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Noam Chomsky - Turning the Tide U.S. intervention in

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The Challenge Ahead<br />

Classics <strong>in</strong> Politics: <strong>Turn<strong>in</strong>g</strong> <strong>the</strong> <strong>Tide</strong> <strong>Noam</strong> <strong>Chomsky</strong><br />

368<br />

hands of <strong>the</strong> opposition, <strong>in</strong>clud<strong>in</strong>g <strong>in</strong>herited wealth, control over much of<br />

<strong>the</strong> economy, support from <strong>the</strong> <strong>in</strong>fluential Church hierarchy strongly<br />

backed by <strong>the</strong> Vatican <strong>in</strong> a predom<strong>in</strong>antly Catholic country and from <strong>the</strong><br />

nation’s largest newspaper, subsidized by <strong>the</strong> country organiz<strong>in</strong>g <strong>the</strong><br />

ongo<strong>in</strong>g military attack aga<strong>in</strong>st Nicaragua, and <strong>the</strong> back<strong>in</strong>g of <strong>the</strong> longterm<br />

master of <strong>the</strong> region. But whatever merit <strong>the</strong> charge has, it is clear<br />

enough that <strong>the</strong> Sand<strong>in</strong>istas are <strong>the</strong> rankest amateurs <strong>in</strong> this regard,<br />

restricted to crude and sometimes ugly devices of control long surpassed<br />

by more sophisticated practitioners of <strong>the</strong> art.<br />

1.7 The Domestic Successes of “Conservatism”<br />

The bus<strong>in</strong>ess-organized counterattack aga<strong>in</strong>st <strong>the</strong> Crisis of Democracy<br />

has had many domestic successes: weaken<strong>in</strong>g <strong>the</strong> labor movement,<br />

<strong>in</strong>creas<strong>in</strong>g <strong>the</strong> state role <strong>in</strong> <strong>the</strong> economy to <strong>the</strong> benefit of advanced<br />

sectors of <strong>in</strong>dustry, underm<strong>in</strong><strong>in</strong>g health, safety, civil rights and<br />

environmental protection, extend<strong>in</strong>g bus<strong>in</strong>ess control over <strong>the</strong> ideological<br />

system and revers<strong>in</strong>g <strong>the</strong> weak steps towards a more open society taken<br />

dur<strong>in</strong>g “<strong>the</strong> time of troubles,” and so on. Its economic consequences<br />

<strong>in</strong>clude <strong>the</strong> deepest recession s<strong>in</strong>ce <strong>the</strong> war followed by “a classical<br />

Keynesian recovery” (see chapter 4, section 5), nicely timed to create<br />

<strong>the</strong> impression dur<strong>in</strong>g <strong>the</strong> 1984 election that th<strong>in</strong>gs were look<strong>in</strong>g up<br />

under “Reaganomics.” Dur<strong>in</strong>g Reagan’s first term, <strong>the</strong> average annual<br />

growth rate fell by 25% from <strong>the</strong> rate dur<strong>in</strong>g <strong>the</strong> Carter years while<br />

Reagan’s “conservatism” brought productive <strong>in</strong>vestment and <strong>the</strong> US<br />

position <strong>in</strong> <strong>in</strong>ternational trade to record lows and <strong>the</strong> Federal deficit to<br />

record heights as <strong>the</strong> ratio of state spend<strong>in</strong>g to GNP rose more rapidly<br />

than at any time s<strong>in</strong>ce World War II. Growth <strong>in</strong> nonagricultural<br />

employment fell from 3.3% under Carter to 1%. Employment <strong>in</strong>

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