Left, Right, and Nowhere

Paul Krugman, "The Destructive Center

What do you call someone who eliminates hundreds of thousands of American jobs, deprives millions of adequate health care and nutrition, undermines schools, but offers a $15,000 bonus to affluent people who flip their houses?

A proud centrist.

Detroit: An American Crisis

Lawrence Porter and Naomi Spencer. "Social crisis in Detroit: A special report"

• Part 1: The spiraling cost of food" (June 20, 2008)


• Part 2: The impact of gas prices" (June 21, 2008)


• Part 3: Collapse of an American city" (June 23, 2008)

Detroit, historically known as the auto capital of the world, has been transformed into the biggest poor city in America, according to the US Census Bureau, with an official poverty rate of 31.4 percent. Detroit has earned this designation several times over the past 30 years as the auto industry destroyed tens of thousands of decent paying jobs.

This once booming city of 2 million has lost more than half of its population, now standing at 900,000, with the exodus accelerating yearly. In some areas only the poorest people remain and the tax and employment bases have collapsed. As a result of the decline, Detroit has the highest high school dropout rate of any big city in the country—over 50 percent. It also has one of the highest unemployment rates in the US and is listed among the top 10 cities in home foreclosures. The city also has recently been determined to have the highest rate of families needing food assistance.

• • •

Jada Browning, an out-of-work waitress and mother of three, told the WSWS, “It’s crazy. You either walk or put money in your car so that you can get a job.” She said that food prices were so high, utility bills just had to wait, and gas was too expensive for her to purchase a full tank for her van. “I haven’t been able to fill it up in so long I couldn’t tell you anymore,” she said. “You know, I’m scrounging for $20-$30, and that is just enough to pick my son up from school and go put in a couple of [job] applications. It is just hard.”

Substantial sections of Detroit’s population do not even have vehicles and must find other means of transportation. In fact, according to the US Census Bureau, 21.9 percent of households—more than one in five—do not possess a car. This places an enormous constraint on quality of life for residents who must travel across the sprawling metro area for work, food, school, and other basic obligations.

Detroit is the most expensive city to own and operate a car, according to Runzheimer International, a management-consulting company based in Wisconsin that specializes in employee reimbursement costs. Detroiters pay an average $5,894 for auto insurance alone each year. In all, operating expenses such as gas, tires, oil, maintenance and ownership costs such as insurance total $11,844 for city residents. Having a car is a major expense that is out of the question for many.

• • •

The decimation of auto industry compensation—the standard-setter for pay scale and benefits in many other sectors of industry, as well as the driver of the economy in the region—combined with cuts to public assistance programs have truly devastated working class living standards.

As the cost of living spirals, thousands of families now face a tremendous financial conundrum.

Poverty is pervasive in Detroit. In 2006, according to the federal Census Bureau, median household income in the city was $29,500. This figure is nearly $20,000 less than the median household income nationwide. Per capita income for the city was only $14,700 in 2006.

Such a low income cannot support a mortgage, a family’s basic food and transportation needs, childcare costs and other expenses. As a result, thousands of families turn to emergency government assistance and charity.

Statewide, more than 1.25 million people now receive federal food assistance through the Food Stamp program—a record number and yet still far from the number of people who qualify for aid.

The Economy of Hunger

Mary Dejevsky, "There's no reason why the world should go hungry"

Overall, the assumption that a richer and more populous world will not be able to feed itself needs more critical examination than it is getting. Take the past: India and famine were once synonymous; that is no longer so. Take the present and the distorting demand for rice in Africa: the development of strains resistant to drought and salinity is well advanced, without resort to controversial genetically modified varieties. But the most effective remedy would be peace. Then take future concerns about farmland: huge acreages in Russia, Ukraine and parts of Central Asia are currently unfarmed, or farmed only inefficiently. As this land is bought up by investors and farmers – as is quietly happening – supply will surely rise to meet demand.

For all these reasons, I wonder whether the world is really running short of food. Or is it rather in thrall to a fevered market in which speculators gamble on stratospheric long-term price rises and so drive up prices today? When I press the button on my next online grocery order, I will think less about whether 1.3 billion Chinese are better nourished and more about whether a futures market in staple food crops belongs in a civilised world.

Feed the World

Alex Lantier, "The world food crisis and the capitalist market"

• Part One (June 7, 2008)


• Part Two (June 9, 2008)


• Part Three (June 10, 2008)

With consumers increasingly unable to pay world market prices for food, national governments are compelled to intervene to avert famine and revolt. These interventions, while offering at best partial resolutions to local problems, only increase difficulties elsewhere. Exporting states are limiting their external sales in an attempt to shield their own populations from the worst of the price rises, while extorting higher prices from importing nations by restricting supply.

The most devastating price increases are those for the basic food grains. These are relatively non-perishable and therefore widely traded, and make up a third or more of daily caloric intake, especially in poorer countries. They are also used extensively in other parts of the food chain—e.g., for livestock feed and sweeteners—thus affecting prices for meat, eggs, dairy products and various processed foods.

• • •

The central problem underlying the current food crisis is not a physical lack of food, but rather its unaffordability for masses of people due to rapidly increasing prices. Among the immediate factors driving the rapid worsening of the food crisis, a major role is played by the explosion of speculative investment in basic commodities such as oil and grain, itself bound up with the difficulties facing US and world financial markets and the decline in the US dollar. Rampant speculation by hedge funds and other big market players has increased costs, encouraging private firms to further bid up prices in a competitive drive to amass as much profit as possible.

Official statistics disprove the assertion that there is not enough food for everyone. According to 2008 US Department of Agriculture figures, the average per capita consumption is 2,618 calories per day in developing countries and 3,348 in developed countries, compared with a recommended minimum of 2,100 calories. However, profound disparities in access to this food, stemming from poverty and social inequality, condemn many millions to hunger.

• • •

The current food crisis reflects not only financial events of recent years, but longer-term policies of world imperialism. Instead of allowing for a planned improvement of infrastructure and farming techniques, globalization on a capitalist basis has resulted in a restriction in many parts of the world of farm production. This has been carried out in order to lessen competition and prevent market gluts from harming the profit interests of the major powers.

One major aspect of imperialist policy was to limit farm production in the so-called "First World" to prevent sudden falls in world prices. In the US, this policy took the form of the federal government's Conservation Reserve Program, first passed as part of the 1985 Food Security Act.