Ryan Grim recalls how Obama, even though he came into office in 2009 in the wake of the 2008 financial crisis with much bigger Democratic majorities in both houses of congress than Joe Biden just obtained, got slow-walked by the Republicans who dangled the carrot of bipartisanship in front of him and managed to water down all his proposals. His weak response is blamed for the massive losses the party suffered in the 2010 and 2014 mid-term elections which resulted in Republicans winning the majorities in both chambers.
[Read more…]

While the GameStop controversy has faded from the news headlines, the issue is still roiling the markets. I was listening to an analyst who was saying that the people who are driving up the price of the stock may themselves end up losing a bundle. Some analysts are calling it yet another bubble that will burst at some point and then the stock price will revert to a more realistic value. But what is a realistic price of that stock? It seems to me that the price of a company’s stock is not based on anything tangible.
[Read more…]

2020 has been terrible for people working in the service sector and other low-wage jobs due to the effects of the pandemic. Thanks to various measures that have been passed in states and cities because of pressure by activists and labor unions, minimum wages are due to rise in some areas of the country providing at least some relief.

2020 was a devastating year for underpaid frontline workers.

But even in the face of public health and economic crises triggered by Covid-19, the Fight for $15 movement persisted, and now 24 states and 50 municipalities throughout the U.S. are set to raise minimum wages in 2021.

On New Year’s Day, 20 states and 32 cities will increase their minimum wage, with the wage floor in 27 of those jurisdictions reaching or exceeding $15 per hour. The January 1 raises will be followed by another round of wage floor hikes later in 2021, when four additional states and 18 localities will increase their minimum wage, 13 of them to at least $15 per hour.

[Read more…]

In an article The Silenced Majority: Can America still afford democracy? in the December 2020 issue of Harper’s Magazine, Rana Dasgupta argues that democracy is a luxury whose existence depends on inequality between nations that enables the rich in the wealthy societies to accommodate the democratic aspirations of its own citizens.

In the past, power was in the hands of those who had property. With the rise of organized labor as a force in the rich nations, that power was reduced but as long as the people of the poorer nations could be used to subsidize the elevated living standards of those in the richer ones, then democracy could be tolerated. But when that difference between nations begins to disappear, as is happening currently, then so does democracy. He argues that the ultimate death of democracy in the US will come at the hands of the big tech companies.


 [Read more…]

The only measure of the health of the country that Donald Trump cares about is the state of the stock market and he warned in the last debate that if Joe Biden wins, the market will crash. But the idea that investors just hang around until after the election results are released to make their decisions is absurd. They usually try to anticipate the future and take steps accordingly. Since Biden has been leading in the polls consistently for some time, if investors really feared a Biden win, the market would have already tanked.
[Read more…]

Evidence continues to grow about the decline of the US. The latest comes from the annual report of the Social Progress Index. As Kevin Drum describes it:

The index includes things like health care, access to education, personal safety, sanitation, human rights, and so forth, and combines them all into a single number. This number doesn’t change a lot from year to year, and from 2011 to 2016 it went up by 0.34 in the United States. Since then, however, it’s fallen by an astonishing 1.06 in just four years. We now rank 28th in the world, just behind Greece.

Note that this isn’t an economic index. The US is still one of the richest countries in the world. We just aren’t using those riches to make much social progress.

This is really not a surprise. Social progress does not register in the consciousness of Trump and the Republicans. What drives them is power and greed.

There is always one major problem when you take multiple measures and then weight them to arrive at a single number. That single number enables you to compare different countries but that number also depends on how you weight the individual items to get the composite result and that introduces a lot of subjectivity because if you change the weighting, you can get a different rank order of countries. So the more meaningful use of such data is to take a longitudinal approach and see how, keeping the weighting system unchanged, the number changes over time, rather than take a snapshot approach and compare different countries at one time.

That the wealthy have been steadily increasing their share of the wealth has been obvious for some time. Reader Tadas sent me a link to an article that has quantified the amount siphoned off by them during the past four decades and it is a staggering $50 trillion since the year 1975.

This is not some back-of-the-napkin approximation. According to a groundbreaking new working paper by Carter C. Price and Kathryn Edwards of the RAND Corporation, had the more equitable income distributions of the three decades following World War II (1945 through 1974) merely held steady, the aggregate annual income of Americans earning below the 90th percentile would have been $2.5 trillion higher in the year 2018 alone. That is an amount equal to nearly 12 percent of GDP—enough to more than double median income—enough to pay every single working American in the bottom nine deciles an additional $1,144 a month. Every month. Every single year. [My emphasis-MS]
[Read more…]