Under Lock & Key

Calculating the transfer of wealth from exploited nations to imperialist countries is a difficult task. Even those with the knowledge and time to do the research find that bourgeois economics does not look at things in terms that Marxists do. There are a number of excellent books by Marxists on this topic on our literature list.(1) Adding to this research is a recent report from Global Financial Integrity (GFI), which they call “the most comprehensive analysis of global financial flows impacting developing countries compiled to date.”(2)

“since 1980 developing countries lost US$16.3 trillion dollars through broad leakages in the balance of payments, trade misinvoicing, and recorded financial transfers… the report demonstrates that developing countries have effectively served as net-creditors to the rest of the world with tax havens playing a major role in the flight of unrecorded capital. For example, in 2011 tax haven holdings of total developing country wealth were valued at US$4.4 trillion, which exacerbated inequality and undermined good governance and economic growth.”(2)

According to the report, China is responsible for about a quarter of the Third World’s net resource transfers to the First World. Despite a growing finance capitalist class, China is still the largest proletarian nation providing wealth for Amerikans and other First World nations. A long fall from grace from when it was the most advanced socialist economy in history, reinvesting all of its wealth into building its own self-sufficiency and serving the needs of its own people.

Last year, the so-called “Panama Papers” brought more light to the issue of tax havens, and the role they play in allowing finance capitalists to move money in ways that avoid having to pay taxes to the states they operate in and often avoiding other legal restraints on how they do business. GFI points to tax havens, as well as illegal movement of capital goods, as playing large roles in facilitating this transfer of wealth from the exploited countries to the imperialist core countries.

Possible solutions to this problem provided in the cited articles are debt forgiveness, shutting down tax havens, and enforcement of fines by agencies such as the World Trade Organization (WTO).(3) Having powerful people monitor and fine other powerful people is like the fox guarding the hen house, and will never make fundamental changes in a system whose whole purpose is the drive for profit.

MIM(Prisons) supports the call for debt forgiveness for poor countries. As the report states, “for every $1 of aid that developing countries receive, they lose $24 in net outflows.”(2) A campaign to resist these predatory aid programs combined with forgiveness of existing loans would loosen the current death grip of imperialism on the exploited nations of the world. And if we consider the numbers below, 1:24 is a gross underestimation of the scale of exploitation going on.

Another powerful move to provide some relief to the poor under capitalism would be to enforce a global minimum wage through a body such as the WTO. Economist Arghiri Emmanuel showed the relationship between wage levels and the transfer of wealth between nations in the form of unequal exchange. While this recent work by GFI is more in-depth than most by looking at illegal practices such as reporting false prices to avoid taxes and restrictions, it ignores the hidden transfer of wealth that is enabled by the low wages that are violently enforced on the proletariat of the exploited nations. This transfer of wealth is not included in the $16.3 trillion transfer of wealth calculated by GFI. MC5 of MIM estimated wealth transfer to the imperialist countries at $6.8 trillion in just one year (1993), as did Zak Cope, who looked at 2009 with a similar lens but different approach to MC5.(4)

While GFI states that, “Every year, roughly $1 trillion flows illegally out of developing and emerging economies due to crime, corruption, and tax evasion”, their vision of a capitalism with more integrity would only eliminate an estimated 15% of the value exploited from the majority of the world for the benefit of the imperialist nations. We ally with such bourgeois internationalists on some of the demands mentioned above, but also take it further than they will to eliminate imperialism in all its forms and create a world without any form of exploitation or oppression, whether illegal or not.

I have recently watched a well-planned election and campaign by Donald Trump, soon to be president of the United Snakes of Amerika. But I have to give him credit where credit is due. First, the Democrats for years have used the minority vote to get elected, by making promises of making eir life more better under a democratic capitalistic society.

I do want to question protest. They only focus on revolutionary nationalist struggles aligning their struggle with the left wing national bourgeoisie and with women and men of the left wing nations of the oppressed in Amerika. But we should also remember that not all struggles lead to socialism. The recent protests have cells that are revolutionary nationalism, where the people want the power. We need to study and use strategic methods to overthrow imperialism period. Why protest about issues that are not in line with changing our current economic system?

Now back to my opening on why I give Trump credit. Not to say I support his ideology or policies. I am considering how he managed to get support from the patriarchal labor aristocracy, and the First World lumpens. And some lumpens in the poor rural districts. This explains why Mao asked “who are our enemies, who are our friends?” The white proletariat showed up and it lets us know that they are the majority. And will support a system of imperialism. And the oppression of the Third World peasants. Just as long as the bourgeoisie be fed the illusions that jobs will come back to Amerikkka!

MIM(Prisons) responds: Overall this comrade has a good analysis of the election of Trump and the class that is behind this campaign. However, we want to point out that they are not a white proletariat but rather a white petty bourgeoisie. This distinction is important because the Amerikan workers are not exploited, and this is why they support imperialism: they are benefiting economically from imperialism! It doesn’t really matter if a few jobs come back to the United $tates or not. As was proven with the failed attempts to get citizens to work the fields picking crops, there are some jobs that Amerikans really don’t want. The petty bourgeois class thinks it is owed cushy jobs at high wages, but has no problem with people in the Third World doing grueling work for pennies. The only jobs the Amerikan workers want back are high paying jobs that don’t require much work.

For anyone who believes the myth that white workers in the United $tates are on the decline and getting poorer, we have much in-depth documentation about the level of wealth enjoyed by the vast majority of Amerikan citizens and their well-above-exploitation level wages. This is a question of science, that is all the more important now that it has gained attention not only among false revolutionaries seeking to rally the so-called Amerikan proletariat but also among right-wing politicians gaining center stage in Amerikan politics. As this writer points out, we must be clear about who are our enemies and who are our friends, and at base this question requires a clear analysis of class and nation within U.$. borders. Write to us for a copy of our labor aristocracy study pack to get a more in depth understanding of this important point.

For the second time in about one month over 900 prisoners at River North Correctional Center were given piss tests. Now if a prisoner is causing problems that indicate drug abuse, it’s perhaps reasonable to test him. But testing the entire prisoner population is a fishing expedition just hoping to catch someone.

Do the prison pigs have some admirable goal? No. They just catch people to make lives miserable by taking jobs, suspending visits, confining in seg, etc. If each test and lab fee is just $30 then the pigs spent over $54,000 in a month on the off chance they might get to punish someone for using drugs that were not prescribed.

For thousands of years humans have used mind altering substances. The “soma” of ancient India, the mushrooms of the Incas, peyote, opium, reefer, and alcohol are but a few examples. Only recently – within 100 years – have governments made the “drugs” illegal. What have these laws done to stop drug use and abuse? Nothing, as we see drug abuse at an all time high. These imperialist laws only target people, ruining lives with jail/prison while lining the pockets of the pigs with money for funding of the “war on drugs.”

A few generations ago a community had cobblers and tailors, blacksmiths and silversmiths, lamp makers and other craftspeople. The cobbler knew the people and knew the kids had warm, dry feet due to his skill. The lamp maker knew she gave them light. Today, how many of our household items are made by people we know? Our shoes are made in a factory by a kid operating a machine at exploited wages. The store with neighbors who called us by name was an imperialist casualty, destroyed by greed.

Imperialism, with its global capitalism has destroyed us. Drug abuse is merely a convulsion before death. But you can be revived. You can join us in re-structuring our communities, our form of government, our lives. That’s the call of revolution. Are you willing to die in order to feel alive? Let us use the things you make and let us make the things you need. In revolution every person has an essential part and there’s no time for addiction or drug abuse.

MIM(Prisons) responds: We like this author’s point about the waste of time that is drug abuse, and the reality that this abuse comes from the alienation fostered by capitalist culture. We sent some feedback to this author on eir first draft of this article because it took up an anti-corporate line that seemed to promote small scale capitalism rather than anti-imperialism. We know that we have much unity with this author and so suggested ey rewrite it. This rewritten version is an improvement but still we want to clarify that small scale capitalism is still capitalism. It is true that huge corporations are a product of imperialism, the highest stage of capitalism. But we don’t want to promote nostalgia for petty bourgeois businesses because that’s a reactionary approach; trying to go back to another time. Another time that of course never really existed, since even the early days of capitalism were full of war, oppression, slavery and land grabbing. As this comrade explained, we need a revolution to restructure society, and when that happens we will be able to build a new society where people engage in productive labor, which benefits their community. But it will not look like the capitalism of a few generations ago. We will eliminate the system of profit-driven work, instead allowing all people to work for the betterment of society.

In the course of our discussion with this author over eir article ey correctly noted that Walmart will die when imperialism dies in North America: “Walmart exploits laborers around the globe and is a foundation of Amerikkkan imperialism with revenue that exceeds the gross national product of many small oppressed nations. Yet its foreign laborers are paid pennies per hour. Most of their products are from India (semi-fascist regime) and China (state sponsored kapitalism) where workers are exploited. Not patronizing Walmart and not purchasing products manufactured by exploited workers is an ‘attack’ or at least a ‘stand’ against imperialism. … The corner deli or the local mom/pop shop isn’t exploiting workers in any nation.”

While this comrade is right that big corporations like Walmart are doing far more exploitation of Third World workers than small shops, we don’t agree that the corner shop isn’t exploiting workers in any nation. They are selling the same products or using the same raw materials that everyone else in the United $tates is selling/using: most of it comes from Third World labor at base. Most products in Amerikan stores are manufactured in other countries. So we shouldn’t mislead people into thinking the stuff they buy in a smaller store is exploitation-free. Further, the companies that promote “Made in America” products are not off the hook. Many of them are still buying raw materials and machinery from labor in Third World countries and just assembling products in the United $tates. Finally, most of the U.$. economy is not even productive industries. The service and financial sectors employ most Amerikans, distributing the wealth within U.$. borders, exploited from other nations via trade and extraction of real goods. There is no way to escape participating in the economy of exploitation.

So we don’t tell people to boycott Walmart because we don’t want to mislead people into thinking that they are going to make a difference under imperialism by favoring one type of exploitation over another. If the exploited workers in another country initiated an action against Walmart (or any other corporation) and asked for our support with a boycott, that would be a different story because that is not Amerikan consumerism feeling good about itself by switching where we spend our ridiculous wealth. That would be internationalist solidarity for exploited people rising up against imperialism.

[Need to insert url below. for some reason prisoncensorship.info wasn't loading for me so couldn't pull it up.

I'm not sure this adequately addresses the writer's complaints but re-reading the lumpen class article I don't really get what they are criticizing because we never say that we defined the lumpen using the poverty line. Mostly they seem upset that we don't recognize that some full time workers who earn around $10k really have it hard and that's not enough to pay for their basic necessities. i.e. not exploited, but also life in amerika is so expensive they can't really afford it. I think this is a reasonable premise: there may be a small percentage of these folks in the U.S. who don't spend money on luxuries, work full time, and really can't pay for the basics. They aren't prol, but they also aren't lumpen.

Wia: Yes we do, we say: "Summing up the income data for defining the lumpen population, we can conservatively use the cut off of $10k/year for family income to say that 16% of New Afrikan families are lumpen and 10% of Latin@ families are lumpen or migrant proletarian." But maybe they're missing that we are using it to estimate the people not working full time or working below minimum wage, and not to measure their living conditions.

It seems this would be best written as a letter response to get clarity than an article. I started pulling some (possibly) relevant stuff on incomes, and just tacked it at the end when it seemed this was not really worth publishing. ]

In ULK51 in the article Defining and Measuring the Lumpen Class in the U.$, I found the part of "Lumpen Defined by Income" a bit archaic, and may need to be re-analyzed to give a clearer perspective of the income to standard of living ratio.

Even though unskilled and semi-skilled labor, paid at minimum wage, would seem to be overvalued in comparison to the pay of oppressed nations, from the perspective that minimum wage could buy more and go further within those countries, from the perspective of receiving such pay within the United $nakes it is still not enough to pay for all the basic necessities, such as food, shelter, clothing, medical and education for one humyn, let alone a further humyn.

In 1990 the U.$. tax government declared that under $12,000 a year to be living "At poverty level." In the base pay values of $3 to $5 an hour at 40 hours a week. $5 seems to meet your criteria of the $10,000 cut off point, by being at $10,400 for a 52 week year (no vacations) but would still be considered living under the "poverty line" in 1990, over twenty years ago. I am not sure what the U.$. tax government considers the "poverty level" now, and even though it would be "luxurious" compared to third world standards, at this level within the U.$., to make ends meet, these poverty level humyns would still be considered living parasitically off the wasted excess of the First World, in such commodities as food, shelter, and water that they often obtained in ways other than the trade of government currency.

I just think that the section should be re-evaluated.

MIM(Prisons) responds: In the Defining and Measuring the Lumpen Class article we addressed a few important points. First, we need to understand what the term lumpen means. By definition, those engaged in full time work for pay are not part of the lumpen. The lumpen are unemployed or underemployed. Even people working full time and hustling on the side for extra cash are not part of the lumpen, though they may be more likely sympathetic to lumpen ideas and sentiments. Whether or not someone lives below the poverty line is irrelevant to defining the lumpen. There are some lumpen who earn more than full time working people. We just used income calculations to try to determine what percentage of the population is outside of the traditional workforce.

We're not sure what this comrade would propose for a re-evaluation of that section of defining lumpen by income since we didn't use poverty as a metric for lumpen class status, but rather for full time workers we need to look at income as a metric for proletarian vs. labor aristocracy status (based on whether or not someone earns more than the value of their labor).

We did address this question of the "poverty line" in the lead up to our analysis of lumpen defined by income in that same article: "Yet, even in the recent recession, government-defined poverty rates have not yet reached the levels they were at prior to 1965 when they were around 20%, give or take. In 2011 the poverty rate was recorded as 15%. Even this rate is inflated since assistance in the form of tax credits and food stamps is not counted as taxable income. If this income was included in their calculations it would pull 9.6 million people above the poverty line and bring the percent below the poverty rate to less than 12%. So it is only a small group at the margins that may be seeing a shift in their material conditions such that they could arguably be seen as not largely benefiting from imperialism."

It is true that many full time workers in the U.$. fall below the government-defined poverty line. As this writer says, we can see that many of these folks are living parasitically off of the excess stolen from the Third World. The most interesting point here is that some full time workers need to hustle on the side to survive. That might reasonably expand the group who, while not technically lumpen, is sympathetic to the lumpen and potentially revolutionary.

The Poverty Guideline for 2016 for the 48 contiguous states was $11,880 for an individual, increasing at increments of $4,160 for each additional family member. Many people claim that the cost of living is higher in the United $tates so we deserve to get paid more. This critique is why "purchasing power parity" (PPP) was developed as a way to measure Gross Domestic Product (GDP) per capita. What purchasing power parity measures is not how many dollars the average persyn earns, but the average amount of value in real goods they can purchase with their income. The United $tates ranks #10 in this measurement, with most places ranking higher than it being industrial cities in Asia and small oil-producing entities. (http://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD?year_high_desc=true) The U.$. GDP(PPP) is $55,836 per persyn in 2015, approaching 6 times that of the global average of $15,470. In other words, the "high cost of living" does not justify the high income levels in the United $tates.

Of course, those GDP per capita figures are averages and tell us nothing about the lowest rungs of those populations.

“We seldom, if ever, think of ourselves as among those petty-bourgeois forces in need of committing ‘class suicide’ - but We must remember where We are. Here in the seat of empire, even the ‘slaves’ are ‘petty-bourgeois,’ and our poverty is not what it would be if We didn’t in a thousand ways also benefit from the spoils of the exploitation of peoples throughout the world. Our passivity wouldn’t be what it is if not for our thinking that We have something to lose.” - James Yaki Sayles, Meditations on Frantz Fanon’s Wretched of the Earth, p. 188

I believe this quote may be of some interest to you in your development of the First World Lumpen (FWL). I believe this applies more to the Euro-Amerikkan than to the nationless New Afrikan who falls into the class lumpenproletariat (LP) by default of lacking a class society of its own.

I am aware that the New Afrikan lumpenproletariat (NAL) is more privileged than the Third World lumpenproletariat (TWL). But not privileged enough to make it reactionary. The LP of Amerikkka is majority New Afrikan - or an oppressed nation, which changes the quality of the question. So it is not just a LP, but LP of an oppressed nation. This qualitative leap in the discussion pushes us to do a through theoretical analysis on the LP from all sides of the question.

The contradiction may look like this: First World lumpen and New Afrikan lumpen.

Then it can be stated as this: Euro Amerikan FWL and New Afrikan FWL

Then Euro-Amerikan FWL must be understood to be reactionary as it is majority white nationalist (racist). They consist of oppressor nation background.

MIM(Prisons) responds: We have a lot of unity with this comrade on assessing the national contradiction between oppressed and oppressor nation lumpen. As we get into in the Lumpen Class Analysis article in ULK 51, we make a distinction between the lumpenproletariat and the First World lumpen that gets at this comparison between the NAL and TWL the writer points out. We find the lumpenproletariat in countries where there is a sizable proletariat, while the First World lumpen exists in First World countries where there is almost no proletariat to speak of, and this later group benefits from living in an imperialist country.

Further, we agree that there is an important overlap between class and nation when it comes to the lumpen. The national privilege of the oppressor nation makes it unlikely that the lumpen from that nation will be revolutionary, while national oppression puts the lumpen from oppressed nations more likely to be on the side of the world’s oppressed. In fact, we believe that the class privilege enjoyed by the oppressor nations extends to encompass any potential white nation lumpen to the extent that they can effectively be considered part of the petty bourgeois class from the perspective of class consciousness. And so when we talk about First World lumpen, we are usually looking at oppressed nation lumpen only.

Within the global imperialist camp, particularly here in the United States, there’s a reactionary line being propagated and pursued that the U.S. working class in its entirety is proletarian. Not only is this scientifically incorrect, it’s essentially anti-Marxist no matter how well-intentioned its proponents may or may not be.

With an exceptionally small number of predominately oppressed nationalities, U.S. workers are for the most part beneficiaries of imperialism, and as a social class constitute a “labor aristocracy”, i.e. a class of privileged workers who receive a portion of the profits that the bourgeoisie extracts from the Third World in the form of high wages, numerous benefits, material goods and services. And this includes the goods, services, and profits, extracted, as well as the billions of dollars that are contributed annually to social security by undocumented proletarians, here in the United States.

Some years ago when monopoly imperialism was still in its infancy, Lenin spoke of this stage of capitalism and correctly observed that imperialism gives the bourgeoisie enough super-profits “to devote a part to bribe their own workers, to create something like an alliance between the workers of a given nation and their capitalists…”

The majority of the working class here in the United States have been bought off and bribed, and are clearly by no means a vehicle for revolution at this time. The labor aristocracy has a concrete material basis, that is, a class interest in the preservation of the existing status quo. This is not a case of having to “wake them up” so to speak. They are very conscious of their privileged position in society and the world as a whole. Their material conditions, i.e. their privileged lifestyle, is translated in their minds through their five senses, giving shape to and molding their reactionary ideas and ways of thinking – all of which is further reinforced and solidified through a corresponding culture and bourgeois-owned media, news, entertainment and advertising industry. And as a class of privileged workers, many are not only willing to join U.S. mercenary forces and die to protect and further their privileges, i.e. their piece of the pie, they also commit mass murder on an unprecedented scale of Third World Latinos, Blacks, and other oppressed peoples, including those oppressed within the U.S. empire itself.

To reach into the ranks of the labor aristocracy and proclaim them proletarian in an attempt to develop revolutionary consciousness, and struggle for their so-called worker rights, is to commit a reactionary and strategic error which in reality only serves to further prop up and legitimize imperialism.

To further grasp the material basis that the labor aristocracy is erected upon and which shapes and molds its corresponding consciousness, a brief glimpse into the capitalist production process is necessary, specifically that aspect pertaining to the creation of surplus value.

It is necessary to understand that, as a species, in order to continue living we must first and foremost engage in production, i.e. through the expenditure of human labor we must transform our environment in order to procreate, feed, clothe, and shelter ourselves before any other aspect of society can be pursued, such as the pursuance of science, education, religion, arts, culture, politics, philosophy, laws, etc. Production is the basis and foundation of all societies, and in fact, all these other aspects of social activities not only grow out of, but are a reflection of, and correspond to a society’s particular mode of production. Moreover, it is only through social intercourse and cooperation with one another, in various forms, that these necessities can be realized – hence the source of our social essence.

Today in the current stage of economic development (capitalism-imperialism), the vast majority of the world’s people have been separated from their means of production (land, natural resources, intellectual property, technology, factories, communications, etc.) by property rights which the capitalist classes of the world, who predominately reside within First World borders, have laid claim to. And yet this doesn’t change the essential needs of the human species. We must still have access to the world’s resources and materials so that we may reproduce ourselves in order to survive.

Under these circumstances, the world’s masses, who own very little if anything at all, are forced into a situation where they must sell to the capitalist class, i.e. the bourgeoisie, the only thing they do own, so that they may in turn purchase back from the capitalists the necessities of life. And what they are forced to sell to the bourgeoisie is their labor power. In a capitalist economy, production is driven by profits, not the needs of the entire society. Under this mode of production the role of the bourgeoisie is like that of a parasite – an unnecessary appendage that has been allowed to remain inserted within the production process and whose existence relies wholly on the unpaid labor of others.

With the exception of the majority of imperialist country workers, the bourgeoisie purchases the labor power from the majority of the world’s masses below its value which is the source of all surplus-value (capital and profit). Capitalist production not only creates racial and social inequalities while perpetuating those inequalities which were already in existence, it is also the source of the same prison system we are now confined to.

To elaborate further, surplus-value is that value which is created through unpaid labor power. For example, if the bourgeois owners of a maquiladora invests $1000 a day for the production of shirts - $200 of which pays for the cost of human labor power (variable capital) and $800 which pays for the cost of electricity, oil, cloth, thread, technology, etc. (constant capital), and if it takes, lets say, 5 hours to produce $1000 worth of shirts – the original amount invested, this 5 hours of expended labor power is the true value of the worker’s labor power.

That which is invested in “constant capital” remains constant, that is, it creates no new value but only transfers the value of the electricity, oil, cloth, thread, technology, etc, to the shirts being produced. It is the “variable capital,” i.e. the expenditure of human labor power, that transforms these various materials into shirts (or any goods) that augments new value.

Even if the maquiladora workers produce $1000 worth of shirts in 5 hours, being that their labor power has been purchased and therefore is now owned and controlled by the bourgeoisie, the workers are still required to expend their labor power for the remainder of the working day, whether that be 10, 12, 14, or however many hours the capitalists can get away with. And, in fact, it is in search of this cheap source of labor power and natural resources, i.e. profits and cheap goods, that the imperialists and their bribed mercenary armies launch their global crusades, all under the guise of spreading democracy, or combating terrorism. It is where the people are most desperate, that they can be most thoroughly exploited along with their natural resources, that is at the root of capitalism’s so-called “economic success.”

Lets say 12 hours constitutes a full working day for the maquiladora workers, and if it takes 5 hours to produce $1000 worth of shirts, the workers are still required to expend their labor power for an additional 7 hours, the remainder of the working day. This 7 hours over and beyond the 5 hours is “surplus labor,” 7 hours of unpaid labor power that the bourgeoisie is stealing from the workers.

Being that workers are paid in either hourly wages, piecemeal, or by the day, etc., these various forms of payment only serve to camouflage and disguise the unpaid surplus labor, thus creating a false appearance that the workers are being paid for all of their labor power when in essence they are not.

In a nutshell the bourgeoisie pays the workers below the value of their labor power and pockets the difference in the form of profits and capital (surplus value) upon sale of the goods produced or grown by the workers. What does this have to do with us as a prison population? This mode of profit production inevitably creates social inequalities. It also provides a corresponding ideology and culture which not only has a fixation and obsession with the over-consumption of consumer goods, but is a culture where a person’s social status is judged and determined according to their material possessions. These two elements, the poverty and social inequalities which create the fertile ground, accompanied with its corresponding culture and individualist ideology, crime flourishes and a vast prison system inevitably takes root as a means of social control.

Prior to the emergence of U.S. imperialism, the ruling classes thoroughly exploited a large section of the population within its own artificial borders. But eventually as a result of capitalism’s internal contradictions, i.e., the inherent necessity to expand and the bourgeoisie’s greedy frenzy to suck as much profit out of people as it possibly can, the already existing social inequalities and domestic rebellions intensified and began to undergo a qualitative transformation which further threatened the existence of the bourgeoisie and its loyal beneficiaries.

Although through imperialist expansion, the U.S. bourgeoisie has for the time being accomplished two significant goals prolonging its existence. Rather than having to rely on the exploitation of slaves, the indigenous population, and the most newly arrived European immigrants to create its wealth while continuing to run the risk of being overthrown by its own population, the bourgeoisie was able to pacify its own workers by making further concessions beginning on a large scale in the late 19th century with the first of many continuing campaigns of imperialist expansions. And through imperialist expansion it has not only been able to transfer the vast majority of its domestic exploitation abroad, it has been able to extract far more super-profits from Third World exploitation and natural resources than it was ever able to extract from within its own artificial borders. And with these massive amounts of super-profits and cheap goods, it has created a passive and loyal population out of the majority of its own workers, with a privileged material lifestyle, thus transforming them into a flag waving patriotic labor aristocracy, i.e. beneficiaries and accomplices of imperialism.

By way of imperialist expansion and the transferring of exploitation abroad, this has insured the continuation of the bourgeoisie’s super profits while simultaneously enabling them to pay the majority of U.S. workers above the value of their labor power. The lifestyle of the majority of U.S. workers is not only sustained by Third World exploitation and natural resources for its privileged existence as a social class, but as a social class of privileged workers, it also creates practically no surplus value. A close examination of the Gross National Product (GNP) and federal labor statistics of any given year will demonstrate that nearly all of the monetary value of goods and services sold in this country is created outside of its borders, and that extremely small amount of surplus value that is created within the U.S. empire itself is created predominately by oppressed nationalities, primarily by undocumented Latinos and a small portion of imprisoned Blacks. It is a fact that never in the history of this country’s parasitic existence has it ever fully supported itself from its own labor. Even the very first settlers on these shores used the indigenous peoples as slaves.

Being that the majority of workers in this country form a labor aristocracy, they are therefore by no means proletarian or a material base in which to struggle for in an attempt to develop revolutionary consciousness. To struggle for so-called worker rights of the labor aristocracy amounts to supporting imperialism, i.e. the exploitation and deaths of thousands world wide on a daily basis from preventable diseases, hunger, medical neglect, wars, etc. Struggling for these so-called rights of the labor aristocracy amounts to nothing less than seeking a larger portion of what’s already pillaged and plundered from Third World exploitation, and therefore it is anti-Marxist in essence despite the various forms that it comes packaged in.

In reference to the labor aristocracy Lenin said “… no preparation of the proletariat for the overthrow of the bourgeoisie is possible, even in the preliminary sense, unless and immediate, systematic, extensive, and open struggle is waged against this stratum…”

The gist of Lenin’s contention is significant here, and that is, the labor aristocracy as a social class is not a vehicle for evolution but a reactionary road block that must be struggled against, not only theoretically but in practice. This does not imply that some portions of the labor aristocracy wouldn’t be won over under given objective conditions, but currently in their entirety as a social class, as a result of their concrete material conditions, they are reactionary in consciousness and deed and therefore must be combated – not catered to.

Also of significance, to get to the soul, the motor and driving force of a true people’s revolution, i.e. a socialist revolution, we must, to use Lenin’s words, “go down lower and deeper, to the real masses … to the suffering, miseries, and revolutionary sentiments of the ruined and impoverished masses … particularly those who are least organized and educated, who are most oppressed …” And these masses that Lenin speaks of reside predominately within the Third World and include those sectors of oppressed nationalities and poor who live at the bottom rungs of imperialist society itself and within the prison systems.

Despite reactionary nationalist and patriotic rhetoric, the concrete material reality is, our struggle is not “us” as a unified country pitted against other countries, as we have been taught and programmed to believe. It is a class struggle that transcends all national borders. Even the existence of this prison system is just one interconnected aspect of this larger class struggle of irreconcilable opposites. We as a prison population must deepen our knowledge and raise our political consciousness. We must transform our incorrect narrow nationalistic views into a scientifically correct internationalist outlook and recognize the concrete material reality that we as a prison population are just one of the numerous side effects of an outdated and insufficient economic system that results in the social inequalities where a prison system becomes necessary to protect the stolen riches and privileges of the bourgeoisie and its bought off supporters – the same imperialist economic system that oppresses and exploits Third World people around the globe. Our interests do not lie in siding with our own domestic ruling classes in the imprisoning of over 2 million of our own people, or in the exploitation of billions of Third World people around the globe. Our interests lie with our own impoverished and Third World people, not only against our own bourgeoisie and its beneficiaries, but against all capitalist ruling classes of the world regardless of national borders.

So long as we live in a society that is divided into social classes, poverty vs. rich and everything in between, the preservation and continued existence of the prison system is guaranteed. And any improvements made, internally or externally, in regards to the prison system, as welcomed as they are, will be purely reformist, i.e. temporary and for show. To be as effective as possible and maintain continuity in struggle, our ultimate goal must be the creation of a classless society.

A USW comrade asks:
Recently I was having a conversation here with someone about the “Third World.” This person didn’t think all of Africa, Asia & Latin America was still the “Third World.” I wasn’t totally sure. He also asked exactly what qualifies a country for Third World status. I had no answer, he asked someone outside prison who looked online and stated all Latin America is still Third World but China was now considered “Second World,” is this true? Can you send me an article on “Third World” - past, present, and future? Thank you.

MIM(Prisons) responds: The use of the terms First, Second and Third World arose during the Cold War, when the Western imperialist-led block was referred to as the First World, the communist block was the Second World, and the Third World were the so-called non-aligned countries who were also the most exploited and underdeveloped countries by design.

Mao Zedong put forth an alternative assessment of the world using these terms. By this time the Soviet Union had clearly gone back on the capitalist road. So while the West saw the Soviet Union as communist, China saw it correctly as imperialist. Mao therefore labeled the two superpowers, U$A and the Soviet Union, as the First World. He grouped other imperialist countries as the Second World, which he saw as potential allies against the First World. Then the exploited countries he saw as the Third World, including socialist countries like China itself.

Today, the general usage of the term Third World is more consistent and it is closer to the way Mao defined it. It might be used interchangeably with terms like “exploited nations,” “oppressed nations,” “underdeveloped countries,” “periphery” or “global south.” In 1974 Mao said, “The third world has a huge population. With the exception of Japan, Asia belongs to the third world. The whole of Africa belongs to the third world and Latin America too.”(1) To this day, this is probably the most common view of who is the Third World. But of course it is more nuanced than that.

It is worth mentioning the more recent use of the term Fourth World to refer to indigenous populations that are not really integrated into the capitalist world economy. This points to the reality that the vast populations that we might lump into the category of Third World can vary greatly themselves. The distinction is a more useful point when analyzing conditions within a Third World country than when doing a global analysis.

In the earlier years of the Soviet Union, Stalin summed up Lenin’s theory of imperialism and split “the population of the globe into two camps: a handful of ‘advanced’ capitalist countries which exploit and oppress vast colonies and dependencies, and the huge majority consisting of colonial and dependent countries which are compelled to wage a struggle for liberation from the imperialist yoke.”(2) This is how we view the world today, when there is no socialist block with state power. But we also know that historically the socialist USSR and socialist China both saw themselves in the camp of the exploited countries, or the Third World.

In our glossary, we define Third World as, “The portion of the geographic-social world subjected to imperialist exploitation by the First World.” If this is our working definition, we might choose to use the term “exploited nations” to be more clear. But this comrade brings up a good question asking about China. And it leads us to the question, is China still an exploited nation?

We will only superficially address this question here, but we think the obvious answer is “yes.” It was only recently that the peasantry ceased to be the majority in China. And after the destruction of socialist organizing in the mid-1970s, the conditions of the peasantry quickly deteriorated pushing people to leave their homelands for the cities. While urban wages have seen steady growth in recent years, even that masks a vast and diverse population. The average annual income of $9,000 puts an urban Chinese worker in the neighborhood of earning the value of their labor.(3) But the average is greatly skewed by the wealthy, and most workers actually make far less than $9,000 a year. Combine them with the almost 50% of the population in the rural areas and we’ve got a majority exploited population.

Another way to think about China as a whole is that it accounts for about 25% of global production.(4) Capitalism cannot function and pay over a quarter of the world’s productive labor more than the value they produce. Keeping all the value of your own labor (and more) is an elite benefit only granted to a tiny minority found almost wholly in the First World. There is really no feasible path forward that leads to the vast majority of Chinese people benefiting from imperialism when they make up almost 20% of the world’s people. This is a contradiction that Chinese finance capitalists must deal with.

While the modern interpretation of the term Third World tends to be a descriptive term for the conditions of that country alone, the definitions from the Cold War era actually defined Third World countries by how they relate in the global balance of power. To define a country as Third World is more meaningful when it is done to define its interests in relation to others. Can we count on the Chinese to take up anti-imperialism or not? Or, as Mao put it, who are our friends and who are our enemies? That is the important question.

While we see the makings of more and more revolutionary nationalist organizing by other nations against China in the future, we cannot put the Chinese nation in the camp of oppressor nations. It is our position that some 80% of the world are of the oppressed nations that oppose imperialism. Including China as an oppressor nation would push that number down near 60%. But the conditions in China just don’t support that categorization.

The bourgeois myth is that the world has been in a period of peace since the end of World War II. The MIM line has always been that World War III is under way, it’s just taken the form of the First World vs. the Third World, so First Worlders don’t worry about it so much. In recent years that has begun to change as witnessed in thinly veiled conflicts in places like Ukraine and Syria. In recent months we’ve seen U.$. and Russian military on the same battlefield, not on the same side. And both countries are gearing up to increase their militarys’ involvements in that war in Syria. This is the first time that the inter-imperialist contradiction has been so acute since Gorbachev took power in the Soviet Union in 1985 and began the dissolution of the union in partnership with the Western imperialists.

Politically speaking, it would be reasonable to consider countries like Russia, as well as China, to be the Second World today, as they provide a counterbalance to the imperialist interests of the dominant imperialist powers of Europe, Japan and, most importantly, the United $tates. As such, Russia and China can play progressive roles as a side-effect of them pursuing their own non-progressive interests, because they challenge the dominant empire. However, we have not seen the term Second World used in this way, and you don’t really hear the term these days. Perhaps the growing inter-imperialist conflict will warrant its comeback.

Every article in ULK 44 is on point! “Baltimore: Contradictions Heightening” leaves me hoping there are boots on the ground to guide the demonstrators into an organized resistance. It seems from historical examples that destruction of property and forcible removal of merchandise gets results, e.g. Rodney King, whereas candles and prayer obtain imperialistic praise, e.g. Trayvon Martin in Florida. When a kkkapitalist suffers economic harm, imperialist forces will crush a few of their own thug enforcers to restore the facade of calm. Destroy the property of the bourgeoisie and the killers of oppressed citizens get arrested.

Loco1’s article on the sovereign citizen movement does much to dispel myth and urban legend. But often the hope of fallacy is stronger than the cold fist of truth. Recently a rumor has spread that prisoners may file a 42 USC 1983 petition for just $35 if they tell the clerk to “file it in the green file without the protection of admiralty law.” Even though I’ve shown men an order from a magistrate judge, and a letter from the court clerk, both stating $400 is the filing fee ($350 if in forma pauperis is granted), prisoners still insist they only have to pay $35. I even showed them an order denying a prisoner’s request to “file his petition for $35.”

As for the sovereign citizen rubbish, it is historical fact that even when a legal remedy does provide liberation, the supreme court of the united snakes devises methods to make it inapplicable to the oppressed. Look up Dred Scott. Consider that “a prison inmate … is not an employee within the meaning of the [Federal Labor Standards Act].”(1) Does anyone honestly believe that an imperialist court of pig justices would uphold the sovereign citizen argument? Even if the argument was rooted in sound legal principles (and your articles shows it is not), the imperialist powers in the court are not going to say the government that empowered them is a fraud and void.

And Rashid is incorrect, especially on the subject of the labor aristocracy. First, MIM’s definition can be validated by simply engaging in discussion with prison staff, including teachers. Those people do not identify with the workers in other nations. Recently a teacher told me that his gas prices should be lower because “Iraq owes us their oil in exchange for our blood in liberating them.” When I replied that I don’t recall any Iraqis ever asking us to invade their country and plunge it into civil war, he said, “You only hear what you want to hear.” I was also informed it is fair for a factory worker in India to earn 46 cents an hour because “Amerikkka and England built that country for them.” Really? And second, just because members of revolutionary groups are possibly from bourgeois or aristocratic backgrounds, it does NOT mean those groups as a whole will support revolution. But neither does it automatically exclude one from the fight. There were Germans who fought against the nazis. And Americans who fought for the bastards.

Despite the rhetoric of the social fascists, conditions in the United $tates have remained quite luxurious following the 2008 economic crisis. How is this possible? For one there is a nice cushion of wealth to fall back on in hard times. According to the report by Credit Suisse, about a third of the world’s household wealth belongs to Amerikans.(2) So if everyone’s wealth was reduced proportionately during crisis, Amerikans would fair better than almost everyone else in the world. But that’s only scratching the surface, as it turns out wealth did not go down proportionately.

In a comparison of wealth growth by regions since 2000, Credit Suisse show the data with current as well as constant exchange rates. This demonstrates the impact that exchange rates have on wealth by region. Exchange rates are connected to mechanisms of unequal exchange, where value is transferred in a hidden way in the process of international trade. Exchange rates are also manipulated intentionally by the finance capitalists and their institutions (such as the IMF). In both cases, this can result in great transfers of wealth to the countries that control the markets, which is most often led by the United $tates. What the two data show is that the depreciation of currency in the Third World against the U.$. dollar accounted for much of the decrease in wealth during 2008. In other words, currency exchange rates provided a cushion to the economic crisis centered in the United $tates by pushing much of that crisis to the Third World. Africa is the only region to have not recovered to its pre-2008 wealth levels, but it would have done so if not for currency depreciation. In other words, as bubbles popped in the U.$. financial markets, wealth was being slowly pumped back in from the Third World via changes in currency exchange rates and unequal exchange of goods.

This is why we call for international exchange rates based on a fixed basket of goods, to put an end to this form of wealth transfer under imperialism. This is also why the U.$. imperialists were worried about Saddam Hussein ceasing to use the U.$. dollar as the standard currency for oil sales in Iraq.

While a much smaller factor in all this, it is also worth noting that the internal semi-colonies took on more of the wealth loss (proportionally) than the white nation in the United $tates. From 2007 to 2013, the median New Afrikan and Raza household wealth both decreased by 42%, compared to white household wealth which was only down 26% over that period.(4)

How did we bounce back?

The Credit Suisse report notes that the strong growth in household wealth in the United $tates following the decline in 2008 did not accompany a similar increase in income rates. If Amerikan household wealth bounced back on its own then we’d expect to see people making more income from their increased work and productivity. But this was not the case. So did this wealth just fall from the sky? No, it turns out this Amerikan prosperity comes from the invisible transfer of wealth from the Third World to the First World that MIM’s critics have been denying the existence of for decades.

Before the wealth-transfer-deniers stop reading in disgust, let me acknowledge a couple things. The increase in household wealth from 2013 to 2014 was mostly due to “market capitalization” as opposed to housing prices and exchange rates (three important factors affecting short-term shifts in wealth according to Credit Suisse). While a larger number of the U.$. population is active shareholders than most countries, this would still indicate that the increase largely favored the wealthier within the rich countries. Exchange rates affect everyone in a country, and rising housing prices help the home owners (over 64% of people in the United $tates) accumulate wealth without having to work. (Homeownership has dropped significantly since 2005 when it was almost 70%, disproportionately affecting oppressed nations who on average have much less wealth than white Amerikans.(5)) “Market capitalization” benefits those in finance capital (including most retirement investments that are quite common in the United $tates), and would lead us to infer that while wealth in the United $tates has exceeded pre-2008 levels, it is less equally distributed than it was then.

Another indication of this skew in wealth distribution is that the high ratio of wealth to income in the United $tates in recent years is approaching the level of the Great Depression. This, of course, is one of the inherent contradictions of capitalism that Marx described in great detail: wealth tends to accumulate in the hands of the few, but this creates problems for circulation of capital, which the whole system is dependent on. So Amerikans are not in the clear; rather we would expect actual serious economic hardship in the near future.

Looking internationally, Credit Suisse shows median household wealth to be about the same in 2014 as it was in 2008, with peaks in 2007 and 2010. Meanwhile the top 10% has increased its wealth since 2008 and the top 1% even moreso. So the distribution of wealth is getting more uneven. The only problem for the argument of our Amerikan nationalists is that the majority of Amerikans are in that top 10%.

Amerikans Are Rich

One of the basic rules of captitalism, taught to us by Karl Marx, is that capital tends to accumulate. As I discussed in “Building United Front, Surrounded by Enemies”, others have also shown how wealth in general tends to accumulate even for wage earners. In other words, the richer you are the faster your wealth grows. So yes, the 1% in the United $tates is getting richer faster than the other 99%. But those 99% of Amerikans (on average) are still getting richer as the majority of the world does not. The current balance of wealth shows that the difference between nations is more meaningful than the difference within nations.

Let us indulge in some more numbers given to us from the Credit Suisse report, which looks at household wealth across the whole world. The net worth per adult has reached a new high of an average of 56,000 U.$. dollars (USD) worldwide. The median wealth per adult in the United $tates and Germany are just below this level at US 54,000 and USD 53,000. The median is, of course, a much better indicator of the typical than the average (which was USD 348,000 in the United $tates). While your typical Amerikan or German has the amount of wealth one would expect if distribution were equal globally, your typical African or South Asian has wealth that is around 2% of that. (USD 679 in Africa, and USD 1,006 in India)

The number of people in this lower group is highlighted by the estimate that having USD 3,650 of wealth puts one in the top 50% of wealth holders worldwide. Again, if we distributed the wealth equally today, that point would be USD 56,000. But there are so many people with wealth below USD 3,650 that that is the level for the typical persyn (or median) in the entire world.

For Europe and North America combined, the best estimate given for the imperialist countries, 64% of adults are in the top 10% by wealth. It should be noted that the richest 10% of adults own 87% of global wealth. In contrast, 70% of the world’s people own less than 3% of the world’s wealth, averaging less than USD 10,000 per adult.

In the past we’ve cited numbers based on income that give similar results, and actually put all employed Amerikans in the top 13% richest by income, with the vast majority being in the top 10%. Wealth will always be more concentrated than income, because people can have incomes without ever accumulating wealth. Incomes are generally necessary in capitalist society, while wealth is not. In contrast to people who have nothing to lose but their chains (because they own no wealth), the majority of white Amerikans have wealth that is much greater than their annual income, which is quite high to begin with.

U.$. Internal Semi-Colonies

Of course, there are a number of nations within the United $tates, and New Afrikan and Raza median wealth is far below their median income, which is already less than white Amerikans. Recent numbers from Pew Research Center give median household wealth of white Amerikans at $141,900 in 2013. New Afrikan households, meanwhile, come in at $11,000, with the gap between Raza househoulds has been more consistent, as Raza median household wealth was $13,700 for 2013. One factor for the widening gaps is that white households are much more likely to own stocks (and remember that market capitalization was high from 2013 to 2014). Another factor is that oppressed nation home ownership decreased 6.5%, compared to white ownership, which only fell 2% between 2010 and 2013.(4) Wealth per adult for New Afrikans and Raza in the United $tates was not readily available for a direct comparison to the international figures in the Credit Suisse report. But it is clear that the median wealth per adult would be well above the global median of USD 3,650. In other words, the typical New Afrikan or Raza in the United $tates has more wealth than over 50% of the world’s population. And if you look at income, they’re doing even better.

Imperialists Power and Wealth

China’s increase in millionaires, massive growth in middle income populations, and resilience against currency depreciation depicted by Credit Suisse all point to its emergence as a center of finance capital. Yet, over 90% of the millionaires in the world today are in the traditional imperialist countries, with the United $tates leading the way with 41%. While Japan used to compete in this category, in 2014 the U$A stands far above the rest with more than 4 times the number of millionaires in Japan. Of those with wealth greater than USD 50 million, 49% are U.$. citizens, with China as the very distant second in this category. Later this report predicts China will overtake Japan as second wealthiest economy by 2019.

On balance, global wealth increases. Wealth is a product of labor, and so as more people are born and work, and a certain portion of the value they create is accumulated (as machines, buildings, infrastructure, etc) rather than consumed (as food, clothes, electronics, etc) the total wealth of the world grows. War and other disasters can destroy accumulated wealth. The Credit Suisse report goes back to 2000, and shows total wealth more than doubling since then. An increasing rate of wealth accumulation would be expected as the forces of production advance with a growing population. Potentially more people working and doing so more efficiently would create greater wealth. However, our analysis predicts that the expansion of production under capitalism has already peaked some time ago. Credit Suisse subtracts out the effect of population growth and still comes up with a 77% increase in wealth over that period. Why so much?

Marx described different economic systems as being defined by a contradiction between the forces of production and the relations of production. When a new organization of labor is first introduced it would increase the forces of production (it brings new ways of doing things so that more work can be done with the same number of resources as before). Eventually, under any class system, the relations of production begin to drag down this progress. As class contradictions increase, so does the contradiction between relations of production and forces of production. So, while capitalism brought a great boom in production a hundred years ago, the limits of expansion are being met and contradictions, such as the ones that triggered the crisis of 2008, are limiting its progressive elements. What all the discussion around 2008 brought to light was the elaborate schemes that had evolved within finance capital markets in recent decades to create and circulate wealth. When they “create” wealth it is usually by expanding credit. So this is not real wealth creation, as when people transform their labor into wealth by constructing a building. As wealth in the form of credit expands faster than wealth in the form of real goods, you get problems where the credit can’t be paid off. The “bubbles” that are blamed for such crisis are also behind the steep increase in overall wealth since 2000 shown in this report.

In summary, global wealth dropped a lot in 2007 and has bounced back bigger than ever a few years later. Marx predicted higher highs and lower lows in the economy as contradictions heightened. Therefore we expect volatility to increase as finance capital dominates the economy more and more, and for there to be bigger drops in wealth that impact the imperialist countries more because there is not enough cushion next time.

Amerikans get more stuff

In my previous article on U.$. wealth I made sure to discuss the consumption rates of Amerikans as well, to show that this isn’t just academic number crunching and to combat those who argue that it’s just a higher cost of living here that explains our higher incomes. Actually Amerikans get to consume a lot more stuff than other people, to the detriment of the health of our planet. One more recent example of this was the response to lower gasoline prices for Amerikans thanks to a market working in their favor. In November 2014, four out of the top five selling vehicles were gas guzzling trucks or SUVs. Demand for two of these gas guzzlers was up 9.6% in November, compared to an overall increase of 1.3% in car sales.(6) As the capitalists produce the most inefficient vehicles they can get away with to keep consumption rates up, Amerikans jump right on board as soon as they get a little relief at the gas pump. Who cares about global warming when you can afford to blast your air conditioner all day long anyway? While Amerikans enjoy lifestyles far beyond what most people can dream of, their bourgeois individualism reaks havoc on the balance of ecological systems that all life depends on. This is another major contradiction threatening the stability of the current socio-economic system.

The economic system is tied to social factors like war and the impacts of ecological destruction. All of these factors interact with each other, putting imperialism in an ever more precarious situation. It is the task of the proletariat and their allies to understand these dynamics and harness the social forces at play to address these contradictions by putting an end to the chaotic system of imperialism and building a new socialist world system in the interests of all.

A couple weeks ago National Public Radio (NPR) aired a series called “guilty and charged” that talked about the way states are charging defendants and even criminalizing them for not paying court fees.

The series followed and interviewed different people who were caught in this cycle of repetitive imprisonment. A couple of facts are worth mentioning, particularly that in New Jersey 4,000 people surrendered themselves to pay for fines. That is, they got arrested for a misdemeanor and can’t pay court fees so they get issued a warrant for their arrest. These charges can be settled with a reduced payment or a couple months in jail.

In essence the poor are being not only criminalized and imprisoned for being poor but punished by an injustice system that is not blind! Forty-one states now charge room and board for people in county jails, forty-three states charge a defendant for a public defender. In a supposed democracy where everyone is equal before the law, this is not only a complete farce but a system put in place to check oppressed nations, and more so poor people of oppressed nations. Although mention was given how in 40 years the prison population has boomed 400% and the rise can be attributed to Richard Nixon in the 70s for his “war on drugs,” there was not much content on how there is a political context to this high incarceration of oppressed nations.

It’s no secret that the poor and marginalized will have a harder time paying court fees, and as mentioned earlier, oppressed Blacks and Latinos are most likely to end up incarcerated, furthering a system of criminalization.

Most oppressed nations know first hand the injustice system in the United $tates. As there is no profit from imprisonment to U.$. imperialism, the rise of imprisonment is not for profits but for political reasons. The high cost of imprisonment is taking its toll on the department of justice, county jails and tax payers. It’s likely that defendants will be charged more and penalized even more for not being able to pay these charges.

While agitation, protest and attention should be given to combat this issue along with a long list of other “wrongs,” a reformist attitude wil only go so far. People should get into a movement to overthrow this imperialist system and install a more just society in a socialist manner.