Canada’s Economic Collapse and Social Crisis: Class War and the College Crisis, Part 5

Canada’s Economic Collapse and Social Crisis: Class War and the College Crisis, Part 5

By: Andrew Gavin Marshall

Hundreds of thousands of students take to the streets in Québec to protest tuition increases

Part 1: The “Crisis of Democracy” and the Attack on Education

Part 2: The Purpose of Education: Social Uplift or Social Control?

Part 3: Of Prophets, Power, and the Purpose of Intellectuals

Part 4: Student Strikes, Debt Domination, and Class War in Canada

What are the Spending Priorities of the Government?

In the debate raging over increased costs of tuition in Quebec, increased debt loads of the federal and provincial governments, the need to reduce costs – impose “fiscal austerity” – and find “solutions” to these problems, very little context is given. As students fight back against increased fees, the counter argument simply states that people must pay for their education, that governments must reduce their deficits, and therefore, cuts in spending and increases in tuition are necessary, though undesirable. But how necessary are they? Where is the government putting its money?

The question really comes down to one of priorities and approach. What are the spending priorities of the government, for people in need or for the benefit of the rich? What is the government’s approach to spending in terms of addressing a major social and economic crisis, to treat symptoms or address the cause? A great deal is revealed about the moral, ethical and humanitarian considerations of a state in terms of how and where it spends its money. Canada is no exception.

First, let’s start with Canada’s debt. In October of 2011, it was reported that Canada’s combined federal and provincial debt equaled roughly $1.1 trillion. This raised calls from the business community in Canada stating that, “It’s time for governments across Canada to get more serious about controlling and reducing debt.” In other words: time for fiscal austerity! (i.e., cutting social spending and increasing costs and taxes) This debt load amounts to roughly 58% of government GDP (that is, 58% of yearly tax revenues), as opposed to Greece, with a debt-to-GDP ratio of 160%.[1]

An interesting issue to note is that the Bank of Canada (Canada’s central bank) was created in 1934 as a private bank, and it was transformed into a government-owned bank in 1938, and was then able to lend to the government without interest, and thus, “the Bank is ultimately owned by the people of Canada.” The job of the Bank is to manage monetary policy, by issuing the currency and setting interest rates. Canada had a unique central bank, as most other central banks were founded and maintained as private banks (responsible to private shareholders), such as the Bank of England (1694), the Bank of France (1801), and the Federal Reserve Bank of the United States (1913). It was responsible for financing Canada’s war machine during World War II, railways, the St. Lawrence seaway, the TransCanada Highway, schools, hospitals, healthcare, pensions, and social security, all with no interest attached. Between 1940 and 1974, Canada had a national debt below $18 billion. In 1974, all of this changed as Canada sunk into its neoliberal abyss, when private banks (the “big five” in Canada) essentially took over the function of lending to the government, and at high interest rates, with Canada paying over $61 billion per year on interest to private banks alone. Between 1981 and 1995, the Canadian government collected $619 billion in income tax, but because the debt was owed to private banks, instead of being interest-free with the Bank of Canada, during that same period of time, the Canadian government paid the private banks $428 billion in interest payments.[2]

Interest payments on Canada’s debt account for roughly 15% of Canada’s revenues. Statistics Canada provides information up until 2009 on the Canadian government’s expenditures and revenues. In 2009, the federal government’s expenditures amounted to $243 billion, with $26 billion spent on health care, $88 billion on social services, $5.8 billion on education, and $18.6 billion on debt charges.[3]

So, while cuts are being made to social programs and education (fiscal austerity), they are increasing dramatically to the military, defense, and police. In 2000, Canada spent $10 billion on defense, and that rose to $21.8 billion in 2011. In 2008, Canada’s Conservative government set out a plan to increase defense spending over the following 20 years, setting the goal at $490 billion in total defense spending over that period. Included in the plans are the purchase of 65 F-35 fighter jets from Lockheed Martin, the American war profiteering corporation, to a possible dollar amount of $30 billion or more.[4] So there is money for the war machine, to support an increasingly imperialistic foreign policy, and as the ever-present appendage lap-dog to the American Empire to the south.

And since Canada has its lowest crime rate since the 1970s, naturally the ever-pragmatic Conservative government is seeking to rapidly accelerate the construction of prisons and expansion of police forces. The government’s proposed changes to the criminal system seek to “create a flood of Canadians into the prison system.”[5] The government identified prisons, police, and the purposely-Orwellian classification of “public safety” as the biggest winners in increased budget allocations for 2011, seeking to build more prisons and hire hundreds more police officers.[6] At the same time, the government is slashing benefits to seniors and old-age pensioners. According to the Parliamentary Budget Office, prison costs are expected to rise from $4.4 billion in 2011 to $9.5 billion in 2015-16. When the Conservatives came to power in 2006, prison costs amounted to $1.6 billion per year.[7] So while the government spends billions on corporate tax cuts, fighter jets, police and prisons, it is simultaneously planning on cutting spending for old age pensioners and social security programs.[8]

As the government cuts between 11-22,000 federal public sector jobs, the Canadian Forces (military), RCMP (police), and the overall ‘national security’ establishment will not suffer such cuts, and in fact, will gain employees. Ultimately, under the plans of the Conservative government, between 60,000 and 70,000 jobs could vanish across the country to implement $8 billion in spending cuts.[9]

While spending on health care exceeded $200 billion in 2011, it amounted to $5,800 per person in Canada. While this system – of what is often called ‘socialized healthcare’ – is portrayed by Americans as costly and wasteful, it is far cheaper than the American corporatized – or privatized – health “care” system. The average spending on health care for OECD countries – as a percentage of GDP – is 9.5%: Canada spent 11.4% of its GDP on healthcare in 2009, compared to the United States, which spent 17.4% of its GDP on healthcare; with the Netherlands spending at 12% of GDP, France at 11.8% and Germany at 11.6%. In terms of spending per capita (that is, the cost of healthcare spread out evenly to each individual within the country), Canada spends $4,363 (U.S. dollars) per person on healthcare, with the OECD average at $3,223, and compared to the United States at $7,960 per capita. The irony here, of course, is that a for-profit health system is far more costly than a ‘socialized’ healthcare system, despite the common claims to the contrary.[10]

So naturally, the Federal Government, in the midst of – and on the precipice of a far greater – economic crisis, decides that the best courses of action are to increase unemployment by firing tens of thousands of people, reduce social spending so that they are left with less support in their newfound poverty, and continue to privatize everything. Of course, this inevitably leads to social unrest, protests, even rebellion. Quebec is a great example, as it seems that the anti-tuition strikes and protests are getting more dramatic with each passing week. As the reality of our situation settles in over the course of the next year and years, the protests and resistance will exacerbate and grow nation-wide (along with the development of similar movements around the world). Thus, we may properly understand the impetus of the government to increase spending on police, the military, “public safety” (national security/police state) and prisons: as typical state responses to social crises, throw money at the systems, structures and institutions of oppression so that when the people begin to rise up, the state may have the force available to push them down, oppress them, and imprison them.

The Government of Quebec, which is doubling tuition costs over the next five years, has a current debt of $184 billion or 55.5% of GDP.  Quebec’s current budget, released in March of 2012, projects spending of $70.9 billion, with 42.5% of the budget allocated to healthcare and social services, 22.5% on education and culture, 11.6% on debt servicing, 3.5% on families and seniors, and 19.9% on “other.” Total expenditures on education, leisure, and sports amount to less than $16 billion, with $1.3 billion being allocated to Quebec’s corporations, $5 billion going to manufacturing, while $8.2 billion of the budget is going to pay the interest on the debt. Meanwhile, the government was announcing major investments in mining, aiming to produce a surplus, with $1 billion in investments in mining and hydrocarbon industries, as part of Quebec’s ‘Plan Nord,’ The Plan includes the creation of Resources Québec, a new Crown corporation that will oversee a $1.2-billion equity portfolio, designed to “help develop the north and exploit the province’s abundant mineral resources.” The government, in turn, is expecting $4 billion in mining royalties over the next decade. The forestry, tourism, and agribusiness industries are also getting support from the government, creating partnerships between big business, government, and unions. Quebec provides a great deal of corporate welfare. In 2007, Quebec ranked first among Canadian provinces in how much corporate welfare was doled out, at $6 billion, followed by Ontario at $2.1 billion, Alberta at $1.2 billion, and British Columbia at over $1 billion.[11] So, there’s no more money for education, but there’s plenty of money to throw at multi-billion dollar corporations.

For all the screaming and wailing governments engage in over the costs of social programs and benefits for the public, there’s very little discussion over the expenditures of governments which go to corporations, not to mention, tax cuts. Beginning in 2000, under Prime Minister Jean Chrétien, the Canadian federal government began implementing massive corporate tax cuts, which “allowed Canadian companies to amass some $477 billion in cash reserves,” with corporate taxes going from 28% in 2000, to 21% when the Conservatives came to power in 2006, to 15% at the beginning of 2012. While the tax cuts were supposedly to encourage job creation, in reality, the cuts “allowed companies to hoard cash, pay out larger dividends to shareholders and beef up executive salaries.” For each percentage point in a decrease of corporate taxes, the federal government loses $2 billion in potential revenue. Thus, the total loss from the new tax cuts amounts to $26 billion. A report from the Canadian Labour Congress explained, “The government has been borrowing money to pay for its corporate tax giveaways. Now, to pay for tax breaks, the government is planning to make massive cuts to public services, such as meat inspection, that are essential to Canadians.”[12]

So while students, seniors, and the poor suffer, Canadian corporations are doing marvelously well. Reports from Statistics Canada show that Canadian corporations are “sitting on more than $583 billion in Canadian currency and deposits, and more than $276 billion in foreign currency.” The cash reserves of these companies have climbed 27.3% since 2007, back when Canada’s economy was “booming,” and 9% of the increase in reserves was since last year. Not including financial corporations and banks, Canadian companies saw their cash reserves increase by $33 billion in the last quarter of 2011. While Canadian household debt has doubled since 1990, corporate taxes have been cut almost in half in the same amount of time. Canadian provinces have been lowering corporate taxes as well. Back in 2000, Canada’s combined federal and provincial corporate tax rate was the highest of the OECD countries, at 43%. Today, it’s around the world average of 26%. So while Canadian corporations sit on hundreds of billions of unused dollars, the Canadian government is continuing to give them more money to put in their bank accounts, which then reduces the government budget by billions each year, and the Canadian people are then expected to pay for this corporate welfare through reduced social services, loss of public sector jobs, increased tuition costs and increased debt.[13]

Corporate welfare is dolled out by provincial governments as well. In 2011, the Province of Quebec and Quebec City each provided $200 million to build a new hockey arena for a for-profit hockey team. Ontario is also a corporate welfare haven, as between 2003 and 2005, the province gave $422 million to GM, Ford, Toyota and Chrysler, and in 2009, the province participated in a Canada-Ontario $15.3 billion bailout of GM and Chrysler. The last year that government statistics are available, in 2008, Ontario spent $2.7 billion on corporate welfare, while Quebec spent $6 billion.[14] Between 1991 and 2009, the government of Ontario gave $27.7 billion in tax dollars to corporations.[15] Meanwhile, the Government of Quebec increased taxes in 2010, and the provincial sales tax increased by 2% since then, along with an increased gas tax, and of course, tuition increases.[16]

This system is, by definition, corporatist. A corporatist system (alternatively referred to as “corporate socialism” or “economic fascism”) is one in which profit is privatized and risk is socialized. In other words, the state ensures that corporations profit and become more powerful and dominant, while the people have to foot the bill and suffer for it. As Benito Mussolini reportedly stated, “Fascism should more appropriately be called corporatism, for it is the merger of state and corporate power.” It is no surprise then, that as the state becomes more supportive to the suckling-pig-like-corporate cancers of our society, they also become more oppressive and totalitarian. The very circumstances demand it.

The Big Five Banks Declare War on the People

In early March of 2012, it was reported that Canada’s big five banks (Royal Bank, CIBC, TD, Scotiabank, Bank of Montreal) have recorded “sky-high profits” of $7 billion in the first quarter alone (from November 2011 to January 2012), an average increase of 5.8% since last year. Much of the profits, especially for CIBC, “were mostly due to higher volumes of personal and commercial loans,” or, in other words: debt for people and corporations.[17] Canadian banks are, on the whole, doing better than ever. They are consistently rated as the “world’s soundest” banks by the World Economic Forum, and are even adding some jobs, while U.S. banks cut theirs.[18]

A recent report released by CIBC stated that corporate Canada is as “fit as a fiddle,” as “a health check on Canada’s corporate sector shows businesses across the country passing with flying colours.” In fact, according to economists from CIBC, Canada’s corporate sector has never been better. The major indices of corporate ‘health’ are: “debt-to-equity ratios, cash to credit ratios, profit margins, returns on equity, returns on capital.” The economists concluded that, “even with public sector retrenchment under way, and indications that consumers may not have the same appetite to spend as earlier in the recovery, corporate Canada could be positioned to pick up the mantle and drive economic growth in the years ahead.”[19] So naturally while Canada’s corporations are as “fit as a fiddle” and the public at large is dominated by debt, the government – both federal and provincial – seek to extend more benefits to corporations (tax cuts and state subsidies), while extending hardships to the majority of Canadians (increased taxes, reduced social spending, increased costs). Again, it’s about priorities.

The banking sector in Canada itself is becoming two-tiered, where the big five banks are vacating the inner cities, and so-called “fringe banks” are becoming the choice banks for poor and low-income Canadians. Professor Jerry Buckland wrote that, “There is something ethically troublesome about a situation where low-income people are paying high fees for low-quality services and middle-income people are paying low fees for high-quality services.” Unexpected fees, bad banking hours, lack of ID, and other constraints have pushed lower income groups away from the big five and toward the ‘fringe banks’ which also charge big fees but are more accessible. However, the combination of the big five leaving the inner cities and the fringe banks charging high fees and interest rates, “exacerbate poverty and create a two-tiered banking system.”[20]

Canada’s big five banks are rolling in money. CIBC reported $835 million in profits for the first quarter, up 9.4% from last year; Royal Bank reported first quarter profits of $1.86 billion; TD Bank had profits of $1.48 billion; Scotiabank had first quarter profits of $1.44 billion, a 15.2% increase from last year; and the Bank of Montreal recorded profits of $1.11 billion, up 34.5% from last year.[21]

So why are Canada’s banks doing so well? It’s simple: because people are in debt, and getting deeper into debt. As the Globe and Mail reported, “Mortgages and credit card spending have fuelled bank profits for years.”[22] So now what? Well, Royal Bank of Canada and TD both announced in March of 2012 that they will begin to increase their interest rates on mortgages, which means that they are seeking to further sap the wealth and deflate the future potential of the average Canadian household. But the increase in interest rates will increase bank profits, so it’s a good thing for Royal Bank and TD, never mind that it’s bad for everyone else. The other major Canadian banks will likely follow suit in raising their interest rates. The chief economist at TD Bank estimated that, “more than one million Canadian households, or about 10 per cent of those that currently have debt, will have to devote 40 per cent or more of their income to making their monthly debt payments if rates rise by two-to-three points to more normal levels.”[23]

A Bubble Waiting to Burst?

So what is the Canadian mortgage and housing market doing? Well, it’s replicating the disaster seen in the United States just prior to the 2008 crash. Canada’s banking regulator, the Office of the Superintendent of Financial Institutions warned that Canadian banks were offering mortgages very similar to the U.S. subprime loans and that these pose an “emerging risk” to Canadian banks. Now the regulator didn’t just come out and say this, because that might be helpful. Instead, this information was released to Bloomberg news via a Freedom of Information law request, which revealed that Canadian mortgages “have some similarities to non-prime loans in the U.S. retail lending market.” In 2009, Canada’s housing market began to soar with record-low interest rates on mortgages. This is one of the primary reasons why Bank of Canada governor (and former Goldman Sachs executive) Mark Carney warned that household debt is the greatest threat to Canada’s economic stability.[24]

The state of the Canadian population is abysmal. The average debt for a Canadian household is over $100,000, and the average Canadian household spends 150% of their income. This means that for every $1,000 earned, $1,500 is owed. These debt figures are primarily made up of mortgages, but also student debt, credit card debt, and other lines of credit. A 2011 report indicated that, “17,400 households were behind in their mortgage payments by three or more months in 2010, up by 50 per cent since the recession began. Credit card delinquencies and bankruptcy rates also remain higher than before the recession.”[25]

In March of 2012, the Bank of Canada warned that household debt “remains the biggest domestic risk” to Canada’s economy. While part of the Bank’s role is to set interest rates, it has kept interest rates very low (at 1%) in order to encourage lending (and indeed, families have become more indebted as a result). Yet, the Bank says, interest rates will have to rise eventually. Economists at Canada’s major banks (CIBC, RBC, BMO, TD, and ScotiaBank) naturally support such an inevitability, as one BMO economist stated, “while rates are unlikely to increase in the near term, the next move is more likely to be up rather than down, and could well emerge sooner than we currently anticipate.” The chief economist at CIBC stated that, “markets will pick up on the slightly improved change in tone on the economy, and might move forward the implied date for the first rate hike.” This translates into: the economy is doing well for the big banks, therefore they will demand higher interest rates on debts, and plunge the Canadian population into poverty; the “invisible hand of the free market” in action.[26]

The Canadian housing market is in a major bubble, “with a run-up in prices, high ownership rates and overbuilding.” A majority of Canadian mortgages are financed through the Canada Mortgage and Housing Corporation (CMHC), the equivalent of Fannie Mae and Freddie Mac in the United States (which both went bust in the 2008 crash). The CMHC has an outstanding balance of $132 billion in mortgage-backed securities, $202 billion in Canada Mortgage Bonds, and last year issued a debt of $41.3 billion (compared to $6.5 billion in 2001). The big five banks generally provide the remaining mortgages (again, just like in the U.S.). A spokeswoman for the Canadian Bankers Association, however, reassured those who somehow still trust bankers that Canadian banks “carefully manage risk in their mortgage portfolios.” Home sales are increasing – another indication of the growing bubble – by 9.5% last year alone, while home prices increased by 7.2%. CIBC reported that Canadian homes are overvalued (that is, their prices are artificially inflated) by 10%, and the heads of the Bank of Montreal and Royal Bank both warned in late 2011 that, “condominium markets in Toronto and Vancouver are at risk of correction,” which is to say, a crash.[27]

The problem is especially large in Vancouver, which was recently rated as the most expensive city to live in across North America, followed Los Angeles and New York. Vancouver is now the 37th most expensive city in the world, whereas just last year it was ranked as 72nd. The average price for a detached bungalow in Vancouver increased by 17% from the previous year to $1.02 million. The average cost of a condominium in Vancouver rose 5.1% to $513,500 and the “average priced home in Vancouver is now 11.2 times the average family income, a figure many economists call unsustainable.”[28] In certain areas of Vancouver, such as Richmond, West Vancouver and the West End, housing prices have soared nearly 80% in the past five years, and 27% just in the past year alone. This has been raising fears of a housing bubble in Vancouver, and indeed it should be.[29]

In January of 2012, Bank of Canada governor warned – in very subtle and vague terms – that Canada’s property market is “probably overvalued,” meaning that it is heavily overvalued. Canadian Finance Minister Jim Flaherty also hinted that something is rotten in the state of Denmark, stating, “We watch the housing market carefully and we are prepared to intervene if necessary.” So is it a bubble? Yes! In fact, the Bank of Nova Scotia recently reported that, “At 13 years and counting, Canada’s current housing boom is one of the longest-lasting in the world.” The price of Canadian homes has increased by over 85% since 1998, with a slight stagnant period in 2008, and then continued to rise in 2009, growing by a further 20%. It is no coincidence that household debt has increased as well, with the debt burden of Canadian families at 153% of their income, which is “almost as much debt as American households had at the peak of their bubble.” In fact, the Economist magazine estimated that the Canadian housing market is overvalued by more than 70% (which is to say, it’s probably much higher than that). One of the major American banks, Merrill Lynch, issued a report indicating that the Canadian housing market is rife with “overvaluation, speculation and over supply.” According to an international survey of housing affordability, Vancouver is the second-least affordable city in the world.[30]

It seems that 2012 will be the year the housing market bubble begins to pop, with the economy slowing down, unemployment rising, and job creation has virtually stalled, according to CIBC, which explained that, “the job market is currently weaker than any non- recessionary period.” Canada is not alone, of course, as the United States and Ireland were just the beginning. It is expected that the U.K., Australia, Belgium, France, New Zealand, Spain, and Sweden are all set to follow suit. Within Canada, however, British Columbia and Ontario will be the most affected. But don’t worry, the Canadian banking sector will survive the pop, because it is actually the Canadian government which owns 75% of the mortgages, meaning that this will then pass to Canadian taxpayers, not the poor disadvantaged millionaire and billionaire bankers.[31] Besides, the risk they have will probably be bailed out by our government. As our Finance Minister stated, “we are prepared to intervene if necessary,” which means that they will take all the bad debts of the banks, and then hand them to YOU.

An economist at the Bank of Montreal said not to worry, however, because Canada’s housing market isn’t a bubble, “it’s a balloon,” and therefore, she predicted, “Canada’s housing market is expected to deflate slowly rather than pop.”[32] The argument, however, is one based upon faith: faith that the banks won’t increase interest rates by too much, faith that Canadian household debt won’t inflict as much harm as American household debt, and faith that one can compete in verbal and mental gymnastics in such a way as to convincingly refer to a bubble as a “balloon.” It should be noted that up until the burst of the American housing bubble, all the major players were denying that a bubble even existed.

Patti Croft, a recently retired chief economist from the Royal Bank of Canada warned the Canadian Parliament in January of 2012 that, “the risk of a housing bubble was among Canada’s biggest issues.” The Bank of Canada’s extremely low interest rate (of 1%) has stimulated this growth, just as the Federal Reserve in the United States helped stimulate the housing bubble there through historically low interest rates. The result of such low rates is an excess of speculative actions in the housing market, driving prices up. Croft warned that, “the greater concern is the looming housing bubble that we see, particularly in cities like Toronto and Vancouver, because I think that is where the speculative excesses lie.”[33]

In March, TD Bank warned that Canada’s housing bubble posed a “clear and present danger” to Canada’s economy, and singled out Vancouver as “the market with the greatest risk of a housing price correction.”[34] The effects of the bubble are already evident, as British Columbia is increasingly losing people who are moving to other provinces due to the high cost of living.[35]

It should be noted that, even though this housing bubble in Canada has been inflated since the late 1990s, it is only being talked about, admitted as even existing (though some make absurd claims about magical “balloons”), and acknowledged NOW. This is dangerous. The fact that it is now being acknowledged by top banks, the finance minister, the Bank of Canada and other major international organizations and banks, implies that they are now preparing for it to burst, and are thus positioning themselves to profit from the coming collapse. Remember, this is not a strange idea: during the housing bubble collapse in the United States, all the big banks which helped create it then bet against the market and profited off of its collapse, not to mention, they were then rewarded by the federal government with trillions of dollars in bailouts for their outstanding accomplishments in causing the crisis in the first place. Criminals are rewarded, and victims are punished. That is for a simple reason: government is organized crime.

Canada’s youth are in a major crisis. The youth unemployment rate in Canada is at 14.7%, compared to an overall unemployment rate of 7.4%, with 27,000 less jobs for young Canadians than last year. As one economist explained, “In addition to the fact that youths are facing competition from their own age cohorts, they are now facing competition from people who just lost their jobs during the recession and have 20 years of experience in the workforce.” Further, the economist added, “the whole process of trying to get to where you wanted to be when you got out of university takes years longer than it used to. Taking a lower wage than you were initially expecting has significant repercussions for your long-term career.” A one percent increase in unemployment rates leads to a six-to-seven percent decrease in salary, and thus, “It can take anywhere from 10 upwards to 15 years to close that gap of reduced wages. So your lifetime earnings are substantially lower, for the simple fact that you graduated at the wrong time.” The real rates of unemployed are actually much higher than the stated 14% “because a lot of young people aren’t collecting Unemployment Insurance or welfare.” Thus, it is 14% of Canadian youths who are on Unemployment Insurance or welfare, and the statistics don’t include the rest of the unemployed youth population of Canada.[36]

As for the net unemployment rate of Canadians at 7.4%, this too is misleading, because the statistics don’t include the number of Canadians who have simply given up on the job search, amounting to 38,000 Canadians in the past year. The province of Manitoba created 600 new jobs in 2011, while cutting 10,000 jobs in the same amount of time. The Canadian economy has cut 37,000 jobs just since October of 2011, and it’s only going to get worse. While there are 27,000 less jobs for Canadian youth than there were last year, this number grows to 300,000 less jobs for youth than there were in 2008.[37]

The Canadian federal budget, released in late March, set out the government’s priorities for the coming year. Students and youth, who are among the most in need of help, were basically left out of the budget, naturally, since they are not multinational corporations, bankers, or billionaires. What money is going to schools is marked for industry-related research (i.e., a corporate subsidy), and as Finance Minister Jim Flaherty explained, “The plan’s measures focus on the drivers of growth: innovation, business investment, people’s education and skills that will fuel the new wave of job creation.” Again, it’s important to note that when politicians use the terms “jobs” or “job creation,” what they actually mean is “profit” and “profit creation,” invariably for corporations and banks. In regards to education:

The Conservatives placed a clear emphasis on partnerships between businesses and universities when it came to research funding: among their plans, they intend to dedicate $14 million over two years to double the Industrial Research and Development Internship Program, which currently supports 1,000 graduate students in conducting research at private-sector firms.[38]

While the Canadian government announced funding of “$500 million over five years to support modernization of research infrastructure on campuses through the Canada Foundation for Innovation,” as well as through other research granting councils, the funding will actually be reallocated from other areas of education financing, what are deemed “lower-priority programs,” which means that they do not directly support corporate or industrial profit-making potential. The government will also cut 19,200 jobs from the public sector.[39]

The federal government’s budget estimates a $5.2 billion cut in spending, as well as increasing the limit on Old Age Security from 65 to 67, meaning that older people will have to work longer before getting any benefits.[40] That will give the government just enough time to steal everyone’s pension and hand them to corporations before the people actually need them. So while the government cuts social spending, ignores the needs of Canada’s youth, and fires tens of thousands of workers – this is what economists call “fiscal austerity” – it simultaneously is increasing its spending and support to Canada’s corporations (who are already as “fit as a fiddle”), with “direct spending and incentives to help firms expand, invest and export, as well as measures designed to shed some of the shackles on their growth.” The chief economist at TD Bank stated, “They are trying to create a favourable environment in which businesses can grow.” So while the government provides a meager $50 million to help students find jobs, it hands out billions to corporations. The increased funding for research at universities is also specifically designed to produce products to go onto the market; so again, education funding is being further railroaded into merging business and higher education.[41]

These moves are obviously not taken on the initiative of government alone, but are lobbied for by the corporate and financial elite, whether directly through interest groups, or indirectly through think tanks. The Canadian Council of Chief Executives (CCCE) – formerly the Business Council on National Issues (BCNI) – is an interest group made up of the top 150 CEOs in Canada, and which directly lobbies the government to serve their interests. They played a major role in the efforts to create NAFTA and to pursue the agenda of North American integration, as well as a plethora of other free trade deals. However, their “interests” extend beyond trade, and they seek to lobby the government to serve their interests across the whole society.

The current President and CEO of the CCCE is John P. Manley, former Deputy Prime Minister of Canada, former Minister of Finance, Industry, and Foreign Affairs. He was the co-chair of a Council on Foreign Relations Task Force on the Future of North America (which set the agenda for the Security and Prosperity Partnership and North American integration). He is also on the board of directors of CIBC and a number of other corporations and non-profits. The Vice Chairman of the board of directors of the CCCE is of course, Paul Desmarais Jr. (of the powerful Desmarais family, who essentially OWN Canada’s politicians and Prime Ministers), and other board members include: William A. Downe, CEO of BMO Financial Group; Gordon Nixon, CEO of Royal Bank of Canada; and a number of other leading corporate executives.

The CEOs of the following companies and business organizations are all represented in the CCCE: Air Canada, Astral Media, Barrick Gold Corporation, BCE Inc and Bell Canada, BMO Financial group, BNP Paribas (Canada), Bombardier, the Canadian Chamber of Commerce, Canadian Manufacturers and Exporters, Canadian Oil Sands Limited, Canadian Pacific Railway, Canfor Corporation, Cargill Limited, Chevron Canada, CIBC, CN, Deloitte & Touche LLP, Desjardins Group, Dow Chemical Canada, E.I. du Pont Canada Company, Encana Corporation, Ford Motor Company of Canada, GE Canada, GlaxoSmithKline, the Great-West Life Assurance Company, HSBC Bank Canada, Hudson’s Bay Company, IBM Canada, Imperial Oil Limited, Manulife Financial Corporation, McCain Foods Limited, Microsoft Canada, National Bank of Canada, Pfizer Canada, Power Corporation of Canada, Power Financial Corporation, Royal Bank of Canada, Scotiabank, SNC-Lavalin Group, Standard Life Assurance Company, Sun Life Financial, Suncor Energy, TD Bank Group, TELUS, TransCanada Corporation, The Woodbridge Company Limited, among many others.

Back in October of 2010, John Manley spoke to the Association of Universities and Colleges of Canada on the issue of making Canada “a leader in the knowledge economy.” Manley stated that Canada needed to ensure that “more of our academic discoveries successfully ‘cross the chasm’ to commercial success,” referring to the need to market what is done in university laboratories. Manley stated that, “there is a need for closer collaboration between post-secondary education institutions and the business community,” as, he explained: “Business-university collaboration is key to Canada’s ability to compete more effectively, to enhance our quality of life and to provide better opportunities for tomorrow’s graduates.” Manley elaborated:

All of us have an interest in achieving stronger partnerships between post-secondary institutions and the private sector, and in overcoming the barriers to commercialization of university research – barriers ranging from “hard” issues of funding and intellectual property ownership, to less tangible considerations such as differences in expectations, culture and behaviour between academia and the private sector.[42]

With the release of the Canadian federal budget for 2012, the CCCE of course praised the budget as “taking steps to promote job creation and business investment.” John Manley stated, “By restraining the growth in public spending, reducing regulatory overlap, improving Canada’s immigration system and enhancing support for business-driven research, the government is helping to build a stronger and more competitive Canadian economy.”[43]

Economists from Canada’s major banks had a good deal to say about the budget. Economists from TD Bank explained that, “When combined, the various measures included in today’s budget are aimed at improving productivity and boosting private sector growth, at a time when public spending is being constrained,” and that, of course, this is a good thing. An economist at CIBC praised “the path towards fiscal balance,” as “the 2012 budget was as much about Canada’s longer term prospects as it was about squeezing spending.” Economists at the National Bank of Canada praised the budget’s decision to raise the old age security pension eligibility from 65 to 67 years, “While it is a step in the right direction, it could have been implemented earlier.” Economists at Royal Bank of Canada stated that the Canadian government “has delivered on its promise of guiding the Canadian economy towards improved fiscal performance in what are generally difficult economic times globally.” Meanwhile, the National Pensioner and Senior Citizens Federation declared that, “Today’s budget tabled by Finance Minister Flaherty confirmed the worst for our children and grandchildren… This government has attacked the retirement security of future generations as it looks years ahead for dollars to finance other priorities… There was nothing for seniors, not even a discarded penny for the poorest living in poverty.”[44]

But then, that’s the point, isn’t it? Why would you seek to help the elderly and the poor and needy when you can help the multinational corporations and global banks, and thus, when you leave government, get a secure position on their boards (as John Manley did), and live the rest of your days as a jet-setting, globe-trotting, high-rolling elite? As a politician, you get no personal benefit or profit from supporting or serving the poor or the majority, you must only serve a tiny elite, and then your place is ensured among them.

Make no mistake: Canada’s Big Five Banks, the corporations they control, and the federal and provincial governments, which they collectively OWN, have declared class war on the people of Canada. The agenda is simple: get the population of Canada indebted, which is to say, enslaved; then, increase interest rates, cut social spending, increase unemployment, increase tuition, increase consumer costs, increase taxes, and at the same time, give more support and money to corporations and banks, and decrease their taxes. Then, build prisons, fund the military and the police and the police state apparatus of surveillance and control, so that when the people wake up to the fact that their future is being stolen from them, you can put them in their place: under the boot.

So the question for Canadian is this: will you acknowledge the class war taking place against you, your friends, and your families and fellow brothers and sisters, and then seek to fight back; or, will you continue to go into credit card debt, further into student debt, get mortgages and passively accept subservience to a system which treats you like a slave, sub-human degenerates, and superfluous, that is, useless and expendable. It is a question of passive acceptance of an evil system, or active resistance to forge ahead and creatively construct a humane society. The question is for all; the answer is yours alone.

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada, writing on a number of social, political, economic, and historical issues. He is also Project Manager of The People’s Book Project. He also hosts a weekly podcast show, “Empire, Power, and People,” on BoilingFrogsPost.com.

Notes

[1]            Rachel Mendleson, “Canada’s Public Debt Hits $1.1 Trillion, But That May Not Be As Bad As It Sounds,” The Huffington Post, 3 October 2011:

http://www.huffingtonpost.ca/2011/10/03/canada-debt-cfib-road-to-greece_n_992480.html

[2]            Bill Woollam And Will Abram, Bank of Canada the answer to tax, debt issue, The Citizen, 23 March 2012:

http://www.canada.com/Bank+Canada+answer+debt+issue/6347095/story.html

[3]            StatsCan, Federal government revenue and expenditures, Statistics Canada:

http://www40.statcan.ca/l01/cst01/govt49b-eng.htm

[4]            Brian Stewart, “$30B fighter jets just the start of defence-spending boom,” CBC News, 6 April 2011:

http://www.cbc.ca/news/canada/story/2011/04/06/f-vp-brian-stewart-navy.html

[5]            Editors, “A tough-on-crime bill that goes too far,” Maclean’s, 25 August 2011:

http://www2.macleans.ca/2011/08/25/a-tough-on-crime-bill-that-goes-too-far/

[6]            David Akin, Prisons, police top feds’ spending priorities, Toronto Sun, 1 March 2011:

http://www.torontosun.com/news/canada/2011/03/01/17455551.html

[7]            Barbara Yaffe, Prison spending trumps seniors for Harper government, The Vancouver Sun, 29 February 2012:

http://www.vancouversun.com/news/Prison+spending+trumps+seniors+Harper+government/6227615/story.html

[8]            Les Whittington, “Federal Budget 2012: Government not backing down on plan for cuts to Old Age Security,” The Star, 2 February 2012:

http://www.thestar.com/news/canada/politics/article/1125296–federal-budget-2012-government-not-backing-down-on-future-old-age-security-changes-jim-flaherty-says

[9]            Kathryn May, At least 11,000 local PS jobs on line, study argues, Ottawa Citizen, 23 January 2012:

http://www.ottawacitizen.com/news/least+local+jobs+line+study+argues/6035339/story.html#ixzz1kKdIfxO4

[10]            OECD, OECD Health Data 2011: How Does Canada Compare? Organisation for Economic Cooperation and Development.

[11]            Rhéal Séguin, “Hobbled by debt, Quebec to table budget amid rising public anger,” The Globe and Mail, 19 March 2012:

http://www.theglobeandmail.com/news/politics/hobbled-by-debt-quebec-to-table-budget-amid-rising-public-anger/article2374622/?utm_medium=Feeds%3A%20RSS%2FAtom&utm_source=Politics&utm_content=2374622

Canadian Press, “Quebec 2012-2013 Budget: Read the full document here,” Global Montreal, 20 March 2012:

http://www.globalmontreal.com/Pages/Story.aspx?id=6442604662

Corinne Smith, “Quebec budget curbs spending, explores mining,” CBC News, 20 March 2012:

http://www.cbc.ca/news/business/story/2012/03/19/quebec-budget-2012-2013.html

Quebec budget analysis, CBC News, 20 March 2012:

http://www.cbc.ca/news/canada/montreal/story/2012/03/19/quebec-2012-budget-analysis.html

Roberto Rocha, “Quebec budget highlights,” Montreal Gazette, 22 March 2012:

http://www.montrealgazette.com/travel/Highlights+2012+Quebec+budget/6331845/story.html

Tasha Kheiriddin, “The new ‘Quebec model,’ same as the old,” The National Post, 22 March 2012:

http://www.nationalpost.com/opinion/columnists/Quebec+model+same/6340173/story.html

[12]            Daniel Tencer, “Canada’s Corporate Tax Cuts Prompt Companies To Hoard Cash, Not Hire, CLC Says,” The Huffington Post, 25 January 2012:

http://www.huffingtonpost.ca/2012/01/25/canada-corporate-tax-rate-canadian-labour-congress_n_1231089.html#s638444&title=1_George_Weston

[13]            Canadian Press, “Businesses Getting Billions In Tax Cuts Despite Rising Corporate Cash Reserves,” The Huffington Post, 4 January 2012:

http://www.huffingtonpost.ca/2012/01/01/tax-cuts-corporations-canada_n_1178382.html

[14]            Mark Milke, “How corporate welfare undermines core services,” Troy Media, 25 February 2011:

http://www.troymedia.com/blog/2011/02/25/how-corporate-welfare-undermines-core-services/

[15]            Mark Milke, “Corporate welfare is a costly shell game,” Financial Post, 28 December 2011:

http://opinion.financialpost.com/2011/12/28/corporate-welfare-is-a-costly-shell-game/

[16]            Rhéal Séguin, “Hobbled by debt, Quebec to table budget amid rising public anger,” The Globe and Mail, 19 March 2012:

http://www.theglobeandmail.com/news/politics/hobbled-by-debt-quebec-to-table-budget-amid-rising-public-anger/article2374622/?utm_medium=Feeds%3A%20RSS%2FAtom&utm_source=Politics&utm_content=2374622

[17]            Grant Robertson, “CIBC joins big banks’ profit parade,” The Globe and Mail, 8 March 2012:

http://www.theglobeandmail.com/globe-investor/cibc-joins-big-banks-profit-parade/article2362579/

[18]            Sean B. Pasternak and Ilan Kolet, “Canadian Banks Gain Jobs, Profit as U.S. Lenders Cut Back,” Bloomberg, 20 March 2012:

http://www.bloomberg.com/news/2012-03-20/canadian-banks-gain-jobs-profit-as-u-s-lenders-cut-back.html

[19]            Tim Kiladze, “Corporate Canada’s finances ‘fit as a fiddle’,” The Globe and Mail, 27 March 2012:

http://www.theglobeandmail.com/globe-investor/investment-ideas/streetwise/corporate-canadas-finances-fit-as-a-fiddle/article2382736/

[20]            Mary Agnes Welch, “’Unbanked’ residents of inner-cities paying price, author finds,” The Montreal Gazette, 19 March 2012:

http://www.montrealgazette.com/news/canada/Unbanked+residents+inner+cities+paying+price+author+finds/6326315/story.html

[21]            “How Canada’s Big Five banks stack up,” The Globe and Mail, 8 March 2012:

http://www.theglobeandmail.com/globe-investor/how-canadas-big-five-banks-stack-up/article2363455/

[22]            Grant Robertson, “Lending is a bright spot for Canadian banks,” The Globe and Mail, 4 March 2012:

http://www.theglobeandmail.com/report-on-business/lending-is-a-bright-spot-for-canadian-banks/article2358252/?utm_medium=Feeds%3A%20RSS%2FAtom&utm_source=Home&utm_content=2358252

[23]            CBC, “RBC, TD hike 5-year mortgage rates,” CBC News, 26 March 2012:

http://www.cbc.ca/news/business/story/2012/03/26/rbc-mortgage-rate.html

[24]            Andrew Mayeda, “Canada’s Subprime Crisis Seen With U.S.-Styled Loans: Mortgages,” Bloomberg, 30 January 2012:

http://www.bloomberg.com/news/2012-01-30/canada-s-subprime-crisis-seen-with-u-s-styled-loans-mortgages.html

[25]            CTV News Staff, “Average Canadian family debt hits $100,000,” CTV News, 17 February 2011:

http://www.ctv.ca/CTVNews/Canada/20110217/family-debt-110217/

[26]            Gordon Isfeld, “Bank of Canada says household debt ‘biggest risk’ to economy,” The Leader Post, 9 March 2012:

http://www.leaderpost.com/business/Bank+Canada+says+household+debt+biggest+risk+economy/6274564/story.html

[27]            Andrew Mayeda, “Canada’s Subprime Crisis Seen With U.S.-Styled Loans: Mortgages,” Bloomberg, 30 January 2012:

http://www.bloomberg.com/news/2012-01-30/canada-s-subprime-crisis-seen-with-u-s-styled-loans-mortgages.html

[28]            Peter Meiszner, “Vancouver now the most expensive city in North America,” Global News, 14 February 2012:

http://www.globaltvbc.com/vancouver+now+the+most+expensive+city+in+north+america/6442580994/story.html

[29]            CTV, “Is Vancouver’s housing bubble about to burst?,” CTV BC, 26 September 2011:

http://www.ctvbc.ctv.ca/servlet/an/local/CTVNews/20110926/bc_story_housing_bubble_110926?hub=BritishColumbiaHome

[30]            Erica Alini, “What happens when Canada’s housing bubble pops?” Maclean’s, 26 January 2012:

http://www2.macleans.ca/2012/01/26/what-happens-when-canadas-housing-bubble-pops/

[31]            Ibid.

[32]            Robert Hiltz, “Housing bubble is really a balloon: BMO’s Sherry Cooper,” The Vancouver Sun, 30 January 2012:

http://www.vancouversun.com/business/Housing+bubble+really+balloon+Sherry+Cooper/6073335/story.html

[33]            Derek Abma, “Under-used labour, pending housing bubble, problems for Canada: panel,” Vancouver Sun, 26 January 2012:

http://www.vancouversun.com/business/Under+used+labour+pending+housing+bubble+problems+Canada+panel/6056952/story.html

[34]            CBC, “Housing bubble a danger to economy, TD says,” CBC News, 16 March 2012:

http://www.cbc.ca/news/canada/ottawa/story/2012/03/16/td-overvaluation-debt.html

[35]            Wendy Stueck, “Storm clouds forming over Vancouver’s real-estate market,” The Globe and Mail, 16 March 2012:

http://www.theglobeandmail.com/news/national/british-columbia/storm-clouds-forming-over-vancouvers-real-estate-market/article2372362/

[36]            Claire Penhorwood, “Canada’s youth face job crunch,” CBC News, 26 March 2012:

http://www.cbc.ca/news/canada/story/2012/03/19/f-canada-youth-unemployment.html

[37]            Julian Beltrame, “Jobless picture in Canada grim,” Winnipeg Free Press, 10 March 2012:

http://www.winnipegfreepress.com/business/jobless-picture-in-canada-grim-142188733.html

[38]            Emma Godmere, “Students largely left out of federal budget,” Canadian University Press, 29 March 2012:

http://cupwire.ca/articles/52529

[39]            Ibid.

[40]            Tamsin McMahon, “Top five things you need to know about the budget,” Maclean’s, 29 March 2012:

http://www2.macleans.ca/2012/03/29/top-five-things-you-need-to-know-about-the-budget/

[41]            Julian Beltrame, “Federal budget passes the stimulus baton from government to business,” Winnipeg Free Press, 29 March 2012:

http://www.winnipegfreepress.com/business/federal-budget-passes-the-stimulus-baton-from-government-to-business-144958375.html

[42]            John Manley, “Notes for an Address by the Honourable John Manley,” The Association of Universities and Colleges of Canada, 27 October 2010.

[43]            CCCE, “Fiscally responsible 2012 budget includes targeted measures to improve Canadian competitiveness, CEOs say,” Canadian Council of Chief Executives, 29 March 2012:

http://www.ceocouncil.ca/news-item/fiscally-responsible-2012-budget-includes-targeted-measures-to-improve-canadian-competitiveness-ceos-say

[44]            Michael Babad, “Jim Flaherty’s budget: Pennywise or attack on our kids’ pensions?,” The Globe and Mail, 30 March 2012:

http://www.theglobeandmail.com/report-on-business/top-business-stories/jim-flahertys-budget-pennywise-or-attack-on-our-kids-pensions/article2386823/?from=sec434

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Student Strikes, Debt Domination, and Class War in Canada: Class War and the College Crisis, Part 4

Student Strikes, Debt Domination, and Class War in Canada: Class War and the College Crisis, Part 4

By: Andrew Gavin Marshall

Part 1: The “Crisis of Democracy” and the Attack on Education

Part 2: The Purpose of Education: Social Uplift or Social Control?

Part 3: Of Prophets, Power, and the Purpose of Intellectuals

There is a process under way in Canada, led by the corporate and financial elite, and directed against the general population, the poor, and the young, intending to provide for the rich and powerful, to punish the poor and steal from the rest, to plunge into poverty, to repress, control, and dominate: this process is called ‘Class War’ and it’s waged by the super-rich against the supposedly superfluous rest. It’s objective is simple: to preserve, protect, and expand the control and domination of the wealthy over the majority.

In Quebec, where the class warfare has taken on a specific assault on the students and youth, there are finally growing signs and actions that the youth are starting to fight back. The provincial government of Quebec – the French-speaking province of Canada – has decided to double the costs of tuition over the next few years. These moves have prompted hundreds of thousands of students across Quebec to go on strike in protest of the increased fees. Since Quebec currently has the lowest tuition costs in Canada for residents, a great deal of the media and commentary on the issue is related to lambasting Quebecers for their concept of “entitlements” and for “complaining” that they have to pay what others pay. The debate is focused around the ‘need’ for the government of Quebec to reduce its debt – balance its budget – framing increased tuition costs as a necessity to be accepted, and when resisted, to dismiss the protesters as unrealistic and petty.

So is it true that Quebec has the lowest tuition fees in Canada? Yes. However, Quebec residents also pay the highest income taxes in all of Canada.[1] One of the major claims by the Quebec government as to why tuition must be increased is the claim that Quebec’s universities are among the most “under-funded” in Canada, and therefore they need to increase their funding so as to increase their “competitiveness.” However, according to the Quebec government itself, total government spending on education (in 2008-2009) amounted to 1.94% of GDP, compared to 1.76% for Ontario, and 1.65% for Canada as a whole. At the same time, total university spending per student in Quebec was at $29,242, compared to $26,383 in Ontario, and $28,846 for Canada as a whole.[2] Thus, Québec’s universities are funded to a greater degree than the rest of Canada, so that argument does not hold weight.

Quebec’s universities are funded more than other Canadian universities, while Quebec residents pay more in taxes than the rest of Canada, so why the increase in tuition? As tuition fees for universities increase, government spending on education decreases. As the Canadian Federation of Students notes:

In the past fifteen years, tuition fees in Canada have grown to become the single largest expense for most university and college students. The dramatic tuition fee increases during this period were the direct result of cuts to public funding for post-secondary education by the federal government and, to a somewhat lesser extent, provincial governments. Public funding currently accounts for an average of approximately 57% of university and college operating funding, down from 84% just two decades ago. During the same period tuition fees have grown from 14% of operating funding to over 34%.[3]

This marks a move “away from a publicly funded model and towards a privatised user fee system,” which has caused “post-secondary education to become unaffordable for many low- and middle-income Canadians.” In the mid-1960s, nearly all of Canada’s university funding was provided by the federal and provincial governments, and tuition fees were either incredibly minimal or non-existent. This process began to change in the early 1980s, with the rise of neoliberalism in the global political economy, which saw moves toward cutting social spending by governments. As government funding decreased, tuition costs rose, and as a result, between the early 1980s and the early 1990s, tuition fees in Canada nearly doubled. In 1995, the Liberal federal government of Canada cut $7 billion in spending for the provinces, leading to “the largest tuition fee increases in Canadian history.” Quebec had, however, resisted the push toward making students pay more, which was taking place in all the other Canadian provinces. In the early 1990s, average undergraduate tuition fees in Canada were $1,464; today the average has more than tripled to $5,138.[4]

So why is this process taking place? Why must government spending on education (and other social programs) be reduced, while personal costs for all of these services be increased? The answer is not in “efficiency” or “balancing budgets,” but rather, in class warfare.

In April of 2007, TD Bank (one of Canada’s ‘big five’ banks which dominate the economy) released a “plan for prosperity” for the province of Quebec, which recommended, among other things, raising the cost of tuition: “by raising tuition fees but focusing on increased financial assistance for those in need, post secondary education (PSE) institutions will be better-positioned to prosper and provide world-class education and research.”[5] In one Canadian province, Nova Scotia, the government hired a former chief economist from the Bank of Montreal, Tim O’Neill, to assess higher education finances, and unsurprisingly, advocated higher tuition fees.[6] Banks, of course, have a major interest in promoting increased tuition costs, because they provide student loans and profit off of the interest on student debt, like some malevolent ever-growing succubus draining the life force and potential of future generations which are doomed to debt slavery. So naturally, our governments take the advice of the banks, because they know whom their real masters are.

It should be noted, as well, that this is not merely a problem in Quebec or Canada. Tens of thousands of students in the United Kingdom are planning a walk out in protest of increasing tuition fees, which “are pricing students out of education.”[7] The Occupy Movement in the United States is moving into universities, as campuses in California experienced demonstrations and protests against “state budget cuts to education and the resulting hikes in tuition.”[8] In Spain, more than 30,000 students took to the streets of Barcelona protesting the ‘austerity cuts’ to education, and were then of course met with state repression.[9] Perhaps most impressive is a mass student movement that has developed in Chile over the past year.

The College Crisis

What is the ‘college crisis’? It’s quite simple: our society is producing more educated, professionalized youths than ever before, who are then graduating into a jobless market, and what’s more, they are graduating with extensive debt. The professional education students receive, in combination with the heavy overbearing debt load and the immense dissatisfaction with the lack of opportunities for them, creates a large, mobile, educated, activated, and very pissed off group of people. This is what is referred to as a ‘poverty of expectations,’ whereby the inculcated expectations of a group or sector of society cannot be met by the society in which they live. In any society, in any period of history, this is a recipe for social unrest, resistance, rebellion, and, potentially, Revolution.

Naturally, the elites of any society fear such a scenario, so they always come up with various methods of managing these increasingly problematic conditions. The solutions, invariably, are always aimed at finding methods and means for undermining the ability and effectiveness of the target group to mobilize and organize for their cause; in this case, students. Cutting education budgets and increasing tuition fees is a very effective means to create more ‘desirable’ conditions for elites. How so? Any form of ‘austerity’ is essentially an act of class war, waged by the upper class against the rest. Austerity means that budgets will be cut and costs will be increased, whether through taxation, direct prices for services and necessities, or more often, both. The stated purpose of ‘austerity measures’ is to reduce debt (spending) and increase profitability (or revenue), with the purported aim of eliminating the debt over time. This is, however, not the true purpose of austerity, and appropriately so, it is never the result. The result is actually to increase debt, and impose a regimen of what amounts to ‘social genocide’: increasing the burden, costs, taxes, and hardships upon the wider population. For the poor, it means despair; for the middle class, it means poverty; and for the rich, it means prosperity and power.

The current crisis stems from developments that took place in the 1960s which saw an increase in activism and engagement among the general population, and especially the youth. Universities were breeding grounds for activism and movements which sought to create social uplift. The elite response to this scenario, in the United States specifically but also across the Western world as a whole, was to declare a “Crisis of Democracy” in which too many people were making too many demands upon the system, in which all forms of authority were under attack, and the legitimacy of those authorities were called into question. Elites of both the left and right saw this acceleration of democratic participation and activism as an assault upon their conception of what “democracy” should be – namely, a state that serves their interests alone. From the right, the U.S. Chamber of Commerce – and from the liberal internationalists, the Trilateral Commission – launched a major national and global attack upon the surge of democratic activism in what the Trilateral Commission referred to as an “excess of democracy.” The result of this attack: neoliberalism and debt. The two documents that were most influential in this attack on democracy were the “Powell Memo” of 1971 sent to the U.S. Chamber of Commerce which outlined a detailed program for how big business could reorganize society for its own interests, and the Trilateral Commission’s 1975 report, “The Crisis of Democracy,” which outlined an elite ideology which saw the problem of society being in an “excess of democracy” and that what is required is to correct the balance in favour of elites and increase apathy and passivity among the population. The Chamber of Commerce represents all the major business interests in the United States, while the Trilateral Commission (founded in 1973 by banker David Rockefeller), represents roughly 350 elites in the areas of academia, finance, business, government, foreign policy, media and foundations from North America, Western Europe, and Japan.

The result of this was to decrease government funding for education, increase tuition and other costs, increase debt for students and the general population as a whole (through credit cards, mortgages, loans, etc.), and to merge higher education and big business: the corporatization and privatization of universities.

As part of this process, knowledge was transformed into ‘capital’ – into ‘knowledge capitalism’ or a ‘knowledge economy.’ Reports from the World Bank and the Organization for Economic Cooperation and Development (OECD) in the 1990s transformed these ideas into a “policy template.” This was to establish “a new coalition between education and industry,” in which “education if reconfigured as a massively undervalued form of knowledge capital that will determine the future of work, the organization of knowledge institutions and the shape of society in the years to come.”[10]

Knowledge was thus defined as an “economic resource” which would give growth to the economy. As such, in the neoliberal era, where all aspects of economic productivity and growth are privatized (purportedly to increase their efficiency and productive capacity as only the “free market” can do), education – or the “knowledge economy” – itself, was destined to be privatized.[11]

Solving the ‘College Crisis’

In February of 2011, it was reported that the average debt for a Canadian family had reached over $100,000, spending 150% of their earnings. Thus, for every $1,000 in after-tax income, the average Canadian family then owes $1,500. The debt figures include mortgages, student loans, credit card debts, and lines of credit. In 1990, the average Canadian family was able to put roughly $8,000 into savings, in 2012, that number was at $2,500. So while the public is constantly told that the ‘recession’ is over, this is simply not true for the general population, though it may appear to be true in the quarterly reports of Canada’s multinational corporations and banks. A 2011 report indicated that, “17,400 households were behind in their mortgage payments by three or more months in 2010, up by 50 per cent since the recession began. Credit card delinquencies and bankruptcy rates also remain higher than before the recession.”[12]

By February of 2012, this rate of income-to-debt had not only failed to improve, but even got slightly worse, hitting a new record.[13] The state for Canadian families is indeed getting worse. More than half of the jobs created since the “end” of the “recession” went to those aged 55 and older, leaving the youth struggling to find jobs, while older workers have to either stay working longer, return from retirement because they can’t survive off of their pensions, and thus, young people are living at home longer and staying in school longer. The slight increases in hourly earnings has not kept up with inflation, and thus amounts to a loss of earnings, and income inequality continues to grow between the super-rich and everyone else.[14]

Mark Carney, Governor of the Bank of Canada (Canada’s central bank), is also Chairman of the Financial Stability Board, run out of the Bank for International Settlements (BIS) in Basel, Switzerland – the central bank to the world’s central banks – and which operates under the auspices of the G20. Carney had previously served as Deputy Governor of the Bank of Canada, the Canadian Department of Finance, and spent thirteen years with Goldman Sachs prior to that.

The Bank of Canada, like all central banks, serves the dominant elite interests of the nation, but also of the international financial elite more broadly. The board of directors of the Bank of Canada includes William Black, former CEO of Maritime Life, who sits on the boards of Dalhousie University, the Shaw Group, Standard Life of Canada, and Nova Scotia Business, Inc.; Philip Deck, CEO of Extuple, Inc. (a technology finance corporation), former managing partner with merchant banking company HSD Partners, and is on the board of a major Canadian think tank, the C.D. Howe Institute; Bonnie DuPont, former Vice President at Enbridge Inc., former director of the Canadian Wheat Board, a current director of agribusiness firm Viterra Inc, UTS, on the board of governors of the University of Calgary, member of the Institute of Corporate Directors, and is past president of the Calgary Petroleum Club; Jock Finlayson, Vice President of the Business Council of British Columbia, former Vice President of the Canadian Council of Chief Executives (an interest group made up of Canada’s top 150 CEOs), and a member of the Canada West Foundation; Daniel Johnson, a director of Bombardier, IGM Financial, Mackenzie Financial Corporation, Investors Group, and former Minister of Industry and Commerce in the Province of Quebec; David Laidley, Chairman Emeritus of Deloitte & Touche LLP, on the boards of Nautilus Indemnity Limited, ProSep Inc., EMCOR Group, Aviva Canada Inc., the Cole Foundation, and on several boards at McGill University. The rest of the directors of the Bank of Canada are almost exclusively businessmen or former government officials (two women in total), and all of them are white; so, naturally, they truly represent the struggling Canadian family.

In March of 2012, the Bank of Canada warned that household debt “remains the biggest domestic risk” to Canada’s economy. While part of the Bank’s role is to set interest rates, it has kept interest rates very low (at 1%) in order to encourage lending (and indeed, families have become more indebted as a result). Yet, the Bank says, interest rates will have to rise eventually. Economists at Canada’s major banks (CIBC, RBC, BMO, TD, and ScotiaBank) naturally support such an inevitability, as one BMO economist stated, “while rates are unlikely to increase in the near term, the next move is more likely to be up rather than down, and could well emerge sooner than we currently anticipate.” The chief economist at CIBC stated that, “markets will pick up on the slightly improved change in tone on the economy, and might move forward the implied date for the first rate hike.” This translates into: the economy is doing well for the big banks, therefore they will demand higher interest rates on debts, and plunge the Canadian population into poverty; the “invisible hand of the free market” in action.[15] Increased interest rates mean increased payments on debts, which means increased suffering for the indebted, who make up the general population.

As the Bank of Canada warns that interest rates will increase, perhaps as soon as this year, the Canadian people – heavily indebted – will suffer immensely and will likely fail to meet their interest payments. Since such a large majority of the debt and interest is in mortgages, this would potentially cause a major housing crisis, which is already at bubble proportions (especially in Vancouver, now the most expensive city to live in within North America), and will drag the middle class and the rest of the Canadian economy down with it. Even TD Bank has said the housing market is over-valued (i.e., artificially inflated), and warned of a coming “correction” (i.e., economic crisis).[16]

As the gap widens between the rich and everyone else in nearly every OECD (Organisation for Economic Cooperation and Development) country, Canada is no exception. The top 10% of Canadian earners make ten times as much as the bottom 10%. The top 1% in Canada saw their share of total income increase from 8.1% in 1980 to 13.3% in 2007, while the top 0.1% saw their share increase from 2% to 5.3%. Tax policies in Canada strengthen the wealth gap. In 1981, the tax rate for the top margin of earners was 43%, and in 2010, it was 29%. As the Secretary General of the OECD stated in December of 2011, “The social contract is starting to unravel in many countries… This study dispels the assumptions that the benefits of economic growth will automatically trickle down to the disadvantaged and that greater inequality fosters greater social mobility.” Thus, “inequality will continue to rise.”[17]

In a 2008 OECD study, Canada was singled out as one of the countries with the worst rates of widening inequality, stating that, “In the last 10 years, the rich have been getting richer, leaving both middle and poorer income classes behind.” The top 3.8% of Canadian households controlled 66.6% of all financial wealth by 2009, with rates set to increase. As the Conservative government in Canada continues to implement corporate tax cuts, this disparity will increase, with the Harper government providing $60 billion in corporate tax breaks, while maintaining a $30 billion budget deficit (public debt). Despite all the tax cuts for corporations, the money that is not spent on taxes tends to go to shareholders and very little goes toward investments or job creation, meaning that the benefits do not “trickle down,” but rather, as to be expected, trickle up. For Prime Minister Harper’s tax policies and programs, “The higher the income, the bigger the tax break.” The senior economist at the International Trade Union Confederation stated that, “The growing gap between the rich and the rest of us has many causes, including higher remuneration for top earners, much higher profits as a share of the economy, less bargaining power for workers, and less progressive taxes… Conservative tax policies will clearly aggravate the problem.”[18]

The Conference Board of Canada released a study in the fall of 2011 which stated that, “income inequality has been rising more rapidly in Canada than in the U.S. since the mid-1990s,” and on a global scale, “Canada has had the fourth-largest increase in income inequality among its peers.” The President of the Conference Board explained, “Even though the U.S. currently has the largest rich-poor income gap among these countries, the gap in Canada has been rising at a faster rate.”[19]

Among the OECD countries, the one with the highest rates of inequality was none other than the Petri-dish experiment of neoliberalism, Chile, followed by Israel, Italy, Portugal, the U.K., and the United States. While the top 10% of Canadian earners had an average income of $103,500, the bottom 10% had an average annual income of $10,260.[20]

While Canada is often hailed as the most promising nation to come out of the economic-financial crisis of 2008, since its banks were largely left out of the housing derivative market (and thus, were protected), the facts on the ground represent a different reality. As the Economist reported in 2010, of the 31 OECD nations, Canada ranked as the 22nd worst country in terms of child poverty, with one in ten Canadians (roughly 3 million) being poor, 610,000 of them being children. In November of 2010, it was reported that roughly 900,000 Canadians were dependent upon food handouts, a 9% increase from the previous year, with roughly 300,000 homeless people. The majority of the poor are single mothers, immigrants, aboriginal and disabled Canadians. Through the 1980s and 1990s (with the implementation of neolibral policies), welfare payments to these groups were slashed, with British Columbia as the most enthusiastic supporter of exacerbating child poverty, which stood at 10.4% by 2010.[21]

The cost of poverty is quite extensive:

* By 2011, poverty was said to cost the government between $72-86 billion per year;

* In the city of Hamilton, Ontario, there is a 21 year-difference in life expectancy between those who live in high and low-income neighborhoods;

* In March of 2010, nearly 900,000 Canadians had to go to food banks for food, 38% of them being children, an increase of 28% since March of 2008, the “highest level of food bank use ever”;

* In 2010, there were between 150-300,000 “visible” homeless in Canada, with another 900,000 “hidden” homeless, and 1.5 million families in “core housing need” and 3.1 million families in unaffordable housing;

* In 2010, 59% of Canadians (over 20 million Canadians) lived from paycheck to paycheck, “saying they would be in financial difficulty if their paycheque was delayed by a week”;

* In 2009, the average annual income of Canada’s best paid CEOs was $6.6 million, “155 times higher than the average worker’s income ($42,988);

* A third of all income growth in Canada over the past two decades has gone to the richest one percent of Canadians.”[22]

Canada’s Youth: A “Bankrupted Generation”

By January of 2009, Canadian students had a debt to the federal government of over $13 billion, with student loan debt increasing by $1.2 million every day. The Canadian Federation of Students said the obvious answer to this growing crisis was to make education “affordable.” Studies show the effects of student debt, reducing “the ability of new graduates to start families, work in public service careers, invest in other assets, volunteer, or even just take a lower paying job in their own field to get a foot in the door.” On top of the $13 billion owed to the Federal Government, Canadian students owed an additional $5 billion to provincial governments, and the figures do not include debt owed to banks, credit card companies or parents.[23] In short, Canada’s student youth are a “lost generation.”

In September of 2010, the Canadian Council on Learning published a report which indicated that, “students who graduate from college and university with high debt loads are putting off buying a house, having children or investing for the future.” The average debt load of a Canadian university graduate in 2009 was $26,680, and the average debt for college graduates was $13,600. These figures, it should be noted, do not take into account mortgages, credit card debt, lines of credit, or car loans.[24] This represented a doubling in the amount of student debt from 1990, and in 2005, the number of Canadian students needing loans to pay for their education had increased to 57%.[25]

In October of 2011, it was reported that Canadian student debt (to the Federal Government) will surpass $15 billion by 2013, which is the current ceiling set by the government in student loans. Thus, if it reaches the ceiling, the government will no longer (in theory) be able to provide student loans. The solution, according to the Canadian Federation of Students, does not mean eliminating the debt ceiling, which will only make the problem worse, but rather, in reducing the costs of education itself. As the national chairperson of the CFS stated, “The reality is that the job market is grim and students are facing their first interviews with a mortgage-sized debt.” Thus, once they begin work, they do not contribute to the economic growth of the country, but rather merely have to focus on paying interest and repaying debts. The cost of university education in Canada is estimated to be at $60,000, and some studies suggest that this will rise to $140,000 for those born in 2011. The average yearly undergraduate tuition fees were a 4.3% increase from the previous year, reaching $5,366.[26]

In 2011, almost two million Canadians had a student debt totaling $20 billion, and as the chairman of the Canadian Federation of Students stated, “We have an entire generation of people who now more than ever have to complete some form of post-secondary education just to get a job interview, with more than 70% of all new jobs requiring some degree or diploma. We are on the verge of bankrupting a generation before they even enter the workplace.” As job losses continue, and especially as the youth job market continues to decline, the number of full-time students tends to increase, and the availability of part-time work for students continues to decline. A post-secondary education no longer increases a “return on investment” through a lifetime, as it was once assumed. The overall student debt is not the most pressing immediate problem, but rather the “crippling interest rate attached to these government loans” which plunge youth into a deep crisis. So while interest rates are very low (in other lending, as set by the Bank of Canada at 1%), the government is charging 8% interest on student loans. Margaret Johnson, president of Solutions Credit Counselling Service Inc. in Vancouver stated that, “When the loan goes into default, the interest starts to compound. And then you have an absolute nightmare. The average debt I’m seeing is anywhere between $30,000 and $60,000. The payments are so high on some of these loans that the young person cannot live and make a payment. Instead of lowering the interest rate — or eliminating it, which I think is the best solution — the government extended the repayment term to 14 years. The fact that so many loans are in arrears proves this isn’t the answer.”[27]

Some things are worth repeating: the average debt for every Canadian household is over $100,000 and the average debt for a university graduate in Canada is over $26,000; nearly one million Canadians depend upon food banks for their food, poverty and inequality are increasing, homelessness is increasing; the rich are getting richer and everyone else is getting poor or poorer, and there is a horrible job market with few jobs available, let alone available to youth. So the “solution” – we are told – to the supposed “problem” of “competitiveness” in our universities… is to increase the burden, the cost, and the debt of students, families, and the general population; to increase tuition and student debt, to increase interest rates on all debts, and to plunge the population into abject poverty. It seems then, that Canadians, and the Western world in general (as these policies are being pushed throughout the G8 nations on the whole) are about to get a hard lesson in what our countries of the industrialized and supposedly “democratic” north have been doing to the rest of the world (Africa, Asia, Latin America) for decades and, indeed, centuries. What has been done abroad is now coming home to roost.

The conditions, restrictions, programs and policies that our nations have imposed upon Africa, Asia, and Latin America for the past four decades have plunged those countries into poverty, allowed for the unhindered control and extraction of their resources for our corporations, put their nations into the debt of our banks, exploited their populations for cheap labour, and propped up ruthless dictators to repress the people if they ever get wise and want to change their society. While our nations of course continue in their raping and pillaging of the world, now they have also turned their attention – and absolute disregard for humanity – to their domestic populations. The same banks, international institutions, nations, organizations and even individuals who promoted the policies which led to the impoverishment and punishment of much of the world’s population are now telling us that these same policies are the “solutions” to our current crises, just as they told the populations of Africa, Asia, and Latin America. If we listen to these same people, submit to the same policies, and accept the same ideologies which have caused so much destruction and devastation around the world, and expect different results at home, we deserve what we get. Naturally, then, we must stop accepting and consenting to the hegemony and power of our elites and their institutions and ideologies. This means that we have to actively create alternatives, not simply protest against their programs, or demand reforms, rearranging deck chairs on the Titanic. The boat is sinking, it doesn’t matter how it looks on the way down. It’s time for a new system altogether. One cannot demand from others to create a new system, but must actively create it themselves.

In the next part of this series, “Class War and the College Crisis,” I will be discussing the coming economic crisis for Canada, which has thus far been hailed as the “safest” nation emerging from the 2008 “recession,” a myth that will soon be broken. As Canada, and much of the rest of the world, begin their rapid descent into an economic depression, the above-mentioned statistics regarding debt, poverty, and inequality will get worse. As the social and economic crisis deepens, our governments will continue to show in whose interests they truly rule: with batons, tear gas, beatings, mass arrests, detention camps, and the growth and development of a police state surveillance society, our governments will reveal that they rule for bankers, corporations, and oligarchs. The democratic façade will wash away. It is within these circumstances that Canadians, and the wider world in general, must seek to create a true democratic system. First, however, we must recognize and understand the system in which we live for what it is: a State-Capitalist society ruled by a power-mad oligarchy. The next part of this series will be taking a look at what this power-mad oligarchy is doing and will be doing to Canada’s economy and society in the coming years. Here’s a hint: it doesn’t benefit YOU!

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada, writing on a number of social, political, economic, and historical issues. He is also Project Manager of The People’s Book Project. He also hosts a weekly podcast show, “Empire, Power, and People,” on BoilingFrogsPost.com.

Notes

[1]            CRA, What are the income tax rates in Canada for 2012? Canada Revenue Agency:

http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html

[2]            Finances Québec, “A Fair and Balanced University Funding Plan: To Give Québec the Means to Fulfill its Ambitions,” The Government of Québec, 2011-2012 Budget, page 7.

[3]            CFS, Tuition Fees, The Canadian Federation of Students:

http://cfs.bc.ca/index.php/section/49

[4]            Ibid.

[5]            Press Release, “TD Economics outlines plan for prosperity in Quebec report,” Newswire, 10 April 2007:

http://www.newswire.ca/fr/story/178423/td-economics-outlines-plan-for-prosperity-in-quebec-report

[6]            CNW, “Déjà Vu: O’Neill Report Recycles Dated, Discredited Tuition Fee Myths,” Newswire, 17 September 2010:

http://www.newswire.ca/en/story/673917/deja-vu-o-neill-report-recycles-dated-discredited-tuition-fee-myths

[7]            Alison Kershaw, “Thousands of students to stage walkout protest,” The Independent, 12 March 2012:

http://www.independent.co.uk/news/education/education-news/thousands-of-students-to-stage-walkout-protest-7562129.html

[8]            Carla Rivera and Larry Gordon, “Occupy protests bring small yet intense crowds to state campuses,” Los Angeles Times, 1 March 2012:

http://articles.latimes.com/2012/mar/01/local/la-me-student-protests-20120302

[9]            Giles Tremlett, “Fighting breaks out in Barcelona as students protest over education cuts,” The Guardian, 29 February 2012:

http://www.guardian.co.uk/world/2012/feb/29/fighting-barcelona-students-protest-education-cuts?newsfeed=true

[10]            Mark Olssen and Michael A. Peters, “Neoliberalism, Higher Education and the Knowledge Economy: From the Free Market to Knowledge Capitalism,” Journal of Education Policy (Vol. 20, No. 3, May 2005), page 331.

[11]            Ibid, pages 338-339.

[12]            CTV News Staff, “Average Canadian family debt hits $100,000,” CTV News, 17 February 2011:

http://www.ctv.ca/CTVNews/Canada/20110217/family-debt-110217/

[13]            Why are Canadian families falling further into debt?, The Globe and Mail, 14 February 2012:

http://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/why-are-canadian-families-falling-further-into-debt/article2337540/

[14]            Tavia Grant, “Financial security ‘elusive’ for many Canadian families,” The Globe and Mail, 22 March 2012: http://www.theglobeandmail.com/report-on-business/economy/economy-lab/daily-mix/financial-security-elusive-for-many-canadian-families/article2377592/

[15]            Gordon Isfeld, “Bank of Canada says household debt ‘biggest risk’ to economy,” The Leader Post, 9 March 2012:

http://www.leaderpost.com/business/Bank+Canada+says+household+debt+biggest+risk+economy/6274564/story.html

[16]            John Morrissy, “Household debt a mounting concern as rates appear set to rise,” The Montreal Gazette, 23 March 2012:

http://www.montrealgazette.com/business/Household+debt+mounting+concern+rates+appear+rise/6347875/story.html

[17]            CBC, Wealth gap widens to 30-year high, CBC News, 5 December 2011:

http://www.cbc.ca/news/canada/story/2011/12/05/oecd-rich-poor-gap.html

[18]            Les Whittington, “Tax policies may aggravate gap between rich and poor,” Toronto Star, 27 May 2011:

http://www.thestar.com/news/canada/article/998648–tax-policies-may-aggravate-gap-between-rich-and-poor

[19]            Tavia Grant, “Income inequality rising quickly in Canada,” The Globe and Mail, 13 September 2011:

http://www.theglobeandmail.com/report-on-business/economy/economy-lab/daily-mix/income-inequality-rising-quickly-in-canada/article2163938/

[20]            CTV News Staff, “OECD report finds income inequality rising in Canada,” CTV News:

http://www.ctv.ca/CTVNews/TopStories/20111205/organization-economic-cooperation-development-oecd-inequality-report-canada-111205/#ixzz1pycGLl6e

[21]            Poverty in Canada: Mean Streets, The Economist, 25 November 2010:

http://www.economist.com/node/17581844

[22]            CTV News Staff, “Canada Student Loan debt tops $13B, figures show,” CTV News, 21 January 2009:

http://www.ctv.ca/CTVNews/Canada/20090121/student_loans_090121/

[23]            CTV News Staff, “Canada Student Loan debt tops $13B, figures show,” CTV News, 21 January 2009:

http://www.ctv.ca/CTVNews/Canada/20090121/student_loans_090121/

[24]            CBC, “Student debt limits post-grad options,” CBC News, 22 September 2010:

http://www.cbc.ca/news/story/2010/09/22/con-student-debt.html

[25]            QMI Agency, “Student debt doubled over 20 years: Study,” Toronto Sun, 22 September 2010:

http://www.torontosun.com/news/canada/2010/09/22/15435176.html

[26]            Sharon Singleton, “Action needed on student debt: CFS,” Toronto Sun, 17 October 2011:

http://www.torontosun.com/2011/10/17/action-needed-on-student-debt-cfs

[27]            Mary Teresa Bitti, Student debt bankrupting a generation, The Financial Post, 4 June 2011:

http://www.financialpost.com/news/Student+debt+bankrupting+generation/4874861/story.html

Of Prophets, Power, and the Purpose of Intellectuals: Class War and the College Crisis, Part 3

Of Prophets, Power, and the Purpose of Intellectuals: Class War and the College Crisis, Part 3

By: Andrew Gavin Marshall

Walter Lippmann


Part 1: The “Crisis of Democracy” and the Attack on Education

Part 2: The Purpose of Education: Social Uplift or Social Control?

Intellectual history is written by intellectuals and educational history is written by educators; thus, it would be inevitable that the flaws and failures of each are buried beneath, while the advances and accomplishments are exaggerated or over-estimated. There is, however, a seemingly consistent dichotomy which has evolved and persisted throughout intellectual and educational history: on the one hand, you have the much larger element – both in terms of the general purpose of education and in the general activities and ideas of intellectuals – who support and strengthen institutionalized power structures; on the other hand – much more a break from the ‘traditional’ impetus and activities of education and intellectuals – you have the smaller element, the off-shoots and oddities, which empowers the masses against institutionalized power, and with the intellectuals who speak out, articulate, mobilize, and justify the empowering of the people against that of the dominant structures of society. Therein lies the dichotomy: one form of education is for social control and domination, the other is for social uplift and rejuvenation; one type of intellectual is a programmatic priest for the proselytization of power, the other is an energetic and empowering enemy of entrenched elites.

A Eulogy for Education: Situating the Social Sciences as Structures of Social Control

Whether public or private, the key issue at hand is that of the utility – or purpose – of higher education. Conventional wisdom inflates the classical liberal concept of higher education as a social good, one which may be funded by the state in order to promote the general well-being of society, as inherently cultural institutions designed to raise the intellectual, spiritual, moral, and philosophical standards of society. A more critical history of education tends to downplay the “social good” theory in place of a “social control” theory of education, and specifically, of the social sciences. In this conception, education was designed to produce professional ‘technicians’ who would – using the techniques of science, rationality, and reason – study social problems with a desire to find and recommend specific policies and programs to ameliorate those problems – to promote reforms to the social system – in order to maintain “order.” Order, in this case, is understood as maintaining the social hierarchy. We understand “social order” as the security of the “social hierarchy” precisely because ‘disorder’ is understood as the opposite of this: a threat to the prevailing social hierarchy and institutional structure of society. Order is maintained through manufacturing ideologies, implementing policies, and undertaking programs of social engineering all with a desire to establish ‘social control.’

For this to be undertaken, it was essential for the social sciences to be separated into distinct spheres: Sociology, Political Science, Economics, and Psychology, for example. This superficial separation established each discipline as one for “expertise” and “professionalism,” whereby those who were trained to understand and partake in politics would study political science, achieving degrees in their “specialty” which would make them socially acknowledged “experts” in their fields. Academic journals reinforce these divisions, focusing primarily on a particular and specific discipline, providing a forum for academics and intellectuals to discuss, debate, and disseminate ideas related to the study and understanding of that discipline and its related topics. The effect, however, is that each discipline remained isolated from other forms of knowledge and, more importantly, that knowledge remained isolated from the general public, whom it was supposed to inform and empower (in theory).

Logic, of course, will tell you that in the real world, politics, economics, sociology and psychology all interact and become intertwined, intersected and interdependent. To add to that, of course, we have other technological, scientific, spiritual, cultural, environmental and historic factors that all merge to create what we broadly call “society.” If our aim is, as it should be, to understand society – to identify its problems and work to resolve them – we therefore would logically need a broader understanding of the social world, which would necessarily require a far more comprehensive, expansive, and multi-disciplinary historical examination of our world and its interacting forms of knowledge. It can be argued, however, that this is too demanding upon the academic and thus, unreasonable and unlikely. Therefore, it is argued, producing “experts” in specific areas would allow for a simultaneous understanding of these various spheres of society, and to effect change in each sector independent of one another. This raises an important question: is an “expert” in Political Science capable of understanding the political world? If they do not take into account economic, social, cultural, scientific, technological and other historical facets of the social world which all interact with the political realm, how can they logically understand the political realm outside of those interactions? In short, the political world does not operate within a vacuum and outside of interactions with other social phenomena, so the claim that they are “professionals” on understanding the social world as a whole, let alone “experts” in the political world, is dubious at best.The fallacy of this concept to produce useful knowledge was eventually acknowledged and educational managers (such as the major foundations) began to support ‘inter-disciplinary’ research to promote at least a more comprehensive understanding than previously existed.

Despite this inherently elitist self-serving conception of social control, the focus – purpose and utility – of education (and specifically the social sciences) on the study and amelioration of social problems inevitably gave rise to ideas, actors, and movements which saw beyond the rigid confines of the educational and knowledge-production system itself, reaching beyond the disciplines and into a more historically-based understanding. These broader understandings typically emerged from historians and philosophers, who must – as stipulated by their very disciplinary focus – acknowledge a multiplicity of factors, spheres, ideas, actors and areas of relevance to any given time and place of human social reality. History, by its very nature, is interdisciplinary: the historian must always acknowledge economic, social, political, and other cultural phenomena in each circumstance being studied.

As an example of these biases and disciplinary obscurities, let’s take a brief look at Political Science. In Political Science, when studying International Relations, you generally study two major theories of international politics: Liberalism, the idea that peace and prosperity between states grows as economic activity increases between them, and that of Realism/Mercantilism, whereby states are viewed as self-interested and the international arena as anarchic, and thus, nation states simply act to serve their own interests (and should). Both theories, of course, serve power. Unless studying the very specific focus of Global Political Economy (and specifically from a critical perspective), Political Science students are not exposed to or confronted with information or ideas which discuss the roles of financial and economic institutions and actors (banks, corporations, etc.) in determining foreign or public policy. Such perspectives are not studied, but simply assumed to be the product of “interested ideology” as opposed to “disinterested knowledge.” Critical theories are rarely acknowledged, let alone studied, and the general use of the word “ideology” is seen as negative, in that, it is not a legitimate focus for discussion or analysis. I personally know of a political science professor who taught a class on ‘Nationalism’ in which a student wrote an essay on ‘class.’ The professor informed the student that she couldn’t discuss “class” because it was “ideology,” and therefore, not disinterested knowledge. Of course, the fact that he was teaching a course on ‘nationalism,’ which itself, is an ideology, did not even come into consideration.

The difference in ideology then, is that the word is used to deride and dismiss theories and ideas which challenge, critique, or oppose power, hierarchy, and the status quo. Those ideas, theories, philosophies and perspectives which support power, hierarchy, and the status quo, are not presented as “ideology,” but as “disinterested knowledge,” as a fact, not in need of proof, but of an assumed nature. They are simply accepted, and are therefore, not ideology. This is also widely reflected in the differences of the academic journals, between those which are establishment and elitist, and those which are critical and allow for more dissent. An example is Foreign Affairs, the premier foreign policy journal, run by the Council on Foreign Relations, the most influential think tank in the United States. In this journal, the articles and essays, written by various “experts” and active, former, or prospective policy-makers and those who hold seats of power, contain largely little or no citations whatsoever. All the ‘facts’ and ideas stated within the articles do not need citations or references because they are ideas which support the status quo, and therefore, they simply reflect the ‘perceived’ realities of society. Now take a journal like Third World Quarterly, which tends to focus on the effects of foreign policy upon the ‘Third World’ nations of the Global South, often highly critical, allowing for major dissenting scholars to have an outlet for their research and ideas. These journal articles are typically and necessarily flooded with citations, sources and references. This is because ideas and facts which challenge the prevailing perception of social reality – the status quo – are treated far more critically and scrutinized to a significant degree.

Critical scholars put their entire reputation and career on the line in taking on controversial topics, and thus, they must provide extensive evidence and citations for all their assertions. Thus, a scholar who contends that – “the United States is an imperial nation which undermines democracy and the self-determination of people around the world” – must provide extensive, detailed, elaborate and concise references and citations. Even then, the scholar is likely to be either ignored or attacked with rhetoric proclaiming them to be “ideologically biased” or worse. On the other hand, a scholar who contends that the United States is a democratic peace-loving nation which benevolently seeks to spread democracy and freedom around the world requires no supporting evidence, citations, or references, simply because it serves power, supports the status quo, and regurgitates the ideas emerging from the institutions of power themselves (such as the State and media), and therefore, no major institutions will challenge the assertions nor subject them to scrutiny. For example, there are entire books written criticizing Noam Chomsky and subjecting his research and writing to extensive scrutiny, pointing out miniscule mistakes in his citations, presenting them as deliberate methods of manipulation. On the other hand, prominent scholars who refer to America as a “benevolent empire” or as the “protector of democracy” around the world are rarely challenged, let alone scrutinized. If scrutiny occurs, it is from the critical scholars, writing in more critically-inclined journals, and thus, their research tends to be disseminated only to each other and stays confined within that small social group. On the other hand, scholars who support power are invited on television, quoted in newspapers, work with think tanks in formulating policy, take part in international conferences, and are invited into the corridors of power in order to implement policy.

Serving power obviously allows for a scholar to rise through the social hierarchy with relative ease. For those scholars who challenge power and the status quo, while entry into positions of power and influence are generally denied, there is still a necessity for toleration among the powerful. The major foundations (Rockefeller Foundation, Carnegie Corporation, Ford Foundation, etc.) often fund critical scholars and journals, not out of a desire to promote or support their ideas, but in order to keep critical scholars  “professionalized,” to keep them as institutionalized academics. If there were no forums, journals, conferences or venues for the discussion, dissemination and debate of critical scholars and ideas, they would have to turn to other avenues for the dissemination of ideas and knowledge, which generally leads to the public sphere, of community involvement, activism, or populist politics. With foundations providing funding for critical scholars, journals, and conferences, the academics remain dependent upon the institutional structure of academia, and their ideas do not reach the wider public, and thus, their critiques are ineffective and do not promote change or understanding within the general population. Thus, such a program of financing provides a “release valve” for intellectual dissent, to keep critical or radical scholars institutionalized and prevent them from becoming mobilized and activist-oriented.

Still, in spite of all the deleterious factors for the pursuit of genuine knowledge with the purpose of empowerment through (instead of power over); the fact that the focus was on ‘social problems’ led inevitably to the generation of activist-oriented intellectuals, for those who could transcend the confines of narrow structures of knowledge. It is not to say that when these intellectuals surfaced, so too did the social movements, but rather that as social movements emerged, progressed, and developed, activist-oriented intellectuals took note, and began providing a philosophical and intellectual basis for the movement to exist and move forward. In short, it was a confluence of different circumstances both within the academic institutions and in the wider society – national and global – which led to the origins of these intellectual leaders, critics, activists, and philosophers. These are the individuals that the Trilateral Commission referred to in its report on the “Crisis of Democracy” as “value-oriented intellectuals.”

Dissident Value-Oriented Intellectuals versus Technocratic Policy-Oriented Intellectuals

In the early 20th century, as the concepts and ideas of “public opinion” and “mass democracy” emerged, the dominant political and social theorists of the era took to a debate on redefining democracy. It was an era of social unrest, radical political ideologies and activists, labour unrest and rebellion, extreme poverty, war, and middle-class insecurity (sound familiar?). Central to this discussion on redefining democracy were the books and ideas of Walter Lippmann. With the concept of the “scientific management” of society by social scientists standing firm in the background, society’s problems were viewed as “technical problems” (as in, not structural or institutional) intended to be resolved through rational professionals and experts. Just as with Frederick Taylor’s conception of “scientific management” of the factory, the application of this concept to society would require, in Lippmann’s words, “systematic intelligence and information control,” which would become “the normal accompaniment of action.” With such control, Lippmann asserted, “persuasion… become[s] a self-conscious art and a regular organ of popular government,” and the “manufacture of consent improve[s] enormously in technique, because it is now based on analysis rather than rule of thumb.”[1] Thus, for elites to maintain social control in the tumultuous new age of the 20th century, they must “manufacture consent” of the people to support the existing power structures.

In 1922, Lippmann wrote his profoundly influential book, Public Opinion, in which he expressed his thoughts on the inability of citizens – or the public – to guide democracy or society for themselves. The “intellectuality of mankind,” Lippmann argued, was exaggerated and false. Instead, he defined the public as “an amalgam of stereotypes, prejudices and inferences, a creature of habits and associations, moved by impulses of fear and greed and imitation, exalted by tags and labels.”[2] Lippmann suggested that for the effective “manufacture of consent,” what was needed were “intelligence bureaus” or “observatories,” employing the social scientific techniques of “disinterested” information to be provided to journalists, governments, and businesses regarding the complex issues of modern society.[3] These essentially came to be known and widely employed as think tanks, the most famous of which is the Council on Foreign Relations, founded in 1921 and to which Lippmann later belonged as a member.

In 1925, Lippmann wrote another immensely important work entitled, The Phantom Public, in which he expanded upon his conceptions of the public and democracy. In his concept of democratic society, Lippmann wrote that, “A false ideal of democracy can lead only to disillusionment and to meddlesome tyranny,” and to prevent this from taking place, “the public must be put in its place… so that each of us may live free of the trampling and the roar of a bewildered herd.”[4] Defining the public as a “bewildered herd,” Lippmann went on to conceive of ‘public opinion’ not as “the voice of God, nor the voice of society, but the voice of the interested spectators of action.” Thus, “the opinions of the spectators must be essentially different from those of the actors.” This new conception of society, managed by actors and not the “bewildered herd” of “spectators” would be constructed so as to subject the managers of society, wrote Lippmann, “to the least possible interference from ignorant and meddlesome outsiders.”[5] In case there was any confusion, the “bewildered herd” of “spectators” made up of “ignorant and meddlesome outsiders” is the public, is we, the people.

Lippmann was not an idle intellectual whose ideas are anachronisms of history, he was perhaps the most influential political theorist of his day, advising presidents while still in his 20s, Woodrow Wilson invited him to organize his war-time propaganda ministry, the Committee on Public Information (which was actually Lippmann’s idea to create), and his ideas held enormous resonance and received immense support from elite institutions and individuals. The influence of Lippmann’s ideas can be seen in the political machinery of the party system, the media, academia, think tanks, the construction of the consumer society, the activities of philanthropic foundations and a variety of other avenues and activities.

Several decades later, in the midst of another major social crisis in the 1960s, elite intellectuals again engaged in a discussion on the direction of society, social engineering, social control, and the role of “intellectuals” in society.

McGeorge Bundy, a member of the Council on Foreign Relations (and later the Trilateral Commission), was the U.S. National Security Adviser, responsible for organizing foreign policy under Kennedy and Johnson (largely responsible for the Vietnam War), and in 1966, he went to become President of the Ford Foundation. In 1967, Bundy wrote an article for Foreign Affairs, the journal of the Council on Foreign Relations which McGeorge’s brother William Bundy (a former CIA analyst and State Department staffer in the Kennedy and Johnson administrations) would be editor of from 1972-1984, after declining the offer from David Rockefeller to be the Council president. McGeorge wrote in his 1967 article that:

The end of 1966 finds the United States with more hard business before it than at any time since 1962. We are embattled in Viet Nam; we are in the middle of a true social revolution at home; and we have undiminished involvement with continents and countries that still refuse to match our simpler pictures of them.[6]

Bundy lamented the idea that, “American democracy has no enduring taste for imperialism,” because despite all of the “nation’s interests overseas, the boys always want to come home.” Bundy then went on to explain the benefits of questioning particular policies the United States pursues, but not to question the entire premise of America’s foreign policy in general (namely, that of imperialism). Instead, Bundy acknowledged that most of the dissent and argument on the Vietnam War was in terms of “tactics, not fundamentals,” though, he acknowledged, “[t]here are wild men in the wings,” referring to those intellectuals who question the basis and fundamentals of foreign policy itself.[7] Such “wild men in the wings” and “value-oriented intellectuals” present such a monumental threat to established elite interests. As the Trilateral Commission’s report noted in 1975:

At the present time, a significant challenge comes from the intellectuals and related groups who assert their disgust with the corruption, materialism, and inefficiency of democracy and with the subservience of democratic government to “monopoly capitalism.” The development of an “adversary culture” among intellectuals has affected students, scholars, and the media. Intellectuals are, as [Political Economist Joseph] Schumpeter put it, “people who wield the power of the spoken and the written word, and one of the touches that distinguish them from other people who do the same is the absence of direct responsibility for practical affairs.” In some measure, the advanced industrial societies have spawned a stratum of value-oriented intellectuals who often devote themselves to the derogation of leadership, the challenging of authority, and the unmasking and delegitimation of established institutions, their behavior contrasting with that of the also increasing numbers of technocratic and policy-oriented intellectuals.[8]

The Trilateral Commission report later expanded upon the concept of the role of the intellectual in society. It stated that in the cultural history of Western Europe, “intellectuals are romantic figures who naturally get a position of prominence through a sort of aristocratic exaltation.” However, in periods of “fast changes,” they often come to lead and join “the fight against the old aristocratic tradition.” This, the Trilateral Commission contended, represented an “internal upsetting of the traditional intellectual roles.” This was identified as a “crisis of identity” in which, “[i]t has become a battle between those persons who play the audience, even if it is a protest type, and those who contribute to the process of decision-making.” Claiming that protest-oriented intellectuals are among “the audience” reinforces Lippmann’s assertion some decades earlier that the public are mere “spectators,” not capable of nor desired to engage meaningfully in politics. For the Trilateral Commission, the rise of “value-oriented intellectuals” was the result of the “intellectualization” of the “post-industrial society” in which their particular fields (namely, the humanities) became less useful in “application” and “practical use,” and thus, society “tends to displace traditional value-oriented intellectual disciplines to the benefit of action-oriented ones, that is, those disciplines that can play a direct role in policy-making.”[9] This would of course include the authors of the Trilateral Commission report itself, namely Samuel Huntington, who went on to work on the National Security Council under Zbigniew Brzezinski (co-founder of the Trilateral Commission) in the Jimmy Carter administration.

French philosopher Jean-Paul Sarte had long discussed the role of radical intellectuals in society and social movements. Following the major youth and student protests and movements of 1968, Sarte felt that the first duty of the radical intellectual is to “suppress himself as intellectual” and put his skills “directly at the service of the masses.” In a 1971 interview, Sarte was asked the question, “What should the radical intellectual do?” Sarte responded:

Today it is sheer bad faith, hence counterrevolutionary, for the intellectual to dwell in his own problems, instead of realizing that he is an intellectual because of the masses and through them; therefore, that he owes his knowledge to them and must be with them and in them: he must be dedicated to work for their problems, not his own.[10]

Thus, radical intellectuals should be creating revolutionary newspapers directed toward the masses, creating “a language that explains the necessary political realities in a way that everyone can understand.” Sarte was then asked, “Are you saying… that the responsibility of the intellectual is not intellectual?” He replied:

Yes, it is in action. It is to put his status at the service of the oppressed directly… the intellectual who does not put his body as well as his mind on the line against the system is fundamentally supporting the system and should be judged accordingly.[11]

As such, it is the responsibility of the radical intellectual to not lead, but follow and support the movements and struggles of the masses. For Sarte, the intellectual’s “privileged status is over.” Thus, “only activism will justify the intellectual.”[12] This is, in fact, a direct counter – or parallel – to the concept of the policy-oriented or technocratic intellectual, who directly partakes in the decision-making process. Just as the “technocratic intellectual” who partakes in the decisions of the institutions of power is “policy-oriented,” the radical intellectual directly partakes in the process of resistance (though not necessarily the decision-making process), and is also “action-oriented.”

In 1967, famed linguist Noam Chomsky wrote an essay in which he voiced his political opposition to the Vietnam War, entitled, “The Responsibility of Intellectuals.” In the article, which provoked widespread discussion and debate, Chomsky wrote:

With respect to the responsibility of intellectuals, there are still other, equally disturbing questions. Intellectuals are in a position to expose the lies of governments, to analyze actions according to their causes and motives and often hidden intentions. In the Western world, at least, they have the power that comes from political liberty, from access to information and freedom if expression. For a privileged minority, Western democracy provides the leisure, the facilities, and the training to seek the truth lying hidden behind the veil of distortion and misrepresentation, ideology and class interest, through which the events of current history are presented to us.[13]

As Chomsky explained, “If it is the responsibility of the intellectual to insist upon the truth, it is also his duty to see events in their historical perspective.”[14] This is, of course, in counter to the “technical experts” of social science, seeking to remedy “technical problems” of society in a “responsible” manner. In this sense, “responsibility” has a dual use: it is used by elites to denote those intellectuals who are “responsible” to the elite, and it is also used by dissenters to denote a “responsibility” to the truth and the people. Thus, the use of the word – whether one describes dissenters as “responsible” or “irresponsible” – tends to express more about those who use the term rather than those for whom they are applying the term.

This is, it must be acknowledged, not a new phenomenon. It is found throughout human history, though often called different things in different times and places. It can be found among the ancient philosophers and, indeed, the prophets of the Biblical era. As Noam Chomsky has elsewhere explained, “The history of intellectuals is written by intellectuals, so not surprisingly, they are portrayed as defenders of right and justice, upholding the highest values and confronting power and evil with admirable courage and integrity. The record reveals a rather different picture.” Chomsky further wrote:

A large part of the Bible is devoted to people who condemned the crimes of state and immoral practices. They are called “prophets,” a dubious translation of an obscure word. In contemporary terms, they were “dissident intellectuals.” There is no need to review how they were treated: miserably, the norm for dissidents.

There were also intellectuals who were greatly respected in the era of the prophets: the flatterers at the court. The Gospels warn of “false prophets, who come to you in sheep’s clothing, but inwardly are ravening wolves. By their fruits ye shall know them.”[15]

In his book, Sage, Priest, and Prophet: Religious and Intellectual Leadership in Ancient Israel, Joseph Blenkinsopp explained the use of the term ‘prophet’ in both historical and contemporary context. In the contemporary context, it is generally associated with “prediction, emotional preaching, [and] social protest,” though the Hebrew term for it (nabi), has been so widely and differently used to describe various individuals, including its usage to describe many who functioned in “sanctuaries and royal courts,” in which case, they would be individuals who serve power. On the other hand, for those that challenged the power structures, Blenkinsopp argued that they were essentially “dissident intellectuals.”[16]

Again, this drew a distinction in ancient times with the word ‘prophet’ to that we hold today with the word ‘intellectual’: denoting both those who serve and challenge power. Blenkinsopp explained that the prophets who were “dissident intellectuals” in the Biblical era “collaborated at some level of conscious intent in the emergence of a coherent vision of a moral universe over against current assumptions cherished and propagated by the contemporary state apparatus, including its priestly and prophetic representatives.” In other words, they challenged the institutions of power which existed during that era. These dissident intellectuals – much like those of the modern era – “often play a socially destabilizing role in taking an independent, critical, or innovative line over against commonly accepted assumptions of a dominant ideology.” In fact, stipulated Blenkinsopp, “radical change rarely, if ever, comes about without the cooperation or intervention of an intellectual elite.”[17]

Blenkinsopp described an era in which these prophets emerged in protest “at the accumulation of wealth and the luxurious lifestyle enjoyed by the few at the expense of the many.” The prophet – or dissident intellectual – Amos had lashed “out at those who store of the (fruits of) violence and robbery,” and who “live at ease in houses, the walls and furniture of which are inlaid with ivory.” Amos and another dissident intellectual, Isaiah, had “nothing but scorn for the idle rich and depict.” Blenkinsopp wrote:

The concentration of power and resources in the hands of the few, in this instance the political and hierocratic establishment and its clientele, is always liable to generate protest, especially if it is accompanied by the impoverishment of the many. A few decades after Amos, Hesiod claimed divine inspiration in denouncing unjust rulers.[18]

Thus, whether Hesiod, Hosea, Micah, or Isaiah, “all four belonged to the very small minority of the population that was literate and educated, and it was from that socially privileged position that their protest was launched.” These dissidents, however, were of a very small minority. For literally hundreds of years, the ‘prophets’ (intellectuals) of the era were “almost exclusively supportive” of power, “and there is no breath of challenge to the political or social status quo.” It was “in Israel and, to a lesser extent, Greece [where] a tradition of dissent and social protest develop[ed].” How were these dissident intellectual ‘prophets’ of the era treated? The established powers attempted to silence Amos and Micah, Hosea was ridiculed as “a fool,” and Isaiah was driven into “retirement” after an attempt to intervene in foreign policy matters.[19] So, while we claim them as prophets today, in their time they were treated as pariahs.

So whether in Biblical Israel, nearly 800 years before the arrival of Christ, or in the 1975 Trilateral Commission report, “dissident intellectuals” are to be feared and reviled by established powers, and it is clear that these powers will always attempt and actively take measures to minimize, ostracize, repress or eliminate such forms of dissent.

Thus, we have come to see the corporatization of our universities and the marginalization of dissident intellectuals in the neoliberal era. As Bronwyn Davies et. al. wrote in the European Journal of Education, few radical intellectuals of the 1960s and 70s “imagined how dangerous their work with students might seem to be to those in government or to the global leaders of big business and industry.” This was, of course, addressed by the Trilateral Commission, which above all represents the interests of the financial, corporate, political, and intellectual elite. This elite felt that “they must establish a new order to make the world more predictable, and they saw those radical intellectuals – both academics and journalists – as contributing to the dangerous disorder.”[20]

The Trilateral Commission was founded by two individuals: one a representative of high finance (David Rockefeller, Chairman and CEO of Chase Manhattan Bank), and the other a representative of the intellectual elite (Zbigniew Brzezinski, professor of political science, member of the Council on Foreign Relations, foreign policy official). Brzezinski wrote a book in 1970, Between Two Ages: America’s Role in the Technetronic Era, in which he laid out the problems of the technological and electronic era (hence, “tehcnetronic”) and elaborated on strategies to resolve them: politically, economically, and socially, including the formation of a “community of developed nations” to jointly work together in managing the world for their own benefit. Rockefeller, who was also a top official at the Council on Foreign Relations and also attended meetings of the Bilderberg group with Brzezinski (another exclusively elitist international think tank linking Western Europe and North America), took note of the book and its arguments, and recruited Brzezinski to help put together this “community,” and in 1973, the Trilateral Commission was formed. Brzezinski, in terms of intellectual influence, is perhaps as close to a Walter Lippmann for the globalized era as one could get. For decades, he has been a major foreign policy official with significant influence, sitting on the boards of major elite think tanks that produce policy plans which are implemented in the government, acting in an advisory capacity to almost every president since Jimmy Carter, and in terms of his still close relationship with the ruling financial oligarchy (namely, the Rockefellers).

In his book, Brzezinski discussed the need for “programmatic engineering” to manage and change American culture, of which he emphasized the roles played by education and the mass media over the alternative avenues of churches and traditional customs.[21] The manufacturing of culture, posited Brzezinski, was an American ‘obligation’:

Change in educational procedures and philosophy should also be accompanied by parallel changes in the broader national processes by which values are generated and disseminated. Given America’s role as a world disseminator of new values and techniques, this is both a national and a global obligation. Yet no other country has permitted its mass culture, taste, daily amusement, and, most important, the indirect education of its children to be almost exclusively the domain of private business and advertising, or permitted both standards of taste and the intellectual content of culture to be defined largely by a small group of entrepreneurs located in one metropolitan center.[22]

Brzezinski also discussed one of the more relevant and indeed, concerning facets of the Technological Revolution. Of course, writing of this as a ‘concern’ is in terms of Brzezinski writing from the perspective of an elite academic and strategic thinker, and thus, representing the elite class and their overall concerns. Namely, Brzezinski wrote on the prospects of a revolution against this process and the power structures involved, explaining that these groups are likely to emerge in both the developing world and industrialized world in opposition to the process of ‘modernization,’ which Brzezinski refers to as the advancement of the ‘Technetronic Revolution.’ In the Global South (the “Third World”), the revolutionary class is likely to emerge from the educated classes who are deprived of social opportunities fitting with their intellectual expectations. In the industrialized West, however, this “revolutionary intelligentsia” is most likely to emerge from the “middle-class intellectual equivalents” of the revolutionary class in the developing world. Thus, it would emerge among the educated middle-classes of the West, who are deprived of opportunities attuned to their education, thus creating a ‘crisis of expectations.’ Brzezinski wrote that the Technetronic Revolution had created a “social anachronism,” in which these groups may hold onto anti-industrial values and could possibly, even in the more modern countries, effectively block the modernization of their societies, “insisting that it be postponed until after an ideological revolution has taken place.” Brzezinski explained:

In this sense the technetronic revolution could partially become a self-limiting phenomenon: disseminated by mass communications, it creates its own antithesis through the impact of mass communications on some sectors of the intelligentsia.[23]

Brzezinski’s answer to these profound and potentially revolutionary circumstances was to employ more social engineering, more social control, more integration and coordination among global powers; essentially, to strengthen power structures at the expense of all others. Brzezinski wrote that there was a “mounting national recognition that the future can and must be planned; that unless there is a modicum of deliberate choice, change will result in chaos.”[24] He elaborated:

Technological developments make it certain that modern society will require more and more planning. Deliberate management of the American future will become widespread, with the planner eventually displacing the lawyer as the key social legislator and manipulator… How to combine social planning with personal freedom is already emerging as the key dilemma of technetronic America, replacing the industrial age’s preoccupation with balancing social needs against requirements of free enterprise.[25]

In the same line of arguing in favour of more coordination, planning, and “technical” expertise, Brzezinski also posited an image of where this could eventually lead:

Another threat, less overt but no less basic, confronts liberal democracy. More directly linked to the impact of technology, it involves the gradual appearance of a more controlled and directed society. Such a society would be dominated by an elite whose claim to political power would rest on allegedly superior scientific know-how. Unhindered by the restraints of traditional liberal values, this elite would not hesitate to achieve its political ends by using the latest modern techniques for influencing public behavior and keeping society under close surveillance and control…  Persisting social crisis, the emergence of a charismatic personality, and the exploitation of mass media to obtain public confidence would be the steppingstones in the piecemeal transformation of the United States into a highly controlled society.[26]

Thus, we come to understand the ideologies, intent, and actions of two divergent social actors: the technocratic and policy-oriented intellectual and the dissident action-oriented intellectual. One supports power, one supports people. Our educational system is still to a significant degree composed of and designed to produce (like industrial factories for intellectual products) those intellectuals who support power, who engage in social engineering with the purpose of social control. Dissident intellectuals, while they exist, remain confined. They engage in research and write in academic journals which reach only other dissident intellectuals. This is the case not only in the West, but across a great deal of the world. There are, of course, exceptions, but they are few and far between. The knowledge and ideas and dissident intellectuals must be designed not for the purpose of internal discussion and debate among other dissidents within the institutions of academia, but to reach the masses, to empower the people, and to join – actively and actually – with the people as they mobilize for change. In order to do this, new forums, conferences, media, and other sources and organizations should attract the “value-oriented intellectuals” away from Ivory towers of intellectual isolation and into the people-oriented pathways of political action. The language must be made less academic and more accessible, the activities must be more directly engaged with people than distant and distracted.

The rigors of academic life make this a great challenge, not only for students but for professors as well. Professors are expected to publish consistently in journals and other publications, and so when they are not teaching or instructing, they are researching and writing, independently and isolated. There is very little time or opportunity for direct engagement, or for writing for other publications and avenues which could allow their research to reach a wider audience. This keeps intellectuals disciplined and distracted, and ultimately, gives little relevance to their research in terms of actually affecting any meaningful changes in society. However, here we come to understanding the inherent dichotomy of a crisis, in this case, the “Crisis of Education.” As the crisis of education leads to increased costs, increased debts, decreased enrollment, decreased opportunities, increased social unrest, increased student resistance, and ultimately, a decrease in the amount of teachers and professors (this is already taking place), there also opens an avenue through which much of the disciplinary mechanisms which held dissident intellectuals back will be eroded. With nothing left to lose (in terms of job security, financial stability, social prestige and opportunity), dissident intellectuals will be far more inclined toward participation in activism and social movements. Avenues for their participation should be opened up and extended as this crisis continues and deepens.

A simply example of such an opportunity to attract dissident intellectuals would be a type of international conference, media, and educational institute. It could begin with a conference, drawing dissidents from around the world – from Egypt, Tunisia, Greece, Turkey, Israel, Spain, the U.K., Canada, Australia, United States, Iceland, Ireland, Chile, Taiwan, etc. – to hold a discussion and debate on the origins, evolution, development and potential for the growing social and activist movements, whether in the Arab Spring, Occupy Wall Street, anti-austerity protests, student strikes, and others. The conference could be televised for free online, so people all over the world could view and engage. A major aim and result of the conference could be to establish an educational institution, which brings together such intellectuals from around the world with more consistency, which organizes a network of globally connected but locally-oriented decentralized schools, designed specifically for a broad, multi-disciplinary and globally-relevant education for social change. They could hold classes in which students and teachers engage as equals, bringing in local activists, alternative media, even filming the actual classes and discussions to post online, even provide a live feed. The aim would be to provide education for the purpose of empowering people to activism and social change. They could establish their own media outlets, providing research and discussion of activities by students and professors, and become engaged in actively planning and helping organize social movements, protests, and other activities.

The point would be to provide a forum where education has an empowering social purpose, where it integrates itself with other elements of society and does not remain isolated and insulated. For example, if one such discussion were to take place in a local decentralized school on the topic of food sustainability, agriculture, GMOs, and the politics of food, the result could be a decision to establish a network of organic farmers who would be willing to produce cheap food for poor areas, establish a space where there could be a cheap organic food market, or cheap (or free) meals made with the food, but dispensing it to poor people in poor areas of major cities, who would otherwise not have the means of good food for decent prices. It’s a very simple program, but the effects can be profound. Not only could it begin to integrate farmers and agriculturalists with such an emerging movement, but it could integrate the poor more closely with such a movement. The poor are, after all, the largest constituency in the world, and the one in the most need of help and empowerment. For the poor, the ideological and power struggles between the middle and upper classes are largely irrelevant, because neither benefit nor empower them. If there is to be a true and genuine revolutionary change in global society, acting without the ideas and support of the poor is a sure way to guarantee failure for genuine change. To get the support of the poor, the poor must be supported; they must be given a stake in the future, empowered to act and participate in change, and the starting point for this is to address the immediate necessities of poor people everywhere: food, clothing, shelter.

The difference between how ‘social control’-oriented institutions (such as foundations and NGOs) address poverty and how revolutionary and radical organizations would address poverty, is the intent and methods in dealing with these immediate concerns. NGOs and foundations seek to establish methods of providing food, clothing, shelter and general necessities so much as to address the symptoms of poverty, not the causes, and thus, to ultimately sustain the system that creates poverty by alleviating the worst conditions just enough to prevent rebellion or resistance. Revolutionary or radical organizations would seek to address the immediate concerns of the poor in order so that they may be empowered and able to begin finding ways to support themselves, to learn from them, and to provide access to forms of knowledge which have been denied to them. Thus, any programs of directly helping the poor would have to be accompanied with opportunities for education, knowledge, and outlets for action. The point is not to simply feed a poor individual, but to disseminate knowledge about why they are poor, how society creates and sustains the poor, the sources and solutions to poverty. Thus, it does not simply alleviate the symptoms, but empowers the individuals. Further, any radical movement must in turn be educated by the poor, for through their very existence, they are better able to understand the nature of the system that exists, because they have always been subjected to its most ugly and oppressive apparatus. While it may be easy for middle class intellectuals and students to promote a revolutionary cause based upon an ideology of how the state can and should function, poor people are able to give a better idea of how the state does function, has functioned, and thus, raise critical questions about the ideas, objectives, and actions of middle class and other radicals. The point would not be to be modern missionaries, providing food with “the Bible,” but to help – not out of pity but out of empathy and necessity – to empower, and, ultimately, to learn from and work with the poor. If any radical or revolutionary movement emerges which does not include a significant number of leaders from the poor population, and without significant support from the poor population, it is inherently anti-democratic and unworthy of pursuit.

This is, of course, just one example. The objective then, would be to find a way to bring dissident intellectuals out of the rigid confines of academia, and into the real world: to embolden, empower, and engage with the people, to participate in activism and social mobilization, and to work with a wide variety of other social groups and sectors in order to collectively participate in the construction of a new and far better world. It is time that this must be the acknowledged purpose of intellectuals, not the exception.

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada, writing on a number of social, political, economic, and historical issues. He is also Project Manager of The People’s Book Project. He also hosts a weekly podcast show, “Empire, Power, and People,” on BoilingFrogsPost.com.

Notes

[1]            Frank Webster and Kevin Robins, “Plan and Control: Towards a Cultural History of the Information Society,” Theory and Society (Vol. 18, 1989), pages 341-342.

[2]            Sidney Kaplan, “Social Engineers as Saviors: Effects of World War I on Some American Liberals,” Journal of the History of Ideas (Vol. 17, No. 3, June 1956), pages 366-367.

[3]            Sue Curry Jansen, “Phantom Conflict: Lippmann, Dewey, and the Fate of the Public in Modern Society,” Communication and Critical/Cultural Studies (Vol. 6, No. 3, 2009), page 225.

[4]            Walter Lippmann, et. al., The Essential Lippmann: A Political Philosophy for Liberal Democracy (Harvard University Press, 1982), page 91.

[5]            Ibid, page 92.

[6]            McGeorge Bundy, “The End of Either/Or,” Foreign Affairs (Vol. 45, No. 2, January 1967), page 189.

[7]            Ibid, pages 189-191.

[8]            Michel J. Crozier, Samuel P. Huntington and Joji Watanuki, The Crisis of Democracy, (Report on the Governability of Democracies to the Trilateral Commission, New York University Press, 1975), pages 6-7.

[9]            Ibid, page 31-32.

[10]            Ronald Aronson, “Sarte and the Radical Intellectuals Role,” Science & Society (Vol. 39, No. 4, Winter 1975/1976), pages 436, 447.

[11]            Ibid, pages 447-448.

[12]            Ibid, page 448-449.

[13]            Noam Chomsky, “A Special Supplement: The Responsibility of Intellectuals,” The New York Review of Books, 23 February 1967:

http://www.nybooks.com/articles/archives/1967/feb/23/a-special-supplement-the-responsibility-of-intelle/

[14]            Ibid.

[15]            Noam Chomsky, “Great Soul of Power,” Information Clearing House, 26 July 2006:

http://www.informationclearinghouse.info/article14221.htm

[16]            Joseph Blenkinsopp, Sage, Priest, Prophet: Religious and Intellectual Leadership in Ancient Israel (Westminster John Knox Press, 1995), page 2.

[17]            Ibid, page 144.

[18]            Ibid, pages 153-154.

[19]            Ibid, page 154.

[20]            Bronwyn Davies, et. al., “The Rise and Fall of the Neo-liberal University,” European Journal of Education (Vol. 41, No. 2, 2006), page 311.

[21]            Zbigniew Brzezinski, Between Two Ages: America’s Role in the Technetronic Era (Greenwood Press, Westport: 1970), page 265.

[22]            Ibid, page 269.

[23]            Ibid, page 278.

[24]            Ibid, page 256.

[25]            Ibid, page 260.

[26]            Ibid, pages 252-253.

Class War and the College Crisis: The “Crisis of Democracy” and the Attack on Education

Class War and the College Crisis: The “Crisis of Democracy” and the Attack on Education

The following is the first part of a series of articles, “Class War and the College Crisis.”

By: Andrew Gavin Marshall

Today, we are witnessing an emerging massive global revolt, led primarily be the educated and unemployed youth of the world, against the institutionalized and established powers which seek to deprive them of a future worth living. In Chile over the past year, a massive student movement and strike has become a powerful force in the country against the increasingly privatized educational system (serving as a model for the rest of the world) with the support of the vast majority of the population; in Quebec, Canada, a student strike has brought hundreds of thousands of youth into the streets to protest against the doubling of tuition fees; students and others are on strike in Spain against austerity measures; protests led by or with heavy participation of the youth in the U.K., Greece, Portugal, France, and in the United States (such as with the Occupy Movement) are developing and growing, struggling against austerity measures, overt corruption by the capitalist class, and government collusion with bankers and corporations. Students and youth led the uprisings in Tunisia and Egypt last year which led to the overthrow of the dictators which had ruled those nations for decades.

All around the world, increasingly, the youth are taking to the streets, protesting, agitating, and striking against the abuses of power, the failures of government, the excesses of greed, plundering and poverty. The educated youth in particular are playing an active role, a role which will be increasing dramatically over the coming year and years. The educated youth are graduating into a jobless market with immense debt and few opportunities. Now, just as several decades ago, the youth are turning back to activism. What happened in the intervening period to derail the activism that had been so widespread in the 1960s? How did our educational system get to its present state? What do these implications have for the present and future?

The “Crisis of Democracy”

In the period between the 1950s and the 1970s, the Western world, and especially the United States, experienced a massive wave of resistance, rebellion, protest, activism and direct action by entire sectors of the general population which had for decades, if not centuries, been largely oppressed and ignored by the institutional power structure of society. The Civil Rights movement in the United States, the rise of the New Left – radical and activist – in both Europe and North America, as elsewhere, anti-war activism, largely spurred against the Vietnam War, Liberation Theology in Latin America (and the Philippines), the environmental movement, feminist movement, gay rights movements, and all sorts of other activist and mobilized movements of youth and large sectors of society were organizing and actively agitating for change, reform, or even revolution. The more power resisted their demands, the more the movements became radicalized. The slower power acted, the faster people reacted. The effect, essentially, was that these movements sought to, and in many cases did, empower vast populations who had otherwise been oppressed and ignored, and they generally awakened the mass of society to such injustices as racism, war, and repression.

For the general population, these movements were an enlightening, civilizing, and hopeful phase in our modern history. For elites, they were terrifying. Thus, in the early 1970s there was a discussion taking place among the intellectual elite, most especially in the United States, on what became known as the “Crisis of Democracy.” In 1973, the Trilateral Commission was formed by banker and global oligarch David Rockefeller, and intellectual elitist Zbigniew Brzezinski. The Trilateral Commission brings together elites from North America, Western Europe, and Japan (now including several states in East Asia), from the realms of politics, finance, economics, corporations, international organizations, NGOs, academia, military, intelligence, media, and foreign policy circles. It acts as a major international think tank, designed to coordinate and establish consensus among the dominant imperial powers of the world.

In 1975, the Trilateral Commission issued a major report entitled, “The Crisis of Democracy,” in which the authors lamented against the “democratic surge” of the 1960s and the “overload” this imposed upon the institutions of authority. Samuel Huntington, a political scientist and one of the principal authors of the report, wrote that the 1960s saw a surge in democracy in America, with an upswing in citizen participation, often “in the form of marches, demonstrations, protest movements, and ‘cause’ organizations.” Further, “the 1960s also saw a reassertion of the primacy of equality as a goal in social, economic, and political life.” Of course, for Huntington and the Trilateral Commission, which was founded by Huntington’s friend, Zbigniew Brzezinski, and banker David Rockefeller, the idea of “equality as a goal in social, economic, and political life” is a terrible and frightening prospect. Huntington analyzed how as part of this “democratic surge,” statistics showed that throughout the 1960s and into the early 1970s, there was a dramatic increase in the percentage of people who felt the United States was spending too much on defense (from 18% in 1960 to 52% in 1969, largely due to the Vietnam War).[1]

Huntington wrote that the “essence of the democratic surge of the 1960s was a general challenge to existing systems of authority, public and private,” and further: “People no longer felt the same compulsion to obey those whom they had previously considered superior to themselves in age, rank, status, expertise, character, or talents.” He explained that in the 1960s, “hierarchy, expertise, and wealth” had come “under heavy attack.” The use of language here is important, in framing power and wealth as “under attack” which implied that those who were “attacking” were the aggressors, as opposed to the fact that these populations (such as black Americans) had in fact been under attack from power and wealth for centuries, and were just then beginning to fight back. Thus, the self defense of people against power and wealth is referred to as an “attack.” Huntington stated that the three key issues which were central to the increased political participation in the 1960s were:

social issues, such as use of drugs, civil liberties, and the role of women; racial issues, involving integration, busing, government aid to minority groups, and urban riots; military issues, involving primarily, of course, the war in Vietnam but also the draft, military spending, military aid programs, and the role of the military-industrial complex more generally.[2]

Huntington presented these issues, essentially, as the “crisis of democracy,” in that they increased distrust with the government and authority, that they led to social and ideological polarization, and ultimately, to a “decline in the authority, status, influence, and effectiveness of the presidency.” Huntington concluded that many problems of governance in the United States stem from an “excess of democracy,” and that, “the effective operation of a democratic political system usually requires some measure of apathy and noninvolvement on the part of some individuals and groups.” Huntington explained that society has always had “marginal groups” which do not participate in politics, and while acknowledging that the existence of “marginality on the part of some groups is inherently undemocratic,” it has also “enabled democracy to function effectively.” Huntington identifies “the blacks” as one such group that had become politically active, posing a “danger of overloading the political system with demands.” Of course, this implies directly an elitist version of “democracy” in which the state retains the democratic aesthetic (voting, separation of powers, rule of law) but remains exclusively in the hands of the wealthy power elite. Huntington, in his conclusion, stated that the vulnerability of democracy – the ‘crisis of democracy’ – comes “from the internal dynamics of democracy itself in a highly educated, mobilized, and participant society,” and that what is needed is “a more balanced existence” in which there are “desirable limits to the indefinite extension of political democracy.”[3] In other words, what is needed is less democracy and more authority.

The Trilateral Commission later explained its views of the “threat” to democracy and thus, the way the system ‘should’ function:

In most of the Trilateral countries [Western Europe, North America, Japan] in the past decade there has been a decline in the confidence and trust which the people have in government… Authority has been challenged not only in government, but in trade unions, business enterprises, schools and universities, professional associations, churches, and civic groups. In the past, those institutions which have played the major role in the indoctrination of the young in their rights and obligations as members of society have been the family, the church, the school, and the army. The effectiveness of all these institutions as a means of socialization has declined severely.(emphasis added)[4]

The “excess of democracy” which this entailed created a supposed “surge of demands” upon the government, just at a time when the government’s authority was being undermined. The Trilateral Commission further sent rampant shivers through the intellectual elite community by discussing the perceived threat of “value-oriented intellectuals” who dare to “assert their disgust with the corruption, materialism, and inefficiency of democracy and with the subservience of democratic government to ‘monopoly capitalism’.” For the members and constituents (elites) of the Trilateral Commission, they did not hold back on the assessment of such a threat, stating that, “this development constitutes a challenge to democratic government which is, potentially at least, as serious as those posed in the past by the aristocratic cliques, fascist movements, and communist parties.”[5] This is a very typical elitist use of rhetoric in which when identifying any perceived threat to elite interests, they are portrayed in near-apocalyptic terms. The implication, therefore, is that intellectuals who challenge authority are presented as much of a threat to democracy as Hitler and fascism were.

The Trilateral Commission report explained – through economic reasoning – how increased democracy is simply unsustainable. The “democratic surge” gave disadvantaged groups new rights and made them politically active (such as blacks), and this resulted in increased demands upon the very system whose legitimacy had been weakened. A terrible scenario for elites! The report explained that as voting decreased throughout the 1960s and into the 1970s, active political participation on campuses increased, minority groups were demanding rights (how dare they!), and not only were they demanding basic human rights, but also “opportunities, positions, rewards, and privileges, which they had not considered themselves entitled to before.” That is, unlike the rich, who have considered themselves entitled to everything, always, and forever. Thus, government spending on social welfare and education increased, explained the report: “By the early 1970s Americans were progressively demanding and receiving more benefits from their government and yet having less confidence in their government than they had a decade before.” Most people would refer to that as the achievement of democracy, but for the Trilateral “intellectuals” it was an “excess of democracy,” and indeed, a threat.[6]

Samuel Huntington, naturally, assumed that the decline of confidence in the government was irrational, and had nothing to do with the Vietnam War, police and state repression of protest movements, the Watergate Scandal or other obvious crimes. No, for Huntington, the decline in confidence is tied magically to the “increased expectations” of the population, or, as Jay Peterzell explained in his critique of the report, “the root cause of public disillusionment is consistently traced to unrealistic expectations encouraged by government spending.” Huntington justified this absurd myth on his skewed analysis of the “defense shift” and “welfare shift.” The “defense shift,” which took place in the 1950s, described a period in which 36% of the increase in government spending went to defense (i.e., the military-industrial complex), whereas welfare declined as a proportion of the budget. Then came the “welfare shift” of the 1960s, in which between 1960 and 1971, only a paltry 15% of the increase in spending went to the military-industrial complex, while 84% of the increase went to domestic programs. Thus, for Huntington, the “welfare shift” basically destroyed America and ruined democracy.[7]

In reality, however, Jay Peterzell broke down the numbers to explain the “shifts” in a larger and more rational context. While it was true that the percentages increased and decreased as Huntington displayed them, they were, after all, a percentage of the “increase” in spending, not the overall percentage of spending itself. So, when one looks at the overall government spending in 1950, 1960, and 1972, the percentage on “defense” was 44, to 53, to 37. In those same years, spending on welfare amounted to 4%, 3% and 6%. Thus, between 1960 and 1972, the amount of spending on defense decreased from 53-37% of the total spending of government. In the same years, spending on welfare increased from 3-6% of the total government expenditure. When viewing it as a percentage of the overall, it can hardly be legitimate to claim that the meager increase to 6% of government expenditures for welfare was anywhere near as “threatening” to democracy as was the 37% spent on the military-industrial complex.[8]

So naturally, as a result of such terrifying statistics, the intellectual elite and their financial overlords had to impose more authority and less democracy. It was not simply the Trilateral Commission advocating for such “restraints” upon democracy, but this was a major discussion in elite academic circles in the 1970s. In Britain, this discussion emerged on the “governability thesis” – or the “overload” thesis – of democracy. Samuel Brittan’s “The Economic Contradictions of Democracy” in 1975, explained that, “The temptation to encourage fake expectations among the electorate becomes overwhelming to politicians. The opposition parties are bound to promise to do better and the government party must join in the auction.” Essentially, it was a repetition of the Trilateral thesis that too many promises create too many demands, which then create too much stress for the system, and it would inevitably collapse. Anthony King echoed this in his piece, “Overload: Problems of Governing in the 1970s,” and King explained that governing was becoming “harder” because “at one and the same time, the range of problems that government is expected to deal with has vastly increased and its capacity to deal with problems, even many of the ones it had before, has decreased.” The Italian political scientist Giovanni Sartori asked the question, “Will Democracy Kill Democracy?”

We are pursuing targets which are out of proportion, unduly isolated and pursued blindly, and that are, therefore, in the process of creating… a wholly unmanageable and ominous overload… We are beginning to realize in the prosperous democracies that we are living above our means. But we are equally and more grievously living above and beyond our intelligence, above the understanding of what we are doing.[9]

King explained that, “Political scientists have traditionally been concerned to improve the performance of government.” An obvious mistake, concluded King, who suggested that, “Perhaps over the next few years they should be concerned more with how the number of tasks that government has come to be expected to perform can be reduced.” The “remedy” for all this “overload” of democratic societies was to, first, bring “an end to the politics of ‘promising’,” and second, “attempt to reduce the expectations of voters and consumers” on the political process.[10]

The “threat” of educated youth was especially pronounced. In 1978, the Management Development Institute (a major business school in India) released a report in which it stated:

perhaps the most pernicious trend over the next decade is the growing gap between an increasingly well educated labor force and the number of job openings which can utilize its skills and qualifications… The potential for frustration, alienation and disruption resulting from the disparity between educational attainment and the appropriate job content cannot be overemphasized.[11]

In these commentaries, we are dealing with two diametrically opposed definitions of democracy: popular and elitist. Popular democracy is government of, by, and for the people; elitist democracy is government of, by, and for the rich (but with the outward aesthetic of democracies), channeling popular participation into voting instead of decision-making or active participation. Popular democracy implies the people participating directly in the decisions and functions and maintenance of the ‘nation’ (though not necessarily the State); whereas elitist democracy implies passive participation of the population so much as to allow them to feel as if they play an important role in the direction of society, while the elites control all the important levers and institutions of power which direct and benefit from the actions of the state. These differing definitions are important because when reading reports written and issued by elite interests (such as the Trilateral Commission report), it changes the substance and meaning of the report itself. For example, take the case of Samuel Huntington lamenting at the threat posed to democracy by popular participation: from the logic of popular democracy, this is an absurd statement that doesn’t make sense; from the logic of elitist democracy, the statement is accurate and profoundly important. Elites understand this differentiation, so too must the public.

The Powell Memo: Protecting the Plutocracy

While elites were lamenting over the surge in democracy, particularly in the 1960s, they were not simply complaining about an “excess of democracy” but were actively planning on reducing it. Four years prior to the Trilateral Commission report, in 1971, the infamous and secret ‘Powell Memo’ was issued, written by a corporate lawyer and tobacco company board member, Lewis F. Powell, Jr. (whom President Nixon nominated to the Supreme Court two months later), which was addressed to the Chairman of the Education Committee of the U.S. Chamber of Commerce, representing American business interests.

Powell stipulated that “the American economic system is under broad attack,” and that, “the assault on the enterprise system is broadly based and consistently pursued… gaining momentum and converts.” While the ‘sources’ of the ‘attack’ were identified as broad, they included the usual crowd of critics, Communists, the New Left, and “other revolutionaries who would destroy the entire system, both political and economic.” Adding to this was that these “extremists” were increasingly “more welcomed and encouraged by other elements of society, than ever before in our history.” The real “threat,” however, was the “voices joining the chorus of criticism [which] come from perfectly respectable elements of society: from the college campus, the pulpit, the media, the intellectual and literary journals, the arts and sciences, and from politicians.” While acknowledging that in these very sectors, those who speak out against the ‘system’ are still a minority, Powell noted, “these are often the most articulate, the most vocal, the most prolific in their writing and speaking.”[12]

Powell discussed the “paradox” of how the business leaders appear to be participating – or simply tolerating – the attacks on the “free enterprise system,” whether by providing a voice through the media which they own, or through universities, despite the fact that “[t]he boards of trustees of our universities overwhelmingly are composed of men and women who are leaders in the system.” Powell lamented the conclusions of reports indicating that colleges were graduating students who “despise the American political and economic system,” and thus, who would be inclined to move into power and create change, or outright challenge the system head on. This marked an “intellectual warfare” being waged against the system, according to Powell, who then quoted economist Milton Friedman of the University of Chicago (and the ‘father’ of neoliberalism), who stated:

It [is] crystal clear that the foundations of our free society are under wide-ranging and powerful attack – not by Communists or any other conspiracy but by misguided individuals parroting one another and unwittingly serving ends they would never intentionally promote.[13]

Powell even specifically identified Ralph Nader as a “threat” to American business. Powell further deplored the changes and “attack” being made through the courts and legal system, which began targeting corporate tax breaks and loop holes, with the media supporting such initiatives since they help “the poor.” Powell of course referred to the notion of helping “the poor” at the expense of the rich, and the framing of the debate as such, as “political demagoguery or economic illiteracy,” and that the identification of class politics – the rich versus the poor – “is the cheapest and most dangerous kind of politics.” The response from the business world to this “broad attack,” Powell sadly reported, was “appeasement, ineptitude and ignoring the problem.” Powell did, however, explain in sympathy to the ‘ineptitude’ of the corporate and financial elites that, “it must be recognized that businessmen have not been trained or equipped to conduct guerilla warfare with those who propagandize against the system.”[14]

While the “tradition role” of business leaders has been to make profits, “create jobs,” to “improve the standard of living,” and of course, “generally to be good citizens,” they have unfortunately shown “little skill in effective intellectual and philosophical debate.” Thus, stated Powell, businessmen must first “recognize that the ultimate issue may be survival – survival of what we call the free enterprise system, and all that this means for the strength and prosperity of America and the freedom of our people.” As such, “top [corporate] management must be equally concerned with protecting and preserving the system itself,” instead of just focused on profits. Corporations, Powell acknowledged, were long involved in “public relations” and “governmental affairs” (read: propaganda and public policy), however, the ‘counter-attack’ must be more wide-ranging:

But independent and uncoordinated activity by individual corporations, as important as this is, will not be sufficient. Strength lies in organization, in careful long-range planning and implementation, in consistency of action over an indefinite period of years, in the scale of financing available only through joint effort, and in the political power available only through united action and national organizations.[15]

While the ‘assault’ against the system developed over several decades, Powell elaborated, “there is reason to believe that the campus [university/education] is the single most dynamic source,” as “social science faculties usually include members who are unsympathetic to the enterprise system.” These academics, explained Powell, “need not be in the majority,” as they “are often personally attractive and magnetic; they are stimulating teachers, and their controversy attracts student following; they are prolific writers and lecturers; they author many of the textbooks, and they exert enormous influence – far out of proportion to their numbers – on their colleagues and in the academic world.” Such a situation is, naturally, horrific and deplorable! Imagine that, having magnetic, stimulating and prolific teachers, what horror and despair for the world that would surely bring!

In purporting that political scientists, economists, sociologists and many historians “tend to be liberally oriented,” Powell suggested that “the need for liberal thought is essential to a balanced viewpoint,” but that the ‘balance’ does not exist, with “few [faculty] members being conservatives or [of] moderate persuasion… and being less articulate and aggressive than their crusading colleagues.” Terrified of the prospects of these potentially revolutionary youths entering into positions of power, Powell stated that when they do, “for the most part they quickly discover the fallacies of what they have been taught,” which is, in other words, to say that they quickly become socialized to the structures, hierarchies and institutions of power which demand conformity and subservience to elite interests. However, there were still many who could emerge in “positions of influence where they mold public opinion and often shape governmental action.” Thus, recommended Powell, the Chamber of Commerce should make the “priority task of business” and its related organizations “to address the campus origin of this hostility.” As academic freedom was held as sacrosanct in American society, “It would be fatal to attack this as a principle,” which of course implies that it is to be attacked indirectly. Instead, it would be more effective to use the rhetoric of “academic freedom” itself against the principle of academic freedom, using terms like “openness,” “fairness,” and “balance” as points of critique which would yield “a great opportunity for constructive action.”[16]

Thus, an organization such as the Chamber of Commerce should, recommended Powell, “consider establishing a staff of highly qualified scholars in the social sciences who do believe in the system… [including] several of national reputation whose authorship would be widely respected – even when disagreed with.” The Chamber should also create “a staff of speakers of the highest competency” which “might include the scholars,” and establish a ‘Speaker’s Bureau’ which would “include the ablest and most effective advocates form the top echelons of American business.” This staff of scholars, which Powell emphasized, should be referred to as “independent scholars,” should then engage in a continuing program of evaluating “social science textbooks, especially in economics, political science and sociology.” The objective of this would “be oriented toward restoring the balance essential to genuine academic freedom,” meaning, of course, implanting ideological indoctrination and propaganda from the business world, which Powell described as the “assurance of fair and factual treatment of our system of government and our enterprise system, its accomplishments, its basic relationship to individual rights and freedoms, and comparisons with the systems of socialism, fascism and communism.” Powell lamented that the “civil rights movement insist[ed] on re-writing many of the textbooks in our universities and schools,” and “labor unions likewise insist[ed] that textbooks be fair to the viewpoints of organized labor.” Thus, Powell contended, in the business world attempting to re-write textbooks and education, this process “should be regarded as an aid to genuine academic freedom and not as an intrusion upon it.”[17]

Further, Powell suggested that the business community promote speakers on campuses and lecture tours “who appeared in support of the American system of government and business.” While explaining that student groups and faculty would not likely be willing to give the podium over to the Chamber of Commerce or business leaders to espouse their ideology, the Chamber must “aggressively insist” on being heard, demanding “equal time,” as this would be an effective strategy because “university administrators and the great majority of student groups and committees would not welcome being put in the position publicly of refusing a forum to diverse views.” The two main ingredients for this program, Powell explained, was first, “to have attractive, articulate and well-informed speakers,” and second, “to exert whatever degree of pressure – publicly and privately – may be necessary to assure opportunities to speak.” The objective, Powell wrote, “always must be to inform and enlighten, and not merely to propagandize.”[18]

The biggest problem on campuses, however, was the need to “balance” faculties, meaning simply that the business world must work to implant spokespeople and apologists for the economic and financial elite into the faculties. The need to “correct” this imbalance, wrote Powell, “is indeed a long-range and difficult project,” which “should be undertaken as a part of an overall program,” including the application of pressure “for faculty balance upon university administrators and boards of trustees.” Powell acknowledged that such an effort is a delicate and potentially dangerous process, requiring “careful thought,” as “improper pressure would be counterproductive.” Focusing on the rhetoric of balance, fairness, and ‘truth’ would create a method “difficult to resist, if properly presented to the board of trustees.” Of course, the whole counter-attack of the business world should not simply be addressed to university education, but, as Powell suggested, also “tailored to the high schools.”[19]

As Powell had addressed the “attack” from – and proposed the “counterattack” on – the educational system by the corporate and financial elite, he then suggested that while this was a more long-term strategy, in the short term it would be necessary to address the public in the short-term. To do so:

The first essential is to establish the staffs of eminent scholars, writers and speakers, who will do the thinking, the analysis, the writing and the speaking. It will also be essential to have staff personnel who are thoroughly familiar with the media, and how most effectively to communicate with the public.[20]

The means of communicating with the public include using television. Powell recommended monitoring television in the same way that they monitor textbooks, with an aim to keep the media under “constant surveillance” for criticism of the enterprise system, which, Powell assumed, was derived from one of two sources: “hostility or economic ignorance.” It is simply assumed that the critiques of business and the ‘system’ are unjustified, derived from a misplaced hatred of society or from ignorance. This point of view is consistently regurgitated throughout the entire memo. To more properly “correct” the media, Powell suggested that surveillance would then prompt complaints to both the media and the Federal Communications Commission, and just as in university speaking tours, “equal time [for business spokespeople] should be demanded,” especially on “forum-type programs” like Meet the Press or the Today Show. Of course, the radio and print press were also to be monitored and “corrected.”[21]

The “faculty of scholars” established by the Chamber of Commerce or other business groups must publish, especially scholarly articles, as such tactics have been effective in the “attack” on the enterprise system. Thus, these “independent scholars” must publish in popular magazines (such as Life, Reader’s Digest, etc.), intellectual magazines (such as the Atlantic, Harper’s, etc.) and the professional journals. Furthermore, they must publish books, paperbacks and pamphlets promoting “our side” to “educate the public.” Paid advertising must also increasingly be used to “support the system.”[22]

Powell then turned his attention to the political arena, beginning with the base assumption that the idea of big business controlling Western governments is mere “Marxist doctrine” and “leftist propaganda,” which, Powell sadly reports, “has a wide public following among Americans.” He immediately thereafter asserted that, “every business executive knows… few elements of American society today have as little influence in government as the American businessman, the corporation, or even the millions of corporate stockholders.” Powell amazingly claimed that in terms of government influence, the poor unfortunate American businessman and corporate executive is “the forgotten man.”[23]

Forget the poor, black, and disenfranchised segments of society; forget the disabled, the labeled, and the imprisoned; forget those on welfare, food stamps, dependent upon social services or local charity; forget the entire population of the United States, who can only incite government recognition and support after years of struggle, constant protests, police repression, assault, curtailment of basic human rights and dignity; those struggles which seek only the attainment of a genuine status of human being, to be treated equal and fair… no, forget those people! The true “forgotten” and “oppressed” are the executives at Union Carbide, Exxon, General Electric, GM, Ford, DuPont, Dow, Chase Manhattan, Bank of America, and Monsanto. They, truly, are the disenfranchised… At least, according to Lewis Powell.

For Powell, education and public propaganda campaigns are necessary, but the poor disenfranchised American corporate executive must realize that “political power is necessary,” and that such power must be “used aggressively and with determination – without embarrassment and without the reluctance which has been so characteristic of American business.” Further, it is not merely in the legislative and executive branches of government where business leaders must seize power “aggressively,” but also in the judicial branch – the courts – which “may be the most important instrument for social, economic and political change.” Charging that both “liberals” and the “far left” have been “exploiters of the judicial system” – such as the American Civil Liberties Union, labor unions and civil rights organizations – business groups such as the Chamber of Commerce would need to establish “a highly competent staff of lawyers” to exploit the judiciary for their own benefit.[24] Powell went on to play a very important role in this process as he was appointed to the Supreme Court almost immediately after having authored this memo, where he made many important decisions regarding “corporate rights.”

In advocating aggression in pushing their own interests, Powell encouraged the business community “to attack the [Ralph] Naders, the [Herbert] Marcuses and other who openly seek destruction of the system,” as well as “to penalize politically those who oppose it.” The “threat to the enterprise system” must not be merely presented as an economic issue, but should be portrayed as “a threat to individual freedom,” which Powell described as a “great truth” which “must be re-affirmed if this program is to be meaningful.” Thus, the “only alternatives to free enterprise” are to be presented as “varying degrees of bureaucratic regulation of individual freedom – ranging from that under moderate socialism to the iron heel of the leftist or rightist dictatorship.” The aim was to tie the average American’s own individual conception of their personal freedom and rights to that of corporations and business leaders. Thus, contended Powell, “the contraction and denial of economic freedom is followed inevitably by governmental restrictions on other cherished rights.” This is the precise message, Powell explained, “above all others, that must be carried home to the American people.”[25] So, by this logic, if today Monsanto and Dow are regulated, tomorrow, your Mom and Dad will be in a dictatorship.

The New Right: Neoliberalism and Education

The Powell Memo is largely credited with being a type of ‘Constitution’ or ‘founding document’ for the emergence of the right-wing think tanks in the 1970s and 1980s, as per its recommendations for establishing “a staff of highly qualified scholars in the social sciences who do believe in the system.” In 1973, a mere two years after the memo was written, the Heritage Foundation was founded as an “aggressive and openly ideological expert organization,” which became highly influential in the Reagan administration.[26]

The Heritage Foundation’s website explains that the think tank’s mission “is to formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense.” Upon its founding in 1973, the Heritage Foundation began to “deliver compelling and persuasive research to Congress providing facts, data, and sound arguments on behalf of conservative principles.” In 1977, Ed Feulner became President of the foundation and established “a new senior management staff” and a ‘resource bank’ in order “to take on the liberal establishment and forge a national network of conservative policy groups and experts,” ultimately totaling more than 2,200 “policy experts” and 475 “policy groups” in the U.S. and elsewhere. In 1980, Heritage published a “public policy blueprint” entitled, “Mandate for Leadership,” which became “the policy bible of the newly elected Reagan administration on everything from taxes and regulation to crime and national defense.” In 1987, Heritage published another policy plan, “Out of the Poverty Trap: A Conservative Strategy for Welfare Reform,” which, as their website boastfully claimed, “changed the entitlement mentality in America, moving thousands off the dole [welfare] and toward personal responsibility,” or, in other words, deeper poverty.[27]

The model of the Heritage Foundation led to the rapid proliferation of conservative think tanks, from 70 to over 300 in over 30 years, which “often work together to create multi-issue networks on the local, state, and federal level and use mainstream and alternative media to promote conservative agendas.” The ultimate objective, like with all think tanks and foundations, is “spreading ideology.”[28]

The Cato Institute is another conservative – or “libertarian” – think tank, as it describes itself. Founded in 1974 as the Charles Koch Foundation by Charles Koch (one of America’s richest billionaires and major financier of the Tea Party movement), as well as Ed Crane and Murray Rothbard. By 1977, it had changed its name to the Cato Institute, after “Cato’s Letters,” a series of essays by two British writers in the 18th century under the pseudonym of Cato, who was a Roman Senator strongly opposed to democracy, and had fought against the slave uprising led by Spartacus. He was idolized in the Enlightenment period as a progenitor and protector of liberty (for the few), which was reflected in the ideology of the Founding Fathers of the United States, particularly Thomas Jefferson and James Madison, for which the Cato Institute credits as the reasoning for the re-naming. While Enlightenment thought and thinkers are idolized – most especially in the formation of the U.S. Constitution – as advocates of liberty, freedom and individual rights, it was the ‘right’ of ‘private property’ and those who owned property (which, at the time, included slave owners) as the ultimate sacrosanct form of “liberty.” Again, a distinctly elitist conception of democracy referred to as ‘Republicanism.’

These right-wing think tanks helped bring in the era of neo-liberalism, bringing together “scholars” who support the so-called “free market” system (itself, a mythical fallacy), and who deride and oppose all forms of social welfare and social support. The think tanks produced the research and work which supported the dominance of the banks and corporations over society, and the members of the think tanks had their voices heard through the media, in government, and in the universities. They facilitated the ideological shift in power and policy circles toward neoliberalism.

The Powell Memo and the general “crisis of democracy” set out a political, social, and economic circumstance in which neoliberalism emerged to manage the “excess of democracy.” Instead of a broader focus on neoliberalism and globalization in general, I will focus on their influences upon education in particular. The era of neoliberal globalization marked a rapid decline of the liberal welfare states that had emerged in the previous several decades, and as such, directly affected education.

As part of this process, knowledge was transformed into ‘capital’ – into ‘knowledge capitalism’ or a ‘knowledge economy.’ Reports from the World Bank and the Organization for Economic Cooperation and Development (OECD) in the 1990s transformed these ideas into a “policy template.” This was to establish “a new coalition between education and industry,” in which “education if reconfigured as a massively undervalued form of knowledge capital that will determine the future of work, the organization of knowledge institutions and the shape of society in the years to come.”[29]

Knowledge was thus defined as an “economic resource” which would give growth to the economy. As such, in the neoliberal era, where all aspects of economic productivity and growth are privatized (purportedly to increase their efficiency and productive capacity as only the “free market” can do), education – or the “knowledge economy” – itself, was destined to be privatized.[30]

In the revised neoliberal model of education, “economic productivity was seen to come not from government investment in education, but from transforming education into a product that could be bought and sold like anything else – and in a globalised market, Western education can be sold as a valuable commodity in developing countries.” Thus, within the university itself, “the meaning of ‘productivity’ was shifted away from a generalized social and economic good towards a notional dollar value for particular government-designated products and practices.” Davies et. al. elaborated:

Where these products are graduating students, or research published, government could be construed as funding academic work as usual. When the ‘products’ to be funded are research grant dollars, with mechanisms in place to encourage collaboration with industry, this can be seen as straightforward manipulation of academics to become self-funding and to service the interests of business and industry.[31]

The new ‘management’ of universities entailed decreased state funding while simultaneously increasing “heavy (and costly) demands on accounting for how that funding was used,” and thus, “trust in professional values and practices was no longer the basis of the relationship” between universities and government. It was argued that governments were no longer able to afford the costs of university education, and that the “efficiency” of the university system – defined as “doing more with less” – was to require a change in the leadership and management system internal to the university structure to “a form of managerialism modeled on that of the private sector.” The “primary aim” of this neoliberal program, suggests Davies:

was not simply to do more with less, since the surveillance and auditing systems are extraordinarily costly and ineffective, but to make universities more governable and to harness their energies in support of programmatic ambitions of neo-liberal government and big business. A shift towards economics as the sole measure of value served to erode the status and work of those academics who located value in social and moral domains. Conversely, the technocratic policy-oriented academics, who would serve the ends of global corporate capital, were encouraged and rewarded.[32]

As the 1960s saw a surge in democracy and popular participation, to a significant degree emanating from the universities, dissident intellectuals and students, the 1970s saw the articulation and actualization of the elite attack upon popular democracy and the educational system itself. From the U.S. Chamber of Commerce and the Trilateral Commission, both of which represent elite financial and corporate interests, the key problem was identified as active and popular participation of the public in the direction of society. This was the “crisis of democracy.” The solution for elites was simple: less democracy, more authority. In the educational realm, this meant more elite control over universities, less freedom and activism for intellectuals and students. Universities and the educational system more broadly was to become increasingly privatized, corporatized, and globalized. The age of activism was at an end, and universities were to be mere assembly plants for economically productive units which support the system, not challenge it. One of the key methods for ensuring this took place was through debt, which acts as a disciplinary mechanism in which students are shackled with the burden of debt bondage, and thus, their education itself must be geared toward a specific career and income expectation. Knowledge is sought for personal and economic benefit more than for the sake of knowledge itself. Graduating with extensive debt then implies a need to immediately enter the job market, if not already having entered the job market part time while studying. Debt thus disciplines the student toward a different purpose in their education: toward a job and financial benefits rather than toward knowledge and understanding. Activism then, is more of an impediment to, rather than a supporter of knowledge and education.

In the next part of this series, I will analyze the purpose and role of education and intellectuals in a historical context, differentiating between the ‘social good’ and ‘social control’ purposes of education, as well as between the policy-oriented (elite) and value-oriented (dissident) intellectuals. Through a critical look at the purpose of education and intellectuals, we can understand the present crisis in education and intellectual dissent, and thus, understand positive methods and directions for change.

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada, writing on a number of social, political, economic, and historical issues. He is also Project Manager of The People’s Book Project. He also hosts a weekly podcast show, “Empire, Power, and People,” on BoilingFrogsPost.com.

Notes

[1]            Michel J. Crozier, Samuel P. Huntington and Joji Watanuki, The Crisis of Democracy, (Report on the Governability of Democracies to the Trilateral Commission, New York University Press, 1975), pages 61-62, 71.

[2]            Ibid, pages 74-77.

[3]            Ibid, pages 93, 113-115.

[4]            Ibid, page 162.

[5]            Jay Peterzell, “The Trilateral Commission and the Carter Administration,” Economic and Political Weekly (Vol. 12, No. 51, 17 December 1977), page 2102.

[6]            Ibid.

[7]            Ibid.

[8]            Ibid.

[9]            Wayne Parsons, “Politics Without Promises: The Crisis of ‘Overload’ and Governability,” Parliamentary Affairs (Vol. 35, No. 4, 1982), pages 421-422.

[10]            Ibid.

[11]            Val Burris, “The Social and Political Consequences of Overeducation,” American Sociological Review (Vol. 48, No. 4, August 1983), pages 455-456.

[12]            Lewis F. Powell, Jr., “Confidential Memorandum: Attack of American Free Enterprise System,” Addressed to the U.S. Chamber of Commerce, 23 August 1971:

http://www.pbs.org/wnet/supremecourt/personality/sources_document13.html

[13-25]                        Ibid.

[26]            Julie E. Miller-Cribbs, et. al., “Thinking About Think Tanks: Strategies for Progressive Social Work,” Journal of Policy Practice (Vol. 9, No. 3-4, 2010), page 293.

[27]            The Heritage Foundation, “The Heritage Foundation’s 35th Anniversary: A History of Achievements,” About: http://www.heritage.org/about/our-history/35th-anniversary

[28]            Julie E. Miller-Cribbs, et. al., “Thinking About Think Tanks: Strategies for Progressive Social Work,” Journal of Policy Practice (Vol. 9, No. 3-4, 2010), pages 293-294.

[29]            Mark Olssen and Michael A. Peters, “Neoliberalism, Higher Education and the Knowledge Economy: From the Free Market to Knowledge Capitalism,” Journal of Education Policy (Vol. 20, No. 3, May 2005), page 331.

[30]            Ibid, pages 338-339.

[31]            Bronwyn Davies, et. al., “The Rise and Fall of the Neo-liberal University,” European Journal of Education (Vol. 41, No. 2, 2006), pages 311-312.

[32]            Ibid, page 312.