Class Warfare Blog

July 11, 2018

It Figures

When the Trump tax cuts were imposed (you remember don’t you: the small temporary tax cuts for us and the large permanent tax cuts for corporations and the wealthy) it was claimed by the Repubs that the money saved by the corporations would end up spurring growth, even result in raises for workers. (Right, those results were to be delivered via unicorn, I believe.)

It was pointed out that the last time such a tax cut was implemented, corporations spent the bulk of the savings in buying back shares of their own companies. Well, surprise, surprise, the same thing happened this time. (Who’d have known it could be this complicated?) In a post on the Naked Capitalism web site (Michael Olenick: Update Confirms That Share Buybacks Are Still Corporate Suicide) extensive studies on the effects of such buybacks show that “not only do buybacks not lead to growth in a company’s market value, they are strongly correlated to a declining market value.”

In other words, the effect of their behaviors is not to “grow” the companies but actually to “shrink” them! To quote from the piece:

Corporate executives and directors are apparently bereft of ideas and the confidence to make long-term investments. Rather than using record profits, and record amounts of borrowed money, to invest in new plants and equipment, develop new products, improve service, lower prices or raise the wages and skills of their employees, they are “returning” that money to shareholders. Corporate America, in effect, has transformed itself into one giant leveraged buyout….

And since “everyone” is doing it …

The most significant and troubling aspect of this buyback boom, however, is that despite record corporate profits and cash flow, at least a third of the shares are being repurchased with borrowed money, bringing the corporate debt to an all-time high, not only in an absolute sense but also in relation to profits, assets and the overall size of the economy.

This not only burdens those corporations, but also drags down the entire economy.

So, if these buybacks are not what anyone might call the best use of those tax savings, why are they being done?

Okay, boys and girls, whenever anything political happens what are we supposed to do? (Follow the money!) That’s right! So, who benefits from these buybacks the most? It turns out that … wait for it … it is the corporation executives who actually benefit the most. You see the buybacks inflate the prices for the corporation’s stock. CEO’s and their ilk are now being remunerated largely via stock options. And, corporation executives constitute the largest segment of the 0.1% of “earners.” And that class of “earners” is the one making the bulk of political contributions currently. Does the picture now come together for you?

Think of the corporation executives as sort of modern pirates. (Can you see the eye patches and hear the “aaaarghs”?) These executives started out as treasure ship captains but, well the temptation was too great, and they stole their own ships. Well what is the government’s politicians to do? When they sailed into action to recapture the ill gotten gains, they received handsome “gifts” from the pirates to the extent that they have become dependent upon those “gifts” and now seek to facilitate the pirate’s behaviors. The government stopped pursuing the pirates for taxes and actually invited them to submit their ideas on how the government could be run better.

And all of the rich assholes lived happily ever after.

When are we going to wake up? Stock buybacks should be illegal or strictly regulated (as they used to be). They are tools to manipulate the stock market by insiders, for Pete’s sake! But when we ask our politicians what the intend to do all we get is “Arrgh!” and a wink from under an uplifted eye patch.

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June 16, 2018

Lies, Damned Lies, and Economics

Apologies to Mark Twain for stealing his phrase and twisting it to make my title. (His line was that their were “lies, damned lies, and statistics.”

Here are a couple of paragraphs from a recent post over at Naked Capitalism:

“A standard recommendation given to late-industrializing economies by the economic advisors of the World Bank and the International Monetary Fund has been to refrain from imposing regulations on the labor market, or if such regulations are already in place, to abolish them.”

“In this view, labor rights and labor protection are more likely to create additional unemployment and informal-sector under-employment, particularly of unskilled workers or labor force entrants, than lead to higher wages and better working conditions. Right? So, esteemed policymaker, what you should do is simple: reduce already existing employment protection, resist those siren’s calls to higher minimum wages, and curb regulation. Later, once your economy has developed, you can bring back some of those “European-style” luxuries. After all, they are good for social peace.”

“Well, this story is as wrong as it is ubiquitous.”

If you want to learn more see Who Says Labor Laws Are “Luxuries”?

If you want to know who economists serve today, I urge you to follow the political dictum: Follow the Money. As to who the World Bank and the IMF serve, well that has been apparent from the get-go. They are like the charter schools who are saying they are serving minority children when all they are really doing is lining their pockets.

Oh, and while the WB and IMF are prattling their twaddle about the dispensability of labor protections, you might want to take notice that that is the program being executed here in the U.S. for the past 50 years. The abolishing of labor protections is not just for “late-industrializing economies,” it is good for all! Follow the money. The money going into the pockets of economists is coming primarily from one source: those who already have a great deal of money and for whom that is not enough and are willing to step on the necks of anyone in their way to even greater wealth.

 

 

June 3, 2018

Another “Truth” of the Recent Tax Cuts Bites the Dust

Another “truth” (aka lie) that was used to sell the Republican tax cuts has been laid to rest. That “argument” was that corporations will take their tax savings (the really large ones as compared to the pittance you got) and use it in part to increase the wages of their workers. Wages have either been stagnant or gone down for working class people for decades. I quote one of the post’s quotes: “….The moderator asked the panel whether there would be broad-based wage gains again. ‘It’s just not going to happen,’ [Troy] Taylor, [CEO of the Coke franchise for Florida,] said. The gains would go mostly to technically-skilled employees, he said. As for a general raise? ‘Absolutely not in my business,’ he said.”

The gains from the tax cuts went to executives and to shareholders in stock buybacks (which raise the value of the shares still being held) and the bulk of all stocks are help by the wealthy.

Read all about it: More Evidence of Increasing Deflationary Pressure on Wages

May 31, 2018

The Insidiousness of Neoliberalism

aka The Empire Strikes Back

It may end up being a great irony but the grand American Experiment, the first major attempt at modern self-government (We don’t need no stinkin’ royalty.”), may end up having been created under a misapprehension.

When the U.S. Constitution was created the “founders/drafters” assumed (there’s that word again) that the “people” in power, running the government for “the People,” would be folks just like them: wealthy landowners who had the education and the time to apply their experience and powers of thought to the enterprise. I imagine that it was quite a shock to them when in short order, the propertied, wealthy (male) class was eschewed for politicians of the “middling” sort (merchants, craftsmen, you know “middling” types). I love the sheer disdain embedded in the term middling.

Well, never mind, the natural superiority of the wealthy class will win out, plus there was money to make in expanding the borders of the country and reaping the harvest provided by their god. Just clear off the Indians and bring in the salves and voila! When that was fairly well done, the wealthy got back to wealth accumulation in the forms of gold and property resulting ultimately in the Gilded Age of the late 1880’s–1890’s. Labor was oppressed, racism was rampant, women were subdued, and technology was creating opportunities to make money hand over fist. There were so many immigrants seeking work that wages were so low that the wealthy had servants galore. Gosh, can it get any better than this?

A small hiccough fell into the process of elevating the rich, and keeping them elevated, in the form of the Great Depression and World War II, the aftermath being a common understanding in ordinary Americans that “we were all in this together” and paying attention to the common good as opposed to solely individual rights was “a good thing.” That couldn’t be allowed to continue, of course, as that attitude was blocking the return of the rich to their rightful place of guiding society (for their own benefit, of course). The New Deal had to be remade into the “No Deal” of Donald Trump.

Then along came neoliberalism (beginning slowly in the early twentieth century, a horse the rich could ride where they wanted to go (back to the top). Neoliberalism exalted the individual, eschewed any kind of collective action by citizens save the military and police (to protect wealth from theft) and courts (to protect contracts). Free markets were the mechanism that would deliberate societal concerns, those and the innate actions of individuals as economic actors with free will (and greed). Think Ayn Rand here. Think the Koch brothers.

“Realize that the neoliberals are not working toward their ideal world, they are putting the finishing touches on it right now.”

Neoliberalism involves the elevation of individuals and the diminishment (or elimination) of collective action and any responsibility to the environment, the future (our children), the body politic, or people in general. Corporations that used to have major goals like “to be good citizens in their communities,” now are guided solely by the goal of increasing shareholder value, a concept that is bogus in the first place but serves the goals of neoliberalism, so it was elevated.

This is becoming hardwired into our culture. While I am very grateful for all that has been done to make my life what it is, via a quite inexpensive education down to a system of roads that encourages me to travel, the idea of gratitude is being reduced to “acknowledgement of a debt,” something only losers would acknowledge. The idea of debt forgiveness has been eliminated from many branches of our culture, especially Christianity (a long term effort). Consider the Lord’s Prayer. The specific variants I address are those which say “and forgive us our debts” versus those who say “and forgive us our trespasses.” In the ancient world debt jubilees were quite common, a period at the end of which all debts had to be settled or forgiven. It was hard-wired into Judaism but struggles to find any footing in Christianity or the modern world. Debt forgiveness was eliminated along the way in favor of debtor’s prisons and “pounds of flesh” and the IMF.

Neoliberals prefer the version of the Lord’s Prayer that uses the word “trespasses” (surprise, surprise), but I remember my mother saying the prayer in church, using the word “debts.” A 2000 year old argument that neoliberals have come down on one side of.

Since individuals are paramount, only the “deserving” warrant government help and there are very few of those in neoliberal minds. Blacks are shiftless and dangerous “takers.” Hispanics are lazy and untrustworthy, etc. Both breed too much.

In neoliberalism capitalism is exalted while removing all obligation of capitalists to the larger society (via the cult of shareholder value) as mentioned. “Free markets” and “competition” are promoted but the neoliberals really prefer market capture (think of Microsoft in its boom days, not quite a monopoly but close enough, and all of its anti-competitive actions) with government protection thrown in (think of the bank bailouts of 2008-9).

The foot shoulders of this movement have primarily been Republicans, you know, the “Family Values” proponents. To them, though, a family is lead by an individual, a man of course, making the family an extension of an individual. All of their “family values” stem from there … well as long as the individual men acknowledge the authority of a higher power, for whom the wealthy are a stand in and for whom all of the major religions work.

“The neolibs claim to want to shrink big government, yet they never actually do it. Governmental power is how they will enforce their will over the masses. They do not want less of it, no matter what they say.”

Privatization of public enterprises (schools, post offices, military, etc.) were initially lauded because “government = bad” but when that argument didn’t fly, they carried the water on this effort claiming the government was inefficient, that private ownership and competition would make for a more efficient effort. They ignored the fact that competition creates winners and losers and when it came to our children and delivering the mail, we didn’t want winners and losers. All of the data, so far, have shown the efforts to privatize schools have been less than successful, more costly, and worse, rife with corruption, so evidence is being ignored over ideology (and campaign contributions). The point of strategies like privatization, though, are not just about a preference for the private sector over the public sector, the goal of these strategies is to radically alter power relations, weakening pro-public forces and enhancing the lobbying power and commitment of the corporations that take over public services and resources, thus advancing the plans to dismantle democracy and make way for a return to oligarchy. The majority will be held captive so that the wealthy can finally be free to do as they please, no matter how destructive.

Neoliberalism is, at its core, anti-democratic.

And if you want to see the world as these oligarchs see it, all you need do is open your eyes. When Black citizens in Missouri protested police brutality, they were met with riot police and tear gas and arrests and dogs and prosecutions. But when white supremacists staged a protest rally, the police attacked those opposing the protest. Neoliberals definitely see things in black and white terms. Similarly there are myriad examples of polls of voters identifying things like laws requiring universal background checks to buy guns, but on which Congress still acts to benefit their donors, like the NRA lobbyists. The chances of getting legislation passed that was requested by poor people is zero and by rich people, near 100%. But realize that the neoliberals are not working toward their ideal world, they are putting the finishing touches on it right now.

As additional proof, look at state power being used to reduce state power. If the Republicans are in charge, they use the federal government’s power to restrict the state’s powers and the state’s powers to restrict local government’s power. In Oklahoma, fracking was causing hundreds if not thousands of earthquakes. Several local governments passed rules that limited the rights of frackers in their municipalities until the science of the earthquakes could be pinned down and fixed. The response? The Oklahoma legislature (and Texas, and …) passed a law forbidding the local governments from intervening and the frackers kept working. Localities pass a $15 minimum wage and some states respond by withdrawing the power of the munis to do that.

Neoliberalism is a-n-t-i-d-e-m-o-c-r-a-t-i-c, boys and girls.

The neolibs claim to want to shrink big government, yet they never actually do it. Reagan didn’t do it. G.W. didn’t do it and D.T. won’t do it. Governmental power is how they will enforce their will over the masses. They do not want less of it, no matter what they say.

If I may quote a recent book author:

The United States is now at one of those historic forks in the road whose outcome will prove as fateful as those of the 1860s, the 1930s, and the 1960s,” writes Duke Historian Nancy MacLean. “To value liberty for the wealthy minority above all else and enshrine it in the nation’s governing rules, as Calhoun and Buchanan both called for and the Koch network is achieving, play by play, is to consent to an oligarchy in all but the outer husk of representative form.

Neoliberalism is a cult of the individual in a collective enterprise (one man, one vote, no?). It is no surprise that those who advocate “we each go it alone” are those best equipped to do so (the wealthy). The bigger question is: will we let them get away with it? We have so far.

May 25, 2018

Money in Politics … Again

We are less than a year away from a national election, so it is election season again (as if it were ever not election season). As a consequence of the “important” elections (as if they were ever not important), I have been receiving requests for funds from politicians from all over the country.

I must ask, in all seriousness, what right do I have to try to influence elections I do not get to vote in? Why is being a political busybody so acceptable to our system? Since the SCOTUS has declared money to be political speech, I am free to speak, but why am I encouraged to involve myself in determining other people’s representatives through monetary donations?

Would it not be more sensible to leave a state or political district alone while they select the people they want to represent them, while not having to wade through the opinions (aka dollars) of those who are not stakeholders, those who will not be represented by whoever gets elected?

As is often quoted, opinions are like assholes, everyone has one, but why should my opinions have any weight at all in an election in Utah, for Pete’s sake? If I am rich, why should I be allowed to buy amplified speech in a senatorial election halfway across the country? Those who put up the money, and most of it comes from corporations and the wealthy, well, they get served first. In our system, they are currently the only one’s getting served at all.

So, why do we allow money to flow freely across political boundaries? This is not a foreign idea. We do not allow foreign governments or corporations to send money across our national borders into politician’s election coffers. We should extend this to all political districts’ boundaries, not just the country’s borders.

Money is not political speech by definition, it is only when it is used in a certain context that this applies. We are allowed to establish those contexts. We had better do it soon because the wealthy have bought up most of the politicians, the Supreme Court, and the Executive Branch of the federal government as well as most of the state house representatives. If we cannot do this, then our “votes” merely give cover to the plutocrats running the country for their benefit and we should just stop voting because we are doing more harm than good.

May 24, 2018

Socialism … Bad

We are hearing incredibly bad stories about what is going on in Venezuela, a nominally socialist state. Comments extend about as far as “Socialism … bad!” When anyone brings up the option of socialism as a governing structure in general, opponents bring up the USSR, another failed state. This is clearly propaganda.

Whenever capitalist states experience chaos, no one in this country says “Ah ha, capitalism … bad!” One has to ask whether Venezuela’s current woes are because of socialism or in spite of socialism. I suggest that they are due to bad management, just as our ups and downs are created.

None of socialism’s detractors claim that Venezuela’s fate will soon come to the democratic socialist states in Scandinavia, as in “As goes Venezuela, so goes Denmark!” Socialism has become a “failed ideology” … in the minds of capitalist cheerleaders, aka the wealthy. Neither capitalism nor socialism is a political system complete; they are barely economic systems. Once you get past the basic definitions, disagreements abound. The arguments pro and con rarely get beyond the No True Scotsman Fallacy. The successful socialist states are claimed to have governments that are “not true socialism.” Only the failing or failed states are “real socialism,” according to the dyed in the wool capitalists.

This propaganda campaign is visceral and aimed at making sure that the masses are unaware of any acceptable alternative political systems. It also provides a handy shortcut to smear anything unappreciated by the rich. Whenever Bernie Sanders recommends policy, it is quickly labeled “socialist” so that it receives at least as much negative attention as positive. Well. I hate to tell you, but the post office is socialist, Medicare is socialist, the public schools are socialist, and the military is socialist. The “people” own “the means of production” in each case. Of course, the hidebound anti-socialists don’t hammer away at these things as being socialist, instead they decry “guvmint” as being unfit to operate such enterprises and urge their privatization (for a profit, of course). This is what it comes down to. The capitalists are profiting from almost every possible endeavor, including the acts of people getting sick and dying. They cannot abide the idea that no one (ahem, them) is making a profit from teaching our kids to be good citizens, or from our soldiers making war around the world.

In the case of war making it is “enough profit is not enough.” Even with the excessive billions spent on war making every year, including providing the profits of war materiel manufacturers, think about how much profit could be made if soldiering were contracted out! My favorite example was the contractors for kitchen services in Iraq during our invasion of that country. In one report, the contractors billed twenty dollars a day for a cook’s aide to peel potatoes and whatnot, a job previously done by soldiers, and the contractor hired a local to do the job for a few dollars per day and pocketed the rest. Now think of that kind of practice applied to the entire effort. The opportunity for god-fearing profits boggles the mind! And all of those profits are going to waste because of our commitment to a socialist army!

I look upon the democratic socialist states in northern Europe with envy. I was taught in grade school that our political system was the best of all possible systems. I learned as an adult, that the political parties are “opponents” in name only and that both compete for campaign donations from the wealthy conservatives who provide the bulk of all donations to politicians. Consequently we have a center right political party and a far right political party contesting for the donations from conservative donors. Both parties ignore the desires of the population at large and serve the interests of the wealthy only. I just do not see this as “the best of all possible systems” unless you qualify it as “the best of all possible systems for the wealthy.”

April 29, 2018

Wither Public Education?

I was reading a comment recently that in the U.S. no one expects to be given housing or food and drink or medical care, but all parents expect their children to be given a good education. The “why” of this was immediately apparent … because we have already paid for it. Education is funded through property taxes and state taxes with a smidgen of federal funds thrown (but always with strings attached, so those are not funds to support ongoing efforts). If you are a homeowner and say that you are unfairly singled out for these taxes, please realize that those of us who do not own our homes (of which I am one) pay rent, which is used by the rental unit’s owner to pay his property taxes. And we all pay income taxes or other taxes to our states. We are also not paying just for our own kid’s educations, but everyone’s, as part of the commonweal.

So, in our “pay as you go” culture, we have paid for the “go” but it is currently under attack.

As a scientist and a trained meeting facilitator and a sports coach I know that the most important part of solving problems is the careful elucidation of what the real problem is. If you misidentify the problem, the odds of you solving it plummet.

With regard to public education, the problems have been misidentified for years. Starting roughly in 1983 with the publishing of a major (and very flawed) study given the title of “A Nation at Risk,” which launched the false narrative that American public schools were failing, a systematic false narrative about “the problem” was being proffered. The nation, at the time of that study, was in the throes of a recession, and the authors of the report blamed the schools, which is patently stupid because the lag period between youths being in public schools and being out in society where they can have a major impact on the economy has to be measured in decades. Nothing happening now could be caused by the state of schools now; twenty years ago, maybe.

In any case, since that time a major disinformation campaign has been continuously waged against public schools (they are failing and the sky is falling, too). The current object of that campaign is to “privatize” public schools so as to extract profits from them. The justification for the profits is as spurious as the disinformation about what is wrong with our schools. The justification is that “market forces,” aka “school choice,” will solve all of the problems. This is a belief in what I call “market woo” and really should be advanced by “experts” dressed up as witch doctors because it has as much value as does spiritual medicine. The real justification for the profits is the profits themselves. Being able to extract profits from the huge pile of money set aside to educate our kids is the primary motive and it has the oligarchs drooling.

As to the “real problem” with public schools I offer the following: if you segregate out public schools in relatively wealthy parts of the U.S., you will find that they perform at very high levels. Massachusetts public schools, for example, perform on international tests higher than the current darlings of those tests, e.g. Singapore, Finland, etc. This fact alone obliterates the claim that government cannot do public schools well.

Now, if you think I am going to follow this up with a claim that schools are underfunded, you will be quite wrong. They are often underfunded and that is part of the problem, but school funding alone will not make the schools that are not performing at a high level do so. (The wealthy cannot claim that school funding is not an issue when they are sending their own children to schools that have very high levels of funding.) Careful studies show that there are real roadblocks to performance in schools. (Hint: teacher competence is not a major concern here, even though that has been part of the misinformation smear campaign of the oligarchs.) The roadblocks are poverty, racism, and violence. In school districts where the students are chronically hungry and receive threats of violence on a frequent basis, we now have solid research showing that almost nothing else can be done to raise performance up to the levels of schools in which these forces are absent. Asking the schools to fix these problems is stupid. We can ameliorate them a little. We can escort students to and from schools, but they are being preyed upon in the neighborhoods as well. Fear for one’s physical safety is an all-consuming distraction. We can provide school breakfasts and lunches (and I recommend we do that for all students) and by so doing that we can ameliorate the effects of hunger on being able to concentrate in class. (My son wrote a history of school lunch programs, so we have a great deal of history with regard to what does and does not work in that, plus we have examples in other countries as to what is possible.)

It is now clear that the “reformers” claims of the value of vouchers and charter schools are bogus. These “solutions” were proffered as solutions for “the problem.” Since the problem was a false construct in the first place, the solutions were hardly likely to work and have been proven not to. They also have unleashed a tide of corruption as fly-by-night charter operations which have bilked states out of many millions of dollars. This has become such a common event that a premature closing of charter schools has become commonplace.

This is a con, pure and simple. The con artists (in order to extract our money) established “the problem” and “the solution.” (Any time the problem and solution come from the same source, you know it is a con.) The con artists did a good job of obfuscating who is behind the scam, but we can see it all now. And politicians, who are receiving “campaign donations” from charter schools(!!), are always willing to “serve the public” by giving us what we want: “school choice.” But we don’t want school choice, that is their solution. We want the good education for our children that we have paid for.

A careful consideration of the real issues shows that the “crisis” in our schools was not there in the first place. The real problems center on inconsistency. We demonstrate, on a daily basis that we can “do” public schools very, very well but we also demonstrate that we are willing to accept a very much lower standard of performance in some schools. Much of this attitude is racist and some is politically and religiously motivated, but it does not solve “the problem.”

If we want to continue the “pay as you go” system we have created, with all of its incentives, what is the incentive in crippling some of our citizens with a poor education, so they cannot earn enough to pay for a decent life for themselves and their families? The answer is that there is none, that the effort to undermine the education of the poor is fueled out of animus and this just has to stop.

We can start by “calling bullshit” on the public education reformers. If you need any ammunition, any of Diane Ravitch’s recent books will do (Reign of Error or The Death and Life of the Great American School System, etc.) And do realize that our democracy is teetering. While we should be making efforts to strengthen it, it is being undermined by authoritarian rich assholes and one of their leverage points is public education. Privatize that, let public schools wither away, and our democracy is in extreme peril.

April 17, 2018

Taxing the Rich: A Good Idea or Not?

To those whom much is given, much is required.

The standard narratives regarding not taxing the rich are quite bankrupt but are still used, much like the tired old arguments of religious apologists (there is always a new audience to whom these arguments make sense). The usual thing touted is that the rich are the job creators and if you tax them (at all?) they won’t take risks and start new companies which hire workers and we all suffer thereby.

As a counter narrative consider the story of Toys R Us, a huge entrepreneurial success story, which ended in a financial meltdown. The company, however, made its owner rich when individual and corporate taxes were ever so much higher and met its demise in a time when those taxes became ever so much lower.

Read this fascinating story here.

The “standard narrative” of the rich about the rich is they made their money “themselves,” so they “deserve” the rewards. But in reality, does anyone make it themselves? Or is it like personal gifts one is born with and developed, in which we deserve some credit for the development but much of what happens to us and because of us depends upon things like genetics, luck, externalities (like available electricity and good roads provided to all), circumstances of birth (being born into a rich family is a strong marker for “becoming” rich)?

January 12, 2018

Oh, If Someone Else Will Pay For It, Sure

Walmart, the nation’s largest private employer, said on Thursday that it would raise its starting wages, give bonuses to some employees and vastly expand maternity and parental leave benefits for its army of more than one million hourly workers. The retailer said that it would use some of the money it expects to save under the recently passed Republican tax bill to pay for the raises and enhanced benefits.

Walmart said it would increase its starting hourly wage from $9 to $11, and provide one-time cash bonuses of up $1,000 to hourly workers, depending on how long they have been with the company. The wage increase brings Walmart in line with some of its other retail-industry rivals amid a tightening labor market. Target raised its base pay to $11/hr last fall.

So, Walmart is struggling to keep up with Target? WTF?

Within hours of its self-serving announcement, Walmart undercut its triumphal message when news leaked that it was closing 63 of its Sam’s Club stores.

So, was the wage increase a smoke screen? Some “good news” to cover the “bad news” to follow? Otherwise why make the announcements on the heels of one another?

And, since Walmart is using its “tax cut” to pay for some of these employee benefit increases, how much of it we do not know, are they saying “Gee, now we can afford it?” Walmart has made huge profits for its owners and investors for decades, large enough that they could have been a leader in how to treat their employees. But no, Walmart would rather their primaries get to become billionaires than their workers to have a living wage.

And if anyone claims that Walmart is paying the “market price” for its labor, I will scream! The “market” is not magic, in fact it is a political construct that has been manipulated to create the lowest possible labor costs for its participating companies. The “market” is something that is a lousy guide for any endeavor. Worse are “free markets.” Any decent economist can tell you that unregulated markets doom the sectors they serve. In fact markets cannot thrive without regulation. So, why is one of our major political parties campaigning on a “regulations are bad, we must get rid of them” plank? Ask the people who are paying for those opinions to be espoused and actions taken. (Hint: it ain’t you or me.)

As to who will actually pay for those raises, look forward shortly to the Repubs to cut benefits to poor people. Why? Because the tax jiggering they have pull off is going to lower federal tax receipts and “we won’t have the money” to pay for such frivolous expenditures. Look for Walmart employees, a class of workers who benefit from the government programs lined up for haircuts by the GOP, even with their raises and bonuses to be less well off a year from now than they are now.

Three Billion = Not Enough

Today, Carrier, the profitable heating/ventilation/air conditioning company, owned by United Technologies Corporation, a federal contractor whose climate, controls, and security division, of which Carrier is a part, reported three billion dollars in operating profit in 2016—is letting go of more than two hundred employees in its second and final wave of Indiana-based layoffs, which began last July. In total, the company will be laying off more than five hundred employees as it moves manufacturing jobs to Monterrey, Mexico. Many of those employees voted for Donald Trump, who made saving Carrier’s “big, beautiful plant” one of his most repeated campaign promises. It was part of his broader pre-election claim that “A Trump Administration will stop the jobs from leaving America.”

Do realize that careful analyses of such moves often show the savings are minimal. Because the jobs are no longer near the U.S.-based managers, another level of managers has to be hired. Then there is transportation costs, and…. One thing you can be sure will be affected is their stock price. “Shareholders” love these moves, why no one knows. I suspect it is the choir praising the minister as both managers and shareholders belong to the same church, the Church of Greed.

Three billion dollars in profits in just one year and a sterling reputation for quality and … oh, we have to move to save the company? WTF?

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