#not seeing the inherent difference between ultra rich and middle class and poor

[spacecasehobbit]

One of the most character defining moments for Oliver is when he arrives early to Saltburn and... walks up through the unlocked gates to knock on the door, because this is his friend's house that he was invited to, so why wouldn't he walk up to the front door, through the unlocked gates, to just knock on the door??

Like, people come up with all sorts of convoluted class discussion, but really? Who here hasn't had a friend who invited them over, who also had a little fence and a gate around their front yard, so when you went over to their house you just knew that you were fine opening the gate and walking up to their door to knock? Because you were invited, and this was your friend's house, and that's just... a thing that you can do?

Yet when Oliver is invited to his friend's house, and he arrives a little bit early, and he notices hey! there are gates here, that are unlocked! and he walks up through those unlocked gates to knock on the door to his friend's house that he was explicitely invited to? Duncan answers the door and is instantly confused because??? We sent a car for you?? The gates weren't OPEN??? But to Oliver?

Yeah the gates weren't open. But they also weren't locked.

And if the gate isn't locked? Then why shouldn't Oliver walk right through it once he's got an invitation?

[robertreich]

The System: Who Rigged It, How We Fix It 

The coronavirus has starkly revealed what most of us already knew: The concentration of wealth in America has created a a health care system in which the wealthy can buy care others can't. 

It’s also created an education system in which the super-rich can buy admission to college for their children, a political system in which they can buy Congress and the presidency,  and a justice system in which they can buy their way out of jail. 

Almost everyone else has been hurled into a dystopia of bureaucratic arbitrariness, corporate indifference, and the legal and financial sinkholes that have become hallmarks of modern American life. The system is rigged. But we can fix it. Today, the great divide in American politics isn’t between right and left. The underlying contest is between a small minority who have gained power over the system, and the vast majority who have little or none. 

Forget politics as you’ve come to see it -- as contests between Democrats and Republicans. The real divide is between democracy and oligarchy.

The market has been organized to serve the wealthy. Since 1980, the percentage of the nation’s wealth owned by the richest four hundred Americans has quadrupled (from less than 1 percent to 3.5 percent) while the share owned by the entire bottom half of America has dropped to 1.3 percent.

The three wealthiest Americans own as much as the entire bottom half of the population. Big corporations, CEOs, and a handful of extremely rich people have vastly more influence on public policy than the average American. Wealth and power have become one and the same. As the oligarchs tighten their hold over our system, they have lambasted efforts to rein in their greed as “socialism”, which, to them, means getting something for doing nothing.

But “getting something for doing nothing” seems to better describe the handouts being given to large corporations and their CEOs. 

General Motors, for example, has received $600 million in federal contracts and $500 million in tax breaks since Donald Trump took office. Much of this “corporate welfare” has gone to executives, including CEO Mary Barra, who raked in almost $22 million in compensation in 2018 alone. GM employees, on the other hand, have faced over 14,000 layoffs and the closing of three assembly plants and two component factories.

And now, in the midst of a pandemic, big corporations are getting $500 billion from taxpayers. 

Our system, it turns out, does practice one form of socialism -- socialism for the rich. Everyone else is subject to harsh capitalism.

Socialism for the rich means people at the top are not held accountable. Harsh capitalism for the many, means most Americans are at risk for events over which they have no control, and have no safety nets to catch them if they fall.

Among those who are particularly complicit in rigging the system are the CEOs of America’s corporate behemoths. 

Take Jamie Dimon, the CEO of JPMorgan Chase, whose net worth is $1.4 billion. He comes as close as anyone to embodying the American system as it functions today.

Dimon describes himself as “a patriot before I’m the CEO of JPMorgan.” He brags about the corporate philanthropy of his bank, but it’s a drop in the bucket compared to his company’s net income, which in 2018 was $30.7 billion -- roughly one hundred times the size of his company's investment program for America’s poor cities. 

Much of JP Morgan’s income gain in 2018 came from savings from the giant Republican tax cut enacted at the end of 2017 -- a tax cut that Dimon intensively lobbied Congress for.

Dimon doesn’t acknowledge the inconsistencies between his self-image as “patriot first” and his role as CEO of America’s largest bank. He doesn’t understand how he has hijacked the system.

Perhaps he should read my new book.

To understand how the system has been hijacked, we must understand how it went from being accountable to all stakeholders -- not just stockholders but also workers, consumers, and citizens in the communities where companies are headquartered and do business -- to intensely shareholder-focused capitalism.

In the post-WWII era, American capitalism assumed that large corporations had responsibilities to all their stakeholders. CEOs of that era saw themselves as “corporate statesmen” responsible for the common good.

But by the 1980s, shareholder capitalism (which focuses on maximizing profits) replaced stakeholder capitalism. That was largely due to the corporate raiders -- ultra-rich investors who hollowed-out once-thriving companies and left workers to fend for themselves.

Billionaire investor Carl Icahn, for example, targeted major companies like Texaco and Nabisco by acquiring enough shares of their stock to force major changes that increased their stock value -- such as suppressing wages, fighting unions, laying off workers, abandoning communities for cheaper labor elsewhere, and taking on debt -- and then selling his shares for a fat profit. In 1985, after winning control of Trans World Airlines, he loaded the airline with more than $500 million in debt, stripped it of its assets, and pocketed nearly $500 million in profits.

As a result of the hostile takeovers mounted by Icahn and other raiders, a wholly different understanding about the purpose of the corporation emerged.

Even the threat of hostile takeovers forced CEOs to fall in line by maximizing shareholder profits over all else. The corporate statesmen of previous decades became the corporate butchers of the 1980s and 1990s, whose nearly exclusive focus was to “cut out the fat” and make their companies “lean and mean.”

As power increased for the wealthy and large corporations at the top, it shifted in exactly the opposite direction for workers. In the mid-1950s, 35 percent of all private-sector workers in the United States were unionized. Today, 6.4 percent of them are.

The wave of hostile takeovers pushed employers to raise profits and share prices by cutting payroll costs and crushing unions, which led to a redistribution of income and wealth from workers to the richest 1 percent. Corporations have fired workers who try to organize and have mounted campaigns against union votes. All the while, corporations have been relocating to states with few labor protections and so-called “right-to-work” laws that weaken workers’ ability to join unions.

Power is a zero-sum game. People gain it only when others lose it. The connection between the economy and power is critical. As power has concentrated in the hands of a few, those few have grabbed nearly all the economic gains for themselves.

The oligarchy has triumphed because no one has paid attention to the system as a whole – to the shifts from stakeholder to shareholder capitalism, from strong unions to giant corporations with few labor protections, and from regulated to unchecked finance.

As power has shifted to large corporations, workers have been left to fend for themselves. Most Americans developed 3 key coping mechanisms to keep afloat.

The first mechanism was women entering the paid workforce. Starting in the late 1970s, women went into paid work in record numbers, in large part to prop up family incomes, as the wages of male workers stagnated or declined. 

Then, by the late 1990s, even two incomes wasn’t enough to keep many families above water, causing them to turn to the next coping mechanism: working longer hours. By the mid-2000s a growing number of people took on two or three jobs, often demanding 50 hours or more per week.

Once the second coping mechanism was exhausted, workers turned to their last option: drawing down savings and borrowing to the hilt. The only way Americans could keep consuming was to go deeper into debt. By 2007, household debt had exploded, with the typical American household owing 138 percent of its after-tax income. Home mortgage debt soared as housing values continued to rise. Consumers refinanced their homes with even larger mortgages and used their homes as collateral for additional loans.

This last coping mechanism came to an abrupt end in 2008 when the debt bubbles burst, causing the financial crisis. Only then did Americans begin to realize what had happened to them, and to the system as a whole. That’s when our politics began to turn ugly.  

So what do we do about it? The answer is found in politics and rooted in power.

The way to overcome oligarchy is for the rest of us to join together and form a multiracial, multiethnic coalition of working-class, poor and middle-class Americans fighting for democracy.

This agenda is neither “right” nor “left.” It is the bedrock for everything America must do.

The oligarchy understands that a “divide-and-conquer” strategy gives them more room to get what they want without opposition. Lucky for them, Trump is a pro at pitting native-born Americans against immigrants, the working class against the poor, white people against people of color. His goal is cynicism, disruption, and division. Trump and the oligarchy behind him have been able to rig the system and then whip around to complain loudly that the system is rigged.

But history shows that oligarchies cannot hold on to power forever. They are inherently unstable. When a vast majority of people come to view an oligarchy as illegitimate and an obstacle to their wellbeing, oligarchies become vulnerable.

As bad as it looks right now, the great strength of this country is our resilience. We bounce back. We have before. We will again.

In order for real change to occur -- in order to reverse the vicious cycle in which we now find ourselves -- the locus of power in the system will have to change.

The challenge we face is large and complex, but we are well suited for the fight ahead. Together, we will dismantle the oligarchy. Together, we will fix the system.

[disembodiedapparition]

Neoliberalism: explained

Neoliberalism is a concept that has largely shaped the world we live in today. First popularized in the 1980s by world leaders like Ronald Reagan and Margaret Thatcher, it was the successor to the Keynesian economic system that most developed nations had adopted post World War 2. However, for a system as influential as it is, there’s still a great deal of confusion about what it really stands for and whether it’s ideal for a strong economy or not.

Neoliberalism is a school of thought that believes that every human interaction is driven by greed. In other words, people’s actions, relationships, and choices are all motivated by what that person might gain economically from them. Neoliberalism argues that self-interest is the driving force for any economy and for human progress as a whole, and that it should be encouraged rather than treated as a vice. It also posits that the competition an individual may face while propelling their self-interests would only encourage them to work harder and produce a product or service that meets a much higher standard. Without adequate competition, people are less motivated to do the very best they can – their consumers simply have no alternative to buy from.

Although this particular school of thought is often referred to as “capitalism”, it’s important to remember that by definition, a capitalist system is simply a system that aims to acquire capital, or profit. Neoliberalism, the system that many developed countries still incorporate into their economic systems today, is a type of capitalism – it promotes economic gain by increasing market competition and advocating for more privatized industries over public (government owned) ones.

The term “neoliberalism” in today’s context can be a little confusing, especially since the word “liberal” is commonly associated with civil rights and social equality advocacy (the ideals that these movements revolve around actually support government run industries and propose a tilt of the current economic model towards socialism). However, the “liberalism” that the term originated from referred to economic liberation – that is, a transfer of economic power from the government to individuals. It was popularized in the 19th  century, and has dominated the global economy ever since.

After the Cold War, the people were largely turned off by capitalism. The economic crises and recessions of the 1920-30s were fresh in mind, and it was clear that a new system, that would prevent the economy from crashing periodically, had to be drawn up. Robert Dahl and Charles Lindblom concluded that “both socialism and capitalism [were] dead”, and the Keynesian economic system subsequently adopted a blend of the two – it recognized the importance of market competition and individual economic liberty, while also implementing policy interventions aimed to curb the inherent flaws in capitalism that so often resulted in financial breakdowns, depressions, or mass unemployment epidemics. This system soon began rising in popularity in previously neoliberal nations, and for good reason. Their economies were booming, and growing at consistent rates.

However, in the early 1970s, the Keynesian system started to see another recession coming its way. The reasons for this recession were external and had little to do with the economic model being followed, but the economic elites who previously profited off capitalism began panicking, worried that their wealth may be in danger. The elites understood that a compromise was necessary following the devastating impacts of the war, and they were willing to share their wealth with the masses. However, once they felt that this wealth was in danger, they began advocating reverting to the old capitalist system – marketed to the people as a new one called neoliberalism.

The idea posited by Keynesian economists that government regulation was necessary to keep big industries in check, avoid future economic breakdowns, and protect the interests of the environment, the society, and every individual was rebranded as an overextension of power and an attack on individual liberties. It’s also important to note that during this time, the anti- Vietnam war crowd was also resentful of the restrictions that were placed on behavior and thought, and the way that government mandated controls were being implemented all over the country. This greatly contributed to the rhetoric that government intervention was bad and needed to be shut down.

All of this was only talk, however, until neoliberal leaders like Thatcher and Reagan were elected into office. They each began reforming their respective governments – loosening regulations on industries, de-centralizing certain industries (like telecommunication or energy production), and cutting down taxes on the people, mainly the economic elites. By the time Reagan was out of office, the highest tax that an individual in the U.S could pay dropped from 70% to 28%. The rationale was that the wealthiest people in society, when taxed less by the government, would use their wealth to make larger investments that would, in turn, lead to astronomical economic growth which would benefit everyone. This proposed chain of events is often called the trickle- down economic theory, and is still referenced today (U.S. President Donald Trump used it to justify his tax cuts on the wealthy).

However, as Owen Zidar has recently shown in a research study published in the Journal of Political Economy, the assumption that the wealthy would use saved tax dollars to create jobs, foster economic growth, or bridge the gap between the rich and poor is a fallacy. Instead, he found that they are actually more likely to simply hoard their wealth. The U.S, which currently taxes its billionaires at a rate of 23% (while the average tax rate for the public is 28%), is one of the best examples of the massive wealth inequalities triggered by relying on trickle-down economics – as of 2013, the top 10% possessed 76% of the country’s wealth, while the bottom 50% only possessed 1%. Back when the ultra-rich were taxed heavily, the government implemented welfare programs which sought to stabilize this gap, but neoliberal economic policies provided a way for the wealthy to keep national wealth all to themselves – which doesn’t promote economic growth at all.

Today, neoliberalism’s biggest advocates are right wing or conservative parties, although the term itself might indicate otherwise. However, not many openly identify with the label, as it’s gained a bad reputation because of leaders like Pinochet, the former President of Chile. Although Chile’s economy did much better than her Latin American counterparts and she experienced a sharp decrease in poverty levels, the rampant inequality that neoliberalism inevitably triggered led to a divide between the business/political elite and the people of Chile, sparking nationwide protests and a call for more public provisions and greater taxes on the wealthy. However, the ideas of unregulated industries, privatized businesses, and minimal government interference are still hugely popular. Countries like the U.S, which were founded on individualist over monarchial government systems, often claim that the free market capitalism that neoliberalism champions is one of the core values of the nation, and cannot be compromised on.

Not only has neoliberalism led to an increase in wealth and income inequality, but it has also stripped power away from governments and given it to powerful and wealthy multinational companies. For example, the way that governments were forced to immediately fold and bail the banks out in the wake of the financial crisis of 2008, and the inability of governments to prevent social media platforms from infringing on the integrity of their own elections - or even force them to attempt to do so. Governments are becoming increasingly powerless in comparison to the ultra-rich. Ironically, even though neoliberal ideals acknowledge that the government still plays a small role in the economy, the nature of the system enables large corporations to accumulate enough wealth and power to influence the few decisions that the government actually gets to make. For example, a corporation that is essentially a pillar of the economy – providing millions of jobs and paying a large percent of the tax the government receives from its people – could threaten to relocate to a different country if they don’t comply with their demands.

Neoliberalism is a very unique system of organizing society. It’s played a massive role in shaping the world we live in today, and even though the label has been defamed, the ideas that propelled the revolution are still highly popular today. Today, political parties remain conflicted over whether Keynesian or Neoliberal economics are the best way to minimize adversity and maximize economic growth. David Harvey has classified neoliberalism as “a project to achieve the restoration of class power”, and unfortunately, this holds true. Decades of neoliberal reforms have stacked the odds increasingly in favor of the ultra-rich and the billionaires, and have dug the economic lower and middle classes further into poverty and debt. In addition, the idea has changed the way we think about the world, and invited us to view society as a market, where every interaction is made out of self-interest, and where economic gain is the only kind of gain you could ever hope to make in your lifetime.

“Neoliberalism is the flood that raises those who can afford ships and drowns those who cannot.”

[truck-fump]

The System: Who Rigged It, How We Fix It The coronavirus has...

New Post has been published on https://truckfump.life/2020/03/24/the-system-who-rigged-it-how-we-fix-it-the-coronavirus-has/

The System: Who Rigged It, How We Fix It The coronavirus has...

The System: Who Rigged It, How We Fix It 

The coronavirus has starkly revealed what most of us already knew: The concentration of wealth in America has created a a health care system in which the wealthy can buy care others can’t. 

It’s also created an education system in which the super-rich can buy admission to college for their children, a political system in which they can buy Congress and the presidency,  and a justice system in which they can buy their way out of jail. 

Almost everyone else has been hurled into a dystopia of bureaucratic arbitrariness, corporate indifference, and the legal and financial sinkholes that have become hallmarks of modern American life.

The system is rigged. But we can fix it.

Today, the great divide in American politics isn’t between right and left. The underlying contest is between a small minority who have gained power over the system, and the vast majority who have little or none. 

Forget politics as you’ve come to see it – as contests between Democrats and Republicans. The real divide is between democracy and oligarchy.

The market has been organized to serve the wealthy. Since 1980, the percentage of the nation’s wealth owned by the richest four hundred Americans has quadrupled (from less than 1 percent to 3.5 percent) while the share owned by the entire bottom half of America has dropped to 1.3 percent [Saez & Zucman]. 

The three wealthiest Americans own as much as the entire bottom half of the population. Big corporations, CEOs, and a handful of extremely rich people have vastly more influence on public policy than the average American. Wealth and power have become one and the same.

As the oligarchs tighten their hold over our system, they have lambasted efforts to rein in their greed as “socialism”, which, to them, means getting something for doing nothing.

But “getting something for doing nothing” seems to better describe the handouts being given to large corporations and their CEOs. General Motors, for example, has received $600 million in federal contracts and $500 million in tax breaks since Donald Trump took office. Much of this “corporate welfare” has gone to executives, including CEO Mary Barra, who raked in almost $22 million in compensation in 2018 alone. GM employees, on the other hand, have faced over 14,000 layoffs and the closing of three assembly plants and two component factories.

Our system, it turns out, does practice one form of socialism – socialism for the rich. Everyone else is subject to harsh capitalism.

Socialism for the rich means people at the top are not held accountable. Harsh capitalism for the many, means most Americans are at risk for events over which they have no control, and have no safety nets to catch them if they fall.

Among those who are particularly complicit in rigging the system are the CEOs of America’s corporate behemoths. 

Take Jamie Dimon, the CEO of JPMorgan Chase, whose net worth is $1.4 billion. He comes as close as anyone to embodying the American system as it functions today.

Dimon describes himself as “a patriot before I’m the CEO of JPMorgan.”

He brags about the corporate philanthropy of his bank, but it’s a drop in the bucket compared to his company’s net income, which in 2018 was $30.7 billion – roughly one hundred times the size of his company’s investment program for America’s poor cities. 

Much of JP Morgan’s income gain in 2018 came from savings from the giant Republican tax cut enacted at the end of 2017 – a tax cut that Dimon intensively lobbied Congress for.

Dimon doesn’t acknowledge the inconsistencies between his self-image as “patriot first” and his role as CEO of America’s largest bank. He doesn’t understand how he has hijacked the system.

Perhaps he should read my new book.

To understand how the system has been hijacked, we must understand how it went from being accountable to all stakeholders – not just stockholders but also workers, consumers, and citizens in the communities where companies are headquartered and do business – to intensely shareholder-focused capitalism.

In the post-WWII era, American capitalism assumed that large corporations had responsibilities to all their stakeholders. CEOs of that era saw themselves as “corporate statesmen” responsible for the common good.

But by the 1980s, shareholder capitalism (which focuses on maximizing profits) replaced stakeholder capitalism. That was largely due to the corporate raiders – ultra-rich investors who hollowed-out once-thriving companies and left workers to fend for themselves.

Billionaire investor Carl Icahn, for example, targeted major companies like Texaco and Nabisco by acquiring enough shares of their stock to force major changes that increased their stock value – such as suppressing wages, fighting unions, laying off workers, abandoning communities for cheaper labor elsewhere, and taking on debt – and then selling his shares for a fat profit. In 1985, after winning control of Trans World Airlines, he loaded the airline with more than $500 million in debt, stripped it of its assets, and pocketed nearly $500 million in profits.

As a result of the hostile takeovers mounted by Icahn and other raiders, a wholly different understanding about the purpose of the corporation emerged.

Even the threat of hostile takeovers forced CEOs to fall in line by maximizing shareholder profits over all else. The corporate statesmen of previous decades became the corporate butchers of the 1980s and 1990s, whose nearly exclusive focus was to “cut out the fat” and make their companies “lean and mean.”

As power increased for the wealthy and large corporations at the top, it shifted in exactly the opposite direction for workers. In the mid-1950s, 35 percent of all private-sector workers in the United States were unionized. Today, 6.4 percent of them are.

The wave of hostile takeovers pushed employers to raise profits and share prices by cutting payroll costs and crushing unions, which led to a redistribution of income and wealth from workers to the richest 1 percent. Corporations have fired workers who try to organize and have mounted campaigns against union votes. All the while, corporations have been relocating to states with few labor protections and so-called “right-to-work” laws that weaken workers’ ability to join unions.

Power is a zero-sum game. People gain it only when others lose it. The connection between the economy and power is critical. As power has concentrated in the hands of a few, those few have grabbed nearly all the economic gains for themselves.

The oligarchy has triumphed because no one has paid attention to the system as a whole – to the shifts from stakeholder to shareholder capitalism, from strong unions to giant corporations with few labor protections, and from regulated to unchecked finance.

As power has shifted to large corporations, workers have been left to fend for themselves. Most Americans developed 3 key coping mechanisms to keep afloat.

The first mechanism was women entering the paid workforce. Starting in the late 1970s, women went into paid work in record numbers, in large part to prop up family incomes, as the wages of male workers stagnated or declined. Then, by the late 1990s, even two incomes wasn’t enough to keep many families above water, causing them to turn to the next coping mechanism: working longer hours. By the mid-2000s a growing number of people took on two or three jobs, often demanding 50 hours or more per week.

Once the second coping mechanism was exhausted, workers turned to their last option: drawing down savings and borrowing to the hilt. The only way Americans could keep consuming was to go deeper into debt. By 2007, household debt had exploded, with the typical American household oweing 138 percent of its after-tax income. Home mortgage debt soared as housing values continued to rise. Consumers refinanced their homes with even larger mortgages and used their homes as collateral for additional loans.

This last coping mechanism came to an abrupt end in 2008 when the debt bubbles burst, causing the financial crisis. Only then did Americans begin to realize what had happened to them, and to the system as a whole. That’s when our politics began to turn ugly.  

So what do we do about it?

The answer is found in politics and rooted in power.

The way to overcome oligarchy is for the rest of us to join together and form a multiracial, multiethnic coalition of working-class, poor and middle-class Americans fighting for democracy.

This agenda is neither “right” nor “left.” It is the bedrock for everything America must do.

The oligarchy understands that a “divide-and-conquer” strategy gives them more room to get what they want without opposition. Lucky for them, Trump is a pro at pitting native-born Americans against immigrants, the working class against the poor, white people against people of color. His goal is cynicism, disruption, and division. Trump and the oligarchy behind him have been able to rig the system and then whip around to complain loudly that the system is rigged.

But history shows that oligarchies cannot hold on to power forever. They are inherently unstable. When a vast majority of people come to view an oligarchy as illegitimate and an obstacle to their wellbeing, oligarchies become vulnerable.

As bad as it looks right now, the great strength of this country is our resilience. We bounce back. We have before. We will again.

In order for real change to occur – in order to reverse the vicious cycle in which we now find ourselves – the locus of power in the system will have to change.

The challenge we face is large and complex, but we are well suited for the fight ahead.

Together, we will dismantle the oligarchy.

Together, we will fix the system.