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The centrality of externalities to economic understanding

By Brian Davey - Credo, July 31, 2016

What economists call “externalities” are not unusual or a special case, they are ubiquitous. They are rooted in private property and the relationships of market society. The way in which non market societies protect bio-diversity through totem arrangements is described.

Private property means that a single owner has the right to do with a resource as s/he sees fit. However, what they decide about these “resources” affect communities of people and communities of species (eco- systems). Very often, the effects are not positive. John Ruskin, a 19th century art critic who also wrote on economics, coined the term “illth” to describe the destructive effects imposed on society and the environment by the economy of his day.

Economists have had to adjust their theories and have come up with the concept of “externalities”, that is, the benefits or costs of an allocation decision that arise for non-owners. In a later chapter I critically examine the idea that these externalities can be managed by those people affected by them coming to a deal with those causing them. This would involve finding “the right price” for the externality and then doing a trade. The purpose of this chapter is to look at the institutional and property relationship contexts in which these “externalities” arise, and thus, to show how and why, in some kinds of society, there are no “externalities”.

The word “externality”, conveys the impression that this is a footnote to economic theory, a sort of additional point. Actually, externalities are ubiquitous. There cannot be any kind of resource allocation decision involving matter or energy without externalities. “The economy” is embodied and embedded in physical and energetic processes in the physical world.

It involves “stuff” processed by energy conversions. This stuff, the matter, can neither be created nor destroyed, though it can change its form. Likewise, energy changes its form when used. It follows from this that what are used as “economic resources” must have come from somewhere originally where these resources had an original function and/or were part of some other system or structure. These resources must also go somewhere after they are embodied in products and/or where they are wholly or partly turned into wastes. Extracting resources from places has consequences and dumping wastes and pollution has consequences. Over several centuries, this extraction and dumping has usually been out of, and back, into the commons.

Venezuelan Social Movements Converge on Supreme Court, Demand Injunction Against Mining Arc

By Lucas Koerner - Venezuela Analysis, June 5, 2016

Caracas, June 5, 2016 (venezuelanalysis.com) – Activists from grassroots organizations protested outside the Venezuelan Supreme Court Tuesday to demand that the body put a halt to a controversial mega-mining project spearheaded by the Maduro government.

The demonstration was organized by the Platform for the Nullity of the Mining Arc, an alliance of diverse movements and leading public intellectuals that emerged in response to a law authorizing open-pit mining in 12 percent of the nation’s territory. 

In February, Venezuelan President Nicolas Maduro used emergency economic decree powers granted by the Supreme Court to declare nearly 112 square kilometers of the mineral-rich eastern Amazonian state of Bolivar a “strategic development zone”, which will be opened to as many as 150 national and transnational firms for the extraction of gold, iron, diamonds, and coltan.

The government has defended the initiative as a necessary step towards a post-oil productive economy amid a severe economic crisis triggered by the collapse of global crude prices, the principal source of Venezuela’s foreign currency earnings. 

Nonetheless, the project has sparked vocal opposition from prominent leftist academics and former high officials under late President Hugo Chávez, including ex-Environment Minister Ana Elisa Osorio, internationally-renowned sociologist Edgardo Lander, Major General Cliver Alcala, former Minister of Education and Electricity Hector Navarro, Indigenous University of Tauca Rector Esteban Emilio Mosonyi, ex-Commerce Minister Gustavo Marquez, and former 1999 constitutional assembly member Freddy Gutierrez.

Also raising their voices in outrage over the decree are a plethora of indigenous, environmental, eco-feminist, and socialist collectives, who rallied together with the ex-officials outside the Supreme Court in Caracas in order to deliver a formal nullity plea to the body requesting an injunction against the mining project on constitutional grounds.

A Brief History of Anti-Capitalism, Pulled from a Dumpster

By Alex V. Barnard - Discard Studies, June 6, 2016

“Seeing all the waste exposes very clearly the priorities in our society, that making a profit is more important than feeding people, than preserving the environment, than making use of resources, than honoring peoples’ time, labor, love, and effort. What we see with waste is that once something cannot make money, it is discarded and of no value.”

The denunciation above came from a member of the group “freegan.info,” a group which since 2005 has led “trash tours” through New York City with the aim of exposing and the wealth of waste produced by our food system and—as they claim—capitalism itself. While the freegan group I studied never had more than a dozen members, their evocations of “waste” echo widely across other contemporary movements. At Occupy Wall Street, authorities and activists battled over whether it was the occupiers or the financial system that were a waste of human effort and needed to “clean up” (Bolton, Froese, and Jeffrey 2016; Liboiron 2012). The encampments’ (re)use of waste and refuse, adopted the model of longer-running networks like Food Not Bombs: to repurpose capitalism’s detritus to provide food, housing, and transport for those living, voluntarily or involuntarily, on the margins of market society (Giles 2013; Heynen 2010).

Waste may be particularly symbolically and materially visible in contemporary anti-capitalism, but claims that capitalism is “wasteful” have haunted the economic system from the beginning. What the meaning behind movements’ evocations of “waste,” though, have varied across different capitalist “waste regimes” (Gille 2008): the configuration of modes of producing, representing, and politicizing waste that dominate in a particular historical moment. Only by seeing the long-running but evolving evolving politicization of capitalism’s waste can we see the specificity of how waste is used in contemporary anti-capitalist movements—which, in my new book (Barnard 2016), I describe in terms of the use of “ex-commodities” to challenge a neo-liberal “fetish of waste.”

Toward Democratic Eco-socialism as the Next World System

By Hans Baer - The Next System Project, April 28, 2016

This essay is guided by two imperatives: (1) how do we live in harmony with each other on a fragile planet of limited resources, which have become unevenly distributed; and (2) how do we live in harmony with nature, particularly as humanity lurches forward into an era of potentially catastrophic, anthropogenic climate change that to a large degree is a by-product of the capitalist world system. Social systems, whether they exist at the local, regional, or global levels, do not last forever. Capitalism, as a globalizing political economic system committed to profit making and continual economic growth, has created a treadmill of production and consumption that is heavily dependent upon fossil fuels and has resulted in greenhouse gas emissions that drive climate change.

While capitalism has produced numerous impressive technological innovations, some beneficial and others destructive, which are very unevenly distributed, it is a system fraught with numerous contradictions, including: growing social disparities within most nation-states, authoritarian and militarist practices, depletion of natural resources, environmental degradation, including global warming and associated climatic changes, species extinction, and population growth as a by-product of poverty. Even more so than in earlier stages of capitalism, transnational corporations and their associated bodies, such as the World Bank, the International Monetary Fund, and the World Trade Organization, make or break governments and politicians around the world, although the extent to which this is true varies from country to country. Although capitalism has been around for about 500 years, it manifests so many contradictions that it has become increasingly clear that it must be replaced by a “next system” or an alternative world system—one oriented toward social parity and justice, democratic processes, and environmental sustainability, which includes a safe climate.

Read the report (PDF).

Eco-Socialism and Decentralism

By Wayne Price - Infoshop.org, January 11, 2016

Theorists of the climate-justice movement have been raising decentralist ideas as part of their programs for an ecologically-balanced society. This ecological program means more local democracy, workers’ management of industry, consumer coops, and federations of radically-democratic institutions. Such ideas revive the decentralist ideas of anarchism.

From conservatives and liberals to Marxists, there is faith in big machines, big industries, big corporations, big cities, big countries, big buildings, and big government—a belief in the necessity of centralized, bureaucratic, top-down, socially-alienated, institutions. This is not to say that most people like giant cities, big business, or big government; but they do not see any alternative.

Instead, anarchists have advocated localism, face-to-face direct democracy, self-governing agricultural-industrial communes, workers’ self-management of industry, consumer cooperatives, appropriate technology, and federations and networks of such radically-democratic institutions. Many people reject anarchism because they believe such decentralism to be unrealistic.

However, in our time there is a new development: writers and theorists of the ecology/environmental/climate-justice movement have been raising decentralist concepts as part of their programs. They include moderate liberals, radical ecologists, and even Marxists. Mostly they have no idea that they are redeveloping anarchism. I will examine this phenomenon.

Collapsing the levels, Consolidating Our efforts

By SN Nappalos - Recomposition, December 11, 2015

Recomposition Introduction: Approximately 5 years ago work began on something called the intermediate analysis. A few members of the Recomposition editorial group contributed pieces, worked in groups, and tried to shape their work around the issues raised in the analysis. Between 2010 and today stand a lot of changes and a different landscape for radical action. The maturing of the world financial crisis, series of popular protest movements, and conservative responses have shifted the field from where we stood just a short time ago. Today we present a piece by Scott Nicholas Nappalos exploring what was useful and harmful in the intermediate analysis, and what lessons can be drawn for revolutionary unionists in North America specifically and for the libertarian left more generally. 

The intermediate level first confronted me after the 2004 bicoastal wildcat strike where the Industrial Workers of the World (IWW) had attempted to organize a national coordination of the various autonomous local groups of truckers who have come together. That followed a series of debates within the Portland IWW branch, where I was a member, over the role of revolutionaries in building a union. I began a draft on the intermediate analysis during the period of 2004-2006, but returned to it more seriously a few years later in Miami when things had calmed down and in dialogue with other comrades there. In 2010-2011, I contributed to a series of pieces on the intermediate level as part of group discussions within Miami Autonomy & Solidarity, an anarchist communist political organization I was a member of. These reflections came out of years of rumblings, discussions, and experiments by anarchists trying to find ways to apply their ideas to workplace and community organizing in the North American . Nearly as soon as the words hit the page a series of struggles began to test our ideas; first the Madison protests, then Occupy, and later others.

The three or so years that followed the publishing of pieces on the intermediate level led to more discussion and distribution than anyone likely imagined. In a couple cases other groups consciously adopted the terminology and the debate spread outside North American circles through libertarian networks. In today’s environment of unstable quietness, many are looking around, taking stock, and picking up old debates to help sort out the events of the past years beginning with the crisis in 2008. It’s obvious that there’s been a spate of protests that set the decade apart from the past 30 years, though they’ve remained short-lived and largely localized so far. Vast changes are afoot with sections of the public more open to our politics than any time in recent history, though that hasn’t yet translated into any real sustained advances. Some years and modest experiments behind us, it is a good opportunity to re-evaluate the strategy and analysis.

There is no need to beat the drum and reiterate the arguments bit by bit here, but instead interested folks can look to pieces I wrote: Defining Practice: the intermediate level of organization and struggle[1], the three-part piece called Towards a Theory of Political Organization for our Time[2], and also somewhat related the co-authored article with Adam Weaver Fighting for the Future: The necessity and possibility of national political organization for our time.[3] The quick summary is that there are two frames to the analysis. The first, the intermediate level, is a tool for looking at the social world and categorizing different types of activity to understand them better. The mass level is an idealized space where all the struggles of all the social actors take place like giant unions or community organizations that encompass entire classes. The political level takes place where specific ideologies, strategies, and politics are coordinated in that larger field. The intermediate level is where people come together based on shared strategy and experiences to coordinate their activity within struggles; more broad than the ideological unity of the political level, and more narrow than the mass level it is working within.

The second framing of the analysis deals specifically with intermediate organizations, which is to say organizations that occupied the space roughly between unions and political parties/organizations. Intermediate organizations are ones constructed with distinct tasks from mass or political ones, and unlike the first aspect of the analysis are physically and actively separate. In the first we are talking about activities that can co-exist alongside others in a variety of formats, the second is specific organizations that imperfectly reflect those activities.

The simplest examples of intermediate organizations are tendencies within social movements. These groups organize militants around a shared platform of various sorts to take action within an organization such as a union or community group. This spans from relatively ideologically broad such as Soldiers of Solidarity[4] in the UAW, to groups for action with broader political orientation such as the communist party’s Trade Union Education League and later Trade Union Unity League’s unions[5] or the Unemployed Councils of the Great Depression[6], and overtly political tendencies such as the Federacion Estudiantil Libertaria[7] in Chile today which organizes anarchists on specific proposals for action and demands within the student unions. Many organizing projects however tend to act as intermediate organizations of militants without having another overarching social organization they work within.

Controversially I’d argue that projects of the anarcho-syndicalist variety in fact act like intermediate organizations. Really there’s two ways to look at it: our concept of unions is too narrow, or revolutionary unions/projects represent something altogether different from parties and unions. One way to come at the intermediate level is to question all of this, and say the idea of non-political mass organizations is utopian, they’re inherently involving all levels of activity: political, mass, and intermediate. In one sense the dominant idea of what unions and organizing projects are (for left thinkers anyway) has become incredibly narrow; essentially apolitical groups that try to win demands for the whole of the class or some section of the class.

This scenario is far from universal in fact, because historically it was rarely if ever the case. It has been common for unions to fight around a range of issues from housing, immigration, and the oppression of ethnicities and women with examples in the IWW, FORA, CNT, and FAU but also reformist unions.[8] The meaning of union is interpreted as about the workplace narrowly defined. However in South America, to take an example, unions came out of resistance societies which were unions of workers and proletarians organized around a variety of different collective needs and projects. Resistance societies were a militant off shoot of mutual aid networks that included things like women’s issues, housing, workplace, and political issues that affected the class like militarism, anti-clericalism, immigration, and health. [9][10] This was perhaps always the norm for revolutionary unions, but not unheard of for reformist unions growing out of the environment of working class communities of past generations. Lately SEIU and other recuperative unions have started funding non-workplace organizing with non-members often with the goal of electoral victories, begging the question.

The focus of unions only narrowed in the US with their institutionalization after the NLRA when they became more fully integrated into capitalism. Political and social struggles overlapped with workplace activities, and unions were often grouped around political outlook. Outside the US, most of the world has a parliamentary system for unions where workers choose between them based on their political ideology. Moreover American unions and non-profits are largely ideological organs of the Democratic Party in terms of their activity, funding, and vision. So even today the idea of neutral mass organizations is a bit utopian.

Another way to think about these projects is that certain groups play a special role. They are different from run-of-the-mill unions, community groups, etc. While it’s true all groups are political in some sense, anarcho-syndicalist unions, revolutionary community groups, and solidarity networks have a unique relationship between their ideas and practices. They all use activity to build movement and have a connection between their goals, ideals, and actions in a way that political organizations and more broad unions don’t. In this way maybe they don’t fit neatly into any of the levels and occupy space between them all. Whether we widen the concept of mass organization, or we alter how we understand groups like the IWW, CNT, Solidarity Networks, or other such projects, the outcome is the same in practice. Intermediate organization tried to capture some of that nuance.

Towards a New Anti-Capitalist Politics

By Jerome Roos - ROARMag, December 15, 2015

Humanity finds itself at an inflexion point. On the one hand, global capitalism is producing and aggravating a series of existential crises that may well undermine the very preconditions for a dignified human life—or any form of human life—on this planet. On the other, the only political force that could possibly do something to counter this inexorable drive towards catastrophe—the international left—has long since been run into the ground by a four-decade neoliberal offensive, leaving its social base fragmented and atomized, its organizational structures in tatters.

In the wake of this world-historic defeat, we are confronted on a daily basis with the devastating consequences of our contemporary powerlessness. Far from retreating in the wake of the global financial crisis of 2008-‘09, neoliberalism has intensified its war on democracy and doubled down on the structural violence of austerity and dispossession. Meanwhile, we look on helplessly as wealth and power continue to be concentrated in ever fewer hands, while common goods and public services are mercilessly sacrificed at the altar of the marketplace.

We stand defenseless as high finance and big business mount an all-out offensive against the last-remaining vestiges of the welfare state, while mass surveillance and state control are expanded across the board. We are powerless as barriers to capital are knocked down in secretive trade deals while national borders are militarized and new walls erected everywhere to keep out the unwanted other. We feel paralyzed as families are evicted from their homes, protesters brutalized by police, and the bodies of refugees continue to wash up on our shores.

Amidst the growing uncertainty of a hyper-competitive 24/7 information economy, in which indebtedness, unemployment and precarity are rapidly becoming the generalized conditions of life for the majority, we are overcome by exhaustion, depression and anxiety. At the same time, a sense of existential gloom is settling in as global temperatures and sea levels continue their seemingly unstoppable rise, while planetary life-support systems are being destroyed at a truly terrifying pace.

From Hollywood blockbusters to best-selling books, late-capitalist culture knows all too well how to wax poetics about the collapse of civilization—yet its critics seem to have lost all capacity to imagine even the most moderate reforms to prevent this dystopian fiction from becoming reality.

We may continue to speak of a crisis of capital, but what really confronts us is a crisis of the left.

For all its tragedies and failures, at least the old left was once driven by hopes and visions of a better future. Today, all such aspirations seem to have been abandoned. As Franco ‘Bifo’ Berardi has astutely put it, the future has been cancelled—and the left, unmoored from its post-capitalist imaginary, has been cast hopelessly adrift in the process. In this conjuncture, we may continue to speak of a crisis of capital, but what really confronts us is a crisis of the left.

“Anarcho-capitalism,” “Free Markets,” Jumbo Shrimp, and Other Oxymorons

By A S Goldstein - Tools of Control, December 14, 2015

Lately, I have been having endlessly frustrating debates with people who call themselves “anarcho-capitalists” or “ancaps” and who seem to be stuck in the McCarthy Era as they still view socialism as some kind of “Red Terror.” Ironically, these people are about as fervent in their support of capitalism and their hatred of socialism as the very government they supposedly want to destroy. These debates generally devolve into ad hominem attacks as the people arguing for capitalism tend to lose their cool rather quickly, and like most people they do not want to hear opposing opinions, especially ones supported by facts. I strongly believe in anarchism and autonomy as I believe they are the only foundations for a truly free society, so I have joined many anarchist groups, but it seems like many of the them (in America anyway) are overrun by so-called “ancaps,” which is why I end up having these silly arguments, and it is sad because they don’t understand “anarcho-capitalism” is an oxymoron or a contradiction of terms that are diametrically opposed. People who believe in this contradiction of terms do not understand what anarchism or capitalism is, and so I hope they read this explanation and do their own research, (and read authors that do not just reinforce their own opinions) instead of reacting defensively or reflexively.

Anarchy means a system without rulers. The etymology of the word demonstrates that as its root Greek words are “an” and “arkhos”, which together mean “without ruler.” Yet capitalism inherently has rulers. It puts people with massive capital and monopolies on resources at a much greater advantage over people who don’t have such capital or resources. The super rich also rely on state thugs and governments and their monopoly on violence and force to protect them. In a world without violent governments or police without the ability to use force, there would be no billionaires. Without police and governments that protect the rich and powerful, there is no way common people would allow a handful of incredibly greedy, misanthropic individuals to hoard billions while 80% of the world lives on less than $10 a day. Capitalist managers rely on cops to break worker strikes and quell worker dissent, they rely on state armies to secure resources, and they rely on government subsidies, tax breaks, bailouts, and bribes to politicians and judges for legislation that favors them.

“Ancaps” remind me of these Ron Paul “libertarians” who misunderstand libertarianism and anarchy as meaning a system with no rules where they think their freedom is defined by how much they can hoard and how much they can disregard other people’s rights and freedoms. But our freedom is not defined by how much we can take away the freedom of others. That is a zero sum equation (as is capitalism) and not true freedom. In this system, one person’s loss is always another person’s gain. For example, the loss of someone’s house due to foreclosure is a gain for the bank that lent the homeowner money, and it is also a gain for the person who buys the property from the bank because banks generally sell foreclosed homes for less than they are worth. We are not truly free unless everyone is free. As Martin Luther King said, “An injustice anywhere is a threat to justice everywhere.”

Murray Bookchin: Anarchism without the Working Class

By Wayne Price - Anarkismo, December 3, 2015

Although he died in 2006, Murray Bookchin is recently in the news.  Staid bourgeois newspapers report, with apparent shock, that part of the Kurdish revolutionary national movement has been influenced by the ideas of Murray Bookchin, a U.S. anarchist (Enzinna 2015).  However, I am not going to discuss this development here. My topic is not how Bookchin’s political philosophy may apply to the Kurds in Rojava (important as this is), but how it might apply to the U.S.A. and other industrialized and industrializing countries.

Nor will I review the whole range of Bookchin’s life and work (see White 2008).   Bookchin made enormous contributions to anarchism, especially—but not only—his integration of ecology with anarchism.  At the same time, in my opinion, his work was deeply flawed in that he rejected the working class as playing a major role in the transition from capitalism to anti-authoritarian socialism.  Like many other radicals in the period after World War II, he was shaken by the defeats of the world working class during the ‘thirties and ‘forties, and impressed by the prosperity and stability of the Western world after the Second World War. Previously a Communist and then a Trotskyist, he now turned to a version of anarchism which rejected working class revolution.

This was not the historically dominant view held by anarchists.  Bakunin, Kropotkin, Malatesta, Makhno, Goldman, Durrutti,  the anarcho-syndicalists and the anarcho-communists—they believed that  “anarchism is a revolutionary, internationalist, class struggle form of libertarian socialism…. Syndicalism [revolutionary unionism—WP] was a form of mass anarchism…and the great majority of anarchists embraced it.” (Schmidt & van der Walt 2009; 170)  For them, the “broad anarchist tradition” was “‘class struggle’ anarchism, sometimes called revolutionary communist anarchism….” (19)

However, in his 1969 pamphlet, “Listen, Marxist!” (republished in Bookchin 1986; 195—242), Bookchin denounced “the myth of the proletariat.”  He wrote, "We have seen the working class neutralized as the ‘agent of revolutionary change,’ albeit still struggling within a bourgeois framework for more wages [and] shorter hours….The class struggle…has [been]…co-opted into capitalism…. " (202) The last collection of his writings repeats his belief, “…The Second World War…brought to an end to the entire era of revolutionary proletarian socialism…that had emerged in June 1848” (Bookchin 2015; 127). By an “era of revolutionary proletarian socialism,” he did not mean there had been successful workers’ revolutions, but that there had been mass working class movements (Socialist, Communist, and anarchist), with a number of attempted revolutions.

He wrote, “…The worker [is] dominated by the factory hierarchy, by the industrial routine, and by the work ethic….Capitalist production not only renews the social relations of capitalism with each working day…it also renews the psyche, values, and ideology of capitalism” (Bookchin 1986; 203 & 206). (Why these deadening effects of industrial capitalist production did not prevent the existence of a movement for “revolutionary proletarian socialism” for an “entire era” from 1848 to World War II, he did not explain.)

Bookchin did not deny that there still were workers’ struggles for better wages and shorter hours, but he no longer saw this low level class conflict as indicating a potential for a workers’ revolution.  Nor did he deny that workers might become revolutionary, but only, he said, if they stopped thinking of themselves as workers, focused on issues unrelated to their daily work, and regarded themselves as declassed “citizens.”

What is Class Oppression? Who is the Working Class?

By Tom Wetzel - Ideas and Action, November 15, 2015

Occupy Wall Street highlighted class inequality in the USA through its talk about the concentration of income and wealth in the hands of “the 1 percent.” This does put a bullseye on the ruling class in our society. But much of the talk about class in recent times has focused on income inequality. The idea is that “the 1 percent” are at the top because they have the highest incomes. But this fails to get to the heart of the matter. The existence of different income levels doesn’t explain why there are classes at all. After all, what explains why there are such huge differences in income?

When American union leaders talk about a worker struggle as a “defense of middle class jobs”, you’d think they must lead an organization of lawyers and doctors. Again, this is about income. In the past, unions in some industries were able to use their leverage to secure wage gains that would enable some workers to “lead a middle class lifestyle.”

That way of looking at things is a product of the years of the so-called “class truce” after World War 2. By the ‘40s workers had gained major concessions from the capitalist elite in North America and Western Europe.

These concessions didn’t happen because of the election of liberals and “collective bargaining” by “responsible union leaders.” In the period between World War 1 and the 1940s the entire capitalist order was under assault around the world. There were revolutions in numerous countries, widespread factory seizures by workers, general strikes. Throughout Latin American there were large revolutionary syndicalist labor movements. Repressive dictatorships were imposed in many countries to crush radical working class movements.

The capitalist elite were forced to make concessions in the ‘40s because of a threat to the very existence of their system. From that period until the early ’70s real wages in the USA continued to rise for many workers.  This happened for two reasons:

(1) The employers could provide increasing wages because investment in technology increased output per worker hour, and:

(2) Workers engaged in strikes which enabled them to capture a rising share of the revenue created by their labor.

They were helped in doing this by institutional changes won in the ‘30s-40s era — such as wide-spread collective bargaining and a legal baseline of minimum wages. Many at the time thought this was some sort of permanent change in the system.

In fact that era of relative peace in the class war proved to be a brief period in the history of capitalism in North America and Western Europe. Since the ’70s the ruling class has been on the war path to uproot the gains of the ’30s-’40s era, suppress unionism, and keep wages low. In the so-called “neo-liberal” era, the bosses’ system has returned to its more  basic “laws of motion.”

Talk of some workers being part of “the middle class” because they have somewhat higher  wages than poorer people obscures the reality of class oppression and drives a rhetorical wedge between better paid and lower paid workers.

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