A People's History of the United States
There were other citizens, those who tried to hold on to ideas and ideals still remembered from the sixties and early seventies, not just by
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recollecting but by acting. Indeed, all across the country there was a part of the public unmentioned in the media, ignored by political leaders— energetically active in thousands of local groups around the country. These organized groups were campaigning for environmental protection or women's rights or decent health care (including anguished concern about the horrors of AIDS) or housing for the homeless, or against military spending.
This activism was unlike that of the sixties, when the surge of protest against race segregation and war became an overwhelming national force. It struggled uphill, against callous political leaders, trying to reach fellow Americans most of whom saw little hope in either the politics of voting or the politics of protest.
The presidency of Jimmy Carter, covering the years 1977 to 1980, seemed an attempt by one part of the Establishment, that represented in the Democratic party, to recapture a disillusioned citizenry. But Carter, despite a few gestures toward black people and the poor, despite talk of "human rights" abroad, remained within the historic political boundaries of the American system, protecting corporate wealth and power, maintaining a huge military machine that drained the national wealth, allying the United States with right-wing tyrannies abroad.
Carter seemed to be the choice of that international group of powerful influence-wielders—the Trilateral Commission. Two founding members of the commission, according to the Far Eastern Economic Review— David Rockefeller and Zbigniew Brzezinski—thought Carter was the right person for the presidential election of 1976 given that "the Watergate-plagued Republican Party was a sure loser.. .."
Carter's job as President, from the point of view of the Establishment, was to halt the rushing disappointment of the American people with the government, with the economic system, with disastrous military ventures abroad. In his campaign, he tried to speak to the disillusioned and angry. His strongest appeal was to blacks, whose rebellion in the late sixties was the most frightening challenge to authority since the labor and unemployed upsurges in the thirties.
His appeal was "populist"—that is, he appealed to various elements of American society who saw themselves beleaguered by the powerful and wealthy. Although he himself was a millionaire peanut grower, he presented himself as an ordinary American farmer. Although he had been a supporter of the Vietnam war until its end, he presented himself as a sympathizer with those who had been against the war, and he appealed to many of the young rebels of the sixties by his promise to cut the military budget.
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In a much-publicized speech to lawyers, Carter spoke out against the use of the law to protect the rich. He appointed a black woman, Patricia Harris, as Secretary of Housing and Urban Development, and a black civil rights veteran, Andrew Young, as ambassador to the United Nations. He gave the job of heading the domestic youth service corps to a young former antiwar activist, Sam Brown.
His most crucial appointments, however, were in keeping with the Trilateral Commission report of Harvard political scientist Samuel Huntington, which said that, whatever groups voted for a president, once elected "what counts then is his ability to mobilize support from the leaders of key institutions." Brzezinski, a traditional cold war intellectual, became Carter's National Security Adviser. His Secretary of Defense, Harold Brown, had, during the Vietnam war, according to the Pentagon Papers, "envisaged the elimination of virtually all the constraints under which the bombing then operated." His Secretary of Energy, James Schlesinger, as Secretary of Defense under Nixon, was described by a member of the Washington press corps as showing "an almost missionary drive in seeking to reverse a downward trend in the defense budget." Schlesinger was also a strong proponent of nuclear energy.
His other cabinet appointees had strong corporate connections. A financial writer wrote, not long after Carter's election: "So far, Mr. Carter's actions, commentary, and particularly his Cabinet appointments, have been highly reassuring to the business community." Veteran Washington correspondent Tom Wicker wrote: "The available evidence is that Mr. Carter so far is opting for Wall Street's confidence."
Carter did initiate more sophisticated policies toward governments that oppressed their own people. He used United Nations Ambassador Andrew Young to build up good will for the United States among the black African nations, and urged that South Africa liberalize its policies toward blacks. A peaceful settlement in South Africa was necessary for strategic reasons; South Africa was used for radar tracking systems. Also, it had important U.S. corporate investments and was a critical source of needed raw materials (diamonds, especially). Therefore, what the United States needed was a stable government in South Africa; the continued oppression of blacks might create civil war.
The same approach was used in other countries—combining practical strategic needs with the advancement of civil rights. But because the chief motivation was practicality, not humanity, there was a tendency toward token changes—as in Chile's release of a few political prisoners. When Congressman Herman Badillo introduced in Congress a proposal that required the U.S. representatives to the World Bank and
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other international financial institutions to vote against loans to countries that systematically violated essential rights, by the use of torture or imprisonment without trial, Carter sent a personal letter to every Congressman urging the defeat of this amendment. It won a voice vote in the House, but lost in the Senate.
Under Carter, the United States continued to support, all over the world, regimes that engaged in imprisonment of dissenters, torture, and mass murder: in the Philippines, in Iran, in Nicaragua, and in Indonesia, where the inhabitants of East Timor were being annihilated in a campaign bordering on genocide.
The New Republic magazine, presumably on the liberal side of the Establishment, commented approvingly on the Carter policies: ". . . American foreign policy in the next four years will essentially extend the philosophies developed ... in the Nixon-Ford years. This is not at all a negative prospect.... There should be continuity. It is part of history...."
Carter had presented himself as a friend of the movement against the war, but when Nixon mined Haiphong harbor and resumed bombing of North Vietnam in the spring of 1973, Carter urged that "we give President Nixon our backing and support—whether or not we agree with specific decisions." Once elected, Carter declined to give aid to Vietnam for reconstruction, despite the fact that the land had been devastated by American bombing. Asked about this at a press conference, Carter replied that there was no special obligation on the United States to do this because "the destruction was mutual."
Considering that the United States had crossed half the globe with an enormous fleet of bombers and 2 million soldiers, and after eight years left a tiny nation with over a million dead and its land in ruins, this was an astounding statement.
One Establishment intention, perhaps, was that future generations see die war not as it appeared in the Defense Department's own Pentagon Papers—as a ruthless attack on civilian populations for strategic military and economic interests—but as an unfortunate error. Noam Chomsky, one of the leading antiwar intellectuals during the Vietnam period, looked in mid-1978 at how the history of the war was being presented in the major media and wrote that they were "destroying the historical record and supplanting it with a more comfortable story... reducing 'lessons' of the war to the socially neutral categories of error, ignorance, and cost."
The Carter administration clearly was trying to end the disillusionment of the American people after the Vietnam war by following foreign
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policies more palatable, less obviously aggressive. H
ence, the emphasis on "human rights," the pressure on South Africa and Chile to liberalize their policies. But on close examination, these more liberal policies were designed to leave intact the power and influence of the American military and American business in the world.
The renegotiation of the Panama Canal treaty with the tiny Central American republic of Panama was an example. The canal saved American companies $1.5 billion a year in delivery costs, and the United States collected Si 50 million a year in tolls, out of which it paid the Panama government $2.3 million dollars, while maintaining fourteen military bases in the area.
Back in 1903 the United States had engineered a revolution against Colombia, set up the new tiny republic of Panama in Central America, and dictated a treaty giving the United States military bases, control of the Panama Canal, and sovereignty "in perpetuity." The Carter administration in 1977, responding to anti-American protests in Panama, decided to renegotiate the treaty. The New York Times was candid about the Canal: "We stole it, and removed the incriminating evidence from our history books."
By 1977 the canal had lost military importance. It could not accommodate large tankers or aircraft carriers. That, plus the anti-American riots in Panama, led the Carter administration, over conservative opposition, to negotiate a new treaty which called for a gradual removal of U.S. bases (which could easily be relocated elsewhere in the area). The canal's legal ownership would be turned over to Panama after a period. The treaty also contained vague language which could be the basis for American military intervention under certain conditions.
Whatever Carter's sophistication in foreign policy, certain fundamentals operated in the late sixties and the seventies. American corporations were active all over the world on a scale never seen before. There were, by the early seventies, about three hundred U.S. corporations, including the seven largest banks, which earned 40 percent of their net profits outside the United States. They were called "multinationals," but actually 98 percent of their top executives were Americans. As a group, they now constituted the third-largest economy in the world, next to the United States and the Soviet Union.
The relationship of these global corporations with the poorer countries had long been an exploiting one, it was clear from U.S. Department of Commerce figures. Whereas U.S. corporations in Europe between 1950 and 1965 invested $8.1 billion and made $5.5 billion in profits, in Latin America they invested $3.8 billion and made
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$11.2 billion in profits, and in Africa they invested $5.2 billion and made $14.3 billion in profits.
It was the classical imperial situation, where the places with natural wealth became victims of more powerful nations whose power came from that seized wealth. American corporations depended on the poorer countries for 100 percent of their diamonds, coffee, platinum, mercury, natural rubber, and cobalt. They got 98 percent of their manganese from abroad, 90 percent of their chrome and aluminum. And 20 to 40 percent of certain imports (platinum, mercury, cobalt, chrome, manganese) came from Africa.
Another fundamental of foreign policy, whether Democrats or Republicans were in the White House, was the training of foreign military officers. The Army had a "School of the Americas" in the Canal Zone, from which thousands of military leaders in Latin America had graduated. Six of the graduates, for instance, were in the Chilean military junta that overthrew the democratically elected Allende government in 1973. The American commandant of the school told a reporter: "We keep in touch with our graduates and they keep in touch with us."
And yet the United States cultivated a reputation for being generous with its riches. Indeed, it had frequently given aid to disaster victims. This aid, however, often depended on political loyalty. In one six-year drought in West Africa, 100,000 Africans died of starvation. A report by the Carnegie Endowment said the Agency for International Development (AID) of the United States had been inefficient and neglectful in giving aid to nomads in the Sahel area of West Africa, an area covering six countries. The response of AID was that those countries had "no close historical, economic, or political ties to the United States."
In early 1975 the press carried a dispatch from Washington: "Secretary of State Henry A. Kissinger has formally initiated a policy of selecting for cutbacks in American aid those nations that have sided against the U.S. in votes in the United Nations. In some cases the cutbacks involve food and humanitarian relief."
Most aid was openly military, and by 1975, the United States exported $9.5 billion in arms. The Carter administration promised to end the sale of arms to repressive regimes, but when it took office the bulk of the sales continued.
And the military continued to take a huge share of the national budget. When Carter was running for election, he told the Democratic Platform Committee: "Without endangering the defense of our nation or commitments to our allies, we can reduce present defense expendi-
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tures by about 5 to 7 billion dollars annually." But his first budget proposed not a decrease but an increase of $10 billion for the military. Indeed, he proposed that the U.S. spend a thousand billion dollars (a trillion dollars) in the next five years on its military forces. And the administration had just announced that the Department of Agriculture would save $2 5 million a year by no longer giving free second helpings of milk to 1.4 million needy schoolchildren who got free meals in school.
If Carter's job was to restore faith in the system, here was his greatest failure—solving the economic problems of the people. The price of food and the necessities of life continued to rise faster than wages were rising. Unemployment remained officially at 6 or 8 percent; unofficially, the rates were higher. For certain key groups in the population—young people, and especially young black people—the unemployment rate was 20 or 30 percent.
It soon became clear that blacks in the United States, the group most in support of Carter for President, were bitterly disappointed with his policies. He opposed federal aid to poor people who needed abortions, and when it was pointed out to him that this was unfair, because rich women could get abortions with ease, he replied: "Well, as you know, there are many things in life that are not fair, that wealthy people can afford and poor people cannot."
Carter's "populism" was not visible in his administration's relationship to the oil and gas interests. It was part of Carter's "energy plan" to end price regulation of natural gas for the consumer. The largest producer of natural gas was Exxon Corporation, and the largest blocs of private stock in F.xxon were owned by the Rockefeller family.
Early in Carter's administration, the Federal Energy Administration found that Gulf Oil Corporation had overstated by $79.1 million its costs for crude oil obtained from foreign affiliates. It then passed on these false costs to consumers. In the summer of 1978 the administration announced that "a compromise" had been made with Gulf Oil in which Gulf agreed to pay back $42.2 million. Gulf informed its stockholders that "the payments will not affect earnings since adequate provision was made in prior years."
The lawyer for the Energy Department who worked out the compromise with Gulf said it had been done to avoid a lengthy and costly lawsuit. Would the lawsuit have cost the $36.9 million dropped in the compromise? Would the government have considered letting off a bank robber without a jail term in return for half the loot? The settlement was a perfect example of what Carter had told a meeting of lawyers during his presidential campaign—that the law was on the side of the rich.
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The fundamental facts of maldistribution of wealth in America were clearly not going to be affected by Carter's policies, any more than by previous administrations, whether conservative or liberal. According to Andrew Zimbalist, an American economist writing in Le Monde Diplomatique in 1977, the top 10 percent of the American population had an income thirty times that of the bottom tenth; the top 1 percent of the nation owned
33 percent of the wealth. The richest 5 percent owned 83 percent of the personally owned corporate stock. The one hundred largest corporations (despite the graduated income tax that misled people into thinking the very rich paid at least 50 percent in taxes) paid an average of 26.9 percent in taxes, and the leading oil companies paid 5.8 percent in taxes (Internal Revenue Service figures for 1974). Indeed, 244 individuals who earned over $200,000 paid no taxes.
In 1979, as Carter weakly proposed benefits for the poor, and Congress strongly turned them down, a black woman, Marian Wright Edelman, director of the Children's Defense Fund in Washington, pointed to some facts. One of every seven American children (10 million altogether) had no known regular source of primary health care. One of every three children under seventeen (18 million altogether) had never seen a dentist. In an article on the New York Times op-ed page, she wrote:
The Senate Budget Committee recently . .. knocked off $88 million from a modest $288 million Administration request to improve the program that screens and treats children's health problems. At the same time the Senate found $725 million to bail out Litton Industries and to hand to the Navy at least two destroyers ordered by the Shah of Iran.
Carter approved tax "reforms" which benefited mainly the corporations. Economist Robert Lekachman, writing in The Nation, noted the sharp increase in corporate profits (44 percent) in the last quarter of 1978 over the previous year's last quarter. He wrote: "Perhaps the President's most outrageous act occurred last November when he signed into law an $ 18 billion tax reduction, the bi:lk of whose benefits accrue to affluent individuals and corporations."
In 1979, while the poor were taking cuts, the salary of the chairman of Exxon Oil was being raised to $830,000 a year and that of the chairman of Mobil Oil to over a million dollars a year. That year, while Exxon's net income rose 56 percent to more than $4 billion, three thousand small independent gasoline stations went out of business.