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David Graeber on a Fair Future Economy - YouTube
"David Graeber is an anthropologist, a leading figure in the Occupy movement, and one of our most original and influential public thinkers.

He comes to the RSA to address our current age of ‘total bureaucratization’, in which public and private power has gradually fused into a single entity, rife with rules and regulations, whose ultimate purpose is the extraction of wealth in the form of profits.

David will consider what it would take, in terms of intellectual clarity, political will and imaginative power – to conceive and build a flourishing and fair future economy, which would maximise the scope for individual and collective creativity, and would be sustainable and just."
democracy  liberalism  directdemocracy  borders  us  finance  globalization  bureaucracy  2015  ows  occupywallstreet  governance  government  economics  politics  policy  unschooling  unlearning  schooliness  technology  paperwork  future  utopianism  capitalism  constitution  rules  regulation  wealth  power  communism  authority  authoritarianism  creativity  neoliberalism  austerity  justice  socialjustice  society  ideology  inequality  revolution  global  international  history  law  legal  debt  freedom  money  monetarypolicy  worldbank  imf  markets  banks  banking  certification  credentials  lobbying  collusion  corruption  privatization  credentialization  deschooling  canon  firstamendment 
january 2019 by robertogreco
Democracy at Work
"Democracy at Work is a non-profit 501(c)3 that advocates for worker cooperatives and democratic workplaces as a key path to a stronger, democratic economic system. Based on the book Democracy at Work: A Cure for Capitalism by Richard D. Wolff, we envision a future where workers at every level of their offices, stores, and factories have equal voices in the direction of their enterprise and its impact within their community and society at large."
economics  justice  richardwolff  capitalism  democracy  woorkercooperatives  labor  horizontality  politics  socialism  work  society  banks  banking  creditunions  finance 
july 2018 by robertogreco
Why capitalism can’t survive without socialism - Vox
"Sean Illing

This raises a thorny question: The kinds of skills this technological economy rewards are not skills that a majority of the population possesses. Perhaps a significant number of people simply can’t thrive in this space, no matter how much training or education we provide.

Eric Weinstein

I think that's an interesting question, and it depends a lot on your view of education. Buckminster Fuller (a prominent American author and architect who died in 1983) said something to the effect of, "We're all born geniuses, but something in the process of living de-geniuses us." I think with several years more hindsight, we can see that the thing that de-geniuses us is actually our education.

The problem is that we have an educational system that's based on taking our natural penchant for exploration and fashioning it into a willingness to take on mind-numbing routine. This is because our educational system was designed to produce employable products suitable for jobs, but it is jobs that are precisely going to give way to an economy increasingly based on one-off opportunities.

Sean Illing

That’s a problem with a definable but immensely complicated solution.

Eric Weinstein

Part of the question is, how do we disable an educational system that is uniformizing people across the socioeconomic spectrum in order to remind ourselves that the hotel maid who makes up our bed may in fact be an amateur painter? The accountant who does our taxes may well have a screenplay that he works on after the midnight hour? I think what is less clear to many of our bureaucrats in Washington is just how much talent and creativity exists through all walks of life.

What we don't know yet is how to pay people for those behaviors, because many of those screenplays and books and inventions will not be able to command a sufficiently high market price, but this is where the issue of some kind of hybridization of hypercapitalism and hypersocialism must enter the discussion.

“We will see the beginning stirrings of revolution as the cost for this continuing insensitivity”
Sean Illing

Let's talk about that. What does a hybrid of capitalism and socialism look like?

Eric Weinstein

I don't think we know what it looks like. I believe capitalism will need to be much more unfettered. Certain fields will need to undergo a process of radical deregulation in order to give the minority of minds that are capable of our greatest feats of creation the leeway to experiment and to play, as they deliver us the wonders on which our future economy will be based.

By the same token, we have to understand that our population is not a collection of workers to be input to the machine of capitalism, but rather a nation of souls whose dignity, well-being, and health must be considered on independent, humanitarian terms. Now, that does not mean we can afford to indulge in national welfare of a kind that would rob our most vulnerable of a dignity that has previously been supplied by the workplace.

People will have to be engaged in socially positive activities, but not all of those socially positive activities may be able to command a sufficient share of the market to consume at an appropriate level, and so I think we're going to have to augment the hypercapitalism which will provide the growth of the hypersocialism based on both dignity and need.

Sean Illing

I agree with most of that, but I’m not sure we’re prepared to adapt to these new circumstances quickly enough to matter. What you’re describing is a near-revolutionary shift in politics and culture, and that’s not something we can do on command.

Eric Weinstein

I believe that once our top creative class is unshackled from those impediments which are socially negative, they will be able to choose whether capitalism proceeds by evolution or revolution, and I am hopeful that the enlightened self-interest of the billionaire class will cause them to take the enlightened path toward finding a rethinking of work that honors the vast majority of fellow citizens and humans on which their country depends.

Sean Illing

Are you confident that the billionaire class is so enlightened? Because I'm not. All of these changes were perceptible years ago, and yet the billionaire class failed to take any of this seriously enough. The impulse to innovate and profit subsumes all other concerns as far as I can tell."



"Sean Illing

I suppose that’s my point. If the people with the power to change things are sufficiently cocooned that they fail to realize the emergency while there’s still time to act, where does that leave us?

Eric Weinstein

Well, the claim there is that there will be no warning shots across the bow. I guarantee you that when the Occupy Wall Street demonstrators left the confines of Zuccotti Park and came to visit the Upper East Side homes of Manhattan, it had an immediate focusing on the mind of those who could deploy a great deal of capital. Thankfully, those protesters were smart enough to realize that a peaceful demonstration is the best way to advertise the potential for instability to those who have yet to do the computation.

“We have a system-wide problem with embedded growth hypotheses that is turning us all into scoundrels and liars”
Sean Illing

But if you're one of those Occupy Wall Street protesters who fired off that peaceful warning shot across the bow six years ago, and you reflect on what’s happened since, do have any reason to think the message was received? Do you not look around and say, “Nothing much has changed”? The casino economy on Wall Street is still humming along. What lesson is to be drawn in that case?

Eric Weinstein

Well, that's putting too much blame on the bankers. I mean, the problem is that the Occupy Wall Street protesters and the bankers share a common delusion. Both of them believe the bankers are more powerful in the story than they actually are. The real problem, which our society has yet to face up to, is that sometime around 1970, we ended several periods of legitimate exponential growth in science, technology, and economics. Since that time, we have struggled with the fact that almost all of our institutions that thrived during the post-World War II period of growth have embedded growth hypotheses into their very foundation.

Sean Illing

What does that mean, exactly?

Eric Weinstein

That means that all of those institutions, whether they're law firms or universities or the military, have to reckon with steady state [meaning an economy with mild fluctuations in growth and productivity] by admitting that growth cannot be sustained, by running a Ponzi scheme, or by attempting to cannibalize others to achieve a kind of fake growth to keep those particular institutions running. This is the big story that nobody reports. We have a system-wide problem with embedded growth hypotheses that is turning us all into scoundrels and liars."



"Sean Illing

So our entire economy is essentially a house of cards, built on outdated assumptions and pushed along with gimmicks like quantitative easing. It seems we’ve gotten quite good at avoiding facing up to the contradictions of our civilization.

Eric Weinstein

Well, this is the problem. I sometimes call this the Wile E. Coyote effect because as long as Wile E. Coyote doesn't look down, he's suspended in air, even if he has just run off a cliff. But the great danger is understanding that everything is flipped. During the 2008 crisis, many commentators said the markets have suddenly gone crazy, and it was exactly the reverse. The so-called great moderation that was pushed by Alan Greenspan, Timothy Geithner, and others was in fact a kind of madness, and the 2008 crisis represented a rare break in the insanity, where the market suddenly woke up to see what was actually going on. So the acute danger is not madness but sanity.

The problem is that prolonged madness simply compounds the disaster to come when sanity finally sets in."
2017  capitalism  socialism  business  dystopia  history  seanilling  ericweinstein  economics  politics  policy  productivity  technology  inequality  revolution  dignity  creativeclass  creativity  repetition  ows  occupywallstreet  banks  banking  finance  ponzischemes  alangreenspan  timothygeitner  civilization  systems  systemsthinking  growth  society  science  automation 
august 2017 by robertogreco
American Capitalism’s Great Crisis | TIME
"America’s economic problems go far beyond rich bankers, too-big-to-fail financial institutions, hedge-fund billionaires, offshore tax avoidance or any particular outrage of the moment. In fact, each of these is symptomatic of a more nefarious condition that threatens, in equal measure, the very well-off and the very poor, the red and the blue. The U.S. system of market capitalism itself is broken.

[…]

America’s economic illness has a name: financialization. It’s an academic term for the trend by which Wall Street and its methods have come to reign supreme in America, permeating not just the financial industry but also much of American business. It includes everything from the growth in size and scope of finance and financial activity in the economy; to the rise of debt-fueled speculation over productive lending; to the ascendancy of shareholder value as the sole model for corporate governance; to the proliferation of risky, selfish thinking in both the private and public sectors; to the increasing political power of financiers and the CEOs they enrich; to the way in which a “markets know best” ideology remains the status quo. Financialization is a big, unfriendly word with broad, disconcerting implications.

[…]

The changes were driven by the fact that in the 1970s, the growth that America had enjoyed following World War II began to slow. Rather than make tough decisions about how to bolster it (which would inevitably mean choosing among various interest groups), politicians decided to pass that responsibility to the financial markets. Little by little, the Depression-era regulation that had served America so well was rolled back, and finance grew to become the dominant force that it is today. The shifts were bipartisan, and to be fair they often seemed like good ideas at the time; but they also came with unintended consequences.

[…]

This sickness, not so much the product of venal interests as of a complex and long-term web of changes in government and private industry, now manifests itself in myriad ways: a housing market that is bifurcated and dependent on government life support, a retirement system that has left millions insecure in their old age, a tax code that favors debt over equity. Debt is the lifeblood of finance; with the rise of the securities-and-trading portion of the industry came a rise in debt of all kinds, public and private. That’s bad news, since a wide range of academic research shows that rising debt and credit levels stoke financial instability. And yet, as finance has captured a greater and greater piece of the national pie, it has, perversely, all but ensured that debt is indispensable to maintaining any growth at all in an advanced economy like the U.S., where 70% of output is consumer spending. Debt-fueled finance has become a saccharine substitute for the real thing, an addiction that just gets worse. (The amount of credit offered to American consumers has doubled in real dollars since the 1980s, as have the fees they pay to their banks.)

[…]

Remooring finance in the real economy isn’t as simple as splitting up the biggest banks (although that would be a good start). It’s about dismantling the hold of financial-oriented thinking in every corner of corporate America. It’s about reforming business education, which is still permeated with academics who resist challenges to the gospel of efficient markets in the same way that medieval clergy dismissed scientific evidence that might challenge the existence of God. It’s about changing a tax system that treats one-year investment gains the same as longer-term ones, and induces financial institutions to push overconsumption and speculation rather than healthy lending to small businesses and job creators. It’s about rethinking retirement, crafting smarter housing policy and restraining a money culture filled with lobbyists who violate America’s essential economic principles.

It’s also about starting a bigger conversation about all this, with a broader group of stakeholders. The structure of American capital markets and whether or not they are serving business is a topic that has traditionally been the sole domain of “experts”—the financiers and policymakers who often have a self-interested perspective to push, and who do so in complicated language that keeps outsiders out of the debate. When it comes to finance, as with so many issues in a democratic society, complexity breeds exclusion. "

[via: http://finalbossform.com/post/146159698129/americas-economic-problems-go-far-beyond-rich ]
ranafarhoo  culture  economics  us  capitalism  banking  taxes  accounting  policy  politics  finance  banks  hedgefunds  inequality  financialization  wallstreet  debt  speculation  interestgroups  corruption  government  instability  regulation  democracy  markets 
june 2016 by robertogreco
Why the Economic Fates of America’s Cities Diverged - The Atlantic
"What accounts for these anomalous and unpredicted trends? The first explanation many people cite is the decline of the Rust Belt, and certainly that played a role."



"Another conventional explanation is that the decline of Heartland cities reflects the growing importance of high-end services and rarified consumption."



"Another explanation for the increase in regional inequality is that it reflects the growing demand for “innovation.” A prominent example of this line of thinking comes from the Berkeley economist Enrico Moretti, whose 2012 book, The New Geography of Jobs, explains the increase in regional inequality as the result of two new supposed mega-trends: markets offering far higher rewards to “innovation,” and innovative people increasingly needing and preferring each other’s company."



"What, then, is the missing piece? A major factor that has not received sufficient attention is the role of public policy. Throughout most of the country’s history, American government at all levels has pursued policies designed to preserve local control of businesses and to check the tendency of a few dominant cities to monopolize power over the rest of the country. These efforts moved to the federal level beginning in the late 19th century and reached a climax of enforcement in the 1960s and ’70s. Yet starting shortly thereafter, each of these policy levers were flipped, one after the other, in the opposite direction, usually in the guise of “deregulation.” Understanding this history, largely forgotten today, is essential to turning the problem of inequality around.

Starting with the country’s founding, government policy worked to ensure that specific towns, cities, and regions would not gain an unwarranted competitive advantage. The very structure of the U.S. Senate reflects a compromise among the Founders meant to balance the power of densely and sparsely populated states. Similarly, the Founders, understanding that private enterprise would not by itself provide broadly distributed postal service (because of the high cost of delivering mail to smaller towns and far-flung cities), wrote into the Constitution that a government monopoly would take on the challenge of providing the necessary cross-subsidization.

Throughout most of the 19th century and much of the 20th, generations of Americans similarly struggled with how to keep railroads from engaging in price discrimination against specific areas or otherwise favoring one town or region over another. Many states set up their own bureaucracies to regulate railroad fares—“to the end,” as the head of the Texas Railroad Commission put it, “that our producers, manufacturers, and merchants may be placed on an equal footing with their rivals in other states.” In 1887, the federal government took over the task of regulating railroad rates with the creation of the Interstate Commerce Commission. Railroads came to be regulated much as telegraph, telephone, and power companies would be—as natural monopolies that were allowed to remain in private hands and earn a profit, but only if they did not engage in pricing or service patterns that would add significantly to the competitive advantage of some regions over others.

Passage of the Sherman Antitrust Act in 1890 was another watershed moment in the use of public policy to limit regional inequality. The antitrust movement that sprung up during the Populist and Progressive era was very much about checking regional concentrations of wealth and power. Across the Midwest, hard-pressed farmers formed the “Granger” movement and demanded protection from eastern monopolists controlling railroads, wholesale-grain distribution, and the country’s manufacturing base. The South in this era was also, in the words of the historian C. Vann Woodward, in a “revolt against the East” and its attempts to impose a “colonial economy.”"



"By the 1960s, antitrust enforcement grew to proportions never seen before, while at the same time the broad middle class grew and prospered, overall levels of inequality fell dramatically, and midsize metro areas across the South, the Midwest, and the West Coast achieved a standard of living that converged with that of America’s historically richest cites in the East. Of course, antitrust was not the only cause of the increase in regional equality, but it played a much larger role than most people realize today.

To get a flavor of how thoroughly the federal government managed competition throughout the economy in the 1960s, consider the case of Brown Shoe Co., Inc. v. United States, in which the Supreme Court blocked a merger that would have given a single distributor a mere 2 percent share of the national shoe market.

Writing for the majority, Supreme Court Chief Justice Earl Warren explained that the Court was following a clear and long-established desire by Congress to keep many forms of business small and local: “We cannot fail to recognize Congress’ desire to promote competition through the protection of viable, small, locally owned business. Congress appreciated that occasional higher costs and prices might result from the maintenance of fragmented industries and markets. It resolved these competing considerations in favor of decentralization. We must give effect to that decision.”

In 1964, the historian and public intellectual Richard Hofstadter would observe that an “antitrust movement” no longer existed, but only because regulators were managing competition with such effectiveness that monopoly no longer appeared to be a realistic threat. “Today, anybody who knows anything about the conduct of American business,” Hofstadter observed, “knows that the managers of the large corporations do their business with one eye constantly cast over their shoulders at the antitrust division.”

In 1966, the Supreme Court blocked a merger of two supermarket chains in Los Angeles that, had they been allowed to combine, would have controlled just 7.5 percent of the local market. (Today, by contrast there are nearly 40 metro areas in the U.S where Walmart controls half or more of all grocery sales.) Writing for the majority, Justice Harry Blackmun noted the long opposition of Congress and the Court to business combinations that restrained competition “by driving out of business the small dealers and worthy men.”

During this era, other policy levers, large and small, were also pulled in the same direction—such as bank regulation, for example. Since the Great Recession, America has relearned the history of how New Deal legislation such as the Glass-Steagall Act served to contain the risks of financial contagion. Less well remembered is how New Deal-era and subsequent banking regulation long served to contain the growth of banks that were “too big to fail” by pushing power in the banking system out to the hinterland. Into the early 1990s, federal laws severely limited banks headquartered in one state from setting up branches in any other state. State and federal law fostered a dense web of small-scale community banks and locally operated thrifts and credit unions.

Meanwhile, bank mergers, along with mergers of all kinds, faced tough regulatory barriers that included close scrutiny of their effects on the social fabric and political economy of local communities. Lawmakers realized that levels of civic engagement and community trust tended to decline in towns that came under the control of outside ownership, and they resolved not to let that happen in their time.

In other realms, too, federal policy during the New Deal and for several decades afterward pushed strongly to spread regional equality. For example, New Deal programs such as the Tennessee Valley Authority, the Bonneville Power Administration, and the Rural Electrification Administration dramatically improved the infrastructure of the South and West. During and after World War II, federal spending on the military and the space program also tilted heavily in the Sunbelt’s favor.

The government’s role in regulating prices and levels of service in transportation was also a huge factor in promoting regional equality. In 1952, the Interstate Commerce Commission ordered a 10-percent reduction in railroad freight rates for southern shippers, a political decision that played a substantial role in enabling the South’s economic ascent after the war. The ICC and state governments also ordered railroads to run money-losing long-distance and commuter passenger trains to ensure that far-flung towns and villages remained connected to the national economy.

Into the 1970s, the ICC also closely regulated trucking routes and prices so they did not tilt in favor of any one region. Similarly, the Civil Aeronautics Board made sure that passengers flying to and from small and midsize cities paid roughly the same price per mile as those flying to and from the largest cities. It also required airlines to offer service to less populous areas even when such routes were unprofitable.

Meanwhile, massive public investments in the interstate-highway system and other arterial roads added enormously to regional equality. First, it vastly increased the connectivity of rural areas to major population centers. Second, it facilitated the growth of reasonably priced suburban housing around high-wage metro areas such as New York and Los Angeles, thus making it much more possible than it is now for working-class people to move to or remain in those areas.

Beginning in the late 1970s, however, nearly all the policy levers that had been used to push for greater regional income equality suddenly reversed direction. The first major changes came during Jimmy Carter’s administration. Fearful of inflation, and under the spell of policy entrepreneurs such as Alfred Kahn, Carter signed the Airline Deregulation Act in 1978. This abolished the Civil Aeronautics Board, which had worked to offer rough regional parity in airfares and levels of service since 1938… [more]
us  cities  policy  economics  history  inequality  via:robinsonmeyer  2016  philliplongman  regulation  deregulation  capitalism  trusts  antitrustlaw  mergers  competition  markets  banks  finance  ronaldreagan  corporatization  intellectualproperty  patents  law  legal  equality  politics  government  rentseeking  innovation  acquisitions  antitrustenforcement  income  detroit  nyc  siliconvalley  technology  banking  peterganong  danielshoag  1950s  1960s  1970s  1980s  1990s  greatdepression  horacegreely  chicago  denver  cleveland  seattle  atlanta  houston  saltlakecity  stlouis  enricomoretti  shermanantitrustact  1890  cvannwoodward  woodrowwilson  1912  claytonantitrustact  louisbrandeis  federalreserve  minneapolis  kansascity  robinson-patmanact  1920s  1930s  miller-tydingsact  fdr  celler-kefauveract  emanuelceller  huberhumphrey  earlwarren  richardhofstadter  harryblackmun  newdeal  interstatecommercecommission  jimmycarter  alfredkahn  airlinederegulationact  1978  memphis  cincinnati  losangeles  airlines  transportation  rail  railroads  1980  texas  florida  1976  amazon  walmart  r 
march 2016 by robertogreco
—Ethel Baraona Pohl— dpr-barcelona — Have several mixed feelings by the inherent...
"Have several mixed feelings by the inherent contradictions from this crowdfunding project. At first sight it seems like a great, creative idea, but with a simple double thought, you realise how easy is to ‘find a creative solution’ for our problems, without thinking in deep if the problem doesn’t rely on our need of keep doing the same again and again… I mean collecting the same old money that will go to the same old banks, and not to the citizens in Greece; because, where does the final goal of this campaign will go if it succeed? To Tsirpas pocket? Don’t think so.

As a symbolic project is super strong indeed, but perhaps we need to use 'the power of the crowd’ to ask responsibilities to the EU, to remind them about the real fact that we are already 'crowdfunding’ our social health by paying our taxes —taxes that are being used to rescue banks and enrich the rich—. The problem at the end is not the money, is the failed system of considering 'democratic’ those decisions taken by just a few, and even worse, when those few are economic institution (FMI, CEB, etc.)

Perhaps we need the 'power of the crowd not to collect the same old money that has taken us to this stupid discourse of austerity, but to think how to use the collective power to provoke structural changes in the political field. Difficult though, but which change hasn’t been difficult along history?"
ethelbaraonapohl  2015  greece  bailouts  crowdfunding  imf  debt  money  power  change  systemsthinking  creativity  zoominginandzoomingout  finance  banks  banking  capitalism  policy  politics  geopolitics 
july 2015 by robertogreco
How to turn a liberal hipster into a capitalist tyrant in one evening | Comment is free | The Guardian
"And because the theatre captures data on every choice by every team, for every performance, I know we were not alone. The aggregated flowchart reveals that every audience, on every night, veers towards money and away from ethics.

Svendsen says: “Most people who were given the choice to raise wages – having cut them – did not. There is a route in the decision-tree that will only get played if people pursue a particularly ethical response, but very few people end up there. What we’ve realised is that it is not just the profit motive but also prudence, the need to survive at all costs, that pushes people in the game to go down more capitalist routes.”

In short, many people have no idea what running a business actually means in the 21st century. Yes, suppliers – from East Anglia to Shanghai – will try to break your ethical codes; but most of those giant firms’ commitment to good practice, and environmental sustainability, is real. And yes, the money is all important. But real businesses will take losses, go into debt and pay workers to stay idle in order to maintain the long-term relationships vital in a globalised economy.

Why do so many decent people, when asked to pretend they’re CEOs, become tyrants from central casting? Part of the answer is: capitalism subjects us to economic rationality. It forces us to see ourselves as cashflow generators, profit centres or interest-bearing assets. But that idea is always in conflict with something else: the non-economic priorities of human beings, and the need to sustain the environment. Though World Factory, as a play, is designed to show us the parallels between 19th-century Manchester and 21st-century China, it subtly illustrates what has changed."



"The whole purpose of this system of regulation – from above and below – is to prevent individual capitalists making short-term decisions that destroy the human and natural resources it needs to function. Capitalism is not just the selfish decisions of millions of people. It is those decisions sifted first through the all-important filter of regulation. It is, as late 20th-century social theorists understood, a mode of regulation, not just of production.

Yet it plays on us a cruel ideological trick. It looks like a spontaneous organism, to which government and regulation (and the desire of Chinese migrants to visit their families once a year) are mere irritants. In reality it needs the state to create and re-create it every day.

Banks create money because the state awards them the right to. Why does the state ram-raid the homes of small-time drug dealers, yet call in the CEOs of the banks whose employees commit multimillion-pound frauds for a stern ticking off over a tray of Waitrose sandwiches? Answer: because a company has limited liability status, created by parliament in 1855 after a political struggle.

Our fascination with market forces blinds us to the fact that capitalism – as a state of being – is a set of conditions created and maintained by states. Today it is beset by strategic problems: debt- ridden, with sub-par growth and low productivity, it cannot unleash the true potential of the info-tech revolution because it cannot imagine what to do with the millions who would lose their jobs.

The computer that runs the data system in Svendsen’s play could easily run a robotic clothes factory. That’s the paradox. But to make a third industrial revolution happen needs something no individual factory boss can execute: the re-regulation of capitalism into something better. Maybe the next theatre game about work and exploitation should model the decisions of governments, lobbyists and judges, not the hapless managers."
capitalism  economics  ethics  money  values  2015  rationality  behavior  priorities  policy  sustainability  survival  worldfactory  paulmason  latecapitalism  psychology  zoesvendsen  growth  productivity  banks  banking  government  governance  regulation  longterm  shortterm 
june 2015 by robertogreco
Robert Reich (The Political Roots of Widening Inequality)
"A deeper understanding of what has happened to American incomes over the last 25 years requires an examination of changes in the organization of the market. These changes stem from a dramatic increase in the political power of large corporations and Wall Street to change the rules of the market in ways that have enhanced their profitability, while reducing the share of economic gains going to the majority of Americans.

This transformation has amounted to a redistribution upward, but not as “redistribution” is normally defined. The government did not tax the middle class and poor and transfer a portion of their incomes to the rich. The government undertook the upward redistribution by altering the rules of the game.

Intellectual property rights—patents, trademarks, and copyrights—have been enlarged and extended, for example. This has created windfalls for pharmaceuticals, high tech, biotechnology, and many entertainment companies, which now preserve their monopolies longer than ever. It has also meant high prices for average consumers, including the highest pharmaceutical costs of any advanced nation.

At the same time, antitrust laws have been relaxed for corporations with significant market power. This has meant large profits for Monsanto, which sets the prices for most of the nation’s seed corn; for a handful of companies with significant market power over network portals and platforms (Amazon, Facebook, and Google); for cable companies facing little or no broadband competition (Comcast, Time Warner, AT&T, Verizon); and for the largest Wall Street banks, among others. And as with intellectual property rights, this market power has simultaneously raised prices and reduced services available to average Americans. (Americans have the most expensive and slowest broadband of any industrialized nation, for example.)

Financial laws and regulations instituted in the wake of the Great Crash of 1929 and the consequential Great Depression have been abandoned—restrictions on interstate banking, on the intermingling of investment and commercial banking, and on banks becoming publicly held corporations, for example—thereby allowing the largest Wall Street banks to acquire unprecedented influence over the economy. The growth of the financial sector, in turn, spawned junk-bond financing, unfriendly takeovers, private equity and “activist” investing, and the notion that corporations exist solely to maximize shareholder value.

Bankruptcy laws have been loosened for large corporations—notably airlines and automobile manufacturers—allowing them to abrogate labor contracts, threaten closures unless they receive wage concessions, and leave workers and communities stranded. Notably, bankruptcy has not been extended to homeowners who are burdened by mortgage debt and owe more on their homes than the homes are worth, or to graduates laden with student debt. Meanwhile, the largest banks and auto manufacturers were bailed out in the downturn of 2008–2009. The result has been to shift the risks of economic failure onto the backs of average working people and taxpayers.

Contract laws have been altered to require mandatory arbitration before private judges selected by big corporations. Securities laws have been relaxed to allow insider trading of confidential information. CEOs have used stock buybacks to boost share prices when they cash in their own stock options. Tax laws have created loopholes for the partners of hedge funds and private-equity funds, special favors for the oil and gas industry, lower marginal income-tax rates on the highest incomes, and reduced estate taxes on great wealth.

All these instances represent distributions upward—toward big corporations and financial firms, and their executives and shareholders—and away from average working people."



"The underlying problem, then, is not that most Americans are “worth” less in the market than they had been, or that they have been living beyond their means. Nor is it that they lack enough education to be sufficiently productive. The more basic problem is that the market itself has become tilted ever more in the direction of moneyed interests that have exerted disproportionate influence over it, while average workers have steadily lost bargaining power—both economic and political—to receive as large a portion of the economy’s gains as they commanded in the first three decades after World War II. As a result, their means have not kept up with what the economy could otherwise provide them.

To attribute this to the impersonal workings of the “free market” is to disregard the power of large corporations and the financial sector, which have received a steadily larger share of economic gains as a result of that power. As their gains have continued to accumulate, so has their power to accumulate even more.

Under these circumstances, education is no panacea. Reversing the scourge of widening inequality requires reversing the upward distributions within the rules of the market, and giving workers the bargaining leverage they need to get a larger share of the gains from growth. Yet neither will be possible as long as large corporations and Wall Street have the power to prevent such a restructuring. And as they, and the executives and managers who run them, continue to collect the lion’s share of the income and wealth generated by the economy, their influence over the politicians, administrators, and judges who determine the rules of the game may be expected to grow.

The answer to this conundrum is not found in economics. It is found in politics. The changes in the organization of the economy have been reinforcing and cumulative: As more of the nation’s income flows to large corporations and Wall Street and to those whose earnings and wealth derive directly from them, the greater is their political influence over the rules of the market, which in turn enlarges their share of total income.

The more dependent politicians become on their financial favors, the greater is the willingness of such politicians and their appointees to reorganize the market to the benefit of these moneyed interests. The weaker unions and other traditional sources of countervailing power become economically, the less able they are to exert political influence over the rules of the market, which causes the playing field to tilt even further against average workers and the poor.

Ultimately, the trend toward widening inequality in America, as elsewhere, can be reversed only if the vast majority, whose incomes have stagnated and whose wealth has failed to increase, join together to demand fundamental change. The most important political competition over the next decades will not be between the right and left, or between Republicans and Democrats. It will be between a majority of Americans who have been losing ground, and an economic elite that refuses to recognize or respond to its growing distress."
robertreich  2015  economics  inequality  histoy  corporatism  politics  policy  wealth  productivity  globalization  markets  capitalism  labor  work  insecutiry  greatrecession  recession  unemployment  underemployment  finance  banks  banking  wallstreet  education  government  ideology 
may 2015 by robertogreco
The US payday loans crisis: borrow $100 to make ends meet, owe 36 times that sum | US news | The Guardian
"In Missouri, there are 958 more payday lenders than there are McDonald’s restaurants as payday loans have become part of the economic landscape"



"Poor Americans no longer live check to check: they live loan to loan, with no end in sight."
loans  paydayloans  us  2015  poverty  usury  paydaylending  sarahkendzior  injustice  finance  banks  banking  money  inequality  evil 
may 2015 by robertogreco
The Sweet Briar Dilemma: Will Predatory Lending Take Down More Colleges? | Next New Deal
"What we can say, though, is that a million dollars here and a million dollars there adds up to real money that was desperately needed as Sweet Briar fought to stay afloat.  

We know that Wall Street collects higher fees on risky and complicated deals involving variable rate debt and hedging instruments, like the ones found in Sweet Briar's last few decades of financials, than from fixed rate debt deals. We know that they add on things like credit enhancements, further driving up the costs. We know that those higher fees mean that there is a clear financial incentive to sell schools, municipalities, and pension funds on these risky deals. And we know that it works in Wall Street's favor that someone like me can spend days digging into this stuff and still not be totally sure what the exact costs of these deals are.  

What we don't know is how all these things were allowed to happen at this particular school in this particular timeframe.  

Sweet Briar appears slated to close because it is a small organization without the resources to counter the huge information imbalance that has helped precipitate the financialization crisis. It is closing because it signed some terrible deals to get what must have felt like "needed" money at the time. You can see the reasons: a $14 million bond (with swaps) in 2001 for campus improvements. A $10 million bond in 2006 to pay off other bonds that had revealed their ugly side and were costing the school too much to be allowed to fully mature. But, as has so often been the case in everything from municipal finance to personal home loans, there was a problem in the small print. Like many other colleges, what appeared to be vital and even beneficial deals turned out to be nothing of the sort. Unlike many others, Sweet Briar was already close enough to the financial brink that these ongoing debts made the difference between staying open and closing its doors.

There are, of course, other very real pressures on Sweet Briar. Lower enrollment numbers do really hurt a school, and there are real questions about how to keep small, rural liberal arts institutions competitive in a higher education economy. None of these issues, however, compare to the fees, fines, penalties, and other losses that are all over Sweet Briar’s books.

Is Sweet Briar the canary in the coalmine? Banks are certainly making obscene profits on the backs of the swap deals in the UC system, at the University of Michigan, and at American University — and those are the places that we’ve found in our first month of looking. While those schools are solvent enough that these swaps are not pushing them to the brink of closing, they are exacerbating budget shortfalls and passing debt on to students through increased costs. These deals are also clearly making money for many school trustees whose day jobs happen to be with the giant banks. Here I find myself agreeing with Mark Cuban, at least in part: these trends are a part of a vicious cycle of borrowing that is wholly unsustainable, and will eventually lead to a crisis.

This is why the Roosevelt Institute | Campus Network is working to track the ways in which financial institutions are extracting wealth from our colleges and universities, and make a clear case for demanding our money back. I hope that the storied institution of Sweet Briar can find a way to keep it's doors open in 2016, but even if it fails, that failure should wake us up to predatory practices at colleges and universities around the country."
sweetbriarcollege  education  highered  highereducation  wallstreet  banking  finance  2015  alansmith  predatorylending  banks 
march 2015 by robertogreco
danah boyd | apophenia » What is Fairness?
"Increasingly, tech folks are participating in the instantiation of fairness in our society. Not only do they produce the algorithms that score people and unevenly distribute scarce resources, but the fetishization of “personalization” and the increasingly common practice of “curation” are, in effect, arbiters of fairness.

The most important thing that we all need to recognize is that how fairness is instantiated significantly affects the very architecture of our society. I regularly come back to a quote by Alistair Croll:
Our social safety net is woven on uncertainty. We have welfare, insurance, and other institutions precisely because we can’t tell what’s going to happen — so we amortize that risk across shared resources. The better we are at predicting the future, the less we’ll be willing to share our fates with others. And the more those predictions look like facts, the more justice looks like thoughtcrime.

The market-driven logic of fairness is fundamentally about individuals at the expense of the social fabric. Not surprisingly, the tech industry — very neoliberal in cultural ideology — embraces market-driven fairness as the most desirable form of fairness because it is the model that is most about individual empowerment. But, of course, this form of empowerment is at the expense of others. And, significantly, at the expense of those who have been historically marginalized and ostracized.

We are collectively architecting the technological infrastructure of this world. Are we OK with what we’re doing and how it will affect the society around us?"
algorithms  culture  economics  us  finance  police  policing  lawenforcement  technology  equality  equity  2014  danahboyd  alistaircroll  justice  socialjustice  crime  civilrights  socialsafetynet  welfare  markets  banks  banking  capitalism  socialism  communism  scarcity  abundance  uncertainty  risk  predictions  profiling  race  business  redlining  privilege 
november 2014 by robertogreco
The Post Office Banks on the Poor - NYTimes.com
"PEOPLE like to complain about banks popping up like Starbucks on every corner these days. But in poor neighborhoods, the phenomenon is quite the opposite: Over the past couple of decades, the banks have pulled out.

Approximately 88 million people in the United States, or 28 percent of the population, have no bank account at all, or do have a bank account, but primarily rely on check-cashing storefronts, payday lenders, title lenders, or even pawnshops to meet their financial needs. And these lenders charge much more for their services than traditional banks. The average annual income for an “unbanked” family is $25,500, and about 10 percent of that income, or $2,412, goes to fees and interest for gaining access to credit or other financial services.

But a possible solution has appeared, in the unlikely guise of the United States Postal Service. The unwieldy institution, which has essentially been self-funded since 1971, and has maxed out its $15 billion line of credit from the federal government, is in financial straits itself. But what it does have is infrastructure, with a post office in most ZIP codes, and a relationship with residents in every kind of neighborhood, from richest to poorest.

Last week, the office of the U.S.P.S. inspector general released a white paper noting the “huge market” represented by the population that is underserved by traditional banks, and proposing that the post office get into the business of providing financial services to “those whose needs are not being met.” (I wrote a paper years ago suggesting just such an idea.) Postal banking has a powerful advocate in Senator Elizabeth Warren, Democrat of Massachusetts, who has publicly supported the plan.

The U.S.P.S. — which already handles money orders for customers — envisions offering reloadable prepaid debit cards, mobile transactions, domestic and international money transfers, a Bitcoin exchange, and most significantly, small loans. It could offer credit at lower rates than fringe lenders do by taking advantage of economies of scale.

The post office has branches in many low-income neighborhoods that have long been deserted by commercial banks. And people at every level of society have a certain familiarity and comfort in the post office that they do not have in more formal banking institutions — a problem that, as a 2011 study by the Federal Deposit Insurance Corporation demonstrated, can keep the poor from using even the banks that are willing to offer them services.

Many will oppose the idea of a governmental agency providing financial services. Camden R. Fine, chief executive of the Independent Community Bankers of America, has already called the post office proposal “the worst idea since the Ford Edsel.” But the federal government already provides interest-free “financial services” to the largest banks (not to mention the recent bailout funds). And this is done under an implicit social contract: The state supports and insures the banking system, and in return, banks are to provide the general population with access to credit, loans and savings. But in reality, too many are left out."
via:caseygollan  banks  banking  poverty  access  us  usps  postoffices  money  publicbanking  government  finance 
february 2014 by robertogreco
Has capitalism failed the world? - Head to Head - Al Jazeera English
"Former financial regulator Lord Adair Turner discusses the role of banks, the politics behind austerity, and capitalism."
banks  banking  finance  economics  capitalism  2013  politics  austerity  risk 
july 2013 by robertogreco
Wall Street ♥ charter schools | Muckety - See the news
"Call them cynical, but the widespread involvement of financial firms in the charter school movement raises suspicion among many public school advocates.

The map below illustrates just a few entanglements of big league investors in national school-choice organizations."



"One of the perks of investment in charter schools came with passage in 2000 of the New Markets Tax Credit, a federal tax break for investors in community development projects.

Big banks have seen the allure. The map below shows banks and other organizations that have put money into community development organizations funding charter schools since 2009."
charterschools  vouchers  schools  education  finance  money  banks  banking  funding 
may 2013 by robertogreco
a brief history of participation
"These activities were not always congenial to the program of government reform towards democratization. Many of them used participatory methods instead to net poor peoples into networks of debt and reliance on hierarchical authorities.

The reasons for the failures of participatory technology are actually quite specific.

Participation was appropriated during the 1970s as a means of cheap development without commitment of resources from above. The theme of participatory ownership of the city, pioneered in discussions about urban planning in the West, remained strong in the context of the developing world, and even grew in a context of spiraling urbanization. In India, the Philippines, and much of Africa and Latin America, postwar economies pushed peasants off of the land into cities, where the poor availability of housing required the poor to squat on land and build their own homes out of cheap building materials. At first, the governments of these towns collaborated with the World Bank to take out loans to provide expensive, high-rise public housing units. But increasingly, the World Bank drew upon the advice of western advocates of squatter settlements, who saw in western squats the potential benefits of self-governance without interference from the state. In the hands of the World Bank, this theory of self-directed, self-built, self-governed housing projects became a justification for defunding public housing. From 1972 forward, World Bank reports commended squatters for their ingenuity and resourcefulness and recommended giving squatters titles to their properties, which would allow them to raise credit and participate in the economy as consumers and borrowers.

Participatory mechanisms installed by the Indian government to deal with water tanks after nationalization depend on principles of accountability at the local level that were invented under colonial rule. They install the duty of the locality to take care of people without necessarily providing the means with which to do so.

We need developers who can learn from the history of futility, and historians who have the courage to constructively encourage a more informed kind of development. "
peertopeer  web2.0  joguldi  2013  conviviality  participation  participatory  government  centralization  centralizedgovernment  self-rule  history  1960s  democracy  democratization  reform  networks  mutualaid  peterkropotkin  politics  activism  banks  banking  patrickgeddes  urban  urbanism  urbanplanning  planning  self-governance  worldbank  dudleyseers  gandhi  robertchambers  neelamukherjee  india  thailand  philippines  gis  geography  latinamerica  1970s  squatters  economics  development  africa  cities  resources  mapmaking  cartography  maps  mapping  googlemaps  openstreetmap  osm  ushahidi  crowdsourcing  infrastructure 
march 2013 by robertogreco
Revealed: how the FBI coordinated the crackdown on Occupy | Naomi Wolf | Comment is free | guardian.co.uk
"It was more sophisticated than we had imagined: new documents show that the violent crackdown on Occupy last fall – so mystifying at the time – was not just coordinated at the level of the FBI, the Department of Homeland Security, and local police. The crackdown, which involved, as you may recall, violent arrests, group disruption, canister missiles to the skulls of protesters, people held in handcuffs so tight they were injured, people held in bondage till they were forced to wet or soil themselves –was coordinated with the big banks themselves."
policestate  wikileaks  politics  dhs  us  2012  fbi  suppression  banking  banks  occupywallstreet  ows  naomiwolf 
december 2012 by robertogreco
122 Minutes With Jamie Dimon
“There are huge benefits to size,” he says instead, a distinct air of tired-of-this-shit creeping into his voice. “We bank Caterpillar in like 40 countries. We can do a $20 billion bridge loan overnight for a company that’s about to do a major acquisition. Size lets us build a $500 million data center that speeds up transactions and invest billions of dollars in products like ATMs and apps that allow your iPhone to deposit checks. We move $2 trillion a day, and you can see it by account, by company. These aren’t, like, little things. And they accrue to the customer. That’s what capitalism is.”

He takes a breath. “The whole world has become crazy. Businesses get attacked every time they do something.” [...]

“Everyone is afraid of retaliation and retribution. We recently had an event with a hundred small bankers here, and 85 percent of them said they can’t challenge the regulation because of the potential retribution. That’s a terrible thing. Okay? This is not the Soviet Union. This is the United States of America. That’s what I remember. Guess what,” he says, almost shouting now. “It’s a free. Fucking. Country.”
capitalism  finance  culture  personality  bankfailure  interview  banks  banking  scale  size  fragility  via:Taryn  jamiedimon  jpmorganchase 
august 2012 by robertogreco
BBC News - Could Iceland be a model for debt-ridden Europe?
"Nearly three years after the Icelandic economy imploded, the country appears to be recovering, and some believe its approach may offer a possible solution to Europe's debt problems."

""In Europe there is a conflict between the democratic will of the people and the interests of the financial markets," he tells me earnestly, leaning forward over his antique desk.

He believes if Europe is not about democracy then the European project means nothing.

Iceland ignored the dire warnings of disaster from the ratings agencies and other institutions, says the Icelandic president, and the country is doing OK.

The implication is clear - other countries should follow the Icelandic example.

But Iceland had a key weapon in its armoury that is not open to the indebted eurozone nations - Iceland had its own currency, the krona. And, when the banks collapsed, the krona did too."
economics  2011  iceland  2008  policy  money  finance  bankruptcy  banking  banks 
july 2011 by robertogreco
YouTube - RSA Animate - Crises of Capitalism
"In this RSA Animate, radical sociologist David Harvey asks if it is time to look beyond capitalism towards a new social order that would allow us to live within a system that really could be responsible, just, and humane?"
davidharvey  capitalism  economics  politics  rsaanimate  homeownership  us  culture  germany  greece  policy  banks  finance  banking  canon  housing  worldbank  imf  neoliberalism  liberalism  alangreenspan  marxism  instability  systemicrisk  capitalaccumulation  crisis  labor  capital  1970s  1980s  unions  offshoring  power  wagerepression  wages  credit  creditcards  debt  personaldebt  2010  limits  greed  profits  industry  london  uk  latinamerica  wealth  india  china  inequality  incomeinequality  wealthinequality  hedgefunds 
june 2010 by robertogreco
The Saturday Profile - Icelander’s Campaign Is a Joke, Until He’s Elected - Biography - NYTimes.com
"A polar bear display for the zoo. Free towels at public swimming pools. A “drug-free Parliament by 2020.” Iceland’s Best Party, founded in December by comedian, Jon Gnarr, to satirize his country’s political system, ran a campaign that was one big joke. Or was it?... With his party having won 6 of City Council’s 15 seats, Mr. Gnarr needed a coalition partner, but ruled out any party whose members had not seen all five seasons of “The Wire.”... Mr. Gnarr, born in Reykjavik...to a policeman & a kitchen worker, was not a model child. At 11, he decided school was useless to his future as a circus clown or pirate & refused to learn any more. At 13, he stopped going to class & joined Reykjavik’s punk scene. At 14, he was sent to a boarding school for troubled teenagers and stayed until he was 16, when he left school for good. Back in Reykjavik, he worked odd jobs, rented rooms, joined activist groups like Greenpeace * considered himself an anarchist (he still does)."
bailout  iceland  elections  2010  government  via:cervus  biography  banks  economics  politics  unschooling  anarchism  deschooling  bestparty  jóngnarr  thewire  dropouts  reykjavík  punk 
june 2010 by robertogreco
'Geezer Bandit' strikes 6th bank - Weird News - Canoe.ca
"The FBI says the so-called “Geezer Bandit“ has struck again in San Diego.

The FBI says a frail, elderly man gave a clerk a note demanding money and pulled a handgun Wednesday at San Diego National Bank. He left with an unspecified amount of cash.

FBI officials say they believe the man, who wore a white hooded sweat shirt and white ball cap, is the same man who has robbed five other banks in La Jolla, Rancho Santa Fe, San Diego and Santee since August.

Law enforcement officials are offering $16,000 in rewards for information that leads to his arrest and conviction."
sandiego  local  strange  banks  crime  weird  news 
february 2010 by robertogreco
Op-Ed Contributors - Show Us the E-Mail - NYTimes.com
"The three of us, as experienced investigators and prosecutors of financial fraud, cannot answer these questions now. But we know where the answers are. They are in the trove of e-mail messages still backed up on A.I.G. servers, as well as in the key internal accounting documents and financial models generated by A.I.G. during the past decade. Before releasing its regulatory clutches, the government should insist that the company immediately make these materials public. By putting the evidence online, the government could establish a new form of “open source” investigation."
finance  law  recession  crime  corruption  bailout  aig  banks  subprime  economics  2009  eliotspitzer 
december 2009 by robertogreco
Obama's Big Sellout : Rolling Stone
"What's taken place in the year since Obama won the presidency has turned out to be one of the most dramatic political about-faces in our history. Elected in the midst of a crushing economic crisis brought on by a decade of orgiastic deregulation and unchecked greed, Obama had a clear mandate to rein in Wall Street and remake the entire structure of the American economy. What he did instead was ship even his most marginally progressive campaign advisers off to various bureaucratic Siberias, while packing the key economic positions in his White House with the very people who caused the crisis in the first place. This new team of bubble-fattened ex-bankers and laissez-faire intellectuals then proceeded to sell us all out, instituting a massive, trickle-up bailout and systematically gutting regulatory reform from the inside."
barackobama  economics  politics  bailout  government  finance  policy  matttaibbi  wallstreet  banking  fraud  democrats  corruption  banks  citigroup  goldmansachs  money 
december 2009 by robertogreco
The Future of the Bank Branch - Bank Technology News
"some banks have pushed unconventional branch design even further-so far that actual transactions aren’t even possible; the sole goal is relationship building. ING Direct is an online bank, but management realized the bank needed some physical presence to reassure the public the bank was more than a billboard. So execs devised the ING café, which look like Starbucks; people can go have coffee, smoothies, use a free-wireless connection, and learn about ING if they choose. But the eight “branches” have no transactional ability whatsoever; people still must sign up and do transactions online. For example, the ING café in Chicago had “Bike to Work Week Specials” in mid-June. “Every bicyclist that rides to the ING DIRECT Café during Bike to Work Week will be treated to a free bike valet, beverage and tune up. While you’re there, ask a Café Associate about other simple ways to save your money.”" [via: http://www.core77.com/blog/object_culture/designing_all_the_way_to_the_bank_14244.asp]
banks  interiors  thirdplaces  lcproject  banking  applestore  ing  wamu  chase  design 
august 2009 by robertogreco

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