Class Warfare Blog

September 17, 2017

Why We Do and They Don’t Want National Health Care System

We are talking here about the healthcare systems such as Canada and France have as examples, you know, all of the other advanced western nations. Names such as Medicare For All have been bandied about for such a system here in the U.S., which is just one such option.

Here in a nutshell is why we want to do this and the conservatives and their paymasters do not:

Per Capita Spending Health Care 2015
United States: $9451
Canada: $4608
France: $4407
Japan: $4150
United Kingdom: $4003
Miraculous Finland: $3984

When we see this list, we see “Gosh, we could have quality healthcare for only about half of what we are spending now!” and “We could use some of what we save to make sure that all Americans are covered.”

When they see this list, they see “Oh my gosh, look at the profits we will lose under national healthcare.”

We spend twice what most other countries spend on healthcare and only the very rich get a commensurate healthcare outcome. Most people spend more and get less than they get in other countries. For those of you who think Canada and France do not have quality healthcare systems, you might want to consider how you learned that … Fox (sic) News, maybe? We have a higher rate of infant mortality than most of those other countries. We have shorter life spans than people in those other countries. The middle class incomes in those other countries often exceed ours, especially when you include the fact that we pay so much for healthcare. We also have millions of people with no health insurance at all, who simply go to a county hospital when they are very, very ill and plead for charity care. In the meantime, those sick people spread diseases and die much younger than they could have.

Whatever your position, do realize that the opposition to “socialized medicine” comes from those making megabucks off the current system: doctors (lead by the AMA, so their faces don’t get shown), Big Pharma (surprise, surprise) and, of course, the health insurance industry.

The insurance companies are playing a game. Through accounting procedures, they are claiming big losses through Obamacare. These losses are being used to argue for large premium increases under the system. But if you look closely, these very same corporations are claiming record profits and their CEO’s are receiving big bonuses. There stocks have soared even higher than the record stock price surges under President Obama. Huge losses, record profits, skyrocketing share prices! Some companies made so much profit that they exceeded the 20% allowed under Obamacare and had to issue refunds! This can be compared to the 3% total overhead for Medicare.

Look at that list again and ask yourself, as Ian Welsh has over and over: why don’t we see those numbers on the news over and over and over again … instead of never. Who controls the news?

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August 12, 2017

I Don’t Get It

If you look at the updated somewhat notorious graph below, you can see that worker productivity has been detached from worker wages starting in the 1970’s. This was the result of a concerted campaign by the very wealthy to suppress wages by suppressing labor unions, getting tax code changes in their favor which transfer tax liabilities off of them and onto other Americans, even by suppressing voting.

This has created a great deal of economic distress in the bottom 90% of economic Americans and will result in a backlash. What I do not understand is the strategy. Going from astonishingly rich to fucking rich changes the lifestyles of those rich people exactly how? Is it just getting their way, at least for the while until the backlash, that makes this worth doing?

Even Henry Ford understood that if you paid better wages, you would get much of that back through one’s employees becoming one’s customers. Hell, these rich people invented the company store, where laborer’s wages got sucked back to the employer through required purchasing of the goods to survive. Those stores are no longer allowed, but Henry Ford knew that his employees, once they had the wherewithal to purchase a car, were going to buy one of his because of loyalty generated through his paying better than normal wages to his workers. (It is called gratitude.)

But, the current crop of rich bastards would rather strip away the ability to buy the goods their companies produce and, what, sell those goods overseas? When the pitchforks and torches finally end up circling their gated communities, will the plutocrats wonder why their employees aren’t more loyal to them? Are they that stupid? Do they think we do not see what they are doing?

June 24, 2017

We Don’ Need No Regyoolayshuns … Education Edition

Check out “Multi-state investigation alleges Akron-area charter school founder bilked millions from parents, students, taxpayers” (Akron Beacon Journal/Ohio.com).

The “pro choice” education lobby seems to be more of a “pro-corruption” advocacy group as more and more of these scams are popping up. Politicians, paid for by the scammers, insist no public oversight is needed. After all it is just money we are giving them, and the responsibility to teach our children. Nothing to see here, move along.

June 22, 2017

Trumpcare Will Remove Drug Addiction Treatment Because …

According to Nicholas Kristof’s NY Times column today:

A Times investigation published this month estimated that more than 59,000 Americans died in 2016 of drug overdoses, in the largest annual jump in such deaths ever recorded in the U.S. One reason is the spread of fentanyl, a synthetic opioid that is cheap and potent, leading to overdoses.

About as many Americans are expected to die this year of drug overdoses as died in the Vietnam, Iraq and Afghanistan wars combined.”

Read that last sentence again and then line it up with the GOP plan to remove addiction treatment from insurance policy requirements.

Now you know where their hearts are: the GOP is only interested in tax cuts for the wealthy. The rest of us, very, very little.

May 20, 2017

An Argument for a Minimum Wage

There have been myriad studies about the impact of having a minimum wage. Some indicate that there is no particularly strong linkage between creating a higher wage for low wage workers and some indicate that a rise in the min wage causes unemployment.

The politicians arguing against a min wage use a very simplified argument: namely that if employers have to pay their workers more, they will only be able to hire so many workers, mostly fewer. This is way too simple in thinking this. For one, if people are paid more money, they then spend more money (what goes around, comes around) which is good for business. There are many more facets to this issue.

If labor costs go up, and they have myriad times due to labor contracts, etc. how, oh how, do companies cope? (Yes, I am being sarcastic.) The amount of money that goes to labor in any company is not a fixed amount or even a fixed percentage of the company’s budget. There are many, many ways that those increased labor costs can be offset. For one, you can raise prices for the goods created. You could decrease profits. You could find other ways to reduce operating costs (reduce energy costs by going solar, etc.).

Knee jerk responses to these actions abound, of course. “If we raise prices, we will reduce sales!” Really? Companies never raise prices, then? C’mon, get real. Just raising prices alone, of course, is the lazy way to deal with increased labor costs; a combination of actions would be better.

Most of these minimum wage discussions are shallow and politically motivated. Basically, the opponents of min wage increases give minimal arguments and only add to them if we don’t accept (aka we reject vehemently) their overly simplistic argument.

Let me explain a real reason for min wage increases. Minimum wage increases are justified for the simple reason is that business interests (aka the plutocrats) have conspired to suppress wages for a long, long time. This involves bribing politicians to undermine union powers and privileges, delaying minimum wage increases, changing the laws in favor of employers over employees, etc. They have been particularly effective over the past 40 years (see the chart below as to the effectiveness of wage suppression over the past 40 years). The only power source of ordinary people to oppose these powerful business interests is government. The cabal wants wages low (too low) and so government must set a floor on wages. It is not simple but at least that is the political dynamic.

If you want to see this playing out right now, consider the current stance of the GOP. The GOP has been the champion of local rights for a long time. Education, for example, should not be a federal issue, but should reside in the states, with the states deferring to local communities and their school boards. So, what has been the GOP response to cities who have enacted their own min wage increases? GOP dominated states are passing laws to roll back those democratically achieved minimum wage increases and to bar such local increases in the future. Local control doesn’t mean a fig when the GOP’s paymasters issue directives (You will keep wages down, or else).

April 26, 2017

Dishonesty About Taxes

The Current Administration wants to cut business taxes. They say the current rate, 35%, is too high and a 15% rate would be better for one and all.

Ah, please cut the crap.

When you add up all of the corporate taxes and income for 2016, it turns out that corporations paid about 14% as an effective tax rate. Individuals paid an effective rate of about 13.5%.

The reason these actual tax rates are much lower than the statutory marginal tax rate, is the rate most often stated is the maximum rate which doesn’t kick in until you have made a shitload of money. Even the 28% personal marginal rate doesn’t even begin until you make just under $92,000 dollars in any particular year. On the first bit you pay 10%, the next bit, you pay 15%, after that you pay a 25% on the amount above that amount up to about $91,000, as mentioned. Everybody pays this way. The only way someone can pay close to the maximum rate is to make a shitload of money … and have no deductions.

“‘In each year from 2006 to 2012, at ‘least two-thirds of all active corporations had no federal income tax liability.’ So much for corporations paying their fair share.”

The US Tax Code is a bloated document, not because of statutes that address personal income but because of the myriad tax breaks that sometimes only single companies get. This is why businesses spend money lobbying Congress, it really pays off in tax perks. Somebody recently calculated that for each $1 a company spent in lobbying Washington, it got a return of $28. That is one hell of an investment! According to the GAO “In each year from 2006 to 2012, at least two-thirds of all active corporations had no federal income tax liability.” So much for corporations paying their fair share.

There used to be a tax principle that said that people who make money by investing money (the “you know who”) should pay more in taxes than people who made money by the sweat of their brow. This has been reversed so that if you work for a living, you pay more in taxes than those who simply move money around (proportionately, not absolutely). Another tax dishonesty: “The rich pay more in taxes that you!” yeah, 10% of 100 million dollars is a lot more money than 10% of $50,000 but it is still 10%.

It used to be the case that companies paid more tax than individuals. That was back before the companies realized that they could buy the government and stack the deck in their favor.

These are same people who back the claim that corporations are people. Now they want to establish that corporations are better than people. (They worship them and want us to also.)

April 20, 2017

Why Conservatives Used to Fear Big Government and Now Only Pretend To

I used to believe that Conservatives opposed government because government was the only social institution that had the standing to oppose anything they wanted to do. I thought the Party of Big Business was just taking care of business.

But I was wrong and I have to apologize to those previous Conservatives. It is not as simple as I made it out to. So, if there are any Conservatives out there reading this, I apologize for underestimating you.

Here’s what I think the situation is now.

You Know Who

Back in the late 1800’s, Alexis de Tocqueville wrote in Democracy in America:
I seek to trace the novel features under which despotism may appear in the world. The first thing that strikes the observation is an innumerable multitude of men all equal and alike, incessantly endeavoring to procure the petty and paltry pleasures with which they glut their lives. Each of them, living apart, is as a stranger to the fate of all the rest — his children and his private friends constitute to him the whole of mankind ; as for the rest of his fellow-citizens, he is close to them, but he sees them not — he touches them, but he feels them not ; he exists but in himself and for himself alone ; and if his kindred still remain to him, he may be said at any rate to have lost his country. Above this race of men stands an immense and tutelary power, which takes upon itself alone to secure their gratifications, and to watch over their fate. That power is absolute, minute, regular, provident, and mild. It would be like the authority of a parent, if, like that authority, its object was to prepare men for manhood ; but it seeks on the contrary to keep them in perpetual childhood : it is well content that the people should rejoice, provided they think of nothing but rejoicing. For their happiness such a government willingly labors, but it chooses to be the sole agent and the only arbiter of that happiness: it provides for their security, foresees and supplies their necessities, facilitates their pleasures, manages their principal concerns, directs their industry, regulates the descent of property, and subdivides their inheritances — what remains, but to spare them all the care of thinking and all the trouble of living? Thus it every day renders the exercise of the free agency of man less useful and less frequent ; it circumscribes the will within a narrower range, and gradually robs a man of all the uses of himself. The principle of equality has prepared men for these things : it has predisposed men to endure them, and oftentimes to look on them as benefits.

After having thus successively taken each member of the community in its powerful grasp, and fashioned them at will, the supreme power then extends its arm over the whole community. It covers the surface of society with a network of small complicated rules, minute and uniform, through which the most original minds and the most energetic characters cannot penetrate, to rise above the crowd. The will of man is not shattered, but softened, bent, and guided: men are seldom forced by it to act, but they are constantly restrained from acting : such a power does not destroy, but it prevents existence ; it does not tyrannize, but it compresses, enervates, extinguishes, and stupefies a people, till each nation is reduced to be nothing better than a flock of timid and industrious animals, of which the government is the shepherd.

Sorry for the length of that quote but I think the vision is important, and obviously it was had a long time ago and probably before de Tocqueville. In the 1800’s the American experiment was still quite an odd affair. People governing themselves with no king or emperor? Preposterous. It took World War I to break the pattern of the divine rights of kings. But while Americans were afraid of despots taking over then as now, that is true fascism, de Tocqueville observed that it is quite possible that The Government Itself could become a substitute despot. And de Tocqueville was not alone.

Many Conservatives feared “Big Government” back in those days for that very reason, a good reason. And compared to the size of “government” now, it was puny back then. This anti-Big Government trope became a cornerstone of Conservative ideology that has lasted to this day—Do not let government grow to the point that our lives are ruled by it. So, the insistence that the Founders of the Constitution were small government advocates (most were not) came from there and a lot of other stuff.

But the New Deal, combined with the expansion of the federal government as a response to World War II drove the Conservatives a bit over the edge. A number of them decided that “if you can’t beat them, join them.” Instead of actually opposing big government, they decided that while the posturing would continue, the goal was the capture of the government and the running of the government for their ends into the future.

“So, while it looks like Conservatives fear Big Government,
they do not really fear it any more.
They have accepted that it is despotic,
that they couldn’t defeat it, but they could co-opt it.”

So, while it appears that Conservatives oppose “Big Government” only because it is the only social institution left that can oppose the will of Big Business, that is only a scrim, a stage setting. The monied interests (rich individuals and corporations) have already purchased our governments (sufficient of them in number to constitute a majority). They own the GOP. They have purchased most of the Democrats. They own the Courts. Now “shrinking of the government” is only a guise for the rubes. The drive to “reduce the amount of government regulation” (cue the voice of Foghorn Leghorn) is not to “reduce the size of government,” it is to get government out of business pockets. The drive to have tax reform is not to “reduce the size of government” but to cut taxes on the rich, so they will have even more money to buy governmental interests.

They are now officially, but not openly, okay with big government. (Most people didn’t notice that under the last six presidents, the government grew more under Republicans than Democrats.) Now with regard to government, it is the more the merrier, as long as it address their needs. Can you imaging the howling if the federal government picked out one business, say FedEx, to “defund” and to pull support from as they have done with Planned Parenthood? The howls could be heard on the Moon. But Planned Parenthood? It is okay for the federal government to attack it … now. You will see more of this.

So, while it looks like Conservatives fear Big Government, they do not really fear it any more. They have accepted that it is despotic, that they couldn’t defeat it, but they could co-opt it.

Until we, The People, deal with the oligarchs and roll back despotic government, it will continue to hang like ripe fruit in front of the eyes of rich men and corporations who know what to do with it. And it is for sale, no matter what we might wish.

April 11, 2017

If You Want to Understand Why American Education is Fucked Up—Read This

Filed under: Education,Politics — Steve Ruis @ 12:42 pm
Tags: , , , ,

(Hint: Follow the Money)

https://gadflyonthewallblog.wordpress.com/2017/04/08/standardized-testing-creates-captive-markets/

April 6, 2017

I Don’t Get It

The definition of “it” in the title is probably very, very long (very!). In this case it is our current debate about healthcare.

There is continuing support for certain functions of government to be paid by the government. Unlike knuckle-dragging conservatives, I do not see “government” as being some outside agency closely representing a skin cancer (something you want shrunk and or carved out), but as a representative of “us.” We are completely fine with “single payer” K-12 education. Citizens and non-citizens alike can register their children to attend a neighboring school and there the children receive an education with no further costs. (Yes, I do know there are myriad costs associated with a child in school, but those are not directly related to the education they receive.) This is, accurately, not a “single payer” system as multiple government agencies are involved, so maybe a better description is “government paid” for this schooling. We also have many other services that are “government paid.” For one, the military. For another, our government offices. When you go to your local councilman or alderman’s office for information or a complaint, there are no fees associated with those services. In all of those cases, the “government”—remember that means “us”—picks up the full tab.

The argument goes that those services are “essential,” that is we all need them and money should be a barrier to whether or not you receive those services.

Oh, there are also the police, fire services, the courts, etc. There are many things that fall into this category of “things we all pay so everyone can partake equally.” In some cases, this is the “many” protecting itself from the “few.” Many vaccinations are low cost, even free, to avoid the spread of diseases.

I don’t get why health care is not one of those things.

I understand that people, especially politically conservative people, have bought into a capitalistic “pay as you go” culture, uh, well, kinda sorta. The biggest proponents of “individual liberty/individual responsibility” are not all self-made people, many inherited money. If Donald Trump had invested all of the money he inherited in stock market index funds, he would have four times as much money now as he claims to have, according to some accounts. (So much for him being a good businessman, he has managed to lose only three quarters of his potential net worth. He is, at best, a mediocre businessman.) The Koch brothers inherited millions (and built upon those, yes). Mitt Romney, who claims that nobody helped him, was given two million dollars of “seed money” to help him get started as well as being given access to his really well-connected father’s associates. The Walton clan … well, daddy made the big pot for them.

For those without great wealth in this group are people who received help along the way from government (aka “us”) agencies. Help with their educations, help with business loans, help from other government agencies, etc.

But them poor people, they lack drive and ambition. They should go out and start a business. Really, you mean those business startups that have a 90% failure rate after three years? Where would they get the money to take that very risky venture? The banks? Wall Street? Venture Capitalists? (Sorry, laughing so hard my sides are aching.) If you haven’t noticed, over the last 30-40 years, businesses have stopped investing in their own business. They have accumulated trillions of dollars of cash reserves that are just sitting there. So, these are the people poor people are to emulate? (Step 1 Pile up a mountain of money. Step 2 Sit on it. Neoliberal Business Practices 101)

Poor people need to go out an get a job, then? Oh, do they mean the jobs conservatives have suppressed wages on for decades so they do not pay enough to meet a person’s expenses? Those jobs? All of the anti-union, anti-minimum wage rhetoric is not coming from poor people, it is coming from the same conservative ass holes who are insisting that everyone should “pay as you go.”

I do not want single-payer healthcare. (Currently I have Medicare and a Medicare supplement policy, and I pick up the slack those two do not cover, so there are at least three payers there, certainly at least two.) I want government paid health care. It is at least as important as an education for our kids, if not more so.

There’s more but my spleen just gave out.

* * *

Poverty is not due to a lack of character, it is due to a lack of cash. (I don’t know who said this first.)

March 20, 2017

The New Administration’s Budget

As vague descriptions of the new administration’s 2017-8 federal budget are being circulated, people are shocked, shocked I tell you, that that proposal eviscerates the Environmental Protection Agency and myriad other federal programs that actually help people (Meals on Wheels … gone, Support for Planned Parenthood … gone).

I do not see how anyone could be shocked at these long promised moves. This is the political party that has railed against and taken every opportunity to diminish labor unions, organizations that only exist to protect workers and their rights. It has also railed against Social Security and Medicare, the two most successful programs ever created to avoid poverty, especially in senior citizens.

They have reasons for doing these things, but if you watch carefully, you will see their lips moving, a clear sign they are lying. They are gutting these social programs for one big reason, their paymasters desire it. All of these efforts make working class people more compliant, less likely to strike back, and place as little opposition to what the plutocrats wish to do as possible.

The GOP said it wanted to, it tried to do it before, and now it is doing it. If you are surprised, you are an idiot.

Let me now … warn you in the most solemn manner against the baneful effects of the spirit of party….
It serves always to distract the public councils and enfeeble the public administration.
It agitates the community with ill founded jealousies and false alarms,
kindles the animosity of one part against another….

George Washington, Farewell Address, 1796

In this new era of globalization, the interests of companies and countries have diverged.
In contrast with the past, what is good for America’s global corporations
is no longer necessarily good for the American people.

Ralph Gomory, Former IBM VP

Wake up people, the corporations own this administration.

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