Showing posts with label wealth disparity. Show all posts
Showing posts with label wealth disparity. Show all posts

Thursday, May 25, 2017

On Voter Fraud, Immigration, and Economic Disparity

== The New “Voter Fraud” Commission ==

As usual, Democrats are right to complain… and they are doing it all wrong.

President Trump declared a commission aimed at justifying his unfounded voter fraud claims.  (“Millions cast illegal ballots, giving Hillary Clinton her huge popular vote margin.”) But instead of appointing a blue-ribbon, bipartisan committee of nationally respected sages, the commission will be spearheaded by Vice President Mike Pence and Kansas Secretary of State Kris Kobach, often tied to white nationalists.

Riiight.  Go to Kansas - by far the worst governed state in the Union - for wisdom. I'll get back to that, later.

To be clear, I have never objected to gradually ramping up requirements that voters show ID. (See my earlier,more extensive postings on this.) But we need to bear in mind:

(1) There is no factual evidence that this is a major problem requiring urgent-rapid action. Voter fraud has repeatedly been shown to be almost nonexistent.

(2) Other forms of cheating are either blatant -- gerrymandering -- or seem extremely likely - e.g. many red states use voting machines that cannot be audited and are made by known-rabid rightwing partisans.

(3) There is a simple test as to whether red state GOP legislators pushing voter ID laws are sincere, or attempting bald-faced suppression of US citizens exercising their rights.  What is that simple test? When red states pass these restrictions, do they also allocate money for compliance assistance

Whenever the federal government – or most states – apply new regs upon business, there is almost always some provision offering those businesses help in complying with the new regs. Sometimes the help is modest, often it is substantial. But the principle is well-established. Moreover, if a new regulation’s impact hits small fry hard – like mom and pop establishments – then the calls for compliance assistance are compelling!

So, here’s the simple test. Have any of the GOP-led state legislatures who passed stiff voter ID laws also alloted funds to help poor citizens to get the IDs they need? It's a win-win, since getting clear ID will also help poor folks to do banking, establish businesses and lift themselves out of poverty. A concerted effort to help a state’s citizens get ID would be both beneficial and prove that those legislatures were sincere. It would refute the accusation that these laws have one sole purpose – cheating.

Okay, here’s the crux. The on-off switch. The total fact that proves criminality and treason. Not one of these red states have passed even a single penny of compliance assistance, to accompany a stiff, new regulatory burden they slapped on their poorest and most vulnerable citizens.  In fact, many of these red – no, they must be called gray – states went on a binge of closing DMV offices “to save money,” mostly in poor or democratic-leaning counties. They made compliance with their own law harder. Deliberately much harder.

Hence the indictment is proved. As it is with the utterly laughable-hypocritical “commission” that Donald Trump just appointed.  They are exposed as liars. Cheaters. Betrayers. Hypocrites and traitors. Confederates.

== Disparities in wealth.. and lifespan ==

Want the wealth disparity problem brought starkly home? Look at this chart. Then ponder what one worried analyst wrote, in late April:

"What is interesting is that whereas Mr. Trump was elected (partly) because he promised to improve the condition of the American worker, since his election, the 0.1% have gained the most as the stock market capitalization has increased by over $2 trillion. Therefore, by now the wealth of the top 0.1% should exceed the wealth of the bottom 90% for the first time since 1941. Remarkably, the recent pronouncements by Trump and coterie suggest that they equate the stock market strength with a strong economy as well…."

Notice how the blue line started surging upward, in tandem with the red line's fall, with the arrival of Ronald Reagan's tax cuts on passive capital gains. 

Tell me. Do you actually think the crushed middle class will continue to drink the plantation lords' koolaid -- the soothing rhetoric that the beneficiaries of this trend aren't the ones to blame for it?

 Lifespan disparities among the races have been narrowing (in the U.S.). Good news... though that may change. Meanwhile, lifespan disparities have been increasing geographically. Look at the map. Now squint and correlate it with our red-blue divide. Several observations:  (1) Appalachia and the Olde South got huge help from FDR, then Kennedy and Johnson, and these disparities declined. (2) They started climbing again directly after the arrival of Nixon-Reagan and the installation of GOP governments in those states.

Indeed, look at the fiscal condition of states like booming, creative and budget-balanced California vs disasters like Kansas, Oklahoma, Mississippi and...

There is something called Outcomes Correlation. When outcomes so clearly correlate with policies, that doesn't prove the policies were responsible for the outcomes. But it does create that presumption. It shifts the burden of proof onto those who hold otherwise. In this case, the correlation suggests that citizens of these states should recall why their parents adored FDR and Kennedy and Johnson.

It suggests that they have been very badly governed by their GOP state leaders, whose confederate policies (favoring rich plantation lords) might be discredited compared to policies that show blue states doing ever-better.  Outcomes appraisal should "trump" left-right dogmas or identity-populism. Outcomes appraisal is a sign that you are sapient, capable of examining what's in your self- interest.

What's in your outcomes-correlated self-interest? To never trust a Republican Politician with a burnt match, ever, ever again.

See outcomes appraised in some detail, if you dare: Do outcomes matter more than rhetoric?

== Kansas, Kansas, doodle doo ==

Oh, I promised a further thought about Dorothy's home state.

Almost hidden in the announcement of a $110 billion arms sale to Saudi Arabia -- in which Trump treasonously swore to help the sheiks and princes 'get a great deal' from U.S. companies -- is a small matter of industrial shift.  Using Saudi money as a cudgel, Trump coerced agreement from Boeing, Lockheed etc to move production from blue states to red ones, at least partially, with Kansas the biggest beneficiary.

Sure, this is partly just more mean-minded politics.  While Democrats in power sent heaps of blue state generated money (and NASA centers) into Appalachia and the South as part of anti poverty programs, Republicans push cash flows in the same direction as a matter of pure spite and vengeance, with California and New York special targets.

 But there's a particular reason to single out Kansas for this latest huge largesse. You see, under Sam Brownback, the GOP-led state government there doubled down on "Supply Side (voodoo) Economics," slashing taxes on the rich while chopping services for the middle class and poor. The theory posits that giving gushers of gifts to the aristocracy will stimulate economic activity so much that it will erase deficits. In fact, SSVE has never worked. Once. Ever. At all. Anywhere or at any time.

Sure enough, Kansas is now drowning in debt, bankruptcies, ruined schools and collapsing infrastructure. KS voters punished the GOP in the last election, but nowhere near as much as seems likely, next time. Worse yet for the plantation lords, the Kansas economic collapse is so stark that maybe, at long last, a large majority of Americans will get riled up and thoroughly smash the trickle-down insanity.

The lords' hope - underlying the Saudi Arms Deal - is that transferring production from Washington State and California to Kansas will federally prop up the latter state's disaster enough to keep the delusion going for just a while longer. 

And now you understand the insidious sub-text, beneath the news.

== Points of disagreement ==

I’ll happily offer up moments when I don’t disagree with President Trump. (In part because it maintains my credibility to oppose his many deficiencies.) Two of these are found in his admiration for some Canadian policies.  For example, he recently spoke positively of Canada’s single-payer healthcare system. Which we are are now more likely to get, since the recently passed GOP “Obamacare replacement” will explode in short order.

Another is in the under-discussed matter of LEGAL immigration, which has far greater effects than the infamously transfixing topic of undocumented incomers.

“In the U.S., about two-thirds of permanent residents are admitted to reunite with family members,” writes Paul May. “Less than 20 percent are admitted because of their professional skills. In Canada, by contrast, it’s almost the opposite: more than 60 percent of permanent residents are admitted via the economy class, and only a quarter are admitted because of family reunification.” 

The family reunification system, set up by the democrats, is horrible.  Oh sure, it sounds nicely moral and goody-goody and I support reuniting parents and children and young siblings.  But beyond that, it is actually deeply immoral, giving advantage to people in the “home country” who are already way luckier than their neighbors, by having American cousins who send money and advantages. This luck advantage is wretchedly indefensible and has no justification at all.  

Why not let in folks who can adapt to US society swiftly and productively, giving us a win-win? Can you think of any better way to keep us rich and diverse and vibrant -- and rich -- enough to keep being generous in the world and letting in more?

== Miscellany ==

* People are prank calling President Trump's new office to report illegal "criminal aliens" — just not the type of "aliens" President Trump had in mind when he created the office.

* An elder thought: I do wonder if I am the only person on the planet who remembers how, in the 60s and early 70s, there were economists hand wringing a worry that seems utterly weird, today.  At then-present rates, if all the pension plans were fully vested, then by 2010 the workers would - through those pension plans - "own the means of production."  They would own the factories and have the largest share of stock equity.  Then came wave after wave of refusal to vest the pension funds... and the 'problem' is now entirely forgotten!

I can't even get economists my age, like John Mauldin, to remember this.  They get uncomfortable and change the subject. Do any of you remember it, at all? With citations?

* When was America great? I have eviscerated the confeds’ first, reflex answer — the 1950s of “Happy Days” — is easy to refute. But then, romantic nostalgists are adaptable. As they keep moving the goal posts on climate change, they will shift when they say American greatness peaked. Though this article shows how even the first billionaire, in 1916, lived in many ways worse than most middle class Americans of 2017.

Romantic nostalgia is an ancient poison, as described in this interesting piece. “How Nostalgia Made America Great Again.”  See my takedown of 1950s nostalgia here. The Greatest Generation - of that era - wanted desperately to make a better world... and they succeeded.

Anybody who wants to go back to the 1950s insults the great men and women who lived and strived and worked then!

 * A meme warfare unit? A hilarious spoof that ought to be true!


Sunday, September 15, 2013

Bringing back feudalism -- is libertarianism an unwitting tool?

== Those helping feudalism return - unwittingly ==

ElevenQuestionR.J. Eskow - on Salon - offers "11 Questions to see if Libertarians are Hypocrites."  And yes, most of Eskow's posers certainly do set up some stark and thought-provoking contradictions - even hypocrisies - in the oft-touted positions held by many who today use the "L-word" to describe themselves. The article is well-worth reading and it does skewer especially those who bow in obeisance to Ayn Rand, the patron saint of resentful ingrates who want desperately to blame society for being  under-achievers. And yet…

…and yet Eskow wound up inciting the contrarian in me, with his blatant straw-manning -- setting up the reader to assume that all "libertarians" are lapel-grabbing, solipsistic randians.  Moreover, indeed, he tells flagrant untruths even about randians. Elsewhere I have dissected the Cult of Ayn far more carefully, actually looking carefully at her messages on many levels. Eskow wants only a caricature and a punching bag.

He ignores, for example the randians' admission that government should retain a monopoly on force and should be involved also in the enforcement of all contracts, not just copyright. Not entire-anarchism, indeed, it retains what's necessary for the ultimate randian outcome -- a return to feudalism -- to have real teeth. Eskow should know his enemy better.

(Note that I use Eskow's method of asking questions in what I hope is a much more neutral and thorough way, in my Questionnaire on Ideology, that encourages folks to re-examine many of their own underlying assumptions; take it if you dare!")

In fact, Eskow ignores other strands to libertarianism that include the erudite versions of William F. Buckley and Friedrich Hayek, who denounced the randian obsession with demigods as a guaranteed route to feudalism.  Hayek, in particular, extolled a level playing field that maximizes the number of competitors and avoids a narrow ruling-owner caste. Indeed, there are some versions of libertarianism that I consider to be entirely justified  -- the moderate versions offered to us by authors who range from Kurt Vonnegut to Adam Smith, from Robert Heinlein to Ray Bradbury...

...a version under which one is willing to negotiate and see a successful State that does good and useful things by general consensus and assent, but always with an emphasis on doing useful things that wind up empowering the individual to go his or her own, creative way. In other words, judging state actions (even skeptically) by a standard that is high, but allows us to work together on some valuable things that help us to then grow as we choose.

I could go on and on about that aspect of things; but instead I will simply offer a link to a far more cogent appraisal of this important thread of human political discourse, one that - alas - has been hijacked by oversimplifying fools who wind up parroting fox-fed nostrums and serve as tools for the very oligarchy that aims to tear down every remnant of freedom. (See: Maps, Models and Visions of Tomorrow.)

DefendingFreeEnterpriseIndeed, the name you'll never hear randians mention… and alas the same holds true of the oversimplifying straw-manner Eskow… is Adam Smith, whose version of libertarianism adults still look to, from time to time.  A version that admires and promotes individualism and the stunning power of human competition, but also recognizes that competitive-creative markets and democracy and science only achieve their wondrous positive sum games when carefully regulated… the way soccer or football must be, lest the strongest just form one team and stomp every potential rival flat and then gouge out their eyes… which is exactly what winner-owner-oligarch-lords did in every human culture for 6000 years.  Till Adam Smith came along and described how to get the good outcomes without the bad.

The stealing of Adam Smith's movement by fanatics and cynically manipulative oligarchs is not just a tragedy for the right, and for market capitalism.  It is tragic for civilization.

==  Those seeking feudalism KNOWINGLY ==

Here is the fundamental political fact of our times, amid phase three of the American Civil War.  The gulf between the richest 1% of the USA and the rest of the country got to its widest level in history last year.

The top 1% of earners in the U.S. pulled in 19.3% of total household income in 2012, which is their biggest slice of total income in more than 100 years, according to a an analysis by economists at the University of California.

Also, the top 1% of earnings posted 86% real income growth between 1993 and 2000. Meanwhile, the real income growth of the bottom 99% of earnings rose 6.6%.

One-Percent-WealthThe richest Americans haven't claimed this large of a slice of total wealth since 1927, when the group claimed 18.7%. Just before the Great Crash and Great Depression... so much for the notion that Oligarchy assures prosperity and good management.  In contrast, the flattest American society -- just after FDR -- featured the longest boom, the most vigorous startup entrepreneurship, the fastest-rising middle class... and all of it with labor unions and high marginal tax rates.

The penultimate irony?  That the ones complaining about this are called "anti-capitalists" when the fair and productive-creative, entrepreneurial capitalism prescribed by Adam Smith is the top VICTIM of wealth and income inequality. Across 6000 years of human history, the enemy of open markets and freedom was always owner-oligarchy. The blame for this can be spread widely! Those liberals who ignore the "first liberal" Adam Smith are almost as foolish as the dullard right wingers who are helping to restore feudalism.

Book-Review-The-Greatest-Generation-by-Tom-BrokawThe greatest irony?  The people who are bringing all of this about claim to adore the "Greatest Generation" - our parents and grandparents who overcame the Depression and crushed Hitler and contained communism and started a hugely successful worldwide boom under protection of the American Pax... and got us to the moon and invented so many cool things that we got rich enough to go on a buying spree that made every export driven nation prosperous.

Funny thing.  That Greatest Generation adored Franklin Delano Roosevelt and the flat-but-dynamically entrepreneurial society that he and they built together.  Oh, but they were the fools and Rupert Murdoch knows so... so much better.

== So what is to be done? ==

Left-wingers who blame "capitalism" for our recent messes should replace the word with "cheaters."  At risk of belaboring a point that must be reiterated because people keep blinking past it: I consider healthy "Smithian" capitalism to be one of the top five VICTIMS of the malignantly incompetent rule of the recent US GOP.  There are no outcome metrics of national health under which the Republican Party's tenure in command did not wreak harm on the people of the United States, especially upon the middle class, upon human civilization and upon healthy capitalism… and the spinning ghosts of Barry Goldwater and William F. Buckley.

So let's try some simple reforms.  Fierce measures to stop interlocking directorships and the circle-jerk of 5000 golf buddies appointing each other onto each others' boards, then voting each other staggering "wages" -  it is a criminal conspiracy that not only has stolen billions but runs diametrically opposite to the entire notion of competitive enterprise.

Contradiction-Capital-Markets1- If capitalism works, then these high CEO wages should be attracting brilliant talent from elsewhere, till demand meets supply and the wages fall. They are in effect calling themselves irreplaceable "mutant geniuses" like NBA basketball players... only with this blatant rub. The top NBA players are fiercely measured by statistics!  The mutant-good CEOs are only "good" by the flimsiest of arm-waving by… their pals.

2- Critics of socialism cite Hayek and proclaim that, no matter how smart a set of top-down allocators are, they will be foolish simply because their numbers are few.  Now it happens that I agree! History does show that narrow castes of "allocators" do inevitably perform poorly. (The Chinese have done well... so far... but at spectacular environmental cost and corruption. And we know the inevitable end-game.)

So, how are 5,000 conniving, back-room-dealing, circle-jerking, self-interested golf buddies intrinsically better allocators than say 500,000 skilled, educated, closely-watched and reciprocally competitive civil servants?  Both groups suffer from delusional in-group-think.  But the smaller clade - more secretive, self-serving, inward-looking and uncriticized - is inherently more likely to fail.  Claiming that they are better allocators because they are "private" and secretively collusive is just religious litany, refuted by 6000 years of horrific oligarchic rule.

Return-To-CapitalismWe deserve and should demand a return to a capitalism that is more about creative-new goods and services than manipulation of imaginary financial "assets." Colluding cartels, like the caste of 5,000 CEO-director golf buddies must be broken up.  If you are a senior officer of a company, you should be disallowed to sit on any boards, anywhere, for anything. And anti-trust laws that served our parents well should resume being enforced.

The same goes double for an even worse cartel of cheaters... the casrtel of "seated members" of stock and commodities and equities exchanges like the NYSE and NASDAQ.  These blatant conspiratorial clubs violate every conceivable standard of fairness and competition, charging commissions to you and me while freely engaging in hundreds of billions of Hight Frequency Trading actions themselves, at zero friction or cost. In this electronic era there is no reason any of us should have to use such intermediaries to sell shares to others. The scam is a lamprey-vampire drain on the economy that should be reformed or eliminated. (And mind you, HFT is an existential threat to civilization, in its own right.)

LawrenceLessigTEDThere are dozens of other possible reforms, especially Lawrence Lessig's proposals to get the tsunamis of money out of politics and my own judo approaches to getting around gerrymandering.  

But above all we need to minister to our libertarian cousins, calmly drawing them away from Mad Murray and Alienation Ayn, getting them to realise that capitalism is not being helped by the rising oligarchs. It is being killed by them. Libertarians should re-enlist in the League of Adam Smith, and help restore the system to health, lest socialism rise again.  As it surely will, if this goes on. 

Follow-up: The economy, Past, Present and Future 
                    Politics for the Twenty-first Century

== The central battleground - the War on Science ==

In The New York Times, Adam Frank, a professor of physics and astronomy at the University of Rochester, offers a moving missive, Welcome to the Age of Denial, about  how his long career never prepared him for a 21st Century in which so many of his fellow citizens are actively hostile to science.  He winds up agreeing with my own conclusion, that his is not normal give and take, but something akin to civil war, and that pro-science part of our civilization must take on the responsibility of militancy against waves of roomy-cynical nostalgia… and not all of it from the mad right.

And... because this is the central battle field of culture war...

== Blues and Greens - waking up and getting active ==

Next Step in Climate Change Activism, a Cross Country March! Six months from now, 1,000 people will set out from Los Angeles to walk 2,980 miles across America to Washington, DC, on the Great March for Climate Action.  The march will inspire and motivate average people to pressure political and business leaders to act now to address the climate crisis. The GMCA will be the largest coast-to-coast march in U.S. history.

As we celebrate the 50th Anniversary of the March on Washington for Jobs and Freedom we are reminded that all movements must reach a moment of critical mass, when the call for change becomes powerful enough to shift public policy. We believe the size and scope of the Great March for Climate Action will be a vital next step. The March will start in Los Angeles on March 1, 2014, reach Phoenix in early April, Denver in early June, Omaha in late July, Chicago in early September, Pittsburgh in October and Washington DC on November 1. Marchers will walk 14-15 miles per day and camp in a mobile green village which will demonstrate sustainable technologies to feed and provide support services for the marchers.

Hey, we can only accomplish so much bywrangling at sites like this one, at the extreme intellectual end of things. There comes a point (as the French aristocrats learned after their dismal greed and obstinacy) when this goes down to the countryside.  To the streets.

-- David Brin: Website: http://www.davidbrin.com
                        Twitter: https://twitter.com/DavidBrin

Monday, April 29, 2013

Sensible Tax Reform, Wealth disparities.. and Gun Control

I haven't opined on politics for a while, but recent events compel me to go back to that blather-well.  Some time soon I expect to comment on the Boston Bombing and the myriad implications for our looming transparent society.  But for now…

1) Sensible Tax Reform?

It appears that Republicans in the U.S. Congress are veering away from the (politically) dangerous ground of entitlement reform, even though President Obama has put on the table an offer to let them have something they long demanded -- a reduction in the inflation adjustment for Social Security and Medicare, plus possible even the Bowles-Simpson age-adjustments.  It seems that (as happened with Obama Care) the GOP finds nothing more loathsome than when the opposition says, "Okay, we'll do it your way. So let's make a deal."

Instead, reports suggest that the GOP leadership in the House is leaning toward attempting Tax Reform, with the aim of eliminating almost all deductions, in exchange for a dramatic lowering of tax rates.  Read up on this, because it will raise a firestorm!  And the attempt will run into the same forces that stymied tax simplification for 60 years… a coalition of powerful interests who -- though hating each other -- will join forces to protect their sacred cows.

NoLosersTAxAs it turns out, I have long suggested an extremely simple approach that would avoid this pitfall, by simplifying first and then  dealing with political matters second.  It sounds impossible, but it is actually rather straightforward, if only we tried the method called "No Losers Simplification."

Easy, logical and blatantly sensible… and do-able because it has a trick to keep everyone calm from the git-go. So, what d'you think are the chances?

Oh, a final note on U.S. taxes. How the Maker of TurboTax Fought Free, Simple Tax Filing. Intuit has spent millions lobbying to keep tax season miserable.


2) Are things getting better?

Optimism is so out of fashion these days, on both the left and the right, that  - ironically -  a guarded optimism has become the natural state for any genuine contrarian. I could try to ignore that reflex and stay true to my natural dour cynicism.  But facts are lining up with those who see light at the end of the tunnel. For example, I often cite Professor Steven Pinker's proof (The Better Angels of our Nature: Why Violence has Declined) that on average, per capita levels of violence have declined steeply (if unevenly) around the world every decade since 1945.

Now Oxford University has released  a study that breaks down human well-being into a ten-factor "Multidimensional Poverty Index" that encompasses nutrition, school attendance, access to clean water and electricity and so on. While there are many laggard zones of misery (e.g. Ethiopia and Malawi), there are also zones where recent good news has been  very strong. For example, if the study’s 'star' countries, Nepal, Rwanda, and Bangladesh, continue to reduce poverty at the current rate, they will halve MPI in less than 10 years and eradicate it in 20. These leaders are followed by Ghana, Tanzania, Cambodia and Bolivia.

In truth, I have my doubts in some ways.  There is a certain level of "take-off" development that is fairly easy to get rolling when dynamic people are allowed to strive effectively for their families under honest government that  blends top-down investment, infrastructure and care with a looseness that encourages enterprise, under predictable and reliable law. Hernando de Soto's reforms in Peru showed that a mix of liberal and libertarian measures can have stunning positive effects that neither could achieve alone.  (Defying simplistic fools who demand we choose only one wing of the lobotomizing "left-right axis.")

Still, there are many pitfalls, like endemic corruption, plus the fact that every phase presents new problems, as China is finding out. As we found out.

hopeBut that's just me, trying hard to remain cynical... and yet forced -- as I was while writing Existence -- to conclude that we are a bright species.  And our natural condition is a brilliant insanity called hope.

3) The New Great Divide

Oh, but then I turn and see trends that threaten to wreck it all!  Like the ongoing train-wreck demolition of the egalitarian "American Dream."

Wealth disparity in the US hit its lowest levels during the generation after Franklin Roosevelt, with the booming of a healthy middle class and the flattest society ever seen (when it came to matters like social class)… all of it during the healthiest market entrepreneurial economy in history, amid unmatched economic growth that lifted nearly all boats and enabled us to finance bold new projects like space, science and civil rights.

Alas, since 1980 we have seen a trend back toward the steeply pyramidal social structure that dominated in 99% of societies that had agriculture and metals. Now the trend is accelerating. It took off since 2001 and continued in the first two years of recovery.


SDT-2013-04-wealth-recovery-0-1"From 2009 to 2011, the mean wealth of the 8 million households in the more affluent group rose to an estimated $3,173,895 from an estimated $2,476,244, while the mean wealth of the 111 million households in the less affluent group fell to an estimated $133,817 from an estimated $139,896.

"The upper 7% of households saw their aggregate share of the nation’s overall household wealth pie rise to 63% in 2011, up from 56% in 2009. On an individual household basis, the mean wealth of households in this more affluent group was almost 24 times that of those in the less affluent group in 2011. At the start of the recovery in 2009, that ratio had been less than 18-to-1."

Which raises a pertinent question to ask our conservative friends. Is there ANY wealth disparity that would cause some of you to admit that "Class Warfare" has historically been waged top-down, and that pattern always tries to return? Our parents' generation knew the answer. President Obama spoke of his love for his Kansas grandparents who both served in World War II and who pretty much raised him.  The "Greatest Generation" that defeated Hitler and overcame the Great Depression -- they adored FDR and re-elected him by huge margins. Not in order to destroy capitalism, but to save it. From the enemy that always, reliably ruined free and fair competitive enterprise -- and freedom -- in 99% of all human societies.

Those who today have one supreme goal... to portray FDR as satan ... they stand with the oldest and most pervasive enemy of freedom and yes, the foe of market capitalism that Adam Smith denounced and against whom the American Founders rebelled.  Is there some point when you would recognize that old foe?

Hint: it is not a dogma or doctrine, or any particular group of people.  It is a drive that fizzes out of most of us, when we find ourselves atop a pyramid. A drive to thereupon grab the power to stay up there. By cheating.

WhoControlsBut it gets worse when 40% of the world's wealth is controlled by less than 150 people. How does competition happen when our lords own a higher percentage of the wealth than the French aristocracy did, in 1789?

4) Interesting political miscellany

Have any doubts about my comparison with the French Revolution? Read about the most expensive real estate on Earth - One Hyde Park, in London - where apartments sell for almost a quarter of a Billion dollars, to secret shell corporations that disguise the owners from the nosy masses. That's a "B" in "billion."

Plus…..

And shifting over to provocative potpourri... The most religious states show highest rates of anti-depressant use.

merchants-of-doubt1Does this really surprise you?  The origins of the Tea Party - and climate denialism - in the  tobacco industry. (See also Merchants of Doubt, by Naomi Oreskes and Eric M. Conway, as well as my article: Distinguishing Climate "Deniers" from "Skeptics.")

Lipstick on a pig? Reince Priebus gives GOP prescription for the future.  Sorry. I miss Barry Goldwater and William F. Buckley, true conservative intellects who enjoyed high-level argument and science, who reacted to bad outcomes by changing their minds, and who above all believed in negotiation.  Even, occasionally compromise. If Mr. Priebus and his colleagues ever decide to get serious, the great result will be to stop Barry Goldwater spinning in his grave.

Oh, but then - when you least expect it - sanity appears to be flowering in one area, at least, and some Republicans are leading the way!  California GOP Representative Dana Rohrabacher's Respect State Marijuana Laws Act (H.R. 1253) is far from the only bill in Congress that would wind down the federal war on weed.  But unlike the efforts of liberal Democrats who want to remove marijuana from Schedule I of the Controlled Substances Act, this bill or something like it may have a decent shot at passing in the not-too-distant future.  I can't believe it.  This madness seems finally to be ebbing. And if that insanity can ebb, let's work on others?

5) And finally, regarding gun control...

Did you notice that for a decade liberals were quiet about this issue?  And even now,  spurred by stunning tragedies, all most of them are asking for is background checks and a restored limit on assault weapons.  Why so little?  Simple.  Under Bush, many liberals started quietly arming themselves. Despite noise from some irredentist lefties, many liberals (a totally different species) are fine with responsible and accountable weapon ownership. Like their own.

If we are going to debate an issue, let's start with clean facts.  Yes, Mother Jones has a left-ish perspective.  But this set of graphics (Challenging the Myth that Guns Stop Crime) is effective when they take on some of the fibs being told by the NRA.

JEFFERSONRIFLEAgain, I claim the middle ground. Frankly, I am more sympathetic with moderate gun owners than Mother Jones is. In fact, many liberals and moderates understand the undercurrent motive that makes the gun folk dig in their heels… a fear of eventual confiscation of all personal weapons.

A fear that I go into, with some evenhandedness and detail, in my article, The Jefferson Rifle: Guns and the Insurrection Myth.

I've said it before.  Simply screaming aloud the second half of the Second Amendment will not make the first half go away.  And that first half (twelve words) will serve as a loophole wide enough to drive a bulldozer through, if some future panicking public and a new Court decide to "well-regulate" the "militia." You guys need another, better amendment. And I am offering one that liberals would help you to pass.

Again, most Americans don't wish to eliminate personal gun ownership, and would join in rising up, if it were ever tried. They simply want more responsibility and accountability, the very thing that we achieved with motor vehicles....

But the Slippery Slope Syndrome poisons so many issues on the national agenda. Look at it.  Face it.  Then do the unexpected.  Negotiate.

Sunday, January 13, 2008

Disparities of taxation and wealth? Time to choose between ideology and civilization

The never-ending tide of troglodytic microcephaly from Republican candidates has the older, mainstream conservative intelligencia wringing its hands in near-despair. What kind of Twilight Zone do we live in, when GOP icon Alan Greenspan gives his highest presidential rating to Bill Clinton and by-far lowest rating ever to George W. Bush?

A veritable flood of former Republican standard bearers, like Paul Craig Roberts (the “father of Reaganomics”) have deserted, along with large swathes of the professional caste, from intelligence and military officers to scientists. Heck, rumors have it that the state of Arizona draws half its power from coils placed around the spinning in Barry Goldwater's grave.

Now, Bush family friend and renowned economic forecaster John Mauldin has weighed in.

"Far too many in both parties tell a frustrated America what it wants to hear, rather than the economic reality. The Republicans have some of the worst offenders."

John goes on with a riff about Mike Huckabee's "Fair Tax". Here's an excerpt:

"Fair Tax proponents want a 23% sales tax to replace every type of government tax. No more income, corporate, social security, or Medicare taxes. And everyone gets a $5,000 or so "prebate" which covers the taxes up to the poverty level. What could be simpler or more fair?

"First of all, the 23% they talk about is really 30%. Under the proposal, if an item sells for $100, then $23 of that would go to the government (said to be tax-inclusive). That means the item really costs $77 and the tax is an additional $23 or about 30% (said to be the tax-exclusive rate). Add an average 7% for state sales tax and we are now up to 37%. But wait, it gets worse.”


Bruce Bartlett writes this week in the Wall Street Journal: "A 2000 estimate by Congress's Joint Committee on Taxation found the tax inclusive rate would have to be 36% and the tax-exclusive rate would be 57%. In 2005, the U.S. Treasury Department calculated that a tax exclusive rate of 34% would be needed just to replace the income tax, leaving the payroll tax in place. But if evasion were high then the rate might have to rise to 49%. If the Fair Tax were only able to cover the limited sales tax base of a typical state, then a rate of 64% would be required (89% with high evasion)."

Mauldin: "Further, this is a tax hike on the middle class. If you make less than $15,000 you win. If you make more than $200,000 you win, because you actually save more and spend less of your income. This is a nice populist proposal which sounds good but is economically challenged. It only works on someone who has not read about the problems. Let me give you two links if you want to read more. One is to Bartlett's article and the other is to the people at Fact Check.org.

"The call by Huckabee and others to deport 12,000,000 illegal immigrants is simply economic suicide. It would create a depression (not just a minor recession) in short order. Let's reduce productivity by 10 15%. Let's reduce consumer spending by 7-8%. Shut down hundreds of thousands of businesses who could not get workers they need. Who will pick the crops? Or do any of a hundred jobs that Americans don't want to do? It would drive up labor costs and create inflation. It would be a disaster of Biblical proportions. Now, I am all for controlling the border. I want to know who is coming in. But we have to deal with reality, and the reality is that we need those workers who are here. The economy simply will not function without them."



HOW IS ALL THIS RELEVANT?

Why am I quoting all this from John Mauldin? Because it is vital for us to remember that not all of our conservative neighbors have gone stark, jibbering mad. Some are merely in a deep state of denial. Able to criticize bits and pieces of what has happened to their movement - as John does, above - though without (alas) allowing themselves to see the big picture. How the neocons, who hijacked conservatism, have relentlessly and deliberately reversed nearly every prudent principle that it used to stand for.

NoLosersTAx(In fact, I agree with John that IRS rules should be slashed and simplified. The problem is that every interest group lays down a ferocious veto, whenever their favorite offsets are under threat. There IS a solution! It is called "No Losers"... in which the tax code is slimmed by computer algorithm, seeking the minimum number of rules, under special, pre-set boundary conditions that follow a simple rule. For the 100 most common or representative tax profiles, the simplification algorithm makes no change in NET tax paid.

(Thus, everybody winds up paying the same, even if their favorite deduction goes away. It sounds magical, but, believe it or not, this really can be done! At very low expense, this experiment could at least present a proposed reform under which nobody’s ox is gored and the number of rules shrinks. Well, tax accountants would hate it. But that's for another time.)

In fairness, let's hear John out when he criticizes one of the catechisms of the left... that the rich aren't paying their fair share, since the Bush tax cuts. "They want to "tax the rich" and make more for middle class tax cuts. Sounds nice, but let's look at the facts. The bottom half of taxpayers only pay 3% of the total income taxes collected, which is 1% less than before the Bush tax cuts. 44% of the US population, or 122 million people, pays no income tax at all.

"The richest 1% of the country pay 39% of all taxes ($365,000 income and up), which is 3% more than before the Bush tax cuts, under the Clinton tax policy. The top 5% ($145,000) pay 60% of all taxes (up 5% from 1999); and the top 25%, with income over $62,000, pays paid 86% of all taxes. It seems to me that the rich are paying their fair share. Every category is paying more now than under Clinton, except the bottom 75%."


SavingCapitalismNeofeudalismThis notion that the rich are paying more nowadays - even after receiving fantastic tax cutes (during time of war) - sounds odd...

...and it turns out that it is. I hate to say it, but John is being just a bit disingenuous here. The middle class is paying less tax and the rich are paying more... because of a vast swing in actual wealth -- including income-generating property -- from the middle to the top.

This flow has accelerated so fast that the super-rich are, indeed, paying more net taxes, despite their low tax rates.


TIME TO CHOOSE... BETWEEN IDEOLOGY AND CIVILIZATION

Another way to put this would be to ask “How much tax is paid on the top 1% (by accumulated dollar value) of wealth, rather than the top 1% (by population) of wealth owners. That tax has inarguably gone down. Way down. Resulting in yet further wealth transfer in that same direction, so that more percentage points of overall wealth are owned by that top 1% of owners.

Thus, John manages to make a truly terrifying vicious spiral -- threatening a new age of feudal style aristocratism -- sound benign. He should know better.

In other words, the very same facts that he uses to deflect criticism of the Bush Tax Cuts actually show just how far those cuts have skewed the system in favor of those who are raking it in. Without comparing these stats of gross tax payments to the growing disparity in actual wealth, they are deeply misleading. In fact, if you seek the one common thread, among every Republican candidate’s tax proposals, it is this. All of them seek ways to accelerate further transfer of wealth percentage shares into the hands of the top 1% of individual owners.

Yes, some of the dems’ suggested means of reversing this trend are questionable, in their own right. I am far less interested in solutions that are confiscatory than those aimed at regulating and counterbalancing activities that are - in themselves - criminally stupid, market-warping acts of collusion by a narrow clade of golf buddies. Simply prevent outrageous thievery and re-introduce market forces at the top! That ought to solve the problem. Certainly defenders of idealised markets tell us so!

For example, try breaking up interlocking directorates (Republican Teddy Roosevelt could have told you that!) Or adjusting the rules of compensation for CEOs, directors, etc, so that their rewards come largely from ten-year company stock options! That would reshape the playing field so that managers’ best interests coincided with society’s. Oh, and those who run a company into the ground would not flutter away with 8-figure buyouts. The market for managerial talent would remain flat and fair. It would just remove the incentive for 10,000 golf buddies to conspire together to rob us all.

GuidedAllocation(Does nobody ever examine the fundamental premise-assumption underlying these godawful CEO compensation deals? The capitalist premise is that such vast payouts should attract brilliant people from other fields, until competition drives the pay levels back down!

(In effect, the golf buddies are telling us that they are mutant-level talents, like top basketball stars, worth any price, so the rules of supply/demand will never apply to them! Funny thing though. Their system to decide all this is a classic circle-jerk.)

We need to ponder whether it actually "defends market capitalism" when these wealth flows so severely alter our social structure that they threaten to entrench a quasi-feudal aristocracy. Don't forget who Adam Smith called the true and worst enemies of markets! In his day, socialism and bureaucratic regulation were FAR from the top enemies of market enterprise! Indeed, throughout human history, market enterprise had one major enemy. Conspiratorial oligarchy.

Those who style themselves as defenders of liberty and markets need to step back. They need to remember that the masters of Guided Allocation of Resources (GAR) are enemies of freedom, of every kind. We don’t need their clique to guide us. Or any clique. What we need is our Enlightenment back.


=== More political misc ====

See a bitter, but illuminating, ex-insider’s view of what’s become of TV news by veteran reporter/producer John Hockenberry, in MIT Technology Review. Especially depressing is the part where he tells of tryig to interview members of the bin Laden family, only to be thwarted from above.

Have I been crazy to suggest that there’s a lot more going on in the R’oil Desert Kingdom than the Bush Administration wants us to learn? You really, really need to read “Confessions Of A Terrorist,” which exposes one of the biggest smoking guns ever. Or at least, since scores of potential material witnesses, from the home country of most of the 9/11 hijackers, were whisked out of the US on luxury charters, without ever being questioned, on the same day that Americans were forbidden to fly.

WhyAmericaSleptFollowing up this article, I’d be interested if anybody has read Gerald Posner’s Why America Slept (Random House), is a lean, lucid retelling of how the CIA, FBI and U.S. leaders missed a decade's worth of clues and opportunities that if heeded, Posner argues, might have forestalled the 9/11 terrorist attacks. My interest is very narrow and specific, whether Posner mentions anything about FBI agents or others being re-assigned away from counter-terror duties, during the first eight months of the Bush Administration, in order to go skeleton hunting for dirt about the Clintons. So far, my sources on this are anecdotal, not statistical. If the numbers were as high as I suspect, it could be the biggest scandal of this entire, sordid period.

Finally, here are a few more points to add at the addendum following my main article: Ostrich Papers: How It Will Take All Decent Americans to Restore Decency to America...

* What if, in the middle of a declared state of dire emergency and an ongoing war -- one that was using up all American ground forces and devastating the budget -- a Democratic President (say, FDR) were to regularly walk away from his job and take more days off than any other in history? Even exceeding the earlier record set by Ronald Reagan? And setting this milestone with a whole year left before his term ran out? Would you Have let Bill Clinton get away with hurling our forces into harm’s way, then turning away to kick back with cronies for weeks at a stretch, on their new, mega-ranches?

inspectors-General
Over the past few months, two of the most high-profile inspectors general in government have faced public firing squads. As the Washington Post on its front page on Friday, Stuart Bowen, the inspector general tasked with investigating Iraq reconstruction, now faces an investigation himself. Several government agencies are examining charges that his office was involved in massive mismanagement and waste, the very sins he had been tasked with uncovering in Iraq. Most puzzlingly, over twenty-five of his employees earned more than General David Petraeus did last year. This article in the New Republic is naturally tilted-against the Bush Administration. But then, so are the facts.

Who was speaking about inspectors general two years ago? See my article: Free the Inspectors General. Amazing that such a simple and blatantly sensible suggestion gets no notice, alas.

--See more on the Economy: Past, Present and Future

David Brin
http://www.davidbrin.com