Tag Archives: Inequality

A Few Reasons We’re Getting Screwed

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It’s one thing to get screwed. It’s another thing to know why. From recent reading:

Instead of raising wages, hiring more workers or investing in research and new equipment, corporations are increasingly accumulating cash and buying their own stock. This raises the corporation’s stock price, enriching the people in charge (who receive much of their compensation in the form of stock and stock options) and shareholders (who tend to be the wealthiest among us), but does little to improve the lives of most Americans. Some statistics from The Atlantic‘s “Stock Buybacks Are Killing the American Economy”:

Over the past decade, the companies that make up the S&P 500 have spent an astounding 54 percent of profits on stock buybacks. Last year alone, U.S. corporations spent about $700 billion, or roughly 4 percent of GDP, to prop up their share prices by repurchasing their own stock.

Instead of doing something productive.

The Atlantic article is by Nick Hanauer, a very successful capitalist who acknowledges that inequality is a problem that needs to be addressed. A poorly-named article from Salon called “Let’s All Screw the 1 Percent” cites an article Hanauer wrote last year about overtime pay.

We all know that wages have stagnated for many workers or even declined when adjusted for inflation. In order to have the same buying power it had in 1968, the federal minimum wage would have to be raised from $7.25 to almost $11.00 (see this attempt at myth-busting from the Department of Labor). What isn’t as well-understood and what Hanauer pointed out is that millions of workers would and should be receiving overtime pay, even though they aren’t paid by the hour (declaring workers to be “exempt” and giving them a salary is, of course, a great way to force people to work long hours without extra compensation). From the Salon article by Paul Rosenberg:

…there’s a wage level below which everyone qualifies for mandatory time-and-a-half overtime, even if they’re on a salary, and that level has only been raised once since 1975, with the result that only 11 percent of salaried Americans are covered today, compared to over 65 percent of them in 1975. If you make less than $23,660 a year as a salaried worker, you qualify for mandatory overtime—if not, you’re out of luck.  … Just adjusting the wage level for inflation since 1975—an act of restoration, not revolution—would be as significant an income increase for millions of middle-class Americans as a $10.10 or even $15 minimum wage is for low-wage workers.  It would cover an additional 6.1 million salaried workers (by one account) up to $970 per week, about $50,440 annually—the vast majority of those it was originally designed to protect, but who have slowly lost their protections since the 1970s. Hanauer proposes a slightly greater increase, intended to cover roughly all the workforce that was covered in 1975. That would raise the threshold to $69,000 annually, and would cover an added 10.4 million workers.

What was also surprising to me is that the President can raise the $23,660 threshold without the approval of Congress. Last year, in fact, President Obama promised to do just that. This website for Human Resources specialists predicts that the threshold for overtime pay will be increased in 2016, but only to around $45,000 (they also predict that the rules for declaring an employee to be “exempt” will be tightened, making more workers eligible for overtime pay).

In a related article at the Alternet site, a postal worker explains why the people delivering your mail during the week or a package from Amazon on Sunday may not look as official as they used to (jeans and a sweatshirt seem to have replaced those blue uniforms in my neighborhood). Paul Barbot says that he is a City Carrier Assistant:

City Carrier Assistants are a brand new classification of employee within the postal ranks; we are the low-wage, non-career, complement workforce at the USPS. Before [a 2013] reclassification, we were called Transitional Employees and made a respectable $23.52 hourly rate, only several dollars per hour less than what the average career employee made. But with the USPS management’s financial woes … a low-wage workforce was needed to help entice big business into choosing the postal service to partner up with. City Carrier Assistants now perform the same work they did when they were called [“Transitional Employees”], but now they get to do that work for 31 percent less pay ($16.68 per hour)….Newly hired CCAs will make even less —starting at $15 per hour.

Barbot argues that this lower-wage workforce helped the Postal Service and Amazon reach a “Negotiated Service Agreement” regarding special treatment for Amazon packages. 

And finally, The Guardian reports (no surprise) that:

Poor Americans are less likely to vote and more likely to distrust government, study shows… Political engagement, it appears, is a privilege for those who aren’t struggling to make ends meet…

while the right-wing Koch brothers, who aren’t struggling at all (not even with their consciences), plan to spend almost $900 million in 2016 in support of reactionary candidates, almost twice what they spent in 2012.

Is It Bad Enough Yet? Yes, It Is

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“Is It Bad Enough Yet?” That’s a wonderful title for an article by Mark Bittman about where we are today:

The police killing unarmed civilians. Horrifying income inequality. Rotting infrastructure and an unsafe “safety net.” An inability to respond to climate, public health and environmental threats. An occasionally dysfunctional and even cruel government. A sizable segment of the population excluded from work and subject to near-random incarceration.

You get it: This is the United States, which, with the incoming Congress, might actually get worse….

The root of the anger is inequality, about which statistics are mind-boggling: From 2009 to 2012 (that’s the most recent data), some 95 percent of new income has gone to the top 1 percent…

Everything affects everything. It’s all tied together, and the starting place hardly matters: A just and righteous system will have a positive impact on everything we care about, just as an unjust, exploitative system makes everything worse….

When underpaid workers begin their strikes by saying “I can’t breathe,” or by holding their hands over their heads and chanting “Hands up, don’t shoot,” they’re recognizing that their struggle is the same as that of African-Americans demanding dignity, respect and indeed safety on their own streets….

Increasingly, it seems, there’s an appetite and even unity to take on the billionaire class. Let’s recognize that if we are seeing positive change now, it’s in part because elected officials respond to pressure, and let’s remember that that pressure must be maintained no matter who is in office. Even if Bernie Sanders were to become president, the need for pressure would continue.

“True citizenship,” says [Saru Jayaraman of U.C. Berkeley]— echoing Jefferson — “is people continually protesting.” Precisely.

So warmest congratulations to the fast food workers and Walmart employees demanding a living wage and to the thousands who have marched or stood silently in protest because black lives matter. It’s all connected.

And enough is enough. That’s what Senator Elizabeth Warren said this week. Listen to her talk about Citigroup’s stranglehold on the Federal government and why we need to break up the biggest banks. It’s only 10 minutes and it’s worth watching and sharing.

We can’t directly vote against Walmart or Citigroup, but we can boycott them. Don’t shop at Walmart until they institute a living wage and don’t use a Citigroup credit card or checking account until they’re small enough to fail, because, yes, it is bad enough. 

A Neutral Observer Might Detect a Pattern Here

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Ijeoma Oluo, a Seattle writer, has been tweeting “Don’t Do That and They Won’t Kill You” advice since yesterday. New York Magazine helpfully provided an annotated list of the fatal encounters she’s described.

Much too often, the apparently dangerous and criminal behavior at issue seems to have been “Being in Public While Black”.

Do many cops really see black Americans as so much more lawless and threatening than the white Americans they meet up with?

Today I saw a link to the video below. It shows how unreliable direct perception can be. It’s called the McGurk Effect in honor of the scientist who discovered it. From Wikipedia:

The effect was discovered by accident when McGurk and his research assistant … asked a technician to dub a video…. while conducting a study on how infants perceive language at different developmental stages. When the video was played back, both researchers heard a third phoneme [a perceptually distinct unit of spoken language] rather than the one spoken or mouthed in the video.

A couple weeks ago, in Cleveland, two cops responded to a 911 call, which can be heard here. The person who called 911 said that someone in the park (“probably a juvenile”) was scaring people with a gun (“probably fake”). 

It isn’t clear yet what the 911 dispatcher told the two officers to look for, but the black 12-year-old with the authentic-looking pellet gun was shot as soon as they arrived on the scene. From the New York Times:

Tamir Rice was killed by a rookie Cleveland police officer who quit a suburban police force after his supervisors determined two years ago that he suffered a “dangerous loss of composure” during firearms training and was emotionally unprepared to cope with stresses of the job. The officer, Tim Loehmann, 26, shot the child within two seconds after his patrol car pulled up next to the boy.

The Cleveland police said the child, who had what turned out to be a replica gun that shoots small plastic pellets but looks like a semiautomatic pistol, was told to raise his hands, but instead reached to his waistband for the object. Surveillance video of the killing that was released last week showed, however, that the shooting happened so fast it was hard to know whether the officer issued any real warnings or whether the boy could have understood them if he did.

I wonder what the young cop who had been fired by another police department saw when he and his veteran partner drove into that park. I wonder what the more experienced officer saw. It’s possible, even likely, that they didn’t see the same thing. Whatever each of them saw, however, it’s clear that one of them shouldn’t have arrived in that park with a gun in his hand, ready to use it, given what he apparently perceived.

Two Brechtian Commentaries on the Way of the World

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Although they’ve been attributed to him, there is no evidence that the German playwright Bertolt Brecht wrote the following words (in German or English):

The worst illiterate is the political illiterate. He doesn’t hear, doesn’t speak, nor participates in the political events. He doesn’t know [that] the cost of life, the price of the bean, of the fish, of the flour, of the rent, of the shoes and of the medicine, all depends on political decisions. The political illiterate is so stupid that he is proud and swells his chest saying that he hates politics. The imbecile doesn’t know that, from his political ignorance is born the prostitute, the abandoned child, and the worst thieves of all, the bad politician, corrupted and flunky of the national and multinational companies.

On the other hand, he did write the words below (in German). They’re from the Threepenny Opera‘s “Second Threepenny Finale”, also known as “Wovon lebt der Mensch” or “What Keeps Mankind Alive”:

You gentlemen who think you have a mission
to purge us of the seven deadly sins,
should first sort out the basic food position,
then start your preaching! That’s where it begins.
You lot who preach restraint and watch your waist as well,
should learn, for once, the way the world is run:

However much you twist, whatever lies you tell,
food is the first thing, morals follow on.
So first make sure that those who now are starving
get proper helpings when we all start carving.

What keeps mankind alive? The fact that millions
are daily tortured, stifled, punished, silenced, oppressed.
Mankind can keep alive thanks to its brilliance
in keeping its humanity repressed.

It’s not as catchy as “Mack the Knife” or “Alabama Song”, but it’s still pretty good.

Dreaming About Democracy

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In a speech to the House of Commons in 1947, Winston Churchill uttered one of the best-known and most profound witticisms on the subject of democracy, although he was apparently quoting someone else:

Many forms of Gov­ern­ment have been tried, and will be tried in this world of sin and woe. No one pre­tends that democ­racy is per­fect or all-wise. Indeed, it has been said that democ­racy is the worst form of Gov­ern­ment except for all those other forms that have been tried from time to time…

Benjamin Franklin was responsible for the other best-known and profound remark on the subject. One of the delegates to the Constitutional Convention in 1787 recorded the following exchange in his diary:

A lady asked Dr. Franklin, Well Doctor what have we got, a republic or a monarchy? A republic, replied the Doctor, if you can keep it.

Churchill and Franklin summed up the situation quite nicely. Few people these days (at least around here) question whether some kind of democracy is the best form of government. Most of the discussion now regards whether we’re losing our democracy or have already lost it.

In that vein, one of Salon’s writers, Andrew O’Hehir, published an article a few days ago called “This Is Not What Democracy Looks Like”. O’Hehir argues that our democracy is hardly a democracy at all and, furthermore, it’s unlikely to get any better (more democratic) than it already is:

We have to consider the possibility that the current state of American politics, with its bizarre combination of poisoned, polarized and artificially overheated debate along with total paralysis on every substantive issue and widespread apathy and discontent, is what we get after 200-odd years. It’s not a detour in the history of Jeffersonian democracy but something closer to a natural outcome. We also must consider that our version of a democratic system is not, in fact, designed to reflect the will of the people … but to manipulate and channel it in acceptable directions.  

On O’hehir’s view, those who believe our dysfunctional democracy might one day evolve toward a more democratic ideal are as misguided as the defenders of the Soviet Union who thought the state would eventually wither away and be replaced by a truly egalitarian form of communism. Given the influence of money in our political system and the increasingly bizarre politics of the Republican Party, it may in fact be too late for America to become less oligarchic and plutocratic. O’hehir may be right about that.

Still, he doesn’t suggest anywhere in the article that Churchill was wrong and we should prefer aristocracy or anarchy instead. He only argues that democracy is a fantasy, which seems to imply that we should all relax and accept our politics for what it is, a tool of the rich and powerful meant to keep the rest of us in line. Why try to elect better politicians or advocate particular reforms if nothing is going to improve? At this point, our best strategy might be looking for refugee status in Scandinavia.

Assuming that Sweden and Denmark aren’t realistic options for most of us, it seems to me that we might as well do what we can to make America more democratic, even if we can’t do very much. It isn’t out of the question that there will be a reaction in coming years to the right-wing onslaught of the past several decades. It certainly seems possible that we could one day institute real campaign finance reform, for example. We could make it easier for everyone to vote. The Fairness Doctrine that once called for broadcasters to present opposing viewpoints on important public issues could conceivably be resuscitated and even strengthened. We might make the tax code more progressive again. Regulations that interfere with the most rapacious forms of capitalism might be adopted. It isn’t impossible that labor unions will reverse their recent decline.

It seems unnecessarily pessimistic to conclude from the past 30 or 40 years that we might never have another New Deal. Or too assume that corporate capitalism can never be replaced by democratic socialism, even in the United States. Human institutions do evolve. Maybe it will take a crisis of some sort. Or maybe we just need to help. 

Meanwhile, it doesn’t hurt to occasionally remind ourselves why democracy is worth fighting for. To quote the great American philosopher John Dewey:

Democracy is much broader than a special political form, a method of conducting government, of making laws and carrying on governmental administration by means of popular suffrage and elected officers. It is that, of course. But it is something broader and deeper than that. The political and governmental phase of democracy is a means, the best means so far found, for realizing ends that lie in the wide domain of human relationships and the development of human personality. It is … a way of life, social and individual. The key-note of democracy as a way of life may be expressed, it seems to me, as the necessity for the participation of every mature human being in formation of the values that regulate the living of men together, [which] is necessary from the standpoint of both the general social welfare and the full development of human beings as individuals.

Universal suffrage, recurring elections, responsibility of those who are in political power to the voters, and the other factors of democratic government are means that have been found expedient for realizing democracy as the truly human way of living…. Democratic political forms are simply the best means that human wit has devised up to a special time in history. But they rest upon the idea that no man or limited set of men is wise enough or good enough to rule others without their consent; the positive meaning of this statement is that all those who are affected by social institutions must have a share in producing and managing them.  [“Democracy and Educational Adminstration”, 1937]