imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List




IMC Network:

Original Cities

www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities

www.indymedia.org africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

Where do the moneylenders get their money?

by Richard Mellor Monday, May. 14, 2007 at 2:49 AM
aactivist@igc.org

Accepting that labor creates all wealth alone will not open the road to our emancipation. Understanding how it creates it is paramount.

The May 21st issue of Business Week has a special report on what it calls, “The Poverty Business.” In actuality it would be better titled, “The Money Lending Business,” because this is what it is really about. The piece follows in the wake of the collapse of the sub-prime mortgage industry, the sub-prime being the poor, those with bad or no credit; in reality, the millions of working people already raped by the system, from war veterans to the disabled.

The focus this time is other commodities necessary for our survival---transportation and education. The motive for capitalist production is profit, an integral part of its realization being the circulation of commodities. But millions of people do not receive enough in wages to buy what is the dominant means of transportation in US society, the auto. Public transportation, potentially a far more efficient and environment friendly means of getting around is not profitable in the main, so it is out. And education in capitalist society (and we are in the belly of the beast here) is not a means for advancing the collective good but of increasing the wages of the individual; it too, is a commodity to be bought and sold.

The present stage of capitalist production is one dominated by the moneylender. The moneylenders have huge institutions where their capital is stored and through which it is used to increase itself, to increase the wealth of its owner. Banks, holding companies, Private Equity firms, these are all such institutions and they compete with each other for that role.

Business Week, a journal of big capital, is focusing this time on some of their smaller colleagues, moneylenders that cater to the working poor much like the sub-prime moneylenders that borrowed money from the bigger guys then lent it again to people who needed homes. It gives an example of Roxanne Tsosie, a Native American woman in Albuquerque, New Mexico who needed a car for her new job that paid ,000 a year. Like the sub-prime guys, a lower layer of moneylenders has sprung up catering to the poor and low waged people that the big guys neglected because the risk wouldn't be worth it. But an executive in a firm that did tax returns for low-income workers makes it clear, “We focused on the low hanging fruit,” he boasts.

Ms Tsosie went to a used car dealership that specializes in selling cars to poor people in need and lending them the money to buy them. Ms Tsosie bought a 1999 Saturn with 103,000 miles and was no doubt happy that she would be able to get to work and buy the things she needed for her and her family. Having little money, she borrowed the purchase price from the dealer, ,922, at 24.9% interest. The dealer had informed her that the payments would be 0 a month but she later found that the payments were bi-monthly. She forked over 0 before it was evident she couldn't cope and the dealer kept the 0 and got the car back. He eventually returned the 0 with an apology, but as Business Week points out, “He promised to return the money (and later does). In most transactions of course, there's no reporter on the scene asking questions.”

There are countless other victims. The payday moneylenders that workers find necessary because they are not paid enough to buy their necessities and a few other items that make life tolerable, hover on the sidelines ready to charge exorbitant interest on loans. Payday lenders hanging around military establishments have charged as much as 800% to those who the government claims to love so much because they are so “loyal” and put their lives on the line for the nation. The practice has so embarrassed the politicians of big business given the loss of life in Iraq, that they have moved to curb the excesses putting a cap on interests rates.

We are all victims of the moneylenders; from the small business owner to better paid workers, we are all ripped off, living an insecure existence in a cycle of debt; never being really free of them. As more and more people are driven into poverty and the wealth gap increases, it also means more crime and drug abuse and that is also a hindrance to profit making. Prisons have been looked upon and to a degree have been a somewhat lucrative way of dealing with this problem, but this is turning out to be a nightmare as the US has some 2 million workers in prisons, bested only by China. But most worrying of all to the capitalist class is increased politicization of workers, something the prisons were supposed to deter but often increase.

One of they ways they divert attention from themselves and the system itself is through ideological propaganda. One victim in Business Week's report lost her ,000 a year job and decided to go to culinary school to improve her situation. Three years later the woman has a degree but was unable to find a job as a chef that paid more than .50 an hour; not enough to handle the ,000 student loan debt that is “accruing interest at 18%.” according to BW. She owes Sallie May, the once public and now private mortgage company 3 a month, and has gone back to answering phones for .00 an hour.

The effect of the ideological warfare waged against us by big business through their control of the media, the education system and all forms of mass communication is clearly seen in the above woman's response to her situation: “I can't see a way out of the mess I inadvertently created,” she tells Business Week. She blames herself for a situation she finds herself in, but it is a situation over which she had little control and certainly is not responsible for in any real sense.

Capitalist society teaches that we are all equal and that what we need is out there if we want it. We are in control of our own destiny. If we accept this view of society, and many people do in one way or another; what happens when we can't pay the rent, can't feed the kids, can't find a job? We blame ourselves. If I were smarter or prettier; not such a fool. I must be a failure otherwise I would have the things they tell me I should have. I would be able to get a job, get an education or buy my children something nice for Christmas; I would have a car. “I always make the wrong choices.”

This is the result of accepting their ideology, of accepting their view of the world. We begin to blame ourselves, hate ourselves; we internalize the anger. Sure we make individual choices, but as someone once said, we make choices but these choices are more often than not made within circumstances not of our own choosing. A young American soldier shoots a teenager in Baghdad who comes too close. He made that choice, but he did not choose to create the circumstances in which he made it, and most likely would never have done so. The crisis in families and personal relations has its roots in this objective situation and not in the failure of the individual or the so-called breakdown of morals.

After reading the Business Week article, the reader might draw the conclusion that the victim could have not borrowed the money. This is true, but what were the consequences and what were the options?

The question workers have to ask ourselves is: where does the money that they lend us come from? What is capital we must ask? Where does it come from? How did the bank and then the car dealer come upon this money?

Marx explained that capital is “accumulated labor.” Labor creates all wealth. How does it create wealth? It creates wealth through the process of production, in the exchange that takes place between the worker and the capitalist, between different classes; one class that owns capital and the other that has nothing to sell but their ability to work.

Marx asks, “What is it that takes place between capitalist and wage laborer (worker)? He answers his own question: The laborer receives means of subsistence (in the form of wages) in exchange for his labor power; but the capitalist receives, in exchange for his means of subsistence, labor, the productive activity of the worker, the creative force by which the worker not only replaces what he consumes, but* also gives to the accumulated labor a greater value than it previously possessed.”

The increased value of the capital expanded is the aim of the capitalist and it is his property, not the property of the worker whose labor power produced it.

Capital is, among other things, accumulated labor, but accumulated labor is not always capital. If we look at it this way, economists or not, we know we create wealth; it comes from somewhere. Society exists through our activity with nature that produces the necessities of life and more. All of the products of our creation as accumulated labor, as values and the product of past work; this social product can be used to the betterment of society. We could have free transportation. Everyone could have food, housing, an education etc. The use of this past labor could be determined in a collective way based on the needs of society. In this case, this accumulated labor is not capital. It is accumulated labor serving living labor for the benefit of all.

But in the capitalist mode of production, the class that creates wealth does not own it. The accumulated labor is used not to serve living labor, not for the benefit of society as a whole, but as a means of preserving and multiplying its value, of multiplying itself for its owner, the capitalist. Presently, the rate of exploitation and the level of productivity of labor are such that the world is awash with wealth, with capital.

“The liquidity lapping over all parts of the world has enabled the dramatic expansion of lending to the working poor”, writes Business Week. But it is not only the working poor. There is so much wealth, so much capital that the capitalist class doesn't know what to do with it. Some of it is being used for new production in places like China and other parts of Asia, but much of it is being lent back to us. It is the great supply of capital that is making credit so cheap and fueling growth. It is credit that is allowing US workers to continue to consume at the rate we do. The wealth in the last analysis is contained within the commodity and is realized through its sale, something credit facilitates, thus, we live in a 24-hour marketplace.

Money lent is a commodity and is lent at a price. Moneylenders lend it to other capitalists, and they lend it to the poor at usually higher rates.

The important issue for us as workers, as non-capitalists, is to break from their thinking, to reject their reality, which is not how things are, but an illusion in order to obscure the theft. There was surplus in slave and feudal economies that was stolen by the ruling class; no one today would deny that these systems were exploitive. In that regard, capitalists are no different, they simply have a different method.

So when we borrow money from them we are paying for the use of the product of our own collective labor. It's ours. All efforts to eradicate poverty or change society for the better, even partial revolutions that make major social changes, will never solve these problems until those who produce wealth own it and decide collectively how it will be used.

“Mutual dissimulation, hypocrisy and sanctimoniousness are carried to extreme lengths, so that on the man without credit is pronounced not only the simple judgment that he is poor, but in addition a pejorative moral judgment that he possesses no trust, no recognition, and therefore is a social pariah, a bad man, and in addition to his privation, the poor man undergoes this humiliation and the humiliating necessity of having to ask the rich man for credit.”

Marx: Comments on James Mill 1844

(1) The Poverty Business: Business Week, 5-21-07: http://www.businessweek.com

(2) John T Hewitt: Jackson Hewitt Tax Service Inc.

(*) By consumption Marx means the use, by the worker through the labor process, of the raw material supplied by the capitalist.

Richard Mellor

AFSCME 444 retired

5-12-07

Report this post as:

Local News

Change Links September 2018 posted S02 10:22PM

More Scandals Rock Southern California Nuke Plant San Onofre A30 11:09PM

Site Outage Friday A30 3:49PM

Change Links August 2018 A14 1:56AM

Setback for Developer of SC Farm Land A12 11:09PM

More problems at Shutdown San Onofre Nuke J29 10:40PM

Change Links 2018 July posted J09 8:27PM

More Pix: "Families Belong Together," Pasadena J02 7:16PM

"Families Belong Together" March, Pasadena J02 7:08PM

Short Report on the Families Belong Together Protest in Los Angeles J30 11:26PM

Summer 2018 National Immigrant Solidarity Network News Alert! J11 6:58AM

Watch the Debate: Excluded Candidates for Governor of California M31 5:20AM

Change Links June 2018 posted M28 7:41AM

The Montrose Peace Vigil at 12 Years M22 8:01PM

Unity Archive Project M21 9:42AM

Dianne Feinstein's Promotion of War, Secret Animal Abuse, Military Profiteering, Censorshi M17 10:22PM

CA Senate Bill 1303 would require an independent coroner rather than being part of police M10 9:08PM

Three years after OC snitch scandal, no charges filed against sheriffs deputies M10 8:57PM

California police agencies violate Brown Act (open meetings) M02 8:31PM

Insane Company Wants To Send Nuke Plant Waste To New Mexico A29 11:47PM

Change Links May 2018 A27 8:40AM

Worker-Owned Car Wash on Vermont Closed A27 5:37AM

GUIDE TO REBEL CITY LOS ANGELES AVAILABLE A13 12:39AM

lausd whistle blower A11 6:58AM

Website Upgrade A10 10:02AM

Help KCET and UCLA identify 60s-70s Chicano images A04 8:02PM

UCLA Luskin: Casting Youth Justice in a Different Light A02 6:58PM

Change Links April 2018 A01 6:27PM

More Local News...

Other/Breaking News

Addendum: Benjamin Tucker American Mutualist: Tucker Did Not Advocate Voting in Businesses S25 11:45PM

OUR HOUSE Grief Support Center Celebrates 25 Years with the House of Hope Gala S24 7:10PM

Against the Rent Madness and For a Nonprofit Orientation! S24 11:56AM

Cybermonde, cyberguerre, cyberespace, cyberterrorisme S24 6:35AM

Paraphysique de psychosomatique S22 6:58AM

Chuck Grassley: Women Abusing, Animal Murdering, Illegal War Supporting Criminal S22 2:58AM

Finance Capitalism and the Digital Economy S21 4:45PM

Muselières syndicales, muselières patronales S21 7:19AM

Jeff Bezos, Amazon, The Washington Post, Whole Foods, Etc S21 2:50AM

Why Choose Nut Milk Over Cows' Milk S21 1:01AM

Antrhopocène, le grand effondrement S19 9:53AM

Abolir l'économie S18 11:18AM

The Dictatorship of Corporations S17 5:26PM

18 Lethal Consequences Of Hunting S17 3:13PM

Paraphysique de l'outplacement déontologue S15 6:51AM

Shopping du bashing S14 8:42AM

After Lehman Brothers, Experts Say Global Financial Crisis Can Happen Again S13 8:28PM

“Animaniacs in Concert!” Starring Voice Legend Rob Paulsen S12 9:30PM

Probabilités de fin d'humanité S12 6:49AM

Florida Area of Migrant Farmworkers Denied Right to Construct Health Clinic near NaplesCIW S11 2:57AM

Steer clear of work morality! S09 12:10PM

The Shortwave Report 09/07/18 Listen Globally! S06 11:23PM

August 2018 Honduras Coup update S06 12:28PM

Brett Kavanaugh Filled The 5th Circuit With Execution Judges S06 6:14AM

Augusta Georgia Woman Gets 5 Year Prison Sentence for Writing About Russians Crime Acts S05 8:29AM

Paraphysique de contextualité S05 8:29AM

Crisis Regulation in Global Capitalism S03 3:39PM

Ex-voto de réification S03 10:24AM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy