Tag Archives: income gap

A 2% Financial Wealth Tax Would Provide A $12,000 Annual Stipend To Every American Household

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Careful analysis reveals a number of excellent arguments for the implementation of a Universal Basic Income.

By Paul Buchheit

Source: Nation of Change

It’s not hard to envision the benefits in work opportunities, stress reduction, child care, entrepreneurial activity, and artistic pursuits for American households with an extra $1,000 per month. It’s also very easy to justify a financial wealth tax, given that the dramatic stock market surge in recent years is largely due to an unprecedented degree of technological and financial productivity that derives from the work efforts and taxes of ALL Americans. A 2% annual tax on financial wealth is a small price to pay for the great fortunes bestowed on the most fortunate Americans.

The REASONS? Careful analysis reveals a number of excellent arguments for the implementation of a Universal Basic Income (UBI).

(1) Our Jobs are Disappearing

A 2013 Oxford study determined that nearly HALF of American jobs are at risk of being replaced by computers, AI, and robots. Society simply can’t keep up with technology. As for the skeptics who cite the Industrial Revolution and its job-enhancing aftermath (which actually took 60 years to develop), the McKinsey Global Institute says that society is being transformed at a pace “ten times faster and at 300 times the scale” of the radical changes of two hundred years ago.

(2) Half of America is Stressed Out or Sick

Half of Americans are in or near poverty, unable to meet emergency expenses, living from paycheck to paycheck, and getting physically and emotionally ill because of it. Numerous UBI experiments have led to increased well-being for their participants. A guaranteed income reduces the debilitating effects of inequality. As one recipient put it, “It takes me out of depression…I feel more sociable.”

(3) Children Need Our Help

This could be the best reason for monthly household stipends. Parents, especially mothers, are unable to work outside the home because of the all-important need to care for their children. Because we currently lack a UBI, more and more children are facing hunger and health problems and educational disadvantages.

(4) We Need More Entrepreneurs

A sudden influx of $12,000 per year for 126 million households will greatly stimulate the economy, potentially allowing millions of Americans to TAKE RISKS that could lead to new forms of innovation and productivity.

Perhaps most significantly, a guaranteed income could relieve some of the pressure on our newest generation of young adults, who are deep in debt, underemployed, increasingly unable to live on their own, and ill-positioned to take the entrepreneurial chances that are needed to spur innovative business growth. No other group of Americans could make more productive use of an immediate boost in income.

(5) We Need the Arts & Sciences

A recent Gallup poll found that nearly 70% of workers don’t feel ‘engaged’ (enthusiastic and committed) in their jobs. The work chosen by UBI recipients could unleash artistic talents and creative impulses that have been suppressed by personal financial concerns, leading, very possibly, to a repeat of the 1930s, when the Works Progress Administration hired thousands of artists and actors and musicians to help sustain the cultural needs of the nation.

Arguments against

The usual uninformed and condescending opposing argument is that UBI recipients will waste the money, spending it on alcohol and drugs and other ‘temptation’ goods. Not true. Studies from the World Bank and the Brooks World Poverty Institute found that money going to poor families is used primarily for essential needs, and that the recipients experience greater physical and mental well-being as a result of their increased incomes. Other arguments against the workability of the UBI are countered by the many successful experiments conducted in the present and recent past: Finland, Canada, Netherlands, Kenya, India, Great Britain, Uganda, Namibia, and in the U.S. in Alaska and California.

How to pay for it

Largely because of the stock market, U.S. financial wealth has surged to $77 trillion, with the richest 10% owning over three-quarters of it. Just a 2 percent tax on total financial wealth would generate enough revenue to provide a $12,000 annual stipend to every American household (including those of the richest families).

It’s easy to justify a wealth tax. Over half of all basic research is paid for by our tax dollars. All the technology in our phones and computers started with government research and funding. Pharmaceutical companies wouldn’t exist without decades of support from the National Institutes of Health. Yet the tech and pharmaceutical companies claim patents on the products paid for and developed by the American people.

The collection of a wealth tax would not be simple, since only about half of U.S. financial wealth is held directly in equities and liquid assets (Table 5-2). But it’s doable. As Thomas Piketty notes, “A progressive tax on net wealth is better than a progressive tax on consumption because first, net wealth is better defined for very wealthy individuals..”

And certainly a financial industry that knows how to package worthless loans into A-rated mortgage-backed securities should be able to figure out how to tax the investment companies that manage the rest of our ever-increasing national wealth.

 

“If poor people knew how rich rich people are, there would be riots in the streets”

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By Staff, Anticap.wordpress.com

Source: Popular Resistance

Chris Rock may be right. Still, Americans are well aware that economic inequality in their country is obscene, even though they often underestimate the growing gap between the poor and the rich.

But it’s Frank Rich, who conducted the interview with the American comedian, who made the more perceptive observation:

For all the current conversation about income inequality, class is still sort of the elephant in the room.

All the experts agree—from Thomas Piketty and the other members of the World Inequality Lab team to John C. Weicher of the conservative Hudson Institute—that inequality in the United States, especially the unequal distribution of wealth, has been worsening for decades now. Both before and after the crash of 2007-08. And there’s no sign that things are going to get better anytime soon, unless radical changes are made.

But, as it turns out, even the experts underestimate the degree of inequality in the United States. The usual numbers that are produced and disseminated indicate that, in 2014 (the last year for which data are available), the top 1 percent of Americans owned one third (35 percent) of total household wealth while the bottom 90 percent had less than half (45.3 percent) of the wealth.

According to my calculations, illustrated in the chart at the top of the post, the situation in the United States is much worse. In 2014, the top 1 percent (red line) owned almost two thirds of the financial or business wealth, while the bottom 90 percent (blue line) had only six percent. That represents an enormous change from the already-unequal situation in 1978, when the shares were much closer (28.6 percent for the top 1 percent and 23.2 percent for the bottom 90 percent).

Why the large difference between my numbers and theirs? It all depends on how wealth is defined. Both the World Inequality Lab and the Federal Reserve (in the Survey of Consumer Finances) include housing and retirement pensions in household wealth—and those two categories comprise most of the so-called wealth of most Americans. They just don’t own much in the way of financial or business wealth. They live in their houses and they retire based on contributions from their wages and salaries over the course of their work lives. They produce but don’t take home any of the surplus; therefore, they just don’t have the ability to amass any real wealth.

For the small group at the top, things are quite different. They do get a cut of the surplus, which they use, not only to purchase housing and put aside in their pensions, but to accumulate real wealth, for themselves and their families. If we take out housing and pensions and calculate just the shares of financial or business wealth—and, thus, equities, fixed-income claims, and business assets—the degree of inequality is much, much worse.

Yes, rich people in the United States are very rich—even more than either regular Americans or the experts believe.

But that’s not the real elephant in the room. The big issue that everyone is aware of, but nobody wants to talk about, is class. And that’s the reason there should be, if not riots, at least a sustained political movement to transform the existing economic and social structures in the United States.

Time To Make Life Hard For The Rich

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By Hamilton Nolan

Source: Splinter

It is time for polite, respectable, rational people to start saying what has become painfully obvious: It is time to stop respecting the rich, and start stealing from them. In earnest.

Inequality is eating America alive. It has been growing for decades. To say that “the American dream is dead” is no longer a poetic exaggeration—it is an accurate description of 40 years of wage stagnation and declining economic mobility that has produced a generation that cannot expect to live better than their parents did. Not because of devastating war or plague, but because of a very specific set of rules governing a very specific economic system that encourages the accumulation of great wealth among a tiny portion of the population, to the detriment of the vast majority of people. Our political and business leaders have chosen to embrace a system that favors capital over labor. A system in which the more you already have, the more you make, and the less you have, the harder it is to build wealth. It is a system designed to increase inequality. It is functioning exactly as designed. And now, it is about to get worse.

How long are people supposed to tolerate being smacked in the face? By the rich? Who already have more than enough? It is not as though the fact that inequality is a crisis is a fact that snuck up on anyone. Economists have seen the trend for decades, and the general public has been well aware of it since at least the financial crisis. Obama called it “the defining challenge of our time.” Thomas Piketty became a rock star by writing a very dry book about it. It’s not an underground thing. It is well known and well understood by the people in control of the institutions with the power to change it. The response to this dire situation by the Republican Party, which a wholly owned subsidiary of the American capital-holding class, has been to pass a tax bill that will horribly exacerbate economic inequality in this country. It is a considered decision to make a bad situation worse. It is a deliberate choice—during a time when the rich already have too much—to take from the poor in order to give the rich (including members of Congress and the President) more. That is not a metaphor. That is the reality. That is what the Republican party is about to accomplish on behalf of the donor class, calling it “middle class tax relief” in the face of mathematical proof to the contrary. Even to my cynical ass, the sheer fuck you-ness of this action towards the majority of the country is breathtaking. This is not just a failure to solve a severe problem; it is the expenditure of vast amounts of political capital to make the severe problem worse so that a tiny handful of people will get wealthier than anyone needs to be.

Ideally, in a democracy, elected leaders reflecting the interests of the people would pass taxes and regulations to reverse the growing inequality here. For that to happen, we would need to end gerrymandering and reform campaign finance and probably abolish the Senate and the Electoral College, and that’s just for starters. It is not imminent, in other words. Our broken political system, which is designed to reward money with political power, is actually moving in the opposite direction of a solution. Who is suffering because of this? Most Americans. Certainly the bottom 50% are acutely suffering—money that would have been in their paychecks has been instead funneled upwards into the pockets of the rich. Every desperate family that has found themselves coming up short for rent or food or medicine, every American who has downgraded her dreams and aspirations because they became financially implausible, has been directly harmed by the political and economic class war perpetuated by the rich, even if they cannot see the perpetrators with their own eyes. I think that people have been more than patient in the face of this slow-moving crisis. In 2009, when the markets crashed and millions were laid off, nobody rioted and kidnapped the financiers and burned their homes. The outcome of that lack of direct action is the situation we find ourselves in today.

Violence against people is morally wrong and a bad way to solve problems. But capital is different. One thing that would help to create the political environment conducive to solving the inequality problem would be to make the cost of accumulating all that capital too high to be worth it. In other words, to create a downside to being too rich. I have personally stood in a room full of hedge fund titans and billionaire investors warning one another explicitly that inequality must be addressed lest the U.S. become a place like Latin America, where rich people are forced to live behind walls, surrounded by armed guards, because of the very real risks from the rage of the poor. Rich people in this country do not want to live like that. If they see that they must stop being so greedy in order to enjoy their own freedom, they will stop being so greedy. Those conditions have to be created by people who want justice.

Our situation is absurd. Not since the Gilded Age has it been more clear that a few people have too much. Furthermore, the people with too much are investing in political clout to give themselves more. It’s just wrong. If the government won’t help, we have to help ourselves. Sticking up a billionaire on the street for $100 is not going to do it. But one can imagine other ways that angry Americans might express their dissatisfaction with our current division of wealth: A large-scale online attack against the holdings of the very rich; yachts sunk in harbors; unoccupied vacation homes in the Hamptons mysteriously burned to the ground. Sotheby’s auctions swarmed by vandals, Art Basel attacked by spraypaint-wielding mobs, protests on the doorsteps of right-wing think tanks, venomous words directed at millionaires as they dine in fancy restaurants. People have a right to life and safety, but property does not. A life spent screwing the little people so that you can acquire lots of stuff loses its allure when you know that all that stuff will be smashed to pieces by angry little people. It is not hard to put together a list of those who should be targeted—Forbes publishes it every year. Likewise, public campaign finance records give us a pretty good idea of exactly who is funding the politicians who are perpetuating this economic war on behalf of the rich.

It is nice to imagine a grand, well-targeted computer hack that would neatly transfer billions of dollars out of the accounts of, say, the Walton family and into a charity account that would disburse the money to the poor in untraceable ways. That seems far-fetched. Realistically, what people can do now is to start thinking about ways to make it uncomfortable to be too rich. Socially uncomfortable and otherwise. When the accumulation of great wealth ceases to be a praiseworthy endeavor and instead becomes viewed as a sick, greedy pastime whose only reward is the hatred of your fellow citizens and the inability to live comfortably without fear of your excessive property being destroyed, rich people will rethink their goals. Until then, inequality will keep rising, and everything, for most people, will continue to slowly, slowly get worse.

Slaves and Bulldozers, Plutocrats and Widgets

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By Kristine Mattis

Source: CounterPunch

There is not an industrial company on earth, not an institution of any kind – not mine, not yours, not anyone’s – that is sustainable. I stand convicted by me, myself alone, not by anyone else, as a plunderer of the earth. But not by our civilization’s definition. By our civilization’s definition, I’m a captain of industry and in the eyes of many, a kind of modern-day hero.

— Ray Anderson, (1934-2011) CEO of Interface, Inc.

We are living a collective illusion known as the civilized world. We feign concern for our horrendous conditions of poverty, socioeconomic inequality, deteriorating public health, and severe environmental degradation (to which climate change is merely one factor), but everything we do belies that distress. These issues comprise the largest risks to the survival of the human species, as well as the most significant amoral atrocities on the planet. Both individually and as a species, our health, safety, and ability the live a decent, dignified life have always been imperiled by these predicaments. Yet, we continue along with complete cognitive dissonance in that the crux of our lives – our jobs, our consumer culture – all contribute to, perpetuate, and exacerbate the unsustainable and morally reprehensible conditions of our existence. But while we are all marginally responsible for the multitude of calamities befalling us, the one group who bears the brunt of the blame for our social and ecological decay is the wealthy.

Have you looked around and seen just what humanity has done to our stunning Earth? We’ve bulldozed the beauty for bucks. Far too much of what was once a glorious paradise is now a complete disaster of unfathomable proportions. A disaster wholly of our own making. In America, and in most places around the world, from the moment we are born we are preparing for a future career, and  more specifically, for the lifelong goal of making money. But on the whole, most of the jobs we do end up being more detrimental than beneficial to society and the environment. We characterize work through measures of productivity, but producing more and more unnecessary, meaningless, and often useless products compromises our physical environment, which in turn, compromises the health of humans, other beings, and our entire planetary ecosystem.

So many of the things that form the basis of our civilization should not, and perhaps cannot, exist in a just and sustainable world. Items like arms and artillery, synthetic chemicals, concentrated animal feeding operations, plastic, smartphones and other electronic gadgetrydo not feed a sustainable and equitable world but create more needless havoc. The irony, though, is that the very people who run the systems that incessantly construct and promulgate these harmful, redundant, or unnecessary products are the richest and most successful people on earth.

We define success in our society almost exclusively in terms of wealth, with its attendant power and sometimes, fame. Rich people are the recipients of adulation and reverence for nothing more than their accumulation of wealth and material products. We like to think that riches come by way of great intellect, talent, skill, and a strong work ethic, but in reality, monetary success is more a matter of inherited socioeconomic status, ambition, and determination, rather than ability and aptitude. Most of all, to achieve wealth means to have a myopic resolve, not only to look away from how the sausage is made, but to not care how the sausage is made.

The wealthy in our society then become the people with the most power and influence. While ironically, they are the people least deserving of our respect. They are the exact people whom we should look upon with the utmost skepticism and even disdain. They should not be in the position to make decisions about our collective lives and the workings of our society, because their financial success is completely antithetical to societal justice and sustainability.

It doesn’t take great acumen or diligence to make a lot of money; it takes a narrow-minded, insular, immoral, sometimes psychopathic view of life, in which personal pleasure and profit are the primary variables. It’s quite easy to do well financially and find personal satisfaction if the exploitation of humans, other animals, and the entire biosphere is left outside of the realm of your career consciousness. As Ray Anderson, CEO of Interface Carpet admitted,“For 21 yearsI never gave a thought to what we were taking from the earth or doing to the earth in the making of our products.” He built his fortune without consideration to the effects of his enterprise until someone brought the deleterious consequences to his attention.

We like to believe the cream rises to the top, but the truth is that the top is actually full of scum. We have seen in recent weeks, if we did not know already, that entertainment, politics, and indeed, all of the wealthiest industries are cesspools of moral depravity, especially at the apex.

There may be some exceptions, but scum is the rule. Some might call these people ambitious, some might call them razor-focused, others would call them sociopathic. It takes a careful regimen of willful  ignorance and/or denial to not consider all the harms that directly and indirectly result from avenues toward career achievements in the process of our normal lives – harms such as exploitation of labor, torture of animals, and toxic contamination and of food, water, and natural resources.

Material success requires rape and pillage, figuratively and literally. Donald Trump bragged that when you have the kind of wealth he has, you can treat women as objects and just “grab ’em by the pussy.” You can also exploit resources, exploit labor, befoul the environment, and endanger public health with few or no consequences. On a purely moral basis, only scum could have the hubris to consider others as mere playthings for their own enjoyment, to feel superior enough to warrant their extreme wealth which they did not earn but stole from the commons, and to believe that they deserve obscene riches when the majority of others do not even have basic life necessities.

How often have you heard the phrases “not that there is anything wrong with being rich,” or “I don’t begrudge him his wealth”? Wealth should be considered reprehensible. Wealth has always been in the hands of the few to the detriment of the many, and one’s access to it has always been almost wholly correlated with one’s socioeconomic status at birth. Yet we rationalize this immoral situation and pretend that the proverbial “pie,” of which we all need a slice, is infinite in size and that wealth is accessible to anyone. We assume that being rich is not only acceptable but aspirational. It is neither in a just and sustainable world.

On a finite planet every excess dollar, every excess material good, every extra home, car, garment, trinket, piece of food, or beverage that one person possesses essentially correlates to an item that another person does not have. When we normalize one person having more than he/she needs in a world where billions have far less than the bare minimum required to meet their basic needs, then we are obliged to rethink our morality. When a simple handbag can cost between $12K and $300K and we as a society see nothing wrong with that kind of excess in the face of poverty, hunger, homelessness, and disease, we are not only completely socially corrupt, we are spelling our own doom. Poverty only exists because excessive wealth exists and neither is compatible with a sustainable and humane civilization.

To achieve a sustainable world, we must relinquish our use of non-renewable resources, we must utilize renewable resources at a level in which they have the time and ability to replenish, and we must leave no waste that is not regenerative. To achieve an equitable world, we must relinquish our greed and desire for opulence, excess, and disproportionate influence. In fact, sustainability is also a function of equity. However, our current society is predicated on the antithesis of all such requirements.

Wealthy people gain their successes because they have tunnel vision. They are singularly focused on themselves, their careers, and/or on money. They do not take into consideration the externalities involved in their actions. They pay little mind to the exploitation involved in their pursuits. Ethics never supersedes ambition. Therefore, these are the exact people who should not be in charge of making policies for the benefit of society and should not be in charge of civic ventures. To be able to be so wealthy without shame, guilt, or acknowledgement that your own wealth impedes the lives of others is to be either ignorant or indifferent. We are facing global ecological and economic collapse. Who made this happen? The wealthiest people of the world. If you are rich you do not have the solution. You are the problem.

The world is run on slave labor, indentured servitude, animal and natural resource exploitation, and endless generation of waste and contamination. Material success comes with adopting a shortsighted view of the world – closing yourself off to your own connection to global anthropogenic climate change, toxification, and inequality.

So many of the wealthy who consider themselves socially and environmentally aware perceive no connection between their own wealth accumulation and the causes they claim to champion. Instead of curtailing their materialism, they rationalize it. Instead of acknowledging that their consumerism intensifies global resource extraction, they produce more products (often erroneously labeled “green”) to sustain their riches. When the wealthy are not hawking products for their for-profit activities, they have the audacity to solicit for charitable organizations that are only necessitated by the economic system that produces poverty and environmental devastation in the wake of their extravagant wealth. They ask donations from the majority of citizens who are barely making ends meet, when they themselves could surrender probably 90% of their accumulated wealth and not notice a marked change in their material status whatsoever. The elites who are not in denial about the problems we face want scientific and technological solutions – solutions that they can throw their money at and have others solve so they do not have to think about their own contribution to the problems.

But there are no silver bullets to end inequality and environmental destruction, while continuing with business as usual in civilized society. Science cannot save us. Scientific research itself relies on the same unsustainable production, consumption, use of resources, and waste as every other industry.

Technology mavens always tout the great social or biological service that their new technology will provide. Their innovations comes under the guise of helping the world, but the majority of the time, their creations are frivolous and do not do much more than use natural resources, create waste, and earn them exorbitant profit. At the university where I earned my doctoral degree there is a masters program in biotechnology and there’s a reason why their curriculum extends beyond just science, containing at least two required business courses. Of course, business is fundamental to their instruction because the principle purpose of our education, of our careers, is profit.

All of the harmful products and practices in our civilization – military arms, sweatshops, low wages, pesticides, plastics, throw-away items, excess of products, animal cruelty, overuse of medicine and surgery – only exist to increase revenue for the rich. None are fair or just or equitable or sustainable. Our societal justification of the above items just marks our collective delusion. These products and practices persist in the name of profit, and we rationalize their continuation just as we rationalize extravagant wealth.

When Senator Bernie Sanders was on TV decrying President Barack Obama’s half-million dollar speaking engagements on Wall Street, the anchors of the program said to him, “Wouldn’t you do it if you could?” Bernie replied, “I wouldn’t be asked.” Rather, he should have explained that anyone with integrity would not accept money they do not need for some sort of quid pro quo from a destructive and corrupt institution. The hosts of the show surmised that everyone would jump at the opportunity to earn money if they had the chance. It is precisely that sort of mindset that enables these broadcasters to inhabit their influential positions on a national television program and to earn millions of dollars. They demonstrate what unethical opportunists they, and most of the rich, actually are. Their lack of ethics is internalized and taken for granted by not only them, but most of the rest of our society. They are more than willing to be bought at whatever price for whatever service. “Just doing my job” does not serve as an excuse for immorality.

Nevertheless, there are people who have chosen lives based on conviction rather than money. Former Uruguayan President Jose Mujica and Seattle City Council member Kashama Sawant chose to earn the local average income for their official positions and donate the remainder of their salaries toward social justice work. Biologist and writer Sandra Steingraber donated a portion of her $100K Heinz Award prize toward the fight against hydraulic fracturing (fracking) rather than spend it on personal treats. Likewise, teacher Jesse Hagopian donated his $100K settlement for being unjustly attacked with pepper-spray by Seattle police toward social justice action. Not everyone is looking to cash in, and not everyone is seeking the next, biggest profit-making endeavor.

Living with integrity and simplicity is difficult. People do not choose to live this way because their personal sacrifice will change the world. They do so because it is the right thing to do. They do so because having too much means others don’t have enough. They do so because living by example allows others who care to see that a life of wealth and consumerism augments inequality and unsustainability; it is not the only way to live and need not be. They live this way because only by walking the walk rather than talking the talk will we ever start to achieve justice and sustainability to help preserve the future of our species.

In recent years there have been waves and wave of protests throughout the country and the world in response to myriad societal maladies. The best protest we can do in America now is to reject the bourgeois life – reject excessive wealth and the material components that come with it, reject profligate consumption, reject consumerism, reject wasteful holidays, reject wasteful trinkets,  reject all that is incompatible with what we purport to champion. For example, retired talk-show host David Letterman appears sincere in his dedication toward helping combat climate change, while at the same time, he remains co-owner of an auto racing team. In the world in which we currently live, auto racing is completely incongruent with climate change mitigation. We can’t pretend to value matters like justice and sustainability unless the way we live upholds those values. We can’t decouple our livelihoods from our lives.

The rich tend to ensconce themselves in their well-manicured communities, shop with abandon, and disregard the abject poverty, environmental degradation, and injustices all around them. They are in the process of spending small portions of their vast fortunes building survival bunkers to withstand either the revolutionary upheaval that may soon come as a result of immeasurable socioeconomic inequality, or the catastrophic ecological collapse that may result from reckless resource extraction and expenditure. How misguided or cynical are they to not realize that by renouncing their extreme wealth, they would need no such provisions and could play a large part in salvaging our civilization?

Need I even explain how the current tax scam pending on Capitol Hill will serve to enhance all of the socioeconomic, environmental, and public health calamities that are arising ever more rapidly and in quick succession? Need I elaborate on how our escalating climate-related weather catastrophes only reach the cataclysmic proportions they do because of the wealth disparities involved and because of the high-risk industrial components therein, that exist mainly to enrich the elite? Would these natural disasters be so disastrous if more people had the economic resilience that they deserve and if society took more precaution against the hazards of multibillion-dollar industries that manufacture products of questionable value while generating tremendous wealth to a select few?

We live n a time of unprecedented social disarray, ecological disrepair, public health decay, and moral depravity. Nearly every aspect of the way we live in modern industrial societies is completely unsustainable. Even if we were to transition to 100% solar energy tomorrow throughout the planet, the worst effects of climate change might be averted, but the plastic pollution that permeates the most far-reaching depths of the oceans would still remain, the persistent organic pollutants (POPs) and endocrine disrupting compounds (EDCs) that harm our own health and the health of the entire global ecosystem remain. Not only do they remain, but they continue to be produced, not out of necessity, but for the financial profit of the privileged few. The production of, consumption of, and waste stream from our global industrial society continues unabated. This is the system that forms the foundation of all of our lives in the civilized world, and this is the system that bestows excessive wealth to some while leaving others fighting for survival.

While it is indeed the system of capitalism that generates and sustains our societal injustice and ecological degradation, the system is comprised of people – people who could abdicate their fictional obligation to happiness via indefinitely-increasing earnings, people who can choose better, Without a preponderance of such people, no countervailing just and sustainable system can ever compete.

In 1964, Uruguayan journalist Eduardo Galeano interviewed the famous Argentinean hero of the Cuban revolution Ernesto “Che” Guevara. In the midst of a comprehensive conversation, Che stated to Galeano, ” I don’t want every Cuban to wish he were a Rockefeller.” To be sure, if we are remotely interested in a sustainable and equitable world, the attainment of wealth must be transformed from admirable to contemptible. With regard to the multitude of obstacles we face, Ralph Nader once wrote “only the super-rich can save us.” He’s right. They can save us by not existing.

Human Anxiety in Late-Stage Capitalism

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By Phil Rockstroh

Source: Consortium News

A number of recent press articles, including an over 8,000-word feature piece in The New York Times have asked, to quote the Times’ headline, “Why Are More American Teenagers Than Ever Suffering From Severe Anxiety?”

Although the question was proffered, the reporters and editors responsible for the articles remain resolutely obtuse to the obvious: The bughouse crazy environment of late-stage capitalist culture evokes classic fight-or-flight responses attendant to episodes of severe anxiety and panic attacks.

The word panic has its derivation in reference to Pan, the Greek god of wilderness and wildness, of the animal body encoded within human beings and its attendant animalistic imperatives. To wit, deracinate an animal from its natural habitat and it will evince, on an instinctual basis, a fight-or-flight response.

If caged, the unfortunate creature will pace the confines of its imprisonment, chew and tear at its fur and flesh, become irritable, enervated, languish and even die from the deprivation of the environment it was born to inhabit. A caged animal, even if the unfortunate creature endures captivity, is not the entity nature conceived; the living being has been reduced to A Thing That Waits For Lunch.

Human beings, animals that we are, respond in a similar fashion. Experiencing anxiety is among the ways our innate animal spirits react to the capitalist cage. Inundate a teenager with the soul-defying criteria of the corporate/consumer state, with its overbearing, pre-careerist pressures, its paucity of communal eros, its demands, overt and implicit, to conform to a shallow, manic, nebulously defined yet oppressive societal order, and insist that those who cannot adapt, much less excel, are “losers” who are fated to become “basement dwellers” in their parents’ homes or, for those who lack the privilege, be cast into homelessness, then the minds of the young or old alike are apt to be inundated with feelings of angst and dread.

Worse, if teenagers are culturally conditioned to believe said feelings and responses are exclusively experienced by weaklings, parasites, and losers then their suffering might fester to the point of emotional paralysis and suicidal inclinations.

No Real Remedies

What does the capitalist state offer as remedy? Obscenely profitable, corporately manufactured and widely prescribed psychoactive medications. Treatment, which, at best, merely masks symptoms and bestows the illusion of recovery.

As R. D. Laing observed: “What we call ‘normal’ is a product of repression, denial, splitting, projection, introjection and other forms of destructive action on experience. It is radically estranged from the structure of being.”

In short, it is insanity to be expected to adapt to socially acceptable insanity. Yet we are pressured to adapt to, thus internalize odious, groupthink concepts and tenets. To cite one such groupthink example: homelessness is natural to the human condition and is a communally acceptable situation.

Closer to fact: The problem of homelessness is the result of a societal-wide perception problem — the phenomenon is the very emblem of the scrambling, twisting, dissociating, and displacing of perception that capitalist propagandists specialize in. Homelessness would be considered a relic of a barbaric past if this very simple principle was applied: Having access to permanent shelter is a human right and not a privilege.

What kind of a vile, vicious people would deny that simple proposition? Those conditioned by a lingering Puritan/Calvinist mindset to believe: Punishment for resisting the usurpation of the fleeting hours of one’s finite life must be severe. If the over-class can no longer get away with, as was once common practice in the Puritan/Calvinist tradition, public floggings to whip the labor force into line, then those who will not or cannot comply will be cast onto the cold, unforgiving concrete of a soulless cityscape.

It comes down to this, societies that are ridden with vast wealth inequity, due to the machinations of a rapacious over-class, create the obscenity known as homelessness. Moreover, the situation is only one of the numerous obscenities inherent to state capitalism. Obscenities that include, events that are dominating the present news cycle, e.g., the predations of a lecherous movie mogul, to the sub-cretinous doings and pronouncements of a Chief of State who is a bloated, bloviating, two-legged toxic waste dump.

Trump, No Aberration 

How is it then, liberals fail to grasp the fact that the Trump presidency is not an aberration; rather, his ascension to power should be regarded as being among the high probability variables of late-stage capitalism and empire building? The psychopathic, tangerine-tinged clown Trump is the embodiment of the Second Law of Thermodynamics, a development that is concomitant to over-expanded empires. Thus he will continue to flounce deeper into the quagmire of crash-engendering, economic legerdemain and perpetual war.

Empires are death cults, and death cults, on a subliminal basis, long for their own demise. Paradoxically, the collective mindset of imperium, even as it thrusts across the expanse of the world, renders itself insular, cut off from culturally enhancing novelty, as all the while, the homeland descends into a psychical swamp of churning madness.

A draining of the swamp of the collective mind cannot come to pass, for the swamp and citizenry are one. Withal, the likes of leaders such as Trump rise from and are made manifest by the morass of the culture itself. In a swamp, the gospel of rebirth and redemption is heard in the song of humus. New life rises from its compost.

In the presence of Trump’s debased mind and tombified carcass, one is privy to arias of rot. While Hillary Clinton’s monotonous tempo was the dirge of a taxidermist — cold, desiccated of heart, and devoid of life’s numinous spark — Trump’s voice carries the depraved cacophony of a Célinean fool’s parade … its trajectory trudging towards the end of empire.

As liberals new BFFL (Best Friend for Life) George W. Bush might ask, “Is our liberals learning.”

In a word, no. For example, the collective psyche of U.S. culture as been enflamed by the revelations that actresses were coerced into sexual encounters with a movie mogul whose power in the industry was only matched, even enhanced, by his sadistic nature. The staff of his company assisted, was complicit in, or remained silent about his lechery, as did the whole of the movie industry and the entertainment press. All as NFL athletes are being threatened with expulsion from the League if they kneel during the national anthem.

The Great Unspoken 

Yet the great unspoken remains: The enabling of and submission to the degradation, exploitation and tyranny, and the lack of resistance thereof share a common and singular factor: The careerism of all concerned. The cultural milieu concomitant to capitalism is at the rotten root and noxious blossoming of the situation.

Jean-Luc Godard’s 1967 cinematic barnburner “Two or Three Things I Know About Her” should be required viewing for those unaware or in denial of the acuity of the film’s theme i.e., becoming enmeshed within the psychical landscape of dominance, degradation, and submission inherent to and inseparable from capitalist/consumer culture will cause one to become party to societal sanctioned prostitution. When life is negotiated within a collective value system that devalues and deadens the individual’s inner life thus warps every human transaction, anomie descends, the worst among a people ascend to positions of power.

“Panic is the sudden realization that everything around you is alive.” — William S. Burroughs, from Ghost of Chance

When friends visited me in New York, where I lived for decades, I would take them on walking tours through the city. We would cross the Westside Highway and stroll the pedestrian walk along the Hudson River, or cross the East River by walking across the Brooklyn Bridge.

The effect of these excursions on people was often profound … the combined elements of the elemental beauty of the rivers and vastness of the city’s architecture and scope, clamor, and the dense interweaving of traditional ethnic customs and ad hoc social codes of New Yorkers often would heighten the visitors’ senses and open them to larger, more intricate awareness of themselves and extant reality … the freeways of the contemporary mind (conditioned to be constantly engaged in manic motion, with one’s mind either frenzied by an obsession with performing (ultimately futile) maneuvers directed to saving time — or stalled at a frustration inducing standstill) were replaced by the exigencies of life at street level, i.e., novel situations that had to be apprehended and negotiated.

The possibilities of life seemed greater. The crimped eros of insular suburban thought became loosened before the city’s intricacies and expansiveness. Although: Not all, or even a scant few, New Yorkers can maintain the state of being. Few of us can live by Rilke’s resolve to “make every moment holy.” Life, in the city, becomes grotesquely distorted … High rents, inflicted by hyper-gentrification, in combination with the deification of success and its cult of careerism overwhelm one’s psyche … There is so far to fall.

Angst (the word originally can be traced to the ancient Greek deity Ananke, the immovable by prayer and offering bitch Goddess of Necessity and the root word of anxiety) clamps down one’s sense of awareness. Ananke dominates the lives of the non-privileged citizenry while Narcissus, Trump’s, the Clintons’, et.al. and their financial and cultural elitists’ patron God rules the day. The pantheon of possibility has been decimated, a cultural cleansing has been perpetrated, by the egoist caprice of the beneficiaries of the late capitalist dictatorship of money.

Hence, we arrive at the primal wisdom tacitly conveyed by anxiety-borne states of fight or flight. Due to the reality that capitalism, on both an individual and collective basis, drives individuals into madness, all as the system destroys forest and field, ocean and sea and the soul-scape of all who live under its rapacious dominion, our plight comes down to this: We either struggle and strive, by and any and all means, to end the system — or it will end us.

This Chart Defines the 21st Century Economy

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By Charles Hugh Smith

Source: Of Two Minds

There is nothing inevitable about such vast, fast-rising income-wealth inequality; it is the only possible output of our financial and pay-to-play political system.

One chart defines the 21st century economy and thus its socio-political system: the chart of soaring wealth/income inequality. This chart doesn’t show a modest widening in the gap between the super-wealthy (top 1/10th of 1%) and everyone else: there is a veritable Grand Canyon between the super-wealthy and everyone else, a gap that is recent in origin.

Notice that the majority of all income growth now accrues to the the very apex of the wealth-power pyramid. This is not mere chance, it is the only possible output of our financial system. This is stunning indictment of our socio-political system, for this sort of fast-increasing concentration of income, wealth and power in the hands of the very few at the top can only occur in a financial-political system which is optimized to concentrate income, wealth and power at the top of the apex.

Well-meaning conventional economists have identified a number of structural causes of rising wealth/income inequality, dynamics that I’ve often discussed here over the past decade:

1. Global wage arbitrage resulting from the commodification of labor, a.k.a. globalization

2. A winner-takes-most power law distribution of the gains reaped from new technologies and markets

3. A widening mismatch between the skills of the workforce and the needs of a rapidly changing economy

4. The concentration of capital gains in assets such as high-end real estate, stocks and bonds that are owned almost exclusively by the top 10% of households

5. The long-term stagnation productivity

6. The secular decline in the percentage of the economy that flows to wages and salaries

While each of these is real, the elephant in the room few are willing to mention much less discuss is financialization, the siphoning off of most of the economy’s gains by those few with the power to borrow and leverage vast sums of capital to buy income streams–a dynamic that greatly enriches the rentier class which has unique access to central bank and private-sector bank credit and leverage.

Apologists seek to explain away this soaring concentration of wealth as the inevitable result of some secular trend that we’re powerless to rein in, as if the process that drives this concentration of wealth and power wasn’t political and financial.

There is nothing inevitable about such vast, fast-rising income-wealth inequality; it is the only possible output of our financial and pay-to-play political system.

Policy tweaks such as tax reform are mere public relations ploys. The cancer eating away at our economy and society arises from the Federal Reserve and the structure of our financial system, and the the degradation of our representative democracy into a pay-to-play auction to the highest bidder.

It’s time to call the housing crisis what it really is: the largest transfer of wealth in living memory

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By Laurie Macfarlane

Source: OpenDemocracy.net

One of the basic claims of capitalism is that people are rewarded in line with their effort and productivity. Another is that the economy is not a zero sum game. The beauty of a capitalist economy, we are told, is that people who work hard can get rich without making others poorer.

But how does this stack up in modern Britain, the birthplace of capitalism and many of its early theorists? Last week, the Office for National Statistics (ONS) released new data tracking how wealth has evolved over time. On paper, the UK has indeed become much wealthier in recent decades. Net wealth has more than tripled since 1995, increasing by over £7 trillion. This is equivalent to an average increase of nearly £100,000 per person. Impressive stuff. But where has all this wealth come from, and who has it benefitted?

Just over £5 trillion, or three quarters of the total increase, is accounted for by increase in the value of dwellings – another name for the UK housing stock. The Office for National Statistics explains that this is “largely due to increases in house prices rather than a change in the volume of dwellings.” This alone is not particularly surprising. We are forever told about the importance of ‘getting a foot on the property ladder’. The housing market has long been viewed as a perennial source of wealth.

But the price of a property is made up of two distinct components: the price of the building itself, and the price of the land that the structure is built upon. This year the ONS has separated out these two components for the first time, and the results are quite astounding.

In just two decades the market value of land has quadrupled, increasing recorded wealth by over £4 trillion. The driving force behind rising house prices — and the UK’s growing wealth — has been rapidly escalating land prices.

For those who own property, this has provided enormous benefits. According to the Resolution Foundation, homeowners born in the 1940s and 1950s gained an unearned windfall of £80,000 between 1993 and 2014 alone. In the early 2000s, house price growth was so great that 17% of working-age adults earned more from their house than from their job.

Last week The Times reported that during the past three months alone, baby boomers converted £850 million of housing wealth into cash using equity release products – the highest number since records began. A third used the money to buy cars, while more than a quarter used it to fund holidays. Others are choosing to buy more property: the Chartered Institute of Housing has described how the buy-to-let market is being fuelled by older households using their housing wealth to buy more property, renting it out to those who are unable to get a foot on the property ladder. And it is here that we find the dark side of the housing boom.

As house prices have continued to increase and the gap between house prices and earnings has grown larger, the cost of homeownership has become increasingly prohibitive. Whereas in the mid-1990s low and middle income households could afford a first time buyer deposit after saving for around 3 years, today it takes the same households 20 years to save for a deposit. Many have increasingly found themselves with little choice but to rent privately. For those stuck in the private rental market, the proportion of income spent on housing costs has risen from around 10% in 1980 to 36% today. Unlike homeowners, there is no asset wealth to draw on to fund new cars or holidays.

In Britain, we have yet to confront the truth about the trillions of pounds of wealth amassed through the housing market in recent decades: this wealth has come straight out of the pockets of those who don’t own property.

When the value of a house goes up, the total productive capacity of the economy is unchanged because nothing new has been produced: it merely constitutes an increase in the value of the land underneath. We have known since the days of Adam Smith and David Ricardo that land is not a source of wealth but of economic rent — a means of extracting wealth from others. Or as Joseph Stiglitz puts it “getting a larger share of the pie rather than increasing the size of the pie”. The truth is that much of the wealth accumulated in recent decades has been gained at the expense of those who will see more of their incomes eaten up by higher rents and larger mortgage payments. This wealth hasn’t been ‘created’ – it has been stolen from future generations.

House prices are now on average nearly eight times that of incomes, more than double the figure of 20 years ago. It’s unlikely that house prices will be able to outpace incomes at the same rate for the next 20 years. The past few decades have spawned a one-off transfer of wealth that is unlikely to be repeated. While the main beneficiaries of this have been the older generations, eventually this will be passed on to the next generation via inheritance or transfer. Already the ‘Bank of Mum and Dad’ has become the ninth biggest mortgage lender. The ultimate result is not just a growing intergenerational divide, but an entrenched class divide between those who own property (or have a claim to it), and those who do not.

Misleading accounting and irresponsible economics have provided cover for this heist. The government’s national accounts record house price growth as new wealth, ignoring the cost it imposes on others in society – particularly young people and those yet to be born. Economists still hail house price inflation as a sign of economic strength.

The result is a world which is rather different to that described in economics textbooks. Most of today’s ‘wealth’ isn’t the result of entrepreneurialism and hard work – it has been accumulated by being idle and unproductive. Far from the positive sum game capitalism is supposed to be, we have a system where most wealth is gained at the expense of others. As John Stuart Mill wrote back in 1848:

“If some of us grow rich in our sleep, where do we think this wealth is coming from?  It doesn’t materialise out of thin air. It doesn’t come without costing someone, another human being. It comes from the fruits of others’ labours, which they don’t receive.”

Britain’s housing crisis is complicated mess. Fixing it requires a long-term plan and a bold new approach to policy. But in the meantime let’s start calling it what it really is: the largest transfer of wealth in living memory.

The social and economic roots of the attack on democratic rights

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Inequality and the American oligarchy

By Eric London

Source: WSWS.org

A report published September 27 by the US Federal Reserve, the Survey of Consumer Finances, shows that the top 10 percent of Americans now own 77 percent of all wealth. The top 1 percent increased its share of wealth from 35.5 percent in 2013 to 38.5 in 2016. The share of the bottom 90 percent declined from 25 percent to 22.9 percent over the same period.

These percentages show a transfer of trillions of dollars from the working class to the rich and affluent in just three years.

The bottom three quarters of the population, some 240 million people, now own less than 10 percent of the wealth. That is, if the United States were a 10-storey apartment building with 100 people, the richest person would be living on the top four floors, the nine next wealthiest people on the next four floors, fifteen on the second floor, and 75 people cramped at the bottom level.

Wealth share by wealth decile, Credit: People’s Policy Project

The Federal Reserve data demonstrates, in empirical terms, profound changes in social relations that affect hundreds of millions of people, touching all aspects of political, cultural and intellectual life. The US is an oligarchy in which the government, trade unions, media, universities, and major political parties are instruments used by the ruling class to manipulate the population, mask its own wealth, and crush social opposition from below.

The figures expose the material basis for the emergence of a campaign in the ruling class to block access to the World Socialist Web Site and other left-wing sites in the guise of combatting “Russian aggression.”

In an oligarchy, social inequality is incompatible with democratic rights. Incapable of and unwilling to address the social needs of the masses of people, the government turns to censorship, surveillance, blacklisting, and violence as its preferred methods for defending unprecedented levels of wealth monopolized by the ruling class.

The data shows that the main dividing line is between the top 10 percent and the bottom 90 percent that comprise the working class. The Federal Reserve figures expose as lies the claims by politicians and media pundits that the bulk of the US population belongs to the “middle class.”

Below the aristocracy and the affluent—concentrated in certain neighborhoods of major centers like New York, the San Francisco Bay Area, Los Angeles, Chicago, Houston, and other cities—the United States is a country dominated by tremendous economic hardship. The data shows that while different strata of the population face economic insecurity at different levels of urgency, decades of social counterrevolutionary policies by both parties are bringing them closer together, marking all with the same scars of class exploitation.

The poorest ten percent of the population, some 32 million people, possess negative wealth. They include the homeless and the hopelessly in debt. For this section of the population, roughly equal to the populations of Texas and New York combined, life expectancy, disease rates, and living standards resemble third world conditions.

The next poorest ten percent have no wealth, between $0 and $5,000 per family, less than the value of a 10-year-old used car. The combined wealth possessed by this layer is not significant as a proportion of overall wealth.

Roughly the lower-middle third of the population, from the 20th to 50th percentile, control just 1.6 percent of total wealth. A family of four with two parents working full-time at the minimum wage with one average-priced vehicle and no other assets would fall in the middle of this broad category of workers.

The 64 million people in the 50 to 70 percent range control just 5.1 percent of the wealth. A family with a below average-priced home worth $150,000, plus a vehicle and $0 in savings would be above the 60th percentile in wealth. A family with two working adults making between $40,000 and $50,000 each would find itself in the 70 to 80 percentile, perhaps possessing two cars, a home valued just above the national average of $175,000, a life insurance policy and $10,000 in savings.

The 80 to 90th percentile owns 11.2 percent of the wealth. Two skilled workers with incomes of $60,000 to $80,000 each, one pension, a $300,000 home, and two vehicles would find themselves in this decile. This section is slightly more comfortable, but by no means financially secure.

The chasm separating the top 10 percent from the working class has widened in recent years. From 2004 to 2016, the working class saw its wealth decline precipitously across all strata. The median family in the poorest fifth lost 29.5 percent of its wealth over this period, followed by 24.7 percent for the median family in the 20th-39th percentile, 10.8 percent in the 40th-59th percentile, 17.3 percent in the 60th-79th percentile, and 1.3 percent in the 80th-89th percentile. This wealth went to the top 10 percent, where median family wealth rose by 38.7 percent over the same period.

As a result of this massive transfer of wealth, median family wealth in the top 10 percent is nearly triple that of the 80 to 90 percent, 20 times greater than a family in the 50th percentile, and 254 times more than the median family net worth in the poorest 20 percent.

The political establishment that has overseen this transfer systematically ignores and aggravates the urgent social problems confronting the vast majority of the population.

Footage of Trump flipping paper towel rolls to victims of the storm in Puerto Rico epitomizes the callous and insulting response of the oligarchy to the problems of the working class. But sanctimonious claims by Democrats that Trump’s actions were “insensitive” ignore the fact that the entire ruling class is responsible for the social catastrophe. After all, it was Barack Obama who travelled to Flint, Michigan and told a crowd of people to “drink the water.” Nobody in the Democratic or Republican parties has made any real effort to address the opioid crisis, homelessness, declining life expectancy, storm protection and disaster infrastructure, skyrocketing student debt and the health care crisis.

The three branches of government, largely comprised of millionaires and billionaires, focus exclusively on the interests and social demands of the top 1, and, more broadly, the top 10 percent of society. A key concern of the affluent 10 percent is blocking the growth of social opposition and protecting their own wealth and privileges. In recent years, the American ruling class has become more aware of the growth of social opposition within the population to war, inequality and poverty.

Fearful that the technological advances of the Internet and social media platforms can increase access to alternative political viewpoints, the oligarchy has initiated a campaign to censor left-wing websites and crack down on social media platforms in the name of blocking “Russian interference” in the US political system. Without a shred of credible evidence to back their claims, newspaper editors, TV talking heads, Senate and House committee members, corporate executives, trade union leaders and academics are engaged in a mad rush to censor the Internet and protect the population from “fake news.”

The anti-fake news censorship and blacklisting initiative is an escalation of a years-long campaign by the ruling class to create the framework for police state methods of rule. At the same time, the growth of social inequality revealed in the Federal Reserve figures points to the inexorable intensification of social and class conflict in the United States, the objective foundation for socialist revolution.