Diversity and Identity Politics Is A Deadend

Progressives have to declare class war as a central strategy. Otherwise we will all be sitting at the dinner table basking in our glorious diversity with nothing to eat.

For many good reasons identity and diversity have dominated our politics for decades.  Progressives celebrate its expansion and Republicans and their brethren on the right pretty universally engage in either dog whistle or outright racist politics. 

Simultaneously the rich and corporations have been fighting a class war. They have succeeded beyond belief. As is well known, for 90% of the population real incomes have been flat for the past 40 yrs. Meanwhile, the rich and corporations have gotten fabulously rich. Richer than at any time in history. And, to make things worse they have done this while hiding behind free-market (neoliberal) ideology that has impoverished the government and the public sphere of our lives. Our infrastructure is crumbling, education is outrageously expensive, sending many students to decades of indebtedness. Our health system costs more than twice any of our developed country cohort and delivers third world results. 

Progressives, time to fight back. Diversity and identity without a fair share of the pie is not going to make you happy.

The Future of the Women’s March

There is much ongoing discussion about steps needed to turn the enormous one day action of the global Women’s March in to a sustained movement to achieve better outcomes for the vast majority of Americans.1 To focus on just one strategic element, the movement needs to move beyond identity politics to embrace class warfare. The rich and corporations have carried out a sustained and successful class war for more than 40 years. They control the government and the economy. Donald Trump is just a symptom of the underlying issues. We need to break this hammerlock and shift the rules of politics and the economy back towards us, the 90% who are living off the remainders, the scraps from their feast. Continue reading

  1. The energy of this action is illustrated locally by the fact that over a 1,000 people marched in Hudson NY, a town of 7,000 in a county of 68,000. Video here of this event []

Park Avenue and How We Got There

“There” is our current situation in which our government has been bought by the rich and corporations, over 80% of the population has not had a pay raise in 40 years and the public sphere, schools, parks, our infrastructure, really anything not behind the gated walls of private wealth, is being starved in the name of free market ideology. The American promise that hard work, pluck and a bit of luck can bring success to anyone, regardless of their rank at birth, is an empty myth. If you are born poor you will die poor. Even if you are middle-class, there is a significant chance that you will sink and at any rate you will always struggle just to keep that middle-class status.

The rich and corporations have waged a 40 year class war. At this point they have won all of the battles and continue to take home the spoils. Continue reading

Money in US Politics and Supporting Bernie Sanders

DollarSignNow that the quadrennial Presidential election circus has officially passed the first pole, we can take a look at the field. None of the Republicans would even be allowed into my outhouse let alone past the front door. They are all counter-factual, racist, homophobic, religious, free market fundamentalist zealots (excepting of course Trump who is most of that but also a made for TV grinning orange monkey). So, enough with them. Continue reading

NSA Vacuuming, Meta Data, Mistaken Misleading Metaphors

NSA’s gathering of Meta Data Compared to Corporate Use of Information

In the current discussions of the government’s wholesale seizure of the meta data of our personal digital lives there is regular comparison to the acquisition and use of information about our digital lives by corporations. At the moment corporate use of individual information results in targeted advertising and increasingly location aware targeted advertising through our smart phones. The implicit, sometimes explicit, notion is that we mare so used to corporations gathering information that the NSA is just another corporation, nothing but just a bit more of the same old.

Comparisons Between Corporate Data Gathering and the Government Vacuum Cleaner Are Wrong Headed and Misleading Continue reading

Thomas Friedman’s It’s a 401(k) World – facile, misleading

Thomas L. Friedman NYTimesMay Day 2013 brought a piece in the NY Times by Thomas Friedman, “It’s a 401(k) World” that points out the enormous changes in employment, technology, personal access to information and personal responsibility for larger swaths of life.  Work changed from a steady job as a regular feature of life to a series of part-time or short term engagements with corporations who view labor as a throw away element. 

Reading this op ed leaves one with the notion that these changes have arisen through some immutable forces of nature. Continue reading

The Job Creators – Who Are They? The Rich, Really?

In recent years a standard bit of political rhetoric in the US has included references to “the job creators”. This most usually  flows along the lines of higher taxes on the wealthy will injure the job creators. Or, government regulation is crushing the job creators. The presumption of course is that the wealthy, the 1% in the current rhetoric, create jobs (and those not created by the wealthy are created by small business – this being another, long term part of our political discourse). Thus, government must do nothing that will upset the wealthy.

It must be noted that we have already had a large experiment with the obverse of this “don’t disturb the wealthy” policy. What if we made the wealthy even richer by lowering their tax rates? By simple logical deduction, this would incent them to invest more and create more jobs. Well, the Bush II years proved that this does not happen. Despite the largest tax reductions  on the wealthy in US history, job creation under Bush II was worse than in any presidency back to Hoover.

At some level believing the wealthy to be the job creators seems natural enough. They have lots of money to invest and in their desire for more they will be out investing in new projects that per force must create jobs. Without the aid of real analysis, I have always been a bit suspicious of this idea. Wealthy people have their money managed for them by large financial institutions and financial specialists. Very few of them are directly involved in any business other than the business of worrying about whether their financial advisors are ripping them off or doing stupid things. Why do real work when you can have your advisors leverage the vast scale of your wealth to get special deals on bundled high return financial instruments.

Nick Hanauer TED TalkAlong comes a wealthy guy, Nick Hanauer,1 with a five minute TED Talk debunking this job creator mythology that is more soundly thought out than my ramblings.

BTW – Hanauer’s analysis is straight forward Keynesian economics. We have a demand problem. US corporations have record sums of cash on the balance sheets. Yet they are not investing it. The answer is lack of demand, increased sales to generate the virtuous cycle of profits  followed by jobs. Though both the US and Europe are busy proving again that our economic problems are not going to be solved by austerity, debt reduction policies, other countries, like South Korea,  have proved anew the merits of Keynesian remedies. Unfortunately, we have no one in the elites who have the political will to do what has worked before very reliably. They used to call it “pump priming”. Now our pump is dry, unemployment and underemployment  is perniciously eating away at our society. 

  1. he was an early investor in Amazon []

Big Money, Big Politics…the best government bought, not by you…..

Wonder about the Impact of the US Supreme Court’s Citizens United Decision? 

Government in the US, as everywhere, has always been tilted in favor of the wealthy. But, the Citizens United  decision in 2010 giving corporations the right spend unlimited money has made government, really at every level, into the sole playground of the rich and big corporations.

A couple of weeks ago This American Life broadcast “TAKE THE MONEY AND RUN FOR OFFICE”. Listen to this program. It will further clarify how totally corrupt our government has become.

 

Charts from Mother Jones Illustrate That the Rich Have Won the Class War

I came on a set of graphics in Mother Jones, “It’s the Inequality, Stupid: Eleven charts that explain what’s wrong with America” that illustrate what you probably already know. But, a simple refresher course in some of the reasons why the rich are rich. The 99% already have this base covered.

Here are some of the charts I liked. Read the whole article at the Mother Jones website.

Income (constant dollars)

Note that if median family income had simply kept up with inflation over this period it would have grown to $92,000 instead of $50,000.

Change in income-since-1979-2010

 

 

 

 

 

 

 

 

 

 

 

 

Are Corporations Over Taxed?

Mother Jones does not make it clear that the Payroll Tax is also a tax on individuals. To add insult to injury the Payroll Tax is not levied beyond the first %106,800 of income.

Share of Federal Tax Revenue - Mother Jones

 

 

 

 

 

 

 

 

 

 

 

 

 

How Are The Richest of the Rich Doing?

Top Incomes asTax Payers - Mother Jones

Job Creation – A Pliable (Fraudulent) Rhetoric in the Current Debate over Debt and Debt Ceilings

When it comes to job creation both Democrats and Republicans reflexively trot out small business as the engine of growth. These flights of breathy admiration for plucky small business owners are part of our national myth, right up there with cowboys. There probably is some truth in this myth as long as you accept the other side of the equation which includes the fact that jobs in small businesses are lower paying and less stable than those in the middle and big size companies.

But to demonstrate the extent to which today’s political environment has lost any sense of consistency, we now have the Republicans saying that any tax increases on the wealthy and corporations are “job killers”.

Since when have wealthy individuals created jobs? They don’t start new entrepreneurial ventures. They do buy extra vacation homes and fly to Vermont and Colorado and Switzerland more frequently in their private jets for skiing and apres ski fun. Much of this extravagance also occurs outside of the US. It is well known that unlike poor and middle class people, wealthy people do not spend incremental income. They save a large portion of it. Poor and middle class must spend every dollar to keep up. I defy you to find data that supports the wealthy as a source of new job creation.

As for big corporations, they are sitting on huge pools of cash and not creating jobs now. 

Companies had a record $ 1.91 trillion in cash and other liquid assets at the end of the first quarter, the report also showed, up from $ 1.86 trillion in the prior three months. Six consecutive quarters of profit growth helped fuel a 96 percent jump in the Standard & Poor’s 500 Index from its recession-low in March 2009 through March 2011.  ((http://www.businessweek.com/news/2011-06-09/household-worth-in-u-s-increases-by-943-billion-fed-says.html))

There has been consternation that though corporate profits and productivity have soared since the 2008 meltdown, corporations are not investing in the US economy. To some extent this may merely be a symptom that big corporations are not beholden to any nation state. Just because IBM has headquarters in Armonk, NY does not mean that it is primarily US-centric in its business activities and future plans. IBM’s 2010 Annual Report reported sales as follows:  Americas $42,044 billion; Europe/Middle East/Africa $31,866 billion; Asia Pacific $23,150 billion. The report further glows about the opportunities in the emerging boom economies of India and China. The US (not even reported separately, just as part of the “Americas”) is not a high growth region.

To satisfy you own curiosity about how widespread this global phenomenon is look up some recent annual reports for companies like GE, Walmart, Caterpillar, or just choose your favorite large company that has headquarters in the US.

Returning to wealthy individuals, it would not be surprising if one could look into their portfolios to discover that they reflect the same global thinking as found in the IBM example.

A final note must be made that during the 1950’s and into the 1960’s and again in the 1990’s Federal taxes on wealthy individuals and corporations were significantly higher than they are today. Yet, those periods are marked by higher than average job creation. George Bush’s huge tax give aways tot he wealthy (really a transfer of Chinese liquidity to the US wealthy through the Federal tax system) in the 2000’s coincided with the lowest job creation period in US history dating all the way back to Hervet Hoover.