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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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[Apr 09, 2021] Ethnicity Is a Bad, Often Destructive, Reason to Hire

Highly recommended!
Apr 08, 2021 | www.wsj.com

Judge James C. Ho is absolutely correct to imply it is profoundly offensive to be offered opportunity based on race rather than merit (" Notable & Quotable: Judges ," March 27).

When I was approaching graduation and beginning my job search, a friend of the family, who was Jewish himself, approached me with an opportunity. His accounting firm, one of the "Big Eight" firms, had inquired if he knew any young Jewish accountants it could hire because it didn't have any Jews working in the firm. The family friend told me this was a wonderful opportunity and that I would be made partner and become prosperous. He was shocked when I responded no, and asked why. I told him if I accepted this offer, I would never know if I was successful because I was Jewish or because I was talented and skilled.

I have never once regretted my decision.

[Apr 05, 2021] Only the Retired Professors Dare to Speak Out Freely

Apr 05, 2021 | www.wsj.com

Over the months there have been letters to the editor regarding academia. April 4, 2021 2:59 pm ET

Listen to this article 1 minute 00:00 / 00:37 1x

Over the months there have been letters to the editor regarding academia, "Academic Freedom Long Ago Withered Away" (Letters, March 5) being a case in point. I find it interesting that for the most part they are written by professors emeriti or retired academics, not active ones with a job to lose. This is very telling in and of itself.

Kenneth White

Chicago


[Apr 02, 2021] Who's Hiring And Who's Firing

Apr 02, 2021 | www.zerohedge.com

Not only was the March payrolls report a blockbuster, golidlocks number, much higher than expected but not too high to spark immediate reflation/hike fears thanks to subdued wage inflation, job growth in March was also widespread unlike February, where 75% of all new jobs were waiters and bartenders . By contrast, in March the largest gains occurring across most industries with the bulk taking place in leisure and hospitality, public and private education, and construction.

Here is a full breakdown:

It's hardly a surprise that with the US reopening, the one industry seeing the biggest hiring remains leisure and hospitality where jobs rose by 280,000, as pandemic-related restrictions eased in many parts of the country, with nearly two-thirds of the increase in "food services and drinking places", i.e., waiters and bartenders, which added +176,000 jobs in March.

And another notable change was in the total number of government workers, which surged by 136K in March, reversing the 90K drop in February, as a result of 49.6K state education workers and 76K local government education workers added thanks to the reopening of schools around the country.

Here is a visual breakdown of all the March job changes:

Finally, courtesy of Bloomberg , below are the industries with the highest and lowest rates of employment growth for the most recent month.


7 play_arrow


Jack Offelday 1 hour ago

The "V" recovery. Where Food Service jobs are the new "Golden Age".

Creamaster 47 minutes ago (Edited)

My wife is a nurse in an outpatient office under a large hospital umbrella here. Normally these outpatient spots go within days to a week.

Currently they have 2 openings they have been trying to fill for a few months now. Combine that with the fact my wife got 3 years worth of raises in a single shot, recently and out of the blue for no reason, tells me the hospitla is really screwed trying to fill nursing spots.

After this pandemic crap, it has likely scared alot of people away from entering healthcare, and if a nurse was on the fence about retirement , likely decided to call it quits after all this BS.

newworldorder 45 minutes ago

There are an estimated, 30 million illegals currently in the USA waiting legalization.

WHEN legalization happens, they will bring into the USA (by historical averages,) another 60 to 90 million of their family members in 10 years.

And all of them US Minority workers, by current US Diversity Laws, - same as all Black Americans.

[Apr 02, 2021] 'The world will never be the same-' Coursera CEO on learning post pandemic

Apr 02, 2021 | finance.yahoo.com

'The world will never be the same:' Coursera CEO on learning post pandemic Reggie Wade · Writer Fri, April 2, 2021, 12:43 PM More content below More content below ^IXIC +1.76% COUR +1.73%

The online learning platform Coursera ( COUR ) saw a big pop following its Nasdaq ( ^IXIC ) debut this week. Coursera revenue was up 60% last year, and CEO Jeff Maggioncalda predicts online learning is here to stay even after the pandemic eventually winds down.

"The world needs more access to high-quality learning. ... There will be a new normal that emerges. We don't know what that will look like either in terms of how we work remotely versus in an office and how we will learn online and also on campus. But it's pretty clear that the world will never be the same again and that online learning will be a big part of it," he told Yahoo Finance Live.

"So we really think about the long term, all the structural reasons why people will need to learn continuously through their lives to learn new skills as the world goes more digital," he said.

Dec 27, 2019 Mountain View / CA / USA - Coursera headquarters in Silicon Valley; Coursera is an American online learning platform that offers massive open online courses, specializations, and degrees

One area that Coursera is looking to expand is its degree and certification programs. Maggioncalda tells Yahoo Finance that the company can use technology to shake up traditional degree offerings.

"What we've seen for centuries is that college degrees are the most meaningful, recognized learning credential that there is, and the credential type hasn't really innovated that much over the last period of history. We think with technology, the ability to create not only degrees but other types of credentials," he said.

"It will be a portfolio of credentials. We believe that will serve lifelong learning needs in a world where people need to keep learning, even as they're working," he added.

[Mar 28, 2021] Medicaid Enrollment Grew -30% Year-Over-Year

Mar 28, 2021 | angrybearblog.com

run75441 | March 27, 2021 7:55 pm

HEALTHCARE

Medicaid expansion enrollment grew nearly 30% year-over-year in 19-state sample, Andrew Sprung, XPOSTFACTOID, March 17, 2021

An update on Medicaid expansion enrollment growth since the pandemic struck. Below is a sampling of 19 expansion states through January of this year, and 14 states through February.

Maintaining the assumption, explained here , "relatively slow growth in California would push the national total down by about 2.5 percentage points." These tallies still point to year-over-year enrollment growth of approximately 30% from February 2020 to February 2021.

If that's right, then Medicaid enrollment among those rendered eligible by ACA expansion criteria (adults with income up to 138% FPL) may exceed 19 million nationally and may be pushing 20 million. Assuming the sampling of a bit more than a third of total expansion enrollment represents all expansion states more or less and again accounting for slower growth in California.

[Mar 28, 2021] One year later, unemployment insurance claims remain sky-high

Notable quotes:
"... Last week was the 53rd straight week total initial claims were greater than the second-worst week of the Great Recession. (If that comparison is restricted to regular state claims -- because we didn't have PUA in the Great Recession -- initial claims are still greater than the 14th worst week of the Great Recession.) ..."
Mar 28, 2021 | www.epi.org

One year ago this week, when the first sky-high unemployment insurance (UI) claims data of the pandemic were released, I said " I have been a labor economist for a very long time and have never seen anything like this ." But in the weeks that followed, things got worse before they got better -- and we are not out of the woods yet. Last week -- the week ending March 20, 2021 -- another 926,000 people applied for UI. This included 684,000 people who applied for regular state UI and 242,000 who applied for Pandemic Unemployment Assistance (PUA), the federal program for workers who are not eligible for regular unemployment insurance, like gig workers.

Last week was the 53rd straight week total initial claims were greater than the second-worst week of the Great Recession. (If that comparison is restricted to regular state claims -- because we didn't have PUA in the Great Recession -- initial claims are still greater than the 14th worst week of the Great Recession.)

Figure A shows continuing claims in all programs over time (the latest data for this are for March 6). Continuing claims are currently nearly 17 million above where they were a year ago, just before the virus hit.

FIGURE A Continuing unemployment claims in all programs, March 23, 2019–March 6, 2021 *Use caution interpreting trends over time because of reporting issues (see below)*
Date Regular state UI PEUC PUA Other programs (mostly EB and STC)
2019-03-23 1,905,627 31,510
2019-03-30 1,858,954 31,446
2019-04-06 1,727,261 30,454
2019-04-13 1,700,689 30,404
2019-04-20 1,645,387 28,281
2019-04-27 1,630,382 29,795
2019-05-04 1,536,652 27,937
2019-05-11 1,540,486 28,727
2019-05-18 1,506,501 27,949
2019-05-25 1,519,345 26,263
2019-06-01 1,535,572 26,905
2019-06-08 1,520,520 25,694
2019-06-15 1,556,252 26,057
2019-06-22 1,586,714 25,409
2019-06-29 1,608,769 23,926
2019-07-06 1,700,329 25,630
2019-07-13 1,694,876 27,169
2019-07-20 1,676,883 30,390
2019-07-27 1,662,427 28,319
2019-08-03 1,676,979 27,403
2019-08-10 1,616,985 27,330
2019-08-17 1,613,394 26,234
2019-08-24 1,564,203 27,253
2019-08-31 1,473,997 25,003
2019-09-07 1,462,776 25,909
2019-09-14 1,397,267 26,699
2019-09-21 1,380,668 26,641
2019-09-28 1,390,061 25,460
2019-10-05 1,366,978 26,977
2019-10-12 1,384,208 27,501
2019-10-19 1,416,816 28,088
2019-10-26 1,420,918 28,576
2019-11-02 1,447,411 29,080
2019-11-09 1,457,789 30,024
2019-11-16 1,541,860 31,593
2019-11-23 1,505,742 29,499
2019-11-30 1,752,141 30,315
2019-12-07 1,725,237 32,895
2019-12-14 1,796,247 31,893
2019-12-21 1,773,949 29,888
2019-12-28 2,143,802 32,517
2020-01-04 2,245,684 32,520
2020-01-11 2,137,910 33,882
2020-01-18 2,075,857 32,625
2020-01-25 2,148,764 35,828
2020-02-01 2,084,204 33,884
2020-02-08 2,095,001 35,605
2020-02-15 2,057,774 34,683
2020-02-22 2,101,301 35,440
2020-02-29 2,054,129 33,053
2020-03-07 1,973,560 32,803
2020-03-14 2,071,070 34,149
2020-03-21 3,410,969 36,758
2020-03-28 8,158,043 0 52,494 48,963
2020-04-04 12,444,309 3,802 69,537 64,201
2020-04-11 16,249,334 31,426 216,481 89,915
2020-04-18 17,756,054 63,720 1,172,238 116,162
2020-04-25 21,723,230 91,724 3,629,986 158,031
2020-05-02 20,823,294 173,760 6,361,532 175,289
2020-05-09 22,725,217 252,257 8,120,137 216,576
2020-05-16 18,791,926 252,952 11,281,930 226,164
2020-05-23 19,022,578 546,065 10,010,509 247,595
2020-05-30 18,548,442 1,121,306 9,597,884 259,499
2020-06-06 18,330,293 885,802 11,359,389 325,282
2020-06-13 17,552,371 783,999 13,093,382 336,537
2020-06-20 17,316,689 867,675 14,203,555 392,042
2020-06-27 16,410,059 956,849 12,308,450 373,841
2020-07-04 17,188,908 964,744 13,549,797 495,296
2020-07-11 16,221,070 1,016,882 13,326,206 513,141
2020-07-18 16,691,210 1,122,677 13,259,954 518,584
2020-07-25 15,700,971 1,193,198 10,984,864 609,328
2020-08-01 15,112,240 1,262,021 11,504,089 433,416
2020-08-08 14,098,536 1,376,738 11,221,790 549,603
2020-08-15 13,792,016 1,381,317 13,841,939 469,028
2020-08-22 13,067,660 1,434,638 15,164,498 523,430
2020-08-29 13,283,721 1,547,611 14,786,785 490,514
2020-09-05 12,373,201 1,630,711 11,808,368 529,220
2020-09-12 12,363,489 1,832,754 12,153,925 510,610
2020-09-19 11,561,158 1,989,499 10,686,922 589,652
2020-09-26 10,172,332 2,824,685 10,978,217 579,582
2020-10-03 8,952,580 3,334,878 10,450,384 668,691
2020-10-10 8,038,175 3,711,089 10,622,725 615,066
2020-10-17 7,436,321 3,983,613 9,332,610 778,746
2020-10-24 6,837,941 4,143,389 9,433,127 746,403
2020-10-31 6,452,002 4,376,847 8,681,647 806,430
2020-11-07 6,037,690 4,509,284 9,147,753 757,496
2020-11-14 5,890,220 4,569,016 8,869,502 834,740
2020-11-21 5,213,781 4,532,876 8,555,763 741,078
2020-11-28 5,766,130 4,801,408 9,244,556 834,685
2020-12-05 5,457,941 4,793,230 9,271,112 841,463
2020-12-12 5,393,839 4,810,334 8,453,940 937,972
2020-12-19 5,205,841 4,491,413 8,383,387 1,070,810
2020-12-26 5,347,440 4,166,261 7,442,888 1,450,438
2021-01-02 5,727,359 3,026,952 5,707,397 1,526,887
2021-01-09 5,446,993 3,863,008 7,334,682 1,638,247
2021-01-16 5,188,211 3,604,894 7,218,801 1,826,573
2021-01-23 5,156,985 4,779,341 7,943,448 1,785,954
2021-01-30 5,003,178 4,062,189 7,685,857 1,590,360
2021-02-06 4,934,269 5,067,523 7,520,114 1,523,394
2021-02-13 4,794,195 4,468,389 7,329,172 1,437,170
2021-02-20 4,808,623 5,456,080 8,387,696 1,465,769
2021-02-27 4,457,888 4,816,523 7,616,593 1,237,929
2021-03-06 4,458,888 5,551,215 7,735,491 1,207,201

Other programs (mostly EB and STC) PUA PEUC Regular state UI Jul 2019 Jan 2020 Jul 2020 Jan 2021 0 10,000,000 20,000,000 30,000,000 40,000,000 Chart Data Caution: Trends over time in PUA claims may be distorted because when an individual is owed retroactive payments, some states report all retroactive PUA claims during the week the individual received their payment.

Click here for notes.

Source: U.S. Employment and Training Administration, Initial Claims [ICSA], retrieved from Department of Labor (DOL), https://oui.doleta.gov/unemploy/docs/persons.xls and https://www.dol.gov/ui/data.pdf , March 25, 2021. Share Tweet Embed Download image

The good news in all of this is Congress's passage of the sweeping $1.9 trillion relief and recovery package. It is both providing crucial support to millions of working families and setting the stage for a robust recovery. One big concern, however, is that the bill's UI provisions are set to expire the first week in September, when, even in the best–case scenario, they will still be needed. By then, Congress needs to have put in place long-run UI reforms that include automatic triggers based on economic conditions.

[Mar 28, 2021] Need Amid Plenty- Richest US Counties Are Overwhelmed by Surge in Child Hunger

Mar 28, 2021 | www.nakedcapitalism.com

The financial fallout of covid-19 has pushed child hunger to record levels. The need has been dire since the pandemic began and highlights the gaps in the nation's safety net.

While every U.S. county has seen hunger rates rise, the steepest jumps have been in some of the wealthiest counties, where overall affluence obscures the tenuous finances of low-wage workers. Such sudden and unprecedented surges in hunger have overwhelmed many rich communities, which weren't nearly as ready to cope as places that have long dealt with poverty and were already equipped with robust, organized charitable food networks.

Data from the anti-hunger advocacy group Feeding America and the U.S. Census Bureau shows that counties seeing the largest estimated increases in child food insecurity in 2020 compared with 2018 generally have much higher median household incomes than counties with the smallest increases. In Bergen, where the median household income is $101,144, child hunger is estimated to have risen by 136%, compared with 47% nationally.

That doesn't mean affluent counties have the greatest portion of hungry kids. An estimated 17% of children in Bergen face hunger, compared with a national average of around 25%.

But help is often harder to find in wealthier places. Missouri's affluent St. Charles County, north of St. Louis, population 402,000, has seen child hunger rise by 69% and has 20 sites distributing food from the St. Louis Area Foodbank. The city of St. Louis, pop. 311,000, has seen child hunger rise by 36% and has 100 sites.

"There's a huge variation in how different places are prepared or not prepared to deal with this and how they've struggled to address it," said Erica Kenney , assistant professor of public health nutrition at Harvard University. "The charitable food system has been very strained by this."

Eleni Towns, associate director of the No Kid Hungry campaign , said the pandemic "undid a decade's worth of progress" on reducing food insecurity, which last year threatened at least 15 million kids.

And while President Joe Biden's covid relief plan, which he signed into law March 11, promises to help with anti-poverty measures such as monthly payments to families of up to $300 per child this year, it's unclear how far the recently passed legislation will go toward addressing hunger.

"It's definitely a step in the right direction," said Marlene Schwartz , director of the Rudd Center for Food Policy and Obesity at the University of Connecticut. "But it's hard to know what the impact is going to be."


Randall Flagg , March 28, 2021 at 8:12 am

Let's just keep spending all that money on our misadventures around the world though. I believe in a strong defense but just that, defense. I would like to hear the warmongers justify the ridiculous amounts of money spent on that, yet we can take care of our own to a basic minimum. What the hell happened to this country over the years

Massinissa , March 28, 2021 at 8:30 am

"What the hell happened to this country over the years "

4 to 5 decades of neoliberalism will do that. Its like the nation-state equivalent of being addicted to a drug. Makes you feel better in the short term: Reagan America worked great! In the 80s. Long term everything gets screwed over, health wise.

JBird4049 , March 28, 2021 at 5:36 pm

Ronnie Raygun was patriotic meth. The only good thing he did as the President was getting the number of American and Soviet nuclear warheads reduced.

mrsyk , March 28, 2021 at 8:34 am

Nothing says "Third World!" like 25% child food insecurity rate.

roxan , March 28, 2021 at 8:44 am

Typical banana republic, spending on war and ridiculous, dysfunctional but grandiose weapons, usually shown off in parades – lorded over by a rich oligarchy – while people starve and live in hovels. However, a healthy well-fed population is the source of a nation's strength, so we are well on the way to fading into a has-been.

Bob Hertz , March 28, 2021 at 9:14 am

Here is the real problem .

"Sierra had to leave her Amazon warehouse job when the kids' school went remote, and Morales stopped driving for Uber when trips became scarce and he feared getting covid on top of his asthma".

In other words, our skimpy unemployment insurance systems in man states, plus gaps in the pandemic special relief, plus the insufferable arrogance of closing the schools with no financial relief for parents, and here we are.

Thanks for posting, this is indeed a tragedy.

The Rev Kev , March 28, 2021 at 10:21 am

Sorry guys but this is Failed Nation stuff. I am one of those that happen to believe that it is the most fundamental duty of a State to protect children and pregnant women. Anything after that is a bonus if not an embellishment. America is not only the wealthiest country in the world but is also the wealthiest in history. And yet child hunger is tolerated. And just to add the bread slices to this s*** sandwich, there are about 800 billionaires in the US at the moment. How many of them could wake up one day and say to themselves: 'You know what? I am going to abolish child hunger in America with my money and be remembered forever and even have statues raised to myself!' But it never happens.

tegnost , March 28, 2021 at 11:01 am

America's incredible success is going to require americans to have a vastly reduced standard of living to the point that they are equally as poverty stricken as the poors the world over. Globalisation really makes any other out come unfair, and we must globalize. Everyone being a poverty stricken gig worker is the plan. Here in this case an amazon worker and an uber driver, on the dole. In reality, I think the biden admin has just dusted off the plans that were to be unleashed under hillary, that's one of the reasons it all seems so ham handed. The TPP was going to keep the world in our orbit and create supra national barriers to autonomy in order to stop what is in fact happening now where they are free to choose between china/russia and the US. From this perspective trump really screwed the plans of the despicables.

Synoia , March 28, 2021 at 11:56 am

America's incredible past success .

1. It in the past
2. It was built on predation against the British Empire

Who needs a German Enemy with friends who help with lend-lease, Cancel the German War debt, and not their "allies." Combined with subverting the British Empires rule with a twisted version of self-rule – Governance dependent on not having US Sanctions, aka imperialism absent responsibility.

This after dispossession the local US natives of the ancestral lands by force, and tricky legalities.

tegnost , March 28, 2021 at 12:10 pm

I agree that it's in the past but people ordering their entire life from amazon that I know think this is the beginning of our incredible greatness.

The S , March 28, 2021 at 1:45 pm

It's not a failed nation, it's how the US was always designed to work. It might have had some good years of P.R. and marketing after WWII but it was always a lie. The Constitution was written by a bunch of wealthy slavers that hated commoners and feared economic democracy and popular governance. The US became the wealthiest country by starving kids and killing people the world over; it was forced into a bit of wealth distribution for a few decades by multi-state steel strikes, the Bonus Army, armed miners unions, tenants unions, the Farmers Holiday movement, and the contrast of a Soviet Union that was advancing by leaps and bounds economically while the US festered in a depression. But whether it was the indigenous, the slaves, the Filipinos, the Haitians, the Chinese, the Nicaraguans, the Mexicans, the Hondurans, the Iranians, the Guatemalans, the Chileans, the Koreans, the Vietnamese, the Laotians, the Cambodians, the Russians, the Iraqis, the Libyans, the Syrians, or it's own citizens, the US has always killed for money. If it runs out of places to take over and expand it'll just starve the kids at home to make a buck. It'll charge the poor overdraft fees for having no money then chalk that up as a financial service. It'll have its state security forces kill you for a traffic stop and then beat every citizen en masse that dares to object. It'll cannibalize the very infrastructure and fabric of society and hand it over to oligarchs and private equity. It'll give all the wealth to people who charge usury and own embroidered pieces of paper but who don't actually do anything useful or necessary. And the marks that watch US movies and television and news will believe that the US is somehow benevolent and that they can somehow bend the will of the rapacious through the very electoralism that the wealthy designed to keep the poor from having a say.

Starving children. Children in concentration camps. Children forced into schools during a plague. These aren't 'oopsies.' This is how the country is set up to run. Look at how much money the wealthy gained by letting a pandemic run wild. Look at how the entire investment class should have gone bankrupt in 2008 but instead workers were fired from jobs and cast out of their homes by the millions. Now the kids of those sacrificed are starving right next to the wealthy that should have gone bust. The affluent are literally taking food out of kids mouths because they won't let their precious stocks or real estate go down in price one iota. The only good thing about kids starving in wealthy districts is that a Robin Hood won't have to go to far to find money to give to those kids.

drumlin woodchuckles , March 28, 2021 at 4:50 pm

The 800 billionaires consider child hunger in America to be one of their greatest achievements.

The child hunger in America problem won't be solved until the 800 billionaires and all their ideological supporters and economic servants have been " rounded up and exterminated", so to speak.

Maritimer , March 28, 2021 at 4:19 pm

Thank you, Palaver. All "food" is not equal. Nutrition should be the emphasis.

In my jurisdiction, the Food Bank Industry encourages donations of packaged, processed, industrialized "food". For example, fifty pounds of oats gives much more nutrition bang for the buck than the equivalent $$$ amount of Conglomerate Cereals.

At my Conglomerate Stupormarket, they have a bin for unthinking donors to drop in "food" that was bought in the Stupor. I've seen poptarts, jars of frosting, jello, etc. all sorts of "food". And why do I think the Stupormarket just recycles a lot of this stuff back onto their shelves, making a huge profit?

Next time you donate, check out what your Food Bank is actually peddling and who runs it. Food Banks have become a huge Industry and we know what happens to huge Industries.

Louis Fyne , March 28, 2021 at 4:47 pm

My mother gives rides to some of her friends (without expectation of any compensation cuz friendship). In return, some of the friends give random items from their weekly food bank allotment.

the food is shelf-stable processed items with produce and baked goods nearing expiration from the local gourmet independent chain and the local Whole Foods.

Manslow's hierarchy of needs applies obviously and the food banks do truly heroic deeds daily, but long-term people can't live healthy lives eating boxed Mac 'n Cheese, PBJ sandwiches and organic cookies every single day.

I say expand WIC spending and eligibility, but as I'm not too familiar with that program, dunno if that'll do any good.

[Mar 28, 2021] In the USA, the top one percent of household net worth starts at $11,099,166

Mar 28, 2021 | www.unz.com

J , says: March 27, 2021 at 6:23 am GMT • 1.6 days ago

@anonymous

In the USA, the top one percent of household net worth starts at $11,099,166.

It is seems improbable that the commenter achieved that goal. May be he is thinking of 1% of Indonesia or Philippines. The reference to tenant farmers also appears to indicate a country like that. Retiring to live in the Indonesian countryside is not my idea of a good old age. Correct me please if I am wrong.

[Mar 28, 2021] D.C. spent around $30,115 per pupil in 2016-17, while in 2017-18, nearby Arlington County was expected to spend $19,340,

Mar 28, 2021 | www.unz.com

Seamus , says: March 25, 2021 at 8:32 pm GMT • 2.8 days ago

"Underfunded" is a euphemism for "have students with low test scores." E.g., "Washington D.C.'s underfunded schools."

D.C. spent around $30,115 per pupil in 2016-17, while in 2017-18, nearby Arlington County was expected to spend $19,340, the City of Falls Church to spend $18,219; the City of Alexandria, $17,099; Montgomery County, $16,030; Fairfax County, $14,767; Prince George's County, $13,816; Loudoun County, $13,688; City of Manassas, $12,846; City of Manassas Park, $11,242; and Prince William County, $11,222.

But I suppose those are hate facts.

https://townhall.com/columnists/terryjeffrey/2020/09/16/washington-dc-public-schools-spend-30k-per-student-23-of-8th-graders-proficient-in-reading-n2576265

https://www.insidenova.com/news/arlington/for-good-or-ill-arlington-per-student-spending-again-tops-region/article_0f441fe4-cef5-11e7-b4d4-cf5ac038e374.html

[Mar 28, 2021] Rudy Acu a on neoliberalism

Mar 28, 2021 | www.msn.com

In 2015, you wrote extensively about your concerns over neoliberalism in academia, calling it the worst threat to education. You wrote: "In order to offset the lack of public funding, administrators have raised tuition with students becoming the primary consumers and debt-holders. Institutions have entered into research partnerships with industry shifting the pursuit of truth to the pursuit of profits." To accelerate this "molting," they have " hired a larger and larger number of short-term, part-time adjuncts ."

This has created large armies of transient and disposable workers who "are in no position to challenge the university's practices or agitate for "democratic rather than monetary goals."

Yes, neoliberalism is hegemonic. It affects all minority communities...

[Mar 28, 2021] You know how we raised black test scores to the level demanded? We fudged the numbers

Mar 28, 2021 | www.unz.com

Anonymous [369] Disclaimer , says: March 25, 2021 at 11:18 am GMT • 3.2 days ago

"Underfunded" is a euphemism for "have students with low test scores." E.g., "Washington D.C.'s underfunded schools." Presumably, it means "underfunded relative to some theoretical amount of money, such as a gajillion dollars, that would be sufficient to raise these students' test scores to average."

My dad was a school administrator in one of the top county public school systems in the country. A politically deep-blue part of the country. He retired in the early '80's. I remember him telling me once after he retired that his school(s) would get constant demands from the school board to raise black (not many Hispanics then) test scores. He said the school(s) focused all kinds of resources on black students which yielded no appreciable results. He then said, "You know how we raised black test scores to the level demanded? We fudged the numbers."

[Mar 27, 2021] I have been surprised by the explosion in the numbers of people locally living in cars and vans lately

Notable quotes:
"... freedom is material: a human being must be free from material privation, here and now, in life (and not in the mythical afterlife of reincarnation) in order to be really free. In other words, freedom from need is true freedom. ..."
Mar 27, 2021 | www.moonofalabama.org

vk , Mar 24 2021 17:07 utc | 3

Health is primary indicator of people's happy life: Xi

Marx's concept of freedom is completely different from the liberal or pre-liberal concepts of freedom. For Marx, freedom is material: a human being must be free from material privation, here and now, in life (and not in the mythical afterlife of reincarnation) in order to be really free. In other words, freedom from need is true freedom.

Human beings can only be materially free. Don't fall for the moral victories of liberalism, the snake oil salesmen's promise of a spot in Paradise from the Abrahamics or the nihilist bullshittery from the Buddhists et al.


William Gruff , Mar 24 2021 17:47 utc | 6

vk @3

Excellent point by vk here. Despite sometimes pretending to myself that I am a Buddhist (I am really good at meditating!), real freedom is being free from need. Abstract and metaphysical "freedoms" are luxuries of the wealthy that few under the thumb of the empire can afford.

I have been surprised by the explosion in the numbers of people locally living in cars and vans lately. I guess from my Buddhist perspective they have been freed from the attachment to a residence. Who could have guessed that capitalism would be such a good teacher of the path to enlightenment?

karlof1 , Mar 24 2021 21:30 utc | 50

John @44--

It's freedom from Want. The Four Freedoms as articulated by FDR in 1941 were:

1.Freedom of speech
2.Freedom of worship
3.Freedom from want
4.Freedom from fear

Earlier this year on the 80th anniversary of FDR's speech, I wrote a series of comments on the topic. They remain the four main tasks needing to be accomplished for the Common Man to be genuinely free. At the time, they were to be the main goals of WW2; goals that were further articulated by Henry Wallace in 1942 & '43 in his speeches and writings. Currently, several nations have accomplished those four goals; none of them is a NATO/Neoliberal nation however.

[Mar 22, 2021] I am a teacher in Australia's oldest university whose new vice-chancellor (CEO) is a pure technocrat without academic background or a PhD.

Mar 22, 2021 | www.moonofalabama.org

Patroklos , Mar 21 2021 18:58 utc | 34

In the Spectator article linked -- thank you b and all -- Kimball quotes a canny friend who said "I'd rather be ruled by the Chinese than the Yale faculty". Yes, I thought, that is how the west is now.

I am a teacher in Australia's oldest university whose new vice-chancellor (CEO) is a pure technocrat without academic background or a PhD.

This is the strange norm now: grey neoliberal managers are rushed into areas that require specialists in order to 'streamline' or 'set up structures of accountability' or simply hollow out the joint. This guy sees 'tech' as the answer, so will accelerate the pedagogical catastrophe taking place across the world (Zoom-'teaching') whose implications are dystopian, psychologically alienating and frankly depressing.

He is the Yale faculty at the local level; Blinken is the Yale faculty on the diplomatic stage: a recognisable and familiar type of manager from no particular background whose career is made leap-frogging from bureaucratisation process to bureaucratisation process.

He berates the Chinese thinking that they are the old faculty resisting the newspeak of neoliberal managerialism, an empty meaningless feedback loop of tickboxing. The 'rules-based order' is some imaginary thing produced in the mind of grey men to obscure their self-aggrandisement in a vacuum; zero time has been invested in any thought about it. The 'Biden-Doctrine' is a vacuum of intellectual reflection. In short, Blinken simply doesn't care about his job, he just cares about ticking a box on his CV as he sets himself up for the promotion/next job. Where once we had career specialists dedicated to the actual job (like Chas Freeman) now the whole world is run by these empty people. The consequences are very depressing.


Fyi , Mar 21 2021 19:54 utc | 44

Mr. Patroklos

University administrators need not have doctoral or other academic achievements. What is needed, in any enterprise, is the commitment to the health and to prosperity of that enterprise.

In America, they promoted men who promised lower taxes and easier money. Men with dubious loyalty to the long term health and well being of that country or her population. The results is there for the world to see. Same in Italy; Mr. Berlusconi would promise to cut taxes, and would omit to also mention that he would also cut state services. And foolish plebians would vote for him.

When the late Mr. Khomeini came to power in Iran, one of his observations was that he could not find enough men with integrity to put them in executive positions.

I would like to respectfully suggest to try to preserve what you can but do not try to be a lean department or program. Maintain the "fat" so that you van save as much of the scholarly muscle as you can when the cutting times come.

Also, reach out to the public and the alumni and ask for whatever help you can obtain. Use Kung-Fu approaches, never attack directly. Keep trying to find alternative careers for your older or newer faculties. Take any and all positive action and try to preserve Learning and Scholarship for the future generations.

The late Joseph Stalin observed: "Cadres decide everything."

May be you cannot stop this, but you can delay and dlelay and derail, thus buying time for people to adjust to their new circumstances.

lysias , Mar 21 2021 19:59 utc | 45

That would be Mark Scott as Vice Chancellor of the University of Sydney? What a decline from when Enoch Powell was Professor of Greek at Sydney. I greatly admire Powell's scholarly work on Herodotus and his edition of Thucydides (one of my set texts when I was at Oxford). How much of that work did he do at Sydney?

[Mar 15, 2021] Custom Degrees Help Grads and Employers

This is about neoliberlization of education. Early over-specialization essentially is detrimental to professional development. this is clearlly a neoliberal approach -- to get ready cogs into the machinery that does not reuare any additional trianing to be productive and save on training.
Like Knuth said on a different potic "Premature optimization is the root of al evil"
Mar 14, 2021 | www.wsj.com

Why has it taken so long for professional-services firms in the U.S. to adopt a bespoke graduate-degree approach ( "Employers Customize Business Degrees," Business News, March 5)?

The former president of the University of Limerick, Edward Walsh, was way ahead of the game in this regard. Dr. Walsh arguably created a new norm in Irish third-level education back in the early 1970s, from the university's modest beginnings in the "White House" as the building was and is still known, to a now very impressive campus with a proud record of innovation in education and excellence in research and scholarship. Dr. Walsh customized our degrees to match the requirements of Irish companies and industry.

My bespoke electronics-production degree was customized because the electronics industry in Ireland at the time found that many electronic-engineering grads applying for production-oriented positions weren't suitably qualified. As a graduate in engineering, I believe it made my finding a job much easier than some of my counterparts in other universities, both in Ireland and abroad. Our degrees opened many doors for my class in a lot of different industries, and I believe they still hold us in good stead today when changing our careers or setting up indigenous businesses.

me title=

Maurice D. Landers

Since inception in 2011, the Commercial Banking Program in the Mays Business School of Texas A&M University has joined with the banking industry in implementing and teaching a required commercial-banking curriculum that is designed to position our graduates for successful careers in commercial banking. The banking industry provides us with valuable input on essential training and skills they require of our students to be considered for employment. In addition, selected parts of the program curriculum are taught by senior banking executives from our advisory board of directors. Students receive current, relevant banking-industry training taught by banking executives positioning them for successful careers in commercial banking. Banks find our graduates are trained according to industry requirements and are productive sooner than their peers, and the Commercial Banking Program is helping alleviate the shortage of trained talent within the banking industry.

W. Dwight Garey

Texas A&M University

College Station, Texas

[Mar 12, 2021] The US economy still has almost 10 million fewer jobs than it did before the coronavirus pandemic took hold

Mar 12, 2021 | finance.yahoo.com

The jobs picture overall has been improving with 379,000 workers added in February , although the U.S. economy still has almost 10 million fewer jobs than it did before the coronavirus pandemic took hold. Economists have been revising their employment and GDP forecasts are higher.

Goldman Sachs Chief Economist Jan Hatzius, for example, wrote in a report this week that the jobless rate would fall to 4.1% by the end of 2021, from 6.2% last month.

Hyams has been seeing similar encouraging signs on Indeed, with postings on the site already lapping where they were pre-pandemic. "On Indeed, when we look at new job postings and our benchmark pre-pandemic of February 1, 2020, at the end of this February we were up 5% year-over-year. That's still with entire sectors completely shut down," he said.

As for where the hottest demand lies for new jobs, Hyams pointed to e-commerce-related occupations including logistics, warehousing and delivery, as well as jobs in health care and pharmacy.

While some of those openings may require showing up regularly in-person, many will not, which again feeds into Hyams' thesis that interviews will remain virtual.

"If you're going to be a remote worker, interviewing over video actually makes a whole lot more sense. It's more convenient. It will cut down on travel," he said.

That means many interviewees can continue to pull their blazers and ties out of the closet -- along with their sweatpants.

[Mar 12, 2021] The pandemic 'will change how hiring is done forever,' says CEO of jobs website Indeed

Mar 12, 2021 | finance.yahoo.com

Remember job interviews pre-pandemic? The jitters, the choosing of just the right suit, the race to get there early, maybe even the drive across town or flight across the country for a shot at a new opportunity?

Like most everything else, the pandemic changed that dynamic. The jitters may remain, but in-person meetings are largely off the table, interviews among them. The CEO of one of the most-trafficked jobs websites says it's likely to stay that way even after people get back to the office.

"People being able to conduct an interview from the safety and convenience of their own home is going to change hiring forever," said Chris Hyams, Indeed CEO, in an interview with Yahoo Finance Live. "We believe this is the beginning of a massive secular shift."

"In April, we saw the number of requests for interviews to happen over video shoot up by 1,000%. Even as things have started to stabilize and the economy has opened up over the last 11 months, we've seen that continue to grow," Hyams said.

The jobs picture overall has been improving with 379,000 workers added in February , although the U.S. economy still has almost 10 million fewer jobs than it did before the coronavirus pandemic took hold. Economists have been revising their employment and GDP forecasts are higher. Goldman Sachs Chief Economist Jan Hatzius, for example, wrote in a report this week that the jobless rate would fall to 4.1% by the end of 2021, from 6.2% last month.

Hyams has been seeing similar encouraging signs on Indeed, with postings on the site already lapping where they were pre-pandemic. "On Indeed, when we look at new job postings and our benchmark pre-pandemic of February 1, 2020, at the end of this February we were up 5% year-over-year. That's still with entire sectors completely shut down," he said.

As for where the hottest demand lies for new jobs, Hyams pointed to e-commerce-related occupations including logistics, warehousing and delivery, as well as jobs in health care and pharmacy.

While some of those openings may require showing up regularly in-person, many will not, which again feeds into Hyams' thesis that interviews will remain virtual.

"If you're going to be a remote worker, interviewing over video actually makes a whole lot more sense. It's more convenient. It will cut down on travel," he said.

That means many interviewees can continue to pull their blazers and ties out of the closet -- along with their sweatpants.

[Mar 05, 2021] The Feedback Loop Between The Fed The Elite

Mar 05, 2021 | www.zerohedge.com

More Evidence Of The Loop

The New York Times recently went further into the numbers:

"America's economy has almost doubled in size over the last four decades, but broad measures of the nation's economic health conceal the unequal distribution of gains. A small portion of the population has pocketed most of the new wealth, and the coronavirus pandemic is laying bare the consequences of the unequal distribution of prosperity."

Of course, a significant contributor to the "wealth gap" was the rise in the stock market fostered by trillions of liquidity injected by the Federal Reserve. As NYT noted:

"The affluent, of course, do tend to own stock, and the median net worth of the richest 10 percent of households rose 13 percent from 2007 to 2016 (the last year for which the Fed has released data).

Another way to view this issue is by looking at household net worth growth between the top 10% and everyone else.

"Wealth disparities have widened over time. In 1989, the bottom 90 percent of the U.S. population held 33 percent of all wealth. By 2016, the bottom 90 percent of the population held only 23 percent of the wealth. The wealth share of the top 1 percent increased from about 30 percent to about 40 percent over the same period." – Equitable Growth

Such is more visible when you see that since 2007, the ONLY group has seen an increase in net worth in the top 10% of the population. Such is also the group that owns 90% of the stock market as discussed in "How The Fed Made The Top 10% Richer."

" That is not economic prosperity. It is a distortion of economics."

An Elite Club

Central Bank's globally sought to stoke economic growth by inflating asset prices. Unfortunately, the consumption of the benefit was only those with savings and discretionary income to invest.

In other words, the stock market became an "exclusive" club for the elite.

While monetary policy increases the wealth of those that have wealth, the Fed mistakenly believed the "trickle-down" effect would be enough to stimulate the entire economy.

It hasn't.

The sad reality is that these policies only acted as a transfer of wealth from the middle class to the wealthy. Such created one of the largest "wealth gaps" in human history. Via Forbes :

"'The top 10% of the wealth distribution hold a large and growing share of U.S. aggregate wealth, While the bottom half hold a barely visible share.' Fed economists wrote in a paper outlining the new data set on inequality. The charts show that 'while the total net worth of U.S. households has more than quadrupled in nominal terms since 1989, that increase accrued more to the top than the bottom.'"

A recent report from BCA Research confirms the same showing the increase in wealth of the top 10% as compared to everyone else.

Lack Of Capital

The current economic expansion is already the longest post-WWII expansion on record. Of course, that expansion came from artificial interventions rather than stable organic economic growth. As noted, while the financial markets have soared higher in recent years, it bypassed a large portion of Americans. Such was NOT because they were afraid to invest, but because they had NO CAPITAL with which to invest.

The ability to "maintain a certain standard of living" remains problematic for many forcing them further into debt.

"The debt surge is partly by design. A byproduct of low borrowing costs the Federal Reserve engineered after the financial crisis to get the economy moving. It has reshaped both borrowers and lenders. Consumers increasingly need it. Companies increasingly can't sell their goods without it. And the economy, which counts on consumer spending for more than two-thirds of GDP, would struggle without a plentiful supply of credit." – WSJ

I often show the "gap" between the "standard of living" and real disposable incomes. In 1990, incomes alone were no longer able to meet the standard of living. Therefore, consumers turned to debt to fill the "gap."

However, following the "financial crisis," even the combined income and debt levels no longer filled the gap. Currently, there is almost a $2150 annual deficit facing the average American. (Note: this deficit accrues every year, which is why consumer credit keeps hitting new records.)

The Rest Have Debt

The debt-to-income problem keeps individuals from building wealth, and government statistics obscure the fundamental reality. We discussed this point in detail in the " Illusion Of Soaring Savings."

" The median net worth of households in the middle 20% of income rose 4% in inflation-adjusted terms to $81,900 between 1989 and 2016. That is the latest available data. For households in the top 20%, median net worth more than doubled to $811,860. And for the top 1%, the increase was 178% to $11,206,000.

The value of assets for all U.S. households increased from 1989 through 2016 by an inflation-adjusted $58 trillion. A full 33% of that gain -- $19 trillion -- went to the wealthiest 1%, according to a Journal analysis of Fed data." – WSJ

Of course, if the Fed's actions to inflate asset prices worked, then wealth distribution would be more even. Importantly, we wouldn't see more than 50% of Americans unable to meet a $500 emergency.

The single truth of a decade of monetary and fiscal interventions is this:

"The top 10% of the economy has assets, the bottom 90% has the debt."

The Fed Does Have A Choice

The Fed does have a choice that could alter the current wealth inequality dynamic:

  1. Allow capitalism to take root by allowing corporations to fail and restructure. A needed process after spending a decade leveraging themselves to the hilt, buying back shares, and massively increasing executive wealth while compressing workers' wages. Or,

  2. Continue to bailout "bad actors" and further forestall the "clearing process" that would rebalance the economy and allow for increased future organic economic growth.

As the Fed's balance sheet rises past $7-Trillion, they chose to impede the "clearing process" once again. By not allowing for debt to fail, corporate restructuring, and "socializing the losses," they removed the risk of speculative practices.

Such has ensured the continuation of "bad behaviors."

Unfortunately, given we have a decade of experience watching the "wealth gap" grow, the next decade will only see the "gap" worsen.

The obvious question we should be asking is:

"If we are in a booming economy, as supposedly represented by surging asset prices, then why are Central Banks globally acting to increase financial stimulus for the market?"

The trap the Fed has fallen into is that markets are predicated on ever-cheaper cash being freely available. Even the faintest threat that the cash might become more expensive or less available causes shock waves.

Such was seen in late 2018 when the Fed signaled it might increase the pace of normalizing monetary policy. The markets imploded, and the Fed halted its plan of shrinking its balance sheet. Then, during the pandemic, the Fed flooded the system with liquidity to halt a market crash.

Equality In Misery

The reality is the Fed has left unconventional policies in place for so long after the "Financial Crisis," the markets can no longer function without them. Risk-taking, and the build-up of financial leverage, have removed any ability to "normalize" monetary policy. At least not without triggering violent market convulsions.

Given there is too much debt, too much activity predicated on ultra-low interest rates, and confidence hinging on inflated asset values, the Fed has no choice but to keep pushing liquidity until something eventually "pops."

Of course, it will be the bottom 90% that absorbs the losses. As noted by Sven Henrich previously:

"In a world of measured low inflation and weak wage growth easy central bank money creates vast price inflation in the assets owned by the few making the rich richer, but also enables the taking on ever higher debt burdens leaving everyone else to foot the ultimate bill."

" That is the measured outcome of the central bank easy money dynamic. After decades, it has now taken on new obscene forms in the past 10-years with absolutely no end in sight."

For the world's elite, their view of the world is far different than the reality the rest face.

Of course, this also explains much of the recent election outcomes.

When "capitalism" isn't allowed to work for the "equality" of the whole, the populous will "vote" themselves "equality in misery."


Lordflin 11 hours ago remove link

The so called market has become nothing more than an open vein... draining the life's blood of civilization down the maws of lifeless parasites...

They are killing the host...

2banana 11 hours ago

In the era of insanely cheap and easy money, those closest to the money spigot get insanely wealthy for doing nothing.

Those in the back of the line get $75,000 communications degrees, and 27% credit cards.

Nothing explodes "wealth inequality" like cheap and easy money.

TreeTopSlick 11 hours ago remove link

The Cantillon Effect in action. Never been so obvious in America than today.

2banana 10 hours ago

Great analogy.

Cantillon's original thesis outlines how rising prices affect different sectors at different times and suggests that time difference effectively acts as a taxing mechanism. In other words, the first sectors to receive the newly created money enjoy higher profits as their pay increases, but general costs are still low. On the other hand, the last sectors in which prices rise (where there is more economic friction) face higher costs while still producing at lower prices.

Alice-the-dog 11 hours ago

The "monetary policy that created a feedback loop between the Fed and the elite" isn't a by product, it's a design feature.

Crow-Magnon 11 hours ago

"If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered."

~ Thomas Jefferson

Famous Quote by Thomas Jefferson - Liberty Quotes (libertytree.ca)

GSD 11 hours ago remove link

The elite literally have their own $$ printer

Shemp 4 Victory 11 hours ago remove link

Here are the political affiliations of America's 50 richest families

You've both been bamboozled. The richest people in the country may pretend to have political affiliations, but it's just a distraction. The Capitol Hill Whores are bought off very cheaply, which is why the wealthy spend their money on both D-whores and R-whores.

It is in the interest of the very wealthy to keep the D/R, left/right, red/blue charade going because it keeps peoples' anger focused on the paid actors instead of looking for who is really screwing the country. They've got nothing to worry about as long as they can keep the unwashed rabble fighting against each other.

Mary Jane 10 hours ago remove link

99% of Americans can't hold that thought in their heads. They can only hold the left/right, red/blue understanding in their heads. One is their team, just as in Sports, and their team must win. It doesn't matter that they just shelled out money to the owner of the stadium, and the franchises, who could care less who won as long as the money keeps coming in. Very similar, to the bread and circus routines of the Roman Empire's Coliseum, no one ever looked at the wealth of the Emperor.

Apocalypse2020 8 hours ago

"The super-rich will have to keep up the pretense that national politics might someday make a difference. Since economic decisions are their prerogative, they will encourage politicians of both the Left and the Right, to specialize in cultural issues. The aim will be to keep the minds of the proles elsewhere – to keep the bottom 75 percent of Americans and the bottom 95 percent of the world's population busy with ethnic and religious hostilities, and with debates about sexual mores. If the proles can be distracted from their own despair by media-created pseudo-events the super-rich will have little to fear."

Richard Rorty, 1998

Sound of the Suburbs 7 hours ago remove link

What has happened to inequality?

Pretty much what you would expect really.

Mariner Eccles, FED chair 1934 – 48, observed what the capital accumulation of neoclassical economics did to the US economy in the 1920s.

"a giant suction pump had by 1929 to 1930 drawn into a few hands an increasing proportion of currently produced wealth. This served then as capital accumulations. But by taking purchasing power out of the hands of mass consumers, the savers denied themselves the kind of effective demand for their products which would justify reinvestment of the capital accumulation in new plants. In consequence as in a poker game where the chips were concentrated in fewer and fewer hands, the other fellows could stay in the game only by borrowing. When the credit ran out, the game stopped"

With the capital accumulation of neoclassical economics wealth concentrates at the top.

A few people have all the money and everyone else gets by on debt.

Keynes added some redistribution to stop all the wealth concentrating at the top, and developed nations formed a strong healthy middle class.

The neoliberals removed the redistribution.

With the capital accumulation of neoclassical economics wealth concentrates at the top.

A few people have all the money and everyone else gets by on debt.

It wasn't even hard.

Let it Go 10 hours ago

Things are really messed up. This gives credence to the idea we might soon be witness to the first global inflationary depression. As investors shift into assets that do well during times of inflation, it is possible they may set in motion a self-feeding loop or cycle. More about this in the following article.

https://The First "Global Inflationary Depression" Is Very Possible.html

[Feb 21, 2021] It doesn't matter if we die of freezer burn sleeping on cardboard after we've been laid-off, evicted, and starved.

Feb 21, 2021 | www.unz.com

obwandiyag , says: February 12, 2021 at 5:10 am GMT • 8.8 days ago

Don't you know that whining about race, from the racist or the anti-racist side, doesn't matter, is more important than billionaires fucking us over. It's more important than anything. It doesn't matter if we die of freezer burn sleeping on cardboard after we've been laid-off, evicted, and starved. It doesn't matter if we die in a nuclear war that the billionaires started because they think it would be a good idea.

Nope. All that matters is whining about race. That's the most important thing. All else is trivial.

Ray Caruso , says: February 12, 2021 at 5:39 am GMT • 8.8 days ago

Didn't American people suffer from the disease? Yes, the US government is "grotesquely and manifestly incompetent" and they were likely to expect "a massive coronavirus outbreak in China would never spread back to America".

The crucial factor here is that the US is not a nation per the most basic definition of the word, "a group of people born of a common ancestry". Consequently, as illustrated by job-killing "trade deals" and in countless other ways, there are plenty of "Americans" who don't care a whit about the fate of Americans. That makes it entirely plausible that the Deep State and/or one or more billionaires would release a virus in China in the full expectation that it would hit the US and that once here it would disrupt, impoverish, and kill millions of Americans. This was a win-win for them. The Deep State and the billionaires don't like China, which is a non-liberal country and curtails their power by restricting the use of US tech products. So if somehow the virus were contained in China it would be okay with them, as it just would be a smaller win. However, what they really wanted was for the virus circle back to the US. They knew that once here the disruption it would cause would further enrich and empower them while giving them a pretext to dump it all on Donald Trump, whom they would accuse of being incompetent and uncaring.

FHTEX , says: February 12, 2021 at 12:06 pm GMT • 8.5 days ago

While full of good insights, the problem with this article as far as COVID is concerned is that it misleads on the main point. COVID is not biowarfare, it is not a pandemic, it's just the flu. The US recorded the same death rate in 2020 as in previous years and, as Dr. Colleen Huber has documented, medical oxygen and supply sales were no different from previous years.

All those COVID-19 deaths were simply deaths of a different name. Of course, we knew from last March's Diamond Princess cruise–still by far the best controlled COVID "experiment"–that the case-fatality rate of COVID-19 for the general public is in the flu range.

But, it never was about COVID-19, which is just a glorified coronavirus of the type seen even before the dawn of humans. Long before the virus even hit the streets, the media and governments and medical establishments had secretly planned to to create a "panic-demic" to scare people into a whole lot of strange and dangerous behaviors–like giving up their liberties and economic futures. COVID-19 is just a medical nothing-burger that convinced a lot of otherwise sane people to scare themselves into oblivion. Or did it? If the post-election analyses are correct, Trump won in a major landslide and even those who voted against him were already suffering from Trump derangement syndrome. So, maybe the people weren't fooled by COVID so much as electorally raped by the vast elite cabal.

Digital Samizdat , says: February 12, 2021 at 12:06 pm GMT • 8.5 days ago

Whatever we say is a fact-based result of diligent research; whatever you say is a conspiracy theory – both the US and China representatives subscribe to this mantra.

Maye both Washington and Beijing are guilty -- of a perpetrating a hoax.

Putin surprised me. He flatly refused the offer of Schwab and his ilk. He condemned the manner of recent pre-Covid growth, for all the growth went into a few deep pockets. Moreover, he noted that digital tycoons are dangerous for the world.

Emslander , says: February 12, 2021 at 12:12 pm GMT • 8.5 days ago

The next strong man we elect must be an actual STRONG man. I salute Trump for his genius in identifying the real majority in this country and for forcing the techno-oligarchs into overdoing their election steal. Now we need someone who is willing to establish real authority on behalf of the un-queer.

[Feb 10, 2021] Are educational disparities a main driver of economic inequality?

Notable quotes:
"... The lower 95 percenters would be better off under the policies of Roosevelt, Truman, Eisenhower and Kennedy. ..."
Feb 10, 2021 | economistsview.typepad.com

Are "educational disparities a main driver of economic inequality"?:

Rethinking the Rise of Inequality, by Eduardo Porter, NY Times : In a poll conducted last month by the College Board and National Journal : ... "It is absolutely clear that educational wage differentials have not driven wage inequality over the last 15 years," said Lawrence Mishel, who heads the Economic Policy Institute, a liberal-leaning center for economic policy analysis. "Wage inequality has grown a lot over the last 15 years and the educational wage premium has changed little."
The standard analysis of the interplay between technology and education, developed by economists like Lawrence Katz and Claudia Goldin..., and David Autor..., suggests that improvements in technology -- coupled with a college graduation rate that slowed sharply in the 1980s -- have been principal drivers of the nation's widening income gap, leaving workers with less education behind.
But critics like Mr. Mishel point out that this theory has important blind spots. For instance, why have wages for college graduates stagnated over the last decade, even as innovation continues at a breathtaking pace? ...
Most notably, the skills-and-tech story leaves aside one of the most perplexing and important dynamics of the last 30 years: the rise of the 1 percent, a tiny sliver of the population that last year took in almost a dollar out of every $4 generated by the American economy. ...
Mr. Mishel's preferred explanation of inequality's rise is institutional: a shrinking minimum wage cut into the earnings of the nation's least-skilled workers while falling trade barriers, deregulation and the decline of labor unions eroded the income of the middle class. The rise of the top 1 percent, he believes, is mostly about executive pay and the growing footprint of finance. ...

My view is that both the technology and institutional forces are at work, and the question is not which of the two explains growing inequality -- they are not mutually exclusive -- but rather how much each contributed to the growing disparity.

Posted by Mark Thoma on Wednesday, November 13, 2013 at 08:43 AM in Economics , Income Distribution | Permalink Comments (57)


DrDick -> Second Best... , November 13, 2013 at 12:48 PM

Actually, the problem was created by Reagan's union busting and slashing taxes on the wealthy.

ilsm -> DrDick... , November 13, 2013 at 03:38 PM

And spending the SS surplus on star wars, hiding deficits from too much of GDP going to the pentagon trough.

If the SS surplus were "savings' they were "invested" in war welfare.

ilsm -> Second Best... , November 13, 2013 at 03:39 PM

Note FDR died 3 months after his 4th inaugural. We will never know how he would have managed the peace.

Michael -> Second Best... , November 13, 2013 at 06:16 PM

Actually, That started with the passage of the Great Society program of 1965, under President Johnson. With Great Society, welfare became official, hip, and institutionalize, with the worst affects being the break-up of black and inner city families, and a doubling to tripling of the out-of-wedlock birthrate. The lower 95 percenters would be better off under the policies of Roosevelt, Truman, Eisenhower and Kennedy.

reason -> Michael... , November 14, 2013 at 01:31 AM

Read the book "The Truly Disadvantaged" about how the break up of inner city families was not to do with welfare but with the lack of jobs for working class men.

The right lives on myths, unsupported by data.

reason -> reason ... , November 14, 2013 at 05:14 AM

That doesn't mean by the way that I am against better micro-economic design of the social security system. A citizen's income (c.f. Friedman's negative income tax) is my preferred welfare system design.

Michael -> reason ... , November 14, 2013 at 08:36 PM

Thomas Sowell has stated that the black family made more progress during the 20 years before Great Society, as opposed to the 20 years after Great Society. Great Society was the first opportunity for mommas to afford to have children, without the benefit of a husband and father to the children, on the taxpayers' dime. Where a birth of a human baby should be a blessed event, it's be cheapened to included the Dept. of Social Services. In my state, in the bigger cities, the out-of-wedlock birthrate pre Great Society was 25%, then by 1975 to current times, the out-of-wedlock birthrate hovers around 75- 80 percent. Black on black crime went up, number of black victims went up, and drug use increased. I don't disagree with the point you are trying to make, but it got much worse at the time of the introduction of Great Society.

Matt Young , November 13, 2013 at 09:37 AM

When we say yields equalize across assets prices, this is natural over the whole economy, including government, given sufficient time to equalize. If rates are low, and price to earnings high, then you can bet your booty that government yields are low also.

And this will be true of any complete, bounded economic model, it is really basic to the concept of a model. So ask youself who or what has driven yields lower over the 40 year period and you can win a banana.

Michael , November 13, 2013 at 09:53 AM

Second Best has it completely backwards! The post-New Deal period saw the strongest economy and most prosperous middle class in American history!

The New Deal came about because the real takers (the wealthy) were taking too much of the pie. Same thing is happening today! But unfortunately we don't have an FDR around to stick up for working men and women. We have the pro-corporate party (Dems) and the ultra-pro-corporate party (GOP).

Darryl FKA Ron -> Michael... , November 13, 2013 at 10:56 AM

Second Best is just pretending to be a reactionary for amusement. Unfortunately some bloggers roll in here occasionally that make roughly the same comments, but are serious. I keep telling him to use emoticons :<)

Michael -> Darryl FKA Ron... , November 13, 2013 at 12:15 PM

I should have known! But so many actually think that way (looking at you, Romney) it's not always easy to spot irony these days.

Watermelonpunch -> Michael... , November 13, 2013 at 01:55 PM

"it's not always easy to spot irony these days"

Very true.
Poe's Law is an epidemic.

LangfordPO -> Watermelonpunch ... , November 13, 2013 at 03:29 PM

So true! The 1st time I saw Anne Coulter on TV I thought she was a comedienne poking fun at the right!

Michael -> Michael... , November 13, 2013 at 06:22 PM

Elizabeth Warren for president. Bill and Hillary are part of the Wall Street crowd.

Michael , November 13, 2013 at 09:59 AM

I wouldn't put any of the blame for rising inequality on technology. We've been replacing workers with machinery for over 200 years!

I think the two principle reasons are low tax rates and low union membership.

Contrary to popular belief, there is very little correlation between tax rates and growth. But there is a very high correlation between low tax rates and increased income inequality.

http://democrats.waysandmeans.house.gov/sites/democrats.waysandmeans.house.gov/files/Updated%20CRS%20Report%2012%3A13%3A12.pdf

DrDick -> Michael... , November 13, 2013 at 12:46 PM

Pretty much grand theft by capital. Wage theft on an economy wide scale.

Perspective -> Michael... , November 13, 2013 at 02:40 PM

Anecdotal but, when you look at typical office-type work, it's hard to not conclude that technology (computers/software) has killed a ton of middle-income office jobs.

e.g. The typical law firm 10+ years ago might have had 3-4 support staff (secretaries, paralegals, filing clerks) for every attorney. Today, it's more typical to have 2-3 attorneys for every support staff employee. Technology allows this.

cm -> Perspective... , November 14, 2013 at 08:51 AM

I easily believe this for the secretaries and clerical staff, but what happened to the paralegals? Similar trends can/could be observed in other professional fields, but there too, while the clerical and admin staff was trimmed (and to an extent management hierarchies but lately it looks like they have come back), subject matter (of the variety that cannot be automated) work has not been cut a lot. OTOH IT/internet allowed a lot of "commodity" tasks to be outsourced and offshored.

Is it possible that the (newer generation?) attorneys had to take on paralegal tasks as part of their job? That would be in line with other fields where in reality a lot of the "low level" and clerical work that has been ostensibly automated was pushed onto the professional staff. For example, in many places you are supposed to arrange your own business travel (hotel, flights), order office materials, do print/copy work etc. that used to be done by now "automated" clerical staff up to 10-15 years ago. Also when it comes to subject matter work, a lot of work formerly done by techs and other support staff (who were often hourly) has been transferred to the professionals (who are generally salaried and "exempt" from overtime pay), while it is generally swept under the rug in performance evaluations which are about subject matter achievements (research pubs, delivered product features etc.). On the flip side there is now probably more nominally professional staff, some of whom (esp. juniors) are loaded with more tech/support content - but then a lot of them are hired offshore too.

Peter K. , November 13, 2013 at 10:01 AM

"Both sides agree that the overall weakness of the job market since the turn of the millennium is a prime culprit. As Professor Katz noted: "The only moments we've had of broadly shared prosperity have been in tight labor markets.""

This is a problem of demand management policy. Demand can be managed via fiscal, monetary and/or trade/currency policies.

It's also a problem of politics as Krugman says in that the powerful center-right has ignored the recent economic evidence, as have the center-right's academic/media message machine. The center-right has cried wolf over inflation and government deficits all in the name of preventing policies that would help the economy and tighten labor markets.

cawley -> Peter K. ... , November 13, 2013 at 10:27 AM

Nailed it. Can I add labor policy on the supply management side?

Peter K. -> cawley... , November 13, 2013 at 12:18 PM

Yes labor policy is very important as well. I would support pro-union policies - which help politically also - and work-sharing programs during downturns which Germany has and which Dean Baker recommends.

Dan Kervick -> Peter K. ... , November 13, 2013 at 11:35 AM

It's also a problem of a long term decline in federal government consumption and gross investment, and the willingness of macroeconomists to re-define "full employment" as a situation in which lots and lots of people are in fact unemployed. I don't think private enterprise alone will ever be capable of generating full employment and tight labor markets, demand stimulus or no demand stimulus.

Beezer , November 13, 2013 at 10:04 AM

When there is insufficient demand yields drop as capacity is idled. Under conditions of weak demand there is also a drop in investment as new entrepreneurs and established businesses know the deck is stacked against them.

The low yields are a natural symptom of the deficient demand. If you're looking for who to blame, there are several likely suspects.

One is a government indifferent to unemployment that caters almost exclusively to the super rich and the multi national, stateless corporations. The second is a government indifferent to unemployment that caters almost exclusively to the super rich and the multi national, stateless corporations. The third is see one and two.

This is the beginnings of fascism, of course. All we need now is a strong authority figure and a good war.


Peter K. , November 13, 2013 at 10:05 AM

http://www.nytimes.com/2013/11/13/us/politics/republicans-target-health-law-before-it-takes-hold.html?ref=us&pagewanted=all

Fighting to Stop an Entitlement Before It Takes Hold, and Expands by John Harwood

November 12, 2013

"WASHINGTON -- Underlying fierce Republican efforts to stop President Obama's health care law and the White House drive to save it is a simple historical reality: Once major entitlement programs get underway, they quickly become embedded in American life. And then they grow.

That makes the battle over the Affordable Care Act more consequential than most Washington political fights. "If it's in place for six months, it will be impossible to repeal it or change it in ways that significantly reduce the benefits," said Robert D. Reischauer, a Democrat who used to lead the Congressional Budget Office.

Douglas Holtz-Eakin, another former C.B.O. director, reflects the concern of fellow Republicans in framing the stakes more dramatically. Either the law's health insurance exchanges "can't cut it," he explained, or "it's Katie, bar the door -- we have an explosively growing new program."

Ever since President Franklin D. Roosevelt's New Deal during the Great Depression, the dominant pattern for major entitlements -- the term for government assistance programs open to all who qualify and not subject to annual budget constraints -- has been durability and expansion. That is the record Senator Ted Cruz of Texas refers to in warning Republicans not to allow Americans to become "hooked on the subsidies" -- an argument Mr. Obama sarcastically recast as, "We've got to stop it before people like it too much."

Congress enacted Social Security in 1935 to provide benefits to retired workers. In 1939, benefits were extended to their dependents and survivors. Later the program grew to provide disability coverage, cover self-employed farmers and raise benefit levels.

President Lyndon B. Johnson's Great Society created Medicare and Medicaid in the 1960s to provide health coverage for the elderly and the poor. They followed the same pattern.

In 1972, Congress extended Medicare eligibility to those under 65 on disability and with end-stage renal disease. In 2003, Congress passed President George W. Bush's plan to offer coverage under Medicare for prescription drugs.

Lawmakers initially linked Medicaid coverage to those receiving welfare benefits, but over time expanded eligibility to other "poverty-related groups" such as pregnant women. In 1997, President Bill Clinton signed into law the Children's Health Insurance Program, which now covers eight million children whose families' incomes are too high to qualify for Medicaid."
...

Matt Young -> Peter K. ... , November 13, 2013 at 11:14 AM

The old canard, right out of Doonesbury cartoon sociology.

The real issue is discretionary spending. It is gone mainly because of entitlement crowding. The thirty small hoover states find higher multipliers in discretionary spending. It is really a critical political issue, and the thirty hoovers will take the ship down unless they get their discretionaries.

New York, Florida, California and Texas are united against discretionary spending. Both parties are having internal battles on the issue.

Peter K. -> Matt Young... , November 13, 2013 at 12:22 PM

"The real issue is discretionary spending. It is gone mainly because of entitlement crowding."

lolwut?

DrDick -> Matt Young... , November 13, 2013 at 12:48 PM

I want some of what you are smoking!

Watermelonpunch -> Matt Young... , November 13, 2013 at 01:59 PM

Please do expound on this idea of "entitlement crowding".

Because there's entirely not enough Poe's Law on the internet already.

Matt Young -> Watermelonpunch ... , November 13, 2013 at 02:42 PM

Listen to yellens statement on discretionary spending, she likes it. But listen to the House, they sequester it. Whyndid you and i just agree, via our representatives, to cut discretionary spending? Any clue? What did every red blooded american say about the entitlements? No, no.!!. What did we do? Cut discretionary spending to save entitlements. If anyone is capable of any news searching on the topic, i suspect you will find much talk about discretionary vs entitlement spending. We name that, give it an actual semantic. Crowding.

Matt Young -> Matt Young... , November 13, 2013 at 02:52 PM

Right. There wasno sarcasm, i must suddenly be in nutsville. A very good chunk of articles, right here, required reading was about cuts to discretionary spending and saving entitlements. Someone is not doing their homework.

What the complaint was about, in the two posts above, was that the discretionary vs entitlement comment was not framed in some kind of simple minded 'evil tea party'. As if no actual thought may occur on the blog unless it passes some orwellian, straight jacket, nonesense. Seriously, crowding out occurs in the budget all the friggin time and mostly has little to with some bogus script of plastic political analysis.

ilsm -> Matt Young... , November 13, 2013 at 03:49 PM

Entitlement spending does not fund humbug factories. Or PAC's to make sure the pentagon has a 'strategic objective' to keep the defense corporations (aka troughers) healthy.

Entitlements have had little 'crowding' effect on discretionary spending.

Roughly, discretionary to entitlements used to be about 35:65 in 1999, today it is not that different, while the war half of discretionary (19% of outlays in 2012) is nearly 60% too large.

When you take away war and corporate welfare entitlements should be 6 times discretionary spending.

What matters is discretionary spending enriches a few a lot, while entitlements take care of many a little.

Matt Young -> ilsm... , November 13, 2013 at 07:18 PM

Well you have an opinion about entitlements and discretionary spending. You like the former, not the later. We have a name for people like you, Crowders, you crowd out one form of spending vs another form.

So quit bitching and play the game. We are conducting a mass experiment, lead by researcher janet yellen. She is going to test your theory by attempting more discretionary spending. If she screws it up, you win a banana.

Samuel , November 13, 2013 at 10:15 AM

Repeat after me...Robber barons now own us and the economy.

Matt Young , November 13, 2013 at 10:35 AM

Ok, lets review the roosevelt thing.
In 1928, investors believed we were head for a new productivity frontier based on the efficiency of the mass market. They predicted 4% non-inflationary growth for the horizon. What we got in 1948 was exactly that, high growth, low inflation, rising productivity. Between 1928 and 1948, we got social security, progressives taxes, off the gold standard, two major down turns, twenty million dead from WW2, and the cold war.

Thats a twenty year wait, mostly the result of bad and good government depending on how one sorts the events. Ok, you all sort it all out, I am moving on.

anne , November 13, 2013 at 10:44 AM

http://www.census.gov/hhes/www/income/data/historical/household/index.html

September 17, 2013

Households with Householder 25 Years Old and Over by Median Income

Median real incomes for those 25 years old and over from 1992 to 2012 increased from $50,667 to $52,119. *


(Educational attainment of householder)

Median real incomes for those with professional degrees from 1992 to 2012 declined from $135,836 to $129,588.

Median real incomes for those with master's degrees from 1992 to 2012 declined from $92,593 to $92,362.

Median real incomes for those with bachelor's degrees or more from 1992 to 2012 declined from $86,458 to $86,419.

Median real incomes for those with bachelor's degrees alone from 1992 to 2012 increased from $79,179 to $80,549.

* Income in 2012 dollars

Darryl FKA Ron , November 13, 2013 at 11:35 AM

The rapid transformation of business processes via the capital formation advantages of robust, diverse, and highly liquid financial markets made it all possible.

Translation: If tax incentives are set to prefer trading equities (relatively low capital gains tax rate) over holding equities (relatively low dividends tax rate) then capital will flow to investments with the fast rather than longest duration returns. Fastest returns for capital will come from mergers and downsizing (i.e, layoffs), outsourcing (narrow specialization), offshoring of production (labor wage arbitrage), and technology asset capital expenditure (automation) will be the preferred uses of capital. With the short term emphasis then training, retention, maintaining internal competency succession, and operational process improvements will undesirable expenses. The preferences quickly become self reinforcing as workforce quality devolves and capital rewards itself more and more.

Steve , November 13, 2013 at 11:53 AM

Immigration is another of the oligarchs tools for suppressing labor.

"do jobs citizens won't do(at the wage on offer)..."can't find skills (at the wage on offer).

Why invest in social capital here when it can always be imported more cheaply?

It is not the immigrants fault but the oligarchs who exploit them.

"it is a real mystery why real wages for unskilled worker keep going down"

bakho , November 13, 2013 at 12:47 PM

These studies need to include interaction terms.

Economic is a quantitative science and economists should understand the statistics and test for interactions. Sometimes, the interactive effects can be greater than major effects.

Justin Cidertrades , November 13, 2013 at 02:03 PM


"
wages for college graduates stagnated over the last decade, even as innovation continues at
"

Tell me something! Does all of innovation come from humans? From Hunans? From automation? From computer hardware? Software? Software with a child process? A child process coded by the parent process? Do you see what is happening?

We are now approaching the moment of singularity. A moment in history, or an epoch of history? Tell me something else!

Do all boomer-s leave the work force simultaneously? Or during a poorly defined epoch? The singularity has already begun but will evolve slowly as the present SE, singularity epoch unfolds. Computer jockey-s first used the word processing feature of computer to code their human imagination. Later assemblers re-coded human source code, checked source for semantics and many other features. Supercomputers now work at unbelievable gigaflops. But if human brain is merely a biological gigaflopper, eventually all its functions will be replaced by semiconductor brains. But so what?

RM, Reverse Migration! As mechanized innovation replaces Americans, Yankee-s will need to migrate to developing countries where the singularity process will be slower and with a phase shift, behind the American Curve.

2 B continued
!

Matt Young -> Justin Cidertrades... , November 13, 2013 at 02:35 PM

But,but...if the computers are smarter they will migrate to developing countries first, and get all the good jobs.

Massimo Mediolanum -> Matt Young... , November 16, 2013 at 08:55 AM


Grazie! Grazie per l'avvertimento! Noi abbiamo espulso i computer vinti. Grazie di nuovo! Distinti saluti, Massimo!

http://www.reuters.com/article/2013/11/13/us-apple-italy-tax-idUSBRE9AC0RW20131113

anne , November 13, 2013 at 04:03 PM

http://www.census.gov/hhes/www/income/data/historical/household/index.html

September 17, 2013

Median real incomes for those 25 years old and over from 1992 to 2012 increased from $50,667 to $52,119. *

Median real incomes for those with bachelor's degrees or more from 1992 to 2012 declined from $86,458 to $86,419.

* Income in 2012 dollars

anne , November 13, 2013 at 04:03 PM

http://www.census.gov/hhes/www/income/data/historical/household/index.html

September 17, 2013

Median real incomes for those 25 years old and over from 2000 to 2012 declined from $57,707 to $52,119. *

Median real incomes for those with bachelor's degrees or more from 2000 to 2012 declined from $95,789 to $86,419.

* Income in 2012 dollars

anne , November 13, 2013 at 04:05 PM

http://www.bls.gov/webapps/legacy/cpsatab4.htm

January 4, 2013

Employment-Population Ratio, Bachelor's Degree and Higher, 2000-2013

2000 ( 78.1) *
2001 ( 77.1) Bush
2002 ( 76.3)
2003 ( 75.8)
2004 ( 75.8)

2005 ( 76.1)
2006 ( 76.3)
2007 ( 76.3)
2008 ( 75.8)
2009 ( 73.9) Obama

2010 ( 73.1)
2011 ( 73.1)
2012 ( 72.9)

October

2013 ( 72.2)

* Employment age 25 and over

anne , November 13, 2013 at 04:16 PM

"The standard analysis of the interplay between technology and education, developed by economists like Lawrence Katz and Claudia Goldin..., and David Autor..., suggests that improvements in technology -- coupled with a college graduation rate that slowed sharply in the 1980s -- have been principal drivers of the nation's widening income gap, leaving workers with less education behind...."

-- Eduardo Porter

I do not understand this assertion, since what is remarkable about the United States is that the portion of men and women 25 to 34 and 55 to 64 with college degrees is just about the same.

July, 2013

College or university degree attainment by age group, 2011

( Percent of population 25-34 and 55-64)

OECD average ( 39) ( 24)

United States ( 43) ( 41)

anne , November 13, 2013 at 04:17 PM

"The standard analysis of the interplay between technology and education, developed by economists like Lawrence Katz and Claudia Goldin..., and David Autor..., suggests that improvements in technology -- coupled with a college graduation rate that slowed sharply in the 1980s -- have been principal drivers of the nation's widening income gap, leaving workers with less education behind...."

-- Eduardo Porter

I do not understand this assertion, since what is remarkable about the United States is that the portion of men and women 25 to 34 and 55 to 64 with college degrees is just about the same.

anne , November 13, 2013 at 04:17 PM

http://www.oecd.org/edu/educationataglance2013-indicatorsandannexes.htm

July, 2013

Organisation for Economic Co-operation and Development Education Data

College or university degree attainment by age group, 2011

( Percent of population 25-34 and 55-64)

OECD average ( 39) ( 24)

United States ( 43) ( 41)

anne , November 13, 2013 at 04:23 PM

http://g-mond.parisschoolofeconomics.eu/topincomes/

September, 2013

Top .1 Percent Income Share in the United States, 1980-2012

(Including capital gains)

1980 ( 3.41)
1981 ( 3.57) Reagan
1982 ( 4.18)
1983 ( 4.62)
1984 ( 4.98)

1985 ( 5.32)
1986 ( 7.40)
1987 ( 4.90)
1988 ( 6.80)
1989 ( 6.00) Bush

1990 ( 5.82)
1991 ( 5.12)
1992 ( 6.03)
1993 ( 5.73) Clinton
1994 ( 5.70)

1995 ( 6.21)
1996 ( 7.24)
1997 ( 8.18)
1998 ( 9.00)
1999 ( 9.62)

2000 ( 10.88)
2001 ( 8.37) Bush
2002 ( 7.34)
2003 ( 7.87)
2004 ( 9.46)

2005 ( 10.98)
2006 ( 11.59)
2007 ( 12.28) (High)
2008 ( 10.40)
2009 ( 8.30) Obama

2010 ( 9.66)
2011 ( 9.27)
2012 ( 11.33)

-- Thomas Piketty and Emmanuel Saez

anne , November 13, 2013 at 04:23 PM

September, 2013

Top .1 Percent Income Share in the United States, 1980-2012

(Including capital gains)

1980 ( 3.41)
1981 ( 3.57) Reagan
1982 ( 4.18)
1983 ( 4.62)
1984 ( 4.98)

1985 ( 5.32)
1986 ( 7.40)
1987 ( 4.90)
1988 ( 6.80)
1989 ( 6.00) Bush

1990 ( 5.82)
1991 ( 5.12)
1992 ( 6.03)
1993 ( 5.73) Clinton
1994 ( 5.70)

1995 ( 6.21)
1996 ( 7.24)
1997 ( 8.18)
1998 ( 9.00)
1999 ( 9.62)

2000 ( 10.88)
2001 ( 8.37) Bush
2002 ( 7.34)
2003 ( 7.87)
2004 ( 9.46)

2005 ( 10.98)
2006 ( 11.59)
2007 ( 12.28) (High)
2008 ( 10.40)
2009 ( 8.30) Obama

2010 ( 9.66)
2011 ( 9.27)
2012 ( 11.33)

-- Thomas Piketty and Emmanuel Saez

anne -> anne... , November 13, 2013 at 04:27 PM

What is importance to notice about increasing income concentration is how much of an increase there has been above the top 1% of families. we find the share of income for the top .1% of families going from 3.41% to 11.33% between 1980 and 2012 for an astonishing gain.

anne -> anne... , November 13, 2013 at 04:29 PM

We find the share of income for the top .01% of families going from 1.28% to 5.47% between 1980 and 2012 for an even more astonishing gain.

anne , November 13, 2013 at 04:24 PM

September, 2013

Top 1 Percent Income Share in the United States, 1980-2012

(Including capital gains)

1980 ( 10.02)
1981 ( 10.02) Reagan
1982 ( 10.80)
1983 ( 11.56)
1984 ( 11.99)

1985 ( 12.67)
1986 ( 15.92)
1987 ( 12.66)
1988 ( 15.49)
1989 ( 14.49) Bush

1990 ( 14.33)
1991 ( 13.36)
1992 ( 14.67)
1993 ( 14.24) Clinton
1994 ( 14.23)

1995 ( 15.23)
1996 ( 16.69)
1997 ( 18.02)
1998 ( 19.09)
1999 ( 20.04)

2000 ( 21.52)
2001 ( 18.22) Bush
2002 ( 16.86)
2003 ( 17.53)
2004 ( 19.75)

2005 ( 21.92)
2006 ( 22.82)
2007 ( 23.50)
2008 ( 20.95)
2009 ( 18.12) Obama

2010 ( 19.86)
2011 ( 19.65)
2012 ( 22.46)

-- Thomas Piketty and Emmanuel Saez

mrrunangun , November 13, 2013 at 05:51 PM

Corruption of government at all levels produced a class of plutocratic rent holders in finance and other industries able to buy rents. Citi and Solyndra being outstanding examples on the D side and ADM and the oil companies on the R side.

Abysmal social and economic conditions in African American urban ghettos. These conditions contribute much to the poor conditions in the schools that serve that population. The kids who attend school in these neighborhoods are really up against it. Social arrangements that sort the educated upper middle class into "their"towns by residential pricing and development patterns tend to limit highly advantageous educational opportunities to their children. In the big cities the upper middle class either uses influence to obtain places for their children in desirable public schools or use private schools.

Pressure on wages and employment opportunities for people with low educational attainment due to the development of more efficient production technologies and low wage competition in the global trading system.

Forgive my skepticism that a few billion more federal dollars of stimulus will correct these problems.

anne -> mrrunangun... , November 13, 2013 at 06:49 PM

http://www.census.gov/prod/2013pubs/p60-245.pdf

September 17, 2013

Household Median Income by Selected Ethnicity: 2012

Combined ( 51,017) *

Race and Hispanic Origin of Householder

Asian ( 68,636)

White, not Hispanic ( 57,009)

White ( 53,706)

Hispanic, any ethnicity ( 39,005)

Black ( 33,321)

* Income in 2012 dollars

Matt Young , November 13, 2013 at 07:06 PM

http://capoliticalnews.com/2013/11/12/jerry-brown-claims-californias-attractive-poverty-is-why-state-in-depression/

Jerry Brown and California's "Attractive" Poverty

Gov. Jerry Brown, whose pronouncements of California's economic recovery have been criticized by Republicans who point out the state's high poverty rate, said in a radio interview Wednesday that poverty and the large number of people looking for work are "really the flip side of California's incredible attractiveness and prosperity."

The Democratic governor's remarks aired the same day the U.S. Census Bureau reported that 23.8 percent of Californians live in poverty under an alternative calculation that includes the cost of living.

Asked on National Public Radio's "All Things Considered" about two negative indicators -- the state's nation-high poverty rate and the large number of Californians who are unemployed or marginally employed and looking for work -- Brown said, "Well, that's true, because California is a magnet.

"People come here from all over in the world, close by from Mexico and Central America and farther out from Asia and the Middle East. So, California beckons, and people come. And then, of course, a lot of people who arrive are not that skilled, and they take lower paying jobs. And that reflects itself in the economic distribution."

----------------


Hmmm. So my claim that the bankruptcy of America is caused by a negative growth black hole in Sacramento was just admitted as true by the Guv of California. Where is my banana?

Gary Rondeau , November 13, 2013 at 08:48 PM

Growing inequality is built into capitalism. There doesn't have to be evil intent, just complacency to do anything about it.


http://squashpractice.wordpress.com/2012/01/01/wealth-and-inequality-pareto-gini-and-contingency/

[Feb 10, 2021] Neoliberals are Enemies of the Poor by Paul Krugman

Jan 13, 2014 | economistsview.typepad.com

Will Republicans ever care about the poor?:

Enemies of the Poor, by Paul Krugman, Commentary, NY Times : Suddenly it's O.K., even mandatory, for politicians with national ambitions to talk about helping the poor. This is easy for Democrats, who can go back to being the party of F.D.R. and L.B.J. It's much more difficult for Republicans, who are having a hard time shaking their reputation for reverse Robin-Hoodism, for being the party that takes from the poor and gives to the rich.
And the reason that reputation is so hard to shake is that it's justified. It's not much of an exaggeration to say that right now Republicans are doing all they can to hurt the poor, and they would have inflicted vast additional harm if they had won the 2012 election. Moreover, G.O.P. harshness toward the less fortunate isn't just a matter of spite...; it's deeply rooted in the party's ideology...
Let's start with the recent Republican track record.
The most important current policy development in America is the rollout of the Affordable Care Act, a k a Obamacare. Most Republican-controlled states are, however, refusing to implement a key part of the act, the expansion of Medicaid, thereby denying health coverage to almost five million low-income Americans. And the amazing thing is that ... the aid through would cost almost nothing; nearly all the costs ... would be paid by Washington.
Meanwhile, those Republican-controlled states are slashing unemployment benefits, education financing and more. As I said, it's not much of an exaggeration to say that the G.O.P. is hurting the poor as much as it can.
What would Republicans have done if they had won the White House in 2012? Much more of the same. Bear in mind that every budget the G.O.P. has offered since it took over the House in 2010 involves savage cuts in Medicaid, food stamps and other antipoverty programs. ...
The point is that a party committed to small government and low taxes on the rich is, more or less necessarily, a party committed to hurting, not helping, the poor. ...
Republicans weren't always like this. In fact, all of our major antipoverty programs -- Medicaid, food stamps, the earned-income tax credit -- used to have bipartisan support. And maybe someday moderation will return to the G.O.P.
For now, however, Republicans are in a deep sense enemies of America's poor. And that will remain true no matter how hard the likes of Paul Ryan and Marco Rubio try to convince us otherwise.

Posted by Mark Thoma on Monday, January 13, 2014 at 12:33 AM in Economics , Politics , Social Insurance | Permalink Comments (69)


elvis , January 12, 2014 at 10:26 PM

GOP = Get Out, Poor!

pgl , January 13, 2014 at 01:42 AM

"We're Broke" is the mantra of the GOP. Yes, the nation with the highest GDP in absolute terms and a very high per capita level of income is "broke". You see this nonsense from Republican leaders at the beginning of a film called "We're Not Broke" which is devoted to the GOP push to have even less taxes on their base - the ultrarich.

ilsm -> pgl... , January 13, 2014 at 01:59 PM

US can afford to spend 4 times the part of GDP that Japan and German spend on warmaking. And a similar amount on crony capital.

US can afford new ships that will not be equipped, star wars missiles that can hit nothing, and a $1500B fighter program which is failing its tests many of which cannot be performed because the thing is unreliable.

Afford to strike Iran...............

bakho , January 13, 2014 at 04:18 AM

Republicans are out of touch. The MinWage is so far below Living Wage that the taxpayers have to subsidize MinWage workers so they can have enough to eat. This is wrong. The system and the employers are exploiting their labor.

Medicaid and Obamacare are a subsidy to the poor workers who can't afford the costs of health care and don't have it provided by employers. A workforce that is not healthy is bad for business: more missed workdays, lower productivity, higher turnover, etc. The single minded focus on cutting social spending is completely wrong.

The question that is not asked: "What services do people need to be functional in our modern economy? What mix of employer benefits, government benefits and wage contribution are required to deliver the services?" For many people, wages are too low to pay for the minimum basic goods and services. How do we make up the difference? Or do we have people do without and erode the health and potential economic output? Republicans have a short sighted focus on cutting spending and investment in the short run and are not considering the long run.

Beezer , January 13, 2014 at 05:55 AM

I don't have the source, but I believe our net worth, nationally, is just north of $74 trillion. And we added more than $1.3 trillion to that amount the past 12 months. This is the figure that deals in assets we know about. Given the loopholes in our tax code that allow the super rich to essentially hide much of their income, here and overseas, that net worth figure is certainly below the real number.

So the statement 'we're broke' borders on the ridiculous. Our cash flow statement is less impressive, but certainly far above adequate. Even here, this is a choice. We could easily return to balance (although that's historically been a very bad idea) just by fixing our tax code so it become more progressive. Today's tax code over taxes the middle class in order to fund tax breaks for the super rich.

EMichael -> Beezer... , January 13, 2014 at 06:02 AM

Yep. The progressiveness of the tax code stops in its track at about the Top 2%. Right about the spot where hiding income becomes easy and makes economic sense.

Someday we will figure out how much income never hits tax returns.

Perspective -> EMichael... , January 13, 2014 at 10:05 AM

It is not possible to hide W2 income (income earned from an employer), so I'm guessing you're talking about other sources of income and wealth.

EMichael -> Perspective... , January 14, 2014 at 06:14 AM

Really?

IRAs?
HSAs?
Employer paid health insurance?

My wife and I had over $30,000 of such income last year. Guaranteed the vast majority of the Top 10% had similar amounts.

However, I really was not talking about W2 income, but rather things like Romney's $20 million IRA. Or hedge fund managers keeping earnings offshore to avoid any taxes (even the reduced scam they receive) and living by borrowing against their offshore holdings at ludicrously low interest rates.

Course, it the case of Romney I repeat myself.

DrDick -> Beezer... , January 13, 2014 at 07:33 AM

Actually, most of us are broke. Almost all of those gains have gone to the top 1% (actually the top 0.01% seized much of that).

DeDude , January 13, 2014 at 06:19 AM

How exactly did we go from a war on poverty to a war on the poor.

Darryl FKA Ron -> DeDude... , January 13, 2014 at 10:52 AM

Maybe it was collateral damage since they live in the same neighborhoods? Probably though it was being fought as a limited war and then there was mission creep.

An all out war on poverty would have transformed the economic battlefield in ways that very few actually wanted.

anne , January 13, 2014 at 06:32 AM

http://krugman.blogs.nytimes.com/2014/01/13/youre-all-losers/

January 13, 2014

You're All Losers
By Paul Krugman

The other day someone -- I don't remember who or where -- asked an interesting question: when did it become so common to disparage anyone who hasn't made it big, hasn't gotten rich, as a "loser"? Well, that's actually a question we can answer, using Google Ngrams, which track the frequency with which words or phrases are used in books:

[Graph]

Sure enough, the term "losers" has become much more common since the 1960s. And I think this word usage reflects something real -- a growing contempt for the little people.

This contempt surely isn't limited to Republican politicians. Still, it's striking how unable they are to show any empathy for people who are just doing their best to make a modest living. The most famous example, of course, is Mitt Romney, who didn't just disparage 47 percent of the nation; he urged everyone to borrow money from their parents and start a business. I still think the most revealing example to date was Eric Cantor, who marked Labor Day by tweeting:

"Today, we celebrate those who have taken a risk, worked hard, built a business and earned their own success."

But Marco Rubio's latest speech deserves at least honorable mention, for the airy way he dismissed the idea of raising the minimum wage: "Raising the minimum wage may poll well, but having a job that pays $10 an hour is not the American dream."

In a sense, he's right: if the American dream means getting rich, then $10 an hour isn't living that dream. But most people aren't and won't get rich. Raising the minimum wage would mean higher incomes for around 27 million people; in many cases the gains would amount to thousands of dollars a year, which is really a lot in low-income families. So what are all these people, chopped liver? Well, yes, at least in the eyes of the GOP -- or maybe make that chopped losers.

OK, I know what the answer will be: conservative policies will lead to economic growth, and that will raise all boats, the way it did in the days of Saint Ronald. Except, you know, it didn't. Here's the real wage of nonsupervisory workers:

[Real wage of production and nonsupervisory workers * ]

Even if you give Reagan credit for the 1982-9 business cycle expansion, which you shouldn't, there's no way to claim that his policies led to higher wages for ordinary workers.

So what is the GOP agenda to help people who aren't going to build businesses and get rich? There isn't one -- partly because they really can't reconcile any real agenda with their overall ideology, but also because, deep in their hearts, they consider ordinary people trying hard to get by a bunch of losers.

* http://research.stlouisfed.org/fred2/graph/?g=q8T

Julio -> anne... , January 13, 2014 at 08:41 AM

"Today, we celebrate those who have taken a risk, worked hard, built a business and earned their own success."

Correcting:

"Today, we celebrate those who have taken a risk, worked hard, built a business and earned someone else's success."

ilsm -> Julio ... , January 13, 2014 at 02:04 PM

"Today, we celebrate those who have made a bet, exploited others' hard work, built a monoploy and earned someone else's sweat."

That the franchisee can have his employees fed and cared for by the commonwealth is further plundering.

bakho -> anne... , January 13, 2014 at 08:57 AM

The agenda is to further the special interests of the wealthy. They are not interested in economics for the masses.

anne -> O.D.K.... , January 13, 2014 at 07:27 AM

Entitlement expansion. See Detroit and Scranton. Coming soon to Chicago.

[ The term "entitlement" is used when a writer wishes to hide the fact the what is being talked about is Social Security or Medicare or a pension program that a worker has contributed to for years and years.

As for the supporting of pension funds, all that has to be understood is how terrific stock and bond markets returns have been these last 30 and more years. Any pension fund manager who simply bought a mix of stock and bond market indexes would have done splendidly for workers and there would be no possible problem now. ]

anne -> anne... , January 13, 2014 at 07:32 AM

A portfolio 50-50 mix of American stock and bond market indexes since 1975 through 2013 would have yielded a yearly return over 9.5%.

https://personal.vanguard.com/us/funds/snapshot?FundId=0040&FundIntExt=INT#hist%3A%3Atab=1&tab=1

Vanguard 500 Stock Index Fund

Average annual returns as of 12/31/2013

08/31/1976 ( 11.04)

Vanguard Long-Term Investment-Grade Bond Fund

Average annual returns as of 12/31/2013

07/09/1973 ( 8.46)

david -> anne... , January 13, 2014 at 07:53 AM

The problem has not typically been fund returns. It has been underfunding of the programs by employers, on the assumption that magic market alpha will make up the difference (well, that's the happy spin on it, the truth is most of the funders didn't much care if the difference was made up or not so long as they got theirs.)

The focus on pension fund investing strategies is an important one, but kept distinct from funding levels and political battles it's almost meaningless.

EMichael -> david... , January 13, 2014 at 08:18 AM

Exactly.

Compound interest is a bitch.

Same game played by the auto companies for decades and decades. By the same people.

anne -> david... , January 13, 2014 at 08:46 AM

This needs to be explained, keeping here to employer contributions by government employers.

As to the mention of auto companies and pension contributions, there you have a problem in which employers can estimate a pension fund investment return and contribute according to the estimate so that a higher estimate will mean lower levels of contributions from employers for a time. Nonetheless, ordinary investment returns over long periods of time should have left no pension problem for workers.

Beezer -> anne... , January 13, 2014 at 09:10 AM

Once executives realized the raises they could gain by taking deferred comp. in stock, or even in guaranteed return special accounts (Jack Welch at GE-14% annual), corporations couldn't afford much of anything else. Today CEOs make 290 times the average pay of their employees compensation, so in order to cover those outsized gains and still report good profits, companies need to trim budgets anywhere and everywhere. Stable, defined benefit plans, paid for in addition to wages, got tossed and replaced by contribution plans funded by employees themselves.

For more than 35 years in America it's been a time to strip corporate assets and pick the pockets of employees and shareholders in order to pay executives their gargantuan compensation packages.

Thanks to our rigged tax code, ripping off the middle class has become a full time project of the super rich and their paid help in Congress and academia.

david -> anne... , January 13, 2014 at 10:59 AM

Same thing happened in the public as in the private sector funds. Look at Illinois or New Jersey or Detroit. Economic miracles or budget crises lead to underfunding, rolling the dice on investments, and appetites for silver bullet alternative investments that help explain the massive shift to PE and HF despite their fee structures (and can lead to alternatives managers the profits they took off the funds to help subvert the DB system). The push to alpha helps create instability and predation in the markets, goes the theory. But in any case, underfunding by the public sector leads to blame-shifting onto "those workers making bad investments" and leads to pernicious politics around retirement security.

anne -> david... , January 13, 2014 at 11:52 AM

PE = private equity
HF = hedge fund

http://en.wikipedia.org/wiki/Alpha_(investment)

Alpha is a risk-adjusted measure of the so-called active return on an investment.

"The push to alpha helps create instability and predation in the markets, goes the theory...."

Meaning there is a push by employers or pension fund managers to take more risks for hopefully higher returns.

DeDude -> anne... , January 13, 2014 at 10:52 AM

Unfortunately the employers (including and perhaps worst public employers) used the upturns in the market as opportunities to reduce what they paid into the funds (as a way to fund tax cuts and get re-elected). Then after severe downturns in the market rather than increase the funding for pensions they argue to take away earned pensions from the workers (or leave the mess to be fixed by federal government).

anne -> DeDude... , January 13, 2014 at 11:47 AM

Nice set of explanations, which leads me to think in the case of public workers in unions there should be a yearly accounting by the union of employer pension contributions along with an allowing for quick contract redress should employer contributions fall short for a given length of time.

James -> anne... , January 13, 2014 at 12:37 PM

DeDude is not entirely correct. In the following example, the problem was powerful predators, fraud, and corruption, as there was plenty of money, and plenty of foresight.

http://www.eastbayexpress.com/oakland/parskys-party/Content?oid=1083283

Where was Union oversight in this fiasco? Or better yet, fiscal accountability on the part of the Regents for wrongful termination, theft, breach of fiduciary duty? I don't see much hope, because social memory is short, human nature is flawed, and dynastic wealth in the hands of sociopaths seeks to defend its economic position until the population rises up in revolt. Wash, rinse, repeat.

mrrunangun -> James ... , January 13, 2014 at 07:53 PM

In Illinois, public employee union leaders were probably paid off to keep silent about pension underfunding. A couple of union leaders benefited from special legislation that awarded them a nice pension for one day of substitute teaching. The special pension was in a well funded plan, not the state teachers' plan. The legislation doesn't spell out the quid pro quo, but experienced observers connect dots like these. The legislature takes care of public union officials who take care of them.

DrDick -> O.D.K.... , January 13, 2014 at 07:36 AM

Tax cuts for the wealthy, see the entire country. The problem is not excessive spending, but inadequate revenues. The latter as a consequence of unnecessary and destructive tax cuts for the rich. We already had the lowest effective tax rate on the wealthy in the developed world before that.

bakho -> O.D.K.... , January 13, 2014 at 08:58 AM

Not entitlement
Decision was to raise the obligations to the wealthy above the obligations to the workers.

Darryl FKA Ron , January 13, 2014 at 07:31 AM

"...The most important current policy development in America is the rollout of the Affordable Care Act, a k a Obamacare. Most Republican-controlled states are, however, refusing to implement a key part of the act, the expansion of Medicaid, thereby denying health coverage to almost five million low-income Americans..."

[That is sad on two levels. First it is sad that "The most important current policy development in America is the rollout of the Affordable Care Act" instead of robust policies for creating job and wage growth. Second then of course it is sad "Most Republican-controlled states are.. refusing to implement ... the expansion of Medicaid... denying health coverage to almost five million low-income Americans."

And by sad I mean a sad sorry state of affairs that should have a big effect on the mid-term elections if we get off our duffs and take this to the voting booths.]

EMichael , January 13, 2014 at 07:46 AM

One day someone will point out that the value of a municipal bond or a treasury bond is an "entitlement", just like the value of a pension, SS or Medicare is an "entitlement".


But not today.

Julio -> EMichael... , January 13, 2014 at 08:43 AM

Excellent.

Beezer -> EMichael... , January 13, 2014 at 09:13 AM

The coupon clipping class needs constant feeding. And the super rich coupon clippers need a deep pool of poor people to maintain their comfort. So simple, really.

Perspective -> EMichael... , January 13, 2014 at 10:07 AM

Wow, a post from EMichael I can support...

Matt Young -> EMichael... , January 13, 2014 at 08:52 PM

That has been pointed out many times in the book, This Time is Different where we see defaults on both entitlements. In fact, one of the biggest topics of the post crash era has been when the usa would default in its bond entitlements.

Eric377 -> EMichael... , January 16, 2014 at 10:53 AM

Not too accurate. Bonds and pensions are contracts and sort of can be thought of as entitlements since your benefits can be enforced in court. You are entitled to whatever your counterparty agreed to (so long as you did your part and your counterparty is solvent). SS and Medicare are not contracts. Treasury could have twice the funds needed to pay for SS forever and Congress could decide tomorrow to cut benefits 80%. Same with Medicare. The two programs on your list that people are probably most likely to think of as entitlements are probably the least like entitlements. Your counterparty can change the rules on you tomorrow.

Darryl FKA Ron , January 13, 2014 at 07:53 AM

Will Republicans ever care about the poor?:

[Krugman answers:]

"...The answer, I'm sorry to say, is almost surely no.

First of all, they're deeply committed to the view that efforts to aid the poor are actually perpetuating poverty, by reducing incentives to work..."


"...But our patchwork, uncoordinated system of antipoverty programs does have the effect of penalizing efforts by lower-income households to improve their position: the more they earn, the fewer benefits they can collect. In effect, these households face very high marginal tax rates. A large fraction, in some cases 80 cents or more, of each additional dollar they earn is clawed back by the government..."

"...we could reduce the rate at which benefits phase out..."

[Then Krugman slips away from reality to embrace center aisle politics.}

"...Will this ever change? Well, Republicans weren't always like this. In fact, all of our major antipoverty programs -- Medicaid, food stamps, the earned-income tax credit -- used to have bipartisan support. And maybe someday moderation will return to the G.O.P..."

{Yeah those were the good old days leading up to financialization for M&A anticompetitive consolidation of labor market arbitrage, globalization of wages backed by the abitrage of the exorbitant privilege of US dollar foreign reserves against rising trade deficits, stagnant wages from both consolidation and globalization, and a rising share of capital devouted to speculation on equities and derivatives (e.g, commodity futures bets ARE derivative contracts). Three cheers for center aisle politics. ]

Darryl FKA Ron -> Darryl FKA Ron... , January 13, 2014 at 07:55 AM

"devouted to speculation"

[Was that a spelling error or devine inspiration?]

Julio -> Darryl FKA Ron... , January 13, 2014 at 08:47 AM

"40 million refugees with no place on this earth to call their home
One for every aimless graduate with nothing else to show for it but loans
And those of us who make a mark using someone else's blood
Our western stain won't wash away, won't vanish in the flood
It sets deeper with each hurricane and tidal wave and war:
We want everything we see and once it's gone we just want more."

Kevin Devine

Darryl FKA Ron -> Julio ... , January 13, 2014 at 10:09 AM

Young men without jobs living in the nation with the world's most powerful millitary establishment will not make the world a better place to live for anyone. Might not even make it a place to live.

anne -> Julio ... , January 13, 2014 at 02:32 PM

http://lyrics.wikia.com/Kevin_Devine:Refugees

Kevin Devine – Refugees

anne -> anne... , January 13, 2014 at 02:38 PM

From -

Put Your Ghost to Rest:

The Burning City Smoking

2006

Antiderivative , January 13, 2014 at 08:16 AM

"Republicans weren't always like this. In fact, all of our major antipoverty programs -- Medicaid, food stamps, the earned-income tax credit -- used to have bipartisan support."

I agree and disagree to a point. While the Republican party used to be more moderate, as a whole, in the past, there was always a conservative wing in the GOP that opposed these programs.

For example, in 1961, Reagan gave his famous speech on Medicare - declaring that it would be the end of America as we know it. One day we would be telling stories to our grandchildren how America used to be the home to free men.

There has always been in element in the GOP to attack safety nets to the point of hysterical and absurd arguments. Over the years, the conservative wing has grew and become more vocal.

One of the main differences between liberals and conservatives, is that liberals see our weak labor markets, poverty, eroding mobility, and increased economic inequality as a market failure. Conservatives view it as a moral failure.

EMichael -> Antiderivative... , January 14, 2014 at 06:23 AM

The Birchers. Now the Tea Party.

Peter K. , January 13, 2014 at 08:33 AM

It seems to me that the somewhat controversial programs of Obamacare and the Federal Reserve's policies of forward guidance and QE have helped the poor. If Republicans had successfully blocked them, things would be worse. It's difficult to defend these programs against critics on the left and right because of the inherent difficulty in defending public policies given the evidence. It isn't as clear cut as one would like.

Likewise there are the Republicans' austerity policies like the sequester which Obama went along with.

kthomas -> Peter K.... , January 13, 2014 at 08:42 AM

"They both do it!" bs

Peter K. -> kthomas... , January 13, 2014 at 09:50 AM

Maybe I wasn't clear. I think Obamacare and the Fed have helped. I believe fiscal austerity has hurt. A number of smart people agree with these assessments.

kthomas -> Peter K.... , January 13, 2014 at 10:40 AM

much clearer, sir, thank you.

Lafayette , January 13, 2014 at 04:48 PM

INCOME FAIRNESS

First LBJ then Feckless Ronnie, by means of their tax policy to reduce rates at higher levels, visited the present consequences upon the American poor. (See info-graphic here: http://upload.wikimedia.org/wikipedia/commons/9/97/Historical_Mariginal_Tax_Rate_for_Highest_and_Lowest_Income_Earners.jpg )

Meaning that reduced income taxation means lower overall government revenues, which means reduced means to aid the poor by, for instance, adequate HealthCare or the subsidized housing or paying for postsecondary education that will give them the means to obtain well-paying jobs.

This sad fact is even more difficult to swallow given that DoD-expenditures have doubled in the 40 year period ending in 2012. See info-graphic here: http://www.washingtonpost.com/blogs/wonkblog/files/2013/01/defensechart.jpg . Do we really need all that spending to provide a defense of the nation now that the Cold War (extant in the 1960s) is over?

The plutocrats erected a statue to Ronnie for having reversed the good that FDR had wrought by increasing taxation upon them to levels of around 65%, that crept up inevitably to around 90%.

And, of course, the rich are still benefiting from the beneficial taxation (that peaks out at 30% in their level of income).

Are they paying their "fair share"? It depends upon how you pose the question. The CBO shows that the top 20% pay as much as 69% of all taxation revenues. See info-graphic here: http://en.wikipedia.org/wiki/File:2010_US_Tax_Liability_by_Income_Group_-_CBO.png

Yes, that's a lot of money they pay in taxes. But, given that their marginal rates do not exceed more than 30% of all revenues, then the answer seems to be "it's not enough". (See info-graphic here of top rates: http://en.wikipedia.org/wiki/File:U.S._Federal_Income_Tax_Rates_2013.png )

Besides, if the generally recognized Gini Coefficient depicts Income Disparity across all levels of income, then the US is shown to be the developed country with the worst Income Fairness of any on earth. (See info-graphic here: http://en.wikipedia.org/wiki/File:Gini_since_WWII.svg )

MY POINT?

Which means, according to the World Top Incomes Database developed by the Paris School of Economics? the following: 10% of American households garner about 52% of ALL HOUSEHOLD INCOME whilst the rest of us 90Percenters scramble after the remaining 48%.

Does that seem fair to you ... ?

Matt Young -> Lafayette ... , January 13, 2014 at 08:56 PM

No, the history says that reducing taxes on the rich allows you to borrow and spend, laying the cost on the middle class. Note, Clinton's tax hike came with budget cuts. Our 2013 tax hike, though meager, results in sequestering.

The problem here is dumbass economists too stupid to come up with any theory of government that explains supply and demand for government services. So dumbass economists resort to name calling, blaming their own failure of analysis on the other side. Political scientists are much worse, all they do is name calling.

Lafayette -> Matt Young... , January 14, 2014 at 04:40 AM

SERFDOM

{No, the history says that reducing taxes on the rich allows you to borrow and spend, laying the cost on the middle class.}

Can't imagine where you've concocted this notion from my reply. I posited the premise of increasing taxes upon our upper-class financial nobility who have reduced 15% of our people to poverty and serfdom.

{Note, Clinton's tax hike came with budget cuts. Our 2013 tax hike, though meager, results in sequestering.}

Historical fact of no consequence whatsoever.

The point about raising taxes on the rich is not just about reducing their far to easily-gained Net Worth. It is to teach that class a lesson about return-on-investment. For the moment, a level of taxation at only 30% allows them to accumulate vast Net Worth, which is simply reinvested in interest-bearing accounts for the most part.

Increasing taxation on interest-bearing accounts would induce them to place their savings in more economy-friendly investments that create jobs. The revenues would also help reduce deficits and improve government financing of society-friendly policies like a Universal Public HealthCare Option and Tertiary Education for those who cannot afford it.

These are both common policy rudiments of any modern society in this day and age. Except the US, of course ...

Lafayette -> Lafayette ... , January 14, 2014 at 05:57 AM

Moreover, the key point about taxation is this: Whilst an economy should reward risk-taking, there is no need whatsoever for the pot of Gold at the end of the rainbow to be unlimited and growing by leaps and bounds because it is too lowly taxed.

Especially not when 15% of fellow Americans are incarcerated below the Poverty Threshold. That economic fact is unacceptable. And it did not occur because "people are either too stupid or too lazy".

It occurred because of an inept policy as regards both educational level and our inability to prevent unskilled work from dislocation abroad.

mrrunangun , January 13, 2014 at 06:12 PM

The Republicans never did care about the poor and are not about to start. The question that bothers me is when the Democrats will resume working on behalf of the poor.

Lafayette -> mrrunangun... , January 14, 2014 at 06:04 AM

{The question that bothers me is when the Democrats will resume working on behalf of the poor.}

Musing about whether that will or will not happen in a blog will certainly not assist in bringing it about.

Only hard work militating for such an outcome will obtain the necessary results. Which can only happen if more progressives are voted into the HofR. And it will take a good ten years of well-considered legislation to right all the wrong that has occurred since the last War on Poverty in the 1960s.

We are running presently on borrowed time ...

[Feb 03, 2021] FTC says Amazon took away $62 million in tips from drivers

Feb 03, 2021 | abcnews.go.com

"The Federal Trade Commission said Tuesday that for more than two years, Amazon didn't pass on tips to drivers, even though it promised shoppers and drivers it would do so.

The FTC said Amazon didn't stop taking the money until 2019, when the company found out about the FTC's investigation . The drivers were part of Amazon's Flex business, which started in 2015 and allows people to pick up and deliver Amazon packages with their own cars. The drivers are independent workers, and are not Amazon employees.

The FTC said Amazon at first promised workers that they would be paid $18 to $25 per hour, and also said they would receive 100% of tips left to them by customers on the app .

But in 2016, the FTC said Amazon started paying drivers a lower hourly rate and used the tips to make up the difference. Amazon didn't disclose the change to drivers, the FTC said, and the tips it took from drivers amounted to $61.7 billion."

And a "team" at Amazon reprogrammed the app to steal tips. Managers, programmers, testers, documentation specialists, accountants, database wizards, etc. Nobody said a word. All corrupt to the bone. "Learn to code!"

[Feb 03, 2021] Biden DOJ Drops Yale Discrimination Suit After Trump DOJ Found Whites, Asians Treated Unfairly - ZeroHedge

Feb 03, 2021 | www.zerohedge.com

After the Trump Justice Department sued Yale following the results of a 2-year Civil Rights investigation which found "long-standing and ongoing" race-based discrimination, the Biden DOJ just dismissed the case without explanation .

... ... ...

The Trump DOJ had argued that the Ivy League university had violated federal civil rights law for "at least 50 years," by favoring Black and Hispanic students over Whites and Asians, according to The Hill .

The legal battle represented one of the Trump administration's moves to challenge affirmative action programs aimed at increasing diversity on campus, which some conservatives consider unfair and illegal.

Yale, which staunchly defended its admission practices, praised the DOJ's decision to drop the case in a statement, saying it was "gratified" by the decision. - The Hill

"Our admissions process has allowed Yale College to assemble an unparalleled student body, which is distinguished by its academic excellence and diversity," argued the university. "Yale has steadfastly maintained that its process complies fully with Supreme Court precedent, and we are confident that the Justice Department will agree."

The Trump administration notably instituted several measures to prevent universities from considering race as a factor during admissions, even joining a similar lawsuit against Harvard University.

[Feb 02, 2021] We told the people who were already enjoying a prosperous situation that things would be much better for their children and that we would be able to solve the outstanding problems.

Notable quotes:
"... "We told the people who were already enjoying a prosperous situation that things would be much better for their children and that we would be able to solve the outstanding problems. [But the new situation] presents a much more difficult task to fulfill. Because from the moment there is no longer a constant surplus to be distributed, the question of distribution is appreciably more difficult to resolve." ..."
Feb 02, 2021 | www.nakedcapitalism.com

Left in Wisconsin , January 29, 2021 at 4:03 pm

Highly recommend the Przeworski piece at Phenomenal World.

Most of it is reflections on/by 3 European leftist leaders from the 1970s-80s (German Prime Chancellor Willy Brandt, Austrian Chancellor Bruno Kreisky, and Swedish Prime Minister Olof Palme) about how the oil shocks and associated economic changes of the era presented a challenge to social democrats – including ending the belief/fantasy that reformism could be system-changing – that they (we) were not then, and I would argue still are not, able to address.

Palme spells out the difficulty:

"We told the people who were already enjoying a prosperous situation that things would be much better for their children and that we would be able to solve the outstanding problems. [But the new situation] presents a much more difficult task to fulfill. Because from the moment there is no longer a constant surplus to be distributed, the question of distribution is appreciably more difficult to resolve."

Brand echoes these concerns, noting that it is essential to prevent inequality from increasing as growth resumes. Eighteen months later, during another in person meeting on 25 May 1975, Kreisky makes the fiscal constraint even more explicit:

"It is precisely now that reforms should be made. It is just a question which. If we strongly develop social policies, we will not be able to finance them."

Also included an amazing graph of declining electoral support for left/SD parties in Europe.

[Feb 02, 2021] The Toxic University -- Zombie Leadership, Academic Rock Stars and Neoliberal Ideology

Jan 27, 2021 | www.amazon.com

This book considers the detrimental changes that have occurred to the institution of the university, as a result of the withdrawal of state funding and the imposition of neoliberal market reforms on higher education. It argues that universities have lost their way, and are currently drowning in an impenetrable mush of economic babble, spurious spin-offs of zombie economics, management-speak and militaristic-corporate jargon. John Smyth provides a trenchant and excoriating analysis of how universities have enveloped themselves in synthetic and meaningless marketing hype, and explains what this has done to academic work and the culture of universities – specifically, how it has degraded higher education and exacerbated social inequalities among both staff and students. Finally, the book explores how we might commence a reclamation. It should be essential reading for students and researchers in the fields of education and sociology, and anyone interested in the current state of university management.

Quotes

If we are to unmask what is going on within and to universities, then we need to look forensically at the forces at work and the pathological and dysfunctional effects that are placing academic lives in such jeopardy -- hence my somewhat provocative-sounding title 'the toxic university 5 .

One of the most succinct explanations of what is animating me in writing this book was put by Lucal (2015) -- echoing arguably the most significant sociologist ever. Charles Wright Mills (1971 [1959]) in his The sociological imagination -- when she said: ...neoliberalism is a critical public issue influencing apparently private troubles of college [university] students and teachers, (p. 3)

... ... ...

Pathological Organizational Dysfunction

Just on 40 years ago, for all of my sins, I studied 'organizational theory and 'management behaviour' as part of my doctorate in educational administration. I cannot remember encountering the term, but in light of mv subsequent four decades of working in universities around the world, I think I have encountered a good deal of what 'pathological organisational dysfunction" (POD) means in practice. I regard it is an ensemble term for a range of practices that fall well within the ambit of the 'toxic university 5 . The short explanation is that what I am calling POD has become a syndrome within which the toxic university has become enveloped in its unquestioning embrace of the tenets of neoliberalism -- marketization, competition, audit culture, and metrification. In other words. POD has become a major emblematic ingredient of the toxic university, which as Ferrell (2011) points out looks fairly unproblematic on the surface:

Higher education on the corporate model imagines students as consumers, choosing between knowledge products and brands. It imagines itself liberating the university from the dictates of the state/tradition/aristocratic self-replication, and putting it in the hands of its democratic stakeholders. It therefore naturally subscribes to the general management principles and practices of global corporate culture. These principles -- transparency, accountability, efficiency -- are hard to argue with in principle.

(p. 166 emphasis in original)

What is not revealed in this glossy reading of neoliberalism is the way in which it does its work, or its effects, as Ferrell (2011) puts it in relation to universities, the way it has 'wrecked something worthwhile" (p. 181).

John Gatto. an award-winning teacher of the year in New York, comes closest to what I mean by POD in his description of'psychopathic 5 organizations. Gatto (2001) says that the term psychopathic, as applied to organizations, while it might conjure up lurid images of deranged people running amuck, really means something quite different; he invokes the term to refer to people 'without consciences' (p. 303). The way he put it is that:

4.0 out of 5 stars Essential reading for anyone working in a UK university today. Reviewed in the United Kingdom on August 30, 2019

Reviewers of this book seem to conflate the price of, and access to, this book in an ironic context. This isn't fair as this is very much a book written from a formal academic perspective. In that sense the book is probably priced reasonably.

However, as I don't work in this field I found that I had to read around some of the topics in order to get a deeper understanding of the issues raised by the book. So one thing I think that author could do is to almost re-write the book in a more "journalistic" sense and this would make it more accessible to a wider audience.

As it stands, however, this book is right on the money. Reading almost every page brought from me nods of agreement at familiar practices from university "leaders". This book is therefore absolutely correct in its findings and this then makes it profoundly depressing as the book describes, in my view, the dismantling of the university system as we know it. Every chapter details things I have witnessed or heard about from other universities. The "rock star" academics section, usually focusing on "dynamic" researchers, is the highlight as I know enough people who fit the descriptions given - people who would sell their mothers to get a grant or get slightly higher up the greasy pole.

The critique of university leadership, marketing functions and financial (mis)management are also spot-on.

Overall, get past the formal academic nature of this book (it is not a book designed for a wide audience, which is a pity) and it is excellent, timely and deeply depressing.

PHILIP TAYLOR 5.0 out of 5 stars

Forensic Analysis of The Toxic Neo-Liberal University Reviewed in the United Kingdom on April 19, 2019

A brilliant exposition of the toxic neo-liberal University

[Feb 02, 2021] Corruption of IT education under neoliberalism: Schools teach to the test, depriving children of a rounded and useful education.

May 23, 2020 | discussion.theguardian.com

DrMidnite , 10 Apr 2019 17:04

"Schools teach to the test, depriving children of a rounded and useful education."

Boy do they. I work in Business/IT training and as the years have rolled on I and every colleague I can think of have noticed more and more people coming to courses that they are unfit for. Not because they are stupid, but because they have been taught to be stupid.

So used to being taught to the test that they are afraid to ask questions. Increasingly I get asked "what's the right way to do...", usually referring to situation in which there is no right way...

I had the great pleasure of watching our new MD describe his first customer-facing project, which was a disaster, but they "learned" from it. I had to point out to him that I teach the two disciplines involved - businesss analysis and project management - and if he or his team had attended any of the courses - all of which are free to them - they would have learned about the issues they would face, because (astonishingly) they are well-known.

I fear that these incurious adult children are at the bottom of Brexit, Trump and many of the other ills that afflict us. Learning how to do things is difficult and sometimes boring.

Much better to wander in with zero idea of what has already been done and repeat the mistakes of the past. I see the future as a treadmill where the same mistakes are made repetitively and greeted with as much surprise as if they had never happened before.

We have always been at war with Eastasia...

[Feb 01, 2021] Many neoliberalized US universities and colleges are greedy and have become too dependent on international students and their superior fee-paying ability compared with domestic students to finance bloated administrative staff salaries

Covid-19 exposed some warts of neoliberalism in higher education... They want to keep those lucrative international students flooding in, after all.
Notable quotes:
"... We align our identities with our institutions and think in very a short-term, metric-based fashion, seeing "success" (for instance) in terms of student recruitment (tuition fees paid in). Moreover, we're encouraged above all to be global in outlook: we look forward to our perennially "busy" international conference seasons and we emphasize the global and the transnational over the merely local or national ..."
"... our identities as academics are unavoidably embedded in a form of neoliberal hyperglobalisation. We rely on unrestricted flows of (wealthy) bodies across borders. ..."
"... We see this form of globalisation, and the benefits that accrue to us and our institutions from it, as a form of moral necessity : something it isn't possible even to argue against in good faith. Hence our loud assent to principles like open borders and always-on mass migration. ..."
"... Our commitment to the global as a form of moral mission has left us completely unprepared for what's currently unfolding. We are utterly unused to considering the material constraints of the economy our livelihoods depend on; that globalisation might come back to bite us; that the very aircraft that carry us across the world to conference destinations and field work sites would one day turn off the spigot of endlessly mobile bodies our careers and identities depend on. ..."
"... In this respect, I think of this post over at Crooked Timber, where John Quiggin (an economist I have a great deal of respect for) simply cannot bring himself to confront the possibility that the open borders dream might be dead. ..."
"... But the fact that the "export education" model was a disastrous wrong turn will take much longer to be accepted, I think, because of the widespread commitment I've been talking about here to the principle of the global as a form of moral necessity. ..."
May 22, 2020 | www.nakedcapitalism.com

Musicismath , April 6, 2020 at 1:04 pm

we've had a Minsky-like process operating on a society-wide basis: as daily risks have declined, most people have blinded themselves to what risk amounts to and where it might surface in particularly nasty forms. And the more affluent and educated classes, who disproportionately constitute our decision-makers, have generally been the most removed.

I see something very similar happening in academia. We align our identities with our institutions and think in very a short-term, metric-based fashion, seeing "success" (for instance) in terms of student recruitment (tuition fees paid in). Moreover, we're encouraged above all to be global in outlook: we look forward to our perennially "busy" international conference seasons and we emphasize the global and the transnational over the merely local or national (denigrated as narrow, provincial, and ideologically suspect).

We like to see ourselves as mobile subjects, bodies in constant motion, our minds Romantically untethered from the confines of any one nation state.

So our identities as academics are unavoidably embedded in a form of neoliberal hyperglobalisation. We rely on unrestricted flows of (wealthy) bodies across borders. Our institutions (or many of them) have become dependent on international students and their superior fee-paying ability compared with merely "domestic students."

We might agree in principle with ideas of a GND, say, or take an ecocritical approach to a novel or a play, but we're certainly not going to cut back on the number of international conferences we attend. Indeed, many of us go further.

We see this form of globalisation, and the benefits that accrue to us and our institutions from it, as a form of moral necessity : something it isn't possible even to argue against in good faith. Hence our loud assent to principles like open borders and always-on mass migration. We have to keep those lucrative international students flooding in, after all. (Not that we'd ever put it in terms as crassly material as that; after all, we don't work in university administration .)

Our commitment to the global as a form of moral mission has left us completely unprepared for what's currently unfolding. We are utterly unused to considering the material constraints of the economy our livelihoods depend on; that globalisation might come back to bite us; that the very aircraft that carry us across the world to conference destinations and field work sites would one day turn off the spigot of endlessly mobile bodies our careers and identities depend on.

Hence the reason why a lot of my colleagues are so lost right now. They're so used to living on a purely symbolic (or moral-symbolic) level that the materiality of this virus and its consequences seems like a crude insult. Many stubbornly hold on to their old commitments, unwilling to admit that the world might have changed.

In this respect, I think of this post over at Crooked Timber, where John Quiggin (an economist I have a great deal of respect for) simply cannot bring himself to confront the possibility that the open borders dream might be dead.

Where we go from here, I have no idea. But the fact that international and Erasmus students might be gone for the foreseeable future, and the major implications this will have for the financial viability or our universities, seems to be slowly sinking in.

But the fact that the "export education" model was a disastrous wrong turn will take much longer to be accepted, I think, because of the widespread commitment I've been talking about here to the principle of the global as a form of moral necessity.

[Jan 29, 2021] Deaths of Despair and the Incidence of Excess Mortality in 2020

Notable quotes:
"... By Casey Mulligan, Professor of Economics, University of Chicago and former Chief Economist of the White House Council of Economic Advisers. Originally published at VoxEU ..."
"... The spread of COVID-19 in the US has prompted extraordinary steps by individuals and institutions to limit infections. Some worry that 'the cure is worse than the disease' and these measures may lead to an increase in deaths of despair. Using data from the US, this column estimates how many non-COVID-19 excess deaths have occurred during the pandemic. Mortality in 2020 significantly exceeds the total of official COVID-19 deaths and a normal number of deaths from other causes. Certain characteristics suggest the excess are deaths of despair. Social isolation may be part of the mechanism that turns a pandemic into a wave of deaths of despair; further studies are needed to show if that is the case and how. ..."
"... See original post for references ..."
Jan 29, 2021 | www.nakedcapitalism.com

Yves here. While this paper does a good job of compiling and analyzing data about Covid deaths and excess mortality, and speculating about deaths of despair, I find one of its assumptions to be odd. It sees Covid-related deaths of despair as mainly the result of isolation. In the US, I would hazard that economic desperation is likely a significant factor. Think of the people who had successful or at least viable service businesses: hair stylists, personal trainers, caterers, conference organizers. One friend had a very successful business training and rehabbing pro and Olympic athletes. They've gone from pretty to very well situated to frantic about how they will get by.

While Mulligan does mention loss of income in passing in the end, it seems the more devastating but harder to measure damage is loss of livelihood, thinking that your way of earning a living might never come back to anything dimly approaching the old normal. Another catastrophic loss would be the possibility of winding up homeless, particularly for those who'd never faced that risk before.

By Casey Mulligan, Professor of Economics, University of Chicago and former Chief Economist of the White House Council of Economic Advisers. Originally published at VoxEU

The spread of COVID-19 in the US has prompted extraordinary steps by individuals and institutions to limit infections. Some worry that 'the cure is worse than the disease' and these measures may lead to an increase in deaths of despair. Using data from the US, this column estimates how many non-COVID-19 excess deaths have occurred during the pandemic. Mortality in 2020 significantly exceeds the total of official COVID-19 deaths and a normal number of deaths from other causes. Certain characteristics suggest the excess are deaths of despair. Social isolation may be part of the mechanism that turns a pandemic into a wave of deaths of despair; further studies are needed to show if that is the case and how.

The spread of COVID-19 in the US has prompted extraordinary, although often untested, steps by individuals and institutions to limit infections. Some have worried that 'the cure is worse than the disease'. Economists Anne Case and Angus Deaton mocked such worries as a "pet theory about the fatal dangers of quarantine". They concluded in the summer of 2020 that "a wave of deaths of despair is highly unlikely" because, they said, the duration of a pandemic is measured in months whereas the underlying causes of drug abuse and suicide take many years to accumulate (Case and Deaton 2020). With the extraordinary social distancing continuing and mortality data accumulating, now is a good time to estimate the number of deaths of despair and their incidence.

As a theoretical matter, I am not confident that demand and supply conditions were even approximately constant as the country went into a pandemic recession. Take the demand and supply for non-medical opioid use, which before 2020 accounted for the majority of deaths of despair. 1 I acknowledge that the correlation between opioid fatalities and the unemployment rate has been only weakly positive (Council of Economic Advisers February 2020, Ruhm 2019). However, in previous recessions, the income of the unemployed and the nation generally fell.

In this recession, personal income increased record amounts while the majority of the unemployed received more income than they did when they were working (Congressional Budget Office 2020). 2 Whereas alcohol and drug abuse can occur in isolation, many normal, non-lethal consumption opportunities disappeared as the population socially distanced. Patients suffering pain may have less access to physical therapy during a pandemic.

On the supply side, social distancing may affect the production of safety. 3 A person who overdoses on opioids has a better chance of survival if the overdose event is observed contemporaneously by a person nearby who can administer treatment or call paramedics. 4 Socially distanced physicians may be more willing to grant opioid prescriptions over the phone rather than insist on an office visit. Although supply interruptions on the southern border may raise the price of heroin and fentanyl, the market may respond by mixing heroin with more fentanyl and other additives that make each consumption episode more dangerous (Mulligan 2020a, Wan and Long 2020).

Mortality is part of the full price of opioid consumption and therefore a breakdown in safety production may by itself reduce the quantity consumed but nonetheless increase mortality per capita as long as the demand for opioids is price inelastic. I emphasise that these theoretical hypotheses about opioid markets in 2020 are not yet tested empirically. My point is that mortality measurement is needed because the potential for extraordinary changes is real.

The Multiple Cause of Death Files (National Center for Health Statistics 1999–2018) contain information from all death certificates in the US and would be especially valuable for measuring causes of mortality in 2020. However, the public 2020 edition of those files is not expected until early 2022. For the time being, my recent study (Mulligan 2020b) used the 2015–2018 files to project the normal number of 2020 deaths, absent a pandemic.

'Excess deaths' are defined to be actual deaths minus projected deaths. Included in the projections, and therefore excluded from excess deaths, are some year-over-year increases in drug overdoses because they had been trending up in recent years, especially among working-age men, as illicit fentanyl diffused across the country.

I measure actual COVID-19 deaths and deaths from all causes from a Centres for Disease Control and Prevention (CDC) file for 2020 that begins in week five (the week beginning 26 January 2020) and aggregates to week, sex, and eleven age groups. To minimise underreporting, I only use the data in this file through week 40 (the week ending 3 October). In separate analyses, I also use medical examiner data from Cook County, Illinois, and San Diego County, California, which indicate deaths handled by those offices through September (Cook) or June 2020 (San Diego) and whether opioids were involved, and 12-month moving sums of drug overdoses reported by CDC (2020) through May 2020.

Mortality in 2020 significantly exceeds what would have occurred if official COVID-19 deaths were combined with a normal number of deaths from other causes. The demographic and time patterns of the non-COVID-19 excess deaths (NCEDs) point to deaths of despair rather than an undercount of COVID-19 deaths. The flow of NCEDs increased steadily from March to June and then plateaued. They were disproportionately experienced by working-age men, including men as young as 15 to 24. The chart below, reproduced from Mulligan (2020b), shows these results for men aged 15–54. To compare the weekly timing of their excess deaths to a weekly measure of economic conditions, Figure 1 also includes continued state unemployment claims scaled by a factor of 25,000, shown together with deaths.

Figure 1 2020 weekly excess deaths by cause (men aged 15–54)

NCEDs are negative for elderly people before March 2020, as they were during the same time of 2019, due to mild flu seasons. Offsetting these negative NCEDs are about 30,000 positive NCEDs for the rest of the year, after accounting for an estimated 17,000 undercount of COVID-19 deaths in March and April.

If deaths of despair were the only causes of death with significant net contributions to NCEDs after February, 30,000 NCEDs would represent at least a 45% increase in deaths of despair from 2018, which itself was high by historical standards. At the same time, I cannot rule out the possibility that other non-COVID-19 causes of death or even a bit of COVID-19 undercounting (beyond my estimates) are contributing to the NCED totals.

One federal and various local measures of mortality from opioid overdose also point to mortality rates during the pandemic that exceed those of late 2019 and early 2020, which themselves exceed the rates for 2017 and 2018. These sources are not precise enough to indicate whether rates of fatal opioid overdose during the pandemic were 10% above the rates from before, 60% above, or somewhere in between.

Presumably, social isolation is part of the mechanism that turns a pandemic into a wave of deaths of despair. However, the results so far do not say how many, if any, come from government stay-at-home orders versus various actions individual households and private businesses have taken to encourage social distancing. The data in this paper do not reveal how many deaths of despair are due to changes in 'demand' – such as changes in a person's income, outlook, or employment situation – versus changes in 'supply' – such as the production of safety and a changing composition of dangerous recreational substances.

See original post for references


Terry Flynn , January 29, 2021 at 10:50 am

I agree with Yves's counter-argument though I must declare an interest, having done work on quality of life for 20 years and hope I'm not breaking site rules (given recent reminders about what is and isn't ok).

The excess deaths (particularly among men) certainly to me seems more consistent with a collapse in one's ability to do the "valued things in life" and prioritise (to SOME extent) economic outcomes over relationships. After all, the old trope that men cope less well than women with retirement is found in happiness, quality of life and other such data.

Whether or not one agrees with me, surely a test as to whether the authors or Yves has the better explanation for the excess deaths would involve looking at well-being and mortality of men who retire earlier than they'd like vs that of those whose spouse died earlier than expected (including the proper control groups).

Bob Hertz , January 29, 2021 at 10:59 am

Thanks for posting.

It would be interesting to find out the following:

1. Did the states with the most generous unemployment benefits (like MA or NJ) have fewer deaths of despair that the states with much stingier benefits?

2. Did the states which imposed various shutdowns (mainly blue states) have more deaths of despair than the states which stayed open, like SD or Florida?

My guess is that deaths of despair are too idiosyncratic to blame on Covid lockdowns, but I am not an expert at all about this.

1 Kings , January 29, 2021 at 11:47 am

They could also look for the link with 0% interest on people's saved money and seeing no f..ing end in sight as the beatings continue. Going down to zero does not make the people jolly.

Wukchumni , January 29, 2021 at 11:02 am

It used to be only men who would upon meeting another man, where the first question is likely 'What do you do for a living?', but with the advent of as many women working, probably appropriate there too.

Nobody ever asks firstly what your hobby is or what sports team you follow, as the job query tells you everything about the person in one fell swoop.

There's a lot of people whose jobs were kind of everything in their lives, who had never gone without work ever, that are now chronically unemployed.

Tomonthebeach , January 29, 2021 at 12:24 pm

Anybody who has studied suicide readily appreciates that the act is impulsive. Case & Deaton are probably correct in the limited sense of economic despair derived from transitioning away from fossil fuels and industrial production to jobs requiring education unreachable to middle-aged coal miners. However, those deaths were likely derived from easy access to opioids. Most of those job losses led workers to make disability claims (achy backs) to extend income. The treatment for achy back is pain killers – oxy-something or other back then. Those same pills killed the pain of failure. Over time, addiction set in and, according to Koob & LeMoal's 2008 addiction model, increased consumption becomes necessary to stay pain-free. Physicians would surely not up dosages indefinitely and that put addicts on the street literally. All that took time to evolve. But times have changed. Using your family doc to get you high is no longer an option. So, Mulligan makes sense.

IM Doc , January 29, 2021 at 1:39 pm

As an internist with boots on the ground – I cannot express enough gratitude that these kinds of reports are getting out.

As busy as I have been this past year with COVID, the actual patients struggling with anxiety and depression have just dwarved the actual COVID numbers.

I cannot even begin to tell you the heartbreak of being a provider and having 20-40 year old young men in your office crying their eyes out. Lots of job loss, lots of income issues, lots of not being able to pay for things for your kids. All the while being completely unable to find other work or extra work. It is truly a nightmare for these people. And the attitude by so many of the lockdown Karens who seem to have no conception of how this is all going down for these young people has been deeply worrisome to me.
It is really not getting better – if anything slowly getting worse.

I would agree with the article above that loneliness is a problem – this is for the minority – mainly older people and should not be dismissed.

Loneliness is not the big problem however, in my experience. The big problem is the economic despair for our young people and the complete loss of socialization for our teenagers and kids.

And I have no clue what the answer is.

[Jan 28, 2021] Poor Lives Matter, But Less

Jan 26, 2021 | www.nakedcapitalism.com

Yves here. Sundaram discusses how the obsession with metrics, a long standing favorite topic of ours (see Management's Great Addiction ) produces policies that give short shrift to the poor and poor countries. One of the big fallacies is treating money as the measure of the value and quality of life. For instance, reducing the instance of cancer is worth more in rich countries because their lives are valued more highly in these models. Similarly, they often fall back on unitary measures like lifespan, and so don't capture outcomes like diets heavy in low nutrient foods (think simple sugars) producing higher rates of non-communicable diseases and hence less healthy citizens

By Jomo Kwame Sundaram, a former economics professor, who was United Nations Assistant Secretary-General for Economic Development, and received the Wassily Leontief Prize for Advancing the Frontiers of Economic Thought. Originally published at his website

Current development fads fetishize data, ostensibly for 'evidence-based policy-making': if not measured, it will not matter. So, forget about getting financial resources for your work, programmes and projects, no matter how beneficial, significant or desperately needed.

Measure for Measure

Agencies, funds, programmes and others lobby and fight for attention by showcasing their own policy agendas, ostensible achievements and potential. Many believe that the more indicators they get endorsed by the 'international community', the more financial support they can expect to secure.

Collecting enough national data to properly monitor progress on the Sustainable Development Goals is expensive. Data collection costs, typically borne by the countries themselves, have been estimated at minimally over three times total official development assistance (ODA).

Remember aid declined after the US-Soviet Cold War, and again following the 2008-9 global financial crisis. More recently, much more ODA is earmarked to 'support' private investments from donor countries.

With data demands growing, more pressure to measure has led to either over- or under-stating both problems and progress, sometimes with no dishonest intent. 'Errors' can easily be explained away as statistics from poor countries are notoriously unreliable.

Political, bureaucratic and funding considerations limit the willingness to admit that reported data are suspect for fear this may reflect poorly on those responsible. And once baseline statistics have been established, similar considerations compel subsequent 'consistency' or 'conformity' in reporting.

And when problems have to be acknowledged, 'double-speak' may be the result. Organisations may then start reporting some statistics to the public, with other data used, typically confidentially, for 'in-house' operational purposes.

Money, Money, Money

Economists generally prefer and even demand the use of money-metric measures. The rationale often is that no other meaningful measure is available. Many believe that showing ostensible costs and benefits is more likely to raise needed funding. Using either exchange rates or purchasing power parity (PPP) has been much debated. Some advocate even more convenient measures such as the prices of a standard McDonald's hamburger in different countries.

Money-metrics imply that estimated economic losses due to, say, smoking or non-communicable diseases ( NCD s), including obesity, tend to be far greater in richer countries, owing to the much higher incomes lost or foregone as well as costs incurred.

Development Discourse Changes

The four UN Development Decades after 1960 sought to accelerate economic progress and improve social wellbeing. Unsurprisingly, for decades, there have been various debates in the development discourse on measuring progress.

The rise of neoliberal economic thinking, claiming to free markets, has instead mainly strengthened and extended private property rights. Rejecting Keynesian and development economics, both associated with state intervention, neoliberalism's influence peaked around the turn of the century.

The so-called 'Washington Consensus ' of US federal institutions from the 1980s also involved the Bretton Woods institutions, the International Monetary Fund (IMF) and World Bank, both headquartered in the American capital.

In 2000, the UN Secretariat drafted the Millennium Declaration. This, in turn, became the basis for the Millennium Development Goals which gave primacy to halving the number of poor. After all, who would object to reducing poverty. The poor were defined with reference to a poverty line, somewhat arbitrarily defined by the Bank.

Poverty Fetish

Presuming money income to be a universal yardstick of wellbeing, this poverty measure has been challenged on various grounds. Most in poorer developing countries sense that much nuance and variation are lost in such measures, not only for poverty, but also for, say, hunger .

Anyone familiar with the varying significance, over time, of cash incomes and prices in most countries will be uncomfortable with such singular measures. But they are nonetheless much publicised and have implied continued progress until the Covid-19 pandemic.

Rejection of such singular poverty measures has led to multi-dimensional poverty indicators, typically to meet 'basic needs'. While such 'dashboard' statistics offer more nuance, the continued desire for a single metric has led to the development, promotion and popularisation of composite indicators.

Worse, this has been typically accompanied by problematic ranking exercises using such composite indicators. Many have become obsessed with such ranking, instead of the underlying socio-economic processes and actual progress.

Blind Neglect

Improving such metrics has thus become an end in itself, with little debate over such one-dimensional means of measuring progress. The consequent 'tunnel vision' has meant ignoring other measures and indicators of wellbeing.

In recent decades, instead of subsistence agriculture, cash crops have been promoted. Yet, all too many children of cash-poor subsistence farmers are nutritionally better fed and healthier than the offspring of monetarily better off cash crop or 'commercial' farmers.

Meanwhile, as cash incomes rise, those with diet-related NCDs have been growing. While life expectancy has risen in much of the world, healthy life expectancy has progressed less as ill health increasingly haunts the sunset years of longer lives.

Be Careful What You Wish For

Meanwhile, as poor countries get limited help in their efforts to adjust to global warming, rich countries' focus on supporting mitigation efforts has included, inter alia, promoting 'no-till agriculture'. Thus attributing greenhouse gas emissions implies corresponding mitigation efforts via greater herbicide use .

Maximising carbon sequestration in unploughed farm topsoil requires more reliance on typically toxic, if not carcinogenic pesticides, especially herbicides. But addressing global warming should not be at the expense of sustainable agriculture.

Similarly, imposing global carbon taxation will raise the price of, and reduce access to electricity for the 'energy-poor', who comprise a fifth of the world's population. Rich countries subsidising affordable renewable energy for poor countries and people would resolve this dilemma.

Following the 2008-2009 global financial crisis, the UN proposed a Global Green New Deal (GGND) which included such cross-subsidisation by rich countries of sustainable development progress elsewhere.

The 2009 London G20 summit succeeded in raising more than the trillion dollars targeted. But the resources mainly went to strengthening the IMF, rather than for the GGND proposal. Thus, the finance fetish blocked a chance to revive world economic growth, with sustainable development gains for all.

Sound of the Suburbs , January 27, 2021 at 4:00 am

The globalists found just the economics they were looking for.
The USP of neoclassical economics – It concentrates wealth.
Let's use it for globalisation.

Mariner Eccles, FED chair 1934 – 48, observed what the capital accumulation of neoclassical economics did to the US economy in the 1920s.
"a giant suction pump had by 1929 to 1930 drawn into a few hands an increasing proportion of currently produced wealth. This served then as capital accumulations. But by taking purchasing power out of the hands of mass consumers, the savers denied themselves the kind of effective demand for their products which would justify reinvestment of the capital accumulation in new plants. In consequence as in a poker game where the chips were concentrated in fewer and fewer hands, the other fellows could stay in the game only by borrowing. When the credit ran out, the game stopped"

This is what it's supposed to be like.
A few people have all the money and everyone else gets by on debt.

[Jan 26, 2021] Appeals to bring more young Russians to US as 'soft power' tool could backfire, there's no guarantee they will like what they see

Jan 26, 2021 | www.moonofalabama.org

vk , Jan 25 2021 17:23 utc | 130

Trump's decoupling dream come true.

--//--

Appeals to bring more young Russians to US as 'soft power' tool could backfire, there's no guarantee they will like what they see

McFaul says that "Biden's team should come up with new ways to grow these ties [with ordinary Russians] even over Putin's objections. In the long run, forging and sustaining links with Russian society will undermine anti-American propaganda as well as American stereotypes about Russia."

To this, McFaul adds that, "The new administration should make it easier for Russians to study in and travel to the United States," and urges European states to do the same.

My take on this is very simple: the West cannot even absorb their own youth anymore. What makes them think they can absorb Russia's?

Besides, it's not so simple an operation to attract young people to your country to study. The logistics are very complicated, and it requires a lot of resources not even counting the promise of jobs within your own country (in the case of STEM students). Even the brain drain from countries with large populations such as China and India don't surpass much above the low to mid six digits. And those programs take time to gain traction - decades in most cases. And all of this already taking into account the fact that your country still has to be an attractive place.

Discontent already exists in Americans with Indian STEM from H1B1 visa program. As the excess population rises, so will resistance to new influx of immigrants - specially high-skilled ones. This will snowball to a stage where Americans become second-class citizens in their own country (as you would have to guarantee the jobs for the foreigners in order to sweeten the deal).

[Jan 26, 2021] How will the USA regain its advantage in this world?

Decimation of education by neoliberalism and neoliberal brainwashing is the root of all evil.
Jan 26, 2021 | www.moonofalabama.org
uncle tungsten , Jan 26 2021 0:28 utc | 168

How will the USA regain its advantage in this world?

I was looking back at some earlier reports to gain an insight into the means by which the USA gave the game away and the means that might restore its place in the economic world. It has allowed itself to be completely captive to global private finance AND ownership of the keys to its salvation. If it dfoes not nationalise its key industries then it can rest assured of its doom. IMO it is now almost impossible for it to nationalise a pizza parlour let alone an education or engineering sector.

This (posted here before) from Strategic Culture of November 2020 "How a Wise Decoupling May Be a Good Thing for Both China and the West". It is worth reconsidering from time to time.

If the USA is to survive the oncoming collapse and break free of its apocalyptic war agenda, then certain realities WILL have to occur. These realities include (but are not limited to):

1) Regaining its lost industrial potential, with an emphasis on the machine tool sector which the west once enjoyed as a world leader

2) Regaining the lost scientific and technological capacities which the USA once had when it still valued productive thinking under the days of JFK and NASA

3) Regaining a grasp of education which values productive citizens over consumer subjects

4) Regaining control over national credit under federal banking, dirigisme and other long-term investment practices that rely on regulating Wall Street speculation and other unproductive forms of banking.

How might these vital capacities be regained?....

The USA is incapable of nationalising its education sector and is incapable systemically of having the patience to await the benefits. It will continue to sustain an education sector that is designed to transfer $$$ in taxation directly to private corporation pockets and to do so by reducing the the number of salary earners between the input $ and the $ that end in private corporation pockets. The private corporations will continue to perfect the swindle of returning the least possible effort in return for those $$$.

Ditto for defence spending and every other sector.

The USAi is hoist by its own petard and has a dull brained president surrounded by ideological obsessives, cultural paranoiacs, a narcissistic Congress and Senate. It will not be capable of restoring its real economy and will continue to imagine itself as a world leader. It will berate and negate and cancel all unorthodox thought from those that favour nation building.

The rest of the world's nations had better take note. Clearly many have.

[Jan 22, 2021] Meritocracy used to work, because of succession planning and training.

Jan 22, 2021 | www.unz.com

Curmudgeon , says: January 21, 2021 at 10:20 pm GMT • 3.7 hours ago

@James Speaks rn. I'm not fine with assuming that the end product will automatically produce merit beyond what meritocracy is today – brown-nosing. True merit is you have demonstrated you can do it.

The last 40+ years have seen an endless stream of "bright boys" graduating university with MBAs, getting involved in the management structure as "change agents", screwing up the business for 5 years then "taking another opportunity" to screw up a different company.

Prof. Henry Mintzberg calls them the wrong people, at the wrong time, for the wrong reason, because they don't have a clue how the real world works. But hey, they are high IQ people, so they must have merit.

Uncoy , says: Website January 21, 2021 at 10:52 pm GMT • 3.2 hours ago
@Curmudgeon r medicine and sophisticated writing. The issue is that these individual were poorly educated – first and foremost in the "greed is good" school of the America. After sipping deeply of this dead-end, destructive ethical framework, these individuals were then carefully trained on how to extract value from an economy/a company rather than add value.

High IQ is still desperately needed for progress and to maintain civilisation. But put to ill-use, high IQ individuals can wreak commensurately wreak greater havoc.

Analogies could be made to guns, armies, cars. All of them can be put to exceptionally ill-use. Few would argue that a modern nation can live without automobiles or some kind of armed defence force.

[Dec 20, 2020] The American ruling class has failed on pretty much every issue of significance for the past several decades

Neoliberals as an occupying force for the country
Notable quotes:
"... The bottom line is the true enemies of the American people are no foreign nation or adversary---the true enemy of the American people are the people who control America. ..."
"... This way of thinking points to a dilemma for the American ruling class. Contrary to a lot of the rhetoric you hear, much of the American ruling class, including the "deep state" is actually quite anti-China. To fully account for this would take longer than I have here. But the nutshell intuitive explanation is that the ruling class, particularly Wall Street, was happy for the past several decades to enrich both themselves and China by destroying the American working class with policies such as "free-trade" and outsourcing. But in many ways the milk from that teat is no more, and now you have an American ruling class much more concerned about protecting their loot from a serious geopolitical competitor (China) than squeezing out the last few drops of milk from the "free trade." ..."
Dec 20, 2020 | www.moonofalabama.org
Bemildred , Dec 19 2020 2:00 utc | 124

This is awesome, he nails the dilemma which our owners are confronted with;

I'll put it this way: It is not as though the American ruling class is intelligent, competent, and patriotic on most important matters and happens to have a glaring blind spot when it comes to appreciating the threat of China. If this were the case, it would make sense to emphasize the threat of China above all else.

But this is not the case. The American ruling class has failed on pretty much every issue of significance for the past several decades. If China were to disappear, they would simply be selling out the country to India, Saudi Arabia, Vietnam, or some other country (in fact they are doing this just to a lesser extent).

Our ruling class has failed us on China because they have failed us on everything. For this reason I believe that there will be no serious, sound policy on China that benefits Americans until there is a legitimate ruling class in the United States. For this reason pointing fingers at the wickedness and danger of China is less useful than emphasizing the failure of the American ruling class. The bottom line is the true enemies of the American people are no foreign nation or adversary---the true enemy of the American people are the people who control America.

This way of thinking points to a dilemma for the American ruling class. Contrary to a lot of the rhetoric you hear, much of the American ruling class, including the "deep state" is actually quite anti-China. To fully account for this would take longer than I have here. But the nutshell intuitive explanation is that the ruling class, particularly Wall Street, was happy for the past several decades to enrich both themselves and China by destroying the American working class with policies such as "free-trade" and outsourcing. But in many ways the milk from that teat is no more, and now you have an American ruling class much more concerned about protecting their loot from a serious geopolitical competitor (China) than squeezing out the last few drops of milk from the "free trade."

The Zürich Interviews - Darren J. Beattie: If Only You Knew How Bad Things Really Are


Grieved , Dec 19 2020 3:12 utc | 129

@102 karlof1 - "By deliberately setting policy to inflate asset prices, the Fed has priced US labor out of a job, while as you report employers sought labor costs that allowed them to remain competitive."

I never heard it said so succinctly and truly as this before. That is what happened isn't it? The worker can't afford life anymore, in this country.

And if the worker can't afford the cost of living - who bears the cause of this, how follows the remedy of this, and what then comes next?

I really appreciate your point of view, which is the only point of view, which is that the designers of the economy, the governors of the economy, have placed the workers of the economy in a position that is simply just not tenable.

No wonder they strive to divide in order to rule - because they have over-reached through greed and killed the worker, who holds up the society.

How long can the worker flounder around blaming others before the spotlight must turn on the employer?

uncle tungsten , Dec 19 2020 3:12 utc | 130

Bemildred #115

You have to remember these people really do think they are better. They do think in class terms even if they avoid that rhetoric in public. The problem is they thought they could control China like they did Japan. That was dumb then and it looks even dumber now. You can see similar dumbness in their lack of grip on any realisitic view of Russia. Provincials really. Rich peasants.

Thank you, they certainly DO think in class terms ALWAYS. + Rich peasants is perfect :))

Thankfully they are blinded by hubris at the same time. The USA destroyed the Allende government in Chile in 1973. After the Nixon Kissinger visit to China in 1979 they assumed they could just pull a color revolution stunt when they deemed it to be the right time. Perhaps in their hubris they thought every Chinese worker would be infatuated with capitalism and growth.

They tested that out in the People Power colour (yellow) revolt in the Filipines in 1986 following a rigged election by Marcos. In 1989 only 16 years after China had been buoyed up with growth and development following the opening to USA capitalism, they tried out the same trick in Tienanmen square in China but those students were up against the ruling party of the entire nation - not the ruling class. BIG MISTAKE. The ruling party of China was solidly backed by the peasant and working class that was finally enjoying some meager prosperity and reward a mere 40 years after the Chinese Communist Party and their parents and grandparents had liberated China from 100 years of occupation, plunder, human and cultural rapine and colonial insult. Then in 2020 it was tried on again in Hong Kong. FAIL.

The hubris of the ruling class and its running dogs is pathetic.

We see the same with Pelosi and the ruling class in the Dimoratss today. They push Biden Harris to the fore, piss on the left and refuse to even hold a vote on Medicare for All in the middle of a pandemic. Meanwhile the USAi ruling class has its running dogs and hangers on bleating that "its wrong tactic, its premature, its whatever craven excuse to avoid exposing the ruling class for what they are - thieves, bereft of compassion, absent any sense of social justice, fakes lurking behind their class supposition.

They come here to the bar with their arrogant hubris, brimming with pointless information some even with emoji glitter stuck on their noses. Not a marxist or even a leftie among them. Still its class that matters and its the ruling class that we must break.

chu teh , Dec 19 2020 4:00 utc | 131

@102 karlof1 and Grieved | Dec 19 2020 3:12 utc | 129

I did not understand inflate-assets/suppress-workers and forgot to return to it to clear it up. Grieved sent me back to Karlof1. I just got it.

That viewpoint indeed explains method of operation to accomplish the results I observed. When Nixon was forced to default on Bretton Woods use of Gold Exchange Standard* [the USD is as good as gold], then printing fiat solved the problem [threat to US inventory of gold]....but printing fiat [no longer redeemable as a promise convert to gold] became the new problem [no way to extinguish the promises to redeem/pay].

So how to proceed? Aha! Steal from the workers; squeeze 'em, entertain and dazzle 'em!.. Such an elegant solution...slow, certain and hardly noticeable...like slow-boiling frogs...an on-going project as we blog.

Now I'll read Karlof1's link.

[Nov 28, 2020] Krystal and Saagar- New Study Shows Deaths Of Despair Hitting Poor Working Class Of ALL Races

Nov 28, 2020 | www.youtube.com

Daniel George @drdanielgeorge • Nov 10 000

A research team I'm part of just published data looking at the 'diseases of despair' crisis over the last decade (full article is free and available online).

A brief summary of our findings below, and some thoughts....

Trends in the diagnosis of diseases of despair in the United States...

Background and objective Increasing mortality and decreasing life expectancy in the USA are largely attributable to accidental...

See also: Saagar Enjeti- How Both Parties FAILED Us On Stimulus Guaranteeing Mass Unemployment, Business Death - YouTube

[Nov 28, 2020] Diseases of despair diagnoses increase in Pennsylvania - EurekAlert! Science News

Nov 28, 2020 | www.eurekalert.org

Diseases of despair diagnoses increase in Pennsylvania

PENN STATE

Research News

AUDIO: FOR THE FIRST TIME IN NEARLY 100 YEARS, LIFE EXPECTANCY IS DECREASING IN THE UNITED STATES. IN THIS EPISODE, DR. LARRY SINOWAY DISCUSSES THE DECLINE AND HOW IT RELATES TO... view more

CREDIT: PENN STATE CLINICAL AND TRANSLATIONAL SCIENCE INSTITUTE

Medical diagnoses involving alcohol-related disorders, substance-related disorders and suicidal thoughts and behaviors -- commonly referred to as diseases of despair -- increased in Pennsylvania health insurance claims between the years 2007 and 2018, according to researchers from Penn State Clinical and Translational Science Institute and Highmark Health Enterprise Analytics.

Princeton economists Anne Case and Angus Deaton proposed the concept of deaths of despair in 2015. Case and Deaton's research observed a decline in life expectancy of middle-aged white men and women between 1999 and 2015 -- the first such decline since the flu pandemic of 1918. They theorized that this decline is associated with the social and economic downturn in rural communities and small towns. These changes include loss of industry, falling wages, lower marriage rates, increasing barriers to higher education, an increase in one-parent homes and a loss of social infrastructure.

"It is theorized that these changes have fostered growing feelings of despair including disillusionment, precariousness and resignation in many peoples' lives," Daniel George, associate professor of humanities and public health sciences, Penn State College of Medicine, said. "Despair can trigger emotional, cognitive, behavioral and even biological changes, increasing the likelihood of diseases that can progress and ultimately culminate in deaths of despair."

With the commonwealth's considerable rural and small-town population, particularly around Penn State campuses, Penn State Clinical and Translational Science Institute led a research study to understand the rate of diseases of despair in Pennsylvania. Institute researchers collaborated with Highmark Health, one of the state's largest health insurance providers. Highmark provides employer-sponsored, individual, Affordable Care Act and Medicare plans.

Highmark Health's Enterprise Analytics team analyzed the claims of more than 12 million people on their plans from 2007 to 2018. Penn State did not have access to Highmark member data or individual private health information. Although the insurance claims included members from neighboring states, including West Virginia, Delaware, and Ohio, the majority of the claims were from Pennsylvania residents. Researchers reported their results in BMJ Open .

The researchers defined diseases of despair as diagnoses related to alcohol use, substance use and suicidal thoughts or behaviors. They searched the claims data for the International Classification of Diseases (ICD) codes related to these diagnoses. ICD codes form a standardized system maintained by the World Health Organization and are used in health records and for billing.

The researchers found that the rate of diagnoses related to diseases of despair increased significantly in the Highmark claims in the past decade. Nearly one in 20 people in the study sample was diagnosed with a disease of despair. Between 2009 and 2018, the rates of alcohol-, substance-, and suicide-related diagnoses increased by 37%, 94% and 170%. Following Case and Deaton's findings, the researchers saw the most substantial percentage increase in disease of despair diagnoses among men ages 35 to 74, followed by women ages 55 to 74 and 18 to 34.

The rate of alcohol-related diagnoses significantly increased among men and women ages 18 and over. The most dramatic increases were among men and women ages 55 to 74. Rates increased for men in this age group by 50% and 80% for women.

The rate of substance-related diagnoses roughly doubled for men and women ages 35 to 54 and increased by 170% in ages 55 to 74. In 2018, the most recent year of claims included in the study, rates of substance-use diagnoses were highest in 18-to-34-year-olds.

The rate of diagnoses related to suicidal thoughts and behaviors increased for all age groups. Among 18-to-34-year-olds, rates increased by at least 200%. The rate for all other age groups increased by at least 60%.

The type of insurance patients had also mattered. People with Medicare insurance had 1.5 times higher odds of having a disease of despair diagnosis and those with Affordable Care Act insurance had 1.3 times higher odds.

One increase stood out to researchers: among infants, substance-related diagnoses doubled.

"This increase was entirely attributable to neonatal abstinence syndrome and corresponded closely with increases in substance-related disorders among women of childbearing age," Emily Brignone, senior research scientist, Highmark Health Enterprise Analytics, said.

Neonatal abstinence syndrome occurs when a baby withdraws from substances, especially opioids, exposed to in the womb.

Future research can concentrate on identifying "hot spots" of diseases of despair diagnoses in the commonwealth to then study the social and economic conditions in these areas. With this data, researchers can potentially create predictive models to identify communities at risk and develop interventions.

"We found a broad view of who is impacted by increases in diseases of despair, which cross racial, ethnic and geographic groups," Jennifer Kraschnewski, professor of medicine, public health sciences and pediatrics, said. "Although originally thought to mostly affect rural communities, these increases in all middle-aged adults across the rural-urban continuum likely foreshadows future premature deaths."

###

National Center for Advancing Translational Science of the National Institutes of Health through Penn State Clinical and Translational Science Institute funded this research.

A podcast about this topic is available here.

Other researchers on this project were Lawrence Sinoway, director, Penn State Clinical and Translational Science Institute; Curren Katz and Robert Gladden, Highmark Health Enterprise Analytics; Charity Sauder, administrative director, Penn State Clinical and Translational Science Institute; and Andrea Murray, project manager, Penn State College of Medicine.

Disclaimer: AAAS and EurekAlert! are not responsible for the accuracy of news releases posted to EurekAlert! by contributing institutions or for the use of any information through the EurekAlert system.

[Nov 28, 2020] Deplorables, or Expendables

Notable quotes:
"... The Expendables: How the Middle Class got Screwed by Globalization ..."
"... The Innovation Illusion ..."
"... The Expendables ..."
"... Napoleon Linarthatos is a writer based in New York. ..."
Nov 28, 2020 | www.theamericanconservative.com

Home / Articles / Economy / Deplorables, Or Expendables? ECONOMY Deplorables, Or Expendables?

Rubin offers some valuable, albeit well-known, critiques of globalized trade, but doesn't go far beyond that. (By momente/Shutterstock)

NOVEMBER 26, 2020

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12:01 AM

NAPOLEON LINARTHATOS

Back in 2013 a group of Apple employees decided to sue the global behemoth. Every day, after they were clocking out, they were required to go through a corporate screening where their personal belongings were examined. It was a process required and administered by Apple. But Apple did not want to pay its employees for the time it had required them to spend. It could be anywhere from 40 to 80 hours a year that an employee spent going through that process. What made Apple so confident in brazenly nickel-and-diming its geniuses?

Jeff Rubin, author of The Expendables: How the Middle Class got Screwed by Globalization , has an answer to the above question that is easily deduced from the subtitle of his book. The socio-economic arrangements produced by globalization have made labor the most flexible and plentiful resource in the economic process. The pressure on the middle class, and all that falls below it, has been so persistent and powerful, that now " only 37 percent of Americans believe their children will be better off financially than they themselves are. Only 24 percent in Canada or Australia feel the same. And in France, that figure dips to only 9 percent." And "[i]n the mid-1980s it would have taken a typical middle-income family with two children less than seven years of income to save up to buy a home; it now takes more than ten years. At the same time, housing expenditures that accounted for a quarter of most middle-class household incomes in the 1990s now account for a third ."

https://lockerdome.com/lad/13045197114175078?pubid=ld-dfp-ad-13045197114175078-0&pubo=https%3A%2F%2Fwww.theamericanconservative.com&rid=www.nakedcapitalism.com&width=838

The story of globalization is engraved in the " shuttered factories across North America, the boarded-up main streets, the empty union halls." Rubin does admit that there are benefits accrued from globalization, billions have been lifted up out of poverty in what was previously known as the third world, wealth has been created, certain efficiencies have been achieved. The question for someone in the western world is how much more of a price he's willing to pay to keep the whole thing going on, especially as we have entered a phase of diminishing returns for almost all involved.

As Joel Kotkin has written, "[e]ven in Asia, there are signs of social collapse. According to a recent survey by the Korea Institute for Health and Social Affairs, half of all Korean households have experienced some form of family crisis, many involving debt, job loss, or issues relating to child or elder care." And "[i]n "classless" China, a massive class of migrant workers -- over 280 million -- inhabit a netherworld of substandard housing, unsteady work, and miserable environmental conditions, all after leaving their offspring behind in villages. These new serfs vastly outnumber the Westernized, highly educated Chinese whom most Westerners encounter. " "Rather than replicating the middle-class growth of post–World War II America and Europe, notes researcher Nan Chen, 'China appears to have skipped that stage altogether and headed straight for a model of extraordinary productivity but disproportionately distributed wealth like the contemporary United States.'"

Although Rubin concedes to the globalist side higher GDP growth, even that does not seem to be so true for the western world in the last couple decades. Per Nicholas Eberstadt, in "Our Miserable 21st Century," "[b]etween late 2000 and late 2007, per capita GDP growth averaged less than 1.5 percent per annum." "With postwar, pre-21st-century rates for the years 2000–2016, per capita GDP in America would be more than 20 percent higher than it is today."

Stagnation seems to be a more apt characterization of the situation we are in. Fredrik Erixon in his superb The Innovation Illusion , argues that "[p]roductivity growth is going south, and has been doing so for several decades." "Between 1995 and 2009, Europe's labor productivity grew by just 1 percent annually." Noting that "[t]he four factors that have made Western capitalism dull and hidebound are gray capital, corporate managerialism, globalization, and complex regulation."

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Contrary to popular belief, globalization has functioned as a substitute for innovation and growth. With globalization on the march, the western ruling class could continue to indulge in its most preferred activities, regulation and taxation, in an environment where both of these political addictions appeared sustainable. Non-western elites could perpetuate their authoritarian regimes, garnering growth and legitimacy, from the access to the western markets. Their copy-and-paste method of "innovation" from western firms would fit well with an indigenous business class composed of mostly insiders and ex-regime apparatchiks.

There are plenty of criticisms that can be laid at the feet of globalization. The issue with Rubin's book is that is does not advance very much beyond some timeworn condemnations of it. One gets the sense that the value of this book is merely in its audacity to question the conventional wisdom on the issue at hand. Rubin, who is somewhat sympathetic to Donald Trump, seems to be much closer to someone like Bernie Sanders, especially an earlier version of Sanders that dared to talk about the debilitating effects of immigration on the working class.

Like Sanders, Rubin starts to get blurry as he goes from the condemnation phase to the programmatic offers available. What exactly would be his tariffs policy, how far he would go? What would be the tradeoffs of this policy? Where we could demarcate a reasonable fair environment for the worker and industry and where we would start to create another type of a stagnation trap for the whole economy? All these would be important questions for Rubin to grapple with and would give to his criticisms more gravitas.

It would have also been of value if he had dealt more deeply with the policies of the Trump administration. On the one hand, the Trump administration cracked down on illegal and legal immigration. It also started to use tariffs and other trade measures as a way to boost industry and employment. On the other hand, it reduced personal and corporate taxes and it deregulated to the utmost degree possible. It was a kind of 'walled' laisser-faire that seemed to work until Covid-19 hit. Real household income in the U.S. increased $4,379 in 2019 over 2018. It was "more income growth in one year than in the 8 years of Obama-Biden." And during Trump's time, the lowest paid workers started not to just be making gains, but making gains faster than the wealthy. "Low-wage workers are getting bigger raises than bosses" ran a CBS News headline .

Rubin seems to view tax cuts and deregulation as another giveaway to large corporations. But these large corporations are just fine with high taxation, since they have a choice as to when and where they get taxed. Regulation is also more of a tool than a burden for them. It's a very expedient means for eliminating competitors and competition, a useful barrier to entry for any upstart innovator that would upend the industry they are in. Besides, if high taxation and regulation were a kind of antidote to globalization, then France would be in a much better shape than it appears to be. But France seems to be doing worse than anybody else. In the aforementioned poll about if their "children will be better off financially than they themselves are" France was at the bottom in the group of countries that Rubin cited. The recent events with the yellow-vests movement indicate a very deep dissatisfaction and pessimism of its middle and working class.

Moreover, there does not seem to be much hostility or even much contention between government bureaucracies and the upper echelons of the corporate world. Something that Rubin's politics and economics would necessitate. And cultural and political like-mindedness between government bureaucracies and the managerial class of large corporations is not just limited to the mutual embrace of woke politics. It seems that there is a cross pollination of a much broader set of ideas and habits between bureaucrats and the managerial class. For instance, Erixon notes that "[c]orporate managers shy away from uncertainty but turn companies into bureaucratic entities free from entrepreneurial habits. They strive to make capitalism predictable." Striving for predictability is a very bureaucratic state of mind.

In Rubin's book, missed trends like that make his perspective to feel a bit dated. There is still valuable information in The Expendables . Rubin does know a lot about international trade deals. For instance, a point that is often ignored in the press about international trade agreements is that "[i]f you're designated a "developing" country, you get to protect your own industries with tariffs that are a multiple of those that developed economies are allowed to use to protect their workers." A rule that China exploits to the utmost.

Meanwhile, Apple, after its apparent lawsuit loss on the case with its employees in California, now seems committed to another fight with the expendables of another locale. The Washington Post reported that "Apple lobbyists are trying to weaken a bill aimed at preventing forced labor in China, according to two congressional staffers familiar with the matter, highlighting the clash between its business imperatives and its official stance on human rights." "The bill aims to end the use of forced Uighur labor in the Xinjiang region of China ." The war against the expendables never ends.

Napoleon Linarthatos is a writer based in New York.

[Nov 17, 2020] A short note of class struggle

Nov 17, 2020 | www.nakedcapitalism.com

hunkerdown , November 16, 2020 at 10:29 am

Consider the structure of the term "common sense", which is just shared opinion. If there is no common sense, there will be no common action.

The problem with coming together is that the ruling class divides and rules us as a normal procedure of creating a class system. Nobody in the ruling class has a problem with this. Their purpose in life is to reproduce the system of mass slavery and adapt it to present conditions and they, being among the elect, are fine with this.

Pat , November 16, 2020 at 9:48 am

Cognitive dissonance is a daily occurrence for anyone paying attention. And our struggling "leaders" are largely struggling over territory while ignoring the state of the nation.

True national emergencies are ignored as they are inconvenient, or more honestly buried under the rug, because they might mean our sociopaths at the top of the food chain would have to pony up some of their Ill gotten gains to the social good AND lose some of their leverage over modern serfs. And unlike "war" and "military intervention" which have been monetized to the nth degree, pandemic response has been bungled not only because the social systems have been shredded but because factions are fighting over response in order to find a way to strip as much public money from it as possible.

We make black jokes here about brunch, but the election of Biden is NOT about him, it is a probably a vain attempt to put the genie back in the bottle. The sad thing is that instead of pretending to be the adults in the room, the usual suspects kept up their four year long tantrum, instead of letting the process play out and talking about how our system works, it was all "he isn't giving up, he is being mean." All because it slightly delayed them reestablishing their rice bowls. And so ends the "bring us together" meme with nary a whimper.

I wish there was a chance our national leaders would get their heads out of the pockets of their donors long enough to notice that the foundation THEY depend on for their corrupt lifestyles had been destroyed. I wish our foundations had not been so corrupted that even one part remains strong.

I am not entirely pessimistic. The kids are largely alright. I just hope we can hold it together long enough to give them a chance.

David , November 16, 2020 at 11:30 am

Two slightly different things here, perhaps.
I think it's generally accepted that all societies need a common frame of reference against which you can have discussions and arguments, make and critique policy and try to interpret the world. This doesn't mean that everybody agrees, or still less that everybody is obliged to, but rather that everybody agrees about what the issues are and about the ground over which they may disagree. Back in the days of the Cold War, for example, there were furious debates about politics, not to mention wars, atrocities and dictatorships, but pretty much everybody agreed what the issues were, even if they were on different sides of them. Historically, this was very much the norm: the religious wars of Europe, or the wars of the French Revolution were between people with very different views, but who agreed on the underlying context. What we have now, is what the philosopher Alasdair McIntyre called "incommensurability": a jaw-breaking term which means, essentially, that people don't even begin from the same assumptions, and so are condemned to talk past each other. This accounts for a lot of the cognitive dissonance. In the case of Brexit, for example, much of the bitterness and confusion arose from the fact that Leavers and Remainers were simply talking about different things, and starting from different assumptions, but didn't realise it. The same applies, obviously to the whole TDS story. As a result, Joe Public is now faced with the need to choose between competing and mutually exclusive interpretations of events, or even whether events have actually occurred. It's hardly surprising there's so much confusion and stress.

It's made worse by the kind of thing Thuto mentions. One of the least helpful ideas to emerge from the 1960s was that children should be "left to find their own way", rather than being taught things. But children mature by testing their ideas against the norms and structures of society, and indeed their parents, and coming to some sort of personal vision of the world. A lot of modern politics (and practically all of IdiotPol) is the result of middle-class educated people who were never contradicted as children, and are still looking to shock and provoke twenty or thirty years later. Once you understand that much of the political and media system is made of people who are basically adolescents ("why does it have to make sense? Tell me why it has to make sense!) the chaos and stress become easier to understand.

Sound of the Suburbs , November 16, 2020 at 1:00 pm

This is what we should expect.
Western liberalism's descent into chaos.
1920s/2000s – neoclassical economics, high inequality, high banker pay, low regulation, low taxes for the wealthy, robber barons (CEOs), reckless bankers, globalisation phase
1929/2008 – Wall Street crash
1930s/2010s – Global recession, currency wars, trade wars, austerity, rising nationalism and extremism
1940s – World war.

Right wing populist leaders are what we should expect at this stage in the descent into chaos.

Why is Western liberalism always such a disaster?
They did try and learn from past mistakes to create a new liberalism (neoliberalism), but the Mont Pelerin Society went round in a circle and got back to pretty much where they started.

It equates making money with creating wealth and people try and make money in the easiest way possible, which doesn't actually create any wealth.
In 1984, for the first time in American history, "unearned" income exceeded "earned" income.
The American have lost sight of what real wealth creation is, and are just focussed on making money.
You might as well do that in the easiest way possible.
It looks like a parasitic rentier capitalism because that is what it is.

Bankers make the most money when they are driving your economy into a financial crisis.
What they are doing is really an illusion; they are just pulling future spending power into today.
The 1920s roared at the expense of an impoverished 1930s.
Japan roared on the money creation of real estate lending in the 1980s, they spent the next 30 years repaying the debt they had built up in the 1980s and the economy flat-lined.
https://www.youtube.com/watch?v=8YTyJzmiHGk

Bankers use bank credit to pump up asset prices, which doesn't actually create any wealth.
The money creation of bank credit flows into the economy making it boom, but you are heading towards a financial crisis and claims on future prosperity are building up in the financial system.
https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf
Early success comes at the expense of an impoverished future.

Things haven't been the same since 2008.
Early success came at the expense of an impoverished future.
https://www.youtube.com/watch?v=vAStZJCKmbU&list=PLmtuEaMvhDZZQLxg24CAiFgZYldtoCR-R&index=6
At 18 mins.
The money creation of bank credit flowed into the economy before 2008 making it boom, but they were heading towards a financial crisis and claims on future prosperity were building up in the financial system.
It's repayment time.

Sound of the Suburbs , November 16, 2020 at 1:01 pm

Let's get the basics sorted.
When no one knows what real wealth creation is, you are in trouble.

We want economic success
Step one – Identify where wealth creation occurs in the economy.
Houston, we have a problem.

Economists do identify where real wealth creation in the economy occurs, but this is a most inconvenient truth as it reveals many at the top don't actually create any wealth.
This is the problem.
Much of their money comes from wealth extraction rather than wealth creation, and they need to get everyone thoroughly confused so we don't realise what they are really up to.

The Classical Economists had a quick look around and noticed the aristocracy were maintained in luxury and leisure by the hard work of everyone else.
They haven't done anything economically productive for centuries, they couldn't miss it.
The Classical economist, Adam Smith:
"The labour and time of the poor is in civilised countries sacrificed to the maintaining of the rich in ease and luxury. The Landlord is maintained in idleness and luxury by the labour of his tenants. The moneyed man is supported by his extractions from the industrious merchant and the needy who are obliged to support him in ease by a return for the use of his money."
There was no benefits system in those days, and if those at the bottom didn't work they died.
They had to earn money to live.

Ricardo was an expert on the small state, unregulated capitalism he observed in the world around him. He was part of the new capitalist class, and the old landowning class were a huge problem with their rents that had to be paid both directly and through wages.
"The interest of the landlords is always opposed to the interest of every other class in the community" Ricardo 1815 / Classical Economist.
They soon identified the constructive "earned" income and the parasitic "unearned" income.
This disappeared in neoclassical economics.

GDP was invented after they used neoclassical economics last time.
In the 1920s, the economy roared, the stock market soared and nearly everyone had been making lots of money.
In the 1930s, they were wondering what the hell had just happened as everything had appeared to be going so well in the 1920s and then it all just fell apart.
They needed a better measure to see what was really going on in the economy and came up with GDP.
In the 1930s, they pondered over where all that wealth had gone to in 1929 and realised inflating asset prices doesn't create real wealth, they came up with the GDP measure to track real wealth creation in the economy.
The transfer of existing assets, like stocks and real estate, doesn't create real wealth and therefore does not add to GDP. The real wealth creation in the economy is measured by GDP.
Real wealth creation involves real work producing new goods and services in the economy.

So all that transferring existing financial assets around doesn't create wealth?
No it doesn't, and now you are ready to start thinking about what is really going on there.

GlassHammer , November 16, 2020 at 2:08 pm

"Much of their money comes from wealth extraction rather than wealth creation, and they need to get everyone thoroughly confused so we don't realise what they are really up to."

And this is why the quintessential business model in the U.S (at least since the 1970s) has been the multi-level marketing scheme.

[Nov 07, 2020] .It's a class-war people, recognize it for such.

Nov 07, 2020 | www.moonofalabama.org

donten , Nov 5 2020 23:33 utc | 178

The amount of cerebral activity wasted here is, well, wasted...It's a class-war people, recognize it for such. The U.S. needs to fall down among the weeds, and fertilize what's coming...The libertarian impulse must be squashed until it is unrecognizable!!

Equality, Fraternity, and Liberty in that order, my friends. All else is sickness in the mind.

[Oct 30, 2020] Tsunami Of Empty College Dorms Risks Student Housing Market Implosion

Did not most collages behaved like bandits raising tuition fees from 1980 till 2020. That's 40 years.
Oct 30, 2020 | www.zerohedge.com

Fall enrollment has plunged , some colleges are shuttering operations, revenues across the entire higher education industry are collapsing, and the shift from physical to virtual education due to the virus pandemic could prick the next bubble: the student housing debt market.

Our warning about the coming implosion of the higher education industry (see here from 2014) , as a whole, has become louder and louder over the last six-plus years as the student debt bubble has recently swelled to more than $1.6 trillion. Years ago, no one at the time, could've forecasted a virus pandemic would doom colleges and universities.

Credit rating agency Moody's recently downgraded the entire higher education sector to negative from stable, and the American Council on Education estimates colleges and universities will experience a $23 billion decline in revenues over the next academic year.

Bloomberg outlines the increase of virtual education in a virus pandemic has resulted in an abundance of empty dorms at colleges and universities, creating a $14 billion headache for the student housing debt market.

"West Virginia State University, already hit with a 10% enrollment drop, plans to give money to a school foundation so it can meet its bond covenants for residence hall debt. A community college in Ohio is using part of a $1.5 million donation for a financially-strapped student housing project. And officials at New Jersey City University, which serves largely first-generation and lower-income students and has recorded years of deficits, are prepared to shore up a dorm there," Bloomberg said.

The squeeze on university finances comes as the National Student Clearinghouse Research Center warned about a 16% drop in first-year undergraduate students enrolled for the fall semester. This means new revenue streams are quickly drying up for overleveraged colleges and universities.

"The limiting factor is some of these schools themselves are facing uncertainty with many of their revenue streams," S&P Global Ratings analyst Amber Schafer said in an interview. "It's a matter of not only willingness, but if they're able to support the project."

"Typically, privatized student housing debt is paid off by the revenue generated by the dorms -- meaning there's little recourse for bondholders if things go south," Bloomberg said. With occupancy rates already declining as coronavirus cases are surging, well, this could be bad news for colleges and universities heading into 2021.

"Borrowers have begun revealing how empty residence halls are as the pandemic spurs many campuses to keep classes online. According to the school foundation that sold the debt, West Virginia State University's dorm is 71% full, putting it about 20 percentage points from where it needs to be to satisfy debt covenants. Other privatized student housing projects, like two on Howard University's campus, are virtually empty due to online-only instruction there," Bloomberg said.

https://lockerdome.com/lad/13084989113709670?pubid=ld-dfp-ad-13084989113709670-0&pubo=https%3A%2F%2Fwww.zerohedge.com&rid=www.zerohedge.com&width=890

Bloomberg warns: "Privatized dorms are struggling the most given that they weren't structured to withstand 20% to 30% drops in occupancy -- or no students at all."

"West Virginia State University may have to step in to help student housing bonds at risk of violating a debt service coverage ratio, Moody's warned this month. The historically-black college faces "considerable" challenges in backstopping the bonds, Moody's said.

The nearly 290-bed residence hall with rents of $3,881 per semester was just 71% occupied this fall, while it needed to be about 92% occupied, said Patricia Schumann, president of the university foundation that sold the debt. Schumann said the university is projected to provide a $75,000 payment in January. In the meantime, she said the school was working to bolster its financial position and boost recruitment and donations.

"We're not standing still," she said.

Ohio's Terra State Community College, which has more than 2,100 students, was downgraded deeper into junk over the risk posed by a dorm owned by a nonprofit, given that the school "appears to provide an unconditional guarantee" to meet the debt obligations, Moody's said. The project was financed through a bank note.

The dorm's occupancy fell to 62%, and the college is using a previously-received donation to cover a shortfall in project revenue amounting between $500,000 to $600,000, the ratings company said in a report this month.

At New Jersey City University, a student housing project financed though a separate entity will likely miss a required debt service coverage ratio. The public school having to step in to help the bonds would be a challenge, but a surmountable one, said Jodi Bailey, the university's associate vice president for student affairs. The student housing bonds aren't a debt of the university, so the school would be choosing to provide financial support, according to bond documents .

The school is working to cut expenses related to the dorm. "Is it a harder year? Most definitely," she said.

The student housing bonds, issued by West Campus Housing LLC in 2015, were slashed deeper into junk in September by S&P, which said in a report that residence halls' occupancy there had fallen to 56% so the school could accommodate social-distancing guidelines," said Bloomberg.

To summarize, plunging enrollments, resulting in falling occupancy rates for dorms, is a debt bomb waiting to go off for many overleveraged colleges and universities that are panicking at the moment to divert enough funds to service debts, as the usual revenue streams, that being rent checks from students, are nowhere to be found as virtual learning keeps young adults in their parents' basements and out of dorms.

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If occupancy rates continue to slide through 2021, then we must revisit what we said months before the virus pandemic began in the US:

"...20% of colleges and universities will shut down or merge in the next ten years , and probably more."

Absent of a federal bailout, things could get ugly for colleges and universities in 2021.

[Sep 26, 2020] The Stockdale Paradox

Notable quotes:
"... You must never confuse faith that you will prevail in the end -- which you can never afford to lose -- with the discipline to confront the most brutal facts of your current reality, whatever they might be. ..."
Sep 26, 2020 | www.zerohedge.com

grug-cave-head , 2 hours ago

Let me post something.

The Stockdale Paradox[ edit ]

James C. Collins related a conversation he had with Stockdale regarding his coping strategy during his period in the Vietnamese POW camp. [21] [ non-primary source needed ] When Collins asked which prisoners didn't make it out of Vietnam, Stockdale replied:

Oh, that's easy, the optimists. Oh, they were the ones who said, 'We're going to be out by Christmas.' And Christmas would come, and Christmas would go. Then they'd say, 'We're going to be out by Easter.' And Easter would come, and Easter would go. And then Thanksgiving, and then it would be Christmas again. And they died of a broken heart. This is a very important lesson.

You must never confuse faith that you will prevail in the end -- which you can never afford to lose -- with the discipline to confront the most brutal facts of your current reality, whatever they might be. [22]

Collins called this the Stockdale Paradox. [21]

[Aug 29, 2020] Endurance- Shackleton's Incredible Voyage, Lansing, Alfred, eBook - Amazon.com

Aug 29, 2020 | www.amazon.com

The harrowing tale of British explorer Ernest Shackleton's 1914 attempt to reach the South Pole, one of the greatest adventure stories of the modern age.

In August 1914, polar explorer Ernest Shackleton boarded the Endurance and set sail for Antarctica, where he planned to cross the last uncharted continent on foot. In January 1915, after battling its way through a thousand miles of pack ice and only a day's sail short of its destination, the Endurance became locked in an island of ice. Thus began the legendary ordeal of Shackleton and his crew of twenty-seven men. When their ship was finally crushed between two ice floes, they attempted a near-impossible journey over 850 miles of the South Atlantic's heaviest seas to the closest outpost of civilization.

In Endurance , the definitive account of Ernest Shackleton's fateful trip, Alfred Lansing brilliantly narrates the harrowing and miraculous voyage that has defined heroism for the modern age.

>


Bama Fan

The book gave me several adrenaline rushes...it's that well written.

5.0 out of 5 stars The book gave me several adrenaline rushes...it's that well written. Reviewed in the United States on December 27, 2018 Verified Purchase This is an amazing account of Shackleton's journey that went into intricate details about the twists and turns every step of the way for this small group of brave explorers. It reads like a thrilling fiction novel, but the fact that it is non-fiction makes it even more astounding. The description really paints a true picture of the hellacious conditions that they continued to face time and time again. This book really put into perspective what a challenge truly is. A simple headache that we might get now is nowhere near getting your sleeping bag drenched and still having to sleep in it in temperatures near 0 when you don't know how the weather or current is going to change while you try to sleep. Great read and really hard to put down because even though you think you know what's going to happen, you still have to find out how. Would highly recommend if you're looking for a good book that you will have trouble putting down. 38 people found this helpful

Helpful Comment Report abuse >
Twostory
Cold

5.0 out of 5 stars Cold Reviewed in the United States on November 17, 2018 Verified Purchase Very cold. Always cold. This is a very detailed (true) story about men trying to survive in a very hostile environment in c. 1915. Stark and full of detail, the reader almost gets to feel the cold, hunger and pain the crew experienced while trying to survive Antarctica and return to civilization. it's amazing that anyone survived this ordeal let alone all of them. Sadly, many creatures and peaceful animals paid the price for mans survival. The details often are so descriptive and redundant due to the scope of the story, that it sometimes becomes repetitive and familiar. This is because of the constant distress and horrible conditions the crew experienced for such a long time. It's a well documented and exciting story with a bit of a history lesson that really held my interest. It's a popular book that is deserving of its high ratings. 21 people found this helpful

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George E. Dawson
A REMARKABLE TALE OF SURVIVAL, SUPERBLY TOLD.

5.0 out of 5 stars A REMARKABLE TALE OF SURVIVAL, SUPERBLY TOLD. Reviewed in the United States on September 16, 2017 Verified Purchase "There can be little doubt that Shackleton, in his way, was an extraordinary leader of men." (p. 11).

There is no doubt in my mind that I would not be able to endure even one, the best, day of the unimaginable hardships that the men of the Imperial Trans-Antarctic Exposition (1914-17) -- under the leadership of Sir Ernest Shackleton -- struggled with for more than 400 days. They endured and survived some of the most incredible, unbelievable, conditions ever experienced; and Alfred Lansing captures the urgency, the deprivation, and the desperation, with spellbinding storytelling.

Recommendation: Best adventure story, ever. Should be read by all, especially those of high school age.

"In all the world there is no desolation more complete than the polar night. It is a return to the Ice Age -- no warmth, no life, no movement." (p. 46).

Basic Books. Kindle Edition, 268 pages. 16 people found this helpful

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Dataman
A Riveting True Story of Adventure, Survival and Hope

5.0 out of 5 stars A Riveting True Story of Adventure, Survival and Hope Reviewed in the United States on September 25, 2014 Verified Purchase In 1914 Sir Ernest Shackleton set out on an expedition to make the first land crossing of the barren Antarctic continent from the east to the west coast. The expedition failed to accomplish its objective, but became recognized instead as an amazing feat of endurance. Shackleton and a crew of 27 (plus one stowaway) first headed to the Weddell Sea on the ship Endurance. Their ship was trapped by pack ice short of their destination and eventually crushed. Forced to abandon ship, the men were trapped on ice floes for months while they drifted north. Once they were far enough north that the ice thinned somewhat, they were forced to journey in lifeboats they'd dragged off the ship. After six terrible days, they made it to uninhabited Elephant Island; from there Shackleton and five other men set off in an open 22-foot boat on an incredible 800-mile voyage across the notoriously tempestuous Drake Passage to South Georgia Island, where they hiked across the island's mountain range to reach a whaling camp. From there, they returned in a ship to rescue the men left behind on Elephant Island.

That these men were able to survive in the harsh, barren conditions of Antarctica, where temperatures frequently fell below zero is amazing. It's nearly unimaginable that these men could survive for almost two years, their lives marked by a seemingly endless stretch of misery, suffering, and boredom, not to mention the threat of starvation. At every turn, their situation seems to go from bad to worse. If this were a work of fiction, one would be inclined to claim the story was simply too far-fetched. But Endurance isn't just a tale of misery, it is a vivid description of their journey, the dangers they faced, and the obstacles they overcame. Through all of this, Shackleton has never lost a man.

Alfred Lansing's book, written in 1958 from interviews and journals of the survivors, is now back in print. It's a riveting tale of adventure, survival and hope. It is also a rare historical, non-fiction book that is as exciting as any novel. I've read a number of stories of survival and would rate this as the best of all I have read. This is one of the great adventure stories of our time. Don't miss it. Read more 45 people found this helpful

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Sam
I recommend this book to add to the collection of those ...

5.0 out of 5 stars I recommend this book to add to the collection of those ... Reviewed in the United States on August 7, 2015 Verified Purchase What a page turner. Lansing is a master for the description of those explorers hardships, desire to follow Shacketon' orders. I kept saying to myself that there are few humans today that are as tough as those men. I recommend this book to add to the collection of those books that give us the knowledge of what it takes to conquer a goal. 51 people found this helpful

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S. Cherkas
By far one of the best books I've ever read, & I've read many!

5.0 out of 5 stars By far one of the best books I've ever read, & I've read many! Reviewed in the United States on January 30, 2019 Verified Purchase I just finished reading 2 of Grann's books - Lost City of Z & The White Darkness. The latter is the story of Henry Worsley, the grandson of Frank Worsley one of the "extraordinary" men in Lansing's Endurance. Grann suggested Endurance as a worthy read. Sir Earnest Shackleton & Frank Worsley were two of some 20 men who incredibly survived a journey to Antarctica that went awry from almost its onset. Two years later all hands were rescued through the extraordinary will of the men who found themselves at the mercy of the elements. Lansing's research & grasp of the situation in which these men found themselves in conjunction with his writing style has put this book at the top of my all time favorites! Fabulous! Fabulous! Anyone 12 or older will be blown away by this true story & this writer! 4 people found this helpful

[Aug 24, 2020] The link between political instability and inequality

Aug 24, 2020 | peakoilbarrel.com

Schinzy Ignored says: 08/16/2020 AT 9:21 AM

Modelling political instability is the subject of cliodynamcs, see https://en.wikipedia.org/wiki/Cliodynamics . The graph on that page seems to link political instability with inequality. My suspicion is that it is also linked to scarcity.

[Aug 01, 2020] Black Lives Matter- An Immodest Suggestion -

Aug 01, 2020 | www.zerohedge.com

Authored by MN Gordon via EconomicPrism.com,

Where will America's productivity miracle come from?

Public education is not teaching students what they need to know to compete in the global economy.

According to the National Center for Education Statistics, math scores of U.S. students rank 30th in the world. The East Asian peers of today's American students will eat their lunch in the growth industries of tomorrow.

Here's where Black Lives Matter has a real opportunity.

The protests. The riots. The calls for reparation payments. Social justice wealth transfers. White privilege taxes. All the nonsense. Where's the strategy? Where's the long-range 'strategery'?

No doubt, those selling BLM T-shirts in Walmart parking lots are exercising gumption. But it's not gonna cut it. Moreover, like bingo winnings, reparation payments will be quickly squandered while the unhappiness remains.

And as far as we can tell the BLM movement is empty of ideas and without direction.

lay_arrow

chubbar , 14 minutes ago

"If BLM was strategic"?????? Holy ****, if they were strategic they'd be making damn sure that testing, like SAT scores, were no longer accepted as proof of accomplishment or learning. Oh, wait?.......

Let's all agree, blacks don't want a "head to head" test, EVER.

I don't give a crap what they say, they don't want to be judged on MERIT, they love the skin color test. That way they can always claim racism instead of ability.

libtears , 40 minutes ago

The BLM Movement is definitely empty of ideas and clear leadership. Their supposed goals are all over the map from day to day. They are rudderless mobs of filthy vagrants and criminal elements make up most of their movement.

What's going on which is credited to BLM has nothing to do with black people for the most part. Commies have co-opted this movement and are engaging in anarchy to take down the system of government. They will do whatever they want at all costs because they believe they have the moral high ground. They are radicals just like people call them.

The best thing that could happen is for these loser mayors and governors to enforce the law against these mobs of filthy scum.

How can you even reason with a mob of idiots that don't even have one, if not a hierarchy of leadership and clear goals that they agree upon?

These people are taking a page out of the Bolshevik book on revolution. And they're much weaker than the Bolsheviks, mentally and physically. One good thump on the head and these b!tches are crying.

The longer the public allows teaching institutions to promote BLM the worse this sh!t is going to get.

...

JaxPavan , 42 minutes ago

The Ford Foundation gave BLM $100 million to engage in terrorism. Who do you think bought all those ultra high end looting vehicles?

quanttech , 39 minutes ago

Indeed, the BLM organization is primarily funded by mostly white-run corporations and foundations. The money rules.

HopefulCynical , 22 minutes ago

And WHO is in control of the Ford Foundtion? WHO?!

[Jul 31, 2020] The Consequences of a Very High Level of Inequality Can Be Fatal

After some level inequality is akin to cancel -- it can destroy the society. In a countries with very high level of inequality the government can't rely on loyalty of people. It also leads to the proliferation of "guard labor" in one form or another.
Just think what it means for the USA counterintelligence now. Add to this the collapse of the neoliberal ideology which also does not help to instill the loyalty.
Jul 31, 2020 | www.nakedcapitalism.com
The Consequences of Inequality Can Be Fatal Posted on July 30, 2020 by Yves Smith

Yves here. So many of health costs of inequality are obvious, yet most people seem trained to look past them. And Congress fiddles about a new stimulus package, with the odds of getting it back on track soon not looking very good, while Americans have rent and mortgage payments looming.

By Richard D. Wolff, professor of economics emeritus at the University of Massachusetts, Amherst, and a visiting professor in the Graduate Program in International Affairs of the New School University, in New York. Wolff's weekly show, "Economic Update," is syndicated by more than 100 radio stations and goes to 55 million TV receivers via Free Speech TV. His two recent books with Democracy at Work are Understanding Marxism and Understanding Socialism , both available at democracyatwork.info . Produced by Economy for All , a project of the Independent Media Institute

Capitalism, as Thomas Piketty's Capital in the Twenty-First Century shows, relentlessly worsens wealth and income inequalities. That inherent tendency is only occasionally stopped or reversed when masses of people rise up against it. That happened, for example, in western Europe and the U.S. during the 1930s Great Depression. It prompted social democracy in Europe and the New Deal in the United States. So far in capitalism's history, however, stoppages or reversals around the world proved temporary. The last half-century witnessed a neoliberal reaction that rolled back both European social democracy and the New Deal. Capitalism has always managed to resume its tendential movement toward greater inequality.

Among the consequences of a system with such a tendency, many are awful. We are living through one now as the COVID-19 pandemic, inadequately contained by the U.S. system, savages Americans of middle and lower incomes and wealth markedly more than the rich.

The rich buy better health care and diets, second homes away from crowded cities, better connections to get government bailouts, and so on. Many of the poor are homeless. Tasteless advice to "shelter at home" is, for them, absurd. Low-income people are often crowded into the kinds of dense housing and dense working conditions that facilitate infection. Poor residents of low-cost nursing homes die disproportionally, as do prison inmates (mostly poor). Pandemic capitalism distributes death in inverse proportion to wealth and income.

Social distancing has destroyed especially low-wage service sector jobs. Rarely did top executives lose their positions, and when they did, they found others. The result is a widened gap between high salaries for some and low or no wages for many. Unemployment invites employers to lower wages for the still employed because they can. Pandemic capitalism has provoked a massive increase in money-creation by central banks. That money fuels rising stock markets and thereby enriches the rich who own most shares. The coincidence of rising stock markets and mass unemployment plus falling wages only adds momentum to worsening inequality.

Unequal economic distributions (of income and wealth) finance unequal political outcomes. Whenever a small minority enjoys concentrated wealth within a society committed to universal suffrage, the rich quickly understand their vulnerability. The non-wealthy majority can use universal suffrage to prevail politically. The majority's political power could then undo the results of the economy including its unequal distribution of income and wealth. The rich corrupt politics with their money to prevent exactly that outcome. Capitalists spend part of their wealth to preserve (and enlarge) all of their wealth.

The rich and those eager to join them in the U.S. dominate within both Republican and Democratic parties. The rich provide most of the donations that sustain candidates and parties, the funding for armies of lobbyists "advising" legislators, the bribes, and many issue-oriented public campaigns. The laws and regulations that flow from Washington, states, and cities reflect the needs and desires of the rich far more than those of the rest of us. The peculiar structure of U.S. property taxes offers an example. In the U.S., property is divided into two kinds: tangible and intangible. Tangible property includes land, buildings, business inventories, automobiles, etc. Intangible property is mostly stocks and bonds. Rich people hold most of their wealth in the form of intangible property. It is thus remarkable that in the U.S., only tangible property is subject to property tax. Intangible property is not subject to any property tax.

The kinds of property (tangible) that many people own get taxed, but the kinds of property (intangible) mostly owned by the richest minority do not get taxed. If you own a house rented to tenants, you pay a property tax to the municipality where the house is located. You also pay an income tax on the received rents to the federal government and likely also the state government where you live. You are thus taxed twice: once on the value of the property you own and once on the income you derive from that property. If you sell a $100,000 house and then buy $100,000 worth of shares, you will owe no property taxes to any level of government in the United States. You will only owe income tax on dividends paid to you on the shares you own. The form of property you own determines whether you pay property tax or not.

This property tax system is excellent for those rich enough to buy significant amounts of shares. The rich used their wealth to get tax laws written that way for them. The rest of us pay more in taxes because the rich pay less. Because the rich save money -- since their intangible property is not taxed -- they have that much more to buy the politicians who secure such a tax system for them. And that tax system worsens inequality of wealth and income.

Unequal economic distributions finance unequal cultural outcomes. For example, the goal of a unifying, democratizing public school system has always been subverted by economic inequality. In general (with few exceptions), the better schools cost more to attend. The tutors needed to help struggling students are affordable for the rich but less so for everyone else. The children of the wealthy get the private schools, books, quiet rooms, computers, educational trips, extra art and music lessons, and virtually everything else needed for higher educational achievement.

Unequal economic distributions finance unequal "natural" outcomes. The U.S. now displays two differently priced foods. Rich people can afford "organic" while the rest of us worry but still buy "conventional" food for budget reasons. Countless studies indicate the dangers of herbicides, pesticides, chemical fertilizers, food processing methods, and additives. Nonetheless, the two-price food system delivers the better, safer food more to the rich than to everyone else. Likewise, the rich buy the safer automobiles, more safely equip their homes, and clean and filter the water they drink and the air they breathe. No wonder the rich live years longer on average than other people. Inequality is often fatal, not just during pandemics.

In ancient Greece, Plato and Aristotle worried about and discussed the threat to community, to social cohesion, posed by inequalities of wealth and income. They criticized markets as institutions because, in their view, markets facilitated and aggravated income and wealth inequalities. But modern capitalism sanctifies markets and has thus conveniently forgotten Plato's and Aristotle's cautions and warnings about markets and inequality.

The thousands of years since Plato and Aristotle have seen countless critiques, reforms, and revolutions directed against wealth and income inequalities. They have rarely succeeded and have even more rarely persisted. Pessimists have responded, as the Bible does, with the notion that "the poor shall always be with us." We rather ask the question: Why did so many heroic efforts at equality fail?

The answer concerns the economic system, and how it organizes the people who work to produce and distribute the goods and services societies depend on. If its economic organization splits participants into a small rich minority and a large non-rich majority, the former will likely be determined to reproduce that organization over time. Slavery (master versus slave) did; feudalism (lord versus serf) did; and capitalism (employer versus employee) does. Inequality in the economy is a root cause contributing to society-wide inequalities.

We might then infer that an alternative economic system based on a democratically organized community producing goods and services -- not split into a dominant minority and a subordinate majority -- might finally end social inequality.


Ignacio , July 30, 2020 at 10:16 am

Wow! I just can say this is very well pointed and that It must be understood we cannot expect empathy from the well off. Even if some are empathic by nature they just cannot see what's really happening given how wide is the rift.

rob , July 30, 2020 at 10:39 am

inequality is a state of nature. blame god .right.
but here in this humanistic creation, we ought not institutionalize inequality.
That is one of the big points of monetary reform.
The current federal reserve system and the banking system ,having control of the "money creation" of this country, PROMOTES wealth inequality.
The nationalization of the fed, and the ending of banks creating money; is the main essence of monetary reform. The people who have been trying to discuss the world with a different ,more equal access to the fiat created "for the people to use, for the economy to function",point to the growth of inequality by the nature of how the system currently is structured. They point to how our money is created and by whom.They point to who gets "the debt"
Some people try to dismiss the 100 year history of the fed promoting inequality as a bug . but how can someone not see it is a feature, The monetary system we have now was created by an act of law. It would be unconstitutional ,if not for the federal reserve act. Allowing the banks to create money.Instead of the congress..as the constitution explicitly stated.
But now, we are no longer a fledgling republic.
The world accepted our fiat, as created by bankers now we ought to create our own money and retire our national debt.Heal ourselves, to lead forward in the future. Time to write a new law .
https://www.congress.gov/bill/112-thcongress/house-bill/2990/text

Anonymous , July 30, 2020 at 10:53 am

Pessimists have responded, as the Bible does, with the notion that "the poor shall always be with us."

The Bible does not say that, it says:

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 [bold added]

But just a few verses later:

For the poor will never cease to be in the land ; therefore I command you, saying, 'You shall freely open your hand to your brother, to your needy and poor in your land.' Deuteronomy 15:11 [bold added]

Taken together, these verses are not about the inevitability of poverty but the inevitability of poverty from DISOBEDIENCE to what is being commanded – especially, i suppose, wrt economic justice.

So though we might never completely eliminate poverty, it can certainly be reduced to the extent we are willing to obey – per the Bible.

And as anyone who has read the Old Testament should know, the US is far from obedience wrt economic justice (e.g. Deuteronomy 23:19-20, e.g. Leviticus 25).

Alternate Delegate , July 30, 2020 at 3:39 pm

Yes the Bible most certainly does say that.

Mark 14:7 For ye have the poor with you always, and whensoever ye will ye may do them good: but me ye have not always.

Matthew 26:11 For ye have the poor always with you; but me ye have not always.

Anonymous , July 30, 2020 at 4:43 pm

Those statements are indictments of injustice, not excuses for poverty (cf. Deuteronomy 15:4).

TomDority , July 30, 2020 at 1:27 pm

"If you own a house rented to tenants, you pay a property tax to the municipality where the house is located."
the above means that you are already up the income ladder enough to not qualify as being low income _ most of the country is low income since the word Low is comparative – it is comparative to the cost of living –
So the above property tax is paid by the tenant – the carry costs by the tenant and the profit – by the tenant.
So the rent is a high cost of living due to the bidding up or asset inflation that most "investment goes into today"
A key way to reduce inequality is through a tax system that penalizes activities that tend to raise the cost of living – tax heavier the investments that inflate asset prices (assets are things already created).
Taxing something is to put a burden upon an activity
Why we tax labor so much – who knows

Michael Fiorillo , July 30, 2020 at 4:43 pm

The Great Depression of the 1930's prompted social democracy in Europe?

The professor skipped an episode or two there, no?

Susan the other , July 30, 2020 at 2:59 pm

When it comes to the value of money everything is skewed. If Picketty were analyzing money as merely a medium of exchange and not a store of wealth he'd have much less inequity. When the value of money is considered in on-the-ground finance operations "lost opportunity" is considered into the interest rate. Lost opportunity is totally ignored on a human level. You'd think that money itself was a person.

[Jul 30, 2020] Building an Inclusive Post-Pandemic American Workforce by Michele Steeb Michele Steeb

Jul 30, 2020 | www.theamericanconservative.com

>

ll eyes are on the declining number of unemployed. The May and June jobs reports chronicle the reabsorption of 5.3 million who lost their jobs in the COVID-19 pandemic. Twelve million jobs to go to reach pre-pandemic employment.

Yet prior to the pandemic, there were 18 million Americans missing from the economy. These persons were neither employed nor seeking employment -- nor retirees, students or in-home caregivers -- and therefore were excluded from the Bureau of Labor Statistics count of the workforce. In order that America emerge from the pandemic stronger than before, a concerted initiative by federal and state governments to move them back into the economy -- using existing resources -- must begin now.

...

Research on the social determinants of health finds that employment has a very strong correlation with positive health outcomes. To exist as a non-participant in the economy is thus an invitation to dire health outcomes including premature death.

What's more, these individuals are needed as contributors to our national commonweal, fueling increased economic and social progress. And people engaged in productive activities are much less likely to engage in negative and destructive behaviors.

... The USDA's food stamp program has a robustly funded, though underutilized, employment and training grant. States use the excuse of USDA's partial match requirement as a reason to opt out.

[Jul 14, 2020] To lose 263,000 hostages in less than one year would be a devastating blow to American diplomacy.

Jul 14, 2020 | www.moonofalabama.org

vk , Jul 13 2020 18:57 utc | 2

Funny how the visa-free map from before the COVID-19 pandemic is roughly equal to the extent of the American Empire itself.

And the loss of foreign students signifies much more than the mere loss of income for the American universities: it also means the loss of grip over the provinces' regional elites.

Most of the foreign students in the USA are sons and daughters of the regional elites. They live the American way of life, get westernized, and go back to their countries (which they will likely rule) with a liberal ideology ingrained in their minds. They are the rough equivalent to what the hostage was during Antiquity. To lose 263,000 hostages in less than one year would be a devastating blow to American diplomacy.

Peter AU1 , Jul 13 2020 19:09 utc | 4

vk

One commenter mentioned a brain drain in relation to foreign students no longer coming to America but I guess the brain drain will occur when out of work professors start heading off to other countries like China in search of work.

[Jul 09, 2020] Who belongs to working class and who to manageria class

I think the difference is owning of stock. If a person owns anough money to maintin the current standard of living without employment this person belong to upper middle class.
In this sense Steven Johnson comment are bunk.
Jul 09, 2020 | crookedtimber.org

Chetan Murthy 07.06.20 at 6:45 am (
48
)

likbez @ 39:

Without working class votes they can't win. And those votes are lost

It's helpful that you told us who you were, in so few words. The Dems didn't lose working-class votes in 2016: the median income of a Hillary voter was less than that of a Trump voter [or maybe it was average? In any case, not much difference.] What the Dems lost, was "white non-college-educated" voters. They retained working class voters of color.

But hey, they don't count as working-class voters to you. Thanks for playing.

MisterMr 07.06.20 at 8:21 am ( 49 )

Two points:

1) White collar are, by definition, working class, because they don't own the means of production. What I see is an opposition between blue collars and white collars, that are two wings of the working class, not that democrats are going against the working class.
For some reason, the main divide in politics today is a sort of culture war, and republicans and other right wing parties managed to present the traditionalist side of the culture war as the "working class" one, and therefore the other side as the evil cosmopolitan prosecco sipping faux leftish but in reality very snobbish one, so that they pretend that they are the working class party because of their traditionalist stance.
But they aren't: already the fact that they blame "cosmopolitans" shows that they think in terms of nationalism (like Trump and his China virus), which is a way to deflect the attention from class conflict.
So comparatively the Dems are still the working class party, and the fact that some working class guys vote for trump sows that they suffer from false consciousness, not that the Dems are too right wing (the dems ARE too right wing, but this isn't the reason some working class guys are voting Trump).

2) Neoliberalism and free markets are not the same thing, and furthermore neoliberalism and capitalism are not the same thing; at most neoliberalism is a form of unadultered capitalism. However since neoliberalism basically means "anti new deal", and new deal economies were still free market and still capitalist (we can call them social democratic, but in this sense social democracy is a form of controlled capitalism), it follows that the most economically succesful form of capitalism and free markets to date is not neoliberalism.

Orange Watch 07.06.20 at 5:40 pm (
59
)

Chetan Murthy@48:

It's helpful that you told us who you were, in so few words. 43% of the US are non-voters. The median household income of non-voters is less than half of the median income of a Clinton voter (which was higher than the overall US median, albeit by less than the Trump median was). Clinton didn't lose in 2016 because of who voted as much as who didn't ; every serious analysis (and countless centrist screeds) since Trump's installation has told us that. Losing the working class doesn't require that the Republicans gain them; if the working class drops out, that shifts the electoral playing field further into the favor of politics who cater to the remaining voting blocks. Democrats playing Republican-lite while mouthing pieties about how they're totally not the party of the rich will always fare worse in that field than Republicans playing Republicans while mouthing pieties about how they ARE the party of the rich, but also of giving everyone a chance to make themselves rich. I know it's been de rigour for both Dems and the GOP to ignore the first half of Clinton's deplorable quote, but it truly was just as important as the half both sides freely remember. The Democrats have become a party of C-suite diversity, and they have abandoned the working class. And when their best pick for President's plenty bold plan for solving police violence is to encourage LEOs to shoot people in the leg instead of the chest (something that could only be said by a grifter or someone with more knowledge of Hollywood than ballistics or anatomy), the prospect of keeping the non-white portions of the working class from continuing to drop out is looking bleak.

MisterMr@49:

The traditional threading of that needle is to expand class-based analysis to more accurately reflect real-world political and economic behavior. In the past (and in some countries who updated the applicable definitions, still), the most relevant additional class was the petty bourgeoisie; in the modern US, however, the concept of the professional-managerial class is the most useful frame of reference.

MisterMr 07.07.20 at 12:06 pm (
76
)

Orange Watch 59

"The traditional threading of that needle is to expand class-based analysis to more accurately reflect real-world political and economic behavior. In the past (and in some countries who updated the applicable definitions, still), the most relevant additional class was the petty bourgeoisie; in the modern US, however, the concept of the professional-managerial class is the most useful frame of reference."

Sure, but one has to adopt a logicwhen building "class" groups. One relrvant dimension is educational attainment, which is IMHO where the "professional-managerial" class comes from.
But, not everyone with a degree is a manager, and "professional" normally implies a level of income that is higher that that of an average rank and file white collar.

So the question is whether this "new class" is really managers, or just white collar workers who work in services instead than in industrial production.
Furthermore, as technology increases, it is natural that a larger share of people will work in services and a smaller share in industry, for the same reason that increased agricultural productivity means less agricultural jobs.

Orange Watch 07.08.20 at 11:01 pm (
105
)

steven t johnson@98:

There are a great many unstated assumptions baked into this comment, but I'll take a shot at a foundational one. You suggest PMC is a distinction without difference vis a vis middle class appears to suggest that you've bought into a commonly accepted "truth" that can't withstand close scrutiny, and your claim that economic status is not a useful distinguisher only further drives it home. What is the cutoff between middle class and rich? I've seen far too many well-educated idiots with professional degrees make ridiculous claims like $150k household income representing a solidly middle-class income. That's in the upper 15% of national incomes, but it's being called middle class. 240% of the national median household income, but it's "middle class". And to pre-empt cost-of-living arguments, it's 175% of the median household income in Manhattan. So when you say PMC is not a useful concept, and that income is not a useful class distinction, I need to ask you where you draw your lines, or if you're asserting that class has no economic aspect at all. If you're arguing that households in the upper quintile and bottom quintile don't have different concerns, outlooks, values, and lifestyles – that someone in either could be working class or middle class (but I assume not upper class? Arguments like what yours appears to be typically don't start the upper class anywhere below the 1% ) is hard to treat as serious. If that is an assertion you'd stand by, what that tells me is that you're using private definitions of working and middle class, and they're essentially unintelligible.

Gorgonzola Petrovna 07.09.20 at 10:13 am (
113
)

@MisterMr
White collar are, by definition, working class, because they don't own the means of production

That's not the definition. For example: despite not owning any means of production, lumpenproletariat is not part of the working class.

What I see is an opposition between blue collars and white collars, that are two wings of the working class

If this is the way you feel, that's fine. It is, however, a controversial view. An alternative (and quite convincing, imo) view is that "white collars" belong to the 'professional-managerial class', with entirely different interests.

Anyhow, a bourgeois democracy (aka 'dictatorship of the bourgeoisie') does not and can not represent interests of the working class; this is indeed "by definition". Any benefits encountered by the working class are coincidental.

And in the current circumstance, the struggle between the remains of domestic bourgeoisie and global finance capitalism, the former faction is definitely – obviously – better aligned with interests of the domestic working class.

Orange Watch 07.08.20 at 11:01 pm (no link)

steven t johnson@98:

There are a great many unstated assumptions baked into this comment, but I'll take a shot at a foundational one. You suggest PMC is a distinction without difference vis a vis middle class appears to suggest that you've bought into a commonly accepted "truth" that can't withstand close scrutiny, and your claim that economic status is not a useful distinguisher only further drives it home. What is the cutoff between middle class and rich? I've seen far too many well-educated idiots with professional degrees make ridiculous claims like $150k household income representing a solidly middle-class income. That's in the upper 15% of national incomes, but it's being called middle class. 240% of the national median household income, but it's "middle class". And to pre-empt cost-of-living arguments, it's 175% of the median household income in Manhattan. So when you say PMC is not a useful concept, and that income is not a useful class distinction, I need to ask you where you draw your lines, or if you're asserting that class has no economic aspect at all. If you're arguing that households in the upper quintile and bottom quintile don't have different concerns, outlooks, values, and lifestyles – that someone in either could be working class or middle class (but I assume not upper class? Arguments like what yours appears to be typically don't start the upper class anywhere below the 1% ) is hard to treat as serious. If that is an assertion you'd stand by, what that tells me is that you're using private definitions of working and middle class, and they're essentially unintelligible.

[Jul 04, 2020] Low-Income American Households Suffer Inflation Shock From Virus

Notable quotes:
"... "In a period of protest and increasing anger about inequality, the differential inflation rate experienced by low- and high-income households is a concern," said Bloomberg Economics' Björn van Roye and Tom Orlik. ..."
Jul 04, 2020 | www.bloomberg.com

The coronavirus is inflicting a price shock on low income Americans that risks further driving up inequality.

In a study released this week, Bloomberg Economics estimated higher grocery and housing costs for lockdown necessities meant those households whose incomes are in the bottom 10% currently face inflation of 1.5% compared with 1.0% for the top 10% and the official 0.1% overall average recorded in May.

Recalculating Inflation

'Have nots' suffered disproportionately as virus changed buying patterns

https://www.bloomberg.com

Sources: Bloomberg Economics, BLS, https://opportunityinsights.org

Note: Inflation for the lowest (highest) 10% takes the alternative CPI basket for the lowest (highest) decile of household income before taxes from the 2018 Consumer Expenditure Survey

The explanation for the difference lies in how the Covid-19 pandemic has changed consumption patterns by forcing households to buy more food while spending less on transportation or recreational activities.

"In a period of protest and increasing anger about inequality, the differential inflation rate experienced by low- and high-income households is a concern," said Bloomberg Economics' Björn van Roye and Tom Orlik.

The suggestion the virus is less disinflationary than many economists believe poses a challenge for the Federal Reserve which is eyeing a slower inflation rate than that experienced by lower earners, who are instead facing a steady erosion of their purchasing power.

"Taken together with concerns about central banks bailing out investors ahead of firms and workers, and the benefits rich, asset-owning households gain from quantitative easing, it adds to the sense that central banks are unintentional contributors to the problem of inequality," van Roye and Orlik said.

[Jul 03, 2020] Is math unjust and grounded in discrimination ? Sometimes I wonder if the world is some kind of sitcom for aliens

Notable quotes:
"... This lady is sitting there lying trying to prove a point. I have been in enough arguments to kow when someone is just arguing to keep the discussion going ..."
Jul 03, 2020 | www.youtube.com

John Smith , 7 months ago

Crazy lady: Math is discriminatory!

Mia Light , 8 months ago (edited)

Sometimes I wonder if the world is some kind of sitcom for aliens.

Johnny West , 7 months ago

Comprehending mathematics requires IQ ! Not equality. Lord, this woman lives in a rabbit hole.

Ruttigorn Logsdon , 7 months ago

And son that's how America became a third world country over night!

L0nN13 , 8 months ago

The bottom line is, they want to take away any problem solving skills that might build character, because someone might get hurt! Victimhood culture run amuck.

Sal Pacheco , 8 months ago

Mathematics is the cornerstone of all forms of trade, communications, home economics and every other aspect of life. Truth is they're dumbing everyone down to control populations!

Oprah and Michael Jordan are black billionaires , 4 days ago

As a black American, this is so ignorant and offensive to me

Jewel Heart , 7 months ago

The brilliant NASA mathematician Katherine Johnson just proves what a load of bx this latest rubbish is.

Mach 1 , 2 years ago

I have Master's Degree in Mechanical Engineering and I'm 62-years old. I have never once cared about the history of mathematics, other than a curiosity. Knowing the history of mathematics never helped me once to solve an ordinary second order differential equation.

Aric Lyles , 8 months ago

When a person lies while giving an interview they should be shocked or something. This lady is sitting there lying trying to prove a point. I have been in enough arguments to kow when someone is just arguing to keep the discussion going. She has already lost the argument deflected and differed responsibility when confronted with the legitimacy of the paper.

Go exercise healthy body makes a healthy mind not the other way around.

[Jul 01, 2020] The Sack Prof Priyamvada Gopal (the Cambridge Race Troll ) Petition is down

Cue bono? Not black people (actually she is an Indian, which until recently was a caste society). Is she a victim of "affirmative action" policy and occupies a position for which there are more worthy academically candidates. University is not sinecure, at least it should not be.
How good is she as an academic? Is she mentally stable?
The decision of Cambridge University to promote her after such an idiotic tweet creates several additional questions.
Jul 01, 2020 | www.reddit.com

https://www.change.org/p/cambridge-university-fire-cambridge-professor-for-racism

Petition against Prof Priyamvada Gopal now off line. Additionally I noticed earlier today that the comments given on the site voicing why they were signing had all been removed, but not on other petitions. As of yesterday evening these comments were peaceful, and not personal, just things like 'because it is racist' and 'do I even need to give a reason'?

The petition had nearly 25,000 signed supporters earlier today, and new signings were flooding in at over 1/sec when I checked.

In addition in an affront to common decency the University/College promoted her whilst they had stated earlier they were aware of the controversial nature of her tweets.

Her original tweet was deleted by Twitter as a breach of community guidelines. She also reports that, in spite of senselessly provoking people at a delicate time with racist tweets, that the extremely racist responses she got from some far right people was being looked at by the Police.

All in all this establishes a systematic problem. Being deliberately vague means you cannot use context as a defence, and the context of all her tweets shows some extreme patterns of thinking against certain groups that casts very considerable doubts on the validity of such a defense. Moreover, context hasn't been a defence when others have been prosecuted for far less. Nobody, including Cambridge academics, should be above the law.

To those people that think that what she said was justified because she was trying to defend BLM from supposed alternative movements, all she in fact did do was to achieve the opposite of that.

If one wishes to convey complex ideas a teacher of English in her position *must know* that this requires a long form medium to provide argumentation, and that Twitter is no such place to do it due to its character count. But taking in all the other comments she has made, its very clear the double standards and overall bias that really does amount to overt prejudice.

At the very least she is so contradictory, immature and incompetent as to make a mockery of her college and for that reason at minimum, she should lose her job. I'm sorry to say that as well.

But something about this whole episode feels like a jumping the shark moment. I don't think this is going away all that easily.

[Jun 30, 2020] Older Workers Targeted in Trump's Lawsuit to End Obamacare by DEAN BAKER

Notable quotes:
"... This would be bad news for anyone with a serious health condition, but it would be especially bad news for the oldest pre-Medicare age group, people between the ages of 55 and 64. This group currently faces average premiums of close to $10,000 a year per person for insurance purchased through the ACA exchanges. Insurers could easily charge people with serious health conditions two or three times this amount if the Trump administration wins its case. ..."
"... The 55 to 64 age group will also be hard hit because they are far more likely to have serious health issues than younger people. Just 18 percent of the people in the youngest 18 to 34 age group have a serious health condition, compared to 44 percent of those in the 55 to 64 age group, as shown in the figure above. ..."
Jun 30, 2020 | angrybearblog.com

Anne , June 30, 2020 12:49 pm

https://cepr.net/older-workers-targeted-in-trumps-lawsuit-to-end-obamacare/

June 30, 2020

Older Workers Targeted in Trump's Lawsuit to End Obamacare
By DEAN BAKER

The Trump administration is supporting a lawsuit which seeks to overturn the Affordable Care Act (ACA) in its entirety. The implication is that a large share of the older workers now able to afford health insurance as a result of the ACA will no longer be able to afford it if the Trump administration wins its lawsuit.

Furthermore, if the suit succeeds it will both end the expansion of Medicaid, which has insured tens of millions of people, and again allow discrimination against people with serious health conditions. Ending this discrimination was one of the major goals of the ACA. The issue is that insurers don't want to insure people who are likely to have health issues that cost them money. While they are happy to insure healthy people with few medical expenses, people with heart disease, diabetes, or other health conditions are a bad deal for insurers.

Before the ACA, insurers could charge outlandish fees to cover people with health conditions, or simply refuse to insure them altogether. The ACA required insurers to cover everyone within an age bracket at the same price, regardless of their health. If the Trump administration has its way, we would go back to the world where insurers could charge people with health issues whatever they wanted, or alternatively, just deny them coverage.

This would be bad news for anyone with a serious health condition, but it would be especially bad news for the oldest pre-Medicare age group, people between the ages of 55 and 64. This group currently faces average premiums of close to $10,000 a year per person for insurance purchased through the ACA exchanges. Insurers could easily charge people with serious health conditions two or three times this amount if the Trump administration wins its case.

And, since a Trump victory would eliminate the ACA subsidiaries, people in this age group with health conditions could be looking to pay $20,000 to $30,000 a year for insurance, with no help from the government. That will be especially hard since many people with serious health conditions are unable to work full-time jobs, and some can't work at all.
[Graph]

The 55 to 64 age group will also be hard hit because they are far more likely to have serious health issues than younger people. Just 18 percent of the people in the youngest 18 to 34 age group have a serious health condition, compared to 44 percent of those in the 55 to 64 age group, as shown in the figure above.

The ACA has many inadequacies, but it has allowed tens of millions to get insurance who could not otherwise. Donald Trump wants to take this insurance away.

[Jun 20, 2020] Colleges will have a lot of trouble this fall

Another issue with all types of education is that lots of students, especially foreign students, depend very heavily on restarats temp jobs and casual hospitality work.
Jun 20, 2020 | www.nakedcapitalism.com

4. Colleges will have a lot of trouble this fall . First, they are losing nearly all their full-freight-paying Chinese students, between concern over US Covid-19 risks, Administration hostility, and travel restrictions. That alone is a big blow.

On top of that, some are planning to reopen but MIT's announcement yesterday, that it will not allow all students to return to campus, probably represents a new normal. Well-placed MIT alumni read the university's decision as driven significantly by a desire to protect faculty and staff; I hear from sources with contacts at other universities that administrators that they see no way to put kids in dorms without running unacceptably high Covid risks.

Remember, even though kids almost never die of Covid-19, but there is a risk of serious damage. 1/2 the asymptomatic cases on the Diamond Princess now show abnormal lungs. And remember those cruises have half the people on board as crew, and the crew skews young. College is a lot less appealing if you don't stay in a dorm.

Just as diminished activity in central business districts has negative knock-on effects to nearby business, so to do hollowed-out colleges and universities have for their communities, as described in more depth in a recent Bloomberg story .

Krystyn Podgajski , June 18, 2020 at 7:52 am

The coming college semester is a big question mark. The influx of students is entangled with real estate, shopping and the biggest in my town, restaurants and bars. Not to mention the college sports season which supported so many AirBnB's here.

They are starting the year early here (UNC Chapel Hill) and ending it early as well, on Thanksgiving! And up to 1000 new students will be learning from home instead of coming to campus.

Vastydeep , June 18, 2020 at 11:30 am

Big question mark -- MIT's president Reif yesterday noted that

"At least for the fall, we can only bring some of our undergraduates back to campus." and "Everything that can be taught effectively online will be taught online."

Courses are comparatively easy, but labs, research, and sports look doubtful if/when case counts start marching up again.

[Jun 18, 2020] Cornell Law Prof Says There's a Coordinated Effort To Have Him Fired After He Criticized Black Lives Matter

Highly recommended!
This is a typical hunt on dissidents
Jun 12, 2020 | www.zerohedge.com

Recall, it was just days ago that we pointed out Cornell professor and friend of Zero Hedge Dave Collum was publicly shamed by Cornell for daring to express the "wrong" opinion about current events on social media. Now, there's a second Cornell professor coming under fire for his critique of the Black Lives Matter movement.

Cornell Law School professor William A. Jacobson has challenged any student or faculty member to a public debate about the Black Lives Matter movement after he says liberals on campus have launched a "coordinated effort" to have him fired from his job. At least 15 emails from alumni have been sent to the dean, demanding that action be taken, according to Fox News .

"There is an effort underway to get me fired at Cornell Law School, where I've worked since November 2007, or if not fired, at least denounced publicly by the school," Jacobson wrote on Thursday . "I condemn in the strongest terms any insinuation that I am racist."

Jacobson founded the website Legal Insurrection and says he's had an "awkward relationship" with the university for years as a result. The recent outrage comes as a result of two posts he recently made on his site:

"Those posts accurately detail the history of how the Black Lives Matters Movement started, and the agenda of the founders which is playing out in the cultural purge and rioting taking place now," Jacobson said.

Jacobson (Source: Jacobson's Blog, Legal Insurrection )

He recently wrote on his blog: "Living as a conservative on a liberal campus is like being the mouse waiting for the cat to pounce. For over 12 years, the Cornell cat did not pounce. Though there were frequent and aggressive attempts by outsiders to get me fired, including threats and harassment, it always came from off campus."

"Not until now, to the best of my knowledge, has there been an effort from inside the Cornell community to get me fired," he says.

"The effort appears coordinated, as some of the emails were in a template form. All of the emails as of Monday were from graduates within the past 10 years," he continued. Jacobson's "clinical faculty colleagues, apparently in consultation with the Black Law Students Association" drafted and published a letter denouncing 'commentators, some of them attached to Ivy League Institutions, who are leading a smear campaign against Black Lives Matter.'"

Cornell responded , backhandedly defending the Professor's right to his own opinion:

"...the Law School's commitment to academic freedom does not constitute endorsement or approval of individual faculty speech. But to take disciplinary action against him for the views he has expressed would fatally pit our values against one another in ways that would corrode our ability to operate as an academic institution."

"This is not just about me. It's about the intellectual freedom and vibrancy of Cornell and other higher education institutions, and the society at large. Open inquiry and debate are core features of a vibrant intellectual community," he stated.

"I challenge a representative of those student groups and a faculty member of their choosing to a public debate at the law school regarding the Black Lives Matter Movement, so that I can present my argument and confront the false allegations in real-time rather than having to respond to baseless community email blasts."

"I condemn in the strongest terms any insinuation that I am racist, and I greatly resent any attempt to leverage meritless accusations in hopes of causing me reputational harm. While such efforts might succeed in scaring others in a similar position, I will not be intimidated," Jacobson concluded.

[Jun 16, 2020] "That's why they call it the American Dream, because you have to be asleep to believe it." by George Carlin

Highly recommended!
Notable quotes:
"... Old saying: A Recession is when your neighbor loses their Job. A Depression is when you lose your Job. ..."
"... A lot of mega wealthy people are cheats. They get insider info, they don't pay people and do all they can to provide the least amount of value possible while tricking suckers into buying their crap. Don't even get me started on trust fund brats who come out of the womb thinking they are Warren buffet level genius in business. ..."
"... There's a documentary about Wal-Mart that has the best title ever: The High Cost of Low Cost ..."
"... Globalism killed the American dream. We can buy cheap goods made somewhere else if we have a job here that pays us enough money. ..."
Jun 16, 2020 | www.youtube.com

Dave C , 4 days ago

"That's why they call it the American Dream, because you have to be asleep to believe it." -George Carlin

Robert Schupp , 4 days ago

You can't just move to American cities to pursue opportunity; even the high wages paid in New York are rendered unhelpful because the cost of housing is so high.


Dingo Jones
, 3 days ago

@JOHN GAGLIANO Cost of living is ridiculous too.

Dirtysparkles , 4 days ago

Our country has become the American Nightmare

Jean-Pierre S , 4 days ago

Martin Luther King, Jr. was vilified and ultimately murdered when he was helping organize a Poor People's Campaign. Racial justice means economic justice.

John Sanders , 3 days ago

Old saying: A Recession is when your neighbor loses their Job. A Depression is when you lose your Job.

Adriano de Jesus , 4 days ago

A lot of mega wealthy people are cheats. They get insider info, they don't pay people and do all they can to provide the least amount of value possible while tricking suckers into buying their crap. Don't even get me started on trust fund brats who come out of the womb thinking they are Warren buffet level genius in business.

Ammon Weser , 4 days ago

There's a documentary about Wal-Mart that has the best title ever: The High Cost of Low Cost

crazyman8472 , 4 days ago

Night Owl: "What the hell happened to us? What happened to the American Dream?"

Comedian: "What happened to the American Dream? It came true! You're looking at it."

-- Watchmen

David Tidwell , 4 days ago

Nailed it. As a millennial, I'm sick of being told to just "deal with it" when the cards have always been stacked against me. Am I surviving? Yes. Am I thriving? No.

D dicin , 4 days ago

When the reserve status of the American dollar goes away, then it will become apparent how poor the US really is. You cannot maintain a country without retention of the ability to manufacture the articles you use on a daily basis. The military budget and all the jobs it brings will have to shrink catastrophically.

farber2 , 4 days ago

American trance. The billionaires hypnotized people with this lie.

Michael D , 4 days ago (edited)

...and sometimes you CAN'T afford to move. You can't find a decent job. You certainly can't build a meaningful savings. You can't find an apartment. And if you have kids? That makes it even harder. I've been trying to move for years, but the conditions have to be perfect to do it responsibly. The American Dream died for me once I realized that no matter the choices I made, my four years of college, my years of saving and working hard....I do NOT have upward mobility. For me, the American Dream is dead. I've been finding a new dream. The human dream.

B Sim , 3 days ago

This is a very truncated view. You need to expand your thinking. WHY has the system been so overtly corrupted? It's globalism that has pushed all this economic pressure on the millennials and the middle class. It was the elites, working with corrupt politicians, that rigged the game so the law benefited them.

This is all reversible. History shows that capitalism can be properly regulated in a way that benefits all. The answer to the problem is to bring back those rules, not implement socialism.

Trump has:

The result? before COVID hit the average American worker saw the first inflation adjusted wage increase in over 30 years!

This is why the fake news and hollywood continue to propagandize the masses into hating Trump.

Trump is implementing economic policies good for the people and bad for the elites

Sound Author , 3 days ago

The dream was never alive in the first place. It was always bullshit.

Julia Galaudet , 4 days ago

Maybe it's time for a maximum wage.

Scott Clark , 4 days ago

Private equity strips the country for years! It's the AMERICAN DREAM!!!

Siri Erieott , 4 days ago

A dream for 1%, a nightmare for 99%.

andrew kubiak , 4 days ago

Globalism killed the American dream. We can buy cheap goods made somewhere else if we have a job here that pays us enough money.

[Jun 16, 2020] Krystal Ball: The American dream is dead, good riddance

Highly recommended!
Notable quotes:
"... Debt-free is the new American dream ..."
Jun 12, 2020 | www.youtube.com

Krystal Ball exposes the delusion of the American dream.

About Rising: Rising is a weekday morning show with bipartisan hosts that breaks the mold of morning TV by taking viewers inside the halls of Washington power like never before. The show leans into the day's political cycle with cutting edge analysis from DC insiders who can predict what is going to happen.

It also sets the day's political agenda by breaking exclusive news with a team of scoop-driven reporters and demanding answers during interviews with the country's most important political newsmakers.

Owen Cousino , 4 days ago

Debt-free is the new American dream

poppaDehorn , 4 days ago

Got my degree just as the great recession hit. Couldn't find real work for 3 years, not using my degree... But it was work. now after 8 years, im laid off. I did everything "right". do good in school, go to college, get a job...

I've never been fired in my life. its always, "Your contract is up" "Sorry we cant afford to keep you", "You can make more money collecting! but we'll give a recommendation if you find anything."

Now I'm back where i started... only now I have new house and a family to support... no pressure.

[Jun 14, 2020] Anonymous Berkeley Professor Shreds BLM Injustice Narrative With Damning Facts And Logic

Highly recommended!
A strange mixture of Black nationalism with Black Bolshevism is a very interesting and pretty alarming phenomenon. It proved to be a pretty toxic mix. But it is far from being new. We saw how the Eugène Pottier famous song International lines "We have been naught we shall be all." and "Servile masses arise, arise." unfolded before under Stalinism in Soviet Russia.
We also saw Lysenkoism in Academia before, and it was not a pretty picture. Some Russian/Soviet scientists such as Academician Vavilov paid with their life for the sin of not being politically correct. From this letter it is clear that the some departments already reached the stage tragically close to that situation.
Lysenkoism was "politically correct" (a term invented by Lenin) because it was consistent with the broader Marxist doctrine. Marxists wanted to believe that heredity had a limited role even among humans, and that human characteristics changed by living under socialism would be inherited by subsequent generations of humans. Thus would be created the selfless new Soviet man
"Lysenko was consequently embraced and lionized by the Soviet media propaganda machine. Scientists who promoted Lysenkoism with faked data and destroyed counterevidence were favored with government funding and official recognition and award. Lysenko and his followers and media acolytes responded to critics by impugning their motives, and denouncing them as bourgeois fascists resisting the advance of the new modern Marxism." The Disgraceful Episode Of Lysenkoism Brings Us Global Warming Theory
Notable quotes:
"... In the extended links and resources you provided, I could not find a single instance of substantial counter-argument or alternative narrative to explain the under-representation of black individuals in academia or their over-representation in the criminal justice system. ..."
"... any cogent objections to this thesis have been raised by sober voices, including from within the black community itself, such as Thomas Sowell and Wilfred Reilly. These people are not racists or 'Uncle Toms'. They are intelligent scholars who reject a narrative that strips black people of agency and systematically externalizes the problems of the black community onto outsiders . Their view is entirely absent from the departmental and UCB-wide communiques. ..."
"... The claim that the difficulties that the black community faces are entirely causally explained by exogenous factors in the form of white systemic racism, white supremacy, and other forms of white discrimination remains a problematic hypothesis that should be vigorously challenged by historians ..."
"... Would we characterize criminal justice as a systemically misandrist conspiracy against innocent American men? I hope you see that this type of reasoning is flawed, and requires a significant suspension of our rational faculties. Black people are not incarcerated at higher rates than their involvement in violent crime would predict . This fact has been demonstrated multiple times across multiple jurisdictions in multiple countries. ..."
"... If we claim that the criminal justice system is white-supremacist, why is it that Asian Americans, Indian Americans, and Nigerian Americans are incarcerated at vastly lower rates than white Americans? ..."
"... Increasingly, we are being called upon to comply and subscribe to BLM's problematic view of history , and the department is being presented as unified on the matter. In particular, ethnic minorities are being aggressively marshaled into a single position. Any apparent unity is surely a function of the fact that dissent could almost certainly lead to expulsion or cancellation for those of us in a precarious position , which is no small number. ..."
"... The vast majority of violence visited on the black community is committed by black people . There are virtually no marches for these invisible victims, no public silences, no heartfelt letters from the UC regents, deans, and departmental heads. The message is clear: Black lives only matter when whites take them. Black violence is expected and insoluble, while white violence requires explanation and demands solution. Please look into your hearts and see how monstrously bigoted this formulation truly is. ..."
"... The claim that black intraracial violence is the product of redlining, slavery, and other injustices is a largely historical claim. It is for historians, therefore, to explain why Japanese internment or the massacre of European Jewry hasn't led to equivalent rates of dysfunction and low SES performance among Japanese and Jewish Americans respectively. ..."
"... Arab Americans have been viciously demonized since 9/11, as have Chinese Americans more recently. However, both groups outperform white Americans on nearly all SES indices - as do Nigerian Americans , who incidentally have black skin. It is for historians to point out and discuss these anomalies. However, no real discussion is possible in the current climate at our department . The explanation is provided to us, disagreement with it is racist, and the job of historians is to further explore additional ways in which the explanation is additionally correct. This is a mockery of the historical profession. ..."
"... Donating to BLM today is to indirectly donate to Joe Biden's 2020 campaign. This is grotesque given the fact that the American cities with the worst rates of black-on-black violence and police-on-black violence are overwhelmingly Democrat-run. Minneapolis itself has been entirely in the hands of Democrats for over five decades ; the 'systemic racism' there was built by successive Democrat administrations. ..."
"... The total alliance of major corporations involved in human exploitation with BLM should be a warning flag to us, and yet this damning evidence goes unnoticed, purposefully ignored, or perversely celebrated. We are the useful idiots of the wealthiest classes , carrying water for Jeff Bezos and other actual, real, modern-day slavers. Starbucks, an organisation using literal black slaves in its coffee plantation suppliers, is in favor of BLM. Sony, an organisation using cobalt mined by yet more literal black slaves, many of whom are children, is in favor of BLM. And so, apparently, are we. The absence of counter-narrative enables this obscenity. Fiat lux, indeed. ..."
"... MLK would likely be called an Uncle Tom if he spoke on our campus today . We are training leaders who intend, explicitly, to destroy one of the only truly successful ethnically diverse societies in modern history. As the PRC, an ethnonationalist and aggressively racially chauvinist national polity with null immigration and no concept of jus solis increasingly presents itself as the global political alternative to the US, I ask you: Is this wise? Are we really doing the right thing? ..."
Jun 12, 2020 | www.zerohedge.com

Dear profs X, Y, Z

I am one of your colleagues at the University of California, Berkeley. I have met you both personally but do not know you closely, and am contacting you anonymously, with apologies. I am worried that writing this email publicly might lead to me losing my job, and likely all future jobs in my field.

In your recent departmental emails you mentioned our pledge to diversity, but I am increasingly alarmed by the absence of diversity of opinion on the topic of the recent protests and our community response to them.

In the extended links and resources you provided, I could not find a single instance of substantial counter-argument or alternative narrative to explain the under-representation of black individuals in academia or their over-representation in the criminal justice system. The explanation provided in your documentation, to the near exclusion of all others, is univariate: the problems of the black community are caused by whites, or, when whites are not physically present, by the infiltration of white supremacy and white systemic racism into American brains, souls, and institutions.

Many cogent objections to this thesis have been raised by sober voices, including from within the black community itself, such as Thomas Sowell and Wilfred Reilly. These people are not racists or 'Uncle Toms'. They are intelligent scholars who reject a narrative that strips black people of agency and systematically externalizes the problems of the black community onto outsiders . Their view is entirely absent from the departmental and UCB-wide communiques.

The claim that the difficulties that the black community faces are entirely causally explained by exogenous factors in the form of white systemic racism, white supremacy, and other forms of white discrimination remains a problematic hypothesis that should be vigorously challenged by historians . Instead, it is being treated as an axiomatic and actionable truth without serious consideration of its profound flaws, or its worrying implication of total black impotence. This hypothesis is transforming our institution and our culture, without any space for dissent outside of a tightly policed, narrow discourse.

A counternarrative exists. If you have time, please consider examining some of the documents I attach at the end of this email. Overwhelmingly, the reasoning provided by BLM and allies is either primarily anecdotal (as in the case with the bulk of Ta-Nehisi Coates' undeniably moving article) or it is transparently motivated. As an example of the latter problem, consider the proportion of black incarcerated Americans. This proportion is often used to characterize the criminal justice system as anti-black. However, if we use the precise same methodology, we would have to conclude that the criminal justice system is even more anti-male than it is anti-black .

Would we characterize criminal justice as a systemically misandrist conspiracy against innocent American men? I hope you see that this type of reasoning is flawed, and requires a significant suspension of our rational faculties. Black people are not incarcerated at higher rates than their involvement in violent crime would predict . This fact has been demonstrated multiple times across multiple jurisdictions in multiple countries.

And yet, I see my department uncritically reproducing a narrative that diminishes black agency in favor of a white-centric explanation that appeals to the department's apparent desire to shoulder the 'white man's burden' and to promote a narrative of white guilt .

If we claim that the criminal justice system is white-supremacist, why is it that Asian Americans, Indian Americans, and Nigerian Americans are incarcerated at vastly lower rates than white Americans? This is a funny sort of white supremacy. Even Jewish Americans are incarcerated less than gentile whites. I think it's fair to say that your average white supremacist disapproves of Jews. And yet, these alleged white supremacists incarcerate gentiles at vastly higher rates than Jews. None of this is addressed in your literature. None of this is explained, beyond hand-waving and ad hominems. "Those are racist dogwhistles". "The model minority myth is white supremacist". "Only fascists talk about black-on-black crime", ad nauseam.

These types of statements do not amount to counterarguments: they are simply arbitrary offensive classifications, intended to silence and oppress discourse . Any serious historian will recognize these for the silencing orthodoxy tactics they are , common to suppressive regimes, doctrines, and religions throughout time and space. They are intended to crush real diversity and permanently exile the culture of robust criticism from our department.

Increasingly, we are being called upon to comply and subscribe to BLM's problematic view of history , and the department is being presented as unified on the matter. In particular, ethnic minorities are being aggressively marshaled into a single position. Any apparent unity is surely a function of the fact that dissent could almost certainly lead to expulsion or cancellation for those of us in a precarious position , which is no small number.

I personally don't dare speak out against the BLM narrative , and with this barrage of alleged unity being mass-produced by the administration, tenured professoriat, the UC administration, corporate America, and the media, the punishment for dissent is a clear danger at a time of widespread economic vulnerability. I am certain that if my name were attached to this email, I would lose my job and all future jobs, even though I believe in and can justify every word I type.

The vast majority of violence visited on the black community is committed by black people . There are virtually no marches for these invisible victims, no public silences, no heartfelt letters from the UC regents, deans, and departmental heads. The message is clear: Black lives only matter when whites take them. Black violence is expected and insoluble, while white violence requires explanation and demands solution. Please look into your hearts and see how monstrously bigoted this formulation truly is.

No discussion is permitted for nonblack victims of black violence, who proportionally outnumber black victims of nonblack violence. This is especially bitter in the Bay Area, where Asian victimization by black assailants has reached epidemic proportions, to the point that the SF police chief has advised Asians to stop hanging good-luck charms on their doors, as this attracts the attention of (overwhelmingly black) home invaders . Home invaders like George Floyd . For this actual, lived, physically experienced reality of violence in the USA, there are no marches, no tearful emails from departmental heads, no support from McDonald's and Wal-Mart. For the History department, our silence is not a mere abrogation of our duty to shed light on the truth: it is a rejection of it.

The claim that black intraracial violence is the product of redlining, slavery, and other injustices is a largely historical claim. It is for historians, therefore, to explain why Japanese internment or the massacre of European Jewry hasn't led to equivalent rates of dysfunction and low SES performance among Japanese and Jewish Americans respectively.

Arab Americans have been viciously demonized since 9/11, as have Chinese Americans more recently. However, both groups outperform white Americans on nearly all SES indices - as do Nigerian Americans , who incidentally have black skin. It is for historians to point out and discuss these anomalies. However, no real discussion is possible in the current climate at our department . The explanation is provided to us, disagreement with it is racist, and the job of historians is to further explore additional ways in which the explanation is additionally correct. This is a mockery of the historical profession.

Most troublingly, our department appears to have been entirely captured by the interests of the Democratic National Convention, and the Democratic Party more broadly. To explain what I mean, consider what happens if you choose to donate to Black Lives Matter, an organization UCB History has explicitly promoted in its recent mailers. All donations to the official BLM website are immediately redirected to ActBlue Charities , an organization primarily concerned with bankrolling election campaigns for Democrat candidates. Donating to BLM today is to indirectly donate to Joe Biden's 2020 campaign. This is grotesque given the fact that the American cities with the worst rates of black-on-black violence and police-on-black violence are overwhelmingly Democrat-run. Minneapolis itself has been entirely in the hands of Democrats for over five decades ; the 'systemic racism' there was built by successive Democrat administrations.

The patronizing and condescending attitudes of Democrat leaders towards the black community, exemplified by nearly every Biden statement on the black race, all but guarantee a perpetual state of misery, resentment, poverty, and the attendant grievance politics which are simultaneously annihilating American political discourse and black lives. And yet, donating to BLM is bankrolling the election campaigns of men like Mayor Frey, who saw their cities devolve into violence . This is a grotesque capture of a good-faith movement for necessary police reform, and of our department, by a political party. Even worse, there are virtually no avenues for dissent in academic circles . I refuse to serve the Party, and so should you.

The total alliance of major corporations involved in human exploitation with BLM should be a warning flag to us, and yet this damning evidence goes unnoticed, purposefully ignored, or perversely celebrated. We are the useful idiots of the wealthiest classes , carrying water for Jeff Bezos and other actual, real, modern-day slavers. Starbucks, an organisation using literal black slaves in its coffee plantation suppliers, is in favor of BLM. Sony, an organisation using cobalt mined by yet more literal black slaves, many of whom are children, is in favor of BLM. And so, apparently, are we. The absence of counter-narrative enables this obscenity. Fiat lux, indeed.

There also exists a large constituency of what can only be called 'race hustlers': hucksters of all colors who benefit from stoking the fires of racial conflict to secure administrative jobs, charity management positions, academic jobs and advancement, or personal political entrepreneurship.

Given the direction our history department appears to be taking far from any commitment to truth , we can regard ourselves as a formative training institution for this brand of snake-oil salespeople. Their activities are corrosive, demolishing any hope at harmonious racial coexistence in our nation and colonizing our political and institutional life. Many of their voices are unironically segregationist.

MLK would likely be called an Uncle Tom if he spoke on our campus today . We are training leaders who intend, explicitly, to destroy one of the only truly successful ethnically diverse societies in modern history. As the PRC, an ethnonationalist and aggressively racially chauvinist national polity with null immigration and no concept of jus solis increasingly presents itself as the global political alternative to the US, I ask you: Is this wise? Are we really doing the right thing?

As a final point, our university and department has made multiple statements celebrating and eulogizing George Floyd. Floyd was a multiple felon who once held a pregnant black woman at gunpoint. He broke into her home with a gang of men and pointed a gun at her pregnant stomach. He terrorized the women in his community. He sired and abandoned multiple children , playing no part in their support or upbringing, failing one of the most basic tests of decency for a human being. He was a drug-addict and sometime drug-dealer, a swindler who preyed upon his honest and hard-working neighbors .

And yet, the regents of UC and the historians of the UCB History department are celebrating this violent criminal, elevating his name to virtual sainthood . A man who hurt women. A man who hurt black women. With the full collaboration of the UCB history department, corporate America, most mainstream media outlets, and some of the wealthiest and most privileged opinion-shaping elites of the USA, he has become a culture hero, buried in a golden casket, his (recognized) family showered with gifts and praise . Americans are being socially pressured into kneeling for this violent, abusive misogynist . A generation of black men are being coerced into identifying with George Floyd, the absolute worst specimen of our race and species.

I'm ashamed of my department. I would say that I'm ashamed of both of you, but perhaps you agree with me, and are simply afraid, as I am, of the backlash of speaking the truth. It's hard to know what kneeling means, when you have to kneel to keep your job.

It shouldn't affect the strength of my argument above, but for the record, I write as a person of color . My family have been personally victimized by men like Floyd. We are aware of the condescending depredations of the Democrat party against our race. The humiliating assumption that we are too stupid to do STEM , that we need special help and lower requirements to get ahead in life, is richly familiar to us. I sometimes wonder if it wouldn't be easier to deal with open fascists, who at least would be straightforward in calling me a subhuman, and who are unlikely to share my race.

The ever-present soft bigotry of low expectations and the permanent claim that the solutions to the plight of my people rest exclusively on the goodwill of whites rather than on our own hard work is psychologically devastating . No other group in America is systematically demoralized in this way by its alleged allies. A whole generation of black children are being taught that only by begging and weeping and screaming will they get handouts from guilt-ridden whites.

No message will more surely devastate their futures, especially if whites run out of guilt, or indeed if America runs out of whites. If this had been done to Japanese Americans, or Jewish Americans, or Chinese Americans, then Chinatown and Japantown would surely be no different to the roughest parts of Baltimore and East St. Louis today. The History department of UCB is now an integral institutional promulgator of a destructive and denigrating fallacy about the black race.

I hope you appreciate the frustration behind this message. I do not support BLM. I do not support the Democrat grievance agenda and the Party's uncontested capture of our department. I do not support the Party co-opting my race, as Biden recently did in his disturbing interview, claiming that voting Democrat and being black are isomorphic. I condemn the manner of George Floyd's death and join you in calling for greater police accountability and police reform. However, I will not pretend that George Floyd was anything other than a violent misogynist, a brutal man who met a predictably brutal end .

I also want to protect the practice of history. Cleo is no grovelling handmaiden to politicians and corporations. Like us, she is free. play_arrow

LEEPERMAX , 12 seconds ago

Donations to Black Lives Matter are funneled through a Democratic fundraising group ...

seryanhoj , 36 seconds ago

This guy is not playing by the rules of US political discourse. His sins are:

1). Using real facts

2). Making logical deductions from the facts

3) Making assertions not in line with the script from his party, social group or race.

There is no future for such a man. We are in a time which prefers hysteria , lies and epic partisanship

simpson seers , 36 minutes ago

white muricans aren't racist, they kill equally....

https://www.fort-russ.com/2020/01/u-s-regime-has-killed-20-30-million-people-since-world-war-ii/

https://www.fort-russ.com/2020/02/former-american-drone-operator-us-military-worse-than-nazis/

Aubiekong , 36 minutes ago

Blacks will always be poor and fucked in life when 75% of black infants are born to single most likely welfare dependent mothers... And the more amount of welfare monies spent to combat poverty the worse this problem will grow...

taketheredpill , 37 minutes ago

Anonymous....

1) Is he really a Professor at Berkeley?

2) Is he really a Professor anywhere?

3) Is he really Black?

4) Is he really a He?

LEEPERMAX , 44 minutes ago

BLM is an international organization. They solicit tax free charitable donations via ActBlue. ActBlue then funnels billions of dollars to DNC campaigns. This is a violation of campaign finance law and allows foreign influence in American elections.

CRM114 , 44 minutes ago

I've pointed this out before:

In 2015, after the Freddie Gray death Officers were hung out to dry by the Mayor of Baltimore (yes, her, the Chair of the DNC in 2016), active policing in Baltimore basically stopped. They just count the bodies now. The clearance rate for homicides has dropped to, well, we don't know because the Police refuse to say, but it appears to be under 15%. The homicide rate jumped 50% almost immediately and has stayed there. 95% of homicides are black on black.

The Baltimore Sun keeps excellent records, so you can check this all for yourself.

Looking at killings by cops; if we take the worst case and exclude all the ones where the victim was armed and independent witnesses state fired first, and assume all the others were cop murders, then there's about 1 cop murder every 3 years, which means that since has now stopped and the homicide rate's gone up...

For every black man now not murdered by a cop, 400 more black men are murdered by other black men.

taketheredpill , 46 minutes ago

"As an example of the latter problem, consider the proportion of black incarcerated Americans. This proportion is often used to characterize the criminal justice system as anti-black. However, if we use the precise same methodology, we would have to conclude that the criminal justice system is even more anti-male than it is anti-black ."

It is the RATIO of UNARMED BLACK MALES KILLED to UNARMED WHITE MALES KILLED in RELATION TO % OF POPULATION. RATIO.

RATIO. UNARMED.

BLACK % POPULATION 13% BLACK % UNARMED MEN KILLED 37%

WHITE % POPULATION 74% BLACK % UNARMED MEN KILLED 45%

Is there a trend of MORE Black people being killed by police?

No. But there is an underlying difference in the numbers that is bad.

>>>>> As of 2018, Unarmed Blacks made up 36% of all people UNARMED killed by police. But black people make up 13% of the (unarmed) population.

UNARMED KILLINGS BY POLICE

UNARMED KILLINGS BY POLICE

YEAR Black Hispanic White

2015 36 19 31

2016 18 9 20

2017 19 12 24

2018(Apr) 7 1 10

2019 15 11 25

YEAR Black Hispanic White

2015 42% 22% 36%

2016 38% 19% 43%

2017 35% 22% 44%

2018(Apr) 39% 6% 56%

2019 29% 22% 49%

AVG 37% 18% 45%

% POPN 13% 16% 72%

ARMED > 18 YRS OLD TOY WEAPON

Black Hispanic White

2019 5 3 11

26% 16% 58%

https://www.washingtonpost.com/investigations/fatal-police-shootings-of-unarmed-people-have-significantly-declined-experts-say/2018/05/03/d5eab374-4349-11e8-8569-26fda6b404c7_story.html

radical-extremist , 47 minutes ago

There's a massive Silent Majority of Americans , including black Americans, that are fed up with this absurd nonsense.

While there's a Vocal Minority of Americans : including Democrats, the media, corporations and race hustlers, that wish to continue to promulgate a FALSE NARRATIVE into perpetuity...because it's a lucrative industry.

Gaius Konstantine , 57 minutes ago

A short while ago I had an ex friend get into it with me about how Europeans (whites), were the most destructive race on the planet, responsible for all the world's evil. I pointed out to him that Genghis Khan, an Asian, slaughtered millions at a time when technology made this a remarkable feat. I reminded him the Japanese gleefully killed millions in China and that the American Indian Empires ran 24/7 human sacrifices with some also practicing cannibalism. His poor libtard brain couldn't handle the fact that evil is a human trait, not restricted to a particular race and we parted (good riddance)

But along with evil, there is accomplishment. Europeans created Empires and pursued science, The Asians also participated in these pursuits and even the Aztec and Inca built marvelous cities and massive states spanning vast stretches of territory. The only race that accomplished little save entering the stone age is the Africans. Are we supposed to give them a participation trophy to make them feel better? Is this feeling of inferiority what is truly behind their constant rage?

Police in the US have been militarized for a long time now and kill many more unarmed whites than they do blacks, where is the outrage? I'm getting the feeling that this isn't really about George, just an excuse to do what savages do.

lwilland1012 , 1 hour ago

"Truth is treason in an empire of lies."

George Orwell

You know that the reason he is anonymous is that Berkley would strip him of his teaching credentials and there would be multiple attempts on his life...

Ignatius , 1 hour ago

" The vast majority of violence visited on the black community is committed by black people . There are virtually no marches for these invisible victims, no public silences, no heartfelt letters from the UC regents, deans, and departmental heads. The message is clear: Black lives only matter when whites take them. Black violence is expected and insoluble, while white violence requires explanation and demands solution. Please look into your hearts and see how monstrously bigoted this formulation truly is."

PhD thesis, right there. ..

Templar X , 1 hour ago

Ex-fed who trained Buffalo cops says shoved activist 'got away lightly'

By Craig McCarthy

June 12, 2020 | 12:31pm

A former fed who trained the police in Buffalo believes the elderly protester who was hospitalized after a cop pushed him to the ground "got away lightly" and "took a dive," according to a report.

The retired FBI agent, Gary DiLaura, told The Sun he thinks there's no chance Buffalo officers will be convicted of assault over the now-viral video showing the longtime peace activist Martin Gugino fall and left bleeding on the ground.

" I can't believe that they didn't deck him. If that would have been a 40-year-old guy going up there, I guarantee you they'd have been all over him, " DiLaura said.

" He absolutely got away lightly. He got a light push and in my humble opinion, he took a dive and the dive backfired because he hit his head. Maybe it'll knock a little bit of sense into him, " added the former fed, who trained Buffalo police on firearms and defensive tactics, according to the report...

https://nypost.com/2020/06/12/ex-fed-who-trained-buffalo-cops-elderly-activist-got-away-lightly/

NanoRap , 17 minutes ago

It's a great brainwashing process, which goes very slow[ly] and is divided [into] four basic stages. The first one [is] demoralization ; it takes from 15-20 years to demoralize a nation. Why that many years? Because this is the minimum number of years which [is required] to educate one generation of students in the country of your enemy, exposed to the ideology of the enemy. In other words, Marxist-Leninist ideology is being pumped into the soft heads of at least three generations of American students, without being challenged, or counter-balanced by the basic values of Americanism (American patriotism).

The result? The result you can see. Most of the people who graduated in the sixties (drop-outs or half-baked intellectuals) are now occupying the positions of power in the government, civil service, business, mass media, [and the] educational system. You are stuck with them. You cannot get rid of them. T hey are contaminated; they are programmed to think and react to certain stimuli in a certain pattern. You cannot change their mind[s], even if you expose them to authentic information, even if you prove that white is white and black is black, you still cannot change the basic perception and the logic of behavior. In other words, these people... the process of demoralization is complete and irreversible. To [rid] society of these people, you need another twenty or fifteen years to educate a new generation of patriotically-minded and common sense people, who would be acting in favor and in the interests of United States society.

Yuri Bezmenov

American Psycho , 16 minutes ago

This article was one of the most articulate and succinct rebuttals to the BLM political power grab. I too have been calling these "allies" useful idiots and I am happy to hear this professor doing the same. Bravo professor!

[Jun 11, 2020] The silver lining in the dark cloud: the COVID Crisis Canceled Many Graduation Speeches. Thank Goodness...

Jun 11, 2020 | www.zerohedge.com

As with allmost everything that occurs as a university, the purpose of the commencement speech is not to provide a service to the students, but to make the institution's faculty and staff feel important...

...It should be noted that most students who attend commencement ceremonies couldn't care less who the celebrity speaker is. Most of them are there because they like the ritualistic aspects of it, and virtually no one remembers what is said at commencement speeches in any case.

The fact that most students (i.e., paying customers) just want to "feel graduated" by going to these ceremonies should be a tip to the faculty that speakers should be non-controversial. But, because these administrators want attention and influence, they often insist on bringing in controversial political figures and causing even more grief for their customers, as if four years of over-priced classes and social conditioning wasn't enough.

The fact colleges and universities couldn't care less about the people who pay the bills was reinforced all the more this year when most universities shut down as a result of the COVID-19 panic. Most higher education institutions insisted on charging students full price even though "college" was reduced to series of Zoom meetings and online assignments. Obviously, that's not what most students paid for. College administrators, of course, were adamant that the students keep paying through the nose for services not rendered

...

Fortunately, some of the more intelligent university trustees have already done away with it altogether. Cep notes:

As Jason Song of The Los Angeles Times noticed, current Washington and Lee President Kenneth Ruscio explained in 2009: "The wise and fiscally prudent Board determined that in future years our graduates and families should rest easy knowing that if they had to endure a worthless Commencement address, it would at least be inexpensive," meaning the president gives the only speech.


Tennessee Patriot , 4 minutes ago

Best example I ever heard of describing a graduation ceremony:

Imagine you are sitting there in the hot sun, wrapped in a shower curtain, listening to someone read a NYC Phone book for 3 hours.

I had to do that for HS, two Bachelor's Degrees, a Masters, two daughters & two out of 7 Grandbabies.

No thanks. Highly overrated ********. If it was up to me, they can mail it to me and lets go straight to the party afterwards.

Handful of Dust , 1 hour ago

" I mean, you got the first mainstream African-American who is articulate and bright and clean and a nice-looking guy. I mean, that's a storybook, man."

Joe Biden, referring to the Kenyan at the beginning of the 2008 Democratic primary campaign, Jan. 31, 2007.

"He's like magic. Some day they'll be calling him The Magic *****!"

Yen Cross , 1 hour ago

The longer these kids are away from their indoctrination camps, the better.

Bear , 1 hour ago

"As many colleges struggle with tight budgets" ... what a crook, they have so much money they can pay their professors 250,000 to toe the line and they a support staff of thousands ... America's most corrup institution (after the FED)

[Jun 11, 2020] History repeats itself, first as tragedy, then as farce: The replay on the new level of slogans Viva proletarian science. Down with Bourgeoisie lackeys in academia

Politicized science makes a strong comeback.
Notable quotes:
"... Who is Amy Siskind going to call to arrest Tucker Carlson and bring him to a tribunal? The defunded police? ..."
Jun 11, 2020 | www.theamericanconservative.com

Look at what's happening to Harald Uhlig, a prominent University of Chicago economist, who posted:

Harald Uhlig @haralduhlig

Too bad, but # blacklivesmatter per its core organization @ Blklivesmatter just torpedoed itself, with its full-fledged support of # defundthepolice : "We call for a national defunding of police." Suuuure. They knew this is non-starter, and tried a sensible Orwell 1984 of saying,

603 11:43 PM - Jun 8, 2020 Twitter Ads info and privacy

281 people are talking about this

Uhlig now faces a social media campaign, led by a prominent University of Michigan economist, to get him booted as editor of the Journal of Political Economy . Here is another leader of the professional lynch mob:

Max Auffhammer @auffhammer

I am calling for the resignation of Harald Uhlig ( @ haralduhlig ) as the editor of the Journal of Political Economy. If you would like to add your name to this call, it is posted at https:// forms.gle/9uiJVqCAXBDBg6 8N9 . It will be delivered by end of day 6/10 (tomorrow).

Letter calling for the resignation of Harald Uhlig as Editor of the Journal of Political Economy

To: The editors of the Journal of Political Economy and President of The University of Chicago Press We, the undersigned, call for the resignation of Harald Uhlig, the Bruce Allen and Barbara...

docs.google.com
413 5:34 PM - Jun 9, 2020 Twitter Ads info and privacy

216 people are talking about this

These are academics.


Jack 19 hours ago

Amy Siskind sounds like a Pol Pot in waiting.

Civis Romanus Sum 19 hours ago

There has been a rash of firings of editors this week. One interesting thing - judging by the publications listed and by the cringing, groveling apologies given by these editors, they are liberals who are being eaten by up-and-coming radicals. It's like the liberals had no idea what hit them.

Wilfred 18 hours ago

I used to worry the future would be like "1984". Then the Soviet Union fell, things seemed OK tor awhile. After 9/11, I worried the future would be like "Khartoum". But now, it looks like it is going to be a weird combination of "Invasion of the Body-Snatchers" and "Planet of the Apes".

Seoulite 18 hours ago

Now seeing reports on Twitter that the Seattle Autonomous Zone now has its first warlord. America truly is a diverse place. You have hippie communes, religious sects, semi-autonomous Indian reservations, a gerontocracy in Washington, and now your very own Africa style fiefdom complete with warlord.

I really am sorry. This must be so depressing to watch as an American.

RBH 18 hours ago • edited

Arizona State journalism school retracts offer to new dean because of an "insensitive" tweets and comments - by insensitive we mean, not sufficiently zealous and not hip to the full-spectrum wokeness. Online student petitions follow, and you know the rest of the story.

This is madness. The true late stages of a revolution where they start eating their own.

https://www.azcentral.com/s...

SatirevFlesti 18 hours ago

Those tweets above (and countless others like them) just demonstrate the absolute intellectual and moral rot that now reigns in academia. I saw one yesterday by an attorney for a prominent activist organization who said he couldn't understand why the Constitution isn't interpreted as "requiring" the demolition of the Robert E. Lee statue in Virginia, and others like it. I'm having a harder time understanding how he ever graduated from an accredited law school.

Forget "defund the police," perhaps "defund universities" would be the best place to start healing what ails contemporary culture. The rot started there, not only with the "anti-racist" (as opposed to "mere" non-racism) cant, it with gender ideology (Judith Butler), Cultural Marxism, etc. When "pc" first became a common term in the early '90s I thought it passing fad. We now see the result of the decades long radical march through the institutions bearing fruit, and it's more strange and rotten fruit than ever.

Raskolnik 17 hours ago

Woke leftists are the people who believe in the myth of aggregate Black intellectual parity with Whites and Asians the least. That's why they constantly do absolutely everything in their power to juke the statistics, like allowing Black students to not have to take exams, which is really just an extension of this same principle at work in "affirmative action."

lohengrin 17 hours ago • edited

The French Revolution, the Bolshevik Revolution, the Great Leap Forward, the Khmer Rouge--100,000,000 people were murdered in the name of extreme egalitarianism across the 20th century. When leftism gets out of control, tragedy happens.

I have no idea why you believe hard totalitarian methods aren't coming. I'm not sure what the answer is. We can expect no help from the Republican party. That much is certain. A disturbing number of people have not yet awoken from their dogmatic slumber.

Mr. Karamazov 17 hours ago

People are going to have to stand up to these bullies. If you back down they will just beat you up again tomorrow.

Fyodor D 16 hours ago

Who is Amy Siskind going to call to arrest Tucker Carlson and bring him to a tribunal? The defunded police?

It seems to me that the left has gone about this bassackwards. First you ashcan the Second Amendment, THEN you take away their First Amendment Rights. You most certainly do not go around silencing people with political correctness, then go around announcing your intention to kulak an entire group of very well-armed people. But that's just my opinion...

Rod, I disagree that a "soft totalitarianism" is what awaits us if these barbarians are allowed to run around unopposed. The notion of human rights is a product of the religion they despise, so I see no reason why they would respect this ideal when dealing with vile white wreckers of the multi-cultural utopia they have envisioned.

[Jun 04, 2020] The Gig Economy: WTF? Precarity and Work under Neoliberalism

Highly recommended!
"The gig economy is just a way for corporations to cut the cost of employees, by turning them into subcontractors. They blur the line between employee and subcontractors by having tight rules like an employer, and since most people have a employee mentality, the company nurtures the idea that they somehow are more like employees, then they get mostly good workers, working hard for very little compensation. The Gig economy is just another sign of our failing way of life."
Notable quotes:
"... The gig economy would be great if we lived in a society where health care is free, food is cheap, housing is common, and nobody suffers from economic Issues Which is not what we are living in ..."
"... Neo-liberals - we support freedom and stuff. Removes mask Is actually corporation lapdogs. ..."
Jun 04, 2020 | www.youtube.com

Unlike most developments in the employment market, the Gig Economy has received a great deal of press attention and established itself firmly as a point of reference in the popular consciousness. In recent years, increasing numbers of people have turned to services such as Uber, Lyft, Deliveroo, Just Eat, TaskRabbit and Fiverr as either a side hustle or their main source of income.

Following on from my video on neoliberalism and neoliberal capitalism, in today's episode of What the Theory?, we look deeper into how the gig economy (or sharing economy) works and what differentiates it from the rest of the economy. We ask whether the gig economy is truly an opportunity for those wanting a more flexible work arrangement or whether it is simply a means for multinational corporations to circumvent hard-won workers rights and labour laws.

Finally, we also consider whether there might be some historical precedents to the sharing economy in the early industrial period and look at some of the challenges facing those attempting to organise Deliveroo riders, Uber drivers and other gig economy workers into trade unions in order to negotiate for better rates of pay and conditions.

If you'd like to support my channel then please do check out my Patreon page at http://patreon.com/tomnicholas


Simple Things , 5 months ago

Unregulated capitalism? You mean like child labor and passing the hat when a worker dies in an accident? They don't want workers. They want people who are desperate.

Tom Nicholas , 5 months ago

Well, how far it all goes is something that remains to be seen. I don't think we'll get as far as child labour but the curation of dependence is something that's definitely in progress.

memeoverlord 2010 , 5 months ago

They don't want people who are desperate, they want slaves.

Tyler Potts , 4 months ago

Tom Nicholas but if they could they would have kids gigging. The gig economy is a scam, I'd rather pay more for an Uber and have unionized drivers.

Tyler Potts , 4 months ago

Daxton Lyon except the majority of entrepreneurs and business owners didn't come Into their business ownership via merit. You are forgetting that most of these people are born into a situation where they have access to capital, access to legal services and education. Sure there are a minority of people who make it from nothing but that number is diminishingly small.

John Jourdan , 3 months ago

I notice not one of you mentioned immigrants. lol

EYTPS , 2 months ago

Daxton Lyon "You don't like the gig? Do something else." Too bad the economy is currently setup to where around half of individuals are limited to gig and don't have the resources and money to do anything else.

EYTPS , 2 months ago

Daxton Lyon "If any of you did, your panzy responses regarding corporate greed would be squashed!" No, they wouldn't, but keep performing those red herrings and hasty, extremely-worshipping generalizations about entrepreneurship to distract from the point; I'm sure they'll catch on.

Justin Goretoy , 5 months ago

Neoliberalism is the religious belief that markets are magical and will regulate themselves.

User Name , 4 months ago

The gig economy would be great if we lived in a society where health care is free, food is cheap, housing is common, and nobody suffers from economic Issues Which is not what we are living in

memeoverlord 2010 , 5 months ago

Neo-liberals - we support freedom and stuff. Removes mask Is actually corporation lapdogs.

[Jun 02, 2020] Don't understand the protests? What you're seeing is people pushed to the edge

Jun 02, 2020 | angrybearblog.com

  1. anne , May 31, 2020 4:48 pm

    https://www.latimes.com/opinion/story/2020-05-30/dont-understand-the-protests-what-youre-seeing-is-people-pushed-to-the-edge

    May 30, 2020

    Don't understand the protests? What you're seeing is people pushed to the edge
    By KAREEM ABDUL-JABBAR – Los Angeles Times

    What was your first reaction when you saw the video of the white cop kneeling on George Floyd's neck while Floyd croaked, "I can't breathe"?

    If you're white, you probably muttered a horrified, "Oh, my God" while shaking your head at the cruel injustice. If you're black, you probably leapt to your feet, cursed, maybe threw something (certainly wanted to throw something), while shouting, "Not @#$%! again!" Then you remember the two white vigilantes accused of murdering Ahmaud Arbery as he jogged through their neighborhood in February, and how if it wasn't for that video emerging a few weeks ago, they would have gotten away with it. And how those Minneapolis cops claimed Floyd was resisting arrest but a store's video showed he wasn't. And how the cop on Floyd's neck wasn't an enraged redneck stereotype, but a sworn officer who looked calm and entitled and devoid of pity: the banality of evil incarnate.

    Maybe you also are thinking about the Karen in Central Park who called 911 claiming the black man who asked her to put a leash on her dog was threatening her. Or the black Yale University grad student napping in the common room of her dorm who was reported by a white student. Because you realize it's not just a supposed "black criminal" who is targeted, it's the whole spectrum of black faces from Yonkers to Yale.

    You start to wonder if it should be all black people who wear body cams, not the cops.

    What do you see when you see angry black protesters amassing outside police stations with raised fists? If you're white, you may be thinking, "They certainly aren't social distancing." Then you notice the black faces looting Target and you think, "Well, that just hurts their cause." Then you see the police station on fire and you wag a finger saying, "That's putting the cause backward."

    You're not wrong -- but you're not right, either. The black community is used to the institutional racism inherent in education, the justice system and jobs. And even though we do all the conventional things to raise public and political awareness -- write articulate and insightful pieces in the Atlantic, explain the continued devastation on CNN, support candidates who promise change -- the needle hardly budges.

    But COVID-19 has been slamming the consequences of all that home as we die at a significantly higher rate than whites, are the first to lose our jobs, and watch helplessly as Republicans try to keep us from voting .

Bert Schlitz , May 31, 2020 7:14 pm

The protests are self centered crap blacks do year after year. Considering 370 whites over 100 Latinos were killed by cops, many as bad as that guy in minnie. Blacks have a Trumptard mentality. We have a ecological disaster, a economic disaster and pandemic(when th they are spreading). Yet let's whine about one bad cop related homicide.

This may begin the breakup of the Democratic party and the blacks. The differences are just to large.

Kaleberg , May 31, 2020 9:40 pm

It's rather sad that it takes a massive civil disturbance to get the authorities to arrest a man videotaped killing another. You'd think that would just happen as a matter of course, but that's how it works in this country.

Denis Drew , June 1, 2020 10:17 am

THE WAY BACK -- THE ONLY WAY BACK -- BOTH ECONOMICALLY AND POLITICALLY (pardon me if I take up a lot of space -- almost everyone else has said most of what they want to say)

EITC shifts only 2% of income while 40% of American workers earn less that what we think the minimum wage should be -- $15/hr.
http://fortune.com/2015/04/13/who-makes-15-per-hour/

The minimum wage itself should only mark the highest wage that we presume firms with highest labor costs can pay* -- like fast food with 25% labor costs. Lower labor cost businesses -- e.g., retail like Walgreens and Target with 10-15% labor costs can potentially pay north of $20/hr; Walmart with 7% labor costs, $25/hr!

That kind of income can only be squeezed out of the consumer market (meaning out of the consumer) by labor union bargaining.

Raise fast food wages from $10/hr to $15/hr and prices go up only a doable 12.5%. Raise Walgreens, Target from $10/hr to $20/hr and prices there only go up a piddling 6.25%. Keeping the math easy here -- I know that Walgreens and Target pay more to start but that only reinforces my argument about how much labor income is being left on the (missing) bargaining table.

Hook up Walmart with 7% labor costs with the Teamsters Union and the wage and benefit sky might be the limit! Don't forget (everybody seems to) that as more income shifts to lower wage workers, more demand starts to come from lower wage workers -- reinforcing their job security as they spend more proportionately at lower wage firms (does not work for low wage employees of high end restaurants -- the exception that actually proves the rule).

Add in sector wide labor agreements and watch Germany appear on this side of the Atlantic overnight.
* * * * * *

If Republicans held the House in the last (115th) Congress they would have passed HR2723-Employee Rights Act -- mandating new union recertification/decertification paper ballots in any bargaining unit that has had experienced "turnover, expansion, or alteration by merger of unit represented employees exceeding 50 percent of the bargaining unit" by the date of the enactment -- and for all time from thereafter. Trump would have signed it and virtually every union in the country would have experienced mandated recert/decert votes in every bargaining unit.
https://www.congress.gov/bill/115th-congress/house-bill/2723/text

Democrats can make the most obvious point about what was lacking in the Republican bill by pretending to be for a cert/recert bill that mandates union ballots only at places where there is no union now. Republicans jumping up and down can scream the point for us that there is no reason to have ballots in non union places and not in unionized workplaces -- and vice versa.
* * * * * *

Biggest problem advocating the vastly attractive and all healing proposal of federally mandated cert/recert/decert elections seems to be that nobody will discuss it as long as nobody else discusses it -- some kind of innate social behavior I think, from deep in our (pea sized) midbrains. How else can you explain the perfect pitch's neglect. I suspect that if I waved a $100 bill in front of a bunch of progressives and offered it to the first one would say the words out loud: "Regularly scheduled union elections are the only way to restore shared prosperity and political fairness to America", that I might not get one taker. FWIW.

Another big problem when I try to talk to workers about this on the street -- just to get a reaction -- is that more than half have no idea in the world what unions are all about. Those who do understand, think the idea so sensible they often think action must be pending.

Here is Andrew Strom's take:
https://onlabor.org/why-not-hold-union-representation-elections-on-a-regular-schedule/

[see just below for last link -- can't lay more than three at a time :-)]

Denis Drew , June 1, 2020 10:17 am

*1968 federal minimum was $12/hr – indicating that consumer support was there at half today's per capita income.
https://data.bls.gov/cgi-bin/cpicalc.pl?cost1=1.60&year1=196801&year2=202001

rick shapiro , June 1, 2020 10:46 am

econ101 should tell you that the eitc is a subsidy to the corporations that hire droves of low-paid workers, with meagre spillover to the workers themselves. More effective and persistent improvements to social justice would come from significant increases to the minimum wage, societal support to unionization, and other efforts to increase the threshold of what is considered by society to be the bare minimum of compensation for work.
The concomitant decline in the value of the dollar and the terms of trade would be small compared to the reduction in inequality.

Bernard , June 1, 2020 5:21 pm

such a third world country as America , riots are the only way to get heard for some. the Elite have been looting us blind for decades, the Covid bail outs to Corporations by the Elites in DC as the latest installment of Capitalist theft know as Business as Usual.
it's all about the money.
sick,sick country praising capitalism over everything else.
the comfortable white people are afraid of losing what they have. Divide and Conquer is the Republican and now Democratic way they run America.

to the rich go the spoils. the rest, well. screw them .

the Lee Atwater idea to use coded language when St. Reagan implemented the destruction of America society, coincided with St. Thatcher's destruction of England.

the White elites post Civil War in the South knew how to divide the poor whites and the poor blacks.

that is how we got to where we are now.

Did you see any of the bankers go to jail for the 2008 ripoff?
not one and they got bonuses for their "deeds."

America, such a nation of Grifters, Thieves and Scam artist. like Pelosi , McConnel and all the people in DC and the Business men who sold out our country and the American people for "small change".

God forbid Corporations should ever have to pay for the damage they have done to America and its" people. My RIGHT to Greed trumps your right to clean air, water, safe neighborhoods, says Capitalism!

the Rich get richer and the poor get poorer, Everybody Knows!!!

But let's not focus on things lest some uncomfortable truths.

and wonder why riots happen, Not at All!

[Jun 02, 2020] So we're going to tell our soldiers that we're redeploying them from the Middle East to the midwest? What do we think they're going to say, 'yeah, sure, no problem?' Guess again."

Trump's threat to deploy the military here is an excessive and dangerous one. Mark Perry reports on the reaction from military officers to the president's threat:
Jun 02, 2020 | www.theamericanconservative.com

Senior military officer on Trump statement: "So we're going to tell our soldiers that we're redeploying them from the Middle East to the midwest? What do we think they're going to say, 'yeah, sure, no problem?' Guess again."

-- Mark Perry (@markperrydc) June 2, 2020

Earlier in the day yesterday, audio has leaked in which the Secretary of Defense referred to U.S. cities as the "battlespace." Separately, Sen. Tom Cotton was making vile remarks about using the military to give "no quarter" to looters. This is the language of militarism.

It is a consequence of decades of endless war and the government's tendency to rely on militarized options as their answer for every problem. Endless war has had a deeply corrosive effect on this country's political system: presidential overreach, the normalization of illegal uses of force, a lack of legal accountability for crimes committed in the wars, and a lack of political accountability for the leaders that continue to wage pointless and illegal wars. Now we see new abuses committed and encouraged by a lawless president, but this time it is Americans that are on the receiving end. Trump hasn't ended any of the foreign wars he inherited, and now it seems that he will use the military in an llegal mission here at home.

Megan San hour ago

The military is the only American institution that young people still have any real degree of faith in, it will be interesting to see the polls when this is all over with.

[Jun 02, 2020] Cornel West America Is A Failed Social Experiment, Neoliberal Wing Of Democratic Party Must Be Fought

See also End of empire Blueprint or scramble — RT Renegade Inc. Of the many important interviews you've done, this is one of the most important and best.
Notable quotes:
"... our culture so market-driven, everybody for sale, everything for sale, you can't deliver the kind of really real nourishment for soul, for meaning, for purpose. ..."
"... The system cannot reform itself. We've tried black faces in high places ..."
"... You've got a neoliberal wing of the Democratic party that is now in the driver's seat with the collapse of brother Bernie and they really don't know what to do because all they want to do is show more black faces -- show more black faces. ..."
"... So when you talk about the masses of black people, the precious poor and working-class black people, brown, red, yellow, whatever color, they're the ones left out and they feel so thoroughly powerless, helpless, hopeless, then you get rebellion. ..."
May 29, 2020 | www.realclearpolitics.com
Dr. Cornel West said on Friday we are witnessing the failed social experiment that is the United States of America in the protests and riots that have followed the death of George Floyd at the hands of Minneapolis police. West told CNN host Anderson Cooper that what is going on is rebellion to a failed capitalist economy that does not protect the people. West, a professor, denounced the neoliberal wing of the Democratic party that is all about "black faces in high places" but not actual change. The professor remarked even those black faces often lose legitimacy because they ingriatiate themselves into the establishment neo-liberal Democratic party.

"I think we are witnessing America as a failed social experiment," West said. "What I mean by that is that the history of black people for over 200 and some years in America has been looking at America's failure, its capitalist economy could not generate and deliver in such a way people can live lives of decency. The nation-state, it's criminal justice system, it's legal system could not generate protection of rights and liberties."

From commentary delivered on CNN Friday night:

DR. CORNEL WEST: And now our culture so market-driven, everybody for sale, everything for sale, you can't deliver the kind of really real nourishment for soul, for meaning, for purpose.

So when you get this perfect storm of all these multiple failures at these different levels of the American empire, and Martin King already told us about that...

The system cannot reform itself. We've tried black faces in high places. Too often our black politicians, professional class, middle class become too accommodated to the capitalist economy, too accommodated to a militarized nation-state, too accommodated to the market-driven culture of celebrities, status, power, fame, all that superficial stuff that means so much to so many fellow citizens.

And what happens is we have a neofascist gangster in the White House who doesn't care for the most part. You've got a neoliberal wing of the Democratic party that is now in the driver's seat with the collapse of brother Bernie and they really don't know what to do because all they want to do is show more black faces -- show more black faces.

But often times those black faces are losing legitimacy too because the Black Lives Matter movement emerged under a black president, a black attorney general, and a black Homeland Security [Secretary] and they couldn't deliver.

So when you talk about the masses of black people, the precious poor and working-class black people, brown, red, yellow, whatever color, they're the ones left out and they feel so thoroughly powerless, helpless, hopeless, then you get rebellion.

... ...

[Jun 02, 2020] There is increasing evidence that certain gangs and other nefarious outside agitators are engaged in deliberate property damage and vandalism during the recent protests against police brutality--demonstrating that they are trying to hijack these protests

Organized crime in the USA is not a myth and its connections to law enforcement also is not a myth. They are ideal provocateurs for riots. Also they want their piece of action too ;-)
Jun 02, 2020 | www.moonofalabama.org
ak74 , Jun 2 2020 0:49 utc | 132
News Flash!!!

There is increasing evidence that certain gangs and other nefarious outside agitators are engaged in deliberate property damage and vandalism during the recent protests against police brutality--demonstrating that they are trying to hijack these protests and are not sincerely concerned about the issue of racism against African Americans/minorities in the US or police repression.

I wonder if William Barr or the American Regime will now finally declare these groups as "terrorists"?

Police at Protests All Over the Country Caught Destroying Property

https://libya360.wordpress.com/2020/06/01/police-at-protests-all-over-the-country-caught-destroying-property/

[Jun 02, 2020] Two goons who work at a fancy nightclub (aka Mob Headquarters) and one ends up dead. Smells like a mob hit; ordered and paid for by who is the right question

Jun 02, 2020 | www.moonofalabama.org

Trailer Trash , Jun 1 2020 19:10 utc | 37

It is my informal observation that riots tend to collapse from exhaustion after about three days. That's not happening this time, as every new day sees more and more house arrest orders (called "curfew", a nice antiseptic term) across the country.

Current events bring to mind the 1933 failed fascist coup d'etat exposed by General Smedley "War is a Racket" Butler. Instead of organizing half a million war veterans by the VFW, today's "Business Plot" organizers would have at their disposal one million already trained and equipped paramilitary police forces.

In such a scenario there is no reason for local cops to know who is pulling strings; all they have to do is follow orders, which they are more than willing to do, especially with commanders giving them football-style pep talks before going out to break heads.

It's well-documented that the spooks have been trying to get rid of Trump since the election, first with "Russia-gate", then arresting and/or driving out all his trusted staff, then the impeachment. Why should anyone think the spooks have given up? How many times did they try to kill Castro?

If the idea that a spook-led coup d'etat is in progress really has merit (I have "medium confidence"), it will be enforced by the police, not the Army or even National Guard units. So far, Guard units have not fired on protesters and many are not armed. I strongly suspect the army is not reliable, and commanders know it :

In Denver, Guard troops are carrying nonlethal weapons, including batons, tasers, and pepper spray. "They were fully embedded with Denver PD," said Air Force Maj. Gen. Michael Loh, Colorado's adjutant general. "The Denver police chief Paul Pazen said if we have to use deadly force and I want my police officers to do it , and I want you to be in support."

National Guard are recruited with boatloads of TV ads all promoting how Guardsmen are used to help their neighbors during natural disasters. Those ads never feature Guardsmen facing down or shooting angry protesters, and Guardsmen want to believe they are there "to help". The police, however, are under no such illusions and affirm their willingness to kill civilians every time they strap on their side-arm.

If Guardsmen get itchy trigger fingers and shoot civilians without orders, well that just happens sometimes, not a big deal. But if commanders give the order to shoot and they don't, that is a huge crisis which I assume commanders would want to avoid.

--------
From the BBC timeline :

During this attempt [to put Floyd in the patrolcar], at 20:19, Mr Chauvin pulled Mr Floyd out of the passenger side, causing him to fall to the ground, the report said.

He lay there, face down, still in handcuffs.

This suggests he was pulled out of the car by Chauvin for the express purpose of killing him. His cool demeanor is striking. He knows he is openly killing Floyd while being filmed but remains confident he is protected.

Two goons who work at a fancy nightclub (aka Mob Headquarters) and one ends up dead. Smells like a mob hit; ordered and paid for by who is the right question.


Alpi , Jun 1 2020 20:28 utc | 55

The death of George Floyd was ruled a HOMICIDE by independent autopsy.

https://www.rt.com/usa/490441-george-floyd-died-asphyxia-neck/

This report, combined with the fact that Derek Chauvin knew and worked with the victim, makes this homicide premeditated or at the very least a 2nd degree murder.

The fact that the other officers did not intervene makes them complicit in the act and should be brought up on manslaughter charges and accessory to commit murder.

Charging the other officers will help slightly in tamping down the riots, although it may be too late. The wheels have been placed in motion and this is morphing into something bigger than George Floyd.

RJPJR , Jun 1 2020 20:33 utc | 57
Look closely at the film of the end of the murder when the ambulance came for the victim:

https://twitter.com/littllemel/status/1266393141906726912

First responders immediately examine the victim for any signs of life, and they come prepared with equipment to resuscitate the victim if possible. Not these men.

They got out of the ambulance and moved in fast, picked up his body like it was a huge sack of potatoes, and THREW him on to the gurney. Obviously, they knew that he was dead, knew that he was supposed to be dead.

They were NOT first responders in any sense, but openly armed and uniformed policemen.

Consider...

[Jun 02, 2020] As the world watches the US being confronted with massive riots, looting, chaos and heightened violence, US officials, instead of reflecting on the systematic problems in their society that led to such a crisis, have returned to their old 'blame game' against left-wingers, 'fake news' media and 'external forces....

Jun 02, 2020 | www.moonofalabama.org

karlof1 , Jun 1 2020 17:14 utc | 15

It's True how this analysis sees and describes what's occurring within the Outlaw US Empire, more than validating Cornel West's assessment, except it misses the major component--Class--while seeing lizard's list:

"As the world watches the US being confronted with massive riots, looting, chaos and heightened violence, US officials, instead of reflecting on the systematic problems in their society that led to such a crisis, have returned to their old 'blame game' against left-wingers, 'fake news' media and 'external forces....'

"[O]bservers see a weak, irresponsible and incompetent leadership navigating the country into a completely opposite direction, with all-out efforts to deflect public attention from its own failure.

"Mass protests erupted in a growing numbers of cities in the US over the weekend, and at least 40 cities have imposed curfews, while the National Guard has been activated in 14 states and Washington DC, according to US media reports ... [P]rotests across the country continued into a sixth straight night.

"More Americans have slammed the US president for inciting hatred and racism, and US officials, who turn a blind eye to the deep-seated issues in American society, including racial injustice, economic woes and the coronavirus pandemic, began shifting the blame to the former US president, extremists, and China for inflaming the social unrests."

Blaming Chinese, Russians and/or Martians isn't going to help Trump. Without doing a thing, Biden has risen to a lead of 8-10% in the most recent polling. Trumps many mistakes have dug him a hole that now seems to be collapsing in upon him. He's cursed worse than Midas as everything he attempts turns out a big negative and only worsens the situation.

[Jun 02, 2020] How you define "oppression" ?

Jan 03, 2020 | crookedtimber.org

soru 12.31.19 at 6:39 pm 21 ( 21 )

The problem is in how you define "oppression".

For example if you take a marxian definition of l class, it means people who don't own the means of production, that easily means the bottom 80% of the population. However a large part of this group is usually considered middle class, and is not really seen as oppressed.

I don't think this is right; unlike 'exploited', Marx doesn't use the word 'oppression' in any technical or unusual way, just in it's usual sense.

So a prosperous middle class person in a liberal democracy is not oppressed. A Marxist would merely point out that they would be in a more capitalist society; one without a universal franchise that requires the rich to seek political allies.

people of the working class don't feel they are working class, but rather identify as blue collars

If you look into the actual details of vote tallies; you find more or less the precise opposite. There are a key block of people who, objectively speaking, earn most of their income from stocks that they own, in the form of pension funds. Up until recently, this block was the victim of false consciousness; they identified as something like 'blue collar', based on the jobs they used to do, and the communities they they used to belong to. As of the last few elections, political activity by the Republicans and Tories has managed to overcome that, so they now vote based on their objective class interests. Those who rely on a small lump of capital have mostly the same class interests as those in possession of more; fewer environmental regulations, lower minimum wages, and so forth.

Meanwhile, most of the current working class don't get to vote, because they lack citizenship in the countries in question.

[Jun 01, 2020] Riots underline the need for systemic social change. An end to vulture capitalism which has caused most of the problems associated with extreme income inequity.

Jun 01, 2020 | www.unz.com

Nancy O'Brien Simpson , says: Show Comment June 1, 2020 at 2:09 pm GMT

@mark green It is interesting how both sides think they know the other side. Liberals think that Deplorables are redneck Nascar people with zero education. Rightists think the left are deluded commie pinkos, radical queers and pink pussy hatted idiots.

To help with your education I have protested the death of George Floyd in Cincinnati for two days. The protests were mostly young persons and half were white. About two thousand were in our park yesterday to hear speeches. The speeches were about systemic social change. An end to vulture capitalism which has caused most of the problems associated with extreme income inequity.

Also, an end to the endless insane wars fought for profit and American hegemony in places we do not belong. No one is horrified at the violence, we are surprised it did not begin sooner. Desperate people act in desperate ways. The system needs to change.

[Jun 01, 2020] Class struggle and the reaction of the neoliberal society to riots in the USA

Notable quotes:
"... It's also true that the oligarchy will continue to preserve the system it's created in the U.S. through all available means, using its militarized police forces as its loyal street level enforcers. Change would happen very quickly if enough police turned and join with the "mobs". ..."
Jun 01, 2020 | www.moonofalabama.org

by lizard

hauled from a comment

I think this relevant to how fractured the discourse is. it's a repost from my litter watering hole.

I know it's going to be difficult to accept what I'm about to say because people get very invested in their chosen narratives, but it's important that you at least be exposed to the notion that it's all true.

It's true that now is the time to realize what's at stake, but instead of acting collectively for our mutual benefit, the cognitive challenge of accepting that all these things can be true at the same time will keep us tied to one of these things to the exclusion of all the others.

It's hard work, I know. But I have faith in you.

Posted by b on June 1, 2020 at 16:08 UTC | Permalink

this analysis sees and describes what's occurring within the Outlaw US Empire, more than validating Cornel West's assessment, except it misses the major component--Class--while seeing lizard's list:

"As the world watches the US being confronted with massive riots, looting, chaos and heightened violence, US officials, instead of reflecting on the systematic problems in their society that led to such a crisis, have returned to their old 'blame game' against left-wingers, 'fake news' media and 'external forces....'

"[O]bservers see a weak, irresponsible and incompetent leadership navigating the country into a completely opposite direction, with all-out efforts to deflect public attention from its own failure.

"Mass protests erupted in a growing numbers of cities in the US over the weekend, and at least 40 cities have imposed curfews, while the National Guard has been activated in 14 states and Washington DC, according to US media reports ... [P]rotests across the country continued into a sixth straight night.

"More Americans have slammed the US president for inciting hatred and racism, and US officials, who turn a blind eye to the deep-seated issues in American society, including racial injustice, economic woes and the coronavirus pandemic, began shifting the blame to the former US president, extremists, and China for inflaming the social unrests."

Blaming Chinese, Russians and/or Martians isn't going to help Trump. Without doing a thing, Biden has risen to a lead of 8-10% in the most recent polling. Trumps many mistakes have dug him a hole that now seems to be collapsing in upon him. He's cursed worse than Midas as everything he attempts turns out a big negative and only worsens the situation.

Posted by: karlof1 | Jun 1 2020 17:14 utc | 15

It's also true that the oligarchy will continue to preserve the system it's created in the U.S. through all available means, using its militarized police forces as its loyal street level enforcers. Change would happen very quickly if enough police turned and join with the "mobs". Otherwise any positive change in the prevailing structure will be extremely incremental if at all, and will be resisted at every level until it collapses because there is nothing left worth to exploit.

Posted by: krypton | Jun 1 2020 17:24 utc | 18


Posted by: Noirette | Jun 1 2020 17:26 utc | 19

Imho the present protests, social 'unrest,' in the USA will just die out as usual, nothing will be accomplished - what are the politcal demands? zero.. - on to the next chapter of misery and oppression.

Posted by: Noirette | Jun 1 2020 17:26 utc | 19

Indeed, and there was no other goal by stirring up these protest to the public murder of Floyd in plain daylight, after decades of deideologization of the US masses by brainwashing through US education system, TV, Hollywood, and so on.

Provocate the poor masses to find no way than to emotionally revolt through a brute action broadcasted to the four corners of the US through the media, to then show the rightful protesters as disorganized anarchist riotters without any vison or idea ( with unestimable help by white supremacists and cops infiltrated, and even by rich blonde boys stealing surf boards as if there was no tomorrow...)so as to show the middle and upper classes that this will be the aspect of the country in case socialist policies would be put in practice. This is to appeal once again, and possibly the last one, to the greedy individualist allegevd "winner" to once more vote against its own interest, as after the elections all what would not be looted by the poor would be looted by the state. Then it will come the gnashing of teeth and regrets on not having suppoorted those poor people when they were being murdered in the streets.

But, may be, some would even be grateful of being quirurgically robed by the state ( thorugh their bank accounts and propieties value going down the hole...) instead of by these obviously majority of needed people....needed at least of respect....

Posted by: H.Schmatz | Jun 1 2020 17:42 utc | 20

"Antifa" only shows up and exists when it is needed, then magically disappears; same as Ali Queada and ISIS ...

This!

<> <> <> <> <>

Reposting my earlier comment on the Open Thread:

ZH reports that 6 people have died in the protests. Dozens of protesters and police have been injured. Tens of millions of dollars in property damage, police overtime, and cost of the likely spread of coronavirus ('second wave' now being blamed on the protesters).

All because the authorities will not appropriately charge the killers of George Floyd.

Instead, Trump and MSM turn the focus to "antifa". How convenient. MSM says nothing of the killing of 26-year old Ahmaud Arbery in Georgia weeks before and the attempted cover-up of his killing.

How many more have to die before the authorities act appropriately? How much more destruction and silent spread of coronavirus?

<> <> <> <> <>

The protesters say that a manslaughter charge against Chauvin is an injustice. Chauvin was a veteran officer who KNEW WHAT HE WAS DOING when he remained on Floyd for more than 3 minutes after he had become non-responsive.

The protesters say that the other officers are accessories to murder because they did nothing to stop it.

Every reasonable person understands that the protesters have valid points. I would say that there's a consensus that Chauvin should be charged with Second-degree murder and the other officers charged as accessories. But the authorities drag their feet - while America burns.

!!

Posted by: Jackrabbit | Jun 1 2020 17:44 utc | 21

Posted by: Lozion | Jun 1 2020 17:49 utc | 22

a)refrain from looting and that specifically the the small properties is a stupidity that will backfire quickly!
b) the demonstrations leaders must organize their own security
squads to prevent provocateurs from outside.
Fm these tasks the 1st one is rather difficult to reach, yes.The second one is much easier.

Posted by: augusto | Jun 1 2020 16:43 utc | 6

[Jun 01, 2020] It didn't happen overnight

Jun 01, 2020 | angrybearblog.com

Dan Crawford | May 31, 2020 9:12 am

US/Global Economics by Ken Melvin

3 rd World

--

It didn't happen overnight.

The nightly news, when talking about the effect of the pandemic on the populace in, say, Southeast Asian, African, South American, countries, invariably refer to the tenuous hold on life of their working poor; they don't really have a job. Each day they rise and go forth looking for work that pays enough that they and their family can continue to subsist. It is, in some countries, a long-standing problem.

Sound too familiar? Sometime in the late 80s (??) Americans began to see day labors line up at Home Depot and Lowe's lots in numbers not seen since The Great Depression. Manufacturing Corporations began subbing out their work to sub-contractors, otherwise known as employees without benefits; Construction Contractors subbed out construction work to these employees without benefits; Engineering Firms subbed out engineering to these employees without benefits; Landscapers' workers were now sub-contractors/independent contractors; Here, in the SF Bay Area, time and again, we saw vans loads of undocumented Hispanics under a 'Labor Contractor' come in from the Central Valley to build condos; the white Contractor for the project didn't have a single employee; none of the workers got a W-2. Recall watching, sometime in the 90s (??), a familiar, well dressed, rotund guest from Wall Street, on the PBS News Hour, forcefully proclaiming to the TV audience:

American workers are going to have to learn to compete with the Chinese; Civil Service employees, factory employees, are all going to have to work for less

All this subcontracting, independent contractors, was a scam, a scam meant to circumvent paying going wages and benefits, to enhance profit margins; a scam that transferred more wealth to the top. Meanwhile back at The Ranch, after the H1B Immigration Act of 1990, Microsoft could hire programmers from India for one-half the cost of a citizen programmer. Half of Bill Gates' fortune was resultant these labor savings; the other half was made off those not US Citizens. Taking a cue, Banks, Bio-Techs, some City and State Governments began subcontracting out their programming to H1Bs. Often, the subcontractors/labor contractors (often themselves immigrants) providing the programmers, held the programmers' passports/visas for security.

In the aftermath of Hurricane Katrina, friends of Bush/Cheney made fortunes on clean up contracts they subbed out for next to nothing; the independent/subcontractor scam was now officially governmentally sanctioned.

By about 2000 we began to hear the term gig-workers applied to these employees without benefits. Uber appeared in 2007 to be followed by Lift. Both are scams based on paying less than prevailing wages, on not providing worker benefits,

These days, the nightly news, when talking about the effect of the pandemic on the populace in America, shows footage of Food Banks in California with lines 2! miles long. Many of those waiting in these lines didn't have a real job before; they were gig-workers; they can't apply for Unemployment Benefits. It is estimated that 1.6 million American workers (1% of the workforce) are gig-workers; they don't have a real job. That 1% is in addition to the 16 million American workers (10% of the workforce) that are independent contractors. Of the more than 40 million currently unemployed Americans, some 17 million are either gig-workers or subcontractors/independent contractors. All of these are scams meant to transfer more wealth to the top. All of these are scams with American Workers the victims; scams, in a race to the bottom.


Denis Drew , May 31, 2020 10:51 am

Ken,

Read this by the SEIU counsel Andrew Strom -- and tell me what you think:
https://onlabor.org/why-not-hold-union-representation-elections-on-a-regular-schedule/

Democrats in the so called battle ground states would clean up at the polls with this. Why do you think those states strayed? It was because Obama and Hillary had no idea what they really needed. Voters had no idea what they SPECIFICALLY needed either -- UNIONS! They had been deunionized so thoroughly for so long that they THEMSELVES no long knew what they were missing (frogs in the slowly boiling pot).

In 1988 Jesse Jackson took the Democratic primary in Michigan with 54% against Dukakis and Gephardt. Obama beat Wall Street Romney and red-white-and-blue McCain in Wisconsin, Ohio and Michigan. But nobody told these voters -- because nobody seems to remember -- what they really needed. These voter just knew by 2016 that Democrats had not what they needed and looked elsewhere -- anywhere else!

Strom presents an easy as can be, on-step-back treatment that should go down oh, so smoothly and sweetly. What do you think?

  • Matthew young , May 31, 2020 10:51 am

    Not overnight, but a few days in 1972 when Nixon fouled the defaults and none of us knew how badly at the time.

    Reseting prices takes a long time, it is not magic and Nixon had fouled the precious metals market, overnight. That and all the commodities market needed a restructure to adapt to our new regime.

    Our way out was to export price instability to Asia. My suggestion this time is to think through the math a bit before we all suddenly freak and do another over nighter. Think about how one might spread the partial default over a 15 year period.

    All of us, stuck with 40 years of flat earth economic planning without a clue. Now we have a year at best to nail down the Lucas criteria and get a default done with some science behind it.

    I doubt it. I figure we will all go to monetary meetup with our insurance contracts ready to be confirmed. That is impossible and Trump will be stuck doing a volatile, overnight partial default, like Nixon.,

  • EMichael , May 31, 2020 12:02 pm

    Dennis,

    The states you mentioned have overwhelmingly voted Rep for the last 3 decades in their state races. One of them has instituted right to work laws, and the other two have come very close to doing the same.

    The white working class cares nothing about unions at all. They have been voting against them for decades. It's why union rights and membership has deteriorated for 5 decades.

    run75441 , May 31, 2020 12:32 pm

    EM:

    Notably, I had posted the 2016 presidential election numbers numbers for MI, PA, and WI which resulted in an "anyone but Trump or Clinton vote" and gave th election to Trump. The "anyone but Trump or Clinton vote" resulted in a historical high for the "others" category and was anywhere from 3 to 6 times higher than previously experienced in other presidential elections. It also resulted in those three states casting Electoral votes for a Republican presidential candidate since 1992 – MI, 1988 – PA, and 1988 – WI. While this does defeat your comment above on those states voting Republican, it does not take away from your other comment on Sarandon. People punished themselves with Trump in spite of every obvious clue he demonstrated of being a loon. In this case the white working class voted against themselves for Trump and those of Sarandon's ilk helped them along by voting for "others."

  • EMichael , May 31, 2020 12:45 pm

    Run, I stated in "state elections".

    Y'know one other thing I have seen in MI voting is that the amount of people who voted did not cast a voted for President also was the highest ever. Thinking these are the same people like Sarandon. It was close to 90,000 in MI.

    "87,810: Number of voters this election who cast a ballot but did not cast a vote for president. That compares to 49,840 undervotes for president in 2012.

    5 percent: Proportion of voters who opted for a third-party candidate in this election, compared to 1 percent in 2012."

    https://www.mlive.com/politics/2016/11/michigans_presidential_electio.html

    run75441 , May 31, 2020 1:58 pm

    EM:

    I am going to put the numbers out here for Presidential Election 2012 and 2016. It is easier to look at them and the percentages.

    Michigan Presidential Vote 2012 and 2016

    In this site, you can look year to year on the vote. US Election Atlas

  • ken melvin , May 31, 2020 1:04 pm

    Denis

    Thanks for your comment and the link. Wow! Where to start, huh?

    SEIU was a player from the get go, but I don't want to go there just now.

    Before Reagan, there was the first rust belt move to the non-union south. Why was the south so anti-union? I think this stuff is engendered from infancy and most of us are incapable of thinking anew when it comes to stuff our parents 'taught' us. MLK was the best thing that ever happened to the dirt-road poor south, yet they hated him and they hated the very unions that might have lifted them up. They did seem to take pleasure in the yanks' loss of jobs.

    I think the Reagan era was prelude to what is going on now, i.e., going backward while yelling whee look at me go. No doubt, Reagan turned union members against their own unions. But, the genesis of demise probably lay with automation and the early offshoring to Mexico. By Reagan, the car plants were losing jobs to Toyota and Honda and automation. By 1990, car plants that had previously employed 5,000, now automated, produced more cars employing only 1200. At the time, much of the nation's wealth was still derived from car production.

    Skipping forward a bit, the democrats blew it for years with all their talk about the 'middle-class' without realizing it was the 'disappearing middle-class'. They ignored the poor working-class vote and lost election after election.

    I've come to not like the term labor, think it affords capital an undeserved status, though much diminished, I think thought all workers would be better off in a union. Otherwise, as we are witnessing, there is no parity between workers and wealth; we are in a race to the bottom with the wealth increasingly go to the top.

  • ken melvin , May 31, 2020 1:15 pm

    Matthew – thanks for your comment

    I think that we are into a transition (about 45 yrs into) as great as the industrial revolution. We, as probably those poor souls of the 18th and 19th centuries did, are floundering, unable to come to terms with what is going on.

    I also think that those such as the Kochs have a good grasp of what is going on and are moving to protect themselves and their class.

  • ken melvin , May 31, 2020 1:21 pm

    EMichael, thanks for the comment

    Are you implying that the politicians are way behind the curve? If so, I think that you are right.

    Let me share what I was thinking last night about thinking:

    Descartes' problem was that he desperately wanted to make philosophy work within the framework of his religion, Catholicism. Paul Krugman desperately wants to make economics all work within the Holy Duality of Capitalism and Free Markets. Even Joe Stiglitz can't step out of this text. All things being possible, it is possible that either could come up with a solution to today's economic problems that would fit within the Two; but the odds are not good. Better to think anew.

    We see politicians try and try to find solutions for today's problems from within their own dogmas/ideologies. Even if they can't, they persist, they still try to impose these dogmas/ideologies in the desperate hope they might work if only applied to a greater degree. How else explain any belief that markets could anticipate and respond to pandemics? That markets could best respond to housing demand?

  • anne , May 31, 2020 1:48 pm

    Ken Melvin,

    Interesting and fine writing.

  • anne , May 31, 2020 1:49 pm

    https://twitter.com/paulkrugman/status/1267060950026326018

    Paul Krugman @paulkrugman

    Glad to see Noah Smith highlighting this all-too-relevant work by the late Alberto Alesina 1/

    https://www.bloomberg.com/opinion/articles/2020-05-30/racism-is-the-biggest-reason-u-s-safety-net-is-so-weak

    Racism Is the Biggest Reason the U.S. Safety Net Is So Weak
    Harvard economist Alberto Alesina, who died last week, found that ethnic divisions made the country less effective at providing public goods.

    7:50 AM · May 31, 2020

    The Alesina/Glaeser/Sacerdote paper on why America doesn't have a European-style welfare state -- racism -- had a big impact on my own thinking 2/

    https://scholar.harvard.edu/files/glaeser/files/why_doesnt_the_u.s._have_a_european-style_welfare_state.pdf

    For a long time anyone who pointed out that the modern GOP is basically a party that serves plutocratic ends by weaponizing white racism was treated as "shrill" and partisan. Can we now admit the obvious? 3/

  • EMichael , May 31, 2020 1:53 pm

    Ken,

    Half the politicians are behind the curve. When George Wallace showed the GOP how to win elections (Don't ever get outniggerred) the Dem Party failed to see and react to it. Then the Kochs of the world stepped in with the John Birch society (fromerly the KKK) and started playing race against class, which resulted in the white working class supporting anti-labor pols and legislation.

    The election of Obama caused the racists to go totally off the reservation with the Tea Party (formerly the KKK and the John Birch Society) and lead us to where we are now.

    Of course, the corporate world followed the blueprint.

    Way past time for the Dem Party to start attacking on a constant basis the racist GOP. And also to start appealing more to workers, though the 2016 platform certainly did that to a large degree, and the 2020 platform looks to be mush more supportive of labor than ever.

    "It's a detailed and aggressive agenda that includes doubling the minimum wage and tripling funding for schools with low-income students. He is proposing the most sweeping overhaul of immigration policy in a generation, the biggest pro-union push in three generations, and the most ambitious environmental agenda of all time.

    If Democrats take back the Senate in the fall, Biden could make his agenda happen. A primary is about airing disagreements, but legislating is about building consensus. The Democratic Party largely agrees on a suite of big policy changes that would improve the lives of millions of Americans in meaningful ways. Biden has detailed, considered plans to put much of this agenda in place. But getting these plans done will be driven much more by the outcome of the congressional elections than his questioned ambition.

    A big minimum wage increase

    Biden's commitment to raising the federal minimum wage from its current $7.25 to $15 an hour is one of the least talked-about plans at stake in the 2020 election.

    In the 2016 cycle when Hillary Clinton and Bernie Sanders disagreed about raising the minimum wage to $15 per hour, the debate was the subject of extensive coverage. By the 2020 cycle, all the major Democratic candidates were on board, so it didn't come up much. But it's significant that this is no longer controversial in Democratic Party circles. If the party is broadly comfortable with the wage hike as a matter of both politics and substance, Democrats in Congress are likely to make it happen if it's at all possible.
    Noji Olaigbe, left, from the Fight for $15 minimum wage movement, speaks during a McDonald's workers' strike in Fort Lauderdale, Florida, on May 23, 2019. David Santiago/Miami Herald/Tribune News Service/Getty Images

    The $15-an-hour minimum wage increase is also a signature issue for Biden. He endorsed New York's version of it in the fall of 2015, back when he was vice president and his boss Barack Obama was pushing a smaller federal raise.

    A big minimum wage hike polls well, it aligns with Biden's thematic emphasis on "the dignity of work," and it's a topic on which he's genuinely been a leader. It reflects his political sensibilities, which are moderate but in a decidedly more populist mode than Obama's technocratic one.

    Biden has a big Plan A to support organized labor, and a Plan B that's still consequential and considerably more plausible politically.

    Beyond a general disposition to be a good coalition partner to organized labor, the centerpiece of his union agenda is support for the PRO Act, which passed the House of Representatives earlier this year.

    That bill, were it to become law, would be the biggest victory for unions and collective bargaining since the end of World War II -- overriding state "right to work" laws, barring mandatory anti-union briefings from management during organizing campaigns, imposing much more meaningful financial penalties on companies that illegally fire workers for pro-union activity, and allowing organizing through a streamlined card check process. Separately, Biden and House Democrats have lined up behind a Public Service Freedom to Negotiate Act that would bolster public sector workers' collective bargaining rights. "

    https://www.vox.com/2020/5/26/21257648/joe-biden-climate-economy-tax-plans

    One of the big issues here is Biden not committing to killing the filibuster, in addition to Dem Senators not in agreement either. That would be a disaster for any legislation.

    Makes sense not to run on ending the filibuster now, as there is a chance trump can win and teh GOP keeps the Senate. But if the opposite happens and Biden wins and Dems take the Senate, they will have to pivot quickly to getting rid of the filibuster. Apply any and all possible pressure to those Dem Senators who do not agree with that. Threaten them with losing committee posts; primary opponents; the kitchen sink.

    Yes, it poses a risk in the event the Reps get a trifecta again, but it is time to flood progressive legislation into law, and getting rid of the filibuster is the only way.

    And if they can hit the trifecta and bring this platform to fruition, they won't have to worry about a GOP trifecta for a long, long time. Possibly forever.

  • anne , May 31, 2020 1:56 pm

    https://scholar.harvard.edu/files/glaeser/files/why_doesnt_the_u.s._have_a_european-style_welfare_state.pdf

    September, 2001

    Why Doesn't the United States Have a European-Style Welfare State?
    By Alberto Alesina, Edward Glaeser and Bruce Sacerdote

    Abstract

    European countries are much more generous to the poor relative to the US level of generosity. Economic models suggest that redistribution is a function of the variance and skewness of the pre-tax income distribution, the volatility of income (perhaps because of trade shocks), the social costs of taxation and the expected income mobility of the median voter. None of these factors appear to explain the differences between the US and Europe. Instead, the differences appear to be the result of racial heterogeneity in the US and American political institutions. Racial animosity in the US makes redistribution to the poor, who are disproportionately black, unappealing to many voters. American political institutions limited the growth of a socialist party, and more generally limited the political power of the poor.

  • rick shapiro , May 31, 2020 2:07 pm

    This dynamic is not limited to low-skill jobs. I have seen it at work in electronics engineering. When I was a sprat, job shoppers got an hourly wage nearly twice that of their company peers, because they had no benefits or long-term employment. Today, job shoppers are actually paid less than company engineers; and the companies are outsourcing ever more of their staffing to the brokers.
    Without labor market frictions, the iron law of wages drives wages to starvation levels. As sophisticated uberization software eliminates the frictions that have protected middle class wages in the recent past, we will all need to enlist unionization and government wage standards to protect us.

  • ken melvin , May 31, 2020 2:29 pm

    Rick

    The big engineering offices of the 70s were decimated and worse by the mid-90s; mostly by the advent of computers w/ software. One engineer could now do the work of 10 and didn't need any draftsman.

  • rick shapiro , May 31, 2020 2:40 pm

    I was speaking of engineers with equal skill in the same office. Many at GE Avionics were laid off, and came back as lower paid contract empoyees.

  • ken melvin , May 31, 2020 2:46 pm

    Rick

    Die biden

  • ken melvin , May 31, 2020 2:52 pm

    beiden

    The both

  • ken melvin , May 31, 2020 3:05 pm

    EMichael

    Minimum wage, the row about the $600, all such things endanger the indentured servant economic model so favored in the south. Keep them poor and hungry and they will work for next to nothing. 'Still they persist.' On PBS, a black woman cooking for a restaurant said that she was being paid less than $4/hr.

  • anne , May 31, 2020 4:48 pm

    https://www.latimes.com/opinion/story/2020-05-30/dont-understand-the-protests-what-youre-seeing-is-people-pushed-to-the-edge

    May 30, 2020

    Don't understand the protests? What you're seeing is people pushed to the edge
    By KAREEM ABDUL-JABBAR – Los Angeles Times

    What was your first reaction when you saw the video of the white cop kneeling on George Floyd's neck while Floyd croaked, "I can't breathe"?

    If you're white, you probably muttered a horrified, "Oh, my God" while shaking your head at the cruel injustice. If you're black, you probably leapt to your feet, cursed, maybe threw something (certainly wanted to throw something), while shouting, "Not @#$%! again!" Then you remember the two white vigilantes accused of murdering Ahmaud Arbery as he jogged through their neighborhood in February, and how if it wasn't for that video emerging a few weeks ago, they would have gotten away with it. And how those Minneapolis cops claimed Floyd was resisting arrest but a store's video showed he wasn't. And how the cop on Floyd's neck wasn't an enraged redneck stereotype, but a sworn officer who looked calm and entitled and devoid of pity: the banality of evil incarnate.

    Maybe you also are thinking about the Karen in Central Park who called 911 claiming the black man who asked her to put a leash on her dog was threatening her. Or the black Yale University grad student napping in the common room of her dorm who was reported by a white student. Because you realize it's not just a supposed "black criminal" who is targeted, it's the whole spectrum of black faces from Yonkers to Yale.

    You start to wonder if it should be all black people who wear body cams, not the cops.

    What do you see when you see angry black protesters amassing outside police stations with raised fists? If you're white, you may be thinking, "They certainly aren't social distancing." Then you notice the black faces looting Target and you think, "Well, that just hurts their cause." Then you see the police station on fire and you wag a finger saying, "That's putting the cause backward."

    You're not wrong -- but you're not right, either. The black community is used to the institutional racism inherent in education, the justice system and jobs. And even though we do all the conventional things to raise public and political awareness -- write articulate and insightful pieces in the Atlantic, explain the continued devastation on CNN, support candidates who promise change -- the needle hardly budges.

    But COVID-19 has been slamming the consequences of all that home as we die at a significantly higher rate than whites, are the first to lose our jobs, and watch helplessly as Republicans try to keep us from voting .

    run75441 , May 31, 2020 9:39 pm

    anne:

    If you rcomments are not appearing they are going to spam, Just let me know and I will fish them out of spam. Just approved 4 of yours.

  • Bert Schlitz , May 31, 2020 7:14 pm

    The protests are self centered crap blacks do year after year. Considering 370 whites over 100 Latinos were killed by cops, many as bad as that guy in minnie. Blacks have a Trumptard mentality. We have a ecological disaster, a economic disaster and pandemic(when th they are spreading). Yet let's whine about one bad cop related homicide.

    This may begin the breakup of the Democratic party and the blacks. The differences are just to large.

  • Kaleberg , May 31, 2020 9:40 pm

    It's rather sad that it takes a massive civil disturbance to get the authorities to arrest a man videotaped killing another. You'd think that would just happen as a matter of course, but that's how it works in this country. Post Comment Leave a Reply Cancel reply

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    [May 29, 2020] It s not a civil war until the *other* civilians start shooting at the rioters

    May 29, 2020 | www.moonofalabama.org

    Richard Steven Hack , May 29 2020 13:54 utc | 18

    It's not a civil war until the *other* civilians start shooting at the rioters. At this point, it's just the usual police repression.

    Now given that thousands of people who previously never owned a firearm have now acquired them - although it is unclear how many of them will be concealed carriers, given the variance in state laws - it's only a matter of time before some people start shooting. Like the Korean shop owners in LA notably did during the Rodney King riots IIRC.

    But it won't be a civil war until a significant number of people on both sides are actually shooting.

    There's a guy named Selco Begovic who survived the civil war in Bosnia. He writes articles for prepper Web sites and he has book out. He has vividly described conditions of life in a civil war. Most people in the US are not going to handle that sort of thing well. Try this one as it pertains to b's post.

    How the SHTF in Bosnia: Selco Asks Americans, "Does this sound familiar?"

    Trisha , May 29 2020 15:02 utc | 32

    The true enemies of humanity are corporations, so the violence is not a "civil war", but revolt. Along those lines, it's not "looting" but sabotage. And the "police" are not peace-keepers but militarized enforcers.

    It's a complete waste of time engaging in electoral "politics." Politicians are corporate whores doing their master's bidding, as are the "police."

    Thanks b, for another incisive post.

    Nemesiscalling , May 29 2020 16:07 utc | 44
    Blacks occupy a disproportionate piece of those in poverty.

    Poverty breeds a lot of different evils and many of them are self-defeating cycles.

    ... ... ...

    karlof1 , May 29 2020 21:26 utc | 90
    Just finished listening to the latest interview given by Michael Hudson , "Defining a Tyrant," whose focus is on the necessity of applying debt forgiveness to those residing within the Outlaw US Empire as the economic affects of COVID-19 will be much worse than we've already seen. Those who want to get to the current moment can begin listening at the 40 minute mark (yes, it's just audio). You'll need to note that the unemployment numbers as I've been writing for awhile now are greatly understated, although the host Gary Null does allude to that reality as NYC itself is emptying out--imagine Wall Street sitting in the middle of a ghost metropolis. As you'll learn, Trump's MAGA Mantra is 100% hollow without enacting a wide ranging debt write-off--even if factories could be put back into business, the Outlaw US Empire's economy would still remain very uncompetitive because of the issue of debt service and privatized health care--issues I've written about before.

    And so the main topic: Civil War. Or, is it? Reality demands it be named Class War, for that's what it is in reality. Hudson maps out how its done and by whom while naming the abettors. The Popular Forces number 280 million, not including those too young/old/infirm to bear arms. The Forces of Reaction minus the paid forces of coercion number well under 100,000. Even adding in police and military, it's still 280 million to perhaps 10 million. And even if only half of the 280 million stand up, that's 140 million. The rallying cry ought to be It's better to die standing up for your rights versus groveling on your knees. Too bad all of the above's too large for one Tweet.

    willie , May 29 2020 21:31 utc | 91
    The way they provoked the violence on smashing shop windows with forehammer is exactly what was witnessed inParis when apparent "black block" types did the same and then got back in their policevan.
    I note that in France Riot police is clad in robocop armour and that this armour is a weapon in itself,it deshumanizes the man inside to himself,and to others.A strike of his arm is much more powerful than if he were dressed as your american cop on patrol,probably they give them steroid or something to be able to move rapidly with all the weight.They must feel like the Hulk!

    Now it would be a sign of peaceful government if just any political party would make a ban on those outfits.

    vinnieoh , May 29 2020 21:51 utc | 93
    So the medical examiner concluded that there was no evidence of choking or suffocation, and instead was the result of his "restraint" exacerbating underlying conditions, and suggesting there was the possibility of intoxication or drugs, which is the basis for the pre-determination that Chauvin will only be charged with 3rd degree murder, which of course they'll try to whittle down to manslaughter (the coincidental charge.)

    Let me see if I've got this straight: a man that is being restrained by the neck, who eventually dies from no other action, who repeatedly pleads that "I can't breath," who onlookers see and record that the man can not in fact breath, and the medical examiner finds no evidence of choking or strangulation.

    Further, Officer Chauvin, in close physical contact with the eventual corpse of his victim, must surely have felt the life ebbing from George Floyd. No way no how this mother fucker gets charged with anything other than 1st degree murder. His accomplices get charged with accessory to 1st degree murder.

    Dr Wellington Yueh , May 29 2020 21:59 utc | 97
    Note to peaceful protestors: CAPTURE THE PROVOCATEUR!!!!!

    If you see somebody doing this shit, don't wag your finger at him, get that fucker and firmly-but-peacefully eject him from the crowd.

    CitizenX , May 29 2020 22:10 utc | 102
    Do yourself a favor and read-

    "War is a Racket" -Smedley Butler 1933
    "Beyond Vietnam - Time to Break the Silence" -MLK 1967
    "Art Truth and Politics" -Harold Pinter 2005

    What has changed in 100 yrs of uSSa Empire? Foreign policy? Domestic policy?
    Economic policy? All have become worse.

    The u$$a Regime lies, cheats, steals, rapes, murders, tortures, overthrows, bombs,
    invades, destroys, and loots with impunity Global wide.
    How a citizen of this Rogue nation can feel good about that is beyond hypocrisy.

    This Regime and the humans behind this sickening system must be replaced.
    The Military Surveilance Police state must end. The Humans behind this system must be replaced
    by any means necessary. Both the safety of the world and domestically rely on their removal.

    When finished "Entertaining Ourselves to Death" and coming to terms with the truly Evil nature of the human beings operating and supporting this system- perhaps you will becomea full human being. Get Up Stand Up.

    The difference between ignorance and delusions are substantial.
    Ignorance being the lack of knowledge. Delusion being the presence of false
    knowledge. Where do you stand?

    I don't need protection from the police.
    But We ALL need protection FROM the police state.
    Will you fight to defend yourself, your family, your neighbor or fellow human being
    against a cruel vile corrupt system? Selfishness and greed are no excuse for complacency.
    What is worth defending- your property or your virtues?

    I have long been disgusted by the u$$a regimes domestic and foreign policies. Which means I have long been disgusted by my fellow citizens (human beings) which support and operate this vile system.

    Revolution-
    Complacency and passive complicit citizens Or values, humaneness and justice?

    Where do you stand? When do you stand for a meaningful life of society?

    lysias , May 29 2020 22:24 utc | 106
    The white working and lower middle classes will not support violent rioting by blacks over a black issue. This is not a way to start a revolution.

    What's more, the latest reporting I read in the Washington Post is that Floyd initially resisted arrest. The early reporting that he did not resist arrest was apparently incorrect.

    Moreover, the medical evidence suggests that he died not from asphyxiation or a broken neck, but because of comorbidities.

    Floyd had a lengthy criminal record.

    If you want a revolution in the U.S., wait a month or two until there are mass evictions.

    H.Schmatz , May 29 2020 22:30 utc | 108
    It seems that the revolution will not happen after all, just has been declared curfew...

    This is a warning to anybody who would dare to revolt against the coming misery conditions of life while the oligarchs continue enriching themselves and looting every penny available.

    This is a secondary gain from the pandemic, as we were accustomed to multiple declared state of alarm throughout the world, they thinks that going a step further would not cause any shock....

    There have been equally violent revolts in France and Chile continuously during the past year, and in France again in the banlieus, and then curfew was not declared...

    This is the land of the free....There you have your fascist state turning on yourselves...
    When they came for the Venezuelans, seized their assets and embassies, I did nothing; when they came for the Iranians and murdered Soleimani, I said nothing; when they came for the communists in the Odessa House of Unions, I did not move a finger; when they slaughtered people at the four cardinal points of the world, I did continue living my "American Dream" as if the thing would not go with me...until I did awaken to find myself in the same nightmare....

    https://twitter.com/edukabak/status/1266055032883023872/photo/1

    Do you think that were not for the riots of the last nights, Chauvin would had been detained and charged?

    Richard Steven Hack , May 29 2020 22:50 utc | 112
    I've suggested in the past that civil war was unlikely in the US because that would requires a significant percentage of the electorate to actually take sides and shoot someone - and most of the population is so anti-gun these days that such a scenario was unlikely, especially over political issues that aren't usually considered as *directly* adversely affecting most of the population, at least in their minds. It would also require some direct organization on both sides and I don't see anyone capable of that on the national scene.

    What I can easily see happening, however, is the sort of multi-city, large-scale rioting that occurred in the Sixties and in other parts of the world, leading to a declaration of martial law in at least some, possibly many, larger cities, if not nation-wide (a lot of rural areas would likely not be affected.) Economic issues and issues of social repression are usually the causes of large-scale violence historically in most countries. Most "political" issues usually boil down to either ethnic or economic or repression issues.

    The US doesn't have really that much ethnic issues, except in the Southwest over Latino immigration. The US has racial, economic and repression issues, however. Most of the time they just simmer, with local limited outbreaks of violence. But in cases of blatant repression, or under severe economic pressure, they can explode into wider-scale violence.

    And we've got both on the horizon. The impact of the pandemic (and the government's clueless response, thanks to Trump and previous Presidents) on the economy is likely to produce extreme economic pressure, especially on the middle class and the poor. Adding the extreme militarization of the US police over the last several decades, and this is a recipe for large-scale violence that continues for more than a few days or a week. Once police over-reaction and the appearance of the National Guard to control rioting results in the sort of deaths like in the well-known Kent State incident, then like in Ukraine we could start to see cops and National Guard fatalities from snipers. Next we could see things like the 1985 Philadelphia police bombing of the MOVE headquarters and the use of armed drones (Connecticut has a law banning armed drones - but not for police.) The next step beyond that is curfew, and the next step beyond that is martial law.

    The next step beyond that is not civil war - it's explicit fascism. And that ends in revolution - which then usually recycles into either more fascism or "modified: fascism (see France in the 1800's.)

    Bottom line: It's not going to get better. One of the many things preppers have been warning against is national repression. They warned against natural disasters like hurricanes and no one listened until Katrina. They warned against pandemics and no one listened - until today. They've been warning against national repression - like the Selco article I linked to. Better listen this time.

    The US government has been preparing for some time:
    Pentagon preparing for mass civil breakdown

    Maybe you should: How To Prepare for Civil Unrest: 30 Steps You Can Take Now

    [May 29, 2020] Trump's Tax Cuts Get an "F" for enriching the Globalist Elite by Michael Cuenco

    Highly recommended!
    Notable quotes:
    "... Instead of reining in the "globalist elites" he so vociferously ran against or those corporations "who have no loyalty to America," his one legislative achievement has been to award them a massive tax cut. Through it, he has maintained their favorite mix of low revenue intake and high deficits which gives Republicans a pretext to "starve the beast" and induce fiscal anorexia. ..."
    "... Trump ran as a populist firebrand -- a fusion of Huey Long and Ross Perot -- and while he never abandoned that style, he has governed for the most part as a milquetoast free market Republican in perfect tandem with Paul Ryan and Mitch McConnell, one whose solution to everything is more tax cuts and deregulation: a kind of turbo-charged "high-energy Jeb." ..."
    "... With the outbreak of COVID-19, many on the reformist right are hoping for the emergence of the President Trump they thought they were promised, a leader just as ready to break out of the donor-enforced "small government" straitjacket while in power as he was during the campaign. ..."
    "... The heightened rhetoric against China will continue -- the one thing Trump is good at -- but it is unlikely to be matched with the required policy ..."
    "... If neoliberalism excused inequality at home by extolling the equalization of incomes across the globe (millions of Chinese raised from poverty, while millions of American workers fall back into it!), the new position must shift emphasis back to ensuring a more equitable domestic distribution of wealth and opportunity across all classes and communities in this country. ..."
    "... It is worth pondering what might have happened if the administration had gone the other way and followed the last piece of policy advice given by Steve Bannon before his ouster in August 2017. Bannon suggested raising the top marginal income tax rate to 44 percent while "arguing that it would actually hit left-wing millionaires in Silicon Valley, on Wall Street, and in Hollywood." ..."
    "... It might well have put Trump on the path to becoming what Daniel Patrick Moynihan once proposed as a model for Richard Nixon when he gifted the 37th president a biography of Disraeli, namely a Tory Republican who could outsmart the left by crafting broad popular coalitions based on a blending of patriotic cultural conservatism with class-conscious economic and social policy. ..."
    "... Then and even more so now, the idea resonates: a Reuters/Ipsos poll from January found that 64 percent of Americans support a wealth tax, a majority of Republicans included. Poll after poll has reaffirmed this. It seems as if there is right-wing populist support for taxing the rich more. ..."
    "... There is one more thing to be said about the significance of taxing the rich. Up until very recently, there has been a prevailing tendency among the reformist right (with some important exceptions) to couch criticism of the elites primarily or even exclusively in cultural terms. There seems to have been a polite hesitation at taking the cultural critique to its logical economic conclusions. It is easy to excoriate the excesses of elite identity politics, the "woke" part of woke capitalism; it's something all conservatives -- and indeed growing numbers of liberals and socialists -- agree on. Fish in a barrel. ..."
    "... But to challenge the capitalism part, i.e. free market orthodoxy, not in a secondary or tertiary way, but head on and in specific policy terms as Lofgren and a few others have done, would involve confronting difficult truths, namely that the biggest beneficiaries of tax cuts and Reaganite economic policy in general, which most conservatives enthusiastically promoted for four decades, are the selfsame decadent coastal elites they claim to oppose. It is they who more than anyone else thrive on financialized globalization, arbitrage and offshoring. ..."
    "... In other words, it amounts to an honest recognition of the complicity of conservatism in the mess we're in, which is perhaps a psychological bridge too far for too many on the right, reformist or not. (Trigger Warning!) This separation of culture and economics has led to the farce of a self-styled nationalist president lining the pockets of his nominal enemies, the globalist ruling class. ..."
    "... A conservative call to tax the rich would signal that the right is ready to end this charade and chart a course toward a more patriotic, public-spirited and yes, proudly hyphenated capitalism. ..."
    "... Michael Cuenco is a writer on politics and policy. He has also written for American Affairs. ..."
    May 26, 2020 | www.theamericanconservative.com

    They also left worker wages stagnant and increased the deficit. Where is our more nationalist economic policy?

    Much has been written about the disappointment of certain segments of the right in the apparent capitulation of Donald Trump to the agenda of the conservative establishment.

    Instead of reining in the "globalist elites" he so vociferously ran against or those corporations "who have no loyalty to America," his one legislative achievement has been to award them a massive tax cut. Through it, he has maintained their favorite mix of low revenue intake and high deficits which gives Republicans a pretext to "starve the beast" and induce fiscal anorexia.

    The president has granted them as well their ideal labor market through an ingenious formula: double down on mostly symbolic raids (as opposed to systemic solutions like Mandatory E-Verify) and ramp up the rhetoric about "shithole countries" to distract the media, but keep the supply of cheap, exploitable low-skill labor (legal and illegal) intact for the business lobby.

    Trump ran as a populist firebrand -- a fusion of Huey Long and Ross Perot -- and while he never abandoned that style, he has governed for the most part as a milquetoast free market Republican in perfect tandem with Paul Ryan and Mitch McConnell, one whose solution to everything is more tax cuts and deregulation: a kind of turbo-charged "high-energy Jeb."

    With the outbreak of COVID-19, many on the reformist right are hoping for the emergence of the President Trump they thought they were promised, a leader just as ready to break out of the donor-enforced "small government" straitjacket while in power as he was during the campaign.

    Despite signs of progress, what's more likely is a return to business as usual. Already the GOP's impulse for austerity and parsimony is proving to be stronger than any willingness to think and act outside the box.

    The heightened rhetoric against China will continue -- the one thing Trump is good at -- but it is unlikely to be matched with the required policy, such as a long-term plan to reshore U.S. industry (that doesn't just rely on blindly giving corporations the benefit of the doubt). At this point, we already know where the president's priorities lie when given a choice between the advancement of America's workers or continued labor arbitrage and carte blanche corporate handouts.

    Lest they be engulfed by it like everyone else, the reformist right should ask: is there any way to stand athwart the supply-side swamp yelling Stop?

    Many of these conservatives lament the Trump tax cut not just because it was a disaster that failed to spark reinvestment, left wages stagnant, needlessly blew up the deficit and served as a slush fund for stock buybacks, but more fundamentally because it betrayed the overwhelming intellectual inertia and lack of imagination that characterizes conservative policymaking.

    More than in any other issue then, a distinct position on taxes would make the new conservatism truly worth distinguishing from the old: tax cuts were after all the defining policy dogma of the neoliberal Reagan era.

    If neoliberalism excused inequality at home by extolling the equalization of incomes across the globe (millions of Chinese raised from poverty, while millions of American workers fall back into it!), the new position must shift emphasis back to ensuring a more equitable domestic distribution of wealth and opportunity across all classes and communities in this country.

    A reformulation of fiscal policy along populist economic nationalist lines can help with that.

    It is worth pondering what might have happened if the administration had gone the other way and followed the last piece of policy advice given by Steve Bannon before his ouster in August 2017. Bannon suggested raising the top marginal income tax rate to 44 percent while "arguing that it would actually hit left-wing millionaires in Silicon Valley, on Wall Street, and in Hollywood."

    Such a move would have been nothing short of revolutionary: it would have been a faithful and full-blown expression of the populist economic nationalism Trump ran on; it would have presented a genuine material threat to the elite ruling class of both parties, and likely would have pre-empted the shock value of Alexandria Ocasio-Cortez proposing a 70 percent top marginal rate.

    It might well have put Trump on the path to becoming what Daniel Patrick Moynihan once proposed as a model for Richard Nixon when he gifted the 37th president a biography of Disraeli, namely a Tory Republican who could outsmart the left by crafting broad popular coalitions based on a blending of patriotic cultural conservatism with class-conscious economic and social policy.

    Not that Trump would have needed to go back to Nixon or Disraeli for instruction on the matter. In 1999, long before Elizabeth Warren came along on the national scene, a presidential candidate eyeing the Reform Party nomination contemplated the imposition of a 14.25 percent wealth tax on America's richest citizens in order to pay off the national debt: his name was Donald Trump.

    What ever happened to that guy? The Trump of 1999 was onto something. Maybe this could be a way to deal with our post-pandemic deficits.

    Then and even more so now, the idea resonates: a Reuters/Ipsos poll from January found that 64 percent of Americans support a wealth tax, a majority of Republicans included. Poll after poll has reaffirmed this. It seems as if there is right-wing populist support for taxing the rich more.

    To the common refrain, "the rich are just going to find ways to shelter their income or relocate it offshore," I have written elsewhere about the concrete policy measures countries can and have taken to clip the wings of mobile global capital and prevent such an outcome.

    I have written as well about how taxing the rich and tightening the screws on tax enforcement have implications that go beyond the merely redistributive approach to fiscal policy conventionally favored by the left; about how it can be a form of leverage against an unaccountable investor class used to shopping at home and abroad for the most opaque assets in which to hoard vast amounts of essentially idle capital.

    A deft administration would use aggressive fiscal policy as an inducement for this irresponsible class to make things right by reinvesting in such priorities as the wages and well-being of workers, the vitality of communities, the strength of strategic industries and the productivity of the real economy – or else Uncle Sam will tax their wealth and do it for them.

    It would also be an assertion of national sovereignty against globalization's command for countries to stay "competitive" by immiserating their citizens with ever-lower taxes on capital holders and ever more loose and "flexible" labor markets in a never-ending race to the bottom.

    Mike Lofgren has penned a marvelous essay in these pages about the virtual secession of the rich from the American nation, "with their prehensile greed, their asocial cultural values, and their absence of civic responsibility."

    What better way to remind them that they are still citizens of a country and members of a society -- and not just floating streams of deracinated capital -- than by making them perform that most basic of civic duties, paying one's fair share and contributing to the commonweal? America need not revert to the 70-90 percent top marginal rates of the bolshevik administrations of Truman, Eisenhower or Kennedy, but proposals for modest moves in that direction would be welcome.

    There is one more thing to be said about the significance of taxing the rich. Up until very recently, there has been a prevailing tendency among the reformist right (with some important exceptions) to couch criticism of the elites primarily or even exclusively in cultural terms. There seems to have been a polite hesitation at taking the cultural critique to its logical economic conclusions. It is easy to excoriate the excesses of elite identity politics, the "woke" part of woke capitalism; it's something all conservatives -- and indeed growing numbers of liberals and socialists -- agree on. Fish in a barrel.

    But to challenge the capitalism part, i.e. free market orthodoxy, not in a secondary or tertiary way, but head on and in specific policy terms as Lofgren and a few others have done, would involve confronting difficult truths, namely that the biggest beneficiaries of tax cuts and Reaganite economic policy in general, which most conservatives enthusiastically promoted for four decades, are the selfsame decadent coastal elites they claim to oppose. It is they who more than anyone else thrive on financialized globalization, arbitrage and offshoring.

    In other words, it amounts to an honest recognition of the complicity of conservatism in the mess we're in, which is perhaps a psychological bridge too far for too many on the right, reformist or not. (Trigger Warning!) This separation of culture and economics has led to the farce of a self-styled nationalist president lining the pockets of his nominal enemies, the globalist ruling class.

    Already, the White House is proposing yet another gigantic corporate tax cut. Using the exact same discredited logic as the last one, senior economic advisor Larry Kudlow wants Americans to trust him when he says that halving the already lowered 2017 rate to 10.5 percent will encourage these eminently reasonable multinationals to reinvest. There he goes again.

    A conservative call to tax the rich would signal that the right is ready to end this charade and chart a course toward a more patriotic, public-spirited and yes, proudly hyphenated capitalism.

    Michael Cuenco is a writer on politics and policy. He has also written for American Affairs.


    Kent 3 days ago

    "America need not revert to the 70-90 percent top marginal rates of the bolshevik administrations of Truman, Eisenhower or Kennedy, but proposals for modest moves in that direction would be welcome."

    Those tax rates were offset by direct investment in the US economy. So if I invested in the stock market, I'd get a 90% tax rate because that doesn't produce actual wealth. On the other hand, if I invested in building factories that created thousands of jobs for American citizens, my tax rate may fall to 0%. And those policies created a fantastic economy that we oldsters remember as the golden age. That wasn't bolshevism, it was competitive capitalism. What we have today is libertarianism. And as long as conservatives are going to let the libertarian boogey-man's nose under the tent, we are going to have this ugly, bifurcated economy. Your choice. Man up.

    Winston Nevis Kent 3 days ago • edited
    You ever tell hear of sarcasm, bud? I think that's what the author was going for. Don't think he was trying to say that Ike and Truman were Bolsheviks but was rather making fun of libertarians who hyperbolically associate high tax rates with socialism and Soviet Communism...
    K squared Winston Nevis 3 days ago
    Plenty of goldwater's supporters in 1964 called President Eisenhower a communist
    GAguilar K squared 2 days ago
    Particularly the John Birchers, including my parents!
    SKPeterson Kent 3 days ago • edited
    We absolutely do not have libertarianism operating in this country today. There is simply no evidence that there is any sort of libertarian economic or political system in place. Oh sure, you'll whine "but globalism without actually defining what globalism is, or what is wrong about precisely, but just that it's somehow wrong and that libertarians are to blame for it. There's a good word for such an argument: bullshit.
    We have an economy that is extraordinarily dominated by the state via mandates, regulations, and monetary interference that is most decidedly not libertarian in any way whatsoever. The current system though does create and perpetuate a system of rent-seeking cronies who conform rather nicely to the descriptions of said actors by Buchanan and Tullock. The problems of the modern economy are the result of state interference, not its absence, and Cuenco's sorry policy prescriptions do nothing to minimize the state but instead just create a different set of rent-seeking cronies for which the wealth and incomes of the nation are to be expropriated.
    marku52 SKPeterson 3 days ago
    O dear, No True Scotsman....
    SKPeterson marku52 2 days ago
    If you can point to how the current situation is in any way "libertarian" without creating your own perfect little lazy straw man definition then by all means do so. Until then your retort is without
    substance (you see a no true Scotsman reply doesn't work if the facts are in the favor of the person supposedly making such an argument. Here you fail to establish why what I said is such a case; saying it doesn't make it so). When Kent makes some throwaway comment that we're somehow living in some sort of libertarian era he's full of it, you know it, and all you can do is provide some weak "no true Scotsman" defense? Come on and man up, stop appealing to artificial complaints of fallacious argumentation, and give me an actual solid argument with evidence beyond "this is so libertarian" that we're living in some libertarian golden age that's driving the oppression of the masses.
    cka2nd SKPeterson 3 days ago
    Busted unions, contracting out and privatization, deregulation of vast swaths of the economy since the late 1970's (Jimmy Carter has gotten kudos from libertarian writers for his de-regulatory efforts), lowered tax rates, especially on financial speculation and concentrated wealth, a blind eye or shrugged shoulder to anti-trust law and corporate consolidation. Yeah, nothing to see here, no partial victories for the libertarian wings of the ruling class or the GOP, at all. The Koch Brothers accomplished nothing, absolutely nothing, since David was the Libertarian Party's nominee for Vice President in 1980; all that money gone to waste. Sure.
    SKPeterson cka2nd 2 days ago
    So, now some sort of "partial victory" means we're living in some sort of libertarian era? And what exactly was so wonderful about all the things you listed being perpetuated? So, union "busting" is terrible, but union corruption was a great part of our national solidarity and should have been protected? Deregulation of vast swathes of the economy? You mean the elimination of government controlled cartels in the form of trucking and airlines? You mean the sorts of things that have enabled the working class folks you supposedly favor to travel to places that were previously out of reach for them and only accessible to the rich for their vacations? Yes, that's truly terrible. Again, you're on the side of the little guy, right? Lowered taxes? Are you seriously going to argue that the traditional conservative position has been for high tax rates? What are taxes placed upon? People and property. What do conservatives want to protect? People and property. So... arguing for higher taxes or saying that low taxes are bad or even especially, libertarian, is really going off the rails. That's just bad reasoning. And regarding financialization, those weren't especially libertarian in their enacting, but rather flow directly out of the consequences of the modern Progressive implementation of neo-Keynesian monetary and fiscal policy. Suffice it to say, I don't think you'll find too many arguments from libertarians that the policies encouraging financialization were good or followed libertarian economic policy prescriptions. Moreover, they led entirely to the repulsive "too big to fail" situation and if there's one thing that libertarians hold to is that there is no such thing (or shouldn't be) as "too big to fail." The objection to anti-trust law is that it was regularly abused and actually created government-protected firms that harmed consumers. If you think anti-trust laws are good things and should be supported by conservatives then by all means encourage Joe Biden to have Elizabeth Warren as his vice-presidential running mate and go vote Democrat this fall.
    Blood Alcohol SKPeterson 3 days ago
    "The problems of the modern economy are the result of state interference, not its absence". That's because the "state interference" is working as proxy for the interests of vulture capitalist.

    What we have today is vulture capitalism as opposed to free enterprise capitalism.

    DUNK Blood Alcohol 2 days ago • edited
    You could also call it "crony capitalism" or "inverted totalitarianism".

    Chris Hedges: "Sheldon Wolin and Inverted Totalitarianism" (November 2, 2015)

    GAguilar DUNK 2 days ago
    Princeton professor Sheldon Wolin's excellent book is entitled, "Democracy Incorporated."

    He lays out how we're living in a totalitarian, capitalist surveillance state, as if that's not already obvious to most people around here.

    SKPeterson Blood Alcohol 2 days ago
    Exactly. The existence of a vulture capitalist or crony capitalist economy, which we have in many sectors, is evidence that "libertarianism" is nothing more than a convenient totem to invoke as a rationale for complaint against the outcomes of the existing crony capitalist state of affairs. My contention is that Cuenco, et al are simply advocating for a replacement of the cronies and vultures.
    1701 3 days ago
    A very similar article(but probably coming at it from a slightly different angle) wouldn't look out of place in a socialist publication.
    The culture war really is a pointless waste of time that keeps working class people from working towards a common solution to shared problems.
    bumbershoot 3 days ago
    Trump wants to "keep the supply of cheap, exploitable low-skill labor (legal and illegal) intact for the business lobby."

    Well of course he does -- otherwise how would he staff Mar-A-Lago and other Trump Organization businesses?

    SKPeterson 3 days ago
    I used to think that conservatism was about protecting private property and not, like Cuenco, in coming up with ever more excuses for expropriating it.
    Kent SKPeterson 3 days ago
    No, that's libertarianism (or more properly propertarianism). Conservatism is first and foremost about responsibility to God, community, family and self. Property is only of value in its utility towards a means.
    GAguilar Kent 2 days ago • edited
    As I see it, here are examples of how "conservatives" have actually practiced their "responsibility to God, community, family and self":

    The genocide of Native Americans
    The slavery and murder of blacks

    Their opposition to child labor laws, to womens' suffrage, etc.
    Their support of Jim Crow laws
    Their opposition to ending slavery and opposition to desegregation
    Opposition to Civil Liberties Laws

    Willingness to block, or curtail, voting rights.

    Hyping the "imminent threat" of an ever more powerful communist menace bearing
    down on us from the late 40s to the "unanticipated" collapse of the
    USSR in '91. All of which was little more than endless "threat inflation" used
    by our defense industry-corporate kleptocrats to justify monstrous increases
    in deficits that have been "invested" in our meddlesome, murderous militarism all around the world, with the torture and deaths of millions from S. E. Asia, to Indonesia, to Latin America, to the Middle East, to Africa, etc.

    Violations of privacy rights (conservative hero J. Edgar Hoover's illegal domestic surveillance and acts of domestic terrorism, "justified" by
    his loopy paranoia about commies on every corner and under every bed.)

    Toppling of democracies to install totalitarian despots in Iran
    ("Ike" '53), Guatemala (Ike, again, '54), Chile (Nixon '73), Brazil (LBJ, '64) and many, many more countries.

    Strong support of the Vietnam War, the wars in Laos and Cambodia, and the Iraq War, which, according to conservative W. Bush, God had inspired.

    The myriad "dirty wars" we've fought around the world, and not only in Latin America.

    With a few, notable exceptions, conservatives have routinely been on the wrong side of these issues. For the most part, it has been the left, particularly the "hard left," that has gotten it right.

    AdmBenson SKPeterson 2 days ago
    "conservatism was about protecting private property"

    You're conflating conservatism and libertarianism. Conservatives realize they are citizens of a country. Libertarians wish they weren't.

    SKPeterson AdmBenson 2 days ago
    So conservatism should be entirely about taking people's property "for the good of the country"? That the purpose of a country is to loot the people? That the people exist for the government and not the government for the people? Seems Edmund Burke and Russell Kirk would like to have a word with you Adm.

    To quote Kirk as just one example of your fundamental error:

    Seventh, conservatives are persuaded that freedom and property are closely linked . [Apparently, Adm. you dispute Kirk's assertion and accuse him thereby of conflating libertarianism and conservatism. Yes, I know Kirk was a hater of the idea of patriotism, but he was such a raging libertarian what else could he do?] Separate property from private possession, and Leviathan becomes master of all. Upon the foundation of private property, great civilizations are built. The more widespread is the possession of private property, the more stable and productive is a commonwealth. Economic levelling [this is the outcome of Cuenco's policy prescriptions by the way] , conservatives maintain, is not economic progress. Getting and spending are not the chief aims of human existence; but a sound economic basis for the person, the family, and the commonwealth is much to be desired.

    So, either "Mr. Conservative" Russell Kirk wasn't really a conservative but a man who horribly conflated libertarianism and conservatism, or we can say that Kirk was a conservative and that he recognized the protection of private property as crucial in minimizing the control and reach of the Leviathan state. If the latter holds, then maybe what we've established is that AdmBenson isn't particularly conservative.

    Winston Nevis SKPeterson 2 days ago • edited
    "The more widespread is the possession of private property, the more stable and productive is a commonwealth." This status quo has produced precisely the opposite of this. Wealth, assets, capital has been captured by the elite. The pitchforks are coming. See this CBO chart: View Hide
    AdmBenson SKPeterson 2 days ago
    Conservatives accept taxes as a part of citizenship. Since taxes can't be avoided, a conservative insists on democratic representation and has a general desire to get maximum bang for their taxpayer buck.

    Libertarians, on the other hand, see everything through the lens of an individual's property rights. Taxes and regulation are infringements on those rights, so a libertarian is always at war with their own government. They're not interested in bang for their taxpayer buck, they just want the government to go away. I can't fault people for believing this way, but I can point out that it is severely faulty as the operating philosophy beyond anything but a small community.

    As for me not being particularly conservative, ya got me. It really depends on time of day and the level of sunspot activity.

    SKPeterson AdmBenson 2 days ago
    Sunspots, eh? And here I thought it was your reliance on tinfoil.
    AdmBenson SKPeterson 2 days ago
    The tinfoil and the mask were scaring people. The tinfoil had to go, but that's had side effects.
    SKPeterson AdmBenson 2 days ago
    I should have put the /s on my reply, but your response did give me a good chuckle. Besides, for that finger pointing at you, there were three more pointing back at me.
    JMWB 3 days ago
    And somehow people continually fall for the Trickle Down economic theory. George HW Bush was correct when he called this VooDoo economics. Fiscal irresponsibility at it's finest.
    Victor_the_thinker JMWB 3 days ago
    Nah people don't fall for it, republicans do. The rest of us know this stuff doesn't work. We didn't need an additional datapoint to realize that. The Tax Cuts and Jobs act was the single most unpopular piece of legislation to ever pass since polling began. It never had support outside of the Republican Party which is why it's never had majority support.

    https://news.gallup.com/pol...

    Blood Alcohol JMWB 3 days ago
    John Kenneth Galbraith called Trickle Down "economics", "Oats and Horse Economics". If you feed the horse a lot of oats, eventually some be left on the road...
    Nelson 3 days ago
    The leader of Republicans isn't Trump. It's Mitch McConnell.
    J Villain Nelson 3 days ago
    Mitch is fully owned by Trump as is every republican that holds office except Romney. Mitch can't go to the bathroom with out asking Trumps permission.
    Nelson J Villain 3 days ago
    Mitch is owned by corporations and he likes it that way. He basically says as much whenever campaign finance reform pops up and he defends the status quo.
    aha! Nelson 2 hours ago
    Yep. The guy who declared war on the Tea Party. The guy who changed his tune entirely about China when he married into the family of a shipping magnate.
    SeekingTruth 3 days ago
    I'm eagerly awaiting a GOP plan for economic restructuring. I've been waiting for decade(s). Surely there is someone in the entire body of think tanks, congressional staffers, and political class that can propose a genuine and comprehensive plan for how to rebalance production, education, and technology for the better of ALL Americans. Surely...
    Tradcon SeekingTruth 3 days ago
    American Affairs (the policy journal this author writes for) and The American Compass are both very good.
    cka2nd SeekingTruth 3 days ago
    I honestly wonder if Jack Kemp might have had a "Road to Damascus" conversion away from his pseudo-libertarian and supply side economic convictions if he had lived through the decade after the Great Recession. Probably not, given his political and economic activity up until his death.
    Barry_II 3 days ago
    "They also left worker wages stagnant and increased the deficit. Where is our more nationalist economic policy?"

    In your dreams, just like those many large projects which Trump drove into bankruptcy.

    Right alongside the money owed to the many people he's stiffed.

    Name 3 days ago
    So after 30 years or more of " globalism" , the GOP is adopting Bernie Sanderism?
    Johnny Larue Name 3 days ago
    Uh, no.
    Name Johnny Larue 2 days ago
    Uh, it seems so. Did you even read?
    TheSnark 3 days ago • edited
    Trump pushed the tax cut because it saves him at least $20 million each year in taxes, probably closer to $50 million. That's the only reason he does anything, because he benefits personally.
    kouroi 3 days ago
    Thank you very much for posting the link to the wonderful essay by Mike Lofgren. Written 8 years ago it feels even more actual than then. I have bookmarked it for future reference.

    Looking at the US it always comes to my mind the way Rome and then Byzantium fell: a total erosion of the tax-base the rich refused to pay anything to the imperial coffers, and then some of the rich had land bigger than some modern countries... And then the barbarians came...

    Kent kouroi 3 days ago
    And, by then, the population welcomed the barbarians.
    kouroi Kent 3 days ago
    Likely true, with some exceptions... The Huns - and on that one I keep wondering if there isn't a whiff of "Yellow Peril" smell in all that outcry...
    Ray Woodcock kouroi 2 days ago • edited
    Lofgren: "What I mean by secession is a withdrawal into enclaves, an internal immigration, whereby the rich disconnect themselves from the civic life of the nation and from any concern about its well being except as a place to extract loot."

    That was in 2012, but that was what struck me about my well-to-do classmates when I transferred from Cal State Long Beach to Columbia University in 1977 . Suddenly I was among people who saw America, American laws, and a shared sense of civic responsibility as quaint, bothersome, rather tangential to the project of promoting oneself and/or one's special interest.

    kouroi Ray Woodcock 2 days ago
    Cold, eh mate? Reptiles, lizards...?
    Adriana Pena 3 days ago
    Did you ever hope that Trump would do what you wanted? You are adorable
    sam 3 days ago
    The only way that factories would come back is when Americans start buying made in America. We can't wait for ANY government to bring those factories and jobs ( and technology) . Only people voting with their pocketbooks can do it.
    J Villain 3 days ago
    Still waiting for the day the first American asks "What have WE done wrong?" Rather than just following in Trumps step and playing the victim card every step of the way and wondering why nothing gets better.
    Blood Alcohol J Villain 3 days ago
    nuffsaid. The blood is on everyone's hands.

    [May 28, 2020] US Lawmakers Propose Total Ban On STEM Visas For Chinese Students

    May 28, 2020 | www.zerohedge.com

    US Lawmakers Propose Total Ban On STEM Visas For Chinese Students by Tyler Durden Thu, 05/28/2020 - 10:45 As the White House prepares to eject Chinese graduate students with ties to the PLA, three US lawmakers are taking things a step further - proposing a bill which would ban mainland Chinese students from studying STEM subjects in the United States .

    Chinese and other international students wave flags at 2018 Columbia University commencement ceremony.

    Two senators and one House member said on Wednesday that the Secure Campus Act would bar Chinese nationals from obtaining visas for graduate or postgraduate studies in science, technology, engineering and mathematics. Students from Taiwan and Hong Kong would be exempt , according to SCMP .

    "The Chinese Communist Party has long used American universities to conduct espionage on the United States," said Sen. Tom Cotton (R-AK), one of the bill's sponsors, adding "What's worse is that their efforts exploit gaps in current law. It's time for that to end."

    "The Secure Campus Act will protect our national security and maintain the integrity of the American research enterprise."

    The proposed legislation comes as diplomatic relations have fractured between the world's two largest economies. The fissures started to show during a trade war that has been rumbling on for almost two years and have only widened amid accusations about the handling of the Covid-19 disease outbreak , and the treatment of ethnic minority groups in China.

    Hong Kong is the latest flashpoint after Beijing drew up a national security law that Washington says tramples on the city's mini-constitution. The US threatened retaliation over the move. -SCMP

    The bill will also tackle China's efforts to recruit talent overseas through their Thousand Talents Program , an operation launched in 2008 by the CCP which seeks out international experts in scientific research, innovation and entrepreneurship. It proposes that participants in China's recruitment of foreigners be made to register under the Foreign Agents Registration Act (FARA) , and would prohibit Chinese nationals and those participating in China-sponsored programs from receiving federal grants or working on federally funded R&D in STEM fields .

    Any university, research institute or laboratory receiving federal funding would be required to attest that they are not knowingly employing participants in China's recruitment programs - a list of which the US Secretary of State would publish.

    US law enforcement and educational agencies have raised red flags about undisclosed ties between federally funded researchers and foreign governments. A crackdown has included indictments and dismissals.

    In January, Charles Lieber, 60, chairman of the chemistry and chemical biology department at Harvard University, was arrested and charged for lying about his involvement in the Thousand Talents Programme . -SCMP

    Meanwhile, earlier this month a professor at the University of Arkansas who received millions of dollars in research grants, including $500,000 from NASA, was arrested and charged with one count of wire fraud.

    According to the FBI, Ang failed to disclose that he was getting paid by a Chinese university and Chinese companies in violation of university policy. He is accused of making false statements while failing to disclose his extensive ties to China as a member of the "Thousand Talents Scholars" program.

    63-year-old Simon Saw-Teong Ang is the director of the school's High Density Electronics Center, which received funding from the National Science Foundation (NSF), Department of Energy (DOE), Department of Defense (DOD) and NASA. Since 2013, Ang has been the primary investigator or co-investigator on US government-funded grants totaling over $5 million, according to the Washington Examiner .

    In November, the Senate Permanent Subcommittee on Investigations chaired by Sen. Rob Portman (R-OH) released a 109-page bipartisan report which concluded that foreign nations "seek to exploit America's openness to advance their own national interests," the most ambitious of which "has been China," according to the Examiner . According to the report, Chinese academics involved in their so-called 'Thousand Talents' program have been exploiting access to US research labs .

    Backlash

    According to SCMP , members of the US scientific community see the US as unfairly targeting Chinese colleagues , and that the campaigns will discourage talented individuals from pursuing studies at US universities.

    "While we must be vigilant to safeguard research, we must also ensure that the US remains a desirable and welcoming destination for researchers from around the world," wrote members of 60 groups - including the American Association for the Advancement of Science and the Federation of American Scientists, in a 2019 letter to science policy officials.

    The US lawmakers' proposal follows China's March decision to revoke the press credentials for US journalists from three major US newspapers - declaring five US media outlets to be foreign government proxies. In February, the Trump administration labeled five Chinese state media groups as "foreign missions" (via SCMP ).

    [May 23, 2020] Neoliberalism promised freedom instead it delivers stifling control by George Monbiot

    Highly recommended!
    From comments: " neoliberalism to be a techno-economic order of control, requiring a state apparatus to enforce wholly artificial directives. Also, the work of recent critics of data markets such as Shoshana Zuboff has shown capitalism to be evolving into a totalitarian system of control through cybernetic data aggregation."
    "... By rolling back the state, neoliberalism was supposed to have allowed autonomy and creativity to flourish. Instead, it has delivered a semi-privatised authoritarianism more oppressive than the system it replaced. ..."
    "... Workers find themselves enmeshed in a Kafkaesque bureaucracy , centrally controlled and micromanaged. Organisations that depend on a cooperative ethic – such as schools and hospitals – are stripped down, hectored and forced to conform to suffocating diktats. The introduction of private capital into public services – that would herald a glorious new age of choice and openness – is brutally enforced. The doctrine promises diversity and freedom but demands conformity and silence. ..."
    "... Their problem is that neoliberal theology, as well as seeking to roll back the state, insists that collective bargaining and other forms of worker power be eliminated (in the name of freedom, of course). So the marketisation and semi-privatisation of public services became not so much a means of pursuing efficiency as an instrument of control. ..."
    "... Public-service workers are now subjected to a panoptical regime of monitoring and assessment, using the benchmarks von Mises rightly warned were inapplicable and absurd. The bureaucratic quantification of public administration goes far beyond an attempt at discerning efficacy. It has become an end in itself. ..."
    Notable quotes:
    "... By rolling back the state, neoliberalism was supposed to have allowed autonomy and creativity to flourish. Instead, it has delivered a semi-privatised authoritarianism more oppressive than the system it replaced. ..."
    "... Workers find themselves enmeshed in a Kafkaesque bureaucracy , centrally controlled and micromanaged. Organisations that depend on a cooperative ethic – such as schools and hospitals – are stripped down, hectored and forced to conform to suffocating diktats. The introduction of private capital into public services – that would herald a glorious new age of choice and openness – is brutally enforced. The doctrine promises diversity and freedom but demands conformity and silence. ..."
    "... Their problem is that neoliberal theology, as well as seeking to roll back the state, insists that collective bargaining and other forms of worker power be eliminated (in the name of freedom, of course). So the marketisation and semi-privatisation of public services became not so much a means of pursuing efficiency as an instrument of control. ..."
    "... Public-service workers are now subjected to a panoptical regime of monitoring and assessment, using the benchmarks von Mises rightly warned were inapplicable and absurd. The bureaucratic quantification of public administration goes far beyond an attempt at discerning efficacy. It has become an end in itself. ..."
    "... The other point to be made is that the return of fundamentalist nationalism is arguably a radicalized form of neoliberalism. ..."
    "... Therefore, neoliberal hegemony can only be perpetuated with authoritarian, nationalist ideologies and an order of market feudalism. In other words, neoliberalism's authoritarian orientations, previously effaced beneath discourses of egalitarian free-enterprise, become overt. ..."
    "... The market is no longer an enabler of private enterprise, but something more like a medieval religion, conferring ultimate authority on a demagogue. Individual entrepreneurs collectivise into a 'people' serving a market which has become synonymous with nationhood. ..."
    Apr 10, 2019 | www.theguardian.com

    Thousands of people march through London to protest against underfunding and privatisation of the NHS. Photograph: Wiktor Szymanowicz/Barcroft Images M y life was saved last year by the Churchill Hospital in Oxford, through a skilful procedure to remove a cancer from my body . Now I will need another operation, to remove my jaw from the floor. I've just learned what was happening at the hospital while I was being treated. On the surface, it ran smoothly. Underneath, unknown to me, was fury and tumult. Many of the staff had objected to a decision by the National Health Service to privatise the hospital's cancer scanning . They complained that the scanners the private company was offering were less sensitive than the hospital's own machines. Privatisation, they said, would put patients at risk. In response, as the Guardian revealed last week , NHS England threatened to sue the hospital for libel if its staff continued to criticise the decision.

    The dominant system of political thought in this country, which produced both the creeping privatisation of public health services and this astonishing attempt to stifle free speech, promised to save us from dehumanising bureaucracy. By rolling back the state, neoliberalism was supposed to have allowed autonomy and creativity to flourish. Instead, it has delivered a semi-privatised authoritarianism more oppressive than the system it replaced.

    Workers find themselves enmeshed in a Kafkaesque bureaucracy , centrally controlled and micromanaged. Organisations that depend on a cooperative ethic – such as schools and hospitals – are stripped down, hectored and forced to conform to suffocating diktats. The introduction of private capital into public services – that would herald a glorious new age of choice and openness – is brutally enforced. The doctrine promises diversity and freedom but demands conformity and silence.

    Much of the theory behind these transformations arises from the work of Ludwig von Mises. In his book Bureaucracy , published in 1944, he argued that there could be no accommodation between capitalism and socialism. The creation of the National Health Service in the UK, the New Deal in the US and other experiments in social democracy would lead inexorably to the bureaucratic totalitarianism of the Soviet Union and Nazi Germany.

    He recognised that some state bureaucracy was inevitable; there were certain functions that could not be discharged without it. But unless the role of the state is minimised – confined to defence, security, taxation, customs and not much else – workers would be reduced to cogs "in a vast bureaucratic machine", deprived of initiative and free will.

    By contrast, those who labour within an "unhampered capitalist system" are "free men", whose liberty is guaranteed by "an economic democracy in which every penny gives a right to vote". He forgot to add that some people, in his capitalist utopia, have more votes than others. And those votes become a source of power.

    His ideas, alongside the writings of Friedrich Hayek , Milton Friedman and other neoliberal thinkers, have been applied in this country by Margaret Thatcher, David Cameron, Theresa May and, to an alarming extent, Tony Blair. All of those have attempted to privatise or marketise public services in the name of freedom and efficiency, but they keep hitting the same snag: democracy. People want essential services to remain public, and they are right to do so.

    If you hand public services to private companies, either you create a private monopoly, which can use its dominance to extract wealth and shape the system to serve its own needs – or you introduce competition, creating an incoherent, fragmented service characterised by the institutional failure you can see every day on our railways. We're not idiots, even if we are treated as such. We know what the profit motive does to public services.

    So successive governments decided that if they could not privatise our core services outright, they would subject them to "market discipline". Von Mises repeatedly warned against this approach. "No reform could transform a public office into a sort of private enterprise," he cautioned. The value of public administration "cannot be expressed in terms of money". "Government efficiency and industrial efficiency are entirely different things."

    "Intellectual work cannot be measured and valued by mechanical devices." "You cannot 'measure' a doctor according to the time he employs in examining one case." They ignored his warnings.

    Their problem is that neoliberal theology, as well as seeking to roll back the state, insists that collective bargaining and other forms of worker power be eliminated (in the name of freedom, of course). So the marketisation and semi-privatisation of public services became not so much a means of pursuing efficiency as an instrument of control.

    Public-service workers are now subjected to a panoptical regime of monitoring and assessment, using the benchmarks von Mises rightly warned were inapplicable and absurd. The bureaucratic quantification of public administration goes far beyond an attempt at discerning efficacy. It has become an end in itself.

    Its perversities afflict all public services. Schools teach to the test , depriving children of a rounded and useful education. Hospitals manipulate waiting times, shuffling patients from one list to another. Police forces ignore some crimes, reclassify others, and persuade suspects to admit to extra offences to improve their statistics . Universities urge their researchers to write quick and superficial papers , instead of deep monographs, to maximise their scores under the research excellence framework.

    As a result, public services become highly inefficient for an obvious reason: the destruction of staff morale. Skilled people, including surgeons whose training costs hundreds of thousands of pounds, resign or retire early because of the stress and misery the system causes. The leakage of talent is a far greater waste than any inefficiencies this quantomania claims to address.

    New extremes in the surveillance and control of workers are not, of course, confined to the public sector. Amazon has patented a wristband that can track workers' movements and detect the slightest deviation from protocol. Technologies are used to monitor peoples' keystrokes, language, moods and tone of voice. Some companies have begun to experiment with the micro-chipping of their staff . As the philosopher Byung-Chul Han points out , neoliberal work practices, epitomised by the gig economy, that reclassifies workers as independent contractors, internalise exploitation. "Everyone is a self-exploiting worker in their own enterprise."

    The freedom we were promised turns out to be freedom for capital , gained at the expense of human liberty. The system neoliberalism has created is a bureaucracy that tends towards absolutism, produced in the public services by managers mimicking corporate executives, imposing inappropriate and self-defeating efficiency measures, and in the private sector by subjection to faceless technologies that can brook no argument or complaint.

    Attempts to resist are met by ever more extreme methods, such as the threatened lawsuit at the Churchill Hospital. Such instruments of control crush autonomy and creativity. It is true that the Soviet bureaucracy von Mises rightly denounced reduced its workers to subjugated drones. But the system his disciples have created is heading the same way.

    George Monbiot is a Guardian columnist


    Pinkie123 , 12 Apr 2019 03:23

    The other point to be made is that the return of fundamentalist nationalism is arguably a radicalized form of neoliberalism. If 'free markets' of enterprising individuals have been tested to destruction, then capitalism is unable to articulate an ideology with which to legitimise itself.

    Therefore, neoliberal hegemony can only be perpetuated with authoritarian, nationalist ideologies and an order of market feudalism. In other words, neoliberalism's authoritarian orientations, previously effaced beneath discourses of egalitarian free-enterprise, become overt.

    The market is no longer an enabler of private enterprise, but something more like a medieval religion, conferring ultimate authority on a demagogue. Individual entrepreneurs collectivise into a 'people' serving a market which has become synonymous with nationhood.

    A corporate state emerges, free of the regulatory fetters of democracy. The final restriction on the market - democracy itself - is removed. There then is no separate market and state, just a totalitarian market state.

    glisson , 12 Apr 2019 00:10
    This is the best piece of writing on neoliberalism I have ever seen. Look, 'what is in general good and probably most importantly what is in the future good'. Why are we collectively not viewing everything that way? Surely those thoughts should drive us all?
    economicalternative -> Pinkie123 , 11 Apr 2019 21:33
    Pinkie123: So good to read your understandings of neoliberalism. The political project is the imposition of the all seeing all knowing 'market' on all aspects of human life. This version of the market is an 'information processor'. Speaking of the different idea of the laissez-faire version of market/non market areas and the function of the night watchman state are you aware there are different neoliberalisms? The EU for example runs on the version called 'ordoliberalism'. I understand that this still sees some areas of society as separate from 'the market'?
    economicalternative -> ADamnSmith2016 , 11 Apr 2019 21:01
    ADamnSmith: Philip Mirowski has discussed this 'under the radar' aspect of neoliberalism. How to impose 'the market' on human affairs - best not to be to explicit about what you are doing. Only recently has some knowledge about the actual neoliberal project been appearing. Most people think of neoliberalism as 'making the rich richer' - just a ramped up version of capitalism. That's how the left has thought of it and they have been ineffective in stopping its implementation.
    economicalternative , 11 Apr 2019 20:42
    Finally. A writer who can talk about neoliberalism as NOT being a retro version of classical laissez faire liberalism. It is about imposing "The Market" as the sole arbiter of Truth on us all.
    Only the 'Market' knows what is true in life - no need for 'democracy' or 'education'. Neoliberals believe - unlike classical liberals with their view of people as rational individuals acting in their own self-interest - people are inherently 'unreliable', stupid. Only entrepreneurs - those close to the market - can know 'the truth' about anything. To succeed we all need to take our cues in life from what the market tells us. Neoliberalism is not about a 'small state'. The state is repurposed to impose the 'all knowing' market on everyone and everything. That is neoliberalism's political project. It is ultimately not about 'economics'.
    Pinkie123 , 11 Apr 2019 13:27
    The left have been entirely wrong to believe that neoliberalism is a mobilisation of anarchic, 'free' markets. It never was so. Only a few more acute thinkers on the left (Jacques Ranciere, Foucault, Deleuze and, more recently, Mark Fisher, Wendy Brown, Will Davies and David Graeber) have understood neoliberalism to be a techno-economic order of control, requiring a state apparatus to enforce wholly artificial directives. Also, the work of recent critics of data markets such as Shoshana Zuboff has shown capitalism to be evolving into a totalitarian system of control through cybernetic data aggregation.


    Only in theory is neoliberalism a form of laissez-faire. Neoliberalism is not a case of the state saying, as it were: 'OK everyone, we'll impose some very broad legal parameters, so we'll make sure the police will turn up if someone breaks into your house; but otherwise we'll hang back and let you do what you want'. Hayek is perfectly clear that a strong state is required to force people to act according to market logic. If left to their own devices, they might collectivise, think up dangerous utopian ideologies, and the next thing you know there would be socialism. This the paradox of neoliberalism as an intellectual critique of government: a socialist state can only be prohibited with an equally strong state. That is, neoliberals are not opposed to a state as such, but to a specifically centrally-planned state based on principles of social justice - a state which, to Hayek's mind, could only end in t totalitarianism. Because concepts of social justice are expressed in language, neoliberals are suspicious of linguistic concepts, regarding them as politically dangerous. Their preference has always been for numbers. Hence, market bureaucracy aims for the quantification of all values - translating the entirety of social reality into metrics, data, objectively measurable price signals. Numbers are safe. The laws of numbers never change. Numbers do not lead to revolutions. Hence, all the audit, performance review and tick-boxing that has been enforced into public institutions serves to render them forever subservient to numerical (market) logic. However, because social institutions are not measurable, attempts to make them so become increasingly mystical and absurd. Administrators manage data that has no relation to reality. Quantitatively unmeasurable things - like happiness or success - are measured, with absurd results.

    It should be understood (and I speak above all as a critic of neoliberalism) that neoliberal ideology is not merely a system of class power, but an entire metaphysic, a way of understanding the world that has an emotional hold over people. For any ideology to universalize itself, it must be based on some very powerful ideas. Hayek and Von Mises were Jewish fugitives of Nazism, living through the worst horrors of twentieth-century totalitarianism. There are passages of Hayek's that describe a world operating according to the rules of a benign abstract system that make it sound rather lovely. To understand neoliberalism, we must see that it has an appeal.

    However, there is no perfect order of price signals. People do not simply act according to economic self-interest. Therefore, neoliberalism is a utopian political project like any other, requiring the brute power of the state to enforce ideological tenets. With tragic irony, the neoliberal order eventually becomes not dissimilar to the totalitarian regimes that Hayek railed against.

    manolito22 -> MrJoe , 11 Apr 2019 08:14
    Nationalised rail in the UK was under-funded and 'set up to fail' in its latter phase to make privatisation seem like an attractive prospect. I have travelled by train under both nationalisation and privatisation and the latter has been an unmitigated disaster in my experience. Under privatisation, public services are run for the benefit of shareholders and CEO's, rather than customers and citizens and under the opaque shroud of undemocratic 'commercial confidentiality'.
    Galluses , 11 Apr 2019 07:26
    What has been very noticeable about the development of bureaucracy in the public and private spheres over the last 40 years (since Thatcher govt of 79) has been the way systems are designed now to place responsibility and culpability on the workers delivering the services - Teachers, Nurses, social workers, etc. While those making the policies, passing the laws, overseeing the regulations- viz. the people 'at the top', now no longer take the rap when something goes wrong- they may be the Captain of their particular ship, but the responsibility now rests with the man sweeping the decks. Instead they are covered by tying up in knots those teachers etc. having to fill in endless check lists and reports, which have as much use as clicking 'yes' one has understood those long legal terms provided by software companies.... yet are legally binding. So how the hell do we get out of this mess? By us as individuals uniting through unions or whatever and saying NO. No to your dumb educational directives, No to your cruel welfare policies, No to your stupid NHS mismanagement.... there would be a lot of No's but eventually we could say collectively 'Yes I did the right thing'.
    fairshares -> rjb04tony , 11 Apr 2019 07:17
    'The left wing dialogue about neoliberalism used to be that it was the Wild West and that anything goes. Now apparently it's a machine of mass control.'

    It is the Wild West and anything goes for the corporate entities, and a machine of control of the masses. Hence the wish of neoliberals to remove legislation that protects workers and consumers.

    [May 16, 2020] Reopening Isn't only about Reopening -- It's also about forcefully removing people from unemployment insurance by Peter Dorman

    May 16, 2020 | www.nakedcapitalism.com

    By Peter Dorman, professor of economics at The Evergreen State College. Originally published at Econospeak

    Donald Trump, cheering on his "warriors" who demand that states lift their lockdown and distancing orders (where they have them), would have you believe this is about bringing the economy back to life so ordinary people can get their jobs and normal lives back. Elitist liberals who work from home and have country estates to retreat to don't care, but "real" people do.

    The reality is different. The shuttering of stores, restaurants, hotels and workplaces didn't begin with government orders and won't end with them. If the rate of new infection and death is too high, a lot of people won't go along. Not everyone, but enough to make a huge economic difference. Ask any small business owner what it would mean for demand to drop by 25-50%. Lifting government orders won't magically restore the economic conditions of mid-winter. So what's it about? Even as it makes a big PR show of supporting state by state "liberation" in America, the Trump administration is advising state governments on how to remove workers from unemployment insurance once orders are lifted. Without government directives, employers can demand workers show up, and if they refuse they no longer qualify. And why might workers refuse? Perhaps because their workplaces are still unsafe and they have vulnerable family members they want to keep from getting infected? Not good enough -- once the state has been "liberated".

    How should we respond to this travesty? First, of course, by telling the truth that an anti-worker, anti-human campaign is being conducted under the guise of defending workers. If the Democrats weren't themselves such a tool of business interests we might hear that narrative from them, but the rest of us are free to speak out and should start doing it, loudly, wherever we can.

    Second, one of the laws of the land is the Occupational Safety and Health Act of 1970, which gives workers the right to refuse imminently hazardous work. This hasn't been used very often, nor is there much case law around it, but the current pandemic is a good reason to pull it out of storage.

    If there are public interest law firms looking for something useful to do during distancing, they could advertise their willingness to defend workers who need to stay home until work is safe -- while still getting their paycheck. If employers thought the choice was between public support for workers sitting out the pandemic or their support for them we might hear less about "liberation".


    none , May 14, 2020 at 10:30 am

    They want to throw people off of unemployment while using the virus threat to stop any serious protests against that. It is literally biological warfare against working people. Same class war as before, but now with CBW.

    Rod , May 14, 2020 at 10:47 am

    Taught it for years. This is the biggest net and is the # 1 Cited Violation for 1910/1926 and MSHA–ever.

    OSHA 654 5(a)1 The General Duty Clause.

    OSHA Laws & Regulations OSH Act of 1970
    OSH Act of 1970
    Table of Contents
    General Duty Clause
    Complete OSH Act Version ("All-in-One")
    SEC.
    5.
    Duties
    (a)
    Each employer --
    (1)
    29 USC 654
    shall furnish to each of his employees employment and a place of employment which are free from recognized hazards that are causing or are likely to cause death or serious physical harm to his employees;
    (2)
    shall comply with occupational safety and health standards promulgated under this Act.
    (b)
    Each employee shall comply with occupational safety and health standards and all rules, regulations, and orders issued pursuant to this Act which are applicable to his own actions and conduct.

    And 'Recognized' totes a lot of water.

    Rod , May 14, 2020 at 10:53 am

    Quick Take –Two way street.
    Employers mus t mitigate hazards. Employees must comply with mitigation.
    No Employer Mitigation=Breaking the Law=No Employee requirement to work in Unsafe Conditions.

    L , May 14, 2020 at 11:16 am

    "Lifting all boats" was always a lie. It was simply a way to sell trickle down by claiming that the objectively observable inequality it produced would somehow help everyone, eventually, sort of. There was not and has never been a plan by the Conservative Movement to lift all boats. Only a plan to feign interest in doing so.

    Librarian Guy , May 15, 2020 at 12:02 pm

    I agree with most of your comment except the "smarter" part.

    They don't seem smart to me, they openly plunder and loot and spit in the populace's faces. They don't even pretend to believe in or work for a "common good" anymore, really. That is the story of the 21st Century in the US, starting with Baby Bush II. (Okay, I get that the Obama crew seemed "smart" or sophisticated to the PMC and comfortable liberals, but how smart were they if they led to the open Kleptocratic Disruption of Trumpism and the God Emperor?)

    What the Elites have that the proles don't is in-group solidarity. (And a captured Media establishment.) They protect their own, while the hoi polloi fight one another for scraps.

    Hoppy , May 14, 2020 at 12:54 pm

    What is the death rate among the working age population?

    Seem like a tough hill to die on given the curve has flattened, hospitals are not overflowing, and the economy is teetering on the edge of depression.

    No one has a vaccine, this isn't going away any time soon. It's time to focus on protecting the most vulnerable instead of pretending this effects everyone equally.

    Allow states to cut benefits? Come on, UI benefits are taxed for pete's sake. 'Available to work' basically means you have start at 8am the next day which is doesn't align with any reality of hiring except in low end service sector jobs.

    campbeln , May 14, 2020 at 3:25 pm

    > and the economy is teetering on the edge of depression

    This was baked in the cake already, COVID was simply the spark that ignited all that dead wood on the forest floor.

    cripes , May 15, 2020 at 12:16 am

    campbeln:

    Yes.

    I thought the quiet transfer of trillions in helicopter money to the banksters in the last half of 2019, way before the covid craze was telling.

    How convenient.

    Wally , May 14, 2020 at 1:49 pm

    The other really significant thing is that 're-opening' doesn't necessarily mean returning to business. For example, Musk insists on re-opening Tesla the assumption being that sales are there to be had if they re-open. But if not no sales, no need for employees back down the drain we go.
    Same for restaurants. retail, hotels, transit and white collar jobs – attorneys, architects, CPAs

    DHG , May 14, 2020 at 5:48 pm

    Yup, the smart and shrewd will conceal themselves as much as possible and live, the stupid will rush out and most likely die.

    JBird4049 , May 15, 2020 at 1:20 am

    The poorest and the most desperate actually. Some people still have not received any money from the state or federal governments. The quarantine started about two months ago. So no job, no income, no money, and no joke. No matter how shrewd or smart you are sometimes you are not making the decisions. Reality makes them for you.

    KFritz , May 14, 2020 at 3:24 pm

    There's another possible reason to reopen. If the country officially reopens, there's no need for any more federal stimulus!

    campbeln , May 14, 2020 at 3:26 pm

    Bankers got their TRILLIONS?

    Pack it up, boys! We're done here.

    J.k , May 14, 2020 at 5:06 pm

    Well till the markets crashes again and they need to save the assets of the wealthiest.

    I just got a text from a buddy who is an electrician. His company just told him they are not expecting to take any major work till second quarter of next year. They will only be taking emergency calls. This is in Chicago.

    LawnDart , May 14, 2020 at 6:28 pm

    Your buddy might be able to use this link:

    https://wepoweramerica.org/hotjobs.cgi

    Granted, it's a union site, but one point that they make is how union saturation raises the wages for all workers within a given region.

    In Appalachia, I was offered $15hr. to work as an electrician. In Chicagoland, starting wages were close to or more than double that. Guess where I went in order to establish a salary history? And no, the cost of living is really not too different between those two places, but opportunities sure were.

    (moderators: in response to an "Eat the Rich!" comment, I posted a link with recipes: I apologize for this. Admittedly, it was in poor taste.)

    [May 15, 2020] US Unemployment Update

    Notable quotes:
    "... @apenultimate ..."
    May 15, 2020 | caucus99percent.com

    apenultimate on Thu, 05/14/2020 - 9:50am The past week's unemployment claims came out today, and add another 2.98 million to the pile. This brings total unemployment claims for the past 8 weeks (two months or so) to 36.5 million.

    Determining unemployment percentages depends on what data you use. The Bureau of Labor Statistics (BLS) shows the employment numbers for the United States in August 2019 as ~157 million ( https://www.bls.gov/cps/cpsaat08.htm ). Admittedly, that's not March 2020 statistics, but employment numbers would not change all that much in half of a year.

    The St. Louis Federal Reserve has a different set of statistics that show 205.5 million Americans employed in March 2020 ( https://fred.stlouisfed.org/series/LFWA64TTUSM647S ). (They show the August 2019 period with employment at 206 million.)

    Why the huge difference? I have no idea. But going forward, I'll use both to determine unemployment numbers. Remember that in early March 2020, unemployment was already around 3%.

    Using the BLS statistics, we get an unemployment rate of 23.16% for the past 8 weeks. Add on the previous 3% of people unemployed, and you reach 26.16% unemployment.

    Using the St. Louis Fed statistics, we get an unemployment rate of 17.76% for the past 8 weeks. Add on the previous 3% of people unemployed, and you reach 20.76% unemployment.

    The peak rate of unemployment during The Great Depression was 24.9%. The peak rate of unemployment during the the Great Recession in 2008 was 10%.

    According to BLS statistics, we are already greater than Great Depression unemployment numbers.

    According to the St. Louis Fed, we are already more than double Great Recession numbers and only about 4 percentage points away from Great Depression peaks.

    The Labor Department last week reported April unemployment for the United states at 14.7%, but this according to their own admission was undercounting the real rates. Be careful of any numbers coming out of the mainstream media or government sources.

    https://www.sfchronicle.com/business/article/Coronavirus-job-loss-Weekly...

    Some jobs will definitely come back, but many will not. For example, JC Penny's reported that they are permanently closing 200 of their 850 nationwide stores. Those jobs will not be coming back. There are weekly reports of many cafes, restaurants, and small businesses shuttering their doors for good. Those jobs will not be coming back.

    Even for the companies that do not shut down, it may be a long haul before economic activity has picked up enough to bring workers back. In most cases, it will not be a quick recovery.

    Hang on for a very rough ride. 2 users have voted.

    ggersh on Thu, 05/14/2020 - 10:52am
    This is the place to go for stats

    @apenultimate and like everything else our govt does, the unemployment number is just pure BS

    http://www.shadowstats.com/article/csfu1435

    • Headline April 2020 Unemployment Really Was Around 20%, Not 15%
    • Bureau of Labor Statistics Disclosed Erroneous Unemployment Surveying for a Second Month
    • About 7.5 Million People in the April Household Survey Were Misclassified as Employed Instead of Unemployed, per the BLS
    • Headline April U.3 Unemployment at 14.7%, Should Have Been 19.5%
    • The BLS Had Disclosed the Same Surveying Error Last Month; Where Headline March 2020 U.3 Was 4.4%, It Should Have Been 5.3%
    • Per the BLS, Headline Data Will Not Be Corrected: "To maintain data integrity, no ad hoc actions are taken to reclassify survey responses."
    • Nonetheless, Headline April Unemployment Soared to Historic Highs from March: U.3 from 4.4% to 14.7%, U.6 from 8.7% to 22.8% and ShadowStats from 22.9% to 35.4%
    • More Realistic, Those Same Unemployment Numbers, Corrected: U.3 from 5.3 % to 19.5%, U.6 from 9.6% to 27.7% and ShadowStats from 23.7% to 39.6%
    • April 2020 Payrolls Collapsed by an Unprecedented 20.5 Million Jobs
    • Annual Growth in April 2020 Money Supply Measures Soared to Historic Highs
    • U.S. Economic Activity Has Collapsed to Great Depression Levels, with the Federal Reserve Creating Unlimited Money

    apenultimate on Thu, 05/14/2020 - 10:58am
    Nice

    @ggersh

    Thanks for that. Seems like a large percentage of the difference is that BLS says 7.5 million were mis-classified as employed.

    At the very least, it seems the BLS does a bit of correcting, whereas the Fed does not.

    gulfgal98 on Thu, 05/14/2020 - 1:13pm
    Federal Reserve Chair Jerome Powell

    stated in the very beginning of this video, that of people who were employed in February of this year, nearly 40% of those earning $40,000 or less have become unemployed. This is an unprecedented human tragedy that Congress in all their bailouts now totalling about $8 Trillion have seen fit to throw a one time pittance of $1,200. With mountains of cash going to corporations and lobbyists, Congress insultingly gave real suffering Americans a few pennies and in effect told them that their lives do not matter to Washington DC.

    //www.youtube.com/embed/AROXMTDOkjw?modestbranding=0&html5=1&rel=0&autoplay=0&wmode=opaque&loop=0&controls=1&autohide=0&showinfo=0&theme=dark&color=red&enablejsapi=0

    [May 12, 2020] 'Immediate danger' Half of world's workforce could lose livelihood due to Covid-19, UN agency warns

    www.defenddemocracy.press
    The International Labour Organization (ILO) has warned that around half of the world's workforce, or 1.6 billion workers, are at imminent risk of losing their livelihood because of the economic impact of the coronavirus pandemic. In its latest report, the UN agency stated that those hardest hit by the financial effects of the Covid-19 outbreak have been 'informal economy' workers, including the self-employed and those on a short-term contract.

    "The first month of the crisis is estimated to have resulted in a drop of 60 percent in the income of informal workers globally," the ILO said of the economic damage already caused by the pandemic.

    The deepening crisis in many parts of the world has left more than 436 million businesses facing financial hardship and possible closure, the ILO stated, which will inevitably hurt workers. The report listed the worst-hit sectors as manufacturing, accommodation and food services, wholesale and retail trade, and real estate.

    "For millions of workers, no income means no food, no security and no future," ILO Director-General Guy Ryder said of the stark impact of an economic dip.

    He added that, according to ILO data, there is expected to be a "massive" rise in poverty levels worldwide, unless governments recognize the need to reconstruct their economies around better working practices and "not a return to the pre-pandemic world of precarious work for the majority."

    Since the novel coronavirus emerged in China late last year, over 3.1 million cases have been confirmed around the world, and more than 216,000 people have died. Drastic lockdowns to limit its spread have taken a dire toll on the global economy, prompting market turmoil and numerous projections of the heavy recession to strike this year.

    [May 10, 2020] Lockdowns May Aggravate America's Next Health Crisis An Explosion Of Deaths Of Despair, Study Finds

    Notable quotes:
    "... Polls of life satisfaction taken since the outbreak began have reflected a rapid erosion as 33 million Americans have joined the unemployment rolls over the last months. NY Gov Andrew Cuomo said during a recent daily briefing that NY is seeing a spike in drug and alcohol abuse as people sit around all day with nothing to do and nowhere to go. ..."
    "... But of course the tremendous levels of financial uncertainty coupled with the unique characteristics of this crisis make it pretty much impossible to model - any research is really an educated guess, at best. ..."
    "... "Unemployment is going to have a very important impact on deaths of despair." ..."
    "... His proposed strategies including investing more resources in helping unemployed people find meaningful work, and/or training the armies of contact tracers that de Blasio has now promised to hire to spot people at risk of self-harm. ..."
    May 10, 2020 | www.zerohedge.com

    Doctors , scientists policymakers and even 'non-experts' posting on social media have argued that shuttering the health-care system to all non-emergency care risks sparking other public health crises from a spike in heart attacks and advanced cancer diagnoses, to so-called "deaths of despair."

    In some areas, a spike in suicides has already been recorded since the start of the outbreak. And now, a newly published paper released Friday has attempted to quantify deaths that might occur because of the mental-health ramifications of widespread economic chaos caused by the crisis. The research - which hasn't yet been peer-reviewed - found the isolation, grief and economic hardship related to COVID-19 are conspiring to supercharge America's already-burgeoning mental-health crisis, likely setting the stage for tens of thousands of suicides down the line.

    Specifically, the researchers tabulated that as many as 75k additional "deaths of despair" could be caused by the outbreak and the economy-crushing measures implemented to stop the spreads. "Deaths of despair" typically refer to suicides and substance-abuse-related deaths, according to Bloomberg .

    The research was carried out by the Well Being Trust and researchers affiliated with the American Academy of Family Physicians. One of the report's authors said he hopes the research is eventually proven to be incorrect.

    "I hope in 10 years people look back and say, 'Wow, they way overestimated it,'" said John Westfall, director of the Robert Graham Center for Policy Studies in Family Medicine and Primary Care, who co-wrote the report.

    But the sizable spike in suicides, overdoses etc since the last major crisis (the financial crisis) is reason to be concerned.

    Even as the American economy rebounded after the last recession, suicides and overdoses cut into Americans' life expectancy. Mental health experts worry that the economic uncertainty and social isolation of the pandemic will make things worse at a time when the health care system is already overwhelmed. The suicide rate in the US has already been rising for two decades, and in 2018 hit its highest level since 1941, Bloomberg reported, citing a piece published by JAMA Psychiatry (a prestigious medical journal) back in April.

    "There's a paradox," said Jeffrey Reynolds, president of a Long Island-based nonprofit social services agency, the Family and Children's Association. " Social isolation protects us from a contagious, life-threatening virus, but at the same time it puts people at risk for things that are the biggest killers in the United States: suicide, overdose and diseases related to alcohol abuse."

    Polls of life satisfaction taken since the outbreak began have reflected a rapid erosion as 33 million Americans have joined the unemployment rolls over the last months. NY Gov Andrew Cuomo said during a recent daily briefing that NY is seeing a spike in drug and alcohol abuse as people sit around all day with nothing to do and nowhere to go.

    "One of the main things people should take away from this paper is that employment matters," said Benjamin Miller, chief strategy officer at the Well Being Trust and a clinical psychologist who worked on the paper. "It matters for our economic livelihood, and for our mental and emotional health."

    But of course the tremendous levels of financial uncertainty coupled with the unique characteristics of this crisis make it pretty much impossible to model - any research is really an educated guess, at best.

    Still, the researchers believe it's a useful warning, and something important for policy makers to keep in mind.

    "It's useful to have a wake-up call," said Ken Duckworth, chief medical officer at the National Alliance on Mental Illness. "Unemployment is going to have a very important impact on deaths of despair."

    Benjamin Miller, chief strategy officer at the Well Being Trust and a clinical psychologist who worked on the paper, proposed several solutions that could be enacted to, uh, depress the number of suicides.

    His proposed strategies including investing more resources in helping unemployed people find meaningful work, and/or training the armies of contact tracers that de Blasio has now promised to hire to spot people at risk of self-harm.

    [May 06, 2020] Deaths of Despair

    May 06, 2020 | www.moonofalabama.org

    c1ue , May 6 2020 15:54 utc | 86

    I'm sure this has been mentioned, but Angus Deaton talking about his "Deaths of Despair" work Boston review article

    JC: In the book you focus on these deaths of despair: 158,000 in 2018, about 100,000 of which are above and beyond what we would normally expect, an excess that is almost entirely among white non-Hispanic men and women without a college degree. The category covers three different causes of death: alcohol, opioids, and suicide. Could you talk about why you group them together?

    AD: Initially, "deaths of despair" was a label of convenience. It helped express the sense that these deaths were sort of caused by your own hand -- unlike COVID-19, say.

    ...

    these previous drug epidemics -- in the United States after the Civil War, or in China when the empire was disintegrating -- tended to arise during periods of social disintegration. The simplified story is that some bad Big Pharma manufacturers started pushing opioids on all of us. But in reality, Purdue Pharmaceuticals and other companies went to places where there was already lots of despair. They were looking for despair. They were looking for regions where you could harass doctors into prescribing these drugs.

    Our claim in the book is that without this underlying despair -- pain, morbidity, people not going to church, people's lives coming apart -- there wouldn't have been this open field for opioids. On the other hand, if the FDA had not been so much in the hands of the industry, and if we were not operating a rent-seeking, capitalistic health care system, then we wouldn't have got those efforts to capitalize on the despair. Other countries didn't get them to anything like the same extent.

    ...

    JC: One of the issues that you emphasize in the book is the generational aspect of deaths of despair: how it keeps getting worse for younger generations. The idea that this is a process that is worsening over time resonates strongly with Raj Chetty's account of the fading American dream. I am thinking of the study by Chetty and colleagues about absolute mobility, guided by the question: Are you going to do better than your parents? When I was born in 1951, there was a 90 percent chance of doing better than your parents. If you were born in 1980, chances had fallen to 50 percent.

    ...

    The Democrats largely decided to abandon the working class and build a coalition of educated elites and minorities (including working-class minorities), and the Republicans basically followed business and religious organizations.

    And the health care crises make things worse. Health care costs were 5 percent of GDP back in 1970, and now they're 18 percent of GDP. Everything is heaping up on these people.

    ...

    The pillars that structured working-class life seem to have gone, or at least been eroded. And we see the fundamental force of that in the labor market. Decent wages and jobs help to bring respectability and meaning into life. We're not against some of the explanations that focus more on social norms. I think the birth control pill was very important, changing the norms about when and whether you could have children, whether you'd live together without being married. We write about how the pill was very socially divisive. For women who could get educated, it enormously enhanced opportunities to have relationship fulfilment and children as well as really good jobs. But for many working-class women for whom college was not an option, it did the opposite.

    But declining wages were an incredibly important part of the loss.

    ...

    But there's a much more negative scenario, too, which economic historian Robert Allen writes about. In the early nineteenth century in Britain, real wages stagnated for fifty years. Handloom weavers were being replaced by machines in factories in the Industrial Revolution, and wages could only rise when they were all gone, and the way of life and around handloom weaving had been destroyed.

    [c1ue note: the putting out system was a major cause of the above]

    ...

    A lot of evidence suggests that in recessions, mortality rates typically go down. The Great Depression was a very good time for life expectancy. But suicides do go up. It's not a simple story. They say in New York that what would normally be filling hospital beds would normally be filling with traffic and construction accidents, and there aren't any.

    [May 06, 2020] Richard Wolff US jobless totals are about to get WORSE than during the Great Depression. It's time for a RADICAL new approach

    May 06, 2020 | www.rt.com

    By Richard D. Wolff, Professor of Economics Emeritus, University of Massachusetts, Amherst, and Visiting Professor in the Graduate Program in International Affairs of the New School University, NYC. Wolff's weekly show, Economic Update, is syndicated on over 100 radio stations and goes to 55 million TV receivers via Free Speech TV and his two recent books with Democracy at Work are Understanding Marxism and Understanding Socialism both available at democracyatwork.info . We are entering an even Greater Depression than the 1930s, with hundreds of millions thrown out of work across the world. Capitalism is a broken, unstable system that is beyond repair – but there are alternatives. Ninety-one years after the start of the Great Depression (capitalism's worst downturn until now), we are entering an even Greater Depression. The 1930s were so awful that leaders of capitalist economies ever since have said they had learned how to avoid any future depressions. All promised to take the steps needed to avoid them. Those promises have all been broken. Capitalism remains intrinsically unstable. Read more Richard D. Wolff: Viruses like Covid-19 are a part of nature we must accept. But Capitalism-2020 must be destroyed Richard D. Wolff: Viruses like Covid-19 are a part of nature we must accept. But Capitalism-2020 must be destroyed

    That instability is revealed in its recurring cycles, recessions, downturns, depressions, crashes, etc. They have plagued capitalism wherever it has settled in as the prevailing economic system. Now that the whole world's prevailing economic system is capitalism, we suffer global instability. To date, capitalist instability has resisted every effort (monetary and fiscal policies, Keynesian economics, privatization, deregulation, etc.) to overcome or stop it. And now it is here yet again.

    Across the world, hundreds of millions of workers are unemployed. The tools, equipment, and raw materials in their factories, offices and stores sit idle, gathering dust and rust. The goods and services they might have produced do not now emerge to help us through these awful times. Perishable plants and animals that cannot now be processed are destroyed even as scarcities multiply.

    Workers lose their jobs if and when employers – mostly private capitalists – fire them. Employers hire workers when workers add more value to what the employer sells than the value of those workers' wages. Hiring then adds to profits. Employers fire workers when they add less than the value of the wages paid to them. Firing then reduces losses. Employers protect and reproduce their enterprises by maximizing profits and minimizing losses.

    Profit, not the full employment of workers nor of means of production, is "the bottom line" of capitalists, and thus of capitalism. That is how the system works. Capitalists are rewarded when their profits are high and punished when they are not.

    No-one wants unemployment. Workers want their jobs back; employers want the workers back producing profitable output; governments want the tax revenues that depend on workers and capitalist employers actively collaborating to produce.

    Yet the capitalist system has regularly produced economic downturns everywhere for three centuries – on average, every four to seven years. We have had three crashes so far this century: 'dot.com' in 2000, 'sub-prime mortgage' in 2008, and now 'corona' in 2020. That averages out at one crash just under every seven years – capitalism's 'norm'. Capitalists do not want unemployment, but they regularly generate it. It is a basic contradiction of their system.

    Read more ONE IN SEVEN Americans would avoid Covid-19 treatment for fear of cost, even as pricey new pill shows promise against virus ONE IN SEVEN Americans would avoid Covid-19 treatment for fear of cost, even as pricey new pill shows promise against virus

    Today's massive US capitalist crisis – over 30 million unemployed and counting, a quarter of the workforce – shows dramatically that maximizing profit is not maximizing society's well-being. First and foremost, consider that the unemployed millions continue much of their consumption while ceasing much of their production. A portion of the wealth produced by those still employed must be redistributed to sustain the unemployed. Society thus suffers the usually intense struggles over the shares of profits versus wages that will be redistributed to the unemployed. These struggles, both public – over tax structures, for example – and private – for instance, over household budgets – can be profoundly destabilizing for societies.

    Redistribution struggles could be alleviated if, for example, public employment replaced private unemployment. If the state became the employer of last resort, those fired by private employers could immediately be rehired by the state to do useful social work.

    Then any government paying unemployment benefits would instead pay wages, obtain in return real goods and services, and distribute them to the public. The 1930s New Deal did exactly that for millions fired by private employers in the US. A similar alternative (not part of the New Deal) would be to organize the unemployed into worker co-ops performing socially useful work under contract with the government.

    This last alternative is the best, because it would develop a new worker co-op sector of the US economy. That would provide the US public with direct experience in comparing the capitalist with the worker co-op sector in terms of working conditions, product quality and price, civic responsibility, etc.

    On that concrete, empirical basis, societies could offer people a real, democratic choice as to what mix of capitalist and worker co-op sectors of the economy they prefer.

    The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of RT.

    [Apr 28, 2020] The Meditations, by a Roman emperor who died in a plague named after him, has much to say about how to face fear, pain, anxiety and loss by Donald Robertson

    Notable quotes:
    "... First of all, because Stoics believe that our true good resides in our own character and actions, they would frequently remind themselves to distinguish between what's "up to us" and what isn't. Modern Stoics tend to call this "the dichotomy of control" and many people find this distinction alone helpful in alleviating stress. What happens to me is never directly under my control, never completely ..."
    "... Marcus likes to ask himself, "What virtue has nature given me to deal with this situation?" That naturally leads to the question: "How do other people cope with similar challenges?" Stoics reflect on character strengths such as wisdom, patience and self-discipline, which potentially make them more resilient in the face of adversity. They try to exemplify these virtues and bring them to bear on the challenges they face in daily life, during a crisis like the pandemic. They learn from how other people cope. Even historical figures or fictional characters can serve as role models. ..."
    "... fear does us more harm than the things of which we're afraid. ..."
    "... Finally, during a pandemic, you may have to confront the risk, the possibility, of your own death. Since the day you were born, that's always been on the cards. Most of us find it easier to bury our heads in the sand. Avoidance is the No1 most popular coping strategy in the world. We live in denial of the self-evident fact that we all die eventually. ..."
    "... "All that comes to pass", he tells himself, even illness and death, should be as "familiar as the rose in spring and the fruit in autumn". Marcus Aurelius, through decades of training in Stoicism, in other words, had taught himself to face death with the steady calm of someone who has done so countless times already in the past. ..."
    Apr 25, 2020 | www.theguardian.com
    T he Roman emperor Marcus Aurelius Antoninus was the last famous Stoic philosopher of antiquity. During the last 14 years of his life he faced one of the worst plagues in European history. The Antonine Plague, named after him, was probably caused by a strain of the smallpox virus. It's estimated to have killed up to 5 million people, possibly including Marcus himself.

    ss="rich-link tone-feature--item rich-link--pillar-arts">

    ="rich-link__link u-faux-block-link__overlay" aria-label="'What it means to be an American': Abraham Lincoln and a nation divided" href="https://www.theguardian.com/books/2020/apr/11/abraham-lincoln-verge-book-ted-widmer-interview">

    From AD166 to around AD180, repeated outbreaks occurred throughout the known world. Roman historians describe the legions being devastated, and entire towns and villages being depopulated and going to ruin. Rome itself was particularly badly affected, carts leaving the city each day piled high with dead bodies.

    In the middle of this plague, Marcus wrote a book, known as The Meditations, which records the moral and psychological advice he gave himself at this time. He frequently applies Stoic philosophy to the challenges of coping with pain, illness, anxiety and loss. It's no stretch of the imagination to view The Meditations as a manual for developing precisely the mental resilience skills required to cope with a pandemic.

    First of all, because Stoics believe that our true good resides in our own character and actions, they would frequently remind themselves to distinguish between what's "up to us" and what isn't. Modern Stoics tend to call this "the dichotomy of control" and many people find this distinction alone helpful in alleviating stress. What happens to me is never directly under my control, never completely up to me, but my own thoughts and actions are – at least the voluntary ones. The pandemic isn't really under my control but the way I behave in response to it is.

    Much, if not all, of our thinking is also up to us. Hence, "It's not events that upset us but rather our opinions about them." More specifically, our judgment that something is really bad, awful or even catastrophic, causes our distress.

    This is one of the basic psychological principles of Stoicism. It's also the basic premise of modern cognitive behavioral therapy (CBT), the leading evidence-based form of psychotherapy. The pioneers of CBT, Albert Ellis and Aaron T Beck, both describe Stoicism as the philosophical inspiration for their approach. It's not the virus that makes us afraid but rather our opinions about it. Nor is it the inconsiderate actions of others, those ignoring social distancing recommendations, that make us angry so much as our opinions about them.

    Many people are struck, on reading The Meditations, by the fact that it opens with a chapter in which Marcus lists the qualities he most admires in other individuals, about 17 friends, members of his family and teachers. This is an extended example of one of the central practices of Stoicism.

    Marcus likes to ask himself, "What virtue has nature given me to deal with this situation?" That naturally leads to the question: "How do other people cope with similar challenges?" Stoics reflect on character strengths such as wisdom, patience and self-discipline, which potentially make them more resilient in the face of adversity. They try to exemplify these virtues and bring them to bear on the challenges they face in daily life, during a crisis like the pandemic. They learn from how other people cope. Even historical figures or fictional characters can serve as role models.

    With all of this in mind, it's easier to understand another common slogan of Stoicism: fear does us more harm than the things of which we're afraid. This applies to unhealthy emotions in general, which the Stoics term "passions" – from pathos , the source of our word "pathological". It's true, first of all, in a superficial sense. Even if you have a 99% chance, or more, of surviving the pandemic, worry and anxiety may be ruining your life and driving you crazy. In extreme cases some people may even take their own lives.

    In that respect, it's easy to see how fear can do us more harm than the things of which we're afraid because it can impinge on our physical health and quality of life. However, this saying also has a deeper meaning for Stoics. The virus can only harm your body – the worst it can do is kill you. However, fear penetrates into the moral core of our being. It can destroy your humanity if you let it. For the Stoics that's a fate worse than death.

    Finally, during a pandemic, you may have to confront the risk, the possibility, of your own death. Since the day you were born, that's always been on the cards. Most of us find it easier to bury our heads in the sand. Avoidance is the No1 most popular coping strategy in the world. We live in denial of the self-evident fact that we all die eventually. The Stoics believed that when we're confronted with our own mortality, and grasp its implications, that can change our perspective on life quite dramatically. Any one of us could die at any moment. Life doesn't go on forever.

    We're told this was what Marcus was thinking about on his deathbed. According to one historian, his circle of friends were distraught. Marcus calmly asked why they were weeping for him when, in fact, they should accept both sickness and death as inevitable, part of nature and the common lot of mankind. He returns to this theme many times throughout The Meditations.

    "All that comes to pass", he tells himself, even illness and death, should be as "familiar as the rose in spring and the fruit in autumn". Marcus Aurelius, through decades of training in Stoicism, in other words, had taught himself to face death with the steady calm of someone who has done so countless times already in the past.

    Donald Robertson is cognitive behavioural therapist and the author of several books on philosophy and psychotherapy, including Stoicism and the Art of Happiness and How to Think Like a Roman Emperor: The Stoic Philosophy of Marcus Aurelius

    [Apr 22, 2020] Replacing Workers Has Many Costs by Cheryl Carleton

    Apr 22, 2020 | www.nakedcapitalism.com

    It goes without saying that the consequences to workers are damaging to catastrophic. Normally, being unemployed for more than six months is a near-insurmountable barrier to getting hired again. Perhaps coronavirus will create a better new normal on this front, of companies taking a more understanding view of crisis-induced resume gaps.

    By Cheryl Carleton, Assistant Professor of Economics, Villanova University. Originally published at The Conversation

    The labor market is changing rapidly with the onset of the coronavirus pandemic.

    Many organizations are laying off almost all of their workers , while others are considering which workers to lay off, which to furlough and which to keep. Alternatively, some are expanding their labor forces .

    When the economy starts to open up again, employers will need to consider rehiring or replacing workers, or hiring workers with a different mix of skills. The cost of replacing an employee is high for employers, and being out of work is harmful for workers, who may be replaced with artificial intelligence or contractors and risk losing their skills.

    I'm an expert in labor economics , and my work with a colleague investigates the increase in people engaging in alternative work arrangements such as contract or gig work, along with the implications such jobs have for all workers' well-being .

    There is no denying that the U.S. was experiencing a tight labor market and a low rate of unemployment before the coronavirus pandemic took hold. For some fields, particularly health care and services deemed essential by local governments, the labor market continues to be tight.

    A sudden massive loss of demand for their goods and services is forcing companies to make quick decisions, and some employers may underestimate the cost to replace good employees. Knowing these costs may encourage them to keep more of their workers on the payroll.

    Where Are the Costs?

    There are costs involved in losing a worker and replacing them, such as completing paperwork when they leave, advertising the open position, reviewing resumes, interviewing candidates and training the new worker.

    Once a new worker is hired, others must also spend time training them, and it will take some time for the new worker to achieve the same level of productivity as the worker who left.

    Another cost is the loss in social capital . Social capital is the relationships between individuals at work that take time to build and add to the productivity of the firm.

    The Society for Human Resource Management found that departures cost about one-third of a worker's annual earnings .

    The Center for American Progress drilled in deeper. They found the costs of replacing workers who earn less than US$30,000 per year to be 16% of annual salary, or $3,200 for an individual earning $20,000 per year.

    For those earning $30,000 to $50,000 per year, it is estimated to cost about 20% of annual salary, or $8,000 for an individual earning $40,000. For highly educated executive positions, replacement costs are estimated to be 213% of annual salary – $213,000 for a CEO earning $100,000 per year.

    The much higher cost for replacing CEOs is partly due to the fact that they require higher levels of education, greater training, and firms may lose clients and institutional knowledge with such turnovers.

    Employee Alternatives

    This high cost of losing and replacing workers has important implications for organizations, consumers and workers, especially now with an estimated 15 million unemployed .

    For those workers where the costs to replace them are high, firms will try to accommodate them. Strategies may include maintaining pay, increasing benefits and retraining. These actions are also costly, so firms will weigh them against the cost of simply hiring new workers .

    This means businesses face high costs to replace workers in the future, and high costs to retain current workers, leading to higher costs for consumers who buy the firms' goods and services.

    While the above consequences might sound great for workers that organizations choose to keep, these are not the only ways in which firms can respond.

    The high cost of replacing workers, along with the increased uncertainty about the economy may cause businesses to use more automation and robots . Though such switches may entail a significant upfront cost, once they are made the firms then have more control over their production processes.

    Another alternative for firms is to hire fewer permanent employees and turn instead to contract workers . With contract workers, employers are not responsible for benefits, and they can more simply increase or decrease the number of workers as needed.

    While this may increase employment for some workers, it will decrease it for others and it has serious implications for the availability of health and pension benefits as well as unemployment benefits, as the current crisis has revealed.

    Businesses might also consider limiting the scope of what some workers do to limit the cost of replacing them. If the scope of a worker's job is limited, then fewer areas will be impacted by the individual leaving, and the costs to train a replacement will be lower. For workers, however, it means fewer opportunities to gain experience.

    For example, instead of training workers on several or all parts of the production process, the business may limit them to one specific aspect. It will then be less costly for the firm to replace them and the worker will have less experience to add to their resume. This also means less bargaining power for employees.

    Some Win, But Others Lose

    The high cost of losing and then hiring new workers along with increased restrictions on hiring nonresidents might mean higher wages and increased benefits for some workers.

    However, the high degree of uncertainty in the current labor market, along with the potential increase in contract workers and automation means that some workers will not realize these potential gains, and all of us as consumers will most likely end up paying higher prices for the goods and services we buy.

    [Apr 01, 2020] Could the Covid19 Response be More Deadly than the Virus OffGuardian

    Apr 01, 2020 | off-guardian.org

    Suicides and Drug Abuse

    According to the National Center for Health Statistics, over 48,000 suicides occurred in the US in 2018. This equates to an annual rate of about 14 suicides per 100,000 people. As expected, suicides increase substantially during times of economic depression. For example, as a result of the 2008 recession there was an approximate 25% increase. Similarly, during a peak year of the Great Depression, in 1932, the rate rose to 17 suicides per 100,000 people.

    Recent research ties high suicide rates "to the unraveling of the social fabric" that happens when societal breakdowns occur. People become despondent over economic hardship, the loss of social structures, loneliness, and related factors.

    There is probably no greater example of these kinds of losses than what we are experiencing today with the extreme response to COVID-19 and the effects will be felt for many years. The social structures might return in a few months but the economy will not.

    Some think that the economy will recover in three years and others think it will never recover in terms of impact to low-income households, as was the case for the 2008 recession. However, if we estimate a full recovery in six years, the effects will contribute around 3 suicides per 100,000 people every year during that time for a total of over 59,000 deaths in the United States.

    Related to suicides are drug abuse deaths. According to the National Institute on Drug Abuse, over 67,000 deaths from overdose of illicit or prescription drugs occurred in 2018. This does not include alcohol abuse. Only 7% were suicides and 87% were known to be unintentional deaths largely due to drug abuse caused by depression or other mental conditions. Such conditions can be expected to rise during times of economic collapse and if we estimate the impact due to COVID-19 over six years as being a 25% increase (as with suicides) that projects about 87,000 additional deaths due to drug abuse.

    Lack of Medical Coverage or Treatment

    Unemployment is expected to rise dramatically as a result of the COVID-19 response and the effect is already being seen in jobless claims. One of the major impacts of unemployment, apart from depression and poverty, is a lack of medical coverage.

    A Harvard study found nearly 45,000 excess deaths annually linked to lack of health coverage. That was at the pre-COVID-19 unemployment rate of 4%.

    As reported recently, millions of Americans are losing their jobs in the COVID-19 recession/depression. For every 2% increase in unemployment, there are about 3.5 million lost jobs.

    The US Secretary of Treasury has predicted a 20% unemployment level, which translates to 12 million lost jobs. If the 45,000 excess deaths due to lack of medical coverage increases uniformly by unemployment rate, we can expect about 225,000 deaths annually due to lack of medical coverage in the US at 20% unemployment. Extrapolating this over a 6-year period would mean 1.35 million deaths .

    This assumes that funding for important health-related programs are not further cut or ignored, a bad assumption that means the estimate is probably low.

    Beyond lack of coverage, medical services are being reprioritized to respond preferentially to COVID-19, causing less resources to be available for treatment of other medical conditions. The capacity of medical service providers has already been significantly impacted by the COVID-19 response in some areas.

    Additionally, clinical trials and drug development are expected to be severely impacted. This means that important new medicines will not reach the market and people will die who otherwise would have lived. There is not yet enough information on the overall impact to medical service provision therefore we will not include an estimate.

    Poverty and Food Access

    The Columbia University School of Public Health studied the effects of poverty on death rates. The investigators found that 4.5% of US deaths were attributable to poverty. That's about 130,000 deaths annually.

    How will this be affected by COVID-19? One way to begin estimating is to consider how the number of people living in poverty will increase.

    Before the COVID-19 response, approximately 12% of Americans lived below the officially defined poverty line. That percentage will undoubtedly rise significantly due to the expected increase in unemployment. If unemployment rises to 20% (from 4%) as predicted, the number of people living in poverty could easily double. If that is the extent of the effect, we will see another 130,000 deaths per year from general poverty.

    Although deaths due to poverty are not entirely about food access, it is a significant factor in that category. In times of economic hardship many people can't afford good food, causing malnutrition and, in some cases, starvation. People also can't access food causing the same outcomes. Limited access to nutritious food is a root cause of diet-related diseases, including diabetes, cardiovascular disease, and infant mortality issues. A recent estimate suggests 20% of all deaths worldwide are linked to poor diets.

    Food access issues will be further exacerbated with the COVID-19 problem due to the anticipated issues with food production and prices. If the COVID-19 response lasts for years as expected, our estimate will need to be a multiple of the 130,000 annual figure. Using the 6-year estimate, we get 780,000 deaths.

    Conclusion

    The total deaths attributable to the COVID-19 response, from just this limited examination, are estimated to be:

    Suicides 59,000 Drug abuse 87,000 Lack of medical coverage or treatment 1,350,000 Poverty and food access 780,000

    These estimates, totaling more than two million deaths above the estimated 150,000 expected from the virus itself, do not include other predictable issues with the COVID-19 response. An example is the lack of medical services as stated above. Other examples include the EPA's suspension of environmental regulations. It has been estimated that the EPA's Clean Air Act alone has saved 230,000 lives each year.

    Moreover, the anticipated failure of the US Postal Service (USPS) will lead to more illness and death. The USPS "delivers about 1 million lifesaving medications each year and serves as the only delivery link to Americans living in rural areas."

    Even using these low estimates, however, we can see that the response will be much worse than the virus. The social devastation and economic scarring could last more than six years, with one expert predicting that it will be "long-lasting and calamitous."

    That expert has noted that he is not overly concerned with the virus itself because "as much as 99 percent of active cases [of COVID-19] in the general population are 'mild' and do not require specific medical treatment."

    Yet he is deeply concerned about the "the social, economic and public health consequences of this near total meltdown of normal life." He suggests a better alternative is to focus only on those most susceptible to the virus. Others have reasonably suggested that only those who are known to be infected should self-quarantine.

    Some public health professionals have been pleading with authorities to consider the implications of the unreasonable response. Many experts have spoken out publicly, criticizing the overreaction to COVID-19. A professor of medical microbiology, for example, has written an open letter to German Chancellor Merkel in an attempt to draw attention to the concerns.

    The real problem we face today is not a virus. The greater problem is that people have failed to engage in critical thinking due to the fear promoted by some media and government officials. Fear is the mind killer, as author Frank Herbert once wrote. Ultimately, the fear of COVID-19 and the lack of critical thinking that has arisen from it are likely to cause far more deaths than the virus itself.


    George Mc ,

    List of the effects of this virus (not exhaustive):

    • Total shut down on all other news items.
    • The speeding up of an economic meltdown which was going to happen anyway but which now can be attributed to the virus alone.
    • The speeding up of the inevitable confrontation between the overlords and the masses on conditions favourable to the former.
    • The reduction of the public to a condition in which most welcome draconian restrictions
    • The harsh and vitriolic gap between those who are urging on the restrictions and those who are suspicious i.e. a divide and rule matter which threatens to become physically violent.
    • The curtailing and indeed destruction of the rights and protections for the general population that have been hard won over the last century.
    • The reduction of social life to a social media matrix. (And yes I'm using the word "matrix" in a knowing way.)
    • The seemingly legitimate emergence of a police state
    • The wrecking of the public sector. Of course this also means the wrecking of the private sector but that will happen in a bottom up way i.e. smaller businesses tanking, then slightly larger, then larger still. But by the time it affects the giants, the game can be called off since the public sector will be gone.

    Joerg ,

    Some weeks ago on youtube there was a video with an interview with a German virologist Dr. Köhnlein. Youtube removed this video – but now it is back on youtube again (only in German): "CORONA – Alles nur Panik (Dr. Köhnlein)" – https://www.youtube.com/watch?v=TVHZ1bLceRw&feature=youtu.be

    Toby Russell ,

    I've been trying to get a grip on the extent to which the PCR test is used to establish who has been infected with this alleged virus. Part of my research led me to this very recent presentation on YouTube by a well credentialed doctor called Andrew Kaufman. In it, he sets out how inaccurate the test is, that there isn't even a gold standard against which to assess its accuracy, but the one attempt to do so he could find arrived at an 80% false-positive rate. I heard from a doctor friend that its inventor, Kary Mullis, insisted it should never be used for diagnosis. My understanding is that it is being used everywhere but China, where a new test is being developed. If this is true, the figures we are being bombarded with are not remotely trustable.

    But the main thrust of the presentation by Dr Kaufman is the identity between exosomes and covid-19. Exosomes are natural cellular defense mechanisms recently becoming known amongst molecular biologists. They are largely unknown by doctors and nurses. Kaufman's assertion is that covid-19 is in fact an exosome. He quotes James Hildreth, M.D., President and Chief Executive Officer at Meharry Medical College and a former professor at John Hopkins: " the virus is fully an exosome in every sense of the word."

    The presentation is about 40 minutes long and followed by a fairly lengthy question and answer session. Because falsifiable, and because it explains all the oddities of this case, I feel his theory deserves widespread attention.

    In other news I had time today to translate:

    The New England Journal of Medicine is the world's leading medical journal. In its 26 March 2020 edition, we find: "[ ] This suggests that the overall clinical consequences of COVID-19 may ultimately be more akin to a severe seasonal influenza (which has a case fatality rate of approximately 0.1%) or a pandemic influenza (similar to those in 1957 and 1968) rather than a disease similar to SARS or MERS [ ]"

    This article was penned by a few authors, one of whom was none other than Anthony S Fauci. Yes, THE Anthony S Fauci. Note the case fatality rate. If anyone is interested in a full translation, please let me know

    Cassandra2 ,

    The human race is being 'played' and the majority have been conditioned to accept it.

    The really SCARY aspect of all this is that even if 97% of the global population were given a complete insight into what was actually going on and who was (and has been for a considerable time) manipulating events – what could they do about it?

    Answer 'NOTHING'

    The people are atomised, disconnected and totally powerless as they have no control over MASS MEDIA COMMUNICATION . . . . . they do (RE: BBC).

    A catalyst is required to unite the human race to establish an effective Counter-Offensive capable of cleaning the earth of the dark forces currently in play.

    [Mar 10, 2020] Neoliberalism has brought out the worst in us by Paul Verhaeghe

    Highly recommended!
    Neoliberalism destroys solidarity; as the result it destroys both the society and individuals
    Notable quotes:
    "... Thirty years of neoliberalism, free-market forces and privatisation have taken their toll, as relentless pressure to achieve has become normative. If you're reading this sceptically, I put this simple statement to you: meritocratic neoliberalism favours certain personality traits and penalises others. ..."
    "... On top of all this, you are flexible and impulsive, always on the lookout for new stimuli and challenges. In practice, this leads to risky behaviour, but never mind, it won't be you who has to pick up the pieces. The source of inspiration for this list? The psychopathy checklist by Robert Hare , the best-known specialist on psychopathy today. ..."
    "... the financial crisis illustrated at a macro-social level (for example, in the conflicts between eurozone countries) what a neoliberal meritocracy does to people. Solidarity becomes an expensive luxury and makes way for temporary alliances, the main preoccupation always being to extract more profit from the situation than your competition. Social ties with colleagues weaken, as does emotional commitment to the enterprise or organisation. ..."
    "... Bullying used to be confined to schools; now it is a common feature of the workplace. This is a typical symptom of the impotent venting their frustration on the weak – in psychology it's known as displaced aggression. There is a buried sense of fear, ranging from performance anxiety to a broader social fear of the threatening other. ..."
    "... Constant evaluations at work cause a decline in autonomy and a growing dependence on external, often shifting, norms ..."
    "... More important, though, is the serious damage to people's self-respect. Self-respect largely depends on the recognition that we receive from the other, as thinkers from Hegel to Lacan have shown. Sennett comes to a similar conclusion when he sees the main question for employees these days as being "Who needs me?" For a growing group of people, the answer is: no one. ..."
    "... A neoliberal meritocracy would have us believe that success depends on individual effort and talents, meaning responsibility lies entirely with the individual and authorities should give people as much freedom as possible to achieve this goal. ..."
    "... the paradox of our era as: "Never have we been so free. Never have we felt so powerless." ..."
    Sep 29, 2014 | www.theguardian.com

    An economic system that rewards psychopathic personality traits has changed our ethics and our personalities

    'We are forever told that we are freer to choose the course of our lives than ever before, but the freedom to choose outside the success narrative is limited.'

    We tend to perceive our identities as stable and largely separate from outside forces. But over decades of research and therapeutic practice, I have become convinced that economic change is having a profound effect not only on our values but also on our personalities. Thirty years of neoliberalism, free-market forces and privatisation have taken their toll, as relentless pressure to achieve has become normative. If you're reading this sceptically, I put this simple statement to you: meritocratic neoliberalism favours certain personality traits and penalises others.

    There are certain ideal characteristics needed to make a career today. The first is articulateness, the aim being to win over as many people as possible. Contact can be superficial, but since this applies to most human interaction nowadays, this won't really be noticed.

    It's important to be able to talk up your own capacities as much as you can – you know a lot of people, you've got plenty of experience under your belt and you recently completed a major project. Later, people will find out that this was mostly hot air, but the fact that they were initially fooled is down to another personality trait: you can lie convincingly and feel little guilt. That's why you never take responsibility for your own behaviour.

    On top of all this, you are flexible and impulsive, always on the lookout for new stimuli and challenges. In practice, this leads to risky behaviour, but never mind, it won't be you who has to pick up the pieces. The source of inspiration for this list? The psychopathy checklist by Robert Hare , the best-known specialist on psychopathy today.

    This description is, of course, a caricature taken to extremes. Nevertheless, the financial crisis illustrated at a macro-social level (for example, in the conflicts between eurozone countries) what a neoliberal meritocracy does to people. Solidarity becomes an expensive luxury and makes way for temporary alliances, the main preoccupation always being to extract more profit from the situation than your competition. Social ties with colleagues weaken, as does emotional commitment to the enterprise or organisation.

    Bullying used to be confined to schools; now it is a common feature of the workplace. This is a typical symptom of the impotent venting their frustration on the weak – in psychology it's known as displaced aggression. There is a buried sense of fear, ranging from performance anxiety to a broader social fear of the threatening other.

    Constant evaluations at work cause a decline in autonomy and a growing dependence on external, often shifting, norms. This results in what the sociologist Richard Sennett has aptly described as the "infantilisation of the workers". Adults display childish outbursts of temper and are jealous about trivialities ("She got a new office chair and I didn't"), tell white lies, resort to deceit, delight in the downfall of others and cherish petty feelings of revenge. This is the consequence of a system that prevents people from thinking independently and that fails to treat employees as adults.

    More important, though, is the serious damage to people's self-respect. Self-respect largely depends on the recognition that we receive from the other, as thinkers from Hegel to Lacan have shown. Sennett comes to a similar conclusion when he sees the main question for employees these days as being "Who needs me?" For a growing group of people, the answer is: no one.

    Our society constantly proclaims that anyone can make it if they just try hard enough, all the while reinforcing privilege and putting increasing pressure on its overstretched and exhausted citizens. An increasing number of people fail, feeling humiliated, guilty and ashamed. We are forever told that we are freer to choose the course of our lives than ever before, but the freedom to choose outside the success narrative is limited. Furthermore, those who fail are deemed to be losers or scroungers, taking advantage of our social security system.

    A neoliberal meritocracy would have us believe that success depends on individual effort and talents, meaning responsibility lies entirely with the individual and authorities should give people as much freedom as possible to achieve this goal. For those who believe in the fairytale of unrestricted choice, self-government and self-management are the pre-eminent political messages, especially if they appear to promise freedom. Along with the idea of the perfectible individual, the freedom we perceive ourselves as having in the west is the greatest untruth of this day and age.

    The sociologist Zygmunt Bauman neatly summarised the paradox of our era as: "Never have we been so free. Never have we felt so powerless." We are indeed freer than before, in the sense that we can criticise religion, take advantage of the new laissez-faire attitude to sex and support any political movement we like. We can do all these things because they no longer have any significance – freedom of this kind is prompted by indifference. Yet, on the other hand, our daily lives have become a constant battle against a bureaucracy that would make Kafka weak at the knees. There are regulations about everything, from the salt content of bread to urban poultry-keeping.

    Our presumed freedom is tied to one central condition: we must be successful – that is, "make" something of ourselves. You don't need to look far for examples. A highly skilled individual who puts parenting before their career comes in for criticism. A person with a good job who turns down a promotion to invest more time in other things is seen as crazy – unless those other things ensure success. A young woman who wants to become a primary school teacher is told by her parents that she should start off by getting a master's degree in economics – a primary school teacher, whatever can she be thinking of?

    There are constant laments about the so-called loss of norms and values in our culture. Yet our norms and values make up an integral and essential part of our identity. So they cannot be lost, only changed. And that is precisely what has happened: a changed economy reflects changed ethics and brings about changed identity. The current economic system is bringing out the worst in us.

    Psychology Work & careers Economics Economic policy

    See also

    [Jan 27, 2020] Warren as an extremely weak, incoherent politician: one example if her approach to student debt problem

    There is a huge difference between extremely bright students and medicate ones. Bright students are the future of the society and need to be nurtures and helped in any way possible for the range of specialties that are important (STEM is one example)
    There is difference between the degree in computer science and the degree in some obscure nationality studies (let's say Eastern European studies; few people that are needed can be paid by intelligence agencies ;-) Obscure areas should be generally available only to well to do students, who can pay for their education.
    Like is the case with alcoholism, some student debt is the result of bad personal choices.
    Notable quotes:
    "... Authored by Zachary Stieber via The Epoch Times, ..."
    "... "My daughter's getting out of school, I saved all my money, so she doesn't have any student debt. Am I going to get my money back?" ..."
    "... So, we end up paying for people who didn't save any money, then those who did the right thing get screwed, ..."
    "... "We did the right thing and we get screwed," ..."
    "... "Look, we build a future going forward by making it better. By that same logic what would we have done? Not started Social Security because we didn't start it last week for you or last month for you," ..."
    "... "We don't build an America by saddling our kids with debt. We build an America by saying we're going to open up those opportunities for kids to be able to get an education without getting crushed by student loan debt." ..."
    "... Sen. Elizabeth Warren (D-Mass.) campaigns in Des Moines, Iowa on Jan. 19, 2020. (Spencer Platt/Getty Images) ..."
    "... "I'll direct the Secretary of Education to use their authority to begin to compromise and modify federal student loans consistent with my plan to cancel up to $50,000 in debt for 95% of student loan borrowers (about 42 million people)," ..."
    "... A scholarship system awarding free tuition to the top 5% of college applicants (NOT biased by race, gender, etc) who apply to the U.S.'s best STEM programs, hell yes! Free tuition for future Democrat voters, f^%k that! ..."
    Jan 27, 2020 | www.zerohedge.com

    Authored by Zachary Stieber via The Epoch Times,

    Sen. Elizabeth Warren (D-Mass.) defended her plan to pay off college loans after being confronted by a father in Iowa in an exchange that went viral.

    Senator Elizabeth Warren is confronted by a father who worked double shifts to pay for his daughters education and wants to know if he will get his money back. pic.twitter.com/t2GGbAnG08

    -- Eddie Donovan (@EddieDonovan) January 21, 2020

    The father approached Warren, a leading Democratic presidential contender, after a campaign event in Grimes.

    "My daughter's getting out of school, I saved all my money, so she doesn't have any student debt. Am I going to get my money back?" the man asked Warren.

    "Of course not," Warren replied.

    " So, we end up paying for people who didn't save any money, then those who did the right thing get screwed, " the father told her.

    He then described a friend who makes more money but didn't save up while he worked double shifts to save up to pay for his daughter's college.

    The father became upset, accusing Warren of laughing.

    "We did the right thing and we get screwed," he added before walking off.

    In an appearance on "CBS This Morning" on Friday, Warren was asked about the exchange.

    Last night, a father who saved for his daughter's college education approached @SenWarren and challenged her proposed student loan forgiveness plan. @TonyDokoupil asks the senator for her response: pic.twitter.com/jLUXPqChC6

    -- CBS This Morning (@CBSThisMorning) January 24, 2020

    "Look, we build a future going forward by making it better. By that same logic what would we have done? Not started Social Security because we didn't start it last week for you or last month for you," Warren said.

    Pressed on whether she was saying "tough luck" to people like the father, she said "No." She then recounted how she got to go to college despite coming from a poor family.

    "There was a $50 a semester option for me. I was able to go to college and become a public school teacher because America had invested in a $50 a semester option for me. Today that's not available," she said.

    "We don't build an America by saddling our kids with debt. We build an America by saying we're going to open up those opportunities for kids to be able to get an education without getting crushed by student loan debt."

    Sen. Elizabeth Warren (D-Mass.) campaigns in Des Moines, Iowa on Jan. 19, 2020. (Spencer Platt/Getty Images)

    One of Warren's plans is to cancel student loans. According to her website , on her first day as president she would cancel student loan debt as well as give free tuition to public colleges and technical schools and ban for-profit colleges from getting aid from the federal government.

    "I'll direct the Secretary of Education to use their authority to begin to compromise and modify federal student loans consistent with my plan to cancel up to $50,000 in debt for 95% of student loan borrowers (about 42 million people)," Warren wrote.

    "I'll also direct the Secretary of Education to use every existing authority available to rein in the for-profit college industry, crack down on predatory student lending, and combat the racial disparities in our higher education system."

    Sounds an awful lot like the dad above is right those that did the "right thing" are gonna get "screwed."


    csmith , 1 minute ago link

    Warren's debt forgiveness plan will turbo-boost the increases in college costs. It is the EXACTLY backwards remedy for out-of-control college costs.

    mtndds , 2 minutes ago link

    Warren you bitch, I paid back my student loans responsibly by working my *** off (140k) and now you want to give others a free ride? I sure hope that I get a refund for all that money I paid back.

    moron counter , 7 minutes ago link

    Obama did this kinds thing with housing. I got outbid by 100k on a house. The other bidder who got it didn't make his house payments so Obama restructured his loan knocking off 100k from his loan and giving him a 1% interest rate on it. He again didn't make his payments and got it restructured again but I didn't hear the terms of that one.

    chelydra , 12 minutes ago link

    If student loan debt is such a crisis, force every university to use their precious endowment funds to underwrite those loans AND let those loans get discharged in bankruptcy. Maybe then those schools would start to question whether having a dozen "Diversity Deans" each being paid $100k+ salaries is really worth the expense (among other things).

    Imagine That , 12 minutes ago link

    A scholarship system awarding free tuition to the top 5% of college applicants (NOT biased by race, gender, etc) who apply to the U.S.'s best STEM programs, hell yes! Free tuition for future Democrat voters, f^%k that!

    FightingDinosaur , 15 minutes ago link

    The pissed off dad in this story has only one person to be pissed off at: himself, for being stupid. Understand something about college degrees: 90% of them, including majors like accounting, are not worth the paper they are printed on. Anyone who works double shifts to pay for anyone's college degree, even their own, is stupid. Look at why college costs so much: go to any state, and you'll see that 70% or more of the highest paid state employees are employed by public colleges and universities. You need to play these sons of bitches at their game, use their funny money to pay for the degree, and walk away. If you play the way these sons of bitches tell you to play, you get what you deserve.

    I used their funny money to get a degree that wasn't worth the paper it was printed on and walked away. I don't give a **** if the sons of bitches grab my tax refund. Why? Because I have my withholdings set up so they get next to nothing in April. It costs the sons of bitches more to print up the garnishment letter and send it to me than what they're stealing from me. Guess what I use for an address? P.O. Box (can't serve a summons to a ghost).

    If you're going to do what stupid, pissed off dad did, and work double shifts, you need to be trading out of all that funny money you're being paid for those double shifts, and trading into personal economic leverage (gold first, then silver). Instead of having bedrock to build multi-generational wealth, he has a daughter with a degree in pouring coffee, and nothing else to show for it. He only has himself to blame for drinking the Kool Aid. I can grab overtime every Saturday at my job if I want it, and every last penny of that OT is traded out of funny money and into gold ASAP.

    Understand the US real estate market: the only reason it did not die five years ago was because we welcomed rich foreigners to come in and buy real estate to protect their wealth. We've stopped doing that, we have an over-abundance of domestic sellers and a severe shortage of domestic buyers. It's also where history says you need to be if you want to build multi-generational wealth. Warren actually needs to go further than what she's proposing. Not only does she need to discharge 100% of those balances by EO, she also needs to refund all those tax refunds stolen under false pretenses. Anything less, and we are guaranteed, for the next 40 years, to have a real estate market and economy which resembles Japan since 1989.

    Why do I buy gold? So I can play people like Warren at their game. I'll take whatever loan discharge she gives me, and have lots of leverage in reserve to take advantage of what will be a once in a lifetime real estate fire sale.

    Centurion9.41 , 13 minutes ago link

    Here's an idea...

    Make those who want to be bailed out have to pay the bailout back by working every non-holiday Saturday (at the minimum wage rate) for the government and citizens (e.g who need work done around the house, take care of the elderly - in the bathroom) until the debt is paid back. AND let those who have not taken the debt relief supervise them - getting paid by the government at the same rate, minimum wage. 🦞🦞🦞🦞🦞

    gatorengineer , 13 minutes ago link

    For a decent college it's between 35-70k a year.... Why? 300k a year library professors, if it weren't for tenure the problem would largely he self correcting as rntrillments drop...

    southpaw47 , 18 minutes ago link

    My how times have changed. My son was a college grad circa 1996. He did the JUCO thing for 1 1/2 years , worked a part time job for the duration, and picked up an A S while making the President's list. I aid, out of pocket all educational expenses while he lived at home and provided for a nice lifestyle while he was in school. As promised, he finished his education, out of state, which I paid for all along the way. 2 more years, he graduated, on the Pres list, and picked up his B S. No student debt, in his words, was one of the the greatest gifts. Today he is debt free, (so am I ), and he is a very happy , financially secure ( until the world goes upside down) mature adult. Hey Lizzie, send me a check.

    Snaffew , 27 minutes ago link

    They are all ignoring the real problem...the Federal mandated system of the guaranteed student loan program. Anyone with a pulse can get a guaranteed student loan, thus creating a massive rise in college admissions. The colleges are guaranteed the money for these loans, while the lender (the US gov't) is not guaranteed to be paid back by the students receiving these loans,. this created a fool proof, risk free ability for colleges and universities across the country to jack up their tuition costs at over a 5:1 ratio of income growth over the last 25 years. The problem is the program itself, students need to earn their ability to enroll in college through hard work and good grades. Currently, any moron with a high school diploma can go to college on a guaranteed student loan program and the colleges are more than willing to take on any idiot that wants to go to school despite their aspirations, work ethics, intelligence, achievements, etc. The universities have been given a blank check to expand their campuses, drastically inflate the salaries and pensions of professors and administrators of these schools all at the expense of this guaranteed "free" money from the government that only achieved an immense amount of the population going to overpriced schools in order to get a diploma in useless pursuits like african american studies, philosophy, creative writing, music, criminal justice, arts, basket weaving, etc.. The skyrocketing costs of colleges and student debt is the direct result of this miserably failed system of the guaranteed student loan. The majority of which have no business going to higher education because they don't have the aptitude, work ethic and intelligence necessary to actually receive a degree in anything that benefits the economy and themselves going forward. 30 years ago the average state college admission was roughly $4k a year for a good state school, today it is roughly $20k or far more. Meanwhile, the average income has gone up a meaningless amount. Get rid of the guaranteed student loan program and make the colleges responsible for accepting the responsibility of the loans for their students. I guarantee enrollment will decrease and costs will decline making it much more affordable for the truly responsible and aspiring student to achieve their dreams of a degree without a $250k loan needed for completion nor the lifelong strain of debt on their future incomes. The colleges are raping the system the same as all these shoestring companies take advantage of the medicaid system and give hovarounds and walking canes, and hearing aids for free because the gov't reimburses them at wildly inflated prices under some federally passed mandate. The system is the problem, eliminating the debt will only exacerbate it and cost taxpayers trillions more each and every year as "free" college will now entice every moron with a heartbeat the ability to go to outrageously priced schools with no skin in the game on the taxpayer's dime. Elizabeth Warren is an idiot....someone needs to have a sit down with her and discuss this rationale in her luxurious, state of the art TeePee.

    Balance-Sheet , 11 minutes ago link

    While you are correct corrupting academics with huge payoffs is how you secure their votes and the votes of most of the 'students' for decades to come.

    Any group or industry can be paid off and you might think of the system as a set of interlocking payoffs until you get out to the margins and the fringes where the cash and benefits are a lot thinner.

    bkwaz4 , 25 minutes ago link

    Everyone who continues to pay taxes to these neo-Bolsheviks is going to get screwed. The only alternative is to stop funding these criminals completely.

    johnduncan78 , 25 minutes ago link

    What a sorry presidential canditate! She flat out LIED about being native american to get FREE college. And now this. Where has America gone????????? Socialism sems to be what most want nowadays. It has NEVER EVER worked anywhere in the world at any time! If yoou think therwise, just name ONE countryn it has worked in ! What a lying bunch the democrats are..........................

    Lie_Detector , 27 minutes ago link

    Warren Defends Plan To Cancel Student Debt

    So all if us have to pay for it. Why did I have to pay for University and College in the 1970's if I wanted to further my education and now that I am older I have to foot the bill for the young people of today? Pay DOUBLE? (just to buy votes for traitors?)

    I think NOT! Take your theft from the people, to buy votes of everyone from young people to illegal criminals to outright criminals in prison to dead people and resign before we decide to arrest you.

    Democrats, HANG IT UP! We are NOT paying for YOUR illegitimate votes.

    Resist-Socialist-Dem-Lies , 24 minutes ago link

    Notice too how all their "we're going to wipe out your debt!" promises never seem to include the big "endowments" of these fascist colleges that jacked up tuition 1000% over what it used to cost.

    No, those creepy commie profs and their freaky administrators get to keep their big TAX FREE endowments AND their big salaries.

    Big Gov by Sanders/Warren don't seem to think that's obscene.

    Lie_Detector , 22 minutes ago link

    You are absolutely correct. 45 years ago you could almost work part time and actually PAY your way through college. Today you almost need a physicians salary to pay for these OVERPRICED sewers filled with leftist propaganda.

    moron counter , 27 minutes ago link

    It's obvious that Warren doesn't teach economics or even math. They weren't smart enough when they took out the loans and they are not good with paying their bills so move the goal posts to bail them out. Has anyone given the thought that maybe they shouldn't have gone to college at all. Sounds like they will all work for the government anyways.

    [Jan 24, 2020] Bloomberg's Plan for Addressing Economic Inequality: not a wealth tax by Linda Beale

    Jan 23, 2020 | angrybearblog.com
    A bit ago (Jan 8, 2020), the New York Times described Michael Bloomberg's plan 1 for addressing the income and wealth inequality in the United States that has been a constant topic of discussion by Democratic candidates. Briefly, as with the robber barons of Teddy Roosevelt's age, the wealth of the global commerce titans and particularly the private equity fund buyers and sellers of companies (and layers off of employees) has exploded over the last four decades in the US, beginning in earnest with Ronald Reagan's presidency. Most of the benefits of productivity gains have gone to a very few people at the top, and the bottom 50% of the wealth distribution actually owns a smaller share of the nation's wealth than 40 years ago. The top 1% have gained enormously, and the top 0.5% have been even more enriched. We have ultra multibillionaires like Jeff Bezos who can pay $9 billion to his wife in a divorce settlement and still be the wealthiest man in the world with more than $130 billion in net worth. He earns about $78.5 billion a year (counting value of his Amazon shares) or more than $6.5 billion a month 2 and thus exemplifies this new "gilded age" of ultrawealthy tycoons. This exists at the same time that the Trump administration proposes work requirements that will eliminate food stamp aid for 700,000 of hungry Americans and, with other initiatives, will take food stamps from 3.7 million beneficiaries who simply cannot get work that pays well enough to fund a sustainable lifestyle for themselves and their families. 3 This will "save" the U.S. about $5.5 billion over five years–less than Bezos 'earns' in a month. This disparity–$5.5 billion to feed 3.5 million hungry Americans versus provide a month's additional wealth for a person already wallowing in wealth like Jeff Bezos–is why it is clear that the US needs to figure out how to respond to the inequality crisis in order to protect American democracy and ensure Americans have a decent standard of living.

    Bloomberg's plan seems to be a moderate stance like Obama and Biden that attempts to focus on factors other than the wealth gap and the accompanying power gap that wealth provides. As the NY Times reports, he "frames the economic divide primarily in regional terms–and not along rich-versus-everyone-else class lines." 1 The Times article notes that his plan is not unlike the charge Obama gave to Joe Biden for the Middle Class Task Force. 1\

    Bloomberg's proposals for addressing the problem are similarly centered on things long discussed and tried that are difficult to do at a large enough scale to make any inroads into the inequality problem or the power gap problem. He is most definitely not proposing a wealth tax. His proposals include a focus on education and skills training, infrastructure projects, and entrepreneurial training centers. Although the GI Bill was a significant part of the post-WWII economic boom because it allowed vast numbers of returning veterans to get a college education, Bloomberg seems to be thinking more of apprenticeships and community colleges (training for a job) rather than university (training for a career and an approach to learning throughout life). The Times notes his interest in raising the minimum wage to $15 an hour, expanding the Earned Income Tax Credit, and encouraging unions while disallowing noncompetes for low- and middle-income jobs.

    All those are minimal steps that any progressive candidate should take, but while they may have marginal impact on middle class mobility, they will not do much at all to ease the income and wealth gap that has been caused by technology, globalization, and financialization of the economy together that has measured success almost solely from stock market numbers and thus allowed corporate and private equity tycoons to garner the major gains in productivity over decades while paying their workers too little (or moving offshore to pay even less), combined with a tax system that privileges wealth, including, among a host of others, extremely favorable corporate tax provisions after the 2017 tax legislation, ridiculously low maximum rates on ordinary income, carried interest provision, section 1031 exchanges, section 1202 exclusion for gains on original issue small business stock, capital gains preference, and an absurdly low flat estate tax above a too-high exemption amount with a step-up in basis for heirs.

    Bloomberg is a billionaire who is at least aware that the inequality in this country is problematic and needs to be addressed. But like most of the "have-so-much" class, he shows little interest in what is truly required–a shift in the direction of redistribution to balance the distorted seesaw of billionaires getting all the height and the rest sitting at the bottom. FDR's New Deal is said to have worked because the robber barons were scared that the proletariat would rise up in support of communism–the so-called 'red scare' behind the success of social security enactment. There may not be a red scare now (though the Trump campaigners try to paint democratic socialist programs as communism), but there is a real likelihood that the contrast–and possibly real class warfare– between the squalor and despair of poor families who work hard but cannot fend for themselves and rich kids with silver spoons that only grow bigger and bigger may eventually threaten the global nation of the plutocrats. 4

    1 Jim Tankersley, Michael Bloomberg's Jobs Plan is Focused on Place over Class , New York Times (Jan 8, 2020).

    2 Hillary Hoffower, We did the math to calculate how much money Jeff Bezos makes in a year, month, week, day, hour, minute, and second , BusinessInsider.com (Jan 9, 2020).

    3 Phil McCausland, T rump administration proposals could cause millions to lose food stamps , NBC News (Nov. 30, 2019) (discussing proposed changes to SNAP program that would impose stricter work requirements, cap deductions for utility allowances and 'reform' the way states automatically enroll families when they receive other aid). See also

    4. See, e.g., Chrystia Freeland, Plutocrats: The Rise of the New Global Super-Rich (2012) (described in The Guardian book review as "a necessary and at times depressing book about the staggeringly wealthy"). Freeland is neither Marxist nor socialist, and as I am reading the book, not evenappropriately skeptical of the amount of merit behind the plutocrats' self-claimed meritocracy.

    1. pgl , January 23, 2020 7:40 am

      Bloomberg was mayor of NYC for 12 years. During that period he opposed raising taxes on the rich. He also showed what he thought about the various classes by making sure that upper Manhattan (where his fellow billionaires often live) got taken care of but the other boroughs (where the working class often live) received scant attention or real resources. OK – he was a better mayor than RUDY G. but that is a very low bar.

    [Jan 19, 2020] Inequality in the USA has reached an 100-year record high

    Jan 19, 2020 | www.moonofalabama.org

    vk , Jan 18 2020 13:29 utc | 135

    @ Posted by: V | Jan 18 2020 9:49 utc | 118

    Inequality in the USA has reached an 100-year record high:

    It's not the 1% anymore but the 0.1%!

    The top 0.1% of US wealth holders now have as much wealth (property, financial assets) as the bottom 90% for the first time since the 'roaring 20s'.

    It's not the 1% anymore but the 0.1%!

    [Jan 19, 2020] Death and Neglect in the 7th Fleet

    Jan 19, 2020 | www.propublica.org

    . A firsthand account from a U.S. Naval officer is eye opening (emphasis mine).

    He'd seen his ship, one of the Navy's fleet of 11 minesweepers, sidelined by repairs and maintenance for more than 20 months. Once the ship, based in Japan, returned to action, its crew was only able to conduct its most essential training -- how to identify and defuse underwater mines -- for fewer than 10 days the entire next year . During those training missions, the officer said, the crew found it hard to trust the ship's faulty navigation system: It ran on Windows 2000.

    Sonar which identifies dishwashers, crab traps and cars as possible mines, can hardly be considered a rebuilt military. The Navy's eleven minesweepers built more than 25 years ago, have had their decommissioning continually delayed because no replacement plan was implemented. I'll await the deeper understanding of 'deterrence' from b, even as I consider willingness to commit and brag about war crimes as beyond the point of no return.

    Posted by: psychedelicatessen | Jan 19 2020 9:14 utc |