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Chronic Unemployment

Neoliberalism as the Cause of Chronic, Structural Unemployment in the USA

News Over 50 and unemployed Recommended Links Chronic stress Computers eat people Underemployment Eroding Western living standards
The neoliberal myth of human capital Perma Temps Adverse Selection Scapegoating and victimization of poor Productivity Myth and "Rising labor costs" hypocrisy Neoliberalism and Christianity The problem of inequality
Neoliberalism as a New Form of Corporatism Corporatism Casino Capitalism If Corporations Are People, They Are Psychopaths Toxic Managers Office Stockholm Syndrome Learned helplessness
Unemployment after graduation Fake Employment Statistics Destructiveness of GDP Mania   Financial Sector Induced Systemic Instability

Economics Pseudo Theories

Notes on Republican Economic Policy
John Kenneth Galbraith Invisible Hand Hypothesis Inflation vs. Deflation Lysenkoism Financial Humor Humor  Etc

Unemployment offices, homeless shelters,  hospitals, prisons and casinos. and are the only real growth industries of Obama Administration. In Jan 2010 35 millions, or one in eight Americans, were on food stamps.

Obama's  biggest — and only major — jobs program is the U.S. military


When I was a kid they told us that automation would "free" us from working long hours. What they didn't tell us what that they weren't going to pay us for all this leisure time we'd get.

Mass unemployment is the primary indication of the collapse of a given form of society -- James Burnham


Introduction


"Unemployment" statistics has been the political advertising media for every Administration in modern times

From comment in
The Rise of Invisible Unemployment
 The Atlantic, Nov 9, 2014

 

Chronic unemployment is an immanent feature of neoliberalism, which requires the army of unemployed to suppress wages in order to increase share of profits for the top 1$ and, especially, the top 0.01%.  Another problem is secular (long-term) stagnation of the economy due to destruction of consumer demand, which comes with the deterioration of the standard of living and high level of unemployment.  As Pope Francis noted:

...Today everything comes under the laws of competition and the survival of the fittest, where the powerful feed upon the powerless. As a consequence, masses of people find themselves excluded and marginalized: without work, without possibilities, without any means of escape.

Human beings are themselves considered consumer goods to be used and then discarded. We have created a “disposable” culture which is now spreading. It is no longer simply about exploitation and oppression, but something new. Exclusion ultimately has to do with what it means to be a part of the society in which we live; those excluded are no longer society’s underside or its fringes or its disenfranchised – they are no longer even a part of it. The excluded are not the “exploited” but the outcast, the “leftovers”.

... ... ...

One cause of this situation is found in our relationship with money, since we calmly accept its dominion over ourselves and our societies. The current financial crisis can make us overlook the fact that it originated in a profound human crisis: the denial of the primacy of the human person! We have created new idols. The worship of the ancient golden calf (cf. Ex 32:1-35) has returned in a new and ruthless guise in the idolatry of money and the dictatorship of an impersonal economy lacking a truly human purpose. The worldwide crisis affecting finance and the economy lays bare their imbalances and, above all, their lack of real concern for human beings; man is reduced to one of his needs alone: consumption.

The institutions of neoliberal capitalism, while promoting an expanded role in the economy for "market forces" (read "financial oligarchy")  simultaneously transform labor relations. The “market” under neoliberalism certainly no longer refers to competition as a form of the production and distribution goods and services. Instead, it means something more along the lines of international financial monopolies protected by collusion between captured vassal state institutions (including neoliberal fifth column domination in the all major branches of government, especially executive and  legislative branches, educational institutions and media) and multinationals, which pay money to sustain this social order. The term “Free markets” under neoliberalism means letting rich people do what they want, not promoting efficient allocation of resources through competition and the price mechanism. The core of the fifth column are local oligarchs and so called "Chicago boys": sons and daughters of local elite who are trained for and indoctrinated for this purpose in Western universities. As aptly noted Neoliberalism – the ideology at the root of all our problems ( The Guardian,  April 15, 2016)

We internalize and reproduce its creeds. The rich persuade themselves that they acquired their wealth through merit, ignoring the advantages – such as education, inheritance and class – that may have helped to secure it. The poor begin to blame themselves for their failures, even when they can do little to change their circumstances.

Never mind structural unemployment: if you don't have a job it's because you are unenterprising. Never mind the impossible costs of housing: if your credit card is maxed out, you're feckless and improvident. Never mind that your children no longer have a school playing field: if they get fat, it's your fault. In a world governed by competition, those who fall behind become defined and self-defined as losers.

Under neoliberalism labor relations assumes the form of full domination of labor by capitalists. Unions are officially suppressed and large part of middle class is brainwashed to hate using set of propaganda stories about unions corruption, welfare quinsy, lack of competitiveness in unionized industries (with Detroit as a prime story), etc.  In this sense crushing by Reagan of the strike of air controllers was one of the first manifestation of this dominance. Workers again are downgraded to the role of debt slaves, who should be glad to get subsistence wages. And, for example, wages in Wal-Mart are really on subsistence level, no question about it (Making Change at Wal-Mart » Fact Sheet – Wages):

Wal-Mart jobs are poverty-level jobs.
Wal-Mart's average sale Associate makes $8.81 per hour, according to IBISWorld, an independent market research group. This translates to annual pay of $15,576, based upon Wal-Mart's full-time status of 34 hours per week1. This is significantly below the 2010 Federal Poverty Level of $22,050 for a family of four. The Wall Street Journal reported that the average Wal-Mart cashier makes just $8.48 an hour, far below the $11.22 national average for all cashiers.

This contrasts with the capital-labor compromise that characterized the state capitalism that existed several post-WWII decades and that was crushed by neoliberalism in 1970th. Neoliberalism also brought change in the relation between financial and non-financial capital: financial capital now again like in 1920th plays a dominant role dictating the rules of the game to manufacturing sector and controlling it via banks.

Under neoliberalism the wealthy and their academic servants, see inequality as a noble outcome. University professors of economics form the most corrupt part of intellectual elite – they are nothing more than employees of the financial oligarchy paid to administer intellectual anesthetic to those among debt slaves, who still have enough time to ask what’s going on. They want to further enrich top 1%, shrink middle class making it less secure, and impoverish poor.  That's an officially state goal. Then in 1992, when asked what Iran-Contra was really all about, Bush I replied that it was done for "...the continuous consolidation of money and power into higher, tighter and righter hands."

The upward redistribution of wealth requires high unemployment to weep prols into unconditional obedience.  In other words neoliberalism and high unemployment are twins.

Under the disguise of "free market" Newspeak  neoliberals promote a type of economy which is often called a plantation economy. In this type of the economy all the resources and power are in the hands of a wealthy planter class who then gives preference for easy jobs and the easy life to their loyal toadies. The wealthy elites like cheap labor: it's much easier to  dictate their conditions of employment when unemployment is high.

Keynesian economics values the middle class and does not value unemployment or cheap labor, so it is incompatible with neoliberal ideology and needs to be suppressed.  Neoliberals created the system which richly reward stooges of neoliberalism for their loyalty to the top 1%  bestowing on them an easier life than they otherwise merit. In a meritocracy where individuals receive public goods and services that allow them to compete on a level playing field, many neoliberal academic toadies would be losers who cannot compete.

One of the most important measures of the health of an economy is the following criteria: how many fulfilling, living-wage jobs are created or destroyed (most other economic factors can be distilled to this.). For example, widely used measure of economic growth, GDP is too influenced by financial masturbation and does not distinguish useful activity from harmful or irrelevant. 

Under neoliberalism the elite revived Roman emperor Septimius Severus advice to his sons before he died at Eboracum (York) on  February 4, 211:

"Avoid infighting, pay well the soldiers, and ignore everybody else" . 

So during the Great Recession Congress simply tuned backs to unemployed. With the implicit message you just need to die out folks ;-).

Military budget at the same time was greatly expanded and several unnecessary wars were launched.  Brainwashed American public eats all those neoliberal policies like real lemmings, demonstrating the level of groupthink and lack of critical thinking that is typical for high demand cults. So the myth about highly conscious "proletariat" that Marxists cherished remains a myth. Moreover quite opposite tendencies to creation of "enlightened lower classes" show their ugly face (Chris Hedges America is a Tinderbox naked capitalism):

ictus92, July 21, 2013 at 5:07 pm

To paraphrase Madeline Albright: “What’s the point of creating a totalitarian police state if you’re not going to use it?”

So where is the American totalitarian state going? If you look at the NDAA and the discussion around repealing the Posse Comitatus Act, the key words include quelling “domestic civil unrest”… So what are the “deep government” types anticipating so hysterically?

Well, the financial crisis keeps grinding away and is about to enter another phase of collapse as “quantitative easing” has run its course. Interest rates are rising, posing “technical insolvency” of the Federal Reserve itself. What this means is that time’s up for the 46 million in the Food Stamp Supplemental Program; 56 million getting Social Security retirement or disability benefits; and at least 20 million more needing full time employment. Obviously there’s some overlap, but the total number of people living on the margins of subsistence pushes 30% of the population.

For these, they face an immediate “Final Solution”… not exactly direct extermination, but death by deprivation, illness etc. Can work camps be far off for these tens of millions and the many millions more living paycheck to paycheck? This population and their sympathizers comprise the tinder for “civil unrest”. Hence the corollary to the famous “Collect it all” (communications) is “control it all” (civil disorder following further economic collapse).

Furthermore, prolonged neglect of key infrastructure will lead inevitably to severe food, water and electric power access shortages — another source of civil unrest potential.

Of course, overseas the totalitarian police state eliminates all expression of opposition that can change policies in the quest for “Permanent War” and “full spectrum” military dominance. This ends in global military confrontation… just as the financial crisis of the 30’s gave rise to another World War… only this time around world war will pitch towards thermonuclear war in short order. That’s how totalitarian regimes collapse into catastrophe, dragging the rest of us to an unpleasant demise.

Unfortunately, I don’t think there’s a damn thing any of us can do to arrest this beserk Levithan…

tongorad, July 20, 2013 at 3:21 pm

This is America, not Denmark. In this country, tens of millions of people choose to watch FoxNews not simply because Americans are credulous idiots or at the behest of some right-wing corporate cabal, but because average Americans respect viciousness.

They are attracted to viciousness for a lot of reasons. In part, it reminds them of their bosses, whom they secretly adore. Americans hate themselves for the way they behave in public, always smiling and nodding their heads with accompanying really?s and uh-huhs to show that they’re listening to the other person, never having the guts to say what they really feel. So they vicariously scream and bully others into submission through right-wing surrogate-brutes. Spending time watching Sean Hannity is enough for your average American white male to feel less cowardly than he really is.

The left won’t accept this awful truth about the American soul, a beast that they believe they can fix “if only the people knew the Truth.”

But what if the Truth is that Americans don’t want to know the Truth? What if Americans consciously choose lies over truth when given the chance–and not even very interesting lies, but rather the blandest, dumbest and meanest lies? What if Americans are not a likeable people? The left’s wires short-circuit when confronted with this terrible possibility; the right, on the other hand, warmly embraces Middle America’s rank soul and exploits it to their full advantage. The Republicans know Americans better than the left. They know that it’s not so much Goering’s famous “bigger lie” that works here, but the dumber and meaner the lie, the more the public wants to hear it repeated.”

“We, The Spiteful” by Mark Ames

http://exiledonline.com/we-the-spiteful/

Dave, July 20, 2013 at 8:18 pm

Please consider that the “right” is far more realistic in their assessment of human nature. The “left” wants things to be according to what they think it should be, mostly because of their left wing educators. The majority of humans are not perfectible.

Even Asians, with their highly socialized societies, have behaved very badly towards those outside their country.

This tendency of self-deception of "blue color America" and resonating of Republican Party ideas within "working poor" and lower middle class, two strata of the US society that typically votes against its own economic interests is analyzed in   What's the matter with Kansas  And to fight neoliberal machine is not easy as media dominance is total, and on a new technological level, which does not require silencing of opponents, just ignoring them, approach the level typical for the USSR or Nazi Germany.  And even if some people question the system, like (at the very beginning) Tea Party did, or later "Occupy Wall Street" movement did, they are mercilessly co-opted or crashed by well paid guard labor. The latter is one of the few  types of employment which prospers under neoliberal empire. See  The Rise of Guard Labor (dollarsandsense.org)

The reality is that many rich countries including the USA now face two problems. One is a shortage of jobs, especially middle class jobs.  The other is stagnant (or falling) wages for those outside top 1%.  This is not a temporary problem. Despite all the propaganda smoke this is an immanent feature of neoliberal regimes that now dominate in the USA and most other countries.  Neoliberalism requires high unemployment as a way to keep workers in check and prevent attempts to slow down redistribution of wealth toward the top.

As George Bush Sr . noted in November 1992 neoliberalism is "the continuous consolidation of money and power into higher, tighter and righter hands". The essence is  the consolidation of money and power to the top 0.1% or even 0.01%.  In a very deep sense our new lords from financial and political oligarchy are not that different from feudal aristocracy, may be only less educated, more prone to avoid military service and much more greedy. 

Unlike Keynesian economy which put middle class in the center of society serving a buffer between rich and poor,  under neoliberalism  middle class is no longer needed as a buffer between aristocracy and proles, as repressive power of the state and regime of total surveillance (National Security State) makes an organized opposition practically impossible. The fate of "Occupy Wall Street" movement is nice illustration here.

On the other hand neoliberalism as an ideology, while discredited by event of 2008 still does not have any viable alternative.  Socialism was discredited by collapse of the USSR (which in reality was a neoliberal counterrevolution by Soviet nomenklatura including part of KGB).  Authoritarian versions of state capitalism does not look too attractive, despite being quite effective as was proven by economic progress of "Asian tigers".

Other important factors are also in play. Technology has stripped away the ability for many to hold a job and the trend continues.  In other words automation eats jobs. Outsourcing eats jobs too. Between those two trends almost no job growth left. This is a structural situation, not transitional caused by recession due to aftermath of 2008 financial bubble bust.  In other words jobs that disappeared will never return. And jobs in construction sector and finance were artificial and unsustainable in any case, crisis or no crisis (as in "what can't last forever eventually stops." )

We are in the midst of slow motion employment collapse. Eurozone unemployment recently reached 12%. The US has probably 20% rate of involuntary unemployment now. The official unemployment "rate" is lower, but that is because both 60-65 years old and 20 to 24 year olds are dropping out of the wage force.

Add to this "peak energy" problem and the situation looks really bleak. That's the funny thing about oil and modern civilization -- almost everybody in large western urban centers is dependent on mass produced technology (much of which was invented before we were born) and cheap oil (and generally cheap energy), Those who live in those urban centers no longer have any direct control or ability to produce own food or transportation energy or heating. those three activities are completely outsourced. See Peak Oil Demand is Already a Huge Problem.

Globalization is yet another problem. I was actually surprised by how many jobs large corporations managed to shred during 2008-2013 without negatively affecting  profitability.  The impression is that it is no low limit.  Usual wisdom is that if you shred too much, this labor shortage will bite you in a couple of years. This is no longer the case in the USA. No visible backlash at all.  Even consumption that should be suffering due to destruction of middle class in this process is no suffering much, because it was already mostly top 1% game and, as such, is recession proof. Here is one interesting comment form Krugman column Globalization and Macroeconomics - NYTimes.com

Floxo Australia

The analysis is flawed. The issue is not goods trade - on its own, this is relatively benign. The real problem is the associated capital drain. Owners of capital will transfer productive capital abroad for better returns. This process creates deep structural problems for all developed economies. Here are some basic predictions:

Recessions are difficult to manage and may become protracted. In a downturn, capital formation dries up but the capital drain continues. This erodes the output gap. A fiscal stimulus now has less headroom for expansion. On top of that, an increase in domestic demand may be met by investment in productive capital abroad; the domestic investment response is missing. This may even cause a fall in labor productivity ( UK productivity puzzle?).

In short, globalization IS the problem.

Unemployment and well being

Recessions generate inequality in both income and well-being: people who lose their jobs bear a disproportionate burden of the recession.  As Kathleen Geier noted the impact of unemployment on well-being it’s even worse than you thought

While reading this odd and meandering New York Times op-ed this morning, I stumbled upon a link to a fascinating study from last year on the impact of unemployment on non-monetary well-being. It was conducted by Stanford sociologist Cristobal Young, who discovered that unemployment has an even more catastrophic effect on personal happiness that we thought.

The study produced three major findings. The first is the devastating impact job loss has on personal well-being. Job loss, says Young, “produces a large drop in subjective well-being”:

Job loss into unemployment, however, is a different matter; this brings on deep distress that is greater in magnitude than the effect of changes in family structure, home-ownership or parental status. The distress of job loss is also hard to ameliorate: family income does not help, unemployment insurance appears to do little and even reemployment does not provide a full recovery [italics mine].

The second finding is that while unemployment insurance (UI) is successful as a macroeconomic stabilizer, it doesn’t make unemployed people any happier. UI, says Young:

is not central to their sense of well-being… [Snip] …[ I]t does little to support their identity, sense of purpose or self-regard.

Third, job loss has a strong, lasting negative impact on well-being that may persist for years:

[J]ob loss has consequences that linger even after people return to work. Finding a job, on average, recovers only about two thirds of the initial harm of losing a job. It is not clear how long it takes for the nonpecuniary effect of unemployment to heal.

Other research suggests that what Young refers to as “the scarring effect” of job loss can last from three to five years, or even longer. He also notes that “the more generalized fear of becoming jobless” may persist.

Young’s discussion of these findings stresses the inequality theme. He points out that “recessions generate inequality in both income and well-being: people who lose their jobs bear a disproportionate burden of the recession.” He suggests job-sharing as a way to reduce the concentrated misery of unemployment. That’s a great idea that unfortunately never seems to go anywhere. Employers today seem more interested in squeezing as much labor out of employees as possible for the lowest cost. They’re looking to shrink their payroll rather than expand it. And unfortunately, there are very few public policies that promote job-sharing, let alone do it effectively.

The sheer human misery created by the economic downturn has been stunning. The economic damage is, in some ways, the least of it. Another study shows that the long-term unemployed experience shame, loss of self-respect, and strained relationships with friends and family. They even suffer significantly higher rates of suicide.

Yesterday, Paul Krugman and others discussed the impact of economic inequality vs. unemployment on income. Krugman argued that inequality has had the greater impact, and I agree. Among other things, inequality is also the root cause of the unemployment problem. Special interests which have disproportionate power in our political system prevented more stimulus and inflicted an austerity agenda, which has had a disastrous effect on employment. Enacting an economic equality agenda will be huge political challenge, but it’s the only way I can see of ultimately resetting the priorities of our government so that it starts working on behalf of ordinary Americans again.

Official measures of unemployment

There are two popular unemployment measured U3 (commonly cited as "official unemployment rate", which dramatically understates real unemployment) and U6, which is close to actual unemployment rate as was measured during the Great Depression. U3 is often as low as half of U6 (that's why it sometimes called 50 cents unemployment rate). As The Big Picture note in the entry Unemployment Reporting

Its been pretty obvious for sometime that the Financial Media are doing a disservice to their readers by only reporting U3, given how dramatically it understates Unemployment. Indeed, consumer sentiment reports are at deep negative levels that only occur when Unemployment is much than what U3 has been saying. It is painfully obvious that U3 does not paint an accurate view of the Employment situation.

Here's the experiment I propose: Let's start reporting both, with appropriate descriptions of each. Report U3, add U6, provide monthly and year over year changes. Let the reader see the full picture, via BLS data.

See Table A-12. Alternative measures of labor underutilization

Factors that make the current unemployment structural

I would like to stress it again: many factors point to the fact that the current level of unemployment is mostly structural. In other words jobs eliminated will not be coming back. Among the most important factors we can mention:

  1. Neoliberal ideology, which prevents strong government action and direct employment by government on infrastructure projects like during New Deal. Related to the dominance of neoliberalism the hypertrophy of financial sector lead to games with "Main street" after which high, self-sustainable (aka structural) unemployment for in now a destiny for millions. Making the whole society sick.
     
  2. Outsourcing (which partially is due to much better communication channels available and computerized navigation)
     
  3. Computerization (which directly "eats jobs" much like during industrial revolution in the UK).
     
  4. High price of energy, which serves as strong depressing factor. If I remember correctly, a decade ago price of oil above $100 was considered an equivalent to permanent recession. This is never mentioned today, but still might be as true today as it was ten years ago: with the high price of oil the economic recovery is simply impossible. The only option, the only trajectory for economy is permanent stagnation.
     
  5. Growth of "lumpen-proletariat". Narcoaddicts, alcoholics, single mothers from poor families with just high school diplomas,  people with "generosity-based" high school (considerable part of Afro-Americans) and university diplomas from "diploma mills" (essentially fake diplomas),  various categories of handicapped, people with criminal records (substantial part of Afro-American male population), etc.  

The first three factors changed the distribution of power between labor and capital in favor of capital; and those guys are not inclined to take prisoners, when there is a chance to fatten their pockets.  None of the first three factors will probably be reversed soon, although neoliberal ideology is after 2008 entered a zombie state.

Also computerization and Internet allowed capital and political forces behind it much better organize politically. So like in in previous human history well organized and wealthy minority dictates its will less-organized poor majority.

I think that financial capital might eventually experience some setbacks. This bacchanalia of greed with those hedge fund  which hack financial system left and right  might come to an abrupt end with the rise of the price of oil. Even now price of oil indirectly pressure "masters of the universe".  And remember famous slogan of 2008 "Jump suckers" ;-). It reflects the society attitude to financial oligarchy and as such entail certain dangers of "blowback" for all those derivatives games.

Not under Obama watch as he is essentially a sock puppet of financial oligarchy. But eventually setback for "big finance" can happen. At the end of the day it is oil that is the real convertible currency and when oil production is diminishing or flat,  financial oligarchy will be pushed back. 

Measures taken by political elite to save financial institutions after 2008 collapse means that unemployment is a part of a general political problem with neoliberalism as a social system. Under neoliberal regime the elite can't care less about long term unemployment. National Security State ensures the security of the neoliberal elite. Elections in the USA are a sham as two party system effectively blocks candidates outside the list approved by the current elite.  The latter might even see sharp division of the society into "have" and "have nots"  as a solution of oil depletion problem (Economist's View):

bakho:

Exactly.

Monetary policy does not operate in a vacuum. Monetary policy operates in an economic system that includes fiscal and regulatory tools. It is a mistake to lock the fiscal and regulatory tools in a shed.

Fiscal policy ALWAYS operates in a recession, at least in the form of automatic stabilizers, (UI, etc.) and sometimes in the form of additional stimulus.

The meagre automatic stabilizers currently in place are enough for a mild recession, but are woefully short of what is needed in a recession like the recent one.

The primary objection to fiscal policy manipulations is that fiscal policy is more easily politicized. This overlooks the fact that monetary policy is not only political, but bankers (who constitute a wealthy special interest) have an agenda that tilts monetary policy to their own self interests.

The primary objection to using fiscal stimulus to address our unemployment crisis is POLITICAL. Wealthy special interests want pay less taxes and short term stimulus would interfere with their political agenda to roll back spending and reduce spending as a percent of GDP.

Wealthy special interests have the upper hand at the moment because enough politicians are dependent on their campaign donations. However, this politicalization of fiscal policy, doing too little to address unemployment, is the prime force behind the Fed keeping interest rates low. If enough fiscal stimulus was enacted to quickly return to full employment and inflation at or slightly above the target, the Fed would not have to consider extraordinary measures.

Anyone unhappy about extraordinary monetary measures should be urging Congress to fix unemployment now. This is not what our elites are doing. They are complaining about extraordinary monetary measures AND about additional stimulus. This suggests that these policy elites care nothing about social problems of long term unemployment, are content to have the US become a divided nation between haves and have nots and are content to oversee the creation of an underclass in order to concentrate wealthy upward.

When one is saying that unemployment became a structural problem that means that it is immune to the business cycle. For example, during the last economic expansion (Jan 2002 -Dec 2007), the median US household income dropped by $2,000. In other words many Americans were worse off at the end of an economic cycle as jobs went outsourced to low wage countries due to wage arbitrage... 

Collapse of Casino Capitalism and unemployment

The collapse of “casino capitalism” model in 2008-2009 was so profound that all sectors of the economy became depressed. As securitization mess exploded in the face of their creators as it became clear to everybody that the king is naked. Debt overhand of financial industry is tremendous and it was just socialized, not removed. Essentially it became the problem of the USA government debt. In many ways problems the USA faces now are more serious then the problems the country faced during Great Depression because economic crisis doubles as the crisis of dominant ideology -- the ideology of neoliberalism.  And the Great Recession, despite Economic Cycle Institute premature desire to bury it, is still with us. Five years in the making as of 2013.

Ideology on which FIRE sector dominance was based is now questioned and that creates additional problems both nationally and internationally, much more internationally. Internationally it means a substantial loss of the USA "soft power", the factor that played tremendous role in the decade of 1990-2000.  When other country laugh at the US financial oligarchy tribulations it is difficult to open new markets selling old neoliberalism doctrine. due to debt overhand the US dollar is replaced by currency swaps in national currency for several major trading partners of China such as Brazil and Russia.   First of all that makes the crisis even deeper and analogies between the USSR and the USA more sinister. As with Stalinists in USSR who destroyed the country economically, there is a powerful block of republican dead enders and democratic supporters of financial oligarchy (blue dogs) who  will continue to promote the current neoliberal course with its deification of "free markets" (free as in "free shooting zone"), oblivious to consequences of neoliberal policies which eat the society and protected by the size of their accounts. There is nothing new here. Oligarchic  democracies can commit suicide. Actually none lasted long. And with such a formidable political wrecking crew in action and gridlock in Congress even over minor reforms that became less probable.

For all practical purposes two party system actually works like one-party system: democrats were also captured by FIRE industries to the extent that they should not be considered an independent party, but as a slightly more moderate wing of the Republican Party. Similarly by all accounts Obama is a moderate Republican with the policies to the right of such Republican Presidents as Dwight Eisenhower and Theodore Roosevelt. In a way, Democratic Party perform the role of spoiler: it exists for the sole purpose of attracting disgruntled left-wing electorate away from more radical parties. Republicans play symmetrical role for right wing crazies. None can or want to became the agent of change. In this sense Obama electoral slogan "change we can believe in" was a nasty, cruel joke of political insiders over political outsiders.  Note how unceremoniously Obama dumped labor after his reelection, while courting it during his reelection campaign.

As private sector is still downsizing, and government can't be the employer of last resort due to dominance of neoliberal ideology, the whole situation looks more and more like Japanese lost decade. The only area where government can expand workforce are defense contractors (military keysianism):

Minsky, however, argued for a “bubble-up” approach, sending money to the poor and unskilled first. The government - or what he liked to call “Big Government” - should become the “employer of last resort,” he said, offering a job to anyone who wanted one at a set minimum wage. It would be paid to workers who would supply child care, clean streets, and provide services that would give taxpayers a visible return on their dollars. In being available to everyone, it would be even more ambitious than the New Deal, sharply reducing the welfare rolls by guaranteeing a job for anyone who was able to work. Such a program would not only help the poor and unskilled, he believed, but would put a floor beneath everyone else’s wages too, preventing salaries of more skilled workers from falling too precipitously, and sending benefits up the socioeconomic ladder.

It is important to understand that the USA is not just coping with the largest financial crisis in history, the USA is also going through a major restructuring of the American economy as well as the world economy due to plato in oil extraction. This transformation, which was postponed by two decades due the collapse of the USSR (which gave the USA companies half billion of new consumers and huge area to dollarize and buy assets for pennies on a dollar), will be very long, very painful and very slow. One additional factor that complicates the picture of "peak oil", is that it is  more properly can be called "end of cheap oil", as at higher prices more oil became economically available. So this is  not a peak but long plato.

As GDP is highly correlated with the energy consumption, the side effect of peak oil will probably be stagnant (close to zero after inflation) growth and with it speed up in permanent decline of the standard of living for middle class 

Also complicating the situation is the status of baby boomers which lost significant part of their savings during last two bubble bursts and now need to retire or will be pushed out of workforce. Pensions are already cuts either directly or indirectly (via inflation). For example, defined benefit pensions almost disappeared outside of government job force. After housing crash middle class no longer has a realistic prospect to fund their retirement and need to work longer: that increases competition for jobs. For middle aged professionals who are unemployed now the odds of finding reasonably paid work are low and they create additional competition for young people entering work force from universities. People over 50 now face especially poor job prospects.

At the same time corporate executives became corporate aristocracy (with differences in pay raising from 10-20 to 100-200 more of average corporate salary; this is the differences close to what used to exist in feudal societies). Most corporations are taking a lazy way out of the crisis with relentless cost-cutting.  This is a self-defeating strategy as cost cuttings eventually returns back via supply chain and bite the corporation which performs it. But so far this did not happened.

In addition productive sectors of economy are now under pressure of rampant financial speculation which serves as a huge tax on productive sectors of economy. Financial system is controlled by small number of large firms that permanently shifted their main activity into gambling and hacking of the financial system. There is some justice that computers which fueled all this crazy gambling on the strength of global reserve currency led to outsourcing of IT professionals to the extent that this part of US economy was destroyed and became a shadow of its former self in just ten years (2000-2010).

Another important sign of stagnation is that new college graduates face extremely bad job market which squeezes out anybody without substantial experience so for them it's Catch 22. Only graduates form Ivy League colleges has real prospect to get a job after graduation. Plus those with good family connections. In a way education is no longer a guarantee for better paying job, the same situation what was typical for the USSR and other countries of Eastern block during Brezhnev's stagnation.

There is also an interesting transformation of the quality of the education that also parallel transformation  experienced by the USSR in post-war period, but in especially acute form, three decades before the collapse. Private education became more like subprime lending.  It's quality became fake, as the term "diploma mills" suggests.  This rat rate to the lowest possible quality (quality instead of quality) was the central tendency in Brezhnev's USSR. 

In the USA in addition to devaluation of education caused by low quality "everything passes, everybody graduates, just pay" modus operandi of diploma mills, graduates from lower middle class families are now overloaded with debt, which creates for them really difficult situation and push many of them into low level service jobs like waiting. In other words excessive debt after college make getting into workforce using acquired specialty even more difficult as there is no space for long job search, relocation is more difficult and so on and so forth. 

There is also huge criminal industry that flourished around people desperate attempts to find well paying jobs. Many educational scams like "we will make you an ultrasound technician in six month; 90% of our graduates found jobs that pay over $60K in the first month after graduation"  or " software tester in four month; 100% of our graduates find jobs" are trying to capitalize of people desperate to find job, any job and getting into crushing debt trying to improve their chances in job market. Those criminals are not prosecuted.  For more information see:

The main source on new jobs is service sector and the lion share of new positions are McJobs

The employment growth comes mainly from the service sector which feeds off of consumer spending. It was hit by outsourcing especially in such areas as IT. Manufacturing no longer create jobs – outsourcing and computers eat them and you no longer need more people to make more stuff. 

Peter Dornan at EconoSpeak has the following comment which perhaps looks deeper at why the elite is so indifferent to mass unemployment and growing poverty in the U.S.

“…The process is more complicated: where one sits in society and the kinds of problems one typically has to solve leads to a way of thinking, and this manner of thinking then informs politics.

For centuries, the finance perspective has played a central role in economic theorizing, and there is ordinarily a body of research to support it. What I am proposing is this: economic orthodoxy is regaining control over policy because it reflects the outlook of those who occupy the upper reaches of government and business….”

http://economistsview.typepad.com/economistsview/2010/05/a-political-economy-moment.html

IMHO to get the economy out of this mess, government should concentrate on direct job creation (like was the case with Roosevelt administration), not on propping zombie banks hoping that they will generate credit necessary for creation o new jobs. Growth of credit will not happen and if it will happen it will not generate new jobs: most of it  is pushed into speculation.  Spectacular rise of S&P500 in first half of 2013 is a pretty good illustration of the process.

Long term high unemployment is a disaster for the country and disaster for the people, despite the fact that it is irrelevant for banksters, too busy playing in the huge casino they created. Failure to address this problem directly by Obama administration (which in economic terms is the second Summers-Bush administration making a joke in the slogan "change we can believe in") make Obama a real serial betrayer of people who elected him, the role he seems enjoy playing. 

Additional factors the complicates the picture

There are several additional factors that makes addressing the problem of chronic, structural unemployment even more difficult:

  1. The economic crisis coincides with deep ideological and political crisis.

    One can't solve the current problems the US are facing without the reform of the political system and institutions. Power of lobbyists need to be curtailed. Senate needs to be reformed.  Republican Party probably should be dissolved or temporary prohibited like Communists after the dissolution of the USSR as it is unable to reform. As there is no political will for political changes the crisis is structural and little people have to suffer.
     

  2. Real economy was damaged by excessive growth of  FIRE sector and associated "fictional" economy.  Real economy can't support the current size of FIRE sector and it needs now to downsized. There is no smooth, painless route back to the easy-money based false prosperity of Reagan-Clinton-Bush era (age of leveraging). A new economy needs to be created for sustainable recovery because the old, FIRE-based was unsustainable. In 2010 housing probably will decline further. Both commercial and residential construction continues to decline. States continue to cut back budgets creating negative feedback loop. Personal bankruptcies are up, more defaults are on the horizon. The U.S. economy needs to be re-structured, both on the "technical" and inter-sectoral level. That amounts to a collective, system-wide Chapter 11 re-organization. Obama administration has totally failed to sell the public on the validity of "stimulus", however named. Suspicion that this administration is a puppet of big banks had grown sharply. Trying to kick the can down the road will yield Republican Congressional majorities in both houses.
  3. The USA is experiencing the process of separation of workforce into two-tiers, with an elite class of highly paid employees at top companies and a subclass of minimal wage and part time laborers who work for less pay, have less job security and receive fewer benefits.
  4. Foreign wars have substantial financial costs and are an important drag on the USA economy. In the book True Cost of the Iraq Conflict, Joseph Stiglitz was estimated he cost at three trillion dollars of which probably only one trillion was offset by looting of Iraq resources. Afghanistan is about  $2 billion a week, and unless all heroin trade is controlled by CIA there is little that can offset those costs. This is the longest ongoing conflict in U.S. history.  And since Joseph Stiglitz book was written things became worse.

    The disability rates are higher. The cost of caring for the disabled are higher. Almost one out of two people coming back from Iraq and Afghanistan are disabled. This is an unfunded liability of—we calculate now to be almost a trillion dollars, over $900 billion. So, one of the big ways of reducing our deficit is a—is cut back some expenditures....

    With Libya and Syria added to the list, the hidden costs of foreign wars will weight on weakened economics more heavily. Annual cost per soldier oversees is approximately $1 Million per year.
  5. Rent that hypertrophied financial sector  extracts from the rest of the society continues to be a serious drag on the economy. This drag adds to substantial drag caused by foreign wars and military bases as well as huge military industrial complex. While parasites are omnipresent in nature, two large parasites instead of one might spells trouble for the host. Moreover the ascendancy of the financial sector and the decline of manufacturing in the U.S. ("Casino Capitalism" ) has implications similar to consequences of an organized crime running the country.  The creation of tangible products whose utility/quality can be more or less objectively measured were phased out in favor of "financial products," whose utility/quality is much easier to conceal behind legal/technical jargon and junk economics. That created a huge new class of white collar criminals. While Blankfein is out claiming that GS is doing God’s work, the reality is quite different: it became a training ground for new type of ruthless criminals, much more dangerous then bank robbers. Killing of Glass-Steagall by Clinton and leverage obtained by financial sector operating without regulatory limit created prerequisites to the financial panic of 2008. Glass-Steagall enshrined two principles that were abandoned:

    The violation of the second principle directly leads to a regulatory capture in which anything goes and a corresponding observed "need" to accommodate indiscretions, as with the Greenspan/Bernanke put. It perhaps should be identified as THE primary cause, since it left Wall Street with the well-founded (LTCM, Latin America debt crisis, etc. ) and since-proved belief that prudence and capital were quite unnecessary, and that reckless, sociopathic deal making is profitable. Four examples :

  6. Capture of the government and the media by financial sector makes the necessary reforms unlikely. “Failed Regulatory Oversight” is a politically correct term for corruption. The latter was probably the second reason of the current high unemployment . See Toxic Sludge is Good For You: Lies, Damn Lies and the Public Relations Industry by John C. Stauber
  7. Effects of coming CRE crash on unemployment and economy in general might be underestimated of official forecasts.  The occupancy rate is the malls and commercial buildings is still declining. Many strip malls in the country are still are empty. Nice office buildings with signs "for rent" are feature of landscape in 2013. Many buildings, even large well designed buildings with datacenter infrastructure are vacant for years and eventually are demolished.  A full scale commercial real-estate crash can also hurt the economy in a way similar to residential home estate crash. Loans that were made in 2005-2007 were refinanced for three years in 2009-2011. And again in 2012-2013. But eventually they will be coming home to roost.  This also affects the construction  sector.  Only $400 billion of loans came due by the end of 2009, but nearly $2 trillion was refinanced by 2012.  

    The collapse in the U.S. commercial real estate market is fought by the government will maximum force but government resources to fight the crisis are diminishing too. in 2011 state financial crises led to cuts in state budget. In addition, in June 2013 municipal bonds came under fire, making financing more costly.  Commercial debt is approximately one third of the size of the total residential debt and it is concentrated in the same places creating double whammy. In Florida commercial loans, broadly defined, are bigger then residential. Unlike residential real estate, problem with commercial real estate are not solved by growth of population and creation of new families.

    Retail and white-collar positions will be directly impacted by CRE crash. As stores and offices close, mall and office building owners suffer from cuts in cash flow and severely limited prospects for new tenants. Insurance companies, hedge funds and regional banks are heavily invested in CRE and are next in line so some financial jobs will be lost too. Extend and pretend might work but the question is if there is enough liquidity to stretch loans.
     

  8. Computers eat people jobs. Automation and the recent advances in robotic and computers make more and more workers redundant.  The latest victims are cashiers in supermarkets. Manufacturing jobs continue to disappear not only due to outsourcing, but also due to new computerized technologies. The reality is that manufacturing employs a mere 11.5 million workers in the U.S.A., or 9% of the workforce and this percentage will never increase substantially.

    My feeling is that even in corporate IT after drastic cuts that were the standard game for large corporations in 2008-2009, additional cuts are possible. But the situation on the ground is somewhat paradoxical as real cuts runs deeper that you would assume from headcount: a lot of current IT personnel belongs to "untouchable" caste -- wives of somebody higher up in this or linked by the supply chain company, sons of somebody important and so on. I can't give you percentage, but probably 10%-20% of "untouchables" would be an educated guess. So removing of at least 10% of the current IT workforce means removal of 12% or more those who do actual work. 

    Another factor is that cuts in IT are one way street as they stimulate replacing of people with technology and there are still tremendous potential for computerization of many areas including first of all IT itself.

    For example all this cloud initiatives are in disguise politically correct way to move things in the direction of higher automation and outsourcing because under the surface there is not much innovation in those "new" technologies.
     

  9. Oil prices despite coming down in September 2011 are back to $85-$90 level.  That level is putting additional stress on manufacturing, transportation and agriculture. Solid US growth of the past decade and earlier was dependent on two factors:

    With the rising oil all bets for re-inflating the economy (aka kicking the can down the road) are off.
     

  10. Indirect job creation strategies via stimulus to businesses seized to produce meaningful job generation. Reaganomics has put the U.S. economy into a high-unemployment equilibrium when the high-rate of labor unemployment is reinforced by the shortage (or absence) of idle, but useful capital stock due to offshoring and  outsourcing as well as chronically low consumer demand due to high level of debt. Only service sector and financial jobs can be generated with minimum capital infrastructure (for financial jobs internet connection and computer are almost all that needed). Automation of production lead to less and less workers.
     
  11. Confidence is really low.  Businesses have no confidence that customers ever return, therefore are not hiring much and scaling down the production. This chicken-egg-chicken-egg cycle has to be broken, but I am really puzzled how that is going to happen without large government role in the economy, which is big no-no for ideological consideration (the USA preaches neoliberalism as a "civil religion" similarly like USSR and other "communist" countries preached Marxism). Without large government projects employees have no confidence in their jobs, therefore are not consuming much.
     
  12. In the face of growing unemployment the current administration proved to be as incompetent as Bush administration in case of Hurricane Katrina. And that means totally incompetent.

Effects on population

Unemployment is a very harsh condition, that traumatize the workers greatly (Sliding into the Great Depression)

At first the unemployed searched eagerly and diligently for alternative sources of work. But if four months or so passed without successful reemployment, the unemployed tended to become discouraged and distraught.

After eight months of continuous unemployment, the typical unemployed worker still searches for a job, but in a desultory fashion and without much hope.

And within a year of becoming unemployed the worker is out of the labor market for all practical purposes: a job must arrive at his or her door, grab him or her by the scruff of the neck, and through him or her back into the nine-to-five routine if he or she is to be employed again.

The USA as a whole is facing the worst labor market prospects since 1929. In terms of duration of elevated unemployment we already rival the early 80s. But in no way we can expect a steep decline in the rate of unemployment in the way that happened in 1983 when unemployment declined at a brisk 2%. And permanent high unemployment creates economic conditions that feel like the USA brought back slavery. The new reserve army of the unemployed drives wages down, while average productivity continues to rise, as a way to generate surpluses to be channeled into executive bonuses. The whole sectors like IT were decimated by outsourcing. Unfortunately given the current overcapacity and ample supply of qualified job seekers in many occupations, I certainly don't expect labor arrangements and employment conditions to become more favorable.

Looks like 7% unemployment is going to become the "new normal". In any case government statistics is very suspect (see Fake Employment Statistics) and actually unemployment is higher. For example, the declining participation in work force means that actual unemployment rate is higher then reported.

Obama-Bush administration saved banks waiting most of taxpayers money and piling up debt in hopes that they restore credit flow in the economy. But this was a fallacy: banks aren’t lending to prospective home buyers, small businesses and real estate developers because bankers recognize the obvious — many of those loans won’t get repaid. Of course, as bankers refuse to lend, the stagnation becomes a self-fulfilling prophecy. But since society is burdened with too much debt, piling on more debt would not be the solution in any case.

There is no smooth, painless route back to the easy-money based false prosperity of Reagan-Clinton-Bush era (age of leveraging). We entered the age of deleveraging. Obama’s “you owe us” message to the banks is the height of naïveté’ and tells us a lot about him. In 2013 our problems are worse than they were in 2007 before the crisis. Peak credit is as dangerous for the economy as peak oil...

Corruption of economic profession

The inability of the economics profession to forecast unemployment in the short, medium, or long run would be downright comical, if not for the human tragedy involved. While the Occam Razor approach suggests incompetence as a culprit, I think it's a manifestation of the corruption of the profession by financial interests (with some "don't rock the boat" variations).  First of all, economists much like elected officials and Wall Street executives have a vested interest in keeping the perception of a robust economy. The employment data announced each month are critical to this perception. That's why government "prints up jobs out of thin air" the same way the Federal Reserve prints money. This is economic propaganda and as such it is not that much different from the over-stated earnings practiced by companies of all striped and colors.

The second problem is that fiscal policy cannot solve the problem of job creation in all circumstances, especially in deleveraging environment. Position of people like The Fed Can Help, But Fiscal Policy Is The Key To Job Creation ) is a step in right direction. But without something like Jobs Corps to get out of the current situation is very difficult. In 1982 SETH S. KING wrote in NYT (PROPOSAL FOR JOB CORPS RECALLS ROOSEVELT PLAN):

Few of this city's recent celebrations of Franklin Delano Roosevelt's 100th birthday have passed without nostalgic references to the Civilian Conservation Corps, that President's cherished vehicle for getting thousands of jobless, hungry youths off the streets and putting them to work refurbishing the nation's parks and forests.

With today's unemployment rate nearing a postwar high and new thousands of young people again unable to find work, Congress is preparing to wrestle with the Reagan Administration for money to start a new youth job training program and reconstitute the Job Corps, the pale copy of the old C.C.C. that emerged in the Carter days.

But there is little in these plans that is likely to reproduce those Depression era pictures of sturdy, bare-chested young men planting trees, building bridges and saving the nation's battered farmlands.

Nor is today's procedure-encumbered Washington, where a year usually elapses between idea and action, likely to duplicate the astonishing start on the C.C.C., which four months after being conceived had been approved by Congress and had more than 300,000 young men being clothed, housed, fed and paid $30 a month while they breathed all that fresh air.

In this crisis the main lesson was that theologically captured by free market fundamentalism government can destroy economy at a really staggering rate. This is "Back in the USSR" situation. Eight years of Clinton and eight years of Bush administration (see The Economic Consequences of Mr. Bush, by Joseph E. Stiglitz) are as good proof of this as one can ever get. Clinton and Bush regimes (especially Rubin-Greenspan alliance and "vice president from an undisclosed location" activities)  proved to be a real wrecking crew. But that does not mean that government cannot put it weight on easing the unemployment burden. Incentives such a investment tax credit matters. Not tax cuts for the rich, but direct investment credit. direct job creation which is anathema to market fundamentalism would be even better and less costly. Roosevelt administration did it, so why not capitalize on positive experience and develop it further ?

In this crisis the main lesson was that theologically captured by free market fundamentalism government can destroy economy at a really staggering rate.

In any case socializing losses and privatizing gain (crony capitalism) should be downsized. Insurance for gambling by big banks should be cut.

As long as economists believe their report card is the rise in GDP (GDP Mania), we will remain in a failure mode. A country is not defined by GDP but by the quality of life of its citizens. And quality of life cannot be assessed by a simplistic, one-dimensional metric such as GDP. The key dimensions for well-being are: employment, earnings, wealth, health, infrastructure, and living conditions. In that particular order. With employment as the critical factor: the USA looks like an underdeveloped banana republic by the current measure of unemployment and in many respect has became such.

It looks like high persistent unemployment became the defining feature of this recession. Jobs creation prospect in 2014 look pretty grim -- there is no sector other then government that can absorb redundant workforce and automation in manufacturing makes sure that those who are unemployed right now will stay unemployed in the foreseeable future. Most jobs cut are permanent, not temporary, especially in such sectors as IT (structural shift). As Robert Reich noted:

...The basic assumption that jobs will eventually return when the economy recovers is probably wrong. Some jobs will come back, of course. But the reality that no one wants to talk about is a structural change in the economy that's been going on for years but which the Great Recession has dramatically accelerated.

Under the pressure of this awful recession, many companies have found ways to cut their payrolls for good. They’ve discovered that new software and computer technologies have made workers in Asia and Latin America just about as productive as Americans, and that the Internet allows far more work to be efficiently outsourced abroad.

This means many Americans won’t be rehired unless they’re willing to settle for much lower wages and benefits. Today's official unemployment numbers hide the extent to which Americans are already on this path. Among those with jobs, a large and growing number have had to accept lower pay... Or they've lost higher-paying jobs and are now in a new ones that pays less.

The current crisis also means that financial services and real estate (FIRE) economy, this gigantic casino that the US government was trying to build for the last 25 years is now in trouble and shed workers in vast numbers (although working condition in financial industry are still good or very good depending on your position in the food chain). But the profitability of large banks and can achieved only by oversees expansion and derivatives games with foreign assets. The most profitable essentially converted themselves into hedge funds, getting most profits from trading operations, not from the traditional banking activities.

The simplest and the most obvious solution in the current situation is to cut work week and hours of work (4 days six hours a day). That will put enough people to work to make unemployment bearable and it might slightly help entertainment and hospitality industries which now is suffering more that others. From the other point of view if lower standard of living is inescapable, why not to make the transition smoother and more fun by cutting work hours.

Military Keynesianism no longer works

But that's not enough. The USA needs drastically cut military budget. Military Keynesianism no longer works as expected.  As John Maudin in his e-letter proposed (see Thoughts on the Economy- Problems and Solutions):

Mauldin: Unemployment is likely to continue to rise and last longer than ever before. We have to take care of the basic needs of those who want work but can't find it. Unemployment insurance should be extended to those who are still looking for work past the time for benefits to expire, and some program of local volunteer service should be instituted as the price for getting continued benefits after the primary benefits time period runs out. Not only will this help the community, but it will get the person out into the world where he is more likely to meet someone who can give him a job. But the costs of this program should be revenue-neutral. Something else has to be cut.

Mish: Can we deal with 15 million volunteers? Somehow I doubt it.

Mauldin: We have to re-think our military costs (I can't believe I am writing this!). We now spend almost 50% of the world's total military budget. Maybe we need to understand that we can't fight two wars and support hundreds of bases around the world. If we kill the goose, our ability to fight even one medium-sized war will be diminished. The harsh reality is that everything has to be re-evaluated. As an example, do we really need to be in Korea? If so, why can't Korea pay for much of the cost? They are now a rich nation. There are budgetary fiscal limits to being the policeman for the world.

Mish: Bingo. We can easily slash our military budget by 70% and still be the most powerful nation in the world. Moreover, it is time to declare the war in Iraq and Afghanistan over, pack our bags and leave. Gradually, over the next 5-8 years we should bring home all our troops from literally every county they are stationed.

This chart shows the absurdity of our spending.

Chart courtesy of Global Issues - World Military Spending.

By the way that chart does not include the latest increase in the US military budget. Please consider US lawmakers pass 680-billion-dollar defense budget bill

The US House of Representatives passed a 680-billion-dollar defense authorization bill on Thursday that includes funds to train Afghan security forces and more mine-resistant troop carriers.

Lawmakers defied President Barack Obama's veto threat and approved 560 million dollars to continue work on an alternative engine for the F-35 fighter jet built by General Electric and British manufacturer Rolls-Royce.

The compromise legislation would also raise military pay by 3.4 percent -- half a percentage point higher than Pentagon recommendations -- and assign 6.7 billion dollars for mine-resistant armored vehicles known as MRAPs, which is 1.2 billion dollars more than the administration had proposed.

Nearly $700 billion dollars of "defense" spending. The amount needed for actual defense is 20% of that at most, and more likely 5%. Balancing the budget is easy if you start here.

Mauldin: Glass-Steagall, or some form of it, should be brought back. Banks, which are subject to taxpayer bailouts, should not be in the investment banking and derivatives-creating business. Derivatives, especially credit default swaps, should be on an exchange, and too big to fail must go. Banks have enough risk just making loans. Leverage should be dialed down, and hedge funds selling what amounts to naked call options in any form, derivative or otherwise, should be regulated.

Mish: What we need to do is get rid of the Fed, FDIC, and fractional reserve lending. Regulation has failed every step of the way. Regulation created Fannie Mae, Freddie Mac, and the Fed. Regulation by the SEC anointed Moodys, Fitch, and the S&P as debt rating companies. We do not need more regulation, we need less regulation, a sound currency, and no Fed. Regulation is clearly the problem, yet the cries for still more regulation come from nearly every corner save the Austrian economists.

Mauldin: Let me see, is there any group I have not offended yet? But something like I am suggesting is going to have to be done at some point. There is no way we can continue forever on the current path. At some point, we will hit the wall. The fight between the bug and the windshield always ends in favor of the windshield. The bond market is going to have to see a credible effort to get back to a reasonable deficit, or we risk a very difficult economic environment. The longer we wait, the worse it will be.

Mish: "Is there any group I have not offended yet?" Yes. You failed to offend those on public pension plans. Not to fear, I did that myself in Five Major Pension Problems - One Simple Solution.

Unsolvable Problems


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[Sep 18, 2019] Neoliberalism in action: Another School Leadership Disaster Private Companies Work an Insider Game to Reap Lucrative Contracts

Notable quotes:
"... By Jeff Bryant, a writing fellow and chief correspondent for Our Schools , a project of the Independent Media Institute. He is a communications consultant, freelance writer, advocacy journalist, and director of the Education Opportunity Network, a strategy and messaging center for progressive education policy. His award-winning commentary and reporting routinely appear in prominent online news outlets, and he speaks frequently at national events about public education policy. Follow him on Twitter @jeffbcdm. produced by Our Schools , a project of the Independent Media Institute. ..."
"... One of the first school districts to become entangled in the conglomeration of firms Wise and Sundstrom assembled was Nashville, which in 2016 chose Jim Huge and Associates to help with hiring a new superintendent. The following year the board hired Shawn Joseph, whom Huge had recommended. ..."
"... Shortly after Joseph arrived in Nashville, according to local News Channel 5 investigative reporter Phil Williams, he began pushing the district to give $1.8 million in no-bid contracts to Performance Matters, a Utah-based technology company that sells "software solutions" to school districts. ..."
"... In addition to pushing Performance Matters, Williams reported, Joseph gave an "inside track" to Discovery Education, a textbook and digital curriculum provider and another company he and his team had ties to from their work in Maryland. ..."
"... By June 2018, Nashville school board member Amy Frogge was questioning Joseph about possible connections these vendors might have to ERDI. A district audit would confirm that ERDI's affiliated companies -- including Performance Matters, Discovery Education, and six other companies -- had signed contracts totaling more than $17 million with the district since Joseph had been hired. ..."
"... "Too often, national search firms are also driven by money-making motives and/or connections with those seeking profit," Frogge contended. That conflict of interest is a concern not only in Nashville but also in other districts where school leaders with deep ties to education vendors and consultants have resulted in huge scandals that traumatized communities and cost taxpayers millions. ..."
Sep 18, 2019 | www.nakedcapitalism.com

Posted on September 18, 2019 by Lambert Strether

Lambert here: More corruption in the professional class.

By Jeff Bryant, a writing fellow and chief correspondent for Our Schools , a project of the Independent Media Institute. He is a communications consultant, freelance writer, advocacy journalist, and director of the Education Opportunity Network, a strategy and messaging center for progressive education policy. His award-winning commentary and reporting routinely appear in prominent online news outlets, and he speaks frequently at national events about public education policy. Follow him on Twitter @jeffbcdm. produced by Our Schools , a project of the Independent Media Institute.

In July 2013, the education world was rocked when a breaking story by Chicago independent journalist Sarah Karp reported that district CEO Barbara Byrd-Bennett had pushed through a no-bid $20 million contract to provide professional development to administrators with a private, for-profit company called SUPES Academy, which she had worked for a year before the deal transpired. Byrd-Bennett was also listed as a senior associate for PROACT Search, a superintendent search firm run by the same individuals who led SUPES.

By 2015, federal investigators looked into the deal and found reason to charge Byrd-Bennett for accepting bribes and kickbacks from the company that ran SUPES and PROACT. A year-and-a-half later, the story made national headlines when Byrd-Bennett was convicted and sentenced to prison for those charges. But anyone who thought this story was an anomaly would be mistaken. Similar conflicts of interest among private superintendent search firms, their associated consulting companies, and their handpicked school leaders have plagued multiple school districts across the country.

In an extensive examination, Our Schools has discovered an intricate web of businesses that reap lucrative school contracts funded by public tax dollars. These businesses are often able to place their handpicked candidates in school leadership positions who then help make the purchasing decision for the same businesses' other products and services, which often include professional development, strategic planning, computer-based services, or data analytics. The deals are often brokered in secrecy or presented to local school boards in ways that make insider schemes appear legitimate.

As in the Byrd-Bennett scandal, school officials who get caught in this web risk public humiliation, criminal investigation, and potential jail time, while the businesses that perpetuate this hidden arrangement continue to flourish and grow.

The results of these scandals are often disastrous. School policies and personnel are steered toward products that reward private companies rather than toward research-proven methods for supporting student learning and teacher performance. School governance becomes geared to the interests of well-connected individuals rather than the desires of teachers and voters. And when insider schemes become public, whole communities are thrown into chaos, sometimes for years, resulting in wasted education dollars and increased disillusionment with school systems and local governance.

While media accounts generally frame these scandals as examples of corrupt school leaders who got caught and brought to justice, reporters rarely delve into the corporate-operated enterprises that undergird the whole system.

A Potent Business Model

Months before Byrd-Bennett's conviction, another individual connected to the Chicago scandal, SUPES co-owner Gary Solomon, pleaded guilty to wire fraud charges related to a scheme that diverted over $5 million in public money from the Chicago contracts into his private pocket.

Solomon, who had been forced out of a previous job as a high school administrator after he was accused of racist comments and "preying" on female students, cofounded SUPES -- along with sister companies PROACT Search and Synesi Associates -- with his former student Thomas Vranas, who also pleaded guilty to charges stemming from the Chicago deals.

Although Solomon and Vranas got caught and were convicted for their scheme, they nevertheless stumbled on a potent business model that combined PROACT's superintendent search services with SUPES Academy professional development programs and consulting by Synesi Associates to help districts "implement reform strategies." Combining leader recruitment with leadership training and consulting gave Solomon and Vranas three ways into a business relationship with a school district and multiple ways to upsell clients into more expensive new contracts.

New administrators PROACT helped place in leadership roles could be reliable allies for pitching professional development services to the district. School districts that had employed SUPES might be more inclined to hire PROACT for a leadership search. And Synesi would have an inside track for its consulting services. Further, any of the firm's school leader contacts who became idle between full-time jobs, which often happens in this profession, would be able to work for the firm as "associates."

School districts may have welcomed this arrangement as a form of "one-stop shopping" for their needs, but it's not hard to see how it could lead to conflicts of interest and a veil for fraud.

Chicago was not the only district that fell for the pitch. Shortly after news of the Byrd-Bennett scandal broke, school districts in DeKalb County , Illinois; Fayette County (Lexington), Kentucky; and Lancaster , Pennsylvania ended their contracts with PROACT.

In Iowa City, Iowa, a local reporter found the district had a contract with Synesi Associates to conduct an audit of the district and then hired PROACT to recruit candidates for a vacant director position. At the same time, superintendent Stephen Murley took 34 days off work to do paid consulting for those two organizations and for SUPES Academy.

In St. Louis , superintendent Kelvin Adams started consulting for SUPES shortly after the school board awarded a $125,000 contract to the firm, Sarah Karp and Melissa Sanchez reported. The district also awarded a $16,500 no-bid deal to Synesi.

But Solomon and Vranas did not invent this money-making strategy, nor did it die when they were convicted and sent to jail.

From Retail Store to Mega-Mall

In June 2016, the Chicago Sun Times reported that in the wake of the Byrd-Bennett scandal, parts of SUPES Academy were purchased by Joseph Wise and his partner David Sundstrom. Their Chicago-based firm Atlantic Research Partners (ARP) had already gotten at least $5 million in recent business from Chicago schools. (Sundstrom would later contend ARP rescinded the agreement to acquire SUPES and that the "only remaining connection between the companies" was a licensing of training material.)

Wise founded ARP with Sundstrom in 2007 after both had been ousted from their jobs in the Duval County, Florida, school district due to alleged "serious misconduct." According to the ARP website, the project's mission was to launch a "teacher-training program focused on instructional coaching and school capacity-building."

Around the same time ARP was acquiring parts of SUPES, the company also merged with Jim Huge and Associates, a firm with deep experience in school superintendent and other talent searches. Huge had also served as chief strategy officer for PROACT Search. The announced rationale of the merger was "to maximize seamless delivery of the intensive executive services to schools and school leaders."

Undoubtedly, what Wise and Sundstrom assembled was similar to the three-part business model Solomon and Vranas put together. What was different, though, was Wise and Sundstrom would expand on the model with their subsequent acquisition of Education Research and Development Institute (ERDI).

According to Louisiana school teacher and wily blogger Mercedes Schneider , Sundstrom registered an entity called ERDI Partners as a business with a Florida address in 2017.

But an entity called ERDI had been in existence since at least 2005 when an article in Education Week described the company as an intermediary organization bringing together school administrators and education vendors to help companies improve the products and services they offer school systems. Specifically, ERDI arranged get-togethers by paying superintendents consulting fees plus expenses to travel to conferences at luxury resorts where they would meet with company representatives. The companies, in turn, underwrote the conferences with substantial fees paid to ERDI.

Critics of ERDI argue that the company's model for paying school administrators for their advice on education products inevitably leads to conflict of interest issues when those administrators are presented with offers to purchase products promoted by ERDI.

Byrd-Bennett had a relationship with ERDI dating back to at least 2014 and was listed as senior advisor on the firm's website while she was employed as Chicago schools' CEO.

With the acquisition of ERDI, Wise and Sundstrom could transform their business model from a lone retail operation to a mega-mall of education vendors of all kinds.

'The Search Was Manipulated'

One of the first school districts to become entangled in the conglomeration of firms Wise and Sundstrom assembled was Nashville, which in 2016 chose Jim Huge and Associates to help with hiring a new superintendent. The following year the board hired Shawn Joseph, whom Huge had recommended.

Shortly after Joseph arrived in Nashville, according to local News Channel 5 investigative reporter Phil Williams, he began pushing the district to give $1.8 million in no-bid contracts to Performance Matters, a Utah-based technology company that sells "software solutions" to school districts.

Williams found Joseph had spoken at the company's conference and he had touted the company's software products in promotional materials while he was employed in his previous job in Maryland. Williams also unearthed emails showing Joseph began contract talks with Performance Matters two weeks before he formally took office in Nashville. What also struck Williams as odd was that despite the considerable cost of the contract, district employees were not required to use the software.

In addition to pushing Performance Matters, Williams reported, Joseph gave an "inside track" to Discovery Education, a textbook and digital curriculum provider and another company he and his team had ties to from their work in Maryland. With Joseph's backing, Discovery Education received an $11.4 million contract to provide a new science, technology, engineering, art, and math (STEAM) program even though a smaller company came in with a bid that was a fraction of what Discovery proposed.

By June 2018, Nashville school board member Amy Frogge was questioning Joseph about possible connections these vendors might have to ERDI. A district audit would confirm that ERDI's affiliated companies -- including Performance Matters, Discovery Education, and six other companies -- had signed contracts totaling more than $17 million with the district since Joseph had been hired.

Frogge also came to realize that all these enterprises were connected to the firm who had been instrumental in hiring Joseph -- Jim Huge and Associates.

"The search that brought Shawn Joseph to Nashville was clearly manipulated," Frogge told Our Schools in an email, "and the school board was kept in the dark about Joseph's previous tenure in Maryland and his relationships with vendor companies."

Frogge said some of the manipulation occurred when the search firm told school board members that disputes among current board members -- over charter schools, school finances, and other issues -- indicated the district was "'too dysfunctional' to hire top-level superintendents and therefore needed to hire a less experienced candidate."

But previous investigations of school leadership search firms conducted by Our Schools have found companies like these frequently forego background checks of prospective candidates they recommend, promote favored candidates regardless of their experience or track record, and push board members to keep the entire search process, including the final candidates, confidential from public scrutiny.

"Too often, national search firms are also driven by money-making motives and/or connections with those seeking profit," Frogge contended. That conflict of interest is a concern not only in Nashville but also in other districts where school leaders with deep ties to education vendors and consultants have resulted in huge scandals that traumatized communities and cost taxpayers millions.

In the Youngstown City School District in Ohio, CEO Krish Mohip became mired in questions about his role as a paid consultant for ERDI while the district had a $261,914 contract with a partner company of ERDI. Under calls for his resignation, Mohip left before his contract was up.

Beaufort County School District in South Carolina became the subject of an FBI investigation because of contracts with ERDI and 30 other companies connected to the firm while superintendent Jeff Moss worked as a paid consultant for ERDI. He resigned from the district two years before his contract was up.

In Pittsburgh, superintendent Anthony Hamlet drew scrutiny when reporters found the district spent more than $14 million on dozens of no-bid contracts to firms connected to ERDI at the same time Hamlet was serving as a paid consultant with the company.

In Baltimore County, Maryland, Shaun Dallas Dance made national headlines when he was convicted of perjury committed during his time as superintendent of the district. Dance had concealed $4,600 he'd been paid by ERDI. After Dance participated in confidential meetings with vendors at an ERDI conference, the district extended contracts from companies connected to the firm.

Obviously, school board members could avoid these conflicts by avoiding leadership search firms and consultants connected to ERDI. But that is easier said than done.

After Baltimore County's troubles with Dance, it hired the independent firm Ray and Associates to conduct a search to find an interim leader. The search resulted in six finalists, from which the board chose Verletta White. Shortly after she took the job, the board's ethics review panel found she had violated financial disclosure rules and "used the prestige of her office or public position for private gain" by accepting compensation from ERDI.

Indeed, superintendent search firms frequently fail to find conflicts of interest and other problems in the candidate background checks they conduct. And some of these firms operate side businesses that also lead to conflict of interest issues.

A Revolving Door of Business Deals Funded by Taxpayers

One of the largest superintendent search firms in the United States, Schaumburg, Illinois-based Hazard, Young, and Attea (HYA), is part of the ECRA Group , a consulting firm providing an array of services to schools.

ECRA claims to have worked with over 1,000 districts, but a close examination of how the company worked with a number of school districts in Illinois reveals how the firm uses a revolving-door business model in which its search service rotates administrators into and out of leadership positions while the company uses those leadership connections to successfully upsell districts into expensive long-term consulting contracts funded by taxpayers.

ECRA's business relationships with Oak Park Elementary District 97 in Illinois go back to at least 2010 when it was hired to help replace outgoing superintendent Constance Collins. With HYA's help , the district hired Albert Roberts. In 2013, during Roberts' tenure, school board minutes show the district considered a plan to hire ECRA to analyze the district's achievement data at a cost of $74,000 a year. The following year, the district hired ECRA to produce an analysis of the achievement gap between white and nonwhite students in the district. Board minutes from 2015 show the district continuing to work with ECRA.

When Roberts retired, District 97 used HYA again for a superintendent search that resulted in hiring Carol Kelley. Kelley currently appears in ECRA's marketing literature touting the firm's Strategic Dashboard, which District 97 apparently employs.

Former superintendent Collins was hired to lead Round Lake District 116, also in Illinois, just before HYA and ECRA acquired the district's superintendent search and strategic planning contracts. Under her tenure, Round Lake paid ECRA $75,918 for consulting services in 2016 , 2017 , and 2018 . Collins retired from Round Lake in 2018, but, according to her LinkedIn page, she became an HYA associate in 2017. She also serves on the advisory board of ECRA, according to her bio at a nonprofit for developing school leaders.

Another Illinois district, Niles Township High School District 219, placed its superintendent on administrative leave after it became known she was the daughter of the president of ECRA, which had a contract with the district worth $149,419 and $120,389 in the final two years of her tenure. (She claimed that relationship with ECRA dated to before she was made superintendent, but she decided to resign anyway.)

Huntley Community School District 158, also in Illinois, had contractual arrangements with ECRA dating to at least 2009 when John Burkey was superintendent. When Burkey resigned in 2017, District 158 hired HYA to find a new superintendent at a cost of $17,500. At the end of a hiring process in which HYA kept all finalists confidential , District 158 announced it had hired Scott Rowe. Under his leadership, District 158 spent $94,980.11 on ECRA in 2018 alone.

One more example in Illinois: Evanston/Skokie School District 65 has hired ECRA for a variety of consulting services since at least 2010 when it paid the firm $22,737.50, according to state records, to survey the district's administrators. By 2013, Evanston/Skokie considered ECRA a "long-standing partner" and hired the firm to help pick its new superintendent. Outgoing superintendent Hardy Murphy also recommended the district hire the firm for teacher appraisal work.

Based on HYA's recommendations , Evanston/Skokie hired Paul Goren in 2014, and under his tenure, checks continued to flow to ECRA's consulting business, including $129,855.92 in 2015 . However, Goren's tenure was troubled and brief, and in 2019 he resigned with a $100,000 severance package. A local reporter noticed that unmentioned in the district's settlement statement was that under his leadership "the district's own progress reports [showed] declines in test scores across all groups of students and district losing ground against its own five-year targets."

ECRA's own leadership has also been embroiled in conflict of interest issues. Current ECRA president Glenn "Max" McGee resigned from his last superintendent job, in Palo Alto, California after an outside investigation found the district had mishandled claims of sexual assault. With a payout of roughly $150,000, McGee, on his way out the door, recommended the district hire HYA to conduct the search for his replacement, just after he had accepted the offer to become leader of ECRA. The district went with McGee's recommendation.

When asked whether this relationship among McGee, ECRA, and the Palo Alto district was a possible conflict of interest, McGee told Our Schools in a phone call that he "stayed out of the search" to fill his old position. Of his replacement, Don Austin from nearby Palos Verdes Peninsula Unified School District in California, McGee admitted being an acquaintance of "many years."

Who's to Blame?

When controversies arise over superintendents and contracts with outside services, private firms that are responsible for pushing these hiring and outsourcing decisions are quick to blame school board members who signed off on the decisions. And critics of public schools frequently use these scandals to argue that democratically elected school boards are dysfunctional and need to be scrapped for other governance structures.

These criticisms leave a lot of context out.

First, being a school board member is customarily a part-time job paying very little money. And school board members are elected to serve as representatives of parents and voters, not to be experts on school finance and administration.

"School board members, although often well intentioned, are sometimes too unqualified and uninformed to exercise effective oversight of spending, and board members are not aware of the personal relationships and personal interests that may be driving decisions by administrative leaders," Nashville board member Frogge explained.

Also, there are multiple ways superintendents can keep board members in the dark about the inner workings of contractor relationships and district operations.

"From the beginning, Joseph surrounded himself with those who promoted him, including organizations he hired to 'train' the board," Frogge explained. "Joseph also prohibited all district employees from speaking to school board members, which prevented board members from recognizing leadership problems during the early days of his tenure. When board members finally began to confront Joseph about problems, including disturbing financial irregularities and his failure to follow board policy, Joseph lied to board members, exacted retribution from those questioning him, and stirred up controversy to distract from the issues at hand."

That said, Frogge noted school boards have alternatives to using private search firms that promote tainted candidates willing to feed the search firms' side businesses.

"School board members need to become better informed and more savvy about profit motives and organizations that seek to influence their selection," she wrote. "School boards can instead opt to hire a local school boards association (for example, the Tennessee School Boards Association) or a local recruiter with a reputation for personal integrity to conduct a search. They can also choose to hire from within."

How school boards decide to avoid conflicts of interest with school leaders and outside consulting firms is "critical" according to Frogge because decisions that are driven by these insiders "can lead to catastrophic outcomes for students and staff."

Among those negative outcomes are increased community acrimony, wasted education funds, and career debacles for what could perhaps have been promising school leaders.

In the case of Joseph and Nashville, controversies with his leadership decisions strongly divided the city's black community, and taxpayers were stuck with a $261,250 bill for buying out the rest of his contract. As a result of the fallout, Joseph lost his state teaching license, and he vowed never to work in the state again.

In the meantime, HYA continues to win contracts for high-profile superintendent searches, and ERDI's conferences bringing school leaders and vendors together continue to sell out .

[Sep 16, 2019] When Students Melt Down Over a 'B'

Sep 16, 2019 | www.theamericanconservative.com

When Students Melt Down Over a 'B' Rampant grade anxiety is a reflection of deeper American social dysfunction, with our children the biggest victims. By David Masciotra September 17, 2019

By Marjan Apostolovic /Shutterstock The library on campus of a small Catholic university in Illinois was largely empty. Since the administrators had replaced most of the bookshelves with plush furniture, conference tables, and chairs, it better resembled an airport terminal just before a redeye. A handful of students were staring intensely into computer screens, while another pair talked loudly -- no more than 10 feet from the silent, visibly demoralized librarian -- about the rap song that one of them had just played moments earlier. Not one student was near a book. There wasn't a single newspaper or journal in sight. The university had canceled its subscriptions and removed the periodical section a few semesters earlier.

I was making my way toward the front door when one of the students from my Intro to Literature course stopped me, tears rolling down her cheeks, her body nearly convulsing as she attempted to suppress her sobs. Because any human contact is potentially criminal, I ignored my impulse to offer a consoling hand to the shoulder, and asked what was wrong. Expecting her to tell me about a personal tragedy -- perhaps the terminal diagnosis of a loved one -- I almost began to weep myself when she said, "You gave me a 'B' on the paper."

Her crying made the harangue that followed difficult to fully comprehend, but it seemed that she must maintain a certain GPA to remain in athletics. When I countered that a "B" is a good grade and that she would have plenty of time to aspire towards an "A" on other assignments, she began pleading with me for opportunities to "bring up the grade." I declined, and asked if some other, more personal factor was contributing to her stress over a passing grade on one paper in a course entirely unrelated to her major. She insisted that there was not. Helpless and baffled, I wished her well, offered her reassurance, and proceeded out of the library and into the parking lot.

Fielding an existential meltdown, complete with a crying jag, is not part of my professional training. Yet rarely does a semester go by without some kind of grade-related complaint, appeal for mercy, and panic attack. When a student appears as if he has just undergone a life-altering trauma because he's realized he is hanging over the edge of a "C," I think of my father, who at around the same age was in Vietnam. We all have our crosses to bear, whether surviving guerrilla warfare or dealing with a professor who will not give extra credit.

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"Grade anxiety," to use the more popular term, is not unique to my students or school of employment. Studies from Penn State and reports from Psychology Today , Boston University , and many other sources have confirmed that debilitating anxiety is now the leading mental health problem for college students. A quick Google search of "grade anxiety" reveals endless pages of advice to students apoplectic about their exam scores, the professors on the receiving end of their complaints and concerns, and the parents who cannot cope with anything other than perfection.

In all fairness, contemporary college students, contrary to Baby Boomer sanctimony, do have a tougher task than their predecessors. More of them work, often full-time, while completing their degree requirements, and must shoulder heavy financial burdens to acquire their education -- which they understand they will carry, in the form of student debt not dischargeable in bankruptcy, for the majority of their working lives.

Yet even acknowledging the peculiar injustice that exists in American higher education, there is no avoiding the conclusion that 20-year-old adults obsessing and crying over their grades is not a sign of societal health. It's a tornado siren blasting 100 yards away from a trailer park.

As tempting as it is to ridicule the students for their inability to put their lives in mature perspective, it's more instructive to recognize that they are products of American families, institutions, and culture. The overwhelming prevalence of severe grade anxiety indicts a society that is failing to strengthen children into thoughtful and resilient adults. As Gore Vidal once quipped, "I've never met a boring six-year-old in America, and I've never met an interesting 16-year-old."

Even before reaching the age of six, children are under the constant influence of their families. Jonathan Haidt and Greg Lukianoff document in their important book The Coddling of the American Mind how "helicopter parenting" has weakened us all. Paranoid about safety, aggressively committed to their children's achievement, parents aspire to protect their sons and daughters from all potential hardship, pushing them into closely monitored extracurricular activities. They treat school work as an accountant treats an actuarial table. The wealthier the parents, the more likely they are to enter their children into the vigilant competition of meritocracy. Some families even send their kids to elite preschools, believing that failure to do so will keep them off the Ivy League university trajectory.

The self-esteem movement has ensured that children will not only aspire to the materialistic measurement of the "best," but believe that they are innately worthy of it. Hearing for their entire lives that they are flawless specimens of Da Vinci-esque brilliance and creativity leaves them unprepared for even the mildest form of criticism. One of the most common rebuttals to a low grade from a student is an indignant "I think I did a great job," spoken as if the teacher should receive a pupil's opinion about his own work as a Catholic priest receives a papal encyclical.

Since the move toward standardized testing as the ultimate metric for student and school success, educational institutions in both rich and poor neighborhoods have relegated the learning experience to high stakes exam preparation, indoctrinating children to believe that they can reduce the value of their intellectual pursuits to a number on a results sheet. The testing model of education complements the American adult's inevitable entrance into a consumer culture with a hierarchy of social status and purchasing power. The earning power of the Kardashians or Waltons allows them to accrue more political influence and cultural value than the typical family in a city without a "Real Housewives" franchise.

Too many conservatives insist on demoting education to nothing more than job training, encouraging the prevalent anti-intellectualism in the United States with suspicion, or outright derision, towards the "impractical" liberal arts. Liberals don't help matters by too often transforming the humanities into conduits of leftist social theory, and before that making elementary and secondary schools too bureaucratic. Formulaic lesson plans and mechanical approaches to pedagogy prevent teachers from developing fruitful bonds with their students, or adjusting their class agendas according to student need and interest.

The Atlantic has run informative but also demoralizing reports on how elementary schools in Finland allow children plenty of free time for play, while also encouraging them to indulge their curiosities in the classroom. In the United States, organic and unrestrained learning is a privilege for children whose parents pay the high prices of a Montessori school. An American kindergartener has an average of 30 minutes of homework per night.

One of my favorite assignments as a child, at the Lutheran elementary school I attended from first through eighth grade, was the book report. Our teacher would walk us to the library and tell us to pick any book, read it, and write a page on it. Depriving children of choice robs them of any joy they might associate with learning. I now teach students in perpetual panic over their grades, and more times than not, the only questions I receive after attempting to facilitate a discussion on a masterpiece of literature is "Will this be on the test?" or "How long does the paper have to be?"

Standards of evaluation are necessary. But I often try to inculcate in my students the knowledge that, in any walk of life and in comparison with the development of passions and the need to sharpen one's ability to look at a complex world, grades are not that important.

This is a tough sell -- pun intended -- in a country that has so thoroughly degraded its public vision of life to an endless quest for wealth and power. There is now a handy measurement of everything. Are you successful? Check your bank account. Are you important? Check your social media followers. Are you attractive? Check the likes on your latest profile picture.

Grades, with the weight of an institution behind them, act as a final judgment in the minds of too many students. They equate A's not only with immediate academic success, but also the chance of having a successful life. Anything less than the optimum might lead to unhappiness.

All lives have moments of failure, pain, and agony. Real adversity is not a "B" on a paper, but your best friend in a coffin, your child's frightening medical condition, your injury that leads to a permanent disability. Education at its best can bequeath what Albert Murray called "equipment for living."

Students who panic and cry over less than perfect grades demonstrate that America has not given them equipment that is helpful and durable. America, in that respect, is worthy of an "F."

David Masciotra is the author of four books, including Mellencamp: American Troubadour (University Press of Kentucky) and Barack Obama: Invisible Man (Eyewear Publishing).

[Sep 15, 2019] Wall Street Ignores Cyclical Jobs Growth Downturn As Employment Indicator Hits Great Recession Levels

Notable quotes:
"... Most of the ads for good jobs are fake. ..."
"... Instead of submitting a general application, as used to be the case in the past, and have the ability to work with the company to find the role that works best. HR has ruined a lot of good companies and their recruiting processes by going to rigid job descriptions instead of just hiring smart people and letting them work. ..."
Sep 15, 2019 | www.zerohedge.com

The Economic Cycle Research Institute's (ECRI) Lakshman Achuthan recently sat down with CNBC's Michael Santoli to discuss the jobs growth downturn. Keep in mind, this conversation was held on Wednesday, several days before Friday's disappointing jobs report.

Achuthan told Santoli there's a " very clear cyclical downturn in jobs growth, there's really no debating that, and it looks set to continue ."

Achuthan said January 2019 marked the cyclical peak in jobs growth, has been moving lower ever since, and the trend is far from over. Both nonfarm payrolls and the household survey year-over-year growth are in cyclical downturns, he said. While the economic narratives via the mainstream financial press continue to cheerlead that the consumer will lift all tides thanks to the supposedly strong jobs market, Achuthan believes the downturn in jobs growth will start to "undermine consumer confidence." And it's the loss in consumer confidence that could tilt the economy into recession.

He also said when examining cyclically sensitive sectors of the economy, there are already "questionable jobs numbers," such as a significant surge in the construction unemployment rate.

Achuthan said nonfarm payroll growth has plunged to a 17-month low, and the household survey is even weaker. He said the top nonfarm payroll line would be revised down by half a million jobs in the coming months, which would underline the weakness in employment.

Achuthan emphasized to Santoli that ECRI's recession call won't be "taken off the table. We've been talking about a growth rate cycle slowdown. We're slow-walking toward -- some recessionary window of vulnerability -- we're not there today -- but this piece of the puzzle [jobs growth downturn] is looking a bit wobbly. This is the main message that Wall Street is missing."

As Wall Street bids stocks to near-record highs on "trade optimism" and the belief that the consumer will save the day, in large part because of solid jobs growth. ECRI's Leading Employment Index, which correctly anticipated this downturn in jobs growth, is at its worst reading since the Great Recession .

And Wall Street's bet today is that the Fed can achieve a soft landing – as in 1995-96 – when it started the rate cut cycle the same month the inflation downturn was signaled by the U.S. Future Inflation Gauge (USFIG) turning lower.

However, this time around, the inflation downturn signal arrived in September 2018, the moment when the Fed should have started the cut cycle. With a ten-month lag in the cut cycle, belated rate cuts have always been associated with recession.

And now it should become increasingly clear to readers why President Trump has sounded the alarm about the need for 100bps rate cuts, quantitative easing, and emergency payroll tax cuts - it's because he's been briefed about the economic downturn that has already started.


GotAFriendInBen , 15 minutes ago link

Actually, MSM cheerleads rate cuts as the cure-all, instead of throwing shoes at Powell

Keyser , 41 minutes ago link

How do you continue to have jobs growth when the country is at full employment?

Typical ******** from C-NBC...

Alex Droog , 19 minutes ago link

The network that employs dotards like Jim Cramer to cheerlead the lemmings.

Build-It-Well , 1 hour ago link

Have we learned anything?

https://soundcloud.com/daniel-sullivan-505714723/little-saigon-report-170-have-we-learned-anything

Art_Vandelay , 1 hour ago link

I don't agree with him that the Fed can do anything to correct this, nor do they have an incentive to do so. The Fed is not on the consumer's side. They will appropriate funds to whoever they want to, just like 08, and give the middle finger to everyone else.

pitz , 1 hour ago link

Job quality is horrible, particularly for US citizen STEM workers. This has been the case since the downturn that began in the late 1990s. Trump needs to fully cancel the OPT program and almost eliminate the H-1B program. Major employers don't even bother considering US citizen STEM talent before they hire foreign nationals.

pump and dump , 1 hour ago link

Most of the ads for good jobs are fake.

pitz , 1 hour ago link

Yes, but they don't bother to come out and tell you its a fake ad. One of the tragedies of the online job application process is that it forces a person, with little to no knowledge of a company and its internals, to pick, out of potentially hundreds of roles, which one would be best for them.

Instead of submitting a general application, as used to be the case in the past, and have the ability to work with the company to find the role that works best. HR has ruined a lot of good companies and their recruiting processes by going to rigid job descriptions instead of just hiring smart people and letting them work.

ZD1 , 1 hour ago link

Congress first established the H-1B program with the The Immigration Act of 1990. It was supposed to be temporary.

Congress needs to abolish it.

Future Jim , 2 hours ago link

This seems to contradict the labor participation rate.

https://fred.stlouisfed.org/series/CIVPART

J S Bach , 2 hours ago link

"Wall Street Ignores Cyclical Slave Growth Downturn As Enslavement Indicator Hits Great Recession Levels"

Ahhh... what truth a few seconds of editing can convoke.

The EveryThing Bubble , 2 hours ago link

It's all rigged folks

don't believe anything you read

[Sep 14, 2019] Is it better to be poor in a rich country or rich in a poor country?

Sep 14, 2019 | economistsview.typepad.com

anne , September 13, 2019 at 06:31 PM

https://news.cgtn.com/news/2019-09-11/Should-we-worry-about-income-gaps-within-or-between-countries--JTDcnKWvII/index.html

September 10, 2019

Should We Worry About Income Gaps Within or Between Countries?
The rise of populist nationalism throughout the West has been fueled partly by a clash between the objectives of equity in rich countries and higher living standards in poor countries. Yet advanced-economy policies that emphasize domestic equity need not be harmful to the global poor, even in international trade.
By DANI RODRIK

At the beginning of classes every autumn, I tease my students with the following question: Is it better to be poor in a rich country or rich in a poor country? The question typically invites considerable and inconclusive debate. But we can devise a more structured and limited version of the question, for which there is a definitive answer.

Let's narrow the focus to incomes and assume that people care only about their own consumption levels (disregarding inequality and other social conditions). "Rich" and "poor" are those in the top and bottom 5 percent of the income distribution, respectively. In a typical rich country, the poorest 5 percent of the population receive around 1 percent of the national income. Data are a lot sparser for poor countries, but it would not be too much off the mark to assume that the richest 5 percent there receive 25 percent of the national income.

Similarly, let's assume that rich and poor countries are those in the top and bottom 5 percent of all countries, ranked by per capita income. In a typical poor country (such as Liberia or Niger), that is around 1,000 U.S. dollars, compared to 65,000 U.S. dollars in a typical rich country (say, Switzerland or Norway). (These incomes are adjusted for cost-of-living, or purchasing-power, differentials so that they can be directly compared.)

Now, we can calculate that a rich person in a poor country has an income of 5,000 (1,000 x 0.25 x 20) U.S. dollars while a poor person in a rich country earns 13,000 (65,000 x 0.01 x 20) U.S. dollars. Measured by material living standards, a poor person in a rich country is more than twice as well off as a rich person in a poor country.

This result surprises my students, most of whom expect the reverse to be true. When they think of wealthy individuals in poor countries, they imagine tycoons living in mansions with a retinue of servants and a fleet of expensive cars. But while such individuals certainly exist, a representative of the top 5 percent in very poor countries is likely to be a mid-level government bureaucrat.

The larger point of this comparison is to underscore the importance of income differences across countries, relative to inequalities within countries.

At the dawn of modern economic growth, before the Industrial Revolution, global inequality derived almost exclusively from inequality within countries. Income gaps between Europe and poorer parts of the world were small. But as the West developed in the 19th century, world economy underwent a "great divergence" between the industrial core and the primary-goods-producing periphery. During much of the postwar period, income gaps between rich and poor countries accounted for the greater part of global inequality.

From the late 1980s onward, two trends began to alter this picture. First, led by China, many parts of the lagging regions began to experience substantially faster economic growth than the world's rich countries. For the first time in history, the typical developing-country resident was getting richer at a faster pace than his or her counterparts in Europe and North America.

Second, inequalities began to increase in many advanced economies, especially those with less-regulated labor markets and weak social protections. The rise in inequality in the United States has been so sharp that it is no longer clear that the standard of living of the American "poor" is higher than that of the "rich" in the poorest countries (with rich and poor defined as above).

These two trends went in offsetting directions in terms of overall global inequality – one decreased it while the other increased it. But they have both raised the share of within-country inequality in the total, reversing an uninterrupted trend observed since the 19th century.

Given patchy data, we cannot be certain about the respective shares of within- and between-country inequality in today's world economy. But in an unpublished paper based on data from the World Inequality Database, Lucas Chancel of the Paris School of Economics estimates that as much as three-quarters of current global inequality may be due to within-country inequality. Historical estimates by two other French economists, François Bourguignon and Christian Morrison, suggest that within-country inequality has not loomed so large since the late 19th century.

These estimates, if correct, suggest that the world economy has crossed an important threshold, requiring us to revisit policy priorities. For a long time, economists like me have been telling the world that the most effective way to reduce global income disparities would be to accelerate economic growth in low-income countries. Cosmopolitans in rich countries – typically the wealthy and skilled professionals – could claim to hold the high moral ground when they downplayed the concerns of those complaining about domestic inequality.

But the rise of populist nationalism throughout the West has been fueled partly by the tension between the objectives of equity in rich countries and higher living standards in poor countries. Advanced economies' increased trade with low-income countries has contributed to domestic wage inequality. And probably the single best way to raise incomes in the rest of the world would be to allow a massive influx of workers from poor countries into rich countries' labor markets. That would not be good news for less educated, lower-paid rich-country workers.

Yet advanced-economy policies that emphasize domestic equity need not be harmful to the global poor, even in international trade. Economic policies that lift incomes at the bottom of the labor market and diminish economic insecurity are good both for domestic equity and for the maintenance of a healthy world economy that provides poor economies a chance to develop.


Dani Rodrik is Professor of International Political Economy at Harvard University's John F. Kennedy School of Government.

Paine -> anne... , September 14, 2019 at 07:22 AM
Yes yes yes


Trade and income distribution are related but the relationship can be determinative lay shaped by domestic institutions and country wide foreign trade policy

We need institutions run by and for common workng people

And foreign trade policy to shape impact patterns on domestic households in a pro common working people pattern

Too many well meaning Cosmo humanists assume the corporate message to be binding

A r
Trade off between foreign poor and domestic wage earners
Was part of global progress

Nope
Not necessarily so

Dani has several popularly written papers on tis point

Let's hope Anne can link to some of hem for us

likbez -> anne... , September 14, 2019 at 06:38 PM
Dani Rodrik is wrong. The idea that poor in the USA live better then top 5% in the most poor counties is a kind of persistent neoliberal myth that needs to dispelled.

1. Purchase party essentially means that in poor countries dollar is overvalued twice or more. Which means that $5K in poorest countries is close to $10 or even $15K in the USA and other Western countries.

2. Access to education and medical care is incomparable. In the USA most poor live without medical insurance. That put them in severe disadvantage with top 5% of a poor country.

3. Top 5% in poor countries typically own very comfortable apartments, in many cases far superior to what is available in the USA even for middle income families. Cost of the rent on two bedroom apartment in the large city in poor countries is typically 5-10 times less then in the USA. Taking into account very low quality of apartment complexes in the USA, the apartments in poor countries for top 5% might well belong to luxury apartment class in the USA. I know for sure that in the capital of Tajikistan (2017 GDP per Capita: $777) they are better.

The low 5% in the USA actually live in the third world country with considerable level of segregation from the rest of population as for apartments in which they live (look housing of the low paid retail and WalMart employees for actual data; their standard of living is just horrible, especially for single mothers with children)

3. Level of education. Top 5% in poor country are mostly university educated or better. Low 5% in the USA and other Western countries usually are functionally illiterate.

https://brandongaille.com/us-literacy-rate-and-illiteracy-statistics/

1. 32 million adults can not read in the United States equal to 14% of the population.
2. 21% of US adults read below the 5th grade level.
3. 19% of high school graduates can not read.
4. 85% of juveniles who interact with the juvenile court system are considered functionally illiterate.
5. 70% of inmates in America's prisons can not read above the fourth grade level.

4. Military industrial complex and Wall Street had taken ordinary Americans for a ride much like in the UK during the days of British Empire.

Which for one thing means that due to lack of affordable public transportation you need to own a car outside major metropolises. Which drops you standard of living. You will be fleeced three times: first by used car dealerships, then by insurance companies (low credit rating and high risk of default means high premium) and then repair shops which in some cases are really criminal enterprises exploiting the most poor and vulnerable parts of the population. Parts who has no access to quality cars.

Top 5% in poor countries has access to new small and midsize Japanese models (like Corolla, Nissan Juke, etc )

Also Rodrik method of calculation of income of top 5% of population is highly questionable. He never tried to verify his calculation with actual statistic of distribution of incomes in say top 10 poorest countries in the world (the list includes three the xUSSR "stans"; for them top 5% earns probably at least $20K a year, if not more )

IMHO for poor countries the income of the top 5% is probably two to four times higher then Rodrick estimate due to extreme values of GINI coefficient for such countries. Top 5% on such countries are mostly represented by people working for foreign companies (compradors), high level professionals and high level government employees. For the latter the salary is just the top of the iceberg of the real income.

[Sep 13, 2019] Clowns, AI and layoffs

Sep 13, 2019 | www.nakedcapitalism.com

Bugs Bunny , September 13, 2019 at 4:25 pm

Clowns should be increasingly used in redundancy (layoff, firing) meetings until it becomes the norm and employers start to compete with each other to offer the best clown redundancy experience and promote it as a benefit.

It would also create clown jobs, which would probably require more clown schools, meaning that the tuition prices would go through the roof and young people dreaming of becoming redundancy clowns would either have to come from wealth or take out massive clown loans to fund their education for clown universities and grad schools. Shareholders can only take so much top line costs and Wall Street pressure would force corporations to improve return on investment and reduce redundancy clown labor expenses. Sadly, redundancy clowns would find themselves training their own replacements – HB1 clowns from "low cost" countries. Employers would respond to quality criticisms of the HB1 clown experience by publishing survey results showing very similar almost ex-employee satisfaction with the new clowns.

Eventually, of course, redundancy clowns will be replaced by AI and robots. It's just the future and we will need to think about how to adapt to it today by putting in place a UBI for the inevitable redundant redundancy clowns.

[Sep 12, 2019] Amazing; I had no idea Betsy Voss advocate of for-profit charter schools (privatizing education) and The New Curriculum and Eric Prince (advocate for privatizing war) are brother and sister. Blood will tell.

Sep 12, 2019 | thenewkremlinstooge.wordpress.com

Mark Chapman September 3, 2019 at 12:23 pm

Amazing; I had no idea Betsy Voss – advocate of for-profit charter schools (privatizing education) and The New Curriculum – and Eric Prince (advocate for privatizing war) are brother and sister. Blood will tell.

Profiteering is naked and in the open now in the west, and public systems increasingly favour the wealthy – if you want better, you should be ready to pay for it. I guess that's what all those tax cuts were about – shifting a burden off of the wealthy, so that now public services are pay-as-you-go because the government can't afford to provide them for everyone. However, tax cuts also favoured the wealthy – gee, it almost makes you think the class system is coming back, dunnit?

Jen September 3, 2019 at 2:58 pm
I recall Jeremy Scahill mentioning in his book on Blackwater (before it started changing its name faster than you can change your socks) that Erik Prince was related to Betsy deVos. This was long before Scahill turned his own name and reputation into mud when he walked out of a London conference back in 2012 or 2013 because the Syrian nun Agnes Mariam de la Croix, who was known to support President Assad at the time, was a guest speaker at the conference.

[Sep 10, 2019] The Siren Song of Economic Opportunity

Notable quotes:
"... When the issues of poverty and inequality came up, a common neoliberal dodge was to invoke the Horatio Alger myth -- that in America, with hard work one can, or should be able to, raise oneself up by one' bootstraps. This switches the question from security ..."
"... As it happens, mobility has declined over the long term in the United States, but that aside, it's a two-way street. The escalator of life runs in both directions. Moreover, it's a separate issue from that of poverty or inequality. One can have more mobility and the same or worse poverty or inequality. The rising tide goes out as well as in. ..."
"... The neoliberal remedy for poverty and inequality is commonly held to be education, because workers lack the requisite skills to earn a living wage. It's kind of their fault. All that's needed is some reasonable public expenditure. No deeper structural factors are at issue. This mindset is contradicted now in two ways. ..."
Sep 10, 2019 | portside.org

Originally from: The Sunset of Neoliberalism

When the issues of poverty and inequality came up, a common neoliberal dodge was to invoke the Horatio Alger myth -- that in America, with hard work one can, or should be able to, raise oneself up by one' bootstraps. This switches the question from security made possible by the public sector to an individual responsibility for economic mobility.

As it happens, mobility has declined over the long term in the United States, but that aside, it's a two-way street. The escalator of life runs in both directions. Moreover, it's a separate issue from that of poverty or inequality. One can have more mobility and the same or worse poverty or inequality. The rising tide goes out as well as in.

The neoliberal remedy for poverty and inequality is commonly held to be education, because workers lack the requisite skills to earn a living wage. It's kind of their fault. All that's needed is some reasonable public expenditure. No deeper structural factors are at issue. This mindset is contradicted now in two ways.

First, the idea of education as an essential, missing ingredient is being supplanted by the idea that what's at issue is power , both political and economic . The wealthy control streams of income and institutions of credentialization that could be rerouted, via taxation, to finance education ("free college") that has an equalizing effect on wealth and enhances economic security.. .

[Sep 09, 2019] What's the True Unemployment Rate in the US? by Jack Rasmus

Highly recommended!
Notable quotes:
"... The real unemployment rate is probably somewhere between 10%-12%. ..."
"... The U-6 also includes what the labor dept. calls involuntary part time employed. It should include the voluntary part time as well, but doesn't (See, they're not actively looking for work even if unemployed). ..."
"... But even the involuntary part time is itself under-estimated. I believe the Labor Dept. counts only those involuntarily part time unemployed whose part time job is their primary job. It doesn't count those who have second and third involuntary part time jobs. That would raise the U-6 unemployment rate significantly. The labor Dept's estimate of the 'discouraged' and 'missing labor force' is grossly underestimated. ..."
"... The labor dept. also misses the 1-2 million workers who went on social security disability (SSDI) after 2008 because it provides better pay, for longer, than does unemployment insurance. That number rose dramatically after 2008 and hasn't come down much (although the government and courts are going after them). ..."
"... The way the government calculates unemployment is by means of 60,000 monthly household surveys but that phone survey method misses a lot of workers who are undocumented and others working in the underground economy in the inner cities (about 10-12% of the economy according to most economists and therefore potentially 10-12% of the reported labor force in size as well). ..."
"... The SSDI, undocumented, underground, underestimation of part timers, etc. are what I call the 'hidden unemployed'. And that brings the unemployed well above the 3.7%. ..."
Sep 09, 2019 | www.counterpunch.org

The real unemployment rate is probably somewhere between 10%-12%. Here's why: the 3.7% is the U-3 rate, per the labor dept. But that's the rate only for full time employed. What the labor dept. calls the U-6 includes what it calls discouraged workers (those who haven't looked for work in the past 4 weeks). Then there's what's called the 'missing labor force'–i.e. those who haven't looked in the past year. They're not calculated in the 3.7% U-3 unemployment rate number either. Why? Because you have to be 'out of work and actively looking for work' to be counted as unemployed and therefore part of the 3.7% rate.

The U-6 also includes what the labor dept. calls involuntary part time employed. It should include the voluntary part time as well, but doesn't (See, they're not actively looking for work even if unemployed).

But even the involuntary part time is itself under-estimated. I believe the Labor Dept. counts only those involuntarily part time unemployed whose part time job is their primary job. It doesn't count those who have second and third involuntary part time jobs. That would raise the U-6 unemployment rate significantly. The labor Dept's estimate of the 'discouraged' and 'missing labor force' is grossly underestimated.

The labor dept. also misses the 1-2 million workers who went on social security disability (SSDI) after 2008 because it provides better pay, for longer, than does unemployment insurance. That number rose dramatically after 2008 and hasn't come down much (although the government and courts are going after them).

The way the government calculates unemployment is by means of 60,000 monthly household surveys but that phone survey method misses a lot of workers who are undocumented and others working in the underground economy in the inner cities (about 10-12% of the economy according to most economists and therefore potentially 10-12% of the reported labor force in size as well). The labor dept. just makes assumptions about that number (conservatively, I may add) and plugs in a number to be added to the unemployment totals. But it has no real idea of how many undocumented or underground economy workers are actually employed or unemployed since these workers do not participate in the labor dept. phone surveys, and who can blame them.

The SSDI, undocumented, underground, underestimation of part timers, etc. are what I call the 'hidden unemployed'. And that brings the unemployed well above the 3.7%.

Finally, there's the corroborating evidence about what's called the labor force participation rate. It has declined by roughly 5% since 2007. That's 6 to 9 million workers who should have entered the labor force but haven't. The labor force should be that much larger, but it isn't. Where have they gone? Did they just not enter the labor force? If not, they're likely a majority unemployed, or in the underground economy, or belong to the labor dept's 'missing labor force' which should be much greater than reported. The government has no adequate explanation why the participation rate has declined so dramatically. Or where have the workers gone. If they had entered the labor force they would have been counted. And their 6 to 9 million would result in an increase in the total labor force number and therefore raise the unemployment rate.

All these reasons–-i.e. only counting full timers in the official 3.7%; under-estimating the size of the part time workforce; under-estimating the size of the discouraged and so-called 'missing labor force'; using methodologies that don't capture the undocumented and underground unemployed accurately; not counting part of the SSI increase as unemployed; and reducing the total labor force because of the declining labor force participation-–together means the true unemployment rate is definitely over 10% and likely closer to 12%. And even that's a conservative estimate perhaps." Join the debate on Facebook More articles by: Jack Rasmus

Jack Rasmus is author of the recently published book, 'Central Bankers at the End of Their Ropes: Monetary Policy and the Coming Depression', Clarity Press, August 2017. He blogs at jackrasmus.com and his twitter handle is @drjackrasmus. His website is http://kyklosproductions.com .

[Sep 08, 2019] Academic freedom sometimes takes very perverted forms in a neoliberal university

Sep 08, 2019 | www.unz.com

Miro23 , says: September 7, 2019 at 9:28 am GMT

Speech is controlled by political correctness. Someone behind the scenes decides what is acceptable and what is not, what is desirable or not, and even what is permissible. You make one 'mistake' and you are out; from the teaching positions at the universities, or from the media outlets.

And what is permissible is becoming truly weird. These are comments on an article over at http://www.thecollegefix.com "Poll: 73 percent of Republican students have withheld political views in class for fear their grades would suffer".

https://www.thecollegefix.com/poll-73-percent-of-republican-students-have-withheld-political-views-in-class-for-fear-their-grades-would-suffer/

[MORE]

Blackbeagle Mark

I'm ABD (all but dissertation) in Econometrics because my adviser was a Marxist nutcase from the London School of Economics. I couldn't fight the communists forever; not when they held all the cards.

Reply: Medina-Merino

I left my PhD program in Anthropology when on a "field trip" , my advisor and his idiotic tie-dyed moron of a wife (former student of his) crawled into my tent on the first night of a 2 week research project in black leather bondage harnesses and informed me it was time for me to join them in a "night of pure pleasure".

Fast forward I got up, got into my car, drove through the night back to campus, parked outside of the Dean's office, stormed in with wide-blood-shot-eyes when he arrived in his 700-Series turbo-charged Special Edition BMW and told him I wanted to file a complaint against Professor "Bondo" and when he (Dean Bozo) did not respond to my request in over a week, I withdrew from my program (ABD also) before the "Drop Deadline" so I could get full refund of my hard-earned TENS OF THOUSANDS of tuition dollars and used the money to secure an attorney (who I later learned was on-the-take for the University's own legal counsel office of "Equity & Fairness") until I ran out of money and then left town to take a position in Scotland on a research team studying Celtic migrations to the Northern Coast of the Iberian Peninsula, known for centuries unofficially as the "Celtic Coast". I loved my work and worked with some amazing and HONEST and RESPECTFUL colleagues.

I learned a big lesson from this EFFIN nightmare be verrrrrrrrrrrrrrry careful of whose hands you find your career in there are a lot of filthy, abusive, corrupt "faculty" and even more dishonest and disingenuous and despicable "administrators" in the contemporary academy and many have brass name-plates on their doors and hold do-nothing-but-damage-to-the-lives-of those who are often powerless against their callous and deliberate abuses.

Even today, on my sleepless nights I can still hear Mr. Chips rustling in his grave

I went on to hold positions of academic renown in Europe and Latin America and eventually returned to the US when I knew I would be able to secure adjunct positions in the US and Canada and Puerto Rico to support myself and my family, whose lives I was able to maintain in a stable trajectory throughout this horror!

Revenge is sweet however today when I receive requests from my former "institution of higher learning" I respond in the SASE
"NEVER WILL I EVER GIVE YOU ONE CENT FOR NOT HAVING PROTECTED ME FROM ABUSE AT THE HANDS OF DR. "BONDO" YEARS AGO!" Even today, he is part of campus lore and is whispered about in hushed tones.

What happened to the "prof" he died of very painful brain cancer (poetic justice) and his idiot wife went full-tilt into drugs and is sitting in a pool of her own pee in a very dismal geriatric ward. And the "Dean"? He is likewise awaiting his last days in his luxury condo in Santa Barbara, CA surrounded by like-minded Lutheran do-gooders holding prayer circles and burning incense and rubbing crystals for each of their pathetic selves

[Sep 07, 2019] conservancy.umn.edu

Sep 07, 2019 | conservancy.umn.edu

Knuth: Well, certainly it seems the way things are going. You take any particular subject that you are interested in and you try to see if somebody with an American high school education has learned it, and you will be appalled. You know, Jesse Jackson thinks that students know nothing about political science, and I am sure the chemists think that students don't know chemistry, and so on. But somehow they get it when they have to later. But I would say certainly the students now have been getting more of a superficial idea of mathematics than they used to. We have to do remedial stuff at Stanford that we didn't have to do thirty years ago.

Frana: Gio [Wiederhold] said much the same thing to me.

Knuth: The most scandalous thing was that Stanford's course in linear algebra could not get to eigenvalues because the students didn't know about complex numbers. Now every course at Stanford that takes linear algebra as a prerequisite does so because they want the students to know about eigenvalues. But here at Stanford, with one of the highest admission standards of any university, our students don't know complex numbers. So we have to teach them that when they get to college. Yes, this is definitely a breakdown.

Frana: Was your mathematics training in high school particularly good, or was it that you spent a lot of time actually doing problems?

Knuth: No, my mathematics training in high school was not good. My teachers could not answer my questions and so I decided I'd go into physics. I mean, I had played with mathematics in high school. I did a lot of work drawing graphs and plotting points and I used pi as the radix of a number system, and explored what the world would be like if you wanted to do logarithms and you had a number system based on pi. And I had played with stuff like that. But my teachers couldn't answer questions that I had.

... ... ... Frana: Do you have an answer? Are American students different today? In one of your interviews you discuss the problem of creativity versus gross absorption of knowledge.

Knuth: Well, that is part of it. Today we have mostly a sound byte culture, this lack of attention span and trying to learn how to pass exams. Frana: Yes,

[Sep 06, 2019] Understanding Literacy Numeracy

Level 4/5 is the ability to read complex information and glean information from it, or in numeracy, the ability to do algebra and above. You will note that only about 1 in 10 function at this level. The vast majority function at about 6th to 8th grade competency.
Sep 06, 2019 | www.cdc.gov

this is from Understanding Literacy & Numeracy

[Sep 04, 2019] Starving Seniors How America Fails To Feed Its Aging naked capitalism

Sep 04, 2019 | www.nakedcapitalism.com

https://eus.rubiconproject.com/usync.html

https://acdn.adnxs.com/ib/static/usersync/v3/async_usersync.html

https://c.deployads.com/sync?f=html&s=2343&u=https%3A%2F%2Fwww.nakedcapitalism.com%2F2019%2F09%2Fstarving-seniors-how-america-fails-to-feed-its-aging.html <img src="http://b.scorecardresearch.com/p?c1=2&c2=16807273&cv=2.0&cj=1" /> By Laura Ungar, who health issues out of Kaiser Health News' St. Louis office, and Trudy Lieberman, a journalist for more than 45 years, and a past president of the Association of Health Care Journalists. Originally published by Kaiser Health News .

MEMPHIS, Tenn. -- Army veteran Eugene Milligan is 75 years old and blind. He uses a wheelchair since losing half his right leg to diabetes and gets dialysis for kidney failure.

And he has struggled to get enough to eat.

Earlier this year, he ended up in the hospital after burning himself while boiling water for oatmeal. The long stay caused the Memphis vet to fall off a charity's rolls for home-delivered Meals on Wheels , so he had to rely on others, such as his son, a generous off-duty nurse and a local church to bring him food.

"Many times, I've felt like I was starving," he said. "There's neighbors that need food too. There's people at dialysis that need food. There's hunger everywhere."

Indeed, millions of seniors across the country quietly go hungry as the safety net designed to catch them frays. Nearly 8% of Americans 60 and older were "food insecure" in 2017, according to a recent study released by the anti-hunger group Feeding America. That's 5.5 million seniors who don't have consistent access to enough food for a healthy life, a number that has more than doubled since 2001 and is only expected to grow as America grays.

While the plight of hungry children elicits support and can be tackled in schools, the plight of hungry older Americans is shrouded by isolation and a generation's pride. The problem is most acute in parts of the South and Southwest. Louisiana has the highest rate among states, with 12% of seniors facing food insecurity. Memphis fares worst among major metropolitan areas, with 17% of seniors like Milligan unsure of their next meal.

And government relief falls short. One of the main federal programs helping seniors is starved for money. The Older Americans Act -- passed more than half a century ago as part of President Lyndon Johnson's Great Society reforms -- was amended in 1972 to provide for home-delivered and group meals, along with other services, for anyone 60 and older. But its funding has lagged far behind senior population growth, as well as economic inflation.

The biggest chunk of the act's budget, nutrition services, dropped by 8% over the past 18 years when adjusted for inflation, an AARP report found in February. Home-delivered and group meals have decreased by nearly 21 million since 2005. Only a fraction of those facing food insecurity get any meal services under the act; a U.S. Government Accountability Office report examining 2013 data found 83% got none.

With the act set to expire Sept. 30, Congress is now considering its reauthorization and how much to spend going forward.

Meanwhile, according to the U.S. Department of Agriculture, only 45% of eligible adults 60 and older have signed up for another source of federal aid: SNAP, the food stamp program for America's poorest. Those who don't are typically either unaware they could qualify, believe their benefits would be tiny or can no longer get to a grocery store to use them.

Even fewer seniors may have SNAP in the future. More than 13% of SNAP households with elderly members would lose benefits under a recent Trump administration proposal.

For now, millions of seniors -- especially low-income ones -- go without. Across the nation, waits are common to receive home-delivered meals from a crucial provider, Meals on Wheels, a network of 5,000 community-based programs. In Memphis, for example, the wait to get on the Meals on Wheels schedule is more than a year long.

"It's really sad because a meal is not an expensive thing," said Sally Jones Heinz, president and CEO of the Metropolitan Inter-Faith Association , which provides home-delivered meals in Memphis. "This shouldn't be the way things are in 2019."

Since malnutrition exacerbates diseases and prevents healing, seniors without steady, nutritious food can wind up in hospitals, which drives up Medicare and Medicaid costs, hitting taxpayers with an even bigger bill . Sometimes seniors relapse quickly after discharge -- or worse.

Widower Robert Mukes, 71, starved to death on a cold December day in 2016, alone in his Cincinnati apartment.

The Hamilton County Coroner listed the primary cause of death as "starvation of unknown etiology" and noted "possible hypothermia," pointing out that his apartment had no electricity or running water. Death records show the 5-foot-7-inch man weighed just 100.5 pounds.

A Clear Need

On a hot May morning in Memphis, seniors trickled into a food bank at the Riverside Missionary Baptist Church, 3 miles from the opulent tourist mecca of Graceland. They picked up boxes packed with canned goods, rice, vegetables and meat.

Marion Thomas, 63, placed her box in the trunk of a friend's car. She lives with chronic back pain and high blood pressure and started coming to the pantry three years ago. She's disabled, relies on Social Security and gets $42 a month from SNAP based on her income, household size and other factors. That's much less than the average $125-a-month benefit for households with seniors, but more than the $16 minimum that one in five such households get. Still, Thomas said, "I can't buy very much."

A day later, the Mid-South Food Bank brought a "mobile pantry" to Latham Terrace, a senior housing complex, where a long line of people waited. Some inched forward in wheelchairs; others leaned on canes. One by one, they collected their allotments.

The need is just as real elsewhere. In Dallas, Texas, 69-year-old China Anderson squirrels away milk, cookies and other parts of her home-delivered lunches for dinner because she can no longer stand and cook due to scoliosis and eight deteriorating vertebral discs.

As seniors ration food, programs ration services.

Although more than a third of the Meals on Wheels money comes from the Older Americans Act, even with additional public and private dollars, funds are still so limited that some programs have no choice but to triage people using score sheets that assign points based on who needs food the most. Seniors coming from the hospital and those without family usually top waiting lists.

More than 1,000 were waiting on the Memphis area's list recently. And in Dallas, $4.1 million in donations wiped out a 1,000-person waiting list in December, but within months it had crept back up to 100.

Nationally, "there are tens of thousands of seniors who are waiting," said Erika Kelly , chief membership and advocacy officer for Meals on Wheels America. "While they're waiting, their health deteriorates and, in some cases, we know seniors have died."

Edwin Walker, a deputy assistant secretary for the federal Administration on Aging, acknowledged waits are a long-standing problem, but said 2.4 million people a year benefit from the Older Americans Act's group or home-delivered meals, allowing them to stay independent and healthy.

Seniors get human connection, as well as food, from these services. Aner Lee Murphy, a 102-year-old Meals on Wheels client in Memphis, counts on the visits with volunteers Libby and Bob Anderson almost as much as the food. She calls them "my children," hugging them close and offering a prayer each time they leave.

But others miss out on such physical and psychological nourishment. A devastating phone call brought that home for Kim Daugherty, executive director of the Aging Commission of the Mid-South , which connects seniors to service providers in the region. The woman on the line told Daugherty she'd been on the waiting list for more than a year.

"Ma'am, there are several hundred people ahead of you," Daugherty reluctantly explained.

"I just need you all to remember," came the caller's haunting reply, "I'm hungry and I need food."

A Slow Killer

James Ziliak , a poverty researcher at the University of Kentucky who worked on the Feeding America study, said food insecurity shot up with the Great Recession, starting in the late 2000s, and peaked in 2014. He said it shows no signs of dropping to pre-recession levels.

While older adults of all income levels can face difficulty accessing and preparing healthy food, rates are highest among seniors in poverty. They are also high among minorities. More than 17% of black seniors and 16% of Hispanic seniors are food insecure, compared with fewer than 7% of white seniors.

A host of issues combine to set those seniors on a downward spiral, said registered dietitian Lauri Wright , who chairs the Department of Nutrition and Dietetics at the University of North Florida. Going to the grocery store gets a lot harder if they can't drive. Expensive medications leave less money for food. Chronic physical and mental health problems sap stamina and make it tough to cook. Inch by inch, hungry seniors decline.

And, even if it rarely kills directly, hunger can complicate illness and kill slowly.

Malnutrition blunts immunity, which already tends to weaken as people age. Once they start losing weight, they're more likely to grow frail and are more likely to die within a year, said Dr. John Morley, director of the division of geriatric medicine at Saint Louis University.

Seniors just out of the hospital are particularly vulnerable. Many wind up getting readmitted, pushing up taxpayers' costs for Medicare and Medicaid. A recent analysis by the Bipartisan Policy Center found that Medicare could save $1.57 for every dollar spent on home-delivered meals for chronically ill seniors after a hospitalization.

Most hospitals don't refer senior outpatients to Meals on Wheels, and advocates say too few insurance companies get involved in making sure seniors have enough to eat to keep them healthy.

When Milligan, the Memphis veteran, burned himself with boiling water last winter and had to be hospitalized for 65 days, he fell off the Metropolitan Inter-Faith Association's radar. The meals he'd been getting for about a decade stopped.

Heinz, Metropolitan's CEO, said the association is usually able to start and stop meals for short hospital stays. But, Heinz said, the association didn't hear from Milligan and kept trying to deliver meals for a time while he was in the hospital, then notified the Aging Commission of the Mid-South he wasn't home. As is standard procedure, Metropolitan officials said, a staff member from the commission made three attempts to contact him and left a card at the blind man's home.

But nothing happened when he got out of the hospital this spring. In mid-May, a nurse referred him for meal delivery. Still, he didn't get meals because he faced a waitlist already more than 1,000 names long.

After questions from Kaiser Health News, Heinz looked into Milligan's case and realized that, as a former client, Milligan could get back on the delivery schedule faster.

But even then the process still has hurdles: The aging commission would need to conduct a new home assessment for meals to resume. That has yet to happen because, amid the wait, Milligan's health deteriorated.

A Murky Future

As the Older Americans Act awaits reauthorization this fall, many senior advocates worry about its funding.

In June, the U.S. House passed a $93 million increase to the Older Americans Act's nutrition programs, raising total funding by about 10% to $1 billion in the next fiscal year. In inflation-adjusted dollars, that's still less than in 2009. And it still has to pass in the Republican-controlled Senate, where the proposed increase faces long odds.

U.S. Rep. Suzanne Bonamici, an Oregon Democrat who chairs the Civil Rights and Human Services Subcommittee, expects the panel to tackle legislation for reauthorization of the act soon after members return from the August recess. She's now working with colleagues "to craft a strong, bipartisan update," she said, that increases investments in nutrition programs as well as other services.

"I'm confident the House will soon pass a robust bill," she said, "and I am hopeful that the Senate will also move quickly so we can better meet the needs of our seniors."

In the meantime, "the need for home-delivered meals keeps increasing every year," said Lorena Fernandez, who runs a meal delivery program in Yakima, Wash. Activists are pressing state and local governments to ensure seniors don't starve, with mixed results. In Louisiana, for example, anti-hunger advocates stood on the state Capitol steps in May and unsuccessfully called on the state to invest $1 million to buy food from Louisiana farmers to distribute to hungry residents. Elsewhere, senior activists across the nation have participated each March in "March for Meals" events such as walks, fundraisers and rallies designed to focus attention on the problem.

Private fundraising hasn't been easy everywhere, especially rural communities without much wealth. Philanthropy has instead tended to flow to hungry kids, who outnumber hungry seniors more than 2-to-1, according to Feeding America.

"Ten years ago, organizations had a goal of ending child hunger and a lot of innovation and resources went into what could be done," said Jeremy Everett, executive director of Baylor University's Texas Hunger Initiative. "The same thing has not happened in the senior adult population." And that has left people struggling for enough food to eat.

As for Milligan, he didn't get back on Meals on Wheels before suffering complications related to his dialysis in June. He ended up back in the hospital. Ironically, it was there that he finally had a steady, if temporary, source of food.

It's impossible to know if his time without steady, nutritious food made a difference. What is almost certain is that feeding him at home would have been far cheaper.

[Sep 02, 2019] Discrimination thru stupid job descriptions is catching up to the economy

Jan 11, 2017 | www.nakedcapitalism.com
cocomaan, January 10, 2017 at 4:04 pm

Coulnd't get the JOLTS, November 2016 links to work, but the skills gap is wild.

At an institution of higher ed I'm familiar with, both faculty and administrative positions continue to be unfilled. There are very few candidates even for entry level positions. Failed searches are now the norm. It's feast or famine: either people are perfect for the job and have many options, or have no related experience at all.

I wonder if the labor force participation rate is starting to catch up with the job market. That is, there are a lot of healthy adults who have dropped out of the workforce who would be the people you'd want in those positions.

Or that the job market is not nearly as liquid as they'd have you believe, and people can't relocate from where they are because of adult children who live with them, or things of that nature. All kinds of weird things now in the job market. I know someone who commutes a significant distance to work that has to look for another job because their workplace's health care plan only covers a geographic area close to that job.

alex morfesis , January 10, 2017 at 4:59 pm

Discrimination thru stupid job descriptions is catching up to the economy paying $12 per hour five years experience required nonsense job descriptions designed to help the accredited and credentialed have a leg up

There seem to be three types of employment categories

IMUO it is not a skills gap it is the demanding of irrelevant capacities and experience that almost always have very little to do with the actual tasks required

[Sep 02, 2019] Neoliberals often argue that people should be glad to lose employment at 50 so that people from other countries can have higher incomes

Notable quotes:
"... Neoliberals often argue that people should be glad to lose employment at 50 so that people from other countries can have higher incomes, and leftists often agree because hey "free movement" and because after all the professional class jobs aren't at risk ..."
"... "I think Trump is afraid the imperial global order presided by the US is about to crash and thinks he will be able to steer the country into a soft landing by accepting that other world powers have interests, by disengaging from costly and humiliating military interventions, by re-negotiating trade deals, and by stopping the mass immigration of poor people." ..."
"... No one has literally argued that people should be glad to lose employment: that part was hyperbole. But the basic argument is often made quite seriously. See e.g. outsource Brad DeLong . ..."
"... To the guy who asked- poor white people keep voting Republican even though it screws them because they genuinely believe that the country is best off when it encourages a culture of "by the bootstraps" self improvement, hard work, and personal responsibility. They view taxing people in order to give the money to the supposedly less fortunate as the anti thesis of this, because it gives people an easy out that let's them avoid having to engage in the hard work needed to live independently. ..."
"... Attempts at repairing historical racial inequity read as cheating in that paradigm, and even as hostile since they can easily observe white people who are just as poor or poorer than those who racial politics focuses upon. ..."
"... The extent to which "poor white people" vote against their alleged economic interests is overblown. To a large extent, they do not vote at all nor is anyone or anything on the ballot to represent their interests. And, yes, they are misinformed systematically by elites out to screw them and they know this, but cannot do much to either clear up their own confusion or fight back. ..."
"... The mirror image problem - of elites manipulating the system to screw the poor and merely middle-class - is daily in the news. Both Presidential candidates have been implicated. So, who do you recommend they vote for? ..."
"... My understanding is trumps support disproportionately comes from the small business owning classes, Ie a demographic similar to the petite bourgeoisie who have often been heavily involved in reactionary movements. This gets oversold as "working class" when class is defined by education level rather than income. ..."
"... Eric Berne, in The Structures and Dynamics of Organizations and Groups, proposed that among the defining characteristics of a coherent group is an explicit boundary which determines whether an individual is a member of the group or not. (If there is no boundary, nothing binds the assemblage together; it is a crowd.) The boundary helps provide social cohesion and is so important that groups will create one if necessary. Clearly, boundaries exclude as well as include, and someone must play the role of outsider. ..."
"... I am somewhat suspicious of leaving dominating elites out of these stories of racism as an organizing principle for political economy or (cultural) community. ..."
"... Racism served the purposes of a slaveholding elite that organized political communities to serve their own interests. (Or, vis a vis the Indians a land-grab or genocide.) ..."
"... Racism serves as an organizing principle. Politically, in an oppressive and stultifying hierarchy like the plantation South, racism not incidentally buys the loyalty of subalterns with ersatz status. ..."
"... For a time, the balkanization of American political communities by race, religion and ethnicity was an effective means to the dominance of an tiny elite with ties to an hegemonic community, but it backfired. Dismantling that balkanization has left the country with a very low level of social affiliation and thus a low capacity to organize resistance to elite depredations. ..."
Aug 01, 2004 | crookedtimber.org

Rich Puchalsky 08.04.16 at 11:40 am 177

fn: "Of course there is a subtext to these racist hate campaigns that someone else here raised and rich ran with a bit, which is the hatred of the unemployed. I think a lot of people voting leave imagine that the next thing on the agenda is slashing the dole to force poor white people to do the work the Eastern Europeans did. "

Yes, in part. In part, also, people imagine that poor citizens will get jobs that previously were done by migrants. This has a hatred of slackers element that is bad, but as economics, it's pretty well-founded that if you reduce the size of the labor pool relative to the population then unemployment will go down and wages will go up. Neoliberals often argue that people should be glad to lose employment at 50 so that people from other countries can have higher incomes, and leftists often agree because hey "free movement" and because after all the professional class jobs aren't at risk. But strangely enough some people seem to resent this.

Layman 08.04.16 at 11:48 am 178

Lupita: "I think Trump is afraid the imperial global order presided by the US is about to crash and thinks he will be able to steer the country into a soft landing by accepting that other world powers have interests, by disengaging from costly and humiliating military interventions, by re-negotiating trade deals, and by stopping the mass immigration of poor people."

... ... ...

Rich Puchalsky 08.04.16 at 12:03 pm

"I can't recall any particular instance where someone made this argument."

No one has literally argued that people should be glad to lose employment: that part was hyperbole. But the basic argument is often made quite seriously. See e.g. outsource Brad DeLong.

engels 08.04.16 at 12:25 pm

While this may be the effect of some neoliberal policies, I can't recall any particular instance where someone made this argument

Maybe this kind of thing rom Henry Farrell? (There may well be better examples.)

Is some dilution of the traditional European welfare state acceptable, if it substantially increases the wellbeing of current outsiders (i.e. for example, by bringing Turkey into the club). My answer is yes, if European leftwingers are to stick to their core principles on justice, fairness, egalitarianism etc

http://crookedtimber.org/2005/05/31/talking-turkey-over-welfare/

Lupita 08.04.16 at 2:42 pm

Large numbers of low-income white southern Americans consistently vote against their own economic interests. They vote to award tax breaks to wealthy people and corporations, to cut unemployment benefits, to bust unions, to reward companies for outsourcing jobs, to resist wage increases, to cut funding for health care for the poor, to cut Social Security and Medicare, etc.

The same thing has happened in Mexico with neoliberal government after neoliberal government being elected. There are many democratically elected neoliberal governments around the world.

Why might this be?

In the case of Mexico, because Peña Nieto's wife is a telenovela star. How cool is that? It places Mexico in the same league as 1st world countries, such as France, with Carla Bruni.


Patrick 08.04.16 at 4:32 pm

To the guy who asked- poor white people keep voting Republican even though it screws them because they genuinely believe that the country is best off when it encourages a culture of "by the bootstraps" self improvement, hard work, and personal responsibility. They view taxing people in order to give the money to the supposedly less fortunate as the anti thesis of this, because it gives people an easy out that let's them avoid having to engage in the hard work needed to live independently.

They see it as little different from letting your kid move back on after college and smoke weed in your basement. They don't generally mind people being on unemployment transitionally, but they're supposed to be a little embarrassed about it and get it over with as soon as possible.

They not only worry that increased government social spending will incentivize bad behavior, they worry it will destroy the cultural values they see as vital to Americas past prosperity. They tend to view claims about historic or systemic injustice necessitating collective remedy because they view the world as one in which the vagaries of fate decree that some are born rich or poor, and that success is in improving ones station relative to where one starts.

Attempts at repairing historical racial inequity read as cheating in that paradigm, and even as hostile since they can easily observe white people who are just as poor or poorer than those who racial politics focuses upon. Left wing insistence on borrowing the nastiest rhetoric of libertarians ("this guy is poor because his ancestors couldn't get ahead because of historical racial injustice so we must help him; your family couldn't get ahead either but that must have been your fault so you deserve it") comes across as both antithetical to their values and as downright hostile within the values they see around them.

All of this can be easily learned by just talking to them.

It's not a great world view. It fails to explain quite a lot. For example, they have literally no way of explaining increased unemployment without positing either that everyone is getting too lazy to work, or that the government screwed up the system somehow, possibly by making it too expensive to do business in the US relative to other countries. and given their faith in the power of hard work, they don't even blame sweatshops- they blame taxes and foreign subsidies.

I don't know exactly how to reach out to them, except that I can point to some things people do that repulse them and say "stop doing that."


bruce wilder 08.04.16 at 5:50 pm

The extent to which "poor white people" vote against their alleged economic interests is overblown. To a large extent, they do not vote at all nor is anyone or anything on the ballot to represent their interests. And, yes, they are misinformed systematically by elites out to screw them and they know this, but cannot do much to either clear up their own confusion or fight back.

The mirror image problem - of elites manipulating the system to screw the poor and merely middle-class - is daily in the news. Both Presidential candidates have been implicated. So, who do you recommend they vote for?

There is serious deficit of both trust and information among the poor. Poor whites hardly have a monopoly; black misleadership is epidemic in our era of Cory Booker socialism.


bruce wilder 08.04.16 at 7:05 pm

Politics is founded on the complex social psychology of humans as social animals. We elevate it from its irrational base in emotion to rationalized calculation or philosophy at our peril.


T 08.04.16 at 9:17 pm

@Layman
I think you're missing Patrick's point. These voters are switching from one Republican to another. They've jettisoned Bush et. al. for Trump. These guys despise Bush. They've figured out that the mainstream party is basically 30 years of affinity fraud. So, is your argument is that Trump even more racist? That kind of goes against the whole point of the OP. Not saying that race doesn't matter. Of course it does. But Trump has a 34% advantage in non-college educated white men. It just isn't the South. Why does it have to be just race or just class?


Ronan(rf) 08.04.16 at 10:35 pm

"I generally don't give a shit about polls so I have no "data" to evidence this claim, but my guess is the majority of Trump's support comes from this broad middle"

My understanding is trumps support disproportionately comes from the small business owning classes, Ie a demographic similar to the petite bourgeoisie who have often been heavily involved in reactionary movements. This gets oversold as "working class" when class is defined by education level rather than income.

This would make some sense as they are generally in economically unstable jobs, they tend to be hostile to both big govt (regulations, freeloaders) and big business (unfair competition), and while they (rhetorically at least) tend to value personal autonomy and self sufficiency , they generally sell into smaller, local markets, and so are particularly affected by local demographic and cultural change , and decline. That's my speculation anyway.

T 08.05.16 at 3:12 pm

@patrick @layman

Patrick, you're right about the Trump demographic. https://fivethirtyeight.com/features/the-mythology-of-trumps-working-class-support/

Layman - Why are these voters switching from Bush et al to Trump? Once again, Corey's whole point is that there is very little difference between the racism of Trump and the mainstream party since Nixon. Is Trump just more racist? Or are the policies of Trump resonating differently than Bush for reasons other than race? Are the folks that voted for the other candidates in the primary less racist so Trump supporters are just the most racist among Republicans? Cruz less racist? You have to explain the shift within the Republican party because that's what happened.


Anarcissie 08.06.16 at 3:00 pm

Faustusnotes 08.06.16 at 1:50 pm @ 270 -

Eric Berne, in The Structures and Dynamics of Organizations and Groups, proposed that among the defining characteristics of a coherent group is an explicit boundary which determines whether an individual is a member of the group or not. (If there is no boundary, nothing binds the assemblage together; it is a crowd.) The boundary helps provide social cohesion and is so important that groups will create one if necessary. Clearly, boundaries exclude as well as include, and someone must play the role of outsider. While Berne's theories are a bit too nifty for me to love them, I have observed a lot of the behaviors he predicts. If one wanted to be sociobiological, it is not hard to hypothesize evolutionary pressures which could lead to this sort of behavior being genetically programmed. If a group of humans, a notably combative primate, does not have strong social cohesion, the war of all against all ensues and everybody dies. Common affections alone do not seem to provide enough cohesion.

In an earlier but related theory, in the United States, immigrants from diverse European communities which fought each other for centuries in Europe arrived and managed to now get along because they had a major Other, the Negro, against whom to define themselves (as the White Race) and thus to cohere sufficiently to get on with business. The Negro had the additional advantage of being at first a powerless slave and later, although theoretically freed, was legally, politically, and economically disabled - an outsider who could not fight back very effectively, nor run away. Even so, the US almost split apart and there continue to be important class, ethnic, religious, and regional conflicts. You can see how these two theories resonate.

It may be that we can't have communities without this dark side, although we might be able to mitigate some of its destructive effects.


bruce wilder 08.06.16 at 4:28 pm

I am somewhat suspicious of leaving dominating elites out of these stories of racism as an organizing principle for political economy or (cultural) community.

Racism served the purposes of a slaveholding elite that organized political communities to serve their own interests. (Or, vis a vis the Indians a land-grab or genocide.)

Racism serves as an organizing principle. Politically, in an oppressive and stultifying hierarchy like the plantation South, racism not incidentally buys the loyalty of subalterns with ersatz status. The ugly prejudices and resentful arrogance of working class whites is thus a component of how racism works to organize a political community to serve a hegemonic master class. The business end of racism, though, is the autarkic poverty imposed on the working communities: slaves, sharecroppers, poor blacks, poor whites - bad schools, bad roads, politically disabled communities, predatory institutions and authoritarian governments.

For a time, the balkanization of American political communities by race, religion and ethnicity was an effective means to the dominance of an tiny elite with ties to an hegemonic community, but it backfired. Dismantling that balkanization has left the country with a very low level of social affiliation and thus a low capacity to organize resistance to elite depredations.

engels 08.07.16 at 1:02 am

But how did that slavery happen

Possible short answer: the level of technological development made slavery an efficient way of exploiting labour. At a certain point those conditions changed and slavery became a drag on further development and it was abolished, along with much of the racist ideology that legitimated it.


Lupita 08.07.16 at 3:40 am

But how did that slavery happen

In Mesoamerica, all the natives were enslaved because they were conquered by the Spaniards. Then, Fray Bartolomé de las Casas successfully argued before the Crown that the natives had souls and, therefore, should be Christianized rather than enslaved. As Bruce Wilder states, this did not serve the interests of the slaveholding elite, so the African slave trade began and there was no Fray Bartolomé to argue their case.

It is interesting that while natives were enslaved, the Aztec aristocracy was shipped to Spain to be presented in court and study Latin. This would not have happened if the Mesoamericans were considered inferior (soulless) as a race. Furthermore, the Spaniards needed the local elite to help them out with their empire and the Aztecs were used to slavery and worse. This whole story can be understood without recurring to racism. The logic of empire suffices.

[Sep 02, 2019] How Can Older Workers Compete In An Economy That Values Youth

May 28, 2016 | www.zerohedge.com

...

Workers of all ages are caught in a vice. Older workers need to keep working longer in an economy which values younger workers (and their cheaper healthcare premiums). Younger workers are caught in the vice of "you don't have enough experience" and "how do I get experience if nobody will hire me?"

Middle-aged workers are caught between the enormous Millennial generation seeking better jobs and the equally numerous baby Boom generation seeking to work a few more years to offset their interest-starved retirement funds. (Thank you, predatory and rapacious Federal Reserve for siphoning all our retirement fund interest to your cronies the Too Big to Fail Banks.)

Workers 55 and older are undeniably working longer. Here is the labor participation rate for 55+ workers:

... And here's why so many workers have to work longer--earned income's share of the GDP has been in a free-fall for decades as Fed-funded financiers and corporations skim an ever greater share of the nation's GDP.

I am 62, very much an older worker with a startling 46 years in the work force (first formal paycheck, 1970 from Dole Pineapple). (Thanks to the Fed's zero-interest rate policy, I should be able to retire at 93 or so--unless the Fed imposes a negative-rate policy on me and the other serfs.)

But I recall with painful clarity the great hardships and difficulties I experienced in the recessions of 1973-74, 1981-82 and 1990-91 when I was in younger demographics. My sympathies are if anything more with younger workers, as it is increasingly difficult to get useful on-the-job experience if you're starting out.

That said, here are some suggestions for 55+ workers seeking to find work in a very competitive job/paid work market.

1. Target sectors that haven't changed much. There's a reason so many older guys find a niche in Home Depot and Lowe's--power saws, lumber, appliances, etc. haven't changed that much (except their quality has declined) for 40 years.

The same can be said of many areas of retail sales, house-cleaning, caring for children, etc.

Everyone knows the young have an advantage in sectors dominated by fast-changing technology, so avoid those sectors and stick to sectors where your knowledge and experience is still applicable and valued by employers.

2. If at all possible, get your healthcare coverage covered by a spouse or plan you pay. Those $2,000/month premiums for older workers are a big reason why employers would rather hire a $200/month premium younger worker, or limit the hours of older workers to part-time so no healthcare coverage is required.

Telling an employer you already have healthcare coverage may have a huge impact on your chances of getting hired.

3. If you have any computer-network-social media skills, you can get paid to help everyone 55+ with fewer skills. Your computer skills may not be up to the same level as a younger person's, but they are probably far more advanced than other 55+ folks. Many older people are paying somebody $35/hour or more to help them set up email, fix their buggy PCs and Macs, get them started on Facebook, etc. It might as well be you.

4. Focus on fields where managerial experience and moxie is decisive. Even highly educated young people have a tough time managing people effectively because they're lacking experience. Applying biz-school case studies to the real world isn't as easy as it looks. (I found apologizing to my older employees necessary and helpful. Do they teach this in biz school? I doubt it.)

The ability to work with (and mentor) a variety of people is an essential skill, and it's one that tends to come with age and experience.

5. Reliability matters. The ability to roll with the punches, show up on time, do what's needed to get the job done, and focus on outcomes rather than process are still core assets in a work force.

Being 55+ doesn't automatically mean someone has those skills, but they tend to come with decades of work.

6. If nobody will hire you, start your own enterprise to fill scarcities and create value in your community. The classic example is a handyperson, as it's very difficult for a young person to acquire the spectrum of experience needed to efficiently assess a wide array of problems and go about fixing them.

#3 above is another example of identifying one's strengths and then seeking a scarcity to fill. Value, profits and high wages flow to scarcity. Don't try to compete in supplying what's abundant; seek out scarcities and work on addressing those in a reliable fashion.

Every age group has its strengths and weaknesses, and the task facing all of us is to 1) identify scarcities we can fill and 2) seek ways to play to our strengths.

Shizzmoney

That's easy: the elitist old people in power will start a war, force the young people into that war, where they will all be killed and the old people get their jobs.

Also, for those young people who protest the war, the government and corporate military security forces will detain and kill them, too.

Problem solved!

KnuckleDragger-X

Bob Seger: Ballad of the Yellow Berets

https://www.youtube.com/watch?v=WP6Xt3GBhdQ

Syrin

Exactly. Value youth? Is that why we saddle them with $250,000 worth of student loan debt and a degree in women's studies to find no jobs because we let in illegals and skilled workers with Visas from foreign countries? Seems like we hate our youth. Of course, they deserve it since they have been focused on being social justice fucktards rather than getting any marketable skills and paying attention to what the gov't is doing to their future. Schadenfreude.

deja

No, they are stupid enough to saddle themselves with $250,000 worth of student loan debt for a degree in womens' studies.

cougar_w

The OP doesn't make much sense to me. Most of the work people my age do, the young people either don't want or are not qualified for. Maintaining vital COBOL apps or air traffic controller software from the 70's? Really? And the ones are, they don't mind working with older employees and seem to enjoy our "gravity".

I work in IT so maybe things are a bit different. Grey beards are huge around here and always will be.

But this has been a challenge for centuries, young people have to find their own way and "their way" (being probably a dream from childhood or an inspiration from a college professor) might not be practical at first. They bounce around a little until marriage hits them and then they find something that works for supporting a family. Same as it ever was. The idea that "their way" is some kind of unswerving life's mission is usually part of the corporate "just do it" meme that sells $400 specialty running shoes. Yeah whatever, just figure it out actually, life will tell you what you are supposed to be doing, and who you are supposed to be doing it with.

GeezerGeek

The market for COBOL programmers had a sudden surge around Y2K, but only certain industries still maintain their old COBOL apps. Curiously, a certain computer/software has recently tried pushing a visual version of COBOL, much like Gates did when he came out with Visual Basic back in the early 1990s. I retired after 40 years in IT in 2011, so I am a bit out of touch where COBOL is concerned. Does anyone even teach it anymore in college? Maybe if someone modified it to create phone apps and games it would once again be popular.

Abbie Normal

Then it's a good thing I didn't follow my undergrad English Prof's advice and switch my major from science to arts, because he thought there was some "real intelligence" in my writing style that even his grad students lacked. Maybe I should look him up....

eatthebanksters

I have two buddies, one a 61 year old attonery who has never lost a case and the other a 59 year old facilities director. The lawyer has been seeking work for 6 years and has pretty much given up...he can't even get hired at lesser jobs because he is overqualified and 'will leave when something better comes along'. The facilities director has a great resume and knows his stuff but has been out of work for almost two years. He has come in 'second' more times than I can count. He is working od jobs and living with a friends mother, exchanging work on the house for rent and meals. Welcome to Obama's economy.

N0TaREALmerican

He'd work if he'd accept less money, but he feels "entitled to earn what HE thinks he's worth". Just another lazy old-fart who feels the world owns him something. Welcome to a competitive economy old-fart, nobody said life was fair. Stop bitching and work for less.

mary mary

If you ever need an attorney, you might look for an experienced attorney who worked so hard that he never lost a case.

If you ever inherit a zillion bucks and buy a bunch of properties, you might confer with an experienced facility manager who actually managed a bunch of properties.

I doubt an attorney who never lost a case achieved that record by going around saying, "somebody owes me something".

I doubt a facilities manager who managed a bunch of properties achieved that by going around saying, "somebody owes me something".

Baa baa

What a load of crap. Most will take anything. I know, I am one. Don't lecture me about being "entitled" you punk. Your post reeks of the entitlement generation. Slug through 50 years of working, rearing a family, kids to college... I am beginning to wonder if the hundreds of thousands spent on the education and well-being of your ingrate ass was a misallocation of funds.

corporatewhore

Give credit where credit is due. This inability to find work at an older age has been going on for years and can't be blamed on Obama. Senior buyers at Macy's, older workers at Monsanto or television weather people at KSDK in St Louis all suffer the same fate. Labor cost and benefits are all less for the younger generation no matter what level of experience or capability. We develop a mindset throughout our productive career that we are indispensable and worth it because of our knowledge, contacts and industry wherewithal. It's all an illusion and we are NOT prepared or equipped to face the reality at an older age that we are completely dispensable.

At an older age if you want meaning you have to find it and think out of the paradigm that you've been led to believe is real. No one owes you anything for your experience or wealth of knowledge. Figure it out and rethink yourself as to what you love to do and want to do not what you must do to make money.

At 58 in 2008 I was fucked over by my corporation and wallowed in miserableness and poverty while i worked every contact and firm I knew. Nothing resulted. I had to work 3 part time jobs until I earned 2 full time ones and work over 90 hours per week because I enjoy it. It is work that covers the bills and allows me to create what I want to work on for the future while I still can walk think and breathe.

Best advice to your children: Go in business for yourself because just as it happened to me, it will happen to you when you become 55.

Nobody For President

Thanks for that, corporate whore. That sounds like an honest reprise of an incredibly hard time in your life, and I totally agree. I'm telling all (4) my grandkids, from 7 to 20, to live your life, not someone else's. The oldest one gets it, and I think the other ones will also, if I live long enough, because I walked that walk.

I'm old, and work full time (more or less) and make a living - not a killing, but a living - at it.

nuubee

Good news old people, the economy currently doesn't value anything you can produce, unless you can print money.

Cautiously Pessimistic

You get up every morning
From your 'larm clock's warning
Take the 8:15 into the city
There's a whistle up above
And people pushin', people shovin'
And the girls who try to look pretty
And if your train's on time
You can get to work by nine

... ... ...

mary mary

MSM says Baby Boomers "have stolen everything", but in fact Baby Boomers are having to extend their careers because they're broke. This is the easily foreseeable result of 20+ years of the Fed keeping interest rates artificially low, making Baby Boomers suffer the double-whammy of (1) not having their deferred income (pensions) grow, while (2) inflation in fact continued at 6% annual, thanks also to the Fed keeping interest rates artificially low.

Yes, someone "have stolen everything". That someone is the owners of the Fed.

[Sep 01, 2019] The Unsustainability of Inequality by James K. Galbraith

Notable quotes:
"... First, rising inequality reflects the economic rents captured in resource extraction and production, whether by the owners of those resources or by financiers acting as parasitic middlemen. Second, inequality fosters the extravagant excesses that some now call plutonomy – an economic system in which a small group, the ultra-wealthy, accounts for a large share of total consumption. Under such conditions, a rising tide lifts only yachts, and competitive consumption creates an escalating pattern of what Thorstein Veblen, perhaps the greatest American economist, called conspicuous waste. Lastly, rising inequality is a good indicator of financial instability, which increases the probability of an impending crash. ..."
nepal24hours.com

Rising inequality is symptomatic of a wide range of economic and political problems that are standing in the way of achieving a just and sustainable society. But for all the concern about the income and wealth gap within countries in recent years, there has been surprisingly little acknowledgement of the forces actually driving the trend.

"Sustainability" is a relatively new organizing principle in global policy. It is new partly because economists have long been largely hostile to the very idea. Postwar neoclassical growth theories deliberately ignored resource and environmental limits, disparaged and disdained ecologists, and promised what was effectively impossible: perpetual growth fueled by unlimited resources, the free disposal of wastes, and never-ending technological progress. Early warnings – notably the Club of Rome's pathbreaking 1972 report, The Limits to Growth – were ridiculed. More recently, the science of limits has gained acceptance, but most economists remain preoccupied with growth.

But there is at least one dimension of unsustainability that not even economists can overlook: inequality. Income and wealth disparities, along with other forms of inequality, are relevant to sustainability for at least three reasons.

First, rising inequality reflects the economic rents captured in resource extraction and production, whether by the owners of those resources or by financiers acting as parasitic middlemen. Second, inequality fosters the extravagant excesses that some now call plutonomy – an economic system in which a small group, the ultra-wealthy, accounts for a large share of total consumption. Under such conditions, a rising tide lifts only yachts, and competitive consumption creates an escalating pattern of what Thorstein Veblen, perhaps the greatest American economist, called conspicuous waste. Lastly, rising inequality is a good indicator of financial instability, which increases the probability of an impending crash.

For all these reasons, understanding and controlling the rise of inequality is an ecological, socioeconomic, and political imperative. It is, in other words, a sustainability issue.

MEASURE FOR MEASURE

To get a grip on economic inequality, we must overcome two major sources of confusion. On the theoretical side, mainstream economics treats inequality largely as a byproduct of supply and demand in "labor markets." It is thus regarded as a "microeconomic" phenomenon, driven on the demand side by technological change, and on the supply side by a barely observable quantum that goes by the name of human skill.

When economists write about policies that affect inequality, they tend to work within this market framework. The labor market may be local, regional, or – at the very most – national. Proposed policies focus mainly on the characteristics and capabilities of individuals and how they can improve their positions in the market. These matters are undoubtedly important, particularly when it comes to education and health, but they ignore the broader "macroeconomic" forces – booms and busts, interest rates and debt, exchange rates and commodity prices – that affect individuals, firms, economic sectors, and entire countries.

On the empirical side, there is a question of information: What can we know from the available data? Most of the data we have come from surveys, and most surveys focus on households. These data are relevant for judging economic welfare – and also for thinking about how people with different characteristics (age, gender, race, education, and so on) interact with markets. Yet householders are not employees, and their income is not the same as the wages paid for particular kinds of work. So, data collected on households are several steps away from production, pay, and the forces of structural change.

When it comes to international and comparative analysis, there is yet another problem: surveys are expensive. More surveys are conducted in stable rich countries than in unstable poor ones. And they can be conceptually inconsistent, because the questions differ according to the choices made by those managing the surveys. Are we measuring income? Expenditure? Before or after tax? As with all surveys, the only answers one gets are to the questions asked.

An alternative approach that has become popular in recent years is to consult income-tax records. But these data are even more sparse and inconsistent than surveys, and such records are not available for all countries (indeed, not all countries have an income tax). So, in the effort to measure inequality within countries and around the world, there has long been less signal than noise.

INEQUALITY BY THE NUMBERS

For the past two decades, my students and I have been working on ways to address these measurement shortcomings. We have sought out payroll records that cover a diverse range of countries over many years, and in broadly consistent terms. With these data, we can measure economic inequalities in the structure of pay, which then allows us to estimate the associated inequalities of household income, both across countries and through time.

To explain the philosophy behind this approach, I often refer to a line from the American philosopher Charles Sanders Peirce's essay "The Fixation of Belief":

Kepler undertook to draw a curve through the places of Mars [ ] and his greatest service to science was in impressing on men's minds that this was the thing to be done if they wished to improve astronomy; that they were not to content themselves with inquiring whether one system of epicycles was better than another, but that they were to sit down to the figures, and find out what the curve, in truth, was.

We have attempted to follow this advice, and we have had a fair amount of success. Our measures have proven to be largely reliable and consistent with the existing survey record, while also sensitive to known historical events: wars, revolutions, and the like. Moreover, we have been able to look for patterns at the regional and even global level.

What would consistent patterns beyond the national level imply? I believe they are prima facie evidence that the main source of change in various forms of inequality lies in transnational developments, not in local conditions. To understand the problem of inequality, then, we need to study common developments across a continental or even global economic space.

As it happens, we have identified patterns showing a consistent gradient in levels of income inequality across both space and time. If one looks across space, there are not too many surprises. Income inequality within countries and regions rises as one moves from north to south, reflecting the concentration of advanced industry and middle-class welfare states in countries that were once the seats of empire. In Europe, inequality also rises as one moves from "East" to "West," reflecting the legacy of state socialism.

Moreover, countries in close proximity, and with similar income levels and neighborly diplomatic and trade relations, have relatively similar levels of inequality – as one can see very clearly in maps. Common sense tells us that if they did not have similar levels of inequality, regional migration patterns would sooner or later even things out.

Likewise, patterns of inequality change over time. In particular, there is a general movement toward higher inequality from the 1980s until 2000, after which inequality begins to stabilize. So far, all of this is what one would expect, which attests to the quality of the data. Our attempt to capture a much broader picture of inequality across the world has not been misguided.

WAVES OF INEQUALITY

These movements show, quite plainly, that levels of inequality once widely associated with the Third World are now quite generalized globally. The First World has not become poorer, but it has grown much less equal. There are a few exceptions, of course, and they should not come as a surprise. Measures of inequality in Denmark or Finland, for example, are not far from where they were a generation back. And some countries in Central and Eastern Europe – the Czech Republic stands out – have low levels of inequality (though higher than under their severe post-war communist regimes).

Now, consider another interesting pattern: the temporal movement of inequality within countries is very similar to that between countries. If one takes a standard measure of inequality between countries (not weighted for population, lest China and India dominate the data), one finds that it has risen both between and within countries at the same time. Again, this no surprise: rich countries comprise relatively wealthy people, whereas the people of poor countries are poorer. In a global economy, when inequality between people changes, it is natural that the inequalities between their respective countries change in a similar way.

But here it is important to remember that we are picking out the movement of inequality within countries, measured separately using national statistics, and standardized by an international statistical bureau. There are about 155 countries in our most recent data set, and the predominant patterns across all of them tell the essential story. From 1963 to 1971, no particular trend stands out. There is a bump in inequality within countries in 1973, followed by a modest decline. For much of the world – for poorer countries and poorer peoples alike, though not for the troubled rich – the 1970s were a time of growth and progress.

Then comes a key turning point. Beginning in 1981, inequality starts rising in waves around the world, increasing relentlessly until 2000, at which point the waves subside. In this era, the first major wave is dominated by Latin America and Africa, and subsequent waves are driven by the collapse of the Soviet Union and the associated regime changes in Eastern Europe. Finally, economic liberalization in Asia fuels another wave that culminates in the 1997 Asian financial crisis. From 2000, the rise in inequality slows, and inequalities even decline in parts of the world, including Latin America, China, and the Russian Federation.

A TALE OF FINANCIAL HISTORY

The message contained in these numbers is neither subtle nor obscure. This is a story about the relationship between debtors and creditors in the world economy. Under the post-World War II Bretton Woods framework, stability prevailed – until the system collapsed in 1971, when the United States ended the dollar's convertibility into gold. In 1973, the oil shock and a commodity boom led to a surge in credit in Latin America and elsewhere as countries took on commercial-bank debt to sustain growth in the face of higher fuel prices. As developing countries grew, their middle classes expanded and inequalities declined.

All of that ended in 1981 with the start of a worldwide debt crisis that emanated from monetary-policy changes in the US, where interest rates shot up to 22%. No longer able to pay their debts, developing countries were forced to pursue austerity measures and to abandon their independent industrial development strategies. Commodity prices collapsed, as did the Soviet bloc – much of it heavily indebted – a decade later. The Asian crisis of 1997 rounded out this period.

Inequality at the global level peaked in 2000. In the wake of the dot-com bust and the attacks of September 11, 2001, the US Federal Reserve cut interest rates, and China, growing strongly and now a member of the World Trade Organization, increased its commodity purchases worldwide. Prices and credit conditions improved, and for a while global inequality stopped rising.

The trends in inequality over this period are in keeping with the commonsense insights of Simon Kuznets back in 1955. Kuznets surmised that inequality would rise sharply during the initial stages of economic development, and then decline at later stages. China and India reflect this pattern, but for other developing countries in Asia and Latin America, industrialization and urbanization have been far enough advanced for decades that rapid growth reduces inequality and depression increases it. In a very few rich countries – notably the US and the United Kingdom – rapid growth increases inequalities, because it concentrates income in globally dominant sectors, especially finance and high technology.

So, in the rough history presented above, there are two key elements to consider: the structure of the underlying economies and the effects of booms and busts on that structure. Global forces for boom and bust have tended to affect individual countries and their people in proportion to their ability to resist them. Countries with strong institutions that were able to maintain independence and manage their own affairs fared the best. Those that could not defend themselves against global forces were periodically ravaged by them. In our time, this is the difference between, say, China and Mexico.

These global forces can be identified by the big turning points. The first was the breakdown of Bretton Woods and the rush to private debt in the 1970s. The second was the debt crisis of the 1980s, which was followed by the collapse of oil and commodity prices, and then of Soviet-style socialist governments, and then by liberalization in Asia, culminating in the 1997 crisis – but not in China, which was poised for another decade of double-digit growth. The third big turning point occurred in 2000, when lower interest rates, higher commodity prices, and modest advances in social-welfare policies and national economic development strategies helped to reduce inequality and poverty in Latin America and Russia, while in China, too, inequalities peaked and started to decline.

In Europe, events played out somewhat differently. European countries did not reject neoliberal ideology and re-embrace social-welfare policies after 2000. The introduction of the euro was followed by nearly a decade of easy credit terms, which fueled a boom in housing and commercial construction in Spain, Ireland, Portugal, and Greece (where the boom included the 2004 Olympics, among other projects). This period was not unlike the 1970s in Latin America. But as Herbert Stein, a chairman of the White House Council of Economic Advisers under Richard Nixon and Gerald Ford, famously observed, "If something cannot go on forever, it will stop." In 2009, the global financial crisis brought the happy early days of the euro to an abrupt end.

REIN IT IN

What the available evidence demonstrates is that economic inequality has been regulated over time by the behavior of global finance. The data even show that changes in levels of inequality within the smaller, open economies are closely related to exchange-rate movements. When currencies become overvalued, their countries are vulnerable to Dutch disease – eroding the competitiveness of industry – and to financial crisis. Financial crises and devaluations quickly reestablish the high level of inequality that human-development programs were meant to overcome.

Inequality is thus irreducibly a global and, contrary to what many economists like to think, macroeconomic issue. Labor-market considerations are secondary, crowded out by the dominant macro movements described above. As such, the only way to address inequality effectively is to bring the forces of financial instability, debt peonage, and predatory austerity under control. These forces can be tempered by financial regulation, a function of rich-country governments and central banks. But regulators are of course subject to capture by big finance, and central-bank mandates – whether to target full employment or only price stability – were drafted in an age of national economic policymaking. National central banks – as also the European Central Bank – are not set up to consider their policies' effects on peoples beyond their jurisdictional boundaries.

To be sure, there is still much that nation-states around the world can do to fight inequality when conditions permit. Useful measures include raising the minimum wage, strengthening trade unions, establishing social-insurance schemes, and building infrastructure and providing public goods. The problem is that these forms of progress can be – and regularly are – erased by financial crises and the subsequent imposition of severe austerity. This means that the capacity to reduce inequalities sustainably depends on the capacity for insulation from external financial pressures. However difficult it may be, the rest of the world needs to protect itself from the destabilizing forces of global finance.

In short, economic inequality is tied to the most unstable and unsustainable element of the world system, which is global finance. Achieving anything sustainably – especially, but not only, the reduction of extreme inequalities – requires a financial order that is broadly reformed and that can once again serve as a tool for other institutions and purposes, and not as their self-serving master. This is particularly important as humanity turns toward that other, more critical goal: the sustainability of human life on this planet. Global financial stability is a necessary step on the way to a clean-energy economy – as envisioned in the Green New Deal and similar proposals. At the end of the day, if we want to have a sustainable and civilized future, we need to get a grip on global finance.

James K. Galbraith is Chair in Government/Business Relations at the Lyndon B. Johnson School of Public Affairs, University of Texas at Austin. His most recent books are Inequality: What Everyone Needs to Know and Welcome to the Poisoned Chalice: The Destruction of Greece and the Future of Europe.

[Sep 01, 2019] NetSlaves: True Tales of Working the Web by Bill Lessard

Notable quotes:
"... Being an unemployed techie myself, I cannot begin to describe what a godsend this book is. NETSLAVES finally reveals the truth about what it is to be part of what is likely the most under-appreciated sect of the working class. ..."
"... It is a comment on upper and middle management corporate business practices in general, and the dismal fate of the vast armies of workers used as cannon fodder since day one for the follies of unscrupulous robber barons; or morons who just happen to find themselves in the right place at the right time to make market killings; or Scrooges who will never learn what it is to have a heart. Baldwin and Lessard are heirs to the muckrakers of the early 20th Century. Corporate E-merica, take heed. ..."
Apr 16, 2003 | www.amazon.com
Arthur Lindsey III , April 16, 2003
A 246 Page "Support Group"

Being an unemployed techie myself, I cannot begin to describe what a godsend this book is. NETSLAVES finally reveals the truth about what it is to be part of what is likely the most under-appreciated sect of the working class.

The stale stories of "dorm-room success" have been supplanted by the pathetically sad/darkly humorous accounts of those who have been saddled with with million-dollar job titles, bleeding ulcers, and ramen noodle grocery budgets.

NETSLAVES is an entertaining and enligtening read, written by two men who have actually been passengers in every sewer pipe that is the new-media industry. This book is a must for every modern library, as it can be considered a "warning shot" for those with IT aspirations, or as a source of vindication for those of us who have been dismissed and trampled on. Bravo!

A customer, November 24, 1999

Handwriting on the Wall

NetSlaves tells it like it is for the millions of us on the business end of the IPO and monopoly screwdrivers. Apply these lessons to the law, publishing, automotive, chemical, airline industries, etc., etc. This book is not just a cerebral and satirical indictment of the internet industry.

It is a comment on upper and middle management corporate business practices in general, and the dismal fate of the vast armies of workers used as cannon fodder since day one for the follies of unscrupulous robber barons; or morons who just happen to find themselves in the right place at the right time to make market killings; or Scrooges who will never learn what it is to have a heart. Baldwin and Lessard are heirs to the muckrakers of the early 20th Century. Corporate E-merica, take heed.

[Sep 01, 2019] On the continuing devaluation of the college degrees

Sep 01, 2019 | www.nakedcapitalism.com

Andy Raushner , August 31, 2019 at 4:17 pm

Its just from slow growth and the Boomer deleveraging era. Its a global phenom and its impacts are global into the cultural realm. The college degree boom is a great example of this phenom. It was really based on the surge in consumer debt boom after WWII boosting these supply chains in the US to increased consumption to GDP and reduced manufacturing, which fell in real terms during the 1950-2000 period.

This created traditionally required college degree jobs into a nexus that was originally based around the Baby Boomer generation and strengthened afterwards. Once growth petered in 2007(and we developed a oversupply since 2000) we now have too many people with college degrees.

Even the rich aren't as rich as they were in 2007. Real profits are struggling this cycle and are showing up with weak job growth this year. The unemployment rates flaws are showing up this cycle as well, as total numbers mean little compared historically than the potential that is lowest unemployment can go.

Based on that, the current level of labor market saturation seems to be at a late 70's cycle level. In otherwards, if you adjust the population growth and total size this cycle is doing no better than the Carter era top in 1979 .then we see the whining.

Both the Reagan and Bush II era expansions were a bit better and probably onto a intro of a "boom".

Obviously it is noticeably the Korean, Vietnam and Tech era booms which would require unemployment to fall below 3% to reach, maybe down to 2.5%, which tells you something about potential unemployment drop peaks.

[Aug 31, 2019] US policy after WWII may not be corrupt in the sense of illegal, but it certainly seems corrupt in the sense of morally repugnant as it was designed to preserve welath disparty (especially with the USSR and Asia) which was the result of WWII

As it translated into similar impulses in internal policy, which led to neoliberalism and restoration of the rule of fiancial oligarchy within the USA. The USA experiment with democracy was actually over in 1945
Aug 31, 2019 | www.nakedcapitalism.com

Ian Perkins , August 31, 2019 at 10:37 am

'Sanders has said that we live in a "corrupt political system designed to protect the wealthy and the powerful." Warren said it's a "rigged system that props up the rich and powerful and kicks dirt on everyone else."'
Yet the rest of the article focuses almost entirely on internal US shenanigans. When it comes to protecting wealth and power, George Kennan hit the nail on the head in 1948, with "we have about 50% of the world's wealth but only 6.3 of its population. This disparity is particularly great as between ourselves and the peoples of Asia. In this situation, we cannot fail to be the object of envy and resentment. Our real task in the coming period is to devise a pattern of relationships, which will permit us to maintain this position of disparity."

This, which has underpinned US policy ever since, may not be corrupt in the sense of illegal, but it certainly seems corrupt in the sense of morally repugnant to me.

shinola , August 31, 2019 at 11:09 am

Approaching from the opposite direction, if someone were to say "I sincerely believe that the USA has the most open & honest political system and the fairest economic system in human history" would you not think that person to be incredibly naive (or, cynically, a liar)?

There has been, for at least the last couple of decades. a determined effort to do away with corruption – by defining it away. "Citizens United" is perhaps the most glaring example but the effort is ongoing; that Weiner op-ed is a good current example.

JBird4049 , August 31, 2019 at 8:35 pm

Shinola, I'm reminded of the statement "Raymond Shaw is the kindest, bravest, warmest, most wonderful human being I've ever known in my life." in the movie Manchurian Candidate . Much of what is said today just pops out as prepackaged propaganda.

It was possible twenty, thirty, forty years ago to make a reasonable case that the federal government, as well as many of the state and municipal ones, were fairly honest and functional. It is still possible that the writer believes what he wrote, but I think saying that the belief that our system is rigged is mere irresponsible cynicism is at best an example of charming naïveté and more likely cynical propagandistic fiction itself.

[Aug 31, 2019] Linux on your laptop A closer look at EFI boot options

Aug 31, 2019 | www.zdnet.com
Before EFI, the standard boot process for virtually all PC systems was called "MBR", for Master Boot Record; today you are likely to hear it referred to as "Legacy Boot". This process depended on using the first physical block on a disk to hold some information needed to boot the computer (thus the name Master Boot Record); specifically, it held the disk address at which the actual bootloader could be found, and the partition table that defined the layout of the disk. Using this information, the PC firmware could find and execute the bootloader, which would then bring up the computer and run the operating system.

This system had a number of rather obvious weaknesses and shortcomings. One of the biggest was that you could only have one bootable object on each physical disk drive (at least as far as the firmware boot was concerned). Another was that if that first sector on the disk became corrupted somehow, you were in deep trouble.

Over time, as part of the Extensible Firmware Interface, a new approach to boot configuration was developed. Rather than storing critical boot configuration information in a single "magic" location, EFI uses a dedicated "EFI boot partition" on the desk. This is a completely normal, standard disk partition, the same as which may be used to hold the operating system or system recovery data.

The only requirement is that it be FAT formatted, and it should have the boot and esp partition flags set (esp stands for EFI System Partition). The specific data and programs necessary for booting is then kept in directories on this partition, typically in directories named to indicate what they are for. So if you have a Windows system, you would typically find directories called 'Boot' and 'Microsoft' , and perhaps one named for the manufacturer of the hardware, such as HP. If you have a Linux system, you would find directories called opensuse, debian, ubuntu, or any number of others depending on what particular Linux distribution you are using.

It should be obvious from the description so far that it is perfectly possible with the EFI boot configuration to have multiple boot objects on a single disk drive.

Before going any further, I should make it clear that if you install Linux as the only operating system on a PC, it is not necessary to know all of this configuration information in detail. The installer should take care of setting all of this up, including creating the EFI boot partition (or using an existing EFI boot partition), and further configuring the system boot list so that whatever system you install becomes the default boot target.

If you were to take a brand new computer with UEFI firmware, and load it from scratch with any of the current major Linux distributions, it would all be set up, configured, and working just as it is when you purchase a new computer preloaded with Windows (or when you load a computer from scratch with Windows). It is only when you want to have more than one bootable operating system – especially when you want to have both Linux and Windows on the same computer – that things may become more complicated.

The problems that arise with such "multiboot" systems are generally related to getting the boot priority list defined correctly.

When you buy a new computer with Windows, this list typically includes the Windows bootloader on the primary disk, and then perhaps some other peripheral devices such as USB, network interfaces and such. When you install Linux alongside Windows on such a computer, the installer will add the necessary information to the EFI boot partition, but if the boot priority list is not changed, then when the system is rebooted after installation it will simply boot Windows again, and you are likely to think that the installation didn't work.

There are several ways to modify this boot priority list, but exactly which ones are available and whether or how they work depends on the firmware of the system you are using, and this is where things can get really messy. There are just about as many different UEFI firmware implementations as there are PC manufacturers, and the manufacturers have shown a great deal of creativity in the details of this firmware.

First, in the simplest case, there is a software utility included with Linux called efibootmgr that can be used to modify, add or delete the boot priority list. If this utility works properly, and the changes it makes are permanent on the system, then you would have no other problems to deal with, and after installing it would boot Linux and you would be happy. Unfortunately, while this is sometimes the case it is frequently not. The most common reason for this is that changes made by software utilities are not actually permanently stored by the system BIOS, so when the computer is rebooted the boot priority list is restored to whatever it was before, which generally means that Windows gets booted again.

The other common way of modifying the boot priority list is via the computer BIOS configuration program. The details of how to do this are different for every manufacturer, but the general procedure is approximately the same. First you have to press the BIOS configuration key (usually F2, but not always, unfortunately) during system power-on (POST). Then choose the Boot item from the BIOS configuration menu, which should get you to a list of boot targets presented in priority order. Then you need to modify that list; sometimes this can be done directly in that screen, via the usual F5/F6 up/down key process, and sometimes you need to proceed one level deeper to be able to do that. I wish I could give more specific and detailed information about this, but it really is different on every system (sometimes even on different systems produced by the same manufacturer), so you just need to proceed carefully and figure out the steps as you go.

I have seen a few rare cases of systems where neither of these methods works, or at least they don't seem to be permanent, and the system keeps reverting to booting Windows. Again, there are two ways to proceed in this case. The first is by simply pressing the "boot selection" key during POST (power-on). Exactly which key this is varies, I have seen it be F12, F9, Esc, and probably one or two others. Whichever key it turns out to be, when you hit it during POST you should get a list of bootable objects defined in the EFI boot priority list, so assuming your Linux installation worked you should see it listed there. I have known of people who were satisfied with this solution, and would just use the computer this way and have to press boot select each time they wanted to boot Linux.

The alternative is to actually modify the files in the EFI boot partition, so that the (unchangeable) Windows boot procedure would actually boot Linux. This involves overwriting the Windows file bootmgfw.efi with the Linux file grubx64.efi. I have done this, especially in the early days of EFI boot, and it works, but I strongly advise you to be extremely careful if you try it, and make sure that you keep a copy of the original bootmgfw.efi file. Finally, just as a final (depressing) warning, I have also seen systems where this seemed to work, at least for a while, but then at some unpredictable point the boot process seemed to notice that something had changed and it restored bootmgfw.efi to its original state – thus losing the Linux boot configuration again. Sigh.

So, that's the basics of EFI boot, and how it can be configured. But there are some important variations possible, and some caveats to be aware of.

[Aug 30, 2019] Over 50, Unemployed, Depressed and Powerless by D. A. Wolf

Notable quotes:
"... I know what it feels like to be marginalized because you're out of work. To be judged by others as if there's something wrong with you. To grow increasingly depressed, demoralized and despairing as three months turns into six months and that goes on for a year or more; as rejection after rejection becomes crushing, humiliating, and leaves you feeling worthless. ..."
"... All money-related impacts aside, you lose confidence. You wear out. You start to give up ..."
"... Now and then, an acquaintance will make an off-hand remark about those who borrow money or live on credit cards. The assumption is that credit purchases are frivolous, or that the person who racks up consumer debt does so out of irresponsibility and poor judgment. ..."
"... Never assume. Yours truly? I borrowed to put food on the table. I borrowed to pay for school supplies for my kids. I borrowed to enable them to take advantage of academic opportunities that they earned through their own hard work. I also counted my blessings. While I had no family to assist, my kids were healthy and doing well, I was basically healthy despite chronic pain, and I was able to use credit. Borrowing is a double-edged sword of course, especially if it continues for an extended period. But for my little household, debt was the only path to survival. For all I know, it will be again. ..."
"... These days? I still live on a tight budget, I dream of recovering from the years of financial devastation "someday," and I take every gig I can get. Willingly. I've gained new skills along the way and continue to refine them, I'm always looking for another project and thrilled when I nab one, and I'm accustomed to a 12- to 14-hour workday. I put in long hours throughout my corporate career and I have no problem doing so now. In fact, I'm grateful for these workdays and I take none of them for granted. Moreover, I suggest that few of us should take our sources of income as a given ..."
"... The longer that Americans are unemployed, the more likely they are to report signs of poor psychological well-being," says the study. "About one in five Americans who have been unemployed for a year or more say they currently have or are being treated for depression - almost double the rate among those who have been unemployed for five weeks or less. ..."
"... To be in this position - wanting to work, needing to work, knowing you still have much to contribute but never getting a foot in the door - is deeply frustrating, horribly depressing, and leaves us feeling powerless. Add up these elements and you have the formula for despair. ..."
"... One small act of compassion can breathe new hope into the worst situation. And here's what I know with 100% certainty. We may be unemployed, we may be depressed but we aren't powerless if we come together and try to help one another. ..."
Apr 30, 2016 | Daily Plate of Crazy

Are you over 50, unemployed, depressed and feeling powerless? For that matter, are you any age and feeling hopeless because you can't seem to land a job?

Frustrated Middle Age Man

The recession may be officially over, and for some segments of the population, things are looking up. But too many are still sinking or hanging on by the skin of their teeth. Long-term unemployment or underemployment has become a way of life.

This issue, for me, is personal.

I know what it feels like to be marginalized because you're out of work. To be judged by others as if there's something wrong with you. To grow increasingly depressed, demoralized and despairing as three months turns into six months and that goes on for a year or more; as rejection after rejection becomes crushing, humiliating, and leaves you feeling worthless.

All money-related impacts aside, you lose confidence. You wear out. You start to give up. And you don't even make it into the "statistics." It's been too long since your last employment relationship.

Overqualified, Over-Educated, Over 50

Despite my fancy educational background and shiny corporate career history, for a number of years I was unable to obtain work that was even remotely close to using my skills. Paying me a living wage? Let's not even discuss it. I must have applied to 100 positions over the course of several years, attended the usual networking events, and schmoozed every contact I could come up with.

No go. I suffered from the three O's: Overqualified, Over-educated and Over 50, though I may not have looked it. That last? If you ask me, age was the kicker. Throughout that period, as post-divorce skirmishes continued to flare (further complicating matters), I nonetheless took every project I could eke out of the woodwork, supplemented by debt.

Hello, bank bail-out? How about a few bucks for those of us who foot the bill in tax dollars?

The Borrowing Trap

Now and then, an acquaintance will make an off-hand remark about those who borrow money or live on credit cards. The assumption is that credit purchases are frivolous, or that the person who racks up consumer debt does so out of irresponsibility and poor judgment.

Never assume. Yours truly? I borrowed to put food on the table. I borrowed to pay for school supplies for my kids. I borrowed to enable them to take advantage of academic opportunities that they earned through their own hard work. I also counted my blessings. While I had no family to assist, my kids were healthy and doing well, I was basically healthy despite chronic pain, and I was able to use credit. Borrowing is a double-edged sword of course, especially if it continues for an extended period. But for my little household, debt was the only path to survival. For all I know, it will be again.

Fighting Your Way Back

These days? I still live on a tight budget, I dream of recovering from the years of financial devastation "someday," and I take every gig I can get. Willingly. I've gained new skills along the way and continue to refine them, I'm always looking for another project and thrilled when I nab one, and I'm accustomed to a 12- to 14-hour workday. I put in long hours throughout my corporate career and I have no problem doing so now. In fact, I'm grateful for these workdays and I take none of them for granted. Moreover, I suggest that few of us should take our sources of income as a given.

You know the expression - "There but for the grace of God go I." Misfortune can visit any one of us. Layoff. Accident or illness. Gray divorce. The phone call or email with no warning, saying "you're done" as you're replaced by someone 20 years younger.

And yes, I've internalized the wisdom of this little gem: "If opportunity doesn't knock, build a door." But I also know it isn't always possible, and the secret to success is not as simple as hard work. It's aided by the assistance of others, not to mention - luck.

Unemployed and Depressed

Forbes reminds us of the clear links between unemployment and depression, which isn't to say that underemployment or hating your job is a picnic.

Forbes staff writer Susan Adams cites a Gallup poll as follows:

The longer that Americans are unemployed, the more likely they are to report signs of poor psychological well-being," says the study. "About one in five Americans who have been unemployed for a year or more say they currently have or are being treated for depression - almost double the rate among those who have been unemployed for five weeks or less.

She goes on to note:

The long-term unemployed, unfortunately, have good reason to be depressed. They suffer plenty of discrimination in the job market. A 2012 study by economist Rand Ghayad found that employers preferred candidates with no relevant experience, but who had been out of work for less than six months, to those with experience who had been job hunting for longer than that.

.... ... ...

I'm certain that many of you have fought your way back; I'm still fighting after years, but I have seen progress. Slower than I'd like, but progress all the same.

If someone helped you out, have you paid it forward by making connections for others?

Please do read this comment from Cindy. I have responded as best I can. I'm sure she would welcome your suggestions.

A Note on Despair

To be in this position - wanting to work, needing to work, knowing you still have much to contribute but never getting a foot in the door - is deeply frustrating, horribly depressing, and leaves us feeling powerless. Add up these elements and you have the formula for despair.

It's brutally hard to fight your way back from despair. But sometimes, an act of compassion can help.

I've been on the receiving end of those incredible kindnesses - from strangers, from readers, and from one friend in particular, herself too long living on the edge.

One small act of compassion can breathe new hope into the worst situation. And here's what I know with 100% certainty. We may be unemployed, we may be depressed but we aren't powerless if we come together and try to help one another.

... ... ...

[Aug 30, 2019] Over 50 and unemployed: Don t panic!

Highly recommended!
Don't panic is always a good advice. Following it is another story...
Notable quotes:
"... Using contacts, no matter how far in the past they rest, is nothing to be ashamed of! You've probably spent most of your life working, and meeting a lot of people along the way. ..."
"... Your resume should be tailored to each and every job you apply for. While it is important to showcase your talent and skills, how you present the information is equally important. ..."
Jan 03, 2012 | Palmetto Workforce Connections

When you find yourself over 50 and unemployed, the thought of finding another job may seem daunting and hopeless.

It is quite easy to become discouraged because many people fear being stereotyped because of their age, the tough job market, or the prospect of being interviewed by someone half their age. However, there are some things the older unemployed should keep in mind while on the job search. Using the following tips will increase your chances of a short job search and create an overall more pleasant experience.

  1. Quit telling yourself that no one hires older workers. This is simply just not true. In some cases older workers have to exert more effort to overcome discrimination, but this is certainly not the case for every employer. There are even entire websites with jobs posted specifically for older workers, and a quick Google search will render you a list of those websites. Take advantage of such resources!
  2. Take advantage of new technology. Learn to blog and micro-blog, via Twitter, about your profession and interests. You should even create a LinkedIn profile (a website similar to Facebook yet has a more career oriented function) to assist it meeting people in your desired field. All of which will help you stay fine tuned on your skills, while developing new ones. Learning to use social networking will indicate to potential employers that you can adapt to change and learn new things, particularly technology, fairly quickly.
  3. Use all those hard earned contacts. Using contacts, no matter how far in the past they rest, is nothing to be ashamed of! You've probably spent most of your life working, and meeting a lot of people along the way. It is completely acceptable to reach out to former colleagues, class mates, co-workers and employers for job possibilities. Using resources like Facebook or LinkedIn are great ways to find those long lost contacts as well. Chances are they would love to hear from you and help you out if possible.
  4. Don't clutter your resume. Your resume should be tailored to each and every job you apply for. While it is important to showcase your talent and skills, how you present the information is equally important. This means keep it straight to the point and relate your past experience to the skills necessary for the job you are applying for. Essentially, don't do a history dump of every job you've ever had, instead, make each word count!
  5. Don't act superior to the interviewer. It is likely that the people interviewing you will be younger than you. But this does not mean you should look down upon them. Obviously they have earned their position, and if you play your cards right, in due time, you will earn yours! Even if you've worked more years than your interviewer has been alive, it's not okay to tell him or her that you can "teach" them anything. A better idea would be to state your experience working in a multi-generational work place.

Use these tips to help make your job search less stressful and more positive. Whatever you do, don't throw in the towel before you've even tried. Your experience and knowledge will be recognized. All you need is the right employer to identify it.

[Aug 29, 2019] Over 50 and out of work Program seeks to help long-term unemployed

This is essentially a scam. Help in landing $13 per hour job is not a big achievement.
Notable quotes:
"... Older workers like Lane make up a larger percentage of the persistently jobless than ever before. Nearly 40 percent of unemployed workers are over the age of 45 - a 30 percent rise from the 1980s. ..."
"... P2E is an intensive, individualized five-week bootcamp that teaches job skills and works to build job-seekers' confidence and emotional health. "We acknowledge that there are serious emotional issues for people who'd been unemployed for that long," Carbone said. ..."
"... The privately-funded program makes deals with businesses who hire P2E graduates for "internships," a few-week trial period for the would-be employee, whose salary is subsidized by the WorkPlace. Often, it leads to full-time work. According to P2E, 80 percent of their participants have been granted trial periods, and of those, more than 85 percent have been hired by employers. ..."
"... This acceptance of a new economic reality is at the heart of P2E; the program isn't solving the problems of precarity, real-wage decline, or manufacturing losses so much as doing damage control. ..."
"... "I'd say 100 percent of the people who went through Platform are making less than they did previously," said Carbone. "We get them prepared for the fact that their standard of living will go down, that they probably have to change careers." ..."
Nov 16, 2013 | NBC News
When Bret Lane was laid off from his telecommunications sales job after 16 years, he wasn't worried. He'd never been unemployed for more than a few days since he started working as a teenager. But months passed, and he couldn't find a job. One day, he heard the Purina plant in his Turlock, Calif., neighborhood was hiring janitors for $14 an hour. When he arrived early at 4 a.m., he counted more than 400 people lined up to interview.

"That's when I realized things had gotten serious," said Lane, 53, who called being out of work "pure hell."

Lane's experience is hardly unique. As of September 2013, 4 million people had been unemployed for six months or more. The economy has been slow to regain the 8.7 million jobs lost during the Great Recession, making prospects grim for many of the long-term unemployed.

Older workers like Lane make up a larger percentage of the persistently jobless than ever before. Nearly 40 percent of unemployed workers are over the age of 45 - a 30 percent rise from the 1980s. And for this group, the job hunt can be particularly long and frustrating. Unemployed people aged 45-54 were jobless for 45 weeks on average, and those 55 to 64 were jobless for 57 weeks, according to an October 2013 Associated Press-NORC Center for Public Affairs Research poll.

Younger workers didn't have such a hard time, perhaps because many employers perceive them to be more energetic or productive than older workers, said Linda Barrington, an economist at Cornell University's Institute for Compensation Studies. Employers "acting on such inaccurate assessments or stereotypes is what benefits younger workers and disadvantages older workers," she said.

Addressing the emotional side of unemployment

An innovative program based in Bridgeport, Conn., is helping to get those who are over 50 and unemployed for long periods back into the market. Platform to Employment started in 2011 when a Connecticut job center called the WorkPlace was overwhelmed by calls from "99ers"-people who had been unemployed for 99 weeks, exhausting their unemployment benefits-many of whom were older workers.

The exact number of 99ers across the country is unknown; the Bureau of Labor Statistics hasn't distinguished between 99ers and those out of work for a year since 2010, an oversight that some say renders this group even more politically invisible. Already, the long-term unemployed face biases in hiring. It's both legal and common for employers to write "unemployed need not apply" on job postings.

There has been virtually no public policy tackling long-term unemployment since the recession hit, said P2E founder Joe Carbone, and his program seeks to fill that gap. "These people have lost access to opportunity, which is a basic American tenet," said Carbone. "We find a way to make them competitive and feel hopeful."

P2E is an intensive, individualized five-week bootcamp that teaches job skills and works to build job-seekers' confidence and emotional health. "We acknowledge that there are serious emotional issues for people who'd been unemployed for that long," Carbone said.

The privately-funded program makes deals with businesses who hire P2E graduates for "internships," a few-week trial period for the would-be employee, whose salary is subsidized by the WorkPlace. Often, it leads to full-time work. According to P2E, 80 percent of their participants have been granted trial periods, and of those, more than 85 percent have been hired by employers.

Accepting a new economic reality

Bret Lane washes out his coffee pot at his home after a shift at a call center in San Diego, Calif., on Oct. 31. Lane was laid off after 16 years as a salesman in telecommunications and was unemployed until he got a job at a call center. Sandy Huffaker / Getty Images for NBC News

The program has spread to 10 other cities across the United States, including San Diego, where Lane, a P2E graduate, has been employed full-time at a call center since May. After a year and nine months of unemployment, Lane sold his two-bedroom house, pared down his possessions to fit in a 5x10 storage unit, and drove to San Diego to live with his sister. That's when he saw an ad in the paper for Platform to Employment.

He learned how to make his online resume more searchable by adding keywords, as well as how to create an impressive LinkedIn profile. "It also occurred to me that I was being discriminated against" because of age, rather than being rejected for not being good enough. Lane now makes about half of his previous salary and still lives with his sister, but he's "happy to be working again."

This acceptance of a new economic reality is at the heart of P2E; the program isn't solving the problems of precarity, real-wage decline, or manufacturing losses so much as doing damage control.

"I'd say 100 percent of the people who went through Platform are making less than they did previously," said Carbone. "We get them prepared for the fact that their standard of living will go down, that they probably have to change careers."

This guidance is necessary, Barrington said. "A lot of [the long-term unemployed] came into the workforce still thinking you could work for the same company for your whole life," she said. "Someone has to sit you down and tell you that's not going to happen."

She added that businesses need to be reminded of the value of older workers, who often bring intangible skills, such as punctuality, responsibility, and "being able to write a memo," that younger employees may not yet have.

Heidi DeWyngaert, President of Bankwell, a holding company of several banks in Connecticut, said one of her banks hired an older worker from P2E who is succeeding on the job precisely for these reasons. "She's mature, reliable and responsible with a great attitude," said DeWyngaert.

The program has gained so much prominence that it's become competitive in its own right. Early last year, after P2E was featured on 60 Minutes, the Bridgeport office was flooded with inquiries. The program routinely gets 1,000 applicants for around 20 spots.

Hoping to spark a national conversation

Vanessa Jackson, 57, saw the segment and kept track of P2E's growth until it expanded to her area in Chicago. Jackson had been unemployed off and on since 2008, when she lost her $100,000 job as a marketing manager during a corporate downsizing. "I thought, of course, I would get another comparable job," she said.

But it didn't happen. She decided to get an MBA to "ride out the recession," but that just landed her more debt. She finally got a part-time job as a deli clerk, until she broke her arm and went on disability for 10 months. Her $300,000 401(k) account dwindled to $60,000. She sold her house in the suburbs and moved in with her boyfriend on the South Side of Chicago.

"It was the most desperate thing in the world," Jackson said. It pained her to remember the days when recruiters would tell her she was one of "the top African-American women in marketing."

P2E "revived my energy," she said. "It lifted the depression that was very much there."

Jackson now works part-time as a project coordinator at a home care service agency for $13 an hour, which she admits is inadequate for her level of education. Still, she almost missed out on the opportunity. When P2E came to Chicago earlier this year, she wasn't selected at first. "It felt like applying for a job in itself," she said. "I beseeched [Chicago program manager Michael Morgan]. He said 'I admire your ambition' and let me in."

Carbone is all too aware of P2E's limited reach. "We've helped hundreds of people, but that doesn't put even a small dent in the amount who need help," he said. Carbone hopes to spark a national conversation and, eventually, get the attention of Washington.

"Let's be clear," Carbone said. "I wouldn't be doing this if there were appropriate and relevant government policies."

[Aug 28, 2019] My Top 5 Movies About Unemployment

Apr 30, 2016 | Christianity Today
Erin Brockovich

2000 | Rated R
directed by Steven Soderbergh
Based on the true story of an unemployed mother of three who forced her way into a job as a legal clerk and built an anti-pollution case against a California utility company. Erin Brockovich has become a name for someone with tenacity and perseverance.

The Journey of Natty Gann

1985 | Rated PG
directed by Jeremy Kagan
Disney's family-friendly adventure demonstrates how tough the Great Depression was on kids, namely the teenage girl of the title who journeys across America to reunite with her father. Grounded by strong performances, including a young John Cusack, this gem serves as a fine introduction of a difficult subject to younger viewers.

Tootsie

1982 | Rated PG
directed by Sydney Pollack
This light-hearted, quirky comedy stars Dustin Hoffman as an unemployed actor who pretends to be a woman for a full-time role in a soap opera. Beneath the hilarity is a sobering reminder that landing a job sometimes requires thinking outside the box, to say the least.

Up in the Air

2009 | Rated R
directed by Jason Reitman
George Clooney is stellar as a veteran hatchet man who has lost his ability to form meaningful relationships, living a life on the road. Ultimately this is a poignant drama about identity and what defines us. If we are nothing more than our occupation, what remains when that is gone?

Russ Breimeier, a freelance film critic who lives in Indianapolis, was unemployed for two years until recently landing a part-time job.

[Aug 28, 2019] What do you call a 50 year old engineer?

Mar 03, 2016 | www.nakedcapitalism.com

Synoia , March 3, 2016 at 10:25 am

Q: What do you call a 50 year old engineer?

A: Unemployed.

[Aug 27, 2019] The Death of the Professional: Are Doctors, Lawyers and Accountants Becoming Obsolete

Probably not. But the quantities necessary might diminish considerably...
Notable quotes:
"... Adapted from the new book The Future of the Professions by Richard Susskind & Daniel Susskind (Oxford University Press, 2015).Originally published at Alternet ..."
"... The proof is in how there is one premium cost if the medical provider is on their own and magically it is cheaper if theu are part of a group or hospital.. Same doctor same practices lower rates prima facia evidence of insurance company rate fraud ..."
"... Re solidarity, you might be surprised. One reason law school enrollments are down is that it is becoming public knowledge that employment for graduates in upwardly mobile career positions is way down ..."
"... Many are shunted into low level proletarian type legal work, churning out evidence for use in lawsuits owned and managed by large firms. Lawyers who do this earn less then a good paralegal with less job security and no benefits. ..."
"... So much of the 'grunt work' of professions – once the entry and training province of new graduates – is now being done overseas by shops that specialize in legal research, or reading x-rays, or accounting and tax preparation. ..."
"... The 'grunt work' that grounds one in the full knowledge of the profession and how it works is slowly removed from the profession. That omission leaves future practitioners with an incomplete understanding. ..."
"... This loss makes them more reliant on big data as both assistant and excuse/defense, and makes them less master craftsmen (if I may use the term without giving offense) and more the front-end interface of one-size-fits-all processes. Very good for corporate profits. Not so good for the professions or their clients. ..."
"... Long ago, firms started off-shoring basic, tedious, repetitive tasks, generally considered as unrewarding, such as software testing or error correction to India. The idea was to focus on "high added-value" jobs such as system architects or project management, and leave low-level operations, supposedly requiring less qualifications, to cheaper Indian contractors. Decades later, there is a shortage of qualified people for those high-skilled jobs - precisely because fewer and fewer young people have had the possibility ..."
"... The result? It is now necessary to import expensive project managers and system architects from foreign countries. ..."
"... Bottom line: the race to the bottom for wages is "on". ..."
"... Professionals would be the next logical choice of squeezing cost out of work; unions, middle management, big industry, airlines, manufacturing and construction have all paid their price at the alter of the 1%. ..."
"... I also agree with the concept of there being less for the bottom 90% to spend. And as more automation kicks in, there will be even less bad choice jobs for these folks to scramble for. Just waiting for truck drivers to be slowly replaced with auto-drive trucks. ..."
"... " . Prefer a fence at the top of the cliff to an ambulance at the bottom " ..."
"... The rich and the truly rich will always have skilled, artistic human professionals to serve their personally tailored bespoke needs. It is the rest of us who will be assigned the doctorobots, the lawyer machines, etc. ..."
"... Part of the "crapification of everything" except for managers and owners, it is part of their cost cutting plan. ..."
"... First they came for the blue collar workers, and I did nothing? Then they came for the white collar workers, and I did nothing? Now they are coming for the professionals, and they are laughing at my passivity? ..."
"... They have played all the classes, higher than the one they are currently discarding, and the remaining consumers are happy to throw their neighbors under the bus. But your turn will come. Karma. ..."
"... Once corporations start setting guidelines and dictating the drugs you can and can't use for treatment, do you think they'll do it according to what's cost effective and least risky for the patient based on current science or do you think they'll do it based on their own profits? ..."
"... The shift from reactive to proactive ..."
"... Proactive cannibalism ..."
Jan 09, 2016 | www.nakedcapitalism.com
Posted on January 9, 2016 by Yves Smith Yves here. Many members of the top 10% regard their role in society as relatively secure, particularly if the are in a niche that serves the capital-deploying 1% or better yet, 0.1%. But a new book suggest their position is not secure. And trends in motion confirm this dour reading, such as the marked decline in law school enrollments, and the trend in the US to force doctors to practice out of hospitals or HMOs, where they are salaried and are required to adhere to corporate care guidelines. For instance, my MD is about to have her practice bought out, and is looking hard as to whether she can establish a concierge practice. Mind you, she appears regularly on TV and writes a monthly column for a national magazine [not that is how I found her or why I use her]. Yet she has real doubts as to whether she can support all the overhead. If someone with a profile can't make a go at it solo in a market like Manhattan, pray tell, who can?

Adapted from the new book The Future of the Professions by Richard Susskind & Daniel Susskind (Oxford University Press, 2015).Originally published at Alternet

The end of the professional era is characterized by four trends: the move from bespoke service; the bypassing of traditional gatekeepers; a shift from a reactive to a proactive approach to professional work; and the more-for-less challenge.

The Move From Bespoke (Custom) Service

For centuries, much professional work has been handled in the manner of a craft. Individual experts and specialists-people who know more than others-have offered an essentially bespoke service ("bespoke" is British for "custom"). In the language of the tailor, their product has been "made-to-measure" rather than "off-the-peg." For each recipient the service has been disposable (used once only), handcrafted ordinarily by a solitary scribe or sole trusted adviser, often in the spirit of an artist who starts each project afresh with a blank canvas.

Our research strongly suggests that bespoke professional work in this vein looks set to fade from prominence, as other crafts (like tailoring and tallow chandlering) have done over the centuries. Significant elements of professional work are being routinized: in checklists, standard form materials, and in various sorts of systems, many of which are available online. Meanwhile, the work that remains for human beings to handle conventionally is often not conducted by individual craftspeople, but collaboratively in teams, sometimes collocated, but more often virtually. And, with the advance of increasingly capable machines, some work may not be conducted by human beings at all.

Just as we witnessed the "death of gentlemanly capitalism" in the banks in the 1980s, we seem to be observing a similar decline in bespoke professionalism.

The Bypassed Gatekeepers

In the past, when in need of expert guidance we turned to the professions. Their members knew things that others did not, and we drew on their knowledge and experience to solve our problems. Each profession acted as a "gatekeeper" of its own, distinct body of practical expertise. Today this set-up is under threat.

We are already seeing some work being wrested from the hands of traditional professions. Some of the competition is coming from within. We observe professionals from different professions doing each other's work. They even speak of "eating one another's lunch." Accountants and consultants, for example, are particularly effective at encroaching on the business of lawyers and actuaries. We also see intra-professional friction, when, for example, nurses take on work that used to be exclusive to doctors, or paralegals are engaged to perform tasks that formerly were the province of lawyers.

But the competition is also advancing from outside the traditional boundaries of the professions-from new people and different institutions. We see a recurring need to draw on people with very different skills, talents, and ways of working. Practicing doctors, priests, teachers, and auditors did not, for example, develop the software that supports the systems that we describe. Stepping forward instead are data scientists, process analysts, knowledge engineers, systems engineers, and many more. Today, professionals still provide much of the content, but in time they may find themselves down-staged by these new specialists. We also see a diverse set of institutions entering the fray-business process outsourcers, retail brands, Internet companies, major software and service vendors, to name a few. What these providers have in common is that they look nothing like twentieth-century doctors, accountants, architects, and the rest.

More than this, human experts in the professions are no longer the only source of practical expertise. There are illustrations of practical expertise being made available by recipients of professional work-in effect, sidestepping the gatekeepers. On various platforms, typically online, people share their past experience and help others to resolve similar problems. These "communities of experience," as we call them, are springing up across many professions (for example, PatientsLikeMe and the WebMD communities in medicine). We say more about them in a moment. More radical still are systems and machines that themselves generate practical expertise. These are underpinned by a variety of advanced techniques, such as Big Data and artificial intelligence. These platforms and systems tend not to be owned and run by the traditional professions. Whether those who do so will in turn become "new gatekeepers" is a subject of some concern.

The keys to the kingdom are changing. Or, if not changing, they are at least being shared with others.

Jim Haygood ,, January 9, 2016 at 8:57 pm

'medium and large corporations are also struggling to deal with increasing regulation'

My claim is that large corporations don't "struggle to deal with" regulation - they write it.

Case in point, Obamacare was drafted by Liz Fowler, formerly of WellPoint.

alex morfesis , January 10, 2016 at 12:05 am

You nailed it on medical professionals would like to add, that at least here in flori duh there seems to be massive pricing fraud by malpractice and liability insurance providers which state regulators allow to continue to force small or single practitioners to join groups by financial obliteration at least in floriduh, there is the usual massive distortion suggesting insurance companies are paying out huge amounts when there in fact seems to be collusion amongst insurance companies neglecting the legal requirement to try to settle on good faith and end up forcing people to settle for pennies on the dollar yet the insurance companies keep picking the pockets of medical professionals

The proof is in how there is one premium cost if the medical provider is on their own and magically it is cheaper if theu are part of a group or hospital.. Same doctor same practices lower rates prima facia evidence of insurance company rate fraud

jrs , January 9, 2016 at 3:49 pm

Yes some of it is only logical though, if masses of the population see their income declining and yet the costs of medical care keeps increasing eventually noone can afford to see the doctor never mind the ACA etc.. And it can get to be this way with a lot of professional services less urgent and distorted than medical care, like soon noone can afford an accountant, you use turbo tax, a lawyer – no middle class people start to make their own wills. Many professions seek ever further protections of government for their guilds (more and more requirements to practice to try to preserve their privilege) and yet with nothing protecting the income of the other 80% (read: unions, that would be their role) unless they plan to only serve the fellow 20%

So solidarity? Yea, but making the solidarity argument with many (not all) members of such professions is a waste of time as they instinctively side with the 1s.

Local to Oakland , January 9, 2016 at 4:13 pm

Re solidarity, you might be surprised. One reason law school enrollments are down is that it is becoming public knowledge that employment for graduates in upwardly mobile career positions is way down

Many are shunted into low level proletarian type legal work, churning out evidence for use in lawsuits owned and managed by large firms. Lawyers who do this earn less then a good paralegal with less job security and no benefits.

ilporcupine , January 9, 2016 at 4:33 pm

It has been said Paralegals are being squeezed out, to make way for the huge increase in law graduates from prior class booms. Why not use cheap lawyers, with better credential, and desperate for employment?

flora , January 9, 2016 at 5:39 pm

So much of the 'grunt work' of professions – once the entry and training province of new graduates – is now being done overseas by shops that specialize in legal research, or reading x-rays, or accounting and tax preparation.

There are 3 downsides to this, in my opinion. New college grads have fewer entry slots. The 'grunt work' that grounds one in the full knowledge of the profession and how it works is slowly removed from the profession. That omission leaves future practitioners with an incomplete understanding.

This loss makes them more reliant on big data as both assistant and excuse/defense, and makes them less master craftsmen (if I may use the term without giving offense) and more the front-end interface of one-size-fits-all processes. Very good for corporate profits. Not so good for the professions or their clients.

guest , January 9, 2016 at 6:25 pm

Big Data is not a solution.

Your first two points (no entry-level jobs for beginners, no acquisition of professional basics) are essential - and their detrimental effects are already painfully felt in some professions.

Case in point: software development.

Long ago, firms started off-shoring basic, tedious, repetitive tasks, generally considered as unrewarding, such as software testing or error correction to India. The idea was to focus on "high added-value" jobs such as system architects or project management, and leave low-level operations, supposedly requiring less qualifications, to cheaper Indian contractors. Decades later, there is a shortage of qualified people for those high-skilled jobs - precisely because fewer and fewer young people have had the possibility to

(a) start in the profession at entry-level positions (when job postings all require qualifications as senior software engineer and five years experience, what do you do?)

(b) learn the ropes and practice the skills from the ground up (the necessary step before rising in the professional hierarchy).

The result? It is now necessary to import expensive project managers and system architects from foreign countries.

From what I read, the UK has been especially hit by this phenomenon, because it was particularly enthusiastic about off-shoring IT to India.

polecat , January 9, 2016 at 8:18 pm

Uhm ..oh wait uh ..I know .uh Brondo's got what plants need ..right?

Phil , January 10, 2016 at 2:34 am

Attorney's work is being automated and outsourced. For more on one aspect of outsourcing:

http://www.nytimes.com/2010/08/05/business/global/05legal.html?_r=2

I can't find the cite, but last year I read that some of the Indian companies that American law firms have outsourced to are now moving offices "stateside" to hire American attorneys, here.

Bottom line: the race to the bottom for wages is "on". Add to this job automation that will only get more efficient, over time.
http://www.futuretech.ox.ac.uk/news-release-oxford-martin-school-study-shows-nearly-half-us-jobs-could-be-risk-computerisation

armchair , January 9, 2016 at 5:17 pm

The Washington State Bar has initiated a legal technician program , and I find the timing questionable, even if the premise of the program is good-hearted. As the market is awash in underemployed, licensed attorneys, the Bar is going ahead and turning veteran paralegals into the people to undercut the market even further. It seems like bad timing to let someone who has years of experience, and no law school debt get over on a bunch law school grads who are facing a life of being hounded for their debts. I spoke to someone at the Bar who made a good defense, that the legal technician is like an ARNP. Only later did it occur to me that there are very few out-of-work doctors.

From another perspective, the legal technician answers another problem of the collapsing paralegal market. Much of the collapse has been driven by advances in document management, especially scanning that 'reads' the text and makes it searchable. But hey, here is a shiny new program. Go ahead and set up a parenting plan with your abusive ex for $75! What could go wrong?

The key to really get the legal field de-humanized would be robot judges and robotic juries. I hope someone is already working on it.

polecat , January 9, 2016 at 8:26 pm

Don't worry what's old is new again. At some point in the future we'll all be scratching glyphs on clay tablets .once the 2nd law of thermodynamics really kicks in ..plenty of work then!

armchair , January 9, 2016 at 9:02 pm

Work! What about George Jetson? The go west value system we are stuck with these days is almost perfectly incompatible with a future that requires very little human labor.

MyWag , January 9, 2016 at 5:33 pm

Professionals would be the next logical choice of squeezing cost out of work; unions, middle management, big industry, airlines, manufacturing and construction have all paid their price at the alter of the 1%.

Public sector unions are hanging on but as the majority of local & state taxpayers have less to give, these wages, benefits and especially pensions will be cut. Those earning less and less will gleefully pull down those public employees who are 'living like kings'.

I also agree with the concept of there being less for the bottom 90% to spend. And as more automation kicks in, there will be even less bad choice jobs for these folks to scramble for. Just waiting for truck drivers to be slowly replaced with auto-drive trucks.

This leads us to an enhanced confrontation at the Federal level on how to go forward. The earned income tax credit, a good concept also under siege, I believe, will have to be supplemented with a minimum guaranteed income.

By this time, 20 years, the DEMs will be the party of business and the GOP will be entirely dependent on fed govt subsidies. Oh the irony.

Brooklin Bridge , January 10, 2016 at 12:00 pm

By this time 20 years, the GOP will be saying, "I told you so", regarding Global Warming.

Ptup , January 9, 2016 at 6:12 pm

Reading Rise of a The Robots right now, and the law and accounting profession have and will continue to be hurt hard by computers armed with big data, and the education and medical profession are next. Has to be. It's already a travesty that education and medical costs continue to rise as incomes stagnate and drop, and that just cannot continue. Well, maybe it can, until all of those guns out there are used by the people as they rise up. Look at the buffoon who many are considering for the Republican nominee, more out of blind, misinformed anger, than anything. Scary.

RBHoughton , January 9, 2016 at 7:31 pm

" . Prefer a fence at the top of the cliff to an ambulance at the bottom "

You have a delightful way with words Yves. Many thanks.

different clue , January 9, 2016 at 9:19 pm

The rich and the truly rich will always have skilled, artistic human professionals to serve their personally tailored bespoke needs. It is the rest of us who will be assigned the doctorobots, the lawyer machines, etc.

James Koss , January 10, 2016 at 11:13 am

The French phrase "Everything changes and remains the same" remains true today.

Whereas today the top of society has its professionals to isolate and protect them from the remainder of the population and the rules nobility and the church had its knights, nobles, obedient serfs and peasants to fight and protect "their" nobility. Names and titles changed but the rules remained. Those who have will get those who don't will not.

Inverness , January 10, 2016 at 11:29 am

Correct. The same applies in education. The wealthy know what kinds of schools serve their children best: those with better teacher to student ratios, rich arts curricula, and a progressive approach to instruction. Just see what Obama's kids got at their fancy Quaker school. The rest get standardized lesson plans, big class sizes, deep cuts in music and the arts, and high-stakes testing.

They can privatize their lives; we cannot.

Disturbed Voter , January 9, 2016 at 10:42 pm

Part of the "crapification of everything" except for managers and owners, it is part of their cost cutting plan.

Why would you trust a medical system run by politicians and insurance companies a system promoted by those same managers and owners. Like hiring the Three Stooges as your plumber, electrician and roofer. Gullibility will be the death of us that and malice.

First they came for the blue collar workers, and I did nothing? Then they came for the white collar workers, and I did nothing? Now they are coming for the professionals, and they are laughing at my passivity?

They have played all the classes, higher than the one they are currently discarding, and the remaining consumers are happy to throw their neighbors under the bus. But your turn will come. Karma.

flora , January 10, 2016 at 2:19 am

In Oregon some doctors are unionizing to resist medical assembly line medicine.
From NYTimes:

Doctors Unionize to Resist the Medical Machine

"Dr. Alexander and his colleagues say they are in favor of efficiency gains. It's the particular way the hospital has interpreted this mandate that has left them feeling demoralized. If you talk to them for long enough, you get the distinct feeling it is not just their jobs that hang in the balance, but the loss of something much less tangible - the ability of doctors everywhere to exercise their professional judgment."

http://www.nytimes.com/2016/01/10/business/doctors-unionize-to-resist-the-medical-machine.html?hp&action=click&pgtype=Homepage&clickSource=story-heading&module=second-column-region&region=top-news&WT.nav=top-news&_r=0

digi_owl , January 10, 2016 at 4:12 am

I find myself thinking about an episode of the original Connections series, that was produced in the 70s.

There it was mused about how corporate management would idle their days away waiting for the computer in the basement to crunch the numbers and come up with company decisions they were then to implement.

Instead what happened was that the professional managerial class, the MBAs, dug in while computers instead replaced the laborers via robotics.

Jesper , January 10, 2016 at 6:55 am

Or shorter: The common argument that 'we (by that I mean you) have to become more employable' is about to hit home among the people with long education. Will they recognize the similarity to what has already happened to others and/or will they themselves make themselves more 'employable'?

financial matters , January 10, 2016 at 8:11 am

I think one of the major consequences we are seeing as a result of a misguided professional system is the lack of basic legal services for millions of people. This resulted in people being thrown out of their homes as the result of very obvious fraud and yet having no recourse unless they were able to spend hundreds of thousands of dollars on legal fees.

I think the popular new series 'Making of a Murderer' emphasizes this problem. I don't think a show that emphasizes the problems that the very poor have with justice from the lack of being able to pay for legal services would have been this popular 10 years ago.

financial matters , January 10, 2016 at 8:17 am

I think this would require a 'single payer' legal system similar to the need for a single payer medical system.

Wade Riddick , January 10, 2016 at 8:53 am

Once corporations start setting guidelines and dictating the drugs you can and can't use for treatment, do you think they'll do it according to what's cost effective and least risky for the patient based on current science or do you think they'll do it based on their own profits?

What happens when they own their own pharmacies – as they're all scrambling to do right now – and try to jack up reimbursement through that unit too? Do you think patients were served when Philidor started (criminally) altering scripts and making substitutions?

For profit healthcare is really sickcare, isn't it? Why cure a disease when treating it brings in more revenue? Why sell cheap human insulin when you can patent a variety on the molecule, jack up the price and carve up the market?

Keep the sucker paying the vig

These guys aren't adopting better guidelines for treating chronic disease based on the best available science. In fact, as they corporatize they're getting worse. I've talked to these clowns. They're typically ten years behind the state of the art in their field. Patients do the reading and then they stare at us like we're morons. Fifteen years later they swear they knew the truth all along.

If these corporate suits are setting the guidelines for care, how come there's no common national board standard for care, no portfolio investment model approach where they model the disease with the best available experts, determine how to intervene in the various genetic pathways that are perturbed and then pick the simplest, cheapest methods/chemicals to try first?

That sounds like a pretty reasonable, scientific approach to treatment – but, if that's your standard, then these people are in breech of fiduciary duty left and right and it all has to do with that old canard "maximizing shareholder value." What about maximizing customer service? Corporate medicine will lead to tobacco-level deaths. I know doctors who have been personally injured in this system already. Corporations want to avoid risk to their profit – *not* their patient. Imagine what *those* mandatory arbitration clauses are going to look like. Imagine what the sequel to _Merchants of Doubt_ will look like in the era of corporate medicine and Supreme Court decisions that bust doctors' unions.

I'm still burning from Peter Thiel's comments on monopolies in the New York Times this morning. Does he have any clue how bad the service is in regional hospital cartels already and how fast prices are rising?

It's not even a matter of price in the drug markets now. It's basic availability. Aside from the persistent shortages of cheap, effective generics due to the kickback scheme in PMOs/PBMs, we now have explicit regulatory interference. The FDA has been moving to withdraw entire lines of medication from compounding pharmacies even when there's no rival big pharma product competing against them or any indication of patient risk. These are decades-old treatments. (It's the CDC's job to set treatment guidelines, by the way, not the FDA's).

It's just a knee-jerk reaction at this point to protect imaginary future profits, I suppose. You can't make up this stuff. The FDA has even imposed a 30% sales volume rule for "safety." It has nothing to do with purity or contamination of compounded products. If Tesla sold exploding cars, how would restricting 30% of their sales volume to California improve consumer safety? It's clearly a market-rigging reg – and it's because the corporate medicine lobby wants it.

What does this have to do with corporate medicine? Compounding pharmacies in big chain hospitals – which are often pitifully narrow in their professional scope – are all magically exempt (oligopolistic and more expensive too). Isn't that wonderful?

The current corporatization of medicine rests on the notion that the chief challenge faced by those of us with serious illnesses is that we simply don't read enough fine print or fill out enough paperwork.

If you think that corporations have done a fine job handling your retirement investments in this era of lax accounting standards, wait until you see what they do with your actual body.

Brooklin Bridge , January 10, 2016 at 1:00 pm

Exceptional comment!

Brooklin Bridge , January 10, 2016 at 12:18 pm

This article is based on the faulty perception that this is all normal benign efficiency working it's way out of an antiquated system, perhaps with a few -to be expected- hiccups. It isn't.

What we are experiencing is wholesale greed and corruption on an international scale working it's way into the core of our civilization like mold or cancer, and perverting technology as well as the process of social change and adjustment to that change – for it's exclusive benefit – as it goes. It is unconscionable that we could call this progress or adjustment in anything but the most cruelly ironic sense.

The shift from reactive to proactive my foot! 60 years ago doctors were getting out proactive messages far better than today via education, television, the media and so on. And they gave a damn!!! Today, insurance companies are devising ever new ways to minimize what they spend on your care, maximize what they charge you for it, and call it, "proactive." Proactive theft, or genocide for fun and profit, would be closer to the mark.

Brooklin Bridge , January 10, 2016 at 12:26 pm

Proactive cannibalism also comes to mind

[Aug 26, 2019] Overshoot The Ecological Basis of Revolutionary Change

Secular stagnation of the US economy might be parcially driven by high (above $50 per barrel) oil prices. That nessesarity generates high level of unemployment, especially chromic unemployment and "perma-temps".
Apr 08, 2005 | www.amazon.com

Amazon.com

By J. Mann on April 8, 2005

Masterpiece, offers solution for THE problem of our time/div> I am astonished at the quality of this book, which is about the eighth book in a personal reading program that included Paul Roberts' The End of Oil, Kenneth Deffeyes' Beyond Oil, Jared Diamon's Collapse, Cottrell's Energy and Society, Michael Klare's Blood and Oil, and others, all extremely good and relevant books.

The task this author undertakes is to help readers find a new perspective from which to constructively and usefully interpret inevitable and major changes the world around us. By taking this approach, the author is providing the very essential tool we need to cope with these changes.

The issue is our ecological footprint.

Catton uses the term "Age of Exuberance" to represent the time since 1492 when first a newly discovered hemisphere and then the invention of fossil-fuel-driven machines allowed Old-World humans to escape the constraints imposed by a population roughly at earth's carrying capacity, and instead to grow (and philosophize and emote) expansively.

He then reminds us that we are soon to be squeezed by the twin jaws of excessive population and exhausted resources, as our current population is utterly dependent on the mining and burning of fossil energy and its use to exploit earth's resources in general.

In spring 2005, the buzz about "the end of cheap energy" is reaching quite a pitch, and when and if the "peak oil" scenario (or other environmental limit-event) is reached, the impact on our social / political world will be enormous. Already the US is brandishing and using its superior weaponry to sieze control of oil assets; this same kind of desperate struggle may well erupt at all levels of society if we don't find a way to identify the problem, anticipate its consequences, and find solutions.

Catton offers a perspective based on biology / ecology -- not bad, since we are indeed animals in an ecology and we are indeed subject to the iron laws of nature and physics.

With this perspective we can avoid ending up screaming nonsense at each other when changes begin to get scary. My urgent recommendation is, read this G.D. book and do it now.

[Aug 25, 2019] Chronic unemployment should not >lead to despair. It is now a new normal. I recommend Stoicism , which is the way Greeks and Romans coped with their own decline

Notable quotes:
"... It has to be explained that Stoics believe that nothing external to the individual is secure, and thus the truly important thing is virtue, based on ethics and moral. ..."
"... Stoicism is the appropriate philosophy for what awaits us. It brings out the best of us and it eases the anguish. The illusion of control is our worst enemy. Matters are completely out of our control and Nature will deal with them as she pleases. ..."
Jan 09, 2016 | peakoilbarrel.com
Javier , 01/09/2016 at 5:29 am

I wholeheartedly agree that even a cursory look at things reveals the overwhelming scope of things and quickly leads to despair.

It doesn't have to lead to despair. I recommend Stoicism , which is the way Greeks and Romans coped with their own decline.

In the words of Seneca:

"Let Nature deal with matter, which is her own, as she pleases; let us be cheerful and brave in the face of everything, reflecting that it is nothing of our own that perishes." (De Provid. v.8)

It has to be explained that Stoics believe that nothing external to the individual is secure, and thus the truly important thing is virtue, based on ethics and moral. Virtue can not be taken from an individual whatever the circumstances, and helps him deal with adversity. That is what Seneca means with "nothing of our own that perishes" .

Stoicism is the appropriate philosophy for what awaits us. It brings out the best of us and it eases the anguish. The illusion of control is our worst enemy. Matters are completely out of our control and Nature will deal with them as she pleases.

[Aug 23, 2019] Nobody here wants to hire an over 60 IT worker

Notable quotes:
"... I am lucky in that I lived very frugally my whole life as I have always feared what was coming, and what in my opinion has now come. I am retired, and have been for over 4 years, but not by choice. ..."
"... For me, the misery index is High. I am lucky that I am not in danger of homelessness, but I have to be very careful about what I spend as prices keep going up and up and most things I consume. Meaning, food, utilities, taxes, etc. These days food doesn't go up by cents, but rather usually a dollar at a time. Carrots at my local Costco just went from $6.99 to $7.99 for example. ..."
"... I think that for everyone but the top 10%, the Misery Index is High ..."
Aug 23, 2019 | www.nakedcapitalism.com

BoulderMike , , August 23, 2019 at 4:19 pm

From just outside Boulder, CO: John Edwards said "there are two Americas". I am thinking he was more than correct, but that it should be 4 Americas: the top ,1%, the rest of the top 10%, the people who were prudent and saved and are older who are suffering but still can afford to live, and the truly poor who can't come up with $400 in an emergency, which would include the homeless. I am lucky in that I lived very frugally my whole life as I have always feared what was coming, and what in my opinion has now come. I am retired, and have been for over 4 years, but not by choice. Nobody here wants to hire an over 60 IT worker.

I measure the "economy" and the it's health by what I refer to as the "misery index". It isn't measured in numbers but rather in how one feels about their life and the world around them. For me, the misery index is High. I am lucky that I am not in danger of homelessness, but I have to be very careful about what I spend as prices keep going up and up and most things I consume. Meaning, food, utilities, taxes, etc. These days food doesn't go up by cents, but rather usually a dollar at a time. Carrots at my local Costco just went from $6.99 to $7.99 for example.

I think that for everyone but the top 10%, the Misery Index is High . But, around here, it is I believe one of the more affluent areas of the country. People are buying up $1.5 million dollar houses like crazy, and tearing down $1 million dollar old houses to build new custom houses. Tesla's and Mercedes are everywhere. Google has taken over Boulder and the young Tech workers are numerous. My little town of about 10,000 people is building new homes on every square inch of available land. They are talking about another 500 new homes of close to a million dollars to well over a million dollars. Traffic is outrageous, and bad air pollution days seem to be more and more numerous these days.

So, "it was the best of times, it was the worst of times". Depends on who you are.

I think though that we are in the midst of a class war. The racial issues we are experiencing are to distract people and divide people. Divide people on race, divide people on age, divide people on ideology. No matter what, just divide people so while the common "man" is fighting each other, the rich plunder more and more.
Finally, from my perspective, as a student of history, especially Nazi Germany, and Russia under Stalin, I am more and more frightened each day by the acceptance of the Trump rhetoric. It is messianic and dangerous.

[Aug 23, 2019] There has always been a lot of poverty in the US

Notable quotes:
"... I actually walked out of a Popeyes chicken place last month over the treatment I received. I am usually extremely laid back concerning service, having done a lot of it over the years. Recently though, the service workers have become actively hostile, in several places. This low wage economy is finally having some deleterious effects on the society at large. ..."
"... Fricking BS neoliberal greed masquerading as public policy. ..."
"... The bigger problem is the multi dimensional conflict with China. If its rate of acceleration is not brought down a lot, it will do some real damage to businesses who clean up by exploiting cheap and efficient Chinese industry while selling widgets into wealthy western markets. All such businesses, could get hurt, real bad (and their Chinese counterparts too). Will this happen? I think there will be warning shots. Huawei being the elephant in the room. ..."
"... I thought the quote from Business Insider that dole queues have been replaced by low paid part-time work was insightful. In a few words it explains why poor life conditions for many people are invisible. They are working somewhere not hanging around at street corners. It also explains how the situation may be just bearable for those with the low paid jobs since they do earn some income. It also explains why they don't turn their difficult conditions into political demands for a better life. They don't have the time as they are too busy and tired just surviving. ..."
"... The low interest rates are needed for bigger stock buybacks to prop up the overinflated housing and stock markets. Float those fantasies of fake wealth. It's alll that's left of their dystopian dream ..."
"... One thing has been proven beyond denial and that is that neoliberalism doesn't work. Infusions of money are still going to the rich, connected people mostly for frivolous justifications. Recession and ecological devastation plague the rest of us. ..."
"... IMO the US economy is a house of cards. What is the US economy currently? In my view it is the FIRE (Finance, IT, Real Estate, and Energy) sector, Education, and Health Care. ..."
"... Many people are living large at the expense of education and healthcare and have a vested interest in maintaining the status quo. What happens when the bubble bursts?? Many small cities are going to be ghost towns. ..."
"... Anecdotally, where I live in central WA I know quite a few young people in their 30s and 20s who patch together various crummy jobs to make ends meet. None of them can afford a house and it's hard to see much of a future for them other than endless part-time, low paying jobs ..."
"... The county I live in has an official poverty rate of 14%, about 1 out of every 7 people, but I think the actual amount is higher. We have a lot of Mexican immigrant workers here who likely are not counted, and in any case the federal definition of poverty is not very realistic. Same applies to official inflation stats. I would say that things are mixed, but for many under 40 the future isn't bright. ..."
Aug 23, 2019 | www.nakedcapitalism.com

jrs, August 23, 2019 at 10:39 am

I think much is just stuff that was ever thus and not new, there has always been a lot of poverty in the U.S.. Now that poverty may be creeping more into the middle class more and so becomes more noticeable, and homelessness has grown some places, but there was always much poverty.

This economic system especially without even a measly safety net, will not ever eliminate poverty and share the wealth. And of course it's going to destroy life on earth pretty soon if it keeps going.

Local experience: people who have not had an easy time getting stable jobs or sometimes work at all even recently are getting some now. But there are still perfectly decent people that can't find work.

ambrit, August 23, 2019 at 8:34 am

Here in the North American Deep South, "things" are sliding slowly down that slippery slope. The "Street Signs" I see about me are signaling a growth in the population of the truly impoverished. People with their belongings carried about in backpacks are now a regular sight on our streets. Panhandlers abound on the street corners. So much so that the local City Council has just passed an ordinance practically outlawing the practice. One of the local salvage store outlets, of which we have four in this town now, representing three corporations, now has some regular parking lot and front door panhandlers. A store assistant manager told me that it was "too much of a hassle" to run the panhandlers off, so the store tolerates their presence.

One of these panhandlers has a shtick of opening the front door to the store for customers with his hand out, as if he was a legitimate doorman. Five years ago, such now common sights were unknown around here.

On the small business front, today is the last day for our friendly local small vitamin and health food shop. She has given up after thirteen years. She has said that the internet killed her business off. For the last two months she has been looking for work. With her business background, she has had no "legitimate" offers of employment to date.

Another person who worked at the store while going to the local college just graduated with a Business and Communications major and minor. A sharp person, he told me two weeks ago before he went home to Gulfport to live with his parents again, he will be taking his little brother's room since the little brother just joined the military, that all he has received in the way of job offers in six months of searching are "bulls -- t job" offers, and one decent possibility over in Dallas. Even that job offer was on a recurring one year contract schedule. He would be a 'job shopper.'

I generally look at the faces of the people I pass by in shops and on the street to judge the tenor of the times. I have seen precious few smiling faces recently. Even the retail food workers are now surly and brusque.

I actually walked out of a Popeyes chicken place last month over the treatment I received. I am usually extremely laid back concerning service, having done a lot of it over the years. Recently though, the service workers have become actively hostile, in several places. This low wage economy is finally having some deleterious effects on the society at large.

Acacia, August 23, 2019 at 1:02 pm

FWIW, California cities have been working steadily on anti-homeless and anti-panhandling laws for years now. Some analysis here:

https://blogs.berkeley.edu/2018/10/18/business-improvement-districts-stop-punishing-the-homeless/

A primary vector of attack seems to be "Business Improvement Districts", i.e., the private control of formerly public spaces.

JBird4049, August 23, 2019 at 2:44 pm

What in the World is a "business improvement district?" And why does any California cities especially the large ones like L.A., San Diego, San Jose, or San Francisco? The smaller towns especially out in the peripheral Red areas could certainly use some economic help, but really housing is the single biggest problem state-wide with the possible exception of water, but that's only in long drought.

If people had dependable affordable housing, business would pick up.

Fricking BS neoliberal greed masquerading as public policy.

ptb, August 23, 2019 at 8:59 am

As another commenter said above, "fine" is a relative term. But I suppose this is in reference to this week's news-media theme of discussing recession fears. Thus the "fine" we are talking about means a combination of prices in stocks and real estate, and annual performance of big firms.

By that definition, the fears are a possibility, but just that. I mean the stock market is probably overvalued, but that isn't a crisis, and with the FED easing, what the heck they'll be overvalued more.

The bigger problem is the multi dimensional conflict with China. If its rate of acceleration is not brought down a lot, it will do some real damage to businesses who clean up by exploiting cheap and efficient Chinese industry while selling widgets into wealthy western markets. All such businesses, could get hurt, real bad (and their Chinese counterparts too). Will this happen? I think there will be warning shots. Huawei being the elephant in the room.

An even worse scenario for the rest of the world (but not the US) is if efforts to contain China succeed, and growth of Chinese industry is halted. The non-US world will have to pay significantly more for pretty much everything, and therefore economy will grow slower. Will this happen? I don't think so.

As far as locally in this reader's neck of the woods? I live in a locally wealthy college town, so kindof impossible to say from this vantage point, but I think things are actually going well. The place I work, a tiny scientific-industrial equipment maker in a very specialized niche, is looking at some of the bigger contracts we've had yet. My biggest fear in terms of external events is that we have an absolutely vital component supplier who is US-branded-made-in-China and a "dual-use" technology (we are the civilian use). That's a risk. There are Japanese-branded-Chinese alternatives but the US-branded-Chinese one is more advanced, I suspect due to patent protection, which should fortunately expire in a few years (reckoning based on how long it's been on the market).

a different chris, August 23, 2019 at 12:39 pm

>but I think things are actually going well.

Well duh. Your college has been suctioning money out of the pockets of kids for the last couple decades or so at a rate that is multiples of the general growth rate. Which means most (probably all) of the wealth you see around you is a shift from elsewhere, not a creation of such.

At best it is maybe repatriating some of the money going to Asia.

Heraclitus, August 23, 2019 at 9:15 am

I am also in the Deep South, but just barely. Our area is booming if you judge from the amount of construction taking place. However, there are loads more homeless people than there used to be, in a county that is hostile to them. It's easy to wind up doing thirty days in jail if you show up in the wrong place, at the wrong time, with no money. I employ a homeless guy to do yard work. He has plenty of skills and works for others too, so money isn't a problem, theoretically. However, he has found there are few rooms available where the homeowners do not have substance abuse problems. He's been through four since I've been employing him -- about nine months. He used to have a drinking problem, but no longer does, as far as I can tell. Life sobered him up. He has pointed out to me how many homes are unoccupied and falling down, and could be used to house people.

ambrit, August 23, 2019 at 9:38 am

We have a similar problem with "abandoned/unsafe buildings." The local response to this is to tear the buildings down. Salvable housing stock becomes empty lots, with the demolition bill sent to the last owner of record.

Rentals for the really poor are difficult at best. Very few rooming houses here. Most house rental contracts around here prohibit co-renters. The main exceptions are the college student rentals, and many of them have premium rents, essentially, gouging the out of towners.

Criminalizing poverty is an old and much honoured tradition.

Louis Fyne, August 23, 2019 at 10:04 am

The entire country sorely needs more rooming houses -- impossible nowadays, even in "liberal" towns, either because of land-construction prices or zoning or both.

William Hunter Duncan, August 23, 2019 at 9:29 am

Economists this time around seem to be oblivious to the "everything" bubble, be it the stock market, fracking, those darling tech companies worth billions having never made a profit, housing, student debt, debt generally

They seem mostly oblivious to structural pathologies, like the unchecked growth of monopoly, gross income inequality, unchecked automation, unchecked AI, resource constraints, ecological blowback, systemic pollution, eternal privatized warprofiteering.

This economy seems to me an epic disaster in the making. But I am a lowly manual laborer, so never mind me .

neo-realist, August 23, 2019 at 11:15 am

Another structural pathology I would add is the lack of low income housing for the working poor: In Seattle, and I'm sure this problem is replicated in other medium sized and bigger cities across the country, e.g., NYC, LA., A lot of SRO's and cheap apartments have been destroyed or bought up by developers and turned into expensive luxury apartments for high earning professionals. Much of the working poor ends up being stuck living in RV's and tents in business districts and residential neighborhoods, and under bridges, as well as shelters all over the city. The pathology extends to our citizens as well -- many believe they are nothing more than losers who didn't prepare themselves for better careers, takers, drug addicts, alcoholics, and criminals. Much of that fed by 40 years of corporate elite and media brainwashing: If you are poor in America, you deserve to die in the gutter; It's your fault.

Skip Intro, August 23, 2019 at 2:29 pm

I believe being oblivious is the main qualification for being a successful mainstream economist.

Mikerw0, August 23, 2019 at 9:48 am

As others have said, define good and define economy. We continue to stress "capital" doing well and ignore "labor". By that definition all is hunky dory until the pitchforks come out.

Don Cafferty, August 23, 2019 at 9:51 am

In southern New Brunswick, Canada the number of homeless has become a problem that municipal officials have not been able to ignore because of the attention that the public and advocates have brought to it especially during the past winter. In one municipality, a current news item suggests that the number of homeless has doubled during the past year. Aside from homelessness, it is difficult to measure the local economy because people who don't have money to spend are not visible.

Keith Newman, August 23, 2019 at 9:58 am

I thought the quote from Business Insider that dole queues have been replaced by low paid part-time work was insightful. In a few words it explains why poor life conditions for many people are invisible. They are working somewhere not hanging around at street corners. It also explains how the situation may be just bearable for those with the low paid jobs since they do earn some income. It also explains why they don't turn their difficult conditions into political demands for a better life. They don't have the time as they are too busy and tired just surviving.

tegnost, August 23, 2019 at 10:48 am

I think the dole queue's were replaced by food stamps. Still, plenty of people lined up at the food bank.

a different chris, August 23, 2019 at 12:53 pm

>It also explains why they don't turn their difficult conditions into political demands for a better life.

Yup. Thus the bourgeoisie drives all revolutions, not the poor.

cm, August 23, 2019 at 10:01 am

Food inflation hidden by reduced packaging size. Sugar, flour, coffee, ice cream all used to be sold by the pound. No more. 1% interest on savings accounts. Fed reducing interest rates.

Mike, August 23, 2019 at 10:04 am

Pennsylvania checking in. The growing divide in economic well-being is not as obvious in certain neighborhoods. While wealthy area of the state SEEM to be smiling, underneath is a growing debt to support such "lifestyle". Meanwhile, a household-by-household survey may be able to turn up factual evidence for this if only embarrassment could be avoided (snark, a little).

Poverty rates in formerly industrial areas are much higher, with depopulation occurring in central PA and those industrial suburbs of Philadelphia and Pittsburgh as well as cities like Erie, Harrisburg, Scranton, Wilkes-Barre, etc. (most of these small towns live by pension money from retirees, as young move away). Cannot forget the central issue of a "commonwealth" budgetary system that has not led to any such "commonwealth" since the dawn of the Industrial Age. You see many trucks and service vehicles not owned or leased by major businesses, but rather operated by individuals with craft ability working as day laborers and contracted whenever they can beat out the competition, which is fierce. Trucks, of course, are loaded with loan indebtedness, mouths at the nest are upturned and open

Banks are doing well -- of course, they loan and do business with pharmaceuticals, health providers, and out-of-state big actors with plenty of collateral or connections. Infrastructure erodes, public transportation is on its own and those few improvements where progressives have any influence are not income-related, thus leaving most with belief that Trump & cronies are fighting the fight against all this immiseration.

What a world. Pretty much as it is elsewhere, I reckon.

JCC, August 23, 2019 at 11:37 am

NY's Southern Tier along the PA Border is just as bad. Cities like Binghamton and Elmira are falling apart at the seams, and every year is a little worse than the previous year. There has been no "recovery".

rjs, August 23, 2019 at 10:39 am

a lot of fields around here didn't get planted because of the wet May/June. on the other hand, my trip to Middlefield (OH) revealed more than a dozen help wanted / 'now hiring' signs on a 2 mile stretch of RT 87 heading into town

Eclair, August 23, 2019 at 11:02 am

Here in Western New York, in beautiful Chautauqua County, stretching from the shores of Lake Erie to the Pennsylvania border, the statistics are woeful. Population is declining, both median age and median income are in the low 40's, and almost 20% of the population is under the poverty level. Unsurprisingly, the county ranks 59 (out of 62) in total 'health outcomes.' We have a lot of obesity, metabolic diseases, drug addiction and 'early deaths.'

At a meeting we attended this week, planning for an annual summer festival, the big 'problem' was diagnosed as the aging volunteer base. We have to hire people to do the heavy lifting of setting up, dismantling, etc., whereas 20 years ago the volunteers were young and hale enough to do it all. That, and only old people tend to come out for the festival.

However, the countryside is beautiful, at least in spring, summer and fall, with rolling hills, hundreds of acres of abandoned farmland that is 'reforesting,' and no traffic problems. No traffic, actually. You have to watch for deer and Amish buggies.

In the last few years, people have started 'fixing up' their houses. This spring I noticed a rash of new, big garages and outbuildings, for storing 'toys' such as ATV's, second and third trucks, monstrous riding lawn mowers. Others are adding on porches; front porches facing the street have become newly fashionable. Compared to 10 years ago, houses for sale seem to be selling. Or at least, the "For Sale" signs are coming down. Some wooded house lots, of several acres each, sold. They had been for sale for at least 5 years.

Downtown in the county's biggest city, Jamestown, the old brick buildings are still crumbling and boarded up. SRO's, better than tents, for sure, have filled the old hotels, and house people who would be homeless in Seattle. News releases touting the amazing success of the new National Comedy Center (heavily subsidized by State and local funds) are constant. There are more people about on Friday and Saturday evenings in downtown. And a new brewery just opened up.

Shopping at the area's three chain food markets, Wegman's, Aldi's and Top's, one notices the sharp class divide. Summer people from the Chautauqua Institute or those who have second homes on the lakes, hang out at Wegman's olive bar and extensive cheese counters. (But because this is a county with really really poor health outcomes, Wegman's bulk food section is almost all candy.) The Amish frequent Aldi's and the locals who are either carless or don't drive far, go to Top's.

We have water lots of water. We have natural gas wells, everywhere. Neighbors still get free gas, under decades old agreements with the producers. We have clean air (well, except when the gas pipelines spring a leak.) We have lots of land and timber (second or third growth.) We have old people who have inherited their grandfather's old diary farm, 100, 200, 300 acres, and are still sitting on the land. Our 95 year old neighbor, for instance. He still mows all the pastures regularly. Shhhh!

Fred, August 23, 2019 at 11:12 am

Personally as a retiree I'm OK with the economy. Low inflation is great. Wish the stock market was more stable, but with a slow down on it's way, not to mention an election, I can deal with it.

pretzelattack, August 23, 2019 at 11:26 am

if food prices go up and aren't counted as inflation, not sure it's great for most people.

Fred, August 23, 2019 at 2:31 pm

Core inflation doesn't include food or energy to eliminate seasonal changes. Overall inflation does include them. Often the press reports "inflation rate" without specifying. But you are right, my house is paid off, so I don't care that much about housing prices for now, it's mostly gas, food, utilities etc.

Oh, August 23, 2019 at 3:35 pm

The Fed's been looking out for you by controlling inflation. Yeah, right! The key components of inflation have been fiddled with to show little or no inflation.

Fledermaus, August 23, 2019 at 11:14 am

It is ironic how practitioners of the "dismal science" have turned into a hybrid of Pollyanna and Dr Pangloss

Summer, August 23, 2019 at 11:16 am

The Fed thinks the economy is fine? No way they can really think the economy is fine when there is so much begging for more low interest rates. The low interest rates are needed for bigger stock buybacks to prop up the overinflated housing and stock markets. Float those fantasies of fake wealth. It's alll that's left of their dystopian dream

Susan the other`, August 23, 2019 at 11:36 am

The Fed is functioning from an 1800s-liberal playbook in a 2019 post-neoliberal world. One thing has been proven beyond denial and that is that neoliberalism doesn't work. Infusions of money are still going to the rich, connected people mostly for frivolous justifications. Recession and ecological devastation plague the rest of us.

We have become complacent about homelessness. Hard to imagine being so oblivious. How quickly we regress to a less informed century without even a twitch of guilt on our part. When Putin blamed the world's dysfunction on liberal politics he wasn't far off. My how times don't change. If there is one thing we can look at and say, gee we really aren't a very good society after all, it is homelessness. In every big city in America. And congress? It is almost completely incapable of governing. We might as well be a feudal state again.

tegnost, August 23, 2019 at 4:47 pm

Thanks, yes, the "nothing to see here" about homelessness, which is dramatically worse than at any time in my 60 ish years, is notable.

timbers, August 23, 2019 at 11:46 am

Glancing at Powell comments today, it appears he and the Fed spend more time thinking and talking about the economic problems in China and Germany than he does here in America. That may explain a lot.

Badbisco, August 23, 2019 at 11:46 am

Just south of Portland, Maine:

Have been helping an in-law over the last 6 months find a house to move up here and got an interesting peek into the real estate market. Researched 80-100 different houses (3-4 BRs within 20 miles of Portland) and went to probably 30 open houses and personal showings.

General takeaways:

-- The market has been weirdly hot, with three separate all-cash offers at full list price rejected for other offers that were over ask.
-- People have noticed and a lot of houses have come on the market with elevated list prices as people try to cash in
-- Our own home's Zestimate on Zillow (no promise on how accurate this measure is) has increased almost 20% over the last year.
-- Tons of new houses built in last 2 years, typically of lower quality and on poor lots with houses close to each other and all trees removed
-- Quality of non-luxury or non-custom houses built from 1980's to now is generally poor; good example of crapification. Houses built in large numbers in sub-divisions in particular seem to have bad trim and obviously deteriorating siding/roofs/general conditions.
-- While the in-law isn't interested in a project, generally feel that solid older homes which can be relatively easily renovated would be the better long-term play.
-- Portland's real estate market, after the litany of "best City" and "Best restaurants" awards over the last few years and the advent of AirBnB, is out of the reach of most people. This has driven up the demand and prices in outlying towns as people look for housing close to the job center

Personally feel that the focus on dropping interest rates/protecting real estate values post the GFC has really hurt the country. Above and beyond favoring home-owners over younger people, the rising home prices increase property taxes that have to be paid and are hard to realize given selling your house requires buying a diff overpriced house. This is just leading to more and more debt being taken on to simply have a decent house.

Plenue, August 23, 2019 at 12:15 pm

One of the reliable signs that you're approaching the West Coast is the increasing number of homeless. They really start to appear around Spokane, and by the time you reach the Liberal strip along the Seattle-Portland-San Francisco line the tents are everywhere. And it's been this way for more than a decade. The real economy never recovered to begin with. Hard to be afraid of a new recession when you never left the old one.

justin synnestvedt, August 23, 2019 at 1:04 pm

Adding grist to the Austerity mill, here's a piece from Forbes trying to dismiss MMT, without even a pretext at providing an argument. Don't even think of those candidates who talk about MMT https://www.forbes.com/sites/johnmauldin/2019/08/21/modern-monetary-theory-could-destroy-this-nation/#303c0d3f1dd3

Jerry B, August 23, 2019 at 1:58 pm

IMO the US economy is a house of cards. What is the US economy currently? In my view it is the FIRE (Finance, IT, Real Estate, and Energy) sector, Education, and Health Care.

My memory is failing me as to how Yves and Lambert described the Finance sector's contribution to the overall economy but to me it is not really "productive" and mostly casino capitalism.

The medium to large cities are living off of the FIRE sectors. If you travel to small cities and towns it seems that Rural America is surviving on Education(Universities) and Healthcare. Let's tease that out a bit:

Full disclosure: For the accuracy/facts police, I am trying to paint a picture in broad strokes here of how I see the US economy.

Education (i.e. universities) and their employees are living off of the government (Pell Grants etc.), student loans, and the wealthy. Let's pretend the government ends any educational assistance for college students and that student loans are no longer available. What happens to the University Industrial Complex? It seems that many universities would close or as they are doing now start marketing to foreign students.

Healthcare seems heavily subsidized by the government i.e. Medicaid, Medicare, and ObamaCare and the wealthy. Yes many people have health insurance through their employer. And the US population is getting older and needing more healthcare. But when I look around what I see is an over expansion and oversupply of healthcare facilities. And hospitals do not look like hospitals anymore. They look like massive hotels. It seems the healthcare industrial complex and the university industrial complex are both bubbles that at some point will burst.

What will happen to the healthcare industry when Single Payer/Medicare for All is started and there is significant cost controls?? I think the gravy train is going to end for many health systems.

And what about college tuition? Sanders is talking about free college. I hope by that he means that the government will not be an open checkbook for universities and there will be cost controls as well?

Lambert has talked about the US needing an industrial policy. In my view it can't happen soon enough because relying on education, health care, and finance to sustain an economy is asking for trouble.

Lastly the grift of the healthcare sector and education sector seem related to the Predatory Precarity excerpt from Water Cooler a couple of days ago.

https://www.interfluidity.com/v2/7263.html

Many people are living large at the expense of education and healthcare and have a vested interest in maintaining the status quo. What happens when the bubble bursts?? Many small cities are going to be ghost towns.

The US economy is like a human body with no bones or decaying bones.

lordkoos, August 23, 2019 at 2:30 pm

The biggest city in our state (Seattle), is booming, so property values within a 75-100 mile radius have been increasing steadily for years. However Seattle also has thousands of homeless people, and things are definitely not booming for them.

Anecdotally, where I live in central WA I know quite a few young people in their 30s and 20s who patch together various crummy jobs to make ends meet. None of them can afford a house and it's hard to see much of a future for them other than endless part-time, low paying jobs . I know some others that are doing OK but most are just getting buy and I doubt they can amass any savings. The country kids around here with little education work agricultural jobs and deal drugs. A new thing around these parts is heroin, which 15 years ago was unheard of. The biggest employers in the area are local government and the university, and the student population helps some local businesses thrive.

The county I live in has an official poverty rate of 14%, about 1 out of every 7 people, but I think the actual amount is higher. We have a lot of Mexican immigrant workers here who likely are not counted, and in any case the federal definition of poverty is not very realistic. Same applies to official inflation stats. I would say that things are mixed, but for many under 40 the future isn't bright.

Fiery Hunt, August 23, 2019 at 4:16 pm

The view from a self-employed craftsman in the Bay Area: Local real estate is not dropping but there is a slight smell of realization that this might be the top o' the bubble so sellers are sweating to get on the market. Less readily agreeable to spending money on custom work..say 3 months delaying/hemming and hawing vs. "yes, let's do it."

My girl (who works in dental) her office has lost 3 people in the last year and are struggling to replaced them. The 3 Drs make $400,000 + each and just gave remaining staff a $1/hour raise to $24/per hour in an attempt to keep them. Full bennies and 401k contributions keep her there.

Future sis-in-law: works at a wholesale nursery up in Santa Rosa. Last couple of years they were working 6 days a week to keep up. This year? No longer working Saturdays and now Fridays have been cut. That's a 30% reduction in hours she's now on the brink. So, how's the economy? Depends who you are.

[Aug 23, 2019] Neoliberal colleges has been suctioning money out of the pockets of kids for the last couple decades

Aug 23, 2019 | www.nakedcapitalism.com

a different chris , , August 23, 2019 at 12:39 pm

>but I think things are actually going well.

Well duh. Your college has been suctioning money out of the pockets of kids for the last couple decades or so at a rate that is multiples of the general growth rate. Which means most (probably all) of the wealth you see around you is a shift from elsewhere, not a creation of such.

At best it is maybe repatriating some of the money going to Asia.

[Aug 23, 2019] Neoliberalism and Education: more evidence of "crapification

Aug 23, 2019 | www.nakedcapitalism.com

noonespecial , August 23, 2019 at 7:12 pm

Neoliberalism and Education
(To borrow a term often seen here at NC term – more evidence of "crapification")

In the new issue of the American Affairs Journal, the following article may be of interest to those who tune into scholastic matters. Two quotes are posted here in case the paywall obstructs.

"Rotten STEM: How Technology Corrupts Education"
https://americanaffairsjournal.org/2019/08/rotten-stem-how-technology-corrupts-education/

1. "But the technology pushed into schools today is a threat to child development and an unredeemable waste. In the first place, technology exacerbates the greatest problem of all in schools: confusion about their purpose. Education is the cultivation of a person, not the manufacture of a worker. But in many public school districts we have already traded our collective birthright, the promise of human flourishing, for a mess of utilitarian pottage called 'job skills.' The more recent, panicked, money-lobbing fetish for STEM is a late realization that even those dim promises will go unmet [E]ducational technology is a regressive political weapon, never just a neutral tool: it increases economic inequality, decreases school accountability, takes control away from teachers, and makes poorer students more vulnerable to threats from automation and globalization."

2. "Dumping gadgets on children is a win-win proposition in poor school districts. It's a win for tech billionaires looking to buy pro­gressive indulgences (e.g., Mark Zuckerberg in Newark), and it's a win for local mayors wanting to gesture toward needy schools with­out changing the underlying economic reality (e.g., Cory Booker in Newark, Pete Buttigieg in South Bend) The meanest trick of all is when funds allocated to bring struggling students "into the future" are used instead to banish them into the realm of for-profit programs called "online charter schools," which consist mostly of children watching lecture videos all day instead of being taught by a teacher. Online charter schools are a worsening catastrophe. Compared to the performance of peers in traditional public schools with similar income, race, gender, and first-language characteristics, the impact of online charter attendance on student reading is so bad, it's like miss­ing 72 days of school each year. In math, being afflicted by an online charter school is like being absent for 180 days!"

[Aug 23, 2019] Nearly 60% of those who said they grew up affluent now consider themselves to be in a lower class -- about half of this group said they're middle-class or upper-middle-class, while the other half said they're poor or working-class

Aug 23, 2019 | www.nakedcapitalism.com

This is a clear lack of up mobility. In other words American Dream is now a fake for all but extremely talented or extremely lucky. .

Class Warfare

"6 findings that show the dire state of America's middle class" [ Business Insider ] (From May, still germane). "Nearly 60% of those who said they grew up affluent now consider themselves to be in a lower class -- about half of this group said they're middle-class or upper-middle-class, while the other half said they're poor or working-class. Nearly 60% of those who said they had an upper-middle-class upbringing identified with a lower class -- half of this group said they're middle-class, while the remaining half said they're poor or working-class. And while half of those who said they grew up in the middle class said they're still in it today, more than one-third identified with a lower class. Only about 12% said they're now part of a higher class." • Lover

[Aug 22, 2019] BOLD ENDEAVORS Lessons from Polar and Space Exploration

Notable quotes:
"... A lesson of use at job interviews, schools and even in families. I am thankful for an added knowledge and understanding of the many problems associated with these Endeavors. This book should be a "must" to all young people. ..."
Oct 16, 1999 | Amazon.com
Britta Sahlgren, October 16, 1999
An intriguing story of human relationships in the extreme.

Bold Endeavors by Jack Stuster proved to be a real page-turner! Since childhood reading about adventures and explorers had been my favorite literature. In this book the persons behind these endeavors came to life.

They were of flesh and blood and you as a reader took part of their everyday life, their hardships and personal problems. A thrilling experience. A lesson in the importance of relationships not only among people in isolation

A lesson of use at job interviews, schools and even in families. I am thankful for an added knowledge and understanding of the many problems associated with these Endeavors. This book should be a "must" to all young people.

[Aug 22, 2019] https://getpocket.com/explore/item/the-purpose-of-life-is-not-happiness-it-s-usefulness

Aug 22, 2019 | getpocket.com

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Stories to fuel your mind. The Purpose Of Life Is Not Happiness: It's Usefulness Happiness as an achievable goal is an illusion, but that doesn't mean happiness itself is not attainable. Darius Foroux

For the longest time, I believed that there's only one purpose of life: And that is to be happy.

Right? Why else go through all the pain and hardship? It's to achieve happiness in some way.

And I'm not the only person who believed that. In fact, if you look around you, most people are pursuing happiness in their lives.

That's why we collectively buy shit we don't need, go to bed with people we don't love, and try to work hard to get approval of people we don't like.

Why do we do these things? To be honest, I don't care what the exact reason is. I'm not a scientist. All I know is that it has something to do with history, culture, media, economy, psychology, politics, the information era, and you name it. The list is endless.

We are who are.

Let's just accept that. Most people love to analyze why people are not happy or don't live fulfilling lives. I don't necessarily care about the why .

I care more about how we can change.

Just a few short years ago, I did everything to chase happiness.

But at the end of the day, you're lying in your bed (alone or next to your spouse), and you think: "What's next in this endless pursuit of happiness?"

Well, I can tell you what's next: You, chasing something random that you believe makes you happy.

It's all a façade. A hoax. A story that's been made up.

Did Aristotle lie to us when he said:

"Happiness is the meaning and the purpose of life, the whole aim and end of human existence."

I think we have to look at that quote from a different angle. Because when you read it, you think that happiness is the main goal. And that's kind of what the quote says as well.

But here's the thing: How do you achieve happiness?

Happiness can't be a goal in itself. Therefore, it's not something that's achievable.

I believe that happiness is merely a byproduct of usefulness.

When I talk about this concept with friends, family, and colleagues, I always find it difficult to put this into words. But I'll give it a try here.

Most things we do in life are just activities and experiences.

Those things should make you happy, right? But they are not useful. You're not creating anything. You're just consuming or doing something. And that's great.

Don't get me wrong. I love to go on holiday, or go shopping sometimes. But to be honest, it's not what gives meaning to life.

What really makes me happy is when I'm useful. When I create something that others can use. Or even when I create something I can use.

For the longest time I foud it difficult to explain the concept of usefulness and happiness. But when I recently ran into a quote by Ralph Waldo Emerson, the dots connected.

Emerson says:

"The purpose of life is not to be happy. It is to be useful, to be honorable, to be compassionate, to have it make some difference that you have lived and lived well."

And I didn't get that before I became more conscious of what I'm doing with my life. And that always sounds heavy and all. But it's actually really simple.

It comes down to this: What are you DOING that's making a difference?

Did you do useful things in your lifetime? You don't have to change the world or anything. Just make it a little bit better than you were born.

If you don't know how, here are some ideas.

That's just some stuff I like to do. You can make up your own useful activities.

You see? It's not anything big. But when you do little useful things every day, it adds up to a life that is well lived. A life that mattered.

The last thing I want is to be on my deathbed and realize there's zero evidence that I ever existed.

Recently I read Not Fade Away by Laurence Shames and Peter Barton. It's about Peter Barton, the founder of Liberty Media, who shares his thoughts about dying from cancer.

It's a very powerful book and it will definitely bring tears to your eyes. In the book, he writes about how he lived his life and how he found his calling. He also went to business school, and this is what he thought of his fellow MBA candidates:

"Bottom line: they were extremely bright people who would never really anything, would never add much to society, would leave no legacy behind. I found this terribly sad, in the way that wasted potential is always sad."

You can say that about all of us. And after he realized that in his thirties, he founded a company that turned him into a multi-millionaire.

Another person who always makes himself useful is Casey Neistat . I've been following him for a year and a half now, and every time I watch his YouTube show , he's doing something.

He also talks about how he always wants to do and create something. He even has a tattoo on his forearm that says "Do More."

Most people would say, "why would you work more?" And then they turn on Netflix and watch back to back episodes of Daredevil.

A different mindset.

Being useful is a mindset. And like with any mindset, it starts with a decision. One day I woke up and thought to myself: What am I doing for this world? The answer was nothing.

And that same day I started writing. For you it can be painting, creating a product, helping elderly, or anything you feel like doing.

Don't take it too seriously. Don't overthink it. Just DO something that's useful. Anything.

Darius Foroux writes about productivity, habits, decision making, and personal finance. His ideas and work have been featured in TIME, NBC, Fast Company, Inc., Observer, and many more publications. Join his free weekly newsletter.

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This article was originally published on October 3, 2016, by Darius Foroux, and is republished here with permission. Darius Foroux writes about productivity, habits, decision making, and personal finance.

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[Aug 21, 2019] Losing a job in your 50s is especially tough. Here are 3 steps to take when layoffs happen by Peter Dunn

Unemployment benefits currently are usually is just six month or so; this is the time when you can plan you "downsizing". You do not need to rush but at the same time do not expect that you will get job offers quickly, if at all. Usually it does not happen. many advertised positions are fakes, another substantial percentage is already reserved for H1B candidates and posting them is the necessary legal formality.
Often losing job logically requires selling your home and moving to a modest apartment, especially if no children are living with you. At 50 it is abut time... You need to do it later anyway, so why not now. But that's a very tough decision to make... Still, if the current housing market is close to the top (as it is in 2019), this is one of the best moves you can make. Getting from your house several hundred thousand dollars allows you to create kind of private pension to compensate for losses in income till you hit your Social Security check, which currently means 66.
$300K investment in A quality bonds that returns 3% per year is enough to provides you with $24K per year "private pension" from 50 to age of 66 when social security kicks in. That allows you to pay for the apartment and amenities. The food is extra but with this level of income you qualify for food assistance.
This way you can take lower paid job, of much lower paid job (which mean $15 per hour), of temp job and survive.
And if this are many form you house sell your 401k remains intact and can supplement your SS income later on. Simple Excel spreadsheet can provide you with a complete picture of what you can afford and what not. Actually the ability to walk of fresh air for 3 or more hours each day worth a lot of money ;-)
Notable quotes:
"... Losing a job in your 50s is a devastating moment, especially if the job is connected to a long career ripe with upward mobility. As a frequent observer of this phenomenon, it's as scary and troublesome as unchecked credit card debt or an expensive chronic health condition. This is one of the many reasons why I believe our 50s can be the most challenging decade of our lives. ..."
"... The first thing you should do is identify the exact day your job income stops arriving ..."
"... Next, and by next I mean five minutes later, explore your eligibility for unemployment benefits, and then file for them if you're able. ..."
"... Grab your bank statement, a marker, and a calculator. As much as you want to pretend its business as usual, you shouldn't. Identify expenses that don't make sense if you don't have a job. Circle them. Add them up. Resolve to eliminate them for the time being, and possibly permanently. While this won't necessarily lengthen your fuse, it could lessen the severity of a potential boom. ..."
Feb 15, 2019 | finance.yahoo.com

... ... ...

Losing a job in your 50s is a devastating moment, especially if the job is connected to a long career ripe with upward mobility. As a frequent observer of this phenomenon, it's as scary and troublesome as unchecked credit card debt or an expensive chronic health condition. This is one of the many reasons why I believe our 50s can be the most challenging decade of our lives.

Assuming you can clear the mental challenges, the financial and administrative obstacles can leave you feeling like a Rube Goldberg machine.

Income, health insurance, life insurance, disability insurance, bills, expenses, short-term savings and retirement savings are all immediately important in the face of a job loss. Never mind your Parent PLUS loans, financially-dependent aging parents, and boomerang children (adult kids who live at home), which might all be lurking as well.

When does your income stop?

From the shocking moment a person learns their job is no longer their job, the word "triage" must flash in bright lights like an obnoxiously large sign in Times Square. This is more challenging than you might think. Like a pickpocket bumping into you right before he grabs your wallet, the distraction is the problem that takes your focus away from the real problem.

This is hard to do because of the emotion that arrives with the dirty deed. The mind immediately begins to race to sources of money and relief. And unfortunately that relief is often found in the wrong place.

The first thing you should do is identify the exact day your job income stops arriving . That's how much time you have to defuse the bomb. Your fuse may come in the form of a severance package, or work you've performed but haven't been paid for yet.

When do benefits kick in?

Next, and by next I mean five minutes later, explore your eligibility for unemployment benefits, and then file for them if you're able. However, in some states severance pay affects your immediate eligibility for unemployment benefits. In other words, you can't file for unemployment until your severance payments go away.

Assuming you can't just retire at this moment, which you likely can't, you must secure fresh employment income quickly. But quickly is relative to the length of your fuse. I've witnessed way too many people miscalculate the length and importance of their fuse. If you're able to get back to work quickly, the initial job loss plus severance ends up enhancing your financial life. If you take too much time, by your choice or that of the cosmos, boom.

The next move is much more hands-on, and must also be performed the day you find yourself without a job.

What nonessentials do I cut?

Grab your bank statement, a marker, and a calculator. As much as you want to pretend its business as usual, you shouldn't. Identify expenses that don't make sense if you don't have a job. Circle them. Add them up. Resolve to eliminate them for the time being, and possibly permanently. While this won't necessarily lengthen your fuse, it could lessen the severity of a potential boom.

The idea of diving into your spending habits on the day you lose your job is no fun. But when else will you have such a powerful reason to do so? You won't. It's better than dipping into your assets to fund your current lifestyle. And that's where we'll pick it up the next time.

We've covered day one. In my next column we will tackle day two and beyond.

Peter Dunn is an author, speaker and radio host, and he has a free podcast: "Million Dollar Plan." Have a question for Pete the Planner? Email him at AskPete@petetheplanner.com. The views and opinions expressed in this column are the author's and do not necessarily reflect those of USA TODAY.

[Aug 17, 2019] America is the richest country in the world, but it has more than half a million homeless and 28 million people without health insurance out of a population of around 325 million. Is America Crazy? by John Feffer

Decline of neoliberalism in not a pretty picture. Whom the gods would destroy they first make mad. Greek version of this saying which appers in Sophocles’ play Antigone is more precise: "evil appears as good in the minds of those whom god leads to destruction". Oscar Wilde — 'When the Gods wish to punish us, they answer our prayers.'
Aug 17, 2019 | www.counterpunch.org
The United States witnessed three mass shootings in one week recently in California, Texas, and Ohio. There have been more than 250 mass shootings so far in 2019, more than one a day. This year in America, more than 33,000 shooting incidents have killed more than 8,700 people.

America is the richest country in the world, but it has more than half a million homeless and 28 million people without health insurance – out of a population of around 325 million. The U.S. infant mortality rate places it 33rd out of wealthiest 36 nations.

... ... ...

People from other industrialized countries must think that the United States has simply gone insane. It is a nation of terrible extremes: grotesque wealth and horrific poverty, brilliant minds and widespread ignorance, high rates of volunteerism and endemic violence. America seems to be suffering from some kind of bipolar disorder with pockets of manic energy and large areas of deep depression.

It would be tempting to argue that America is only suffering from a bout of temporary insanity. But mass shootings, gross economic inequality, and corruption didn't begin when Donald Trump became president. He has made matters worse, to be sure. But these trends are longstanding.

So, why do Americans put up with such violence, economic inequality, and political nonsense?

... ... ...

Moreover, more than half of Americans have never traveled to another country. One in ten hasn't even gone outside the state in which he or she was born. Since most of the news about other countries is negative, Americans naturally believe that life is more dangerous outside their borders. They haven't actually seen what it's like in other countries, so there's no way for them to compare the craziness of life in America with life anywhere else.

Of course, plenty of countries experience considerable violence, economic inequality, and political corruption. But they are usually not powerful industrialized nations.

In the 2019 Global Peace Index , for instance, the United States ranks 128 th in the world, between South Africa and Saudi Arabia. Kosovo, Haiti, and Bangladesh all rank higher than America. Part of the reason that the United States ranks so poorly is the amount of military violence that the country inflicts around the world – through war, arms sales, and military bases. But the high homicide rate in the United States also dragged its score down.

The GINI index measures a country's economic inequality. The United States, according to OECD figures , is fourth from the bottom of the wealthiest countries in the world. Only Chile, Turkey, and Mexico have greater income inequality after taxes and transfers.

On corruption issues, the United States has generally been in the top twenty in terms of transparency. But in 2018, it dropped six places to number 22 in the Transparency International rankings. Here, the influence of the Trump administration has been significant. The problem is not ordinary corruption like bribery. Rather, Trump is challenging the very foundations of the rule of law. He promised to "drain the swamp" of political influence-peddling in Washington, DC. But he has only made the nation's capital swampier.

Individuals with mental disorders can seek professional help. They can take medications and enter psychotherapy. They can check themselves into a hospital.

But what happens when a country is crazy?

[Aug 17, 2019] Bankruptcy-related job losses are rising at rates not seen since 2009

Aug 17, 2019 | economistsview.typepad.com

im1dc , August 07, 2019 at 05:44 PM

"Bankruptcy-related job losses are rising at rates not seen since 2009"

Grim foreshadowing of what may come and quickly...

https://www.marketwatch.com/story/bankruptcies-cause-the-highest-number-of-job-losses-since-2009-when-the-us-was-in-the-depths-of-the-great-recession-2019-08-06

"Bankruptcy-related job losses are rising at rates not seen since 2009, invoking grim reminders of the Great Recession"

By Quentin Fottrell, Personal Finance Editor...Aug 7, 2019...8:24 p.m. ET

"The recent spate of bankruptcies in corporate America is taking its toll.

In the first seven months of the year, U.S.-based companies announced 42,937 job cuts due to bankruptcy, up 40% on the same period last year and nearly 20% higher than all bankruptcy-related job losses last year, a report released Tuesday concluded. Despite record-low unemployment, bankruptcy filings have not claimed this many jobs since the Great Recession.

"It is the highest seven-month total since 2009 when 50,258 cuts due to bankruptcy were announced," according to the report by outplacement and business coaching firm Challenger, Gray & Christmas. "In fact, it is higher than the annual totals for bankruptcy cuts every year since 2009."...

[Aug 17, 2019] Life, Deferred Student Debt Postpones Key Milestones for Millions of Americans naked capitalism

Aug 17, 2019 | www.nakedcapitalism.com

https://c.deployads.com/sync?f=html&s=2343&u=https%3A%2F%2Fwww.nakedcapitalism.com%2F2019%2F08%2Flife-deferred-student-debt-postpones-key-milestones-for-millions-of-americans.html

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https://acdn.adnxs.com/ib/static/usersync/v3/async_usersync.html <img src="http://b.scorecardresearch.com/p?c1=2&c2=16807273&cv=2.0&cj=1" /> By Natalia Abrams, the Executive Director of Student Debt Crisis, and Cody Hounanian, the Program Director of Student Debt Crisis. Originally published at openDemocracy

Student debt has been solely responsible for the majority of my decision-making as an adult
(Erin – Portland, Maine)

The student debt crisis is not the burden of a single generation. It impacts Baby Boomers in their 60s and 70s; Gen Xers in their 40s and 50s; Millennials in their 20s and 30s – as well as Gen Z high school students still planning for college. Thus it's a grave mistake to frame student loan debt as exclusively or even primarily a "Millennial problem." At the same time, Millennials have borne the brunt of the astounding rise in college costs. They are the first generation to experience a life shaped by the near-certainty of student debt.

Weighted for inflation, college costs (including tuition and fees) rose 81% between 2001 and 2009 – the decade when well over half of Millennials graduated high school.

Traditionally, when the price of a commodity rises rapidly, demand for that commodity drops. Necessities like food and shelter are usually exempt from that general rule. However, college has become one of those essentials, with the perceived cost of not attending growing at least as fast as the actual costs themselves. As a result, student loans make the essential, attainable.

Not everyone saddled with a tremendous debt burden ends up with a degree. Whether a borrower receives a degree or not, few are in a position to rapidly repay their student loans. While a college degree may or may not expand opportunities; as we're finding, student loan debt absolutely shuts doors that might have otherwise remained open.

Lower Homeownership rates

Growing up I was told by my parents, teachers, and guidance counselors to go to college because it would give me a better life. I graduated in 2013 with a Master's Degree in English with the hopes of being a teacher myself. There are no teaching jobs in high schools or colleges and I owe over $100,000 in student debt. I now work a job that doesn't even require a degree, and was turned down for a mortgage because my debt to income ratio was too high. Not a day goes by where I don't think about my debt
(Danielle – Roseville, California)

If homeownership is fundamental to the 'American dream', then student loan debt puts that dream out of reach for millions of Americans. After years of growth, homeownership rates noticeably declined in 2017. While partly due to factors unrelated to student debt (such as rising housing prices , particularly in urban areas), the rate of Millennial homeownership has fallen faster than that of the general population.

In a January 2019 study, the Federal Reserve revealed the connection between lower homeownership rates and the Millennial generation most burdened by student debt: "our estimates suggest that increases in student loan debt are an important factor in explaining (young people's) lowered homeownership rates." The study went on to conclude that "a little over 20 percent of the overall decline in homeownership among the young can be attributed to the rise in student loan debt. This represents over 400,000 young individuals who would have owned a home in 2014 had it not been for the rise in debt."

While the Federal Reserve study focused on the decade between 2005-2014, a 2019 survey by Bankrate of nearly 4,000 American borrowers found that 31% of Millennial respondents postponed buying a home because of student loan debt. By comparison, when the Baby Boomers were entering the housing market 40 years ago, only 15% delayed a purchase because of student loan debt.

It's also worth noting that the real number of Millennials unable to purchase a home because of student debt is likely much higher. While 31% of Millennial respondents reported that student debt directly delayed homeownership, this figure only accounts for potential buyers who still consider future homeownership a real possibility. Thus it does not reflect the unknown number of those whose debt to income ratio is so high that they don't expect to ever afford a home. As Forbes noted in 2019, "no matter how many possible solutions are tossed around Washington and beyond on reducing the crushing burden of student loan debt, it remains one of the top reasons millennials are putting off buying a home."

Historically, home mortgages defined middle-class debt. Yet due to pre-existing debt, student loan borrowers face difficulty qualifying for a mortgage. In tandem with rising housing prices, and stringent mortgage qualification requirements adopted in the wake of the 2008 economic crisis, those with already exorbitant levels of student debt face a near-perfect storm for obtaining a mortgage: placing a key component of the 'American dream' out of reach for millions of young Americans.

A 2018 study by Summer and Student Debt Crisis found that 56% of respondents reported that student loan debt made it more difficult to buy a home. That figure excludes those who consider homeownership so unattainable that they have preemptively "given up." The same study notes that 58% of those surveyed experienced a decline in their credit score as a direct result of their student debt. Credit scores, based on past payment habits as well as debt-to-income ratios, are pivotal to mortgage qualification. Even borrowers who haven't yet considered buying a home are keenly aware that their student-debt-burdened credit scores have put a mortgage out of reach.

Fewer Marriages

I have put off having children, marrying, or purchasing a home due to the high costs of student debt repayment. Regularly, I contemplate selling everything and living in my car to help free up money to pay off the debt sooner.
(Melissa – Granbury, Texas)

Homeownership is not the only dream deferred, or abandoned altogether, because of crushing student loan debt.

One theme in the stories we've collected – and in our studies – is that student debt is an overwhelming factor in declining marriage and birth rates. Millennial borrowers like Melissa, regularly told us that there were three central dreams that debt had put out of reach: buying a home, getting married, and having children.

In 1990, 26% of adults under 65 were never married – by 2018, that number rose to 36%. Today, only one in five adults are married before the age of 30 – and the average age of first marriage has risen by more than six years since 1960. There are a host of factors that have driven the marriage rate to record lows – and we do not suggest that student debt is the sole (or even primary) driver of delayed marriage. Evolving and elevated expectations for romantic partnership, economic shifts, greater equality for women and increased acceptance of premarital sex all play critical roles in changing marriage habits. One cause of social transformation however, doesn't negate the impact of another.

Student loan debt delays marriage in several ways. One way is through a sheer misunderstanding of the law regarding debt. Several borrowers told us they were reluctant to marry and "make my spouse responsible for my debt." Though the laws concerning spousal responsibility vary by state, the fears of saddling a partner with one's debts are not unfounded. Similarly, if a spouse with pre-existing debt returns to school after marriage, both the debt incurred before and during marriage gets lumped together as a shared liability.

Practically, the legal responsibility for the liability is a nominal matter. Most couples cannot simply isolate one partner's debt. The money spent each month on student loans could be collectively used for other essentials, like rent, car repairs, or childcare.

A study released in June 2019 by the think-tank Demos showed that those who start college after age twenty (or go back to college following a break) have a particularly hard time paying off loans. Twelve years after leaving school, the average borrower (who started college after the age of twenty) will have paid off only 5% of their student debt. If a borrower is determined not to bring their student debt into a marriage, research suggest that they will have to wait a very long before they wed.

Media coverage tends to ignore that finances, rather than changing social mores, are the primary driver of diminishing marriage rates. For every young person who "never wants to marry", statistics suggest there are far more who would like to wed someday but can't imagine ever being able to afford to do so. A Pew Organization study in 2017 found that nearly six out of ten unmarried American adults hope to marry someday. That same report noted that unmarried Millennials cited "not being financially stable" as one of the chief reasons why they haven't yet wed. 41% of those unmarried cited financial instability as a primary reason for remaining single, while 28% described it as a "secondary" reason. (By comparison, only 24% of young adults named "not being ready to settle down" as the primary explanation for not being married.)

The research is clear: the primary reason why Americans delay wedlock, or forego it altogether, is financial insecurity. Debt is reshaping our most intimate relationships, putting a profound source of happiness further and further out of reach.

Falling Birthrates

My wife and I have been married 3 years and she desperately wants kids. But paying out $350 a month to pay off my 45k in loans has shattered our dreams of family. We both work but it's not enough. I've paid my loans since 2004 and I'm not getting ahead.
(James – Kansas City, Missouri)

With less homeownership, along with fewer marriages – it's hardly surprising that the most debt-laden generation in history is also having far fewer babies than their parents and grandparents. Millennials are on track to have a lower birth rate than any generation in American history. In 2018, the overall birth rate in the United States fell to 59 births per 1000 women, the lowest on record and a 2% drop from the previous year.

The birth rate has fallen steadily since the start of the Great Recession in 2008. Yet even after the recovery, the birth-rate continued to decline.

There's a disagreement as to whether the birthrate decline can be attributed to women wanting fewer babies (or wanting them later), versus women being unable to afford children. Yet the survey data is fairly compelling: most young people have had (or expect to have) fewer children than they consider ideal. In a 2018 New York Times/Morning Consult survey , four of the top five reasons respondents cited for not having as many children as they wanted focused on financial concerns:

Child care is too expensive (64% of respondents) Want more time for the children I have (54%) Worried about the economy (49%) Can't afford more children (44%) Waited because of financial instability (43%)

Furthermore, a 2015 study by the National Institutes of Health examined the impact of debt on the decision to have children. The results were stunning. While mortgage holders were more likely than renters to have children, and credit-card debt had no impact among debtors, the study found that "holding student loans more significantly affects fertility at higher levels of indebtedness." Low levels of student loan debt reduced fertility only slightly; high levels of student debt sharply reduced the chances of having a baby.

Every generation reassesses priorities. Some pundits look at the lives of Millennials and conclude that they're simply less interested in homeownership, simply more suspicious of enduring monogamy, simply less interested in having children. The evidence shows that's a false narrative.

The research in fact reveals that a high percentage of Millennials want homeownership, marriage, and children. The chief obstacle is not the timeless problem of finding the right person, but financial insecurity. Student loan debt is a central driver behind this precarity – affecting the fundamental milestones of our lives.

Freshstart , August 16, 2019 at 6:05 am

I hear the phrase "student loan forgiveness " quite often these days. "Forgiveness" for being a victim of financial predators and a failed leadership class? No, that's not forgiveness. That's justice. Forgiveness comes from the victims, not the perpetrators. Personally, I'm not forgiving anybody involved. Politicians, schools, the "financial industry", etc. These are the folks that should be begging for forgiveness from the borrowers, not the other way around. These policies have destroyed lives. They then try to frame any corrective action as doing the victims a favor, "forgiveness", rescuing the borrowers from their own failures and poor choices. Right. This is basically a war on the poor. I wonder if it isn't a way to curb greenhouse emissions without inconveniencing the wealthy.

Carla , August 16, 2019 at 6:18 am

Excellent comment -- thank you! Let us never let our fellow Americans forget Joe Biden's central role in killing bankruptcy protection for student debtors.

Michael Fiorillo , August 16, 2019 at 7:27 am

Extremely perceptive and wise comment.

I also think your final point is very important, as I am increasingly convinced that "environmental footprint reduction" is likely to be used as a pretext for further austerity for the working class. Environmentalism has always been a mostly elite and middle class phenomena, and working class interests are often unmindfully ignored or disregarded. In fact, I don't think it's unduly paranoid to anticipate ostensibly radical environmentalists (Extinction Rebellion and the like) being used as cat's paws to extend Overclass policies of extraction and control.

Bugs Bunny , August 16, 2019 at 8:35 am

It's already happened in France – the Gilets Jaunes movement was a direct result of the radical neoliberal Macron government putting higher taxes on diesel – a regressive tax on the poor and rural working class.

Michael Fiorillo , August 16, 2019 at 9:14 am

Yes, of course: thanks for pointing that out.

bmeisen , August 16, 2019 at 10:27 am

No, penury and exploitation as a result of educational debt is not a way to cut greenhouse gas emissions without inconveniencing the wealthy. It's just another example of Americans being suckered by their own delusions and ignorance, just another example of wealthy Americans, many of whom are rich without being educated, ripping off poorer Americans, many of whom ernestly believe that going into long-term crippling debt in order to pay for a college degree is a good way to get up and out of living from week to week with maxed out credit cards.

The typical American university/college student has drunk the kool-aid. She believes that higher education is a personal choice, freely made, to invest in earning potential. The possibility that this is not necessarily the case apparently does not occur to her. She genuinely believes, or sometimes she is compelled to believe, that it makes sense to take on for example 100k in educational debt because the degree that should follow will allow her to earn a hopefully large multiple of that number. Such students and their parents are apparently blind to the fact that a country that struggles to defend a primitive form of democracy is doomed to dystopic horrors without an educated population. Education, including higher education, is not a personal choice alone – much more it is a national mission that compels the government to provide instruction to qualified candidates at a minimal cost to candidates. This is a not a utopian vision – this is reality in democracies that are not as primitive as the American.

The attempt to associate the diesel tax with French educational policy needs clarification: The French have free public higher education. Their free public higher education consists of institutions that are selective, some highly selective, as well as institutions that are not selective. The selective institutions are intended to provide a nominally meritocratic elite-building function at the service of both public and private beneficieries. Public transport infrasturcture is weak in the country, and the Gilets Jaunes (GJ) argue that that's becasue administrators and mangers, many of whom are graduates of tuition-free elite universities, have not only failed to improve it: they threw salt in GJ wounds by attempting to impose a diesel tax. Though for many the tax is a tax-deductable expense, there are enough economically non-rural residents of rural areas in France to make the salt really sting. The GJ should more aggressively criticize the meritocratic fallacy of (highly) selective public institutions and bring attention to the phenomenon of economically non-rural residents of rural areas. They are relatively heavy polluters (lots of driving, single-family homes). I wonder if public transport infrastructure in rural areas could be expanded or if economically non-rural residents of rural areas could be compelled to live in less isolation.

Keith Newman , August 16, 2019 at 12:27 pm

For bmeisen: Thanks for the interesting insights on the Gilets jaunes.

juliania , August 16, 2019 at 9:25 am

The most repressive and draconian indebtedness has been thrust upon the youth of America by its government. I say 'youth' because many of those suffering under this burden were young once but have struggled long enough to be middle aged and even beyond in the search for a quality education, not only so they could have a good job but also in order to develop their minds. This was not a foolish pursuit – – until it was.

Something has to be done about this. And if it has to be done, it will be done, to paraphrase what Professor Hudson has said: if a debt can't be paid it won't be paid. And also lest we forget, these neoliberal shenanigans came about as financiers figured they could layer everything into juicy offerings for the players on Wall Street. Tranches or trenches as with mortgages – you know, like layers of filo dough with yummy stuff sandwiched in between. (Hah, my spellcheck doesn't like the word 'neoliberal'. Phooey on you, spellcheck; it's a word!)

Thank you, Yves.

bmeisen , August 16, 2019 at 11:01 am

Hasn't been thrust upon the youth of America by its government – the student debt crisis is a result of predatory financial interests consorting with ignorant, anti-government ideologues to corrupt the wise support of state and federal governments for public education. Private non-profit as well as private for-profit "educators" have lobbied lobbied lobbied for example to expand government lending facilities for students while doing little to regulate the "institutions" that were convincing candidates to use the facilities to borrow funds to pay for the questionable degrees that the "institutions" were awarding. There should have been a major cultural effort to convince Americans that we need public education including virtually free higher education and to contradict the delusion that an investment in higher education was essentially an investment in earning potential. Free public education including effectively free public higher education is essential for the success of democracy. Sadly many Americans have forgotten a fundamental aspect of the American Way of Life.

JohnnySacks , August 16, 2019 at 10:09 am

Brother in law couldn't make the payments, went underground and worked for cash, then ultimately committed suicide in his 50's. Not saying he wasn't unstable to begin with, but will say that having a mountain of debt he was never going to be able to get out from under certainly was a major factor.

With an 81% increase adjusted for inflation in under a decade, why aren't schools being penalized? Why not stop writing any and all loans for those schools?

polecat , August 16, 2019 at 12:37 pm

Schools WILL be penalized, by going out of business .. as many surely will !! .. especially the ones specializing in SJW studies

Medbh , August 16, 2019 at 9:11 am

That's an excellent point. I had burdensome student loans and eventually paid them off, but I support student loan forgiveness. However, from a political standpoint, I understand why some people are angry about the concept. They think they were smart and chose not to go to college because of the financial danger, and if loans are forgiven, they're being "punished" in the housing and job market for being "responsible."

Your "justice" framing could address both of these interest groups. Instead of just looking at the student loans alone, we'd consider all the ways in which the loans and the degrees have influenced people's lives. Maybe everyone could have access to "educational credit," which could be used to directly pay off existing loans, allow people to enroll in a degree program now, or be credited towards a new or existing mortgage. The program becomes a universal benefit, and depending upon one's situation, the money could be used in different, socially beneficial ways.

The main point is I like the "justice" framing, and it should be used to create a program that benefits everyone. Then the messaging is more about rectifying a dysfunctional system, then bailing out irresponsible spendthrifts (I don't believe this is true, but that is how loan forgiveness is framed).

Joe Well , August 16, 2019 at 10:32 am

How about the government takes over all consumer debt and charges only the Fed rate in interest? And writes down any amount considered unpayable? Would anyone not connected to the financial industry be opposed?

Big River Bandido , August 16, 2019 at 5:05 pm

The arguments against student loan forgiveness on the basis of "I paid mine off, why can't you?" are short-sighted and ultimately injure the person making them.

Everyone is harmed by the toxic environment of debt that we're living in -- even those of us who never had student loans and those of you who paid them off. We are all suffering under a regime that has paralyzed people economically. The act of debt cancellation, as those whose incomes were locked up now get a little piece of it back to spend on other things, would have a stimulative effect on the economy.

Tyronius , August 16, 2019 at 11:50 am

We can start holding those responsible accountable by refusing to support Joe Biden for office!

The key is to tell everyone, including poll takers, the reason why we won't vote for him.

I graduated in 1995 and I'm still over $65k in debt. I'll vote for any politician who will fight to redress this injustice.

It's time Washington fights for We the People instead of the already outrageously wealthy.

Carla , August 16, 2019 at 2:40 pm

Hear, Hear!

timbers , August 16, 2019 at 8:26 am

I work with a lady who's only child entered college last year, and was exposed at work to her discussions with her daughter over the phone and with co workers what is on the list she choose for her student loans. Things like room and board/rent, etc. This lady has a killer personality that works smashingly well in corporate offices – only positive things may be talked about and she juggles her aging, ailing mom, her daughter off to college, and work quite well.

It wasn't my place to offer advice, but I got a bad feeling listening to the load up of student loan debt. Then I overhead her advice to her mother regarding what package from Comcast to get. She recommended the package for seniors with insurance that protects seniors from phishing and that sort of thing. I don't recall the fee, but she also has insurance for her smart phone screen.

The $$$ signs of how I could manager their budget and save them some money where dancing in my head.

I guess they call that being a Financial Advisor today. It used to be called common sense.

When I was with my former, much younger partner, I told him he would live free with me on condition he cut back his 60+hrs/week working at multiple Dunkin Donuts and go to school, take NO school debt and pay everything with his paycheck. He did, and got tax credits on top of that. He choose medical billing and coding at a school that has since gone bankrupt. But it got him in the door. He is now supervisor in the billing department at Boston Children's Hospital and they told him they are sending him to management training at their expense.

He too has a killer personality. Perfect for Facebook where only positive things are said. He will do well but I worry he will later be not so well off because he doesn't save, he spends everything he has.

My first year at University of Chicago undergrad was $4,000. Second year $5,000. Then I moved to Boston and my employer paid most of my school expense while I finished up at Northeastern University. Peanuts compared to today.

I would never pay for College education at todays prices. I'd take that same money and buy a house.

Arizona Slim , August 16, 2019 at 8:57 am

Insurance for a smartphone screen? Yeesh!

And I say that as someone who just dropped a smartphone face-down on a hardwood floor.

I'm here to say that my screen protector, which cost something like 30 bucks, did its job. It took one for the Arizona Slim team and cracked in several places. The screen was intact. Hooray!

However, the replacement protector doesn't stick, so back to the phone repair shop I go. While I'm there, I think I'll strike up a conversation about the right to repair. Hey, I might just be able to turn another person on to Naked Capitalism.

Arizona Slim , August 16, 2019 at 12:09 pm

Indeed I did. The phone repair guy was very interested in NC.

Matter of fact, I showed him how to pull up the site and read that recent article about Apple. Link:

https://www.nakedcapitalism.com/2019/08/rotten-apple-right-to-repair-roundup.html

And then I went down the street to a state senator's office. Said senator is very interested in fracking issues. So, another recruit to our site.

JohnnySacks , August 16, 2019 at 10:49 am

I'd say that a robust course in home economics would be valuable in public schools. But I'm guessing our owners would heavily attack that effort.

Fact is, if you want to have any professional career, an education is mandatory. I don't want my nurse practitioner or doctor to be the likes of the Trump children simply because they're the only ones who will be able to afford the education, same as all economics, political science, law etc. workers to only be the ones who can afford it. Sort of insures that our future leaders won't have any clue whatsoever about the lives of the 90% they'll be claiming to support. A crappy situation made even worse.

Joe Well , August 16, 2019 at 8:44 am

The author claims that college costs (that term is not defined) rose 80% from 2001 to 2009. That is far higher than any figure I have seen. According to National Center for Education Satistics, the figure for tuition+fees is closer to 30% which is still outrageous. If the descrepancy means that aid is being cut back more or non-tuition/fee costs are increasing faster, that would be good to know. Defenders of high prices claim that aid is increasing (I doubt that but do not have figures).

Anyway, #freecollege

Arizona Slim , August 16, 2019 at 8:53 am

Good discussion topic. Permit me to share a little tale from the Arizona Slim file:

As mentioned here before, I am learning the Russian language. After completing all 30 lessons in Mark Thompson's "Russian Made Easy" video series on YouTube, I decided that it was time for some classroom training.

So, off to look at the University of Arizona website. I couldn't easily find any information about enrolling as a non-degree student, so I sent an email to the department where I'd be taking an intro Russian class.

Reply: In order to become a UA non-degree student, I would have to complete an online application. And pay a $45 application fee.

Nyet.

Instead of paying the UA 45 bucks just to apply, I could spend that same money on a vocabulary builder course, which is taught by a native Russian speaker. From her home in Moscow, she has built a global business as a language teacher. So, look out, Real Russian Club, here I come. Link:

https://realrussianclub.com/

anonymous , August 16, 2019 at 10:23 am

Arizona Slim, take a look at the free Russian language courses on Coursera.org. I've taken excellent Italian courses on EdX, but Coursera looks better now for conversational Russian. (EdX has a couple of classes on Russian for scientific work.) With foreign languages, the more practice and exposure, the better, so maybe Coursera could be useful in addition to your vocabulary builder course.

Arizona Slim , August 16, 2019 at 12:10 pm

Spasibo!

David Carl Grimes , August 16, 2019 at 11:48 am

I was wondering about the kids and parents who pay full freight for college. Can that cost ever be recouped? Even for top colleges? For instance, financial aid at Harvard maxes out at $110K in household income. So a high income family will have to pay full sticker price every year. Tuition and living expenses could be $70K per year or more. So a four year education could cost $280K to $350K. It's like buying a house in many parts of the country without buying a house. Yet the median salary for a Harvard graduate is $90K ten years after entering school (six years after graduation). If college costs are paid back in ten years, the college graduate will have to pay back $30K every year, on top of everything else. Not much left for savings, retirement, or a house. Even for Harvard College graduates.

Shiloh1 , August 16, 2019 at 12:01 pm

I love these articles. At no point is it ever questioned or addressed why cost of college has gone exponential relative to the real economy (taking out real estate and healthcare) since the late 1970s,

It is because "financial aid", especially loans, spends the same as cash. The colleges will charge what the market will bear, Econ 101,taking account the new money those loans bring into the picture, driving up the price. Colleges have no skin in the game for repayment / default of loans.

Sorry, but I am cool with the whole system collapsing into itself and my bank account sitting this one out.

Please spare me the club med, lazy river, climbing wall stories. FULL DISCLOSURE: I went to Illinois Institute of Technology in Chicago, a garden spot of the city between 31st and 35th and State Street off the Dan Ryan Expressway in the late 70s. The place is a bigger dump now when I went there, full salute to the Mies Van Der Rohe flat roof glass shoe boxes and the post WWII housing project-like dorms.

polecat , August 16, 2019 at 12:50 pm

Campus pizza and beer ain't cheap you know ..

Eudora Welty , August 16, 2019 at 9:39 pm

A friend invited me to lunch at the cafeteria in the university dorm building. Lunch was $11 50, but all-you-can-eat with a gourmet style, nice China tableware. I had pizza, hamburger , pasta al fredo, pudding, cookies, salad, soft drinks. Great opportunity to gain weight & spend $$$!

jrs , August 16, 2019 at 2:45 pm

well also probably due to both the decimation of the non-college job market, and credential inflation (a degree now being required for jobs it didn't use to be). of course college grads are now overproduced relative to demand as well.

Synoia , August 16, 2019 at 12:38 pm

I have some advice for the young with Student debt, as I have some acquaintances whose children have huge debts $400,000 to $600,000..

Emigrate. Don't look back.

polecat , August 16, 2019 at 12:58 pm

Here's an educational experiance one can endeavor : Enter your local thrift/antique establishment/yard sale/dump, etc. and pick an item – any item .. and figure out how to rebuild/repair/make serviceable said item. Presto ! THERE'S your future, waiting in the wings of regression !
Not a bad place to be actually .. beats high penury, no ?

inode_buddha , August 16, 2019 at 1:30 pm

My paleo-conservative dad likes to point out that student loans existed before the government started backing them. He took out a very large loan in 1950 to attend MIT in got his Masters there, PhD at SUNY Buffalo in 1970. He paid it off in 1985. Back then lending standards were based on reality and job market projections. When I went to school, all you had to do was fog a mirror Then in the 1990s prices started doubling and tripling, etcetc . Answer is to ban the government from backing loans, full stop.

Joe Well , August 16, 2019 at 2:21 pm

Or we could do what many other countries do and abolish tuition and fees.

chuck roast , August 16, 2019 at 1:39 pm

I have a bunch of hoops to jump through for that!
Here's what my hoops look like:
One of them cancels $50,000 in student loan debt for every person with household income under $100,000.
Another hoop provides substantial debt cancellation for every person with household income between $100,000 and $250,000. The $50,000 cancellation amount phases out by $1 for every $3 in income above $100,000, so, for example, a person with household income of $130,000 gets $40,000 in cancellation, while a person with household income of $160,000 gets $30,000 in cancellation. Pick you hoop!
I also have a non-hoop, hoop that offers no debt cancellation to people with household income above $250,000 (the top 5%).
For most Americans, cancellation will take place automatically using data already available to the federal government about income and outstanding student loan debt.
We also have a moving hoop private student loan debt is also eligible for cancellation, and the federal government will work with borrowers and the holders of this debt to provide relief.
And our final hoop. Canceled debt will not be taxed as income.
E. Warren (the Hoop Queen)

Joe Well , August 16, 2019 at 2:19 pm

Does anyone else find the idea that parents should pay for, and therefore have veto over, their adult children's college, offensively infantilizing?

jrs , August 16, 2019 at 2:26 pm

Well unless full room and board is paid for, that's how it ends up being though? I mean free tuition is simply not going to solve this, because how to pay for a roof over one's head while going to school?

1) live at the parents home and go to a nearby school, sure a bit infantalizing 2) get the bank of mom and dad to foot the dorm costs again mom and dad paying 3) take out debt for living expenses.

Haha, no you usually can't afford housing on or off campus (renting a room) with some low wage job!!! And if you had the capacity to get a well paying job without a degree (or other training) you might not be pursuing one anyway. Since a large number of students are homeless (actually true here, shocking numbers), I guess that's also an option.

shinola , August 16, 2019 at 3:31 pm

I'm surprised, this being NC, that no one has mentioned this yet – student debt is a modern form of indentured servitude.

While it does not directly tie the indebted (former) student to a single employer, it provides potential employers with leverage in regard to wages & working conditions. Quite simply, someone with a large debt hanging over their head is more likely to accept a job with lower pay, fewer raises and/or benefits than some someone who is debt-free and therefore can afford to be more picky, more demanding to be paid & treated decently.

Get 'em in more debt at an earlier age so they will be more docile and accepting of neoliberal crapification.

Anthony G Stegman , August 16, 2019 at 6:18 pm

At the same time it has become vastly more expensive a college degree has also become watered down and of less value. That is the true injustice. Many jobs that once required only a high school education now require a college degree. This is not because the job requirements have changed. This is due to the simple fact that many more people possess college diplomas, so employers now demand them for a greater number of occupations. However, the pay for these occupations has not risen to be commensurate with the additional costs incurred to gain the newly required credentials. Now these holders of costly credentials find themselves in a real bind. The author of this article offered no solutions.

[Aug 16, 2019] This Is How Epstein Manipulated Vulnerable Young Girls (And How You Can Protect Your Children From Predators)

Aug 16, 2019 | www.zerohedge.com

This Is How Epstein Manipulated Vulnerable Young Girls (And How You Can Protect Your Children From Predators)

by Tyler Durden Fri, 08/16/2019 - 18:25 0 SHARES

Authored by Daisy Luther via The Organic Prepper blog,

This article contains content that some may find distressing.

Jeffrey Epstein "was" apparently a serial molester of children. He had manipulation down to an art form, as many molesters do. He seemed to be an expert at figuring out a girl's weak point, whether it was poverty, a deceased family member, or feeling alienated from her peers.

This is a common ploy. Many molesters seek out children or teens who have lost a parent and use this as a way to build a friendship. Then, because children don't think like adults, they are manipulated, coerced, or threatened into sexual activity.

The story below could be told a hundred thousand times with only tiny changes. The names and the faces would be different. The settings might not be a mansion in Manhattan or in Palm Beach but rather a quiet part of a church, a school, or some kind of activity for teens. The setting could be in the house next door to you, where someone with evil intent befriends a vulnerable young person with the stated goal of helping them, but an end result that couldn't be further from reality.

How 14-year-old Jennifer Araoz met Jeffrey Epstein

Jennifer Araoz was 14 years old when she first met her future rapist, Jeffrey Epstein. She wrote about how she was manipulated, first by his recruiter, then by Epstein himself. There are many powerful lessons that we as parents can learn from her story.

During my freshman year, one of Epstein's recruiters, a stranger, approached me on the sidewalk outside my high school. Epstein never operated alone. He had a ring of enablers and surrounded himself with influential people. I was attending a performing arts school on the Upper East Side, studying musical theater. I wanted to be an actress and a singer. ( source )

Another report based on court documents says that the recruiter befriended Jennifer, took her out to eat after school a few times, and learned more about her, such as the fact that Jennifer's father had died from an AIDs-related illness and her family could barely scrape by financially.

The recruiter told me about a wealthy man she knew named Jeffrey Epstein. Meeting him would be beneficial, and he could introduce me to the right people for my career, she said. When I confided that I had recently lost my father and that my family was living on food stamps, she told me he was very caring and wanted to help us financially. ( source )

The recruiter finally got Jennifer to go with her to meet Epstein. Court documents say that they all three met together for the first month or so.

The visits during the first month felt benign, at least at the time. On my second visit, Epstein also gave me a digital camera as a gift. The visits were about one to two hours long and we would spend the time talking. After each visit, he or his secretary would hand me $300 in cash, supposedly to help my family. ( source )

Epstein claimed he was 'a big AIDS activist' which you can imagine would mean a lot to a 14-year-old whose father died of the disease.

Soon the visits would take a dark turn.

By the second month of Jennifer's visits to the mansion, the recruiter no longer attended the visits., the manipulation began in earnest.

But within about a month, he started asking me for massages and instructed me to take my top off. He said he would need to see my body if he was going to help me break into modeling. I felt uncomfortable and intimidated, but I did as he said. The assault escalated when, during these massages, he would flip over and sexually gratify himself and touch me inappropriately. For a little over a year, I went to Epstein's home once or twice a week.

After that day, I never went back. I also quit the performing arts school -- the one I had auditioned for and had wanted so badly to attend. It was too close to his house, the scene of so many crimes. I was too scared I would see him or his recruiter. So I transferred to another school in Queens close to my home. Since I was no longer able to pursue my dream of performing arts I eventually lost interest and dropped out. ( source )

Sure, we can say that she knew things weren't right when he asked her to take her top off. By this point, she was 15 years old. Old enough to know right from wrong. But if she was getting $300 twice a week and helping her family with it, it's pretty easy to see how she would want to continue helping her family despite her discomfort. Epstein knew exactly what he was doing.

Epstein's wealth, power, and connections would have made going against him seem like an insurmountable feat for a vulnerable 15-year-old girl who had recently lost her father. Who would have believed her word against that of this presumed philanthropist?

A few days ago, Jennifer, now 32, filed a massive lawsuit against Epstein's estate, Ghislaine Maxwell, and 3 members of Epstein's household staff. The complaint alleges that Maxwell and the staff "conspired with each other to make possible and otherwise facilitate the sexual abuse and rape of Plaintiff."

Some of Epstein's victims recruited new girls for him.

Epstein's indictment explains how he manipulated some of the girls he sexually abused to bring other girls to him.

Prosecutors say he lured underage girls, some as young as 14, to his residences, promising them a cash payment in exchange for giving him a massage. Instead, he would sexually abuse them -- groping them, making them touch him while he masturbated, and using sex toys on the minors. Then, he would allegedly ask them to recruit other girls. ( source )

A detailed report in the Miami Herald referred to it as a "sexual pyramid scheme." One of Epstein's accusers, Courtney Wild, reiterates the theme of the story told by Jennifer Boaz.

"Jeffrey preyed on girls who were in a bad way, girls who were basically homeless. He went after girls who he thought no one would listen to and he was right,'' said Courtney Wild, who was 14 when she met Epstein. ( source )

Courtney's time spent with Epstein nearly destroyed her.

Before she met Epstein, Courtney Wild was captain of the cheerleading squad, first trumpet in the band and an A-student at Lake Worth Middle School.

After she met Epstein, she was a stripper, a drug addict and an inmate at Gadsden Correctional Institution in Florida's Panhandle.

Wild still had braces on her teeth when she was introduced to him in 2002 at the age of 14.

She was fair, petite and slender, blonde and blue-eyed. ( source )

She began to recruit other girls for him in Palm Beach.

Wild said Epstein preferred girls who were white, appeared prepubescent and those who were easy to manipulate into going further each time

"By the time I was 16, I had probably brought him 70 to 80 girls who were all 14 and 15 years old. He was involved in my life for years," said Wild, who was released from prison in October after serving three years on drug charges.

The girls -- mostly 13 to 16 -- were lured to his pink waterfront mansion by Wild and other girls, who went to malls, house parties and other places where girls congregated, and told recruits that they could earn $200 to $300 to give a man -- Epstein -- a massage, according to an unredacted copy of the Palm Beach police investigation obtained by the Herald. ( source )

Epstein had it down to an art form.

Palm Beach police detective Joseph Recarey explains how Epstein insinuated himself into the girls' lives.

"The common interview with a girl went like this: 'I was brought there by so and so. I didn't feel comfortable with what happened, but I got paid well, so I was told if I didn't feel comfortable, I could bring someone else and still get paid,' '' Recarey said.

During the massage sessions, Recarey said Epstein would molest the girls, paying them premiums for engaging in oral sex and intercourse, and offering them a further bounty to find him more girls

Epstein could be a generous benefactor, Recarey said, buying his favored girls gifts. He might rent a car for a young girl to make it more convenient for her to stop by and cater to him. Once, he sent a bucket of roses to the local high school after one of his girls starred in a stage production. The floral-delivery instructions and a report card for one of the girls were discovered in a search of his mansion and trash. Police also obtained receipts for the rental cars and gifts, Recarey said.

Epstein counseled the girls about their schooling, and told them he would help them get into college, modeling school, fashion design or acting. At least two of Epstein's victims told police that they were in love with him, according to the police report. ( source )

You may look at these stories and scorn the victims. After all, they kept going back, didn't they? They liked the money, didn't they?

But they were children. Many of them were isolated, vulnerable, and without support systems. Many of them felt ashamed but didn't know how to extricate themselves. They were confused and scared, and Epstein was a pro at taking advantage of these emotions and doubts.

The girls are not to blame here. The adults are.

Epstein is not the only predator out there.

While this article focuses on how Epstein was able to lure so many victims, as Dagny Taggert recently wrote , there are many more people in power out there preying on children. Clergy, priests, teachers, neighbors, musicians, and random people on the internet are out there preying on and trafficking children.

Dagny wrote:

According to The National Center for Victims of Crime , the prevalence of child sexual abuse (CSA) is difficult to determine because it is often not reported. Experts agree that the incidence is far greater than what is reported to authorities.

Statistics below represent some of the research done on child sexual abuse.

The U.S. Department of Health and Human Services' Children's Bureau report Child Maltreatment 2010 found that 9.2% of victimized children were sexually assaulted (page 24).

Studies by David Finkelhor , Director of the Crimes Against Children Research Center , show that:

According to Darkness to Light , a non-profit committed to empowering adults to prevent child sexual abuse, only about one-third of child sexual abuse incidents are identified, and even fewer are reported .

The National Center for Missing and Exploited Children operates the CyberTipline , a national mechanism for the public and electronic service providers to report instances of suspected child sexual exploitation.

In 2018 the CyberTipline received more than 18.4 million reports, most of which related to:

Since its inception, the CyberTipline has received more than 48 million reports.

Those statistics are grim. ( source )

How do you keep your children safe?

When my children's father passed away, it wasn't too long afterward that I left my corporate job. I volunteered when the company began layoffs and took a small payment and my retirement fund to start a new life writing freelance. It wasn't long after that when I started this website.

I wanted to be home when they got back from school every day. I didn't want them to seem like prey to those looking for children with weak support systems. My own daughters could so easily have had a story like the one Jennifer has told.

I know that what I did is not possible for every family that suffers a loss. I was pretty fortunate to be able to find work from home that paid enough to allow me to be there.

What you, as a parent, must understand are the things that make your child seem vulnerable.

Some signs that your child could be getting abused or groomed.

Obviously, these lists are not comprehensive, nor are they sure signs of abuse. What teenager doesn't seem angry and withdrawn from time to time? But it's vital, no matter how hard they push you away, to stay involved, particularly after a traumatic event.

Here are some resources you may find helpful.

Teach your kids that some secrets should not be kept.

Predators manipulate children in all sorts of ways. One of the biggest ways is warning them to keep their "relationship" a secret or else.

Or else what?

Predators often put a burden on a child where they feel as though they must stay silent to protect the people they love.

Kids need to know that if anyone threatens them if they tell a secret, then they absolutely must tell that secret. Mom and Dad will be safe and will protect them. People who ask children to keep their presence in their lives a secret are never to be trusted.

And finally, make sure your children know that whatever they tell you, you will believe them and you know it's not their fault.

[Aug 15, 2019] Why the Rich Want to Bury Bernie, the Not-Really-Socialist

Notable quotes:
"... The reason the ruler's have decreed 'anybody but Bernie' is that Sanders' (and to a lesser perceived degree, Warren's) campaign proposals challenge the austerity regime that has been relentlessly erected since the 1970s precisely to set American workers and the whole capitalist world on a Race to the Bottom, in which each year brings lower living standards and more insecurity to the population at large. ..."
"... The obscene increases in wealth inequality are the desired result and true essence of austerity. ..."
"... "the top one-tenth of one percent (.1%) of the population -- households making $2.757 million a year -- now number almost 200,000 families, a cohort big enough to create and inhabit a large and coherent social world of its own. ..."
Aug 15, 2019 | www.nakedcapitalism.com

Sanders (D)(1): "Why the Rich Want to Bury Bernie, the Not-Really-Socialist" [Glen Ford, Black Agenda Report (CI)]. Really excellent.

Here's "why":

"The reason the ruler's have decreed 'anybody but Bernie' is that Sanders' (and to a lesser perceived degree, Warren's) campaign proposals challenge the austerity regime that has been relentlessly erected since the 1970s precisely to set American workers and the whole capitalist world on a Race to the Bottom, in which each year brings lower living standards and more insecurity to the population at large.

The obscene increases in wealth inequality are the desired result and true essence of austerity."

There's much more, but this on local oligarchies is important: "the top one-tenth of one percent (.1%) of the population -- households making $2.757 million a year -- now number almost 200,000 families, a cohort big enough to create and inhabit a large and coherent social world of its own.

From their rich enclaves in every state of the country, this formidable "base" of truly wealthy folks effectively dictate the politics of their regions for the benefit of themselves and the oligarchs at the top of the pyramid. "

[Aug 08, 2019] Revised Profit Data Are Good News But Don't Reverse Decades of Wage Stagnation

Notable quotes:
"... corporations were able to increase their share of income at the expense of labor, even with an unemployment rate below 4 percent. ..."
Aug 08, 2019 | economistsview.typepad.com

anne , August 05, 2019 at 11:03 AM

http://cepr.net/publications/op-eds-columns/revised-profit-data-are-good-news-but-don-t-reverse-decades-of-wage-stagnation

August 5, 2019

Revised Profit Data Are Good News But Don't Reverse Decades of Wage Stagnation
By Dean Baker

In July, the U.S. Department of Commerce released data showing GDP growth had slowed sharply in the second quarter. Most economic reporting appropriately highlighted the data showing that we were not getting the investment boom that the Republicans had promised would result from their tax cut.

But there was also an important item in the annual GDP data revisions that many overlooked in the report: The revised profit data for 2018 showed that the profit share of corporate income had fallen by 0.4 percentage points from the prior year. This is a big deal for two reasons: It means that workers are now clearly getting their share of the gains from growth, and it tells us an important story about the structure of the economy.

On the first point, we know that the wages of the typical worker have not kept pace with productivity growth over the last four decades. While productivity growth has not been great over most of this period (1995-2005 was the exception), wages have lagged behind even the slow productivity growth over most of this period.

The one exception was the years of low unemployment from 1996 to 2001, when the wages of the typical worker rose in line with productivity growth. With unemployment again falling to relatively low levels in the last four years, many of us expected that wages would again be keeping pace with productivity growth.

The earlier data on profits suggested that this might not be the case. It showed a small increase in the profit share of corporate income, suggesting that corporations were able to increase their share of income at the expense of labor, even with an unemployment rate below 4 percent.

The revised data indicate this is not the case. The low unemployment rate is creating an environment in which workers have enough bargaining power to get their share of productivity gains and even gain back some of the income share lost in the Great Recession.

This brings up the second issue. Most of the upward redistribution over this period was not from ordinary workers to profits, but rather to high-end workers. The big winners in the last four decades have been CEOs, hedge fund and private equity partners, and at a somewhat lower level, highly paid professionals like doctors and dentists.

The shift to profits takes place only in this century after much of the upward redistribution had already occurred. One obvious explanation was the weak labor market following the Great Recession. With unemployment remaining stubbornly high, wages were not keeping pace with productivity growth or even inflation. An alternative explanation was that growing monopolization of major sectors (think of Google, Facebook and Amazon) was allowing capital to gain at the expense of labor.

The revised profit data seem to support the first story. In the last four years, the profit share has fallen by 3.2 percentage points. (It had dropped another percentage point in the first quarter of 2019, although the quarterly data are highly erratic.) At this rate, in four more years, the run-up in profit shares in this century will be completely reversed.

If the weak labor market following the Great Recession is the story of the rise in profit shares, there is still the problem of the run-up in profit share in 2003-2007, the years preceding the Great Recession. One explanation is that the profits recorded in these years were inflated by phony profits recorded by the financial sector.

Banks like Citigroup and Bank of America were recording large profits in these years on loans that subsequently went bad. This would be equivalent to a business booking large profits on sales to customers that did not exist. Their books would show large profits when the sales were recorded, but then they would show large losses when the business had to acknowledge that the customer didn't exist, and therefore write off a previously booked sale.

Profits that are based on sales to nonexistent customers don't come at the expense of workers, nor do profits that are booked on loans that go bad. (The subsequent recession was, of course, very much at the expense of workers.) For this reason, we should be somewhat skeptical of the shift from wages to profits in the years of the housing bubble.

In any case, the revised profits data are good news. They show a tight labor market is working the way it is supposed to. But this doesn't mean everyone is doing great. You don't reverse four decades of wage stagnation with four relatively good years.

However, things are at least moving in the right direction now, and that is good news. That has not generally been the case over the last 40 years.

[Aug 06, 2019] Do you see how the caste system works in India? Same thing in US -- we have 4 castes.

Aug 06, 2019 | economistsview.typepad.com

Iohannes Livingston Seagull said in reply to Fred C. Dobbs... , August 03, 2019 at 01:18 PM

Joe Biden as a front-runner.
"

the upwardly-mobile are the voice for those left behind. do you see how the caste system works in India?

4 castes! same thing in US. we have 4 castes.

1. we have billionaires,

2. then we have the multi-millionaires those who have more than 50 million dollars per household but not as much as 1 billion,

3. then we have the millionaires who have more than 1 million dollars but not 50 million dollars

4. then we have everyone else, the poor, We the People if you like, We the 89%,

how can we prevent upward Mobility?

Ahh! Very simple! all we have to do is tax people back down to their own level; in other words, if we can simply tax the Billionaire's at a rate which is equal to 2% of the net worth each year, but tax poor people at a rate of 7% of their net worth each year then we can prevent upward Mobility. do you see how easy that is?

whoops we don't even have to do that. according to Elizabeth Warren we are doing that already. we can relax now.

was Joe Biden presiding over the Senate when all that ground work was being done on the tax code so that we don't have to do any of that anymore? well bless his bones! senile as he is, he was right there with it when we needed him the most.

I'm voting for Uncle Joe. hell! he's not

creepy; he is a
visionary
.!

[Aug 03, 2019] State and Local Taxes Are Worsening Inequality

Aug 03, 2019 | economistsview.typepad.com

anne , July 23, 2019 at 02:55 PM

https://www.nytimes.com/2019/07/20/opinion/sunday/inequality-taxes.html

July 20, 2019

State and Local Taxes Are Worsening Inequality

Most states lean heavily on lower-income families. An Illinois referendum is a step toward correcting the problem.

Economic inequality is on the rise in Illinois, and the state government is part of the problem. Illinois taxes low-income families at much higher rates than high-income families, asking the most of those who have the least.

Low-income households in Illinois pay about 14 cents in state and local taxes from every dollar of income, while the state's most affluent households pay about 7 cents per dollar.

That gap between the poor and the wealthy in Illinois is one of the largest in any state, but the poor pay taxes at higher rates in 45 of the 50 states, according to a 2018 study * by the Institute on Taxation and Economic Policy.

It's a bipartisan phenomenon. The institute's list of the 10 states with the most regressive tax systems -- the states doing the most to increase inequality through taxation -- also includes conservative Tennessee and Texas, purple Nevada and Florida, and liberal Washington.

Now Illinois is trying to take its name off the list. The state plans to hold a referendum next year on a constitutional amendment that would authorize the state to tax higher incomes at progressively higher rates -- the system used by the federal government and 32 states.

Illinois currently taxes income at a flat rate of 4.95 percent. Under the proposed system, income below $100,000 would be taxed at a slightly lower rate. Income up to $250,000 would be taxed at the current rate. And income above that amount would be taxed at rates of up to 7.99 percent. There is also a kind of millionaire's tax: Individuals making more than $750,000, or couples making more than $1 million, would pay the 7.99 percent rate on all their income.

Moving Toward Tax Fairness

Illinois will hold a referendum next year on replacing its flat income tax with a system requiring higher-income households to pay higher rates. Even including sales and property taxes, the rich still would pay a smaller share of income in state and local taxes than lower-income people.

Economic inequality in the United States has reached the highest levels since the 1920s, and there is mounting evidence that the unequal distribution of income and wealth is contributing to the nation's economic and political problems. Reducing inequality ought to be a focus of public policy. Rewriting state tax laws to place the greater burden on those with greater means is an effective and sensible response.

Taxation in the United States remains progressive because the federal income tax remains the largest source of government revenue. But the distribution of the total burden has become much less progressive. In 1961, Americans with the highest incomes paid an average of 51.5 percent of that income in federal, state and local taxes. Half a century later, in 2011, Americans with the highest incomes paid just 33.2 percent of their income in taxes, according to a study ** by Thomas Piketty, Emmanuel Saez and Gabriel Zucman published last year. Over that same period, the bottom 90 percent of Americans, ranked by income, saw their tax burden increase from 22.3 percent of income to 26 percent of income.

Tax Cuts for the Affluent, More Taxes for Everyone Else

Over 50 years, federal tax cuts reduced the overall burden on the well-to-do, while others paid more because of increases in federal payroll taxation, and in state and local taxes.

(Since 2011, federal income taxation has increased under President Barack Obama and declined under President Trump. Data on the full impact of those countervailing changes is not yet available.)

The headline problem is that Congress sharply reduced taxation of the wealthy, cutting top income tax rates as well as corporate and estate taxation.

Meanwhile, the tax burden on everyone else has increased. One reason is the gradual rise of federal payroll taxation, the flat-rate income tax that provides funding for Social Security and Medicare. The Social Security tax is particularly regressive because it applies only to income up to $132,900. The relative scale of state and local taxation also has risen, partly because the federal government increasingly funds its operations with borrowed money rather than tax dollars.

State and local governments rely heavily on sales and property taxes, which impose a greater burden on less affluent households because wealthier people typically spend a smaller share of income on food, housing and other forms of consumption. In roughly one-third of states, this effect is partly offset by progressive income taxation. But even in most of those states, the overall burden still falls more heavily on those with lower incomes. Only a handful of states -- California, Delaware, Minnesota, New Jersey and Vermont -- and the District of Columbia have written their tax laws so that those with the highest incomes pay the largest share of their incomes.

The Illinois plan is a step in the right direction rather than a complete corrective. Under current law, households in the bottom quintile of the income distribution pay 14.4 percent of their income in taxes on average, while those in the top 1 percent pay 7.4 percent of their income in taxes -- a difference of 7 percentage points. The proposed changes in the income tax would cut that gap to 4.3 percentage points, according to the Institute on Taxation and Economic Policy.

Illinois is seeking to address longstanding fiscal problems, notably an underfunded pension system, so it is raising taxes on the rich without significantly reducing taxes for everyone else. Other states, however, could do better by raising taxes on the rich and using the money to reduce the taxation of low-income families.

Opponents of progressive taxation warn that wealthy people and businesses will flee to other states, and that those with the most money are the most mobile. People can vote with their feet, and some do prefer low-tax states like Florida. But a quick look at the list of states with progressive tax structures should make clear that plenty of rich people choose to stay put.

Indeed, the Cornell sociologist Cristobal Young has calculated that people with million-dollar incomes move across state lines less often than other Americans. They are more likely to be married, more likely to have children, more likely to be involved in civic and social groups -- and, in many cases, their wealth stems from their communities. A successful Springfield dentist cannot relocate her patients to Missouri. A man who owns a chain of gas stations around Peoria is likely to remain in Peoria. A company that relies on Chicago's highly educated work force may not be focused on finding the place with the lowest tax rates.

The potential cost of losing a few millionaires also needs to be weighed against the benefits of equitable taxation. By imposing a somewhat larger burden on high-income households, states can significantly improve the material circumstances of lower-income households and slow the troubling expansion of economic inequality.

At the very least, states ought to stop making things worse.

* https://itep.org/wp-content/uploads/whopays-ITEP-2018.pdf

** https://www.nber.org/papers/w22945.pdf

[Jul 31, 2019] Is Hiring Broken?

Notable quotes:
"... For example, as a Stanford graduate he nonetheless argues that "The skills required for getting into Stanford at 17 (extracurriculars, SAT prep etc) do not correlate to job success as a software developer ..."
"... How good a student you were at 17, is not very relevant to who you are at 25." References are flawed because "People will only ever list references who will say good things about them," and they ultimately punish people who've had bad managers. But asking for source code from past sides projects penalizes people with other interests or family, while "most work product is confidential." ..."
Jul 31, 2019 | it.slashdot.org

(rajivprab.com) 391

Posted by EditorDavid on Sunday July 28, 2019 @06:34AM from the if-it-is-broke-fix-it dept. DevNull127 writes: Hiring is broken and yours is too," argues a New York-based software developer whose LinkedIn profile says he's worked at both Amazon and Google, as well as doing architecture verification work for both Oracle and Intel. Summarizing what he's read about hiring just this year in numerous online articles, he lists out the arguments against virtually every popular hiring metric , ultimately concluding that "Until and unless someone does a rigorous scientific study evaluating different interviewing techniques, preferably using a double-blind randomized trial, there's no point in beating this dead horse further. Everyone's hiring practices are broken, and yours aren't any better."

For example, as a Stanford graduate he nonetheless argues that "The skills required for getting into Stanford at 17 (extracurriculars, SAT prep etc) do not correlate to job success as a software developer.

How good a student you were at 17, is not very relevant to who you are at 25." References are flawed because "People will only ever list references who will say good things about them," and they ultimately punish people who've had bad managers. But asking for source code from past sides projects penalizes people with other interests or family, while "most work product is confidential."

Brain teasers "rely on you being lucky enough to get a flash of inspiration, or you having heard it before," and are "not directly related to programming. Even Google says it is useless ." And live-coding exercises are "artificial and contrived," and "not reflective of practical coding," while pair programming is unrealistic, with the difficulty of the tasks varying from day to day.

He ultimately criticizes the ongoing discussion for publicizing the problems but not the solutions. "How exactly should we weigh the various pros and cons against each other and actually pick a solution? Maybe we could maybe try something novel like data crunch the effectiveness of each technique, or do some randomized experiments to measure the efficacy of each approach? Lol, j/k. Ain't nobody got time for that!"

[Jul 20, 2019] Love Literature Stay Away From Grad School

Notable quotes:
"... And ultimately, this is why I can't blame graduate students for figuring out that they need to be technocrats in order to survive. The job market is tough, there are very few tenure-track jobs available, and the people who make it are the people who don't do History for the love of it but who do it like...a career. ..."
Jul 20, 2019 | www.theamericanconservative.com

Right now, for a creative or artistic or even just a curious person, I think over-exposure to academia is intellectual and spiritual poison.

But I should qualify that disillusionment by saying that academia also saved me. If I hadn't read Franz Kafka in community college and discovered (to my utter shock) that I had a gift for writing poetry in my first creative writing class, I have no idea what kind of bad roads I would've wandered down. So my disillusionment with academia was gradual and fairly late.

I can maybe explain if you'll indulge a mini-narrative of my academic career. After community college, I went to a very conservative Christian college in the Missouri Ozarks. It was a school for working class kids where you worked on campus to pay for your tuition and room and board. So for most students it was our one realistic chance at a full college education without crushing debt.

So, no matter how crazy the school's politics got in our eyes, we felt like we were stuck there. But when I was a student, the college also had a great English faculty who turned us on to William Butler Yeats, Flannery O'Connor, Gabriel Garcia Marquez, Emily Dickinson, Faulkner, Hemingway. There was also a healthy theater department.

Little by little, my handful of weirdo artsy friends and I learned how to creatively thrive without institutional sanction or ideological kinship with our hyper-conservative college.

After my undergrad education, I went to the University of Arkansas's MFA program in creative writing to study poetry. And that was pretty amazing in its own feral way. I connected with this great generation of old school Southern writers in Arkansas, though that generation began phasing out during my four years in the program. They started getting replaced by writers who were more slick, more credentialed, more politically astute, less problematic but also infinitely less interesting than the generation that preceded them. [Emphasis mine -- RD]

... So I think my issues are less with Duke or that particular English department and more with this emerging academic generation, which to me seems to double-down on the older generation's worst trait (ideological certainty) while skimping out on its greatest strengths (genuine erudition and intellectual curiosity). As an academic, I generally felt like as soon as the older professors retired, I was going to be surrounded by people who all read the same ten theorists and who uniformly had pretty banal tastes in literature and who were all frothing to cancel and leap-frog each other into eternity and/or tenure. [Emphasis mine -- RD]


Peter 14 hours ago

If Cambridge decolonizes its curriculum then our heritage will be preserved at places like the College of the Ozarks.

I had a very similar experience in my PhD program, mine was in History. I did an MA in London and loved every minute of it. It was designed as a very international program, and I have so many fond memories of sitting in pubs after our seminars arguing in a good natured way about the topic of the day, and I thought "this is what I want to do with my life!" But graduate work for a career in academia is nothing like that. People have to specialize, and so you find quickly that in a room full of PhD candidate historians there is actually not that much to talk about because everyone's silo is so specific and so different. Politics plays a role too, I suppose. I was free to be an out and proud conservative in my MA program.

I did not feel that freedom in my PhD program, where you need good professional relationships in order to have a chance at a job.

And ultimately, this is why I can't blame graduate students for figuring out that they need to be technocrats in order to survive. The job market is tough, there are very few tenure-track jobs available, and the people who make it are the people who don't do History for the love of it but who do it like...a career.

Which is what they want it to be. They had the right approach and I had the romantic, and wrong, approach. It's not their fault. Being one of the few to carve out a career in such an industry takes determination and not a little joyless professionalism. If you aren't ready to turn your passion into a business, don't go to graduate school.

David J. White Peter 10 hours ago
I noticed when I was in graduate school in the 80s that one thing that seemed to characterize many of the students and professors in literature-oriented fields -- particularly Comp Lit -- was that they didn't really seem to enjoy reading very much. I'm not sure they were even capable anymore of just sitting and reading a book purely for enjoyment with trying to mine it for nuggets to support their pet theory.
Adamant 13 hours ago
"If you deeply love art or books or music, I really believe the last thing you should do is pursue a graduate degree studying that thing you love. "

They will beat that love right out of you, replace it with vapid ideology, and you'll never love those things with the same wide-eyed innocence as before.

This is unfortunate, as a cooler, more mature perspective on art is something we should all try to cultivate. But critique as murder + autopsy is the order of the day.

My American poetry professor in college (a proper reactionary, he spoke without irony of 'the War of Northern Aggression) inoculated me against 'interrogating the text' in the way the modern academy trains its cadres to do.

[Jul 01, 2019] Biden was a strong backer of a 2005 bankruptcy "reform" law that made it harder for people to file personal bankruptcy and to wipe out all of their debts by Keith Hoeller

Jul 01, 2019 | www.counterpunch.org

Just in time for the 2020 presidential election, the Democrats have discovered that there is real economic inequality in the United States. But they have not yet fully addressed the role that the Democratic party and its leaders have played in creating this vast inequality that led to the election of President Donald Trump in 2016.

The presidential candidates have been slow to fully recognize the role that former President Bill Clinton's globalization policies (NAFTA and WTO) played in the outsourcing of American jobs or the lowering of wages for workers.

As the Democratic presidential debates have shown, Vice President Biden is having a hard time defending his long public record, especially as an opponent of federally mandated "forced" busing to integrate our public schools decades after the Supreme Court's overturning of racial segregation in Brown v. Board of Education (1954). As a Senator Joe Biden was a free trade advocate as well.

But Senator Biden played a large role in creating inequality in two additional realms. He was a strong backer of a 2005 bankruptcy "reform" law that made it harder for people to file personal bankruptcy and to wipe out all of their debts. Given that perhaps as many as fifty percent of all personal bankruptcies in America are caused by debt incurred from health care not covered by insurance, this was an especially cruel blow to those seeking relief from their heavy debt loads.

Senator Warren has already criticized Biden for his support of this bill (" The Twenty Year Argument Between Joe Biden and Elizabeth Warren Over Bankruptcy, Explained ")

In "' Lock the S.O.B.s Up: Joe Biden and the Era of Mass Incarceration ," The New York Times documents his decades-long support of tough on criminals legislation, culminating in the 1994 Violent Crime Control and Law Enforcement Act. This bill, signed into law by President Clinton, has been blamed for the jailing of high numbers of African Americans and other minorities, in particular.

Unlike the Republicans whose goal is to increase inequality by lowering taxes on the wealthy, at least the Democrats seem sincere about reducing it. To do this, they have fallen all over themselves to offer free college tuition and to reduce student loan debt. Sen. Bernie Sanders recently proposed to eliminate all student loans entirely .

Why have Democrats focused on college as a means of solving economic inequality? Statistics have shown that in general the more education you have, the higher your lifetime earnings will be. For example, men with bachelor's degrees earn nearly a million more dollars in median lifetime earnings than high school graduates.

[Jul 01, 2019] The Real College Inequality Democrats Have Yet to Address by Keith Hoeller

Notable quotes:
"... As Curtis notes, full-time salaries are only one part of the faculty salary picture. Curtis' own research for the AAUP (published as an appendix to my Equality for Contingent Faculty documents that only twenty-five percent of professors now teach on the tenure-track, and only sixteen percent have tenure. Seventy-five percent of all college professors, one million in total, teach off the tenure-track, with fifty percent of all professors teaching part-time. ..."
"... While "free trade" agreements encouraged the closing of American factories and the loss of millions of American jobs, colleges and universities instituted their own brand of wage theft called by adjunct Ron Swift "inside-outsourcing." Even though the number of students was increasing, the colleges staunched the number of well-paid, secure, full-time tenure-track positions. They met rising enrollments by staffing classrooms with "contingent" faculty who teach off the tenure-track without the protections for free speech afforded their tenured brothers and sisters. ..."
"... The colleges save money by refusing to pay these contingent professors a living wage, in flagrant violation of the principle of equal pay for equal work. They are paid on a completely separate and lower pay scale than their full-time counterparts are paid for teaching the very same courses; they are paid on average only about fifty percent of what a full-timer would earn for teaching the same number of courses. See my " The Wal-Martization of Higher Education: How Young Professors Are Getting Screwed "). ..."
"... In " The Ph.D. Now Comes with Food Stamps ," the Chronicle of Higher Education has documented hundreds of thousands of people with graduate degrees receiving some form of public assistance, many of them contingent faculty. ..."
Jul 01, 2019 | www.counterpunch.org
So are the Democrats right to try and solve the equality problem by making college more affordable, with tuition perhaps free? Or are these proposals simply the current version of the Herbert Hoover's 1928 Presidential campaign where he literally offered voters " A chicken for every pot."

But before we go spending trillions of dollars on college tuition and eliminating student debt, shouldn't we ask: What has been driving up the cost of attending college over the past few decades leading to the current lack of affordable college options?

In his run for re-election as Vice President in 2012, Joe Biden made clear that he blamed college professors' high salaries for the skyrocketing costs of tuition. This was an astonishing charge, especially given that his wife has long been a college professor. He was immediately admonished by faculty groups around the country. " Faculty Groups Try to Educate Biden on Salaries ".

John Curtis, former Director of Research for the American Association of University Professors, wrote a rebuttal to Biden on January 18, 2012. He took issue with Biden's claim, pointing out that full-time faculty salaries have been stagnant for a number of years. He noted that tuition rates, in contrast, had risen "between three and fourteen times as fast as full-time faculty salaries." (underlining added)

Curtis also cites " Trends in College Spending 1998-2008 by the Delta Project on Postsecondary Education Costs, Productivity and Accountability ," which documented decreased spending on college teaching in favor of administration even before the Great Recession and wrote, "The common myth that spending on faculty is responsible for continuing cost escalation is not true."

As Curtis notes, full-time salaries are only one part of the faculty salary picture. Curtis' own research for the AAUP (published as an appendix to my Equality for Contingent Faculty documents that only twenty-five percent of professors now teach on the tenure-track, and only sixteen percent have tenure. Seventy-five percent of all college professors, one million in total, teach off the tenure-track, with fifty percent of all professors teaching part-time.

While "free trade" agreements encouraged the closing of American factories and the loss of millions of American jobs, colleges and universities instituted their own brand of wage theft called by adjunct Ron Swift "inside-outsourcing." Even though the number of students was increasing, the colleges staunched the number of well-paid, secure, full-time tenure-track positions. They met rising enrollments by staffing classrooms with "contingent" faculty who teach off the tenure-track without the protections for free speech afforded their tenured brothers and sisters.

The colleges save money by refusing to pay these contingent professors a living wage, in flagrant violation of the principle of equal pay for equal work. They are paid on a completely separate and lower pay scale than their full-time counterparts are paid for teaching the very same courses; they are paid on average only about fifty percent of what a full-timer would earn for teaching the same number of courses. See my " The Wal-Martization of Higher Education: How Young Professors Are Getting Screwed ").

In other words, though women are still paid only 82% percent of what men earn for doing the same work, with black men earning only 73% and Hispanics only 69%, most adjunct professors are paid at most 50% of what tenure-track faculty earn for teaching the same course.

Though possessing Master's and Doctorates and tens of thousands of dollars in student loans, these college professors are not being paid for all of the hours they work outside of class preparing lectures, grading tests, and meeting with students. They often do not even have offices. Their work schedule is capped below full-time so they will not qualify for tenure. Their work varies from quarter to quarter and they are often denied unemployment when they are in fact unemployed. The adjuncts and other contingent professors usually do not have any health insurance or retirement benefits

In " The Ph.D. Now Comes with Food Stamps ," the Chronicle of Higher Education has documented hundreds of thousands of people with graduate degrees receiving some form of public assistance, many of them contingent faculty.

The treatment between the two tiers is so disparate that I have called it "faculty apartheid" because the tenure-track few control and dominate the contingent many. Indeed, the tenured faculty often serve as the direct supervisors of the contingents. I have called the kind of discrimination that exists in higher education "tenurism," the baseless but widespread stereotype that the tenured faculty are superior and warrant higher pay and better treatment and than the non-tenure-track faculty. (see my " Against Tenurism ").

In an interview with Shankar Vedantam on the NPR show "The Hidden Brain," Raj Chetty, a Harvard economist who has done research on inequality in education, says the best solution is to have "the best teachers in American classrooms."

But we are far from that solution, with the majority of the U.S. higher education teaching force earning much less than the vaunted $15 an hour minimum wage recommended by nearly all of the Democratic candidates. These contingent faculty are "apprentices to nowhere" with little realistic hope of escaping the academic ghetto as the contingents far outnumber the dwindling number of tenure-track professors.

But don't' the Democrats have a tight relation with the faculty unions (American Association of University Professors, American Federation of Teachers, and the National Education Association)? Yes, they do. But the unions themselves have collectively bargained the contingents into poverty and income insecurity. The two-tier system exists within the unions too, which have long been run by and for the tenure-track faculty; these unions clearly have not apprised the Democrats of these inequalities, let alone insist they solve them.

Will the Democrats insist that these unions, upon whom they are so dependent for money and campaign workers, treat all of their members equally? Or will they continue to look the other way in order to keep union money flowing into their campaign coffers.

Will the Democrats insist that these colleges, upon whom they wish to build an equal society, treat their professors equally and offer them the same opportunities for a better life that they are offering their students?

If politicians are going to solve a problem, they must first have a clear diagnosis before offering a treatment. Before the Democrats spend tax money on free tuition and paying off student loans, they need to acknowledge the income disparity among the professoriate and make solving it an equal priority.

Keith Hoeller is the co-founder of the Washington Part-Time Faculty Association and editor of Equality for Contingent Faculty: Overcoming the Two-Tier System (Vanderbilt University Press).

[Jun 29, 2019] Millennials Blame Unprecedented Burnout Rates On Work, Debt Finances

Jun 29, 2019 | www.zerohedge.com

The issue of Millennial 'burnout' has been an especially hot topic in recent years - and not just because the election of President Trump ushered in an epidemic of co-occurring TDS (Trump Derangement Syndrome) that sent millions of American twenty somethings on a never-ending quest for a post-grad 'safe space'.

For those who aren't familiar with the subject, the World Health Organization recently described burnout as "a syndrome conceptualized as resulting from chronic workplace stress that has not been successfully managed." As birth rates plunge and so-called deaths from despair (suicides and overdoses) climb, sending the US left expectancy lower for multiple consecutive years for the first time since the 1960s, many researchers see solving the problem of burnout as critical to fixing many of our societal issues.

To try and dig deeper into the causes and impact of millennial burnout, Yellowbrick , a national psychiatric organization, surveyed 2,000 millennials to identify what exactly is making a staggering 96% of the generation comprising the largest cohort of the American labor force say they feel "burned out" on a daily basis.

The answer is, unsurprisingly, finances and debt: These are the leading causes of burnout (and one reason why Bernie Sanders latest proposal to wipe out all $1.6 trillion in outstanding student debt might be more popular with millennial voters than many other Americans realize).

Anthony Aaron , 1 hour ago link

The average student loan is $30,000

At 6% interest with a 6-year amortization, that works out to monthly payments of $497 -- about what many of these folks spend on eating at restaurants or on tattoos or on drugs per month.

It's a matter or priority -- and repaying the student loans isn't a priority for them which is why a report in '17 showed that at 7 years after graduation, more than 45% of them hadn't paid even one dollar of principle on their student loans.

Deadbeats whiners

kikrlbs , 1 hour ago link

This is becoming exhausting. The boomers and the like simply don't want to admit that it is much harder today making ends meet than it was when they were younger. That is a fact, inflation and asset inflation has made the value of a dollar half of what is was 40 years ago. Meaning, you would have to work 80 hours in today's money to match 40 hours in money from the late 70's. Now, millenials don't get off easy either because they think they deserve that same standard and since it does not and cannot exist in our monetary system, they try to usurp personal responsibility, at any level, by finger pointing and apathy. Our society is slowly collapsing.

[Jun 29, 2019] A Look at the Poor People's Campaign Theology and Ideology

Jun 28, 2019 | www.nakedcapitalism.com

... ... ...

Unlike Occupy, then, Barber has demands, both policy and geographical. Barber and Theoharis, having convened the "the first-ever Poor People's Moral Action Congress," write in The Hill , on policy:

We will present a national moral budget, outlining a plan to pay for real, systemic change as well a challenge to the lie of scarcity. And poor people who haven't seen a place for them in American public life will testify before the House Budget Committee, in a hearing to share their stories and address what the federal government can and must do now to address the real issues affecting everyday Americans.

And on geography:

We are building coalitions among poor people who are too often pitted against one another by the divide-and-conquer tactics of the Southern Strategy. In the so-called "red-states" of the South and Midwest, we are organizing people into a movement who will vote, take action and challenge the assumptions of candidates from both parties. We are organizing across race and other lines that too often divide us and lifting up and deepening the leadership of those most affected by systemic racism, poverty, the war economy and ecological devastation.

(Note that this strategy is very, very different from the strategy of liberal Democrats, who tend to regard citizens outside their coastal enclaves as " deplorables ," or as "bitter" people who "cling to guns and religion," and leave it at that.) Here is an extract from the PPC's "Moral Budget," created together with the Institute of Policy Studies (PDF):

The United States has abundant resources for an economic revival that will move towards establishing a moral economy. This report identifies:

$350 billion in annual military spending cuts that would make the nation and the world more secure; $886 billion in estimated annual revenue from fair taxes on the wealthy, corporations, and Wall Street; and Billions more in savings from ending mass incarceration, addressing climate change, and meeting other key campaign demands.

The below comparisons demonstrate that policymakers have always found resources for their true priorities. It is critical that policymakers redirect these resources to establish justice and to prioritize the general welfare instead. The abundant wealth of this nation is produced by millions of people, workers, and families in this country and around the world. The fruits of their labor should be devoted to securing their basic needs and creating the conditions for them to thrive. At the same time, policymakers should not tie their hands with "pay-as-you-go" restrictions that require every dime of new spending to be offset with expenditure cuts or new revenue, especially given the enormous long-term benefits of most of our proposals. The cost of inaction is simply too great.

I think the left could get behind all of this (though sadly, MMT is not explicitly included, though it's certainly righteous to cripple PayGo).

So why can't we have nice things? The budget concludes on page 115:

For too long, we have turned to those with wealth and power to solve our most pressing social problems. We have been led to believe that those in positions of influence and authority will use the resources at hand in the best possible way for the betterment of our society. This orientation has justified tax cuts for the wealthy and corporations and work requirements for the poor; it has secured environmental shortcuts for industry and military expansion around the world; and it has yielded very little for the 140 million people in this country who are still poor and struggling to meet their needs.

This is not an argument for charity or goodwill to the poor. It is, rather, a simple recognition that the poor are not only victims of injustice, but agents of profound social change. Rather than following the direction and leadership of the wealthy and powerful, it is time to follow the direction and leadership of the poor. Indeed, if we organize our resources around the needs of the 140 million, this Budget shows that we will strengthen our society as a whole.

This is why the Poor People's Campaign: A National Call for Moral Revival continues to organize and build power among the poor today. It understands that those who have been cast out of the economy and who are living on the few remaining crumbs of its meager offerings are also articulating a way out of this wretched existence -- not just for themselves, but for us all.

That's the stuff to give the troops! If I have a criticism of PPC (and the budget) it's that who "those with wealth and power" might be is not crisply articulated (unlike, for example, " the billionaire class "). At this point, I realize I've shifted from saying the left should give an account to the PPC to saying that the PPC should give an account to the left. Be that as it may, Barber tweets:

... ... ...

Well, those Democrats who talk about "working people" use that phrase -- "working families" seems to have, mirabile dictu , vanished from the discourse -- probably started doing so only recently, having been pressured from their left, and as a replacement for "working class"; they don't take their bourbon neat, that is, but watered down. And yes, they may be scared of the "free stuff" argument that liberal Democrats deploy against the left. However, I think the left (very much as opposed to liberals) would view "the poor" as a subset of the working class, those who are coerced sell or give their labor to survive (forgive the crudity of this ahistorical analysis). If indeed the PPC/DSA/left are to move beyond a relationship of "endorsing partners" to something akin to co-operation, both tactical and strategic, then distinctions like this are going to have to be hashed out. For example, Barber tweets:

... ... ...

"Policy murder" is brilliant framing (and would provide one account of elite behavior on climate change). However, who is the murderer? Barber says "a legislator." But if you believe -- as most of the left does, and (I would say) most liberals do not, especially donor-dependent NGOs -- that we live in an oligarchy, then the murderer is not the legislator, but the person who hired or owns the legislator: Much more often than not, when all the threads are traced down, a billionaire. The billionaire class is surely composed of great sinners. And every billionaire is a policy failure , just as surely as every slaveowner was. Should this be hard to say? Should we not seek to remove the systemic occasion of sin?



Henry Moon Pie , , June 28, 2019 at 4:40 pm

This kind of discussion is something that is badly needed on the Left. Rev. Barber is doing an excellent job of making a class-based argument for reform based on Protestant theology. It's a matter of shame for American Protestantism that more pastors in affluent suburban congregations and mega-churches are not doing the same.

That said, the persuasiveness of Christian theology is shrinking, not growing. Other voices from other spiritual traditions are needed who can articulate the connections between their non-Abrahamic frames of reference and the suffering of the poor and the sacredness of the Earth and its creatures. This is especially true for making the case to the young who are constantly bombarded with materialism and individualism on the one side and find patriarchal religion on the other side too much to swallow, especially given the historical realities of how those patriarchal religions have conducted themselves in the past. That's one reason why I find Marianne Williamson's presence in the debates to be refreshing. At least she's bringing spirituality to the conversation where it's usually absent except for cliches.

I also think that James Fowler's stages of faith analysis is useful for understanding the impact of one's "faith" and political views. His argument is that everyone lives by "faith," which he defines as a worldview through which we encounter and interpret life and its experiences. The critical difference is not the content of the "faith" but the maturity level of the individual's faith development. My recent explorations of the thought of Gary Snyder, a counterculture, Peyote using Buddhist/animist, and Wendell Berry, a Kentucky born-and-raised Protestant, reveals that the contents of "faith" of each is very different -- they argue about it frequently -- but their way of interacting with the world and their fellow human beings is essentially the same because they both have a high level of spiritual maturity. In Fowler's system, both are at top of the pyramid.

The divisive encounters we have with others about spiritual matters are often more a result of differing levels of spiritual maturity than the content of the faith. The close-minded Fundamentalist reflexively citing Bible verses rather than truly engaging in dialog is someone who has not moved beyond the level of faith maturity achieved upon junior high confirmation training in a tradition. The sort of person who runs through an Eschaton thread repeating "THERE IS NO GOD!!!!!" over and over again has moved beyond the indoctrinated stage but has not attained the ability to re-integrate any spiritual aspects into what amounts to a barren, incomplete "faith" typical of the college freshman who throws aside his religious training because he's seen through the difficulties in the simplistic religion he was taught in Sunday School or confirmation class.

Stanley Dundee , , June 28, 2019 at 7:20 pm

This seems like a good prompt to revisit the the Pelagians, from around 400 AD, one of whom wrote in the marvellous essay On Riches :

Get rid of the rich man, and you will not be able to find a poor one. Let no man have more than he really needs, and everyone will have as much as they need, since the few who are rich are the reason for the many who are poor. (p. 194)

RBHoughton , , June 28, 2019 at 7:26 pm

Michael Hudson has advice for you old chap, if you have time to read his " .. and forgive them their debts." It turns out that the Catholics and Protestants of all flavors overlook an important part of the Christian message about debt jubilees. Overturning the money tables of the Rabbi-approved bankers in the temple was in pursuit of a fairer economic system such as had been common in the Bronze Age.

Hudson reveals the precedent cause of the collapse of first Athens, then Rome, then Constantinople and now us is the oligarchy of each civilisation favoring creditors and writing laws that advantage them and punish / enslave debtors. The result is the accumulation of global wealth on a small class of people with the rest of the population in poverty and careless of the country in which they live.

Its a great pleasure to see Mr Hudson is reading this NC article. Good luck to him. Any errors in this note are mine.

Susan the other` , , June 28, 2019 at 7:42 pm

The collapse of billionaire-ism.

notabanktoadie , , June 28, 2019 at 9:20 pm

This seems very different from "For ye have the poor always with you" (Matt 26:11, Mark 14:7, John 12:8). lambert

This is not to excuse poverty but as an indictment of that generation since:

However, there will be no poor among you , since the Lord will surely bless you in the land which the Lord your God is giving you as an inheritance to possess, if only you listen obediently to the voice of the Lord your God, to observe carefully all this commandment which I am commanding you today. Deuteronomy 15:4-5 [New American Standard Bible (NASB) [bold added]

However obedience included the following:

"You shall not charge interest to your countrymen: interest on money, food, or anything that may be loaned at interest. You may charge interest to a foreigner, but to your countrymen you shall not charge interest, so that the Lord your God may bless you in all that you undertake in the land which you are about to enter to possess. Deuteronomy 23:19-20 New American Standard Bible (NASB) [bold added]

Draw your own conclusion then as to whether government privileges for a usury cartel are Biblical.

Wombat , , June 28, 2019 at 11:10 pm

James could have been the first century PPC leader. Oddly missing from most sermons is this passage (instead we worship the rich for their "ingenuity" and "work ethic"):

James 5:1-5 (NIV)

Now listen, you rich people, weep and wail because of the misery that is coming on you.

Your wealth has rotted, and moths have eaten your clothes.

Your gold and silver are corroded. Their corrosion will testify against you and eat your flesh like fire. You have hoarded wealth in the last days.

Look! The wages you failed to pay the workers who mowed your fields are crying out against you. The cries of the harvesters have reached the ears of the Lord Almighty.

You have lived on earth in luxury and self-indulgence. You have fattened yourselves in the day of slaughter.

[Jun 26, 2019] The Democratic electorate has shifted sharply to the left, taking many politicians along with it -- willingly and unwillingly by Thomas B. Edsall

Notable quotes:
"... The Democratic Party, thanks largely to the Clintons and their DLC nonsense, has certainly moved to the right. So far right that I haven't been able to call it the Democratic Party. ..."
"... Every Democrat should sign on to FDR's 1944 Economic Bill of Rights speech. It is hardly radical, but rather the foundation of the modern Democratic Party, or at least was before being abrogated by the "new Democrats." Any Dem not supporting it is at best one of the "Republican-lights" who led the Dem party into the wilderness. It would also behoove the party to resurrect FDR's Veep Henry Wallace's NY Times articles about the nature of big businesses and fascism, also from '44. Now that was a party of the people. 7 Replies ..."
Jan 23, 2019 | www.nytimes.com

In its most recent analysis, Gallup found that from 1994 to 2018, the percentage of all Democrats who call themselves liberal more than doubled from 25 percent to 51 percent.

Over the same period, the percentage of Democratic moderates and conservatives fell steadily, with the share of moderates dropping from 48 to 34 percent, and of conservatives dropping from 25 to 13 percent. These trends began to accelerate during the administration of George W. Bush and have continued unabated during the Obama and Trump presidencies.

... ... ...

The anti-establishment faction contributed significantly to the large turnout increases in Democratic primaries last year. Pew found that from 2014 to 2018, turnout in House primaries rose from 13.7 to 19.6 percent of all registered Democrats, in Senate primaries from 16.6 to 22.2 percent and in governor primaries from 17.1 to 24.5 percent.

... ... ...

The extensive support among prospective Democratic presidential candidates for Medicare for All , government-guaranteed jobs and a higher minimum wage reflects the widespread desire in the electorate for greater protection from the vicissitudes of market capitalism -- in response to "increasingly incomplete risk protection in an era of dramatic social change," as the political scientist Jacob Hacker put it in " Privatizing Risk without Privatizing the Welfare State: The Hidden Politics of Social Policy Retrenchment in the United States ." Support for such protections is showing signs of becoming a litmus test for candidates running in the 2020 Democratic presidential primaries.

... ... ...

Sawhill looks at the ideological shifts in the Democratic electorate less from a historical perspective and more as a response to contemporary economic and social dislocation. Among both conservatives and liberals, Sawhill argued, there is "an intellectual awakening about the flaws of modern capitalism" -- a recognition of the failings of "neoliberalism, the idea that a market economy with a few light guardrails is the best way to organize a society." This intellectual climate may result in greater receptivity among voters to more radical proposals.



Michael
Rochester, NY Jan. 23 Times Pick

These "big, bold leftist ideas" pose a strategic problem for liberals and the Democratic Party," (sigh). Here we go again. I am an older guy (Caucasian). I attended Texas A&M University from 1978 to 1982. My tuition payments during that entire time was $4 per credit hour. Same for every Texas resident during that time. Roughly $128 per year. Had Texas A&M not offered education at this modest entry point financially, I would still be working in the Holiday Inn kitchen washing dishes. Like I was in high school. So, I don't understand why older guys who went to school on the cheap, like me, and probably like Mr. Edsall, are writing articles about "radical" proposals like "free" or at least "affordable" education for Americans. We could achieve this very easily if America refocused on domestic growth and health and pulled itself out of its continuous wars. America has spent $6 Trillion dollars on war since 2001. For what? Nothing. Imagine how much college tuition we could have paid instead. Imagine how that would change America. What is radical is killing people of color in other countries for no goal and no reason. Let's refocus on domestic USA issues that are important. Like how to get folks educated so they/we can participate in the US economy.

Mr. Edsall, what did you pay to go to school per year? Was that "radically" cheap? For me, it was not radical to pay $128 per year. It was a blessing.

Bruce Rozenblit Kansas City, MO Jan. 23 Times Pick
To the conservative, liberal means socialist. Unfortunately, they don't know what socialism is. They think socialism is doing nothing and getting paid for it, a freeloader society. Socialism is government interference in the free market, interference in production.

Ethanol is socialism. Oil and gas subsidies are socialism. Agricultural price supports are socialism. Tax breaks and subsidies are socialism. The defence industry is socialism. All of these socialist policies greatly benefit big business. What liberals want is socialism of a similar nature that benefits people. This would include healthcare, education, public transportation, retirement, and childcare. Currently, people work their tails off to generate the profits that pay for corporate socialism and get next to nothing in return. Daycare costs as much as many jobs pay.

Kids graduate from college $50,000 in debt. Get sick and immediately go bankrupt. They have to work past 70. Pursuing these policies is not some far out leftist agenda. They are the norm in most industrialized nations.

It's hard to live free or die if you don't have anything to eat. It's easy to be a libertarian if you make a million bucks a year. Liberals are not advocating getting paid for doing nothing. They want people to have something to do and get paid for it. That is the message that should be pushed. Sounds pretty American to me. 27 Replies

Ronny Dublin, CA Jan. 23 Times Pick
This old white (liberal) man regrets that I was born too late for the FDR New Deal era and too early to be part of this younger generation taking us back to our roots. I lived in America when we had a strong middle class and I have lived through the Republican deconstruction of the middle class, I much preferred the former.

Economic Security and FDR's second bill of rights is a very good place for this new generation to pick up the baton and start running. 4 Replies

Matthew D. Georgia Jan. 23
Are these really moves to the left, or only in comparison to the lurch further right by the republicans. What is wrong with affordable education, health care, maternal and paternal leave, and a host of other programs that benefit all people? Why shouldn't we have more progressive tax rates? These are not radical ideas. 6 Replies
MIMA heartsny Jan. 23 Times Pick
As a senior, who has been a healthcare provider for decades, I hope that people will not be afraid if they get sick, that people will not fear going bankrupt if they get sick, that they do not have to fear they will die needlessly if they get sick, because they did not have proper access to haeathcare treatment. If a 29 year old woman from Queens, Alexandria Ocasio-Cortez, can fulfill my hopes and dreams, and alleviate these fears, just to get humane healthcare - then I say "You Go Girl!" What a wonderful world that would be..... 9 Replies
chele ct Jan. 23 Times Pick
Moving to the left??? I'm 64 years old. I started out on the left and haven't moved leftward in all these years. I'm just as far left now as when I registered to vote as a Democrat when I was 18. We called it being liberal and the Democratic Party reflected my beliefs.

The Democratic Party, thanks largely to the Clintons and their DLC nonsense, has certainly moved to the right. So far right that I haven't been able to call it the Democratic Party. So far right that I have seriously considered changing my party affiliation. Right now, the only think keeping me in the party is this influx of vibrant new faces. One thing that will make me leave is any ascendancy of the corporate lapdog "New Democrat Coalition" attempting to keep my party in thrall to the Republicans. No. The electorate has not shifted sharply leftward. We've been here all along. Our party went down a wrong path. It had better get back on track or become a footnote. 12 Replies

Rich Pein La Crosse Wi Jan. 23
I work with young adults in a university setting. The university I work for used to be really inexpensive. It is still relatively inexpensive and still a bargain. Most of the students have student loans. They can not make enough money in the summer or during the term to pay for tuition, fees, housing, and food. They need jobs that will pay enough to pay for those loans. They also need portable health care. As the employer based health insurance gets worse, that portable health care becomes a necessity so they can move to where the jobs are. So if a livable wage and universal health care are far left ideas then so be it. I am a leftist. 1 Reply
stuart glen arbor, mi Jan. 23 Times Pick
Every Democrat should sign on to FDR's 1944 Economic Bill of Rights speech. It is hardly radical, but rather the foundation of the modern Democratic Party, or at least was before being abrogated by the "new Democrats." Any Dem not supporting it is at best one of the "Republican-lights" who led the Dem party into the wilderness. It would also behoove the party to resurrect FDR's Veep Henry Wallace's NY Times articles about the nature of big businesses and fascism, also from '44. Now that was a party of the people. 7 Replies
Ken New York Jan. 23
@Michael. Pell grants and cheap tuition allowed me to obtain a degree in aerospace engineering in 1985. I'd like to think that that benefited our country, not radicalized it.
C Wolfe Bloomington IN Jan. 23
@Midwest Josh

I don't think that's entirely accurate, and even if true, leaving students to the predations of private lenders isn't the answer. Although I'm willing to entertain your thesis, soaring tuition has also been the way to make up for the underfunding of state universities by state legislatures.

At the same time, there's been an increase since the 70s in de luxe facilities and bloated administrator salaries. When administrators make budget cuts, it isn't for recreational facilities and their own salaries -- it's the classics and history departments, and it's to faculty, with poorly paid part-time adjuncts teaching an unconscionable share of courses. So universities have been exacerbating the same unequal division between the people who actually do the work (faculty) and the people who allocate salaries (administrators) -- so too as in the business world, as you say.

shstl MO Jan. 23 Times Pick
I have a friend who lives on the West Coast and is constantly posting on social media about "white privilege" and how we all need to embrace far left policies to "even the playing field" for minorities. I always bristle at this, not because I don't support these policies, but because this person chooses to live in a city with actually very few minorities. She also lives in a state that's thriving, with new jobs, new residents and skyrocketing real estate values. I, by contrast, live in a state that's declining....steadily losing jobs, businesses and residents....leaving many people feeling uneasy and afraid. I also live in a city with a VERY high minority crime rate, which also makes people uneasy and afraid. Coastal liberals like my friend will instantly consider anyone who mentions this a racist, and hypocritically suggest that our (assumed) racism is what's driving our politics. But when I look around here and see so many Trump supporters (myself NOT included), I don't see racists desperately trying to retain their white privilege in a changing world. I see human beings living in a time and place of great uncertainty and they're scared! If Dems fail to notice this, and fail to create an inclusive message that addresses the fears of EVERYBODY in the working/middle class, regardless of their skin color, they do so at their own peril. Especially in parts of the country like mine that hold the key to regaining the WH. Preaching as my friend does is exactly how to lose. 5 Replies
Bruce Shigeura Berkeley, CA Jan. 23
A majority of Americans, including independent voters and some Republicans favor Medicare for all, a Green New Deal, and higher taxes on the rich. While Trump has polarized voters around race, Ocasio-Cortez is polarizing around class -- the three-fourths of Americans working paycheck to paycheck against the 1 percenters and their minions in both parties. Reading the tea leaves of polls and current Democratic Party factions as Edsall does, is like obsessing about Herbert Hoover's contradictory policies that worsened the Depression. If Ocasio-Cortez becomes bolder and calls for raising the business taxes and closing tax incentives, infrastructure expansion, and federal jobs guarantee, she'll transform the American political debate from the racist wall meme to the redistribution of wealth and power America needs. 1 Reply
Stu Sutin Bloomfield, CT Jan. 23
Labels such as 'liberal" fail to characterize the political agenda articulated by Bernie Sanders. By style and substance, Sanders represented a departure from the hum-drum norm. Is something wrong about aspiring to free college education in an era when student debt totals $1.5 trilliion? His mantle falls to Alexandria Ocasio-Cortez and her followers. One hundred years ago, American progressivism was spawned by Robert La Follette. As governor and senator from Wisconsin, and as failed third party candidate for president, La Follette called for laws to protect youth from horrendous labor practices. He called for laws to protect civil rights. In time, many of La Follette's positions became mainstream. Will history repeated itself? Maybe. The rise of "liberalism" in the Democratic Party is therapeutic, as evidenced by youthful audiences who attended the Sander's rallies. Increasing voter turnout will take back government from a minority that undermines the essence of a democratic system. A Democratic counterbalance to the Republican "Freedom Caucus" may appear divisive to some. To others, it offers a path to the future. 4 Replies
Tracy Rupp Brookings, Oregon Jan. 23 Times Pick
I am so proud of our youth today. They are the hope. I am a lifetime ashamed of my own demographic: Old white men. We really suck. 6 Replies
tom midwest Jan. 23
Ok, from the perspective of a rural white midwest retiree independent with post graduate education, the issues weren't the democrats moving to the left, it was the Republican party turning right (and they show no signs of stopping). Who is against an equal opportunity for an equal quality education for everyone? My college costs years ago could be met with a barely minimum wage job and low cost health insurance provided by the school and I could graduate without debt even from graduate school. Seeing what years of Republican rule did to our college and university systems with a raise in tuition almost every year while legislative support declined every year, who is happy with that? Unions that used to provide a majority of the apprenticeships in good jobs in the skilled were killed by a thousand tiny cuts passed by Republicans over the years. The social safety net that used to be a hand up became an ever diminishing hand out. What happened is those that had made it even to the middle class pulled the ladder up behind them, taking away the self same advantages they had in the past and denying future generations the opportunity. The young democrats and independents coming along see this all too clearly. 1 Reply
Ashley Maryland Jan. 23
These so-called liberal and progressive ideas aren't new. They work now in other countries and have so for many, many years, but the rich keep screaming capitalism good, socialism bad all the while slapping tariffs on products and subsidizing farmers who get to pretend that this is somehow still a free market. It's fun to watch my neighbors do mental gymnastics to justify why subsidizing soy bean farmers to offset the tariffs is a strong free market, but that subsidizing solar panels and healthcare is socialism AKA the devil's work. All of this underscores the reality that, much like geography, Americans are terrible with economics.
JABarry Maryland Jan. 23
The tensions between progressive and moderate positions, liberal and conservative positions in the Democratic Party and in independents, flow from and vary based on information on and an understanding of the issues. What seems to one, at first glance, radically progressive/liberal becomes more mainstream when one is better informed. Take just one issue, Medicare for all, a progressive/liberal objective. At first glance people object based on two main points: costs and nefarious socialism. How do you pay for Medicare for all? Will it add to the debt? Will socialism replace our capitalist economy? People who have private medical insurance pay thousands in premiums, deductibles, co-pays each year. The private insurance is for profit, paying CEO's million dollar salaries and returns to stockholders. People paying these private insurance premiums would pay less for Medicare and have more in their own pockets. Medicare for all is no more nefariously socialistic than social security. Has social security ended capitalism and made America a socialist country? I think not. Is social security or Medicare adding to the national debt? Only if Congress will continue to play their tribal political games. These programs are currently solvent but definitely need tweaking to avoid near term shortfalls. A bipartisan commission could solve the long term solvency issues. The more we know and understand about progressive/liberal ideas, the less radical they become. The solution is education. 17 Replies
James St. Paul, MN. Jan. 23
@Bruce Rozenblit Absolutely correct. According to the Bible of Saint Reagan, Socialism for corporations and the rich: Good. Socialism for the poor and working class: bad.
Midwest Josh Four Days From Saginaw Jan. 23
@Michael - cheaper tuition starts with getting the Federal Govt out of the student loan business, it's as simple as that. Virtually unlimited tuition dollars is what drove up tuition rates. Higher Ed is a business, make no mistake.
mrfreeze6 Seattle, WA Jan. 23
@Bruce, have you ever considered creating a new "reality" network where the truth about things could be told? You're quite good at articulating and defining how the world works, without all the usual nonsense. I really appreciate your comments.
Samuel Santa Barbara Jan. 23 Times Pick
Can we please, please stop talking about AOC? Sure, she's young and energetic and is worthy of note, but what has she accomplished? It's easy to go to a rooftop- or a twitter account- and yell "health care and education for all!' But please, AOC, tell us how you are going to not only pay for these ideas but actually get them through Congress and the Senate? It's just noise, until then, and worse, you're creating a great target for the right that will NOT move with you and certainly can label these ideas as leftist nutism- which would be fine, if we weren't trying to get Trump out of office ASAP.. Dreams are great. Ideals are great. But people who can get stuff actually done move the needle...less rhetoric, more actual plans please.. 10 Replies
c harris Candler, NC Jan. 23
Its ok for a far right bigoted clown to be elected to the president and a tax cut crazy party that wants to have a full scale assault against the environment and force more medical related bankruptcies to be in charge? The safe candidate protected by 800 superdelegates in 2016 was met with a crushing defeat. The Democratic establishment wants a safe neo con corporatist democrat. Fair taxation and redistribution of wealth is not some far out kooky idea. The idea that the wealthiest Americans getaway with paying tax at 15%, if at all, is ruinous to the country. Especially since there is an insane compulsion to spend outlandish trillions on "national security". Universal health care would save the country billions of dollars. Medicare controls costs much more effectively than private insurers. As with defense the US spends billions more on health care than other countries and has worse medical outcomes. Gentrification has opened fissures in the Democrats. The wealthy price out other established communities. The problems of San Francisco and Seattle and other places with gentrification need to be addressed before an open fissure develops in the party. 2 Replies
David Wahnon Westchester My Jan. 23
@Midwest Josh It's time for higher education to stop being a business. Likewise it's time to stop electing leaders who are businessmen/women. 38 Replies
T.R.I. VT Jan. 23
@Bruce Rozenblit Wow! Great points, why don't you run for office? I agree!
Michelle Teas Charlotte Jan. 23
One could argue that many of these ideas are not that far left - rather it's a result of more and more Americans realizing that WE are not the problem. Clean water and air, affordable health care and affordable education are not that radical.
don salmon asheville nc Jan. 23
@Midwest Josh Hmmm, how old are you Midwest Josh? There were student loans back in the 1970s when college cost me about $400 a year. Maybe something happened when that failed Hollywood actor spouted slogans like "Government is not the solution, government is the problem" (and, no, it was not taken out of context, he most definitely DID mean that government is the problem - look it up) www.remember-to-breathe.org 38 Replies
Matt Williams New York Jan. 23
You are studying this like it represents some kind of wave but in fact it is just a few districts out of 435. These young women seem extraordinarily simply because the liberal media says they are extraordinary. If the media attention on these new representatives were to cease, no one except their families, their staff, and maybe Stephen Colbert would notice. 9 Replies
Amanda Jones Jan. 23
Finally, the left came out of its hibernation. We have spent the last decade or more either sleeping or hiding, while at the same time, the Tea Party, the Freedom Caucus, Trump, and his minions were taking over our government---It is such a breath of fresh air to finally listen to airwaves filled with outrage over CEO's making millions of dollars an hour, of companies that have become monopolies, of tax plans that bring back the middle class---it took us a while, but we are back. 2 Replies
FunkyIrishman member of the resistance Jan. 23
For so long (40+ years) the political spectrum has been pulled wildly and radically to the right across so many issues. The Democratic party has for the most part ''triangulated'' their stances accordingly to essentially go along with republicans and corporate interests for a bargain of even more tax/corporate giveaways to hold the line on social issues or programs. It has now gotten to the point that continuous war has been waged for two (2) decades and all the exorbitant costs that go along with that. There has been cut, after cut after cut whereas some people and businesses are not paying any taxes at all now. Infrastructure, social spending and education are all suffering because the cupboard is now bare in the greatest and most richest country in the world. It just came out the other day that ONLY (26) people have as much wealth as the bottom half of the entire world's population. That amount of wealth in relation to dwindling resources of our planet and crushing poverty for billions is abjectly obscene on so many levels. Coupled with all of the above, is the continued erosion of human rights. (especially for women and dominion over their own bodies) People are realizing that the founding fathers had a vision of a secular and Progressive nation and are looking for answers and people that are going to give it to them. They are realizing that the Democratic party is the only party that will stand up for them and be consistent for all.
dudley thompson maryland Jan. 23 Times Pick
Democrats just don't like to win presidential elections. Go ahead. Move left. But remember, you are not taking the rest of the country with you. As a NeverTrump Republican, I'll vote for a moderate Democrat in 2020. No lefties. Sorry. Don't give the country a reason to give Trump four more years. Win the electoral college vote instead of complaining about it. The anti-Trump is a moderate. 5 Replies
Fourteen Boston Jan. 23
"These "big, bold leftist ideas" pose a strategic problem." No they don't. The Real Problem is the non-thinking non-Liberal 40% of Democrats and their simpatico Republicans who are programmed to scream, "How will we pay for all that?" Don't they know all that money will just be stolen? They were silent when that money was stolen by the 0.1% for the Tax Giveaway (they're now working on tax giveaway 2.0) and by the military-industrial complex (to whom Trump gave an extra $200,000,000,000 last year), various boondoggle theft-schemes like the Wall, the popular forever Wars (17 years of Iraq/Afghanistan has cost $2,400,000,000,000 (or 7 times WW2)), and the Wall Street bailouts. Don't those so-called Democrats realize whose money that was? First of all, it's our money. And second, our money "spent" on the People is a highly positive investment with a positive ROI. Compare that to money thrown into the usual money pits which has no return at all - except more terrorists for the military, more income inequality for the Rich, and Average incomes of $422,000 for Wall Street. When the People's money is continually stolen, how can anyone continue to believe that we're living in a democracy?
David Walker Limoux, France Jan. 23
Bruce, a succinct summary of your post is this: What we have now is socialism for the wealthy and corporations (who, as SCOTUS has made clear, are people, too) and rugged individualism for the rest of us. What we're asking for is nothing more than a level playing field for all. And I hope that within my lifetime SCOTUS will have an epiphany and conclude that, gosh, maybe corporations aren't people after all. We can only hope. 27 Replies
Loren Guerriero Portland, OR Jan. 23
Edsall writes with his normal studious care, and makes some good points. Still, I am growing weary of these "Democrats should be careful and move back to the center" opinions. Trump showed us that the old 'left-right-center' way of thinking is no longer applicable. These progressive policies appeal to a broad majority of Americans not because of their ideological position, but because so many are suffering and are ready to give power to representatives who will finally fight for working families. Policies like medicare for all are broadly popular because the health insurance system is broken and most people are fed up and ready to throw the greedy bums out. We've been trying the technocratic incrementalism strategy for too long, with too little to show for it. Bold integrity is exactly what we need. 1 Reply
Reilly Diefenbach Washington State Jan. 23
Outstanding post. America has to catch up with Europe. Democratic socialism is the only answer. 38 Replies
Jessica Summerfield New York City Jan. 23
@Bruce Rozenblit Thank you; as others have commented already, this is so well said. To build on your point: just yesterday, a commenter on a NYT article described AOC as a communist. Incredible. The extent to which decent, pragmatic and, in a bygone era, mainstream, ideas are now painted as dangerous, extreme, and anti-American is both absurd and disturbing. 27 Replies
A. Stanton Dallas, TX Jan. 23 Times Pick
If Hillary were President, there would never have been a shutdown. That is the lesson that Mrs. Pelosi, AOC and Democrats should carry forward to 2020. 5 Replies
BE Lawrence KS Jan. 23
@Bruce Rozenblit Once again reader comments are better than the editorial! This is the most concise explanation I've seen on these pages. 27 Replies
FunkyIrishman member of the resistance Jan. 23
@LTJ No one is promoting ''free stuff'' - what is being proposed is that people/corporations pay into a system Progressively upwards (especially on incomes above 10,000,000 dollars per year) that allowed them and gave them the infrastructure to get rich in the first place. I am sure you would agree that people having multiple homes, cars, and luxury items while children go hungry in the richest nation in the world is obscene on its face. Aye ?
Michael Los Angeles Jan. 23 Times Pick
Keep on keepin' on, AOC. Be the leader you (and we) know you are.
FJS Monmouth Cty NJ Jan. 23
@Ronny Respectfully, President Clinton had a role in the deconstruction of the middle class. My point is many of the folks in the news today were in congress that far back. Say what you will about President Trump and Congresswoman Ocasio-Cortez,I believe they both have exposed the left,the right,the press for what they are. Please choose your own example. I don't agree with all of her positions, but I can't express how I enjoy her making the folks that under their watch led us to where we find ourselves today squirm and try to hide their anger for doing what she does so well. I've been waiting 55 years for this. Thank you AOC.
G James NW Connecticut Jan. 23
@Bruce Rozenblit Bruce, spot on. The point of the New Deal was not to replace capitalism with socialism, but to save capitalism from itself by achieving the balance that would preserve a capitalist economic system but one in which the concerns of the many in terms of freedom from want and freedom from fear were addressed. In other words, the rich get to continue to be rich, but not without paying the price of not being hung in the public square - by funding an expanding middle class. A middle class that by becoming consumers, made the rich even richer. But then greed took over and their messiah Saint Reagan convinced this large middle class that they too could be rich and so cutting taxes for the wealthy (and in the process redistributing the wealth from the expanding middle class to the wealthy) would one day benefit them - when they were wealthy. Drunk on the promise of future wealth, and working harder than ever, the middle class failed to notice whose ox was being gored and voted Republican. And now finally, the pendulum swings. Amen. 27 Replies
C Wolfe Bloomington IN Jan. 23
@Socrates I'm reminded of a poll I saw several years ago that presented positions on issues without attaching them to any individual politician or affixing labels of party or ideology. The pol aimed to express the issue in neutral language without dog whistles or buzzwords. When the pollsters had the data, they looked for the member of Congress whose positions best reflected the view of the majority of respondents. It was Dennis Kucinich, the scary liberal socialist bogeyman of his day.
Liz Chicago Jan. 23
I lived in Europe for a long time. Not even most right wing parties there wish to abolish universal healthcare, replace low or tuition-free colleges with college debt, etc. The US has politically drifted far to the right when the center Democrats were in charge. Now Trump is lurching the country to extreme raw capitalism at the cost of national debt, even our environment and climate, Democrats need to stop incrementalism. Simple as that. 1 Reply
Blackmamba Il Jan. 23
@Michael Dr. Martin Luther King, Jr. was opposed to the eternal triumvirate axis of inhumane evil aka capitalism, militarism and racism. King was a left-wing socialist community organizer. In the mode of Mahatma Gandhi and Nelson Mandela. And the Nazarene of Matthew 25: 31- 46. America's military and prison industrial complexes are the antithesis of America' s proclaimed interests and values. America is number one in arms, money and prisoners. MAGA? 38 Replies
Bob Taos, NM Jan. 23
Bernie and AOC don't seem all that radical to me for the reason this op-ed points out -- I grew up in a New Deal Democratic family. My Grampa was an electrician supervisor for the City of Chicago and my Granma was a legal secretary. They wanted universal health care and free education and jobs for all. Those things made sense then, and they make sense now. They provide solutions to the deep problems of our society, so who wouldn't want them? We've had a lab test -- other than actual jobs for all Northern Europe has these things and we don't. Neo-liberalism, its Pay-Go formula for government, and its benefits for the rich fails on most counts except producing massive inequality and concentrated wealth. Bernie voters want solutions to inequality and climate change, and they are readily available if government can be wrested from the hands of Republicans like Trump and neo-liberals.
Ellen San Diego Jan. 23
@Michael To me, the key sentence in your excellent post is that American needs to "refocus on domestic growth and health and pull itself out of its continuous wars." All policiticians hoping for our votes in the future need to make clear where they stand on this. As to those who say that making all those weapons creates jobs, is there any reason that we couldn't instead start producing other quality goods in the U.S. again? 38 Replies
Bill W Vancouver, WA Jan. 23
@chele Me too! I am 72 y/o, retired, college educated at a rather tough school in which to gain entrance. Lived below my means for over 40 years. Parents are both WW2 Marine Corps officers(not career), who voted Republican and were active in local elections. They would be shocked and disgusted at what that "party" represents now.
Thea NY Jan. 23
@Bruce Rozenblit Wish I could like this many more times. What you are saying is what is the truth. 27 Replies
walking man Glenmont NY Jan. 23
I think you look at all this in a vacuum. Democrats veered left because there was a need to counterbalance what was happening on the right. They see Republicans aggressively trying to undo all the gains the left had achieved the previous several decades. Civil rights, Womens' rights, anti-poverty efforts, and so on all not just being pushed to the right, but forced to the right with a bulldozer. It got to a tipping point where Democrats could clearly see the forest for the trees. A great deal of this was a result of Republicans inability to candy coat their agenda. Universal healthcare....not being replaced by affordable alternatives, but by nothing. Tax cuts that were supposed to help the middle class, but, as evidenced by the government shutdown, giving them no economic breathing room. And, in fact, making their tax cut temporary, something nearly impossible to reverse with such a high deficit. Attacking immigrants with no plan on who, actually, would do the work immigrants do. The list goes on and on. In the past, many social programs were put in place not so much to alleviate suffering as to silence the masses. Now Republicans feel the time has come to take it all back, offering easily seen through false promises as replacements. That the left should see the big picture here and say "Not so fast" should come as absolutely no surprise. All they need now is a leader eloquent enough to rally the masses.
allen roberts 99171 Jan. 23
I think the Democratic Party is finally returning to its roots. We are now engaging in the same politics which gave us control of the House for about fifty years. I went to my first International Union convention is 1972 at which Ted Kennedy was one of the featured speakers. One of the themes of the convention was healthcare for all. Now it treated as some sort of radical proposal from the left. I am not certain why clean air and water, affordable health care and housing, combating climate change, raising wages, taxing the highest income brackets, updating our infrastructure, solving the immigration issue, and providing aid not weapons to other nations, are considered liberal or socialistic. I think it represents the thinking of a progressive society looking to the future rather than living in the past. 1 Reply
bdfreund Ottawa Jan. 23
@David G. I would also say that many people think a cooperative economic enterprise, such as a worker owned factory, is Socialism. But this is blatantly wrong and is pushed by the rich business and stock owners to denigrate these types of businesses. Cooperatives have often proven themselves quite successful in navigating a free market system, while simultaneously focussing on workers rights and ownership. We need more if this in North America. 27 Replies
will b upper left edge Jan. 23
@Samuel She's been in office less than a month. You want to shut down the conversation that is finally bringing real hope & passion to average people, & is bringing a new set of goals (& more integrity) to the Democratic Party? Paying for single-payer has been rehashed many times; just look at all the other 'civilized' countries who have it. For once, try putting the savings from ending co-pays, deductibles, & premiums into the equation. Think about the savings from large-group bids, & negotiations for drug prices, & the savings from preventative medicine heading off more expensive advanced treatment. Bernie Sanders has been explaining all this for years now. 'Less rhetoric'? The conversation is (finally) just now getting started! You start by explaining what is possible. When enough people understand it, the needle will start to move. Watch.
David J NJ Jan. 23
@JBC, Rep. Ocasio-Cortez was voted into congress and then the media took notice. It wasn't the other way around. My only hope is that she stays the course.
H. G. Detroit, MI Jan. 23
@Bruce Rozenblit And don't forget the biggest socialist project of our time - the wall! And withholding 800k employee checks to do so? That's socialism at gun point. 27 Replies
Jean Cleary Jan. 23
There are two points left out of all of the analysis of both Pressley's and Ocasio-Cortez's campaigns. First of all, both women did old fashioned retail politics, knocking on doors, sending out postcards, gathering as many volunteers as they could and talking about the issues with voters face to face. They took nothing for granted. This is precisely what Crowley and Capuano did not do. Second, they actually listened to the voters regarding what they needed and wanted in Congressional representation. What both of the stand for is neither Liberal or Conservative. What they stand for human values. This is not to say that Capuano and Crowley did not stand for these same values, but they took the voter for granted. That is how you lose elections. The Democrats are going back to their roots. They have found that the Mid-terms proved that issues of Health Care, minimum wages, good educations for all despite economic circumstances, and how important immigration is to this country really matter to the voters. They need to be braver in getting this across before the next election And the press might want to start calling the candidates Humane, period. 1 Reply
APT Boston, MA Jan. 23
@MIMA Yes, absolutely. I'm retired from the healthcare field after practicing 38 years. It is unconscionable that we question the access of healthcare to everyone. The complaint usually heard from the right is about "the takers." Data I've seen indicates that the majority on "the dole" are workers, who can't make ends meet in the gig economy or the disabled. That some lazy grubbers are in the system is unavoidable; perfection is the enemy of the good.
Felix New England Jan. 23
@Michael Could not have said it better myself. 38 Replies
Billy from Brooklyn Jan. 23
@Stu Sutin I agree, "Liberal" is too broad a term, as so-called liberals do not agree on everything, especially the degree. We can be socially liberal, while economically moderate--or vice versa. Some believe in John Maynard Keynes economics, but appose abortion. Some want free college tuition, while others support public schools but do not support the public paying for higher education. Our foreign policy beliefs often differ greatly. What joins us is a belief in a bottom up economy, not top down--and a greater belief in civil liberties and a greater distribution of wealth. Beyond that, our religious and cultural beliefs often differ.
Robert Grant Charleston, SC Jan. 23
I think the Internet has provided an influx of new understanding for the American left. They've learned that things considered radical here are considered unexceptional in the rest of the developed world. There is a realization that the only reason these are not normal here is because of a lack of political will to enact them. That will is building as the ongoing inequities are splashed across the front pages and the twitter feeds. It is the beginning of the end for American exceptionalism (a term coined by Stalin as America resisted the wave of socialism spreading around the world in the early 20th century). Unbridled capitalism lasted longer than communism but only because its costs were hidden longer. We need to find the sustainable middle path that allows for entrepreneurship along with a strong social safety net (and environmental protection). This new crop of progressive Democrats (with strong electoral backing) might lead the way.
G. Slocum Akron Jan. 23
at 63, I was there. I don't want second Trump administration either, but the route to a Democratic victory is not cozying up to the corporations and the wealthy, but by stating clearly, like FDR, "they are unanimous in their hate for me, and I welcome their hatred." We need people who are willing to say that the rich deserve to be taxed at a higher rate, because they have benefited more from our society, that no income deserves to be taxed at a lower rate than the wages paid to working people, and that vast wealth needs to be earned, not inherited. Emmanuel Saez makes persuasive arguments, but they need to be made in the language of the working people. 12 Replies
Richard Grayson Brooklyn Jan. 23
@Michael Your $128 a year would be more like $414 or so in today's dollars. Still . . . I went to Brooklyn College, part of the tuition-free City University of New York from 1969-1973. We paid a $53 general fee at the start of every semester ($24 for a summer semester), and that was it. Wealthy or poor, everyone paid the same amount (about $334 in today's dollars). 38 Replies
Rob Ware Salt Lake City, UT Jan. 23
@JRS Democratic party leaders have been in favor of more border security and an overhauled immigration system for as long as I've been alive. The suggestion (clearly this comment's intention) that Democrats favor "open" borders, ports, etc., is a myth propagated by an ever more influential right wing. And it's working: it's been repeated so often that it's now virtually an assumption that Democrats favor open borders, despite that fact that any critical thought on the subjection indicates the opposite is true.
Cass Missoula Jan. 23
I'm a very moderate Democrat -liberal on social issues and very supportive of free global trade- who would vote for any of the current Democrats over Trump, but would leave the party if AOC's ideas became the norm. I don't have a problem in principle with a 70% top marginal tax rate or AOC's Green New Deal- Meaning, these aren't moral issues for me per se. I just believe they would bankrupt the economy and push us into a chaos far worse than what we're seeing under Trump. 5 Replies
magicisnotreal earth Jan. 23
@Michael The increase in fees for education to include the books along with the lowering of standards for the classes taken is part and parcel of the reagan revolution to remake American society. One of the most problematic things for those seeking to undo what FDR did was the plethora of well educated and well read people American had managed to create. How were they going to be able to overcome this? You can deduce whatever methods you may know but I saw them tank the economy on purpose and prey on the fear that it created with more and more radical propaganda. Once they got into office they removed the best and brightest of our Civil Service and began making legal the crimes they wanted to commit and changing laws and procedures for how things were done so that people would eventually come to think of this as the "right" way when it was in fact purpose designed to deny them their due. 38 Replies
OldBoatMan Rochester, MN Jan. 23
Younger candidates, like Alexandria Ocasio-Cortez, appeal to younger voters. John Kennedy appealed to WWII veterans, most of whom were in their 30s when they elected him. One of the reasons for Barack Obama's support in 2008 among younger voters is that he was a younger candidate and they identified with a younger candidate. That appeal to a younger electorate will play a larger role in future elections. Don't focus too strongly on issues. Democrats will win by a landslide in 2020 if they nominate a younger candidate that can inspire younger voters. November 3, 2020. 1 Reply
Barry McKenna USA Jan. 23
@Samuel Actually, running a campaign and getting elected is a significant accomplishment. Before anyone decides about what bills to promote and means of paying for them, we need a momentum of discourse, and promoting that discourse is another major accomplishment. You and many millions of others, also, have good reasons to be frustrated. Let's just try to actually "work" at talking the talking and walking the walk, and maybe we will--or maybe we won't--arrive some place where we can see some improvement.
Jason A. New York NY Jan. 23 Times Pick
The interesting part of this piece is the statement about politicians moving unwillingly. So some Democratic Congressmen and Congresswomen are allowing their personal beliefs to be compromised for the glory of being elected or re-elected? Sounds like someone I would not care to support. 2 Replies
profwilliams Montclair Jan. 23
A great essay! The wild card in all this analysis, of course, is what happens when these (now) young voters, age, eventually partner, and have kids. As every generation has shown, the needs of a voter changes as they age. I'm surrounded by many new neighbors with little kids who moved out of Brooklyn and Jersey City who suddenly find themselves concerned about rising property taxes- they now see the balance between taxes and services. Not something they worried about a few years ago. 2 Replies
John Patt Koloa, HI Jan. 23
@Tracy Rupp I am a senior citizen heterosexual white male. I do not apologize for my race, gender, etc. In fact, I am proud of our accomplishments. I do apologize for my personal wrongs, and strive to improve myself.
D I Shaw Maryland Jan. 23
"This will be difficult, given the fact that what is being proposed is a much larger role for government, and that those who are most in need of government support are in the bottom half of the income distribution and disproportionately minority -- in a country with a long racist history." True enough, but if progressives want actual people in that bottom half to lead happier lives, the focus of any programs should not be to employ armies in left-leaning and self-perpetuating "agencies," but rather to devise policies to help people develop the self-discipline to: A) finish high school, B) postpone the bearing of children until marriage (not as a religious construct but as a practical expression of commitment to the child's future), and; C) Find and get a regular job. These are supported by what objective, empirical data we have. These have not struck me as objectives of the rising left in the Democratic party. Mostly, I see endless moral preening, and a tribal demonizing of the "other," just exactly as they accuse the "other." In this case the "other" is we insufficiently "woke" but entirely moderate white folks who still comprise a plurality of Americans. I see success on the left as based primarily on an ability to express performative outrage. But remember, you build a house one brick at a time, which can be pretty boring, and delivers no jolt of dopamine as would manning the barricades, but which results in a warm, dry, comfortable place to live. 4 Replies
Edward Wichita, KS Jan. 23
@Concerned Citizen For your information, Holiday Inns typically had a restaurant in the hotel in the days Michael is talking about so... whatever! 38 Replies
Warren Peace Columbus, OH Jan. 24
My father fought in Germany during WWII, then came home and went to college on the GI bill. Both my parents received federal assistance for a loan on their first house. Later, during retirement, they were taken care of by Medicare and given an income by Social Security. They worked hard, kept their values, lived modestly, and voted for Democrats. Apparently, they were wild-eyed, leftist-socialist radicals, and I never knew it.
617to416 Ontario Via Massachusetts Jan. 23
@Bruce Shigeura AOC in some ways is doing what Bernie was doing -- mobilizing people around class as you say -- but the difference is that AOC doesn't shy away from issues of racial justice. Bernie seemed to want to unite people by ignoring issues of race, as if he was afraid that mentioning race too much might drive Whites away. AOC seems able to hold whites on the class issue while still speaking to the racial justice issues that are important to non-Whites. She's an extraordinary phenomenon: smart, engaging, articulate and with personal connections to both the White and Non-White worlds, so she threatens neither and appeals to both.
harpla Jan. 23
@Stu Sutin "Is something wrong about aspiring to free college education in an era when student debt totals $1.5 trilliion?" Yes. If you're the Congressperson who gets his/her funding from the lenders.
Joshua Schwartz Ramat-Gan, Israel Jan. 23
A O-C has yet to open a district office. A O-C is more interested in "national" issues and exposure than those of her district. What A O-C may have forgotten is that it is her district and constituents that have to re-elect her in less than 2 tears (or not): "Would you rather have a Congress member with an amazing local services office, or one that leads nationally on issues?" she queried her 1.9 million followers on Instagram -- a number that is well over twice the population of her district. The results strongly favored national issues." https://www.nytimes.com/2019/01/22/nyregion/aoc-alexandria-ocasio-cortez-district-office.html As Mr. Edsall points out, her district is not necessarily progressive and liberal and while there may be national issues, at the bottom line, many of her instagram groupies are not her constituents. Democrats like to constantly point out that Ms. Clinton won the popular vote, and she was the non-liberal-progressive Democrat. I am sure that the Republicans pray for the success of the Democratic left. They seek to give voice to that left. That will bring the swing votes right back to or over to the Republicans, without, but possibly even with Mr. Trump (if the Democrats cross a left-wing tipping point). Bottom line, instagram is fine and likes are great, twitter is good for snappy answers, but representatives to the House have to deliver to their district and constituents. A O-C leads, but to the salvation of the Republican party. 6 Replies
Marc Vermont Jan. 23
@Joshua Schwartz M. Ocasio-Cortez explained on The Late Show the other night that the reason she has not opened her district office is due to the Government Shutdown. The people charged with setting up the office are on furlough, the money for the office is being held up and she staff or furnish the office.
Eric Bremen Jan. 23
Isn't this somehow the natural swing of things? Years of heavy-handed politics benefitting small minorities on the right have taken their toll, so now new ideas are up at bat. By the way, these ideas aren't really that bold at all - many countries have living minimum wages or mandatory healthcare, and are thriving, with a much happier population. Only in the context of decades-long, almost brainwash-like pounding of these ideas as 'Un-American' or 'socialist' can they be seen as 'bold'. American exeptionalism has led to a seriously unbalanced and dangerously threatened social contract. Tell me again, Republicans: why is a diverse, healthy and productive population living under inspiration instead of constant fear so bad?
jrd ny Jan. 23
The "experts" offering advice here seem to have forgotten that Hillary Clinton listened to them in 2016: the party decided that appealing to suburban Republicans and Jeb Bush voters was more important than exciting the Democratic party base. The other hazard of calculated politics is that the candidate is revealed to be a phony, believing in nothing but power or that it's simply "her turn" -- an uncompelling program for a voter. 1 Reply
H NYC Jan. 23
They will all face primary challengers in 2020. Tlaib and Omar didn't even win a majority of the primary vote. There were so many candidates running in those primaries, they only managed a plurality. And let's be honest about the demographic changes in the districts Pressley and Ocasio Cortez won. They went from primarily ethnic White to minority majority. Both women explicitly campaigned on the premise that their identity made them more representative of the district than an old White male incumbent. Let's not sugarcoat what happened: they ran explicitly racist campaigns. They won with tribalism, not liberal values. Democrats actually need more candidates like Lucy McBath, Antonio Delgado, and Kendra Horn if they want to retain Congressional control and change policy. And many minorities and immigrants aren't interested in the far left faction. We don't have a problem with Obama and a moderate approach to social democracy.
Len Charlap Printceton NJ Jan. 23
@JABarry - Some data: Canada has a program like Medicare for All, and its bottom line health care statistics are better than ours in spite of a worse climate. We paid $9506.20 per person for health care in 2016. In Canada, they paid $4643.70. If our system we as efficient as Canada's, we would save over $1.5 TRILLION each and every year. This is money that can be used for better purposes. If one uses the bottom line statistics, we see that both Canada and the UK (real socialized medicine) do better than we do: Life expectancy at birth (OECD): Canada- 81.9, UK - 81.1, US - 78.8 Infant Mortality (OECD)(Deaths per 1,000): Canada - 4.7, UK - 3.8, US - 6.0 Maternal Mortality (WHO): Canada - 7, UK - 9, US - 14 Instead of worrying how we would pay for it, we will have the problem of how to spend all the money we would save. BTW can you point to a period where too high federal debt hurt the economy? In 1837 the federal debt as a percentage of GDP was 0%; it was 16% in October of 1929. Both were followed horrendous depression. It was 121% in 1946 followed by 27 years of Great Prosperity.
UTBG Denver, CO Jan. 23
Best comment in some time. I work and live too much in the'big flat'. I am a very hard core Chicago Democratic Liberal from birth, but the distressed towns and small cities are facing extinction. then what?
Mercury S San Francisco Jan. 23
@In the know I'm formerly Republican, and female. I'm on the ACA, and while premiums were going up slowly, they've exploded in the past two years due to Republican sabatoge. They are certainly no reason to vote for Trump.
D.j.j.k. south Delaware Jan. 23
@Midwest Then the rich will only be eligible for college. Give me government intervention any time. I am retired military . Off base in Lewes De a mans hair cut is now 20.00 plus tips. Just a plain cut. On base with gov intervention it 12.00 . Capitalism you support is only for the 1 percent the 99 percent never gets ahead. 38 Replies
P New York Jan. 23
She has a massive throng of twitter followers, is completely unconcerned with facts, uses publicity to gain power and seems unwilling to negotiate on her positions. Remind you of anyone else? 3 Replies
FXQ Cincinnati Jan. 23
The establishment is trying so hard to spin the progressives push on the issues of Medicare for All, free state college and university tuition, a livable wage of $15/hr as ponies and fairy dust and an extreme "socialist" makeover/takeover of America. But from all the polls that I've seen, these policies are actually quite popular even with a majority of Republicans. Yes, a majority of Republicans. A Medicare for All would cover everybody, eliminate health insurance premiums for individuals and businesses ( which by the way are competing with businesses in other countries that have a single-payer system) and would save $2 trillion over ten years (Koch bothers funded study). The result would be a healthy and educated populace. But how to pay for this? Well, we spend over $700 billion on our military while Russia spends $20 billion and China spends $146 billion, so there seems to be plenty of money that is already being spent to be redirected back to us without compromising national security. A Medicare for All system supports a private healthcare system just as it is now, except instead of giving some insurance company our premium who then skims off a big chunk for their profit, we pay it to our government who then administers the payments to the healthcare provider(s). The system is in place and has been for people 65 years and older and works very well with high satisfaction rates. Just expand it to all. 2 Replies
Smartone new york,ny Jan. 23
@Midwest Josh Wrong!!! Tuition's have skyrocketed because for past 35 years States have slashed support for public universities. The Federal Government took over student loan business from predatory banks which was a very good thing but unfortunately have kept interest rates high ... Student loans is a profit center for Federal Government 38 Replies
Michael Rochester, NY Jan. 23
@Concerned Citizen Go ahead and check the holiday inn in Palestine Texas. It had a small restaurant in 1978. I was their dishwasher. There was no ford plant nearby. 38 Replies
FXQ Cincinnati Jan. 23
@Bruce Rozenblit Well put. As Martin Luther King Jr. said: "We all too often have socialism for the rich and rugged free market capitalism for the poor." 27 Replies
Glenn Ribotsky Queens Jan. 23
@stuart They used to call it the "Democratic wing of the Democratic party". I was glad when Thomas Edsall finally got around, in this piece, to mentioning that what is often thought of as a radical leftist turn today, due to just how far to the right our general political discussions had gone, was actually pretty much mainstream Democratic policy for much of the middle 20th century.
Fourteen Boston Jan. 23
@Len Charlap Quite simply Canada's healthcare quality is ranked 16th in the world, while ours is lower ranked at 23rd. And we pay twice as much. That indicates some funny business going on.
Westchester Guy Westchester, NY Jan. 23
It is remarkable that "big, bold leftist ideas" include - preserving the historical relationship between the minimum wage and the cost of living - lowering the cost of college to something in line with what obtained for most public colleges and universities in the 50s, 60s and 70s and exist in the rest of the Western world today - adapting our existing Medicare system to deliver universal coverage of the kind generally supported across the political spectrum in Canada and the UK Democrats should reject the "leftist" label for these ideas and explain that it is opposition to these mainstream ideas that is, in fact, ideological and extreme. 2 Replies
H NYC Jan. 23
@Marc Except that's outright false. Offices are open. All the other new Congress members from New York are setup and taking care of people. She doesn't care about constituent service. She revels in the media attention, but isn't getting anything done even in the background. NY has three Congress members (Lowey, Serrano, Meng) whose under-appreciated work on the appropriations committee actually helps ensure our region's needs and liberal priorities are reflected in federal spending. Meanwhile Ocasio Cortez is working on unseating Democrats incumbents she deems insufficiently leftist e.g. Cuellar, Jeffries. Who needs Republicans when you have Socialists trying to destroy the Democratic Party.
Eric The Other Earth Jan. 23
The NYT should consider getting some columnists who reflect the new (FDR? new?) trends in the country and in the Democratic party. The old Clinton/Biden/Edsall Republican lite approach -- all in for Wall Street -- is dying. Good riddens. BTW I'm a 65 year old electrical engineer. 1 Reply
rtj Massachusetts Jan. 23
You're missing something big here, sir. Capuano was a Clinton superdelegate in 2016 who declared well before the primaries (like all other Mass superdelegates, save for Warren who waited until well after the primaries.) Thereby in effect telling constituents that their vote was irrelevant, as they were willing to override it. Somerville went for Sanders 57% to 42%. Putting party over voters maybe isn't a great idea when 51% of voters in Massachusetts are registered Unenrolled (Independent) and can vote in primaries. Bit rich to signal that our votes don't matter, but then expect it later as it maybe actually does matter after all. Pressley was all in for Clinton, which is of course suspect. But like me, she had only one vote.
don salmon asheville nc Jan. 23
@C Wolfe Wow. Funky Irishman has been, for many months, writing about and presenting excellent data showing that the US is actually a center-left (if not strongly progressive) country. I used to present this evidence to Richard Luettgen (where has he gone??) who kept insisting we are center-right (but never, as was his custom, presented any evidence for this). your example is the best I've ever seen. I'm a member of a 4000-strong Facebook group, the "Rational Republicans" (seriously - a local attorney with a decidedly liberal bent started it and almost beat regressive Patrick McHenry here in Asheville). I've been making this point on the FB page for the past year and people are stunned when they see the numbers. I'm going to post your example as well. Excellent!
John LINY Jan. 23
It's funny to watch people shocked when she makes her proposal. Her ideas are very old and have worked in the past in various cultures. But the point that she can voice them is because she can. Her people put her there because she said those things with their approval. She reflects her community ideals. Just like Steve King.
rose atlanta Jan. 23
I'm already tired of Alexandria Ocasio-Cortez and I'm a liberal and Hispanic...its constant overkill, everybody falling over her, total overexposure. The news media has found their darling for the moment. Let's see what she accomplishes, what bills she proposes and passes that is the work to be done not being in the news 24/7.
GregP 27405 Jan. 23
Until the left figures out that every single one of their most desired Policy Implementations are only feasible with controlled immigration and secured borders doesn't matter who the messenger is. Want Single Payer Healthcare? Can't have it and Open Borders too. Want free College? Can't have it and Open Borders too. Want Guaranteed Basic Income? Cannot have it in any form without absolutely controlling the Border. So, either you want that influx of new voters to win elections or you want to see new policy changes that will benefit all Americans. Pick one and fight for it. You seem to have chosen the new voters. 3 Replies
Fourteen Boston Jan. 23
@Matt Williams But they are extraordinary, relative to their bought and paid for colleagues. That came first and the media is reporting it. Their authenticity is naive, but it shouldn't be, and that's the story. It's a glimmer of hope for democracy that may be extinguished - let's celebrate this light in the darkness, while it lasts.
Erik Jan. 23
@Bruce Rozenblit This is. Spot. On. The socialism of: Privatize the profits, socialize the losses. It's defined American economic and social policy for the last 30+ years and we can see the results today. 27 Replies
Deb Jan. 23
@shstl I agree and as a moderate Democrat, I already feel like an outsider, so imagine what independents are thinking. AOC stated that she wants to primary Hakeem Jeffries, who is a moderate. With statements like these, made before spending a day in congress, who needs the GOP to tear apart the Democratic party? Sanders didn't even win the primary and his supporters claim the primary was stolen. We lost the house and senate all by ourselves. I already have AOC fatigue and my rejoice for the blue wave is still there but fading.
Bill Terrace, BC Jan. 24
Since 1980, the US has veered sharply to the Right. A course correction is long overdue.
Kingfish52 Rocky Mountains Jan. 24
The Democratic party was shoved to the right with Bill Clinton's Third Way ideology that made its focus the same wealthy donor class as the Republicans, while breaking promises to its former base, the middle and working class. This led to the unchecked capitalism that produced the Crash of '08, and the subsequent bail out to Wall St. The powers running the DNC - all Third Way disciples, like Hilary - refused to take up any of these "socialist" causes because their wealthy donors didn't want to have their escalating wealth diminished. Meanwhile these Democrats In Republican Clothing were banking on continued support from those they had abandoned. And they got it for years...until now. Now, finally, we're getting candidates who represent those abandoned, and who are refusing to hew to the poobah's Third Way agenda. But the Old Guard is trying to retain their power by labeling these candidates as "socialists", and "far left". Well, if that's true, then FDR was a "socialist" too. Funny though how all those "socialists" who voted for FDR, Truman, JFK, and LBJ enjoyed such capitalistic benefits like good paying jobs, benefits, home ownership, good education, and the fruits of Big Guv'mint like the Interstate Highway system, electricity, schools, the Space Program and all the benefits that produced. It was only when we turned our backs on that success and relied on unchecked capitalism that most of America began their slide backwards. We need to go left to go forward.
Elfego New York Jan. 23
Why is the media lionizing this ignorant, undisciplined child? She should shut up, sit down, learn how to listen and learn from her elders in government. She is acting like a college student, who has no one to hold her accountable for her reckless, stupid behavior. Why does the media seem to be enamored of her?????
mj somewhere in the middle Jan. 23
@Michael Lucky for you. I went to the University of Michigan at roughly the same time and it was no where near that cheap--not even close. And housing? Don't get me started on that. Even then it took my breath away. 38 Replies
Quiet Waiting Texas Jan. 23
@chele That which you are pleased to call the DLC nonsense originated not with the Clintons, but with one of the worst presidential defeats the Democratic party ever suffered: the 1972 campaign of George McGovern. That debacle resulted in a second Nixon administration and I hope that the current trends within the Democratic party do not result in a second Trump administration.
Jack Shultz Pointe Claire Que. Canada Jan. 23
It is exceeding strange to me that "Conservatives" in the US consider Medicare for all and universal access to higher education as being radical, pie-in-the-sky, proposals. Here in Canada we have had universal medicare for a half a century and it has proven itself to be relatively effective and efficient and has not driven us into penury. As for free access to education beyond high school, I remember learning a while ago that the US government discovered that it had earned a return of 700% on the money spent on the GI Bill after WWII which allowed returning GIs to go to colleges and universities. The problem with American conservatives is that they see investments in the health, welfare and education of the citizenry as wasteful expenditures, and wasteful expenditures such as the resources going to an already bloated military, and of course tax cuts for themselves as investments.
Orangecat Valley Forge, PA Jan. 23
Note to the NYT and its contributors. Your sycophantic enslavement to promoting Ocasio-Cortez is beginning to fatigue some of your readers. 2 Replies
RedRat Sammamish, WA Jan. 23
@chele Amen to you! I too am old guy (79) and think Alexandria Ocasio-Cortez is a savior of the Democratic Party! She is young and has great ideas. I agree with you about the Clintons, they led the party down a sinkhole. I agree with just about everything I have heard Alexandria espouse. She is refreshing. Glad she is kicking the butts of those old guard Democrats that have fossilized in place--they are dinosaurs. 12 Replies
Tintin Midwest Jan. 23
@Tracy Rupp The problem with blaming a group based on demographics, rather than behavior or ideology, is that you are likely to be disappointed. There are a lot of people who are not old white men who are just as seduced by money, power, and local privilege as was the old guard. Feminists writing letters to condemn a male student who made charges of being sexually harassed by his female professor; African American activists who refuse to reject the antisemitism of charismatic cult leaders. Human beings in charge will be flawed, regardless of their race, gender identity, or sexual orientation. As the balance of power changes hands, corruption too will become more diverse. 6 Replies
Woof NY Jan. 23
Money is the mother's milk of politics, so let me comment on "many of whom did not want the Democrats to nominate a candidate with deep ties to party regulars and to the major donor community." Include me. Because the major donor community is Charles E Schumer, Leader Democrats, House Top Contributors, 1989 - 2018 1 Goldman Sachs 2 Citigroup Inc 3 Paul, Weiss et al 4 JPMorgan Chase & Co 5 Credit Suisse Group That is Wall Street Nancy Pelosi, leader Democrats, House Top Contributors, 2017 - 2018 1 Facebook Inc 2 Alphabet Inc (Google) 2 Salesforce.com 4 University of California 5 Intel Corp $13,035 That is Silicon Valley . The U of CA should spent its money on students What is the interest of these donors ? For Wall Street, it is maximizing profits by suppressing wages, outsourcing to of enterprises it owns to low wage countries, and immigration of people willing to work for less For Silicon Valley it is Mining your data, violating your privacy, and immigration of people willing to work for less via H1B To win general (not primary) elections you need large amounts of money. At in return for this money, you need to take care of your donors, lest you find you without money in the next election Until the Democratic Party frees itself of this system, it will spout liberal rhetoric, but do little to help average Americans As Sanders showed, it can do so, running on small donations. DNC, eye on frightened donors, killed his attempt. 1 Reply
Cwnidog Central Florida Jan. 23
"The most active wing of the Democratic Party -- the roughly 20 percent of the party's electorate that votes in primaries and wields disproportionate influence over which issues get prioritized -- has moved decisively to the left." Yet it seems that you feel that the party should ignore them and move to the center right in order to capture suburban Republican women, who will revert back to the Republican party as soon as (and if) it regains something resembling sanity. Do you seriously think that its worth jettisoning what you describe as "the most active wing of the party" for that? 2 Replies
Ron Cohen Waltham, MA Jan. 23
@shstl Right on!
Linda Miilu Chico, CA Jan. 23
@David G. See Norway, Denmark, Germany, England and Finland. Citizens have jobs and health care; education is affordable and subsidized. Not all young people attend universities; many go to vocational schools which prepare them for good jobs. We could do the same. 27 Replies
Lisa NYC Jan. 23
@Midwest Josh That is so NOT true Midwest Josh. The unattainable loans and interest problems are because the private sector has been allowed into the student loan game. The government should be the underwriter for all student loan programs unless individual schools offer specialized lending programs. Whenever the government privatizes anything the real abuse starts and the little guy gets hurt. 38 Replies
michaeltide Bothell, WA Jan. 23
@Bruce Rozenblit, at the end of a long line of commenters, I add my congratulations for a well-articulated overview of our political dilemma. Both "trickle-down"economics and "neo-liberalism" have brought us to this pass, giving both Democrats and Republicans a way of rewarding their corporate masters. I believe both Cinton and Obama believed they could find a balance between the corporate agenda and a secure society. We see with hindsight how this has hailed to materialize, and are rightly seeking a more equitable system – one that addresses the common sense needs of all of us. I, for one, am overjoyed that the younger generation has found its voice, and has a cause to support. My recollection of demonstrating against the Viet Nam war (and the draft), marching for civil rights, and even trying to promote the (then largely inchoate) women's rights movement, still evokes a passionate nostalgia. We have witnessed an entire generation that lacked passion for any cause beyond their individual desires. It's good to have young men and women reminding us of our values, our aspirations, and our power as citizens. As the bumper sticker says, "If you think education is expensive – try ignorance." Thanks again for a fine post. 27 Replies
James Mullaney Woodside, NY Jan. 23
@Matt Williams Without the undue media attention we wouldn't be saddled with this cartoon character masquerading as a president.
Shirley0401 The South Jan. 23
@Quiet Waiting That was FIFTY YEARS AGO. People who fought in the Spanish-American War were still casting ballots, for heaven's sake. McGovern has been used by Third Way apologists as a cautionary tale to provide cover for doing what they clearly wanted to do anyway. The other reality is that the McGovern/Nixon race took place in a time when there was broad consensus that many of the social programs Republicans are now salivating over privatizing weren't going anywhere. 12 Replies
ann Seattle Jan. 23
Abolishing ICE is tantamount to having open borders. No modern country can allow all people who are able to get to its borders to just move in, and take advantage of its government services. If a country were to start offering Medicare for All, no or reduced college tuition, a universal jobs guarantee, a $15 minimum wage, and wage subsidies to the entire bottom half through an expansion of the Earned Income Tax Credit, paid maternity/paternity leave, and free child care, it would need tax-payers to support these plans. It could not afford to support all of the poor, uneducated migrants who have been illegally crossing our borders, let alone all of those who would run here if ICE were to be abolished. Look at Canada which has more of a social safety net than is offered in our country. It has practically no illegal immigrants. (A long term illegal immigrant had to sue for the government to pay for her extensive medical care, and the court decisions appear to have limited government payment of her medical bills just to her and not to other illegal migrants.) It picks the vast majority of its legal immigrants on a merit system that prioritizes those who would contribute a special needed skill to the Canadian economy, who are fluent in English and/or French, and who could easily assimilate. Thus, most of Canada's immigrants start paying hefty taxes as soon as they move to Canada, helping to support the country's social safety net. 1 Reply
GAO Gurnee, IL Jan. 23
@Samuel To pay for universal health care you capture all the money currently being spent for the health care system. That includes all the employer insurance premiums, VA medical care costs, military medical costs, all out-of-pocket expenses, everything. That provides plenty of money for ou