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Published on April 21st, 2010 | by Tom Engelhardt

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Tomgram: William Astore, The Business of America Is Kleptocracy

American Kleptocracy
How Fears of Socialism and Fascism Hide Naked Theft

Reprinted with permission of TomDispatch.com

By William J. Astore

Kleptocracy — now, there’s a word I was taught to associate with corrupt and exploitative governments that steal ruthlessly and relentlessly from the people.  It’s a word, in fact, that’s usually applied to flawed or failed governments in Africa, Latin America, or the nether regions of Asia.  Such governments are typically led by autocratic strong men who shower themselves and their cronies with all the fruits of extracted wealth, whether stolen from the people or squeezed from their country’s natural resources.  It’s not a word you’re likely to see associated with a mature republic like the United States led by disinterested public servants and regulated by more-or-less transparent principles and processes.

In fact, when Americans today wish to critique or condemn their government, the typical epithets used are “socialism” or “fascism.”  When my conservative friends are upset, they send me emails with links to material about “ObamaCare” and the like.  These generally warn of a future socialist takeover of the private realm by an intrusive, power-hungry government.  When my progressive friends are upset, they send me emails with links pointing to an incipient fascist takeover of our public and private realms, led by that same intrusive, power-hungry government (and, I admit it, I’m hardly innocent when it comes to such “what if” scenarios).

What if, however, instead of looking at where our government might be headed, we took a closer look at where we are — at the power-brokers who run or influence our government, at those who are profiting and prospering from it?  These are, after all, the “winners” in our American world in terms of the power they wield and the wealth they acquire.  And shouldn’t we be looking as well at those Americans who are losing — their jobs, their money, their homes, their healthcare, their access to a better way of life — and asking why?

If we were to take an honest look at America’s blasted landscape of “losers” and the far shinier, spiffier world of “winners,” we’d have to admit that it wasn’t signs of onrushing socialism or fascism that stood out, but of staggeringly self-aggrandizing greed and theft right in the here and now.  We’d notice our public coffers being emptied to benefit major corporations and financial institutions working in close alliance with, and passing on remarkable sums of money to, the representatives of “the people.”  We’d see, in a word, kleptocracy on a scale to dazzle.  We would suddenly see an almost magical disappearing act being performed, largely without comment, right before our eyes.

Of Red Herrings and Missing Pallets of Money

Think of socialism and fascism as the red herrings of this moment or, if you’re an old time movie fan, as Hitchcockian MacGuffins — in other words, riveting distractions.  Conservatives and tea partiers fear invasive government regulation and excessive taxation, while railing against government takeovers — even as corporate lobbyists write our public healthcare bills to favor private interests.  Similarly, progressives rail against an emergent proto-fascist corps of private guns-for-hire, warrantless wiretapping, and the potential government-approved assassination of U.S. citizens, all sanctioned by a perpetual, and apparently open-ended, state of war.

Yet, if this is socialism, why are private health insurers the government’s go-to guys for healthcare coverage?  If this is fascism, why haven’t the secret police rounded up tea partiers and progressive critics as well and sent them to the lager or the gulag?

Consider this: America is not now, nor has it often been, a hotbed of political radicalism.  We have no substantial socialist or workers’ party.  (Unless you’re deluded, please don’t count the corporate-friendly “Democrat” party here.)  We have no substantial fascist party.  (Unless you’re deluded, please don’t count the cartoonish “tea partiers” here; these predominantly white, graying, and fairly affluent Americans seem most worried that the jackbooted thugs will be coming for them.)

What drives America today is, in fact, business — just as was true in the days of Calvin Coolidge.  But it’s not the fair-minded “free enterprise” system touted in those freshly revised Texas guidelines for American history textbooks; rather, it’s a rigged system of crony capitalism that increasingly ends in what, if we were looking at some other country, we would recognize as an unabashed kleptocracy.

Recall, if you care to, those pallets stacked with hundreds of millions of dollars that the Bush administration sent to Iraq and which, Houdini-like, simply disappeared.  Think of the ever-rising cost of our wars in Iraq and Afghanistan, now in excess of a trillion dollars, and just whose pockets are full, thanks to them.

If you want to know the true state of our government and where it’s heading, follow the money (if you can) and remain vigilant: our kleptocratic Houdinis are hard at work, seeking to make yet more money vanish from your pockets — and reappear in theirs.

From Each According to His Gullibility — To Each According to His Greed

Never has the old adage my father used to repeat to me — “the rich get richer and the poor poorer” — seemed fresher or truer.  If you want confirmation of just where we are today, for instance, consider this passage from a recent piece by Tony Judt:

In 2005, 21.2 percent of U.S. national income accrued to just 1 percent of earners.  Contrast 1968, when the CEO of General Motors took home, in pay and benefits, about sixty-six times the amount paid to a typical GM worker.  Today the CEO of Wal-Mart earns nine hundred times the wages of his average employee.  Indeed, the wealth of the Wal-Mart founder’s family in 2005 was estimated at about the same ($90 billion) as that of the bottom 40 percent of the U.S. population: 120 million people.

Wealth concentration is only one aspect of our increasingly kleptocratic system.  War profiteering by corporations (however well disguised as heartfelt support for our heroic warfighters) is another.  Meanwhile, retired senior military officers typically line up to cash in on the kleptocratic equivalent of welfare, peddling their “expertise” in return for impressive corporate and Pentagon payouts that supplement their six-figure pensions.  Even that putative champion of the Carhartt-wearing common folk, Sarah Palin, pocketed a cool $12 million last year without putting the slightest dent in her populist bona fides.

Based on such stories, now legion, perhaps we should rewrite George Orwell’s famous tagline from Animal Farm as: All animals are equal, but a few are so much more equal than others.

And who are those “more equal” citizens?  Certainly, major corporations, which now enjoy a kind of political citizenship and the largesse of a federal government eager to rescue them from their financial mistakes, especially when they’re judged “too big to fail.”  In raiding the U.S. Treasury, big banks and investment firms, shamelessly ready to jack up executive pay and bonuses even after accepting billions in taxpayer-funded bailouts, arguably outgun militarized multinationals in the conquest of the public realm and the extraction of our wealth for their benefit.

Such kleptocratic outfits are, of course, abetted by thousands of lobbyists and by politicians who thrive off corporate campaign contributions.  Indeed, many of our more prominent public servants have proved expert at spinning through the revolving door into the private sector.  Even ex-politicians who prefer to be seen as sympathetic to the little guy like former House Majority Leader Dick Gephardt eagerly cash in.

I’m Shocked, Shocked, to Find Profiteering Going on Here

An old Roman maxim enjoins us to “let justice be done, though the heavens fall.”  Within our kleptocracy, the prevailing attitude is an insouciant “We’ll get ours, though the heavens fall.”  This mindset marks the decline of our polity.  A spirit of shared sacrifice, dismissed as hopelessly naïve, has been replaced by a form of tribalized privatization in which insiders find ways to profit no matter what.

Is it any surprise then that, in seeking to export our form of government to Iraq and Afghanistan, we’ve produced not two model democracies, but two emerging kleptocracies, fueled respectively by oil and opium?

When we confront corruption in Iraq or Afghanistan, are we not like the police chief in the classic movie Casablanca who is shocked, shocked to find gambling going on at Rick’s Café, even as he accepts his winnings?

Why then do we bother to feign shock when Iraqi and Afghan elites, a tiny minority, seek to enrich themselves at the expense of the majority?

Shouldn’t we be flattered?  Imitation, after all, is the sincerest form of flattery.  Isn’t it?

William J. Astore is a TomDispatch regular; he teaches History at the Pennsylvania College of Technology and served in the Air Force for 20 years, retiring as a lieutenant colonel.  He may be reached at wjastore@gmail.com.

This article originally appeared on TomDispatch.com.

Copyright 2010 William J. Astore

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5 Responses to Tomgram: William Astore, The Business of America Is Kleptocracy

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  1. avatar scott says:

    Obscurantism? Hey Jon!

    This is really the primary issue for me. I believe that the whole Israel Palestine issue is captive to the very dynamic Bill Astore is describing.

    The economic literacy of the American people is astonishing. I’ve tought myself more about economics than they teach in MBA school. Of course I’m assuming, foolishly, that they teach anything in school. The indoctrinate and confuse.

    It’s astonishing and disheartening. America is steaming toward a giant waterfall and we have to turn this steamer around before it’s too late. It’s a big ship of state that we’re sailing and it will take awhile to turn around. Only we’ve yet to decide to turn left or right.

    Look at demographics and who votes. Old people aren’t gonna rethink things, they aren’t gonna cut their benefits. We younger folk are stuck with the sorriest generation. They’ve been fooled again and again. They vote for tax cuts and profligate spending. They’ve sown sterile seeds and weeds are choking the garden. Every stimulus dollar is sucked up by the weeds.

    Finally, the greatest offense is that these jackasses resent discussions of politics in polite conversation. My mother says she isn’t interested in this stuff. I correct her, “you have a tremendous interest in what’s happening. What’s pathetic is that you can’t be interested to learn and voice an informed opinion.”

  2. avatar Jon Harrison says:

    Not there isn’t some truth in what Mr. Astore says, but the arguments here are hardly balanced. I’m kinda surprised you ran this. I expect rational analysis from this site. It’s very disappointing to see this kind of drivel appear here.

  3. avatar Jon Harrison says:

    Sorry, insert “that” after “Not” in my reply.

  4. avatar scott says:

    Hardly balanced? Against what? All our news is so fawning. CounterPunch has a great interview with a 65 yr old South Carolina tea party protester. He says “[Americans voted for Peace when they got Obama, they got ObamaCare. He said we live in a Mediaocracy. The media, the 7 corporations that own them vet these guys from the primaries onward.]”

    It was definitely entertaining and worth a read. It’s a respectful treatment of the man in Andrew Cockburn’s latter comments after he reflects on the pot industry in Humbolt Cty CA.

    I think you’re in denial Jon. The substantial subsidies given to a relative few corporations is scandalous, perverts our markets and has metastasized into a real danger for this country. We CAN’T audit the Pentagon!?! How absurd is that? I beg equal protection under law!

  5. avatar Jon Harrison says:

    Yep, you must be right. I disagree with the tone and one-sidedness of the piece (though not entirely with the substance, as I said), therefore I’m in denial. Demurring at the lack of nuance and objectivity places me way out there in la-la land.
    At last I see myself for what I am!


About the Author

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Tom Engelhardt, co-founder of the American Empire Project and the author of The American Way of War: How Bush’s Wars Became Obama’s as well as The End of Victory Culture, runs the Nation Institute's TomDispatch.com. His latest book is The United States of Fear (Haymarket Books).



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