A generation ago the Chicago Boys and their financial supporters applauded General Pinochet’s anti-labor Chile as a success story, thanks mainly to its transformation of their Social Security into Employee Stock Ownership Plans (ESOPs) that almost universally were looted by the employer grupos by the end of the 1970s. In the last decade, the Bush Administration, seeking a Trojan Horse to privatize Social Security in the United States, applauded Chile’s disastrous privatization of pension accounts (turning many over to US financial institutions) even as that nation’s voters rejected the Pinochetistas largely out of anger at the vast pension rip-off by high finance.
Today’s most highly celebrated anti-labor success story is Latvia. Latvia is portrayed as the country where labor did not fight back, but simply emigrated politely and quietly. No general strikes, nor destruction of private property or violence, Latvia is presented as a country where labor had the good sense to not make a fuss when faced with austerity. Latvians gave up protest and simply began voting with their backsides (emigration) as the economy shrank, wage levels were scaled down, and where tax burdens remained decidedly on the backs of labor, even though recent token efforts have been made to increase taxes on real estate. The World Bank applauds Latvia and its Baltic neighbors by placing them high on its list of “business friendly” economies, even though at times scolding their social regimes as even too harsh for the Victorian tastes of the international financial institutions.
Can this really be a model for the United States or Europe’s remaining social democracies? Or is it simply a cruel experiment that cannot readily be emulated in larger countries un-traumatized by Soviet era memories of occupation? One can only dream …
But the dream is attractive enough. In a page one The New York Times feature article accompanying that paper’s celebration of the Obama Administration’s Fiscal Cliff commitment to budget cutting, Andrew Higgins provides the latest attempt to applaud Latvia’s economic and demographic plunge as the “Latvian Miracle.” The newspaper thus has fallen in line with the surrealistic Orwellian attempts to depict Latvia’s austerity and asset stripping as an economic success as rendered in the brochures distributed by the Institute for International Finance (the now notorious Peterson bank lobby “think tank”) and international financial institutions from the IMF to the European Union banking bureaucracy. What they mean by “success” is slashing wage levels and leaving the tax burden primarily on labor and lightly on capital gains, without spurring a revolution or even Greek style general strikes. The success is one of psy-ops and engineering of consent Edward Bernays style, rather than of successful economic policy. …
Of course even the most finely tuned propaganda doesn’t suffice when people actually start going hungry, thus the need for the other prong of the skewer, paramilitary counterinsurgency, developed in vietnam and honed to an algorithm in latin america:
The recruitment of death squads is part of a well established US military-intelligence agenda. There is a long and gruesome US history of covert funding and support of terror brigades and targeted assassinations going back to the Vietnam war.
As government forces continue to confront the self-proclaimed “Free Syrian Army” (FSA), the historical roots of the West’s covert war on Syria –which has resulted in countless atrocities– must be fully revealed.
From the outset in March 2011, the US and its allies have supported the formation of death squads and the incursion of terrorist brigades in a carefully planned undertaking.
The recruitment and training of terror brigades in both Iraq and Syria was modeled on the “Salvador Option”, a “terrorist model” of mass killings by US sponsored death squads in Central America. It was first applied in El Salvador, in the heyday of resistance against the military dictatorship, resulting in an estimated 75,000 deaths.
The formation of death squads in Syria builds upon the history and experience of US sponsored terror brigades in Iraq, under the Pentagon’s “counterinsurgency” program. …
It doesn’t take a genius to see what’s in store for this country if the robber baron scam-masters get their way.