Where We Was, Where We Is, Where We’re Going


“Money – get back. I’m all right Jack. Keep your hands off my stack”

Inequality and economic distress – these are the biggest crisis’s our societies struggle with today.

It’s helpful to understand how we got here. We were conned, by some of the best conmen of all time. It took a concerted effort, and a lot of wrangling and wheeler dealing, but in a surprisingly quick and definitely hostile takeover, our 12,000 year old Agrarian Society was overthrown by a small group of people working hand in glove – the wealthy, the church, and the governments – who ushered in the Industrial Revolution somewhere around 1760.

economic history

Prior to that time, we’d peaceably lived alongside our crops and livestock, content to track our days with the movement of the sun and the changing of the seasons. We gave no thought to wages, earnings, salaries. Life was not always easy, but for most people, it was simple and understandable, from birth to death.

With the introduction of industrialization, all of that changed. Along came machines, and factories, and overseers, and owners who needed to make certain that the wheels of the machines were kept moving and well oiled. In order to do so, changes had to be made to the lifestyles of workers – the ‘cogs’ necessary to keep the machines – and the economic engine – working smoothly.

industrial-revolutionPeople had to learn a whole new way of life. They had to wake up and be somewhere for a set time, take their meals when a work break was called, and learn to use the bathroom only when their boss thought it appropriate. Decisions on what days should be honoured, for personal or religious reasons, left their hands, and became the prerogative of the owners. All of these changes ensured that there would be work for doctors, psychologists and life coaches for years to come.

Instead of taking care of their own homes and families, workers were made to believe that the only way they’d be happy would be if they earned a wage that increased with their loyalty to the firm. With no health and safety or child labour laws in effect, many families threw their lives, and that of their children’s’, into the machine.

What people could ‘earn’ in a week mattered more than before, because they were no longer tending to their farms and live stock .. now they needed to ‘make a living’ in order to pay for those things which they’d primarily provided for themselves before.

puritan work ethicAnd the churches played their part as well, by making the concept of work ‘holy in god’s eyes.’ The vaunted work ethic, that became synonymous with virtue, never applied equally to the families of the wealthy, who instead lived lives of ease and indolence, catered to by those who now needed to provide a livelihood for themselves, or their families.

The churches were richly rewarded by governments for their place in manipulating workers’ minds, generally by being made exempt from costly taxation.

(This distinction is why the ‘separation of church and state’ is such an important principle of a true democracy, since governments, often indistinguishable from business, know full well that having religion on your side can ease through a lot of concepts that the masses might not swallow if it just came from a government or a business.)

The Agrarian Society was overtaken by capitalism, when the existing powers – those with capital, religion, and later, governments built around capitalism – made it seem that capitalism was the natural culmination of a human inclination to buy and sell. In fact, capitalism simply replaced the agrarian age with it’s own requirements.

The ‘job creators‘ were deified, while the actual workers were continually judged as to worthiness. And the worthless were ruthlessly cast aside. A new caste system emerged, defined primarily by wealth, and what wealth could buy, be it more education for their own children, more factories, or more funds with which to persuade governments to make laws protecting the continued acquisition of wealth by those who least needed that protection.

look-job-creators-job-creators-3159518Workers were told that it was only by working hard that they would be proven virtuous, and achieve their just rewards. They were told that they needed to be independent, and ask for no handouts or help from those already successful, but instead that they must forge a righteous path to their own pinnacle of success. They needed to be daring and adventurous, and carve a path to the top, letting no person or soppy sentiment impede their progress.

In time, businesses began to be the unspoken, but overriding, partners of government. Laws and rules, better for businesses than for the masses who elected government, were made palatable by a constant drip of ‘patriotic’ economic theories that always landed firmly on the side of the owner class, rather than the worker class.

“Money, so they say, is the root of all evil today.
But if you ask for a rise, it’s no surprise that they’re giving none away”

It’s the economy, stupid,” was the rallying cry that allowed businesses to run roughshod over those who toiled in the businesses of the owner class. Inequality grew and grew, and as the world careened from the Great Depression to the Great Recession of 2008, the wealthy moved to the head of the table, while those who did the actual work, were told they had to settle for the crumbs that fell from the tables of the rich and powerful.

explaintrickledowneconomicssmallEconomic theories that favoured the already wealthy, like the ‘trickle down effect,’ or the tax scam bill recently forced upon the United States, were put into practice by governments who knew very well that the wealth would not only stay where it was, but increase the holdings of the wealthy, at the expense of the middle class.

 

The US Supreme Court’s decision to define corporations as people just sealed the deal that had been in play for generations – the corporations were now able to seat the government they had always wanted; one run by business and for business, rather than by  democracy or the rule of law.

Now, it could be argued that civilization grew exponentially and in a positive fashion, because of this Revolution. It is what we’ve been told was the way it had to be, for the planet to move ahead.

But in every advancement, there is the seed of it’s own destruction. Before factories were built, or mines dug, no one died in either one. Before trains were invented, there were no train wrecks. Before there were cars, no one had ever been run over by an automobile. And before there was capitalism, there was an agrarian society that worked very well on many levels. Not always, and not for all .. but I think the same could be said for capitalism.

As long as the backs and hands and eyes of workers were necessary, capitalism chugged along rather nicely. As the years passed, the workers and owners struggled for their places and for a more equitable pay structure, but workers remained the backbone of the economy. The middle class defined the country.

But then, along came a new technology, one based on information. The need for unskilled workers began to fall, as the need for a new skill set rose. Many of those who found themselves displaced by new technologies simply refused to translate their abilities to what society now demanded, and they, and their jobs fell by the wayside.

Hand holding smartphone with media icons and symbolMoving forward into the twenty-first century, those who nostalgically remembered a Golden Age where every one who wanted a job, could find a job, were increasingly threatened by a world where their backs and hands and eyes meant little to the owner class. Even worse, the service industry, once an important part of greasing the wheels of the economy, was increasingly threatened with automation.

Employment_by_Industry_in_the_US-2013 (1)

And in fact, newer, cheaper technology was intimidating many other professions, including the 1.7 million truck driving jobs that looked primed to be replaced by self driving vehicles. Not to mention the array of jobs that could be better and more cheaply handled by computers, like highly paid research jobs in legal and medical professions.

While the Agrarian Society had spanned 12,000 years, the Industrial Revolution lasted only about 150 years, before being replaced by the Information Age, which began roughly around 1945, and which we’re now exiting as we enter a new Post-Industrial Age.

So what does this mean to us, we who have to live in this Brave New World? Well, if you’ve been following the social media surrounding the January 1st minimum wage increase in Ontario, and the outrage and pushback by service industries who will be impacted by that increase … a whole heck of a lot.

In Coburg, Ontario, the billionaire heirs to the Tim Horton coffee chain immediately issued an edict to their minimum wage employees, decreeing that, from then on, their lunch breaks would be unpaid, they would be expected to pay a larger portion of government mandated benefits, and that they would lose personal benefits granted prior to the increase. The workers were informed that they would have to sign this new agreement, or forfeit their jobs.

boycottTimsPredictably, the internet went mad. Arguments were made for both sides of the dispute, most of whom wanted to send a strong message to the heirs and the coffee chain that they would not have government regulations manipulated to suit business. It is a tribute to our sense of justice that most Canadians found the Joyce/Horton’s highhanded demands a bridge too far.

But this wage increase, coming after years of employees being asked to tighten their own belts, for the sake of the economy, and to keep their jobs, coupled with the freeze of the minimum wage since 2007, is too little, too late.

The cries from the fiscally conservative, that this increase will decimate employment in minimum wage jobs – is hysterical and completely misses the larger point.

min wage earnersEmployees have been treated as little more than inconveniences for decades. Beginning with the corporate raiders of the eighties, who slashed and burned the employee rosters of major corporations in order to enrich stock holders and investors, followed by the well-intentioned, but ultimately cruel hobbling of staff who were asked to eschew wage raises and to double up their efforts as staff numbers diminished,  employees were always asked to minimize their own needs in order to further the economic needs of those for whom they toiled.

The economic crisis that collapsed the Greek economy was going on in North America as well, but our governments propped up failing businesses in the name of saving the economy, despite this coming at the expense of the workers. When businesses were told to tighten their economic belts, it was the workers who got smaller trousers, and less money in their pockets, or were dismissed, while upper management and stock holders incomes soared astronomically.

The austerity mentality that decimated the well paying jobs and sent many older workers home years before a well deserved retirement, had created an economy that saw, not value in the workforce, but a sea of gaping maws.

employee meatWhat had begun as a need for willing workers was now becoming an awareness of a glut of workers that wanted the jobs that paid for the basic needs of food, shelter and medical care when they were ill or old.

And when the big bosses looked around, they realized they no longer had the jobs to give them.

Those in power look at the conflicting and conflicted attitudes of the working class, and wonder how they will control the peoples’ needs, and how they can keep the people from recognizing that their needs have become a burden on the amassing of wealth by a very small percentage of the population. The workers have become a liability.

Capitalism is about supply and demand. The workers that were once valuable commodities are now in an oversupply and under demand position, as machinery replaces their roles.

The increase to the minimum wage was a paltry $2.40 an hour, but it might as well have been a rise to $50 an hour, or $100 an hour, because, as each year goes by, our oversupply of workers will increase, and the amount of jobs available will decrease. This long awaited wage hike will not matter in a very near future where most jobs have disappeared to technology.

We are engaged in a sound and fury that conceals the real basis of our fear and anger – we are many, but what is available to us is little. Today we fight for the staff of Tim Horton’s but tomorrow, we may be fighting for our own jobs and lives.

“Look, ” the stern faced keepers of the public purse tell us, “we need to give more money to the ‘job creators,’ so that they can make the jobs that will make you happy.  In exchange, we’re going to have to take away the social safety net. That seems fair to us.”

But the job creators always had the trillions of dollars necessary to create the jobs, either in their bank accounts or socked away in some tax haven. They just realized, a decade ago, that there was no reason to spend their own money to do so. They outsource the lowest paid jobs overseas, and patiently await the automation that will rid them of most other jobs.

VOLVO SWEDEN FORDIn times like this, we have to understand that fighting for the minimum wage of some not very desirable jobs is just one very small part of a problem that can only escalate. There are few solutions to that bigger problem.

So, despite our long term stakes and investment in the arc of capitalism that began somewhere around 1760, and that we’ve built with our own toil and sweat, what we should be contemplating is … what will be done with us when the need for our backs, our hands and our eyes no longer exists?

Can we count on those who hold wealth and power to provide some sort of Universal Basic Income? Or are our days numbered, as our value to ‘the machine’ dwindles down?

I’m just hoping our future wasn’t prophesied in the 1973 post-apocalyptic science fiction thriller, Soylent Green.

(that’s a joke! maybe … )

 

 

The Bare Necessities


(originally published August 8, 2015 – https://bobsegarini.wordpress.com/2015/08/09/roxanne-tellier-the-bare-necessities/ )

Happy Face RoxI woke up in a great mood this morning. With reason – the last few days have been filled with music and food and friends and more good food. I’m a simple person. My needs are few. Oh, I may grumble and stew and frown at times, but overall … I’m pretty much a human happy face emoji.

I fell off the career ladder at least a decade ago. These days, I can’t even manage the bottom rung. So, like so many others of my generation, I’ve got less work stress, but a heck of a lot more money stress. You take the good with the bad.

Not having a ‘real job’ means, unfortunately for those who read my columns, that I have a lot of time to spend on reading and researching and analyzing what goes on around the world. Not liking a lot of what I’m seeing, these days.

They say that time is money, but I don’t know that I’d make a very good rich person, no matter how I came by the moolah. Money’s pretty much useless once you’ve covered the basics, like water, food, shelter and clothing. After that, you have to make an effort to find things to spend on. It’s all relative. No shoes to new shoes is nice. No shoes to Louboutin’s is nice too, who doesn’t love a red sole? But shoes is shoes is shoes, really.

no shoesIn an ideal world, no one would go hungry or homeless. Sadly, our world is not ideal, largely because of a lack of empathy and a lack of will. If you see a homeless person begging for food, your empathic response may be mitigated by an inability or an unwillingness to help.

In an ideal world, people who amassed wealth would be spending their efforts and money on finding solutions to real problems, like inequality or climate change, rather than casting a gimlet eye on what others are doing with their bodies (and especially private parts,) that offends their senses. yoda offended

If what drives you to get up in the morning is a need to regulate other people’s uteri … get over yourself. If your face gets all red at the thought that there might be even one destitute person on welfare who’s using that whopping $25.00 a day to buy illegal drugs, you seriously need to re-consider calling yourself a Christian.

(Saddest of all – the average welfare payment in the U.S., at about $9,000.00 a year, is in the top 20% of all global income earners. That’s some pretty astounding inequality.)

California water not equalIn Friday’s closing monologue, Real Times’ Bill Maher talked about entitlement amongst the very wealthy, citing the Washington Post headline, “Rich Californians balk at limits: “We’re not all equal when it comes to water.”

“Now, I’m sure that the majority of very rich people have always been greedy and selfish, but, this crowd today takes it to a whole new level. Somehow it’s not enough to spend lavishly on themselves, they have to actively take from others;  their water, their benefits, the last bits of beauty in the world.

psychopathsIn his non-apology apology, Dentist the Lion Hunter used the word ‘legal’ over and over; what he did was ‘legal.’ Sure. Because the rich buy politicians to write laws to say that whatever they want, is legal. Like our elections now. More than half the money given to presidential candidates so far has come from just 400 families. Perfectly legal. But you know, for that kind of money, the rich shouldn’t just get to tell politicians what to do. I think they should get to hunt them. That would be the ultimate trophy to go with your trophy kill, and your trophy car and your trophy wife. What could be better than a trophy Republican’s head on your wall? Scott Walker’s eyes already look like cheap taxidermy, and Chris Christie’s leg would make a lovely umbrella stand. And if that sounds wrong, we’ll make a law that says it’s legal.”

The machinations of elections in the U.S. and Canada are in full swing. It’s interesting to see that the would-be leaders are more passionate about how they’d save the economy than bigger and more pressing issues like climate change and inequality. I believe neither issue was raised in the first presidential nominee debate, and in the Canadian debate, Harper could not have been more indifferent to aggressively tackling either.

No, the sexy issue on the table is ISIS. Fear mongering has replaced any pretense of responsible leadership. The horrors of potential terrorism on our own soil, as unlikely as being hit by lightning while in the process of cashing your winning lotto ticket, have superseded the harsh realities that we actually do live with every day. Draconian laws that take away our rights and freedoms; irresponsible spending of tax dollars on politicians’ egos, while our infrastructure crumbles; the very real consequences of ignoring climate change while forest fires rage in B.C. and severe drought in the Prairies threatens our breadbasket… Nope … let’s talk about terrorism, regardless of the facts that the odds are 1 in 20 million that you’ll be in a terrorist attack. Because … fear is a thrill, just like a roller coaster ride. rollercoaster fear

What successful politicians understand, beyond how to spend other people’s money, is the soft underbelly of the public. Capitalizing on what motivates every soul to get up and get through another day. As the great prize fighter Rocky Marciano once said, “Hit the heart and the head will follow.” We like to think we’re level-headed, intelligent people, able to logically decide who will next lead our country. But in all of our choices, there are really only two choices – the rational reason, and the real reason. And the real reason is always … fear.

sleazy sales dudePoliticians today work from the same Bible as super salesmen. Rather than have voters change their behaviour and opinions to adapt to their vision, they adapt to their constituents, learn their thought processes, and find out what keeps them awake at night. Sly, but effective.

Forget the separation of church and state, as important a concept as that may be. What we’ll hit ‘em with is fear. Fear that someone is doing something they shouldn’t be allowed to do, or that their home, family, religion, or money is under attack. And we’ll umbrella that message with a cry to patriotism, and a shout out to a God that is clearly always on our side. (He’s a multi-faced dude, that God.)    god on side

What that message means to every voter, whether in Canada or the U.S., is that the really important ‘things that really do happen and shouldn’t’ issues, are swept under the rug. Your odds of being in a terrorist attack are miniscule, but if you’re a First Nations youth, your odds of being fostered out from your family, or of your being arrested, are staggeringly high. In the United States, 49 percent of black males, 44 percent of Hispanic males and 38 percent of white males have been arrested by the age of 23. There’s some day to day stuff I’d rather see addressed.

I’m all for protecting the country, but not at the expense of the freedom of those of us who live here, and who physically and financially support the country. There is something indescribably obscene about a Prime Minister who fills Parliament and the media with carefully controlled images of himself, at a cost of billions of taxpayers’ money, while 1 in 7 Canadians (4.8 million people,) live in poverty.

Any would-be politician who told the truth to the people, who straight up said, “hey, we’re in big trouble. The party’s over. Time to clean up the mess,” would never get elected. Carefully controlled and contrived issues aimed at election and re-election sweep the bigger, inevitable crises in the making further under the rug, to be dealt with, sometime, somehow, by someone other than themselves.

There’s no better way to describe this sort of pandering and lala land thinking than with Donald Trump’s words on ‘ObamaCare’ at the debate. “It’s gotta go,” Repeal and replace with something terrific.”

trump-quotes“Something terrific.” Nothing that actually exists, or that may even be possible to create, just “something terrific.” I’ll get my interns on that , stat.

Here’s the thing. Politics used to be about choosing a leader who was smarter, more informed, with hopefully a better grasp on their emotions than you have, and a driving need to improve the well-being of their country. Now it’s about galvanizing dispirited, frustrated voters with rhetoric and appeals to base fears, by politicians who regard spending time actually running the country as detrimental to their real job of getting elected and then re-elected. It’s hard not to see the ridiculous squabbles in Parliament and Congress as anything but an unruly classroom of bratty twelve year olds, killing time until recess.

And what that ends up creating is a country where millions of voters can’t even cover the basics, like water, food, shelter and clothing. We’re so busy fighting an imaginary enemy that we don’t see the real adversary right in front of us; apathy, and surrender to whatever distorted messages corporations and politicians funnel into our increasingly empty heads.    milk on head

It’s remarkable, really. From prosperity to austerity, from hope to despair, from security to nameless fear and dread. Quite a feat, when the most that the majority of us want to attain is a relatively bump free ride from birth to death.

I’ll take my bare necessities, seasoned with music, good friends, and the occasional delight of a delicious meal. And I’ll wash that down with a cold beer and a gratefulness for what I have.

John Baird – Bouquets and Brickbats


Political junkies were surprised and excited when rumours began that Canada’s Foreign Minister John Baird would resign his position, effective immediately, and also resign as an MP, to take effect within days. Speculations as to woil prices cartoonhy, and especially as to why NOW, filled the mainstream and social media.

Was this the beginning of a Conservative meltdown, as oil prices tanked, the loonie dived, and Prime Minister Stephen Harper sabre rattled and proposed new security measures accused of restricting civil liberties?

National Post columnist John Ivison speculated that there was a rift between Baird and Harper over Canada’s sanctions on the Russian government. Some wondered if being pelted with eggs and shoes by dozens of Palestinian protesters in January 2015 had shaken his resolve. (Activists from Palestinian President Mahmoud Abbas’ Fatah party earlier called for a boycott of Baird because of Canada’s Baird Palestineperceived pro-Israel stance, and its opposition to a Palestinian bid to pursue war crime charges against Israel.)

Still others noted that, by not running in 2015, Baird also qualifies for his pension, of $100,00 per year, under an old rule, at age 55. Parliament increased the qualifying age to 65 years old but that policy only covers those who are elected or re-elected in 2015.

Or maybe it was just that, after two decades in public office, he’d simply decided it was time to seek other opportunities, possibly in the private sector. He is said to be finalizing two offers.

Mohamed FahmyOn Monday, Baird reported that Egyptian-Canadian journalist Mohamed Fahmy, who is in jail in Cairo, would be released imminently, which would be his last diplomatic victory.

Although Baird’s stances were often provocative, even prompting Conservative colleagues to tease him of having a partisan nature, he was well liked by many in the other Parties.

“I quickly learned thoBaird resignsugh to make a difference, to really make a difference, you can’t be defined by partisanship, nor by ideology. You need instead to be defined by your values,” he said in his resignation speech.

Since being named foreign affairs minister in 2011, Baird has spoken out against controversial issues at home and abroad.

In 2012, he addressed a British audience on human rights, saying that Canada would not stand by while its “Commonwealth cousins” criminalized homosexuality and ignored other fundamental freedoms, including the rights of women, minorities, and the right to practice religion. Homosexuality is illegal in 41 of 54 Commonwealth member states.

child marriageIn 2013, Baird spoke at a United Nations session called “Too Young to Wed,” about child brides forced to marry. Baird said “It’s been felt that in some cultures, in some places, this was a social reality. And for the good of the conference, would I mind shutting up,” adding that forced marriage is “unacceptable” and can be ended within a generation.

But he’s made a few gaffes along the way – his request for gold-embossed business cards was outed and ridiculed. He was always on the move, traveled more often, and to more out of the way places than any Canadian foreign minister before him. To his credit, he traveled commercially, but some of his trips didn’t make much sense, and were thought to be a drain on taxpayer funds. He recently flew to Brazil for President Rousseff’s second term swearing in, and attended Persian Gulf conferences that were not important to Canada’s needs.

John BairdIn 2013, a scandal occurred when CTV News reported that Baird and six friends stayed for eight days at the official residence of Canada’s high commission to Great Britain, Macdonald House.

His diplomats were not fond of his frequent, high-maintenance visits. Apparently he wasn’t very fond of them either. In 2014, Baird quietly ordered his department to cut millions of dollars out of a foreign aid program and to call the cut a “surplus.” He blamed the cuts to the program on the bad performance of Canadian diplomats. Associate Deputy Minister Peter Boehm revised the figures in a May 13, 2014 memo, which read “per your instructions, $7 million was declared surplus.”

foreign aid surplusThe NDP Foreign affairs critic, Paul Dewar, felt the minister was being deceptive. “It’s what I would call a parlour trick, to make it appear like they’re sound fiscal managers, when in fact in this case, Minister Baird is trying to make people believe that his cut of $7 million is in fact a surplus. This is exactly the same thing that they did with regards to lapsed funding.”

Canada’s former Parliamentary Budget Officer, Kevin Page, wrote  “The Conservative government has managed the austerity program launched in the 2012 budget with deliberate secrecy. They did not inform Parliament of the details of their spending plans…Austerity is difficult and they did not want to pay a political price for making difficult trade-offs…their strategy was to limit planning information to shut down debate and evade accountability.”

baird_IsraelDuring his time as Foreign Minister, his critics have also accused him of selling embassies and ­unflinching support for Israel, diminished backing for multi-lateral institutions and a “distinctly un-Canadian” stance on foreign policy.

However, he leaves behind many who say he played a large part in shaping Conservative foreign policy and personalizing Canada’s diplomatic relations with the international community

NDP MP Paul Dewar, his party’s foreign affairs critic, told Embassy that Mr. Baird brought the Conservative Party’s foreign policy “into the limelight.”

Canada in the world“John Baird made Foreign Affairs—for good or bad—relevant again within the Conservative government. Prior to that, it really wasn’t a portfolio that was important to the government because of the players involved. They didn’t have as much of an interest or an understanding of the role,” he said.

Harper has appointed International Trade Minister Ed Fast as the interim foreign minister.

Greece Is The Word


The outcome of the election in Greece is sending shock waves across Europe. Syriza, the left-wing, anti-austerity party led by new Greek Prime Minister Alexis Tsipras, won 36% (149 of the Parliament’s 300 seats,) and, by forming a coalition government with the center-right Independent Greeks’ win of 13 seats, will have least 162 seats, a viable majority.

Greece new govt plansThe new government plans to raise the minimum wage, and create 300,000 new jobs, reverse the bank bailouts and stop banks from foreclosing on home owner’s principle residences, close corporate loopholes and offshore havens, and bring in a voucher system to help seniors in need receive food and healthcare.

For more than five years, the Greek citizens have been crushed under austerity policies imposed by the Economic Union’s “troika” of creditors; the European Commission, the European Central Bank, and the International Monetary Fund. Greek foreign debt currently stands at 175% of Gross Domestic Product.

Almost a third of Greece’s economy collapsed under the restrictions. Since June 5, 2011, when the “Indignant Citizens Movement” or the “Greek indignados“, held a demonstration of between 300,000 – 500,000 people protesting in front of the Greek Parliament, a change in government thinking has been pre-ordained. greek protests 2011

The Greek protest was non-violent for about a month, but on June 29, 2011, the police cracked down viciously on the protesters. Three people were killed, and accusations of police brutality, excessive use of tear gas, as well as the alleged use of other expired and carcinogenic chemical substances, led to an outcry by international media and Amnesty International.

austerity greeceWith half the population in poverty, and no end in sight to continued austerity and misery, it was inevitable that the people would rise up, and demand change.

“Both Syriza and Independent Greeks have detailed emergency economic programs that will commit their government to deal with the humanitarian catastrophe left by five years of the hated Troika policy. The damage has been unprecedented short of wartime, and has led to unemployment officially at 28%, but considered by experts to be actually as high as 45%; pensions and salaries have been slashed by 25-45%. The destruction of the health-care system has increased the child mortality rate, the suicide rate, and the death rate.” (http://www.larouchepub.com/other/2015/4205grk_elex_eup_new_deal.html)

Britain's Prime Minister David Cameron delivers a speech  at Dynamic Earth in Edinburgh, ScotlandEuropean leaders were swift to denounce Greece’s audacity. British PM David Cameron tweeted, “The Greek election will increase economic uncertainty across Europe.” (Britain’s membership in the European Union is a major issue in the campaign for the upcoming May election.)

russia-greeceGerman Bundesbank President Jens Weidmann told ARD network that he hoped “the new Greek government will not make promises it cannot keep and the country cannot afford.” But Germany’s opposition Left Party l called the Syriza victory a “sign of hope for a new start in Europe.” And today, Russian Finance Minister Anton Siluanov told CNBC that Russia would consider giving financial help to debt-ridden Greece.

The EU is shaken by the possibility that Italy, Portugal and Ireland, also horribly impacted by austerity measures, will follow Greece’s lead. Fiscal conservatives fear that Greece’s demand to write off up to half of their of €240bn debt will create a “Global Event,” on the scale of the 2008 collapse of the Lehman Brothers Holdings, who went bankrupt with $600 billion in assets.

German Economics 1953But there is precedent in countries restructuring debt. In 1953, Germany was in a similar position to Greece today. With debt from pre-and post-war, they owed nearly 30 billion Deutschmarks to around 70 countries. With no access to capital, and creditors who didn’t believe the country could turn the economy around, Germany was desperate for cash to begin the country’s reconstruction and growth.

Despite budget cuts and laborious repayments, the economic burden was crushing their population. FinanDebt-Accord-290cial negotiations were begun by banker Hermann-Josef Abs, who led a German delegation in London in 1953. He hoped to turn the creditors of today into the financiers and investors of tomorrow. But the foreign creditors felt his first offers were insulting.

The London Debt Agreement, finally signed on February 27, 1953, saw half of Germany’s debts written off, with the rest restructured for the long-term. Germany was not to be economically overburdened. Today, our view of Germany’s economy is paired with the idea that the German people are just a very hard-working people. But none of what Germany accomplished would have been possible without the Agreement.

Greek beach NaxosThose who believe that Greece’s new vision is childish and selfish stereotype Greece’s economy as being irreparably rife with corruption and greed, and fed by an indolent, Mediterranean lifestyle. Those same people once thought that all Germans were Nazis.

greek protests 2014In fact, the average Greek retirement age is nearly 65, but the pension is quite small, requiring many retirees to continue working as long as they are physically able. According to Eurostat statistics, the Greeks work 40.6 hours a week, the highest of all 27 EU member states. The ordinary Greek citizen in not lounging on the beach drinking ouzo, they have been protesting in the streets, as tax increases and social security cuts destroy the peoples’ hope, and the public sectors are privatized to serve as collateral to service the European debt.

The Eurozone finance ministers have no intention of continuing debt relief negotiations unless the new Syriza government promises to honour all existing austerity agreements. Meanwhile, the Euro is trending downward, and the Podemos in Spain, a year-old political party that has surged to the top of the polls promising to reverse austerity in Spain and impose a levy on banks, are poised to join Greece in challenging the stranglehold of the Troika. As Tsipras pointed out during his victory speech, the old ways of doing things in Europe are doomed.   debts are not destiny