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		<title>Trump is the kinglike president many feared when arguing over the US Constitution in 1789 – and his address to Congress showed it</title>
		<link>https://fixcapitalism.com/trump-is-the-kinglike-president-many-feared-when-arguing-over-the-us-constitution-in-1789-and-his-address-to-congress-showed-it/</link>
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		<pubDate>Wed, 05 Mar 2025 17:37:42 +0000</pubDate>
		<dc:creator><![CDATA[Christian Sarkar]]></dc:creator>
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		<description><![CDATA[BY Maurizio Valsania, Università di Torino If there are any limits to a president’s power, it wasn’t evident from Donald Trump’s speech before a joint session of Congress on March 4, 2025. In that speech, the first before lawmakers of Trump’s second term, the president declared vast accomplishments during the brief six weeks of his presidency. &#8230; <a href="https://fixcapitalism.com/trump-is-the-kinglike-president-many-feared-when-arguing-over-the-us-constitution-in-1789-and-his-address-to-congress-showed-it/" class="more-link">Continue reading <span class="screen-reader-text">Trump is the kinglike president many feared when arguing over the US Constitution in 1789 – and his address to Congress showed it</span></a>]]></description>
				<content:encoded><![CDATA[<div class="theconversation-article-body">
<figure>BY <a href="https://theconversation.com/profiles/maurizio-valsania-1098422">Maurizio Valsania</a>, <em><a href="https://theconversation.com/institutions/universita-di-torino-3231">Università di Torino</a></em></figure>
<p>If there are any limits to a president’s power, it wasn’t evident from Donald Trump’s speech before a joint session of Congress on March 4, 2025.</p>
<p><a href="https://www.cbsnews.com/live-updates/trump-2025-speech-joint-address-congress/">In that speech</a>, the first before lawmakers of Trump’s second term, the president declared vast accomplishments during the brief six weeks of his presidency. He claimed to have “brought back free speech” to the country. He declared that there were only two sexes, “male and female.” He reminded the audience that he had unilaterally renamed an international body of water as well as the country’s tallest mountain.</p>
<p>“Our country is on the verge of a comeback the likes of which the world has never witnessed, and perhaps will never witness again,” Trump asserted.</p>
<p>The extravagant claims appear to match Trump’s view of the presidency – <a href="https://theconversation.com/trumps-claims-of-vast-presidential-powers-run-up-against-article-2-of-the-constitution-and-exceed-previous-presidents-power-grabs-249662">one virtually kinglike in its unilateral power</a>.</p>
<p>It’s true that the U.S. Constitution’s crucial section about the executive branch, Article 2, does not grant the president <a href="https://theconversation.com/trumps-claims-of-vast-presidential-powers-run-up-against-article-2-of-the-constitution-and-exceed-previous-presidents-power-grabs-249662">unlimited power</a>. But it does make this figure the sole “<a href="https://constitution.congress.gov/constitution/article-2/">Commander in Chief of the Army and Navy</a> of the United States, and of the Militia of the several States.”</p>
<p>This <a href="https://www.cambridge.org/core/books/abs/transformations-of-the-state/monopoly-of-legitimate-force-denationalization-or-business-as-usual/3FC9EFB0869A9D2D54B47AD75BA5E291">monopoly on the use of force</a> is one way Trump could support his 2019 claim that he can do “<a href="https://www.washingtonpost.com/politics/2019/07/23/trump-falsely-tells-auditorium-full-teens-constitution-gives-him-right-do-whatever-i-want/">whatever I want as President</a>.”</p>
<p>Before Trump’s speech, protesters outside had taken issue with Trump’s wielding of such unchecked power. <a href="https://newsroom.ap.org/editorial-photos-videos/detail?itemid=c314c2103ab346a79fcd90c11f711001">One protester’s sign said</a>, “We the People don’t want false kings in our house.”</p>
<p>With those words, she echoed a concern about presidential power that originated more than 200 years ago.</p>
<figure class="align-center zoomable"><a href="https://images.theconversation.com/files/653110/original/file-20250305-56-il6xx8.jpg?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/653110/original/file-20250305-56-il6xx8.jpg?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/653110/original/file-20250305-56-il6xx8.jpg?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/653110/original/file-20250305-56-il6xx8.jpg?ixlib=rb-4.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/653110/original/file-20250305-56-il6xx8.jpg?ixlib=rb-4.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/653110/original/file-20250305-56-il6xx8.jpg?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/653110/original/file-20250305-56-il6xx8.jpg?ixlib=rb-4.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/653110/original/file-20250305-56-il6xx8.jpg?ixlib=rb-4.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=3 2262w" alt="A person outside holding a large sign that says 'We the People don't want false kings in our house.'" /></a><br />
<figcaption> <span class="caption">Many Americans, including these protesting in Washington, D.C. on March 4, 2024, have long resisted the idea of the president as a king.</span><br />
<span class="attribution"><a class="source" href="https://newsroom.ap.org/detail/TrumpProtests/c314c2103ab346a79fcd90c11f711001/photo?Query=trump%20protest&amp;mediaType=photo&amp;sortBy=arrivaldatetime:desc&amp;dateRange=now-14d&amp;totalCount=134&amp;currentItemNo=16">AP Photo/Jose Luis Magana</a></span><br />
</figcaption>
</figure>
<h2>Remnants of the monarchy</h2>
<p>When the Constitution was written, many people – from those who drafted the document to those who read it – believed that endowing the president with such powers was dangerous.</p>
<p>Ratified after a lot of huffing and puffing, on <a href="https://constitutioncenter.org/blog/the-day-the-constitution-was-ratified">May 29, 1790</a>, by rather nervous citizens, the text of the Constitution had stirred many controversies.</p>
<p>It wasn’t just the oftentimes vague language, which includes head-scratchers such as the very preamble, “<a href="https://constitutionalcommentary.lib.umn.edu/article/reconsidering-the-constitutions-preamble-the-words-that-made-us-u-s/">We the People of the United States</a>.” Nor was the discomfort due solely to the document’s jarring brevity – at 4,543 words, the U.S. Constitution is the shortest written Constitution of any major nation in the world.</p>
<p>No, what made that document especially problematic, to borrow from <a href="https://www.britannica.com/biography/John-Adams-president-of-United-States">John Adams</a>, was that it provided for “<a href="https://founders.archives.gov/documents/Adams/06-20-02-0032">a monarchical Republick, or if you will a limited Monarchy</a>.”</p>
<p>Adams would eventually become <a href="https://millercenter.org/president/john-adams/key-events">the nation’s second president</a> in 1797. Even though he was a staunch supporter of the Constitution, he was honest enough to take a hard look over the political layout of the new nation. And what he found were remnants of the British monarchy and traces of a king whose unchecked abuses had led the Colonists to demand their independence in the first place.</p>
<p>“The Name of President,” Adams couldn’t help concluding in a letter to prominent <a href="https://heinonline.org/HOL/LandingPage?handle=hein.journals/milrv22&amp;div=4&amp;id=&amp;page=">Massachusetts lawyer William Tudor</a>, “does not alter the Nature of his office nor diminish the Regal Authorities and Powers which <a href="https://founders.archives.gov/documents/Adams/06-20-02-0032">appear clearly in the Writing</a>.”</p>
<figure class="align-center "><img src="https://images.theconversation.com/files/652771/original/file-20250303-38-4e4tvd.jpg?ixlib=rb-4.1.0&amp;rect=0%2C0%2C5541%2C3946&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/652771/original/file-20250303-38-4e4tvd.jpg?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=427&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/652771/original/file-20250303-38-4e4tvd.jpg?ixlib=rb-4.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=427&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/652771/original/file-20250303-38-4e4tvd.jpg?ixlib=rb-4.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=427&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/652771/original/file-20250303-38-4e4tvd.jpg?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=537&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/652771/original/file-20250303-38-4e4tvd.jpg?ixlib=rb-4.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=537&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/652771/original/file-20250303-38-4e4tvd.jpg?ixlib=rb-4.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=537&amp;fit=crop&amp;dpr=3 2262w" alt="Four men in antique jackets, waistcoats and breeches, at a table covered with papers." /><br />
<figcaption> <span class="caption">John Adams, left, one of four founders pictured here, was concerned that the Constitution gave the president ‘Regal Authorities and Powers.’</span><br />
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/illustration-of-four-of-the-united-states-foundign-fathers-news-photo/145890547?adppopup=true">Stock Montage/Archive photos, Getty Images</a></span><br />
</figcaption>
</figure>
<p>While Adams was only somewhat uncomfortable, <a href="https://unito.academia.edu/MaurizioValsania">as a historian of the early republic</a> I can stress that other observers at the time <a href="https://constitutioncenter.org/education/classroom-resource-library/classroom/5.3-info-brief-the-anti-federalists">were downright appalled</a>.</p>
<p>In a 1787 article published in the Philadelphia Independent Gazetteer, “An Old Whig” – identity unknown – wrote, “The office of President of the United States appears to me to be clothed with <a href="https://teachingamericanhistory.org/document/an-old-whig-v/">such powers as are dangerous</a>.”</p>
<p>As the commander in chief of the Army, the American president “is in reality to be a king as much a King as the King of Great Britain, and a King too of the worst kind – an elective King.”</p>
<p>Consequently, as the author of this article resolved, “I shall despair of any happiness in the United States” until this office is “<a href="https://teachingamericanhistory.org/document/an-old-whig-v/">reduced to a lower pitch of power</a>.”</p>
<h2>‘Subjects of a military king’</h2>
<p>Concern over a commander in chief declaring martial law, <a href="https://www.brennancenter.org/our-work/research-reports/martial-law-united-states-its-meaning-its-history-and-why-president-cant">no matter the legality of the measure</a>, was similarly on the minds of the Americans who had read the Constitution.</p>
<p>In 1788, a patriot who went under the pseudonym of “Philadelphiensis” – real name, Benjamin Workman – issued a sweeping warning. Should the president decide to impose martial law, “your character of free citizens” would be “<a href="https://teachingamericanhistory.org/document/philadelphiensis-ix/">changed to that of the subjects of a military king</a>.”</p>
<p>A president turned military king could “wantonly inflict the most disgraceful punishment on a peaceable citizen,” the piece continued, “<a href="https://teachingamericanhistory.org/document/philadelphiensis-ix/">under pretence of disobedience, or the smallest neglect of militia duty</a>.”</p>
<figure class="align-left zoomable"><a href="https://images.theconversation.com/files/652774/original/file-20250303-32-9nrnjl.jpg?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/652774/original/file-20250303-32-9nrnjl.jpg?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=237&amp;fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/652774/original/file-20250303-32-9nrnjl.jpg?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=873&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/652774/original/file-20250303-32-9nrnjl.jpg?ixlib=rb-4.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=873&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/652774/original/file-20250303-32-9nrnjl.jpg?ixlib=rb-4.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=873&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/652774/original/file-20250303-32-9nrnjl.jpg?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=1098&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/652774/original/file-20250303-32-9nrnjl.jpg?ixlib=rb-4.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=1098&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/652774/original/file-20250303-32-9nrnjl.jpg?ixlib=rb-4.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=1098&amp;fit=crop&amp;dpr=3 2262w" alt="A man with long hair in the colonial style, with a white shirt and dark jacket." /></a><br />
<figcaption> <span class="caption">George Mason worried that giving the president pardon power would mean pardons granted to ‘prevent a discovery of his own guilt.’</span><br />
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/an-engraving-from-a-portrait-of-george-mason-an-american-news-photo/519416332?adppopup=true">New York Public Library, Smith Collection/Gado/Getty Images</a></span><br />
</figcaption>
</figure>
<p>Another power given to the president was also universally considered extremely dangerous: that of <a href="https://constitution.congress.gov/constitution/article-2/">granting pardons</a> to individuals guilty of treason.</p>
<p>Maryland Attorney General <a href="https://www.britannica.com/biography/Luther-Martin">Luther Martin</a> reasoned that the treason most likely to take place was “that in which the president himself might be engaged.” What the president would do, Martin wrote, would be “to secure from punishment the creatures of his ambition, the associates and abettors of his treasonable practices, <a href="https://teachingamericanhistory.org/document/genuine-information-ix/">by granting them pardons</a>.”</p>
<p><a href="https://www.britannica.com/biography/George-Mason">George Mason</a>, who participated in the Constitutional Convention and also drafted Virginia’s state Constitution, foresaw a gloomy scenario. He shivered at the idea of a president who would “screen from punishment those whom he had secretly instigated to commit the crime, and thereby <a href="https://teachingamericanhistory.org/resource/masons-objections/#:%7E:text=The%20President%20of%20the%20United%20States%20has%20the%20unrestrained%20power,discovery%20of%20his%20own%20guilt.">prevent a discovery of his own guilt</a>.”</p>
<h2>Choosing ‘villains or fools’</h2>
<p>The framers did limit executive power in one significant way: The president of the United States is subject to impeachment and, upon conviction of treason or other high crimes, <a href="https://constitution.congress.gov/browse/essay/artII-S4-1/ALDE_00000282/">removal from office</a>.</p>
<p>But in the meantime, the president may enact irreparable damage.</p>
<p>The Constitution was finally ratified – <a href="https://www.latimes.com/opinion/story/2024-08-23/constitution-undemocratic-amendments-rewrite">but only begrudgingly</a> by the American citizens, who feared a president’s abuse of power. More persuasive than the legal restraints placed on the office, the belief that the people would choose their leader wisely tipped the scale toward approval.</p>
<p>Delegate <a href="https://www.britannica.com/biography/John-Dickinson">John Dickinson</a> asked a rhetorical question: “Will a virtuous and sensible people chuse <a href="https://teachingamericanhistory.org/document/fabius-ix/">villains or fools for their officers</a>?”</p>
<p>Also, 18th-century common sense deemed it improbable that a person without virtue and magnanimity would run for the nation’s highest office. Americans’ faith in their first president, the upstanding <a href="https://www.press.jhu.edu/books/title/12786/first-among-men">George Washington</a>, helped convince them that all would end well and their Constitution would be sufficient to protect the republic.</p>
<p>The Federalist Papers, <a href="https://www.britannica.com/topic/Federalist-papers">the 85 essays</a> written to persuade voters to support ratification, were suffused with this optimism.</p>
<p>People “of the character marked out for that of the President of the United States” were widely available, said the <a href="https://avalon.law.yale.edu/18th_century/fed67.asp">Federalist #67</a>.</p>
<p>“It will not be too strong to say,” reads <a href="https://avalon.law.yale.edu/18th_century/fed68.asp">Federalist #68</a>, “that there will be a constant probability of seeing the station filled by characters pre-eminent for ability and virtue.”</p>
<figure class="align-center zoomable"><a href="https://images.theconversation.com/files/653002/original/file-20250304-56-qwuj2p.jpg?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/653002/original/file-20250304-56-qwuj2p.jpg?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/653002/original/file-20250304-56-qwuj2p.jpg?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=600&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/653002/original/file-20250304-56-qwuj2p.jpg?ixlib=rb-4.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=600&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/653002/original/file-20250304-56-qwuj2p.jpg?ixlib=rb-4.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=600&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/653002/original/file-20250304-56-qwuj2p.jpg?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=754&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/653002/original/file-20250304-56-qwuj2p.jpg?ixlib=rb-4.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=754&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/653002/original/file-20250304-56-qwuj2p.jpg?ixlib=rb-4.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=754&amp;fit=crop&amp;dpr=3 2262w" alt="A much-yellowed copy of a colonial newspaper page." /></a><br />
<figcaption> <span class="caption">In the Nov. 1, 1787, edition of The Independent Gazetteer, one reader wrote, ‘The office of President of the United States appears to me to be clothed with such powers as are dangerous.’</span><br />
<span class="attribution"><a class="source" href="https://www.consource.org/document/an-old-whig-v-1787-11-1/">ConSource</a></span><br />
</figcaption>
</figure>
<h2>Government of laws?</h2>
<p>Adams wasn’t so optimistic. He wavered. And then he flipped the issue on its head.</p>
<p>“There must be a positive Passion for the public good … established in the Minds of the People,” he had written in a 1776 letter, “or <a href="https://founders.archives.gov/documents/Adams/06-04-02-0044">there can be no Republican Government, nor any real liberty</a>.”</p>
<p>After almost 250 years of uninterrupted republican life, Americans are used to thinking that their nation is secured by <a href="https://constitution.congress.gov/browse/essay/artI-S1-3-1/ALDE_00013290/">checks and balances</a>. As Adams kept repeating, America aims at becoming “<a href="https://founders.archives.gov/?q=%22of%20laws%2C%20and%20not%20of%20men%22&amp;s=1111311111&amp;sa=&amp;r=1&amp;sr=">a government of laws, and not of men</a>.”</p>
<p>Americans, in other words, have long believed it is their institutions that make the nation. But the opposite is true: The people are the soul and the conscience of the republic.</p>
<p>Everything, in the end, boils down to the character of these people and the control they assert over who becomes their most important leader.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/251294/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p>
<p><a href="https://theconversation.com/profiles/maurizio-valsania-1098422">Maurizio Valsania</a>, Professor of American History, <em><a href="https://theconversation.com/institutions/universita-di-torino-3231">Università di Torino</a></em></p>
<p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/trump-is-the-kinglike-president-many-feared-when-arguing-over-the-us-constitution-in-1789-and-his-address-to-congress-showed-it-251294">original article</a>.</em></p>
<p><em>IMAGE: President Donald Trump addresses a joint session of Congress at the U.S. Capitol on March 4, 2025. <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/president-donald-trump-addresses-a-joint-session-of-news-photo/2203344289?adppopup=true">Chip Somodevilla/Getty Images</a></span></em></p>
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		<title>The Kakistocracy: Exposing Trump&#8217;s Hypocrisy and the GOP’s War on DEI</title>
		<link>https://fixcapitalism.com/the-kakistocracy-exposing-trumps-hypocrisy-and-the-gops-war-on-dei/</link>
		<comments>https://fixcapitalism.com/the-kakistocracy-exposing-trumps-hypocrisy-and-the-gops-war-on-dei/#comments</comments>
		<pubDate>Fri, 31 Jan 2025 10:18:19 +0000</pubDate>
		<dc:creator><![CDATA[Christian Sarkar]]></dc:creator>
				<category><![CDATA[Corruption]]></category>
		<category><![CDATA[DEI]]></category>
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		<guid isPermaLink="false">http://fixcapitalism.com/?p=1589</guid>
		<description><![CDATA[BY CHRISTIAN SARKAR Trump 2.0 can be described as a kakistocracy – a state or society governed by its least suitable or competent citizens. Let&#8217;s process that. Donald Trump and the Republican Party have made dismantling Diversity, Equity, and Inclusion (DEI) initiatives a core part of their political platform, claiming these programs undermine merit and lower standards. Yet, &#8230; <a href="https://fixcapitalism.com/the-kakistocracy-exposing-trumps-hypocrisy-and-the-gops-war-on-dei/" class="more-link">Continue reading <span class="screen-reader-text">The Kakistocracy: Exposing Trump&#8217;s Hypocrisy and the GOP’s War on DEI</span></a>]]></description>
				<content:encoded><![CDATA[<p data-pm-slice="1 1 []">BY CHRISTIAN SARKAR</p>
<p data-pm-slice="1 1 []">Trump 2.0 can be described as a<strong> kakistocracy </strong><b>–</b><em> a state or society governed by its least suitable or competent citizens.</em></p>
<p data-pm-slice="1 1 []">Let&#8217;s process that.</p>
<p>Donald Trump and the Republican Party have made dismantling <strong>Diversity, Equity, and Inclusion (DEI)</strong> initiatives a core part of their political platform, claiming these programs <strong>undermine merit</strong> and <strong>lower standards</strong>. Yet, when it comes to their own appointments, qualifications and competence take a backseat to blind loyalty and political convenience. WTF?</p>
<p>The contradiction couldn’t be clearer: <strong>while they rail against DEI as a threat to excellence, they openly embrace mediocrity when it serves their own interests.</strong></p>
<p>Trump’s first term was a case study in this hypocrisy. He repeatedly filled key government positions with individuals who had no business being there. <strong>Betsy DeVos</strong>, a billionaire donor with no experience in public education, was put in charge of the Department of Education.<strong> Rick Perry</strong>, who once pledged to eliminate the Department of Energy, was placed in charge of it—only to later admit he didn’t fully understand its function. <strong>Ben Carson</strong>, a neurosurgeon with no background in housing policy, was appointed to lead the Department of Housing and Urban Development.</p>
<p>The problem wasn’t just incompetence—it was an <strong>intentional disregard for expertise in favor of ideological alignment.</strong> Trump sought appointees who would be loyal to him personally, rather than those who had the knowledge and skills to effectively lead their respective departments. This trend continued in his judicial appointments, where qualifications took a backseat to political allegiance, resulting in the nomination of judges deemed unqualified by the American Bar Association.</p>
<p>Now, for Trump 2.0, his potential cabinet picks reveal the same troubling pattern:</p>
<ul data-spread="false">
<li><strong>Marco Rubio, Secretary of State</strong> – A career politician with no foreign policy leadership experience. Lacks deep diplomatic experience; more of a legislator than a negotiator.</li>
<li><strong>Kash Patel, F.B.I. Director</strong> &#8211; Has never served in a senior law enforcement position or led a large investigative agency.  Mr. Patel is a right-wing operative who has vowed to use the position to exact revenge on Mr. Trump’s adversaries.</li>
<li><strong>Pam Bondi, Attorney General</strong> – A former Florida attorney general with ties to Trump’s legal battles. Faced scrutiny for dropping a Trump University fraud investigation after receiving a $25,000 donation from Trump&#8217;s foundation.</li>
<li><strong>Pete Hegseth, Defense Secretary</strong> – A Fox News host with military experience but no Pentagon leadership background. Unlike past Defense Secretaries, he has never held a senior military or civilian leadership role in the Department of Defense.</li>
<li><strong>Kristi Noem, Homeland Security Secretary</strong> – A governor with no direct national security experience.</li>
<li><strong>Lori Chavez-DeRemer, Labor Secretary</strong> – A former congresswoman with limited labor policy experience.</li>
<li><strong>John Ratcliffe, CIA Director</strong> – A former congressman with a history of politicizing intelligence.</li>
<li><strong>Tulsi Gabbard, Director of National Intelligence</strong> – A former Democratic congresswoman with a controversial record on foreign policy.</li>
<li><strong>Mehmet Oz, Medicare and Medicaid Administrator</strong> – A TV doctor known for promoting dubious medical treatments.</li>
<li><strong>Lee Zeldin, EPA Administrator</strong> – A politician with a record of voting against environmental protections.</li>
<li><strong>Elise Stefanik, UN Ambassador</strong> – A Trump loyalist with little foreign policy experience.</li>
<li><strong>Robert F. Kennedy Jr., HHS Secretary</strong> – A vaccine skeptic with no public health credentials.</li>
<li><strong>Doug Burgum, Interior Secretary</strong> – A governor with strong fossil fuel industry ties.</li>
<li><strong>Doug Collins, Veterans Affairs Secretary</strong> – A former congressman with military chaplain experience but no VA leadership background.</li>
<li><strong>Scott Bessent, Treasury Secretary</strong> – A hedge fund billionaire with financial conflicts of interest.</li>
<li><strong>Brooke Rollins, Agriculture Secretary</strong> – A conservative think tank executive with no agricultural policy background.</li>
<li><strong>Howard Lutnick, Commerce Secretary</strong> – A Wall Street executive facing potential conflicts of interest.</li>
<li><strong>Sean Duffy, Transportation Secretary</strong> – A reality TV star turned congressman with no transportation policy experience.</li>
</ul>
<p>The lineup underscores the blatant hypocrisy at play. The GOP’s claim that DEI threatens meritocracy is a smokescreen for their real objective: consolidating power and rewarding loyalty over competence. If Republicans were truly concerned about merit, they would demand expertise in governance—not just fealty to Trump.</p>
<p>You got played, MAGA. You elected the Keystone cops &#8211; the gang that couldn&#8217;t shoot straight!</p>
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		<title>Who Will Win the U.S. Presidency in 2024?</title>
		<link>https://fixcapitalism.com/who-will-win-the-u-s-presidency-in-2024/</link>
		<comments>https://fixcapitalism.com/who-will-win-the-u-s-presidency-in-2024/#comments</comments>
		<pubDate>Fri, 27 Sep 2024 07:17:49 +0000</pubDate>
		<dc:creator><![CDATA[Christian Sarkar]]></dc:creator>
				<category><![CDATA[Business]]></category>
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		<category><![CDATA[Poverty]]></category>
		<category><![CDATA[Supreme Court]]></category>
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		<category><![CDATA[Violence]]></category>
		<category><![CDATA[War]]></category>

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		<description><![CDATA[BY PHILIP KOTLER and CHRISTIAN SARKAR Predicting the winner of a U.S. Presidential election is especially hard in this election year. The candidates are running close to 50-50 and voters are highly polarized. The two candidates have extremely different views of what is the Common Good. So we choose not to make a prediction. However, we &#8230; <a href="https://fixcapitalism.com/who-will-win-the-u-s-presidency-in-2024/" class="more-link">Continue reading <span class="screen-reader-text">Who Will Win the U.S. Presidency in 2024?</span></a>]]></description>
				<content:encoded><![CDATA[<p>BY PHILIP KOTLER and CHRISTIAN SARKAR</p>
<p>Predicting the winner of a U.S. Presidential election is especially hard in this election year. The candidates are running close to 50-50 and voters are highly polarized. The two candidates have extremely different views of what is the Common Good.</p>
<p>So we choose not to make a prediction.</p>
<p>However, we want to vote. If this was an election in Australia, we would have to vote or pay a fee for <em>not</em> voting.  Furthermore, we would have to rank our candidate preferences if there are three or more candidates.</p>
<p>But we are American citizens. Also, we are largely independent voters.  We aren&#8217;t one-issue voter although this would make it easy.  For example, what if we cared only about abortion and voted for the candidate who favors abortion rights for women. <strong>We really want to consider all the policy differences between the two candidates.  </strong></p>
<p>How can we do that?</p>
<p>Let&#8217;s imagine the economic, social and political outcomes that are likely to follow from each candidate being elected.</p>
<p>Our best step is to list the outcomes that we expect to follow with each candidate if elected. We stand ready to revise our views.  In fact, we invite you, the reader, to look at the two lists.  Feel free to add missing outcomes.</p>
<p>You can send your revised list to us &gt;&gt;  <em><strong>info</strong> (at)<strong> fixcapitalism </strong>dot<strong> com</strong> </em>&gt;&gt;</p>
<p>Here are our initial lists:</p>
<h2>What will happen if Trump wins the 2024 Presidency?</h2>
<ol>
<li>Economic chaos as higher prices result from Trump’s rising <a href="https://www.newsweek.com/mark-cuban-donald-trump-insane-tariff-threat-1958577">tariffs</a> and irrational trade policies</li>
<li>Cutbacks and/or <a href="https://www.cnn.com/2024/03/11/politics/trump-entitlements-social-security-medicare/index.html">elimination</a> of Social Security, Medicare, and the possible repeal of Obamacare</li>
<li>Social chaos with increased <a href="https://nul.org/news/violence-follows-every-time-yet-trump-and-vance-continue-trafficking-racist-lies-about">violence</a> towards minorities, workers, and union organizers</li>
<li>Political arrests targeting opponents (Trump has also said <a href="https://demandjustice.org/trump-calls-for-supreme-court-critics-to-be-jailed/">anyone criticizing the Supreme Court should be jailed</a>)</li>
<li>Government appointments not based on merit but ideology (existing government employees will be purged unless they are <a href="https://protectdemocracy.org/work/trumps-schedule-f-plan-explained/">loyal</a> to Trump)</li>
<li>Fewer dependable allies from abroad as <a href="https://www.cfr.org/councilofcouncils/global-memos/trump-and-nato-global-perspectives-2024-nato-summit-and-america">NATO</a>(and the EU) is abandoned; China becomes stronger as Taiwan is abandoned</li>
<li>Russian power increases as <a href="https://www.politico.eu/article/donald-trump-ukraine-russia-war-threatens-cut-aid-election-2024/">Ukraine is left to itself</a>; US pivots to possible war against Iran</li>
<li>Climate problems worsen &#8211; pollution <a href="https://www.theguardian.com/us-news/article/2024/may/09/trump-oil-ceo-donation">regulations are eliminated</a>; drilling allowed in National Parks</li>
<li>Polarization and hatred worsen as &#8220;<a href="https://en.wikipedia.org/wiki/Remigration">remigration</a>&#8221; and forced deportation is scaled up</li>
<li>Leadership focuses on <a href="https://newrepublic.com/post/185722/donald-trump-dictator-persecute-political-enemies">past grievances</a> &#8211; including personal vendettas against people who didn&#8217;t support Trump</li>
<li>Possibility of mental deterioration of Trump after election &#8211; leading to the installation of <a href="https://www.motherjones.com/politics/2024/09/theobros-jd-vance-christian-nationalism/">JD Vance</a> as President</li>
<li>Women <a href="https://www.plannedparenthoodaction.org/fight-for-birth-control/about">lose</a> their reproductive rights, and other civil rights as well</li>
<li>More <a href="https://www.americanprogress.org/article/permanently-extending-the-trump-tax-cuts-would-cost-4-trillion-over-the-next-decade/">tax cuts for the rich</a> and corporate interests, leading to further deficits (military programs to increase at the expense of everything else)</li>
<li>Increase in <a href="https://www.americanprogress.org/article/christian-nationalism-is-single-biggest-threat-to-americas-religious-freedom/">Christian Nationalism</a> and intolerance for other faiths</li>
<li>Implementation of <a href="https://www.aclu.org/project-2025-explained">Project 2025</a> and abandonment of constitutional boundaries</li>
</ol>
<h2>What will happen if Harris wins the Presidency?</h2>
<ol>
<li>Lower prices as Inflation continues to fall; corporate <a href="https://keystonenewsroom.com/2024/09/24/harris-trump-grocery-prices/">price-gouging</a> is dissuaded</li>
<li>Major job creation with new factories and new investments in <a href="https://www.euronews.com/green/2024/08/30/kamala-harris-vs-climate-where-she-stands-on-the-green-new-deal-fossil-fuels-and-pollution">renewable</a>technologies</li>
<li>Higher <a href="https://financialpost.com/financial-times/kamala-harris-rattles-tech-elite-tax-unrealized-gains">taxes on the super-rich</a> and corporate profits to support better health and education &#8211; this funds Social Security and eliminates austerity measures</li>
<li>Strong dependable allies abroad &#8211; <a href="https://www.reuters.com/world/us/kamala-harris-says-she-will-stand-with-ukraine-nato-allies-2024-08-23/">NATO</a> is supported to create a better, secure future</li>
<li>More progress in controlling climate problems &#8211; investment in <a href="https://www.enr.com/articles/59307-noting-elections-high-stakes-environmental-clean-energy-supporters-line-up-for-kamala-harris">renewables</a> and battery technologies</li>
<li>Her <a href="https://www.chathamhouse.org/2024/07/kamala-harris-would-bring-greater-foreign-policy-experience-most-new-us-presidents">international experience</a> will further peacemaking to reduce international disputes</li>
<li><a href="https://uupinfo.org/communications/uupdate/240912E.php">Union support</a> instead of opposition and more worker benefits including a higher minimum wage</li>
<li>Less polarization and more goodwill amongst the general population; opposition to the <a href="https://www.cnn.com/2023/07/21/politics/kamala-harris-florida-education/index.html">culture wars</a></li>
<li>Leadership is younger and <a href="https://www.diverseeducation.com/opinion/article/15683633/kamala-harris-excites-the-youth">motivating</a> for younger generations</li>
<li>Women&#8217;s rights are secured nationally and across states; <a href="https://www.vox.com/abortion/373133/kamala-harris-oprah-winfrey-michigan-amber-thurman-abortion-bans-democrats">abortion rights</a> are strengthened</li>
<li> Church and state are kept separate and America avoids a decline into Christian Nationalism by embracing a <a href="https://www.msnbc.com/opinion/msnbc-opinion/kamala-harris-christian-faith-religious-freedom-rcna163011">culture of respect</a></li>
<li> Increased <a href="https://apnews.com/article/biden-caribbean-government-and-politics-immigration-bc123e35d5ad17971efe0e6073e6321c">regional investments</a> in Latin America to encourage residents to remain in their home countries</li>
<li>Support for a <a href="https://www.pbs.org/newshour/politics/watch-harris-says-two-state-solution-end-of-israel-hamas-war-is-crucial">two-state solution</a> regarding Israel and Palestine</li>
<li>Support for  job-creation through small business and start-up <a href="https://www.taxnotes.com/featured-analysis/heres-how-harriss-standard-business-deduction-could-work/2024/09/20/7lm5y">incentives</a></li>
<li>Corporates and billionaires pay a <a href="https://finance.yahoo.com/news/billionaires-fuming-kamala-harris-unrealized-080000855.html">fairer share of taxes</a></li>
</ol>
<p>Does this comparison of likely outcomes help you choose your candidate?</p>
<p><strong>ASK:</strong> Which candidate is working for the Common Good? Which candiadte is working for the future wellbeing of our children?  Which candidate has demonstrated a commitment to justice?</p>
<p>May the best candidate win.</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<div id="m_5410141220969289639ydpe1632935yiv8030713208yqtfd38364"></div>
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		<title>Wealth Supremacy: How the Extractive Economy and the Biased Rules of Capitalism Drive Today’s Crises [Book Review]</title>
		<link>https://fixcapitalism.com/wealth-supremacy-how-the-extractive-economy-and-the-biased-rules-of-capitalism-drive-todays-crises-book-review/</link>
		<comments>https://fixcapitalism.com/wealth-supremacy-how-the-extractive-economy-and-the-biased-rules-of-capitalism-drive-todays-crises-book-review/#comments</comments>
		<pubDate>Tue, 19 Sep 2023 11:45:07 +0000</pubDate>
		<dc:creator><![CDATA[Christian Sarkar]]></dc:creator>
				<category><![CDATA[Books]]></category>
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		<guid isPermaLink="false">http://fixcapitalism.com/?p=1511</guid>
		<description><![CDATA[BY CHRISTIAN SARKAR Has capitalism taken us over the cliff? And why can&#8217;t we stop? Marjorie Kelly&#8216;s most recent book, Wealth Supremacy: How the Extractive Economy and the Biased Rules of Capitalism Drive Today’s Crises is one of the most important explanations of how wealth and power have created an unlivable world and sacrificed the future for &#8230; <a href="https://fixcapitalism.com/wealth-supremacy-how-the-extractive-economy-and-the-biased-rules-of-capitalism-drive-todays-crises-book-review/" class="more-link">Continue reading <span class="screen-reader-text">Wealth Supremacy: How the Extractive Economy and the Biased Rules of Capitalism Drive Today’s Crises [Book Review]</span></a>]]></description>
				<content:encoded><![CDATA[<p>BY CHRISTIAN SARKAR</p>
<p>Has capitalism taken us over the cliff? And <strong>why</strong> <strong>can&#8217;t we stop</strong>?</p>
<p><strong>Marjorie Kelly</strong>&#8216;s most recent book, <em><a href="https://www.amazon.com/Wealth-Supremacy-Extractive-Economy-Capitalism-ebook/dp/B0C6S7P2LD/ref=onewwworld">Wealth Supremacy: How the Extractive Economy and the Biased Rules of Capitalism Drive Today’s Crises</a></em> is one of the most important explanations of <strong>how wealth and power have created an unlivable world</strong> and <em>sacrificed the future</em> for the greed of a few.<a href="https://www.amazon.com/Wealth-Supremacy-Extractive-Economy-Capitalism-ebook/dp/B0C6S7P2LD/ref=onewwworld"><img class="alignright  wp-image-1518" src="http://fixcapitalism.com/wp-content/uploads/2023/09/wealthsupremacybook.jpg" alt="wealthsupremacybook" width="274" height="405" /></a></p>
<p>Why aren&#8217;t the SDGs working? Why can&#8217;t our politicians do the right thing?</p>
<p>The first answer: <strong>wealth supremacy.</strong></p>
<p><strong>Wealth supremacy</strong> is defined as <em><strong>the cultural and political processes and attitudes by which persons of wealth accumulate and maintain prestige, privileges, and power that others lack.</strong> </em></p>
<p>The impact of wealth supremacy is everywhere.  Kelly explains:</p>
<p><em>It&#8217;s about status, in a culture where the wealthy are revered as the possessors of godlike powers. It&#8217;s about influence, including the power to control philanthropy. It&#8217;s about political and legal power-including the power to finance candidates, to influence lawmaking through lobbying, and to escape the justice system that ensnares those without wealth.<br />
</em></p>
<pre><em>(And, in case you were wondering, Kelly shows us the link between wealth supremacy and white supremacy).</em></pre>
<p>The second answer: <strong>capital bias</strong>.</p>
<p><strong>Capital bias</strong> is defined as <em>the idea of making as much money as possible</em>, which primarily benefits those who are already wealthy.</p>
<p>Kelly explains that this bias is present in the systems and institutions that allow money to wield significant influence. Capital represents the active side of wealth. It&#8217;s the money that&#8217;s expected to keep growing endlessly. Capital is what drives wealth, and it does this through various means like making profits, setting the rules of accounting, and blurring the line between speculation and investment.</p>
<p>When you put <strong>wealth supremacy</strong> and <strong>capital bias</strong> together, you have the &#8220;DNA of our capital-centric economic system.&#8221; These intertwined biases shape how the system operates, grows, and sustains itself. The goal is to keep the rich at the top, safe and comfortable, and capital bias is the way they achieve this. <em>Capital bias is the essence of the system, and this system is what we call capitalism.</em></p>
<p><a href="http://fixcapitalism.com/wp-content/uploads/2023/09/wealthsupremacy.jpg"><img class="alignright  wp-image-1521" src="http://fixcapitalism.com/wp-content/uploads/2023/09/wealthsupremacy.jpg" alt="wealthsupremacy" width="761" height="528" /></a></p>
<h2>The Root Cause of the Polycrisis</h2>
<p>Kelly shows us that systemic wealth extraction has become &#8220;the deep force sapping the resilience of our society, driving, exacerbating, or profiting from the largest crises of our day.&#8221;</p>
<p>The interconnected world of systemic risks&#8211;climate change, biodiversity loss, deepening inequality, and rising authoritarianism are converging into what&#8217;s being called a <strong>polycrisis.</strong>  Kelly explains that while <strong>ecological overshoot</strong> is one root cause of the polycrisis, equally implicated is <strong>financial overshoot</strong>: the accumulation of too much financial wealth, even as the system remains intent on a limitless more. <em>US financial assets are <strong>five times</strong> the size of GDP, a ballooning since the 1950s, when assets and GDP were roughly equal in size.</em></p>
<p>Kelly spells out the connections:</p>
<p><em>The long rise of irresponsible consumption has been driven by the corporate drive to maximize profits. Our efforts to tackle climate change have been blocked by the misdirection of fossil fuel companies and the capture of politics by monied interests.</em></p>
<p><em>As a global food crisis has unfolded, corporations have been out there using inflation to hide outsized price increases.? The white working class, left adrift by the loss of good jobs, finds its anger misdirected into racial and misogynistic hatred by the conservative forces determined to retain or reinstate the social order governed by wealth, by men, by whites.</em></p>
<p><em>Many of us don&#8217;t fully grasp how the complex, obscure, mathematical rules and norms of our extractive system lie behind these crises. It&#8217;s rarely explained to us how expanding pools of great wealth create and rely upon the precarity and indebtedness of the rest of us. Instead, our culture tends to view &#8220;wealth creation&#8221; as benign and wonderful. This bias toward wealth makes it difficult for us to digest the warnings of economists that the world is awash in far too much financial capital, just as the atmosphere is awash in too much carbon.</em></p>
<h2>Naming the Disease that Ails Us</h2>
<p>Kelly&#8217;s expose shows us the way out: the first step must be to <strong>name the disease</strong>, to in see <em>how wealth supremacy lies at the very core of our economic system</em>, and our <strong>mental map of reality</strong> itself.  The narratives we are taught perpetuate wealth supremacy &#8211; Kelly calls theme the <strong>myths of wealth supremacy</strong>.</p>
<p>The relentless <strong>financialization of everything</strong> leads to the decimation of workers, as capital drives labor income &#8211; and labor itself&#8211;out of the economy. She adds: <em>Even more frightening is how the hard right, fueled by plutocratic dark money, now seeks to eradicate democracy in its quest to keep powering the machine that supports &#8230; the &#8220;unseen ruling class.&#8221;</em></p>
<h2>The 7 Myths of Wealth Supremacy</h2>
<p>Kelly maps out the <strong>seven myths of wealth supremacy</strong>—the bias that institutionalizes <em>infinite extraction of wealth by and for the wealthy</em> and is the <em>hidden force</em> behind the polycrisis:</p>
<ol>
<li><strong><span class="a-text-italic">The Myth of Maximizing</span></strong>—No amount of wealth is ever enough.</li>
<li><span class="a-text-italic">The Myth of Fiduciary Duty</span>—Corporate managers&#8217; most sacred duty is to expand capital.</li>
<li><strong><span class="a-text-italic">The Myth of Corporate Governance</span></strong>—Corporate membership must be reserved for capital alone.</li>
<li><strong><span class="a-text-italic">The Myth of the Income Statement</span></strong>—Income to capital must always be increased, while income to labor must always be decreased.</li>
<li><strong><span class="a-text-italic">The Myth of Materiality</span></strong>—Profit—that is, material gain-alone is real, while social and environmental damages are not.</li>
<li><strong><span class="a-text-italic">The Myth of Takings</span></strong>—The first duty of government must be the protection of private property.</li>
<li><strong><span class="a-text-italic">The Myth of the Free Market</span></strong>—There should be no limits on the sphere of influence of corporations and capital.</li>
</ol>
<p>Kelly&#8217;s explanation of how these myths block us from doing the right thing for the future is a tremendous contribution to the growing debate around <a href="https://www.regenerationjournal.org/what-is-regeneration/">regeneration</a>, and a <em>regenerative economy</em>.  Kelly and Ted Howard defined the <strong>democratic economy</strong> in their book <em>The Making of a Democratic Economy</em>:</p>
<p><strong>A democratic economy is an economy of the people, by the people, and for the people. It&#8217;s an economy that, in its fundamental design, aims to meet the essential needs of all of us, balance human consumption with the regenerative capacity of the earth, respond to the voices and concerns of regular people, and share prosperity without regard to race, gender, national origin, or wealth. At the core of a democratic economy is the C<em>ommon Good</em>, in keeping with the founding aims of democracy in politics.</strong></p>
<h2>The Steps towards a Democratic Economy</h2>
<p>SO what must be done?  Kelly offers a blueprint for the shift we need:</p>
<ol>
<li><strong>Breaking the Trance:</strong> We Participate in System Change<br />
When We Change Our Minds</li>
<li><strong>Pranks, New Naming, and Other Subversive Acts:</strong> Helping Others to Awaken</li>
<li><strong>The Democratic Economy:</strong> Imagining Its Design, Seeing Its Models Demonstrated</li>
<li><strong>Democratizing Finance:</strong> Pathways Toward a Next System of Capital</li>
<li><strong>Beginning Where You Live:</strong> Building Community Wealth</li>
</ol>
<p>Each of these steps is explored <em>in detail</em> in her magnificent book!</p>
<p>I&#8217;m especially struck by Kelly&#8217;s clear explanation of the differing visions we see in the politics of our time, not just in the US.  Here&#8217;s Kelly again:</p>
<p>&#8220;In the <strong>economic world</strong> envisioned by <strong>neoliberals</strong>, the <strong>rights-bearing citizens are corporations and investors</strong>. <strong>Democracy</strong> is about <strong>protecting human rights</strong> <em>and</em> the <strong>rights of nature</strong>.&#8221;</p>
<p><em>Which one do you choose?</em></p>
<h2>Repurposing the Corporation</h2>
<p>In our <a href="https://regenmarketing.org/book/">book</a> on regeneration, we argue that the corporation is obsolete. Kelly agrees. Here&#8217;s her take on what needs to happen:</p>
<p><em>The challenge is to envision, and create, private enterprises and investing processes that remove capital bias. Enterprises may still be profit making; that&#8217;s an imperative of staying in business. What is dangerous, &#8230; is the unfettered aim of profit maximizing.</em></p>
<p>There&#8217;s much, much more.  We&#8217;re running out of time, and Kelly&#8217;s timely book is a force for the change we so desperately need.</p>
<h2>About Marjorie Kelly</h2>
<p><strong>Marjorie Kelly</strong> is a Distinguished Senior Fellow with <strong>The Democracy Collaborative</strong> and has authored several books before this one, including <em><a href="https://www.amazon.com/Making-Democratic-Economy-Building-Prosperity-ebook/dp/B07PJ51BCN/ref=onewwworld">The Making of a Democratic Economy</a></em> with Ted Howard, <em><a href="https://www.amazon.com/Owning-Our-Future-Ownership-Revolution-ebook/dp/B00822JCN4/ref=onewwworld">Owning Our Future: The Emerging Ownership Revolution</a></em>, and <em>The Divine Right of Capital: Dethroning the Corporate Aristocracy</em></p>
<p>Kelly argues instead for the democratization of ownership: public ownership of vital services, worker-owned businesses, and more. And she sketches the outlines of a nonextractive capitalism that would be subordinate to the public interest. This is an ambitious reimagining of the very foundations of our economy and society.</p>
<p>Kelly and her colleagues at The Democracy Collaborative played a pivotal role in advising and designing the launch of the Fund for Employee Ownership, now hosted at the Evergreen Cooperatives in Cleveland. Originally consisting of a network of three worker-owned firms, the fund has expanded to include four new firms through conversions. Additionally, Kelly co-authored research on the role of capital in scaling up employee ownership and conducted research and convening on the model of 50 employee-owned firms that are also B Corporations, which she terms &#8220;next-generation enterprises.&#8221; Jay Coen Gilbert credits Kelly with inspiring the creation of the B Movement of B Corporations through her book &#8220;The Divine Right of Capital.&#8221; Prior to her current role, she served as a Fellow at the Tellus Institute and co-founded and served as president of <em>Business</em> <em>Ethics</em> magazine.</p>
<p><strong>GET the BOOK</strong> &gt;&gt; <em><a href="https://www.amazon.com/Wealth-Supremacy-Extractive-Economy-Capitalism-ebook/dp/B0C6S7P2LD/ref=onewwworld">Wealth Supremacy: How the Extractive Economy and the Biased Rules of Capitalism Drive Today’s Crises</a></em></p>
<p><a href="http://christiansarkar.com">Christian Sarkar</a> is the co-author (with Philip Kotler and Enrico Foglia) of <em><a href="https://regenmarketing.org/book/">REGENERATION: The Future of Community in a Permacrisis World</a></em> &#8211; IDEA BITE PRESS (May, 2023)</p>
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		<title>Why Billionaires Hate Social Security</title>
		<link>https://fixcapitalism.com/why-billionaires-hate-social-security/</link>
		<comments>https://fixcapitalism.com/why-billionaires-hate-social-security/#comments</comments>
		<pubDate>Fri, 09 Jun 2023 16:01:05 +0000</pubDate>
		<dc:creator><![CDATA[Christian Sarkar]]></dc:creator>
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		<description><![CDATA[BY RICHARD ESKOW The real goal of billionaire-funded Social Security rhetoric is to prevent the public from drawing a connection between Social Security’s finances, the working-class retirement crisis, and the ludicrous amounts of wealth held by America’s billionaires. Consider the billionaire. I’m not talking about people who were born into wealth; they have their own issues. &#8230; <a href="https://fixcapitalism.com/why-billionaires-hate-social-security/" class="more-link">Continue reading <span class="screen-reader-text">Why Billionaires Hate Social Security</span></a>]]></description>
				<content:encoded><![CDATA[<p>BY <a href="https://www.commondreams.org/author/richard-eskow" data-type="text">RICHARD ESKOW</a></p>
<p><em>The real goal of billionaire-funded Social Security rhetoric is to prevent the public from drawing a connection between Social Security’s finances, the working-class retirement crisis, and the ludicrous amounts of wealth held by America’s billionaires.</em></p>
<p>Consider the billionaire.</p>
<p>I’m not talking about people who were born into wealth; they have <a class="rm-stats-tracked" href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1950124/" target="_blank" rel="noopener noreferrer">their own issues</a>. Let us specifically consider the so-called “self-made” wealthy person, the driven CEO or investor. He (and it is almost always a “he” in our society) is likely to share some characteristics with other billionaires and members of his cohort. Social science and simple observation tell us that these powerful figures are more likely than other people to be:</p>
<p>●<a class="rm-stats-tracked" href="https://greatergood.berkeley.edu/article/item/affluent_people_more_likely_to_be_scofflaws" target="_blank" rel="noopener noreferrer">greedy</a></p>
<p>●<a class="rm-stats-tracked" href="https://www.huffpost.com/entry/money-addiction_b_221937" target="_blank" rel="noopener noreferrer">addicted</a> to making money (which is psychologically distinct from greed)</p>
<p>●obsessed with making money, which leads to <a class="rm-stats-tracked" href="https://www.huffpost.com/entry/money-addiction_b_221937" target="_blank" rel="noopener noreferrer">bad behavior</a></p>
<p>●surprisingly <a class="rm-stats-tracked" href="https://www.theatlantic.com/magazine/archive/2011/04/secret-fears-of-the-super-rich/308419/" target="_blank" rel="noopener noreferrer">worried about the money</a> they have</p>
<p>●<a class="rm-stats-tracked" href="https://nymag.com/news/features/money-brain-2012-7/" target="_blank" rel="noopener noreferrer">less empathetic</a> and more self-interested than other people</p>
<p>●breakers of certain <a class="rm-stats-tracked" href="https://greatergood.berkeley.edu/article/item/affluent_people_more_likely_to_be_scofflaws" target="_blank" rel="noopener noreferrer">laws and social norms</a></p>
<p>●<a class="rm-stats-tracked" href="https://greatergood.berkeley.edu/article/item/the_poor_give_more" target="_blank" rel="noopener noreferrer">less charitable</a> on a percentage basis</p>
<p>●<a class="rm-stats-tracked" href="https://www.cambridge.org/core/journals/perspectives-on-politics/article/testing-theories-of-american-politics-elites-interest-groups-and-average-citizens/62327F513959D0A304D4893B382B992B#article" target="_blank" rel="noopener noreferrer">very politically influential</a></p>
<p>●and, determined to cut Social Security.</p>
<p>About that last item: While there may be exceptions here and there, the billionaire class overall is overwhelmingly opposed to Social Security. Most wealthy people would, in fact, like to see its benefits slashed. A <a class="rm-stats-tracked" href="https://faculty.wcas.northwestern.edu/jnd260/cab/CAB2012%20-%20Page1.pdf" target="_blank" rel="noopener noreferrer">2013 study</a> compared the political opinions of the wealthy with those of voters as a whole and found “major disagreement” between the two groups regarding Social Security. Among all voters, there was a 46 percent gap in favor of expanding its benefits rather than cutting them. The wealthy had the opposite take; they favored cuts, rather than expansion, by a gap of 33 percent.</p>
<p class="pull-quote">The tax question surely accounts for some of the billionaires’ antipathy toward Social Security but, even so, their feelings seem to run unusually high on the subject.</p>
<p>Strikingly, the richer someone was, the likelier they were to want Social Security cuts. Each additional $10 million in personal wealth added measurably to the desire for Social Security cuts. The authors note that “this finding may help explain why cutting these popular programs has remained on the political agenda.”</p>
<p>Ya thinks?</p>
<p>Billionaires pay for think tanks and news outlets which fill the airways with lurid talk about the program’s costs. Billionaires and corporate CEOS have more political influence than any other part of society. That’s why, despite the outcome of the recent ‘debt ceiling’ crisis, they still represent an existential threat to Social Security.</p>
<h4>Distraction</h4>
<p>The real goal of billionaire-funded Social Security rhetoric is to prevent the public from drawing a connection between Social Security’s finances, the working-class retirement crisis, and the ludicrous amounts of wealth held by America’s billionaires.</p>
<p>We are supposed to be horrified, for example, by the gap between Social Security’s income ($1.244 trillion for this year) and its cash outlays ($1.237 trillion). We are <em>not </em>supposed to notice that Michael Bloomberg’s wealth gain since September of last year ($17.7 billion*) would cover almost the entire 2023 shortfall of $22 billion all by itself, or that the entire amount could be recouped by throwing in Bill Gates’ gains during the same period.</p>
<p>That’s right: the nine-month income of two billionaires alone would erase Social Security’s entire actuarial imbalance for a full year. (And 2022 was <a class="rm-stats-tracked" href="https://observer.com/2022/07/2022-has-been-the-worst-year-for-billionaires/" target="_blank" rel="noopener noreferrer">a bad year for billionaires</a>; “bad,” of course, being a very relative term.)</p>
<p>A trillion-plus dollars sounds like a lot of money, and it is. But the personal wealth of just ten Americans would cover Social Security’s entire budget for an entire year. Not that it would, at least under current law. The law dictates that Social Security’s costs be covered by a payroll tax levied for that purpose alone. But a wealth tax, or something like it, could be a popular option if the program faces a real funding crisis.</p>
<p>There are already sound proposals to “scrap the cap” on income that is taxed for Social Security, and to include investment and other sources of income in that tax. Billionaires would face a tax hike under these proposals, although their total taxes would still be well below mid-20<sup>th</sup>century norms.</p>
<p>The tax question surely accounts for some of the billionaires’ antipathy toward Social Security but, even so, their feelings seem to run unusually high on the subject.</p>
<h4>What They Say</h4>
<p>The billionaires’ vituperation toward Social Security can be seen in Elon Musk’s ill-informed <a class="rm-stats-tracked" href="https://twitter.com/elonmusk/status/1641940181115609091?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1641940181115609091%7Ctwgr%5E3c5baf2a0ebe4f27b65a41b88efa117d588a2815%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Ftheintercept.com%2F2023%2F04%2F09%2Felon-musk-social-security-cuts%2F" target="_blank" rel="noopener noreferrer">tweet</a> about it (which <em>The Intercept</em>’s <a class="rm-stats-tracked" href="https://theintercept.com/2023/04/09/elon-musk-social-security-cuts/" target="_blank" rel="noopener noreferrer">Jon Schwarz</a>ably dissected). It can be found in CEO conclaves like “<a class="rm-stats-tracked" href="https://www.huffpost.com/entry/jetblue-and-its-friends-a_b_2467926" target="_blank" rel="noopener noreferrer">Fix the Debt</a>,” where the heads of corporations like JetBlue, Bridgestone, and Microsoft, as well as <a class="rm-stats-tracked" href="https://www.salon.com/2012/10/27/ten_filthy_rich_tax_dodging_hypocrites/" target="_blank" rel="noopener noreferrer">government largesse</a> recipients like Honeywell, GE, Boeing, <a class="rm-stats-tracked" href="https://www.commondreams.org/tag/bank-of-america">Bank of America</a>, and <a class="rm-stats-tracked" href="https://www.commondreams.org/tag/goldman-sachs">Goldman Sachs</a> assembled to attack programs “entitlements.”</p>
<p>It oozes through op-eds like <a class="rm-stats-tracked" href="https://www.ft.com/content/d5a798f8-db10-11e0-bbf4-00144feabdc0#axzz1XkI181qF" target="_blank" rel="noopener noreferrer">this one</a> from predatory billionaire Steve Schwarzman, who magnanimously promised to “<a class="rm-stats-tracked" href="https://www.salon.com/2011/09/12/schwarzman_dimwit/" target="_blank" rel="noopener noreferrer">share the pain</a>” of financial sacrifice with elderly Social Security recipients living on a few hundred dollars a month. (5.5 million seniors <a class="rm-stats-tracked" href="https://www.prnewswire.com/news-releases/new-feeding-america-study-finds-that-5-5-million-seniors-faced-hunger-in-2021--301808550.html" target="_blank" rel="noopener noreferrer">reportedly</a> faced food insecurity in 2021; Schwarzman “<a class="rm-stats-tracked" href="https://fortune.com/2023/02/24/blackstone-ceo-steve-schwarzman-net-worth-compensation/" target="_blank" rel="noopener noreferrer">took home a record $1.27 billion for 2022</a>”.)</p>
<p class="pull-quote">The goal is to frame Social Security cuts in false, technocratic terms as the inevitable outcome of simple arithmetic. They want it to look as if the decision to cut benefits made itself. That way, they leave no fingerprints on the corpse of retirement security.</p>
<p>It’s reflected in Mitt Romney’s bitter words at a 2012 fundraiser, when he told a roomful of fellow rich people that “they”—it’s always “they,” not “us”—&#8221;they believe the government has a responsibility to care for them, that they are entitled: to health care, to food, to housing, you name it.”</p>
<p>Added Romney, “That&#8217;s an <em>entitlement</em>.&#8221;</p>
<p>Most of all, it can be seen in works of the late billionaire Peter G. Peterson, a conservative hedge funder and former Nixon cabinet member who lavished money on politicians from both parties in pursuit of his curious obsession: to reduce government spending, with a special focus on cuts to Social Security and Medicare. The foundation, astroturf groups, and think tanks Peterson created have worked for decades to elevate the national debt above all other policymaking concerns, regardless of the effect on working Americans, with a special focus on cuts to Social Security and Medicare.</p>
<p>The goal is to frame Social Security cuts in false, technocratic terms as the inevitable outcome of simple arithmetic. They want it to look as if the decision to cut benefits made itself. That way, they leave no fingerprints on the corpse of retirement security.</p>
<h4>Why They Hate</h4>
<p>But why? Why do the ultra-wealthy hate Social Security so much? It’s not just self-interest, although there is certainly that. The answer lies in the anthropology, as well as the accountancy, of the billionaire class. Social Security represents everything the typical billionaire loathes, including community, solidarity, and the empowerment of the working class.</p>
<p class="pull-quote">Social Security isn’t charity, and that galls them. Social Security is run for working people – people who know they have earned those benefits.</p>
<p>Billionaire CEOs belong to a group whose membership is earned through obsession, greed, competitiveness, and lack of empathy. It is a population self-selected for sociopathy and work-life imbalance. It’s hard to make a billion dollars without cheating people, and it’s hard to cheat people when you see them – <em>really</em> see them, through the eyes of understanding and emotion. That’s why someone like Schwarzman can equate his own “sacrifice” (of what, a fifth or sixth yacht?) with the suffering of an ailing grandmother trying to get by on $75 per week.</p>
<p>It&#8217;s impossible to bargain with them by telling them they already have enough money to live like an emperor. At that level, money works the way social media likes work for some other people: it doesn’t affect their lives in any material way, but it boosts their sense of worth and validation. That’s why they’ll never quit. That’s why they’ll never say, “I have enough.” There is always someone else who is gaining on them every time they stop to eat, sleep, make love, express an emotion &#8230;</p>
<p>Sure, they’ll write a check to charity from time to time. That’s good for the ego. It brings applause, praise, black-tie dinners, and fawning requests for more money. But Social Security isn’t charity, and that galls them. Social Security is run for working people – people who know they have earned those benefits. Pay a <em>tax, </em>with no effusive speeches or stroking of the ego for America’s 0.001 percent? The idea offends their sense of self-importance.</p>
<p>This is why they love to hear politicians like Alan Simpson insult Social Security recipients by <a class="rm-stats-tracked" href="https://www.latimes.com/archives/la-xpm-2012-may-23-la-pn-alan-simpson-pens-scathing-letter-to-greedy-geezers-retiree-group-20120523-story.html" target="_blank" rel="noopener noreferrer">calling them</a> “greedy geezers.” They think they’ve won life’s race. People who have lived other kinds of lives – filled, perhaps, with love and kindness rather than competition and exploitation – are losers to them. In their minds, people like that are nothing. For them to ask anything of the wealthy is, well, impudence.</p>
<h4>Controlling the Discourse</h4>
<p>Unfortunately, the billionaire class increasingly controls US news outlets. Their obsession has warped the national discourse for decades. It has wormed its way into the media ecosystem, as billionaire-funded think tanks, lobbying groups, and politicians flood the airwaves and newspapers with false talking points about the “unaffordability” of such programs. “Both Medicare and Social Security are going broke and taking a larger share of the budget in the process,” ABC’s Martha Raddatz once told the national audience for <a class="rm-stats-tracked" href="https://archive.thinkprogress.org/how-a-terrible-debate-question-helped-paul-ryan-mislead-about-social-security-b9c385af4181/" target="_blank" rel="noopener noreferrer">a vice presidential debate</a>. (Neither half of that statement is <a class="rm-stats-tracked" href="https://www.demos.org/blog/no-martha-raddatz-social-security-not-going-broke" target="_blank" rel="noopener noreferrer">true</a>.)</p>
<p>Their obsession is reflected in a news industry that has been increasingly centralized under billionaire control. Media elites sometimes sounded like jilted lovers when they <a class="rm-stats-tracked" href="https://www.nytimes.com/2023/03/10/us/politics/biden-budget-social-security.html" target="_blank" rel="noopener noreferrer">reported</a> that neither party pushed for Social Security or Medicare cuts in the <a class="rm-stats-tracked" href="https://www.commondreams.org/tag/debt-ceiling">debt ceiling</a> deal.</p>
<p>The Washington Post, which often channels billionaire views on Social Security, ran a must-read article under the headline, “<a class="rm-stats-tracked" href="https://www.washingtonpost.com/politics/2022/05/01/billionaires-politics/" target="_blank" rel="noopener noreferrer">How a billionaires boys’ club came to dominate the public square</a>.” As Michael Scherer and Sarah Ellison note,</p>
<p>“Technological change and the fortunes it created have given a vanishingly small club of massively wealthy individuals the ability to play arbiter, moderator and bankroller of not only the information that feeds the nation’s discourse but also the architecture that undergirds it.”</p>
<p>The billionaires’ obsession is also reflected at non-profit outlets like <em>NPR</em>—which, despite the word “public” in its name, relies heavily on corporate and billionaire donors for survival.</p>
<h4>Dialing for Dollars</h4>
<p>What the billionaires say, usually goes. “&#8230; (E)conomic elites and organized groups representing business interests have substantial independent impacts on U.S. government policy,” a <a class="rm-stats-tracked" href="https://www.cambridge.org/core/journals/perspectives-on-politics/article/testing-theories-of-american-politics-elites-interest-groups-and-average-citizens/62327F513959D0A304D4893B382B992B#article" target="_blank" rel="noopener noreferrer">2014 study</a> found, “while average citizens and mass-based interest groups have little or no independent influence.”</p>
<p>Things have only gotten worse since then. Billionaires poured <a class="rm-stats-tracked" href="https://www.commondreams.org/news/2022/11/03/drowning-our-democracy-us-billionaires-have-pumped-nearly-900000000-midterms" target="_self">nearly $1 billion</a> ($<a class="rm-stats-tracked" href="https://qz.com/american-billionaires-political-spending-overwhelmingl-1849751449" target="_blank" rel="noopener noreferrer">881,000,000</a>) into the last round of congressional elections. How does this affect policy? Politicians who carry out the wishes of billionaires, corporate CEOs, and lobbyists raise more money, of course. But there is also a process of acculturation, where elected officials become so steeped in the world of elite consensus that they come to believe in it themselves.</p>
<p>Consider, for example, the infamous <a class="rm-stats-tracked" href="https://www.huffpost.com/entry/call-time-congressional-fundraising_n_2427291" target="_blank" rel="noopener noreferrer">slide deck</a> which advised incoming Congressional Democrats to spend four hours a day on “call time” and one hour per day on “strategic outreach,” both of which involve raising money for their next campaign. Imagine spending four to five hours a day calling people who despise Social Security, and it soon becomes clear that only a miracle has protected Social Security so far—and miracles don’t last forever.</p>
<p class="pull-quote">It would be a mistake to assume that the recent “debt ceiling deal” means that Social Security is safe.</p>
<p>Unless you’re a candidate with mass support like <a class="rm-stats-tracked" href="https://www.commondreams.org/tag/bernie-sanders">Bernie Sanders</a>, campaign fundraising requires constant immersion in the anti-Social Security mindset of the ultra-wealthy—which, when combined with the GOP’s longstanding hostility to the program, means that the people who make our laws are steeped in a worldview that considers “entitlement programs” expensive and superfluous.</p>
<p>That’s why it would be a mistake to assume that the recent “debt ceiling deal” means that Social Security is safe. Neither party wanted to take the unpopular step of calling for benefit cuts in this round of negotiations. But the billionaires and corporations who drive our political system won’t stop trying. That’s how they got where they are; by persisting until they win.</p>
<p>Previous attempts to cut Social Security have come in the form of ‘bipartisan commissions’ whose role was to obscure the process and shield both parties from blame. (Mitt Romney’s TRUST Act would follow the same playbook, as would other billionaire-backed proposals.) The White House has correctly called these commissions “death panels,” which may be one reason why billionaires primarily <a class="rm-stats-tracked" href="https://qz.com/american-billionaires-political-spending-overwhelmingl-1849751449" target="_blank" rel="noopener noreferrer">contributed to Republican candidates</a> in the last election cycle. But public opinion must be mobilized to prevent any further <a class="rm-stats-tracked" href="https://www.nytimes.com/2023/03/10/us/politics/biden-budget-social-security.html" target="_blank" rel="noopener noreferrer">softening</a> of President Biden’s position on Social Security, before the billionaires let their money do the talking in the 2024 race.</p>
<p>Because, when it comes to money in politics, Bob Dylan’s words hold true: money doesn’t talk, it swears.</p>
<p><em>Richard (RJ) Eskow is a freelance writer. Much of his work can be found on eskow.substack.com. His weekly program, The Zero Hour, can be found on cable television, radio, Spotify, and podcast media. He is a senior advisor with Social Security Works.</em></p>
<p><em>This <a href="https://www.commondreams.org/opinion/billionaires-hate-social-security">article</a> was licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.</em></p>
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		<title>Does Your Government Care? A Citizen&#8217;s Checklist for Regenerative Government</title>
		<link>https://fixcapitalism.com/does-your-government-care-a-citizens-checklist-for-regenerative-government/</link>
		<comments>https://fixcapitalism.com/does-your-government-care-a-citizens-checklist-for-regenerative-government/#comments</comments>
		<pubDate>Thu, 08 Jun 2023 11:17:29 +0000</pubDate>
		<dc:creator><![CDATA[Christian Sarkar]]></dc:creator>
				<category><![CDATA[Business]]></category>
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		<guid isPermaLink="false">http://fixcapitalism.com/?p=1489</guid>
		<description><![CDATA[BY CHRISTIAN SARKAR, PHILIP KOTLER, ENRICO FOGLIA In our book &#8211; REGENERATION: The Future of Community in a Permacrisis World, we point out that in the US today, we see that our politicians can’t even stand up to the NRA, let alone address climate collapse.  Instead, they distract us with culture wars and fake controversy – banning books, &#8230; <a href="https://fixcapitalism.com/does-your-government-care-a-citizens-checklist-for-regenerative-government/" class="more-link">Continue reading <span class="screen-reader-text">Does Your Government Care? A Citizen&#8217;s Checklist for Regenerative Government</span></a>]]></description>
				<content:encoded><![CDATA[<p>BY CHRISTIAN SARKAR, PHILIP KOTLER, ENRICO FOGLIA</p>
<p>In our book &#8211; <a href="https://regenmarketing.org/book/"><em>REGENERATION: The Future of Community in a Permacrisis World</em></a>, we point out that in the US today, we see that our politicians can’t even stand up to the NRA, let alone address climate collapse.  Instead, they distract us with culture wars and fake controversy – banning books, and literally <strong>canceling democracy</strong> via gerrymandering and voter suppression.</p>
<p class="CSP-ChapterBodyText" align="left">Shouldn’t our governments be promoting the <b>Common Good</b>?  Isn’t that the definition of <em>regenerative governance</em>?  Here’s a <strong>citizen&#8217;s checklist</strong> we compiled – does your government check the boxes?</p>
<p class="CSP-ChapterBodyText" align="left">If you were to <strong>grade your elected government officials</strong> against their <strong>support  for the Common Good</strong>, you might get a better idea if they really care about you and your children&#8217;s children.</p>
<p class="CSP-ChapterBodyText" align="left"><img class="  wp-image-1490 aligncenter" src="http://fixcapitalism.com/wp-content/uploads/2023/06/REGENgov.png" alt="REGENgov" width="546" height="1035" /></p>
<p class="CSP-ChapterBodyText" align="left"><em>Christian Sarkar, Philip Kotler, and Enrico Foglia are the co-founders of <a href="https://regenmarketing.org">The Regenerative Marketing Institute</a>, and the joint authors of <a href="https://regenmarketing.org/book/">REGENERATION: The Future of Community in a Permacrisis World</a>.</em></p>
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		<title>How AI could take over elections – and undermine democracy</title>
		<link>https://fixcapitalism.com/how-ai-could-take-over-elections-and-undermine-democracy/</link>
		<comments>https://fixcapitalism.com/how-ai-could-take-over-elections-and-undermine-democracy/#comments</comments>
		<pubDate>Sun, 04 Jun 2023 17:04:57 +0000</pubDate>
		<dc:creator><![CDATA[Christian Sarkar]]></dc:creator>
				<category><![CDATA[AI]]></category>
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		<guid isPermaLink="false">http://fixcapitalism.com/?p=1483</guid>
		<description><![CDATA[BY ARCHON FUNG and LAWRENCE LESSIG Could organizations use artificial intelligence language models such as ChatGPT to induce voters to behave in specific ways? Sen. Josh Hawley asked OpenAI CEO Sam Altman this question in a May 16, 2023, U.S. Senate hearing on artificial intelligence. Altman replied that he was indeed concerned that some people &#8230; <a href="https://fixcapitalism.com/how-ai-could-take-over-elections-and-undermine-democracy/" class="more-link">Continue reading <span class="screen-reader-text">How AI could take over elections – and undermine democracy</span></a>]]></description>
				<content:encoded><![CDATA[<p>BY ARCHON FUNG and LAWRENCE LESSIG</p>
<p>Could organizations use artificial intelligence language models such as ChatGPT to induce voters to behave in specific ways?</p>
<p>Sen. Josh Hawley asked OpenAI CEO Sam Altman this question in a <a href="https://www.c-span.org/video/?528117-1/openai-ceo-testifies-artificial-intelligence">May 16, 2023, U.S. Senate hearing</a> on artificial intelligence. Altman replied that he was indeed concerned that some people might use language models to manipulate, persuade and engage in one-on-one interactions with voters.</p>
<p>Altman did not elaborate, but he might have had something like this scenario in mind. Imagine that soon, political technologists develop a machine called Clogger – a political campaign in a black box. Clogger relentlessly pursues just one objective: to maximize the chances that its candidate – the campaign that buys the services of Clogger Inc. – prevails in an election.</p>
<p>While platforms like Facebook, Twitter and YouTube use forms of AI to get users to <a href="https://www.vox.com/technology/2018/2/19/17020310/tristan-harris-facebook-twitter-humane-tech-time">spend more time</a> on their sites, Clogger’s AI would have a different objective: to change people’s voting behavior.</p>
<h2>How Clogger would work</h2>
<p>As a <a href="https://scholar.google.com/citations?user=3Bl9cn8AAAAJ&amp;hl=en">political scientist</a> and a <a href="https://scholar.google.com/citations?user=LxG5YWcAAAAJ&amp;hl=en">legal scholar</a> who study the intersection of technology and democracy, we believe that something like Clogger could use automation to dramatically increase the scale and potentially the effectiveness of <a href="https://www.washingtonpost.com/opinions/book-review-the-victory-lab-the-secret-science-of-winning-campaigns-by-sasha-issenberg/2012/11/02/35aa27a0-1d20-11e2-9cd5-b55c38388962_story.html">behavior manipulation and microtargeting techniques</a> that political campaigns have used since the early 2000s. Just as <a href="https://www.vox.com/recode/2019/12/10/20996869/facebook-political-ads-targeting-alex-stamos-interview-open-sourced">advertisers use your browsing and social media history</a> to individually target commercial and political ads now, Clogger would pay attention to you – and hundreds of millions of other voters – individually.</p>
<p>It would offer three advances over the current state-of-the-art algorithmic behavior manipulation. First, its language model would generate messages — texts, social media and email, perhaps including images and videos — tailored to you personally. Whereas advertisers strategically place a relatively small number of ads, language models such as ChatGPT can generate countless unique messages for you personally – and millions for others – over the course of a campaign.</p>
<p>Second, Clogger would use a technique called <a href="https://towardsdatascience.com/reinforcement-learning-101-e24b50e1d292">reinforcement learning</a> to generate a succession of messages that become increasingly more likely to change your vote. Reinforcement learning is a machine-learning, trial-and-error approach in which the computer takes actions and gets feedback about which work better in order to learn how to accomplish an objective. Machines that can play Go, Chess and many video games <a href="https://www.nytimes.com/2018/12/26/science/chess-artificial-intelligence.html">better than any human</a> have used reinforcement learning.</p>
<figure><iframe src="https://www.youtube.com/embed/O0mVwDuZAtc?wmode=transparent&amp;start=0" width="440" height="260" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
<figcaption><span class="caption">How reinforcement learning works.</span></figcaption>
</figure>
<p>Third, over the course of a campaign, Clogger’s messages could evolve in order to take into account your responses to the machine’s prior dispatches and what it has learned about changing others’ minds. Clogger would be able to carry on dynamic “conversations” with you – and millions of other people – over time. Clogger’s messages would be similar to <a href="https://theconversation.com/why-bad-ads-appear-on-good-websites-a-computer-scientist-explains-178268">ads that follow you</a> across different websites and social media.</p>
<h2>The nature of AI</h2>
<p>Three more features – or bugs – are worth noting.</p>
<p>First, the messages that Clogger sends may or may not be political in content. The machine’s only goal is to maximize vote share, and it would likely devise strategies for achieving this goal that no human campaigner would have thought of.</p>
<p>One possibility is sending likely opponent voters information about nonpolitical passions that they have in sports or entertainment to bury the political messaging they receive. Another possibility is sending off-putting messages – for example incontinence advertisements – timed to coincide with opponents’ messaging. And another is manipulating voters’ social media friend groups to give the sense that their social circles support its candidate.</p>
<p>Second, Clogger has no regard for truth. Indeed, it has no way of knowing what is true or false. <a href="https://spectrum.ieee.org/ai-hallucination">Language model “hallucinations”</a> are not a problem for this machine because its objective is to change your vote, not to provide accurate information.</p>
<p>Third, because it is a <a href="https://theconversation.com/what-is-a-black-box-a-computer-scientist-explains-what-it-means-when-the-inner-workings-of-ais-are-hidden-203888">black box type of artificial intelligence</a>, people would have no way to know what strategies it uses.</p>
<figure><iframe src="https://www.youtube.com/embed/Yg3q5x7yDeM?wmode=transparent&amp;start=0" width="440" height="260" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
<figcaption><span class="caption">The field of explainable AI aims to open the black box of many machine-learning models so people can understand how they work.</span></figcaption>
</figure>
<h2>Clogocracy</h2>
<p>If the Republican presidential campaign were to deploy Clogger in 2024, the Democratic campaign would likely be compelled to respond in kind, perhaps with a similar machine. Call it Dogger. If the campaign managers thought that these machines were effective, the presidential contest might well come down to Clogger vs. Dogger, and the winner would be the client of the more effective machine.</p>
<p>Political scientists and pundits would have much to say about why one or the other AI prevailed, but likely no one would really know. The president will have been elected not because his or her policy proposals or political ideas persuaded more Americans, but because he or she had the more effective AI. The content that won the day would have come from an AI focused solely on victory, with no political ideas of its own, rather than from candidates or parties.</p>
<p>In this very important sense, a machine would have won the election rather than a person. The election would no longer be democratic, even though all of the ordinary activities of democracy – the speeches, the ads, the messages, the voting and the counting of votes – will have occurred.</p>
<p>The AI-elected president could then go one of two ways. He or she could use the mantle of election to pursue Republican or Democratic party policies. But because the party ideas may have had little to do with why people voted the way that they did – Clogger and Dogger don’t care about policy views – the president’s actions would not necessarily reflect the will of the voters. Voters would have been manipulated by the AI rather than freely choosing their political leaders and policies.</p>
<p>Another path is for the president to pursue the messages, behaviors and policies that the machine predicts will maximize the chances of reelection. On this path, the president would have no particular platform or agenda beyond maintaining power. The president’s actions, guided by Clogger, would be those most likely to manipulate voters rather than serve their genuine interests or even the president’s own ideology.</p>
<h2>Avoiding Clogocracy</h2>
<p>It would be possible to avoid AI election manipulation if candidates, campaigns and consultants all forswore the use of such political AI. We believe that is unlikely. If politically effective black boxes were developed, the temptation to use them would be almost irresistible. Indeed, political consultants might well see using these tools as required by their professional responsibility to help their candidates win. And once one candidate uses such an effective tool, the opponents could hardly be expected to resist by disarming unilaterally.</p>
<p>Enhanced privacy protection <a href="https://theconversation.com/how-can-congress-regulate-ai-erect-guardrails-ensure-accountability-and-address-monopolistic-power-205900">would help</a>. Clogger would depend on access to vast amounts of personal data in order to target individuals, craft messages tailored to persuade or manipulate them, and track and retarget them over the course of a campaign. Every bit of that information that companies or policymakers deny the machine would make it less effective.</p>
<figure><iframe src="https://www.youtube.com/embed/q55Tusc-rxc?wmode=transparent&amp;start=0" width="440" height="260" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
<figcaption><span class="caption">Strong data privacy laws could help steer AI away from being manipulative.</span></figcaption>
</figure>
<p>Another solution lies with elections commissions. They could try to ban or severely regulate these machines. There’s a <a href="https://www.lawfareblog.com/machine-first-amendment-rights">fierce debate</a> about whether such <a href="https://dx.doi.org/10.2139/ssrn.3922565">“replicant” speech</a>, even if it’s political in nature, can be regulated. The U.S.’s extreme free speech tradition <a href="https://freespeechproject.georgetown.edu/artificially-speaking-the-intersection-of-free-speech-and-ai/">leads many leading academics to say it cannot</a>.</p>
<p>But there is no reason to automatically extend the First Amendment’s protection to the product of these machines. The nation might well choose to give machines rights, but that should be a decision grounded in the challenges of today, <a href="https://dx.doi.org/10.2139/ssrn.3922565">not the misplaced assumption</a> that James Madison’s views in 1789 were intended to apply to AI.</p>
<p>European Union regulators are moving in this direction. Policymakers revised the European Parliament’s draft of its Artificial Intelligence Act to designate “AI systems to influence voters in campaigns” <a href="https://www.europarl.europa.eu/news/en/press-room/20230505IPR84904/ai-act-a-step-closer-to-the-first-rules-on-artificial-intelligence">as “high risk”</a> and subject to regulatory scrutiny.</p>
<p>One constitutionally safer, if smaller, step, already adopted in part by <a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_22_3664">European internet regulators</a> and in <a href="https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=BPC&amp;division=7.&amp;title=&amp;part=3.&amp;chapter=6.&amp;article=">California</a>, is to prohibit bots from passing themselves off as people. For example, regulation might require that campaign messages come with disclaimers when the content they contain is generated by machines rather than humans.</p>
<p>This would be like the advertising disclaimer requirements – “Paid for by the Sam Jones for Congress Committee” – but modified to reflect its AI origin: “This AI-generated ad was paid for by the Sam Jones for Congress Committee.” A stronger version could require: “This AI-generated message is being sent to you by the Sam Jones for Congress Committee because Clogger has predicted that doing so will increase your chances of voting for Sam Jones by 0.0002%.” At the very least, we believe voters deserve to know when it is a bot speaking to them, and they should know why, as well.</p>
<p>The possibility of a system like Clogger shows that the path toward <a href="https://www.nytimes.com/2023/03/27/opinion/ai-chatgpt-chatbots.html">human collective disempowerment</a> may not require some superhuman <a href="https://www.wired.com/story/what-is-artificial-general-intelligence-agi-explained/">artificial general intelligence</a>. It might just require overeager campaigners and consultants who have powerful new tools that can effectively push millions of people’s many buttons.<br />
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<p><a href="https://theconversation.com/profiles/archon-fung-1440913">Archon Fung</a>, Professor of Citizenship and Self-Government, <em><a href="https://theconversation.com/institutions/harvard-kennedy-school-3840">Harvard Kennedy School</a></em> and <a href="https://theconversation.com/profiles/lawrence-lessig-1442775">Lawrence Lessig</a>, Professor of Law and Leadership, <em><a href="https://theconversation.com/institutions/harvard-university-1306">Harvard University</a></em></p>
<p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/how-ai-could-take-over-elections-and-undermine-democracy-206051">original article</a>. IMAGE: <a class="source" href="https://www.flickr.com/photos/biodivlibrary/27961218785/">Eric Smalley, TCUS; Biodiversity Heritage Library/Flickr; Taymaz Valley/Flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a></em></p>
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		<title>&#8216;This Must Be Stopped&#039;: House Republicans Plan to Gut Ethics Office</title>
		<link>https://fixcapitalism.com/this-must-be-stopped-house-republicans-plan-to-gut-ethics-office/</link>
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		<pubDate>Thu, 05 Jan 2023 01:36:48 +0000</pubDate>
		<dc:creator><![CDATA[Christian Sarkar]]></dc:creator>
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		<description><![CDATA[BY JESSICA CORBETT &#8220;The MAGA House is more interested in sweeping any corruption amongst their ranks under the rug and performing political stunts against the Biden administration than they are doing anything constructive,&#8221; said one critic. Government watchdog groups on Monday blasted plans by U.S. House Republicans to gut an independent, nonpartisan ethics office that was &#8230; <a href="https://fixcapitalism.com/this-must-be-stopped-house-republicans-plan-to-gut-ethics-office/" class="more-link">Continue reading <span class="screen-reader-text">&#8216;This Must Be Stopped': House Republicans Plan to Gut Ethics Office</span></a>]]></description>
				<content:encoded><![CDATA[<p>BY JESSICA CORBETT</p>
<blockquote><p>&#8220;The MAGA House is more interested in sweeping any corruption amongst their ranks under the rug and performing political stunts against the Biden administration than they are doing anything constructive,&#8221; said one critic.</p></blockquote>
<p>Government watchdog groups on Monday blasted plans by U.S. House Republicans to gut an independent, nonpartisan ethics office that was established 15 years ago to review allegations of misconduct against members of the chamber and their staffers.</p>
<p>The GOP is set to have a narrow House majority once new members are sworn in on Tuesday. The party&#8217;s proposed changes to the Office of Congressional Ethics (OCE) were among various <a class="rm-stats-tracked" href="https://www.commondreams.org/news/union-busting-on-day-1-house-gop-aims-to-stop-congressional-staff-from-organizing" target="_blank">controversial</a> policies included in the <a class="rm-stats-tracked" href="https://docs.house.gov/billsthisweek/20230102/BILLS-118hresPIH-118th-Rules-of-the-House-of-Representatives.pdf" target="_blank">rules package</a> for the 118th Congress that was unveiled late Sunday.</p>
<p>As <em>Politico</em>&#8216;s Nicholas Wu summarized on Twitter, the Republican proposals &#8220;would effectively sack most of the Democratic-appointed board members by instituting term limits and make it much harder to hire staff.&#8221;</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en"><img src="https://s.w.org/images/core/emoji/72x72/1f440.png" alt="👀" class="wp-smiley" style="height: 1em; max-height: 1em;" /><img src="https://s.w.org/images/core/emoji/72x72/1f440.png" alt="👀" class="wp-smiley" style="height: 1em; max-height: 1em;" /><img src="https://s.w.org/images/core/emoji/72x72/1f440.png" alt="👀" class="wp-smiley" style="height: 1em; max-height: 1em;" /> in the House Republican Rules package &#8211; a provision tucked into its section on the Office of Congressional Ethics would effectively sack most of the Democratic-appointed board members by instituting term limits and make it much harder to hire staff <a href="https://t.co/FqaG3nhQLI">https://t.co/FqaG3nhQLI</a> <a href="https://t.co/Hl9Kpzbmet">pic.twitter.com/Hl9Kpzbmet</a></p>
<p>— Nicholas Wu (@nicholaswu12) <a href="https://twitter.com/nicholaswu12/status/1609936404838055936?ref_src=twsrc%5Etfw">January 2, 2023</a></p></blockquote>
<p><script src="https://platform.twitter.com/widgets.js" async="" charset="utf-8"></script>Wu was among the political observers and ethics experts who pointed out that the changes would likely make it harder to investigate U.S. Rep.-elect George Santos (R-N.Y.), who was <a class="rm-stats-tracked" href="https://www.commondreams.org/news/george-santos-lies-expulsion" target="_blank">caught</a> lying about his education, employment history, and religious background. Although Democrats have called for Santos to step aside over his campaign trail lies and the Republican Nassau County district attorney has <a class="rm-stats-tracked" href="https://www.commondreams.org/news/nassau-county-george-santos" target="_blank">launched</a> an investigation into him, the incoming congressman is still expected to take office on Tuesday. </p>
<blockquote class="twitter-tweet"><p><img src="https://s.w.org/images/core/emoji/72x72/1f6a8.png" alt="🚨" class="wp-smiley" style="height: 1em; max-height: 1em;" /> <img src="https://s.w.org/images/core/emoji/72x72/1f6a8.png" alt="🚨" class="wp-smiley" style="height: 1em; max-height: 1em;" /> <img src="https://s.w.org/images/core/emoji/72x72/1f6a8.png" alt="🚨" class="wp-smiley" style="height: 1em; max-height: 1em;" /> The 1st thing the GOP is planning to do when they vote on their rules package is gut Congressional ethics oversight I call it the Santos protection package—it would cut off one important avenue for investigating him Call your GOP rep (if you have) to object 2022253121 <a href="https://t.co/cFuPED77ns">https://t.co/cFuPED77ns</a> — Norm Eisen (@NormEisen) <a href="https://twitter.com/NormEisen/status/1609992043606032385?ref_src=twsrc%5Etfw">January 2, 2023</a></p></blockquote>
<p><script src="https://platform.twitter.com/widgets.js" async="" charset="utf-8"></script></p>
<p>Kyle Herrig, president of the group Accountable.US, <a class="rm-stats-tracked" href="https://accountable.us/house-gop-set-to-gut-office-of-congressional-ethics/" target="_blank">noted</a> in a statement that the move could help not only Santos but also members such as Republican Congressman Jim Jordan (Ohio), who—along with GOP Rep. Andy Biggs (Ariz.), Kevin McCarthy (Calif.), and Scott Perry (Texas)—was <a class="rm-stats-tracked" href="https://www.commondreams.org/news/2022/12/11/there-evidence-criminality-jan-6-panel-meets-decide-referrals-doj" target="_blank">referred</a> to the House Committee on Ethics for ignoring a subpoena from the select committee investigating the January 6, 2021 attack on the U.S. Capitol.</p>
<p>&#8220;It&#8217;s telling that one of the very first actions of the incoming MAGA Republican-led House will be to kneecap a bipartisan office that oversees congressional ethics,&#8221; said Herrig. &#8220;This is about protecting their ethically challenged members like fraudster George Santos or January 6 subpoena-defying Jim Jordan from accountability—or perhaps in anticipation of a new wave of corruption allegations and ethics violations from other MAGA extremists.&#8221;</p>
<p>&#8220;There is certainly no good reason to make it easier for members to get away with ethics violations, which only invites bad behavior,&#8221; he added. &#8220;It sends a clear message that the MAGA House is more interested in sweeping any corruption amongst their ranks under the rug and performing political stunts against the Biden administration than they are doing anything constructive on behalf of the American people.&#8221;</p>
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<p dir="ltr" lang="en">This is a big deal: when the new Congress convenes tomorrow, the incoming Republican majority is set to vote on a rules package gutting the Office of Congressional Ethics.</p>
<p>— Citizens for Ethics (@CREWcrew) <a href="https://twitter.com/CREWcrew/status/1610031945563475968?ref_src=twsrc%5Etfw">January 2, 2023</a></p></blockquote>
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When Republicans tried to gut it in 2017, they backed down after significant public outrage. </p>
<p>We can do that again. </p>
<p>Call your member of Congress at 202-224-3121 and tell them not to attack the Office of Congressional Ethics.</p>
<p>— Citizens for Ethics (@CREWcrew) <a href="https://twitter.com/CREWcrew/status/1610033103593930752?ref_src=twsrc%5Etfw">January 2, 2023</a>
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<p><script src="https://platform.twitter.com/widgets.js" async="" charset="utf-8"></script></p>
<p>Public Citizen government affairs lobbyist Craig Holman <a class="rm-stats-tracked" href="https://www.citizen.org/news/first-move-by-the-new-house-republican-majority-scuttle-ethics-and-accountability/" target="_blank">highlighted</a> in a statement that &#8220;OCE is a bipartisan ethics office that helps monitor and report on ethics issues involving members of Congress, and frequently makes its recommendations to the House Ethics Committee on a unanimous vote. It has a proven track record of enhancing transparency and enforcement of ethics rules and has gained widespread support among the American public.&#8221;</p>
<p>&#8220;These are measures that will render the ethics office ineffectual and which no member, from either party, should support,&#8221; Holman said of the GOP&#8217;s proposed changes. &#8220;Today&#8217;s Republican Party is rife with ethical transgressions. And it is now trying to make it much harder to hold members of Congress accountable to the standards of decency we expect.&#8221;</p>
<p><em>Licensed under Creative Commons (CC BY-NC-ND 3.0). Original <a href="https://www.commondreams.org/news/house-republicans">here</a> &gt;&gt; </em><em>Jessica Corbett is a staff writer for Common Dreams. </em><em><a class="full_biolink" href="https://www.commondreams.org/author/jessica-corbett">Full Bio &gt;</a></em></p>
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		<title>&#8220;Can Politics be Regenerative?&#8221; &#8211; An Interview with Sicily&#8217;s Cettina Martorana</title>
		<link>https://fixcapitalism.com/can-politics-be-regenerative-an-interview-with-sicilys-cettina-martorana/</link>
		<comments>https://fixcapitalism.com/can-politics-be-regenerative-an-interview-with-sicilys-cettina-martorana/#comments</comments>
		<pubDate>Sun, 04 Sep 2022 17:49:41 +0000</pubDate>
		<dc:creator><![CDATA[Christian Sarkar]]></dc:creator>
				<category><![CDATA[Climate Change]]></category>
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		<description><![CDATA[A family-oriented professional, Cettina Martorana initially didn&#8217;t want to run for office in the Sicilian regional elections of 2022. Her kids challenged her with a question &#8211; &#8220;How come you tell us to do what&#8217;s right but you aren&#8217;t taking that advice when you are asked to run?&#8221;  The result?  Martorana is a candidate in the upcoming &#8230; <a href="https://fixcapitalism.com/can-politics-be-regenerative-an-interview-with-sicilys-cettina-martorana/" class="more-link">Continue reading <span class="screen-reader-text">&#8220;Can Politics be Regenerative?&#8221; &#8211; An Interview with Sicily&#8217;s Cettina Martorana</span></a>]]></description>
				<content:encoded><![CDATA[<p><em>A family-oriented professional, <strong>Cettina Martorana</strong> initially didn&#8217;t want to run for office in the Sicilian regional elections of 2022. Her kids challenged her with a question &#8211; &#8220;How come you tell us to do what&#8217;s right but you aren&#8217;t taking that advice when you are asked to run?&#8221;  The result?  Martorana is a candidate in the upcoming regional elections. Her philosophy is one of regeneration, she claims.  What exactly does that mean? And, can politics truly be regenerative?  We tracked her down for this interview.</em></p>
<p><a href="http://fixcapitalism.com/wp-content/uploads/2022/09/Screen-Shot-2022-09-03-at-6.50.31-PM.png"><img class="aligncenter  wp-image-1442" src="http://fixcapitalism.com/wp-content/uploads/2022/09/Screen-Shot-2022-09-03-at-6.50.31-PM.png" alt="Screen Shot 2022-09-03 at 6.50.31 PM" width="557" height="553" /></a></p>
<p><strong>How did you decide to run for office and what makes your campaign different?</strong></p>
<p>Unfortunately, our political world is not in sync with reality &#8211; especially when it comes to the concerns people have with the impact of fires, floods, draught, and the unbearable temperatures that are coming. Instead, we see a dismissal of climate science and an intentional obfuscation of facts to slow the adoption of legislation to fight climate change.</p>
<p>We&#8217;ve created  a psychological climate of eco-anxiety for the young. I know this because I have three children.</p>
<p>When <strong>Caterina Chinnici</strong> <em>[the candidate running for president of the Sicilian Assembly]</em> asked me to run on her ticket, I refused at first, but my children and my husband both convinced me to run.  My campaign is about <strong>regeneration</strong>, and I believe it is truly the only way forward.</p>
<p><strong>What do you mean by regeneration?</strong></p>
<p>My understanding of regeneration is based on what we learned from COVID. As you know, COVID destroyed our tourist economy in Sicily.  Now, with Sicilian families in trouble and our planet in danger, we cannot simply go through another cynical cycle of politics.  What this means that we must rethink the very idea of &#8220;left&#8221; versus &#8220;right&#8221; and come together to solve problems.</p>
<p>We have to act. For our children and our children&#8217;s children.</p>
<p>Last year, when I was councilor for economic actives of the Municipality of Palermo, the Mayor and I invited the <a href="https://regenmarketing.org">Regenerative Marketing Institute</a> to Palermo; we wanted to learn about different approaches to community regeneration which went beyond the sustainability and circular-economy paradigms which sound good on paper, but achieve little in terms of actually stopping our climate crisis.</p>
<p><em>We also learned that the climate crisis is also an economic crisis and a social crisis.</em> In a <strong>polycrisis world</strong>, we cannot focus on one issue at the expense of another.  The real shift is what we do to move from an economy of exploitation and extraction to a regenerative economy.  Nature must become a priority. Or we will no longer have an island to live on.</p>
<p>We must ask ourselves &#8211; is politics making our world better or worse?  Our communities?  Our future&#8230;  If the answer is no, then we must make the shift to regeneration.</p>
<p><strong>Can you give us some details?</strong></p>
<p>We use a metaphor based on the <strong>olive tree</strong> &#8211; which is a familiar one for us in the Mediterranean:</p>
<p><a href="http://fixcapitalism.com/wp-content/uploads/2022/09/alberocm.jpg"><img class="aligncenter  wp-image-1446" src="http://fixcapitalism.com/wp-content/uploads/2022/09/alberocm.jpg" alt="alberocm" width="499" height="557" /></a></p>
<p>What we call the <strong>&#8220;tree of regeneration&#8221;</strong> is simply an olive tree which connects the community together, from the foundation or roots &#8211; based on tolerance, rights, and justice, to the three fruits we hold dear: family, honest work, and nature.  Our communities are connected &#8211; and how we treat the weak is a measure of our strength.</p>
<p>How would we act if we were truly serious about doing something about the climate crisis?</p>
<p>Would we keep doing what we&#8217;ve been doing?  Paying lip-service to the Planet and little else?</p>
<p><strong>Why are you using comics in your campaign?  </strong></p>
<p>How do we get young people to listen to our vision?</p>
<p>By including them in the vision-making process.</p>
<p>But first we must explain what we stand for in a way that attracts attention, and our comics do that for sure.</p>
<p><a href="http://fixcapitalism.com/wp-content/uploads/2022/09/comic11.jpg"><img class="aligncenter  wp-image-1447" src="http://fixcapitalism.com/wp-content/uploads/2022/09/comic11.jpg" alt="comic1" width="640" height="834" /></a></p>
<p><strong>How did you come up with all the answers?</strong></p>
<p>That&#8217;s it. We don&#8217;t have the answers.  But we Sicilians do have a spirit to solve problems.  That&#8217;s why Sicily has survived for over the centuries.</p>
<p>I&#8217;m not saying the left has all the answers either. But in Italy, the parties on the right were until recently telling their constituents to cut the South loose &#8211; that we didn&#8217;t belong to Italy. And now they&#8217;ve shifted from south-bashing to immigrant-bashing.  The reality is we need to all work on finding solutions, not polarizing people with hate.</p>
<p><em>Our vision is not division.</em>  <strong>It&#8217;s regeneration.</strong></p>
<p>To young we say: bring us your ideas.  We hear you!</p>
<p>Let&#8217;s see together what we can do to regenerate Sicily.  I invite your readers to learn more at <a href="https://www.cettinamartorana.it">cettinamartorana.it</a>.</p>
<p><strong>Thanks.  </strong></p>
<p><em>INTERVIEW BY CHRISTIAN SARKAR</em></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
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		<title>The U.S. Government’s Program Of Welfare For The Wealthy</title>
		<link>https://fixcapitalism.com/the-u-s-governments-program-of-welfare-for-the-wealthy/</link>
		<comments>https://fixcapitalism.com/the-u-s-governments-program-of-welfare-for-the-wealthy/#comments</comments>
		<pubDate>Sat, 04 Jun 2022 10:03:05 +0000</pubDate>
		<dc:creator><![CDATA[Christian Sarkar]]></dc:creator>
				<category><![CDATA[Business]]></category>
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		<guid isPermaLink="false">http://fixcapitalism.com/?p=1424</guid>
		<description><![CDATA[BY &#8211; STANLEY F. STASCH From the late 1940s to the mid-1970s, ordinary people in the United States enjoyed a tremendous increase in their prosperity. It was the highest level of prosperity the world had ever experienced, and it resulted in the creation of the great American middle class. That period was immediately followed by the &#8230; <a href="https://fixcapitalism.com/the-u-s-governments-program-of-welfare-for-the-wealthy/" class="more-link">Continue reading <span class="screen-reader-text">The U.S. Government’s Program Of Welfare For The Wealthy</span></a>]]></description>
				<content:encoded><![CDATA[<p>BY &#8211; STANLEY F. STASCH</p>
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<p>From the late 1940s to the mid-1970s, ordinary people in the United States enjoyed a tremendous increase in their prosperity. It was the highest level of prosperity the world had ever experienced, and it resulted in the creation of the great American middle class. That period was immediately followed by the 1980-2010 years, which witness the destruction of the great American middle class. That unfortunate development was caused by the great income inequality between bosses and their workers that first emerged in the late 1970s, and then continued relentlessly for the next 40-50 years. The U.S. Government was perhaps the major instigator of that growing income inequality.</p>
<p>Much of what happens in government occurs “behind the scenes” or “in the dark,” in such a manner that the citizenry is deprived of accurate information about matters of importance to them. On such occasions, typically a special interests group influences government to do something that favors its welfare, but often at the expense of the welfare of others. Alternatively, sometimes the special interests group convinces government to do nothing that prevents the special interests group from taking some action that is beneficial to itself but harmful to others. Both types of events often receive little or no publicity that brings them to the public’s attention in a manner that causes it to be fully informed. In such situations, the U.S. Government acts as a “stealth government” working against the general welfare of the American people.</p>
<p>The first paragraph of the United States Constitution reads:</p>
<p>We the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the Blessings of Liberty to ourselves and our posterity, do ordain and establish this Constitution for the United States of America.</p>
<p>The stealth government activities described in this paper did not in any way attempt to establish justice or to promote the general welfare, as envisioned by the Constitution. Rather, those stealth government activities were efforts to impose injustice on one or more groups of individuals in the U.S., or they were efforts to promote the welfare of a relatively small and select group of individuals at the expense of a much, much larger group or groups of individuals.</p>
<p>From 1970 to 2010 there were at least 17 occasions when the U.S. Government acted in this manner. Those 17 stealth government actions could most appropriately be called the U.S. Government’s Program of Welfare for the Wealthy.</p>
<p>This paper describes how, from the 1970s to the decade of the 2000s, the U.S. Government created its Program of Welfare for the Wealthy by undertaking some 17 stealth government actions against the American people.*</p>
<p><em>*For the complete history of these actions, see “The Creation and Destruction of the Great American Middle Class: 1910-2010,” at <a href="http://ecommons.luc.edu/business_facpubs/5/">http://ecommons.luc.edu/business_facpubs/5/</a>. </em></p>
<p><em>This paper is derived from that history.</em></p>
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<h3>Background: The Creation of the Great American Middle Class</h3>
<p>In the late 1920s, before the onset of the Great Depression of the 1930s, the top 10 percent of the U.S. population claimed about 23.9 percent of the income earned by all of the people in the U.S. The other 90 percent of the population earned the remaining 76.1 percent of the nation’s income.</p>
<p>That is, in the late 1920s:</p>
<ul>
<li>each 1.0 percent of households at or near the top of the income scale was claiming about 2.39percent of the nation’s earnings (23.9% divided by 10% = 2.39%); and</li>
<li>each 1.0 percent of households near the middle of the income scale was claiming only about 0.85percent (76.1% divided by 90.0 % = 0.85%) of the nation’s earnings.These percentages indicate that, in the late 1920s, individuals at or near the top of the income scale claimed about three times (2.39 percent versus 0.85 percent) the incomes claimed by individuals near the middle of the income scale. In other words, in the late 1920s, significant income inequality existed between the bosses and their workers.
<p>Franklin Delano Roosevelt and Harry Truman were presidents of the country from 1933 to 1953. Their New Deal and Fair Deal Programs, along with the country’s World War II GI Bill of Rights, instituted new policies that strongly favored military veterans and ordinary workers. Presidents Roosevelt and Truman legitimized labor unions; this action strongly encouraged workers to form and join labor unions at their places of employment. This they did in great numbers from the mid-1930s to the 1950s, which resulted in their receiving much better wages, benefits and working conditions compared with previously. Furthermore, because non-unionized businesses had to offer competitive wages and benefits, this prosperity extended to millions of other workers from the late 1940s into the 1970s and 1980s. In addition, the G.I. Bill helped millions of veterans pay for their college education, and then, a few years later, helped them finance the purchase of their own homes.</p>
<p>The result of that prosperity was that by 1976, the top 10 percent of workers only claimed 8.9 percent of the nation’s earning, while the bottom 90 percent of workers claimed 91.1 percent. That is:</li>
</ul>
<ul>
<li>each 1.0 percent of households at or near the top of the income scale was claiming only about 0.89 percent of the nation’s earnings (8.9% divided by 10% = 0.89%), and</li>
<li>each 1.0 percent of households in the middle of the income scale was claiming about 1.01 percent (91.1% divided by 90% = 1.01%).Compared with the statistics from the late 1920s (just above), these 1976 statistics clearly indicate that the nation’s income was now being distributed much more evenly across the entire working population. <strong>The great American middle class was being created!</strong><br />
<h3><strong>Background: The Business Community, Republican Party, and Conservative Democrats joined together in a strong faction to regain the wealth status they enjoyed in the 1920s and before.</strong></h3>
<p>The above statistics, when compared with those from the late 1920s, reveal the magnitude of the wealth the top 10 percent of earners gave up to the bottom 90 percent of earners over the decades from the 1920s to the 1970s. By the 1970s, the business community and the Republican Party, along with conservative Democrats, decided to fight to regain the incomes they had lost. To succeed in that fight, the faction would first have to destroy or severely weaken the power that labor unions had acquired during the Roosevelt and Truman presidential administrations. This section describes six important actions the faction took in their effort to destroy the power of labor unions and regain the wealth they believed rightfully belong to them.</li>
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<p><strong>In 1947 Congress passed the Taft-Hartley Act, which was a very harsh, anti-union law.</strong> In the 1946 mid-term elections, Republicans took control of both houses of Congress. They quickly passed the Taft- Hartley Act, whose main purpose was to severely restrict the powers recently granted to labor unions. President Truman vetoed the Act, but the Republicans and conservative Democrats in Congress overrode Truman’s veto. The Act gave specific rights to businesses by taking away specific rights from unions. For example, “union shops”, where all workers were required to be union members, could be made illegal by any state that chose to do so.</p>
<p><strong>In the late 1950s, President Eisenhower supported passage of the Landrum-Griffin Act, the harshest law against labor unions since the passage of the Taft-Hartley Act.</strong> When Eisenhower became president, he appointed as his Secretary of Labor Martin Durkin, the head of the steamfitters union. Durkin had agreed to become part of the cabinet because during the campaign, Eisenhower had promised labor some revisions in the Taft-Hartley law, as he believed some of the provisions were too harsh and needed amending. But when he became president, he reneged on his promise.</p>
<p>Instead, he very strongly supported the passage of the Landrum Griffin Act, which severely restricted organizational picketing and “imposed stiff requirements on disclosure and standards of conduct that tightened the web of legalistic complexity already choking the labor movement.”</p>
<p><strong>In 1965 the business community/Republican Party/conservative Democrats faction successfully prevented President Johnson’s and the Democratic Party’s attempt to reform the Taft-Hartley Act.</strong> Lyndon Johnson won the 1964 election by a wide margin, and the Democrats won both houses of Congress (by 68 to 32 in the Senate, by 295 to 140 in the House). With their substantial victory at the polls, Johnson and Congressional Democrats tried to repeal the most blatantly anti-labor portions of the Taft-Hartley Act. However, Republicans in the Senate were joined by enough conservative southern Democrats to sustain a filibuster of the proposed reform legislation. This action demonstrated that the faction still retained power even with the Democrats controlling both the White House and Congress.</p>
<p><strong>In the 1970s the business community “made a big move” to regain its influence in Washington.</strong> In 1970 the New York-based National Association of Manufacturers moved its headquarters to Washington, D.C. Because New York City was the country’s center of business, the organization had been headquartered there. But the interrelationship of business with business was no longer considered as important as the interrelationship of business with government. The chief executives of Americans top 200 corporations formed the Business Roundtable, and it, too, moved to Washington. The National Federation of Independent Businesses, with a half a million members, also moved to Washington. So did the U.S. Chamber of Commerce, the National Association of Wholesalers-Retailers, and the National Restaurant Association. These were the “big six” business associations and they relocated to Washington to form an extremely powerful force there.</p>
<p><strong>From the late 1970s throughout the 1980s, these groups increased their spending on congressional elections some five hundred percent.</strong> By the late 1970s these groups had hired such a large force of lobbyists that, when combined, they had 130 lobbyists for each of the 535 members of Congress. The result of this lobbying effort was that the anti-business Congress of the early 1970s became the pro- business Congress of the late 1970s</p>
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<p><strong>By 1984, these lobbyists had established a powerful reputation: “When business really tries, when it is fully united and raring to go, it never loses a big battle in Washington.”</strong></p>
<p><strong>*In the mid-1970s President Gerald Ford (Republican) vetoed two bills that would have strongly benefitted ordinary consumers and labor unions.</strong> According to the proposed legislation, the Office of Consumer Representation would give consumers their own protective voice in all legal and regulatory matters within the federal system. For example, in the construction trades, where two or more unions were present at a construction site, if a union had a grievance with its sub-contractor, that union was not legally allowed to picket in order to demonstrate it grievance in public. The proposed Common Situs Picketing bill would have legalized such picketing.</p>
<p>The Office of Consumer Representation would have given ordinary consumers a powerful voice in Washington, something they previously had not had. The Common Situs Picketing Bill would have given unions more power than they had had. President Ford’s veto prevented union workers and ordinary consumers from having stronger voices in important matters of concern to them.</p>
<p><strong>*In 1978 the Democrats in Congress were pushing another bill that would support labor unions when confronted by the Taft-Hartley law.</strong> <strong>Because the bill would have passed the Senate if it came up for a vote, two Republican Senators, Orrin Hatch of Utah and Richard Lugar of Indiana, offered one amendment after another, until the number of amendments eventually totaled almost one thousand.</strong> After five weeks of such delaying tactics, three votes were finally taken to end the filibuster. The closest vote favoring ending the filibuster was 58 – 41, two short of the needed 60 votes. A noted historian called this defeat a “Waterloo for labor.”</p>
<p><strong>Did these actions weaken labor unions?</strong></p>
<p>The following four observations clearly indicate that the above actions were very effective in greatly <strong>weakening the power of unions</strong>.</p>
<ul>
<li>The effectiveness of labor union activities reached its zenith about 1976, when the bottom 90 percent of workers received 91.1 percent of the nation’s income. After 1976, that 91.1 percentage constantly trended downward, and by 2010, reached approximately 75 percent.</li>
<li>The bottom 90 percent of workers were able to achieve the rewards noted above because, from the late 1930s to the 1960s-1970s, union membership continued to grow until about 33-34 percent of workers in the U.S. were union members. After that, union membership went into a steady decline until 2010 when only 10-12 percent of U.S. workers were union members.</li>
<li>As noted, workers received an increasing share of the nation’s income from the mid-1940s to the mid-1970s. During that period the productivity of U.S. workers grew at a steady pace, and workers’ wage increases essentially kept pace with the increases in productivity. That occurred because unions were strong enough at the bargaining table to demand wage and benefit increases that matched productivity increases. But that changed in the middle of the 1970s when unions were no longer strong enough when renegotiating their labor contracts to demand wage and benefit increases that matched productivity increases.</li>
<li>After the business community moved to Washington in the 1970s, it had thousands of lobbyists doing their bidding. Labor unions could not afford an army of lobbyists who were strong enough to compete with the business-community’s lobbyist force.Once the power of labor unions had been significantly weakened, the U.S. Government then proceeded to utilize stealth government actions to create its program of <strong>Welfare for the Wealthy</strong>.</li>
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<h2>Stealth government actions in the 1970s</h2>
<p>There were four stealth government actions during the 1970s: two undertaken by Congress and two facilitated by Supreme Court decisions.</p>
<p><strong>1. Student loans guaranteed by the government rewarded bankers at the expense of students.</strong> In the 1972 student loan program established under Sallie Mae, the government did not lend money directly to students. Banks made the loans, and the government guaranteed the loans. The banks took absolutely no risk. Banks could borrow money from the Federal Reserve at low interest rates, then lend the money to students at substantially higher interest rates. President Clinton tried to change the system to one where students borrowed directly from the government, but Congress prevented that approach. The net effect was that Congress passed laws that forced students to pay higher interest rates on their loans than they would have, had there been available a system of direct-government loans. The bankers got very rich. Students suffered severe financial burdens.</p>
<p>(Currently, there are more than a million students with loan balances exceeding $200,000. The dollar total of student debt held by the government is $1.6 trillion, which is approximately equal to the total GDP of Canada.)</p>
<p><strong>2. The new bankruptcy law of 1978 strongly favored management over workers.</strong> In 1978 Congress passed a little-noticed bankruptcy law that greatly shifted legal power in bankruptcy cases away from the courts and the public, and gave that power to the management of the company declaring bankruptcy. Instead of ousting the company’s management and replacing them with an outside bankruptcy trustee (as had been common practice), the new law not only left the old management in place, but also allowed them to mastermind the entire bankruptcy process. This new law permitted the old management to shed old debts and abrogate long-standing labor union contracts that had guaranteed wages, health benefits, and lifetime pensions. Thus, management was empowered to deprive rank-and-file employees of millions of dollars in hard won economic gains. The result was that management teams that could not profitably manage their business were rewarded generously for their incompetence, while the company’s workers were forced to sacrifice not only their current incomes, but also their retirements.</p>
<p><strong>3. Supreme Court decisions in the late 1960s made all labor union strikes illegal.</strong> Labor disputes now had to submit to arbitration. The 1930’s Norris-LaGuardia Act prohibited courts from hearing labor cases or issuing injunctions against labor unions. In a 1969 case (the Boys Market case), the Supreme Court decided that it would begin to issue injunctions to enforce no-strike clauses in labor contracts. Then the Court went even further. It would imply “no strike” clauses even if no such clause existed. The Court reasoned that labor unions didn’t need strikes anymore, and that everything could be decided by a neutral arbitrator. With these decision, the Supreme Court declared strikes illegal, thus denying unions the use of their most powerful weapon in their struggle to improve workers’ conditions. Employers could then do anything they chose to do and know that unions couldn’t strike or do anything but wait and wait and wait, because companies had no incentive anymore to deal with grievances when they could get injunctions, contempt, and punitive fines. Management benefited greatly, while workers suffered much loss of income and wealth.</p>
<p><strong>4. A 1978 Supreme Court decision allowed banks to charge high credit card interest rates for low- income credit card holders.</strong> In Marquette National Bank of Minneapolis v. First of Omaha Service Corp., the Court invalidated the use of a state’s anti-usury law against nationally chartered banks. Those laws were designed to prohibit banks from charging excessively high interest rates. That decision effectively deregulated credit cards interest rates. Banks could now charge 30 percent to people who previously could not qualify for a bank loan because they were too high a risk.</p>
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<p>Because of that decision, Citicorp decided to move its credit card operations to South Dakota. To do so, it had to convince the Governor of South Dakota to persuade that state’s legislature to formally invite Citicorp to operate there, as required by federal law. The Governor then successfully lobbied the legislature to pass a bill to repeal the state’s cap on interest rates. That done, Citicorp then moved its entire credit card operation to South Dakota.</p>
<p>Within a few years, several other national banks and other states followed the pattern established by the Citicorp-South Dakota precedent. The banks then began to aggressively market their high-interest rate cards to customers who carried large balances but rarely paid more than the monthly minimum. Because those payments consisted mostly of interest and not principle, these credit card operations became very profitable and important profit centers for the banks. Through this action, the government encouraged the exploitation by banks of individuals who were at or near the bottom of the income scale.</p>
<p><em>These four stealth government actions allowed wealthy individuals to legally steal money (i) from students, (ii) from workers in companies that declared bankruptcy, (iii) from a company’s unionized workers when those workers were attempting to strike in order to settle a grievance, and (iv) from high- risk, low-income individuals trying to obtain a credit card. Each of these actions became part of the U.S. Government’s Program of Welfare for the Wealthy.</em></p>
<h2>Stealth government actions in the 1980s</h2>
<p>There were four such actions in this decade: three taken by President Reagan’s administration, and one by Congress.</p>
<p><strong>5. The Reagan presidency allowed corporations to replace pension plans with 401(k) plans, thus greatly reducing the retirement incomes of millions of middle and lower class workers.</strong> In 1981 the Reagan Treasury Department, without specific legislation passed by Congress and signed by the president, ruled that a tax provision allowing the use of 401(k) plans—narrowly intended for a dozen or so New York state corporations—could be applied across the nation. As a result, the percentage of large and medium-sized American firms that offered traditional lifetime pensions fell from 83 percent in 1980 to 28 percent in 2011.</p>
<p>In the old system, employers put up 89 percent of the money for retirement, while the employees only contributed 11 percent. Under the 401(k) system, the employees now paid 51 percent of the cost of the system, while the employers only paid 49 percent. Under the old system, companies guaranteed monthly retirement checks to employees for as long as they lived. Under the 401 (k) system, it was now up to employees to provide for their own retirement savings and to manage their money for long-term security, a task beyond the capability of millions, as the record now shows. Overall, this Reagan decision proved to be a disaster for huge numbers of workers when they entered retirement. However, much of the savings accruing to corporations from this change went toward greater CEO compensation, which further exacerbated the growing income inequality.</p>
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<p><strong>6. The Reagan administration allowed corporations to “buy back” their own company stock.</strong> Prior to 1982, a corporation’s repurchase of their own stock (a “buy back”) was considered an attempt to manipulate the company’s stock price. Doing so was illegal, and had been for decades. In 1982, under Reagan, the Securities and Exchange Commission (SEC) adopted rule 10b-18, the result of which was that a corporation’s repurchasing of its own stock was no longer an illegal act. By making this change, the SEC ceased to be stock regulator, as decreed by law, and, instead, became an active promoter of stock price manipulation.</p>
<p>Since the mid-1980s, corporations have spent trillions of dollars repurchasing their own stock, almost all of it for the sole purpose of giving manipulative boosts to their companies’ stock prices. The reason for doing so was that it would make corporate CEOs fabulously wealthy, because of the stock options given to them. In effect, the CEOs were stealing money from current stockholders, because their stock options devalued the stocks currently held by stockholders.</p>
<p><strong>7. Congress passed the Garn-St. Germain Act and eliminated three important banking regulations, the absence of which contributed to the nation’s subprime housing mortgage crisis that culminated in the financial crash of 2007-2008.</strong> In 1982 Congress passed the Garn-St. Germain Act, which basically deregulated the Savings and Loan industry. The Act allowed “thrifts” (i.e., savings and loans associations) to increase the interest rates they offered savers and to use the extra income to make“speculative” investments, which previously they had not been permitted to do. Due to the poor investments they made, several thousand thrifts failed in the 1986-2002 period. That created a shortage of mortgage lending institutions (i.e., “lenders”), a shortage that was quickly filled by newly emerging mortgage-writing companies, which were both unregulated and unscrupulous.</p>
<p>Also in the early 1980s, through the Secondary Mortgage Market Enhancement Act, Congress (1) abolished usury interest rates on mortgages and the requirement of a down payment when buying a home, (2) allowed banks to offer adjustable-rate mortgages to financially unqualified individuals, and (3) allowed the “securitization” of those mortgages on the secondary market, even though they were of very questionable quality. This was the start of the “subprime mortgages” market. Because of these deregulations, lenders sold their subprime mortgages to investment banks like Goldman Sachs, who securitized them and sold them as high-quality securities to private individuals and pension funds, who expected to receive a high rate of return on their purchases.</p>
<p>The mortgage lenders and the investment bankers got very rich, while those who took out a subprime mortgage or who bought securitized mortgages on the secondary market lost everything.</p>
<p>Lenders used that new source of income (reselling their subprime mortgages to investment banks) to again begin issuing adjustable-rate mortgages to financially unqualified individuals, thus starting the cycle all over again. From the very beginning, these home mortgages were loaded “with poisonous features that made them virtually impossible to repay.” When those home buyers began to default on their mortgages in the early 2000s, they lost most or all of the investments they had made in those homes. Individuals who had purchased those securitized mortgages as good investments also lost most or all of their investments. During the decade of the 2000s, those subprime mortgage foreclosures occurred with increasingly greater frequency, and that caused the financial crisis of 2007-2008.</p>
<p><strong>8. Reagan and Republicans aligned themselves with the ultraconservative Federalist Society to identify young prospective Supreme Court nominees who strongly embraced very conservative political ideals.</strong> From President Reagan’s point of view, the federal judicial system was no longer meant to be politically independent—i.e., be one of the three equal branches of government. Instead it was to become a legal force aligned with and supporting the Republican Party. Reagan decided that the source of these future Republican-friendly Supreme Court justices was to be the Federalist Society.</p>
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<p>All Federalist Society members were <strong>libertarians</strong> who strongly opposed big government programs like Social Security, Medicare, and Medicaid. They also opposed legal abortions, government regulation of private industry and other popular initiatives like progressive income taxes. Included among the things that Federalist Society members favored were a premium on individual liberty, and fewer restrictions on gun ownership and political campaign contributions. With millions of dollars of support from mega- donors like the billionaire <strong>Koch brothers</strong>, the overall effect was that the Federalist Society exerted unparalleled influence over Republican appointees to the Supreme Court.</p>
<p>The Supreme Court is the highest court of the land, and the court that protects the rights and liberties of all Americans. As such, it seems logical that the Court should at least somewhat resemble the profile of the American people. Yet Republican presidents—from Reagan to Trump—consistently nominated to the Supreme Court individuals who were members of the Federalist Society. But the Republicans went even further in their efforts to “Republicanize” the federal judicial system; they did so by only appointing to the federal judiciary individuals who were Catholics, and therefore probably opposed to legal abortions— as were evangelical Christians and mainline Protestants, both of whom were very important Republican Party constituencies.</p>
<p>Consider the last four Republican presidents and the individuals they appointed to the Supreme Court. Reagan appointed both Antonin Scalia and Anthony Kennedy (although Kennedy, a conservative, was not a Federalist Society member). George Herbert Walker Bush appointed Clarence Thomas. George W. Bush appointed John Roberts and Samuel Alito. Trump appointed Neil Gorsuch, Amy Coney Barrett, and Brett Kavanaugh (who was raised Catholic). All eight of these appointees were very conservative, were raised Catholic, and all but Kennedy were members of the Federalist Society. Lastly, all eight appointees were graduates of good law schools and, as such, were probably in the top five percent of the income scale. The group in no way resembled a profile of the American people.</p>
<p>By the end of the George W. Bush presidency (2008), the pro-business/anti-common worker bias of this “Republicanized” Supreme Court (e.g., Scalia, Kennedy, Thomas, Roberts and Alito) was evident in the Court’s decisions (i) that halted the Florida recount of votes in the Bush vs. Gore presidential election of 2000 (reflecting a strong Republican/business bias), (ii) in the Lilly Ledbetter case (indicating a strong favoritism for big business and a very strong bias against women and common workers), and (iii) in the Citizens United case that strongly favored corporations and very wealthy individuals when it came time to select the next President and members of the next Congress, both of which were most likely to be involved in supporting the next stealth government action greatly benefitting corporations and/or very wealthy individuals.</p>
<p>(By the end of Trump’s presidency (2020), six of the nine justices were members of the Federalist society, were raised Catholic, and were probably in the top five percent of the income scale. They did not even come close to resembling the profile of the American people.)</p>
<p><em>These four stealth government actions allowed individuals in the top one percent of the income scale to legally steal money (v) from ordinary workers when companies switched from pension plans to 401(k)s, (vi) from company shareholders when a company “bought back” its own shares on the open market, (vii) from unqualified, low-income homebuyers when they were sold subprime mortgages, and (viii) from ordinary people whenever the Supreme Court made one of its numerous decisions favoring business over workers or common citizens. These stealth government actions were also part of the U.S. Government’s program of Welfare for the Wealthy.</em></p>
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<h2>Stealth government action in the 1990s</h2>
<p>Bill Clinton, a democrat, was president from 1993 to 2000. There were three stealth government actions taken in the 1990s: two were initiated by Congress, and one by the Supreme Court.</p>
<p><strong>9. Congress encouraged a substantial increase in use of stock options to dramatically increase CEO compensation and cause even greater income inequality.</strong> From 1990 to 2001, CEO annual compensation grew about 400 percent. To a great extent, that growth was due to the use of stock-option grants as a form of executive compensation. Stock options represented about 20 percent of executive compensation in the early 1990s. Twenty years later that figure tripled to about 60 percent of executive compensation.</p>
<p>The payoffs were astronomical, enough to vault a previously affluent corporate executive into the stratosphere of the super-rich. Stock options were the primary vehicle for creating the corporate super- rich. In 1980, only about 30 percent of CEOs had been granted company stock options. By 1994, 70 percent were getting options. By 2000, “mega-option grants” of millions of shares or more had become the norm.</p>
<p>The use of stock options was controversial because they were not treated as an expense in the company’s accounting system. As a consequence, when CEOs exercised their stock options, they represented transfers of wealth from the shareholders of the company’s stock to corporate executives. Since such transfers of wealth occurred without the permission of the shareholders, they were illegal.</p>
<p>The stock option practice finally provoked a political crisis in 1993 when the quasi-regulatory Financial Accounting Standards Board (FASB) announced that it intended (1) to rule that stock options were illegal because “failing to charge options as a business expense was deceptive accounting,” and (2) to require companies to charge them as a cost, just like executive salaries. Corporate America was outraged. It besieged the Securities and Exchange Commission (SEC) that oversaw the FASB.</p>
<p>Congress quickly came to the rescue of corporate America the following year (1994). The Senate voted 88-9 in favor of a resolution that condemned the FASB’s proposed actions as “reckless.” Fearful that Congress would eliminate the FASB and reduce funding for the Securities and Exchange Commission, the chairperson of the SEC directed the FASB to withdraw its proposed ruling. That Senate resolution presented CEOs with another ten years of bountiful wealth. For example, including stock options, Larry Ellison (CEO of Oracle) was paid $706 million in 2001. Michael Eisner (CEO of Disney) received $575 million in 1998, and Sandy Weill (CEO of Citigroup) received $621 million from 1997 to 2000.</p>
<p>(Associated with the granting of stock options to CEOs was the practice of corporations buying back their stock on the open market. (See the second stealth government action in the 1980s.) Since 2004, companies have spent nearly $7 trillion purchasing their own stock—often at inflated prices. That amounted to about 54 percent of all profits from Standard &amp; Poor’s 500-stock index companies between 2003 and 2012.)</p>
<p><strong>10. Congress excluded waitresses and waiters when it increased the federal minimum wage, thus relegating them to poverty or near-poverty incomes.</strong> In the early 1960s, the National Restaurant Association persuaded Congress not to give any minimum wage protection to waitresses and waiters. Those workers would have to live only on the tips they received at work. That changed in 1966, when the minimum wage for waitresses and waiters was set at 50 percent of the minimum wage for other workers. From 1966 to 1996 the tipped wages for waitresses and waiters varied between 50 and 60 percent of the regular minimum wage. In 1996, the Republican-led Congress again raised the minimum wage for regular workers, but that raise did not apply to waitresses and waiters.</p>
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<p>In the early 1990s, the Federal minimum wage for regular workers was $4.00 an hour, but for waitresses and waiters, it was only $2.13 an hour. The minimum wage for tipped workers remained unchanged through the decade of the 2000s, while the Federal minimum wage had risen to $7.25 per hour.</p>
<p>These actions by the Republican Congress reflected the wishes of the National Restaurant Association.</p>
<p><strong>11. The Supreme Court allowed “forced arbitration” clauses in consumer contracts to prevent class action lawsuits against corporations.</strong> When a consumer signs a credit card contract, a cellphone agreement, or a cable television contract, the contract’s fine print is likely to include a “forced arbitration” clause. By signing such a contract or agreement, the consumer gives up her or his right to join with other like consumers in a class action lawsuit against the company issuing the contract. Instead, if the consumer believes the company is being unfair, dishonest, or doing something illegal, she or he must hire a lawyer and enter into individual arbitration with the company. Since the financial reward for any consumer, if they win the arbitration, is likely to be less than the legal fees incurred, there is no incentive for the consumer to enter into such a legal action.</p>
<p>“Forced arbitration” clauses allow companies to include conditions in their contracts which signees do not know about, do not like, or do not want, but which cost the signees a few or several dollars a month. If there are hundreds of thousands of contract signees, those relatively small monthly amounts per individual signee may total in the millions. Over the course of a year, those small amounts may total in the tens of millions of dollars. By including such clauses in their contracts, companies reap great financial benefits, but they are not subject to costly class action lawsuits because of their unfair, dishonest, or illegal practices.</p>
<p>The use of “forced arbitration” clauses was well-established in the late 1990s, and the Supreme Court legalized the practice in ATT v. Concepcion. Corporations and their senior executives use the practice because it allows the top 0.1 percent of earners to legally divert, for their own personal advantage, millions of dollars each year from countless lower and middle income consumers. Members of the judiciary have referred to the forced arbitration/class-action ban as a “get out of jail free” card, because such clauses allow corporations to avoid the legal system, even when they are badly misbehaving.</p>
<p><em>These three stealth government action allowed those at the very top of the income scale to legally steal (ix) from the shareholders of their companies’ stock when they accepted stock options, (x) from the waitresses and waiters in their employ, and (xi) from their customers when they use “forced arbitration” clauses in their companies’ contracts or agreements.</em></p>
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<h2>Stealth government actions in the 2000s</h2>
<p>George W. Bush was president from 2001 to 2009, and the Republicans controlled Congress from 1994 until 2006. There were six stealth government actions during this decade: one was initiated by President Clinton and supported by Congress; two were initiated by President George W. Bush and supported by Congress; two were initiated by Congress and supported by President Bush; and one was supported by both Congress and President Bush.</p>
<p><strong>12. The business community helped President George W. Bush pass his tax cuts for the rich.</strong></p>
<p>President Bill Clinton’s 1993 tax increase on the rich was one of the major forces that resulted in the economic prosperity of the mid-to-late 1990s. For the first time in over 30 years, the U.S. Government’s budget showed a surplus. In fact, it showed a surplus in four straight years, 1998 through 2001, the year that George W. Bush became president. (At the time, economists reported that, if the current economic policies remained unchanged, the federal budget would be in surplus for years to come, and that the entire national debt would be completely eliminated sometime around 2010.)</p>
<p>In January 2001, George W. Bush became president when the Supreme Court intervened in the controversial state of Florida vote recount. In February 2001, President Bush promised Congress he would eliminate $2 trillion from the national debt over the next decade. Referring to the recent budget surpluses, Bush also said “the people of America are being overcharged,” and that, therefore, it was appropriate to give them a tax cut. Republicans had a small margin of control in the House of Representatives at the time, but there was a 50-50 tie in the Senate. As a result, Bush’s proposed tax cuts were likely to be stopped by a Democratic filibuster in the Senate.</p>
<p>In his book, <em>Who Stole the American Dream?</em>, <strong>Hedrick Smith</strong> described how the business community assisted Republicans in getting this tax-cut bill through Congress. (In the passage below, the “Gang of Six” refers to the business community’s six top lobbyist groups: the National Association of Manufacturers, the U.S. Chamber of Commerce, the Business Roundtable (CEOs of the top 200 corporations), the National Federation of Independent Businesses, the National Association of Distributors-Wholesalers, and the National Restaurant Association.)</p>
<p>Tax policy, as one academic put, is “a highly technical realm that is ripe for concealment and mystification,” and the Gang of Six and the Bush White House were not above exploiting public confusion or gullibility. The Democrats warned that 43 percent of the tax cut would go to the top 1.0 percent of the income scale. But the White House highlighted the promise of a quick rebate for the average taxpayer&#8211;$300 for single people and $600 for couples. But that pitch masked the larger truth that, as the years rolled on, the lion’s share of the tax cuts would go to the super-rich.</p>
<p>With the full-court press by the Gang of Six reinforcing the White House push, the Bush bill offering $1.35 billion in tax cuts over a decade passed the House 240-154. In the Senate, Republicans sidestepped a Democratic filibuster by invoking the process of budget reconciliation—which required them to guarantee there would be no loss in revenue, an impossibility with such a huge tax cut. The Republican majority ignored that requirement and the looming deficits and passed the bill 58-33. (p.130)</p>
<p>If 43 percent of $1.35 billion (=$580 million) went to the top 1.0 percent of citizens, the remaining 99.0 percent of citizens received only $770 million. On average, then, any 1.0 percent portion of the middle- lower income citizenry received $7.8 million ($770 million /99 percent = $7.8 million), while the top one percent received $580 million, a ratio of 74 to 1 in favor of the rich. A very good example of the U.S. Government’s program of welfare for the wealthy.</p>
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<p>(In his eight-year presidency, Ronald Reagan increased the national debt from 32.5 percent to 53.1 percent. (All of these national debt figures are expressed as percentages of GDP.) In his four-year presidency, George H.W. Bush further increased the national debt to 66.1 percent, but Bill Clinton decreased it to 56.4 percent during his eight years in the White House. In George W. Bush’s eight years in office, he increased the debt back up to a whopping 84.2 percent. In less than thirty years, three Republican presidents increased the country’s debt from 32.5 percent to 84.2 percent of the nation’s GDP. Without the budget surpluses created by Clinton’s policies, the three Republican presidents would have increased the country’s debt from 32.5 percent of GDP to 93.8 percent of GDP.)</p>
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<p><strong>13. The George W. Bush administration bailed out “banks too big to fail” during the financial crisis of 2007-2008, but prevented distressed homeowners from declaring bankruptcy.</strong> Shortly after the financial crisis began, the Secretary of Treasury, Hank Paulson, the Chairman of the Federal Reserve Board, Ben Bernanke, and the head of the Federal Reserve Bank of New York, Timothy Geithner, warned of impending economic disaster for the nation if $700 million was not immediately made available to the nation’s largest banks. President Bush told Congressional leaders that if such funding were not forthcoming for the banks, the country’s economy would collapse, as per his comments that “this sucker could go down.”</p>
<p>Paulson had been the head of Goldman Sachs, and Geithner had been installed at the New York Fed by major bankers, including Citigroup. The two of them secretly decided which institution would get money, and how much they would get. Inasmuch as Goldman and Citigroup were the largest beneficiaries of the bailout, this reflected badly on the deal. The bailout was made even more suspect by the fact that neither Geithner nor Citigroup revealed any details of the bailout for several months. As a result, the bailout came to look like “a giant insider deal created by Wall Streeter for Wall Streeters, at everyone else’s expense.”</p>
<p>At the time, there were proposals to allow distressed homeowners to declare bankruptcy rather that forfeit their homes to their lenders. Such a development would have given those homeowner more bargaining strength when dealing with their banks. But through their lobbying efforts with Congress, the banking community was able to prevent such a development.</p>
<p>The American people were told that the bailout would be very helpful to everyone. In reality, <em>the bailout saved the large bankers</em>, who used the taxpayer money to keep solvent and to continue to do the kind of deals that made them very rich. Meanwhile, <em>none of that taxpayer money trickled down</em> to small banks, small businesses, and individual homeowners.</p>
<p>The bailout was a clear example of the government taking money and wealth from the middle and lower classes and transferring it to selected individuals in the top 0.1 percent of the income scale</p>
<p><strong>14. Congress’ new treaty greatly facilitated outsourcing U.S. manufacturing jobs to China and increasing imports from China.</strong> Prior to 2000, U.S. trade with China was based on, and limited to, annual agreements between the two countries: that is, a new agreement was negotiated each year. Because that arrangement did not allow for the establishment of longer term relationships between U.S. and Chinese companies, the business community put pressure on Washington to make appropriate changes. Business people argued that freer trade with China (that is, longer term trade agreements with China) would result in an export bonanza from which all Americans would benefit.</p>
<p>President Clinton strongly supported the U.S.-China Relations Act, which passed the House in May 2000. He argued that the agreement would open up China to all of America’s products, “everything from corn to chemicals to computers,” The Republican candidate for president, George W. Bush, declared that it would “open markets to American products and help export American values.” The U.S. trade</p>
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<p>representative proclaimed that it represented broad export potential “across all sectors and all fields of a magnitude unprecedented in the modern era.” The Business Roundtable lobbied Congress for its support and envisioned massive export gains in its ad: “A New trade agreement opens China’s market to our goods and services.” A number of U.S. industries jumped on the bandwagon in support of the treaty, including automobiles, farm equipment, telecommunications, pharmaceuticals, and electronics.</p>
<p>But organized labor was opposed to the treaty, believing that it would lead to massive job losses at home as U.S. companies would move factories to China to take advantage of China’s cheap labor. Smaller U.S. manufacturing firms feared that big U.S. companies would use their China advantage to crush them by producing cheap goods there and exporting them back home.</p>
<p>As U.S. trade with China increased year by year after 2000, so also did unemployment in the U.S. manufacturing sector. From 2000 to 2010, unemployment in the U.S. manufacturing sector declined by some 33-34 percent. Many of those who lost high-paying jobs in manufacturing had to settle for lower- paying jobs in the service sector, or worse. Meanwhile, owners and executives of U.S. firms that were involved in outsourcing U.S. jobs to China were rewarded with significantly greater compensation, leading to even further increases in the nation’s income inequality. For example, reportedly the “six Walmart heirs were worth as much as the bottom 41 percent of American households put together.”</p>
<p>An event (i.e., the passage of the U.S.-China Relations Act of 2000) that had a gigantic negative effect on almost all ordinary Americans should have, in a Democracy, been discussed openly and freely for all to see and consider. But that was not what happened.</p>
<p><strong>15. Congress and the President George W. Bush allowed employers to steal billions of dollars from their employees through legalized wage theft.</strong> First passed in 1938, the Fair Labor Standards Act required that workers be paid time-and-a-half for hours worked beyond the standard forty-hour work week. The act did not apply to managers and executives.</p>
<p>Under this law, a worker would be entitled to time-and-a-half overtime pay if he earned less than $460 per week ($11.50 per hour). If he earned $460 or more a week, he would not be entitled to overtime pay no matter how many hours he worked.</p>
<p>Under the 1938 labor law, workers were supposed to get overtime pay if they did not earn a professional or executive salary. In 1975, such a salary was defined as $455 per week (or $23, 660 per year), and that figure has changed very little over time. Once a worker was paid more than $23,660 per year, he or she typically was no longer eligible for overtime pay.</p>
<p>(If that 1975 salary level ($23,660) had been regularly updated to reflect the effect of inflation since 1975, the newly adjusted salary figure would be $52,000 per year. If such a change had been made, at least 5 million—and perhaps as many 10 million—more workers would have been eligible for overtime pay over those many years.).</p>
<p>By changing the law in 2004 to reclassify many ordinary workers as “executives,” Congress and President George W. Bush legalized, and encouraged, wage thievery that denied millions of workers of billions of dollars of overtime pay that was due to them according to the Fair Labor Standards Act of 1938. In 2019, the Center for Public Integrity reported that the U.S. Department of Labor cited 8,500 companies for minimum wage and overtime pay violations that resulted in their stealing about $287 million from their workers. Reportedly, wage theft is so pervasive that it’s costing U.S. workers at least $15 billion a year.</p>
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<p><strong>16. In 2005, Congress passed a new bankruptcy law that prevented ordinary homeowners from declaring bankruptcy, thus allowing lending banks to continue to charge the homeowners the usurious interest rates demanded by their mortgages and sales contracts.</strong> Republicans were already in control of both houses of Congress when George W. Bush became President. With such “friends” in high places, the financial industry began lobbying for new laws that would make it more difficult for ordinary individuals to file for bankruptcy when they could no longer pay their bills.</p>
<p>Average Americans were having difficulty paying off their subprime mortgages and the principles on their high-interest credit cards. Many were declaring bankruptcy, thus depriving banks of the usurious interest rates they were receiving from their loans. As a result, the financial industry wanted Congress to make it more difficult for average Americans to declare bankruptcy.</p>
<p>To disguise their true intent, the financial industry claimed that such a new law was needed in order to prevent “high-income deadbeats” from using bankruptcy to avoid paying their debts. The real purpose was to make it harder for ordinary individuals to get into bankruptcy court, because the harder it was, the more expensive it would be and the longer it would take, so those people would have to continue paying big penalty fees to their banks.</p>
<p>In 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act, which raised the legal and financial barriers to bankruptcy filings. This caused personal bankruptcy applications to plummet about 62 percent from 2005 to 2006. The new law acted like a legal barricade that prevented hundreds of thousands of honest Americans from using bankruptcy to seek relief from their financial woes. The longer they were prevented from entering bankruptcy, the longer they were legally obligated to keep paying their banks the usurious interest rated demanded by their mortgages and sales contracts.</p>
<p><strong>17. Congress and President Bush allowed U.S. corporations to transform themselves into global corporations, and move thousands of high-tech jobs to foreign countries.</strong> During the decade of the 2000s, a large number of U.S. corporations outsourced thousands of high-tech jobs to foreign countries because they no longer felt the need to manufacture, or do research, or have operations in the U.S.</p>
<p>In his very good book, <em>Who Stole the American Dream?</em>, <strong>Hedrick Smith</strong> recorded the essence of the catastrophe being imposed on the American economy and people by these corporations.</p>
<p><strong>Alex Trotman</strong>, the CEO of Henry Ford’s old company was among the first to openly sound that theme in the late 1990s. “Ford isn’t even an American Company, strictly speaking,” he said. “We’re global.” Ron Rittenmeyer, CEO of EDS, the largest American-based IT services company, described his firm as “agnostic about specifically where we operate.” In 2005, former Intel CEO Barrett was so bullish about Intel’s global presence and operations in an interview with New York Times columnist Thomas Friedman that Friedman paraphrased Barrett as contending that “Intel can be a totally successful company without ever hiring another American.” In 2006, Cisco CEO John Chambers went further. ”What we are trying to do,” he said, “is outline an entire strategy of becoming a Chinese company.”</p>
<p>&#8230;the <strong>National Science Board</strong> reported that 85 percent of the growth in R&amp;D workers by U.S. multinationals between 2003 and 2009 had been abroad, while American-based employment in high-tech manufacturing had dropped 28 percent since 2000.</p>
<p>&#8230;<strong>IBM</strong> has become the flagship for outsourcing technology services, helping a fleet of U.S. firms to relocate as many as a couple of million high-end jobs to Asia, especially in India. If Walmart pushed consumer manufacturing to China, IBM has been the driving force for pushing IT work offshore. It own transformation has been stunning, implemented largely out of public view. In seven short years, from 2003 to 2010, IBM fired so many American IT professionals and hired so many engineers and computer programmers in India that IBM’s India workforce is now larger than that of IBM USA.</p>
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<p>Since 2006, IBM has been secretive about revealing just where its 400,000-person global workforce is stationed. But the Times of India dug out the news that IBM’s Indian workforce—a mere 6,000 in 2003—has catapulted to 100,000, maybe even 130,000, by August 2010. In those seven years, IBM cut its American workforce by 30 percent or more, from 135,000 in 2003 to under 100,000 by early 2011.</p>
<p>But to reduce the unflattering headlines, IBM went sub rosa with its firings. Although federal and state laws require companies to report “material events” such as large layoff, IBM stopped announcing large job cuts in 2006.</p>
<p>Other large, well-known U.S. companies that went into <strong>high-tech job outsourcing</strong> in a big way were <strong>Accenture</strong>, <strong>Hewlett-Packard</strong>, <strong>Dell</strong>, <strong>Deloitte</strong>, <strong>Electronic Data Systems (EDS)</strong>, <strong>Affiliated Computer Services</strong>, <strong>Computer Sciences Corporation</strong>, <strong>J.P. Morgan Chase</strong>, <strong>Bank of America</strong>, and <strong>Citigroup</strong>. With no public announcements by either Corporate or U.S. Government officials, former U.S. corporations, that for decades and decades had benefited hugely from being U.S. corporations, quietly transformed themselves into global corporations, moved thousands of high-tech jobs out of the U.S. into foreign countries, and rejected many if not all responsibilities toward the United States and it citizens.</p>
<p><em>These six stealth government actions allowed wealthy individuals to legally steal money (xii) from all lower and middle class individuals in the country, (xiii) from all the citizens in the U.S., (xiv) from all the workers who lost their jobs or lost income because of the China trade pact, (xv) from all the workers who suffered monetary losses because of wage theft , (xvi) from all the homeowners who lost their investments because they were deprived of declaring bankruptcy, and (xvii) from all the high-tech professionals whose jobs were sent overseas by employers acting as global corporations.</em></p>
<h2>Characteristics of the U.S. Government’s Program of Welfare for the Wealthy</h2>
<p><strong>The first characteristic.</strong> The program consists of the above seventeen stealth government actions. However, it may be possible that still other stealth government actions, that have not yet been identified, are in place and actively contributing to welfare for the wealthy.</p>
<p><strong>The second characteristic.</strong> All three branches of the Federal Government—the Congress, the Supreme Court, and the Administration—initiate stealth government actions.</p>
<ul>
<li>Eight of the seventeen stealth government actions described in this paper were initiated principally by Congress, but several were strongly supported by the current president.</li>
<li>Three of those stealth actions were facilitated by Supreme Court decisions.</li>
<li>President Ronald Reagan initiated three of those stealth government actions, while PresidentGeorge W. Bush initiated two of them.</li>
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<p>• In one stealth action, both the president and Congress were dormant/silent when it was appropriate for both of them to take action (when U.S. corporations transformed themselves into global corporations).</p>
<p><strong>The third characteristic.</strong> The “victims” of some stealth government actions included all or nearly all of the individuals falling within the lower and middle classes.</p>
<ul>
<li>The George W. Bush tax cut was extremely generous to the top 0.1 percent of the population, but the bottom 99.0 percent received only a mere pittance.</li>
<li>During the financial crisis of 2007-2008, the government generously bailed out “banks too big to fail,” but prevented stressed homeowners from declaring bankruptcy. All other ordinary citizens received nothing.The “victims” of some stealth government actions, while smaller in numbers than those described above, , nevertheless did represent a very large segment of the lower and middle classes.</li>
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<li>Millions of ordinary consumers signed contracts or sales agreements containing “forced arbitration” clauses which required those consumers to pay a few or several extra dollars each month, even if they did not want the services they were being charged for.</li>
<li>Congress allowed employers to steal billions of dollars from millions of their employees through legalized wage theft.</li>
<li>During the subprime-mortgage market boom, millions of individuals bought homes they could not afford through mortgages they could not afford. They lost not only their homes, but all they had invested in them.</li>
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<p><strong>SEE ALSO</strong>: Free Online Class: <a href="http://fixcapitalism.com/free-online-class-the-creation-and-destruction-of-the-great-american-middle-class-1930-2010-with-professor-stanley-stasch/">“The Creation and Destruction of the Great American Middle Class (1930-2010)”</a> with <strong>Professor Stanley Stasch</strong></p>
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