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Introduction
As for the causes of economic growth, the models I was taught all noted that it takes inputs to produce output, and, that the major inputs were land, labor and capital. Of the major inputs, it was assumed that capital was the most decisive as it was said to be fundamental to augmenting and making operative the potentials, capabilities and productivity of the other inputs land and labor. And “capital” was defined as a physical capital or a “stock” [a fixed quantity in time and space] of “things” that had been produced specifically in order to produce something else for profitable exchange[2] . And finally, since physical capital was defined as the central ingredient of economic growth, which was seen as almost equivalent to economic development, obviously then, the owners and/or controllers of capital, capitalists and managers, were seen as central players or originators of economic growth and development.
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Then came the 1970s and I was finishing graduate school and began teaching economics. Someone figured it out that no machine, without skilled labor that is able to effectively utilize all the capabilities of it, and, that is able to fix that machine when it breaks down, and, that has the right work ethic and attitudes, will produce much of anything. So this suggests that experience, skill, training and motivation by labor is a critical ingredient in economic growth. There was also now the suggestion that economic growth and development were not synonymous. But what about the central role of capital and the capitalist in economic growth and economic development? The answer was defintional and with some sleight of hand. Since “capital” is defined as any “thing” that is produced and used to produce something else, well, the skills, experience, education and even work attitudes are all “produced” by an educational system as well as family environment, and, they are used to produce something else, so we can just call all those produced and aquired skills, experience and attitudes of labor, all “human capital”; and so the textbooks now began to discuss “human capital” (not labor or skilled labor that had to make the conscious decision and effort to acquire or not acquire, and apply or not apply, those skills) as another critical “factor” in economic growth which was said to be a critical factor (a necessary if not sufficient condition) in overall economic development. The 1970s and 80s passed, as did my years of teaching Economics and other subjects, and then in the late 1980s the textbooks added something new again. Even if you have potentially productive machines and tools (physical capital), and even if you have highly skilled, experienced and motivated workers who know how to get the best out of those machines (human capital), what if those workers have no hope in the future and no reason to be motivated?; what if the workers feel they are being exploited by the system and those who run it?; what if the workers or the capitalists no longer accept the dominant values, beleifs, traditions and myths of the system that cause them to invest, save, get an education, take risks etc? That led to the concept of “social capital”[still barely mentioned in the texts] that refers to institutions that foster trust, hope, cohesion, cooperation, belief in the system, reciprocity, etc and cause people to sacrifice in the present for a possible future, take risks, save, invest and do all those activities critical to economic growth and development.
The term social capital was first coined in 1916 by L. Judson Hanifan[3] to refer to social networks and institutions/norms of reciprocity (goodwill, fellowship, sympathy and social intercourse) associated with them. Hanifan, by his own admission, employed the term “capital” (anything that has been produced and used to produce—for profitable exchange—something else) to catch the eye–and patronage–of the business community. Hanifan suggested that these social networks and institutions could, on micro as well as macro levels, enhance productivity, competitiveness, employment and income creation, etc. in some of the same ways that physical capital and human capital can, also, produce the same effects.
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Subsequent to Hanifan’s apparent introduction of the term social capital, the term and concept was reintroduced—and partly redefined—at least six times up to the present:
1) in the 1950s by sociologist John Seeley[4] to refer to ‘memberships in clubs and associations’ that act just like negotiable securities in producing career advancement and tangible returns to individuals;
2) In the 1960s, by urban economist Jane Jacobs[5] to refer to the collective value and effects of informal neighborhood ties and associations;
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Again the focus is on a new form of “capital” as a central ingredient in economic growth and development. In Indigenous societies, social harmony, mutual respect, cooperation, respect for law as well as law worthy of respect, absence of alienation, social cohesion, are all considered essential for collective survival, economic growth and economic development. Reciprocity is considered a virtue on its own and not, as an instrument for or of, personal gain or maximization of individualism and individualistic preferences.
So the Eurocentric and capitalist-based models of economic growth gradually incorporated and refined five Basic ingredients to economic growth[10] but said little about the concept of sustainability:
1) Capital Accumulation;
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These Eurocentric and capitalist models of economic growth and development basically set up a tautology or circular argument. By defining the goals of economic growth and development as equivalent with those values and goals most common to capitalism (materialism, conspicuous consumption of expanding volumes of goods and services, etc.), by measuring economic growth and development in narrow monetized terms (real GDP per capita with no comment on the types of goods and services making up that GDP or on the social costs of producing and distributing them) and by making, as key ingredients to growth and development, those inputs that are central to capitalism as a system (monetary system, private property rights, markets, profit incentives), we wind up with a virtual tautological equivalence[11] between capitalism and economic growth and development.
So a society that produces, on the average or per capita (without any allowances for the fact that the de-jure or on paper statistical average per capita may well not represent the typical de-facto situation for the average person due to outliers and de facto asymmetric distributions of incomes, wealth and goods and services) more goods and services, even if those goods and services have corrupting influences as in the case of drugs, pornography, alcohol, tobacco etc, and even if producing those goods and services involves waste of non-renewable resources and massive negative externalities, such a society is said to be experiencing and promoting both economic growth and development according to the Eurocentric and capitalist-based models of growth and development. And this system is seen as a kind of perpetual motion machine with little or no friction: new spending creates new incomes which create new spending creating new incomes (multiplier effects); new incomes and consumption spending create new jobs, tax revenues, savings leading to new investment spending (multiplier and accelerator effects) leading to even more incomes and multiplier effects etc.; the so-called “Virtuous Upward Spiral”.
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This is but one example of one of the new growth theories:
From: Parkin, Michael, Macroeconomics 7th Edition, Pearson, Addison-Wesley, Instructor’s Resource Disk, Chapter 7, Reprinted Under Fair Use Doctrine for Educational and Scholarly Exchange purposes only.)
Now here are some other models that illustrate the typical Indigenous views of survival, development (seen to be about more than economics) and sustainability that differ markedly from those typical of Western, Eurocentric and in particular capitalist economies. The economy is seen as an inseparable part of the total society. Present-day activities are always with the Seventh future generation and sustainability in mind. Spirituality is seen as a key ingredient in both social stability and development. The types of goods and services and their impacts and implications on the survival of the culture, along with the true costs of producing and distributing them are considered critical factors in the basic decisions of What, How and For Whom to produce and distribute the means of subsistence.
Materialism vs. Prudence
Acquisition vs. Reciprocity
Accumulation vs. Distribution
Ownership vs. Kinship
Growth vs. Sustainability
Immediacy vs. Caring for Future Generations
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Office of Indian Affairs-Washington
Supplement to Circular No. 1665 February 14, 1923
Indian Dancing
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To Superintendents:
At a conference in October, 1922, of the missionaries of the several religious denominations represented in the Sioux country, the following recommendations were adopted and have been courteously submitted to this office:
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And it is more than irony that the term “Final Solution of ‘our’ the Indian Problem” in the DIA memo of D.C. Scott is the exactly language used by the Nazis as in “Final Solution to the Jewish Problem”. The Alberta Sterilization Act of 1928[15], and the Eugenics Laws of 27 states of the U.S. were specifically cited by the German Nazis as the direct “inspirations” for their own 1933 Race Hygiene Law and 1935 Nuremberg Race Laws.”[16] According to John Toland, biographer of Adolf Hitler:
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(click on picture to enlarge)
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Why are these four[19] core values and imperatives considered fundamental to development and sustainability in Indigenous terms? There is an old saying that sums it up: “It is better to know where to go and not know how, than to know how to go and not know where.” Technology, “Capital” even “land” and “Labor”, are part of the how to go and not where to go. Without Sovereignty and Control of Assets and critical resources, without Vision informed by Spirituality[20] , without Kinship and healthy families and Clans and Bands, without Personal Efficacy (health and viability) of individuals, no nation, especially one surrounded by hostile forces that consider its mere existence a “threat” of some sort, will grow, develop or even survive and be sustained. This is no different for China than it is for any Indigenous society and vice-versa. Since its inception in 1949, the People’s Republic of China, with its own sovereign and socialist institutions and roads to growth, development and sustainability with Chinese characteristics, has been: encircled; threatened with nuclear annihilation; attacked internally by secessionist and separatist forces acting as proxies for foreign powers; hit with repeated embargos and denials of critical technologies and goods and services; slandered, demonized and isolated among the community of nations . [21]
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Social systems engineering, to which all Indigenous nations, along with socialist nations like China have been subject, involves putting targeted nations under such siege from external and internal pressures that have been manufactured and/or exacerbated, that the targeted nation winds up in a straight jacket, forced to divert precious scarce resources into defense and away from development and sustainability, that the targeted nation appears to “conform”, and thus the “proof” has been engineered, of the caricatures that have been made of that targeted nation: “backward”; “repressive”; “inefficient”; “undemocratic”; “stagnant”[22] etc. But in a fair fight, or peaceful competition between systems, socialism beats capitalism any day, even in terms of capitalism’s own definitions and measurements of “efficiency”, just as traditional Indigenous societies beat modern-day assimilated BIA-DIA controlled and capitalist influenced Indigenous societies, in terms of all the requisite ingredients to development and sustainability shown in the traditional Indigenous model of development and sustainability, any day. That is why they were put under siege with their core institutions and values slandered, demonized and marginalized historically and in the present: in a fair and peaceful competition between systems, socialism beats capitalism, as Traditional ways are far superior, even in terms of levels of science and technology, than what has become of Indigenous societies in North America and elsewhere under capitalism and “modernity.” [23]
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This is why I have urged young Chinese students who ask me about getting to go to school in the West to consider that they have some very fine teachers and schools in China and I have urged them, as a foreigner, not to worship things foreign. I have given the metaphor that if I were given a basic test of Economics in Mandarin, which I do not read, write or speak, it would appear that I know nothing of economics even though I have taught it over thirty years. This is only because I have been given a test and criteria of “success” that were designed and intended for me to fail and thus my “failure” and “proof” of my lack of knowledge of economics were “engineered” by those with the power to do so. The same holds for Indigenous societies put under siege by colonial and imperial powers to engineer the “proof” of their supposed “backwardness”, “stagnation” lack of “civilization”, etc; and thus my advice to Indigenous students, who seek capitalist “civilization” and “progress” away from Traditional Ways, is the same as my advice to Chinese students seeking supposed “advanced education” in the West: perhaps take a good look at, and then appreciate, what you have right in front of you.
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Notice in the Indigenous model of development and sustainability the focus is not on conquering or subduing nature but in working in harmony with nature. In Indigenous terms there is no such thing as Humankind versus Nature or the Environment as whenever humankind works against, or tries to conquer, the forces of that of which humankind is an integral part—“Nature”—then “Nature” is destined to win the battle as is evidenced by present-day global climate change and a whole host of threats to the planet that come from capitalist greed, myopia and disrespect for that—environment—of which humankind is an integral part of a delicate web of life froms and matter. Notice also that “Hope”, “Future Orientation”, “Cultural Integrity”, “Social Respect” and “Civic Participation”, all the elements of the overall construct of “social capital” to which modern-day Economics is only beginning to mention as critical to growth and devleopment, has been a part of Traditional Indigenous thinking for thousands of years. Notice in the Indigenous model, the focus on Health and Safety, on Vibrant Initiatives, and on individuals taking “Personal Responsibility” for the “Consequences” of their actions, in addition to “Incomes” (how they are earned and used), “Productivity” and “Trade” as critical to development and sustainability. The Indigenous model includes, holistically, factors that are clearly critical to development and sustainability and yet are nowhere to be found and/or are only newly-emerging, in the Western and capitalist-based models of growth, development and sustainability.
Here is another Indigenous model of development and sustainability that manifests the some of same concepts and constructs:
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(Source: Sustainomics and Sustainable Development—adapted from Munasinghe 1992, 1994 Reprinted under Fair Use for Educational and Academic Exchange Purposes Only)
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The warning against abuse of Nature and all that humankind is an integral part of has come from Indigenous Peoples over many years. Chief Sealth, of the Dwamish and Suquamish nations gave the following warning to U.S. President Franklin Pierce in 1855:
We know that the White Man does not understand our ways. One portion of the land is the same to him as the next, for he is a stranger who comes in the night and takes from the land whatever he needs. The earth is not his brother but his enemy, and when he has conquered it he moves on. He leaves his father’s graves and his children’s birthright is forgotten.
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[4] Seeley, John R, Sim, Alexander and Loosley, Elizabeth; Crestwood Heights: A Study of the Culture of Suburban Life, Basic Books, N.Y. 1956
[5] Jacobs, Jane, The Death and Life of Great American Cities, Random House, N.Y. 1961
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[8] Schlicht, Ekkehart, “Cognitive Dissonance in Economics” in Normengeleitetes Verhalten in den Sozialwissenschaften, Duncker and Humblot, Berlin, 1984
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[9] Coleman, James, “Social Capital in the Creation of Human Capital” in American Journal of Sociology, 94 (1988)
[14] Department of Indian Affairs, Superintendent D.C. Scott to B.C. Indian Agent-General Major D. McKay, DIA Archives, RG-10 series, April 12, 1910 (emphasis added)
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[16] Black, Edwin, “War Against the Weak: Eugenics and America’s Campaign to Create a Master Race” Thunder’s Mouth Press N.Y. 2003; Alberta Sterilization Victims Also Used as Guinea Pigs Revelation Comes as 40 victims win $4M settlement; Marina Jimenez National Post 10/28/98
[17] Toland, John, “Adolf Hitler”, Vol II, p. 802, Doubleday and Co. N.Y. 1976
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[18] Limerick, Patricia Nelson, “The Legacy of Conquest: The Unbroken Past of American West” WW. Norton and Co. N.Y. 1987 p. 338
[20] In most Indigenous cultures, “Spirituality” (more an individual matter) is differentiated from religion which is about organized dogma and rituals shared by a community of the religious. “Spirituality” means being guided by the “spirit” of something transcendent and beyond oneself. When indigenous people refer to “spirit” they are referring to the potential energy (as specified in the four laws of thermodynamics) embodied in all things and thus one reason why Indigenous peoples do not differentiate “animate” and “inanimate” aspects of the cosmos.
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[21] The so-called Republic of China or Taiwan is currently only recognized by 23 nation states including the Vatican, as the supposed “legitimate government” of all of China whereas up until the 1970s, the reality and legitimacy of the People’s Republic of China as the sole and legitimate government of all of China was denied except by a handful of nations yet the objective reality of and international law supporting, the PRC as the sole and legitimate representative of the whole nation of China was never in question by any honest and thinking person or government.
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[23] See: Weatherford, Jack, “Native Roots: How the Indians Enriched America”, Fawcett Columbine, N.Y. 1991;”Indian Givers: How the Indians of the Americas Transformed the World 1988; “Savages and Civilization: Who Will Survive?” 1994. Peat, F. David “Blackfoot Physics”, Weiser Books, Boston, 2002 pp 191, 193-96, 216
Responses to Questions on the First Anniversary of Occupy Wall Street
Vol. 3, No. 4 (Winter 2012), pp. 501-526
Published by: Pluto Journals
Article Stable URL: http://www.jstor.org/stable/10.13169/worlrevipoliecon.3.4.0501
Preview
Responses to Questions on the First Anniversary of Occupy Wall Street
Craven, James, Zhang, Xinning, World Review of Political Economy
Note: Occupy Wall Street (OWS) has been the first large-scale, ideologically diverse and spreading protests since the 1970s in the US. On September 17, 2012, protesters assembled near the New York Stock Exchange to commemorate the first anniversary of OWS. In the meantime, marches and rallies were held in more than 30 cities worldwide. Demonstrators protested social injustice ignited by insatiable corporate greed of banks and financial institutions like Wall Street and the protesters are still angry over issues such as that their homes are underwater, that the economy is in disarray due to the ineffective supervision of the American government. To view OWS in a clearer and deeper sense, Xinning Zhang interviewed Prof. James Craven at Clark College, Vancouver.
On Developments of the OWS over the Past One Year
Xinning Zhang: Dear Prof. James Craven, thanks for your responses to my questions on the first anniversary of Occupy Wall Street. As we see it, since it began on September 17, 2011, OWS has been viewed as an anti-capitalist protest; or as a broad-front and leftist protest, targeting the likes of the American Tea Party. Parallels are sometimes given with other movements in terms of demonstrations organized by mostly young people, with advanced social networking technology, to show their dissatisfaction on a wide range of issues such as those raised in the so-called “Arab Spring” demonstrations or in the protests against high unemployment in Madrid. Participants typically range from the unemployed, college students, babysitters, nurses, bus drivers, to general employees, etc. Political paradigms range from liberals, middle-of-the-roaders, socialists and some types of conservatives, to anarchists and libertarians. How can we understand the various claims, paradigms as well as forms and levels of participation of the diverse protesters?
James Craven: First of all I still see no evidence of a real “Movement”-yet- only a “Moment”; or, perhaps, several “Moments,” linked mostly by a common label across the country, with some demonstrations on symbolic dates mostly of significance to commemorate previous actions and/or that have mostly been conferred as “significant” by the “mainstream media” [“MSM”]. And I do not see strong parallels yet between the OWS “Movement” and the “Arab Spring” demonstrations or demonstrators on several levels. I do not believe that many of those in OWS could or would be capable of facing the levels of violence and state repression that those in the “Arab Spring” demonstrations have faced. In places like Egypt, Yemen, Tunisia and other places the level of state violence and repression are far beyond anything the typical OWS protester has ever faced.
Many of the “Arab Spring” demonstrations are focused against regimes that were installed, supported, protected by US imperialism; regimes that, by the way, were once trusted to act as destinations for accused “terrorists” under “Extraordinary Rendition” by the CIA. They were chosen for outsourcing torture forbidden by US law while also being targeted in some cases for “regime change” [as alleged regimes (e.g., Libya and Syria) that routinely carry out torture they were sent prisoners by the US government (USG) to do what the USG claimed was a reason for wanting regime change-torture]. Yet many of those involved in regime change among the “Arab Spring” protesters and insurgents are still begging the same forces of U.S. imperialism for support, appealing to “American-style democracy” and “human rights” that were behind installing and/or protecting and collaborating with the very regimes they want to change. And the demonstrators involved in the “Arab Spring” demonstrations, among whom Al Qaeda elements are surfacing and taking control, are not “pro-democracy,” pluralists, or whatever; many are not expressing anti-capitalist or even anti-imperialist sentiments or demands so much as for simple regime change and “reform” to some system as yet unspecified in any detail. …
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Zhang Xinning ( PhD Candidate of CASS):
James Craven( Tenured Professor from Economics Department of Clark College): I have been going to the demonstrations and talking at length with people from the various segments represented (Gays; Greens; Anarchists; Union representatives; Unemployed; Students; Feminists; Democrats; Green Party; Homeless; various shades of “Left”; Radical Academics; Hippies; etc). Although wealth and income inequality of the U.S. (Gini coefficient same as China overall at 0.5) is the highest of any “developed” capitalist economy, most of the people in the street were not mentioning or protesting this two years ago. Most did/do not know the numbers or theories behind the inequalities of wealth and income; nor do they know the full implications even in bourgeois theory; but they are reacting at the “meme” (thought virus) level. That is progress in terms of moving from reform of capitalism to wanting to see the end of capitalism and imperialism; but right now there is more of a carnival atmosphere than a climate of unified understanding of and struggle against, capitalism here and US Imperialism abroad and here.
Zhang Xinning:The “Occupy Wall Street” movement seems leaderless, without focused demand. Whom do you think will take the lead of the movement with the spreading of the protest? Will there be a common political aim?
James Craven: Bourgeois culture is by necessity (to create and expand markets and expanded reproduction of capitalism as a system) one of ultra-individualism, greed, selfishness, competition, envy, narcissism, triumphalism, braggadocio, predation and other evils. The people on the “Left” may think they are special and untainted by the bourgeois culture in which they were also raised, but just as a fish in polluted waters will always absorb some toxins in its tissue, so many of the “Left” are infected with the same bourgeois or petty-bourgeois mentalities they decry. There is so much “single issue-ism” and MY cause is paramount for special notice and concern. That is why my sign that I carry in the demonstrations says: “Liberty [does not equal]”Equal Opportunity to Become an “Oppressor”; Oppose U.S. Imperialism In “Our” Name; (covers all pet issues)”. We have in addition to a kind of carnival atmosphere, where the protesters are being so sweet and nice to the police and providing all sorts of nice photos for them to use, they are pushing for particular pet causes (Gay Rights, Environmentalism; Feminism; Tax the Rich; Reform Capitalism; Forgive all student Debt; More Jobs; etc) and you are correct that no real leadership, except what the bourgeois media selects and appoints as “Leaders”of “the movement”[when there are many and some contradicting the others under one umbrella]. So a lot of what is going on is indeed leaderless, mostly reaction to individual situations with individual and rather uncoordinated protests, and lacking in focus, direction, tactics, strategy, knowledge and experience in mass work and building united fronts against Imperialism and proto-fascism.
Zhang Xinning: The basic contradiction of capitalism is the contradiction between the expanded reproduction and individualism. Do you think that the current financial crisis and the Occupy Wall Street movement have intensified such contradiction?
James Craven: One of the central contradictions of capitalism is the contradiction between the forms of consciousness and basic values necessary for the expanded reproduction of capitalism (petty bourgeois ultra-individualism, selfishness, greed, need for some form of immortality, crude materialism etc) on the one hand, versus, the increasing socialization and integration of the productive forces of capitalism and the need for some social cohesion and integration on the other hand. The result of this on the “Left” in America and Canada is a form of “single-issueism” (Me. ME. ME, MY cause is paramount) that produces the reality of fragmentation and division of movements that may unite in action on a broad range of common interests, but not see that these “single-issues” ( environment, homosexual rights, increased taxes on the rich, rural development, union busting, anti-Iraq and Afghanistan illegal wars, feminism,, globalization etc) all flow from one central source: the fundamental nature, contradictions, dynamics, “logic”, imperatives, trajectories, impacts and power structures of di guo zhu yi. According to the secret “Plutonomy Report” from Citibank, the ultra-rich are worried about the fact that in a one-person-one vote system, the top 1% may have most of the wealth and a good chunk of total income, but they do not have 99% of the potential votes and thus they fear these kinds of reactions as they openly celebrate plutocracy which is inherently anti-democratic no matter anyone’s definition of “democracy”. So these demonstrations are important in consciousness raising; and they expose more and more people to the notion that capitalism and imperialism are the number one sources of terrorism today and the main threats to the survival of the whole human race. But they need to take more steps and learn more lessons to arrive at higher stages of consciousness than they presently demonstrate (like demonstrating for more “optimum” arrangement of deck chairs on the Titanic). I’ve been living under “mei di guo zhu yi” as an American Indian for 65 years, studying it and struggling against it for over 40 years, and am a veteran of the U.S. Army 1963-66 where I saw the beast from the inside at levels that most soldiers never get to see. As an American Indian, who has lived and worked on the reserves and reservations of America and Canada, and as a tri- national (U.S. Canadian and Blackfoot) I have also seen mei di guo zhu yi (which I regard as the principal and most dangerous source of state-sponsored terrorism today) with and without “mian zhao” and with and without “tang yi pao dan”; it cannot be “reformed”.
Zhang Xinning: “Occupy Wall Street” is spreading through America and other capitalist countries, what do you think it will result in? What kind of influence will have on America capitalist system?
James Craven: As Chairman Mao Zedong warned many times [capitalism survives for a long time under socialism and] socialism may be used to build and restore capitalism [instead of capitalism being used to build and defend the material conditions and foundations of socialism] with the result of the longer-run demise of socialism which has happened in the former USSR and elsewhere. This is why the Chinese youth must be warned, not with slogans but with concrete evidence and reason, that the “di guo zhu yi de mian zhao he tang yi pao dan” represent: not freedom but enslavement; not progress and development but backwardness and reaction; not personal ‘liberty’, but personal myopia and self-destructive and socially destructive forms of false freedoms and false liberties associated with narcissism, megalomania, selfishness and the mentality of “wei zi gi fu wu”—which will destroy China and the whole world. I am hopeful in the long-run that imperialism is a doomed system; doomed by the nature and weight of its own internal contradictions and logic.