jayaprada:

Discretionary Government Spending: Priorities

”[…]The war has increased the wealth of the small and medium bourgeoisie. In the war and for the war, the capitalist apparatus of economic government and political government militarized itself: the factory became a barracks, the city became a barracks, the nation became a barracks. All the activities of general interest have been nationalized, bureaucratized, militarized. To bring about this monstrous construction, the state and the minor capitalist associations made a mass mobilization of the small and medium bourgeoisie.”

—Antonio Gramsci, The events of 2-3 December (1919)

(via titotansey)

questionall:

1. Only THREE PERCENT of the very rich are entrepreneurs.

According to both Marketwatch and economist Edward Wolff, over 90 percent of the assets owned by millionaires are held in a combination of low-risk investments (bonds and cash), personal business accounts, the stock market, and real estate. Only 3.6 percent of taxpayers in the top .1% were classified as entrepreneurs based on 2004 tax returns. A 2009 Kauffman Foundation study found that the great majority of entrepreneurs come from middle-class backgrounds, with less than 1 percent of all entrepreneurs coming from very rich or very poor backgrounds.

2. Only FOUR OUT OF 150 countries have more wealth inequality than us.

In a world listing compiled by a reputable research team (which nevertheless prompted double-checking), the U.S. has greater wealth inequality than every measured country in the world except for Namibia, Zimbabwe, Denmark, and Switzerland.

3. An amount equal to ONE-HALF the GDP is held untaxed overseas by rich Americans.

The Tax Justice Network estimated that between $21 and $32 trillion is hidden offshore, untaxed. With Americans making up 40% of the world’s Ultra High Net Worth Individuals, that’s $8 to $12 trillion in U.S. money stashed in far-off hiding places.

Based on a historical stock market return of 6%, up to $750 billion of income is lost to the U.S. every year, resulting in a tax loss of about $260 billion.

4. Corporations stopped paying HALF OF THEIR TAXES after the recession.

After paying an average of 22.5% from 1987 to 2008, corporations have paid an annual rate of 10% since. This represents a sudden $250 billion annual loss in taxes.

U.S. corporations have shown a pattern of tax reluctance for more than 50 years, despite building their businesses with American research and infrastructure. They’ve passed the responsibility on to their workers. For every dollar of workers’ payroll tax paid in the 1950s, corporations paid three dollars. Now it’s 22 cents.

5. Just TEN Americans made a total of FIFTY BILLION DOLLARS in one year.

That’s enough to pay the salaries of over a million nurses or teachers or emergency responders.

That’s enough, according to 2008 estimates by the Food and Agriculture Organization and the UN’s World Food Program, to feed the 870 million people in the world who are lacking sufficient food.

For the free-market advocates who say “they’ve earned it”: Point #1 above makes it clear how the wealthy make their money.

6. Tax deductions for the rich could pay off 100 PERCENT of the deficit.

Another stat that required a double-check. Based on research by the Tax Policy Center, tax deferrals and deductions and other forms of tax expenditures (tax subsidies from special deductions, exemptions, exclusions, credits, capital gains, and loopholes), which largely benefit the rich, are worth about 7.4% of the GDP, or about $1.1 trillion.

Other sources have estimated that about two-thirds of the annual $850 billion in tax expenditures goes to the top quintile of taxpayers.

7. The average single black or Hispanic woman has about $100 IN NET WORTH.

The Insight Center for Community Economic Development reported that median wealth for black and Hispanic women is a little over $100. That’s much less than one percent of the median wealth for single white women ($41,500).

Other studies confirm the racially-charged economic inequality in our country. For every dollar of NON-HOME wealth owned by white families, people of color have only one cent.

8. Elderly and disabled food stamp recipients get $4.30 A DAY FOR FOOD.

Temporary Assistance for Needy Families (TANF) has dropped significantly over the past 15 years, serving only about a quarter of the families in poverty, and paying less than $400 per month for a family of three for housing and other necessities. Ninety percent of the available benefits go to the elderly, the disabled, or working households.

Food stamp recipients get $4.30 a day.

9. Young adults have lost TWO-THIRDS OF THEIR NET WORTH since 1984.

21- to 35-year-olds: Your median net worth has dropped 68% since 1984. It’s now less than $4,000.

That $4,000 has to pay for student loans that average $27,200. Or, if you’re still in school, for $12,700 in credit card debt.

With an unemployment rate for 16- to 24-year-olds of almost 50%, two out of every five recent college graduates are living with their parents. But your favorite company may be hiring. Apple, which makes a profit of $420,000 per employee, can pay you about $12 per hour.

10. The American public paid about FOUR TRILLION DOLLARS to bail out the banks.

That’s about the same amount of money made by America’s richest 10% in one year. But we all paid for the bailout. And because of it, we lost the opportunity for jobs, mortgage relief, and educational funding.

Bonus for the super-rich: A QUADRILLION DOLLARS in securities trading nets ZERO sales tax revenue for the U.S.

The world derivatives market is estimated to be worth over a quadrillion dollars (a thousand trillion). At least $200 trillion of that is in the United States. In 2011 the Chicago Mercantile Exchange reported a trading volume of over $1 quadrillion on 3.4 billion annual contracts.

A quadrillion dollars. A sales tax of ONE-TENTH OF A PENNY on a quadrillion dollars could pay off the deficit. But the total sales tax was ZERO.

It’s not surprising that the very rich would like to fudge the numbers, as they have the nation.

(via resmc)

(Source: rigatonideology, via class-struggle-anarchism)

mapsontheweb:

Cartogram of the World’s Billionaires , Forbes

This illustrates how perverse the notions of unavoidable poverty and austerity are.

(via thenationmagazine)

realitista:

The official doctrines suffer from a number of familiar “market inefficiencies,” among them the failure to take into account the effects on others in market transactions. The consequences of these “externalities” can be substantial. The current financial crisis is an illustration. It is partly traceable to the major banks and investment firms’ ignoring “systemic risk” – the possibility that the whole system would collapse – when they undertook risky transactions.

Environmental catastrophe is far more serious: The externality that is being ignored is the fate of the species. And there is nowhere to run, cap in hand, for a bailout.

In future, historians (if there are any) will look back on this curious spectacle taking shape in the early 21st century. For the first time in human history, humans are facing the significant prospect of severe calamity as a result of their actions – actions that are battering our prospects of decent survival.

Those historians will observe that the richest and most powerful country in history, which enjoys incomparable advantages, is leading the effort to intensify the likely disaster. Leading the effort to preserve conditions in which our immediate descendants might have a decent life are the so-called “primitive” societies: First Nations, tribal, indigenous, aboriginal.

The countries with large and influential indigenous populations are well in the lead in seeking to preserve the planet. The countries that have driven indigenous populations to extinction or extreme marginalization are racing toward destruction.

Thus Ecuador, with its large indigenous population, is seeking aid from the rich countries to allow it to keep its substantial oil reserves underground, where they should be.

Meanwhile the U.S. and Canada are seeking to burn fossil fuels, including the extremely dangerous Canadian tar sands, and to do so as quickly and fully as possible, while they hail the wonders of a century of (largely meaningless) energy independence without a side glance at what the world might look like after this extravagant commitment to self-destruction.

This observation generalizes: Throughout the world, indigenous societies are struggling to protect what they sometimes call “the rights of nature,” while the civilized and sophisticated scoff at this silliness.

This is all exactly the opposite of what rationality would predict. [++]

(Source: theamericanbear)

smdxn:

“The wealth gap between blacks and whites has nearly tripled over the past 25 years, due largely to inequality in home ownership, income, education and inheritances, according to a new study by Brandeis University”

(via other-stuff)

(via azspot)

climateadaptation:

How To Save A Public Library: Make It A Seed Bank. A small town library is ‘saved’ with a clever, resident run seed bank. NPR presents this as a clever solution to the problem of one shrinking library.

There about 120,000 libraries in the US. I agree that diversifying services (to an extent) is always good for any system (diversity is the essence of adaptation). What really needs to happen is for libraries to analyze who they serve and consolidate or close systems where necessary.

Still, it’s a nice little story that warms hearts on a cold winters day.

Here’s how it works: A library card gets you a packet of seeds. You then grow the fruits and vegetables, harvest the new seeds from the biggest and best, and return those seeds so the library can lend them out to others.

Syson says tending a garden in Western Colorado can be frustrating. The dry climate, alkaline soils and short growing season keep many novices from starting. She’ll take seeds from the plants that withstand pests and persevere through drought.

“If you save seed from those plants, already, in one generation, you will now be able to grow a plant that has those traits,” Syson says.

The seed packets are a novelty within the library’s more mainstream collection of books, CDs and DVDs.

The library’s director, Barbara Milnor, says in the age of digital, downloadable books and magazines, the tangible seed packets are another way to draw people in.

Via NPR

(via resmc)

A Practical Utopian’s Guide to the Coming Collapse

David Graeber

(via bostonreview)

Basic Income, a new human right

The common sense case for a guaranteed minimum income from the European Citizens’ Initiative for an Unconditional Basic Income.

Basic Income should universal, individual, unconditional, and high enough to ensure a dignified existence and participation in society.

The only western countries in surplus are two Scandinavian social democracies (followed by fellow two nations with the smallest deficits, including Iceland, who let their banks fail and jailed economy-crashing banksters rather than imposing damaging neoliberal austerity on its society).

(Source: twitter.com)

thepeoplesrecord:

U.S. – spending slightly up; income drastically down with austerity on its way means tragic economy for working-class Americans
March 2, 2013

U.S. consumer spending rose in January as Americans spent more on utilities, with savings providing a cushion after income recorded its biggest drop in 20 years.

The Commerce Department said on Friday consumer spending increased 0.2 percent in January after a revised 0.1 percent rise the prior month. Spending had previously been estimated to have increased 0.2 percent in December.

January’s increase was in line with economists’ expectations. Consumer spending accounts for about 70 percent of U.S. economic activity and when adjusted for inflation, it gained 0.1 percent after a similar increase in December.

Though spending rose in January, it was supported by a rise in services, probably related to utilities consumption after a cold snap during the month.

Spending on goods fell, suggesting some hit from the expiration at the end of 2012 of a 2 percent payroll tax cut. Tax rates for wealthy Americans also increased.

The impact is expected to be larger in February’s spending data and possibly extend through the first half of the year as households adjust to smaller paychecks, which are also being strained by rising gasoline prices.

“We expect a significant decrease in real consumer spending in the first half of the year,” said Yelena Shulyatyeva, U.S. economist at BNP Paribas, New York.

“We are looking for a very subdued Q1 reading, and that’s the effect from the fiscal tightening. That will weigh significantly on first-quarter GDP, which we expect at 1.2 percent.

GDP advanced at a 0.1 percent rate in the last three months of 2012, with consumer spending rising at a healthy 2.1 percent annual pace.

Income tumbled 3.6 percent, the largest drop since January 1993. Part of the decline was payback for a 2.6 percent surge in December as businesses, anxious about higher taxes, rushed to pay dividends and bonuses before the new year.

Taking into account the higher taxes that went into effect at the start of the year, the squeeze on households was even greater. The income at the disposal of households after inflation and taxes plunged a 4.0 percent in January after advancing 2.7 percent in December.

Excluding the unwinding of the dividend and bonus boost, disposable income increased 0.3 percent in January.

With income dropping sharply and spending rising, the saving rate - the percentage of disposable income households are socking away - fell to 2.4 percent, the lowest level since November 2007. The rate had jumped to 6.4 percent in December.

Savings were the smallest since December 2007.

Inflation was largely contained, even though gasoline prices pushed higher. A price index for consumer spending was flat for a second straight month.

That left its increase over the past 12 months at 1.2 percent, the smallest since October 2009. It increased 1.4 percent in December.

So-called core prices, which strip out food and energy costs, edged up 0.1 percent after being flat the prior month. The year-on-year gain was 1.3 percent, the smallest since April 2011 and well below the Federal Reserve’s 2 percent target.

The U.S. central bank last year embarked on an open-ended bond buying program and said it would keep it up until it saw a substantial improvement in the outlook for the labor market. It hopes the purchases will drive down borrowing costs.

Weak growth and benign inflation could compel the Fed to maintain it’s very easy monetary policy stance.

Source

(via other-stuff)

(via azspot)

thepeoplesrecord:

World’s 100 richest earned enough in 2012 to end global poverty 4 times over
January 20, 2013 

The world’s 100 richest people earned a stunning total of $240 billion in 2012 – enough money to end extreme poverty worldwide four times over, Oxfam has revealed, adding that the global economic crisis is further enriching the super-rich.

“The richest 1 percent has increased its income by 60 percent in the last 20 years with the financial crisis accelerating rather than slowing the process,” while the income of the top 0.01 percent has seen even greater growth, a new Oxfam report said.

For example, the luxury goods market has seen double-digit growth every year since the crisis hit, the report stated. And while the world’s 100 richest people earned $240 billion last year, people in “extreme poverty” lived on less than $1.25 a day.

Oxfam is a leading international philanthropy organization. Its new report, ‘The Cost of Inequality: How Wealth and Income Extremes Hurt us All,’ argues that the extreme concentration of wealth actually hinders the world’s ability to reduce poverty.

The report was published before the World Economic Forum in Davos next week, and calls on world leaders to “end extreme wealth by 2025, and reverse the rapid increase in inequality seen in the majority of countries in the last 20 years.”

Oxfam’s report argues that extreme wealth is unethical, economically inefficient, politically corrosive, socially divisive and environmentally destructive.

The problem is a global one, Oxfam said: “In the UK inequality is rapidly returning to levels not seen since the time of Charles Dickens. In China the top 10 percent now take home nearly 60 percent of the income. Chinese inequality levels are now similar to those in South Africa, which is now the most unequal country on Earth and significantly more [inequality] than at the end of apartheid.”

In the US, the richest 1 percent’s share of income has doubled since 1980 from 10 to 20 percent, according to the report. For the top 0.01 percent, their share of national income quadrupled, reaching levels never seen before.

“We can no longer pretend that the creation of wealth for a few will inevitably benefit the many – too often the reverse is true,” Executive Director of Oxfam International Jeremy Hobbs said.

Hobbs explained that concentration of wealth in the hands of the top few minimizes economic activity, making it harder for others to participate: “From tax havens to weak employment laws, the richest benefit from a global economic system which is rigged in their favor.”

The report highlights that even politics has become controlled by the super-wealthy, which leads to policies “benefitting the richest few and not the poor majority, even in democracies.”

The report proposes a new global deal to world leaders to curb extreme poverty to 1990s levels by:

- closing tax havens, yielding $189bn in additional tax revenues

- reversing regressive forms of taxation

- introducing a global minimum corporation tax rate

- boosting wages proportional to capital returns

- increasing investment in free public services

“It is time our leaders reformed the system so that it works in the interests of the whole of humanity rather than a global elite,” the report said.

The four-day World Economic Forum will be held in Davos starting next Wednesday. World financial leaders will gather for an annual meeting that will focus on reviving the global economy, the eurozone crisis and the conflicts in Syria and Mali.

Source

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(via cognitivedissonance)