bureaucracybusters

Posts Tagged ‘INCOME INEQUALITY’

THE CORRUPTIONS OF THE RICH: PART TWO (END)

In Bureaucracy, Business, History, Law, Politics, Social commentary on April 29, 2022 at 12:11 am

The gap between rich and poor in the United States has never been greater.

A May 1, 2018 article in Forbes—which bills itself as “The Capitalist Tool”—vividly documents this truth.

“In the 1950s, a typical CEO made 20 times the salary of his or her average worker. Last year, [2017] CEO pay at an S&P 500 Index firm soared to an average of 361 times more than the average rank-and-file worker, or pay of $13,940,000 a year, according to an AFL-CIO’s Executive Paywatch news release today.”

The average CEO pay climbed six percent in 2017—while the average production worker earned just $38,613, according to Executive Paywatch.

The average wage—adjusted for inflation—has stagnated for more than 50 years. Meanwhile, CEOs’ average pay since the 1950s has risen by 1000%.

This would not have been news to Niccolo Machiavelli, the father of modern political science. In his masterwork, The Discourses, he observed the human condition as that of constant struggle: 

Portrait of Niccolò Machiavelli by Santi di Tito.jpg

Niccolo Machiavelli

“It was a saying of ancient writers, that men afflict themselves in evil, and become weary of the good, and that both these dispositions produce the same effects. 

“For when men are no longer obliged to fight from necessity, they fight from ambition, which passion is so powerful in the hearts of men that it never leaves them, no matter to what height they may rise. 

“The reason for this is that nature has created men so that they desire everything, but are unable to attain it. Desire being thus always greater than the faculty of acquiring, discontent with what they have and dissatisfaction with themselves result from it. 

“This causes the changes in their fortunes—for as some men desire to have more, while others fear to lose what they have, enmities and war are the consequences. And this brings about the ruin of one province and the elevation of another.”

Author Walter Scheidel, Dickason Professor in the Humanities, Professor of Classics and History at Stanford University, has also given this subject a great deal of thought. And, like Machiavelli, he has reached some highly disturbing conclusions.

Walter Scheidel - Annual Meeting of the New Champions 2012.jpg

Walter Scheidel

World Economic Forum [CC BY-SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0)%5D

Scheidel gave voice to these in his 2017 book, The Great Leveler: Violence and the History of Inequality from the Stone Age to the Twenty-First Century. His thesis: Only violence and catastrophes have consistently reduced inequality throughout history

According to the book’s jacket blurb: Are mass violence and catastrophes the only forces that can seriously decrease economic inequality? To judge by thousands of years of history, the answer is yes.

“Tracing the global history of inequality from the Stone Age to today, Walter Scheidel shows that inequality never dies peacefully. Inequality declines when carnage and disaster strike and increases when peace and stability return.

Related image

“The Great Leveler is the first book to chart the crucial role of violent shocks in reducing inequality over the full sweep of human history around the world.

“Ever since humans began to farm, herd livestock, and pass on their assets to future generations, economic inequality has been a defining feature of civilization. Over thousands of years, only violent events have significantly lessened inequality.

“The ‘Four Horsemen’ of leveling—mass-mobilization warfare, transformative revolutions, state collapse, and catastrophic plagues—have repeatedly destroyed the fortunes of the rich….

“Today, the violence that reduced inequality in the past seems to have diminished, and that is a good thing. But it casts serious doubt on the prospects for a more equal future.”

Revolutionaries have known the truth of Scheidel’s findings from the gladiators’ revolt of Spartacus (73 – 71 B.C.) to the French Revolution (1789 – 1799) to the overthrow of the Czarist Romanov dynasty (1917).

But American politicians serenely ignore that truth. They depend on the mega-rich for millions of dollars in “campaign contributions”—which pay for self-glorifying ads on TV.

Thus, in 2016, American voters had a “choice” between two “love-the-rich” Presidential candidates: Donald Trump and Hillary Clinton. The result was that millions stayed home or voted in protest for third-party candidates who had no chance of winning.

In his 1975 book, The Corrupt Society: From Ancient Greece to Modern-day America, British historian Robert Payne warned that the predatory rich would not change their behavior: “Nor is there any likelihood that the rich will plow back their money into services to ensure the general good.

“They have rarely demonstrated social responsibility, and they are much more likely to hold on to their wealth at all costs than to renounce any part of it.

“Like the tyrant who lives in a world wholly remote from the world of the people, shielded and protected from all possible influences, the rich are usually the last to observe the social pressures rising from below, and when these social pressures reach flashpoint, it is too late to call in the police or the army.

“The tyrant dies; the police and the army go over to the revolutionaries; and the new government dispossesses the rich by decree. A single authoritative sentence suffices to expunge all private wealth and restore it to the service of the nation.”

For millions of struggling, impoverished Americans, that day cannot come soon enough.

THE CORRUPTIONS OF THE RICH: PART ONE (OF TWO)

In Bureaucracy, Business, History, Law, Politics, Social commentary on April 28, 2022 at 12:31 am

Americans are used to Presidential candidates telling lies (euphemistically known as “campaign promises”) to get elected.

But when a candidate actually (and usually accidentally) tells the truth, the results can be electrifying. And sometimes devastating for the candidate.

On June 18, 2019, Democratic Presidential candidate (and momentary front-runner) Joseph Biden addressed a roomful of donors in New York. 

The former Vice President believed that his message would comfort his well-heeled audience of billionaires: Don’t worry, if I’m elected, your standard of living won’t change.

Addressing the 100 or so guests at a fundraiser at the Carlyle Hotel in New York City, Biden said that he had taken heat from “some of the people on my team, on the Democratic side” because he had said that rich people were “just as patriotic as poor people.

Joe Biden presidential portrait.jpg

Joe Biden

“The truth of the matter is, you all, you all know, you all know in your gut what has to be done. We can disagree in the margins but the truth of the matter is it’s all within our wheelhouse and nobody has to be punished. No one’s standard of living will change, nothing would fundamentally change,” he said. 

And he added: “I mean, we may not want to demonize anybody who has made money.

Related image

“When we have income inequality as large as we have in the United States today, it brews and ferments political discord and basic revolution. Not a joke. Not a joke … It allows demagogues to step in and say the reason where we are is because of the ‘other’….

“You’re not the other. I need you very badly. I hope if I win this nomination, I won’t let you down. I promise you. I have a bad reputation, I always say what I mean. The problem is I sometimes say all that I mean.”

Biden had talked about decreasing income inequality and promoting workers’ rights. But he had also taken a moderate stance when it came to taxation.

United States Senator Bernie Sanders (D-VT), on the other hand, has attacked the ultra-rich as responsible for the ever-widening gap between themselves and the poor.

“I love Bernie, but I’m not Bernie Sanders. I don’t think 500 billionaires are the reason why we’re in trouble,” Biden said in March, 2019.

Instead, he proposed expanding tax credits for the poor and middle class, and making the tax code less friendly to rich investors. 

Robert Payne, the distinguished British historian, took a different—and darker—view of the rich.

Payne authored more than 110 books. Among his subjects were Adolf Hitler, Ivan the Terrible, Winston Churchill, Joseph Stalin, Vladimir Lenin, William Shakespeare and Leon Trotsky.

In 1975, he published The Corrupt Society: From Ancient Greece to Present-Day America. It proved a summary of many of his previous works.Related image

Among the epochs it covered: The civilizations of ancient Greece, Rome and China; Nazi Germany; the Soviet Union; and Watergate-era America. And the massive corruption each of those epochs had spawned.

Amazon.com: Robert Payne: Books, Biography, Blog, Audiobooks, Kindle

Robert Payne

In his chapter, “A View of the Uncorrupted Society,” Payne warned: Power and wealth are the main sources of corruption.

“The rich, simply by being rich, are infected with corruption. Their overwhelming desire is to grow richer, but they can do this only at the expense of those who are poorer than themselves.

”Their interests conflict with those of the overall society. They live sheltered from the constant anxieties of the poor, and thus cannot understand them.  Nor do they try to.”

They see the poor as alien from themselves, and thus come to fear and despise them. And their wealth and influence enables them to buy politicians—who, in turn, write legislation that protects the rich from the poor.

But Payne foresaw an even greater danger from the rich and powerful than their mere isolation from the rest of society: “The mere presence of the rich is corrupting. Their habits, their moral codes, their delight in conspicuous consumption are permanent affronts to the rest of humanity. Vast inequalities of wealth are intolerable in any decent society.”

Writing in 1975, Payne noted that a third of the private wealth was possessed by less than five percent of the population—while about a fifth of the populace lived at the poverty level. By 2000, he predicted, about five percent of the population would possess two-thirds of America’s wealth. And more than half the population would be near or below the starvation level. 

The result could only be catastrophe. The only way to halt this this increasing concentration of wealth by fewer people would be through law or violent revolution.

Payne has proven to be an uncanny prophet.

On December 8, 2017, the Seattle Times noted that the wealthiest one percent of Americans owned 40% of the country’s wealth. They owned more wealth than the bottom 90% combined. 

From 2013, the share of wealth owned by the one percent increased by nearly three percentage points. Wealth owned by the bottom 90%, meanwhile, fell over the same period.

But this situation need not remain permanent.

MACHIAVELLI WAS RIGHT: DISTRUST THE RICH

In Business, History, Law, Law Enforcement, Politics, Social commentary on March 31, 2022 at 12:14 am

For President Donald Trump and Congressional Republicans, the single greatest achievement of their time in office was to drastically cut taxes on the wealthy (including themselves).

It’s a view that Niccolo Machiavelli would dispute.        

In 1513, Machiavelli, the Florentine statesman who has been called the father of modern political science, published his best-known work: The Prince.

Quote by Machiavelli: “Necessity is what impels men to take action ...

Niccolo Machiavelli

Among the issues he confronted was how to preserve liberty within a republic. And key to this was mediating the eternal struggle between the wealthy and the poor and middle class.

Machiavelli deeply distrusted the nobility because they stood above the law. He saw them as a major source of corruption because they could buy influence through patronage, favors or nepotism.

Successful political leaders must attain the support of the nobility or general populace. But since these groups have conflicting interests, the safest course is to choose the latter.  

Writes Machiavelli:

….He who becomes prince by help of the [wealthy] has greater difficulty in maintaining his power than he who is raised by the populace. He is surrounded by those who think themselves his equals, and is thus unable to direct or command as he pleases. 

But one who is raised to leadership by popular favor finds himself alone, and has no one, or very few, who   are not  ready  to  obey him. [And] it is impossible to satisfy the [wealthy] by fair dealing and without inflicting injury upon others, whereas it is very easy to satisfy the mass of the people in this way. 

Machiavelli warns that the general populace is more honest than the nobility—i.e., wealthy. The wealthy seek to oppress, while the populace wants to simply avoid oppression.

A political leader cannot protect himself against a hostile population, owing to their numbers, but he can against the hostility of the great, as they are but few.

The worst that a prince has to expect from a hostile people is to be abandoned, but from hostile nobles he has to fear not only desertion but their active opposition. And as they are more far seeing and more cunning, they are always in time to save themselves and take sides with the one who they expect will conquer. 

The prince is, moreover, obliged to live always with the same people, but he can easily do without the same nobility, being able to make and unmake them at any time, and improve their position or deprive them of it as he pleases.

Unfortunately, political leaders throughout the world—including the United States–have ignored this sage advice.

In 2012, Tax Justice Network, which campaigns to abolish tax havens, commissioned a study of their effect on the world’s economy.

The study was entitled, “The Price of Offshore Revisited: New Estimates for ‘Missing’ Global Private Wealth, Income, Inequality and Lost Taxes.”

http://www.taxjustice.net/cms/upload/pdf/Price_of_Offshore_Revisited_120722.pdf

The research was carried out by James Henry, former chief economist at consultants McKinsey & Co.  Among its findings:

  • By 2010, at least $21 to $32 trillion of the world’s private financial wealth had been invested virtually tax-­free through more than 80 offshore secrecy jurisdictions.
  • Since the 1970s, with eager (and often aggressive and illegal) assistance from the international private banking industry, private elites in 139 countries had accumulated $7.3 to $9.3 trillion of unrecorded offshore wealth by 2010.
  • This happened while many of those countries’ public sectors were borrowing themselves into bankruptcy, suffering painful adjustment and low growth, and holding fire sales of public assets.
  • The assets of these countries are held by a small number of wealthy individuals while the debts are shouldered by the ordinary people of these countries through their governments.
  • The offshore industry is protected by pivate bankers, lawyers and accountants, who get paid handsomely to hide their clients’ assets and identities.
  • Bank regulators and central banks of most countries allow the world’s top tax havens and banks to hide the origins and ownership of assets under their supervision.
  • Although multilateral institutions like the Bank for International Settlements (BIS), the IMF and the World Bank are supposedly insulated from politics, they have been highly compromised by the collective interests of Wall Street.
  • These regulatory bodies have never required financial institutions to fully report their cross-­border customer liabilities, deposits, customer assets under management or under custody.
  • Less than 100,000 people, .001% of the world’s population, now control over 30% of the world’s financial wealth.
  • Assuming that global offshore financial wealth of $21 trillion earns a total return of just 3% a year, and would have been taxed an average of 30% in the home country, this unrecorded wealth might have generated tax revenues of $189 billion per year.

Summing up this situation, the report noted: “We are up against one of society’s most well-­entrenched interest groups. After all, there’s no interest group more rich and powerful than the rich and powerful.”

Fortunately, Machiavelli has supplied timeless remedies to this increasingly dangerous situation:

  • Assume evil among men—and most especially among those who possess the greatest concentration of wealth and power.
  • Carefully monitor their activities—the way the FBI now regularly monitors those of the Mafia and major terrorist groups.
  • Ruthlessly prosecute the treasonous crimes of the rich and powerful—and, upon their conviction, impose severe punishment.

THE CORRUPTIONS OF THE RICH: PART TWO (END)

In Bureaucracy, Business, History, Law, Politics, Social commentary on December 21, 2021 at 12:11 am

The gap between rich and poor in the United States has never been greater.

A May 1, 2018 article in Forbes—which bills itself as “The Capitalist Tool”—vividly documents this truth.

“In the 1950s, a typical CEO made 20 times the salary of his or her average worker. Last year, [2017] CEO pay at an S&P 500 Index firm soared to an average of 361 times more than the average rank-and-file worker, or pay of $13,940,000 a year, according to an AFL-CIO’s Executive Paywatch news release today.”

The average CEO pay climbed six percent in 2017—while the average production worker earned just $38,613, according to Executive Paywatch.

The average wage—adjusted for inflation—has stagnated for more than 50 years. Meanwhile, CEOs’ average pay since the 1950s has risen by 1000%.

This would not have been news to Niccolo Machiavelli, the father of modern political science. In his masterwork, The Discourses, he observed the human condition as that of constant struggle: 

Portrait of Niccolò Machiavelli by Santi di Tito.jpg

Niccolo Machiavelli

“It was a saying of ancient writers, that men afflict themselves in evil, and become weary of the good, and that both these dispositions produce the same effects. 

“For when men are no longer obliged to fight from necessity, they fight from ambition, which passion is so powerful in the hearts of men that it never leaves them, no matter to what height they may rise.    

“The reason for this is that nature has created men so that they desire everything, but are unable to attain it. Desire being thus always greater than the faculty of acquiring, discontent with what they have and dissatisfaction with themselves result from it. 

“This causes the changes in their fortunes—for as some men desire to have more, while others fear to lose what they have, enmities and war are the consequences. And this brings about the ruin of one province and the elevation of another.”

Author Walter Scheidel, Dickason Professor in the Humanities, Professor of Classics and History at Stanford University, has also given this subject a great deal of thought. And, like Machiavelli, he has reached some highly disturbing conclusions.

Walter Scheidel - Annual Meeting of the New Champions 2012.jpg

Walter Scheidel

World Economic Forum [CC BY-SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0)%5D

Scheidel gave voice to these in his 2017 book, The Great Leveler: Violence and the History of Inequality from the Stone Age to the Twenty-First Century. His thesis: Only violence and catastrophes have consistently reduced inequality throughout history

According to the book’s jacket blurb: “Are mass violence and catastrophes the only forces that can seriously decrease economic inequality? To judge by thousands of years of history, the answer is yes.

“Tracing the global history of inequality from the Stone Age to today, Walter Scheidel shows that inequality never dies peacefully. Inequality declines when carnage and disaster strike and increases when peace and stability return.

Related image

“The Great Leveler is the first book to chart the crucial role of violent shocks in reducing inequality over the full sweep of human history around the world.

“Ever since humans began to farm, herd livestock, and pass on their assets to future generations, economic inequality has been a defining feature of civilization. Over thousands of years, only violent events have significantly lessened inequality.

“The ‘Four Horsemen’ of leveling—mass-mobilization warfare, transformative revolutions, state collapse, and catastrophic plagues—have repeatedly destroyed the fortunes of the rich….

“Today, the violence that reduced inequality in the past seems to have diminished, and that is a good thing. But it casts serious doubt on the prospects for a more equal future.”

Revolutionaries have known the truth of Scheidel’s findings from the gladiators’ revolt of Spartacus (73 – 71 B.C.) to the French Revolution (1789 – 1799) to the overthrow of the Czarist Romanov dynasty (1917).

But American politicians serenely ignore that truth. They depend on the mega-rich for millions of dollars in “campaign contributions”—which pay for self-glorifying ads on TV.

Thus, in 2016, American voters had a “choice” between two “love-the-rich” Presidential candidates: Donald Trump and Hillary Clinton. The result was that millions stayed home or voted in protest for third-party candidates who had no chance of winning.

In his 1975 book, The Corrupt Society: From Ancient Greece to Modern-day America, British historian Robert Payne warned that the predatory rich would not change their behavior: “Nor is there any likelihood that the rich will plow back their money into services to ensure the general good.

“They have rarely demonstrated social responsibility, and they are much more likely to hold on to their wealth at all costs than to renounce any part of it.

“Like the tyrant who lives in a world wholly remote from the world of the people, shielded and protected from all possible influences, the rich are usually the last to observe the social pressures rising from below, and when these social pressures reach flashpoint, it is too late to call in the police or the army.

“The tyrant dies; the police and the army go over to the revolutionaries; and the new government dispossesses the rich by decree. A single authoritative sentence suffices to expunge all private wealth and restore it to the service of the nation.”

For millions of struggling, impoverished Americans, that day cannot come soon enough.

THE CORRUPTIONS OF THE RICH: PART ONE (OF TWO)

In Bureaucracy, Business, History, Law, Politics, Social commentary on December 20, 2021 at 12:19 am

Americans are used to Presidential candidates telling lies (euphemistically known as “campaign promises”) to get elected.

But when a candidate actually (and usually accidentally) tells the truth, the results can be electrifying. 

On June 18, 2019, Democratic Presidential candidate (and momentary front-runner) Joseph Biden addressed a roomful of donors in New York. 

The former Vice President believed that his message would comfort his well-heeled audience of billionaires: Don’t worry, if I’m elected, your standard of living won’t change.

Addressing the 100 or so guests at a fundraiser at the Carlyle Hotel in New York City, Biden said that he had taken heat from “some of the people on my team, on the Democratic side” because he had said that rich people were “just as patriotic as poor people.

Joe Biden presidential portrait.jpg

Joe Biden

“The truth of the matter is, you all, you all know, you all know in your gut what has to be done. We can disagree in the margins but the truth of the matter is it’s all within our wheelhouse and nobody has to be punished. No one’s standard of living will change, nothing would fundamentally change,” he said. 

And he added: “I mean, we may not want to demonize anybody who has made money.

Related image

“When we have income inequality as large as we have in the United States today, it brews and ferments political discord and basic revolution. Not a joke. Not a joke … It allows demagogues to step in and say the reason where we are is because of the ‘other’….

“You’re not the other. I need you very badly. I hope if I win this nomination, I won’t let you down. I promise you. I have a bad reputation, I always say what I mean. The problem is I sometimes say all that I mean.”

Biden has talked about decreasing income inequality and promoting workers’ rights. But he’s taken a moderate stance when it comes to taxation.

United States Senator Bernie Sanders (D-VT), on the other hand, has attacked the ultra-rich as responsible for the ever-widening gap between themselves and the poor.

“I love Bernie, but I’m not Bernie Sanders. I don’t think 500 billionaires are the reason why we’re in trouble,” Biden said in March, 2019.

Instead, he proposes expanding tax credits for the poor and middle class, and making the tax code less friendly to rich investors. 

Robert Payne, the distinguished British historian, took a different—and darker—view of the rich.

Payne authored more than 110 books. Among his subjects were Adolf Hitler, Ivan the Terrible, Winston Churchill, Joseph Stalin, Vladimir Lenin, William Shakespeare and Leon Trotsky.

In 1975, he published The Corrupt Society: From Ancient Greece to Present-Day America. It proved a summary of many of his previous works.Related image

Among the epochs it covered: The civilizations of ancient Greece, Rome and China; Nazi Germany; the Soviet Union; and Watergate-era America. And the massive corruption each of those epochs had spawned.

Amazon.com: Robert Payne: Books, Biography, Blog, Audiobooks, Kindle

Robert Payne

In his chapter, “A View of the Uncorrupted Society,” Payne warned: Power and wealth are the main sources of corruption.

“The rich, simply by being rich, are infected with corruption. Their overwhelming desire is to grow richer, but they can do this only at the expense of those who are poorer than themselves.

”Their interests conflict with those of the overall society. They live sheltered from the constant anxieties of the poor, and thus cannot understand them.  Nor do they try to.

They see the poor as alien from themselves, and thus come to fear and despise them. And their wealth and influence enables them to buy politicians—who, in turn, write legislation that protects the rich from the poor.

But Payne foresaw an even greater danger from the rich and powerful than their mere isolation from the rest of society: “The mere presence of the rich is corrupting. Their habits, their moral codes, their delight in conspicuous consumption are permanent affronts to the rest of humanity. Vast inequalities of wealth are intolerable in any decent society.”

Writing in 1975, Payne noted that a third of the private wealth was possessed by less than five percent of the population—while about a fifth of the populace lived at the poverty level. By 2000, he predicted, about five percent of the population would possess two-thirds of America’s wealth. And more than half the population would be near or below the starvation level. 

The result could only be catastrophe. The only way to halt this this increasing concentration of wealth by fewer people would be through law or violent revolution.

Payne has proven to be an uncanny prophet.

On December 8, 2017, the Seattle Times noted that the wealthiest one percent of Americans owned 40% of the country’s wealth. They owned more wealth than the bottom 90% combined. 

From 2013, the share of wealth owned by the one percent increased by nearly three percentage points. Wealth owned by the bottom 90%, meanwhile, fell over the same period.

But this situation need not remain permanent.

THE RICH–AND THEIR EVILS–ARE WITH YOU ALWAYS

In Bureaucracy, Business, History, Law, Law Enforcement, Politics, Social commentary on May 14, 2021 at 12:55 am

In November, 2017, President Donald Trump and a Republican-dominated House and Senate rammed the Tax Cuts and Jobs Act of 2017 through Congress. It became law on December 22, 2017.  

The law: 

  • Ignored the stagnation of working-class wages and exacerbated inequality;
  • Weakened revenues when the nation needed to raise more;
  • Encouraged rampant tax avoidance and gaming that will undermine the integrity of the tax code;
  • Left behind low- and moderate-income Americans—and in many ways hurt them.

For American corporations, however, the law was a godsend: 

  • Cutting the corporate tax rate from 35 to 21 percent;
  • Shifting toward a territorial tax system, where multinational corporations’ foreign profits go largely untaxed;
  • Benefitting overwhelmingly wealthy shareholders and highly paid executives.

In 1513, Niccolo Machiavelli, the Florentine statesman who has been called the father of modern political science, published his best-known work: The Prince.

Related image

Niccolo Machiavelli

Among the issues he confronted was how to preserve liberty within a republic. And key to this was mediating the eternal struggle between the wealthy and the poor and middle class.

Machiavelli deeply distrusted the nobility because they stood above the law. He saw them as a major source of corruption because they could buy influence through patronage, favors or nepotism.

Successful political leaders must attain the support of the nobility or general populace. But since these groups have conflicting interests, the safest course is to choose the latter.  

Writes Machiavelli:

….He who becomes prince by help of the [wealthy] has greater difficulty in maintaining his power than he who is raised by the populace. He is surrounded by those who think themselves his equals, and is thus unable to direct or command as he pleases. 

But one who is raised to leadership by popular favor finds himself alone, and has no one, or very  ew, who   are not  ready  to  obey him. [And] it is impossible to satisfy the [wealthy] by fair dealing and without inflicting injury upon others, whereas it is very easy to satisfy the mass of the people in this way. 

Machiavelli warns that the general populace is more honest than the nobility–i-.e., wealthy. The wealthy seek to oppress, while the populace wants to simply avoid oppression.

A political leader cannot protect himself against a hostile population, owing to their numbers, but he can against the hostility of the great, as they are but few.

The worst that a prince has to expect from a hostile people is to be abandoned, but from hostile nobles he has to fear not only desertion but their active opposition. And as they are more far seeing and more cunning, they are always in time to save themselves and take sides with the one who they expect will conquer. 

One…who becomes prince by favor of the populace, must maintain its friendship, which he will find easy, the people asking nothing but not to be oppressed. 

But one who against the people’s wishes becomes prince by favor of the nobles, should above all endeavor to gain the favor of the people.  This will be easy for him if he protects them.  

In 2020, Tax Justice Network, which campaigns to abolish tax havens, commissioned a study of their effect on the world’s economy.

The study was entitled, “The State of Tax Justice 2020.” 

May be an image of 6 people and text that says 'SO YOU WANT THE GOVERNMENT TO "STOP GIVING POOR PEOPLE FREE STUFF"? FUNNY HOW YOU DON'T CARE ABOUT THE $70 BILLION A YEAR WE SPEND ON SUBSIDIZING WALL ST BANKS, THE $38 BILLION IN SUBSIDIES GIVEN TO OIL COMPANIES, THE $2.1 TRILLION THAT FORTUNE 500 CORPORATIONS ARE STASHING ABROAD TO AVOID PAYING U.S. TAXES, AND THE $153 BILLION A YEAR WE SPEND TO SUBSIDIZE MCDONALD'S & WALMART'S OW-WAGE WORKERS? OCCUPY DEMOCRATS'

The research was carried out by James Henry, former chief economist at consultants McKinsey & Co.  Among its findings: 

  • Countries lose over $427 billion in tax each year to international corporate tax abuse and private tax evasion.
  • More tax is lost to tax havens ever year due to corporate tax abuse by multinational corporations than by individuals.
  • Multinational corporations short-change countries out of $245 billion in tax every year.
  • People who move their wealth offshore short-change their governments out of $182 billion in taxes every year.
  • Almost all responsibility for global tax losses falls on higher income countries.
  • Higher income countries were responsible for 98 per cent of all the tax loss countries around the world lost.

The report recommended: 

  • Governments should introduce an excess profit tax on large multinational corporations which have profited during the pandemic while local businesses were forced into lockdown.
  • Digital tech giants claim to have our best interests at heart but have been short-changing us out of billions in tax for years.
  • Governments should introduce a wealth tax to reign in the billions in tax lost to tax havens every year.
  • Establish a UN tax convention that makes sure robust international tax standards are set in a transparent and democratic way.

Fortunately, Machiavelli has supplied timeless remedies to this increasingly dangerous situation:

  • Assume evil among men—and most especially among those who possess the greatest concentration of wealth and power.
  • Carefully monitor their activities—the way the FBI now regularly monitors those of the Mafia and major terrorist groups.
  • This means using bugs, wiretaps and informants—and, above all, assuming that powerful men dedicated to their own greed will inevitably become criminals.
  • Ruthlessly prosecute the treasonous crimes of the rich and powerful—and, upon their conviction, impose severe punishment.

THE RICH (LIKE THE PLAGUE) ARE WITH YOU ALWAYS: PART TWO (END)

In Bureaucracy, Business, History, Law, Politics, Social commentary on February 21, 2020 at 12:07 am

The gap between rich and poor in the United States has never been greater.

A May 1, 2018 article in Forbes—which bills itself as “The Capitalist Tool”—vividly documents this truth.

“In the 1950s, a typical CEO made 20 times the salary of his or her average worker. Last year, [2017] CEO pay at an S&P 500 Index firm soared to an average of 361 times more than the average rank-and-file worker, or pay of $13,940,000 a year, according to an AFL-CIO’s Executive Paywatch news release today.”

The average CEO pay climbed six percent in 2017—while the average production worker earned just $38,613, according to Executive Paywatch.

The average wage—adjusted for inflation—has stagnated for more than 50 years. Meanwhile, CEOs’ average pay since the 1950s has risen by 1000%.

This would not have been news to Niccolo Machiavelli, the father of modern political science. In his masterwork, The Discourses, he observed the human condition as that of constant struggle: 

Portrait of Niccolò Machiavelli by Santi di Tito.jpg

Niccolo Machiavelli

“It was a saying of ancient writers, that men afflict themselves in evil, and become weary of the good, and that both these dispositions produce the same effects. 

“For when men are no longer obliged to fight from necessity, they fight from ambition, which passion is so powerful in the hearts of men that it never leaves them, no matter to what height they may rise.    

“The reason for this is that nature has created men so that they desire everything, but are unable to attain it. Desire being thus always greater than the faculty of acquiring, discontent with what they have and dissatisfaction with themselves result from it. 

“This causes the changes in their fortunes—for as some men desire to have more, while others fear to lose what they have, enmities and war are the consequences. And this brings about the ruin of one province and the elevation of another.”

Author Walter Scheidel, Dickason Professor in the Humanities, Professor of Classics and History at Stanford University, has also given this subject a great deal of thought. And, like Machiavelli, he has reached some highly disturbing conclusions.

Walter Scheidel - Annual Meeting of the New Champions 2012.jpg

Walter Scheidel

World Economic Forum [CC BY-SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0)%5D

Scheidel gave voice to these in his 2017 book, The Great Leveler: Violence and the History of Inequality from the Stone Age to the Twenty-First Century. His thesis: Only violence and catastrophes have consistently reduced inequality throughout history

According to the book’s jacket blurb: “Are mass violence and catastrophes the only forces that can seriously decrease economic inequality? To judge by thousands of years of history, the answer is yes.

“Tracing the global history of inequality from the Stone Age to today, Walter Scheidel shows that inequality never dies peacefully. Inequality declines when carnage and disaster strike and increases when peace and stability return.

Related image

“The Great Leveler is the first book to chart the crucial role of violent shocks in reducing inequality over the full sweep of human history around the world.

“Ever since humans began to farm, herd livestock, and pass on their assets to future generations, economic inequality has been a defining feature of civilization. Over thousands of years, only violent events have significantly lessened inequality.

“The ‘Four Horsemen’ of leveling—mass-mobilization warfare, transformative revolutions, state collapse, and catastrophic plagues—have repeatedly destroyed the fortunes of the rich….

“Today, the violence that reduced inequality in the past seems to have diminished, and that is a good thing. But it casts serious doubt on the prospects for a more equal future.”

Revolutionaries have known the truth of Scheidel’s findings from the gladiators’ revolt of Spartacus (73 – 71 B.C.) to the French Revolution (1789 – 1799) to the overthrow of the Czarist Romanov dynasty (1917).

But American politicians serenely ignore that truth. They depend on the mega-rich for millions of dollars in “campaign contributions”—which pay for self-glorifying ads on TV.

Thus, in 2016, American voters had a “choice” between two “love-the-rich” Presidential candidates: Donald Trump and Hillary Clinton. The result was that millions stayed home or voted in protest for third-party candidates who had no chance of winning.

In his 1975 book, The Corrupt Society: From Ancient Greece to Modern-day America, British historian Robert Payne warned that the predatory rich would not change their behavior: “Nor is there any likelihood that the rich will plow back their money into services to ensure the general good.

“They have rarely demonstrated social responsibility, and they are much more likely to hold on to their wealth at all costs than to renounce any part of it.

“Like the tyrant who lives in a world wholly remote from the world of the people, shielded and protected from all possible influences, the rich are usually the last to observe the social pressures rising from below, and when these social pressures reach flashpoint, it is too late to call in the police or the army.

“The tyrant dies; the police and the army go over to the revolutionaries; and the new government dispossesses the rich by decree. A single authoritative sentence suffices to expunge all private wealth and restore it to the service of the nation.”

For millions of struggling, impoverished Americans, that day cannot come soon enough.

THE RICH (LIKE THE PLAGUE) ARE WITH YOU ALWAYS: PART ONE (OF TWO)

In Bureaucracy, Business, History, Politics, Social commentary on February 20, 2020 at 12:10 am

Americans are used to Presidential candidates telling lies (euphemistically known as “campaign promises”) to get elected.

But when a candidate actually (and usually accidentally) tells the truth, the results can be electrifying. 

On June 18, 2019, Democratic Presidential candidate (and momentary front-runner) Joseph Biden addressed a roomful of donors in New York. 

The former Vice President believed that his message would comfort his well-heeled audience of billionaires: Don’t worry, if I’m elected, your standard of living won’t change.

Addressing the 100 or so guests at a fundraiser at the Carlyle Hotel in New York City, Biden said that he had taken heat from “some of the people on my team, on the Democratic side” because he had said that rich people were “just as patriotic as poor people.

Joe Biden presidential portrait.jpg

Joe Biden

“The truth of the matter is, you all, you all know, you all know in your gut what has to be done. We can disagree in the margins but the truth of the matter is it’s all within our wheelhouse and nobody has to be punished. No one’s standard of living will change, nothing would fundamentally change,” he said. 

And he added: “I mean, we may not want to demonize anybody who has made money.

Related image

“When we have income inequality as large as we have in the United States today, it brews and ferments political discord and basic revolution. Not a joke. Not a joke … It allows demagogues to step in and say the reason where we are is because of the ‘other’….

“You’re not the other. I need you very badly. I hope if I win this nomination, I won’t let you down. I promise you. I have a bad reputation, I always say what I mean. The problem is I sometimes say all that I mean.”

Biden has talked about decreasing income inequality and promoting workers’ rights. But he’s taken a moderate stance when it comes to taxation.

United States Senator Bernie Sanders (D-VT), on the other hand, has attacked the ultra-rich as responsible for the ever-widening gap between themselves and the poor.

“I love Bernie, but I’m not Bernie Sanders. I don’t think 500 billionaires are the reason why we’re in trouble,” Biden said in March, 2019.

Instead, he proposes expanding tax credits for the poor and middle class, and making the tax code less friendly to rich investors. 

Robert Payne, the distinguished British historian, took a different—and darker—view of the rich.

Payne authored more than 110 books. Among his subjects were Adolf Hitler, Ivan the Terrible, Winston Churchill, Joseph Stalin, Vladimir Lenin, William Shakespeare and Leon Trotsky.

In 1975, he published The Corrupt Society: From Ancient Greece to Present-Day America. It proved a summary of many of his previous works.

Related image

Among the epochs it covered: The civilizations of ancient Greece, Rome and China; Nazi Germany; the Soviet Union; and Watergate-era America. And the massive corruption each of those epochs had spawned.

In his chapter, “A View of the Uncorrupted Society,” Payne warned: Power and wealth are the main sources of corruption.

“The rich, simply by being rich, are infected with corruption. Their overwhelming desire is to grow richer, but they can do this only at the expense of those who are poorer than themselves.

”Their interests conflict with those of the overall society. They live sheltered from the constant anxieties of the poor, and thus cannot understand them.  Nor do they try to.

They see the poor as alien from themselves, and thus come to fear and despise them. And their wealth and influence enables them to buy politicians—who, in turn, write legislation that protects the rich from the poor.

But Payne foresaw an even greater danger from the rich and powerful than their mere isolation from the rest of society: “The mere presence of the rich is corrupting. Their habits, their moral codes, their delight in conspicuous consumption are permanent affronts to the rest of humanity. Vast inequalities of wealth are intolerable in any decent society.”

Writing in 1975, Payne noted that a third of the private wealth was possessed by less than five percent of the population—while about a fifth of the populace lived at the poverty level. By 2000, he predicted, about five percent of the population would possess two-thirds of America’s wealth. And more than half the population would be near or below the starvation level. 

The result could only be catastrophe. The only way to halt this this increasing concentration of wealth by fewer people would be through law or violent revolution.

Payne has proven to be an uncanny prophet.

On December 8, 2017, the Seattle Times noted that the wealthiest one percent of Americans owned 40% of the country’s wealth. They owned more wealth than the bottom 90% combined. 

From 2013, the share of wealth owned by the one percent increased by nearly three percentage points. Wealth owned by the bottom 90%, meanwhile, fell over the same period.

But this situation need not remain permanent.

LOVE THE RICH, IGNORE THE REST: PART TWO (END)

In Bureaucracy, Business, History, Law, Politics, Social commentary on June 25, 2019 at 12:15 am

The gap between rich and poor in the United States has never been greater.

A May 1, 2018 article in Forbes—which bills itself as “The Capitalist Tool”—vividly documents this truth.

“In the 1950s, a typical CEO made 20 times the salary of his or her average worker. Last year, [2017] CEO pay at an S&P 500 Index firm soared to an average of 361 times more than the average rank-and-file worker, or pay of $13,940,000 a year, according to an AFL-CIO’s Executive Paywatch news release today.”

The average CEO pay climbed six percent in 2017—while the average production worker earned just $38,613, according to Executive Paywatch.

The average wage—adjusted for inflation—has stagnated for more than 50 years. Meanwhile, CEOs’ average pay since the 1950s has risen by 1000%.

This would not have been news to Niccolo Machiavelli, the father of modern political science. In his masterwork, The Discourses, he observed the human condition as that of constant struggle: 

Portrait of Niccolò Machiavelli by Santi di Tito.jpg

Niccolo Machiavelli

It was a saying of ancient writers, that men afflict themselves in evil, and become weary of the good, and that both these dispositions produce the same effects. 

For when men are no longer obliged to fight from necessity, they fight from ambition, which passion is so powerful in the hearts of men that it never leaves them, no matter to what height they may rise.    

The reason for this is that nature has created men so that they desire everything, but are unable to attain it. Desire being thus always greater than the faculty of acquiring, discontent with what they have and dissatisfaction with themselves result from it. 

This causes the changes in their fortunes—for as some men desire to have more, while others fear to lose what they have, enmities and war are the consequences. And this brings about the ruin of one province and the elevation of another.

Author Walter Scheidel, Dickason Professor in the Humanities, Professor of Classics and History at Stanford University, has also given this subject a great deal of thought. And, like Machiavelli, he has reached some highly disturbing conclusions.

Walter Scheidel - Annual Meeting of the New Champions 2012.jpg

Walter Scheidel

World Economic Forum [CC BY-SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0)%5D

He gave voice to these in his 2017 book, The Great Leveler: Violence and the History of Inequality from the Stone Age to the Twenty-First Century. His thesis: Only violence and catastrophes have consistently reduced inequality throughout history

According to the book’s jacket blurb: “Are mass violence and catastrophes the only forces that can seriously decrease economic inequality? To judge by thousands of years of history, the answer is yes.

“Tracing the global history of inequality from the Stone Age to today, Walter Scheidel shows that inequality never dies peacefully. Inequality declines when carnage and disaster strike and increases when peace and stability return.

Related image

 

“The Great Leveler is the first book to chart the crucial role of violent shocks in reducing inequality over the full sweep of human history around the world.

“Ever since humans began to farm, herd livestock, and pass on their assets to future generations, economic inequality has been a defining feature of civilization. Over thousands of years, only violent events have significantly lessened inequality.

“The ‘Four Horsemen’ of leveling–mass-mobilization warfare, transformative revolutions, state collapse, and catastrophic plagues—have repeatedly destroyed the fortunes of the rich.

“Scheidel identifies and examines these processes, from the crises of the earliest civilizations to the cataclysmic world wars and communist revolutions of the twentieth century.

“Today, the violence that reduced inequality in the past seems to have diminished, and that is a good thing. But it casts serious doubt on the prospects for a more equal future.”

Revolutionaries have known the truth of Scheidel’s findings from the gladiators’ revolt of Spartacus (73-71 B.C.) to the French Revolution (1789 – 1799) to the overthrow of the Czarist Romanov dynasty (1917).

But American politicians serenely ignore that truth. They depend on the mega-rich for millions of dollars in “campaign contributions”—which pay for self-glorifying ads on TV.

Thus, in 2016, American voters had a “choice” between two “love-the-rich” Presidential candidates: Donald Trump and Hillary Clinton. The result was that millions stayed home or voted in protest for third-party candidates who had no chance of winning.

In his 1975 book, The Corrupt Society: From Ancient Greece to Modern-day America, British historian Robert Payne warned that the predatory rich would not change their behavior: “Nor is there any likelihood that the rich will plow back their money into services to ensure the general good.

“They have rarely demonstrated social responsibility, and they are much more likely to hold on to their wealth at all costs than to renounce any part of it.

“Like the tyrant who lives in a world wholly remote from the world of the people, shielded and protected from all possible influences, the rich are usually the last to observe the social pressures rising from below, and when these social pressures reach flashpoint, it is too late to call in the police or the army.

“The tyrant dies; the police and the army go over to the revolutionaries; and the new government dispossesses the rich by decree. A single authoritative sentence suffices to expunge all private wealth and restore it to the service of the nation.”

LOVE THE RICH, IGNORE THE REST: PART ONE (OF TWO)

In Bureaucracy, Business, History, Law, Politics, Social commentary on June 24, 2019 at 1:21 am

Americans are used to Presidential candidates telling lies (euphemistically known as “campaign promises”) to get elected.

But when a candidate actually (and usually accidentally) tells the truth, the results can be electrifying. A pointed example:

On June 18, Democratic Presidential candidate (and momentary front-runner) Joe Biden addressed a roomful of donors in New York. Money is, after all, the lifeblood of all political campaigns, and Biden wanted to guarantee he got more of it than any of his 23 Democratic rivals.

So the former vice president had a message he felt sure would appeal to his well-heeled audience of billionaires: Don’t worry, if I’m elected, your standard of living won’t change.

Addressing the 100 or so guests at a fundraiser at the Carlyle Hotel in New York City, Biden said that he had taken heat from “some of the people on my team, on the Democratic side” because he had said that rich people were “just as patriotic as poor people.

Joe Biden presidential portrait.jpg

Joe Biden

“The truth of the matter is, you all, you all know, you all know in your gut what has to be done. We can disagree in the margins but the truth of the matter is it’s all within our wheelhouse and nobody has to be punished. No one’s standard of living will change, nothing would fundamentally change,” he said. 

And he added: “I mean, we may not want to demonize anybody who has made money.

Related image

“When we have income inequality as large as we have in the United States today, it brews and ferments political discord and basic revolution. Not a joke. Not a joke … It allows demagogues to step in and say the reason where we are is because of the ‘other’….

“You’re not the other. I need you very badly. I hope if I win this nomination, I won’t let you down. I promise you. I have a bad reputation, I always say what I mean. The problem is I sometimes say all that I mean.”

Biden has talked about decreasing income inequality and promoting workers’ rights. But he’s taken a moderate stance when it comes to taxation.

Vermont United States Senator Bernie Sanders, on the other hand, has attacked the ultra-rich as responsible for the ever-widening gap between themselves and the poor.

“I love Bernie, but I’m not Bernie Sanders. I don’t think 500 billionaires are the reason why we’re in trouble,” Biden said in March.

Instead, he proposes expanding tax credits for the poor and middle class, and making the tax code less friendly to rich investors. 

Robert Payne, the distinguished British historian, had a different—and darker—view of the rich.

Payne authored more than 110 books. Among his subjects were Adolf Hitler, Ivan the Terrible, Winston Churchill, Joseph Stalin, Vladimir Lenin, William Shakespeare and Leon Trotsky.

In 1975, he published The Corrupt Society: From Ancient Greece to Present-Day America. It proved a summary of many of his previous works.

Related image

Among the epochs it covered were the civilizations of ancient Greece, Rome and China; Nazi Germany; the Soviet Union; and Watergate-era America. And the massive corruption each of those epochs had spawned.

In his chapter, “A View of the Uncorrupted Society,” Payne warned: Power and wealth are the main sources of corruption.

“The rich, simply by being rich, are infected with corruption. Their overwhelming desire is to grow richer, but they can do this only at the expense of those who are poorer than themselves.

”Their interests conflict with those of the overall society. They live sheltered from the constant anxieties of the poor, and thus cannot understand them.  Nor do they try to.

They see the poor as alien from themselves, and thus come to fear and despise them. And their wealth and influence enables them to buy politicians—who, in turn, write legislation that protects the rich from the poor.

But Payne foresaw an even greater danger from the rich and powerful than their mere isolation from the rest of society: “The mere presence of the rich is corrupting. Their habits, their moral codes, their delight in conspicuous consumption are permanent affronts to the rest of humanity. Vast inequalities of wealth are intolerable in any decent society.”

Writing in 1975, Payne noted that a third of the private wealth was possessed by less than five percent of the population—while about a fifth of the populace lived at the poverty level. By 2000, he predicted, about five percent of the population would possess two-thirds of America’s wealth. And more than half the population would be near or below the starvation level. 

The result could only be catastrophe. The only way to halt this this increasing concentration of wealth by fewer people would be through law or violent revolution.

Payne has proven to be an uncanny prophet.

On December 8, 2017, the Seattle Times noted that the wealthiest one percent of Americans owned 40% of the country’s wealth.  They owned more wealth than the bottom 90% combined. 

From 2013, the share of wealth owned by the one percent increased by nearly three percentage points. Wealth owned by the bottom 90%, meanwhile, fell over the same period.

But this situation need not remain permanent.

%d bloggers like this: