We Are All Detroit

Posted by admin on July 27, 2013 under African American, Labor, Neoliberalism, Political Economy, Racism, Rightwing, Trade Unions, Wall St | Be the First to Comment

 

Statement by the Committees of Correspondence for Democracy and Socialism

We all have a stake in the outcome of the power grab and bankruptcy of Detroit. The move to rob pensions from some 30,000 active and retired city workers and the selling off of property owned by the people of Detroit – city parks, public services and works of art at one of the most celebrated museums in the country – is a threat to us all.

The contract between the city and its workers to fund a pension plan is no less valid as contracts between the city and its corporate partners. Bond speculators’ losses should not be covered by workers’ retirement income.

No pension fund in the country will be safe. Next will be Social Security. Using the same rationale – that we can no longer afford to sustain a “greedy” middle class – the basis is laid for the complete shredding of the social contract between capital and labor won in bloody struggles of the last century.  The right to income security in old age, health care, civil rights and voting rights, collective bargaining and the promise of a rising standard of living, good housing and education in return for productive labor that creates all wealth is being torn apart.

Democracy hangs in the balance. Republican Gov. Rick Snyder and the Republican-controlled State Legislature refused to follow the will of the people of Michigan who overturned by a 58% margin the law used to take over cities with a so-called Emergency Financial Manager.  The patently illegal and unconstitutional measure gives power to EFMs – unelected Czars – to strip mayors and city councils of all authority, including their salaries, tear up union contracts and sell off public assets, services and property at bargain basement prices.  Flint, Pontiac, Benton Harbor, Ecorse, Allen Park, Detroit – six cities and three school boards in Michigan – are now under dictatorial EFM rule. All except Allen Park have majority African American populations. These cities are largely former auto manufacturing centers deserted by GM, Ford and Chrysler in pursuit of race-to-the bottom profits. More than half of the 1.5 million African American population of the state are now under rule of an unelected EFM czar.

The Governor and legislature thwarted the public’s will on the EFM referendum at the same time they enacted the anti-union Right-To-Work (for less) law in December, a measure to further weaken unions and drive down wages. This and other reactionary legislation passed over the last several months in Michigan, as in other Republican controlled state governments, has been orchestrated by the corporate funded right-wing ALEC, the American Legislative Exchange Council.

The banks will be the big winners in bankruptcy. Detroit’s EFM, Kevyn Orr, will guarantee it.  His law firm represents the banks that hold Detroit’s debt.  The debt figures themselves are politically contrived and exaggerated.  The Governor has denied Detroit $220 million in tax revenue-sharing and other funds earmarked in President Obama’s first term stimulus package. Instead, the money was used to balance the state’s budget while blaming city leaders, mainly African American, for budget shortfalls and “mismanagement.” The UBS AG bank – which pled guilty to interest rate-rigging in a U.S. Justice Department lawsuit – lent the city $1.5 billion in 2004 in a predatory scheme, causing two defaults after the 2008 financial meltdown. The defaults triggered debt ratings to plunge and interest rates to rocket.

The city’s tax base has been decimated with the loss of over half of the city’s population due to the auto industry’s near total abandonment of the city. With an unemployment rate in double digits, 50% of young people have no jobs and no prospect of getting one because there is no public transportation out of the city where the jobs are located.

A power grab and theft of this magnitude assumes that the country will not care that a predominantly African American city – the largest black majority city outside of Africa – is plundered. This is a pilot project for finance capital, a test run for every other city and town in the country.

The Committees of Correspondence for Democracy and Socialism stands with unions, community and religious organizations, and all the people of Detroit who are fighting back.

We stand with the AFL-CIO, the nation’s largest federation of labor unions, which issued a statement on July 25th calling on President Obama and the Congress to make an immediate financial transfusion to Detroit. Additionally, the AFL-CIO calls on the State of Michigan to give comparable financial support to Detroit, the largest of Michigan’s cities.

In solving the budget crisis, we the people must demand of our President and Congress enactment of legislation to revitalize our urban centers in the interest of the working class, not the banks. In the face of corporate irresponsibility, we must have a government-sponsored jobs program to rebuild the nation’s infrastructure and our urban centers, develop new manufacturing industries to transition to a green, sustainable environment for the future of our children and our planet. We urgently need it for Detroit and for us all.

July 27, 2013

Why a United Front Against Finance Capital Matters

Posted by admin on October 9, 2012 under Elections, Obama, Wall St | Be the First to Comment

Goldman Turns Tables on Obama Campaign

By LIZ RAPPAPORT and BRODY MULLINS

Wall Street Journal

Oct 9, 2012 – When Barack Obama ran for president in 2008, no major U.S. corporation did more to finance his campaign than Goldman Sachs Group Inc.

This election, none has done more to help defeat him.

Prompted by what they call regulatory attacks on their business and personal attacks on their character, executives and employees of Goldman Sachs have largely abandoned Mr. Obama and are now the top sources of money to presidential candidate Mitt Romney and the Republican Party.

In the four decades since Congress created the campaign-finance system, no company’s employees have switched sides so abruptly, moving from top supporters of one camp to the top of its rival, according to a Wall Street Journal analysis of campaign-finance data compiled by the nonpartisan Center for Responsive Politics.

Employees at Goldman donated more than $1 million to Mr. Obama when he first ran for president. This election, they have given the president’s campaign $136,000—less than Mr. Obama has collected from employees of the State Department. The employees have contributed nothing to the leading Democratic super PAC supporting his re-election.

By contrast, Goldman employees have given Mr. Romney’s campaign $900,000, plus another $900,000 to the super PAC founded to help him.

Underscoring the magnitude of the reversal, Goldman has been the No. 1 source of campaign cash to Democrats among companies during the 23 years the Center for Responsive Politics has been collecting such data.

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