Economics

Bootlicker Kevin McCarthy showboated his way through an evening of scorn and ridicule for his audience of one: Herr Trump. His sad evening comedy routine for the “just joking!” crowd was an act of political theater given no votes in his caucus were ever in danger of voting for the bill, thus no need to persuade them. McCarthy’s speech sparked jeers and heckles from the chamber itself as well as the wider outside world, as tweets poured forth from inside and out of the Capitol.

Fortunately, the GOP Leader failed to stop Biden’s Build Back Better plan while gifting the Democrats with a healthy dose of both comedy gold and some irresistable mid-term slogans:

Continue reading McCarthy’s speech stunt gives gift of Democratic midterm slogans
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Or capital vs. labor, oligarchs vs. plebes, plutocrats vs. proles, rich vs. poor — however you want to narrate it, the property vs. people struggle continues on in new and old ways, each and ere day.

Here in America, the plutocrats have devised many clever methods of hiding the class struggle behind a race war smokescreen, that is both real and manufactured — instigated, exacerbated, agitated by the likes of schlubby wife abusers like Sloppy Steve Bannon, wrinkly old Palpatines like Rupert Murdoch, and shady kleptocrats like Trump and Putin.

The United States has nursed an underground Confederacy slow burning for centuries, for sociopathic demagogues to tap into and rekindle for cheap and dangerous political power. Like The Terminator, racist and supremacist troglodytes seem always to reconstitute themselves into strange and twisted new forms, from slavery to the Black Codes to sharecropping to convict leasing to Jim Crow to Jim Crow 2.0 — the psychopaths want their homeland.

The political left loves people, and our extremists for the most part destroy capital or property that insurance companies will pay to make shiny and new again — unlike the right wing extremists who bomb federal buildings, killing hundreds of people and costing taxpayers’ money to replace.

Meanwhile, the right wing claims to be the righteous party for its extreme fixation on life before birth, yet its regulation-allergic capitalists destroy people and the natural world more broadly, from factory farming to deforestation, the destruction of habitats, strip-mining and other toxic extraction practices, and on into climate change itself. Being in fact the chief architects of manmade atmospheric devastation, they have managed to make themselves invisible from the deed by simply (wink wink!) denying it exists.

WWJD?!

Certainly, not anything the Republican Party is up to. Jesus would be sad.

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Another big legislative win crossed the line for Biden’s agenda late this Friday night: the $1.2T bipartisan infrastructure bill passed the House with 6 Democrats dissenting and a whopping 13 Republicans joining to finally bring Infrastructure Week to the American people. Still to come is the other partner to the twin bills circulating in Congress, the Build Back Better reconciliation bill that would add another $2T to the most Keynesian U.S. budget in decades.

Nevertheless, the bill is largely paid for via various means including adding significantly to economic growth and GDP over the next 10 years. The Biden infrastructure bill will not raise taxes on any families making less than $400,000, a campaign promise the president consistently made and has now delivered upon.

The bipartisan infrastructure bill is the second significant piece of legislation passed under Biden’s tenure in the White House, following the $1.9T American Rescue Plan back in March to successfully tame the covid-19 pandemic.

Infrastructure Bill 2021: Breakdown

What’s in the bill? A slate of sorely needed national funds to modernize our transportation, energy, and broadband systems, including provisions for increasing renewables and lowering emissions on a large scale to combat climate change. Here’s a list of what’s included in the largest single infrastructure investment in American history:

  • $110B for roads, bridges, & other infrastructure
  • $11B for transportation safety
  • $39B to modernize public transit, including replacing 1000s of vehicles with zero-emission models
  • $66B to modernize passenger and freight rail
  • $12B for high-speed rail
  • largest federal investment in public transit in history
  • $65B in broadband
  • $42B in airports and ports, including emissions reduction and low-carbon technologies
  • $7.5B for 0- and low-emissions buses (including school buses) and ferries
  • $7.5B for national network of EV chargers
  • $65B to rebuild the electric grid
  • $55B to upgrade water infrastructure
  • $50B to critical infrastructure cybersecurity
  • $21B to clean up toxic waste
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A national banking crisis in America that eventually spread to threaten economies around the globe, the economic crisis of 2007-8 was precipitated by the financial industry getting deeper and deeper into highly leveraged risk with a specific type of financial product called a subprime mortgage.

The loans were not of very high quality, due to the effects of predatory lending and of companies “pushing their luck” in a deregulated market by knowingly offering mortgage credit to Americans who couldn’t really afford to buy the homes they were encouraged to purchase. Mortgage underwriters were often incentivized with large bonuses for subprime signups, and even relatively well-off home buyers were often shepherded into subprime loans with worse terms than the traditional 30-year mortgages they would have qualified for.

Financial “hot potato”

The mortgages were securitized as complicated new types of assets, re-packaged into large bundles of derivatives to better obscure the sources, and rated far more favorably than warranted by the nation’s credit rating agencies. Sold swiftly around the world and especially here in the U.S. to institutional investors (who manage, among other securities, the pensions and retirement funds of the country), the game of financial “hot potato” ensured that almost no one in the complex chain of exchange had any incentive to take responsibility for the actual solvency of the underlying loans.

Eventually, the bubble popped and the house of cards came tumbling down. The downturn is widely regarded as the worst economic disaster in American history since the Great Depression of the 1930s, brought on by the stock market crash of 1929.

Moral hazard: Does commercial and investment banking under one roof create the wrong incentive?

In post-recovery, much scrutiny remains over the question of whether one specific law — the Glass-Steagall Act of 1933 which separated commercial banking from investment banking in response to the Great Depression — should be reinstated. Following its passage, the U.S. was able to stop the previous historical cycle of banking crises with regularity about every ~15 years:

…Until “stagflation” (high inflation coupled with stagnant growth) plagued the American economy in the 1970s, and the political establishment began to adopt policies heavily influenced by Milton Friedman and the Chicago School of economic thought, which borrowed heavily from an earlier wave of economic philosophy in the 1930s loosely congealed under the term “neoliberalism.” Widespread financial deregulation ensued, leading to the full repeal of Glass-Steagall in 1999. Many economists now point to the deregulation spree as the ultimate cause of the 2007-8 financial crash.


For a great resource on this, check out Matt Taibbi (of Rolling Stone fame)’s book Griftopia: A Story of Bankers, Politicians, and the Most Audacious Power Grab in American History

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Inequality is the difference in measures of economic well-being between individuals in a group, among groups in a population, or among countries. Also known as economic inequality; inclusive of both income inequality and wealth inequality.

In the United States, the data broadly shows shared economic growth and prosperity in the post-WWII period until the 1970s, when things begin to take a turn: economic growth slowed and income inequality began to increase. For the past 40-50 years, income growth for lower and middle class Americans has stagnated while income growth at the top of the distribution remained growing strongly. Meanwhile as wages have stagnated, costs have risen dramatically, especially in key universal areas like housing, utilities, health care, and education.

Inequality illustrated

Wealth is even more greatly concentrated than income. A recent Oxfam report found that the world’s richest 62 people control as much wealth as the bottom half of the entire population of the planet. In the U.S., the richest 20% of families owned about 89% of the country’s wealth as of 2013 figures.

Those at the top of the wealth distribution who benefit financially from the growing inequality find numerous ways to justify the architecture of the system, and retain much of the power and control over its design. Yet an overwhelming majority of the available historical and present-day data indicates that stark income inequality has wide-ranging negative effects on societies as a whole, from exacerbating social ills to deleterious effects on basic human needs.

Related effects

Further resources

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Or: How Milton Friedman destroyed Western civilization, the neolliberalism story.

An economic ideology first theorized in the 40s and 50s by scholars, it was brought to popular attention in the 1970s by the works of economist Milton Friedman and novelist Ayn Rand among others. It grew in popularity and became widely adopted in U.S. economic policy beginning with Ronald Reagan in the 80s.

The essential heart of neoliberalism is the idea of the rich as top performers and job creators, driving the economy forward through their achievements and innovations; and that societies work best with little government regulation and where citizens are shaped to work according to market principles. Its adoption as a major driver of policy effectively undid many of the gains to middle class opportunity created by the New Deal, FDR‘s ambitious public works project that pulled the nation out from the grips of the Great Depression following the 1929 crash on Wall Street.

Neoliberalism is the dominant economic orthodoxy in the modern era. It is both a political and a financial ideology, with the following extremist beliefs:

  • Antigovernment sentiment — Their pitch is that all governments, including democratic ones, threaten individual liberty and must be stopped (or “drowned in the bathtub,” in the words of anti-tax zealots and movement conservatives).
  • Free markets should conquer governments — They claim, absurdly, that the toppling of self-governance would improve both economies and individual liberties.
  • The victory of markets is inevitable and there is nothing you can do about it — The fall of the Soviet Union and Cold War Communism was deemed the “end of history” by neoliberals, who believed that laissez-faire free market capitalism would inevitably triumph over all other forms of economic and political systems.
  • Economies work best when governments don’t intervene — Neoliberals want to prevent the powers of government from interfering with their ability to cut corners, dump industrial waste, pay fair wages, offer benefits, adhere to safety standards, engage in deceptive advertising, commit tax evasion, and so on — while continuing to supply them a steady stream of the public’s money via unpaid for tax cuts that balloon holes in the deficit. They fight against regulation tooth and nail, and try to claim that markets operate “naturally” as if under something akin to laws of physics — while failing to mention that there are no markets without regulation, without standards of fairness, without a justice system to enforce contracts and do its best to ensure a relatively equal business playing field.
  • The alchemy of neoliberalism will transmute greed into gold for everyone — The neoliberal promise is about spreading wealth, freedom, and democracy around the world — at the barrel of a gun, missile, or drone if necessary. Neoliberals consider greed to be the essence of human nature, and have modeled an entire societal system around this most base of human instincts. They claim, improbably — and surely many are True Believers — that narcissism and the aggressive pursuit of power and wealth will somehow magically create peace, happiness, and riches for everyone.

The insistence that governments and self-rule should be subordinated to the ultra-rich, to the oligarchs — that, to me, is the core essence of why this framework is evil. The staggeringly dissonant conviction about transforming sociopathy into global peace is a very close second.

Since the 1970s and accelerating with Reagan years, wealthy elites in the right wing have been spending gobs of their ill-earned wealth on creating a conservative movement echo chamber of think tanks, talk radio, literature, televangelists, YouTube streamers, and more — it is the vast right-wing conspiracy Hillary Clinton warned us about. It most certainly exists, and it most certainly is aggressively pursuing its political aims to disenfranchise the American people as fully as possible, so as to better walk away with an absurdly unjust share of the mutually created wealth by the wealth of intelligent and diligent labor here in the United States.

Common whites

It appeals to the MAGA crowd because it allows them to vicariously tag along with the rich and powerful right-wing bigots who flaunt and dangle their wealth in front of the plebes by which to entice them to open up their wallets and send in a meagre donation for this or that white victimhood fund that does nothing but enrich the scam artists who run it as a hollow shell. It validates their hardcore white supremacy and casual racism alike, provides the sadistic satisfaction of attacking their enemies (symbolically and/or literally), gives them something to do and believe in, and keeps them entertained while their pockets are being fleeced in broad daylight.

Neoliberalism has succeeded in undermining some of the last shreds of democratic infrastructure and civic goodwill in society at this point in American political history. The defenses brilliantly architected by the Founders to ensure checks and balances would manage the power games in Washington to within workable levels have frayed even further under 4 years of Trump, and the vitriol of the January 6 coup attempt and insurrection that’s fueled further right-wing Big Lie entrenchment and domestic terrorist extremism.

Democracy is in crisis, and neoliberalism the culprit of this hostage story.

At least Joe Biden is correct in his analysis of the solution: we should tax the rich.

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For all their angry rhetoric and now, overtly political violence, I maintain that it is the right wing that is profoundly insecure, anxious, and in need of soothing. They are panicking at the idea that the world can possibly change without their approval, and deprive them of their stolen superiority — they do not want the party to end for white male dominance of this entire planet.

Right-wing authoritarian adults latch on to symbols and ideologies and demagogues as “surrogates” for the childhood safety blanket they once needed — these are the “adult-acceptable” pablum substitutes.

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It feels like the 1930s all over again — and with good reason. The rise of American fascists and right-wing extremism around the world has been a known trend for decades, and America’s past flirtations with fascism had been largely swept under the rug by the then anti-semites who tried to put a stop to FDR‘s New Deal and prevent the U.S. from getting into World War II.

They fought against labor unions and labor organizers, often using private militia as henchmen to do their dirtywork with plausible deniability for themselves. The Ku Klux Klan — the principle paramilitary organization formed during Reconstruction to undo egalitarian gains from the Civil War — was just one of many instruments put to use in service of plutocratic aims to quell any “communist awakening” amongst their workers, lest they get any uppity ideas for themselves. They fell for the popular conspiracy theories of their time, which included Hitler’s bogus assertion that Jewish bankers controlled the world and had to be stopped before they destroyed the white race.

Fascist revanchism

Those fascists, butthurt over America’s overwhelmingly popular decision to enter the war and stop Hitler from exterminating the Jews, seethed with jealousy at the post-war “liberal consensus” that flourished alongside the booming US economy, propelled first by the war effort and later by the peacetime success of the New Deal‘s long shadow and the burgeoning of the American middle class.

The American fascists turned into the John Birch Society, and the McCarthyites, and the Libertarians, and the Moral Majority, and the Gingrich Revolution, and the Tea Party, and the MAGA / QAnon stew sloshing around mass media. The kooks on the far right — the kind of ilk so cray cray that even William F. Buckley excommunicates you from the Republican Party — have taken over the hen house now. Outrage sells, as Facebook well knows — and as two-bit dictators around the world have bribed Mark Zuckerberg to brainwash the masses using the most inanely illogical propaganda prolefeed, the world tilts dangerously towards authoritarianism and the end of our democracy as we know it. And with it, all hope for truth and light into the future for some time to come — the equivalent of a political meteor hitting the Earth.

The American fascists are still around, and now they have tools of propaganda that Goebbels could never have even wet dreamed of. They’re more powerful and more well-connected — to other sociopaths, malignant narcissists, and other pathological cult-leader types who might be of transactional service to each other from time to time. Many of them cling to ideas of Christian nationalism and Strict Father Morality. We’d be wise to keep an eye on these folks.

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Data literacy is the newest frontier. The world of information has a pale twin universe of disinformation, deep fakes, fake news, and true believers — keeping track of reality will become more and more important and valuable into the future.

RussiaGate: Russian hacking of the 2016, 2018, 2020, and 2022 US elections

The Thinkery

See also: Dictionaries, GitHub historical texts repository

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It’s not just here at home in the US that fascism seems to have taken root in the population. There are many burgeoning nationalist movements resurrecting right-wing populism around the world, and as per many experts’ warnings, right-wing authoritarianism is on the rise around the globe.

Many of the right-wing populist thatches that have sprung up are at least in part, seeds planted by Vladimir Putin in his quest for Russian revanchism against the West following the end (or so we thought…) of the Cold War. Rumoured to be the richest man in the world by far, the former KGB agent was working in East Germany when the Berlin Wall fell, and has been pursuing his Lost Cause grievance ever since.

Learn more:

The right-wing authoritarianism movement is global

Given how seemingly easy it is for Charles Koch to buy American elections as the 15th richest person in the world, imagine what someone far wealthier and less provincial could accomplish. Marine Le Pen’s National Front in France took campaign cash directly from The Kremlin, Viktor Orban’s Hungary is Vladimir Putin’s strongest ally in the EU, the Belarusian dictator is propped up by Putin, who still occupies Ukraine’s Crimea, and the UK’s Brexit campaign acted as the canary in the coalmine for later disgraceful invasions of other nations’ sovereignty — perhaps most notably, election interference in the 2016, 2018, and 2020 US elections.

As such, it would be foolish not to see what’s happening here in America as part of a broader wave of right-wing populism and authoritarian fever that is very dangerous. We need to find out a lot more information about how all these puzzle pieces fit together, and get to the bottom of the real conspiracy clearly going on — if we can find it through all these smokescreen conspiracy theories clogging the propaganda waves.

Here’s a list of some of the extreme right-wing parties on the rise around the globe:

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On May 31, 1921, a mob of murderous whites descended on the Greenwood neighborhood of Tulsa, Oklahoma dubbed Black Wall Street, and razed it to the ground. They dropped homemade bombs in the first ever domestic aerial attack on American soil, during the Tulsa Race Massacre following the end of World War I.

Over three hundred Blacks were murdered and hastily buried or burned. Police and other state officials were complicit; no one was ever charged for the crimes and insurance companies refused to honor Black business owner’s claims from the destruction of their livelihood and senseless slaughter of their friends, families, and community. A generation of wealth was wiped out overnight, with deep economic repercussions passing down to ensuing descendants.

Whitewashing, literally

The Confederates managed to memory hole the Tulsa Race Massacre event clean out of history for the most part, until the 100-year anniversary of the event — arriving at a time of perhaps maximum racial polarization and most extreme partisanship in this country since the civil rights era. Nor is it the only example of mass murder and destruction of Black property and assets — there are plenty others we’ve never heard about in school. That’s why it’s so important to bear witness, and to remember, and to tell and retell the stories of our past — even the painful ones. Especially the painful ones.

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How to deal with bullies

Or, DADA vs. MAGA. Defense Against the Dark Arts was like the women’s self-defense class of Hogwarts — it taught you how to prepare yourself for the evil that was out there lurking and waiting for you out there. This course of DADA will follow suit, aiming to offer ways to detect, defend, and defeat the cultism rising in America and beyond.

It will be a work in progress over time, so please bear with me as I assemble learnings from a number of sources.

Red Flags: Traits to watch out for

  • evasiveness
    • vagueness
    • slipperiness
    • can’t be pinned down
    • won’t answer straightforward questions
  • denialism
  • cognitive dissonance
  • black and white thinking
    • “my way or the highway”
    • rigid and inflexible, even when obviously off the mark
    • all or nothing framing
    • narrow range of observations
    • tunnel vision
  • motivated reasoning
  • deceptiveness
  • easily angered
    • almost anything seems to trigger them

Attention: Take Back Control of Our Minds

The internet, social media, seemingly infinite channels of entertainment and franchises in gaming are but tips of the giant iceberg that now competes for our time and attention. The number of options to choose from has scaled exponentially over the past several decades — but our amount of time to spend has not increased whatsoever. If anything, it’s decreased

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  • proteanism is Robert Jay Lifton’s idea of a model for the self that could serve as an aspirational escape hatch from the clutches of cultism, which is otherwise always happening
  • cultism (i.e. “losing reality“) is what happens “by default” if effort is not made to form and maintain healthy cultures
  • cultism is what most individuals devolve to or maintain throughout their lives, if they lack proteanism
  • I believe professor Lifton is onto something real in this particular interpretation of our Manichaean struggle — in which the political left and the right have self-sorted into separate clusters with wildly disparate interpretations of reality
  • the cultists are dying (quite literally) for the words of a delusional sociopath who swept them out of power with his spew of thinly veiled white supremacy and gold veneer charm
    • they want the apocalypse to come
    • The oil preachers have brainwashed the masses into believing climate change is The Rapture — they want climate change. They think it’s God’s plan.

Cultism as a kind of collective personality disorder

  • we all get stuck in our own mental loops sometimes. Some people are exclusively stuck in their own mental loops — most are disregarded, but some achieve wide notoriety, wealth, and sometimes political power.
  • Some nefarious mental predators thrive on getting other people stuck in *their* loops — everyone from garden variety abusers to cult leaders take this general approach to convincing others to abandon their own ways of thinking and spend all their time consumed with thoughts of The Authority’s Philosophy. Some individuals with an authoritarian worldview willingly submit to a strongman and abdicate decision-making to untrustworthy others.
  • Charismatic leaders have ruled over human groups since the dawn of humanity itself, but only in the past century with the invention of mass media technologies and techniques have demagogues been able to achieve a kind of totalist saturation of the common space and common understanding — giving them an ability to spin the entire agenda in their favor, and in turn, effectively “own reality”
  • When a leader with a personality disorder achieves power, he draws the other antisocial sleeper cells out of hiding for the coming feast.
  • The leader installs his cronies into positions of power and corrupts the institutions that are meant to safeguard democracy. Instead of acting as a bulwark against nefarious intent, these agencies begin to look the other way against crimes committed by the leader and his buddies — and later, will directly participate and optimize their contributions.

The enemy at the gates is us

  • Cultism can be induced very simply, by stressing a population. That’s it — that’s all it takes, for people to turn inward, become suspicious, and react with excessive fear in the face of gnawing uncertainty.
  • It takes strong character to resist the siren songs of disinformation and spoon-fed flattery
  • Building strong character is hard work. Much much harder than most people are interested in putting in — or even capable of
  • Consequently, many people of weak character are easily taken in by con men, grifters, and slick talkers of all stripes.
  • However, these con artists are very good at one thing: convincing people of weak character that specific enemies are to blame for all their troubles, and getting them to give money or take action against these Satanic Democratic pedophiles who want to ruin the world with their Leftist Apocalypse, instead of ruining the world with the proper Rightist Apocalypse and Rapturing all the evil elites away!
  • These pawns, peons, and proles will dutifully go looking over hill and dale, under Pelosi’s chair for the violent Antifa socialists who want to take over the government
  • They want to build a physical border wall to keep out poor, bedraggled refugees while allowing foreign bidders to pay pennies on the dollar to buy political influence through Facebook, Google, and other unregulated new media platforms
  • It’s McCarthyism turned on its head — but since we’ve already cried wolf once, no one will really believe that Russians pulled off the greatest psyops campaign of all time
proteanismcultism
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