Sunday, June 27, 2021

Week-end Wrap – Political Economy – June 27, 2021

Week-end Wrap – Political Economy – June 27, 2021

by Tony Wikrent


Strategic Political Economy

THE 50-100 PAY GAP: These 20 Harsh Facts About Income and Wealth Inequality Will Shock You 

[Capital & Main, via Naked Capitalism 6-22-2021]

Fourteen shocking facts on inequality and working Americans
● Worker hourly compensation increased just 17% from 1979 to 2019, while worker productivity increased more than 72% over the same time period.

● Had the income of the bottom 90% of Americans kept up with GDP growth, they’d have collectively taken home $2.5 trillion more in 2018. Over the 43 years since 1975 combined, the figure is $47 trillion.

● The wealth of the bottom half of families — roughly 64 million families — adds up to only 1% of total U.S. household wealth.

● The median white family has 41 times more wealth than the median Black family and 22 times more wealth than the median Latino family.

● In 2016, 72% of white families owned their home, compared to just 44% of Black families and 45% of Latino families.

● For the average American consumer, the share of their expenditures spent on health doubled from 1980 to 2018.

● Half of U.S. adults with lower incomes skipped necessary medical care such as doctor visits, recommended tests, treatments, follow-up care or prescription medications in the past year because of the high cost.

● Between 2008 and 2018, the number of states in which health insurance premiums and deductibles consumed at least 10% of median income increased from seven to 42.

● The price of education increased 600% more than incomes from 1980 to 2018.

● One in four Americans have no retirement savings — and those who do aren’t saving enough. The median retirement savings account of $120,000 for those approaching retirement (ages 55 to 64) will likely provide less than $1,000 per month over a 15-year retirement span.

● Social Security benefits have lost 30% of their buying power since 2000.

● Nearly 83 million adults — 34 percent of all adults in the country — reported that their household found it somewhat or very difficult to cover usual expenses such as food, rent or mortgage, car payments, medical expenses or student loans in the last seven days, according to survey research in November 2020.

● Nearly half of Black adults reported it was somewhat or very difficult to pay usual household expenses, nearly twice the rate among white adults and Asian adults (28%). A similar share (47%) of Latino adults reported such difficulties.

Sunday, June 20, 2021

Week-end Wrap – Political Economy – June 20, 2021

Week-end Wrap – Political Economy – June 20, 2021

by Tony Wikrent


Strategic Political Economy

The Lords Of Hell (And Their Slaves) 

Ian Welsh


Homelessness, despair and so on are required: without them people will not work at bad jobs. Indeed, without them many people would not work any more than required to feed and house themselves.

Now, understand clearly, rip a hole in your skull, and put this in: there is more food than needed and way more homes than homeless people in all developed countries and more food than needed to feed everyone in the world. We could easily feed and house everyone in the world. It is almost a trivial problem. We simply have to do it.

Industrialization plus modern agriculture produces more than we need, easily. Automation should mean that less and less hours needed working. We should be living in a paradise of free time and choice.

We do not because a small minority has captured power and enslaved the rest of us.

These people are monsters on every possible level, including their depraved indifference to what will happen to their children and grandchildren under environmental collapse and climate change.

We have a surplus, but it is generated in the stupidest ways possible: with planned obsolesence, soil degradation and pollution causing environmental collapse.


Matt Stoller: A Society Designed to Incentivize Criminal Behavior at the Highest Level


Washington’s Dangerous New Consensus on China (not paywalled)

Bernie Sanders [Foreign Affairs, via Naked Capitalism 6-18-2021]

The deck: “Don’t Start Another Cold War.”


The carnage of mainstream neoliberal economics

Many Americans moved to less pricey housing markets in 2020 

[AP, via The Big Picture 6-15-2021]

Many Americans who moved last year relocated to areas where homes were, on average, bigger and less expensive. On average, people who moved to a different city in 2020 ended up in a ZIP code where average home values were nearly $27,000 lower than in their previous ZIP code.

Sunday, June 13, 2021

Week-end Wrap – Political Economy – June 13, 2021

Week-end Wrap – Political Economy – June 13, 2021

by Tony Wikrent


Strategic Political Economy

[Twitter, via Naked Capitalism 6-11-21]

x


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Vast Majority of Voters Want Higher Taxes on Wealthy, Corporations 

[Americans For Tax Fairness, via Daily Poster 6-12-2021]

Nearly 7 in 10 voters support raising taxes on the wealthy and corporations, according to a new poll from ALG Research, Hart Research, and Americans for Tax Fairness. Moreover, voters become more supportive of President Joe Biden’s economic plans when they are told they will be funded by taxes on the wealthy and corporations.


The Global South has lost $152 trillion through unequal exchange since 1960
Dylan Sullivan [Progress in Political Economy, via Mike Norman Economics, June 7, 2021]

Dependency and world-systems theorists have long argued that “unequal exchange” is a key driver of global inequality. Since wages and natural resource prices are much lower in the global South than the North, poor countries must export many more units of embodied labour and resources than they import in order to achieve a monetary balance of trade. This creates a constant transfer of labour and ecology from the periphery to the core, developing the latter but impoverishing the former.

In a recent paper in New Political Economy that I co-authored with Jason Hickel from the University of London, and Huzaifa Zoomkawala, a data analyst based in Karachi, we quantify the value that has been appropriated from the South through unequal exchange since 1960. To do this, we use a method developed by the economist Gernot Köhler. Köhler proposes that we can use purchasing power parity (PPP) exchange rates constructed by the World Bank to value the South’s exports at the North’s price level. By subtracting the actual market price that the South received for its exports from this figure, we can measure the commodities appropriated by the imperialist states, in terms of the Northern price of those commodities.

Using Köhler’s method, we find that in 2017 the ‘emerging and developing economies,’ as defined by the IMF, lost $2.2 trillion worth of goods to the ‘advanced economies.’ This represents an enormous loss for the South. These resources could have ended extreme poverty 15 times over, but instead they were transferred gratis to the core. This windfall is of enormous benefit to the centres of empire. For instance, in 2017 the US gained $2,634 per person through unequal exchange, while the average Australian citizen received $3,116 from the South. Since 1990, the North’s annual gains from unequal exchange have sat at 5.2% of GDP, considerably higher than the North’s annual growth rate. In other words, if not for imperialist plunder, aggregate income in the North would have been declining for decades. The extraordinary levels of material consumption currently enjoyed in the North are predicated upon exploitation and poverty in the periphery.


Figure 1 shows total value transfer since 1960. All up, the South has lost $62 trillion (constant 2011 dollars), equivalent to 97% of its 2017 GDP. If this surplus had been available to the South, it could have been reinvested in domestic economic development. If we assume this surplus would have grown at the same rate as Southern GDP, it would now be equivalent to $152 trillion.…

And don’t forget the RAND study that found in USA alone, the one percent have taken over $50 trillion from the bottom 90 percent since 1975Trends in Income From 1975 to 2018.

Friday, June 11, 2021

A tribute to Frank Ryan, a Producer Class HERO

 

Frank Ryan passed in April 2021. He was a close friend who led one of the more interesting lives imaginable. He was a builder of complex and difficult things. And he made a decent living fabricating some of the parts of our complicated existence.

For example, he made what he laughingly called "terminator" parts—titanium pieces that were used by an orthopedic surgeon to re-enforce and replace bones during a long-term research project going on over at the University of Minnesota Hospital. The surgeon would ask for Frank by name and together, they created a whole line of prototypes that resulted in a serious expansion of what orthopedic surgery can actually fix. The doc had great ideas that Frank turned into titanium parts that were often so light, they fell like a leaf if dropped.

The shop where Frank worked had an established reputation and so received every month perhaps eight metal-bending journals directed at high-end fabricators. These publications were paid for by the machine toolmakers so I am pretty sure they were just junk mail for the shop. Fortunately, someone in the administrative offices carried these magazines down to the shop floor break room. Frank would wait a few days so anyone interested could look at the articles, and then would bring them home.

Which is how I got to see them. And I thought they were absolutely wonderful. And this is where the story gets complex and fascinating. The reason I was so interested in reading journals directed at the machine-tool industry, is because I was trying to understand what had happened to the USA economy (and by extension the global economy) during the late 1970s and the 80s. The trigger for my curiosity was an argument I had in 1982 with the highest-ranking civil servant I knew in Washington DC. We were discussing the effects of the Recession of 1980-1. His take on events was that Reaganomics was going to herald a new day of economic growth and prosperity. My take was that this economic calamity had wiped out hundreds of thousands of small and mid-sized farmers and businessmen and much of the destruction was permanent.

It was about that time I discovered that the political economist Thorstein Veblen had been very careful in drawing a distinction between business and industry. I had long assumed that these two words were simply synonyms. Not so! argued Veblen. For him, industry was the organization of the community's necessary work—growing food, building infrastructure, inventing, etc. Business, on the other hand, consisted of the efforts employed by those who could not or would not do the necessary work themselves and gained their incomes through force and fraud—imperialism, rents, usury, tithes, taxation, the whole predator-class list.

The business vs. industry dichotomy is one of those ideas that once you have seen it, it is damn difficult to unsee it. Ever! Veblen's famous "The Theory of the Leisure Class" in 1899 described the antics of the Business / Leisure classes. It took until 1914 for him to describe the characteristics of the industrial classes. He called that description "The Instinct of Workmanship: and the state of the industrial arts".

The implications of Veblen's Business / Industry dichotomy were, and still are, absolutely staggering. For one thing, the numbers suggested that while the Leisure Classes were culturally dominant, the overwhelming majority of humanity had to struggle through life employed in jobs that had little status and pay. On the other hand, the industrial classes were far more accepting of science and technological advancement. They had discovered that one sure way to advance themselves out of their subservient status was to invent and build a new world. 

When Veblen was born in 1857, the vast majority of the population farmed with brute labor—harvesting wheat with a scythe or picking corn by hand. 100 years later, plumbers owned Corvettes, radio and TV allowed everyone to have their own soundtrack, and food was so plentiful that anyone remotely interested could become a food snob. And all of this was made possible by a torrent of inventiveness that allowed for the mass production of high quality metals and tools that could output products to the accuracy of microns. The Industrial Revolution was the first and only revolution that provided real material progress to folks who had previously been slaves, share-croppers, serfs and peasants. 

I learned NONE of this tale of Industrial Class revolution during my years in school. And yet when I discovered these social histories by reading Veblen and others of the era of scientific invention, I immediately believed them because of my good friend, Frank Ryan, was a living example of why they were true. 

That Frank Ryan was this production genius is one in thousands of examples for why the USA Midwest became the global heartland of invention. If he had grown up in someplace like Detroit or Chicago or Muncie Indiana, he would have known dozens of people with his eventual mechanical skills. But Frank was born in a tiny, desolate, wind-swept burg near where the Missouri River exits the state of South Dakota. And while Ole Rolvaag was correct in asserting that it was only the Giants in the Earth that could settle the brutal environments that were the high prairies, these were not the high precision skills that produced substitute human body parts. The nearest such operation was probably at least 100 miles from where Frank spent his childhood.

But Platte South Dakota wasn't nowhere. In fact, it had a lot of the same characteristics of the industrial incubators that gave us Henry Ford and the thousands of farm-kid inventors who would follow his recipe. In farm country, inventiveness is a survival skill. Being able to figure out a novel way to solve problems becomes a highly admired attribute. Frank's father was a veterinarian back before licensing procedures had been instituted. He was a vet because he successfully treated animals so it was farmers who kept him in business—not diplomas. He was successful because he was scientifically literate enough to understand causation.

Frank also grew up during the early heyday of model airplanes and apparently built a lot of them. Kits could be had for $0.10 and usually took a couple of months to assemble. Considering it took from the dawn of recorded history until 1903 to figure out powered flight, the fact that by the 1930s, models that flew were considered a children's pastime was really a stretch. For a model to fly, it must follow the same laws of nature that a full-sized airplane does. Frank never bragged about how well his models flew which suggests they probably usually crashed. Folks who build those large-scale models you see flying on YouTube are fabricated by middle-aged men (or older) with considerable skills and persistence. But simply building those $0.10 models taught a host of fabricating skills merely to get them to the stage where you could hang them from the bedroom ceiling.

And then there was the Army. Frank was hardly the first small-town kid that the military tapped to operate and maintain its technologically advanced tools of war. In fact, rural kids were considered prime recruits. Frank easily passed the Army entrance test which sought out technical skills and was told he could select any training path that interested him. He selected the skill that had the longest training. The Army got the last laugh—his training made him qualified to operate the over-the-horizon radars which supposedly gave an early heads-up on missiles launched over the North Pole. This meant he spent some long winters in places like Greenland and Alaska. Even a South Dakota upbringing does not prepare someone for the sheer brutality of a Greenland blizzard. There was a limit to how long someone could tolerate such an assignment especially since in practice, this meant that, at best, North Americans could be terrified for 20 extra minutes before their world would end.

After 7 years, Frank left the Army to join the post-war economic expansion. His military skills had no civilian application so he found himself selling temporary classrooms to frantic school boards facing the results of the baby boom. Sales gigs would become an increasingly difficult way to make a living so one day, a few years later, he walked in the door of small punch-press shop and was hired by someone who assumed that anyone with reasonable personal habits could feed one. But even in a small punch shop, there is a hierarchy of skills. By the time I met Frank in the early 1970s, he had become a premiere set-up specialist—the guy who arranges tools precisely so they make accurate parts. This was obviously a critical skill—not the least reason was the fact that even tiny mistakes could result in the destruction of $thousands worth of specialized tools. What made all this especially ironic was that those difficult jobs Frank would come to excel at, he had probably never even heard of that day when he went to work as a punch-press operator.

When I first met Frank, I took an instant liking for him—he was from a small prairie town, he understood and appreciated those rural survival skills, and most importantly, he had built flying model airplanes made of balsa and tissue—a hobby that had occupied a significant portion of my youth. He told interesting stories about the struggles to make difficult parts from a wide assortment of alloys. 

But most of all, he wanted to help me with my big problem. I had teamed up with a couple of dreamers who believed we should rehab a vacant building in a neighborhood that had deteriorated from fashionable to thoroughly dilapidated. I had built houses as a carpenter to help finance my college education and so I confidently assured them I could fix their building. It soon became apparent that the skills necessary to build tract houses did not obviously transfer to restoring late 19th-century Victorian and Queen Anne mansions. I was WAY in over my head. I had to figure it out on the fly and so I got together with Frank each night when he got off work and we would plot my next move. Frank was amazingly helpful. Not once on that project did I have to take something apart because I had taken a wrong turn.

Sometimes, I would have a project where I really needed an extra set of hands. Frank was an incredible sidekick. He would keep track of tools and materials, he would help organize the workspace, and when I needed those extra hands to guide large parts through tools, he always knew where to hold on and which way to push. One project involved making a teak room divider in a room with a 10' ceiling. It would have glass doors and shelves, it would be lit with a bulb on a dimmer, and there would be a a wooden cabinet to store the booze. No drawings had been produced so Frank had only a vague understanding how everything would go together but he soldiered on being his very useful self. The end result was stunning. The woman whose crystal collection this room divider would house showed up when Frank and I were sitting around and admiring our handiwork. She asked Frank when he actually understood what we were building. He laughed, "Oh, about 1/2 hour ago." It was at that moment when I realized what Frank had brought to my life—expert help, loyalty, trust, and understanding.

When Frank started supplying me with those machinist trade journals, he became someone who was more than an example of raising usefulness to an art form, he was making a critically important contribution to my intellectual understanding of the world. Veblen argued that the industrial classes were the numerical majority. What he left out of his argument were speculations on how amazingly stratified his giant industrial class was. Frank's magazines just exploded this point into my consciousness. Frank had more practical skills than anyone I had ever met, yet compared to the people who designed and built the machine tools he operated, he was a hobbyist. Hyper-accurate machine tools are one of the more critical elements of a science-based civilization. One of the easier ways to judge the technological sophistication of any social order is to examine the quality of their machine tools. Of course, even the finest machine tools are pretty worthless unless operated by passionately skilled and imaginative people...like Frank.

Once I had become acquainted with the nearly limitless possibilities and crazy difficult problems that could be solved by the nearly miraculous tools available to humanity, the question then became, "Why are we not creating this available utopia?" And I became fixated on expanding Veblen's class theories because it provided a believable answer to the question "Why are modern societies run by people who have NO IDEA how their world actually works?" Veblen's social theories provide a brilliantly simple response. The highest goal of the Leisure Classes is a life of uselessness. The highest goal of the industrial classes is usefulness. So while a Leisure Class occupation like politics has, if anything, deteriorated in the last 150 years (think Abe Lincoln to W. Bush) the Industrial Classes have invented miracles (like the progress from the telegraph to the satellite-based Internet). So it turns out that folks determined to live useful lives WILL significantly outperform the people determined to be absolutely worthless.

Soon I would write a book inspired by my new insights into Frank's world. When I had a first draft, I showed it to to him. He was absolutely delighted and read it in three days. We got together and he began to read some of the passages that truly amused him. A couple provoked genuine belly laughs—some a giggle. I was flattered beyond words that he thought I had captured the world-view of a prime set-up man.

Frank lived an important life. Everything that is truly amazing about this country was the result of the hard work, inventiveness, and determination of men like Frank Ryan. Folks like him still exist—though there seems to be fewer of them these days and their social situation seems nearly hopeless. 40+ years of USA de-industrialization will do that. So here's a toast to a Producer Class hero. R.I.P.

So what does a true Producer do when he retires? Why build a ridiculously complex trimaran, of course.

Sunday, June 6, 2021

Week-end Wrap – Political Economy – June 6, 2021

 Week-end Wrap – Political Economy – June 6, 2021

by Tony Wikrent


Strategic Political Economy

The Particular Psychology of Destroying a Planet” What kind of thinking goes into engaging in planetary sabotage?

Bill McKibben [The New Yorker]

….in a new book from the British psychoanalyst Sally Weintrobe. “Psychological Roots of the Climate Crisis” states its argument in its subtitle: “Neoliberal Exceptionalism and the Culture of Uncare.” Weintrobe writes that people’s psyches are divided into caring and uncaring parts, and the conflict between them “is at the heart of great literature down the ages, and all major religions.” The uncaring part wants to put ourselves first; it’s the narcissistic corners of the brain that persuade each of us that we are uniquely important and deserving, and make us want to except ourselves from the rules that society or morality set so that we can have what we want. “Most people’s caring self is strong enough to hold their inner exception in check,” she notes, but, troublingly, “ours is the Golden Age of Exceptionalism.” Neoliberalism—especially the ideas of people such as Ayn Rand, enshrined in public policy by Ronald Reagan and Margaret Thatcher—“crossed a Rubicon in the 1980s” and neoliberals “have been steadily consolidating their power ever since.” Weintrobe calls leaders who exempt themselves in these ways “exceptions” and says that, as they “drove globalization forwards in the 1980s,” they were captivated by an ideology that whispered, “Cut regulation, cut ties to reality and cut concern.” Donald Trump was the logical end of this way of thinking, a man so self-centered that he interpreted all problems, even a global pandemic, as attempts to undo him. “The self-assured neoliberal imagination has increasingly revealed itself to be not equipped to deal with problems it causes,” she writes.


The real Lord of the Flies: what happened when six boys were shipwrecked for 15 months

[The Guardian, via The Big Picture 6-3-2021]

When a group of schoolboys were marooned on an island in 1965, it turned out very differently from William Golding’s bestseller, writes Rutger Bregman….

For centuries western culture has been permeated by the idea that humans are selfish creatures. That cynical image of humanity has been proclaimed in films and novels, history books and scientific research. But in the last 20 years, something extraordinary has happened. Scientists from all over the world have switched to a more hopeful view of mankind. This development is still so young that researchers in different fields often don’t even know about each other.

Sunday, May 30, 2021

Week-end Wrap – Political Economy – May 30, 2021

 eek-end Wrap – Political Economy – May 30, 2021

by Tony Wikrent


Strategic Political Economy

Long Slide Looms for World Population, With Sweeping Ramifications 

[NYT, via Naked Capitalism 5-23-2021]


“1 big thing: The state of the world, according to me”

Dion Rabouin [Axios, via Naked Capitalism Water Cooler 5-27-21]

I find this very interesting because Rabouin implies that he is conveying the elite consensus he has gathered from his contacts and sources over the past years. The elites are well aware of the socio-economic problems afflicting average people: “Because consumers don't have cash to spend, many companies struggle to generate real profits.” Then the bottom line: “But it doesn't seem like there's much interest in finding an actual solution, just printing more money, adding more debt and putting more Band-Aids on the problem.” 

As Ian Welsh explains in CDC Decides To Just Not Count All Covid Cases

The people making decisions not only don’t care if you die, if you dying will make them richer or more powerful, they’ll go with the decision path that leads to you or mum or your best friend dying or winding up homeless. You aren’t nothing to them, you’re meat. A prey animal.

Welcome to late capitalism.

Rabouin: 

This being my last Axios Markets newsletter, I figured I'd break from tradition and tell you what I really think. I'm not anyone important, but I read a lot of reports and I talk to a lot of smart people, so I've learned a thing or two.

I believe our country is in trouble. And it’s not about a loss of morality or religion or liberals or conservatives or the current president or the last president. It’s about a fundamental problem we have as a nation — a reckless imbalance of wealth. The people at the top have too much and the people at the bottom don't have enough.

This is not a philosophical matter of doing what’s “right.” It’s a practical matter of doing what’s necessary to uphold and maintain a consumption-based economy…. We’re living in a world now where the wealthy have so much money they literally don’t know what to do with it…. Those who aren’t asset holders haven’t even benefited from the risk-asset inflation that’s accompanied housing, medical and education price inflation for the past decade because wage inflation hasn’t even come close…. 

This problem isn't new. We've been lurching toward this imbalance for years as corporations busted unions, moved jobs offshore and muscled out independent small businesses, aided by politicians who rewarded them with tax breaks and no-bid contracts for doing it….

  • Retailers can't raise prices, so it is almost entirely a race to the bottom — nearly half of all new retail store openings announced so far this year are from Dollar General, Dollar Tree and Family Dollar.
  • The obvious exception being luxury brands, which are selling products to the wealthy who have more money than they know what to do with.

New companies today almost universally either lose money, free-ride by offering a service that makes some other service cheaper, or sell something to large corporations or the government.

#BigFacts: Because consumers don't have cash to spend, many companies struggle to generate real profits.

  • However, because interest rates are so low, if a company is big enough it can just keep issuing bonds to keep itself afloat.
  • That's why nearly a quarter of the largest public U.S. companies today are zombies — firms that don't even make enough money to pay the interest on their debt.

….But it doesn't seem like there's much interest in finding an actual solution, just printing more money, adding more debt and putting more Band-Aids on the problem.

Sunday, May 23, 2021

Week-end Wrap – Political Economy – May 23, 2021

Week-end Wrap – Political Economy – May 23, 2021

by Tony Wikrent


Predatory Capitalism in the Time of COVID19

‘Government Money That’s Gone Into Vaccine Development Is Being Privatized by a Handful of Companies’ 

[FAIR, via Naked Capitalism 5-16-2021]


It Was The Government That Produced COVID-19 Vaccine Success 

[Health Affairs Blog, via Naked Capitalism 5-16-2021]


“Who owns the covid vaccines?”

Cory Doctorow [via Naked Capitalism Water Cooler 5-17-2021]

““Behind every great fortune lies a great crime.” The true mRNA vaccines theft isn’t entrepreneur-inventors who face robbery by the public sector — rather, those “entrepreneurs” have enjoyed billions in public subsidies, and now insist they owe nothing in return….. Pharma’s claim that it doesn’t owe us anything in return makes no sense, even by the companies’ own logic. They say that markets produce wonders because they reward canny risk-taking with vast fortunes. By that logic, the public — who assumed the majority of the risk in developing vaccines — are the angel investors in this high-tech unicorn, and the pharma companies are the VCs who came in with some late capital to help scale up a sure thing.”


America Is Failing Its Moral Test on Vaccines
New York Times Editorial Board, May 14, 2021, via Naked Capitalism 5-16-2021]

The H.I.V. advocacy group PrEP4All estimates that for $4 billion — less than the country is spending per day on coronavirus response efforts — the federal government could build enough manufacturing capacity to vaccinate the entire planet against the coronavirus. It will cost much more to actually make the needed doses, of course. The nonprofit advocacy group Public Citizen estimates that a $25 billion government-wide initiative would produce around eight billion doses of mRNA vaccine, or enough to vaccinate half the planet. That’s far less than the trillions that could be lost if the economy contracts further as the pandemic persists.

Sunday, May 16, 2021

Week-end Wrap – Political Economy – May 16, 2021

 Week-end Wrap – Political Economy – May 16, 2021

by Tony Wikrent


Strategic Political Economy

Insider view: the tragedy of the US Deep State 

Pepe Escobar [Strategic Culture Foundation, via Mike Norman Economics 5-12-2021]

“Now, Kissinger reflects the Deep State angst on the Russia-Chinese relationship and wants this split up for dear life. This is interestingly covered here by Kissinger. He does not want to tell the truth about balance of power realities. He describes them as “our values”, when the U.S. has no values left but anarchy, looting, and burning down hundreds of cities. Biden hopes to buy all these disenfranchised masses as money printing goes wild.

“So we are back to Kissinger shocked at the new Russian-Chinese alliance. They must be separated.

“Now, I do not agree with the balance of power intriguers in that morality or noble values should govern international relations, and not power. The U.S. has been following balance of power dreams since 1900 and now it faces economic ruin. These ideas do not work.  There is no reason the U.S. cannot be a friend of Russia and China and the differences can be worked out. But you cannot get to first base as balance of power considerations dominate everything. That is the tragedy of our time.”


Tech-Tonic Shift in Sino-Russian Cooperation

[BRICS - Joint Site of Ministries of Foreign Affairs of BRICS Member States, via Mike Norman Economics 5-13-2021]

Russia-China engagement in the military-technical field has ‘strategic importance’ for both parties, with bilateral cooperation on the upswing since 2010. This has gained momentum in the aftermath of the 2014 Ukrainian crisis, with Russia shedding its earlier reluctance to sell latest technology to China, signing deals for supply of Su-35 fighter jets and the S-400 missile defence system. The two sides are also engaged in joint projects, and Russia has agreed to help China develop its ballistic missile early-warning system. In fact, the latter development has been interpreted as a sign of increasing closeness between the two countries, which while not an alliance, does signal deepening engagement.


Mark Blyth - Trailer Age of Economics

We need to break the “folk models” of how people, and especially policy makers, think about economic issues.

x

Sunday, May 9, 2021

Week-end Wrap – Political Economy – May 9, 2021

Week-end Wrap – Political Economy – May 9, 2021

by Tony Wikrent


Strategic Political Economy

"Economic Warfare: What Can World War One Tell us about 21st Century Conflicts?"



x

Jonathan Kirshner is a Professor of Political Science and International Studies at Boston College, and the Stephen and Barbara Friedman Professor of International Political Economy Emeritus in the Department of Government, Cornell University. By the late 1920s France had Europe’s most powerful army, much of the world’s gold, and was an active and aggressive practitioner of economic warfare. Within a decade, however, tragically, and even shamefully, France could barely be roused to rise to its own self-defense. The stark difference between 1930 and 1940 is attributable to a radical polarization of French politics and an embrace of “the age of unreason” that paralyzed the country’s foreign policy practice. Kirshner explains how the shocking six week military collapse in autumn 1939 was prefigured by the destruction of French democracy in the six years before the German invasion. After the 1936 political collapse, the French upper classes openly opposed new Socialist Prime Minister Leon Blum with the slogan, “Better Hitler than Blum.” The United States today appears on a similar course of decline.


Sunday, May 2, 2021

Week-end Wrap – Political Economy – May 2, 2021

 Strategic Political Economy

“The Free Market is Dead: What Will Replace It?”

[Chris Hughes, Time, via Naked Capitalism Water Cooler 4-27-21]

Significant because it’s Time, of all places. 

But corporate America’s newfound support for more public investment is not a temporary phenomenon. We are witnessing the most profound realignment in American political economy in nearly forty years. President Ronald Reagan summed up the conventional wisdom that reigned from the mid-1970s onward in the United States: “Government is not the solution to our problem, government is the problem.” Economists, policymakers, and everyday Americans alike generally accepted that markets, unfettered and free, are the best way to create economic growth…. That ideology began to crack after the Great Recession, and in the wake of the coronavirus pandemic, it has collapsed. The rise of ethno-nationalism on the right and democratic socialism on the left testify to the growing disillusionment with the conventional wisdom of how government and economics are supposed to work. It’s not just the fringes questioning free market orthodoxy in a time of disease. Cross-partisan supermajorities of Americans want some of the biggest companies of America to be broken up, significantly higher minimum wages, a wealth tax on billionaires, and believe significantly more public investment is required to create economic growth. We have had regulations, public investment, and macroeconomic management to varying degrees throughout American history. What makes this moment different is that Americans across parties, class, and educational background are using a new framework to think about how we create prosperity.” 


“What’s behind the growth slump? Takeaways from census data”

[Associated Press, via The Big Picture 4-28-2021]

“The U.S. population grew to 331 million, a 7.4% growth rate from the last time the Census Bureau counted every person in the country, in 2010. Those may sound like big numbers, but it’s actually the second slowest rate of population growth the census has ever recorded, just behind the 7.3% growth in the 1930s. That decade’s slowed growth was rooted in the Great Depression. Our past decade’s sluggish rate had similar beginnings in the long shadow of the Great Recession. The drawn-out recovery saw many young adults struggling to enter the job market, delaying marriage and starting a family. That dealt a blow to the nation’s birthrate. Then the pandemic hit last year and made matters worse. But while U.S. population growth recovered after the Great Depression, demographers are not optimistic it will pick up anytime soon. Most forecast even slower population growth in the decades to come. Americans are getting older — the median age in the U.S. is 38, up one year from 37 in 2010. Immigration had been dropping even before the pandemic effectively shut it down. And many Republicans have largely turned against the idea of immigration, legal or illegal, a new political barrier to the country adding more population quickly. ‘Unlike the Great Depression, it’s part of a process where we’re likely to keep having slow growth,’ said William Frey, a demographer at the Brookings Institution in Washington, D.C. That has potentially grim consequences for the nation’s future.”

“...we’re likely to keep having slow growth...” Why? Just because population growth slows down? What most people do not realize is that a transition to an economy free of fossil fuel dependencies — if done in time to meet the challenges of climate change — will require some of the fastest economic growth in recorded human history. What do you think it’s going to look like as we replace the 1.5 billion motor vehicles in the world with electric vehicles? Do you want to do that over 30 or 10 years, or over the next ten? Or sooner? In fact, the faster the growth, the faster will we be changing the economy to meet the challenge of climate change. Frey is obviously stuck in a old paradigm of economic thinking. A huge challenge is going to be to managing world-wide economic growth rates of ten to fifteen percent for about 15 or 20 years, then transitioning to near zero-growth rates after the world’s economy and transportation systems have been rebuilt on a carbon free basis. 

Sunday, April 25, 2021

Week-end Wrap – Political Economy – April 25, 2021

 Week-end Wrap – Political Economy – April 25, 2021

by Tony Wikrent


Strategic Political Economy

Plato, Aristophanes and Aristotle on Money-Lust, 399-380 BC
Michael Hudson, April 23, 2021 [Naked Capitalism]

Delphi’s warning that lust for monetary silver (philarguria) was the only thing that could destroy Sparta was echoed by Plato, Socrates and other philosophers accusing wealth addiction of leading to greedy and hubristic behavior that impoverished society at large. Creditors were singled out for reducing debtors to bondage and taking their land.

Near the outset of Plato’s Republic (1 at 331c-d, written c. 380 BC), Socrates (who was put to death nearly twenty years earlier, in 399) discusses the morality of repaying debts in circumstances where this would lead to anti-social consequences. Cephalus, a businessman living in the commercial Piraeus district, states the typical ethic that it is fair to pay back what one has borrowed. Socrates asks if it would be just to return weapons to a man who has become a lunatic. If a madman is intent on murder, Socrates asks, will not returning his weapon to him enable him to commit unjust acts? In view of the likely adverse social consequences, paying back such a creditor would be the wrong thing to do. It all depends on what creditors will do with their returns, and how their actions affect society. Book 8 of the Republic elaborates upon this discussion, describing how wealth leads its owners to act in ways detrimental to society.


Howard University’s removal of classics is a spiritual catastrophe

Cornel West and Jeremy Tate, April 19, 2021 [Washington Post]

Academia’s continual campaign to disregard or neglect the classics is a sign of spiritual decay, moral decline and a deep intellectual narrowness running amok in American culture. Those who commit this terrible act treat Western civilization as either irrelevant and not worthy of prioritization or as harmful and worthy only of condemnation.

Sadly, in our culture’s conception, the crimes of the West have become so central that it’s hard to keep track of the best of the West. We must be vigilant and draw the distinction between Western civilization and philosophy on the one hand, and Western crimes on the other. The crimes spring from certain philosophies and certain aspects of the civilization, not all of them.



Divisive’: How Corporate Media Dismiss Ideas Unpopular With Elites 

[FAIR, via Naked Capitalism 4-19-2021]


The carnage of mainstream neoliberal economics

Capitalism as a Suicide Cult 

[CounterPunch, via Naked Capitalism 4-24-20]

...the problems causing such widespread social misery are systemic, means that the solutions need to be so as well. To understand why, the difference between socialism and social welfare liberalism is that socialism requires a redistribution of power— from corporate executives and capitalist owners, to workers. A transfer of power, if not ownership, is what the New Deal accomplished. Conversely, welfare state liberalism subsidizes capitalism. One third of the recipients of food stamps (SNAP) who work, work at Walmart. Seventy percent work. SNAP is a subsidy of low wage employers, not its recipients.

The transfer of power of the New Deal was accomplished 1) through reforms that constrained business in its ability to rob people and crash the economy, and 2) through building public institutions that redistributed power from oligarchs and executives to workers. The Glass-Steagall Act of 1933 separated investment from commercial banking, thereby leaving investment banks to speculate with their own money. This effectively ended the financial mania that cascaded into the forced sales of bank ‘assets’ in the early years of the Great Depression. As readers know, Glass-Steagall was repealed in 1999. The result: a world-historical residential real estate bubble and the Great Recession.

Sunday, April 18, 2021

Week-end Wrap – Political Economy – April 18, 2021

 Week-end Wrap – Political Economy – April 18, 2021

by Tony Wikrent


Strategic Political Economy

Michael Hudson: America’s Neoliberal Financialization Policy vs. China’s Industrial Socialism
Michael Hudson, April 15, 2021 [Naked Capitalism]


US West prepares for possible 1st water shortage declaration

[Associated Press, via Mike Norman Economics, April 17, 2021]


The Pandemic

India’s health system has collapsed
[Hindustani Times, via Mike Norman Economics, April 16, 2021]


The Biden Transition and the Fight for Real Hope and Change This Time

Shifting Balance of Power?
Barry Ritholtz, April 16, 2021 [The Big Picture]

A massive shift is occurring in the labor market today, one that has been misinterpreted by economists of all stripes…. fear of the virus is a valid reason keeping people from low paying jobs requiring interaction with potentially deadly, infectious members of the public. “Who the hell wants to risk their lives for $8 an hour before taxes?” 

….I suspect it is something broader, more than merely the economic recovery being impacted by Covid. Maybe more of a significant change, perhaps even a secular reversal of the longstanding power dynamic between capital and labor.

“Investors lament being frozen out of Biden infrastructure plan” [Financial Times, via Naked Capitalism Water Cooler 4-13-21] “President Joe Biden’s ‘American jobs plan’, unveiled last month, calls for $2tn of investment in highways, electrical grids and other basic infrastructure. At the same time, the White House put forward corporate tax reforms that it said would generate enough money to pay for the investment spree within 15 years. That has disappointed some investors and asset managers who once expected public-private partnerships would be a lucrative financing opportunity.”

...By the late 1960s/early 70s, the economy began shifting. Rising inflation and the collapse of unions were but two factors impacting this once idyllic economy. The next the next half century saw an ongoing increase in corporate power, both politically and economically. There is a longer discussion to be had about how the Supreme Court of the United States made some truly boneheaded WTF?!? decisions – Corporations are peoplemoney is speech– as part of that ideologically driven shift. You can debate the jurisprudence or ideology behind these, but the results were a widespread decrease in the standard of living for many Americans. Political donations and lobbying that were once seen as corrupt graft became the norm. Thanks, SCOTUS!

Sunday, April 11, 2021

Week-end Wrap – Political Economy – April 11, 2021

 Week-end Wrap – Political Economy – April 11, 2021

by Tony Wikrent


The Biden Transition and the Fight for Real Hope and Change This Time

Podcast: Are We Winning A New Political Era? (Exclusive for Subscribers) Discussion with Anand Giridharadas

David Sirota [Daily Poster April 5, 2021]

Grassroots pressure has forced Joe Biden to discard parts of his past record — and may finally be ending the Reagan Era.

Beginning at 21:20: 

Having a debate about new bills, not being consumed by deficit anxiety… is a profound cultural turning point [that] augers en entirely different era…. We have to be mindful of how cultures change [and] hat it looks like when what you’ve been fighting for begins to bloom….


Four Ways of Looking at the Radicalism of Joe Biden

Ezra Klein [New York Times, April 8, 2021, via The American Prospect 4-9-2021]

Most discussions of the renewed ambitions of the Democratic Party focus on ideological trends on the left. The real starting point, however, is the institutional collapse of the right…. The long campaign against the ideological compromise that was the Affordable Care Act is central here, but so too was then-Speaker John Boehner’s inability to sell his members on the budget bargain he’d negotiated with President Barack Obama, followed by his refusal to allow so much as a vote in the House on the 2013 immigration bill. And it’s impossible to overstate the damage that Mitch McConnell’s stonewalling of Merrick Garland, followed by his swift action to replace Justice Ruth Bader Ginsburg, did to the belief among Senate Democrats that McConnell was in any way, in any context, a good-faith actor. They gave up on him completely.
The result is that Obama, Biden, the key political strategists who advise Biden and almost the entire Democratic congressional caucus simply stopped believing Republicans would ever vote for major Democratic bills….
The backdrop for this administration is the failures of the past generation of economic advice. Fifteen years of financial crises, yawning inequality and repeated debt panics that never showed up in interest rates have taken the shine off economic expertise. But the core of this story is climate. “Many mainstream economists, even in the 1980s, recognized that the market wouldn’t cover everyone’s needs so you’d need some modest amount of public support to correct for that moderate market failure,” Felicia Wong, the president of the Roosevelt Institute, said. “But they never envisioned the climate crisis. This is not a failure of the market at the margins. This is the market incentivizing destruction.”
…. Even beyond climate, political risks weigh more heavily on the Biden administration than they did on past administrations. This is another lesson learned from the Obama years. The Obama team had real policy successes: They prevented another Great Depression, they re-regulated the financial sector, they expanded health insurance to more than 20 million people. But Democrats lost the House in 2010, effectively ending Obama’s legislative agenda, and then they lost the Senate in 2014, and then Donald Trump won the White House in 2016, and then Democrats lost the Supreme Court for a generation.…
Even when Biden was running as the moderate in the Democratic primary, his agenda had moved well to the left of anything he’d supported before. But then he did something unusual: Rather than swinging to the center in the general election, he went further left. And the same happened after winning the election. He’s moved away from work requirements and complex targeting in policy design. He’s emphasizing the irresponsibility of allowing social and economic problems to fester, as opposed to the irresponsibility of spending money on social and economic problems. His administration is defined by the fear that the government isn’t doing enough, not that it’s doing too much.

Tuesday, April 6, 2021

Civic republicanism - The Puritan Ethic and the American Revolution

Umm, no, I’m not talking about the damn Republican Party here: I think it’s more accurate to start labeling that cabal of cravenly corrupt clowns the "(not)Republican Party." To promote this relabeling, let us ask: What is a republic? And, what type of economy should a republic have? To that end, here is one suggested reading. 

The Puritan Ethic and the American Revolution 

Edmund S. Morgan, “The Puritan Ethic and the American Revolution,” The William and Mary Quarterly, Vol. 24, No. 1 (Jan., 1967), pp. 3-43

One note before the excerpt: the transition, under liberalism, from political economy to economics and politics as two separate bodies of intellectual pursuit involved removing the questions of morality (ethics) from economic considerations: only market forces were the acceptable means for judging economic outcomes.

“The Ethic conveyed the idea of each man’s and woman’s “calling” in life. “The emphasis of [work or labor] was on productivity for the benefit of society. In addition to working diligently at productive tasks, a man was supposed to be thrifty and frugal. It was good to produce but bad to consume any more than necessity required. A man was but a steward of the possessions he accumulated. If he indulged himself in luxurious living, he would have that much less with which to support church and society. If he needlessly consumed his substance, either from carelessness or from sensuality, he failed to honor the God who furnished him with it.”

….

“The calling of a ruler, as the colonists and their Puritan forebearers saw it, was like any other calling: it must serve the common good; it must be useful, productive; and it must be assiduously pursued.”

….

The Puritan Ethic whether enjoined by God, by history, or by philosophy, called for diligence in a productive calling, beneficial both to society and to the individual. It encouraged frugality and frowned on extravagance. It viewed the merchant with suspicion and speculation with horror. It distrusted prosperity and gathered strength from adversity…. The merchants actually had more than a short-range interest at stake in their reluctance to undertake nonimportation. The movement, as we have seen, was not simply a means of securing repeal of the taxes to which merchants along with other colonists were opposed. The movement was in fact anticommercial, a repudiation of the merchant’s calling. Merchants, it was said, encouraged men to go into debt. Merchants pandered to luxury. Since they made more on the sale of superfluous baubles than on necessities, they therefore pressed the sale of them to a weak and gullible public. What the advocates of nonimportation demanded was not merely an interruption of commerce but a permanent reduction, not to say elimination, of it. In its place they called for manufacturing, a palpably productive, useful calling.

Is there a path here by which the evangelical christianists might be saved by prompting them to engage in an opposition to consumer culture and in favor of a more responsible stewardship of resources? 

Sunday, April 4, 2021

Week-end Wrap – Political Economy – April 4, 2021

Week-end Wrap – Political Economy – April 4, 2021

by Tony Wikrent


Strategic Political Economy

The Biden Stimulus: If You Think Inflation is the Problem, Just Wait

[YouTube, March 1, 2021]

Very informative part is Blyth’s reply beginning at 4:06.

x


So essentially what we're doing is a 2 trillion dollar experiment in different theories of inflation. Why does that matter? The progressive side of the Democrats think of the world in this way: the fundamental problem [is that] wages for 60% of Americans haven't moved almost since the 1970s.  And up to the 50th percentile of the income distribution Americans earn $20 an hour or less. You can't run this country with that degree of working poverty.  That's what's behind the anger; that’s what’s behind the populism. We need to spend a lot of money to make the economy run hot. We don't need to worry about inflation because interest rates are low for a lot of reasons and there's been no inflation for 40 years. We can boost wages—and if we do, we stabilize the situation, and a lot of the bad shit we've been dealing with for the past several years will not come back.

On the other hand you have the deficit hawks, the Republicans, the centrist economists saying, no no , you'll have terrible inflation. They're essentially saying things are okay, and the reason you have populism is: yeah, there’s been some people who have been left behind, but there's a lot of racism there, and this is a cultural struggle. Really the economy is doing fine and this is far too much stimulus.

Now what you see there are basically people using economic arguments to bolster their priors. So if you think populism and the ills of the US is about low wages, you will say inflation is not a problem. If you don't think that then you don't say that it is a problem. I doubt that it’s really about people worried about inflation. But I worry because I buy the argument that wages matter. And I worry that if we don't try this in this moment you're not going to get wage growth—and if you don't get consistent wage growth over the next couple years the Democrats are dead when it comes around to the mid terms.


The minimum wage would be $44 per hour if it had grown at the same rate as Wall Street bonuses 

[Business Insider, via Naked Capitalism 3-30-21]

Thursday, April 1, 2021

Abolitionists, Political Economists, and Capitalism

Abolitionists, Political Economists, and Capitalism 

James L. Huston

Journal of the Early Republic , Autumn, 2000, Vol. 20, No. 3 (Autumn, 2000), pp. 487-521

(resides on JSTOR)

The relationship between abolitionism and capitalism in the United States remains for historians a contentious subject. At the moment four general interpretations dominate. Neomarxists argue that abolitionism was the key movement that legitimated market social relations in the United States, in particular the supremacy of wage labor as the institutional means of fixing the economic position of manual labor. In this interpretation, the abolitionists wittingly or not paved the road for the conquest of industrial capitalism and oppression of the working class. Thomas Haskell offers a second approach, ideologically opposite the neomarxists, that found human sensitivity to others originating in market transactions: because individuals in a commercial economy learned to obey their promises when written down in legal contracts, they learned to deal with others without resorting to physical coercion, thereby inculcating a humanitarian sensibility. A third rendition emphasizes republicanism in abolitionist thought. Abolitionists were heirs of the American Revolution and republican thinking; their attack on slavery was based on denial of selfishness and an advocacy of public virtue. From this perspective, the abolitionists were anticapitalists because they denied the role of self-interest that lay at the core of capitalist thought and behavior. Finally, the evangelical interpretation insists that the abolitionists were Christian zealots and moralists, opposed to capitalism either because morality superceded the economic process or because they would not place the worship of mammon above worship of the deity. [1]

The main contenders at the present seem to be the neomarxist and evangelical renditions. In 1998 the publication of two important works showed how vividly these two interpretations clashed. Amy Dru Stanley insisted that abolitionists trumpeted the key doctrines of liberal capitalist doctrine: self- ownership, voluntary economic arrangements, social relations governed by contract, and the correctness of wage labor. "Legitimating wage labor was a central part of the abolitionist project, but never its sum total," she argued; "for most abolitionists, the autonomy expressed in wage labor was but an offshoot of the underlying right of property in the self that constituted the taproot of contract freedom." At the same time, the late Paul Goodman portrayed abolitionism as a reaction against capitalism (or the market transformation). "Abolition," he wrote, "was a struggle to impose on social and economic relations the moral principles that were rooted in Christian teachings." [2] This article seeks to refine historical understanding of the ties between abolitionism to the emerging capitalism of the United States in the nineteenth century and generally sides with Goodman's perspective. Abolitionists possessed a biblical political economy, not a classical liberal one....

[1] For the emphasis upon abolitionists' role in legitimizing wage labor in capitalism, see John Ashworth, Slavery, Capitalism, and Politics in the Antebellum Republic: Vol. I: Commerce and Compromise, 1820-1850 (New York, 1995), 82-84,131-81; David Brion Davis, The Problem of Slavery in the Age of Revolution, 1770-1823 (Ithaca, 1975), 45-47; and Davis, "Reflections on Abolitionism and Ideological Hegemony," American Historical Review, 92 (Oct. 1987), 797-812. For Thomas Haskell, see Haskell, "Capitalism and the Origins of the Humanitarian Sensibility," parts 1 and 2, American Historical Review, 90 (Apr. 1985) 339-61 and (June 1985), 547-66. For a treatment of abolitionism utilizing the republican synthesis, see Daniel J. Mclnerney, The Fortunate Heirs of Freedom: Abolition and Republican Thought (Lincoln, 1994). On the abolitionists and religion, consult John R. McKivigan, The War Against Proslavery Religion: Abolitionism and the Northern Churches, 1830-1865 (Ithaca, 1984); also, James Brewer Stewart, Holy Warriors: The Abolitionists and American Slavery (New York, 1976; 2d ed., 1996). A recent synthesis of work on reformers has reduced the stress on modernization that filled earlier works: Steven Mintz, Moralists and Modernizers: America's Pre-Civil War Reformers (Baltimore, 1995), xiv-xx, 9-10. 

[2] Amy Dru Stanley, From Bondage to Contract: Wage Labor, Marriage, and the Market in the Age of Slave Emancipation (New York, 1998), 20; see also 105, 160; Paul Goodman, Of One Blood: Abolitionism and the Origins of Racial Equality (Berkeley, 1998), xiv, 140.

Read entire article on JSTOR (Requires a subscription, which your local library might have. Most college and university libraries have subscriptions--you can go there and download it through their wireless internet connection.)

Sunday, March 28, 2021

Week-end Wrap – Political Economy – March 28, 2021

 Week-end Wrap – Political Economy – March 28, 2021

by Tony Wikrent


Strategic Political Economy

Genocide. 

[Brasilwire, via Naked Capitalism 3-22-21]

In January of this year, a study published by the Center for Research and Studies on Health Law at the University of São Paulo, and NGO Conectas, proved that the spread of the coronavirus in Brazil was a government strategy. The same researchers now insist the president should be investigated for genocide.

In May 2020, the far-right president insisted that “only the weak, the sick and the elderly should be worried” about Covid-19. What sounded like denialism a year ago now reads like a candid admission…. No other country on earth had a head of state actively preventing their population from being vaccinated, whilst leaving the poorest unable to protect themselves through isolation.

A recent study in Brazil’s largest city São Paulo shows that those living in its poorest neighbourhoods are 3 times more likely to die of Covid-19 than those in its wealthiest.

A Better Path to Tech Reform? Felony Charges 

[Wired, via Naked Capitalism 3-24-21]

...there are two options to buy time, neither of which requires congressional action. It merely requires the government to apply regulatory tools that do not get used frequently, namely subjecting business executives to felony prosecution.

The first option is an antitrust case against Google led by the attorney general of Texas that alleges a price fixing conspiracy in digital advertising. The complaint names Facebook as a co-conspirator. Price fixing falls under Section 1 of the Sherman Act, significant because it does not require proof of harm. The attempt itself is a crime. And if, as has been alleged, there is evidence of an agreement for mutual legal defense, there may be a second count. When appropriate, executives can be subject to felony prosecution, punishable by up to three years in prison. Google denies any wrongdoing.

The Biden Justice Department has an opportunity to join the Texas case or to pursue its own case as a felony. DOJ can adds Google and Facebook executives to its criminal antitrust indictments. The situation warrants it, as the harms in question are the result of deliberate business choices. The threat of imprisonment might change the calculus for internet CEOs, creating for the first time an incentive to make the changes to their business model necessary to stop harm to public health, democracy, privacy, and competition….


The events of the past year have exposed structural flaws in the economy, the health care system, the electrical grid, and American politics. Some of these problems may appear to be less acute than the pandemic, but all require attention now. This poses a huge challenge for the Biden administration, which is hamstrung by 40 years of deregulation and underfunding of government institutions. They have to use every available tool.