Five Ugly Extremes of Inequality in America — The Contrasts Will Drop Your Chin to the Floor

By Paul Buchheit 

David and Charles Koch: a blight on the face of the planet, and that's not figuratively.

David and Charles Koch: a blight on the face of the planet, and that’s not figuratively.

The first step is to learn the facts, and then to get angry and to ask ourselves, as progressives and caring human beings, what we can do about the relentless transfer of wealth to a small group of well-positioned Americans.

1. $2.13 per hour vs. $3,000,000.00 per hour

Each of the Koch brothers saw his investments grow by $6 billion [3] in one [4] year, which is three million dollars per hour based on a 40-hour ‘work’ week. They used some of the money to try to kill renewable energy [5]standards around the country.

Their income portrays them, in a society measured by economic status, as a million times more valuable than the restaurant server [6] who cheers up our lunch hours while hoping to make enough in tips to pay the bills.

A comparison of top and bottom salaries within large corporations is much less severe, but a lot more common. For CEOs and minimum-wage workers, the difference [7] is $5,000.00 per hour vs. $7.25 per hour.

2. A single top income could buy housing for every homeless person in the U.S.

On a winter day in 2012 over 633,000 people were homeless [8] in the United States. Based on an annual single room occupancy (SRO) cost [9] of $558 per month, any ONE of the ten richest Americans [3] would have enough with his 2012 income to pay for a room for every homeless person in the U.S. for the entire year [4]. These ten rich men together made more than our entire housing budget [10].

For anyone still believing “they earned it,” it should be noted that most [11] of the Forbes 400 earnings came from minimally-taxed [12], non-job-creating capital gains.

3. The poorest 47% of Americans have no wealth

In 1983 the poorest 47% [13] of America had $15,000 per family, 2.5 percent [14] of the nation’s wealth.

In 2009 the poorest 47% [13] of America owned ZERO PERCENT [14] of the nation’s wealth (their debt exceeded their assets).

At the other extreme, the 400 wealthiest Americans [15] own as much wealth as 80 million families — 62% of America [14]. The reason, once again, is the stock market. Since 1980 the American GDP has approximatelydoubled [16]. Inflation-adjusted wages have gone down [17]. But the stock market has increased by over ten times [18], and the richest quintile of Americans owns 93% [19] of it.

4. The U.S. is nearly the most wealth-unequal country in the entire world

Out of 141 countries, the U.S. has the 4th-highest degree of wealth inequality [20] in the world, trailing only Russia, Ukraine, and Lebanon.

Yet the financial industry keeps creating new wealth for its millionaires. According to the authors of theGlobal Wealth Report [21], the world’s wealth has doubled in ten years, from $113 trillion to $223 trillion, and is expected to reach $330 trillion by 2017.

5. A can of soup for a black or Hispanic woman, a mansion and yacht for the businessman

That’s literally true. For every one dollar of assets owned by a single black or Hispanic woman [22], a member of the Forbes 400 has over forty million dollars [23].

Minority families once had substantial equity in their homes, but after Wall Street caused the housing crash, median wealth [24] fell 66% for Hispanic households and 53% for black households. Now the average single black or Hispanic woman has about $100 in net worth [22].

What to do?

End the capital gains giveaway [25], which benefits the wealthy almost exclusively.

Institute a Financial Speculation Tax [26], both to raise needed funds from a currently untaxed subsidy on stock purchases, and to reduce the risk of the irresponsible trading that nearly brought down the economy.

Perhaps above all, we progressives have to choose one strategy and pursue it in a cohesive, unrelenting attack on greed. Only this will heal the ugly gash of inequality that has split our country in two.

ABOUT THE AUTHOR
Paul Buchheit teaches economic inequality at DePaul University. He is the founder and developer of the Web sites UsAgainstGreed.org, PayUpNow.org and RappingHistory.org, and the editor and main author of “American Wars: Illusions and Realities” (Clarity Press). He can be reached at paul@UsAgainstGreed.org.


Source URL: http://www.alternet.org/economy/five-ugly-extremes-inequality-america-contrasts-will-drop-your-chin-floor
[2] http://www.alternet.org/authors/paul-buchheit
[3] http://www.forbes.com/forbes-400/
[4] http://finance.yahoo.com/news/pf_article_113540.html
[5] http://www.huffingtonpost.com/elliott-negin/koch-brothers-fund-bogus-_b_2253472.html
[6] http://www.thenation.com/blog/166328/week-poverty-obamas-budget-your-servers-budget
[7] http://www.huffingtonpost.com/2012/05/25/average-ceo-pay-2011_n_1545225.html
[8] http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2012/HUDNo.12-191
[9] http://www.cookcountyassessor.com/forms/cls2srob.pdf
[10] http://en.wikipedia.org/wiki/2013_United_States_federal_budget
[11] http://faireconomy.org/sites/default/files/BornOnThirdBase2012.pdf
[12] http://www.alternet.org/economy/5-obscene-reasons-why-richest-americans-grow-richer-middle-class-declines?paging=off
[13] http://newsfeed.time.com/2012/12/13/mitt-romneys-47-percent-gaffe-tops-yales-quotes-of-the-year/
[14] http://epi.3cdn.net/2a7ccb3e9e618f0bbc_3nm6idnax.pdf
[15] http://www.nytimes.com/2012/11/26/opinion/buffett-a-minimum-tax-for-the-wealthy.html?_r=0
[16] http://www.multpl.com/us-gdp-inflation-adjusted/table
[17] http://www.un.org/en/ga/second/64/pollin.pdf
[18] http://stockcharts.com/freecharts/historical/djia1900.html
[19] http://www.levyinstitute.org/pubs/wp_589.pdf
[20] http://www.usagainstgreed.org/GiniWealthIncomeAll.xls
[21] https://infocus.credit-suisse.com/data/_product_documents/_shop/368327/2012_global_wealth_report.pdf
[22] http://www.insightcced.org/uploads/CRWG/LiftingAsWeClimb-WomenWealth-Report-InsightCenter-Spring2010.pdf
[23] http://www.huffingtonpost.com/2012/09/19/richest-people-america-forbes-400_n_1896828.html
[24] http://www.msnbc.msn.com/id/43887485/ns/business-eye_on_the_economy/t/wealth-america-whites-leave-minorities-behind/
[25] http://money.msn.com/tax-tips/post.aspx?post=61f838e6-9d67-477d-983f-9f5a7e52691f
[26] http://democracyforamerica.com/pages/738?t=kos2
[27] http://www.alternet.org/tags/wealth
[28] http://www.alternet.org/%2Bnew_src%2B



The drive to a war crime

By Ashley Smith. Socialist Worker

Antiwar protest in New York. Dismissed by the establishment.

Throngs of antiwar protesters joined together in New York City on February 15, 2003. As it never happened.  Dismissed by the establishment, with scant media coverage.

 

Ten years ago this week, George W. Bush launched the invasion of Iraq. Bush and Co. intended the second Iraq War as a stepping-stone to wider domination of the Middle East, and they claimed victory when Saddam Hussein’s dictatorial regime fell quickly. But within months, the U.S. faced mass resistance to the occupation, and 10 years later, the war represents both a setback for U.S. imperialism and a catastrophic human tragedy.

 

In the first article in a four-part series on the anniversary of the invasion, Ashley Smith looks at the fanatical drive toward a war that was always about oil profits and imperial power.

GEORGE W. BUSH and his administration justified the war on Iraq with a series of colonial fantasies.

They claimed the U.S. had to topple Saddam Hussein to prevent his regime from developing weapons of mass destruction (WMD) and using them against the U.S. or selling them to al-Qaeda. They promised the war would emancipate the Iraqi people from dictatorship and establish a democracy that would be a model for the rest of the Middle East.

But the U.S. war and occupation accomplished nothing of the sort. Instead, it laid waste to a whole country. By 2006, just three years into the occupation, the British medical journal The Lancet estimated that the war was responsible for the deaths of over 650,000 Iraqis. The United Nations High Commission on Refugees reports that 1.7 million Iraqis were displaced within the country and another 2 million Iraqis fled, becoming refugees in the surrounding region.

People in the U.S. also paid a heavy price for the war. Close to 4,500 American soldiers died and over 32,000 were wounded. Nobel Prize-winning economist Joseph Stieglitz estimates that the war will cost $3 trillion when all is said and done. That enormous price tag helped trigger the government deficit crisis that has led politicians to enact deep cuts in social programs and mass layoffs of government employees.

– – – – – – – – – – – – – – – –
Propaganda and Reality

 

To justify its disastrous war, the U.S. government did what Howard Zinn taught us all capitalist governments do: it lied. How else can a state of, by and for the 1 Percent convince the rest of us to go along with policies that only benefit them?

First and foremost, Bush and Co. manipulated the tragedy of September 11, 2001, when al-Qaeda operatives flew highjacked planes into the World Trade Center and Pentagon. They whipped up patriotic support for the invasion and occupation of Afghanistan. Suddenly, Bush’s approval ratings, which had hovered around 50 percent or less in the wake of his theft of the 2000 presidential election, soared to near 90 percent.

Flush with newfound strength, the Bush White House launched a campaign of lies, distortion and disinformation to justify the invasion of Iraq. The administration claimed it had evidence that Saddam Hussein possessed both the technology and capacity to build chemical and nuclear WMDs, had links with al-Qaeda and was preparing for attacks on the U.S.

The administration trotted out a set of completely unreliable witnesses like conspiracy nut Laurie Mylroie, who claimed without credible evidence that Iraq was behind the 1993 World Trade Center bombing, the 9/11 attacks and the anthrax postal attacks that followed September 11. They also rolled out Iraqi expatriates like convicted embezzler and State Department favorite Ahmed Chalabi, as well as CIA asset Ayad Alawi.

Based on these paid informants, the CIA gave Bush the “intelligence” he needed to prove that Saddam Hussein’s regime was a threat. In his book Fiasco: The American Military Intervention in Iraq, journalist Thomas Ricks of the Washington Post argues that the CIA’s National Intelligence Estimate (NIE) presented “opinion as fact. As a political document that made the case for war the NIE of October 2002 succeeded brilliantly. As a professional intelligence product, it was shameful. But it did its job, which wasn’t really to assess Iraqi weapons but to sell a war.”

This campaign of disinformation culminated in the ludicrous testimony of Bush’s Secretary of State Colin Powell at a special session of the United Nations Security Council to “prove” that Iraq was in violation of UN resolutions. He trotted out fabricated evidence about Iraq’s chemical weapons, its supposed development of nuclear weapons and Iraqi support for terrorism.

Once the U.S. invaded Iraq, no one ever found evidence to support any of these claims–despite the best efforts of the administration. As David Corn writes, “Virtually all of the allegations Powell presented would turn out to be wrong.”

– – – – – – – – – – – – – – – –
War for Oil and Empire

Powell’s case for war was sheer propaganda. But elsewhere, the Bush administration bluntly stated the real reasons–oil and empire.

Federal Reserve Chair Alan Greenspan famously remarked: “I am saddened that it is politically inconvenient to acknowledge what everyone knows: that the Iraq War is largely about oil.” Bush press secretary Ari Fleischer, in one of the best Freudian slips of the verbally clumsy administration, referred to the Iraq War in a press conference as Operation Iraqi Liberation (OIL).

Many of the administration’s key players, like Vice President Dick Cheney, had been members of the Project for the New American Century (PNAC). This group of neoconservatives advocated preemptive military action to install compliant regimes in Iraq and other Middle Eastern countries, and thereby secure American global hegemony against potential international rivals, many of which depend on the region’s oil to fuel their economies.

But the neocons knew they needed some catalyzing event to build popular support for such imperial aggression. Thus, in one of their early documents, they for all intents and purposes hoped for “some catastrophic and catalyzing event–like a new Pearl Harbor.” Even before they found that event in 9/11, however, PNAC and its legislative allies grew in strength, convincing President Bill Clinton to enshrine regime change against Saddam Hussein as official policy in the 1998 Iraq Liberation Act.

The Bush administration was also disproportionately drawn from the oil industry. The president himself was a failed oil executive; National Security Advisor Condoleezza Rice was so close to Chevron that the company christened one of its oil tankers in her name. Cheney had been CEO of the oil service company Halliburton. As head of the National Energy Policy Development Group, Cheney developed an energy strategy of maximum extraction to fend off the impact of peak oil on the U.S. and global economy.

To accomplish this, the U.S. needed to force OPEC nations to increase their oil production. But as Michael Klare argues in Blood and Oil, the Bush administration realized:

the Persian Gulf countries had neither the will nor the capacity to increase their petroleum output and protect its outward flow. If the administration’s energy plan was to succeed, the United States would have to become the dominant power in the region, assuming responsibility for overseeing the politics, the security and the oil output of the producing countries.

Thus, the Bush administration from the beginning planned a series of rolling regime changes in the region to install allied governments and open up nationalized oil industries to multinational oil companies, which would in turn increase oil production. The White House developed a new Bush Doctrine of “preventive war” to justify invading countries it deemed potential future threats.

In the dreams of the neocons, Iraq would be just the first of many U.S. invasions against what Bush called an “Axis of Evil,” including North Korea, Iraq and Iran. Thus, it became common for Bush apparatchiks to joke, “Everyone wants to go to Baghdad, but real men want to go to Tehran.” By controlling the Middle East’s oil reserves, the U.S. would be in a position to bully all other potential rivals, especially China, which the Bush administration had categorized as a strategic competitor.

All the concocted lies about WMDs and international terrorism were alibis; oil and empire were the real goals.

– – – – – – – – – – – – – – – –
The Watchdogs and the Opposition Roll Over

Instead of investigating and exposing these imperial motives, the corporate media on the whole became a megaphone for the Bush administration. The New York Times, which claims to be America’s newspaper of record, was one of the worst of offenders. Judith Miller, one of its top Washington reporters, plumbed the lowest depths of yellow journalism.

She and Michael Gordon abandoned even the semblance of “neutrality” in their infamous article “Threats and Responses,” in which they recycled every dubious claim from Ahmad Chalabi and the Bush administration about Iraq’s supposed development of WMDs. They ominously intoned: “Washington dare not wait until analysts have found hard evidence that Mr. Hussein has acquired a nuclear weapon. The first sign of a ‘smoking gun,’ [unnamed officials] argue, may be a mushroom cloud.”

The Bush administration planted this disinformation with Miller and Gordon–and then, in an Orwellian turn of the screw, repeatedly referenced their article to make the case for war. Cheney appeared on Meet the Press and stated that the “liberal” Times had found evidence that Iraq possessed WMDs and was an imminent threat to the U.S.

The “less respectable” corporate media engaged in even sleazier tactics. Rupert Murdoch’s New York Post emblazoned one of its edition with the headline “Doomsday Plot: Saddam Aims to Give Terrorists Briefcase Bio-Bombs.”

One of the worst elements of the pro-war media was the steady drumbeat of Islamophobia. The neoconservatives in and around the administration presented Islam as an enemy of Western civilization. “Like communism during the Cold War,” wrote Daniel Pipes, “Islam is a threat to the West.”

This demonization of an entire religion and people now pervades not only the news media, but also popular culture, as can be seen with TV shows and movies like Homeland and Argo. And it has become a key tool in justifying almost any military action in the Middle East.

The behavior of the supposed political “opposition” to the Bush administration–the Democratic Party–was no different from the lapdog media. As Stephen Zunes notes, “[T]he October 2002 resolution authorizing the invasion had the support of the majority of Democratic senators, as well as the support of the Democratic Party leadership in both the House and the Senate.”

No one should have expected anything different. After all, the Democrats started every U.S. war of the 20th century until the first Gulf War under George Bush Sr.

As Hillary Clinton, then a senator from New York, ranted on the floor of the Senate: “Saddam Hussein has worked to build his chemical and biological weapons stock, his missile delivery capability and his nuclear program. He has given aid, comfort and sanctuary to terrorists, including al-Qaeda members.” Even after the catastrophe of the war, Clinton continued to defend her vote, restricting her criticism to how the Bush administration carried out the war.

Similarly, John Kerry told the Democratic Leadership Council in 2002, “I agree completely with this administration’s goal of a regime change in Iraq.” His only hint of criticism at the time was the president’s failure to build an adequate international coalition in support of the war.

Joe Lieberman, then a Democratic senator and the party’s 2000 vice presidential nominee, positioned himself as the most ardent supporter of the Bush administration, eventually leaving the Democrats to become an independent. As late as 2005, long after the war had become a disaster, he declared, “It is time for Democrats who distrust President Bush to acknowledge that he will be commander-in-chief for three more critical years, and that in matters of war, we undermine presidential credibility at our nation’s peril.”

– – – – – – – – – – – – – – – –
The Antiwar Movement–a Second Superpower?

As the ruling class, its media and its politicians united behind Bush, it was left to the antiwar movement to oppose the drive to war.

The movement in response to Bush’s war in Afghanistan was spirited but small. Antiwar activism acquired a mass character in the run-up to Bush’s assault on Iraq. A host of progressive forces saw through Bush’s propaganda and began to build protests in the U.S. and around the world.

As Washington’s push for war reached even greater intensity in early 2003, the European Social Forum, which had grown out of the global justice movement against neoliberalism, issued a call for an international day of action on February 15, with the slogan “The World Says No to War.” On that day, according to the estimate of the Guinness Book of World Records, between 12 million and 14 million demonstrated in 800 cities in 60 countries around the world. It was the largest day of coordinated protest in human history.

Over half a million marched in New York, as many as 2 million in London, and in the largest action of all, 3 million turned out in Rome. The New York Times went so far as to declare that “the huge antiwar demonstrations around the world this weekend are reminders that there may still be two superpowers on the planet: the United States and world public opinion.”

But one day of protest, no matter how massive around the world, was never going to be enough to stop the war. Bush, in his characteristically shaky command of English, dismissed the mass outpouring of opposition: “You know, size of protest, it’s like deciding, well, I’m going to decide policy based upon a focus group. The role of a leader is to decide policy based upon the security–in this case, the security of the people. Evidently some…don’t view Saddam Hussein as a risk to peace. I respectfully disagree.”

Those protests did play a role in pressuring several traditional U.S. allies to threaten vetoes of any war resolution put forward in the UN Security Council. So Bush abandoned the UN and instead forged an alliance with Britain and some 48 smaller countries like Micronesia that he liked to call a “coalition of the willing”–but would be more accurately termed a “bloc of the bought and bullied.”

U.S. imperialism thus overrode the UN, its traditional allies like France, world public opinion and mass demonstrations to launch a criminal war in Iraq for oil and empire.

Next: The U.S. war machine unleashed in Iraq

http://socialistworker.org/2013/03/18/the-drive-to-a-war-crime




Whalers and Sea Shepherds collide

From ANIMAL PEOPLE,  March 2013:

By Merritt Clifton

The Bob Barker interposing itself between Japanese whaler and fuel ship.

The Bob Barker interposing itself between Japanese whaler and fuel ship. The Japanese ship later rammed the anti-whaling vessel, partially disabling it.

HONG KONG––A Sea Shepherd Conservation Society video posted to YouTube on February 26,  2013 shows the Sea Shepherd vessel Bob Barker being repeatedly crunched between the much larger Japanese whaling factory ship Nisshin Maru and the Sun Laurel,  a Panamanian-flagged fuel oil tanker reportedly carrying a South Korean crew.

The Institute of Cetacean Research,  the Japanese umbrella for “research whaling,  earlier on February 26 released a shorter and more ambiguous video clip which ICR claimed showed the Bob Barker ramming the Nisshin Maru and the Sun Laurel.  The longer Sea Shepherd clip,  appearing to show the same incident,  revealed a different story.

As the video opened,  the Bob Barker was about the width of the Nisshin Maru from either the Nisshin Maru or the Sun Laurel. The Bob Barker held a straight and steady course between the Nisshin Maru and the Sun Laurel,  obstructing the Sun Laurel from refueling the Nisshin Maru for the last ten days of the 2013 ICR whaling campaign.

Five times the Nisshin Maru closed the gap,  hit the Bob Barker broadside with multiple water cannon blasting the Bob Barker’s decks,  and pushed the Bob Barker against the Sun Laurel.  “In the turbulence of the combined wake, the Bob Barker was slammed back and forth between the Nisshin Maru and the fuel tanker,”  said a Sea Shepherd prepared statement.

Twice bright flashes came from flying objects which detonated between the Bob Barker and the Sun Laurel.  The objects appeared to come from the Sun Laurel.

Julia Gillard, Australia's PM. A cold shoulder toward animals. Why do such morally void people get to the top of the political heap everywhere?

Julia Gillard, Australia’s PM. “When did we become the nation that apparently has the capacity to police every ocean in the world?” At a time of desperate crisis, a cold shoulder toward animals. Why do such morally squalid people get to the top of the political heap everywhere?—Eds.

Sea Shepherd founder Paul Watson told media from the Sea Shepherd vessel Steve Irwin that three armed Japanese customs officials had been transferred to the Sun Laurel by the Shirasse,  a Japanese escort vessel.  The flashes,  Watson said,  were from stun grenades.

“You can see in that footage the very small Sea Shepherd ship being tossed around as if in the washing machine,”  Sea Shepherd director Bob Brown told Australian Associated Press.

The Sea Shepherd video appeared to have been taken from a trailing vessel,  believed to be the Steve Irwin.

The Sea Shepherd vessel Sam Simon was also nearby.  During the day’s encounters the Nisshin Maru also collided with the Sam Simon, “causing hull damage along most of the port side of the ship and smashing their satellite communications dome,”  said the Sea Shepherd statement.

Eventually the Nisshin Maru “decided to interrupt her refueling procedure due to the extremely dangerous and foolhardy behavior” of the Sea Shepherd vessels,  the ICR told CNN in Hong Kong.

Cynically, Japan uses the "research" pretext to continue whaling operations.

Cynically, Japan uses the “research” pretext to continue sizable whaling operations.

The February 26 collisions came a week after similar incidents,  after which ICR admitted that the Nisshin Maru had rammed the Steve Irwin and the Bob Barker,  near the Davis Research Base maintained by Australia on the Antarctic coast,  but ICR blamed the contact on Sea Shepherd maneuvers.  The Nisshin Maru also hit the Sun Laurel on that occasion,  Watson said.

The Bob Barker put out a distress call to Australian maritime authorities after it lost power following the February 20 collisons and began taking on water,  but withdrew the call when the crew was able to repair the damage.

Watson predicted on Febru-ary 21 that the ICR fleet would return to Japan,  having apparently killed only 12 whales during the 2013 campaign,  but Hidenobu Sobashima,  the Japan-ese consul-general in Melbourne,  Australia,  said the ICR had only temporarily suspended trying to refuel.

Confronting the Japanese whaling fleet every winter since 2005-2006,  the Sea Shepherds contend that both the Nisshin Maru and the Sun Laurel entered Antarctic waters in violation of international law––the Nisshin Maru to kill whales within a whale sanctuary declared by the International Whaling Commission,  and the Sun Laurel as an oil tanker in a region declared off limits to tankers,  to prevent oil spills from damaging the fragile Antarctic habitat.

The Sea Shepherd position is supported by current Australian environment minister Tony Burke,  but Australia made no effort to intervene.  Asked Australian prime minister Julia Gillard,  “When did we become the nation that apparently has the capacity to police every ocean in the world?”

Merritt Clifton is editor in chief of ANIMAL PEOPLE.




Chronicles of Inequality [March 25, 2013]

Too Much March 25, 2013
THIS WEEK
Apologists for our top-heavy economic order have a ready response whenever anyone starts blasting CEO pay excess. Sure, they tell us, we may have some power-suited stinkers out there, but most rewards are going to deserving high achievers — and then they trot out our national superstar CEO du jour.In the financial sector, that superstar has been JPMorgan Chase CEO Jamie Dimon, “America’s least-hated banker,” the New York Times opined in 2010. The next year Dimon took home $23 million. Pundits did not protest. Hadn’t President Obama himself described JPMorgan as “pretty well managed”?Now a new report from Senator Carl Levin has popped the tires on the Dimon bandwagon. Under Dimon, turns out, JPMorgan has routinely bet federally insured deposits on outrageously risky derivatives and dabbled in everything from illegal flood insurance claims to auto-finance rip-offs.The lesson? We don’t have some CEOs who deserve their millions and some who don’t. We have some whose scams have come to light and others whose scams still lurk in the dark. We’ll continue, in Too Much, to shine all the light we can. About Too Much,
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GREED AT A GLANCE
The most expensive condo in New York! The hemisphere’s tallest residential skyscraper! The superlatives were flying last week when developers officially put on sale apartments in Manhattan’s latest luxury tower. A third of the tower’s 126 units have already sold, and developers are hoping to grab up to $82 million each for the remainder. They’re also rushing to complete the unfinished tower’s construction and collect their loot. Maybe rushing too fast. Last week panels crashed down the building’s face and badly injured a construction worker, thesecond major accident in less than a month. CIM, the building’s private equity firm owner, declined comment last week on the latest safety snafu . . .Michael McCaulHow much did Election 2012 cost? The Center for Responsive Politics has just computed the tab at $6.3 billion, a figure that makes last year’s electioneering “the most expensive” ever. Over half the total spending, $3.6 billion, involved campaigns for Congress. What did these billions bring us? The most out-of-touch Congress ever. The nation’s 94 newest lawmakers, the Center notes, hold “almost exactly $1 million more” in personal wealth than typical Americans. Overall, the 535 current members of Congress have a median net worth of $966,000, about 15 times the nation’s median household wealth. The richest lawmaker of them all? That’s now Michael McCaul, a Texas Republican. McCaul owes the bulk of his $500.1 million family fortune to his wife Linda, the daughter of the founding CEO of the Clear Channel radio empire. . .Austerity? Hard times? Shaky futures? Maybe in your world. In the world people of mega means inhabit things are going swimmingly. Indeed, deep pockets can now go swimming with the fishes deep down in Davey Jones’ locker. Harrod’s, the famous London emporium of all things stylish, is now offering personal submarines that start at just $2 million. The two-person Orcasub can stay submerged for up to 80 hours. The deluxe $9.3-million model looks like “an underwater fighter jet” and steers by foot pedals and a joystick. This Orcasub can descend to 6,000 feet, triple the max depth the entry-level model can dive. Quote of the Week“This is even more reason to worry about inequality. It’s not just year to year ups and downs that have gotten worse. It’s actually the rich are getting richer and staying richer. The poor, poorer and staying poorer.’’
Justin Wolfers, co-author,Rising Inequality: Transitory or PermanentForbes, March 21, 2013
PETULANT PLUTOCRAT OF THE WEEK
Scott GinsburgHumble Scott Ginsburg has never been. As he told a Dallas newspaper in 1999, after making his first millions: “Let me suggest that I don’t have a small ego.” Top officials at Georgetown University, Ginsburg’s law school alma mater, did everything they could to stroke that ego. They promised, for a $5 million donation, to plaster Ginsburg’s name on the university’s new fitness center. Ginsburg would eventually donate $7.5 million to the university. But his name never appeared anywhere. The problem? A federal jury found Ginsburg guilty of leaking inside business info after the university signed the initial naming deal. Georgetown tried to redo the deal. Ginsburg balked. Now he has sued to get all his donations back. Georgetown, his lawsuit charges, has not been “committed to recognizing Ginsburg’s generosity.” Like Too Much?
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IMAGES OF INEQUALITY
Zorzoli fotoPicture Inequality, a global photo competition supported by the Nordic Trust Fund, has just named 11 winners. Photographer Juan Cruz Zorzoli entitled this winning portrait, shot in Argentina’s Rio Negro province, A World without Wheels.  

 

Web Gem

The Other 98%/ An online action center for confronting plutocracy.

PROGRESS AND PROMISE
Keith EllisonIf Congress ever gathered up the nerve to take a swipe at plutocracy at budget time, what might the resulting budget include? Probably everything in the “Back to Work” budget the lawmaker Progressive Caucus brought to the House floor last week. In the plan: tax rates on high incomes topping off at 49 percent and applied to all income, even capital gains. A financial transactions tax on Wall Street speculation and a much higher estate tax rate, too. Some 84 lawmakers had the nerve to vote for the Caucus plan. But 327 didn’t. The budget the House did bless last week calls for slicing the top tax rate from 39.6 to 25 percent. This GOP budget, notesProgressive Caucus co-chair Keith Ellison, winks a clear message: “Hey, rich people, we’ve got you covered.” Take Action
on InequalityAll Americans have a right to petition their leaders, and the White House now offers an online tool for petitioning. Among the latest petition efforts: a drive to “establish a maximum wage.” Sign on to help “promote workplace fairness.”
INEQUALITY BY THE NUMBERS
 Rich Cities  

 

Stat of the Week

Swiss voters will this fall consider a national referendum proposal that limits CEO pay to 12 times the compensation of a firm’s lowest-paid worker. Thecurrent Swiss ratio: 93 to 1. The Swiss ratio in 1998: 14 to 1.

 

IN FOCUS
Some Bailouts Taxpayers Seldom Ever NoticeAll across Corporate America, top execs are feathering their own nests at the expense of their employees. The French have a better idea.Peter Drucker, the analyst who founded modern management science, died in 2005 at age 95. At his death, business leaders worldwide hailed this Austrian-born American for his enormous contribution to enterprise efficiency.But Peter Drucker also cared deeply about enterprise morality. In his later years, he watched — and despaired — as downsizing became an accepted corporate gameplan for pumping up executive paychecks. Drucker could find “no justification” for letting CEOs benefit financially from worker layoffs.

“This is morally and socially,” he would write, “unforgivable.”

If Drucker were still writing today, he’d likely be even more unforgiving. CEOs these days aren’t just slashing worker jobs to add on to their own rewards. They’re slashing worker pay as well — and no CEO may be benefiting more from shrinking paychecks than Ford chief executive Alan Mulally.

Mulally has restored Ford to profitability, his many business and political admirers never tire of pointing out, without having to take any taxpayer bailout. But Mulally has indeed enjoyed a hefty bailout — from his workers.

Entry-level workers at Ford used to make $28 an hour. That rate fell by half when the auto industry financial crunch first hit five years ago and now sits a bit above $19. And since the crunch all Ford workers, not just entry-level workers, have given up cost-of-living wage adjustments and health benefits.

Auto industry execs have declared these worker concessions as absolutely necessary. Without lower compensation for auto workers, the argument goes, the auto industry would never become “globally competitive.” This same reasoning apparently doesn’t apply to compensation for Ford CEO Mulally.

Ford has just announced that Mulally’s pay package for 2012 nearly hit $21 million. His personal rewards for the year almost doubled the pay that went last year to his chief German rival, Daimler CEO Dieter Zetsche, and even more stunningly dwarfed the $1.48 million Toyota CEO Akio Toyoda took home.

But the magnitude of how well Mulally has done for himself — since Ford workers started coughing up concessions — only swings into real focus when we step back and contemplate the towering pile of Ford shares of stock he now holds. In just over a half-dozen years, CNN Money reports, Mulally “has amassed holdings valued at more than $300 million.”

Among America’s CEOs, of course, Mulally hardly stands alone. The outrageousness of American CEO rewards has been building for some time.

Back in 1986, as Forbes noted last week, America’s ten highest-paid CEOs together pocketed $57.88 million in compensation. In 2012, the top 10 pulled in $616.4 million, about five times as much as the 1986 total after taking inflation into account.

Over that same 26-year span, average weekly wages for America’s workersbarely increased at all.

So what should we be doing about CEO compensation? In France, the newly elected government of President François Hollande has placed a 450,000 euro cap — about $580,000 — on executive pay at the 52 companies where the French government holds a majority stake.

This cap will essentially limit executives at these publicly controlled companies to no more than 20 times the pay of their lowest-paid workers.

The French people, for their part, would like to see their government apply a similar cap to executives at all corporations, not just those companies where the government holds a controlling interest.

Earlier this month, just after Swiss voters passed a national referendum that bans executive signing and merger bonuses, a major French pollster asked whether people favored or opposed creating a “maximum wage” for all corporate CEOs. Awhopping 83 percent of the French public supported the idea.

The French may have been reading their Peter Drucker. American CEOs, Drucker believed, should earn no more than 20 or 25 times their worker pay. Last year, in Great Recession-ravaged Michigan, Alan Mulally pulled in over 500 times the pay of Ford’s lowest-paid workers.

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New Wisdom
on WealthOlga Khazan, U.S. Corporate Executives Aren’t the Only Ones Making Tons of Money,Atlantic, March 19, 2013. Behind the recent European Union moves to limit CEO pay: soaring paychecks approaching U.S. levels.Steven Hsieh, Rich CEOs Trying to Pay Even Less in TaxesAlterNet, March 19, 2013. The new CEO drive to reduce the corporate tax to 25 percent and loosen limits on tax havens.

John Cavanagh, Inequality Is Hurting Us All,OtherWords, March 20, 2013. If 1968 levels of income equality still prevailed today, a new study shows, the poorest fifth of Marylanders would be earning twice what they currently take home.

Jeff Madrick, Day of Greed,Harper’s, March 20, 2013. Scanning a day’s headlines for signs of avarice.

Equality and Global WarmingInequality Watch, March 21, 2013. How inequality complicates the work of gaining support for addressing climate change.

Benjamin Page and Larry Bartels, The 1% aren’t like the rest of usLos Angeles Times, March 22, 2013.
New research suggests the wealthy have “very different ideas” on “a variety of policy issues.”

 

 

The Rich Don’t Always Win: The Forgotten Triumph over Plutocracy that Created the American Middle Class cover

What’s Too Much editor Sam Pizzigati’s just-published new book all about? Read the introduction online to get the best sense.

NEW AND NOTABLE
The Great Grab for the Apple Cash StashappleIsaac Shapiro, $45+ billion for Apple shareholders, nothing yet for Apple workers, Economic Policy Institute, Washington, D.C., March 20, 2013.America’s corporations are currently sitting on huge stashes of cash. The tallest stash, over $137 billion high, belongs to Apple, and wealthy investors like hedge fund billionaire David Einhorn have been loudly demanding that Apple ought to start sharing much more of this hoard with shareholdersThis new paper by economist Isaac Shapiro aims to expand the “curiously one-dimensional” debate, at Apple and elsewhere, over corporate cash stashes, a debate that has totally ignored the men and women who actually create the wealth corporations like Apple are now hoarding.

Shareholder distributions mainly enrich the already rich. The workers who manufacture Apple products in Asia, Isaac Shapiro points out, remain already poor, and desperately so. Apple executives pledged a year ago to make major improvements in their pay and working conditions. Those major improvements, the latest investigations have concluded, have not yet taken place.

Meanwhile, stateside, 30,000 workers at Apple stores have annual take-homes that hover around $12 an hour. Last year, by contrast, Apple’s top nine execs took in over $400 million, or $21,000 an hour, at a 40 hour-week.

America’s overall distribution of corporate income, Shapiro adds, has never on record been more unequal than today. If workers here in 2013 were receiving the same share of corporate income they received just a decade ago, some $420 billion additional dollars would now be flowing, nationally, into worker paychecks.

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The American media, ten years after the Iraq war

By Alex Lantier, wsws.org

David Ignatius. His own bioblurb admits, "David Ignatius, a prize-winning columnist for The Washington Post, has covered the CIA and the Middle East for many years. He is the author of the bestsellers Body of Lies and The Increment." The conflict of interest represented by his open links to the CIA is

His own bioblurb admits, “David Ignatius, a prize-winning columnist for The Washington Post, has covered the CIA and the Middle East for many years. He is the author of the bestsellers Body of Lies and The Increment.” The conflict of interest represented by his open links to the CIA is apparently no reason for the WaPo to exclude this shameless agitator for war from its columns. Indeed, it is that talent which makes him valuable to the Post and its oligarchic clientele. —Eds.

Multiple car bombs hit Shiite targets across Iraq yesterday, the tenth anniversary of the US invasion of Iraq, killing 65 and wounding 200. It was a bloody reminder of the effects of the neo-colonial US occupation of Iraq, including Washington’s inflaming of ethno-sectarian conflict and of the escalating Syrian war.

Yesterday’s bombings came after a series of anti-Shiite attacks by affiliates of Al Qaeda in Iraq, a group tied to the Al Nusra Front—currently the leading force in the US-backed Syrian opposition fighting to topple President Bashar al Assad.

Against the backdrop of these continuing atrocities, one can only be disgusted by the US media’s deceitful and perfunctory retrospectives on the Iraq war. They present the war as safely in the past, after the election of an Iraqi government and the formal withdrawal of US troops from Iraq in December 2011. The lies and criminality with which US imperialism prosecuted the war—which devastated Iraq, leading to the deaths of an estimated 1.2 million Iraqis and nearly 4,500 American soldiers, and costing $2 trillion—are either ignored or dismissed as “intelligence failures.”

The American population was railroaded into an unpopular war, despite mass protests, based on lies for which no one has been held accountable. Evidence to show Iraq’s possession of weapons of mass destruction (WMDs) was fabricated by US officials, including in Secretary of State Colin Powell’s 2003 presentation at the UN. US President George Bush and Vice President Dick Cheney falsely claimed that the US had to attack Iraq to prevent it from allying itself with Al Qaeda—which now serves as a US proxy force in Syria.

Given the scale of the crimes and the devastation wrought by the Iraq war, the reaction of the American media has an Orwellian character. Ten years after a massive media campaign to pressure the public to support a war of aggression, there is not one serious review of the events that led to this catastrophe. The story is consigned to two-minute news spots and brief articles.

The New York Times carried a list of brief comments by US academics and state officials, titled “Was it Worth It?” Harvard University professor and former Deputy National Security Advisor Meghan O’Sullivan made the filthy argument, “Believe it or not, we’re safer now” after the war. Reprising the WMD lies, she argued that without invading Iraq, “It is at least conceivable that [former Iraqi President] Saddam [Hussein] would have a nuclear weapon today.”

The Washington Post wrote that Iraq is “teetering between progress and chaos,” acknowledging ongoing sectarian warfare but citing Najaf Governor Adnan Zurfi’s comment that, “Most people now have a good job and lots of opportunities.” Besides the fact that this is a lie, even if it were true, it would not justify a US invasion and occupation of Iraq.

The pundits who most prominently promoted the war—including the New York Times ’ Thomas Friedman and Richard Cohen and David Ignatius of the Washington Post —did not comment on the anniversary. Friedman felt no obligation to give any accounting for his infamous statement that he had “no problem with a war for oil” in Iraq.

The Post columnists were for their part too busy calling for war with Syria to write on their record in Iraq. Welcoming the sending of anti-aircraft missiles to Syrian opposition fighters, Ignatius advocated a US-led occupation of Syria, writing, “Let’s be honest: when Assad is gone and Syria is finally rebuilding its state, it will need massive foreign economic and military assistance—probably including peacekeeping troops from the Arab League or even a NATO country such as Turkey.”

In 2003, Cohen enthused that Colin Powell’s lies on Iraqi WMD at the UN were “a reasonable man making a reasonable case”—a judgment that, as the WSWS noted, he made while “typing away before Powell even finished speaking” in a rush meet his newspaper deadline. He is again rushing to dismiss concerns, this time about “blowback” or unintended consequences from arming Al Qaeda in Syria.

The US should just get on with attacking Assad, Cohen writes. “Blowback is now a given. There is no sure way to avoid it, only to contain it. That can be done only by swiftly arming the moderates and pressing for as quick an end to the war as possible.”

Cohen’s warmongering remarks reflects the emergence of an enthusiastic pro-war constituency in the former liberal, pro-Democratic Party press.

The media’s promotion of aggressive war, now the unquestioned basis of American Middle East policy, is open to the same condemnations as those issued against top operatives of the Nazi propaganda machine. UN Resolution 110, passed after the Nuremburg trials, censured “all forms of propaganda in whatsoever country conducted, which is either designed or likely to provoke or encourage any threat to the peace, breech of the peace, or act of aggression.”

Despite the untold human and financial costs of the war, some have done very well from Operation Iraqi Freedom.

The war bankrupted the United States and devastated Iraq, whose oil fields are now looted by Western firms—including ExxonMobil, BP, Chevron, Shell, and Cheney’s firm, Halliburton. Iraq even faces an energy shortage, with many Iraqi civilians still lacking electricity and running water, as 80 percent of Iraq’s oil is exported by foreign firms. They work closely with the massive US embassy, hidden in Baghdad’s still-fortified Green Zone, to oversee Iraqi Prime Minister Nouri al-Maliki.

US war plans in Iran and Syria flowed inevitably from the initial crime in Iraq. Concerned that its installation of a Shiite regime in Iraq tilted the regional balance of power too far towards Iran, the US let the Persian Gulf monarchies arm right-wing Sunni forces led by Al Nusra against Syria, a key Iranian ally. As yesterday’s bombing showed, Iraq again finds itself in the middle of these war plans.

Ten years after the Iraq war began, US imperialist wars in the Middle East continue, new ones are being prepared, and the political criminals responsible for the wars and their media propagandists go unpunished.

Alex Lantier is a senior political analyst with wsws.org, the informational arm of the Social Equality Party.