left• Winter Big Shots Across the Park Clinton, Blair and the Third Wcry

ecently, British Prime Minister Blair and President Clinton met with other heads of state and government at R New York University to discuss the new global order. Sometimes termed the "Third Way," this umbrella ideological construct, mostly a product of New Labour advisors like An­ thony Giddens of the London School of Economics, and other Blairire intellectuals, is often referred to describe "new" forms of social organization that are neither Thatcherite, nor traditionally socialist; that allow markets to work humanely without derailing what 1s viewed as the salutary effects of global corporate compe­ tition-taking consideration of the losers in such arrangements. While Clinton, Blair, the Italian Clinton meeting with reports of con­ Pnme Minster, Bulgarian President fusion abouL the direccion of the meet­ and other world leaders discussed or ings, with American invoh-emcnt by a'-01ded discussion of the Third Way Si

Winter•Dcmocratic Left• page 23 Socialist Snap Shots

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DEPAR1MENT 0 OF' RO&UESTATE PUMlSHMENT

1) c n 1 o c r a t i c S o c i a I i s t s o f A n l c r i c a

0 Yes, I want to join the Democratic Socialis1s. NMIF. My spcc1al intcrcSt arc: Enclosed arc my dues (includes a subscription to the Dcmocnt.ic Left) of /\DL>RF.SS Ot.abor OSSO (sustainer) [)$35 (regular) 0Rdigion 0Sl5 (low income/student) CITY QYouth 0 Yes, I want to renew my membership in DSA. 0Anti-Rac1sm Enclosed arc my renewal dues of STATR ZIP 0 SSO (sustainer) [)$40 (regular) [_)Feminism 0 $20 (low income/ student) 0Gay and Lesbian Rights PllONF. 0 Enclosed is an extra contribution of Send to; • Osso Os 1(Xl 0S25 10 help DSA in its work DEMOCRATIC SOCIAUSTS OF AMERICA E-MAIL 180 Varick Street, 12th floor, New York, NY 10014, 0 Please send me more information about DSA 212-727·8<• IO, fax 727-1!616, and Democratic sOClalism. l.!J-.:IONfSC!IOOL.fOROM'l7:AiiON- c mail: [email protected]. web; wwwdsauu.org

1 l{ 1 I,' fl " !J...., \, J "!I \ •I I 1 I, "1 I l 1 I, '\ \\ 'i •1 r I. '- \ I 11 ti I J ~ ' - ~ - .., I ] 11 page24•Democratic Left• Winter