Wednesday, September 01, 2010
Big Shots Don't Serve
Saturday, July 31, 2010
America's Disappearing Middle Class
The annual incomes of the bottom 90 per cent of US families have been essentially flat since 1973 – having risen by only 10 per cent in real terms over the past 37 years. That means most Americans have been treading water for more than a generation. Over the same period the incomes of the top 1 per cent have tripled. In 1973, chief executives were on average paid 26 times the median income. Now the multiple is above 300.
In today’s America if you are born in rags, you are likelier to stay in rags than in almost any corner of old Europe.
“I have this gnawing feeling about the future of America,” says [economist Michael] Spence. “When people lose the sense of optimism, things tend to get more volatile. The future I most fear for America is Latin American: a grossly unequal society that is prone to wild swings from populism to orthodoxy, which makes sensible government increasingly hard to imagine."
The crucial driver of growth in the second quarter was business investment in such things as office buildings and equipment and software. Such activity rocketed up at an annual rate of 17 percent in the second quarter, compared with a 7.8 percent increase in the first. The equipment and software category alone grew at an annual rate of 21.9 percent, the fastest pace in 12 years.
The fact that businesses seem to be investing more in equipment than in hiring may be a reason consumers have been reluctant, or perhaps unable, to pick up the pace of their spending.
“There are limits on the degree to which you can substitute capital for labor,” Mr. Ryding said. “But you can understand that businesses don’t have to pay health care on equipment and software, and these get better tax treatment than you get for hiring people. If you can get away with upgrading capital spending and deferring hiring for a while, that makes economic sense, especially in this uncertain policy environment.”Finally, in a NYT op-ed, Bob Herbert wrote about what corporate American has done to workers. He said:
Many ... workers were cashiered for no reason other than outright greed by corporate managers.
From the fourth quarter of 2007 to the fourth quarter of 2009, real aggregate output in the U.S., as measured by the gross domestic product, fell by about 2.5 percent. But employers cut their payrolls by 6 percent.
Worker productivity has increased dramatically, but the workers themselves have seen no gains from their increased production. It has all gone to corporate profits. This is unprecedented in the postwar years, and it is wrong.
Germany and Japan, because of a combination of government and corporate policies, suffered far less worker dislocation in the recession than the U.S. Until we begin to value our workers, and understand the critical importance of employment to a thriving economy, we will continue to see our standards of living decline.It is sad that US tax policy favors capital so much over labor that it discourages businesses from hiring. I am beginning to think that the destruction of the middle class started with the Reagan tax cuts. It has taken more than a generation for that effect to become apparent, but nevertheless, there it is. One reason it didn't show up earlier was that Reagan was such a nice guy, he couldn't bring himself to hurt people. When it became obvious that the huge cuts in government services that his advisers wanted to go with the tax cuts would badly hurt ordinary Americans, Reagan balked, and as a result we got the beginning of the huge budget deficits that we are wrestling with today. But the Republicans have never given up on their "starve the beast" policy of cutting government services by cutting tax revenues. So, the Republicans under Bush II and Reagan have been responsible for some of the largest deficits. They have also been responsible for a massive transfer of wealth from the middle class to the upper class. In particular by eliminating the estate or "death" tax, they have created a hereditary aristocracy in America, something that we thought we had left behind when we rebelled against Great Britain. There are no titles, yet, but there are all the other trappings of an aristocracy.
Friday, July 30, 2010
Brazil Resumes Rocket Launches
Wednesday, July 28, 2010
Letter to Congress
Sunday, July 25, 2010
Israeli Arrow Missile
Friday, July 23, 2010
Financial Times Austerity Debate
Monday, July 19, 2010
Republicans Made a Mess
Saturday, July 17, 2010
Article on Israeli Nuclear Program
Monday, July 05, 2010
Lula, Celso Amorim and Me
Wednesday, June 30, 2010
Draft Coming Back?
Supreme Court Doesn't Believe in Rule of Law
Saturday, June 26, 2010
McChrystal's Firing Not Black or White
Jews Against Zionism
Wednesday, June 09, 2010
Richard Cohen Lies about Israel
It was the plight of Jews consigned to Displaced Persons camps in Europe that both moved and outraged President Harry Truman, who supported Jewish immigration to Palestine and, when the time came, the new state itself. Something had to be done for the Jews of Europe. They were still being murdered.
On May 12, [1948,] Truman held a meeting in the Oval Office to decide the issue. Marshall and his universally respected deputy, Robert Lovett, made the case for delaying recognition -- and "delay" really meant "deny." Truman asked his young aide, Clark Clifford, to present the case for immediate recognition. When Clifford finished, Marshall, uncharacteristically, exploded. "I don't even know why Clifford is here. He is a domestic adviser, and this is a foreign policy matter. The only reason Clifford is here is that he is pressing a political consideration."
Marshall then uttered what Clifford would later call "the most remarkable threat I ever heard anyone make directly to a President." In an unusual top-secret memorandum Marshall wrote for the historical files after the meeting, the great general recorded his own words: "I said bluntly that if the President were to follow Mr. Clifford's advice and if in the elections I were to vote, I would vote against the President."
Monday, June 07, 2010
Jew Hatred Got Helen Thomas
Monday, May 31, 2010
Memorial Day Recognition
Friday, May 28, 2010
Don't Ask, Don't Tell Worked
"As a Vietnam veteran, I oppose ending 'Don't ask, don't tell.' I am sorry that Congress is celebrating Memorial Day by imposing a new hardship on our military.
"I realize that the military pioneered racial integration by allowing blacks to serve. But gays are allowed to serve; they just aren't allowed to talk about their sex lives while serving.
"I think the policy change could have an impact on our war-fighting ability while we are fighting two wars -- Afghanistan and Iraq. I'd say we're ready for a new policy when homosexual sex becomes as common in the Denver Broncos locker room as it is in the US Congress or most prisons."