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CALIFORNIA CHAPTER
Social Action/Social Justice Council

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Gene Rothman
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California Budget Crisis II

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Social Workers and Neo-Liberalism:

Why This Alliance Hurts our Clients—and Us. 

 By Gene Rothman, DSW, LCSW

 

 

           In his instructive article “This Crisis Is Not News,” Sam Coleman explains how many decades of neo-conservative ideology helped to produce  the current California budget crisis. By repudiating social investments, demonizing progressive taxation, and by relying exclusively on the unfettered “free market” to provide for social needs, the neo-conservatives set the stage for this debacle. Coleman makes a critical observation when he notes that this unrealistic and unsustainable funding were designed by the “neo-cons” intentionally as a way to “starve the beast” of government, thereby leaving the private sector as the only viable alternative. As a consequence, we have again balanced our budget on the backs of our most vulnerable citizens, sparing Big Oil (as the only state in the union with no tax on oil extraction), the California Department of Corrections and Rehabilitation  (boasting that it will achieve minimal budget cuts by de-funding rehabilitation programs,) yacht owners, the wealthiest top percentile of the population, and owners of commercial real estate, whose real property value is far below its assessment level for tax purposes.

      But this neo-conservative deluge is only one part of an equation of why this crisis is not news. The other element, which I will address in this essay, involves the collusion, capitulation, and cowardice of the neo-liberal wing of the Democratic Party—the Democratic Leadership Council (DLC).

     The DLC “New Democrats” urged a center-right form of government relying on the marketplace rather than on “New Deal” regulations and public works. A few brief examples illustrate the damage of this “Republican-lite” approach.  “Exhibit A” is the de-regulation of banks and the dismantling of the New Deal, under President Clinton. The repeal of the Glass-Steagall Act in 1999, allowing free rein to non-traditional and unregulated forms of investment, is a key example. In combination with an emphasis on “free trade” (e.g. NAFTA), this led to a predictable flood of undocumented workers from the then-devastated rural areas of Mexico, further pitting African Americans (and others) in the more unionized sectors of the California economy against an even cheaper labor pool of “illegals” when they sought work here. Corporate interests, who gained the most from this arrangement, then sponsored “Tough on Crime” drug laws, leading to the massively disproportionate incarceration of people of color.  Along with speculative investments, “go-go capitalism,” and massive reliance on credit --including the use of home mortgages as piggy banks--the recent meltdown of job losses and foreclosures, was also predictable. To complete the cycle, the enriched corporate owners had cash aplenty to donate to [i.e. to bribe] politicians. They are, in fact, part of a system of crony capitalism beholden to Big Oil, the financial and health insurance sectors of the economy, and the military-industrial complex, to name just a few of their chief beneficiaries.  Unlike the experience of the “New Deal,” investments in healthcare, infrastructure, education, and social welfare went south. On one of his signature issues—healthcare--Obama himself channeled Dick Cheney by inviting only health insurance representatives to his healthcare summit. “No healthcare professionals or consumer groups need apply.”

      For progressives like myself, however, the relevant focus is not on individuals, even powerful ones like Clinton or Obama.  Instead, the issue is the system and how social movements can be organized to counter a ruling elite.  For those concerned about ordinary Americans, social workers Frances Fox Piven and Richard Cloward’s Poor People’s Movements: Why They Succeed and How They Fail, points the way to real social change. These authors note that in times of crisis like those we are now experiencing, elites (like the neo-conservative and neo-liberals of today) divide not so much over principles, but rather over tactics of how much “stick” and how much “carrot” should be used to regulate the poor and the increasingly vulnerable middle-class.

       Those who support neo-liberals fail to realize how much their co-optation into “the system” harms us all.  But don’t take my word for it.  Here is what Martin Luther King, Jr., said to the liberals of his time:

 

    First, I must confess that over the past few years I have been gravely disappointed with the white moderate. I have almost reached the regrettable conclusion that the Negro's great stumbling block in his stride toward freedom is not the White Citizen's Counciler or the Ku Klux Klanner, but the white moderate, who is more devoted to "order" than to justice; who prefers a negative peace which is the absence of tension to a positive peace which is the presence of justice; who constantly says: "I agree with you in the goal you seek, but I cannot agree with your methods of direct action"; who paternalistically believes he can set the timetable for another man's freedom…Shallow understanding from people of good will is more frustrating than absolute misunderstanding from people of ill will. Lukewarm acceptance is much more bewildering than outright rejection.  [Letter from a Birmingham Jail, 4/16/63].

 

Next:  Strategies for progressives in the face of liberal capitulation to corporate influences.