Barcelona mayor sued for breaking ties with Israel

Ada Colau went beyond the scope of her authority in her desire to support the BDS movement, says The Lawfare Project.

By Batya Jerenberg, World Israel News

A pro-Israel think tank has filed a lawsuit against Barcelona Mayor Ada Colau for suspending almost all ties with Israel, including its sister-city agreement with Tel Aviv.

The Lawfare Project made the court challenge on behalf of the Barcelona Institute for Dialogue with Israel, a local charity. Its primary assertion is that the mayor violated applicable legal procedures and infringed on the Spanish government’s power to conduct foreign policy.

“The suspension of relations with Israel represents a total misuse of the legal process to engage in a bigoted and partisan campaign, rather than a legal decision within the scope of the Mayor of Barcelona’s power,” explained the Project’s executive director, Brooke Goldstein.

Colau announced on Facebook in February that the decision to break in relations was “due to the repeated violations of human rights of the Palestinian population and non-compliance with United Nations resolutions.” Henceforth, she continued, the city would only maintain ties with “Israeli and Palestinian entities that continue to work for peace and against apartheid.” She also called on other mayors to follow her lead.

At a follow-up press conference, Colau was joined by Alys Samson Estapé, who previously served as the European coordinator of the Boycott, Divestment and Sanctions (BDS) movement against Israel and the Palestinian BDS National Committee (BNC).

The BDS movement seeks to delegitimize the Jewish state by falsely accusing it of abhorrent practices such as apartheid and crimes against humanity.

Barcelona Institute chairman Maxo Benalal noted that besides “disturbing” his country’s foreign policy, “by adopting the tenets of a partisan and discriminatory political campaign against Israel, Ms. Colau breaches the mayor’s institutional duty of neutrality [and] brings harm to the good name of the city of Barcelona.”

“I imagine that Ms. Colau would like Barcelona to be akin to a city-state capable of boycotting Israel and conducting its own foreign policy, but sadly for her and fortunately for the people of Barcelona, this is not legally the case,” added Ignacio Palacios, the lawyer engaged by The Lawfare Project to lead the legal charge.

Israeli Foreign Ministry spokesperson Lior Haiat had condemned the mayor’s announcement, tweeting, “The decision gives support to extremists, terrorist organizations and anti-Semitism, and impairs the interests of the residents of Barcelona.”

It “stands in complete contrast to the position of the majority of the residents of Barcelona and their representatives on the city council,” Haiat added.

The Lawfare Project is an American non-profit think tank and litigation fund that works to protect the human and civil rights of Jewish and pro-Israel communities worldwide by challenging anti-Semitism and anti-Jewish discrimination in court.

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Russian-Jewish dissident convicted of treason, gets 25 years

The sweeping campaign of repression is unprecedented since the Soviet era, effectively criminalizing independent reporting on the conflict and any public criticism of the war.

By Associated Press

A Russian court on Monday convicted top opposition figure Vladimir Kara-Murza Jr. of treason for publicly denouncing Moscow’s war in Ukraine and sentenced him to 25 years in prison as part of the Kremlin’s relentless crackdown on critics of the invasion.

The political activist and journalist, who twice survived poisonings he blamed on Russian authorities, has rejected the charges against him as punishment for standing up to President Vladimir Putin and likened the proceedings to the show trials under Soviet dictator Josef Stalin.

Human rights organizations and Western governments denounced the verdict and demanded his release. Amnesty International declared the 41-year-old to be a prisoner of conscience.

“Today, our friend and Senior Fellow @vkaramurza was unjustly sentenced to 25 years in prison. His unlawful imprisonment cannot go unanswered. We must not relent until Vladimir is free. His wife and children need him free. Russia needs him free. The world needs him free,” the Raoul Wallenberg Centre for Human Rights, named after the diplomat who rescued 100,000 Jews during the Holocaust, stated in a tweet on Monday.

Today, our friend and Senior Fellow @vkaramurza was unjustly sentenced to 25 years in prison.

His unlawful imprisonment cannot go unanswered. We must not relent until Vladimir is free. His wife and children need him free. Russia needs him free. The world needs him free. #FreeVKM https://t.co/GH43Rgx5pW pic.twitter.com/UEgtBXfUsu

— Raoul Wallenberg Centre for Human Rights (@TheRWCHR) April 17, 2023

Former Soviet-Jewish dissident Natan Sharansky, now an Israeli politician, author and human rights activist, also condemned the sentence.

“Putin’s case against Vladimir Kara-Murza is really a case against democracy, human rights, and civil society in Russia. By treating honest and just criticism of the regime’s attack on human rights as high treason and by demanding 25 years in prison as punishment for this, the Russian court is venturing into Stalin-era levels of oppression,” Sharansky posted on social media last week, ahead of the verdict.

Kara-Murza reacted calmly as the judge read the verdict and sentence in a quick monotone. His lawyer, Maria Eismont, later quoted him as telling her: “My self-esteem has risen: I realized that I have done everything right. Twenty-five years is the highest appraisal that I could get for doing what I did and what I believed in, as a citizen, a patriot and a politician.”

Kara-Murza’s wife, Evgenia, who lives in the U.S. with their three children, tweeted after the verdict: “A quarter of a century is an ‘A+’ for your courage, consistency and honesty in your years-long work. I am infinitely proud of you, my love, and I’m always by your side.”

The charges against Kara-Murza, a dual Russian-British citizen who has been behind bars since his arrest a year ago, stem from a March 2022 speech to the Arizona House of Representatives in which he denounced Russia’s invasion of Ukraine, as well as other speeches abroad.

“There are millions of people in my country who fundamentally reject and fundamentally disagree with everything that the Putin regime represents and stands for, from the kleptocracy and thievery to the abuses and the repressions and the crimes against humanity that are being committed,” Kara-Murza said in his 17-minute speech to lawmakers in Arizona, which he visited at the invitation of the Phoenix Committee on Foreign Relations.

“It was an absolute honor for me to witness his courage last year when he addressed” the House, said state Rep. Marcelino Quiñonez, a Democrat and House Minority Whip. “Obviously this sentence is a travesty for justice all around the world.”

Days after the invasion, Russia adopted a law criminalizing spreading “false information” about its military. Authorities have used the law to stifle criticism of what the Kremlin calls its “special military operation.”

Another prominent opposition figure, Ilya Yashin, was sentenced to 8½ years in prison last year on charges of spreading false information about the military.

Last month, a Russian court convicted a father over social media posts critical of the war and sentenced him to two years in prison. His 13-year-old daughter, who drew an antiwar sketch at school, was sent to an orphanage. Days later, Russia’s security service arrested Evan Gershkovich, an American reporter for The Wall Street Journal, on espionage charges.

A recent report by the Russian Supreme Court said that in 2022, courts ordered citizens to pay fines for discrediting the military 4,439 times, for the equivalent of about $1.8 million in total, according to Russia’s independent news site Mediazona.

‘The darkness engulfing our country will dissipate’

In a statement at the end of his trial, Kara-Murza said he was jailed for “many years of struggle against Putin’s dictatorship,” his criticism of the war in Ukraine and his long efforts to champion Western sanctions against Russian officials involved in human rights abuses.

“I know that the day will come when the darkness engulfing our country will dissipate,” he told the court in remarks posted on his Twitter account. “This day will come as inevitably as spring comes to replace even the frostiest winter.”

Amnesty International denounced Kara-Murza’s sentence as “yet another chilling example of the systematic repression of civil society, which has broadened and accelerated under the Kremlin since Russia’s invasion of Ukraine last year.” The organization declared Kara-Murza a prisoner of conscience.

Memorial, one of Russia’s oldest and most prominent human rights organizations that was named a co-winner of the 2022 Nobel Peace Prize along with human rights defenders from Ukraine and Belarus, also has named Kara-Murza as a political prisoner.

Memorial’s head Yan Rachinsky described the sentence as “monstrous,” adding that it reflected the authorities’ fear of criticism and “marked a difference between today’s Russia and civilized countries.”

British and U.S. ambassadors to Russia called for Kara-Murza’s immediate release, speaking to reporters on the steps of the Moscow courthouse. Western governments strongly condemned the conviction.

“Vladimir Kara-Murza bravely denounced Russia’s invasion of Ukraine for what it was — a blatant violation of international law and the U.N. Charter,” British Foreign Secretary James Cleverly said in a statement.

The Foreign Office said it summoned Russian Ambassador Andrey Kelin over the conviction. The U.K. previously sanctioned the presiding judge for human rights violations in another case and said it would consider taking further action to hold people accountable in Kara-Murza’s case.

Former Arizona state Rep. César N. Chávez, a Democrat who was vice chairman of international affairs committee to the legislature when Kara-Murza gave his speech, called the sentence “appalling and sad to those of us who live in a free society.”

Kremlin spokesman Dmitry Peskov refused to comment.

Kara-Murza’s health has deteriorated in custody, leading to the development of polyneuropathy — disease of or damage to nerves — in both his feet, according to his lawyers.

Lawyer Prokhorov told German public broadcaster Deutsche Welle on Monday that the politician was handed “in essence, a death sentence.”

World Israel News contributed to this report.

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How France’s Wealthy Elites Keep Their Grip on Power

A new poll found that 80% of French people believe the class struggle is a reality. While workers are seeing their pensions cut back, the superrich are wealthier than ever — and it’s because of their success in capturing the Republic’s institutions.

Riot police stand in attention during a protest against pension reforms, Paris, France, April 13, 2023. (Firas Abdullah / Anadolu Agency via Getty Images)

Unpopular pension reforms would force low-wage workers in France to put in a couple more years on the job — and yet the country’s superrich have arguably never had it so good. For all the complaints about supposedly stifling regulation and excessive taxes, France is home to more than forty billionaires — including the world’s richest man, Bernard Arnault, whose fortune recently eclipsed $200 billion. His family and others, like the Bettencourts, Wertheimers, Saadés, and Pinaults, sit on mountains of inherited wealth bound up in globally renowned brands like L’Oréal, Chanel, and Yves Saint Laurent, capturing lucrative profits even as the global economic situation sours.

The ultra-wealthy also benefit from numerous allies in government, maintaining close ties to the world of French politics. Thanks to President Emmanuel Macron, they benefit from a reduced levy on capital gains and are no longer required to pay a wealth tax as of 2018. According to economist Gabriel Zucman, the wealthiest 370 households in France pay an effective tax rate of just around 2 percent. A recent poll found that more than eight in ten French people still believe the “class struggle” is a reality today. But if so, why is the minority winning it?

In his book Parasites, released in February by publisher Les liens qui libèrent, labor sociologist and editor of Frustration magazine Nicolas Framont takes aim at the ultra-wealthy and the stranglehold they exert over French culture and politics — all the while making a renewed case for how to shift the balance of power. He spoke with Jacobin’s Cole Stangler about the particularities of France’s moneyed elites and how the country’s working majority can start winning the class war.

This interview has been edited and translated from French.

Cole Stangler

Why did you decide to write this book?

Nicolas Framont

It’s similar to our approach at Frustration magazine, which I’ve led for a few years. Our subtitle is “the media of the class struggle.” This notion of class war seems central for understanding what’s going on politically — but also in the sense that it determines a big part of our daily lives. I wanted to write a very accessible book. The goal was not to do a book for Marxist specialists, but rather to refresh this framework of the class struggle and apply it to contemporary France. The title came later. I wanted something that was punchy and that would attract attention, including from people who aren’t already convinced of a class-based analysis.

Cole Stangler

“Parasite” is a strong word. Why this term?

Nicolas Framont

I wanted something used in everyday language. It’s a strong word that gets attention.

The second reason is that it describes the process pretty well. Workplace exploitation is a form of parasitism. The standard functioning of the bourgeoisie — the process that has allowed it to exist and to get rich — is the exploitation of the work of others. They’re feeding themselves through the work of others. I also think it shines a light on the political parasitism taking place in France: the fact that we have a social class that is [dependent on state aid], benefitting from a lot of public money. That’s the case in most capitalist states, but in France, we’re talking about very significant sums of money. We really have a total porosity between the state and French capitalism.

The third reason is there’s the idea of flipping the stigma on this head. The term assistés [a pejorative term for people dependent on aid] and the term parasite are words that can be used by the far right to describe people receiving welfare benefits, or foreigners. The idea was to take this term, empty it of all anti-poor or anti-immigrant substance, and to use it only for the rich.

Cole Stangler

Capitalism, by its very nature, is an international system. But one of the particularities in France is the importance of inherited wealth. This seems to inform your analysis a lot.

Nicolas Framont

There’s an article I reference from the Financial Times showing that [around] 80 percent of the wealth of French billionaires is inherited. It’s not surprising! In France, we have a bourgeoisie that is very effective at reproducing itself, where “nothing is left to chance.”

The standard functioning of the bourgeoisie — the process that has allowed it to exist and to get rich — is the exploitation of the work of others. They’re feeding themselves through the work of others.

I think it’s particularly effective because it benefits from state tools to do this. The grandes écoles [elite colleges] are an example. There’s this originality in France of having bourgeois education paid for by taxpayers. That’s not the case for every country in the world. [In France], they have these very, very specific, closed-off spaces. I’d say the children of the grande bourgeoisie can only become grands bourgeois themselves.

There are few ways of getting rich in France if you’re not the child of a bourgeois. The fact that the bourgeoisie tries to inspire itself with these stories from US entrepreneurs — which, of course, also have been invented through storytelling of their own — is even more ridiculous in France. That’s just not how it works.

Cole Stangler

One of the most interesting parts of the book is when you talk about the role of the media in France. You write about this group that isn’t necessarily part of the bourgeoisie, but that, in your view, serves the interests of this class. Could you talk about how this works?

Nicolas Framont

If we’re thinking about television, there are two things. Firstly, there are the social origins of journalists. Journalists tell themselves that they’re neutral and are constantly denying that they belong to a class category.

But what’s also striking is how the biases of social and geographic selection mean that it’s constantly the same people on TV. I’ve experienced it myself. Sometimes I get invited on these shows, and I always find myself in this sort of closed-off Parisian space. All the TV channels are based in Paris. They’re constantly busy, so they invite you at the last minute. Typically, only Parisians can make it! There’s also this kind of convergence of interests between producers who want guests who can speak about everything and nothing, and then this galaxy of think tanks, foundation, and institutions who send them the same people every night to preach bourgeois-friendly ideas. A lot of these think tanks basically exist for this! They don’t do research, they don’t publish studies — they produce people that they pay to send on TV sets.

Cole Stangler

The fact that power is so concentrated in Paris plays a role in strengthening the trends you identify in the book.

Nicolas Framont

It plays a huge role. I think the bourgeoisie everywhere find ways to create these closed-off spaces. But in France, it’s greatly aided by the fact that these people are living and working in the same place. I’m always struck by this in TV studios. Maybe these people come from different universes — there could be business executives, editors, journalists, etc. — but they already all know each other! They have this closed-off space concentrated within a square mile or two, generally in western Paris. The French bourgeoisie is very effective because it has these resources that allow it to exercise its domination and ensure its reproduction. Paris is a part of this. Paris is another resource they have to achieve their ends.

Cole Stangler

In the book, you use certain terms that can appear outdated to some. You write about the bourgeoisie and the classes laborieuses [“laboring classes”]. Are these categories still relevant today?

Nicolas Framont

This is also a critical response to other types of analytical frameworks. On the Left, these last ten years, we’ve heard a lot about the 1 percent and the 99 percent, what you might call the Occupy Wall Street framing. I think there’s grounds to criticize this, because it doesn’t account for the intermediary groups that maintain the domination of the 1 percent. And then 99 percent of people don’t have common interests.

There’s also this practice of just talking about “the rich” or “the superrich” or “the billionaires.” For me, these terms are focusing only on wealth, which is one of the forms of power for the bourgeoisie, but ultimately one of many.

Talking about “the bourgeoisie” is also meant to show historical continuity. Things haven’t changed that much! Maybe it sounds outdated, but it’s still the same class, so it should be named the same way. Renewing terms just for the sake of renewing them doesn’t make much sense.

On the other hand, with Frustration magazine, when we decided to use the term classes laborieuses, we had to really think about what term to use. In France, the term “people” [often used by the Left] doesn’t allow us to think about class divides, and then the term classe ouvrière is more restrictive. For us, classes laborieuses is the translation for “working class” in English.

Cole Stangler

Let’s talk about the final section of the book, entitled “remedies.” What should be done?

Nicolas Framont

There are a couple of ways to think about it.

One is, let’s say, cultural or ideological: How do we reappropriate a discourse of class struggle and cultivate a form of pride in our social backgrounds? This is important to me. There’s class consciousness. But there’s also class confidence. How do we collectively gain confidence and feel strong and legitimate? For me, it’s happening precisely at times like these! I feel like there’s a form of class confidence that’s very strong. People are getting actively involved.

The second dimension is more organizational: How do we organize ourselves as dominated classes to manage to overthrow the bourgeoisie and create a society without classes? That’s still the project behind all this! It requires a pretty stern critique of current organizations. We need to criticize left-wing parties that are dominated by elites and that are very poorly representative of the classes they claim to represent. They’re still taking the lead from the bourgeois republic. They have ultimately little autonomy and are very submissive to the dominant agenda.

Cole Stangler

As you say in the book, the left-wing coalition called Nouvelle Union populaire écologique et sociale (NUPES) is largely made up of white-collar professionals. Among its members in the National Assembly, there are very few blue-collar workers.

Nicolas Framont

Yes, it’s not at all a class-based party. It sees cleavages in terms of ideology. And it’s not infused with this history of class cleavages. Maybe La France Insoumise is more than most, but it is ambivalent on the topic. Sometimes Jean-Luc Mélenchon will have a very republican, very unifying discourse, and sometimes it’ll be more polarizing.

Right now, we often have social movements that express class consciousness and confidence. But they’re unable, in such a limited time period, to build themselves organizations that allow this consciousness to exist beyond periods of mobilization.

We have this [vision of class struggle] to some extent on the far left, but it’s made up of small groups. There is a lot of criticism to be made of the French far left, which is very, very ineffective because its members are interested, above all, in internal purity. They spend their time splitting. Even if I think they’re ultimately right, they’re very ineffective.

There is also a criticism to be made of French trade unions, which can sometimes be very disconnected from the situation on the ground. Like you’ve said before, they put out strike calls and then see what happens.

All in all, it means workers don’t have organizations that let them truly fight against all these forms of discrimination that they suffer on the job. It’s worth thinking about what kinds of organizations can be adapted to present-day constraints. For example, union meetings that end at midnight every night aren’t possible. People have complex lives and they don’t want to go to annoying meetings. Today, that’s what “getting engaged” means — going to meetings with people who listen to each other talk. Changes are needed.

How can we imagine an organization that’s present at the workplace but also in different aspects of life — and that is able to maintain and strengthen class consciousness? At the moment, this doesn’t exist: an organization that’s present at the workplace but also in different aspects of life — and that is able to maintain and strengthen class consciousness. Right now, we often have social movements that express class consciousness and confidence. But they’re unable, in such a limited time period, to build themselves organizations that allow this consciousness to exist beyond periods of mobilization. For me, that’s one of the things that needs doing.

Why are Western media suddenly praising Russian electronic warfare capabilities?

How does the world’s largest cartel of arms producers solve the issues with the precision of their weapons? Well, more weapons! With the Kiev regime potentially acquiring thousands of additional JDAMs, US MIC contractors get even more billions of American taxpayers’ dollars.

UN Committee demands the PA assist Israeli hostages in Gaza

The Committee on the Rights of Persons with Disabilities made the request after three years of Israeli appeals for intervention.

By Batya Jerenberg, World Israel News

A UN committee has demanded that the Palestinian Authority (PA) find the two Israelis being held hostage in the Gaza Strip and ensure they receive proper medical care, Haaretz reported Monday.

The Committee on the Rights of Persons with Disabilities became involved two weeks ago after three years of requests for intervention by the families of Avera Mengistu and Hisham al-Sayed, who both suffer from psychiatric disabilities and entered Gaza on their own in 2014 and 2015, respectively.

The Committee also asked that the PA send them a report on their actions within six months, the article said.

Although the Committee has no power over the PA, the Hebrew University’s International Human Rights clinic , which is acting as the go-between for the families and the UN body, suggest that this international spotlight may help get the prisoners released.

“We hope international agencies like the Red Cross, the UN representative in PA territory and states in the region will use this decision as leverage for pressuring the Palestinian Authority to do whatever it can,” said clinic director Dana Yaffe.

“Up until now the PA has taken no action on this matter. No investigation, no sanctions. They don’t see themselves as responsible. Now we can say that they have been found to be responsible.”

Although the Islamist Hamas organization overthrew the PA government in Gaza in 2007 and has been ruling there ever since, Ramallah’s authority officially extends to all areas Israel ceded to it in the Oslo Accords.

The PA has previously blamed Israel for its inability to investigate the prisoner issue. After the al-Sayed family appealed to the PA in 2021, its UN delegation responded, “If reports about Hisham being held in occupied Gaza by non-state groups are correct, this is a result of the ongoing occupation and the failure of the international community to end it.”

Both Israel and the self-declared “State of Palestine,” which has the status of a UN observer state, are signatories to the treaty that obligates countries to ensure the rights of disabled people.

To date, Hamas has never allowed any outsiders to visit the captives. In January it released an undated video of a man it purported was Mengistu, who asked, “How much longer will I be here in captivity after so many years of pain and suffering?” Last June, the terror group released a video of a man it said was al-Sayed, lying in a hospital bed with an oxygen mask over his face, after saying it would prove the captive’s condition was deteriorating.

Jerusalem considered both moves to be attempts to pressure Israel for a prisoner swap.

The terror group has ignored other international requests to see the captives. The International Committee of the Red Cross was denied access, even after its president, Peter Maurer, made the appeal personally in a 2017 visit to Gaza.

At the time, the Red Cross said that it “consistently” urges the terror organization to comply with its obligations under international humanitarian law and release its live prisoners as well as the bodies of two IDF soldiers it snatched during Operation Protective Edge in 2014, Lt. Hadar Goldin and St. Sgt. Oron Shaul.

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A Recession Is Underway for the Many but Not for the Few

Economic data doesn’t suggest that the US economy is in a recession, but Americans’ on-the-ground experiences tell a different story. Extreme income inequality can explain the discrepancy between the economic data and the real-world belt tightening.

A resident of South Gate, California, wheels home a load of free meals for her family of five. (Allen J. Schaben / Los Angeles Times via Getty Images)

In 2022, Marla, a thirty-two-year-old retail store manager in Chicago, began to feel the first signs of an economy under strain. As COVID stimulus benefits dried up and prices surged, her wages became harder to live on. Her credit card debt increased, and she fell further behind on student loan payments, all while higher interest rates made borrowing more difficult. When asked about her outlook, Marla discussed her fears for the future. Would she ever be able to own her own home? And could she afford to have kids while her economic life remained so uncertain?

Experiences like Marla’s, which were shared by millions of Americans last year, often accompany an economic downturn. But a glance at economists’ preferred benchmarks for a recession seemed to reveal an economy that was still robust. This includes strong consumption figures and the appearance of tight labor markets. And although there has certainly been an increase in financial market volatility as well as a wave of equity sell-offs and job cuts in the tech sector, key indexes do not obviously indicate an economy on the brink of a recession.

What is going on with the American economy? Why do the traditional indicators that capture the country’s economic health stand in such stark contrast to the lived experiences of so many people, including the 32 percent of American adults who are falling behind on debt payments and the 25 percent of US parents who have struggled to afford food or housing in the last year.

A closer look at the US economy reveals a country with bifurcated economic experiences. Indeed, it is ultimately America’s historically high levels of wealth and income concentration that can best explain the dissonance between aggregated economic figures and middle- and lower-income Americans’ daily realities.

Regardless of whether the United States falls into recession in 2023, the economy is clearly in a precarious state. The reliance on credit among American workers masks signs of economic distress. Poor job quality, in addition to the anti-competitive and anti-worker domination of local industries by national or multinational firms, makes labor market tightness less predictive of labor bargaining power. And the overrepresentation of the top 10 percent of American earners in the financial system makes that system deeply unrepresentative of the “real” economy.

In other words, as American inequality increases, the data that economists traditionally rely on to declare a recession becomes increasingly skewed, concealing weaknesses in the economy. And such weaknesses do exist. Worse than unsustainable, American inequality is a time bomb that will wreak havoc on the economy if it is not contained.

Glass Half Full

The National Bureau for Economic Research (NBER) is tasked with announcing whether or not a recession is taking place, and it does so by studying a diverse set of macroeconomic conditions. So far, NBER hasn’t announced that the United States is in recession. Although there was a very brief “technical recession,” defined as two consecutive quarters of negative growth, in 2022, NBER does not consider an actual recession to be taking place. During those two negative quarters, GDP was heavily impacted by volatile inventory and net export swings. Both growth and consumption have remained relatively steady.

In addition, the consensus among most mainstream economists is that the job market is robust, despite a slight cooling in recent months and waves of layoffs in finance and tech. Job openings fell in February, dropping below ten million for the first time in nearly two years. (For reference, there were seven million openings in February of 2020, just before the pandemic.) But broadly speaking, most economists agree that labor markets remain strong. The diffusion index from February similarly showed that industries were still growing, but that the rate had fallen considerably. And the March jobs report showed that job growth fell only slightly to about 230,000 while the labor force size increased, indicating a strong labor market despite signs of cooling.

The nature of US growth, consumption, and labor markets has prompted many economists and figures in the financial sector to articulate a cautiously sanguine view of the US economy. For instance Jamie Dimon, CEO of JP Morgan Chase, commented that “looking ahead, the positives are huge” and that consumer balance sheets are in “great shape.”

But general optimism about US economic dynamism is hard to reconcile with the economic realities facing millions of Americans. Recent figures point toward the damaging combination of COVID stimulus provisions ending as well as inflation, including an expected 7.9 percent increase in food prices in 2023. These elements have decreased workers’ real (inflation adjusted) wages, prompting a rise in economic distress.

US household debt is currently sitting at a record $16.9 trillion. And this debt is increasingly concentrated among millennials and younger Americans.

One quarter of adults are now struggling with food security (food spending declined 5.5 percent from January to May 2022). Child poverty has increased, as the COVID emergency boost to Supplemental Nutrition Assistance Program (SNAP) benefits were cut for the program’s forty-two million recipients. Two-thirds of Americans continue to live paycheck to paycheck; about 11 percent are underemployed; 57 percent of Americans can’t afford a $1,000 emergency expense. Homeless shelters have seen their waiting lists double or triple. And nearly 40 percent of low income households have trouble paying for medical care.

As key signals of economic distress have risen, so too has household debt. Currently 20.5 million Americans are behind on utility payments, and 25 million are behind on credit card, auto loan, or personal loan payments. These are the highest numbers since 2009, and both mortgage and credit card debt underwent their largest quarterly increase in twenty years. In total, US household debt is currently sitting at a record $16.9 trillion. And this debt is increasingly concentrated among millennials and younger Americans.

In direct contrast to Dimon’s optimism, the current signals of distress for US households indicate worsening balance sheets and increasingly difficult economic conditions.

The Inequality Mask

Looking more closely at both data and economic history tells us a very different story than what corporate economists and bankers would have us believe. Indeed, the dissonance between widely reported macroeconomic figures and the experience of working-class Americans can be explained by three factors: first, anti-worker policies and events; second, the role of inequality in making the bottom brackets more susceptible to income shocks; and third, the use of cheap credit to supplement for income.

On the first point, over the last half-century a combination of technological change and outsourcing has eroded many middle-income jobs, leading to a polarization of wages in the United States. Meanwhile, unionization rates have fallen significantly, and many firms developed anticompetitive approaches to exerting control over local regional labor markets and suppressing workers’ ability to change jobs (noncompete agreements, for instance).

The entanglement of these elements partly explains why economist Thomas Philippon has found a rise of monopsony dynamics in US labor markets, where workers have lost economic power and experienced suppressed real wages. And so, even in a “tight” labor market that appears healthy, firm domination and anticompetitive practices make lower-wage workers’ experiences more akin to what we might see in a “loose” market, where finding work is difficult and negotiating higher real wages is a challenge.

High levels of inequality that have emerged in part from these economic shifts also mean that a majority of Americans are far too vulnerable to the risk of a sudden shock to their incomes. In 2022, such a shock came in the form of a higher cost of living due to supply-driven inflation, which spurred central banks to increase interest rates. As economic conditions worsen, millions of Americans have insufficient income and savings to weather the storm. Consequently, they struggle to make ends meet.

As economic conditions worsen, millions of Americans have insufficient income and savings to weather the storm.

This is where cheap credit comes in. It has been well established by several social scientists that beginning in the 1970s, the United States underwent a substitution of World War II–era and Great Society welfare benefits in favor of access to cheap credit. This policy shift — not coincidentally occurring in tandem with a conservative backlash to civil rights and the neoliberal embrace of free-market economics — has played a crucial role in worsening income and wealth inequality, both by increasing consumption and therefore profits for corporations and by redistributing extra money from borrowers to lenders in the form of interest.

Meanwhile, it effectively “paved over” the United States’ vast socioeconomic inequalities, making it appear that Americans are capable of shouldering greater financial burdens through their reliance on debt. Economist Adair Turner shows that this has created a self-perpetuating cycle of widening inequality, where debt growth increased inequality, which forced Americans into further debt to finance their cost of living, and so on.

Understanding this history can also help explain exactly why Dimon is wrong about lower-income Americans’ balance sheets. Today, the bottom 90 percent of Americans remain net “dissavers” (debtors), while virtually all savings and capital are concentrated in the top 10 percent of households by wealth. And we are currently seeing the fastest pace of debt accumulation over a three-year period since the 2008 crash.

Risky Business

This erosion of worker power and rise of inequality is not just unfair; it’s damaging to the entire country. It is widely accepted now that high inequality decreases real “equilibrium” interest rates, since cheap credit becomes necessary for low- and middle-income households to finance their expenses. And this can produce a frothy and highly speculative financial system, where bubbles frequently emerge (see most of the tech sector and almost all of crypto).

As the capacity for financial risk-taking increases, the danger of financial crises grows. When recessions do happen, the vulnerability of millions of working-class Americans forces the US government to step in and effectively transmute private household debt into public debt through stimulus provisions — but the selectively limited appetite for public debt among many US federal policymakers frequently means such stimulus fails to adequately protect working-class Americans. This can help explain why economists, including those at the International Monetary Fund and Organization for Economic Cooperation and Development, have repeatedly found that inequality makes recessions deeper and longer-lasting while also limiting economic growth.

Regardless of whether the United States falls into recession, it is worth being skeptical of the explanatory power of the aggregated figures commonly reported in mainstream media. The Wall Street Journal commented on April 7 that the March jobs report “isn’t comforting to workers since they are falling behind inflation, but it’s good news for the Fed.” Given the vulnerability of millions of Americans and the tendency for high inequality to worsen recessions, that optimism appears misplaced.

In the coming weeks and months, we are likely to hear many more commentators articulating the idea that the economy is strong according to traditional metrics, ignoring the ways high inequality masks deep systemic weaknesses and risk. Rather than exhaling a premature sigh of relief, we should ask what the current regime of higher interest rates and inflation means for the families that are now struggling to pay for food and housing. And we should reevaluate our understanding of “economic health” beyond rudimentary analysis of job postings. Ultimately, we should look instead toward what matters most: whether we are building an economy where people have the opportunity and tools to live decent, dignified lives.

Will the End of the Petrodollar End the US Empire?

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Ramsey Clark to Barack Obama: Stop the War in Ukraine! “Peaceful Coexistence” between Russia and America is the Answer

Ramsey Clark passed away in April 2021 

His legacy will live forever.

He has been a source of inspiration to anti-war activists for more than half a century.

Our thoughts are with Ramsey Clark, whom I first met in

The post Ramsey Clark to Barack Obama: Stop the War in Ukraine! “Peaceful Coexistence” between Russia and America is the Answer appeared first on Global Research.