Class Warfare Blog

September 11, 2019

Socialism Bad, Capitalism Good

I am not going to state anything novel here but will reinforce things already said. Currently there is an aspect of our political discourse that is summed up by the title of this post. It is, of course, false. What the “defenders of capitalism” are arguing for is the status quo in which we have a quasi-capitalist system, but one that protects the rich and screws the poor.

Think back on the Great Recession of 2008. If you are a pure capitalist, then a great many financiers, bankers, investors, and brokers should have lost all their money (everything but the bare minimums allowed in bankruptcy proceedings). Through greed they backed the wrong horses.

But the word “bailout” then comes to mind. To coin a phrase “there are no bailouts in capitalism” just as “there is no crying in baseball.” If you have taken college-level courses in capitalism, nowhere will you find governmental bailouts as a structural part of capitalism. These sweet deals are brokered by rich people with the people who serve them to protect their wealth.

It was argued that “we couldn’t let such-and-such a bank or insurance company fail.” Wha? Failures is what capitalists brag about. It is what keeps them sharp. It is the leading edge of “competition.” Without failure, just what is capitalism? All of those people should have failed and learned from the experience . . . or not. So, what did they learn instead? A sucker is born every minute?

So, when you hear anti-socialist rhetoric realize that it is from the wealthy, or paid for by the wealthy, to protect the good deal they have going, nothing more and nothing less. And this is actually rebounding upon the rich. Younger Americans hear the anti-socialism rhetoric and they think “Ah, this is what we need to counter those greedy ass hats.” The young are embracing socialism more and more as the rhetoric against it is ramped up. And the harder the rich squeeze the poor and middle class, the more these younger Americans are embracing some form of democratic socialism.

They also aren’t stupid. They see countries like Sweden which are capitalist, just not capitalist as we are. They have a form of democratic socialism, in which the inherent negatives associated with capitalism are suppressed. The government acts on behalf of the people and offers basic services that seem to be the norm in civilized countries. They recognize, as do all thinking people except captured economists and bought politicians, that capitalism is self-destructive unless it is controlled significantly. In this country, the wealthy have turned phrases such as “government regulation” and “unearned income” into either non-terms or epithets. Why would they want there to be no controls on capitalism? Because in this country, when things go well, they profit enormously, and when the crashes inevitably happen, their paid-for politicians step in and the “public” bails them out. This heads I win, tails you lose system benefits only the wealthy, so their support of it is no surprise. The actual surprise is the support existing in the general population for this robber baron mentality.

August 22, 2019

What Motivates Trump’s Supporters?

Like many of you, I felt that the primary motivation of Trump voters was the economic stagnation of the middle class and middle America. The elites were getting richer, hand over fist, while we were getting squeezed by employers and creditors, and that left us with the only option of getting mad. That may not have been the primary motivation, however. This a “must read” article from The Guardian.

A New Poll Shows What Really Interests ‘Pro-Lifers’: Controlling Women by Jill Filipovic.

The subtitle is “According to their own survey responses, anti-abortion voters are hostile to gender equality in practically every aspect” (I assume they meant “every respect” at the end there.)

And, of course, at the source of all of this misogyny? Well, you figure it out.

August 13, 2019

Kitchen Knife v. Semiautomatic Weapons

Gun advocates here in the U.S. usually speak with disdain of Australia which had the temerity to enact significant gun control laws. Well, The Guardian has reported on a killing rampage by a man in Sydney (Sydney Stabbing: One Woman Killed and One Injured In ‘Terrifying Carnage’ in CBD). As I understand it, CDB stands for “Central Business District” in that bustling metropolis.

According to the article “A man who allegedly stabbed a woman to death in Sydney’s central business district before attacking others on a busy city street with a butcher’s knife was arrested carrying information about terrorist attacks and extremist ideologies on a USB drive.”

So, a killing rampage (one dead) and “terrifying carnage” (one dead, one wounded) and the Aussies are shocked.

What a bunch of pikers! Can you imagine that happening here in the U.S.? Wouldn’t even make the back page of the front section of the newspaper and maybe not even the 6 o’clock news on the telly.

All those people and the wanker didn’t even have a semi-automatic weapon. He could have mowed down dozens, if not more. And the two “heroes” who stopped this lunatic, with a chair and a milk crate, wouldn’t have had a chance. They would have needed, at a minimum, a “good guy with a gun.” Milk crate . . . pft!

What is wrong with Australia? Don’t they even have Wal-Marts? Clearly their deranged gun policies aren’t working.

Have You Ever Heard of Unearned Income?

How do you describe “pure” socialism? For most people it is “the government” (aka “We The People” in the US) owns the “means of production.” So, the government owns all of the businesses, factories, etc. and we all work together to benefit one another. Unfortunately, this ideal too often became totalitarian socialism, in which a political elite took over the system and it served the elite much more than it served the people as a whole. In some modern countries, the idea of democratic socialism seems to be working better.

What brought this to mind is I was reading an interview of an author on the Naked Capitalism website and the interviewer, John Siman, stated and asked the following:

John Siman: You have got me thinking about what economics—political economy—was originally supposed to be: a liberation from feudalism, from greedy rentiers and so the freedom for the common man to enjoy the fruits of his own labor and for the enterprising man to undertake great business projects. We should tax only unearned income!—that’s what the classical economists taught, right? So my deep worry: Are our academic neoclassical economists really latter-day medieval theologians, using arcane learning to uphold the privileges—specifically, to protect the unearned income—of a corrupt elite? After two or three centuries is the Enlightenment over as we enter a new feudalism? (It seems to me that we are already in a new Gilded Age.)

To unpack this (there is a lot going on) you need to know a few things. For one “rentiers” are not “renters” or even landlords per se, they are “people living on income from property or investments.” A good example of such are shareholders in a corporation. They receive dividends or profit on sales from that stock and that money was, for a very long time, referred to as “unearned income,” money earned by means other than the “sweat of one’s brow.” And, “political economy” was the original name for the study of economics, politics referring to interactions of people and economy being “involving money.”

You probably learned about feudalism in school. This was a system whereby “royals” owned the land and, basically, the people who worked it (serfs). They didn’t claim absolute ownership, but serfs were not free to pack up and leave, they were “tied to the land.” And even if they did pack up and leave, there were no “jobs” to be had in nearby locations. It strikes me that feudalism was a form of socialism. “The government” absolutely owned the means of production (including the serfs). This was not benign socialism, this was totalitarian socialism. (Not that the “rulers” didn’t ever do anything for the “ruled.” There were limits to what the “rentiers” could extract. Abuse your serfs/slaves too much, e.g. starve them by confiscating too much of the crops they raised, and they wouldn’t be able to work. And, please, do not try to convince me that having a local “central committee,” as in modern socialism, is substantially different from having a local earl or duke, the “government” in feudal times. “Remote and autocratic” describes both.)

So, as feudalism broke down, capitalism was created. And so was “economics” whose first fruits, apparently, were to craft a “liberation from feudalism, from greedy rentiers and so the freedom for the common man to enjoy the fruits of his own labor and for the enterprising man to undertake great business projects.” (Merchants were the first members of the “middle class,” that is between rich and poor, and widely despised by the elites.) And one of their first ideas was that “We should tax only unearned income!”

This practice balances the playing field, economically, between the rentiers and people who worked for a living. Selling one’s labor is a fine idea, but there is a limit: you only have so much labor to sell. But rentiers are unlimited in the amount of property or investments they can accrue. The well-to-do can become wealthy, the wealthy can become rich, millionaires can become billionaires and I assume we will soon see billionaires become trillionaires. Since wealth can be converted into political power, the scales of politics are tilted heavily in favor of the wealthy. To balance the scales, the early “political economists” established the idea of only taxing that rentier income and not taxing honest labor.

I have written recently (at least I think it was recently) on the disappearance of the term “unearned income” from public economics discourses. (Economists may still use it privately; I don’t know.) The term has basically vanished. And, out of sight, out of mind. The term is obviously connected to the core idea of those early economists, to only tax unearned income, and it flies in the face of the narrative of the wealthy that “they built it,” that they earned everything they have. My favorite example of this thinking was Mitt Romney, who claimed to have earned everything he owns, while at the same time his rich and powerful father (George Romney: chairman and president of American Motors Corporation from 1954 to 1962, the 43rd Governor of Michigan from 1963 to 1969, and the United States Secretary of Housing and Urban Development from 1969 to 1973, etc.) gave him two $2,000,000 “to get started” and access to his influential and wealthy colleagues. (I remember this figure because during my almost 40 years of work as a teacher, I earned about $2,000,000 (both numbers are uncorrected for inflation). If I had been given $2,000,000 to “get started” I would not have had the gall to make the claim Romney does.)

The disappearance of the term “unearned income” from public discourse was no accident. And, if you use the term now, most people will be confused by it. The elites have scammed the system so well, that they have managed to get earned income taxed at a higher rate than unearned income (through the capital gains tax and others)!

So, capitalism was created to protect us from “feudal socialism.” What now can we get to protect us from capitalism and its captive economists? (Economists aren’t evil people, but their field has been captured by the rich. Oppose the rich strongly enough and you will no longer have either a reputation or a college professorship. Economists do know which side of the bread the butter is on.)

August 6, 2019

The Effing Elites, Part . . . I’ve Lost Track . . .

I am reading a lot of history of the Biblical era and I ran across one very interesting take on the elites we refer to as “royals” today. It is from the Book of Samuel in the OT/Hebrew Bible. (I know the two are not identical, the HB being hijacked and edited by Christians to make the OT, but close enough here.)

4 So all the elders of Israel gathered together and came to Samuel at Ramah. 5 They said to him, “You are old, and your sons do not follow your ways; now appoint a king to lead[b] us, such as all the other nations have.”

6 But when they said, “Give us a king to lead us,” this displeased Samuel; so he prayed to the Lord. 7 And the Lord told him: “Listen to all that the people are saying to you; it is not you they have rejected, but they have rejected me as their king. 8 As they have done from the day I brought them up out of Egypt until this day, forsaking me and serving other gods, so they are doing to you. 9 Now listen to them; but warn them solemnly and let them know what the king who will reign over them will claim as his rights.”

10 Samuel told all the words of the Lord to the people who were asking him for a king. 11 He said, “This is what the king who will reign over you will claim as his rights: He will take your sons and make them serve with his chariots and horses, and they will run in front of his chariots. 12 Some he will assign to be commanders of thousands and commanders of fifties, and others to plow his ground and reap his harvest, and still others to make weapons of war and equipment for his chariots. 13 He will take your daughters to be perfumers and cooks and bakers. 14 He will take the best of your fields and vineyards and olive groves and give them to his attendants. 15 He will take a tenth of your grain and of your vintage and give it to his officials and attendants. 16 Your male and female servants and the best of your cattle[c] and donkeys he will take for his own use. 17 He will take a tenth of your flocks, and you yourselves will become his slaves. 18 When that day comes, you will cry out for relief from the king you have chosen, but the Lord will not answer you in that day.” 19 But the people refused to listen to Samuel. “No!” they said. “We want a king over us. 20 Then we will be like all the other nations, with a king to lead us and to go out before us and fight our battles.” 21 When Samuel heard all that the people said, he repeated it before the Lord. 22 The Lord answered, “Listen to them and give them a king.”

So, ole Samuel understood rightly that kings were bad news, but was overruled by Ole Yahweh. Yahweh certainly is in favor of totalitarianism, so why would he have an opposition to kings? And in this case, Yahweh is clearly issuing a punishment on his people for being disobedient to their true king, himself. And, as an exercise, consider what would have happened had Yahweh thundered “Absolutely Not!” At least a human king gives a bit of cover to a totalitarian theocracy (aka someone to blame other than Yahweh).

Any way, my point is this: royals are a pain in the ass and should be dispensed with. They are relic elites at best. Think about how they came about. (Really!)

Typically, some local bully accrues enough muscle to confiscate anything he desired. Part of the crops were confiscated. The most attractive mates were confiscated. The best property was confiscated. And if anyone complained they got hit in the mouth if not worse.

Over time, one or more of these bullies became ambitious and gathered together a war band and took over the other bullies in their neighborhood. Not wanting to actually stay in place and do the work of oppressing the locals, the resident bully was sworn to fealty to the overbully, or if his fealty was suspect, his head was lopped off and another promoted to that office, with the fear of that happening to him supporting his fealty. The local bully then paid tribute to the overbully.

Now, I am not saying that these overlords served no purpose. They did, on occasion, defend the people under their oppression from invading other bullies, but their record in doing this was mixed at best. And, over time, the divine rights of bullies got amplified. The bullies claimed to own all of the land, without purchasing it or establishing ownership by working the land, or . . . just “Mine!” And if anyone complained they got hit in the mouth if not worse. Many also claimed to own the people residing on the land, who became de facto slaves, again by no other expedient than “Mine!”

Collusion between the religious elites and the secular elites gave ordinary people no place to go for alternatives.

Effing elites.

Today’s elites are money enabled. Their power is not divine, although they bribe religious elites to support their secular notions. They bribe politicians to make sure that governmental power is theirs and not “the people’s.” The jigger the rules of wealth acquisition so that their money/power ever increases. For example, Trump’s tax cut for the wealthy and businesses? Capital investment has dipped to a new low just recently. So much for the argument that businesses would invest that money in expanded productivity, jobs, etc. Oh, yeah, jobs were eliminated by those businesses, too. Those businesses did exactly what was predicted: stock by-backs to enrich their shareholders and executives, and more money injected into politics to improve their lot even more.

Effing elites.

My fear is that the only option left to ordinary people involves torches and pitchforks. We seem to be closer and closer to such responses.

Even that old troglodyte Henry Ford knew that enriching his workers just a bit gave him more customers, but the modern elites aren’t willing to share any of their ill gotten gain. They believe they earned it. The divine right of the rich is to believe that they are rich because they are better than you or me. They even have a prosperity gospel now. Effing religious elites.





July 24, 2019

We Don’t Need Regulators, Corporations Would Never Do Anything to Harm Their Reputations

Filed under: Business,Politics,The Law — Steve Ruis @ 8:47 am
Tags: , , ,

The Big Lie is a lie so obviously untrue that people would not accept it unless it became “common knowledge” which it does if the BL is repeated over and over and over.

We have been told by the “De-Regulators” that all of these regulations and regulators are unnecessary, that “The Market™” will take care of all of the bad actors. And, certainly major corporations would never, ever do anything to harm their reputations.

How many times do we need to see this is not only not true, but very, very false?

Read this!

Capitalism gone wrong: how big pharma created America’s opioid carnage

The biggest drug epidemic in the U.S. created not by human weaknesses but by the profit motive. (Read this sentence again!)

July 13, 2019

Does This Blog Need a Different Title?

When I began this blog, mainstream opinions regarding there being a class war in the U.S. were little better than scoffing at the idea. It seems now that most people accept this class war as a fact. I began this blog with the intent of just establishing the war is real, but I could continue, focusing on the conduct and disposition of the class war.  Of late, I have been writing more frequently about religion (specifically Christianity as that is the religion I know most about) in that I believe the religion plays a role in the class war.

Religion, specifically Christianity in the U.S., plays a role in our current class war because mainstream religions have always worked hand in hand with secular state power for their own benefit. Religions that do not accrue state power have a hard time surviving. And a religion acquires state power is by exhibiting practices of which the secular powers approve. The example I use often is that Christianity supported the institution of slavery (scripture still does!). Had it not, it never would have been adopted as the state religion of Rome and would not have had Rome’s power to expand the church’s power for over a century. (Does no one else find the name of the Roman Catholic Church ironic? The Messiah (Jesus?) was supposedly coming to remove Rome’s boot heel from the necks of the Jews, then under occupation by Rome. Some actually called them the enemy! Apparently the enemy won.)

Some may argue that the history of the United States belies my conclusion. That in the U.S. state power is forbidden to be used to support or oppose any church. Ah, that explains the tax free status of churches and all of the other laws exempting churches and church leaders from having to comply with state or federal laws. Discriminate against women in your hiring practices? This is fine if you are a church. Discriminate against people of other faiths or—gasp—no faith at all, in your hiring practices? This is fine . . . if you are a church. Discriminate against gays and lesbians in your hiring? This is fine if you are a church. A governmental position of neutrality with regard to churches would mean they would all be taxed the same, not “not taxed at all.” There are many other laws that churches violate with impunity just because they can.

So, I still hold that churches support the status quo when it comes to the secular leaders as they have accrued some political power and they do not want to lose it. And, in reality, some of these churches have gone on the offensive, wanting more power than they have now, trying to make the case that we are a Christian nation, a ludicrous claim. (The Bible does not support any kind of democracy in any way, shape, or form. Nor does it support the forbidding of cruel and unusual punishments or any other of the cornerstone concepts of the Constitution. Sheesh.) They have also arranged to have legislation introduced exempting churches from more and more of our laws.

So, if you have an opinion, does this blog need a new title? (And if you say “yes” do you have any suggestions? I suspect JB would call it “Steve’s Snark” or “Steve’s Ignorance.”)

I Have Said This Before But Hearing It Again Always Helps

Filed under: History,Politics — Steve Ruis @ 11:16 am
Tags: , ,

The cost of liberty is eternal vigilance is, I believe, the correct assessment.

Is There a Global Future for Unions?

July 2, 2019

The Absurdity of Maximizing Shareholder Value as a Business Goal

I have written about this before, but this post over at Naked Capitalism drives the nails home into the coffin of this very, very bad idea. (Being a Zombie idea will make this turkey very hard to kill.)

Rebel Economist Breaks Through to Washington on How Shareholder Value Theory Rewards the Undeserving


June 9, 2019

I Have Said It Before . . .

. . . and I will say it again. Say what?

The Guardian ran a story today “Can Trump win in 2020? This Pennsylvania county may be an indicator.” The subtitle for which was “Northampton county, Pennsylvania voted twice for Barack Obama before flipping for Trump – and could decide whether Trump gets a second term” What? A county in Pennsylvania voted for Barack Obama for president . . . twice . . . and then voted for Trump? What Red-Blue scenario, what White-Black scenario, what Rural-Urban scenario makes sense of that?

I’ve said it before . . .

The voters in this country were so fed up with the status quo (the rich get richer, the middle class and the poor get ground under their boot heels) that they voted in our first Black president. That should change things, no? Apparently not enough as Republican-Democrat infighting made sure “Hope” and “Change” were both little and infrequent. So, if that message didn’t get through, maybe the message of Donald Trump would.

Why don’t we try offering what the voters want? Candidates who aren’t bought and paid for by Wall Street and the major corporations and who will identify the will of the people and act upon that.

Novel idea, eh?

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