political economy

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Under Obama, Trump called job reports “phony.” Now he loves ‘em.

  • Employers added 235,000 new jobs in February, dropping the unemployment rate to 4.7%, the Bureau of Labor Statistics announced in their monthly jobs report released on Friday.
  • It’s a number Trump touted, retweeting a Drudge Report headline saying the economy is “GREAT AGAIN” in all capital letters.
  • But Trump once called the same report he is now celebrating “phony,” saying real unemployment numbers were much higher than the what the BLS reported. Read more (3/10/17 9:41 PM)
nytimes.com
Opinion | Stop Pretending You’re Not Rich
Forget the 1 percent for a moment. It’s the top fifth that rules.
By Richard V. Reeves

When I was growing up, my mother would sometimes threaten my brother and me with elocution lessons. It is no secret that how you talk matters a lot in a class-saturated society like the United Kingdom. Peterborough, our increasingly diverse hometown, was prosperous enough, but not upscale. Six in 10 of the city’s residents voted for Brexit — a useful inverse poshness indicator. (In Thursday’s general election, Peterborough returned a Labour MP for the first time since 2001.)

Our mother, from a rural working-class background herself, wanted us to be able to rise up the class ladder, unencumbered by the wrong accent. The elocution lessons never materialized, but we did have to attend ballroom dancing lessons on Saturday mornings. She didn’t want us to put a foot wrong there, either.

As it turned out, my brother and I did just fine, in no small part because of the stable, loving, middle-class home in which we were raised. Any lingering working-class traces in my own accent were wiped away by three disinfectant years at Oxford. My wife claims they resurface when I drink, but she doesn’t know what she’s talking about — she’s American.

I always found the class consciousness of Britain depressing. It is one of the reasons we brought our British-born sons to America. Here, class is quaint, something to observe in wonder through imported TV shows like “Downton Abbey” or “The Crown.”

So imagine my horror at discovering that the United States is more calcified by class than Britain, especially toward the top. The big difference is that most of the people on the highest rung in America are in denial about their privilege. The American myth of meritocracy allows them to attribute their position to their brilliance and diligence, rather than to luck or a rigged system. At least posh people in England have the decency to feel guilty.

In Britain, it is politically impossible to be prime minister and send your children to the equivalent of a private high school. Even Old Etonian David Cameron couldn’t do it. In the United States, the most liberal politician can pay for a lavish education in the private sector. Some of my most progressive friends send their children to $30,000-a-year high schools. The surprise is not that they do it. It is that they do it without so much as a murmur of moral disquiet.

Beneath a veneer of classlessness, the American class reproduction machine operates with ruthless efficiency. In particular, the upper middle class is solidifying. This favored fifth at the top of the income distribution, with an average annual household income of $200,000, has been separating from the 80 percent below. Collectively, this top fifth has seen a $4 trillion-plus increase in pretax income since 1979, compared to just over $3 trillion for everyone else. Some of those gains went to the top 1 percent. But most went to the 19 percent just beneath them.

The rhetoric of “We are the 99 percent” has in fact been dangerously self-serving, allowing people with healthy six-figure incomes to convince themselves that they are somehow in the same economic boat as ordinary Americans, and that it is just the so-called super rich who are to blame for inequality.

Politicians and policy wonks worry about the persistence of poverty across generations, but affluence is inherited more strongly. Most disturbing, we now know how firmly class positions are being transmitted across generations. Most of the children born into households in the top 20 percent will stay there or drop only as far as the next quintile. As Gary Solon, one of the leading scholars of social mobility, put it recently, “Rather than a poverty trap, there seems instead to be more stickiness at the other end: a ‘wealth trap,’ if you will.”

There’s a kind of class double-think going on here. On the one hand, upper-middle-class Americans believe they are operating in a meritocracy (a belief that allows them to feel entitled to their winnings); on the other hand, they constantly engage in antimeritocratic behavior in order to give their own children a leg up. To the extent that there is any ethical deliberation, it usually results in a justification along the lines of “Well, maybe it’s wrong, but everyone’s doing it.”

(Continue Reading)

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Alan Watts and Terence McKenna: “There is no Authority but Yourself”

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The “Trump effect” is having a devastating impact on foreign applications to US colleges

  • Trump’s travel ban and xenophobic rhetoric is drastically impacting the number of foreign applications at colleges and universities across the country, according to a study published this week by the American Association of Collegiate Registrars and Admissions Officers.
  • The AACRAO surveyed 250 higher education institutions across the country, and found that 39% are reporting a decline in applications from international students — partly thanks to Trump’s travel ban.
  • Any decline in foreign students should be reason for concern to both institutions of higher education and the U.S. economy.
  • International students injected nearly $36 billion into the U.S. economy in 2015, according to a report from the Institute of International Education. Read more (3/17/17 9:55 AM)

A more realistic and thoroughgoing Marxian approach to the question of imperialism in our age, drawing on the fundamental parameters of classical imperialism theory while taking into consideration changing historical conditions, needs to center on capital accumulation. Here the crucial fact is the shift of manufacturing industry in recent decades from the global North to the global South. In 1980 the share of world industrial employment of developing countries had risen to 52 percent; by 2012 this had increased to 83 percent. […] What needs to be explained, however, is that despite this tectonic shift of industry to the periphery, the basic conditions of center and periphery continue in most cases to hold. This is manifested in the seeming inability of countries in the global South, taken as a whole—and leaving out Greater China (including Hong Kong, Macao, and Taiwan Province)—to catch up economically with the nations at the center of the system.

[…]

Economically, the outward movement of generalized-monopoly capitalism is propelled primarily by the competitive struggle for low cost position via global sourcing of labor and increasingly scarce raw materials, and the monopoly rents that all of this generates. The result, as we have seen, is enormous cost savings in production for individual monopolistic enterprises, generating widening profit margins, which, coupled with more traditional forms of tribute, leads to a continual inflow of imperial rent to the center of the system. The full extent of extracted surplus is disguised by the enormous complexity of global value chains, exchange ratios, hidden accounts, and above all by the nature of capitalist GDP accounting itself.

[…]

The phase of global monopoly-finance capital, tied to the globalization of production and the systematization of imperial rent, has generated a financial oligarchy and a return to dynastic wealth, mostly in the core nations, confronting an increasingly generalized (but also highly segmented) working class worldwide. The leading section of the capitalist class in the core countries now consists of what could be called global rentiers, dependent on the growth of global monopoly-finance capital, and its increasing concentration and centralization. The reproduction of this new imperialist system, as Amin explains in Capitalism in the Age of Globalization, rests on the perpetuation of five monopolies: (1) technological monopoly; (2) financial control of worldwide markets; (3) monopolistic access to the planet’s natural resources; (4) media and communication monopolies; and (5) monopolies over weapons of mass destruction. Behind all of this lie the giant monopolistic firms themselves, with the revenue of the top 500 global private firms currently equal to about 30 percent of world revenue, funneled primarily through the centers of the capitalist system and the core financial markets. As Boron points out with respect to the world’s 200 largest multinational corporations, “96 percent…have their headquarters in only eight countries, are legally registered as incorporated companies of eight countries; and their boards of directors sit in eight countries of metropolitan capital. Less than 2 percent of their boards of directors’ members are non-nationals…. Their reach is global, but their property and their owners have a clear national base.”

[…]

The responsibility of the left under these circumstances is to confront, in Lenin’s terms, the “contradictions, conflicts, and convulsions—not only economical, but also political, national, etc.”—that increasingly characterize our era. This means fostering a more “audacious” global movement from below in which the key challenge will be the dismantling of imperialism, understood as the entire basis of capitalism in our time—with the object of creating a more horizontal, egalitarian, peaceful, and sustainable social-metabolic order controlled by the associated producers.

John Bellamy Foster, “The New Imperialism of Globalized Monopoly-Finance Capital” (2015)
Western Marxism as a whole thus paradoxically inverted the trajectory of Marx’s own development itself. Where the founder of historical materialism moved progressively from philosophy to politics and then economics … the successors of the tradition … increasingly turned back from economics and politics to philosophy.
—  Perry Anderson, Considerations on Western Marxism, London: New Left Books, 1976, p. 52.
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Immigrant labor is more important now than ever

  • On Monday, tens of thousands were expected to walk out of their jobs and take to the streets for a national Day Without Immigrants strike. 
  • The strike was predicted by organizers to be the largest single-day labor strike in over a decade.
  • The message of Monday’s protest was simple: Immigrants power the U.S. economy, and America needs them now more than ever. Experts couldn’t agree more.
  • “All net job growth is coming from new businesses, and native-born Americans are becoming less entrepreneurial while new immigrants are picking up the slack,” Jeremy Robbins, executive director for New American Economy, a bipartisan organization devoted to highlighting the economic benefits of immigration reform, said in an interview. 
  • “Last year, even though immigrants were 13% of the population, they started 20% of new businesses, and that’s a huge thing.”
  • According to Robbins, new businesses created by immigrants are key to net job growth in America, which ends up benefiting native-born Americans economic prospects. Read more (5/1/17)

I CANT BELIEVE IM HAVING TO EXPLAIN THIS 100X A DAY: TRUMP DID NOT ADD 235,000 JOBS TO THE ECONOMY LAST MONTH AS HE CLAIMS. OBAMA DID. REMEMBER HIM? THIS WAS THE 76TH CONSECUTIVE MONTH FOR JOB GROWTH (A RECORD) AND YOU CAN BET IT HAD NOTHING TO DO WITH TRUMP. NOT A SINGLE DAMN ONE OF TRUMP’S ECONOMIC POLICIES HAS TAKEN EFFECT YET, AND WONT UNTIL THE U.S. FISCAL YEAR ENDS IN OCTOBER. 

DON’T LET HIM TAKE ANY FUCKING CREDIT FOR THIS. 

The U.S. tourism industry is expecting 2 million fewer visitors because of Trump

  • The United States’ tourism and hospitality industries are freaking out over the effect that Trump’s presidency is expected to have on foreign tourism, according to a new report from the Wall Street Journal.
  • America is set to see a decline of almost 2 million international travelers this year, the biggest drop off since the height of the global financial crisis, said a study by an industry group cited by the Journal. 
  • The biggest drop offs are set to occur in the U.S.’s two major international travel hubs, New York City, and Los Angeles. Read more (3/10/17 11:35 AM)

One of the many reasons we need campaign finance reform is to keep big companies and lobbies from buying our elected officials.

Want to know why so many Senators are voting for Betsy DeVos?
Want to know why so many oppose common sense gun reform?
What to know why pharmaceutical companies can rip you off?
Want to know why Senators oppose funding green energy?

Take a look at who is funding their campaigns.

$15 minimum wage bill passes Illinois House of Representatives

  • The Illinois House of Representatives passed a bill on Tuesday that would gradually raise the state’s $8.25-an-hour minimum wage to $15 an hour.
  • SB71, which would increase the state’s minimum wage incrementally to $15 an hour over the course of five years, now heads to the state Senate.
  • Supporters of the bill and labor activists celebrated the 61-53 vote Tuesday as a victory for advocates of a higher minimum wage. Read more (6/1/17)