manufacturing

The Space Merchants: The Prescient Misters Pohl and Kornbluth*

~ Roger JG Albert

I love strange books with compelling titles and The Space Merchants by Frederik Pohl and C.M. Kornbluth fits the bill.  This book, first published in 1952 but with the seventh and last printing taking place in 1972, was printed in the U.S.A.  It’s based sometime in the future and looking back to it’s publication in 1952 from a 2012 vantage point is a bit  strange.  Pohl and Kornbluth obviously had to design a future that was credible to a 1952 readership still infused with memories of World War II and trying to deny the existence of the Korean War.  In some ways, that’s not too difficult a task, but in other ways the challenge is daunting.  For instance, the characters in the book still use phones like in 1952, board planes on the tarmack at airports and smoke incessantly, but space travel is common.  The book is about the marketing business and how it has evolved.  Lies are common and the bigger the lie the better.  Products are not simply advertized anymore.  Marketing businesses create products to sell not based on their utility but on their salability.  (How far is THIS from our current reality?) They are trying to sell people on Venus colonization.  How can they make Venus attractive to potential colonists?  It’s virtually uninhabitable.  I leave it to you to find a copy of the book to see how the main character in the book, Mitchell Courtenay, gets along.  What I want to highlight here is a simple paragraph on page 7 of my edition of the book which reads:

“Fowler Schocken inclined his head.  ‘Thank you, Matthew,’ And he meant it.  It took him a moment before he could go on.  ‘We all know,’ he said, ‘what put us where we are.  We remember the Starrzalius Verily account, and how we put Indiastries on the map.  The first spherical trust.  Merging a whole subcontinent into a single manufacturing complex.  Schocken Associates pioneered on both of them.  Nobody can say we were floating with  the tide.  But that’s behind us.”

Indiastries [my emphasis].  ‘Now that’s prescient,’ I thought to myself.  Pohl and Kornbluth project into the future a trend that was in its infancy in 1952 with post-war globalization and geopolitics, that is, the corporate drive to find cheaper raw materials and labour wherever they might be.  Of course, that’s a movement or trend that started long before epitomized by Christopher Columbus and his P3 venture, but did it ever take off after WW II.  Now, global business corporations scour the globe like bottom feeders, looking for the cheapest raw materials and the cheapest labour.  In the case of raw materials, its a little more difficult than with labour.  Raw materials are found where they lie in the earth.  It’s possible for hard rock mining companies, oil producers and other exploiters of the earth’s ‘natural resources’ to more to parts of the earth previously unexplored to uncover precious commodities like gold.  Canadian mining corporations are all over Mexico, Central and South America mining and exploring for minerals.  That doesn’t mean Canada has no gold left in ‘them thar’ hills, but the ‘business climate’ is much better in Mexico and the near absence of environmental regulation (or their enforcement) is just fine, thank you.  And labour is cheap, cheap, cheap. For secondary or value added manufacturers and businesses operating in the service sector, the ‘Third World’ is their oyster.  They’ve managed to cut deals with impoverished governments all over the world to set up export processing zones (EPZs) which are sometimes secured compounds, sometimes entire cities or regions, where powerful global corporations can set up shop, exploit cheap labour, pay no duties, no taxes, and face no environmental or health and safety regulations.  Corporations have flocked to the EPZs.  ‘Our’ corporations are abandoning North American, Japanese, European, Australian and South Korean labour and moving production to EPZs or other facilities in the ‘Third World’ at an exponential rate.  There is no turning this around.  China and India are big players in providing cheap labour for ‘our’ corporations making it hard to pick up any ‘consumer’ product these days that’s not manufactured there.  But make no mistake about it.  Those products are not Chinese or Indian products.  They are Nike, Apple, Dell, Monsanto, Nestlé, Wal-Mart, etc., etc, products produced by cheap labour in poor countries bypassing ‘expensive’ labour ‘here.’

So, Indiastries.  Looks like it’s well on the ways to reality. India harnessed as a whole by a single manufacturing trust. With how rapidly things are changing these days, how far down the road can that be? Pohl and Kornbluth were pretty prescient guys. Only problem I find with their scenario is who’s going to buy all these wonderful products made in India and elsewhere in the ‘Third World?’  Won’t be workers here because they’re putting us out of work as fast as they can.  We’ll see how it goes.

  • This is a re-blog of a post I wrote in 2012. I think it’s quite relevant following my last post.

Trump and protectionism

~ Roger JG Albert

This is just a short blog that is a reaction to a CBC radio interview this morning with a representative of the Canadian Manufacturers and Exporters Association (CMEA). The interviewer asked the rep from the CMEA how Trump’s presidency would affect Canadian manufacturers. His reply was that Canadian manufacturers are worried, but that Trump’s rhetoric is just that, rhetoric designed to appeal to particular gullible and self-interested audiences, and fact is something else. He said that if the US imposes tariffs on Canadian goods, then Canada should do the same with regard to American goods.

Problem is, there is a basic flaw in this perspective. Canada produces nothing. The US produces nothing. Corporations, sometimes registered in one country or another, produce things and services for sale. People produce things, not countries so why do economists and journalists still insist on using the country as their primary unit of analysis? When are they going to stop saying that Canada’s trade with the US is this and that, rather than focusing on the real situation which is that corporations are dominant and manipulate governments for their own interests? Ironically, many ‘Canadian’ manufacturers have their products produced in China or in other countries that provide them with tax breaks, lax labour and environmental laws, and cheap labour in export processing zones. And just because a corporation has a head office in Toronto and is technically a Canadian corporation that doesn’t mean that its prime motivator is to serve Canada as a country. No, its prime motivator is profit and as long as a Canadian head office serves its interests that’s fine, the moment it doesn’t do that anymore, its ‘loyalty’ will dissolve as quickly as salt in water and it will move its head office elsewhere. More to the point, of course, is that much of ‘Canadian’ manufacturing is controlled from abroad. That led Harold Innis (Google him) to note in the late 1940s that Canada is a country with its brains spread all over the globe.

Economists and journalists need to give their head a shake and stop letting corporate capital and its governmental lackeys lead them around by the nose.

 

The “Canadian Economy?”

~ Roger JG Albert ~ 4 Comments

Following my last post where I look at Statistic Canada’s analysis of intergenerational income in Canada without coming to any conclusions, today, I intend to make one specific point. That point also relates to a Statistics Canada post today on labour productivity in Canada.

http://www.statcan.gc.ca/daily-quotidien/161202/dq161202b-eng.htm

The point I want to make has already been make frequently enough. Harold Innis, the pre-eminent political economist who worked at the University of Toronto and who died in 1952 and his mentor and predecessor, Thorstein Veblen, the even more pre-eminent economic historian who taught in various American universities and who died in 1929 both in their own ways decried the use of statistics on a purely national basis. The transnational nature of corporate power and control has been studied carefully by scores of scholars over the decades. See in particular the work of William Carroll at UVic and the network of scholars with whom he is associated worldwide. In my own dissertation (1981) I argued following Innis that the weather doesn’t stop at national borders, nor should statistical analysis.

In an age where corporations are spread all over the globe and where a head office may be in one country, research and development in a couple of others and commodity production in several others, how does it make sense to talk about the ‘Canadian’ economy? If StatsCan wants to get with the times it needs to begin to follow corporations in the various parts of their businesses wherever they happen to be. It’s telling that the former Canadian Manufacturers’ Association is now the Canadian Manufacturers’ and Exporters Association. With the massive reductions in value-added production in Canada over the past half century, the concept of ‘Canadian’ manufacturing is losing its relevance. This is even more true when we consider that the extractive industries in Canada, especially in the petroleum industries are 95% under foreign control.

There is no such thing as the Canadian economy. The sooner we accept that and change our patterns of gathering data the sooner we will get an accurate picture of the global reality of ‘the economy.’ Of course Statistics Canada is there to serve the Canadian government so it’s by it’s very nature political. Harold Innis warned decades ago that scholars should not let politicians lead them around by the nose. It seems like that’s exactly what has happened for a long time now and is still the driving force of data collection in StatsCan.

I deal with this topic in several posts. Check my archives for more.

Global Corporate Charters

~ Roger JG Albert ~ 1 Comment

Click to access GTI-Perspectives-Global_Corporate_Charters.pdf

So, I’ve been researching and teaching about the expansion of the global capitalist system for decades.  From all the research I’ve done, it strikes me as just about inevitable that business will soon break away from its national charter licence system to one that is supra-national.

International law as it now stands is virtually toothless, but it won’t be long before a global justice system with enforcement capabilities will be necessary.  When large business corporations no longer operate nationally, but have their headquarters in one country, research and development in another and production in several others with no one country able to legislate their activities, it’s time for a change.  The Canadian Manufacturers and Exporters Association, formerly the Canadian Manufacturers Association, has no problem representing businesses who produce nothing (or virtually nothing) in Canada.  Businesses that formerly produced (manufactured) refrigerators, stoves and other appliances in Canada but who now produce them in China in their own factories or under licence to Chinese companies or in other countries with low wages and virtually no health and safety standards for workers are still considered Canadian manufacturers.  To me that’s pretty odd.

As business corporations become more and more global they will need to be regulated more and more globally if we have any hope at all of avoiding becoming nothing but fodder for the creation of obscene corporate profits. Of course, it’s much more complicated than I’ve stated it here.  I’ll have more to say about this in subsequent blog posts.  In the meantime, have a look at the article for which I’ve included a link above.  Check out its provenance,  the Tellus Foundation.  What they propose in this article is a new global charter system for business corporations.

Indiastries – The Prescient Misters Pohl and Kornbluth

~ Roger JG Albert ~ 1 Comment

I love strange books with compelling titles and The Space Merchants by Frederik Pohl and C.M. Kornbluth fits the bill.  This book, first published in 1952 but with the seventh and last printing taking place in 1972, was printed in the U.S.A.  It’s based sometime in the future and looking back to it’s publication in 1952 from a 2012 vantage point is a bit  strange.  Pohl and Kornbluth obviously had to design a future that was credible to a 1952 readership still infused with memories of World War II and trying to deny the existence of the Korean War.  In some ways, that’s not too difficult a task, but in other ways the challenge is daunting.  For instance, the characters in the book still use phones like in 1952, board planes on the tarmack at airports and smoke incessantly, but space travel is common.  The book is about the marketing business and how it has evolved.  Lies are common and the bigger the lie the better.  Products are not simply advertized anymore.  Marketing businesses create products to sell not based on their utility but on their salability.  (How far is THIS from our current reality?) They are trying to sell people on Venus colonization.  How can they make Venus attractive to potential colonists?  It’s virtually uninhabitable.  I leave it to you to find a copy of the book to see how the main character in the book, Mitchell Courtenay, gets along.  What I want to highlight here is a simple paragraph on page 7 of my edition of the book which reads:

“Fowler Schocken inclined his head.  ‘Thank you, Matthew,’ And he meant it.  It took him a moment before he could go on.  ‘We all know,’ he said, ‘what put us where we are.  We remember the Starrzalius Verily account, and how we put Indiastries on the map.  The first spherical trust.  Merging a whole subcontinent into a single manufacturing complex.  Schocken Associates pioneered on both of them.  Nobody can say we were floating with  the tide.  But that’s behind us.”

Indiastries [my emphasis].  ‘Now that’s prescient,’ I thought to myself.  Pohl and Kornbluth project into the future a trend that was in its infancy in 1952 with post-war globalization and geopolitics, that is, the corporate drive to find cheaper raw materials and labour wherever they might be.  Of course, that’s a movement or trend that started long before epitomized by Christopher Columbus and his P3 venture, but did it ever take off after WW II.  Now, global business corporations scour the globe like bottom feeders, looking for the cheapest raw materials and the cheapest labour.  In the case of raw materials, its a little more difficult than with labour.  Raw materials are found where they lie in the earth.  It’s possible for hard rock mining companies, oil producers and other exploiters of the earth’s ‘natural resources’ to more to parts of the earth previously unexplored to uncover precious commodities like gold.  Canadian mining corporations are all over Mexico, Central and South America mining and exploring for minerals.  That doesn’t mean Canada has no gold left in ‘them thar’ hills, but the ‘business climate’ is much better in Mexico and the near absence of environmental regulation (or their enforcement) is just fine, thank you.  And labour is cheap, cheap, cheap. For secondary or value added manufacturers and businesses operating in the service sector, the ‘Third World’ is their oyster.  They’ve managed to cut deals with impoverished governments all over the world to set up export processing zones (EPZs) which are sometimes secured compounds, sometimes entire cities or regions, where powerful global corporations can set up shop, exploit cheap labour, pay no duties, no taxes, and face no environmental or health and safety regulations.  Corporations have flocked to the EPZs.  ‘Our’ corporations are abandoning North American, Japanese, European, Australian and South Korean labour and moving production to EPZs or other facilities in the ‘Third World’ at an exponential rate.  There is no turning this around.  China and India are big players in providing cheap labour for ‘our’ corporations making it hard to pick up any ‘consumer’ product these days that’s not manufactured there.  But make no mistake about it.  Those products are not Chinese or Indian products.  They are Nike, Apple, Dell, Monsanto, Nestlé, Wal-Mart, etc., etc, products produced by cheap labour in poor countries bypassing ‘expensive’ labour ‘here.’

So, Indiastries.  Looks like it’s well on the ways to reality. India harnessed as a whole by a single manufacturing trust. With how rapidly things are changing these days, how far down the road can that be? Pohl and Kornbluth were pretty prescient guys. Only problem I find with their scenario is who’s going to buy all these wonderful products made in India and elsewhere in the ‘Third World?’  Won’t be workers here because they’re putting us out of work as fast as they can.  We’ll see how it goes.