Vote Today, if Only for Yourself

Today is Election Day, and it seems even the Main Stream Media circus has limited interest.

photo(2) And if you look to the left, we finally have a proven case of voter fraud. Its certain that this little Havanese didn’t vote using its own ID.

Whatever the results, progressive ideas and politics will continue to decline because today’s Democrats have moved to the right from where they were 40 years ago.

 

Based on the content of the 2014 mid-terms, Democrats are seeking to “conserve” society as a 20th century education, an 18th century government, a neoliberal economic ideology, and contradictory policies in foreign affairs.

There is no energy in the mid-terms behind real reform, even well-protected Senators and Congresspersons are only willing to preserve watered-down versions of marriage rights for all, Social Security/Medicare, some semblance of a non-military expense category in the federal budget. And no one is for healthcare for all or addressing climate change. The Republicans mainly want to preserve wealth, protect large business and continue to go through the motions of appeasing their social conservative base and the gun lobby.

The tactics of both parties more or less “work”, if by that we mean to build long, lucrative political careers. There is no sense that any policy means much to America’s politicians who mostly speak in platitudes and rarely say what they mean.

They’ve fooled us for decades and “the people” seemingly never tire of the BS. The Republicans have a closing argument that the Rude Pundit paraphrases thusly:

The Republican National Committee is up with an ad that throws every scary thing in the world at you. “ISIS gaining ground. Terrorists committing mass murder. Ebola inside the US, Americans alarmed about national security,” says the ominous voice ominously. “What’s President Obama doing? Making plans to bring terrorists from Guantanamo to our country. Ignoring the Constitution, the Congress, and the American people. November 4th, Obama’s policies are on the ballot. Vote to keep terrorists off U.S. soil. Vote Republican.

The Democrats have no closing argument. The great tragedy of the Democrats is that they still believe politics is about competing sermons.

That is a nice fantasy, but that isn’t how politics works today. Any attempt by Democrats to engage in a policy struggle with Republicans that fails to understand how powerful people on the right use a multitude of sophisticated techniques that would make Machiavelli faint, is doomed to failure, and the proof of this is right in front of us today.

We live in the mess these people are making. We have to vote, organize, and persuade others to vote if we are to make safe, secure lives for ourselves and for our families.

Here is Tuesday linkage:

Election officials in 27 states have launched a program that threatens a huge purge of voters from the rolls. The Interstate Crosscheck program has generated a list of 7 million names that state officials say represent people who are not only registered, but have actually voted in two or more states in the same election. You be the judge.

On the campaign trail, an Ohio Republican Supreme Court Judge says: (emphasis by the Wrongologist)

Whatever the governor does, whatever your state representative, your state senator does, whatever they do, we are the ones that will decide whether it is constitutional; we decide whether it’s lawful. We decide what it means, and we decide how to implement it in a given case. So, forget all those other votes if you don’t keep the Ohio Supreme Court conservative.

The Small Business Majority, an organization of 30,000 small business owners, released the results of a September 2014 Internet survey of 900 small business owners that showed that 78% of their group believe we should change our current election system to one that allows for multiparty representation, a system that could lead to election of parties other than the Republicans and Democrats.

More lucky duckies living with their moms for free: A Pew Research analysis shows that the number of Americans living in multi-generational households has doubled since 1980. The figure spiked during the 2007-2009 recession and has moved even higher since then.

Signs of the times department: Washington’s Hirshhorn Museum has disbanded its docent program and replaced the largely retired staff with interns.

A follow-up to last week’s link about F-35, is this disturbing article that says the F-35 is a second-rate warplane. Consider the source, but the article quotes some recognized warplane experts.

Inequality Watch: Oxfam reports that the number of billionaires has doubled since the financial crisis. In fact, they say that the top 85 most wealthy saw their collective wealth increase by $668 million every day last year. That’s almost half a million dollars every minute.

Bradblog reports that the problems with Diebold voting machines have not gone away, at least not in Maryland, Texas, Illinois, and Tennessee.

The WaPo reports that US-backed Syria rebels have been routed by fighters linked to al-Qaeda. Half measures don’t work. Either we decide to go all-in with Assad, or let’s go home. His is the only force in the area capable of crushing ISIS. At the same time, we should remove the PKK and any other Kurdish forces from the terror list and supply them with the best weaponry. That is, if we really want to win.

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October 30, 2014

What’s Wrong Today:

This year, Republicans did not put up a challenger in 37 House races, while Democrats did not field candidates in 32 districts, according to the Cook Political Report. Another 8 House districts will see no contest between the main parties, because of the “top two” primary system used in California and Washington state. These 77 single-party House races are a high number by recent standards. In 2012, there were 45 of them.

In today’s Democratic Party, challengers seldom see a primary attack from their left, while Republican incumbents often fear attacks from the right. The Economist quotes Rep. Mike Capuano (D-MA) who is running unopposed: (brackets by the Wrongologist)

In politics, Republicans are like dogs, working as a pack [while] Democrats are the cats.

Few races for the House are closely fought. Roughly 80% of the 435 members have little or fear on election day. Given the very high costs of getting elected, there are fewer opposition candidates in historically safe House districts.

Turning to the Senate, in July 2014, 42 Senators (41 GOP and 1 Dem) succeeded in killing Bill S2569, which would have repealed the corporate tax break for shipping American jobs overseas (you need 60 votes to overturn a Filibuster). And on Nov 4th, Kentucky Sen. Mitch McConnell (R) and all the other Senators (running in this cycle) who voted against the Bill will be re-elected.

DC insiders think that this is a feature, not a bug. Would voters tolerate a Congress with hundreds of uncontested seats?

Thursday linkage:

If they show you a chart, apparently, you will believe whatever they are saying.

Independents favor Republicans by 20 points: Republicans have discovered that a sufficiently united party can obstruct everything and anything, but largely escape blame for the resulting gridlock.

The most politically engaged states: This study shows the most engaged states had a more highly educated population, higher per capita economic output and fairer tax systems. Massachusetts and Colorado were #1 & #2. West Virginia was #50.

The US is developing better relations with Iran: If permanent, the shift could drastically alter the balance of power in the region. If the nuclear issue is resolved, this could be Obama’s greatest legacy. But, it risks alienating key US allies, like Israel, Saudi Arabia and United Arab Emirates.

Dubai police to use Google Glass with facial recognition to ID bad guys: Well, last year Dubai announced it would supply its police with $400,000 Lamborghini’s for use at major tourist sites. Cool cars and stupid glasses.

Some of Bach’s masterpieces were composed by his wife: A documentary film, “Written by Mrs. Bach” makes a case that Anna Magdalena Bach actually composed some of works attributed to her husband, Johann Sebastian Bach. And she had to cook and clean.

Home ownership rate in the US fell to the lowest rate in more than 19 years: Entry-level buyers have been held back by stringent mortgage standards and slow wage growth. The share of first-time buyers was 29% in September for the third straight month, compared with about 40% historically.

Who is watching the World Series? Apparently, fewer of us than ever: The last time the World Series averaged more than 20 million viewers was in 2004 when the Boston Red Sox defeated the St. Louis Cardinals to take their first title since 1918.

Your Thursday Music Break:

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Retail Store Closings Reflect Middle Class Income

Today, we take a business trip!

The retail sector of the US economy is not doing so well. The Census Bureau tracks retail sales in the US, and sales decreased 0.30% in September, compared to the previous month. Retail Sales month over month in the US gained an average of 0.37% from 1992 until 2014, reaching an all-time high of 6.71% in October of 2001.

This week, NCR, the maker of point-of-sale devices for the retail industry who call themselves “the global leader in consumer transaction technologies”, announced disappointing third quarter results. NCR blamed particularly the “challenging retail market” for its debacle. CEO Bill Nuti explained it this way:

Market conditions within the retail industry worsened in the third quarter, as evidenced by weak same store sales comparisons and financial results. This resulted in our retail customers spending more cautiously than anticipated and further delaying solution roll-outs…Additionally, ongoing retail consolidation continues to be a factor impacting our performance.

NCR has noticed that brick-and-mortar retailers are cutting back. “Ongoing retail consolidation,” Nuti called it. And some, like Radio Shack, are likely to use bankruptcy courts to do it. The structural problems in the brick-and-mortar retail industry include Sears, which is closing 300 Sears stores and 80 Kmart stores.

Some of us wonder why anyone still buys there. Retail chains, large and small, have announced an epidemic of store closings in 2014. Here are the “Top 20? announcements of store closings. For these 20 chains, the total number of stores to be closed exceeds 4,200. The number of closed stores is the first column:

US-announced-retail-store-closings-2014Store closings add up: Jobs are lost, consumer spending weakens, and fewer tax revenues are paid to states and the federal government. This process has been going on for years. As a side note: when all this washes out, who is going to fill the vacant retail space in our malls? That’s one of the many secondary effects of the troubles in the American retail industry.

Hopefully, you haven’t invested in those Shopping Center Trusts.

 

Source: Wolf Richter

Yet, some box store retail continues to grow. Starbucks is opening another 1400 stores in the US by 2017, a 13% growth rate. They prove there is a market for things that can’t be ordered and delivered hot over the Internet. But, the openings of new retail locations for 2014 will not offset the closures. Much of domestic retail expansion in 2014 is about discount stores. Between Dollar General, Family Dollar and Dollar Tree, more than 1400 new discount stores will be opening, using the original Walmart expansion strategy. At the same time, Walmart is abandoning its own strategy. The New York Times reports that: (brackets by the Wrongologist)

Walmart’s woes [are causing] a change in corporate strategy. Walmart will slow store openings in the United States next year, opening 60 to 70 supercenters, compared with 120 this year…The Company is shifting its focus toward smaller Neighborhood Market grocery stores, and it said it would open 180 to 200 of them next year. It is also accelerating its online offerings…

Auto sales (mostly at retail box stores) have been booming, Reuters reports that: (brackets by the Wrongologist)

The annualized sales rate slowed to 16.4 million [units]…above last year’s 15.4 million, but well below the 17.5 million [annualized] pace in August.

This performance was partly due to cheap money, long financing terms, and a focus on subprime customers. Jim Lentz, US chief executive at Toyota Motor Corp:

We are seeing more ‘subprime,’ which is good.

In one report, a 71 year old Queens NY woman on food stamps got a $16,000 loan on a used car:

After two test drives and about two hours, the dealership found her a loan: $16,000 financing for a used 2014 Ford Fiesta. There would be a bank fee of about $4,000, and she would have an interest rate of 20.23%

Subprime, indeed. As for the role of consumer spending in our economy, American consumers are stressed. Many have had to curtail their spending, or make up the difference with borrowed money. Closing retail stores may be the canary in a coal mine for our consumer economy. For some business owners, considering some retail store analytics might provide insight into how to keep their stores open.

The best measure of economic security is ownership of wealth. Yet, using Median Wealth as a yardstick, the middle class in the US ranks only 27th in the world. Here is how we rank against two of our allies:

#27 USA: $44,911 ? hardly enough to pay for an operation in a US hospital
#1 Australia: $219205
#6 United Kingdom: $111,524

Global wealth has reached a new all-time high of $241 trillion, up 4.9% since last year and 68% since 2003, with the USA accounting for 72% of the latest increase.

Perhaps the solution in the US is to not to tax based only on income, but to tax based on income and assets. If you own or control 80 to 90% of the assets of this country, and the country’s resources are securing, maintaining, and protecting your assets, it stands to reason that you should also be bearing the majority of the tax burden of the country.

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