Read the keystone essay: What Is Market Capitalism and Why Do We Need to Understand It?
The US Economy
The US economy is still the largest in the world and it makes us one of the richest nations on earth. We think of it as the most dynamic, innovative, technologically advanced in the world. However, the trends of the recent decades show that there is much to be concerned about.
The results are extremely tilted in the favor of the top 10% and even then to the top 1% really. Everyone else has not had a pay raise in forty years. We are well beyond the transition from an economy that was dominated by manufacturing, making things, to a services economy with an outsized chunk of that concentrated in the super profits of the financial sector. Throughout the economy the educational requirements have changed from a simple high school diploma to a college degree and higher. Automation and process improvements have driven enormous increase in labor productivity but very little to none of the benefits have remained available to the bottom 905 of the population.
The focus of this delusion, the US economy, is on understanding the trends and seeking suggestions for policies that could make the results more equitably distributed and the externalized social and environmental costs more agreeable.
Posts about the US Economy

The phenomenon of Trump is so disturbing that it requires our entire mental attention. He creates so much noise that, for many, the only strategy is to turn off the news. His election, despite his obvious pathological narcissism,1 requires a profound explanation that may even draw on the concept of evolutionary maladaptation. This is certainly my state of mind. But, another view is that Trump is simply the next phase in the fifty-year social movement —>> read more –>>
Footnotes
- Some would prefer solipsism to narcissism. In that view, Trump is at the center of the world and completely self-referential.

Changes in Economic Policy and Regulation In two earlier posts, “What is financialization and why does it matter? – part 1” and “What is financialization and why does it matter? – Part 2” we defined financialization and discussed the changes in the financial sector of the economy as well as the changes in the behavior of corporations under financialization. These could not have occurred without changes in the regime of laws and regulations that control —>> read more –>>
Footnotes
- A stock buyback occurs when a company uses company financial resources to buy its own shares on the market. The reduction in the number of shares outstanding in the market produces a rise in the price of the remaining shares.

Changes in the behavior of nonfinancial corporations – the real economy In Part 1 we reviewed the definition of financialization and “Changes in the structure and operation of financial markets”. Go back to that first post in this three-part series, “What is financialization and why does it matter? – part 1” to review the definition and those changes. Shareholder Value Theory and Changes in Management Focus The financialization of corporations is a natural extension of —>> read more –>>
Footnotes
- In a 1970 piece in the New York Times, Milton Friedman declared, “There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.” (see Milton Friedman, “A Friedman Doctrine‐- The Social Responsibility Of Business Is to Increase Its Profits,” The New York Times, September 13, 1970, sec. Archives, https://www.nytimes.com/1970/09/13/archives/a-friedman-doctrine-the-social-responsibility-of-business-is-to.html.)
- A stock buyback occurs when a company uses company financial resources to buy its own shares on the market. The reduction in the number of shares outstanding in the market produces a rise in the price of the remaining shares.
- Lenore Palladino and William Lazonick, “Regulating Stock Buybacks: The $6.3 Trillion Question” (Roosevelt Institute, 2021)
- https://www.cnbc.com/2021/12/30/buybacks-are-poised-for-a-record-year-but-who-do-they-help.html accessed 2.29.2022
- See William Lazonick et al., “US Pharma’s Financialized Business Model,” Institute for New Economic Thinking Working Papers, no. No. 60 (July 13, 2017): 28. for a discussion of big pharma’s use of financialized strategies.
- Daniel Foelber, “Apple’s Annual Buybacks Hit a 3-Year Low. Should Investors Be Concerned?” The Motley Fool, November 8, 2023, https://www.fool.com/investing/2023/11/08/apple-stock-annual-buybacks-3-year-low-buy-sell/.
- https://ourfinancialsecurity.org/2021/11/fact-sheet-tax-corporate-stock-buybacks-that-enrich-executives-and-worsen-inequality/?utm_source=chatgpt.com

Today, I came across this article on Medium: The Rich Are Hoarding Wealth—Because They Know What’s Coming by Angus Peterson. I have regularly referred to the state of our species as a crisis of global warming, exhaustion of the earth’s resources, and species extinction (including ours). Peterson expands this list of the polycrisis to include “climate change, biodiversity loss, resource overshoot, economic instability, and authoritarian creep.” From my perspective, I would adapt this a bit. —>> read more –>>
Footnotes
- See my post "Thoughts on ending billionaire wealth – “Every billionaire is a policy failure”"
- https://www.usnews.com/news/national-news/articles/how-many-billionaires-are-in-trumps-administration-and-what-is-their-worth

A reader of my recent post, “Bernie Sanders got much right about our current situation….” commented: “Thank you Mark for validating what we know to be true with real data. Now what do we do about it?” My perspective on our situation has shifted because I have come to recognize that American life has been transformed over the past 50 years. The Trump era, following 2016, marks the culmination of a long campaign by the —>> read more –>>
Footnotes
- This quote is attributed to Indigenous Cherokee elder Stan Rushworth. The quote became popular on social media in various forms, most recently in September 2020.
- An underlying theme here is that anonymity is inimical of a healthy, egalitarian society.
- See the call to end anonymity in public life below
- Company stock buybacks were illegal price manipulation until the regulations were changed in 1982 under President Reagan.
- See the MIT Living Wage Calculator for example data on living wages for various family sizes and locations.
- Attention must be paid not to exceed the capacity of any sector of the economy because that would provoke inflation.
- See my "Video Post – It’s time to admit that US health system is 3rd rate, or worse" for more about the performance of our healhtcare system.
- See Smil, Vaclav. How the World Really Works: A Scientist’s Guide to Our Past, Present and Future. UK: Viking, an imprint of Penguin Books, 2022.

Background Cerberus Capital, a private equity firm, began buying several hospitals in Massachusetts in 2010. In 2015, Cerberus sold most of its hospitals’ property to other investors for $1.25 billion. This suddenly added significant lease (rent) costs to the hospitals’ budgets. Other cost-cutting practices were applied. The hospitals then provided worse patient care, more falls, hospital-acquired infections, and patient readmissions. In May 2024, the entire nationwide Steward Healthcare system of hospitals declared bankruptcy. The state —>> read more –>>
Footnotes
- https://www.wgbh.org/news/local/2024-08-27/cloaked-in-secrecy-steward-health-care-drama-will-extend-into-september
- Brendan Ballou, Plunder: Private Equity’s Plan to Pillage America (New York: PublicAffairs, 2023). Chapter 1 Part 1.
- Going "private" means that the company is not traded publicly and thus is not subject to public disclosure of its performance.
- Under the carried interest deduction, the profits received by the investment managers are treated as long-term capital gains rather than ordinary income. Long-term capital gains are generally taxed at a lower rate than ordinary income.
- Ayash, Brian, and Mahdi Rastad. “Leveraged Buyouts and Financial Distress.” SSRN Scholarly Paper. Rochester, NY, July 20, 2019. https://doi.org/10.2139/ssrn.3423290
- Rogé Karma, “The Secretive Industry Devouring the U.S. Economy - The Atlantic,” The Atlantic, October 30, 2023, https://www.theatlantic.com/ideas/archive/2023/10/private-equity-publicly-traded-companies/675788/.

Ben Casselman wrote this piece in the 1.10.2025 NYTimes: “Economists Are in the Wilderness. Can They Find a Way Back to Influence?” The article cites the following as evidence of the decline of economists’ influence: Trump’s tariff plans, immigration, free trade, failure to foresee the global financial meltdown of 2008, deindustrialization, and a long-term slowdown in economic growth despite tax cuts. I won’t indulge myself in reciting the many false assumptions underlying neo-classical economics.25 No mention —>> read more –>>
Footnotes
- Neoclassical economics is the orthodox economics taught in virtually every higher education institution in the world today. It is filled with false assumptions about the world and presented in pseudo-scientific mathematics that intimidates those not well-versed in higher mathematics. It assumes no role for government or politics in setting the rules and regulations in which capitalism operates. In fact, the word capitalism almost never escapes an orthodox economist's lips, let alone enter their minds. The word “capitalism” appears only once in the 690 pages of the textbook Krugman, Paul R, and Robin Wells. Macroeconomics. 4th revised edition. New York, NY: Worth Publishers, 2015. Even then, it is only in a quote from a NYTimes journalist. In another widely used text, Campbell McConnell, Stanley Brue, and Sean Flynn, Economics: Principles, Problems, and Policies, 18th ed. (McGraw-Hill Irwin, 2009) the word “capitalism” appears only six times in 917 pages.
- American Compass is a Washington think tank that self-describes itself as a home for conservative economics
- https://americancompass.org/2023-cost-of-thriving-index/
- Between 1946 and 1978 productivity (output of goods and services per hour of labor) rose 2.5% per year while average wages rose 2.4% per year. A very equal sharing of gains to business with the workforce.
- (RAND Corporation, September 14, 2020), https://www.rand.org/pubs/working_papers/WRA516-1.html.
- Note that all of these dollars are in inflation-adjusted 2018 dollars. Constant buying-power dollars.
- Please note that the income distribution in 1975 was not ideal. There was significant inequality. From our current perspective, though, it seems idyllic compared to the transformations of the last 40 years.
- Price, Carter C., and Kathryn A. Edwards. “Trends in Income From 1975 to 2018.” (RAND Corporation, September 14, 2020). https://www.rand.org/pubs/working_papers/WRA516-1.html.
- A stock buyback occurs when a company uses company financial resources to buy its own shares on the market. The reduction in the number of shares outstanding in the market produces a rise in the price of the remaining shares. Buybacks were illegal until rules were changed in 1982 under President Reagan. Previously, they were considered stock price manipulation.
- https://ips-dc.org/wp-content/uploads/2024/08/executive_excess_2024_ips_report.pdf
From a recent email from Bernie Sanders with this byline: “Yes. In the wealthiest country on earth let us Make America Healthy Again.”, I extracted these headline proposals. Medicare for All. Lower the cost of prescription drugs. Paid Family and Medical Leave. Reform the food industry. Raise the minimum wage to a living wage. Lower the work week to 32 hours with no loss of pay. Combat the epidemic of loneliness, isolation and mental illness. —>> read more –>>
Footnotes
- This quote is attributed to indigenous Cherokee elder, Stan Rushworth The quote became popularized on social media in various forms, most recently in Sep 2020.
- Attention must be paid not to exceed the capacity of any sector of the economy because that would provoke inflation.
- See Smil, Vaclav. How the World Really Works: A Scientist’s Guide to Our Past, Present and Future. UK: Viking, an imprint of Penguin Books, 2022.

In the wake of Trump’s victory over Harris there has been much hand-wringing over how to explain the obvious trend among Americans to favor Republicans. Is the Democratic Party too focused on social issues? Is this alienating white males in particular? Did the party underestimate the general misogyny of voters? Somehow, and perhaps because billionaires and corporations are such a source of money for the party, the Democratic Party, in general, has not discussed the —>> read more –>>
Footnotes
- https://www.facebook.com/watch/?v=941635388031412
- 2010 constant dollars. See: https://fred.stlouisfed.org/series/NYGDPPCAPKDUSA
- See https://americancompass.org/2023-cost-of-thriving-index/
- https://americansfortaxfairness.org/tax-day-approaches-new-study-finds-u-s-billionaires-now-worth-record-5-8-trillion/

American Compass is a self-described think tank for conservative economics. From its Mission Statement page: “We are developing the conservative economic agenda to supplant blind faith in free markets with a focus on workers, their families and communities, and the national interest.” There is much to admire about the analysis of our situation here. Globalization is accurately described as a failure to develop broader economic growth around the world, with its true face as the —>> read more –>>
Footnotes
- https://americancompass.org/productive-markets/
- https://americancompass.org/responsive-politics/
- Gilens, Martin. Affluence and Influence: Economic Inequality and Political Power in America. Princeton, N.J; New York: Princeton University Press ; Russell Sage Foundation, 2012.; and Gilens, Martin, and Benjamin I. Page. “Testing Theories of American Politics: Elites, Interest Groups, and Average Citizens.” Perspectives on Politics 12, no. 3 (September 2014): 564–81. https://doi.org/10.1017/S1537592714001595. This article has been cited over 3,250 times by other scholars.
- is the definition by econometricians of a "highly concentrated market"
- Though the word "monopoly" suggests that only one company can constitute a concentrated market, while econometricians stick with their three or four company rule, we will use the terms interchangeably.
- Spencer Kwon, Yueran Ma, and Kaspar Zimmerman, “100 Years of Rising Corporate Concentration” (BusinessConcentration.com), accessed June 6, 2024, https://businessconcentration.com/.

For the period between the end of WWII and 1979 there was productivity growth of ~ 55%. That means that for an hour’s work the economic value has grown by 55%. Over that period workers’ wages grew in parallel. As the economy flourished, so did the vast bulk of the population Many times over the past four or five years, we have mentioned the great wage stagnation that began in roughly 1979 and extends to —>> read more –>>
Footnotes

In the fall of 2011, a large group of protestors occupied areas around Wall St. in NYC for six weeks under the banner of “We are the 99%” At the same time, there were protests around the world in financial centers. These followed the financial collapse of 2008, and the $ trillions poured into the financial centers to bailout them out. The socialization of private risk-taking. Not a single Wall Street big wig was brought —>> read more –>>
Footnotes
- https://archive.vanityfair.com/article/2011/5/of-the-1by-the-1for-the-1
- See Carter C. Price and Kathryn A. Edwards, “Trends in Income From 1975 to 2018” (RAND Corporation, September 14, 2020), https://www.rand.org/pubs/working_papers/WRA516-1.html.. The Rand Corp. has been a prominent research-consulting firm since the 1950s. It is no Washington Beltway leftist think tank. No, it famously mostly does research the Pentagon and other elements of the security state. This report from 2020 details how correct the 1% rhetoric of Occupy Wall Street truly is.

A key part of the description of capitalism in orthodox (neoclassical) economics, and our political rhetoric, is the role competition between companies plays in keeping the automatic self-regulation of markets humming for the most efficient and effective production at optimal prices. Competition is also regularly touted as a great driver of innovation. Leaving aside the persistent questions about the veracity of this model of markets, competition has been dead in the US for decades. Oh, —>> read more –>>
Footnotes
- https://www.nytimes.com/2018/11/25/opinion/monopolies-in-the-us.html
- Note that we continue to use the term 'monopoly' and all its cousins to refer to concentrated markets. 'Oligopoly' is also used. All of these terms are synonymous with concentrated markets.
- From https://www.statista.com/statistics/242549/digital-ad-market-share-of-major-ad-selling-companies-in-the-us-by-revenue/ accessed 3.12.2022
- https://www.supermarketnews.com/independents-regional-grocers/walmart-kroger-costco-make-top-three-grocery-retailers-list
- https://www.theguardian.com/environment/ng-interactive/2021/jul/14/food-monopoly-meals-profits-data-investigation accessed 6.23.2024
- Spencer Kwon, Yueran Ma, and Kaspar Zimmerman, “100 Years of Rising Corporate Concentration” (BusinessConcentration.com), accessed June 6, 2024, https://businessconcentration.com/.

Neoliberalism is the word most frequently used by commentators and academics when discussing the changes in the US economy over the past 50 years. For most people, this is a completely useless term. Are we talking about some new form of the New Deal? Then, we must yank ourselves back to 19th-century European liberalism to discover what neo is. Then, we are thrust into a very small world of political thinking that emerges chiefly from —>> read more –>>
Last spring, I moved with my wife Karen Davis from Hudson, NY to West Palm Beach, FL. In part, this was to be closer in our aging years to one of our children. We bought a condominium in a vintage 1969 10-story building right on the Intracoastal Waterway, across the way from Palm Beach, where billionaires and Donald Trump have their palaces. We have twice experienced gentrification in our earlier lives. Beginning in the late —>> read more –>>

October 2024 The US Congressional Budget Office has updated it findings on wealth inequality. Since 1989 the top 10%’s share of wealth has increased from 56.5% to 60.1% in 2022. As usual the top 1% did even better with its wealth share gaining 4.4% over the same time period. Meanwhile the bottom 50% of the population remain stuck at a 6.4% share of the country’s total wealth. Not shown here is the fact that —>> read more –>>
Milton Friedman 53 asserted in his 9.13.1970 NYTimes opinion piece that “there is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.”54 Within a decade this mantra, combined with changes in laws and regulations of corporate behavior, unleashed the —>> read more –>>
Footnotes
- Friedman was a famous economist from the 1960s through the end of the 20th century. He was a founder of the Chicago school of neoclassical economics and a leading conservative voice
- https://www.nytimes.com/1970/09/13/archives/a-friedman-doctrine-the-social-responsibility-of-business-is-to.html
- Who are the Low Wage 100? The 100 S&P 500 corporations with the lowest median wages.

Much is being made of a Delaware court blocking Musk’s $50 billion compensation contract. See the reporting in the NYTimes: Elon Musk’s Tesla Pay Package Is Voided by Judge. The court found that the compensation was set by a Board of Directors of Tesla who are in Musk’s pocket. “The process leading to the approval of Musk’s compensation plan was deeply flawed. Musk had extensive ties with the persons tasked with negotiating on Tesla’s behalf. —>> read more –>>
Footnotes

Its the time of year for summations, usually for just the previous year. My selection of charts explains much of the past 45 years for the rich, middle-class, and poor in America. The Great Divide The dark blue line describes the growth in productivity. That is the dollar value of output per hour of labor. It has been rising fairly steadily for the entire post-WWII era. This is the result in improvements in technology and —>> read more –>>
Footnotes
- Price, Carter C., and Kathryn A. Edwards. “Trends in Income From 1975 to 2018.” RAND Corporation, September 14, 2020. https://www.rand.org/pubs/working_papers/WRA516-1.html.
- All dollars are constant inflation-adjusted dollars - apples to apples

Last year, at about this time, I tapped away at the list below. In recent days I returned to the question of a new Siege of Angers. I came up with little new and found that last year’s Siege of Angers remained at the top of my mind. The one exception is the continuing siege of fascism spearheaded by Trump. We need to counter-attack vigorously. I don’t believe the Democrats are in a position to —>> read more –>>
Footnotes
- Carter C. Price and Kathryn A. Edwards, “Trends in Income From 1975 to 2018” (RAND Corporation, September 14, 2020), https://www.rand.org/pubs/working_papers/WRA516-1.html.
- Please note that the income distribution in 1975 was not an ideal. There was significant inequality. From our current perspective, it seems idyllic compared to the transformations of the last 40 years.
- Price, Carter C., and Kathryn A. Edwards. “Trends in Income From 1975 to 2018.” (RAND Corporation, September 14, 2020). https://www.rand.org/pubs/working_papers/WRA516-1.html.
- For another day, we could look at the wealth inequalities that this has produced. Much worse!
- The classic origin text is Hayek, Friedrich A. von. The Road to Serfdom. G. Routledge, London, 1944.
- This movement was also championed in the UK and then forced on much of the developing world through US foreign policy, the International Monetary Fund, and the World Bank
- The “liberalism” of neoliberalism is not the liberalism we associate with FDR and the Democratic Party here in the US. The academics who coined this word were referring to 18th and 19th century European liberalism. A different beast.
- First Inaugural Address on January 20, 1981
- see Mariana Mazzucato, The Entrepreneurial State: Debunking Public vs. Private Sector Myths, Revised edition (New York, NY: PublicAffairs, 2015)
- Just search for "monopoly"(click on this link to conduct the search) on this website for many discussions of monopolization.
- https://www.openmarketsinstitute.org/learn/monopoly-by-the-numbers
- I have to credit my stepson Jonathan London, Professor of Global Political Economics at Leiden University in the Netherlands, with this observation.
- Lewis Powell, “Memorandum: Attack On American Free Enterprise System | Lewis F. Powell Jr. Papers | Washington and Lee University School of Law” (August 23, 1971), https://scholarlycommons.law.wlu.edu/powellmemo/.
- https://www.opensecrets.org/federal-lobbying
- Martin Gilens and Benjamin I. Page, “Testing Theories of American Politics: Elites, Interest Groups, and Average Citizens,” Perspectives on Politics 12, no. 3 (September 2014): 564–81, https://doi.org/10.1017/S1537592714001595.

This video from 1Dime is a very good introduction to the actual workings of money in the economy. Though for my tastes, the video is burdened with way too many gratuitous visual gimmicks and fluffery, it is very well researched and presented. You will get a solid introduction to most of the important concepts in Modern Money Theory (aka neo-Keynesianism). Much to my satisfaction the description field on YouTube provides a serious list of sources —>> read more –>>

Here at 114 Warren, our nearly twenty-year-old Bosch dishwasher has begun to leak water out of the bottom of the door chronically. So, investigations of the gaskets and repairs on the web have led to numerous posts and videos. The symptoms are somewhat mysterious. The leak only appears about 10 to 15 minutes into the 35 minute cycle. In the end, it appears that I will have to undertake replacing the gaskets. Then I thought, —>> read more –>>

This week’s fraud trial appearances by the Trump boys, Don, Jr. and Eric, Executive VP and Executive VP of Development and Acquisitions respectively in the Trump Organization, caused me to reflect on the duties of a manager. “As he [Eric] started his testimony, he said he “never had anything to do with the statement of financial condition,” didn’t believe he’d ever seen one, “was not personally aware” of the document and ”didn’t know anything about —>> read more –>>
Footnotes
- https://fortune.com/2023/11/03/eric-trump-testifies-fraud-trial-never-worked-donald-financial-statements-emails-testimony-involvement/
- https://en.wikipedia.org/wiki/Enron_scandal

Google turns 25 today. It has a surprisingly benign public image. Google describes its mission as: “Our mission is to organize the world’s information and make it universally accessible and useful.”74 Forgotten or ignored is that Google (part of the holding company Alphabet, Inc.) is just a giant advertising machine. Its search algorithms are designed to generate advertising revenue. A whole industry is devoted to making stuff on the internet attractive to Google’s search machines. —>> read more –>>
Footnotes
- from Google About page.
- list from Google's Bard answer machine, competitor to ChatGPT in the AI sphere, in response to this prompt: "what are other words for attention engineer?"
- all data comes from Bard
- A stock buyback is the repurchase by a company of its own shares. This reduces the number of shares in circulation and drives share prices up. Until 1982, stock buybacks were illegal. Seen as stock price manipulation. Since the Reagan administration legalized them, the scale is staggering, "The 465 companies in the S&P 500 Index in January 2019 that were publicly listed between 2009 and 2018 spent, over that decade, $4.3 trillion on buybacks,..." (William Lazonick, Mustafa Erdem Sakinç, and Matt Hopkins, “Why Stock Buybacks Are Dangerous for the Economy,” Harvard Business Review, January 7, 2020, https://hbr.org/2020/01/why-stock-buybacks-are-dangerous-for-the-economy.) A further benefit to the companies and their shareholders is that the cost of stock buybacks is a business expense so no corporate income taxes need to be paid.
- source:Bard: prompt: "How much has Alphabet, Inc spent on stock buybacks?"

A video version of the earlier post, “$47 Trillion – the ripoff by the rich and corporations – in two charts – maybe a few more…..” is available on YouTube: https://youtu.be/IkyyV96kW3s?si=JkWUnKtNLwyAWR_A

The other day I was poking around in TikTok to see what it is all about. Came across a quote from Karl Marx that struck a chord. “There must be something rotten in the very core of a social system which increases its wealth without diminishing its misery.”79 Here we are 164 years later and this observation is perhaps even more telling. This is particularly so because we are a very rich country. The US —>> read more –>>
Footnotes

I was already 31 years old when the rip-off of America began in 1979. I was busy, and the changes in American life were only occasionally to be noticed. By the mid-1980s my management life started to feature the early signs of the financialization of the corporation. I knew of Milton Friedman’s famous dictum, “there is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its —>> read more –>>
Footnotes
- Carter C. Price and Kathryn A. Edwards, “Trends in Income From 1975 to 2018” (RAND Corporation, September 14, 2020), https://www.rand.org/pubs/working_papers/WRA516-1.html.
- Please note that the income distribution in 1975 was not an ideal. There was significant inequality. From our current perspective, it seems idyllic compared to the transformations of the last 40 years.
- Price, Carter C., and Kathryn A. Edwards. “Trends in Income From 1975 to 2018.” (RAND Corporation, September 14, 2020). https://www.rand.org/pubs/working_papers/WRA516-1.html.
- For another day, we could look at the wealth inequalities that this has produced. Much worse!
- The classic origin text is Hayek, Friedrich A. von. The Road to Serfdom. G. Routledge, London, 1944.
- This movement was also championed in the UK and then forced on much of the developing world through US foreign policy, the International Monetary Fund, and the World Bank
- The “liberalism” of neoliberalism is not the liberalism we associate with FDR and the Democratic Party here in the US. The academics who coined this word were referring to 18th and 19th century European liberalism. A different beast.
- First Inaugural Address on January 20, 1981
- see Mariana Mazzucato, The Entrepreneurial State: Debunking Public vs. Private Sector Myths, Revised edition (New York, NY: PublicAffairs, 2015)
- Just search for "monopoly"(click on this link to conduct the search) on this website for many discussions of monopolization.
- https://www.openmarketsinstitute.org/learn/monopoly-by-the-numbers
- I have to credit my stepson Jonathan London, Professor of Global Political Economics at Leiden University in the Netherlands, with this observation.
- Lewis Powell, “Memorandum: Attack On American Free Enterprise System | Lewis F. Powell Jr. Papers | Washington and Lee University School of Law” (August 23, 1971), https://scholarlycommons.law.wlu.edu/powellmemo/.
- https://www.opensecrets.org/federal-lobbying
- Martin Gilens and Benjamin I. Page, “Testing Theories of American Politics: Elites, Interest Groups, and Average Citizens,” Perspectives on Politics 12, no. 3 (September 2014): 564–81, https://doi.org/10.1017/S1537592714001595.

My previous post, “$47 Trillion – the ripoff by the rich and corporations – in two charts – maybe a few more…..” raises the question of exactly what 47,000,000,000,000 amounts to. There are so many “0”s! Let’s work with a one-dollar US paper bill. So how many dollar bills do we have to pile up to equal the height of the tallest building on Billionaire Row in Manhattan? This tower is 1,550 ft. tall (472 —>> read more –>>

By chance, I saw an exhibition titled “The Future of Money” (thru 9.9.2023) at the Art Museum of The Hague, Netherlands in May 2023. The central work is a very large drawing that illustrates the flows of money through the economy. Now there is a video tour of this work with English narration. Given the research I have done over the last six months on how money and the finance system works this video —>> read more –>>
Footnotes
- see Nichols, Dorothy, and Anne Marioe Gonczy. “Modern Money Mechanics : A Workbook on Bank Reserves and Deposit Expansion.” Federal Reserve Bank of Chicago, rev.1992 1961.
- here is a snippet from the 60 Minutes interview from October 10, 2009: https://youtu.be/hiCs_YHlKSI

Only the oldest amongst my readers will remember Edward R. Murrow’s 1960 CBS TV report Harvest of Shame (opens CBS channel on YouTube) that reported on migrant farm workers, including scenes from upstate NY and Long Island. Unfortunately, not a lot has changed for the better in the lives of migrant farm workers over the last 63 years. For instance, here in New York State “The phased-in, gradual reduction in the overtime pay threshold will begin —>> read more –>>
Footnotes

Reich is offering an online course, “Wealth & Poverty”, that started today. I watched the first lecture, “What Happened to Income and Wealth?” Looks like this will be worth some ongoing effort. I suggest being ready at the fast forward button for the parts of the class when Reich is querying the students and using various digital polling tools that seem to be standard issue in university lecture halls. After the introductory blather, he opens —>> read more –>>

In the last couple of years articles have begun to appear with titles like: When Private Equity Becomes Your Landlord Where Have All the Houses Gone: Private Equity, Single-Family Rentals, and America’s Neighborhoods Meet the Latest Housing-Crisis Scapegoat Wall Street has purchased hundreds of thousands of single-family homes since the Great Recession. Here’s what that means for rental prices So, private equity firms (PE) are busy in the housing market. The exact scale of this —>> read more –>>
Footnotes
- Chris Morran Petty Daniel, “What Private Equity Firms Are and How They Operate,” ProPublica, August 3, 2022, https://www.propublica.org/article/what-is-private-equity.
- Much of this description of how PE works comes from Eileen Appelbaum and Rosemary Batt, Private Equity at Work: When Wall Street Manages Main Street (Russell Sage Foundation, 2014).
- “Everything Is Private Equity Now,” Bloomberg.Com, October 3, 2019, https://www.bloomberg.com/news/features/2019-10-03/how-private-equity-works-and-took-over-everything.
- Milton Friedman, “A Friedman Doctrine‐- The Social Responsibility Of Business Is to Increase Its Profits,” The New York Times, September 13, 1970, sec. Archives, https://www.nytimes.com/1970/09/13/archives/a-friedman-doctrine-the-social-responsibility-of-business-is-to.html.

China spends more on importing computer chips – $260 billion87 in 2017 – than it does importing oil. President Biden’s recent bans on the export of American-made chips to China as well as a ban on companies throughout the world using American technology to export to China intends to make it even more expensive and continue Chinese dependence for this crucial bit of technology gear. Keep in mind that microchips are used in every conceivable —>> read more –>>
Footnotes

Plus ça change, plus c’est la même chose. Here is a book review I posted on markorton.com 3.24.2001 When Work Disappears: The World of the New Urban Poor – book review When Work Disappears: The World of the New Urban Poor Book Review: William Julius Wilson, When Work Disappears: The World of the New Urban Poor(New York: Alfred A Knopf, 1997) Race is never far from the surface in America’s public or private worlds. The —>> read more –>>

Original posting – 3.6.2023 Matthew Desmond, author of Evicted: Poverty and Profit in the American City88, has a new book Poverty, by America set to be released shortly. He has written a piece for the NYTimes, “Why Poverty Persists in America”89 that is worth a read. He poses this question early on, “Why, then, when it comes to poverty reduction, have we had 50 years of nothing?” He cites a ton of statistics to prove —>> read more –>>
Footnotes
- Matthew Desmond, Evicted: Poverty and Profit in the American City (Penguin Books, 2016)
- https://www.nytimes.com/2023/03/09/magazine/poverty-by-america-matthew-desmond.html
- https://www.nytimes.com/2019/02/24/opinion/income-inequality-upper-middle-class.html
- There is variation amongst the analyses of whther the upper class is the top 20% or 10% of the population. In anyt event it is clear that the vast bulk of the population is in the loser column.

Today, March 14, 2023 is Equal Pay Day “This date symbolizes how far into the year women must work to earn what men earned in the previous year.”92 Women have to work a fifth of a year longer to make it to the same pay as men. The wage gap for Black and Latino women is much larger. A Simple Step to a Solution Pass a law requiring all employers to post the actual annual —>> read more –>>
Footnotes

Financialization is an awful word. It sounds clumsy in the mouth and refers to a process that has been underway for over 40 years but is nearly unknown to most of us. Before we get to Norfolk Southern, the railroad company, what is financialization? Basically, financialization is a nested set of changes in business concepts and operations that center around the notion that money is the only purpose of business. Money is the only object —>> read more –>>
Footnotes
- https://www.nytimes.com/1970/09/13/archives/a-friedman-doctrine-the-social-responsibility-of-business-is-to.html
- https://robertreich.substack.com/p/warren-buffett-is-dead-wrong-about
- from summary of Thomas Palley, “Financialization: What It Is and Why It Matters,” Working Paper Levy Economics Institute at Bard College. No. 25 (December 2007).
- https://www1.salary.com/Alan-H-Shaw-Salary-Bonus-Stock-Options-for-NORFOLK-SOUTHERN-CORP.html

Here are two more angers: (an addendum to the 1.1.2023 post: My Year End Siege of Angers – the list) Guns: “Eighteen percent of U.S. households purchased a gun since the start of the pandemic (March 2020–March 2022), according to new survey data from NORC at the University of Chicago, increasing the percentage of U.S. adults living in a household with a gun to 46%. Over this period, one in 20 adults in America (5%) purchased —>> read more –>>
Footnotes
- https://www.norc.org/NewsEventsPublications/PressReleases/Pages/one-in-five-american-households-purchased-a-gun-during-the-pandemic.aspx
- https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2789269
- https://www.theguardian.com/us-news/2023/jan/06/us-police-killings-record-number-2022
- Peter Temin, The Vanishing Middle Class: Prejudice and Power in a Dual Economy, 2017.

Yesterday as I was taking a walk up and down Warren St. here in Hudson I realized that I had become actively angry about the state of the US and the world. I walked past hotels where a single room would set you back $400 for a night or you could go for the suite that is a mere $1300. This in a country where 32% of the people can’t pay an unexpected $400 bill.100 —>> read more –>>
Footnotes
- https://www.federalreserve.gov/publications/2022-economic-well-being-of-us-households-in-2021-dealing-with-unexpected-expenses.htm
- https://inequality.org/great-divide/updates-billionaire-pandemic/
- see the empirical study Martin Gilens, Affluence and Influence: Economic Inequality and Political Power in America (Princeton, N.J; New York: Princeton University Press ; Russell Sage Foundation, 2012).
- https://watson.brown.edu/costsofwar/figures/2021/BudgetaryCosts
- https://watson.brown.edu/costsofwar/figures/2021/WarDeathToll
- https://www.nytimes.com/2022/10/26/nyregion/nyc-homeless-students.html
- https://www.justia.com/criminal/offenses/homicide/involuntary-manslaughter/
- https://www.washingtonpost.com/politics/2021/01/24/trumps-false-or-misleading-claims-total-30573-over-four-years/
- https://www.prisonpolicy.org/research/mental_health/
- https://www.rollingstone.com/politics/politics-news/the-great-american-bubble-machine-195229/
- https://khn.org/news/article/hospices-private-equity-firms-end-of-life-care/ and https://www.newyorker.com/magazine/2022/12/05/how-hospice-became-a-for-profit-hustle

Southwest Airlines canceled thousands of flights representing more than 80%of all cancellations during the Christmas 2022 snowstorm. The scale of this service implosion led to stories about old software systems for managing passenger bookings and flight schedules. Then, discussions of Southwest’s point-to-point flight strategy that differs from the other major airlines’ use of hub and spoke arrangements. Somewhere in the midst of these stories and the inevitable interviews with passengers stranded in one city while —>> read more –>>
Footnotes

The work to revise and expand my 2018 essay “Capitalism – a critique” has entered its final stages. A final draft has been distributed to a number of readers for comment and critique. I am now working on a book version. Capitalism – the actual workings – is the new working title for the book. A5 size (roughly 6 x 9 inches). Roughly 50 pages including endnotes and bibliography. More to follow. Go to the —>> read more –>>

Use of the word inequality hides the real issues.

monopoly, antitrust, trust, economy, US economy, Zephyr Teachout, Break’em Up, competitive markets, monopoly market, economic concentration, big tech, chickenization

If you are struggling to get your head around how racism works you will probably find it helpful to have a general framework as a guide. This one hour lecture from 2017 features an overview by Brown University Professor Tricia Rose of the structure of racism and how it works in the US (approx. 29 minutes). Then follows a case study by Samuel Rosen, senior researcher, How Structural Racism Works Project at Brown, of how —>> read more –>>

Tightrope provides a well-written description of the American crisis through personal stories and hard data. Unfortunately it falls flat in its call for action.

The rich and corporations win even during a global pandemic.

Perhaps the ceaseless clamoring for our attention by marketers is reaching its final stage of saturation in which our brains simply shut down and go on attention strike.

Essay explores the grim reality of life in one small corner of America within the broader landscape of the bottom 90%.

In an area with dozens of empty store fronts and several hundred thousand sq ft of empty space, a new strip mall is approved for construction. A rational market??

Nobel Prize winners Duflo and Bannerjee take on idealized views of markets. They target the role of financial incentives, markets as self-correcting, efficient and ethically sound.

The Visual Capitalist added another graphic example of the increasing concentration, monopolization, of markets, in this case for groceries. Even here in Hudson NY we can see the impact of Walmart locally. Two years ago we had three large supermarkets within 4 miles. Price Chopper gave up the ghost leaving us with two, Walmart and ShopRite. While it’s more likely for a small town to become dominated by a single grocer, Walmart’s clout isn’t exclusive —>> read more –>>
Footnotes
- Routley, Nick. “Visualizing Walmart’s Domination of the U.S. Grocery Market.” Visual Capitalist. Accessed November 21, 2019. https://www.visualcapitalist.com/walmart-grocery-market-concentration/.

Robert Reich is continuing his series of brief YouTube videos on progressive view of the economy. This is a good introduction to the arguments for re-invigorating our protections against monopolies. However, the problem is much more widespread than just the high tech industry. We’ve written about this broader phenomenon in The Monopolization of America. Here is one chart from that post. Dominance of Corporate Behemoths – NYTimes – 11/25/2108 The concentration of market power is —>> read more –>>

It’s Time to Break Up Facebook, by Chris Hughes, the co-founder of Facebook is very thorough in describing the current monopoly behavior of Facebook, the deleterious effects on competition and vigor in the economy of monopolies, and a great introduction to the history of anti-trust movements and legislation in the US.

Robert Reich provides us with an accessible, brief analysis of why the rich and corporations are feasting while the rest of us experience the rigors, oppression, and discipline of the capitalist marketplace. Only a bit over 4 minutes long.

The Dalio Critique of Capitalism – Part One Ray Dalio, number 79 on Bloomberg’s list of the 100 wealthiest people on the planet with a net worth of 18+ billion $s, published an essay on LinkedIn, “Why and How Capitalism Needs to Be Reformed (Parts 1 & 2)” is US centric and its critique of capitalism focuses on: income and wealth inequality lack of income growth for the majority of Americans since the early 1980s —>> read more –>>
Footnotes
- Apologies for this term. Economists created this one and then left it almost universally out of any of their calculations.
- for example see the post here "Ultra-Processed Foods, Conquest of New Markets, Capitalism In Action"

In our continuing effort to find varied sources to illustrate the power of marketing and the costs of unregulated capitalism we return to John Oliver’s show Last Week Tonight for his segment on sugar in food. The food industry continues to put sugar in nearly every processed food and fights efforts to reveal how much of this dangerous additive is in each bite.

We have written earlier (for example our article The Monopolization of America) about the increasing concentration of market power In the hands of just a few corporations. This is a phenomenon occurring throughout the US economy (really more broadly across the globe). Here is an 11 minute review of the history and current state of monopolies in our economy.

“Women are almost half of the workforce. They are the sole or co-breadwinner in half of American families with children. They receive more college and graduate degrees than men. Yet, on average, women continue to earn considerably less than men. In 2017, female full-time, year-round workers made only 80.5 cents for every dollar earned by men, a gender wage gap of 20 percent.”

The nearly continuous puffing up of Silicon Valley, the construction of an enormous bio-pharma complex in Cambridge, and other examples of high tech ebullience are offered up by the mass media and the business press as evidence of a dynamic economy. The actual facts show a different story that should concern us. The US economy has been very lackluster in creating new companies, reinvesting profits in research and new capacity, and there has been a —>> read more –>>

Adam Smith discussed the harms caused by monopolies115 in the frequently, ritualistically cited book, The Wealth of Nations116. The progressive politics of the end of the 19th century and into the beginning of the 20th was marked by a deep reaction to the monopolistic practices of large companies then. This led to the ant-trust legislation that remains the cornerstone of the Federal government’s efforts to protect competition in the marketplace: Sherman Act of 1890, the —>> read more –>>
Footnotes
- A note about the term “monopoly”: Economists have long acknowledged that the literal meaning of monopoly, a company having exclusive control over a commodity or service, is not a useful representation of how capitalist economies actually work. In practice when a small number of firms, say 3 or 4, control roughly 50% or more of a market, they can and do act to control prices, restrain trade, and force weaker competitors out of the market. As John Oliver notes we can experience this by simply booking an airline flight. Southwest, Delta, United, and American control 69% of the domestic market. This concentration is amplified by the hub and spoke system that assures that in many localities there is no choice but a single provider of air services. This is precisely why we need to reinvigorate the existing anti-trust laws and protect consumers from the gouging and abuse we now experience every time we fly.
- Smith, Adam. An Inquiry into the Nature and Causes of the Wealth of Nations.
- chart borrowed from: Leonhardt, David. “Opinion | The Monopolization of America.” The New York Times, November 26, 2018, sec. Opinion. https://www.nytimes.com/2018/11/25/opinion/monopolies-in-the-us.html.

Corporate concentration of income and wealth are core features of capitalism. From its earliest cheerleaders like Adam Smith, the drive for corporations to get ever larger and in the doing drive their competitors out of the market was noted and warned against. John Oliver provides a thorough and amusing introduction.

The new digital economy is displaying the same drive to concentration, monopolies and oligopolies, that capitalism has always displayed. Facebook, Google, Amazon, Apple, and Microsoft are just a new face of the predatory monopolists of the Rockefeller Standard Oil age.

Shifts to contract work, losses in jobs due to automation and robots, growth in poorly paid occupations, low participation rates, healthcare and retirement tied to full-time jobs, and extremely unequal gains in income for the top 10% characterize jobs in our economy. Something radical needs to be done. Republicans are trickling, Democrats cautious, neither addresses the big changes underway.

UPDATE: IBM does blockchain….Cryptocurrencies and blockchain technologies are subject to the same control by the rich and corporations as our existing financial and business sectors. These technologies are embedded in the socio-economic structures of capitalism. Concentrations of power dominate the existing capitalist world and they will dominate these new “disruptive” technology entrants.

A Note on Jobs & Unemployment Original publication date – 12/27/2016; Revised – 12/31/2017 As the presidential campaign of 2016 fades away and the Trump Era begins, we find a national scene without any real discussion of the facts of jobs and unemployment and what the future might bring. Trump and others talk about bringing manufacturing back to the US. No plan, plausible or otherwise, has ever been mentioned for how to accomplish this. The —>> read more –>>
Footnotes
- To be sure the US rank amongst steel producers has declined significantly with most of the world's steel now being produced in Asia
- Allan Collard-Wexler and Jan De Loecker, “Reallocation and Technology: Evidence from the U.S. Steel Industry,” Working Paper National Bureau of Economic Research, January 2013, http://www.nber.org/papers/w18739.
- Jane Wakefield, “Foxconn Replaces ‘60,000 Factory Workers with Robots,’ BBC News, May 25, 2016, sec. Technology, http://www.bbc.com/news/technology-36376966
- Angel Gonzalez, “Amazon Unveils Smart Convenience Store sans Checkouts, Cashiers,” The Seattle Times, December 5, 2016, http://www.seattletimes.com/business/amazon/amazoncom-unveils-self-driving-brick-and-mortar-convenience-store/
- Brick and mortar retail stores have sales per employee between a 1/4 and a 1/3 of Amazon's performance.
- Thanks to Elizabeth Kolbert, “Our Automated Future,” The New Yorker, http://www.newyorker.com/magazine/2016/12/19/our-automated-future and Daron Acemoglu and David Autor, “Skills, Tasks and Technologies: Implications for Employment and Earnings,” Working Paper (National Bureau of Economic Research, June 2010), http://www.nber.org/papers/w16082.

At a time when the Republicans are transferring income and wealth to the rich and corporations over 40 million Americans fall below the official poverty line.

Republicans Create Bigger Deficits Then Blame The Entitled Poor. Cuts to social programs coming to fix the Republican created deficit problem.

Inequality in wealth and income is a continuing global crisis. The World Inequality Report 2018 defines the problem based on wealth ownership and the transfer of public wealth into private hands. Their are solutions but they require political organization and will.

Otto Budweiser beer delivery The shape of jobs in the US and around the world it’s changing rapidly. On 11/5/2017 NBC News reported: Self-driving trucks One year ago this week a truck rolled into history as it traveled from a Colorado brewing plant to a warehouse 120 miles away carrying 45,000 cans of Budweiser beer. The early morning run was done using a truck developed by a start-up called Otto, now an Uber subsidiary. Though there —>> read more –>>

We are hearing from Republicans that American corporate tax rates are the highest in the world. The tax rate on the books is in fact higher than most. But, the amount of taxes paid by American corporations is not. It is inline with other wealthy countries.

Trump and Republicans (and some Democrats) puff up the return of well-paid manufacturing jobs and toss about ideas that thirty years of globalization can be reversed by renegotiating NAFTA and other trade agreements. All the while one of the most important factors in the disappearance of jobs, automation and robots are taking away jobs in plain view. The implications for the future of jobs seems daunting to minimize the impacts. Our political system is completely —>> read more –>>
Footnotes
- Neiswanger, Robbie. “PHOTOS/VIDEO: Robots to Work in 50 Wal-Marts, Including Several in Arkansas.” Arkansas Online. Accessed October 30, 2017. http://www.arkansasonline.com/news/2017/oct/26/robots-to-work-in-50-wal-marts-20171026/.
- Santens, Scott. “The Real Story of Automation Beginning with One Simple Chart.” Medium (blog), October 24, 2017. https://medium.com/basic-income/the-real-story-of-automation-beginning-with-one-simple-chart-8b95f9bad71b.
- https://americandelusions.com/2016/12/27/a-note-on-jobs-unemployment/

Report from Economic Innovation Group shows that US economy is becoming less dynamic and more focused around a few geographic regions. Recovery from Great 2008-09 Recession accelerated this process.

The impact of globalization on the US economy has been mostly cast by the media and politicians in light of the disappearance of many manufacturing jobs and the swarms of cheap products imported to fill our stores. We should not think that just because we invented the internet and most of its prominent toys that hi-tech jobs are immune from the same search for low wages by corporate America. We need to remodel our thinking —>> read more –>>
Footnotes
- ”IBM Now Has More Employees in India Than in the U.S.” by Vinod Goel 9/28/2017 NYTimes. https://www.nytimes.com/2017/09/28/technology/ibm-india.html

It is widely known that the bottom 80% of the US population has been stuck in neutral or gone backwards in terms of income and wealth over the last 45 years. But even this woeful state of affairs is not distributed evenly across the country. A new analysis of the vitality of US communities by the Economic Innovation Group describes how 52 million (17% of the population) Americans live in “distressed” communities whose trajectories in terms —>> read more –>>
Footnotes
- “2017 Distressed Communities Index.” Economic Innovation Group. Accessed September 29, 2017. http://eig.org/dci.
- The report actually groups communities as follows: Prosperous, comfortable, mid-tier, at risk, and distressed.
- all data and graphs from the DCI report
- https://www.nytimes.com/2016/02/13/health/disparity-in-life-spans-of-the-rich-and-the-poor-is-growing.html?_r=0 By SABRINA TAVERNISE FEB. 12, 2016

Trickle-down economics has never worked, yet once again it is being used to justify tax cuts for the rich and corporations. Trump and Republicans are once again using this thoroughly debunked theory to justify tax cuts.

Capitalism, Monopoly, Oligopoly and John Oliver Capitalism does a number of things very well. Concentrating power, wealth and income is one of them. Though we naturally focus our attention on wealthy individuals, fat cats, tycoons, money bags, but corporations, the legal entities with personhood (at least in the US) are also recipients of this concentrating power. John Oliver in his HBO program “Last Week Tonight” took on monopoly and oligopoly. His focus on the airline —>> read more –>>

The American Society of Civil Engineers has released another of their series of infrastructure report cards. The 2017 report card shows a “D+”…….

In the US four airlines control over 80% of the seats and in many regional markets the competition veers towards a state of monopoly. There is simply no effective competitive controls on what the airlines can charge and under what conditions.This has lead to persistent high fares and a seemingly endless series of innovations in how many people can be jammed into a plane with as many extra charges tacked on for fewer and fewer —>> read more –>>

The title of this short book, only 130 pages, Building the New American Economy: smart, fair, & sustainable by Jeffrey D. Sachs with a foreword by Bernie Sanders (Columbia University Press, 2017) is unfortunately misleading. There is much here about the new economy. The misleading part is that there is very little about its construction, how to build the new economy. Sachs covers many important issues in a thorough, efficient fashion. If you need a —>> read more –>>

Ever since Ronald Reagan told us in his 1981 Inaugural Address, “Government is not the solution to our problem; government is the problem.” government bashing by right-wingers, Republicans and many Democrats has been a constant drumbeat of political rhetoric. Now we have Trump with his “Kill 2 regulations for every new one” and a government dominated by Republicans for whom destroying government has been an objective for decades. We are faced with the probable destruction —>> read more –>>
Footnotes
- audio of song here: https://youtu.be/VtW8RkI3-c4))
- (http://nfwm.org/education-center/farm-worker-issues/low-wages/

My friend Joe Keenan recently sent me an article by Vicki Boykis, “Fix the internet by writing good stuff and being nice to people” from her blog Woman.Legend.Blog. Today’s internet is mean. It’s hard to pinpoint exactly when everyone online became a jerk, but to me it seems that the tipping point occurred right when making money off content started being worth more than the content itself. Ms. Boykis devotes a lot of attention to —>> read more –>>
Footnotes
- https://www.emarketer.com/Article/Worldwide-Ad-Spending-Growth-Revised-Downward/1013858
- https://www.forbes.com/sites/robinlewis/2015/03/17/retail-in-2015-a-reality-check/#517594ca27ef

This 2013 article “How Much Money Would It Take to Eliminate Poverty” (http://prospect.org/article/how-much-money-would-it-take-eliminate-poverty-america) addresses this question. The answer then was $175 billion. This is a ridiculously small number in the context of a $16 trillion GDP. As someone who is on the homeowners gravy train I was stuck by this part of the article: “The utterly ridiculous tax expenditures directed toward the disproportionately affluent class of people called homeowners—mortgage interest deduction, property tax deduction, exclusion of —>> read more –>>

President Reagan was not the originator of this central trope of free-market (neo-liberal) politics, but he famously said in his first Inaugural Address in 1981, “Government is not the solution to our problem; government is the problem.” President Clinton, a Democrat, continued this theme during his terms culminating the the deregulation of the financial industry in 1999 setting the table for the collapse of 2008 and the Long Recession. Listening to almost any discussion by —>> read more –>>
Footnotes
- See Block, Fred L., and Matthew R. Keller. 2011. State of innovation: the U.S. government's role in technology development. Boulder, CO: Paradigm Publishers and Mazzucato, Mariana. 2011. The entrepreneurial state.
Park Avenue puts faces to many of the wealthy and the corporations. Do not for a moment think that if we could just rid ourselves of these avaricious individuals that our problems would be solved.

The values of capitalism, especially as expressed through free market (neoliberal) ideology, have come to dominate how we organize our lives. Silicon Valley and the tech sector is busy celebrating the “gig” economy. Companies have simply stopped hiring employees and now conduct much of their work using “temps”, “1099ers”, part-time contract workers. The companies, and the champions of free markets, tout this as a wonder of flexibility and opportunity. For gigers not being recognized as —>> read more –>>

The Rise and Fall of American Growth: the US standard of living since the Civil War by Robert J. Gordon ((Princeton U. Press. 2016)) is a weighty book in every regard. At 762 pages it is a heavy lift – not beach reading or even bed-time either. But I found it almost a page turner. It is very well structured and written. None of the fussiness or obscurantist language one often finds in academic works. The —>> read more –>>
Since the beginning of the 2008 Great Recession we have hoped that the government would return to applying some real rational restraints on the financial system. To be honest, with both political parties deep in the pocket of the industry, this is probably merely wishful thinking.

We should demand that our financial markets serve their findamental purposes – connect investors with those who can deploy those resources to create new products and services and enable the flow of these goods and services. To call holding financial insturments whether stocks, bonds, or other assets for mere seconds investments is to beggar the mind.

photo courtesy of Chance Agrella, photographer An article in the NY TImes today reports ((Regulators Examining Early Sales of Financial Data http://nyti.ms/12hDF3t )) that NY Attorney General Schneiderman is pursuing various information providers, Thomson Reuters in the immediate case, for their practices of selling market sensitive information preferntially. Those paying a premium get information several minutes before its release to the general public. This is more evidence that Wall St (standing in here for the —>> read more –>>

Reading this op ed leaves one with the notion that these changes have arisen through some immutable forces of nature. He fails to mention that in parallel with the individual being more and more alone in the world, big corporations and governments are becoming ever more well integrated, feeding at each others’ troughs.

For 99% of Americans the last forty years have been a period of income stagnation. As this chart from Mother Jones displays, virtually all of the productivity gains of the last forty years have ended up the hands of the super-rich. A new report from the National Employment Law Project, New Report: The Low-Wage Recovery and Growing Inequality (August 2012), details some of the changes in the economy that continue to drive this long-term hollowing —>> read more –>>

In recent years a standard bit of political rhetoric in the US has included references to “the job creators”. This most usually flows along the lines of higher taxes on the wealthy will injure the job creators. Or, government regulation is crushing the job creators. The presumption of course is that the wealthy, the 1% in the current rhetoric, create jobs (and those not created by the wealthy are created by small business – this being another, —>> read more –>>

A recent PBS Newshour report by Paul Solman on Thursday 3/15/12 in his series “Making Sense of Financial News” gave pause concerning the role of high frequency traders (HFT) on Wall St. (and doubtless on other markets around the world). First, you might ask what are HFTs? These are traders who use computer-based algorithms to select, buy, and sell shares on the markets. The speed of these transactions and the “thinking” that is performed is —>> read more –>>

Americans feel that government, at all levels, is sucking the life blood out of them through taxes and regulations. Lets just talk about the tax part of this perception. What are the facts of the tax burdens on Americans? How does our enormous military and security establishment and overseas empire fit into the picture? And, finally, do we need or want this empire and can we afford it? What options might we have to get —>> read more –>>

I came on a set of graphics in Mother Jones, “It’s the Inequality, Stupid: Eleven charts that explain what’s wrong with America” that illustrate what you probably already know. But, a simple refresher course in some of the reasons why the rich are rich. The 99% already have this base covered. Here are some of the charts I liked. Read the whole article at the Mother Jones website. Income (constant dollars) Note that if median family income had simply kept up —>> read more –>>

I ran across this somewhat longish article at NakedCapitalism.com. Even if you are not a 6th grader you will find this interesting. In part, Andrew Dittmer, who in fact has taught 6th graders, our author, points out that modern economics is based on certain assumptions that render much of the application of advanced mathematics in economics false, misleading, yet amazingly resistant to criticism by non-economists exactly because of the use of obscurantist fog of mathematics. One of these assumptions is that players in a —>> read more –>>

When it comes to job creation both Democrats and Republicans reflexively trot out small business as the engine of growth. These flights of breathy admiration for plucky small business owners are part of our national myth, right up there with cowboys. There probably is some truth in this myth as long as you accept the other side of the equation which includes the fact that jobs in small businesses are lower paying and less stable —>> read more –>>

The political rhetoric of the current moment, chiefly flowing from Republicans, but barely challenged by the Democrats, describes tales of profligate over-spending by the Federal government matched with burdensome taxation. While it is true that Federal spending is higher proportionately than post-WWII norms, social programs are not the source of this over spending. One only has to look back to George Bush’s two terms to see the true sources of the debt. War, Wars, More Wars —>> read more –>>

Submitted Today to Hudson’s Register Star Letter to the Editor May 6, 2011 As our politicians and the media continue the “debate” about our public budgets, Federal and state, we need to continue to ask that they have a debate that includes all aspects of income and expenditures. I want to focus here on our spending in the Dept. of Defense. Let’s just focus on the more than 750 military bases outside of the US —>> read more –>>

(This was submitted to the Letters to the Editor section of the Register Star here in Hudson. Not clear at the moment whether it will be published.) Discussions of the Federal budget almost never mention the defense department. Both political parties continue in the thrall of what President Eisenhower called the “military-industrial complex”. The defense budget is off limits. But, can we afford this military establishment? The US, with just 4.5% of the world’s population, supports almost 50% of the world’s —>> read more –>>

The case of the Federal Communications Commission v. AT&T ((See the NYTimes, “Court Weighs Whether Corporations Have Personal Privacy Rights” By ADAM LIPTAK Published: January 19, 201)) now being heard before the US Supreme Court raises anew the craziness of the thinking that has position corporations to be “persons” in the first place. Noun vs Adjective! First we have several of the justices focusing argument around the difference between “persons” and “personal”. But several justices —>> read more –>>

There is more evidence that the current run of religious mania about “free markets” is finally giving way to a more fact-based approach to this important human invention, many countries are now applying capital controls on the flow of monies into their economies. The world flood of money seeking higher rent districts is terrorizing smaller economies like a tsunami. Fears of speculative bubbles burgeoning and then bursting with disastrous consequences for local economies are driving many to control inflows. —>> read more –>>

The current tsunami of revelations of misbehavior, if not outright criminality, by the banking industry in their pursuit of mortgages gone bad, is further evidence of how fundamentally corrupt and cynical this industry continues to be. On the front end of this global economic disaster the financial system engaged in misleading sales tactics using financial products that were baroque in their complexities. Aided by governments seduced by the siren songs of free market religion and floods of money —>> read more –>>

The August 1st New York Times carries the latest Paul Krugman opinion piece, “Defining Prosperity Down”. He is depressed because it is dawning on him that the elite is in the process of redefining the level of structural unemployment that is normal to adjust to the significant likelihood that we will be living with 9%+unemployment on into the future. Where has Krugman been? He is old enough to remember that back in the 1960s structural —>> read more –>>

What Is the Function of Wall St.? The global financial meltdown of 2008 – 2009 with its ongoing sequelae seems not to have definitively demonstrated the dangers of our continuing belief in the religion of “free markets” nor shaken, especially it seems in the Obama administration, our thrall with Wall St. and all things financial. We are seeing the combined effects of Wall St.’s funding of the Democrats and Republicans, the primacy of Wall St-ers —>> read more –>>

Return to Creditor There is an interesting headline in today’s (1/25/10) New York Times, “Huge Housing Complex in N.Y. Returned to Creditors”. ((photo by Nicole Bengiveno/The New York Times – The Peter Cooper Village and Stuyvesant Town complex in 2006- borrowed without permission)) This article reports that Tishman Speyer Properties and BlackRock Realty defaulted (welched?) on their debt obligations of $3 billion for their 2006 purchase of the Stuyvesant Town/Peter Cooper Village in Manhattan for —>> read more –>>

This week’s decision by the US Supreme Court to allow corporations, including unions, to hold full rights to free speech and political action under the First Amendment to the Constitution once again reminds me of the strange practical and ethical relationship we have with corporations. In the 1886 ruling, Santa Clara County v. Southern Pacific Railroad Company1, the court reporter wrote in a summary: “The court does not wish to hear argument on the question —>> read more –>>

Anti-Wall St Does Not Mean Anti-Business President Obama’s proposals to break up the “too large to fail” mega banks and otherwise reapply the Glass Steagall Act to the financial sector has predictably brought loud complaints that this is populist and anti-business. Even the rhetoric of the reporters and expert talking heads reflects a general bias that anything that we might do to prevent a re-occurrence of last year’s global financial meltdown is anti-business. How Is —>> read more –>>

Manias, Panics, and Crashes: a history of financial crises, fourth edition by Charles P. Kindleberger (New York: Wiley 6th edition 2011) A recent Wall St Journal article described this book as a “must read” classic for anyone involved in financial markets. I have been involved directly in financial markets in two ways recently. First, I spent a year chasing around chasing angel investors and venture capitalists during the DotCom boom to fund Valuedge (the software company —>> read more –>>

January 23, 2002 (revised 1/29/02) The collapse of energy giant Enron over the last six months has produced a surprising level of outrage especially for a cynic like me. As this drama continues to unfold, I have been trying to understand how Enron structured their business and made money. Until just last night I was operating on the belief that the cleverness and sophistication of Enron’s managers simply outstripped my analytical skills. But, as I —>> read more –>>
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