Category: Capitalism Reform

Monday Wake Up Call – March 23, 2020

The Daily Escape:

Great Wave off Kanagawa – Japanese woodblock print by Hokusai c. 1829. The wave could represent a tsunami of COVID-19 cases, or could it represent the rising of malign intent by Trump towards our democracy?

Are we in the midst of a national emergency or not? Is a tsunami of COVID-19 cases about to inundate America, or not? Let Wrongo answer: It’s a national emergency. When there’s a national emergency, does the federal government let the states take care of the problem? It does not.

Here’s America’s worst excuse for a leader on twitter Sunday afternoon:

He says it’s not the federal government’s job to lead in a national emergency. As Haberman and Baker said in the NYT: (emphasis by Wrongo)

“For years, skeptics expressed concern about how he would handle a genuine crisis threatening the nation, and now they know.”

Any other president, even the weakest, would have acted differently. Despite the fact that his policies are generally pretty standard right-wing Republican, Trump has managed to make a national disaster worse than it had to be.

Now all Americans should know how it feels to be Puerto Rican.

Bloomberg reports that Trump’s directive for governors to buy their own medical supplies to fight the coronavirus ran into a big problem when the federal government outbid them for the products! Earlier that day, Trump said that his administration is not a “shipping clerk” for medical gear that the states require to fight the virus.

Another example from the NYT: (emphasis and brackets by Wrongo)

“…on Saturday {Trump] sought to assure an anxious American public that help was on the way…and that private companies had agreed to provide desperately needed medical supplies to fight the fast-spreading coronavirus.

But Mr. Trump [said] he would not compel companies to make face masks and other gear to protect front-line health workers from the virus….. Mr. Trump said the clothing company Hanes was among those that had been enlisted to start churning out masks, although the company said they would not be the N-95 masks that are most effective in protecting medical workers.”

Trump could simply order companies like Hanes to make them, but instead, Hanes is making masks that don’t actually protect medical personnel. Capitalism @ work!  At a time of national emergency, Trump is letting the market do it, and simply declaring victory.

Another: In the on-going (Sunday) negotiations on the Coronavirus bail-out package, it turns out that Treasury Secretary Mnuchin and the White House are demanding that the relief package include $500 billion to be provided to corporations at the discretion of Treasury Secretary Steve Mnuchin.

The best part is that it permits the Treasury secretary to withhold the names of corporate recipients for up to six months. How is it possible to use taxpayer money for corporate bailouts and demand that taxpayers can’t know who’s received the funds?

Finally, here’s an example where Trump is unhappily, showing leadership. He wants to suspend habeas corpus, the Constitutional right to appear before a judge after arrest, and seek release:

“The Justice Department has quietly asked Congress for the ability to ask chief judges to detain people indefinitely without trial during emergencies — part of a push for new powers that comes as the coronavirus spreads through the US.”

The DOJ is looking for broad authority, including the ability to ask chief judges to detain people and to pause court proceedings during emergencies. It would apply to:

“any statutes or rules of procedure otherwise affecting pre-arrest, post-arrest, pre-trial, trial, and post-trial procedures in criminal and juvenile proceedings and all civil process and proceedings,”

This means you could be arrested and not brought before a judge until they decide that the emergency or the civil disobedience is over. Shouldn’t we be even more careful about granting new powers to the government if we’re in a national emergency?

We can hope that the House will block this nonsense.

We should remember that the US government was founded for the very purpose of solving some rather serious problems that the individual states couldn’t handle. That role of federal leadership has worked for 230+ years, but that doesn’t work for Trump.

You should be asking why.

It seems certain that at some point, Trump will say that the states were unable to solve the virus emergency, so he’s stepping in. He’ll try to use COVID-19 to assume extraordinary emergency powers between now and the election. That’s beyond frightening.

More will die because Trump won’t lead in the fight to contain the Coronavirus. And in the background, he’s busy laying the groundwork for emergency powers.

Wake up Democrats!

It’s time to ask, what are the DC Democrats doing to block all of this?

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Sunday Cartoon Blogging – March 22, 2020

We have a ton of cartoons today, so just a brief comment. Neoliberal economics bears a major responsibility for the pathetic pandemic response by our corporations and government. It encourages efficiency over all other aspects of a complex product/service delivery system. We now see that it is fragile, without the resilience necessary to meet surges of demand/need.

Our CEOs and politicians now think only in terms of equilibrium, when equilibrium is the last thing we need in the middle of a runaway exponential disease process like COVID-19.

We’re seeing how difficult it is to source things like gloves, masks and sterile gowns. The delays procuring those items will pale against the delay in sourcing ventilators and ultimately, a vaccine in sufficient doses to truly stem the tide.

One thing to think about is how nations with authoritarian or collectivist societies have responded to the Coronavirus better than those in the west, where we celebrate the individual, occasionally to the detriment of society. Our way works fine when things are good, but not so well when things turn bad.

What would you expect, given an educational system that doesn’t teach people what “exponential” means?

Finally, imagine Trump if he were FDR right after the attack on Pearl Harbor: Standing in front of Congress declaring: “This Japan thing will go away!” On to cartoons.

Whose responsibility is this?

There’s only one real cure for Trump syndrome:

He’ll never have clean hands:

Sadly, it’s not just his hands that don’t measure up:

Sen. Burr and the others can’t explain their actions. They’re guilty:

 

Let all the people keep the checks, but nothing for corporations:

Dem primaries showed us something:

The core problem for Democrats today:

Work from Home withdrawal setting in:

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We’re In Uncharted Territory

The Daily Escape:

Sunset, Factory Butte, UT – photo by goat_chop56

Blog reader David K. emailed:

“Now, what do we common folk do?  Start our “victory gardens” and shelter in place?  Volunteer to help our local farmers raise food? Hoard?  Wish I had a great idea, because I agree that our leaders don’t have a clue how to respond.”

That gave Wrongo pause. What do those of us who aren’t part of the “smart money” crowd supposed to do, particularly if what we’re facing is a worldwide depression? John Pavlovitz frames the existential issues quite clearly:

What happens if the stores run out of essentials for good?
What if you run out of money to stockpile them?
What if your neighbors stop sharing with you?
What if the government won’t help you?
What might you do then?

Politicians say we’re at war, but as Kunstler says: “At least in wartime, the bars stay open. That’s how you know this is a different thing altogether from whatever else you’ve seen in your lifetime.”

We’re attacked by a novel virus that’s created a completely novel social and economic situation. By definition, we aren’t prepared for an abrupt crash of both our social fabric, and our economic well-being.

Our politicians have no answers, despite most of them having been around for the 2007-2008 Great Recession. The Fed hasn’t done us any favors since then, either.

Last Saturday, Wrongo said that we’re crossing a threshold between what we know and an unseen future. Our traditional systems are no longer capable of keeping society and the economy on an even keel. Nobody really knows how deep and how harsh this will get, but the situation presents two questions:

  • How much disorder will we have to endure?
  • What does the world look like when this thing is over?

All this is happening in an election year, when the entire government and the political parties’ power structures are vulnerable, and could change. We are facing a new reality, for which no one has any answers.

Politics being what it is, the White House and the Congress are trying to work together to come up with solutions. On Monday, Trump gave another press conference on COVID-19. During his talk, the stock market dropped nearly 3,000 points. It was the market’s worst day since Black Monday in 1987.

The smart money was behind Trump in order to get its corporate tax cuts, but now, they’ve voted with their money. And Trump’s starting to look a little bit like Herbert Hoover.

Sen. Mitt Romney (R-UT) floated Democrat Andrew Yang’s idea of giving every American $1,000. He was joined in principle by Sen. Tom Cotton (R-AK). We’ll see if this is just more Republican grandstanding, or if they actually back a real plan of support for working people.

With Trump, you can expect to see bailouts for several industries, including banks, airlines, casinos and cruise lines. Imagine: Casinos are asking for help from the guy who only knows how to bankrupt casinos.

Reuters reports that the US airline industry said that it needs $50 billion in grants and loans to survive the dramatic falloff in travel demand from the COVID-19 outbreak. This is just more socialism for America’s corporations.

Two thoughts: First, $50 billion is higher than the book value of all the airlines combined. Why should they have any of our money? Either Republicans are for free market capitalism, or they should just shut up. Most of these airlines have implemented stock buyback programs when they should have been building contingency funds instead.

Second, this $50 billion should be added to whatever Congress spends on small businesses that are forced to close due to quarantine, or on parents forced to stay home to take care of kids who aren’t going to school anymore. They’re the ones who are really hurting.

We’ve lived through a time of unprecedented affluence. We’ve told ourselves we deserved it all, that we were entitled to all that our country has provided.

But that’s most likely over, and it might not return in Wrongo’s lifetime.

We have to think about what must change if we are to have a functioning society and economy in the decades to come.

The list of all the things that we need to change is far too long to enumerate here. At a minimum, we need to reform capitalism, make health insurance universal and strengthen worker’s rights.

We have to do a better job of sharing the wealth. It we don’t do that voluntarily, our children’s children’s generation will come and fight us for what we have.

To protect our families and their future, we need to become even more active politically in order to make these and other changes happen.

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The Health Crisis Now Coincides With a Financial Crisis

The Daily Escape:

Sunrise, St. Augustine Beach, FL – March 2020 photo by Carl Gill

The WaPo reported that a Coronavirus-sparked oil war sent crude prices down on Sunday by 32.3%. That triggered a forced temporary halt of stock trading on Monday, when the S&P 500 index sank 7% shortly after the market’s opening.

This occurred on the 11thanniversary of the current bull market. But, as Greg McBride, chief financial analyst at Bankrate.com, wrote:

“The uncertain economic impact of coronavirus continues to grip markets, with stocks, commodities and interest rates all dropping sharply. Markets hate uncertainty and there is a ton of it currently in play.”

There is no question that there will be more angry Americans now that a health crisis coincides with a financial crisis. Who they focus their anger on remains to be seen. Trump took credit for each rise in the stock market, so will he take ownership now that it’s tanking?

He’s not a broadly popular president, and this will make him less popular, so fewer people will believe him when he tries to lay the blame on others.

The oil price plunge was triggered when Russia announced on Friday that it would no longer stay within the OPEC+ quotas after April 1st. Saudi Arabia then said it would slash prices for its customers in April. In addition, they hinted at increasing production from the current level of 9.7 million barrels per day to 10 million barrels per day.

This is the start of an oil price war between Saudi Arabia and Russia over market share. But the real target for both may just be the US shale oil sector. US banks and other investors have been fueling the shale oil sector’s growth with hundreds of billions of dollars of loans over the years. And the shale oil producers keep ramping up production, despite it being largely unprofitable. They continue to burn through cash.

Brian Sullivan at CNBC warns us: The US oil industry valued its oil reserves, as collateral for its loans, at $60 a barrel. Today’s price is now about $30/barrel.

By sending some of these shale-oil companies into bankruptcy, Saudi Arabia and Russia are hoping that new money will refuse to support the US shale oil sector. Then production in the US will decline and take some oversupply out of the oil market.

Their timing is impeccable. Oil demand is down due in part to the Coronavirus. Chinese manufacturers are producing less and airlines in particular have less need for jet fuel. If OPEC and Russia increase production, and assuming US production still increases while demand globally is in steep decline, then global markets will be awash in oil.

And what does an oil glut do for Iran, already fighting a severe Coronavirus outbreak, and needing higher oil prices for their own economy?

But no worries! We can count on the competent leadership in the White House. And if that doesn’t make you comfortable, you might ask yourself, “Is this 1929 all over again?”

Maybe not, but if it is, who will be our FDR? In the 1930s and 1940s, FDR spent money on America’s democratic infrastructure. That money gave jobs to people. He created a social safety net, and allowed industry to again flourish.

But in the past 30 years, all the money has gone to our industrial infrastructure and to the rich, through tax cuts and subsidies. The easy money party has helped to pump up both stock prices and asset prices, giving us an ever-growing income and wealth gap.

What happens to the health of the people and to the health of economy between now and November is going to be a huge political concern. There’s always a tension between the best health policy, and the best economic policy.

Trump wants economic policy to win out, but the primary beneficiary of that is industry and the rich.

We should remember that when leaders are seen to be incompetent and/or ARE truly incompetent, they try to divert the voters’ attention. What Trump attempts to do in order to divert our attention, is worthy of discussion.

As of today, the fuse is lit. It’s an election year, and we know that Trump won’t go away quietly.

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Monday Wake Up Call – March 2, 2020

The Daily Escape:

St. Augustine, FL – photo by Wrongo

Hot takes:

First to politics: Joe Biden rolled to a big win in South Carolina, and billionaire Tom Steyer and former mayor Pete Buttigieg both folded their tents. Some in the media say that Biden is once again the front runner, but Sanders’s win in Nevada remains significant, and he remains on track to pick up a lot of delegates in California and Texas.

The real news from South Carolina is that Biden has become the Not-Sanders candidate. For Super Tuesday, Bloomberg essentially replaces Steyer as the billionaire in the race. Super Tuesday results are less than 48 hours away, and after that, we’ll have a real idea of who really remains a viable candidate.

Second, peace in Afghanistan: After 18 years of war, we signed an agreement with the Taliban. The deal does not end the civil war, but it has placed the outcome of the conflict in the hands of the Afghan people. Heather Cox Richardson quotes Laurel Miller, the former deputy and then acting Special Representative for Afghanistan and Pakistan from 2013 to 2017 for the State Department: (emphasis by Wrongo)

 “There’s nothing new in the Joint Declaration signed in Kabul today. It reaffirms existing commitments and it re-states some of US-Taliban agreement. Its purpose is evidently political symbolism.”

She explained: It includes the Afghan government and its opposition in future discussions. It draws down US troops to 8600 people—the number who were there when Trump took office, and promises “all” will be gone within 14 months. The 8600 drawdown has long been planned. In exchange, the Taliban will “not allow any of its members, other individuals or groups, including al-Qa’ida, to use the soil of Afghanistan to threaten the security of the United States and its allies.”

Miller’s conclusion:

“The Taliban got a lot. It got its main goal—a clear timeline for US withdrawal—and fast removal of sanctions and prisoner releases. The US got the power to decide whether “vaguely-stated conditions are met, so that in reality can withdraw when it chooses—will be political not military decision.” The Afghan government didn’t get much, but “this deal wasn’t really about the Afghan government.”

Trump, America’s Man of Peace. This looks a lot like what he did in North Korea, a PR moment that resembles a deal, but turns out not to be much of a deal.

Finally, the WaPo features a new report published by the Manhattan Institute, a conservative think tank, that clearly demonstrates the disconnect between the “great” economy described by economists, and the economy experienced by regular people. This chart shows the problem:

 

From the article (emphasis by Wrongo)

“In 1985, the typical male worker could cover a family of four’s major expenditures (housing, health care, transportation, education) on 30 weeks of salary….By 2018 it took 53 weeks. Which is a problem, there being 52 weeks in a year.”

Lead study author Oren Cass (formerly Mitt Romney’s domestic policy director) calls this calculation the Cost-of-Thriving Index. It measures the median male annual salary against four major household expenditures:

  • Housing: the annual rent for a three-bedroom house in the 40th percentile of the local housing market
  • Health care: the annual premium on a typical family health insurance policy
  • Transportation: the average cost of owning and operating a car driven 15,000 miles per year
  • Education: the average cost of tuition, fees, and room and board at a four-year public college

In 1985, the typical male breadwinner could cover those costs, and still have 22 weeks of pay left for other family needs, such as food, clothing, entertainment and savings. Today, the typical salary doesn’t even cover the four basics.

They also looked at female earners. The typical woman needed to work 45 weeks to cover the four big annual expenses in 1985. Today she needs 66 weeks. The most astonishing conclusion is that it was easier for a female breadwinner to provide for her family in 1985 than it is for a lone male earner today.

Remember that the study comes from a conservative-leaning institute. Here’s Cass:

“You can have a rising GDP….but if it’s in the context of collapsing families and people no longer getting married and declining fertility rates and so on and so forth, you haven’t necessarily enhanced well-being.”

Wake up America! The GOP has undone 50 years of economic gains that produced a robust middle class and vastly more economic and social justice than the country had ever known before, or since.

They have chosen candidates whose real agenda was to assist the corporatocracy in fleecing the very people who voted for them. Their candidates ran on issues like the Second Amendment, abortion, gay marriage and immigration. And then, the GOP shifted the tax burden onto the middle class. They deregulated industry and socialized corporate losses, eliminating any downside risk for banks.

We can begin undoing these things by electing Democratic majorities in the  House and Senate in November.

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Saturday Soother – Acquittal Edition

The Daily Escape:

View from the top of Mt. Baden Powell in the Los Angeles National Forest – February 2020 photo by David Dodd

(Sunday cartoons will appear on Monday)

Is the game of investigating Trump over? What are the arguments for continuing to pick at this wound? This is a political calculation only. It no longer matters who said what in Ukraine, regardless of the damage caused by Trump. That ship has sailed.

It’s time to focus on the 2020 election, particularly on the House and Senate races. Focusing on winning those elections, and particularly on holding the House while winning a majority in the Senate, requires that the Democratic Party deal with its current schism. The Party is messily divided between social liberals who are for reform of capitalism along with Medicare for All, and free college, and moderates who wish to tack back towards the middle of the road.

The question that Democrats have to deal with is which of these two poles can make it a majoritarian party in 2020 and beyond?

This dilemma faced the Republicans only a short time ago, when the Tea Party threatened to split the GOP in two. Those cracks remained evident until Trump came along and united them in a way that today makes them seem more like a cult than a political party.

In some ways, Democrats are like the American Whig party was in the early 1850’s, when it could no longer bridge the gap between the Whigs of the northern industrial states and the Whigs of the southern farming/slavery states. It was an irreconcilable dilemma, and in short order, the party simply ceased to exist, only to re-emerge as the Republican Party in 1856.

The Democrats have been trending this way since LBJ forced southern Democrats to vote for/against the Civil Rights Act in 1964 and the Voting Rights Act of 1965. Later, the formation of the Democratic Leadership Council in 1985, founded in part by Bill Clinton, pushed the Democrats rightward.

The “Left Party” that is trying to emerge from the current shambles of the Democratic Party could be more properly defined as a reactionary movement. An attempt to return to the days of the New Deal and the rise of the middle class.

In that sense, Wrongo is a New Deal Reactionary. The New Deal was a good deal for most of us. We should want our New Deal back again.

The question on the table is: Which half of the divided Democratic Party should New Deal Reactionaries support? Is it the Sanders/Warren half, or the Biden/Bloomberg/Buttigieg half of the Party? If it’s Sanders, can we get a New Deal Revival, but no Recreational Socialism to go along with that?

Can the moderate/ConservaDems realistically be counted on to bring back the New Deal? We see that ConservaDems are willing to strap on their running shoes and do 3 miles in the morning, because “no pain no gain”. But somehow, once at work in the House or Senate, they claim that the hardship doesn’t make sense economically, so why even try?

The answers to these twin questions: Whether the Party can be re-united similar to the way Trump united the GOP, and which half of the Party should attempt that unification in November 2020, will determine the arc of our democracy for decades to come.

It was a terrible week, and now we need a break from “all acquittal, all the time”. That means it’s time for our Saturday Soother, a brief window when we can forget about the outside world and concentrate on breathing slowly and relaxing mind and body.

Let’s start by brewing up a vente cup of El Salvador Finca el Cerro Natural ($22.99/12oz.). The roaster, Virginia’s Red Rooster Coffee says it tastes of strawberry and tangerine zest with a viscous mouthfeel.

Now, grab a seat by the fire and listen to Anna Netrebko perform “Solveig’s Song” from Peer Gynt’s Suite No.2, live with the Prague Philharmonia conducted by Emmanuel Villaume in 2008:

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

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Monday Cartoon Blogging – Iowa Caucuses Edition, February 2, 2020

We had a very consequential week, followed by a consequential weekend. Sunday was both the Super Bowl and Groundhog Day. It was also a very rare eight-digit palindrome when written as 02/02/2020, the first since 11/11/1111.

We had the “deal of the century” that isn’t, and the Chiefs won the Super Bowl. But the Constitution died.

And so did Kobe Bryant and his daughter, along with seven others. It doesn’t take a basketball fan to feel shocked and saddened when a Dad and his 13-year old daughter are suddenly killed. Of course we know about Kobe Bryant, a basketball genius who, in his retirement, helped young people and championed women’s basketball. His life story was complicated, but if you think that people can work hard and redeem themselves, Kobe Bryant is your prime example:

The movie that’s always on repeat:

Peace? Or pieces?

Brexit happened, the UK is now going it alone:

Failing to call witnesses shows that the GOP’s loyalties have shifted:

Beauty is in the eye of the beholder:

Brown paper bags have replaced the MAGA hats for GOP Senators:

With Iowa voting tomorrow, it’s important to know your enemies:

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More About The Virtue of Exciting Candidates

The Daily Escape:

Mt. Assiniboine, Provincial Park, BC, CN – 2019 photo by Talhanazeer. Assiniboine is the pyramid-shaped mountain on the left.

When Wrongo thinks about the Democratic primary candidates, he feels a bit like when he was a breeder of Havanese dogs: “Don’t get too attached to any one of them–we’re only keeping one.”

At the end of the day, we’ll only have one candidate. The question is which is the keeper?

Yesterday we asked: which candidate excited you? Judging by crowd sizes in Iowa, Sanders, Warren and Buttigieg have generated excitement, while Biden has not:

“Mr. Biden has a lot to prove here. I’ve attended some of his town halls and rallies, and they’ve been lackluster, his speeches dull and meandering, and his crowds comparatively small. I’ve been to memorial services that are more exciting. I certainly hope mine is.”

That quote is from Robert Leonard, the news director for the Iowa radio stations KNIA and KRLS. More from Leonard:

“Who is going to get an enthusiastic turnout caucus night? Bernie Sanders will. His support is strong. We’ll see if he can increase it….

Elizabeth Warren has fallen in the polls, but she will have a big turnout caucus night. Her on-the-ground organizing is terrific and her supporters unwavering…..

Pete Buttigieg will also have a big turnout. Watching his several-blocks-long parade of supporters file into the Liberty and Justice Dinner last fall in Des Moines gave me goose bumps…..”

Leonard finishes with this:

“On caucus night, given the soft support I see, if the weather is bad Mr. Biden’s supporters might not come out. It might also depend on what’s on TV….For the other candidates, if their supporters walked outside, slipped on the ice and broke a leg, they still would crawl through snow and ice to caucus.”

He’s alluding to the x-factor, the charisma, the excitement that a candidate creates in voters, and claims that in Iowa at least, Sanders, Warren, and Mayor Pete are showing some of that.

The first thing that most of us want is relief from the Trump assault. In the general election, that starts with telling people the damage assessment, and a plan of repair. The nominee has to say that our government and democracy are in tatters and need to be stitched back together. Constitutional checks and balances have been nearly destroyed by the Republicans.

Maybe we need Medicare for all, free college tuition, and the rest of the progressive agenda, but first, we need to triage our democracy.

To win the presidency, we need to take back Pennsylvania, Michigan and Wisconsin. Are the voters in those three critical swing states ready to sign on to rebuild our social safety net, reform health insurance, and raise taxes on the rich and corporations? Hell yes.

Trump’s 2020 plan is to pump up the Dow while keeping unemployment at historic lows. He’s done that with a $1.5 trillion tax cut without any plan to pay for it. He’ll tout his new “trade deal” with China. He’ll mock and belittle the Democrats and their nominee. Meanwhile, Trump has no health plan at all!

Mitch McConnell’s plan is to make sure Trump is acquitted at all costs, to continue packing the courts, and blocking any meaningful legislation coming out of the House.

What’s the Democratic Party’s 2020 plan? The proposals by the progressive Democratic candidates have merit. Their goals are the right ones for the country and the planet. But, those plans will take several administrations to fully implement. Few voters fully understand the details of how to pay for Medicare for all. Moreover, they absolutely are worried about having their private health insurance taken away. That’s what most Americans have, so that has to be a big concern for Democrats in 2020.

Which of the current flock of Democratic candidates have what it takes to unite and lead the Party to a 2020 victory? Which nominee will have coattails to swing the Senate, hold the House and add to the Party’s roster of statehouses?

The 2020 election will turn on whether individual voters see the Democratic Party’s nominee as a heroic savior of the country, or less of a leader than the execrable Trump.

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The Future: Will It Be Just More of The Past?

The Daily Escape:

Wrongo said he wouldn’t look back, but has reconsidered. It’s time to declare war on those who refuse to use facts or science. Think about what these true believers in either faith or ideology have brought us:

Will we continue on this road, or will we make a turn for the better? Will 2020 usher in a better decade than the one we just closed? Doubtful, unless each of us stand up and do what we can to make a difference.

Those who think Trumpism is so new and novel should remember that Norman Lear made a hit TV show about it in the early 1970s. Since then, many American white people have taken a dark turn: They would rather have Trump’s government enforce a whites only voting policy than put in the work required to make our system benefit everyone equally, while decreasing the cut taken by the corporate class.

Building this better society requires hard cognitive work. So far, Americans aren’t up to thinking about solutions beyond “Build that wall!”

Another example: 50% of white people are actively against government bureaucrats making their health care decisions. They insist that something that important should only be decided by employer HR departments and multinational insurance companies.

They’re perfectly fine casting their fates with insurance bureaucrats. Even if those corporate bureaucrats deny their care most of the time. Worse, they’re told by the media that they shouldn’t pay any more damn TAXES for health care when they could be paying twice as much in premiums to insurance corporations.

Remember the song In the year 2525? “If man is still alive…”

That’s 505 years from now. What do you think the odds are that we’re still here?

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Monday Wake Up Call – November 25, 2019

The Daily Escape:

Delicate Arch, Arches NP, Moab UT – 2019 photo by rallymachine

Wrongo learned last week that the GOP thinks he’s just another agent of Soros, like most other non-Republicans. Sadly, the mailbox didn’t contain his weekly globalist payoff check, so we’re still stuck writing this blog.

We should be framing the debate about 2020 not in terms of policies, but by asking the question Ronald Regan asked: “Are you better off today than you were four years ago?” For the Evangelicals who wished for a right-wing Supreme Court, the answer is “yes”. For the 1%, and corporations who were awarded a gigantic tax cut, their answer is a strong “yes”.

But for most Americans, after four years, the answer isn’t yes, it’s a hard “no”.

Yes, the unemployment rate in the US is the lowest it’s been in 50 years. More Americans have jobs than ever before. Wages are climbing, but people tell a different story: Of long job hunts, trouble finding work with decent pay, or predictable hours.

How do we square the record-long economic expansion and robust labor market with the anecdotal stories we all hear? Quartz reports on a new jobs index that shows a way to make sense of both stories. Researchers at Cornell, the University of Missouri, Kansas City, the Coalition for a Prosperous America and the Global Institute for Sustainable Prosperity, working together:

“…..unveiled the US Private Sector Job Quality Index (or JQI for short), a new monthly indicator that aims to track the quality of jobs instead of just the quantity. The JQI measures the ratio of what the researchers call “high-quality” versus “low-quality” jobs….”

They developed a ratio of higher-wage/higher-hour jobs versus lower-wage/lower-hour jobs, and tracked it back in time using federal data. The Index reveals that job quality in the US has deteriorated substantially since 1990, and even more so since 2006.

Overall, the JQI found a shift from US high-wage/high-hour jobs to low-wage/low-hour positions. Since 1990, the US has been creating an overabundance of lower-quality service jobs. The JQI reveals that 63% of the production and non-supervisory jobs created over the past 30 years have been in low-wage and low-hour positions. That’s a marked change from the early 1990s, when nearly half of these jobs (47%) were high-wage.

Since 1990, America has cumulatively added some 20 million low-quality jobs, versus around 12 million high-quality ones. We now create more bad jobs than good. This helps explain why our GDP growth isn’t nearly what economists say we should expect from a full-employment economy.

Also, the poor jobs come with fewer hours worked. People in low-quality jobs clock 30 hours a week. Compare that to an average 38 hours a week for high-quality jobs. That seven-hour gap doesn’t sound like a lot, but it adds up to about 480 million hours per year.

Those unworked hours represents the equivalent of about 12 million jobs forgone each year. A key reason is that employers limit worker’s hours to keep from having to pay benefits.

Overall, the growing total of jobs that offer lower-than-average incomes means that job growth, as reflected by a super-low unemployment rate, provides less spending power than in the past. The economy is getting a lot less bang for its buck.

Maybe the Democrats’ presidential candidates should base the campaign on asking the Ronald Regan question again in 2020.

Time to wake up America! Look behind the headlines. Ask the candidates what they plan to do about the fact that our economy isn’t providing quality jobs. The $15/hour wage, although useful, isn’t enough to grow the economy.

To help you wake up, listen to Tones and I, a 19 year-old Australian singer-songwriter who has the number one global hit “Dance Monkey”. Today we’re featuring her song called “The Kids are Coming”. This song is sending an important message and portrays the reality of our time, that young people believe we’ve been poor stewards of their futures:

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

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