We're Far Better than the Syrians and Zimbabwans, so Shut up and Wave the Flag!

As the new academic year begins, one has to think about the benefits of education and whether a country is better off with educated citizens. Of course, getting a job is important and a formal education makes is easier to get better paying jobs. Most countries realize that a basic education--to read and write--is necessary so they've instituted mandatory and free public education. 

But, it's getting harder, due to the rising tuition, to get into a higher education, either a 2 or 4 year college. Recently, student debt became larger than mortgage debt! In other words, graduates begin their professional life in a deep hole and now owe more that more established homeowners, who presumably have a job (or had one when they got their mortgage) and perhaps are more financially better off than a young, unemployed graduate.

We may be heading back to the old days when the children of the elite could go to college, and, perhaps, a few other token students from the lower classes. Since the 1970s, real wages have remained stagnant over all. The consumers' buying power increased however since those days, because most of the goods have become cheaper. Food, clothing, appliances, cars, etc, are now cheaper. A sense of prosperity also fueled by personal debt, plus a constant barrage of a mythic narrative about the American dream made many people content if not happy. Yet, reality eventually sinks in.

Rising Inequality

Aristotle argued that extremes aren't good for a good society, or for a society to be good for the majority of the people. Extremes of power of wealth work in the interest who have wealth, and who in turn acquire political power, at the very least to protect (and enhance, 'cause you can never have enough) their interests. The elites try to control (and they go a great job) the narrative--the story about who we are, what the country is, our greatness, the land of opportunity, freedom, etc. It seems that a system that allows some people to rise demands (and gets) that they adopt the narrative. After all, once you climb a few rungs of the ladder it may be natural to belief that anyone can make it. Those who don't have personal faults. Look at individuals like Gates, Jobs, Jordan who made it. It must be true what they say about the American dream.

Yes, we have been more mobile, successful, free in comparison to other countries over the last two centuries. But, we had slavery, oppression of women & minorities, limited free speech, authoritarian government, the Great Depression and the Gilded Age whose attributes we're began to emulate in the last 20-30 years. This is not good. We're going back to extremes.

There's been lots of reports over those years about the rising inequality. [Here's a collection from NPR/WNYC] Let me give you some food for thought. Sasha Abramsky's book, "The American Way of Poverty" is one source. This is from WNYC's interview [link]
 "Poverty in America is made up of both the long-term chronically poor and the new working poor—the tens of millions seriously affected by the economic downturn and cutbacks in social welfare programs. Sasha Abramsky argues that for the majority of Americans, financial insecurity has become the new norm. He looks at economic inequality and poverty, and suggests ways for devising a fairer and more equitable social contract. In The American Way of Poverty, he looks at topics from housing policy to wage protections to affordable higher education, and calls political changes and a new, more effective War on Poverty."


Paul Krugman [blog, The Conscience of a Liberal] wrote a recent article about "Rich Man's Recovery" showing that since 2009, 95% of the economic gains have been captured by the top 1%. It's even worse, as 60% of the same gains have gone to even a smaller number of Americans, the 1/10th of 1%! Those are the ones with incomes over $1.9 million a year! I'm sure that the same people have been racking it in for many years before this period.

The Roosevelt Institute (yes, it's about FDR's progressiveness) shows a study that last year, the top 1% took home the largest share of income since 1928. But, the rich pay a bigger share of the taxes, we often hear! Well, this is indeed outrageous! The system that allows them to have so much more money while the middle class and the poor can't pay more is unconscionable! 

Romney pays 12.9% in income taxes while I'm paying 30% of my meager income, while I feel this pain a lot more.  How ridiculous is to say that a billionaire who pays 5% in taxes, writes a check of $50 million, while a teacher with a $50K/yr, pays only $15K?!! I know, how dare those laggards, the teachers, complain about tax policies? The super rich pay more in taxes that all the teachers in America. It's a scandal. Tsk.

Pro-capitalist publications, like the Economist and the Wall Street Journal, aside from their editorials, have published numerous articles about the widening of the gap in the US, that we're falling behind class-conscious and glass-ceiling old Europe. 

Which brings us back to the value of education which has a way to open people's minds just by exposing them to possibilities, knowledge, and hopefully how to evaluate, reason, and enhance the ability to ask questions and to amend. A better affluent, secure, less stressful life also enhances citizenship. You're more likely to be engaged, interested, voting, mobilizing citizen if you have the resources and the time to do so.

But, maybe that's what the elites don't want. Instead they invest heavily in the narrative of "feel good and proud American" while cutting the social safety net. This while higher education is getting more expensive. Oh, and you know what else follows the same track? Politics! 

But, don't you worry, the rich have lots of spare change to finance multi-billion dollar campaigns. We just sit back and relax and enjoy the show. They love tired and passive viewers for the show they've designed for us. Popcorn anyone? You poor with your refrigerators, microwaves, and flat-screen tvs... what more do you want? Have you noticed how deplorable the conditions are in Syria and Zimbabwe? Shut up then.

Americans Have No Idea About the True Wealth Inequality in this Country!

In my Comparative Politics class, we're discussing political economy these days and it's been an eye-opener for most, because what people think of reality, well, it isn't!

First, let's say that the purpose of civil society is to provide benefits to its members. In order for the political system to work for the benefit of the people--the common people, the majority of whom are in the middle class--it is best to pick a regime that has this foundation principle. In modern societies, this is a liberal-social democracy.

Liberal, because it safeguards and promotes individual rights and freedom. Social, because it provides a social safety net--services people need. Democracy, because it allows for popular participation and a government of-by-for the people.

A system needs legitimacy to be stable and for longevity. The modern state--a creation of the 18th-19th centuries--provided benefits but also a new narrative, myths, practices, and activities that turned people into citizens. Citizens who had obligations to the state but also benefits. Notions of patriotism and nationalism were forged out of this new reality. This has helped cohesion, elevated pride in one's country, and motivation.

If the system and the government are to work for the people, then we have to ask what, does this mean?  Well, I'm sure there are many views on this, but let me suggest a few items: happiness (yes, individually defined), good health, leisure, education, long life, less stress, stability, peace, clean environment, decent shelter, affluence, access to opportunity, economic mobility, justice, etc, etc.  This is the mission statement of a modern, advanced country. Obviously, this was not the mission of older systems, like the Old Regime.

In order to achieve the mission statement, societies/governments/rulers engaged in redistribution of resources and wealth.  Usually it was from the bottom up. This was not good unless you were a member of the elite. These members made all sorts of arguments (including might makes right) in favor of keeping their privileges. And, their appetite was insatiable. Louis the 14th needed more gold for his lavish palaces. Our modern super wealthy and their shills, most of the Republicans, have drawn the line that no tax increases, no matter how modest, should be applied to the upper classes.

 When Reality Escapes the American People

The Occupy Wall Street with its signs, "We're the 99%", brought needed attention to the upper 1% of the economic elites. Yet, the real magnitude of the problem is still unknown to the American people. The power of the myth, the cultural and political forces have managed to create a strong illusion. 

This illusion includes a good dose of patriotism and nationalism, but in a perverted way. "We're # one!"  Others are risking life and limb to get here. Look at the great things we've achieved, and still do. The American dream is alive! You can make it, like Bill Gates, Michael Jordan, and so many others. With hard work and a bit of luck anyone (most?) will make it ..big!  

It's hard to argue against the tendency to compare ourselves to societies far worse than ours. Somehow comparisons to other societies that have better outcomes aren't being made. Yes, there are several societies that have a better distribution of the economic pie, where people live longer, are healthier, more educated, have more leisure, live is safer environments, and report greater levels of happiness. Their political economies are, however, adjusted differently than the US.

As I speak with many students, I hear that they expect to be rich someday. Likewise, many ordinary Americans think they'll be rich one day, or at least part of the upper middle class. But, statistically speaking, this won't happen. 

Unfortunately, the reality isn't very rosy. The Economist, the Wall Street Journal--to name a couple pro-capitalist publications--have pointed out that economic mobility in the US has fallen behind western Europe! 

In a democracy where public opinion is important, where decisions are made based on people's perceptions, it matters greatly whether the public really knows the facts. 

For decades, studies have been consistent as to this public perception about economic reality in the US. People are asked what a fair society would be like. Then they're asked what they think the US is like in wealth distribution. Their guess is terrifyingly wrong!

Watch this video and forward it to everyone you know. 

 Wealth Inequality in the US

 

Who could have guessed it, that the top 1% control 40% of the wealth. That the bottom 80% of Americans have only 7% of the wealth, while the other top 19% own 53% of the wealth. Mind bungling.

Are We Better Off Today than 4 Years Ago?

Are we better off four years into Obama's presidency? Well, it depends how you look at it. I say, yes, we are! The previous chief and his crew started the fire that began to consume our house. This chief and his crew put out the fire and have began the rebuilding process. Is our house better since 2008? Probably yes. Is it better since we arrived? Probably not. However, the previous regime that created the whole mess now wants the keys back because the present regime hasn't completely fixed the mess!

Oh, and when the current chief asks for tools, programs, jobs, the Republicans in Congress say, NO! Under our system, the president can't raise or spend money unless Congress agrees. Further, we should never elect to high office persons and political parties that do not have a positive view regarding government. If they don't think our government can be a positive force for our commonwealth, they should stay away. No, government is not the answer to all problems, but it is the agent that reduces obstacles to freedom, to enhance access to opportunity, and to push for legal equality.

The numbers

Clinton was right, the Dems have created almost twice as many jobs despite controlling the White House for fewer years! The Repubs have created more deficits and increased the gap between the 1% and the rest. How about the market? Without including the Great Depression [guess who was mainly responsible for it?], had you invested in the market, under a Dem president you'd have gotten an annual return twice as big, 8.9% to 4.7%; including Hoover's term, then it drops to 0.4%! [Here's the link to those numbers]

Obama gets an "D" (barely passes) when it comes to political communication. He cut taxes for 95% of the middle class taxpayers and nobody knows it. The benefits of the health care law are not known to those not immediately affected by it, so many people think it's another big government program costing billions more, when it's not and it actually reduces medical expenses. One third of the stimulus went to tax breaks for working people!

There's been a huge investment in green jobs and the CBO reports that 2.5 millions jobs are a direct effect. Likewise for the automobile industry and the many private business connected to it. The stimulus package was mainly a jobs bill in essence, but Obama hasn't communicated that!

Banks got a bailout--private banks with very highly-paid execs--but that saved the financial system. It wasn't done in a way most of us would have liked, but it was necessary.

Where's G. W. Bush?

In 2008, the US had lost millions of jobs, and was losing hundred of thousands every month until the summer of 2009 when Obama's policies began to take effect. The conservatives started labeling the Great Recession as Obama's recession a week after the November election in 2008!

If the GOP really believes Obama is responsible not for the pace of the recovery but for the roots of the problem why don't they take G.W. Bush and his crew out of mothballs and parade them around today until the election? Did you hear Dubya's name at the GOP convention? I didn't either!

In 2008, the economy was shrinking 9% a year; it was like the entire economy of Canada disappearing! Deregulation and lack of oversight of Wall Street created many of the financial scandals. This is the philosophy and policies of the conservatives at play. Yes, many Democratic leaders also cater to Wall Street and big banks. A few support regulation of the marketplace and not a libertarian's paradise, like Somalia...

Why? Because capitalism needs referees, needs oversight, needs to be saved from itself. The more successful, stable, happy, safest, healthiest countries are the ones who have strong regulations and a good oversight. The more "pure capitalist" countries are on the opposite side of this spectrum. Check it out.

It's truly amazing that the US conservatives' policies attract so much support. Why Romney and his party are still competitive in this election... They are not saying anything different nor are proposing new policies but the ones that got us into a deep recession and worsened the position of the middle class.  Are we suffering from Alzheimer's as a nation? Let's see what happens on November 6th, 2012, when not only the presidency will be decided but Congress and the future Supreme Court.

Where Job Creation Comes From [hint: not from tax breaks to the super rich]

There are lots of myths in our society, some are good some are horrible. A good one is the idea of natural rights. That is, every person is born with certain unalienable rights, so the concept of a social contract is easier to imagine. I'm not questioning whether every human being should have fundamental rights, but how do you prove that everyone is born with equal rights? At any rate, the point of this essay is to discuss another harmful  myth, and that is, the notion that tax cuts for the rich is a good thing. This belief is an article of faith being constantly repeated by the conservatives, while leaders like president Obama and many in the Democratic Party are afraid to challenge it!

Class warfare is the term that scares many, like an actual war might be. Relax everybody, the war is over and the elites have won it. But, I was very surprised to hear that TED Talks censored a speech critical of this article of faith.

Watch this video by Nick Hanauer--a rich person who clearly makes sense about where job creation comes from.