Moon of Alabama Brecht quote
November 25, 2008
Auto Industry Bailout Scam

by Debs is Dead
lifted from a comment

Well I was interested by Mike Whitney’s comments
on the seeming dissonance on the support the banks and financials are
getting and the complete lack of support for the auto industry bailout.
Yeah yeah I know the American auto industry is a basket case completely
captured by the myth of infinite and cheap hydrocarbons, their
inability to change has stranded them on the beach like an old whale
who doesn’t realise he will die before a tide big enough to float him
off comes again.
But the same can be said of the banks and all the rest of Wall St. They
used outmoded inflexible solutions to an ever-changing environment and
consequently got beached too.

Whitney maintains that the auto industry will be bailed out alright
but not until the big two have been chapter 11’d and the unions broken
along with worker’s entitlements:

So why would GMAC want to become a bank holding company if General
Motors is headed for the chopping block? Could it be that the
government is working out a secret deal with management to put the
company through Chapter 11 (reorganization) just so it can crush the
union and eliminate their pension and health care benefits in one fell
swoop?

You bet. Car workers will be reduced to slave wages just like they
are in sunny Alabama where sharecropping has moved indoors. And–no
surprise–the Democrats are right on board with this labor-busting
charade. The auto industry isn’t going to be shut down. That’s just
more fear-mongering like the blather about martial law and WMD. Detroit
is going to be transformed into a workers gulag; Siberia on Lake
Michigan, which is why Paulson is withholding the $25 billion. It’s
plain old class warfare.

The ultimate sellout by the dems. Those of us who live in nations
where a ‘leftist’ party finally won government during the great
depression where government then introduced the safety nets and
Keynsian economics and a more friendly attitude towards labour unions;
are probably unaware of the horrors introduced by the likes of Ramsay
McDonald as a labour PM in England when the depression hit.

A roundabout way of saying many of us have been brought up to
believe that the pale pink leftish political parties that appeared to
be aligned with ordinary workers during the depression, only became so
aligned against their natural instincts. After they had seen ersatz
socialist political parties like the English labour party crack down on
workers just as bad if not worse than the right wing conservative
parties, but the great recovery promised by the capitalist mouthpieces
never eventuated. So the likes of FDR and Mickey Savage had no choice but to go left, as much as it went against their natural instincts.

Barack Obama and Joe Biden are not the workers’ friends. Neither are
any of the other pseudo working class champions in Congress. They may
have come from the working class although really both Biden and Obama
are products of the bourgeoisie, and even those dem pols who did come
outta housing projects or other extreme poverty, couldn’t wait to get
away from it.

They wear the title "champions of the ordinary people" simply
because the sort of petite bourgeois scaredy cats who hang round the
lower echelons of the rethug party would have chased them off had the
‘working class heroes’ tried to get ahead with the party of one man
against the world (ie extreme selfishness) that more properly suited
their personal ethos, the rethugs. Sure the rethugs do let a few tokens
in but only if the tokens touch their forelocks and don’t scare them,
and don’t try and push Johnny Governorson offa his reserved spot.

Shit sorry bout the digression – the dem party hacks mostly have the
values of the class enemy and will destroy American workers’
entitlements in a heartbeat while claiming this is necessary to keep
the auto industry ‘globally competitive’.

Complete lies- utter bullshit – total distortion – check out how
well car company employees are looked after in Germany or Japan. Even
Korea where auto industry wages rose an average of 15% a year for the
15 years between 87 and 02 and where Kia attempted the same sort of
Chapter 11 scam, the auto workers are much better looked after than
other similar industries. They have strong unions in the other car
manufacturing nations too. Why? Because these fork tongued under snakes
belly high jumpers will never admit it but the success of such a
complex industry such as vehicle manufacturing depends upon a good
working relationship between management and workers. A good formalised
relationship. Formalised by using the democratic structure of the
labour union to facilitate effective consultation.

The lack of competitive car products outta Detroit has nothing to do
with pension plans or dental benefits and everything to do with
shit-house management.

The auto industry executives and their lackeys in Congress along
with old school chums in treasury, figure if they can scare the
workers, then slice and dice their working conditions, while paying off
key unionists with cash or political favours to ensure the auto
industry unions have the balls of a gelded racehorse, then management
will be able to stay in it’s nice little comfort zone safe from the
exigencies of peak oil reality because American auto industry workers
will be the cheapest on the planet.

Who cares if Detroit can only make ‘yank tanks’ if the much lower
labour costs mean the ignorant can justify the relatively high cost of
gas due to inefficient energy usage by offsetting it against the
cheaper purchase price.

Everyday we see items that have a much higher running cost outsell
far cheaper to maintain items. This by citizens who consider themselves
value oriented, because the initial upfront cost of the expensive to
run item is lower than that of the more efficient product.

That is the ‘niche’ the marketers hope to be steering Detroit product into.

Only if ordinary Americans, particularly ordinary members of the dem party, let their representative ‘freckle punch’ them.

Comments

This by anna missed fits the above:

The auto industry, is arguably, the largest functioning and productive sector of the American economy, employing millions and actually producing tangible wealth, while the financial sector can make no such claim, they produce nothing but paper. Why is it that capital is so sacrosanct in America? And why does capital have no national obligation?

Indeed:
In a comment thereto jdp says:

This pap that GM, Ford and Chrysler don’t build cars people want is plan bullshit. As I posted at Moon, people want trucks and trucks have utility. Where I live, if you don’t have a truck, you can’t do things and go places you want, like the lakes, rivers and camps.

Those vehicles, trucks, are where the most value added is and they are the big threes bread and butter. Now, everyone thinks about cars, especially persons in inner cities, and persons who don’t need utility, mainly ivory tower people.

Well I think the second category, most of which are not ivory tower folks, is by and large the bigger one.
When you live in the countryside you may need a truck. Or you may ask your neighbor the four times a year you really need it.
But that is not the reason why so many trucks and SUV are sold in the U.S. The reason for that is a distorted tax structure that was lobbied for by the big-three.

Under the Jobs and Growth Act of 2003, Congress raised the deduction ceiling for these heavy-class vehicles from $25,000 to $100,000, bumped the “bonus deduction” from 30 percent to 50 percent, and left in place the accelerated five-year depreciation schedule. This, in effect, made virtually all three-ton, business-use SUVs fully deductible in the first year. More than 50 vehicles qualified for the tax break.

Congress reversed itself last fall with passage of the American Jobs Creation Act of 2004 and cinched back the SUV loophole from $100,000 to $25,000 while retaining both the 50-percent bonus deduction and the five-year depreciation schedule. The deduction is claimed as a Section 179 expense, meaning you must be in business, filing a Schedule C or corporate tax return, to claim it.
Will the lower expense ceiling stop the heavy-metal stampede? Not likely, says Ronnie Windham, a certified public accountant in Oxford, Miss.
“I don’t think it’s going to affect people’s buying habits. Most people buying SUVs are paying $40,000 or $50,000, so by the time you take the 50 percent bonus deduction and the $25,000 depreciation expense, most of them are still going to write off the full amount.”

It was a (republican) policy decision, supported by the big three, that led to the SUV and truck boom.
The big three jumped on that and sold nearly only trucks and SUVs.

According to the US Bureau of Transit Statistics for 2006 there are 250,851,833 registered passenger vehicles in the US. Out of these roughly 251 million vehicles, 135,399,945 were classified as automobiles, while 99,124,775 were classified as “Other 2 axle, 4 tire vehicles,” presumably SUVs and pick-up trucks. Yet another 6,649,337 were classified as vehicles with 2 axles and 6 tires and 2,169,670 were classified as “Truck, combination.” There were approximately 6,686,147 motorcycles in the US in 2006.

Are there really 99,124,775 people in the U.S. who need vehicles other than passenger vehicle?
Now that economic times get hard, the high life cycle costs of those vehicles will push the consumers into other segments, back to passenger cars. The big three are little prepared for that as they bet the house on the tax-exception and big trucks.
(and they have made a lot of other management mistakes)
A agree with Debs. This is not at all a problem of labor costs. GM pays less in the U.S. for labor than in Germany. But its German part of GM, Opel, is profitable.
But there is overcapacity now in the world-wide market and that will somehow have to be reduced. That can be done without anyone going bankrupt, if the government helps with it.
Universal health care would be a great thing for the car makers. Rebuilding a passenger train net could be a good strategy to employ lots of folks from the auto industry. And so on …

Posted by: b | Nov 25 2008 15:06 utc | 1

Debs, re horrors under Ramsay MacDonald, the main horror for the unions – the Trade Disputes and Trade Union Act – was passed under Baldwin’s Tory government, with little resistance from Ernest Bevin, though MacDonald outdid Bevin in caution when he formed the National Government. Though it has to be said that once he’d done so, the Tories and the Liberals had the whip hand.
What’s interesting to me, though is that at school we were taught, as if it were bloody obvious (and this was in the curriculum, not just as a result of my very pinko school) that the Trade Union movement and especially the General Strike were to do with social justice. An eminently understandable class war, in fact, with the workers occupying the moral high ground.
I don’t believe that’s how the struggle is seen today, if indeed ‘the struggle’ as such even continues in a way that MacDonald or Bevin or even Harold Wilson would understand it.

Posted by: Tantalus | Nov 25 2008 15:23 utc | 2

Well all you Obama supporters better start hitting the panic
button because it looks like four more years of the SOS. Will Obama be a “kinder,gentler” Bush? It sure looks that way with
all the Clinton neoliberals and neocons in his Cabinet. The whole Washington culture of corruption makes it impossible for
any political party to bring about any meaningful change.

Posted by: ecoli | Nov 25 2008 15:51 utc | 3

Great piece, though, Debs. Yes, tragic, isn’t it, that when we desperately need someone like your namesake Eugene, we get a Ramsay MacDonald instead. And yes, I do believe this is about savaging workers’ rights and ensuring that management keeps on getting their eternal blowjob. The Hummer ain’t called the Hummer for nothing.
b, there’s such a lot of shit talked about how everyone who lives outside Brooklyn needs a pickup truck. Yes, they are useful, but no-one who isn’t towing heavy machinery needs a V8 engine. My friend the landscaper/stonemason: yes. My friend the suburban housewife: no. Except that the suburbanite probably has a boat that they tow to the lake, snowmobiles they tow to the trailhead, etc etc. Trucks are by in large an adjunct to the cult of consumer durables. And yes, us country-dwellers need to shift livestock, fodder, 2x4s, etc etc, but you can do most of that in a Subaru – as a working shephard/orchardist of my acquaintance said, if you can’t do it all with a Subaru Forester, you shouldn’t be farming in Vermont. I’ve said this before, but what Detroit should be re-tooling to build is the Ape, but that just doesn’t comply with the big swinging dick fantasy of macho America.

Posted by: Tantalus | Nov 25 2008 15:52 utc | 4

This is the only logical consequence of Capitalism. Big Money (capital) owns the government. So the primary mission of the government has become the care and feeding of Capital, regardless of the consequences to the public.
The sooner the public recognizes this fundamental truth, the sooner we get change we can believe in.

Posted by: JohnH | Nov 25 2008 16:01 utc | 5

I am shocked…shocked…shocked to find out that Barack Obama isn’t a socialist. Who knew? Please define “product of the bourgeoisie”. I am a veteran of the American leftist movement of the 1960’s but I and am a bit rusty on pseudo revolutionary terminology. I do remember being dismissed as “objectively counter revolutionary”, benefiting from “white skin privilege” and having my class status challenged by the little Lenins and Stalins who gravitated into leadership positions through an ability to talk louder and longer than anyone else, but it does look like I will need a refresher course to get up to speed with some of the posts on this blog.
More to the point, why are do so many Marxists come off as bitchaholics?

Posted by: Gareth G | Nov 25 2008 16:29 utc | 6

Outstanding post and commentary by the other MOA’s. worthy of Veblen’s, ‘Institutional Analysis’. Veblen was also the inventor of a little-used but extremely powerful investigative tool called Institutional Analysis. By Veblen’s thinking, the investigation into human understanding has devolved into a study of individuals (Psychology, and sometimes Theology) and groups (Sociology, Cultural Anthropology, etc.) He proposed that a more productive line of inquiry was of the interaction between what he called Institutions (education, banking, the military, agriculture, etc.) Institutional Analysis works for the very simple reason the people who make up Institutions are predisposed or are trained to serve the needs of the Institution. Farmers act like farmers, bankers like bankers, teachers like teachers, etc. for a wide assortment of good reasons. If you can understand those Institutional reasons, predicting the behavior of significant groups of people is possible.
What deb’s has just pointed out is a meta narrative, a template of the ongoing banksterism and corruption of the dominant scopic regime of the corporate elite. An excellent institutional analysis.
How long before we have blackwater(tm) in the role of Pinkertons pinkerton-ish union busting?
And why does this shit keep happening?
One reason may be parallel to anna missed’s and Gaianne’s exchange and other comments, in that, creating an enormous false economy is the only thing left, in addition, Scandal is our growth industry. Revelation of wrongdoing leads not to definitive investigation*, punishment, and expiation but to more scandal. Permanent scandal. Frozen scandal.”
All we see is the guilty being rewarded with commutations, higher offices, talk shows, or bail outs.
*dubiously enforced subpoenas, strongly worded and ignored letters, complicit criminality, for example, the DOJ lawyers (according to the NSA)don’t have high enough security clearance to investigate damn near anything in guise of the national security state.
So DOJ lawyers can’t be trusted with national security, but random AT&T employees can? see how government and corporate seemlessly(and shamelessly) cover each others asses?
this my friends is the beginning of institutional fascism. And so it goes w/the rest of this historical engineered robbery.
Anyone else catch the story on tax payers paying bailing out Abu Gonzales’s Justice Department shenanigans?

The Justice Department has agreed to pay for a private lawyer to defend former Attorney General Alberto Gonzales against allegations that he encouraged officials to inject partisan politics into the department’s hiring and firing practices.

They have so corrupted the system, that you now pay to be strong armed and robbed.
Privatization is in essence the selling of failed government.
Now, what if government was purposely made to fail by those who wish to sell it off? Go talk to one Dick Cheney for the answer.
We are all in Gaza now…

Posted by: Uncle $cam | Nov 25 2008 16:59 utc | 7

Gotta chuckle over this “leftist” vs “pragmatist” food fight. Bigger chuckle remembering Obama’s Wall Street vs Main street populist pandering speech back in September, at as market was in meltdown, and McCain was running around rescuing everything in sight.
Biiiig chuckle, because standing behind Obama were two of the four people, along with Greenspan and Graam, responsible for the economic collapse…Robert Rubin and Lawrence Summers, grinning like they just swallowed the cream. Yes.
And now? Now we have Rubinomics II. With the parasites who invented and promoted the derivatives scam hailed as saviours, as they funnel even more money to pay for their thievery.
That $140 million for Obama bundled by Wall Street gangsters goes a looooooong way.

Posted by: Thrasyboulos | Nov 25 2008 17:42 utc | 8

Just to follow up on b’s cut and paste from anna missed site, I go back to utility. Yes, the person in the suburb or the inner city doesn’t need a truck in most cases. But you can’t pull the family trailer to camping these days with new cars like a 64 Chevy station wagon. Trucks became much like cars in the 1980’s with all the bells and whistles, yet the utility needed for that hard job if needed.
But, farmers, plumbing and heating people, seismic crews, oil field workers, semi tractors, any type of fleets use trucks and large vans.
To do away with the current system we all have to become dirt farmers. I don’t see that happening soon in the US.
The commentators in the press bashing the big three all drive foreign gas hogs and limos and have no idea about the culture of the midwest, mountains states and the south. It is cultural and the media or any ivory tower thinker (don’t get me wrong, I like smart people and we need smarter people setting policy) will not make a dent on the truck culture for a long time even with high fuel prices. Most elite commentators have never had to work an assembly line, I have, never milked cows, I have, never been hunting, I hunt every year, never been in a fight in a redneck bar, I have and started some.
The whole truck culture took over the hotrod culture in the US after the 1970s. The muscle car went out, the pickup came in. Its very hard to change redneck culture.
Anyway, sorry for the rant, but it runs deeper than common sense would have you believe.

Posted by: jdp | Nov 25 2008 17:52 utc | 9

jdp,
Some people need trucks – a whole lot more people need trucks than need boats or campers. But do they honestly need the trucks that are being built for them? A utility vehicle is a utility vehicle. The amount of carpenters around here driving things like Dodge Hemis when they could just as easily get by with a small Toyota or Mazda is ridiculous.
Agreed, though, that it will take a long time to change. But – re commentators not understanding truck culture – you can understand something without approving of it. And btw, I’ve worked with my hands and even been in a fight or two, and even so I find truck culture ridiculous – not incomprehensible, just ridiculous. But there again, I’m a furriner.

Posted by: Tantalus | Nov 25 2008 18:18 utc | 10

Needless to say, Obama is looking like he’s more about continuity and less about change. I see less change taking place with regards to foreign policy. But change in economics looks pretty nonexistent as well. In fact, about the only change I see taking place in the White House is the color of the President’s skin. But considering that Obama’s genes are just as white as they are black, then change in skin color essentally amounts to nothing. So whatever change Obama brings to America will only be skin deep, I’m afraid…:-(

Posted by: Cynthia | Nov 25 2008 18:44 utc | 11

Thanks to Uncle $cam for the reference to Veblen’s “institutional analysis”. Sounds like a more fruitful tool than standard Marxist thought (up to Lenin.) Even though “financial sector” sounds pretty lose to “ruling elite”, the latter just doesn’t do justice to the hydra-headed monster that is continually biting our ass.
The coming depression is going to create some great opportunities for activisim. The point is what language for describing the oppressors will rouse the most people to do the right thing?

Posted by: seneca | Nov 25 2008 18:47 utc | 12

As near as I can tell, movers and shakers of the auto industry were stupid enough to pour more money into the advertising of cars than into the engineering of them…
Granted, American voters may be stupid enough to think that a change in the president’s skin color will automatically bring changes to our country that are more than skin deep. But American consumers aren’t stupid enough to buy cars based on how beautiful they look in teevee ads, instead of how well they operate on the road. And no matter how hard top execs in the auto industry want to believe otherwise, buyers of cars, unlike voters of presidents, really do scratch below the surface of the skin when deciding which car to buy!

Posted by: Cynthia | Nov 25 2008 19:01 utc | 13

Have to agree with jdp (for better or worse, haha) on truck culture – it started in the late 70’s. It was when I bought my first (and only since) new vehicle with wedding money – a ford f100 pickup for $4,000. cash. It lasted about as long as the marriage did, about 10 years and 100thousand miserable endless fixing to no avail miles – and was thus donated most willingly to the new X. Even though I’ve done a lots of contracting type work (for$$) since then, I’ve never had another pickup truck, and have had old volvo’s that could carry more lumber on the roof and tools in the trunk than most pickup’s could in the bed – so I also agree with b that the pickup phenomena is mostly an image thing, rather than a practical necessity. The recent tax incentive on suv’s&trucks is more about trying to save that image market niche as it’s now falling from popularity, and because thats where the biggest profit margins were/are.

Posted by: anna missed | Nov 25 2008 19:23 utc | 14

AM #14: I own a 92 F150 and a 90 760 “brick”. Of the two, the Volvo is used far more and holds a lot. I need the F150 to haul firewood and such, however. The truck has held up well, but doesn’t get the miles because it’s used only when needed. Maintenance on the Volvo has been scrupulously regular and it’s still doing fine at 250,000 miles (just replaced the timing belt)–great gas mileage too–about 25-26 mpg highway.
My Volvo shop owner tells me that I don’t want even a remotely new Volvo, since Ford took them over. He says they’re less reliable, more complex and cost far more to repair than the old ones.

Posted by: Obelix | Nov 25 2008 20:04 utc | 15

The US auto industry is not supposed to be efficient – the whole concept makes them cringe.
US auto industry (insofar as one can define such an entity) existed, exist today, to show to the world that Americans can drive about in show-boats indulging in extravagant and nonchalant waste, trash, pollution, without any thought for tomorrow.
Guns, bombs, nukes, to back up that privilege!
And up yours! The poor blackies in Africa can’t even drive! And we have TVs in every room, shut your gob! ( caricature…)
The US auto (Detroit, etc.) industry is not selling vehicles so much as US images and symbols of US supremacy.
When that collapses, as it is has done, they cannot sell any longer, and cannot adapt to new standards. Their job was to sell a certain kind of American dream, in energy-rich and joyful crowing supremacist times.
They have no interest, no capability, no mandate, to produce mini-green cars, electric scooters, huge diesel buses (like mercedes) etc. Gvmt stipends / bail out won’t change that, it seems many understand that and don’t want to pay.
– – one angle only

Posted by: Tangerine | Nov 25 2008 20:15 utc | 16

The US can build good buses. School buses use big three frames and then are built by a chassis company. Diesels in the US are some of the best in the world. Detroit Diesels, Cummins and Cat make some of the best industrial engines in the world. When I worked oil rigs some of them ran twenty four seven, this in the 1980s and needed little maintenance besides oil changes. American Tractors such as John Deere are great. Ford builds a lot of their tractors in France. The point is, the US makes great items and equipment that are “BIG.” Its the Texas syndrome. You know, everything in Texas is big. Its like the movie with Paul Newman and Burl Ives, Cat on a Hot Tin Roof by Tennessee Williams. Big Daddy. You schmucks must keep the image, I’ve created something great and I must leave it to someone, this cultural heritage, this empire I’ve created. We expect big big things Brick, big dammit.
We are a big country, we like big. Its cultural. The push west for breathing space is still ingrained. The only thing that will change it is $10 a gallon gas. Plan and simple. Oh, I’ll have to try the Volvo as pickup thing sometime.
Another point, its like the new TV commercial where the monster truck is out of gas and a new fuel efficient car pick them up. The fuel efficient owner brags about the MPG and the people that own the monster truck ask, say great, but can it crush a car? Plus, how can I have enough room for my gun rack?
Enough said. I’ve listed every stereotype possible, the problem is, their true.

Posted by: jdp | Nov 25 2008 21:20 utc | 17

All these bailouts are a scam. Its wealth transfer from the middle class who are neck deep in debt to the well connected oligarchies. And make no mistake both parties work hand in glove to keep the well heeled in clover.
Just look at the guys who created this mess:
Democrats: Bill Clinton, Bob Rubin, Larry Summers, Barney Frank, Chris Dodd, Tim Geithner (Obama’s Treasury Secretary)
Republicans: Ronald Reagan, Bush 41 & 43, Alan Greenspan, Hank Paulson, Ben Bernanke, Phil Gramm, Jim Leach, Chris Cox.
Guess, who’s in charge of fixing the “problem”??? Hold on to what’s left of your wallet if you can!

Posted by: ab initio | Nov 25 2008 21:39 utc | 18

@Cynthia
As near as I can tell, movers and shakers of the auto industry were stupid enough to pour more money into the advertising of cars than into the engineering of them…
The same can be written about innumerable industries, try this one:
As near as I can tell, movers and shakers of the auto phama industry were stupid enough to pour more money into the advertising of cars drugs than into the bio-engineering of them…
see how that works? Top heavy and dangerous, It’s indicative, all in the vain of profit above people. Systemic in
The Addictive Organization:Why We Overwork, Cover Up, Pick Up the Pieces, Please the Boss, and Perpetuate Sick organizations

–Even though there is a plethora of books about organizations and corporate life and millions of dollars each year are spent on consultants and packages designed to “fix up” what is wrong with organizations, corporations continue to search desperately for models that will reverse a slipping economy and enliven a poorly producing work force. Individuals look forward to weekends so that they can recover from their “crazy-making” experiences at work only to find that they must face the same dynamics on Monday. Often, persons who come from dysfunctional families find their organizations repeating the same patterns they learned in their families. Even though these patterns feel familiar, they do not feel healthy. Though consulting packages seem to alleviate some problems for a few days or a week, those same problems reemerge with even greater force and tenacity. Even after our favorite committees have had workshops on communications skills, breakdowns in communication, dishonesty, isolation, anger, and withdrawals continue. What is going on? What are we missing?

@seneca we have to think in terms of systems theory and holism. Language is indeed, what is needed, at least for those that can think critically, my fear is the masses are visceral, the population incrementally dumbed down, and traumatized* to think, act and react from the lizard brain, in other words their limbic system (or Paleomammalian brain) without thinking at all. ‘Shock doctrine’,strategy of tension, Edward Bernays, psyops,(war on the American citizen) economic insecurity, ad nauseum.
However as American writer, philosopher, and ethnobotanist, Terence McKenna said, “If the truth can be told so as to be understood, it will be believed.” Were in a race for time as the closing society is fast approaching. Perhaps, a race for our very lives as
The Camps, the “Law” and Now the Targeting System is not far off.
Almost everything is being put into place whilst America sleeps on… Post election is going to be a white knuckle ride for people who still cherish inherent rights and freedom. The system is being put in place to begin targeting dissenters, Constitution enthusiasts and whomever the state deems an “enemy combatant. Their target is definitely blogs and sites that promote information contrary to the agenda of the Fourth Reich and resistance to it. Read here: Software Developed to Monitor Opinions or in it’s entirety below.

The New York Times
Printer Friendly Format Sponsored By
October 4, 2006
Software Being Developed to Monitor Opinions of U.S.
By ERIC LIPTON
WASHINGTON, Oct. 3 — A consortium of major universities, using Homeland Security Department money, is developing software that would let the government monitor negative opinions of the United States or its leaders in newspapers and other publications overseas.
Such a “sentiment analysis” is intended to identify potential threats to the nation, security officials said.
Researchers at institutions including Cornell, the University of Pittsburgh and the University of Utah intend to test the system on hundreds of articles published in 2001 and 2002 on topics like President Bush’s use of the term “axis of evil,” the handling of detainees at Guantánamo Bay, the debate over global warming and the coup attempt against President Hugo Chávez of Venezuela.
A $2.4 million grant will finance the research over three years.
American officials have long relied on newspapers and other news sources to track events and opinions here and abroad, a goal that has included the routine translation of articles from many foreign publications and news services.
The new software would allow much more rapid and comprehensive monitoring of the global news media, as the Homeland Security Department and, perhaps, intelligence agencies look “to identify common patterns from numerous sources of information which might be indicative of potential threats to the nation,” a statement by the department said.
It could take several years for such a monitoring system to be in place, said Joe Kielman, coordinator of the research effort. The monitoring would not extend to United States news, Mr. Kielman said.
“We want to understand the rhetoric that is being published and how intense it is, such as the difference between dislike and excoriate,” he said.
Even the basic research has raised concern among journalism advocates and privacy groups, as well as representatives of the foreign news media.
“It is just creepy and Orwellian,” said Lucy Dalglish, a lawyer and former editor who is executive director of the Reporters Committee for Freedom of the Press.
Andrei Sitov, Washington bureau chief of the Itar-Tass news agency of Russia, said he hoped that the objective did not go beyond simply identifying threats to efforts to stifle criticism about an American president or administration.
“This is what makes your country great, the open society where people can criticize their own government,” Mr. Sitov said.
The researchers, using an grant provided by a research group once affiliated with the Central Intelligence Agency, have complied a database of hundreds of articles that it is being used to train a computer to recognize, rank and interpret statements.
The software would need to be able to distinguish between statements like “this spaghetti is good” and “this spaghetti is not very good — it’s excellent,” said Claire T. Cardie, a professor of computer science at Cornell.
Professor Cardie ranked the second statement as a more intense positive opinion than the first.
The articles in the database include work from many American newspapers and news wire services, including The Miami Herald and The New York Times, as well as foreign sources like Agence France-Presse and The Dawn, a newspaper in Pakistan.
One article discusses how a rabid fox bit a grazing cow in Romania, hardly a threat to the United States. Another item, an editorial in response to Mr. Bush’s use in 2002 of “axis of evil” to describe Iraq, Iran and North Korea, said: “The U.S. is the first nation to have developed nuclear weapons. Moreover, the U.S. is the first and only nation ever to deploy such weapons.”
The approach, called natural language processing, has been under development for decades. It is widely used to summarize basic facts in a text or to create abridged versions of articles.
But interpreting and rating expressions of opinion, without making too many errors, has been much more challenging, said Professor Cardie and Janyce M. Wiebe, an associate professor of computer science at the University of Pittsburgh. Their system would include a confidence rating for each “opinion” that it evaluates and would allow an official to refer quickly to the actual text that the computer indicates contains an intense anti-American statement.
Ultimately, the government could in a semiautomated way track a statement by specific individuals abroad or track reports by particular foreign news outlets or journalists, rating comments about American policies or officials.
Marc Rotenberg, executive director of the Electronic Privacy Information Center in Washington, said the effort recalled the aborted 2002 push by a Defense Department agency to develop a tracking system called Total Information Awareness that was intended to detect terrorists by analyzing troves of information.
“That is really chilling,” Mr. Rotenberg said. “And it seems far afield from the mission of homeland security.”
Federal law prohibits the Homeland Security Department or other intelligence agencies from building such a database on American citizens, and no effort would be made to do that, a spokesman for the department, Christopher Kelly, said. But there would be no such restrictions on using foreign news media, Mr. Kelly said.
Mr. Kielman, the project coordinator, said questions on using the software were premature because the department was just now financing the basic research necessary to set up an operating system.
Professors Cardie and Wiebe said they understood that there were legitimate questions about the ultimate use of their software.
“There has to be guidelines and restrictions on the use of this kind of technology by the government,” Professor Wiebe said. “But it doesn’t mean it is not useful. It can just as easily help the government understand what is going on in places around the world.”

The empire must always gauge the resistance. What, you guys don’t support the glorious War on Sentiment!?
It’s a P.K. Dick world now…
*terror, war war, terror, terror and fear, al CIA duh, duck tape, anthrax, snipers, color codes, WMD etc, etc…

Posted by: Uncle $cam | Nov 25 2008 22:51 utc | 19

Volvos were made to manage swedish roads and transportation needs, without bankrupting their buyers due to swedish gas taxes. But yeah, it has gone downhill since Ford took over. Just the other week, the union suggested that the government should take over Volvo and use the collected skill and knowhow to rebuild the transportation system into one not running on oil. Sadly, no chance of that happening. They are all to busy bailing out their friends at the local subsidiary of the financial sector.
Over to Veblen. I have read quite a bit about him, but I think it is time to read the actual stuff. If I want to know more about institutional analysis (which sounds like a great approach) were do I start?

Posted by: a swedish kind of death | Nov 25 2008 22:54 utc | 20

Yes Uncle, sentiments are clearly the greatest emerging threat to the nation. It’s a good thing we have software experts to nip these things in the bud. After I have to start sleeping in a different bed every night, I think I’ll join the satirists in the long rear guard action, that preceeds our final transportation to the camps. There’s possibly a certain kind of salon writing where one makes up mischievous names for the cast of political miscreants, and whereby one may avoid “political re-education”. One can make the battle more and more symbolic and dig into the fortress of allegory for a last stand.

Posted by: Copeland | Nov 26 2008 2:43 utc | 21

On the question of Mike Whitney’s argument and Debs, I think I agree more with Debs and less with Whitney.
The Dem choice in a Dem controled Govt. would seem to be to defend collective bargaining and the existence of the Auto Unions; but the deal breaker ought to be the continuation of management and the whole managerial culture of this industry. These Big Shots (especially GM) have opposed the innovations, the safety features and quality controls related to safety. Their history of decisions indicts them; when they were in the catbird seat they essentially thumbed their noses at Congress and its pressure for better mileage standards. GM built electric cars only when California govt insisted; and the minute that political will started to waver in the State, the Corporation cancelled the leases on the electrics and sent the whole lot to the crusher.
A GM that doesn’t start with new management, really ought not to continue. The workers also can’t keep their jobs, if potential customers aren’t buying new vehicles, or if financing credit is not available, or if the product itself is perceived as hopelessly outmoded technology.
Instead of financial incentives to buy the huge gas hogs, there should be incentives for application of new tech, new materials and fuels.
What would Congress be intent on saving? An industry? The workers? Or the management and the GM way of doing things, at all cost?

Posted by: Copeland | Nov 26 2008 3:39 utc | 22

I agree with Debs that the elites are not giving the same treatment to the Auto Industry, and yes I think it is a shaft to the autoworkers. From what I understand, the union people wish only for a loan to the corps., not bailouts as were given to the financial corps like CITI et al.

Posted by: Rick | Nov 26 2008 4:36 utc | 23

Damn, this is an interesting discussion. I haven’t visited MoA for several years and it’s good to see such a curious, skeptical collection of voices still thrives.
Uncle $cam made a great reference to Veblen, whose work foresaw a lot of these problems. After I read The Theory of the Leisure Class in 1990, I knew what I believed would happen to America. I didn’t think it would happen so fast… but then I didn’t predict a hyper-brazen Bush/Cheney Admin, nor such a Spanish Prisoner-styled complicated bunko game like the Obama campaign and election.
jdp has some great psychological insights into pickup truck drivers among “rednecks,” but overstates the extent to which such “rednecks” exist. Just because NASCAR now is a preferred entertainment vehicle for a lot of people who, in the 80s, would have been reading Lisa Birnbach and buying a lot of Lacoste and Brooks Brothers… well that doesn’t make “rednecks” more numerous in America now. Playing at being a “redneck” isn’t the same as being one. Being a slumming middle class white-collar dude who drives a Dodge 3500 Cummins TurboDiesel with a NASCAR tribute number on the rear window isn’t the same as being Bubba the roofing contractor. Trucks and SUVs are used to their load-carrying, hard-working purpose by only a very tiny number of their owners. Most ownership is about presenting an image.
I’m surprised that people are busy justifying the auto line workers’ roles, while failing to see that if we are even going to assume that the auto industry is important to our “economy” (I’d argue it is not), there’s no doubt that it’s bloated. GM has 7 divisions with a lot of vehicle overlap. Ford has Lincoln and Mercury with more overlap. Bloat, bloat, bloat. A visionary person would see there is plenty to pare away while leaving a core that can function and be nimble enough to adapt.
I’m surprised more folks aren’t discussing the reason why SUVs were known to be a short-term project — the “demand” for them was created. This is the problem with American business now. It doesn’t respond to demand. It creates demand through hype, “marketing,” salesmanship, extensive advertisement. Contrived, elaborate psychological manipulation is used — appeals to insecurity, to vanity, to manliness, to sexual attraction.
Once people are pinched financially and have to make cuts in their home budget, they’re likely to look at what they find extravagant. While people will have rationalizations for owning and driving a big SUV or pickup, those rationalizations probably won’t withstand the decision of rent/mortgage vs increasing fuel bills.
Which brings us to the manipulation of gasoline prices. Ask yourself whether this may have anything to do with the Auto “bailout” bringing to mind the question of the economic utility (wastefulness) of big trucks and SUVs.

Posted by: micah pyre | Nov 27 2008 18:31 utc | 24

Damn, this is an interesting discussion. I haven’t visited MoA for several years and it’s good to see such a curious, skeptical collection of voices still thrives.
Welcome back micah – bookmark and come back more often. Your comments are welcome.

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