Tag Archives: financial crisis

Wake From The Nightmare Or Eternal Sleep For Humanity

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By Frank Scott

Source: Dissident Voice

The tradition of the dead generations weighs like a nightmare on the minds of the living.

— Karl Marx

Marx offered a thought for all seasons but one that might especially ring true during what is supposed to be a season of peace, joy and humanity. Contradicted by the ever more insanely harsh reality of marketing mass murder under the guise of creating freedom, much of our race, though still too few to radically transform the totality of our reality, has begun to rise in defense of all against a system that profits only a few. France’s recent experience was part of a hopeful trend in that segments of a public which has been bought, sold and rented into near poverty showed they are tired and demanded social justice over becoming what capital sees as a loss of its private profits. Their awakening from humanity’s nightmare, however brief it may seem, is inspiring as well as overdue. The actions of a predominately working class group of citizens demonstrating with enough fervor to force the French government to at least renege on some issues is in stark contrast to Americans trooping off to the polls to “resist” a personality while their system – the same one the French are up in arms about – disintegrates all around them. If we have anything to be happy about during the annual shopping frenzy of an alleged spiritual time for humanity, in a small way it’s a few changes in our congress, but in a greater way it’s the sign of awakening we see in France which will hopefully spread to more places in the New Year.

The social democratic salvation capital arranged after the depression of the twenties and thirties has collapsed and become a renewal of the worst forms of fascist capital that preceded and soon followed that brief cosmetic safety for some made possible only by the reduction to disfigured ugliness of others. The rise in status of a new middle class for millions in the western world was only possible with the misery of greater multitudes in what was called the third, or undeveloped world, but also the poverty class in that same west. There were people sleeping on the streets of America before, during, and after the last breakdown of capital given the brand name “the great depression”. This latest collapse that began in 2008 and is very possibly the last one that will wake up more than the French is only different in that it is worse and the numbers in the street have grown so much only the intellectually and morally blind cannot see them.

The wealth accumulation of the return to market fundamentalist roots was and continues to be shared by a shrinking minority while growing majorities have seen the facade of humanity brought about by social democratic capitalism dissolve in the reality of a take-no-prisoners brand of marketing. This Artificially Intelligent farce not only prides itself on the creation of poverty and warfare but dulls the sense of many of its innocent subjects by filling heads with propaganda that passes for news, entertainment to distract consciousness further, and the combination of the two that marketers call “infotainment”.

Thus we have a perverse form of capital therapy that herds us into near frenzied lynch mobs of genuinely frustrated and set upon souls directing energy at everything but the cause of most if not all the things that plague us. Rich individuals approaching deity status with economic powers beyond those of past royal despots are relatively invisible while some of their employees in government attract enough attention to be replaced by other of their employees who appeal to one or another interest or identity group affording pleasure to some, pain to most and continued ruling power to the incredibly rich minority at the top of the modern pyramid of capital.

Preposterous stories blaming Russia, China, Iran and possibly the Tooth Fairy for every sign of failure in what passes for a language perversion called the “free world” confuse and convince enough among the well fed and supposedly educated classes for the moment. When hardship eventually hits them in a material, rather than mental way, they will hopefully leave their identity groups and join the human race in the work necessary to transform global society.

Until the public good comes before private profit, things will get worse for all of us and any focus that continues separation of humans from potential majorities into smaller identity groups is simply the age old divide and conquer strategies always employed by minority rulers. This helps lead people with individual moral codes that find poverty and injustice intolerable to not only tolerate but to practice the most dreadful social policies imaginable. Privately, we Americans are as good, kind, compassionate, decent, and humane as any people on earth. Socially, however, we spend trillions on war, billions on pets, leave millions to live in poverty and hundreds of thousands to live on the street, and thus collectively become among the most degenerate moral perverts on the planet.

The skin tone, ethnicity, religion, sex or sexual preference of those serving capital while eating meals and flushing toilets at the white house or in slightly lesser roles in congress makes no difference to their victims reduced to cleaning the debris of death and destruction in the places where they oversee the bombing and looting. After their homes and nations are ruined we welcome some of them as migrants offering us cheap labor and a balm for our souls to maintain holiday spirit until the next slaughter we conduct. Food, clothing and shelter are basic human needs, not separate identity practices. They become so under private profit first economics that assure only some of the public will experience good, and that group is shrinking. The only way to assure a better life for all is for the ruling power to come from people who put the public good first, before any private gain is considered. Everyone has to be assured of food, clothing and shelter before anyone can aspire and work for even more by achieving private profit at the market. There is only one way to achieve that change and end society’s nightmare: the democratic forces of humanity must replace the market forces of capital. Happy New Year.

The Evidence Pours In: Poverty Is Getting Much Worse In America

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By Paul Buchheit

Source: Occupy.com

A White House report recently proclaimed that the “War on Poverty is largely over and a success.” United Nations Ambassador Nikki Haley said it was “ridiculous for the United Nations to examine poverty in America.”

Well-positioned Americans must talk like this, of course, because admitting the debilitating state of poverty in America might provoke feelings of guilt for 35 years of oppressive economic policies. Wealthier people need to take an honest look at the facts. They need to face reality as it sadly exists in America today.

1 in 7 Americans is Part of the World’s Poorest 10%

According to the Credit Suisse 2018 Global Wealth Databook, 34 million American adults are among the world’s poorest 10%. How is that possible? In a word, debt. In more excruciating words: stifling, misery-inducing, deadly amounts of debt for the poorest Americans. And it goes beyond dollars to the “deaths of despair” caused by the stresses of inferior health care coverage, stagnating incomes, and out-of-control inequality.

Numerous sources report on the rising debt for the poor half of America, especially for the lowest income group, and largely because of health care and education costs. Since 2008 consumer debt has risen almost 50 percent. The percentage of families with more debt than savings is higher now than at any time since 1962.

It could be argued that Scandinavian countries face the same degrees of debt as Americans. But far less of the debt is for health and education costs. And the Scandinavian safety net is renowned for its generous provisions for all citizens.

Half of us Are in or Near Poverty

$1 in expenses twenty years ago is now $1.25. $1 in earnings twenty years ago is now still $1.

More and more Americans are facing financial difficulty. Estimates of adults living from paycheck to paycheck range from half to 60 percent to 78 percent. Any sign of a recession would be devastating for most of us.

It’s estimated that a typical U.S. household needs about $60,000 annually to meet all expenses. That’s only manageable if two adults are working full-time for $15 per hour. Beyond that, little cushion exists. No American adult in the bottom 40% has more than $31,124 in total wealth, including house and car and savings (Table 3-4).

Booming Economy, Low Unemployment, and Other Deceptions

While 1 in 7 Americans is part of the world’s poorest 10%, nearly 3 in 7 Americans are part of the world’s richest 10%. The economy is booming for THEM. Yet the Wall Street Journal has the arrogance to claim that “Americans traditionally left behind…are reaping the benefits..”

How about the “jobs for everyone” fantasy? The official unemployment rate, according to the Bureau of Labor Statistics (BLS) itself, is based on employees “who did any work for pay or profit during the survey reference week.” The BLS workforce includes contingent and alternative employment arrangements that make up about 10% of the workforce. It includes part-time workers (even one hour a week!), who make up about 16% of the workforce. And, inexplicably, it fails to count as unemployed those who have given up looking for work – 4% more Americans than in the year 2000.

Many of today’s ‘gig’ jobs don’t pay a living wage, and most have no retirement or health benefits, no job security, no government regulations backing them, and usually a longer work day, with many people putting in 10- to 12-hour days for $13 per hour or less. According to a New York Times report, “41.7 million laborers – nearly a third of the American work force – earn less than $12 an hour, and almost none of their employers offer health insurance.”

Safety Net Failures

While it’s true that the U.S. spends a greater percentage of its GDP on social safety net programs than developing countries, Americans generally have to face much higher costs for housing, heating, transportation, child care, and other basic expenses.

Beyond this, there are significant shortcomings in American social protections, as pointed out by the UN. These include the “shockingly high number of children living in poverty” and the “reliance on criminalization to conceal the underlying poverty problem.” Furthermore, with the call for work requirements comes the realization that the job market for the poorest Americans is “extraordinarily limited.”

Poverty: Not Just a Number

Poverty is living without health care, and choosing the life-threatening alternative of opioid painkillers. Poverty is the stress of overwhelming debt; the steady decline of jobs that pay enough to support a family; the inability to afford a move to a desired neighborhood; the deadening impact of inequality on physical and mental well-being.

The United Nations describes America as a nation near the bottom of the developed world in safety net support and economic mobility, with its citizens living “shorter and sicker lives compared to those living in all other rich democracies,” with the highest infant mortality rate in the developed world, the world’s highest incarceration rate, and the highest obesity levels.

Low-income Americans are often surrounded by food deserts, with insufficient access to clean water and sanitation, and with the pollution levels of third-world countries. The poorest among us are even susceptible – unbelievably – to rare tropical diseases and once-eradicated scourges like hookworm.

The extreme levels of American poverty and inequality are ripping apart once-interdependent communities with mental health and homelessness problems, and with a surge in drug and alcohol and suicide“deaths of despair.”

Part of the definition of poverty is “the state of being inferior in quality.” As one of the most unequal nations in the entire world, America is also, in many ways, one of the most poverty-stricken.

How the West eats its children

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By Thierry Meyssan

Source: VoltaireNet.org

The cause of Western recession

International relations experienced a profound change with the paralysis of the Soviet Union in 1986, when the State was unable to control the civilian nuclear incident in Tchernobyl [1], then with the revocation of the Warsaw Pact in 1989, when the East German Communist Party [2] destroyed the Berlin Wall, and finally, with the dissolution of the USSR in 1991.

At that time, the President of the United States, George Bush Sr., decided to demobilise one million soldiers and devote the efforts of his country to its own prosperity. He wanted to transform US hegemony within its zone of influence, and expand it into that of the leader of the world, the guarantor of world stability. With that, he laid the foundations for a « New World Order », first of all in the speech he gave side by side with British Prime Minister Margaret Thatcher, at the Aspen Institute (2 August 1990), then during his speech to Congress (11 September 1990), announcing operation « Desert Storm » [3].

The world of the après-Soviet Union is one of free circulation, not only of merchandise, but also world capital, under the unique control of the United States. In other words, the passage from capitalism to financialisation – not the triumphant culmination of free exchange, but an exacerbated form of colonial exploitation of the whole world, including the West. Within the space of a quarter of a century, the major US fortunes have multiplied many times, and the global wealth of the world has increased considerably.

By allowing capitalism to run wild, President Bush Sr. hoped to extend prosperity to the world. But capitalism is not a political project, it is simply a system of logic designed for creating profit. The logic of the US multinationals was to increase their profits by delocalising production to China, where it is now possible, and where workers are the lowest paid in the world.

Those who were prepared to measure the cost of this advance for the West were few and far between. New middle classes began to appear in the third world, and although they were, of course, far less wealthy than those in the West, they enabled new, mainly Asian states, to play a rôle on the world stage. But simultaneously, Western middle classes began to disappear [4], meaning that it became impossible for the democratic institutions they built to survive. Above all, the populations of entire regions were to be entirely crushed, starting with those of the African Great Lakes. This first regional war caused 6 million deaths, in Angola, Burundi, Namibia, Uganda, the Democratic Republic of Congo, Rwanda and Zimbabwe, and was met with general incomprehension and indifference. The aim was to continue to seize the natural resources of these countries, but to pay less and less for them, which meant dealing with gangs rather than with the States who had to feed their populations.

The sociological transformation of the world is happening very fast and is clearly without precedent, although we do not have the statistical tools available today to evaluate it with precision. However, everyone can witness the increase in power of Eurasia, (not in the Gaullist sense of « Brest to Vladivostok », but that of Russia and Asia without Western and Central Europe), which seeks liberty and prosperity, while the Western powers, including the United States, are slowly and progressively declining, limiting individual freedom and ejecting half of their population into zones of poverty.

Today, the percentage of imprisonment in China is four times inferior to that of the United States,while their purchasing power is slightly higher. Objectively therefore, with all its faults, Chine has become a freer and more prosperous country than the United States.

This process was predictable from the beginning. Its application was studied for a long time. So, on 1 September 1987, a US forty-year-old published a page of counter-current publicity in the New York Times, the Washington Post and the Boston Globe. He warned his compatriots about the rôle that President Bush Sr. was planning to allocate to the United States – to assume and finance out of their own pockets the responsibility for the developing « New World Order ». People read it and laughed. The author of these texts was real estate promoter, Donald Trump.

The application of the economic model to international relations

One month after the attacks of 11 September 2001, US Secretary of Defense Donald Rumsfeld nominated his friend Admiral Arthur Cebrowski as Director of the new Office of Force Transformation. He was tasked with changing the culture of the entire US military in order to enable it to respond to a complete change in its mission

There was no longer question of using US armies to defend principles or interests, but to use them for a reorganisation of the world by dividing it into two parts – one one side the states integrated into the globalised economy, and on the other, the others [5]. The Pentagon would no longer fight wars in order to steal natural resources, but to control access to those resources by the globalised nations. A division directly inspired by the process of globalisation which had already trashed half of the Western populations. This time, it was half of the world’s population which was to be excluded [6].

The reorganisation of the world began in the political zone known as the « Greater Middle East », that is to say stretching from Afghanistan to Morocco, with the exception of Israël, Lebanon and Jordan. This brought about the alleged epidemic of civil wars in Afghanistan, Iraq, Sudan, Libya, Syria and Yemen, which has already caused several million deaths.

Like a monster eating its own children, the global financial system based in the United States faced its first crisis in 2008, when the subprime bubble burst. Contrary to a commonly-held belief, this was absolutely not a global crisis, but a Western problem. For the first time, the NATO states experienced the first consequences of the policy they were supporting. Yet the upper Western classes changed nothing in their behaviour, as they witnessed with compassion the wreck of the middle classes. The only notable modification was the adoption of the « Volcker rule » [7], which forbade banks from profiting from information obtained from their clients in order to speculate against their interests. But while conflicts of interest enabled a number of crooks to get rich fast, they are not the root of the problem, which is far more wide-reaching.

The revolt of the Western populations

The revolt of the Western middle and working classes against the globalised upper class began two years ago.

Aware of the Western recession as compared with Asia, the people of the United Kingdom were the first to attempt to save its life-style by leaving the European Union and turning to China and the Commonwealth (referendum of 23 June 2016) [8]. Unfortunately, the leaders of the United Kingdom were unable to conclude the agreement they hoped for with China and experienced great difficulty in reactivating their links with the Commonwealth.

Then, witnessing the collapse of their civil industries, a part of the United States voted, on 8 November 2016, for the only Presidential candidate who was opposed to the New World Order, Donald Trump. He spoke of a return to the « American dream ». Unfortunately for his voters, although Donald Trump began to question the rules of globalised commerce, he had no team with him apart from his family, and was only able to modify, but not change, the military strategy of his country. Almost all of the general officers had adopted the Rumsfeld-Cebrowski ideology, and could no longer imagine themselves in any other role than defenders of financial globalisation.

Aware of the collapse of their national industry, and certain that they would be betrayed by their upper class, the Italians voted, on 4 March 2018, for an anti-system party composed of the Ligue and the 5-star Movement. These parties built an alliance in order to implement social policies. Unfortunately, they were rejected by the European Union [9]. In France, tens of thousands of SME’s (small and medium-sized enterprises), subcontractors of industry, had gone bankrupt over the last ten years, but their compulsory tax deductions, already among the highest in the world, increased by 30 % over the same period.

Several hundreds of thousands of French people suddenly took to the streets to demonstrate against abusive financial measures. Unfortunately for them, the French upper classes have been contaminated by the very idea that was rejected by the United States, and therefore did their best to adapt their policies to the popular revolt, but not to change its basic causes.

If we look at each of these four countries separately, we will find four different explanations for what is happening there. But if we analyse the situation as a single phenomenon affecting different cultures, we will discover the same mechanisms across the board. In these four countries, consecutive with the end of capitalism, the middle classes disappeared more or less rapidly, and with them the political system that they incarnated – Democracy.

So either the Western leaders abandon the financial system they have developed and return to the productive capitalism of the Cold War, or they will have to invent a different organisation that no-one has so far been able imagine. Failing that, the West, which has directed the world for five centuries, will sink into a long period of internal chaos.

The Syrians were the first non-globalised People capable of surviving and resisting the destruction of Rumsfeld-Cebrowski’s infra-world. The French were the first globalised people to rise up against the destruction of the West, even if they are not aware that they are fighting the same unique enemy of all of humanity. President Emmanuel Macron is not the man for the situation, not because he has any responsibility for the system that preceded him, but because he is pure product of that system. In response to the riots in his country, he spoke from the G20 in Buenos-Aires, declaring that the meeting was a success in his eyes, (which it was not), and that he intended to advance more efficiently than his predecessors – in the wrong direction.

How to save privilege

It appears that the British ruling class has its solution – if London in particular and the Western nations in general are no longer capable of ruling the world, it will be necessary to cut one’s losses and divide the world into two distinct zones. This is the policy implemented by Obama in the final months of his presidency [10], then by Theresa May, and now by Donald Trump, with their refusal to cooperate and their ready-made accusations, first of all against Russia and now against China.

It also seems that Russia and China, despite their historical rivalry, are aware that they will never be able to ally themselves with these Westerners who have never ceased trying to carve them up. This is the source of their project, the « Eurasian Economic Union » – if the world must be split in two, each participant will have to organise its own. In concrete terms, for Beijing, this means abandoning half of its « Silk Road » project and its redeployment with Moscow only in Greater Eurasia.

How to determine the line of demarcation

For the West and Greater Eurasia, it will be necessary to determine the split line as fast as possible. For example, what side will Ukraine choose? The construction by Russia of the Kertch bridge was aimed at separating the country, absorbing the Donbass and the Azov Sea basin, then Odessa and Transnistria. On the contrary, the incident at Kertch, organised by the Western powers, is aimed at enrolling all of Ukraine into NATO before the country fractures.

Since the ship of financial globalisation is sinking, many people are beginning to save their personal interests without any care for others. For example this is the source of the tension between the European Union and the United States. As far as this game is concerned, the Zionist movement has always had a length’s lead, which explains the mutation of Israëli strategy, which has abandoned Syria to Russia, and turned to both the Gulf States and East Africa.

Perspectives

Taking into account what is at play here, it is obvious that the insurrection in France is only the beginning of a much wider process which is going to spread to other Western countries.

It would be absurd to believe that at a time of financial globalisation, a government, whatever it might be, could resolve the problems of its country without first of all questioning international relations and at the same time regaining its capacity for action. But precisely, foreign policy has been kept on the sidelines of the democratic field since the dissolution of the Soviet Union. It is both necessary and urgent to resign from almost all of the treaties and engagements of the last thirty years. Only the states which are able to re-affirm their sovereignty can hope to recover.

Translation
Pete Kimberley

[1] According to Michaïl Gorbatchev, this was the event that made possible the dissolution of the Warsaw Pact and the Soviet Union in so far as it delegitimised the State.

[2] Contrary to a commonly-held belief in the West, it was the nationalists from the East-German Communist Party (and the Lutheran churches), and not the anti-Communists (and pro-US movements), who broke down the symbol of Soviet domination, the Wall.

[3] The main purpose of the invasion of Iraq was not to liberate Kuwaït, but to use this affair to build the strongest coalition possible under US command, including the USSR.

[4] Global Inequality. A New Approach for the Age of Globalization, Branko Milanovic, Harvard University Press, 2016.

[5] “The US military project for the world”, by Thierry Meyssan, Translation Pete Kimberley, Voltaire Network, 22 August 2017.

[6] It is obvious that the wars of Bush Jr. and Obama were never intended to expand the Empire. First of all because by definition, democracy can only come from the People, not imposed by bombs. And then because the United States was already a plutocracy.

[7] The ex-president of the US Federal Reserve, Paul Volcker, is on the other hand, one of the architects of global financialisation. It is Volcker who took legal action on behalf of the UNO against the people and entities who had helped Iraq to bypass the UN embargo (the « oil for food » affair). Volcker is one of the principal personalities of the Pilgrim’s Society, the trans-Atlantic club presided by Queen Elizabeth II. As such, he became the main economic advisor to President Barack Obama, and organised part of his cabinet.

[8] “The new British Foreign Policy”, by Thierry Meyssan, Translation Pete Kimberley, Voltaire Network, 4 July 2016.

[9] Replacing the European Common Market, which was originally a system for cooperation between states, the European Union, as defined by the Treaty of Maastricht, is a supranational

[10] “Two separate worlds”, by Thierry Meyssan, Translation Pete Kimberley, Al-Watan (Syria) , Voltaire Network, 8 November 2016.

Why Are so Few Americans Able to Get Ahead?

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By Charles Hugh Smith

Source: Of Two Minds

Our entire economy is characterized by cartel rentier skims, central-bank goosed asset bubbles and stagnating earned income for the bottom 90%.

Despite the rah-rah about the “ownership society” and the best economy ever, the sobering reality is very few Americans are able to get ahead, i.e. build real financial security via meaningful, secure assets which can be passed on to their children.

As I’ve often discussed here, only the top 10% of American households are getting ahead in both income and wealth, and most of the gains of these 12 million households are concentrated in the top 1% (1.2 million households). (see wealth chart below).

Why are so few Americans able to get ahead? there are three core reasons:

1. Earnings (wages and salaries) have not kept up with the rising cost of living.

2. The gains have flowed to capital, which is mostly owned by the top 10%, rather than to labor ((wages and salaries).

3. Our financialized economy incentivizes cartels and other rentier skims, i.e. structures that raise costs but don’t provide any additional value for the additional costs.

It’s instructive to compare today’s household with households a few generations ago. As recently as the early 1970s, 45 years ago, it was still possible for a single fulltime-earner to support the household and buy a home, which in 1973 cost around $30,000 (median house price, as per the St. Louis FRED database).

As recently as 20 years ago, in 1998, the median house price in the U.S. was about $150,000— still within reach of many two-earner households, even those with average jobs.

As the chart below shows, real median household income has only recently exceeded the 1998 level— and only by a meager $1,000 annually. If we use real-world inflation rather than the under-estimated official inflation, real income has plummeted by 10% or more in the past 20 years.

This reality is reflected in a new study of wages in Silicon Valley, which we might assume would keep up due to the higher value of the region’s output. The study found the wages of the bottom 90% declined when adjusted for inflation by as much as 14% over the past 20 years:

“The just-released report showed that wages for 90 percent of Silicon Valley workers (all levels of workers except for the top 10 percent)are lower now than they were 20 years ago, after adjusting for inflation. That’s in stark contrast to the 74 percent increase in overall per capita economic output in the Valley from 2001 to 2017.”

source: Why Silicon Valley Income Inequality Is Just a Preview of What’s to Come for the Rest of the U.S.

Meanwhile, the median house price has more than doubled to $325,000 while median household income has stagnated. Please note this price is not adjusted for inflation, like the median income chart. But if we take nominal household income in 1998 (around $40,000 annually) and compare it to nominal household income now in 2018 (around $60,000), that’s a 50% increase–far below the more than doubling of house prices.

To raise stagnant incomes, the Federal Reserve and other central banks have attempted to generate a wealth effect by boosting the valuations of risk-on assets such as stocks, bonds and commercial real estate. But the Fed et al. overlooked the fact that the vast majority of these assets are owned by the top 10%–and as noted above, the ownership of the top 10% is concentrated in the top 1% and .1%.

As a result, the vast majority of the wealth effect capital gains have flowed to the top 1%:

Lastly, the cartel structure of the U.S. economy has raised costs while providing no additional value. One example is higher education, a cartel that issues diplomas with diminishing economic value that now cost a fortune, a reality reflected in this chart of student loan debt, which simply didn’t exist a generation ago:

Our entire economy is characterized by cartel rentier skims, central-bank goosed asset bubbles and stagnating earned income for the bottom 90%. Given these realities, the bottom 90% are left with few pathways to get ahead in terms of financial security and building secure family wealth.

 

America’s Social Depression Is Accelerating

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By Charles Hugh Smith

Source: Of Two Minds

We need to value honesty above optimism. Once we can speak honestly, there is a foundation for optimism.

Beneath the rah-rah statistics of “the greatest economy ever,” the social depression is accelerating. The mainstream is reluctantly waking up to the future of the American Dream: downward mobility for all but the top 10% of households. A 2015 Atlantic article fleshed out the zeitgeist with survey data that suggests the Great Middle Class/Nouveau Proletariat is also waking up to a future of downward mobility: The Downsizing of the American Dream: People used to believe they would someday move on up in the world. Now they’re more concerned with just holding on to what they have.

I have been digging into the financial and social realities of what it takes to be middle class in today’s economy for years: Are You Really Middle Class?

The reality is that the middle class has been reduced to the sliver just below the top 5%–if we use the standards of the prosperous 1960s as a baseline.

The downward mobility isn’t just financial–it’s a decline in political power, control of one’s work and income-producing assets. This article reminds us of what the middle class once represented: What Middle Class? How bourgeois America is getting recast as a proletariat.

The costs of trying to maintain a toehold in the upper-middle class are illuminated in these recent articles on health and healthcare–both part of the downward mobility:

Health Care Slavery and Overwork

How a toxic workplace could, literally, destroy your health

We’re afraid our work is killing us, and we are right

This reappraisal of the American Dream is also triggering a reappraisal of the middle class in the decades of widespread prosperity: The Myth of the Middle Class: Have Most Americans Always Been Poor?

Downward mobility excels in creating and distributing what I term social defeat: In my lexicon, social defeat is a spectrum of anxiety, insecurity, chronic stress, powerlessness, and fear of declining social status.

Downward mobility and social defeat lead to social depression. Here are the conditions that characterize social depression:

1. High expectations of endless rising prosperity have been instilled in generations of citizens as a birthright.

2. Part-time and unemployed people are marginalized, not just financially but socially.

3. Widening income/wealth disparity as those in the top 10% pull away from the shrinking middle class.

4. A systemic decline in social/economic mobility as it becomes increasingly difficult to move from dependence on the state (welfare) or one’s parents to financial independence.

5. A widening disconnect between higher education and employment: a college/university degree no longer guarantees a stable, good-paying job.

6. A failure in the Status Quo institutions and mainstream media to recognize social recession as a reality.

7. A systemic failure of imagination within state and private-sector institutions on how to address social recession issues.

8. The abandonment of middle class aspirations by the generations ensnared by the social recession: young people no longer aspire to (or cannot afford) consumerist status symbols such as luxury autos or homeownership.

9. A generational abandonment of marriage, families and independent households as these are no longer affordable to those with part-time or unstable employment, i.e. what I have termed (following Jeremy Rifkin) the end of work.

10. A loss of hope in the young generations as a result of the above conditions.

The rising tide of collective anger arising from social depression is visible in many places: road rage, violent street clashes between groups seething for a fight, the destruction of friendships for holding the “incorrect” ideological views, and so on. I Think We Can Safely Say The American Culture War Has Been Taken As Far As It Can Go.

A coarsening of the entire social order is increasingly visible: The Age of Rudeness.

Depressive thoughts (and the emotions they generate) tend to be self-reinforcing, and this is why it’s so difficult to break out of depression once in its grip.

One part of the healing process is to expose the sources of anger that we are repressing. As psychiatrist Karen Horney explained in her 1950 masterwork, Neurosis and Human Growth: The Struggle Towards Self-Realization, anger at ourselves sometimes arises from our failure to live up to the many “shoulds” we’ve internalized, and the idealized track we’ve laid out for ourselves and our lives.

The recent article, The American Dream Is Killing Us does a good job of explaining how our failure to obtain the expected rewards of “doing all the right things”(getting a college degree, working hard, etc.) breeds resentment and despair.

Since we did the “right things,” the system “should” deliver the financial rewards and security we expected. This systemic failure to deliver the promised rewards is eroding social mobility and the social contract while generating frustration, anger, etc.

We are increasingly angry at the system, but we reserve some anger for ourselves, because the mass-media trumpets how well the economy is doing and how some people are doing extremely well. Naturally, we wonder, why them and not us? The failure is thus internalized.

One response to this sense that the system no longer works as advertised is to seek the relative comfort of echo chambers–places we can go to hear confirmation that this systemic stagnation is the opposing political party’s fault.

We don’t just self-sort ourselves into political “tribes” online– we are congregating in increasingly segregated communities and states:.

Americans are moving to communities that align more with their politics. Liberals are moving to liberal areas, and conservatives are moving to conservative communities. It’s been going on for decades. When Jimmy Carter was elected in 1976, 26.8% of Americans lived in landslide counties; that is counties where the president won or lost by 20% of the vote.

By 2004, 48.3% of the population lived in these counties. This trend continues to worsen. As Americans move to their preferred geographic bubbles, they face less exposure to opposing viewpoints, and their own opinions become more extreme. This trend is at the heart of why politics have become so polarizing in America.

We’re self-sorting at every level. Because of this, Americans are only going to grow more extreme in their beliefs, and see people on the other side of the political spectrum as more alien.”

Part of the American Exceptionalism we hear so much about is a can-do optimism: set your mind to it and everything is possible.

The failure to prosper as anticipated is generating a range of negative emotions that are “un-American”: complaining that you didn’t get a high-paying secure job despite having a college degree (or advanced degree) sounds like sour-grapes: the message is you didn’t work hard enough, you didn’t get the right diploma, etc.

It can’t be the system that’s failed, right? I discuss this in my book Why Our Status Quo Failed and Is Beyond Reform: the top 10% who are benefiting mightily dominate politics and the media, and their assumption is: the system is working great for me, so it must be working for everyone. That’s the implicit narrative parroted by status quo mouthpieces.

The inability to express our despair and anger generates depression. Some people will redouble their efforts, others will seek to lay the blame on “the other” (some external group) and others will give up. What few people will do is look at the sources of systemic injustice.

Perhaps we need a national dialog about declining expectations, rising inequality and the failure of the status quo that avoids the blame-game and the internalization trap (i.e. it’s your own fault you’re not well-off).

We need ways to express our resentment, anger, despair, etc. that are directed at the source, the complex system we inhabit, not “the other.” We need to value honesty above optimism. Once we can speak honestly, there is a foundation for optimism.

The Wealth Hiding in Your Neighborhood

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From country farmland to big city skyscrapers, absentee billionaires may be hiding wealth in your town — and driving up your cost of living.

By Chuck Collins

Source: OtherWords

The rich are hiding trillions in wealth.

You’ve probably heard about their offshore bank accounts, shell corporations, and fancy trusts. But this wealth isn’t all sitting in the Cayman Islands or Panama. Much of it’s hiding in plain view: maybe even in your town.

America’s big cities are increasingly dotted with luxury skyscrapers and mansions. These multi-million dollar condos are wealth storage lockers, with the ownership often obscured by shell companies.

In Boston, where I live, there’s a luxury building boom. According to a study I just co-authored, out of 1,805 luxury units — with an average price of over $3 million — more than two-thirds are owned by people who don’t live here.

One-third are owned by shell companies and trusts that mask their ownership. And of these units, 40 percent are limited liability companies (LLCs) organized in Delaware.

Why Delaware?

Criminals around the world set up their shell companies in Delaware, the premiere secrecy jurisdiction in the United States — where you don’t have to disclose who the real owners are. As a result, human traffickers, drug smugglers, and tax evaders all enjoy the anonymous cover of a Delaware company.

Many of these companies use illicit funds to purchase real estate in North American cities to launder their ill-gotten money.

In New York City, dozens of luxury towers have been connected to global money laundering. In Vancouver, Chinese investors disrupted the city’s housing market so badly that the province of British Columbia established a foreign investor tax and a tax on vacant properties.

With European countries now insisting on more transparency, illicit cash is now cascading into the United States. In fact, the U.S. is now the world’s second-biggest tax haven and secrecy jurisdiction, after Switzerland.

The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has increased its scrutiny over real estate markets in Miami, New York, and parts of California, Texas, and Hawaii.

But that just makes the rest of the country more attractive for secret cash — even far from big cities. In a small Vermont town, I met a Russian investor who lives in Dubai. He was buying up thousands of acres of Green Mountain farmland.

Our communities are being fundamentally transformed by land grabs and luxury building booms. These drive up the cost of land in central neighborhoods, with ripple impacts throughout a community. And this worsens the already grotesque inequalities of income, wealth, and opportunity.

Our communities should defend themselves.

Property ownership should have to pass the “fishing license” or “library card” test. In most communities, to get a library card or a fishing license, you need to prove who you are and where you actually live.

In Boston, they’re pretty strict — you need to show a utility bill with your name on it. Cities should require the same for real estate purchases.

At a national level, bi-partisan legislation from Senators Marco Rubio and Sheldon Whitehouse would require real estate owners to be disclosed when buyers use shell corporations and pay millions in cash. That would be a welcome development.

Better still, cities should tax luxury real estate transactions on properties selling for over $2 million to fund local services. Such a tax in San Francisco generated $44 million last year that’s been used to fund free community college and help the city’s neglected trees.

Communities could discourage high-end vacant properties by taxing buildings that sit empty for more than six months a year. Cities like Vancouver have created incentives to house people, not wealth.

We need to defend our communities for the people who live in them, not just store their wealth there.

Reimagining the Middle Class

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In her new book, Alissa Quart chronicles what happens when capitalism and families collide

By Ann Neumann

Source: The Baffler

AS THE ECONOMIC STATUS OF MANY in the United States has declined over the past several decades, journalists have often focused on the challenges faced by the working poor. In her new book, Squeezed: Why Our Families Can’t Afford America, Alissa Quart writes about how economic inequality has also drastically changed the middle class, destabilizing what was once considered a secure class and sending families into the tailspin of debt, overwork, underemployment, and precarious financial states. Squeezed demonstrates that inequality is not just a problem of those left behind in the lowest financial brackets, but a feature of our current economic system characterized by working professionals who are unable to pay for child care, declining job salaries, shifting work hours, and unaffordable housing. Families too often wrestle with “penalizing” factors, like women’s depressed salaries and unaffordable health care, making success unattainable for a formerly comfortable, educated, and skilled demographic of society.

The book challenges us to reimagine our prior understanding of what it means to be middle class, even as legislators champion “traditional values” that contradict the needs and responsibilities of families—and erode a safety net that once supported U.S. workers. Some of the factors that have upended the middle class are obvious—declining salaries, for instance—but others remain masked by corporate and social portrayal of them as a benefit to today’s workers. The gig economy, which, we’re told, gives workers young and old more flexibility and independence, turns out to be a contributor to what Quart calls the forever clock, a twenty-four-hour schedule that has usurped family and free time by keeping workers on constant call. Squeezed recounts the lives of the teachers who work second jobs, the professional mothers who struggle to pay for day care, the paralegals and adjuncts who have to moonlight to pay the rent, the well educated who never found a job in their intended profession that provides a livable salary. And the book causes us to ask why so many suffer in isolation, too ashamed to acknowledge their economic plight and too belabored to politically address it.

Quart is executive editor of the Economic Hardship Reporting Project, a nonprofit organization founded by Barbara Ehrenreich (a contributing editor for The Baffler) that supports journalism examining economic inequality, its causes and solutions (EHRP has funded my own work and that of others published at The Baffler). Quart is the author of four previous books: Branded, Republic of Outsiders, Hothouse Kids, and the poetry book Monetized. She also co-writes, with Maia Szalavitz, a column for The Guardian titled “Outclassed.”

This month, Quart stopped by The Baffler office to talk to me about Squeezed. We’ve known each other for several years and I read the book in manuscript, so our conversation was casual, touching on individuals in the book, our own squeezed lives, how we can counter economic decline, and a necessary new definition of self-help.

Ann Neumann: Squeezed straddles the Trump election and very often people on the left—and the right, to be honest—are using this as a clear demarcation. I think one of the things the book does really well is point out that the mechanisms in place that harm working class families have been long in coming.

Alissa Quart: The reason Sanders and Trump could tap into anger are the numbers of those economically squeezed; it’s what I was seeing anecdotally. And you can feel that. You can feel when you go sit in people’s living rooms, when you talk to them on the phone. I went to a conference called iRelaunch that was all about helping people to start their careers over and the room just rippled with shame and fear. And acidic humor.

AN: How did the election change this book project?

AQ: I think it gave it new urgency for me. Just as it gave urgency to the Economic Hardship Reporting Project, the organization I run. I think everyone in journalism felt like we have to tell these stories. The Trump effect has made me feel like I have to keep a laser focus on the things people are ignoring and try to find a way for readers to pay attention to them. We’re all focusing on Ivanka and whether she’s the c-word or not, which is fine, there are all kinds of things happening around us and in our own lives politically that have nothing directly to do with what Trump is tweeting, but the effects of his administration and long-term trends are real and we just need to keep looking.

We just published an article at EHRP about a journalist who lives in a $17 a night Airbnb, places below what you usually scroll to. But this person was a working journalist who was getting six-figure advances fifteen or twenty years ago. There are all these human examples that constantly show this decline. Fine, maybe the job numbers are up, but how many jobs are people working and are they jobs in the professions? Are they jobs that pay enough for people to live in cities? Or they’re working three different jobs which leads us to things like, as in this book, twenty-four-hour day care.

AN: Day care centers that are open twenty-four hours to accommodate parents with nontraditional work hours or multiple jobs.

AQ: And they are growing in number. I wrote a piece on this; I called it the dystopian social net. I feel like that’s part of my life’s work. I love dystopian fiction and science fiction, probably because it seems a few clicks away from the life we’re leading. It’s a markedly different life and childhood than the one you and I had. It may be horrible, or maybe not, but we’re seeing a palpable transformation in what childhood can be in the course of twenty years.

AN: And that’s really just the decline of income?

AQ: It’s people working different hours, it’s corporations using algorithms to find out what times of day are most profitable—when they’ll have the most foot traffic in retail, for instance—and demanding that employees work those times. It’s increasing nightwork. Nontraditional could mean 11 to 3 or it could mean working in the evening, or working in different jobs, hither and thither. That alone points to a huge transformation in things like time. A lot of the issues I address in the book are really about time, how we spend it. In the twenty-four-hour day care section I use the term the forever clock. But that’s true of the upper middle class too, they feel squeezed because they’re also on a forever clock. They’re working in IT, for instance, and they’re working unusual hours and they have the expectation that they should be better paid for it. 

AN: Your work has been focused on economic inequality for a long time.

AQ: Every single one of my books is in some way about economic inequality. I used to teach at Columbia J-school and I always told my students that every writer has a central question they spend their career trying to answer and your job is to find out what your question is. It’s like a parlor game. So I think mine is: what happens when the family—or childhood—hits capitalism? What are the deformations and the formations? I read so many nineteenth-century novels as a kid that I’m fascinated by that intersection. Naturalism is ascetically but also politically and intellectually appealing to me. I think I just like the texture of family, love, money, and how they all meet.

AN: That comes out in the writing of the book because, I’ll tell you, there are economics books that I have no interest in reading because they’re a slog, a data dump. You also coin terms that give us a way to think about worker’s plights. You just mentioned the forever clock but there’s also the middle precariat.

AQ: I was trying to explain the shift in the middle class as an imaginative category. The middle class used to equal solid, fixed, stable. Temporally it was about gratification later, but your life wasn’t miserable while you were waiting for it. It wasn’t like OK, total slog, but you’re going to get that pension. We have to now think of it as a shaken category, an unstable category, and that’s a big shift. When we visualize the middle class, we’re visualizing the white picket fence, like the blue sky on the cover of the book. But it’s really this truck being squeezed between two houses.

It’s an unsettled identity, and you can fall out of it, you can barely get into it, you certainly can’t rise above it very easily. Guy Standing coined the term precariat in 2011 to describe the proletariat, which is a Marxist way of understanding the working class, crossed with precariousness. And people get that. Every time they ride an Uber or they have a gig economy Task Rabbit person come to their house they’re like, OK, that’s the precariat. But I was seeing the same thing among paralegals or those who have law degrees but were still doing temporary work.

AN: Getting a law degree can be like selling your soul to the banks.

AQ: All these people are in debt. Some of it is because they went to for-profit colleges and those colleges were really expensive and they didn’t have a good rate of placement. Which can be traced to for-profit colleges and grad schools that have very little oversight—and are sometimes indeed federally funded. It can also be traced to fewer law jobs overall and too many people imagining that law is a secure profession. This is about reimagining. Once you can reimagine a profession, even if you choose to do it—you choose to be a journalist, you choose be a lawyer—we should understand that we’re choosing something unstable. Awareness is a huge part of survival and I guess part of what I want with this book is to increase awareness. This is your self-help: Don’t blame yourself. We have to come alive to this recognition. You can still do what you love, so long as you know what it can mean.

This is a personal journey for me too. When I was younger, as a freelancer, I had some recognition that journalism was starting to fragment. It was around 2006 or 2007—but it was before that too, the’90s. The word rates used to be consistent and for freelance writers those rates became lower or stayed the same while inflation rose. I remember talking to someone and they said, “just think about us as post modern.” Now you do lots of things, it’s a hustle here and a hustle there. That person was a boomer who had a steady job, who would get social security. I remember feeling an incredible resentment.

AN: So precarious employment has been described to us as a beautiful thing. We’re not chained to a factory job, we get to think and move around, but it doesn’t pan out.

AQ: I personally came from a middle class background. As I describe in the book, my parents were college professors, originally community college professors, and they could afford to send me to a private school. They didn’t have any inheritance or anything. That’s the sort of the world I thought I’d be living in. All of us, our generation, Generation X, had an idea of the world we thought we’d be living in. The generation after us has come to understand some of these things.

AN: That they’re fucked? So do you think this is a moment in capitalism, as we watch continued market decline over the next years, when we either do something about it or devolve into a disordered society?

AQ: Yes, I think so. But this book isn’t depressing because it points to some solutions—not in a pat way, but things that will work. It’s a way to think about what kind of family safety net, federal and local, we need to make sure people aren’t falling through. For instance, a few of the people I write about in the book are on food stamps and other kinds of support, but many of them are a little above that in terms of earning power and they can’t get help. There’s a labor organizer I spoke with who tries to lower her salary to be able to get some sort of subsidized day care, some sort of health insurance program. It’s that edge: people who are middle class in terms of education, but working class in terms of earning. They’re on the edge of being working poor and not being able to access any of those services. That’s most of the people in this book. Once we understand that they’re precarious we need to find a safety net for them.

AN: What this book does is lay out the many ways that people are hurting at the moment and it kind of gives a blueprint as to how precariousness could be addressed. Subsidized day care, for instance. I had no idea about how expensive child care is.

AQ: Child care can be 30 percent of many salaries. Or more. I think for us it was 30 percent of our take-home pay.

AN: How do people do it? In the book you show us. We spend a lot of time with individuals, we get a look at their lives and there’s a revelation for a reader to think, Oh, it’s not just me. There are things that I go without, there are resources that I don’t have access to, there are crises that I lose sleep over or pray will never come my way. There’s something about this book that brings this issue to light and I wonder if that was what you thought you’d get out of the stories? Is that why you used a storytelling approach?

AQ: That’s the chick lit, soap operatic part of me. And there is something of that in these stories. You think, What’s going to happen next? Sometimes I was surprised because they did have the messy amplitude of ordinary life. The people I write about aren’t just symbolic though. Some of them I followed for years.

AN: I think of the co-parenting section where you spend time with families who are trying to come up with creative solutions. In some cases, over time, things were better; in some cases they were worse. But readers still get the sense that nothing is fixed, no one really knows what’s working.

AQ: Or like the nanny who was separated from her son when I first met her and it was one kind of story. It became a story about them reunited, but then it became a story about school choice, and then it became a story about a mixed outcome at the end. She was actually happy, but I think the reader would want her to have a more middle class life given how hard she’s worked and all the effort she’s made to make the right choices.

AN: The anxiety of her life stayed with me. There are so many things that thwart her from getting ahead. She just needs the smallest break, trying to bring her son here, trying to find an affordable place to live. She’s doing everything right and she doesn’t deserve to go through this. That’s what comes out in the story. So when you were doing this reporting, did you get a sense of relief that we’re all going through this at the same time?

AQ: I definitely did. I felt relief. I say that this book is self-help because it makes you realize that it’s not your fault. And that’s how I see self-help. I see it as awareness, really granularly understanding all the ways that systems have made it impossible for you personally to overcome financial challenges—so that you’re no longer blaming yourself.

AN: Thank God someone’s redefining self-help.

AQ: [Laughs] But that’s it. How do you not feel stigmatized, how do you not feel isolated? So many of my friends feel ashamed that they can’t figure out the school system, can’t figure out how to own their home.

AN: The various penalties—for being a woman, for having children, for having debt—stack up. Shaming has abetted this erosion of rights and financial stability.

AQ: Time, day care scheduling, and other demands mean people can’t organize. They’re ashamed of where they are and so that becomes another debilitating factor. The adjunct in one chapter feels ashamed even though she knows politically she shouldn’t. There are people like the teachers who drive for Uber, who feel ashamed even though they know they shouldn’t. And it goes on and on. I don’t want to put it back on individuals, but the personal thing that people can do is start talking openly about their monetary situation. People are startled when you do that. It can erode social norms in a weird way, but I also think it’s important that people stop fronting with one another.

I write in one chapter about the 1 percent media, about the social media where people pretend to live in more expensive places than they do. I call them wealthies, not selfies. So it’s not your imagination when you’re in any of these circumstances and you see people in a sun dappled villa. People are representing themselves in this inflated way and then you feel terrible and isolated. There are so many ways in which the stigma, the isolation, around your class position gets underlined.

AN: Has it always been shameful to be poor?

AQ: Probably.

AN: It’s not a fair question!

AQ: But let’s be clear. A lot of these people are not poor. Most of the people in this book are earning between $45,000 and $125,000. Working class is $35,000. They’re not at the poverty level.

AN: So the shame then comes from not being able to make ends meet.

AQ: The shame comes from having debt for the education that you got in order to be middle class. The shame comes from not doing as well as your peers. The shame comes from not living up to your potential. The shame comes from not owning your home, defaulting on your mortgage. Not giving your kids as good a life as you had. I’m not writing about the working poor. I’m writing about the middle poor.

AN: We still operate under the myth that as a society we can continue to lift people into middle class and lift middle class into other class brackets. We no longer have any of that upward mobility. We cannot anticipate that our children will be better off.

AQ: No, we cannot anticipate that.

AN: But that’s still the American dream, isn’t it? And that American dream has been tied to, say, home ownership or a vehicle or not having debt.

AQ: In New York it’s like what school your kid goes to. What college your kid goes to.

AN: You use the word reimagining; it’s a word that I don’t hear often enough in politics, particularly not applied to class.

AQ: I mean reimagining what it means to be successful, reimagining what it means to be middle class. In a dream scape kind of way, like, This is what we would like to see in this country. But also reimagining middle class in its truth, what it actually means now? Let’s tear the veil and not just say, Oh, it means stability or security. It doesn’t.

Multi-Billion Dollar Giveaway to Amazon

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By Stephen Lendman

Source: StephanLendman.org

Seattle-based Amazon is like corporate predator Walmart, exploiting communities, along with harming local businesses and workers for maximum productivity and profits.

The company’s $100 billion dollar CEO Jeff Bezos didn’t get super-rich by being worker and community friendly – just the opposite, the way all Western corporate giants operate and most others, power, profits, and crushing competition their priorities.

That’s what predatory capitalism is all about – benefitting from harmful practices, polar opposite the way many, maybe most, locally owned and run small enterprises.

A London Guardian investigation revealed “numerous cases of Amazon workers being treated in ways that leave them homeless, unable to work or bereft of income after workplace accidents.”

One worker’s experience is similar to countless others, saying Amazon “cost me my home. They screwed me over and over, and I go days without eating.”

This “case is one of numerous reports from Amazon workers of being improperly treated after an avoidable work injury,” the Guardian explained, adding:

“Amazon’s warehouses were listed on the National Council for Occupational Safety and Health’s ‘dirty dozen’ list of most dangerous places to work in the United States in April 2018.”

“The company made the list due to its pattern of unsafe working conditions and its focus on productivity and efficiency over the safety and livelihood of its employees.”

“Amazon’s emphasis on fulfilling a high demand of orders has resulted in unsafe working conditions for its warehouse employees.”

Numerous workers “succumb to the fatigue and exhaustion of the fulfillment center work environment and quit before getting injured.”

The company lied claiming it prioritizes worker safety, expressing “pr(ide)” in its shameful record, causing enormous harm to countless numbers of workers at its fulfillment centers.

On November 13, Amazon announced two new headquarters locations, besides its current Seattle one.

Additional ones will be in suburban Washington’s Arlington, Virginia’s Crystal City and Queens, NY Long Island City.

An astonishing 238 US cities competed for what the company calls its HQ2. In January, 20 finalists were chosen for its second headquarters –  19 in America, Toronto the only one abroad.

Up for grabs is about 50,000 promised jobs and around a $5 billion investment. Whenever a corporate headquarters is sought,  cities and regions compete by offering companies huge tax breaks and other benefits – at the expense of small local businesses and cuts in public services.

For ordinary people, having major operations like Amazon, Walmart, and other corporate predators in communities is more of a curse than benefit.

Economics Professor Edward Glaeser said the downside of competition for companies like Amazon is it “become(s) a contest for throwing cash at the giant(s).”

The same thing goes on when professional sports teams consider moving to a new city, or the International Federation Association Football (FIFA) World Cup and International Olympic Committee (IOC) select locations for future events.

New stadiums become fields of schemes, not dreams, ordinary people in chosen areas harmed so super-wealthy ones can benefit hugely.

New York City won the bidding for one of two Amazon HQ2 locations by throwing $2.1 in tax incentives at the company – money badly needed for public education, affordable housing, and other vital public services lost to benefit Amazon.

The company’s move to NYC will cost area taxpayers around $61,000 for each of 25,000 promised jobs – double the per capita $32,000 for Virginia residents for the same number of promised jobs, according to Bloomberg, adding:

Amazon’s presence in these cities will likely “exacerbate the already fragile public transportation system and clogged roadways, and raise housing prices.”

Arlington, VA won its bid by offering Amazon $573 million in tax breaks and other benefits.

Locating one of two HQ2 locations there is related to the company’s pursuit of a $10 billion Defense Department cloud-computing contract it’s the front-runner to get.

In summer 2014, it got a $600 million Amazon Web Services cloud-computing contract for the CIA, linking the company and its Washington Post subsidiary to Langley, the broadsheet serving as its mouthpiece.

Bezos has a disturbing history currying favor with national security officials. Winning a major Defense Department contract will assure the company serves its interests along with the US intelligence community’s – at the expense of world peace, stability, and rights of ordinary people everywhere.

City officials betray their residents by throwing enormous amounts of money at deep-pocketed corporate giants to lure them to their areas – well able to defray the cost of expansion and conducting business operations without government handouts.

Yet it’s been the American way for time immemorial – Washington, states and cities financing enterprises from the earliest days of the republic.

The more concentrated business gets, the more power companies have over government – doing their bidding at the expense of ordinary people nationwide.

Amazon’s HQ2 is one of countless other examples of the same dirty business – getting enormous amounts of public money diverted from the general welfare.