The post The Pandemic as a Catalyst for Institutional Innovation appeared first on P2P Foundation.

As any nuanced thinker will tell you, there are no easy answers in this world. However given the massive upheavals we are experiencing, it is incumbent on us to push forward through sense-making and connecting with our values and our visions. In this book chapter we offer three scenarios for the futures of the commons movement and social change. We argue that we need to build a meta language for commoning – a “protocol commons”. This will allow us to weave a broader movement across many different actors that are working for commons in their own way (even when they are not calling it commons or commoning). We call this an “ecology of the commons”. 

The book chapter is part of an ambitious anthology by Anne Grear and David Bollier titled ​”The Great Awakening: New Modes of Life amidst Capitalist Ruins​”  (​Punctum Books, Santa Barbara) ​​

​I​t is an ambitious ​anthology that brings together contributions from​ ​Sam Adelman, David Bollier, Primavera De Filippi, Vito De Lucia, Richard Falk, Anna Grear, Paul B. Hartzog, Andreas Karitzis, Xavier Labayssiere, ​and ​Maywa Montenegro de Wit​, as well as including our work.​ In their own words: 

“It is clear that the multiple, entangled crises produced by neoliberal capitalism cannot be resolved by existing political and legal institutions, which are imploding under the weight of their own contradictions. Present and future needs can be met by systems that go beyond the market and state. With experiments and struggle, a growing pluriverse of commoners from Europe and the US to the Global South and cyberspace are demonstrating some fundamentally new ways of thinking, being and acting…. We learn about seed-sharing in agriculture, blockchain technologies for networked collaboration, cosmo-local​ ​peer production of houses and vehicles, creative hacks on law, and new ways of thinking and enacting a rich, collaborative future. This surge of creativity is propelled by the social practices of commoning new modes of life for creating and sharing wealth in fair-minded, ecologically respectful ways.​” ​

The ​anthology will be available in September​ 2020 through Punctum Books here. A preprint of the book chapter can be seen here.

Lead image:  CityTree עץבעיר 

The post Awakening to an Ecology of the Commons appeared first on P2P Foundation.

Do we really need to sacrifice privacy for health in the fight against covid-19? The DP-3T protocol can save lives without furthering surveillance capitalism.

• Originally published at n.case.me.
• Download this comic as a .zip!
• Sources: DP-3T, TCN Protocol, Ferretti & Wymant et al

The post How Contact Tracing Apps Can Foil Both COVID-19 and Big Brother appeared first on P2P Foundation.

I sympathize with the systemic style of this perspective, but I think they’re looking at it the wrong way. No, we are not being attacked by nature for our sins — but this is a shared, collective illness. Covid-19 is an opportunistic infection, attacking the human organism as a whole.

I don’t look at it as a good thing — not at all — but it reminds me of how we get sick as individuals in real life. We get run down from too much work and stress. We don’t take any downtime for family and friends. We don’t have enough laughter in our lives. Or we do shift work, alternating days and nights with little regard for our biological clocks. We start drinking coffee or taking speed to keep going and then more medicine to deal with the depression.

We get the warnings: bad sleep, bad moods, and bad sex. We experience less satisfaction in general; our relationships decline. Then our body tries to warn us, too: We start feeling run down and get headaches that Advil won’t take away. Then something else stressful hits, and bam, we get sick. Does that mean germs and viruses aren’t real? That illness is entirely psychosomatic? Of course not. But the bacteria or virus is just the figure. It’s always there — or something like it is—ready to take advantage.

More important, though, surrendering to illness is our body’s last-gasp effort to resist the greater, environmental stresses. Getting sick is the last thing we do before either withdrawing from the stressors or collapsing altogether.

I’ve begun seeing the Covid-19 virus this way. It’s not a pretty thought, but what if this virus is our last-gasp resistance to the ravages of techno-capitalism? It’s not a good thing in itself — no. But it is addressing a real problem. Think of the virus as more like the President Trump phenomenon — an illness that reveals much bigger systemic woes and forces us to confront them. Only in this case, the virus is a weapon generated by life itself against the repression and exploitation of humanity by the market, technology, and other unchecked forces of death and destruction.

We were like a person working so hard and for so little nourishment in return that we had to take steroids to keep going. The market demanded growth from us collectively—more growth so that shareholders could passively extract more value from us. But they were taking our jobs and social safety nets away at the same time. We need to work more while earning less, patching together an income from three or four different gig jobs, each one with less support and security than the last.

This growth mandate — the one we’re supporting — has nothing to do with our survival or meeting human needs. The only ones who need the economy to keep growing—and for us to keep accelerating — are the bankers and shareholders passively extracting value from our labor, the people who are not on the ground working or creating value. But those of us on the ground have no way to push back. We have no way to slow the economy or to challenge its acceleration. China’s slaves keep making more cheap tech for America to keep deploying more surveillance and disaster capitalism.

The only way we humans could slow down the economy was to get sick. Just like the person whose body can’t take any more stress. It says “no more.” That’s what our collective body is doing. We couldn’t crash the market back in 2007, so now we are crashing ourselves.

The Chinese are in the same position. No, the transition of China from a farming nation to an urban slave metropolis didn’t work. Those colossal wet markets — where hundreds of species of living and dead animals fester all over each other and mutate new pathogens — that’s not some cultural tradition. It’s an artifact of rapid industrial expansion. And the transition of America from a worker/craftsperson economy to one of global digital extraction doesn’t work, either. It has decimated every other aspect of commerce and community. We’re dying here.

But if our conscious, political, social mechanisms are not capable of arresting this — if we can’t elect a Bernie Sanders or an Elizabeth Warren, develop sustainable local economies, or even bake bread profitably in a society dominated by the interests of corrupt global supply chains, then our corrective measures are going to come from somewhere else: the subconscious, like Trump. Or our biology itself, like Covid-19.

Remember when you’d get sick, and your parent or your partner would say, “You’ve been working too hard. I told you to take better care of yourself.” That’s your body revolting, saying “enough” — even if it does so in a self-destructive way. Well, in that sense, Covid-19 is our collective body saying “enough” and trying to do for us what our activism and politics and community organizing have failed to. Yes, some of us will die. That’s how desperate we’ve become. It’s a kamikaze attack of human biology against systems that threaten our very survival.

This is the intervention.

Lead Image: Lego DNA by mknowles

The post We Are Not the Virus. We Are the Kamikazes. appeared first on P2P Foundation.

Especially in these times, honoring our ancestors is investing in and trusting alternatives that are based in dignity, health and livelihoods for all of us. 

In the early 1960s, my grandma was a secretary at the Caymanas Sugar Estate in Portmore, Jamaica. She helped the cane cutters who worked on the estate’s land create a credit union. At that time, workers were acknowledging the problematics of who owned the capital and resources on their island. In 1962, Jamaica gained independence from the British, with the hopes of more national equity and securing workers rights. My grandmother understood that helping the cane cutters pool their money to create a credit union was one step closer to liberation from the confines of colonialism and capitalism. At the time she thought of it as a necessity—as the right thing to do—rather than an alternative economy.

Throughout the Caribbean and Africa, the sharing of resources and money is not new. Sou sous and other types of community banking are age-old practices. These traditions even emigrated overseas to places like the U.K. and Canada along with Jamaicans who realized they would not receive the queen’s royalties they learned of during their schooling.

Like Jamaican cane cutters and emigrants realizing they lacked access to the things they needed, we also now find ourselves similarly situated in the current pandemic. As we recognize that people need immediate access to resources, we are realizing that the most effective tools are local economies, regional manufacturing systems, and community banking. 

As people succumb to fear, individuals are hoarding the resources we need to protect ourselves against the COVID-19 virus, children are missing meals since schools are shut down, city governments are realizing housing should be a human right as we are called to Shelter in Place, and the federal government is finally acknowledging that freezing student loans will actually bolster the economy. It is clear the systems that currently shape our societies do not work towards human continuity or resilience. In fact, it is this way of life that has resulted in the crises that we are currently in: the health crisis, climate crisis and spiritual crisis. 

The pervasiveness of capitalism has overshadowed other types of economies so that we don’t think any other way is possible. Rather than many economies we are told there is one economy, and that one is capitalist. The dominant globalized economy has become so embedded into everyday life that investing in and finding accessible alternatives is a barrier for many of us. In the U.S., buying local clothing or food is a luxury. It is more expensive to buy locally made products than buying fashion or produce from thousands of miles away. 

If we are going to make it to the other side of this pandemic and this deteriorating world, then just as others before us have recognized, we have to rely on community interdependence, cultural equity, and alternative economies as a basis moving forward.

Luckily, we don’t have to wait for a SciFi future to participate in alternatives that support a better life for all of us. My grandmother knew this more than half a century ago. Around the world, communities are participating in and building other economies. I honor the work she did by investing in and participating in these communities. I am grateful to be part of an alternative circular economy with a council of womxn. I hope my experience can shed light on some of the current possibilities. 

I joined a gifting economy: a Mandala circle. Along with several other amazing womxn, we each gift whichever womxn is in the center of the circle at the time we decide to join. Eventually it’ll be our turn in the center of the circle to receive gifts. We have calls three times a week to discuss our dreams, intentions, challenges and proudest moments. We support one another and share resources. We share what we’d like to do and want to do if money was not an issue. We talk about our work and all that we are currently doing. We laugh and build sisterhood. 

The gifts the womxn in the center of the circle receives are monetary. However, giving the gift is not transactional, based in ownership or capital. It is based in love, trust, and the belief that we all deserve to live how we want without having to compete with each other. We gift this womxn knowing that she is free to do whatever she’d like with the money. The womxn in the center is not expected to pay it back and does not have to use it for professional purposes—although she can. We do not put barriers or burdens on the gifts, and trust she will make the right decision with her gifts. When it’s each womxn’s turn in the center, she receives the same agency and trust. We are investing in each other rather than stocks that are attached to extractive, exploitive enterprises. 

There are several of these Mandala circles. Some circles gift different amounts of money, and you can start out in a fractal Mandala circle in order to amass enough money to participate in the larger one. The Mandala circle splits so that it can multiply once the womxn in the center has received eight gifts. It is precisely this multiplication factor that allows this form of investment to be soundly sustainable, allowing more womxn to join the movement. At no point in the Mandala circle do you have to beg anyone for money, go to a bank, worry about interest, report on what you’re doing with the money, exploit anyone to get the money…you just have to be engaged in community with others. 

In my particular Mandala, each womxn will receive several thousand dollars without strings attached after gifting a little over a thousand dollars to whomever is in the center of the circle when she joins. We do not advertise on social media or do marketing. We do not hold space for those who only want to join for the money. Our circle is not about consumption, trends or not having enough. It is about rejuvenation, healing, and abundance. There is enough in the world, it’s just not distributed fairly. When we have money, we usually spend it on companies that are greedy and do not care about us. This is primarily because these companies are constantly in our face with advertising and usually widely accessible. In our Mandala, we put our money where our values are when we can—whether we have a little of it or a lot.   

We are linked in our shared values that thriving livelihoods and collective economics is a way forward. We are connected in our understanding that the ways of our ancestors can get us to the other side of this unsustainable violent system. We are bound by the belief that interdependence and supporting one another is the only way we will all survive. We believe in reciprocity and concentric circles, rather than greed and hierarchies. We believe that sometimes it is your turn to give and sometimes it is your turn to receive. Sometimes it is your turn to lead and sometimes it is your turn to follow. We know that everyone in the circle is deserving and worthy.  We know that giving a gift is both selfish and selfless: because you feel good when you do it and the person who gets it feels good when they receive it. 

The cane cutters’ credit union in 1960s Jamaica my grandma helped to start and the Mandala circle I’m a part of today are examples of alternatives to the current mainstream economic model. The current economic model really only benefits a wealthy few. The “economy” does not have to feel competitive, exclusive and exhausting. An economy can feel refreshing, collective and inclusive. These are the economies we need to support and build to combat this pandemic, to stop the climate crises, and to transform current ideological backwardness. These are the economies we need to trust. We need each other. The Mandala circle I am in—and other alternative economies—start from this premise. 

The time is now, we can’t go back to “normal”— and why would we want to anyways. As Arundhati Roy  aptly wrote last week in the Financial Times: 

Historically, pandemics have forced humans to break with the past and imagine their world anew. This one is no different. It is a portal, a gateway between one world and the next. We can choose to walk through it, dragging the carcasses of our prejudice and hatred, our avarice, our data banks and dead ideas, our dead rivers and smoky skies behind us. Or we can walk through lightly, with little luggage, ready to imagine another world. And ready to fight for it.

Here are a few alternatives to check out:

• For Streaming: enjoy videos & films on this worker-owned post-capitalist streaming service
• For Food in the Bay Area (co-ops): Mandela Grocery Store and Rainbow Grocery
• For Health in the Bay Area: Berkeley Free Clinic
• For Indigenous Solidarity: contribute to the Shuumi Land Tax, supporting an indigenous women-led land trust
• For Land & Food Justice for POC in California: donate to the Minnow Project
• For Solar Power & Renewable Energy in the Bay Area: worker-owned  Sun Light & Power can provide affordable, clean energy for your affordable housing unit or non-profit organization
• For Supplemental / Alternative Education for Black People: 400 + 1 collective centers Black liberation and prosperity (*specifically for Black communities)
• For Banking & Money: Black-owned Credit Union of Atlanta (*you don’t have to be Black to put your money in this credit union)
• For more information on the Mandala circle I’m in send me a direct message, although many circles are all womxn the Mandala Movement is open to all

Lead image: mandala by xavo_rob 

The post Pandemic Priorities: supporting alternatives now is promoting a sustainable economy appeared first on P2P Foundation.

The crisis triggered by COVID-19 is challenging the very meaning of coexistence and cohabitation and redesigning the boundaries of public space in an absolutely unprecedented way, with unpredictable results.

Written by Francesco Martone and originally published by the Transnational Institute.

Measures to contain free movement and prohibitions on assembly have led to the temporary limitation, if not suspension, of some fundamental rights, such as the right to mobility, to meet, to demonstrate, to family life.

Over four billion people are now suffering under varying degrees of restriction of civil rights and freedoms. Nevertheless, this crisis is occurring in a global context where democracy and the civic space were already under attack, and this element needs to be duly factored in when analyzing the human rights implication of the crisis and possible remedial actions.

The CIVICUS monitor report “People power under attack” (December 2019) registered a backsliding of fundamental rights and freedom of association, peaceful assembly, and expression worldwide (40% of the world’s population now live in repressed countries, compared to 19% in 2018). The report concluded that civil society is now under attack in most countries, and just 3% of the world’s population are living in countries where fundamental rights are in general protected and respected.

In this context, COVID-19 is in fact representing a major challenge for human rights and the role of the state. Restrictions, such as social distancing, deemed crucial to preventing the spread of the virus pit the fundamental right to health against other fundamental rights and freedoms – albeit temporarily – and challenge the fundamental concept of indivisibility of rights. It is also bringing to light the extensive weakening of the state’s obligation to ensure key social and economic rights, such as the right to health, by means of a robust public health sector, or to a decent job. Millions of people, mostly the most vulnerable, migrant workers, precarious workers are losing their source of income and will be in dire conditions after the medical emergency is over.

As far as the impacts of COVID-19 on fundamental rights and on the quality of democracy are concerned, two situations can be identified. In states where restrictions and violations were rampant before the COVID-19 emergency is being used to strengthen the grip and increase repression and antidemocratic features. These are states where exception is the rule. In states where democracy still exists, albeit with the limitations described in the CIVICUS report, the COVID-19 emergency risks paving the way for dangerous restrictions that might persist also when the “emergency” is supposedly over. These are states, where the rule might become the exception. These two distinctions are key also to understand what the different challenges for international solidarity and social movements are. In both cases the space of initiative – current and future – would be jeopardized or at least affected. Social distancing is in fact hindering the possibility of organizing in traditional terms, (assembly, demonstrations, meetings, advocacy and solidarity delegations, international civil society monitors). To various degrees, countries in the so-called Global North also, where NGOs or social movements operate or are located, were already starting to suffer from a restriction of civic space (see for instance criminalization of solidarity, or restrictions and violation of privacy for antiterrorism purposes). The difference is that now the restrictions, of freedom of circulation and movement and the right to assembly in particular, are applied to entire populations.

It will therefore be essential that all measures undertaken to deal with the COVID-19 crisis and its consequences, respect fundamental rights and comply with a rights-based approach. News from various countries does not warrant optimism. From Colombia, for instance, where rural and indigenous communities already under attack before the pandemic are now even more under fire from paramilitary forces: in the last ten days at least six leaders have been murdered. Or in Hungary where Viktor Orban’s recent moves have allowed him to have full powers to manage the crisis. Or the Philippines, or Egypt or Turkey. It comes as no surprise then that in various recent statements the UN has called upon states to ensure the respect of fundamental rights, to protect the most vulnerable and to ensure that the COVID-19 emergency is not used to trample on peoples’ rights, and to justify further repression.

A brief analysis of the situation in Italy

Italy was one of the countries where COVID-19 spread with dramatic and tragic intensity. Some regions in the North, (Lombardy, Veneto, Emilia Romagna) are ranking first in terms of contagion, hospitalized patients and death toll. The spread of the pandemic in the country has been accompanied by unprecedented restrictive measures that have triggered an interesting debate on legality, democratic legitimacy, and states of exception and emergency and a growing number of initiatives by social movements, civil society, and ordinary citizens.

First and foremost, we must consider the extent to which the management of the COVID-19 emergency risks opening or deepening existing fault-lines in the democratic basis of the country and its governance structure. For instance, we are witnessing a risky overlap of competences and fragmentation of the polity. On the one hand the government, a coalition between the Democratic Party and the 5Star movement plus other minor parties, on the other the governors of the hardest-hit regions, Lombardy and Veneto (run by the right-wing League), on the other the pervasive presence of the “experts”, the Civil Protection Service (Protezione Civile) and the National Institute for Health (Istituto Superiore di Sanità). The latter are those that are instructing the political decisions: the “political” government is being substituted by some sort of medical governance and crisis/disaster management approach. Hence, any initiative that is being undertaken is hard to challenge politically, since it is motivated by scientific and technical assumptions and by the alleged goal of ensuring the containment of the virus and, by doing so, fulfilling the obligation to respect the constitutional right to public health.

The emergency is somehow “depoliticizing” the public debate. To add to this, the political turf battle between the government and those regions led by representatives of the main opposition party have led to the adoption of a multitude of decrees and ordnances that somehow form a patchwork of regulations and prohibitions, that make it harder to ensure proportionality and accountability and leave broad discretion to public officials. The use of the military in policing “social-distancing” measures is a case in point. It should be stressed that the deployment of the military for public security purposes is not a novelty in the country. Troops have been deployed to ensure protection of sensitive targets against hypothetical terror attacks, but their rules of engagement never included the enforcement of public order as the case could be now. Some “regional governors” in fact urged the deployment of troops in the streets to ensure compliance with “social-distancing” orders.

Secondly, the de-legitimation of Parliament and of the so-called “political caste” has reactivated speculation on the need for a “strong-man” or of the centralization of executive power. This de-legitimation was already severe before the outbreak and needs to be read in conjunction with the fact that, before the COVID-19, two key political deadlines were approaching, notably administrative elections and the referendum for the reduction of the number of members of Parliament. In fact for the first time ever the President of the Council of Ministers, currently Giuseppe Conte, has been issuing so-called Decrees of the President (DPCM), a brand new category of acts , since decrees are usually issued by the government as a whole. These were made executive without parliamentary debate and without their transformation into law, and hence without a sort of public scrutiny as the Constitution mandates.

In fact, the Italian Constitution does not contain any norm related to the state of emergency, while Parliament’s activity has been reduced to a minimum because of the spread of the virus among Members of Parliament and only after a few weeks from the declaration of the state of emergency was there a parliamentary debate on the COVID-19 and related government measures. More worryingly, Italy has no independent human rights institution that would monitor compliance of government’s activities and restrictions of fundamental rights and freedoms to international human rights standards and obligations as mandated by international covenants to which Italy is part, such as the International Covenant on Civil and Political rights.

Third, beyond exposing these gaps and fault-lines, COVID-19 is also bringing to light the systemic imbalances, injustices and lack of full achievement and even denial of key social and economic rights in the country. As many as 2.7 million people are at risk of hunger because they have lost any source of revenue or income due to the lockdown, and at least 20 million people are now living on subsidies and other forms of emergency income introduced by the government. These figures account for a the broad informal economy and precarious or free-lance work. Also, the dramatic rush to step up intensive care units and to increase the number of health care personnel, point to the impact of budget cuts on the public health care system carried out in the past, with all the consequences it carries in terms of ensuring equitable access to public health care for all. The current inhumane conditions for detainees, due to overcrowding, also came to public attention after a series of prison riols triggered by fear of infection.

Lastly, other estimates point to the risk of a substantial shortage of fruit and produce in the markets, since at least one quarter of annual production is guaranteed by 260,000 seasonal migrant workers who now cannot travel due to the restrictions. Many of them have been working in the past in semi-illegal or extreme conditions. or have ended up involved in organized crime. Concerns have already been voiced about the potential of the Mafia to exploit this situation by offering support and access to credit to those who lost their jobs and hence cannot ensure their basic subsistence.

Parallel to the official narrative, that hinged on a mixture of cheap patriotism, restrictive measures, and scientific governance of social processes, other practices developed, that represent an important social and political capital for the future: online assemblies; a flourishing theoretical debate on COVID-19 and its implications at all levels; a growing number of initiatives by social movements; a proposal for an Ecofeminist Green New Deal; campaigns for better conditions in jails and for amnesty; for a so-called “Quarantine minimum income”; a recently published platform of civil society organizations and social movements working on trade, economic justice and against extractivism, and in parallel a growing number of solidarity initiatives are clear signs of another Italy that does not accept resignation or helplessness. An Italy that does not accept the idea that in order to tackle the virus and its implications people have to solely comply with orders aimed at limiting, repressing or imposing “do-nothing” behavior. Support services for the elderly, the most vulnerable, those that live alone in their homes, food banks, psychological support and assistance, purchasing and home delivery of drugs are among the most recurrent self-organized initiatives, that express an attempt to turn the feminist concept and practice of “care” into political practice. Civil society somehow transforms itself into a “commune”, and its members into commoners, that collectively organize to foster the respect and pursuit of common goods and rights, such as the right to food, care, solidarity. The challenge will be that of nurturing that mix of theoretical analysis, mobilizing and mutual aid and support from below after the most immediate “medical” emergency will slowly leaving the space to the economic and social one.

Further challenges will be that of linking up those processes with the global level, with similar and parallel processes elsewhere, adopting a “decolonized” approach that would always consider power imbalances locally and globally. COVID-19 will not bring the automatic transformation of our societies or the collapse of capitalism, or a revolution by proxy. Rather, the way and intensity of activation of social movements’ response “at present” will also be key to determine how these, and new and innovative modalities of conflict, proposal and self-organization can forge our future.

Photo credit Daniel Chavez (TNI)

The post Italy, democracy and COVID-19 appeared first on P2P Foundation.

Think Bigger

Whatever you might be thinking about the long-term impacts of the coronavirus epidemic, you’re probably not thinking big enough.

Our lives have already been reshaped so dramatically in the past few weeks that it’s difficult to see beyond the next news cycle. We’re bracing for the recession we all know is here, wondering how long the lockdown will last, and praying that our loved ones will all make it through alive.

But, in the same way that Covid-19 is spreading at an exponential rate, we also need to think exponentially about its long-term impact on our culture and society. A year or two from now, the virus itself will likely have become a manageable part of our lives—effective treatments will have emerged; a vaccine will be available. But the impact of coronavirus on our global civilization will only just be unfolding. The massive disruptions we’re already seeing in our lives are just the first heralds of a historic transformation in political and societal norms.

If Covid-19 were spreading across a stable and resilient world, its impact could be abrupt but contained. Leaders would consult together; economies disrupted temporarily; people would make do for a while with changed circumstances—and then, after the shock, look forward to getting back to normal. That’s not, however, the world in which we live. Instead, this coronavirus is revealing the structural faults of a system that have been papered over for decades as they’ve been steadily worsening. Gaping economic inequalities, rampant ecological destruction, and pervasive political corruption are all results of unbalanced systems relying on each other to remain precariously poised. Now, as one system destabilizes, expect others to tumble down in tandem in a cascade known by researchers as “synchronous failure.”

The first signs of this structural destabilization are just beginning to show. Our globalized economy relies on just-in-time inventory for hyper-efficient production. As supply chains are disrupted through factory closures and border closings, shortages in household items, medications, and food will begin surfacing, leading to rounds of panic buying that will only exacerbate the situation. The world economy is entering a downturn so steep it could exceed the severity of the Great Depression. The international political system—already on the ropes with Trump’s “America First” xenophobia and the Brexit fiasco—is likely to unravel further, as the global influence of the United States tanks while Chinese power strengthens. Meanwhile, the Global South, where Covid-19 is just beginning to make itself felt, may face disruption on a scale far greater than the more affluent Global North.

The Overton Window

During normal times, out of all the possible ways to organize society, there is only a limited range of ideas considered acceptable for mainstream political discussion—known as the Overton window. Covid-19 has blown the Overton window wide open. In just a few weeks, we’ve seen political and economic ideas seriously discussed that had previously been dismissed as fanciful or utterly unacceptable: universal basic income, government intervention to house the homeless, and state surveillance on individual activity, to name just a few. But remember—this is just the beginning of a process that will expand exponentially in the ensuing months.

A crisis such as the coronavirus pandemic has a way of massively amplifying and accelerating changes that were already underway: shifts that might have taken decades can occur in weeks. Like a crucible, it has the potential to melt down the structures that currently exist, and reshape them, perhaps unrecognizably. What might the new shape of society look like? What will be center stage in the Overton window by the time it begins narrowing again?

The Example of World War II

We’re entering uncharted territory, but to get a feeling for the scale of transformation we need to consider, it helps to look back to the last time the world underwent an equivalent spasm of change: the Second World War.

The pre-war world was dominated by European colonial powers struggling to maintain their empires. Liberal democracy was on the wane, while fascism and communism were ascendant, battling each other for supremacy. The demise of the League of Nations seemed to have proven the impossibility of multinational global cooperation. Prior to Pearl Harbor, the United States maintained an isolationist policy, and in the early years of the war, many people believed it was just a matter of time before Hitler and the Axis powers invaded Britain and took complete control of Europe.

Within a few years, the world was barely recognizable. As the British Empire crumbled, geopolitics was dominated by the Cold War which divided the world into two political blocs under the constant threat of nuclear Armageddon. A social democratic Europe formed an economic union that no-one could previously have imagined possible. Meanwhile, the US and its allies established a system of globalized trade, with institutions such as the IMF and the World Bank setting terms for how the “developing world” could participate. The stage was set for the “Great Acceleration”: far and away the greatest and most rapid increase of human activity in history across a vast number of dimensions, including global population, trade, travel, production, and consumption. 

If the changes we’re about to undergo are on a similar scale to these, how might a future historian summarize the “pre-coronavirus” world that is about to disappear?

The Neoliberal Era            

There’s a good chance they will call this the Neoliberal Era. Until the 1970s, the post-war world was characterized in the West by an uneasy balance between government and private enterprise. However, following the “oil shock” and stagflation of that period—which at the time represented the world’s biggest post-war disruption—a new ideology of free-market neoliberalism took center stage in the Overton window (the phrase itself was named by a neoliberal proponent).

The value system of neoliberalism, which has since become entrenched in global mainstream discourse, holds that humans are individualistic, selfish, calculating materialists, and because of this, unrestrained free-market capitalism provides the best framework for every kind of human endeavor. Through their control of government, finance, business, and media, neoliberal adherents have succeeded in transforming the world into a globalized market-based system, loosening regulatory controls, weakening social safety nets, reducing taxes, and virtually demolishing the power of organized labor.

The triumph of neoliberalism has led to the greatest inequality in history, where (based on the most recent statistics) the world’s twenty-six richest people own as much wealth as half the entire world’s population. It has allowed the largest transnational corporations to establish a stranglehold over other forms of organization, with the result that, of the world’s hundred largest economies, sixty-nine are corporations. The relentless pursuit of profit and economic growth above all else has propelled human civilization onto a terrifying trajectory. The uncontrolled climate crisis is the most obvious danger: The world’s current policies have us on track for more than 3° increase by the end of this century, and climate scientists publish dire warnings that amplifying feedbacks could make things far worse than even these projections, and thus place at risk the very continuation of our civilization.

But even if the climate crisis were somehow brought under control, a continuation of untrammeled economic growth in future decades will bring us face-to-face with a slew of further existential threats. Currently, our civilization is running at 40% above its sustainable capacity. We’re rapidly depleting the earth’s forests, animals, insects, fish, freshwater, even the topsoil we require to grow our crops. We’ve already transgressed three of the nine planetary boundaries that define humanity’s safe operating space, and yet global GDP is expected to more than double by mid-century, with potentially irreversible and devastating consequences.

In 2017 over fifteen thousand scientists from 184 countries issued an ominous warning to humanity that time is running out: “Soon it will be too late,” they wrote, “to shift course away from our failing trajectory.” They are echoed by the government-approved declaration of the UN-sponsored IPCC, that we need “rapid, far-reaching and unprecedented changes in all aspects of society” to avoid disaster.

In the clamor for economic growth, however, these warnings have so far gone unheeded. Will the impact of coronavirus change anything?

Fortress Earth

There’s a serious risk that, rather than shifting course from our failing trajectory, the post-Covid-19 world will be one where the same forces currently driving our race to the precipice further entrench their power and floor the accelerator directly toward global catastrophe. China has relaxed its environmental laws to boost production as it tries to recover from its initial coronavirus outbreak, and the US (anachronistically named) Environmental Protection Agency took immediate advantage of the crisis to suspend enforcement of its laws, allowing companies to pollute as much as they want as long as they can show some relation to the pandemic.

On a greater scale, power-hungry leaders around the world are taking immediate advantage of the crisis to clamp down on individual liberties and move their countries swiftly toward authoritarianism. Hungary’s strongman leader, Viktor Orban, officially killed off democracy in his country on Monday, passing a bill that allows him to rule by decree, with five-year prison sentences for those he determines are spreading “false” information. Israel’s Prime Minister Netanyahu shut down his country’s courts in time to avoid his own trial for corruption. In the United States, the Department of Justice has already filed a request to allow the suspension of courtroom proceedings in emergencies, and there are many who fear that Trump will take advantage of the turmoil to install martial law and try to compromise November’s election.

Even in those countries that avoid an authoritarian takeover, the increase in high-tech surveillance taking place around the world is rapidly undermining previously sacrosanct privacy rights. Israel has passed an emergency decree to follow the lead of China, Taiwan, and South Korea in using smartphone location readings to trace contacts of individuals who tested positive for coronavirus. European mobile operators are sharing user data (so far anonymized) with government agencies. As Yuval Harari has pointed out, in the post-Covid world, these short-term emergency measures may “become a fixture of life.”

If these, and other emerging trends, continue unchecked, we could head rapidly to a grim scenario of what might be called “Fortress Earth,” with entrenched power blocs eliminating many of the freedoms and rights that have formed the bedrock of the post-war world. We could be seeing all-powerful states overseeing economies dominated even more thoroughly by the few corporate giants (think Amazon, Facebook) that can monetize the crisis for further shareholder gain.

The chasm between the haves and have-nots may become even more egregious, especially if treatments for the virus become available but are priced out of reach for some people. Countries in the Global South, already facing the prospect of disaster from climate breakdown, may face collapse if coronavirus rampages through their populations while a global depression starves them of funds to maintain even minimal infrastructures. Borders may become militarized zones, shutting off the free flow of passage. Mistrust and fear, which has already shown its ugly face in panicked evictions of doctors in India and record gun-buying in the US, could become endemic.

Society Transformed

But it doesn’t have to turn out that way. Back in the early days of World War II, things looked even darker, but underlying dynamics emerged that fundamentally altered the trajectory of history. Frequently, it was the very bleakness of the disasters that catalyzed positive forces to emerge in reaction and predominate. The Japanese attack on Pearl Harbor—the day “which will live in infamy”—was the moment when the power balance of World War II shifted. The collective anguish in response to the global war’s devastation led to the founding of the United Nations. The grotesque atrocity of Hitler’s holocaust led to the international recognition of the crime of genocide, and the UN’s Universal Declaration of Human Rights.

Could it be that the crucible of coronavirus will lead to a meltdown of neoliberal norms that ultimately reshapes the dominant structures of our global civilization? Could a mass collective reaction to the excesses of authoritarian overreach lead to a renaissance of humanitarian values? We’re already seeing signs of this. While the Overton window is allowing surveillance and authoritarian practices to enter from one side, it’s also opening up to new political realities and possibilities on the other side. Let’s take a look at some of these.

A fairer society. The specter of massive layoffs and unemployment has already led to levels of state intervention to protect citizens and businesses that were previously unthinkable. Denmark plans to pay 75% of the salaries of employees in private companies hit by the effects of the epidemic, to keep them and their businesses solvent. The UK has announced a similar plan to cover 80% of salaries. California is leasing hotels to shelter homeless people who would otherwise remain on the streets, and has authorized local governments to halt evictions for renters and homeowners. New York state is releasing low-risk prisoners from its jails. Spain is nationalizing its private hospitals. The Green New Deal, which was already endorsed by the leading Democratic presidential candidates, is now being discussed as the mainstay of a program of economic recovery. The idea of universal basic income for every American, boldly raised by long-shot Democratic candidate Andrew Yang, has now become a talking point even for Republican politicians.

Ecological stabilization. Coronavirus has already been more effective in slowing down climate breakdown and ecological collapse than all the world’s policy initiatives combined. In February, Chinese CO2 emissions were down by over 25%. One scientist calculated that twenty times as many Chinese lives have been saved by reduced air pollution than lost directly to coronavirus. Over the next year, we’re likely to see a reduction in greenhouse gas emissions greater than even the most optimistic modelers’ forecasts, as a result of the decline in economic activity. As French philosopher Bruno Latour tweeted: “Next time, when ecologists are ridiculed because ‘the economy cannot be slowed down’, they should remember that it can grind to a halt in a matter of weeks worldwide when it is urgent enough.”

Of course, nobody would propose that economic activity should be disrupted in this catastrophic way in response to the climate crisis. However, the emergency response initiated so rapidly by governments across the world has shown what is truly possible when people face what they recognize as a crisis. As a result of climate activism, 1,500 municipalities worldwide, representing over 10% of the global population, have officially declared a climate emergency. The Covid-19 response can now be held out as an icon of what is really possible when people’s lives are at stake. In the case of the climate, the stakes are even greater—the future survival of our civilization. We now know the world can respond as needed, once political will is engaged and societies enter emergency mode

The rise of “glocalization.” One of the defining characteristics of the Neoliberal Era has been a corrosive globalization based on free market norms. Transnational corporations have dictated terms to countries in choosing where to locate their operations, leading nations to compete against each other to reduce worker protections in a “race to the bottom.” The use of cheap fossil fuels has caused wasteful misuse of resources as products are flown around the world to meet consumer demand stoked by manipulative advertising. This globalization of markets has been a major cause of the Neoliberal Era’s massive increase in consumption that threatens civilization’s future. Meanwhile, masses of people disaffected by rising inequity have been persuaded by right-wing populists to turn their frustration toward outgroups such as immigrants or ethnic minorities.

The effects of Covid-19 could lead to an inversion of these neoliberal norms. As supply lines break down, communities will look to local and regional producers for their daily needs. When a consumer appliance breaks, people will try to get it repaired rather than buy a new one. Workers, newly unemployed, may turn increasingly to local jobs in smaller companies that serve their community directly.

At the same time, people will increasingly get used to connecting with others through video meetings over the internet, where someone on the other side of the world feels as close as someone across town. This could be a defining characteristic of the new era. Even while production goes local, we may see a dramatic increase in the globalization of new ideas and ways of thinking—a phenomenon known as “glocalization.” Already, scientists are collaborating around the world in an unprecedented collective effort to find a vaccine; and a globally crowdsourced library is offering a “Coronavirus Tech Handbook” to collect and distribute the best ideas for responding to the pandemic.

Compassionate community. Rebecca Solnit’s 2009 book, A Paradise Built in Hell, documents how, contrary to popular belief, disasters frequently bring out the best in people, as they reach out and help those in need around them. In the wake of Covid-19, the whole world is reeling from a disaster that affects us all. The compassionate response Solnit observed in disaster zones has now spread across the planet with a speed matching the virus itself. Mutual aid groups are forming in communities everywhere to help those in need. The website Karunavirus (Karuna is a Sanskrit word for compassion) documents a myriad of everyday acts of heroism, such as the thirty thousand Canadians who have started “caremongering,” and the mom-and-pop restaurants in Detroit forced to close and now cooking meals for the homeless.

In the face of disaster, many people are rediscovering that they are far stronger as a community than as isolated individuals. The phrase “social distancing” is helpfully being recast as “physical distancing” since Covid-19 is bringing people closer together in solidarity than ever before.

Revolution in Values

This rediscovery of the value of community has the potential to be the most important factor of all in shaping the trajectory of the next era. New ideas and political possibilities are critically important, but ultimately an era is defined by its underlying values, on which everything else is built.

The Neoliberal Era was constructed on a myth of the selfish individual as the foundational for values. As Margaret Thatcher famously declared, “There’s no such thing as society. There are individual men and women and there are families.” This belief in the selfish individual has not just been destructive of community—it’s plain wrong. In fact, from an evolutionary perspective, a defining characteristic of humanity is our set of prosocial impulses—fairness, altruism, and compassion—that cause us to identify with something larger than our own individual needs. The compassionate responses that have arisen in the wake of the pandemic are heartwarming but not surprising—they are the expected, natural human response to others in need.

Once the crucible of coronavirus begins to cool, and a new sociopolitical order emerges, the larger emergency of climate breakdown and ecological collapse will still be looming over us. The Neoliberal Era has set civilization’s course directly toward a precipice. If we are truly to “shift course away from our failing trajectory,” the new era must be defined, at its deepest level, not merely by the political or economic choices being made, but by a revolution in values. It must be an era where the core human values of fairness, mutual aid, and compassion are paramount—extending beyond the local neighborhood to state and national government, to the global community of humans, and ultimately to the community of all life. If we can change the basis of our global civilization from one that is wealth-affirming to one that is life-affirming, then we have a chance to create a flourishing future for humanity and the living Earth.

To this extent, the Covid-19 disaster represents an opportunity for the human race—one in which each one of us has a meaningful part to play. We are all inside the crucible right now, and the choices we make over the weeks and months to come will, collectively, determine the shape and defining characteristics of the next era. However big we’re thinking about the future effects of this pandemic, we can think bigger. As has been said in other settings, but never more to the point: “A crisis is a terrible thing to waste.”

Lead image: City vibe / Ambiance urbaine #03 by Napafloma-Photographe

The post Coronavirus Spells the End of the Neoliberal Era. What’s Next? appeared first on P2P Foundation.

While politicians clearly hope that massive government bailouts will restore the economy, it’s important to recognize that this is not just a financial crisis; it’s a social and political crisis as well. Many legacy market systems – generously subsidized and propped up by state power – are not really trusted or loved by people. Do Americans really want to give $17 billion to scandal-ridden Boeing while letting the post office go bankrupt? It is too early to declare that the old forms will never return, and we do need to remember that the authoritarian option is dangerously close. But it is clear that the future will have a very different pattern.

To me, one thing is obvious: searching for the rudiments of a New Order should be our top priority once emergency needs are taken care of. We need to identify and cultivate new patterns of peer provisioning and place-based governance, especially at the local and regional levels. We need new types of infrastructures and new narratives that understand the practical need for open-source civic and economic engagement.

This is not only necessary to help us deal with climate change and inequality; it is a preemptive necessity for fortifying democracy itself. Reactionary forces are already poised to try to restore a pre-pandemic “normal.” “Prepare for the Ultimate Gaslighting,” writes filmmaker Julio Vincent Gambuto in a wonderful essay on Medium.

Gambuto astutely predicts that corporate America, the White House, and the rest of capitalist establishment will soon mount a massive marketing campaign to minimize the realities we’re now experiencing and rebrand the American Dream as back:

Get ready, my friends. What is about to be unleashed on American society will be the greatest campaign ever created to get you to feel normal again. It will come from brands, it will come from government, it will even come from each other, and it will come from the left and from the right. We will do anything, spend anything, believe anything, just so we can take away how horribly uncomfortable all this feels.

And on top of that, just to turn the screw that much more, will be the one effort that’s even greater: the all-out blitz to make you believe you never saw what you saw. The air wasn’t really cleaner; those images were fake. The hospitals weren’t really a war one; those stories were hyperbole. The numbers were not that high; the press is lying. You didn’t see people in masks standing in the rain risking their lives to vote. Not in America…. But you did. You are not crazy, my friends. And so we are about to be gaslit in a truly unprecedented way.

Put another way, economists Samuel Bowles and Wendy Carlin foresee what they call “the coming battle for the COVID-19 narrative.” In a paper by that title on Vox CEPR Policy Portal, Bowles and Carlin declare the coronavirus to be “a blow to self-interest as a value orientation and laissez-faire as a policy paradigm, both already reeling amid mounting public concerns about climate change.”

They predict that a struggle will soon be underway to lock in the political and economic lessons of the pandemic. There will be a big push for a state-friendly, capitalist-affirming narrative, of course. But that frame will narrow the debate to familiar binary choice of “liberal” vs. “conservative” policy, subtly foreclosing consideration of larger structural reforms or a paradigm shift. We will need only ask ourselves, Do we want a bigger, more active government or free markets (sic)?

Fortunately, the pandemic supplies plentiful evidence to support a more ambitious, breakthrough agenda. The Commons Sector and all sorts of alt-economy approaches, long hovering on the progressive fringe, are now bursting out into mainstream view. Makerspaces have stepped up to make personal protective equipment using 3D printers. The City of Amsterdam has embraced Kate Raworth’s “Doughnut Economics” framework. All sorts of localized commons – for food, social support, emergency responses, etc. – are flourishing through people-powered ingenuity and goodwill. Thanks to the pandemic, once-fringe ideas (universal basic income, wealth taxes, relocalizing supply chains) are seen as practical if not essential options.

Bowles and Carlin argue that the pandemic calls into question the very language of economics and public policy. It is now clear that neither market contracts nor government edicts are capable of solving this and future pandemics. In addition, they argue, a “market vs. state” framing of future possibilities fails to acknowledge what the pandemic is showing — “the contribution of social norms and of institutions that are neither government nor markets – like families, relationships within firms, and community organisations.”

For example, 750,000 ordinary Brits volunteered to help the National Health Service in dealing with the pandemic (only 250,000 could be practically put to work). Among South Koreans, there was a huge outpouring of social cooperation to get tested for the virus. One might also add to these examples the remarkable mutual aid projects that have spontaneously arisen worldwide, as chronicled by George Monbiot in The Guardian.

The pandemic has demonstrated that old systems are broken (and were always broken). But many people, including progressives and political parties, are still not willing to recognize this reality. They can’t quite admit that new institutional forms and social behaviors are entirely possible on a systemic, ongoing basis.

Rather than backslide into the old, familiar ideological mindsets, it’s vital that we stride into the new spaces that have opened up! If you look carefully to the outskirts of mainstream politics and policy – to the many “new economy” experiments underway – you can see the lineaments of a new order. There is a huge constellation of promising experiments and proven archetypes. What they share in common beyond non-capitalist organizational forms is their invisibility on MSNBC, CNN, and among many progressive NGOs.

It’s hard to acknowledge that bottom-up social energies can and do work, that there are developed alternatives awaiting expansion and refinement. These models don’t resemble markets or bureaucracies, however, which is surely one reason they have been marginalized. They are emergent, situation-based social phenomena. They can’t be strictly controlled from the top-down, which may be why traditional power centers are so wary of them. They have a quasi-sovereignty of their own that stems from being grounded in a geography, with real grassroots players, who work together as a living, peer-organized, evolving force. This is precisely why they can accomplish so much serious work so quickly and flexibly, as pandemic mutual-aid initiatives have shown.

As renegade economists, Bowles and Carlin appreciate the limits of markets and the state:

Neither government officials nor private owners and managers of firms know enough to write incentive-based enforceable contracts or government fiats to implement optimal social distancing, surveillance, or deployment of resources to the health sector, including to vaccine development….

[N]on-governmental and nonmarket solutions may actually contribute to mitigating problems that are poorly addressed by contract or fiat. The behavioral economics revolution makes it clear that people – far from the individualistic and amoral representation in conventional economics – are capable of extraordinary levels of cooperation based on ethical values and other regarded preferences.

Bowles and Carlin don’t really explore HOW to foster new forms of collective social action, however, or what specific ones ought to be embraced. Perhaps they are not so familiar with the world of commoning and the impressive variety of “new economy” projects.

It is precisely this cohort of players who hold answers for the future. I’m talking about people who are pioneering the relocalization of food and place-based markets, new types of cooperatives, platform cooperatives in digital spaces, non-capitalist forms of finance, degrowth strategies, digital peer production, globally shared design (open source style) used to manufacture locally, agroecology and permaculture, urban commons, and countless other projects that point beyond capitalism and state bureaucracy.

A rare historical moment has opened up new possibilities. We can’t let it be wasted. We need to support an aggressive surge of institutional innovation, relationship-building and meme-spreading along with the development of new grand narratives and collaborative strategies. In a future post, I will look at some of the intriguing new institutional forms that are emerging in specific sectors.

Lead image: by Prachatai.

The post Let the Institutional Innovation Begin! (Part I) appeared first on P2P Foundation.

“Where will the government find the money?” is no longer a valid objection to providing an economic safety net for the people. The government can find the money in the same place it just found more than $5 trillion for Wall Street and Corporate America: the central bank can print it. In an April 9 post commenting on the $1.77 trillion handed to Wall Street under the CARES Act, Wolf Richter observed, “If the Fed had sent that $1.77 Trillion to the 130 million households in the US, each household would have received $13,600. But no, this was helicopter money exclusively for Wall Street and for asset holders.”

“Helicopter money” – money simply issued by the central bank and injected into the economy – could be used in many ways, including building infrastructure, capitalizing a national infrastructure and development bank, providing free state university tuition, or funding Medicare, social security, or a universal basic income. In the current crisis, in which a government-mandated shutdown has left households more vulnerable than at any time since the Great Depression, a UBI seems the most direct and efficient way to get money to everyone who needs it. But critics argue that it will just trigger inflation and collapse the dollar. As gold proponent Mike Maloney complained on an April 16 podcast:

Typing extra digits into computers does not make us wealthy. If this insane theory of printing money for almost everyone on a permanent basis takes hold, the value of the dollars in your purse or pocketbook will … just continue to erode …. I just want someone to explain to me how this is going to work.

Having done quite a bit of study on that, I thought I would take on the challenge. Here is how and why a central bank-financed UBI can work without eroding the dollar.

In a Debt-Based System, the Consumer Economy Is Chronically Short of Money

First, some basics of modern money. We do not have a fixed and stable money system. We have a credit system, in which money is created and destroyed by banks every day. Money is created as a deposit when the bank makes a loan and is extinguished when the loan is repaid, as explained in detail by the Bank of England here. When fewer loans are being created than are being repaid, the money supply shrinks, a phenomenon called “debt deflation.” Deflation then triggers recession and depression. The term “helicopter money” was coined to describe the cure for that much-feared syndrome. Economist Milton Friedman said it was easy to cure a deflation: just print money and rain it down from helicopters on the people.

Our money supply is in a chronic state of deflation, due to the way money comes into existence. Banks create the principal but not the interest needed to repay their loans, so more money is always owed back than was created in the original loans. Thus debt always grows faster than the money supply, as can be seen in this chart from WorkableEconomics.com:

When the debt burden grow so large that borrowers cannot take on more, they pay down old loans without taking out new ones and the money supply shrinks or deflates.

Critics of this “debt virus” theory say the gap between debt and the money available to repay can be filled through the “velocity of money.” Debts are repaid over time, and if the payments received collectively by the lenders are spent back into the economy, they are collectively available to the debtors to pay their next monthly balances. (See a fuller explanation here.) The flaw in this argument is that money created as a loan is extinguished on repayment and is not available to be spent back into the economy. Repayment zeros out the debit by which it was created, and the money just disappears.

Another problem with the “velocity of money” argument is that lenders don’t typically spend their profits back into the consumer economy. In fact, we have two economies – the consumer/producer economy where goods and services are produced and traded, and the financialized economy where money chases “yields” without producing new goods and services. The financialized economy is essentially a parasite on the real economy, and it now contains most of the money in the system. In an unwritten policy called the “Fed put”, the central bank routinely manipulates the money supply to prop up financial markets. That means corporate owners and investors can make more and faster money in the financialized economy than by investing in workers and equipment. Bankers, investors and other “savers” put their money in stocks and bonds, hide it in offshore tax havens, send it abroad, or just keep it in cash. At the end of 2018, US corporations were sitting on $1.7 trillion in cash, and 70% of $100 bills were held overseas.

Meanwhile the producer/consumer economy is left with insufficient investment and insufficient demand. According to a July 2017 paper from the Roosevelt Institute called “What Recovery? The Case for Continued Expansionary Policy at the Fed”:

GDP remains well below both the long-run trend and the level predicted by forecasters a decade ago. In 2016, real per capita GDP was 10% below the Congressional Budget Office’s (CBO) 2006 forecast, and shows no signs of returning to the predicted level.

The report showed that the most likely explanation for this lackluster growth was inadequate demand. Wages were stagnant; and before producers would produce, they needed customers knocking on their doors.

In ancient Mesopotamia, the gap between debt and the money available to repay it was corrected with periodic debt “jubilees” – forgiveness of loans that wiped the slate clean. But today the lenders are not kings and temples. They are private bankers who don’t engage in debt forgiveness because their mandate is to maximize shareholder profits, and because by doing so they would risk insolvency themselves. But there is another way to avoid the debt gap, and that is by filling it with regular injections of new debt-free money.

How Much Money Needs to Be Injected to Stabilize the Money Supply?

The mandated shutdown from the coronavirus has exacerbated the debt crisis, but the economy was suffering from an unprecedented buildup of debt well before that. A UBI would address the gap between consumer debt and the money available to repay it; but there are equivalent gaps for business debt, federal debt, and state and municipal debt, leaving room for quite a bit of helicopter money before debt deflation would turn into inflation.

Looking just at the consumer debt gap, in 2019 80% of US households had to borrow to meet expenses. See this chart provided by Lance Roberts in an April 2019 article on Seeking Alpha:

After the 2008 financial crisis, income and debt combined were not sufficient to fill the gap. By April 2019, about one-third of student loans and car loans were defaulting or had already defaulted. The predictable result was a growing wave of personal bankruptcies, bank bankruptcies, and debt deflation.

Roberts showed in a second chart that by 2019, the gap between annual real disposable income and the cost of living was over $15,000 per person, and the annual deficit that could not be filled even by borrowing was over $3,200:

Assume, then, a national dividend dropped directly into people’s bank accounts of $1,200 per month or $14,200 per year. This would come close to the average $15,000 needed to fill the gap between real disposable income and the cost of living. If the 80% of recipients needing to borrow to meet expenses used the money to repay their consumer debts (credit cards, student debt, medical bills, etc.), that money would void out debt and disappear. These loan repayments (or some of them) could be made mandatory and automatic. The other 20% of recipients, who don’t need to borrow to meet expenses, would not need their national dividends for that purpose either. Most would save it or invest it in non-consumer markets. And the money that was actually spent on consumer goods and services would help fill the 10% gap between real and potential GDP, allowing supply to rise with demand, keeping prices stable. The end result would be no net increase in the consumer price index.

The current economic shutdown will necessarily result in shortages, and the prices of those commodities can be expected to inflate; but it won’t be the result of “demand/pull” inflation triggered by helicopter money. It will be “cost/push” inflation from factory closures, supply disruptions, and increased business costs.

International Precedents

Critics of central bank money injections point to the notorious hyperinflations of history – in Weimar Germany, Zimbabwe, Venezuela, etc. These disasters, however, were not caused by government money-printing to stimulate the economy. According to Prof. Michael Hudson, who has studied the question extensively, “Every hyperinflation in history has been caused by foreign debt service collapsing the exchange rate. The problem almost always has resulted from wartime foreign currency strains, not domestic spending.”

For contemporary examples of governments injecting new money to fund domestic growth, we can look to China and Japan. In the last two decades, China’s M2 money supply grew from 11 trillion yuan to 194 trillion yuan, a nearly 1,800% increase. Yet the average inflation rate of its Consumer Price Index hovered between 2% and 3% during that period. The flood of money injected into the economy did not trigger an inflationary crisis because China’s GDP grew at the same fast clip, allowing supply and demand to rise together. Another factor was the Chinese propensity to save. As incomes went up, the percent of income spent on goods and services went down.

In Japan, the massive stimulus programs called “Abenomics” have been funded through bond purchases by the Japanese central bank. The Bank of Japan has now “monetized” nearly half the government’s debt, injecting new money into the economy by purchasing government bonds with yen created on the bank’s books. If the US Fed did that, it would own $12 trillion in US government bonds, over three times the $3.6 trillion in Treasury debt it holds now. Yet Japan’s inflation rate remains stubbornly below the BOJ’s 2% target. Deflation continues to be a greater concern in Japan than inflation, despite unprecedented debt monetization by its central bank.

UBI and Fears of the “Nanny State”

Wary critics warn that a UBI is the road to totalitarianism, the “cashless society,” dependence on the “nanny state,” and mandatory digital IDs. But none of those outcomes need accompany a UBI. It does not make people dependent on the government, so long as they can work. It is just supplementary income, similar to the dividends investors get from their stocks. A UBI does not make people lazy, as numerous studies have shown. To the contrary, they become more productive than without it. And a UBI does not mean cash would be eliminated. Over 90% of the money supply is already digital. UBI payments can be distributed digitally without changing the system we have.

A UBI can serve the goals both of fiscal policy, providing a vital safety net for citizens in desperate times, and of monetary policy, by stabilizing the money supply. The consumer/producer economy actually needs regular injections of helicopter money to remain sustainable, stimulate economic productivity, and avoid deflationary recessions.

Republished from EllenBrown.com

The post A Universal Basic Income Is Essential and Will Work appeared first on P2P Foundation.

As the pandemic forces us into lockdown, activists across Europe demonstrate that there are still ways to organize and practice solidarity at a safe social distance.

The coronavirus pandemic is confronting us with unprecedented contradictions. The foundations of neoliberal capitalism are crumbling before our eyes, as governments in the EU are taking control over their economies in ways that would have been unthinkable just a few weeks ago. Restrictions on public spending have been lifted, private hospitals are being nationalized, wages are being temporarily covered by the state and universal basic income schemes are being drafted. At the same time, states are also implementing draconian emergency measures to restrict and monitor our mobility, which we cannot rightly oppose out of fear of spreading the virus.

This leaves the left in the predicament of having a unique opportunity to force a rapid transformation of our capitalist system yet lacking any way to do so through collective mobilization. Many of us have been left disoriented by this situation, not least because we have to reorganize our everyday lives on top of figuring out how to stay politically engaged. Across Europe, activists are already hard at work to find ways of organizing collective action even under conditions of lockdown.

NO SPACE TO MANEUVER?

Countries across Europe have implemented measures banning gatherings of more than a handful of people and many have mandated outright curfews that restrict any movement besides commuting to work and buying groceries. Most countries have also closed their borders — including the EU itself — halting international travel and migration completely. Certainly, many of these restrictions are necessary to prevent the further spread of COVID-19. However, they also carry the severe danger of permanently restraining our rights and curtailing our ability to mobilize political opposition.

When the immediate danger of the pandemic has passed, we now face a dual threat of either returning to the same neoliberal order that led us into this crisis, or seeing these “states of emergency” turn into permanent forms of authoritarian state capitalism.

This transformation is already underway. Hungary has effectively become a dictatorship, as Viktor Orbán received carte blanche to rule by executive decree for as long as he wishes to. In Austria, the government has adopted cellphone tracking as a new surveillance practice to monitor the population. Many countries have introduced harsh punishments for curfew violations. The Danish government was only narrowly prevented by the far-left and liberal parliamentary factions from giving police the right to force entry into the homes of people suspected of infection.

There will also almost certainly be concerted efforts across the EU to keep heightened border security measures in place in order to further restrict the movement of migrants and diminish the ability of asylum seekers to enter Europe.

These developments are highly alarming. Without minimizing the need for social distancing, we should be very worried about the descent into authoritarianism unfolding around us. The fact that governments are acting out of a genuine need to cope with the threat of a global pandemic does not make their measures any less undemocratic. In fact, authoritarianism is quite often the reaction of a government fearing a loss of control during a phase of heightened uncertainty, such as an economic or political crisis.

However, such a loss of control is usually the result of growing social resistance against the government’s rule, which is not the situation we are in today. Most governments are not threatened by any major social mobilizations in addition to the pandemic, so their implementation of authoritarian measures does not run into immediate opposition. Indeed, the need for social distancing prevents most forms of political mobilization, forcing activists around Europe to innovate.

FROM PROTESTS TO PODCASTS

Physical meetings and actions are largely out of the question at the moment. Some countries still permit demonstrations but these are quickly shut down if people do not keep a minimum distance from each other. Activists have therefore switched to digital communication and begun organizing political events online.

Housing movements originally planned to coordinate public actions across Europe for an international Housing Action Day on March 28. Instead of just canceling the event, they proceeded to protest from their individual balconies and windows, making noise and putting up banners. A day later German activists protested against the EU’s treatment of refugees by simulating an entire demonstration online, advising people to flood the social media feeds of various public institutions that they “passed” along their “route.”

The climate movement Fridays for Future has shifted its weekly climate strikes online as well, sending millions of pictures and political demands across social media platforms. Activist from the movement have also started hosting the online show Talks for Future, where they engage in discussions with academic experts. Indeed, a whole congregation of activist groups and critical think tanks have taken this opportunity to start hosting their own podcasts and livestreaming political debates. On a more day-to-day basis, community organizers across Europe have shifted their consultation services to phone conversations and email.

This transition to online activism is certainly borne out of necessity rather than proactive political choice, but it can provide us with some important long-term benefits. For large sections of the left, particularly political parties and critical academics, the decision to invest more time and energy into their online presentation has been long overdue. Social distancing has effectively forced their hand to catch up with how most — especially young — people are already consuming media.

This is even more true under the current lockdown conditions, as almost everyone is forced to spend much more time at home — and therefore online. There is a good chance that this may lead to a heightened politicization across civil society, which makes it essential that the left is able to reach this captive audience. By making full use of the accessibility and flexibility of online activism, the left may expand the reach of progressive messages and quickly build up larger networks. At the same time, it needs to be aware and critical of the heightened surveillance risks posed by online platforms like Zoom and work towards building its own alternative online infrastructures.

SOLIDARITY AND THE COMMONS

Not all forms of activism can be done online, however. The current crisis highlights the urgent need for local mutual solidarity, not only to protect the most vulnerable communities but also to lay the foundation for the commons-based socioeconomic alternative that we so desperately need.

Local solidarity networks have provided mutual aid during humanitarian crises in the past and many continue to do so now. In Greece, activists have built a huge network of solidarity initiatives due to years of austerity and many of them are now organizing the distribution of food and other supplies to precarious communities under curfew conditions by sending individual volunteers to shop for whole neighborhoods. This practice can be easily adopted anywhere else in Europe and could alleviate the strain on those who are less financially secure or mobile to sustain themselves. Solidarity with asylum seekers is particularly urgent, especially in the context of refugee camps whose conditions are quickly deteriorating. On the Greek island of Lesbos, medical volunteers are working around the clock to provide aid and stem the spread of COVID-19 among the refugees trapped in the camp.

But vulnerable groups require urgent help also in the urban centers of northern Europe. In Berlin, activists have been occupying empty apartments and turning them into improvised squats for the homeless population, while carefully abiding by medical safety conditions. Across the continent, there is also increasing domestic violence against women who are now forced to stay at home with abusive partners. Because of this, women’s shelters continue to operate, albeit under strict sanitary conditions, and volunteers of anti-violence networks offer to hold consultations in person in case of emergencies.

These forms of solidarity work have to continue not despite, but because of the pandemic. Mutual solidarity, so long as it is provided under careful sanitary conditions, is a crucial way to support vulnerable and marginalized social groups for whom the virus and lack of mobility create existential threats. By creating local support networks, we can also continue engaging in political activism at a grassroots level, in a way that raises both the security and political consciousness of our communities.

The mutual ties we are now forging through neighborhood solidarity can be a basis for future collective mobilization, as well as convince people of the possibility of enacting more transformative political and economic changes. Since the sheer lethality of the globalized market economy and austerity politics is more obvious than at any other time in recent memory — at least in Europe — the left needs to double down on its struggle for a commons-based alternative. By making it obvious to everyone that local community-based solidarity is capable of helping us through this crisis, we can build a solid foundation for our struggle for the commons.

STRUGGLES FOR REDISTRIBUTION

Since the pandemic is deeply intertwined with a crisis of capitalist reproduction, we are already seeing new waves of redistributive struggles, which will only become more forceful as the economic crisis unfolds.

Many companies and public institutions still expect their employees to show up for work, especially in sectors that are deemed systemically essential like transportation, retail or public security. The increasingly unsafe working conditions in these areas have sparked a number of new labor struggles, even without the opportunity for collective mobilization.

Italian unions have called a general strike because multiple sectors are forced to continue operating even after the government initiated an economic shutdown. Amazon has been hit with labor protests due to the retailer’s reckless endangerment of workers by forcing them to work with minimum safety protection. French unions have announced a month-long strike notice for the public sector in order to protest the government’s “anti-social” relaxation of labor conditions under the guise of fighting the pandemic.

Tenants unions have called for an international rent strike to suspend living costs for people whose income has been compromised by the lockdown. These struggles are still few and far between, as many workers and employees have been sent into home office, temporary leave, or were laid off entirely. The conditions for labor mobilization will continue to be difficult, as the imminent threat of economic collapse and rapidly increasing unemployment will put workers under great financial pressure.

Nevertheless, there are reasons to be hopeful. The current crisis is radically changing our perception of which forms of labor are relevant for societal reproduction and which are not. Formerly undervalued professions like retail employees, delivery drivers and transport workers have transitioned from being labeled as “unskilled labor” to being “essential” to the survival of society. Healthcare staff in particular are increasingly regarded as playing an outright heroic role and their working conditions have become a central political talking point.

This experience of being indispensable for the survival of society will undoubtedly boost the collective class consciousness of people working in these sectors, which can greatly strengthen their ability to organize. So far, the public’s appreciation for these professions has been mostly limited to symbolic gestures like collective applause, but the underlying shift in collective consciousness can be the foundation for long-term solidarity.

Similarly, the fact that many families now have to home-school their children may increase people’s respect for educational staff and childcare employees. Although there is little reason to believe that the lockdowns are contributing to a more equal redistribution of gendered house and care work, the experience alone can provide additional fuel for future feminist struggles for collectivized social reproduction.

PREPARING FOR WHAT LIES AHEAD

In a few months, when hopefully the imminent threat of the pandemic subsides and we are hit by the full force of the economic crisis, the struggle for how to reorganize our political, social and economic systems will take center stage. As grim as the situation is, this provides us with a unique opportunity to fight for a fundamental emancipatory alternative. With the existential threat of neoliberal capitalism being more evident than ever before, the European public is growing aware of the need for a massive expansion of social protection, collective control over the economy and the reorganization of labor.

As hundreds of billions of Euros are pumped into the failing economy, there is an opportunity to force companies to abide by new social and ecological standards and hand more democratic control to their employees. Governments can also take this a step further and transfer the companies’ ownership into public hands entirely, which would finally allow us to initiate a transition towards the more socially equitable and ecologically sustainable economy that we desperately need. We now have proof that such a radical transformation is entirely feasible and only depends on the political will to make it happen.

For such a progressive change to become a reality, the left needs to hit the ground running. As soon as lockdown conditions are lifted, we need to organize broad social mobilizations, engage in struggles for redistribution and eventually achieve decisive political shifts in government.

We need to use the current phase to prepare for these struggles. Online activism can enable us to expand our networks and reach new audiences. Local solidarity can alleviate the worst impact of the pandemic and get new people engaged in a movement for collective social and economic reproduction. And by relying on the newfound structural power and public solidarity of “essential workers” we can put pressure on companies and governments to implement changes they would have never agreed to before.

As people across Europe are already demonstrating, we can do all of these things at a safe social distance. Even under quarantine, we can continue to fight capitalism.

The post Organizing under lockdown: online activism, local solidarity appeared first on P2P Foundation.