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Crisis inCalifornia



Crisis in California:Everything touched bycapital turns toxicText by Gifford Hartman of the Insane Dialectical Posse:yingpicket.org

Layout by an autonomous committee against the crisis:likelostchildren.blogspot.com

January 2010



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“I should be very much pleased if you could nd me some-thing good (meaty) on economic conditions in California ...

California is very important for me because nowhere else

has the upheaval most shamelessly caused by capitalist

centralization taken place with such speed.”

—Letter from Karl Marx to Friedrich Sorge, 1880

Shantytown USA

In California toxic capitalist social relations demonstrated their fullirrationality in May 2009 when banks bulldozed brand-new, butunsold, McMansions in the exurbs of Southern California.

Across the United States an eviction occurs every thirteen sec-onds and there are at the moment at least ve empty homes for every homeless person. The newly homeless are nding bedsunavailable as shelters are stretched well beyond capacity. SaintJohn’s Shelter for Women and Children in Sacramento regularlyturns away 350 people a night. Many of these people end up inthe burgeoning tent cities that are often located in the same places

as the ‘Hoovervilles’—similar structures, named after then Presi-dent Herbert Hoover—of the Great Depression of the 1930s.

The tent city in Sacramento, California’s state capital, was setup on land that had previously been a garbage dump. It became



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internationally known when news media from Germany, the UK,Switzerland and elsewhere covered it. It featured in the Frenchmagazine Paris Match and on The Oprah Winfrey Show in the US.Of course this publicity necessitated that Arnold Schwarzenegger,

California’s governor, and Kevin Johnson, mayor of Sacramento,shut it down. When we visited in March 2009 to investigate, wemet Governor Schwarzenegger and Mayor Johnson there bychance. Johnson told us the tent city would be evacuated, saying,‘They can’t stay here, this land is toxic.’

Almost half the people we spoke with had until recently beenworking in the building trades. When the housing boom collapsed

they simply could not nd work. Some homeless people chooseto live outside for a variety of reasons, including not being allowedto take pets into homeless shelters or to freely drink and usesubstances. But most of the tent city dwellers desperately wantedto be working and wanted to be housed. In many places peoplecreating tent encampments are met with hostility, and are blamedfor their own condition. New York City, with a reputation for intoler-ance towards the homeless, recently shut down a tent city in EastHarlem. Homeowners near a tent city of 200 in Tampa, Floridaorganized to close it down, saying it would ‘devalue’ their homes.In Seattle, police have removed several tent cities, each named‘Nickelsville’ after the Mayor who ordered the evictions.

Yet in some places, like Nashville, Tennessee, tent cities aretolerated by local police and politicians. Church groups are even

allowed to build showers and provide services. Other cities thathave allowed these encampments are: Champaign, Illinois; SaintPetersburg, Florida; Lacey, Washington; Chattanooga, Tennes-see; Reno, Nevada; Columbus, Ohio; Portland, Oregon. Ventura,California recently changed its laws to allow the homeless to sleepin cars and nearby Santa Barbara has made similar allowances. InSan Diego, California a tent city appears every night in front of themain public library downtown.

California seems to be where most new tent cities are appearing,although many are covert and try to avoid detection. One that at-tracted overowing crowds is in the Los Angeles exurb of Ontario.



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The region is called the ‘Inland Empire’ and had been boominguntil recently; it’s been hit extremely hard by the wave of foreclo-sures and mass layoffs. Ontario is a city of 175,000 residents, sowhen the homeless population in the tent city exploded past 400,

a residency requirement was created. Only those born or recentlyresiding in Ontario could stay. The city provides guards and basicservices for those who can legally live there.

Toxic Tour along Highway 99

“And so, for all the bravado about the state’s leading inus-

try [agriculture]—about the billions of dollars that it adds to

the economy and the miracles of production and technical

ingenuity that it has accomplished —California’s farming is

on the way out, as the rising value of its soil produces more

in [real estate] lot sales than in cotton, cattle, or almonds.

A linear city of shopping malls, housing developments, and

ofce parks spreads from the Bay Area to Sacramento and beyond, and another along Highway 99 from Sacramento to

Bakerseld on the east side of the San Joaquin [Valley].”

—Gray Brechin, Farewell, Promised Land: Waking from the Cali-

fornia Dream (1999)

California’s Central Valley is 720 kilometres long and eighty kilo-

metres wide, sitting between the Sierra Nevada and Coast Rangemountains. Its two main rivers are the Sacramento and the SanJoaquin, which run through the northern and southern parts, givingtheir names to the valley’s two sections. The two rivers join in amassive delta that ows into the San Francisco Bay. It is the mostproductive agricultural region in the world where, since the 1970s,developers have been paving over fertile soil to build massive

tract-style suburban and exurban housing.

For years, the monocultural practices of highly centralized agri-business have been polluting ecosystems with a toxicity thatspreads environmental damage beyond the region. More recently,



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the mortgages nancing the new homes have become the toxicassets polluting social relations. In the midst of the world’s rich-est farmlands, the Central Valley probably has more foreclosedhomes than anywhere else in the world. Historically, some parts of the Valley have had the lowest wages in the US and some of thehighest rates of unemployment outside the Midwestern ‘Rust Belt.’The Valley competes with the Los Angeles basin for the worst air quality in the US. According to the Environmental Protection Agen-

cy, the town of Arvin—immortalized in John Steinbeck’s Grapes of

Wrath (1940) for the government-funded migrant workers campcalled ‘Weedpatch’—has the dirtiest air in the country.

Interstate 80 is the second-longest highway in the United States,traversing the country from San Francisco in California’s Bay Areato the suburbs of New York City. Driving east along Interstate 80

from the Bay Area, chaotic, unplanned suburban sprawl has re-placed farmland for nearly all of the 140 kilometres to Sacramento.There are a few breaks when the terrain is hilly and a few cropelds have survived, but otherwise all you see are longs strips of suburbanity: shopping malls, endless rows of tract homes, auto-mobile and recreational boat dealerships (many now just emptylots), ofce parks and billboards.

Running south of Sacramento, through the heart of the CentralValley, is Highway 99. For decades the towns and cities of theCentral Valley have been amongst the fastest growing in the US,and as you drive along the highway you pass through all these



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places that until recently had all the garish optimism of boomtowns. The rst big city you reach after Sacramento is Stockton,home to a deep-water sea port that connects major rivers with theSan Joaquin Delta, the Bay and trans-Pacic trade. In the earlier

years of the decade, Stockton was at the centre of the specula-tive housing bubble. In 2008 it had the highest rate of foreclosuresin the country. It also has one of the highest unemployment ratesand Forbes magazine recently rated it the ‘most miserable city inthe US.’ Further south there is more of the same American con-sumer culture: shopping malls surrounded by massive parking lotsand a huge Christian high school in the town of Ripon. In placesrailroad tracks and changing yards run alongside 99, but many of

the tall grain silos and food processing facilities have been aban-doned. The next big city is Modesto—the number one city in theUS for car thefts and number ve on Forbes’ ‘most miserable’ list.Here the fertile farmland has been concreted over to build ‘afford-able’ housing for commuters, some of whom endure a two-hour each-way drive to the Bay Area. Continuing south through Mer-ced—with the second highest ‘ofcial’ unemployment rate of any

US city—there’s yet more malls and chain stores, but also remind-ers of the agricultural industry: a few orchards and livestock pensalong the highway, as well as dealers in tractors and other farmmachinery. You can also see the plentiful irrigation canals thatmove water from the wet north to the Valley’s dry southern end.What is striking is how much of the industrial and agricultural in-frastructure appears to be rusting away. Many plants display huge‘For Sale’ signs.

Two hundred and seventy kilometres south of Sacramento, youreach Fresno, California’s fth largest city, with a population of half a million. Fresno is the hub of the San Joaquin portion of the val-ley and it always seems to be in a haze of brown smog, especiallyduring the stiingly hot summer months. It is the ‘asthma capitalof California,’ a result not only of vehicle and industrial pollution,but also the airborne pesticides and other toxic chemicals used inagriculture. Fresno County is the most productive and protableagricultural county in the US. Until recently it was also home tothree large downtown tent cities, as well as other smaller encamp-ments scattered throughout the city and along the highways.



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The rst tent city, on Union Pacic railroad property, was evictedin July 2009. It was literally toxic: sludge was discovered oozingout of holes in the ground in the summer of 2008, possibly due tothe site’s previous use for vehicle repair. ‘New Jack City’—after

the 1991 lm about violent crack-dealing urban gangs—earnedits name because two murders have already occurred there. Thethird tent city is more like a shantytown because many of the livingspaces are built with scavenged wood. It is called ‘Taco Flats’ or ‘Little Tijuana’ because of its many Latino residents. These aremostly migrant agricultural labourers, unemployed because of theeconomic crisis and because a three-year drought has severelyreduced the number of crops being planted.

Farm work has always been seasonal and unstable, and it hasrelied on migrant labour since the Gold Rush of 1849. Right now92% of agricultural workers are immigrants. Chinese workers—of-ten derogatorily referred to as ‘Coolies’—were brought in to buildthe railroads. Once the transcontinental railroad was completedin 1869, they worked in mining until racism and declining yieldsdrove them off. Many ended up labouring in the elds until the Chi-nese Exclusion Act of 1882, which prevented further immigration,and also resulted in many Chinese being driven out of rural areasand into urban ghettos. Growers then turned to Japanese, Filipino,Armenian, Italian and Portuguese immigrants, as well as Sikhs





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hobos would arrive in Fresno for the grape harvest. Much like thetent cities today, workers camped out downtown and looked for work in what was known as the ‘slave market.’ The Japanese wereoften very united and willing to strike for higher wages and better

conditions. Knowing that the IWW tried to organize all workers,regardless of race, nationality, ethnicity, gender or sector, the localelites were terried that the Japanese might align themselves withthe IWW. They resorted to violent harassment and mass arrestsof IWW soapbox orators, frequently using vigilantes. The strugglecontinued in the courtroom where the Wobblies took up as muchtime as possible, seeking to make their trials political and agitatingfor class struggle. This ght for free speech was victorious, al-

though its main effect was Fresno’s political leaders and local farmowners becoming more tolerant of the conservative American Fed-eration of Labor (AFL) and its attempts to organize farm workers.

The next major IWW confrontation took place in 1913, in theSacramento Valley’s hop-growing region. The Durst Hop Ranchin Wheatland advertized in newspapers throughout California theneed for 2,700 workers. In fact they needed only 1,500. The inten-tion was to create a surplus of workers to push down wages. Theadvertisements eventually drew 2,800 workers of 24 ethnicities,speaking two-dozen languages. It was extremely hot, there wasno clean water and there were only nine outdoor toilets. Peoplehad to sleep in the elds if they did not want to pay Durst for a tentand, without clean drinking water, the only alternative was pay-ing Durst’s cousin ve cents for lemonade. Stores in town were

forbidden to come to the ranch to sell to the workers, forcing themto buy supplies at Durst’s own store. With no garbage removal or sanitation, many workers became sick. Durst withheld ten per centof wages until the end of the harvest, hoping that the lthy condi-tions would drive many to leave without collecting them.

A hundred or so of the men had some connection to the IWW andthey quickly called a meeting, more to discuss the deplorable liv-ing conditions than the pitiful wages. About 2,000 people gatheredto hear the Wobbly organizers speak, but the meeting was brokenup by the sheriff and his men. Four people were killed in the re-sulting riot, two workers and two from the sheriff’s posse. Most of



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workers ed the Durst Ranch and scattered. A reign of terror thenbegan. All over California radicals were targeted in the hunt for theWobblies judged responsible for inciting the riot. But the state’sinvestigation of the unhealthy conditions at the ranch that followed

led to new laws to improve the living conditions of agriculturalworkers.

Even so, fty years later almost nothing had changed concerningthe creation of a ‘reserve army of labour,’ or the use of racism tokeep workers divided and weak. The appalling conditions under which workers continued to labour, as many still do today, encour-aged Cesar Chavez to lead a farm worker organising drive in

Delano in the San Joaquin Valley in the 1960s. It resulted in theformation of the United Farm Workers union.

Gold, green gold, black gold:

California’s capitalist development

Gold was discovered in California in 1848. The Valley grew withthe rest of the state as capitalism appeared seemingly out of nowhere, practically overnight. California gold enabled the worldeconomy to recover during the age of revolution in Europe andit red the rapid urban industrial expansion across the UnitedStates. The San Francisco Bay Area became one of the mostdynamic regions of capitalist accumulation in the late 19th Century,

a role that the area of Southern California around Los Angelescontinued to play throughout the 20th. California’s later expansionwas based on ‘green and black gold’: agricultural commoditiesand oil. From the early 20th Century, several counties in Californiabegan to lead the US in the production of both.

Agriculture is much like any other form of capitalist production.With increasing mechanization, the concentration of capital andcentralization of production (and now with the use of geneticallymodied crops), higher yields can be achieved with fewer work-ers, who labour on a smaller number of larger farms. California’sCentral Valley was the rst region in the US to develop this system



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of industrial agriculture on a mass scale: agribusiness. As capitaltightened its control of farm work—in a move from its ‘formal’ to‘real’ domination over labour—the resulting highly productive ag-ricultural sector was able to take advantage of advances in trans-

portation to sell its products on the world market. This in turn threwweaker producers into crisis. In Europe, millions of peasants weredriven off the land, and many were forced to emigrate to placeslike the US. Globally, cheaper food meant workers could feedthemselves and their families more cheaply, allowing wages to fall,even as working class living standards—in some countries—rose.

The novel The Octopus: A California Story (1901), by Frank Nor-

ris, paints a vivid picture of this process of the proletarianizationof the Central Valley’s agricultural labour force in the 1880s. Ageneration later, John Steinbeck described the completion of theprocess in The Grapes of Wrath (1939), as internal migrants—thedust bowl refugees—trekked from Oklahoma to the Central Val-ley during the Great Depression seeking work. This agribusinesssystem of market-driven, centralized production resulted in the vio-lent and brutal industrial exploitation of agricultural workers. Theseconditions are still apparent today, as an army of mostly Mexicanand Central American farm and ranch workers roam throughoutCalifornia toiling for low wages and under equally precariousconditions. The main difference is that the increasing reliance onpetrochemicals in agriculture exposes farm workers to a wider variety of deadly toxins.

Water has become a commodity critical for California’s develop-ment. Most rain falls in the state’s northern part, but eighty per cent of the agricultural and urban demand is in the south. Anenormous, now creaking infrastructure of interconnected canals,dams, reservoirs and pumps moves water from sea level in thenorth to an elevation of 150 metres in the south, allowing veg-etables, fruit and nuts to be grown in the San Joaquin Valley. ButCalifornia’s development has always been rooted in an ideologyof endless growth and the idea that soil is real estate. From the1980s onwards, water distribution across the state has becomemore deregulated, whilst inuence over the bureaucracies manag-ing water has shifted from agribusiness to property developers. As



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farmland has been paved over, water once used to irrigate cropshas become available to property developments as far aeld asOrange County in southern California, Las Vegas in Nevada andPhoenix, more than 1,000 kilometres away, in Arizona’s rapidly de-

veloping sunbelt. Water, freed from its obligations to Central Valleyagribusiness, was part of the fuel that red the massive housingboom throughout California and the south-western US. But asdemand for water outstripped supply, the conditions for futuredroughts were created.

At the same time as much farmland has made way for develop-ment, other farms and ranches have centralized and concentratedeven more as they have shifted to a narrower range of more lucra-tive cash crops and livestock production. Between 1996 and 2006,

dairy production increased by 72% and almond acreage by 127%.An amazing eighty per cent of the world’s almond crop comesfrom 250,000 hectares of orchards in the Central Valley. This formof monoculture has its toxic effects. There are simply not enoughbees in the Valley to pollinate all the almond trees, so over fortybillion of them are brought in for the three weeks the trees are inbloom in February: some are trucked all the way along Interstate80 from New England and others are own from as far away asAustralia. En route the bees are fed what amounts to insect junkfood: high-fructose corn syrup and ower pollen imported fromChina, causing Colony Collapse Disorder. As many as eighty per cent of bees have left their hives, never to return. Since bees pol-





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as a major cause of toxicity in the region. Women’s Health maga-zine listed Bakerseld, the County seat, as the country’s mostunhealthy city for women.

This southern end of the Valley was merely a desert until the ir-rigation projects brought water. But the soil also contained salt andalkalis from an ancient seabed. A plan was devised for a master drain through the centre of the Valley that would dump thesewastes in the San Francisco Bay from which they could be ushedout into the Pacic Ocean. Environmental protests prevented thecompletion of the project and the drain instead ended up dumpinginto the Kesterson Reservoir, site of a refuge for migratory birds.

In the early 1980s, birds began to die in large numbers, chickswere born with deformities and cattle grazing nearby became sick.The cause was discovered to be selenium, a naturally occurringtrace element common to desert soil, toxic in high concentrations.The area became another human-made toxic hotspot, the reser-voir was drained and capped with soil, and the wildlife sanctuaryclosed.

But the poisoning of land, people and animals is not limited tomistakes like Kesterson. Concentrated, high-yield farming ischemical-intensive. A result of this is rapid soil-depletion, saliniza-tion, desertication and outright toxic contamination—by metalssuch as lead, and salts like selenium. These chemicals includecarcinogens that cause cancer, teratogens that cause birth defectsand mutagens that cause genetic changes. In 1988, the United

Farm Workers union demanded that ve toxic pesticides used bygrape growers—dinoseb, methyl bromide, parathion, phosdrin andcaptan—be banned.

Toxic housing, toxic self-medication

California’s housing boom, like that of the US more generally, wasfuelled by the creation of collateralized debt obligations (CDOs)that were based on readily available subprime and other riskymortgages. CDOs rapidly became ‘toxic assets’ when the bubbleburst. The notion of ‘toxic assets’ is of course something of a



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metaphor, but the housing boom created hundreds of thousandof homes that are literally toxic. It began with the conuence of the national housing boom and the rebuilding of New Orleans andother parts of Louisiana, Florida and Texas in the aftermath of hur-

ricanes Katrina and Rita in 2005. Massive quantities of drywall—also known as plasterboard or gypsum board—were needed.Builders, especially developers of large-scale housing tracts likeLennar Corporation, the second biggest home-builder in the US,imported 250,000 tons from China. Although this Chinese drywallmostly ended up in Florida and Louisiana, much of it also foundits way into Central Valley developments. The material gives off carbon disulde and carbonyl sulde, which corrode copper pipes,

electrical wiring and appliances like air conditioners. Worse still,people have suffered nosebleeds and rashes, whilst children havebeen aficted by ear and respiratory infections.

Owners wishing to sell these toxic new homes are legally requiredto reveal that they have Chinese drywall, resulting in house pricesfalling as low as $19,000. Some of the bigger builders, like Lennar,are ripping out the drywall and repairing some of the homes theybuilt. But others have gone bankrupt, or are on the verge of col-lapse, and have done nothing. Most banks have refused to rene-gotiate or adjust loans on these toxic homes, leaving their buyerstrapped.

Beyond these doubly toxic walls lie the Fresno tent cities, whichare plagued by a high level of drug use, particularly metham-

phetamine, commonly called ‘meth’ or ‘crystal meth.’ Across theworking class areas of Fresno, the use of this addictive psycho-stimulant drug has been dened by local health workers as hav-ing reached ‘epidemic’ proportions. The Central Valley was thebirthplace of the modern illicit form of this drug, originally pro-duced and distributed by biker-gangs like the Hell’s Angels. Thebiker drug networks were mostly broken by the police in the early1990s, only to be replaced by Mexican drug cartels using evenmore rationalized international systems of production and distribu-tion. The Central Valley around Fresno is key to meth productionnot only because of the large-scale operators, but also the tens of thousand of smaller producers, all of whom use the rural setting



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to operate clandestine labs and super-labs on farms and ranches.The plague of this commodity of immiseration is growing acrossthe US. As social order breaks down due to the crisis, many turnto self-medicating themselves with this toxic substance.

Social problems in the Central Valley once again attracted inter-national media attention in August 2009, when the BBC aired thedocumentary, The City Addicted to Crystal Meth. Filmed in Fresno,it details how social breakdown has been accelerated both by theurban sprawl during the housing bubble and by the unemployment

and mass foreclosures that have accompanied its inevitable col-lapse. The resulting desperation spread meth to the working classbeyond the Central Valley, making it one of the most popularlyabused drugs in the world today. The documentary features meth-users decrying ‘cookers,’ those who actually mix the toxic chemi-cals to produce the drug, as being ‘brain damaged.’ Meanwhile,many admit their own brains have been damaged by use of thedrug which is sometimes consumed by those as young as eleven.Some families contain multigenerational users, and many havebeen destroyed with increased incidences of domestic violence,incarceration and premature death.



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The chemicals used to produce meth are not only highly toxic, buthighly ammable too. Many meth labs have exploded as a result,killing the cookers and burning down nearby buildings. Somecookers produce meth on the run and have ended up burning

down whole motels when their rooms have exploded due to inad-equate ventilation. Beyond its immediate costs, one of the worstaspects of the manufacture of methamphetamines is the waste.Each kilogram of meth produced results in ve to seven kilogramsof waste. Inevitably, this frequently gets dumped in remote ruralareas, such as the parks and forests in the foothills enclosing theCentral Valley.

An image from our future?

Commonplace though it may be: the economic crisis is global. Sowhy focus on California’s Central Valley? Because, to return toMarx, ‘[t]he country that is more developed industrially only shows,to the less developed, the image of its own future.’ Because the

upheaval most shamelessly caused by capitalist development inCalifornia has continued unabated, perhaps even gaining speed.Because the wasteland of devastated eco-systems and toxic livesthat we encounter there, where capitalism has contaminated everyaspect of human social relations it has touched, may be what liesin store for all of us.

In the Preface to the rst German edition of Capital in 1867, Marxsuggests we observe ‘phenomena where they occur in their mosttypical form.’ In his day that meant ‘production and exchange’ andthe conditions of ‘industrial and agricultural labourers’ in Eng-land. If we do this, he said we can confront those who say thatin their own country ‘things are not nearly so bad.’ In our day, theUnited States—particularly California—has replaced England asthe world’s most advanced capitalist economy. Here we see that

violent exploitation of humans is linked to the abusive treatmentof the land. That toxic housing, toxic mortgages and the abuse of toxic drugs complement each other. And, in almost impossibly rari-ed form: the full irrationality of toxic capitalist social relations.





Everything touched by

capital turns toxicThe United States’ most populous state, California is the world’seighth largest economy. The state has some of the planet’s mostproductive farmland and in the 1990s enjoyed an extensive real-estate boom. But intensive, industrialised agriculture has pollutedmuch of the environment and now, with more foreclosed homesthan anywhere else in the world, it is also home to a growing num-ber of tent cities. Gifford Hartman takes us on a road trip through

California’s Central Valley to witness the toxicity: of mortgages andecosystems, houses, drugs and human relations.

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