Quoting the Crisis

Jul 06

The Founding Fathers backed Thomas Piketty – and feared a powerful 1 percent
Joseph Blasi, salon.com
This 4th of July, remember the truth about founding fathers, and their prescient warnings about income inequalityMany of Amer­i­ca’s Founders believed that exces­sive wealth inequal­i­ty would be incom­pat­i­ble with hav­ing a rep­re­sen­ta­tiv…

The Founding Fathers backed Thomas Piketty – and feared a powerful 1 percent
Joseph Blasi, salon.com

This 4th of July, remember the truth about founding fathers, and their prescient warnings about income inequality

Many of Amer­i­ca’s Founders believed that exces­sive wealth inequal­i­ty would be incom­pat­i­ble with hav­ing a rep­re­sen­ta­tiv…

More U.S. Parents Tell College-Age Children: You’re on Your Own -

Andrew O’Connell, hbr.org

American parents are more likely now than in recent years to say that their children should pay for college: The proportion of adults saying their offspring should pay for most college costs rose from 27% to 32% over the past two yea…

The next great financial crash: How our corporate overlords are setting us up to fail (again)
Thom Hartmann, AlterNet, salon.com
While profits soar, wages continue to stagnate and anti-tax zealots gut the safety net — a recipe for disasterThe denial of fun­da­men­tal eco­nom­ic prin­ci­ples is set­ting the world up for anoth­er Great Crash.Although wages have been fla…

The next great financial crash: How our corporate overlords are setting us up to fail (again)
Thom Hartmann, AlterNet, salon.com

While profits soar, wages continue to stagnate and anti-tax zealots gut the safety net — a recipe for disaster

The denial of fun­da­men­tal eco­nom­ic prin­ci­ples is set­ting the world up for anoth­er Great Crash.

Although wages have been fla…

Ronald Reagan stuck it to millennials: A college debt history lesson no one tells
Peter Lunenfeld, salon.com
Dramatic, awful changes occurred on my generation’s watch — and it amounts to a fiendishly successful conspiracyThat nos­tal­gic time of year for newly mint­ed col­lege grads and their pro­fes­sors has now con­clud­ed. I admit to being affect­…

Ronald Reagan stuck it to millennials: A college debt history lesson no one tells
Peter Lunenfeld, salon.com

Dramatic, awful changes occurred on my generation’s watch — and it amounts to a fiendishly successful conspiracy

That nos­tal­gic time of year for newly mint­ed col­lege grads and their pro­fes­sors has now con­clud­ed. I admit to being affect­…

Jun 19

Best-paid CEOs perform the worst
Cory Doctorow, boingboing.net
In Per­for­mance for Pay? The Rela­tion Between CEO Incen­tive Com­pen­sa­tion and Future Stock Price Per­for­mance , a paper from U of Utah business-school pro­fes­sors, the rela­tion­ship between exec­u­tive per­for­mance and exec­u­tive pay is…

Best-paid CEOs perform the worst
Cory Doctorow, boingboing.net

In Per­for­mance for Pay? The Rela­tion Between CEO Incen­tive Com­pen­sa­tion and Future Stock Price Per­for­mance , a paper from U of Utah business-school pro­fes­sors, the rela­tion­ship between exec­u­tive per­for­mance and exec­u­tive pay is…

Jun 10

Piketty’s inherited-wealth dystopia: private capital millionaires multiply
Cory Doctorow, boingboing.net
Thomas Piket­ty’s much-discussed eco­nom­ics best­seller Cap­i­tal in the Twen­ty First Cen­tu­ry proph­e­sies a future where inher­it­ed wealth dom­i­nates the world, because the rate of return on cap­i­tal out­strips the rate of growth in the…

Piketty’s inherited-wealth dystopia: private capital millionaires multiply
Cory Doctorow, boingboing.net

Thomas Piket­ty’s much-discussed eco­nom­ics best­seller Cap­i­tal in the Twen­ty First Cen­tu­ry proph­e­sies a future where inher­it­ed wealth dom­i­nates the world, because the rate of return on cap­i­tal out­strips the rate of growth in the…

Jun 08

The 4% Non-Solution -

Kenneth Rogoff, project-syndicate.org

The idea of permanently raising inflation targets to 4%, first proposed by IMF chief economist Olivier Blanchard, has been endorsed by a number of other academics, including, most recently, Paul Krugman. Unfortunately, the problem of ensuring a…

The Great Credit Mistake by Adair Turnerproject-syndicate.org
LON­DON – Before the finan­cial cri­sis erupt­ed in 2008, pri­vate cred­it in most devel­oped economies grew faster than GDP. Then cred­it growth col­lapsed. Whether that fall reflect­ed low demand fo …

The Great Credit Mistake by Adair Turner
project-syndicate.org

LON­DON – Before the finan­cial cri­sis erupt­ed in 2008, pri­vate cred­it in most devel­oped economies grew faster than GDP. Then cred­it growth col­lapsed. Whether that fall reflect­ed low demand fo …

May 13

Mapping Three Decades of Rising Income Inequality, State by State
Richard Florida, theatlanticcities.com
Income inequal­i­ty has risen con­sid­er­ably in the Unit­ed States and across the entire advanced world.Most research has focused on grow­ing inequal­i­ty with­in and across nations. What’s less clear is to what degree income inequal­i­ty has…

Mapping Three Decades of Rising Income Inequality, State by State
Richard Florida, theatlanticcities.com

Income inequal­i­ty has risen con­sid­er­ably in the Unit­ed States and across the entire advanced world.

Most research has focused on grow­ing inequal­i­ty with­in and across nations. What’s less clear is to what degree income inequal­i­ty has…

May 09

Copyright meets broadcasting in Geneva -

By Heini Järvinen, edri.org

The 27th ses­sion of the World Intel­lec­tu­al Prop­er­ty Orga­ni­za­tion´s Stand­ing Com­mit­tee on Copy­right and Relat­ed Rights (SCCR) took place from 28 April to 2 May in Gene­va. The Com­mit­tee …

Apr 22

More From Ex-SEC Lawyer James Kidney on the Agency’s Failing -

Yves Smith, nakedcapitalism.com

Susan Beck at American Lawyer got a trove of documents as a result of a FOIA on an SEC inspector general report on whether the agency’s suit against Goldman over an Abacus CDO was politically motivated. Beck identified one attorney who was critica…

Did Derivatives Worsen the Eurozone Sovereign Debt Crisis? -

Yves Smith, nakedcapitalism.com

Yves here. This post summarizes a paper that argues that derivatives, specifically credit default swaps, exacerbated the severity of the European sovereign debt tsuris. This sort of analysis deserves a wider audience, precisely because the…

Mar 31

Class War with a Smiley Face -

When we hear about wage theft, we usually think of cases involving low-wage-earning retail or fast-food workers. But middle-class professionals have also frequently been victims of the practice. For example, like the Silicon Valley workers, nurses have had their earnings artificially depressed by wage-fixing cartels of their own.

More broadly, middle class wages have declined or stagnated for years now (depending on which income group you look at), with economic gains being siphoned off by those at the top. It’s not just poor people or blue- and pink-collar types who are hurting . As the Silicon Valley wage-fixing case demonstrates, even upper middle class professionals have become victims of the one percenters’ class warfare.

Two of the inequality-themed books I’ve read in the past couple of years, Chris Hayes’s Twilight of the Elites and Göran Therborn‎’s The Killing Fields of Inequality made similar arguments about how the masses can take back the world from the one percent. Since both are men of the left, I had expected them to argue, as Adolph Reed recently has, that the answer is to bring back the labor movement. But instead, they both concluded that the key to the fight is the middle class.

Therborn’s analysis is that, due to the decline of the industrial working class, labor unions are no longer well positioned to take a central role in these struggles. Hayes’s argument is that, while it is often very difficult to persuade poor and working class people that they are entitled to anything better, “[T]here are few forces more powerful in politics than downward mobility, the dispossession of the formerly privileged.”

(Source: azspot)

“Few topics in American society have more myths and stereotypes surrounding them than poverty, misconceptions that distort both our politics and our domestic policy making. They include the notion that poverty affects a relatively small number of Americans, that the poor are impoverished for years at a time, that most of those in poverty live in inner cities, that too much welfare assistance is provided and that poverty is ultimately a result of not working hard enough. Although pervasive, each assumption is flat-out wrong.” — Mark R. Rank (via azspot)

(via azspot)

“The wealthy 0.01% minority who rule over the 90% majority understands that the future of their system depends on convincing or paying off 9.99% of the population who become the opinion leaders, the managers, the foremen, the supervisors, the small businessmen and the other shock troops of the system. The rich are like the pathetic men who frequent red-light districts — they must pay for it — and the right wing columnists/celebrities/media hacks/researchers do it for money, often working in the political equivalent of brothels, called think tanks. The choices offered young writers, journalists and academics who aspire to earn a decent living at their craft are not great today. There are many more opportunities to voice opinions supporting the system than to criticize it.” — Capitalism’s Intellectual Prostitutes (via azspot)

(via azspot)