Tag Archive for elites

Linkage: Oligarchy USA, BitCoin Revolution?, Climate Change, Piketty Illustrated

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Just some recommended reading; my favorite recent posts from around the Web looking forward, or giving context to understanding the future of our economic lives.

Is the US an Oligarchy?

A new paper (PDF) by economists from Princeton and Northwestern strongly suggests that the US federal government is effectively controlled by its wealthiest class. This isn’t startling news to you, or probably anyone who isn’t a political scientist or an economist. But it is news that, at long last, a couple of serious economists have taken the time to lay out just how serious elites’ manipulation of the polity, and thereby society, truly is.

Better than slogging through their paper, check out Joe Firestone’s post that’s a little less reserved than the original report, out-and-out calling the United States an oligarchy. The argument is a little bit semantics (never hurt anyone) and a lotta bit damning.

An Overview of Libertarian Socialist Options

anarcho-communist flagWayne Price has put together a survey article touching on most of the prominent contemporary ideas for alternatives to capitalism and authoritarian socialism. Unfortunately, the piece doesn’t live up to the promise of its title (“Worker Self-Directed Enterprises: A Revolutionary Program”), as there’s no strategy or program in sight.

Can Alternative Currency Be Revolutionary?

bitcoin-revolutionJeremy Roos has done a tremendous service in diligently reporting on, and providing insightful, radical observations of, the MoneyLab: Coining Alternatives conference that took place last month in Amsterdam, covering digital currencies and electronic economic platforms. Roos’s review is extensive, but it concisely analyzes numerous topics such as the limitations of BitCoin and the downside of KickStarter. Each commentary is more interesting than the last. Do yourself the favor.

We Just Can’t Win on Climate Change

The hot fledgling news and analysis site Vox has been churning out some decent content. So far, it’s a very refreshing change to the perverse brevity of the clickbait and listicle sites permeating the progressive Web. A piece called “Two Degrees” by Brad Plumer had me shaking my head in disgust — not at the writing, but at what it suggests about humanity. It’s a great primer on climate change, its prospects and implications. If you don’t really know the bad news, start here. It’s time to wake up.

Modeling Piketty’s Immiseration Thesis

piketty-capital-21st-centuryFinally, I’d be remiss at this time if I didn’t make some mention of the most talked about economics book of our time: Thomas Piketty’s Capital in the Twenty-First Century. Unfortunately, I haven’t even opened it yet. Fortunately, Matthew Martin has laid out a really neat hypothetical that illustrates Piketty’s main thesis. I really enjoyed reading the post; it should whet your appetite for the main course.

 

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Billionaires Smell Like Fear

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Bloomberg News, often the mouthpiece of the elite, is revealing the soreness of .01% at the nascent excoriation movement dishonoring their special place in society as “job creators”. How dare we not be grateful for their large(ne)ss?

Read this. It’s stunning how bizarrely out of touch these folks are even when making deliberate statements to the press.

One example:

[John] Paulson, the New York hedge-fund manager who became a billionaire by betting against the U.S. housing market, has also said the rich benefit society.

This is actually pretty good reporting, but not as explicit as it should be. Paulson made money off of mass suffering and loss. It’s not a judgment, it’s a statement of fact.

Then there’s this:

Attacking the banking system is a mistake because it contributes to “a healthier economy,” [Blackstone Group CEO Stephen Schwarzman] said in the interview.

I honestly don’t know if these guys believe this stuff. A banking system could contribute toward a healthier economy, but the banking system we have? Not so much.

“If I hear a politician use the term ‘paying your fair share’ one more time, I’m going to vomit,” said billionaire founder of Paychex, Tom Golisano.

Fairness makes them sick.

Then a thinly veiled threat:

“It’s simply a fact that pretty much all the private- sector jobs in America are created by the decisions of ‘the 1 percent’ to hire and invest,” [Delphi Financial Group founder Robert] Rosenkranz, 69, said in an e-mail. “Since their confidence in the future more than any other factor will drive those decisions, it makes little sense to undermine their confidence by vilifying them.”

Read: “If you attack us, you’ll get hurt worst and first.” You seriously couldn’t make this stuff up if you were making comic-book villains out of these elitists.

Really, the whole article is chock-full of this stuff. I’m not even picking favorites here.

Okay, just one more:

[Home Depot co-founder Bernard Marcus, who also co-founded the 1 Percenter public relations group Job Creators Alliance] said he isn’t worried that speaking out might make him a target of protesters. “Who gives a crap about some imbecile?” Marcus said. “Are you kidding me?”

Right. He doesn’t give a crap; he just started a PR firm to respond to it. Other than that one move, he shows no sign of being bothered by the nationwide protests.

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‘Stay Angry at the Plutonomists’

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Writing for the New Economic Foundation blog, Josh Ryan-Collins encourages us to “stay angry” at the tiny group of powerful Americans CitiGroup says enjoy the special status of “plutonomy” — you know, the people who matter.

Citigroup believed that we had moved in to a new kind of macro-economy, where growth was primarily driven by the rich and enjoyed by the rich.  Everyone else was fairly irrelevant, as was the global imbalance in trade between the US and everyone else and the strength of the dollar.  The fact that inequality was massively widening was not seen as a big issue – the important thing was to keep the rich and their stocks, getting richer.

Ryan-Collins is referring to the content of two leaked reports that should have been more widely embarrassing for Citigroup. It probably helps that Citi’s brands/subsidiaries advertise widely in American news media, or we might have seen more from the troublingly candid document.

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