Now Just Five Men Own Almost as Much Wealth as Half the World’s Population

By Paul Buchheit

Source: CommonDreams

Last year it was 8 men, then down to 6, and now almost 5.

While Americans fixate on Trump, the super-rich are absconding with our wealth, and the plague of inequality continues to grow. An analysis of 2016 data found that the poorest five deciles of the world population own about $410 billion in total wealth. As of 06/08/17, the world’s richest five men owned over $400 billion in wealth. Thus, on average, each man owns nearly as much as 750 million people.

Why Do We Let a Few People Shift Great Portions of the World’s Wealth to Themselves? 

Most of the super-super-rich are Americans. We the American people created the Internet, developed and funded Artificial Intelligence, and built a massive transportation infrastructure, yet we let just a few individuals take almost all the credit, along with hundreds of billions of dollars.

Defenders of the out-of-control wealth gap insist that all is OK, because, after all, America is a ‘meritocracy’ in which the super-wealthy have ‘earned’ all they have. They heed the words of Warren Buffett: “The genius of the American economy, our emphasis on a meritocracy and a market system and a rule of law has enabled generation after generation to live better than their parents did.”

But it’s not a meritocracy. Children are no longer living better than their parents did. In the eight years since the recession the Wilshire Total Market valuation has more than TRIPLED, rising from a little over $8 trillion to nearly $25 trillion. The great majority of it has gone to the very richest Americans. In 2016 alone, the richest 1% effectively shifted nearly $4 trillion in wealth away from the rest of the nation to themselves, with nearly half of the wealth transfer ($1.94 trillion) coming from the nation’s poorest 90%—the middle and lower classes. That’s over $17,000 in housing and savings per lower-to-middle-class household lost to the super-rich.

A meritocracy? Bill Gates, Mark Zuckerberg, and Jeff Bezos have done little that wouldn’t have happened anyway. ALL modern U.S. technology started with—and to a great extent continues with—our tax dollars and our research institutes and our subsidies to corporations.

Why Do We Let Unqualified Rich People Tell Us How To Live? Especially Bill Gates! 

In 1975, at the age of 20, Bill Gates founded Microsoft with high school buddy Paul Allen. At the time Gary Kildall’s CP/M operating system was the industry standard. Even Gates’ company used it. But Kildall was an innovator, not a businessman, and when IBM came calling for an OS for the new IBM PC, his delays drove the big mainframe company to Gates. Even though the newly established Microsoft company couldn’t fill IBM’s needs, Gates and Allen saw an opportunity, and so they hurriedly bought the rights to another local company’s OS — which was based on Kildall’s CP/M system. Kildall wanted to sue, but intellectual property law for software had not yet been established. Kildall was a maker who got taken.

So Bill Gates took from others to become the richest man in the world. And now, because of his great wealth and the meritocracy myth, MANY PEOPLE LOOK TO HIM FOR SOLUTIONS IN VITAL AREAS OF HUMAN NEED, such as education and global food production.

—Gates on Education: He has promoted galvanic skin response monitors to measure the biological reactions of students, and the videotaping of teachers to evaluate their performances. About schools he said, “The best results have come in cities where the mayor is in charge of the school system. So you have one executive, and the school board isn’t as powerful.”

—Gates on Africa: With investments in or deals with MonsantoCargill, and Merck, Gates has demonstrated his preference for corporate control over poor countries deemed unable to help themselves. But no problem—according to Gates, “By 2035, there will be almost no poor countries left in the world.”

Warren Buffett: Demanding To Be Taxed at a Higher Rate (As Long As His Own Company Doesn’t Have To Pay) 

Warren Buffett has advocated for higher taxes on the rich and a reasonable estate tax. But his company Berkshire Hathaway has used “hypothetical amounts” to ‘pay’ its taxes while actually deferring $77 billion in real taxes.

Jeff Bezos: $50 Billion in Less Than Two Years, and Fighting Taxes All the Way 

Since the end of 2015 Jeff Bezos has accumulated enough wealth to cover the entire $50 billion U.S. housing budget, which serves five million Americans. Bezos, who has profited greatly from the Internet and the infrastructure built up over many years by many people with many of our tax dollars, has used tax havens and high-priced lobbyists to avoid the taxes owed by his company.

Mark Zuckerberg (6th Richest in World, 4th Richest in America) 

While Zuckerberg was developing his version of social networking at Harvard, Columbia University students Adam Goldberg and Wayne Ting built a system called Campus Network, which was much more sophisticated than the early versions of Facebook. But Zuckerberg had the Harvard name and better financial support. It was also alleged that Zuckerberg hacked into competitors’ computers to compromise user data.

Now with his billions he has created a ‘charitable’ foundation, which in reality is a tax-exempt limited liability company, leaving him free to make political donations or sell his holdings, all without paying taxes.

Everything has fallen into place for young Zuckerberg. Nothing left to do but run for president.

The False Promise of Philanthropy 

Many super-rich individuals have pledged the majority of their fortunes to philanthropic causes. That’s very generous, if they keep their promises. But that’s not really the point.

American billionaires all made their money because of the research and innovation and infrastructure that make up the foundation of our modern technologies. They have taken credit, along with their massive fortunes, for successes that derive from society rather than from a few individuals. It should not be any one person’s decision about the proper use of that wealth. Instead a significant portion of annual national wealth gains should be promised to education, housing, health research, and infrastructure. That is what Americans and their parents and grandparents have earned after a half-century of hard work and productivity.

Godzilla Amazon: The Amount of Power in Jeff Bezos’ Hands Should Frighten All Americans

Amazon very effectively uses technology and data to sidestep traditional restrictions on monopoly power.

By Matt Stoller

Source: AlterNet

To understand the depth and breadth of Jeff Bezos’ ambitions for the company he built, type www.relentless.com into your browser. The domain Bezos registered in 1994 will redirect to Amazon, the company aptly, and ambitiously, nicknamed The Everything Store. He tells his shareholders that the company will act like an aggressive startup — that at Amazon, it is always Day One.

Like Google and Facebook, Amazon uses technology and data to sidestep traditional restrictions on monopoly power. Our lives are increasingly organized by the platforms these companies run, platforms which now mediate the way we communicate and engage in commerce with each other. We are living in a world organized by tech monopolists, a change in power relationships that no one voted for but has been imposed upon us nonetheless.

Now, Bezos is attempting to add more power to his empire with the surprise announcement that the company will pay $13.7 billion for Whole Foods Market. Amazon will now have a store footprint in neighborhoods across America.

Our communities and the way we engage in commerce will change. Imagine walking into a Whole Foods store and seeing different prices depending on whether you are a member of Amazon Prime — or seeing different prices depending on any other way that you interact with Amazon.

This isn’t implausible. It is what the company does when it opens up stores. For instance, Amazon is creating a chain of physical book stores to take the place of the book stores the company destroyed. In these stores, there are no price tags at all: You scan the items with your phone and have a price delivered to you, personalized by Amazon. Why wouldn’t Amazon extend this to Whole Foods? “Our goal with Amazon Prime, make no mistake,” says Amazon CEO Jeff Bezos, “is to make sure that if you are not a Prime member, you are being irresponsible.”

This statement and the amount of power in Bezos’ hands should frighten all Americans. Bezos meant that Amazon will soon be so good for consumers that it would just be folly not to be a member. But what he unwittingly implied is that as a citizen, you will have no choice but to interact with his institution to buy and sell key goods that everyone needs — on his terms.

Jeff Bezos, in other words, has a vision. To be everywhere, to be the platform for everything for every consumer. So when Bezos calls you irresponsible for not tithing to Amazon, America has a big political problem.

Amazon’s takeover of Whole Foods means that it can target and eliminate regional competitors one by one as it did with its online competitors. When Diapers.com emerged as a competitor to Amazon, Amazon simply sold diapers below cost until the company capitulated and sold itself to Bezos. There’s no reason to assume Amazon wouldn’t bring the same predatory pricing strategy to bear in every city in America. Why wouldn’t it? Even though predatory pricing is illegal, the government hasn’t enforced those laws for decades. Whole Foods tends to source from local farms as part of a commitment to localism; these farms will now be negotiating with a much bigger entity that is committed to a ruthless model of efficiency.

There are so many ways that Amazon can use its power that it’s simply impossible to figure out what it will do. Amazon probably doesn’t even know yet; it will discover and test them, relentlessly. Maybe you will get first in line, or last in line, for the most popular toy during the Christmas period, or maybe the restaurant you own will get access to the freshest yet limited batch strawberries you need based on whether you are giving better deals to Prime members.

Or here’s a more creative possibility. Amazon is excluding Amazon Prime video from Apple TV so that Prime members will buy its streaming device instead of Apple’s. As the smartphone market commodifies and transforms, Bezos could simply use his combined physical and online footprint to keep you from even seeing prices at his stores unless you are using Amazon-approved electronic devices. If Amazon were just one of many stores that would be one thing. But Amazon is quickly becoming the dominant way to buy and sell.

And this, make no mistake, is what is happening. Upon the announcement of the acquisition, Target’s stock price dropped by 10 percent and Walmart’s by 5 percent. Amazon’s rose by more than the price it is paying for Whole Foods. Wall Street sees the writing on the wall. There is only one force that can stop Amazon from organizing and regulating basically all American retail commerce — our democratic institutions and our political system. We the people.

Bezos knows Amazon is a political enterprise at this point. The day before he announced his company’s attempt to buy this supermarket chain, he released a request on Twitter to have people offer ideas for where he can direct charity money. That is the kind of public relations undertaken by political leaders. And Amazon put out an ad for a Ph.D. economist-cum-lobbyist “to educate regulators and policy makers about the fundamentally procompetitive focus of Amazon’s businesses.” And he has put political fixers, like Ivanka Trump’s lawyer and ex-Clinton administration officer Jamie Gorelick, on his board of directors. He also bought The Washington Post.

The public should speak out in opposition to this merger. More than that, the government should take this opportunity to reject the entire pro-finance pro-concentration philosophy that has taken hold in this country since the Reagan era. It is no accident that Whole Foods founder John Mackey was forced to surrender his life’s work because financiers looking for a quick buck bought up a large bloc of shares in his company and pressured him to sell the company to Amazon. The day before the announcement of the sale, he called these hedge funds “Ringwraiths,” after the evil characters in “Lord of the Rings.” Bezos might be the most powerful empire-builder in the land, but he had help.

This merger should frighten all of us. But it should also embolden anyone who believes that America should not be in thrall to monopolists like Bezos. For them, today, as Jeff Bezos might put it, is Day One.

Matt Stoller is fellow at the Open Markets program, where he is researching the history of the relationship between concentrated financial power and the Democratic party in the 20th century.

The Man in the High Castle: When a Nazi-Run World Isn’t So Dystopian

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(Editor’s note: I recently viewed the pilot for the new “The Man in the High Castle” series and was disappointed for the same reasons mentioned in the article. For a PKD adaptation more faithful to the source material see Radio Free Albemuth.)

By Noah Berlatsky

Source: The Atlantic

Amazon’s new television adaptation The Man In the High Castle—part of the streaming service’s 2015 pilot season—opens in a conquered New York. The Nazis won World War II, and the American flag now bears a swastika. A few freedom fighters struggle on—we see one in particular brutally tortured and beaten to death—and the police are everywhere. Life in this alternate dystopia is a thing of fear and hardship, as in 1984, or The Handmaid’s Tale, or The Hunger Games. The familiar forces of freedom struggle against the familiar totalitarian forces of dystopia, epitomized, in the usual way, by a cruel, sadistic supervillain (here portrayed by Rufus Sewell as SS officer John Smith). If the Nazis had won the war, the TV series warns us, the world would have been much, much worse.

This message, as it happens, is a complete inversion of Philip K. Dick’s 1962 novel of the same name, on which the series is based. As such, it betrays the source material’s difficult and conflicted message in the interest of the banal genre default of plucky Americans fighting for freedom against the evil invaders; as Adi Robertson of The Verge suggests, it might as well be Red Dawn.

Superficially, perhaps, the novel isn’t all that different. Dick also imagines that the Nazis have won World War II, and the world under the Nazis is certainly horrible enough: The novel mentions several times that after their victory in the war, the Germans set about murdering everyone in Africa. Slavery has been reinstituted in the southern United States (an uncomfortable detail that isn’t mentioned in the pilot episode), and American Jews in Nazi-controlled areas have been systematically gassed. One of the Jewish main characters, Frank Frink (née Fink) is arrested on the Japanese-controlled west coast and scheduled for deportation to Germany. Meanwhile, in the TV series, Frink (Rupert Evans) only has a Jewish grandparent, which seems a bizarre alteration.

But while life in the novel’s alternate reality is certainly awful in many ways, it’s not exactly a dystopia, which is precisely why it’s so chilling. Dick’s book has little of the pulp melodrama of the TV pilot; there are no torture scenes, no supervillains, and not even a single scene set in the repressive Nazi-controlled region of the former U.S. Instead, the action occurs in the independent Mountain States or on the Japanese-controlled Pacific areas, and most of the characters go about their daily lives just as most of us do now. They have small problems and worries and cares, they adapt to quotidian injustices. But they do so without great urgency about the genocidal violence being inflicted on people on the other side of the world, continent, or neighborhood. The frightening thing isn’t the dystopia. It’s that the dystopia is so familiar it doesn’t really feel dystopian at all.

This is nowhere more clear than in the novel’s treatment of race. In the TV pilot, the bad guys are racists, and the good guys are not. Frank’s wife, Juliana Frink (Alexa Davalos), makes it clear that she opposes the racial laws that threaten her husband and that she harbors no racist feelings toward the Japanese conquerors. But in the book, things are a lot murkier. Juliana and Frank are estranged, and in her internal monologue she sneers at him for liking “Japs” and for being “ugly” with “large pores” and a “big nose.” Another character who doesn’t appear in the pilot, the salesman R. Childan, vacillates between obsequious paeans to Japanese racial superiority and resentful, vicious Orientalist stereotyping. Even Mr. Tagomi, the Japanese official who is the moral center of the book in most respects, lapses occasionally into racist invective—”white barbarian. Neanderthalyank. That subhuman …”— although he regrets it almost immediately.

It makes sense that a world in which the Axis won the war would be, in just about every way, more racist. But the uncomfortable question is, just how much more racist is it? Again, the Nazis seem to have created a protectorate of sorts in the southern U.S., the implication being that whites who supported Jim Crow there would find the Nazi racial doctrines quite congenial. And when Mr. Tagomi, in a quintessential Dickian moment, stumbles out of his alternate reality into the “real” 1962, his own racist preconceptions (as he orders whites around) are met in turn with the simmering racist antipathy of the world in which America won the war. (“Watch it, Tojo,” one man says to him.) The racism in Dick’s alternate universe isn’t alien. It’s homey.

The imagined and the real fit together in a number of other ways as well. One of Dick’s characters muses, for example, that the basic insanity of the Nazis is that “They want to be the agents, not the victims, of history. They identify with God’s power and believe they are godlike … Man has not eaten God; God has eaten man.” That’s a reasonable analysis of Nazi obsessions. But it’s also a reasonable analysis of American obsessions, as Carl Freedman points out in his book Critical Theory and Science Fiction. Dick, Freedman says, is linking “the quintessential Western will to domination with the horrors of genocidal Nazism.” And that Western will to domination is shown most clearly in the book through the Nazi plan to drop a bomb on the Japanese home islands. But in the real world the Nazis didn’t drop a bomb on the home islands. America did.

In the TV pilot, Juliana finds a banned newsreel called The Grasshopper Lies Heavy, which portrays a world in which the Allies won the war. The idea that this might be true fills her with an almost religious, tearful enthusiasm. In Dick’s version, The Grasshopper Lies Heavy is a book. Juliana discovers that that book is true—but her reaction is not exactly fervor. Instead, it’s a mixture of hope, bafflement, and a kind of displaced, distant fear. “Truth, she thought. As terrible as death.” That truth, or at least one possible truth suggested by Dick, is that there is no radical disjunction between his alternate history and our own. The TV show encourages us to congratulate ourselves on our horror at the Nazis, and our distance from them. But Dick’s novel suggests, disturbingly, that the defeat of the Nazis did not, in fact, truly transform the world. Their evil was not banished; it’s still here with us, a dystopia we can choose, and that many of us do choose, every day.