Archive for category Economic Exploitation
While a major media news blackout provides cover, Congress is debating whether to give the president the authority to fast-track a massive free trade agreement, the secretly-negotiated Trans Pacific Partnership (TPP). Members of Congress haven’t even been able to read it even though corporate lobbyists have.
President Obama is at odds with Democrats in both houses of Congress concerning reauthorizing a procedure called the “trade promotion authority” (TPA), that would grant the White House power to submit free trade deals to Congress for an up-or-down vote without amendments. Senate Majority Leader Harry Reid is strongly against it.
House Minority Leader Nancy Pelosi has now publicly opposed giving President Obama fast track authority.
“We need transparency. We need a seat at the table to understand what they believe they are doing, so we can make it better. And if we don’t make it better, then we will not accept a path that is a job loser.”
TPP is part of the plan for global corporatocracy run by and for the 1 Percent. Unelected lobbyists and trade representatives are at the table, while representatives from the public at large and businesses other than huge monopolies, are conspicuously absent. From what little we know of the agreement, it would violate the U.S. Constitution, weaken environmental protections, and lead to more job losses, erosion of wages, and worsening inequality. TPP also threatens freedom of speech on the Internet because it would extend restrictive intellectual property laws and rewrite international rules on enforcement.
A couple key passages:
The US elites, similarly, took the smooth functioning of the political-economic system for granted. The only problem, as they saw it, was that they weren’t being adequately compensated for their efforts. Feelings of dissatisfaction ran high during the Bear Market of 1973—82, when capital returns took a particular beating. The high inflation of that decade ate into inherited wealth. A fortune of $2 billion in 1982 was a third smaller, when expressed in inflation-adjusted dollars, than $1 billion in 1962, and only a sixth of $1 billion in 1912. All these factors contributed to the reversal of the late 1970s.
Three years ago I published a short article in the science journal Nature. I pointed out that several leading indicators of political instability look set to peak around 2020. In other words, we are rapidly approaching a historical cusp, at which the US will be particularly vulnerable to violent upheaval. This prediction is not a ‘prophecy’. I don’t believe that disaster is pre-ordained, no matter what we do. On the contrary, if we understand the causes, we have a chance to prevent it from happening. But the first thing we will have to do is reverse the trend of ever-growing inequality.
And finally this one:
How does growing economic inequality lead to political instability? Partly this correlation reflects a direct, causal connection. High inequality is corrosive of social cooperation and willingness to compromise, and waning cooperation means more discord and political infighting. Perhaps more important, economic inequality is also a symptom of deeper social changes, which have gone largely unnoticed.
The following retailers have killed Thanksgiving for their employees and families. Don’t let them kill your holiday, too.
- Old Navy
- Office Max
- Best Buy
- Toys R Us
- J.C. Penney
The good news is that Costco, Nordstrom, REI, Burlington Coat Factory, and other companies are refusing to ruin Thanksgiving.
And don’t forget: Friday, November 29 is “Black Friday,” aka Buy Nothing Day. A good day to take a day off from shopping, or visit a locally-owned business. Feel free to laugh at those idiots freezing on line in a parking lot to get an XBox.
Today is the anniversary of NOT raising the minimum wage. Again. Four years ago, the federal minimum wage topped out at $7.25 an hour as a result of a law signed by President George W. Bush. A full-time worker earning the minimum wage now pulls in a salary of about $15,000 per year, far below a living wage. If Congress doesn’t send President Obama legislation to sign by the end of his second term, he will be the first president since Ronald Reagan who didn’t raise the minimum wage at all.
Via Raw Story:
In a letter (PDF) sent to Federal Reserve Chairman Ben Bernanke, Attorney General Eric Holder and SEC Chair Mary Jo White on Tuesday, Sen. Elizabeth Warren (D-MA) demanded to know why the government keeps accepting financial settlements from criminal bankers when they could instead be taken to trial, convicted and locked up.
Senator Warren wrote (emphasis added):
The consequence can be insufficient compensation to those who are harmed by illegal activity and inadequate deterrence of future violations. If large financial institutions can break the law and accumulate millions in profits and, if they get caught, settle by paying out of those profits, they do not have much incentive to follow the law.
Tax time is coming in less than a month. Unless you’re with the 1 Percent, it will cost you. Paul Buchheit on AlterNet:
Corporations have simply stopped paying their taxes, perhaps using the 2008 recession as an excuse to plead hardship, but then never restoring their tax obligations when business got better. The facts are indisputable. For over 20 years, from 1987 to 2008, corporations paid an average of 22.5% in federal taxes. Since the recession, this has dropped to 10% — even though their profits have doubled in less than ten years.
We’re in “a golden age for corporate profits,” according to the New York Times. But not a golden age of job creation. In fact, some of the biggest and most profitable corporations are dodging taxes while cutting jobs. The list includes: General Electric, Boeing, Exxon Mobil, Verizon, Kraft Foods, Citigroup, Dow Chemical, IBM, Chevron, FedEx, Honeywell, Apple, Pfizer, Google, and Microsoft.
N.J. taxpayers protest corporate ‘dodgers’
Wealth Inequality in America
Infographics on the distribution of wealth in America, highlighting both the inequality and the difference between our perception of inequality and the actual numbers. The reality is often not what we think it is.
It’s the Inequality, Stupid
Wealth Inequality in America
How Unequal We Are: The Top 5 Facts You Should Know About The Wealthiest One Percent Of Americans
CEO pay is 380 times average worker’s
Recently we learned that real disposable income was down in January, partly due to the payroll tax hike that was part of the “fiscal cliff” deal. The federal government went over the so-called “cliff” anyway.
Today there was a party on Wall Street as the Dow Jones industrial average reached a record high shortly after the opening bell. It’s on track to close above the previous record of 14,164 reached on Oct. 9, 2007. It’s up 7.8 percent for the year. Some call it a “TINA market,” for “there is no alternative.” Interest on savings and bond yields are at rock bottom due to Fed policy, forcing investors to rely on stocks.
However, as Pat Garofalo points out on Think Progress, workers’ wages as a percentage of the economy are hovering near record lows.
Hey, check out what happened with wages during the Clinton administration (1993-2000). Only time since 1970 that wages recovered after a recession.
As Quartz’s Matt Phillips put it, “in many ways Americans are still sucking wind after the gut punch they suffered in 2008.” In fact, the richest 1 percent of Americans have captured 121 percent of the income gains achieved during the current recovery, meaning everyone else has actually lost ground in terms of income since the economy bottomed out.
Those jobs we lost in Bush’s Great Recession have either not come back, or they have been replaced by lower-paying jobs. Party on, Wall Street.
Robert Reich: Why There’s a Bull Market for Stocks and a Bear Market for Workers
Rarely before in American history have public policies so radically helped the most fortunate among us, so cruelly harmed the least fortunate, and exposed so many average working Americans to such widespread insecurity.