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Posts Tagged ‘INCOME INEQUALITY’

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.

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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.

FOR REPUBLICANS: A WARNING ABOUT CLASS WARFARE

In Bureaucracy, Business, History, Military, Politics, Social commentary on April 26, 2018 at 12:07 am

A 2012 book offers timely advice for Republicans who believe that serving the interests of the wealthiest 1% will maintain their party in power.

It’s Confront and Conceal: Obama’s Secret Wars and Surprising use of American Power, by David E. Sanger, the chief Washington correspondent for The New York Times.

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Divided into five sections, it dramatically covers the following subjects:

Afghanistan and Pakistan – How Obama sought to disengage from the former while readying plans to occupy the latter should its growing nuclear arsenal pose a threat to America.

Iran – To prevent the Iranians from building nuclear weapons, Obama authorized a malevolent virus to be inserted into that nation’s computer system.

Drones and Cyber – American drone attacks have wiped out much of Al Qaeda’s leadership—but increasingly strained U.S. relations with Pakistan.  And while America has launched cyber attacks on Iran, it remains vulnerable to similar attacks—especially by China.

Arab Spring – America was totally surprised by the popular revolts sweeping the Arab world.  And Obama had to balance  showing support for the revolutionaries against jeopardizing America’s longtime Arab—and dictatorial—allies.

China and North Korea – The United States found itself financially strained to meet its worldwide military commitments.  This forced Obama to use a both persuasion and containment against both these potential adversaries.

And in its section on the Arab Spring, there is an unintended warning to Republicans and their Right-wing followers.

David E. Sanger 2011 05.jpg

 

David Sanger (Copyright, Creative Commons)

Sanger analyzes why the vast majority of Egyptians felt no solidarity with Hosni Mubarak, the general/dictator who ruled Egypt from 1981 ti 2911. 

Mubarak came to power after Islamic fundamentalists assassinated President Anwar Sadat during a military review. They believed that Sadat had committed the unpardonable crime of signing a peace treaty with Israel.

Mubarack often warned Washington that only he could prevent Egypt from being dominated by fundamentalist, anti-American groups such as the Muslim Brotherhood.

But, writes Sanger, he achieved the very opposite:

“By leaving his citizens without a social safety net, by failing to invest in the country’s crumbling infastructure…he paved the way for the Brotherhood’s success….

“In a land where the state delivers so little, even the smallest [medical] clinic” as provided by the Brotherhood “will win respect and loyalty.

“So when it came time to vote, most Egyptians decided to cast their ballots for candidates they knew could provide something—Islamist or not, it almost didn’t matter….”

Image result for Images of Hosni Mubarak

Hosni Mubarak (Copyright, Presidenza della Repubblica)

One such Brotherhood supporter, who grew up in the poor, agricultural region of Beni Suef, was quoted as saying:

“The Muslim Brotherhood came into my village, and brought lorries of fruits and vegetables,” selling them at discounted prices.  “They supported medical clinics”–and thus won the hearts of the people they served.

Fast forward to Mitt Romney, the 2012 Republican Presidential nominee, and his vision for America.

As Romney saw it, questions about Wall Street scandals and income inequality were driven only by “envy.”

On January 11, 2012, after winning the New Hampshire primary, Romney appeared on NBC’s “The Today Show.”  Host Matt Lauer noted that many Americans were concerned “about the distribution of wealth and power in this country.”

“I think it’s about envy,” replied Romney, whose own fortune has been conservatively estimated at $250 million. “I think it’s about class warfare.

“I think when you have a president encouraging the idea of dividing America based on 99 percent versus one percent… you’ve opened up a whole new wave of approach in this country which is entirely inconsistent with the concept of ‘one nation under God.’”

Romney added that it wasn’t necessary to have a public debate about the inequality of wealth distribution in this country.

“I think it’s fine to talk about those things in quiet rooms and discussions about tax policy and the like,” Romney said. “But the President has made this part of his campaign rally.

“Everywhere he goes we hear him talking about millionaires and billionaires and executives and Wall Street. It’s a very envy-oriented, attack-oriented approach and I think it’ll fail.”

Romney did not mention that, in 2007, the richest 1% of the American populace—of which he is a member—owned 34.6% of the country’s total wealth, and the next 19% owned 50.5%.

Thus, the top 20% of Americans owned 85% of the country’s wealth and the bottom 80% of the population owned 15%.

Romney claimed that Obama’s focus on this issue was just “part of his campaign rally.”

Clearly, now-ousted rulers like Mubarak and Muammar Quaddaffi believed “it’s fine to talk about these things” like vast differences in wealth “in quiet rooms.”  That is, so long as they and their 1% rich supporters were doing the talking.

But over time their remoteness from the vast majority of their impoverished fellow citizens sealed their doom.  When enough people broke into open revolt, even the military decided to change sides.

Mubarack was forced to resign, and Quaddaffi—after waging war against his own people—was captured and murdered.

If Romney’s—and now Donald Trump’s—vision of “everything for the 1%” is allowed to prevail, they and their ultra-privileged supporters may truly learn the lessons of class warfare.  

MACHIAVELLI WAS RIGHT: DISTRUST THE RICH

In Business, History, Law, Law Enforcement, Politics, Social commentary on April 26, 2017 at 12:05 am

As President Donald Trump prepares to drastically cut taxes on the wealthy (including himself) it’s well to remember the man whose name defines modern politics.

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

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.

The results of this wholesale favoring of the wealthy and powerful have been brilliantly documented in a recent investigation of tax evasion by the world’s rich.

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.

HOW TO DESTROY–AND CREATE–JOBS: PART THREE (END)

In Bureaucracy, History, Law, Politics, Social commentary on April 24, 2015 at 12:15 am

If passed by Congress and vigorously enforced by the U.S. Departments of Justice and Labor, an Employers Responsibility Act would ensure full-time, permanent and productive employment for millions of capable, job-seeking Americans.

Among its remaining provisions:

(10)   CEOs whose companies employ illegal aliens would be held directly accountable for the actions of their subordinates.  Upon conviction, the CEO would be sentenced to a mandatory prison term of at least ten years.

This would prove a more effective remedy for controlling illegal immigration than stationing tens of thousands of soldiers on the U.S./ Mexican border.

With CEOs forced to account for their subordinates’ actions, they would take drastic steps to ensure their companies complied with Federal immigration laws.

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(11)  The seeking of “economic incentives” by companies in return for moving to or remaining in cities/states would be strictly forbidden.

Such “economic incentives” usually:

  1. allow employers to ignore existing laws protecting employees from unsafe working conditions;
  2. allow employers to ignore existing laws protecting the environment;
  3. allow employers to pay their employees the lowest acceptable wages, in return for the “privilege” of working at these companies; and/or
  4. allow employers to pay little or no business taxes, at the expense of communities who are required to make up for lost tax revenues.

(12) Employers who continue to make such overtures would be prosecuted for attempted bribery or extortion:

  1. Bribery, if they offered to move to a city/state in return for “economic incentives,” or
  2. Extortion, if they threatened to move their companies from a city/state if they did not receive such “economic incentives.”

This would protect employees against artificially-depressed wages and unsafe working conditions; protect the environment in which these employees live; and protect cities/states from being pitted against one another at the expense of their economic prosperity.

(12)   The U.S. Departments of Justice and Labor would regularly monitor the extent of employer compliance with the provisions of this Act.  

Among these measures: Sending  undercover  agents, posing as highly-qualified job-seekers, to apply at companies—and then vigorously prosecuting those employers who  blatantly refused to hire despite their proven economic ability to do so.

This would be comparable to the long-time and legally-validated practice of using undercover agents to determine compliance with fair-housing laws.

(13)   The Justice Department and/or the Labor Department would be required to maintain a publicly-accessible database on those companies that had been cited, sued and/or convicted for such offenses as

  • discrimination,
  • harassment,
  • health and/or safety violations or
  • violating immigration laws. 

Employers would be legally required to regularly provide such information to these agencies, so that it would remain accurate and up-to-date.

Such information would arm job applicants with vital information about the employers they were approaching.  They could thus decide in advance if an employer is deserving of their skills and dedication.

As matters now stand, employers can legally demand to learn even the most private details of an applicant’s life without having to disclose even the most basic information about themselves and their history of treating employees.

* * * * *

Reform starts with facing the truth–however painful–for what it is.  And with seeing one’s enemies–however powerful–for what they are.

For thousands of years, otherwise highly intelligent men and women believed that kings ruled by divine right.  That kings held absolute power, levied extortionate taxes and sent countless millions of men off to war–all because God wanted it that way.

That lunacy was dealt a deadly blow in 1776 when American Revolutionaries threw off the despotic rule of King George III of England.

But today, millions of Americans remain imprisoned by an equally outrageous and dangerous theory: The Theory of the Divine Right of Employers.

Summing up this employer-as-God attitude, Calvin Coolidge still speaks for the overwhelming majority of employers and their paid shills in government:

“The man who builds a factory builds a temple, and the man who works there worships there.”

America can no longer afford such a dangerous fallacy as the Theory of the Divine Right of Employers.

The solution lies in remembering that the powerful never voluntarily surrender their privileges.

Americans did not win their freedom from Great Britain–-and its enslaving doctrine of “the Divine Right of Kings”-–by begging for their rights.

And Americans will not win their freedom from their corporate masters–-and the equally enslaving doctrine of “the Divine Right of Employers”–by begging for the right to work and support themselves and their families.

And they will most certainly never win such freedom by supporting right-wing political candidates whose first and only allegiance is to the corporate interests who bankroll their campaigns.

Corporations can–and do–spend millions of dollars on TV ads, selling lies–lies such as the “skills gap,” and how if the wealthy are forced to pay their fair share of taxes, jobs will inevitably disappear.

But Americans can choose to reject those lies–and demand that employers behave like patriots instead of predators.

HOW TO DESTROY–AND CREATE–JOBS: PART TWO (OF THREE)

In Bureaucracy, History, Law, Politics, Social commentary on April 23, 2015 at 12:01 am

An Employers Responsibility Act (ERA) would quickly return millions of willing-to-work Americans to fulltime, permanent employment.

Such legislation would legally require employers to demonstrate as much initiative for hiring as job-seekers are now expected to show in searching for work. 2-28-96 Among the provisions of a nationwide Employers Responsibility Act:

(1) American companies that close plants in the United States and open others abroad would be forbidden to sell products made in those foreign plants within the United States.

This would protect both American and foreign workers from employers seeking to profit at their expense. American workers would be ensured of continued employment. And foreign laborers would be protected against substandard wages and working conditions.

Companies found violating this provision would be subject to Federal criminal prosecution. Guilty verdicts would result in heavy fines and lengthy imprisonment for their owners and top managers.

(2) Large companies (those employing more than 100 persons) would be required to create entry-level training programs for new, future employees.

These would be modeled on programs now existing for public employees, such as firefighters, police officers and members of the armed services.

Such programs would remove the employer excuse, “I’m sorry, but we can’t hire you because you’ve never had any experience in this line of work.”

After all, the Air Force has never rejected an applicant because, “I’m sorry, but you’ve never flown a plane before.”

This Nation has greatly benefited from the humane and professional efforts of the men and women who have graduated from public-sector training programs.

There is no reason for the private sector to shun programs that have succeeded so brilliantly for the public sector.

(3) Employers would receive tax credits for creating professional, well-paying, full-time jobs.

This would encourage the creation of better than the menial, dead-end, low-paying and often part-time jobs which exist in the service industry. Employers found using such tax credits for any other purpose would be prosecuted for tax fraud.

(4) A company that acquired another–through a merger or buyout–would be forbidden to fire en masse the career employees of that acquired company.

This would be comparable to the protection existing for career civil service employees. Such a ban would prevent a return to the predatory “corporate raiding” practices of the 1980s, which left so much human and economic wreckage in their wake.

The wholesale firing of employees would trigger the prosecution of the company’s new owners. Employees could still be fired, but only for provable just cause, and only on a case-by-case basis.

(5) Employers would be required to provide full medical and pension benefits for all employees, regardless of their full-time or part-time status.

Increasingly, employers are replacing full-time workers with part-time ones—solely to avoid paying medical and pension benefits.

Requiring employers to act humanely and responsibly toward all their employees would encourage them to provide full-time positions—and hasten the death of this greed-based practice.

(6) Employers of all part-time workers would be required to comply with all Federal labor laws.

Under current law, part-time employees are not protected against such abuses as discrimination, sexual harassment and unsafe working conditions. Closing this loophole would immediately create two positive results:

  • Untold numbers of currently-exploited workers would be protected from the abuses of predatory employers; and
  • Even predatorily-inclined employers would be encouraged to offer permanent, fulltime jobs rather than only part-time ones—since a major incentive for offering part-time jobs would now be eliminated.

(7) Employers would be encouraged to hire to their widest possible limits, through a combination of financial incentives and legal sanctions.  

Among those incentives: Employers demonstrating a willingness to hire would receive substantial Federal tax credits, based on the number of new, permanent employees hired per year. 

Employers claiming eligibility for such credits would be required to make their financial records available to Federal investigators. Employers found making false claims would be prosecuted for perjury and tax fraud, and face heavy fines and imprisonment if convicted.

(8)  Among those sanctions: Employers refusing to hire could be required, to prove, in court: 

  • Their economic inability to hire further employees, and/or
  • The unfitness of the specific, rejected applicant.

Companies found guilty of unjustifiably refusing to hire would face the same penalties as now applying in cases of discrimination on the basis of age, race, sex and disability.

Employers would thus fund it easier to hire than to refuse to do so. Job-seekers would no longer be prevented from even being considered for employment because of arbitrary and interminable “hiring freezes.”

(9)  Employers refusing to hire would be required to pay an additional “crime tax.”

Sociologists and criminologists agree that “the best cure for crime is a job.” Thus, employers who refuse to hire contribute to a growing crime rate in this Nation.

Such non-hiring employers would be required to pay an additional tax, which would be earmarked for agencies of the criminal justice system at State and Federal levels.

HOW TO DESTROY–AND CREATE–JOBS: PART ONE (OF THREE)

In Bureaucracy, History, Law, Politics, Social commentary on April 22, 2015 at 12:10 am

Republicans, always ready to attack President Barack Obama, have found a new cause for blame:  Obama is responsible for increased inequality.

“Frankly, the president’s policies have made income inequality worse,” House Speaker John Boehner said on CBS’s “60 Minutes” in January.

And he blamed Obamacare for the growing inequality:

“All the regulations that are coming out of Washington make it more difficult for employers to hire more people, chief amongst those, I would argue is Obamacare–which basically puts a penalty or a tax on employers for every new job they create.”

Even Mitt Romney has suddenly discovered that millions of Americans are suffering from income inequality.

Yes, that Mitt Romney–who famously said during his 2012 campaign for President: “Corporations are people, my friend”; “I like being able to fire people”; and “I’m not concerned about the very poor.”

“Under President Obama, the rich have gotten richer, income inequality has gotten worse and there are more people in poverty than ever before,” Romney told a crowd of Republican National Committee members in January.

Mitt Romney speaking on the USS Midway

“Their liberal policies are good every four years for a campaign, but they don’t get the job done,” he said from the deck of the USS Midway in San Diego.

“The only policies that will reach into the hearts of the American people and pull people out of poverty and break the cycle of poverty are Republican principles, conservative principles.”

Click here: The reinvention of Mitt Romney – Edward-Isaac Dovere – POLITICO

But syndicated political columnist  Mark Shields has another reason for why millions of Americans can’t find jobs–or jobs that pay a living wage.

His culprit: International trade agreements.

Mark Shields

“They have been a disaster for American workers, a total disaster, beginning with NAFTA,” said Shields on the April 17 edition of the PBS Newshour.

“They have put all the power in the hands of the employer.

“The employer threatens, if you don’t go along, if you don’t surrender your bargaining rights, if you don’t surrender your health and pension benefits, if you don’t surrender collective union membership, we will move your job overseas.

“And as consequence of NAFTA some 22 years ago, documented by our own government, 755,000 jobs lost immediately, five million fewer American–five million fewer American manufacturing jobs than there were….

“We see it where all–the trade agreements, the investor class capital is protected, whether it’s copyrights or whatever, intellectual property, their investments. And they just pay lip service to workers’ rights….

“Median household income in the United States was lower in 2012 than it was in 1989. I’m not saying solely because of this, but largely because of this.

“If you want to see the dominance of capital that I think these trade agreements exemplify and embody, all you have to see is the 2008 crisis, economic crisis in this country.

“Millions of ordinary Americans saw their futures, their savings, their homes wiped out. And they got nothing in the way of relief.

“Those who had caused it, who had brought the country to its knees, the big banks and the investment houses of Wall Street, were bailed out by people. They were made whole.

“So, you had a choice. Who are you going to help and who you going to leave to make out for their own?

“We have capitalism for the rich and we have free enterprise, high risk for workers. And I just think this is what it exemplifies….American workers have lost their clout politically.”

Click here: Shields and Brooks on Pacific trade deal politics

Romney is right: “The rich have gotten richer, income inequality has gotten worse and there are more people in poverty than ever before.”

And so is Shields: “American workers have lost their clout politically.”

But what neither man offered was a solution–although one is available.

It is long past time for Americans to address the following evils for which employers are directly responsible:

  • The loss of jobs within the United States owing to companies’ moving their operations abroad—solely to pay substandard wages to their new employees.
  • The mass firings of employees which usually accompany corporate mergers or acquisitions.
  • The widespread victimization of part-time employees, who are not legally protected against such threats as racial discrimination, sexual harassment and unsafe working conditions.
  • The refusal of many employers to create better than menial, low-wage jobs.
  • The widespread employer practice of extorting “economic incentives” from cities or states in return for moving to or remaining in those areas. Such “incentives” usually absolve employers from complying with laws protecting the environment and/or workers’ rights.
  • The refusal of many employers to provide medical and pension benefits—nearly always in the case of part-time employees, and, increasingly, for full-time, permanent ones as well.
  • Rising crime rates, due to rising unemployment.

The solution to these evils can be summed up in three words: Employers Responsibility Act (ERA).

If passed by Congress and vigorously enforced by the U.S. Departments of Justice and Labor, an ERA would ensure full-time, permanent and productive employment for millions of capable, job-seeking Americans.

And it would achieve this without raising taxes or creating controversial government “make work” programs.

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