Category: Corporatism

A Strategy for 2020 Emerges

The Daily Escape:

Fall in Hopkinton, MA – November, 2018 photo by Karen Randall

The 2020 election campaign has already started, regardless of whether we are ready.

“Big Idea” strategies are in the air. And the large group of potential Democratic presidential candidates are being discussed.

And we no longer have to chew on the failure by Democrats in 2016. We can now talk about lessons learned in the 2018 midterms, and how they may apply in 2020. Wrongo wants to highlight three Democrats who won in deeply Republican districts. Max Rose, who won on Staten Island in NYC; Kyrsten Sinema, who won the open Senate seat in Arizona; and Lauren Underwood, who won a Congressional seat in Illinois.

Rose won a district that went heavily for Trump in 2016. He beat a long-time incumbent Republican. He did it by asking for a chance to reshape the fortunes of working people. From the NYT:

He offered a simple, unifying message that was progressive in substance but relatively neutral in its delivery: that the system is rigged to benefit special interests, that the little guy is getting stiffed over and over, that we need better infrastructure and stronger unions.

Demographic change helped. Rose’s district covers parts of Staten Island and Brooklyn, where Millennials who have been priced out of living in Manhattan and trendy Brooklyn are now locating.

Kyrsten Sinema’s story is different on the surface, but similar in what got her elected. A three-term member of Congress, she campaigned on her biography. She was homeless for three years as a child. Sinema is an openly bisexual former Green Party activist who moved to the political center.

Sinema promised to be a nonpartisan problem-solver. She campaigned on health care and protections for people with pre-existing conditions. Sinema treaded lightly on immigration, but probably looked pro-immigrant versus her opponent Martha McSally, another member of Congress who was very anti-immigration. 2.1 million Latinos live in Arizona, and after Trump’s visit in October, there was a spike in Latinos returning early ballots. Most Arizona residents vote by mail, and many Latinos voted for Sinema.

Lauren Underwood won an Illinois Congressional seat held in the past by the infamous Denny Hastert. The 32-year-old African-American nurse, unseated four-term Rep. Randy Hultgren in a district that is 86% white. The district was gerrymandered after the 2010 census to make it an even safer Republican seat. She won by stressing health care for all Americans.

These three candidates were successful in traditionally Republican places. They each had great personal stories. They each ran as problem solvers who wanted to help working families. This shows there are two threads that mattered in 2018: The candidate, and a message that addressed the things that were alienating people in their districts.

If we widen out our view to America today, alienation is behind the rise of Trumpism, and the rise of populism across the world.

The leading cause of people’s alienation is economic inequality.

Candidates can win as centrists if they are willing to fight economic inequality, because everybody knows that the system is rigged to benefit special interests.

Progressives can also win on economic inequality, because the largest divide in our country is between the 98% and the 2%. This idea can unite us, because nowhere in the US do the capitalists outnumber the salaried and hourly wage people.

Remember what Franklin Roosevelt said in his acceptance speech: (emphasis by Wrongo)

Throughout the nation men and women, forgotten in the political philosophy of the Government, look to us here for guidance and for more equitable opportunity to share in the distribution of national wealth… I pledge myself to a new deal for the American people. This is more than a political campaign. It is a call to arms.

Today, Democrats need working people to vote for them if they want to win decisively. But since they govern like mainstream Republicans when in office, they must change to an FDR-like call to action.

It is possible to build voting coalitions that pick off a few red states in 2020. In fact, the midterm results were a terrible leading indicator for Trump in 2020. Without Hillary heading the ticket, Midwest states like Michigan and Wisconsin appear to be returning to Democrats. Pennsylvania is already back.

The Dems need to convince voters that governing the country in a manner that benefits everyone is a better idea than governing the country in a manner that benefits only a few.

The potential new votes for Democrats by following this strategy is largely the pool of non-voters. They are the majority in this country, and they are alienated.

They also outnumber the small percentage of persuadable Republican voters.

Nominating high quality candidates and fighting alienation are the keys to success in 2020.

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Trump Says Google Is Against Him

(Wrongo is taking off for the rest of the week. So unless SHTF, the next post will be a Wake-Up Call on Tuesday after Labor Day. We all need a break, and late August is usually pretty slow as far as news goes. Try to enjoy the heat wave, or whatever your weather brings.)

The Daily Escape:

Detail from above the doors of Strasbourg Cathedral, Strasbourg, FR – 2008 photo by Wrongo. Strasbourg is one of Wrongo’s favorite European cities.

Remember the dog in the movie “Up” who was constantly distracted, yelling “Squirrel!”, all the time? That’s the media when Trump tweets.

When he was first elected, we had the daily squirrel. Now we’ve achieved hourly squirrel. The WaPo reports that:

Early on Tuesday morning, President Trump accused Google of rigging search results for “Trump News” against “Republican/Conservative & Fair Media,” and wondered, “Illegal?” Then, he promised that the situation would be “addressed.”

This is today’s Conservatism in action: A constant search for new conspiracy theories to advance their agenda of victimhood. Trump was repeating a claim that first appeared in the conservative news site, PJ Media, which published a piece with the headline, “96% of Google Search Results for ‘Trump’ News Are from Liberal Media Outlets.”

Google, naturally, denied Trump’s accusation. According to Google, the rankings are supposed “to promote original journalism, as well as to expose users to diverse perspectives.”

Google News results are ranked on a variety of factors, and the results are personalized to an extent. Many factors contribute to their results, including the “freshness” of content, and the extent to which it contains original reporting, as opposed to commentary on the news.

Wrongo’s experience with Google shows that they constantly down rank sites by changing their algorithms.  Last year, there was a big dust-up when Google changed its algorithms to promote main stream media and demote independent outlets. “Deemed to be leftie” sites like the Wrongologist have taken traffic hits due to Google’s downgrading non-MSM sites in their search rankings.

But, Trump isn’t completely wrong.

Facebook has a partnership with the Atlantic Council to help FB work on deleting what they call “inauthentic content”. The Atlantic Council is a NATO-backed think tank. Its board includes people like Henry Kissinger, Michael Morrell, the former acting CIA Director, and Gen. Michael Hayden. It is funded by the UAE, the Abu Dhabi National Oil Corporation, Chevron, and a long list of other corporations.

If you use Facebook, do you really want this cast of characters controlling what you see, or do not see? Do you trust them with creating your news feed?

But it could mean much more than that. No one is sure what methodology FB is using. And that could have serious First Amendment implications.

There is a lot here to argue about on both the right and the left. We’ve tumbled to the fact that in the US, companies can do much more than the government regarding censorship. Is this a strength or a weakness?

The First Amendment was originally an Anti-federalist addition to the Constitution designed to contain federal power, giving an equal chance to citizens to organize and publicize resistance to an autocratic regime.

It’s more worrisome that Facebook is working with the Atlantic Council to develop rules about what is false news than if the Atlantic Council was working with the US Government to do the same thing. Why? Because every four years, the government is subject to recall by voters.

The big question: Is the Atlantic Council/Facebook agreement a permitted form of private/government censorship? Is it a way to circumvent the First Amendment?

After all, these are private sector organizations. They can take any political perspective they want, just like FoxNews, and its parent, the News Corporation do every day. Since Citizens United, we call that the right of a corporation to Constitutionally-protected free speech.

There’s an ongoing petition at White House.gov to replace Facebook, Google, and Twitter’s “community standards” with First Amendment protections. No worries, nothing will come of that.

One way to look at this is: If you don’t like Google because you think it’s “biased”, then don’t use it. And if Trump and his fellow travelers what a search engine that always places them first, why don’t they simply build one, and see if the “market” makes it a success?

At the end of the day, the important question is how to ensure that the public cannot be forced by both private as well as public interests to find and read information from only a short list of approved providers.

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Saturday Soother – August 18, 2018

The Daily Escape:

The Kimberley, Western Australia

Anything happen while Wrongo was away? Seems like it was pretty much business as usual: Trump takes away Brennan’s security clearance, Manafort’s case goes to the jury, bridge disaster in Italy, and Turkey’s currency fell again.

But, on Wednesday, Sen. Elizabeth Warren (D-MA) introduced the “Accountable Capitalism Act” in the Senate. She then set out her logic in a Wall Street Journal op-ed, which drew the usual Neanderthal responses from America’s capitalists.

Warren notes that as recently as the early 1980s, conservative groups acknowledged that corporations were responsible to employees and communities, as well as to shareholders. This is a good time to mention that there is no legal obligation to “maximize shareholder value”. The Supreme Court has never made a decision on it, nor has Delaware, the state where most large companies are incorporated.

Warren, from her bill:

But in the 1980s, corporations adopted the belief that their only legitimate and legal purpose was “maximizing shareholder value.” By 1997, the Business Roundtable declared that the “principal objective of a business enterprise is to generate economic returns to its owners”.

More from the bill:

This shift is a root cause of many of America’s fundamental economic problems. In the early 1980s, America’s biggest companies dedicated less than half of their profits to shareholders and reinvested the rest in the company. But over the last decade, big American companies have dedicated 93% of their earnings to shareholders.

Warren’s point is that corporations have special privileges under our laws. Those privileges should warrant that corporations also have special responsibilities.

That’s not a completely new idea, it was the point of the New Deal regulations. FDR wasn’t an economic revolutionary – he was a member of the elite who saw plenty of room in America for himself and his friends. He understood that the pure capitalism of his time would destroy both the elites and the country if it didn’t change.

So FDR saved capitalism by making it more equitable and less predatory. His plan worked until the 1980’s. But now, the Republicans want to take us back to the 1920s.

Capitalism again needs to be changed/saved, and Warren is taking a small step to do just that. She wants to significantly transform shareholder rights to force corporations to have the social responsibility that comes with personhood, as well as the personhood rights already generously provided to them by the Supreme Court. More from Warren:

My bill also would give workers a stronger voice in corporate decision-making at large companies. Employees would elect at least 40% of directors. At least 75% of directors and shareholders would need to approve before a corporation could make any political expenditures. To address self-serving financial incentives in corporate management, directors and officers would not be allowed to sell company shares within five years of receiving them—or within three years of a company stock buyback.

Warren knows that Corporate America is in love with share buy-backs. Warren seems to accept William Lazonick’s observation that:

 …since the mid-1980s net equity issues for non- financial corporations have been generally negative, and since the mid-2000s massively negative.

In the modern era of CEO-kings, owners take more money out of corporations in the form of buybacks and dividends than they put in via new investments.

Even if her bill goes nowhere, Warren is educating those who believe that “maximizing shareholder value” is enshrined in civil law. Warren, along with a few progressives, continue to set much of the agenda for whoever wins the 2020 Democratic nomination.

OK, time to cruise into the weekend, wearing your flip flops. Time to shut out Omorosa and Trump.

Time for your Saturday Soother. Let’s start by brewing up a strong cup of Motozintla Caiaphas Mexico coffee ($14/12 oz.) from Patria Coffee in Compton CA. There is a feel-good story about the brewer, Geoffrey Martinez, here.

Now, settle back in an air-conditioned room and remember Aretha Franklin. Wrongo is reminded of the Steely Dan lyric from 1980: “Hey nineteen, that’s ‘Retha Franklin, She don’t remember the Queen of Soul.” The singer laments that his too-young girl friend has no idea who Aretha is. Well, everyone knows who she is today.

Aretha was many things, but few know that she occasionally performed opera. Here is Aretha at the Grammys in 1998, filling in for Luciano Pavarotti at the last minute when he was sick, and singing “Nessun Dorma”. She clearly doesn’t have the breath control of true opera singers, but it’s still a riveting performance.

Wrongo can’t embed the video he wants you to see, and all of the other YouTube videos of Aretha’s “Nessun Dorma” videos are for some reason, blocked today, so click here.

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Monday Wake Up Call – August 13, 2018

(Wrongo will be taking the next few days off. He has blog fatigue, and also needs to work on some deferred maintenance here on the fields of Wrong. He’ll be back later this week, unless events require him to jump back in sooner.)

The Daily Escape:

Abandoned house, Wasco, OR – 2018 photo by Shaun Peterson.

We wake up today to Yanis Varoufakis, the former finance minister of Greece’s, review of “Crashed: How a Decade of Financial Crisis Changed the World” by Adam Tooze posted in The Guardian. Tooze is an economic historian at Columbia University in NYC.

This isn’t a review of Tooze’s book, which sounds fascinating. Rather, it’s a meditation on one of Varoufakis’s ideas in his review of the book. Varoufakis says: (emphasis by Wrongo)

Every so often, humanity manages genuinely to surprise itself. Events to which we had previously assigned zero probability push us into what the ancient Greeks referred to as aporia: intense bafflement urgently demanding a new model of the world we live in. The financial crash of 2008 was such a moment. Suddenly the world ceased to make sense in terms of what, a few weeks before, passed as conventional wisdom – even McDonald’s, for goodness sake, could not secure an overdraft from Bank of America!

Tooze focuses on the causes of the Great Recession in 2008, and the implications for our 10-year long economic recovery. He observes that neoliberalism’s mantra about markets had to be shelved to save the US economy: (emphasis by Wrongo)

Whereas since the 1970s the incessant mantra of the spokespeople of the financial industry had been free markets and light touch regulation, what they were now demanding was the mobilization of all of the resources of the state to save society’s financial infrastructure from a threat of systemic implosion, a threat they likened to a military emergency.

We have no idea where the current aporia will take us, particularly since this “moment” has already lasted 10 years, and the hard-won economic progress may be easily reversed. Varoufakis continues:

Moments of aporia produce collective efforts to respond to our bewilderment. In the late 18th century, the pains of the Industrial Revolution begat free-market economics. The crisis of 1848 brought us the Marxist tradition. The great depression produced both Keynes’s General Theory and Friedman’s monetarism.

We are clearly at a point of intense bewilderment. What direction is correct for our economy and our society? The concept of aporia may explain why no real solutions have emerged in the past 10 years.

Tooze thinks that the world economy today is at a similar point to where it was in 1914. That is, we’re headed to a global war based on the competition of the advanced economies for resources (this time, it’s markets, water and energy), while the Middle East is at war, competing to determine which variant of Islam will be transcendent.

Varoufakis thinks we are more likely to be where we were in 1930, just after the crash. Since 2008, like back then, income inequality has continued to grow, and we have a potential fascist movement in the wings. Varoufakis asks if today’s politicians have the vision, or the ability, to corral corporatist power on one side, and the emerging nationalist movement on the other.

We’re into the post-2008 world, one in which the owners of society, the largest corporations along with the international capitalists, portray austerity as our only answer. They stress the need for continued globalization and the upward transfer of wealth via tax cuts as the best chance to survive and prosper after the 2008 crash.

This is global capitalism at work: Continuing to extract all the wealth that it can in every economy with a compliant government.

People are getting near a breaking point. They want a better life, and they want to regain political control. The challenge for capitalists and their politicians is: Can they continue to distract the base, keeping them compliant with corporatism and the financialization of our capital markets?

Capitalism ought to fear nationalism, because a nationalist movement could easily rally the poor and the middle class against Wall Street and corporate America. But, for the moment, capitalism seems to be stirring the nationalist pot. To what end?

Whether a fight against Wall Street and Corporatism will emerge, whether it will evolve into a fascist-style rallying cry remains to be seen.

We’re too early in this iteration of aporia to know or to see where we are going clearly. We need an alternative to today’s global capitalism because the track we’re on could easily turn the world into a gigantic Easter Island-like landscape.

What alternative to today’s capitalism (if any) will develop? Will ordinary people have some say in the alternative?

Stay tuned.

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Send Establishment Democrats to the Bench

The Daily Escape:

City Hall Subway Station, NYC – via @themindcircle

We live in disorienting times. Disorienting in that our society, and our values, are in motion. We are no longer anchored by social mores, beliefs, or any shared vision of the future. Our politics are evolving as well. We can’t simply blame Trump, or those who elected him for taking us to this scary place. The bipartisan consensus that’s ruled this country since the 1940s — neoliberal domestic policy, and neoconservative foreign policy ─ no longer produces the same results for our citizens that it has produced since the Eisenhower era.

Establishment Democrats bear some of the blame. And looking forward to the mid-terms and beyond, they have failed to do the simplest work — forming a worldview, then persuading others about their vision, and the steps to achieve it.

We can also blame establishment Republicans, but they have collapsed. The new right is much farther right, more authoritarian, and whiter. And who would have thought they would be the pro-Russia, anti-FBI, anti-DOJ, and (maybe not a complete surprise), the pro-police state party?

History shows that when society turns like this, the establishment parties can disappear, as did the Federalists and the Whig parties. And when one party changes, the other must as well. After Lincoln, neither the Republicans, nor the Democrats, were the same parties.

Perhaps it’s time to take these words in the Constitution to heart:

…to secure these rights, Governments are instituted among Men, deriving their just Powers from the Consent of the Governed…

Therefore, if the Dems are to win back the hearts and minds of the people, regardless of what the banks and corporations want to do, Government must be the advocate for the People.

That requires that our political parties confront the banks, corporations, military contractors, and the other oversized creatures that feed at the government trough.

Is that something that the establishment Democrats (Wrongo likes calling them the “Caviar Dems”) are willing to do? They used to champion social and economic justice, but not so much today. Today, they follow the same neo-liberal economic policies that Republicans champion.

And with few exceptions, they are as neo-conservative on foreign policy as any Republican.

Republicans have undergone a different mutation. They celebrate the globalized economy, and support the domestic gig economy as a means of growing corporate profits. They still celebrate Christian values, so controlling Supreme Court appointments is their great achievement, along with ruinous tax cuts.

America’s corporate tax revenues are going down, while social and infrastructure costs keep rising. So far, under both parties, government has continued to spend money it doesn’t have. It borrows, and pretends that everything is under control.

Now, after 10 years of economic expansion, we continue to pile up deficits. What’s going to happen in the next recession? The truth is, we are poorer, and weaker, as a country than we think. But few politicians are willing to help us face reality.

We see both Bernie Sanders and Alexandria Ocasio-Cortez, the Democratic nominee for Congress in NY, describe themselves as socialists. But, in fact, that’s not what they are. Merriam-Webster defines socialism as:

Any of various economic and political theories advocating collective, or governmental ownership and administration of the means of production and distribution of goods.

Obviously, they hope to take over the corporate-friendly establishment Democratic Party, but if you call yourself a socialist, then, at a minimum, you need to advocate for government ownership of the means of production, i.e., industry. You’re only a socialist to the extent that you advocate that.

Will Bernie or Alexandria nationalize General Motors, Apple, or ExxonMobil? No.

Even advocating for “Medicare for all,” isn’t socialism. Neither Medicare, nor other single-payer programs like Medicaid, are really socialized medicine. No one is advocating for an actual government takeover of hospitals, or turning doctors into government employees. If they really wanted socialized medicine, their cry would be “VA for all,” not “Medicare for all.”

Sanders and Ocasio-Cortez are social democrats. In a social democracy, individuals and corporations continue to own the capital and the means of production. Wealth remains produced privately.

But taxation, government spending, and regulation of the private sector are much more muscular under social democracy than is the case under today’s neo-liberal economic system.

Joel Pett has a great illustration of the difference between Sanders/Ocasio-Cortez and Republicans:

It’s time for the Dems to change direction. Carry the “Medicare for all” banner proudly. Work to end income inequality. Work to add jobs for the middle class.

Send the establishment Democrats to the bench.

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Sunday Cartoon Blogging – July 29, 2018

They found water on Mars. It appears to be salt water. Maybe we’ll build a giant desalinization device, and a few survivors of this hell on earth can give a fresh start to humanity on Mars. Also, Russian scientists found nematodes in Siberia that have been frozen for nearly 42,000 years. With climate change, they were visible to scientists. A few came back to life in the lab:

After being defrosted, the nematodes showed signs of life, said a report today from Yakutia, the area where the worms were found. ‘They started moving and eating.’ One worm came from an ancient squirrel burrow in a permafrost wall of the Duvanny Yar outcrop in the lower reaches of the Kolyma River….Another was found in permafrost near Alazeya River in 2015, and is around 41,700 years old….They are both believed to be female.

Both of those news items are more believable than much of what we hear from Washington, DC these days. For example, Trump’s speech to the Veterans this week included his caution about believing the news media. That led to this cartoon by Darin Bell:

And consider the gloating about “historic growth” in GDP by Trump. John Harwood schools us on the data:

If you think that’s fake news, check out the data.

Trump went off on Iran. What could be behind President Rouhani’s provocations?

Michael Cohen stayed in the news again this week. He’s gonna get a TV series:

Tariffs are always a tax on consumers. Donny is here to collect:

Americans no longer have unlimited voting rights, or election security in the US. This is believable:

Establishment Democrats always react the same way:

Wrongo isn’t on board with the democratic socialism platform, but he believes that corporations should be subjected to tighter regulations. They should pay more in taxes. They should be forced to reimburse the people for the deleterious impacts of their activities, like cleaning up factory sites that have polluted the land.

And every American should have access to healthcare, childcare, and some form of employment. We could make the choice to provide a free education to every American if it were a higher priority than new bombers, or aircraft carriers. ICE should be reformed, not abolished.

Establishment Democrats are trying to scare voters away from candidates who support the democratic socialism agenda. They should relax, democratic socialism isn’t about taking everything what you have away, and making it government-owned.

When you consider the perils and benefits of democratic socialism, you should think about Europe. Five of the top 10 happiest nations in the world (according to the UN) are Scandinavian: Finland, Norway, Denmark, Iceland, and Sweden. And they are all democracies.

Ever since Alexandria Ocasio-Cortez upset the 4th ranking House Democrat by running on a democratic socialist platform, Dems worry that what worked in the Bronx won’t work in Kansas. They’re right, it won’t work in Kansas. That’s why candidates need to run on issues that are important to their districts. A voter in Kansas is probably more concerned over the price of wheat than he is about gay marriage.

But, running on the economy and jobs works everywhere.

Ocasio-Cortez campaigned with Bernie Sanders in Kansas. James Thompson, a centrist Democrat running for Congress in Kansas, said she might as well come out, because the local Republicans were going to call him a socialist anyway.

Democrats were called socialists in 1992 when Bill Clinton won. They shouldn’t panic – they should own the accusation.

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Monday Wake Up Call – July 9, 2018

The Daily Escape:

Turkeys on the Fields of Wrong – June 2018 photo by Wrongo

We wake up this Monday in an America that seems unlike what it should be, or what it was a few years ago. Two quick stories. First, this action by the Trumpistas encapsulates everything horrible about the Trump administration’s approach to the world: (emphasis by Wrongo)

A resolution to encourage breast-feeding was expected to be approved quickly and easily by the hundreds of government delegates who gathered this spring in Geneva for the United Nations-affiliated World Health Assembly…. Then the United States delegation, embracing the interests of infant formula manufacturers, upended the deliberations.

American officials sought to water down the resolution by removing language that called on governments to “protect, promote and support breast-feeding” and another passage that called on policymakers to restrict the promotion of food products that many experts say can have deleterious effects on young children.

More from the NYT:

When that failed, they turned to threats…Ecuador, which had planned to introduce the measure, was the first to find itself in the cross hairs.

The Americans were blunt: If Ecuador refused to drop the resolution, Washington would unleash punishing trade measures and withdraw crucial military aid. The Ecuadorean government quickly acquiesced.

They scrambled to find another sponsor for the resolution, but at least a dozen countries, most of them in Africa and Latin America, backed off, citing fears of retaliation.

The Russians ultimately introduced the measure — and, no surprise, the American delegation did not threaten them. From Booman:

The Trump administration demonstrated almost every flaw they have here. They put the interests of corporate lobbyists ahead of the health of babies. They showed a complete contempt for science and the consensus of the international community. They abused their power and threatened well-meaning and innocent nations simply because they could.

The message is clear: If a country needs to stand up to America, they should go running to the Godfather, Russia, who will do the right thing. And for America? Another horrible outcome brought to you by Donald Trump.

Second, Politico reported that Trump is obstructing the plan to build a new Gateway Tunnel between New York and New Jersey:

The obstacle is not the usual red tape that delays US infrastructure….the environmental review for the new Hudson tunnel was fast-tracked and forwarded to the Transportation Department for approval in an unusually speedy two years. The obstacle is the Trump administration, which vowed in its infrastructure plan to accelerate the permits process, but has been sitting on this one without explanation. “I wouldn’t say we’re slow-walking it,” one administration official told me, before laughing. “OK, maybe a little.”

Ha-ha. The truth is that Trump is trying to force Chuck Schumer to vote for Trump’s Wall in order to get money for the Tunnel. Here’s the NYT: (brackets and edits by Wrongo)

President Donald Trump was in an unusually bipartisan mood on September 7, when he convened a White House meeting about a massive project to build a rail tunnel under the Hudson River.

The politicians in attendance thought [they had a deal]…. “Ask anyone on either side of the aisle. It was very upbeat, total agreement this needs to get done,” Christie told me. King describes the meeting as a love-in: “Not a single negative word, great body language, everybody on the same page.”

After the meeting, though, Trump asked Schumer to stay behind. He bluntly offered another deal, an offer suggesting he had a rather different conception of Gateway’s larger importance: Schumer could have his tunnel if Trump got his border wall with Mexico.

Schumer said he couldn’t make that trade. And ever since, the Trump administration has been doing just about everything in its power to derail the Gateway project. In March, the president threatened to veto an entire $1.2 trillion government spending bill if it included anything at all for Gateway.

It always comes back to his F*king Wall. He’s promised something he can’t deliver, so the only thing he knows how to do is try to take hostages.

This will simply get worse if we fail to turn out in massive numbers in November, and try to re-take the Senate, and absolutely take back the House of Representatives. To help you wake up today, here is John Prine’s “Long Monday” from his 2005 “Fair and Square” album, which won the Grammy for best Contemporary Folk Album:

There are a host of great musicians on the album, including Jerry Douglas, Allison Krauss and Dan Tyminski. Mindy Smith sings harmony on Long Monday.

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

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Monday Wake Up Call – Cape Cod Edition

The Daily Escape:

Cape Cod morning – 1950 painting by Edward Hopper

(Today, Wrongo and Ms. Right are on our way to Cape Cod for a few days of bonfires, bicycling, surfcasting, and hanging with kids and grandkids. Blogging will be infrequent, but you can expect a Saturday Soother on, well, Saturday.)

This morning, Wrongo feels the need to bore you with a concept from historian Peter Turchin, taken from his book Ages of Discord, which provides some insight into where America is today. Turchin posits that historical eras are either integrative periods when people find reasons to cooperate, and join forces, or disintegrative periods, when reasons to split apart become dominant.

Turchin identifies three key factors that can create the disintegrative periods:

  • Competition and conflict among an expanding population of elites
  • Declining real wage for an expanding population of workers
  • State financial collapse (unpayable debt)

Does any of that sound familiar? Turchin’s theory is that history experiences cycles which, in non-industrialized economies, tend to last between 200-300 years. In America, the cycles from start to finish are much shorter, about 150 years, due to a faster pace of change.

His demonstrates his theory about a positive phase (the integrative phase) and a negative phase (the disintegrative phase) in the first of two American cycles, from 1780 to 1920. The positive phase lasted from about 1780 to about 1840, while the negative phase lasted from about 1840 to about 1920. Turchin contends that the second American cycle began in 1920, and is not yet complete. The positive phase lasted from 1920 to around 1970, and the negative stage has lasted from 1970 to the present.

He contends that the best parts of positive eras typically last only a generation or two, such as 1810 – 1840, and 1940 – 1970 in the US, before elite individuals and groups abandon consensus politics to pursue ever harsher exploitation and competition to enrich themselves.

A cycle begins with an undersupply of labor, such as happened after the American Revolution. This shortage of labor caused a rise in real wages and general economic progress. This positive phase peaked around 1820. It was a time that reflected a sense of national purpose and a desire for unity among Americans in the aftermath of the War of 1812.

But the division between the industrial North and the slaveholding, agrarian South continued, creating rivalry among the elites, along with political polarization, culminating in the Civil War. The negative phase of the cycle continued afterward, with massive strikes, many of them violent, in the late 19th Century. Meanwhile, income inequality peaked during the Gilded Age as elites profited from low worker’s wages and poor working conditions.

In modern America, we are largely governed by religious, geographic (local, state and federal), and economic institutions. And many compete with each other for resources, and the separation of powers among them is becoming hazy. Today, our “economic” government is the corporation.

If you think about it, our current political struggles are between geographic governments and both the religious and economic ones. Republicans, and many Democrats, support the efforts of both to increase their influence over the lives of the people, often through the geographic governments.

And this isn’t simply a minor change in who is doing the governing, they threaten our democracy.

We’re blowing up our institutions, but it’s not in reaction to any looming danger. It’s because we’ve been conned into thinking that September 11 was the same as Pearl Harbor. And the threat of immigrants today is the same as the threat of a Japanese invasion was in 1941. And that modern social policies threaten the religions of some people.

Time to wake up America! We cannot surrender to fear, to corporatism, or to forever war. We have entered a disintegrative phase, but there is time to pull out of it.

If you care.

To help you wake up, here is Pink Floyd with “Ordinary Men” from their classic album, “Dark Side of the Moon”:

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

 

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Monday Wake Up Call – June 4, 2018

The Daily Escape:

The Blue Grotto, Malta – photo by SingularET. Not to be confused with THE Blue Grotto on Capri, the hangout of the Roman emperor, Tiberius.

NewdealDemocrat over at Angry Bear raised a few excellent points about historically low unemployment and stagnant wage growth: (emphasis by Wrongo)

As I noted several weeks ago, even though we are at least closing in on full employment, the percentage of employers not raising wages at all has gone up in the last year:

(The blue line is the percentage of employers who have not increased wages. The grey shaded areas are recessions.)

There was more bad news from Axios , reporting on a meeting with the Dallas Federal Reserve about how big companies aren’t planning on raising wages at all:

The message is that Americans should stop waiting for across-the-board pay hikes coinciding with higher corporate profit; to cash in, workers will need to shift to higher-skilled jobs that command more income.

Troy Taylor, CEO of the Coke franchise for Florida, said he is currently adding employees with the idea of later reducing the staff over time “as we invest in automation.” Those being hired: technically-skilled people. “It’s highly technical just being a driver,” he said.

The moderator asked the panel whether there would be broad-based wage gains again. “It’s just not going to happen,” Taylor said. The gains would go mostly to technically-skilled employees, he said. As for a general raise? “Absolutely not in my business,” he said.

John Stephens, chief financial officer at AT&T, said 20% of the company’s employees are call-center workers. He said he doesn’t need that many. In addition, he added, “I don’t need that many guys to install coaxial cables.”

The Civilian Non-Institutional Population (those who the government tracks for jobs analysis), grew 21.3% between April 2000 and April 2018, yet, full-time jobs grew only 11.7%. This means that we can’t possibly be at full employment, despite the government’s headline unemployment rate of 3.8%, the lowest since 2000.

And if most employers are thinking like those at Coke and AT&T, wages won’t increase, despite the country’s nine-year economic recovery. If wages will not be increasing, where do employers think increased demand will come from? And, if companies are freezing wages during the supposed good times, what will happen when times turn bad?

Corporate policies are designed primarily to respond to the requirements of its management and its institutional shareholders, not employees. Employers’ profits have been increasing steadily, but the wealth keeps getting transferred upwards. And it’s the employers who are responsible for layoffs, and who use other methods to increase profits, such as automation, which leave the surviving workers in an increasingly poor negotiating position when it’s time for the annual raise discussion.

Do workers “deserve” an annual increase? By performing their jobs, workers produce value for the company. If a company is profitable, workers should get a cut, and if profits go up, so should their share.

If a particular individual isn’t performing well, then in an efficient/well-managed company, they’ll be replaced. If the job itself is not structured to produce effectively, in an efficient/well-managed company, the job will change. And if the company fails to do either, then in an efficient/well-managed company, the company will change, or it will fail.

It appears that with their paltry increases, workers are losing ground. Rents are rapidly rising in most cities. Wrongo saw a story about a New York City couple who moved from Brooklyn, NYC to Westport, CT for cheaper housing. It wasn’t many years ago that Westport was substantially more expensive than Brooklyn. In fact, it was once the home town of Paul Newman and Martha Stewart.

Many workers are fighting for a 2% raise. (Remember, 2.6% is the average, which means many workers are getting less than that). Factor in the rising rents, food costs, and health care insurance, and you can see that the average hourly worker has little chance of upward mobility.

Is this an inevitable outcome caused by Mr. Market? Not really. Our government has its thumb on the scale via tax benefits to corporations, combined with a Federal minimum wage that is impossibly low.

Time to wake up, America! We must stop letting corporations hoard the profits! Capitalism is institutionalized avarice. Its purpose is concentration of power. And one outcome is the spreading of economic misery.

To help you wake up, here is the Soup Nazi who, says, “No soup for you! Come back 1 year!” Just like many employers say when hourly employees ask for a raise.

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

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DeVos Trashes DOE Unit Investigating For-Profit Fraud

The Daily Escape:

Cherry Trees in spring, Japan

From the NYT: (emphasis by Wrongo)

Members of a special team at the Education Department that had been investigating widespread abuses by for-profit colleges have been marginalized, reassigned or instructed to focus on other matters, according to current and former employees.

The unwinding of the team has effectively killed investigations into possibly fraudulent activities at several large for-profit colleges where top hires of Betsy DeVos, the education secretary, had previously worked.

It is difficult to say which Cabinet Secretary is the worst member of the Trump administration. EPA head Scott Pruitt makes the list, judging by his personal proclivities, and that Interior Secretary Ryan Zinke’s destructive impact is far-reaching.

But Wrongo’s vote goes to Education Secretary Betsy DeVos for doing the most damage to America because of her undermining of America’s education system. And her relentless efforts continue the entrapment of millions of young people in the for-profit student loan system that has now reached $1.5 trillion. This will threaten America’s economy for decades.

More from the NYT: (emphasis by Wrongo)

During the final months of the Obama administration, the team had expanded to include a dozen or so lawyers and investigators who were looking into advertising, recruitment practices and job placement claims at several institutions, including DeVry Education Group. The investigation into DeVry ground to a halt early last year. Later, in the summer, Ms. DeVos named Julian Schmoke, a former dean at DeVry, as the team’s new supervisor.

With the reorganization, now just three employees still work on the team, their mission has been scaled back to focus on processing student loan forgiveness applications.

This is Trumplandia, where agencies are run based on the personal motivations of the head of the agency. DeVos has long had personal and financial interest in the for-profit segment of education. She has pursued funding of private charter schools and religious schools using public funds.

Corporations and moneyed interests now directly control several of our key agencies. Trump has opened the doors wide to industry lobbyists. Pruitt is running the EPA at the behest of industry, at the expense of the well-being of the American people. Zinke is out to shrink public lands to aid private interests.

People who want the best for the nation clearly are not welcome in the Trump administration.

This is another reason for people to go out and vote in huge numbers in November. It is the only way to change the dangerous course that Trump has placed us on.

And it’s not simply Trump. This is who and what the GOP is now.

Time to take the country back from those in Washington who see privatization as the holy grail of corporatism.

People are talking about impeachment if the Democrats take back the House in 2018. Rather than focusing on Trump, the idea should be to impeach DeVos. The Constitution provides for impeachment of cabinet secretaries.

But, it will be tough to choose between Pruitt and DeVos when it comes to high crimes and misdemeanors.

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