Archive for income inequality

VIDEO: Need Congress to hear you? When money talks, democracy has no voice.

money talks democracy has no voice
chart senators responsiveness to income groups

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Chris Hayes has been impressing me more and more as time goes on. Here’s what he had to say on his show “All In” to U.S. Senators about the impact the sequester is having on some of the most needy among us, vs the impact it’s having on members of Congress, and how Congress is responding.

Who’s “inconvenienced” more, Senators? Whose opinion matters? Who are you concerned about? Or should I say, what are you concerned about? Answer: Money. It sure isn’t the American people.

Chris Hayes:

Here is what I wish could happen today: I wish every single cancer patient, and every single kid who is getting kicked out of Head Start, and every person losing a job at a government facility because of cut backs or furloughs, every family losing Section 8 housing assistance, I wish every single one of them could have gotten together and been bussed by the thousands from all parts of the country to Reagan National Airport and been rolled out on to the runway and strung out in a line that stretches across the entire air field so that those planes carrying the members of Congress who just cast this vote couldn’t take off. How’s that for inconvenience, Senator?

Here is the entire segment:

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Koch Bros. wealth grew by $33 billion in 3 years as America’s schools report 1 million homeless kids

inequality income

This:

We used to be a country with a rich heart. Now we’re the land of the heartless rich.

That was the opening quote from the website Wall Street on Parade about how the Koch Brothers– You remember them, they’re the ones who are trying to take control of what we see, hear, and read in the Los Angeles Times and about seven other media outlets– got really rich as a million families got even poorer.

In one of the worst economic downturns since the Great Depression, the billionaire Koch brothers who habitually rail against government’s unfair burden on the wealthy, have almost doubled their net worth to a combined $64 billion [...]

During that same time period, some of the bleakest economic news has been reported for the rest of America. Just yesterday, the Pew Research Center released a study showing that between 2009 to 2011 the richest 7 percent of Americans increased their wealth by 28 percent while the remaining 93 percent of households lost 4 percent of their net worth. The study analyzed Census Bureau data for the period.

The L.A. Times article on this reads “Rich get richer in recovery, but net worth of lower 93% declines“:

The report found that the average wealth of the upper 7% of households jumped to $3.17 million in 2011 from $2.48 million two years earlier. The mean wealth for the remaining 93% dipped to $133,817 from $139,896 as their fortunes were tied up in their homes. From 2009 to  2011, property values sank 5%, based on the Case-Shiller index.

Edward Wolff, an economist at New York University who has written extensively on wealth distribution, said, “The Fed has kept things pretty good for the wealthy.”

I wonder how this terrible income inequality could be remedied, at least enough to end homelessness in this country. Who could reach out? Who could try to help those in need? Who has the ability to do that?

According to the Department of Housing and Urban Development (HUD), it would cost $20 billion to end homelessness in the United States. The Kochs have enough money to do that with $44 billion left over to funnel to their plethora of right wing front groups who serially bellyache about how unfair things are for the affluent in America.

The article goes on to note that New York City Mayor Michael Bloomberg  has a net worth of $27 billion and owns at least 11 homes.

This is not to say that two people and two people alone should be responsible for ending such a miserably huge problem, but you get the idea. The state of America is not exactly, well, “fair and balanced.”

In fact, Wall Street is at record highs and fairness in this country is at record lows.

Please follow the link for more gory details.

What I will not write about today

frustrated13

Sometimes I get so frustrated and/or disheartened and/or annoyed by some of the news stories of the day that I can’t bring myself to write about them. Here are a few recent reports that made my blood pressure hit the roof. I am avoiding delving into them at length out of concern for my physical and mental health.

Actually, I did write about one of them: Gun background check plan fails in Senate 54-46. Here are statements from NRA, Mayors Against Illegal Guns and VIDEO: #Newtown parent, Obama on failure to pass gun violence law: “Gun lobby & its allies willfully lied about the bill.”

Here are the others that drove me to drink:

See what I mean? So who’s up for a couple of Margs or a trough of wine?

soon to be a drunk mess

House GOP votes down minimum wage increase. So did these six Dems.

inequality income

Here are the final vote results for a bill that would have increased the minimum wage and helped a whole lot of people who could use a few more dollars in their wallets. Democrats tried to bring the national minimum wage of $7.25 up to $10.10 by 2015 via an amendment to a jobs training program bill.

That didn’t work out very well.

Then again, neither did this income equality:

chart graph income inequality labor v corporate profits

House Republicans voted down the minimum wage proposal unanimously, so feel free to thank them. But some of that gratitude should be extended to the six Democrats who joined them. Here are their names:

John Barrow 

Jim Matheson

Mike McIntyre

Bill Owens

Collin Peterson

Kurt Schrader

“Like NRA who scares the Bejesus out of elected officials when we talk gun control, rich do same with loop holes”

gutting

Another guest post is by our pal and regular TPC contributor, David Garber:

 WHO’S GUTTING WHO?

Here’s the headline currently on Huffington post: “Obama: ‘We’re Probably Not Gonna Get A Deal’ If GOP Insists On ‘Gutting’ Medicare, Social Security, Medicaid”

Okay, on the surface, that sounded reasonable until I focused on the word, Obama’s word, ‘Gutting’. Wait a minute — that should be touching, not gutting. Stop way before gutting. The holy trinity cannot be touched. Period.

Why are we even discussing this? Has Obama lost sight of his victory from last November? Here we are, just beginning his second term, and he’s out trying to strike a grand bargain. Why? Is America clamoring for one? Maybe, but not the one Obama or the Republicans are talking about.

What we the people are looking for is a deal on immigration reform and gun control. And jobs.

But do you know what we need even more? An overhaul to the tax system. We want a fair and efficient system — with more revenue for the Dems and less government for the Repubs. And you want to know how easy that is to accomplish? Very.

Don’t let the liars in Washington fool you. Or the shortsighted news readers on the TV and radio. Overhaul is as simple as a stroke of the pen.

How? Simply slash the outrageous tax breaks for the super rich. Before you tune me out, just consider this:

  • No more yacht write-offs (how many people do you know that have a yacht? You pay taxes to cover their write-off).
  • No more private jet write-offs (again, how many people do you know that have private jets? You’re paying for their write off with your taxes).
  • No more corporate off shore stashing of profits to avoid taxes (you have to pay taxes, why shouldn’t they?).
  • No more subsidies to oil companies thus giving them billions in profits with unfair write-offs like off-shore banking. (You’re paying for it with your taxes).
  • No more tax breaks to companies for outsourcing jobs. (Yes, we give a break if a company hires workers in a foreign land as opposed to a legal worker here in the states.)
  • No more giving free money to banks (too large to fail or jail) thus giving them even larger corporate writeoffs for managing the money they’ve been loaned).

Do you realize we give big banks interest-free money and let them keep it and call it profits? Yup, and they’re not even encouraged to use it for customer loans or service. It’s OUR TAX MONEY. Yet go in and try to get a loan. Good luck.

If a big bank needs cash to stay afloat, force them to use that money for loans to individuals and small businesses, or else the bank must return the money within two years WITH a punitive interest payment for the use of the money. If you borrowed money, whether you used it or not, you’d have to pay the piper. Why not JP Morgan/Chase or Citibank?

Implement these suggestions and watch how quickly financial institutions start giving out home mortgages to those who qualify or start up capital for small businesses to get launched. Need new equipment to modernize your small company? The banks will loan it because if they don’t, they will have to pay interest. Watch the economy jump then. Big banks will become smaller and new banks will start up and carry those who leave the big established financial institutions for those who care about their customers. No depositor will be losing money. Nor will the banks unless they’re unscrupulous, in which case, leave them. There will be options.

What’s holding us back are loopholes that should never have been in existence in the first place. Their purpose has long since retired — along with the crooks who wrote them into the tax codes.

And just like the NRA who scares the Bejesus out of our elected officials when we talk any sort of gun control, the rich do the same if you threaten their loop holes.

Politicians think only the rich put money into their campaigns so the poor and middle class don’t matter. Ask Karl Rove how that went. Our vote is what they need even more than money. And our vote counts just as much as the millionaires’ or business tycoons’.

So demand what’s important — our elected representatives start representing us — the poor and middle class. The rich don’t need our help. Obama and Congress should be talking about gutting — but gutting the tax system, not our security nets.

The Holy Trinity, Medicare, Social Security and Medicaid cannot be tampered with. They’re not the problem. We can even improve them and cut our taxes at the same time — hear that, Republicans, tax cut — if you stop protecting your rich cronies and do your job.

Congress, we can remove you — and we will. We’ll gut you (with our votes) like Jack the Ripper — a sacrifice that’s more important than gutting 99% of the public. Dump the Chump!

For the past 25 years, David Garber has been serving as the show runner and or writer on some of television’s biggest hits… Saved By The Bell, Power Rangers, 227, Bill Cosby Show and many other network series. His writing and producing have also netted David two very prestigious awards:the PRISM AWARD and the TV CRITICS AWARD – TV SPECIAL OF THE YEAR. Currently he’s authoring a short story series called “A Few Minutes With…”

“The Republicans and Democrats bet they can make each other blink first.”

you blinked

Another guest post is by our pal and regular TPC contributor, David Garber:

Wanna Bet?

From time to time, on this very site, Laffy and Paddy post very interesting bar bets. Sure ways you’ll win a free drink if you can find a sucker to take them. I love those as there’s always a catch. A gimmick. A “trick” either with words or with actions. Some of these simply amaze me. Others cause you to slap your forehead and make you ask, why didn’t I see that?

But once in a while, you do “see that” or you amend the challenge so it goes in your favor. The sequester is just such a bar bet.

Here’s how. The Republicans and Democrats bet they can make each other blink first. That’s the misdirect. They have you thinking about blinking, when really what this is all about is getting some budget cuts — with or without increased revenue — depending on your point of view.

So the gauntlet is tossed. It’s called sequestration. The Democrats make a go of it by playing Chicken Little. They say the sky’s falling. The Republicans counter playing Rope-A-Dope. They say we need even deeper cuts and no revenue increase. We don’t want to touch taxing yachts, private jets, or cutting write-offs for third and fourth houses. (Some might call this the 2% rule as it affects only the top 2% of the country) — and while we’re at the cutting stage, let’s drop a bunch of  our social safety nets, just to be on the “safe” side and get the Dems to blink. (That’s called sticking it to the 98%)

The cocky Congress accepts the bet. Sequestration, the challenge, begins. But neither side blinks. So who wins? The Republicans say they do. “Look at all those cuts we got in sequestration ” The Democrats are saying, “Not so fast. Look at all the jeopardy you’re causing by weakening our defense, gumming up our air travel and putting our health and food safety at risk!”

The payoff is about to come. And just like hearing an old joke, you know the punchline before it comes — but also like an joke, it’s only old if you’re heard it before. And we have. The Republicans say we’re not weak on defense, we’re strong. And they pull out the old, “Let’s create a new spending bill and only address those things we want put back in the budget and even increase defense spending to show our steel balls. We have the majority in the House. We can pass it and save the day.” The Republicans to the rescue.

They’ll force Obama and the Democrats to look weak on defense and border protection if they don’t go along. They calculate that the Democrats will blink. The House is in Boehner’s pocket on this one. And the Senate won’t have enough Democrats who are strong enough to vote against national security to stop the new spending bill to make it to Obama’s desk.

Blink.

But wait! It’s a bar bet after all. And there’s always a gimmick.

The Democrats counter, taken directly from the Republican play book — load the bill down with totally unrelated additions. Tack on teaching, research, first-responders, air traffic controllers, airport security, FDA funding, et al — maybe even a new bridge to nowhere– everything else that has been cut under sequestration, forcing the spotlight on the Republicans as they try to pare those additions from the bill.

The spotlight moves off of the Dems and onto the Repubs, making them look like obstructionist weaklings — and who can argue with that description — Bobby Jindal? Newt Gingrich? Maybe call in Jeb Bush? It’s called the double end around play. Reconciliation between House and Senate bills.

The point of this lesson is that the trick is in the details — and by trying to make the Democrats look weak, they can turn the table and make the Republicans look even weaker by having passed these cuts to begin with. Sure some Dems voted for it — with a gun put to their head to get an increased debt ceiling so we didn’t default on our obligations. Not going into sequestration to start would have been the smart move. But who can accuse these cronies of being smart?

Fortunately, there’s still time before irreparable damage has been done to pass a simple bill rescinding the sequestration portion of the 2011 budget bill — called the 2013 Budget Adjustment Bill. It may take a week or so — right now Congress has no skin in this fight. Their salaries are guaranteed not to be touched. So they’re not in any hurry. We Americans are, but we’ll have to wait it out for the bar bet to be called a draw, and then we go right back to where we were. Both sides blinking at the same time.

So let’s patiently watch this bet play out. If done right, the status quo will return. If done wrong, the Democrats lose and we along with them. So grab a bar stool and let’s see if I’m right. Wanna bet?

For the past 25 years, David Garber has been serving as the show runner and or writer on some of television’s biggest hits… Saved By The Bell, Power Rangers, 227, Bill Cosby Show and many other network series. His writing and producing have also netted David two very prestigious awards:the PRISM AWARD and the TV CRITICS AWARD – TV SPECIAL OF THE YEAR. Currently he’s authoring a short story series called “A Few Minutes With…”

Wall Street Soars with Wealth as Wages Stagnate, Jobs Remain in a Slump

hunger and rejection corporate

dow jones march 5 2013As of 12:30 PT

Update:

The Dow Jones industrial average rose more than 100 points today, allowing the world’s most-watched stock index to close at a record high.

It marks the highest daily close since October 2007, just before the financial crisis punished the stock market.

For the latest information go to www.latimes.com.

chart corporate profits highCorporate profits

graph workers wages as a percentage of the economy near record lows via Think ProgressWorkers’ wages as a percentage of the economy, which are hovering near record lows.

Your Daily Dose of BuzzFlash at Truthout, via my pal Mark Karlin:

The March 4 NYT headline lays it out bluntly: “Recovery in U.S. Is Lifting Profits, but Not Adding Jobs.” …Even those who are employed are finding that their wages are not growing relative to the explosion in corporate profits.

The grim figures in terms of the working class speak for themselves in the NYT story:

As a percentage of national income, corporate profits stood at 14.2 percent in the third quarter of 2012, the largest share at any time since 1950, while the portion of income that went to employees was 61.7 percent, near its lowest point since 1966. [...]

Corporate earnings have risen at an annualized rate of 20.1 percent since the end of 2008, he said, but disposable income inched ahead by 1.4 percent annually over the same period, after adjusting for inflation.

As BuzzFlash at Truthout noted in “A Tale of Two Economies” last autumn:

However, what is more important than the unemployment rate is the overall degradation of work and wage stagnation and decline under the current corporate and business climate that devalues labor.  [...]

This is the primary story of economic distress in the United States at this time: the devaluation of those who are paid by the hour….

After all, we have two economies – and one of them you barely hear about as billionaires whine about the threat of higher taxes on their wealth.  The second economy, the economy of the privileged, is booming.  The other day the stock market reached near record highs. [...]

The rich are making out like bandits in the booming Wall Street economy that is based on profits squeezed out of firing workers, lowering net wages (adjusted for inflation), and outsourcing jobs to exploited labor overseas. [...]

[T]he March 2013 NYT article begins with these observations:

[...] With millions still out of work, companies face little pressure to raise salaries, while productivity gains allow them to increase sales without adding workers….

The result has been a golden age for corporate profits, especially among multinational giants that are also benefiting from faster growth in emerging economies like China and India. [...]

As the stock market soars, those who labor for a living are left further and further behind.

Please read the entire post here.

chart ed schultz income disparity middle class