the briar-wire

Squeezing the American Dream

A review of The Big Squeeze: Tough times for the American worker

By Nicholas von Hoffman, Truthdig
June 9, 2008
http://www.alternet.org/story/87405/

You may be surprised to learn that the pleasant person from FedEx Ground delivering your package owns the truck which he or she has parked in front of your house. FedEx Ground drivers, you will find out in Steven Greenhouse’s The Big Squeeze: Tough Times for the American Worker, are not FedEx employees.

They are what are called independent contractors, although it demands no little effort to discern what about their position is independent. If they do not do what they are told, their contracts are abrogated forthwith. They are required to buy their own truck with 60 monthly installments of $781.12, which comes to $46,867.20. Plus there is a final kicker payment of $8,000, all of which adds up to a grand total of almost $55,000. On top of this, as an independent business person, the driver must bear the costs of insurance, maintenance, fuel, repairs and the fee for the FedEx uniform rental.

FedEx Ground drivers who want to take vacations must hire their own replacements to cover the routes while they are gone. If a FedEx Ground independent contractor can afford it, he should take a vacation because the hours are long, the work is hard and the compensation is less than princely. A driver will take home between $25,000 and $35,000 a year.

One of the strengths of Greenhouse’s book is that it puts the meat of specificity on the bones of labor statistics. The Big Squeeze is salted with interviews and biographies of people in dozens of occupations. It is instructive to read the statistics concerning highly trained people losing their jobs to people in low-wage countries, but the numbers take on painful significance when you are introduced to an electrical engineer named Myra Bronstein, working for Watchmark, a Bellevue, Wash., firm which develops software used by cell phone companies.

One day Bronstein and 17 of her colleagues got an e-mail asking them to report to Watchmark’s boardroom the following morning. As Myra and the other quality assurance engineers gathered in the boardroom, the director of human resources began giving out large manila envelopes. Once everyone was there, Myra recalled, “The head of HR said, ‘Unfortunately, we’re having layoffs, and you’re in the room because you’re being impacted by the layoffs.’” The 18 engineers were dumbstruck, but the head of human resources pressed on. “‘Your replacements,’” she continued, “‘are flying in from India, and you’re expected to train them if you are going to receive severance.’”

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Ardoch Algonquin First Nation
May 15, 2008 - For Immediate Release

On February 15, 2008 Ardoch Algonquin First Nation (AAFN) Spokesperson Robert Lovelace was sentenced in the Ontario Superior Court of Justice in Kingston to 6 months in maximum security, plus crippling fines, for peacefully protesting uranium mining in the Ardoch homeland. Chief Paula Sherman was fined $15,000 and given until today to pay the fine, failing which she will be jailed.

On March 17, a Superior Court judge in Thunder Bay sentenced six leaders of the Kitchenuhmaykoosib Inninuwug (KI) to six months after they were found in contempt of court in a dispute which is virtually identical to that of the Ardoch Algonquins.

The jailing of respected, law-abiding community leaders has had a devastating impact on our communities, particularly on the families of those incarcerated. The indifference shown by the McGuinty government towards the rights of First Nation communities and the imposition of long jail terms and crippling fines in the name of “the rule of law” has further eroded respect for both the legal system and the government of Ontario in the eyes of First Nations people in this province.

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The slice-of-life radio documentary show This American Life has just put out a show on the U.S. housing/credit crisis. TIL does an excellent job of teasing out the complex causes and devastating consequences of the subprime disaster.

(May 4th, 2008) Eight days ago, on Friday, April 25th, 2008, my husband, Shawn Brant, was arrested and detained on assault and weapons charges. Since that time, Commissioner Julian Fantino and the Ontario Provincial Police have issued public statements that have, it seems, misstated the events leading to my husband’s arrest.

I believe it is important to the public good for people to understand the circumstances that have lead to Shawn’s incarceration at this time. Those circumstances are as follows:

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We need a national white-collar crime system that can take on finance bigwigs and hold them accountable.

by Ken Georgetti
Rabble.ca
April 30, 2008

In recent months, as U.S. hedge funds have imploded south of the border, working Canadians have been told our economy isn’t “subprimed.”

Sure, the experts say, current problems in global credit markets may mean less cash is available for Canadian companies. It will certainly mean fewer buyers for Canadian exports as U.S. workers face house foreclosures and higher costs for basic necessities.

But be thankful, the experts reassure, you could be someone else. You could be one of the two million Americans who recently lost their homes after shady mortgage brokers sold them on crooked contracts.

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By Nick Dearden
Counterpunch.org

In recent weeks, Haiti has been gripped by violent protest yet again. And yet again the inhabitants of this impoverished country are suffering the most brutal consequences of the fallout of the global economic crisis. This time it is the rise in global food prices, which has sparked riots in Port au Prince, Haiti’s capital, where UN peacekeepers used rubber bullets and tear gas against protesters attempting to storm the presidential palace. Days later the prime minister was fired.

It is therefore particularly appropriate that on Tuesday this week -the anniversary of the death of Haiti’s dictator, Francois “Papa Doc” Duvalier - hundreds of debt campaigners fasted for Haiti’s debt to be cancelled. Haiti’s fate has been tied up with the issue of international debt more than any other country. Despite the fact that its debt is illegitimate by any standards and despite Haiti’s sorry position as the poorest country in the western hemisphere, it still owes $1.3bn. Every year debt repayments flow from Haiti to multilateral banks, just as its resources once enriched the French empire.

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Stretched buyers fuel boom in housing: Engine behind the country’s housing boom has been increasingly leveraged first-time buyers

By Tavia Grant
Globe and Mail
April 23, 2008

Canada may not have the sizable subprime market of the U.S., but the engine behind the country’s housing boom has been increasingly leveraged first-time buyers.

Legions of first-timers are adding years of extra mortgage payments so they can buy a house, or putting little or no money into a down payment, a Re/Max survey revealed yesterday. Nearly two-thirds of buyers in major centres now favour extended amortization periods of up to 40 years, while putting little or no money down was prevalent in 38 per cent of regional markets surveyed across Canada.

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By Daniel Tencer
MediaScout

An easily overlooked article, buried in today’s La Presse and the Star, suggests that the human race came within a whisker of extinction seventy thousand years ago, when the homo sapiens population may have dropped to as few as two thousand people. That should give us pause for thought as we look at today’s news cycle, which is, almost without exception, focused on the apparently sudden arrival of serious problems with our supply of two basic necessities: food and energy. CIBC economist Jeff Rubin is all over last night’s broadcasts and today’s papers, announcing that we can expect a serious shock at the pumps: By this summer, Rubin says, we’ll be paying $1.40 per litre of gas, and that will rise to $2.25 per litre over the next several years, bringing the cost of an average tank of gas to around $100. And, in a not unrelated story, Canadians can soon expect to pay considerably more for basic foodstuffs as well, as grain prices (and therefore, by extension, meat prices) soar over the next few years. The two issues come down to a basic problem that is at the heart of all economics, but one that we, in our age of affluence and seemingly endless economic growth, have mostly forgotten about: scarcity. As developing nations become wealthier, the demand for food and energy rises, while the supply remains stagnant. That is what is happening, and the result appears to be a return to an us-or-them, zero-sum mentality. As Rubin told The National last night: “For every new driver who gets on the road in India or China or Russia, someone’s got to get off the road in [our] part of the world.”

In all fairness, we could have seen this coming. Economists and academics have been warning us for years that oil supplies are peaking, and will begin to decline, and that increasing demand for food will put pressure on the planet’s ability to sustain the human race. The predictions of social unrest and war arising from the problem of scarcity continue to be ignored, even as food riots break out in poor countries and the US continues to fight a war in the middle of the world’s largest oil pool. What is conspicuously absent from the Big Seven’s coverage of this issue today is any discussion as to how to solve these problems. There are few questions posed on how to increase food production, no discussion of alternative energy sources. Yet it is becoming increasingly obvious that, if we want to maintain our standard of living, then finding alternatives to fossil fuels and reforming the creaky, at times senseless structure of global agricultural trade can no longer be treated as political footballs to be accepted or rejected-they have to be seen, quite literally, as matters of survival. If we fail to rise to the challenge, then nature itself will no doubt provide a draconian solution. As an example, take another lesson from pre-history in today’s news cycle, an item in The National (not available online) and the Star regarding the fate of the king of the dinosaurs, the tyrannosaurus rex. New genetic evidence suggests that, when conditions became unfavourable for the enormous creature, the t-rex evolved into something more manageable-the everyday barnyard chicken, and the ostrich, to be precise. If we fail to address the problems facing us now, nature could reduce us, too, to a species that is less demanding.

FULL ARTICLE

By De Clarke and Stan Goff
CounterPunch.org

“The Food Underground is already here. It has been invisible to many of us, because our eyes were fixed on ‘higher’ ideological struggles, while the basis of effective counter-ideology — skill and design — quietly passed us by. It is time to change that. Political resisters need to learn and apply the skills and designs of the food underground; and the food underground needs deeper, more focused and intentional politicization.”

In recent days, we have seen the rising price of oil and the devaluation of the dollar create two quantum shifts in the economy: the beginning of the collapse of the air travel industry and a global crisis of food-price inflation. These are related in ways that are crucial to understand — because we are seeing the outlines of an historic opportunity to change the terms of theory and practice for a politics of resistance. As air carriers have gone bankrupt, the knock-on effects on travel agents, airports, airport-colocated hotels, “package” vacation resorts, etc. are considerable.

This is how one cascade pours into another, as the manifold contradictions of our global system merge and co-amplify. Tourism, which was supposed to be a relatively benign, non-extractive industry for colonized nations — an alternative to brutal extraction and cash cropping — turns out to have been just as extractive all along due to the climate (and cultural) damage done by commodified air travel.

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By John W. Warnock
Leader Post

In early April, the international price for WTI crude rose to $110 per barrel. The price of gasoline was $1.23 for a litre. Both have since risen even higher. Oil corporations are reporting record profits. Land sales for exploration and development rights for oil are at an all-time high in Saskatchewan.

What’s happening?

At a recent conference in Washington sponsored by the U.S. Department of Energy, experts argued that the world production of conventional crude oil peaked in May 2005 at 74 million barrels a day. The gap to the current production level of 88 million barrels a day is now being filled by much more expensive and difficult to access non-conventional sources.

Of the remaining oil reserves, 77 per cent are controlled by producing countries with state-owned national oil companies (NOCs) where the privately owned international oil companies (IOCs) are excluded. Another 11 per cent of reserves are in countries with NOCs where the private companies have some access through production sharing agreements. Russia has six per cent of the remaining reserves and is re-establishing state-ownership and control.

Only seven per cent of the remaining world reserves of crude oil are in countries like Canada, where the IOCs have full access to the resource.

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