This week was a sharp reminder that the ancient ideal of democracy is just as threatened -- and to some, just as threatening -- as it's ever been. In government offices in Athens, G20 meeting rooms in Cannes, and "Super Committee" chambers in Washington, we learned that there are still places where the will of the people can be overruled by the whims of the powerful.
From the Parthenon to the Potomac, it was the same story: Elites still hold veto power over the democratic process, and they're not afraid to use it.
Democracy: 'Radical,' 'Irrational,' 'Dangerous'
Ironically, this week's ferment began in the country that's usually credited with creating democracy. In many ways the Greek economy couldn't be more different from our own. The government's fiscal problems there are due in large part to widespread corruption and massive tax evasion -- not tax breaks, tax evasion -- which are very different from our own problems. The government's finances dramatically worse than our own -- almost like night and day -- and a default could create the next major financial crisis.
A certain level of fear and concern was understandable when Greek President George Papandreou announced there would be a referendum on the new bailout plan imposed on his country. The global economy is still unstable, top-heavy, and still riddled with too-big-to-fail institutions. In a worst-case scenario, Greece could trigger another financial meltdown.
Yet the fear was rarely balanced with an understanding of what's really happening in Greece. There was no acknowledgement that the bailout's terms might be grossly unfair (they are), that they're likely to make a terrible situation even worse (they will), or that Greece is in chaos, misery, and despair. (It is.)
And what was most striking was the assumption the elite -- the 1%, if you will -- have veto power over the democratic process. In most of the commentary that flowed from the powerful and the press, a surprising number of world leader didn't even acknowledge that Greece had the right to its own democratic decision-making process.
South Korean President Lee Myung-bak, whose nation will benefit from "bipartisan" U.S. actions to create a free trade agreement between the two countries, said that "The world has plunged into fears again because of the Greek prime minister's radical step to hold a referendum." Closer to home, French President Sarkozy said that "the Greek's gesture is irrational and, from their point of view, dangerous."
The first part of that statement is a slur against democracy. The second part is, of course, a threat.
What's the Greek word for 'shafted'?
Few are asking who created the Greek debt problem, or who benefited. As in the United States, deficit-creating behavior primarily served the wealthy, the powerful, and the banks. Tax collections for corporations and the wealthy have been very low in Greece. And while tax evasion is commonly for everyone from taxi drivers to millionaires, it takes a lot of cheating cabbies to equal one rich tax dodger.
Bankers didn't give Greece these loans out of kindness, either. They saw an opportunity and they took it. That's why they're being asked to take "haircuts" and lose part of the loan repayment (a reasonable measure that hasn't been yet considered in the US mortgage crisis.)
Greeks are struggling with devastating levels of unemployment, a declining standard of living, and widespread social unrest. While the austerity measures imposed on it do include tax hikes and measures to reduce tax evasion, they will have an especially devastating impact on already hard-hit middle class Greeks. They're the ones who went to work, paid their taxes (wage earners were disproportionately taxed because of the evasion), and paid into their Social Security and health funds with the expectation these services would be available when they were needed.
It doesn't matter now. They won't get their say. Once again the elites were given veto power over democracy. A "bipartisan" revolt of politicians in both major parties made sure of that, and today George Papandreou is looking forward to joining the swelling ranks of Greece's unemployed.
The public's widespread dissatisfaction is understandable, and this stifling of democracy should raise even more fears for Greece's future stability than the referendum did. What will happen if the Greek people continued to be denied a place at the bargaining table as their fate is decided? Given that nation's troubled past, and its tormented present, there's always John F. Kennedy's quote to consider: Those who make peaceful evolution impossible make violent revolution inevitable.
Elites Only
But what does this have to do with us? We certainly don't face Greek-level problems. In fact, it serves the elite's narrative to suggest otherwise. Our currency is the dollar, which helps a great deal. We're a commanding world economy. We have the money and resources to fix our joblessness problem, if we only had the will, and we're not part of a larger group like the European Community.
Bet we are part of the G20, which this week reaffirmed its obsession on austerity measures even as Europe sinks under the weight of those already imposed. Washington's Powers That Be are still obsessing about austerity, too.
Here, as in Europe, public opinion is expected to take a back seat to the elites. Yet another poll has been released which shows that a majority of people in all age groups oppose cutting Social Security to fix the deficit. Past polls have shown that strong majorities of Republicans, independents, and even Tea Party member oppose such measures.
Yet despite the strong public objections, and despite the fact that there's overwhelming evidence these cuts are unnecessary and counterproductive, an elected "Super Committee" is likely to recommend them anyway. The usual Congressional rules have been waived in order to force their proposal to a simple up-or-down vote, with no possibility of filibuster and no chance to offer amendments. And US politicians will be under as much pressure to vote for this austerity measure as their Greek counterparts were.
Vetoing Democracy
The same week that democracy was under siege in Greece, the "Super Committee" heard from a blue-ribbon panel representing the austerity elite: a Republican hater of Social Security recipients; a Democratic member of Morgan Stanley's Board of Directors; a Republican ex-Senator; and an economist aligned with the Democratic establishment advocates for entitlement cuts. The activities of all four been funded by Republican anti-government-spending billionaire Pete Peterson.
In words that echoed those of the South Korean and French Presidents, the quartet told the unelected committee that if it fails to offer austerity measures which the public rejects, "We haven't got a prayer and neither have you." The elites have spoken: The public is to be ignored. Democracy's been vetoed.
Here's what they didn't teach us in civics class: Democracy has always been controversial. "Democracy... is a charming form of government," said Plato, "full of variety and disorder; and dispensing a sort of equality to equals and unequals alike." He could sound like a Tea Partier at times. "Dictatorship naturally arises out of democracy," he said, " and the most aggravated form of tyranny and slavery out of the most extreme liberty."
Plato's aversion to democracy is shared by a lot of powerful people these days. But politicians, especially those whose party derives its name from the democratic principle, would be better off remembering another Greek philosopher, Aristotle, who said that "The only stable state is the one in which all men are equal before the law."
Representatives from groups that represent Social Security and Medicare recipients, the disabled, and the elderly requested an opportunity to address the Super Committee. They wanted to present their case for preserving these programs, a position that's supported by compelling evidence and supported by majorities in all political parties and of all generations.
Their requests were ignored.
Follow Richard (RJ) Eskow on Twitter: www.twitter.com/rjeskow
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Sadly, those on the "Super-Committee" are all Congressional representatives, who are guaranteed full salary and the very government-run, taxpayer-subsidized health care benefits they demonize as "socialist" for life, and into which they don't pay a dime. Hence, they don't care about S.S. or Medicare-Medicaid.
Ask those former and current folks from/in Congress if they'd buy private health insurance on the "free-market" as they advocate. Ask them to pay involuntary FICA payroll taxes and be reliant on S.S. & Medicare rather than their lavish retirement, which is guaranteed even if they're expelled, convicted (of a crime) or resign from office.
Those folks are taking in hoards of cash, gifts, perks, etc. from contributors: defense contractors, Norquist, big oil-pharma, health insurers and the banks. The banks, particularly are salivating at the prospects of S.S. going private, so they can get their hands on PAYROLL TAXES to increase their profits.
The folks on the Committee are getting wealthy, and taking orders from their benefactors, in essence, selling (pimping) their constituents' lives for their own personal gain, and re-election.
At the core, many voters just don;t do their due diligence, don't look for information, are not educated, and they elect the people who just promise more things. You get the democracy you crave for...
Thus what about the greek referendum: first is the bailout "unfair"? hmmm let me think, was it unfair to give subsidy to Greece for 15 years because of the Euro and inclusion in the EU? yes to begin with. Are the terms of the bailout themselves unfair? no. What could be inferred as unfair are the terms of the austerity package. WHICH IS AN ISSUE OF INTERNAL GREEK POLITICS! ie it comes from election taken by the greek themselves...
It is a widely known fact that Greece abandoning the euro or the eurozone would cost the country a huge part of its GDP, and kick-off huge inflation and shortages . But this belief lies on basic economic analysis that most of the population does not know and thus the risk of a referendum is about people thinking "it cannot be worse" while in fact, it can...
If, conversely, they'd refuse the bailout, default on the debt, get out of the EU, and return to the drachma, then they'll have difficult times ahead but without the insupportable burden of debt. Numerous countries have gone that route and contrary to all the scare talk, their economies recover within a few years. Continued and increased austerity measures are intended to prevent the banks and investors from having to take too much of a haircut while inflicting the pain on the people who did NOT cause the problem. That they plunge the country into an economic death spiral is of no import to the global elite once they've gotten their pound of flesh. Eventually the Greeks will have no choice but to default. Better now than prolonging the suffering and defaulting later.
Please see "Text of Draft Proposal for Bailout Plan"
http://www.nytimes.com/2008/09/21/business/21draftcnd.html
Please note the 'get out of jail free' section:
"Sec. 8. Review.
Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency."
Please note the protection of the bankers & shills (henceforth known as the ones who got us INTO this mess) at the expense of the taxpayers (henceforth known as the easy marks):
"Sec. 3. Considerations.
In exercising the authorities granted in this Act, the Secretary shall take into consideration means for--
(1) providing stability or preventing disruption to the financial markets or banking system; and
(2) protecting the taxpayer."
One of the worst things about this imbroglio is ...
the Con Game continues ...
Greeces Democracy is what caused the mess, not the rich...their are not enough Rich folks in Greece to make a difference. The reason everyone dodges taxes there is simple...they ALL want the Benefits....and no one wants to pay for it...
The People of Greece demanded and created the mess they are in...not the Rich, not the Bankers, but the Greek votors...they wanted a free ride, and they had one for a long time...now its over.
Pointing fingers at the Banks, "The Elite"...or anyone but themselves is just the ultimate in Buck Passing...Democratic Countrys that go broke...cause ther own messes...we did, the Greeks did, the Irish, Spain, Italy
The bankster crashed the world economy, and Greece got caught up in it.
That's it.
Had the banksters not crashed the economy, Greece would have probably been fine.
But the Banksters love it when you ignore the 14T$ they get from our FED, and blame the people, and democracy for our problems.
BLaming GOldman's is silly..the Greeks wanted an angle..and they got in one.
As for the Bank bailouts..you seem to forget something, the big banks paid all of it back over a year and a half ago..and the Fed had it's most profitable year in it;s history..making over 70 Billion last year on loans..
Our Government gives the power to these banks..and YOU and the rest of America electred them...stop whinning like a child and vote them out..including Obama..he is after all GOldman Sach's man..as well as JP Morgan and GE's..smarten up and stop buying the blame game..we have the government WE voted for..100%
No bank will loan a dime to Greece without concessions that makes the EU Bank deal look like the deal of the century. ALready Greek Bonds are paying 18%...and rising. WHihc means the country is now about as credit worthy as Somalia.
On the one hand there is the (probably even negligible) odd timing that Prime Minister Papandreou didn't inform his partners in this deal (=the heads of government/state of the other 16 nations) while they were negotiating.
What is more important is this: On the one hand, Greece requires to be loaned! another 8bn from the first bailout deal end of November/ early December. A Greek referendum is limited regarding the deal: They cannot (as some seem to imply) vote down the reform/austerity part but still expect that they will get the money. Without a deal, without the money, Greece has to default. But with an imminent, real chance of full default, the other 16 nations cannot loan additional 8bn. They are by oath sworn in to protect the interest of their people best. So, it was a challenging task to alone hold a referendum in this narrow timeframe. There was certainly no time left to renegotiate or anything. It was an "all in" move.
Their ridiculous public government system of abuses from the ones above include a completely dysfunctional tax system where cheating on taxes and other government services is rampant.
For this, the other EU nations (mostly Germany) including Slovakia where average salary is about $1,000 and who played by the rules are expected to bail them out. This cost will be born by these countries and citizens. Estimates include that every family in Britain will have to pay about $20K to bail out the piggish behavior of the Greeks. So instead of populism about their right to vote for austerity, they gave up the right when their profligate spending and corrupt government got them in the mess. You should be thinking about how the rest of Europe will suffer and in particular countries like Slovakia who are poor, played by the rules and must now pay up for Greece.
BTW - if you want the ultimate in democratic processes, then do not let legislators decide on the budget but let every American allocate their taxes to the line items they like not some politician chooses.
We're also equally free to come up with $1 million to buy our own politicians. If we "choose" not to do that, then we're free to defend ourselves as best we can from the unfettered power of banks and corporations.
Americans need to realize not only what's going on but recognize that we're in this together with the people of most of the rest of the world. It's time for a global uprising.
I think it's actually worse than that. It's becoming increasingly clear that governing consists of backroom deals brokered by the wealth elite for the wealthy elite. Our so-called leaders are merely the messengers and mechanics through which the deals come to pass.
Let's be honest, you read it and the praise of the American people's maturity, homogeneity and peaceful debate which is contrasted with the European's aggression, small- or single mindedness and irresponsibility ... and you involuntary think: Tea Party?
I think the decisive sentence is about halfway through that paragraph/ chapter: It's about the free and fair and equal elections which - in his time - ofc did only happen in the US, not in Europe. But times have changed since he wrote down his observations. So, within the full context we can today say that this chapter has become obsolete. Deficits in democracy we see today are different and come from different sources (role of the media, mass communication, mass psychology ... French psychologist Gustave Le Bon comes to mind; among many other challenges to redefine what democracy means in our century).
Le Bon was a medical doctor, by his oevre he would be better characterized as a sociologist, by modern standards. IMO.