Archive for Globalization
On Friday, global markets had their biggest daily loss ever. Larger than the Lehman Brothers bankruptcy and the Black Monday Crash of 1987. There have since been lots of stories of regret among Brexit ‘Leave’ voters, many of whom seem not to have understood what they were voting for.
All around him an ideological crisis was spreading across Middle America as it continued its long fall into dependency: median wages down across the country, average income down, total wealth down in the past decade by 28 percent. For the first time ever, the vaunted middle class was not the country’s base but a disenfranchised minority, down from 61 percent of the population in the 1970s to just 49 percent as of last year. As a result of that decline, confusion was turning into fear. Fear was giving way to resentment. Resentment was hardening into a sense of outrage that was unhinging the country’s politics and upending a presidential election.
Still, Setser believes in the “‘basic guarantees’ of the working class,” Salow writes. That his basic work ethic and work history will guarantee his home, cars, and annual trip to the lake will remain intact. He’s planning on remarrying. And he’s leaning towards Trump:
“We’re getting to the point where there aren’t really any good options left,” he said. “The system is broken. Maybe its time to blow it up and start from scratch, like Trump’s been saying.”
Krystal [his 16 year-old] rolled her eyes at him. “Come on. You’re a Democrat.”
“I was. But that was before we started turning into a weak country,” he said. “Pretty soon there won’t be anything left. We’ll all be flipping burgers.”
“Fine, but so what?” she said. “We just turn everything over to the guy who yells the loudest?”
Setser leaned into the table and banged it once for emphasis. “They’re throwing our work back in our face,” he said. “China is doing better. Even Mexico is doing better. Don’t you want someone to go kick ass?”
Globalization. Financialization. Greed, one of the deadly sins. Nothing a little ass-whupping won’t fix.
Daniel Engber at Slate has a lengthy but worthwhile examination of the state of psychological research pertaining to success. Angela Duckworth’s notion of “Grit” in particular, but other measures as well. Americans tell themselves hard work and perseverance always win out. It’s just not true. While Duckworth began her research looking at which West Point cadets had the “grit” to survive Beast Week without quitting, the quality appears to have had limited applicability:
Even the task of graduating from West Point itself doesn’t really compare to the trials of Beast. When Duckworth looked at students’ grades and “military performance scores” during their first year at school, she found that grit offered little guidance on how they’d handle the rest of the United States Military Academy curriculum. The whole candidate score—that old-fashioned, talent-based assessment—did much better. Considering that three-quarters of the students who fail to finish at West Point flunk during the post-Beast curriculum, those first seven gritty weeks appear to represent a special case, and one of marginal importance.
That is, Engber writes, “Grit matters, but only in specific situations that require strength of will.” Chris Setser might be “gritty.” He might believe Trump is. But grit alone will neither secure the “basic guarantees” to which Middle America once believed it was entitled, nor will it be enough for Trump. He seems to believe he can bully and bluster his way through any challenge, and actually knowing anything about the basic functions of government won’t matter. Trump, a former private military academy student, might have learned the value of grit, but doesn’t seemed to value other qualities that go into making an effective world leader.
One can see dead factory after dead factory stretched out for 75 miles east of here. Some textile facilities, but mostly empty furniture factories. Tens of thousands of Setsers have lost work over the last couple of decades. Hard work and perseverance were not enough to secure their futures. But many may be willing to vote for anyone who will give them back the illusion that they would. The fall elections from the presidency on down may turn on which party makes the better case. Or they might just settle for the guy who promises to kick some nonspecific ass.
(Cross-posted from Hullabaloo.)
The establishment Republican ideology prioritizes capital above all else. For them, the market does not exist to serve people: people exist to serve the market. Unregulated capitalism can never fail; it can only be failed by those too lazy, useless and unproductive to serve and profit by it. It is a totalizing ideology as impractical as state communism but lacking the silver lining of its species-being idealism; as impervious to reason as any cult religion, but lacking the promise of community, salvation or utopia; as brutal as any dictatorship, but without the advantage of order and security. Worst of all, it blames its victims for its failure to provide solutions to their needs.
Too strong, you think? Consider this excerpt from the NRO piece in which Kevin Williamson condemns Trump’s supporters as apostates from the one, true faith — his (emphasis mine):
It is immoral because it perpetuates a lie: that the white working class that finds itself attracted to Trump has been victimized by outside forces. It hasn’t. … They failed themselves.
Dylan Ratigan’s August 2011 on-camera meltdown is as close as reality has ever come to Howard Beale’s Network rant remembered in Digby’s sidebar.
What made it a powerful moment was he was right:
Tens of trillions of dollars are being extracted from the United States of America. Democrats aren’t doing it, republicans aren’t doing it, an entire integrated system, banking, trade and taxation, created by both parties over a period of two decades is at work on our entire country right now.
Elias Isquith at Salon this morning interviews Les Leopold, Labor Institute executive director and president, about his new book “Runaway Inequality: An Activist’s Guide to Economic Justice.” Ratigan called what is happening “being extracted.” Leopold calls it “financial strip mining,” and a far cry from what free marketeers and neoliberals taught would happen from lower taxes and fewer regulations:
Democratic leaders have finally figured out that “The Bern” has “tapped into the zeitgeist of college-age voters, a key demographic for the party in a presidential election year,” Politico reported yesterday. In spite of Hillary Clinton’s momentum coming out of her Nevada caucuses win on Saturday, Sanders’ unexpected strength and fundraising ability has Democrats studying his message and trying to figure out how to incorporate it into their own:
… Democrats, particularly in the House, are actively strategizing about how they can reach the young, white voters who propelled Sanders to victory in New Hampshire and a near win in Iowa. And if Sanders can rocket out of obscurity to challenge a political heavyweight like Clinton, they admit it would be wise for Democrats to try and incorporate his most successful messages.
“I think Bernie Sanders has a very positive message,” Minority Leader Nancy Pelosi (D-Calif.) declared at a recent party meeting in Baltimore, echoing comments she’s made elsewhere. “It’s about fairness, it’s about opportunity. … I’m very proud of the way Sen. Sanders has expanded the universe of young people especially interested in the political process.”
Still, the progressive love for Sanders is something of a catch-22 for House Democrats. The majority of Democrats in the House are liberal but the party needs to win support from blue collar and moderate voters to retake seats in swing districts.
Via Raw Story:
In a video uploaded to YouTube, a gathering of workers at an Indianapolis air conditioning manufacturing plant are stunned and enraged when told they’ll soon be out of work because the company is moving their jobs to Mexico.
Not all drugs have to be injected, ingested or inhaled. Yesterday, I drew parallels between the man-made crisis on Wall Street and the man-made water crisis in Flint Michigan. The reason is that the amoral pursuit of personal gain is an addiction that goes far beyond Wall Street. The Big Short made a big impression, can you tell?
The Guardian’s Tim Adams spoke with “The Big Short” author Michael Lewis about the film’s protagonists:
The idea that the madness was going to get worse did not occur to him. “In fact, it got worse and worse to the point where people were paid unbelievable fortunes just to do stupid things with money. Even the movie can’t really get this across. The movie gets across that there was a bet and these smart guys were on the right side of the bet. And those smart guys made hundreds of millions of dollars. That inevitably leaves you thinking that the people on the other side of the bet lost. Of course, the banks went down. But the real story is the actual people on the other side of the bet also got very rich despite the banks collapsing. If no matter what side of the bet you are on things are still going to work out for you, the world is upside down.”
“Now, I’ll tell you what, my friend,” said Scrooge, “I am not going to stand this sort of thing any longer. And therefore,” he continued, leaping from his stool, and giving Bob such a dig in the waistcoat that he staggered back into the Tank again; “and therefore I am about to raise your salary!”
CEOs who don’t act like CEOs are a rare breed, and newsworthy. Even more so when they are not fictional. Susie Madrak highlighted one the other day at Crooks and Liars. Seems this guy found out it paid off to double the salary of his entry-level employees. Blasphemy! Rush Limbaugh branded him a socialist. Need we say more?
In April, Dan Price, CEO of the credit card payment processor Gravity Payments, announced that he will eventually raise minimum pay for all employees to at least $70,000 a year.
The move sparked not just a firestorm of media attention, but also a lawsuit from Price’s brother and co-founder Lucas, claiming that the pay raise violated his rights as a minority shareholder.
But six months later, the financial results are starting to come in: Price told Inc. Magazine that revenue is now growing at double the rate before the raises began and profits have also doubled since then.
On top of that, while it lost a few customers in the kerfuffle, the company’s customer retention rate rose from 91 to 95 percent, and only two employees quit. Two weeks after he made the initial announcement, the company was flooded with 4,500 resumes and new customer inquiries jumped from 30 a month to 2,000 a month.
From Europe to the Pacific rim, capitalism marches on. Right over democracy. Guess what? People don’t like it. You remember people? They’re the ones, as Pope Francis suggested, the economy is supposed to serve, not rule:
Hundreds of thousands of people marched in Berlin on Saturday in protest against a planned free trade deal between Europe and the United States that they say is anti-democratic and will lower food safety, labor and environmental standards.
The organizers — an alliance of environmental groups, charities and opposition parties — said 250,000 people were taking part in the rally against free trade deals with both the United States and Canada, far more than they had anticipated.
Opposition to the so-called Transatlantic Trade and Investment Partnership (TTIP) has risen over the past year in Germany, with critics fearing the pact will hand too much power to big multinationals at the expense of consumers and workers.
“What bothers me the most is that I don’t want all our consumer laws to be softened,” Oliver Zloty told Reuters. “And I don’t want to have a dictatorship by any companies.”
Yet that is what it appears we have. We are moving towards “authoritarian capitalism” like China and Singapore, says Slovenian philosopher Slavoj Žižek:
President Calvin Coolidge once said, “The chief business of the American people is business.” But in examining the debate over the Trans-Pacific Partnership, Trade Promotion Authority, etc., one can see the business of business is not America.
It was clear last week that the TPP and TPA (fast track) were not dead, but unlike Monty Python’s parrot, really just resting. Politico reports on maneuvers by House Speaker John Boehner and Republican leaders to revive fast track:
Under the emerging plan, the House would vote on a bill that would give Obama fast-track authority to negotiate a sweeping trade deal with Pacific Rim countries, sending it to the Senate for final approval. To alleviate Democratic concerns, the Senate then would amend a separate bill on trade preferences to include Trade Adjustment Assistance, a worker aid program that Republicans oppose but that House Democrats have blocked to gain leverage in the negotiations over fast-track.
Decoupling TAA and TPA might be a non-starter with many Democrats. But the political mechanics are not as interesting as the broader trajectory of dealings between government and business.
In any of these deals, no matter what the promised benefits, the general public always seems to come out holding the short end of the stick. You can smell it. Somebody is going to make a lot of money. It’s just never us. We get to do the paying.