UA-43475823-1

The Wrongologist

Geopolitics, Power and Political Economy

SOTU: Boring Like the Super Bowl, But Without the Snacks and Beer

The Daily Escape:

The sleeping kid is Joshua Trump. He was bullied for sharing the same last name as, you know. The kid is one Trump who has already mastered “Executive Time”.

 Young Trump kinda sums up the SOTU, along with this:

Certainly looks like an “FU” clap from Nancy Smash. Photo by Doug Mills/The New York Times/Getty Images

Wrongo thinks the best part of the 1 ½ hour Trumpshow were the shout outs to people in the audience. They took up about 1/3 of the time, and provided some interest, even if most were ham-handed efforts to represent administration policy. These introductions of citizens in the SOTU audience have been around since Ronald Reagan in 1982, and usually give us a bit of a break from the eternal SOTU spewing.

Other than that? Vox makes a good point:

“There were two truly well-done sections of the speech. One was the troll of the Democrats present around the divisive term ‘socialism.’ The other was a series of moments on the stories of Holocaust survivors and World War II veterans.”

Most of the speech was either recycled campaign themes from 2016, or possible 2020 themes being screen-tested for the Republican faithful. Republicans in the room were very happy to see that Dems wouldn’t clap for the war on abortion, or for Trump’s pledge that America would never be a socialist country.

Wrongo thought that Trump’s review of the economy was effective. It is surprising that he doesn’t reference America’s late-stage economic recovery from the Great Recession more often. That, along with abortion, marauding immigrants, and socialism are setting the stage for what we can expect from Republicans over the next two years.

Why did Trump threaten Democrats about investigations? He said:

“If there is going to be peace and legislation, there cannot be war and investigation. It just doesn’t work that way!”

He’s saying that he will obstruct legislation unless Democrats stand down on investigating him. Fat chance. He also said this:

“An economic miracle is taking place in the United States — and the only thing that can stop it are foolish wars, politics, or ridiculous partisan investigations…”

Nobody should threaten America’s economy for personal reasons. That prompted some boos from Democrats. Even Republicans greeted Trump’s threat to economy with near-silence. And the GOP weren’t totally craven yes boys for Trump elsewhere in the speech. The part about trade was poorly received by GOP members. The part about pulling troops out of Afghanistan and Syria was also met with near-silence.

Nancy Pelosi said afterwards that even though Trump spoke of the honor of being in the House chamber to deliver the State of the Union:

“He threatened the United States Congress not to exercise its constitutional responsibility of oversight.”

The SOTU was as boring as Sunday’s Super Bowl, but without the uncertainty of knowing who would win or lose.

Even before Trump opened his mouth at the SOTU, it was clear that America would be the loser.

 

Facebooklinkedinrss

Should America Intervene in Venezuela?

The Daily Escape:

Bald Eagle on the Housatonic River, CT – February, 2019 photo by JH Clery

On Sunday’s Face the Nation, Trump was asked about Venezuela and whether he’d negotiate with President Maduro to convince him to exit. Trump put military intervention squarely on the table:

“MARGARET BRENNAN: What would make you use the U.S. military in Venezuela? What’s the national security interest?

DONALD TRUMP: Well I don’t want to say that. But certainly it’s something that’s on the- it’s an option.”

This seems to be part of a larger Latin American plan. The WSJ reports that the Trump administration’s plans include regime change in Venezuela, Nicaragua and eventually Cuba. This is a multiyear neocon project that has at least some bipartisan political support. It may require military force, as Trump indicated to CBS that he’s willing to consider. One thing that the WSJ reports is this:

“US law-enforcement officials say they have evidence Mr. Maduro directed state resources to create what they allege has become one of the most powerful international narco-trafficking operations in the world, and with links to Hezbollah, the Lebanese group designated by the US as a terror organization.”

So, there you have the first Western Hemisphere argument to “fight them over there, rather than fight them here”.

As we said on Saturday, nothing unites a country like a sovereign enemy on its borders. Venezuelans may hate Maduro, but they also hate the US. China and Russia may be worried about the $50 billion and $17 billion Venezuela owes each respectively. Turkey has also supported Maduro. Although they all are Maduro’s allies, it is unclear if they would be willing to help, should the US intervene.

The consequences of all of our former interventions should be screaming at us. But, John Bolton, Mike Pompeo and Donald Trump seem deaf to the messages. Bolton said:

“We think stability and democracy in Venezuela are in the direct national interests of the United States right now…The authoritarian regime of Chávez and Maduro has allowed the penetration by adversaries of the United States, not least of which is Cuba.

Some call the country ‘Cubazuela’, reflecting the grip that Cuba’s military and security forces have on the Maduro regime. We think that is a strategic significant threat to the United States and there are others as well, including Iran’s interest in Venezuela’s uranium deposits.”

Maduro is no prize. The Economist reports: (brackets by Wrongo)

In the past five years GDP has fallen by half. Annual inflation is reckoned to be 1.7m%…which means that Bolívar savings worth $10,000 at the start of the year [will] dwindle to 59 cents by the end….People are malnourished and lack simple medicines, including antibiotics. Hospitals have become death traps for want of power and equipment. Blaming his troubles on foreign conspiracies, Mr. Maduro has rejected most offers of humanitarian aid.

Juan Guaidó, head of the Maduro opposition, and President of the National Assembly, has support from the EU, and the Lima Group of 12 Western Hemisphere countries (including Argentina, Brazil and Canada). The US recognized Guaidó early.

The question is, should we intervene at all? And if the answer is yes, how should we intervene?

The US is still Venezuela’s main trading partner. Last week, we imposed curbs on purchases of the country’s crude oil, and a ban on imports from the US of the diluents that must be blended with the extra-heavy oil from the Orinoco Belt to allow it to flow through domestic pipelines. The first hits Venezuela’s oil exports, while the second curbs their production. This will reduce revenue from oil exports by more than $11 billion.

By ordering that payments for Venezuelan oil be put in bank accounts reserved for Guaidó’s government, the US hopes to asphyxiate the regime, expecting that the armed forces will then switch sides to Guaidó.

Venezuelans face the dreadful task of having to topple their own government. This primarily means persuading their army to change sides. Other nations can pledge moral support to Juan Guaidó. But sanctions and US threats may prove counterproductive.

Venezuela poses no threat to US security. Since GW Bush, we’ve found excuses to attack Iraq, Afghanistan, Libya and Syria. We’ve imposed economic sanctions on Russia, Iran and Myanmar. The gain for our security has been negligible.

Military intervention has become an occupational disease of America’s leaders.

The urge to help Venezuelans in need is natural. Doing nothing is painful and seems callous. But will intervening really help? Even states with despotic leaders are sovereign. They must make and correct their own mistakes, and ultimately, be strengthened by doing so.

Regime change in Caracas is one possible outcome of our intervention. Civil war is another.

It is a certainty is that American lives and money will be lost.

Trump must choose wisely if intervention is on the table.

Any bets on that?

Facebooklinkedinrss

Monday Wake Up Call – Wreck It Ralph Edition, February 4, 2019

The Daily Escape:

The Expectation — 1936 painting by Richard Oelze

(Patriots won a tough Super Bowl, and the chili was terrific!)

Ralph Northam is the Democratic governor of Virginia. Ralph is on pace to wreck his political life. Here’s the story so far:

On Friday, Northam’s personal page from his 1984 medical school yearbook surfaced. It includes a picture of two unidentified people, one wearing blackface, the other in a Klan robe and hood.

Within a few hours, Northam says he’s one of the people in the picture, although he doesn’t say which of the two people he is.

A few hours later, he says he’s definitely NOT in the picture, but he confesses to a different racist escapade. Around the time that he graduated from medical school, he participated in a Michael Jackson impersonation contest, and used shoe polish to darken his skin.

Eugene Robinson had a great take, using Jackson’s tunes:

But Northam must have done enough in his youth to mistakenly assume that the picture in the yearbook was of him, even though he had never even seen that picture before Friday.

Is anything about his story even plausible, much less true? So the question becomes, what follows IF the story as he’s telling it now is true? Wrongo condemns his actions, and he’s certainly handled this as poorly as possible.

As a practical matter, his political career is over.

Wrongo was born into a racist family system. Both sides of his family were without doubt, white supremacists. But as a child of the silent generation, living in a white suburban NY culture, by 17 years of age, Wrongo and all of his friends had figured out that white supremacy was unacceptable.

If Northam had said, “I grew up in a place and time when racism was tolerated, and even at 25, I hadn’t quite left it behind. But my record shows I’m not that guy now, and haven’t been for 30 years. I am deeply embarrassed and sorry I was such a dope back then“, we could be more forgiving.

But instead, he says he doesn’t recall, and offers up a different racist experience while invalidating the first racist experience.

Northam is undergoing political death by a thousand cuts. He’s done, he just hasn’t come to terms with it. Sadly, it didn’t necessarily have to be that way. He just wasn’t willing to do the difficult work of first, being honest with himself, and then, being honest with the rest of us.

Northam’s whole story is especially upsetting in light of studies that show that medical students believe black people feel less pain than whites. While Northam was training to be a doctor, apparently, he was dressing up blackface, and possibly in Klan costumes.

Did his racism have a negative effect on any black patients he may have treated?

Even if you take at face value his claim that he isn’t in that yearbook photo, he clearly remembered wearing blackface while dressing up like Michael Jackson that same year. If wearing blackface is disqualifying, then his Michael Jackson imitation is reason enough to step down. Remember that he said:

“I only blackened my face a little bit because everybody knows shoe polish is hard to get off your face”

Sorry, but most people have no idea how hard it is to get shoe polish off your face. Or, that shoe polish is the accepted method of blackening your face. Sadly, Northam clearly doesn’t think his blackface admission is disqualifying. He isn’t sorry for doing it–he’s sorry he got caught.

When this type of thing happens, someone always says we shouldn’t punish him for something that happened 35 years ago, that we should forgive and forget. Some will say that Democrats are showing an inappropriately heightened sense of political correctness. That they are exaggerating the offense in this case.

We ought to forgive, but there can be no forgetting.

Time to wake up America! Racism is our original sin, and it is still practiced by both political parties, and by plenty of average citizens. We can’t call for Rep. Steve King (R-IA) to resign for saying that White Supremacy is A-OK, and not also insist that Governor Ralph Northam step down.

 

Facebooklinkedinrss

Sunday Cartoon Blogging – Super Bowl Edition, February 3, 2019

Super Bowl Sunday has finally come. Wrongo made chili and a new batch of tomatillo sauce. Everybody likes a day when we’re free to eat and drink whatever is set in front of us. The Super Bowl has become a de facto holiday, one for which calories don’t count.

Trump likes to gloat that the NFL is in real trouble. Thanks to him, no one watches the games. Everyone is too angry at the uppity black football players, many of whom have knelt during the national anthem. He ignores that they are protesting police brutality against African-Americans. Despite What Trump says, today’s game will be the most-watched TV broadcast of the year. The Super Bowl is the last unifying moment when the whole country tunes in together.

Howard Schultz’s decision to run has made enemies of some Democrats:

Trump’s dream order:

Saturday was Groundhog Day. Trump didn’t see a wall:

Trump says Intelligence Chiefs are wrong about threats:

Anti-Vax’ers have a lot in common with POTUS:

Capitalism Reform must happen soon:

 

Facebooklinkedinrss

Saturday Soother – February 2, 2019

The Daily Escape:

Hoggar National Park, Algeria – 2015 photo by Amri Mohammed

The blog Political Violence @ a Glance posted an article, “Three Lessons from the History of Foreign-Imposed Regime Change” by Melissa Willard-Foster, an assistant professor of political science at the University of Vermont.

She puts the Trump Administration’s support of Venezuela’s opposition leader, Juan Guaidó, in perspective. Despite the fact that while Trump was running for president, he promised to “stop racing to topple foreign regimes,” he’s now saying Venezuela’s president Maduro must go.

According to Willard-Foster, there is a long tradition by American presidents of attempting Foreign-Imposed Regime Change, or FIRC. She lays out three FIRC lessons from our history:

Lesson #1

The more fragile a leader’s political power is, the less likely that leader will cave in to foreign pressure. Weak leaders are difficult to coerce. If a foreign power demands change, the more the incumbent fears an attack by domestic enemies. The incumbent becomes very difficult to coerce.

But politically weak leaders often seem relatively easy to overthrow, and their domestic enemies are more than happy to help the foreign power take them out. Willard-Foster’s research shows that the probability of FIRC rises by 112% for leaders with at least two predecessors taken out by a coup, or rebellion in the past ten years.

Lesson #2

America’s overthrow of Panama’s Manuel Noriega demonstrates what happens when the domestic politics in the foreign power’s country make it politically feasible for the foreign power to take military action. Like Maduro in Venezuela, Noriega railed against US imperialism and broke off relations with the US. When crises escalate, a single incident can lead to military action, and that happened in Panama. When a US service member died in December 1989 after an encounter with Noriega’s forces, the Bush administration had the domestic political cover it needed. Chairman of the Joint Chiefs Colin Powell, made the case for intervention. He argued: (brackets by Wrongo)

“There will be a few dozen casualties if we go [in]…If we don’t go, there will be a few dozen casualties over the next few weeks, and we’ll still have Noriega.”

The US decided that coercing Noriega wasn’t changing anything, but regime change by force could.

The risk of a US military escalation may explain why Maduro offered to negotiate with the opposition—he wants to avoid giving Trump justification for military force.

Lesson #3

The third lesson from the history of FIRC is that no matter how disastrous the last FIRC attempt was, policymakers still believe it will work this time. From Willard-Foster:

Whatever approach failed last is usually what policymakers avoid the next time. When George H.W. Bush and Bill Clinton’s indirect approach to toppling Saddam Hussein failed, George W. Bush capitalized on the post 9/11 public mood for war to launch an invasion. The lesson Obama drew from the costly Iraq occupation was to avoid using troops to oust Libyan leader Muammar Qaddafi. The fallout in Libya then convinced Obama to avoid using military force in Syria, where he reluctantly funded the Syrian opposition.

Trump’s current Venezuelan approach is an indirect strategy, relying on economic and diplomatic pressure. Whether Maduro stays in power largely depends on the Venezuelan military. If Russia and China can blunt Trump’s economic pressure, Maduro may keep the military’s loyalty.

If China and Russia succeed in propping up Venezuela’s economy, Trump will have two options: Continue calling for regime change, while doing nothing about it, (as he’s doing with Iran) or employ military force. If protests grow, this will suggest Maduro’s position is weakening, which could cause Maduro to lash out, and possibly provide political cover for Trump choosing military force.

In supporting Guaidó, it’s unclear what path Trump will take. If, like Noriega, Maduro believes caving in to US demands will imperil his political (and personal survival), he’ll dig in.

But, a weakened Maduro appears, and still digs in further, the more likely it becomes that Trump will continue the tradition of forcibly toppling foreign regimes.

Time to move on from another week of “All Trump, all the time” to the anticipation of gorging ourselves during the halftime show of Sunday’s Super Bowl. You need to prepare for the chili, nachos, dips, chips and alcohol by relaxing today with a Saturday Soother.

Start by brewing up a strong cup of Honduras Las Flores Parainema ($22/12oz.). It is sourced by the Brooklyn NY-based Café Grumpy, an aptly-named vendor for our times.

Now settle back in a comfy chair, and take a few minutes to listen to Sarah Chang play Elgar’s888 composition, “Salut d’Amour, Op.12”, accompanied by Andrew von Oeyen, on piano. Chang is American, born in US, and raised in New Jersey:

Those who read the Wrongologist in email can view the video here:

Facebooklinkedinrss

It’s Time to Raise Taxes

The Daily Escape:

Autumn in Hunza Altit Valley Pakistan – 2017 photo by Nasr Rahman. This shows that beauty can exist in very difficult places.

In 1785, Thomas Jefferson called for a geometric progression in taxes on assets of property holders as a way of lessening inequality. People with more assets would pay much higher taxes. Today, we’re still in search of policies that will do the trick. From The Fiscal Times:

Democratic Sen. Elizabeth Warren and Rep. Alexandria Ocasio-Cortez have sparked intense debate this month by proposing higher taxes on the rich, with Warren calling for a wealth tax and Ocasio-Cortez proposing a 70% top marginal tax rate.

But, Senate Republicans are moving in the opposite direction. Three GOP senators reintroduced legislation to permanently repeal the federal estate tax. The 2017 GOP tax overhaul has already reduced the number of estates subject to the tax by roughly doubling the value of assets that can be excluded from the tax. For 2019, this tax will only be paid by 1,700 families, but that’s all too much for Republicans.

Axios just reported on what Americans think about taxes:

Polling has found tax increases on the wealthy to be popular. A survey earlier this month by The Hill and HarrisX found that 59% of registered voters, including 45% of Republicans, support increasing the top income tax bracket to 70%. A Fox News poll released last week found that 70% of voters favor tax increases on families making over $10 million a year and 65% favor tax hikes on incomes over $1 million annually.

Those numbers suggest that a complete repeal of the estate tax might be about as popular as the polar vortex.

This shows how vast the gulf is between Republicans and Democrats on taxes. A poll by Axios, along with SurveyMonkey, ironically presented at Davos, showed that 70% of Americans think the economic system is skewed toward the wealthy and the government should do more to fix it. It further showed respondents are ready to vote for a 2020 candidate who agrees.

  • 58% of people surveyed say that “unfairness in the economic system that favors the wealthy” is a bigger problem than “over-regulation of the free market that interferes with growth and prosperity
  • Among 18-24 year-olds, that gap is a chasm: 76% to 21%
  • Among those 65 and older, it’s a very narrow 51% to 46%
  • 89% of Democrats agree
  • 68% of independents agree
  • But 77% of Republicans say over-regulation of the free market is a bigger problem than economic unfairness
  • A huge majority of Democrats (90%) said they would be excited to vote for a candidate who promises to reform the economic system, with 71% of independents saying the same.

(SurveyMonkey’s online poll was conducted January 16 through 18, 2019 among a national sample of 2,277 adults.)

After WWII, America had very high marginal tax rates, and one result was corporate income was reinvested in the company, rather than given to top management or shareholders. Why give 70% of every dollar to the government?

Back then corporations, in exchange for limited liability, assumed they had fiduciary duties to the public and to their employees as well as shareholders. But the Right got behind the doctrine that a corporation’s only duty was to their shareholders. CEO’s became significant shareholders through stock options.

Then, Reagan and Bush lowered taxes on corporate and personal income, and dividends.

Our basic political issue in America has become: “Does the economy exist to serve the nation, or does the nation exist to serve the economy?”

Our affirmative vote must be for the economy to serve the nation. Over the past 40 years, we have reduced taxes for high earners and corporations. We’ve added loopholes that subsidize corporations, but our need for infrastructure spending hasn’t declined, and our military spending has grown dramatically.

Over the past forty years, the share of income taxes paid by corporations has declined. It is now only 9% of US government tax revenues. It was about 24% in 1960.

We’ve financed the tax cuts for high earners and corporations with ever growing budget deficits. The golden age for these policies must end now.

We need to go back to the days of socially responsible capitalism, not the predatory capitalism we have today. High marginal income tax rates will help. In addition, taxing dividends at the same as ordinary income is a good idea.

Let’s raise the capital gains tax above its current 20% rate.

Let’s find a Constitutional way to tax wealth as Elizabeth Warren suggests. Add a very small transaction tax on sales of stock on all public markets.

It’s time to move past the politics of “What can America do about inequality without corporations and rich people actually giving anything up?

This isn’t an anti-corporate, anti-wealth assault, it is a necessary corrective to bad tax policy from the 1970s to today.

Facebooklinkedinrss

Intelligence Chiefs Contradict Trump

The Daily Escape:

Edworthy Falls, Elbow Pass, Kananaskis, Alberta, CN – 2018 photo by sluis0717

Just when Wrongo was beginning to think we would make it to 2020 alive and in one piece, testimony by the US Intelligence Chiefs had quite a bit to say about how the world could still blow up. This from Booman: (Brackets by Wrongo)

“In a written report and [subsequent] congressional testimony before the Senate Intelligence Committee on Tuesday, the senior members of the United States intelligence community had some interesting things to say. The most important arguments they made directly contradicted their boss, the president.”

They said that North Korea is unlikely to give up their nuclear program, and that Iran is not currently pursuing their nuclear program. Trump is holding a second summit with North Korean leader Kim Jong Un in late February. Last week, Trump said that the two sides are making progress in efforts to fully denuclearize the Korean peninsula.

The Intelligence Chiefs assess that Russia will continue to interfere in our politics and our elections. They think that ISIS is far from defeated. They reiterated what a report released to Congress last week by the Pentagon said, that climate change is a national security threat.

Now, the intelligence community doesn’t always get it right, but Trump is on the opposite side of each of these assertions. More from Booman:

“We’re supposed to have a chief executive and commander in chief who is a customer for this kind of intelligence. Our president is supposed to be the primary customer for these types of assessments.  But that’s not the situation we have in this country right now. At the moment, our president has taken public positions contrary to every one of the assessments…and he’s simply not interested in contrary evidence. He is certainly not interested in being contradicted.”

It’s a huge problem when Trump, who makes the final decisions on what we’re doing geopolitically, is fact-free when it comes to threats to our security. Fortunately, the Intelligence Chiefs seem willing to provide honest threat assessments, and testify about them before Congress.

But, there are people within the administration who support whatever Trump wants. Some are even willing to slant the information they provide to the press and to Congress if it supports the president’s stated position. Trump’s position has been that disruption is at the heart of his geopolitics.

In just the past few weeks, we’ve gotten quite a few things wrong. (h/t Arms Control Wonk)

  • On December 6th, the United Nations General Assembly rejected a US resolution to condemn the Islamic militant group Hamas for violence against Israel. The embarrassing vote, which required a two-thirds majority, was 87 in favor to 58 opposed, with 32 abstentions.
  • On December 12th, Secretary of State Pompeo blasted Iran at the UN Security Council and received no support from US allies for walking away from the nuclear deal. In fact, US allies Britain, France and Germany praised Iran for holding up its end of the bargain.
  • On December 21st, the US barely rounded up more votes than Russia on a Russian resolution at the UN calling for the preservation of the Intermediate-range Nuclear Forces Treaty. The vote was 46 against to 43 in favor, with 78 abstentions.
  • On January 10th, Pompeo, speaking in Cairo, declared, “Let me be clear, America will not retreat until the terror fight is over.” The next day, the front-page headline in the New York Times was “U.S. Begins Syria Withdrawal, Amid Uncertainty Over Strategy.”
  • On January 14th, en route to Saudi Arabia, Pompeo declared he was “confident” and “optimistic” that he was nearing a deal with Turkey on a mutually agreeable exit plan from Syria. Later, Trump tweeted that he would “devastate Turkey economically if they hit Kurds.”

On January 22nd Pompeo spoke to the assembled billionaires at Davos:

“Is this pattern of disruption a force for good or not? I’d argue this disruption is a positive development.”

Most of us would say that’s crazy talk.

The Intelligence Chiefs have done everything except sound an air raid siren about this administration’s foreign policy bungling. There’s no indication that the Senate Republicans have mustered the gumption to act on their alarm.

And now, John Bolton tells everybody that Trump wants to send 5,000 troops to Columbia as part of its failing Venezuela strategy.

In another ominous sign, Pompeo added Elliott Abrams, a neocon who was an actor in the Iran-Contra mess, as a Trump administration special envoy overseeing policy toward Venezuela. Maybe you remember that Abrams was pardoned for his Iran-Contra role.

Just two more neocons, completely lacking in principle, but flush with Trump’s authority to disrupt another part of the world.

Read the report, and then think about how it squares with Trump’s policy.

You’ll agree that this will all end perfectly.

Facebooklinkedinrss

Monday Wake Up Call – January 28, 2019

The Daily Escape:

Bell Island, Franz Josef Land with Eira Lodge in foreground. The lodge is a remnant of Benjamin Leigh-Smith’s expedition in 1880 – 2017 photo by Ilya TiminCC BY-SA 4.0.

The largest gathering of billionaires in the world took place last week at the World Economic Forum’s annual conference in Davos. Vanity Fair reports that they:

“…consume $55 Caesar salads and shark canapés, rub shoulders with Matt Damon, and attend parties that involve “endless streams of the finest champagne, vodka, and Russian caviar, dancing Cossacks, and beautiful Russian models…”

Bloomberg added: (emphasis by Wrongo)

“UBS and PwC Billionaires Insights reports show that global billionaire wealth has grown from $3.4 trillion in 2009 to $8.9 trillion in 2017…The fortunes of a dozen 2009 Davos attendees have soared by a combined $175 billion, even as median US household wealth has stagnated…”

And there was this report from Davos in the NYT by Kevin Roose: (emphasis by Wrongo)

“They’ll never admit it in public, but many of your bosses want machines to replace you as soon as possible. I know this because, for the past week, I’ve been mingling with corporate executives at the World Economic Forum’s annual meeting in Davos. And I’ve noticed that their answers to questions about automation depend very much on who is listening.”

Roose goes on to say: (emphasis by Wrongo)

“In public, many executives wring their hands over the negative consequences that artificial intelligence and automation could have for workers. They…talk about the need to provide a safety net for people who lose their jobs as a result of automation.

But in private settings, including meetings with the leaders of the many consulting and technology firms…these executives tell a different story: They are racing to automate their own work forces to stay ahead of the competition, with little regard for the impact on workers.”

Roose quotes Mohit Joshi, president of Infosys, an Indian technology and consulting firm: (emphasis and brackets by Wrongo)

“Earlier they [large businesses] had incremental, 5 to 10% goals in reducing their work force. Now they’re saying, ‘Why can’t we do it with 1% percent of the people we have?’”

And American executives have come up with new buzzwords and euphemisms to disguise their intent. Workers aren’t being replaced by machines, they’re being “released” from onerous, repetitive tasks.

Companies aren’t laying off workers, they’re “undergoing digital transformation.” They’re being “reskilled”.

A 2017 survey by Deloitte found that 53% of companies had already started to use machines to perform tasks previously done by humans. That figure is expected to climb to 72% by next year. As an example, Terry Gou, the chairman of Foxconn, the Taiwanese electronics manufacturer, who makes iPhones, has said his company plans to replace 80% of its workers with robots in the next five to 10 years.

And Wisconsin just gave Foxconn $4.5 Billion to build a plant and employ 13, 000 workers. Can Wisconsin’s soon-to-be laid-off workers be “re-skilled”, and find employment?

A January 2019 report by the very same World Economic Forum estimates that the 1.37 million workers who are projected to be displaced fully out of their roles in the next decade according to the US BLS, may be reskilled to new viable (similar skill set) and desirable (higher wages) jobs:

“The report shows that, in the US alone, with an overall investment of US$4.7 billion, the private sector could reskill 25% of all workers in disrupted jobs with a positive cost-benefit balance. This means that, even without taking into account any further qualitative factors or the significant indirect societal benefits of reskilling, for 25% of at-risk employees, it would be in the financial interest of a company to take on their reskilling.”

The rest presumably will need to fend for themselves. They will likely rely on your taxpayer dollars to be “reskilled”, or go on government assistance.

The real question isn’t how to stem the tide of automation, it’s inevitable. The question for capitalists and our government is how the financial gains from automation and AI will be distributed, and whether the excess profits corporations reap as a result of layoffs will go in part, to workers, or solely to bigwigs and their shareholders.

Will we create a shared prosperity, or just a greater concentration of wealth?

Time to wake up America! This Fourth Industrial Revolution is underway, and estimates are that it will impact as many as 40% of American workers.

It’s time to understand that the 21st Century American corporation isn’t our friend, as constituted and rewarded. It is the enemy of our society, as they quietly work to eliminate your jobs.

We constantly reduce their taxes. We look the other way when they pollute our environment. We allow them to disproportionately finance our elections.

It’s time for a new Capitalism.

Facebooklinkedinrss

Sunday Cartoon Blogging – January 27, 2019

It took LaGuardia Airport being closed for about an hour before Trump and the GOP crumbled on the government shutdown. Ronald Reagan must be spinning in his grave to see that the Air Traffic Controllers union that he once busted rise up again, and change policy in DC.

Pelosi made Trump cave:

An ancient artifact blocks entrance to Capitol:

It was indeed a great fall:

The bar has been lowered:

The herd is heading to Iowa and New Hampshire:

Davos: Where the rich and the insincere act like something other than profits is important:

Trump’s buddy Roger Stone desperately acts as if all is well:

Facebooklinkedinrss

Saturday Soother – January 26, 2019

The Daily Escape:

Frozen pond, Oak Creek Canyon, north of Sedona, AZ – photo by ballsagna2time

Yesterday, Wrongo posted a comment by Sarah Kendzior who said that the shutdown is a hostile restructuring of government by people who were happy to see the non-military portion of the government weakened. This sounds like an exaggeration until you read that earlier this month, Trump retweeted a Daily Caller article by a purported high-level of his administration, arguing that the work of most federal employees is worthless:

“We do not want most employees to return, because we are working better without them…As one of the senior officials working without a paycheck, a few words of advice for the president’s next move at shuttered government agencies: lock the doors, sell the furniture, and cut them down.”

Maybe, once again, we’ve underestimated Trump and his band of authoritarians.

And everyone can see how disconnected the administration is from working people, despite their protests of populism. On Thursday afternoon, Trump told reporters that grocery stores will “work along” with people who can’t pay for food. Wrongo isn’t sure what happens in your neighborhood, but around here, nobody runs a tab with Walmart, or Stop and Shop. Nobody is holding up the checkout line while the cashier marks a new amount on the shopper’s tab with the store.

And also on Thursday, Commerce Secretary Wilbur Ross appeared on CNBC’s “Squawk Box” to talk about the government shutdown. He apparently didn’t understand why unpaid federal workers would be suffering, since they could just go to the bank and get a loan:

“The obligations that they would undertake, say a borrowing from a bank or a credit union, are in effect federally guaranteed. So the 30 days of pay that some people will be out, there’s no real reason why they shouldn’t be able to get a loan against it…”

Sure they can. And if they had a few bucks left over, they could go in together on a few tumbrels.

The fact that the administration and the GOP-controlled Senate have weaponized a government shutdown is all you need to know about their callousness and cynicism. It’s morally repugnant to use people as pawns. But, as is clear from the quotes above, most of the Trump administration are elites who, for their entire lives, have used average people as pawns for financial gain.

There will never be a better reason to vote all of them out in 2020 than the heartless way they are reacting to the very real problems that they have created for millions of Americans in January 2019.

Ok, time to slow the burn, kick back and try as best we can to shut out all the noise echoing in our minds. It’s time for your Saturday Soother.

Let’s start by brewing a cup of Kenya Ruthaka Peaberry ($19/12oz.) from Sacramento’s Temple Coffee Roasters. It apparently has a resonant finish with notes of dark chocolate and red currant, and undertones of crisp marjoram, if you’re into that.

UPDATE: Apparently, Trump agreed late Friday to open the government for three weeks, without any Wall funding.

Now, settle back in your most comfy chair, and unplug from all screens (except Wrongo’s) and in honor of the Speaker of the House, listen to the John Coltrane Quartet from 1962 doing “Nancy with the Laughing Face”:

Those who read the Wrongologist in email can view the video here.

Facebooklinkedinrss