Archives for category: Economy

NPR interviewed Princeton sociologist Matthew Desmond about his new book, Poverty, by America. Desmond says that we can afford to eliminate poverty, if we want to. Income inequality is a driving force behind disinvestment in public services, he says.

Over 11% of the U.S. population — about one in nine people — lived below the federal poverty line in 2021. But Princeton sociologist Matthew Desmond says neither that statistic, nor the federal poverty line itself, encapsulate the full picture of economic insecurity in America.

“There’s plenty of poverty above the poverty line as a lived experience,” Desmond says. “About one in three Americans live in a household that’s making $55,000 or less, and many of those folks aren’t officially considered poor. But what else do you call trying to raise three kids in Portland on $55,000?”

Growing up in a small town in Arizona, Desmond learned firsthand how economic insecurity could impact a family’s stress level. He remembers the gas being shut off and his family home being foreclosed on. Those hardships would later drive his research — specifically the question of how so much poverty could exist within a country as wealthy as the U.S….

His new book, Poverty, by America, studies various factors that contribute to economic inequality in the U.S., including housing segregation, predatory lending, the decline of unions and tax policies that favor the wealthy. Desmond says that affluent Americans, including many with progressive political views, benefit from corporate and government policies that keep people poor.

“Most government aid goes to families that need it the least,” Desmond says. “If you add up the amount that the government is dedicating to tax breaks — mortgage interest deduction, wealth transfer tax breaks, tax breaks we get on our retirement accounts, our health insurance, our college savings accounts — you learn that we are doing so much more to subsidize affluence than to alleviate poverty.”

Desmond says that the growing affluence of those at the top drives it’s unwillingness to invest in public services:

If you are a family of means, you have the incentive to rely less and less on the public sector. So we used to want to be free of bosses, but now we want to be free of bus drivers. We don’t want to take the bus. We don’t want to often enroll our kids in the public school system. We don’t need to play in the public park or swim in the public pool. We have our own clubs, our own schools. We have our own cars. And as we withdraw into the private opulence, we have less and less incentive to invest in public services…

This one statistic that I calculated just blew me away. So a recent study was published and it showed that if the top 1% of Americans just paid the taxes they owed, not paid more taxes, … we as a nation could raise an additional $175 billion every year. That is just about enough to pull everyone out of poverty, every parent, every child, every grandparent. So we clearly have the resources to do this. It is not hard.

Matthew Desmond is a MacArthur Fellow and a principal investigator of the Eviction Lab, a research project focusing on poverty, city life, housing insecurity, public policy, racial inequality and ethnography. (Barron Bixler/Penguin Random House)

This is a rough estimate. I arrive at this number by looking at everyone under the poverty line, calculating the average it would take to just bring them over the poverty line and adding that all up. It’s pretty equivalent to what we could earn by just enforcing fair taxes at the very top of the market. What else could we do with $175 billion? We could more than double our investment in affordable housing. We could reestablish the extended child tax credit that we rolled out during COVID. … [That]was basically a check for middle and low-income families with kids. That’s all it was. And that simple intervention cut child poverty almost in half in six months. We could bring that back again with $175 billion and still have money left over.

Donald Cohen, executive director of “In the Public Interest” and author of The Privatization of Everything discovered an important insight about public attitudes. Many people assume that private business is invariably more efficient than the public sector. But, as he shows here, the private sector’s highest goal is profit, and the pursuit of profit leads to cost-cutting that is inefficient and actually, in the case of a train derailment in East Palestine, Ohio, dangerous.

Here is an excerpt:

Let’s dig into the basic “mathematics of efficiency.” It’s about spending or doing less to get the same or better (cost/time + efficiency = same or better.) In that formula, “efficiency” could either be “smarter” or “cheaper.”

The problem is that far too often it equals cheaper. Efficiency could mean fewer workers than are needed to ensure high quality or safe production on the shop floor. Efficiency could mean lower wage workers. Efficiency could be using lower-quality supplies and equipment. And sometimes, efficiency means fewer inspectors and less monitoring of safety protocols.

Sometimes “same or better” means outsized profits, expensive stock buybacks, high-dividend payments, and high executive compensation packages–in other words, the fruits of high productivity built upon a package of “efficiencies.”

So, I’ve come up with a new term. When efficiency means cutting corners for increased profits, we should call it: “Extractive Efficiency.”

That’s what happened in East Palestine and could happen again if the underlying extractive efficiency isn’t dealt with. In fact, over the last few years, all the railroad companies have focused on efficiency to increase profits, cheering Wall Street, but not the residents of East Palestine. Less than two weeks before the derailment, it was reported that Norfolk Southern, the train operator, had improved the average speed of its trains from 17.5 miles per hour to 20.7 between the second and fourth quarter of 2022, and by January was at 22.2 miles per hour.

Here are a few of Norfolk Southern’s “efficiencies.”

Fewer workers: Norfolk Southern removed a senior type of inspector from the track division that runs through East Palestine, making more work for signal maintainers. Over the past five years, employment among the nation’s largest freight rail carriers has fallen about 18 percent. With fewer workers doing more work, they may miss telltale signs of safety failures.

Harder work and more hours per worker: The industry, including Norfolk Southern, implemented “Precision Scheduled Railroading” that, according to The American Prospect“means no excess engines, no track not under constant use, no downtime in the yards, no employees not busy driving the trains or maintaining the tracks, and never have three one-mile-long trains when one three-mile-long train can be assembled.” Shockingly, railroad workers get no paid sick days.

The people who live near the derailment are paying the price of Norfolk Southern’s “efficiencies.” They will be dealing with the consequences of the toxic spill for years to come, affecting their health, the value of their homes, and the quality of their water.

But the railroad is returning handsome profits to its top executives and shareholders.

As you probably know, there have been many layoffs across the tech sector in recent months. At the same time, unemployment is close to a 50-year low, at 3.2%. Employers are raising wages to attract employees for low-wage jobs. Why is the tech sector in trouble? I’m no financial or corporate expert, so I can’t explain what is going on.

But something caught my eye as I read a story about Salesforce, which was both very successful and yet laying off 10% of its employees.

The company has been dogged by five activist investors in recent months, and is being pressured to cut costs, but the layoffs continue in spite of a stellar quarter. In fact, Benioff bragged to Swisher in bombastic fashion: “We had a great quarter. Yeah, it’s probably I think, it’s probably the best quarter of a software company ever.”

I clicked the link to see who those five activist investors who were demanding more cost cutting, no matter how it hurt morale at the company.

The first was Elliott Management. It rang a bell, but at first I didn’t remember why. More googling and soon I see the name Paul Singer.

Singer is a billionaire. Singer is a big supporter of charter schools. Singer is a rightwing Republican. Singer loves Eva Moskowitz’s Success Academy charter chain; in addition to giving SA millions, he served on its board.

An article in Mother Jones a decade ago called Singer a “vulture capitalist” and a “fundraising terrorist.”

A few years back, the U.K. Independent said that Singer had destroyed Peru’s economy and was threatening Argentina’s. Again, “vulture capitalist.”

Singer has been called a “doomsday investor.” When he takes over, he sucks out the lifeblood.

This guide to “vulture funds” was published only a month ago.

I have been trying to understand the connection between vulture investing and the aggressive charters that suck the lifeblood out of their host, the public school system.

What do you think?

Historian Heather Cox Richardson describes the sharp contrast between the two parties: the Democrats are looking to the future, building platforms for innovation, new industries, and economic growth, while the Republicans are mired in stale culture war issues—campaigning for more restrictions on abortion, despite public opinion, and relitigating the 2020 election.

She writes:

At Georgetown University’s School of Foreign Service today, Commerce Secretary Gina Raimondo spoke on “The CHIPS Act and a Long-term Vision for America’s Technological Leadership.” She outlined what she sees as a historic opportunity to solidify the nation’s global leadership in technology and innovation and at the same time rebuild the country’s manufacturing sector and protect national security.

Congress passed the CHIPS and Science Act in August 2022 by a bipartisan vote, directing more than $52 billion into research and manufacturing of semiconductor chips as well as additional scientific research. Scientists in the U.S. developed chips, and they are now in cars, appliances, and so on. But they are now manufactured primarily in East Asia. The U.S. produces only about 10% of the world’s supply and makes none of the most advanced chips.

That dependence on overseas production hit supply chains hard during the pandemic while also weakening our national security. The hope behind the CHIPS and Science Act was that a significant government investment in the industry would jump-start private investment in bringing chip manufacturing back to the U.S., enabling the U.S. to compete more effectively with China. In the short term, at least, the plan has worked: by the end of 2022, private investors had pledged at least $200 billion to build U.S. chip manufacturing facilities.

Today, Raimondo framed the CHIPS and Science Act as an “incredible opportunity” to enable the U.S. to lead the world in technology, “securing our economic and national security future for the coming decades.” In the modern technological world, “it’s the countries who invest in research, innovation, and their workforces that will lead in the 21st century,” she said.

Raimondo described the major investment in semiconductor technology and its manufacture as a public investment in the economy that rivals some of the great investments in our history. She talked of Abraham Lincoln’s investment in agriculture in the 1860s to cement the position of the U.S. as a leader in world grain production, Franklin Delano Roosevelt and Harry S. Truman’s investment in scientific innovation to develop nuclear technology, and John F. Kennedy’s investment in putting a man on the moon.

Each of those massive investments sparked scientific innovation and economic growth. Raimondo suggested that “the CHIPS and Science Act presents us with an opportunity to make investments that are similarly consequential for our nation’s future.”

The vision Raimondo advanced was not one of top-down creativity. Instead, she described the extraordinary innovation of the silicon industry in the 1960s as a product of collaboration between university scientists, government purchasing power, and manufacturing. Rather than dismissing manufacturing as a repetitive mechanical task, she put it at the heart of innovation as the rapid production of millions and millions of chips prompted engineers to tweak manufacturing processes a little at a time, constantly making improvements.

“This relentless pace of lab-to-fab[rication] and fab-to-lab innovation became synonymous with America’s tech leadership,” she said, “doubling our computing capacity every two years.” As the U.S. shipped manufacturing jobs overseas, it lost this creative system. At the same time, inability to get chips during the pandemic hamstrung the U.S. economy and left our national security dependent for chips on other countries, especially China.

Reestablishing manufacturing in the U.S. will spark innovation and protect national security. It will also create new well-paying jobs for people without a college degree both in construction and in the operations of the new factories. With labor scarce, Raimondo called for hiring and training a million women in construction over the next decade, as well as bringing people from underserved communities into the skilled workforce to create “the most diverse, productive, and talented workers in the world.”

Raimondo warned that the vision she laid out would be hard to accomplish, but “if we—as a nation—unite behind a shared objective…and think boldly,” we can create a new generation of innovators and engineers, develop the manufacturing sector and the jobs that go with it, rebuild our economy, and protect our national security.

Just “think about what’s possible 10 years from now if we are bold,” she said.

Later, Raimondo told David Ignatius of the Washington Post: “This is more than just an investment to subsidize a few new chip factories…. We need to unite America around a common goal of enhancing America’s global competitiveness and leading in this incredibly crucial technology.… Money isn’t enough. We all need to get in the same boat as a nation.”

Part of the impetus for the bipartisan drive to jump-start the semiconductor industry is lawmakers’ determination to counter the rise of China, which has invested heavily in its own economy. As the U.S. seeks to swing the Indo-Pacific away from its orientation toward China, Raimondo will travel to India next month to talk about closer economic ties between the U.S. and India, including collaboration in chip manufacturing as India, Japan, and Australia are launching their own joint semiconductor initiative.

For the Biden administration, the investment in chips and all the growth and innovation it promises to spark, especially among those without college degrees, is also an attempt to unite the nation to move forward. Theirs is a heady vision of a nation that works together in a shared task, as Lincoln’s United States did, or FDR’s, or JFK’s.

Their orientation toward the future, growth, and prosperity is a striking contrast to the vision of today’s Republicans, who look backward resolutely and angrily to an imagined past. In the short term, many of them continue to relitigate the 2020 presidential election, long after the Big Lie that Trump won has been debunked and the rest of the country has moved on.

In the New York Times yesterday, Luke Broadwater and Jonathan Swan reported that one of the reasons House speaker Kevin McCarthy handed access to more than 40,000 hours of video from the U.S. Capitol from January 6, 2021, to Fox News Channel personality Tucker Carlson was that McCarthy had promised the far right that he would revisit that event but did not want to have the Republican Congress tied to the effort. His political advisors say swing voters want to move forward.

In the longer term, today’s Republicans are out of step with the majority of Americans on issues like LGBTQ rights, climate change, gun safety, and abortion. Although Republicans are pushing draconian laws to end all abortion access, today Public Religion Research Institute (PPRI), a nonprofit, nonpartisan organization, released a report showing that 64% of Americans say that abortion should be legal in most or all cases, while only 25% say it should be illegal in most cases and only 9% say it should be illegal in all cases. Less than half the residents in every state and in Washington, D.C., supported overturning the 1973 Roe v. Wade decision legalizing abortion, as the Supreme Court did with the Dobbs v. Jackson Women’s Health decision of last June.

In a speech in Des Moines, Iowa, yesterday, Senator Tim Scott (R-SC) echoed Trump’s “American Carnage” inaugural address with his description of today’s America as one full of misery and hopelessness. Florida governor Ron DeSantis traveled this week to New York City, Philadelphia, and Chicago to insist those Democratic-led cities were crime-ridden, although as human rights lawyer Qasim Rashid pointed out, Florida has a 19% higher rape rate, 66% higher murder rate, and 280% higher burglary rate than New York.

Another study released yesterday by the Anti-Defamation League, which specializes in civil rights law, noted that domestic extremist mass killings have increased “greatly” in the past 12 years. But while murders by Islamic extremists, for example, have been falling, all the extremist killings in 2022 were committed by right-wing adherents, with 21 of 25 murders linked to white supremacists.

President Biden’s poll numbers are up to 46% in general and 49% with registered voters. Perhaps more to the point is that in Tuesday’s four special elections, Democrats outperformed expectations by significant margins.

There are many reasons for these Democratic gains—abortion rights key among them—but it is possible that voters like the Democrats’ vision of a hopeful future and a realistic means to get there rather than Republicans’ condemnation of the present and vow to claw back a mythological past.

To read her footnotes, open the link.

DeSantis is rolling out one hard-right proposal after another to make news and price he is meaner and badder than Trump. Undocumented people come here to work, and he wants to be certain that no one will hire them, not even to pick crops, clean hotel rooms or do the dishes in restaurants.

Gov. Ron DeSantis on Thursday revived a push to adopt more stringent hiring protocols to prevent the employment of undocumented workers, acknowledging that a state law he championed during his first term in office has been ineffective.

Florida law currently requires all government employers and their contractors to use a federal electronic system, known as E-Verify, to check the immigration status of new hires.

DeSantis, however, says the mandate should be expanded to include all private employers in the state, saying the current law was a “compromise” reached by the Legislature following pushback from Florida’s agriculture, tourism and construction industries.

“We ended up with a compromise version that was inadequate,” DeSantis said at a press conference in Jacksonville. Now, DeSantis wants the Republican-led Legislature to help him deliver on the promise he made to voters when he first ran for governor in 2018.

After overwhelming Republican victories in 2022, DeSantis argued, the “political context” is working in his favor this time around.

“Now, we have super majorities in the Legislature,” DeSantis said. “We have, I think, a strong mandate to be able to implement the policies that we ran on and these are policies that I’ve been for since the day I became governor over four years ago.”

The E-Verify proposal is part of a larger immigration package that DeSantis is building ahead of a possible run for the Republican nomination for president in 2024, and that he is expected to use to attack President Joe Biden’s immigration policy to reach conservative voters not just in Florida, but on a national level.

To further bolster his immigration platform, DeSantis wants, among other things, to ban out-of-state tuition waivers at colleges and universities for undocumented students and prohibit local governments from issuing identification cards to migrants.

Read more at: https://www.miamiherald.com/news/politics-government/state-politics/article272581361.html#storylink=cpy

George Scialabba wrote this essay in Commonweal. It is worth your while to read it and think about it. It might help explain why so many red states are unwilling to fund public schools and prefer to spend public money subsidizing the tuition of children already attending private schools, transferring public funds to private and religious schools.

Unless we have reached the end point of humankind’s moral development, it is pretty certain that the average educated human of the twenty-third century will look back at the average educated human of the twenty-first century and ask incredulously about a considerable number of our most cherished moral and political axioms, “How could they have believed that?” We do it every time a movie like Twelve Years a Slave or a novel like The Handmaid’s Tale or a play like Angels in America or a work of history like Bury My Heart at Wounded Knee or of journalism like Michael Harrington’s The Other America prompts us to ask, “How could decent, intelligent people have believed they were entitled to treat other human beings like that?”

So let’s interrogate some of our beliefs about political morality with the eyes of our descendants. Two four-letter words lie at the heart of contemporary America’s public morality: “free” and “fair.” “It’s a free country” is every American’s boast; “I only want a fair shake” is every American’s plea. I doubt I need to remind many Commonweal readers of the more flagrant forms of unfairness in our national life—that one American child in five lives below or near the poverty line; that somewhere between 80 and 90 percent of our economy’s productivity gains since 1980 have gone to the top 10 percent of the income distribution; that the top twenty-five hedge-fund managers earn more than all the nation’s kindergarten teachers combined; that 100,000 Americans will die for lack of health care over the next ten years in order to give a large tax cut to Americans with incomes above a half-million dollars; and so on and so on, down the long and shameful catalog. You all read the newspapers. Our twenty-third-century descendants may ask—they will ask—how we could have tolerated such unfairness; but they won’t ask how we could have believed such inequalities to be fair, because we don’t, most of us, believe them to be fair. Let’s instead consider a different question: whether our present-day ideals of fairness and freedom, even if we lived up to them, would satisfy our descendants.

The average CEO now earns around three hundred times as much as his or her average employee. Many people are dismayed at the contrast with the good old days of the Eisenhower administration, when CEOs earned only thirty times as much as their average employees and paid a far higher tax rate, and yet the country didn’t exactly seem to be going to the dogs. But let’s put aside our reaction to this striking change and ask more generally whether and why some people ought to earn more than others.

The usual answer, I suppose, is that people deserve whatever they get through the operation of supply and demand. The competitive marketplace quantifies the value that one’s efforts have for others. Some people (like doctors) employ vital skills; some people (like baseball players) give exceptional enjoyment; some people (like corporate executives) assume extra responsibilities; some people (like investors) forego luxury consumption. All such people are rewarded in proportion to the satisfaction they furnish others, as measured by others’ willingness to pay, directly or indirectly, for those satisfactions. No payment, no service. As Adam Smith wrote: “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.”

Of course, it’s not that simple. Consider those doctors, baseball players, and executives I used as examples of economic agents who exchange services for money. In fact, they—like you, like me—live with only one foot in a market economy and the other in a gift economy. Any doctor or scientist or athlete or nurse or teacher or carpenter worth her salt feels at least occasionally that she is making a gift of her best efforts; and as with all such gifts, the chief reward is internal: the pleasures of giving and of exercising one’s faculties at their highest pitch.

Nowadays, the gift economy leads a precarious existence, appearing mostly in commencement-day addresses in which graduates are exhorted to follow their dreams, while most of the poor things are worrying frantically about how to pay their debts. The family is a gift economy, and so is culture, including both the arts and the sciences, as well as the shrinking public and nonprofit spheres. Ever since that most fateful of innovations, industrial mass production, has become virtually universal, the market economy has progressively squeezed out the gift economy. In a mature capitalist society, competition grows in both extent and intensity—that is, both between and within economic units. Creativity and generosity are not forbidden but they are no longer self-justifying; they are, on the contrary, subordinated, like all activity in the non-public sphere, to the goal of increasing shareholder value. In the private economy, you can do whatever you like—create beauty, pursue truth, help others—as long as what you like to do makes someone a profit.

I said earlier that people in a market economy are rewarded in proportion to others’ willingness to pay. That willingness to pay is the measure of value in a market economy; and so, to say that a person deserves what she earns is to say that there is at least a rough correspondence between the value of what she produces and the value of what she receives. As Milton Friedman, the high priest of American capitalism, put it: “The ethical principle [underlying] the distribution of income in a free-market society is, ‘To each according to what he and the instruments he owns produces.’”

This notion of desert rests on the assumption that two distinctions can be made rigorously: first, that one person’s input—to any output or outcome at all—can be sharply distinguished from all other inputs; second, that merit can be distinguished from luck—that is, that diligence, good judgment, talent, and other productive qualities and character traits are not fully attributable to biological endowment, early environment, education, and other contingent and therefore morally arbitrary sources. I don’t believe those distinctions hold up.

Let’s take that CEO, and let’s assume we know somehow that she produces thirty or three hundred times as much as her average employee. Causation is a transitive relation, and production is a kind of causation. If A is a cause of B, and B is a cause of C, then A is a cause of C. If A contributes to the production of B, and B contributes to the production of C, then A has contributed to the production of C. Now, who has contributed to the production of our CEO and, therefore, to the production of whatever she produces? Clearly, her parents, spouse, teachers, fellow students, predecessors, colleagues, rivals, and friends, along with all their parents, spouses, teachers, fellow students, predecessors, colleagues, rivals, and friends, along with all those who created the physical, organizational, and cultural resources employed in the production of whatever our CEO produces, along with all their parents, spouses, teachers, fellow students, predecessors, colleagues, rivals, and friends, and, it goes without saying, all their parents, spouses, teachers, and so on through what is, if one wants to insist on the point, an infinite chain of causes.

I do want to insist on the point. Einstein famously wrote: “I have all along been standing on the shoulders of giants.” So has our CEO. Exceptional contributions, whether to art, science, or the Gross National Product, are prepared for by the whole previous development of the field. People who make brilliant, courageous, and illuminating mistakes, which may be indispensable to the ultimate success of a rich and famous artist, scientist, or entrepreneur, are not, in a competitive market system, retrospectively and proportionately rewarded for their contributions, even though Friedman’s definition of justice would seem to require it.

My point is that all production is social production. The productive assets of every age are the joint product of all preceding ages, and all those born into the present are legitimately joint heirs of those assets. And the same arguments for joint rather than individual inheritance of wealth created in the past apply to the distribution of income in the present. If this seems counterintuitive, it is perhaps because there persists a deep and ancient distinction between luck and merit, according to which we deserve praise and reward for our good actions, though not for our good fortune. But what if our good actions are the results of our good fortune?

Philosophy assimilates scientific discoveries slowly. As a result, it is always riddled with archaic concepts and images, survivals from an earlier scientific epoch. One such survival, it seems to me, is the concept of merit. It has always been partly recognized (it is, indeed, implicit in the word “gifted”) that talents and aptitudes come under the heading of luck rather than merit. But the inescapable implication of modern genetics, neurobiology, and psychiatry is that character, no less than talent, is inherited or else formed by very early experiences. Diligence, decisiveness, initiative, coolness under pressure—all these entrepreneurial virtues—are, no less than intellectual or manual abilities, part of one’s natural endowment. And from a strictly moral point of view, no one deserves a reward for being born luckier than someone else. I imagine the twenty-third century will ask: “Why did you make talent and character the measure of an individual’s desert rather than of her obligations? How could you have overlooked what is to us the obvious and elementary principle of fairness: from each according to her abilities, to each according to her need?…”

If we could speak with our nineteenth-century counterparts, we might ask questions like: “Why did you believe it legitimate for one person to own another? Why did women seem to you incapable of self-determination? Why did you consider that political authority could be inherited, for example by monarchs or aristocrats?” If they defended their morality against ours, we might learn a good deal by trying to rebut them and vindicate our own moral intuitions.

Similarly, we should try to imagine which of our current beliefs might seem benighted to our twenty-third century descendants. I suspect they will want to ask us questions like: “Why did you base desert on performance, which can’t be measured and is in any case a function of one’s endowments? After all, no one deserves her endowments. Why did you make that strangely artificial distinction between the political and the economic? It looks as though your only purpose was to prevent economic democracy. Why did you define freedom so narrowly, as the absence of constraints on one person’s right to employ her capital but not on another person’s right to realize her capacities? Why did you assume that contracts between parties with radically unequal resources could be free?”

You should read it all and ask yourself: Why do we tolerate such radical inequalities?

Timothy Snyder, the noted historian of democracy and tyranny at Yale University, wrote a post listing fifteen reasons why the world needs Ukraine to win and defeat Russian aggression against its very existence as a nation. Most important is to stop the genocidal slaughter of Ukrainians. The New York Times documented 339 significant cultural sites—museums, performing arts centers for theater, music, and dance, historical sites, and other cultural treasures—that have been destroyed in the Russian effort to eliminate Ukrainian existence as a nation.

He writes:

Why does the world need a Ukrainian victory?

1. To halt atrocity. Russia’s occupation is genocidal. Wherever the Ukrainians recover territory, they save lives, and re-establish the principle that people have a right not to be tortured, deported, and murdered.

2. To preserve the international legal order. Its basis is that one country may not invade another and annex its territory, as Russia seeks to do. Russia’s war of aggression is obviously illegal, but the legal order does not defend itself.

3. To end an era of empire. This could be the last war fought on the colonial logic that another state and people do not exist. But this turning point is reached only if Russia loses.

4. To defend the peace project of the European Union. Russia’s war is not directed only against Ukraine, but against the larger idea that European states can peacefully cooperate. If empire prevails, integration fails.

5. To give the rule of law a chance in Russia. So long as Russia fights imperial wars, it is trapped in repressive domestic politics. Coming generations of Russians could live better and freer lives, but only if Russia loses this war.

6. To weaken the prestige of tyrants. In this century, the trend has been towards authoritarianism, with Putinism as a force and a model. Its defeat by a democracy reverses that trend. Fascism is about force, and is discredited by defeat.

7. To remind us that democracy is the better system. Ukrainians have internalized the idea that they choose their own leaders. In taking risks to protect their democracy, they remind us that we all must act to protect ours.

8. To lift the threat of major war in Europe. For decades, a confrontation with the USSR and then Russia was the scenario for regional war. A Ukrainian victory removes this scenario by making another Russian offensive implausible.

9. To lift the threat of major war in Asia. In recent years, a Chinese invasion of Taiwan has been the leading scenario for a global war. A Ukrainian victory teaches Beijing that such an offensive operation is costly and likely to fail.

10. To prevent the spread of nuclear weapons. Ukraine gave up nuclear weapons. Russia, a nuclear power, then invaded. If Ukraine loses, countries that can build nuclear weapons will feel that they need to do so to protect themselves.

11. To reduce the risk of nuclear war. A Ukrainian victory makes two major war scenarios involving nuclear powers less likely, and works against nuclear proliferation generally. Nothing would reduce the risk of nuclear war more than Ukrainian victory.

12. To head off future resource wars. Aside from being a consistent perpetrator of war crimes, Russia’s Wagner group seizes mineral resources by violence wherever it can. This is why it is fighting in Bakhmut.

13. To guarantee food supplies and prevent future starvation. Ukraine feeds much of the world. Russia threatens to use that food as a weapon. As one Russian propagandist put it, “starvation is our only hope.”

14. To accelerate the shift from fossil fuels. Putin shows the threat that hydrocarbon oligarchy poses to the future. His weaponization of energy supplies has accelerated the turn towards renewables. This will continue, if Russia loses.

15. To affirm the value of freedom. Even as they have every reason to define freedom as against something — Russian occupation –, Ukrainians remind us that freedom is actually for something, the right to be the people they wish to be, in a future they can help shape.

I am a historian of political atrocity, and for me personally number 1 — defeating an ongoing genocidal project — would be more than enough reason to want Ukrainian victory. But every single one of the other fourteen is hugely significant. Each presents the kind of opportunity that generations of policy planners wish for, but almost never get. Much has been done, we have not yet seen and seized the moment.

This is a once-in-lifetime conjuncture, not to be wasted. The Ukrainians have given us a chance to turn this century around, a chance for freedom and security that we could not have achieved by our own efforts, no matter who we happen to be. All we have to do is help them win.

23 January 2023

PS What can you do personally? Keep in touch with your elected representatives. Support military and humanitarian assistance. Make your views known. Write a letter to the editor. Share this post widely. Fly a Ukrainian flag. Put a sticker on your computer. Buy and wear Ukrainian merch. In great causes, small gestures matter.

If you want to keep Ukrainian soldiers alive, consider supporting this Ukrainian NGO and this international NGO (a 501(c)3). Here is a way to keep Ukrainians warm during winter (a 501(c)3). One of my commitments, with wonderful colleagues, has been Documenting Ukraine, a project that supports those in Ukraine who are chronicling the war (also a 501(c)3, “Partners” here). Thank you for reading, thinking, caring, and doing.

During President Biden’s State of the Union address, he said that Republicans want to cut Social Security and Medicare, and the Republican side of the chamber erupted in jeers and shouts of “liar!” Two of those loudly jeering—Senators Rick Scott of Florida and Mike Lee of Utah—had explicitly made those proposals. Biden then masterfully got the Republican caucuses in both Houses to declare their support for both big entitlement programs.

Michael Hiltzik, business columnist for the Los Angeles, sets the record straight about the Republican stance on Social Security.

From left, U.S. Sens. Rick Scott and Mike Lee jeer.

From left, GOP Sens. Rick Scott of Florida and Mike Lee of Utah jeer during the State of the Union address when President Biden accused Republicans of wanting to cut Social Security. Both senators have proposed exactly that.

(Andrew Caballero-Reynolds / AFP/Getty Images)

Hiltzik writes:

President Biden has congressional Republicans all asquirm as he conducts a post-State of the Union speech national tour.

Why? Because Biden has doubled down — or as Fox News has it, “tripled down” — on his assertion during the speech that the GOP has been planning to cut Social Security.

Not so, they say. Never happened. Sens. Mike Lee (R-Utah) and Rick Scott (R-Fla.) were even caught on camera during the speech wearing “Who, me?” expressions of injured innocence.

It will be my objective to phase out Social Security, to pull it out by the roots.

— Sen. Mike Lee (R-Utah), during his 2010 campaign for the Senate

Unfortunately for them, we have the evidence, as does Biden. Cutting Social Security along with Medicare has been part of the Republican platform for decades.

As I’ve reported before, they often hide their intentions behind a scrim of impenetrable jargon, plainly hoping that Americans won’t do the necessary math to penetrate their subterfuge.

Let’s take a jaunt through the GOP approach to Social Security and Medicare.

Start with their description of these programs as “entitlements,” which they’ve tried to turn into a dirty word. The truth is that they are entitlements, in the sense that most Americans have been paying into these programs for all their working lives, mostly through the payroll tax. So, yes, they’re “entitled” to receive benefits in return.

Republicans, including former Senate Majority Leader Mitch McConnell (R-Ky.), have consistently blamed the federal debt on “entitlements” — never mind that their 2017 tax cut for the wealthy has blown a multitrillion-dollar hole in the budget.

They know they’re on thin ice with the public when they talk about benefit cuts, which is why Sen. Joni Ernst (R-Iowa) once recommended discussing their ideas only “behind closed doors.”

Now we can turn to the specifics of Lee’s and Scott’s plans. In widely circulated videos from Lee’s first successful Senate campaign in 2010 he can be seen and heard stating as follows: “It will be my objective to phase out Social Security, to pull it out by the roots.” He said that was why he was running for the Senate, and added, “Medicare and Medicaid are of the same sort. They need to be pulled up.”

As for Scott, his 12-point “Rescue America” plan, issued last year, included a proposal to sunset all federal legislation after five years. “If a law is worth keeping, Congress can pass it again.” The implications for Social Security and Medicare, which were created by federal legislation, were unmistakable — so much so that the proposal made Republican officeholders’ skin crawl.

Vice President Mike Pence speaks to reporters during a visit to the Manning Farms, Wednesday, Oct. 9, 2019, in Waukee, Iowa. (AP Photo/Charlie Neibergall)

Column: Mike Pence, would-be president, has a plan to kill Social Security. It will cost you

McConnell disavowed the proposal on the spot and has continued to do so, telling a home-state radio host after the Biden speech that the sunset provision is “not a Republican plan.That was the Rick Scott plan.”

That said, it’s a priceless foil for Biden. When Republicans brayed during his speech that he was lying about it, he offered to make Scott’s manifesto available to anyone who called his office for it. At one of his subsequent appearances, a copy of Scott’s plan was placed on every seat.

The GOP can’t easily wriggle away from its intentions. Let’s examine the fiscal 2023 budget proposal issued by the Republican Study Committee, a key policy body, last June under the title “Blueprint to Save America.”

This plan would increase the Social Security full retirement age, which today is 66 or 67 (depending on one’s year of birth), to 70 by 2040. According to Kathleen Romig, the Social Security expert at the Center on Budget and Policy Priorities, this would translate into a 20% cut in lifetime benefits compared with current law.

As I’ve reported before, raising the full retirement age is a Trojan horse that would affect all retirees across the board, but harm Black workers, lower-income workers and those in physically demanding jobs the most.

It would create particular hardships for those choosing to retire early and collect their benefits prior to their full retirement age.

Doing so exacts a lifetime reduction in monthly benefits, based on a formula aimed at equalizing the lifetime benefit among those who retire early, those who wait until their full retirement age, and those who defer collecting until that age (they receive a bump-up in benefits for every year they delay, topping out at age 70).

Raising the full retirement age to 70, Romig calculates, would mean that retirees who start collecting at the minimum age of 62 would receive only 57% of their full benefit….

The Republican Study Committee also would make it harder for disabled workers to qualify for benefits, and would lengthen the period before those who are disabled and younger than 65 qualify for Medicare to five years from two. This falls into the category of balancing the budget on the backs of the most vulnerable members of society.


As for Medicare, the Republican Study Committee proposes raising the eligibility age, currently 65, so it matches the Social Security retirement age. It also would transfer many more Medicare accounts to private insurance. The committee claims this would save money.

The rest of his incisive analysis is behind a paywall, unfortunately. He demonstrates beyond doubt that Republicans have wanted for years to put these big programs on the chopping block, which are lifelines for senior citizens. They have no objections, however, to cutting the taxes of the wealthiest. That was Trump’s biggest accomplishment: tax cuts for those with the most.

David Dayen writes in The American Prospect about President Biden’s efforts to limit corporate power and spur competition.

Dayen begins:

On July 9, 2021, President Joe Biden signed one of the most sweeping changes to domestic policy since FDR. It was not legislation: His signature climate and health law would take another year to gestate. This was a request that the government get into the business of fostering competition in the U.S. economy again.

Flanked by Cabinet officials and agency heads, Biden condemned Robert Bork’s pro-corporate legal revolution in the 1980s, which destroyed antitrust, leading to concentrated markets, raised prices, suppressed wages, stifled innovation, weakened growth, and robbing citizens of the liberty to pursue their talents. Competition policy, Biden said, “is how we ensure that our economy isn’t about people working for capitalism; it’s about capitalism working for people.”null

The executive order outlines a whopping 72 different actions, but with a coherent objective. It seeks to revert government’s role back to that of the Progressive and New Deal eras. Breaking up monopolies was a priority then, complemented by numerous other initiatives—smarter military procurement, common-carrier requirements, banking regulations, public options—that centered competition as a counterweight to the industrial leviathan.

It’s been a year and a half since Biden signed the executive order; its architect, Tim Wu, has since rotated out of government. Not all of the 72 actions have been completed, though many have. Some were instituted rapidly; others have been agonizing. Some agencies have taken the president’s urging to heart; others haven’t. But the new mindset is apparent.

Seventeen federal agencies are named specifically, tasked with writing rules, tightening guidelines, and ramping up enforcement. I wrote to each agency, asking how they have complied with the order; all of them answered but one (the Federal Deposit Insurance Corporation, whose role is admittedly tangential). Even Cabinet departments that weren’t mentioned wrote in to explain their approach to competition. Clearly, agencies are aware of the emphasis being put on reorienting their mission.

Bringing change to large bureaucracies is often likened to turning around a battleship. One way to get things moving is to have the captain inform every crew member of the intention to turn the battleship around, counseling them to take every action from now on with that battleship-turning goal in mind. The small team that envisioned and executed the competition order put the weight of the presidency behind it, delivering a loud message to return to the fight against concentrations of power. It’s alarming and maybe a little disconcerting that you have to use a high-level form of peer pressure to flip the ship of state. But that battleship is starting to change course.

TIM WU WAS THE FIRST OF THE TRIUMVIRATE of Wu, Khan, and Kanter (a motto emblazoned on mugs by advocates) to actually get appointed in the Biden administration, joining the National Economic Council (NEC) to work on competition policy in early March 2021. Hiring the author of The Curse of Bigness signaled the administration’s strong anti-monopoly thrust. Khan (Lina, chair of the Federal Trade Commission) and Kanter (Jonathan, heading the Justice Department’s Antitrust Division) would arrive later.

The competition order was released four months after Wu’s appointment, but in reality, it was laid out over the previous five years. In that time, a collection of policymakers, journalists, lawyers, politicians, and experts, sometimes known as the New Brandeis movement, warned of the dangers of economic concentration. Wu, Khan, and Kanter were part of this crusade, and prior to the 2020 election, they and others strategized about how to reinvigorate competition policy if Democrats took the presidency.

This is an unusual story about an accomplishment or series of accomplishments that have gone unnoticed. Read on to the end.

An organization called Good Jobs First released a study about the economic impact of corporate tax breaks on public schools. They are working with state legislators to stop this harmful practice. Investing in better schools is key to economic development and social capital. Unfortunately, politicians get campaign contributions when they give generous corporate tax breaks.

Contact: Ron Deutsch at 518-469-6769 or rdeutschnyff@gmail.com

Greg LeRoy at goodjobs@goodjobsfirst.org or 202-494-0888

NYS Schools Lose $1.8 Billion Per Year to Corporate Tax Abatements, Far More than Any Other State

Economic Development Committee Chairs Senator Sean Ryan and 

Assemblyman Harry Bronson Introduce Legislation to Stop Such Abatements 

 

Washington, DC — Schools in New York State lost at least $1.8 billion in fiscal year 2021 to corporate tax abatements. That makes New York schools by far the biggest known losers to abatements, more than three times second-place South Carolina.

The study arrives as NYS legislators introduce a bill(S.89/A.351) that would prohibit Industrial Development Agencies (IDAs) from abating the school share of property taxes.

This study’s findings were enabled by a new government accounting rule that requires — for the first time ever — that most school districts, cities and counties disclose how much revenue they lose to such corporate tax breaks.

The study was released today by Good Jobs First, a Washington-based non-profit group focusing on economic development tax policy. The new reporting rule is Governmental Accounting Standards Board (GASB) Statement 77 on Tax Abatement Disclosures.

The $1.8 billion in revenue losses are spread among 318 of the state’s 685 public school districts. In all but five of those 318 districts, the losses are reported directly by the independent school district. In the “Big Five” cities (New York, Buffalo, Rochester, Syracuse and Yonkers), the school losses are computed as a share of overall city losses.

Tax abatements cost an average of $541 per pupil per year among the affected school districts, which puts New York in the country’s top five. But that average masks a wide range. For example, losses are just $3 per student per year in West Genesee, where the student body is 85% white, but over $5,000 for Peekskill, where nearly nine out of ten students are of color and over three-quarters qualify for free or reduced-price lunches. And from $5 per student per year in Hoosick Falls, which is almost all-white, to $2,000 per student for Uniondale where almost all attendees are of color.

 

“Our findings are the latest evidence of New York State’s failed economic development system,” said Greg LeRoy, executive director of Good Jobs First, which led the campaign to win the accounting reform. “When governments disinvest education in the name of economic development, they actually harm their business climates. If New York aspires to be a ‘sticky’ place for promising companies in the 21st century, it must have a highly educated workforce.”

State Senator Sean Ryan, Chair of the Senate Committee on Commerce, Economic Development and Small Business, said, “We all know that our state’s schools are engaged in a constant battle for the resources they need to provide our children the quality education they deserve. What most people would be surprised to learn is that property taxes are their primary source of revenue. When IDAs promise to waive a corporation’s property taxes, they are stealing money meant for school districts and exacerbating budget gaps. This forces us to increase school funding to close those gaps and sticks taxpayers with the bill. Prohibiting IDAs from waiving school taxes will support education, lower New Yorkers’ tax bills, and prevent corporations like Amazon from playing IDAs around the state against one another to get the best deal.”

Assemblymember Harry Bronson, Chair of the Assembly Standing Committee on Economic Development, Job Creation, Commerce and Industry, said: “Public education is key to opening opportunities; that is why I have fought so hard to secure funding for our schools and for our children. Public education is largely funded through real property taxes. Schools rely on this revenue, yet they lose it when IDA’s reduce business property tax obligations. These deals made by the IDAs may benefit business, but any supposed benefit is on the backs of our students, and all too often students of color. The report from Good Jobs First shows the damage to school funding and the educational process when school districts are excluded from the IDA negotiating process. The report is a clarion call to action, and I am pleased to sponsor this vital legislation introduced with Senator Ryan.”

 

“Our students, communities and educators deserve to receive the funds that are due to them so we can focus on what is our most important goal: educating the next generation,” said Andy Pallotta, president of New York State United Teachers, a statewide union with more than 600,000 members in education, human services, and health care. “As pointed out by Good Jobs First’s research, this is an issue of equity and we support efforts to make sure all of New York’s students have the opportunity for a world-class education. Education is not only the great equalizer, it is the real economic driver into New York’s future.”

“We strongly support the Ryan/Bronson bill. IDA tax breaks are a triple whammy of terrible tax policy. They do not work, they are unfair to other taxpayers, and they take funding away from public schools. IDA tax breaks aren’t free money. Economists call them ‘tax expenditures’ because they are a form of off-budget spending that takes public funding away from schools and other basic services,” said Dr. Elizabeth Marcello, Senior Research Analyst for Reinvent Albany.

 

Ron Deutsch, director of New Yorkers for Fiscal Fairness noted, “This groundbreaking report from Good Jobs First should be a wake-up call for legislators and parents alike. Nearly $2 billion in property tax revenue is being diverted from our schools and provided to wealthy corporations with highly dubious outcomes and benefits to the community. Kudos to Senator Ryan and Assemblymember Bronson for introducing legislation that would prevent IDA’s from doling out school revenue like candy and giving away our kids future.”

 

“State lawmakers need to take action: it’s time to stop wasteful giveaways by local IDAs that defund our local schools and drive-up property taxes,” said Michael Kink, executive director of the Strong Economy For All Coalition. “We call on the Senate and Assembly to include the Ryan-Bronson legislation in their one-house budget bills and make them a top priority for this year’s state budget, due April 1.”

“The State is finally fully funding Foundation Aid to conclude a 30-year legal and legislative fight. It’s rather unfortunate that all this time, it’s been giving billions away in the form of unnecessary local IDAs. All this money could be better spent in our public schools, to expand early childhood education, not as giveaways that return nothing to the local community,” said Jasmine Gripper, Executive Director of Alliance for Quality Education. “Senator Ryan and Assemblymember Bronson’s bill will ensure schools and teachers have the public funds necessary to support every student’s well-being. It’s time for New York’s long history of prioritizing corporations over communities to end.”

“There are far more beneficial ways to foster economic development than giving 1.8 billion away from our public schools for corporate tax breaks. A better approach is to keep our public schools strong and well-funded so that communities are more attractive to corporations wanting to relocate or remain in the community. Our children should not become unwitting philanthropists for ill-conceived economic development projects. Moreover, homeowners, who pay the highest property taxes in the nation, expect municipalities to be good stewards of the tax dollars they receive and do not look kindly on the upward pressure placed on their tax bills from unwarranted corporate tax breaks,” said the Reverend Peter Cook, Executive Director, New York State Council of Churches.

Note: Good Jobs First is a non-profit, non-partisan policy research center founded in 1998. See more about GASB Statement 77 at https://goodjobsfirst.org/tax-abatement-disclosures/ .

 

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