Robber Barony Is Back

http://topincomes.g-mond.parisschoolofeconomics.eu/#Graphic:
select:
United States
1917-2009
Average Incomes
bottom 90% average income - including capital gains

Shows the submerged 90% of us earn the same (per family) in real terms as we did in the late 1960s. Yet the typical family now has more wage earners, working more hours.

Same site, select
Top Income Shares
top .01% - including capital gains

Shows the hunting animals eating the entire carcass except during 1942-1981, when we had effective antitrust law, labor law, and progressive taxation.

In only these forty years was the average family income of the top .01% "only" 165 times the average family income.  Before 1942 and after 1981, the rich took a much larger share.  In 2010 it was 462 times the average and increasing.  (If only the top .01% earned anything, their share would be 10,000 times the average.   That the one family in 10,000 now takes nearly 5% of all the income, is appalling.)

The rich get their income not for what they do, but for what they own.  They claim to be "job creators."  In truth, the only job creator is a customer, who buys something.  We have to get money back in the hands of those who spend it--the nonrich.  When the only people with money to spend have all the stuff they can use, the economy collapses.  These booms and busts happened regularly up through the Great Depression.  It was political action that transformed the working class into the middle class, avoiding the booms and busts.  Deregulation, detaxing the rich, eroding worker rights, free trade, since 1981 are bringing back the bad old days of many serfs, one lord.  Only political action can reverse the trend.  We have to restore antitrust laws, restore workers' rights, establish fair trade not free trade, tax the rich.

Norway has a much fairer balance of power between employees and employers, partly due to nationwide collective bargaining.  U.S. labor laws have been eroded since they were enacted in 1935, by anti-labor court decisions and anti-labor legislation.  Now, management can ignore labor agreements and labor law without serious consequences.

2012 Talking Points: Rachel, Thomas, George, and Me

Most weekdays I watch the videos from the previous night's Rachel Maddow Show, and, as you can well imagine, very often I join in the discussion myself. Yesterday Thomas Frank, author of Pity the Billionaire, was one of Rachel's guests:

Thomas: You and I can sit here and say we’ve been engaged in conservative politics in this country for 30, maybe 40 years ... privatizing, deregulating, deunionizing, outsourcing, all of this sort of thing, but their answer to that is, "Uh-uh. We just haven’t gone far enough. And we’ll never be prosperous again until the day we deregulate all the way and we privatize everything. Until then you can’t say that laissez-faire or the free market has been discredited, because we haven’t been allowed to do every last little thing that we want." ...

Rachel: Your thesis absolutely has helped me understand what happened in 2010 and how the simplistic—incredible but simplistic—and vehement argument that sounds simple and effective repeated loudly can work. ...

Me: So this explains why the "trickle-down economics," "government-is-the-problem," "deregulate-and-privatize-everything" ideas still have traction? Because they've been repeated loudly and vehemently and often enough? No wonder it seems like so much of public discourse has become a fact-free zone.

Perhaps this touches on one of progressives' greatest difficulties. We like reasoned discussions; we like exchanging ideas of merit; we like refuting right-wing pundits' assertions. But when we do that, we often respond using the right's own language and ideas; we let them frame the discussion and we don't get to our own frames.

Let's invite George Lakoff, author of Thinking Points: Communicating Our American Values and Vision, to join us.

George: Progressives have a basic morality, which is largely unspoken. It has to be spoken, over and over, in every corner of our country. Progressives need to be both thinking and talking about their view of a moral democracy, about how a robust Public is necessary for private success, about all that the Public gives us, about the benefits of health, about a Market for All not a Greed Market, about regulation as protection, about revenue and investment, about corporations that keep wages low when profits are high, about how most of the rich earn a lot of their money without making anything or serving anyone, about how corporations govern your life for their profit not yours, about real food, about corporate and military waste, about the moral and social role of unions, about how global warming causes the increasingly monstrous effects of weather disasters, about how to save and preserve nature.

Progressives have magnificent stories of their own to tell. They need to be telling them nonstop.

Me: So in essence, this is what the right has been doing so effectively. They have hammered on their talking points until everyone is parroting them, not just the party faithful. Of course, it doesn't hurt that the right has its own 24/7 propaganda machine that happily reiterates right-wing frames over and over again. Still, you have to admit, they've been good at this stuff and progressives have not.

In the coming election year, beloveds, let's quit reacting to the right's provocations and focus like a laser on what we believe in: representative democracy, clean and transparent government, opportunity for all, the common good, the Bill of Rights, the well-being of the 99%, social as well as individual responsibility, inclusiveness and diversity, and compassion and empathy.

The Price of Inequality

This article, adapted from The Price of Everything: Solving the Mystery of Why We Pay What We Do, by Eduardo Porter, explains that wider communications, bigger companies, and deregulation are creating a pay structure where fewer and fewer people are taking more and more of the money, leaving the vast majority with no hope of sharing the benefits. This is a natural process. Wealth concentrates until the only people who can buy anything don’t need to, and the economy collapses. Both that article and this one point out that, in Frank Rich's words, "America can’t move forward until we once again believe . . . that everyone can enter Frontierland if they try hard enough, and that no one will be denied a dream because a private party has rented out Tomorrowland." Bob Herbert points out that in the recession of 2008 to the present, many unemployed people have lost that hope. As Paul Krugman says in The Conscience of a Liberal 2007 (p. 18), “Middle-class societies don’t emerge automatically as an economy matures, they have to be created through political action.” The political actions we need are progressive taxation, regulation to prevent abuse of economic power, public education, and a social safety net. And we should focus not on Gross Domestic Product, which harmfully accrues disproportionately to the wealthy, but on the average income of the poorest half or poorest 35% of the people, as recommended by Muhammad Yunus, "banker to the poor" and Grameen Bank founder.

Too, corporate executive pay often is more plunder than compensation.