Posts Tagged ‘Trickle Down Economics’

John Quiggin on the Absolute Failure of Austerity

January 9, 2019

One of the other massively failing right-wing economic policies the Australian economist John Quibbin tackles in his book Zombie Economics: How Dead Ideas Still Walk Among Us (Princeton: Princeton University Press 2010) is expansionary austerity. This is the full name for the theory of economic austerity foisted upon Europeans and Americans since the collapse of the banks in 2008. It’s also the term used to describe the policy generally of cutting government expenditure in order to reduce inflation. Quiggin shows how, whenever this policy was adopted by governments like the American, British, European and Japanese from the 1920s onwards, the result has always been recession, massive unemployment and poverty.

He notes that after the big bank bail-out of 2008, most economists returned to Keynesianism. However, the present system of austerity was introduced in Europe due to need to bail out the big European banks following the economic collapse of Portugal, Italy, Greece and Spain, and the consequent fall in government tax revenue. Quiggin then goes on to comment on how austerity was then presented to the public as being ultimately beneficial to the public, despite its obvious social injustice, before going on to describe how it was implemented, and its failure. He writes

The injustice of making hospital workers, police, and old age pensioners pay for the crisis, while the bankers who caused it are receiving even bigger bonuses than before, is glaringly obvious. So, just as with trickle-down economics, it was necessary to claim that everyone would be better off in the long run.

It was here that the Zombie idea of expansionary austerity emerged from the grave. Alesina and Ardagna, citing their dubious work from the 1990s, argued that the path to recovery lay in reducing public spending. They attracted the support of central bankers, ratings agencies, and financial markets, all of whom wanted to disclaim responsibility for the crisis they had created and get back to a system where they ruled the roost and profited handsomely as a result.

The shift to austerity was politically convenient for market liberals. Despite the fact that it was their own policies of financial deregulation that had produced the crisis, they used the pretext of austerity to push these policies even further. The Conservative government of David Cameron in Britain has been particularly active in this respect. Cameron has advanced the idea of a “Big Society”, meaning that voluntary groups are expected to take over core functions of the social welfare system. The Big Society has been a failure and has been largely laughed off the stage, but it has not stopped the government from pursuing a radical market liberal agenda, symbolized by measures such as the imposition of minimum income requirements on people seeking immigrant visas for their spouses.

Although the term expansionary austerity has not been much used in the United States, the swing to austerity policies began even earlier than elsewhere. After introducing a substantial, but still inadequate fiscal stimulus early in 2009, the Obama administration withdrew from the economic policy debate, preferring to focus on health policy and wait for the economy to recover.

Meanwhile the Republican Party, and particularly the Tea Party faction that emerged in 2009, embraced the idea, though not the terminology, of expansionary austerity and in particular the claim that reducing government spending is the way to prosperity. In the absence of any effective pushback from the Obama administration, the Tea Party was successful in discrediting Keynesian economic ideas.

Following Republican victories in the 2010 congressional elections, the administration accepted the case for austerity and sought a “grand bargain” with the Republicans. It was only after the Republicans brought the government to the brink of default on its debt in mid-2011 that Obama returned to the economic debate with his proposed American Jobs Act. While rhetorically effective, Obama’s proposals were, predictably, rejected by the Republicans in Congress.

At the state and local government level, austerity policies were in force from the beginning of the crisis. Because they are subject to balanced-budged requirements, state and local governments were forced to respond to declining tax revenues with cuts in expenditure. Initially, they received some support from the stimulus package, but as this source of funding ran out, they were forced to make cuts across the board, including scaling back vital services such as police, schools, and social welfare.

The theory of expansionary austerity has faced the test of experience and has failed. Wherever austerity policies have been applied, recovery from the crisis has been halted. At the end of 2011, the unemployment rate was above 8 percent in the United States, the United Kingdom, and the eurozone. In Britain, where the switch from stimulus to austerity began with the election of the Conservative-Liberal Democratic coalition government in 2010, unemployment rose rapidly to its highest rate in seventeen years. In Europe, the risk of a new recession, or worse, remains severe at the time of writing.

Although the U.S. economy currently shows some superficial signs of recovery, the underlying reality is arguably even worse than it now is in Europe. Unemployment rates have fallen somewhat, but this mainly reflects the fact that millions of workers have given up the search for work altogether. The most important measure of labour market performance, the unemployment-population ration (that is, the proportion of the adult population who have jobs) fell sharply at the beginning of the cris and has never recovered. On the other hand, the forecast for Europe in the future looks even bleaker as the consequences of austerity begins to bite.

The reanimation of expansionary austerity represents zombie economics at its worst. Having failed utterly to deliver the promised benefits, the financial and political elite raised to power by market liberalism has pushed ahead with even greater intensity. In the wake of a crisis caused entirely by financial markets and the central banks and regulators that were supposed to control them, the burden of fixing the problem has been placed on ordinary workers, public services, the old, and the sick.

With their main theoretical claims, such as the Efficient Markets Hypothesis and Real Business Cycle in ruins, the advocates of market liberalism have fallen back on long-exploded claims, backed by shoddy research. Yet, in the absence of a coherent alternative, the policy program of expansionary austerity is being implemented, with disastrous results. (pp. 229-32, emphasis mine).

As for Alesina and Ardagna, the two economists responsible for contemporary expansionary austerity, Quiggin shows how their research was seriously flawed, giving some of their biggest factual mistakes and accuracies on pages 225 and 226.

Earlier in the chapter he discusses the reasons why Keynes was ignored in the decades before the Second World War. The British treasury was terrified that adoption of government intervention in some areas would lead to further interventions in others. He also quotes the Polish economist, Michal Kalecki, who stated that market liberals were afraid of Keynsianism because it allowed governments to ignore the financial sector and empowered working people. He writes

Underlying the Treasury’s opposition to fiscal stimulus, however, was a fear, entirely justified in terms of the consequences for market liberal ideology, that a successful interventionist macroeconomic policy would pave the way for intervening in other areas and for the end of the liberal economic order based on the gold standard, unregulated financial markets, and a minimal state.

As the great Polish economist Michal Kalecki observed in 1943, market liberal fear the success of stimulatory fiscal policy more than its failure. If governments can maintain full employment through appropriate macroeconomic policies, they no longer need to worry about “business confidence” and can undertake policies without regard to the fluctuations of the financial markets. Moreover, workers cannot be kept in line if they are confident they can always find a new job. As far as the advocates of austerity are concerned, chronic, or at least periodic, high unemployment is a necessary part of a liberal economic order.

The fears of the Treasury were to be realized in the decades after 1945, when the combination of full employment and Keynsian macro-economic management provided support for the expansion of the welfare state, right control of the financial sector, and extensive government intervention in the economy, which produced the most broadly distributed prosperity of any period in economic history. (p. 14).

So the welfare state is being dismantled, the health service privatized and a high unemployment and mass poverty created simply to maintain the importance and power of the financial sector and private industry, and create a cowed workforce for industry. As an economic theory, austerity is thoroughly discredited, but is maintained as it was not by a right-wing media and political establishment. Robin Ramsay, the editor of Lobster, said in one of his columns that when he studied economics in the 1970s, monetarism was so discredited that it was regarded as a joke by his lecturers. He then suggested that the reason it was supported and implemented by Thatcher and her successors was simply because it offered a pretext for their real aims: to attack state intervention and the welfare state. It looks like he was right.

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John Quiggin on the Absolute Failure of Trickle-Down Economics

January 8, 2019

John Quiggin is an economics professor at the university of Queensland Down Under. His 2010 book, Zombie Economics, is a very thorough demolition of the economic theories that have formed the current dogma since the election of Thatcher and Reagan in 1979 and 1980.

One of the theories he refutes is ‘trickle-down’ economics. This is theory that if you act to give more wealth to the rich through tax cuts, deregulation and privatization, this wealth will trickle down to benefit those at the bottom of the socio-economic ladder. It was one of the central planks of Thatcherism. And even in the 1980s, it’s effectiveness was highly dubious. I remember watching a documentary about it on the Beeb, which illustrated the theory with a pyramid of champagne glasses. When the glasses at the top of the pyramid were filled to overflowing, the champagne flowed down to the glasses lower down. So, Thatcher and her cronies claimed, their programme of free market economics would benefit everyone in society by enriching those at the top, from whom it would trickle down to the rest of us. If I remember correctly, the programme itself argued this wasn’t happening. And it hasn’t since. on pages 155 to 157 Quggin shows how the policy has not worked in America, and in fact the poor are massively poorer off. He writes

The experience of the United States during the decades of market liberalism, from the 1970s until the Global Financial Crisis, gives little support for the trickle-down view. The gross domestic product of the United States grew solidly in this period, if not as rapidly as during the Keynesian postwar boom. More relevantly to the trickle-down hypothesis , the incomes and wealth of the richest Americans grew spectacularly. Incomes at the fifth percentile of the income distribution doubled and those for the top 0.1 per cent quadrupled.

By contrast, the gains to households in the middle of the income distribution have been much more modest. As shown in figure 4.2, real median household income rose from forty-five thousand dollars to just over fifty thousand dollars between 1973 (the last year of the long postwar expansion) and 2008. The annual rate of increase was 0.4 per cent.

For those at the bottom of the income distribution, there have been no gains at all. Real incomes for the lower half of the distribution have stagnated. The same picture emerges if we look at wages. Median real earning for full-time year-round male workers have not grown since 1974. For males with high school education or less, real wages have actually declined. According to estimates made by the Economic Policy Institute, the average annual earnings of twenty-five to twenty-nine-year-old high school graduates, expressed in 2005 values, fell from #30,900 in 1970 to $25,90 in 2000, and have stagnated since then.

Since 2000, median household incomes have actually fallen, the first time in modern history that such a decline has taken place over a full business cycle. One result can be seen by looking at the proportion of households living below the poverty line. The poverty rate declined steadily during the postwar Keynsian era. It has remained essentially static since 1970, falling in booms, but rising again in recessions.

Unlike most developed countries, the United States has a poverty line fixed in terms of absolute consumption levels and based on an assessment of a poverty-line food budget undertaken in 1963. The proportion of Americans below this fixed poverty line fell from 25 per cent in the late 1950s to 11 percent in 1974. Since then it has fluctuated, reaching 13.2 percent in 2008, a level that is certain to rise further as a result of the financial crisis and recession now taking place. Since the poverty line has remained unchanged, this means that the real incomes accruing to the poorest ten percent of Americans have fallen over the last thirty years.

These outcomes are reflected in measures of the numbers of Americans who lack access to the basics of life: food, shelter, and adequate medical care.

In 2008, according to U.S. Department of Agriculture statistics quoted by the Food Research Action Center, 49.1 million Americans live in households classified as “food insecure”, meaning that they lacked access to enough food to fully meet basic needs at all times due to lack of financial resources. Slightly more than 17 million people (17.3 million) lived in households that were considered to have “very low food security”, which means that one or more people in the household were hungry over the course of the year because of the inability to afford enough food. This number had doubled since 2000 and has almost certainly increased further as a result of the recession.

The number of people without health insurance rose steadily over the period of market liberalism, both in absolute terms and as a proportion of the population, reaching a peak of 46 million, or 15 percent of the population. Among the insured, an increasing proportion was reliant on government programs. The traditional model of employment-based private health insurance, which was developed as part of the New Deal, and covered most of the population during the Keynesian era, was eroded to the point of collapse.

Homelessness is almost entirely a phenomenon of the era of market liberalism. During the decade of full employment, homelessness was confined to a tiny population of transients, mostly older males with mental health and substance abuse problems. By contrast, in 2007, 1.6 million people spent time in homeless shelters, and about 40 percent of the homeless population were families with children.

The experience of the United States in the era of market liberalism was as thorough a refutation of the trickle-down hypothesis as can reasonably be imagined. The well off have become better off, and the rich have become super-rich. Despite impressive technological progress, those in the middle of the income distributions struggled to stay in place, and those at the bottom became worse-off in crucial respects.

(My emphasis).

Bernie Sanders in his book described just how severe the crisis in private American medical care was. It almost collapsed completely in certain states because a very large number of patients are simply unable to afford medical treatment.

And the same situation prevails here in Britain, with increasing poverty here in Britain. Millions of households now live below the poverty line, a quarter of million people need food banks to keep body and soul together, including working people with families. As Mike pointed out in a piece last week, parents are now starving themselves in order to fee their children.

The NHS is also in crisis, though for different but related reasons to those in the US. It’s in crisis because of massive funding cuts by the Tories over the last decade, and the determination of both Tory and New Labour administrations to privatise it by stealth. The introduction of private enterprise into the NHS actually raises costs, not diminishes them. It’s for the simple reason that private firms have to make a profit to pass on to their shareholders. Plus private firms also have bureaucracies of their own, which in some instances can take up 44 per cent of the firm’s income.

And added to this there is a massive increase in homelessness. But don’t worry! Yesterday, the I newspaper published a piece from the Economist telling millennials to cheer up, because in the future they’ll be able to afford their own home. Which sounds very much like simple propaganda for the current economic orthodoxy, rather than a realistic, credible prediction.

Free market capitalism has failed, despite what the press and media is trying to tell us. The Conservatives responsible for its adoption should be thrown out of government, and the Blairites who introduced it into Labour should be forced out of the positions of power they seek to monopolise. If not expelled altogether as Thatcherite entryists.

We need a genuine, socialist Labour government to clean this mess up. A government which must be led by Jeremy Corbyn.

My Cartoon of Margaret Thatcher as Zombie

June 21, 2017

Here’s another of the drawings I made a few years ago, in order to vent some of my spleen in utter revulsion and contempt for the Tories and their media lapdogs. This time it’s of the Leaderene herself, Maggie Thatcher.

I drew her as a decaying, reanimated cadaver because she’s still a powerful presence in British politics, despite the fact that she was forced out of office by her own party over a quarter of a century ago, and died five years ago in 2012. She’s still revered by the Tories as some kind of infallible oracle, whose word cannot be doubted. Any mockery of her or criticism produces howls of outrage from the party and her devoted followers in the press, such as the Daily Mail.

And this despite the fact that all of her policies have manifestly failed. Trickledown economics don’t work. The poor haven’t got richer – they’ve got poorer. Public services haven’t benefited from private investment – they’ve been starved, and used as cash cows, so that shares have been kept artificially high while the services they’ve provided have deteriorated. There are over 7 million people living in ‘food insecure’ poverty – too poor to know if their next meal will be their last. Hundreds of thousands are using food banks. And tens of thousands have died of starvation and misery thanks to being thrown of their benefits due to the DWP and its sanctions regime.

But her policies still carry on, zealously defended by the keepers and tenders of her cult. One book written by an American economist, which attacked the free market policies of the Reagan era, was called Zombie Economics. It’s a fitting metaphor. These policies should be dead and laid to rest. But they lurch on, like zombies, causing more misery and fear.

Just like the undead spectre of Maggie Thatcher, whose own noxious shadow still haunts British politics, propped up by the Tories and newspapers like the Scum, the Depress, the Times and Torygraph.

Article on the Guardian’s Bias against Jeremy Corbyn

March 22, 2017

Michelle, one of the many great commenters on this blog, sent me the link to this article by Novara Media’s Alex Nunns, ‘How the Guardian Changed Tack on Corbyn, Despite Its Readers’. This describes the way the Guardian initially supported Corbyn, but only when it thought that he was an outside candidate, who was unlikely to win the Labour leadership election. When Corbyn did indeed win, the Guardian’s furious reaction was to publish a series of articles attacking the Labour leader for being too left-wing. The Groaniad’s companion paper, the Observer, also reacted with the same outrage. And despite the Groan’s claim to be an impartial observer in the Labour leadership contest, it ran articles strongly backing the contenders Andy Burnham, Liz Kendall and Yvette Cooper.

The piece also discusses some of the individual hacks at the Groan attacking and sniping at Corbyn. These are Polly Toynbee, Michael White, Andrew Rawnsley and Jonathan Jones. It points out that Rawnsley had a personal interest in making sure the Blairites stayed in power: he had written several books on them, and they had given him privileged access and information. By challenging them, Corbyn was threatening to cut of his access to people at the centre of power. One of the other columnists, Patrick Wintour, may have had an even more personal reason for attacking Corbyn. Many on the Left believe that ‘Wintour’ is the nom de plume of Peter Mandelson. As for Jones, his article was almost bug-eyed with hysteria. He described how he joined the Communist party when he was a student, but abandoned it when he saw the reality of life in the Soviet Union for himself, noting that the Soviet regime killed 6m under Stalin. Corbyn, he decided, represented this kind of totalitarian government. He then started trying to defend the free market by saying that ‘markets are human’. Well, so are many things. But they are also subject to manipulation, and do not necessarily bring wealth to the majority of the population. Thatcherite trickle-down economics don’t work in practice. As for Corbyn himself, this is the standard Red scare the Right has been running against Socialism and the Left since the days of the Zionviev Letter. They ran it again under Thatcher against Tony Benn, Ken Livingstone and about 30 other Left Labour MPs in the 1980s. I’ve seen absolutely no evidence that Corbyn is a Marxist, or that he wanted absolute nationalisation. But it just shows how far the Labour right has been infected with the Neoliberal virus.

Jones is also guilty of a bit of holocaust minimalisation in his article as well. The Soviet Union under Stalin didn’t kill 6m Soviet citizens. It murdered about 30 million, at least 8m in Ukraine alone during the manufactured famine in the collectivisation of agriculture.

The article notes that Guardian is convinced Labour needs to keep to the centre-ground, but doesn’t understand how this has changed and will change in the future. It also acknowledges that there are many left-wing columnists on the Groan. However, their presence ironically supports the dominant bias against Corbyn, as it allows the newspaper to present their opinions as views, which have been heard and then discarded. It makes the point that the newspaper has absolutely no understanding why people support Corbyn, including 78 per cent of its own readers, nor the way the media itself shapes public opinion. Nunns states that the best comment on this came from Frankie Boyle, who observed

“It’s worth remembering that in the press, public opinion is often used interchangeably with media opinion, as if the public was somehow much the same as a group of radically right wing billionaire sociopaths.”

http://novaramedia.com/2017/01/08/how-the-guardian-changed-tack-on-corbyn-despite-its-readers/

Reichwing Watch on Hillary Clinton as the Republican Democrat

November 15, 2016

The world was shocked last week by the election of Donald Trump over Hillary Clinton as the next president of the United States. The news showed footage of Clinton and her supporters weeping at the result. Yet as this documentary from Reichwing Watch shows, Clinton herself was no liberal. They describe her as a Republican Democrat. The description is accurate. As this documentary shows and concludes, she is like her Republican opponents a corporatist militarist, backing powerful companies, the military and the armaments industry against ordinary Americans, the environment, and the smaller nations of Latin America and Iraq, which have had the misfortune to feel the boot of American imperialism. And far from a supporter of women and ethnic minorities, the documentary also shows how she cynically sponsored the punitive legislation that has seen the mass incarceration and denial of federal welfare support to Blacks, defend truly horrific rapists and cover up Bill’s affairs and sexual assaults. All while claiming to be a feminist. The documentary also shows how Hillary was also extremely cynical about gay marriage, opposing it until the very last minute when it was politically expedient.

The documentary is divided into several chapters, dealing respectively with imperialism, Black rights, the gun lobby, the war on women, LGBT rights and corruption. It begins with a quote from Christopher Hitchens urging people not to vote for Hillary, as it is a mistake to support candidates, who are seeking election for therapeutic reasons. He then cites her husband, Bill, as an example.

Chapter 1: Building an Empire

This chapter begins with Killary’s support for the Iraq invasion, despite admissions from other members of the US Congress that the full scale industrial equipment needed to produce weapons of mass destruction was not found, and opposition to her and the invasion from Congressmen Kucinich, Bernie Sanders, Gravett, and the liberal news host, Jon Stewart. It also shows clips of Obama and Christopher Hitchens stating that she had the support of the Republicans for her stance on the Iraq invasion, including Henry Kissinger. Kissinger is rightly described by one of the speakers in this documentary as ‘the greatest unindicted war criminal in the world today’. It discusses how the US supported coup in Ecuador recalls the Kissinger sponsored coup in Chile that overthrew Salvador Allende in favour of the Fascist dictator, General Pinochet. It also mentions Killary’s sponsorship of the military coup in Honduras and the assassination of the indigenous rights leader, Berta Carceres. After the coup, Killary ensured that the regime received American aid, including military, in return for which American corporations also received lucrative contracts, especially in the construction of the dams. This section of the documentary also shows how Killary is absolutely ruthless and single-minded when it comes to pursuing her own projects, even at the possible expense of her husband’s interests. When Bill Clinton was finally considering intervening in Bosnia in the 1990s, Killary refused to support him until the very last minute as she was also afraid that this would affect her own healthcare reforms. She was also a firm supporter of No Fly Zones in Syria, despite the view of many others that these would lead directly to war with Russia.

Chapter II: Black Lives Matter

The title of this section of the documentary is highly ironic, considering that for much of her career, Shrillary hasn’t been remotely interested in Black rights, and indeed began her political involvement actively opposing them. She herself freely admits that when she was in college, she was a Goldwater Girl, supporting the segregationist Republican candidate Barry Goldwater. When Bill Clinton was governor of Arkansas, he and Hillary continued to celebrate Confederate Flag Day along with the rest of the reactionaries. There’s also a clip of her describing the threat of urban ‘super predators’ connected to the drug gangs. This was a term that at the time was used almost exclusively to describe Black men. There’s a clip of Michelle Alexander, the author of The New Jim Crow, about contemporary legislation designed to marginalise and impoverish Black America, denouncing the extremely punitive legislation Killary and Bill introduced as part of the war on drugs. These deny federal welfare aid to those convicted of drug offences for going to college, access to public housing and even food stamps. This was part of the Clinton’s strategy to win back swing voters, who had voted for Reagan and the Republicans. Clinton herself continued her strategy of appealing to White voters at the expense of Blacks. In 2008 she credited White voters for supporting her against Barack Obama. She also at one point discussed the assassination of Bobby Kennedy when answering a question about how long she planned to continue her campaign against Obama. She was viciously attacked for this by Stewart, who was outraged that she should mention this at a time when Obama was receiving death threats because of he was a Black man aiming at the presidency. Hillary was also herself extremely cynical in mentioning Obama’s Muslim background and upbringing. Without ever quite saying that he was a Muslim, and therefore shouldn’t be president, she nevertheless reminded people that he had been, thus reinforcing their prejudices.

Chapter III: The Gun Lobby

This begins with Hillary denouncing the armaments industry. However, once in power, she approved $122 million in sales for the gun firms, many of which produced the weapons used by Adam Lanza to shoot his mother and the other children at Sandy Hook school. She also managed to raise American armament sales abroad by 80 per cent over her predecessor, Condoleeza Rice, approving $165 billion of armaments sales in four years. These companies then invested part of their profits in the NRA, which sent lobbyists to Washington, several of whom, including representatives of Goldman Sachs, then went and attended a fundraising dinner for the Clintons.

Chapter IV: The War on Women

This concludes with a clip of Madeleine Albright urging women to vote for Clinton as ‘there is a special place in Hell for women, who do not help other women’. Yet Clinton’s own feminism and support for women is extremely patchy. This part of the documentary begins with her making a speech about how women’s rights are human rights, and vice versa. Which is clearly true. However, it then goes on to play a recording of her talking in 1975 about how she successfully defended a monstrous rapist, who had attacked a 12 year old girl. The girl was left in a coma for several months, needed considerable therapy to help her back on her feet afterwards. She has been on drugs, never married or had children. Her life has been ruined because of this monstrous assault, by a man Clinton knew was guilty, but successfully defended. Due to plea bargaining, he only served a derisory two months in prison.

This part of the documentary also shows how Hillary covered up for Bill’s affairs, and his sexual assault of Juanita Broderick. Broderick, then married, was a nurse at a nursing home, who had done some campaigning for the Clintons. They visited the home, during which Clinton sexually assaulted her in one of the bedrooms. Afterwards Killary approached her, caught her by the hand, and said that they appreciated how much she meant to her husband. Broderick clearly, and not unreasonably, considers this to be a veiled threat, and states that Killary frightened her. The section concludes with a piece about her support for another Democrat, Cuomo, and how this candidate was really another Republican in the guise of a Democrat, who believed in trickle-down Reaganite economics.

Chapter V: LGBT Rights

This begins with a clip from an interview with a gay serviceman, stating how it was very difficult initially in the navy when his sexuality was first known about. This section of the documentary shows how she actively opposed gay marriage until she thought there was votes in supporting it. She is seen supporting her husband’s ‘don’t ask, don’t tell’ policy towards gays in the military as a progressive position, despite the fact that Bill himself said it was only a compromise. It then shows her making speeches declaring that she believed marriage should only be between a man and a woman, and that New York State should not recognise gay marriage.

Chapter VI: Corruption

This part begins by discussing how the Clinton’s took money from Tyson’s, one of the major poultry producers in Arkansas, and one of the agri-businesses credited with polluting 3,700 miles of the states’ waterways. Clinton passed laws setting up a task force to looking into the problem, while ensuring that about a third of the seats on this quango went to Tyson’s. Tyson’s were an important contributor to the Clintons’ campaign funds, in return for which Bill passed laws favouring the firm, and allowing them to grow into the state’s biggest poultry firm.

And the corruption didn’t stop there. It goes on to show how Killary did absolutely nothing to challenge Walmart’s ban on trade unions when she was on their board, and the company still lags behind others in promoting women to important positions. She was also hypocritical in her ‘Buy American’ campaign to persuade Americans to buy domestically produced goods. While she was at Walmart, the company continued to sale imported goods, some of which were even misleadingly labelled as ‘made in America’. This included clothing made in factories in Bangladesh which employed 12 year old girls.

Elsewhere, Killary also campaigned against a bankruptcy bill promoted by the credit card companies in their favour, in a reversal of her previous policy. The also made $675,000 from three speeches to Goldman Sachs, speeches which she refused to release.

She has also been duplicitous in her support of the NAFTA and TPP free trade agreements. She accused Obama during his election campaign of supporting NAFTA, while secretly reassuring the Canadians that she really backed it herself. There is also a clip of Elizabeth Warren, another Democrat politician, attacking the TPP. Warren states that this free trade deal isn’t about developing commerce, but in giving more power to multinational companies at the expense of national governments and hard-working ordinary Americans. America already had free trade deals with very many of the countries included in the treaty. And about half of the TPP’s 30 chapters are devoted to giving more power to the companies.

This section of the documentary also includes a clip of Mika Brzezinski, the daughter of Carter’s foreign policy advisor, Zbigniew Brzezinski, talking about how Killary has no personal convictions of her own, and will say anything to get herself elected. This is followed by the veteran radical, Noam Chomsky, stating that Clinton’s Democrat party is really that of moderate Republicans. President Truman, who warned about the threat of the military-industrial complex, is by their standards now far to the Left. It also has a clip from an interview with one of the multibillionaire Koch brothers describing how they liked Bill Clinton over many Republicans. This one is, admittedly, rather more hesitant when it comes to whether he’d support Killary. There’s then footage from a speech by Bill Clinton promoting small government and how there isn’t a programme for every problem. This is followed by footage of Hillary herself stating that she isn’t dogmatically Republican or Democrat. The documentary ends with the description of her as the worst of the two defects of the American political system. She is both a militarist, and a promoter of corporate power.

Donald Trump is a monster, and his election has brought fear to many millions of ordinary Americans, particularly those from ethnic minorities. The Beeb yesterday reported that 300 racially motivated incidents had been recorded since he was elected last week. Non-white children have been bullied at school, racist slogans sprayed on Black and ethnic minority people’s property and vehicles, and the Nazis from Alt-Right have crawled out from their pits to spew hatred against the Jews. Trump’s even appointed Steven Bannon, a racist and anti-Semite executive from the right-wing news organisation, Breitbart, his ‘chief strategist’. America and the world are facing the prospect of a Nazi in the White House.

But Hillary herself is no angel. She’s a corporate, militarist monster, who supports the very big businesses that are bringing poverty to working people in America by lowering wages, denying union rights, polluting America’s great natural environment, and shipping jobs overseas.

And abroad, her pursuit of American imperial power, as expressed in the American military complex’s own jargon of ‘full spectrum dominance’ – in other words, absolute military power over the rest of us – has threatened to plunge the world once again into a Cold War and the prospect of nuclear annihilation. And her embrace of Henry Kissinger should be a mark of shame to any decent human being. This is the man, whose firm support of dictators in Latin America and Asia, and whose conduct of the Vietnam War, brought death and torture to tens, if not hundreds of millions of innocents.

And Killary herself has blood on her hands through her support of the Iraq invasion, and the coups in Ecuador and Honduras.

Quite frankly, considering the millions she’s threatened with torture, assassination, disappearance and the Fascist jackboot, I really honestly don’t have any sympathy with her weeping over her election defeat. She’s lucky. She didn’t get to be president, but no-one will be rounding her or her husband up to be raped or tortured by the secret police, before being murdered in a concentration camp. She doesn’t have to worry about Chelsea being murdered by a death squad. She gets to live, and enjoy her very privileged life as a major politico and businesswoman. The people she and the rest of the administrations she served and supported, who’ve had their lands invaded and governments overthrown, haven’t been so lucky.

Social Darwinism and Alan Duncan’s Defence of Offshore Tax Havens

April 19, 2016

In the controversy over Dodgy Dave’s tax avoidance and the rich’s use of offshore tax havens to avoid paying their share of the nation’s finances, the Tory MP Alan Duncan stood up in parliament to defend his master. He argued that it was wrong to close them down, as this would penalise ‘achievers’ and stop them entering parliament. It wasn’t quite a Social Darwinist spiel, but it was almost there. It had most of the assumptions.

It took for granted that the rich had acquired their money through their own efforts, and that, as naturally gifted people, who had risen economically to the top of society, they also had a natural right to lead. None of this automatically follows. Firstly, probably the majority of the rich aren’t achievers in the sense that they haven’t earned their riches. It was already accumulated for them by rich ancestors. This is certainly the case for the aristocracy, and also for the big business dynasties. And they’re supported by important social and financial networks that ordinary mortals don’t have access to. The early Utopian Socialist Saint-Simon recommended the abolition of inherited wealth, so that the individuals in each generation would start out on a level playing field, and have to make their own money. I wonder just how many of Duncan’s ‘achievers’ would rise to their positions of eminence if that was the case, and they had to start out in council houses and in suburban housing estates with everyone else. Possibly very few.

Secondly, the tactics the rich have used to hang on to their money and retain their privilege are blocking opportunities for everyone else. Under New Labour, which was enthusiastically Thatcherite, social mobility had almost ceased. Now I think it’s stopped altogether. This isn’t an accident. Policies like the introduction and raising of tuition fees to exorbitant levels, and paying low wages so that employees cannot acquire the capital to start their own businesses naturally have the effect ensuring that those at the bottom of society cannot afford to take the opportunities that the rich take for granted. Duncan’s ‘high achievers’ in actual fact are the dead hand of the wealth past stifling achievement and innovation in the present.

And then there’s the whole assumption that because they’re good at business, somehow this entitles them to political leadership. This is obviously false, because capitalism, at least in its neo-liberal variety, is geared to enriching the few at the expense of the many. Hence the trickle-down economics, which has seen the tax burden shifted on to the poor to subsidize the wealthy, demands for wage restraint and labour fluidity, so that workers can be hired and fired easily. The result has been a massive growth in poverty, with about 4.7 million people in Britain now wondering where they’re going to get their next meal from. All to benefit Duncan’s ‘achievers’.

Duncan had to apologise for his speech. Who knows, he may have been sincere when he did so. But it showed the underlying snobbery and class bias underneath Conservatism. Marxists used to consider the ‘creators of wealth’ to be the workers, as in the slogan, ‘all wealth to the creators of wealth’. The loyal followers of Milton Friedman got hold of the phrase, and decided that the ‘creators of wealth’ were entrepreneurs, and, in particular, the financial sector. The result has been over three decades of such snobbish rhetoric, of which Alan Duncan’s latest speech was just the latest example. It’s high time this was brought to an end, and the neo-liberal policies scrapped so that real achievement can be made possible, and working people can enjoy their share as ‘creators of wealth.’

Secular Talk: Economic Policy Group Shows ‘Welfare Queens’ Have Little Factual Basis

February 7, 2016

This is another excellent political snippet from Secular Talk. In this video, Kyle Kulinski discusses the findings of the Economic Policy Institute, as reported in the International Business Times, that ‘welfare queens’ don’t really exist. ‘Welfare queens’ was the term given by Reagan to lazy, unemployed women, who didn’t want to work and just scrounged off welfare. The Institute’s study shows that most of the people on welfare are the working poor, people in work whose wages don’t cover their basic needs. The report states that

* 2/3 of all people on needs-based public assistance are either working, or have a family member who’s working.

* About half of all recipients of public assistance are working full time.

The report states outright that indolence and laziness aren’t pushing up the welfare bills. Low pay is. And the reports goes on to say that massive bonuses and pay is awarded to corporate executives, it’s appropriate to ask whether corporations are passing their societal responsibilities to tax payers.

* Nearly half of all workers in the forestry, fishing and hunting sectors receive help of some kind.

* This is also true of a 1/3 of those in retail, recreation, entertainment, accommodation and food sector.

Kulinski makes the point that the solution is to the raise the minimum wage. He states that many Republicans actually do want the minimum wage to be raised. He attacks the Republicans, who want to close down welfare programmes, arguing that this would make America Somalia, and force people to starve. He also makes it very clear that he has no time for hypocritical Republicans, who say they love Jesus, but don’t want to put Christ’s concern for the poor and excluded into effect. If America were to raise the minimum wage to a living wage, $45 billion in taxes would be saved. Kulinski points out that this is because workers, when they can’t make enough to live on, turn to the state safety net, which is provided by the taxpayer. Thus, if you pay people a living wage, the Republicans could cut the welfare bill, including Medicaid. All you have to do is make Walmart pay their workers more. He argues that Walmart would be able to afford the extra $2 an hour paid to people, and that the cost passed on to the public would at most be 8c more. This would not stop people going to Walmart.

Kulinski concludes that the system now works by making a miniscule percentage extremely rich, who then give crumbs to everyone else. They have to go on welfare to make ends meet, but the corporations have bought congress, so it looks in the other direction. Kulinski states in very forthright terms that this must go.

The show also has some of the cartoons showing the hypocritical attitude towards poor women. When they’re pregnant, the Republicans are desperate not to let them abort the child. When they have the child, the Republicans are hurling abuse and stating they should never have got pregnant in the first place. And there’s a cartoon of a fat cat businessman on a mountain of money accusing a starving worker of being greedy.

This study really should surprise no one. It’s been that way for about twenty years. At the end of the 1990s the Financial Times, then a Liberal newspaper, stated that the vast majority of the poor across the Developed World were working. This is the case for America, Australasia and Europe. They reviewed a programme on the radio about poverty in New Zealand, which showed the problems working people in the land of the Kiwi and the All Blacks had keeping body and soul together. Same as hard-workin’ folks in the Appalachians. And there has been report after report, study after study, showing it in Britain.

And it’s fairly clear that, despite the vilification of people on welfare as benefit frauds and scroungers, aIDS, Cameron and Osbo are very aware of this. No, ‘aIDS’ isn’t a spelling mistake. I’ve decided to call the ‘Gentleman Ranker’ aIDS, because like that foul disease he’s determined to kill people, and spread his vile poison throughout society. But back to the main point. IDS and the others have passed regulations stipulating that if you’re receiving benefit for low pay, you get a phone from your ‘Job Coach’ encouraging you to get a better paid job. In order to cut the welfare bill, of course. It’s a tacit acknowledgement that they know the majority of the poor in this country are working, and aren’t being paid a proper, living wage. But they really don’t want to admit that, as the free market is supposed to make sure that everyone gets what they deserve, in a rising tide that lifts all boats due to trickle down economics. This was rubbish when Reagan and Thatcher spouted it. Hunter S. Thompson had a go at it in Generation of Swine. But they’re still going on as if it were all true, thirty years later.

There’s only one sure way to tackle in work poverty, and that is to demand the minimum wage be raised. And to vote out the people, who are blocking this. Like AIDS Ian Duncan Smith.

Meme on the Poor as the Drivers of the Economy

January 9, 2016

This is another meme I found over on the over 18 site, 1000 Natural Shocks. It succinctly makes the economic point Mike over at Vox Political, the Angry Yorkshireman and many other bloggers have been making for a very long time: that it’s the poor that drive the economy by spending their money through sheer necessity. All the money the rich save in tax cuts is effectively thrown away, because they don’t spend it. The trickle down economics beloved of Thatcher and Reagan is a lie.

Meme Poor Economy